ExxonMobil : A Tale of Two Stories

This illustration above may look confusing and challenging to understand at a glance, but it speaks volumes about what many corporations are doing to paint a picture of sustainability and environmental justice. In this picture, you can see three green boxes, each supposed to represent an ecological initiative of the company, but clearly, these boxes aren’t telling the entire story. The first box on the right is labeled “eco fund,” representing the company’s “green initiative,” but it’s leaking greenhouse gases, which isn't very eco-friendly. What’s also noticeable is that someone is trying to cover up the gases, which would logically represent the corporation. This can also be seen with the other boxes.

Source: Impakter

Have you recently seen an Exxon Mobil ad? If so, it was most likely about how the company is investing in an algae-based biofuel that would decrease emissions drastically. Although they’ve touted how they would have the “capability to produce 10,000 barrels a day in 2025”, simultaneously, Exxon invested heavily into shale gas, containing the potent greenhouse gas methane. Exxon Mobil is a tale of two stories, one that is very loud, promoting their transition to a sustainable future, and one that is quieter and represents their inaction.

Exxon’s departure from the American Legislative Exchange Council (ALEC) is part of the first story. This conservative nonprofit organization has had a history of being opposed to climate action and undermining climate science education in schools.

On the other hand, unlike other oil companies, Exxon ranks at the bottom in low-carbon investments, with only 0.16% of capital expenditures going towards their algae biofuel research and other investments. This percentage is shockingly low when compared to foreign oil companies such as BP, with 16% - 20%, and Shell, allocating 9% - 10%. The strategies of BP and Shell are also different; unlike Exxon, they are acquiring renewable energy companies and using their knowledge base in supply change and other areas to expand them.

So what’s next for Exxon? Will they continue their insignificant investment in fundamental research for a new biofuel, or will they move in a new direction thanks to shareholder activism?