SUSTAINABILITY REPORT HIGHLIGHTS - EXXONMOBIL
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Sustainability Report Highlights In response to the COVID-19 pandemic, ExxonMobil temporarily reconfigured manufacturing operations in Louisiana to produce, blend, package and distribute hand sanitizer.
2 | Sustainability Report Highlights Table of Contents 04 08 15 28 34 03 U.N. Sustainable Development ENVIRONMENT SOCIAL GOVERNANCE 34 Case study: COVID-19 response Goals 09 Excerpt: ExxonMobil 2021 16 Safety 29 Ethics and integrity 38 About the Sustainability 04 Chairman’s letter Energy & Carbon Summary 19 Healthy and engaged workforce 30 Board leadership Report Highlights 05 ExxonMobil and sustainability 11 Plastic waste management 22 Human rights 32 Engaging with governments 39 Performance data 06 2019 global operations 25 Community investments 07 Stakeholder engagement Sustainability Report Highlights On the cover Editor’s Note: This publication was issued in January 2021, using the latest set In response to the COVID-19 pandemic, ExxonMobil temporarily reconfigured manufacturing of full-year performance data (2019). The next report will include YE2020 data. operations in Louisiana to produce, blend, package and distribute hand sanitizer. Outlooks, projections, estimates, goals, descriptions of business and community plans, research efforts and other statements of •Political and regulatory factors, including war, government responses to separate waves of the COVID-19 pandemic, security disturbances, national tax policies, trade policies, environmental policies and the impact of future events or conditions in this report are forward-looking statements. Actual future results, including financial and operating international accords and treaties; performance, returns to investors and other areas of financial and operating performance, future global energy supply, demand •Changes in population size, purchasing power and consumer preferences; growth and mix, the impacts of the COVID-19 pandemic and its impact on global demand, future distributions, proved and •The timely completion of current exploration, development and construction projects; other reserves, reserve and resource additions and recoveries, the future effectiveness of safety, health, environmental and other •Actions of competitors, including the development of competing product or emission technologies; sustainability risk and impact management processes, efficiency gains, and the timing and impact of future technologies on •The outcome of current and future research efforts and the ability to bring new technologies to commercial scale on a cost-competitive basis; capital efficiency, production and greenhouse gas emissions could differ materially due to factors, including: •Technical and operating factors; and; •Changes in global or regional demand, supply and pricing for oil, natural gas, chemicals, feedstocks and other pricing factors •Other factors discussed in the document, Factors Affecting Future Results. affecting the oil, natural gas, petroleum and petrochemical industries such as regional or global supply and demand imbalances and differentials; All forward-looking statements are based on management’s knowledge and reasonable expectations at the time of publication, and we assume no duty to update these statements as of any future date. Exxon Mobil Corporation has numerous affiliates, with many names including ExxonMobil, Exxon, Mobil, Esso and XTO Energy. For convenience and simplicity, those terms (and terms such as corporation, company, our, we and its) are sometimes used as abbreviated references to specific affiliates or affiliate groups. ExxonMobil is a publicly traded company. The New York Stock Exchange is the principal exchange on which Exxon Mobil Corporation common stock (symbol XOM) is traded. References to the resources, resource base, and recoverable resources, along with similar terms refer to the total remaining estimated quantities of oil and natural gas that are expected to be ultimately recoverable. ExxonMobil refers to new discoveries and acquisitions of discovered resources as resource additions. The resource base includes quantities of oil and natural gas classified as proved reserves, as well as quantities that are not yet classified as proved reserves, but that are expected to be ultimately recoverable. The term “resource base” is not intended to correspond to SEC definitions such as “probable” or “possible” reserves. The term “in-place” refers to those quantities of oil and natural gas estimated to be contained in known accumulations and includes recoverable and unrecoverable amounts. “Potential” resource amounts are not currently included in the resource base. The term “project” as used in this release can refer to a variety of different activities and does not necessarily have the same meaning as in any government payment transparency reports.
3 | Sustainability Report Highlights Addressing the United Nations Sustainable Development Goals The United Nations has adopted the Sustainable Development Goals (SDGs) to achieve significant progress on global economic, social and environmental challenges by 2030. Although directed at governments, the private sector and civil society play an important role in support of governments’ national plans. ExxonMobil contributes to certain aspects of all 17 SDGs. In this report, we feature eight SDGs to which we are making significant contributions. For additional information, visit the Sustainability Report content index.
