ExxonMobil pledges net zero carbon emissions by 2050

NEW YORK: ExxonMobil pledged to reach net zero greenhouse gas emissions by 2050, but stopped short of extending the promise to products it sells throughout the global economy.

The petroleum giant's promise covers Scope 1 and Scope 2 emissions, which account for carbon emissions from ExxonMobil operations, as well as emissions associated with the purchase of heating or cooling its facilities, according to a company press release.

The gas consumers buy and the US oil giant do not have to target Scope 3 emissions, which are products sold by the US oil giant. Some European companies such as Total have pledged to reduce emissions as well.

Environmental activists have argued that oil needs to be phased out if the world is to avoid catastrophic climate change, necessitating immediate plans to reduce Scope 3 emissions.

The announcement comes on the heels of ExxonMobil's earlier announcements to increase spending on less emission technologies, including through major projects on carbon capture and storage.

ExxonMobil cited programs to reduce routine flaring of gases and employ more renewable energy and lower emissions sources throughout company operations.

The ExxonMobil said in a press release that the company will release detailed roadmaps addressing 90 per cent of operations-related greenhouse gas emission by the end of 2022, with the rest in 2023.

Chief Executive Darren Woods cited the company's work in the Permian Basin, a major oil-producing region in the United States, as a spot where superior technology has allowed it to grow production while reducing the risk of climate change.

Woods told CNBC that if you look over the next several years, our production in the Permian is growing, and yet at the same time we're lowering emissions and we've made a commitment to have a Permian operations at net-zero carbon by 2030.

If you're thoughtful about how to achieve that, those two can go hand in hand.