ExxonMobil Global Outlook 2023 Sustainability 2024 Advancing

Our view to 2050 Report Climate Solutions

Published January 8, 2024

Forward-Looking Statement Warning
CAUTIONARY STATEMENT RELEVANT TO FORWARD LOOKING INFORMATION FOR THE PURPOSE OF THE “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND OTHER IMPORTANT LEGAL
DISCLAIMERS
Images or statements of future ambitions, plans, goals, events, projects, projections, opportunities, or conditions in the publications, including plans to reduce, abate, avoid or enable avoidance of emissions or reduce emissions intensity, sensitivity
analyses, expectations, estimates, the development of future technologies, business plans, and sustainability efforts are dependent on future market factors, such as customer demand, continued technological progress, policy support and timely
rule-making or continuation of government incentives and funding, and represent forward-looking statements. Similarly, emission-reduction roadmaps to drive toward net zero and similar roadmaps for emerging technologies and markets, and
water management roadmaps to reduce freshwater intake and/or manage disposal, are forward-looking statements. These statements are not guarantees of future corporate, market or industry performance or outcomes for society and are subject
to numerous risks and uncertainties, many of which are beyond our control or are even unknown.
Actual future results, including the achievement of ambitions to reach Scope 1 and 2 net zero from operated assets by 2050, to reach Scope 1 and 2 net zero in Upstream Permian Basin unconventional operated assets by 2030, to eliminate routine
flaring in-line with World Bank Zero Routine Flaring, to reach near zero methane emissions from operated assets and other methane initiatives, to meet greenhouse gas emission reduction plans or goals, divestment and start-up plans, and associated
project plans; technology advances including in the timing and outcome of projects to capture and store CO2 supply lower-emission fuels, produce hydrogen, produce lithium, obtain data on detection, measurement and quantification of emissions
including reporting of that data or updates to previous estimates, and use plastic waste as feedstock for advanced recycling; progress in sustainability focus areas; and reserve or resource changes could vary depending on changes in supply and
demand and other market factors affecting future prices of oil, gas, petrochemical or new market products and services; future cash flows; our ability to execute operational objectives on a timely and successful basis; policy and consumer support for
emission-reduction and other advanced products and technology; changes in international treaties, laws, regulations and incentives, including those greenhouse gas emissions, plastics, carbon storage and carbon costs; evolving reporting standards
for these topics and evolving measurement standards for reported data; trade patterns and the development and enforcement of local, national and regional mandates; unforeseen technical or operational difficulties; the outcome of research
efforts and future technology developments, including the ability to scale projects and technologies such as electrification of operations, advanced recycling, CCS, hydrogen production, or direct lithium extraction on a commercially competitive basis;
availability of feedstocks for lower-emission fuels, hydrogen, or advanced recycling; changes in the relative energy mix across activities and geographies; the actions of competitors; changes in regional and global economic growth rates and consumer
preferences; actions taken by governments and consumers resulting from a pandemic; changes in population growth, economic development or migration patterns; military build-ups, armed conflicts, or terrorism; and other factors discussed in this
release and in Item 1A. “Risk Factors” in ExxonMobil’s Annual Report on Form 10-K for 2022 and subsequent Quarterly Reports on Forms 10-Q, as well as under the heading “Factors Affecting Future Results” on the Investors page of ExxonMobil’s
website at www.exxonmobil.com. The Advancing Climate Solutions Report includes 2022 greenhouse gas emissions performance data and Scope 3 Category 11 estimates for full-year 2022 as of March 1, 2023. The greenhouse gas intensity and
greenhouse gas emission estimates include Scope 2 market-based emissions. The Sustainability Report, the Advancing Climate Solutions Report, and corresponding Executive Summaries were issued on Jan. 8, 2024. The content and data referenced
in these publications focus primarily on our operations from Jan. 1, 2022 – Dec. 31, 2022, unless otherwise indicated. Tables on our “Metrics and data” page were updated on April 26, 2024, to reflect full-year 2023 data. Information regarding some
known events or activities in 2023 are also included. No party should place undue reliance on these forward-looking statements, which speak only as of the dates of these publications. All forward-looking statements are based on management’s
knowledge and reasonable expectations at the time of publication. We do not undertake to provide any further updates or changes to any data or forward-looking statements in these publications. Neither future distribution of this material nor the
continued availability of this material in archive form on our website should be deemed to constitute an update or re-affirmation of these figures or statements as of any future date. Any future update will be provided only through a public disclosure
indicating that fact.
See “ABOUT THE ADVANCING CLIMATE SOLUTIONS AND SUSTAINABILITY REPORTS” below for additional information on these reports and the use of non-GAAP and other financial measures.

ABOUT THE ADVANCING CLIMATE SOLUTIONS AND SUSTAINABILITY REPORTS

The Advancing Climate Solutions Report contains terms used by the TCFD, as well as information about how the disclosures in this report are consistent with the recommendations of the TCFD. In doing so, ExxonMobil is not obligating itself to use any
terms in the way defined by the TCFD or any other party, nor is it obligating itself to comply with any specific recommendation of the TCFD or to provide any specific disclosure. For example, with respect to the term “material,” individual companies
are best suited to determine what information is material, under the long-standing U.S. Supreme Court definition, and whether to include this information in U.S. Securities and Exchange Act filings. In addition, the ISSB is evaluating standards that
provide their interpretation of TCFD which may or may not be consistent with the current TCFD recommendations.
These publications have been prepared at shareholders’ request or for their convenience and intentionally focused on unknown future events that we have been asked to consider. Forward-looking and other statements regarding environmental
and other sustainability efforts and aspirations are not intended to communicate any material investment information under the laws of the United States or represent that these are required disclosures. These publications are not intended to imply
that ExxonMobil has access to any significant non-public insights on future events that the reader could not independently research. In addition, historical, current, and forward-looking environmental and other sustainability-related statements may
be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future, including future laws and rulemaking. Forward-looking and
other statements regarding environmental and other sustainability efforts and aspirations are for informational purposes only and are not intended as an advertisement for ExxonMobil’s equity, debt, businesses, products, or services and the reader
is specifically notified that any investor-requested disclosure or future required disclosure is not and should not be construed as an inducement for the reader to purchase any product or services. The statements and analysis in these publications
represent a good faith effort by the Company to address these investor requests despite significant unknown variables and, at times, inconsistent market data, government policy signals, and calculation, methodologies, or reporting standards.
Actions needed to advance ExxonMobil’s 2030 greenhouse gas emission-reductions plans are incorporated into its medium-term business plans, which are updated annually. The reference case for planning beyond 2030 is based on the Company’s
Global Outlook research and publication. The Global Outlook is reflective of the existing global policy environment and an assumption of increasing policy stringency and technology improvement to 2050. However, the Global Outlook does not
attempt to project the degree of required future policy and technology advancement and deployment for the world, or ExxonMobil, to meet net zero by 2050. As future policies and technology advancements emerge, they will be incorporated
into the GIobal Outlook, and the Company’s business plans will be updated as appropriate. References to projects or opportunities may not reflect investment decisions made by the corporation or its affiliates. Individual projects or opportunities
may advance based on a number of factors, including availability of supportive policy, permitting, technological advancement for cost-effective abatement, insights from the company planning process, and alignment with our partners and other
stakeholders. Capital investment guidance in lower-emission investments is based on our corporate plan; however, actual investment levels will be subject to the availability of the opportunity set, public policy support, other factors, and focused on
returns.
Energy demand modeling aims to replicate system dynamics of the global energy system, requiring simplifications. The reference to any scenario or any pathway for an energy transition, including any potential net-zero scenario, does not imply
ExxonMobil views any particular scenario as likely to occur. In addition, energy demand scenarios require assumptions on a variety of parameters. As such, the outcome of any given scenario using an energy demand model comes with a high
degree of uncertainty. For example, the IEA describes its NZE scenario as extremely challenging, requiring unprecedented innovation, unprecedented international cooperation, and sustained support and participation from consumers, with steeper
reductions required each year since the scenario’s initial release. Third-party scenarios discussed in these reports reflect the modeling assumptions and outputs of their respective authors, not ExxonMobil, and their use or inclusion herein is not an
endorsement by ExxonMobil of their underlying assumptions, likelihood, or probability. Investment decisions are made on the basis of ExxonMobil’s separate planning process but may be secondarily tested for robustness or resiliency against different
assumptions, including against various scenarios. These reports contain information from third parties. ExxonMobil makes no representation or warranty as to the third-party information. Where necessary, ExxonMobil received permission to cite
third-party sources, but the information and data remain under the control and direction of the third parties. ExxonMobil has also provided links in this report to third-party websites for ease of reference. ExxonMobil’s use of the third-party content is
not an endorsement or adoption of such information.
ExxonMobil reported emissions, including reductions and avoidance performance data, are based on a combination of measured and estimated data. We assess our performance to support continuous improvement throughout the organization
using our Environmental Performance Indicator (EPI) process. The reporting guidelines and indicators in the Ipieca, the American Petroleum Institute (API), the International Association of Oil and Gas Producers Sustainability Reporting Guidance
for the Oil and Gas Industry (4th edition, 2020, revised February 2023) and key chapters of the GHG Protocol inform the EPI process and the selection of the data reported. Emissions reported are estimates only, and performance data depends on
variations in processes and operations, the availability of sufficient data, the quality of those data and methodology used for measurement and estimation. Emissions data is subject to change as methods, data quality, and technology improvements
occur, and changes to performance data may be updated. Emissions, reductions, abatements and enabled avoidance estimates for non-ExxonMobil operated facilities are included in the equity data and similarly may be updated as changes in
the performance data are reported. ExxonMobil’s plans to reduce emissions are good-faith efforts based on current relevant data and methodology, which could be changed or refined. ExxonMobil works to continuously improve its approach to
identifying, measuring, and addressing emissions. ExxonMobil actively engages with industry, including API and Ipieca, to improve emission factors and methodologies, including measurements and estimates.
Any reference to ExxonMobil’s support of, work with, or collaboration with a third-party organization within these publications do not constitute or imply an endorsement by ExxonMobil of any or all of the positions or activities of such organization.
ExxonMobil participates, along with other companies, institutes, universities and other organizations, in various initiatives, campaigns, projects, groups, trade organizations, and other collaborations among industry and through organizations like
the United Nations that express various ambitions, aspirations and goals related to climate change, emissions, sustainability, and the energy transition. ExxonMobil’s participation or membership in such collaborations is not a promise or guarantee
that ExxonMobil’s individual ambitions, future performance or policies will align with the collective ambitions of the organizations or the individual ambitions of other participants, all of which are subject to a variety of uncertainties and other
factors, many of which may be beyond ExxonMobil’s control, including government regulation, availability and cost-effectiveness of technologies, and market forces and other risks and uncertainties. Such third parties’ statements of collaborative or
individual ambitions and goals frequently diverge from ExxonMobil’s own ambitions, plans, goals, and commitments. ExxonMobil will continue to make independent decisions regarding the operation of its business, including its climate-related and
sustainability-related ambitions, plans, goals, commitments, and investments. ExxonMobil’s future ambitions, goals and commitments reflect ExxonMobil’s current plans, and ExxonMobil may unilaterally change them for various reasons, including
adoption of new reporting standards or practices, market conditions; changes in its portfolio; and financial, operational, regulatory, reputational, legal and other factors.
References to “resources,” “resource base,” “recoverable resources” and similar terms refer to the total remaining estimated quantities of oil and natural gas that are expected to be ultimately recoverable. The resource base includes quantities of oil
and natural gas classified as proved reserves, as well as quantities that are not yet classified as proved reserves, but that are expected to be ultimately recoverable. The term “resource base” is not intended to correspond to SEC definitions such as
“probable” or “possible” reserves. For additional information, see the “Frequently Used Terms” on the Investors page of the Company’s website at www.exxonmobil.com under the header “Resources.” References to “oil” and “gas” include crude, natural
gas liquids, bitumen, synthetic oil, and natural gas. The term “project” as used in these publications can refer to a variety of different activities and does not necessarily have the same meaning as in any government payment transparency reports.
Exxon Mobil Corporation has numerous affiliates, many with names that include ExxonMobil, Exxon, Mobil, Esso, and XTO. For convenience and simplicity, those terms and terms such as “Corporation,” “company,” “our,” “we,” and “its” are sometimes
used as abbreviated references to one or more specific affiliates or affiliate groups. Abbreviated references describing global or regional operational organizations, and global or regional business lines are also sometimes used for convenience
and simplicity. Nothing contained herein is intended to override the corporate separateness of affiliated companies. Exxon Mobil Corporation’s goals do not guarantee any action or future performance by its affiliates or Exxon Mobil Corporation’s
responsibility for those affiliates’ actions and future performance, each affiliate of which manages its own affairs. For convenience and simplicity, words like venture, joint venture, partnership, co-venturer and partner are used to indicate business
relationships involving common activities and interests, and those words may not indicate precise legal relationships. These publications cover Exxon Mobil Corporation’s owned and operated businesses and do not address the performance or
operations of our suppliers, contractors or partners unless otherwise noted. In the case of certain joint ventures for which ExxonMobil is the operator, we often exercise influence but not control. Thus, the governance, processes, management and
strategy of these joint ventures may differ from those in these reports. At the time of publication, ExxonMobil has completed the acquisition of Denbury Inc. and is in the process of acquiring Pioneer Natural Resources. These reports do not speak of
these companies’ historic governance, risk management, strategy approaches or emissions performance unless specifically referenced.
These reports or any material therein is not to be used or reproduced without the permission of Exxon Mobil Corporation. All rights reserved.
SUPPLEMENTAL INFORMATION FOR NON-GAAP AND OTHER MEASURES
The Resiliency section of the Advancing Climate Solutions Report mentions modeled operating cash flow in comparing different businesses over time in a future scenario. Historic operating cash flow is defined as net income, plus depreciation,
depletion and amortization for consolidated and equity companies, plus noncash adjustments related to asset retirement obligations plus proceeds from asset sales. The Company’s long-term portfolio modeling estimates operating cash flow as
revenue or margins less cash expenses, taxes and abandonment expenditures plus proceeds from asset sales before portfolio capital expenditures. The Company believes this measure can be helpful in assessing the resiliency of the business to
generate cash from different potential future markets. The performance data presented in the Advancing Climate Solutions Report and Sustainability Report, including on emissions, is not financial data and is not GAAP data.
ExxonMobil Global Outlook

Our view
Our view to to

2050
2050 August 2024
ExxonMobil Global Outlook
EXECUTIVE SUMMARY

Our view
Our view to to

2050
2050 August 2024
In 2050, the world will be different -
vastly different

~ 4 BILLION PEOPLE LIVE BELOW

Modern living standards are made possible by ready, affordable access to THE MODERN ENERGY MINIMUM
energy. For the billions of people without that access even the most basic
tasks of life can be extremely challenging. Looking out to 2050, the global
population will continue to grow, adding to the demand for energy. Any
transition that fails to affordably meet this demand along with the world’s
ever-evolving needs is simply not just.
(1/2 THE WORLD ’ S POPUL ATION)

Did you know?

The number of people in the world is expected to increase from 8 billion today to
nearly 10 billion in 2050. With 2 billion more people on the planet, the world will

1 MILLION need new ways to:

MORE PEOPLE Produce more reliable, affordable energy

every 6 days
Drive global economic growth to raise living standards,
particularly in the developing world

Further reduce greenhouse gas emissions

The world will be different in 2050, but the need to provide the reliable, affordable energy that drives economic prosperity
and better living standards, while reducing greenhouse gas emissions, will remain just as critical as it is today. Achieving this
balance will require wind, solar, oil and natural gas, as well as nearly every other form of available energy – because access
to energy drives human development and quality of life.

Defining the modern energy minimum Energy consumption per capita (2023)

To measure the average quality of life by country, the Below modern

<50 MMBtu
energy minimum
United Nations created the Human Development
Developing countries
Index (HDI). Scores are based on three factors: life (above modern Avg. 110 MMBtu
expectancy, education, and income. energy minimum)

Using UN HDI data from 2022, we determined that Developed countries Avg. 160 MMBtu
about 4 billion people live below the “modern energy 0 1 2 3 4 5
minimum.” That’s far below modern standards of Population (billions)
living, which require reliable energy for housing,
infrastructure, jobs, and mobility. Meeting the “modern energy minimum” helps break
the poverty cycle:
By our analysis, for a country to rise above this
threshold, the average energy use per capita would At 50 MMBtu per capita
Energy poverty shrinks as energy use grows
need to be at least 50 million British thermal units a country can:
(MMBtu) per year. Developed countries around
Provide universal access to
the world use, on average, more than three times 2 B rely on harmful cooking fuels1

775M
clean cooking fuels
that amount.
750 M lack access to electricity1 Provide universal access to
electricity
Providing for the basic energy needs is a must 700 M live in extreme poverty
Eliminate abject poverty
to meet the UN’s goal to “end poverty in all its (less than $2.15 per day)2

forms everywhere.” 1
International Energy Agency (IEA) Strategies for Affordable and Fair Clean Energy
xTransitions May 2024
2
World Bank Group Understanding Poverty April 2024

ExxonMobil | Global Outlook | Executive Summary Explore more at exxonmobil.com/globaloutlook 1

Projection: Carbon emissions will fall even as
oil and natural gas remain vital
The world is at a pivotal stage:
It needs to reduce carbon emissions and still provide the energy people need.

>
25%
Increase in energy
2050

use in developing Lifting nations toward the modern energy minimum will drive a projected 15%
countries EQUALS increase in total energy use worldwide between now and 2050. Renewables

15%
Global increase
will play an important role. So will oil and natural gas.
Nearly all of this increase enables economic growth in developing countries.
2023 in energy use
By contrast, energy use in developed nations will decline by more than 10% as
efficiency improves.
>
10% 2050

Decrease in energy use

in developed countries

Projection: Even as developing economies grow and consume more energy,

Global global carbon emissions will start to fall for the first time by 2030. In fact, our
CO₂ emissions Outlook sees carbon emissions continuing to decline through 2050.
How?
• Greater energy efficiency
• More renewables
BY 2050 • Lower-emission technologies, including carbon capture and storage,
hydrogen, and biofuels

Global energy mix As part of the world’s total energy mix, electricity use
Quadrillion Btu will grow by 80% by 2050. More broadly, the most
800 significant changes in the world’s total energy mix
between now and then will be:
Global IEA STEPS
Outlook
Hydro, wind, IPCC Likely

600 15% solar, and 21% Below 2°C Avg

geothermal
6%
9% 10% Bioenergy
30%
5%
6% Nuclear
12%
~12%
400 25% 13% Coal
7% 2050
14% 17%

10% Solar and wind

5% increase by >4x in the
total energy mix
<3%
200
Oil and
54%
56% natural gas 46%
38% 2023
Coal will continue to be displaced by lower-emission
0 sources, including natural gas, which reduces carbon
2023 2050 2050
Actuals Projection Third-party scenarios
emissions by up to 60% in electricity generation.
See “How we develop the Global Outlook” section on page 3 for the difference between
“projections” and “scenarios.”

ExxonMobil | Global Outlook | Executive Summary Explore more at exxonmobil.com/globaloutlook 2

Projection: Oil and natural gas
continue to make up >50% of the world’s
energy mix in 2050
Sensitivity analysis: If every new car sold in the world in 2035 were electric, oil demand in 2050 would still
be 85 million barrels per day. That’s the same as it was in 2010.

The demand for oil to make gasoline for passenger cars will
drop by 2050. What many don’t realize is that making gasoline
is but one relatively small use for oil.
The large majority of the world’s oil is and will be used for
industrial processes, such as manufacturing and chemical
production, along with heavy-duty transportation like
shipping, trucking, and aviation. These services are needed
for modern life – and they also fuel future economic growth
in the developing world.

The Global Outlook sees a plateau in oil demand

beyond 2030, remaining above 100 million barrels
per day through 2050. How we develop the Global Outlook
Projection: Oil demand Our Global Outlook is our latest view of demand and
Million barrels per day supply for energy and products through 2050 assuming an
aggressive but practical energy transition. It forms the basis
120 for the company’s business planning and is scientifically
grounded in our deep understanding of long-term market
fundamentals. In addition to assessing trends in economic
development, technology advances, and consumer behavior,
100 -35% the Outlook seeks to identify potential impacts of climate-
Other
related government policies. It is not an endorsement of a
Light-duty -25% particular outcome.
80 vehicles
We consider a range of scenarios – including those we view
as remote – to help inform strategic thinking. No single
pathway can be reasonably predicted, given the wide range
60 +10% of uncertainties. Key unknowns include yet-to-be developed
Commercial
transportation government policies and advances in technology that may
influence the cost, pace, and potential availability of certain
40 pathways. What also remains uncertain is how quickly and to
what extent businesses and consumers will be willing to pay
for deeper carbon reductions in the products and services
20 +30% they use, thereby creating a market that incentivizes an
Industrial accelerated path to net zero.

Unlike the company’s Outlook, which is a projection, many

0 scenarios, such as International Energy Agency’s Net
2023 2050 Zero Emissions (IEA NZE) by 2050, work backward from
a hypothetical outcome to identify the factors needed to
Yes, changes in the world’s overall energy mix are coming. achieve that outcome. It is important to note that the IEA
But the Global Outlook and various third-party scenarios are acknowledges that society is not on a net-zero pathway.
clear – oil and natural gas will remain essential.

ExxonMobil | Global Outlook | Executive Summary Explore more at exxonmobil.com/globaloutlook 3

Global oil and natural gas supplies
virtually disappear without continued investment

As the world’s demand for oil and natural gas remains strong, sustaining investment
is more important than ever.

Our Outlook reflects oil production naturally declining at Million barrels per day
a rate of about 15% per year. That’s nearly double the IEA’s 125
prior estimates of about 8%.
Global Outlook
100
This increase is the result of the world’s shifting energy mix
toward “unconventional” sources of oil and natural gas. New resources and
These are mostly shale and dense rock formations where 75 projects needed
oil and gas production typically declines faster.
To put it in concrete terms: With no new investment, global 50
oil supplies would fall by more than 15 million barrels per day
Global oil supply with Investment in existing fields
in the first year alone. 25 no investment
At that rate, by 2030, oil supplies would fall from 100 million
barrels per day to less than 30 million – that’s 70 million 0
'50
'10 '20 '30 '40
barrels short of what’s needed to meet demand every day.
year

Sensitivity analysis: The economic effects of this kind of supply shock would be dire.

The world would experience severe energy shortages and

disruption to daily lives within a year of investment ceasing.

Given price responses to past oil supply shocks, the

100 million
permanent loss of 15% of oil supply per year could raise
oil prices by more than 400%. By comparison, prices rose

30
200% during the oil price shocks of the 1970s.

Within 10 years, unemployment rates would likely reach million

30%. That’s higher than during the Great Depression of
the 1930s.

ecline
Oilwsithunopnepwlyinvedstment 2030

2023

Any policy that would “keep it in the ground” is not just.

As this Outlook shows, sustained investment is needed to meet the world’s demand for oil and natural gas – even
as companies like ExxonMobil invest billions to lower the greenhouse gas emissions associated with its own
operations and help other industries lower theirs.

ExxonMobil | Global Outlook | Executive Summary Explore more at exxonmobil.com/globaloutlook 4

Robust investments in
new technology are needed

To improve living standards and get to a lower-

emissions future, the world needs to make sustained
investments in new technologies to:

• Meet increased demand

• Fuel economic growth – especially in developing countries

• Further reduce global emissions

In 2050: Rapid growth in wind and solar in the energy mix – a projected fourfold increase
by 2050 – will spur the biggest changes to the energy landscape. That’s an
important part of the solution.

Commercial transportation and industrial activity alone will account for nearly

50%
half of the world’s emissions in 2050. Wind and solar will play a limited role in
these sectors.
world’s emissions
Reducing emissions in “hard to decarbonize” sectors such as aviation, cement,
steel, and others with unique energy needs will require the world to rely on
from commercial the expansion of biofuels, carbon capture and storage and hydrogen, among
transportation other technologies.
and industrial activity

To preserve the cost, reliability, and infrastructure advantages of today’s energy system and keep pace with demand,
the world will need to scale up solutions such as:

A fuel that, when combusted, produces only water as a byproduct. One essential

H₂ Hydrogen
way to produce virtually carbon-free hydrogen (with ~98% of CO₂ removed) is
to convert natural gas into hydrogen and CO₂ – the hydrogen is used as fuel,
while the CO₂ is captured and stored. This method is endorsed as part of the U.S.
Inflation Reduction Act.

A proven and safe technology that reduces emissions from manufacturing and
CO2 Carbon capture power generation. CO₂ emissions are captured, transported by pipeline to suitable
and storage geologic formations, and permanently stored deep underground. This technology
has been endorsed by the U.S. EPA, the European Union, and the United Nations.

A lower-emission alternative to fossil fuels that is particularly useful in commercial

transportation. Growing the plants that are used to make biofuels can help offset
Biofuels the CO₂ produced when biofuels are combusted, resulting in fewer greenhouse
gas emissions when used in place of diesel fuel.

ExxonMobil | Global Outlook | Executive Summary Explore more at exxonmobil.com/globaloutlook 5

What is needed to get to
net zero?

“To get serious, three things are needed: supportive public policy, significant technology advancements,
and a smooth transition from government subsidies to market-based mechanisms.”

- Darren Woods, ExxonMobil Chairman and CEO

Governments, companies, universities, and others need to work together to

achieve a transition that increases the supply of energy for everyone while steadily
and thoughtfully reducing emissions.
Given the need to do more and do it faster at a lower cost, progress will need to
occur in parallel, supported by durable policies that are focused on:
• More transparency to give the market more lead time to adapt to changes.
• Outcomes to keep the market focused on the best technologies to reduce
the most emissions at the lowest price. Collaboration is key to finding the
right application of technology to lower emissions in specific industries.
That’s why we believe governments should create a level field in which all
technologies can compete without fear or favor so that the best choices
emerge.

The right policy framework can speed up action by the private sector.
Examples include:

• The U.S. Inflation Reduction Act • Canada’s Clean Fuel Regulations

which focuses on an outcome of allows for co-processing
carbon intensity and does not pick of biofuels to achieve a lower-
winners and losers carbon intensity outcome

Where no market exists and initial costs are high, incentives make sense to get things started. But
government incentives cannot – and should not – be in place forever. To get to net zero, markets must
be developed to encourage reduced emissions.

Five key takeaways of our Global Outlook

There has been enormous progress, yet more work is needed.

When considering the world’s energy future, keep these truths in mind:
1. All energy types will remain in the mix.
2. Renewables will grow the fastest.
3. Coal will decline the most.
4. Under any credible scenario, oil and natural gas remain essential.
5. Lower-carbon technology needs policy support to grow rapidly but ultimately must be supported
by market forces.

ExxonMobil | Global Outlook | Executive Summary Explore more at exxonmobil.com/globaloutlook 6

Forward-looking statement

This Executive Summary of the Global Outlook includes Exxon Mobil Corporation’s internal estimates of both historical
levels and projections of challenging topics such as energy demand, supply, and trends through 2050 based upon internal
data and analyses as well as publicly available information from many external sources including the International Energy
Agency. Separate from ExxonMobil’s analysis, we discuss a number of third-party scenarios such as the Intergovernmental
Panel on Climate Change Likely Below 2°C and the International Energy Agency scenarios. Third-party scenarios discussed
in this report reflect the modeling assumptions and outputs of their respective authors, not ExxonMobil, and their use and
inclusion herein is not an endorsement by ExxonMobil of their results, likelihood or probability. Work on the Outlook and
report was conducted during 2023 and 2024. The report contains forward looking statements, including projections, targets,
expectations, estimates and assumptions of future behaviors. Actual future conditions and results (including energy demand,
energy supply, the growth of energy demand and supply, the impact of new technologies, the relative mix of energy across
sources, economic sectors and geographic regions, imports and exports of energy, emissions and plans to reduce emissions)
could differ materially due to changes in economic conditions, the ability to scale new technologies on a cost-effective basis,
unexpected technological developments, the development of new supply sources, changes in law or government policy,
political events, demographic changes and migration patterns, trade patterns, the development and enforcement of global,
regional or national mandates, changes in consumer preferences, and other factors discussed herein and under the heading
“Factors Affecting Future Results” in the Investors section of our website at www.exxonmobil.com. The Outlook was
published in August 2024. ExxonMobil assumes no duty to update these statements or materials as of any future date, and
neither future distribution of this material nor the continued availability of this material in archive form on our website should
be deemed to constitute an update or re-affirmation of this material as of any future date. This material is not to be used or
reproduced without the permission of Exxon Mobil Corporation. All rights reserved.

ExxonMobil | Global Outlook | Executive Summary Explore more at exxonmobil.com/globaloutlook 7

5/6/24, 2:46 PM Energy demand: Three drivers | ExxonMobil

Global Outlook

Energy demand: Three drivers

Policy. Technology. Consumer preferences. All three affect how

the world uses energy. Each driver influences the others. The
interplay varies depending on local circumstances (available
resources, public support) and can change over time. At
ExxonMobil, we’re continually studying energy demand and
developing models that measure its potential impact — all in an
effort to gain a deeper understanding of the interconnectivity of
the global energy system.
Report
Jan. 8, 2024

Three drivers of energy demand

Technology
New technology enables people to do more with less. The most successful technologies
often have the supporting government policies and commercial frameworks to achieve
scale. A policy like tax incentives can spur development of new technology, which then
needs to compete without subsidies to reach a large enough scale to impact global
markets. Consumer preferences can also create a “pull effect” that increases demand in
the marketplace for new technologies.

Policy
Clear and consistent government policies can stimulate new technology and influence
consumer choices. For example, policies can encourage adoption of new technology (free
parking for electric vehicles) or discourage the use of an existing technology (restrictions
on coal-based power). The corollary is also true: Policy not enabled by competitive
technology or not aligned with consumer preferences can be difficult to implement. It is
hard to mandate something that consumers believe is inferior to current options.

Consumer preferences
Demand for energy and products begins with the choices consumers make. These
preferences can shift as new technology enables better options, such as lower costs and
lower emissions. Consumer preferences can also be altered over time by policies that
reward choices, like a carbon tax that encourages lower-emission electricity supply.

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Energy-demand?disableCookieBanner… 1/28
5/6/24, 2:46 PM Energy demand: Three drivers | ExxonMobil

Global energy demand by sector

Primary energy – Quadrillion Btu

Developing countries lead energy demand

Primary energy – Quadrillion Btu

• Global demand reaches about 660 quadrillion Btu in 2050, up about 15% versus
2021, reflecting a growing population and rising prosperity.

• Residential and commercial primary energy demand declines by approximately 15%

to 2050 as efficiency improvements offset the energy needs of a growing

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Energy-demand?disableCookieBanner… 2/28
5/6/24, 2:46 PM Energy demand: Three drivers | ExxonMobil

population.

• Electricity generation is the largest sector and one of the fastest-growing, driven
mainly by expanding access to reliable electricity in developing countries. Growing
electrification is partially offset by efficiency gains in the developed countries.

• Industrial sector growth supports construction of buildings and infrastructure, plus

the manufacturing of products that meet people’s needs.

• Commercial transportation grows as expanding economies increase the need to

move goods. Personal mobility also expands, but efficiency improvements and
more electric vehicles offset the increase in vehicle miles traveled.

• Global energy consumption continues to shift proportionally to developing

economies where population and economic growth are both faster than the global
average. Non-OECD share of global energy demand reaches around 70% in 2050.

• Developing countries account for more than 100% of the global energy demand
growth.

• Efficiency gains outpace economic growth in developed countries, which helps

offset energy demand increases historically linked to economic expansion.

• The combined share of energy used in the U.S. and Europe declines from about
30% in 2021 to about 20% in 2050.

* Electricity and Hydrogen are secondary energies derived from the primary energies shown

**includes biomass, biofuels, hydropower, geothermal

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Energy-demand?disableCookieBanner… 3/28
5/6/24, 2:46 PM Energy demand: Three drivers | ExxonMobil

• Renewables and nuclear see strong growth, contributing around 70% of

incremental energy supplies to meet demand growth.

• Natural gas grows over the period, reaching almost 30% of all demand.

• Oil continues to play a leading role, with growing demand driven by commercial
transportation and feedstocks for the chemicals industry.

• Coal use remains significant in parts of the developing world. It drops below 15%
global share as China and developed nations shift toward lower-emission sources
like renewables, nuclear and natural gas.

• Electricity, an energy carrier and not an energy source, grows approximately four
times faster than overall energy demand.

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Energy-demand?disableCookieBanner… 4/28
5/6/24, 2:46 PM Energy demand: Three drivers | ExxonMobil

Large range of outcomes for individual fuel sources across

scenarios
Share (%) by fuel type within primary energy mix in 2050

Source: IPCC: AR6 Scenarios Database hosted by the International Institute for Applied Systems Analysis
(IIASA ) release 1.0 average IPCC C3: “Likely below 2°C” scenarios, International Energy Agency World
Energy Outlook 2023

• It is important to understand how the Outlook and scenarios are developed and
used. Learn more about how we develop the Outlook and how we use scenarios.

• The IEA’s Stated Policies Scenario (STEPS) reflects current policy settings based on
a sector-by-sector assessment of the specific policies that are in place, as well as
those that have been announced by governments around the world. It offers a
relevant scenario to compare and contrast with our Outlook, which also reflects
current policy.

• The IPCC Likely Below 2°C scenario and the IEA Net Zero by 2050 scenario are
targeting more stringent climate goals, aligned with the Paris Agreement. There is
a wide range of potential outcomes under the IPCC’s Likely Below 2°C scenarios,
as many of the necessary technologies will require innovation and policy support to
accelerate deployment.

• By 2050, the current sources all still play a role in the global energy mix:

— In most of the scenarios, coal use declines more than the Outlook projects.

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Energy-demand?disableCookieBanner… 5/28
5/6/24, 2:46 PM Energy demand: Three drivers | ExxonMobil

— Solar and wind would have to accelerate their buildout rates to be in line with
the scenarios

— Biomass can play an important role providing biofuels for transportation, even
providing negative emissions if CO2 from the flue gases of power plants can be
captured and stored.

— Oil and natural gas are important contributors to the energy system.

— While nuclear has the ability to provide energy at scale and with low emissions
today, few scenarios project high growth.

• The IEA NZE by 2050 is an even more stringent pathway to reduce emissions than
the average of the IPCC Likely Below 2°C scenarios. It accelerates growth of lower-
carbon solutions while also further reducing fossil sources.

Transportation
Commerce and trade increase transportation energy consumption by almost 25% by
2050. The movement of people and goods has grown dramatically over the past few
decades, driven by vast growth in the purchasing power of individuals. Likewise,
technology advancements have provided new and more efficient ways to get around.

Global transportation demand is driven by differing trends for commercial transportation

and light-duty passenger vehicles. As economic activity expands, especially in developing
regions, commercial transportation is expected to grow. Most of the growth comes from
heavy-duty trucking as a result of goods movement. Increased aviation travel also plays a
role as individual purchasing power expands.

Passenger vehicle ownership and travel is expected to increase as a result of the dramatic
growth in the middle class and expanded urbanization. The fuel mix continues to evolve
with more alternatives including electric vehicles (BEV and PHEV).

Hypothetical sensitivities for light-duty demand showed that if by 2035, every new car sale
was an electric vehicle, liquids demand would still remain around 2010 levels by 2050.
Alternatively, a slowdown in fuel efficiency improvement of internal combustion engines
could increase fuel demand by almost 3 million barrels per day by 2050

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Energy-demand?disableCookieBanner… 6/28
5/6/24, 2:46 PM Energy demand: Three drivers | ExxonMobil

Global transportation energy demand

Million of oil-equivalent barrels per day

• Global transportation-related energy demand is expected to grow by more than

30% from 2021 to 2050.

• Personal vehicle ownership continues to grow as purchasing power rises. Higher

efficiency and more electric vehicles lead to a peak, followed by a decline in light-
duty vehicle energy demand in the mid-2020s.

• Commercial transportation (heavy-duty trucking, aviation, marine and rail) energy

demand is led by growth in economic activity and personal buying power, which
drives increasing trade of goods and services.

• Aviation demand sees the highest compounded annual growth rate at about 3.5%
from 2021 to 2050, benefiting from rising economic activity and the rapid growth
of the middle class, specifically in emerging economies.

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Energy-demand?disableCookieBanner… 7/28
5/6/24, 2:46 PM Energy demand: Three drivers | ExxonMobil

Light-duty fleet by type

EVs take market share – Billion fleet vehicles

Light-duty demand drops

Million of oil-equivalent barrels per day

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Energy-demand?disableCookieBanner… 8/28
5/6/24, 2:46 PM Energy demand: Three drivers | ExxonMobil

Personal mobility rises with incomes, resulting in a growing demand for cars and
motorcycles.

• Motorcycles offer a lower-cost entry point to personal mobility, with ownership

particularly high in Asia Pacific.

• China and India lead the growth of car ownership, with larger growth in
developing countries.

• In developed nations, while the number of cars per 1,000 people increases, the
associated vehicle fuel demand declines by around 40% by 2050.

• In 2021, the global fleet was about 1.2 billion vehicles, with 16 million (1.3%) of the
fleet being plug-in hybrids, battery electric, or fuel cell.

• By 2050, these advanced vehicles grow to approximately 44% of the fleet (920
million) and more than 50% of new car sales, driven by decreasing battery costs,
policies for tailpipe emissions, efficiency and reduced dependence for countries
that must import oil. In the near term EV sales grow from 6.4 million in 2021 to 33
million in 2030 at a compounded annual growth rate of about 20%.

• Light-duty vehicle demand for internal combustion engine (ICE) fuels is projected to
peak mid decade and then decline to levels seen in the early-2000s by 2050.

• The reduction in fuel demand, while driven in part by electrification, is mostly

connected with efficiency gains across all vehicle types.

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Energy-demand?disableCookieBanner… 9/28
5/6/24, 2:46 PM Energy demand: Three drivers | ExxonMobil

Light duty fuels demand sensitivity: 100% BEV sales in 2035

• Accurately calculating the reduction of CO2 emissions achieved by using electric

vehicles instead of internal combustion engines requires counting the emissions
associated with the incremental electricity required to power the EV.

• This light-duty vehicle sensitivity analysis helps assess the potential impact to light-
duty liquids demand using alternate assumptions around EV penetration, changes
in fuel efficiency or broader mobility trends.

• In the Outlook, we project battery-electric vehicles to be 24% of all new car sales
by 2035 and 36% by 2050. This sensitivity assumes 100% battery electric vehicle
sales from 2035 onward, resulting in an almost fully electrified global car fleet by
2050 (97% BEV).

• This 100% electric fleet would reduce global demand for oil (excluding biofuels) to
around the same level it was in 2010. CO2 emissions decrease about 4% versus the
Outlook, with the decline in light-duty CO2 emissions partially offset by emissions
from increased power generation.

• The Outlook projects that fuel efficiency will improve at about twice the rate
observed from 2000 to 2021. If the improvement rate is similar to historical levels,
fuel demand in 2050 may be almost 3 million barrels per day higher.

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Energy-demand?disableCookieBanne… 10/28
5/6/24, 2:46 PM Energy demand: Three drivers | ExxonMobil

All modes of commercial transportation grow

• Commercial transportation rises in all regions, with 80% of the growth in

developing countries, driven by increases in population and GDP.

• While all regions see some increased demand, Asia Pacific leads the growth,
accounting for more than 40% of commercial transportation energy demand by
2050.

• Continued improvements in efficiency will moderate the sector’s energy demand,

which is historically associated with expanding economic activity.

• All modes of commercial transportation grow from 2021 to 2050, with heavy-duty
transportation growing the most and air transportation growing the fastest.

• Electrification plays a role in certain applications, like short-haul trucks and buses. It
is less suitable in heavy long-haul, international marine, or aviation, which require
higher energy storage to meet range requirements.

• Hydrogen is expected to make inroads into commercial transportation as

technology improves to lower costs and policy develops to support the needed
infrastructure development.

• Natural gas (LNG on ships) and biofuels (sustainable aviation fuels) are expected to
take a larger share than electricity for these sectors.

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Energy-demand?disableCookieBanne… 11/28
5/6/24, 2:46 PM Energy demand: Three drivers | ExxonMobil

Heavy-duty landscape

Heavy-duty transportation demand is driven by economic activity, which leads to

increased commerce and movement of goods across oceans, nations, and cities. Fuel
demand in this sector is influenced by the type of truck and its use, so understanding fleet
dynamics and fuel usage is important for projecting future demand. For example, a light
commercial vehicle (LCV) for intra-city deliveries has different energy needs than a heavy
commercial vehicle (HCV) for cross-country shipments of goods. Truck fleets also vary by
region.

2015 Heavy-duty fleet/fuel usage mix

Source: IEA The Future of Trucks 2017, ExxonMobil analysis (2019)

• Fleet breakdown and truck usage play a critical role in understanding the types of
alternate fuels available for substitution in trucking.

• In 2015, HCV long-haul trucks made up about 15% of the fleet and used
approximately 55% of the fuel for trucking driven by the heavy loads carried over
long distances.

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Energy-demand?disableCookieBanne… 12/28
5/6/24, 2:46 PM Energy demand: Three drivers | ExxonMobil

Transportation energy demand: Bridge to Likely Below 2°C

World – Quadrillion Btu

Source: IPCC: AR6 Scenarios Database hosted by IIASA release 1.0 average of IPCC C3: “Likely below 2°C”
scenarios

• The Outlook projects that by 2050, plug-in hybrids, battery electric and fuel cells
will grow to about 44% of the fleet (920 million) and more than 50% of new car
sales, driven by decreasing battery costs, policies to reduce tailpipe emissions,
efficiency improvements, and reduced energy dependence for oil-importing
countries.

• The need for energy-dense fuels makes commercial transportation harder to

electrify. The annual growth rate from 2021 to 2050 of electricity across
transportation in the Outlook is comparable to the annual growth within the IPCC
Likely Below 2°C scenarios over a similar interval.

• Oil demand is lower in the IPCC scenarios, reflecting assumptions for fuel switching
and increased vehicle efficiency. Assuming the underlying transportation activity is
similar to the Outlook, the fuel efficiency in the average of the IPCC Likely
Below 2°C scenarios would be roughly 30% higher in 2050.

• Biofuels can play a key role, particularly in harder to decarbonize sectors such as air
and marine transportation, which would require substantial scale-up of biomass
feedstock production and conversion of refineries to bio-refineries. In 2050, both
the Outlook and the average of the Likely Below 2°C scenarios have biofuels

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Energy-demand?disableCookieBanne… 13/28
5/6/24, 2:46 PM Energy demand: Three drivers | ExxonMobil

accounting for 11-12% of the total transportation energy demand. With its higher
overall demand for transportation, this means the Outlook would require about
four times today's biofuels demand, compared to the average IPCC's projection of
about three times

• Hydrogen, or hydrogen-based fuels such as ammonia, could also become part of

the solution set for transportation with substantial scale-up of hydrogen.

Residential and commercial buildings

As populations grow and prosperity rises, more energy will be needed to power homes,
offices, schools, shopping centers, hospitals, etc. This sector also includes the energy
required for grocery stores, retail shops, sporting facilities and cultural centers, to name a
few.

Buildings energy demand is projected to rise by around 15% through 2050. Led by the
growing economies of developing nations, average worldwide household electricity use
will rise about 75% between 2021 and 2050.

Energy efficiency plays a big role in constraining energy demand growth within the
residential and commercial sectors as modern appliances, advanced materials and policies
shape the future.

Demand shifts to developing countries with growth primarily

supplied by electricity

• Rising prosperity and expanding commercial activity leads to an increase of about

15% in energy demand.

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Energy-demand?disableCookieBanne… 14/28
5/6/24, 2:46 PM Energy demand: Three drivers | ExxonMobil

• Strong middle-class growth in developing nations increases energy demand by

about 35%. Improving building efficiencies reduce energy demand in developed
countries by about 15% by 2050.

• Globally, electricity demand rises by 1.8% per year, growing to almost 50% of this
sector by 2050, as traditional biomass, coal and oil demand decline

Industrial
Almost half of the world’s energy use is dedicated to industrial activity
As the global middle class continues to grow, demand for durable products, appliances
and consumable goods will increase. Making these products and their components will
take more industrial activity and more energy.

Industry grows in emerging markets, like India, Southeast Asia, the Middle East and
Africa. Industry also evolves in developed nations as businesses and consumers strive to
reduce their environmental impact by using energy more efficiently.

Industrial growth takes energy. It also takes innovation. This Outlook anticipates
technology advances, as well as the increasing shift toward cleaner forms of energy such
as electricity and natural gas. The industry of the future will do more with less energy and
emissions than it does today.

Historical perspective on industrial product demand

Industrial product demand - growth indexed to 1990

Demand for industrial products has seen enormous growth in recent decades. Efficiency
gains have kept energy demand from rising as fast as production, and the resulting

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Energy-demand?disableCookieBanne… 15/28
5/6/24, 2:46 PM Energy demand: Three drivers | ExxonMobil

emissions per unit of primary energy used (excluding emissions associated with the
electricity used) have stayed fairly flat.

This growing product demand trend is expected to continue as more of the world’s
people advance to the middle class and gain access to products essential for modern
living. Addressing CO2 emissions coming from the energy use in industry will be key.
Switching to lower-carbon fuels such as natural gas and hydrogen will be crucial, as will
growing use of electrification and CCS.

• Plastics are used for food preservation, in medical supplies, cleaning products,
electric vehicles, and many household goods.

• Cement is needed to build dams (hydropower), energy-efficient buildings and

more.

• Aluminum is used in power grids, construction and vehicles.

• Steel is used for large-scale construction, shipping containers, trains and ships.

Industrial sector energy supports economic progress

Global industrial energy demand – Quadrillion Btu

Heavy industry transitions toward cleaner fuels

2021 - 2050 growth – Quadrillion Btu

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Energy-demand?disableCookieBanne… 16/28
5/6/24, 2:46 PM Energy demand: Three drivers | ExxonMobil

• The industrial sector provides about a billion jobs for people who work to feed,
clothe, shelter and improve the lives of people around the world.

• Rising population and prosperity trigger demand for modern cities, medical
equipment, mobility and home appliances that underpin the need for steel, cement
and chemicals.

• In 2021, the industrial sector used about half the world’s electricity and nearly as
much primary energy as the transportation and residential/commercial sectors
combined.

• Increased options for consumers to ‘reduce, reuse, recycle’ and manufacturers’

efforts to improve industrial processes and efficiency can conserve fuel and
mitigate emissions.

• Heavy industry (steel, cement, metals and manufacturing) and chemicals (plastics,
fertilizer and other chemical products) are expected to account for nearly all of the
growth to 2050.

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Energy-demand?disableCookieBanne… 17/28
5/6/24, 2:46 PM Energy demand: Three drivers | ExxonMobil

Oil, gas and electricity fuel industrial growth

World – Quadrillion Btu

• Industry uses energy products both as a fuel and as a feedstock for chemicals,
asphalt, lubricants, waxes and other specialty products.

• Shifting to lower-carbon fuels reduces the industrial sector’s 2050 direct emissions
by around 25% versus 2021 even as primary energy demand increases by more
than 10%.

• Oil, natural gas and electricity contribute almost all the energy needed to replace
coal and meet the industrial energy growth to 2050.

• Oil grows because it is particularly well suited as a feedstock; companies choose

natural gas and electricity for their versatility, convenience and lower direct
emissions.

