Environment

Engine No. 1 takes climate fight to other big oil companies after underdog win at Exxon

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A view of the ExxonMobil Baton Rouge Refinery in Baton Rouge, Louisiana, May 15, 2021.
Kathleen Flynn | Reuters

Activist firm Engine No. 1 after winning three board seats at Exxon is meeting with other oil companies in its climate change fight, a source familiar told CNBC’s David Faber.

The hedge fund has spoken with executives at several oil and gas corporations including Chevron, the source familiar told CNBC.

Engine No. 1 may not necessarily target Chevron in its next challenge, or target any company at all, according to the source.

Chevron confirmed the meeting with Engine No. 1 to CNBC.

“We have contingency plans to respond to many different types of events, including an activist investor,” Chevron said in a statement to CNBC’s Leslie Picker. “We engage regularly with shareholders in constructive two-way dialogue and look forward to discussing the next chapter of our lower carbon story with them later this month.”

The Wall Street Journal first reported the activist firm’s meeting with Chevron.

Engine No. 1 gained two board seats at Exxon’s annual shareholder meeting in May, and a third seat in June.

The upstart activist firm has been targeting Exxon since December 2020, pushing the company to reduce carbon emissions in the face of a changing climate.

Engine No. 1 also launched an exchange-traded fund in June to further its shareholder activism focused on environmental, social and governance issues.

—CNBC’s David Faber, Leslie Picker and Pippa Stevens contributed reporting.

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