Author of original article: National Public Radio 

Original article title: “ExxonMobil is suing investors who want faster climate action” by Michael Copley

In Michael Copley’s article, he reports that in response to shareholders filing lawsuits against ExxonMobil and pushing the company to further reduce its effects on global warming, ExxonMobil has sued investors back. ExxonMobil has argued that investors are misusing the shareholder proposal system, as they continue to submit the same proposals year after year. As shareholders trying to make an impact on the company, investment groups like Arjuna Capital and Follow Through are trying to prompt the company to take action by limiting the emissions customers release when burning fossil fuels. ExxonMobil’s intent of suing investor groups who make repetitive proposals is meant to limit shareholders’ power in shaping corporate policies. Many companies like ExxonMobil claim to reduce their carbon footprint, however, shareholders are trying to hold them accountable and ensure companies are doing what they say. The company’s lawsuit against investors advocating to shape corporate policies could have worldwide implications on how investors hold companies accountable in the future. 

One prevalent concept is political risk assessment, as ExxonMobil must evaluate all potential risks in operating a natural gas company, considering how environmental laws and shareholder rights impact the successful operation of the company. This topic connects with concepts prevalent in chapter three of International Business and pertains to the many political risks present when conducting a business. Ultimately, the connection between corporate companies and activist investors underscores the importance of corporate accountability and transparency within a company. The result of ExxonMobil as well as investors’ litigations on climate transparency can encourage other companies to forgo activist investors’ proposals and may decelerate the mitigation of fossil fuels if ExxonMobil wins. On the contrary, if the investors are successful, it may place more pressure on companies to take greater steps to reduce their impact on climate change.

The article is so important as it brings attention to many large corporations that may not meet their target to reduce emissions. I believe that the lawsuit files have highlighted how shareholders holding companies responsible is truly essential in alleviating the effects of global warming. The impact of the case could influence how dealing with climate change is handled in the future and how shareholders’ proposals are dealt with. The article is meant to draw in the public to understand the company’s role in climate change and corporate responsibility. Investors, companies, and environmental activists are also watching the lawsuit between ExxonMobil and its shareholders, and may be affected based on the outcome of the case.