Exxon Mobil Corporation – Practical And Theoretical Motivations Towards Mitigating The Impacts Of Climate Change

Introduction to Climate Change Information Request and Exxon Mobil Corporation

Climate Change Information Request is an integrated program of CPD that functions in a way such that companies greenhouse gas emissions can be reduced. They are working hand in hand with companies to mitigate effects of climate change risks (Moser, 2010). Currently they are working with various investors globally with huge assets, collecting information and processing the same to bring about positive impact on our climate. Companies adhering to climate change requests are furnishing their details and answering questions from climate change information requests provided by CPD through an Online Response System (ORS) given in their websites.

In Australia this body is striving tremendously to bring about a positive impact on the climate. The scope of this current report focuses on climate change attributes for Exxon Mobil Corporation (cdn.exxonmobil.com, Retrieved on 22nd August 2017). Exxon Mobil Corporation is an American multinational oil and gas company with its headquarters in Spring, Texas. The Company is making several endeavors to reduce the harmful effects it causes on the environment by having discussions with stakeholder groups and others. The scope of the report thus discuses practical applications as impacted by the Company for bringing a positive change in the environment.   

Practical Motivation:

Climate change 2015 Information Request aims to collect data and information in regards to the Company’s stakeholder group, management and investors along with their specific motivations. Exxon Mobil Corporation being world’s largest traded international gas company has large volumes of gas and oil reserves (Murphy, 2008). They not only has large reserves but also comprise of world’s largest chemical company, who are constantly aiming to transform energy into sustainable modes and methods.

The Company aims to create an existing brand name in the industry. Exxon Mobil Chemical a primarily petrochemical Company that was created by merging of Mobil’s chemical industry with that of Exxon. Apart from manufacturing various chemical products, the Company is into manufacturing of several types of additional chemical products from scientific innovations as well (Stocker, 2014).

The Company wants to become a leader in the innovative domain such that it is able to become a leader in the refining and chemical productions. The Company has been targeted various times for criticism for their environmental lobby group and disagreeing to global warming impacts. Hence, the Company aims to create a positive endeavor in that regards. Developing sustainable fuel and furnishing information to Climate Change Information 2015 CPD can allow the Company become a leading one in its industry (Change., 2014).      

Theoretical Motivation:

Environmental concerns have been a matter of high importance now with large number of changes being brought about in the current domain. Various researches are aimed at attaining of environmental standards of highest levels such that a positive effect can be generated and further deterioration of the climate can be stopped (Chiew, 2009).

Theoretical motivation for the study encompasses aspects that can be accommodate to further develop scientific endeavors for arriving at goals for the study. Legitimacy theory has been selected for the purpose of analysis in this study. Legitimacy theory assumes according to a generalized perception or with assumptions for actions of an organisation with an appropriately developed system of values, beliefs, norms, definitions and so on. Climatic degradation has been a major aspect of theoretical debate as well as scientific inventions in recent times that has led to adopting this project for study.   

Practical Motivation towards Mitigating Climate Change

Climate change has been a rising concern in recent years especially with large numbers of climatic impacts. Exxon Mobil has been various times accused of Greenpeace environmental group lobbying and disagreeing with employee pension funds that disagree with stances on global warming (CHANGE, 2007). ExxonMobil has been ranked to be a leading corporation that emits airborne pollutants in United States, by the Political Economy according to quantity of greenhouse emissions.

However, recently the Company has committed less than 1% of their profits towards innovative measures for alternative energy sources. Scholars have noted that ExxonMobil attributes towards climate change has changed and varied through decades. Since the 1970s and 1980s ExxonMobil funded a broad based research in line with public scientific approach and went on to become a leader in climate change denial. From 2014 the Company accommodated climate change risk by demonstrating its support through carbon tax.

Motivation:

Practical

Dependent variable in this scope of discussion is climate change that can be influenced through corporate endeavors. Leading corporates as ExxonMobil can make significant contribution in developing of treaty or attitude that can have significant effect on the climate. Climate change has typically gained momentum in board meetings as well. With varied range of stakeholders raising concerns related to possible impacts of such climate change in our day to day lives. S.Haque (2010) article, “Corporate climate change?related governance practices and related disclosures: evidence from Australia.”

