Report April 23, 2021

Metrics and targets

ExxonMobil has established programs to drive improvements in energy efficiency and mitigate greenhouse gas emissions.

These programs are supported by key performance metrics, which are utilized to identify and prioritize opportunities to drive progress.

Report April 23, 2021

Exceeded 2020 reduction goals; progressing further greenhouse gas reductions

By the end of 2020, ExxonMobil delivered on its goal to significantly reduce methane emissions and flaring versus 2016 levels. The Company's goals included a 15 percent reduction in methane and a 25 percent reduction in flaring. Both goals were achieved through targeted improvements at facilities in the United States, Equatorial Guinea, Angola and Nigeria, eliminating approximately 6 million tonnes of CO₂ equivalent emissions (CO₂e).

New CCS deployment captured an additional 500,000 tonnes of CO₂e in Australia and Qatar in 2019. Through the Company's energy management systems, including the application of cogeneration, greater than 1 million tonnes of CO₂e were avoided from 2015 through 2020.

In 2018, ExxonMobil announced two 12-year agreements with Lincoln Clean Energy for the purchase of 500 MWs of wind and solar electricity. Sage Drew, the operator of the wind facilities, began generating power to the electricity grid in Texas (ERCOT) in December of 2019; and the solar plant is currently active. Both plants are expected to avoid approximately 800,000 tonnes of CO₂ per year by replacing 70 percent of power purchased by the Company from the ERCOT grid with carbon-free power. Additional power purchase agreements are being evaluated around the world.

Since 2000, ExxonMobil has invested over $10 billion in projects to research, develop and deploy lower-emission energy solutions. ExxonMobil also continues to expand collaborative efforts with other companies and academic institutions. See Developing and deploying scalable technology solutions for more information on these collaborations.

Greenhouse gas emissions avoided from carbon capture^*

(Net equity, CO₂-equivalent emissions million tonnes per year)

*ExxonMobil estimates

Greenhouse gas emissions avoided from cogeneration^*

(Net equity, CO₂-equivalent emissions million tonnes per year)

*ExxonMobil estimates

Up close

Taking actions to reduce methane emissions

ExxonMobil is committed to reducing methane emissions in its operations, as well as advancing technology and policy to make progress across our industry in a cost-effective manner.

Operations

ExxonMobil implemented a program across its U.S. unconventional production to reduce methane emissions from new and existing sources by:

Enhancing leak detection and repair surveys
Phasing out high-bleed pneumatic devices
Monitoring liquid unloadings to avoid unplanned releases
Improving facility designs
Furthering training programs for operations management, superintendents, foremen, facilty engineering personnel and those involved in leak inspections

In addition, the Company continues to mature and operationalize research and technology developments in these areas. For example, emerging aircraft leak detection is now part of routine monitoring campaigns. Continuous monitoring approaches are also under development.

Since initiating its voluntary methane reduction program, the Company has conducted nearly 23,000 leak surveys on more than 5.2 million components at more than 9,500 production sites. High-bleed pneumatic devices have been eliminated across U.S. unconventional production as of 2020. As a result of these actions, U.S. unconventional methane emissions have been reduced by approximately 34 percent as of 2020, compared to 2016, which is equivalent to about 63,000 tonnes.

Advocacy

ExxonMobil respects and supports society's ambition to achieve net-zero emissions by 2050, and continues to advocate for policies that promote cost-effective solutions to address the risks of climate change. In this regard, ExxonMobil submitted a letter to the U.S. Environmental Protection Agency rulemaking docket indicating support for reasonable, cost-effective regulations to manage methane emissions from new and existing sources. ExxonMobil submitted a similar statement to the European Commission as it was developing a methane strategy for the European Union. The Company also published a model framework for industry-wide methane regulations and urged stakeholders, policymakers and governments to develop comprehensive, enhanced rules to reduce emissions in all phases of production and across the full natural gas value chain.

In addition, ExxonMobil was a founding member, and remains highly involved in the Methane Guiding Principles¹ – an international multi-stakeholder initiative now comprising more than 20 companies and 15 supporting organizations that work together to address methane emissions across the full natural gas value chain. Under the Methane Guiding Principles, ExxonMobil is a primary sponsor of the IEA's Methane Tracker,² a web-based information portal that provides information on global emissions, mitigation measures, and regulatory approaches. The Company also participates in the Methane Guiding Principles' non-operated joint venture and policy-related work streams.

ExxonMobil supports strong measurement, reporting and verification standards as part of a broad suite of regulations to address oil and natural gas related methane emissions. To that end, the Company is actively engaged with organizations such as the Oil and Gas Climate Initiative, the Collaboratory for Advancing Methane Science, the Environmental Partnership, and the Methane Guiding Principles, mentioned previously, to continue to improve the accuracy and transparency of how industry approaches methane emissions measurement, reporting and verification. ExxonMobil participates in the recently formed International Association of Oil & Gas Producers/IPIECA/OGCI Task Force for Recommended Practices for Methane Emission Detection & Quantification Technologies.

