Exxon Mobil Corporation | Remove GHG emissions reduction targets at Exxon Mobil Corporation

Status
Omitted
AGM date
Resolution details
Company ticker
XOM
Lead filer
National Legal and Policy Center
Resolution ask
Other ask
ESG theme
  • Environment
ESG sub-theme
  • GHG targets / emissions
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Energy
Company HQ country
United States
Resolved clause
Shareholders request the Company to remove all emissions reduction targets covering
greenhouse gas emissions from the Company’s operations and energy products.
Whereas clause
An alleged “scientific consensus”1 2 claims anthropogenically driven climate change
will result in catastrophic impacts to the environment, to the planet, and to humans. However,
research increasingly shows worst-case scenarios are unlikely, and the potential consequences of
carbon dioxide emissions (aka “plant food”) have been greatly overstated.3
Corporate greenhouse gas (GHG) emissions reduction targets are usually guided by the Paris
Agreement, which is heavily informed by the Intergovernmental Panel on Climate Change.4
These targets are neither legally binding nor legitimized by scientific evidence.
Hydrocarbons are reliable and cost-efficient. Renewable energy will not replace hydrocarbons in
the near future, if ever.5 Competitors of Exxon Mobil Corporation (“ExxonMobil” or the
“Company”) are betting big on continued demand for oil and gas.6
Supporting statement
ExxonMobil’s attempt to play both sides of the climate change debate is untenable. The Company has adopted greenhouse gas (GHG) emissions reduction targets7 8 for its scope 1 and 2 emissions – which only cover its own operations – under the auspices of aligning with an activist-driven climate agenda, which lacks a basis in definitive, observable and actionable science. Yet ExxonMobil’s 2024 Global Outlook projects oil and gas demand to be higher in 20509 – which it undoubtedly expects to play a continued role in supplying. Somehow, the Company also projects global emissions will go down.10 Further, the Company states:11 ExxonMobil has supported the goals of the Paris Agreement since its inception and has consistently voiced support for U.S. participation in the agreement. We have also actively engaged with government officials to encourage remaining in the Paris Agreement. These “goals” include a rapid phaseout of oil and gas in favor of lower emission forms of energy, such as wind and solar.12 13 Thus, ExxonMobil’s embrace of politically-driven climate alarmism will diminish shareholder resources both in the short and long runs. The Company has only two paths to reduce greenhouse gas emissions: investing in carbon capture and storage technology, or reducing oil and gas production.14 CCS projects are unprofitable without government subsidies,15 16 whose continuation is in doubt in their current form under the new presidential administration.17 That leaves the Company with one path: reduction of oil and gas investment. ExxonMobil has always been an oil and gas company. Reducing production would harm shareholders’ investment. Contrarily, ExxonMobil recently completed a $59.5-billion acquisition of Pioneer Natural Resources Company,18 which signals that the Company does not take its emissions reduction rhetoric and actions seriously, as it plans to double-down on oil and gas production. If ExxonMobil sincerely believed in the necessity of an energy transition,19 20 it would not stake its future on a massive long-term bet on oil and gas.

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