Persuading Wall Street

The Wall Street Journal describes a hedge-fund manager’s decision to convince Wall Street investors to improve Exxon’s board oversight. A former coal mine owner, Christopher James spent $250 of personal funds to rally support from other fund managers and win three board seats to encourage environmental, social, and governance (ESG) changes at the company.

Exxon was vulnerable, and the timing was right. James created an organization, Engine, which wrote an open letter to Exxon and shareholders. The demands include “putting the Company on a path to net zero total emissions by 2050.”

James says his inspiration came from a conversation with his children:

The hedge-fund manager’s school-aged sons asked him how he could consider himself an environmentalist if he invested in energy companies, and Mr. James said he struggled with his explanation.

“As I was listening to myself talk, I thought `I am really splitting hairs on this.’” One of his sons, he said, “had this look on his face where his forehead wrinkled. He didn’t buy it.”

James also said, “I can get rid of this compartmentalization. I could realign my values with an investment thesis.”

This story is a great example of integrity and courage character dimensions. James is living his values and took action despite risks.