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Engine No. 1

Engine No. 1 is an American investment firm founded in late 2020 by Christopher James, which focuses on building and actively stewarding companies positioned to benefit from structural economic shifts, including the reindustrialization of North America and transitions in energy production.^[1]^[2] The firm, seeded initially with approximately $250 million, emphasizes a "Total Value Framework" that evaluates corporate performance based on resource allocation to human capital, communities, customers, and environmental factors as drivers of long-term financial returns, rather than isolated financial metrics.^[3] Engine No. 1 attracted significant attention for its 2021 proxy contest at ExxonMobil, where it invested about $40 million for a 0.02% stake and successfully elected three independent directors—Gregory Goff, Kaisa Hietala, and Andy Karsner—despite limited direct voting power, largely due to support from major index fund managers holding substantial shares.^[4]^[5] The campaign argued for board renewal to better address evolving energy markets, leading ExxonMobil to outline plans for billions in low-carbon solution revenues over the subsequent decade.^[6] However, academic critiques have characterized the activism as theoretically and empirically deficient, noting the absence of detailed operational recommendations or evidence linking the board changes to verifiable performance improvements, with Exxon's post-campaign stock gains—yielding Engine No. 1 a reported 350% return—more plausibly attributable to rising oil prices than the intervention itself.^[7]^[8]^[9] Beyond ExxonMobil, the firm has pursued direct investments in sectors like AI-enabled data centers and low-carbon technologies, including a 2025 joint venture with Crusoe Energy Systems to develop powered infrastructure, while divesting its ETF business to TCW in 2023 to concentrate on core alternative asset management.^[10]^[11] These activities underscore Engine No. 1's strategy of leveraging operational expertise to target opportunities in decarbonization and industrial resurgence, though its influence remains tied to the broader dynamics of institutional voting and market cycles rather than proprietary insights alone.^[12]

Founding and Early History

Establishment and Christopher James

Engine No. 1 was established in December 2020 by Christopher James as an activist investment firm aimed at enhancing long-term shareholder value through targeted governance and operational reforms in underperforming public companies.^[13]^[14] James seeded the firm with approximately $250 million of his personal capital, enabling an initial focus on high-conviction positions rather than broad asset gathering.^[1]^[15] The firm began operations with a compact team drawn from experienced professionals in investment and activism, emphasizing deep sector expertise over scale.^[14] Christopher James, the founder and chief investment officer, brought more than three decades of experience in investing across transformative industries, including technology and natural resources.^[16] Earlier in his career, he worked as an analyst at several hedge funds before co-founding Andor Capital Management in 2001 and establishing Partner Fund Management in 2004, where he honed a strategy of concentrated bets on undervalued assets.^[14] He also founded resource-focused ventures such as White Oak Resources and served on the management committee at Pequot Capital Management, building a track record of identifying opportunities in sectors facing structural shifts.^[16] James launched Engine No. 1 to address perceived failures in corporate governance that hindered sustainable value creation, particularly in the context of broader economic challenges like the need for U.S. reindustrialization.^[16] Drawing from his philanthropic work, including as founding chairman of Tipping Point Community, he sought to align investment activism with enduring business improvements, rejecting short-term profit maximization in favor of strategies that incorporate operational resilience and societal impacts.^[14] This approach positioned the firm to engage shareholders in reforming boards and strategies at large-cap entities, prioritizing causal drivers of performance over superficial metrics.^[13]

Initial Mission and Capital Raising

Engine No. 1 was founded in December 2020 with a mission to reindustrialize the United States by building and investing in companies that harness innovation to drive economic transformation and long-term value creation.^[17] The firm prioritized active ownership strategies to enforce corporate accountability, focusing on improving strategic execution and governance in underperforming companies rather than imposing rigid ideological frameworks or purity tests on environmental, social, and governance (ESG) criteria.^[18] This approach drew on first-hand observations of legacy industries' stagnation, attributing persistent underperformance to internal failures in capital allocation, technological adaptation, and innovation rather than solely external market shifts.^[19] Christopher James, the firm's founder and a veteran investor with experience in transformative sectors, seeded Engine No. 1 with approximately $250 million in initial commitments drawn largely from his personal wealth.^[19] This capital base provided the resources to initiate shareholder activism campaigns, allowing the firm to challenge entrenched management despite acquiring only small equity positions—for instance, a 0.02% stake in ExxonMobil valued at around $40–50 million.^[20] Such modest holdings underscored the firm's reliance on persuasive engagement and empirical critiques of strategic shortcomings to influence outcomes, rather than leveraging significant ownership for control.^[19]

Investment Philosophy and Approach

Total Value Framework

Engine No. 1 introduced its Total Value Framework in a whitepaper published on September 13, 2021, as a proprietary methodology for evaluating corporate sustainability impacts by quantifying their direct financial implications in dollar terms.^[21] The framework integrates environmental, social, and governance (ESG) factors with financial, operational, and strategic data, using independent sources and science-based metrics—such as the social cost of carbon—to monetize externalities like emissions costs or supply chain risks, thereby linking stakeholder impacts to shareholder returns.^[22] Unlike composite ESG ratings, which often exhibit low inter-rater correlations below 0.6 and prioritize exclusionary screens, the approach avoids subjective rankings in favor of sector-specific materiality assessments inspired by standards like SASB, tracking impacts across full value chains.^[22] The framework critiques the historical evolution of ESG investing, which it describes as shifting from outcome-oriented analysis toward an emphasis on moral "purity over impact," resulting in metrics disconnected from verifiable financial performance.^[22] It advocates for a causal analysis of drivers such as regulatory changes, technological adaptation, and market preferences that demonstrably influence outcomes like revenue growth or return on capital, rather than symbolic compliance with external agendas.^[22] Applied to a dataset of approximately 700 S&P 500 companies from 2011 to 2021, the methodology segmented firms into quintiles based on net negative sustainability impacts; the highest-performing quintile (lowest impacts) generated returns outperforming the S&P 500 benchmark, while the lowest quintile underperformed, indicating no inherent tradeoff between impact mitigation and financial returns.^[3] In investment evaluation, the Total Value Framework prioritizes governance structures that enable innovation and operational resilience, monetizing how decisions on capital allocation or risk management translate to long-term enterprise value.^[22] It employs predictive modeling to forecast financial metrics, incorporating AI enhancements for scalability, and focuses on actionable improvements in metrics like net income or market capitalization rather than aggregate scores.^[22] This bottom-up, data-driven process aims to identify opportunities where addressing material risks enhances return on capital employed, distinguishing it from traditional ESG by grounding assessments in empirical causal linkages rather than ideological signaling.^[3]