4 | Sustainability Report Highlights Chairman’s letter At ExxonMobil, we strive to deliver superior results We also plan to align with the World Bank’s initiative to while providing products and services that are eliminate routine flaring by 2030 – a continuation of the strict flaring protocols we adopted for our U.S. unconventional essential to the health and welfare of billions of people operations in 2019 – and we proposed a model regulatory around the world. How we achieve these results is framework for our industry to mitigate methane emissions from as important as the results themselves. That is why new and existing oil and gas operations. we are committed to operating our businesses in a The steps we are taking to reduce emissions reflect responsible and sustainable manner, supplying ExxonMobil’s commitment to addressing the risks of climate high-quality products, working to minimize change. We also continue to invest in lower-emission environmental impacts and supporting the technologies, such as carbon capture and advanced biofuels, which are necessary for society to achieve its ambition for net communities where we live and work. zero emissions by 2050. These efforts are outlined in our latest Sustainability Report Other key dimensions of sustainability performance include: and its companion publication, the Energy & Carbon Summary, which showcases efforts to reduce greenhouse gas emissions. • Taking action to help society address plastic waste in the environment by working on advanced recycling solutions Few would disagree that one of the most urgent societal and having no reportable plastic pellet losses for two Darren W. Woods, Chairman and Chief Executive Officer. challenges we face today is addressing the risks of climate consecutive years; change. How we meet the world’s demand for the energy • Achieving a historically low rate of high-consequence necessary for economic growth while mitigating the long-term injuries, extending a multiyear improvement trend We boosted production of isopropyl alcohol, the key impact on our environment is key to our sustainable future. • Increasing representation of women executives by ingredient in hand sanitizer, and polypropylene, critical for 69 percent since 2009; • Increasing representation of minority executives in the the manufacture of medical masks and surgical gowns. We are making progress in this area through a variety of actions United States by 80 percent since 2009; One of our U.S. manufacturing facilities even temporarily including enhancing energy efficiency across our operations, • Contributing more than $250 million in communities reconfigured its operations to directly manufacture hand improving leak detection and repair and increasing cogeneration worldwide to address key needs such as health care, sanitizer to meet increased demand. capacity at manufacturing facilities. disaster relief, education and economic development; • Expanding human rights training with more than Further details on our response to the pandemic, our overall As a result of these efforts, we expect to meet our goal to 1,800 employees across 49 countries completing sustainability efforts and our work to manage the risks of decrease methane emissions by 15 percent and flaring by training since 2015. climate change are included in our Sustainability Report 25 percent by 2020, compared to 2016 levels. We recently and Energy & Carbon Summary. I hope you find these outlined a new five-year plan to further reduce greenhouse gas These actions demonstrate our commitment to responsibly reports useful and informative in understanding more about emissions from our operations in support of the goals of the and sustainably running our businesses and the resilience and ExxonMobil’s positive contribution to society. Paris Agreement. excellence of our people who respond and adapt to new challenges. Thank you for your interest, and we welcome your feedback. We plan to reduce the intensity of our operated upstream greenhouse gas emissions by 15 to 20 percent by 2025, Sincerely, That adaptability was critically important in responding to compared to 2016 levels. This plan will be supported by a the COVID-19 global pandemic. I am proud of the way our 40 to 50 percent decrease in methane intensity, and a company and our people delivered assistance to governments, 35 to 45 percent decrease in flaring intensity across our global health care personnel and first responders around the world Darren W. Woods operations. Ultimately, we aim for industry-leading greenhouse while safely providing an uninterrupted supply of vital Chairman and Chief Executive Officer gas performance across our businesses by 2030. energy products.
5 | Sustainability Report Highlights Env iro nm en t aging the risks Man imate change of cl e E nc ExxonMobil and sustainability na p nv form ver e gov orat iro ce er Go an nm nce p ern Cor enta ExxonMobil is committed to producing the energy and a l chemical products that are essential to modern life and economic development, in a way that helps protect people, Sustainability supply the environment and the communities where we operate. deve in m place e w h e al th This includes mitigating the risks of climate change. Lo cha lo p ork Meeting this dual challenge will be even more important ca t me nag y, l et in the coming decades as growing populations and global an n af S a th em d d economic expansion are expected to drive energy demand en C o m m u ni t y an t e n ga higher. This report provides a summary of the key dimensions ge m e nt an d of sustainability: our environmental, social and governance h u m a n r ig h t s (ESG) performance. Social
6 | Sustainability Report Highlights 2019 global operations ExxonMobil maintains a diverse portfolio of resources, projects and assets across our businesses. PR O D U C TIO N RE FINING + S UPPLY C HEM I C AL UPSTREAM: We are one of the largest producers of oil and DOWNSTREAM: We are one of the largest integrated CHEMICAL: ExxonMobil is one of the largest chemical natural gas, and have an active presence in 45 countries where refiners and manufacturers of fuels and lubricants, as well as companies. We have manufacturing operations in 12 countries we explore, develop, produce and/or market hydrocarbons. a leading marketer of petroleum products and finished and a unique portfolio of high-performance products. lubricants. We have refining and lubricant blending facilities in 22 countries. C R U D E O I L A N D N AT U R A L G A S F E E DS TO C K S 4.0M oil-equivalent barrels of net oil and gas production per day † 5.5M barrels of petroleum product sales per day ‡ 26.5M tonnes of chemical prime product sales ‡ Natural Gas Asphalt Adhesives & sealants Natural Chemical Feedstocks Agriculture Gas Liquids Diesel Automotive Oil Fuel Oil Building & construction Gasoline Compounding Jet Fuel Consumer products Lubricants Healthcare & medical Hygiene & personal care Industrial applications Lubricants Oil & gas Packaging
