Activist company Engine No. 1 claims third seat on Exxon board

Activist company Engine No. 1 claims third seat on Exxon board

A third seat on Exxon’s board has been claimed by Engine No. 1, the activist company that targets the oil giant because of its dependence on fossil fuels, the company said in a statement on Wednesday.

The announcement, which is still based on preliminary results, follows two seats on Exxon’s board of directors annual general meeting of shareholders on May 26. The vote on the third seat was too close to be called at the end of the meeting.

“We look forward to working with all of our directors to build on the progress we have made to increase long-term shareholder value and succeed in a low-carbon future,” Exxon Chairman and CEO Darren Woods said in a statement Wednesday.

Engine No. 1, which owns 0.02% of Exxon’s capital, has been targeting the company since December, prompting it to reconsider its role in a zero carbon world.

Last week’s vote followed months of back-and-forth between the No.1 engine and Exxon. The activist company nominated four independent director candidates and garnered support from major pension funds, including CalPERS, CalSTRS and the New York State Common Retirement Fund.

The annual shareholders’ meeting lasted several hours and was held in two parts with a break of about an hour in between due to a number of votes still cast.

“We are grateful for the attention shareholders have given to our nominees and are delighted that these three individuals are working with the entire Board of Directors to help better position ExxonMobil for the long-term interests of all shareholders.” , the No.1 engine said in a statement. Wednesday.

For their part, Exxon’s management highlighted the steps they are taking to strengthen their role in a low-carbon future, including allocating $ 3 billion for research into carbon capture and other technologies. reduction in emissions.

The defeat of the nominees put forward by Exxon suggests that shareholders are considering the oil giant’s place in a world moving away from fossil fuels. The company’s shares are up nearly 50% for 2021, but they are lagging the broader market over the long term. Driver # 1 indicates that Exxon’s future financial stability depends on the diversification of its operations.

Chevron and Shell are two other oil companies that have faced climate pressures in the past week. Chevron shareholders have voted against the company’s management on a key climate proposal, while a Dutch court has ordered Royal Dutch Shell to take much more aggressive action to reduce its carbon emissions.

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