The complaint, filed in a U.S. District Court in Texas, said a proposal by activist investors calling for the oil giant to cut emissions faster would not create shareholder value.

The complaint, filed in a U.S. District Court in Texas, said a proposal by activist investors calling for the oil giant to cut emissions faster would not create shareholder value.

Exxon Mobil is suing two activist investors to prevent their proposal calling for emissions cuts at the oil giant from going to a vote of shareholders.

In a complaint filed in U.S. District Court for the Northern District of Texas on Sunday, Exxon accused the investors, Arjuna Capital and Follow This, of abusing the process for proposing shareholder votes to advance their priorities with votes “calculated to diminish the company’s existing business.”

Arjuna filed a proposal in December for a nonbinding resolution that urged Exxon to accelerate its plans to reduce its carbon emissions and expand the scope of the emissions it measures to include its suppliers and customers. Follow This joined in support of the proposal shortly thereafter, according to the complaint.

The proposal “does not seek to improve ExxonMobil’s economic performance or create shareholder value,” Exxon said in the complaint, but is instead “constraining and micromanaging” the company’s operations.

Non-paywall link

  • DarkNightoftheSoulEnglish
    77·
    10 months ago

    The entire problem in a nutshell. Why won’t these shareholders think about shareholder value!?

    • nexusband@lemmy.world
      14·
      10 months ago

      No, that’s not capitalism, that’s rampant stupidity. Imagine how much fucking money these companies could make, if they invested the same money the do for oil in to synthetic stuff, the potential is unlimited and with the CO2 Tax in most other countries, Oil is going to shit the bed crazy. They are afraid to change the status quo, regardless if it would be the smarter, economical decision.

  • originalfrozenbanana@lemm.ee
    51·
    10 months ago

    It doesn’t improve ExxonMobil’s performance literally today, but it does when, you know, the world doesn’t end as fast. Literally “think beyond today”

    • TimLovesTech (AuDHD)(he/him)@badatbeing.socialEnglish
      12·
      10 months ago

      Have them pretend they produce coal instead of oil. Now you have 2 choices, keep doing what you’re doing (and end up where coal is now), or actually diversify into more green energy and stay sustainable long term. Staying around long term seems like a better return to me.

      • crimsonpoodle@pawb.social
        2·
        10 months ago

        The executives don’t care; their incentives are for short term profits as that’s how they get their bonuses and pay hikes. They would likely dismantle the company tomorrow and sell it for scrap if would mean they would end up pocketing the majority of it. (Obviously considering the size of the company and its importance, and pesky legal regulations, they probably wouldn’t get away with scrapping it but the point is they would if they could)

        • TimLovesTech (AuDHD)(he/him)@badatbeing.socialEnglish
          1·
          9 months ago

          This is also driven out of a requirement to always maximize returns for shareholders, even if long term it doesn’t make sense for the company.

          It’s almost like capitalism isn’t designed with the company or workers in mind, and will devour both for another cent. 😜

    • quicklime@lemm.ee
      6·
      10 months ago

      Amazing how “increase shareholder value” is in direct opposition to keeping the shareholders, their descendants, and modern civilization itself viable.

  • SeaJ@lemm.ee
    40·
    10 months ago

    I feel like long term growth absolutely works towards shareholder value.

  • thefartographer@lemm.ee
    38·
    10 months ago

    When asked for comment, ExxonMobil cried and shit itself and said it wanted its Daddy. The active judge then disrobed, revealing his withered body and began to breastfeed ExxonMobil while saying “there’s my special big boy, Daddy won’t let the mean shareholders hold you accountable ever.” When the judge’s back was turned, reporters noticed a tattoo across his shoulders which read “Their Delicious Souls” with tattoos of dozens of screaming babies under it. One member of the plaintiff’s council then shouted, “oh my God! Those aren’t tattoos!” Everyone began to scream and run, but before they could exit the courtroom, scores of souls cursed in eternal damnation leapt from the judge’s back and consumed victims in horrible ways that resulted in scarred visions this reporter will never unsee. “Amateurs,” claimed ExxonMobil, who then shitted themselves one final time and the awful sludge rolled down their legs and killed an entire Brazilian tribe just before choking a bunch of ducklings for fun.

  • DarkMessiah@lemmy.world
    232·
    10 months ago

    We need to get rid of the big corporations. Just… all of them. Maybe even the idea of corporations as a whole. Get them gone, they’re actually killing human civilisation as we know it. We’re going to actually be Cyberpunk if this keeps up.

    Drastic step, I know; and one that’s… unlikely, to say the least. Just saying things how I see it.