Report Jan. 5, 2021
Engaging with governments
Report Jan. 5, 2021
Engaging with governments
Transparency in payments to governments
ExxonMobil recognizes the importance of disclosing relevant payments to governments to reduce corruption, improve government accountability and promote greater economic stability worldwide. We consider the most successful transparency initiatives are those that:
- Apply to all foreign, domestic and state-owned companies;
- Protect proprietary information to promote commercial competitiveness;
- Comply with international trade conventions and treaties; and
- Do not violate host government laws or contractual obligations.
ExxonMobil is an original member of the Extractive Industries Transparency Initiative (EITI), a global organization that promotes the accountable management of oil, natural gas and mineral resources. Companies and governments participating in EITI report payments and revenues, which enables EITI to reconcile any differences between the totals and publish validated total government revenues.
We actively participate at the EITI secretariat and country levels. Every year, an ExxonMobil representative serves on the EITI board as either a primary or alternate member. We work with several governments that are EITI members, as well as others considering membership.
ExxonMobil believes sound public policy should include input from a variety of stakeholders. We recognize public policy decisions made at all levels of government can have significant effects on our current and future operations. We exercise our right to support policies that promote stable investment for long-term business viability.
We engaged on several issues in 2019 to support responsible economic, energy and environmental policies around the world, including:
- Free-market policies: A level playing field within our energy markets is vital if consumers and families are to continue to have access to affordable, reliable, and safe energy for homes and businesses. Preferential treatment for certain energy sources undermines the market and raises costs for consumers, families and businesses.
- Energy infrastructure: In the United States alone, private investments in oil and natural gas infrastructure could exceed $1.3 trillion by 2035, adding 1 million U.S. jobs and increasing gross domestic product by almost $2 trillion, according to a study conducted by global consulting firm IFC, commissioned by the American Petroleum Institute. These infrastructure projects create jobs and deliver energy to market, safely and efficiently.
- Regulatory reform: We support efforts to enhance transparency in our regulatory process, minimizing cost and maximizing efficiency.
- Trade: ExxonMobil relies on free and fair trade agreements and policies, including for example strong investment protection provisions in the U.S.-Mexico-Canada Trade Agreement (USMCA). Providing a level playing field to import and export goods and services ultimately gives consumers greater choice.
- Climate: ExxonMobil believes sound policy address the dual challenge of reducing the risks of climate change at the lowest societal cost, while balancing increased demand for affordable energy and the need to address poverty, education, health and energy security. We work to encourage collaboration across governments, private companies, consumers and other stakeholders to create meaningful solutions to address climate change. For example, we engaged with the EU Commission, both directly and through trade associations, on the development and adoption of the EU methane strategy.
U.S. lobbying expenses
In 2019, ExxonMobil’s U.S. federal lobbying expenses totaled $9.75 million, as publicly reported in our filings under the Lobbying Disclosure Act. Further information on the federal issues ExxonMobil lobbied in the United States in 2019 is available at exxonmobil.com. We also recently disclosed on our website a list of trade associations to which we paid $100,000 or more and for which a portion of our payment was reported to be used for lobbying.
The board of directors has authorized ExxonMobil to make political contributions to candidate committees and other political organizations, as permitted by applicable laws in the United States and Canada. The board annually reviews ExxonMobil’s political contributions, as well as contributions from the company-sponsored Political Action Committee. Internal audits of the corporation’s public and government affairs activities routinely verify contribution amounts.
Eligible employees and shareholders may participate in the U.S. political process by contributing to a voluntary, company-sponsored, federal PAC. ExxonMobil reports PAC contributions to the U.S. Federal Election Commission every month.
2019 performance and initiatives
In 2019, we contributed more than $253,000 to state candidates and caucuses in eight U.S. states. During 2019, ExxonMobil’s PAC disbursed more than $719,000* to federal and state candidates and committees. Corporate political contributions are subject to an internal review process that requires approval from the chairman or the vice president of our Washington D.C. office.
*Totals may not reflect some candidates’ failure to deposit, or returned contributions not yet posted.
GovernanceGood corporate governance creates a business environment conducive to long-term growth. ExxonMobil employs a variety of policies and processes to uphold high ethical standards and promote transparency. Our efforts are underpinned by a board of directors that provides strategic and independent oversight of our corporation’s affairs.
EnvironmentExxonMobil’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.’
SocialAround 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.