Financial Times | A US judge has dismissed ExxonMobil’s lawsuit against an activist shareholder who challenged the oil major’s climate change risks, capping a stand-off with environmentalists and giant pension funds.
The decision ends a six-month campaign by Exxon to fend off shareholders who have for years filed petitions at the company’s annual meeting to challenge its efforts on climate change.
The case had been watched closely on Wall Street as some big investors, including pension giant Calpers and Norway’s $1.5tn sovereign wealth fund, accused Exxon of seeking to undermine shareholder rights.
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Arjuna chief investment officer Natasha Lamb said the firm was pleased with the judge’s decision, adding: “Climate change presents real headwinds to the oil and gas industry and deflection will not change that simple fact.”
Netherlands-based Follow This is headed by Mark van Baal, who has campaigned against oil majors including Exxon and Shell by using shares voted at companies’ annual meetings to agitate for cutting carbon emissions.
Exxon’s case against Follow This had already been dismissed on jurisdiction grounds.
“If allowed to continue, this case could have had a detrimental effect on shareholder proposals focused on climate,” van Baal said. “This dismissal may prevent a dangerous wave of litigation against shareholders.”
