Exxon Mobil Corporation
2008 Corporate Citizenship Report 2008 Corporate Citizenship Report Table of contents
Sustainability. A key goal of our corporate Managing Climate Change Risks. Meeting Economic Development. Barriers to citizenship strategy is to address the the enormous energy demand growth economic development may be reduced challenge of sustainability—balancing and managing the risk of greenhouse gas through skills development, job creation, economic growth, social development, emissions are the twin challenges of our and investment opportunities. and environmental protection. See page 2 time. See page 30 See page 34
1 A Long-Term Vision 10 Issues and Indicators 24 Environmental Performance A letter from the Chairman and CEO Determining and reviewing material issues Protect Tomorrow. Today. 2 Sustainability 11 Performance Data Table 30 Managing Climate Change Risks Balancing economic growth, social Business highlights and citizenship Meeting growing demand, reducing development, and environmental protection performance data greenhouse gas emissions 4 About ExxonMobil 12 A View to 2030 34 Economic Development 2008 events and operations Outlook for Energy Local actions, global results 6 Performance Overview 14 Corporate Governance 42 Human Rights and Security Progress and plans Managing with standards and systems Fostering a stable business environment 8 Engagement 20 Safety and Health 44 IPIECA/GRI Content Index Activities and outcomes of our Working toward an incident-free workplace stakeholder engagement
About this report This report was produced in accordance with the reporting guidelines and indicators of the International Petroleum Industry Environmental Conservation Association (IPIECA) and the American Petroleum Institute (API) Oil and Gas Industry Guidance on Voluntary Sustainability Reporting (April 2005). The majority of these indicators are also consistent with the indicators used by the Global Reporting Initiative (GRI) in the G3 Sustainability Reporting Guidelines.
Our 2008 Corporate Citizenship Report describes our efforts in a range of areas relating to the fi nancial, environmental, and social performance of the Corporation. The report is intended for anyone interested in learning more about our corporate citizenship efforts.
We value your feedback on this report and our performance in addressing fi nancial, environmental, and social issues. For additional information and to provide comments, please go to our Web site (exxonmobil.com/citizenship) or contact:
Ms. Noa Gimelli Corporate Citizenship ExxonMobil 3225 Gallows Road Fairfax, VA 22037 E-mail: [email protected]
LRQA Assurance Summary Statement. Lloyd’s Register Quality Assurance, Inc. (LRQA) believes the ExxonMobil reporting system is effective in delivering safety, health, and environmental indicators, which are useful for assessing corporate performance and for reporting information consistent with the IPIECA/API Guidance. For the full assurance statement, see the inside back cover.
Note: Exxon Mobil Corporation has numerous affi liates, with many names that include ExxonMobil, Exxon, Mobil, and Esso. For convenience and simplicity, those terms and terms such as Corporation, company, our, we, and its are sometimes used as abbreviated references to specifi c affi liates or affi liate groups. The report reviews our corporate citizenship performance as of December 31, 2008. There were no signifi cant structural changes in 2008. Most environmental data are reported in metric units. Financial information is reported in U.S. dollars. “In such turbulent times, successful companies are those that see business discipline and corporate citizenship as interlinked.” Rex W. Tillerson, Chairman and CEO A Long-Term Vision A letter from Rex W. Tillerson, Chairman and CEO
By nearly any measure, 2008 was a the components of sustainability—economic In all areas of corporate citizenship, we listen year of extremes. Oil prices reached growth, social development, and environmental to others in order to understand different nearly $150 per barrel and later fell protection. Given the scale of our business perspectives, to regularly assess our prog- and the diversity of cultures in which we oper- ress, and to know where we need to improve. to below $50 a barrel. Our industry’s ate, we find that the best way to achieve this While proud of our achievements, we are not earnings, while near the average of most is to embed the many aspects of corporate complacent. Five contractor fatalities in 2008 other industries’ in relative terms, broke citizenship directly into our global business was five too many, which is why we maintain records in absolute terms. At the same time, processes, so that they are clearly understood a relentless focus on safety at our facilities. turmoil in global financial markets shook wherever we operate. In 2008, our safety performance continued to investor and consumer confidence, and lead the industry. again brought questions of corporate Despite the current economic downturn, we governance, business ethics, free market anticipate global demand for energy will grow The goal of our 2008 Corporate Citizenship principles, and the role of government into significantly over the long term, particularly Report is to detail our performance and the public spotlight. in the developing world. All economic energy commitment in our most significant citizen- sources will be important in meeting that de- ship areas: corporate governance, safety and In such turbulent times, successful compa- mand. This includes sources such as nuclear, health, environmental performance, managing nies are those that see business discipline wind, solar, and biofuels, which will make climate change risks, economic development, and corporate citizenship as interlinked. We important and growing contributions. It also and human rights and security. consider ExxonMobil’s philosophy of invest- includes hydrocarbon energy sources, such ing with a long-term perspective—rather than I hope you find this information helpful in as oil, natural gas, and coal. Because of their reacting to short-term market fluctuations— understanding our commitment to corporate relative availability, affordability, and versatil- as a cornerstone of our successful business citizenship and our progress to date. We ity—and given the enormous scale of global model. We believe companies that retain a welcome any comments you may have. energy demand—they will continue to be systematic focus on corporate governance, the predominant energy sources for the ethics, safety, environmental performance, foreseeable future. and community engagement in the down- cycle will be best placed to succeed in We recognize our responsibility to help meet Rex W. Tillerson the up-cycle. this growing energy demand while working to Chairman and CEO reduce the impact on the environment. To that ExxonMobil’s role is to provide energy to end, we are taking action—improving our own sustain and improve standards of living for energy efficiency, helping consumers improve people worldwide while delivering a return to theirs, and seeking new technologies that our shareholders. We are committed to taking could be the game-changers that tomorrow’s on this challenge in a manner that reflects vast global energy system will require. our own culture of integrity while balancing
2008 Corporate Citizenship Report 1 Citizenship focus areas
Corporate Governance. Our respon- Safety and Health. ExxonMobil Environmental Performance. sibilities to our employees, shareholders, protects the safety of our employees, ExxonMobil is committed to conducting customers, and the communities in which contractors, customers, and the public by business throughout the world in a manner we operate are integral to the way we do implementing policies to manage person- that protects the environment. business. See page 14 nel and process safety. See page 20 See page 24
Sustainability Balancing economic growth, social development, and environmental protection
Finding, developing, and delivering scale and perceived influence of our business, Environmental Performance and believe that by operating in a responsible reliable and affordable supplies of ExxonMobil is committed to conducting manner we significantly contribute to eco- energy to support economic prog- business throughout the world in a manner nomic and social development. ress have long been the foundation that protects the environment. We integrate of ExxonMobil’s business. By embedding corporate citizenship into our environmental improvement into our busi- business processes, we link our nonfinancial ness plans and strategies, and address key A key goal of our corporate citizenship performance with our business strategy. environmental issues that are specific to the strategy is to address the challenge of This enables us to focus our efforts on long- processes and activities of each business. sustainability—balancing economic growth, term value drivers that contribute to the social development, and environmental success of our company and progress for Managing Climate protection, so that future generations are society at large. Change Risks not compromised by actions taken today. We address the challenge of sustainability Our strategy to reduce greenhouse gas Meeting the world’s growing demand for through six citizenship focus areas: emissions from our operations and consumer energy will not be achieved without environ- use of products includes improving our own mental impact. Reducing this impact, while Corporate Governance energy efficiency, advancing proven emis- not diminishing society’s access to energy, ExxonMobil manages safe, reliable, and sions-reducing technology, and developing is a critical step toward a sustainable energy ethical operations worldwide as well as breakthrough technologies for the long term. system for the future. We address this corporate citizenship issues through our challenge through a focus on improving the Economic Development globally deployed management systems. efficiency and environmental performance We expect our employees to integrate ExxonMobil seeks to create long-term of our current operations and products while corporate citizenship into their work-related economic and social benefits from our developing technologies that can substantially activities and decision-making processes. projects and presence. We employ a variety reduce the environmental footprint of energy Our management and controls systems are of economic support and incentive programs, use for the long term. designed to support that goal. including workforce development, supplier As a driver of economic growth and individual development, and strategic community prosperity, the energy business is essential Safety and Health investments—collectively referred to as na- to modern society and development. We ExxonMobil protects the safety of our tional content development. Our contributions impact societies through the jobs we create; employees, contractors, customers, and the to economic development allow us to reduce the revenues we generate for governments; public by implementing policies to manage barriers to development in the communities the impact of our social investments in areas personnel and process safety. Our commit- where we operate and are consistent with the such as local capacity building, education, ment to safe, secure, and incident-free opera- objectives of the United Nations Millennium and health; and the way we engage and work tions contributes to improved operations Development Goals. with external parties. We are mindful of the reliability, lower costs, and higher productivity.
2 exxonmobil.com Managing Climate Change Risks. Economic Development. We seek Human Rights and Security. We We are working on ways to reduce green- to create long-term economic and social believe our business presence can, and house gas emissions from our own opera- benefits from our projects and presence. should, have a positive influence on the tions and from energy use by consumers. See page 34 treatment of people in the communities See page 30 in which we operate. See page 42
up close: Human Rights and Security Managing corporate citizenship issues at ExxonMobil We actively promote respect for human rights, which is essential for helping to create a Good corporate citizenship is embedded in our business model. Citizenship issues are stable business environment. We believe our managed at, and communicated through, all levels of the Corporation. For more information business presence can, and should, have a about how the Board of Directors manages these issues, see page 14. positive influence on the treatment of people in the communities in which we operate. Board of Directors Chairman and CEO A balanced strategy Audit Committee, Board Affairs Committee, Compensation Committee, and Public Issues and Contributions Committee Being a successful business over the long term requires a thoughtful, proactive approach to each of these focus areas. By Management Committee balancing economic growth, social develop- ment, and environmental protection, we are able to address today’s energy challenges Audit while maintaining our license to operate in Controller’s Company Presidents Corporate Planning communities around the world. Human Resources Investor Relations Law Public Affairs Site Operations Safety, Health, and Environment Tax Treasurer’s
Example of management in action Issue: Improving energy efficiency across worldwide refining and chemical operations by 10 percent between 2002 and 2012. Approach: Following approval by the Management Committee, the Refining and Chemical businesses are responsible for achieving the goal. Site operations management implements on the Web: facility-level energy intensity improvement measures to achieve this goal, under the guidance of the presidents of Refining and Chemical. Corporate Safety, Health, and Environment collects Directors, officers, and committees data on progress from the businesses and presents it annually to the Management Committee exxonmobil.com/governance and the Public Issues and Contributions Committee of the Board for review and discussion.
2008 Corporate Citizenship Report 3 Operational profile
Upstream. The company holds exploration Downstream. We have interests in 37 refin- Chemical. We are a global leader in the and production acreage in 38 countries eries, and fuels and lubes marketing activities petrochemical industry. Over 90 percent and conducts production operations in around the world. We are the largest global of our chemical businesses rank first or 23 countries around the world. refiner, manufacturer of lube basestocks, and second, by market position, worldwide. supplier/marketer of petroleum products. About ExxonMobil 2008 events and operations
First Quarter Second Quarter Third Quarter
January April July • Production from the first stage of the • Launched Mobil 1 Advanced Fuel Economy • Announced plans to invest $1.1 billion to Kizomba C development began from the synthetic motor oil, designed to improve fuel develop more than 270 million oil-equivalent Mondo field in Block 15, offshore Angola. economy for passenger cars. See page 32 barrels (gross) from the Turrum field in the Full production from the Mondo and Saxi / Bass Strait, offshore southeast Australia. • Announced plans to donate $10 million to Batuque (which started up in Q3, 2008) anti-malaria efforts through the “Idol Gives August Projects are expected to recover 600 million Back” episode of American Idol, which will • Committed $3.5 million to the Global Health barrels of oil (gross). See page 37 benefit Malaria No More. See page 37 Group at the University of California, San February Francisco to expand the University’s support May • Participated in Kazakhstan’s first for an unprecedented malaria elimination • ExxonMobil Chemical launched its national Extractive Industries Transparency effort in southern Africa. See page 37 Sustainable Development Web site. Initiative conference. See page 41 • Started up facilities to manufacture a revolu- • Announced a commitment of more than March tionary new tire material, expected to improve $100 million to complete development and • Announced plans to invest more than fuel economy. See page 32 testing of CFZTM technology, an improved $125 billion in capital spending over the natural gas treating technology, which could September next five years to help meet growing world make carbon capture and storage from natu- • Supported the Centre for Development and energy demand. See page 14 ral gas treatment more affordable and reduce Population Activities to conduct a Global • Started production from the East Area greenhouse gas emissions. See page 31 Women in Management Spanish-language Natural Gas Liquids II Project, offshore workshop in Mexico City. See page 38 June Nigeria. The project is expected to recover • The U.S. Supreme Court reduced the • Donated $6.5 million for disaster relief 300 million barrels of natural gas liquids punitive damages award for the 1989 assistance to U.S. communities along the (gross). This is part of our integrated plan to Exxon Valdez oil spill to $508 million. As of coast of the Gulf of Mexico in the aftermath significantly reduce gas flaring and improve December 31, 2008, the Corporation has of Hurricanes Gustav and Ike. See page 23 oil recovery. See page 33 paid out $383.4 million of the $508 million. • Launched EnableTM metallocene polyethyl- See page 26 ene, which produces strong and clear films • Chairman and CEO Rex W. Tillerson received that reduce packaging weight and deliver the Hispanic Heritage Foundation’s Inspira energy savings throughout the supply chain. Award for his leadership role in breaking bar- riers and creating opportunities for Hispanic youth, and for inspiring a new generation of Hispanic leaders.
4 exxonmobil.com up close: Global operations ExxonMobil is the world’s largest publicly traded petroleum and natural gas company. We operate facilities and market Technology. Over the past five years, ExxonMobil has invested more than products around the world and explore for oil and natural gas $5 billion in technology. on six continents. Below are a few highlights and examples of our global operations.
4
1
9 2 8 5
7
6 10 11 12 3
13
Fourth Quarter
October 1 Canada 8 China • ExxonMobil Chemical won the 2008 ICIS Commenced exploration drilling and evalu- ExxonMobil, along with our partners, is Chemical Business Award for Best Product ation of a shale gas play in the Horn River progressing an expansion project that will Innovation for its new battery separator film Basin in northeastern British Columbia. triple our refining capacity in the country technology. We also broke ground on a new and will also include a world-scale 2 battery separator film plant in South Korea. United States integrated chemical plant. See page 32 Maintain a significant position in all major producing regions, including the Gulf of 9 Russia • Announced a collaboration to develop next- Mexico, the mid-continent, onshore and Potential recoverable resources from the generation technology with Pratt & Whitney offshore California, and Alaska. Sakhalin-1 Project area are estimated at Rocketdyne to convert coal, coke, or biomass 2.3 billion barrels of oil and 17.1 trillion to synthesis gas, which would facilitate the 3 Brazil cubic feet of gas (gross). use of carbon capture and storage to reduce Commenced drilling operations in offshore greenhouse gas emissions. See page 31 Block BM-S-22 in the Santos Basin. 10 Malaysia November Natural gas production began from the 4 • The Board of Directors announced changes Norway offshore Jerneh B platform in 2008, and Operating or participating in more than to ExxonMobil’s Corporate Governance is expected to bring total production from 24 fields, ExxonMobil provides 10 percent Guidelines to enhance the role of the the field to 500 million cubic feet of gas of total Norwegian oil and gas production. Presiding Director. See page 17 per day (gross). December 5 Libya 11 Singapore • ExxonMobil and Africare initiated a Operator of three deepwater exploration Own and operate a 605-thousand-barrel- $1.75 million, three-year project designed blocks, with first drilling expected to com- per-day integrated refining and chemical to empower rural women in southern Chad mence in 2009. complex, our largest in the world. by developing their entrepreneurial capacity 6 in small business development. See page 36 West Africa 12 Indonesia ExxonMobil affiliates in Angola, Chad, Development of the Banyu Urip field in the • Shared corporate citizenship strategies Equatorial Guinea, and Nigeria are among Cepu Block continues and is expected to and best practices with the Riyadh Chamber the largest oil producers in those countries. produce 165 thousand barrels per day (gross). of Commerce and Saudi businesses. 7 Qatar 13 • Announced plans to invest over $1 billion Australia Working with Qatar Petroleum to develop to increase supplies of cleaner-burning diesel Gippsland operations have yielded almost the world’s largest nonassociated natural by approximately 6 million gallons per day. two-thirds of Australia’s cumulative oil gas field, to develop more than 25 billion production and almost 30 percent of oil-equivalent barrels (gross). Australia’s gas production.
