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Activist group targets Exxon with shareholder climate resolution -Breaking

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© Reuters. FILEPHOTO: This sign can be seen at Exxon’s Brooklyn station on November 23, 2021. REUTERS/Andrew Kelly/File photo

Ron Bousso & Sabrina Valle

LONDON, (Reuters) – Climate activist group Follow This Targeted Exxon Mobil Corp (NYSE) with a shareholder resolution asking it to increase its carbon emission reduction targets. This will intensify pressure on the oil-and gas company regarding its energy transition strategy.

Exxon is urged to release medium- and long-term goals for reducing greenhouse gas (GHG), emissions from operations, and burning fuels sold customers. This resolution will be presented at the 2022 Annual General Meeting.

During the Trump presidency, Exxon successfully blocked similar attempts at filing resolutions to the Securities and Exchange Commission. Exxon didn’t respond to an inquiry regarding whether it wanted to prevent the Follow This resolution.

Dutch organization Follow This Dutch organisation first targeted Royal Dutch Shell in 2016. Later, it expanded its actions to include other major oil and gas companies. This gained increasing shareholder support. This is Exxon (NYSE:) and Marathon Petroleum Corp (NYSE :)’s first attack on American companies.

Recent years have seen a variety of climate strategies being implemented by businesses.

The company has filed new resolutions. Chevron (NYSE -), ConocoPhillips NYSE –), Occidental Petroleum NYSE –, and Phillips 66 NYSE – as well as Shell and BP NYSE – PLC for 2022 meetings.

In an investor briefing, Mark van Baal of Follow This stated that Big Oil executives had shown in the past years they would only act if their shareholders voted for climate resolutions.

Exxon Investors said Thursday in a joint report that they would like the company’s chief executive to be replaced and to take more action to cut GHG emissions.

Six months after hedge fund Engine No. Exxon appointed three directors to its board of directors to help improve their climate strategy. The report said that the board and its management have failed to do enough to make Exxon a more sustainable company.

Exxon announced earlier in the month that its updated investment strategy for 2027 was available. This will increase spending over six years to reduce GHG emissions and bring total expenditures to $15 billion.

According to Sean Comey, Chevron’s board will “examine proposals by shareholders and make recommendations to stockholders regarding how to vote on each request.” The proxy statement is scheduled for April 7.

Marathon, BP, and Shell all confirmed that they received the resolution. Conoco, Phillips 66, and Conoco did not respond to requests for comment.

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