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The withdrawn 2024 proposal alongside a promise not to refile moots the case filed by Exxon, Arjuna said in its second attempt at dismissal.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

Those actions demonstrate that the issue at the center of the case—whether or not shareholders can direct the company's climate policy—is still active, Exxon said.

"Dismissing this case as moot would embolden Arjuna and other activist shareholders to flood ExxonMobil and other public companies with improper shareholder proposals, knowing they always have 'a get-out-of-court-free card' in their back pockets," Exxon said, quoting Judge Pittman in his earlier ruling against dismissal.

The company said it has sent a letter to Arjuna on May 29 calling on the investment adviser to decry its original proposal, which sought quicker reductions of Exxon's emissions, and asked Arjuna to declare that it won't aid other shareholders in filing similar proposals in the future.

"Arjuna has not yet agreed to these terms," Exxon said, and absent such an agreement, the case is not moot, the company said.

"The court could prevent Arjuna from attempting to skirt its promise by colluding with other activist shareholders to resubmit the 2024 proposal," the company said.

Arjuna didn't immediately respond to a request for comment.

Exxon sued the adviser in January, sidestepping the usual process of asking the U.S. Securities and Exchange Commission for permission to leave certain shareholder proposals off of corporate ballots.

Experts have said that the decision to bypass the SEC likely reflected growing corporate frustration with the agency's greenlighting in recent years of a number of shareholder proposals targeting environmental and social issues like climate change and abortion.

Exxon continues to push for a court ruling that climate proposals like the one put forth by Arjuna violate SEC rules against shareholder proposals that target the day-to-day functioning of a business, despite the fact that the adviser withdrew the proposal after being sued.

Judge Pittman refused an earlier request by Arjuna to dismiss the lawsuit after promising not to resubmit a similar proposal in the future, saying that the promise was "not an enforceable contract."

Exxon is represented by Mark W. Rasmussen, Jonathan D. Guynn, Noel J. Francisco, Brett A. Shumate and Megan Lacy Owen of Jones Day, Gregg J. Costa and David Woodcock of Gibson Dunn & Crutcher LLP and Ralph H. Duggins and Scott Fredricks of Cantey Hanger LLP.

Arjuna Capital is represented by Matthew E. Miller and Veronica M. Renzi of Foley Hoag LLP and Ross Mortillaro and Zachary Ford of Stinson LLP.

The case is Exxon Mobil Corp. v. Arjuna Capital LLC et al., case number 4:24-cv-00069, in the U.S. District Court for the Northern District of Texas.