Proactively engaging on climate-related policy

Report Jan. 5, 2021

Proactively engaging on climate-related policy

ExxonMobil engages on policy directly, through trade associations and focused industry collaboration efforts, such as the Oil and Gas Climate Initiative. Policy solutions to address climate change should be balanced, recognizing the increasing global demand for affordable energy, which is vital to addressing global poverty, education, health and energy security. Access to modern energy is closely correlated to increased life expectancy, reduced poverty and malnutrition, and higher levels of childhood education. 

Given this dual challenge, the Company encourages sound policy solutions that reduce climate-related risks across the economy at the lowest societal cost. Company policy positions are clear and transparent, and lobbying efforts are consistent with these positions.

ExxonMobil has monitored developments in science over the last four decades and surveys the evolving scientific literature. ExxonMobil's engagement with the scientific and policy community on climate science has been ongoing and collaborative. The Company's scientists, engineers and other experts have participated on such efforts for decades, including the Intergovernmental Panel on Climate Change (IPCC) since its inception in 1988, and have co-authored chapters of IPCC scientific reports. The Company's public policy experts have contributed to the development of sound policy solutions at national and international levels. 

The Company actively engages on policy at the domestic and global level to inform business planning and to assist policymakers seeking expertise about energy markets and technology. ExxonMobil has supported the Paris Agreement since its adoption, and offers to assist policymakers addressing the gaps between the policies called for under current Nationally Determined Contributions and the ultimate goals of the Paris Agreement as part of the 26th United Nations Climate Change Conference in 2021.

For more than a decade, ExxonMobil has supported an economy-wide price on CO2 emissions as an efficient policy mechanism to address greenhouse gas emissions.

ExxonMobil is a part of the Oil and Gas Climate Initiative (OGCI), a voluntary effort representing 12 of the world’s largest oil and natural gas producers working collaboratively to mitigate the risks of climate change. OGCI is a CEO-led organization focused on developing practical solutions in areas including carbon capture and storage, methane emissions reductions, and energy and transportation efficiency.

Attributes of sound policy

  • Promote global participation
  • Let market prices drive the selection of solutions
  • Ensure a uniform and predictable cost of GHG emissions across the economy
  • Minimize complexity and administrative costs
  • Maximize transparency
  • Provide flexibility for future adjustments to react to developments in technology, climate science and policy

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Mitigating emissions in Company operations

ExxonMobil has a robust set of processes to improve energy efficiency and mitigate emissions, including programs focused on reducing methane emissions, flaring and venting. These processes include, where appropriate, setting tailored objectives at the business, site and equipment level, and then stewarding progress toward meeting those objectives. This rigorous approach is effective to promote efficiencies and reduce greenhouse gas emissions in operations while striving to achieve industry-leading performance. 

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Governance

Strong governance is essential to the long-term viability of ExxonMobil's business. Within the Company's robust governance framework, a rigorous risk management approach is applied to identify and address risks associated with its business, including the risks related to climate change. 

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Scope 3 emissions

ExxonMobil has publicly reported the Company’s Scope 1 and Scope 2 greenhouse gas emissions data for many years. The 2025 emission reduction plans are based on Scope 1 and Scope 2 emissions and are projected to be consistent with the goals of the Paris Agreement.

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