In the Australian Accounting Review, pages 317 to 333 provides various relevant inputs in regards to governnace related practices in corporations (Haque, 2010). Internal as well as external stakeholders, especially shareholders of ExonMobil has adopted steps in order to include climatic change impacts by developing sustainable forms of energy. ExxonMobil will aim to target this fundamental approach related to climate change at the National level and aim to make positive contribution towards global Climate Coalition. The Company has already made contribution to the Union of Concerned Scientists with an amount of $16 million. Vision related to creating positive effect on the environment is articulated and adopted across the entire organisation.  

Theoretical

Though previous research in the domain aims to accommodate ways and endeavors in which a positive impact on the climate can be generated but specific measures had not been highlighted. J.F.Pittock (2010), “Changing character: the Ramsar Convention on Wetlands and climate change in the Murray-Darling Basin, Australia” (Pittock, 2010). This article poitns out that along with creating accord to reduce future pollutions, there needs to be also steps that can provide reversal of climatic impacts. Meaning that gaps in research exists as ExxonMobil has already provided targets related to superior environmental performance.

There are two theoritcial constructs for the study one aism to diagnose polar ice cap melting with that of emissions from ExxonMobil and another is rise of temperature in Texas in the last 20 years with connection to emissions from ExxonMobil. But it is yet to include certain measures through which it can directly affect the environemnt. Target setting in reagrds to environment is separtae as considered to target setting for financial outcomes. Thus, similar procedures might not be applicable in both the instances, as in case of climatic impacts there needs to be steps that help ressolve conflicts with environment creating a positive discourse.    

Theoretical Motivation towards Mitigating Climate Change

Conflicting previous results

Findings from previous studies demonstrate that impact on climate change is irreversible in nature. Burning of fossil fuels and other gas emissions has created enormous effect on the climate leading to its degradation. Thus, even in case ExxonMobil tries to incorporate positive attributes in creating climatic change such might not be able to create an impact on the climate.

Assigned Theory

CPD is an information brochure that aims to collect data and information in regards to certain company specifics. Such key specifics that are included in the CPD information brochures are the leading factors and motivations that can create a positive effect on the environment. Environmental norms and standards can be highlighted and accommodated such that stakeholders thoughts and activities are reflected through it. P.S. Glick (2011), “Scanning the conservation horizon: a guide to climate change vulnerability assessment” (Glick, 2011). this journal assesses the key vulnerabilities that the environment is expossed to which needs to be adopted in the scope of discussions.

Key theoretical constructs

Dependent variable in the study is the climatic change, which has to be reflected upon. There are various articles and journals that provides relevant aspects and thoughts regarding causes of climate change (Solomon, 2007). While there are many human led causes, primary cause amongst them constitutes burning of fossil fuels.

Independent variable in this theoretical construct constitutes emissions from ExxonMobil. ExxonMobil has been burning high quantities of fossil fuels that has been negatively impacting the environment since ages. Carbon footprints associated with such burning is also high leading to polar caps melting and other climatic changes globally.

The study aims to create a relationship by establishing ways independent variable (IV) which constitutes emissions from ExxonMobil has a relationship with dependent variable (DV) which is the climatic change (Timbal, 2009). While burning of fossil fuel alone from ExxonMobil cannot create an impact on the environment however, burning large quantities of such has tremendous potential to cause impact on the environment. ExxonMobil has been steadily burning large quantities of fossil fuels and releasing them in the atmosphere such that there are high amounts of pollutants generated. Data will be primarily collected from historical timeframes such that prolonged effects of climate change can easily be depicted.   

  Another variable for the model of the study will include time duration through which ExxonMobil makes such harmful emissions in the environment. Based on previous researches done by scholars refers time frame as an integral variable which can cause significant effect on the environment. Prolonged emissions are bound to generate more effect considered to reduced effect from emissions.

Hypothesis for the another study would include time frame of emissions connection to climatic change impacts. While emissions are bound to create harmful environmental impacts, prolonged usage of such harmful chemicals and realising them into the atmosphere without filtering can cause significant harm. Oil spills, degradation of the local environment and other nearby concerns in Texas ExxonMobil are some other impacts caused by the Company.  

