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090SMU

EXXONMOBIL: IS CHASING NET ZERO FUTILE?

In September 2023, the global energy landscape was changing gradually. Most companies in the
energy industry were implementing pivots in their businesses to attain energy transition, and slowly
switching to renewables. Consumers of fossil fuel-produced energy were also gradually embracing
renewable energy sources, sustainable practices, and carbon reduction goals. It was in the context of
this shifting environment that Darren Woods, CEO of ExxonMobil (Exxon), a global oil and gas
conglomerate, shared his thoughts about energy transition with McKinsey Quarterly. He explained,

There are three key elements. First is size. I think people don’t fully appreciate the magnitude of
today’s existing energy system. On the oil demand side, there are about a hundred million barrels
of oil a day. If you convert gas to equivalent barrels a day, it’s 70 million barrels — so 170
million barrels a day of demand. It’s hard to get your mind around just how big that is. It’s an
enormous system that today we’re looking to transform, and I don’t think people fully appreciate
just how big a job that’s going to be. The second is the critical role the energy system plays in
supporting economic growth and people’s living standards. There are still almost a billion people
living in energy poverty. Third, the vital role oil and gas play in the energy system because of
their characteristics: energy dense, transportable, and extremely available. That brings a level
of convenience, reliability, and affordability that is hard to replace.

So when you think about an energy transition and replacing the size, the utility, the need, and
then the effectiveness of today’s energy system with something new, it is challenging. Given the
size and the complexity, it will be a transition that has to be managed thoughtfully and carefully
over many decades. For every barrel or tonne of natural gas we produce, we’ve got to find a new
replacement to maintain the level of supply and, at the same time, make the investments to
transition. Striking a balance between continuing to do what the world needs with today’s energy
system, while working to develop the technologies and drive down the cost of transitioning to a
lower-emissions energy system, is critical.1

A few years earlier, the oil market’s collapse during the COVID-19 pandemic had marked Exxon’s
first annual loss in four decades. Share prices had plummeted, and Exxon was ousted from the Dow
Jones Industrial Average index, in which it had held a position for nearly a century.

While many competitors were divesting from fossil fuel investments, Exxon had doubled down on
its commitment to the sector, leading shareholders to express concerns about its financial
performance and its continued reliance on traditional oil and gas extraction.2 However, in 2021, as
a war in Ukraine bolstered oil and gas prices, Exxon staged a recovery and refocused its discussions
around addressing global warming and energy security. Contrary to some oil and gas companies
which had begun shifting their focus to renewable energy, Exxon remained committed to its
established core operations, while implementing Net Zero goals, and low-carbon solutions including
hydrogen, carbon capture and storage, and lower-emission fuels.3

In 2022, the company reported record profits, and implemented a US$15 billion multi-year
restructuring plan that aimed at reducing emissions from its core operations.4 However, given its
strategy, could Exxon continue to remain relevant in a transitioning sector?

This case was written by Professor Patrick Tan, Lipika Bhattacharya, Professor Gary Pan, and Professor Yuanto Kusnadi, at
the Singapore Management University. The case was prepared solely to provide material for class discussion. The authors
do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised
certain names and other identifying information to protect confidentiality.

Copyright © 2024, Singapore Management University Version: 2024-03-30

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SMU-23-0035 ExxonMobil: Is Chasing Net Zero Futile?

Exxon

Exxon had played a pivotal role in the global energy industry for over three centuries. Its roots could
be traced back to 1859, when Colonel Edwin Drake and “Uncle” Billy Smith drilled the first
successful oil well in Titusville, US, and formed a company named Vacuum Oil. The company was
later acquired by Standard Oil, founded by John D. Rockefeller in 1879, which went on to monopolise
the American oil industry. The monopoly was vehemently opposed by market competitors and a few
decades later led to the antitrust actions of 1911, following which Standard Oil was broken up into
34 independent companies. Among these was Standard Oil New Jersey, which later became Exxon,
and the Socony Vacuum Oil Company, which eventually became Mobil.5

Both Exxon and Mobil operated as major players in the energy sector independently for most of the
20th century. They explored, produced, and refined oil and marketed a wide range of petroleum
products. In 1999, they made history with a merger, forming ExxonMobil Corporation (Exxon). This
merger created one of the largest publicly traded companies in the world, with a global reach and
influence.6

