ExxonMobil’s key sustainability issues and challenges Our stakeholders are increasingly interested in how we are incorporating sustainability and addressing challenges in our everyday operations. Suzanne McCarron, ExxonMobil vice president of public and government affairs, answers some of these questions from stakeholders in the discussion below. With low oil prices and concerns about stranded assets, does ExxonMobil have any plans to diversify its energy mix? We believe prices over the long term will continue to be driven by market supply and demand, with the demand side largely being a function of global economic growth. On the supply side, prices may be significantly impacted by political events, the actions of OPEC and other large government resource owners, and other factors. To manage the risks associated with price, ExxonMobil evaluates annual plans and all investments across a wide range of price scenarios. Our assessment is that operations will exhibit strong performance over the long term. This is the outcome of disciplined investment, cost management, asset enhancement programs and application of advanced technologies. Our analysis confirms our long-standing view that all energy sources are necessary to meet rising global energy demand and to support improving living standards worldwide. All of ExxonMobil’s current hydrocarbon reserves will be needed, along with substantial future industry investments, to address global energy needs. ExxonMobil’s Outlook for Energy and all credible forecasts, including that of the International Energy Agency, predict that carbon-based fuels will continue to meet about three-quarters of global energy needs through 2040. We also have a team within the company — the ExxonMobil Emerging Technologies team — that studies every aspect of the energy business, from oil and natural gas to alternatives. It looks into areas outside our company’s current business focus. If a technology could have a material effect on the future of energy, the Emerging Technologies team works to understand and evaluate it. We work hard to keep our research aperture wide.
At the same time, we urge them to recognize important shared humanitarian needs, including providing reliable and affordable energy to improve living standards. As a global issue, climate change requires global solutions. Both developed and developing countries must now work together in crafting policies aimed at mitigating greenhouse gas emissions, while recognizing differing national priorities.
What is ExxonMobil doing to address the risks of climate change?
We believe the risks of climate change are real and warrant thoughtful action. Climate change is a global issue that requires the collaboration of governments, companies, consumers and other stakeholders to create global solutions. ExxonMobil continues to support and contribute to efforts to reduce greenhouse gas emissions. For more than three decades, we have continuously funded and participated in research to improve understanding of climate science, often in conjunction with government bodies and leading research universities. This has resulted in hundreds of publicly available documents on climate-related topics, including more than 50 peer-reviewed publications. We promote discussion on issues of direct relevance to the company and contribute to a wide range of academic and policy organizations that research and promote dialogue on significant domestic and foreign policy issues. We value scientists and research, and we collaborate with the world’s smartest minds in partnership with more than 80 universities around the world. With more than 2,200 Ph.D. scientists and engineers and more than 5,000 employees at our research and technology divisions around the world, we work day in and day out to explore the new energy solutions of the future. We spend about $1 billion annually on energy research, a total that includes commitments to biofuels, carbon capture and sequestration, bio-products, non-hydrocarbon energy supply, power generation, transportation, energy efficiency and climate science.
Suzanne McCarron has worldwide responsibility for the company’s public policy, government relations, communications, media relations and corporate citizenship activities. Suzanne authors our Perspectives blog, laying out some of the energy challenges we face and encouraging active discourse about their solutions.
What are ExxonMobil’s views of the climate agreement reached at the COP 21 climate conference in Paris? The recently concluded talks reflected the complexities of enacting thoughtful policies that address climate risks in a meaningful way while also ensuring accessible and affordable energy supplies for societies throughout the world. As policymakers develop mechanisms to meet the goals set in Paris, ExxonMobil encourages them to focus on reducing the greatest amount of emissions at the lowest cost to society.
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ExxonMobil’s key sustainability issues and challenges
exxonmobil.com/citizenship
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