Reuters | Activist shareholder group Follow This said on Friday it has withdrawn a climate resolution against Exxon Mobil after the oil giant sought to block the move through a Texas court.
Exxon’s unusual legal action has been closely watched by investor activists worried the move could lead other companies to block shareholder resolutions in court, rather than through the usual process of appealing to regulators.
Exxon said in a court filing on Thursday that Follow This and activist investment firm Arjuna Capital were withdrawing the resolution they wanted to bring to the company’s shareholder meeting in May.
“Given Exxon’s preference to fight a battle in court rather than allow shareholders the freedom of a vote at its annual meeting, we decided to withdraw the climate proposal,” Follow This founder Mark van Baal said in a statement.
In a statement, Exxon said that it is continuing with the suit despite the withdrawal. “We believe there are still important issues for the court to resolve. There is no change to our plans,” Exxon said.
