Proactive Investors - Exxon Mobil Corp (NYSE:XOM) has filed a court case against two of its investors in an attempt to block a climate proposal from reaching the company’s annual general meeting.
Follow This and Arjuna Capital were sued by the oil giant in a Texas court on Sunday, after calling on Exxon to set targets for reducing carbon emissions.
Exxon argued the investors were “driven by an extreme agenda” however, with the case marking the first time the oil firm has gone to court to block a shareholder motion.
"The breakdown of the shareholder proposal process, one that allows proponents to advance their agendas through a flood of proposals, does not serve the interests of investors,” Exxon said.
Exxon is aiming for net zero scope one and two emission by 2050, relating to pollution from its production processes and energy consumption.
No targets have been laid out to tackle scope three emissions though, which incorporate those generated from the products Exxon sells.
Follow This and Arjuna Capital want Exxon to implement such targets as a result, with the company the last of the five Western oil majors yet to address scope three emissions.
Exxon asked the district court to throw out the proposal from its proxy statement by March 19, before shareholders to meet on May 29.