7 | Sustainability Report Highlights Stakeholder engagement ExxonMobil works to foster mutual understanding, trust and cooperation with stakeholder groups on sustainability topics. We interact with a variety of stakeholders via community meetings, digital and social media, and one-on-one discussions. Maintaining an open dialogue provides opportunities to listen to concerns, discuss approaches and share plans. Across stakeholder groups, from communities and nongovernmental organizations to employees and shareholders, we continue to see broad interest in our environmental, social and governance performance. The table below highlights our key stakeholder groups, their typical areas of interest and our engagement approach. Stakeholder groups Common areas of interest Engagement approach Communicate with local residents in areas where we operate through direct correspondence and group meetings Air emissions Environmental performance Dedicate personnel responsible for community engagement, as well as receiving, tracking, analyzing and responding to Community investments Grievance management potential community concerns Communities Economic development Human rights Establish channels for communities to provide input or seek information Education Operational impacts Use social media platforms to share project updates Employment opportunities Contributed $253 million to communities around the world in 2019 Developing innovative Supply chain management Collaborate with our customers to identify potential solutions to sustainability issues Customers products and technology Sustainability and Cultivate an open dialogue with our customers and educate them about the market-based approach to sustainable solutions Safety environmental performance Provide customer service contact numbers and support marketing teams in responding to customer questions Support the professional development of our employees globally Benefits Professional development Invest in worker health by providing voluntary health programs Employees Diversity and inclusion Safety Share feedback and raise topics of interest through managers, internal surveys, company forums and a confidential hotline Health and wellness Workplace security Support employee-led resource groups that foster a culture of diversity and inclusion Use social media platforms to share information Energy supply and security Safety Environmental performance Taxes and other revenue sources Engage host governments to maintain the safety and security of operations while respecting human rights Climate change Human rights Monitor and participate in transparency initiatives in countries where we operate Governments Employment opportunities Health and wellness Meet with representatives and leaders to provide information and insights on policies that may affect our business Ethics and integrity Diversity and inclusion Work to support responsible economic, energy and environmental policies and help identify solutions Impact assessments Education Local supplier development Collaborate on technical projects of mutual interest Climate change Transparency Conduct one-on-one meetings Nongovernmental Environmental performance Economic development Engage in corporate and foundation philanthropic activities with nongovernmental organizations organizations Human rights Health Participate in conference events to exchange views, information and expertise Social issues Education Participate in multi-stakeholder initiatives to enable progress on key policy issues Partner with grantees to improve health, education and job opportunities in local communities Engage directly with shareholders to understand input and feedback, including shareholder proposals Board composition Governance practices Disseminate information to our shareholders through SEC filings, investor days, investor presentations and other publications Business performance Policy engagement Shareholders Climate change Risk management Enable engagement between non-employee directors and shareholders, and facilitate communication from any interested party to non-employee directors via our corporate governance page Environmental performance Host annual shareholder meetings to share information on company highlights and answer questions from shareholders Local business opportunities Expectations for suppliers Hold sessions with suppliers to provide information on our safety, environmental and human rights practices Local supplier development Diversity and inclusion Participate in organizations dedicated to building local supplier capabilities Share our supplier, vendor and contractor expectations Suppliers Operational integrity Supplier training Safety Human rights Conduct regular supplier audits and anti-corruption due diligence in relevant countries Environmental performance Support U.S. businesses owned by traditionally underrepresented groups through our U.S. supplier diversity database and supplier forums
8 | Sustainability Report Highlights ENVIRONMENT ExxonMobil’s diverse portfolio of projects requires us to work in remote and sensitive environments, including deepwater and areas of high biodiversity. Our environmental management approach is guided by an understanding of the potential environmental and socioeconomic impacts of our operations and a commitment to develop, maintain and operate projects sustainably, using appropriate standards that enable us to ‘Protect Tomorrow. Today.’ A Steller’s sea eagle flies near our Orlan platform, part of the Sakhalin-1 operation in far Eastern Russia.
9 | Sustainability Report Highlights ENVIRONMENT EXCERPT: EXXONMOBIL 2021 ENERGY & CARBON SUMMARY ExxonMobil has a long history of responsibly meeting EXXONMOBIL’S CLIMATE STRATEGY society‘s evolving need for energy in a reliable and sustainable manner. With a longstanding commitment to investments Mitigating emissions in Company operations in technology and the ingenuity of its people, the Company • ExxonMobil’s greenhouse gas emissions have declined approximately 5 percent is well positioned to continue to provide the energy that is from 2010 to 2019 due to energy efficiency improvements, and reductions in flaring, venting and fugitive emissions. essential to improving lives around the world, while managing the risks of climate change. • At year-end 2020, the Company expected to achieve the emission reduction goals outlined in 2018. These included: – 15 percent reduction in methane emissions versus 2016 levels, and About the Energy & Carbon Summary – 25 percent reduction in flaring versus 2016 levels. • The Company aims for industry-leading greenhouse gas performance across its The Energy & Carbon Summary outlines ExxonMobil’s approach to managing climate risks, businesses by 2030, and recently announced new emission reduction plans for including Board of Directors oversight, technology investments and actions to reduce greenhouse 2025, which are projected to be consistent with the goals of the Paris Agreement. gas emissions. It highlights the Company’s commitment to advancing sustainable, effective solutions that address the world’s growing demand for energy and the risks of climate change. • The 2025 plans include a 15 to 20 percent reduction in greenhouse gas intensity of upstream operations compared to 2016 levels. This will be supported by a: Positioning for a lower-carbon energy future – 40 to 50 percent reduction in methane intensity, and – 35 to 45 percent reduction in flaring intensity. Under most third-party scenarios that meet the objectives of the Paris Agreement, oil and natural gas continue to play a significant role for decades in meeting increasing energy demand of a • The Company’s upstream operations also plan to align with the World Bank’s growing and more prosperous global population. ExxonMobil will play an important role in meeting initiative to eliminate routine flaring by 2030. society’s need for energy and at the same time is committed to supporting efforts to mitigate the • The 2025 emission reduction plans are expected to reduce absolute greenhouse risk of climate change, as reflected in the four pillars of the Company’s climate strategy: gas emissions by an estimated 30 percent for the Company’s upstream business. Similarly, absolute flaring and methane emissions are expected to decrease by • Mitigating emissions in Company operations. 40 to 50 percent. The emission reduction plans cover Scope 1 and Scope 2 • Providing products to help customers reduce their emissions. emissions from assets operated by the Company. • Developing and deploying scalable technology solutions. • Proactively engaging on climate-related policy. For more information, visit exxonmobil.com/energycarbonsummary.
