June 2, 2022 | Editor: Martin Wennerström
Exxon to face Massachusetts climate change lawsuit
Exxon Mobil will face a lawsuit over having allegedly misled investors and consumers about the climate change risks posed by its business, following a rejection of its motion for dismissal on anti-SLAPP grounds. The suit, filed in 2019 by the Massachusetts Attorney General, alleges that Exxon deceived consumers by advertising fossil fuel products as “clean” and “beneficial to the environment.” Meanwhile, contrary to the board’s recommendation, Exxon’s May 25 AGM narrowly approved a resolution requesting that the company assess how its finances would be impacted by a transition to net zero emissions. However, only 28% of votes backed a resolution requesting that the company set greenhouse gas reduction targets, while only 10% supported a resolution requesting a report on low carbon business planning. At the 2021 AGM, activist investor Engine No. 1 managed to win three Exxon board seats on a clean energy platform.
Toshiba Corp overhauls board as investors eye bids
Air France KLM launches EUR 2.26 billion rights issue
FCA to boost LSE attractiveness through rule simplification
Governance in Brief – May 25, 2023
Activist investor pushes for leadership and strategy changes at NRG Energy Activist investor Elliott Investment Management has disclosed a 13% stake in the US-based NRG Energy and called for leadership and operational changes at the company to remedy its “meaningful underperformance.” The investor urged NRG to add independent directors with experience in the power and energy sector to its board, noting that it has already identified five executives to guide the operational and strategic changes.
Governance in Brief – May 19, 2023
EU court sides with Ryanair on Lufthansa’s 2020 bailout. The EU General Court, the second-highest court in the EU, has annulled the European Commission’s decision on the approval of state bailout for Deutsche Lufthansa prompted by the 2020 pandemic. The judgment found the EC erroneously considered that Lufthansa could not obtain financing on the markets and failed to ask for the implementation of an incentive mechanism for the airline to buy back the German Government’s stake.
Governance in Brief – May 11, 2023
JPMorgan Chase takes over failed First Republic Bank JPMorgan Chase has acquired the assets and deposits of First Republic Bank after California authorities seized and auctioned the troubled lender. The Federal Deposit Insurance Corporation (“FDIC”), an independent governmental agency established to maintain financial stability through the insurance of banks’ deposits, took possession of First Republic Bank after the lender suffered a severe liquidity crisis following the failure of SVB and Signature Bank earlier in March.
Governance in Brief – May 4, 2023
TotalEnergies sells Canadian oil sands operations to Suncor TotalEnergies has announced that it will sell its Canadian operations to Suncor Energy, in an agreement worth up to CAD 6.1 billion (USD 4.47 billion). The French energy giant had originally planned to exit Canadian oil sands by spinning off TotalEnergies EP Canada, but later agreed to instead sell the operations after having received unsolicited offers from both Suncor and other parties.