Exxon Rejects Arjuna Capital’s Climate Proposal Withdrawal in Texas Lawsuit

Exxon Rejects Arjuna Capital's Climate Proposal

Exxon Mobil Corp. is not backing away from a Texas lawsuit accusing investment adviser Arjuna Capital of improperly meddling in its business affairs by backing a proposal to reduce the company’s greenhouse gas emissions, calling promises not to resubmit similar proposals in the future “toothless” in the wake of activist shareholder pressure to change the company’s climate policy.

Exxon said in a court document Friday that it was not swayed by Arjuna’s recent stipulation to never again submit proposals for a shareholder vote on climate change or greenhouse gas emissions.

The withdrawn 2024 proposal alongside a promise not to refile moots the case filed by Exxon, Arjuna said in its second attempt at dismissal.

Exxon disagreed, saying that the newly broadened promise—sent via a May 27 letter—is just as “toothless” as the one U.S. District Judge Mark T. Pittman refused to entertain May 22.

Arjuna has not backed off its claims that the 2024 proposal at the heart of the lawsuit was proper, and the firm supported a failed bid of no confidence against the oil company’s CEO and lead independent director, Exxon said.