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Exxon Considers Pledging Net-zero Carbon Emissions by 2050

August 5, 2021

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Exxon Mobil Corp is considering a pledge to reduce its net carbon emissions to zero by 2050, the Wall Street Journal reported on Thursday, citing people familiar with the matter.

The report comes more than two months after the oil major's shareholders cast out three Exxon directors for the nominees of a hedge fund that promised to boost returns and better prepare the company for a low-carbon world.

Exxon has not made a final decision on the net-zero pledge, the report said. It added that the company planned to unveil a series of strategic moves on environmental and other issues before the end of 2021.

Exxon did not immediately respond to a Reuters request for comment.

Its Chief Executive Darren Woods said last week that Exxon had started working with the new directors in June for in-depth reviews of its businesses, including its approach to the energy transition.

Exxon currently plans to reduce greenhouse gas emissions by an estimated 30% in its oil and gas production business, as part of a plan that is expected to be achieved by 2025.

The largest U.S. oil company in July also joined some of the world's other top oil firms in setting up goals to cut their greenhouse gas emissions as a proportion of output.

But Exxon's plan, which covers emissions from its direct operations and emissions from the power it uses for its operations, has lagged those of its European rivals. BP Plc and Royal Dutch Shell Plc have also pledged to cut emissions from products sold in their plans.

Exxon was also recently embroiled in controversy after a lobbyist for the company said it supports a carbon tax publicly because the plan to curb climate change would never gain enough political support to be adopted. CEO Woods condemned those comments.

(Reporting by Sahil Shaw; Editing by Aditya Soni)

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