ExxonMobil faces opposition from CalPERS after 'devastating' anti-ESG activist suit

Core Viewpoint - ExxonMobil is facing significant backlash from CalPERS, a major pension fund, due to its aggressive legal actions against activist investors aiming to push for environmental reforms [1][2]. Group 1: Activist Investor Conflict - ExxonMobil's legal battle against Arjuna Capital and Follow This has led CalPERS to oppose all of Exxon's director nominees, including CEO Darren Woods, at the upcoming shareholder meeting [1]. - The activists had proposed a plan to reduce direct emissions and set targets for lowering emissions at suppliers and customers, which Exxon countered with a lawsuit that led to the withdrawal of the proposal [1][2]. - CalPERS criticized Exxon's lawsuit as "reckless," arguing it threatens shareholder activism and could set a precedent for silencing voices on various corporate governance issues [2]. Group 2: Historical Context - ExxonMobil has previously faced activist investors, notably in 2021 when Engine No. 1 successfully gained three board seats with a mere 0.02% stake, contrasting with CalPERS' current 0.2% ownership [3]. - CalPERS, which had supported the election of certain directors, is now opposing them due to their involvement in the lawsuit against the activists [3]. - The letter from CalPERS expressed hope that ExxonMobil's directors would reconsider their legal strategy, describing it as more akin to "schoolyard bullying" than effective corporate leadership [3].