02:39 PM EDT, 05/20/2024 (MT Newswires) -- The California Public Employees Retirement System said Monday it will vote against the reelection of Exxon Mobil's ( XOM ) board, including after the oil giant recently sued two climate activist investors.

In a letter to its members on its website, CalPERS urged other Exxon shareholders to make the same move at the company's May 29 annual meeting "to send a message that our voices will not be silenced."

CalPERS has expressed concern over Exxon's lawsuit seeking to sideline a shareholder resolution pushing the company to do more to cut greenhouse gas emissions. The resolution was introduced by US investment advisors Arjuna Capital and Dutch investor group Follow This.

CalPERS said "shareholder rights are under threat from a lawsuit...designed to punish two small groups that dared to speak truth to power."

"If successful, the legal action could diminish the role-and the rights-of every investor in improving a company's bottom line," CalPERS said, adding it had urged Exxon to drop the lawsuit that it described as "a reckless and destructive effort."

Exxon hit back at CalPERS in a statement to MT Newswires, saying its vote against the entire board "appears to be an attempt to 'chill' shareholder voices."

"We've engaged with CalPERS on this matter and do not understand how they can make such a poor fiduciary decision to vote against a board that has overseen the creation of industry-leading shareholder value," the company added.

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