2015 Corporate Citizenship Report

This Corporate Citizenship Report provides a view of how we work to help power the world’s progress.

Corporate Citizenship Report

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Chairman’s letter

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About ExxonMobil

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Global operations

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Powering the world’s progress

Managing climate change risks • Engaging on climate change policy • Developing future technology • Mitigating greenhouse gas emissions in our operations • Developing solutions that reduce greenhouse gas emissions for customers

Environmental performance • Environmental management • Biodiversity and

The Outlook for Energy

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Sustainability

Safety, health and the workplace • Safety • Emergency preparedness and response

9 Engaging with stakeholders 10 External Citizenship Advisory Panel 12 ExxonMobil’s key sustainability issues and challenges

ecosystem services • Water management • Spill performance • Air emissions • Environmental compliance • Rehabilitation and decommissioning 88 About this report 89 Materiality 90 Performance data 93 IPIECA/GRI content index 94 Assurance statement

Case Study: ExxonMobil’s research and development initiatives

Case Study: ExxonMobil’s

• Workplace security • Health and wellness • Workforce

Operations Integrity Management System

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71

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Community and social impact • Respecting human rights • Managing community engagement • Strategic community investments

Local development and supply chain management • Local economic growth and development • Supply chain management

Corporate governance

Case Study: Technological innovations in Arctic wildlife protection

Case Study: New country entry in Guyana for the Upstream business

• Ethics and integrity • Board of directors • Shareholder relations

In December 2015, students at the Federal Housing Estate Primary School in Lagos, Nigeria, learn about malaria prevention and proper bed net use through Grassroot Soccer’s community- based program. To learn more about this program, see page 69.

Throughout the report, additional content is available by clicking the icons shown on the left.

Web Video

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Table of contents

exxonmobil.com/citizenship

Chairman’s letter Energy makes life as we know it possible. Energy provides the fundamental underpinnings for quality of life. Energy powers the world’s economies and allows us to improve our standards of living. ExxonMobil’s core mission is to power the world’s progress by expanding energy supplies safely, securely and responsibly. We believe our industry will be instrumental to meeting a fundamental and universal human need. Our successes are a reminder that new technologies and proven techniques are the key to unlocking abundant sources of energy. We uphold the highest standards of safety and environmental protection in supplying the world’s energy. Our work enables billions to access the energy that supports their livelihoods. We understand the need to thoughtfully invest to expand the benefits of modern energy while protecting the environment and addressing the impacts of rising greenhouse gas emissions and climate change. This Corporate Citizenship Report provides a view of how we work to help power the world’s progress. It shares our priorities and our plans for the future. It provides data and examples that chart our progress and describe our approach. Some of the highlights related to our priorities include: Safety, health and the workplace. The effort to develop energy resources takes our company to some of the most difficult and challenging places on earth. We make a commitment to do the right thing, the right way, every time each employee and contractor does his or her job. In 2015, we continued our journey toward our goal of Nobody Gets Hurt . We will never stop working to achieve and sustain this goal. Managing climate change risks. Managing the risks of climate change is an important responsibility for our business and society at large. We believe that sound policy, free markets, innovation, technology and efficiency are essential in addressing the risks of climate change. We continue to advance research and development, leading to innovation in areas such as advanced biofuels, carbon capture and sequestration, and energy efficiency. Managing our own greenhouse gas emissions is a core element of our operations. We have and will continue to engage relevant stakeholders to further develop climate science and broaden its understanding by society at large.

Environmental performance. Rigorous, science-based environmental management is a critical element of what we do. Protect Tomorrow. Today. sets the principles that guide our efforts to protect biodiversity, manage water use and air emissions, avoid spills, decommission sites and rehabilitate the environment. Community and social impact. Maintaining respect for human rights, responsibly managing our impacts on communities and making valued social investments are integral to the success and sustainability of our business. In 2015, we contributed $268 million to communities around the world, focusing on areas such as improving education, combating malaria and advancing economic opportunities for women. ExxonMobil’s local content and supply chain management strategies are designed to deliver lasting and shared value to host countries, local communities and our business. Governance. Upholding the highest ethical standards of business conduct is critical to maintaining our global license to operate. A commitment to ethics and integrity is the foundation of our corporate culture. We seek to maintain the highest anti-corruption compliance in all aspects of our operations. The challenge of powering the world’s progress is one that defies simple solutions. There are many stakeholders with strongly held views and differing opinions. We work to understand them and strive to strike an appropriate balance that maximizes the benefits to society. The approach we take will be grounded in facts and science, and will be guided by practical choices backed by human ingenuity. The good news is that practical options to meet people’s needs for reliable, affordable energy continue to expand. I’m pleased to share this Corporate Citizenship Report to show how we approach these challenges, the actions we’re committed to taking and the performance of the capable men and women who make up ExxonMobil.

