Exxon Mobil (NYSE:XOM) on Tuesday pledged to cut to zero its net carbon emissions from its global operations by 2050, catching up with rivals who are minimizing their carbon footprints.
Exxon’s 2050 plan, first mulled last year by the oil behemoth, covers emissions from its oil, gas, and chemical production and from the power those operations consume, so-called scope 1 and 2 targets. It made no commitment for emissions from consumers using those products.
“We are developing comprehensive roadmaps to reduce greenhouse gas emissions from our operated assets around the world,” said Exxon Chief Executive Officer Darren Woods.
The company is “working with our partners to achieve similar emission-reduction results” in properties where Exxon is not in charge of operations, he said.
The oil major’s shareholders last year tossed out three Exxon directors and replaced them with candidates proposed by a hedge fund pressing the company to boost returns and better prepare itself for a low-carbon world.
U.S. oil producers have lagged many European rivals in embracing Paris climate agreement goals of reducing the emissions that contribute to global warming. BP (NYSE:BP) and Royal Dutch Shell (NYSE:RDS.A) have also pledged to cut emissions from fuels and products sold to consumers, so-called scope 3 targets.
Exxon’s new pledge puts it a step ahead of U.S. rival Chevron (NYSE:CVX), which last October pledged to bring emissions from its upstream operations to zero by 2050 and lower the intensity of emissions elsewhere.
XOM shares rose $1.46, or 2%, to $73.33.