• Coal use declines as nations and businesses strive to reduce their environmental
impact; it is expected to keep playing a role in steel and cement manufacturing.

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Energy-demand?disableCookieBanne… 18/28
5/6/24, 2:46 PM Energy demand: Three drivers | ExxonMobil

Heavy industry energy intensity improves

Industrial sector energy intensity – Thousand Btu per dollar of GDP (2015$)

• Heavy industry energy intensity measures the amount of energy used in heavy
industry and manufacturing per dollar of overall economic activity (GDP).

• Producing more value with less energy has a positive impact – economically and
environmentally – for manufacturing companies and countries.

• Developed nations have lower energy intensity due to their service-based

economies and predominance of higher-value, energy-efficient industries.

• China's energy intensity, which spiked as it invested in infrastructure and heavy

industry, has been improving rapidly as its economy matures and efficiency
increases.

• Optimizing energy use via advances in technology, processes and logistics can help
companies remain competitive and contribute to gains in global energy intensity.

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Energy-demand?disableCookieBanne… 19/28
5/6/24, 2:46 PM Energy demand: Three drivers | ExxonMobil

Consumer demand boosts need for chemicals

Feed and energy growth – Quadrillion Btu

• Chemicals are the building blocks for thousands of products that people rely on
every day. Demand for fertilizer, cosmetics, textiles and plastics grows through
2050 as rising living standards enable people to buy more medical devices, food,
cars, computers and home goods.

• Asia Pacific’s chemicals production grows to meet the needs of its rising middle
class.

• Producers in the United States and Middle East chemicals production tap
abundant, affordable energy supplies (used as feedstock and fuel) to gain
competitive advantage.

• Europe, Russia, South Korea and Japan remain important contributors to global
chemicals production.

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Energy-demand?disableCookieBanne… 20/28
5/6/24, 2:46 PM Energy demand: Three drivers | ExxonMobil

Chemicals production relies on oil and natural gas

World – Quadrillion Btu

• The chemical industry uses hydrocarbon products as both a feedstock and a fuel.

• Naphtha and natural gas liquids are primarily used as feedstock; natural gas is used
as both a feedstock (notably for fertilizer) and a fuel.

• Natural gas liquids use grows by around 40% from 2021 to 2050, as
unconventional oil and natural gas production in the U.S. expands supply.

• Naphtha is expected to remain the dominant feedstock in Asia; the Middle East is
expected to rely on natural gas liquids and natural gas.

• Advances in plastic materials and chemical processes can save energy as the
industry continues to meet rising consumer demand for high-performing products.

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Energy-demand?disableCookieBanne… 21/28
5/6/24, 2:46 PM Energy demand: Three drivers | ExxonMobil

Industrial energy demand excluding feedstocks

World – Quadrillion Btu

For comparability with IPCC Likely Below 2°C, The Global Outlook industrial demand is restated to include fuel
but exclude feedstocks, notably naphtha and liquid petroleum gas (LPG) in the chemicals sector

• Transforming and decarbonizing the manufacturing industry will be challenging.

It’s large and complex, and it takes large amounts of heat to make basic materials
such as cement and steel.

• Our projections indicate more efforts will be required to further decarbonize the
industry to reduce emissions to the level of the IPCC Likely Below 2°C scenarios.

• Switching from coal to lower-carbon fuels is a theme in both the Outlook and the
IPCC Likely Below 2°C scenarios. Natural gas and hydrogen are well placed to
reduce the emissions from coal use.

• Electrification will need to be made available for even higher-temperature industrial

processes, requiring further research into the materials used for equipment that
can accommodate these new production techniques.

• Carbon capture and storage can provide a scalable solution to capture the
emissions of both energy use and processing, for example from cement
production. Large industrial clusters could benefit from combining captured CO2
streams to increase the efficiency of the storage.

Electricity and power generation

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Energy-demand?disableCookieBanne… 22/28
5/6/24, 2:46 PM Energy demand: Three drivers | ExxonMobil

Global electricity demand rises more than 80%

Electricity demand is expected to grow around the globe, supplied primarily by growth in
wind, solar, natural gas-fired generation, and nuclear. Besides meeting residential,
commercial, and industrial demand, the increase in electricity demand is also fueled by the
growth of electric vehicles in light-duty transportation. Cost reductions in transportation
batteries are being leveraged for other applications including larger-scale electricity
storage.

Today, batteries represent a small share of installed capacity on the grid, and they are
primarily used for short-duration storage. The increased production from weather-
dependent wind and solar triggers more transmission build-out, more storage and more
natural gas plants that provide rapid backup to address short-duration demand peaks. To
maintain reliable and affordable electricity, the world will need new solutions deployable at
commercial scale.

Electricity generation highlights regional diversity

Net delivered electricity – Thousands of terawatt-hours

• The mix of electricity generation varies geographically based on factors including

technology costs, domestic resource availability and policy targets (for example,
renewable portfolio standards for local generation).

• Much of the world continues to shift further toward lower-emission sources for
electricity generation, led by wind and solar, natural gas and nuclear, based on local
opportunities and policies.

• In 2021, coal-fired generation was the leading source of electricity (accounting for
about 45% in developing countries). China’s coal-fired electricity is forecast to fall
by more than a third through 2050, replaced primarily by a combination of wind,
nuclear, natural gas, and solar.

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Energy-demand?disableCookieBanne… 23/28
5/6/24, 2:46 PM Energy demand: Three drivers | ExxonMobil

• The share of electricity use in transportation is expected to grow from today’s low
levels with increasing penetration of electric vehicles as a result of cheaper batteries
and emissions/fuel economy targets.

Renewables and natural gas dominate growth

Global growth 2021-2050 – thousand TWh (net delivered)

Renewables penetration increases across all regions

Wind/Solar share of delivered electricity – % share of TWh

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Energy-demand?disableCookieBanne… 24/28
5/6/24, 2:46 PM Energy demand: Three drivers | ExxonMobil

• Wind and solar generation grow the most to 2050, supported by technology cost
reductions (particularly for solar) and policies targeting lower CO2 emissions.

• Natural gas grows both in and out of developed countries, where growth comes
from coal-to-gas switching. 40% of the natural gas growth among developing
nations occurs in gas-producing Middle East and Africa.

• Most new nuclear generation is built in China. Demand is projected to decline in

developed countries as some phase out nuclear generation.

• Coal-fired generation drops from 45% to 20% share by 2050 in developing

countries, and from 20% to 1% in developed nations as the world aims to reduce
its emissions.

• Wind and solar grow across the globe, but penetration in 2050 varies based on
natural resource quality and levels of policy support. Globally, wind and solar’s
share of delivered electricity grows, from 10% in 2021 to 40% in 2050.

• In 2050, wind and solar are expected to deliver around 50% of electricity in Europe
and North America, contributing to renewables policy goals.

• Renewables growth in Asia Pacific contributes to local air quality improvements

and energy security goals.

• High penetration levels can incur additional costs to manage intermittency through
flexible backup generation, transmission buildout and storage to ensure reliable
electricity delivery.

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Energy-demand?disableCookieBanne… 25/28
5/6/24, 2:46 PM Energy demand: Three drivers | ExxonMobil

Different policy or technology choices can impact gas demand

Global natural gas demand sensitivity – billion cubic feet per day

• Lower-cost wind and solar with efficient storage could increase share to 50% of
power generation. At this higher solar and wind share, proportional reductions in
both coal and natural gas would reduce global natural gas demand by about 60
billion cubic feet per day.

• Decline in coal-fired generation occurs predominantly in developed countries out to

2050. Switching 50% of the remaining coal to natural gas would increase natural
gas demand by about 14%.

• The Outlook team monitors movements in technology, markets, and policy to

identify signposts making certain outcomes more or less likely.

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Energy-demand?disableCookieBanne… 26/28
5/6/24, 2:46 PM Energy demand: Three drivers | ExxonMobil

Power Generation: Bridge to Likely Below 2°C

World - Quadrillion Btu

Source: IPCC: AR6 Scenarios Database hosted by IIASA release 1.0 average of IPCC C3: “Likely Below 2°C”
scenarios
Non-bio-renewables solar, wind and geothermal energy

• Given the high degree of electrification of end-use across the IPCC Likely
Below 2°C scenarios by 2050, these scenarios on average require about twice the
energy input to produce the required electricity versus today.

• To attain the level of renewables envisioned in the scenarios will require much
faster deployment of solar and wind. Solar would be required to deploy at six times
the recent historic rate over the next three decades, and wind at about four times
the recent rate. The Outlook assumes solar and wind will be deployed at about
twice the historic rate, considering available policy support and reduced
effectiveness areas with lower resource quality.

• Nuclear increases its contribution to power generation in the IPCC scenarios, to a

level 35% higher than the Outlook assumes by 2050.

• The Outlook forecasts a 30% decline in electricity supplied by coal from 2021 levels;
the IPCC scenarios call for a reduction of more than 80%.

• The role of natural gas would expand by almost 60% in the Outlook projection. In
the IPCC scenarios, it falls by 15%.

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Energy-demand?disableCookieBanne… 27/28
5/6/24, 2:46 PM Energy demand: Three drivers | ExxonMobil

Build your own report

Click here to build your own report 

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Energy-demand?disableCookieBanne… 28/28
5/6/24, 2:46 PM The energy transition: signposts and scenarios | ExxonMobil

Global Outlook

The energy transition: signposts and scenarios

Any projection or scenario of future energy demand and supply

will reflect a given pace of the energy transition. In our long-term
planning, we pay close attention to key signposts that indicate a
potential shift in the speed and direction of the transition.
Report
Jan. 8, 2024

What’s the difference between a projection and a scenario?

A projection like the Outlook starts with current factors such as public policy and
commercially available technology and then evaluates how they might change over time.
In contrast, many scenarios start with a hypothetical outcome and work backward to
identify the factors that need to occur to achieve that outcome. Both are important
views. Back-casted scenarios help society understand the actions that may be needed to
achieve a hypothetical outcome while projections help society understand the current
path.

How do scenarios inform?

ExxonMobil considers a range of scenarios – including those we view as remote – to help

inform the company’s strategic thinking. No single pathway can be reasonably predicted,
given the wide range of uncertainties. Key unknowns include yet-to-be-developed
government policies and advances in technology that may influence the cost, pace, and
potential availability of certain pathways. Scenarios that employ a full complement of
technology options are likely to provide the most economically efficient pathways. What
also remains uncertain is how quickly and to what extent businesses and consumers will
be willing to pay for carbon reductions in the products and services they use, which is
essential to creating a market that incentivizes an accelerated path to net zero.

Unlike the company’s Outlook, many scenarios, such as International Energy Agency’s
Net Zero Emissions (IEA NZE) by 2050, work backward from a hypothetical outcome to
identify the factors needed to achieve that outcome. It is important to note that the IEA
acknowledges that society is not on a net-zero pathway, and that the NZE scenario
assumes an unprecedented level of energy efficiency gains, innovation and technology
transfers, lower-emissions investments, and globally coordinated greenhouse-gas
reduction policies by governments.

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Energy-transition-signposts?disableCo… 1/11
5/6/24, 2:46 PM The energy transition: signposts and scenarios | ExxonMobil

Global energy-related emissions

CO2 billion metric tons

Source: ExxonMobil 2023 Global Outlook, IEA World Energy Outlook 2023, IPCC Sixth Assessment Report

• Views of the future path of the world’s energy system and emissions levels can be
grouped into three categories.

• Society’s Current Trajectory

— ExxonMobil’s Global Outlook bases its view of energy demand and supply
through 2050 on observable trends in population, economic
development, policy, technology and consumer preferences.

— The International Energy Agency’s Stated Energy Policies Scenario

(STEPS)1 reflects a sector-by-sector assessment of current policy in place
or announced by governments around the world.

• Paris-Aligned Scenarios

— The U.N. Intergovernmental Panel on Climate Change’s (IPCC) database

contains 311 scenarios defined as pathways with a 67% likelihood of
limiting peak warming to below 2°C throughout the 21st century. These
are labelled IPCC Likely below 2°C scenarios2.

— The International Energy Agency’s Announced Pledges Scenario (APS)1

assumes that all aspirational targets announced by governments are met

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Energy-transition-signposts?disableCo… 2/11
5/6/24, 2:46 PM The energy transition: signposts and scenarios | ExxonMobil

on time and in full, including their long-term net zero and energy access
goals.

• Net zero by 2050

— The International Energy Agency’s Net-Zero Emissions by 2050 Scenario

(NZE)1 is an aggressive pathway that assumes all necessary changes in
policy, technology and human behavior occur for the global energy sector
to reach net-zero CO₂ emissions by 2050.

• It is important to note that according to the U.N. Environment Programme

Emissions Gap Report 3, the current Nationally Determined Contributions (NDCs)
to emissions reductions that countries have pledged to make by 2030 are not yet
within a Likely Below 2°C pathway. It further states that G20 members as a group
do not have policies in place to achieve their current NDCs.

• ExxonMobil’s view is that while any one scenario may be remote in probability, all of
these projections and scenarios are useful in informing the company’s long-term
strategic thinking.

2050 Energy mix

Quadrillion Btu

Source: ExxonMobil 2023 Global Outlook, IEA World Energy Outlook 2023, IPCC Sixth Assessment Report

• The Global Outlook projects that the biggest change in the world’s energy mix
between now and 2050 will be a significant increase in solar and wind, coupled

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Energy-transition-signposts?disableCo… 3/11
5/6/24, 2:46 PM The energy transition: signposts and scenarios | ExxonMobil

with a significant reduction in coal.

• Solar and wind are projected to increase fivefold, from 2% of the world’s supply to
over 10%. Coal will increasingly be displaced by lower-emission sources of
electricity production – not just renewables but also natural gas, which has about
half the carbon intensity of coal in electricity generation. Overall, electricity use will
grow 80% by 2050.

• The Outlook projects that oil and natural gas will still make up more than half of the
world’s energy supply in 2050.

• The three IEA scenarios show significant differences, from moderate renewable
energy penetration and high fossil fuel use under current policy to a dramatic
increase in renewables and accompanying reduction in fossil fuel use under the
aggressive NZE scenario.

• Similar to the IEA APS, the IPCC’s Likely Below 2°C scenario sees a considerably
larger role than the Outlook does for renewables – around 30% of total global
energy – yet even this average still has oil and natural gas comprising 38% of total
global energy supply in 2050.

• Because averages can mask large underlying differences, it is also important to look
at the range of energy-mix outcomes across the IPCC's 311 Likely Below 2°C
scenarios.

— Some see coal being completely zeroed-out by 2050.

— Some see a revival of nuclear that brings this emissions-free energy source to
42% of the world’s total energy.

— Some see renewables growing almost 12X to become the world’s dominant
energy source.

— And some see oil and natural gas retaining the top spot and actually meeting
more of the world’s energy supply than they do today, while still achieving the
Likely Below 2°C target.

• A final point worth noting is the difference in energy use per person under the
various projections and scenarios. Currently, the global average is 74 million BTUs
(MMBTU) per person per year, and has been rising for decades as people in
developing countries gain access to modern energy. The Global Outlook projects
this will fall to 68 MMBTU by 2050, an 8% reduction as technology and efficiency
gains enable continued human development with less energy. The most extreme
scenario, IEA NZE, sees energy use per person falling by almost 30%, which would

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Energy-transition-signposts?disableCo… 4/11
5/6/24, 2:46 PM The energy transition: signposts and scenarios | ExxonMobil

require unprecedented decreases in demand through consumer behavior change

and efficiency gains.

Growth of lower-carbon solutions between 2020 and 2050 in

IPCC Likely Below 2°C scenarios

Source: IPCC Sixth Assessment Report, ExxonMobil analysis; Error bars represent 10th percentile to 90th
percentile scenario

• The third-party scenarios illustrate that the energy transition will evolve differently in
each region based on access to infrastructure, technology, policy, and resources.
For instance, the transition is expected to evolve differently based on relative
proximity to quality wind, solar, hydrocarbons, and carbon storage sites, among
others.

• These scenarios imply a range of lower-emission growth opportunities as

highlighted in the chart, which looks across the IPCC Likely Below 2°C scenarios
and illustrates the average (blue bars) growth potential of various lower-emission
solutions.

• While all of these solutions are needed, the black bars represent the wide range of
growth potential across the IPCC Likely Below 2°C scenarios.

• To support further deployment of these technologies at scale, additional policies

and technology advancements are needed to incentivize investments.

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Energy-transition-signposts?disableCo… 5/11
5/6/24, 2:46 PM The energy transition: signposts and scenarios | ExxonMobil

• Striking the right balance in investments at a pace consistent with policy support
and technology advancements is crucial.

The energy system in 2050: Signposts to watch

Every major projection and scenario considers a range of variables that will shape how
the global energy system looks in the year 2050. Each one of these is an important
signpost to follow to gauge the pace of the energy transition. Consider the growth of
low-carbon power. In the NZE scenario, the IEA assumes that 100% of power generated
across the world will be low-carbon, compared with about 9% currently. Under current
policy, reflected by the Outlook and STEPS, the figures are 69% and 79% respectively.
That still represents significant growth, but it is far lower than the increase assumed by
the IEA in the NZE scenario.

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Energy-transition-signposts?disableCo… 6/11
5/6/24, 2:46 PM The energy transition: signposts and scenarios | ExxonMobil

Share of low-carbon primary energy

Share of low-carbon power generation

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Energy-transition-signposts?disableCo… 7/11
5/6/24, 2:46 PM The energy transition: signposts and scenarios | ExxonMobil

Share of electricity in final energy demand

Share of electricity in transportation

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Energy-transition-signposts?disableCo… 8/11
5/6/24, 2:46 PM The energy transition: signposts and scenarios | ExxonMobil

Share of biofuels in liquid transportation fuels

The road to net zero: Deployment speeds are critical

The transition to 2050 in the Likely Below 2°C and 1.5°C scenarios is of such a magnitude
that, in the next 10 years, noticeable trends should emerge to indicate whether the world
is moving in that direction.

• Energy efficiency: Improvement in energy use per capita is a key trend across these

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Energy-transition-signposts?disableCo… 9/11
5/6/24, 2:46 PM The energy transition: signposts and scenarios | ExxonMobil

scenarios. In recent history, the world has seen an increase in energy use per
capita as living conditions in the developing world have improved, more than
offsetting efficiency trends in the developed world. This trend would need to
reverse.

• Solar and wind power: Solar capacity installed each year would have to increase by
3-4X the rate of the past five years. Wind turbines would have to be built at 2-4X
the recent rate.

• Carbon capture and storage: There are about 40 million metric tons per year of
total carbon capture and storage facilities in operation around the world. Over the
next decade, 1-3X the entire existing carbon capture and storage capacity would
have to be added every year.

• Nuclear: Capacity would have to be added at around 3X the recent rate.

• Biofuels: Growth would need to continue for an entire decade and require
commensurate growth in logistics. Whereas the IPCC Likely Below 2°C would
require a growth slightly less than the average of the past five years, the IEA NZE
would require 3X that growth in the next decade.

• Low-carbon hydrogen: Growth would have to reach almost 40% per year in the
IEA NZE scenario.

FOOTNOTES:

1. IEA (2023), World Energy Outlook 2023, IEA, Paris

https://www.iea.org/reports/world-energy-outlook-2023, License: CC BY 4.0
(report); CC BY NC SA 4.0 (Annex A) and IEA (2023), Net Zero Roadmap: A Global
Pathway to Keep the 1.5 °C Goal in Reach, IEA, Paris
https://www.iea.org/reports/net-zero-roadmap-a-global-pathway-to-keep-the-15-
0c-goal-in-reach.

2. Edward Byers, Volker Krey, Elmar Kriegler, Keywan Riahi, Roberto Schaeffer, Jarmo
Kikstra, Robin Lamboll, Zebedee Nicholls, Marit Sanstad, Chris Smith, Kaj-Ivar van
der Wijst, Alaa Al Khourdajie, Franck Lecocq, Joana Portugal-Pereira, Yamina
Saheb, Anders Strømann, Harald Winkler, Cornelia Auer, Elina Brutschin, Matthew
Gidden, Philip Hackstock, Mathijs Harmsen, Daniel Huppmann, Peter Kolp, Claire
Lepault, Jared Lewis, Giacomo Marangoni, Eduardo Müller-Casseres, Ragnhild
Skeie, Michaela Werning, Katherine Calvin, Piers Forster, Celine Guivarch, Tomoko
Hasegawa, Malte Meinshausen, Glen Peters, Joeri Rogelj, Bjorn Samset, Julia
Steinberger, Massimo Tavoni, Detlef van Vuuren. AR6 Scenarios Database hosted
by IIASA, International Institute for Applied Systems Analysis, 2022. doi:

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Energy-transition-signposts?disableC… 10/11
5/6/24, 2:46 PM The energy transition: signposts and scenarios | ExxonMobil

10.5281/zenodo.5886911 | url: data.ece.iiasa.ac.at/ar6/; Likely Below 2°C defined

by category C3.

3. United Nations Environment Programme Emissions Gap Report 2021, The Heat Is
On: A World of Climate Promises Not Yet Delivered,
https://www.unep.org/resources/emissions-gap-report-2021.

4. History is average of 2015 – 2019; actuals and history based on ExxonMobil Energy
Outlook unless otherwise sourced.
Outlook, IEA annual change in energy per capita start from ‘19 to avoid the low
COVID base year as the starting point; 2019 data not available for IPCC.
Carbon capture capacity uses 90% capacity factor assumed.
Nuclear history from 2014-2018; Nuclear deployment estimates include IHS
retirement profile (Markit Global Energy Scenarios data set, Inflections scenario,
July 2022); History is EM analysis based on IHS / IAEA; Wind, Solar, and Nuclear
deployment calculated from TWh based on fixed capacity factors of 35%,17%, and
85% respectively, where capacity is not stated. IEA commercial scale solar
estimated based on STEPS, APS, and NZE forecast total solar, applying average
proportion of commercial scale solar from IEA Renewables 2022 Report (figure
1.5; historical data and accelerated case).

Build your own report

Click here to build your own report 

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Energy-transition-signposts?disableC… 11/11
5/6/24, 2:46 PM Global energy fundamentals | ExxonMobil

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Global-energy-fundamentals?disableCo… 1/7
5/6/24, 2:46 PM Global energy fundamentals | ExxonMobil

Global Outlook

Global fundamentals

Energy is essential for human progress. Economic expansion and

improving access to energy enable longer, more productive lives
for the growing global population.

Report
Jan. 8, 2024

Population

Billion people

Energy per capita

Million Btu

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Global-energy-fundamentals?disableCo… 2/7
5/6/24, 2:46 PM Global energy fundamentals | ExxonMobil

Energy demand growth 2021-2050

Primary energy – Quadrillion Btu

• Global population grows to 9.7 billion in 2050 from 7.8 billion today.

• 65% of this growth is in Africa and the Middle East, over 25% in Asia Pacific, and
only around 3% in OECD countries.

• Efficiency gains reduce energy use per capita in the developed world whereas the
developing world increases its energy per capita in pursuit of higher living
standards.

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Global-energy-fundamentals?disableCo… 3/7
5/6/24, 2:46 PM Global energy fundamentals | ExxonMobil

• Global demand is expected to rise 15% by 2050 as developing nations add five
times what is reduced by developed countries.

World GDP more than doubles

Trillions of 2015$

GDP growth 2021-2050

Trillions of 2015$

1
CAGR: Compound Annual Growth Rate

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Global-energy-fundamentals?disableCo… 4/7
5/6/24, 2:46 PM Global energy fundamentals | ExxonMobil

• Economic expansion is a key driver of energy demand. The world economy

contracted in 2020 due to the COVID pandemic, then recovered in 2021 to the
pre-COVID level. It is now facing significant uncertainties because of high inflation
and rising global tension.

• World GDP is projected to more than double from 2021 to 2050, with developing
nations growing at more than twice the rate of developed countries.

• By 2050, developing countries will account for almost 55% of global GDP, up from
about 40% today. China’s growth from 2021 to 2050 is similar to the growth of the
entire developed world.

• The widespread economic expansion among developing nations suggests

continued robust energy demand in these economies.

Purchasing power per person

Thousands of purchasing power parity (PPP) of 2017$

• Access to energy enables economic progress and improves quality of life. As

income grows, it enables families to own homes, purchase labor-saving appliances,
pursue education, travel, and obtain needed medical treatment.

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Global-energy-fundamentals?disableCo… 5/7
5/6/24, 2:46 PM Global energy fundamentals | ExxonMobil

• As GDP grows faster than population around the globe, average personal incomes
rise everywhere, with significant country and regional variations.

• By 2050, China GDP per capita is expected to more than triple to reach about 75%
of all developed nations at that time.

• India's per capita GDP is likely to grow even faster than China’s. It will remain below
the global average by 2050.

• Africa per capita GDP is expected to add about 45%. Yet in 2050, it is still at around
10% of the average of developed countries.

Global middle class nearly doubles

Billion people

Source: Brookings Institution

• Even though the average income in developing countries remains lower, there is
already a burgeoning middle class that can afford more than the basic necessities
of food and shelter.

• Despite the recent impact from COVID, the Brookings Institution foresees
continued rapid growth of the global middle class, with billions more people rising
out of poverty by 2030.

• Asia Pacific represents the largest growth, with India and China each expected to
have more than 1 billion middle-class citizens by 2030.

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Global-energy-fundamentals?disableCo… 6/7
5/6/24, 2:46 PM Global energy fundamentals | ExxonMobil

• The expanding middle class means billions of people will aim to improve their living
conditions. Access to energy is a critical enabler for these aspirations.

Build your own report

Click here to build your own report 

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Global-energy-fundamentals?disableCo… 7/7
5/6/24, 2:46 PM Energy supply | ExxonMobil

Global Outlook

Energy supply

Energy – in all its forms – enables growth and prosperity. As

economies grow, as technology advances, as consumers
become more environmentally aware, and as policies adapt,
global energy demand will evolve to meet changing needs.
Report
Jan. 8, 2024

Energy supply evolves to meet demand projections

2050 global demand by fuel – Quadrillion Btu

• Most lower-emission energy sources, including nuclear, wind/solar, and biofuels,

increase at the fastest pace.

• Oil remains the largest source of primary energy, as it is essential for commercial
transportation and chemicals.

• Natural gas demand rises, largely to help meet increasing needs for electricity and
lower-emission industrial heat.

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Energy-supply?disableCookieBanner=… 1/13
5/6/24, 2:46 PM Energy supply | ExxonMobil

• Coal is still prominent in some non-OECD countries, although global consumption

appears to have peaked in 2014.

• The energy mix will vary by sector to meet rising demand while addressing
environmental impacts.

• Oil remains essential for transportation, as growing commercial transportation still

relies on liquid fuels to meet more than 80% of demand in 2050.

• With a drive for cleaner and more efficient operations, the industrial sector relies
primarily on electricity and natural gas for growth. Industrial oil demand grows as a
feedstock for chemicals, asphalt, lubricants and other specialty products.

• Electricity demand rises in all end-use sectors. The mix of fuel supply to generate
electricity shifts to lower-emission sources.

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Energy-supply?disableCookieBanner=… 2/13
5/6/24, 2:46 PM Energy supply | ExxonMobil

Liquids demand driven by transportation and chemicals

By region and sector – Million of oil-equivalent barrels per day

• Global liquids demand growth is concentrated in developing nations. Asia Pacific

will account for about 60% of global growth by 2050.

• Efficiency gains and fuel switching in Europe reduce liquids demand by 35% from
2021 to 2050, led by a reduction of about 75% in light-duty vehicle liquids demand.

• Chemicals and commercial transportation account for almost all of the liquids
demand growth, with chemicals expected to increase by around 80% from 2021 to
2050 and commercial transportation to increase by approximately 45%.

Liquids
Liquids are projected to remain the world’s leading energy source in
2050, even as demand growth slows beyond 2025.
Commercial transportation and chemicals – sectors where liquid fuels are favored for
their high energy density and distinctive chemical properties – drive liquids demand
growth. Overall, demand for liquids is expected to rise by about 15 million barrels per day
by 2050. Almost all the growth will come from the emerging markets of Asia, Africa, the
Middle East, and Latin America.

New investments in oil production – and in technologies to improve recoverability,

enhance efficiency and reduce cost – are needed to offset natural production decline and
meet rising demand. Much of the growth in liquids production is expected to be from
sources of supply that have been unlocked by technology advances in the past two
decades: North American tight oil and the natural gas liquids associated with

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Energy-supply?disableCookieBanner=… 3/13
5/6/24, 2:46 PM Energy supply | ExxonMobil

unconventional oil and natural gas production, and deepwater projects offshore Brazil
and Guyana, for example.

Continued investment in conventional crude and condensate will also be needed. The
Middle East and Russia/Caspian remain significant oil producers.

Liquids supply highlights the need for investment

Global liquids supply by type – Million of oil-equivalent barrels per day

Liquids supply highlights regional diversity

By region and type – Million of oil-equivalent barrels per day

• The natural decline rate of existing oil production is approximately 7% per year.
Significant investment is needed to offset this decline and meet the projected

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Energy-supply?disableCookieBanner=… 4/13
5/6/24, 2:46 PM Energy supply | ExxonMobil

demand growth.

• In 2021, conventional crude and condensate made up about two-thirds of the

liquid supply. By 2050, new investment is expected to have diversified oil supply
such that only about half of liquids will come from these conventional sources.

• Tight oil is also rich in natural gas liquids, so tight oil growth brings significant new
supplies of NGLs.

• Biofuels almost quadruple with increasing demand for lower-emission liquid fuels
and technology advancements that reduce costs and land use.

• North America tight oil and associated NGLs production increases by about 50%
from 2021 to 2030. This significant growth solidifies North America as a net
exporter of liquids.

• The Middle East continues to invest in conventional oil production to maintain their
role as leading exporters, which account for about 70% of their production in
2050.

• Asia Pacific remains the largest and fastest-growing region for liquids demand, and
increasingly relies on imports.

• Biofuels production grows across all continents to about 10 million barrels per day
in 2050 to address emissions from hard-to-abate end use.

Natural gas
Natural gas plays a vital role in satisfying the energy needs of consumers
worldwide while helping to mitigate the risks of climate change.
Choosing natural gas as a lower-carbon alternative to coal improves air quality and
reduces carbon intensity.

Natural gas is abundant and versatile. It is a reliable and flexible fuel for electricity
generation and a lower-carbon industrial fuel. It’s also convenient for home use.

Natural gas resources are geographically and geologically diverse. North America’s
unconventional gas resources are produced by applying horizontal drilling and hydraulic
fracturing technologies. The Middle East and Africa are expected to tap large
conventional natural gas resources. Natural gas production is expected to grow in every
region except Europe and Russian Caspian.

Natural gas trade is a critical link between resource-rich regions and demand centers in
Asia Pacific and Europe. New liquefied natural gas export projects are expected to
diversify the market and meet about 50% of the growth in natural gas demand to 2050.

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Energy-supply?disableCookieBanner=… 5/13
5/6/24, 2:46 PM Energy supply | ExxonMobil

Natural gas grows in industry, electricity generation, and

transportation
World – Billion cubic feet per day

• Natural gas plays a vital role in satisfying the energy needs of consumers worldwide
while helping to mitigate the risks of climate change.

• Choosing natural gas as a lower-carbon alternative to coal improves air quality and
reduces carbon intensity.

• Natural gas is abundant and versatile. It is a reliable and flexible fuel for electricity
generation and a lower-carbon industrial fuel. It’s also convenient for home use.

• Abundant and convenient, on an absolute basis natural gas grows more than any
other single source of primary energy during the Outlook period.

• About half of the growth in natural gas demand is for electricity generation, and
40% is for industrial use.

• Residential users rely on natural gas for heating and cooking.

• Increased penetration of natural gas-fueled buses and trucks can help urban areas
manage air quality.

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Energy-supply?disableCookieBanner=… 6/13
5/6/24, 2:46 PM Energy supply | ExxonMobil

Natural gas is growing, but coal is still predominant in non-

OECD Asia
2050 - Quadrillion Btu

Coal-to-natural gas switching reduces emissions

2050 – Global share

• Natural gas rises in prominence as a cleaner-burning alternative to coal over the

Outlook period.

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Energy-supply?disableCookieBanner=… 7/13
5/6/24, 2:46 PM Energy supply | ExxonMobil

• In China and other developing nations in the Asia Pacific region, natural gas
demand doubles from 2021 to 2050. Coal still plays a significant role in the region.

• Coal demand grows by about 40% in developing Asia Pacific countries outside
China, partially offsetting major strides to reduce the use of coal in developed
countries and China.

• Outside of Asia Pacific, many developing countries are expected to leverage

domestic natural gas supplies to meet rising electricity demand and fuel industrial
growth.

• In 2050, coal is expected to meet about 14% of global energy demand and produce
27% of energy-related CO2 emissions.

• With the same boiler efficiency, burning natural gas to produce heat emits about
40% less CO2 than burning coal.

• Choosing flexible, highly efficient gas-fired electricity generation to replace older,

inefficient coal plants can reduce CO2 emissions by up to 60% while producing
fewer air pollutants.

• Every 1% of global primary energy shifted from coal to natural gas can reduce
energy-related CO2 emissions by almost 1% in 2050.

Gas supply diversifies and trade grows to meet rising demand

Billion cubic feet per day

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Energy-supply?disableCookieBanner=… 8/13
5/6/24, 2:46 PM Energy supply | ExxonMobil

Share of supply growth 2021-2050

• North America’s abundant unconventional natural gas is expected to feed new

LNG projects and meet growing local demand.

• Africa’s natural gas production could drive economic growth and prosperity, as
demand and exports are poised to accelerate, led by Mozambique, Nigeria, Algeria
and Egypt.

• The Middle East is expected to continue investing in LNG export projects, more
than doubling their export capacity by 2050.

• Europe is likely to continue to rely on natural gas trade to meet consumer demand
as local production declines.

• In 2021, Asia Pacific’s LNG imports were larger than all other regions’ combined;
around 2030, the region’s total natural gas demand will likely surpass North
America’s; and in 2050, LNG trade is expected to meet about half of Asia Pacific’s
natural gas demand.

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Energy-supply?disableCookieBanner=… 9/13
5/6/24, 2:46 PM Energy supply | ExxonMobil

Asia Pacific and Europe benefit from LNG imports

Billion cubic feet per day

Diverse natural gas supplies underpin new LNG exports

Billion cubic feet per day

• In 2021, LNG trade met about 10% of global natural gas demand. By 2050, LNG
trade will meet nearly 20% of the world’s natural gas needs.

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Energy-supply?disableCookieBanner… 10/13
5/6/24, 2:46 PM Energy supply | ExxonMobil

• Asia Pacific absorbs about 85% of the growth in LNG from 2021 to 2050, helping
the region to reduce its carbon intensity while sustaining economic growth.

• China’s ‘war on smog’ and ‘blue-sky’ policies have led to measurable improvements
in urban air quality while boosting demand for LNG imports.

• India and other Asia Pacific importers are expected to look to LNG to supplement
domestic natural gas production, often leveraging existing natural gas
infrastructure.

• Europe is expected to tap competitive LNG to diversify its natural gas import
portfolio

• In 2021, about 70% of LNG exports originated in Asia Pacific, the Middle East or
Africa.

• North America’s LNG exports are projected to grow the most on an absolute basis
as low-cost unconventional gas production prompts investment.

• East Africa, Qatar and Russia projects are expected to expand and diversify LNG
exports.

• The LNG market is expected to remain highly competitive due to abundant natural
gas resources and many aspiring exporters.

• The diversity and reliability of LNG supplies, combined with the flexibility to ship it
where it is needed, make LNG a favorable choice for nations needing dependable,
lower-emission energy sources to foster economic growth.

Global oil supply and demand

Million barrels per day

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Energy-supply?disableCookieBanner… 11/13
5/6/24, 2:46 PM Energy supply | ExxonMobil

Source: 2023 IEA World Energy Outlook; IPCC: AR6 Scenarios Database hosted by IIASA release 1.0 average
IPCC C3: “Likely Below 2°C” scenarios; ExxonMobil Analysis

Global natural gas supply and demand

Billion cubic feet per day

Source: 2023 IEA World Energy Outlook; IPCC: AR6 Scenarios Database hosted by IIASA release 1.0 average
IPCC C3: “Likely Below 2°C” scenarios; ExxonMobil Analysis

• With oil and natural gas a key part of the future energy mix across all of the
assessed 2°C scenarios and the IEA NZE scenario, it is important to consider the
investments needed to meet society’s demand.

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Energy-supply?disableCookieBanner… 12/13
5/6/24, 2:46 PM Energy supply | ExxonMobil

• Without continued investment to sustain existing fields and develop new ones, the
supply of oil and natural gas declines. The estimated natural decline rate is 7% per
year and 5% for natural gas.

• As shown in the charts, these decline rates create a significant need for continuous
investment just to sustain 2021 production levels. The natural rate of decline for oil
and gas exceed the range of demand projections out to 2050. Ceasing to invest in
either oil or gas could cause supplies to fall well short of demand, both for the near
term and in the broad range of scenarios.

Build your own report

Click here to build your own report 

https://corporate.exxonmobil.com/en/What-we-do/Energy-supply/Global-Outlook/Energy-supply?disableCookieBanner… 13/13
2024 Advancing
Climate Solutions

Published January 8, 2024

2024 Advancing
Climate Solutions
Executive Summary

Published January 8, 2024

Advancing Climate Solutions Executive Summary ExxonMobil’s and society’s emissions 2016
Getting the planet on a path to net zero requires unprecedented 0%
innovation and collaboration at immense scale. The ongoing societal Society1 ExxonMobil
effort is critical but must avoid economic hardships and market actual2
disruptions that result from energy and product shortages. -20%
ExxonMobil
Solving this challenge is not an “either/or” proposition. It’s an 2030 plan3
“and” equation. One that requires an increase in energy supply and -40%
reduction in greenhouse gas emissions – improved energy security
and thoughtful progress in the energy transition.
-60%
Given the skills and capabilities required, there’s no question that the
energy industry plays a critical role – on both sides of this equation.
-80%
ExxonMobil is doing our part.

Since 2016, we’ve significantly reduced our Scope 1 and 2 operated -100%
1970 1980 1990 2000 2010 2020 2030
emissions.

And we've got plans to do more.

2050 net-zero ambition

With advancements in technology and clear and consistent government policies that support
needed investments and the development of market-driven mechanisms, we aim to achieve
net-zero Scope 1 and 2 greenhouse gas emissions in our operated assets by 2050.

| 2024 Advancing Climate Solutions | Executive Summary 2

2050 net-zero ambition (cont'd)
Our net-zero ambition is backed by a comprehensive approach centered market potentially measured in the trillions of dollars by 2050.⁴ That’s why
on detailed emission-reduction roadmaps. We completed these roadmaps we established ExxonMobil’s Low Carbon Solutions business.
in 2022 and continue to update them to reflect technology and policy, and
to account for the many potential pathways, and the pace of the energy We’re working to profitably grow a leading position in these new
transition. We are using this approach in our Permian Basin unconventional emission-reduction markets, with a focus on the global economy’s hard-
operations, where we are on track to achieve our industry-leading plans to to-decarbonize sectors – like heavy industry, power generation, and
reach net-zero Scope 1 and 2 emissions by 2030. commercial transportation. These are critical sectors where cost-effective
solutions are lacking and where we can make a unique, significant, and
Beyond reducing emissions in our own operations, we see the opportunity lasting contribution.
to use our core capabilities to help other essential industries and customers
lower their emissions. This is an immense opportunity with an addressable

Competitive advantages
The same competitive advantages that have underpinned the success of our traditional businesses for more than 140 years are the foundation of this world-
scale Low Carbon Solutions business.

People Technology Scale Integration Functional

excellence

Corpus Christi Chemical Complex

| 2024 Advancing Climate Solutions | Executive Summary 3

The challenge is enormous.
To tackle it, the world needs industrial-scale solutions.
We need them deployed globally and at a much lower cost than today.
That will require continued advances in technology, and clear and consistent
government policies that catalyze investments in the near term. Additionally,
the world will need to establish a new industry – a carbon-reduction industry
– and a market that pays for the cost of emission reductions.
The skills and capabilities required to address these complicated challenges
play to ExxonMobil’s strengths and align with our strategic priorities:
• Leading performance
Industry leader in operating and financial performance.
• Essential partner
Value through win-win solutions for our customers, partners, and broader
stakeholders.
• Advantaged portfolio
Portfolio of assets and products outperform competition and grow value in
a lower-emission future.
• Innovative solutions
New products, technologies, and approaches to accelerate large-scale
deployment of solutions essential to modern life and lower emissions.
• Meaningful development
Diverse and engaged organization with unrivaled opportunities for
personal and professional growth doing impactful work to meet society’s
needs.

| 2024 Advancing Climate Solutions | Executive Summary 4

Corpus Christi Chemical Complex
Making progress About this report
Over our history and across the globe, we have built industries where none existed before. This year’s edition of ExxonMobil’s Advancing
Climate Solutions Report describes our resolve
We see this today with our developments in Papua New Guinea and Guyana. to drive meaningful change, the results we’re
At our core, we’re a technology company that uses our science and engineering capabilities already delivering, and the resiliency of our plans
to bring value-added solutions to partners and customers. We do this in a variety of ways under a wide range of future scenarios.
using unique advantages in scaling technology and delivering complex, large-scale projects This Executive Summary highlights the significant
safely, reliably, and at industry-advantaged cost. We're developing molecules that cost- progress we continue to make toward:
effectively meet the ever-evolving needs of society. We're unlocking critical oil and natural
gas resources trapped in geologic formations around the world. And we're capturing and • Achieving our 2030 emission-reduction plans
safely storing emissions for hard-to-decarbonize industrial processes. and our 2050 net-zero ambition.
Of course, our past successes and current strengths stem from the commitment, • Reducing methane emissions.
experience, and capabilities of our people. Their skills, tenacity, and resiliency are the
bedrock on which our company is built. • Building our Low Carbon Solutions business.

If you were to make a list of the biggest challenges facing humankind right now, addressing We encourage you to visit our website to explore
poverty and climate change would be at the top. greater detail on these topics and others related
to our actions to address the risks of climate
At the same time, if you were to make a list of the companies that have a credible chance of change across our businesses.
improving access to affordable energy and other products that are critical to improved living
standards and reducing emissions, ExxonMobil would also be at the top.
The strategy we’ve developed, the organization we’ve built, and the businesses we’re
focused on position us to grow and create value for many decades to come, regardless of
the pace of the transition.

At our core, we’re a technology company that uses our science

and engineering capabilities to bring value-added solutions to
partners and customers.

Guyana Prosperity FPSO

| 2024 Advancing Climate Solutions | Executive Summary 5

Making real progress toward solving the "and" equation
ExxonMobil is delivering both sides of the “and” equation – meeting society’s needs for energy and essential products and reducing emissions.

Increasing energy and product supply

& Reducing greenhouse gas emissions5

• We achieved record production from our projects in the Permian Basin • We’ve cut operated methane emissions in half since 2016, eliminated all
and Guyana in the second quarter of 2023, up more than 20% from a of our high-bleed pneumatic devices in U.S. operated unconventional
year earlier.6 production, and established our Center for Operations and Methane
Emissions Tracking (COMET). When fully deployed, COMET is expected
• We added 250,000 barrels per day of refining capacity in early 2023 in to provide around-the-clock remote monitoring capabilities in the
Beaumont, Texas. The extra supply helps reduce rising price pressures, region.
easing the impact on consumers and businesses. It was the largest
refinery expansion in the U.S. since 2012.7 • We eliminated routine flaring in our Permian Basin operated assets, in
line with the World Bank’s Zero Routine Flaring Initiative,9 which is a key
• We started up a chemical expansion project at Baytown, Texas, that has part of our 2030 goal of achieving net-zero Scope 1 and 2 greenhouse
capacity to deliver 750,000 tons per year of products that are used by gas emissions from our unconventional operated assets in the Permian.
manufacturers to make stronger and lighter auto parts, construction
materials, packaging, and more.8 • We electrified our drilling fleet in the Permian Basin and deployed our
first electric fracturing units to further reduce emissions intensity.10

• We acquired Denbury Inc., which expands our Low Carbon Solutions

business opportunities by leveraging the largest CO₂ pipeline network
in the United States.11

• We signed landmark CO₂ offtake agreements with a major fertilizer

producer, a steel manufacturer, and an industrial gas company to
capture, transport, and store up to 5 million metric tons of CO₂ per year.
That’s equivalent to replacing approximately 2 million gasoline-powered
cars with electric vehicles,12 which is roughly equal to the total number
of EVs on U.S. roads today.13,14,15

• We began drilling for lithium in southwestern Arkansas – a process that

holds great promise to address the growing needs of the EV battery
markets.

| 2024 Advancing Climate Solutions | Executive Summary 6

2030 greenhouse gas emission-reduction plans16,17 view web module

Since 2016, we’ve reduced our operated greenhouse gas emissions intensity by more than 10%, and our 2030
plans are expected to drive further reductions.
Corporate-wide greenhouse Corporate-wide methane Upstream greenhouse gas Corporate-wide flaring
gas intensity intensity intensity intensity
2030 plan: 2030 plan: 2030 plan: 2030 plan:

20-30% 70-80% 40-50% 60-70%

Our plans to reduce emissions intensity through 2030 include:
• Achieving net-zero Scope 1 and 2 greenhouse gas emissions in our
Permian Basin unconventional operated assets.

• Deploying carbon capture and storage, hydrogen, and lower-emission

fuels in our operations.

• Further reducing methane emissions at operated assets in alignment with

the Global Methane Pledge and with Aiming for Zero Methane Emissions,
developed by the Oil and Gas Climate Initiative.

• Further reducing flaring in upstream operations to meet the World Bank

Zero Routine Flaring Initiative.

• Integrating lower greenhouse gas energy sources into our facilities through
long-term power purchase agreements and electrification.

• Improving energy efficiency in our businesses by evolving operational and

maintenance processes.

• Substituting low-carbon hydrogen for natural gas to reduce emissions

from furnaces.

• Deploying innovative solutions to further reduce greenhouse gas Did you know?
emissions with future advancements in technology and supportive policies.
ExxonMobil is a leading purchaser of renewable power.18

| 2024 Advancing Climate Solutions | Executive Summary 7

Progress through year-end 2022
Corporate-wide operated GHG Corporate-wide operated methane Upstream operated GHG Corporate-wide operated
emissions intensity emissions intensity emissions intensity hydrocarbon flaring intensity
(T CO2e/100 T) (T CH4/100 T) (T CO2e/100 T) (m3/T)
2022 year-end actual: 2022 year-end actual: 2022 year-end actual: 2022 year-end actual:
NDCs
0.08 30
15
30
0.06
20 10
20 2030 plan
0.04 2030 plan

10 5
10 0.02 2030 plan
2030 plan

0 0.00 0 0
2016 2022 2016 2022 2016 2022 2016 2022

Versus 2016 levels. Applies to Scope 1 and 2 GHG emissions from operated assets.

>10% reduction in corporate-wide greenhouse gas (GHG) emissions intensity19

‘Other’ includes power-purchase agreements, energy attribute certificates, and other changes.

• Methane and flaring intensity reductions make up the bulk of our improvement.

• Our actions to reduce emissions intensity significantly offset our growth.

• Divestments did not meaningfully contribute to our intensity reductions.

| 2024 Advancing Climate Solutions | Executive Summary 8

Approach to reducing emissions in business planning Potential GHG abatement options for ExxonMobil operated assets
supporting 2030 GHG emission-reduction plans20
We incorporate actions needed to advance our 2030 emission- Roadmap
reduction objectives into our medium-term business plans, which Roadmap
we update annually. The reference case for planning beyond
2030, including impairment assessments and future planned
development activities, is based on our Global Outlook.

