Exxon Mobil Corporation XOM announced its pledge to achieve net-zero emissions from its operations by 2050.

Energy companies have been under immense pressure due to the growing urgency from investors and environmentalists to curb climate change. ExxonMobil has set detailed targets for reducing emissions from major facilities and assets. Hence, the oil giant can effectively drive the transition to clean energy.

ExxonMobil's net-zero plan involves emissions associated with its oil, gas and chemical production. XOM also commits to carbon neutrality for its Scope 1 and Scope 2 greenhouse gas emissions by 2050. However, the plan doesn’t cover emissions from the use of its products, including gasoline and other fuels, which constitute the majority of XOM’s emissions. It also doesn’t involve oilfields and other non-operating assets.

In 2020, ExxonMobil released the equivalent of 111 million tons of carbon dioxide from its facilities, suggesting a 6% decline from the previous year. XOM is taking a systematic approach to support the transition to a low-carbon, more resilient future. The company identified more than 150 feasible measures and modifications, which can be applied to assets in its upstream, downstream and chemical operations.

In December 2021, ExxonMobil pledged to achieve net-zero emissions from operated assets in the Permian Basin by 2030. The move was part of a company-wide effort to reduce upstream greenhouse gas emission intensity by 40-50% by 2030 from the 2016 levels.

ExxonMobil’s plan is well-aligned with the Oil and Gas Climate Initiative, aiming to boost the industry's response to climate change. XOM aims to reduce carbon emissions by checking methane leaks, updating equipment and electrifying production operations.

ExxonMobil intends to spend $15 billion on low-carbon projects through 2027. This comprises technological developments that are currently non-commercial such as carbon capture and storage, hydrogen power, and biofuel from algae.

Company Profile & Price Performance

Headquartered in Irving, TX, ExxonMobil is one of the leading integrated energy companies in the world.

Shares of ExxonMobil have outperformed the industry in the past three months. The XOM stock has gained 18.2% compared with the industry's 9.4% growth.

Image Source: Zacks Investment Research

Zacks Rank & Other Stocks to Consider

ExxonMobil currently flaunts a Zack Rank #1 (Strong Buy).

Investors interested in the energy sector might look at the following companies that presently sport a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here.