2008 Corporate Citizenship Report 5 Highlights
Revised % % Corporate Governance 12 60 Guidelines to average annual reduction reduction enhance the role of in lost-time in the number of spills the Presiding Director incident rate since 2000 greater than one barrel since 2001 Challenge: Challenge: Challenge: Ensuring corporate governance Reducing incidents and Minimizing the environmental practices facilitate effective injuries to zero footprint of oil sands operations management of enterprise risks and support growth in shareholder value Performance Overview Progress and plans
Corporate Governance Safety and Health Environmental Performance
What we said in 2007 What we said in 2007 What we said in 2007 • Manage succession of non-employee directors • Emphasize hazard recognition and reduce risk • Continue historical trend in spill reduction to maintain effective independent oversight tolerance in our workforce • Reduce normalized emissions of volatile organic • Continue to demonstrate high ethical standards • Enhance use of human factors technology to ad- compounds (VOCs) and nitrogen oxides (NOx) from • Hold frequent meetings and discussions with dress issues such as worker fatigue and ergonomics our chemical operations by 5 percent per year • Work through the American Petroleum Institute (API) socially responsible investors, institutional investors, What we did in 2008 and other interested parties to develop industry indicators for process safety • Reduced spills greater than one barrel by over • Continue to review and enhance corporate • Continue to improve security measures to further 60 percent since 2001 governance policies and procedures to ensure enhance the protection of our people and assets • Achieved zero spills from ExxonMobil-operated best approaches are in place What we did in 2008 and long-term chartered marine vessels, sustaining What we did in 2008 • Emphasized hazard recognition through effective an impressive performance trend • Elected two independent directors to the Board use of tools, such as Last Minute Risk Assessment • Reduced normalized emissions of VOCs and following the retirement of two independent directors and ongoing training on “risk tolerant behavior” NOx from our chemical operations by more than • Held face-to-face sessions with all professional • Established a global Human Factors Technology 5 percent per year since 2004 employees to reinforce the Standards of Business Center of Excellence to champion the application • Built the world’s first Q-Max liquefied natural gas Conduct of human factors technology and to support our carrier with Qatar Petroleum, which will carry up to • Conducted three calls with the Sustainable vision of Nobody Gets Hurt 80 percent more cargo, but require approximately Investment Research Analyst Network (SIRAN) • Worked with API on the development of new 40 percent less energy per unit of cargo than conventional ships • Revised Corporate Governance Guidelines to standards for fatigue management and industry enhance the role of the Presiding Director indicators for process safety What we plan to do • Began senior-level benchmarking study on major • Developed best practices to mentor and integrate • Continue historical trend in spill reduction new workers into the workplace shareholder engagement best practices • Reduce normalized emissions of VOCs and NOx • Stewarded investments of $26 billion in our • Developed and launched an Operations Integrity from our chemical operations by 5 percent per year Management System (OIMS) for office-based Upstream, Downstream, and Chemical businesses • Further reduce our environmental footprint, par- personnel, including a globally consistent baseline • Replaced 103 percent of production in 2008 ticularly in ecosystems with sensitive characteristics office ergonomics template for all ExxonMobil em- What we plan to do ployees and an Office Behaviors Observation Tool • Through the International Petroleum Industry Environmental Conservation Association, improve • Continue to manage succession of non-employee • Reinforced the Security Is Everybody’s Business existing industry environmental reporting indicators directors to maintain effective independent oversight campaign, including awareness training and to facilitate benchmarking and improvement improved reporting and analysis of security metrics • Hold frequent meetings and discussions with in overall sector results socially responsible investors, institutional investors, What we plan to do • Progress research to develop new solvents-based and other interested parties • Continue industry-leading safety record processing techniques to further lower freshwater • Participate in SIRAN engagement processes • Recommend an updated mix of leading and use in oil sands development • Continue to review and enhance corporate lagging metrics to facilitate a step-change in safety governance policies and procedures to ensure best performance that shows sustainable improvement approaches are in place for current operating context over time • Complete major shareholder engagement best • Complete the development of process safety practices study and implement learnings indicators through API • Refresh our existing OIMS framework 6 exxonmobil.com $1.5+ ~$225 7 billion invested million priority affiliates to increase energy efficiency and reduce combined corporate giving in cash, provided with dedicated greenhouse gas emissions since 2004 goods, and services worldwide human rights awareness training Challenge: Challenge: Challenge: Meeting increased energy Effectively implementing Maintaining security at needs while decreasing and managing national operations within a framework greenhouse gas emissions content programs in that promotes respect developing countries for human rights
What What What we said we did we plan in 2007 in 2008 to do
Managing Climate Change Risks Economic Development Human Rights and Security
What we said in 2007 What we said in 2007 What we said in 2007 • Improve energy efficiency by at least 10 percent • Create economic opportunities for local • Conduct human rights awareness training between 2002 and 2012 across our worldwide businesses, develop locally competitive supply • Host human rights conference for companies, refining and chemical operations chains, and expand and publicize details of nongovernmental organizations, and governments • Reduce upstream hydrocarbon flaring volumes national content development on our Web site in Latin America to provide information and tools by 50 percent over the next several years as our • Support transparency initiatives that apply to all for managing human rights challenges planned projects are implemented companies and protect proprietary information What we did in 2008 • Develop cost-effective technologies to increase • Expand the geographic reach of the Global • Provided dedicated human rights awareness future energy supplies, improve energy efficiency, Women in Management Program (GWIM) to Nigeria training to seven priority affiliates and reduce greenhouse gas emissions and Mexico in 2008 and to the Middle East and Latin America in 2009 • Co-hosted the Human Rights and the Oil & Gas What we did in 2008 Industry Conference in Latin America • Host three Mickelson ExxonMobil Teachers • Remained on target to improve energy efficiency Academy sessions in 2008 • Initiated affiliate self-assessments of implementa- by at least 10 percent between 2002 and 2012 tion of our Framework on Security and Human Rights across our worldwide refining and chemical operations What we did in 2008 • Enhanced private security personnel contracts to • Reduced upstream hydrocarbon flaring by about • Completed supplier development survey in include language to address human rights issues 30 percent Papua New Guinea • Served on the Steering Committee of the Voluntary • Established flare management protocol in Nigeria, • Served on the Board of the Extractive Industries Principles on Security and Human Rights as well as Angola, and Malaysia to rigorously monitor and Transparency Initiative (EITI) on a special Governance Group manage flare events • Held GWIM workshops in Nigeria, Mexico, and the • Developed and approved language regarding child • Continued to make energy efficiency improvements United States as well as one coaching workshop and forced labor for inclusion in certain engineering, both internally and for our customers • Hosted three Mickelson ExxonMobil Teachers procurement, and construction contracts • Added 125 megawatts of electric capacity through Academy sessions and 25 Bernard Harris Science • Participated in consultation sessions conducted by the start-up of new energy-efficient cogeneration Summer Camps John Ruggie, United Nations Special Representative facilities in Antwerp, Belgium • Provided $750,000 to Medicines for Malaria on Business and Human Rights Ventures for development of the first pediatric What we plan to do • Published an op-ed commemorating the malaria drug to be recognized by the World • Reduce upstream hydrocarbon flaring volumes 60th anniversary of the United Nations Universal Health Organization by more than 20 percent over the next several years Declaration of Human Rights from 2008 levels What we plan to do What we plan to do • Advance low carbon energy alternatives through • Begin work to understand our social impacts • Continue human rights awareness training for sponsored and in-house research and development and contribution to the United Nations Millennium appropriate management and staff in 2009 and 2010 Development Goals • Increase our interests in cogeneration capacity • Assist ExxonMobil affiliates to understand different • Monitor developments and engage with • Speak at the 2009 EITI Global Conference aspects of human rights and the affiliates’ role in governments, including the new U.S. Congress • Offer four GWIM workshops in Brazil, Cameroon, promoting respect for human rights and Administration, about climate change policy Egypt, and the United States and one coaching • Continue to improve security measures while around the world workshop respecting human rights • Work with the International Center for Research on • Continue active participation in the Voluntary Women to further refine the focus of our Educating Principles on Security and Human Rights Women and Girls Initiative and evaluate the impact of our women’s economic development projects
2008 Corporate Citizenship Report 7 Stakeholders
Governments Communities Shareholders Customers Suppliers Employees 38 countries and NGOs ~2.5 million ~7 million ~175,000 ~80,000 with exploration 440 interactive individuals in drivers per day suppliers of employees in and production sessions in ~2000 purchased fuel at goods and 80 countries acreage 34 countries institutions retail stations services around the world
Engagement Activities and outcomes of our stakeholder engagement
Engagement is an increasingly impor- suppliers, employees, and others to help 2007 Corporate Citizenship Report. As a tant component of our corporate identify and manage issues of mutual concern result of this feedback, this year’s report was citizenship strategy. Our engagement and interest. We seek dialogue with those developed to give the greatest attention to efforts help ExxonMobil identify those issues groups and individuals that our operations our most material issues (see page 10). directly impact or that can have a direct that are most material to our business opera- In addition, stakeholder engagement on the impact on our operations or reputation. Our tions and shape our approach to addressing 2007 Corporate Citizenship Report resulted in: a range of areas relating to the financial, engagement takes many forms, including social, and environmental performance of internal and external one-on-one and group • Increased focus on challenges and the Corporation. dialogues; senior executive speeches; quar- outcomes, and less on processes; terly earnings teleconferences; focus groups; • Discussion of our business case and community consultations; e-mail communi- Communication strategy for sustainability; and engagement cations; publications such as the Corporate Citizenship Report, Summary Annual Report, • Inclusion of a specific example of a We are continually working to enhance the and The Lamp; and content on our Web site. high-profile shareholder resolution and the quality of our community engagement and Corporation’s response; external relations, with the goal of fostering In 2009, Chairman and CEO Rex W. Tillerson understanding, trust, and cooperation on will be recognized by IR Magazine through its • Greater discussion on certain issues such key issues. To be effective, our outreach Best Investor Relations by a CEO Award for as oil sands, public policy, and flaring; and, efforts must be built on honest, transparent, his efforts to engage investors in 2008. The • Enhanced review and assurance of the accurate, and timely information. Over the award is based on survey results from more report through an External Assessment Panel. past year, our engagement activities covered than 3500 financial analysts. a wide range of topics, including environ- mental, governance, and social issues. Improving corporate reporting through stakeholder feedback Successful dialogue entails a deep understand- ing of our business parameters, operations, ExxonMobil is committed to continuous im- on the Web: and industry issues by key stakeholders. We provement in reporting. Each year, we solicit Summary Annual Report address this challenge by gathering senior feedback on our Corporate Citizenship Report exxonmobil.com/sar policy analysts, executive directors of non- from external experts and use this feedback governmental organizations (NGOs), and social in our report planning process. Financial & Operating Review exxonmobil.com/fo investment professionals for in-depth dialogues In 2008, we conducted interviews with with senior management at ExxonMobil. NGOs, socially responsible investment firms, The Lamp exxonmobil.com/lamp Worldwide, we engage with the communities academia, international organizations, and E-mail communications to in which we operate as well as with govern- industry analysts to identify information [email protected] ments, NGOs, shareholders, customers, gaps, strengths, and weaknesses in our
8 exxonmobil.com up close: Worldwide dialogue Engagement takes many forms and includes in-depth conversations with governments, NGOs, shareholders, customers, suppliers, employees, and others. The outcome of these dialogues is described below in three examples of our efforts to enhance corporate policies and practices, address environmental issues, and respond to concerns in the communities where we operate.
Share Listen re 2 We enter into engagement in a spirit of ha . We seek to develop a comprehensive S L . is respect and openness, to share a general 1 t understanding of whom our stakeholders e understanding of our position throughout n are, what their expectations are, and how a project or program’s life cycle. ExxonMobil they relate to us. Engagement 4 Process .
I Incorporate n Discuss c o We act on our engagement commitments r s Through interactive dialogue, we develop p s and incorporate them as appropriate into o u an action plan to address the issues that ra c te is our operations. 3. D are identified.
Using stakeholder dialogue Addressing environmental Responding to outcomes to improve challenges in the United community expectations corporate governance Arab Emirates in Thailand We engage with institutional and individual In the United Arab Emirates, population As part of any major new project, we con- shareholders, socially responsible investors, growth and accelerated economic develop- duct Environmental, Socioeconomic, and and pension funds to discuss our perfor- ment are leading to a rapid increase in Health Impact Assessments (ESHIAs) to mance and approach to corporate gover- energy consumption. While the country’s address possible environmental, socioeco- nance. Over time, the following policies and per capita energy consumption and green- nomic, and health concerns. In Thailand, practices evolved through engagement: house gas (GHG) emissions rates remain we coordinated site visits with the leaders among the highest in the world, leaders are of 22 communities within a 5-kilometer • Adopted a Confidential Voting Policy; taking a proactive approach to addressing radius of our project to understand their • Implemented Director Resignation future energy challenges. In partnership concerns. We held additional sessions with Guidelines in support of majority vote with ExxonMobil and others, the Abu Dhabi the 10 communities closest to the project. principles; National Oil Company has greatly reduced Feedback indicated that the communi- gas flaring and has reduced GHG emissions • Approved policies against “Poison Pills” ties have two basic expectations: 1) to be per barrel produced to among the lowest (i.e., strategies to make a hostile takeover informed about environmental planning, in the industry. of the company prohibitively expensive); monitoring results, project activities, and In consultation with local businesses, com- progress and 2) to improve their economic • Adopted a policy against option re-pricing; munity groups, and government leaders, circumstances through skills development. • Enhanced Incentive Pay Recoupment ExxonMobil identified energy efficiency We are addressing these issues through Guidelines; improvements as a significant opportunity. an integrated external affairs plan for 2009, Encouraged by positive stakeholder feed- • Established procedures, for public use, to which includes a quarterly newsletter for back, we established a partnership with the communicate with independent directors; local communities, annual site visits, opinion Emirates Foundation, a leading philanthropic surveys, and participation in community • Enhanced the role of the Presiding organization in the United Arab Emirates. activities. Through our Educating Women and Director; We committed $5 million over three years, Girls Initiative (see page 38), we are exploring with a particular focus on the Foundation’s • Improved our Compensation Discussion options to develop skills training centers as environmental programs. ExxonMobil will and Analysis disclosure in the proxy; and, well as other community investment projects serve on the Foundation’s Environment as part of our national content development • Conducted conference calls in 2008 to Program Council and is collaborating on strategy (see page 34). Our engagement engage on environment, human rights, a major project to improve the country’s efforts have enhanced the relationship be- and corporate governance. energy conservation and efficiency. tween project managers and the community.
2008 Corporate Citizenship Report 9 Materiality analysis process
1. 2. 3. 4. 5. 6. Identify Identify Cross-reference Assess Review Develop issues of concern issues of concern issues with priority issues by senior Corporate to ExxonMobil to external international management Citizenship Report stakeholders reporting content standards
Performance Data To ensure that the data provided in our Issues and performance data table is relevant, we selected indicators based on guidance provided by the International Petroleum Industry Environmental Conservation Association and cross-referenced against Indicators the Global Reporting Initiative (GRI) G3 Guidelines. Determining and reviewing material issues
up close: A critical step in publishing this External Assessment Panel Profi le of panelists report is ensuring that the content In 2008, we established our fi rst independent accurately refl ects the most current External Assessment Panel to serve an advi- Amy Augustine and emerging topics of relevance to sory role in ExxonMobil’s reporting process. Manager, Diversity and our company and to our industry. The panelists provided feedback on what we International Labor Relations Therefore, the report must focus on our most did well and areas for future improvement. The Calvert Group, Ltd. signifi cant or material issues. As such, material 2008 panel consisted of four members, each issues are those that may have a signifi cant with recognized expertise in nonfi nancial re- current or potential impact on our company porting and/or our corporate citizenship focus and expand beyond purely fi nancial issues. areas. Panelists were external to ExxonMobil Elizabeth McGeveran and conducted an independent and impartial Senior Vice President, Materiality analysis review of the materiality analysis process and Governance and Sustainable Investment To identify the social, economic, and environ- draft 2008 Corporate Citizenship Report. F&C Management Limited mental challenges, opportunities, and issues Panelists gave input on ExxonMobil’s report- of particular concern to our stakeholders, ing process via two conference calls and a we utilize a materiality analysis. This analysis Richard Newell half-day, face-to-face meeting where they combines external engagement and internal Professor, Nicholas School of offered page-by-page feedback on a draft strategic alignment to help us prioritize the the Environment, Fuqua School version of the report. For a complete sum- content of our Corporate Citizenship Report of Business mary of the panel’s feedback, please see our and ensures that the report is useful to readers. Duke University Web site. This process also promotes internal under- standing of corporate citizenship and Tim Smith sustainability issues, and shapes our ongo- Director, Senior Vice President, ing approach by aligning high-priority issues Environment, Social, and Governance Group with our business strategies. We discuss Walden Asset Management these material issues within the context of ExxonMobil operations specifi cally. on the Web:
Materiality analysis exxonmobil.com/analysis Panel feedback exxonmobil.com/panelfeedback
10 exxonmobil.com Business highlights data 2005 2006 2007 2008 Company Profile Net income, billions of dollars 36.1 39.5 40.6 45.2 1 Sales and other operating revenue, billions of dollars 359 365 390 460 Net liquids production, millions of barrels per day 2.5 2.7 2.6 2.4 Natural gas production available for sale, billions of cubic feet per day 9.3 9.3 9.4 9.1 2 Oil-equivalent production, millions of oil-equivalent barrels per day 4.1 4.2 4.2 3.9 Refinery throughput, millions of barrels per day 5.7 5.6 5.6 5.4 Petroleum product sales, millions of barrels per day 7.5 7. 2 7.1 6.8 Chemical prime product sales, millions of metric tons 26.8 27.4 27.5 25.0 3 Taxes to governments, billions of dollars 99 101 106 116 Benefits to employees, billions of dollars (wages, salaries, pensions, and other benefits) 12 12 13 13 Spending with suppliers, billions of dollars 211 212 230 286 Long-term debt at year end, billions of dollars 6.2 6.6 7. 2 7.0 Total assets at year end, billions of dollars 208 219 242 228
Citizenship performance data Interpretation: An interpretation indication is provided where we consider the performance trend to be generally desirable ( • ), undesirable ( • ), or mixed ( • ) by ExxonMobil. No interpretation is provided if not applicable. 2005 2006 2007 2008 Interpretation Corporate Governance Capital and exploration expenditures, billions of dollars 18 20 21 26 4 Distributions to shareholders, billions of dollars 23 33 36 40 5 Corporate political contributions—U.S. state campaigns and national 527s, millions of dollars 0.34 0.41 0.27 0.45 6 Number of regular employees at year end, thousands 84 82 81 80 Percent women—global workforce (excluding company-operated retail stores) 23 24 25 25 • Safety and Health Fatalities—employees 3 3 0 0 • Fatalities—contractors 5 7 8 5 • 7 Lost-time incident rate—employees (per 200,000 work hours) 0.069 0.049 0.031 0.047 • 7 Lost-time incident rate—contractors (per 200,000 work hours) 0.054 0.052 0.065 0.050 • 7 Lost-time incident rate—total workforce (per 200,000 work hours) 0.061 0.051 0.047 0.048 • 7 Total recordable incident rate—employees (per 200,000 work hours) 0.39 0.33 0.33 0.35 • Total recordable incident rate—contractors (per 200,000 work hours) 0.45 0.43 0.43 0.49 • 7 Total recordable incident rate—total workforce (per 200,000 work hours) 0.42 0.38 0.38 0.42 • Environmental Performance Marine vessel spills (owned/operated and long-term leased), number of hydrocarbon spills > 1 barrel 0 0 0 0 • Other spills (not from marine vessels), number of oil, chemical, and drilling fluid spills > 1 barrel 370 295 252 211 • Hydrocarbons spilled, thousands of barrels 12 40 8 20 • Controlled hydrocarbon discharges to water, thousands of metric tons 2.0 1.9 1.7 1.8 • Sulfur dioxide (SO2) emitted, millions of metric tons 0.25 0.24 0.21 0.19 • Nitrogen oxides (NOx) emitted, millions of metric tons 0.16 0.16 0.15 0.14 • Volatile organic compounds (VOCs) emitted, millions of metric tons 0.36 0.31 0.29 0.26 • VOCs emitted, metric tons per 100 metric tons of throughput or production Upstream 0.084 0.071 0.073 0.071 • Refining 0.018 0.016 0.015 0.013 • Chemical 0.049 0.043 0.039 0.043 • 8 Total hazardous waste disposed, thousands of metric tons 297 246 168 339 • Environmental expenditures, billions of dollars 3.3 3.2 3.8 5.2 Managing Climate Change Risks Greenhouse gas emissions, absolute (direct equity, CO2-equivalent emissions), millions of metric tons 138 146 141 131 • Greenhouse gas emissions, normalized (direct equity, CO2-equivalent emissions, excluding cogeneration and Hong Kong power), metric tons per 100 metric tons of throughput or production Upstream 21.2 22.5 21.3 19.0 • Downstream 17.3 17.6 17.4 17.0 • Chemical 44.3 43.9 41.6 42.2 • Energy intensity, normalized versus Global Energy Management System (GEMS) base year (2000)—refining 93.8 93.9 93.2 93.4 • Energy intensity, normalized versus GEMS base year (2001)—chemical steam cracking 92.2 91.6 90.6 91.3 • Cogeneration capacity in which we have interest, gigawatts 4.3 4.3 4.5 4.6 • Hydrocarbon flaring (worldwide activities), millions of metric tons 7.7 8.2 8.1 5.7 • Economic Development Percent of workforce—non-U.S. 63 63 63 63 Percent new professional hires—non-U.S. 73 72 71 69 Community investments, millions of dollars 167.6 170.0 206.6 225.2 • United States 112.7 109.1 124.1 144.6 Rest of world 54.9 60.9 82.5 80.6 7, 9 Number of countries with transparency agreements 4 6 6 8 • Human Rights and Security 10 Percent of private security contracts with enhanced language N/A N/A N/A 50+ • 10 Number of affiliates receiving dedicated human rights awareness training N/A N/A N/A 7 •
1 Sales and other operating revenue includes purchases /sales contracts with the same counterparty in 2005. 6 Regular employees are defined as active executive, management, professional, technical, and wage employees 2 Gas converted to oil-equivalent at 6 billion cubic feet = 1 million barrels. who work full-time or part-time for ExxonMobil, and are covered by ExxonMobil’s benefit plans and programs. 7 3 Income, sales-based, and other taxes and duties. Historical data was updated to reflect improved information. 8 4 Cash dividends to ExxonMobil shareholders and share purchases to reduce shares outstanding. For a description of changes in hazardous waste classification, see page 27. 9 5 2007 data was corrected to reflect contributions to both U.S. state campaigns and national 527s. In countries where ExxonMobil has an Upstream business presence. 10 Data first reported in 2008.