ExxonMobil is also working with trade associations to encourage consensus on the need to develop policy positions and/or best practices on methane emissions inventory and management, as well as technology and innovation, most recently for example, with the American Exploration & Production Council (AXPC), the Natural Gas Supply Association (NGSA) and the Argentinean Institute for Oil and Gas (Instituto Argentino del Petróleo y del Gas, IAPG).

UNCONVENTIONAL PRODUCTION PROGRESS

~34%

methane reduction across U.S. unconventional production as of 2020

UNCONVENTIONAL PRODUCTION PROGRESS

~100%

high-beed pneumatic devices phased out across U.S. unconventional production as of 2020

Research and technology

Reducing methane emissions in oil and natural gas operations is an important way to reduce global greenhouse gas emissions. Advances in technology can help detect and identify the sources, and improve the ability to respond quickly.

ExxonMobil is working to find new and better ways to monitor and reduce methane emissions through a new collaboration, known as Project Astra, involving universities, environmental groups and other industry partners. Together, the partners are working to develop an innovative sensor network in Texas that continuously monitors methane emissions across large areas to enable quick and efficient detection and repair of leaks. This high-frequency monitoring system will enable operators to more efficiently direct resources to a specific location and could provide a more affordable, efficient solution to reduce methane emissions.

In addition, the Company is testing novel analytical systems that can be deployed in helicopters, airplanes and drones to detect fugitive emissions. The Company is also exploring the use of satellite surveillance where data can be regularly updated each time satellites orbit the earth. These technology investments complement the Company’s voluntary methane management program that includes structured leak detection and repair protocols, prioritized replacement of high-bleed pneumatic devices, and infrastructure enhancements.

<strong>In space:</strong> Emissions can be detected by satellite surveillance technology. The data can be updated each time the satellite orbits the earth.<br />
<div></div>

1/3 In space: Emissions can be detected by satellite surveillance technology. The data can be updated each time the satellite orbits the earth.

<strong>In the air</strong>: Using helicopters and airplanes, ExxonMobil is trialing four different airborne technologies fitted with methane sensors to detect and quantify emissions. Photo courtesy of Scientific Aviation.

2/3 In the air: Using helicopters and airplanes, ExxonMobil is trialing four different airborne technologies fitted with methane sensors to detect and quantify emissions. Photo courtesy of Scientific Aviation.

<strong>On the ground</strong>: ExxonMobil is also testing a ground-based leak detection system that combines research in sensing technology, plume modeling and data analytics to identify leaks for repair.

3/3 On the ground: ExxonMobil is also testing a ground-based leak detection system that combines research in sensing technology, plume modeling and data analytics to identify leaks for repair.

ExxonMobil's greenhouse gas emission reduction plans

The Company recently announced plans to further reduce greenhouse gas emissions in its operations by 2025, compared to 2016 levels, while aiming for industry-leading greenhouse gas performance across its businesses by 2030. The 2025 plans include a 15 to 20 percent reduction in greenhouse gas intensity of upstream operations. The reductions will be supported by a 40 to 50 percent reduction in methane intensity; and a 35 to 45 percent reduction in flaring intensity. The Company also plans to eliminate routine flaring by 2030 in upstream operations, as defined by the World Bank.

The 2025 emission reduction plans include actions that are expected to reduce absolute greenhouse gas emissions by an estimated 30 percent for the Company's upstream business. Similarly, absolute flaring and methane emissions are expected to decrease by 40 to 50 percent. ExxonMobil's emission reduction plans cover Scope 1 and Scope 2 emissions from assets operated by the Company.

Actions will include deploying industry-leading best practices such as increased leak detection and repair, the application of advanced technologies to improve inspections, and improved facility designs including the phase out of high-bleed pneumatic devices. See Taking actions to reduce methane emissions above for more information.

ExxonMobil’s emission reduction plans will leverage the continued application of operational efficiencies, ongoing development and deployment of lower-emission technologies, such as carbon capture, and through additional purchases of renewable electricity for its operations.

ExxonMobil is working to find new and better ways to monitor and reduce methane emissions, including in its Permian operations.

Greenhouse gas emissions performance data

ExxonMobil assesses its performance to support continual improvements throughout the organization. Since 2011, performance data include unconventional operations information. In 2014, the Company started reporting data over a 10-year period to demonstrate trends over time as part of a commitment to transparency. The reporting guidelines and indicators of IPIECA, the International Oil and Gas Producers Association and the American Petroleum Institute Oil and Gas Industry Guidance on Voluntary Sustainability Reporting (2015) informed what data are included in the performance table.