We continue to encourage feedback from all of our stakeholders at exxonmobil.com/citizenship.

Rex W. Tillerson Chairman and CEO

Chairman’s letter

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exxonmobil.com/citizenship

About ExxonMobil As a global provider of energy, ExxonMobil’s core mission is to safely and responsibly deliver the energy needed to power the world’s economic, social and technological progress. Every day, we work to do this with integrity, ingenuity and a commitment to good corporate citizenship. We recognize the significant responsibilities we have to our shareholders, neighbors, customers and communities as we find ways to bring affordable energy to a global market. We believe our employees, technical expertise, financial strength, global reach and disciplined approach provide ExxonMobil an advantage in addressing the challenges of meeting global energy demand. As the world’s largest publicly held oil and gas company, ExxonMobil has a diverse portfolio of high-quality assets, projects and resources across our Upstream, Downstream and Chemical businesses. We seek to maintain a balanced portfolio of opportunities to ensure profitable growth through a wide range of investment and geopolitical environments.

ExxonMobil’s integrated businesses

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Chemical ExxonMobil Chemical is one of the largest chemical companies in the world. Our unique portfolio of commodity and specialty businesses delivers superior returns across the business cycle. We manufacture high-quality chemical products in 16 countries. Our products serve as the building blocks for a wide variety of everyday consumer and industrial products.

Downstream Our balanced Downstream portfolio includes refining facil- ities in 14 countries. We are one of the largest integrated refiners and manufacturers of lube basestocks and a leading marketer of petroleum products and finished lubricants. Our high-quality products, combined with a strong global refining and distribution network, position us as a premier global supplier.

Upstream Our Upstream business encompasses high-quality exploration opportunities across all resource types and geographies, an industry-leading resource base, a portfolio of world-class projects and a diverse set of producing assets. We have an active exploration or production presence in 36 countries.

5.8 million barrels of petroleum product sales per day 2

24.7 million metric tons of prime product sales 3

4.1 million oil-equivalent barrels of net oil and gas production per day 1

1 Gas converted to oil-equivalent at 6 million cubic feet = 1 thousand barrels. 2 Petroleum product sales data reported net of purchases/sales contracts with the same counterparty. 3 Prime product sales are total product sales excluding carbon black oil and sulfur. Prime product sales include ExxonMobil’s share of equity company volumes and finished-product transfers to the Downstream.

About ExxonMobil

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exxonmobil.com/citizenship

Global operations As the world’s largest publicly held oil and gas company, ExxonMobil has a diverse and balanced portfolio of high-quality operations, projects and new opportunities across our Upstream, Downstream and Chemical businesses.

nstream

Downstream Upstream

Downstream Up t Chemical

Upstream Chemical

Chemical

United Kingdom

Singapore

Locations as of December 31, 2015. Map indicates major Upstream, Downstream and Chemical operating assets.

Alaska, United States

Guyana

Angola

About ExxonMobil

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exxonmobil.com/citizenship

Energy is integral to our lives in the 21st century.

Powering the world’s progress

Global economic flows from ExxonMobil in 2015

To put that number into perspective, the ExxonMobil-operated Hebron project in eastern Canada will produce approximately 700 million barrels of oil over the course of 30 years, enough to satisfy about three days of current global demand. For informa- tion on the global, economic, social and technological factors that determine the world’s energy needs, see the discussion on our Outlook for Energy on the following page. In addition to providing oil and gas resources, we strive to make significant contributions around the world through our capital and exploration expenditures and investments in research and development, as well as our community investments and local content development. In 2015, our capital and exploration expenditures, shareholder distributions, production, manufacturing and office expenses, and government taxes and duties totaled $149 billion. For more in-depth analysis of our financial performance and investment decisions, see our 2015 Summary Annual Report and 2015 Financial and Operating Review .

Billions of dollars

Capital and exploration expenditures $ 31

At every link in the energy supply chain, ExxonMobil seeks to advance innovation and technology to deliver the energy the world needs — to support growth, opportunity and progress for all citizens. Powering the world’s progress means expanding the benefits of modern energy while protecting the environment and addressing the impacts of greenhouse gas emissions and climate change. ExxonMobil’s approach to powering the world’s progress is founded on our core belief that a relentless pursuit of operational excellence, coupled with the power of science, technology and engineering in the hands of people with integrity, can solve even the most challenging problems. ExxonMobil plays a key role in providing the energy needed for continued economic prosperity and human progress. The immense size of global energy needs can be difficult to concep- tualize. Global energy demand in 2015 is estimated to be about 560 quadrillion British thermal units (BTUs), equivalent to about 12 billion gallons of gasoline daily, and this number is increasing.

