ExxonMobil strives to be the most responsible operator in our industry, while achieving strong financial and operating results. We are proud of our dedication to adhere to the highest ethical standards and to run safe and environmentally responsible operations.
Our Board of Directors oversees our strategy, providing strong corporate governance and guidance to management.
We Are ExxonMobil leadership culture
The strength of our culture has underpinned our success for decades. We leverage our We Are ExxonMobil culture framework to clearly articulate our core values and leadership expectations to position our company for long-term success.
In our operations around the world, there is a shared commitment to excellence in pursuit of our common goals. Our culture is enabled by a strong focus on leadership and key talent systems, including performance assessments, on-the-job experience, and formal training.
In 2022, we initiated our redesigned leadership programs which were developed in partnership with the University of Michigan and the University of North Carolina. These programs are designed to better help our supervisors and managers fully understand We are ExxonMobil, connect it with our strategic priorities, and unlock the full potential of our employees.
Ethics and integrity
Our core value of Integrity inspires our dedication to upholding the highest ethical standards and to do what’s right in all aspects of our business. Our Standards of Business Conduct set the ethical conduct expectations for all employees of Exxon Mobil Corporation. Wholly owned and majority-owned subsidiaries generally adopt policies similar to our foundation policies. As such, our policies express our expectations and define the basis for the worldwide conduct of our businesses and our majority-owned subsidiaries. Our Standards of Business Conduct are a key part of onboarding new employees, and our Standards are reinforced and communicated to employees annually. Employees are regularly required to complete business practices training, which is planned to be conducted again in 2024. We require all employees, officers, directors, and those working on our behalf to comply with all applicable laws.
We encourage employees and contractors to ask questions and voice concerns, and we insist on the reporting of any alleged violations of company policies. Our open-door communication procedures provide both formal and informal mechanisms for employee feedback, and employees can report through our anonymous mailing address and 24-hour hotline, among other options. Maintaining confidentiality to the extent possible is critical to the process, and we have protections in place to prevent retaliation against any employee for submitting concerns. A hotline steering committee reviews reports of suspected violations and provides a quarterly summary to the Board’s Audit Committee. In addition, our annual supplier communications letter provides mechanisms, including phone numbers by region, for feedback from contractors, including questions or concerns related to application of our business standards.
The Board’s Audit Committee consists of four independent non-employee directors and assists the Board in fulfilling its responsibility to oversee financial reporting, accounting, and internal control matters for the company. This includes compliance with legal and regulatory requirements and ExxonMobil policy violations. Confirmed violations can lead to disciplinary actions, up to and including termination. For more information on the Audit Committee, please see the company’s annual proxy statement on our Investor webpage.
Employees in relevant job functions receive online and in-person training on antitrust, anti-corruption, anti-boycott, trade sanctions, and export controls soon after entering their positions. Training is refreshed on an annual or biennial basis. ExxonMobil-specific and other relevant training is shared with contractors if required to perform contracted services within our facilities. In 2022, more than 23,000 employees and contractors participated in relevant training.
Regular internal audits and self-assessments help us to verify the effectiveness of our control systems and adherence to Standards of Business Conduct. On a rolling basis, our team of internal auditors annually reviews approximately one-third of ExxonMobil’s activities and processes. We thoroughly investigate suspected acts of noncompliance, and internal auditors have access to all operations, records, personnel, and properties.
Our policies, systems, expectations, and standards
The methods we employ to achieve our strategic priorities are as important as the results themselves. Each of our directors, officers, and employees is expected to observe the highest standards of integrity.
The Board of Directors has adopted and oversees the administration of our Standards of Business Conduct, which include foundation policies covering environment, health, safety, product safety, customer relations, equal employment opportunity, and harassment in the workplace. These policies and standards define the ethical conduct of ExxonMobil including our values on important matters like human rights, labor, the environment, and anti-corruption. Our directors, officers, and employees are required to review these policies annually and apply them in their work. Wholly owned and majority-owned subsidiaries of Exxon Mobil Corporation generally adopt policies similar to the Corporation's foundation policies.
Across our global operations, we apply rigorous management systems to identify, track, and report the metrics that demonstrate and guide our performance. These systems enable us to comply with regulations and provide a framework for maintaining high standards in places where applicable laws or regulations do not exist.
