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Exxon considers pledging net zero carbon by 2050: WSJ

By Ishika Dangayach on Aug 05, 2021 | 05:35 AM IST

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Exxon Mobil Corp. is considering making a pledge to decrease its net carbon emissions to zero by 2050, WSJ reported. 

The news comes more than two months after Exxon lost three board seats to the hedge fund Engine No. 1 at its annual shareholder meeting in May, arguing that the oil corporation has to act quickly to reinvent itself and invest in renewable energy.

According to the report, Exxon has not made a final judgment on the net-zero pledge. It went on to say that the business intended to reveal a series of strategic initiatives on environmental and other concerns by the end of 2021.

Casey Norton, an Exxon spokeswoman, stated that the corporation is dedicated to trying to decarbonize high-emitting industries and supports regulations that would encourage this.

“As the board goes through its deliberations regarding future plans related to the company’s energy transition activities, we routinely evaluate our work and commitments and will update our shareholders and the public as those plans evolve,” Norton said, WSJ reported.

Exxon presently aims to lower its methane emissions intensity by 40 percent to 50 percent and its flaring intensity by 35 percent to 45 percent by 2025, resulting in a 30 percent reduction in overall emissions from production, as part of a strategy that will be completed by then.

There are no common criteria for how corporations define net-zero emissions and specifications frequently differ, leading some to dismiss the pledge as modern-day image management exercises. In general, such objectives seek to reduce a company's carbon footprint to zero in the future, the report said.

Meanwhile, Exxon has five new board members as a result of the historic proxy battle. Exxon also nominated two new directors as part of a separate settlement with the hedge firm D.E. Shaw, in addition to the three Engine No. 1 nominees.

The developments come as the Biden administration focuses more on how companies adapt to climate-related risks.

Earlier this year, European oil giants, including RoyalDutch Shell Plc and BP Plc announced a public pledge to decrease emissions from their operations and assets that they own but do not operate to zero. Shell has also set a net-zero emission objective for its products.

Chevron Corp. and several other major oil companies in the United States have likewise avoided making net-zero pledges.

Picture Credits: FT

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