Report Jan. 5, 2021
Signposts for the evolving energy landscape
Report Jan. 5, 2021
Signposts for the evolving energy landscape
Changes in the relative cost of new technologies compared to existing or alternative energy sources may further increase shifts in the global energy mix. Using Company and third-party sources, ExxonMobil monitors a variety of signposts that may indicate a potential acceleration in shifts to the energy landscape. They include:
- New, more ambitious NDCs, along with broad implementation of significant policy and regulatory initiatives, such as carbon pricing.
- Increasing electrification of energy systems and technology developments that reduce costs and increase reliability of energy storage.
- Development of scalable alternative energy technologies such as advanced biofuels, leading to displacement of gasoline and distillate in the fuels market.
- Advances in CCS technology to lower cost and enable low-carbon hydrogen production.
- Advances in significant new capacity expansions of multiple technologies, as well as the associated financing.
Use of sensitivity analysis
ExxonMobil uses sensitivity analyses to provide greater perspective on how variations to its Outlook for Energy assumptions could affect projected energy supply and demand. The analyses for these sensitivities involve assessing technology advancements and the potential impact on energy supply and demand, resulting in a range of potential low- to high-demand outcomes for certain energy sources. The projections in the sensitivity analyses do not represent the Company's viewpoint or the likelihood of these alternatives, but can provide context to its analysis.
Recent sensitivities included light- and heavy-duty vehicles and natural gas for electricity and power generation, which ExxonMobil has included in its 2019 Outlook for Energy and 2020 Energy & Carbon Summary.
Indicators for a 2°C pathway
Continued transition of the energy system will provide important indicators on whether society is successfully moving toward a 2°C scenario. The following illustrates the progress made from 2010 to 2018 toward that objective by 2040.
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Developing and deploying scalable technology solutions
Energy and Carbon Summary Report • Jan. 5, 2021
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.Energy and Carbon Summary Report • Jan. 5, 2021
The Energy & Carbon Summary is aligned with the core elements of the TCFD framework
ExxonMobil's Energy & Carbon Summary is aligned with the core elements of the framework developed by the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD), designed to encourage the informed conversation society needs on these important issues.Energy and Carbon Summary Report • Jan. 5, 2021
Executive summary
ExxonMobil has a long history of responsibly meeting society‘s evolving need for energy in a reliable and sustainable manner. With a longstanding commitment to investments in technology and the ingenuity of its people, the Company is well positioned to continue to provide the energy that is essential to improving lives around the world, while managing the risks of climate change.
Energy and Carbon Summary Report • Jan. 5, 2021
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.Energy and Carbon Summary Report • Jan. 5, 2021

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.
Energy and Carbon Summary Report • Jan. 5, 2021