	2020*	2019	2018	2017	2016	2015	2014	2013	2012	2011
Managing the risks of climate change³
⁴Greenhouse gas emissions, absolute (net equity, CO₂-equivalent emissions), millions of tonnes	112	118	123	122	124	122	124	127	126	128
⁵Direct (excluding emissions from exported power and heat)	105	110	115	113	116	114	116	119	118	119
⁶Emissions associated with imported power	7	8	8	8	8	8	8	8	8	9
CO₂ (excluding emissions from exported power and heat)	107	112	115	115	116	114	116	119	120	124
Methane (CO₂- equivalent)	5	6	8	7	7	7	7	7	5	3
Other gases (CO₂-equivalent)	<1	<1	<1	<1	1	1	1	1	1	1
Emissions from exported power and heat	3	3	3	3	3	4	8	16	15	15
⁴Greenhouse gas emissions, normalized (net equity, CO₂-equivalent emissions), tonnes per 100 tonnes of throughput or production
Upstream	24.0	24.8	26.6	25.8	25.8	25.5	24.2	23.2	22.3	20.7
Downstream	20.4	19.1	18.6	18.6	19.4	18.9	19.2	19.7	19.6	20.0
Chemical	53.5	55.0	54.3	54.2	53.9	54.8	54.5	57.9	56.3	57.2
By-region greenhouse gas emissions (net equity, CO₂-equivalent emissions), millions of tonnes
Africa/Europe/Middle East	34	36	42	43	44	44	43	44	44	45
Americas	64	65	63	63	64	65	66	70	68	66
Asia Pacific	14	17	18	16	16	13	15	13	14	17
By-division greenhouse gas emissions (net equity, CO₂-equivalent emissions), millions of metric tons
Upstream	50	54	58	58	58	56	57	58	56	54
Downstream	40	41	42	42	45	45	47	49	51	54
Chemical	22	23	23	22	21	21	21	20	19	20
Carbon dioxide – captured for storage, millions of tonnes	7.4	6.8	7.0	6.6	6.3	6.9	6.9	5.9	4.8	5.0
Energy use (billion gigajoules)	1.5	1.5	1.5	1.4	1.5	1.5	1.4	1.4	1.5	1.5
Upstream (gigajoules per tonnes production)	2.5	2.5	2.6	2.5	2.4	2.4	2.3	2.1	2.0	2.0
Refining (gigajoules per tonnes throughput)	3.3	3.0	3.0	2.9	2.9	2.9	2.9	3.0	3.0	3.0
Chemical (gigajoules per tonnes product)	11.7	10.5	10.0	10.5	10.6	10.9	10.7	10.9	12.0	11.4
⁷Hydrocarbon flaring (worldwide activities), million standard cubic feet per day	320	430	410	410	530	560	460	390	380	430
⁸Cogeneration capacity in which ExxonMobil has interest, gigawatts	5.5	5.4	5.4	5.4	5.3	5.5	5.5	5.3	5.2	5.0

* 2020 performance data includes ongoing greenhouse gas emissions mitigation measures as well as impacts associated with COVID-19.

¹ https://methaneguidingprinciples.org

² https://www.iea.org/reports/methane-tracker-2020

³ ExxonMobil-operated emissions, reductions, and avoidance performance data are based on a combination of measured and estimated emissions data using reasonable efforts and collection methods. Calculations are based on industry standards and best practices, including guidance from the American Petroleum Institute (API) and IPIECA. There is uncertainty associated with the emissions, reductions, and avoidance performance data due to variation in the processes and operations, the availability of sufficient data, quality of those data and methodology used for measurement and estimation. Performance data may include rounding of subcategories. Changes to the performance data may be reported as part of the company’s annual publications as new or updated data and/or emission methodologies become available. Emissions, reductions, and avoidance estimates from non-ExxonMobil operated facilities are also included in the equity data and similarly may be updated as part of the company’s annual publications. ExxonMobil works with industry, including API and IPIECA, to improve emission factors and methodologies

⁴ The net equity greenhouse gas emissions metric was introduced in 2011 as a replacement for the direct equity greenhouse gas metric. Information has been restated back to 2009 according to the new metric. The net equity greenhouse gas metric includes direct and imported greenhouse gas emissions and excludes emissions from exports (including Hong Kong Power through mid-2014). ExxonMobil reports greenhouse gas emissions on a net equity basis for all business operations, reflecting its percent ownership in an asset.

⁵ The addition of direct emissions and emissions associated with exported power and heat is equivalent to World Resources Institute (WRI) Scope 1.

⁶ These emissions are equivalent to WRI Scope 2.

⁷ Flaring increased in 2019 due to start-up of growth projects in the Upstream and as a result of implementing measures to comply with new regulatory requirements in Downstream and Chemical manufacturing. The 2020 flaring reduction goal was met.

⁸ Cumulative figure.

Climate solutions

Energy and innovation

Sustainability