The Outlook considers the existing global policy environment,

announced policy changes, technology advances, consumer

T CO2e/100 T
preferences, and the historical precedents for each of these
areas. It does not attempt to project the degree of future policy,
technology advancement, or deployment necessary for the world
or ExxonMobil to meet net zero by 2050.

As additional policies are implemented and technology advances

beyond our estimates, we incorporate those changes into the
Outlook and update our business plans accordingly as part of our
annual planning cycle. 2016
intensity
2022
intensity
Energy
efficiency
Flare & Operations/ Electrification/ CCS, hydrogen,
methane reconfigurations PPAs/RECs/ and/or future
2030
intensity
minimization high-quality advancements
offsets
Abatement curve
Abatement curve
Positioning for a lower-emission future CCS, hydrogen, and/or
future advancements

We have evolved our operating model, enabling efficiencies

that better leverage the scale of an increasingly integrated
company. At the same time, we have centralized many
cost
AbatementCost
of the skills and capabilities required by our business,
allowing us to improve allocation of critical resources;
Abatement

drive continuous improvement, including detection and

Operations/
measurement of emissions; and grow value. This serves us reconfigurations
Electrification

well in a variety of future scenarios, irrespective of the pace

Methane
of the energy transition. minimization
Flare
Electrification/
minimization
PPAs/RECs/
high-quality Energy
offsets efficiency

CO2e mitigation

Higher-cost options reflect the need for additional policy and continued advocacy.

| 2024 Advancing Climate Solutions | Executive Summary 9

Reducing methane emissions view web module

Our plans to reduce methane intensity across our operated assets remain on As of year-end 2022, we have
track. These include reductions versus 2016 levels of 70%-80% in methane eliminated routine flaring in our
intensity and 60%-70% in flaring intensity by 2030.
Permian operations.
To get there, we’re developing and deploying enhanced technologies from
satellites to on-the-ground sensors for rapid detection and mitigation –
starting with a focus on our highest methane emission sources. At the same
time, we’re continuing to develop and advocate for strong measurement
and reporting frameworks to provide consistent, comparable, and
most importantly, useful data to inform our methane mitigation efforts
worldwide. In 2023, we took additional steps to further collaboration among
government and industry partners, including deciding to join the United
Nations Oil and Gas Methane Partnership 2.0.

Our Permian operations make up about 16% of our total methane

emissions. By rapidly advancing our plans in the basin, we’re reducing
emissions and developing solutions that we can refine and deploy in other
parts of the world. As of year-end 2022, we have eliminated routine flaring
in our Permian operations. With full deployment of our near-continuous
monitoring program in the Permian by 2025, we expect our Center for
Operations and Methane Emissions Tracking (COMET) to provide real-time
monitoring of 700 sites across 1.8 million acres.
We’re developing and deploying
Our progress in the Permian Basin guides our projects elsewhere. The
pneumatic devices in our industry are, as a category, the largest source
enhanced technologies from
of routine methane emissions in our processes. That’s why in 2020, we satellites to on-the-ground
completed the elimination of high-bleed pneumatic devices across our U.S. sensors for rapid detection
unconventional production, and we’re working to eliminate the rest by 2025.
Through actions like these, we’re eliminating potential sources of methane
and mitigation.
emissions while advancing our ability to detect and quantify others.

We know we can’t go it alone. Collaboration will be vital as we implement

solutions to support society’s net-zero future. By working with a wide range
of universities, academic consortiums, environmental groups, and more,
we’re advancing leading-edge research and piloting new technologies to
help the industry and our company measure, reduce, and report methane
emissions.

| 2024 Advancing Climate Solutions | Executive Summary 10

Sustaining our commitment to R&D view web module

We determine which research projects to advance based on factors

including advantage versus alternatives, ability to scale, alignment with core
capabilities and key partners, and probability of commercial success.

We employ thousands of scientists and engineers, including more than

1,500 Ph.D.s. Their work drives our research in new materials, novel low-
energy processes, and improved means of CO₂ storage.

Our scientists have written more than 1,000 peer-reviewed publications

and received more than 10,000 patents over the past decade. In addition,
we collaborate with more than 80 universities around the world, four
energy centers, and several U.S. national laboratories. These collaborations
have increased knowledge in key areas important to the energy transition,
including fugitive methane emissions detection and modeling; optimization
techniques to understand CO₂ storage; electrification of processes; lower-
emission fuels; and energy systems models.

>1,500 >1,000
Ph.D.s employed peer-reviewed publications
written by our scientists

>10,000 > 80
patents over the past decade university collaborations around
the world

| 2024 Advancing Climate Solutions | Executive Summary 11

Shanghai Technology Center
Investing in lower-emission solutions view web module

We're pursuing more than $20 billion in lower-emission investments from

2022 through 2027, in addition to the approximately $5 billion Denbury
acquisition. About 50% of our lower-emission investments are targeted at
reducing emissions from operated assets, with the balance going toward
reducing the emissions of other companies.

We’re focused on customers in the heavy industry, power generation, and

commercial transportation sectors. These sectors provide great economic
value and generate significant emissions that aren’t easy to cut. Together,
these sectors account for about 80% of energy-related CO₂ emissions today.

Carbon capture and storage, hydrogen, biofuels, and lithium align with our
capabilities and have the potential to make a big difference in these hard-to-
decarbonize sectors.

| 2024 Advancing Climate Solutions | Executive Summary 12

Denbury
Carbon capture and storage
The technology exists today to capture and store CO₂ from emission The recent acquisition of Denbury expands our capabilities in this area. It
sources. Global agencies including the International Energy Agency, the provides ExxonMobil with the largest owned and operated network of CO₂
U.N. Intergovernmental Panel on Climate Change, and the U.S. Department pipelines in the United States, including 900 miles of pipelines near the
of Energy have concluded that permanent storage of CO₂ in appropriately largest industrial complexes on the Gulf Coast. Combining Denbury’s assets
selected geological formations is a safe and secure option.21 and our experience accelerates and expands our ability to help customers
reduce their emissions.
ExxonMobil has cumulatively captured more human-made CO₂ than
any other company on the planet, and we’re expanding our long-term Ultimately, we see an opportunity to create a carbon capture and storage
storage capacity in anticipation of market developments. We have three business with the capacity to reduce emissions across the Gulf Coast by
of the largest third-party contracts to capture, transport, and store CO₂ more than 100 million metric tons per year.22 This transaction will help us do
– advancing projects that will help decarbonize a fertilizer company, an that at a lower cost and faster pace.
industrial gases company, and a steel company.

Denbury acquisition creates strong U.S. Gulf Coast CO2 infrastructure position

MS AL
TX LA
Industrial emissions sources
ExxonMobil industrial sites
Baton Rouge

Beaumont
CO₂ storage sites
Lake Charles
Baytown
Acquired CO₂ pipeline
Houston Port Arthur

Enhanced oil recovery

Corpus Christi

Note: All information shown is approximate (e.g., storage / pipeline location) and has potential to change as projects are developed and implemented.

| 2024 Advancing Climate Solutions | Executive Summary 13

Hydrogen
We also have a long history with hydrogen, a zero-carbon energy source that
can be used to reduce emissions in hard-to-decarbonize sectors including
steel manufacturing, refining, and heavy-duty trucking, among others.

In Baytown, Texas, we are developing the world’s largest low-carbon

hydrogen production facility. We are designing it to produce 1 billion cubic
feet of hydrogen per day, using a process called “auto-thermal reforming“
to separate the hydrogen and carbon atoms. We plan to use carbon
capture and storage to sequester the CO₂ emissions. More than 98% of the
associated CO₂ emissions produced by the facility – 7 million metric tons per
year – are expected to be captured and stored. Baytown future hydrogen plant

Biofuels
We can also make a real difference with biofuels. Demand for energy-dense,
lower-emission fuels is expected to grow rapidly, especially in the aviation,
marine, and heavy-duty trucking industries.

This growth creates opportunities to process biofuels and make drop-in

replacements for today’s fossil fuels. Our Product Solutions business is
working to supply approximately 40,000 barrels per day of lower-emission
fuel by 2025, with a further goal of 200,000 barrels per day by 2030.

Lithium Strathcona biofuels

Lithium production is an exciting new business opportunity for us. We’re
working to apply our upstream and downstream expertise to recover and
separate lithium from deep brine reservoirs. Using available technologies,
we’re working to produce this critical mineral more efficiently and with fewer
environmental impacts than traditional hard rock mining – helping to grow a
U.S.-based supply for the global battery and electric vehicle markets.23

Arkansas lithium

| 2024 Advancing Climate Solutions | Executive Summary 14

Advocating for sound policy view web module No single transition pathway can be reasonably predicted, given the
wide range of uncertainties. Key unknowns include yet-to-be-developed
As we discuss in our Global Outlook, the energy transition is underway, but government policies, market conditions, and advances in technology that may
it is not yet happening at the scale or on the timetable required to achieve influence the cost, pace, and potential availability of certain pathways. A full
society’s net-zero ambitions. Three key drivers are needed, and all involve complement of technology options should be considered to provide the most
broad collaboration among governments, companies, universities, and economically efficient pathways.
others.

First, continued public policy support. Incentives like those in the U.S. And third, the development of carbon markets. Governments cannot
Inflation Reduction Act provide a necessary catalyst for companies to begin afford to continue paying for emissions reductions indefinitely. Ultimately,
scaling low-carbon solutions. Permitting reform is needed to accelerate the to achieve global emission-reduction goals, the world will need to move to
deployment of these solutions, a step recognized in the European Union’s widespread adoption of markets that reflect the cost of driving emissions
Net-Zero Industry Act. Constructive policy should be stable and transparent down.
so that market participants have sufficient time to adapt to changes. It
should also recognize the need to match supply with demand to minimize Canada’s Clean Fuels Regulations, which went into effect in 2023, offer
price spikes that destabilize economies and penalize end-users. an example of how governments can establish market-based policies that
encourage investment and enable society to accelerate emissions reductions.
Second, advances in technology. Only three of the more than 50 The regulations set progressive standards for fuels that reduce carbon
technologies needed to reach net-zero emissions by 2050 are “on track,” intensity over time, thereby increasing the incentives for lower-intensity fuels
according to the International Energy Agency.24 An approach to technology and enabling investments like the Strathcona renewable diesel plant to be
where governments support further R&D and avoid picking winners and operated by our affiliate Imperial Oil.
losers through legislation will lead to quicker solutions that are the most
cost-efficient.

Potential greenhouse gas abatement options based on ExxonMobil emissions reduction roadmaps supporting our net-zero ambitions25
Without policies With current global policies26 With current global policies and potential U.S.
IRA incentives27

| 2024 Advancing Climate Solutions | Executive Summary 15

 Maintaining strong corporate governance view web module

Our Board of Directors oversees and provides guidance on our strategy and
planning, which includes opportunities and risks related to climate change
and the energy transition. Directors engage with experts from inside and
outside the company and apply their individual experience and perspective
in evaluating the company’s capital-allocation priorities, with a focus on
growing shareholder value and playing a leading role in a thoughtful energy
transition.

The Board, collectively and through its Environment, Safety and Public Policy
(ESPP) Committee, regularly engages with senior management on climate
matters and our environmental approach and performance. This includes
briefings with internal and external subject-matter experts, which can
cover elements of scientific and technical research, public policy positions,
greenhouse gas emission-reduction reporting and performance, and new
technology developments.

In September 2022, we held a Board meeting in the Permian

Basin, where our local employees led the directors on tours of our
unconventional operations. The tours provided them with critical
insights on our progress toward meeting our net-zero goal for
this key part of our business.

| 2024 Advancing Climate Solutions | Executive Summary 16

 Ensuring resiliency view web module

We have continued to assess the resiliency of our business and investment Updates to the IEA NZE scenario since 2021 have not changed the outcome
portfolio against a range of future scenarios that are aligned with the goals of our assessment, which highlights resiliency through investment flexibility
of the Paris Agreement, including the IEA Net Zero Emissions by 2050 (NZE) across options that are both needed and consistent with our core capabilities,
scenario. including oil and natural gas with lower emission intensity, chemicals, carbon
capture and storage, lower-emission fuels, and hydrogen.28
These resiliency assessments demonstrate that our business is well
positioned even in an aggressive decarbonization pathway, driven by the
growth potential for chemicals, lower-emission fuels, carbon capture and
storage, and hydrogen opportunities, which are critical to achieve society's
net-zero ambition.

For more than 140 years, we have been a leader in innovation, supplying the energy and products people need
to live healthy, prosperous lives in the modern world. We are continuing this legacy of innovation by doing our
part to provide energy security and evolving our operations in ongoing support of a net-zero future – all while
creating long-term shareholder value.

Banyu Urip Indonesia

| 2024 Advancing Climate Solutions | Executive Summary 17

Footnotes
1. 1940-2022 global society CO2 emissions estimates based on data from IEA CO2 Emissions in 2022 Report; includes 16. ExxonMobil 2030 GHG emission-reduction plans are intensity-based and for Scope 1 and 2 greenhouse gas emissions
energy-related combustion and industrial process CO2 emissions. from operated assets compared to 2016 levels. These plans include actions that are also expected to achieve absolute
reduction in corporate-wide greenhouse gas emissions by approximately 20%, compared to 2016 levels. See https://
2. ExxonMobil Scope 1 and 2 greenhouse gas emission estimates from operated assets compared to 2016 levels. corporate.exxonmobil.com/news/news-releases/2021/1201_exxonmobil-announces-plans-to-2027-doubling-
ExxonMobil’s reported emissions, reductions, and avoidance performance data are based on a combination of earnings-and-cash-flow-potential-reducing-emissions.
measured and estimated emissions data using reasonable efforts and collection methods. Calculations are based on
industry standards and best practices, including guidance from the American Petroleum Institute (API) and Ipieca. 17. Based on Scope 1 and 2 emissions of ExxonMobil operated assets through 2022 (versus 2016). ExxonMobil’s reported
There is uncertainty associated with the emissions, reductions, and avoidance performance data due to variation emissions, reductions, and avoidance performance data are based on a combination of measured and estimated
in the processes and operations, the availability of sufficient data, quality of those data, and methodology used for emissions data using reasonable efforts and collection methods. Calculations are based on industry standards and best
measurement and estimation. Performance data may include rounding. Changes to the performance data may be practices, including guidance from the American Petroleum Institute (API) and Ipieca. There is uncertainty associated
reported as part of the company’s annual publications as new or updated data and/or emission methodologies become with the emissions, reductions, and avoidance performance data due to variation in the processes and operations,
available. We are working to continuously improve our performance and methods to detect, measure, and address the availability of sufficient data, quality of those data, and methodology used for measurement and estimation.
greenhouse gas emissions. ExxonMobil works with industry, including API and Ipieca, to improve emission factors and Performance data may include rounding. Changes to the performance data may be reported as part of the company’s
methodologies, including measurements and estimates. Scope 1 and 2 emissions and intensity totals are calculated annual publications as new or updated data and/ or emission methodologies become available. We are working to
using market based method for Scope 2. continuously improve our performance and methods to detect, measure, and address greenhouse gas emissions.
ExxonMobil works with industry, including API and Ipieca, to improve emission factors and methodologies, including
3. ExxonMobil 2030 GHG emission-reduction plans are intensity-based and for Scope 1 and 2 greenhouse gas emissions measurements and estimates. Scope 1 and 2 emissions and intensity totals are calculated using market based method
from operated assets compared to 2016 levels. These plans include actions that are also expected to achieve absolute for Scope 2.
reduction in corporate-wide greenhouse gas emissions by approximately 20%, compared to 2016 levels. See https://
corporate.exxonmobil.com/news/news-releases/2021/1201_exxonmobil-announces-plans-to-2027-doubling- 18. Based on ExxonMobil analysis of the BloombergNEF Global Corporate Renewable Power Purchase Agreement
earnings-and-cash-flow-potential-reducing-emissions. Capacity Commitments as of September 2023.
4. Total addressable market based on ExxonMobil analysis of the IPCC’s Sixth Assessment Report Scenarios Database 19. ExxonMobil’s reported emissions, reductions, and avoidance performance data are based on a combination of
hosted by IIASA for carbon capture and storage, wind, solar, hydrogen, nuclear, biofuels, geothermal, and hydropower. measured and estimated emissions data using reasonable efforts and collection methods. Calculations are based on
Secondary energy demand and prices in 2050 in the Likely Below 2°C scenarios (Category C3) were used, where industry standards and best practices, including guidance from the American Petroleum Institute (API) and Ipieca.
available, to calculate an estimate of potential market revenue. Carbon capture and storage estimate includes both CCS There is uncertainty associated with the emissions, reductions, and avoidance performance data due to variation
and direct air capture and used price of carbon for pricing estimate. Biofuels estimate used liquids pricing for pricing in the processes and operations, the availability of sufficient data, quality of those data, and methodology used for
estimate. 2020 dollars. measurement and estimation. Performance data may include rounding. Changes to the performance data may be
reported as part of the company’s annual publications as new or updated data and/or emission methodologies become
5. Based on Scope 1 and 2 emissions of ExxonMobil operated assets through 2022 (versus 2016). ExxonMobil’s reported available. We are working to continuously improve our performance and methods to detect, measure, and address
emissions, reductions, and avoidance performance data are based on a combination of measured and estimated greenhouse gas emissions. ExxonMobil works with industry, including API and Ipieca, to improve emission factors and
emissions data using reasonable efforts and collection methods. Calculations are based on industry standards and best methodologies, including measurements and estimates.
practices, including guidance from the American Petroleum Institute (API) and Ipieca. There is uncertainty associated
with the emissions, reductions, and avoidance performance data due to variation in the processes and operations, 20. These charts illustrate potential greenhouse gas abatement options for Scope 1 and 2 greenhouse gas emissions.
the availability of sufficient data, quality of those data, and methodology used for measurement and estimation. These options are not all-inclusive and are subject to change as a result of a number of factors, including abatement
Performance data may include rounding. Changes to the performance data may be reported as part of the company’s reduction magnitude, implementation timing, abatement cost, portfolio changes, policy developments, technology
annual publications as new or updated data and/ or emission methodologies become available. We are working to advancements, and as annual company plans are updated. Includes energy attribute certificates, such as renewable
continuously improve our performance and methods to detect, measure, and address greenhouse gas emissions. energy certificates (RECs) and guarantees of origin (GOOs). Analysis as of November 2023.
ExxonMobil works with industry, including API and Ipieca, to improve emission factors and methodologies, including 21. NETL Technical Report and User Guide (pg. 11), IPCC Carbon Dioxide Capture and Storage (pg. 14), Special Issue
measurements and estimates. Scope 1 and 2 emissions and intensity totals are calculated using market based method commemorating the 10th year anniversary of the publication of the Intergovernmental Panel on Climate Change
for Scope 2. Special Report on CO2 Capture and Storage.
6. ExxonMobil 2Q 2023 Earnings Release (July 2023): https://d1io3yog0oux5.cloudfront. 22. Market potential for emission reduction opportunity based on ExxonMobil analysis of CO2 pipeline routes, current and
net/_161f0ad0ee737b82a3ec771e72c07da2/exxonmobil/db/2288/22123/earnings_release/ potential capacity, potential emitters in the U.S. Gulf Coast market, and potential infrastructure upgrades. Subject to
XOM+2Q23+Earnings+Press+Release+Website.pdf. additional investment by ExxonMobil, customer commitments, supportive policy, and permitting for carbon capture
7. ExxonMobil Press Release (March 2023): https://corporate.exxonmobil.com/news/news-releases/2023/0316_ and storage projects.
exxonmobil-boosts-fuel-supply-with-2-billion-dollar-beaumont-refinery-expansion. 23. Expected smaller footprint of lithium mining and expected lower carbon and water impacts: EM analysis of external
8. ExxonMobil Press Release (September 2023): https://corporate.exxonmobil.com/news/news-releases/2023/0919_ sources and third party life-cycle analyses. 1) Vulcan Energy, 2022 https://v-er.eu/app/uploads/2023/11/LCA.pdf,
exxonmobil-expands-chemical-production-at-baytown. Minviro publication. Grant, A., Deak, D., & Pell, R. (2020). 2) The CO2 Impact of the 2020s Battery Quality Lithium
Hydroxide Supply Chain-Jade Cove Partners. https://www.jadecove.com/research/liohco2impact. Kelly, J. C., Wang,
9. References to routine flaring herein are consistent with the World Bank’s Zero Routine Flaring by 2030 Initiative/Global M., Dai, Q., & Winjobi, O. (2021). 3) Energy, greenhouse gas, and water life cycle analysis of lithium carbonate and
Gas Flaring Reduction Partnership’s principle of routine flaring, and excludes safety and non-routine flaring. lithium hydroxide monohydrate from brine and ore resources and their use in lithium ion battery cathodes and lithium
10. ExxonMobil 2Q 2023 Earnings Prepared Remarks: https://d1io3yog0oux5.cloudfront. ion batteries. Resources, Conservation and Recycling, 174, 105762.
net/_161f0ad0ee737b82a3ec771e72c07da2/exxonmobil/db/2404/22130/pdf/2Q23+Earnings+- 24. International Energy Agency (2023), Tracking Clean Energy Progress 2023, IEA, Paris https://www.iea.org/reports/
+Preliminary+Prepared+Remarks.pdf. tracking-clean-energy-progress-2023, License: CC BY 4.0.
11. ExxonMobil Press Release (July 2023): https://corporate.exxonmobil.com/news/news-releases/2023/0713_ 25. Charts illustrate potential GHG abatement options for Scope 1 and 2 greenhouse gas emissions, based on current
exxonmobil-announces-acquisition-of-denbury. roadmaps for major operated assets and ExxonMobil analysis. These options are not all-inclusive, may not reflect
12. ExxonMobil analysis based on assumptions for U.S. in 2022, including average distance traveled, fuel efficiency, investment decisions made by the company, and are subject to change as a result of a number of factors, including
average power grid carbon intensity, electric vehicle charging efficiency, and other factors. Gas-powered cars include abatement reduction magnitude, implementation timing, abatement cost, portfolio changes, policy developments,
light-duty vehicles (cars, light trucks and SUVs). technology advancement, alignment with our partners and other stakeholders, and as annual company plans are
updated.
13. ExxonMobil Press Release (October 2022): https://corporate.exxonmobil.com/news/news-releases/2022/1012_
landmark-emissions-reduction-project-in-louisiana-announced. 26. ExxonMobil's GHG emissions pricing for 2023-2030 is based on currently stated existing or anticipated policies; pricing
for 2030-2050 reflects presumed regional policies for both advanced and emerging economies.
14. ExxonMobil Press Release (June 2023): https://corporate.exxonmobil.com/news/news-releases/2023/0601_lcs-
nucor-agreement. 27. Based on preliminary ExxonMobil analysis of U.S. IRA provisions. All assumptions and interpretations of U.S. IRA
incentives are subject to change. IRS has yet to publish guidance and regulations to implement the U.S. IRA 45V.
15. ExxonMobil website: https://lowcarbon.exxonmobil.com/lower-carbon-technology/carbon-capture-and-
storage#Newagreement. 28. International Energy Agency (2021), Net Zero by 2050, IEA, Paris; IEA NZE scenario per World Energy Outlook 2022,
IEA, Paris; IEA Net Zero Roadmap: A Global Pathway to Keep the 1.5°C Goal in Reach 2023 Update, IEA, Paris.

| 2024 Advancing Climate Solutions | Executive Summary 18

Forward-Looking Statement Warning
CAUTIONARY STATEMENT RELEVANT TO FORWARD LOOKING INFORMATION FOR THE PURPOSE OF THE “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND OTHER IMPORTANT LEGAL DISCLAIMERS
Images or statements of future ambitions, plans, goals, events, projects, projections, opportunities, or conditions in the publications, including plans to reduce, abate, avoid or enable avoidance of emissions or reduce emissions intensity, sensitivity analyses, expectations, estimates, the development of future
technologies, business plans, and sustainability efforts are dependent on future market factors, such as customer demand, continued technological progress, policy support and timely rule-making or continuation of government incentives and funding, and represent forward-looking statements. Similarly,
emission-reduction roadmaps to drive toward net zero and similar roadmaps for emerging technologies and markets, and water management roadmaps to reduce freshwater intake and/or manage disposal, are forward-looking statements. These statements are not guarantees of future corporate, market
or industry performance or outcomes for society and are subject to numerous risks and uncertainties, many of which are beyond our control or are even unknown.
Actual future results, including the achievement of ambitions to reach Scope 1 and 2 net zero from operated assets by 2050, to reach Scope 1 and 2 net zero in Upstream Permian Basin unconventional operated assets by 2030, to eliminate routine flaring in-line with World Bank Zero Routine Flaring, to
reach near zero methane emissions from operated assets and other methane initiatives, to meet greenhouse gas emission reduction plans or goals, divestment and start-up plans, and associated project plans; technology advances including in the timing and outcome of projects to capture and store CO2
supply lower-emission fuels, produce hydrogen, produce lithium, obtain data on detection, measurement and quantification of emissions including reporting of that data or updates to previous estimates, and use plastic waste as feedstock for advanced recycling; progress in sustainability focus areas; and
reserve or resource changes could vary depending on changes in supply and demand and other market factors affecting future prices of oil, gas, petrochemical or new market products and services; future cash flows; our ability to execute operational objectives on a timely and successful basis; policy and
consumer support for emission-reduction and other advanced products and technology; changes in international treaties, laws, regulations and incentives, including those greenhouse gas emissions, plastics, carbon storage and carbon costs; evolving reporting standards for these topics and evolving
measurement standards for reported data; trade patterns and the development and enforcement of local, national and regional mandates; unforeseen technical or operational difficulties; the outcome of research efforts and future technology developments, including the ability to scale projects and
technologies such as electrification of operations, advanced recycling, CCS, hydrogen production, or direct lithium extraction on a commercially competitive basis; availability of feedstocks for lower-emission fuels, hydrogen, or advanced recycling; changes in the relative energy mix across activities and
geographies; the actions of competitors; changes in regional and global economic growth rates and consumer preferences; actions taken by governments and consumers resulting from a pandemic; changes in population growth, economic development or migration patterns; military build-ups, armed
conflicts, or terrorism; and other factors discussed in this release and in Item 1A. “Risk Factors” in ExxonMobil’s Annual Report on Form 10-K for 2022 and subsequent Quarterly Reports on Forms 10-Q, as well as under the heading “Factors Affecting Future Results” on the Investors page of ExxonMobil’s
website at www.exxonmobil.com. The Advancing Climate Solutions Report includes 2022 greenhouse gas emissions performance data and Scope 3 Category 11 estimates for full-year 2022 as of March 1, 2023. The greenhouse gas intensity and greenhouse gas emission estimates include Scope 2 market-
based emissions. The Sustainability Report, the Advancing Climate Solutions Report, and corresponding Executive Summaries were issued on Jan. 8, 2024. The content and data referenced in these publications focus primarily on our operations from Jan. 1, 2022 – Dec. 31, 2022, unless otherwise indicated.
Tables on our “Metrics and data” page were updated on April 26, 2024, to reflect full-year 2023 data. Information regarding some known events or activities in 2023 are also included. No party should place undue reliance on these forward-looking statements, which speak only as of the dates of these
publications. All forward-looking statements are based on management’s knowledge and reasonable expectations at the time of publication. We do not undertake to provide any further updates or changes to any data or forward-looking statements in these publications. Neither future distribution of this
material nor the continued availability of this material in archive form on our website should be deemed to constitute an update or re-affirmation of these figures or statements as of any future date. Any future update will be provided only through a public disclosure indicating that fact.
See “ABOUT THE ADVANCING CLIMATE SOLUTIONS AND SUSTAINABILITY REPORTS” at the end of this document for additional information on these reports and the use of non-GAAP and other financial measures.
ABOUT THE ADVANCING CLIMATE SOLUTIONS AND SUSTAINABILITY REPORTS
The Advancing Climate Solutions Report contains terms used by the TCFD, as well as information about how the disclosures in this report are consistent with the recommendations of the TCFD. In doing so, ExxonMobil is not obligating itself to use any terms in the way defined by the TCFD or any other
party, nor is it obligating itself to comply with any specific recommendation of the TCFD or to provide any specific disclosure. For example, with respect to the term “material,” individual companies are best suited to determine what information is material, under the long-standing U.S. Supreme Court
definition, and whether to include this information in U.S. Securities and Exchange Act filings. In addition, the ISSB is evaluating standards that provide their interpretation of TCFD which may or may not be consistent with the current TCFD recommendations.
These publications have been prepared at shareholders’ request or for their convenience and intentionally focused on unknown future events that we have been asked to consider. Forward-looking and other statements regarding environmental and other sustainability efforts and aspirations are not
intended to communicate any material investment information under the laws of the United States or represent that these are required disclosures. These publications are not intended to imply that ExxonMobil has access to any significant non-public insights on future events that the reader could not
independently research. In addition, historical, current, and forward-looking environmental and other sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to
change in the future, including future laws and rulemaking. Forward-looking and other statements regarding environmental and other sustainability efforts and aspirations are for informational purposes only and are not intended as an advertisement for ExxonMobil’s equity, debt, businesses, products, or
services and the reader is specifically notified that any investor-requested disclosure or future required disclosure is not and should not be construed as an inducement for the reader to purchase any product or services. The statements and analysis in these publications represent a good faith effort by the
Company to address these investor requests despite significant unknown variables and, at times, inconsistent market data, government policy signals, and calculation, methodologies, or reporting standards.
Actions needed to advance ExxonMobil’s 2030 greenhouse gas emission-reductions plans are incorporated into its medium-term business plans, which are updated annually. The reference case for planning beyond 2030 is based on the Company’s Global Outlook research and publication. The Global
Outlook is reflective of the existing global policy environment and an assumption of increasing policy stringency and technology improvement to 2050. However, the Global Outlook does not attempt to project the degree of required future policy and technology advancement and deployment for the world,
or ExxonMobil, to meet net zero by 2050. As future policies and technology advancements emerge, they will be incorporated into the GIobal Outlook, and the Company’s business plans will be updated as appropriate. References to projects or opportunities may not reflect investment decisions made by the
corporation or its affiliates. Individual projects or opportunities may advance based on a number of factors, including availability of supportive policy, permitting, technological advancement for cost-effective abatement, insights from the company planning process, and alignment with our partners and other
stakeholders. Capital investment guidance in lower-emission investments is based on our corporate plan; however, actual investment levels will be subject to the availability of the opportunity set, public policy support, other factors, and focused on returns.
Energy demand modeling aims to replicate system dynamics of the global energy system, requiring simplifications. The reference to any scenario or any pathway for an energy transition, including any potential net-zero scenario, does not imply ExxonMobil views any particular scenario as likely to occur.
In addition, energy demand scenarios require assumptions on a variety of parameters. As such, the outcome of any given scenario using an energy demand model comes with a high degree of uncertainty. For example, the IEA describes its NZE scenario as extremely challenging, requiring unprecedented
innovation, unprecedented international cooperation, and sustained support and participation from consumers, with steeper reductions required each year since the scenario’s initial release. Third-party scenarios discussed in these reports reflect the modeling assumptions and outputs of their respective
authors, not ExxonMobil, and their use or inclusion herein is not an endorsement by ExxonMobil of their underlying assumptions, likelihood, or probability. Investment decisions are made on the basis of ExxonMobil’s separate planning process but may be secondarily tested for robustness or resiliency
against different assumptions, including against various scenarios. These reports contain information from third parties. ExxonMobil makes no representation or warranty as to the third-party information. Where necessary, ExxonMobil received permission to cite third-party sources, but the information and
data remain under the control and direction of the third parties. ExxonMobil has also provided links in this report to third-party websites for ease of reference. ExxonMobil’s use of the third-party content is not an endorsement or adoption of such information.
ExxonMobil reported emissions, including reductions and avoidance performance data, are based on a combination of measured and estimated data. We assess our performance to support continuous improvement throughout the organization using our Environmental Performance Indicator (EPI) process.
The reporting guidelines and indicators in the Ipieca, the American Petroleum Institute (API), the International Association of Oil and Gas Producers Sustainability Reporting Guidance for the Oil and Gas Industry (4th edition, 2020, revised February 2023) and key chapters of the GHG Protocol inform the EPI
process and the selection of the data reported. Emissions reported are estimates only, and performance data depends on variations in processes and operations, the availability of sufficient data, the quality of those data and methodology used for measurement and estimation. Emissions data is subject to
change as methods, data quality, and technology improvements occur, and changes to performance data may be updated. Emissions, reductions, abatements and enabled avoidance estimates for non-ExxonMobil operated facilities are included in the equity data and similarly may be updated as changes in
the performance data are reported. ExxonMobil’s plans to reduce emissions are good-faith efforts based on current relevant data and methodology, which could be changed or refined. ExxonMobil works to continuously improve its approach to identifying, measuring, and addressing emissions. ExxonMobil
actively engages with industry, including API and Ipieca, to improve emission factors and methodologies, including measurements and estimates.
Any reference to ExxonMobil’s support of, work with, or collaboration with a third-party organization within these publications do not constitute or imply an endorsement by ExxonMobil of any or all of the positions or activities of such organization. ExxonMobil participates, along with other companies,
institutes, universities and other organizations, in various initiatives, campaigns, projects, groups, trade organizations, and other collaborations among industry and through organizations like the United Nations that express various ambitions, aspirations and goals related to climate change, emissions,
sustainability, and the energy transition. ExxonMobil’s participation or membership in such collaborations is not a promise or guarantee that ExxonMobil’s individual ambitions, future performance or policies will align with the collective ambitions of the organizations or the individual ambitions of other
participants, all of which are subject to a variety of uncertainties and other factors, many of which may be beyond ExxonMobil’s control, including government regulation, availability and cost-effectiveness of technologies, and market forces and other risks and uncertainties. Such third parties’ statements
of collaborative or individual ambitions and goals frequently diverge from ExxonMobil’s own ambitions, plans, goals, and commitments. ExxonMobil will continue to make independent decisions regarding the operation of its business, including its climate-related and sustainability-related ambitions, plans,
goals, commitments, and investments. ExxonMobil’s future ambitions, goals and commitments reflect ExxonMobil’s current plans, and ExxonMobil may unilaterally change them for various reasons, including adoption of new reporting standards or practices, market conditions; changes in its portfolio; and
financial, operational, regulatory, reputational, legal and other factors.
References to “resources,” “resource base,” “recoverable resources” and similar terms refer to the total remaining estimated quantities of oil and natural gas that are expected to be ultimately recoverable. The resource base includes quantities of oil and natural gas classified as proved reserves, as well as
quantities that are not yet classified as proved reserves, but that are expected to be ultimately recoverable. The term “resource base” is not intended to correspond to SEC definitions such as “probable” or “possible” reserves. For additional information, see the “Frequently Used Terms” on the Investors page
of the Company’s website at www.exxonmobil.com under the header “Resources.” References to “oil” and “gas” include crude, natural gas liquids, bitumen, synthetic oil, and natural gas. The term “project” as used in these publications can refer to a variety of different activities and does not necessarily have
the same meaning as in any government payment transparency reports.
Exxon Mobil Corporation has numerous affiliates, many with names that include ExxonMobil, Exxon, Mobil, Esso, and XTO. For convenience and simplicity, those terms and terms such as “Corporation,” “company,” “our,” “we,” and “its” are sometimes used as abbreviated references to one or more specific
affiliates or affiliate groups. Abbreviated references describing global or regional operational organizations, and global or regional business lines are also sometimes used for convenience and simplicity. Nothing contained herein is intended to override the corporate separateness of affiliated companies.
Exxon Mobil Corporation’s goals do not guarantee any action or future performance by its affiliates or Exxon Mobil Corporation’s responsibility for those affiliates’ actions and future performance, each affiliate of which manages its own affairs. For convenience and simplicity, words like venture, joint venture,
partnership, co-venturer and partner are used to indicate business relationships involving common activities and interests, and those words may not indicate precise legal relationships. These publications cover Exxon Mobil Corporation’s owned and operated businesses and do not address the performance
or operations of our suppliers, contractors or partners unless otherwise noted. In the case of certain joint ventures for which ExxonMobil is the operator, we often exercise influence but not control. Thus, the governance, processes, management and strategy of these joint ventures may differ from those in
these reports. At the time of publication, ExxonMobil has completed the acquisition of Denbury Inc. and is in the process of acquiring Pioneer Natural Resources. These reports do not speak of these companies’ historic governance, risk management, strategy approaches or emissions performance unless
specifically referenced.
These reports or any material therein is not to be used or reproduced without the permission of Exxon Mobil Corporation. All rights reserved.
SUPPLEMENTAL INFORMATION FOR NON-GAAP AND OTHER MEASURES
The Resiliency section of the Advancing Climate Solutions Report mentions modeled operating cash flow in comparing different businesses over time in a future scenario. Historic operating cash flow is defined as net income, plus depreciation, depletion and amortization for consolidated and equity
companies, plus noncash adjustments related to asset retirement obligations plus proceeds from asset sales. The Company’s long-term portfolio modeling estimates operating cash flow as revenue or margins less cash expenses, taxes and abandonment expenditures plus proceeds from asset sales before
portfolio capital expenditures. The Company believes this measure can be helpful in assessing the resiliency of the business to generate cash from different potential future markets. The performance data presented in the Advancing Climate Solutions Report and Sustainability Report, including on emissions,
is not financial data and is not GAAP data.

| 2024 Advancing Climate Solutions | Executive Summary

Low Carbon Solutions
Accelerating the world’s paths to net zero and building a
compelling new business
Emission-reduction markets have the potential to grow rapidly and reach massive
size in a world progressing toward net zero. This provides significant opportunities
for our Low Carbon Solutions business, which represents an important and attractive
element of the company’s plans to profitably grow for many years to come.

Our organization is clear-eyed on the challenges. We also understand the unique and
important contributions we can make, and we are embracing the new opportunities.

Our customers, many governments, and others recognize our combination of

experience, skills, and capabilities that can meaningfully help reduce the emissions of
others.

Our strategy is geared toward ensuring strong returns and value growth as the
energy transition progresses.

Today the world generates about 34 billion metric tons of energy-related

CO₂ emissions per year. Industrial activity, power generation, and commercial
transportation together account for 80% of all energy-related CO₂ emissions.1
And while electric vehicles are important and get a lot of headlines, it’s worth noting
that these sectors account for about eight times the carbon emissions of passenger
vehicles each year. We’re focused on these hard-to-decarbonize sectors. They must
be tackled for society to reach net zero.

And that’s where our capabilities come in.

| 2024 Advancing Climate Solutions

Our company manages molecules. It’s what we have done for decades, and
it’s where we’re focused today. This work involves technologies for capturing,
transporting, and storing molecules; producing hydrogen from other molecules;
and sourcing and co-processing lower-carbon-intensity molecules – all of
which require the same competitive advantages we’ve built in our traditional
businesses. These markets could exceed $6 trillion globally by 2050.3

Government policy plays a key role in building these new markets, especially in
the near term.

Most of our activity is focused in the United States, which is being accelerated
by incentives in the U.S. Inflation Reduction Act (IRA). We support legislation
like the IRA, which provides incentives for companies to be part of the solution.
European policy is currently more prescriptive on how emissions must be
managed, which limits solutions for the hard-to-decarbonize sectors. At this
early stage, supportive policy remains critical to enable emissions reductions,
advance technology, and drive scale to improve costs. Ultimately, given the size
of the challenge and the costs entailed, a market for emissions reduction will be
required to achieve society’s net-zero ambition.

| 2024 Advancing Climate Solutions

 •
•
•
• •

•
•

Technology is already playing a critical role, and it’s where we can add real An example of this is the Mitsubishi Heavy Industries (MHI) post-
value. combustion capture partnership. We’re integrating existing MHI
technology into our “one-stop-shop” carbon capture, transportation,
To expand that advantage further, we’re tailoring our approach in any given and storage offering, and we are working on joint technical
abatement technology as a function of the following: development with MHI to further advance the technology with the goal
of lowering the cost of abatement.
• First, we’re applying resources and driving development in those areas
where we think there is an ample technology runway and where we can • Third, where technology is mature, and we do not bring a unique
add value. These are the areas where we’re working on the development competitive advantage, we’re looking to purchase or license from
of new and potentially breakthrough technologies. Examples include established vendors as a smart buyer. Two good examples here are
direct air capture, alternate methods of hydrogen production, and ammonia production and renewable power, which are both well-
application of our deep capabilities in the subsurface for carbon established technologies with experienced developers.
storage. And while we’re a leader in the technology development
in these programs, we’re continuing to work with other companies, As we strive to play a leading role in the energy transition, we’re pursuing
governments, or academic institutions that bring unique value to the more than $20 billion in lower-emission investments from 2022 through
table. 2027, in addition to the approximately $5 billion Denbury acquisition. About
50% of our lower-emission investments are targeted at reducing emissions
• Second are areas where there is significant runway but where we from operated assets, with the balance going toward reducing the emissions
have less existing advantage. In those areas, we’re looking to partner. of other companies.

| 2024 Advancing Climate Solutions

Carbon capture and storage
ExxonMobil is a global leader in carbon capture and storage

1 We capture the carbon dioxide (CO₂)

from an industrial facility – and we
do it before the CO₂ can escape into 2 The captured CO₂ is transported through
the air. a pipeline to a suitable location where it
can be injected deep underground.

Why carbon capture

(deeper than 3 Eiffel Towers stacked)

and storage?
3 The CO₂ is injected

>3,200 feet
>3,200 feet (>1,000
From the International Energy
meters) underground,
Agency: “Reaching net zero will
beneath impermeable
be virtually impossible” without
rock formations which
carbon capture and storage.
provide a natural
The United Nations' protective seal.
Intergovernmental Panel on Climate
Change said carbon capture and
Impermeable cap rock
storage must be a part of any future
net-zero energy system as a "critical 4 The CO₂ is safely and
mitigation option." securely locked away in CO₂
underground rock
formations.

| 2024 Advancing Climate Solutions

What it is What respected third parties are saying about carbon capture
and storage
Carbon capture, transportation, and storage is just what the term implies.
Once CO₂ is captured at factories or power plants, we transport and inject it Both the International Energy Agency (IEA) and the United Nations
into geologic formations thousands of feet below the earth’s surface for safe Intergovernmental Panel on Climate Change (IPCC) see carbon capture and
and secure storage. The injected CO₂ is held in place by thick, impermeable storage as key to reaching global emissions goals.
seal rocks.
The IEA NZE report concludes that more than 7.6 billion metric tons per
Carbon capture and storage, on its own or combined with hydrogen year of CO₂ will need to be captured and stored by 2050 to reach a net-zero
production, is one of the few proven technologies that could enable future. By comparison, the world’s current capture capacity is about
significant CO₂ emission reductions from high-emitting and hard-to- 40 million metric tons of CO₂ per year.5 The agency has also said “reaching
decarbonize sectors. These include power generation, refining, steel, net zero will be virtually impossible” without carbon capture and storage.6
cement, and petrochemicals manufacturing. According to the Center for
Climate and Energy Solutions, carbon capture and storage can capture more The IPCC estimates that the cost of achieving a 2°C outcome would more
than 90% of CO₂ emissions from power plants and industrial facilities.4 than double without carbon capture and storage.7

We identify opportunities with concentrated streams of CO₂ near sites with

safe and secure storage space, and where we can use existing infrastructure
to gain scale to offer economical solutions to customers.

| 2024 Advancing Climate Solutions

 Denbury acquisition creates strong U.S. Gulf Coast CO₂ infrastructure position

MS AL
TX LA
Industrial emissions sources
ExxonMobil industrial sites
Baton Rouge

Beaumont
CO₂ storage sites
Lake Charles
Baytown
Acquired CO₂ pipeline
Houston Port Arthur

Enhanced oil recovery

Corpus Christi

Note: All information shown is approximate (e.g., storage / pipeline location) and has potential to change as projects are developed and implemented.

Leading now
Another vital element of establishing a successful business is building
With more than 30 years of experience in carbon capture, we lead the a customer base. And in this area, we’re making great progress with
industry in the successful deployment of this technology at scale. We are customers that include a major fertilizer company, an industrial gas
continuing to develop and expand our capacity for storing CO₂ on a long- producer, and a leading steel manufacturer:
term basis.
• CF Industries, a leading global manufacturer of hydrogen and nitrogen
On the U.S. Gulf Coast, we’re building carbon capture and storage products, signed the largest of its kind commercial agreement with us to
infrastructure that will allow industrial customers to work with us to capture and permanently store up to 2 million metric tons of CO₂ emissions
significantly reduce their emissions. We expect the first of our Gulf Coast annually from its manufacturing complex in Louisiana. The project supports
projects to be operational as soon as 2026. Louisiana’s objective of net-zero CO₂ emissions by 2050.
Because carbon capture and storage projects require geologic space,
• Linde, one of the world's leading industrial gases and engineering companies,
we continue to add suitable acreage both onshore and offshore, for this
entered into a long-term commercial agreement with us in which ExxonMobil
use. Building on our long record of successful collaborations with host
will capture, transport, and permanently store up to 2.2 million metric tons
governments around the world, we are also negotiating to gain access to
of CO₂ each year from Linde's new clean hydrogen production facility in
nationally owned acreage that holds potential for CO₂ storage. We also
Beaumont, Texas.
continue working with the local jurisdictions on the appropriate permitting
to sequester CO₂, which will be essential to the success of these projects. • Nucor Corp., North America’s largest steel and steel products producer,
entered into a long-term commercial agreement with us, in which ExxonMobil
will capture, transport, and store up to 800,000 metric tons of CO₂ per year
from Nucor’s manufacturing site in Convent, Louisiana.

| 2024 Advancing Climate Solutions

Working to grow our leadership in carbon capture and storage

CF Industries Linde Nucor Capture

2 + 2.2 + 0.8 = 5
million metric tons
of CO₂ per year
million metric tons
of CO₂ per year
million metric tons
of CO₂ per year
million metric tons
of CO₂ per year

equivalent to replacing nearly 2-million gasoline-powered cars with electric vehicles8

Our acquisition of Denbury Inc. supports these major projects and opens opportunities for many others along the U.S. Gulf Coast and in other locations.
The acquisition provides ExxonMobil with the largest owned and operated network of CO₂ pipelines in the United States. Combining Denbury’s assets and
experience with our capabilities significantly expands our ability to profitably help customers reduce their emissions.
Of Denbury’s 1,300 miles of CO₂ pipeline, roughly 70% is in the Gulf Coast states of Louisiana, Texas, and Mississippi — one of the largest U.S. markets for
CO₂ reduction and home to some of ExxonMobil’s largest integrated refining and chemical sites. Denbury also brings strategically located CO₂ storage sites in
this region.
We believe these synergies will drive strong growth and returns for our shareholders. A cost-efficient transportation and storage system accelerates carbon
capture and storage deployment for both ExxonMobil and our third-party customers. It supports multiple low-carbon businesses – including carbon capture and
storage, hydrogen, ammonia, and biofuels.
Ultimately, we continue to see potential, working with others in the industry, to create a carbon capture and storage business with the capacity to reduce
emissions across the Gulf Coast by more than 100 million metric tons per year.9 This transaction is part of our efforts to do that at a lower cost and faster pace.

