{"id":62361,"date":"2024-03-04T13:00:44","date_gmt":"2024-03-04T21:00:44","guid":{"rendered":"https:\/\/energi.media\/?p=62361"},"modified":"2024-03-04T13:00:44","modified_gmt":"2024-03-04T21:00:44","slug":"theres-a-reason-exxons-ceo-says-its-emissions-are-your-fault","status":"publish","type":"post","link":"https:\/\/energi.media\/news\/theres-a-reason-exxons-ceo-says-its-emissions-are-your-fault\/","title":{"rendered":"There\u2019s a reason Exxon\u2019s CEO says its emissions are your fault"},"content":{"rendered":"<p><em>This article was published by <a href=\"https:\/\/grist.org\/accountability\/reason-exxon-ceo-emissions-woods-investors\/\" target=\"_blank\" rel=\"noopener\">Grist<\/a> on March 4, 2024.<\/em><\/p>\n<p><em><strong>By <a class=\"byline-link\" href=\"https:\/\/grist.org\/author\/kate-yoder\/\">Kate Yoder<\/a><\/strong><\/em><\/p>\n<p class=\"has-default-font-family\">When you fill up your tank and drive away from a gas station, is the resulting carbon pollution your fault? Or the fault of the oil giant that supplied the fuel?<\/p>\n<p class=\"has-default-font-family\">Darren Woods, the CEO of Exxon Mobil, the largest publicly traded oil company in the world, has a clear answer. In\u00a0<a href=\"https:\/\/podcasts.apple.com\/us\/podcast\/leadership-next\/id1501891506\" target=\"_blank\" rel=\"noopener noreferrer\">a rare interview<\/a>\u00a0with the media last week, Woods explained that the \u201cdirty secret\u201d behind why the world wasn\u2019t on track to zero out carbon emissions was that it was simply too expensive. In doing so, he subtly pinned the blame for the emissions created by burning oil and gas on his company\u2019s customers.<\/p>\n<p class=\"has-default-font-family hang-punc-medium\">\u201cThe people who are generating the emissions need to be aware of and pay the price for generating those emissions,\u201d he told Fortune\u2019s Leadership Next podcast. \u201cThat\u2019s ultimately how you solve the problem.\u201d<\/p>\n<p class=\"has-default-font-family\">The emissions in question, created when oil and gas are actually burned, represent\u00a0<a href=\"https:\/\/www.woodmac.com\/press-releases\/few-oil-and-gas-companies-commit-to-scope-3-net-zero-emissions-as-significant-challenges-remain\/\" target=\"_blank\" rel=\"noopener noreferrer\">80 to 95 per cent<\/a>\u00a0of the worldwide emissions associated with oil companies. In energy wonk-land, these emissions are known as \u201cScope 3.\u201d Three years ago, under pressure from activist investor groups, Exxon reluctantly revealed the vast scale of its own \u201cScope 3\u201d emissions for the first time. The company estimated that the products it sold in 2019 resulted in\u00a0<a href=\"https:\/\/www.reuters.com\/business\/sustainable-business\/exxon-under-investor-pressure-discloses-emissions-burning-its-fuels-2021-01-06\/\" target=\"_blank\" rel=\"noopener noreferrer\">730 million metric tons<\/a> of carbon dioxide. For reference, that\u2019s 11 per ent of what the\u00a0<a href=\"https:\/\/www.epa.gov\/sites\/default\/files\/2021-04\/documents\/us-ghg-inventory-1990-2019-data-highlights.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">entire United States<\/a>\u00a0emitted that year.<\/p>\n<p class=\"has-default-font-family\">Big emissions have big consequences. Research from the Union of Concerned Scientists has traced the direct and indirect emissions from fossil fuel producers to\u00a0<a href=\"https:\/\/iopscience.iop.org\/article\/10.1088\/1748-9326\/ab5abc\" target=\"_blank\" rel=\"noopener noreferrer\">ocean acidification<\/a>,<a href=\"https:\/\/link.springer.com\/article\/10.1007\/s10584-017-1978-0\" target=\"_blank\" rel=\"noopener noreferrer\">\u00a0the rise in global temperatures<\/a>, and\u00a0<a href=\"https:\/\/grist.org\/accountability\/study-a-third-of-the-wests-burned-forests-can-be-traced-to-fossil-fuel-companies\/\">wildfires in the Western United States<\/a>.