2008 Corporate Citizenship Report 11 Worldwide Economics and Energy Population Gross Domestic Energy Demand (billions of people) Product (millions of (trillions of dollars, oil-equivalent 2005 dollars) barrels per day)
Annual Growth Annual Growth Annual Growth 2005–2030 Average 0.9% 2005–2030 Average 3.0% 2005–2030 Average 1.2% 8 100 350
4 50 175
1980 2005 2030 1980 2005 2030 1980 2005 2030 A View to 2030 Outlook for Energy
Energy—in all its forms—is critical Despite current economic conditions, global projected to increase 75 percent by 2030 ver- to economic growth, development, economic output, as measured by Gross sus 2005. To meet this need, energy for power and social welfare. We are faced with the Domestic Product (GDP), is expected to generation will remain the largest and fastest challenge of meeting the projected increase increase by an average of 3 percent annually growing segment of global demand, driven in in energy demand to support growing popu- through 2030. large part by strong growth in Asia Pacific. lations and expanding economies while also Importantly, the global economy is becoming Global energy in perspective protecting the environment and reducing more energy efficient. From 1980 to 2005, Viewed globally, it is clear that the world’s greenhouse gas emissions. Addressing energy intensity—the amount of energy used energy mix is highly diverse. Today, oil, natural these challenges effectively requires a multi- per unit of economic output—improved by gas, and coal provide approximately 80 per- dimensional approach and an integrated set 1 percent per year on average. Going forward, cent of world energy. Our Outlook projects of solutions. we anticipate the rate of improvement will that by 2030, oil will remain the largest source be 70 percent faster than in the past. To help us prepare for the future energy mar- of energy supply at approximately 35 percent. ketplace, each year ExxonMobil develops The Even with substantial efficiency gains, we Natural gas will grow the fastest of the fossil Outlook for Energy—a broad, in-depth look expect that by 2030 global energy demand fuels and will overtake coal as the second at the long-term global trends for energy de- will be 35 percent higher than it was in 2005. largest energy source, accounting for nearly mand and supply and their impact on carbon The vast majority of this increase will occur in 25 percent. dioxide (CO2) emissions. The results of this developing countries where populations and Nuclear power will increase significantly, comprehensive study provide a foundation economic output are growing most rapidly. for ExxonMobil’s business planning and are surpassing coal in terms of absolute growth shared publicly to help build understanding Much of the increase in energy demand will and becoming the fourth largest fuel source. of the world’s energy needs and challenges. be driven by growing transportation needs. Hydro and geothermal will also grow, but Moving people and goods across town, they are limited by the availability of natural The link between economic across countries, and around the world sites. We expect wind, solar, and biofuels growth and energy requires tremendous amounts of energy, and to increase at about 9 percent per year on that will not change in the foreseeable future. average, the highest growth rate of all fuels. Today, the world uses approximately 245 mil- While we expect dramatic efficiency gains, lion barrels of oil-equivalent energy per day In developing this Outlook, we anticipate energy demand for transportation will likely to fuel transportation, run farms and factories, significant efficiency improvements over time. increase by 40 percent from 2005 to 2030. power schools and businesses, heat and cool Compared to 2005 energy intensity levels, homes, and enable improved living standards. Energy needs for power generation will also these improvements translate to energy sav- Energy and economic growth have long been rise significantly. Electricity is something many ings of approximately 170 million oil-equivalent entwined: the availability of energy supports take for granted, yet around 1.5 billion people barrels per day by 2030—about double the long-term economic and social development; still do not have access to reliable electricity corresponding growth in demand. Achieving and economic growth drives increased supplies. As economies grow and access these gains will be critical to helping meet energy usage. increases, global demand for electricity is global energy challenges.
12 exxonmobil.com Growth in Global Energy Demand CO2 Outlook by Region (millions of oil-equivalent barrels per day) (billions of metric tons CO2 per year) 2005 Demand 2030 Demand United States European UnionChina Energy Source: Oil Gas Coal Nuclear Biomass and Other Hydro and Geothermal Wind, Solar, and Biofuels Annual Growth Annual Growth Annual Growth 2005–2030 Average -0.6% 2005–2030 Average -0.6% 2005–2030 Average 2.1% 200 10 10 10
0.9% Annual Growth Annual Growth 2005–2030 Average 1.2% 100 1.8% 5 5 5 0.6%
2.3% 0.3% 2.2% 9.3%
Energy Source Energy Savings Due to Efficiencies 1980 2005 2030 1980 2005 2030 1980 2005 2030
35% 28% +1 ~80% 100 % increase growth billion of global energy increase in energy demand in global energy-related in global needs through likely in global from 2005 to 2030, CO2 emissions likely from population growth 2030 will continue economic output despite substantial 2005 to 2030, even as by 2030 to be met by from 2005 to 2030, energy savings developed countries’ emis- oil, natural gas, led by developing from efficiencies sions plateau and decline and coal countries
up close: Alternative sources of energy are evolving. Growing energy demand and Factors such as technology, costs, and avail- carbon dioxide emissions Taking on the world’s ability will continue to shape the composition toughest energy challenges of the world’s energy supplies over time. The outlook for energy-related CO2 emissions This Outlook for Energy makes clear that Given the tremendous scale of the energy is linked directly to projections of the amount the world’s energy challenges are for- marketplace, major shifts in the types of and type of energy required globally. While the midable. We believe that meeting these energy used around the world require ongo- United States and other developed countries global energy challenges requires an ing advances in technology and substantial will be reducing emissions, the economic integrated set of solutions that includes: investments over decades. growth and associated energy needs of developing countries will drive global CO2 • Moderating demand through new tech- To help ensure reliable and affordable supplies levels higher. This highlights a key challenge nologies that improve energy efficiency to meet growing needs, all economically viable ahead for the world—how to continue to in our vehicles, homes, and businesses; sources of energy should be pursued. For provide the energy necessary to bring billions example, unconventional oil and natural gas of people up the economic ladder while • Expanding access to all economically resources are expected to contribute more mitigating the growth of CO2 emissions. viable energy sources—oil, natural gas, significantly to global supplies over time. coal, nuclear, and alternative and renew- Technology is more important than ever, since Breakthrough technologies—including some able sources; and, a significant portion of the world’s oil and gas pioneered by ExxonMobil—have helped keep • Mitigating the risks of climate change resources are located in challenging environ- pace with rising global energy demand by through technologies that advance ments that require innovative approaches to making more energy supplies available while energy efficiency and provide energy energy production. Advances in technology also reducing the environmental footprint of with lower CO2 emissions. are also spurring development of a global energy development. We continue to actively market for liquefied natural gas, which is support the development of advanced Looking to 2030 and beyond, we realize expected to more than triple in volume from technologies to promote all viable sources that the scale of our global challenge is 2005 to 2030. of energy, improve energy efficiency, and enormous, but so too is our commitment mitigate CO2 emissions. to succeed and our capacity to innovate. To expand energy options for the future, We are confident that by pursuing an ExxonMobil is actively supporting research integrated set of solutions—while work- in a number of areas, both internally and ing with governments to create reliable through partnerships with universities. policy and investment environments Research areas include hydrogen fuel cell for these solutions to thrive—the world technology, photovoltaic solar cells, and on the Web: can achieve both energy and environ- biomass conversion. mental security to support growing The Outlook for Energy economic prosperity. exxonmobil.com/energyoutlook
2008 Corporate Citizenship Report 13 2008 ExxonMobil Board of Directors Corporate Governance Managing with standards and systems
Good governance—both by the values are embedded in our Standards of In 2008, total shareholder distributions were public and private sector—is Business Conduct, which govern how we $40 billion, including $32 billion in share essential for creating an economic operate around the world. purchases. For more than 100 years, the Corporation has paid dividends. Annual climate that is conducive to large- Long-term fi nancial scale investments, leading to the dividend payments per share have increased resource management in each of the past 26 years—by 13 percent long-term sustainability of business. It is our responsibility to help meet the world’s in 2008 and 58 percent since 2003. At ExxonMobil, our disciplined approach and growing energy needs while providing long-standing history of leadership in corpo- Reserves replacement. In 2008, our world- competitively priced supplies to our custom- rate governance are critical to our success. wide proved oil and gas reserves totaled nearly ers and delivering value to our shareholders. We comply with all applicable laws and regu- 23 billion oil-equivalent barrels or 15 years Our investment decisions have impacts that lations, and where laws and regulations do not of reserve life at current production levels. resonate for decades and, therefore, we do exist, we operate using the highest industry Reserve replacement totaled 103 percent of not base our long-term investment strategy standards in all aspects of our business. production. Our fi ve-year average replacement on short-term trends in commodity prices. ratio is 110 percent. Management systems In 2008, we continued investing at record levels—more than $26 billion for the year Our commitment to high ethical standards is Board of Directors —and we expect to spend more than implemented through our global policies and As of year end 2008, 10 of the 11 directors on $125 billion over the next fi ve years. practices—in every aspect of our business, at our Board were independent as defi ned by every location where we operate. Corporate ExxonMobil has a development portfolio of New York Stock Exchange guidelines, and citizenship at ExxonMobil is integrated in the more than 120 projects expected to produce all directors stand for election at our Annual 16 policies that make up our Standards of over 24 billion oil-equivalent barrels (net) during Meeting of Shareholders. In 2008, the Board Business Conduct. We ensure long-term sus- their lifetime. We participated in eight major up- of Directors met 10 times, and our Audit, tainable performance through our management stream project start-ups in 2008, with another Board Affairs, Compensation, and Public systems, which include System of Management nine anticipated in 2009. At peak production, Issues and Contributions Committees each Control Basic Standards, Controls Integrity these 2009 projects are expected to add over met between four and 11 times. The Board Management System (CIMS), Operations 485 thousand oil-equivalent barrels per day (net). evaluates its performance and effectiveness Integrity Management System (OIMS), and on an annual basis. Creating shareholder value. Disciplined capital Best Practices in External Affairs (BPEA). investment, operational excellence, and a long- Corporate citizenship topics are generally ExxonMobil supports the ideals of the United term, consistent industry perspective allow overseen by the Board Affairs, Compensation, Nations Global Compact in the areas of us to achieve our goal of delivering superior and Public Issues and Contributions human rights, labor standards, the environ- shareholder value. This approach has consis- Committees. In 2008, key topics reviewed ment, and anti-corruption. While we are not tently resulted in stock performance that out- by the committees included: a signatory of the Global Compact, its basic paced the Standard & Poor’s 500 Index during the previous 5-, 10-, and 20-year periods.
14 exxonmobil.com Priority issues
Responsible Operations. Ensure that Strategy Development. Incorporate OIMS Case Study. Conduct safe, secure, corporate governance practices effectively corporate citizenship issues into business and incident-free operations on Sakhalin manage enterprise risks and opportunities, strategy and communicate these initiatives Island, Russia. and support superior returns across the to interested stakeholders. business lines.
25% 10 of 10 98% $26 110 % of workforce rating above billion of production worldwide by GovernanceMetrics others in energy in capital and replaced is composed International, group for corporate exploration on average over of women among top 1 percent governance, as rated expenditures, last five years of companies rated by RiskMetrics Group a record level
up close: • Audit Committee: Reviewed our risk man- corporate policy to management. Employees agement process, the annual independent are required to annually confirm that they Executive compensation audit findings, and audit and controls perfor- have read and are familiar with the policies set At ExxonMobil, the most senior mance, and appointed independent auditors, forth in our Standards of Business Conduct, executives—including the CEO, named subject to shareholder ratification. which include a Code of Ethics and Business executive officers, and 1200 other U.S. Conduct to prevent bribery and corruption • Board Affairs Committee: Recommended executives—participate in a common (for information on our transparency initiatives, director candidates and reviewed indepen- compensation program. see page 41). Detailed training is provided dent director compensation and other to all employees on a regular basis to ensure Compensation is designed to fully corporate governance practices. they understand company expectations. support our long-term business model • Compensation Committee: Oversaw and to contribute to shareholder value. Internal audits. On average, our internal compensation for executive officers and other A significant portion of executive com- audit department conducts annual audits senior executives (about 25 positions), includ- pensation is at risk of forfeiture if the of one-third of corporate operating units ing salary, bonus, incentive awards, and executive leaves before standard retire- and business activities (including preparation succession plans for key executive positions. ment age, which reinforces the career of the 2007 Corporate Citizenship Report). orientation of the company. Executives • Public Issues and Contributions Committee: Approximately 250 specially trained internal do not have employment contracts, sev- Reviewed our safety, health, and environmen- auditors have unrestricted access to all facili- erance agreements, or change-in-control tal performance as well as latest trends and ties, business units, personnel, and records arrangements, which further strengthens developments in climate science and other and are empowered to investigate all potential the at-risk principle of the executive public policy issues. noncompliances with ExxonMobil’s Standards compensation program. of Business Conduct. Communicating with directors. ExxonMobil’s Compensation decisions are evaluated directors welcome and encourage commu- Reporting and investigating suspected over multiple-year periods and are nications with our shareholders. On average, violations. Suspected violations are identified subject to company performance. Key 10 letters are received per month and re- through internal control procedures, supervi- criteria include a range of factors such sponded to as appropriate. Interested persons sory reviews, hotline calls, and employee or as net income; safety, health, and may send e-mails directly to non-employee third-party tips. A Hotline Steering Committee, environmental performance; and effec- directors of the Corporation from the corporate comprising security, audit, law, and human tive actions that support the long-term, governance page of our Web site. Additional resources personnel, handles suspected strategic direction of the company. instruction is provided in the proxy statement. violations and provides a report to the Audit Committee on a quarterly basis. Ethics Internal auditors and management investigate ExxonMobil expects employees to adhere to suspected violations of law, business practices, all company policies and to be responsible for or internal control procedures. Violations by reporting suspected violations of the law or
2008 Corporate Citizenship Report 15 Cumulative Distributions to Shareholders 2008 Percent of Women and Minorities 2008 Female Management and Professional (over past five years) by Position in the United States New Hires by Geographic Region (billions of dollars) Based on U.S. Equal Employment Opportunity Commission reporting Dividends Officials and Managers Professionals Share Purchases (to reduce shares outstanding) Total Employees Latin America United States 221 335 150 40
Canada Total Europe 73 1440 190
75 20 Africa/ Asia Pacific Middle East 567 54
04 05 06 07 08 Women Minorities
ty Ma tegri nag In em ls en ro t t S Our Standards n y Our Controls Integrity Management o s C t e of Business Conduct m System and Operations Integrity provide each employee with Management System Standards guidelines on ethics, conflicts form the framework by which we of Business of interest, nondiscrimination, Conduct manage safe, reliable, environmentally O and harassment in p responsible, and ethical operations e r the workplace. a globally as well as corporate ti o m n e s st citizenship issues. In y te t S gri en ty Managem
employees lead to disciplinary actions up to, and gender identity. Each affiliate has identify and develop leadership capabilities of and including, separation from the company. adopted ExxonMobil’s global standards, employees to perform effectively in a variety Significant matters are reported to the Audit with modifications as required for compliance of environments. Committee of the Board of Directors. The with country law. ExxonMobil is committed to promoting Board makes no exception for cases involving Employee benefits and programs. We leadership opportunities for women glob- an executive officer or director. provide all employees with a competitive ally and improving the gender balance in Employment policies package of benefits and programs, which our company. Currently, women comprise and practices varies based on the legal requirements and about 25 percent of our worldwide workforce, culture of each country in which we operate. excluding company-operated retail stores. ExxonMobil strives to create a work environ- Benefit coverage for spouses is based on Approximately 12 percent of executive em- ment that is safe and rewarding for each legally recognized spousal relationships in the ployees are women, compared to 9 percent of our approximately 80,000 people—our individual countries where we operate. In the in 2000. We are also working to increase the success as a company depends on their indi- United States, we have adopted the definition representation of minorities, including African- vidual contributions. To retain and recruit the of spouse used in federal law, which provides Americans, Hispanics, Asians, and Native most talented people, we provide employees benefits to heterosexual couples. Employees Americans in our U.S. operations. Based with numerous opportunities for development, in countries where national law recognizes on U.S. Equal Employment Opportunity interaction with senior management, and same-sex relationships are provided spousal Commission reporting, minorities made up open-door communications. benefits under the ExxonMobil programs. approximately one-third of our U.S. work- Our employment practices are governed by force and about 20 percent of officials and We take seriously all our benefit plan commit- our Standards of Business Conduct, which managers in 2008. ments. The funding levels of all qualified pen- support our commitment to equal employ- sion plans are in compliance with standards ExxonMobil has long supported diversity ment opportunity, prohibit harassment and set by applicable law or regulation. All defined networks that provide career development discrimination in the workplace, and are con- benefit pension obligations are fully supported information, act as an advisory group to sistent with applicable laws and regulations by the financial strength of the Corporation or management, build cultural awareness, and of the countries in which we operate. the respective sponsoring affiliate. support community outreach for our diverse Policies against discrimination. ExxonMobil employees. Networks in the United States Diversity. ExxonMobil’s greatest strength is does not tolerate any form of discrimination or include the Asian Connection for Excellence the quality and diversity of our employees. harassment in the workplace. Our all-inclusive (ACE); Black Employee Success Team (BEST); We developed our Global Workforce Diversity global standards are intended to leave no Global Organization for the Advancement Framework to attract, develop, and retain doubt that discrimination and harassment for of Latinos (GOAL); People for Respect, a premier workforce; actively foster a work any reason are unacceptable, including Inclusion, and Diversity of Employees (PRIDE); environment where individual and cultural discrimination based on sexual orientation and Women’s Interest Network (WIN). differences are respected and valued; and
16 exxonmobil.com 2008 Workforce by Geographic Region* up close: *Data excludes company-operated retail store employees. Shareholder proposals Africa/Middle East 4271 and proxy statements Every year, ExxonMobil receives sug-
Canada United States gestions from shareholders on ways to 6883 29,829 improve the company. Management and Total Workforce the Board carefully consider these sug- 79,880 Asia Pacific gestions and, typically, seek a dialogue 15,171 with the proposal sponsor. This dialogue enables both parties to present their posi- Europe Latin America tions and often produces a satisfactory 19,185 4541 solution. When agreement is not reached, the proposal and the Boards’ response and recommendation are published in our proxy statement. Shareholders vote on each proposal at the Annual Shareholders’ meeting. The Board evaluates those pro- posals receiving significant support and acts as appropriate.
Example: Proposal to separate the posi- tions of Chairman of the Board and CEO.
Shareholder request: Amend bylaws to require that an independent director serve as Chairman of the Board and that the Chairman of the Board does not concur- rently serve as the CEO. Proponents argue that an independent Chairman would provide better governance through Political involvement Grassroots advocacy. Through our Citizen increased Board independence. Action Team (CAT), we encourage our ExxonMobil makes political contributions Board response: The Board believes that employees and retirees to communicate with to candidate committees, political parties, the decision as to who should serve as their elected officials as private citizens on associations, and other political organizations, Chairman and CEO, and whether the pending legislation and matters of personal as permitted by applicable laws in the United offices should be combined or separated, importance. In 2008, employees and retirees States and Canada, and as authorized by is the proper responsibility of the Board. used CAT e-tools to send over 28,000 mes- the Board of Directors. In 2008, Exxon Mobil The members of the Board possess sages to their elected officials. Additionally, Corporation contributed a total of $242,200 to considerable experience and unique more than 600 U.S.-based employees and legislative and gubernatorial candidates and knowledge of the challenges and oppor- 350 expatriates registered to vote through caucuses in 11 U.S. states. Information about tunities the Corporation faces. They are, the CAT Get Out the Vote initiative. our policy and guidelines in this area, and an therefore, in the best position to evalu- itemized list of all corporate political contribu- ate the current and future needs of the tions are available on our Web site. Corporation, and to judge how the on the Web: capabilities of the directors and senior In 2008, ExxonMobil’s employee-funded managers can be most effectively orga- political action committee disbursed Management systems and policies nized to meet those needs. At this time, $515,032, mostly to federal candidates. exxonmobil.com/managementsystems the most effective leadership structure ExxonMobil financials Political lobbying and advocacy. ExxonMobil for the Corporation is for Mr. Tillerson to exxonmobil.com/investor tracks proposed legislation and engages with serve as both Chairman and CEO. Corporate Governance Guidelines governments around the world to advocate The Board believes there is no single best exxonmobil.com/governance our position on policies that impact our op- organizational model that would be most erations. We actively lobby the U.S. Congress Proxy statements effective in all circumstances, and retains and state legislatures, and fully comply with exxonmobil.com/proxymaterials the authority to separate the positions of regulations by reporting all federal lobbying in U.S. employment diversity data Chairman and CEO if deemed appropriate quarterly disclosure reports to the Congress. exxonmobil.com/diversity in the future. In 2008, ExxonMobil incurred lobbying ex- Political action committee disbursements The Board made changes to the penses totaling $29 million under the Internal fec.gov Revenue Code 162(e) reporting definition, Corporate Governance Guidelines in Political contributions including direct and indirect expenses and 2008 to enhance the role of the Presiding exxonmobil.com/political overhead costs such as building rental and Director. The Presiding Director has the utilities. A complete list of federal issues Federal issues lobbied authority to call and chair executive (search “Exxon Mobil” as registrant lobbied by ExxonMobil in the United States sessions and provide feedback to the in the lobbying database) in 2008 can be found in the Public Disclosure Chairman, and also to chair Board meet- senate.gov section of the U.S. Senate Web site. ings in the absence of the Chairman.
