ExxonMobil Sets Net Zero Targets

It’s deja vu all over again with new net-zero targets from ExxonMobil. 

As big oil and gas companies continue to refine (pun intended) their plans and goals for reducing greenhouse gas emissions, ExxonMobil has been a will-they-won’t-they. 

From WSJ

Last week, the company announced a pledge to cut emissions to net zero by 2050. 

But…and this is a big but…

The pledge doesn’t include scope 3 targets—emissions from the use of its products. 

Other companies like BP and Shell have set scope 3 targets to cut emissions from the end-use of their products. Environmentalists are happy that ExxonMobil has set net-zero targets (unsurprising after the board shakeup last year), but they see it as a big greenwashing effort. 

This is partly because there is no standard definition for net zero, which can make these pledges feel like an exercise in image management.

But the company did release plans for reducing emissions, namely by focusing on:

• Energy-efficiency measures

• Reducing methane leaks

• Upgrading equipment

• Eliminating the venting and routine flaring of natural gas

These activities will come with investments more than $15 billion by 2027 on lower-emission initiatives.

As usual with this type of pledge, many are excited about the announcement while others feel it isn’t “enough.” Such is the energy transition.