Exxon’s Unusual Legal Move: Suing Its Own Shareholders
The logo for ExxonMobil appears above a trading post on the floor of the New York Stock Exchange. (AP Photo/Richard Drew, File)
Dutch climate advocate Mark van Baal built a reputation using an unconventional approach: purchasing small stakes in oil companies so he could submit shareholder proposals urging them to reduce emissions. The method, while technical, proved surprisingly effective, gaining attention as a way to pressure major energy firms from within.
That strategy hit a major obstacle in 2023 when van Baal’s group, Follow This, set its sights on ExxonMobil. Instead of engaging in the usual back-and-forth, Exxon took the rare step of filing a lawsuit against its own shareholders—targeting both Follow This and its U.S. partner, Arjuna Capital—in an effort to block the proposal entirely.
The episode reflects a broader shift. Earlier successes had pushed companies like Shell and BP, along with several American firms, to adopt emissions goals. Around the same time, Wall Street briefly leaned into the Environmental, Social, and Governance movement. But that momentum has since faced strong resistance, including political pushback at the state level and legal challenges like Exxon’s.
Even after Follow This withdrew its proposal, Exxon continued its legal pursuit until Arjuna Capital agreed not to submit similar climate-related resolutions in the future. Critics worry that the case has had a chilling effect on shareholder activism aimed at environmental reform across the U.S.
Van Baal remains committed, though he’s reconsidering his tactics. He believes meaningful change could hinge on a single breakthrough: if one major oil company proves it can remain profitable while shifting to renewable energy, he argues, both investors and customers would reward that move—prompting competitors to follow suit.
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