Exxon’s journey didn’t stop with the merger. The 21st century brought new challenges, particularly
concerning environmental and climate issues. The company faced criticism and legal challenges
related to its stance on climate change, with allegations of funding climate change denial campaigns.
Despite the challenges, the company continued to remain profitable, and in 2022, reported US$414
billion in revenues and US$62 billion in net profits (refer to Exhibit 1 for Exxon’s revenue graph).7
By then, the company operated in more than 60 countries with over 62,000 employees globally.8

Exxon’s Climate Issues

In the early 2000s, environmental groups and activists had started campaigning against Exxon’s
climate change policies. Exxon made news in September-October 2015 when research produced by
Inside Climate News, the Los Angeles Times, and the Columbia Graduate School of Journalism
revealed that the firm had known about the causes of climate change and the dangers climate
disruption posed since the 1970s. The articles spurred a wave of actions against Exxon. 9 The
adoption of the Paris Agreement in 2015, which set global goals to limit global warming, added to
the pressure the company faced to align its actions with the agreement’s objectives.10

Exxon began facing legal challenges and investigations related to its knowledge of climate change
risks and its public statements. 11 In November 2015, the New York State Attorney general
announced an investigation into Exxon for disclosure violations. Presidential candidates Hillary
Clinton and Bernie Sanders called for a federal investigation into the company. More than 350,000
Americans also joined that call, petitioning the Department of Justice to investigate the allegations.12
Institutional investors and large asset managers like BlackRock started engaging with Exxon and
other fossil fuel companies, pressing them to be more transparent about climate-related risks and to
take climate-conscious actions.13

It was amidst this challenging phase that the leadership of Exxon also changed. This was because in
2016, Rex Tillerson, who had served as its CEO, was appointed as the US Secretary of State. 14
Darren Woods succeeded Tillerson and went on to adopt a more conciliatory approach towards
climate issues.15 He recognised the need to adapt to the new reality and publicly endorsed the Paris
Climate Accord – a legally binding international treaty on climate change.16

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SMU-23-0035 ExxonMobil: Is Chasing Net Zero Futile?

Exxon’s shareholders as well as its major investors also started raising concerns over the risks faced
by companies whose assets were based on fossil fuels, particularly when these assets could lose
significant value as climate policies and market forces reduced demand.17 Soon after, shareholder
resolutions regarding climate-related risks and transparency began appearing on Exxon’s annual
meeting agendas. These resolutions gained traction and started receiving more support from
institutional investors.18 Thereafter, Exxon engaged in public relations efforts to improve its image
on climate issues. This included advertising campaigns highlighting its commitment to reducing
greenhouse gas emissions and developing cleaner technologies.19

The company also invested heavily in research and development of lower-emission technologies,
biofuels, and carbon capture and storage (CCS) projects. It set targets to reduce the carbon intensity
of its operations and emissions and started diversifying its portfolio by investing in alternative energy
sources like natural gas, and to a much lower extent, renewable energy.20

Globally, by 2018, public awareness of climate change and its environmental consequences grew,
with documentaries like “An Inconvenient Truth” and high-profile reports from organisations like
the Intergovernmental Panel on Climate Change (IPCC). 21 Climate marches, strikes, and public
protests, led by activists like Greta Thunberg, garnered significant attention and increased public
pressure on governments and corporations to take climate related action.22

The fossil fuel divestment movement also gained momentum, with universities, pension funds, and
other institutions contemplating or implementing divestment from companies involved in fossil fuel
like Exxon.23 Threatened by such trends, many oil and gas companies started diversifying their
portfolios and embarked on the path of energy transition. Amidst this transitioning phase, the future
of oil and gas was becoming fraught with uncertainties (refer to Exhibit 2 for more information on
The Future of Oil and Gas).

Exxon’s Net Zero Goal

In January 2022, Exxon announced its ambition to achieve net zero greenhouse gas emissions for
operated assets by 2050, backed by a comprehensive approach to develop detailed emission-
reduction roadmaps for major facilities and assets.24 To attain its goal of Net Zero, the company
identified more than 150 potential steps and modifications that could be applied to assets in its
upstream, downstream, and chemical operations. 25 These included specific short-term and
intermediate targets aimed at decreasing the greenhouse gas emission intensity, implementing energy
efficiency measures, and addressing methane emissions. Other high-impact reduction strategies
included power and steam co-generation and electrification of operations, using renewable or lower-
emission power sources (refer to Exhibit 3 for Exxon’s Net Zero Goals).26

Towards this end, the company budgeted more than US$15 billion in investments (between 2022 and
2027) and formulated detailed roadmaps that addressed all operations-related greenhouse gas
emissions. A significant share was allocated to scaling up carbon CCS, hydrogen, and biofuel
solutions.27

The Net Zero goals applied to Scope 1 and Scope 2 greenhouse gas emissions,28 with a key focus on
reaching Net Zero emissions in the Permian Basin operations by 2030. 29 Exxon had extensive
operations in the US, including the Permian Basin in Texas and New Mexico, where it was a major
player in the shale oil industry. The Permian Basin was one of the largest and most productive oil
regions in the US.