2008 Corporate Citizenship Report 17 Case Study: Sakhalin Island, Russia OIMS in action ExxonMobil is committed to conducting business in a manner that protects human safety, security, health, and the environment wherever we operate. We have defined policies that enable responsible operations, and we put these into practice through our structured and rigorously applied Operations Integrity Management System (OIMS).
Global concern Our approach Nothing receives more attention than the • Improve operations reliability, manage risk, Russia safety, security, and health of our employees, and lower our operating costs contractors, customers, and the people • Establish common worldwide expectations who live and work in the areas where we for every operating unit Sakhalin Island operate. OIMS provides the discipline • Implement OIMS over the complete life and structure to enable safe, secure, and cycle of a project from exploration to develop- incident-free operations. ment and production to project completion • Ensure that management is continuously accountable for results
The Arctic, one very tough OIMS as a foundation risks of our facilities and operations. These place to work for success included plans to build double-hulled tankers to ship crude oil from the DeKastri terminal, Off Russia’s eastern coast, the Sakhalin-1 OIMS was implemented in 1992 to respond to escorted safely in the winter by two large Project encompasses the offshore Chayvo, opportunities for improvement in operations icebreakers equipped with the latest ice- Odoptu, and Arkutun-Dagi fields, with Chayvo integrity and to institute a broad safety and navigation technology. Leading-edge technol- already producing and the others in the environmental management framework glob- ogy was applied to drill extended-reach wells development phase. A pipeline across ally. Today, OIMS—consisting of 11 elements— from the shoreline to the Chayvo field, which Sakhalin Island and the Tatar Strait links the is embedded into everyday work processes allowed for horizontal drilling under the sea fields to the DeKastri tanker loading terminal at all levels of the global organization to floor and eliminated the need for a second in Khabarovsk Krai, on the Russian mainland. proactively manage risk. Over time, it has offshore platform while minimizing and in It is one of ExxonMobil’s first ventures in become a part of our culture and the way some cases eliminating environmental risks. Russia and is operated by our affiliate, our organization works, improving operations Exxon Neftegas Limited (ENL). reliability and lowering our operating costs. Environmental leadership. In order to develop an effective and successful environmental Recognized as one of the most technically When ENL first started exploration and plan, ENL engaged with federal, regional, challenging projects undertaken by the development on Sakhalin Island, the prin- and local regulators to establish a reputa- industry, the Sakhalin-1 Project presents some ciples of OIMS were embedded at project tion of respect, trust, and credibility among of the most extreme conditions in which we inception. The project included establishing Russian authorities. To address the concerns have ever worked. ENL faced harsh arctic plans and setting expectations for employees of Russian environmental protection agen- conditions, featuring five-foot-thick pack for managing all project risks, including those cies regarding potential impacts on salmon ice and earthquake activity, and worked in involving safety, security, health, and the populations, the 225-kilometer pipeline was a remote location with very little existing environment. When the project transitioned routed to reduce the number of stream cross- infrastructure. Despite these challenges, the to operations in 2006, processes were in place ings, which were carefully selected relative Sakhalin-1 Project progressed on schedule to ensure continuity in OIMS implementation. to salmon-spawning areas. Additionally, and within budget to accomplish what some During a 2008 OIMS assessment, ENL construction was scheduled during the winter initially doubted was even possible. In early demonstrated practical application of the months to minimize potential impacts due 2007, the project reached its targeted peak system and received one of the highest to sedimentation. production rate of 250 thousand barrels of oil ratings for a new affiliate. per day. This success is due to our employ- ENL has co-sponsored several studies since Leading-edge technology in the pursuit of ees’ commitment to excellence and integrity 1997 to better understand and protect the project excellence. With input from Russian that emphasizes safety, security, health, and critically endangered Western Gray Whale, research and design institutes, engineering environmental protection. which feeds in the shallow waters off Sakhalin design studies were conducted to reduce the Island. Plans for constructing a permanent safety, security, health, and environmental
18 exxonmobil.com Within two years of agreeing to assist with the update of the Okha Municipal District regional healthcare system, Exxon Neftegas Limited (ENL) provided the Okha Regional Medical Center with modern emergency medical care equipment, ranging from surgical tools to diagnostic equipment. Because no illness can be treated by equipment alone, ENL also arranged for healthcare professionals to be trained on how to utilize the equipment. For example, in 2008, a leading Russian surgeon conducted 14 demonstration operations and trained local physicians on a new endoscopic unit for video diagnostics and therapy.
jetty along the shoreline were modified in the We ensure that the workforce is provided Our community. ExxonMobil is committed to area used by the whales for feeding in the with proper training through our personnel supporting the communities of Sakhalin Island summer and early fall. safety and occupational health programs. As and Khabarovsk Krai by investing in commu- a result, by the end of 2008, the construction nity infrastructure projects such as hospitals, Additionally, conservation measures to protect project had achieved a lost-time incident rate roads, bridges, airports, and seaport facilities; the endangered Steller’s Sea Eagle (Orlan) that was five times better than the worldwide power, water, and sanitation upgrades; and populations included restricted buffer zones average for the oil and gas construction supporting education, health care, and cul- near nests to minimize disturbance to the industry. This safety excellence continued tural projects in the region. eagles, and construction of artificial nests and during the operations phase with no lost-time perches to attract the birds to new coastal incidents in 2008. By early 2009, employees Success in a new frontier sites away from project facilities. will have worked over 80 million hours with As an integral part of OIMS, procedures, Building a local workforce. ExxonMobil and industry-leading safety performance. site standards, facilities, and personnel are its affiliates seek to hire, train, and develop a continuously evaluated to ensure that the Ensuring safety among our contract local workforce to meet business needs. The Sakhalin-1 Project and operations are workers. Management and safety profes- personnel selection, training, and competency executed with integrity and in accordance sionals have also worked hard to help the verification of our technical and professional with the highest industry standards. This contractor workforce develop and enhance employees and contractors on Sakhalin helps maintain the support and strong rela- their capabilities to perform in a manner that Island greatly contributed to the success of tionships that have been established over is consistent with our safety, security, health, the project. Russian technician trainees went the years with local residents and the federal, and environmental policies and expectations. through a rigorous two-year training program regional, and local government authorities. The management team acts as safety cham- that began with an intensive English language pions, who work to bring the entire team—not In 2008, the Sakhalin-1 Project was recognized program and concluded with job-specific just safety and environmental professionals— with the prestigious Award for Excellence advanced training in North America. In 2008, into the process. This involves observing in Project Integration at the International 47 trainees graduated and were hired from the safety practices in the workplace, helping Petroleum Technology Conference, in locally operated Sakhalin Technical Training contract personnel correct potentially hazard- particular for its construction and facilities Center. More than 500 nationals work directly ous practices, and providing remedial training engineering practices; safety, health, and for ENL, and 75 percent of our total workforce for worker safety. An annual Contractor Safety environmental processes; human resources in Russia is national. For more information on Forum held in Yuzhno-Sakhalinsk helped policies; community programs; and overall national content development, see page 34. maintain alignment of our contractors with project teamwork. Safety excellence. On Sakhalin Island, ExxonMobil’s objectives and expectations, personnel know that safety is a way of life and provided them with various safety and and not just a message on a bulletin board. environmental management tools.
2008 Corporate Citizenship Report 19 “A healthy workforce is part of the foundation for operational success.” Clarion Johnson, M.D. Medical Director, Global Medical and Occupational Health Safety and Health Working toward an incident-free workplace
At ExxonMobil, excellence in safety mitigated, critical procedures are developed, Process safety. Safety standards and and health in the workplace is a and workforce responsibilities are defined. procedures are incorporated in our facility design, construction, and start-up activities. core value. A healthy workforce is a neces- Workforce safety. We lead the industry with Our quality assurance processes verify that sary foundation for economic growth and our low incident rates for work-related injuries materials received meet design specifications critical to achieving our business objectives and illnesses. Based on analysis of incidents and that construction is in accordance with wherever we operate. By conducting opera- and risks, we continuously work to improve applicable standards. tions in ways that safeguard our workforce the safety and health of our employees and and the surrounding public from unacceptable contractors. Since 2000, we have reduced our Working with the American Petroleum risk, we enhance the economic and social workforce lost-time incident rate by an aver- Institute, we are contributing to the develop- benefits to communities. age of over 12 percent per year. ment of common industry metrics for process safety for the refining and petrochemical Tragically, however, we experienced five con- Safety and health management industries. By enhancing measurement in this tractor fatalities in 2008. Our challenge is to Our vision is that Nobody Gets Hurt. To achieve area, we expect industry will further improve learn from every incident so we can achieve this goal, all employees and contractors must safety performance. our vision of Nobody Gets Hurt. accept responsibility and accountability for To help ensure compliance with applicable safe performance on the job. Effective safety, As part of our effort to achieve this vision, our regulations, we have structured inspection health, and environmental leadership behaviors employees and contractors receive rigorous and maintenance programs, regular testing are essential. We are incorporating advanced training before commencing work in our facili- of integrity-critical equipment, and strict leadership concepts into our management ties. They participate in safety teams, conduct procedures to maintain safe operations. systems and training, and enhancing core safety observations, and suggest ongoing Additionally, we apply advanced technologies career development tools and processes so improvements in safety procedures. In 2008, in many of our manufacturing facilities to everyone in our workforce can be a safety, more than 1600 of our contractor supervisors alert operators to investigate potentially health, and environmental leader. and managers participated in leadership abnormal operating events. workshops conducted by ExxonMobil The company-wide Operations Integrity Development Company, an increase of more The primary objectives Management System (OIMS) is our primary Workplace security. than 20 percent since 2007. of our security programs are the safety and tool for managing personnel and process security of all employees and contractors. In safety as well as workforce health. Lloyd’s In addition, during 2008, we continued to 2008, we made additional progress toward Register Quality Assurance has recognized emphasize hazard recognition and reduced achieving these objectives, through continua- OIMS as meeting all requirements of the risk tolerance in our workforce by promot- tion of the campaign to reinforce that Security international occupational health and safety ing the effective use of tools like Last Minute is Everybody’s Business, including awareness management system specification (OHSAS Risk Assessments. Ongoing training helps to programs and training of site personnel on 18001:2007). Through OIMS, work processes address “risk tolerant behavior” and improve are clearly described, risks are identified and hazard recognition skills.
20 exxonmobil.com Priority issues
Workforce Safety. Protect the safety and Workplace Health. Address employee and Hurricane Preparedness Case Study. security of our employees, contractors, community health risks through workplace Respond to natural disasters in a way that customers, and the public by implement- malaria control, HIV/AIDS prevention protects the safety and health of our work- ing policies to manage personnel and programs, and strategic management of force, their families, and communities while process safety and workplace security. emerging health issues. reducing potential environmental impacts.
% 28 HIV/AIDS % 12 awareness 425 0 20 reduction thousand cases increase events and in lost-time training Material Safety of malaria in contractor supervisor incident rate on Data Sheets recorded among safety leadership average, each year sessions held distributed to nonimmune expatriate workshop participation since 2000 in Angola customers employees from 2007
various security program elements. Further Workplace health planning, we play a role in addressing the integration of security into existing processes broader economic and social development We believe that a successful business relies such as OIMS continued as well. of the communities in which we operate (see on a healthy workforce—and we take national content development on page 34). Efforts to strengthen our facilities are well seriously those health issues that impact underway. Sound physical security is a our workforce—whether work-related or not. For example, Papua New Guinea has limited cornerstone of our security program. In the We identify health risks related to our opera- public health reporting systems, making United States, Department of Homeland tions so that we can implement programs understanding the full scope of disease Security regulations are being implemented to control such risks. In 2008, we developed particularly challenging. In response, we at affected sites, including the Transportation and launched OIMS for Office Personnel, conducted health impact assessments and Worker Identification Credential Program and which includes a globally consistent office launched disease prevalence surveys to Chemical Facility Anti-Terrorism Standards. ergonomics template to assess proper office determine the scope of disease to which configuration as well as observation tools our workforce may be exposed. Improvements in the reporting and analysis of for behavior-based safety. We expect these security metrics will help us drive additional Workplace Malaria Control Program. enhancements will help us improve injury and security enhancements through the next year ExxonMobil’s comprehensive Malaria Control illness rates related to ergonomic factors. and beyond. For more information about Program covers both employees and con- security at ExxonMobil, see page 42. Strategic health management. ExxonMobil tractors working in malaria-prone areas. The maintains an active commitment to the program combats malaria through awareness, Risk management and emergency communities in which we work. We believe mosquito bite prevention, anti-malaria medi- preparedness. Risks associated with safety, that self-sustaining improvements in public cation, and early diagnosis and treatment. security, health, and the environment are health are a key enabler for broader economic Since 2005, we have recorded no cases of inherent in the energy and petrochemical busi- and social gains. In developing countries, malaria among our (nonimmune) expatriate ness. Recognizing these risks, ExxonMobil ExxonMobil employs a strategic management employees, and there were no reported takes a disciplined and systematic approach approach to track employee health and to cases of serious malaria among our national to business continuity planning and emergency develop prevention programs and healthcare (semi-immune) employees. As our contractors preparedness (see page 23). To strengthen our services to respond to emerging health issues adopt controls similar to our own, their rates capability to respond quickly and effectively in a timely manner. of malaria continue to drop, with only six to operational incidents, we routinely test recorded malaria cases among nonimmune the trained teams at our operating sites on a Our Environmental, Socioeconomic, and contract personnel in 2008. range of possible scenarios. These scenarios Health Impact Assessment (ESHIA) process include responding to simulated product helps us identify opportunities for address- Employee StopAIDS. Now in its fifth year, our spills, fires, explosions, natural disasters, ing potential health impacts associated with comprehensive workplace HIV/AIDS program, and security incidents. our projects. By incorporating workforce and StopAIDS, combines risk mitigation education community health considerations into project with access to community-based care and
2008 Corporate Citizenship Report 21 up close: Total Recordable Incident Rate Lost-Time Incident Rate (incidents per 200,000 work hours) (incidents per 200,000 work hours) Landmark U.S. health study ExxonMobil Employees ExxonMobil Contractors ExxonMobil Employees ExxonMobil Contractors API U.S. Petroleum Industry Employee Benchmark API U.S. Petroleum Industry Employee Benchmark In 2008, the results of a long-term health study revealed that ExxonMobil
employees in the United States enjoyed 1.5 0.4 healthier lives than those of the compa- rable U.S. population. The study—the largest of its kind for the petroleum industry—was conducted by comparing 0.75 0.2 employee public death records to what would be expected among Americans in general. Among 177,000 ExxonMobil employees, deaths from heart disease 01 02 03 04 05 06 07 08 01 02 03 04 05 06 07 08 and from all external causes, such as accidents, were more than 30 percent lower than expected for the general U.S. population. These positive findings can be partially attributed to the “healthy worker effect,” where people who are able to maintain employment are gener- ally healthier than the overall population. ExxonMobil’s long-term corporate commitment to safety and health is a contributing factor as well. The study is part of our efforts to better understand and manage any health risks of our products and operations. treatment to keep healthy workers disease- Product stewardship and and disposal considerations. Our disciplined free and educate HIV-positive workers on how product safety process ensures that our products comply to live safely with the illness. ExxonMobil does with the safety requirements of the more than not test for HIV and HIV status is not a factor ExxonMobil is dedicated to minimizing the 180 countries where we have a presence. in determining an employee’s ability to work. risks and impacts associated with the manu- We monitor and assess changing and emerg- facture, use, and disposal of our products. ing safety requirements to ensure that our Throughout our operations, we analyze existing We actively identify and evaluate potential products continue to be safe for use by the population data on the prevalence of HIV to risks to ensure minimal effects on both public. In those countries that currently do understand local risk factors for HIV transmis- people and the environment while improving not have product safety regulations, we apply sion in the general population; as well as the product performance. responsible standards. We tailor our product capacity of local and national health services safety warning to local regulations and do so infrastructure to support the diagnosis, treat- During the development of—and prior to in more than 80 languages. In 2008, more than ment, and care of HIV/AIDS; and determine the marketing—our chemical, lubricant and spe- 425,000 Material Safety Data Sheets (MSDS) level of access to care provided to employees cialties, and fuels products, we assess safety, were distributed to customers to communicate and families via company health plans. health, and environmental (SHE) aspects as well as compliance with product safety this information. In 2008, ExxonMobil affiliates in: legislation in intended markets. Rigorous ExxonMobil continues to conduct and support • Angola conducted 16 workplace training assessments required by government authori- research to improve our understanding of the sessions; three community training sessions; ties are conducted to assure a new product’s SHE effects of the products and substances and nine employee events, such as HIV/AIDS safety. We update these assessments as new that we manufacture. We use computer-based Family Day; information becomes available. These same tools to help us predict potential risks to considerations are also addressed during human health, safety, and the environment, • Cameroon assisted over 1200 women and product modification. Products used in sensi- and to improve the design of our products. parents with AIDS in the Nyon District hos- tive markets, such as food contact, undergo pital, through direct employee contributions additional SHE assessments. and matched funds from the Cameroon Oil on the Web: Transportation Company; and, We conduct SHE and regulatory assessments of marketed products to assure compliance Safety and health policies • Indonesia established a committee to and to provide appropriate information to exxonmobil.com/managementsystems conduct a Knowledge, Attitude, and Practice those that transport, use, and dispose of our Emergency preparedness Survey; blood-borne disease awareness products. Examples of these assessments exxonmobil.com/emergencyresponse sessions; and a workplace gap assessment and corresponding communications include Product stewardship policy within ExxonMobil facilities in Aceh, Jakarta, appropriate uses, potential health and environ- exxonmobil.com/products and Cepu. mental effects, appropriate personal protec- Awards tion and exposure controls, first aid measures, exxonmobil.com/awards
22 exxonmobil.com Case Study: Preparing for disasters and other extreme events Hurricane preparedness At ExxonMobil, risks are mitigated with appropriate contingency planning and the application of a comprehensive risk management system. Business continuity planning and emergency preparedness are two essential elements to manage risk, so we can continue supplying fuels for transportation and electrical power as well as chemicals for consumer products, which are vital to the nation’s economy.
