2012 Corporate Citizenship Report Letter from the Chairman and CEO
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2012 CORPORATE CITIZENSHIP REPORT Letter from the Chairman and CEO Welcome to the 2012 Corporate Citizenship Report. Our commitment to operating in an environmentally incident. When working to ensure operational Our commitment — to our employees, shareholders responsible manner is anchored in our integrity, our goal is to manage risk to avoid and the communities and countries where we work Environmental Policy. Our approach starts with incidents such as these. But it is also important — to operate safely and responsibly starts with our gaining a thorough understanding of the local that if they do occur, we have the competency planning, management and accountability systems. It surroundings. This understanding is critical to our and the capability to respond and a process to flows from the expertise and diligence of thousands performance. We discuss this process on page 17. integrate lessons learned into future operations of employees and contractors around the world. to reduce the risk of reoccurrence. Each day, it is their integrity, attention to detail and We also recognize the importance of understanding concern for the local communities in which they and managing the environmental and social risks Building Stakeholder Trust live and work that shape our culture of safety and associated with climate change. ExxonMobil is Industry must work to build stakeholder trust. drive our citizenship and operational performance. taking steps to reduce our own greenhouse gas With every new technological advance comes a Their efforts — and commitment to continuous emissions, investing more than $330 million this renewed obligation to address public questions improvement — are what we highlight in this report. year alone, as you will read on page 30. and concerns. That is why we must continue to engage with communities about how we Our Role In the communities where we operate, we continue systematically mitigate risk in our operations. You In the coming decades, society will continue to to work to foster responsible economic growth by will read more about this engagement throughout face complex challenges related to a growing partnering with international institutions to develop this report. For example, the movement to unlock world population, economic growth, climate suppliers and train workers in transferrable skills. unconventional natural gas resources in the change, food security and public health, among We discuss one such example in our Sakhalin case United States has spurred economic growth and others. Most of these issues can only be tackled study on page 56, where decades of collaboration contributed to reducing the nation’s greenhouse through effective dialogue and cooperative action have led to increased local capacity. gas emissions to levels not seen in 20 years. It “ExxonMobil’s role is to create between governments, business and civil society. has also prompted questions from stakeholders the technologies and techniques We must recognize that none of the challenges Commitment to Performance about methods industry employs to access these to develop and supply energy we face can be addressed without reliable and We have established systematic policies and resources, and the proximity of operations to local affordable access to energy. Energy powers our processes to measure, monitor and improve our communities. It is important that we continue to growing populations and offices and schools. It runs life-saving medical economic, social and environmental performance. listening to those who have a shared stake in economies — in a safe, secure equipment and operating rooms. It manufactures Strong results require effective risk management. this and other issues so that we can continue to and environmentally responsible vaccines and transports medical personnel. They require long-term planning, undeterred by build their trust. We look forward to continually manner.” ExxonMobil’s role is to create the technologies the episodic ups and downs of regional and improving our performance and contributing to and techniques to develop and supply energy to global economic performance. They also require innovation and growth in the decades to come. growing populations and economies — in a safe, a relentless focus on operational integrity and — Rex W. Tillerson, Chairman and CEO secure and environmentally responsible manner. best practices. As you will read in this report, we We appreciate your interest in ExxonMobil, and focus on long-term, incremental improvements we welcome your comments on this report at Our Long-Term Responsibility that drive sustainable results. For example, we exxonmobil.com/citizenship. ExxonMobil is focused on the long term. Our have used a variety of methods to improve safety projects — and their impacts — span generations, performance, reducing our lost-time incident rate not business or political cycles. Our long-term from 2000 to 2012 by 70 percent. perspective helps us focus on our responsibilities for environmental protection, social development In early 2013, ExxonMobil Pipeline Company Rex W. Tillerson and economic growth. That’s why we are responded to a crude oil spill in Mayflower, Chairman and CEO committed to providing our employees and Arkansas — a regrettable event for which we contractors with a safe workplace, and we expect are deeply sorry. We responded immediately everyone to strive to reduce safety incidents. We with a focus on community safety, restoring the discuss this culture of safety on page 37. environment and understanding the cause of the 02 exxonmobil.com 2012 Corporate Citizenship Report Table of Contents Letter from the Chairman and CEO About ExxonMobil The Outlook for Energy: 02 04 06 A View to 2040 07 Engagement 08 About this Report 09 Managing Sustainability Issues Performance Data IPIECA/GRI Content Index Key Processes and 10 12 13 Management Systems 15 25 27 28 34 35 Environmental Managing Climate Safety, Health and Performance Change Risks the Workplace • Conducting impact • Greenhouse gas emissions • Personnel and assessments • Energy efficiency process safety • Freshwater management • Cutting-edge technology • Emergency preparedness Case Study: Case Study: Case Study: • Spill prevention • Public policy debate • Employment policies • Restoring the environment Unconventional Natural Employing New Sustainable Products in and practices Gas Development Technology to Unlock the Chemical Business • Employee benefits Canadian Oil Sands and programs 43 49 56 58 66 Corporate Economic Development and Human Rights and Managing Governance Supply Chain Management Community Impacts • Board of directors • National content • Identifying socioeconomic • Executive compensation • Workforce development aspects and strategic advantage • Supply chain management • Respecting human rights Case Study: Assurance Statement • Shareholder relations • Transparency • Indigenous peoples • Political advocacy Developing Long-Term • Strategic community Featured on the cover of the 2012 and contributions Capacity in Sakhalin investments Corporate Citizenship Report is a natural gas rig in Bad Laer, Germany. 03 exxonmobil.com 2012 Corporate Citizenship Report About ExxonMobil ExxonMobil’s 2012 Global ExxonMobil is the world’s Economic Contribution largest publicly traded oil Capital and and gas company. We help exploration Shareholder expenditures distributions provide energy that is $40 billion $30 billion fundamental to improving the lives of billions of people around the world. Access to energy underpins human $221 billion comfort, mobility, economic prosperity and social Production, progress. It touches nearly Government manufacturing taxes and and office every aspect of modern life. duties expenses $102 billion $49 billion We take our role to supply energy seriously, Oil and Gas Industry and we recognize that Contributions to the it comes with many U.S. Economy responsibilities — to Jobs Supported Upstream Downstream Chemical ExxonMobil has an Upstream As the largest global refiner, ExxonMobil is a leader in our shareholders, % asset base that is geographically ExxonMobil has interests in the chemical industry, with neighbors, customers 5.3 and geologically diverse, with 32 refineries in 17 countries, interests in 46 wholly owned 9.2 of U.S. exploration and production supplying fuels, lubricants and and joint-venture manufac- and communities. Our million employees, technical employment acreage in 36 countries, pro- other high-value products and turing locations worldwide. duction sites in 23 countries feedstocks to our customers. ExxonMobil is the largest pro- Labor Income expertise, financial and sales of natural gas in 33 We are a market leader of ducer of polyolefins, including strength, global reach countries. Our total portfolio of high-technology and globally plastics and polymers, and and the management $ % 28 major development projects recognized synthetic lubricant one of the largest producers 533.5 6.0 is expected to produce 1 million brands, as well as a leading of basic petrochemical build- practices that we billion of U.S. net oil-equivalent barrels per supplier of asphalt and ing blocks, such as aromatics labor income build into the fabric day in new production by 2017. specialty products. and olefins. of our operations Value Added to U.S. Economy provide ExxonMobil $ % with long-term 1.1 7.7 4.24.2 6.466.46.2.2 2424 of U.S. gross investment value and a trillion domestic product millionmillion oil-equivalent oil-equivalent barrels barrels millionmillion barrels barrels millionmillion metric