When upstart activist hedge fund Engine No. 1 secured three seats on the board of ExxonMobil, in June, it was a high-profile repudiation of the way the country’s largest oil company has long conducted business: with a laser focus on returns and a blind eye to its impact on the world at large. The fund vowed to push ExxonMobil to develop a plan to address climate change and reduce its carbon footprint. Exxon’s responsibility as a business would no longer be only to its shareholders, the boardroom showdown signaled, but also to the public and the planet.
To pull off this coup, however, Engine No. 1 first needed to woo other, bigger shareholders. Launched in December 2020 with a goal of getting companies to prioritize long-term value, the fund found a perfect first target in Exxon. The oil company had ignored the kinds of renewable investments that would set it up for future success, and its stock had been plummeting. Though Engine No. 1 held just 0.02% of the company, it persuaded some of Exxon’s largest shareholders, including BlackRock and the California State Teachers’ Retirement System, that the company’s myopia was a liability. “I think the issue you’ve seen at Exxon, really for years, is an overly short-term focus and a real disregard for the way the industry has changed, where the world is changing,” Charlie Penner, who leads campaigns at Engine No. 1, told Fast Company.
This story is from the September 2021 edition of Fast Company.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the September 2021 edition of Fast Company.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
Orange Crush
Y Combinator was designed to be a supercondensed version of Silicon Valley. Now that it's at full potency, can it maintain its outsider pose while being the ultimate insiders' network?
10 TREND
FROM THE MOST INNOVATIVE COMPANIES | PLUS 606 HONOREES FROM ADVERTISING TO VIDEO
THE WORLD'S 50 MOST INNOVATIVE COMPANIES
THE 1920S, WATER WENT INTO A GENERATOR, AND DC POWER CAME OUT. NOW ELECTRONS GO INTO A GENERATOR, AND INTELLIGENCE COMES OUT.\"
Reimagining the ways we work and meet
AS BUSINESS LEADERS RETHINK THEIR REAL ESTATE FOOTPRINT, THEY'RE EMBRACING SMALLER, HIGH-QUALITY, AMENITY-RICH SPACES THAT ARE MORE FOCUSED ON HUMAN CONNECTION.” IN OTHER WORDS, CONVENE.
Hollywood
AI is going to transform Hollywood But it won't be the horror story everyone's afraid of.
Chick-Fil-A's New Testament
Boycotted for years by liberals - and now by conservatives, too - a christian-driven brand is trying to walk the narrow path toward growth. What happens next could be enlightening for businesses everywhere.
The Office You Want
Business leaders want workers back. Workers are loath to resume their commutes. We asked five leading design firms to create plans that might make leaving home seem worthwhile.
Fan With a Plan
Fanatics CEO Michael Rubin parlayed a ski shop in suburban Philly into a $31 billion sports apparel juggernaut. Now, he's adding trading cards, gambling, live events, and more.
The Helpful Hardware Man
Marques Brownlee has rewired the way people shop for gadgets-and how companies sell them. Inside the humble factory with the power to shape the $1 trillion consumer electronics industry.
PIZZA, ROBOTS, and MONEY
THE ZESTY TALE OF ONE OF THE BIGGEST FLOPS IN SILICON VALLEY HISTORY