Government taxes and duties $ 58

Shareholder distributions $ 15

Worldwide total $ 149

Production, manufacturing and office expenses $ 45

ExxonMobil 2015 Summary Annual Report

ExxonMobil 2015 Financial and Operating Review

ExxonMobil is a significant contributor to the global economy. In 2015, global economic flows from ExxonMobil totaled $149 billion, with the highest contribution in government taxes and duties.

exxonmobil.com/citizenship Powering the world’s progress

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The Outlook for Energy Energy matters to everyone, and we all play a role in shaping its future. Understanding the factors that drive the world’s energy needs, and likely choices to meet those needs, is the mission of ExxonMobil’s Outlook for Energy . By sharing the Outlook with the public, we hope to broaden that under- standing among individuals, businesses and governments. Every day, all over the world, energy makes modern life possible. We rely on it for food production, mobility, shelter, security, communication and modern health care. Energy also drives growth, opportunity and progress. The global population is projected to rise to 9 billion in 2040, while economic growth in China, India and other non-OECD 4 countries will enable significantly more people to improve their living standards. We estimate that global energy demand will be 25 percent higher in 2040 than it was in 2014, led by a 45 percent increase in non-OECD countries. Improved living standards will require meeting the world’s energy needs while managing the environmental impacts of energy use, including climate change. Practical options to help meet the needs for reliable, affordable and cleaner energy continue to expand. We expect that as efficiencies improve and society shifts toward lower-carbon fuels, the amount of energy-related carbon dioxide (CO 2 ) emissions per dollar of global gross domestic product (GDP) will be cut in half by 2040. We update our long-term energy outlook each year, taking into account the most up-to-date demographic, economic and technological information available. The following are some highlights from this year’s Outlook for Energy : • Energy is fundamental to standards of living — As incomes rise, billions of people in developing nations will rise into the middle class; many will be able to afford amenities such as temperature-controlled homes, cars and appliances. In 2014, there were about 10 cars per 100 people in China. By 2040, this number is expected to rise to about 30 cars per 100 people. • Developing nations will lead gains in GDP and living standards — We expect that China, India and many other developing nations will see strong growth in GDP and

Global fuel demand in 2040 — projections

Quadrillion BTUs Energy demand

Quadrillion BTUs

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Average annual growth rate 2014–2040 Average of all fuel types: 0.9%

0.7%

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Energy savings

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-0.2%

2014 2040

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Rest of world

600

India Key growth

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400

0.3%

2.9%

China

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200

4.8%

1.3%

OECD32 4

0 2000 2020 2040

0

Oil

Gas

Coal Biomass Nuclear Solar/ wind/ biofuels

Hydro/ geo

• Natural gas grows more than any other energy source — Demand for natural gas is growing rapidly, in part due to its abundance and ability to meet a wide variety of needs as the cleanest-burning major fuel. Around 40 percent of the growth in global energy demand from 2014 to 2040 is projected to be met by natural gas. • Technology has the highest potential and the greatest uncertainty — Advances in technology have tremendous potential to help meet our energy and environmental goals, but the pace of change is difficult to predict. There is also significant emphasis on technological advances to improve energy efficiency. Global average fuel economy for light- duty vehicles is expected to improve by 80 percent from 2014 to 2040, reflecting advances in technology.

living standards to 2040. Per capita income in non-OECD nations is expected to rise by about 135 percent between 2014 and 2040; in OECD nations, it is expected to rise almost 60 percent. • Economics and policies will impact the energy mix — Increasingly, the mix of fuels that consumers use to meet their energy needs will be reshaped by economics, tech- nology and government policies. In general, demand will shift toward cleaner fuels like natural gas, renewables and nuclear. The share of the world’s electricity generated by coal will likely drop to about 30 percent in 2040, from more than 40 percent in 2014. • Oil will remain the world’s primary fuel — We expect oil to continue to be the world’s leading energy source, driven by demand for transportation fuels and by the chemical industry. One-third of the world’s energy is expected to be provided by oil in 2040.

The Outlook for Energy: A View to 2040

4 The Organization for Economic Cooperation and Development. Refer to the Organization for Economic Cooperation and Development website ( oecd.org ) for a listing of its members.

