The Daily The Sunday Read: ‘The Little Hedge Fund Taking Down Big Oil’
Jul 25, 2021
An activist investment firm has taken on ExxonMobil in a bold bid to promote climate accountability. The story unfolds with a dramatic proxy battle, where emotional stakes run high as shareholders demand urgent changes. Tensions escalate during a contentious shareholder meeting, spotlighting the tug-of-war between traditional fossil fuel practices and the call for sustainability. The evolving landscape of corporate activism is explored, revealing the challenges activists face in pushing major companies towards responsible environmental practices.
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Engine No. 1 vs. ExxonMobil
- Engine No. 1, a small investment firm, challenged ExxonMobil by nominating four candidates to the board.
- They aimed to push the oil giant towards addressing climate change.
Activist Investing History
- Activist investors can pressure companies to change, similar to a shareholder insurrection.
- This tactic has been used since the 17th century but became more aggressive in the 1980s.
Dow Chemical and Napalm
- In 1969, a civil rights organization pressured Dow Chemical to stop selling napalm.
- Dow ceased production, demonstrating the potential impact of shareholder activism.