Climate activist investor Arjuna Capital withdraws ExxonMobil shareholder proposal with promises to “back off”

(Bloomberg) – The Exxon Mobil Corp. investor that the oil giant is suing for its climate-related shareholder proposal is promising not to file similar motions in the future in a bid to get the legal action dropped.

While Arjuna Capital had already withdrawn the shareholder proposal to accelerate greenhouse-gas emissions cuts that was at issue in the lawsuit, the firm went further in a letter that was sent to Exxon and filed with a Texas court, saying it “unconditionally and irrevocably” promised not to submit any more proposals related to emissions or climate change to Exxon shareholders.

Arjuna said it expects Exxon will now withdraw its lawsuit.

Exxon is reviewing Arjuna’s letter, spokeswoman Emily Mir said in an emailed statement that didn’t commit to withdrawing or continuing the lawsuit. The oil producer’s lawsuit is intended to gain clarity on the U.S. Securities and Exchange Commission’s proxy rules and stop the abuse of the shareholder process, Mir said.