2011 Corporate Citizenship Report CONTENTS 1 2 4 6 7 8 Letter from About The Outlook Report Engagement Performance the Chairman ExxonMobil for Energy: Philosophy and Data and CEO A View to 2040 Materiality 10 12 20 Operations Environmental Case Study: Integrity at Performance Technology Kearl Environmental stewardship Biodiversity and ecosystem services Freshwater management Spill performance Emissions and waste Site remediation 22 26 32 Managing Safety, Health, Corporate Climate and the Governance Change Risks Workplace Mitigating GHG emissions in our operations Personnel safety Board of Directors Energy effi ciency Process safety Shareholder relations Cutting-edge technology Product stewardship and safety Ethics Responsible product use Workplace security Global management standards Public policy debate Employee health Political advocacy and contributions Employment policies and practices 36 Business Procurement 38 44 Case Study: Economic Human Integrity in our Development Rights and Supplier Supply Chain Managing Community Impacts Contributing to economic growth Community impacts and relationships Transparency Respecting human rights National content development Labor practices Community investments Addressing security concerns Employee volunteerism and giving Indigenous peoples Citizenship Focus Areas Environmental Performance Ms. Erica Bauer Nevas 48 50 Environmental stewardship through responsible Feedback management Corporate Citizenship Operations IPIECA/GRI Biodiversity and ecosystem services Please visit ExxonMobil Hydraulic fracturing exxonmobil.com/ Integrity in Content Index Freshwater management 800 Bell St. Spill performance citizenship Houston, Texas 77002 Downstream and Assurance Emissions and waste Site remediation citizenship@ Case study: Technology and Chemical Managing Climate Change Risks exxonmobil.com Mitigating GHG emissions in our operations Developing cutting edge technology 2011 Corporate Citizenship Report 1 LETTER FROM THE CHAIRMAN AND CEO, EXXON MOBIL CORPORATION “Our greatest strength is developing the technology and techniques that maximize value while increasing safety, effi ciency, and environmental performance.” Rex W. Tillerson, Chairman and CEO Keynote Address at CERAWeek, March 9, 2012 In an era of global change and market volatil- and at our integrated refi nery and chemical a number of ways. On the issue of climate ity, one thing is certain: citizens around the facility in Singapore (page 48), we are apply- change, for example, we participated as an world will continue to seek economic and ing our global management standards to help observer in the United Nations Framework social progress to build a better quality of life us engage communities, and improve envi- Convention on Climate Change meeting for themselves and their families. The role of ronmental and safety performance. We hope in Durban, South Africa (page 25), and we secure, reliable, and affordable energy in sup- these “site visits” will provide you, our reader, maintain ongoing discussions with legislators porting these aspirations will be critical. with a clearer understanding of our practices. and offi cials on policy and technology options to address rising greenhouse gas emissions. At ExxonMobil, we are proud of the role we In communities where we are producing shale play in supplying the energy to meet the Comprehensive risk management natural gas, we are working with city councils, world’s needs. These needs are expected to Risk management is another key element in neighbors, homeowners, and regulators to grow by about 30 percent by 2040, as econo- our approach to corporate citizenship. Few open lines of communication and share facts mies expand and the world’s population industries are called upon to manage as and information (page 14). In nations around the approaches 9 billion people. Providing this many complex risks as the energy sector. world, we are reaching out using engagement energy in a safe and environmentally respon- ExxonMobil has operations around the world, methods as diverse as the communities where sible manner, and at the enormous scale that in some of the harshest climates and environ- we operate. For instance, in countries like will be required, is one of the great challenges ments. What makes our business successful is Papua New Guinea, we have developed out- facing the world in the coming decades. our commitment to carefully and systematically identify, plan for, and manage risk. We do this reach strategies that are sensitive to the local This Corporate Citizenship Report explains through a rigorous management approach— culture and customs (page 47). This report itself how ExxonMobil is playing its role in meeting our Operations Integrity Management System, is part of our commitment to engagement with this challenge. In it, we document our plans, or OIMS, outlined on page 35. OIMS integrates those who take an interest in our company. initiatives, and performance related to safety, safety, security, health, environmental, and In the following pages, you will fi nd a the environment, economic development, social risk management into every aspect of summary of our efforts to communicate with corporate governance, and social progress. our business. This year, some of the trends stakeholders on our shared priorities; these in our safety and environmental performance include responsible unconventional resource Integrity in action did not meet our expectations and we are development, water use, biodiversity, trans- As you will read in this report, ExxonMobil’s taking action to address them. We will not stop parency, and our dialogue and engagement approach to business and corporate citizen- working to achieve our goal of driving acci- with indigenous communities, among others. ship is built upon a commitment to integrity in dents and incidents with a real impact to zero. In each case, we know that engagement on everything we do. Simply put, integrity is a com- these items leads to stronger, more sustain- mitment to do the right thing, the right way, every Stakeholder engagement able business performance. time—from business operations and technical Finally, our commitment to corporate challenges to the way we manage our business At ExxonMobil, we believe that high standards citizenship is fundamental to our business, partnerships and engage with stakeholders. and clear metrics are critical to discharging government, and community relationships. our responsibilities as a leading global energy Integrity in our industry makes us more respon- The need for energy—vital for economic producer and corporate citizen. We invite you sible, more innovative, and more productive. development and human progress—must to read about our citizenship performance in In the decades ahead, we believe this will be met while addressing environmental and this report, and we welcome your comments. be essential for meeting the world’s energy social impacts associated with increasing needs—and for fulfi lling our responsibility to demand for energy resources. future generations. We believe addressing this dual challenge This year’s report includes two case studies requires constructive and respectful engage- Rex W. Tillerson that demonstrate integrity in action. At our ment with our stakeholders. We do this in Chairman and CEO Kearl oil sands project in Canada (page 10) 2 exxonmobil.com About ExxonMobil Taking on the world’s toughest energy challenges. Using innovation and technology, ExxonMobil delivers energy and petrochemical products to meet the world’s growing demand. Our employees, operations integrity, technical expertise, fi nancial strength, and global reach provide a competitive advantage across the companies that make up our Upstream, Downstream, and Chemical business lines. Within these businesses, we operate facilities or market products in nearly all of the world’s countries and explore for oil and gas on six continents. Our extensive research and development programs support our operations, enable continuous improvement in each of our business lines, and explore new and emerging energy sources and technologies. ExxonMobil’s 2011 Global Economic EXXONMOBIL PROCESSES AND MANAGEMENT SYSTEMS Contribution Capital and Shareholder Across ExxonMobil’s global operations, we use consistent management standards to help exploration distributions ensure operations integrity and support our decision-making. These systems—a selection expenditures $29 billion $37 billion of which is highlighted below—set high expectations for operating excellence at our sites. Operations Integrity Management System Upstream Socioeconomic Management $226 billion (OIMS). Establishes common expectations Standard. One of the Environmental for addressing safety, security, health, envi- Management Standards, this framework ronmental, and social risks. OIMS provides helps the upstream companies manage a systematic, structured, and disciplined socioeconomic issues from exploration and Government Production, taxes and manufacturing, and approach to measure progress and track production to decommissioning (page 45). duties office expenses accountability across business lines, facili- $108 billion $52 billion Environmental Business Plans. ties, and projects (page 35). Corporate-wide framework for addressing Standards of Business Conduct. environmental requirements and expecta- Defi ne the global ethical conduct of the tions as part of the annual business cycle Oil and Gas Industry Contributions Corporation and its majority-owned