The Strategist

Activists withdraw proposal to Exxon for additional emissions reductions

02/05/2024 - 02:25

The Financial Times reports, referring to a statement released by the climate group Follow This, that the group has opted to remove a proposal it had intended to include on the agenda of US ExxonMobil's annual shareholders meeting, which aimed to hasten the reduction of greenhouse gas emissions.

Thomas Hawk
Thomas Hawk
To stop the plan, Exxon filed a lawsuit in a Texas district court last week.

"Given that Exxon chose to clear things up in court instead of allowing shareholders to vote freely at the annual meeting, we have decided to withdraw the climate proposal," Follow This’s founder Mark van Baal stated. "The company no longer sees any justification for pursuing legal action."

Follow This and Arjuna Capital, an investment fund, suggested that Exxon arranges a vote on whether to amend the company's current goals and accelerate the medium-term reduction of direct and indirect emissions. Specifically, they aimed to reduce overall operational emissions by half by 2030. The company's current plan calls for a decrease in a number of emissions.

Exxon protested that the proposal should not be placed to a vote since, according to US Securities and Exchange Commission (SEC) rules, shareholders have already rejected a proposal of a similar nature in the last five years.