ExxonMobil’s strategic disclosure dilemma

This case challenges you to critically evaluate ExxonMobil’s climate disclosure strategy following its January 2022 net-zero pledge, which notably omits Scope 3 emissions. It examines whether the company’s public commitments reflect a meaningful strategic shift or a continuation of legacy practices under a revised narrative. It further evaluates whether the company’s continued fossil fuel investments, its acquisition of Pioneer Natural Resources, and its rejection of climate-related shareholder proposals in 2023 are consistent with its stated climate commitments. These developments occurred alongside or shortly after the net-zero pledge, prompting questions about the alignment between disclosure and strategic direction. The case also considers how ExxonMobil’s long-standing posture toward climate science may influence stakeholder perceptions of its current strategy. In addition, it highlights the technical and conceptual challenges involved in measuring emissions, assessing risk, and aligning disclosure practices with evolving reporting frameworks. Through this analysis, you explore the financial, operational, and reputational dimensions of ESG reporting. The case is suitable for upper-level undergraduate and MBA courses in financial reporting, corporate governance, and sustainability accounting. It is designed to develop your ability to interpret ESG disclosures, assess climate-related risk, and evaluate the credibility of strategic commitments in the context of evolving stakeholder expectations and regulatory change.