Distinction from Traditional ESG Investing

Engine No. 1's Total Value Framework, introduced in September 2021, sets it apart from traditional ESG investing by rigorously tying environmental, social, and governance factors to quantifiable financial impacts rather than employing exclusionary screens or prioritizing normative ideals decoupled from economic causality.^[23]^[24] This data-driven methodology assesses how material sustainability practices—such as efficient resource use or governance enhancing operational resilience—directly influence cash flows, growth potential, and risk-adjusted returns, focusing on shareholder value creation over divestment from sectors with adaptation potential.^[3] Traditional ESG approaches, by contrast, often apply blanket exclusions of industries like fossil fuels based on emissions profiles or ethical judgments, which can overlook opportunities to reform incumbents through technological integration and efficiency gains.^[25] In eschewing exclusionary tactics, Engine No. 1 favors proactive engagement with underoptimized companies in capital-intensive sectors, aiming to unlock value by addressing material deficiencies that hinder competitiveness, such as outdated strategies amid energy transitions.^[26] This inclusive stance critiques traditional ESG for fostering "virtue-signaling" divestitures that shun "high-impact" firms, potentially ceding influence over essential infrastructure to less accountable actors while signaling alignment with transient social preferences.^[27] Historical performance data underscores these distinctions: ESG funds employing exclusionary screens underperformed broad indices in 2022, as limited exposure to surging energy stocks—amid supply disruptions and geopolitical tensions—resulted in returns trailing conventional benchmarks by several percentage points.^[28]^[29] Proponents assert ESG mitigates systemic risks like climate transitions, yet empirical critiques highlight how overemphasis on non-causal metrics, such as absolute emissions reductions untethered from productivity, distorts capital flows away from vital sectors, inflating costs and suppressing innovation in core economic engines.^[30] Engine No. 1's framework counters this by demanding evidence of value linkage, ensuring sustainability efforts bolster rather than undermine financial fundamentals.^[31]

Key Activist Engagements

ExxonMobil Proxy Contest

In March 2021, Engine No. 1, holding approximately 0.02% of ExxonMobil's shares after investing around $40 million, launched a proxy contest to nominate four independent directors to the company's board, arguing that ExxonMobil's longstanding strategy had led to chronic underperformance relative to peers and the broader market.^[32]^[33] The firm's campaign emphasized a need for disciplined capital allocation, technological innovation, and adaptation to evolving energy markets, including lower-carbon opportunities, rather than outright divestment from hydrocarbons.^[9] This approach contrasted with traditional environmental activism by prioritizing long-term shareholder value through operational efficiency and risk management, as ExxonMobil's return on capital employed had lagged behind competitors like Chevron for over a decade.^[34] The contest culminated at ExxonMobil's annual shareholder meeting on May 26, 2021, where preliminary results showed eight of the company's 12 director nominees elected alongside two from Engine No. 1, with votes for the remaining nominees too close to call.^[35] Updated tallies on June 2, 2021, confirmed Engine No. 1's victory in securing three board seats—held by Gregory Goff (former CEO of Andeavor), Kaisa Hietala (former executive vice president at Neste), and Andrew Karsner (former U.S. Department of Energy official)—out of its four nominees, despite the firm spending only about $12.5 million on the effort.^[36]^[37]^[4] Support from major index funds like Vanguard, BlackRock, and State Street, which control significant voting power, proved pivotal, reflecting institutional priorities on governance and performance amid energy sector transitions.^[33]^[38] Following the election, the new directors contributed to ExxonMobil's strategic recalibrations, including accelerated investments in carbon capture and storage technologies and a reallocation of capital toward higher-return projects, which the company attributed to enhanced board expertise.^[5] Engine No. 1 later exited its position in 2024, reporting a 350% return on investment, crediting the campaign's focus on value creation amid ExxonMobil's improved stock performance.^[9] However, ExxonMobil maintained its core emphasis on oil and gas production, resisting broader shifts away from fossil fuels, as evidenced by subsequent expansions in Permian Basin output and limited low-emission commitments relative to activist expectations.^[39] This outcome highlighted tensions between performance-driven activism and demands for rapid decarbonization, with Engine No. 1's success underscoring the influence of minority stakes when aligned with institutional investors' economic rationales over ideological mandates.^[40]^[41]

Open Letter and Campaign Launch (2020–2021)

On December 7, 2020, Engine No. 1, which held a stake of approximately $40 million in ExxonMobil shares representing less than 0.02% ownership, sent a letter to the company's board of directors criticizing its long-term underperformance relative to peers and the broader market.^[42]^[43] The letter highlighted Exxon's low return on capital employed (ROCE), which had averaged below 5% over the prior decade compared to over 10% for integrated oil majors, and argued that the board lacked a credible strategy to adapt to evolving energy markets and protect shareholder value.^[44]^[45] Engine No. 1 proposed immediate board refreshment with independent directors possessing relevant energy sector experience, implementation of a disciplined capital allocation framework prioritizing high-return projects, and development of a forward-looking plan to enhance long-term value amid industry shifts.^[46]^[47] The communication, publicly released alongside a dedicated engagement website, marked Engine No. 1's initial public call for strategic overhaul, framing the intervention as driven by shareholder primacy rather than ideological mandates.^[45] ExxonMobil acknowledged receipt and stated it was reviewing the proposals, having already begun board refreshment efforts earlier that year by adding directors with energy transition expertise.^[43] In subsequent correspondence on December 18, 2020, Engine No. 1 requested ExxonMobil's director nominee questionnaire to advance potential candidacy discussions.^[46] Following Exxon's limited concessions, Engine No. 1 escalated by formally nominating four independent director candidates on January 27, 2021: Gregory J. Goff, former CEO of Andeavor with upstream and refining expertise; Kaleb M. Alsted, former Chief Strategy Officer at PG&E focused on utility transitions; Peter C. Ackerman, a hedge fund manager and strategist; and Heidi S. Messer, a technology executive with data analytics background.^[48] These nominees were selected for their track records in navigating energy sector disruptions, capital discipline, and value creation, aiming to inject fresh perspectives into a board perceived as stagnant.^[48] The nominations initiated the proxy solicitation campaign, which involved targeted outreach to institutional investors, issuance of public statements emphasizing Exxon's $20 billion-plus writedowns in 2020 and need for reallocating capital from low-return oil and gas expansions to higher-yield opportunities.^[49] By March 15, 2021, Engine No. 1 had filed preliminary proxy materials with the SEC, formally launching the contested solicitation ahead of ExxonMobil's annual meeting.^[46] The firm committed significant resources, ultimately spending around $30 million on the effort to build support among shareholders disillusioned with Exxon's returns amid volatile commodity prices and regulatory pressures.^[50]

