User:BetMaggs/ExxonMobil

Carbon Capture and Storage:

ExxonMobil has guaranteed a $15 billion toward advancing a "lower carbon future" and positions itself as a global leader in carbon capture and storage (CCS). The company has set a goal to achieve carbon neutral for its Scope 1 and Scope 2 emissions by 2050.

As part of its strategy, ExxonMobil acquired biofuel company BIOJET AS in 2022, while its Canadian subsidiary, Imperial Oil, is working on renewable diesel production. In 2023, the company expanded its low-carbon initiatives by acquiring Denbury Resources for $4.9 billion. More recently, in July 2024, ExxonMobil signed a CCS agreement with CF Industries, enabling the transportation and permanent storage of 500,000 tons of CO₂ per year beginning in 2028.

Energy Transfer

Energy transfer involves the conversion of energy from one form to another. ExxonMobil initiates this process by extracting crude oil and natural gas from deep below the Earth's surface. These resources hold stored chemical energy derived from ancient plants and animals. Once brought to the surface, the crude oil and gas are transported to refineries via pipelines, ships, and trucks. During transit, the energy within the oil and gas remains unchanged until it reaches the refinery. At the refinery, the crude oil is transformed into various usable forms, including gasoline, diesel, and jet fuel.

Refinement process involves 3 important steps including distillation, conversion, and treatment:

-Distillation: Crude oil is heated in a large tower called a fractionating column. Since crude oil has different boiling points, they separate into layers as they cool. The lightest substances such as gasoline rise to the top and the bottom layers like asphalt stay on the bottom.

-Conversion: Exxon Mobil uses chemical processes to convert heavier molecules into lighter, more valuable ones. This is done through methods like cracking, which breaks large molecules into smaller ones, and reforming, which rearranges molecules to improve fuel quality.

-Treatment and Blending: Before fuel can be sold, they must be treated to remove impurities. This helps the fuel become clean and get rid of pollution.

Bloomberg Information:

Exxon Mobil ESG scores from Bloomberg Terminals with current information and being ranked amongst the peers of their closest competitors. An ESG score stands for Environmental, Social, and Governance score. It is used to evaluate a company’s performance with sustainable and ethical issues.

Bloomberg’s combined ESG Score for Exxon Mobil is 5.32, which is slightly above peer median. Now divided up between the three sections. Environmental is a 4.71 which lies above the median, Social at 4.08 which is below the median, and finally Governance at 7.88 which is a Leading number or one of the best when put into comparison with Exxon's competitors.

The Environmental topic is about how the company impacts the planet. Going over things like carbon emissions, energy efficiency, waste management, water usage, and climate change policies. Some of the sectors that help build this environmental score are things like GHG Emissions Management, which has a weight of 11%, a score of 5.2, and a peer rank which lies above the median compared with Exxon’s Competitors. Another being Climate Exposure, with a weight of 11%, a score of 4.5, and a peer rank which lies above the median.

Now the Social topic covers how the company treats people. Covering things like employee working conditions, diversity and inclusion, human rights, community impact, and customer privacy and product safety. One of the factors gathered from Bloomberg. Occupational Health and Safety Management with weight 8% a score of 5.4 and a peer rank that’s above the median

Finally, the Governance topic covers how the company is run. Using topics like board diversity, executive pay, transparency, shareholder rights, ethical business practices. The factor gathered from Bloomberg is Board Composition with a weight of 10%, a score of 7.4 and a peer ranking that shows that this is a leader when compared to competitors. Executive Compensation with a weight of 7%, a score of 8.4 and a peer rank that is classified as Leading.

This company has taken some meaningful steps toward sustainability, including setting a Net Zero target and linking executive compensation to ESG performance—both strong indicators of long-term environmental and ethical commitment. It also shows progress on diversity, with over 30% of its board made up of women. Overall, while the foundation is promising, there’s room for growth in key impact areas.

Other Facts:

-         100% Revenue in high Nature Risk Sectors: Company likely under greater scrutiny for environmental performance.

-         2% Assets Identified are Located in Pristine Areas: Company could be exposed to controversies from poor management of sites in intact areas.

-         “High” Water Use, “Moderate” Water Stress: Company operations more likely to be disrupted by physical water availability.

References:

[1] "Bloomberg L.P.", Wikipedia, 2025-03-30, retrieved 2025-04-16

[2] "Environmental, social, and governance", Wikipedia, 2025-04-08, retrieved 2025-04-16

[3] "Greenhouse gas emissions", Wikipedia, 2025-04-04, retrieved 2025-04-16

[4] "Energy efficiency", Wikipedia, 2024-05-20, retrieved 2025-04-16

[5] "Diversity (business)", Wikipedia, 2025-04-03, retrieved 2025-04-16

[6] "Gender representation on corporate boards of directors", Wikipedia, 2024-12-17, retrieved 2025-04-16

[7] "ExxonMobil announces ambition for net zero greenhouse gas emissions by 2050". ExxonMobil. Retrieved 2025-04-16.