What's next
• Improving capture: We continue to research processes, compounds, and materials to capture carbon more efficiently. These innovations include a new metal
organic framework10 that is highly selective to CO₂, as well as advanced amines that provide enhanced efficiency and stability.11
• Developing materials: We are working closely with suppliers and logistics partners to develop new designs for offshore transport, while we partner with a
wide range of experts on materials integrity for pipeline transport and storage of CO₂.
• Studying storage: We are working with leading universities and other research organizations to improve modeling of geologic storage,12 including seal
characterization for containment assessment, as well as optimal long-term monitoring of stored CO₂. Our research and experimental efforts are advancing
knowledge in areas such as monitoring requirements and effective storage capacity.

| 2024 Advancing Climate Solutions

Hydrogen
What it is
Hydrogen is a zero-carbon energy source that can generate the high temperatures needed to produce steel, cement, and refining and chemical products
without carbon dioxide emissions. This means it could serve as an affordable and reliable source of energy for hard-to-decarbonize industrial processes.

Upstream gas production H₂ production H₂ transport Customers

and processing

Hydrogen uses:
• Industrial facilities
• Electricity
CO₂ capture
• Heavy-duty vehicles
• Other transportation
CO₂ transport

CO₂ storage

| 2024 Advancing Climate Solutions

Leading now What's next
Just as we have a long history with carbon capture and storage, we have • Studying technology advances and transport
deep and broad experience with hydrogen as well. We use hydrogen in just We are participating in cross-industry initiatives to identify the technology
about every one of our refining and chemical plants, and we’re looking to advancements and government policies required to deploy low-carbon
expand that. hydrogen at scale. For example, natural gas transmission infrastructure
has the potential to be used for hydrogen transport. Our membership
in the U.S. HyBlend consortium will help address the technical barriers
of blending hydrogen into natural gas pipeline systems.15 In addition to
working with industry organizations to develop hydrogen transportation
standards, we’re working with the U.S. Department of Energy to advance
understanding of the challenges and opportunities involved.
• Energy initiative
We are working with the MIT Energy Initiative16 to develop a new carbon
life-cycle tool that measures the end-to-end carbon emissions from
different technologies, including blue hydrogen. This tool can help inform
policymakers as they consider legislation to incentivize investments in
technologies that are needed to lower societal emissions in an affordable
and practical way.
Baytown future hydrogen plant

In Baytown, Texas, we are developing the world’s largest low-carbon hydrogen

production facility. It’s being designed to produce 1 billion standard cubic feet
of hydrogen per day, which is equivalent to the energy needed to power
1.5 million homes.13 This single project would represent nearly 10% of the Biden
administration’s goal as reflected in the U.S. National Clean Hydrogen Strategy
and Roadmap.14 We expect to capture more than 98% of the CO₂, or about
7 million metric tons per year, associated with producing this hydrogen. The
new plant could supply Gulf Coast industrial customers, as well as our own
facilities in the Baytown area, with clean-burning hydrogen fuel for process
operations. In addition, tapping into our certified lower-emission natural gas
from the Permian Basin should further lower carbon intensity that will be very
difficult for others to match. Front-end engineering is underway. Startup is
expected as soon as 2028.

| 2024 Advancing Climate Solutions

Lower-emission fuels What's next
What they are • Maritime goals: ExxonMobil supports the International Maritime
Organization’s (IMO) ambition to reduce total annual GHG emissions
These fuels generate less emissions over their life cycle than the traditional from international shipping to reach net-zero by or around 2050. We are
fuels they replace. They include biofuels made from renewable sources working to help our customers determine their best route toward meeting
like plants and waste biomass and synthetics made from hydrogen and the IMO’s GHG emission-reduction goals. As part of this initiative, we
captured carbon dioxide. Lower-emission fuels have the high energy are supplying ExxonMobil bio marine fuel oil blends at our Singapore and
density required to move heavy trucks. Renewable diesel can reduce carbon Amsterdam-Rotterdam-Antwerp bunkering hubs.
emissions by up to 70% compared to conventional diesel.17 Demand for
these fuels is expected to grow rapidly, driven by the aviation, marine, and • Testing with Toyota: ExxonMobil is exploring innovative fuel blends
heavy-duty trucking industries. Our Global Outlook projects almost with the potential to reduce emissions from road transportation by up
9 million oil-equivalent barrels per day of these fuels by 2050, more than to 75% versus conventional fuels available today. In a test we conducted
four times 2021 levels. with Toyota Motor Corp. in 2023, our fuels under development proved
compatible with today’s vehicles and existing infrastructure. Fuels that
Our Product Solutions business is focused on growing lower-emission fuels work with current networks will reduce or eliminate the need to build new
by leveraging current technology and infrastructure, while our Low Carbon pipelines and tanks, accelerating and lowering the cost of deployment.
Solutions business is focused on innovation in the next generation of low-
• Co-processing: We are conducting co-processing trials in our facilities
emission fuels which are supported by our other low-carbon businesses like
using proprietary technology to produce lower-emission fuels, including
carbon capture and storage.
sustainable aviation fuels. We are evaluating how to deploy our capacity
We’re exploring opportunities to combine biomass-based fuel production to co-process 100,000 barrels per day of lower-emission fuels to markets
with carbon capture and storage, enabling very low- or negative-carbon where supportive policy exists. The ability to process biofeed and
intensity fuel production. We’re also looking at how we can efficiently conventional feedstock together through an existing fluid catalytic cracker
transform natural gas into methanol-based fuels. Our existing capability or hydrotreater will allow for faster, lower-cost delivery of these fuels
to convert methanol to multiple end-use fuels, such as marine and jet fuel, to customers compared to construction of new facilities requiring large
could enable a range of low- to zero-emissions fuels. Low-emission fuels capital investments.
can utilize existing distribution infrastructure, further enabling their cost- • Fats to fuel: We are evaluating opportunities to lower life-cycle emissions
effective deployment. through conversion of bio-based feedstocks for diesel production. With
the processes ExxonMobil has developed and our proprietary dewaxing
Leading now catalyst, we can convert waste fats or vegetable oils into renewable fuels
• Strathcona, Canada: We are ramping up renewable fuel production with less byproduct formation and hydrogen consumption than other
at our Imperial Oil refinery near Edmonton, where we’re building the methods. With an additional step, and provided we can obtain ample
technology and infrastructure to provide renewable diesel to several feedstocks, we could use this same process to make sustainable aviation
industries in western Canada. When completed in 2025, the facility is fuels.
expected to be the largest of its kind in Canada, with capacity of • New jet fuel technology: We recently announced a new technology that
20,000 barrels a day. can produce jet fuel using renewable methanol as the feedstock.19 This
• Singapore: We leveraged our integrated refining and petrochemical methanol has a lower carbon intensity and can be made through either
complex in Singapore and our logistics network in 2022 to deliver the gasification of biofeeds, such as wood waste, or captured CO₂ and H₂
first cargo of certified sustainable aviation fuel (SAF) to Changi Airport as made by electrolysis of water using renewable electricity. The lower-
part of a one-year pilot.18 emission methanol can be converted into sustainable aviation fuel using
our innovative technology. We expect this process will provide a higher
yield of jet fuel than other techniques for the same feedstock, with the
potential to be used to make other fuels or chemicals.
| 2024 Advancing Climate Solutions
Lithium
What it is Leading now
Lithium is used for the batteries in electric vehicles and portable In November, we announced plans to produce lithium carbonate for use
electronic devices. Batteries account for 80% of global lithium use. Global in EV battery manufacturing by employing direct lithium extraction (DLE)
consumption of lithium was 134,000 tons in 2022, up 41% from 2021, technology in southern Arkansas. By separating the lithium from deep
according to the U.S. Geological Survey.20 The International Energy Agency brine reservoirs using available technologies, we’re working to produce this
expects demand to keep rising, potentially reaching over 1 million tons by critical mineral more efficiently and with fewer environmental impacts than
2040.21 traditional hard rock mining. Our existing skills in subsurface exploration,
drilling, refining, and chemicals will allow us to bring meaningful scale to this
technology and provide auto battery manufacturers with a more reliable,
lower-carbon lithium supply option.22

| 2024 Advancing Climate Solutions

Other solutions
Expanding our advantage through integrated value chains

Carbon capture and storage, hydrogen, lower-emission fuels, and lithium are far from the only emission-reduction opportunities in the world. We are always
looking for opportunities that fit our strengths and leverage our current capabilities and businesses.

For example, many of our natural gas and LNG customers have significant post-combustion emissions that they’d like to abate. We offer a “one-stop shop” for
CO₂ capture, transportation, and storage that will enable these customers to reduce their emissions.

We’re working to accelerate the world’s paths to net zero. We’re building on our technology, scale, project execution, and integration advantages to establish
a compelling new business. We’re leading now with real-world projects moving into execution, and a pipeline of future opportunities. We believe this new
business complements our existing businesses and will underpin the corporation’s future growth and returns for decades to come.

| 2024 Advancing Climate Solutions

Footnotes
1. ExxonMobil 2023 Global Outlook.
2. Total addressable market based on ExxonMobil analysis of the IPCC’s Sixth Assessment Report Scenarios Database hosted by IIASA for carbon capture and storage, wind, solar, hydrogen, nuclear, biofuels, geothermal, and hydropower.
Secondary energy demand and prices in 2050 in the Likely Below 2°C scenarios (Category C3) were used, where available, to calculate an estimate of potential market revenue. Carbon capture and storage estimate includes both CCS and
direct air capture and used price of carbon for pricing estimate. Biofuels estimate used liquids pricing for pricing estimate. 2020 dollars.
3. Ibid.
4. Center for Climate and Energy Solutions, https://www.c2es.org/content/carbon-capture/.
5. International Energy Agency (2021), Net Zero by 2050, IEA, Paris, https://www.iea.org/reports/net-zero-by-2050.
6. IEA (2020), Energy Technology Perspectives 2020: Special Report on Carbon Capture Utilisation and Storage. https://www.iea.org/reports/ccus-in-clean-energy-transitions.
7. O. Edenhofer et al., Climate Change 2014: Mitigation of Climate Change. Contribution of Working Group III to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change: https://www.ipcc.ch/site/assets/
uploads/2018/02/ipcc_wg3_ar5_full.pdf.
8. ExxonMobil analysis based on assumptions for U.S. in 2022, including average distance traveled, fuel efficiency, average power grid carbon intensity, electric vehicle charging efficiency, and other factors. Gas-powered cars include light-
duty vehicles (cars, light trucks and SUVs).
9. Market potential for emission reduction opportunity based on ExxonMobil analysis of CO₂ pipeline routes, current and potential capacity, potential emitters in the U.S. Gulf Coast market, and potential infrastructure upgrades. Subject to
additional investment by ExxonMobil, customer commitments, supportive policy, and permitting for carbon capture and storage projects.
10. E. J. Kim; R. L. Siegelman; H. Z. Jiang; A. C. Forse; J.-H. Lee; J. D. Martell; P. J. Milner; J. M. Falkowski; J. B. Neaton; J. A. Reimer. Cooperative carbon capture and steam regeneration with tetraamine-appended metal–organic frameworks.
Science 2020, 369 (6502), 392-396.
11. P. Kortunov, M. Siskin, L. Baugh, D. Calabro “In Situ Nuclear Magnetic Resonance Mechanistic Studies of Carbon Dioxide Reactions with Liquid Amines in Aqueous Systems: New Insights on Carbon Capture Reaction Pathways” Energy
Fuels, 29, 9, 5919–5939 (2015).
12. G. Wen, M. Tang, S. M. Benson, Towards a predictor for CO₂ plume migration using deep neural networks, Int. J. Greenhouse Gas Control, 105, 103223, 2021.
13. ExxonMobil analysis leveraging the average annual electricity consumption for a U.S. residential utility customer in 2021 per https://www.eia.gov/tools/faqs/faq.php?id=97 and assumed efficiency of a natural gas combined cycle plant on a
lower heating value basis.
14. U.S. National Clean Hydrogen Strategy and Roadmap: https://www.hydrogen.energy.gov/docs/hydrogenprogramlibraries/pdfs/us-national-clean-hydrogen-strategy-roadmap.pdf.
15. HyBlend: Pipeline CRADA Materials R&D, https://www.hydrogen.energy.gov/docs/hydrogenprogramlibraries/pdfs/review22/in035_san_marchi_2022_o-pdf.pdf.
16. E. Gencer, S. Torkamani, I. Miller, T. Wu, F. O’Sullivan, Sustainable energy system analysis modeling environment: analyzing life-cycle emissions of the energy transition, Applied Energy 277 (2020) 115550.
17. Based on ExxonMobil analysis using Argonne National Labs’ GREET2022 model and published fuel carbon intensity from California LCFS regulations. Argonne National Laboratory GREET model: https://greet.anl.gov/, California Air
Resources Board Low Carbon Fuel Standard Regulation: https://ww2.arb.ca.gov/our-work/programs/low-carbon-fuel-standard/lcfs-regulation.
18. EM Press Release (Jul 2022): https://www.exxonmobil.com/en/aviation/knowledge-library/resources/em-marks-first-certified-blended-sustainable-aviation-fuel-delivery-to-singapore-changi-airport.
19. EM Press Release (Oct 2023): https://www.exxonmobilchemical.com/en/resources/library/library-detail/109708/exxonmobil_aramco_neom_methanol_to_gasoline_technology_en.
20. https://pubs.usgs.gov/periodicals/mcs2023/mcs2023-lithium.pdf.
21. https://www.iea.org/data-and-statistics/data-tools/critical-minerals-data-explorer.
22. Expected smaller footprint of lithium mining and expected lower carbon and water impacts: EM analysis of external sources and third party life-cycle analyses. 1) Vulcan Energy, 2022 https://v-er.eu/wp-content/uploads/2022/04/Apr-Corp-
Preso.pdf, Minviro publication. Grant, A., Deak, D., & Pell, R. (2020). 2) The CO₂ Impact of the 2020s Battery Quality Lithium Hydroxide Supply Chain-Jade Cove Partners. https://www.jadecove.com/research/liohco2impact. Kelly, J. C., Wang,
M., Dai, Q., & Winjobi, O. (2021). 3) Energy, greenhouse gas, and water life cycle analysis of lithium carbonate and lithium hydroxide monohydrate from brine and ore resources and their use in lithium ion battery cathodes and lithium ion
batteries. Resources, Conservation and Recycling, 174, 105762.

| 2024 Advancing Climate Solutions

Methane
Driving reductions in methane emissions
Highlighting our progress

What we've done What we're doing

• Cut operated methane emissions intensity in half since 2016 • On plan to reduce methane intensity versus 2016 across all operated
assets 70%-80% by 20301

• Eliminated routine flaring in Permian Basin operated assets • On track to achieve zero routine flaring across all operated upstream
assets by 2030, consistent with World Bank Zero Flaring Initiative2

• Eliminated “high-bleed” pneumatic devices in our U.S. operated • On track to eliminate natural gas-driven pneumatic devices by 2025 in our
unconventional assets key U.S. unconventional operated assets

• In 2022 alone, we surveyed 2.3 million components with optical gas • Expanding continuous monitoring program in the Permian to cover
imaging cameras and 1.3 million components with aerial flyovers ~700 unconventional production sites by 2025

• Progressed collaborations including deciding to join the U.N. Oil and Gas • Partnering with Scepter to launch 2 monitoring satellites in 2025 with a
Methane Partnership (OGMP) 2.0 plan to have 24 in place over the next three years

• Launched our Center for Operations and Methane Emissions Tracking

(COMET) in 2022 to provide near-continuous real-time monitoring

| 2024 Advancing Climate Solutions

Reducing corporate-wide methane emissions intensity Here are a few reasons why natural gas is such a great option:

• Choosing natural gas-fired electricity generation to replace older,

inefficient coal plants can reduce greenhouse gas emissions by up to
60%, while producing fewer air pollutants.

• Natural gas resources are geographically and geologically diverse

and abundant; natural gas is reliable and versatile for everything from
power to transportation to home use.

• Natural gas is a reliable source for the required backup power

generation when the wind isn’t blowing enough to turn wind turbines
and the sun isn’t shining to fuel solar panels.

But, as with any form of energy, there are tradeoffs. For natural gas, in
addition to CO₂, it’s the issue of fugitive methane – or put simply, methane
that is leaked to the atmosphere, where it is a potent greenhouse gas. It
exists for a short time when compared to CO₂, but with a higher global
warming potential. In fact, on a 100-year timespan, each kilogram of
methane equals about 30 kilograms of CO₂.3

Methane: The other greenhouse gas That’s why it’s important for us to keep methane contained and managed
in our operations – in our pipeline networks, in our storage tanks, and in our
Methane is a deceptively simple molecule. processing equipment.

With just one carbon and four hydrogen atoms, it’s the principal component Managing methane is good business. Fewer methane leaks also means
in natural gas. Methane has the high energy density needed to make more product to sell.
natural gas a reliable and flexible energy source that is already helping to
meaningfully reduce carbon emissions around the world and will continue
to be critical in achieving a lower-emission future. Our Global Outlook
forecasts natural gas to make up more than 25% of the global energy mix in
2050.

| 2024 Advancing Climate Solutions

Methane at ExxonMobil
Methane emissions in our industry come from four primary sources:

• Flaring is the burning of excess natural gas for safety or other reasons, resulting in CO₂ emissions.
• Venting is when pneumatic devices, storage tanks, dehydration units, and other components of our operations sometimes release excess methane from
our equipment to the atmosphere to reduce pressure and help ensure personnel safety.
• Fugitive emissions that occur when we experience unintentional leaks from our equipment.
• Combustion slip is uncombusted methane left over in the exhaust of natural gas fired engines used to power operations.

As reported in our data table, methane emissions at ExxonMobil were approximately 140,000 metric tons CH₄ in 2022, about 4% of our total Scope 1 emissions
on an operated basis. The charts below illustrate where we have our biggest opportunities to tackle the methane challenge and provide greater transparency
into the sources of methane emissions from our upstream operations, which comprise 96% of our methane emissions.

ExxonMobil methane emissions4

By location By source The methane challenge

Methane is odorless and colorless. When leaked,
there are only a small number of methane
16% Permian 16% molecules relative to the volume of surrounding
Fugitives air. A gust of wind can easily disperse those
39% molecules, obscuring the source. Our assets are
Other U.S. Pneumatic 15% often in remote locations with extreme weather
60% decives Engines conditions, making detection a challenge.
76% Finding methane leaks in those environments,
14%
16% Flares across vast acreage, is not simple. Methane
Others emissions are not concentrated at certain points
or at certain times in our operations. Leaks can
be short in duration, low in volume, infrequent in
occurrence, and therefore harder to identify.
24%

United States All Non-U.S.

| 2024 Advancing Climate Solutions

 Monitoring and detection
Mitigating uncertainty In our ongoing efforts to target and eliminate methane emissions,
we continue to develop and deploy enhanced technologies for rapid
detection, mitigation, and quantification of sources of methane at
Satellite imaging our operated assets.
Rapid detection of
non-routine sources Aerial flyovers
On the ground, in the air, and in space, the technology and
Continuous ground monitors
processes we use to identify non-routine methane emissions
provide us with a wide range of data points to inform and
continuously improve our mitigation efforts. At this time, we’re
advancing detection technologies in nine countries at operated
Elimination of assets that we estimate account for more than 80% of our methane
Engine electrification
routine sources
emissions.

Low-Earth orbit satellite

Zero routine flaring
Elimination of
potential non-routine zero Pneumatic device phase out by 2025
and routine sources Tankless design on new build

Methane balloon

Aiming for zero

Aircraft

In March 2022, ExxonMobil joined others in our industry to launch

the Aiming for Zero Methane Emissions Initiative. Our efforts
support the goals of the Global Methane Pledge and the U.S.
Methane Emissions Reduction Plan – as well as ExxonMobil’s 2050
net-zero ambition.
Drone & UAVs

We’re implementing a multilayered approach that includes leading-

edge technology to monitor, measure, and mitigate methane
emissions.

Ground monitoring

| 2024 Advancing Climate Solutions

Methods of detection
Method Technologies Detection thresholds* Considerations ExxonMobil sites**

Manual detection • Handheld devices Less than 1 kg/hr Advantages: Precise location of emissions, using services • Permian Basin, U.S.
• Portable detectors already available in some locations • Eagle Ford, U.S.
• Bakken, U.S.
Limitations: Labor intensive, periodic, and subject to human
error. Does not provide quantification. No access to difficult- • Appalachian Basin, U.S.
to-reach locations. • Haynesville, U.S.
• LaBarge, U.S.
• Guyana FPSO
• Hebron, Canada
• Kearl Oil Sands, Canada
• Cold Lake, Canada
• Normal Wells, Canada
• Malaysia
• Nigeria†
• Angola†
Facility-scale, near- • Fixed cameras 25 kg/hr – less than 1 kg/hr Advantages: Stationary monitoring, offering potential 24/7 • Permian Basin, U.S.
continuous monitoring • On-the-ground coverage of an individual site, including duration of leaks. • Freestone, U.S.
sensors
Limitations: Requires precise weather data for quantification.
Additional research and innovation still needed to make this
technology scalable.
Facility-scale, periodic • Drones Less than 1kg/hr Advantages: Can cover multiple sites in their entirety, including • Permian Basin, U.S.
monitoring • Mobile labs areas unreachable by handheld devices. • Freestone, U.S.
Limitations: Requires individual site visits. Airspace regulations
may restrict drone use. Monitoring is not continuous.
Aerial detection • Airplanes 50 kg/hr – less than 3 kg/hr Advantages: Can cover hundreds of sites per day, often using • Permian Basin, U.S.
• High-altitude platforms existing technology. • Eagle Ford, U.S.
(i.e., balloons) • Bakken, U.S.
Limitations: Additional detection often needed to identify
sources within facilities. • Appalachian Basin, U.S.
• Haynesville, U.S.
• Germany†
• Australia†
Satellite detection • Low-earth orbit 25,000 kg/hr – 100 kg/hr Advantages: Global, near-continuous coverage. Potentially • Permian Basin, U.S.
networks lower cost. • Cold Lake, Canada
Limitations: High detection thresholds and sensitivity to
environmental conditions.

*Detection thresholds vary depending on human and environmental factors, including weather and wind conditions.
**Includes sites where these technologies have been piloted or deployed.
†
Planning stages.

| 2024 Advancing Climate Solutions

The technology to detect and quantify methane emissions continues to COMET: Bringing it all together in real time
improve through collaboration and innovation supported by constructive
government policy. While the current industry and regulatory approach on Your home smoke detector serves an important purpose. When the
the ground is focused on manual leak detection, we’re continuing to invest alarm sounds you know that it has sensed a problem, whether it’s smoke
to develop and deploy technologies to increase the efficiency, precision, and or just a low battery, you know that you need to respond. Our Center
coverage of our detection abilities. for Operations and Methane Emissions Tracking (COMET) operates on
the same simple principle, scaled to cover massive acreages with diverse
For example, Project Astra is a collaboration of universities, environmental sources of data.
groups, and industry partners that is developing an innovative sensor Launched in 2022, COMET is a $20 million investment to centralize,
network to continuously monitor methane emissions across large areas of continuously monitor and analyze methane emissions data from
Texas. This high-frequency monitoring system will give us the tools for quick sources across our operations in the Permian Basin for rapid detection
leak detection and repair at specific locations, lowering costs and improving and mitigation. When fully deployed at all 700 operated sites across
efficiency. After the completion of the first phase of the project in early 1.8 million acres in the Permian, COMET will ultimately provide near-
2023, the Department of Energy approved additional funding to extend continuous, real-time monitoring in the region. With opportunities to
Project Astra basin-wide. expand outside the Permian Basin, COMET is a potential game changer
Advances in facility-scale, near-continuous monitoring like this will enable for ExxonMobil and the industry.
sensitive, specific detection of methane emissions over time. Periodic
monitoring using airplanes or drones can further expand coverage on land
to dozens of onshore sites per day, depending on local conditions and
logistics.

In the air, the moment-in-time observations provided by airplane surveys

continue to be a valuable source of data, but we’re going higher to enhance
detection across larger areas on a more continuous basis.

In 2023, we achieved an important milestone in our collaboration with

Scepter, using a high-altitude balloon to test advanced imaging technology
and proprietary data processing platforms to detect methane emissions
across a large operating area in the Permian Basin. The data collected is Our methane-reduction roadmap in the Permian Basin
the first of its kind, representing the first real-world demonstration of the Back in 2021, we became the first company to announce plans to
potential for continuous methane monitoring over a broad region. achieve net zero by 2030 for Scope 1 and 2 greenhouse gas emissions
from unconventional operated assets in the U.S. Permian Basin.
Finally, on the frontier of global emissions detection, we’re venturing into
Reducing methane emissions is a key part of that plan.
space. We’re working with Scepter and Amazon Web Services to develop
satellite-based technology to design and optimize satellite placement and To date, we have focused largely on improving detection and response
coverage, initially focused on capturing methane emissions data from our times to potential leaks, an effort that has led us to be recognized as
operations in the Permian Basin. Scepter anticipates increasing coverage an industry leader by the Environmental Defense Fund in its three-year
with more than 24 satellites over three years, forming a large constellation direct measurement study in the Permian Basin.5 Currently, remote
network capable of monitoring oil and natural gas operations around the operators receive automated alerts when an event is detected, analyze
world. the data, and dispatch crews.
In the years ahead, we are focused on expanding these continuous
monitoring and response capabilities, as well as automating the
collection and analysis of data through integrated operations support
centers like COMET to advance quantification of methane and analysis
of trends over time.
| 2024 Advancing Climate Solutions
Measurement and reporting Understanding emission factors
Emission factors, consistent with regulatory reporting requirements and
We have reported our methane emissions publicly every year since 2014. established by reputable third parties, help us to further understand our
This is an important part of our transparency efforts, and it enables us methane emissions. This standardized practice helps us to credibly estimate
to work with academia, peers in our industry, and other stakeholders to emissions, covering common sources across our business.
continuously improve our shared understanding of methane emissions.
What are emission factors? Emission factors add to observational and
The data we report is based on internationally recognized methodologies other data to provide an estimate for average methane emissions. Classes
and compiled each year by determining emissions by source at each of equipment, types of activities, or other variables are multiplied by the
operated asset across our company. With formal and informal guidance relevant emission factor to provide a credible estimate for our emissions
from frameworks like Veritas and the Oil and Gas Methane Partnership, our inventory. Derived from sources like the American Petroleum Institute and
emissions data reporting improves each year, even as we’ve already begun the U.S. EPA Greenhouse Gas Reporting Program, emissions factors help
the work of reducing the emissions themselves. oil and natural gas companies track methane emissions in a consistent way.
As direct measurement and detection technologies evolve, emission factors
Methane is measured through interconnected processes. Snapshots of are expected to be used less industry-wide.
methane concentrations in the atmosphere provide, as described above,
one input. Considering local weather patterns, the size and shape of an We have long been a leader in advocating for strong measurement,
observed methane plume, and other environmental factors helps us model reporting, and verification standards. Combined with the ongoing
the rate and volume of the emissions. This process guides our timely innovations in monitoring and detection, improvements in measuring and
mitigation efforts by identifying large or unexpected sources of methane. quantifying methane emissions are leading to a deeper understanding of
emission sources and mitigation actions. We are focused on emissions
mitigation and the transition to observation-based emission quantification
of potential non-routine sources.

| 2024 Advancing Climate Solutions

Mitigating methane emissions Replacing pneumatic devices
Pneumatic control devices have been used in the oil and natural gas
Our detection and quantification work continues to improve the accuracy industry for more than a century to operate valves that control liquid levels,
of the methane volumes and intensity we report each year – and helps pressure, temperature, and other process variables. By using natural gas
us assess the scale of the methane challenge and the effectiveness of the from the production site, these devices safely and reliably perform their
work we’re already doing. The framework we’ve established and shared has tasks in a wide range of extreme conditions around the world.
enabled the development of consistent and comparable data which, along
with growing field measurements, guide our mitigation efforts. They also emit methane. Each time a pneumatic device is used, a small
amount of methane is vented. Multiply this by the number of devices
The Methane Guiding Principles includes ExxonMobil’s framework as at each site, and it can add up. More than a third of our total methane
a resource for regulators in their Methane Policy toolkit, with potential emissions come from pneumatic devices, which is why we have eliminated
applications across the natural gas value chain. We are proud of this “high-bleed” devices across our U.S. unconventional operated assets that
thought leadership and our contribution to this challenge. vent methane at a higher rate and have made replacement of the rest a
priority.
To lower our methane intensity, we are evolving the designs of our facilities,
continuously improving our operations processes and protocols, and Unfortunately, there’s no one-size-fits-all solution to this challenge. In
pursuing advanced technologies to meet the needs of our customers with some cases, when reliable electricity is available, it’s as simple as installing
fewer emissions. an air compressor or a mechanical valve. In other cases, it means looking
outside our industry, collaborating with others to enhance existing
Flaring is perhaps our most visible source of methane emissions because controllers and other technologies to mitigate or eliminate emissions. It
the flame can be seen by the naked eye. In 2022, flaring comprised about can even mean using existing equipment in new ways, such as substituting
14% of our operated methane emissions. It occurs as a safety measure nitrogen, which is an inert gas with no global warming potential, for
when the volume of gas exceeds the capacity of our facilities. When these operations instead of natural gas.
needs are anticipated and planned, we call that “routine flaring,” and we are
working to eliminate this process from our operations. And the benefits extend beyond the individual piece of equipment. When
retrofitting our existing assets, we often replace the infrastructure, which
We have committed to eliminate routine flaring in line with the World Bank improves reliability and often further reduces opportunities for leaks and
Zero Routine Flaring Initiative in our operated assets by 2030 – something fugitive emissions.
we achieved in our operated Permian Basin unconventional assets at the
end of 2022. In addition to installing and upgrading our equipment, we Looking ahead, we’re continuing to conduct trials to test emerging
continue to optimize our operations to eliminate routine flaring in the solutions, deploy the most promising ones, and share what we learn with
remaining locations. others to advance the shared ambition of near-zero methane emissions.
Ongoing enhancements – large and small, complex and simple, proven and
leading edge – are further accelerating our efforts to remove, reduce, or Certified natural gas
avoid methane emissions.
As part of our methane management efforts, we continue to expand the
In some cases, we’re doing more with less, such as when we modify designs volume of natural gas production that is independently certified by the
to eliminate components like pneumatic devices. In other circumstances, nonprofit MiQ. The certification from MiQ verifies that our natural gas is
we’re simply doing the same things, but better. For example, we continue produced with lower methane intensity, which helps us meet customer
to improve the seals on centrifugal compressors and expand gas collection demand for energy produced with lower emissions, and it also helps us
systems. identify areas for improvement.

To put it succinctly, we take an approach where every feasible option is on Over the course of 2022, our most recent year of full data, we increased
the table as we explore and develop solutions to rapidly, safely, and reliably our Permian Basin MiQ certified natural gas volume to approximately
mitigate methane emissions. 700 million cubic feet per day produced from our facilities in Poker Lake,
New Mexico. We have also successfully recertified our Appalachia facilities
which produce approximately 300 million cubic feet per day. We are
working to expand certification in other unconventional operated assets.

| 2024 Advancing Climate Solutions

Advocacy and collaboration Teaming up to tackle methane emissions
We know we can’t go it alone. Collaboration will be vital as we implement
The energy industry is collaborative by nature. We work with industry
solutions to support society’s net-zero future, and by working with a wide
partners and regulators around the world to advocate for strong and
range of universities, academic consortiums, environmental groups, and
consistent measurement, reporting, and verification standards – and we
more, we’re advancing leading-edge research and piloting new technologies
collaborate with universities, industry groups, and others to advance the
to help the industry and our company measure, reduce, and report methane
technologies and fundamental science related to methane emissions.
emissions.
Supporting sound policy
Among others, we’re members of (*ExxonMobil is a founding member):
The model regulatory framework we published in 2020, and have
• Collaboratory to Advance Methane Science*: A research collaboration
shared broadly, provides a blueprint for industry-wide regulation, urging
with energy leaders to explore, discover, and quantify methane emissions,
stakeholders, policy makers, and governments to develop comprehensive
and develop solutions to reduce them.
rules for methane emissions.
• Stanford Natural Gas Initiative*: A collaboration of more than 40 research
We work with the U.S. Environmental Protection Agency, the Bureau
groups from multiple disciplines working with industry partners and
of Land Management, the Pipeline and Hazardous Materials Safety
others to maximize the social, economic, and environmental benefits of
Administration, and others to encourage practical and effective regulation
natural gas.
of methane emissions. In the United States alone, there are half a dozen
agencies currently conducting important work on methane rulemaking, • Project Astra*: A partnership to monitor emissions across the Permian
which, if not well coordinated, could lead to overlapping and potentially Basin with a first-of-its-kind sensor network, led by The University of
conflicting regulations. This is why we’re focused on consistent regulation Texas at Austin and bringing us together with the Environmental Defense
that incentivizes technology deployment and builds upon the industry-wide Fund, Chevron, Pioneer Natural Resources Company, and GTI Energy, a
voluntary efforts that have been highly successful. research organization focused on energy solutions.
Our model framework for industry-wide methane regulations underpins our • Veritas: GTI Energy’s Methane Emissions Measurement and Verification
advocacy efforts, and in recent years, the commentary and guidance we’ve Initiative, pursuing credible, comparable methane emissions measurement
offered regulators includes: and accelerating actions that reduce methane emissions.
• Comment letters to the U.S. EPA in November 2019, January 2022, and
• Project Falcon*: An industry partner study that aims to determine the
February 2023 related to new source performance standards.
best way to deploy fixed sensors for continuous methane monitoring at
• A joint comment letter about continuous monitoring to the U.S. EPA, individual facilities.
co-signed with five other companies in the energy, power, and aviation
industries. • The Environmental Partnership*: A collaboration among U.S. oil and
natural gas companies of all sizes to take action on environmental
• Our comment letter to the Pipeline and Hazardous Materials Safety performance, transfer knowledge, and foster collaboration among
Administration on their proposed rules for leak detection. stakeholders.
• Testimony at the U.S. EPA Methane Detection Technology Workshop.
• World Bank Global Gas Flaring Reduction Partnership*: A multi-donor
trust fund composed of governments, companies, and multilateral
organizations committed to ending routine gas flaring at production sites
across the world.
• Methane Guiding Principles*: A partnership of more than 50 companies
and organizations to enable action in industry and government to reduce
methane emissions from the natural gas supply chain.
| 2024 Advancing Climate Solutions
Sharing knowledge and insight
Throughout our journey, we’re sharing what we learned through peer-reviewed publications either co-authored by ExxonMobil or funded in part by the company.
Since 2016, more than 23 articles have been published in academic and trade journals. Topics covered include tiered leak detection and repair programs, global
to point-source methane emissions quantification, next-generation imaging, satellite capabilities, region-specific life-cycle greenhouse gas emissions of oil and
natural gas, and much more.
Our work has been shared in technical briefings at venues like the American Geophysical Union and European Geophysical Union annual meetings, the American
Petroleum Institute’s Environmental Partnership meetings, and Stanford University’s Methane Emissions Technology Alliance.
We’ve made significant progress, having cut our operated methane emissions in half since 2016, and we’re not finished. By 2030, our methane-reduction plans
include a 70%-80% reduction in corporate-wide methane intensity across our operated assets, and we are working to eliminate routine flaring in our global
operated upstream assets in line with the World Bank Zero Routine Flaring Initiative. These efforts support the goals of the Global Methane Pledge and the U.S.
Methane Emissions Reduction Plan, as well as our own 2050 net-zero ambitions.

Footnotes
1. ExxonMobil’s 2030 GHG emission reduction plans: https://corporate.exxonmobil.com/news/news-releases/2021/1201_exxonmobil-announces-plans-to-2027-doubling-earnings-and-cash-flow-potential-reducing-emissions. ExxonMobil’s 2030
plans are expected to result in a 20%-30% reduction in corporate-wide greenhouse gas intensity, including reductions of 40%-50% in upstream intensity, 70%-80% in corporate-wide methane intensity, and 60%-70% in corporate-wide
flaring intensity. Based on Scope 1 and 2 emissions of ExxonMobil operated assets (versus 2016). ExxonMobil’s reported emissions, reductions, and avoidance performance data are based on a combination of measured and estimated
emissions data using reasonable efforts and collection methods. Calculations are based on industry standards and best practices, including guidance from the American Petroleum Institute (API) and Ipieca. There is uncertainty associated
with emissions, reductions, and avoidance performance data due to variation in processes and operations, the availability of sufficient data, quality of those data, and methodology used for measurement and estimation. Performance data
may include rounding. Changes to performance data may be reported as part of the company’s annual publications as new or updated data and/or emission methodologies become available. We are working to continuously improve our
performance and methods to detect, measure, and address greenhouse gas emissions.
2. References to routine flaring herein are consistent with the World Bank’s Zero Routine Flaring by 2030 Initiative/Global Gas Flaring Reduction Partnership’s principle of routine flaring and excludes safety and non-routine flaring.
3. IPCC AR6 Report, Chapter 7: The Earth’s Energy Budget, Climate Feedbacks and Climate Sensitivity (Table 7.15): https://www.ipcc.ch/report/ar6/wg1/downloads/report/IPCC_AR6_WGI_Chapter07.pdf.
4. ExxonMobil methane emissions estimates as of year-end 2022.
5. https://blogs.edf.org/energyexchange/wp-content/blogs.dir/38/files/2022/11/PermianMAPFinalReport.pdf.

| 2024 Advancing Climate Solutions

Positioning for a lower-emission future
Our strategic priorities
We remain focused on five strategic priorities to create sustainable solutions that improve quality of life and meet society’s evolving needs. Our vision is to lead
industry in innovations that advance modern living and a net-zero future.

• Leading performance
Industry leader in operating and financial performance.

• Essential partner
Value through win-win solutions for our customers, partners, and broader stakeholders.

• Advantaged portfolio
Portfolio of assets and products outperform competition and grow value in a lower-emission future.

• Innovative solutions
New products, technologies, and approaches to accelerate large-scale deployment of solutions essential to modern life and lower emissions.

• Meaningful development
Diverse and engaged organization with unrivaled opportunities for personal and professional growth doing impactful work to meet society’s needs.

We plan to play a leading role in the energy transition as we retain investment flexibility across a portfolio of evolving opportunities to maximize shareholder
returns.

| 2024 Advancing Climate Solutions

Positioning for a lower-emission future
We have evolved our operating model, enabling efficiencies that better leverage the scale of an increasingly integrated company. At the same time, we have
centralized many of the skills and capabilities required by our business, allowing us to improve allocation of critical resources; drive continuous improvement,
including detection and measurement of emissions; and grow value. This serves us well in a variety of future scenarios, irrespective of the pace of the energy
transition.
Core businesses Upstream
• Upstream strengthens energy security by expanding access to reliable We are well positioned to help meet the need for oil and natural gas
and affordable supply while focusing on achieving industry-leading through the next decade and beyond, delivering value by reducing
emissions intensity. structural costs, growing high-value production at low cost of supply, and
improving emissions intensity.1 As part of our net-zero ambition, we have
• Product Solutions is the world’s largest downstream and chemical identified more than 100 potential modifications to reduce emissions
company developing high-value innovative products needed by modern across all upstream operated assets including energy efficiency measures
society. and equipment upgrades. Examples include carbon capture and storage
at operations in the United States, Australia, and Canada; electrification of
• Low Carbon Solutions helps to lower society’s greenhouse gas
compressors and heaters in our Permian operations; and replacement of
emissions by providing solutions in growing markets for carbon
pneumatic devices with electrical or mechanical devices to eliminate fugitive
capture and storage, hydrogen, and biofuels. It also supports reducing
emissions in natural gas operations. These examples, as shown in the chart
emissions from our major operations and products.
below, demonstrate our capacity to lead industry as a responsible operator
Evolving our model to strengthen competitiveness and are expected to deliver first-quartile Scope 1 and 2 emissions intensity
performance by 2030 for each asset class when benchmarked against other
operators based upon available data.2
2030 Upstream GHG intensity3
By asset class and benchmarking quartile (Q)

Heavy oil

LNG

Oil and flowing gas

Operated GHG Intensity (T CO₂e/100T)

Expected ExxonMobil performance

Realizing full set of corporate competitive advantages.

| 2024 Advancing Climate Solutions

Unconventional operations
We have set a goal to be net zero in Scope 1 and 2 greenhouse gas emissions by 2030 for our Permian Basin unconventional operated assets. The
enhancements in our unconventional operations include electrification, improving processes, and using electricity from renewables and other lower-emission
sources. In 2022, we eliminated routine flaring in our Permian Basin operated assets in line with the World Bank’s Zero Routine Flaring Initiative.4 Further, we
achieved the top certification for methane emissions management at our Poker Lake, New Mexico, facilities from independent validator MiQ.

Liquefied natural gas (LNG)

ExxonMobil is progressing development of approximately 13 million metric tons per year of high-efficiency liquefaction capacity to meet expected global
demand growth for LNG. This includes diverse projects in the United States, Papua New Guinea, Mozambique, and Qatar. ExxonMobil operated assets are
expected to be among industry’s lowest in greenhouse gas intensity.5

Deepwater
ExxonMobil’s deepwater oil and gas developments are being designed to support our 2030 greenhouse gas emission-reduction plans.
Prosperity joins the Liza Unity as two of the world’s first FPSOs to be awarded the SUSTAIN-1 notation by the American Bureau of Shipping in recognition of the
sustainability of its design, documentation and operational procedures.

| 2024 Advancing Climate Solutions

Product Solutions Energy products
Our Product Solutions business plays a critical role in providing products that Demand for conventional fuels is expected to peak this decade and then
are needed for modern life. Our customers want high-value products with begin to decline, while demand for energy-dense, lower-emission fuels is
lower life-cycle greenhouse gas emissions, which requires product innovation expected to grow rapidly, driven by hard-to-decarbonize transportation
and emissions intensity reductions in our manufacturing processes. sectors such as aviation, marine, and heavy-duty trucking.

Our refining and chemicals businesses each operate assets that are among Around 85% of our manufacturing capacity is co-located in large, integrated
the lowest in industry for greenhouse gas intensity.6 Through 2030, we expect sites that have the flexibility to shift product yield to best meet society’s
to more than offset emissions from new operated facilities needed to meet evolving needs. As demand for conventional road transport fuels declines,
growing demand. Our emission-reduction plans consider fuel switching to select assets can be repurposed to manufacture high-value products
hydrogen; carbon capture and storage projects in Houston, Rotterdam, Fife, including chemicals, lubricants, and lower-emission fuels.
and Antwerp; renewable power purchase agreements; energy efficiency
We continue to improve our portfolio, focusing investments on those major
projects; and conversions of select refineries to terminals.
assets in locations with sound comprehensive carbon policy. Our investments
in North America, China, and Singapore will help meet the growing demand
Global demand growth7 for products with lower life-cycle emissions, and the flexibility of our sites will
allow us to change as society’s needs evolve.
Indexed versus 2017, %
Chemical products
Global chemical demand is expected to grow faster than the global
economy,8 driven by demand for products like cell phones and medical
supplies, as well as products necessary to preserve food and improve hygiene.
Demand for performance chemicals, including our performance polyethylene
and polypropylene, is expected to remain strong and resilient through
the energy transition. These products support customers’ efficiency and
greenhouse gas emission-reduction needs. To further support our customers,
we continue to grow the supply of performance chemicals through large,
competitively advantaged investments such as:
• The Gulf Coast Growth Venture, which started up at the end of 2021,
ahead of schedule and under budget. The operation includes a
1.8 million-metric-ton-per-year ethane steam cracker, two polyethylene
units capable of producing up to 1.3 million metric tons per year, and a
monoethylene glycol unit with a capacity of 1.1 million metric tons per
year.
• The Baton Rouge, Louisiana, performance polypropylene project, which
started up in fourth quarter 2022, expanded our production capacity
along the Gulf Coast by 450,000 metric tons per year.
• The Baytown, Texas, chemical expansion, started up in 2023, will have
the capacity to produce about 400,000 metric tons of VistamaxxTM
polymers per year and about 350,000 metric tons of ElevexxTM linear
alpha olefins per year.
• The chemical complex in Guangdong province, China, which is
currently under construction, includes performance polyethylene lines,
differentiated performance polypropylene lines, and a flexible feed steam
cracker with a capacity of about 1.6 million metric tons per year.
| 2024 Advancing Climate Solutions
Key plan activities to grow high-value products9

Major expansions Advanced recycling Other

Performance chemicals – Guangdong, China Baton Rouge, Louisiana Antwerp, Belgium U.S. Gulf Coast refinery reconfigurations
Lubricants and chemicals – Singapore Baytown, Texas Gravenchon, France China lubricants expansion
Beaumont, Texas Rotterdam, Netherlands India lubricant manufacturing plant
Biofuels
Joliet, Illinois Singapore
Renewable diesel – Strathcona, Canada Sarnia, Canada
Bio co-processing – Sarnia & Nanticoke, Canada

| 2024 Advancing Climate Solutions

Specialty products
Demand for lubricants is expected to remain strong and grow in the industrial, aviation, and marine sectors. Our Singapore Resid Upgrade Project will upgrade
bottom-of-the-barrel products into higher-value lubricant basestocks and cleaner fuels. This investment will position us to better meet demand growth in Asia,
while displacing higher carbon-intensity products in the marketplace.

Helping customers reduce their emissions

Our competitive advantages of scale, integration, and proprietary technology provide customers with products that improve efficiency, avoid greenhouse gas
emissions associated with alternative products, and serve a range of applications, including health and safety, packaging, transportation, and industrial.

Innovative solutions to improve modern life

• Plastic packaging has 54% lower life-cycle greenhouse gas emissions versus alternatives.10

• ExceedTM XP enables up to 30% thinner plastic packaging versus conventional plastics for equivalent performance.11

• Certified circular polymers12 offer equivalent performance of virgin plastics.

