(Bloomberg) -- Exxon Mobil Corp. will ramp up spending on low-carbon energy by a factor of four just months after activist investor Engine No. 1 replaced a quarter of the oil giant's board.
Exxon will spend about $3 billion a year on climate-friendly investments through 2027, compared with a previous target that would have spread that spending out over the course of five years. The Irving, Texas-based company also said Friday that it will announce new emissions targets this year after reaching its previous goal four years ahead of schedule.
The Western world's largest oil driller shift to pursuing more green technology is a clear sign the new directors are already having an impact on corporate strategy. Given that Exxon's long-term capital budget is unchanged at $20 billion to $25 billion annually, the new money for low carbon projects means less funds available for fossil-fuel developments.
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