Our Operations Integrity Management System (OIMS) establishes expectations that apply across all our operations to address risks inherent to our business, including environmental risks. The OIMS framework contains 11 elements related to leadership, operations and maintenance, community relations, emergency response, incident investigation, information and documentation, among other topics. It also provides protocols and guidance for mitigating risk.
Each of the 11 elements within OIMS contains overarching objectives, specific expectations, and detailed processes for implementation. The OIMS framework is applied across ExxonMobil, and we monitor the performance of joint ventures and company assets operated by others against OIMS expectations.
Key policies, systems and standards include:
- Controls Integrity Management System (CIMS): The CIMS is used to assess and measure financial control risks, identify mitigation procedures, monitor compliance with standards, and report results to the appropriate operations and management groups within ExxonMobil.
- Sustainability Management: Environmental Aspects Guide: This guide establishes a consistent approach to identify, evaluate, and assess environmental and socioeconomic risks resulting from our activities so these risks can be managed.
- Environmental Business Plans: These plans address environmental requirements and expectations as part of the annual business cycle using a corporate-wide framework.
- Environmental Data Management System (EDMS): The EDMS is used to collect, collate, and consolidate site-level data at the corporate level to help manage environmental performance indicators globally. EDMS is being integrated with existing site-based emissions monitoring and measurement systems to enable collection of up-to-date, site-specific information.
- Environmental, Socioeconomic, and Health Impact Assessment: These assessments enable us to perform a formal analysis to identify key environmental, socioeconomic, and health risks and to develop management strategies through the full life cycle of an asset.
- ExxonMobil Capital Projects Management System (EMCAPS): EMCAPS provides a framework to guide project development and execution and helps account for environmental and socioeconomic concerns, as well as regulatory requirements.
- Global Energy Management System: This system identifies opportunities to improve energy efficiency and reduce greenhouse gas emissions intensity in downstream and chemical operations.
- IMPACT: IMPACT is a corporate-wide database that captures and analyzes safety and environmental data on incidents, near-misses, observations, assessment findings, lessons learned, and follow-up activities.
- National Content Guidelines, Strategies, and Best Practices: This document outlines the key elements of our national content strategy and plan, models and tools for the successful development of national content, and roles and responsibilities at the corporate, country, and project levels.
- Product Stewardship Information Management System: PSIMS applies common global processes and a global computer system to capture and communicate information on the safe handling, transport, use, and disposal of our products.
- Project Environmental Standards (PES): PES identifies applicable company environmental and socioeconomic standards for new projects.
- Technology Management System: Includes processes for technology investments that follow a gated management system from early technical innovation to final deployment.
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FORWARD-LOOKING STATEMENT WARNING
CAUTIONARY STATEMENT RELEVANT TO FORWARD LOOKING INFORMATION FOR THE PURPOSE OF THE “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND OTHER IMPORTANT LEGAL DISCLAIMERS
Images or statements of future ambitions, plans, goals, events, projects, projections, opportunities, or conditions in the publications, including plans to reduce, abate, avoid or enable avoidance of emissions or reduce emissions intensity, sensitivity analyses, expectations, estimates, the development of future technologies, business plans, and sustainability efforts are dependent on future market factors, such as customer demand, continued technological progress, policy support and timely rule-making or continuation of government incentives and funding, and represent forward-looking statements. Similarly, emission-reduction roadmaps to drive toward net zero and similar roadmaps for emerging technologies and markets, and water management roadmaps to reduce freshwater intake and/or manage disposal, are forward-looking statements. These statements are not guarantees of future corporate, market or industry performance or outcomes for society and are subject to numerous risks and uncertainties, many of which are beyond our control or are even unknown.