10 | Sustainability Report Highlights ENVIRONMENT EXCERPT: EXXONMOBIL 2021 ENERGY & CARBON SUMMARY EXXONMOBIL’S CLIMATE STRATEGY, continued Providing products to help customers reduce their emissions • The Company continues to engage in efforts to encourage sound and constructive policy solutions that reduce climate-related risks across the economy at the lowest cost to society, such as supporting the regulation of methane from new and existing sources. • ExxonMobil is responding to product demand growth by delivering solutions that enable customers to meet product performance requirements while reducing greenhouse gas emissions. These products and solutions include: natural gas, Governance and oversight lightweight materials and packaging, and advanced fuels and lubricants. Strong governance is essential to the long-term viability of ExxonMobil’s business. Within the Company’s robust governance framework, a rigorous risk-management approach is applied to Developing and deploying scalable technology solutions identify and address risks associated with the business. Importantly, the Board of Directors and its various committees are highly engaged and have oversight of risk management, including as • Commercially viable technology advances are required to achieve the Paris it applies to climate. The Board regularly receives updates from internal and third-party experts Agreement objectives. ExxonMobil’s sustained investment in research and on climate science and policy, evaluates climate risk in the context of overall enterprise risk, development is focused on society’s highest-emitting sectors of industrial, power including other operational, strategic and financial risks, and considers the interactions among generation and commercial transportation, which together account for 80 percent of global CO2 emissions, and for which the current solution set is insufficient. these factors, which includes in-depth analyses by Board committees. • ExxonMobil is working to develop breakthrough solutions in areas such as carbon Conclusion capture, biofuels, hydrogen and energy-efficient process technology. The 2021 Energy & Carbon Summary contains additional detail on all of the areas described • Over the past two decades, ExxonMobil has invested more than $10 billion to above. It updates and enhances last year’s report, and includes a Frequently Asked Questions research, develop and deploy lower-emission energy solutions, resulting in highly section as well as metrics, annual Scope 1 and Scope 2 emission data, and a new provision of efficient operations that have eliminated or avoided approximately 480 million Scope 3 emissions. tonnes of CO2 emissions – the equivalent of taking 100 million passenger vehicles off the road for a year. ExxonMobil supports the aims of the 2015 Paris Agreement and efforts to achieve net-zero emissions. The pillars of ExxonMobil’s climate strategy, the investments the Company is making in lower-emission technologies, and the actions taken to reduce emissions across its operations Proactively engaging on climate-related policy are consistent with these global efforts. • Recognizing climate change is a global issue that requires collaboration among ExxonMobil strives to deliver superior results while providing products and services that are governments, private companies, consumers and other stakeholders to create meaningful solutions, ExxonMobil has participated in the Intergovernmental Panel essential to the health and welfare of billions of people around the world. The Company is on Climate Change (IPCC) since its inception in 1988, is a founding member of the committed to providing reliable and affordable energy to support human progress while Climate Leadership Council, and is part of the Oil and Gas Climate Initiative. advancing effective solutions that address the risks of climate change. ExxonMobil is working to be part of the solution. For more information, visit exxonmobil.com/energycarbonsummary.
11 | Sustainability Report Highlights ENVIRONMENT Plastic waste management ExxonMobil shares society’s concern about plastic waste in the environment. Plastics provide significant sustainability benefits versus alternative materials and will continue to play an important role in helping society mitigate greenhouse gas emissions (see sidebar, page 13). They should not end up as litter, either in our oceans or anywhere else in the environment. Industry, governments, nongovernmental organizations and consumers must work collaboratively to encourage appropriate recycling, reuse and recovery of plastic waste. Demand for plastics is increasing around the world at rates greater than GDP, due to the rapid growth in the global middle class and the many benefits that plastics bring to society. For example, plastics help provide for the safe production, distribution and preservation of food and water. They help reduce the weight of automobiles to improve fuel efficiency, which enables consumers to reduce their environmental footprint. And they are critical components to many life-saving products in the medical industry, including facemasks, shields and gowns for medical professionals treating patients with COVID-19 and other medical conditions (see case study, page 34). Plastic waste in the environment is part of a larger issue related to global waste management infrastructure. At least 3 billion people worldwide lack access to formal waste disposal facilities. As a result, a significant amount of solid waste makes its way into the environment. According to a 2018 estimate from the World Bank, about 12 percent of the global municipal solid waste stream is plastic. ExxonMobil is taking action to help address plastic waste in the environment by increasing plastic recyclability and supporting improvements in plastic waste recovery, for example, through our founding membership in the Alliance to End Plastic Waste. We are also working on advanced recycling solutions that create and capture value from plastic waste with opportunities for lower overall greenhouse gas emissions over the full life cycle of the plastic. In addition, minimizing pellet loss from our operations is integral to our commitment to responsible operations. Plastics are important to our society and should never end up as litter in our environment.
12 | Sustainability Report Highlights Increasing plastic recyclability ExxonMobil is creating innovative products that help society reduce plastic waste by meeting consumers’ performance needs with less material, developing new materials for packaging that is more easily recycled, and enabling customers to increase their recycled content. For example, our VistamaxxTM performance polymers increase our customers’ ability to use recycled materials, while also improving toughness and tear resistance. Our products can be used to make full polyethylene laminated pouches that are more easily recyclable and can replace difficult-to-recycle conventional multilayer packaging in non-food applications such as detergents and dishwasher pods, while retaining packaging performance benefits. And our performance polyethylene resins enable our customers to meet their performance needs with thinner, lighter-weight products, which require less resource. Assessing advanced recycling technology Plastics have value throughout their life cycle, including at the end of their life. Both traditional and advanced recycling processes are needed to help society maximize the value captured from plastic waste, but there are some limitations with traditional recycling as currently configured. Traditional mechanical recycling – grinding discarded plastic and melting it together with new plastic – is an efficient approach where waste is well sorted and for waste products that are made predominantly from one type of plastic. However, each time plastic is recycled via traditional processes, it loses some of its performance benefits. In addition, it is difficult to remove contaminants from traditional recycling processes, an important consideration for food and health care applications. Our employees monitor the production, loading and storage of plastic pellets at all our resin-handling facilities to minimize plastic pellet loss.
