Working with suppliers

Our core value of Care doesn’t stop at our door. Our suppliers of goods and services all have a role to play in how we work to Protect Tomorrow. Today. in our operations.

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Our expectations of suppliers call for the operations and business practices of our suppliers to be conducted in a manner consistent with the International Labour Organization 1998 Declaration on Fundamental Principles and Rights at Work (ILO Declaration) and the goals of the United Nations Guiding Principles on Business and Human Rights (UNGPs). They also communicate our expectation that our suppliers comply with all local laws and regulations. To remain in good standing, our suppliers are expected to meet our stringent compliance, anti-corruption, conflict of interest, safety, and other guidelines.

Our approach

We work to promote inclusive sourcing open to all.

We are committed to respecting human rights and working to reduce impacts to the environment.

We seek to work with qualified suppliers that share our commitment.

Supplier stewardship

Our procurement cost models and sourcing strategies support responsible sourcing, including identification of potential human rights impacts within procurement category families.

Potential suppliers are reviewed on their operational, technical, and financial performance. When considering a supplier, we also perform due diligence on compliance. We use third-party sources to screen potential suppliers across compliance areas including sanctions, anti-corruption, forced labor, and human trafficking.

In our bid process, we communicate our expectations that suppliers:

  • Comply with all applicable laws prohibiting the utilization of forced or compulsory labor.
  • Provide employees with working conditions, including payment of wages and benefits, that comply with all applicable laws.
  • Ensure that employees meet the legal employment age requirements in the country of employment.

Our procurement team uses standard terms and conditions that oblige suppliers to:

  • Comply with all applicable laws and regulations, including those related to employment, safety, security, health, and the environment.
  • Impose similar terms and conditions on their subcontractors. 
  • Permit audits and allow access to relevant sites, documents, and personnel.

Annually, we remind suppliers of our expectations in a year-end letter, available in dozens of languages and customized for specific regions. This letter reinforces our expectations that suppliers uphold standards similar to our Standards of Business Conduct and comply with all applicable laws and regulations. It also provides contact information for any questions or concerns.

We audit a select number of suppliers each year for contract compliance on aspects including pricing, safety, drug and alcohol policy, invoicing, and travel expenses. Contracts may be terminated if suppliers do not meet our expectations.

We define our suppliers according to the size and frequency of our purchases and review performance of our top-tier suppliers using criteria aligned with our sustainability focus areas in an effort to identify risks and opportunities and promote innovation. 

Human rights due diligence

We are committed to respecting human rights and expect our suppliers to do the same. Through our procurement processes and systems, we assess direct suppliers for potential human rights risks, with a focus on workplace rights.

Our Statement on Labor and the Workplace articulates our support of the principles of the International Labour Organization (ILO) 1998 Declaration on Fundamental Principles on Rights at Work. This includes eliminating child labor, forced labor, and workplace discrimination; the recognition of the right to freedom of association and collective bargaining; and providing a safe and healthy work environment.

The standard terms and conditions used by our global procurement organization require adherence to all applicable laws and regulations. Requests for quotes from our procurement staff typically include clauses regarding the prohibition of forced or compulsory labor and payment of wages and benefits in accordance with local laws. Participants in bidding activities must comply with these requirements.

Audits further enhance transparency and compliance with our expectations. Our standard contracts typically require suppliers and their subcontractors to allow us to access all offices, work sites, and personnel related to the contract. We select a number of suppliers annually for such audits, which include a compliance review on contract provisions.

With respect to the issue of human trafficking, we proactively communicate our expectations to suppliers through our year-end letter and manage risks through our due diligence processes. We also work to reduce the conditions that can lead to human trafficking by promoting economic growth and personal prosperity.

Our due diligence process for identifying and assessing human rights risks focuses on the supplier, the commodity, and the location. Additional due diligence is done for goods and services involving low-skilled labor in countries ranked below Tier 1 in the U.S. Department of State’s Trafficking in Persons (TIP) Report. If higher risk is identified, further due diligence is performed to address risks before we continue with the contracting process. Training on human rights risks is available to procurement professionals who conduct supplier due diligence.

Environmental performance

We aim to work with innovative suppliers to reduce environmental impacts in our supply chain. We also engage with suppliers to share our expectations and find opportunities to go even further.

Even small changes can have a big impact. When our network of lubricants blending and packaging plants in the E.U. standardized pallet sizes to a single optimized design, they unlocked efficiencies leading to $1.5 million in annual savings. The move also extended material life and cut waste by introducing the option to reuse repaired pallets, saving another $1.3 million annually.

Through collaboration with a local vendor, the monoethylene glycol team at the Gulf Coast Growth Ventures (GCGV) joint venture we operate started buying filters from a nearby supplier rather than shipping them in from overseas. By sourcing locally, the team cut costs by 50% and cut weeks from delivery lead times. The supplier also trained site personnel in cleaning techniques, extending filter life and improving reliability.

Whether through collaboration with our transportation and logistics suppliers, textile providers, or well-services suppliers – or through our focus on refinery maintenance or efficiently running our warehouses – our approach continues to tackle everyday challenges in innovative and cost-effective ways.

“Expanding our outreach to identify and contract with qualified suppliers is a proven strategy that delivers innovation and cost-effectiveness to our operations while strengthening the communities where we do business.”

Shawn Simmons
ExxonMobil Global Sustainable Procurement Manager

In practice: Supplier forums

We participate in or host forums open to all potential suppliers, including local and small suppliers, in the communities where we operate – often in collaboration with local chambers of commerce or similar organizations.

Image Joliet Refinery supplier forum hosted by ExxonMobil.
Joliet Refinery supplier forum hosted by ExxonMobil. 

These forums help businesses understand our safety and technical requirements and connect with our procurement teams to learn about our site-specific needs. By broadening awareness and engagement, the forums strengthen our pipeline of competitive, high-performing suppliers equipped to support our operations.

These forums can open doors for qualified suppliers. For example, a WBENC-certified chemical manufacturer attended our inaugural forum in 2023 near the Joliet refinery in Channahon, Illinois. They gained a deeper understanding of our expectations and were subsequently added to our potential supplier list. Their participation positioned them to be considered for future opportunities, and they now supply chemical products to the refinery.

Sourcing for competitive advantage

Our approach to sourcing brings a competitive edge through new perspectives, ideas, and practices and helps our businesses grow by driving our supplier agility and resiliency. We work to increase awareness of a broad range of suppliers to increase competition and innovation while striving to make a positive impact on communities. We actively seek to expand our potential supplier list.

We aim to build mutually beneficial relationships that contribute to the growth of our supplier base through collaboration with groups such as the Small Business Association, American Petroleum Institute (API), National Minority Supplier Development Council (NMSDC), Women’s Business Enterprise National Council (WBENC), WEConnect International, and Minority Supplier Development United Kingdom.

Our supplier sourcing activities around the world are conducted in accordance with applicable laws. All supplier selections are based solely on applicable work qualifications and requirements. In the communities where we operate, we often buy goods and services from local suppliers and build their capabilities through local programs. This helps build long-term local economic capacity, strengthens community relationships, and supports the objectives of the United Nations Sustainable Development Goals. Additionally, where applicable, we comply with government or lender mandated local content requirements. For example, these requirements may include businesses owned by Indigenous Peoples in Canada and women in countries outside of the United States.

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