Shareholder Reactions and Voting Outcomes

The 2021 ExxonMobil annual shareholder meeting on May 26 revealed strong dissatisfaction among investors with the company's board and strategy, as preliminary results indicated that two of Engine No. 1's four nominees—Gregory J. Goff and Kaisa Hietala—had secured election, with votes for the remaining nominees and several incumbents too close to call.^[35] ExxonMobil's management conceded the proxy contest's outcome on the same day, acknowledging the need for board refreshment amid the firm's decade-long underperformance relative to peers, which had returned only -1% annually compared to 5% for the S&P 500 energy index.^[51] Major institutional investors, including BlackRock, Vanguard, and State Street—which collectively held about 18% of shares—provided critical support, with BlackRock endorsing all four Engine No. 1 candidates due to their potential to enhance strategic planning and capital allocation.^[33] Updated counts released on June 2, 2021, confirmed the election of a third Engine No. 1 nominee, Alexander Karsner, resulting in three new independent directors joining the 12-member board alongside nine incumbents; the fourth nominee, Anders Runevad, did not prevail.^[36] ^[37] This outcome, achieved despite Engine No. 1's mere 0.02% ownership stake, marked a rare activist success driven by proxy advisory firms like ISS, which recommended votes for the dissident slate citing the board's insufficient industry expertise and Exxon's failure to adapt to market shifts.^[38] Shareholder reactions highlighted broader demands for accountability, with investors prioritizing directors experienced in upstream operations and energy transition strategies to address Exxon's stagnant returns and over-reliance on high-cost projects.^[52] While some observers framed the vote as a triumph for climate-focused activism, Engine No. 1's campaign emphasized total shareholder value through operational improvements rather than divestment from fossil fuels, resonating with investors frustrated by the incumbent board's resistance to change.^[7] ExxonMobil's initial opposition, which questioned the nominees' energy sector credentials, gave way to post-election commitments to evaluate strategic options, reflecting the market's validation of the activists' push for enhanced governance.^[53]

Board Changes and Strategic Shifts at ExxonMobil

Following the 2021 annual shareholder meeting on May 26, ExxonMobil announced preliminary voting results indicating that eight of its incumbent nominees and two from Engine No. 1's slate—Gregory J. Goff, former CEO of refining company Andeavor, and Kaisa Hietala, former executive vice president of renewables at Neste—had been elected to the 12-member board.^[35] Updated tallies released on June 2 confirmed a third Engine No. 1 nominee, Alexander A. Karsner, former U.S. Assistant Secretary of Energy for policy and clean energy advocate, had also secured a seat by a narrow margin, while the fourth nominee, Anders Runevad, former CEO of wind turbine maker Vestas, did not.^[36] ^[37] These additions represented the first outsider directors elected against management opposition in ExxonMobil's modern history, comprising 25% of the board and introducing expertise in refining, biofuels, and energy policy.^[33] In response to the board refresh, ExxonMobil outlined enhanced strategic priorities emphasizing capital discipline alongside expanded lower-emission investments, though its core oil and gas operations remained central. On November 9, 2021, the company committed to investing more than $15 billion over the subsequent six years in initiatives to lower greenhouse gas emissions, including carbon capture and hydrogen technologies.^[54] This was formalized in December 2021 corporate plans projecting doubled earnings potential through 2027 while allocating the $15 billion specifically to lower-emission projects like carbon capture, utilization, and storage (CCUS).^[55] By January 2022, ExxonMobil articulated an ambition for net-zero Scope 1 and 2 greenhouse gas emissions from operated assets by 2050, supported by roadmaps for methane reduction and electrification, though excluding Scope 3 emissions from end-use products.^[56] The new directors participated in these developments, with Engine No. 1 attributing the shifts to improved board oversight on long-term value creation amid energy market transitions.^[5] However, analyses have questioned the depth of transformation, noting Exxon's continued emphasis on high-return upstream oil and gas projects and arguing the changes largely accelerated pre-existing adaptations without a detailed pathway for broader decarbonization.^[42]

Other Shareholder Activism Efforts

In 2022, Engine No. 1 acquired a small stake in Coca-Cola Co. and initiated private engagements with the company's executives to address shortcomings in its plastics recycling operations. The firm advocated for stronger enforcement of Coca-Cola's existing commitments to recycle plastic bottles, proposing strategic partnerships with waste management providers such as Republic Services Inc., in which Engine No. 1 also held a position, to secure long-term supply contracts or direct investments that would enhance recycling infrastructure and operational reliability.^[57]^[58] These discussions emphasized practical improvements in supply chain efficiency and resource recovery, rather than new emissions reduction mandates, aligning with Engine No. 1's approach of identifying and unlocking value from underutilized operational capabilities.^[59] Such efforts reflect a pattern in Engine No. 1's activism beyond high-profile proxy contests, involving modest ownership positions—often held through passively managed exchange-traded funds—and data-informed critiques of inefficiencies in sectors like consumer goods and waste management. The firm has leveraged these stakes to push for targeted reforms, such as enhanced accountability in sustainability-linked operations, without pursuing board overhauls or rigid timelines like net-zero pledges.^[58] This contrasts with more confrontational tactics, focusing instead on collaborative dialogues to drive incremental value creation through better execution of disclosed strategies.^[60] Engine No. 1's broader shareholder voting activities, informed by its proxy guidelines, have supported a majority of proposals aimed at sustainable practices across portfolio holdings up to mid-2022, including measures for proxy access and long-term stakeholder value enhancement. However, these have primarily manifested as behind-the-scenes influence rather than public campaigns, with stakes typically below 1% to amplify impact via alliances with larger institutional investors.^[61]^[62] By 2023, the firm shifted emphasis toward direct investments in reindustrialization themes, reducing overt activism in public markets.^[63]

Investment Activities and Products

Launch and Sale of ETFs

In June 2021, Engine No. 1 launched its initial exchange-traded fund, the Engine No. 1 Transform 500 ETF (ticker: VOTE), seeded with $100 million in assets under management.^[64] The fund tracks the Morningstar US Large Cap Select Index, which selects and weights constituents from the S&P 500 based on proprietary scores for governance practices and innovation potential, rather than strict market capitalization.^[65] This approach incorporates active shareholder voting by the fund managers to influence portfolio companies on issues like board composition and long-term strategy, distinguishing it from passive index replication.^[66] Engine No. 1 expanded the platform with two additional thematic ETFs: the Transform Climate ETF (NETZ), focusing on companies advancing low-carbon transitions, and the Transform Supply Chain ETF (SUPP), targeting resilient global supply chain operators.^[11] These funds maintained higher expense ratios—approximately 0.75% for VOTE—compared to traditional S&P 500 index funds like SPY at 0.09%, reflecting the costs of quantitative scoring and stewardship activities.^[67] Performance since inception has been mixed; VOTE recorded an average monthly return of 1.07% through mid-2024, with periods of outperformance attributed to governance-driven stock selection, though it trailed broad market benchmarks in volatile environments.^[68] On October 16, 2023, Engine No. 1 completed the sale of its entire Transform ETF platform to TCW Investment Management Company, transferring approximately $600 million in assets across VOTE, NETZ, and SUPP.^[11] The transaction included the ETF portfolio management team joining TCW, which rebranded and continued operations under its oversight.^[69] Under TCW's management, the funds showed strong results in the second quarter of 2025; for instance, the TCW Transform Systems ETF (PWRD) delivered a net return of 29.53%, outperforming the S&P 500's 10.94% gain during that period.^[70]