exxonmobil.com/citizenship The Outlook for Energy

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Sustainability ExxonMobil is faced with the complex challenge of providing the energy needed to support economic growth and improved standards of living while balancing impacts on society and the environment. ExxonMobil views corporate citizenship as a key component of sustainable development. By designing our approach to corporate citizenship around six key areas, we contribute to society’s broader sustainability objectives and manage the impact of our operations on local economies, societies, climate and the environment. These six areas of corporate citizenship — which include safety, health and the workplace; managing climate change risks; environmental performance; community and social impact; local development and supply chain management; and corporate governance — are discussed in detail throughout this report. We are committed to aligning our long-term business objectives with these areas of corporate citizenship. As a global provider of energy, our primary objective is to responsibly meet the world’s energy needs while increasing shareholder value. To help evaluate the success of our corporate citizenship initiatives and cultivate strong investor relations, we employ eight strategies that help guide and measure our commitment to good corporate citizenship and address society’s diverse sustainability objectives. These strategies include: Powering the world’s progress depends on developing and retaining a world-class workforce. By pairing technical expertise and industry-leading research capabilities, ExxonMobil is able to identify and develop the high-quality oil and gas resources needed to help sustain economic development. We are also committed to developing innovative products and services that deliver superior performance for consumers and long-term value for shareholders. We make strategic decisions on issues that directly affect the sustainability of our business. Our diligent investment and cost discipline approach allows us to execute deals with attractive valuations in a competitive industry environment. We work to deliver complex, integrated projects on time and on budget. Our goal is to maintain a diverse and balanced portfolio of high-quality resources, projects and assets across our businesses. In every aspect of our business, we work to sustain safety, reliability and environmental stewardship of our operations through an unwavering commitment to operational excellence. We apply a systematic approach to identifying, evaluating and managing risks across our operations and relentlessly work to be the partner, neighbor, employer and supplier of choice around the world. For information on how our Operations Integrity Management System guides risk management throughout our operations, see page 15. • Project execution • Risk management • Technology leadership • World-class workforce • Integration • Investment and cost discipline • Operational excellence • Portfolio management

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Sustainability

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Papua New Guinea Prime Minister Peter O’Neill on board the Spirit of Hela for loading of the first liquefied natural gas cargo. ExxonMobil is committed to engaging with stakeholders wherever we operate.

Engaging with stakeholders As a global company, our business directly affects and is directly affected by many people, organizations and communities around the world. For a company of our size, building and maintaining relationships with a diverse group of stakeholders are both priorities and ongoing challenges. Energy issues are complex and our stakeholders represent multiple viewpoints. The discussions we undertake with our stakeholders help us understand a variety of perspectives. Regular stakeholder engagement helps us continue to improve our company and remain a responsible corporate citizen. We interact with our stakeholders using a variety of mecha- nisms, including community meetings, Web and social media content, corporate publications, and one-on-one and group discussions, among others. We include examples of stake- holder engagement throughout this report. While ExxonMobil recognizes that our stakeholders may have a diverse set of interests, the following list demonstrates our different stake- holders and their typical areas of interest.

Employees • Benefits; diversity; development opportunities; safety, health and wellness Customers • Product safety and sustainability; supply chain management; greenhouse gas emissions Suppliers • Expectations for suppliers; expanding local supply network; supplier diversity Communities • Community development; economic development; grievance management; human rights; operational impacts

Governments • Taxes; local supplier development; job creation; impact assessments; ethics; education Non-governmental organizations • Biodiversity; water management; climate change; air quality; transparency Shareholders • Governance practices; board composition; policy engagement; sustainability

exxonmobil.com/citizenship Engaging with stakeholders

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External Citizenship Advisory Panel

2015 commentary We appreciate the wide scope of reporting and the number of issues included in this report. In particular, we recognize the company’s ongoing work to provide additional performance data to back up statements made in the report. The country- specific case studies are effective in providing readers with relevant examples that demonstrate how ExxonMobil’s policies and approaches are employed. While we believe that the report’s scope is extensive with many interesting and appropriate stories, there are several areas where we have recommendations for the company’s future reporting efforts. Climate change In his introductory statement, Chairman Tillerson mentions that “managing the risks of climate change is an important responsibility for our business and society at large.” However, as a whole, the report needs greater clarity regarding the breadth and effectiveness of the company’s steps to address those risks. energy efficiency in its own operations, ExxonMobil describes considerable progress. However, the largest contribution to greenhouse gas emissions comes not from ExxonMobil’s internal operations, but from the use of its products. If society is to take significant actions to reduce the risks of climate change, which ExxonMobil states as an important responsibility, it must adopt appropriate public policies that reduce greenhouse gas emissions from fossil fuels. Future reports would benefit from more specificity about the company’s support for a carbon tax, as well as its engagement on other policy issues in the United States and internationally. Additionally, we would encourage the company to discuss more fully its continued focus primarily on oil and gas, relative to plans for moving toward lower-carbon sources of energy. Many of the world’s leading companies — including some in the oil and gas sector — are publicly announcing science-based goals to transition their businesses toward With regard to the topics of climate-related research, the development of innovative technologies, and improving

