The No.1 engine, no matter how small, managed to secure at least two seats on the oil giant’s board after a devastating battle against Exxon’s board. The vote on a third candidate backed by the No.1 engine is currently undecided, as it is too close to the call. Engine # 1 failed in its fourth candidate.
The No.1 engine only has a $ 54 million stake in Exxon.
Exxon, for its part, managed to get eight of its candidates to the board. There are twelve places.
The victory is seen as a shocking and powerful statement by shareholders about their displeasure with the oil giant for not doing enough to mitigate the effects of its activities on the climate. And for Exxon, that could mean big changes are coming.
The No.1 engine nominated and supported four candidates, and was successful in getting other large pension funds in its area to support these candidates. Funds supporting No.1 Engine applicants include the New York State Pooled Retirement Fund, the California Public Employees Retirement System (CalPERS), and the California State Teachers Retirement System ( CSTRS).
“We have called for change at ExxonMobil, and a record number of shareholders, including many of the world’s largest investors, have voted in favor of corporate accountability,” CalSTRS said in a statement released on its website after the vote.
The candidates proposed by the No.1 engine were directors with experience in transforming the energy industry, who would factor the risks of climate change into a long-term business plan.
instead of “just talking points”.
For Exxon, those “talking points” include $ 3 billion in research into carbon capture and emission reduction technology, as well as the election of an ESG investor to its board of directors in March. Today’s vote suggests that was not enough for shareholders.
Ahead of Wednesday’s vote, some analysts suggested that Exxon CEO Darren Woods might not be able to keep his CEO job if one of the No.1 engine candidates succeeded in solidifying a seat on the board of directors. administration of the oil giant.
By Julianne Geiger for OilUSD
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