Oil Giant ExxonMobil Reviews Achieving Carbon Neutrality by 2050

[Asia Economy Reporter Yujin Cho] ExxonMobil, a major U.S. oil company that had taken a negative stance on carbon neutrality, is now considering ways to achieve carbon neutrality by 2050.

On the 5th (local time), the Wall Street Journal (WSJ), citing sources, reported that ExxonMobil's management and board of directors are discussing concrete plans to realize carbon neutrality.

Until now, ExxonMobil had shown a lukewarm attitude toward carbon neutrality, emphasizing a positive outlook on the oil industry. As recently as March last year, Darren Woods, CEO of ExxonMobil, dismissed the carbon neutrality goals announced by European competitors as a "superficial competition" lacking substantive plans.

However, the perspective on carbon neutrality has shifted after the hedge fund "Engine No. 1," which has voiced concerns about U.S. companies accelerating decarbonization, secured three seats on the board.

In particular, Alexandre Kasser, a director from Alphabet's innovation lab (Google's parent company) appointed by Engine No. 1, has been leading pressure on ExxonMobil's management to revise strategies related to climate change issues.

Additionally, following the first annual loss in 40 years due to a sharp drop in demand caused by the COVID-19 pandemic last year, investors have strongly demanded changes aligned with shifting trends for the company's survival.

WSJ reported that investors' increasing demands for the company to take bolder steps to reduce carbon emissions have been pressuring CEO Woods.

Currently, ExxonMobil has not made a final decision regarding carbon neutrality and plans to announce strategic revisions related to environmental and other issues within the year.

Casey Norton, Exxon spokesperson, stated, "We are working toward decarbonization and support regulations that promote it," adding, "We will disclose our strategy on environmental issues to shareholders and the public as soon as it is decided."

This content was produced with the assistance of AI translation services.