a low-carbon economy. As investors and stakeholders increasingly call for disclosure of corporate strategic goals, we believe ExxonMobil would benefit from becoming a leader in this regard. The generation of methane emissions is another issue where we believe the company could describe its efforts more broadly. The Up Close example on page 37 provides insight into XTO Energy’s efforts to reduce methane emissions at its hydraulic fracturing sites throughout the United States. We would welcome a broader description of ExxonMobil’s efforts to reduce these emissions. First, what are the company’s efforts to reduce methane emissions in its other operations worldwide? Second, we would welcome learning of the company’s stance on various public policy options to reduce these emissions, including whether there are any U.S. federal or state regulations that it supports or is actively advocating. Human rights and social reporting While we understand that social reporting lags behind environmental, safety and economic reporting across all sectors, we believe ExxonMobil could discuss its approach to respecting human rights across its operations and in its supply chain in greater depth and with more specificity. For example, we would like to see ExxonMobil describe its approach to upholding the Voluntary Principles on Security and Human Rights in the report. We commend the company for assuming a leadership position on the steering committee of the Voluntary Principles in 2015. As we recommended last year, we would like the report to reflect greater rigor in presenting its approach and the outcomes of its efforts to respect security and human rights, especially using metrics to evaluate its performance vis-à-vis other companies. We appreciate the reporting on outcomes of ExxonMobil’s community investment initiatives, particularly the malaria examples described on pages 69–70, and the company’s support for women’s economic empowerment. In future reports, we would like the company to provide insight on how the grievance mechanisms at its various projects are used in practice.

ExxonMobil has engaged an External Citizenship Advisory Panel (ECAP) since 2009 to provide an annual independent review of the company’s corporate citizenship activities, including this report. ECAP members are experts in social and environmental topics and are leading academics, non- governmental organization (NGO) representatives and former government employees. Each year, the ECAP reviews a draft of this report and provides feedback, which we evaluate and incorporate into the report as appropriate.

ECAP statement on 2015 Corporate Citizenship Report

To the readers of this report,

We are pleased to share our independent opinion on ExxonMobil’s 2015 Corporate Citizenship Report . Over the course of our engagement period in 2015–2016, we participated in teleconference, email and in-person discussions with ExxonMobil’s corporate citizenship team and subject matter experts. While the Panel’s mandate includes engaging with the company on policy and strategy issues, this statement focuses on its transparency efforts through reporting. We had an opportunity to review and provide feedback on a draft of the report, some of which was adopted. We hope that ExxonMobil will consider the remainder of our feedback to inform its future corporate citizenship reporting. This letter is not an official endorsement of the report, the corporation or its policies, but rather our individual and collective views on the quality and progress made in ExxonMobil’s citizenship practices and reporting. In recognition of substantial time spent during the engagement period, ExxonMobil provided a donation on behalf of the panelists to nonprofit organizations of our choice and reimbursed ECAP-related travel expenses.

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External Citizenship Advisory Panel

exxonmobil.com/citizenship

Role of suppliers, contractors and other partners We commend the ongoing work that the company is undertaking to better understand and influence the environmental, social and human rights performance of the companies with which it does business. We recognize there are thousands of such companies as well as other partners that are working with ExxonMobil, but feel that the company could further describe how it is working proactively with these entities to improve their sustainability performance, both individually and collectively. Comparison and benchmarks ExxonMobil provides useful industry benchmarking data for its annual safety performance data. However, outside of this topic,

year, and we look forward to sustained engagement to identify and discuss other opportunities for continual improvement.

ExxonMobil does not give the readers of this report adequate context to determine the company’s performance relative to others in the industry. We would recommend that ExxonMobil consider including industry benchmark information around its other material issues. In addition, we would recommend ExxonMobil further enhance its descriptions on performance and progress made compared with prior years. Conclusion We are grateful for the opportunity to provide our collective feedback on ExxonMobil’s transparency and disclosure efforts directly in this report. We are encouraged to see that the company’s reporting continues to evolve and improve each

Sincerely,

Mark Cohen Sarah Labowitz Frank Loy

Jane Nelson Salil Tripathi

April 11, 2016

Frank Loy Former Under Secretary of State for Global Affairs U.S. Department of State

Mark Cohen Professor of Management and Law Vanderbilt University Owen Graduate School of Management

Salil Tripathi Senior adviser, global issues Institute for Human Rights and Business

Sarah Labowitz Co-director of Center for Business and Human Rights New York University Stern School of Business

Jane Nelson Director of Corporate Responsibility Initiative Harvard University Kennedy School of Government