Total vehicle product solutions improve transportation efficiency

• Plastics enable lighter vehicles and 6%-8% fuel efficiency improvement for every 10% reduction in vehicle weight.13

• Butyl rubber improves air retention in tires, which can increase electric vehicle range by up to 7%.14

• Mobil 1 ESP X2 0W-20 engine oil helps provide up to 4% fuel economy improvement.15

• Renewable diesel can reduce carbon emissions by up to 70% compared to conventional diesel.16

• Marine biofuel can reduce carbon emissions by up to 30% compared to conventional marine fuel.17

Reliable solutions for industrial efficiency

• Mobil DTE 10 Excel Series provides up to 6% improvement in hydraulic pump efficiency.18
• Mobil SHCTM 600 Series provides up to 3.6% energy efficiency gain.19
• Mobil SHCTM Gear WT helps reduce oil consumption and maintenance costs through extended oil life and drain intervals.20

| 2024 Advancing Climate Solutions

Footnotes
1. ExxonMobil operated facilities; excludes startup phase of major new facilities. Projected emission intensity includes Scope 1 and 2 emissions of ExxonMobil operated assets as compared to available benchmark. Reduction estimates
provided herein have a high degree of uncertainty, and are subject to change based on potential future conditions. 2030 first quartile projection based on comparison of available peer performance data, publicly available announcements,
third-party sources (Rystad for oil and flowing gas, COSIA for heavy oil, Phillip Townsend and Associates Inc. for LNG), and ExxonMobil analysis.
2. Ibid.
3. Ibid.
4. References to routine flaring herein are consistent with the World Bank’s Zero Routine Flaring Initiative/Global Gas Flaring Reduction Partnership’s (GGFRP) principle of routine flaring and excludes safety and non-routine flaring.
5. First quartile operated performance based on Phillip Townsend and Associates Inc. industry benchmarking analysis for operating year 2021.
6. Based on Scope 1 and 2 emissions of ExxonMobil operated assets. Refining performance results based on ExxonMobil analysis of 2020 Solomon Associates’ proprietary Carbon Emissions Index; Chemicals performance results based on
ExxonMobil analysis of key competitors’ publicly available information, annual data (2016-2022).
7. Total demand through 2030 – ExxonMobil 2023 Global Outlook. Chemicals based on ExxonMobil 2023 Global Outlook for Energy chemical feedstock projected demand excluding direct ethane from Upstream operations.
8. Global economy - ExxonMobil's 2023 Global Outlook; Chemicals growth - IHS Markit Report, Global (Polyethylene, Polypropylene, and Paraxylene), 2023 edition: Fall 2023 update.
9. May not reflect final investment decisions made by the company. Individual opportunities may advance based on a number of factors, including availability of supportive policy, technology for cost-effective abatement, and alignment with
our partners and other stakeholders. The company may refer to these opportunities as projects in external disclosures at various stages throughout their progression.
10. April 2018 report of Franklin Associates on Life Cycle Impacts of Plastic Packaging Compared to Substitutes (April 2018 Franklin Associates Report); U.S. packaging market; alternatives include steel, aluminum, glass, paper-based
packaging, fiber-based textiles, and wood (Table 4-14). Source: https://www.americanchemistry.com/better-policy-regulation/plastics/resources/life-cycle-impacts-of-plastic-packaging-compared-to-substitutes-in-the-united-states-and-canada-
theoretical-substitution-analysis.
11. Based on performance of specific ExxonMobil Exceed™ XP grades versus conventional polyethylene in flexible packaging applications.
12. Certifications through the International Sustainability and Carbon Certification (ISCC) PLUS process. For more information, please visit https://www.exxonmobilchemical.com/en/exxonmobil-chemical/sustainability/advanced-recycling-
technology/mass-balance-attribution.
13. Department of Energy statements at https://www.energy.gov/eere/vehicles/lightweight-materials-cars-and-trucks.
14. Based on ExxonMobil analysis: https://www.exxonmobilchemical.com/en/resources/library/library-detail/91254/properly_inflated_tires_affect_energy_consumption_en.
15. Based on ExxonMobil analysis when compared to conventional mineral oils: https://www.mobil.com/en-be/passenger-vehicle-lube/pds/eu-xx-mobil-1-esp-x2-0w-20.
16. Based on ExxonMobil analysis using Argonne National Labs’ GREET2022 model and published fuel carbon intensity from California LCFS regulations. Argonne National Laboratory GREET model: https://greet.anl.gov/, California Air
Resources Board Low Carbon Fuel Standard Regulation: https://ww2.arb.ca.gov/our-work/programs/low-carbon-fuel-standard/lcfs-regulation.
17. Based on ExxonMobil analysis using Argonne National Labs’ GREET2022 model versus conventional fuel oil. Argonne National Laboratory GREET model: https://greet.anl.gov/ Performance dependent on blend rates and bio components
used.
18. Based on ExxonMobil analysis; performance profile at https://www.mobil.com/en-us/industrial/pds/gl-xx-mobil-dte-10-excel-series.
19. Based on ExxonMobil analysis; performance profile at https://www.mobil.com/en-us/industrial/pds/gl-xx-mobil-shc-600-series.
20. Based on ExxonMobil analysis; performance profile at https://www.mobil.com/en-us/industrial/pds/gl-xx-mobilshc-gear-320-wt.

| 2024 Advancing Climate Solutions

Emission-reduction plans and progress
Progress toward net zero by 2050
With advancements in technology and the support of clear and consistent government policies, we aim to achieve net-zero Scope 1 and 2 greenhouse gas
emissions in our operated assets by 2050.
Our net-zero ambition is backed by a comprehensive approach centered on detailed emission-reduction roadmaps. We completed these roadmaps in 2022 and
continue to update them to reflect technology and policy, and to account for the many potential pathways and the pace of the energy transition.
We are using this approach in our Permian Basin unconventional operations, where we are on track to achieve our industry-leading plans to reach net-zero
Scope 1 and 2 emissions by 2030.
Our progress on the roadmap includes:

• Electrifying operations: Our first 23 electrical compressors are online and we deployed an electric frac unit in 2023.

• Lower-carbon power: In 2023, we signed long-term agreements to enable over 475 megawatts of wind capacity for our assets in Texas and New Mexico.
We also conducted behind-the-meter solar evaluation.

• Upgrading equipment: We have replaced all the pneumatic devices in our Permian unconventional operations, more than 6,000 in total.

• Deploying technology: We further expanded our methane detection and mitigation technology, eliminated routine flaring, and upgraded equipment.

| 2024 Advancing Climate Solutions

 Potential GHG abatement options for ExxonMobil Permian unconventional operated assets supporting 2030 net-zero plan1

2030 greenhouse gas emission-reduction plans2 Our actions to reduce emissions through 2030 include:
We are working to continuously improve our • Achieving net-zero Scope 1 and 2 greenhouse gas emissions in our Permian Basin unconventional
performance, methods to detect and address operated assets.
methane emissions, and our measurement of
emissions, with the aim to lower our emissions in • Deploying carbon capture and storage, hydrogen, and lower-emission fuels in our operations.
support of our greenhouse gas emissions plans. • Further reducing methane emissions at operated assets in alignment with the Global Methane Pledge
and the Aiming for Zero Methane Emissions Initiative developed by the Oil and Gas Climate Initiative.
Our 2030 plans are expected to result in a 20%-
To do this, we’re deploying best practices and advanced technologies, including satellite, aerial, and
30% reduction in corporate-wide greenhouse
ground-sensor networks.
gas intensity, including reductions of 40%-50% in
upstream intensity, 70%-80% in corporate-wide • Further reducing flaring in upstream operations to meet the World Bank Zero Routine Flaring
methane intensity and 60%-70% in corporate- Initiative, which mitigates methane and greenhouse gas emissions.
wide flaring intensity. These plans apply to • Integrating energy sources with lower emissions into our facilities, for example through long-term
Scope 1 and 2 greenhouse gas emissions from our renewable power purchase agreements and equipment electrification.
operated assets versus 2016 levels.
• Improving energy efficiency in our businesses by adapting operational and maintenance processes,
such as improving furnace performance.
• Substituting blue hydrogen for natural gas to reduce emissions from our manufacturing operations.
• Deploying innovative solutions to further reduce greenhouse gas emissions with future advancements
in technology and supportive policies.
| 2024 Advancing Climate Solutions
Progress toward 2030 greenhouse gas emission-reduction plans3,4

Corporate-wide operated GHG emissions intensity Corporate-wide operated methane emissions intensity
(T CO2e/100 T) (T CH4/100 T)
2022 year-end actual 2022 year-end actual
0.08
30
0.06

20 2030 plan
0.04

10 0.02
2030 plan

0 0.00
2016 2022 2016 2022
Upstream operated GHG emissions intensity Corporate-wide operated hydrocarbon flaring intensity
(T CO2e/100 T) (m3/T)
2022 year-end actual 2022 year-end actual

30 NDCs
15

20
10
2030 plan

10 5
2030 plan

0 0
2016 2022 2016 2022

Approach to greenhouse gas emissions reductions in business planning

We incorporate actions needed to advance our 2030 emission-reduction objectives into our medium-term business plans, which we update annually. The
reference case for planning beyond 2030, including impairment assessments and future planned development activities, is based on our Global Outlook.
The Outlook considers the existing global policy environment, announced policy changes, technology advances, consumer preferences and the historical
precedents for each of these areas. It does not attempt to project the degree of future policy, technology advancement, or deployment necessary for the
world or ExxonMobil to meet net zero by 2050. As additional policies are implemented and technology advances beyond our estimates, we incorporate those
changes into the Outlook and update our business plans accordingly as part of our annual planning cycle.

| 2024 Advancing Climate Solutions

Potential GHG abatement options for ExxonMobil operated assets supporting 2030 GHG emission-reduction plans5
Roadmap
T CO2e/100 T

2016 2022 Energy Flare & Operations/ Electrification/ CCS, hydrogen, 2030
intensity intensity efficiency methane reconfigurations PPAs/RECs/ and/or future intensity
minimization high -quality advancements
offsets

Abatement curve

CCS, hydrogen, and/or

future advancements
cost
AbatementCost
Abatement

Operations/
Electrification
reconfigurations

Methane
minimization
Flare
Electrification/
minimization
PPAs/RECs/
high-quality Energy
offsets efficiency

CO2e mitigation
Higher-cost options reflects the need for additional policy and continued advocacy.

| 2024 Advancing Climate Solutions

Footnotes
1. These charts illustrate potential greenhouse gas abatement options for Scope 1 and 2 greenhouse gas emissions. These options are not all-inclusive and are subject to change as a result of a number of factors, including abatement
reduction magnitude, implementation timing, abatement cost, portfolio changes, policy developments, technology advancements, and as annual company plans are updated. Includes energy attribute certificates, such as renewable
energy certificates (RECs) and guarantees of origin (GOOs).
2. ExxonMobil’s 2030 GHG emission reduction plans, https://corporate.exxonmobil.com/news/news-releases/2021/1201_exxonmobil-announces-plans-to-2027-doubling-earnings-and-cash-flow-potential-reducing-emissions.
3. Ibid.
4. Based on Scope 1 and 2 emissions of ExxonMobil operated assets through 2022 (versus 2016). ExxonMobil’s reported emissions, reductions, and avoidance performance data are based on a combination of measured and estimated
emissions data using reasonable efforts and collection methods. Calculations are based on industry standards and best practices, including guidance from the American Petroleum Institute (API) and Ipieca. There is uncertainty associated
with the emissions, reductions, and avoidance performance data due to variation in the processes and operations, the availability of sufficient data, quality of those data, and methodology used for measurement and estimation.
Performance data may include rounding. Changes to the performance data may be reported as part of the company’s annual publications as new or updated data and/or emission methodologies become available. We are working to
continuously improve our performance and methods to detect, measure and address greenhouse gas emissions. ExxonMobil works with industry, including API and Ipieca, to improve emission factors and methodologies, including
measurements, and estimates.
5. These charts illustrate potential greenhouse gas abatement options for Scope 1 and 2 greenhouse gas emissions. These options are not all-inclusive and are subject to change as a result of a number of factors, including abatement
reduction magnitude, implementation timing, abatement cost, portfolio changes, policy developments, technology advancements, and as annual company plans are updated. Includes energy attribute certificates, such as renewable
energy certificates (RECs) and guarantees of origin (GOOs).

| 2024 Advancing Climate Solutions

Resiliency
Testing resiliency under the IEA NZE scenario1,2
We have used the assumptions in the IEA NZE scenario to test the resiliency of our current portfolio even though the IEA acknowledges that society is not on the
IEA NZE pathway.

Our testing methodology uses IEA’s assumptions

We modeled a hypothetical business and investment portfolio based on the IEA NZE scenario and used a respected third party to conduct an independent
audit and confirm the integrity of our model. The analysis included existing operations and future opportunities across our businesses in oil, natural gas, fuels,
lubricants, chemicals, lower-emission fuels, hydrogen, and carbon capture and storage. We used IEA NZE assumptions relevant to these business areas to
inform demand and pricing in our model:

• Oil prices decline to $24 per barrel by 2050; natural gas prices decline to $2-$4.60 per million British thermal units depending on region (both in real terms,
2019 USD).

• Oil and natural gas demand declines from 53% of total primary energy in 2020 to 19% by 2050.

• Chemicals demand increases by 30% from 2020 to 2050, with 80% of production leveraging carbon capture and storage or hydrogen technology
integration.

• Carbon prices increase to $250 per metric ton in advanced economies, $200 per metric ton in China, Russia, Brazil, and South Africa, and $55 per metric ton
in other emerging markets and developing economies (real terms, 2019 USD).

• Carbon capture and storage volumes expand rapidly from 40 million metric tons in 2020 to 7.6 billion metric tons in 2050, supported by a range of measures
to increase investment.

• Lower-emission fuels, in which the IEA includes liquid biofuels, biogas and biomethane, and hydrogen-based fuels, increase from 1% of global final energy
demand in 2020 to 20% in 2050.

• Hydrogen production increases by a factor of six, from 87 million metric tons in 2020 to 528 million metric tons in 2050.

| 2024 Advancing Climate Solutions

We developed additional assumptions consistent with the IEA NZE narrative as needed to estimate the performance of our portfolio. To use the IEA NZE price
assumptions, we assumed that current prices decline to conform to IEA published prices by 2025 and that the path is linear between the price assumptions
that IEA provided by decade thereafter. The IEA NZE scenario did not provide assumed margins for refining and chemical businesses. Therefore, for refining,
we assumed margins decline to the lowest level needed to incentivize production required to meet IEA NZE oil demand. For chemicals, we modeled margins
consistent with history, at a level sufficient to support the investment necessary to meet chemicals demand growth per the IEA NZE; the margins decline over
time, partially offset by inflation.3 For our Low Carbon Solutions business, we used IEA NZE demand assumptions and assumed the business investments attract
reasonable returns based on our historical averages for similar business lines and products. Our modeling assumes that the resulting market position for existing
and new areas as a percentage of demand under IEA NZE is in line with our current market positions in existing businesses. We assumed investment to abate
estimated greenhouse gas emissions from our businesses by 2050. Annual inflation was set to 2.5%. We also assumed total capital expenditures through 2050
starting with our 2020 trailing five-year average and moving forward on a real basis, which is sufficient investment to maintain market share. On this basis, the
results further support the growth in cash flow from our Low Carbon Solutions business under the IEA NZE scenario. Our competitors and peers have different
portfolios, strategies, markets, and regulatory realities that lend themselves to different approaches and may lead to different results that are not necessarily
comparable across companies, especially for those who anticipate a production decrease or an exit from the oil and natural gas business as part of their plans.

Outcomes of our testing Operating cash flow modeled under IEA NZE 2050 scenario4
Trailing 5-year averages (nominal $)
The chart illustrates potential changes to our business portfolio through
2050 from the modeling. It demonstrates that, under the IEA NZE
assumptions, we have flexibility to continue to grow cash flows over
time through reduced investments in oil and natural gas and increased
investments in value-accretive projects in chemicals, carbon capture and
storage, lower-emission fuels, and hydrogen. We disclose estimated
operating cash flows over time, broken out by traditional oil and gas,
chemicals, and Low Carbon Solutions to address enterprise resiliency
questions. We believe this is an industry-leading disclosure because
it provides a clearer view of the resiliency and enterprise value of our
portfolio, expertise, and opportunities than hypothetical noncash
accounting measures dependent on asset-specific assumptions not
provided by the IEA NZE.
Capital expenditures modeled under IEA NZE 2050 scenario5
Trailing 5-year averages

100%

75%

50%

25%

0%
2020 actual 2030 2040 2050

| 2024 Advancing Climate Solutions

Our modeling illustrates a number of considerations for our business in further accelerate lowering greenhouse gas emissions intensity, with less
an IEA NZE scenario. Through 2030, the upstream portfolio would further advantaged sites potentially closed or converted to terminals.
focus on resources with competitive cost while accelerating options to
improve greenhouse gas emissions intensity. Assets with shorter production Under IEA NZE, significant growth potential exists in the Low Carbon
cycles, such as unconventional developments in the Permian, and a lower Solutions portfolio in lower-emission fuels, carbon capture and storage,
cost of supply, like deepwater production in Guyana, would continue to and hydrogen. Our core capabilities and advantages, including subsurface
attract capital and generate competitive returns. expertise, scaling major projects, existing assets including infrastructure,
and our people, would continue to position us to effectively compete.
The energy transition creates opportunities for our existing assets, which Throughout the modeled period, the increasing IEA NZE carbon price
could provide additional business optionality. If the IEA NZE scenario’s long- would support accelerating attractive investments that would increase cash
term decline in oil and natural gas demand and pricing were to materialize, flow in Low Carbon Solutions, offsetting reduced investment in traditional
we would respond by ceasing oil and gas exploration in new basins along oil, natural gas, and fuels refining. Through 2030, we would focus on scaling
with reduced spending on new developments. Longer-term, through lower-emission fuels options to meet the expected growing demand.
2050 in this scenario, this potentially reduced investment would result in
lower overall production as natural depletion outpaces investment in new We would also pursue investments like the Baytown blue hydrogen project,
volumes, with a continued portfolio focus on cost-efficient assets with low acquisition of geologic storage to sequester CO₂, and participation in
greenhouse gas emissions intensity. Existing oil and natural gas production new potential industrial clusters that would advance new and existing
assets would be optimized and operated as long as economically justified, infrastructure opportunities and position us as a partner of choice. Longer-
consistent with IEA NZE assumptions, which project that global production term through 2050, the carbon price and demand for decarbonization
of approximately 24 million barrels of oil and 170 billion cubic feet of natural options would continue to grow rapidly in the scenario, leading to a
gas per day would still be needed to meet demand in 2050. significant shift in our capital spend to further scale carbon capture and
storage and hydrogen.
In our Product Solutions portfolio, as production of traditional refined
products declines through 2030 under the IEA NZE scenario, manufacturing
sites would be reconfigured to shift production to meet the demand for
non-combusted products like lubricants, basestocks, and chemicals, as well
as to meet growth in lower-emission fuels and provide additional optionality
for these assets in the energy transition. Current examples include
investments and partnerships to increase renewable diesel production and
transport, such as at our Strathcona refinery in Canada or Slagen facility in
Norway.

Demand growth for chemical products, many of which generate lower

life-cycle emissions relative to available alternatives, would be supported
by value-accretive investments in our chemicals business. Examples include
expansions currently underway in the U.S. Gulf Coast and Singapore, and
at our China chemical complex. Longer-term through 2050, we would
continue to optimize and potentially expand our integrated sites with
flexibility to produce lower-emission fuels and chemicals while reducing
their operational emissions. Additional integration with carbon capture
and storage and/or fuel switching with hydrogen technology would

| 2024 Advancing Climate Solutions

Third-party independent audit of ExxonMobil’s modeling of IEA Considering IEA NZE by 2050 scenario updates
NZE The IEA NZE by 2050 scenario is back-cast, meaning that the outcome
of net-zero CO₂ emissions in 2050 is fixed, with the scenario working
After an extensive search, we enlisted an independent third party, Wood
backward to present one view of supply, demand, geopolitical, technology
Mackenzie Inc., to audit our portfolio model. The objectives of the audit
and market assumptions to achieve this set objective. While hypothetical,
were to confirm the integrity of the calculations and overall model
this type of rationale may be of use to consider the significant challenges
functionality and to validate that the model accurately reflected the IEA
present in an aggressive scenario. We directly leveraged the assumptions
NZE’s assumption inputs, ensuring the output is a reasonable expression of
made by the IEA in their NZE scenario to assess our business and
the portfolio mix as defined by the model inputs.
investment portfolio, with the outcome demonstrating our resiliency. Since
The Wood Mackenzie audit included testing and confirming the integrity the initial release in 2021, the IEA has continued to make updates to their
of the ExxonMobil Portfolio Model, including evaluation of each business NZE scenario.8
under the IEA NZE. They also confirmed that the IEA NZE assumptions are
The IEA also continues to share updates on energy-related CO₂ emission
accurately reflected in the portfolio model. Specifically, Wood Mackenzie
levels9 as well as the critical technologies10 and clean energy investments11
validated the following:
assumed necessary. These publications highlight that multiple key areas
• The IEA Net Zero assumptions are accurately reflected in the model. are not progressing as assumed in the NZE scenario. With these key areas
lagging, updates to the back-cast NZE scenario must address an increased
• Model calculations are correct. total amount of emissions reduction in a shorter time period to achieve the
set 2050 net-zero objective.
• There are no data translation errors.
Fundamentally, an update that increases improvements needed while
• The output is a reasonable representation of portfolio mix as defined by shortening the time allowed means that each iteration of the NZE's
model inputs. methodology leads to assumptions that increase the importance of lower-
carbon solutions. These NZE scenario updates have not changed the
As a global research and consultancy business with 50 years of experience,
outcome of our assessment, which highlights resiliency through investment
Wood Mackenzie partners with organizations to provide quality data,
flexibility across options that are both needed and consistent with our
analytics, and insights used to power the natural resources industry.6 To
core capabilities, including lower emissions-intensity oil and natural gas,
view the 2022 Wood Mackenzie independent audit statement, click here.7
chemicals, carbon capture and storage, lower-emission fuels, and hydrogen.

The differences that remain apparent between current progress in lowering

emissions and the aspirational assumptions outlined by the NZE scenario
updates point to further need for society to advance supportive policies,
effective carbon markets, and technology solutions to enable progress.
We are doing our part, building an entire Low Carbon Solutions business
dedicated to reducing emissions – both our own and others – and spending
billions of dollars on solutions that have a real, sustainable impact.

| 2024 Advancing Climate Solutions

Assessing potential impacts
The following is intended to address the potential impacts through 2050 to our proved reserves, resources, evaluation of asset impairments, and other
measures, considering the discussed scenarios’ ranges of oil and natural gas demand.12

In assessing various aspects of resiliency, we believe taking a portfolio approach is the most appropriate way for ExxonMobil to provide transparency in our
analysis of the potential impacts of any energy transition scenario, including the IEA NZE. Additionally, as an integrated company with assets around the
world, we have seen that economic events and trends may have a negative effect on one asset and an offsetting positive effect on others, with a minimal net
effect on the full portfolio. When individual subsurface and energy system assets are analyzed in isolation from the full portfolio, the analysis is vulnerable to
misinterpretation of the interplay among assets in the market and the optionality that assets may have in a specific region in the energy transition. This may
provide a misleading picture of our resiliency and enterprise value. While one group of assets may perform below expectations for a period of time, other assets
may perform above expectations – such is the nature of this cyclical industry. Numerous examples have occurred over time, with Russia’s invasion of Ukraine
providing a recent example of the value of our diversified portfolio. While we experienced a loss of value from the expropriation of our Russian assets, the
international sanctions contributed to a rise in global commodity prices, increasing the value of many of our other Upstream assets. We believe an analysis that
fails to account for these details could both misrepresent the value of the portfolio and miss important macro factors such as energy reliability and security. We
do not believe this approach provides meaningful disclosure to investors.

We believe the energy transition is likely to unfold at an uncertain pace with variation in technology and policy by region. The individual assets in our portfolio
respond differently to economic signals, technology evolution, commodity prices, regional differences, government policies, and many other variables. Even
where global benchmark prices are given, local prices, including differentials, are influenced by external factors that cannot be reliably predicted. Third-party
scenarios offer some assumptions related to these variables; however, determining impacts by individual asset requires additional forecasts, projections, and cost
estimates that cannot be reasonably predicted. Publicly providing individual asset modeling for remote scenarios risks conveying a false level of precision.

To further support our portfolio approach, we believe using the IEA NZE in a hypothetical individual asset impairment analysis is inconsistent with the principles
outlined under U.S. GAAP, which specifies that impairment analyses should be based on assumptions that are “reasonable in relation to” our planning basis.
Our planning basis is our Global Outlook, which is a projection of supply and demand through 2050. The assumptions in the IEA NZE significantly vary from our
Outlook, and the IEA has acknowledged that its NZE is an extremely aggressive scenario, and that society is not currently on this pathway. Providing detailed
asset-specific public disclosure regarding remaining useful lives, retirement costs, and potential proved reserves changes in an IEA NZE scenario could imply a
higher degree of certainty or accuracy than exists. In addition, as the energy transition progresses, disclosing this type of detailed asset-level information could
provide a competitively sensitive roadmap of how we might make adjustments in our portfolio. For these reasons, we do not provide hypothetical, individual
asset accounting analysis using the IEA NZE. We believe looking at the evolution of our portfolio operating cash flows, which reflect how investment decisions
may change under the IEA NZE, provides a better demonstration of our resiliency and enterprise value with less potential to confuse our stakeholders.

Use of sensitivity analysis

Sensitivity analysis provides greater perspective on how variations to our Outlook assumptions could affect projected energy supply and demand.
Analyzing these sensitivities involves evaluating possible technology advancements and their potential impact on energy supply and demand. This
results in a range of potential low- to high-demand outcomes for certain energy sources. The projections yielded by sensitivity analysis do not
represent our viewpoint or the likelihood of these alternatives, but can provide context.

| 2024 Advancing Climate Solutions

Proved reserves
Proved reserves are assessed each year and reported in our annual report scenarios like the IEA NZE, higher-cost assets could become disadvantaged
on Form 10-K in accordance with rules of the U.S. Securities and Exchange without active portfolio management.
Commission. Based on 2022 production schedules, a substantial majority of In light of the multiple and dynamic factors that influence governments’ diverse
our year-end 2022 proved reserves are expected to have been produced by approaches to regulating resources and industry’s decisions to commercialize
2050. For the remaining year-end 2022 proved reserves that are projected to undeveloped resources, it is not possible to identify which specific assets will
be produced beyond 2050, the reserves are generally associated with assets ultimately be developed. For example, regional policies that constrain supply
where the majority of development costs are incurred before 2050. While these in one area could enhance returns in others. Alternatively, geopolitical conflict
proved reserves may be subject to more stringent climate-related policies in affecting resources in one region could advantage resources in another, making
the future, technology advancements and targeted investments could mitigate diverse long-lived assets a hedge against instability. Ultimately, we are confident
production-related greenhouse gas emissions and associated costs. In addition, in our ability to apply high-impact technologies to position our portfolio to
these mature assets generally have a lower risk profile given the experience and compete successfully in a broad range of scenarios.
technical knowledge accumulated over many decades of production.
Significant investment still needed under Likely Below 2˚C and IEA
Resources
NZE scenarios13
We maintain a large and diverse portfolio of undeveloped resources that
provide flexibility to develop new supplies to meet future demand. We work In the IPCC Likely Below 2°C scenarios, average global oil demand is projected
to enhance the quality of this resource base through successful exploration, to decline from approximately 90 million barrels per day in 2021 to about
application of new technology, acquisitions, divestments, and ongoing 65 million in 2050. The IEA NZE scenario projects about 24 million barrels
development planning and appraisal activities. per day of demand in 2050. Without future investment, world oil production
would be expected to drop to about 12 million barrels per day due to natural
The underlying economics of commercializing resources depend on a number field decline. In the IEA NZE scenario, additional investment of approximately
of factors that are assessed annually. Decisions can range from developing the $8 trillion through 2050 will be required in oil and natural gas to meet the
resource (which eventually moves to proved reserves), monetizing the resource world’s energy demand.14 Even under IEA NZE, new discoveries will be
by selling it to others, or exiting the resource. All investments are tested over needed to support energy security and reliable supply in the face of geopolitical
a wide range of commodity price assumptions and market conditions. In uncertainty.

| 2024 Advancing Climate Solutions

 Global Global

The supply gap to 2050

Significant investment would be needed to meet even the rapidly declining demand for oil and gas envisioned in the IEA’s Net Zero Emissions by 2050 scenario.
In 2050, IEA STEPS projects a price of $83 per barrel and a U.S. natural gas price of $4.3 per million British thermal units (prices in 2022 U.S. dollars).
Our Outlook estimates energy-related CO₂ emissions in 2050 to have dropped by almost 25% versus 2021 to 25 billion metric tons per year – approximately 5%
lower than IEA STEPS. Our Outlook projects higher future demand for oil and natural gas, partially based on a larger share of global economic growth coming
from emerging economies, as they improve access to energy vital for human development. The Outlook also reflects higher growth of carbon capture and
storage and low-carbon hydrogen based on our insights into these technologies, which are critical solutions for net-zero pathways.

| 2024 Advancing Climate Solutions

Third-party price projections versus IEA NZE price15

The company’s projections for prices are proprietary. Our Global Outlook forms the basis of our business planning and is used for commercial decisions and
economic evaluations. Our near-term prices are informed by market conditions. For mid- to longer-term, our prices are in the range of third-party projections
published by reputable organizations with significant industry expertise. The pricing is also well within historical bands.16

| 2024 Advancing Climate Solutions

Footnotes 12. For the purposes of this report, “proved reserves” means estimated year-end 2022 proved oil and gas
reserves for consolidated subsidiaries and equity companies which was reported in the Corporation’s 2022
1. The Use of Scenario Analysis in Disclosure of Climate-related Risks and Opportunities – TCFD Knowledge Annual Report on Form 10-K. Proved oil and gas reserves are determined in accordance with Securities and
https://www.tcfdhub.org/scenario-analysis/. Exchange Commission (SEC) requirements. Proved reserves are those quantities of oil and gas which, by
analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically
2. The statements and figures contained in this section are hypothetical in nature, do not constitute a forecast producible under existing economic and operating conditions and government regulations. Proved reserves
of future company performance and are based on assumptions from International Energy Agency (2021), Net are determined using the average of first-of-month oil and natural gas prices during the reporting year. For
Zero by 2050, IEA, Paris. the purposes of this disclosure, resources are total remaining estimated quantities of discovered oil and gas
3. Forward price and margin assumptions used in IEA NZE modeling; historical values provided for context. that are expected to be ultimately recoverable. The resource base includes proved reserves and quantities of
oil and gas that are not yet classified as proved reserves.
13. IEA World Energy Outlook 2023, ExxonMobil analysis, ExxonMobil 2023 Global Outlook, IPCC Sixth
Assessment Report, Likely Below 2°C scenarios refers to Category C3.
14. ExxonMobil analysis based on IEA World Energy Outlook 2023, Figure 3.22.
15. IEA NZE by 2050 (2021), Third-party oil price projection range includes:

a. FACTS Global Energy Group – Forecast of Crude Oil Prices and Differentials. (October 2023); Global
Oil Market Outlook (July 2023).
b. Wood Mackenzie – Macro Oils Investment Horizon Outlook (October 2023).
c. Rystad Energy – UCube (October 2023).
d. S&P Global Commodity Insights – Energy Price Portal (October 2023). North American Crude Oil
Markets Short-Term Outlook (October 2023). Global Fundamentals Crude Oil Markets Price Long-
Term Outlook: 3Q2023 (September 2023).
e. U.S. Energy Information Administration – Short-Term Energy Outlook (October 2023). Annual Energy
Outlook (March 2023).
Third-party gas price projection range includes:
a. Rystad Energy – UCube (October 2023).
b. Wood Mackenzie – Global Gas Investment Horizon Outlook (October 2023).
c. S&P Global Commody Insights – Energy Price Portal (October 2023). North American Natural Gas
Short-Term Outlook (October 2023). North American Gas Long-Term Outlook (August 2023).
d. U.S. Energy Information Administration – Short-Term Energy Outlook (October 2023). Annual Energy
Outlook (March 2023).
16. For example, from 2010 to 2022, annual Brent crude prices ranged from $112 a barrel to $42 a barrel. For the
same period, annual Henry Hub natural gas price ranged between $6.45/mmbtu and $2.03/mmbtu. Source:
4. ExxonMobil analysis, IEA NZE by 2050 (2021). Supplemental information for non-GAAP and other measures. U.S. EIA Brent and Henry Hub Annual Spot Price; May 3, 2023 (nominal dollars). U.S. EIA Brent and Henry
This chart mentions modeled operating cash flow in comparing different businesses over time in a future Hub Annual Spot Price; May 3, 2023 (nominal dollars).
scenario. Historic operating cash flow is defined as net income, plus depreciation, depletion and amortization
for consolidated and equity companies, plus noncash adjustments related to asset retirement obligations
plus proceeds from asset sales. The Company’s long-term portfolio modeling estimates operating cash flow
as revenue or margins less cash expenses, taxes and abandonment expenditures plus proceeds from asset
sales before portfolio capital expenditures. The Company believes this measure can be helpful in assessing
the resiliency of the business to generate cash from different potential future markets. The performance data
presented in the publication and its associated supplement, including on emissions, is not financial data and
is not GAAP data.
5. ExxonMobil analysis, IEA NZE by 2050 (2021).
6. Wood Mackenzie, https://www.woodmac.com/about/our-story/.
7. Note: 2022 opinion letter references page numbers from the 2023 Advancing Climate Solutions Progress
Report.
8. International Energy Agency (2021), Net Zero by 2050, IEA, Paris; IEA NZE scenario per World Energy
Outlook 2022, IEA, Paris; IEA Net Zero Roadmap: A Global Pathway to Keep the 1.5˚C Goal in Reach 2023
Update, IEA, Paris.
9. "Global energy-related CO₂ emissions grew by 0.9% or 321 Mt in 2022, reaching a new high of over 36.8 Gt."
- CO₂ Emissions in 2022 – Analysis - IEA.
10. "Of the over 50 components tracked, in the 2023 edition 3 are evaluated as fully “On track”" (vs. NZE
scenario) - https://www.iea.org/reports/tracking-clean-energy-progress-2023.
11. "Scaling up clean investment is the key task for the sustainable and secure transformation of the energy
sector" - https://www.iea.org/data-and-statistics/charts/historical-investment-in-energy-benchmarked-against-
needs-in-iea-scenarios-in-2030.

| 2024 Advancing Climate Solutions

Risk management Examples of potential risks
Managing long-term risks associated with climate change and the energy
Our risk management approach transition is a key part of managing a broad spectrum of interrelated risks.
Our Enterprise Risk Management Framework provides a comprehensive
and structured approach to identify, prioritize, understand, and manage
ExxonMobil’s most important risks. It is designed to drive consistency across
risk types and support monitoring key risks. For more details on the risks we
consider and manage, refer to Item 1A. Risk Factors in the 10-K.

Our enterprise risk framework includes five elements:

1. A way to organize and aggregate risks.
2. Robust risk identification practices.
3. A prioritization method.
4. Systems and processes to manage risk.
5. Risk governance to support oversight.

Our approach to risk governance is multilayered and includes clearly

defined roles and responsibilities for managing each type of risk. It includes
a definition of the responsibilities of risk owners, functional experts,
and independent verifiers. Each risk type is managed and supported by
organizations that actively execute risk management processes and are
responsible for specifying corporate requirements and processes. Each of
these processes includes the critical elements of leadership, people, risk
identification and management, and continuous improvement. Oversight
responsibilities by the Management Committee and the Board and its
committees are a key part of risk governance. Our Management Committee
consists of our Chief Executive Officer, our Chief Financial Officer, and our
two Senior Vice Presidents.
| 2024 Advancing Climate Solutions
Protection of assets, the community, and the environment
We have extensive experience operating in a wide range of challenging physical environments around the world.
Effective risk management requires the ongoing assessment and mitigation of potential impacts to our people, our assets, the community, and the environments
in which we operate. Before pursuing a new development, we use data and advanced computer modeling to assess the full range of potential environmental,
socioeconomic and health risks associated with potential construction and operations. We also consult with communities through public meetings and other
outreach, and we work with regulators to share information and seek necessary approvals. This process gives us a comprehensive understanding of possible
impacts, which we use to implement measures to avoid, reduce, or remedy environmental, socioeconomic, and health risks or impacts.
When considering physical environmental risks, we evaluate the type and location of facilities and investments. As an example, changes in patterns of waves,
wind, or ice floes can affect offshore facilities. Onshore facilities could be vulnerable to sea level rise, changes in storm surge, flooding, changes in wind and
seismic activity, or geo-technical considerations. We conduct environmental assessments before building and operating facilities to ensure that protective
measures and procedures are in place.

Hebron
The Hebron platform is located off the coast of eastern Canada in
92 meters of water. The platform is a reinforced concrete gravity-based
structure designed to withstand sea ice, icebergs, and meteorological
and oceanographic conditions. Hebron was engineered and wave-
tank tested for storms so extreme they may occur only once every
10,000 years. On Nov. 14, 2018, the Grand Banks saw its largest storm
in 30 years, estimated as a 100-year return period event. Following
temporary shutdown of all Grand Banks platforms, Hebron was up and
running within a week without any major issues.

Our scientists and engineers are industry experts across a variety of disciplines. Through their active participation and leadership in industry groups, they advise
and gather insights to inform and improve industry standards which, in turn, are adopted to enhance our standards and procedures. We follow industry practices
such as the American Society of Civil Engineers’ Climate Resilient Infrastructure: Adaptive Design and Risk Management manual of practice.1
Industry standards, including American Society of Civil Engineers (ASCE 7)2 Minimum Design Loads and Associated Criteria for Buildings and Other Structures,
are also used along with professional experience to cover a range of uncertainties. After construction of a facility, we monitor and manage ongoing facility
integrity through periodic checks of key aspects of the structures.

| 2024 Advancing Climate Solutions

 Gulf Coast Growth Venture
The Gulf Coast Growth Venture, a petrochemical manufacturing facility
near Corpus Christi, Texas, is compliant with both San Patricio County
and national standards (ASCE 7). Stormwater handling is a risk factor
associated with the facility, so the design includes basins to retain excess
stormwater to supplement the capacity of the municipal water system.
The design, construction, and operations of petrochemical facilities are
highly regulated by the Texas Commission on Environmental Quality.
Company representatives held hundreds of outreach meetings with
local organizations, chambers, government agencies, civic groups,
and neighborhoods and have addressed comments and concerns
raised during the permitting process. More information on the Texas
Commission on Environmental Quality permitting process can be found
on its website.3

Once facilities are in operation, we maintain disaster preparedness, response, and business continuity plans. Detailed, well-practiced, and continuously
improved emergency response plans are tailored to each facility to help us prepare for unplanned events, including extreme weather. Periodic emergency drills
are conducted with appropriate government agencies and community coalitions to help heighten readiness and minimize the impacts of an event. Strategic
emergency support groups are established around the world to develop and practice emergency response strategies and assist field responders. Regardless of
the size or complexity of any potential incident, each ExxonMobil facility and business unit has access to readily available trained responders, including regional
response teams, to provide rapid tactical support.

Footnotes
1. American Society of Civil Engineers Climate- Resilient Infrastructure: Adaptive Design and Risk Management, https://doi.org/10.1061/9780784415191.
2. American Society of Civil Engineers (ASCE 7) Minimum Design Loads and Associated Criteria for Buildings and Other Structures, https://doi.org/10.1061/9780784415788.
3. Texas Commission on Environmental Quality permits and registration, https://www.tceq.texas.gov/permitting/business_permitting.html.

| 2024 Advancing Climate Solutions

Research and development
Our unique and sustained approach to R&D
We take a fundamental approach to our research, which seeks to identify and progress new technologies that, once proven, could be deployed at a commercial
scale by market participants.

As we work to advance carbon capture and storage, hydrogen and lower-emission fuels opportunities, we are also investing in research and development aimed
at next-generation, lower-emission solutions. We determine which research projects to advance based on factors including advantage versus alternatives, the
ability to scale, alignment with core capabilities and key partners, and the probability of commercial success.

Thousands of scientists and engineers, including more than 1,500 Ph.D.s, work at ExxonMobil. In R&D, they are exploring areas such as new catalytic and
separation materials, novel low-energy process development and scale-up, advanced performance materials, and improved means of CO₂ storage. Our scientists
have written more than 1,000 peer-reviewed publications and received more than 10,000 patents over the past decade. In addition, we collaborate with more
than 80 universities around the world, four energy centers, and several U.S. national laboratories. These collaborations have increased knowledge in key areas
important to the energy transition: fugitive methane emissions detection and modeling; optimization techniques to understand CO₂ storage; electrification of
processes; lower-emission fuels; and energy systems models.

We also monitor emerging lower-emission technologies for future research opportunities and to improve understanding of likely energy transition pathways. Our
research and development approach focuses on areas that align with our businesses.

Core R&D capabilities

▪ Engineering ▪ Emerging technology ▪ Catalysis

▪ Process & scale-up ▪ Modeling & data science ▪ Chemistry
▪ Production technology ▪ Energy modeling ▪ Physics
▪ Geoscience ▪ Biology ▪ Materials science

Energy center collaborations

National labs

| 2024 Advancing Climate Solutions

Innovating across our value chain

Feed Conversion/separation
Biomass – We are working to expand the range of options for biofuels New catalysts – Our catalysts have applications in performance materials
feedstocks, ranging from vegetable oils to wood wastes, cover crops, and and lower-emission fuels, including renewable fuels. For example, our
more. These have potential application at our biofuels facilities, such as our dewaxing catalyst provides higher yield with less hydrogen consumption
Strathcona renewable diesel plant and future advanced biofuel deployments. while improving the diesel flow at low temperatures.
Plastic waste – We focus on plastics that are difficult to recycle mechanically, Low-energy separations – Reducing the energy needed to sort molecules
allowing us to use a wider range of mixed and soiled plastic waste to make (i.e., isolate hydrocarbons for use in the refining or chemical process) can
valuable raw materials safely, reliably, and economically at scale. dramatically reduce emissions in our manufacturing. Our scientists are
Methane detection – We are testing and deploying innovative technology building off years of research with university partners to identify ways to
on the ground, in the sky, and even in space to identify and mitigate fugitive improve the scalability of this technology.1,2
emissions in our natural gas value chain, which supports the production of
low-carbon hydrogen. GHG abatement and energy efficiency – As part of our GHG roadmaps, we
are working across our sites to apply modeling that can drive efficiencies,
support future deployment of carbon capture in our operations, explore
opportunities for electrification and heat recovery, and pursue the full range
of large and small optimizations that may lower emissions.

| 2024 Advancing Climate Solutions

Products Direct air capture (DAC) – We believe there is potential for direct air capture
to play an important role in reducing greenhouse gas emissions, and
Hydrogen – We are developing improved, lower-cost technology for ExxonMobil plans to play a lead role in accelerating the development of
production of low-carbon hydrogen at scale. We are also working with cost competitive and scalable DAC technology with our in-house expertise
leading combustion equipment manufacturers on burners to enable and select partners. We are planning for a prototype demonstration of our
industrial fuel switching to hydrogen while controlling NOx emissions. In DAC platform in early 2024. Our goal is to produce a low-cost commercial
addition, we are working with the U.S. Department of Energy and industry platform at scale, in line with the improvements we expect to realize through
organizations to evaluate safe and cost-effective hydrogen transport, which rapid learning cycles.
could enable us to grow the supply of hydrogen for a wide range of end
users.3 Carbon storage – To support the required scale-up of global geologic CO₂
Performance materials – We are developing and deploying new thermosets, storage, we continue to build on our experience and develop improvements
thermoplastics, fillers, and lubricants to enable improved performance while such as rapid modeling tools. One such example is our support for Stanford
using less materials and reducing energy use for products used in society. University to develop a machine learning framework for CO₂ storage
For example, our ProxximaTM thermoset resin system, based on Nobel Prize- modeling.4 Approaches like this have the potential to enable real-time
winning technology, provides stepout advantages in a range of applications modeling. Another area is our collaboration with the University of Texas at
including wind turbine blades, concrete reinforcement, and automotive Austin, the National Energy Technology Laboratory, and Brooklyn College
applications. We are also studying additional opportunities for materials in and the Benjamin Levich Institute at City College, both part of City University
the energy transition. of New York, where our laboratory simulations indicate that the pore-scale
sealing of caprocks is maintained under geological CO₂ storage conditions.
Lower-emission fuels – Our continuing research in advanced biofuels
could lead to improved longer-term solutions by converting lower-value, Nature-based solutions – We continue to evaluate the potential
bio-based feedstock into renewable fuels. For example, we have identified opportunities to remove carbon from the atmosphere, including prairies,
a new pathway for the production of sustainable aviation fuel (SAF) from grassland, and other nature-based options.
renewable methanol, which can produce jet fuel with high selectivity and
lead to reduced GHG emissions. In addition, we are leading the industry Life-cycle assessment – The Sustainable Energy System Analysis Modeling
through a technical evaluation of this pathway to certify its use in aircraft. Environment (SESAME) tool we have been developing with the MIT Energy
Initiative can perform full life-cycle assessments for more than 1,000
Carbon management technology pathways, from primary energy sources to final products or
services.5
Post-combustion carbon capture – ExxonMobil and Mitsubishi Heavy
Industries (MHI) have entered a strategic alliance to deploy MHI’s leading Footnotes
CO₂ capture technology as part of ExxonMobil’s end-to-end carbon capture
and storage solution for industrial customers. The alliance also leverages our 1. K. Thompson, R. Mathias, D. Kim, J. Kim, N. Rangnekar, J. Johnson, S. Hoy, I. Bechis, A. Tarzia, K. Jelfs, B.
McCool, A. Livingston, R. Lively, M. Finn, N-Aryl-linked spirocyclic polymers for membrane separations of
combined core capabilities in engineering and science to advance the carbon complex hydrocarbon mixtures, Science 369 (6501) (2020) 310-315.
capture technology for improved performance and lower overall cost of CO₂ 2. Siyao Li, Ruijiao Dong, Valentina-Elena Musteata, Jihoon Kim, Neel D. Rangnekar, J. R. Johnson, Bennett D.
Marshall, Stefan Chisca, Jia Xu, Scott Hoy, Benjamin A. McCool, Suzana P. Nunes, Zhiwei Jiang, Andrew G.
capture. Livingston, Hydrophobic polyamide nanofilms provide rapid transport for crude oil separation, Science 377
(6614) (2022) 1555-1561.
With our partner FuelCell Energy, we are progressing the development 3. HyBlend Project to Accelerate Potential for Blending Hydrogen in Natural Gas Pipelines, https://www.
nrel.gov/news/program/2020/hyblend-project-to-acceleratepotential-for-blending-hydrogen-in-natural-
of a next-generation carbonate fuel cell technology for CO₂ capture from gas-pipelines.html; HyBlend: Pipeline CRADA Materials R&D, https://www.hydrogen.energy.gov/docs/
hydrogenprogramlibraries/pdfs/review22/in035_san_marchi_2022_o-pdf.pdf.
industrial point sources. A project is planned at our Rotterdam refinery
4. Gege Wen, Zongyi Li, Kamyar Azizzadenesheli, Anima Anandkumar, Sally M Benson, Real-time high-
to validate fuel cell performance and lower cost of CO₂ avoidance in an resolution CO₂ geological storage prediction using nested Fourier neural operators, Energy & Environmental
industrial deployment. We are developing commercialization options as part Science 16 (2023) 1732-1741.
5. E. Gencer, S. Torkamani, I. Miller, T. Wu, F. O’Sullivan, Sustainable energy system analysis modeling
of our Low Carbon Solutions portfolio. environment: analyzing life-cycle emissions of the energy transition, Applied Energy 277 (2020) 115550.

| 2024 Advancing Climate Solutions

Advocating for essential policy support
We recognize the important role that supportive government policies play in the development and deployment of lower-emission technologies, including those
that are part of our Low Carbon Solutions business.
Clear and consistent policies, along with advancements in technology, can act as an accelerator for lower-emission alternatives, which is why we actively
participate in climate-related policy engagements around the world, including our work with the IPCC.
We focus on practical policy solutions that consider both sides of the “and” equation: rising global demand for affordable, reliable energy, and scalable
development of technologies with lower greenhouse gas emissions.