Actual future results, including the achievement of ambitions to reach Scope 1 and 2 net zero from operated assets by 2050, to reach Scope 1 and 2 net zero in Upstream Permian Basin unconventional operated assets by 2030, to eliminate routine flaring in-line with World Bank Zero Routine Flaring, to reach near zero methane emissions from operated assets and other methane initiatives, to meet greenhouse gas emission reduction plans or goals, divestment and start-up plans, and associated project plans; technology advances including in the timing and outcome of projects to capture and store CO2 supply lower-emission fuels, produce hydrogen, produce lithium, obtain data on detection, measurement and quantification of emissions including reporting of that data or updates to previous estimates, and use plastic waste as feedstock for advanced recycling; progress in sustainability focus areas; and reserve or resource changes could vary depending on changes in supply and demand and other market factors affecting future prices of oil, gas, petrochemical or new market products and services; future cash flows; our ability to execute operational objectives on a timely and successful basis; policy and consumer support for emission-reduction and other advanced products and technology; changes in international treaties, laws, regulations and incentives, including those greenhouse gas emissions, plastics, carbon storage and carbon costs; evolving reporting standards for these topics and evolving measurement standards for reported data; trade patterns and the development and enforcement of local, national and regional mandates; unforeseen technical or operational difficulties; the outcome of research efforts and future technology developments, including the ability to scale projects and technologies such as electrification of operations, advanced recycling, CCS, hydrogen production, or direct lithium extraction on a commercially competitive basis; availability of feedstocks for lower-emission fuels, hydrogen, or advanced recycling; changes in the relative energy mix across activities and geographies; the actions of competitors; changes in regional and global economic growth rates and consumer preferences; actions taken by governments and consumers resulting from a pandemic; changes in population growth, economic development or migration patterns; military build-ups, armed conflicts, or terrorism; and other factors discussed in this release and in Item 1A. “Risk Factors” in ExxonMobil’s Annual Report on Form 10-K for 2022 and subsequent Quarterly Reports on Forms 10-Q, as well as under the heading “Factors Affecting Future Results” on the Investors page of ExxonMobil’s website at www.exxonmobil.com. The Advancing Climate Solutions Report includes 2022 greenhouse gas emissions performance data and Scope 3 Category 11 estimates for full-year 2022 as of March 1, 2023. The greenhouse gas intensity and greenhouse gas emission estimates include Scope 2 market-based emissions. The Sustainability Report, the Advancing Climate Solutions Report, and corresponding Executive Summaries were issued on Jan. 8, 2024. The content and data referenced in these publications focus primarily on our operations from Jan. 1, 2022 – Dec. 31, 2022, unless otherwise indicated. Information regarding some known events or activities in 2023 are also included. No party should place undue reliance on these forward-looking statements, which speak only as of the dates of these publications. All forward-looking statements are based on management’s knowledge and reasonable expectations at the time of publication. We do not undertake to provide any further updates or changes to any data or forward-looking statements in these publications. Neither future distribution of this material nor the continued availability of this material in archive form on our website should be deemed to constitute an update or re-affirmation of these figures or statements as of any future date. Any future update will be provided only through a public disclosure indicating that fact.
ABOUT THE ADVANCING CLIMATE SOLUTIONS AND SUSTAINABILITY REPORTS
The Advancing Climate Solutions Report contains terms used by the TCFD, as well as information about how the disclosures in this report are consistent with the recommendations of the TCFD. In doing so, ExxonMobil is not obligating itself to use any terms in the way defined by the TCFD or any other party, nor is it obligating itself to comply with any specific recommendation of the TCFD or to provide any specific disclosure. For example, with respect to the term “material,” individual companies are best suited to determine what information is material, under the long-standing U.S. Supreme Court definition, and whether to include this information in U.S. Securities and Exchange Act filings. In addition, the ISSB is evaluating standards that provide their interpretation of TCFD which may or may not be consistent with the current TCFD recommendations.
These publications have been prepared at shareholders’ request or for their convenience and intentionally focused on unknown future events that we have been asked to consider. Forward-looking and other statements regarding environmental and other sustainability efforts and aspirations are not intended to communicate any material investment information under the laws of the United States or represent that these are required disclosures. These publications are not intended to imply that ExxonMobil has access to any significant non-public insights on future events that the reader could not independently research. In addition, historical, current, and forward-looking environmental and other sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future, including future laws and rulemaking. Forward-looking and other statements regarding environmental and other sustainability efforts and aspirations are for informational purposes only and are not intended as an advertisement for ExxonMobil’s equity, debt, businesses, products, or services and the reader is specifically notified that any investor-requested disclosure or future required disclosure is not and should not be construed as an inducement for the reader to purchase any product or services. The statements and analysis in these publications represent a good faith effort by the Company to address these investor requests despite significant unknown variables and, at times, inconsistent market data, government policy signals, and calculation, methodologies, or reporting standards.
