ExxonMobil Delivers Exceptional Results, ESG Activist Investors Unimpressed
ExxonMobil is receiving criticism from its environment, sustainability and governance (“ESG”) activist investors despite delivering exceptional results over the last quarter. ESG has become a major trend in financial circles in recent years amid national and global efforts to transition from fossil fuels and protect communities as well as the environment.
Ecofriendly investors typically use ESG considerations to determine which companies to invest in to ensure sustainability-related sectors receive the funding they need to grow. Companies such as ExxonMobil with deep ties to the fossil-fuel industry are obligated to ensure their operations are as green and sustainable as possible while they work to eliminate fossil fuels from their supply chains.
Unfortunately, activist investors at the company say corporate-management priorities seem to be superseding ESG considerations. ExxonMobil has seen its earnings surge extraordinarily over the last two years, with its stock prices hitting an all-time high in April. Its market value is also at record high levels, a sure sign of the company’s recent financial success.
Despite the current board’s financial achievements, public pension fund managers in Illinois, New York and California as well as other ESG-focused investors aren’t happy. Rather than applaud high market capitalizations or surging stock prices, these investors are more interested in cutting ExxonMobil’s greenhouse-gas emissions.
These investors sponsored a proposal that would compel the company to speed up its efforts to cut greenhouse-gas emissions and achieve carbon neutrality by 2050, but Exxon management filed a federal suit to stop what it called a “nonsense resolution.” Follow This and Arjuna Capital, two of the multiple activist investors that sponsored the resolution, have ties to the Interfaith Center for Corporate Responsibility (“ICCR”), a coalition that believes companies need to look past their earnings report and analyze how they impact society.
Furthermore, the ICCR contends that corporations should also view their stakeholders’ well-being as integral to their long-term success.
Activist investors are especially displeased with chair and CEO Darren Woods as well as Joseph Hooley, the lead independent board member at ExxonMobil. Glass Lewis even advised its clients to oppose Hooley’s re-election based on the view that that company’s decision to fight the green-energy acceleration proposal at a federal court represents “unusual and aggressive tactics” against what the proxy advisory company refers to as “resource-constrained parties.”
In a letter sent to Glass Lewis on May 15, 2024, ExxonMobil requested the withdrawal of the recommendation and noted that Glass Lewis had a conflict of interest in the matter.
For entities that have integrated ESG into their entire operations, such as First Tellurium Corp. (CSE: FTEL) (OTCQB: FSTTF), the court battles that the ExxonMobil board is facing may never happen since any shareholder value delivered will possibly have ESG embedded in it.
NOTE TO INVESTORS: The latest news and updates relating to First Tellurium Corp. (CSE: FTEL) (OTCQB: FSTTF) are available in the company’s newsroom at https://ibn.fm/FSTTF
Please see full terms of use and disclaimers on the ESGWireNews website applicable to all content provided by ESG, wherever published or re-published: https://www.ESGWireNews.com/Disclaimer
ExxonMobil is receiving criticism from its environment, sustainability and governance (“ESG”) activist investors despite delivering exceptional results over the last quarter. ESG has become a major trend in financial circles in recent years amid national and global efforts to transition from fossil fuels and protect communities as well as the environment.
Ecofriendly investors typically use ESG considerations to determine which companies to invest in to ensure sustainability-related sectors receive the funding they need to grow. Companies such as ExxonMobil with deep ties to the fossil-fuel industry are obligated to ensure their operations are as green and sustainable as possible while they work to eliminate fossil fuels from their supply chains.
Unfortunately, activist investors at the company say corporate-management priorities seem to be superseding ESG considerations. ExxonMobil has seen its earnings surge extraordinarily over the last two years, with its stock prices hitting an all-time high in April. Its market value is also at record high levels, a sure sign of the company’s recent financial success.
Despite the current board’s financial achievements, public pension fund managers in Illinois, New York and California as well as other ESG-focused investors aren’t happy. Rather than applaud high market capitalizations or surging stock prices, these investors are more interested in cutting ExxonMobil’s greenhouse-gas emissions.
These investors sponsored a proposal that would compel the company to speed up its efforts to cut greenhouse-gas emissions and achieve carbon neutrality by 2050, but Exxon management filed a federal suit to stop what it called a “nonsense resolution.” Follow This and Arjuna Capital, two of the multiple activist investors that sponsored the resolution, have ties to the Interfaith Center for Corporate Responsibility (“ICCR”), a coalition that believes companies need to look past their earnings report and analyze how they impact society.
Furthermore, the ICCR contends that corporations should also view their stakeholders’ well-being as integral to their long-term success.
Activist investors are especially displeased with chair and CEO Darren Woods as well as Joseph Hooley, the lead independent board member at ExxonMobil. Glass Lewis even advised its clients to oppose Hooley’s re-election based on the view that that company’s decision to fight the green-energy acceleration proposal at a federal court represents “unusual and aggressive tactics” against what the proxy advisory company refers to as “resource-constrained parties.”
In a letter sent to Glass Lewis on May 15, 2024, ExxonMobil requested the withdrawal of the recommendation and noted that Glass Lewis had a conflict of interest in the matter.
For entities that have integrated ESG into their entire operations, such as First Tellurium Corp. (CSE: FTEL) (OTCQB: FSTTF), the court battles that the ExxonMobil board is facing may never happen since any shareholder value delivered will possibly have ESG embedded in it.
NOTE TO INVESTORS: The latest news and updates relating to First Tellurium Corp. (CSE: FTEL) (OTCQB: FSTTF) are available in the company’s newsroom at https://ibn.fm/FSTTF
Please see full terms of use and disclaimers on the ESGWireNews website applicable to all content provided by ESG, wherever published or re-published: https://www.ESGWireNews.com/Disclaimer