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SMU-23-0035 ExxonMobil: Is Chasing Net Zero Futile?

Exxon’s emission-reduction plans were consistent with the Paris Agreement-aligned pathways, and
other climate accords like the US and European Union’s Global Methane Pledge, and the US
Methane Emissions Reduction Action Plan. Beyond Net Zero goals for operated assets, Exxon also
worked with its equity partners to advance greenhouse gas reductions for non-operated assets to
achieve comparable results. The ambition was to also address emissions resulting from the use of its
products by customers, often referred to as Scope 3 emissions.30

Carbon Capture and Storage

One of the key strategies employed by Exxon to reduce emissions was using carbon capture to offset
emissions. Exxon had started focusing on carbon capture as early as the mid 1990’s.31 In 1996,
Exxon, in partnership with the French energy company Total, had started capturing carbon after
Norwegian authorities introduced a CO₂ emission fee that made it more profitable to capture and
store carbon than to pay the emission fee.32,33

In 2008, Exxon built a plant in LaBarge, Wyoming with a capacity of capturing nearly four million
metric tonnes of carbon34. By 2021, this was capturing seven million metric tons of carbon a year
and was considered one of the largest industrial carbon capture facilities in the world.35 The facility
was expected to produce an additional 1.2 million metric tonnes a year by 2025.36

By 2021, Exxon established several carbon capture facilities in the US and created a new business
‘ExxonMobil Low Carbon’ solution to commercialise its extensive experience in carbon capture.
The plan for the new business was to initially focus on CCS and then forge other low-carbon
opportunities to enable large-scale emission reductions.37

In 2022, the CCS business was extended across Canada, Netherlands, Belgium, Australia, Indonesia,
US Gulf Coast, Scotland, France, Qatar, Singapore, Malaysia, and China through multiple new
projects and commercial partnerships that could demonstrably reduce emissions from the company’s
own operations, as well as those from other industrial, power generation, and commercial
transportation partner companies. An investment of US$3 billion was also made towards expanding
carbon capture solutions by 2025.38

Additional CCS projects were also implemented in the UK and Indonesia. The company partnered
with Solent University and the University of Southampton in the UK to reduce carbon emissions
from industry, transportation, and households across Southern England. In Indonesia, Exxon
partnered with state-owned energy company Pertamina to progress a CCS hub in Java.39

By 2023, Exxon had become the first company to capture more than 120 million tonnes of carbon
(equivalent to the emissions of more than 25 million cars for one year), established more than 1,500
miles of carbon pipeline, and owned and operated the largest network in the US with more than 15
onshore sites for carbon storage.40

Exxon also partnered with other companies to expand its business in carbon capture. For example, it
collaborated with Fuel-Cell Energy to improve the efficiency, effectiveness, and affordability of
carbon capture through research into a novel technology that used proprietary carbonate fuel cells to
concentrate CO₂ from large-scale industrial and power plants. 41,42 The company had also started
exploring options to conduct a pilot test of next-generation fuel cell carbon capture solutions at one
of its operating sites. In another example, Exxon partnered with Mitsubishi Heavy Industries (MHI)
to deploy the latter’s carbon capture technology as part of its end-to-end CCS solution for industrial
customers.43

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SMU-23-0035 ExxonMobil: Is Chasing Net Zero Futile?