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External Citizenship Advisory Panel

exxonmobil.com/citizenship

ExxonMobil’s key sustainability issues and challenges Our stakeholders are increasingly interested in how we are incorporating sustainability and addressing challenges in our everyday operations. Suzanne McCarron, ExxonMobil vice president of public and government affairs, answers some of these questions from stakeholders in the discussion below. With low oil prices and concerns about stranded assets, does ExxonMobil have any plans to diversify its energy mix? We believe prices over the long term will continue to be driven by market supply and demand, with the demand side largely being a function of global economic growth. On the supply side, prices may be significantly impacted by political events, the actions of OPEC and other large government resource owners, and other factors. To manage the risks associated with price, ExxonMobil evaluates annual plans and all investments across a wide range of price scenarios. Our assessment is that operations will exhibit strong performance over the long term. This is the outcome of disciplined investment, cost management, asset enhancement programs and application of advanced technologies. Our analysis confirms our long-standing view that all energy sources are necessary to meet rising global energy demand and to support improving living standards worldwide. All of ExxonMobil’s current hydrocarbon reserves will be needed, along with substantial future industry investments, to address global energy needs. ExxonMobil’s Outlook for Energy and all credible forecasts, including that of the International Energy Agency, predict that carbon-based fuels will continue to meet about three-quarters of global energy needs through 2040. We also have a team within the company — the ExxonMobil Emerging Technologies team — that studies every aspect of the energy business, from oil and natural gas to alternatives. It looks into areas outside our company’s current business focus. If a technology could have a material effect on the future of energy, the Emerging Technologies team works to understand and evaluate it. We work hard to keep our research aperture wide.

At the same time, we urge them to recognize important shared humanitarian needs, including providing reliable and affordable energy to improve living standards. As a global issue, climate change requires global solutions. Both developed and developing countries must now work together in crafting policies aimed at mitigating greenhouse gas emissions, while recognizing differing national priorities.

What is ExxonMobil doing to address the risks of climate change?

We believe the risks of climate change are real and warrant thoughtful action. Climate change is a global issue that requires the collaboration of governments, companies, consumers and other stakeholders to create global solutions. ExxonMobil continues to support and contribute to efforts to reduce greenhouse gas emissions. For more than three decades, we have continuously funded and participated in research to improve understanding of climate science, often in conjunction with government bodies and leading research universities. This has resulted in hundreds of publicly available documents on climate-related topics, including more than 50 peer-reviewed publications. We promote discussion on issues of direct relevance to the company and contribute to a wide range of academic and policy organizations that research and promote dialogue on significant domestic and foreign policy issues. We value scientists and research, and we collaborate with the world’s smartest minds in partnership with more than 80 universities around the world. With more than 2,200 Ph.D. scientists and engineers and more than 5,000 employees at our research and technology divisions around the world, we work day in and day out to explore the new energy solutions of the future. We spend about $1 billion annually on energy research, a total that includes commitments to biofuels, carbon capture and sequestration, bio-products, non-hydrocarbon energy supply, power generation, transportation, energy efficiency and climate science.

Suzanne McCarron has worldwide responsibility for the company’s public policy, government relations, communications, media relations and corporate citizenship activities. Suzanne authors our Perspectives blog, laying out some of the energy challenges we face and encouraging active discourse about their solutions.

What are ExxonMobil’s views of the climate agreement reached at the COP 21 climate conference in Paris? The recently concluded talks reflected the complexities of enacting thoughtful policies that address climate risks in a meaningful way while also ensuring accessible and affordable energy supplies for societies throughout the world. As policymakers develop mechanisms to meet the goals set in Paris, ExxonMobil encourages them to focus on reducing the greatest amount of emissions at the lowest cost to society.

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ExxonMobil’s key sustainability issues and challenges

exxonmobil.com/citizenship

What impact has the company experienced since expanding its equal employment protections to include sexual orientation and gender identity in early 2015? ExxonMobil’s global policies have always prohibited all forms of discrimination in any company workplace, anywhere in the world. In the United States, ExxonMobil’s equal employment opportunity and harassment in the workplace policies were updated last year to explicitly include sexual orientation and gender identity, which is consistent with ExxonMobil’s long- standing practice of listing enumerated protected classes as defined by federal law. ExxonMobil supports a work environment that values diversity and inclusion, and has numerous inclusive programs and policies that help make ExxonMobil a great place to work. These include support for employee networks that foster a work environment committed to diversity and inclusion, such as People for Respect, Inclusion and Diversity of Employees (PRIDE), which supports lesbian, gay, bisexual and transgender employees. Following the incident at the Torrance refinery, what measures has the company taken to address the potential for similar safety incidents at its other refineries? We deeply regret the incident. Thankfully, no one was seriously hurt. ExxonMobil takes all incidents seriously and is committed to learning from them and taking steps to prevent a recurrence. In addition to cooperating with all agencies investigating the incident, we have conducted our own, separate internal investigation led by a team of subject matter experts from across the corporation. The team spent several months on site interviewing witnesses, reviewing documents, inspecting equipment and preparing a comprehensive report that identified the direct cause of the incident, and made recommendations to prevent a recurrence. We are imple- menting the recommended changes in operating procedures, monitoring equipment and training at ExxonMobil refineries, and will share what we’ve learned with the refining industry.

