Exxon Aims For Net-Zero Carbon Emissions By 2050

(RTTNews) - Oil major Exxon Mobil Corp (XOM) on Tuesday vowed to bring to zero the net carbon emissions from the company's global operations by the year 2050, a right step in the direction of reducing its carbon footprints.

Exxon had first talked about the 2050 plan last year and it covers emissions from its oil, gas, and chemical production and from the so-called scope 1 and 2 targets, which is the power these operations consume. The company has not made any obligation for the emissions made by consumers using Exxon products. It made no commitment for emissions from consumers using those products.

Commenting on the 2050 targets, Exxon Chief Executive Officer Darren Woods said, "We are developing comprehensive roadmaps to reduce greenhouse gas emissions from our operated assets around the world."

In December 2021, the oil major had pledged to achieve zero greenhouse gas emissions at its U.S. Permian Basin shale field by 2030. Similarly, Exxon emerged the highest bidder in a U.S offshore auction of properties for an upcoming greenhouse gas sequestration hub.

Companies like Exxon and Chevron Corp. (CVX) are far behind other companies in achieving Paris climate goals. Other oil majors like BP Plc , Occidental Petroleum , ENI SpA and Royal Dutch Shell Plc have pledged to cut emissions not only from fuels but also from products sold to consumers, so-called scope 3 targets.

Exxon and Chevron plan to increase production this decade, supported by estimates that global demand will rise. In October of last year, Chevron promised to bring down emissions from its upstream operations to zero by 2050 and lower the intensity of emissions at its all-other plants.

Tuesday's pledge puts Exxon in tune with the Oil and Gas Climate Initiative or OGCI, an industry group planning to reduce the carbon-emissions intensity per unit of output. Exxon CEO Woods said that the company aims to reduce carbon intensity over time by controlling methane leaks, updating equipment and electrification production operations.

Even with all these efforts, Exxon lags behind other world energy producers who have taken the initiative to slowly reduce oil production and add renewable wind and solar power to their portfolios.

To be on track with its 2050 plans, Exxon will increase spending on projects dedicated to lower-carbon emissions. This includes the development of technologies, which are at present, not commercial, like carbon capture and storage, hydrogen power, and biofuels from algae.

In 2021, Exxon's shareholders removed three directors and replaced them with candidates proposed by a hedge fund. This was done to improve revenues and better prepare the company for a low-carbon world. Since then, Exxon has taken steps to tackle climate concerns, including putting $15 billion toward emissions initiatives over six years.