Exxon faces opposition from CalPERS after 'devastating' anti-ESG activist suit
CalPERS Rebels Against Exxon: ESG Battle Heats Up?
CalPERS has announced it will not support Exxon Mobil's board or CEO Darren Woods in the upcoming shareholder meeting due to Exxon's ongoing lawsuit against environmental activists Arjuna Capital and Follow This. The lawsuit began after the activists proposed measures for Exxon to enhance its environmental disclosures and set stricter emissions targets, which Exxon is seeking to permanently block. Despite the withdrawal of the proposal by the activists, Exxon continues the legal battle, prompting CalPERS to criticize the move as detrimental to shareholder activism and to urge other shareholders to oppose Exxon’s current leadership to protect shareholder rights.
How has CalPERS responded to Exxon Mobil's legal actions against the environmental activists, and what actions are they taking at the upcoming shareholder meeting?
CalPERS, the $484 billion pension fund manager, has responded to Exxon Mobil's legal actions against environmental activists by announcing its opposition to all of Exxon's 12 director nominees and its CEO, Darren Woods, at the upcoming shareholder meeting. CalPERS has a $1 billion stake in Exxon and is urging other shareholders to follow its lead "to send a message that our voices will not be silenced." They believe Exxon's "reckless" lawsuit threatens shareholder activism efforts on any issue.
What specific environmental disclosures and targets were included in the shareholder proposal submitted by Arjuna Capital and Follow This?
The shareholder proposal submitted by Arjuna Capital and Follow This requested that Exxon Mobil reduce its direct emissions and set a target for lowering emissions at suppliers and customers. The activists wanted Exxon to accelerate the pace of reduction of its greenhouse gas emissions and publish new plans, targets, and timetables4. Specifically, they asked the company to reduce its operational greenhouse gas emissions by 50 percent on an absolute basis by 2030 and introduce targets reducing Scope 3 emissions consistent with limiting global warming to 1.5 degrees Celsius.