Local economic growth and development
ExxonMobil’s local content and supply chain management strategies are designed to deliver lasting and shared value to host countries and local communities — as well as our business — by employing systematic processes and global best practices that support local economic growth and development.
We work to contribute to the economic and social development of the countries in which we operate. We believe local content — the added economic and social value brought to a host nation through the activities of the oil and gas industry — provides shared value to ExxonMobil and to local communities.
Our local content approach focuses on three key areas: employing and training a local workforce, supporting local suppliers and improving livelihoods of community members through local community investments. The goal of this multi-tiered approach is to provide sustainable economic benefits and ensure local participation is embedded into our daily processes.
To integrate local content into overall project planning and execution, we develop a plan specific to each country or area, taking into account social and economic conditions, the nature of the project and the community’s needs. Part of this effort includes working to align our goals with those of our partners and host country governments. We also actively participate in external organizations and initiatives that improve local content around the world. These organizations include IPIECA, the global oil and gas industry association for environmental and social issues, and the Organization for Economic Cooperation and Development.
Performance and initiatives
Up Close: ExxonMobil receives award for corporate social responsibility
In 2016, Esso Exploration and Production Nigeria Limited (EEPNL), an ExxonMobil affiliate in Nigeria, was awarded the Best Company in Corporate Social Responsibility in West Africa and recognized as one of the Most Socially Responsible Companies by Social Enterprise Report and Awards (SERAs). SERAs is an annual project that raises awareness about the roles organizations play in the social development of Nigeria and Africa.
These awards recognize several local community investment projects in Nigeria, including a back-to-school program that has provided school supplies to more than 32,500 students across the country. Additionally, our investments supported the building of science libraries to promote the development of future STEM professionals at 22 primary schools; e-learning centers at 12 schools to teach children computer skills; 32 solar-powered water pumps to provide access to clean, potable water; and general capacity-building workshops for local entrepreneurs. Overall, we have invested more than $1.3 million into the local community through these projects.
Local hiring and training
Hiring and training a local workforce in our areas of operation is a long-standing priority for ExxonMobil. We provide locally hired individuals with opportunities to develop technical and leadership skills that will benefit them throughout their careers, both with ExxonMobil and with future employers. By doing so, we aim to enhance the long-term capability of local workforces in areas where we operate. Our training programs include the provision of information on ethical business conduct, health and safety, management skills and fundamentals of the oil and gas industry, as well as relevant technical and vocational skills.
We support education and training initiatives aimed at increasing the pool of individuals from which we can recruit. To help develop the skills of locally hired individuals, we place experienced ExxonMobil expatriates — individuals working in a country other than their country of permanent residence — in countries where they can share their expertise and mentor local workers for operational and leadership roles. Additionally, a large number of local workers are placed in developmental assignments at ExxonMobil facilities around the world as a way to broaden their experience and accelerate their learning with the goal that when they return home, they will use and share this knowledge in their home countries’ operations.
Furthermore, we operate several business support centers that offer services to our global operations. We have local employees working in centers around the world, including in Argentina, Czech Republic, Hungary and Thailand. These centers support our operations with a broad range of services, including financial, information technology and customer services, and provide jobs and business opportunities for the communities in which they are located.
Performance and initiatives
Our ability to hire locally depends on the availability of appropriately qualified individuals. We actively work to overcome challenges related to developing and retaining a local workforce, identifying and attracting skilled labor, and matching workforce skills with business requirements. For example, as economic activity in a particular area increases, the demand for local skilled workers also increases, which can result in a shortage of available workers. As illustrated below, in 2016, we continued to make progress in hiring and training host country nationals.
Local supplier development
We understand the importance of building and maintaining a qualified and globally competitive supply chain in host countries. ExxonMobil works with a range of stakeholders, including host country governments, nongovernmental organizations (NGOs) and local communities to support the development of local vendors.
To be a supplier for ExxonMobil, a local vendor must agree to meet our robust safety, technical, environmental and human rights expectations and requirements. When appropriate, ExxonMobil works with entrepreneurs and local businesses to help them understand our requirements and become competitive vendors capable of contributing to our project and the sustainable economic progress of their local community.
Our long-term goal is to develop globally competitive suppliers. When a supplier is unsuccessful in competing for work with us, we provide them with advice and guidance on how to become better positioned for future opportunities with ExxonMobil or other companies.
Performance and initiatives
Up Close: Local supplier development in Indonesia
ExxonMobil is committed to providing local vendors with tools and training opportunities to compete in a global supply chain. For example, in 2016, ExxonMobil conducted three capacity-building training programs for local vendors in Bojonegoro Regency in East Java, Indonesia. We shared detailed information about invoice procedures and the electronic bidding process to assist local contractors by clarifying ExxonMobil requirements and procedures. A total of 185 local contractors attended the training programs. As a result, local vendor capacity to meet internal bidding requirements has improved. In 2016, we provided contracts valued at approximately $6 million to local vendors in Indonesia.
Local community investments
Our local community investments are designed to support social and economic development in the host countries where we operate. As we invest in communities, we pursue programs that are aligned with community and business priorities.
In addition to supporting local supplier development, we provide local investments tailored to address community-specific needs. For additional information, see the strategic community investments section of our website.
Performance and initiatives
In 2016, ExxonMobil established a microcredit union that helps entrepreneurs in Bojonegoro Regency in East Java, Indonesia, access capital to expand their existing businesses. The microcredit union, which has more than 400 members, also offers management assistance and training to members. As part of this effort to invest in the community, ExxonMobil is also specifically supporting women entrepreneurs because of the unique challenges to economic development they face. ExxonMobil supports a microfinance program in Indonesia that provides technologies and training on key topics that accelerate women’s economic advancement. Women in the program were provided with sustainable lighting and cooking technologies to assist in their daily lives, as well as the opportunity to become resellers of the technology in their communities. In 2016, ExxonMobil held several group training sessions for more than 500 women, covering topics such as microfinance, sales and marketing, and basic accounting.