Direct Investments and Portfolio Management

Engine No. 1's direct investment portfolio, as disclosed in SEC 13F filings for 2023 and 2024, totals approximately $55 million and centers on public equities in tech-enabled industrial and energy sectors critical to U.S. reindustrialization.^[71] Key holdings include Powell Industries (POWL), a provider of electrical power products for energy infrastructure; Vertiv Holdings (VRT), focused on data center cooling and power solutions; Eaton Corporation (ETN), specializing in electrical components and power management; and Hubbell Incorporated (HUBB), which manufactures electrical and electronic products for utilities and industrials.^[72] These selections target innovations that bolster manufacturing resilience and energy efficiency, such as modular power systems and infrastructure for high-demand applications like data centers.^[12] The firm's portfolio management strategy emphasizes active ownership to scale operations and drive structural improvements, including building new ventures from inception or infusing capital into early-stage entities to enhance supply chain durability and technological integration.^[73] This approach prioritizes investments where causal factors—such as domestic production capabilities and reduced dependency on foreign inputs—directly contribute to return on investment, rather than speculative trends.^[74] Engine No. 1 has executed at least five such investments across public and private markets, focusing on firms advancing energy and manufacturing innovations while mitigating exposure to high-volatility areas like pure-play renewables.^[75] By concentrating on verifiable opportunities in reindustrialization, the portfolio seeks to capitalize on a projected $3.5 trillion transformation in North American systems, including electrification and advanced manufacturing, through targeted capital deployment and operational guidance.^[74] This method contrasts with passive indexing by integrating hands-on strategies to address bottlenecks in industrial capacity and energy abundance.^[17]

Outcomes and Impact

Financial Performance Claims

Engine No. 1 reported realizing a 350% return on its initial investment in ExxonMobil stock, after selling its position in 2024—four years following the firm's 2020 entry into the company ahead of the 2021 proxy contest.^[9] The investment, initially valued at approximately $38–40 million, leveraged a small stake of about 0.02–0.1% to secure three board seats, demonstrating outsized influence relative to ownership size.^[32]^[4] Engine No. 1 attributed this outcome to strategic shifts at ExxonMobil, including enhanced capital discipline and low-carbon investments totaling $15 billion committed by late 2021.^[5] Firm-wide, Engine No. 1 expanded from its 2020 founding as a startup to managing over $400 million in assets under management by 2023, prior to the sale of its ETF business to TCW Group.^[1]^[76] The firm claimed its activism model generated returns exceeding peers, with ExxonMobil's post-engagement performance cited as delivering roughly 2.5 times the shareholder value of comparable energy majors, based on stock appreciation and dividend yields from 2021 onward.^[73] These metrics, however, invite scrutiny regarding correlation versus causation, as ExxonMobil's stock recovery—from below $40 per share in March 2020 to over $100 by 2023—aligned with a sector-wide rebound driven by post-COVID oil price surges from negative territory to above $70 per barrel by mid-2021.^[77] The S&P 500 Energy Sector Index achieved a 53.4% total return in 2021 alone, outpacing the broader market's 28.7%, amid global demand recovery and supply constraints rather than isolated governance changes.^[78] Empirical analysis of the proxy contest indicated short-term stock price effects from the campaign but no enduring uplift from electing Engine No. 1's nominees, suggesting broader market dynamics as a primary driver.^[79]

Broader Influence on Corporate Governance

Engine No. 1's 2021 proxy contest at ExxonMobil, achieved with a mere 0.02% stake, established a precedent for minority shareholders to secure board influence through targeted governance challenges, demonstrating that modest ownership could sway outcomes when aligned with institutional investors prioritizing long-term value over entrenched management.^[38]^[41] This success emboldened subsequent activist campaigns across sectors, including energy, by illustrating the efficacy of proxy fights focused on empirical critiques of strategic underperformance rather than overt ideological agendas, as Engine No. 1 emphasized Exxon's return shortfalls and adaptation gaps without framing the effort as a moral crusade against fossil fuels.^[80]^[81]^[82] In the oil sector, the contest prompted heightened investor scrutiny of major firms' resilience to energy market shifts, fostering demands for enhanced technological integration—such as advanced analytics and low-carbon innovations—to bolster competitiveness, yet it did not trigger widespread board overhauls or divestments from hydrocarbon assets.^[80] Oil majors like ExxonMobil continued prioritizing core upstream investments, with capital expenditures remaining heavily tilted toward oil and gas exploration and production, reflecting empirical persistence in demand-driven strategies amid limited evidence of systemic portfolio retreats.^[83]^[84] Supporters argue this model democratizes corporate oversight, enabling data-informed shareholder interventions to counteract board complacency and align governance with economic realities.^[33] Critics, however, contend it facilitates opportunistic interference by transient activists lacking substantial economic alignment or executable plans, potentially prioritizing publicity over sustainable reforms without sufficient "skin in the game" to endure operational risks.^[8]^[42]^[85]

Criticisms and Debates

Alleged Short-Termism and Lack of Roadmap

Critics have argued that Engine No. 1's proxy victory at ExxonMobil in May 2021 exemplified short-term activism without a substantive long-term strategy, as the fund provided no detailed roadmap for operational or financial improvements following the election of its nominees to the board.^[42] Bernard S. Sharfman, in his 2022 analysis, described this as an "illusion of success," noting that Engine No. 1 "failed in making any specific recommendations" for enhancing shareholder value or addressing emissions, leaving the outcome dependent on vague notions of increased board accountability rather than enforceable corrective mechanisms.^[8] This approach, detractors contend, prioritized immediate electoral wins and marketing for Engine No. 1's subsequent ETF launches over sustained governance reforms, potentially distracting management without yielding verifiable incremental changes.^[42] In the ExxonMobil case, the elected nominees—former government officials and energy executives including Gregory Goff and Kaleb Alsted—exerted limited post-election influence, with no evidence of implementing targeted initiatives beyond what market pressures already compelled.^[8] Engine No. 1 maintained that the board additions fostered accountability leading to strategic shifts, such as enhanced focus on lower-emission technologies, but Sharfman countered that such claims overlook Exxon's pre-existing adaptations, including a $10 billion reduction in capital expenditures and $3 billion in technology investments undertaken prior to the December 2020 campaign launch.^[42] For instance, ExxonMobil announced a 30% cut to its 2020 capital spending, bringing it to $21 billion, in response to plummeting oil prices and the COVID-19 downturn, actions that predated the proxy fight and aligned with broader industry cost-discipline efforts rather than activist-driven mandates.^[86] Critics thus question the causal impact of Engine No. 1's involvement, positing that reliance on amorphous market forces, without binding plans or metrics for nominees' performance, rendered the intervention more symbolic than transformative.^[8]