13 | Sustainability Report Highlights Environmental benefits of plastics relative to alternative materials While ExxonMobil agrees there is no place for plastic waste in the environment, Advanced recycling involves breaking down plastic waste into its molecular building blocks. This approach the environmental benefits of plastic are clear. Calls to replace plastic packaging effectively transforms plastic waste into the raw materials that are used in the process of making with alternative materials can often have unintended negative environmental impacts. For example: virgin-quality plastic and other valuable products. ExxonMobil believes advanced recycling is a necessary complement to traditional recycling for several reasons: According to a 2011 U.K. Environment Agency study, a cotton tote bag • Advanced recycling enables society to capture more value from a broader range of products and would need to be used 131 times to have a lower full life cycle emissions provides more flexibility in sorting and separation processes. impact than using a typical plastic grocery bag once. • There are no evident technical limitations regarding how many times a plastic product can be put A 2016 TruCost study found that substituting plastic in consumer products through these processes. packaging with alternatives that perform the same function would have nearly • Advanced recycling helps remove contaminants from used plastic. four times the negative impact on the environment on a full life cycle basis. • Advanced recycling provides opportunities for lower overall greenhouse gas emissions over the full life cycle of the plastic. A 2018 study by the Denmark Ministry of Environment and Food concluded a paper bag would need to be reused 43 times to have a lower impact on ozone ExxonMobil is working on technology to help enable and accelerate large-scale advanced recycling depletion and air and water pollution than the average plastic bag. solutions that could address certain limitations of traditional recycling and do so in an economically A 2018 Franklin Associates study in the United States found the feasible way. Leveraging our expertise in research and development and molecule management, we manufacturing process for plastics packaging used almost 50 percent less are developing options for integrating advanced recycling solutions at our petrochemical facilities. We energy and 80 percent less water compared to the manufacturing process expect this will lead to more mixed and soiled plastic waste being recovered and used to make high- for alternate materials. value raw materials safely, reliably and economically, at scale. We are doing this without diminishing our commitment to developing products that are easier to recycle via traditional recycling methods. Supporting improvements in plastic waste recovery As economies grow, society’s commitment to waste management systems must expand to enable the appropriate collection, sorting and processing of waste to minimize environmental impact. These infrastructure enhancements are needed for all types of municipal solid waste, not just plastic. However, increasing plastic recycling rates and converting plastic waste into a broad range of valuable products could unlock value and help offset some of the costs of improvements to waste collection and sorting infrastructure. Lorem ipsum dolar sit etium apparatus dolar sit etium montrimonii, catherdas sinosous.
14 | Sustainability Report Highlights ExxonMobil was the first energy company to join The Recycling Pellets are typically loaded into a bag, truck or railcar via a 2019 PERFORMANCE HIGHLIGHTS Partnership, a nonprofit organization dedicated to increasing mechanical process. Plant personnel monitor our facilities via recycling in the United States. We have committed $1.5 million routine daily rounds, and if a loss of containment is discovered, to this organization to help develop sustainable solutions and loose pellets are promptly recovered. Pellet recovery support activities such as curbside recycling programs. The equipment, such as skimmers and sieves, is also in place to Alliance to End partnership has supported more than 1,000 communities, recover pellets captured in our water drainage systems. Plastic Waste including 50 million homes, and has diverted 233 million pounds of recyclable waste from landfills to recycling centers. ExxonMobil actively participates in industry initiatives related to Founding member pellet loss. Since 2008, we have been a member of Operation ExxonMobil is a founding member of the In 2019, ExxonMobil helped launch the Alliance to End Plastic Clean Sweep, a voluntary international industry program for Alliance to End Plastic Waste, an organization Waste as a founding member. We worked with companies from plastic manufacturing facilities that encourages the use of best committed to advancing potential scalable multiple sectors to form the world’s most significant organization practices for pellet management and containment to reduce solutions to reduce plastic waste in of business and nonprofit partners to help address plastic waste. pellet loss. We have incorporated Operation Clean Sweep the environment. The membership has since grown to nearly 50 organizations that principles into our global Operations Integrity Management have collectively committed more than $1 billion to develop safe, System, which is applied at our plastics production and scalable and economically viable solutions. The Alliance aims to handling facilities around the world and requires a regular No reportable plastic accelerate additional investment by proving the effectiveness of assessment of our procedures to ensure they are effective, pellet losses to the these solutions, particularly in countries with the highest levels and improvement measures are implemented if needed. We environment of plastic waste in the environment. For more information about have also incorporated Operation Clean Sweep principles Although laws and regulations related to the Alliance’s projects, please visit endplasticwaste.org. into our Supplier Relationship Management process to inform the reporting of plastic pellet loss to the third-party logistics suppliers about our commitment, and we environment vary by jurisdiction, we put in encourage participation in similar programs or activities to place a global standard across all of our Minimizing plastic pellet loss from our operations prevent pellet loss. resin-handling facilities. In both 2018 and 2019, ExxonMobil had no reportable plastic In 2019, we joined Operation Clean Sweep-Blue, which pellet losses. Although laws and regulations related to the is a voluntary extension of Operation Clean Sweep in the reporting of plastic pellet loss to the environment vary by United States that includes enhanced commitments for the jurisdiction, we put in place a global standard across all of our awareness, prevention, management and reporting of plastic resin-handling facilities. ExxonMobil’s objective is to have zero pellet releases to help further reduce plastic pellet loss at pellet loss to the environment. industry facilities.
