ExxonMobil has announced its corporate plans through to 2027, which include reducing carbon emissions. They have committed $15 billion to this cause – totaling $2.5 billion per year.
Exxon will focus on projects to lower emissions, while investing in low-carbon solutions (like carbon capture and storage, biofuels, and hydrogen).
Right now, Exxon is on track to meet its 2025 GHG reduction plans. They are even 4 years ahead of schedule!
According to Chairman and Chief Executive Officer Darren Woods, “The focused actions we have taken have enabled us to accelerate greenhouse gas reductions, particularly in the areas of methane and flaring.”
Exxon’s Greenhouse Gas Emission-Reduction Plans include a:
- 20-30% reduction in corporate-wide intensity
- 40-50% reduction in Upstream intensity
- 70-80% reduction in corporate-wide methane intensity
- 60-70% reduction in corporate-wide flaring intensity
It is important to note that these plans are limited to Exxon’s operations; they do not cover customers who are burning their fuel. However, many of Exxon’s customers such as BP and Royal Dutch Shell have committed to reducing their own emissions. Even Chevron, Exxon’s largest US competitor, is spending $10 billion towards low-carbon ventures.
As more companies seek to reduce emissions, carbon offsets will continue to play an integral role. With a new global standard in place, many expect the carbon credit and offset industry to be valued at $100 billion by 2030 – up from just $300 million in 2018.
Woods went on to say that “[Exxon’s] strategy is designed to create shareholder value by leveraging our competitive advantages while maintaining flexibility to respond to future policy changes and technology advances associated with the energy transition.”
Exxon believes their new plan will double their earnings by 2027.