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Exxon has come under pressure from investors and activists to reduce its carbon footprint.
Photo: Callaghan O’Hare/Bloomberg News
Exxon Mobil Corp. XOM -2.24% pledged to reduce the greenhouse-gas emissions from its operations over the next five years and eliminate “routine flaring” of methane by 2030 as it responds to pressure from activists and investors to reduce its carbon footprint.
The Texas oil giant said Monday that it would cut the “intensity” of emissions from its oil-and-gas production by 15% to 20%, reduce its methane emissions intensity by 40% to 50% and cut its flaring intensity by 35% to 45%. It didn’t provide hard numbers on exactly how much of total emissions those reductions would represent.
The company also said it would end routine flaring, or venting, of methane from its oil-and-gas operations by the end of the next decade. Methane is a potent greenhouse gas that, like carbon dioxide, is a contributor to climate change, according to the Environmental Protection Agency.
The targets are related to emissions that come directly from Exxon’s operations and not from its products, like gasoline and jet fuel. Exxon said it would begin disclosing emissions data related to its products next year.
“We respect and support society’s ambition to achieve net zero emissions by 2050, and continue to advocate for policies that promote cost-effective, market-based solutions to address the risks of climate change,” Exxon Chief Executive Darren Woods said.
Exxon said the targets are consistent with the Paris climate accord, which the company says it supports.
Last week, a newcomer activist investor launched a proxy fight against Exxon, arguing the beleaguered energy giant needs to act faster to remake itself and invest in clean energy.
Engine No. 1, an investment firm with a sustainability bent, said in a letter sent to Exxon that it needs to explore significant investment in clean energy to help the company profitably ensure it can commit to emission-reduction targets. The letter, which also argued for cost-cutting measures and other changes, identifies four people the firm plans to nominate to Exxon’s 10-person board.
Exxon has previously declined to comment on the letter.
Some of Exxon’s largest investors have for years pushed it on climate change-related issues. BlackRock Inc., in particular, has a history of singling out Exxon for not moving quickly enough to address climate risks, and it cited those concerns earlier this year when it voted against two Exxon directors and in favor of separating the chairman and CEO roles. The directors were elected and the roles weren’t separated.
Exxon said Monday it would also continue to factor environmental performance into executive compensation and support putting a price on carbon.
In 2018, Exxon set targets to reduce methane emissions by 15% and reduce flaring by 25% from 2016 levels by the end of 2020. It said it is on track to meet those targets.
Write to Christopher M. Matthews at [email protected]
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