Actions needed to advance ExxonMobil’s 2030 greenhouse gas emission-reductions plans are incorporated into its medium-term business plans, which are updated annually. The reference case for planning beyond 2030 is based on the Company’s Global Outlook research and publication. The Global Outlook is reflective of the existing global policy environment and an assumption of increasing policy stringency and technology improvement to 2050. However, the Global Outlook does not attempt to project the degree of required future policy and technology advancement and deployment for the world, or ExxonMobil, to meet net zero by 2050. As future policies and technology advancements emerge, they will be incorporated into the GIobal Outlook, and the Company’s business plans will be updated as appropriate. References to projects or opportunities may not reflect investment decisions made by the corporation or its affiliates. Individual projects or opportunities may advance based on a number of factors, including availability of supportive policy, permitting, technological advancement for cost-effective abatement, insights from the company planning process, and alignment with our partners and other stakeholders. Capital investment guidance in lower-emission investments is based on our corporate plan; however, actual investment levels will be subject to the availability of the opportunity set, public policy support, other factors, and focused on returns.
Energy demand modeling aims to replicate system dynamics of the global energy system, requiring simplifications. The reference to any scenario or any pathway for an energy transition, including any potential net-zero scenario, does not imply ExxonMobil views any particular scenario as likely to occur. In addition, energy demand scenarios require assumptions on a variety of parameters. As such, the outcome of any given scenario using an energy demand model comes with a high degree of uncertainty. For example, the IEA describes its NZE scenario as extremely challenging, requiring unprecedented innovation, unprecedented international cooperation, and sustained support and participation from consumers, with steeper reductions required each year since the scenario’s initial release. Third-party scenarios discussed in these reports reflect the modeling assumptions and outputs of their respective authors, not ExxonMobil, and their use or inclusion herein is not an endorsement by ExxonMobil of their underlying assumptions, likelihood, or probability. Investment decisions are made on the basis of ExxonMobil’s separate planning process but may be secondarily tested for robustness or resiliency against different assumptions, including against various scenarios. These reports contain information from third parties. ExxonMobil makes no representation or warranty as to the third-party information. Where necessary, ExxonMobil received permission to cite third-party sources, but the information and data remain under the control and direction of the third parties. ExxonMobil has also provided links in this report to third-party websites for ease of reference. ExxonMobil’s use of the third-party content is not an endorsement or adoption of such information.
ExxonMobil reported emissions, including reductions and avoidance performance data, are based on a combination of measured and estimated data. We assess our performance to support continuous improvement throughout the organization using our Environmental Performance Indicator (EPI) process. The reporting guidelines and indicators in the Ipieca, the American Petroleum Institute (API), the International Association of Oil and Gas Producers Sustainability Reporting Guidance for the Oil and Gas Industry (4th edition, 2020, revised February 2023) and key chapters of the GHG Protocol inform the EPI process and the selection of the data reported. Emissions reported are estimates only, and performance data depends on variations in processes and operations, the availability of sufficient data, the quality of those data and methodology used for measurement and estimation. Emissions data is subject to change as methods, data quality, and technology improvements occur, and changes to performance data may be updated. Emissions, reductions, abatements and enabled avoidance estimates for non-ExxonMobil operated facilities are included in the equity data and similarly may be updated as changes in the performance data are reported. ExxonMobil’s plans to reduce emissions are good-faith efforts based on current relevant data and methodology, which could be changed or refined. ExxonMobil works to continuously improve its approach to identifying, measuring, and addressing emissions. ExxonMobil actively engages with industry, including API and Ipieca, to improve emission factors and methodologies, including measurements and estimates.