Understanding life-cycle emissions to better inform policy decisions

We have been working with the MIT Energy Initiative to develop a new life-cycle approach tool that covers pathways of multiple technologies representing most
sources of greenhouse gas emissions. This tool, called the Sustainable Energy System Analysis Modeling Environment (SESAME),1 is based on well-referenced,
peer-reviewed public sources. It will evolve to perform full life-cycle analyses for more than 1,000 technology pathways, from primary energy sources to final
products or services including those from the power, transportation, industrial, and residential sectors. To date, a series of SESAME-related publications in peer-
reviewed journals have been released exploring areas such as the U.S. electric power systems.2,3,4

For example, a coordinated and transparent economy-wide price on carbon such as a carbon tax would enable all technologies to compete and cost-effectively
lower carbon emissions intensity by focusing on reducing emissions per unit of energy while delivering meaningful emission reductions. Broad adoption of an
economy-wide price on carbon could also help spur the development of global carbon markets as envisioned in Article 6 of the Paris Agreement.
In the absence of economy-wide carbon pricing, well-designed sector-based policy options, along with technology advancements, could also be an effective
way to reduce emissions. We support the approaches outlined below, which help address greenhouse gas emissions in hard-to-decarbonize sectors of the
economy, including manufacturing, transportation, and power generation.

| 2024 Advancing Climate Solutions

Manufacturing Transportation
To reduce industrial emissions in the manufacturing sector, our focus is on A holistic low-carbon transport policy that combines a market-based,
both carbon capture and storage and hydrogen. To drive investment and technology-neutral fuel standard with a life-cycle vehicle CO₂ emission
deploy these technologies at the pace and scale needed for a net-zero standard could drive emission reductions across the entire vehicle fleet.
future, governments must establish durable regulatory and legal frameworks
as well as incentives similar to those available for more established lower- We advocate for a carbon intensity-based fuel standard approach that can
emission technologies such as solar and wind. The U.S. Inflation Reduction be extended to the aviation and marine sectors. We are a lead participant
Act (IRA), enacted in 2022, provides some of the government support in developing the American Petroleum Institute’s policy framework that
described in this document. The IRA leverages a life-cycle assessment includes actions to reduce life-cycle emissions in the U.S. transportation
approach as the method for assessing the greenhouse gas emissions of sector.
low-carbon hydrogen and transportation fuels, and it defines the value of
corresponding credits by the emissions intensity achieved on a life-cycle
basis.
Power generation
We support a policy and regulatory framework for carbon capture and
storage that would: A technology-neutral clean-energy standard or carbon-intensity standard
could reduce CO₂ emissions in the electricity sector by setting targets based
• Sustain long-term government support for research and development. on carbon intensity and incentivizing necessary infrastructure and lower-
• Provide standards to ensure safe and secure CO₂ storage. emission options. These include natural gas, renewables, and bioenergy, as
• Allow for fit-for-purpose CO₂ injection well design standards. well as negative-emission technologies like carbon capture and storage and
• Provide legal certainty for geologic storage ownership. direct air capture.
• Ensure a streamlined permitting process for carbon capture and storage We participated in the U.S. Chamber of Commerce’s development of policy
facilities. principles to underpin a U.S. clean energy standard for the electricity sector.
• Provide access to CO₂ storage capacity owned or controlled by We continue to support engagement with the U.S. government on this issue.
governments.
• Allow for high-quality offsets generated from carbon capture and As part of our participation in policy discussions, we engage through trade
storage, low-carbon, and carbon-removal projects. associations and industry collaborations, including the Oil and Gas Climate
We are participating in several studies, including the National Petroleum Initiative. We are also actively engaged in the development of studies and
Council’s report on low-carbon hydrogen, to assess emissions during reports designed to better inform policy decisions. For example, we have
hydrogen production and transportation as well as the benefits of hydrogen leadership roles on two National Petroleum Council reports, one focusing on
on a full life-cycle intensity basis versus alternatives. hydrogen and the other on natural gas.

We use various communication channels including this report, press

releases, ExxonMobil.com, and the Exxchange advocacy portal to clearly and
transparently articulate our climate-related policy positions. These positions
inform and provide the basis for our lobbying and advocacy efforts.

| 2024 Advancing Climate Solutions

U.S. Inflation Reduction Act 45V credit by GHG intensity5
Well-to-Gate GHG Intensity, kg CO₂eq/kg H₂

Our international affiliates are also engaged in climate-related policy developments and initiatives. For example, our Imperial Oil affiliate in Canada will work
alongside our partners, the Government of Canada, and the Government of Alberta toward the goal of achieving net-zero GHG emissions from oil sands
operations by 2050,6 collectively reducing an estimated 68 Mt/CO₂e per year.7

| 2024 Advancing Climate Solutions

Policy impact Ranges provided for jurisdictions where ExxonMobil operates or invests.

Our Global Outlook seeks to identify potential impacts of climate-related ExxonMobil’s GHG emissions pricing for 2023-2030 is based on currently
policies by using various assumptions and tools, including applications stated existing or anticipated policies; pricing for 2030-2050 reflects
of a proxy cost of carbon, to estimate potential impacts on global energy presumed regional policies for both advanced and emerging economies.
demand.
Separately, we use proprietary greenhouse gas pricing where we operate ExxonMobil’s GHG emissions pricing is in 2023 USD and has not been
and invest. Where policy provides greenhouse gas pricing, we align with adjusted for future inflation.
and apply such greenhouse gas pricing to evaluate investment opportunities
and estimate operating costs, where appropriate, for specific greenhouse For 2023 and 2024, we have not applied GHG emission prices to our
gas emissions sources. International accords and underlying regional and operations or investments in countries where there is no existing GHG
national regulations covering greenhouse gas emissions continue to evolve emission price. We do apply anticipated prices within the range identified in
with uncertain timing, outcome, and potential business impact. Where the table in those countries beginning in 2025.
greenhouse gas pricing policy currently does not exist, we assume a price
informed by the Global Outlook proxy cost of carbon. ExxonMobil’s GHG emissions prices include CO₂ and other GHGs (e.g.,
methane), where appropriate.
Greenhouse gas emissions pricing where ExxonMobil operates
or invests8,9
The greenhouse gas pricing we use for planning is similar to ranges
provided by the third parties referenced below. Footnotes
1. E. Gencer, S. Torkamani, I. Miller, T. Wu, F. O’Sullivan, Sustainable energy system analysis modeling
environment: analyzing life-cycle emissions of the energy transition, Applied Energy 277 (2020) 115550.
https://sesame.mit.edu/.
2. E. Kasseris, N. Goteti, S. Kumari, B. Clinton, S. Engelkemier, S. Torkamani, T. Akau, E. Gencer, Highlighting
and overcoming data barriers: creating open data for retrospective analysis of US electric power systems by
consolidating publicly available sources, Environmental Research Communications 2 (2020) 115001.
3. I. Miller, E. Gencer, H. Vogelbaum, P. Brown, S. Torkamani, F. O'Sullivan, Parametric modeling of life-cycle
greenhouse gas emissions from photovoltaic power, Applied Energy 238 (2019) 760-774.
4. I. Miller, M. Arbabzadeh, E. Gencer, Hourly power grid variations, electric vehicle charging patterns, and
operating emissions, Environmental Science & technology 2020, 54, 16071-16085.
5. H.R.5376 – Inflation Reduction Act of 2022, SEC. 45V. Credit for production of clean hydrogen.
6. Scope 1 and 2.
7. 2023 Imperial Oil Advancing Climate Solutions Report: https://www.imperialoil.ca/-/media/imperial/files/
publications-and-reports/advancing-climate-solutions-report.pdf.
8. World Bank: State and Trends of Carbon Pricing 2023, https://openknowledge.worldbank.org/entities/
publication/58f2a409-9bb7-4ee6-899d-be47835c838f. Reference World Bank ranges are consistent with
existing carbon pricing for those jurisdictions as of March 31, 2023.
9. IEA World Energy Outlook 2023. IEA ranges have been adjusted for 2023$ Real.

World Bank EM GHG Emissions IEA WEO STEPS

Carbon prices Prices CO₂ prices
($/metric ton CO₂ -
2023$ Real) 2023-2050 2030 2050
Advanced 4-96 4-150 <136 <162
economies
Emerging 1-13 2-100 <29 <55
economies
| 2024 Advancing Climate Solutions
Portfolio life-cycle emissions
All credible third-party net-zero carbon emissions scenarios reflect the critical role oil and natural gas play in growing modern economies and improving
quality of life. While these scenarios may differ in the speed at which these forms of energy will be displaced, all agree that oil and natural gas and the products
produced from them will remain essential for decades to come.

It is also clear that the combustion of oil and gas generates CO₂ emissions that pose a risk in the form of climate change. These emissions, generated across a
global energy system built over the last century for trillions of dollars, must be reduced. At the same time, we must continue to meet society’s critical need for
affordable energy by investing trillions of dollars more in capacity to help more than a billion people escape poverty. Addressing both requires serious thought,
an objective assessment of the challenges, and actionable plans, anchored in reality.

We need to develop solutions that address the problem – emissions – while continuing to meet societal needs. All solutions should be on the table. Viable
solutions must be affordable, reliable, and available at scale – to span the globe. We need a measurement system that objectively evaluates the amount of
emission reduced and the associated cost. To do this, society will require sound policy (the U.S. Inflation Reduction Act, with a focus on carbon intensity, was a
good start) that supports the growth of efficient emission-reduction solutions. Equally important, but far less discussed, is the imperative for an effective method
to account for emissions. This is critical to understand how to affordably meet society’s growing energy needs while efficiently reducing emissions.

Regrettably, there is no existing, comprehensive carbon “accounting system” for greenhouse gas emissions. The current, widely used proxy is the GHG Protocol,
which divides absolute emissions into different categories (Scope 1, 2 and 3). When applied to a company, the emissions calculated for each category are:

• Scope 1 emissions, the direct result of a company’s operations.

• Scope 2 emissions, associated with a company’s third-party purchases of electricity, steam, heat and cooling (e.g., emissions from a power company).

• Scope 3 emissions, all indirect emissions (not included in Scope 2) that occur in the value chain of the reporting company, including both upstream and
downstream emissions.

Designed decades ago, the Protocol was intended to draw attention to not just direct emissions but indirect emissions, creating more transparency to the
full scope of societal activities that would need to be addressed to tackle climate change. However, it is far less effective at assessing a company’s emissions
efficiency or comparing the emission intensity of alternatives. Using the Protocol to understand how societal activities generate emissions at a macro level is
appropriate and useful; using anything other than Scope 1 emissions as an assessment tool to measure and manage company or sector-wide emissions is flawed
with the potential for significant, unintended consequences.

The most obvious shortcoming of the GHG Protocol is the double-counting of emissions. ExxonMobil’s Scope 2 emissions are the power company’s Scope 1;
our Scope 3 emissions are the consumer’s Scope 1; our Scope 1 are a factory’s Scope 2; and so on. There is no viable method of quantifying emissions and the
impact of reduction steps when the same emissions are counted repeatedly. Making a company responsible for reductions, with targets, outside of Scope 1
emissions, distorts accountability and undermines the incentive for each responsible party to act. When everybody is responsible, nobody is responsible.

A particularly flawed application of the Protocol is holding suppliers accountable for their customers’ choices and their resulting absolute emissions (Scope 3).
It disincentivizes supply but does not change demand. When responsible producers stop supplying product, the remaining demand is met by other producers,
potentially less responsibly. Production and emissions are not reduced, just moved.

| 2024 Advancing Climate Solutions

Case study: Does it matter which company makes the gasoline you buy? In addition, the Protocol does not recognize third-party abated emissions.
Company A is an experienced, large, publicly traded company with a It does not give credit for a company’s activities to help another company
focus on emissions reporting and transparency. Company B is in the same reduce its emissions. For example, ExxonMobil’s calculated emissions under
business as Company A but is in a location where it is not subject to the the Protocol will go up as we grow a carbon capture and storage business
same standards. If Company A is forced to reduce supply to meet absolute to eliminate a far greater amount of emissions from hard-to-decarbonize
Scope 3 emission reduction targets, that demand will be met by Company industrial companies. Measuring a company’s effort to reduce societal
B, with the resulting emissions required to meet demand being higher. emissions using the GHG Protocol will disincentivize necessary investments
to help third parties reduce emissions at scale.
Case study: What happens when demand is not met? Prices go up. This was
demonstrated when Russia shut off gas supply to Europe. Fuel switching The issues highlighted above are a result of using an established metric,
was another outcome as Europe burned more coal, resulting in higher the GHG Protocol, to measure the right thing (emissions reductions) in the
emissions compared to natural gas. wrong way (assessments and targets on absolute Scope 2 and 3 emissions).
Doing this penalizes companies like ExxonMobil for their size and their
Since the GHG Protocol is an absolute measure, it can’t be used to compare efforts to help others reduce their emissions through services and products
alternatives to determine the least emission-intensive option for meeting like carbon capture, plastics, biofuels, and LNG. An effective assessment of
demand or an established need. Large producers will have large emissions the most responsible operator, with the lowest emission intensity, producing
even if they make a product with fewer emissions than a smaller producer products that lower society’s overall emissions is critically important to
making a lower volume of the same product. The trade-offs between achieving significant reductions while continuing to meet society’s critical
alternative products that meet the same need with different levels of needs.
emissions also can’t be assessed. Without a relative measure of emissions
intensity, it isn’t possible to identify and promote the most responsible To do this, we need a carbon measurement and accounting system, along
energy producers, the lowest-emission products, and the most effective with an assessment approach, that encourages the right actions. It should
technologies in efficiently reducing emissions. Setting targets for absolute allow comparisons of alternatives at a company level (e.g., the emissions
reductions without understanding the relative emissions intensity will generated by two of companies of different sizes, making the same
disincentivize the most responsible and efficient producers and the lowest- product) and at a product level (e.g., alternative products meeting the same
emission products from growing – benefiting less efficient producers and need). It should also incentivize the least emission-intense companies to
products. invest to meet society’s growing need for affordable energy, with lower
emissions.
Because the GHG Protocol does not allow for relative assessments, it
doesn’t account for the avoided emissions associated with a product A shift to carbon intensity (the emissions associated with a fixed volume
from one value chain or company (e.g., liquefied natural gas) replacing a of production) enables a fair comparison of the emissions efficiency of
product with higher emissions from an alternative value chain or company companies making the same product – irrespective of their size. It will
(e.g., coal). Replacing coal with liquefied natural gas (LNG) in power incentivize companies to reduce emissions by growing lower emissions-
generation results in up to 60% reduction in CO₂ emissions.1 However, a intensive products to replace higher-emission alternatives. Finally, it allows
company producing LNG used to replace coal is penalized for its additional comparison of different products that meet the same need to help ensure
production and emissions, despite the significant overall emission benefits that higher-emission products are replaced with equally viable, lower-
from the reduced use of coal. As a result, there is no incentive for a emission alternatives (e.g., coal vs. LNG).
company to produce an energy product meaningfully lower in emissions
when its emission performance is evaluated using the GHG Protocol – an
unintended consequence resulting from the misuse of the Protocol.

| 2024 Advancing Climate Solutions

To be effective, the system must account for the emissions associated with the development, deployment, use, and disposal of a product, commonly referred
to as a Life Cycle Approach (LCA). An LCA is the only way to ensure a comprehensive accounting for the emissions associated with fulfilling society’s needs.
It allows for fully informed decisions when establishing policies and making choices because it accounts for all the relevant emissions. For instance, when
comparing gasoline-powered engines to electric vehicles (EVs), it is important to account not just for tailpipe emissions but also for emissions associated
with generating the electricity or producing the gasoline. A serious approach to addressing the threat of climate change must be grounded in an objective
methodology focused on assessing and eliminating all emissions – not just those associated with oil and gas – and continuing to meet society’s needs. We must
do both.

LCA will help with this:

• There is no double-counting – emissions that are associated with making and using a product are only accounted for once along the value chain.

• There are no distortions in accountability – activities establish emissions, participation in the activities establishes accountability.

• There are opportunities for informed trade-offs – comprehensive accounting across the life of each alternative fully informs decision making.

• It recognizes societal needs – allowing comparisons between the available alternatives to meet established demands and critical needs.

A problem as serious as climate change requires objective thinking and problem-solving centered on data and facts, using tools, methodologies, and accounting
that are equally objective and just as serious. Today, that doesn’t exist, as policies and solutions being pursued lack a comprehensive analysis that factors in all
relevant challenges. As a result, desired outcomes are not achieved, results are often regressive, and progress is slow. That is not good enough. It is time to get
real and do the math. The world deserves better.

Footnote
1. Based on ExxonMobil analysis for power plant use including EIA U.S. electricity net generation and resulting CO₂ emissions: https://www.eia.gov/tools/faqs/faq.php?id=74&t=11. Reductions may vary based on regional differences and other
variables.

| 2024 Advancing Climate Solutions

2023
Sustainability Report
Executive Summary

Published January 8, 2024

 “I think every piece of this business is
exciting. The way that we approach
our business, the ethics that we bring,
the standards that we hold ourselves
to … we do things the right way for the
right reasons, and I love that about our
company.”
– Darren Woods

| 2023 Sustainability Report | Executive Summary 2

Protect Tomorrow. Today.
Our stakeholders aren’t just here and now – they’re also among the
almost 10 billion people projected to live on the planet in 20501. Access
to affordable and reliable energy is part of every key measure of human
development, and by operating responsibly, working ethically, and adhering
to our core values, we’re positioning ExxonMobil to meet those needs.
That’s what sustainability means for us – managing our business in a way
that creates value for our stakeholders, not just for the next quarter or the
next year, but for the long run. In creating value, we ensure our efforts will
be genuinely sustainable:
• For our communities, this means being a trusted partner that creates
good jobs and operates in a safe and environmentally responsible fashion.
• For our employees, this means creating meaningful work that allows our
diverse and engaged workforce to thrive, with an unrelenting focus on
safety and respect for human rights.
• For our customers, this means meeting their needs for affordable,
reliable, and lower-emissions energy and products, enabling billions of
people around the world to elevate their living standards, life expectancy,
education, and access to the global economy, even as we work to reduce
carbon emissions from our own operations and those of third parties.
• And for our investors, this means delivering attractive returns on the
capital they have entrusted to us – today, tomorrow, and throughout the
energy transition.
Delivering sustainable value for our stakeholders is vital for the long-term
strength of our business. When we succeed in fulfilling these goals, we
make a positive contribution to the world and its people, now and into
the future.

Access to affordable and reliable energy is part of

every key measure of human development

Learn more in our Global Outlook

| 2023 Sustainability Report | Executive Summary 3

Increasing transparency and communicating our progress
We work to continuously improve our disclosures, regularly engaging with our varied stakeholders.

What’s new? Our reporting

In this year's report, we update and enhance our disclosures on a wide Our format this year is also new. We’ve consolidated our publications into
range of topics across our focus areas. This includes: a single area of our website to provide a clearer view by topic. And we
continue to look for opportunities to improve our communications.
• Sharing enhanced information about our efforts on water conservation,
including our collaborations on water stewardship, how we assess water • Our Global Outlook shares our latest view of demand and supply
risk, and site-specific strategies. dynamics for our industry through 2050, forming the basis of our
business planning.
• Refocusing our “Reducing impacts to land and habitats” disclosures
under the banner of “Caring for land and biodiversity,” emphasizing the • Our Advancing Climate Solutions Report describes what we are doing
value that ecosystems provide and bringing greater clarity to our efforts. to tackle the challenge of strengthening energy supply while reducing
greenhouse gas emissions and growing long-term value.
• Discussing the topics of just transition and environmental justice as they
relate to people, communities and our business. • And this Sustainability Report completes the picture as it describes our
approach to managing our business to create value for our stakeholders,
• Providing additional insight into how we manage environmental impacts not just for the next quarter or the next year, but, for the long run.
and plan for decommissioning of our assets.
For additional insight into our workforce, please read our Investing
• Expanding our disclosures on our cybersecurity measures in response to in People report. For more information about how we engage with
increased interest from shareholders and others. governments on climate and other topics, please read our lobbying reports.

ExxonMobil's 14 Focus Areas

Delivering Respecting Advancing climate Caring for land Expanding the

economic benefits human rights solutions and biodiversity plastics life cycle

Evaluating product
Minimizing Enhancing Conserving water Progressing
benefits with life
operational waste process safety resources product safety
cycle assessments

Managing
Improving Leading in
socioeconomic Investing in people
air quality personnel safety
impacts

| 2023 Sustainability Report | Executive Summary 4

Integrating sustainability into what we do
In our view, the expectations of our We Are ExxonMobil leadership culture position us for long-
term success. Our formal leadership training, redesigned and relaunched in 2022, is helping to
unlock greater opportunities for our employees by connecting our core values with our strategic
priorities.
In the context of sustainability, we’ve identified 14 Focus Areas we believe have the most
potential impact to our company and society. To establish these focus areas, we examined
potential environmental and social impacts in the context of our business strategies, in
consultation with internal and external stakeholders and informed by the United Nations
Sustainable Development Goals. We develop strategies, allocate resources, and execute plans
to address the risks and opportunities within each area.
Our success is enabled by the people in our workforce – the cornerstone of our efforts to
Protect Tomorrow. Today.

Sustainability approach

ade r shi p
Le
man c e

Appli c
or

t io
rf n
Pe

Leadership Application Performance

Our governance Strategies, capital, Execution of plans,
and business ethics innovation, and processes and
underpin our actions stakeholder engagement stewardship of progress
and behaviors. This enable us to focus our support delivery in
internal leadership drives resources and develop areas of focus and drive
our policies, systems, plans in the areas of continuous improvement.
expectations and greatest potential impact
standards. to ExxonMobil and
society.

| 2023 Sustainability Report | Executive Summary 5

Operations Integrity Management System
Our Safety, Security, Health, Environmental, and Product Safety policies We often operate in remote and sensitive environments and in highly
are put into practice through a comprehensive, disciplined management populated, thriving communities. This means the systematic, structured, and
framework called the Operations Integrity Management System (OIMS). disciplined approach OIMS provides is vital to delivering value and helping
us to measure progress and track accountability.
Our OIMS framework establishes consistent worldwide expectations for
our company and people. It addresses risk in all aspects of our business, The OIMS Framework is applied across ExxonMobil, and we monitor
including potential impacts to personnel and process safety, security, health, our joint ventures and company assets operated by others against OIMS
our communities, and the environment. expectations – a collaborative exercise to reduce risk in activities beyond
our operational control.
Each of the 11 elements within OIMS contains consistent objectives, specific
expectations, and detailed processes for implementation.

Operations

2
Identifying, assessing,
3
Designing, constructing &
4
Providing information
needed for construction
mitigating & accepting risk preparing for start up
operation & maintenance

1 5
Selecting, training, engaging
6
Operating & maintaining
7 11
Leading, managing & Managing changes Assessing & driving
driving performance & enabling people assets effectiveness

8
Selecting & engaging with
9
Learning from operating
10
Preparing for emergencies
& managing potential risk to
third-party providers experience & incidents
the community

Improvements

| 2023 Sustainability Report | Executive Summary 6

 100%
Progressing environmental initiatives
Our Advancing Climate Solutions Report details our approach to increasing the
supply of energy and essential products while helping reduce greenhouse gas
of the water used in our Permian hydraulic fracturing
emissions in support of a net-zero future.
operations comes from recycled or brackish sources*
But our environmental story doesn’t end there. Biodiversity, waste management,

14
water conservation, air quality – all are important issues to us. Specifically, we are
focused on:

• Our efforts to reduce impacts to land and biodiversity, beginning by understanding

and measuring the benefits gained from an ecosystem’s biodiversity, such as Conservation Certification® programs in the U.S. and
pollination of crops, food, clean air, and physical and spiritual well-being for Canada
humans and animals.

>90%
• The quality and supply of freshwater in the communities where we operate, as
demonstrated in our Permian Basin operations by our 10-year water management
roadmap to reduce freshwater intake and manage disposal.2

• The fact that air quality is vital to the health of our communities, which is why we of waste produced at our network of lubricants
continue to focus on emission-reduction activities, including those that aim to blending & packaging plants diverted from landfill
reduce nitrogen oxides and volatile organic compounds at our operated assets.

• The use of a waste mitigation hierarchy that prioritizes waste avoidance. When
waste is unavoidable, we work to reduce, recover, or reuse it whenever possible. 23%
reduction in total reportable emissions of VOC, SOx
and NOx from 2016 to 2022*

38%
reduction in controlled hydrocarbon discharges to water
from 2016 to 2022*

0
reportable plastic pellet losses from resin-handling
facilities*

Data refers to 2022 unless otherwise noted.

| 2023 Sustainability Report | Executive Summary * Refers to operated assets only 7
Creating sustainable solutions
We’re pursuing more than $20 billion in lower-emission investments from plastic waste. And our Product Solutions business offers products to help
2022 through 2027. About 50% of those investments are targeted at our customers more effectively incorporate recycled plastic into their
reducing emissions from our operated assets, with the balance going toward products and make plastic packaging easier to recycle.
enabling other companies to reduce their emissions through technologies
such as carbon capture and storage, as well as the use of hydrogen, lithium, Our scientists and product stewardship professionals collaborate with
and biofuels. Our Advancing Climate Solutions Report describes our resolve industry and academic researchers, regulatory bodies, and policy makers to
to drive meaningful change, the results we’re already delivering, and the help ensure that the best available science informs industry product safety
resiliency of our plans under a wide range of scenarios. policy. We work to identify and manage risks associated with our products
and to avoid the manufacture and sale of products that cannot meet an
Plastics play a vital role in meeting society’s needs. You will find plastics appropriate level of safety for people and the environment. We also have a
in our cars, homes, hospitals, kitchens, daycare centers, science labs, and continuous process of updating and translating into multiple languages our
anywhere humans are thriving. Our expanding advanced recycling capacity vast library of safety data sheets listing risks and proper use of products.
offers greater opportunities for collecting and processing hard-to-recycle

1 billion pounds 40 million pounds >100,000 pounds

of plastic waste recycled with our of plastic waste collected in just four
of annual advanced recycling capacity
ExxtendTM technology through October months at in a single pilot project in
planned by 2026
2023 Houston

0 >70,000 22
high-consequence product stewardship
safety data sheets distributed to peer-reviewed scientific papers published
incidents in Fuels, Lubricants, and
customers in more than 150 countries related to product safety
Chemicals again in 2022

Data refers to 2022 unless otherwise noted.

| 2023 Sustainability Report | Executive Summary 8

 >
$6.5 billion
Engaging communities and our supply chain
Stakeholder feedback is invaluable as we work to safeguard the health and
security of our employees and the public, responsibly manage our social
in spending with local suppliers*, diverse
impacts, and demonstrate our respect for human rights in our operations.
suppliers, and small businesses
Our Standards of Business Conduct detail our foundation policies – our
expectations for global ethical conduct in our business and the way we

50 +
put our core values into practice. These expectations are extended to our
supply chain. We seek to work with suppliers that share our commitment to
promoting responsible sourcing, respecting human rights, and working to years
reduce impacts to the environment. of supplier diversity efforts to support inclusive sourcing
In every ExxonMobil site around the world we work to be transparent and

$158 million
promote long-term, positive relationships with our communities. Guided by
globally recognized principles, our commitment to respecting human rights
is embedded across the company’s operations.

Informed by a scientific understanding of our potential environmental in worldwide giving — view the full report here
impacts and insights into community needs, our integrated socioeconomic
management approach helps to avoid, reduce, or remedy risks and identify

~
160,000
opportunities to have a positive impact. Our work includes initiatives to
support and invest in economic development and respect cultural heritage.

hours volunteered in 2022 to more than 1,450

charitable organizations

>
$128 million
invested between 2005-2022 in programs to
benefit women

40,000 +
security service providers have received human rights
training since 2016

Data refers to 2022 unless otherwise noted.

| 2023 Sustainability Report | Executive Summary * In select countries 9
Caring for our workforce
Care is one of our core values and a key part of our We Are ExxonMobil leadership
culture.

We continue to build a culture where we expect our employees to be respectful

#
1
most attractive U.S. energy company for engineering
and inclusive, to look after each other, and to contribute to the well-being of our students for 10th consecutive year4
communities and the environment.

In our Investing in People report, we describe how we develop our workforce to

advance these behaviors to align with our values and support our business objectives.
We invest in and support employees for long-term careers and are committed to the
meaningful development of a diverse and engaged organization where employees
have opportunities for personal and professional growth.
>
50%
increase in women and minority executives from 2016
to 2022
These efforts support our work to play a leading role in a thoughtful energy
transition, as the capabilities of today’s workforce reflect many of the same critical
skills required for us to help meet the world’s energy needs in a lower-emission
future.

Our safety programs are focused on the very clear goal of Nobody Gets Hurt. They
are underpinned by our Operations Integrity Management System, a framework that
33%
overall board diversity as of May 31, 2023
provides detailed processes so our people can do their part to protect the safety,
security, and health of our employees, contractors, and others involved with our
operations, as well as our customers and the public.

ExxonMobil's Core Values

~
12,000
internal job rotations in support of development plans

0.02 LTIR
Integrity Care Courage Excellence Resilience

Be honest and ethical Be respectful and Take initiative and Hold ourselves to Be determined and
inclusive make a difference high standards persevere
Do what is right
Look after each other Think boldly and act Be thoughtful, Be purposeful and our industry-leading lost-time incident rate per 200,000
Contribute to the
with conviction thorough and
disciplined
steadfast in our
principles
work hours
well-being of our Take personal
communities and the ownership
environment Data refers to 2022 unless otherwise noted.

| 2023 Sustainability Report | Executive Summary 10

We appreciate your interest in our sustainability
journey, and invite you to explore our full
Sustainability Report on our website.

The content and data referenced in this report focus primarily on our operations from Jan. 1, 2022 – Dec. 31, 2022, unless
otherwise indicated. Information regarding some known events or activities in 2023 are also included in the report.

Footnotes
1. https://www.weforum.org/agenda/2019/07/populations-around-world-changed-over-the-years/.
2. Roadmaps aim to identify opportunities, which are subject to change as a result of a number of factors, including the
Company’s planning process, supportive government policy, and/or technology developments.
3. Pellet loss means plastic waste finding its way into the environment potentially accumulating in the external water
environment (https://www.opcleansweep.org/).
ExxonMobil's Papua New Guinea Biodiversity team engaging
4. Universum World’s Most Attractive Employers 2022, p.27.
community members in mapping the natural resources
Forward-Looking Statement Warning
CAUTIONARY STATEMENT RELEVANT TO FORWARD LOOKING INFORMATION FOR THE PURPOSE OF THE “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND OTHER IMPORTANT LEGAL DISCLAIMERS
Images or statements of future ambitions, plans, goals, events, projects, projections, opportunities, or conditions in the publications, including plans to reduce, abate, avoid or enable avoidance of emissions or reduce emissions intensity, sensitivity analyses, expectations, estimates, the development of future
technologies, business plans, and sustainability efforts are dependent on future market factors, such as customer demand, continued technological progress, policy support and timely rule-making or continuation of government incentives and funding, and represent forward-looking statements. Similarly,
emission-reduction roadmaps to drive toward net zero and similar roadmaps for emerging technologies and markets, and water management roadmaps to reduce freshwater intake and/or manage disposal, are forward-looking statements. These statements are not guarantees of future corporate, market
or industry performance or outcomes for society and are subject to numerous risks and uncertainties, many of which are beyond our control or are even unknown.
Actual future results, including the achievement of ambitions to reach Scope 1 and 2 net zero from operated assets by 2050, to reach Scope 1 and 2 net zero in Upstream Permian Basin unconventional operated assets by 2030, to eliminate routine flaring in-line with World Bank Zero Routine Flaring, to
reach near zero methane emissions from operated assets and other methane initiatives, to meet greenhouse gas emission reduction plans or goals, divestment and start-up plans, and associated project plans; technology advances including in the timing and outcome of projects to capture and store CO2
supply lower-emission fuels, produce hydrogen, produce lithium, obtain data on detection, measurement and quantification of emissions including reporting of that data or updates to previous estimates, and use plastic waste as feedstock for advanced recycling; progress in sustainability focus areas; and
reserve or resource changes could vary depending on changes in supply and demand and other market factors affecting future prices of oil, gas, petrochemical or new market products and services; future cash flows; our ability to execute operational objectives on a timely and successful basis; policy and
consumer support for emission-reduction and other advanced products and technology; changes in international treaties, laws, regulations and incentives, including those greenhouse gas emissions, plastics, carbon storage and carbon costs; evolving reporting standards for these topics and evolving
measurement standards for reported data; trade patterns and the development and enforcement of local, national and regional mandates; unforeseen technical or operational difficulties; the outcome of research efforts and future technology developments, including the ability to scale projects and
technologies such as electrification of operations, advanced recycling, CCS, hydrogen production, or direct lithium extraction on a commercially competitive basis; availability of feedstocks for lower-emission fuels, hydrogen, or advanced recycling; changes in the relative energy mix across activities and
geographies; the actions of competitors; changes in regional and global economic growth rates and consumer preferences; actions taken by governments and consumers resulting from a pandemic; changes in population growth, economic development or migration patterns; military build-ups, armed
conflicts, or terrorism; and other factors discussed in this release and in Item 1A. “Risk Factors” in ExxonMobil’s Annual Report on Form 10-K for 2022 and subsequent Quarterly Reports on Forms 10-Q, as well as under the heading “Factors Affecting Future Results” on the Investors page of ExxonMobil’s
website at www.exxonmobil.com. The Advancing Climate Solutions Report includes 2022 greenhouse gas emissions performance data and Scope 3 Category 11 estimates for full-year 2022 as of March 1, 2023. The greenhouse gas intensity and greenhouse gas emission estimates include Scope 2 market-
based emissions. The Sustainability Report, the Advancing Climate Solutions Report, and corresponding Executive Summaries were issued on Jan. 8, 2024. The content and data referenced in these publications focus primarily on our operations from Jan. 1, 2022 – Dec. 31, 2022, unless otherwise indicated.
Tables on our “Metrics and data” page were updated on April 26, 2024, to reflect full-year 2023 data. Information regarding some known events or activities in 2023 are also included. No party should place undue reliance on these forward-looking statements, which speak only as of the dates of these
publications. All forward-looking statements are based on management’s knowledge and reasonable expectations at the time of publication. We do not undertake to provide any further updates or changes to any data or forward-looking statements in these publications. Neither future distribution of this
material nor the continued availability of this material in archive form on our website should be deemed to constitute an update or re-affirmation of these figures or statements as of any future date. Any future update will be provided only through a public disclosure indicating that fact.
See “ABOUT THE ADVANCING CLIMATE SOLUTIONS AND SUSTAINABILITY REPORTS” at the end of this document for additional information on these reports and the use of non-GAAP and other financial measures.
ABOUT THE ADVANCING CLIMATE SOLUTIONS AND SUSTAINABILITY REPORTS
The Advancing Climate Solutions Report contains terms used by the TCFD, as well as information about how the disclosures in this report are consistent with the recommendations of the TCFD. In doing so, ExxonMobil is not obligating itself to use any terms in the way defined by the TCFD or any other
party, nor is it obligating itself to comply with any specific recommendation of the TCFD or to provide any specific disclosure. For example, with respect to the term “material,” individual companies are best suited to determine what information is material, under the long-standing U.S. Supreme Court
definition, and whether to include this information in U.S. Securities and Exchange Act filings. In addition, the ISSB is evaluating standards that provide their interpretation of TCFD which may or may not be consistent with the current TCFD recommendations.
These publications have been prepared at shareholders’ request or for their convenience and intentionally focused on unknown future events that we have been asked to consider. Forward-looking and other statements regarding environmental and other sustainability efforts and aspirations are not
intended to communicate any material investment information under the laws of the United States or represent that these are required disclosures. These publications are not intended to imply that ExxonMobil has access to any significant non-public insights on future events that the reader could not
independently research. In addition, historical, current, and forward-looking environmental and other sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to
change in the future, including future laws and rulemaking. Forward-looking and other statements regarding environmental and other sustainability efforts and aspirations are for informational purposes only and are not intended as an advertisement for ExxonMobil’s equity, debt, businesses, products, or
services and the reader is specifically notified that any investor-requested disclosure or future required disclosure is not and should not be construed as an inducement for the reader to purchase any product or services. The statements and analysis in these publications represent a good faith effort by the
Company to address these investor requests despite significant unknown variables and, at times, inconsistent market data, government policy signals, and calculation, methodologies, or reporting standards.
Actions needed to advance ExxonMobil’s 2030 greenhouse gas emission-reductions plans are incorporated into its medium-term business plans, which are updated annually. The reference case for planning beyond 2030 is based on the Company’s Global Outlook research and publication. The Global
Outlook is reflective of the existing global policy environment and an assumption of increasing policy stringency and technology improvement to 2050. However, the Global Outlook does not attempt to project the degree of required future policy and technology advancement and deployment for the world,
or ExxonMobil, to meet net zero by 2050. As future policies and technology advancements emerge, they will be incorporated into the GIobal Outlook, and the Company’s business plans will be updated as appropriate. References to projects or opportunities may not reflect investment decisions made by the
corporation or its affiliates. Individual projects or opportunities may advance based on a number of factors, including availability of supportive policy, permitting, technological advancement for cost-effective abatement, insights from the company planning process, and alignment with our partners and other
stakeholders. Capital investment guidance in lower-emission investments is based on our corporate plan; however, actual investment levels will be subject to the availability of the opportunity set, public policy support, other factors, and focused on returns.
Energy demand modeling aims to replicate system dynamics of the global energy system, requiring simplifications. The reference to any scenario or any pathway for an energy transition, including any potential net-zero scenario, does not imply ExxonMobil views any particular scenario as likely to occur.
In addition, energy demand scenarios require assumptions on a variety of parameters. As such, the outcome of any given scenario using an energy demand model comes with a high degree of uncertainty. For example, the IEA describes its NZE scenario as extremely challenging, requiring unprecedented
innovation, unprecedented international cooperation, and sustained support and participation from consumers, with steeper reductions required each year since the scenario’s initial release. Third-party scenarios discussed in these reports reflect the modeling assumptions and outputs of their respective
authors, not ExxonMobil, and their use or inclusion herein is not an endorsement by ExxonMobil of their underlying assumptions, likelihood, or probability. Investment decisions are made on the basis of ExxonMobil’s separate planning process but may be secondarily tested for robustness or resiliency
against different assumptions, including against various scenarios. These reports contain information from third parties. ExxonMobil makes no representation or warranty as to the third-party information. Where necessary, ExxonMobil received permission to cite third-party sources, but the information and
data remain under the control and direction of the third parties. ExxonMobil has also provided links in this report to third-party websites for ease of reference. ExxonMobil’s use of the third-party content is not an endorsement or adoption of such information.
ExxonMobil reported emissions, including reductions and avoidance performance data, are based on a combination of measured and estimated data. We assess our performance to support continuous improvement throughout the organization using our Environmental Performance Indicator (EPI) process.
The reporting guidelines and indicators in the Ipieca, the American Petroleum Institute (API), the International Association of Oil and Gas Producers Sustainability Reporting Guidance for the Oil and Gas Industry (4th edition, 2020, revised February 2023) and key chapters of the GHG Protocol inform the EPI
process and the selection of the data reported. Emissions reported are estimates only, and performance data depends on variations in processes and operations, the availability of sufficient data, the quality of those data and methodology used for measurement and estimation. Emissions data is subject to
change as methods, data quality, and technology improvements occur, and changes to performance data may be updated. Emissions, reductions, abatements and enabled avoidance estimates for non-ExxonMobil operated facilities are included in the equity data and similarly may be updated as changes in
the performance data are reported. ExxonMobil’s plans to reduce emissions are good-faith efforts based on current relevant data and methodology, which could be changed or refined. ExxonMobil works to continuously improve its approach to identifying, measuring, and addressing emissions. ExxonMobil
actively engages with industry, including API and Ipieca, to improve emission factors and methodologies, including measurements and estimates.
Any reference to ExxonMobil’s support of, work with, or collaboration with a third-party organization within these publications do not constitute or imply an endorsement by ExxonMobil of any or all of the positions or activities of such organization. ExxonMobil participates, along with other companies,
institutes, universities and other organizations, in various initiatives, campaigns, projects, groups, trade organizations, and other collaborations among industry and through organizations like the United Nations that express various ambitions, aspirations and goals related to climate change, emissions,
sustainability, and the energy transition. ExxonMobil’s participation or membership in such collaborations is not a promise or guarantee that ExxonMobil’s individual ambitions, future performance or policies will align with the collective ambitions of the organizations or the individual ambitions of other
participants, all of which are subject to a variety of uncertainties and other factors, many of which may be beyond ExxonMobil’s control, including government regulation, availability and cost-effectiveness of technologies, and market forces and other risks and uncertainties. Such third parties’ statements
of collaborative or individual ambitions and goals frequently diverge from ExxonMobil’s own ambitions, plans, goals, and commitments. ExxonMobil will continue to make independent decisions regarding the operation of its business, including its climate-related and sustainability-related ambitions, plans,
goals, commitments, and investments. ExxonMobil’s future ambitions, goals and commitments reflect ExxonMobil’s current plans, and ExxonMobil may unilaterally change them for various reasons, including adoption of new reporting standards or practices, market conditions; changes in its portfolio; and
financial, operational, regulatory, reputational, legal and other factors.
References to “resources,” “resource base,” “recoverable resources” and similar terms refer to the total remaining estimated quantities of oil and natural gas that are expected to be ultimately recoverable. The resource base includes quantities of oil and natural gas classified as proved reserves, as well as
quantities that are not yet classified as proved reserves, but that are expected to be ultimately recoverable. The term “resource base” is not intended to correspond to SEC definitions such as “probable” or “possible” reserves. For additional information, see the “Frequently Used Terms” on the Investors page
of the Company’s website at www.exxonmobil.com under the header “Resources.” References to “oil” and “gas” include crude, natural gas liquids, bitumen, synthetic oil, and natural gas. The term “project” as used in these publications can refer to a variety of different activities and does not necessarily have
the same meaning as in any government payment transparency reports.
Exxon Mobil Corporation has numerous affiliates, many with names that include ExxonMobil, Exxon, Mobil, Esso, and XTO. For convenience and simplicity, those terms and terms such as “Corporation,” “company,” “our,” “we,” and “its” are sometimes used as abbreviated references to one or more specific
affiliates or affiliate groups. Abbreviated references describing global or regional operational organizations, and global or regional business lines are also sometimes used for convenience and simplicity. Nothing contained herein is intended to override the corporate separateness of affiliated companies.
Exxon Mobil Corporation’s goals do not guarantee any action or future performance by its affiliates or Exxon Mobil Corporation’s responsibility for those affiliates’ actions and future performance, each affiliate of which manages its own affairs. For convenience and simplicity, words like venture, joint venture,
partnership, co-venturer and partner are used to indicate business relationships involving common activities and interests, and those words may not indicate precise legal relationships. These publications cover Exxon Mobil Corporation’s owned and operated businesses and do not address the performance
or operations of our suppliers, contractors or partners unless otherwise noted. In the case of certain joint ventures for which ExxonMobil is the operator, we often exercise influence but not control. Thus, the governance, processes, management and strategy of these joint ventures may differ from those in
these reports. At the time of publication, ExxonMobil has completed the acquisition of Denbury Inc. and is in the process of acquiring Pioneer Natural Resources. These reports do not speak of these companies’ historic governance, risk management, strategy approaches or emissions performance unless
specifically referenced.
These reports or any material therein is not to be used or reproduced without the permission of Exxon Mobil Corporation. All rights reserved.
SUPPLEMENTAL INFORMATION FOR NON-GAAP AND OTHER MEASURES
The Resiliency section of the Advancing Climate Solutions Report mentions modeled operating cash flow in comparing different businesses over time in a future scenario. Historic operating cash flow is defined as net income, plus depreciation, depletion and amortization for consolidated and equity
companies, plus noncash adjustments related to asset retirement obligations plus proceeds from asset sales. The Company’s long-term portfolio modeling estimates operating cash flow as revenue or margins less cash expenses, taxes and abandonment expenditures plus proceeds from asset sales before
portfolio capital expenditures. The Company believes this measure can be helpful in assessing the resiliency of the business to generate cash from different potential future markets. The performance data presented in the Advancing Climate Solutions Report and Sustainability Report, including on emissions,
is not financial data and is not GAAP data.

| 2023 Sustainability Report | Executive Summary

5/6/24, 2:44 PM Our approach to sustainability | ExxonMobil

Our approach to sustainability

Our approach
ExxonMobil is committed to creating sustainable solutions that improve quality of
life and meet society’s evolving needs. We intend to do this in ways that help
protect people, the environment and the communities where we operate.

Our talented and dedicated workforce forms the cornerstone of our efforts to
Protect Tomorrow. Today.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Our-approach-to-sustainability?disableCoo… 1/4
5/6/24, 2:44 PM Our approach to sustainability | ExxonMobil

Our approach

Integrating
sustainability
into what
we do
ExxonMobil is committed
to creating sustainable
solutions that improve
quality of life and meet
society’s evolving needs.

Leadership
ExxonMobil strives to be
the most responsible
operator in our industry,
while achieving strong
financial and operating
results.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Our-approach-to-sustainability?disableCoo… 2/4
5/6/24, 2:44 PM Our approach to sustainability | ExxonMobil

Application
ExxonMobil has defined
14 Sustainability Focus
Areas that were
developed by analyzing
our environmental and
social impacts, business
strategies, and internal
and external
stakeholders’ priorities.

Performance
We have built an
organizational and
governance structure
around our focus areas
to ensure top-to-bottom
and bottom-to-top
alignment.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Our-approach-to-sustainability?disableCoo… 3/4
5/6/24, 2:44 PM Our approach to sustainability | ExxonMobil

Executive Summary

Governance and executive compensation

Metrics and data

Content index

Build your own report

Click here to build your report 

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Our-approach-to-sustainability?disableCoo… 4/4
5/6/24, 2:45 PM Integrating sustainability into what we do | ExxonMobil

Sustainability

Integrating sustainability into what we do

Report
Jan. 8, 2024

ExxonMobil is committed to creating sustainable solutions that improve quality of

life and meet society’s evolving needs. We intend to do this in ways that help
protect people, the environment, and the communities where we operate.

Our focus on innovation and technology, combined with supportive government

policies, can further accelerate large-scale deployment of solutions essential to
enabling modern life and lowering greenhouse gas emissions, including those for
low-carbon initiatives already underway.

We strive to play a leading role in the energy transition, and plan to accomplish this
by applying the company’s core strengths, which include scale, integration,
technology, functional excellence, and our people.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Our-approach-to-sustainability/Integrating-… 1/3
5/6/24, 2:45 PM Integrating sustainability into what we do | ExxonMobil

Our approach to sustainability

Integrating sustainability into what we do

Leadership

Application

Performance

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Our-approach-to-sustainability/Integrating-… 2/3
5/6/24, 2:45 PM Integrating sustainability into what we do | ExxonMobil

Sustainability at ExxonMobil
Our approach to sustainability

Progressing environmental initiatives

Creating sustainable solutions

Engaging communities and our supply chain

Caring for our workforce

Build your own report

Click here to build your own report 

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Our-approach-to-sustainability/Integrating-… 3/3
5/6/24, 2:46 PM Leadership | ExxonMobil

Sustainability

Leadership

Report
Jan. 8, 2024

ExxonMobil strives to be the most responsible operator in our industry, while

achieving strong financial and operating results. We are proud of our dedication to
adhere to the highest ethical standards and to run safe and environmentally
responsible operations.

Corporate governance
Our Board of Directors oversees our strategy, providing strong corporate
governance and guidance to management.

We Are ExxonMobil leadership culture

The strength of our culture has underpinned our success for decades. We leverage
our We Are ExxonMobil culture framework to clearly articulate our core values and
leadership expectations to position our company for long-term success.

In our operations around the world, there is a shared commitment to excellence in

pursuit of our common goals. Our culture is enabled by a strong focus on
leadership and key talent systems, including performance assessments, on-the-job
experience, and formal training.

