NEW YORK– Shareholders of the American oil giant ExxonMobil re-elected all of its directors on Wednesday, amid a controversy with activist investors over alleged climate change.
“Our investors sent a powerful message. (…) Their vote illustrates the conviction that we are on the right path, by overwhelmingly re-elect our mentors y massively reject the four resolutions that would have hindered our ability to create long-term value“said the group in a statement sent to AFP.
The vote took place after the oil giant filed lawsuits against several environmental shareholders who They requested strict lines for the reduction of emissions of the so-called greenhouse effect. However, the company has previously implemented responsible measures on the issue.
The falsehood of the so-called environmentalists
Extremist investors demanded more, a request that the management of the oil transnational company unanimously rejected.
ExxonMobil launched two lawsuits against radical groups of shareholders – the NGO Follow This and the investment company Arjuna Capital – that sought to approve counterproductive regulations to limit greenhouse emissions.
The two entities renounced their extremist position, but the company demands that they pay the legal costs of the clash.
The lawsuits drew some criticism from foreign shareholders, such as Norway’s sovereign wealth fund and California’s public employees’ pension fund, the powerful CalPERS.
CalPERS called climate change “a serious threat” to long-term investments, and argued that litigation could have “devastating” consequences for corporate governance.
CalPERS announced that it would vote against the 12 board nominees. The decision “will send a message that our voices cannot be silenced,” she added.
However, the 12 board candidates obtained an average of 95% of the votes, which meant a forceful response to the intentions of the so-called progressives (socialists).
Climate extremists seek money and destruction
The back-and-forth occurred after Arjuna and Follow This called for a vote in December on a plan for the oil company to rapidly reduce greenhouse emissions.
ExxonMobil argued that the proposal was the same one that was rejected by nearly 90% of shareholders at the 2023 meeting.
These ideas are “extremely expensive, unpaid, and time-consuming to implement,” the company said. The executives also indicated that the proposal “does not improve ExxonMobil’s economic performance in any way or create value for shareholders, on the contrary”; generates large losses without guarantees that they will work.
In its complaint, the firm indicated that the proponents’ real goal is to “force ExxonMobil to change the nature of its business or close.”“.
They withdraw the lawsuit but ExxonMobil perseveres in the litigation
After the company appeared in federal court in Texas in January, Arjuna and Follow This withdrew their proposal, implying that their true purpose was to disrupt ExxonMobil’s revenue and make it disappear.
However, ExxonMobil persevered with the litigation to send a clear message to those who try to do the same in the future.
District Judge Mark Pittman last week dismissed the case against Follow This, an organization based in the Netherlands, for lacking jurisdiction over the group. But he allowed the suit to continue against Arjuna.
In a letter sent on May 27 to ExxonMobil, Arjuna, through Natasha Lamb, a member of its board, rejected the company’s arguments about the allegedly “environmental” proposal, and indicated that his firm’s focus on climate change “is consistent to ensure future financial success.”
The statements were rejected and clarified immediately by ExxoMobil directors.
The executive pledged not to present any more proposals on climate change at Exxonmobil and hopes that the oil company will withdraw its lawsuit.
Source: With information from AFP.