ESG Proxy and Energy Sector Implications

Engine No. 1's 2021 proxy contest at ExxonMobil, which secured three board seats, has been interpreted by proponents as a demonstration of value-oriented investing that enhanced board expertise without explicit ESG mandates, yet critics contend it functioned as a proxy for environmental agendas aimed at curtailing fossil fuel reliance.^[33]^[27] The firm emphasized its "Total Value Framework," which quantifies sustainability factors as material to long-term financial performance rather than ideological priorities, leading to Exxon's post-election commitment of $15 billion over six years to low-carbon solutions by November 2021.^[5] However, skeptics, including analyses from energy policy researchers, argue this masked a broader push to redirect capital from hydrocarbon exploration toward intermittent renewables, potentially exacerbating supply vulnerabilities in a world still dependent on dispatchable energy sources.^[87] Supporters highlight the nominees' credentials—such as experience in energy markets and renewables—as bolstering Exxon's strategic adaptability without mandating divestment from oil and gas, evidenced by the company's subsequent $60 billion acquisition of Pioneer Natural Resources in 2023 to expand Permian Basin production.^[88] In contrast, detractors assert that such interventions contribute to a chilling effect on upstream investments, correlating with a 35% decline in global proven oil reserves since the early 2010s amid rising demand, as ESG-driven capital allocation favors unproven technologies over reserve replacement.^[89] This shift, they claim, undermines U.S. energy independence by constraining domestic majors' ability to offset geopolitical risks, such as OPEC+ production decisions, through robust exploration budgets.^[90] Empirical patterns link intensified ESG shareholder activism to reduced capital expenditures in conventional energy, with U.S. integrated oil firms underinvesting in oil and gas by prioritizing transition narratives that overlook the intermittency of wind and solar, which supplied less than 15% of global electricity in 2023 despite subsidies.^[91] Proxy battles like Engine No. 1's set precedents for institutional investors to leverage voting power—often from index funds—toward emissions targets, fostering an environment where proven reserves growth lags depletion rates by over 500 billion barrels annually, heightening risks of future supply crunches and price spikes.^[92] While Engine No. 1 maintains its approach avoids such ideological pitfalls by tying sustainability to quantifiable value, the broader energy sector has witnessed accelerated capital flight from fossil fuels, correlating with heightened volatility in Brent crude prices post-2021.^[81]^[93]

Recent Developments (Post-2023)

Strategic Pivot to Reindustrialization

Following the October 16, 2023, sale of its Transform ETF platform—managing over $600 million in assets—to TCW Group, Engine No. 1 shifted its core strategy toward direct investments and company-building initiatives targeted at the reindustrialization of the United States.^[11]^[94] This refocus emphasized constructing and backing innovation-driven firms in sectors like advanced manufacturing and energy technologies, aiming to harness private capital for industrial revival amid supply chain vulnerabilities exposed by events such as the COVID-19 pandemic and geopolitical disruptions.^[17]^[74] The rationale centers on countering decades of deindustrialization through market-oriented investments that exploit U.S. structural advantages, including abundant energy resources, technological innovation, and proximity to North American trade partners like Mexico and Canada, rather than primary reliance on government subsidies.^[12]^[74] Engine No. 1 identifies a $3.5 trillion multi-decade opportunity in onshoring and nearshoring manufacturing, driven by corporate supply chain repatriation—evidenced by over 200 such announcements in U.S. firm presentations by late 2022—and bolstered by policy incentives like the CHIPS Act's $52.7 billion for semiconductors and the Inflation Reduction Act's potential $1.6 trillion in clean energy outlays, which the firm views as tailwinds for private-sector value creation.^[74] A March 2023 letter from Chief Investment Officer Chris James highlighted reindustrialization's "cascading benefits" for the U.S., including enhanced economic resilience and cleaner operations via localized production and energy efficiency, positioning investments to yield superior financial returns.^[95] Key initiatives include a 2025 joint development with Chevron and GE Vernova to deliver up to four gigawatts of scalable natural gas-fired power generation using 7HA turbines, specifically for AI data centers, leveraging U.S. energy abundance to underpin computational infrastructure essential for technological competitiveness.^[96]^[97] Complementing this, Engine No. 1 formed a joint venture with Crusoe Energy Systems in March 2025 to build power-first AI data centers, prioritizing integrated energy solutions to address surging demand from artificial intelligence workloads.^[10] These efforts align with the firm's operational team-led approach to partner with portfolio companies on efficiency gains, fostering long-term U.S. industrial capacity without supplanting market discipline.^[98]

Ongoing Investments and Market Positioning

As of mid-2025, Engine No. 1 sustains a highly concentrated portfolio centered on four primary equity holdings in the electrical equipment and power infrastructure sectors: Powell Industries (comprising 45.4% of the portfolio), Vertiv Holdings Co. (28.4%), Eaton Corp Plc (18.8%), and Hubbell Inc. (7.4%).^[99] These positions, valued collectively at approximately $55 million in recent SEC 13F disclosures, underscore a deliberate strategy of depth over diversification, targeting firms integral to electrification, data center expansion, and industrial power management.^[71] No new direct investments were recorded in 2025 through June, reflecting continuity in selective allocation rather than expansion.^[100] The firm's advisory assets under management hover around $430 million, with disclosed 13F securities at $84 million as of early 2024 filings, suggesting performance-driven growth in a niche rather than broad inflows.^[1] Engine No. 1 differentiates its market positioning as an activist-builder hybrid, deploying specialized operational insights to steer investees toward reindustrialization objectives—such as scalable power solutions—prioritizing expertise-led influence over high-volume proxy battles or passive indexing.^[17] This approach enables targeted interventions in underoptimized assets, fostering long-term structural enhancements in U.S. innovation ecosystems like advanced manufacturing and energy reliability.^[73] In February 2025, Engine No. 1 partnered with Chevron Corporation to co-develop reliable, scalable power generation facilities, potentially co-located with high-demand loads, signaling sustained emphasis on energy infrastructure resilient to computational and industrial surges.^[101] This initiative complements portfolio themes by addressing empirical bottlenecks in power supply, positioning the firm to capitalize on verifiable metrics of technological deployment amid evolving regulatory and fiscal supports for domestic reindustrialization.^[17]

