Exxon Takes Legal Action Against California Over Recycling Criticism
- 07-Jan-2025 12:10 PM
- Journalist: Joseph Dennie
ExxonMobil Corporation (XOM.N) has filed a lawsuit against California Attorney General Rob Bonta and several environmental groups, accusing them of defaming and disparaging the company's advanced plastics recycling initiatives. This legal action, filed in federal court in Texas, marks a significant escalation in Exxon's ongoing battle against environmental critics who hold the company accountable for its role in climate change.
The lawsuit alleges that Bonta, along with the environmental groups, have made false and misleading statements about Exxon's advanced recycling technology, which uses heat to break down difficult-to-recycle plastics into reusable materials at a molecular level. Exxon claims that these statements, including those made by a law firm with ties to a competitor in the low-carbon solutions sector, are intended to undermine the company's efforts in this area.
California's Department of Justice maintains that Exxon is attempting to deflect attention from its own wrongdoings. Bonta previously sued Exxon, accusing the company of decades of deception regarding the limitations of recycling and its role in the plastic pollution crisis.
This lawsuit comes amidst Exxon's continued investment in its advanced recycling technology, with a recent announcement of a $200 million expansion plan for its recycling capabilities in Texas.
This is not the first time Exxon has clashed with environmentalists and activist investors. Last year, the company sued activist investors who filed a shareholder proposal on climate change, even after the proposal was withdrawn. This action raised concerns about Exxon attempting to silence shareholder debate on environmental issues. A U.S. judge ultimately dismissed that lawsuit in June.
While Exxon is embroiled in legal battles over its environmental practices, the company is also divesting from California's oil and gas sector while criticizing the state's energy regulations.
The lawsuit against Bonta and the environmental groups is likely to be a protracted legal battle. The outcome will have implications for Exxon's reputation and its ability to advance its recycling technology. It will also be watched closely by environmental advocates and those concerned about corporate accountability on climate change issues.