American oil giant ExxonMobil on Monday announces plans to cut greenhouse gas (GHG) emissions over the next five years. The company aims at cutting the intensity of its upstream GHG emissions by 15%-20% by 2025, from 2016 baselines. This will be carried out by reducing methane and flaring intensity in Exxon’s global operations by 40%-50% and 35%-45%, respectively. Reducing intensity means that emissions could still rise if oil and gas production increases.
The company said it would meet goals it set in 2018 by the end of 2020 to lower methane and flaring emissions by 15%-25% from 2016 levels. Exxon also plans to disclose Scope 3 emissions in 2021. Scope 3 includes GHG emitted by end-users when using fuels purchased from Exxon. It also aims to end routine natural gas flaring by 2030.
Since 2000, ExxonMobil has spent over $10 billion to develop and deploy lower-emission technologies. It invested nearly $3 billion in cogeneration facilities that produce electricity more efficiently and emit less GHG. The company said it had developed specific, actionable plans to support the Paris climate accord. It will also announce further goals after the 2025 targets are met.
However, Exxon falls short on efforts to reach net-zero emissions. Rivals such as BP, Shell, ConocoPhillips, and Occidental have net-zero targets for their operational emissions. Exxon has been under pressure from investors to adjust operations to focus on clean energy. Last week, activist investment firm Engine No. 1 launched a campaign to push the company to shift to cleaner fuels and overhaul its board. The California State Teachers’ Retirement System (CalSTRS), hedge fund D.E. Shaw, and the Church Commissioners for England have joined the campaign.