15 | Sustainability Report Highlights SOCIAL Around the world, ExxonMobil aims to be a preferred business partner, neighbor, employer and supplier. We maintain a corporate-wide commitment to safeguarding the health and security of our employees and the public, responsibly managing our social impacts, and upholding respect for human rights in our operations. ExxonMobil employees worked with strategic partners and contractors from around the world to build the Floating Production Storage and Offloading platform (FPSO) Liza Destiny in Singapore and deliver it offshore Guyana.
16 | Sustainability Report Highlights SOCIAL Safety ExxonMobil remains focused on achieving a work environment where Nobody Gets Hurt. Safety is a core value at ExxonMobil. We operate in a manner that helps protect our employees, contractors, customers and the communities where we operate. Our approach to safety includes identifying possible risks, implementing measures to prevent potential incidents, and educating employees and contractors about unsafe behaviors. For 27 years, our Operations Integrity Management System (OIMS) has established a set of worldwide expectations for addressing risks inherent to our business, including safety risks. Our work procedures embed OIMS into our everyday work processes at all levels of the organization. Personnel safety From a Lost-Time Incident Rate (LTIR) perspective, our workforce remains significantly safer than the industry as a whole. XTO Energy, our unconventional exploration and production unit, continued its year-on-year improvement trend and achieved its best-ever LTIR results in 2019. Our Fuels & Lubricants and Chemical businesses continue to outperform their respective industry benchmarks. In 2019, we enhanced our focus on defining consistent Life Saving Actions, or safeguards, for higher-consequence work associated with lifting and rigging, and with work around mobile equipment. These actions are applicable to day-to-day activities where ExxonMobil and industry experience has shown tragic personnel safety outcomes still occur. We continually monitor operations to help keep our employees safe and secure.
17 | Sustainability Report Highlights We work with our employees and contractors to understand Life Saving Actions for these higher-consequence activities and how to verify critical, effective safeguards are in place before the work begins and during execution. With our focus on eliminating the most serious incidents, we extended a steady multiyear improvement trend in 2019, while also achieving a historically low rate of high-consequence injuries. Process safety ExxonMobil has an unwavering commitment to helping protect our people, the community and the environment by seeking to manage the risks inherent to our operations. Our Operations Integrity Management System (OIMS) serves as the foundation for managing process safety risks and establishes clear process safety expectations, which are distributed throughout our management systems. The safeguards needed to protect against process safety risks are built into OIMS and integral to the way our facilities are designed, operated and maintained. We verify and rigorously maintain these safeguards to prevent or mitigate the consequences of a process safety event. We collaborate with our peers and industry associations to share lessons learned. For example, we are actively engaged in the Advancing Process Safety initiative, a collaborative effort between the American Fuel and Petrochemical Manufacturers and the American Petroleum Institute. The initiative aims to improve process safety performance across industry by sharing experiences and knowledge about process safety events, hazard identification metrics and industry-proven practices. ExxonMobil employees regularly attend specialized trainings, often with local firefighters and other first responders, to help ensure preparedness in case of an emergency.
18 | Sustainability Report Highlights Emergency preparedness Lost-time incident rate* Lost-time incident rate* ExxonMobil is prepared to respond to a wide array of emergency events, including natural disasters, Incidents per 200,000 work hours pandemics and operational incidents. Regardless of the size, severity or cause of an event, each 0.20 ExxonMobil facility and business unit has access to trained responders and resources. Cross-functional teams develop and practice emergency response tactics through incident management teams and emergency support groups around the world. 0.15 Lost-time incident rate* Incidents per 200,000 work hours This preparation enables ExxonMobil’s global operations to provide a robust response in emergency 0.20 situations to help protect the safety of people and the environment. 0.10 American Petroleum 0.15 In 2019, we carried out a Regional Response Team exercise in Egypt to demonstrate the readiness to plan Institute U.S. petroleum industry workforce and execute real-time field deployments effectively, based on the response actions included in the Egyptian 0.10 American Petroleum benchmark National Oil Spill Contingency Plan. With more than 150 participants representing 27 countries, the five- 0.05 Institute U.S. petroleum industry workforce day exercise strengthened alignment on response objectives between key stakeholders and the Regional benchmark ExxonMobil workforce 0.05 Response Team. ExxonMobil workforce 0 0 201020102011 2011 2012 2012 20132013 2014 2014 2015 20162015 2016 2017 2018 2019 2017 2018 2019 ExxonMobil’s 2019 total workforce (employees and contractors) lost-time incident rate per 200,000 work hours was 0.033, similar to our performance in 2018. In 2019, our 2019 PERFORMANCE HIGHLIGHTS ExxonMobil’s 2019 employee total total lost-time workforce incident (employees rate per 200,000 work hours wasand 0.031contractors) and our contractor lost-time incident rate per 200,000 work hours was 0.034. When compared lost-time incident rate per 200,000 workPetroleum with the American hours was Institute0.033, similar U.S. petroleum to workforce industry our performance benchmark, in 2018. In 2019, our employee total ExxonMobil lost-time continues incident to be among rateleaders the industry per in200,000 work hours was 0.031 and our safety performance. contractor *Incidentslost-time include injuriesincident and illnesses.rate perour200,000 We base work safety data on hours information was 0.034. When compared available ~80% improvement in 27 years of OIMS at the time of publication. Workforce includes employees and contractors. Depending on with the American Petroleum Institute U.S. petroleum industry workforce benchmark, the reporting year, around 2 to 12 percent of the lost-time incidents are illness-related. ExxonMobil continues to be among the industry leaders in safety performance. lost-time incident rate For 27 years, our Operations Integrity since 2000 Management System has established *Incidents include injuries and illnesses. We base our safety data on information available a set of worldwide expectations at the time of publication. Workforce includes employees and contractors. Depending on Since 2000, we have achieved a nearly for addressing risks inherent to our the reporting year, around 2 to 12 percent of the lost-time incidents are illness-related. 80 percent improvement in our workforce business, including safety risks. lost-time incident rate. DATA AS OF 6/01/2020 Year ExxonMobil workforce American Petroleum Institute U.S. petroleum industry workforce benchmark "2010" 0.038 0.128 "2011" 0.077 0.121 "2012" 0.046 0.108 "2013" 0.044 0.118 "2014” 0.031 0.107 "2015" 0.035 0.089 "2016" 0.029 0.084 "2017" 0.029 0.029 DATA AS OF 6/01/2020 "2018" "2019" 0.033 0.033 0.033 0.033
