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Exxon promises to reduce greenhouse gas emissions and end flaring by 2030

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Responding to pressure from activists and investors to reduce carbon dioxide emissions, we promise to reduce greenhouse gas emissions from our businesses over the next five years and eliminate routine methane flaring by 2030. Did.

A major Texas oil company announced on Monday that it would reduce the “strength” of oil and gas production emissions by 15% to 20% by 2025. These reductions did not provide accurate figures for total emissions. Represents.

The company also said it would end regular flaring or venting of methane from oil and gas operations by the end of the next decade. According to the Environmental Protection Agency, methane, like carbon dioxide, is a powerful greenhouse gas that contributes to climate change.

The goal is related to emissions directly from Exxon’s business, not from products such as gasoline and jet fuel. Exxon said it will begin disclosing emission data related to its products next year.

“We respect and support society’s ambition to achieve net zero emissions by 2050 and advocate policies that promote cost-effective market-based solutions to address the risks of climate change. “We will continue to do so,” said Darren Woods, CEO of Exxon.

The goal has not reached the pledge of reaching zero net carbon emissions by European peers, including BPPLC and Royal Dutch Shell PLC. This is an initiative that Mr. Wood used to call a “beauty contest.”

Exxon announced on Monday that it would reduce methane emission intensity by 40% to 50% and flare intensity by 35% to 45% by 2025. The company said these goals were in line with the Paris climate agreement that President Trump withdrew from the United States. Exxon says it supports it.

New activist investors began a proxy battle with Exxon last week, arguing that embarrassed energy giants need to act faster to reshape themselves and invest in clean energy.

Engine No. 1, a sustainability-focused investment firm, said in a letter to Exxon that it would invest heavily in clean energy to benefitably meet its emission reduction targets. He said he needed to consider. The letter also asserts cost savings and other changes, identifying four people that the company will nominate to Exxon’s ten board of directors.

Exxon said he would meet with investors on a regular basis, but would not provide details of any particular conversation.

Some of Exxon’s largest investors have been pushing the company on climate-related issues for years.Black lock Co., Ltd.

He has a history of choosing Exxon as moving slowly to address climate risks, and voted against two Exxon directors earlier this year in favor of separating the roles of chairman and CEO. Directors were elected and roles were not separated.

Exxon’s director of greenhouse gases and climate change, Peter Trellenberg, said in a call to reporters Monday that the goal was a product of Exxon’s annual planning and budgeting process. He did not suggest a new investment in clean energy.

Trellenberg said the new intensity target would result in an overall reduction in Exxon’s carbon emissions, but did not provide specific data. Reducing emission intensity generally means reducing emission intensity for each amount of energy produced, but if the company produces more oil and gas in total, then You can increase emissions as a whole.

Mr. Trellenberg also said that Exxon only controls emissions from its business, so it has not set a goal of reducing emissions from its products, called Scope 3 emissions.

“Scope 3 will be a function of how society decides to reduce emissions throughout its energy system,” he said.

Exxon said Monday that it would continue to incorporate environmental performance into executive compensation and help price carbon.

In 2018, Exxon set a goal of reducing methane emissions by 15% from 2016 levels and flaring by 25% by the end of 2020. He said he is on track to reach these goals.

Write to Christopher M. Matthews (christopher.matthews@wsj.com)

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Exxon promises to reduce greenhouse gas emissions and end flaring by 2030

Source link Exxon promises to reduce greenhouse gas emissions and end flaring by 2030

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