<\/p>\n<p class=\"has-default-font-family\">Activist investor groups have been calling on oil companies to reduce Scope 3 emissions, but Exxon would rather focus on the direct emissions that come from oil rigs and power plants (Scope 1) and the fuel or electricity purchased for things like operating machinery or powering its offices (Scope 2). Exxon\u00a0<a href=\"https:\/\/www.npr.org\/2024\/02\/29\/1234358133\/exxon-climate-change-oil-fossil-fuels-shareholders-investors-lawsuit\" target=\"_blank\" rel=\"noopener noreferrer\">sued two of those investor groups<\/a>\u00a0in January over the resolutions they\u2019ve submitted demanding faster emissions cuts, arguing that the repeated submissions amount to\u00a0<a href=\"https:\/\/corporate.exxonmobil.com\/news\/corporate-news\/shareholder-proposal\" target=\"_blank\" rel=\"noopener noreferrer\">abuse of the shareholder proposal system<\/a>. It\u2019s an aggressive move that some experts see as a sign that Exxon is committed to shutting down conversations about responsibility for the full scope of its emissions.<\/p>\n<p class=\"has-default-font-family\">This issue is a hot topic in oil company boardrooms, according to Laura Peterson, a corporate analyst at the Union of Concerned Scientists. \u201cIt\u2019s clear that they find it a threat,\u201d Peterson said. \u201cI think that they know, because their emissions are very high, that they\u2019re not going to be able to just evade them through carbon capture as their climate transition plans claim, and that it\u2019s going to open them up to litigation. And so they are just trying to squelch it.\u201d<\/p>\n<p class=\"has-default-font-family\">Oil companies have been trying to shunt responsibility for carbon emissions for a long time. A study in 2021 scrutinizing Exxon\u2019s memos, studies, and advertisements over the past half-century found that the oil giant used rhetoric to\u00a0<a href=\"https:\/\/grist.org\/language\/exxonmobil-climate-change-harvard-study\/\">shift the blame for climate change onto average people, their customers<\/a>. In public communications, the company focused on \u201cconsumers\u201d and \u201cdemand,\u201d implicitly pointing the finger elsewhere. BP employed a similar strategy,\u00a0<a href=\"https:\/\/grist.org\/energy\/footprint-fantasy\/\">popularizing the idea of calculating your personal \u201ccarbon footprint\u201d<\/a>\u00a0in marketing campaigns in the early 2000s.<\/p>\n<p class=\"has-default-font-family\">Exxon is\u00a0<a href=\"https:\/\/www.reuters.com\/business\/sustainable-business\/big-oils-climate-targets-2023-03-21\/\" target=\"_blank\" rel=\"noopener noreferrer\">one of the few major oil companies<\/a>\u00a0that has so far\u00a0<a href=\"https:\/\/corporate.exxonmobil.com\/sustainability-and-reports\/advancing-climate-solutions#Aboutthereport\" target=\"_blank\" rel=\"noopener noreferrer\">neglected to set any targets<\/a>\u00a0for cutting its Scope 3 emissions. The company\u2019s board\u00a0<a href=\"https:\/\/www.sec.gov\/ixviewer\/ix.html?doc=\/Archives\/edgar\/data\/34088\/000119312523100079\/d429320ddef14a.htm#toc429320_17\" target=\"_blank\" rel=\"noopener noreferrer\">has argued<\/a>\u00a0that applying these targets to companies would cause \u201csignificant, unintended consequences for society.\u201d Woods\u00a0<a href=\"https:\/\/corporate.exxonmobil.com\/-\/media\/global\/files\/advancing-climate-solutions\/acs-and-sr-chairmans-letter_121522.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">has written<\/a>\u00a0that the current way Scope 3 emissions are calculated would encourage bad behavior from companies and force consumers to turn to dirty energy sources like coal. \u201cThat\u2019s like saying that requiring calorie information on restaurant menus would force people to binge on junk food,\u201d Peterson quipped in\u00a0<a href=\"https:\/\/blog.ucsusa.org\/laura-peterson\/investors-need-to-know-the-full-scope-of-corporate-carbon-emissions\/\" target=\"_blank\" rel=\"noopener noreferrer\">a blog post<\/a>.<\/p>\n<p class=\"has-default-font-family\">As countries move to regulate Scope 3 emissions, companies are lobbying to stop them. In late February, Reuters reported that the U.S. Securities and Exchange Commission was planning to\u00a0<a href=\"https:\/\/www.reuters.com\/sustainability\/us-regulator-drops-some-emissions-disclosure-requirements-draft-climate-rules-2024-02-22\/\" target=\"_blank\" rel=\"noopener noreferrer\">drop a requirement forcing companies to disclose these emissions<\/a>\u00a0from its proposed climate risk rules for corporations. That would place the responsibility for those emissions on customers. But California is heading in a different direction, adopting a law last year that will eventually require large companies that do business in the state to disclose their Scope 3 emissions \u2014 including\u00a0<a href=\"https:\/\/theconversation.com\/exxon-apple-and-other-corporate-giants-will-have-to-disclose-all-their-emissions-under-californias-new-climate-laws-that-will-have-a-global-impact-214630\" target=\"_blank\" rel=\"noopener noreferrer\">corporate giants like Exxon<\/a>.