Global concern Our approach With an increasing number of people living • Early and coordinated action to respond in coastal areas and critical infrastructure rapidly and effectively MI AL located along the Gulf Coast of the United • Availability of fuel supplies along evacuation TX LA Mobile Bay States, the risks of casualties, property dam- routes and for emergency responders age, and financial hardship are severe when Beaumont • Business continuity and emergency hurricanes make landfall. In the event of an Chalmette response plans to protect the safety of our extreme weather event, our most important Houston employees and operations Baton Rouge priority is to protect the safety and health of Baytown our workforce, their families, and our commu- • Worse-case scenario emergency response
nities, and to secure our operations to reduce exercises to practice coordination and Offshore Gulf of Mexico potential impacts to the environment. logistical response, and propose upgrades to standard processes and contingency plans
In 2005 and 2008, Hurricanes Katrina, Rita, to act as a focal point for approximately impacted areas to sustain operations. Once Gustav, and Ike impacted coastal manufacturing 20 ExxonMobil business units and functional the storm had passed, we followed recovery facilities and offshore oil and gas production, emergency support groups. This ensures procedures, including return-to-work plans, resulting in equipment damage, operations that common business needs—such as which focused on arrangements for alternate interruptions, and supply chain disruptions. employee communications; human resources employee workspace, support for critical When these events occur, our focus is on two benefits; IT support; procurement of materi- operations, and damage assessments to things: 1) safety of people and the environment als, supplies, and equipment; and interface initiate necessary repairs. and 2) maintaining critical fuel supplies. with the local and state government—are ExxonMobil’s preparation and response communicated and managed jointly across Operational challenges. ExxonMobil has planning was executed through the operating multiple business units. extensive operations along the Gulf Coast, organizations and the Coordination Team. across Texas, Louisiana, and Alabama, Hurricane preparedness planning is initiated As a result of our coordinated response both on- and offshore. The Houston, Texas prior to the start of hurricane season by effort, the majority of our operations were area alone is home to six headquarters of updating response procedures, training per- able to return to normal business operations ExxonMobil’s operating companies and sonnel, and ongoing monitoring of hurricane within 10 days of hurricane landfall. However, ExxonMobil’s largest employee population activity. Within approximately 10 days of our Beaumont chemical plant experienced of approximately 16,000 employees and hurricane landfall, personnel and equipment significant flooding due to the storm surge of 5500 retirees. preparations are started, including travel out Hurricane Ike, which delayed restart. Overall, of potentially impacted areas. our actions also minimized impacts to com- Critical to our preparation and response is munities and maintained critical supplies. accurate tropical weather forecasting, including How we did. Prior to Hurricane Ike’s land- intensity, size, and potential hurricane landfall. fall on the Gulf Coast in 2008, we relocated Ongoing improvement plans. Based on our Advanced weather information and forecasting response teams and critical personnel to experience with Hurricanes Gustav and Ike, tools allow for faster decision-making. alternate sites in north Texas, away from the we will continue to improve our business directly impacted area. Three days ahead of continuity and emergency response plans. How ExxonMobil prepares and responds. hurricane landfall, approximately 60 staff had Through ongoing training and enhancements All ExxonMobil operations, especially along been relocated to our alternate office in Dallas, to our recovery procedures, we are focused the Gulf Coast, have extensive hurricane followed by nearly 500 critical business conti- on safely and quickly resuming operations preparedness plans, which include procedures nuity staff, together with their families. We flew without disruptions to the supply of critical for preparation, response, and recovery. In our offshore upstream operations crews to products and services during future extreme 2005, following Hurricanes Katrina and Rita, safety onshore and pre-positioned emergency events. We will also continue to strengthen we created a Regional Response Coordination generators to minimize power disruptions at relationships with external groups, including Team to improve our ability to respond to critical operations such as pipelines, terminals, state and federal governments, to expedite significant events—such as hurricanes— refineries, and key service stations. We also key response and recovery actions neces- impacting multiple business units simultane- stored crude oil, products, and lubricants sary to increase available fuel supplies during ously. The Coordination Team was created at our refineries and terminals outside of periods of shortfall.
2008 Corporate Citizenship Report 23 “Reducing the environmental impact of today’s energy is an important step toward a more sustainable future.” Sherri Stuewer, Vice President of Safety, Health, and Environment Environmental Performance Protect Tomorrow. Today.
ExxonMobil is committed to operat- and regulations. Our environmental manage- restore the environment when operations are ing throughout the world in a way ment processes are guided by our Protect concluded. We have numerous examples that protects the environment and Tomorrow. Today. initiative, which outlines our of incorporating this full life cycle concept takes into account the economic expectations for delivering superior environ- into our projects around the world. mental performance, driving environmental and social needs of the communities incidents with real impact to zero, and achiev- Assessing our Our goal is to achieve 1 where we operate. ing industry-leading performance in priority surroundings excellent environmental performance in each areas of importance to each business. Because our business spans the globe, we of our businesses to Protect Tomorrow. Today. operate in a variety of ecosystems, some It is our objective to operate responsibly with sensitive characteristics. Our approach everywhere we do business by implementing s es to environmental protection begins with a scientifically sound and practical solutions ss 2. A D . e thorough understanding of our surroundings that consider the needs of the communities 1 s i g and operating environment. in which we operate. n Sustainable Conducting impact assessments. Approach to Managing our environmental Throughout a potential project or develop- performance Environmental 4 ment’s life cycle, we conduct Environmental, . Protection
R Socioeconomic, and Health Impact Our commitment to operating in an environ- e s t te Assessments (ESHIAs) and integrate the mentally sustainable manner is anchored in our o a re r environmental policy. Our policy emphasizes pe results into project evaluation, planning, and . O individual responsibility; fosters appropriate 3 decision-making. Our assessments consist operating practices and training; and requires of an evaluation of biological, chemical, and our facilities to be designed, operated, and A sustainable approach to physical characteristics, including people’s managed with the goal of preventing incidents, health and socioeconomic needs as an integral and controlling emissions and waste to below environmental protection part of the environment. With the help of sci- harmful levels. Not only is this our central Understanding the full life cycle of our opera- entists and engineers, map builders, and land commitment to environmental responsibility, tions is important to operating in an environ- use experts, we typically analyze surrounding but pursuing it year after year has helped mentally sustainable manner. There are four land use in each project’s development area. ExxonMobil reduce operating costs, improve key steps, which are integral to the life cycle We use satellite imagery to better assess safety, and reduce impact to the environment. of our operations. The first step is to assess how areas may be impacted by a project the surroundings prior to development. The and to identify ways in which facilities could We maintain strong management processes in second step is to design and construct facili- be redesigned to reduce their impacts. Our our Operations Integrity Management System ties to minimize their environmental footprint. Environmental Aspects Guide helps us identify (OIMS) and adhere to all applicable laws The third is to ensure the integrity of the and address all significant environmental facilities we operate, and the fourth is to impacts associated with our operations.
24 exxonmobil.com Priority issues
Biodiversity. Minimize our environmental Water Management. Reduce water use Oil Sands. Conduct research to improve footprint by incorporating high standards and preserve water quality through the land reclamation, energy efficiency, and to protect and mitigate potential impacts design and operation of our facilities, water use while developing oil sands. to biodiversity. recycling and reuse, and measures to prevent water pollution.
60% 0 5 $5.2 +50% reduction spills U.S. sites billion reduction in the number from ExxonMobil- certified by the in worldwide of combined of spills greater operated and Wildlife Habitat environmental NOx and SO2 than one barrel long-term chartered Council expenditures emissions since 2001 marine vessels since 2000
up close: Protecting biodiversity. ExxonMobil believes energy efficiency, drill cuttings discharge, that biodiversity conservation can be balanced water, waste, land use, and socioeconomic Designing to minimize impact with economic development through careful management. The Standards, which are being We look for opportunities to reduce our management of environmental impacts. expanded for application across all upstream environmental footprint in the design Our sites incorporate biodiversity protec- operations, allow us to identify environmental phase of every new project. tion through their efforts to limit impacts in improvement opportunities early in project sensitive areas. Our Environmental Business planning when they can be implemented Canada. At the Kearl Oil Sands Project Planning (EBP) efforts are designed to identify most effectively. in Alberta, a water storage system will environmental and biodiversity protection be used to reduce water withdrawal from Operating objectives and actions that are specific to each 3 the Athabasca River during low-flow location. Our mitigation actions around the with integrity winter periods. world include modifying engineering design, Operating our facilities with integrity is critical Italy. At the Adriatic Liquefied Natural and construction and operating practices to to minimizing potentially adverse environ- Gas facility, project plans incorporated protect specific species and sensitive habi- mental impacts. OIMS helps us manage the creation and monitoring of an artificial tats; undertaking extensive reclamation efforts our safety, health, and environmental risks reef to be installed in the spring of 2009. to restore degraded sites to environmentally worldwide. Through OIMS, we communicate Based on input from regulators and local acceptable conditions; and participating in expectations, measure progress, and drive marine experts, the reef will be situated to initiatives that enhance the wildlife and habitat continuous improvement in environmental enhance the environmental productivity attributes of our properties. performance. OIMS meets the standard for of several natural outcrops. Designing our facilities environmental management systems (ISO 2 14001:2004) established by the International The reef foundation will be built from a and operations Organization for Standardization. series of pyramid structures known as Wherever we operate, we meet local a “technoreef,” which will be enhanced Spill prevention. ExxonMobil is committed to regulations for environmental performance, with artificial seaweed bundles to provide the prevention of spills from our operations. and where there are no local regulations, habitat for eggs and larvae. In consul- In 2008, the number of spills greater than we operate to standards that we believe tation with local fishermen, additional one barrel was down by over 60 percent since are protective of the environment. We base structures with net-snagging devices will 2001. Our total volume of hydrocarbons these standards on sound science and be located around the perimeter of the spilled in 2008 was about 20 thousand barrels, comprehensive risk assessments. reef to prevent trawling activities. Italy most of which was recovered at the site of the has extensive experience with creating For example, ExxonMobil Development spill. Our industry-leading spill performance is artificial reefs. Since 2005, 10 reefs have Company, which manages ExxonMobil’s major a result of effective operations integrity man- been successfully installed. new upstream projects worldwide, has devel- agement, ongoing upgrades, key equipment oped Environmental Standards for nitrogen replacements, and comprehensive inspection oxides emissions, flare and vent reduction, and surveillance programs.
2008 Corporate Citizenship Report 25 Other Spills (Not From Marine Vessels) Marine Vessel Spills (Owned/Operated Air Emissions (VOCs, SO2, and NOx) (number of oil, chemical, and drilling fluid spills and Long-Term Leased) (millions of metric tons) greater than 1 barrel) (number of hydrocarbon spills less than 1 barrel) VOCs SO2 NOx Spills to Water Spills to Soil *0 Spills
400 6 0.4
200 3 0.2
05 06 07 08 05 06 07 08* 05 06 07 08 05 06 07 08 05 06 07 08
In 2008, there were zero spills from ExxonMobil-operated vessels or those on long-term lease, sustaining an impressive performance trend.
On March 24, 1989, the tanker Exxon Valdez ExxonMobil marine affiliates are active Water management. Developed and develop- ran aground in Prince William Sound in participants in the development of important ing nations are increasingly faced with issues Alaska. The company took immediate voluntary industry quality initiatives, includ- of water scarcity and reduced water quality. responsibility for the spill, cleaned it up, and ing implementation of the Oil Companies ExxonMobil continually seeks ways to reduce voluntarily compensated more than 11,000 International Marine Forum’s (OCIMF) water use and preserve water quality through Alaskans and businesses who claimed direct Tanker Management and Self Assessment, the design and operation of our facilities, damages. We have spent over $3.8 billion on a best practice guide for ship operators that recycling and reuse, and measures to prevent compensation, clean-up efforts, and settle- complements existing quality standards. water pollution. Our approaches include on-site ments and fines. The clean-up was declared ExxonMobil marine affiliates are also working water reuse, purchase of treated wastewater complete by the State of Alaska and the U.S. with OCIMF to expand the Ship Inspection for use as process water, and enhancements Coast Guard in 1992. In June 2008, the U.S. Report Exchange (SIRE) program to barges. in processes to decrease water needs. In Supreme Court set maximum punitive dam- SIRE promotes a uniformly high standard of 2008, the net consumption of fresh water ages of $508 million in its ruling in the Valdez common inspections that may be used within at our operations was 2200 million barrels. litigation, following a lengthy legal process. vessel screening and inspection processes We manage water use in our operations for member companies. We have worked hard over many years to around the world, just as we do any other address the impacts of the spill and to prevent Air emissions from operations. ExxonMobil potential environmental impact associated such accidents from recurring. Our current mar- is committed to reducing the emissions of with our operations. ExxonMobil Development itime performance reflects this commitment. volatile organic compounds (VOCs), sulfur Company’s Environmental Standard for water dioxide (SO2), and nitrogen oxides (NOx) from management requires major upstream proj- In 2008, there were zero spills from our operations. We have implemented cost- ects to conduct an assessment of the local ExxonMobil-operated vessels or those on effective new technologies and adopted new water resources. The Standard also establishes long-term lease, sustaining an impressive operating practices to reduce air emissions, project planning and design requirements for performance trend. We consider this strong driven in part by new regulatory requirements, major upstream projects to consider mitiga- performance encouraging and it serves as a but also in response to community priorities. tions for reducing unnecessary usage of water solid platform for continuous improvement As a result of these efforts, our combined resources. ExxonMobil operations around the efforts. ExxonMobil marine affiliates con- emissions of VOCs, SO2, and NOx decreased world evaluate water use issues and undertake tinue to receive external recognition for their by 25 percent from 2005 levels. By year end water improvement initiatives, where appropri- long-standing, industry-leading safety and 2008, we achieved more than a 50-percent ate, as part of their respective EBP efforts. environmental performance. reduction of our combined NOx and SO2 For example, our Cold Lake operations Given the projected growth and important emissions from our 2000 baseline levels at in Canada have significantly reduced the role that marine transportation plays in global our U.S. refining facilities. We are on track to amount of water required for the production commerce, ExxonMobil marine affiliates con- meet our commitment to achieve a 70-percent of oil sands that are buried too deeply for tinue to find innovative ways to provide safe, reduction compared to 2000 baseline levels secure, and reliable marine transportation. by 2012.
26 exxonmobil.com ExxonMobil environmental scientists pioneered a strategy for natural land man- agement, which brings together techni- cal, legal, and regulatory approaches to conserve or enhance ecological services while delivering lower management costs and higher property returns.
up close: surface mining. Large amounts of steam are expense. Fines and settlements paid in 2008 necessary for injection into the underground represent about one-quarter of 1 percent of Evaluating our leased land deposits to soften the hydrocarbon resource our total environmental expenditures. All over the world, ExxonMobil looks to so it can be pumped to the surface for extrac- develop and to actively pursue commer- tion. As a result of improvements since the Restoring the 4 cially producible oil in an environmentally mid-1980s, more than 95 percent of the water environment responsible way, including activities on used during recovery operations is recycled Remediation and restoration activities are a leased land. to produce more steam. critical step in reducing our overall environ- mental impacts. Ultimately, these efforts It costs millions of dollars to acquire Waste management. ExxonMobil uses a enhance asset and community value while and maintain leases, and many millions tiered approach to reduce both hazardous creating opportunities for beneficial use of more to evaluate resource potential and and nonhazardous waste. We first work to idle properties and protecting the safety and develop new technologies to make reduce waste at its source. If the waste is not health of ExxonMobil employees, contractors, production possible in increasingly fully eliminated, we recycle or reuse materials and neighbors. challenging environments. where possible. Any remaining waste is either treated to render it nonhazardous or disposed Site remediation. As a result of ExxonMobil’s A typical lease-term held by ExxonMobil, of in compliance with local regulations. continued focus on environmental excellence, in the United States, is five or 10 years ExxonMobil Environmental Services (EMES) and must be relinquished if production Since 2004, we successfully reused or was established in 2007 to consolidate and or other activity does not occur within a recycled on average about 40 percent of the enhance management of remediation activi- specified term. We are either producing or hazardous waste generated. The amount of ties around the world. EMES is responsible for evaluating 78 percent of our leased acre- hazardous waste disposed in 2008 totaled developing and implementing strategies and age; most of the remainder that we have 339 thousand metric tons, an increase of programs to address soil and groundwater con- analyzed and deemed not prospective about 45 percent from our 2005 to 2007 tamination at company facilities, idle proper- expires within the next 12 months, and average. Excluding hazardous waste from ties, and formerly owned properties. EMES is will be returned to the government. three temporary remediation projects, where committed to apply strategies intended to help country regulations required disposal rather prevent, contain, and mitigate environmental than recycling or re-use, our 2008 disposed risks through best-in-class remediation and volume was about equal to 2007 performance. property management services. In 2009, Regulatory compliance and expenditures. we plan to enhance EMES by standardizing In 2008, our worldwide environmental project management and improving the expenditures totaled about $5.2 billion. This global sharing of best practices. includes about $2.5 billion in capital expen- diture and about $2.7 billion in operating
2008 Corporate Citizenship Report 27 up close: Developing oil sands responsibly Globally, about 13 percent of the world’s known oil reserves are buried in oil sands—bitumen embedded in sand and clay. To help meet the world’s growing energy demand, we are developing oil sands reserves in Canada. Where deposits are found near the surface, oil extraction operations use open-pit mining, which has a visible impact on the land while in operation. We are working to minimize these impacts through concurrent reclamation efforts.
Our Canadian affiliate, Imperial Oil Limited, is one of several companies funding lead- ing-edge reclamation research conducted by the Canadian Oil Sands Network for Research and Development. We invest millions of dollars annually to research revegetation, watershed management, and improved reclamation materials.
Imperial Oil Limited has a 25 percent interest in Syncrude, which operates an oil sands project in northern Alberta. Our improved reclamation activities make bet- ter use of the first few inches of top soil— home to the seeds, roots, and nutrients For example, in 1989, we ceased operation of For example, we applied this approach in a vital to forest health. So far, the project a phosphate ore mine in Fort Meade, Florida, recent divestment of our decommissioned re- has permanently reclaimed 22 percent of and sold the property in 1998. ExxonMobil search campus in Florham Park, New Jersey. its original mining area lease—the largest remained responsible for reclaiming mined The process revealed that the ecological ser- share in the oil sands industry. In 2008, land and restoring wetlands across the vices associated with 80 hectares of wetlands Syncrude received the industry’s first entire 5260-hectare site. Over the course of on the site had significant financial value. provincial land reclamation certificate for mining operations, approximately 49 hect- Our future use strategy, therefore, included a 104-hectare parcel known as Gateway ares of wetlands had been mined, leaving conserving 60 percent of the property as open Hill. We have planted 5 million seedlings large depressions in the ground. As part of space and contributed to a 30-percent higher and are in the process of reclaiming ExxonMobil’s commitment to this land, we sale price. Surrounding communities are 4500 hectares. Reclaimed land is being have planted over 20,000 trees to restore benefiting from portions of the open space, put to productive reuse, including a the wetlands. ExxonMobil is also completing part of which will be converted into sports 4.5-kilometer hiking trail and grazing more natural and passive stormwater control fields and part of which will remain conserved grounds for a herd of 300 bison. systems throughout the site, having removed wetlands, essential for flood control and Producing and upgrading oil sands old wooden spillways, pumps, piping, and groundwater recharge. consumes more energy and water than culverts. To date, over 4850 hectares of the conventional oil production. According to former mine site have been reclaimed and the Canadian Association of Petroleum much of the reclaimed land is being used Producers, full life cycle GHG emissions for pasture, wetland habitat, and residential could be up to 15-percent higher for fuel developments. Reclamation and wetland derived from oil sands than for fuel de- restoration activities have been ongoing at this site since about 1992 and are expected rived from onshore light crude oil. We are on the Web: focused on finding and developing ways to be completed by about 2011. to improve both energy and water use Natural land management. ExxonMobil Environmental Business Planning efficiency. Imperial Oil is a founding spon- environmental scientists pioneered a strategy exxonmobil.com/ebp sor of the Imperial Oil-Alberta Ingenuity for natural land management, which brings Conserving biodiversity Centre for Oil Sands Innovation at the together technical, legal, and regulatory ap- exxonmobil.com/biodiversity University of Alberta, which seeks break- proaches to conserve or enhance ecological Air emissions through technologies for more energy- services while delivering lower management exxonmobil.com/airemissions efficient extraction processes. Imperial Oil costs and higher property returns. Our strategy has also helped to pioneer state-of-the- Oil sands includes a site analysis of future ecological imperialoil.com/oilsands art water recycling techniques through and commercial use. Results are used in Awards 40 years of technical innovation at our the development of our restoration and exxonmobil.com/awards Cold Lake operation. redevelopment actions.
28 exxonmobil.com up close: Biodiversity ExxonMobil is involved in a partnership to improve the accuracy and completeness of data in the World Database of Protected Areas. The database provides high-quality biodiversity data for use in Geographic Information Systems technology, which can be used to accurately identify sensitive areas.
