NRG NorthAmOil: ExxonMobil weighs net zero pledge

Super-major ExxonMobil is reportedly considering making a pledge to pursue net zero greenhouse gas (GHG) emissions. This comes as the company finds itself under growing pressure from investors over its stance on decarbonisation.
ExxonMobil’s CEO, Darren Woods, had previously dismissed net zero targets set by certain European rivals as nothing more than a “beauty competition”, without a tangible plan to achieve such goals. However, last week the Wall Street Journal cited sources familiar with the matter as saying ExxonMobil was considering adopting such a target itself. If it does, this would mark a significant strategic shift by the super-major.
The sources said that ExxonMobil had not yet made a decision on net zero, but added that it would be unveiling a series of strategic moves on environmental and other issues before the end of 2021.
Earlier this year an activist investor, Engine No. 1, succeeded in having three of its nominees elected to ExxonMobil’s board of directors. Engine No. 1 is also aiming to transform the company, in part by making it significantly reduce its emissions. Woods said in late July that ExxonMobil had started working with the new directors in June for in-depth reviews of its businesses, including its approach to the energy transition.
In a development that will add to the growing pressure ExxonMobil is facing on climate change issues, the company was suspended last week from the Climate Leadership Council (CLC), an advocacy group that it had helped to found. The move came weeks after an ExxonMobil lobbyist said the company only supported a carbon tax publicly because it would never gain enough political support to be adopted. Woods had condemned the comments.