Hypotheses

In order to form research hypothesis, the following research questions needs to be attempted;

Importance of Target Setting for Environmental Performance

Research Question 1: What is the climatic impact of exhaust from ExxonMobil?

Research Question 2: What ways are the climatic impact strategized into business objectives?  

Research Question 3: What are the geographical areas included in the analysis?

Research Question 4: What emission reduction activities did the organisation implement in the current year?

There will be two hypothesis that will be included in the scope of discussion, null hypothesis (H0) and alternate hypothesis (H1). The null hypothesis assumes that there will be no change on dependent variable, which constitutes the climate change by the independent variable which is the emissions from ExxonMobil. The assumption for alternate hypothesis is that dependent variable which is climate change will be impacted by means of the independent variable which are the emissions from ExonMobil. The study will aim to validate Alternate Hypothesis and reject the Null Hypothesis.

Proxy Measures for Theoretical Constructs

Theoretical Construct	Proxy measure	Dependent (DV), Independent (IV), or Control Variable (CV)	Source
Impact on Polar Ice Cap Melting	Rising sea-levels, reducing ice in Antarctic region	DV-Polar Cap Melting IV-Emissions from ExxonMobil	ExxonMobil CPD data
Rising temperature near Texas region	Temperature measures	DV-Temperature Records IV-Emissions from ExxonMobil	Scientific data measures and collection

Research Method

In order that results of the study are analysed and arrived at appropriately, it becomes integral for scholars to include relevant research methods. A research method is a philosophy that allows for appropriate theoretical developmental framework such that data collection procedures can be entailed and appropriate findings for the study can be arrived at. A research philosophy that has been applied in the current scope of the study is explorative method. This method collects data and then utilizes them to reflect upon thoughts as well as processes. An explorative study is a suitable framework that allows for integration of practical concepts with theoretical ones.

Then inductive reasoning has been applied to arrive at results for the study. Data has been collected mostly from secondary sources, which is a second hand type of data, as due to lack of time first hand data could not be collected. Secondary data regarding Exxon Mobil has been obtained from websites, journals, company magazine of Exxon Mobil. Such collected data was qualitative as well as quantitative in nature and allowed for appropriate arriving at results for the study. For quantitative data analysis, statistical techniques and procedures has been applied. Filled up CPD questionnaire is the primary data collection method that had been used to arrive at findings for the study.      

Reference Lists

cdn.exxonmobil.com. (Retrieved on 22nd August 2017). Exxon Mobil Corporation. https://cdn.exxonmobil.com/~/media/global/files/energy-and-environment/2015_cdp_response-pdf.pdf.

CHANGE, O. C. (2007). Intergovernmental panel on climate change. In World Meteorological Organization. Disponible en: https://wmo. insomnation. com/sites/default/files/documents/meetings/session20/doc2. pdf.

Change., I. P. (2014). Climate Change 2014–Impacts, Adaptation and Vulnerability: Regional Aspects. Cambridge University Press.

Chiew, F. H. (2009). Estimating climate change impact on runoff across southeast Australia: Method, results, and implications of the modeling method. Estimating climate change impact on runoff across southeast Australia: Method, results, and implications of the modeling method.

Glick, P. S. (2011). Scanning the conservation horizon: a guide to climate change vulnerability assessment.

Haque, S. &. (2010). Corporate climate change?related governance practices and related disclosures: evidence from Australia. Australian Accounting Review, 317-333.

Moser, S. C. (2010). A framework to diagnose barriers to climate change adaptation. Proceedings of the National Academy of Sciences, 22026-22031.

Murphy, B. F. (2008). Murphy, B. F., & Timbal, B. International journal of Climatology, 859-879.

Pittock, J. F. (2010). Changing character: the Ramsar Convention on Wetlands and climate change in the Murray-Darling Basin, Australia.

Solomon, S. Q. (2007). Technical summary.

Stocker, T. (. (2014). Climate change 2013: the physical science basis: Working Group I contribution to the Fifth assessment report of the Intergovernmental Panel on Climate Change. Cambridge University Press.

Timbal, B. F. (2009). Generalization of a statistical downscaling model to provide local climate change projections for Australia. . Environmental Modelling & Software, 341-358.