Capitalisn't The Engine No. 1 David vs Exxon Goliath With Chris James
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Jul 15, 2021 
Chris James, founder of Engine No. 1, shares his groundbreaking journey to challenge ExxonMobil's board through activist investing. He dives into the growing tension between shareholder interests and long-term societal values, emphasizing a 'total value' approach that aligns climate concerns with sustainable profits. James discusses the pitfalls of short-term market pressures and the pivotal role of index funds in fostering responsible capitalism. The conversation also highlights board governance issues and the broader implications of their successful proxy fight against one of the world’s largest energy companies.
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Reframe Climate As Economic Risk
- Engine No. 1 framed Exxon's climate failure as an economic, not ideological, problem to win broad shareholder support.
- They used a 'total value' framework and targeted governance gaps to persuade index funds and advisors.
Use Multiple Investment Paths
- Build multiple strategies (concentrated funds, ETFs, active ownership, private deals) around a single investment thesis to amplify impact.
- Use data-driven frameworks to tie societal impacts to long-term value creation.
Short-Term Pain, Long-Term Value
- Short-term trade-offs often precede long-term gains when firms pivot away from harmful activities.
- Early movers in low-carbon strategies (e.g., Orsted) reaped long-term benefits compared with laggards like Exxon.