Lobbying
In this article
This report is the second annual edition of our Climate Lobbying Report, covering calendar year 2022. It provides an assessment of ExxonMobil and its affiliates’ lobbying activities in relevant trade associations.
Key assessment highlights from the 2022 report include:
- For this reporting period, ExxonMobil assessed a total of 56 organizations, including 7 new organizations. We are no longer active with the following organizations, which were previously assessed as Aligned in 2021:
- Australian Industry Greenhouse Network (AIGN)
- World Business Council for Sustainable Development (WBCSD)
- Three organizations are classified as Partially Aligned
- American Fuel and Petrochemical Manufacturers (AFPM), moving from Misaligned in 2021
- Louisiana Mid-continent Oil and Gas Association (LMOGA)
- Texas Oil and Gas Association (TXOGA)
- Based on an assessment of a variety of policy positions including and beyond climate, ExxonMobil has withdrawn membership from the Independent Petroleum Association for America (IPAA), which was deemed Misaligned in 2021
As the events of 2022 demonstrated, the need for a balanced approach has never been greater. We saw firsthand what happens when the market believes there will be a shortfall in energy supply. At the same time, in the U.S. we saw landmark legislation offer the policy and financial support needed to drive the growth of key lower-carbon emissions technology like carbon capture and storage. In both cases, ExxonMobil has been a leader, just as we have throughout our 140-year history.
Lobbying
ExxonMobil undertakes lobbying in order to advocate for our positions on issues that affect our company, the energy industry, and overall competitive free markets. We have a responsibility to our shareholders, employees, customers, and communities to represent their interests in public policy discussions that are related to our industry and impact our business.
ExxonMobil has a rigorous process to determine which public policy issues are of most importance to the company. This process includes soliciting input from internal business lines, Low Carbon Solutions, Upstream, and Product Solutions, as well as corporate departments including strategic planning, human resources, law, tax, and public and government affairs. We also engage with a wide range of third parties – both individuals and organizations – to ensure external perspectives are considered. ExxonMobil’s Vice President for Public and Government Affairs, who reports directly to the Chief Executive Officer, is responsible for the stewardship of identified key public policy issues, which guide the company’s lobbying efforts and political contributions.
Lobbying and political engagement are included as part of the Board’s stewardship of the company’s enterprise-risk framework. Each year, the Vice President for Public and Government Affairs presents the company’s political contributions, lobbying activities and lobbying expenditures to the full Board, along with the Board’s Environment, Safety and Public Policy Committee [formerly called the Public Issues and Contributions Committee (PICC)], which is comprised entirely of independent directors. The directors review the efforts and associated expenditures. In addition, in-depth reviews of the company’s priority issues are conducted with the Management Committee several times a year as part of the process.
Direct lobbying
ExxonMobil acknowledges the risks of climate change and has long expressed support for the goals of the Paris Agreement. Our policy principles, outlined in this report, and associated lobbying are consistent with helping society achieve its ambition for a net-zero future. Our direct lobbying activities are aligned with limiting average global warming to well below 2 degrees Celsius and include strong support for policies that will incentivize carbon emission reductions while providing the energy security the world needs.
An example of this is ExxonMobil’s strong support for policies that will incentivize large-scale carbon capture and storage projects, a technology that both the United Nations Intergovernmental Panel on Climate Change (IPCC) and the International Energy Agency (IEA) agree is one of the most important low-carbon technologies required to achieve society’s climate goals at the lowest cost.
ExxonMobil has also lobbied in support of strong methane regulations (including filing supportive comments to EPA’s proposed methane rule), and publicly supported the Global Methane Pledge to reduce methane emissions by 30% below 2020 levels by 2030. We introduced a model regulatory framework for industry-wide methane regulations and were the first company to file an application with the U.S. Environmental Protection Agency (EPA) to use new technologies to detect methane emissions at oil and natural gas sites. We have advocated for policymakers globally to advance comprehensive, enhanced rules to reduce methane emissions in all phases of production.
ExxonMobil’s Lobbying Report provides additional detail of our direct and indirect climate-related lobbying activities at the federal, state and local level, as well as our grassroots lobbying communications. In addition, the report provides all lobbying expenses that have been reported to us by all 501(c)(6) and 501(c)(4) organizations that we support. This includes more than 100 organizations and 100% of the lobbying expenses incurred, as well as the issues lobbied.
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