Exxon Plays Hardball Against Climate NGOs; Investors Furious

ExxonMobil investors will have a chance to weigh in at its annual meeting on the company's hardball approach to the latest shareholder challenge from environmentalists over climate change, Agence France-Presse (AFP) reported.

Exxon's suit has drawn criticism from shareholders like Norway's sovereign wealth fund and California Public Employees' Retirement System (CalPERS).

The US oil giant, which unapologetically favors petroleum investment despite its negative climate impacts, has adopted a more aggressive posture towards activists at this year's virtual meeting compared with years past.

ExxonMobil has sued two shareholder groups, NGO Follow

This and activist fund Arjuna Capital, which sought an investor vote on a measure to limit emissions.

Its suit, which includes seeking legal fees, has drawn criticism from shareholders like Norway's sovereign wealth fund and California Public Employees' Retirement System (CalPERS).

A large number of votes against ExxonMobil board nominees would signify shareholder disgust with the company's tactics. CalPERS called climate change "a serious threat to long-term investment returns," while arguing that ExxonMobil's litigious tactics could have "devastating" consequences for corporate governance.

"If ExxonMobil succeeds in silencing voices and upending the rules of shareholder democracy, what other subjects will the leaders of any company make off limits? Worker safety? Excessive executive compensation?"

CalPERS said it would vote against all 12 board nominees "to send a message that our voices will not be silenced."