<\/p>\n<p class=\"has-default-font-family\">Of course, it\u2019s hard to untangle\u00a0<a href=\"https:\/\/www.oxfamamerica.org\/explore\/stories\/who-is-responsible-for-climate-change\/\" target=\"_blank\" rel=\"noopener noreferrer\">exactly who bears how much of the blame<\/a>\u00a0for the emissions that led to the climate crisis: Big Oil? Governments? Rich countries? Billionaires? Normal people? It\u2019s some combination of all of the above. Oil companies make the case that it\u2019s a \u201cdemand\u201d problem \u2014 as long as people are driving cars, and thus demanding fossil fuels, then they have to keep producing the gas.<\/p>\n<p class=\"has-default-font-family\">A 2022 report by the Intergovernmental Panel on Climate Change, however, concluded that people\u00a0<a href=\"https:\/\/drilled.media\/news\/ipcc-01\" target=\"_blank\" rel=\"noopener noreferrer\">demand \u201cservices,\u201d not fossil fuels<\/a> specifically. In fact, the panel found that people could live comfortably with a lot less fossil fuels. \u201cDemand-side\u201d solutions, including shifts in how buildings are constructed, how people get around, and what they eat, have the potential to reduce emissions 40 to 70 per cent across all sectors by 2050.<\/p>\n<p class=\"has-default-font-family\">Climate advocates argue that oil companies, with their history of spreading climate disinformation and trying to block policies to move away from fossil fuels, bear a large portion of the blame for climate change. Across the country, around 30 lawsuits filed by cities, states, and Indigenous tribes\u00a0<a href=\"https:\/\/grist.org\/accountability\/supreme-court-unleashed-climate-lawsuits-against-big-oil\/\">seek to hold Exxon and other fossil fuel companies accountable<\/a>\u00a0for deceiving the public about the harms of using their products.<\/p>\n<p class=\"has-default-font-family hang-punc-medium\">\u201cThey\u2019re responsible for a lot of climate damage, and they\u2019re responsible for misleading the public in the past, which led to more damage,\u201d Peterson said. \u201cAnd now they\u2019re basically saying that they should not be responsible for disclosing these emissions, because they\u2019re just not relevant to their business.\u201d<\/p>\n<p class=\"has-default-font-family\">Unsurprisingly, Exxon\u2019s CEO wants to move past the whole history aspect. \u201cThat was 30 years ago,\u201d Woods told Fortune last week. \u201cI mean, today, the world has moved on. The understanding of this challenge has moved on. I think where we are today is, how can we contribute to a solution set, not debate the past?\u201d<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<div class=\"mh-excerpt\"><p>This article was published by Grist on March 4, 2024. By Kate Yoder When you fill up your tank and drive away from a gas station, is the resulting carbon pollution your fault? Or the <a class=\"mh-excerpt-more\" href=\"https:\/\/energi.media\/news\/theres-a-reason-exxons-ceo-says-its-emissions-are-your-fault\/\" title=\"There\u2019s a reason Exxon\u2019s CEO says its emissions are your fault\">[Read more]<\/a><\/p>\n<\/div>","protected":false},"author":6,"featured_media":62363,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"give_campaign_id":0,"footnotes":""},"categories":[1],"tags":[322,548,80,14,16],"class_list":{"0":"post-62361","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-news","8":"tag-business","9":"tag-emissions","10":"tag-environment","11":"tag-featured","12":"tag-oil-and-gas"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Exxon - Thoughtful Journalism About Energy&#039;s Future<\/title>\n<meta name=\"description\" content=\"Darren Woods, the CEO of Exxon Mobil, said the world wasn\u2019t on track to zero out carbon emissions was that it was simply too expensive.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/energi.media\/news\/theres-a-reason-exxons-ceo-says-its-emissions-are-your-fault\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Exxon - 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