The future of Big Oil could look very different following a critical shareholder meeting in the United States and a legal decision in Europe.What’s happening: On Wednesday, ExxonMobil (XOM) will face off against an activist investor looking to overhaul its strategy on sustainability. Meanwhile, a Dutch court is due to rule on a landmark case against Royal Dutch Shell (RDSA) as activists try to compel the company to move faster to cut emissions.That could make for a pivotal day for the oil industry.
“We’ve finally reached the point where climate inaction can cost a board member their job,” Andrew Logan, senior director of oil and gas at Ceres, a sustainability nonprofit, recently tweeted.
Exxon is facing a climate rebellion it may be unable to put downEngine No. 1 holds just 0.02% of Exxon’s shares, but it poses a credible challenge to the company, which was once the most valuable in the world. Upset with Exxon’s financial performance and its foot-dragging on the climate, the hedge fund is seeking to oust four directors at the firm’s annual meeting.If successful, the campaign could pressure Exxon to dramatically shift its strategy by diversifying into renewable energy and pulling back on oil production