ExxonMobil files lawsuit to block investor climate proposal

The news: ExxonMobil filed a lawsuit in a US district court seeking to block a climate proposal by activist investors from going to a vote during the company's annual shareholder meeting, Reuters reported.

The numbers: The Dutch green activist investor group Follow This has called for the US oil and gas giant to accelerate its efforts to reduce greenhouse gas emissions, as well as join the other four Western oil majors in setting so-called Scope 3 targets. Follow This has set out similar proposals in previous Exxon shareholder meetings, receiving 28% approval in 2022 and 10% last year.

The context: In its latest move, Exxon argued that the investor's proposal violates investor petition rules set out by the US Securities and Exchange Commission, and asked the court to make a decision by 19 March, prior to its annual meeting on 29 May. It's the first time the energy company has sought to exclude a shareholder proposal through court.

What they said: Exxon said the activist investors are "driven by an extreme agenda" and that they pursued a strategy to "become shareholders solely to campaign" for changes "calculated to diminish the company's existing business".