Exxon says fossil fuels are here to stay (2023)
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Two years ago, Engine No. 1, a sustainability-aligned hedge fund, shook up the shareholder world by challenging four incumbents on the Exxon Mobil board of directors, offering whom they consider to be more environmentally friendly candidates in their places. With the help of California pension funds CalPERS and CalSTRS and the Big Three asset managers (BlackRock, Vanguard, and State Street), Engine No. 1 won three of those four seats and promised to change Exxon’s approach to sustainability. But Exxon Mobil last week said those who support a carbon-free future will likely face disappointment:
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Energy use and economic development are inseparable. Where there is energy poverty, there is poverty. And where energy availability rises, living standards rise as well. … Between now and 2050, developing countries will see GDP per capita more than double, driving higher demand for energy. Meeting that demand with lower-emission energy options is vital to making progress toward society’s environmental goals. At the same time, failing to meet demand would prevent developing nations from achieving their economic goals and their citizens from living longer, more fulfilling lives. The critical question is how that growing energy demand will be met. Renewable energy continues to hold great promise, and we see wind and solar providing 11% of the world’s energy supply in 2050, five times today’s contribution. Other loweremission options, such as biofuels, carbon capture and storage, hydrogen, and nuclear, will also play important roles. And even with this unprecedented rise in lower-emission options, oil and natural gas are still projected to meet more than half (54%) of the world’s energy needs in 2050. … The Global Outlook projects that the biggest change in the world’s energy mix between now and 2050 will be a significant increase in solar and wind, along with a significant reduction in coal. Energy from solar and wind is projected to more than quintuple, from 2% of the world’s supply to 11%. Coal will increasingly be displaced by lower-emission sources of electricity production – not just renewables but also natural gas, which has about half the carbon intensity of coal. Overall, electricity use grows 80% by 2050. Oil and natural gas are projected to still make up more than half of the world’s energy supply. The utility of oil and natural gas in meeting the world’s needs remains unmatched. They are energy dense, portable, available, and affordable — and serve as essential raw materials for many products we use today.[1] |
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See also
- Environmental, social, and corporate governance (ESG)
- Economy and Society: Ballotpedia's ESG newsletter
External links
Footnotes
- ↑ Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
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