ExxonMobil announces emissions cuts plans amid shareholder disquiet
US oil major ExxonMobil has announced its plans to cut emissions per barrel of oil produced by as much as 20% over the next five years following pressure from shareholders for action on climate change.
The company said yesterday that its goal was for a per-barrel cut of 15-20% compared with 2016 levels, by 2025
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Exxon is facing a vocal campaign by shareholders, which was recently joined by the Church of England, to accelerate actions aimed at reducing its environmental action including a cleaner fuels strategy and the appointment of new directors.
Many oil producers in the US are promising to cut emissions in the face of increasingly outspoken investors who are worried about climate change, especially ahead of January's inauguration of new US president Joe Biden, who has said that the wants the country to "transition away from the oil industry".
ExxonMobil - once the largest company in the world and a symbol of big US oil - has been slow to change strategy in this backdrop, continuing the expansion of crude output despite a shift amongst competitors towards greener energy production and certain forecasts pointing to global peak crude consumption this decade.
Unlike the emissions targets of many of its European counterparts, Exxon's targets apply only to scope 1 and 2 emissions - which are produced by its operations and energy providers. Scope 3 emissions - produced by burning its oil - are not covered by the new targets.
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Exxon says that it will, however, publish scope 3 emissions figures annually.
The new targets would be able focusing on cutting emissions from oil and gas operations, Exxon said, and made no indication that there would be a pivot towards increased investment in low carbon energy such as wind and solar.
The targets include a cut in methane emissions of between 40-50% per barrel, as well as a 35-45% reduction in barrel flaring by 2030 - both of which the incoming Biden administration has said it will crack down on.
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