The United Nations (UN) Intergovernmental Panel on Climate Change (IPCC) recently released its sixth report (Sixth Assessment Report – AR6) in a series of reports that assess scientific, technical, and socio-economic information concerning climate change
The report highlights that human influence has warmed the climate at a rate that is unprecedented in at least the last 2,000 years. Key findings include:
In 2019, atmospheric CO2 concentrations were higher than at any time in at least 2 million years, and concentrations of methane and nitrous oxide were higher than at any time in the last 800,000 years
Global surface temperature has increased faster since 1970 than in any other 50-year period over a least the last 2,000 years
Global mean sea level has risen faster since 1900 than over any preceding century in at least the last 3,000 years
Greenhouse gas emissions from human activities are responsible for approximately 1.1°C of warming between 1850 and 1900
Averaged over the next 20 years, the global temperature is expected to rise by 1.5°C or more
Company details and current scenario
ExxonMobil is one of the largest oil and gas companies in the world
ExxonMobil has invested in green/clean energy, most notably in Carbon Capture and Storage (CCS), where it is the global leader and significantly ahead of competition
However, ExxonMobil has also received criticism for not doing enough in this area: https://www.nsenergybusiness.com/features/oil-companies-renewable-energy/
Problem statement
Following the publication of the AR6 report and in the backdrop of the COP26 – Glasgow conference, hypothetically, ExxonMobil has now decided to make a major push into clean/renewable energy and to reduce its carbon footprint through an investment of US$30 billion in the next three years
They have hypothetically hired your team to help them create an investment roadmap
Key Objectives (based on the above hypotheses)
The aim of the investments are twofold:
Derive a greater share of revenues from clean/green energy and reduce their carbon footprint
Drive growth and profits from these investments
Key decisions to be made
Which areas of clean/green energy should ExxonMobil focus on, e.g., CCS, solar, wind, nuclear, etc.?
In which countries should it invest to take maximum advantage of the eco-friendly regulatory environment?
What should the nature of its investments be – organic or inorganic?
Where, how, and at what pace should it invest the $30 billion over the next three years?
Are there any feasible innovative / outside-the box ideas that can provide exponential growth or profit while still being related to clean energy and carbon footprint reduction?
Submission Process
MS PowerPoint deck, with supporting Excel, if needed
The deck should be designed assuming that you are an Everest Group analyst making a presentation to the senior ExxonMobil management team, including the Chief Executive
Deck structure
Cover slide: select a team name with two members in each team; include the team name and team member names on the cover slide
Slide 2: executive summary – key recommendations on the case solution
Four to five pages of detailed content supporting your findings
Evaluation Criteria
Good structuring with sufficient breadth and depth to the solution
Clarity of thought with frameworks and numerical analysis, if and where necessary
Quality of executive summary (ability to succinctly cover key points)
Feasible outside-the-box / innovative ideas
Visual layout (a deck worthy of presenting to the CXO level)
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