Investors Fear Exxon Lawsuit Hinders Sustainability Proposals: Report

A group of around 40 large European and American institutional investors, taking Exxon Mobil Corporation‘s XOM lawsuit as an example, urged companies to refrain from suing shareholders over disagreements about their proposals.

The group, which represents $4.4 trillion in assets under management, said long-term investors would suffer if companies increasingly seek the judgment of a court to settle disagreements on shareholder proposals, reported Reuters.

Recently, the group backed a similar call by the U.S. Council of Institutional Investors to companies to let the Securities and Exchange Commission (SEC) arbitrate disagreements over shareholder resolutions.

As per the report, the investors said, “We are concerned that these actions will deter the filing of proposals concerning the sustainability issues that are material to the performance of our equity and fixed income portfolios.”

“We want to protect the right of shareholders to use their vote to decide for themselves when a proposal, sustainability-related or otherwise, is in their best interests and that of their stakeholders.”

Also Read: Guyana Gas Bonanza On Hold: Exxon Reportedly Faces Deadline For Stabroek Development

Investors can gain exposure to the XOM stock via Energy Select Sector SPDR Fund XLE and IShares U.S. Energy ETF IYE.

Price Action: XOM shares are up 0.41% at $113.89 premarket at the last check Tuesday.

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