How do the sustainability efforts of these oil companies contribute to their overall business strategy?

The sustainability efforts of oil companies contribute to their overall business strategy in several ways. Firstly, by reducing their greenhouse gas emissions, they are aligning themselves with global efforts to combat climate change, which can improve their public image and relations with stakeholders. Secondly, investing in renewable energy sources and carbon capture technologies can open up new business opportunities and revenue streams. Lastly, these efforts can also help them avoid potential regulatory penalties and meet any future legal requirements related to environmental sustainability.

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Even oil companies are tracking their GHG emissions now. For example, the oil company Exxon Mobil recently made a pledge to reduce its Scope 1 and Scope 2 emissions through electrification of operations with renewable power. However, other oil companies like Shell, BP and Equinor all made plans to reduce Scope 3 emissions with investments in carbon capture, reforestation, or the sale of hydrocarbon businesses to invest more in renewable sources. Exxon is now a target of activist investors and will likely be pushed harder to accelerate its divestment efforts.

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Sustainability Report (Part 2)

Need to report your sustainability efforts to key stakeholders? Most companies make ESG reports public, and public companies may soon be required by l...

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