Direct Methane Measurement
Whereas, methane is at least 80 times more potent as a greenhouse gas than carbon dioxide over a 20-year period. The Environmental Protection Agency (EPA) reports that 32% of U.S. methane emissions from human activities comes from natural gas and petroleum systems.1 According to the United Nations Environment Programme (UNEP), cutting methane is the strongest lever we have to slow climate change over the next 25 years 2
The EPA methodology used to estimate methane emissions underestimates and fails to capture many major leaks, which waste a valuable product worth over $2 billion per year. Studies have found actual emissions to be 50 to 100% higher than reported emissions.3 In certain basins, emissions are more than 10 times industry-disclosed figures.2 Therefore, oil and gas industry Scope 1 emissions may be significantly higher than currently reported. Methane emissions estimates improve when direct measurement methodologies are used, when emissions are identified by source type and at a site or facility level, and then reconciled, as shown by the Oil and Gas Methane Partnership 2.0 (OGMP).4
The U.S. joined the Global Methane Pledge in 2021, committing to use best available inventory methodologies to quantify methane emissions. The same year, investors managing more than $6 trillion supported strong federal methane regulations. Companies responsible for approximately 30% of global natural gas production, including bp, Shell, TotalEnergies, Occidental, and ConocoPhillips, have joined the OGMP, a multi-stakeholder initiative launched by UNEP committed to improving methane data quality and consistency.5 Companies that do not adequately manage methane emissions risk their reputation and license to operate.
ExxonMobil has committed to reduce methane emissions in alignment with the Global Methane Pledge by deploying best practices and advanced technologies, including satellite, aerial, and ground-sensor networks 6 The Company supports strong measurement, reporting and verification standards. It participates in various international methane coalitions and contributes to research to improve methane quantification.7 However, it has not taken the critical step to reduce investor concerns by reporting on its methane emission measurements.
Resolved, shareholders request that ExxonMobil issue a report analyzing the reliability of its methane emission disclosures. The report should:
Be made public, omit proprietary information, and be prepared expeditiously at reasonable cost; and
Summarize the outcome of efforts to directly measure methane emissions, using recognized frameworks such as OGMP; and whether those outcomes suggest a need to alter the Company’s actions to achieve its climate targets.
1 https://www.epa.gov/ghgemissions/overview-greenhouse-gases
2 https://www.ccacoalition.org/sites/default/files/press/GMA%20Press%20Release%20FINAL.pdf
3 https://www.seas.harvard.edu/news/2021/03/oil-and-natural-gas-production-emit-more-methanepreviously-thought, https://www.nature.com/articles/s41467-021-25017-4
4 https://business.edf.org/files/Investors-Guide-to-the-OGMP_09.17.21_FINAL.pdf
5 http://ogmpartnership.com/partners
6 https://corporate.exxonmobil.com/climate-solutions/advancing-climatesolutions#:~:text=Net%2Dzero%20ambition,Scope%202%20greenhouse%20gas%20emissions
Supporting Statement:
At management’s discretion, we recommend that the report:
Describe the types of source- and site-level measurements used;
Describe any material difference between its own or third-party direct measurement results and Company’s reported methane emissions;
Describe plans to validate emissions estimates and disclosure through third-party audit or evaluation; and
Describe plans to improve emission estimates over time, consistent with frameworks such as OGMP.