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U.S. Republican states support Exxon in investor activism row

Officials from 19 Republican U.S. states urged significant money managers on Thursday not to vote against ExxonMobil's directors at a conference next week where some shareholders prepare to voice their opposition to a lawsuit introduced by the oil company versus environment activists.

The group, including Florida Chief Financial Officer Jimmy Patronis and Louisiana State Treasurer John Fleming, stated in a. letter to business consisting of BlackRock, Goldman Sachs. and JPMorgan that Exxon's board deserve our. thanks and assistance ... for looking for to control activist. investors.

Exxon's pursuit of the case against Arjuna Capital and. Follow This over a proposition the company push for stricter. climate targets, even after the financier groups withdrew it, has. split viewpoint among investors and state authorities.

A group of Democratic authorities asked a few of the same possession. supervisors to vote against the board previously today, saying the. suit would undermine shareholder rights. Norway's $1.6 trillion. sovereign wealth fund said on Friday it would vote versus the. reappointment of Exxon director Joseph Hooley.

Not all signatories to Thursday's letter have direct control. over ballot at business where state pensions are invested, but. their taking a position marks a change from a previous. investor battle at Exxon, in which Democratic state pension. funds sided with a climate-focused hedge fund.

They did not clearly call for a vote in favour of the. board at the May 29 meeting.

These activists have been flooding business proxy. statements with politically encouraged propositions very finely veiled as. company risk mitigation procedures, the letter stated.

BlackRock did not react to an ask for remark. Goldman. Sachs and JPMorgan decreased to comment. Exxon, Arjuna Capital. and Follow This did not immediately respond to ask for. comment.

The Republican officials took specific concern with Arjuna. and Follow This asking Exxon to minimize greenhouse gas emissions. from its suppliers and end-users, known as Scope 3.

The only way that Exxon can eliminate Scope 3 emissions is. to close down its operations, cap its wells, shutter its windows,. and fire its staff members, the letter said.