ExxonMobil declares its intention to achieve net zero greenhouse gas emissions by 2050
ExxonMobil announced today its goal of achieving net zero greenhouse gas emissions for its operating assets by 2050, backed by a comprehensive approach to developing detailed emission-reduction roadmaps for major facilities and assets.
The company's net-zero goal is detailed in the Advancing Climate Solutions - 2022 Progress Report, formerly known as the Energy & Carbon Summary. The net-zero goal applies to Scope 1 and Scope 2 greenhouse gas emissions and builds on ExxonMobil's 2030 emission-reduction plans, which include net-zero emissions for Permian Basin operations as well as ongoing investments in lower-emission solutions in which the company has extensive experience, such as carbon capture and storage, hydrogen, and biofuels.
"ExxonMobil is committed to leading the energy transition, and Advancing Climate Solutions articulates our deliberate approach to assisting society in achieving a lower-emissions future,"
said Darren Woods, chairman and CEO.
"We are developing comprehensive roadmaps to reduce greenhouse gas emissions from our globally operated assets, and where we are not the operator, we are working with our partners to achieve similar emission-reduction results."
ExxonMobil's business strategy is resilient when tested against a variety of Paris-aligned net-zero scenarios, including the United Nations Intergovernmental Panel on Climate Change's 2018 Special Report and the International Energy Agency's Net Zero by 2050 scenario, according to the report.
ExxonMobil's Outlook for Energy, based on current policy and technology trends, remains the foundation for the company's business plans and investment decisions. In the Advancing Climate Solutions report, the company describes how its short- and medium-term business plans are adaptable to changes in policy and technology, as well as how it uses signposts and leading indicators to assess the need for future changes.
Sound government policies will hasten the deployment of critical technologies at the rate and scale required to support a net-zero future. ExxonMobil continues to advocate for an explicit carbon price to create market incentives and encourage investment in low-emission technologies.
ExxonMobil is also committed to assisting customers in lowering their carbon footprint by investing in carbon capture and storage, hydrogen, and biofuels. Bio-based feed and plastic waste streams offer additional opportunities to reduce greenhouse gas emissions.
"As we invest in these critical technologies," Woods said,
"we will advocate for well-designed, high-impact policies that can accelerate the deployment of market-based, cost-effective solutions. We believe our strategy is unique in the industry and allows us to succeed in a variety of scenarios. To match the pace of the energy transition, we will create shareholder value by adjusting investments between our existing low-cost portfolio and new lower-emission business opportunities."
The company has identified more than 150 potential steps and modifications that can be applied to assets in its upstream, downstream, and chemical operations to help reach net zero for operated assets by 2050.
Initial efforts are focusing on energy efficiency, methane mitigation, equipment upgrades, and the elimination of venting and routine flaring. Power and steam co-generation, as well as electrification of operations using renewable or lower-emission power, are other high-impact reduction opportunities. The company expects to complete detailed roadmaps addressing roughly 90% of operations-related greenhouse gas emissions by the end of this year, with the remainder completed in 2023.
Initial steps toward net zero emissions by 2050 are included in the company's plans to invest more than $15 billion in lower-emission initiatives by 2027. Policies that accelerate the development and deployment of lower-emission technologies may open up new investment opportunities for ExxonMobil.
The Advancing Climate Solutions - 2022 Progress Report can be found at exxonmobil.com. The report elaborates on the company's 2030 greenhouse gas emission-reduction plans, which are in line with Paris-aligned pathways, the United States and European Union's Global Methane Pledge, and the United States Methane Emissions Reduction Action Plan. In 2030, the plans include a 20-30% reduction in corporate-wide greenhouse gas intensity, which includes a 40-50% reduction in upstream greenhouse gas intensity, a 70-80% reduction in corporate-wide methane intensity, and a 60-70% reduction in corporate-wide flaring intensity.
The 2030 emission-reduction plans aim to achieve World Bank Zero Routine Flaring by 2030 and to cut absolute greenhouse gas emissions by 30% for the company's upstream business and 20% for the entire corporation. Similarly, absolute flaring and methane emissions are expected to fall by 60% and 70% by 2030, respectively.
ExxonMobil has and will continue to update its emission-reduction plans as technologies and policies evolve. When all of the data is collected and analysed, the company expects to report that it met its 2025 emission-reduction targets by the end of 2021, including a 15-20% reduction in greenhouse gas intensity for its upstream operations compared to 2016.
ExxonMobil's strategy, outlined in Advancing Climate Solutions, leverages its scale, integration, technology, and people advantages to build globally competitive businesses that lead the industry in earnings and cash flow growth across a wide range of future scenarios.
Source: ExxonMobil news