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Exxon Mobil is suing two sustainable investment firms, Arjuna Capital and Follow This, to block them from a shareholder proposal.
The proposal calls for increased commitments to reduce greenhouse gas emissions and an expanded focus on customer emissions.
The Houston-based oil giant filed a federal lawsuit in Texas.
It alleges Arjuna and Follow This became Exxon shareholders to disrupt the company's existing business.
Arjuna Capital submitted a proposal in December.
It urged shareholders to pass resolutions that would accelerate the pace of emission reductions beyond Exxon's current plans.
Follow This joined the proposal the following day.
It advocated for a departure from Exxon's policy by recommending the targeting of emissions from suppliers and customers in addition to the company's own emissions.
Exxon said: “Defendants are asking Exxon Mobil to change its day-to-day business by altering the mix of—or even eliminating—certain of the products that it sells.”
The oil company claimed its goal is “to force Exxon Mobil to change the nature of its ordinary business or to go out of business entirely.”
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Arjuna Capital and Follow This has presented investor proposals at Exxon and other oil and gas firms for over a decade.
Both firms did not immediately respond to requests for comment.
The case comes amid a broader political backlash against the increasing influence of environmental, social, and governance (ESG) issues in investment decisions.
Exxon seeks to challenge federal regulators legally, bypassing the usual Securities and Exchange Commission (SEC) process for excluding shareholder proposals.
The proposal in question bears similarities to one put forward in 2022 and 2023.
10.5 percent of shareholders supported it last year, falling short of the 15 percent threshold needed for resubmission.
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