4
3
2 1 6
5 7
8
1 United States 4 Norway 6 Qatar ExxonMobil has been a member of the ExxonMobil’s Slagen refinery in Oslofjord is At our Qatargas II Project, pipelines running Wildlife Habitat Council since it was created located within an area protected for its high from offshore fields to shore must cross in 1988. Five of our sites across the United ecological and recreational value. Our bio- hard coral habitat that extends along the States have been certified by the Wildlife logical characterization studies of the for- coastline. To mitigate overall impacts on Habitat Council. Projects at our certified ested area have shown that areas within the corals in the region, over 4500 individual sites range from enhancing bluebird habitat refinery fence line—which have seen only coral heads were relocated out of proposed and nesting grounds for osprey to habitat restricted human entry since the refinery pipeline corridors into recovering coral protection for spawning trout. start-up in 1960—have greater ecological habitat, where they will contribute to habitat value than areas outside the fence line, har- recovery. Monitoring performed in 2007 and 2 Canada boring more than 20 endangered plant and 2008 indicated that over 99 percent of the ExxonMobil—in partnership with the Nature animal species. These studies have been relocated coral are surviving and healthy. Conservancy of Canada, local government, so successful that they will be continued and the community—is protecting a critical in 2009. The results of these studies will 7 Singapore mass of sensitive habitat on Nova Scotia’s be shared and used to achieve sustainable To help develop public awareness and fos- Aspotogan Peninsula. Our contribution mixed use of the overall protected area. ter conservation of the rich flora and fauna is helping to protect over 336 hectares at in Singapore, ExxonMobil joined the Raffles Deep Cove, an ecologically important area 5 Nigeria Museum of Biodiversity Research to create for both its landscape and the presence of ExxonMobil helped sponsor a research educational materials. The most recent rare lichens. project on the negative effects of desert guidebook, Private Lives—An Exposé of encroachment and dry land degradation, Singapore’s Mangroves, was published in 3 France including poverty, hunger, and loss of bio- 2008. To date, the various books have sold Working with Le Renard, a nonprofit envi- diversity and natural resources in northern over 5000 copies. ronmental organization in southern France, Nigeria and other countries bordering the 8 ExxonMobil helped to restore wildlife Sahara Desert. The project plans to plant New Zealand biodiversity on 150 hectares of unused nearly 1 million trees to serve as a buffer to ExxonMobil conducted a voluntary program fields. The surrounding areas near one of prevent further desert encroachment along to observe location, movement, and abun- ExxonMobil’s refineries had seen significant a 16,000-kilometer stretch across 20 dance of marine mammals and birds during decreases in local wildlife due to invasive countries from western Africa to Europe. exploration activities in the Great South Basin. plants. By working with local authorities The results, released to the government and nonprofit organizations to eliminate the and the iwi people (the indigenous Maori invasive plants, wildlife habitat has been population), provided insight into marine enhanced and fauna and flora biodiversity mammals and birds in the region, including has been restored. the traditionally important mutton bird.
2008 Corporate Citizenship Report 29 “Our scientists and researchers are committed to finding and applying technological advances to help confront the challenge of rising CO2 emissions.” Pat Brant, Chief Polymer Scientist Managing Climate Change Risks Meeting growing demand, reducing greenhouse gas emissions
With increased global energy Assessing risks associated with climate than $1.5 billion in activities to increase demand, energy-related carbon change policy. We regularly consider risks energy efficiency and reduce GHG emissions. dioxide emissions are expected to to operations and investments from a wide In the next few years, we plan on spending rise by an average of 1 percent per variety of perspectives: technological, at least $500 million on additional energy physical, political, and regulatory. A number efficiency initiatives. year through the year 2030. As was of organizations have attempted to quantify recently summarized in the Fourth Assessment In 2008, our energy efficiency performance the potential implications of climate-related Report of the Intergovernmental Panel on in our refining and chemical operations policies for oil and gas industry shareholders. Climate Change (IPCC), the risks to society was about even versus 2007, largely due to However, these efforts are based on regula- and ecosystems from increasing greenhouse changes in plant operations. However, over tory assumptions that are only speculative gas (GHG) emissions are significant. Meeting the past several years, we have improved at given the current status of negotiations on the enormous energy demand growth and a rate about two to three times faster than climate-related policies. managing the risk of GHG emissions are the the industry. We remain on track to meet our twin challenges of our time. Reducing greenhouse gas target of improving energy efficiency across our worldwide refining and chemical opera- We all must engage in the search for solutions emissions from our operations tions by 10 percent between 2002 and 2012. if we are to succeed at mitigating these In 2008, our direct GHG emissions from our This target is consistent with the American risks. Progress can be achieved through equity operations were 131 million metric Petroleum Institute’s Voluntary Climate climate change policy frameworks that enable tons,* which is a reduction of about 10 million Challenge Program in the United States. countries to pursue economic progress while metric tons from 2007. Over 2 million metric promoting the development of technologies tons of this change were due to reduction Cogeneration. With cogeneration, we can necessary to generate and use energy more actions taken in 2008, including reduced produce electricity to power our operations efficiently. As the largest publicly traded hydrocarbon flaring in Nigeria. The remainder while also capturing heat to make steam international energy company, the energy was due to normal variations in our operations to transform raw materials into consumer ExxonMobil produces meets 2 percent of the and improved GHG emissions measurement products. This provides a more efficient world’s needs. We share the responsibility at some of our facilities. power source than purchasing from a local to take action with scientists, citizens, and utility, in some cases by up to 50 percent Energy efficiency improvements. In 2008, governments around the world and are doing more efficient. our operations consumed approximately 1.5 so in several substantive ways. Over the years, billion gigajoules of energy. By applying new As an industry leader in cogeneration we have supported major climate research energy-efficient technologies, we use less applications, we have interests in about projects, and we contribute to an array of energy to run our business, extend the life of 100 cogeneration facilities in more than public policy organizations that research and the world’s energy reserves, and reduce GHG 30 locations worldwide. We have invested in promote discussion on climate change and emissions. Since 2004, we have invested more cogeneration projects for several decades. other domestic and international issues.
*Our calculations are based on the guidance provided in the Compendium of Greenhouse Gas Emission Estimation Methodologies for the Oil and Gas Industry (American Petroleum Institute) and the Petroleum Industry Guidelines for Reporting Greenhouse Gas Emissions (International Petroleum Industry Environmental Conservation Association).
30 exxonmobil.com Priority issues
Reducing Greenhouse Gas Emissions. Policy Engagement. Help shape energy Flare Reduction. Employ a combination Improve energy efficiency and reduce policies that support long-range thinking, of technology, processes, and engage- greenhouse gas emissions from our own encourage long-term investment, and ment with host governments to address operations as well as from energy use allow for an integrated set of solutions. operational and regional barriers to natural by consumers. gas flaring reduction.
$1.5+ 30% ~4 10 ~4.5 billion reduction million million gigawatts invested to increase in upstream metric tons per year metric ton of electricity energy efficiency and hydrocarbon flaring of CO2 captured and reduction in produced through reduce GHG emissions since 2007 transported from GHG emissions cogeneration, enough since 2004 LaBarge Shute from 2007 to supply 2 million Creek facility U.S. homes
These projects have the capacity to produce Policy options for curbing greenhouse gas emissions more than 4.5 gigawatts of electricity, enough Remarks by Rex W. Tillerson, Chairman and CEO to supply the needs of more than 2 million U.S. homes. In 2008, we expanded the use “With a new U.S. Congress and Administration, we have an opportunity to of cogeneration and added 125 megawatts expand the dialogue about how America can best make an impact on this important global issue—reducing greenhouse gas emissions. As this of power capacity, with the start-up of new dialogue goes forward, we must be mindful that sound public policy facilities at our refinery in Antwerp, Belgium. must not impede innovation, inhibit competition, or add market uncer- With new facilities under construction, we tainties by picking winners and losers. Good policy sets aspirational expect to increase our cogeneration capacity goals that represent the needs of the people and then provides the broad framework for to more than 5 gigawatts by 2011. entrepreneurs and innovative thinkers to achieve these goals. We routinely evaluate cogeneration develop- One policy option that is intended to reduce emissions—and which has received much ment opportunities when considering new attention—is a cap-and-trade system. Before we rush to enact such a system, we must ask investments that require both power and whether it can best achieve our shared goal of actually reducing greenhouse gas emissions. steam. For example, in Singapore, we are Cap-and-trade systems inevitably introduce unnecessary cost and complexity that under- developing the nation-state’s largest owned cut their effectiveness. It is important to remember that a cap-and-trade system requires a and operated petrochemical project, and new market infrastructure for traders to trade emissions allowances. This new “Wall Street” cogeneration is expected to meet 100 percent of emissions brokers will take the emphasis away from the goal of reducing carbon emis- of the project’s electricity needs. sions and focus on trading on price volatility instead. Carbon capture and storage. ExxonMobil There is another policy option that should be considered, and that is a carbon tax. A carbon is a leader in the development and use of tax avoids the costs and complexity of having to build a new market for securities traders component technologies essential for carbon or the necessity of adding a new layer of regulators and administrators to police companies capture and storage (CCS), which we have and consumers. And a carbon tax can be more easily implemented. It could be levied under focused on in our oil and gas operations for the current tax code without requiring significant new infrastructure or enforcement bureau- many years. The ability to capture, transport, cracies. A carbon tax is also the most efficient means of reflecting the cost of carbon in all and store CO2 safely and efficiently repre- economic decisions—from investments made by companies to meet their fuel needs to sents an important opportunity for reducing the product choices made by consumers. In addition, such a tax should be made revenue global GHG emissions. For example, at our neutral. There should be reductions or changes to other taxes—such as income or excise LaBarge Shute Creek facility in Wyoming, taxes—to offset the impacts of the carbon tax on the economy. we have been capturing, transporting, and Finally, there is another potential advantage to the direct-tax, market-cost approach. A selling CO2 since 1987, at rates up to 4 million carbon tax may be better suited for setting a uniform standard to hold all nations accountable. metric tons of CO2 per year. We are currently Given the global nature of the challenge, and the fact that economic growth in developing expanding this capability by nearly 50 percent economies will account for a significant portion of future greenhouse gas emissions increases, policy options must encourage and support global engagement.”
2008 Corporate Citizenship Report 31 up close: Greenhouse Gas Reductions From ExxonMobil Actions From 2006 to 2008 Direct equity, CO2-equivalent emissions (millions of metric tons) ExxonMobil’s actions to reduce greenhouse gas emissions Energy Efficiency and Cogeneration Flare Reduction Our strategy to achieve reductions in GHG emissions is focused on increasing our own energy efficiency in the short term; advancing current proven emissions-reducing technolo-
gies in the medium term; and developing breakthrough, game-changing technologies for 8 the long term. These initiatives will reduce emissions generated both internally by our own operations and externally by consumers.
Internally, new energy efficiency technologies and day-to-day operational efficiency 4 activities generate significant energy savings and reduce GHG emissions. Since the launch of our Global Energy Management System in 2000, we have identified opportunities to improve energy efficiency by 15 to 20 percent at our refineries and chemical plants and
have already implemented about 60 percent of these. 06 07 08
Near-term solutions Longer-term solutions beyond 2030
Reducing • Energy efficiency • Next generation biofuels improvements GHG • Carbon capture and storage emissions • Cogeneration • Energy efficiency from energy • Flare reduction • Gasification production • Carbon storage • Solar energy
• Engine research • Advanced transportation Improving • Tire and automotive parts • Energy storage consumer technology • Hydrogen for vehicles use of • Lithium-ion battery materials • Advanced engine and fuel energy • Advanced fuel economy systems technologies motor oil
and significantly reducing overall emissions. ExxonMobil conducts and supports research process, making tires lighter while reducing Most of the CO2 marketed at Shute Creek is aimed at developing innovative, efficient, air permeability. Cars with under-inflated tires used for enhanced oil recovery. ExxonMobil low-emissions technologies to improve how burn more gasoline. is also a partner in the Sleipner Field in the world uses and produces energy. We • Motor oil. ExxonMobil introduced Mobil 1 the North Sea, which has injected over focus on steps that can be deployed in the Advanced Fuel Economy, a lower-viscosity 10 million tons of CO2 (for storage) over the short term as well as options for the longer synthetic motor oil that can improve fuel past decade. term, beyond 2030. Longer-term research is economy by up to 2* percent versus motor aimed at creating low-carbon or no-carbon ExxonMobil supports a robust research oils most commonly used. Because less options for energy supply and use, which program on CCS through a variety of part- energy is required to circulate oil in the engine, could become part of our future business. nerships—Global Climate and Energy Project more energy is available for driving the car. We conduct research through our in-house (GCEP) at Stanford University, CO2ReMoVe, staff, in partnership with academic and private If one-third of U.S. vehicles used technologies U.S. Department of Energy’s Regional Carbon groups, and through programs such as GCEP. such as these, it would save about 5 billion Sequestration Partnership Program, the GCEP’s 2008 research portfolio included gallons of gasoline and prevent GHG emissions International Energy Agency’s Greenhouse promising research activities in biomass and equivalent to taking about 8 million cars off Gas R&D Programme, and the Gulf Coast solar energy. the road each year. Carbon Center as well as research at the Georgia Institute of Technology, the University Conventional fuel-saving technologies. Advanced vehicle technologies. ExxonMobil of Texas, and the Massachusetts Institute Together with automobile manufacturers and is collaborating with vehicle and engine manu- of Technology. other partners, ExxonMobil is using its ex- facturers and others to develop breakthrough pertise in chemicals and fuels to improve the engine technologies that could produce step- Improving consumer efficiency of current vehicle technologies. changes in fuel efficiency and hold the potential use of energy to diversify energy sources for transportation. • Automotive parts and tires. ExxonMobil Ongoing advances in vehicle and fuel tech- has developed advanced plastics for use • Lithium-ion battery materials. ExxonMobil nology offer significant potential for efficiency in car parts such as bumpers and fuel tanks, Chemical and our affiliate in Japan, gains and reductions in GHG emissions. which make vehicles lighter. For every 10- TonenGeneral, have developed a new However, solutions must be affordable to percent drop in vehicle weight, fuel economy generation of separator films for the lithium- consumers in the developed and developing improves by about 7 percent. ExxonMobil has ion batteries used in hybrid vehicles. Lighter, world and they must allow for continued also worked with tire manufacturers to develop smaller, and more durable batteries are economic growth and improvement in global a new tire-lining technology that uses up to expected to help improve the reliability, energy living standards. 80 percent less material in the manufacturing efficiency, and affordability of hybrid vehicles. To meet growing demand for new and existing
*Actual savings are dependent upon vehicle/engine type, outside temperature, driving conditions, and current engine oil viscosity.
32 exxonmobil.com Greenhouse Gas Emissions (Absolute) Greenhouse Gas Emissions (Normalized) Hydrocarbon Flaring From Upstream Direct equity, CO2-equivalent emissions (millions of metric tons) Direct equity, CO2-equivalent emissions Oil and Gas Production (excluding cogeneration and Hong Kong power) (millions of metric tons) Downstream Upstream Chemical (metric tons per 100 metric tons of throughput) Cogeneration and Hong Kong power Downstream Upstream Chemical
150 50 8
75 25 4
05 06 07 08 05 06 07 08 05 06 07 08 05 06 07 08 05 06 07 08
Distribution of GHG emissions from use of petroleum The International Energy Agency estimates that, on average, about 10 percent of petroleum-related GHG emissions are from industry operations while 90 percent ~90. ~10. percent percent are from consumer use. This being the case, we recognize the importance of developing technologies that help consumers reduce their environmental impacts.
Consumer use of petroleum products Oil industry operations
up close: applications, we began construction of a new separator film plant in Gumi, South Korea, Nigerian flare reduction offshore NGL extraction plants, and higher which is expected to start up in 2009. efficiency flare stacks. The most recent Flaring—burning gas under controlled of these projects is the East Area Project, conditions—serves as a safety device to • Advanced engine and fuel systems which includes a gas compression platform protect people, equipment, and facilities technologies. ExxonMobil is contributing to that injects gas to maintain reservoir pres- during operation disruptions or maintenance. the development of advanced internal com- sure and an extraction platform that recov- It also enables oil and gas production when bustion engine and fuel systems technologies ers NGL from the gas stream. The project’s gas injection or gas utilization pipeline infra- with a long-term goal of achieving significant gas utilization capacity will continue to in- structure is not available, as has been the improvement in fuel economy and lower crease through 2011 as additional gas gath- case in Nigeria. ExxonMobil is committed GHG emissions. ering facilities are installed. In 2008, three to increasing gas utilization in Nigeria and • Hydrogen fuel cells. Together with partners flare reduction projects were commissioned, is actively progressing projects that will end in industry and the research community, which reduced flaring by approximately 120 routine gas flaring from our operations. ExxonMobil is developing an innovative million cubic feet per day (mcfd). ExxonMobil has focused on improving on-board hydrogen-powered fuel cell system. By the end of 2008, we reduced our flaring gas utilization as oil and gas production Measured on a “well-to-wheels” basis, this in Nigeria to less than 300 mcfd. We aim have increased. Even as gas production system could be up to 80 percent more fuel- to reduce flaring even further through future has increased six-fold, we have success- efficient and emit 45 percent less CO2 than projects and operational efforts, which fully increased gas utilization from 25 to today’s internal combustion engine. We are include existing flaring protocols and 80 percent. In 2008, several gas utilization focusing on industrial applications in the near improving equipment reliability. Our ability projects were commissioned, helping term, with the long-term research goal being to commission these projects in a timely to reduce flaring in Nigeria by nearly half application in passenger vehicles. manner and to realize flare reductions relies versus 2006 to 2007 levels. on a cooperative approach with our partners Our approach to gas utilization and flare in Nigeria to maintain funding, enhance on the Web: reduction in Nigeria has been to extract security, and improve the overall infrastruc- Research contributions natural gas liquids (NGL) for sale and inject ture for gas utilization. exxonmobil.com/climateresearch produced gas, which maximizes oil recovery Gas Utilization in Nigeria by maintaining reservoir pressure. We have 20% Our actions to reduce GHG emissions Flared exxonmobil.com/emissions invested over $5 billion to increase gas utilization, with each project requiring years Flaring of engineering design, construction, and 75% exxonmobil.com/flaring Flared installation. We have made significant prog- Global Climate and Energy Project ress over the last decade, with the instal- 1990 2008 gcep.stanford.edu Gas Production: 228 mcfd Gas Production: 1545 mcfd lation of six gas re-injection facilities, two
2008 Corporate Citizenship Report 33 “Making the most of energy resources is about more than oil and gas production—it is about forming global partnerships for economic development.” Rich Kruger, President of ExxonMobil Production Company Economic Development Local actions, global results
Widespread poverty, restricted National content development We are currently in the front-end engineering and design phase of a proposed liquefied access to education, insufficient For decades, we have employed a variety of natural gas project in Papua New Guinea. business and technical skills, lack of economic support and incentive programs for When developed, the project could represent employment opportunities, and cor- capacity building—collectively referred to as the single largest private-sector investment ruption are just a few of the barriers national content development. ExxonMobil ever undertaken in the country, with projected focuses on job creation and supporting local to economic growth in many coun- total direct cash flows of more than $30 billion businesses, in conjunction with strategic com- tries where ExxonMobil operates. to the government and landowners during its munity investments. In doing so, we develop These barriers will not be eliminated through 30-year lifetime. Integrated cross-functional solutions that address current economic aid alone, but through the creation of business ExxonMobil teams are in the process of and social needs while also contributing to frameworks that enable the development of developing a national content plan to sustainable development in the long term. local economies through skills development, maximize the economic and social benefits This is just one aspect of our Best Practices job creation, and opportunities for investment. of the project for the people of Papua New in External Affairs (BPEA) and Production Making the most of energy resources is about Guinea. The proposed national content plan Operations Best Practices that develops local more than oil and gas production—it is about will include training of the local workforce to workforce and suppliers as well as enhances forming global partnerships and creating participate during project construction and our community relationships (see page 36). long-term benefits for local communities. ongoing operations; purchasing local goods When the communities where we operate Our approaches to national content develop- and services; building local supplier capacity, are successful, our business thrives. ment differ between countries as a function with an improved focus on safety and training; Throughout the life cycle of our projects, our of existing infrastructure, industrial base, and contributing to the development of the presence generates revenues and taxes, cre- local supplier capabilities, and local needs. communities in the project area by support- ates jobs, supports community development To address the challenge of allowing for ing health, education, infrastructure, and projects, and helps to increase transparency flexibility among varying infrastructures and agriculture projects. through government disclosure of financial capabilities, while promoting a common information in countries supporting the language to encourage sustainable capacity Workforce development Extractive Industries Transparency Initiative building, we developed the National Content ExxonMobil is committed to attracting, devel- (EITI). As a company with a long-term focus, Development—Guidelines, Strategies, and oping, and retaining the best people from the we work to ensure that the benefits from our Best Practices. The Guidelines are now used broadest possible employee pool to meet our projects are sustainable over time and that by our operations around the world to develop business needs worldwide (for our employ- governments and communities do not depend unique, location-specific plans, which are ment practices and policies, see page 16). solely on our presence. These initiatives lead formalized through business processes At year end 2008, ExxonMobil’s workforce to lasting economic growth by creating a at the local, regional, and global level. numbered nearly 80,000 employees, of which stable operating environment and encourag- about 37 percent were located within the ing diverse future investments. United States and 63 percent internationally.