Hydrogen

Another key area in which Exxon tried to diversify was hydrogen production. Hydrogen was seen as
a promising clean fuel option for reducing carbon emissions in sectors where electrification was
challenging, such as heavy industry and long-haul transportation. Similar to carbon capture, Exxon
had conducted research and development in hydrogen for decades. Over the years, it had explored
various aspects of hydrogen production, storage, and utilisation, with the aim of advancing hydrogen
technologies and their commercial applications.44

In 2010, Exxon established a hydrogen production facility in Baton Rouge, Louisiana, in association
with Air Products in the US.45 The facility investigated various methods of hydrogen production,
including steam methane reforming (SMR) and electrolysis.46 SMR was a conventional method for
producing hydrogen from natural gas, while electrolysis involved using electricity to split water into
hydrogen and oxygen. The company also explored ways to reduce the carbon footprint associated
with hydrogen production.47

As of 2023, Exxon was one of the largest hydrogen companies in the world, producing more than a
million metric tonnes each year for use in its refining and chemical operations. It had also invested
in innovative ideas like the hydrogen highway — a blueprint for lower-emission transportation. The
project was a partnership with other industry players and the government to develop a network of
hydrogen fuelling stations for long-haul trucking along US Interstate 10.48

Other projects involving hydrogen included the construction of the world’s largest low-carbon
hydrogen plant in Baytown, Texas by 2027; and funding for Hydrogen4EU - a cross-sectoral research
project to help meet the European Union’s 2050 Net Zero targets.49

A key area of research in hydrogen was related to fuel cells, which were electrochemical devices that
could convert hydrogen into electricity with high efficiency. Fuel cells had applications in various
sectors, including transportation (e.g., fuel cell vehicles) and stationary power generation. Another
research focus was the integration of carbon capture and hydrogen production, which involved
capturing CO₂ emissions from industrial processes and then using them in conjunction with hydrogen
production, potentially reducing the carbon footprint of the entire hydrogen value chain.50

Reducing methane emissions

Other than investing in new opportunities, Exxon also implemented strategies to reduce emissions in
its operations on a large scale. A key initiative was to reduce methane emissions through a variety of
methods including leak detection, monitoring operations, improving facility designs, and enhancing
training programs for operations personnel.51

In March 2020, the company published a model framework for industry-wide methane regulations
to reduce methane emissions in all phases of production and across the natural gas value chain.
Towards this goal, it conducted more than 23,000 leak surveys on more than 5.2 million components
at more than 9,500 production sites. These actions reduced methane emissions in its operations by
approximately 40% compared to 2016, which equated to about 1.7 million metric tons of CO₂
equivalent.52

In March 2021, the company started using aerial leak-detection technology like handheld cameras to
improve the effectiveness and cost of methane emission monitoring.53 It also signed an agreement
with non-profit independent validator MiQ for methane certification for its natural gas produced at

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SMU-23-0035 ExxonMobil: Is Chasing Net Zero Futile?

Poker Lake facilities in the Permian Basin, New Mexico. In March 2022, Exxon announced its aim
to reach near zero methane emissions from operated oil and gas assets by 2030.54

Lower Emission Fuels

Exxon also implemented strategies to shift to lower-emission fuels in its production. The company
produced high-performance fuels and lubricant products and supplied nearly five million barrels of
transportation fuels per day. The company tried to shift the yield at 19 of its global refineries from
conventional fuels to biofuels (which emitted 70% less carbon). 55 In 2022, its majority-owned
affiliate, Imperial Oil Ltd., invested about US$560 million for the construction of the largest
renewable diesel facility in Canada. The project was expected to produce 20,000 barrels of renewable
diesel per day primarily from locally sourced feedstocks. This was expected to help reduce
greenhouse gas emissions in the Canadian transportation sector by about three million metric tonnes
per year.56

In addition, Exxon launched new product lines like Mobil EV to lower emission footprint of vehicles,
which consisted of high-performance fluids for gears, bearings, and thermal management in electric
vehicles. Exxon’s technical experience and relationships with vehicle manufacturers were considered
advantageous for lubricant sales growth in the rapidly evolving and growing electric automotive
segment.57

What Next?

The transformation of Exxon from a climate sceptic to a more climate-conscious company had been
a multifaceted process influenced by various internal and external factors. Firstly, the entire oil and
gas industry was undergoing a significant shift towards a lower-carbon future. This transition was
driven by a combination of factors, including the increasing demand for cleaner energy sources,
evolving consumer preferences, and a heightened focus on Environmental, Social, and Governance
(ESG) considerations. Companies within the industry recognised the imperative of addressing
climate change and reducing their carbon footprint.58

In response to external pressures, particularly from activist shareholders and environmental groups,
Exxon had initiated a series of measures to align with climate-conscious objectives. These efforts
included substantial investments in lower-carbon and alternative energy technologies, marking a
clear commitment to diversify and reduce its environmental impact. Funds were allocated for the
research and development of innovative technologies such as CCS, biofuels, and advanced energy
systems.