structures required to recover oil and gas resources by drilling multiple, long-reach wells from the same location, which helps to reduce both underwater noise and our environmental footprint. We also use special earthquake- and frost-resistant pipelines in some northern areas. ExxonMobil developed the industry’s only dedicated, in-house Arctic research program more than 40 years ago. Continued Arctic technology development has allowed us to design, build and operate gravity-based platforms capable of withstanding 6-million-ton icebergs in the North Atlantic and operating year-round in ice-covered waters offshore Sakhalin Island in Russia. Additionally, we piloted and enhanced technologies in 2015 to monitor local wildlife and improve our environmental performance on Alaska’s North Slope. State-of-the-art technologies, including satellite-based remote sensing technology, ground surveillance radar and unmanned aerial systems, help us to monitor local wildlife near our operations and reduce our environmental impact. For more information about our technological innovations in Arctic wildlife protection, see the case study on page 56.

Since 2000, we have spent nearly $7 billion on technology to reduce greenhouse gas emissions, including on energy efficiency, cogeneration, flare reduction, carbon capture and sequestration, and research on lower-emission energy solutions. This includes investments of more than $3.8 billion since 2000 to address energy efficiency and flare mitigation at our Upstream facilities around the world. Additionally, since 2001, more than $2 billion has been invested in our Upstream and Downstream cogeneration facilities to more efficiently produce electricity and reduce greenhouse gas emissions at our manufacturing sites. We are proud of the progress we’ve made, and we recognize the importance of continuing our research and development to help further expand the understanding of climate science. Our efforts have enabled us to take meaningful action to mitigate the risks of climate change, and we will continue to build on this foundation as we work with governments and stakeholders to further address the issue. Increasingly, a number of oil and gas companies are terminating their exploration activities in the Arctic. Does ExxonMobil still believe Arctic development is financially and environmentally viable? The Arctic represents the world’s largest remaining region of undiscovered conventional oil and gas resources. While developing these resources presents a variety of challenges, ExxonMobil has a strong portfolio of assets and opportu- nities in a range of Arctic environments. The company has operated in the region for nearly a century. We began by gaining a scientific understanding of the environment. Design and operational plans in Arctic locales, similar to everywhere we operate, are founded on our commitment to operating in an environmentally responsible and sustainable way. For example, our extended-reach drilling technologies have allowed for field development from land by drilling horizontally under the sea. This approach reduces the number of offshore

How does ExxonMobil manage the risks associated with operating in water-stressed areas?

We have a systematic process for assessing and managing the risks of our operations wherever we operate, and this includes, for example, how we manage water. This process includes a reassessment over the life of the project to identify changes in operations or environmental conditions. Our operations use alternative water sources, where appropriate, and seek opportunities to reduce, reuse and recycle water. We consider multiple factors in determining the right approach for a given process or site, including costs, varied operational efficiencies, increased energy use or the consequences of producing more concentrated waste streams. Together, these factors help us determine site-specific approaches, which vary from site to site due to local conditions and availability.

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ExxonMobil’s key sustainability issues and challenges

exxonmobil.com/citizenship

Do you find your approach to risk management to be effective in helping employees identify and address relevant safety, security, health and environmental risks and issues? ExxonMobil remains steadfast in its commitment to excellence in safety, security, health and environmental performance and operations integrity. Many of our operations and products represent potential risks to people and to the environment. Recognizing and managing these risks is inherent in our business, and we believe the best way to meet our commitment is through a capable, committed workforce, and practices designed to enable safe, secure and environmentally responsible operations. We accomplish this through clearly defined policies and practices and with rigorously applied management systems designed to deliver results. The Operations Integrity Management System , or OIMS, is a cornerstone of our commitment to managing risks and achieving excellence in performance. More than just a set of guidelines, OIMS is part of ExxonMobil’s corporate culture and the way we run our business.

There have been a number of pipeline releases over the past several years; what is ExxonMobil doing to ensure the integrity of its pipelines? Pipeline transport is recognized as the safest means for moving oil and petroleum products. The immense system in the United States is a critical part of the country’s energy infrastructure, moving vital products from locations where they’re produced to the markets where they’re consumed — to fuel cars, heat our homes and power our economy. That said, we are committed to improving pipeline safety and carefully maintaining and monitoring our infrastructure. We have implemented enhanced surveying techniques and state-of-the-art inspection technologies and analyses of our pipelines. These surveys and inspection findings are helping us identify areas where we can strengthen our pipeline integrity.