In 2022, we initiated our redesigned leadership programs which were developed in

partnership with the University of Michigan and the University of North Carolina.
These programs are designed to better help our supervisors and managers fully
understand We are ExxonMobil, connect it with our strategic priorities, and unlock
the full potential of our employees.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Our-approach-to-sustainability/Leadership… 1/6
5/6/24, 2:46 PM Leadership | ExxonMobil

Ethics and integrity

Our core value of Integrity inspires our dedication to upholding the highest ethical
standards and to do what’s right in all aspects of our business. Our Standards of
Business Conduct set the ethical conduct expectations for all employees of Exxon
Mobil Corporation. Wholly owned and majority-owned subsidiaries generally adopt
policies similar to our foundation policies. As such, our policies express our
expectations and define the basis for the worldwide conduct of our businesses and
our majority-owned subsidiaries. Our Standards of Business Conduct are a key
part of onboarding new employees, and our Standards are reinforced and
communicated to employees annually. Employees are regularly required to
complete business practices training, which is planned to be conducted again in
2024. We require all employees, officers, directors, and those working on our
behalf to comply with all applicable laws.

We encourage employees and contractors to ask questions and voice concerns,

and we insist on the reporting of any alleged violations of company policies. Our
open-door communication procedures provide both formal and informal
mechanisms for employee feedback, and employees can report through our
anonymous mailing address and 24-hour hotline, among other options.
Maintaining confidentiality to the extent possible is critical to the process, and we
have protections in place to prevent retaliation against any employee for submitting
concerns. A hotline steering committee reviews reports of suspected violations and
provides a quarterly summary to the Board’s Audit Committee. In addition, our
annual supplier communications letter provides mechanisms, including phone
numbers by region, for feedback from contractors, including questions or
concerns related to application of our business standards.

The Board’s Audit Committee consists of four independent non-employee directors

and assists the Board in fulfilling its responsibility to oversee financial reporting,
accounting, and internal control matters for the company. This includes compliance
with legal and regulatory requirements and ExxonMobil policy violations. Confirmed
violations can lead to disciplinary actions, up to and including termination. For more
information on the Audit Committee, please see the company’s annual proxy
statement on our Investor webpage.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Our-approach-to-sustainability/Leadership… 2/6
5/6/24, 2:46 PM Leadership | ExxonMobil

Employees in relevant job functions receive online and in-person training on

antitrust, anti-corruption, anti-boycott, trade sanctions, and export controls soon
after entering their positions. Training is refreshed on an annual or biennial basis.
ExxonMobil-specific and other relevant training is shared with contractors if
required to perform contracted services within our facilities. In 2022, more than
23,000 employees and contractors participated in relevant training.

Regular internal audits and self-assessments help us to verify the effectiveness of

our control systems and adherence to Standards of Business Conduct. On a rolling
basis, our team of internal auditors annually reviews approximately one-third of
ExxonMobil’s activities and processes. We thoroughly investigate suspected acts of
noncompliance, and internal auditors have access to all operations, records,
personnel, and properties.

Standards of Business Conduct

Procedures and open-door communications
Proxy Statement

Our policies, systems, expectations, and standards

The methods we employ to achieve our strategic priorities are as important as the
results themselves. Each of our directors, officers, and employees is expected to
observe the highest standards of integrity.

The Board of Directors has adopted and oversees the administration of our
Standards of Business Conduct, which include foundation policies covering
environment, health, safety, product safety, customer relations, equal employment
opportunity, and harassment in the workplace. These policies and standards define
the ethical conduct of ExxonMobil including our values on important matters like
human rights, labor, the environment, and anti-corruption. Our directors, officers,
and employees are required to review these policies annually and apply them in
their work. Wholly owned and majority-owned subsidiaries of Exxon Mobil
Corporation generally adopt policies similar to the Corporation's foundation
policies.

Across our global operations, we apply rigorous management systems to identify,

track, and report the metrics that demonstrate and guide our performance. These
systems enable us to comply with regulations and provide a framework for
maintaining high standards in places where applicable laws or regulations do not
exist.

Our Operations Integrity Management System (OIMS) establishes expectations

that apply across all our operations to address risks inherent to our business,
including environmental risks. The OIMS framework contains 11 elements related
to leadership, operations and maintenance, community relations, emergency
response, incident investigation, information and documentation, among other
topics. It also provides protocols and guidance for mitigating risk.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Our-approach-to-sustainability/Leadership… 3/6
5/6/24, 2:46 PM Leadership | ExxonMobil

Each of the 11 elements within OIMS contains overarching objectives, specific

expectations, and detailed processes for implementation. The OIMS framework is
applied across ExxonMobil, and we monitor the performance of joint ventures and
company assets operated by others against OIMS expectations.

Key policies, systems and standards include:

• Controls Integrity Management System (CIMS): The CIMS is used to assess

and measure financial control risks, identify mitigation procedures, monitor
compliance with standards, and report results to the appropriate operations
and management groups within ExxonMobil.

• Sustainability Management: Environmental Aspects Guide: This guide

establishes a consistent approach to identify, evaluate, and assess
environmental and socioeconomic risks resulting from our activities so these
risks can be managed.

• Environmental Business Plans: These plans address environmental

requirements and expectations as part of the annual business cycle using a
corporate-wide framework.

• Environmental Data Management System (EDMS): The EDMS is used to

collect, collate, and consolidate site-level data at the corporate level to help
manage environmental performance indicators globally. EDMS is being
integrated with existing site-based emissions monitoring and measurement
systems to enable collection of up-to-date, site-specific information.

• Environmental, Socioeconomic, and Health Impact Assessment: These

assessments enable us to perform a formal analysis to identify key
environmental, socioeconomic, and health risks and to develop management
strategies through the full life cycle of an asset.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Our-approach-to-sustainability/Leadership… 4/6
5/6/24, 2:46 PM Leadership | ExxonMobil

• ExxonMobil Capital Projects Management System (EMCAPS): EMCAPS

provides a framework to guide project development and execution and helps
account for environmental and socioeconomic concerns, as well as
regulatory requirements.

• Global Energy Management System: This system identifies opportunities to

improve energy efficiency and reduce greenhouse gas emissions intensity in
downstream and chemical operations.

• IMPACT: IMPACT is a corporate-wide database that captures and analyzes

safety and environmental data on incidents, near-misses, observations,
assessment findings, lessons learned, and follow-up activities.

• National Content Guidelines, Strategies, and Best Practices: This document

outlines the key elements of our national content strategy and plan, models
and tools for the successful development of national content, and roles and
responsibilities at the corporate, country, and project levels.

• Product Stewardship Information Management System: PSIMS applies

common global processes and a global computer system to capture and
communicate information on the safe handling, transport, use, and disposal
of our products.

• Project Environmental Standards (PES): PES identifies applicable company

environmental and socioeconomic standards for new projects.

• Technology Management System: Includes processes for technology

investments that follow a gated management system from early technical
innovation to final deployment.

Management systems, standards and controls

Environmental Aspects Guide (EAG)
Standards of Business Conduct

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Our-approach-to-sustainability/Leadership… 5/6
5/6/24, 2:46 PM Leadership | ExxonMobil

Our approach to sustainability

Integrating sustainability into what we do

Leadership

Application

Performance

Sustainability at ExxonMobil
Our approach to sustainability

Progressing environmental initiatives

Creating sustainable solutions

Engaging communities and our supply chain

Caring for our workforce

Build your own report

Click here to build your own report 

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Our-approach-to-sustainability/Leadership… 6/6
5/6/24, 2:45 PM Application | ExxonMobil

Sustainability

Application

Report
Jan. 8, 2024

ExxonMobil has defined 14 Sustainability Focus Areas that were developed by

analyzing our environmental and social impacts, business strategies, and internal
and external stakeholders’ priorities. We believe these focus areas have the most
potential impact to both ExxonMobil as a company and society. And we develop
strategies, allocate resources, and execute plans to address risks and opportunities
within each of them.

Our Sustainability Focus Areas

Topic selection process

We conduct regular assessments to identify sustainability-related topics of interest
to stakeholders and to enhance our understanding of current events and evolving
business priorities. The findings help inform the development of our Sustainability
Report.

Ipieca, the “global oil and gas association for advancing environmental and social
performance across the energy transition,”1 defines important topics as those that,
in the view of company management and external stakeholders, have the potential
to significantly affect sustainability performance and stakeholder awareness,
assessments, or decisions. In 2021, we engaged a third-party consultant to
conduct a robust topic selection process in line with the Sustainability Reporting
Guidance for the Oil and Gas Industry (4th edition, 2020, revised February 2023)
developed by Ipieca, the American Petroleum Institute and the International
Association of Oil & Gas Producers.

Sustainability reporting guidance for the oil and gas industry

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Our-approach-to-sustainability/Application… 1/8
5/6/24, 2:45 PM Application | ExxonMobil

We further identified topics based on peer benchmarking, a review of leading

sustainability frameworks – including those published by the Global Reporting
Initiative, the Sustainability Accounting Standards Board (SASB), and Ipieca – and
other external research. We also engaged internal and external stakeholders to
gather data on our community impacts and potential impacts on stakeholders. We
analyzed peer and industry reporting, regulations, and media in order to provide
data-driven insights into strategic, regulatory, and reputational risks and
opportunities for ExxonMobil.

We carefully reviewed these inputs in order to select our topics. Our Global
Operations and Sustainability leadership reviewed and validated the results of this
topic selection process and supported alignment with our Sustainability Focus
Areas.

Stakeholder engagement
We work to foster mutual understanding, trust, and cooperation with stakeholder
groups on sustainability topics. We interact with these groups through community
meetings, digital and social media, corporate publications, and one-on-one
discussions. Open dialogue enables us to hear concerns, discuss approaches, and
share our plans for the purposes of gathering feedback.

Some of our primary stakeholder groups include:

• Academia

• Communities

• Customers

• Employees

• Governments

• Nongovernmental organizations

• Shareholders

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Our-approach-to-sustainability/Application… 2/8
5/6/24, 2:45 PM Application | ExxonMobil

• Suppliers

• Trade associations and industry groups

We tailor our engagement approaches to best understand stakeholders’ views. We

engage on topics such as technical projects, potential sustainability impacts,
community concerns, and public policy development. We host sessions to share
information on project updates, market-based approaches to sustainability matters,
policy insights, and updates on the company’s safety, environmental, and human
rights practices. We also meet one-on-one with many stakeholders as part of
ongoing business relationships.

Engaging with shareholders

Ongoing engagement with our shareholders is vitally important as we seek to
understand their diverse perspectives and keep them informed about our business.
We engage with shareholders or their proxies on a range of issues throughout the
year, including with institutional investors, retail shareholders, and pension funds.
We also interact with a variety of outside groups, including nongovernmental
organizations, financial analysts, industry thought leaders, financial rating firms,
ESG rating firms, proxy advisors, and activists. We do this through individual or
group meetings, Investor Day presentations, quarterly earnings calls, our Annual
Shareholder Meeting, investor conferences, spotlight events, stakeholder outreach,
and individualized, personal communications. Where possible, we reach out to
institutional investors, asset management teams and their stewardship teams to
make sure we correctly understand how they view our business in the context of
their fiduciary duties to their clients.

Our engagements include a range of ExxonMobil participants, including our non-

employee directors, our chairman and CEO, our CFO, our management committee,
other senior leadership, and our leading subject matter experts from across the
company.

Additionally, the Nominating and Governance Committee has established

procedures for shareholders and other interested parties to communicate with
Board members. Individuals can email our non-employee directors through the
Corporate Governance page of our website. All communications are recorded by
an ExxonMobil assistant secretary or designated staff member and forwarded to
the appropriate director or directors, or otherwise handled as the Nominating and
Governance Committee has directed.

Since 2017, we have increased our engagements on ESG issues with institutional
investors, pension funds and labor, religious, and nongovernmental organizations
by 88%. In 2022, our engagement reached shareholders representing 42% of total
shares outstanding, or 69% of institutional shareholdings. These shareholder
engagements can often address areas of interest without the need for formal
shareholder proposals at the annual shareholders meeting.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Our-approach-to-sustainability/Application… 3/8
5/6/24, 2:45 PM Application | ExxonMobil

Every year, shareholders or their proxies may submit proposals regarding

operations or governance. Company management and the Board consider each
proposal, and management seeks a dialogue with the proposal sponsor. When
speaking with shareholders, we actively listen and, where possible, find common
ground, potential for improvement, and a better understanding of the issues raised.
More information can be found in ExxonMobil’s 2023 Proxy Statement.

At the 2023 annual meeting, shareholders owning approximately 3.4 billion

outstanding shares, or more than 83%, were represented. In 2023, shareholders
voted on 16 issues, including 12 shareholder proposals. More information on the
voting outcomes can be found in the 2023 proxy voting results.

Corporate governance
2023 Proxy Statement
2023 Proxy Results

Engaging with Governments

Policy decisions made at all levels of government can have significant effects on our
current and future operations, and we actively participate in discussions around the
world to support policies that promote economic growth, stable investment for
long-term business viability, and the development and acceleration of lower-
emission alternatives.

We focus on practical policy solutions that recognize the increasing global need for
affordable and reliable energy while enabling scalable development and deployment
of lower- and zero- greenhouse gas emission technologies.

Durable and predictable market-driven policies can further encourage these

developments and increase investments in lower-emission technologies to help
achieve the Paris Agreement goals at the lowest cost to society.

ExxonMobil’s positions on climate, including its Scope 1 and 2 net-zero 2050

ambition from operated assets, and other key issues are available on our website
and in our Advancing Climate Solutions Report, along with our annual proxy
statement, press releases, and the Exxchange, our online advocacy hub. Our
lobbying and political contributions are aligned with these positions.

Positions and principles

Climate Lobbying Report
Advancing Climate Solutions Report
Proxy Statement
Press releases
Exxchange

U.S. lobbying expenses

We undertake lobbying to advocate positions on issues that affect the company,
the energy industry, and competitive free markets. These efforts are supported by a

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Our-approach-to-sustainability/Application… 4/8
5/6/24, 2:45 PM Application | ExxonMobil

rigorous process to determine which public policy issues are of greatest

importance to our business.

Our Report on Lobbying lists all U.S. organizations of which we or our affiliates are
members, as well as membership fees and portions used for lobbying. The report
also includes an accounting of the company’s direct and grassroots lobbying.

We fully comply with federal and state regulations by reporting federal lobbying to
the U.S. Congress and state-level lobbying to appropriate entities, as required. We
also publicly report, on a quarterly basis, our federal lobbying expenses and the
specific issues lobbied. The total figure reported in our public Lobbying Disclosure
Act filings includes expenses associated with the costs of employee federal
lobbying, as well as those portions of payments to trade associations, coalitions,
and think tanks spent on federal lobbying.

This process, along with the oversight of our lobbying and political engagement,
can be found on our website.

ExxonMobil report on lobbying activities

2022 Lobbying Report

Political contributions
The Board of Directors has authorized ExxonMobil to make political contributions
to candidate committees and other political organizations as permitted by
applicable laws. The Board annually reviews our political contributions, as well as
contributions from the company-sponsored Political Action Committee (PAC).
Internal audits of the corporation’s public and government affairs activities routinely
verify contribution amounts.

As a U.S. federal contractor, ExxonMobil has not used corporate treasury funds to
support any federal candidates, national political parties, or other political
committees, including Super Political Action Committees. ExxonMobil has chosen
not to use treasury funds or PAC funds for direct independent political
expenditures at the federal level, including electioneering2 communications.

Eligible employees and shareholders may participate in the U.S. political process by
contributing to a voluntary, company-sponsored, federal PAC. ExxonMobil reports
PAC contributions to the U.S. Federal Election Commission every month.

Political contributions

Transparency in payments to governments

We believe that disclosing relevant payments to governments is an important tool to
reduce corruption, improve government accountability and promote greater
economic stability worldwide. We consider the most successful transparency
initiatives to be those that:

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Our-approach-to-sustainability/Application… 5/8
5/6/24, 2:45 PM Application | ExxonMobil

• Apply to all foreign, domestic, and state-owned companies.

• Protect proprietary information to promote commercial competitiveness.

• Comply with international trade conventions and treaties.

• Do not violate host government laws or contractual obligations.

FOOTNOTES:

1. https://www.ipieca.org.

2. “Electioneering communication” is the standard terminology used by the

Federal Election Committee and also used in our Report on Lobbying. It
includes any communication that refers to a clearly identified federal
candidate, is publicly distributed within 30 days of a primary or 60 days of a
general election and is targeted to the relevant electorate.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Our-approach-to-sustainability/Application… 6/8
5/6/24, 2:45 PM Application | ExxonMobil

Our approach to sustainability

Integrating sustainability into what we do

Leadership

Application

Performance

Sustainability at ExxonMobil
Our approach to sustainability

Progressing environmental initiatives

Creating sustainable solutions

Engaging communities and our supply chain

Caring for our workforce

Build your own report

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Our-approach-to-sustainability/Application… 7/8
5/6/24, 2:45 PM Application | ExxonMobil

Click here to build your own report 

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Our-approach-to-sustainability/Application… 8/8
5/6/24, 2:46 PM Performance | ExxonMobil

Sustainability

Performance

Report
Jan. 8, 2024

We have built an organizational and governance structure around our focus areas
to ensure top-to-bottom and bottom-to-top alignment. Our objectives and
strategies ensure a consistent approach across the company, while empowering
our business lines to take action and advance our sustainability priorities.

Lloyd’s Register Quality Assurance Limited provided reasonable-level assurance for

our processes for reporting the safety, health, and environment (SHE) Ipieca core
reporting elements used in our 2023 sustainability reporting.

Communicating progress
ExxonMobil publishes several comprehensive reports annually to provide insights
into how we create value through our integrated businesses and how we manage
associated risks, opportunities, and impacts.

• Advancing Climate Solutions Report – outlines our work toward a lower-

emission future.

• Global Outlook – our view of global energy demand and supply, which form
the basis for our long-term business strategies.

• Annual Report – provides information on our prior-year operating and

financial performance while highlighting our advantaged portfolio and
competitive strengths in technology, scale, integration, functional excellence,
and people that enable us to create value.

• Sustainability Report – details our approach to managing sustainability-

related topics across our operations and describes our performance in these
areas.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Our-approach-to-sustainability/Performan… 1/4
5/6/24, 2:46 PM Performance | ExxonMobil

Supporting the United Nations Sustainable Development

Goals
The United Nations has adopted the Sustainable Development Goals (SDGs) to
achieve progress on global economic, social, and environmental challenges.
Although the goals are directed at governments, the private sector and civil society
play an important role in supporting national plans, and we support governments’
efforts to meet the SDGs.

Our corporate strategy directly supports progress toward SDG 7, “Affordable and
Clean Energy.” As we describe in our Global Outlook, energy use and economic
development are inseparable. Affordable and reliable energy is at the core of every
key measure of human development – elevating living standards, life expectancy,
education, and income per person. Yet for billions of people, modern living
conditions are still far out of reach. Where there is energy poverty, there is
pervasive, generational, economic poverty. And where energy availability rises, living
standards rise as well.

As we continue to help supply this energy, we also support progress toward SDG
13, “Climate Action.” This is the other half of the “and” equation, as we work to
provide solutions that aim to reduce greenhouse gas emissions across our
operated assets, help companies reduce their emissions, and develop and deploy
scalable technologies to help decarbonize high-emitting industrial sectors. These
actions support our 2030 greenhouse gas emission-reduction plans and our
ambition to achieve net-zero operated Scope 1 and 2 emissions by 2050. Our
efforts are supported by our plans to pursue more than $20 billion in lower-
emission investments from 2022 through 2027. A significant share is focused on
scaling up carbon capture and storage, hydrogen, lithium, and biofuels
opportunities that underpin our Low Carbon Solutions business.

The ExxonMobil Product Solutions portfolio also supports progress toward SDG
12, ”Responsible Consumption and Production.” This business provides materials
used in the production of solutions for health care and medical, agricultural, food
and beverage, and other applications. We are advancing infrastructure and
technology for collecting, sorting, and processing discarded plastics, which
includes our plans to build approximately 1 billion pounds of annual advanced
recycling capacity by year-end 2026, across multiple sites. Advanced recycling
enables a substantially broader range of plastic waste to be recycled back into
high-value raw materials versus conventional recycling.

U.N. Sustainable Development Goals

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Our-approach-to-sustainability/Performan… 2/4
5/6/24, 2:46 PM Performance | ExxonMobil

Our approach to sustainability

Integrating sustainability into what we do

Leadership

Application

Performance

Sustainability at ExxonMobil
Our approach to sustainability

Progressing environmental initiatives

Creating sustainable solutions

Engaging communities and our supply chain

Caring for our workforce

Build your own report

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Our-approach-to-sustainability/Performan… 3/4
5/6/24, 2:46 PM Performance | ExxonMobil

Click here to build your own report 

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Our-approach-to-sustainability/Performan… 4/4
5/6/24, 2:44 PM Progressing environmental initiatives | ExxonMobil

Progressing environmental initiatives

Our approach
Our diverse business portfolio includes projects in remote and sensitive
environments, such as deep water and areas of high biodiversity.

Our environmental management approach is guided by an understanding of the

potential environmental and socioeconomic impacts of our operations and a
commitment to develop, maintain, and operate projects responsibly, using
appropriate standards that enable us to Protect Tomorrow. Today.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Progressing-environmental-initiatives?dis… 1/5
5/6/24, 2:44 PM Progressing environmental initiatives | ExxonMobil

Managing environmental
performance and compliance
Protect Tomorrow. Today. is our guiding
principle, focusing our efforts on the need to
protect the environment where we operate and
support the social and economic needs of the
communities in which we operate, today and for
future generations.

Caring for land and

biodiversity
At ExxonMobil, Care is a core value. We aim to
contribute to the well-being of the communities
and environment where we operate, and the way
we manage land and habitats, and the
biodiversity within them, is critically important to
this objective.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Progressing-environmental-initiatives?dis… 2/5
5/6/24, 2:44 PM Progressing environmental initiatives | ExxonMobil

Conserving water resources

Water is an essential resource for the world’s
ecosystems, human development, and life, and
demand for this finite resource continues to
grow.

Improving air quality

We recognize the importance of clean air to our
communities, and our emission-reduction
initiatives include those that aim to reduce
nitrogen oxides, sulfur oxides, and volatile
organic compounds at our operated assets.

Minimizing operational waste

Everyone at ExxonMobil plays a role in reducing
operational waste. Our use of a “waste
mitigation hierarchy” prioritizes waste avoidance
when feasible, and when waste is unavoidable,
we work to reduce, recover, or reuse it whenever
possible.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Progressing-environmental-initiatives?dis… 3/5
5/6/24, 2:44 PM Progressing environmental initiatives | ExxonMobil

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Progressing-environmental-initiatives?dis… 4/5
5/6/24, 2:44 PM Progressing environmental initiatives | ExxonMobil

Executive Summary

Governance and executive compensation

Metrics and data

Content index

Build your own report

Click here to build your report 

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Progressing-environmental-initiatives?dis… 5/5
5/6/24, 2:46 PM Managing environmental performance and compliance | ExxonMobil

Sustainability

Managing environmental performance and

compliance

Report
Jan. 8, 2024

Protect Tomorrow. Today. is our guiding principle, focusing our efforts on the need
to protect the environment where we operate and support the social and
economic needs of the communities in which we operate, today and for future
generations. This principle embodies the environmental expectations and globally
accepted industry practices that guide our long-term and day-to-day operations.

Approach
We aim to develop, maintain, and operate assets responsibly as we work to meet
society’s evolving needs. We apply our environmental management systems across
our operations as we strive for leading environmental performance.

We recognize the environmental risks associated with our industry and evaluate
potential and actual risks at each stage of a project, including early planning stages,
to mitigate potential environmental impacts.

Our operations often involve work in remote and sensitive environments, such as
deep water and areas of high biodiversity. Our Environment Policy, housed in our
Standards of Business Conduct, details our commitment to comply with all
applicable environmental laws and regulations. Where applicable laws and
regulations do not exist, we apply Project Environmental Standards and other
standards designed to minimize risks to the environment and society.

Our environmental focus areas are:

• Advancing climate solutions

• Caring for land and biodiversity

• Conserving water resources

• Improving air quality

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Progressing-environmental-initiatives/Man… 1/5
5/6/24, 2:46 PM Managing environmental performance and compliance | ExxonMobil

• Minimizing operational waste

Management and application

Our Operations Integrity Management System (OIMS) framework conforms to
recognized environmental standards, including International Organization for
Standardization (ISO) 14001 environmental management system standards and
requirements of American Chemistry Council Responsible Care®. Our global
network of more than 20 lubricant plants is ISO 14001-certified, confirming OIMS
effectiveness in managing potential environmental impacts and compliance
obligations.

Successful project execution requires deep insight into the environmental and
socioeconomic characteristics of the areas where we operate. We typically perform
an Environmental, Socioeconomic, and Health Impact Assessment for major capital
projects. We use our Environmental Aspects Guide to identify and evaluate
environmental and socioeconomic risks and impacts throughout the life of each site
or project. Aspects covered may include water use, biodiversity, invasive species, air
emissions and water discharges, seismic and other sound, land, traffic, and other
topics. Then we develop management plans to avoid, reduce, or address any
issues. We integrate stakeholder feedback as part of our assessments, including
those of local communities and stakeholders.

Reporting directly to our Chairman and CEO, the Global Operations and
Sustainability Vice President collaborates with the Corporate Strategic Planning
Vice President and the business lines to develop sustainability-related goals and
supports the integration of those goals into operating plans. Stewardship of
sustainability-related activities to the Chairman and Management Committee occurs
quarterly. Within Global Operations and Sustainability, the Sustainability Director
manages the focus areas, including our Environmental Management System, and
subject matter experts are responsible for identifying opportunities.

Training on these processes and environmental topics related to every aspect of

our business are offered as part of our ongoing employee development efforts,
with more than 7,000 courses completed since 2022.

International Organization for Standardization (ISO) 14001

American Chemistry Council Responsible Care®
Environmental Aspects Guide
Performance
The metrics we report each year in our performance table were informed by the
reporting guidelines and indicators of Ipieca, the American Petroleum Institute
(API), and the International Association of Oil & Gas Producers
(IOGP) Sustainability Reporting Guidance for the Oil and Gas Industry (4th edition,
2020, revised February 2023), and the Global Reporting Initiative (GRI).

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Progressing-environmental-initiatives/Man… 2/5
5/6/24, 2:46 PM Managing environmental performance and compliance | ExxonMobil

Everywhere we operate, we strive to

deliver leading environmental
performance, with a focus on minimizing
environmental impacts through a
process of continuous improvement. We
apply international standards and
practices that often go beyond local
compliance requirements.

For example, the Liza Unity floating

production storage and offloading
(FPSO) unit, built for our affiliate’s operations in the Stabroek Block in Guyana, was
the first FPSO in the world to be awarded the SUSTAIN-1 notation by the
classification society, American Bureau of Shipping (ABS). Building on this
accomplishment, the Prosperity FPSO, starting up in 2023 with an initial production
capacity of around 220,000 barrels of oil per day, has received the same
certification.

To be awarded the SUSTAIN-1 notation, a vessel must meet the relevant

requirements of the ABS Guide for Sustainability Notations, which reflect certain
SDGs related to vessel/offshore asset design, outfitting, and layout. This guide
covers sustainability aspects of the asset design, outfitting and layout (including
pollution), energy use, recycling, coastal and marine ecosystems, and human-
centered design. This notation represents an important example of our efforts to
provide safe and responsible energy to society.

SUSTAIN-1 notation
American Bureau of Shipping
ABS Guide for Sustainability Notation

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Progressing-environmental-initiatives/Man… 3/5
5/6/24, 2:46 PM Managing environmental performance and compliance | ExxonMobil

Progressing environmental
initiatives
Managing environmental performance and compliance

Caring for land and biodiversity

Conserving water resources

Improving air quality

Minimizing operational waste

Sustainability at ExxonMobil
Our approach to sustainability

Progressing environmental initiatives

Creating sustainable solutions

Engaging communities and our supply chain

Caring for our workforce

Build your own report

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Progressing-environmental-initiatives/Man… 4/5
5/6/24, 2:46 PM Managing environmental performance and compliance | ExxonMobil

Click here to build your own report 

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Progressing-environmental-initiatives/Man… 5/5
5/6/24, 2:46 PM Caring for land and biodiversity | ExxonMobil

Sustainability

Caring for land and biodiversity

Report
Jan. 8, 2024

United Nations Sustainable Development Goals related to this content.

At ExxonMobil, Care is a core value. We aim to contribute to the well-being of the

communities and environment where we operate, and the way we manage land
and habitats, and the biodiversity within them, is critically important to this objective.
We work hard to reduce potential impacts to ecosystems and to the value they
provide. Our land and habitat management plans are designed to eliminate, reduce,
or mitigate risks to biodiversity, with protective measures specific to the location
and scale of our operations.

Approach
We operate in locations with a broad range of environmental and socioeconomic
conditions, and we employ a comprehensive process to understand the connection
between our activities and the environments and communities in which we
operate. Our environmental management system helps us to identify, assess,
mitigate, and monitor potential impacts, including any effects on biodiversity and
the function of ecosystems in the broader environment. Protect Tomorrow. Today.
is our guiding principle in this area and our work is also informed by the United
Nations Sustainable Development Goals.

Using our Operational Integrity Management System and Environmental Aspects

Guide, we work to understand and measure the benefits gained from the
biodiversity of an environment. We operate in areas that include forest, grassland,
aquatic, and marine ecosystems, and these ecosystems, functioning in a healthy
relationship, provide benefits (i.e., natural services) like pollination of crops, food,
clean air, and physical and spiritual well-being to humans and animals.

Ongoing formal and informal stakeholder engagement with academia, industry,

community leaders, and others further helps us identify relevant biodiversity and
ecosystem services for consideration in our project design and operational

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Progressing-environmental-initiatives/Cari… 1/9
5/6/24, 2:46 PM Caring for land and biodiversity | ExxonMobil

practices. Using the results of these engagements and assessments, we apply an

approach based on the value of ecosystems as assessed by socioeconomic and
environmental factors.

In Papua New Guinea, for example, ExxonMobil PNG Limited’s (EMPNG)

Biodiversity Strategy supports the country’s National Biodiversity Strategy and
Action Plan and the Policy on Protected Areas. Following extensive consultation
with stakeholders, including the local government, EMPNG developed a
Biodiversity Strategy and implementation plan (the Biodiversity Implementation
and Monitoring Program) with the objective of safeguarding the country’s rich
environment within the PNG LNG project Upstream area.1 This process has
contributed to a deeper understanding of the region’s unique biodiversity, including
the discovery of previously unknown species of insects and plants, one of which is
a plant species that has been named Distrianthes exxonmobilensis in recognition of
EMPNG’s efforts.2, 3

We have also joined with others in our industry in supporting the aims of the Post-
2020 Global Biodiversity Framework, as Ipieca communicated at the United
Nations Convention of Biological Diversity COP15 event and in a statement in late
2022.

Management and application

For major projects, we use our Environmental, Social, and Health Impact
Assessment process to identify and evaluate environmental, social, and health risks.
We also use an environmental business planning process to identify, assess, and
establish solutions to environmental issues (e.g., potential mitigation measures)
throughout the life of the asset.

In areas of high biodiversity like critical habitats,4 we follow the Cross Sector
Biodiversity Initiative’s mitigation hierarchy, a best-practice decision-making process
to help avoid, reduce, restore, and offset impacts to biodiversity. As part of this
mitigation process, our engineering teams consider integrating nature-based
solutions, including remediation and restoration, into design decisions throughout
the asset life cycle.

Land and habitat management is emphasized in training. For example, in 2022, we

launched new sustainability online training courses available to all employees,
including a module to reinforce the importance of ExxonMobil's sustainability focus
areas, such as land and habitat management and other topics. The training
included our approach, available tools, and active programs. Through August
2023, more than 7,000 employees have completed this module. As another
example, land and habitat management is included in environmental management
training for selected professional employees.

Project Environmental Standards

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Progressing-environmental-initiatives/Cari… 2/9
 5/6/24, 2:46 PM Caring for land and biodiversity | ExxonMobil

We have Project Environmental Standards for Land Use and Marine Sound, a
system of standards that inform project concept selection and facility design. These
standards enable us to:

• Avoid or reduce adverse environmental and socioeconomic impacts related

to the permanent or temporary use of land, including land within critical
habitat or with high ecosystem value.

• Identify, assess, and manage risks associated with marine sound-producing

activities and to consistently implement mitigation in a structured, effective
manner.

Operations near protected areas

We routinely screen the locations of our major operating facilities using the World Database of Protected
Areas.5 We estimate that in early 2022, nearly 34% of major operating sites6 were within 5 kilometers of
designated terrestrial environmentally protected areas and 10 kilometers of designated marine protected areas.
We factor this information into our facility environmental business plans as we continuously work to enhance
protective measures and emergency response plans.

The table below provides details of the major operating sites within 5 kilometers of International Union for
Conservation of Nature (IUCN) Category I and II protected areas (strict nature reserves, wilderness areas, and
national parks), Ramsar sites (wetlands of international importance), and UNESCO World Heritage Sites (natural
and cultural).

Major
Protected area name Designation / type Location Facility type Country
operating site
Long Island Mornington Peninsula UNESCO – Man Within 1 Fractionation plant Australia
Point and Western Port and the Biosphere km and storage
Biosphere Reserve Programme (MAB),
Ramsar Site

Fawley Solent and Southampton Ramsar Site Within 1 Petroleum refinery United
Water km and chemical plant Kingdom

Point Jerome Marais Vernier et Vallée de Ramsar Site Within 1 Petroleum refinery France
Gravenchon la Risle maritime km and lube oil blending
plant

Notre Dame Marais Vernier et Vallée de Ramsar Site Within 5 Chemical plant France
Gravenchon la Risle maritime km

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Progressing-environmental-initiatives/Cari… 3/9
 5/6/24, 2:46 PM Caring for land and biodiversity | ExxonMobil

Fife Ethylene Firth of Forth Ramsar Site Within 5 Chemical plant United
Plant km Kingdom

Barenburg Diepholzer Ramsar Site Within 5 Oil and gas Germany

Operations Moorniederung km processing

Vallejo El Tepeyac IUCN Cat II Within 5 Lube oil blending Mexico

km plant

ExxonMobil supports land management programs that enhance wildlife habitats

and provide environmental education to local communities.

In North America, we are a charter member of the Wildlife Habitat Council (WHC)
and collaborate with the council to certify conservation programs – 14 company
sites involving a total of 32 habitat, species, and education projects as of early 2023.

In addition, we work with local education and community programs to promote

native species and support biological field data collection. In Papua New Guinea,
for example, the New Guinea Binatang Research Centre is working with
ExxonMobil to engage local communities and encourage landowner participation in
monitoring of vegetation regeneration and biodiversity surveys.

We also contribute to research aimed at improving biodiversity management. For

example, our collaboration with NatureServe uses science and data to facilitate
biodiversity conservation, helping establish a global data and indicator library that
can be used to improve biodiversity assessments and conservation planning. The
library tracks progress toward environmental stewardship goals and makes
biodiversity data globally accessible.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Progressing-environmental-initiatives/Cari… 4/9
5/6/24, 2:46 PM Caring for land and biodiversity | ExxonMobil

*Includes only WHC qualifying projects. Qualifying projects must: 1) Be locally appropriate, 2) Exceed any relevant regulatory

requirements, 3) Have a conservation or conservation education objective, 4) Provide conservation or conservation education value,

and 5) Have documented measurable outcomes.

Source: Wildlife Habitat Council on behalf of ExxonMobil

Performance
At sites around the world, we collaborate with third parties to share best practices
and contribute to a shared understanding of complex ecosystems in support of our
remediation efforts.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Progressing-environmental-initiatives/Cari… 5/9
5/6/24, 2:46 PM Caring for land and biodiversity | ExxonMobil

For example, we are piloting native grassland restoration in the Permian Basin to
support local ecosystems and biodiversity in degraded lands. Using non-irrigated
and non-fertilized native grass mixes, we are seeking to better understand the
impacts of microbial communities in the soil on the resilience of the land and its
ability to absorb and hold carbon.

ExxonMobil Research Qatar in Doha is working with QatarEnergy LNG, Qatar

University, and the Ministry of Environment and Climate Change to identify,
characterize, and implement nature-based solutions – actions to help protect,
manage, and restore ecosystems to support both nature and people. One such
project seeks to document the potential of mangrove ecosystems as a nature-
based solution to provide co-benefits that include supporting biodiversity, stabilizing
shorelines, and sequestering carbon. Another project is assessing the use of a
constructed wetland to treat industrial wastewater and facilitate water reuse.

Within our operations, we strive to enhance our conservation efforts through

advanced monitoring and mitigation techniques in consultation with local experts.
At our refinery in Joliet, Illinois, we monitor and help to control invasive species like
phragmites and European milfoil in connected wetlands, informed by the results of
a baseline fish population survey.

And our work is being recognized. In 2022, the team at our salt dome facility in
Sorrento, Louisiana, earned WHC Certified Silver recognition for biodiversity and
conservation efforts that included:

• Removing invasive trees, in support of the Louisiana Department of Wildlife

and Fisheries’ goal.

• Surveying the local tree population and recording growth data.

• Planting native trees beneficial to area wildlife.

• Monitoring the impact of removing invasive species on wildlife, including

birds and reptiles.

• Working with local Audubon societies and ecologists to improve habitats for
wildlife, including installing basking rocks and building bird and bat houses.

We look for opportunities for remediation and conservation to bring new life to an
area. For example, at a former waste oil site in New Hampshire, we helped establish
a multi-year conservation effort to rehabilitate the habitat in support of a nearby
wildlife corridor. We worked with other stakeholders to develop a native wildflower
meadow for native pollinators, monarch butterflies, other local fauna. We also
restored more than 440 million gallons of groundwater to potable standards since
2013 through our work on aquifer restoration. These efforts were recognized by
the Wildlife Habitat Council and the National Groundwater Association, and the
work continues to this day.
FOOTNOTES:

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Progressing-environmental-initiatives/Cari… 6/9
5/6/24, 2:46 PM Caring for land and biodiversity | ExxonMobil

1. The Upstream area covers the Hela, Southern Highlands, Western and Gulf
provinces of Papua New Guinea.

2. Takeuchi, Wayne (2015), Distrianthes exxonmobilensis (Loranthaceae), a

new species in a formerly monotypic genus from Papua New Guinea,
Phytotaxa: Vol. 207 (2015).

3. ExxonMobil’s Biodiversity Study & Conservation - Energy Factor PNG.

4. Critical habitats, as described by the International Finance Corporation (IFC)

Performance Standard 6 (PS6) on Biodiversity Conservation and Sustainable
Management of Living Natural Resources (IFC, 2012a), are areas with high
biodiversity value, including (i) habitat of significant importance to Critically
Endangered and/or Endangered species; (ii) habitat of significant importance
to endemic and/or restricted-range species; (iii) habitat supporting globally
significant concentrations of migratory species and/or congregatory species;
(iv) highly threatened and/or unique ecosystems; and/or (v) areas associated
with key evolutionary processes.

5. UNEP-WCMC and IUCN (2021), Protected Planet: The World Database on

Protected Areas (WDPA), July 2023, Cambridge, UK: UNEP-WCMC and
IUCN. Available at: www.protectedplanet.net.

6. Major Operating Sites are defined in Ipieca/API/IOGP SR Guidance as

“operated assets in operational or development phase to include onshore
and offshore, oil and gas production facilities, refineries and manufacturing
sites, upstream central facilities, and gas plants.” (Sustainability Reporting
Guidance for the Oil and Gas Industry (4th edition, 2020, revised February
2023) developed by Ipieca, the American Petroleum Institute and the
International Association of Oil & Gas Producers).

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Progressing-environmental-initiatives/Cari… 7/9
5/6/24, 2:46 PM Caring for land and biodiversity | ExxonMobil

Progressing environmental
initiatives
Managing environmental performance and compliance

Caring for land and biodiversity

Conserving water resources

Improving air quality

Minimizing operational waste

Sustainability at ExxonMobil
Our approach to sustainability

Progressing environmental initiatives

Creating sustainable solutions

Engaging communities and our supply chain

Caring for our workforce

Build your own report

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Progressing-environmental-initiatives/Cari… 8/9
5/6/24, 2:46 PM Caring for land and biodiversity | ExxonMobil

Click here to build your own report 

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Progressing-environmental-initiatives/Cari… 9/9
5/6/24, 2:46 PM Conserving water resources | ExxonMobil

Sustainability

Conserving water resources

Report
Jan. 8, 2024

Water is an essential resource for the world’s ecosystems, human development,

and life, and demand for this finite resource continues to grow. We work to
understand water stress and potential impacts of our operations at the local level to
better manage water resources used in our operations and help protect the health
of people and the environment.

United Nations Sustainable Development Goals related to this content.

Our priority in water stewardship is the quality and supply of freshwater in the
communities and environments where we operate. Water challenges have the
potential to pose business continuity and other risks, and resilient water systems
are needed for our operations as we work to meet society’s evolving needs. We
collaborate with our stakeholders to better understand water risks in the areas
where we operate, and we consider the insights we gain in our project design and
operational practices.

Approach
We strive to be a leader in safeguarding water resources while taking actions that
help preserve water quality and conserve water supplies in the communities where
we operate. We focus our efforts on prudently managing and monitoring the water
we use, including freshwater used in our operations, wastewater treatment and
discharge, and recycling produced water (i.e., water that comes to the surface
during oil and gas production) to conserve freshwater consumption in industrial
processes.

Through our water stewardship efforts, we seek to:

• Help protect human health and the environment.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Progressing-environmental-initiatives/Con… 1/7
5/6/24, 2:46 PM Conserving water resources | ExxonMobil

• Consider local water needs when addressing operational requirements.

• Continuously improve capabilities and performance.

• Engage stakeholders in development of water solutions.

Objectives
Our team works to minimize the potential impact of our operations, especially in
areas of water stress, as defined by measuring the ratio of total water withdrawals
to available renewable water supplies. We aim to integrate this understanding into
operational practices and project design, which includes adding technology
applications focused on water management.

Management and application

We use water in our operations, withdrawing or purchasing fresh, brackish, and
saline water for upstream exploration and production, downstream refining, and
chemicals production. Some of that water is treated and returned to a local water
body, some is consumed in our manufacturing processes, and some is used for
other purposes (e.g., employee health and hygiene). When sourcing water for
operations, we look for ways to reduce the impact of withdrawal, consumption,
and discharge, considering local needs and alternative sources of supply.

Assessing and managing water risk

When sourcing water for our operations, ExxonMobil identifies and manages risks
related to supply and quality. Water scarcity poses several potential risks for our
industry and others, including increased competition for water resources, reduced
production or business interruption, and increased costs.

We use a combination of tools to assess water risks and scarcity, including the
World Resources Institute AqueductTM Water Risk Atlas (WRI water risk tool) and
local assessments. We estimate that approximately 9% of the freshwater volume
that we withdraw for our operating sites and projects is from areas that are water
stressed, based on analysis using the WRI water risk tool. Similarly, 20% of these
locations are in areas that are water stressed.1

Research and operational analyses further enable the continuous improvement of

the processes and technologies we use to manage water risk. Our Environmental
Aspects Guide informs our efforts to identify and evaluate risks and impacts
throughout the life of an asset or project, and we are currently evaluating an
additional Water Aspect Assessment tool that we piloted in 2022 to bring
enhanced focus on water risks in our Environmental Aspect Assessments.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Progressing-environmental-initiatives/Con… 2/7
5/6/24, 2:46 PM Conserving water resources | ExxonMobil

We consider multiple factors in determining our approach for a given process or

site, including local water availability, quality, and environmental impact and engage
formally and informally with stakeholders and governments as part of this process.
For selected sites in areas that are water stressed, we are working to assess actual
costs, as well as potential trade-offs, such as varying operational efficiencies,
increased energy use, or more concentrated waste streams.

In 2023, we worked with outside experts to begin an in-depth analysis of key

operating sites in areas of potential future water stress. At these sites and others,
we are developing thorough water balances to gain further clarity on our water
use and identify additional opportunities to improve water stewardship. This work
informs our ongoing efforts to develop comprehensive water roadmaps to reduce
freshwater intake for select major operated facilities, which we anticipate will be
complete by the end of 2024. We expect these roadmaps will be updated as
needed.2

Strategic collaborations
We collaborate with universities, governments, and other industry members to
manage risk and to study and improve water quality and treatment. Our engineers
and scientists assess new technologies to help manage water use and
treat wastewater streams, evaluate existing infrastructure, and develop strategies
to improve our sustainability performance.

We collaborate with multiple external researchers, including:

• The National Alliance for Water Innovation, headquartered at Lawrence

Berkeley National Laboratory, to develop advanced treatment technologies
for produced water desalination.

• The New Mexico Produced Water Research Consortium and Texas

Produced Water Consortium, to develop environmental, health, and safety
risk assessment frameworks for beneficial reuse of treated produced water.

• The Nanosystems Engineering Research Center for Nanotechnology

Enabled Water Treatment, to develop water treatment systems.

• The Texas Partnership for Forests and Water, a statewide collaborative led
by Texas A&M Forest Service that works to conserve and enhance forested
watersheds across the state.

SPOTLI GH T

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Progressing-environmental-initiatives/Con… 3/7
5/6/24, 2:46 PM Conserving water resources | ExxonMobil

Spotlight on the Permian Basin

In 2022, almost half of our net U.S. oil and
natural gas production came from the
Permian Basin. As we work to responsibly
develop our assets in the region, we are
working to safeguard the availability and
quality of its water sources.

To minimize withdrawal from natural

water resources and mitigate risks from
water use in our operations, we seek to:

• Prioritize sourcing from recycled

produced water to conserve

resources of fresh and brackish water.

• Minimize “downhole” water disposal – that is, water discharged into

underground formations – through technology and operational

optimization.

• Maximize opportunities to reuse produced water, leveraging our

capabilities in risk management, research, and technology.

• Support local and regional water conservation efforts, such as the

National Fish and Wildlife Foundation’s Pecos Watershed Conservation

Initiative.

Implemented in 2021, our comprehensive water management roadmap for 10

years of Permian development identifies opportunities to reduce freshwater
intake, as well as manage disposal, and guides our efforts to achieve industry-
leading performance on water management. We expect this roadmap will be
updated as needed.3 In 2022, we sourced more than 130 million barrels of water
from recycled Permian produced water, comprising over half (64%) of our water
needs for hydraulic fracturing operations. The remaining water needed came
from brackish sources.

Additionally, we are increasingly using recycled produced water in our

operations, including the Fayetteville and Marcellus shale gas operations. All told,
we are working with industry members, technology solution providers,
researchers, and regulators through collaboration, technology, and operational
optimization to help improve industry water management in the Permian and
beyond.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Progressing-environmental-initiatives/Con… 4/7
5/6/24, 2:46 PM Conserving water resources | ExxonMobil

Performance
We have water management standards that establish requirements for water
sourcing and wastewater treatment. These Project Environmental Standards set
project requirements when a country has no water-use standards or less-stringent
standards than our own expectations. ExxonMobil’s overall water management
process is consistent with Ipieca’s Water Management Framework, which outlines
a risk-based, continuous improvement process for water management.

Site-specific strategies
We regularly review our water consumption and look for ways to use water more
efficiently. Our local water management programs are designed to address
potential water-related risks and include a review of freshwater consumption rates,
when relevant, to identify opportunities for improvement.

