After shaking up Exxon's board, Engine No. 1 widens sights
ABC News
Few people had heard of Engine No. 1 until this year, when it shocked corporate America by pushing Exxon Mobil to revamp its board of directors, in part to focus more on clean energy
NEW YORK -- Few had heard of Engine No. 1 until it shocked corporate America this year by pushing Exxon Mobil to revamp its board of directors, in part to focus more on clean energy. Now it’s bringing its active-ownership approach to the world of stock index funds, which sit at the heart of most investors’ retirement accounts.
Yasmin Dahya Bilger is head of exchange-traded funds at Engine No. 1, whose ETF began trading in June under the ticker symbol “VOTE.” It owns 500 of the largest U.S. stocks, from Apple to Zillow, and says it will hold them accountable by engaging with their executives and voting at shareholder meetings.
Many stock funds say they do the same thing, of course, and some charge even lower fees than Engine No. 1’s. Bilger talked about how her fund is different and how more investors are choosing to take environmental, social and governance issues into account in hopes of the best long-term returns. This conversation has been edited for length and for clarity.
Q: Is Exxon the template for what Engine No. 1 will try to do with other companies? Shake up the board to get change going?
