Exxon said in a court filing on Thursday that Follow This and activist investment firm Arjuna Capital were withdrawing the resolution they wanted to bring to the company’s shareholder meeting in May.
“Given Exxon’s preference to fight a battle in court rather than allow shareholders the freedom of a vote at its annual meeting, we decided to withdraw the climate proposal,” Follow This founder Mark van Baal said in a statement.
“Now that we have withdrawn, the company has no reason to continue the lawsuit,” he added.
Exxon filed the complaint on Jan. 21, the first time it sought to exclude a shareholder proposal through court. The case was assigned to a judge with a track record of ruling in favor of conservative causes.
The investor proposal called for Exxon to set targets to reduce emissions produced by the burning of its products, known as Scope 3 emissions. Exxon is the only one of the five Western oil majors which does not have such targets.
Exxon has said the groups were driven by an “extreme agenda” and that their proposals do not serve investors’ interests or promote long-term shareholder value.
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