Connect with us

Published

on

In an impressive second quarter, ExxonMobil has revealed record profits while cutting emissions. The company’s strong financial results and reduced environmental impact highlight its success in balancing profitability with sustainability.

Exxon Excels in Q2 Profits

ExxonMobil reported its second-quarter 2024 earnings on August 2, revealing a strong financial performance. The company earned $9.2 billion, or an adjusted $2.14 per share. This indicated a 17% jump from the previous year’s profits of $7.9 billion. The acquisition of Pioneer Natural, finalized in May, boosted Exxon’s earnings by $500 million.

Furthermore, excluding working capital movements, cash flow from operations reached $15.2 billion. Exxon Mobil also distributed $9.5 billion to shareholders, including $4.3 billion in dividends and $5.2 billion in share repurchases. These results are consistent with the company’s announced plans.

Darren Woods, Exxon’s chairman and CEO remarked,

“We delivered our second-highest 2Q earnings of the past decade as we continue to improve the fundamental earnings power of the company.”

The company achieved the highest production levels in Guyana and the Permian Basin. As per their press release, total net production in Upstream rose by 15%, adding 574,000 oil-equivalent barrels per day from the first quarter.

Exxon also added new businesses. For example, they advanced their carbon capture and storage (CCS) efforts with a new deal that boosted the total contracted CO2 offtake with industrial customers to 5.5 million metric tons annually. This amount is the biggest ever announced by any company.

ExxonMobil: Cutting Emissions for Cleaner Air

The company has reduced its emissions of nitrogen oxides, sulfur oxides, and volatile organic compounds from 2016 to 2022 by about 23%. Key steps highlighted in their sustainability report are:

  • Understanding the composition and extent of emissions
  • Meeting or exceeding environmental regulations
  • Reducing air emissions to minimize local impacts
  • Monitoring air quality science and health standards

For new projects, Exxon follows strict environmental policies and standards. They guide facility designs and operations and practice specific procedures at each site to control air emissions effectively.

In 2023, ExxonMobil’s equity-based GHG emissions were 111MMTCO2e.

This was a reduction of 2mmt compared to the previous year. Additionally, their 2030 plans to reduce GHG emissions are intensity-based. They focus on reducing Scope 1 and 2 emissions from their operations, compared to 2016 levels.

Check out the emission data below ranging from 2016-2023.

ExxonMobilsource: ExxonMobil

These actions are also expected to achieve a 20% absolute reduction in corporate-wide GHG emissions with the 2016 baseline. Notably, Exxon’s 2030 emission reduction plans align with the Paris Agreement.

Statista reported that in 1965, the oil giant released more than 40 billion metric tons of carbon dioxide equivalent, making it one of the biggest contributors to global greenhouse gas emissions in the world.

Woods further said,

“The focused actions we have taken have enabled us to accelerate greenhouse gas reductions, particularly in the areas of methane and flaring. We anticipate meeting our 2025 greenhouse gas emission-reduction plans ahead of schedule, which gives us the confidence to set more aggressive medium-term goals across all of our businesses.”

Net-Zero Path: Pioneering in Low Carbon Solution Business

As the world moves toward net zero, emission-reduction markets are set to grow. Exxon wants to create opportunities for its Low Carbon Solutions business which is significant for their expansion. Apart from mitigating emissions, they focus on strong returns and value during the energy transition.

“Our company manages molecules”- Exxon

For decades, Exxon has focused on capturing, transporting, and storing molecules, producing hydrogen, and sourcing lower-carbon-intensity molecules. It is rapidly expanding its business in these areas with a potential market value of over $6 trillion by 2050.

Carbon Capture and Storage

Exxon’s acquisition of Denbury Inc. is poised to give a major boost to projects and open new opportunities along the U.S. Gulf Coast and beyond. Denbury’s 1,300 miles of CO2 pipelines, primarily in Gulf Coast states, and its strategically located assets are ideal for combating emissions.

Overall, this acquisition supports efficient carbon capture and storage and benefits multiple low-carbon businesses. The goal is to reduce emissions by over 100 MMT annually faster and cost-effectively.

Exxon’s CCS portfolio also includes partnerships with the companies mentioned in the image:

ExxonMobil CCUsource: ExxonMobil

Hydrogen

ExxonMobil uses hydrogen extensively in its refining and chemical plants and plans to expand this use. In Baytown, Texas, the company is building the world’s largest low-carbon hydrogen production facility. This plant will produce 1 billion cubic feet of hydrogen daily, enough to power 1.5 million homes.

The facility will capture over 98% of CO2, about 7 MMTs annually, and provide clean hydrogen to Gulf Coast industrial customers and Baytown facilities. The project, using certified lower-emission natural gas from the Permian Basin, is expected to start in 2028.

