05:46 AM EDT, 05/13/2024 (MT Newswires) -- (Adds Exxon Mobil comment in fifth paragraph and Calpers comment in second and third paragraphs, more detail throughout)

Exxon Mobil ( XOM ) Chief Executive Darren Woods may not have the vote of the California Public Employees' Retirement System supporting his reelection to the company's board of directors after the energy company recently filed suit against two climate activist investors.

In a statement to MT Newswires, a Calpers spokesman said Friday that while managers of the pension fund have not made a final decision whether to support Woods at the company's May 29 annual meeting, they were concerned by the Exxon Mobil ( XOM ) lawsuit seeking to sideline a shareholder resolution introduced by US investment advisors Arjuna Capital and a Dutch investor group, Follow This, pushing the energy company to do more to cut greenhouse gas emissions.

"We remain concerned about any action that could undermine shareholders' basic rights," the Calpers spokesman said, adding the pension fund is encouraging "other investors to join us in voicing their opposition to this lawsuit, which attempts to silence investors."

Arjuna and Follow This withdrew their resolution but Exxon has continued with the suit contending they are pursuing a "Goldilocks Trojan Horse" strategy intended to campaign for change through shareholder proposals "calculated to diminish the company's existing business."

"We strongly support the right of investors to submit proposals within the SEC rules that are intended to grow value," Exxon Mobil ( XOM ) told MT Newswires in an emailed statement. "The goal of our lawsuit is simple - we seek clarity on the SEC rules to stop the continued abuse of the proposal process."

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