Any reference to ExxonMobil’s support of, work with, or collaboration with a third-party organization within these publications do not constitute or imply an endorsement by ExxonMobil of any or all of the positions or activities of such organization. ExxonMobil participates, along with other companies, institutes, universities and other organizations, in various initiatives, campaigns, projects, groups, trade organizations, and other collaborations among industry and through organizations like the United Nations that express various ambitions, aspirations and goals related to climate change, emissions, sustainability, and the energy transition. ExxonMobil’s participation or membership in such collaborations is not a promise or guarantee that ExxonMobil’s individual ambitions, future performance or policies will align with the collective ambitions of the organizations or the individual ambitions of other participants, all of which are subject to a variety of uncertainties and other factors, many of which may be beyond ExxonMobil’s control, including government regulation, availability and cost-effectiveness of technologies, and market forces and other risks and uncertainties. Such third parties’ statements of collaborative or individual ambitions and goals frequently diverge from ExxonMobil’s own ambitions, plans, goals, and commitments. ExxonMobil will continue to make independent decisions regarding the operation of its business, including its climate-related and sustainability-related ambitions, plans, goals, commitments, and investments. ExxonMobil’s future ambitions, goals and commitments reflect ExxonMobil’s current plans, and ExxonMobil may unilaterally change them for various reasons, including adoption of new reporting standards or practices, market conditions; changes in its portfolio; and financial, operational, regulatory, reputational, legal and other factors.
References to “resources,” “resource base,” “recoverable resources” and similar terms refer to the total remaining estimated quantities of oil and natural gas that are expected to be ultimately recoverable. The resource base includes quantities of oil and natural gas classified as proved reserves, as well as quantities that are not yet classified as proved reserves, but that are expected to be ultimately recoverable. The term “resource base” is not intended to correspond to SEC definitions such as “probable” or “possible” reserves. For additional information, see the “Frequently Used Terms” on the Investors page of the Company’s website at www.exxonmobil.com under the header “Resources.” References to “oil” and “gas” include crude, natural gas liquids, bitumen, synthetic oil, and natural gas. The term “project” as used in these publications can refer to a variety of different activities and does not necessarily have the same meaning as in any government payment transparency reports.
Exxon Mobil Corporation has numerous affiliates, many with names that include ExxonMobil, Exxon, Mobil, Esso, and XTO. For convenience and simplicity, those terms and terms such as “Corporation,” “company,” “our,” “we,” and “its” are sometimes used as abbreviated references to one or more specific affiliates or affiliate groups. Abbreviated references describing global or regional operational organizations, and global or regional business lines are also sometimes used for convenience and simplicity. Nothing contained herein is intended to override the corporate separateness of affiliated companies. Exxon Mobil Corporation’s goals do not guarantee any action or future performance by its affiliates or Exxon Mobil Corporation’s responsibility for those affiliates’ actions and future performance, each affiliate of which manages its own affairs. For convenience and simplicity, words like venture, joint venture, partnership, co-venturer and partner are used to indicate business relationships involving common activities and interests, and those words may not indicate precise legal relationships. These publications cover Exxon Mobil Corporation’s owned and operated businesses and do not address the performance or operations of our suppliers, contractors or partners unless otherwise noted. In the case of certain joint ventures for which ExxonMobil is the operator, we often exercise influence but not control. Thus, the governance, processes, management and strategy of these joint ventures may differ from those in these reports. At the time of publication, ExxonMobil has completed the acquisition of Denbury Inc. and is in the process of acquiring Pioneer Natural Resources. These reports do not speak of these companies’ historic governance, risk management, strategy approaches or emissions performance unless specifically referenced.
These reports or any material therein is not to be used or reproduced without the permission of Exxon Mobil Corporation. All rights reserved.
SUPPLEMENTAL INFORMATION FOR NON-GAAP AND OTHER MEASURES
The Resiliency section of the Advancing Climate Solutions Report mentions modeled operating cash flow in comparing different businesses over time in a future scenario. Historic operating cash flow is defined as net income, plus depreciation, depletion and amortization for consolidated and equity companies, plus noncash adjustments related to asset retirement obligations plus proceeds from asset sales. The Company’s long-term portfolio modeling estimates operating cash flow as revenue or margins less cash expenses, taxes and abandonment expenditures plus proceeds from asset sales before portfolio capital expenditures. The Company believes this measure can be helpful in assessing the resiliency of the business to generate cash from different potential future markets. The performance data presented in the Advancing Climate Solutions Report and Sustainability Report, including on emissions, is not financial data and is not GAAP data.