Exxon Mobil presentation handout

How are businesses (TNCs) responding to climate change?

Climate Policy

 Specifically targeting CO2 emissions

 Use of a simple cost of carbon pricing, implied cost of $80 per metric tonne of CO2 in 2040.

 Policy to lower GHG emissions by increasing energy efficiency and managing flaring and venting in their operations in the short term

 Implementing proven reduction technologies in the medium term

 Developing breakthrough technologies in the long term.

 One of the most effective ways for society to lower GHG emissions is through the use of natural gas in electric power generation. Improving Energy Efficiency

 In 2012, energy used in our operations totalled 1.5 billion gigajoules, which remains unchanged relative to our 2011 energy usage.

 Since 2000, Exxon used Global Energy Management System (GEMS) in the Downstream and Chemical business lines.

 From 2002 to 2012, Exxon improved energy efficiency by approximately 10% in refining and 12% in chemical manufacturing.

 System improvements reduced steam consumption by 90 tons per month, a 20% reduction.

 At many of our sites, recovering waste heat to generate needed steam provides heat to processes of additional fuel.

 Working with Imperial Oil campus to incorporate sustainable design practices into the construction process. 26th November 2014 Gareth James and Harry Bridges Managing Climate Change Risks

 ExxonMobil are working to stabilize CO2 emissions at 450ppm, without intervention this could raise past 550ppm and put the environment past the ‘tipping point’

 There are large costs involved in reducing CO2 emissions – probably be passed onto the consumer, maintaining profits. E.g. $100 cost per metric tonne of CO2 would add $40 to the cost of a barrel of oil.

 There are certain risks and limitations, like an inability to work in a certain country, or forecasting the demand and supply of oil or gas.

 Agovernmentmayonlyfocusonalternativeenergysources-theseallraisecosts and mean that CO2 reducing methods will not be used in those countries.

To reduce the world’s global CO2 emissions by 2050 would need $40 trillion dollars of investment, coupled with complete international cooperation- this shows the huge problems that ExxonMobil faces 26th November 2014 Gareth James and Harry Bridges