US SEC will not pursue charges against climate group, warns of disclosure obligations
XOM•The SEC said it investigated Climate Action 100+ over actions connected to ExxonMobil’s May 2021 shareholder meeting but will not pursue charges. It warned that large shareholders need to understand their regulatory obligations ahead of the 2027 proxy season.
1. SEC ends investigation
The US Securities and Exchange Commission said it investigated Climate Action 100+ in connection with ExxonMobil’s May 2021 shareholder meeting and chose not to pursue charges against the group. The SEC said it had concerns about the group’s actions and warned that large shareholders need to understand their regulatory obligations ahead of the 2027 proxy season.
2. Exxon meeting context
The 2021 meeting became a flashpoint in debate over whether investors and companies should consider factors such as climate change in decision-making. BlackRock, Vanguard and State Street backed some dissident directors put forward by activist hedge fund Engine No. 1, which argued Exxon needed to focus on the energy transition. Republican politicians, often from energy-producing states, have since criticized asset managers’ environmental and social stances, saying their attention could violate antitrust laws.
