NorthAmOil: ExxonMobil unveils net-zero goal

ExxonMobil announced this week that it would pursue an “ambition” to achieve net zero greenhouse gas (GHG) emissions from its operated assets by 2050.
The move represents a significant step for the super-major, which previously avoided committing to net zero on the basis that it had no realistic plan for achieving such a goal. However, the target falls short of more aggressive net-zero commitments set out by European super-majors such as Royal Dutch Shell and BP.
In a January 18 statement, ExxonMobil said its approach would centre on Scope 1 and 2 emissions – respectively those stemming directly from its operations and indirectly from energy used to power those operations. Scope 3 emissions – those resulting from the end use of ExxonMobil’s products by its customers – are not included in the plan.
The plan builds on ExxonMobil’s announcement in December that it would pursue net-zero emissions from its Permian Basin operations in the US by 2030. That announcement was part of a series of moves the company unveiled at the time in pursuit of more ambitious decarbonisation goals compared to what it had been aiming for previously.
Now, ExxonMobil is taking its decarbonisation plans further still. The latest announcement comes less than a year after the super-major saw three nominees of activist hedge fund Engine No. 1 gain seats on its 12-seat board of directors. Engine No. 1 wants ExxonMobil to take a tougher line on decarbonisation on the basis that it would be a more profitable strategy than focusing predominantly on fossil fuel production.