For a safer world, 10,000 emails sent to remove ExxonMobil’s Head
May 06, 2021 News
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Climate Change Rebellion heightens
Kaieteur News – Nasdaq, one of America’s largest stock exchange markets, recently learned that climate activists are looking to get rid of ExxonMobil’s Chief Executive Officer (CEO), Darren Woods, along with the oil giant’s lead independent director, Kenneth Frazier at this month’s shareholder meeting. During that engagement, both Exxon officials will be up for re-election.
In a bid to remove both parties successfully, Environmental group Sierra Club and other activists have bombarded BlackRock Inc. and Vanguard Group, two of ExxonMobil’s biggest shareholders, with thousands of calls and emails urging that they vote against Woods and Frazier. The two money management firms hold more than 13 percent of Exxon shares combined.
The move to oust Woods and Frazier is seen as strategic, as it would boost an ongoing fight led by climate activists since last year to have four fresh faces sit on ExxonMobil’s Executive Board.
Kaieteur News would have reported on this, while noting that Exxon is battling activist hedge fund, Engine Number One, over four seats on the 12-member board. The fund has criticised Exxon’s poor returns from heavy spending on fossil fuels and lack of a clear vision on transitioning to cleaner fuels. Engine One also has the backing of some large pension funds in California and New York regarding the need to have the interests of the oil giant realigned.
While BlackRock and Vanguard have declined to comment on their stance, both have signed the Net Zero Asset Managers Initiative, vowing to press portfolio companies to achieve net zero emissions by 2050 or sooner. Nasdaq also stated that an Exxon spokesperson did not respond to a request for comment on the email campaign.
Be that as it may, Lisa Lindsley, Director of Investor Engagement at Majority Action, one of the groups pressuring the Exxon shareholders, was keen to note that the leadership of the board of directors should be voted off if the company fails to embrace the Paris Accord’s goal on limiting the rise in the global temperature.
As ExxonMobil continues to face an unprecedented rebellion from climate activists and other likeminded supporters, the American explorer has made several efforts to expand its board, and even pledged to increase spending on lower-carbon initiatives, and lower the intensity of its oilfield greenhouse gas emissions. In a Reuters’ interview last week, CEO Woods said big shareholders have been receptive to Exxon’s climate efforts. Shareholders “are very encouraged by the fact that we’re taking a leadership role and helping to provide solutions to meet some of these broader ambitions,” Woods said.
But his comments in the media have done little to nothing to subdue the growing tide of concerns among activists. According to the Australian-based Sunrise Project, which is a part of a network of climate-focused groups that have zeroed in on the large money managers, supporters from various groups have sent at least 10,000 emails to both BlackRock and Vanguard and made hundreds of phone calls to BlackRock’s offices, asking them to vote against Woods and Frazier.
While they are thankful for the written commitments made by BlackRock and Vanguard on climate change, the activists fighting to reverse the devastating effects of this global phenomenon, insist that the time has long past for this type of approach. They insist that both shareholders must now go beyond their nicely worded letters and press releases and take firm action against ExxonMobil.