A new investment firm is taking aim at US energy giant Exxon Mobil Corp, pressing it to reinvent itself by focusing more on clean energy to improve its financial performance.
Reuters said on Monday that Engine No. 1 is being supported by pension fund California State Teachers’ Retirement System (CalSTRS) as it pushes the energy company, valued at US$176 billion, to spend its cash better, preserve its dividend, and revamp its board.
“The industry and the world it operates in are changing and … Exxon Mobil must change as well,” Engine No. 1 wrote to Exxon’s board, adding “given the company’s long-running underperformance and the challenges it faces, it is time for shareholders to weigh in.”