Exxon Mobil Corp. said it will continue to pursue an unusual lawsuit against two climate-focused shareholder groups after the defendants on Feb. 2 dropped the resolution that spurred the litigation.

The oil major sued the shareholder groups Follow This and Arjuna Capital in late January over a proposal asking the company to speed up its reduction of greenhouse gas emissions and to include indirect Scope 3 emissions in its climate targets. ExxonMobil asked the US District Court for the Northern District of Texas for a "declaration" backing the company's right to exclude the resolution — a move that would circumvent the SEC's regular guidance process.

Litigating in federal court would "result in silencing investors that voice climate-risk concerns," Arjuna Capital Chief Investment Officer Natasha Lamb said in a statement confirming the withdrawal of the shareholder resolution. "Not only is the company side-stepping a critical corporate accountability mechanism that has upheld shareholder freedoms for decades; this amounts to tactics of intimidation and bullying."

Mark van Baal, founder of Netherlands-based Follow This, issued a statement suggesting the groups wanted to avoid a court battle.

"Given Exxon's preference to fight a battle in court rather than allow shareholders the freedom of a vote at its annual meeting, we decided to withdraw the climate proposal," van Baal said. "Now that we have withdrawn and promised not to refile the proposal with Exxon, the company has no reason to continue the lawsuit."

ExxonMobil had sought to expedite the case to get a ruling ahead of its May 29 shareholder meeting.

"Because the proposal was withdrawn, it's no longer critical to expedite the hearing," the oil major said in an emailed statement. "However, we believe there are still important issues for the court to resolve. There is no change to our plans, the suit is continuing, and we're evaluating our options."

Arjuna Capital also called on the oil company to drop the lawsuit.

"There is no basis for Exxon to continue this attack," Lamb said. "Diversified investors seeking to mitigate material climate risk expect better from the company."