Exxon Faces Proposal Highlighting Risks from Single-Use Plastics at Annual Meeting
As You Sow brings plastic pollution to the forefront as investor concern grows about Exxon’s response
FOR IMMEDIATE RELEASE
MEDIA CONTACT: Sophia Wilson, [email protected], (341) 600-1832
BERKELEY, CALIFORNIA—MAY 28, 2024—Tomorrow, ExxonMobil’s (NYSE: XOM) shareholders will vote on a proposal filed by United Church Funds and represented by As You Sow calling on Exxon to report how a significant reduction in virgin plastic demand would impact the company’s financial position and the assumptions underlying its financial statements. Exxon tried and failed to block the proposal at the Securities and Exchange Commission (SEC) in March of this year, one of many confrontational actions by Exxon targeting shareholders this proxy season.
Exxon has been cited as the world’s largest producer of resins bound for single-use plastics, generating an estimated 11.5 million metric tons of single-use plastic resins that result in approximately 6 million metric tons of plastic waste annually—equivalent to the weight of 300,000 garbage trucks. Exxon is the second-largest petrochemical company in the world, with plans to grow its virgin polymer capacity by 4 million metric tons by 2025.
Expanded plastic production is planned despite the intensifying plastic pollution crisis and the global response in which countries and major brands are transitioning away from single-use plastics, lowering global demand for Exxon’s products. BP has already recognized how reduced demand for single-use plastics could impact the oil industry, finding that a global ban by 2040 could reduce oil demand growth by 60%.
“Shareholders see two conflicting scenarios: a global reckoning to reduce demand for single-use plastics versus Exxon preparing to expand production,” said Conrad MacKerron, Senior Vice President of shareholder representative As You Sow. “Exxon has yet to report to its shareholders on whether and how reduced demand for plastics could lead to stranded production assets and how the company is preparing for a future in which our dependence on single-use plastics is reduced.”
Exxon’s board and CEO also face a significant no-confidence vote this year following its lawsuit against Arjuna Capital in response to its climate disclosure proposal. In a May 20 open letter, the California Public Employee’s Retirement System (CalPERS) announced that it will vote against all 12 of Exxon’s director nominees and its CEO and Chairman, Darren Woods, because of the company’s “devastating” lawsuit against its own shareholders. Majority Action also launched a “Vote No” campaign in early May against Exxon’s board and CEO.
“The board of every public company reports to its shareholders. This is shareholder democracy. Exxon seems to have forgotten the basics of capitalism in bringing this lawsuit against its shareholders. It doesn’t get to pick and choose which shareholders it deems are worthy to file a proposal,” said Andrew Behar, CEO of As You Sow. “Similarly, Exxon called out As You Sow an unprecedented 13 times in its proxy statement challenging our right to ask the company about material risks that impact every investor. In doing so, Exxon disregards the most basic property rights of every share of stock they issue. Those rights give shareholders the power to decide who is on the board, to file a shareholder proposal, and to vote. By fighting rather than responding to proposals, the current board is doing a disservice to itself and its shareholders who are, quite literally, invested in Exxon’s long-term success.”
“Exxon’s management and board should consider shareholder proposals on their merits, rather than attacking shareholders and questioning their motives in bringing climate-related proposals,” said Danielle Fugere, President and Chief Counsel of As You Sow. “Shareholder proposals are a crucial tool for shareholders to raise issues of concern -- such as how Exxon plans to reduce emissions while producing energy now and into the future.”
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As You Sow is the nation’s leading shareholder representative, with a 30-year track record promoting environmental and social corporate responsibility and advancing values-aligned investing. Its issue areas include climate change, ocean plastics, toxins in the food system, the Rights of Nature, racial justice, and workplace diversity. Click here to view As You Sow’s shareholder resolution tracker.