Overview

• Exxon Mobil has filed a lawsuit against activist investors Follow This and Arjuna Capital to prevent their climate proposal from being voted on at the company's annual shareholder meeting.
• The proposal calls for Exxon to adopt stricter 'Scope 3' targets to reduce emissions produced by users of its products, a measure already adopted by other major Western oil companies.
• Exxon argues that the proposal violates SEC rules for investor petitions and is driven by an 'extreme agenda' that does not serve the interests of shareholders.
• This is the first time Exxon has resorted to legal action to exclude a shareholder proposal, and a win could have significant implications for future shareholder activism.
• The case has been assigned to a judge in the US District Court for Northern District of Texas, and Exxon has requested a decision by March 19, ahead of its annual shareholder meeting on May 29.