Looking ahead, ExxonMobil is exploring technology advancements and transport solutions. It participates in initiatives to advance low-carbon hydrogen and address blending hydrogen into natural gas pipelines. The company is also collaborating with the MIT Energy Initiative to develop a carbon life-cycle tool that will help policymakers design effective emission-reducing technologies.

Lithium

In a new development last November, Exxon announced plans to produce lithium carbonate for EV batteries using direct lithium extraction (DLE) technology in southern Arkansas. The first production is set to begin in 2027, and the product will be branded as Mobil™ Lithium. This significant achievement in energy transition will also advance U.S. climate policy while minimizing environmental impacts.

Lower-Emissions Fuels

Lower-emission fuels, including biofuels from plants and synthetics made from hydrogen and CO2, produce fewer emissions than traditional fuels. They offer high energy density for heavy trucks, with renewable diesel reducing carbon emissions by up to 70%. Demand is expected to grow significantly, especially in aviation, marine, and heavy-duty trucking, with projections reaching nearly 9 million oil-equivalent barrels per day by 2050.

The company is using the latest technology to expand lower-emission fuels and innovating next-generation options through its Low Carbon Solutions business. Some remarkable efforts include integrating biomass-based fuel production with carbon capture and exploring natural gas conversion into methanol-based fuels.

Current initiatives feature expanding renewable fuel production at the Strathcona, Canada refinery, and delivering certified sustainable aviation fuel (SAF) to Changi Airport in Singapore as part of a pilot project.

From the report, it’s clear that ExxonMobil maintains a leading position in profits and production. At the same time, the company demonstrates a strong commitment to environmental solutions and efforts to combat emissions.

The post ExxonMobil Q2 Highlights Stellar Profits and Reduced Emissions appeared first on Carbon Credits.

Continue Reading

Carbon Footprint

The Strategic Case for Nature-Based Carbon Investments

Published

on

Nature-based carbon investments deserve consideration when they address a specific business dependency and produce outcomes you can measure. Imagine Moonbucks, a global coffee roaster planning next season’s espresso blend. It is considering natural Grade 4 coffee from Jimma, in southwestern Oromia, Ethiopia. Its sourcing decisions affect the roasting schedule and the cash tied up in coffee purchases. Moonbucks needs to understand which measures could protect that supply, what they would cost and how it would judge the results.

1. Define the sourcing problem before choosing a project

Moonbucks needs a dependable component for its espresso blend. Its procurement team wants continuity of volume and an agreed cup profile. Replacing a shipment at short notice could require new sample approval and changes to the blend, and given the schedules for cultivation, processing, and freight delivery, is practically impossible. Moonbucks needs to get this right, and its initial concern is inconsistent deliveries. It commissions an assessment of the supplying farms and post-harvest chain. The questions cover land condition, harvest availability and whether drying or storage problems are affecting saleable lots.

This distinction changes the investment brief. A tree-planting proposal cannot be assumed to fix drying problems. Better storage cannot restore eroded land. The team must establish which problem exists before selecting the response.

CCC’s guide to finding nature-based solutions in your supply chain explains where to look. Here, the next task is to turn a broad concern into a testable proposal.

2. Develop nature-based carbon investments around the actual supply chain

The assessment would trace Moonbucks’ purchases back through the exporter and supplying producer groups. Which farms supply the contracted lots? Who controls land-management decisions? How long does the buyer expect to maintain the purchasing relationship?

Furthermore, Jimma natural Grade 4 cannot be treated as interchangeable with every Ethiopian coffee. Moonbucks would need to test any substitute against its own blend and quality requirements.

Suppose Moonbucks’ assessment identifies an opportunity to maintain shade trees and restore vegetation along exposed streambanks. The IPCC describes agroforestry as a way to store carbon in vegetation and soil, with potential benefits for erosion control and water quality.1 Moonbucks would need local advice on species, growing conditions and maintenance before deciding how these measures fit its sourcing plan.

The proposal now has a defined sourcing connection and a candidate intervention. The next steps are to test its effect on production, assess carbon eligibility and build the financial case.

3. Compare the proposal with other ways to protect supply

WBCSD’s Nature-based Solutions Blueprint recommends comparing nature-based options with other responses across their benefits and costs.2 For Moonbucks, that means evaluating the landscape proposal alongside drying improvements, storage controls and alternative sourcing arrangements.

The product’s natural-process designation matters. Moonbucks should examine the drying and dry-milling chain alongside land conditions. Its team would check storage practices, contamination risks and incoming-lot quality to see whether problems arise before or after the coffee leaves the farms.

The revised proposal might combine land stewardship with separate post-harvest controls. Each component needs its own purpose and budget. A sustainability label should not obscure which activity is expected to solve which problem.

The project develops as the evidence improves. Its scope should follow the diagnosis rather than preserve the first idea unchanged.

