ExxonMobil – Greenhouse Gas Emissions Reduction (2007)
ExxonMobil Corp. “is the world’s largest petroleum and petrochemical
enterprise,” and “largest net producer of hydrocarbons in Europe”;
“ExxonMobil recognizes that the impact of greenhouse gas emissions [GHG] on society and ecosystems may prove to be significant”;
ExxonMobil faces potential strategic challenges from “the competitiveness of alternative hydrocarbon or other energy sources” (2006 10K);
Leaders of 25 corporations, including KLM, Statoil, GE International, and Shell UK, wrote European Commission President Barroso (11/27/06) urging “policy inconsistencies and perverse incentives that undermine the effectiveness of climate policy should be eliminated…” and “that scientific opinion across the world is virtually unanimous in agreeing on the urgent need to stabilize the concentration of atmospheric greenhouse gases at a sustainable level”;
Claude Mandil, Executive Director of the International Energy Agency, noted that “…the benefits of strong, early action on climate change outweigh the costs. That conclusion is one that the IEA fully endorses – notably in its World Energy Outlook 2006.” “The world’s energy economy is on a pathway that is plainly not sustainable” (FT Energy Special 10/20/06);
ExxonMobil operates in about 200 countries, many having ratified the Kyoto Protocol that obliges Annex I signatories (industrialized countries) to reduce national GHG emissions below 1990 levels by 2012;
According to ExxonMobil’s 2006 Carbon Disclosure Project response, from 2003 to 2005, the Company’s global carbon dioxide (CO2) equivalent emissions increased;
ExxonMobil reported that operational emissions were a fraction of those caused by use of its product: 15 tons of CO2 for every 100 tons emitted by product users (CDP4);
A 2003 Climate Mitigation Services study by Richard Heede estimated ExxonMobil’s emissions of CO2 and methane from the founding of precursor Standard Oil Trust in 1882, to 2002. During that period, the combustion of ExxonMobil-produced fuels resulted in approximately 20.3 billion tons of carbon emissions, estimated to be 4.7% -5.3% of global CO2 emissions;
While ExxonMobil has made incremental improvements in energy efficiency and emissions reductions (through cogeneration, advanced lubricants, flaring reductions, and carbon capture), it has underinvested in low-GHG emissions businesses and technologies. As of Fall 2005, ExxonMobil had contributed a mere $8.9 million to the Stanford Global Climate and Energy Project, its most touted climate investment. This represents .003% of the 2006 commitment made by Virgin’s Richard Branson ($3 billion) and .0008% of ExxonMobil’s 3rd Q 2006 earnings. The Company’s oil and gas investments averaged $50 million per day in 2005 alone;
ExxonMobil has set an initial goal to improve energy efficiency by 10% by 2012 across its U.S. refining operations, but this goal does not address GHG emissions, nor does it cover overall operations or products.
Shareholders request that the Board of Directors adopt quantitative goals, based on current technologies, for reducing total greenhouse gas emissions from the Company’s products and operations; and that the Company report to shareholders by September 30, 2007, on its plans to achieve these goals. Such a report will omit proprietary information and be prepared at reasonable cost.