What is ExxonMobil doing to improve community relations in areas where it is conducting hydraulic fracturing operations? We believe an open dialogue is vital to our long-term success. Unconventional development is still relatively new in many areas where we operate, and we meet with local leaders and community members to find out what is important to the community and to listen to their questions and concerns. Naturally, people living near our operations are concerned that our work could disrupt their way of life. We strive to address their concerns, and we take actions to limit potential impacts, such as altering our traffic routes to avoid disrupting school bus traffic. We also provide site tours to community members so they can observe and ask questions about drilling, hydraulic fracturing and processing. No two communities are the same, and we have undertaken several approaches across the United States to establish a two-way dialogue with our stakeholders. These approaches include weekly community notices, community advisory panels, land conservation projects and town hall meetings. Our goal is more than just getting our work done — we want to be a good neighbor and productive member of the community, both before we begin work and throughout the life cycle of our projects.

ExxonMobil Perspectives blog

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ExxonMobil’s key sustainability issues and challenges

exxonmobil.com/citizenship

Case Study ExxonMobil’s Operations Integrity Management System

Clive Smith, who worked at our Fawley refinery in the United Kingdom for more than 25 years, ensures the integrity of our equipment. ExxonMobil’s OIMS framework establishes common expectations for addressing the safety, security, health and environment risks inherent in our business.

ExxonMobil remains steadfast in our commitment to excel- lence in safety, security, health and environmental (SSH&E) performance, referred to collectively as operations integrity. Operations integrity extends to all aspects of our business that can impact SSH&E performance. We believe the best way to manage the integrity of our business is through a capable, committed workforce coupled with policies, practices and

management systems designed to enable safe, secure and environmentally responsible operations.

The Operations Integrity Management System The Operations Integrity Management System (OIMS) is the cornerstone of our commitment to managing SSH&E risk and achieving operational excellence.

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External standards and OIMS OIMS addresses the management of SSH&E risks at our operations worldwide. OIMS conforms to recognized safety, security, health and environmental standards, such as the International Organization for Standardization (ISO), the Occupational Health and Safety Assessment Series for occupational health and safety management systems (OHSAS) and the American Chemistry Council (ACC) Responsible Care® requirements. In 2013, Lloyd’s Register Quality Assurance Inc. (LRQA) reviewed our ongoing performance and attested that OIMS is consistent with the intent and meets the requirements of the environmental management system ISO 14001:2004 and the occupational health and safety management system

Since the inception of OIMS in the early 1990s, we have significantly reduced our lost-time incident rates, demonstrated a remarkable decline in marine spills and contributed to continuing emission reductions. OIMS establishes a common framework for addressing SSH&E risk across all aspects of our operations, including our supply chain. At the global corporate level, the OIMS framework is built around 11 elements, as illustrated below, each covering a key aspect of risk across the breadth of ExxonMobil’s operations. Each element is comprised of a number of expectations, 65 in all, that provide greater detail. OIMS element 1 — management leadership, commitment and accountability — outlines the expectations of managers as they lead their organization through OIMS. OIMS element 11, operations integrity assessment and improvement, describes the requirements associated with how each operating unit evaluates the extent to which it is meeting the expectations of OIMS. These two elements are often referred to as the “bookends” of OIMS, with element 1 being the “driver” and element 11 providing the feedback mechanism to ensure continuous improvement. Elements 2 through 10 address the operational, day-to-day aspects of OIMS, such as risk management, facilities design and construction, and personnel and training. All operating organizations are required to conform to the expectations described in OIMS. In order for the 11 elements and 65 expectations to be consistent and relevant across ExxonMobil’s diverse operational portfolio, our Upstream, Downstream and Chemical businesses have established detailed OIMS guidelines. These guidelines describe how each business unit addresses the 65 corporate expectations relevant to that business unit’s operations. Additionally, management is responsible for ensuring that management systems satisfying the framework are in place at each operating unit. OIMS includes a systematic, disciplined approach to measure progress and track accountability across business lines, facilities and projects. To drive continuous improvement, we evaluate opportunities to improve the OIMS framework by periodically reviewing and upgrading it.

OHSAS 18001:2007. This attestation is valid for three years, and our next attestation is scheduled to take place in 2016.

Responsible Care® is the chemical industry’s comprehensive health, safety, security and environmental performance improvement initiative. Lloyd’s Register Quality Assurance Inc. also certifies OIMS conformance to Responsible Care Management System® Technical Specification RC101.04 per ACC’s requirements. Systems within OIMS are linked to the relevant Responsible Care Management System® expectations. This approach allows ExxonMobil to run its business through one SSH&E management system, OIMS, and align with local and global standards.

The OIMS framework

Operations

Information/ documentation 4

Risk assessment and management 2

Facilities design and construction 3

Driver

Evaluation

Personnel and training 5

Operations and maintenance 6

Management of change 7

1

11

Management leadership, commitment and accountability

Operations integrity assessment and improvement

Third-party services 8

Incident investigation and analysis 9

Community awareness and emergency preparedness 10

The Operations Integrity Management System framework is built around 11 elements, each covering a key aspect of risk across ExxonMobil’s global operations.

ExxonMobil’s Operations Integrity Management System exxonmobil.com/citizenship

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