Furthermore, Exxon had set stringent emissions reduction targets, including commitments to
decrease methane emissions stemming from its operations, while also focusing on reducing energy
intensity. The company had made a significant commitment to transparency by pledging to report its
Scope 3 emissions, which encompassed emissions associated with the use of its products. This
reporting reflected a recognition of the company’s responsibility for the entire lifecycle of its
products, including the emissions generated when its products were consumed.

Exxon’s transformation towards climate consciousness underscored the broader industry trend
towards a greener future and reflected the growing importance of addressing climate change and
sustainability in the corporate world. But the reality, despite the positive changes, was difficult to
ignore. Woods was of the opinion that the transition would take time, and energy would continue to
grow with much fewer emissions associated with it. 59 He had spoken about challenges in

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SMU-23-0035 ExxonMobil: Is Chasing Net Zero Futile?

transitioning to a new energy system, focusing on the need for technology breakthroughs and a
carbon market to incentivise carbon reduction. He had also emphasised the role of transparent and
stable government policies to support the transition.60

Could the oil and gas industry continue to exist while reducing its impact on the environment? Could
Exxon continue to remain relevant with its existing stance on energy transition? Was chasing net-
zero goals and offsetting emissions enough to sustain the oil and gas giant over the long term?
Alternatively, did Exxon require a different strategy to remain relevant in the industry?

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SMU-23-0035 ExxonMobil: Is Chasing Net Zero Futile?

EXHIBIT 1: EXXON’S REVENUES

ExxonMobil's operating revenue from 2001 to

2022 (in million U.S. dollars) Revenue
500,000
450,000
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0

2013
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012

2014
2015
2016
2017
2018
2019
2020
2021
2022
Source: Authors own, generated from “Operating revenue of ExxonMobil from 2001 to 2022”, Statista, March
2023, https://www.statista.com/statistics/264119/revenue-of-exxon-mobil-since-2002/, accessed October 2023.

EXHIBIT 2: THE FUTURE OF OIL AND GAS

The oil and gas industry is at a crossroad. While it continues to be a major global energy source, its future
will depend on its ability to adapt to the changing climate landscape and the growing imperative to reduce
greenhouse gas emissions. The industry is likely to evolve, with companies diversifying their portfolios,
investing in cleaner technologies, and adapting to stricter regulations and market demands. The pace and
extent of this transition will vary by region and company, and the industry’s long-term viability will depend
on how effectively it navigates these challenges. Listed below are a few key points, that reflect future
predictions of the industry and some key charts that depict the reality versus the goals.

• Oil demand to fall to 21 million barrels per day in 2050.61

• Pivot towards gas could provide a lifeline for Big Oil.
• Cumulative emissions reduction by mitigation measure in the Net Zero Scenario,
2021-2050 (chart below).62
• Big oil companies pursue multiple avenues for energy transition (table below).63
• Governments are pivoting towards lower-emission sources triggered by the global energy
crisis, as well as policy emphasis on energy efficiency improvements and the rapid growth
in electric vehicle (EV) sales.
• Governments worldwide are implementing stricter environmental regulations and carbon
pricing mechanisms, which can impact the industry’s operations and profitability. These
regulations are expected to continue to evolve and become more stringent, pushing the
industry to reduce its emissions.
• For total oil demand to decline sooner, in line with the IEA’s Net Zero Emissions by 2050
Scenario (NZE Scenario), additional policy measures and behavioural changes would be
required. 64
• Renewables are seen as alternatives to fossil fuel, but face variability issues—sunlight and
wind are not constant, and their availability does not always align with energy demand. This

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SMU-23-0035 ExxonMobil: Is Chasing Net Zero Futile?

intermittency creates a need for energy storage solutions, and batteries are the most prominent
technology for this purpose. However, battery technology needs advancement in storage
technologies, policy support, etc., to make renewable energy a more reliable and sustainable
option in the future.65
ExxonMobil BP Chevron TotalEnergies Shell Eni Equinor Repsol
2050: Net 2050: Net 2050: Net 2050: Net 2050: Net 2050: Net 2050: Net
zero Zero Zero 2050: Net Zero Zero Zero Zero Zero
Net zero emissions in emissions emissions in emissions emissions emissions emissions emissions
operations operations target operations target target target target target
55%
reduction in
Carbon carbon
intensity of 100% by intensity by
products 50% by 2050 5% by 2028 60% by 2050 100% by 2050 40% by 2040 2050 2040
2025: US$ 3-4
Low 15 US$ billion per year 2021-24: 5.7 2021-26: 2021-25:
carbon billion over 6 2050: US$ 5 US$ 10 billion 2021: US$ 2-3 2021: US$ 2-3 billion British US$ 23 19.3 billion
investment years billion per year over 7 years billion per year billion per year pounds billion pounds

