The complaint is directed towards Arjuna Capital and Follow This, who have urged Exxon to accelerate its efforts to reduce greenhouse gas emissions.
According to Exxon, investors from the US and the Netherlands have a “extreme agenda”.
This is the first time Exxon has taken a company to court to stop shareholder motions, as it happens very infrequently.
Future shareholder petitions would be significantly impacted if the Texas-based firm prevails in the case.
Listed companies often engage in discussions with the Securities and Exchange Commission (SEC) regarding the merits of individual proposals.
However, detractors claim that the US financial regulator changes its recommendations based on the government in power.
For instance, the SEC reports that environmental activists have filed a notably higher number of motions in recent years.
Exxon should establish so-called Scope 3 targets to lower emissions from its oil and gas users, according to Follow This and Arjuna Capital.
As for Scope 1 and Scope 2 emissions—that is, pollution from its production processes and energy consumption—Exxon currently plans to achieve net zero by 2050. Nevertheless, out of the five Western oil majors, it is the only one without any Scope 3 targets.
According to Exxon, the Follow This and Arjuna plan is against SEC guidelines for petitions from investors.
The business told the BBC that “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” .
In its proxy statement, Exxon requests that a judge in the US District Court for the Southern District of Texas strike out the Scope 3 proposal.
In order to make it in time for its annual shareholder meeting on March 29, the company has requested a decision by March 19.
