Big Oil is having its moment with ESG or, rather, against it.  

Last month, ExxonMobil received approval from a federal judge to go ahead with a lawsuit that seeks to block activist shareholders from submitting climate-focused proposals.

The oil major originally filed the suit against investors Arjuna Capital and Follow This in January over the pair’s attempt to have Exxon ramp up its scope 1 and scope 2 emissions reduction efforts and set scope 3 targets similar to its peers. Though the investors withdrew their proposal shortly after, they continued to face legal action from the Texas-based energy provider. Exxon, which filed the suit with Texas’ Northern District Court, asked the court to still rule on the case, contending that a ruling would prevent shareholders from presenting similar ESG-aligned proposals in the future.

In his May 23 ruling, Judge Mark Pittman gave Exxon the green light to proceed with its lawsuit, but dismissed the Netherlands-based Follow This as it fell outside the court’s jurisdiction. Arjuna Capital continues to be the target of litigation from Exxon. In another effort to end the lawsuit, Arjuna Capital Managing Partner recently vowed the investor would not submit any more climate proposals to the oil company.

Exxon’s suit has received much scrutiny from company investors, many of whom pushed fellow investors to vote against its CEO and slate of board directors during its May 29 annual meeting.  At issue is the company’s decision to legally pursue the activist shareholders and bypass the Securities and Exchange Commission’s no-action process. Despite this opposition, the oil major has not given any indication of backing down.

Catch up on our coverage of Exxon’s ongoing battle against its shareholders and ESG proposals more broadly here.