2025: 6 GW 2025: 6GW

Renewable 2025: 20 GW 2025: 35 GW 2030: 15 GW 2030: 12- 2030: 20
capacity 2030: 50 GW 2030: 100 GW 2050: 50 GW 16 GW GW
Source: “Big oil companies pursue multiple avenues for energy transition”, Global Data Energy, November 2022,
Big oil companies pursue multiple avenues for energy transition (offshore-technology.com), accessed October 2023,
and other Sources provided as endnotes.

EXHIBIT 3: EXXON NET ZERO TARGETS

Exxon’s goal was to achieve the following targets compared to 2016 levels:

• 20-30% reduction in corporate-wide greenhouse gas intensity and an absolute

reduction of approximately 20% (or approximately 23 million metric tonnes).
• 40-50% reduction in upstream greenhouse gas intensity and an absolute reduction of
approximately 30% (or approximately 15 million metric tonnes).
• 70-80% reduction in corporate-wide methane intensity.
• 60-70% reduction in corporate-wide flaring intensity.

Source: Company Website

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SMU-23-0035 ExxonMobil: Is Chasing Net Zero Futile?

References
1 Thomas Hundertmark, “‘You Need to Do the Math and Then Explain the Math’: A Talk with ExxonMobil’s Darren Woods”,
McKinsey Quarterly, McKinsey & Company, September 12, 2023, https://www.mckinsey.com/industries/oil-and-gas/our-insights/you-
need-to-do-the-math-and-then-explain-the-math-a-talk-with-exxonmobils-darren-woods, accessed October 2023.
2 Ibid.
3 Ibid.
4 ExxonMobil, “Climate Policy Principles”, https://corporate.exxonmobil.com/climate-lobbying-report, accessed October 2023.
5 ExxonMobil, “Who We Are, Our History”, February 9, 2023, https://corporate.exxonmobil.com/who-we-are/our-global-
organization/our-history, accessed October 2023.
6 Ibid.
7 Christopher Helman, “The World’s Largest Energy Companies In 2023: The Rise Of Aramco, ExxonMobil And The Rest”, Forbes,
June 8, 2023, https://www.forbes.com//the-worlds-largest-energy-companies-in-2023-the-rise-of-aramco-exxonmobil-and-the-rest/,
accessed October 2023.
8 Ibid.
9 GreenPeace, “Exxon’s Climate Denial History: A Timeline”, https://www.greenpeace.org/usa/fighting-climate-chaos/exxon-and-the-
oil-industry-knew-about-climate-crisis/exxons-climate-denial-history-a-timeline/, accessed October 2023.
10 Ibid.
11 Justin Gillis and Clifford Krauss, “Exxon Mobil Investigated for Possible Climate Change Lies by New York Attorney General”,
The New York Times, November 5, 2015, https://www.nytimes.com/2015/11/06/science/exxon-mobil-under-investigation-in-new-york-
over-climate-statements.html, accessed October 2023.
12 GreenPeace, “Exxon’s Climate Denial History: A Timeline”, https://www.greenpeace.org/usa/fighting-climate-chaos/exxon-and-the-
oil-industry-knew-about-climate-crisis/exxons-climate-denial-history-a-timeline/, accessed October 2023.
13 Jennifer Hiller and Ross Kerber, “BlackRock’s Climate Views Put It Center Stage in Exxon Boardroom Fight”, Reuters, May20,
2021, https://www.reuters.com/business/sustainable-business/blackrocks-climate-views-put-it-center-stage-exxon-boardroom-fight-
2021-05-19/, accessed October 2023.
14 Jena McGregor, “The $185 Million Question about ExxonMobil CEO Tillerson Joining Trump’s Cabinet”, The Washington Post,
December 14, 2016, https://www.washingtonpost.com/news/on-leadership/wp/2016/12/14/the-188-million-question-about-exxon-ceo-