References

[1]
Christopher James - Engine No. 1 LLC - Insider Monkey
Engine No. 1 is an American activist and impact-focused investment firm founded in December 2020 by Christopher James, who initially seeded the fund with $250 ...
[2]
Christopher James | Milken Institute
May 7, 2024 · Chris founded Engine No. 1 based on his vision that the macroeconomic trends of deglobalization and decarbonization, accelerated by the ...
[3]
[PDF] Introducing Engine No. 1's Total Value Framework
The firm was founded on the shared belief that a company's ability to create long-term shareholder value depends on the investments it makes in its employees, ...
[4]
Little Engine No. 1 beat Exxon with just $12.5 mln - sources | Reuters
Jun 29, 2021 · BOSTON, June 29 (Reuters) - Activist investor Engine No. 1 spent roughly $12.5 million to win three board seats at Exxon Mobil Corp(XOM.N) ...<|control11|><|separator|>
[5]
Exxon Mobil One Year Later | Engine No. 1
May 25, 2022 · we successfully elected three new independent directors to the Company's Board: Greg Goff, Kaisa Hietala, and Andy Karsner—all of whom have ...
[6]
ExxonMobil and the Energy Transformation Ad Campaign
Engine No. 1 was founded on the idea that actively engaging with companies can create significant financial returns for investors.
[7]
The Hedge Fund Activism of Engine No. 1
It finds that Engine No. 1's activism was seriously flawed from both a theoretical and empirical perspective. It was not able to provide ExxonMobil's management ...
[8]
The Illusion of Success: A Critique of Engine No. 1's Proxy Fight at ...
Aug 10, 2021 · The hedge fund activism of Engine No. 1 did not provide a roadmap for the company to improve its financial performance or specific ...
[9]
And Drove A Dramatic Increase in Shareholder Value - Engine No. 1
Engine No. 1's engagement led to a 350% return, 2.5x outperformance, increased accountability, and a focus on returns, creating substantial value for ...
[10]
[PDF] Engine No. 1 and Crusoe Partner to Launch Powered Data Center ...
Mar 17, 2025 · Chris James, founder and chief investment officer of Engine No. ... 1 is an investment firm that builds and invests in companies that are powering.
[11]
Engine No. 1 Closes Sale of ETF Business to TCW
Oct 16, 2023 · Engine No. 1, an alternative asset manager that provides capital and operational expertise to industries undergoing fundamental transition, today announced the ...
[12]
How we think - Engine No. 1
Engine No. 1 believes decarbonization and the re-industrialization of North America represent tremendous investment opportunity.
[13]
Hedge Fund Veteran Chris James to Start Impact-Investing Firm
Dec 1, 2020 · Chris James, who co-founded one of the biggest technology hedge funds in the early 2000s, is starting a firm to invest in companies that can have a positive ...
[14]
The Commonsense Capitalism of Chris James | Institutional Investor
Oct 6, 2021 · Chris James might seem an unlikely person to become the most prominent ESG investor of 2021. The founder of Engine No. 1, a small investment firm.
[15]
Shareholder Activism for Profit and Purpose
Similarly, San Francisco-headquartered impact hedge fund Engine No. 1 was officially formed in December 2020 and was only weeks old when it announced its ...
[16]
Christopher James - Leadership | Engine No. 1
Before founding Engine No. 1, Chris spent more than 30 years investing in and building businesses across industries undergoing fundamental transformation. ...
[17]
Engine No. 1: Reindustrializing the U.S.
Engine No. 1 is an investment firm that builds and invests in companies that are powering innovation and driving the reindustrialization of the United States.How we think · Leadership Team · Investments · Engine No. 1 Closes Sale of...
[18]
Engine No. 1 Launches to Bring Active Ownership and Impact ...
Dec 1, 2020 · Founded by Chris James, Engine No. 1 has an executive team with decades of experience investing in, creating, building, and operating ...Missing: mission | Show results with:mission
[19]
Activist's Fight at Exxon Started With Lessons at a Coal Mine
May 27, 2021 · His new firm, which only has about $250 million in assets under management, largely from James' personal wealth, launched in December. It ...Missing: seeded | Show results with:seeded
[20]
Engine No. 1: The little hedge fund that shook Big Oil - Quartz
Jun 3, 2021 · Engine No. 1, a hedge fund just six months old, manages around $250 million ... Chris James, the fund's founder, worked for a range of investment ...
[21]
Engine No. 1 Unveils Its Total Value Framework, Which Ties ESG ...
Sep 13, 2021 · Engine No. 1, an investment firm that drives performance through impact, today published a white paper detailing its Total Value Framework.
[22]
[PDF] INTRODUCING THE ENGINE NO. 1 TOTAL VALUE FRAMEWORK
We developed our Total Value Framework to address the current deficiencies in ESG data and to help investors generate lasting impact on corporate behavior and ...
[23]
Engine No. 1 Unveils ESG Framework to Scrutinize Investments
Sep 13, 2021 · The “total value framework” seeks to predict how performance on ESG concerns affects a company's value. “ESG data is as core to the investment ...<|separator|>
[24]
EXCLUSIVE Engine No. 1 aims to tie company valuations to climate ...
Sep 13, 2021 · Engine No. 1, which won an against-the-odds board challenge ... The "total value framework" provides significant new insight into ...
[25]
How Engine No. 1 Breaks the ESG Mold - ETF Database
Aug 4, 2022 · “Our Total Value Framework (TVF) ties E, S & G data directly to economic outcomes. By connecting companies' material environmental and social ...
[26]
Activist Investor Engine No. 1 Ties ESG Impact to Company ...
Sep 15, 2021 · Engine No. 1 rose to ESG investment fame in its successful battle to win seats on Exxon's board, aiming to push the oil and gas giant to act on ...Missing: mission statement ownership ideological
[27]
ESG Activists Met the Moment at ExxonMobil, But Did They Succeed?
Feb 16, 2023 · Impact investing—and an activist fund—are born. Christopher James launched San Francisco-based Engine No. 1 in December 2020, naming it for the ...
[28]
ESG Fund Returns Recover, but Still Trail Conventional Peers by a ...
Feb 5, 2024 · In 2022, sustainable funds underperformed their conventional peers, in part because they didn't participate as fully in the energy rally that ...
[29]
Invest sustainably without sacrificing performance
In 2022, the only sector to gain ground from January to end-September was Energy. This was a key reason for the modest underperformance of Low Carbon and SRI ...
[30]
An Inconvenient Truth About ESG Investing
Mar 31, 2022 · On this basis, setting ESG targets may actually distort decision making. There's also some evidence that companies publicly embrace ESG as a ...
[31]
A New Way of Seeing Value
Sep 24, 2021 · Engine No. 1's Total Value Framework is a data-driven approach to investing that puts a tangible value on a company's environmental, social ...
[32]
Engine No. 1: An Impact Investing Firm Engages with ExxonMobil
A start-up impact investing hedge fund, Engine No. 1, invested $38 million in ExxonMobil stock and mounted a proxy fight to change the company's direction.
[33]
Exxon Mobil Defeated by Activist Investor Engine No. 1
Jun 9, 2021 · BlackRock, Vanguard and State Street voted against Exxon's leadership and gave Engine No. 1 powerful support. These huge investment companies ...
[34]
Can a Tiny Hedge Fund Push ExxonMobil Towards Sustainability?
