Exxon to deliberate on ‘Net-zero carbon emissions by 2050’ pledge

Aug 08, 2021 News

Kaieteur News – According to International media agency – Reuters, ExxonMobil Corporation is considering a pledge to reduce its net carbon emissions to zero by 2050, according to sources familiar with the matter. Reuters reported that the deliberations come as the company is considering its future according to the sources who spoke on the condition of anonymity because the discussions are private. This comes on the heels of three Exxon directors being replaced with candidates proposed by a new hedge fund, which had been pressuring Exxon to boost returns and better prepare itself for a low-carbon world.
Exxon has not made a final decision on the net-zero pledge, according to The Wall Street Journal, which first reported that the pledge is being considered. It added that the company planned to unveil a series of strategic moves on environmental and other issues before the end of 2021. Exxon declined to comment, saying deliberations of the board are private, but said it is committed to working to decarbonise high-emitting sectors and invest in technologies that will help society achieve a net-zero future.
“Throughout our engagement process with shareholders, we have heard clearly their interest in our work in this area and affirm our commitment,” it said in a written response. Chief Executive Officer, Darren Woods, said last week that Exxon had started working with the new directors in June for in-depth reviews of its businesses, including its approach to the energy transition. Exxon currently plans to reduce greenhouse gas emissions by an estimated 30% in its oil and gas production business, as part of a plan that is expected to be achieved by 2025.
In July, the largest U.S. oil company also joined some of the world’s other top oil firms in setting up goals to cut their greenhouse gas emissions as a proportion of output. However, Exxon’s plan, which covers emissions from its direct operations and from the power it uses for its operations, has lagged those of its European rivals. BP Plc and Royal Dutch Shell Plc have also pledged to cut emissions from products sold in their plants. Despite this apparent pledge, ExxonMobil was also recently embroiled in controversy after a lobbyist for the company said it supports a carbon tax publicly because the plan to curb climate change would never gain enough political support to be adopted. CEO Woods condemned those comments.

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