tillerson-joining-trumps-cabinet/, accessed October 2023.
15 Christopher Helman, “Exxon Exclusive: New CEO Opens Up On Russia, Climate Change, And The Permian Boom”, Forbes,
February 27, 2017, https://www.forbes.com/sites/christopherhelman/, accessed October 2023.
16 Ibid.
17 Ibid.
18 Marianne Lavelle, “Exxon Shareholders Approve Climate Resolution: 62% Vote for Disclosure”, Inside Climate News, May 31,
2017, https://insideclimatenews.org/news/31052017/exxon-shareholder-climate-change-disclosure-resolution-approved/, accessed
October 2023.
19 ExxonMobil, News Releases, “ExxonMobil Announces Ambition for Net Zero Greenhouse Gas Emissions by 2050”, January 18,
2022, https://corporate.exxonmobil.com/news/news-releases/2022/0118_exxonmobil-announces-ambition-for-Net Zero-greenhouse-gas-
emissions-by-2050, accessed October 2023.
20 Ibid.
21 Intergovernmental Panel on Climate Change, “Progress Report On Outreach”September 2008,
https://www.ipcc.ch/site/assets/uploads/2018/03/inf2-7.pdf, accessed October 2023.
22 Gabriella Borter, Katharine Houreld and Jake Spring, “Inspired by Greta Thunberg, Worldwide Protest Demands Climate Action”,
Reuters, September 21, 2019, https://www.reuters.com/article/us-climate-change-strike-idUSKBN1W507I, accessed October 2023.
23 Hiroko Mat Sumoto, “Global Exodus from Fossil Fuel Holdings Tops 1,500 Institutions”, Nikkei Asia, January 5, 2022,
https://asia.nikkei.com/Spotlight/Environment/Climate-Change/Global-exodus-from-fossil-fuel-holdings-tops-1-500-institutions,
accessed October 2023.
24 Net zero means cutting carbon emissions to a small amount of residual emissions that can be absorbed and durably stored by nature
and other carbon dioxide removal measures, leaving zero in the atmosphere. “For a Livable Climate: Net Zero Commitments Must be
Backed by Credible Action”, United Nations, Net Zero Coalition | United Nations, accessed October 2023.
25 ExxonMobil, “Climate Policy Principles, Climate Lobbying Report”, https://corporate.exxonmobil.com/climate-lobbying-report/,
accessed October 2023.
26 Ibid.
27 Ibid.
28
Scope 1 emissions are direct emissions from company-owned and controlled resources. Scope 2 emissions are indirect emissions
from the generation of purchased energy, from a utility provider. Scope 3 emissions are all indirect emissions — not included in Scope 2
— that occur in the value chain of the reporting company, including both upstream and downstream emissions. Tara Bernoville, “What
are Scopes 1, 2 and 3 of Carbon Emissions?, planA”, June 12, 2022, https://plana.earth/academy/what-are-scope-1-2-3-emissions,
accessed October 2023.
29 Ibid.
30 ExxonMobil, “ExxonMobil Announces Ambition for Net Zero Greenhouse Gas Emissions by 2050”, January 18, 2022,
https://corporate.exxonmobil.com/news/news-releases/2022/0118_exxonmobil-announces-ambition-for-Net Zero-greenhouse-gas-
emissions-by-2050, accessed October 2023.
31 Ibid.
32 Equinor, “Greenhouse Store Staying Sealed”, March 5, 2009, https://www.equinor.com/news/archive/2009/03/05/03MarSleipner,
accessed October 2023.
33 TotalEnergies SE is a French multinational integrated energy and Petroleum Company founded in 1924 and one of the seven
supermajor oil companies.
34
Capturing carbon refers to capturing CO2 from emitting sources.

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SMU-23-0035 ExxonMobil: Is Chasing Net Zero Futile?

