Exxon Mobil Corp., under increasing pressure from investors and climate change activists, reported for the first time the emissions that result when customers use its products such as gasoline and jet fuel.
The largest U.S. oil producer said the emissions from its product sales in 2019 were equivalent to 730 million metric tons of CO₂, higher than rival oil majors. The data comes as the company has drawn the ire of an activist investor focused on its climate performance.
The so-called Scope 3 data is included in its latest Energy & Carbon Summary released Jan. 5, though Exxon Mobil downplayed its significance. "Scope 3 emissions do not provide meaningful insight into the Company's emission-reduction performance," the report said. (Report: https://exxonmobil.co/3hL6Tmo)
RELATED:
Oil Major Exxon Mobil Boosts Emissions Reduction Target for 2025
"Even to get to the point of having them disclose this has been like pulling teeth," said Andrew Grant at think tank Carbon Tracker Initiative. "Quite a lot of the rest of the world has moved on from the disclosure to 'What are we going to do about this?'"
Most major oil companies already report Scope 3 emissions and some have reduction targets, including Occidental Petroleum Corp., which in November set a goal to offset the impact of the use of its oil and gas by 2050.
Exxon Mobil said it made the disclosure due to investor interest.
"They’re seeking dollars against companies that are disclosing Scope 3," said Danielle Fugere, president of As You Sow, a non-profit shareholder activist group. "I don't think they have any choice."
By 2025, Exxon Mobil targets reducing the intensity of its oilfield greenhouse gas emissions. It has not set an overall emissions target, though, so emissions could rise if production grows.
Last month, activist firm Engine No. 1 called for expanded spending and pay cuts, a board shake-up and shift to cleaner fuels. Its views are supported by California State Teachers' Retirement System, the Church of England, and echoed in part by hedge fund D.E. Shaw, which has $50 billion under management.
Recommended Reading
ProPetro Acquires Silvertip, Creates Completions-focused Oilfield Services Company
2022-11-02 - The transaction offer between ProPetro and Silvertip included 10.1 million shares of ProPetro common stock, $30 million in cash and $7 million in assumed debt.
Kongsberg Digital to Digitalize SOECHI Line's Fleet
2022-10-27 - SOECHI Lines hopes to operate in a safer and more sustainable manner through the implementation of Kongsberg Digital's Vessel Insight system.
SLB to Boost Well Construction Business with Gyrodata Acquisition
2022-10-27 - SLB, formerly Schlumberger, said in an Oct. 26 release it plans to integrate Gyrodata’s wellbore placement and surveying technologies within SLB’s well construction business.
Proserv Acquires Stake in Power System Monitoring Expert Synaptec
2022-09-29 - After establishing a working relationship through the development of the ECG system in 2020, Proserv acquired a stake in Synaptec and will add its CEO to Synaptec's board of directors.
Schlumberger Awarded Energy Data Project from Wintershall Dea
2022-09-22 - The deployment of Schlumberger and Microsoft's OSDU data platform will accelerate time-to-value and break data silos, according to Wintershall Dea.