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Supply chain management

Because our global reach expands well beyond our fence line, we know the success of our operations and reputation are influenced by those who support our operations beyond the workplace sites.

ExxonMobil works with more than 165,000 suppliers of goods and services, and we develop relationships with suppliers that uphold our commitment to safety, the environment and human rights. We support supplier efforts for continuous improvement in these areas.

When surveying the market for potential suppliers, ExxonMobil seeks suppliers that can meet our safety and operational requirements. Our procurement staff is trained to conduct supplier prequalification assessments, which include anti-corruption due diligence when appropriate. Additionally, we seek out local suppliers or suppliers from historically underrepresented groups including, but not limited to, women, minorities and indigenous peoples.

ExxonMobil is committed to respecting human rights, and we expect the same of our contractors and suppliers. In 2014, we conducted a pilot supplier human rights assessment program. In 2015, we tailored our efforts and engaged a selected group of key suppliers across various commodities. This process allowed us to gauge the level of human rights awareness among suppliers, as well as to gain a better understanding of how human rights practices, training and grievance mechanisms are used.

To improve social performance along the supply chain, in 2016 we will continue to use learnings from our supplier awareness assessments to provide key inputs to the tools we are developing. For example, we recently developed and published ExxonMobil Supplier Expectations, a set of guidelines that outlines our expectations of contractors and suppliers inclusive of 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 ILO Declaration on Fundamental Principles and Rights at Work. We believe that by increasing our suppliers’ awareness of human rights, we can facilitate improvement in their own supply chains, creating a wider scope of positive impact and influence. For additional information on ExxonMobil’s positions and activities on human rights, see our respecting human rights page.

In addition to respecting human rights, we require that all of our suppliers maintain our environmental performance standards. For example, ExxonMobil Nigeria conducts site visits at its local contractors’ sites and performs environmental inspections as a way to monitor supplier environmental performance. If a concern is identified, ExxonMobil will meet with that contractor’s leadership to provide feedback and assist in correcting the issue. In addition, expectations for our suppliers about environmental performance are included in the Supplier Expectations

Promoting supplier diversity

ExxonMobil values its diverse workforce and works to promote a diverse supply chain. In the United States, we have cultivated diversity across our supply chain through our supplier diversity program for more than 40 years. For the past 15 years, we have tracked our annual spending with minority- and women-owned business enterprises (MWBEs). In 2008, we began to consider the full reach of our supply chain, and not just our direct spending, by making efforts to encourage and track the progress of our primary suppliers in the development and use of MWBEs. We refer to this as our Tier 2 program.

As an example of our Tier 2 efforts, in 2015 the ExxonMobil Baytown facility sponsored a “meet and greet” session that attracted more than 75 attendees in an effort to provide diverse suppliers with an opportunity to engage with primary suppliers. As a result of this event, more than 25 diverse suppliers secured business contracts with a variety of primary suppliers. We believe this approach helps ensure the sustainability of our supplier diversity program by encouraging our primary suppliers to join in our efforts.

As part of our supplier diversity efforts, we take steps to encourage our suppliers to develop their own supplier diversity programs. We have started including discussions of best practices for supplier diversity in regular supplier relationship management meetings with our key suppliers. As a result of this engagement, several suppliers are now tracking and reporting their spending with diverse suppliers as part of their supplier stewardship.

We work closely with the National Minority Supplier Development Council (NMSDC) and the Women’s Business Enterprise National Council (WBENC) to help identify and develop relationships with certified diverse suppliers in the United States.

ExxonMobil is consistently recognized as a leader in supplier diversity efforts. WBENC named ExxonMobil among America’s Top Corporations for Women’s Business Enterprises in 2015. This national award recognizes corporations with world-class programs and leadership in supplier diversity. In addition, at the NMSDC National Conference, ExxonMobil was awarded the Gazelle Company Award for a substantial increase in spending with minority-owned suppliers.