Jan 20, 2021 · And in an open letter of December 7, 2020, addressed to Exxon's board of directors, Engine No.1 notes that Exxon's Return on Capital ...<|separator|>
[35]
ExxonMobil announces preliminary results in election of directors
May 26, 2021 · Shareholders have elected eight of ExxonMobil nominees to the board of directors and two of Engine No. 1 nominees. Vote results for five nominees were too ...
[36]
ExxonMobil updates preliminary results on election of directors
Jun 2, 2021 · Based on estimates by the company's proxy solicitor, shareholders are expected to elect nine ExxonMobil nominees and three Engine No. 1 nominees ...
[37]
Engine No. 1 extends gains with a third seat on Exxon board | Reuters
Jun 3, 2021 · A non-binding shareholder proposal asking the company to split the CEO and chairman's roles was supported by 22.1% compared to 32.7% last year, ...
[38]
What the Exxon Mobil Shareholder Votes Mean - Skadden Arps
Jun 16, 2021 · Engine No. 1 was successful notwithstanding the outsized retail ownership at Exxon (reported to be 40%), a shareholder base that usually ...
[39]
Exxon Doubles Down on Fossil Fuels Three Years After a Vaunted ...
May 20, 2024 · 1 spent $35 million to buy .002% of Exxon's total shares outstanding and campaigned to add green energy experts to Exxon's board of directors.
[40]
Exxon and Engine No. 1: A Lookback 2 Years Later
Jun 15, 2023 · In the most high-profile proxy contest of 2021, Engine No. 1 succeeded in electing three directors to ExxonMobil's board.
[41]
Why ExxonMobil's Proxy Contest Loss is a Wakeup Call for all Boards
Jul 5, 2021 · However, the ExxonMobil proxy fight may be a sign things have changed. Twenty twenty-one will go down as the year that large institutional ...
[42]
[PDF] Bernard S. Sharfman, The Illusion of Success
The hedge fund activism of Engine No. 1 did not provide a roadmap for the company to improve its financial performance or specific recommendations on how it ...
[43]
Exxon faces proxy fight launched by new activist firm Engine No. 1
Dec 7, 2020 · Exxon is reviewing the hedge fund's letter, an Exxon spokesman said. The U.S. oil company this year reversed course on a massive oil and gas ...<|separator|>
[44]
Can a Tiny Hedge Fund Push ExxonMobil Towards Sustainability?
And in an open letter of December 7, 2020, addressed to Exxon's board of directors, Engine No.1 notes that Exxon's Return on Capital Employed (ROCE) for ...
[45]
[DOC] Download DOC - Exxon Mobil Investor Relations
In a letter sent today to the Board, Engine No. 1 outlined the case for much-needed change at ExxonMobil and a proposed path forward to protect and enhance long ...
[46]
Exxon Mobil Corporation - SEC.gov
Mar 15, 2021 · 1 and the Company leading up to the filing of this Proxy Statement: On December 7, 2020, Engine No. 1 sent a letter to the Board outlining ...
[47]
Engine No. 1 Issues Message to ExxonMobil Shareholders
May 19, 2021 · Here is what we said in our first letter: “We believe ExxonMobil needs a more disciplined and forward-thinking approach to capital allocation ...
[48]
Engine No. 1 Formally Nominates Four Director Candidates to ...
Jan 27, 2021 · It has formally nominated four highly qualified, independent director candidates with diverse track records of success across the energy sector to the Exxon ...
[49]
Commentary: Engine No. 1's big win over Exxon shows activist ...
May 28, 2021 · This is what makes Engine No. 1's fight so interesting. It began in early December 2020, shortly after tech investor Chris James launched Engine ...
[50]
Why Engine No. 1 Is Taking on ExxonMobil in Arguably the Biggest ...
Apr 21, 2021 · Engine No. 1 launched its “Reenergize Exxon” campaign in December 2020 after Exxon was removed from the Dow after a 92-year tenure. Earlier ...Missing: establishment date
[51]
ExxonMobil faces historic loss in proxy shareholder battle over ...
May 26, 2021 · ExxonMobil conceded defeat on Wednesday afternoon in a months-long proxy battle, after the oil and gas giant lost a vote over the future of its ...
[52]
Exxon Mobil: Drilling Down on the Proxy Vote - MSCI
Jun 1, 2021 · June 1, 2021. The historic win of at least two seats on Exxon Mobil Corp.'s board by activist shareholder Engine No. 1 signals a dramatic ...
[53]
ExxonMobil comments on Engine No. 1 nomination of director ...
Jan 27, 2021 · ExxonMobil has engaged with Engine No. 1 since mid-December. The company's board affairs committee will evaluate Engine No.
[54]
Why we're investing $15 billion in a lower-carbon future | ExxonMobil
Nov 9, 2021 · Over the next six years, ExxonMobil plans to invest more than $15 billion on lower greenhouse gas emission initiatives.
[55]
ExxonMobil announces corporate plans to 2027
Dec 1, 2021 · As part of its plan, ExxonMobil has committed $15 billion for lower-emission investments through 2027. These investments will include a ...
[56]
ExxonMobil announces ambition for net zero greenhouse gas ...
Jan 18, 2022 · ExxonMobil today announced its ambition to achieve net zero greenhouse gas emissions for operated assets by 2050, backed by a comprehensive approach.
[57]
Engine No. 1 held talks with Coca-Cola on new recycling initiatives
Oct 18, 2022 · Engine No. 1 has suggested a partnership between Coca-Cola and garbage collection and recycling company Republic Services Inc (RSG. N) , opens ...
[58]
Engine No. 1 Spoke With Coca-Cola About Plastics Recycling
Oct 18, 2022 · Engine No. 1's investments in Coca-Cola and other consumer-goods companies are held in passively run exchange-traded funds as opposed to ...
[59]
An activist investor has a garbage plan for Coca-Cola - Semafor
Oct 18, 2022 · Engine No. 1 has proposed that Coke signal its seriousness with a major investment —either into Republic itself or in the form of a long-term ...
[60]
Engine No.1 calls on Coca-Cola to enforce recycling commitments
Oct 18, 2022 · Activist investment firm Engine No.1 has taken a stake in Coca-Cola and called on the global beverage giant to enforce its commitment to ...
[61]
Your Vote Your Voice – Active Ownership in Action | Engine No. 1
Our focus is to create value by helping companies transform their businesses to be sustainable—and voting is a key lever with which we push for best corporate ...
[62]
[PDF] Engine No. 1 Proxy Voting Guidelines
We generally support proxy access proposals which allow a shareholder (or group of up to 20 shareholders) holding three percent of a company's outstanding ...
[63]
Exxon nemesis Engine No. 1 drops activism in hunt for new identity
Aug 8, 2023 · James launched Engine No. 1 in late 2020 with approximately $250mn of his own money. He had previously founded Partner Fund Management and ...Missing: date | Show results with:date
[64]
Engine No. 1 to launch $100 million ETF focused on ESG engagement
Jun 22, 2021 · Engine No. 1 was founded by Chris James, a hedge fund veteran and cofounder of Partner Fund Management and Andor Capital Management.
[65]
https://www.marketwatch.com/investing/fund/vote
[66]
3 Years Later, VOTE Continues Changing Passive Investing
Jun 6, 2024 · VOTE, previously the Engine No. 1 Transform 500 ETF, is their brainchild. Launched at a time when ESG funds still enjoyed some support, TCW ...
[67]
engine no. 1 transform 500 etf - SEC.gov
This prospectus provides important information about the Fund that you should know before investing. Please read it carefully and keep it for future ...
[68]
Engine No. 1 Transform 500 ETF (VOTE) - Stock Analysis ...