19 | Sustainability Report Highlights SOCIAL Healthy and engaged workforce Worksite health and wellness The success of ExxonMobil’s operations depends on a healthy and competent workforce. Our health policy communicates corporate expectations for identifying and managing health risks related to our operations. In each country, we develop workplace health programs that consider local health care systems and health needs. Improvements in worker health can increase quality of life and employee productivity. ExxonMobil supports voluntary health programs that promote employee well-being while reducing health-plan costs. Through our Culture of Health program, we provide employees with health education, disease management assistance, resilience training and fitness programs. We have implemented the Culture of Health program in 30 countries, and we continue to look for new opportunities to expand the program’s reach. We have recently added programs in Canada, Chad, Colombia, Equatorial Guinea, France, Germany, Guam and New Caledonia. When the COVID-19 pandemic emerged in early 2020, our emergency preparedness and response procedures were triggered at the country, regional and facility levels, building on lessons learned from SARS, Pandemic Flu, MERS and Ebola. Our preventive and mitigation safeguards, combined with coordinated internal communications, helped protect the health and safety of our workers and their dependents. Where appropriate, we implemented remote-work policies while our facilities were deep cleaned and reconfigured to enable proper social distancing. Our measures were continually refined as more information about the virus was identified, in consultation with internal and external health experts. In collaboration with the Alberta Health Services, we conducted on-site COVID-19 testing at our Kearl operations in Canada.
20 | Sustainability Report Highlights Diversity and inclusion 2019 PERFORMANCE HIGHLIGHTS Diversity of thought, ideas, perspectives, skill, knowledge and culture makes ExxonMobil more innovative, resilient and better able to navigate the complex and changing global energy Culture of Health program Representation of minority business. Creating an inclusive workplace enables our global employees to bring their unique perspectives to help achieve our in 30 countries executives in the U.S. business objectives. We have implemented the Culture of Health program increased 80% since 2009 in 30 countries, and we continue to look for new In 2019, 18 percent of ExxonMobil’s U.S. executives opportunities to expand the program’s reach. Our global workforce reflects the local communities and cultures were minorities vs. 10 percent in 2009. where we operate. Our objectives are to seek and hire talented, dedicated employees and give them opportunities to learn, grow and succeed. The result is a diverse and multifaceted employee Representation of women More than 30 base representing different perspectives and ideas. executives increased 69% years of service since 2009 Career employees at ExxonMobil average We consider and monitor diversity through all stages of more than 30 years of service. In 2019, 22 percent of ExxonMobil’s executives employment, including recruitment, training and development were women vs. 13 percent in 2009. of our employees. For example, in 2019, 36 percent of our campus engineering hires in the United States were women, and 40 percent were minorities. Both rates are higher than the average annual percentage of female engineering graduates and minority engineering graduates, respectively. Over the past decade, 39 percent of our global management, professional and technical hires were female, and 31 percent of our U.S. management, professional and technical hires were minorities. In 2019, 22 percent of ExxonMobil’s global executive employee population were women, and 18 percent of our U.S. executives were minorities. ExxonMobil actively fosters a productive work environment where individual and cultural differences are respected and valued, and where all employees are encouraged to contribute fully to achieving business results.
21 | Sustainability Report Highlights Our Global Diversity Framework and Standards of Business Conduct govern ExxonMobil employment practices, including policies for recruitment, hiring, promotions and salary administration. The standards support our commitment to provide equal employment opportunities, prohibit discrimination in the workplace and align with applicable laws in the countries where we operate. We use a series of training programs and tools to help our employees understand cultural sensitivities across a diverse workforce. We do not tolerate harassment in any form, and violators of this policy are subject to disciplinary action, up to and including termination. Employee recruitment and retention ExxonMobil prioritizes the development of employees. We begin with recruiting exceptional talent and continue with individually planned assignments and experiences that lead to broad skill development and a deep understanding of our businesses. This career-oriented, tailored approach results in an average length of service of more than 30 years for career employees. It also facilitates development of the next generation of leaders from within the company. ExxonMobil invests in people for a long-term career. Through a combination of work assignments, on-the-job experiences, and focused training and education, employees acquire the necessary skills and competencies to take on increasing levels of responsibility and job complexity. We have invested an average of $93 million per year on training since 2015. In 2019, more than 60,000 personnel completed voluntary training courses. We recruit exceptional people and give them personalized career plans and unique experiences, which leads to an average length of service of more than 30 years for career employees.
