ExxonMobil promises emissions cuts after investor pressure

ExxonMobil promises emissions cuts after investor pressure

US oil major aims to reduce per barrel emissions by up to a fifth in next five years

ExxonMobil has promised to cut emissions for every barrel of oil it produces by up to a fifth over the next five years, after investor pressure for action on climate change.

The company said on Monday it would aim for a cut of 15-20 per cent per barrel by 2025, compared with 2016 levels. 

The announcement comes as Exxon faces a vocal shareholder campaign to do more to reduce its environmental impact.

A number of US oil producers have promised to cut emissions in the face of investor worries about climate change, and ahead of the inauguration of the new US president Joe Biden, who has said he would “transition away from the oil industry”.

Exxon, which was once the world’s largest company by market capitalisation, is a symbol of big oil in the US. It has stuck to a strategy of expanding crude output despite a shift by rivals towards greener forms of energy production and some forecasts pointing to a peak of global crude consumption this decade.