Exxon Mobil

ExxonMobil has a target to achieve zero scope 1 and 2 emissions by 2050, with an interim target of 50% reduction by 2030. It is unclear if ExxonMobil will use offsets to achieve these targets. The company has not set any targets to reduce its scope 3 emissions, despite these representing about 87% of its total emissions. The company has also not committed to setting any scope 3 targets in the future. ExxonMobil should set comprehensive targets that include all of its emissions, and it should support these further with interim targets no more than five years apart to incentivise near-term actions on its long-term goals.

ExxonMobil continues to be a member of trade associations that hold a negative stance on climate policies, several of which the company assessed as aligned with its own policy positions. In 2021, the company reported giving USD 10-12.5 million in lobbying expenditure to American Petroleum Institute, which strongly opposed efforts to restrict further development of oil and gas in the US. ExxonMobil can increase its credibility by withdrawing membership from associations that oppose climate policies.

To avoid exceeding its 1.5°C carbon budget, Exxon Mobil needs to cease all exploration for new oil and gas fields and limit production from existing fields and reserves. If the company utilises all of its current and approved fields and reserves, its emissions are expected to exceed its 1.5°C carbon budget by approximately 70% by 2050. This does not account for the development of new (unsanctioned) oil and gas fields. Despite this, ExxonMobil continues exploration for new oil and gas.

ExxonMobil plans to invest USD 17 billion in less carbon-intensive initiatives between 2022 and 2027. However, this amounted to less than 15% of the company’s total CapEx in 2022. Such a small share of total CapEx is unlikely to drive a major shift to a low-carbon business model. Additionally, the company does not provide sufficient details of these solutions to assess their alignment to a low-carbon transition. ExxonMobil is investing more money to grow oil and gas production than any other US company. The company should limit its investment in oil and gas and dedicate the majority of its CapEx to low-carbon products.

ExxonMobil is targeting a 20-30% reduction in its operational emissions by 2030 and intends to achieve zero scope 1 and 2 emissions by 2050. The company is also aiming for a 40-50% reduction in methane intensity and a 70-80% reduction in flaring intensity by 2030. However, the company has not set any targets to reduce its indirect (scope 3) emissions, despite it representing about 87% of its total emissions.

ExxonMobil is dedicating USD 17 billion to lower-emission activities between 2022 and 2027. The company is investing in biofuels, hydrogen and carbon capture and storage (CCS) and is planning to expand biofuel production to 200,000 barrels per day by 2030. However, this is meagre in comparison to ExxonMobil’s total refinery throughput of over four million barrels per day in 2022. Additionally, the company does not provide sufficient details for these activities to enable an assessment of their alignment with the low-carbon transition. The company has not set long-term performance indicators for alternative business models outside of biofuels, nor has it disclosed actions that will significantly impact its scope 3 emissions.

In 2022, ExxonMobil achieved its highest refinery throughput since 2007 and prepared to bring 250,000 barrels per day of expanded refining capacity into service in early 2023. Increasing the production of fossil fuel products is not in line with the company’s decarbonisation pathway. Moreover, ExxonMobil does not disclose how much of its R&D spending is dedicated towards low-carbon technologies.

ExxonMobil’s scope 1 and 2 emissions intensity is estimated to have decreased only marginally between 2017 and 2022. However, to align with its 1.5°C pathway, ExxonMobil needs to annually decrease its scope 1 and 2 emissions intensity by approximately 8% and its scope 1, 2 and 3 emissions intensity by approximately 4%. The company has also significantly increased production volumes in Guyana and the Permian Basin by 30% in 2022 compared to 2021.

ExxonMobil’s climate strategy lacks comprehensive targets and focuses on less mature technologies like CCS and hydrogen but lacks clear roadmaps to scale these. The company continues exploration for new oil and gas fields, even though it is already predicted to exceed its 1.5°C carbon budget. Academics have documented evidence that suggests ExxonMobil misled the public in the past on climate science. The company’s reputational incidents bring into question the credibility of its plans for a low-carbon transition.

No evidence was found of the company’s commitment to social dialogue or of the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders. No evidence was found of the company undertaking just transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in just transition planning.

No public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s actions to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks. The company discloses the actions it takes to provide training and educational opportunities for workers and affected stakeholders. For instance, it offers training programmes to workers and works to engage local students in relevant training. Furthermore, the company discloses the measures it takes to embed equality of opportunity for women and vulnerable groups in these actions. It does this through targeted development programmes, such as offering coaching and additional networking opportunities for black employees. However, no evidence was found of the company having a process for identifying skills gaps for workers and stakeholders affected by the low-carbon transition or a public commitment to help workers displaced by the transition to re- or up-skill.

No relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders.

The company describes its processes to identify human rights risks in its own operations and through its business relationships. It also offers a grievance mechanism to its workers. However, no other company commitments or policies related to human rights were found in the public domain.

The company is committed to the health and safety of its workers and discloses how it monitors health and safety in its business relationships. It also discloses some data on the diversity of its workforce. However, the company can strengthen its disclosure and performance on many decent work issues, such as the actions it takes to ensure that workers are fairly remunerated and have a meaningful say in decision-making.

The company has public commitments to protect personal data and prohibit bribery and corruption. Furthermore, it discloses its process for identifying bribery and corruption risks in its own operations, and it includes anti-bribery and anti-corruption clauses in its business relationship contracts. However, the company can strengthen its performance and disclosure on several ethical business topics, including tax, lobbying and political engagement.