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Meeting global needs - managing climate change business risks | ExxonMobil Page 5 of 6
will reach about $80 per metric ton in 2040. Developing nations will have
a wide range of policy costs with the wealthiest ones reaching about $35
per metric ton.
This GHG proxy cost is integral to ExxonMobil's planning, and we believe
the policies it reflects will increase the pace of efficiency gains and the
adoption by society of lower-carbon technologies through 2040. Such
policies are also likely to accelerate the growth of lower carbon sources
of energy like natural gas and renewables, while suppressing the supply
of coal.
A key strategy to ensure investment selectivity under a wide range of
economic assumption is to maintain a diverse portfolio of oil and gas
investment opportunities. This diversity in terms of resource type,
corresponding development options (oil, gas, natural gas liquids,
onshore, offshore, deepwater, conventional, unconventional, liquefied
natural gas, etc.) and geographic dispersion is unparalleled in the
industry. The company does not believe current investments in new
reserves are exposed to the risk of stranded assets, given the rising global
need for energy.
Physical risk
While most scientists agree climate change poses risks related to
extreme weather, sea-level rise, temperature extremes, and precipitation
changes, current scientific understanding provides limited guidance on
the likelihood, magnitude, or time frame of these events. Anticipating the
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http://corporate.exxonmobil.com/en/cuiTent-issues/climate-policy/climate-perspectives/man... 8/1/2016