Based on daily data since Jun 2021, the average daily return (also called the expected return) is 0.05%, while the average monthly return is 1.07%.
[69]
https://www.tcw.com/Our-Firm/Newsroom/Press/2023/2023-10-11-Engine-No1-ETF-Shareholders-Approve-Sale-to-TCW
[70]
TCW Transform Systems ETF Q2 2025 Commentary | Seeking Alpha
Sep 9, 2025 · Net of fees, TCW Transform Systems ETF returned 29.53% in Q2 2025 compared to 10.94% for the S&P 500. Read more here.
[71]
Engine No. 1 Llc Portfolio Holdings - Fintel
Engine No. 1 Llc has disclosed 4 total holdings in their latest SEC filings. Most recent portfolio value is calculated to be $ 55,146,380 USD.Missing: direct | Show results with:direct
[72]
Engine No. 1 LLC 13F Filings
Engine No. 1 LLC reported 4 holdings with total value $55.1 M as of Q2 2025. Top holdings included POWL, VRT, ETN, and HUBB.
[73]
Investments | Engine No. 1
Engine No. 1 is an investment firm that builds and invests in companies that are powering innovation and driving the reindustrialization of the United States.
[74]
[PDF] Reindustrialization of North America - $3.5 Trillion - Engine No. 1
Apr 19, 2023 · We believe there is massive investment opportunity in the companies that will benefit from the systems transformation driven by the ...Missing: activism | Show results with:activism
[75]
Engine No. 1 - CB Insights
Engine No. 1 is an investment firm that invests in public and private companies through active ownership. Headquarters Location. San Francisco, California,.Missing: direct | Show results with:direct
[76]
Asset Manager TCW Acquires Engine No. 1's ETF Business
Jul 25, 2023 · The deal should close in the third quarter of 2023, subject to shareholder approval. Engine No. 1's ETF portfolio managers and staff will become ...Missing: sells | Show results with:sells
[77]
ExxonMobil Stock Analysis and Oil & Gas Market Insights with XOM ...
In recent years, ExxonMobil stock has rebounded strongly. From a dip below $40 in March 2020 to highs above $100 in 2023, the rebound reflects rising oil ...
[78]
Energy Was the S&P 500's Best-Performing Sector in 2021. Can the ...
Jan 10, 2022 · The energy sector produced the best total return of any sector at 53.4%, compared to the S&P 500's 28.7% total return.
[79]
Evaluating Hedge Fund Activism: Engine Number 1 and ExxonMobil
Aug 14, 2023 · Efforts by Engine Number 1 affect returns to ExxonMobil stock for short periods, but electing its candidates have no permanent effect. These ...Missing: outperformance | Show results with:outperformance
[80]
Was the Exxon Fight a Bellwether?
Jul 24, 2021 · Exxon Mobil, one of the largest corporations in the world, lost three board seats in a proxy fight with Engine No. 1, giving the dissident control of a quarter ...<|control11|><|separator|>
[81]
[PDF] Engine No. 1: An ESG Upstart Challenges Fund-Industry ...
When James began to organize Engine No. 1, the idea to challenge Exxon Mobil in a proxy fight had already crystallized, and he and Edward. Sun, portfolio ...
[82]
A tiny, climate-conscious player is creating a giant headache for Big ...
May 25, 2021 · Unlike prior attempts to take on Exxon Mobil and other big oil companies, Engine No. 1 didn't engage on the social merits of oil or drilling.
[83]
Exxon Mobil's Winning Strategy: Staying True To Oil
Aug 27, 2024 · Exxon Mobil remains committed to its fossil fuel investments, with the majority of its capital expenditure still focused on oil and gas ...
[84]
The Retreat of Exxon and the Oil Majors Won't Stop Fossil Fuel
the quantity of hydrocarbons that ...Missing: post | Show results with:post<|control11|><|separator|>
[85]
Beyond the Proxy: Reclaiming E&S Strategy from Hedge Fund ...
Apr 2, 2025 · This piece argues that corporate boards, not activist hedge funds, are best positioned to lead E&S initiatives. Boards have fiduciary duties to ...
[86]
ExxonMobil reduces 2020 capex by 30%, cash opex by 15%
Apr 7, 2020 · ExxonMobil said today said it is reducing its 2020 capital spending by 30 percent and lowering cash operating expenses by 15 percent in response to low ...Missing: 2014-2020 | Show results with:2014-2020
[87]
[PDF] Shifting Oil Industry Structure and Energy Security Under Investment ...
The recent oil price collapse and the rise of ESG politics have the potential to make this a very real obstacle to the development of oil supply, or at least to ...
[88]
The Exxon shareholder revolt made worldwide news. Here's what ...
Nov 24, 2023 · Far from a transition, Exxon has doubled down on fossil fuels. They spent US$60 billion on buying Pioneer Resources, an oil and gas producer, ...
[89]
The Exploration Crisis: Why Oil & Gas Companies Are Finding Less ...
Oct 16, 2025 · Our experts discuss the financial pressures ... underinvestment, and why global proven reserves have declined by 35% despite growing energy demand ...
[90]
What If Both Sides Of The ESG Debate Are Right About US Majors ...
Jan 19, 2023 · My hypothesis is that US majors underinvest both in renewables and in oil and gas needed to get us through the energy transition.
[91]
The Next Oil Shock Will Come from Neglect, Not Geopolitics
Oct 15, 2025 · This underinvestment stems from a mix of factors: regulatory pressures, investor demands for ESG compliance, and the allure of renewables.
[92]
Navigating the Critical Underinvestment Crisis in Oil and Gas Sector
Oct 9, 2025 · Underinvestment in oil and gas threatens energy security, driving price volatility and shifting global production dynamics.
[93]
Global Energy on the Brink: Accelerating Oil Field Declines and ...
Sep 23, 2025 · Additionally, growing ESG pressures and global net-zero commitments have influenced investment decisions, with some investors and activists ...
[94]
TCW Completes Acquisition of Engine No. 1 ETF Business
Oct 16, 2023 · TCW acquired Engine No. 1's ETF business, including the Transform ETF platform with over $600 million in assets, expanding TCW's capabilities.Missing: industrial revival
[95]
[PDF] A Letter from the CIO - Engine No. 1
Engine No. 1 intends to measure the investment made by companies in their employees, communities, customers and the environment, including through the use of ...Missing: firm | Show results with:firm
[96]
Chevron, Engine No. 1 and GE Vernova To Power U.S. Data Centers
Jan 28, 2025 · 1. Engine No. 1 is an investment firm that builds and invests in companies that are driving the reindustrialization of the United States. For ...<|separator|>
[97]
[PDF] Engine No. 1, Chevron, and GE Vernova To Power US Data Centers
Jan 28, 2025 · New joint development plans to deliver up to four gigawatts (GW) of power by leveraging American energy abundance to drive American AI ...
[98]
Jake Appleton - Leadership | Engine No. 1
Jake leads the firm's operating team, which partners with Engine No. 1 portfolio companies to drive value creation through generating operational improvements.
[99]
ENGINE NO. 1 LLC - Hedge Fund 13F Holdings - Grufity.com
The top stock holdings of ENGINE NO. 1 LLC are POWL, VRT, ETN. The fund has invested 45.4% of it's portfolio in POWELL INDS INC and 28.4% of portfolio in VERTIV ...<|separator|>
[100]
Engine No. 1 - 2025 Investor Profile, Portfolio, Team & Investment ...
Jun 21, 2025 · Overall, Engine No. 1 portfolio has seen 1 unicorn and 3 IPOs including key companies like The Coca-Cola, Crusoe and Gogoro. A lot of funds co- ...
[101]
Engine No. 1 - Investorlist
In February 2025, Engine No. 1 partnered with Chevron Corporation to develop scalable and reliable power generation solutions, aiming to co-locate power plants ...