In 2010, we set a goal to spend $1 billion annually on MWBEs in the United States by 2012. We met this goal in 2011 and have maintained a level of spend with minority- and women-owned suppliers greater than $1 billion per year for the past four years.

In 2015, we met our target of $1 billion in spending with diverse suppliers in the United States, with the following classifications: minority-owned businesses; women-owned businesses; small businesses; lesbian-, gay-, bisexual- and transgender-owned businesses; veteran-owned businesses; service-disabled veteran-owned businesses; and businesses owned by people with disabilities. Suppliers from these groups have contributed to our total diverse spending in order to ensure a more inclusive supply chain. To complement this effort, our supplier diversity database allows suppliers from traditionally underrepresented groups in the United States to register an interest in being an ExxonMobil supplier.

Chart — Since 2011, we have consistently spent over $1 billion a year on minority- and women-owned business enterprises in the United States. In 2015, we met our target by spending $1,064 billion on diverse suppliers in the United States with the set of diverse classifications listed below. * Includes direct ExxonMobil spending and that of our suppliers (Tier 2 spending). Total spending includes suppliers classified as minority-owned businesses; women-owned businesses; small businesses; lesbian-, gay-, bisexual- and transgender-owned businesses; veteran-owned businesses; service-disabled veteran-owned businesses; and businesses owned by people with disabilities.

ExxonMobil is committed to respecting human rights, and we expect the same of our contractors and suppliers. Our supplier diversity program is steadily expanding into the international arena. In total, we spent $277 million with women-, indigenous- and other minority-owned businesses in select areas outside the United States in 2015. We continue to partner with WEConnect International to increase the participation of women-owned businesses in our supply chain around the world. In addition to providing financial support, we have participated in WEConnect International advisory councils in Brazil, Canada, Europe, India, Mexico, Nigeria, Peru and South Africa.

In May 2015, ExxonMobil participated in the first WEConnect International Exhibition and Matchmaker event to help provide networking opportunities for women business owners drawn from the 36 states in Nigeria. At this event, ExxonMobil Upstream companies in Nigeria received two awards recognizing our support of WEConnect supplier diversity programs. One award was for contributing to the growth of WEConnect and recognized the success of a “meet the buyer” event that was sponsored by ExxonMobil and attended by representatives from more than 300 women-owned businesses in Nigeria. At this event, attendees received training on how to conduct business with multinational programs and on ExxonMobil Foundation programs. The second award was for distinguished corporate sponsorship of WEConnect and our contributions toward inclusive economic growth in Nigeria. The event contributed to an increase in the number of registered suppliers and business contracts awarded in Nigeria. In 2015, ExxonMobil spending with women-owned businesses in Nigeria was $16.8 million, an increase of 6.3 percent from 2014.

Photo — ExxonMobil supports WEConnect supplier diversity programs in Nigeria.

Up Close: Meet the member event in Mexico City

At ExxonMobil, we strive to assist women business owners in finding opportunities to connect with our various business lines. Since 2011, the ExxonMobil Foundation has supported WEConnect International, an organization that empowers women business owners to access global supply chains. In November 2015, ExxonMobil Mexico hosted a “meet the member” event for women suppliers that are part of WEConnect’s Mexico chapter. This one-day workshop afforded women business owners the opportunity to network with ExxonMobil representatives from our various businesses and service lines. The event included interactive workshops and one-on-one meetings between the women and ExxonMobil representatives as well as an overview of ExxonMobil’s supplier diversity strategy and goals.

In total, 60 women business owners and ExxonMobil personnel attended the event. To date, the meet the member event resulted in three new business opportunities for women-owned businesses in Mexico. These opportunities included catering services for the ExxonMobil venture office, design and event planning services for public and government affairs, and a supplier of hand sanitizer for medicine and occupational health. We expect new opportunities to emerge as we continue our efforts to develop women-owned suppliers in Mexico.

Photo — Women in Mexico City participate in a meet the member event.