34 exxonmobil.com Priority issues
National Content. Fund programs that Strategic Community Investments. Training and Development. Provide our promote economic growth and reduce Improve educational programs worldwide employees with the necessary training to known barriers to development in the to enhance math and science skills and develop the leadership capabilities to per- countries in which we operate. support development and economic growth. form effectively in a variety of workplaces.
~$225 ~33% $50+ 9 of 10 +48 million of executives million members of the thousand workforce in combined at ExxonMobil invested to participants corporate giving in are non-U.S. support efforts working on the received corporate the form of cash, employees to fight malaria Chad-Cameroon and professional goods, and services since 2000 project are nationals technical training worldwide
up close: In 2008, about 33 percent of our executives provides students with the training needed to were non-U.S. employees. We hired more be internationally competitive. In 2008, some Making progress toward the than 3600 management and professional of those who graduated from the Center sup- United Nations Millennium employees worldwide, of which approximately ported our newest project, East Area Natural Development Goals 39 percent were women and 69 percent were Gas Liquids II. The United Nations Millennium hired outside the United States. We apply our global experience to local chal- Development Goals—which range from Workforce nationalization. We believe we lenges through best practices, operational combating HIV/AIDS, malaria, and other have a responsibility to build a legacy of excellence, and leading technology. Over the diseases to promoting gender equal- economic progress by maximizing the number short term, we employ expatriates to share ity, empowering women, and achieving of local employment opportunities, and by their experience and expertise as well as train universal primary education—form a investing in the workforce of our host coun- and prepare the national workforce for both blueprint for meeting the needs of the tries, in particular in emerging and develop- operational and leadership roles. In 2008, world’s poorest people by 2015. ing economies. Our strategy is to increase expatriates comprised nearly 4 percent of our Although governments are primarily the number of national employees over the total workforce. This helps us integrate into responsible for achieving the eight goals, life span of a project and to train them in the communities in which we operate and en- progress toward achieving each goal can technical and professional skills necessary ables the long-term success of our projects. be made only through a collaborative for working on existing and future projects Training and development. We strive to effort by governments, business, devel- and operations. Over the long term, this helps provide our employees with the best career opment institutions, and civil society. us develop a pool of talented employees to opportunities in our industry and encourage meet future business needs around the world, Through our Africa Health Initiative, individual growth and achievement. In 2008, beyond supporting local operations. Educating Women and Girls Initiative, corporate and professional technical training and other initiatives such as national For example, when ExxonMobil began expenditures in our major business units content development, ExxonMobil production in Nigeria, meeting local hiring re- totaled more than $69 million and reached strategically focuses investments to quirements posed a significant challenge due over 48,000 participants. To strengthen reduce known barriers to development to the skill level and lack of training opportuni- our technical capacity, approximately and promote economic growth. In 2009, ties in the country. To date, ExxonMobil affili- 24,000 participants attended more than we plan to begin work on a project to ates in Nigeria have hired nearly 500 process, 1200 professional technical training sessions. help understand our social impacts mechanical, instrumentation, and electrical Through a combination of work assignments and contribution toward the Millennium graduates from our Technical Training Center and training, our employees develop the Development Goals. in Eket, Akwa Ibom State, Nigeria. Of the necessary leadership capabilities for perform- graduates employed, half are from the local ing effectively in a variety of workplaces. In community and the other half are from other 2008, more than 3300 employees at various Nigerian states. With a 95-percent gradua- levels of management from around the world tion rate, the Center’s apprentice program
2008 Corporate Citizenship Report 35 up close: Chad-Cameroon pipeline: Investing in local goods and services Five years after oil was first produced from the Doba Basin in southern Chad, our project continues to contribute to the economic growth and development of the country and its residents. Because Chad is a landlocked country, an underground pipeline carries crude oil from Chad to a marine shipping terminal in Cameroon. This benefits not only Chad, but also the people of Cameroon. Since development began in 2000, we have spent $1.8 billion on goods and services from approximately 2200 Chadian and Cameroonian businesses. In 2008, project spending on local goods and services totaled nearly $160 million, further contributing to a local supply chain that did not exist before the project. We also committed to hiring locally. Currently, nine out of 10 employees are Chadians and Cameroonians, with the majority working in skilled, semi-skilled, or supervisory positions. Some employees have also successfully transitioned from worker to entrepreneur. For example, one former employee founded a small environmental consulting firm in 2005, after having worked with one of our construction contractors for five years. The firm specializes in environmental impact studies and often performs baseline studies for ExxonMobil as well as a project on behalf of the World Bank. Our additional contributions to the region are far-reaching and include: • Extensive and comprehensive public consultation with some 300,000 Chadians and Cameroonians about the project’s development plans and operations; • Project contributions of more than $9 million to an array of community, educational, and environmental initiatives in Chad and Cameroon; and, • The renovation of three clinics in the oilfield development area to significantly improve health services to surrounding villages.
participated in ExxonMobil’s leadership devel- By purchasing goods and services in-country the long term. Our Best Practices in External opment training programs. Approximately and developing long-term supplier relation- Affairs (BPEA) initiative, which is part of our 25 percent of participants were women and ships, ExxonMobil supports the development Operations Integrity Management System 68 percent were non-U.S. employees. of the local business community. Our pres- (OIMS), is our strategic planning tool for ence has a multiplier effect, as our capital and global external affairs. Our commitment to training extends beyond operating expenses generate direct income ExxonMobil employees. In some cases, Because understanding and respecting local for local suppliers and contractors as well personnel from national oil companies work customs are critical for our continued pres- as indirect payments to their vendors. As a in our offices and participate in technology ence in communities, we meet with com- result, local workers have higher disposable workshops and training programs. For ex- munity leaders and associations to exchange incomes, leading to increased consumer ample, in 2008, we signed a Memorandum of information to better address local issues. spending and greater national income. As Understanding to share our training curriculum We conduct public consultations during our the capacity of local suppliers continues to with INSTEP, the education arm of Malaysia’s Environmental, Socioeconomic, and Health expand, we are increasing the amount and national oil company. In Abu Dhabi, local Impact Assessment (ESHIA) process. We value of work executed locally. nationals received formal training as well as encourage interested parties to ask questions on-the-job training, working in the ExxonMobil Our suppliers and contractors must adhere to and provide input about the current local and Technology Center, which opened in 2007. local and national laws and regulations as well socioeconomic environment and potential as the specific requirements of ExxonMobil impacts to their communities. We respond by In 2009, corporate and professional technical policies and procedures on safety, health, providing additional information, incorporating training in our major business units is planned security, human rights, and the environment, mitigation plans in our project planning, and in for approximately 50,000 participants. including the principles of our Standards of some cases, modifying aspects of the project Supplier development Business Conduct, as required in the terms design. We engage with nongovernmental and conditions of our contracts. We periodi- organizations (NGOs) to help ensure that our One of the cornerstones of our national content cally conduct audits and reviews of our sup- public consultation initiatives are as effective strategy is creating economic opportunities for pliers and contractors to ensure adherence as possible. For an example of our ESHIA in local businesses and investing in developing to our terms and conditions. Thailand, see page 9. the capabilities of local contractors, suppliers, and vendors to help them meet global Community relations Strategic community industry standards to qualify for contracts management investments with ExxonMobil and others. We promote Wherever ExxonMobil operates around the ExxonMobil strives to make positive contribu- local capacity by helping suppliers meet our world, we form collaborative partnerships tions to the communities and economies in supplier prequalification requirements, pro- and consult with community leaders to help which we operate through programs that seek viding training for entrepreneurs, and creating build economic and social capacity that to reduce barriers to development, including business opportunities for local small and benefits communities and our business over health, education, and infrastructure. This medium enterprises.
36 exxonmobil.com Based on our innovation, leadership, and commitment to building a better future, the U.S. Ambassador to Angola nominated Esso Angola for the 2007 U.S. Secretary of State’s Award for Corporate Excellence. Esso was one of 11 finalists worldwide and the only company reaching this level in Africa.
up close: allows us to have a greater impact on the long-term sustainability of communities. We Managing external affairs in Angola partner with local institutions, NGOs, govern- Esso Exploration Angola Limited (Block 15) has been applying the principles of Best ments, and development agencies to design Practices in External Affairs to manage all aspects of our external affairs, including national strategic investment programs, which not content development, government and media relations, community relations, and work- only address recognized needs, but are also force involvement. This has helped us optimize the impact and value of our outreach pro- consistent with our own business goals. For grams by better managing our relationships with Angolan stakeholders through improved example, through the ExxonMobil Foundation, understanding of their viewpoints and concerns. we provide grants to fund projects in our two signature initiatives—the Africa Health The Kizomba A, B, and C development projects spent $3.5 billion on Angolan employee Initiative and the Educating Women and salaries and purchases from Angolan vendors and suppliers. In 2008, Esso’s Block 15 Girls Initiative. maintained its high safety record and was operational 99 percent of the time—an industry- leading accomplishment. Africa Health Initiative. ExxonMobil has had We are committed to turning over line and staff jobs to qualified Angolans as soon as a presence in Africa for over 100 years and we they have developed the skills to ensure safe and efficient business operations. In 2008, have felt firsthand the devastating human toll 11 Angolans were on expatriate assignments, 88 participated in technical skill development malaria has on communities. Improving health courses overseas, and 40 were in supervisory and management positions. Over one-third is also a necessary foundation for economic of Esso Angola’s national employees were promoted to higher levels within the company growth and development, and contributes to during the year. a stable and productive workforce. From 2005 to 2008, Esso Angola increased local spending from 16 to 30 percent. In 2008, Since the inception of the Africa Health total spending to 140 local suppliers exceeded $900 million. We continue working with Initiative in 2000, we have committed over Angolan suppliers to ensure that they can meet our needs for quality, safety, and schedule. $50 million to support efforts to fight malaria In 2008, a supplier forum and training on ExxonMobil’s e-bidding system enhanced the through disease prevention, control, and competitive ability of over 300 Angolan suppliers. In partnership with CAE (an organization treatment programs. In 2008, we awarded for business support), Esso Angola conducted training sessions for more than 1300 partici- $14 million in grants to support projects pants from 350 micro-, small-, and medium-size businesses. such as NetsforLife. Building on the suc- cess of NetsforLife in Angola, ExxonMobil Esso Angola provided over $12 million in 2008 to help develop skills and capacity in supported the program’s expansion to fight public health and education. We conducted extensive consultations with a diverse range malaria in Nigeria, in 2008. The distribution of of stakeholders to ensure that our community investments help the government of Angola long-lasting, insecticide-treated bed nets has to make progress toward their national priority goals and the United Nations Millennium provided assistance to nearly 550,000 people Development Goals in these areas. in Angolan and Nigerian communities with a In 2008, Esso Angola employees and families volunteered over 1100 hours to renovate high prevalence of reported malaria cases. orphanages, churches, public health facilities, community centers, and remote schools.
2008 Corporate Citizenship Report 37 2008 ExxonMobil Community 2008 ExxonMobil Community Investments by Geographic Region Investments by Focus Area (millions) (millions)
Russia/Caspian Middle East Employee and Retiree Giving Arts and Culture $14.3 $6.6 $36.1 $8.0
Asia Pacific United States Environment Health $7.4 $144.6 $9.0 $21.9
Canada Employee Giving Public Policy Research $9.8 Worldwide Total Campaigns Worldwide Total $7.0 $225.2 $7.0 $225.2 Europe Higher Education $4.3 Pre-College Education $39.5 $38.7 Africa Civic and Community $36.1 Other Education $47.0 $11.0 Latin America $2.1
We rely on technology and innovation in every aspect of our business, and knowledge of math and science is critical in the energy sector. In 2008, we directed more than $89 million to education worldwide, making our total contribution over the last 30 years over $1.2 billion.
Research shows that when three-quarters such as bed nets; provide technical assis- Chad, Colombia, Egypt, Equatorial Guinea, of the people in a community use the nets, tance to help countries significantly increase Indonesia, Kazakhstan, Malaysia, Mexico, the incidence of malaria infection decreases, their capacity to control malaria; and monitor Nigeria, and Qatar. Our country affiliates play along with a 90-percent reduction in the and promote progress through integrated an integral role in shaping our investments by actual mosquito population. Through 2008, communications methods. ensuring that our projects align with national NetsforLife has distributed 1 million bed needs and governmental priorities. Educating Women and Girls Initiative. nets in 15 African nations and estimates that Research demonstrates that investing in the In 2008, we continued our support for the these bed nets have saved the lives of about education, training, and leadership of women Centre for Development and Population 27,000 children. and girls delivers high returns for economic Activities’ (CEDPA) Global Women in Our support is more than financial. We are and social development, including lower infant Management Program (GWIM), bringing actively partnering with governments and and child mortality rates, disease prevention, the cumulative totals to 199 ExxonMobil agencies in affected countries, empowering women’s empowerment, and higher income Foundation-funded GWIM graduates from them to combat malaria with the same disci- and productivity rates. Healthy and educated 35 countries and 45 CEDPA alumnae coaches plined, results-based business practices that communities, where all citizens are valued and from 24 countries. GWIM helps strengthen ExxonMobil employs in its global operations. productive members of society, help create a program and financial management skills stable and prosperous operating environment. of women managers working in community For example, ExxonMobil is represented Preparing women to participate competitively organizations in developing countries. In on the Board of Malaria No More. Chairman in the economy allows companies, including 2008, CEDPA conducted GWIM workshops and CEO Rex W. Tillerson co-chairs the Malaria ours, to have access to the best talent for in Nigeria, Mexico City, and Washington, D.C., Capital Campaign—a joint initiative of Malaria employee recruitment and supply chain reaching a total of 79 women as well as a No More and the Global Business Coalition. development, regardless of gender. coaching workshop for 22 women. In 2009, The Campaign supports the global malaria we plan to support four GWIM workshops action plan established by Roll Back Malaria, The ExxonMobil Foundation’s Educating in Brazil, Cameroon, Egypt, and the United which seeks to provide universal coverage Women and Girls Initiative aims to equip States as well as one coaching workshop. through malaria interventions to all African women and girls in developing countries people at risk by 2010. To support partners with the resources they need to fulfill their As the scope of our projects continues to working to overcome barriers to large-scale economic potential. In 2008, the Foundation evolve, we plan to measure and evaluate their deployment of malaria prevention tools, the made grants totaling more than $8 million— impacts and how they contribute to economic Campaign also plans to secure $100 million bringing our cumulative investment since and social development. In 2008, we started mainly through private sector contributions— 2005 to almost $20 million—to provide working with the International Center for including our own three-year, $10 million women with training, resources, and support Research on Women to refine our strategic grant. ExxonMobil funding is being used to structures to help them drive economic and focus on women’s economic development improve delivery and use of prevention tools social change in their communities. To date, and evaluate the success of our investments. we have supported programs in Angola,
38 exxonmobil.com up close: Fostering self-awareness, self-esteem, and professional development in Brazil Esso, along with CIEE (School-Business Integration Center) and CDI (Committee for the Democratization of Information Technology), formed Programa Mais to foster the personal, professional, and cultural development of low-income, Afro-Brazilian public school students between the ages of 16 and 24.
The program has trained 138 students in the art of public speaking, computer skills, entering the labor market, and preparing for college entrance exams. The program also offers cultural work- shops that include visits to universities, museums, theaters, and businesses. Visits to companies like Esso introduce students to the business world and the professional paths taken by executives. Ultimately, we plan to include Programa Mais participants in our trainee program and hire them as employees.
Community investments and Education: Focusing on talented students and teachers to enter the employee volunteerism math and science world of engineering, technology, and science. NMSI focuses on replicating proven pro- Worldwide community investments. Our ExxonMobil has a long history of support- grams with quantifiable results—such as the worldwide spending includes contributions ing and improving educational programs as Advanced Placement (AP) and Pre-Advanced to nonprofit organizations as well as funds an important business priority. In 2008, we Placement Training and Incentives ProgramsTM invested in social projects through various directed more than $89 million to education and UTeach—through a competitive process joint-venture arrangements, production-sharing worldwide, making our total contribution and to ensure those programs are sustainable agreements, projects operated by others, and over the last 30 years more than $1.2 billion. within five years. contractual social bonus arrangements. In Our strategic focus in education is on math 2008, Exxon Mobil Corporation, its divisions and science, since they are now—and will NMSI has already proven to be successful. and affiliates, and the ExxonMobil Foundation increasingly be—the universal languages of In 2008, enrollment in math, science, and provided a combined $189.1 million in cash, the global workplace, and are critical tools for English AP classes rose by nearly 60 percent goods, and services worldwide. Of the total, success in today’s high-tech world. in the 143 schools participating in the AP and $110.9 million supported communities in the Pre-AP Programs. UTeach provided full teach- United States and $78.2 million supported Key U.S. partnerships ing certification to more than 70 undergradu- communities in other countries globally. and initiatives ate majors in math, science, and computer In 2008, ExxonMobil continued investing science. UTeach is currently being implement- Employee volunteerism and giving. In 2008, heavily in math and science education in the ed at 13 universities across the country and more than 24,900 ExxonMobil employees, United States. We supported initiatives that enrollment is expected to total 5600 students retirees, and their families worldwide encourage students to take an active interest over the next five years. About 70 percent donated more than 690,000 volunteer in careers in the math and science fields, of UTeach graduates are still teaching five or hours to 5350 charitable organizations in encourage the professional development more years after entering the field, compared 30 countries through company-sponsored of highly qualified teachers, and promote with less than 50 percent nationally. volunteer programs. Of the total volunteers, involvement of women and minorities in 14,300 participants donated more than Diversity initiatives. We work to ensure that these subjects. 87,200 hours to more than 1000 organizations access to science, technology, engineering, in countries outside the United States. National Math and Science Initiative. and mathematics education is made widely ExxonMobil became a founding sponsor of the available, particularly to women and minori- Employees and retirees donated $36.1 million National Math and Science Initiative (NMSI) in ties in the United States. We continued to through ExxonMobil’s matching gift, disaster 2007 and committed $125 million to support support the Hispanic Heritage Foundation, relief, and employee giving programs. it. Since inception, NMSI has also attracted United Negro College Fund, American Indian When combined with corporate donations, more than $32 million in funding from other College Fund, National Society of Black ExxonMobil—together with its employees organizations. NMSI was launched to improve Engineers, Society of Women Engineers, and retirees—contributed $225.2 million to math and science education by preparing Society of Hispanic Professional Engineers, community investments around the world.
2008 Corporate Citizenship Report 39 up close: Supporting regional science competitions ExxonMobil’s commitment to developing education programs around the world creates excitement in young students about working in the energy sector and other math and science related careers.
France. ExxonMobil has supported Les Olympiades de la Physique (Physics Olympics) over the last three years and Les Olympiades de la Chimie (Chemistry Olympics) for the last 20 years. The Olympics transform high-school students into researchers who must defend the scientific value of their work in front of a panel of professionals. Each year, over 2500 students participate in about 27 regional competitions for the Chemistry Olympics and about 60 finalist teams participate in the national competition for the Physics Olympics.