22 | Sustainability Report Highlights SOCIAL Human rights ExxonMobil is committed to respecting human rights as a fundamental principle in our operations, reinforced through training and integrated into our policies and practices. Our business presence should have a positive influence on the people in the communities where we operate. Our practices reflect the spirit and intent of the United Nations’ Universal Declaration of Human Rights and are guided by elements of the United Nations’ Guiding Principles on Business and Human Rights. ExxonMobil conducts human rights training to help build an understanding of human rights and an awareness of potential human rights risks. More than 1,800 employees in applicable positions and locations across 49 countries have completed the training since 2015. We use a risk screening tool to assess potential human rights impacts associated with our activities, and we integrate it with our Environmental, Socioeconomic and Health Impact Assessment and Management process so risks are appropriately assessed, mitigated and tracked. Our processes for stakeholder engagement and grievance management support our integrated approach to human rights due diligence. Through our grievance management process, for example, we help provide effective, accessible and culturally appropriate channels for individuals or communities to raise concerns, whether through community engagements, electronic or in-person submission, or third parties such as civil society organizations or nongovernmental organizations. We then work to manage, respond to and, ideally, resolve issues in a timely manner, as appropriate. Our efforts to manage human rights issues reflect evolving international initiatives. We are actively involved with IPIECA, the global oil and gas industry association for advancing environmental and social issues, to monitor business and human rights trends. Our engagement also includes developing and sharing practices on human rights due diligence and human rights supply chain management from the oil and natural gas industry and other extractive industries. In 2019, ExxonMobil contributed to the new edition of the Sustainability Reporting Guidance for the Oil and Gas Industry, jointly developed by IPIECA, the American Petroleum Institute, and the International Association of Oil and Gas Producers. We were actively engaged in the development of the expanded social performance section, which embeds human rights considerations throughout the sustainability reporting guidance. Our business presence should have a positive influence on the people in the communities where we operate. Through our livelihood support programs, we are helping to build the capacity of communities and enhance the livelihoods of Papua New Guineans in our project areas.
23 | Sustainability Report Highlights Security and human rights ExxonMobil’s Statement of Principles on Security and Human Rights establishes the expectation that all business units provide security for personnel, facilities and operations in a manner that respects human rights. The framework guides our majority-owned operating affiliates on how to manage interactions with both host government-assigned security and private security providers. It also provides guidance for documenting allegations of human rights abuse by public or private security personnel and any incidents of inappropriate physical force used by security providers in the protection of company assets. Depending on the nature of an incident, our procedures include reporting to host governments. Where appropriate, our standard security services contracts include provisions requiring that personnel receive training to understand the expectations and their responsibilities with respect to the following: • ExxonMobil’s Statement of Principles on Security and Human Rights • Local laws and regulations • Provisions of the Universal Declaration on Human Rights • International Labour Organization’s 1998 Declaration on Fundamental Principles and Rights at Work • U.N. Code of Conduct for Law Enforcement Officials • U.N. Principles on the Use of Force and Firearms by Law Enforcement Officials These standard security services contract provisions require contractors to monitor, report and investigate allegations of credible human rights abuse. Contractors are required to immediately remove any of their personnel credibly alleged to have committed a human rights abuse. Since 2016, we have helped train nearly 29,000 security providers on the Voluntary Principles on Security and Human Rights, a multi-stakeholder initiative that focuses on ways to maintain the safety and security of operations while respecting human rights. Using the Voluntary Principles to train on-the-ground security personnel can help reduce human rights risks. Since 2016, we have helped train nearly 29,000 security providers on the Voluntary Principles on Security and Human Rights.
24 | Sustainability Report Highlights In some instances, host governments require ExxonMobil to engage their security forces. In these cases, we 2019 PERFORMANCE HIGHLIGHTS have signed agreements with governments that include expectations for respecting human rights consistent with the Voluntary Principles, as well as compliance with relevant local, U.N. and other security-related frameworks. We have agreements in place in Chad, Colombia, Indonesia, Mozambique and Papua New Guinea. ~29K trained on Voluntary We developed targeted training modules in 2019 for ExxonMobil personnel in global affiliates where host Principles on Security and government security forces are engaged. The training focuses on our expectations for host government security deployment, including identifying the risks of security-related human rights impacts in communities. Human Rights since 2016 We have helped train nearly 29,000 security providers on the Human rights in the supply chain Voluntary Principles on Security and Human Rights to reduce human rights risks associated with security activities in communities. ExxonMobil is committed to respecting human rights, and we expect the same of our suppliers. Our Supplier Expectations include our expectations of suppliers, vendors and contractors with regards to human rights. These expectations include references to key international human rights frameworks, such as the United Nations’ Guiding Principles on Business and Human Rights and the International Labour Organization’s Human rights training in 1998 Declaration on Fundamental Principles and Rights at Work. We reiterate our expectations on human 49 countries since 2015 rights to our suppliers through an annual letter to suppliers. Since 2015, more than 1,800 employees in applicable positions and locations across 49 countries have completed our human We also comply with all relevant laws and regulations regarding human rights. For example, in compliance with rights training module. the U.K. Modern Slavery Act 2015, we prepare an annual slavery and human trafficking statement. Also, our annual conflict minerals filing to the U.S. Securities and Exchange Commission provides disclosures regarding supply sources of gold, tin, tungsten and tantalum. Utilized a risk screening tool Additionally, since 2016, more than 300 procurement employees have received human rights awareness We use a risk screening tool prior to conducting broader training, tailored to procurement professionals, to help improve their understanding of human rights in the Environmental, Socioeconomic and Health Impact Assessments supply chain. to assess potential human rights impacts. For information on supply chain management, including supplier diversity, please visit our website.
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