How are businesses (TNCs) responding to climate change?
Specifically targeting CO2 emissions
Use of a simple cost of carbon pricing, implied cost of $80 per metric tonne of CO2 in 2040. Policy to lower GHG emissions by increasing energy efficiency and managing flaring and venting in their operations in the short term Implementing proven reduction technologies in the medium term Developing breakthrough technologies in the long term.
One of the most effective ways for society to lower GHG emissions is through the use of natural gas in electric power generation.
Improving Energy Efficiency
In 2012, energy used in our operations totalled 1.5 billion gigajoules, which remains unchanged relative to our 2011 energy usage. Since 2000, Exxon used Global Energy Management System (GEMS) in the Downstream and Chemical business lines. From 2002 to 2012, Exxon improved energy efficiency by approximately 10% in refining and 12% in chemical manufacturing. System improvements reduced steam consumption by 90 tons per month, a 20% reduction. At many of our sites, recovering waste heat to generate needed steam provides heat to processes of additional fuel. Working with Imperial Oil campus to incorporate sustainable design practices into the construction process.
Managing Climate Change Risks
ExxonMobil are working to stabilize CO2 emissions at 450ppm, without intervention this could raise past 550ppm and put the environment past the ‘tipping point’ There are large costs involved in reducing CO2 emissions - probably be passed onto the consumer, maintaining profits. E.g. $100 cost per metric tonne of CO2 would add $40 to the cost of a barrel of oil. There are certain risks and limitations, like an inability to work in a certain country, or forecasting the demand and supply of oil or gas. A government may only focus on alternative energy sources- these all raise costs and mean that CO2 reducing methods will not be used in those countries. To reduce...
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