Qatar. ExxonMobil contributed to the first national GasNa competition organized by Qatar University’s Gas Processing Center. Based on age group, students compete in the categories of poster, essay, or sci- entific experiment. In 2008, 711 students, representing 111 schools, participated in and the National Action Council for Minorities Asli schools will be provided with training the competition. Competitions such as in Engineering. The Corporation also funded to help make teaching and learning fun for this motivate students to enter the engi- programs at universities and national the children. neering field, boost the scientific capacity associations to increase the enrollment of In Egypt, ExxonMobil is actively involved in of the Qatari workforce, and develop the women and minority students in geoscience education, child welfare, and entrepreneur country’s natural resource base. degree programs. training. Through a three-year, $1 million Kuwait. Kuwait’s first ever national International grant to Save the Children’s Ishraq Program, science fair is being sponsored by education initiatives 1000 girls between the ages of 12 and 17 will ExxonMobil, Kuwait Energy Company, be given a second chance at education. ExxonMobil strives to meet educational Kuwait Motor Sports Club, and the The program also offers social sessions to needs that are specific to individual countries. Scientific Center. To generate student educate families about the importance of In the developing world, we focus on improv- interest in math and science, the best encouraging their daughters, sisters, and ing basic education and infrastructure. Local 100 entries from over 150 high schools wives to continue their education. were invited to participate in the final country affiliates evaluate local educational competition in March 2009. needs and make community investment decisions focusing on literacy, math and on the Web: Kazakhstan. ExxonMobil has supported science, girls’ access to education, and the Zhautykov National Specialized primary education. National content development highlights Physics and Math High School in exxonmobil.com/nationalcontent Kazakhstan since 2004. By updating For example, in Malaysia, geographical Africa Health Initiative the school’s computers and sponsoring remoteness, absenteeism, and high dropout exxonmobil.com/health English classes, we seek to improve the rates are some of the educational challenges Educating Women and Girls Initiative facing the children of the Orang Asli (“original students’ ability to compete for place- exxonmobil.com/womenandgirls ment in the best universities in the world. peoples”) community. ExxonMobil worked Worldwide giving In 2008, we became one of three official with UNICEF Malaysia to publish a book exxonmobil.com/contributions sponsors of the school’s International based on Orang Asli folklore to teach children Physics and Math Olympiad, which brings reading and writing skills. Besides preserving Supporting math and science education together over 200 participants from their cultural heritage, the use of traditional exxonmobil.com/mathandscience 16 countries. The Minister of Education stories is aimed at igniting the children’s National Math and Science Initiative officially recognized ExxonMobil’s con- interest in learning and attending school. nationalmathandscience.org tinuous support of educational opportu- The book will be published in early 2009 and International education initiatives nities for Kazakh students. will benefit 94 Orang Asli schools, reaching exxonmobil.com/intleducation about 13,000 students. Teachers at Orang Transparency exxonmobil.com/transparency
40 exxonmobil.com up close: Transparency initiatives The extraction of natural resources generates revenues that can foster economic growth and development. Transparency initiatives seek to strengthen accountability and good governance, reduce corruption, and promote greater economic stability.
6 Qatar 5 Fourth Global Extractive Industries Transparency Initiative (EITI) Conference Continuing the tradition of ExxonMobil speakers at the first three global EITI confer- ences, Rich Kruger, president of ExxonMobil Production Company, will be speaking at the fourth Global EITI Conference in Doha, Qatar, in February 2009. He will address how 2 4 international oil companies contribute to the economic development of countries not 3 only by supporting transparency and EITI, but also through our core economic mission and through corporate citizenship programs. 1
We believe transparency initiatives should Working to implement EITI. As part of our 4 Chad apply universally to all companies—publicly commitment to honest and ethical behavior, Since its inception, our project has been traded, private, and state-owned—with an we offer our assistance to countries seek- governed by conventions and contracts interest in a country’s extractive industries; ing to implement greater transparency and that promote transparency. Payments to the protect truly proprietary information; and disclose financial information. Chadian government have now exceeded respect the laws of a host government or $4.3 billion. This information is posted on 1 Equatorial Guinea a company’s contractual obligations. We the Esso Chad and World Bank Web sites. In ExxonMobil provided significant support to support initiatives such as the Extractive 2008, Esso Chad and TRACE International assist the government in achieving its des- Industries Transparency Initiative (EITI), the sponsored an anti-corruption conference. Group of Eight (G-8) Transparency Initiative, ignation by the EITI Board as a Candidate and the United Nations Convention Country. We drafted a Memorandum of 5 Azerbaijan Against Corruption. Understanding for engagement by all par- In 2008, the government of Azerbaijan ticipating stakeholders, reporting templates published its ninth report on its oil and gas Extractive Industries Transparency and guidelines, and a draft work plan for revenues. ExxonMobil assisted the State Initiative. Established in 2002, EITI aims to EITI implementation. ExxonMobil serves Oil Fund to develop the reporting tem- strengthen governance by improving trans- on a Steering Committee to help Equatorial plates, guidelines, and the Memorandum parency and accountability in the extractives Guinea meet its EITI validation deadline of Understanding signed by stakeholders. sector. It sets forth global principles for com- of March 2010. Azerbaijan initiated an EITI validation pro- panies to report what they pay governments cess in 2008 and is the first country, among and for governments to disclose what 2 Nigeria the 26 countries achieving EITI Candidate they receive from companies. Results of the audit of oil and gas activi- Country status, to do so. ties from 1999 to 2004 are posted on the ExxonMobil has served on the EITI Board Nigeria EITI Web site. ExxonMobil provided since 2006. In 2008, the EITI Secretariat 6 Kazakhstan advice and support for the implementation invited Chairman and CEO Rex W. Tillerson to ExxonMobil participates in the National of Nigeria’s version of EITI, which includes a co-author with EITI’s chairman the foreword Stakeholders Council, which published its first three-part audit of financials, management of the EITI Business Guide: How companies report on oil and gas revenues in Kazakhstan processes, and physical volumes. can support implementation. The Business in 2008, with a second report due out in 2009. During 2008, we presented on behalf Guide will assist international companies 3 Cameroon of the industry at Kazakhstan’s first national in conveying expectations and appropri- The government has published two reports, EITI conference. We have also been invited ate roles to affiliates around the world, on and held a meeting in 2008 to evaluate the to be part of the Kazakh delegation to reporting payments to governments for EITI process and consider EITI validation international conferences, including the natural resource extraction, and on engaging criteria. An official Cameroonian EITI Web 2009 Global EITI Conference. with governments and other stakeholders site is planned to launch in early 2009. in the implementation of EITI.
2008 Corporate Citizenship Report 41 “We actively promote human rights not just because it makes business sense, but because it is simply the right thing to do.” Ken Cohen, Vice President of Public Affairs Human Rights and Security Fostering a stable business environment
Just as ExxonMobil is committed articulates our support for the principles of Our security programs are designed to be to meeting the world’s growing the ILO Declaration, namely the elimination of flexible, especially given the dynamic threat demand for energy to power child labor, forced labor, workplace discrimi- environments in which we operate. The value economic progress, we are also nation, and the recognition of the right to of this flexibility was demonstrated numerous committed to playing an important freedom of association and collective bargain- times in 2008, as additional measures were ing. All employees are required to comply implemented during periods of heightened role in respecting and promoting with our policies. security around the globe—varying from a human rights. ExxonMobil actively pro- response to terrorist attacks in Mumbai, India We seek business partners that observe similar motes human rights, not just because doing to heightened security measures in Nigeria standards. Our standard contract language so fosters a stable and productive business following threats by militants. environment, but more importantly, because it requires adherence to all national laws and is simply the right thing to do. We believe our regulations. We pre-screen suppliers and We are enhancing private security personnel business presence can, and should, have a mandate that they comply with all applicable contracts to include language to address hu- positive influence on the treatment of people laws regarding business practices and human man rights issues. Private security contracts in the communities where we operate. rights (such as laws prohibiting child labor will include provisions requiring all personnel and forced labor). We are taking steps to to be trained on, and to act consistently with, The responsibilities of transnational cor- include specific language regarding child our Statement of Principles on Security and porations to respect human rights and the and forced labor in certain engineering, Human Rights, applicable laws, provisions of responsibility of governments to protect procurement, and construction contracts. the United Nations Universal Declaration of human rights are core principles of a policy This extra safeguard may pose additional Human Rights, the Fundamental Principles and framework issued in 2008 by John Ruggie, challenges in locating qualified suppliers; Rights at Work of the 1998 ILO Declaration, the United Nations Special Representative however, we believe these additional mea- United Nations Code of Conduct for Law on Business and Human Rights. Along with sures will raise awareness and help ensure Enforcement Officials, and United Nations other stakeholders, we participated in Special our partners and suppliers are committed Principles on the Use of Force and Firearms Representative Ruggie’s consultations on the to respecting human rights. by Law Enforcement Officials. Such language topic of business and human rights. has been incorporated into more than Security. Safeguarding company personnel 50 percent of our contracts. Our commitment to human rights is support- and property is a priority, and must be done ed by our Standards of Business Conduct, in a manner that complies with applicable Framework on Security and Human Rights. which are consistent with the spirit and intent laws and respects human rights. Our security Our Framework on Security and Human of the United Nations Universal Declaration of programs are guided by global standards, Rights provides a comprehensive set of Human Rights and with the 1998 Declaration ensuring that the measures taken are com- expectations to our majority-owned operating on Fundamental Principles and Rights at Work mensurate with local threats and in line with affiliates on how to manage interactions with of the International Labor Organization (ILO). our commitment to the communities near Our Statement on Labor and the Workplace our operations.
42 exxonmobil.com Priority issues
Human Rights. Promote respect for Security. Continue to improve security Training. Employee training is an important human rights and serve as a positive influ- measures to further enhance the protec- element of our effort to address human ence in communities where we operate. tion of people and assets while respecting rights challenges facing our industry in gen- human rights concerns. eral and specific operations in particular.
Re-elected Co-hosted the th to serve on the + % Human Rights 60 Steering 7 50 and the Oil & anniversary Committee priority affiliates of private security contracts Gas Industry of the United Nations of the Voluntary provided Conference in Universal Declaration Principles on with dedicated enhanced of Human Rights human rights to address human Latin America commemorated Security and awareness training rights issues in 2008 Human Rights
both host government-assigned security and We then developed an ExxonMobil human We also engage with external stakeholders private security providers. Implementation rights awareness training presentation and to raise awareness of regional human rights and assessment of the Framework are ongoing. provided dedicated human rights training to issues and discuss ways of addressing hu- key affiliate management and staff in seven man rights challenges. In 2008, we partnered To facilitate implementation, affiliates are pro- countries. A more general rollout will be with IPIECA and ARPEL (Latin America’s vided with material such as model guidelines conducted in other affiliates throughout petroleum association) to co-host the Human for dealing with government security forces, 2009 and 2010. Rights and the Oil & Gas Industry Conference. language for Memorandums of Understanding Nearly 90 participants from Latin American for government-provided security, and The training is based on guidance by the countries attended, including government language for contracts with private security International Petroleum Industry Environmental officials, members of local and national providers. These documents support our Conservation Association (IPIECA) and its NGOs, and representatives of global oil and efforts to promote respect for human rights member companies, but has been expanded gas companies. Topics included human rights in locations in which we do business. In 2008, to include ExxonMobil guidelines, practices, and community relations, tools to support as part of a continuing effort for improvement, and priorities. Its primary focus is to raise em- the oil and gas industry in the management global majority-owned affiliates conducted ployee awareness, educate them on company of human rights issues, the perspective of assessments of their implementation of policies and approaches, provide information the United Nations on business and human the Framework. Results of the assessment on resources, and demonstrate our commit- rights, human rights and indigenous peoples, identified areas for additional attention, and ment to promoting respect for human rights. and human rights and security. will be used to formulate further guidance Participating in external initiatives. aimed at enhancing the effectiveness of ExxonMobil has been an active participant the Framework. in the Voluntary Principles on Security and Providing human rights training. Employee Human Rights dialogue since 2002, and has training is an important element of ExxonMobil’s worked extensively with other participants to effort to address human rights challenges devise criteria and procedures for expand- facing our industry in general and specific ing and carrying on the work of the Voluntary operations in particular. By providing training Principles. In 2008, ExxonMobil was re- and raising awareness of human rights issues, elected to serve on the Voluntary Principles’ on the Web: we help prevent potential human rights abuses Steering Committee and was also selected for in countries where we operate. the Voluntary Principles’ Governance Group. Human rights policies and practices exxonmobil.com/humanrights In these leadership positions, we have advo- In 2008, we reviewed internal and external cated for a practical and inclusive approach Indigenous communities information regarding regions where a range to raising awareness of human rights and to exxonmobil.com/indigenous of potential human rights risks—such as child implementing efforts to eliminate abuses. Property rights labor, forced labor, and security—may arise. exxonmobil.com/proprights
2008 Corporate Citizenship Report 43 IPIECA/GRI Content Index Our corporate citizenship reporting was guided by the International Petroleum Industry Environmental Conservation Association/American Petroleum Institute (IPIECA/API) Oil and Gas Industry Guidance on Voluntary Sustainability Reporting (April 2005). This report also cross-references the Global Reporting Initiative (GRI) G3 Sustainability Reporting Guidelines.
Reporting Overview IPIECA /API GRI Where Reported About this report and assurance statement 2.1–4, 2.6, 2.9, 3.1, 3.4–6, 3.8, 3.12, inside cover, 44, inside back 3.13 cover, back cover Chairman and CEO statement 1.1, 4.2 1 Sustainability 1.2, EC9 2–3 About ExxonMobil 2.1–3, 2.5, 2.7, 2.9–10 4–5 Performance overview ENV-1, ENV-2, ENV-A3, ENV-3, 1.2, 4.12–13, SO5 6–7 Engagement SOC-8 2.8, 2.10, 3.2, 3.3, 4.4, 4.8, 4.14–17, SO1 8–9 Issues and indicators ECO-1, ECO-2, ECO-A2, ECO-3, ENV-1, 2.8, 3.5, 3.7, 3.9, 3.11, 3.13, EC1, SO6, 10 – 11 ENV-2, ENV-A3, ENV-3, ENV-4, ENV-A6 LA1, LA7, LA13, EN3, EN16, EN20, SOC-3, SOC-A4, H&S-4 EN22, EN23, EN30 A View to 2030 1.2 12–13
Citizenship Focus Areas IPIECA /API GRI Where Reported Corporate Governance Management systems 4.8, 4.12 14 Long-term financial resource management ECO-2, ECO-3 2.9–10, EC1 14 –15 Board of Directors 4.1–5, 4.9–10, 4.16–17 14–15, 17 Ethics SOC-2 SO3 15–16 Employment policies and practices SOC-4 EC3, LA1, LA3, LA13 16–17 Political involvement SOC-3, SOC-A1 SO5, SO6 17 OIMS in action SOC-A3, SOC-5, SOC-A4, SOC-8, 2.10, 4.11, EC7, EN14 18–19 ENV-6, H&S-1 Safety and Health Safety and health management H&S-1, H&S-2, H&S-4 4.8, 4.11, DMA-LA, LA7, LA8 20–22 Workplace health H&S-3 LA8 21–22 Product stewardship and product safety H&S-5 DMA-PR, PR1, PR3, EN26 22 Hurricane preparedness 4.11 23 Environmental Performance Managing our environmental performance ENV-6 4.8, DMA-EN 24 Assessing our surroundings ENV-A9 2.10, 4.11, EN12, EN13, EN14 24–25, 29 Designing our facilities and operations 4.8, EN26 25 Operating with integrity ENV-1, ENV-A3, ENV-A6, ENV-A7 4.11, EN8, EN10, EN20, EN22, EN23, 25–27 EN28, EN30 Restoring the enviroment EN13 27–28 Managing Climate Change Risks Reducing greenhouse gas emissions ENV-3, ENV-A8, ENV-5 3.9, EC2, EN3, EN7, EN16, EN18, SO5 30–33 from our operations Improving consumer use of energy ENV-4, ENV-A8 EN6, EN18, EN26 32–33 Economic Development National content development SOC-8 4.8, DMA-EC, EC8, EC9 34 Workforce development SOC-5, SOC-A3 EC7, LA1, LA10, L A11 34–36 Supplier development SOC-A5 4.8, EC6, EC8, EC9 36 Community relations management SOC-8 SO1 36 Strategic community investments SOC-A4, SOC-A5, SOC-8 EC8, EC9, LA8 36–38 Community investments and employee volunteerism SOC-A4 4.13, EC1 38–40 Transparency initiatives ECO-A1, SOC-A5 4.12, 4.13 41 Human Rights and Security Introduction SOC-7 DMA-HR 42 Security SOC-9 4.8, HR2, HR8 42 Providing human rights training SOC-1 HR6, HR7 43 Participating in external initiatives SOC-1 4.12, 4.13 43 On the Web Corporate Governance Guidelines 4.1–10 exxonmobil.com/governance Reporting and investigating suspected ethics violations SOC-6 exxonmobil.com/ethics Indigenous communities SOC-A6 4.12 exxonmobil.com/indigenous Property rights and resettlement SOC-A7 4.12 exxonmobil.com/proprights DMA: Disclosure on Management Approach. GRI indicators in italics are partially reported. Indicators not in italics are fully reported, but may not be fully reported in individual sections. Environmental Resources Management, Inc. (ERM) reviewed ExxonMobil’s 2008 Corporate Citizenship Report against the International Petroleum Industry Environmental Conservation Association/American Petroleum Institute (IPIECA/API) Oil and Gas Industry Guidance on Voluntary Sustainability Reporting (April 2005) and the Global Reporting Initiative (GRI) G3 Sustainability Reporting Guidelines. We found that the report contents address the indicator requirements shown in the IPIECA/GRI content index.
44 exxonmobil.com Assurance statement Scope of the assurance. Lloyd’s Register • Reviews of the data-reporting processes Quality Assurance, Inc. (LRQA) was commis- at a sample of selected operating sites to sioned by Exxon Mobil Corporation to review assess local understanding and implementa- the reporting processes used in the creation tion of reporting requirements; and, of the ExxonMobil 2008 Corporate Citizenship • A review of the processes used to aggre- Report. The objectives of the review were gate the information at the corporate level to validate the integrity of the reporting pro- for inclusion in the final report. cesses and to evaluate consistency with the following industry guidelines: Conclusions and findings. Based on the scope of the assurance and the information • IPIECA/API, Oil and Gas Industry Guidance presented for review, objective evidence was on Voluntary Sustainability Reporting (April available to support the following conclusions: 2005); and, • ExxonMobil has processes in place that • API, Compendium of Greenhouse Gas ensure sites that contribute to safety, health, Emission Estimation Methodologies for the and environmental metrics understand corpo- Oil and Gas Industry (February 2004). rate reporting obligations and are included in The scope of the assurance was limited to corporate safety, health, and environmental processes for the reporting of safety, health, reporting; and environmental core IPIECA performance • The methods used for calculating each met- indicators and ExxonMobil-selected additional ric are clearly defined and communicated; indicators. Verification of data accuracy was not included in the review scope. ExxonMobil • Data collection begins at the operating site fully acknowledges its sole responsibility level and is ultimately collated and combined for the accuracy of all information contained into Corporation-wide metrics; within the report. • Processes are in place to ensure that the Approach. The assurance was based on quantitative indicators are checked for com- interviews with key personnel to identify the pleteness, consistency, and accuracy; processes in place to fulfill the IPIECA indica- • Responsibility for annually reviewing and tors followed by reviews of the processes updating reporting guidelines is clear and for collecting, compiling, and reporting these improvement in methodology is regularly indicators at the corporate, functional busi- undertaken; ness, and operating unit levels. • Guidelines for greenhouse gas emissions These reviews comprised: reporting are consistent with, and specifically • A review of the reported information to refer to, the API, Compendium of Greenhouse confirm the inclusion of all core safety, health, Gas Emission Estimation Methodologies for and environmental performance indicators the Oil and Gas Industry (February 2004); and, referenced in the IPIECA/API Guidance; • LRQA believes the ExxonMobil reporting • A review of the documented reporting system is effective in delivering safety, health, requirements against the applicable industry and environmental indicators that are useful guidelines to assure consistency of scope, for assessing corporate performance and definition, and reporting for each of the for reporting information consistent with relevant indicators; IPIECA/API Guidance. • A review of the reporting processes at headquarters and at each of the functional business levels to evaluate the processes used to assure completeness, consistency, Thomas F. Sliva and accuracy of metrics reporting across On behalf of Lloyd’s Register Quality ExxonMobil’s global operations; Assurance, Inc. April 9, 2009
Lloyd’s Register, its affiliates and subsidiaries, and their respective officers, employees, or agents are, individually and collectively, referred to in this clause as the “LR Group.” The LR Group assumes no responsibility and shall not be liable to any person for any loss, damage, or expense caused by reliance on the information or advice in this document, or howsoever provided, unless that person has signed a contract with the relevant LR Group entity for the provision of this information or advice, and in that case, any responsibility or liability is exclusively on the terms and conditions set out in that contract. Corporate Headquarters 5959 Las Colinas Blvd. Irving, Texas 75039-2298 exxonmobil.com
ExxonMobil is a publicly traded company. The New York Stock Exchange (NYSE) is the principal exchange on which Exxon Mobil Corporation common stock (symbol XOM) is traded. Worldwide, ExxonMobil markets fuels and lubricants under three brands.
Printed entirely on 100% post-consumer recycled paper. SP-122