35 Green Car Congress, “ExxonMobil Expands Carbon Capture Plant in Wyoming (Corrected)”, December 13, 2010,
https://www.greencarcongress.com/2010/12/cfz-20101210.html, accessed October 2023.
36 Carolyn Davis, “ExxonMobil Bidding to Advance CCS Expansion at Wyoming’s LaBarge Natural Gas Facility, Natural Gas
Intelligence”, October 22, 2021, https://www.naturalgasintel.com/exxonmobil-bidding-to-advance-ccs-expansion-at-wyomings-labarge-
natural-gas-facility/, accessed October 2023.
37 ExxonMobil, “ExxonMobil Low Carbon Solutions to Commercialize Emission-reduction Technology”, February 1, 2021,
https://corporate.exxonmobil.com/news/news-releases/2021/0201_exxonmobil-low-carbon-solutions-to-commercialize-emission-
reduction-technology, accessed October 2023.
38 Ibid.
39 ExxonMobil, “ExxonMobil Announces Full-year 2022 Results”, January 31, 2023, https://corporate.exxonmobil.com/exxonmobil-
announces-full-year-2022-results, accessed October 2023.
40 ExxonMobil, “Carbon Capture and Storage”, https://corporate.exxonmobil.com/what-we-do/delivering-industrial-solutions/carbon-
capture-and-storage#KeystoCCSpolicy, accessed October 2023.
41
FuelCell Energy, Inc. is a publicly traded fuel cell company, headquartered in Danbury, Connecticut.
42 Ibid.
43 Ibid.
44 ExxonMobil, “Climate Policy Principles, Climate Lobbying Report”, https://corporate.exxonmobil.com/climate-lobbying-report,
accessed October 2023.
45 Air Products, “Air Products to Supply Hydrogen to ExxonMobil in Rotterdam”, November 9, 2009,
https://investors.airproducts.com/news-releases/news-release-details/air-products-supply-hydrogen-exxonmobil-rotterdam, accessed
October 2023.
46 ExxonMobil, “ExxonMobil, Hydrogen and Lower-emissions Biofuels, Advancing Climate Solutions, Progress Report”, July 2022,
https://corporate.exxonmobil.com/-/media/global/files/advancing-climate-solutions-progress-report/2022-july-update/hydrogen-and-
lower-emission-biofuels.pdf, accessed October 2023.
47 Ibid.
48 ExxonMobil, “The Hydrogen Highway”, October 9, 2023, https://corporate.exxonmobil.com/what-we-do/delivering-industrial-
solutions/hydrogen/hydrogen-highway, accessed October 2023.
49
Ibid.
50 ExxonMobil, “Climate Policy Principles, Climate Lobbying Report”, https://corporate.exxonmobil.com/climate-lobbying-report,
accessed October 2023.
51
Ibid.
52 Ibid.
53 ExxonMobil, “Methane Emissions Reduction and Enabling Technologies”, https://corporate.exxonmobil.com/what-we-
do/delivering-industrial-solutions/methane, accessed October 2023.
54 Ibid.
55 ExxonMobil, “ExxonMobil Announces Full-year 2022 Results”, January 31, 2023, https://corporate.exxonmobil.com/news/news-
releases/2023/0131_exxonmobil-announces-full-year-2022-results#ProgressTowardNetZero, accessed October 2023.
56 Ibid.
57 Ibid.
58 IEA, “The Oil and Gas Industry in Energy Transitions, World Energy Outlook Special Report”, January 2020,
https://www.iea.org/reports/the-oil-and-gas-industry-in-energy-transitions, accessed October 2023.
59 Syed Shukur Ali, “ExxonMobil, Saudi Aramco, CNPC Believe Energy Demand Will Continue to Grow”, Bangladesh Sangbad
Sanstha, September 19, 2023, https://www.bssnews.net/news/top-news/148150, accessed October 2023.
60 Thomas Hundertmark, “‘You Need to do the Math and then Explain the Math’: A talk with ExxonMobil’s Darren Woods”,
McKinsey, McKinsey Quarterly, September 12, 2023, https://www.mckinsey.com/industries/oil-and-gas/our-insights/you-need-to-do-
the-math-and-then-explain-the-math-a-talk-with-exxonmobils-darren-woods, accessed October 2023.
61 BloombergNEF, “Carbon Capture Can’t Keep Oil Afloat in a Net Zero World”, August 26, 2021,
https://about.bnef.com/blog/carbon-capture-cant-keep-oil-afloat-in-a-Net Zero-world/, accessed October 2023.
62 IEA, “Hydrogen”, https://www.iea.org/energy-system/low-emission-fuels/hydrogen, accessed October 2023.
63 Global Data Energy, “Big Oil Companies Pursue Multiple Avenues for Energy Transition”, November 24, 2022,
https://www.offshore-technology.com/analyst-comment/big-oil-energy-transition/?cf-view, accessed October 2023.
64 IEA, “Emissions from Oil and Gas Operations in Net Zero Transitions”, World Energy Outlook, 2023,
https://www.iea.org/reports/emissions-from-oil-and-gas-operations-in-Net Zero-transitions, accessed October 2023.
65 SynEnergy Advisors, “The Key Role of Energy Storage in a Renewable Future”, October 11, 2023, https://www.synenergy-
advisors.com/en/news/the-key-role-of-energy-storage-in-a-renewable-future, accessed November 2023.

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