U.S. oil giant Exxon Mobil sues activist investors to prevent climate proposals

Exxon Mobil filed a lawsuit against U.S. and Dutch activist investors in a bid to stop them from submitting climate proposals during the oil giant's annual shareholder meeting.

It marks a first for the U.S. oil major and is the latest step in an intensifying battle between companies and environmental campaigners.

The complaint was filed Sunday in the U.S. District Court for the Northern District of Texas against Massachusetts-based investment firm Arjuna Capital and Follow This, an Amsterdam-based activist investor group.

An Exxon Mobil win in the proceedings could have a chilling impact on future shareholder petitions.

The Securities and Exchange Commission, the U.S. financial regulator, has overseen a growing number of environmental and social shareholder proposals during the past two proxy seasons.

In an emailed statement, Exxon Mobil said "the breakdown of the shareholder proposal process, one that allows proponents to advance their agendas through a flood of proposals, does not serve the interests of investors."

The company added, "We are simply asking the court to apply the SEC's proxy rules as written to stop this abuse and eliminate the significant resources required to address them."

The oil major has accused Arjuna Capital and Follow This of being driven by an "extreme agenda" and claimed they both submit shareholder proposals to undermine the firm's business.

In its filing, Exxon Mobil said that it requires relief from the court by March 19, because it must file its proxy statement by April 11. The Houston-based firm is scheduled to hold its annual shareholder meeting on May 29.

"With this remarkable step, ExxonMobil clearly wants to prevent shareholders using their rights," Follow This' Mark van Baal said in a