4. Establish what the carbon outcome could count toward

Moonbucks’ sustainability team now tests the proposed carbon case separately from the sourcing case. Is the objective a measurable change in Moonbucks’ value-chain emissions, verified credits for separate voluntary use, or distinct outcomes under carefully defined arrangements?

Scope 3 covers value-chain emissions. A purchasing relationship alone does not prove that a farm intervention can be included in Moonbucks’ inventory. The team needs an applicable accounting method, defensible boundaries and evidence supporting attribution.

SBTi’s FLAG Guidance (forest, land and agriculture), version 1.2, says purchased credits used as offsets cannot meet near-term FLAG or energy and industry targets. Eligible land-based removals are subject to accounting requirements.3 Moonbucks needs to test its proposal against those rules before including an outcome in its targets.

For Moonbucks’ Jimma proposal, maintaining existing trees and establishing new vegetation could involve different carbon questions. Specialists must examine the baseline and additionality, meaning what changes because the project proceeds. They must also assess measurement and the risk that stored carbon is lost. CCC’s MRV and additionality article introduces those tests.

Until that work is complete, Moonbucks should not budget an assumed Scope 3 reduction or credit-sale receipt. Direct emissions reductions remain the priority.

5. Build a financial case that survives weaker assumptions

Moonbucks’ finance team would now build a multi-year budget. UNEP’s State of Finance for Nature 2023 compares current finance with the investment needed to meet climate, biodiversity and land-restoration goals.4 The company would cost its proposed activities, farmer participation and ongoing monitoring. Verification, where required, is a separate expense. Maintenance and responsibility for replacing failed plantings must remain visible after the initial establishment budget ends.

Operational benefits need equally careful treatment. If fewer rejected lots reduce emergency purchasing, count that saving once. Do not add “supply resilience” as another financial benefit when it represents the same avoided cost.

Moonbucks should compare a base case with slower benefits, higher implementation costs and no carbon revenue. It should also distinguish production outcomes from quality and shipment outcomes. A single good harvest would not prove that the landscape intervention caused better delivery performance.

A project can remain worth funding even when its carbon case needs more work. That decision must rest on the operational evidence and the company’s objectives, without unsupported environmental claims.

6. Fund a pilot with a clear expansion decision

Moonbucks’ first approval would fund a bounded pilot, rather than commit the entire sourcing program. Before spending, Moonbucks would agree on participating farms, responsibilities and the evidence needed at review.

Its scorecard could track farmer participation, implementation costs and plant survival, alongside accepted coffee volumes and lot-quality results. Carbon measurements would follow the selected method. Farm-level traceability must connect the intervention to the actual sourcing relationship.

Suppose Moonbucks’ review later finds that storage changes explain most quality improvements, while the land measures need longer observation. Those findings would shape the next decision: expand the proven component, adjust the landscape work or pause further spending. They would not justify crediting all improvements to tree planting.

This gives nature-based carbon investments a practical place in a multi-year strategy. Funding increases as the evidence supports it, and the project can change direction before a larger commitment.

Discuss a sourcing opportunity with CCC

Carbon Credit Capital’s nature-based supply-chain investment service uses its Dual-Value Model to examine supply-chain economics alongside potential sustainability outcomes.

Schedule a consultation to discuss your sourcing exposure and the questions to resolve before allocating capital.

Sources

  1. Intergovernmental Panel on Climate Change (IPCC), Climate Change 2022: Mitigation of Climate Change, Chapter 7, Agriculture, Forestry and Other Land Uses, section 7.4.3.3 (Agroforestry).
  2. World Business Council for Sustainable Development (WBCSD), Nature-based Solutions Blueprint, 5 June 2024.
  3. Science Based Targets initiative (SBTi), Forest, Land and Agriculture Science-Based Target-Setting Guidance, version 1.2, March 2026, section 3.1.4, pp. 37–38.
  4. United Nations Environment Programme (UNEP), State of Finance for Nature 2023, 2023.
Continue Reading

Carbon Footprint

How to buy plastic credits, and what to check before you do

Published

on

A plastic credit funds the collection of plastic waste in places where no formal system exists to collect it. Each credit represents a measured, independently audited quantity of plastic taken out of the environment or returned to use, tracked on a public registry.

Continue Reading

Carbon Footprint

EU carbon credit claims after 27 September 2026

Published

on

EU carbon credit claims changed on 27 September 2026, the day the Directive (EU) 2024/825 began to apply across the European Union. The change is narrow. It changes how a company can talk about the credits it buys. A product can no longer be called neutral on the strength of compensation alone; however, every specific, evidenced statement about what a company measured, reduced, and funded stays fully available.

Continue Reading

Trending

Copyright © 2022 BreakingClimateChange.com