Informed by our Operations Integrity Management System (OIMS) framework

and Environmental Aspects Guide, we consider the unique traits of each asset and
location, including biodiversity and other environmental factors, to help us reduce
overall water use and impacts to freshwater-dependent ecosystems. Tactics for
managing water risks include water conservation technologies, use of alternative
sources, and recycling of municipal and industrial wastewater.

At the ExxonMobil Singapore facilities, most of the fresh water used by the site is
reclaimed treated wastewater, which reduces demand on local water supplies.
There are multiple wastewater treatment systems across the ExxonMobil Singapore
complex, including a membrane biological reactor that provides additional
opportunities for water reuse on site.

At our Baytown petrochemical complex in Texas, we have launched projects and

initiatives to address changes to our water supply, including investments in our
infrastructure to shift sourcing from the San Jacinto River to the saltier Trinity River
in support of the Houston Metro Area’s water management plans.4

Across our upstream portfolio, our well sites are designed and constructed to
promote well integrity and help protect the water table. Protective measures
include multiple layers of steel and cement casing to separate wells from aquifer
and to keep fluids in the pipe and out of the water table. In addition, hydraulic
fracturing completions are closely monitored to manage the pressures within the
well in accordance with design parameters.

FOOTNOTES:

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Progressing-environmental-initiatives/Con… 5/7
5/6/24, 2:46 PM Conserving water resources | ExxonMobil

1. ExxonMobil full-year 2022 performance data as of April 5, 2023, and World

Resources Institute AqueductTM Water Risk Atlas accessed on November 6,
2023. For more information on the tool, visit www.aqueduct.wri.org. We
define “water stressed” as high, extremely high, or arid stress levels identified
by this WRI tool and exclude sites that withdraw less than 0.5 MBBLS/year.

2. Roadmaps aim to identify opportunities for selected sites, which are subject
to change as a result of a number of factors, including the Company’s
planning process, supportive government policy, and/or technology
developments.

3. Roadmaps aim to identify opportunities for selected sites, which are subject
to change as a result of a number of factors, including the Company’s
planning process, supportive government policy, and/or technology
developments.

4. Texas Water Development Board, Region H Water Planning Group, 2021

Regional Water Management Plan Volume 1 Section 11.2.4, available at
www.twdb.texas.gov/waterplanning/rwp/plans/2021.

Progressing environmental
initiatives
Managing environmental performance and compliance

Caring for land and biodiversity

Conserving water resources

Improving air quality

Minimizing operational waste

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Progressing-environmental-initiatives/Con… 6/7
5/6/24, 2:46 PM Conserving water resources | ExxonMobil

Sustainability at ExxonMobil
Our approach to sustainability

Progressing environmental initiatives

Creating sustainable solutions

Engaging communities and our supply chain

Caring for our workforce

Build your own report

Click here to build your own report 

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Progressing-environmental-initiatives/Con… 7/7
5/6/24, 2:46 PM Improving air quality | ExxonMobil

Sustainability

Improving air quality

We recognize the importance of clean air to our communities,

and our emission-reduction initiatives include those that aim to
reduce nitrogen oxides, sulfur oxides, and volatile organic
compounds at our operated assets. From 2016 to 2022, total
reportable emissions of nitrogen oxides, sulfur oxides, and
volatile organic compounds decreased by approximately 23%
at operated assets.

Report
Jan. 8, 2024

United Nations Sustainable Development Goals related to this content.

Approach
Our environmental management approach includes our Environment Policy and the
procedures at our operational sites to identify and control air emissions. For new
projects, we apply our Project Environmental Standards, which guide our facility
designs and operations as we produce energy and products to meet society’s needs.

Our approach to air quality management includes:

• Understanding the composition and extent of our emissions.

• Meeting or exceeding environmental regulations.

• Reducing air emissions to minimize potential impacts on local communities.

• Monitoring the science and health standards related to air quality.

As part of our approach to improving air quality, we evaluate the potential impact of our
emissions to the communities where we operate. We use these insights as we consider
whether to advance appropriate capital projects and initiatives even as we work with
regulatory agencies to assess and address potential air quality issues.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Progressing-environmental-initiatives/Imp… 1/5
5/6/24, 2:46 PM Improving air quality | ExxonMobil

Management and application

Our corporate-wide initiatives to reduce greenhouse gas (GHG) emissions intensity
have the potential to further improve air quality by lowering non-GHG emissions.

We install controls at combustion sources to reduce nitrogen oxides emissions. In

addition, Imperial Oil Ltd.'s Canadian Sarnia and Nanticoke refineries and chemical
plants have developed emission reduction plans expected to reduce sulfur oxides
emissions by approximately 50% at Nanticoke and more than 90% at Sarnia by the end
of 2028.1 Our affiliate’s refinery in Antwerp, Belgium, changed the configuration of its
sulfur recovery unit in 2019 and reduced its sulfur oxides emissions by more than 50%.

Performance
From 2016 to 2022, total reportable emissions of volatile organic
compounds, sulfur oxides, and nitrogen oxides decreased by approximately
23% at operated assets. Operational throughput at ExxonMobil operated
sites decreased due to lower demand during the global pandemic. This had
a directional impact on air emissions. As throughput increased following the
pandemic, air emissions also increased, but at a lower than historical level as
a result of emission-reduction initiatives.

For historical data on ExxonMobil’s air emissions, please see the

performance data table 

Air emissions

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Progressing-environmental-initiatives/Imp… 2/5
5/6/24, 2:46 PM Improving air quality | ExxonMobil

0.5

NOx

0.4 SOx
VOC
metric tons
0.3

Air emissions from ExxonMobil operated assets only.

FOOTNOTE:

1. Versus the five-year average up to and including 2019. See Imperial 2022
Corporate Sustainability Report, page 11.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Progressing-environmental-initiatives/Imp… 3/5
5/6/24, 2:46 PM Improving air quality | ExxonMobil

Progressing environmental initiatives

Managing environmental performance and compliance

Caring for land and biodiversity

Conserving water resources

Improving air quality

Minimizing operational waste

Sustainability at ExxonMobil
Our approach to sustainability

Progressing environmental initiatives

Creating sustainable solutions

Engaging communities and our supply chain

Caring for our workforce

Build your own report

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Progressing-environmental-initiatives/Imp… 4/5
5/6/24, 2:46 PM Improving air quality | ExxonMobil

Click here to build your own report 

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Progressing-environmental-initiatives/Imp… 5/5
5/6/24, 2:46 PM Minimizing operational waste | ExxonMobil

Sustainability

Minimizing operational waste

Everyone at ExxonMobil plays a role in reducing

operational waste. Our use of a “waste mitigation
hierarchy” prioritizes waste avoidance when feasible, and
when waste is unavoidable, we work to reduce, recover, or
reuse it whenever possible.

We aim to dispose of waste only if other options have been

exhausted, and we have robust processes to select waste
sites that meet our high standards and expectations. Our
global network of lubricants blending and packaging plants
have a Zero Waste to Landfill Silver validation from
Underwriters Laboratories. We were the first petroleum
products company to receive this status by diverting from
local landfills over 90% of waste produced in our global
plant network.
Report
Jan. 8, 2024

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Progressing-environmental-initiatives/Mini… 1/8
5/6/24, 2:46 PM Minimizing operational waste | ExxonMobil

United Nations Sustainable Development Goals related to this content.

Approach
We are committed to the management and treatment of waste in a manner that
incorporates industry best practices. We work to avoid generating waste and take
a broad range of measures to mitigate and eliminate waste that is generated. These
measures include source reduction, reuse, recycling, reclamation, handling,
storage, transportation, as well as treatment and/or disposal of any remaining
waste in compliance with applicable regulations.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Progressing-environmental-initiatives/Mini… 2/8
 5/6/24, 2:46 PM Minimizing operational waste | ExxonMobil

Objectives
Our objective is to continuously look for ways to minimize waste through practices like process changes; raw
material changes; material handling, storage, and transportation; as well as treatment and/or disposal of any
remaining waste in compliance with applicable regulations. To do that, we utilize a waste mitigation hierarchy
that starts with waste avoidance.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Progressing-environmental-initiatives/Mini… 3/8
5/6/24, 2:46 PM Minimizing operational waste | ExxonMobil

Reduce / Recover / Reuse Avoid waste

Reduce / Recover / Reuse Systems are in place Facilities designed and operated to be efficient,
to separate oil from water and solids, so oil is and optimize materials and feedstocks.
recovered and water is reused. Where
practical, waste materials are collected and
sent for beneficial reuse where they can be
used to generate other sources of fuel.
Systems are in place to separate oil from water
and solids, so oil is recovered and water is
reused. Where practical, waste materials are
collected and sent for beneficial reuse where
they can be used to generate other sources of
fuel.

Recycle Treat
Management and application
We regularly review and improve methods for managing waste at our facilities and
the third-party waste management facilities we use. On-site waste personnel are
trained on effective waste controls, applicable regulations, and ExxonMobil
environmental practices. Corporate and regional staff provide technical guidance
on waste minimization and recycling opportunities and assess the environmental
risks of third-party waste facilities through a centralized program.

Project Waste Management Standard

Our Project Waste Management Standard informs project concept selection and
facility design to:

• Ensure that proper management, treatment, and disposal infrastructure is

available for all waste from project construction and operations.

• Reduce the quantity of and hazards associated with the waste generated
during the operation of new facilities.

• Promote enhanced waste minimization and recycling/reuse throughout the

asset life cycle.

Waste site audit program

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Progressing-environmental-initiatives/Mini… 4/8
5/6/24, 2:46 PM Minimizing operational waste | ExxonMobil

ExxonMobil is committed to using third-party waste facilities that employ industry

best practices for waste management and environmental protection. To do this, we
have an audit program for evaluating those facilities for compliance with our
program requirements. This program identifies waste facilities in most countries
where ExxonMobil operates, and these facilities are reviewed by internal experts or
assessed by independent contractors. Areas of evaluation include the waste
facility’s design and operations, regulatory compliance history, management
systems, site geology and groundwater, safety, community relations, security, and
financial capacity. In 2022, 75% of the waste from our operated assets and
remediation activities were managed by third-party facilities assessed by
independent evaluators, and we expect this number to increase.

Zero Waste to Landfill

In 2018, ExxonMobil’s global network of lubricants blending and packaging plants,
which manufacture all Mobil-branded lubricant products, earned a Zero Waste to
Landfill Silver validation from Underwriters Laboratories. ExxonMobil is the first
petroleum products company to achieve this validation, renewed annually through
2022.

More than 90% of the waste produced in this global plant network is diverted from
landfill through our efforts to reduce, reuse, and recycle. Solutions as simple as
repair and reuse of container pallets and as complex as an advanced distillation
process to recover laboratory solvent have enabled us to redeploy to new,
productive uses more than 50,000 tons of waste produced per year.

Supply chain waste management

We aim to work with our suppliers to identify ways to reduce environmental
impacts throughout the supply chain. Our global sourcing strategy development
process encourages the consideration of environmental performance, including
identification and reduction of waste and inefficiency in the supply chain.
Decommissioning and rehabilitation
Decommissioning is the process of dismantling, removing and/or finding alternative
uses for facilities. Each site is unique, and our approach varies by location, type of
asset, and local environmental and socioeconomic characteristics.

The process of decommissioning and rehabilitation can be complex, so detailed

planning and preparation for decommissioning assets can start up to 10 years
before execution. The decommissioning process can include a range of activities
such as local habitat restoration, emptying and cleaning of production systems,
plugging wells, dismantling structures, and transporting, recycling, or disposing of
materials.

We incorporate applicable regulatory requirements and globally accepted practices

into our decommissioning plans. These include processes to reduce personnel
safety risks, such as favoring the use of heavy machinery for dismantling our sites.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Progressing-environmental-initiatives/Mini… 5/8
5/6/24, 2:46 PM Minimizing operational waste | ExxonMobil

In addition, we engage with stakeholders to incorporate into our efforts insights

from environmental organizations, recycling experts, academia, and others.

In 2022, nearly 50% of the material generated from decommissioning our

significant onshore projects was diverted from landfills by reclaiming scrap metal
and concrete, reusing treated soil, and recycling residual hydrocarbons as
feedstock.

The process of decommissioning an offshore asset can be complex and present

unique challenges. Our plans consider each asset’s specific marine ecosystems and
facility characteristics, including complexity, size, and weight. ExxonMobil has a
dedicated offshore decommissioning center of expertise that supports and assists
our affiliates around the world with the decommissioning process, from asset
management through end-of-field-life planning and, ultimately, to legacy obligation
management. Our offshore decommissioning project management system includes
dozens of factors, from lease management to cessation of production and project
closeout.

The Sable energy project in Canada, for example, started its life in late 1959, when
exploration near Nova Scotia began. As Canada’s first offshore natural gas project,
Sable provided decades of strategic benefits and billions of dollars of economic
benefits to the region. By 2020, wells were plugged and abandoned, onshore
processing plants were dismantled, and offshore and onshore pipelines were
cleaned and flushed. That same year, all seven of Sable’s offshore platforms were
removed, and about 99% of the materials were recycled.

Instead of decommissioning an asset, the company may choose to rehabilitate it.

Rehabilitation is the process of safely repurposing assets that no longer support
our operations. We consider the interests of various stakeholders when selecting
site-specific approaches to repurpose properties. Our goal is to prevent legacy
impacts on the environment while creating opportunities for beneficial reuse.

Performance
When divesting real property, we work to identify opportunities to return
properties to beneficial reuse. ExxonMobil Environmental and Property Solutions
(E&PS) is our global organization that supports the remediation and stewardship of
surplus onshore sites. From the group’s creation in 2008 through 2022, E&PS has
managed more than $8.5 billion of onshore remediation work and returned 3,100
properties to beneficial end uses. In 2022, E&PS managed approximately 3,800
active remediation onshore sites in 22 countries.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Progressing-environmental-initiatives/Mini… 6/8
5/6/24, 2:46 PM Minimizing operational waste | ExxonMobil

Progressing environmental
initiatives
Managing environmental performance and compliance

Caring for land and biodiversity

Conserving water resources

Improving air quality

Minimizing operational waste

Sustainability at ExxonMobil
Our approach to sustainability

Progressing environmental initiatives

Creating sustainable solutions

Engaging communities and our supply chain

Caring for our workforce

Build your own report

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Progressing-environmental-initiatives/Mini… 7/8
5/6/24, 2:46 PM Minimizing operational waste | ExxonMobil

Click here to build your own report 

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Progressing-environmental-initiatives/Mini… 8/8
5/6/24, 2:44 PM Creating sustainable solutions | ExxonMobil

Creating sustainable solutions

Our approach
Affordable and reliable energy is at the core of every key measure of human
development, and as described in our Global Outlook, the global population is
expected to increase by 25% by 2050.1

Our Advancing Climate Solutions report describes what we are doing to tackle
head-on the challenge of strengthening energy supply and reducing
greenhouse gas emissions.

We are working to create sustainable solutions to do even more to help protect

people, the environment, and the communities where we operate.

FOOTNOTE:
1
This is how the global population has changed in the last 200 years | World Economic Forum
(weforum.org)

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Creating-sustainable-solutions?disableCoo… 1/4
5/6/24, 2:44 PM Creating sustainable solutions | ExxonMobil

Expanding the plastics life

cycle
Plastics make modern life possible. Surgical
devices, cell phones, computers, vehicles,
packaging that protects and preserves food, and
personal protective equipment – all rely on
plastics.

Progressing product safety

ExxonMobil aims to provide the energy and
products the world needs in a way that helps to
protect human health and the environment.

Supporting a just transition

As described in our Global Outlook, economic
development and energy use are inseparable.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Creating-sustainable-solutions?disableCoo… 2/4
5/6/24, 2:44 PM Creating sustainable solutions | ExxonMobil

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Creating-sustainable-solutions?disableCoo… 3/4
5/6/24, 2:44 PM Creating sustainable solutions | ExxonMobil

Executive Summary

Governance and executive compensation

Metrics and data

Content index

Build your own report

Click here to build your report 

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Creating-sustainable-solutions?disableCoo… 4/4
5/6/24, 2:45 PM Expanding the plastics life cycle | ExxonMobil

Sustainability

Expanding the plastics life cycle

Report
Jan. 8, 2024

Plastics make modern life possible. Surgical devices, cell phones, computers,
vehicles, packaging that protects and preserves food, and personal protective
equipment – all rely on plastics. From hospitals and kitchens to science labs and
airports, plastics are increasingly society’s material of choice due to the functional
benefits and, as a category, the greenhouse gas benefits on a life-cycle basis vs.
many alternatives.1

The global population is expected to increase by 25% by 2050,2 and as described in

our Global Outlook, prosperity is projected to rise in both the developed (OECD)
and developing (non-OECD) economies around the world. As living standards
improve, plastics will be instrumental in many of the United Nations Sustainable
Development Goals, including good health, food preservation, and clean drinking
water. Even in the IEA Net Zero Emissions by 2050 scenario, global demand for
primary chemicals is projected to be 20% higher than 2022.2

Approach
To meet society’s evolving needs, our efforts are focused both on enabling the
societal benefits plastics provide and helping address the global issue of plastic
waste. Our approach includes:

• Expanding our advanced recycling capacity to help further broaden the

range of plastics that can be recycled;

• Developing plastic solutions that enable our customers to make products

that society can more easily recycle; and

• Supporting improvements in plastic waste recovery, gathering, and sorting.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Creating-sustainable-solutions/Expanding-… 1/7
 5/6/24, 2:45 PM Expanding the plastics life cycle | ExxonMobil

Strengthening circularity with advanced recycling

Plastics are too valuable to waste, and we believe there is a better use for these
materials than landfill, incineration, or worse, ending up in the environment. We are
helping to address the plastic waste challenge through advanced recycling.

Unlike traditional or “mechanical” recycling, advanced recycling is not limited to

those materials that can be ground down and melted into recycled plastic. With
advanced recycling, difficult-to-recycle plastic waste from a wide range of sources
is broken down at a molecular level, enabling us to convert even complex blends
containing a range of impurities or contaminants into valuable raw materials that
can be used to make products essential to modern life.

*Attributed via ISCC PLUS v3.3 mass balance approach. Does not represent GHG emissions or recycled content.
To learn more, please visit https://cutt.ly/qwSqDjqt.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Creating-sustainable-solutions/Expanding-… 2/7
5/6/24, 2:45 PM Expanding the plastics life cycle | ExxonMobil

Globally, the Organization for Economic Co-operation and Development estimates

that only about 9% of all plastics produced are currently recycled.3 While the first
step needs to be investment in municipal collecting and sorting, we see a huge
opportunity that advanced recycling can help address. Deployed together,
mechanical recycling and advanced recycling could enable a greater volume and
broader range of plastic waste to be recycled.

We sell certified-circular plastics corresponding to the amount of plastic waste we

transform back into usable raw materials. We do this using a mass balance
attribution approach that has been used in other industries for many years. What
is mass balance attribution? In short, it is an accounting process that can be used in
complex value chains like ours in which one input (e.g., plastic waste) is mixed with
other inputs in a way that the different inputs cannot be physically traced
throughout the system. This widely used approach helps our customers match the
volume of their certified-circular plastic purchase to a corresponding amount of
plastic waste that we transformed into usable raw materials.

Our advanced recycling facilities and process are certified via an independent,
third-party certification system called International Sustainability and Carbon
Certification (ISCC) PLUS. ISCC is governed by an association with more than 240
members, including research institutes and NGOs.

The certificate we provide our customers is not a claim that our certified-circular
polymers contain any “recycled content” or carry GHG benefits. Rather, it
represents an assurance that we followed a rigorous mass balance attribution
system that is certified by a third-party. This enables us to be transparent about our
products, helping our customers, and their customers, progress and communicate
circularity goals.

ExxonMobil’s ExxtendTM technology for advanced recycling process does not

involve incineration of plastic waste, which would consume the molecules and
make it impossible to manufacture new products out of them. Instead, in a
chemical reactor, we apply heat but not oxygen to the plastic waste and other
inputs. Without oxygen, there can be no incineration. And, in doing so, we strictly
follow the same rigorous environmental performance standards as in our other
manufacturing processes. Presently, the technology converts approximately 88-
90% of the processed plastic waste into raw materials that can be used to make a
range of valuable products.

For every ton of plastic waste processed through advanced recycling, society
reduces the need to process approximately one ton of fossil-derived
feedstocks.4 And for every ton of certified-circular plastics sold, more than a ton
of plastic waste avoids ending up in other end-of-life dispositions (e.g., landfill,
incineration).

There is rising demand from consumers and customers for circularity, far
exceeding the supply that mechanical recycling can provide. Purchasing certified-

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Creating-sustainable-solutions/Expanding-… 3/7
5/6/24, 2:45 PM Expanding the plastics life cycle | ExxonMobil

circular polymers can enable our customers to achieve circularity goals, such as:

• Unlocking the value of plastic waste by converting it into useful raw

materials;

• Monetizing the value of plastic waste to drive better collection and sorting;

• Contributing to the growth of the recycling sector; and

• Accelerating plastic recycling rates.

We have made initial sales of certified-circular polymers to customers in multiple

regions for use in food-safe plastic packaging. These include Sealed Air and Ahold
Delhaize, Berry Global, and Amcor, all supporting a more circular economy for food
packaging.
Scaling up capacity
At the forefront of the evolving demand
for certified-circular products, we are
uniquely positioned with our scale,
integration, and technology to rapidly
expand advanced recycling capacity and
help meet the needs of our customers
and communities. Since the start of pilot
operations at Baytown, Texas, we have
recycled nearly 40 million pounds of plastic waste as of October 2023 with our
ExxtendTM technology for advanced recycling.

Our Baytown advanced plastic waste recycling facility started up commercial-scale

operations in December 2022, and with the capacity to recycle approximately 80
million pounds of plastic waste per year, it’s one of the largest advanced recycling
facilities in North America. We are assessing opportunities to leverage similar
technology at our affiliate sites in Belgium, the Netherlands, Canada, and other U.S.
locations. We are also collaborating with third parties on advanced recycling
projects in France, Malaysia, Indonesia, and Singapore. We are working toward
building about 1 billion pounds of annual advanced recycling capacity by year-end
2026, assuming supportive public policy.

Increasing recycling rates through collaboration and

innovation
Advanced recycling capacity is largely dependent on supportive government policy
and technology advancements that expand the collection and sorting of plastic
waste. Through organizations such as the Alliance to End Plastic Waste, we are

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Creating-sustainable-solutions/Expanding-… 4/7
5/6/24, 2:45 PM Expanding the plastics life cycle | ExxonMobil

collaborating with others across the value chain to increase plastic waste collection
and sorting to help support a more circular economy for plastics.

Cyclyx International, our joint venture with Agilyx Corp. and LyondellBasell, is
developing innovative solutions for aggregating and pre-processing large volumes
of plastic waste for both mechanical and advanced recycling. Cyclyx’s first-of-its-
kind plastic waste processing facility in Houston will provide feed for plastic
recyclers, including ExxonMobil. And we are both founding members of
the Houston Recycling Collaboration, which brings together industry and
government to increase access to plastic recycling in the Houston area.

One local program that has seen positive early results is our plastic collection effort
with Cyclyx and LyondellBasell. In just four months, the city of Houston collected
more than 100,000 pounds of plastic waste at one community drop-off location –
two to three times more than before the program began.

Responsible manufacturing: the right products the right

way
Our VistamaxxTM performance polymers make recycling easier by making
polyethylene and polypropylene more compatible, which allows them to “mix in the
melt” and eliminates the need for mechanical recyclers to separate these materials
for processing. The result is a higher quality product for high-value applications at a
lower cost.

Our efforts are further supported by our systems to responsibly manage plastics
manufacturing, including the global standards we have set across all of our resin-
handling operations. These standards are more stringent than the laws and
regulations related to plastic pellet loss5 in many of the places we operate, and we
collaborate with industry through Operation Clean Sweep-Blue to share best
practices. As a result, in 2023 we maintained zero reportable pellet losses to the
environment from our operated resin-handling facilities.

FOOTNOTES:

1. April 2018 report of Franklin Associates on Life Cycle Impacts of Plastic

Packaging Compared to Substitutes (April 2018 Franklin Associates
Report); U.S. packaging market; alternatives include steel, aluminum, glass,
paper-based packaging, fiber-based textiles, and wood (Table 4-14). Life
Cycle Impacts of Plastic Packaging Compared to Substitutes in the United
States and Canada: Theoretical Substitution Analysis - American Chemistry
Council.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Creating-sustainable-solutions/Expanding-… 5/7
5/6/24, 2:45 PM Expanding the plastics life cycle | ExxonMobil

2. 2023 IEA report “Net Zero Roadmap: A global pathway to keep the 1.5°C
Goal in Reach.”

3. Plastic pollution is growing relentlessly as waste management and recycling

fall short, says OECD.

4. On a global, macroeconomic basis, assuming constant demand.

5. Pellet loss means plastic waste finding its way into the environment
potentially accumulating in the external water environment.
(https://www.opcleansweep.org/)

Creating sustainable solutions

Expanding the plastics life cycle

Progressing product safety

Supporting a just transition

Sustainability at ExxonMobil
Our approach to sustainability

Progressing environmental initiatives

Creating sustainable solutions

Engaging communities and our supply chain

Caring for our workforce

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Creating-sustainable-solutions/Expanding-… 6/7
5/6/24, 2:45 PM Expanding the plastics life cycle | ExxonMobil

Build your own report

Click here to build your own report 

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Creating-sustainable-solutions/Expanding-… 7/7
5/6/24, 2:45 PM Progressing product safety | ExxonMobil

Sustainability

Progressing product safety

Report
Jan. 8, 2024

ExxonMobil aims to provide the energy and products the world needs in a way that
helps to protect human health and the environment. Our scientists and product
stewardship professionals collaborate with industry and academic researchers,
regulatory bodies, and policy makers to help ensure that the best available science
informs industry product safety policy. We have a continuous process of updating
and translating into multiple languages our vast library of safety data sheets listing
risks and proper use of our products. In 2022, we continued our strong
performance in our Fuels, Lubricants, and Chemicals businesses with zero high-
consequence product stewardship-related incidents, a key internal metric.

United Nations Sustainable Development Goals related to this content.

Approach
The products we make bring benefits to modern society, and our scientists are at
the forefront of product safety research.

In addition to developing testing methods and models for company use, we

collaborate with industry professionals, academic researchers, regulators, and
policy makers to help ensure that the best available science informs industry
product safety policy. We factor relevant health, environmental exposure, and use-
data into our development process and into our communications with employees
and customers to mitigate potential impacts of our products. We work to identify
and manage risks associated with our products and to avoid the manufacture and
sale of products that cannot meet an appropriate level of safety for people and the
environment.

Our Product Safety Policy is consistent with external product safety standards,
including those provided by the American Chemistry Council Product Safety Code,
and is incorporated into ExxonMobil’s management systems. The primary way we
communicate potential product hazards and risks to our customers is through our
Product Stewardship Information Management System (PSIMS). This tool provides

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Creating-sustainable-solutions/Progressin… 1/7
5/6/24, 2:45 PM Progressing product safety | ExxonMobil

information on the safe handling, transport, use, and disposal of our products via
safety data sheets.

Objective
Our primary focus is to identify and manage risk associated with our
products and to provide the appropriate level of safety for people and
the environment.

Please see our Product Safety Policy for more about our approach to
health, safety, and environmental management of our products.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Creating-sustainable-solutions/Progressin… 2/7
5/6/24, 2:45 PM Progressing product safety | ExxonMobil

Management and application

Throughout the numerous product value chains, we emphasize product safety,
product stewardship, regulatory compliance, and science-based product safety
advocacy. This work includes communicating with customers and addressing
regulatory developments, issuing safety data sheets, labeling products accurately,
and supporting our customers’ safe use and disposal of our products.

Product standards
Our products, including chemicals, lubricants, and fuels, meet or exceed applicable
regulations, standards, and guidelines, including:

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Creating-sustainable-solutions/Progressin… 3/7
5/6/24, 2:45 PM Progressing product safety | ExxonMobil

• Globally Harmonized System of Classification and Labelling of Chemicals

(GHS)

• EU Registration, Evaluation, Authorization and Restriction of Chemicals

(REACH)

• U.N. Strategic Approach to International Chemicals Management (SAICM)

We also apply relevant standards for product safety where no regulation or

standards exist to enable communication of product safety aspects to our
customers.

Safe handling
We apply safety and environmental standards in the transport of our products, and
we regularly engage with industry peers and emergency responders to promote
the safe transport of oil and chemical products. For example, we perform periodic
risk assessments in our transportation processes to find opportunities to further
mitigate risk, such as implementing new technologies like GPS or positive train
control with our third-party transportation providers. We continue to improve
training programs for public responders in the unlikely event of a release and have
had zero work-related workforce (employee or contractor) fatalities caused by
transport incidents from 2017 through 2022.

We collaborate with others to develop, evaluate, and promote the best available
science to assess product safety, including the following organizations:

• Health and Environmental Sciences Institute (HESI)

• European Centre for Ecotoxicology and Toxicology of Chemicals (ECETOC)

• Health Effects Institute (HEI)

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Creating-sustainable-solutions/Progressin… 4/7
5/6/24, 2:45 PM Progressing product safety | ExxonMobil

Performance
Our performance is monitored relative to established safety standards, and we
share that information through a range of publications and communication
channels, including this report.

Safety data sheets

In 2021, ExxonMobil embarked on a major upgrade of our PSIMS to improve
access to and management of product safety information. The upgrade is designed
to increase connectivity to formula information and supplier data. It will also
enhance the interface with our manufacturing sites, improving access to product
safety information. In 2022, we completed more than 1,500 product and
component assessments and distributed more than 70,000 safety data sheets to
customers in more than 150 countries.

Scientific journals and technical presentations

We continuously develop and publish new research. In 2022, ExxonMobil
Biomedical Sciences (EMBSI) published 22 peer-reviewed scientific papers. EMBSI
representatives also gave 17 technical presentations to scientific conferences,
regulatory agencies, and academic institutions. Among them were the Society of
Environmental Toxicology and Chemistry, the Society of Toxicology, and the
International Society of Exposure Sciences. A list of external publications from
EMBSI scientists is available at ORCID.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Creating-sustainable-solutions/Progressin… 5/7
5/6/24, 2:45 PM Progressing product safety | ExxonMobil

Product stewardship metrics

A key internal metric to help us understand the efficacy of our product safety
management system is the number of high-consequence product stewardship-
related incidents. A high-consequence incident is measured through a combination
of potential impacts including safety, health, environmental, and regulatory. In
2022, we continued our strong performance in our Fuels, Lubricants, and
Chemicals businesses with zero high-consequence product stewardship-related
incidents.

Creating sustainable solutions

Expanding the plastics life cycle

Progressing product safety

Supporting a just transition

Sustainability at ExxonMobil
Our approach to sustainability

Progressing environmental initiatives

Creating sustainable solutions

Engaging communities and our supply chain

Caring for our workforce

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Creating-sustainable-solutions/Progressin… 6/7
5/6/24, 2:45 PM Progressing product safety | ExxonMobil

Build your own report

Click here to build your own report 

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Creating-sustainable-solutions/Progressin… 7/7
5/6/24, 2:45 PM Supporting a just transition | ExxonMobil

Sustainability

Supporting a just transition

Report
Jan. 8, 2024

In support of a lower-emissions future, ExxonMobil continues to develop our

workforce, empower local economic growth, mitigate potential negative impacts of
our operations, and engage with and support the communities in which we work
and live. For more than a century, we have worked to meet the changing needs of
our customers and stakeholders, which has been key to creating long-term
shareholder value and critical to our continued success. This includes considering
the views of those in these communities who historically have had a limited but
important voice on this broad topic.

ExxonMobil intends to play a leading role throughout a thoughtful energy

transition, no matter how fast it may proceed or how long it may take. A key
element of that leadership is the low carbon emissions business we are building. In
that business and our base operations, we employ highly trained, experienced
employees whose skillsets often overlap and are therefore useful across many of
our businesses. Underpinning our work is one of our most critical advantages: a
century of experience evolving our business to meet changing societal needs, and a
culture of innovation, supported by training and the development of our employees
at every stage of, what is expected to be, a decades-long career. Adaptation has
been key to our success and without a workforce capable of entering and,
ultimately, leading new businesses we would not have prospered for more than
140 years.

In this regard, we have always been engaged in what is now characterized as a

“just transition,” one in which our employees are well positioned to play meaningful
roles in a traditional energy business that will be vital for decades to come AND play
an equally important role in the lower carbon emissions portfolio we are hard at
work building. In many cases, the “transition” will be minimal (e.g. biofuels versus
conventional fuels). In other circumstances, we are calling upon related experience
to do similar work (e.g. drilling for lithium versus oil or gas). And, in some cases, like
carbon capture and storage, we are expanding our efforts in work we have been
doing for more than 40 years and will train a larger workforce as this part of our
business grows.

Our commitment to our employees and the communities in which we work has
been on display since the 19th century. While the discussion of a “just transition” is
a recent development, we have been practicing it for decades – proving to our
employees and their friends, families, and neighbors that we care about them, value

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Creating-sustainable-solutions/Supportin… 1/10
5/6/24, 2:45 PM Supporting a just transition | ExxonMobil

the work they do, and are committed to developing them for the duration of their
careers. At ExxonMobil, that is good business, and the just thing to do.

United Nations Sustainable Development Goals related to this content.

Approach
As described in our Global Outlook, economic development and energy use are
inseparable. Where there is energy poverty, there is poverty. And where energy
availability rises, living standards rise as well. Between now and 2050, developing
countries will see GDP per capita more than double, driving higher demand for
energy.

Meeting that demand with lower-emission energy options is vital to making

progress toward society’s environmental goals while fully serving its energy needs.
At the same time, failing to meet demand would prevent developing nations from
achieving their economic goals and their citizens from living more prosperous,
fulfilling lives. The need for a balanced approach has never been greater, with an
understanding of how the pace and scale of an energy transition could impact
workers, communities, supply chains, consumers, and broader economic
development.

Sustained emissions reductions require a thoughtful and comprehensive approach.

That approach must balance benefits and costs, be sensitive to society’s needs, and
avoid economic hardship, market disruptions, and energy and product shortages.
To accomplish this and move society toward a net-zero future, unprecedented
collaboration among governments, companies, universities, organizations,
communities, and individuals will be required. Informed by relevant, globally
recognized principles, such as those of the International Labour Organization,
that support a “just transition,” we’re working to provide energy and products
people need, lead in reducing our own and others’ greenhouse gas emissions, and
deliver on our strategic objectives by continuing to:

• Respect human rights as a fundamental principle in our operations.

• Create value for our customers, business partners, and communities.

• Provide employees opportunities for personal and professional growth with

meaningful work and training.

• Consider and manage potential environmental and socioeconomic impacts of

projects and operations throughout the asset lifecycle.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Creating-sustainable-solutions/Supportin… 2/10
5/6/24, 2:45 PM Supporting a just transition | ExxonMobil

• Actively listen and engage employees and the communities where we work
in an ongoing effort to improve quality of life — responding to these parties
honestly and forthrightly at all times, no matter the circumstance or issue.

Fundamentally, we work to foster mutual understanding, trust, and cooperation

with stakeholder groups on these and other topics, as described throughout this
Sustainability Report.

SPOTLI GH T

Low Carbon Solutions

Low Carbon Solutions (LCS) includes
employees with decades of experience at
our company or in the oil and natural gas
industry as well as functional experts who
bring outside-in thinking. Employees
joining the LCS organization are offered
onboarding and technical training and
LCS leaders host regular sessions open to
all employees designed to increase
awareness of business objectives and
performance, provide expertise on variety
of topics related to the business, and seek
feedback from the broader workforce.

Sarah Klepper, Senior Maintenance Superintendent at our LaBarge, Wyoming

facility, is leading a team to build out and operate the equipment critical to
expanding Carbon Capture and Storage capability by up to 1.2 million metric
tons of CO2, in addition to the 6-7 million metric tons captured at LaBarge each
year. This will allow ExxonMobil to capture nearly 20% of all human-made CO2
captured in the world each year, and to produce 20% of the world's helium
critical to medical and other technology applications. as well as LNG for home
heating and transportation applications.

As a Chemical Engineer with a background in traditional oil and gas operations,

global projects design, and planning, Sarah has been able to combine her deep
knowledge of facility operations with cutting-edge emission reduction
technologies like carbon capture and storage.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Creating-sustainable-solutions/Supportin… 3/10
5/6/24, 2:45 PM Supporting a just transition | ExxonMobil

"It has been such a great experience to work with an incredible team and a
facility that is utilizing so many first-of-its-kind technologies to reduce emissions
and provide products needed globally. It's been tremendously rewarding to
leverage a lot of my prior experience from our refining operations to our LaBarge
facility," Sarah reflected.

Management and application

ExxonMobil chairs the Just Transition Task Force within Ipieca, which is “the
global oil and natural gas association for advancing environmental and social
performance across the energy transition.”1 The task force shares best practices
and information to help “support the oil and gas industry’s participation in
international collaboration to transition to a lower-carbon world in a way that’s just
and fair for workforces, communities, and consumers.”2

We operate facilities or market products across the globe. Our standards, systems,
processes and programs help us to understand and manage risks and
opportunities within the unique context of each location, from developing
economies focused on energy security to communities with established workforces
seeking new opportunities.

We seek to invest in and support employees for long-term careers. We also work to
contribute to the social progress and economic prosperity of our communities,
including by building and maintaining a qualified and competitive supply chain in the
locations in which we operate. We regularly engage and collaborate with industry,
communities, employees, educational institutions, governments, businesses, and
NGOs to support these objectives.

As we advance projects and activities associated with our Low Carbon Solutions
(LCS) business, we will continue to apply our integrated environmental and
socioeconomic management approach, which supports prompt identification and
action to address potential socioeconomic risks and opportunities for positive
impact. We update our environmental and socioeconomic assessments and
management plans as needed to reflect changes to our operations or
socioeconomic sensitivities.

Our employees
We work hard to provide meaningful development to every employee so that they
have opportunities for personal and professional growth. The critical and
transferable skills driving our success today are the same ones required for us to
play a leading role in a thoughtful energy transition. In fact, our work to reduce
emissions is largely grounded in the same skillsets present in our legacy businesses.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Creating-sustainable-solutions/Supportin… 4/10
5/6/24, 2:45 PM Supporting a just transition | ExxonMobil

“Meaningful development” is one of our five strategic priorities. Our career-

oriented, individually tailored development approach is unique and results in many
employees moving to new roles about every three years. In 2022, approximately
12,000 employees took a new job role within the company, providing an
opportunity to grow and develop new skills and capabilities. For many employees,
this also included an opportunity to work in another region or part of our business.

Also in 2022, we reorganized around our three integrated core businesses,

Upstream, Product Solutions, and Low Carbon Solutions – enabled by centralized
organizations. This business structure provides our employees even greater access
to opportunities for personal and professional growth. It also broadens their
experiences, leadership, and technical capabilities that equip them to work on a
broader portfolio of opportunities, now and in the future.

Additional information on our programs can be found in our annual Investing in

People report.

Communities
We believe that respecting human rights, managing our impacts on communities,
and making valued social investments are integral to the success of our business.

We recognize that our operations have the potential to impact communities,

positively and negatively. That’s why we regularly engage with a diverse range of
stakeholders who are representative of the community to understand and consider
their concerns and potential opportunities.

As part of our engagement process, we seek to identify and consult with potentially
disadvantaged communities to understand possible barriers that may limit their
active participation in engagement opportunities. We then work to tailor our
engagement to be locally and culturally appropriate and provide accessible,
inclusive, and effective channels for exchanging information and proactively
identifying issues or concerns.

Inclusive engagement helps us be responsive to concerns and opportunities and,

where appropriate, integrate the results of these discussions into our efforts. Our
integrated approach to managing potential socioeconomic and environmental
impacts includes regular community and stakeholder engagements throughout the
operational life of our assets to help avoid or reduce risks, enhance benefits,
support effective investments, avoid delays, remedy impacts, and resolve issues or
embrace opportunities at the local level.

Additional information can be found in the Managing socioeconomic

impacts section of our Sustainability Report.

SPOTLI GH T

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Creating-sustainable-solutions/Supportin… 5/10
5/6/24, 2:45 PM Supporting a just transition | ExxonMobil

The Solent Cluster

In late 2022, ExxonMobil’s affiliate, Esso
Petroleum Company Limited, joined with
the Solent Local Enterprise Partnership
and the University of Southampton to
announce The Solent Cluster. This was
the first major decarbonization initiative in
Southern England that could
substantially reduce CO2 emissions from
industry, transport, and households.

The Solent region is home to our Fawley complex near the port of Southampton,
where we have produced hydrogen for more than 50 years. By leveraging our
core capabilities in project management, operations experience and geophysics
expertise, we have the potential to invest in low-carbon hydrogen and carbon
capture facilities at Fawley.

The Cluster brings together a range of leading organizations, including

manufacturers and engineering companies, regional businesses and industries,
leading logistics and infrastructure operators, and academic institutions.

Supply chain
We understand the importance of building and maintaining a qualified and
competitive supply chain in the locations in which we operate. As with our
workforce, many of the goods and services essential for our business today are the
same ones needed to support our operations in the future.

As part of our supply chain portfolio, we purchase goods and services from local,
small and diverse suppliers and, where appropriate, work to build their capabilities
through local programs to increase competition and innovation.

This approach helps to make a positive impact on communities by building long-

term, local economic capacity in support of a just energy transition and contributes
to the objectives of the related U.N. Sustainable Development Goals.

Additional information can be found in the Engaging with communities and our
supply chain section of our Sustainability Report.

Industry collaboration

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Creating-sustainable-solutions/Supportin… 6/10
5/6/24, 2:45 PM Supporting a just transition | ExxonMobil

Around the world, we have a long history of

collaboration with universities, national laboratories, industries, and companies of
all sizes. We are continuously looking for new opportunities where each participant
brings unique skills and capabilities that further support the development of the
current and next generation of workers and suppliers.

Many of our collaborations with universities and others in support of the energy
transition are described in our Advancing Climate Solutions, Sustainability, and
Investing in People reports.

We also leverage the scale of our industry through participation in trade

associations and by expanding high-quality collaborations with local community
and technical colleges.

The American Petroleum Institute (API) is an example of an industry association

investing in the future of energy by fostering a diverse, inclusive, and resilient
workforce. API offers a broad range of training and certifications, and ExxonMobil
consults on program designs and curriculum development in support of the
current and the next generation of workers.

The Ipieca Just Transition Task Force published its 2022 activities and a statement
on accelerating a just transition, which was developed in consultation with
member companies and external industry stakeholders. It identifies international
efforts needed to achieve a just transition.

Ipieca also published a just transition literature review, providing insights into the
concepts, definitions and priorities of a range of organizations relevant to the
sector, all in an effort to raise awareness and understanding of a just transition.

Performance
Because our business is positioned for profitable growth, even in potentially
aggressive decarbonization pathways, we expect to continue to provide meaningful
employment opportunities and support investment and indirect economic growth
within the communities where we operate.

We are developing talent both from within ExxonMobil and through selective hiring
for skills and capabilities to enhance what we already have. For example, in the area
of carbon capture and storage, many of our geoscientists are working on new
initiatives, while our project engineers are working on the infrastructure
investments needed to support third-party emission-reduction efforts.

Another example is our Strathcona, Canada, refinery, where we are integrating

lower-emission projects into our existing facilities. At this site, which is operated by
our majority-owned affiliate, Imperial Oil Ltd., employees will receive training and
development to operate a new biofuels unit. At the same time, local Indigenous
community leaders are involved in discussions with the company about potential

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Creating-sustainable-solutions/Supportin… 7/10
5/6/24, 2:45 PM Supporting a just transition | ExxonMobil

business development opportunities, and we have contracted with local businesses

for a variety of services, such as site construction and equipment fabrication.

SPOTLI GH T

Fueling Victoria for the long haul

In 2021, Mobil Refining Australia Pty Ltd,
our affiliate in Melbourne, Australia,
began work to convert a 70-year old
refinery into an import terminal.
Leveraging existing facilities and
infrastructure, the Altona site is in the
process of becoming one of the largest
and most efficient fuel import and storage
facilities in the country.

Prior to the shutdown, employees were consulted to identify their wishes about
the next steps in their careers. Using the advantages of our integrated business
and facilitated by our development programs, where possible, we worked to
identify roles for employees to support the site's transition or elsewhere in the
company.

For those leaving the company, a wide range of support services were offered.
They included additional training and certifications, coaching for writing
resumes and applying for jobs, and a virtual career fair showcasing an array of
available positions and industries looking to hire people with similar skills and
talents.

The site has continued to be active with the community through ongoing
philanthropic contributions and through local sourcing of a variety of services
and supplies to meet the terminal’s evolving needs.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Creating-sustainable-solutions/Supportin… 8/10
5/6/24, 2:45 PM Supporting a just transition | ExxonMobil

FOOTNOTES:

1. http://www.ipieca.org/.

2. People | Ipieca.

Creating sustainable solutions

Expanding the plastics life cycle

Progressing product safety

Supporting a just transition

Sustainability at ExxonMobil
Our approach to sustainability

Progressing environmental initiatives

Creating sustainable solutions

Engaging communities and our supply chain

Caring for our workforce

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Creating-sustainable-solutions/Supportin… 9/10
5/6/24, 2:45 PM Supporting a just transition | ExxonMobil

Build your own report

Click here to build your own report 

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Creating-sustainable-solutions/Supporti… 10/10
5/6/24, 2:44 PM Engaging communities and our supply chain | ExxonMobil

Engaging communities and our supply

chain

Our approach
We are committed to being a good corporate citizen in the places we operate
worldwide.

We work to safeguard the health and security of our employees and the public,
responsibly manage our social impacts, and uphold respect for human rights in
our operations. We also strive to create effective collaborations with its
stakeholders — our workforce, suppliers and customers, and the communities
around the world where we operate.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Engaging-communities-and-our-supply-ch… 1/4
5/6/24, 2:44 PM Engaging communities and our supply chain | ExxonMobil

Respecting human rights

Our commitment to respecting human rights is
embedded throughout our corporate policies,
practices, and expectations.

Managing socioeconomic
impacts
We are committed to being a good corporate
citizen in the places we operate worldwide. We
maintain high ethical standards; obey applicable
laws, rules, and regulations; and respect local
and national cultures.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Engaging-communities-and-our-supply-ch… 2/4
5/6/24, 2:44 PM Engaging communities and our supply chain | ExxonMobil

Working with our global

supply chain
We work to promote inclusive sourcing open to
all, respecting human rights, and working to
reduce impacts to the environment in our supply
chain, and we seek to work with suppliers that
share our commitment.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Engaging-communities-and-our-supply-ch… 3/4
5/6/24, 2:44 PM Engaging communities and our supply chain | ExxonMobil

Executive Summary

Governance and executive compensation

Metrics and data

Content index

Build your own report

Click here to build your report 

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Engaging-communities-and-our-supply-ch… 4/4
5/6/24, 2:45 PM Respecting human rights | ExxonMobil

Sustainability

Respecting human rights

Report
Jan. 8, 2024

Our commitment to respecting human rights is embedded throughout our

corporate policies, practices, and expectations. We are guided by the goals of
universally recognized human rights principles as we identify and mitigate the
potential impacts of our activities.

• We strive to have a positive influence on our workforce and in the

communities where we operate.

• We condemn human rights violations in any form, and we actively express

these views in our engagements with governments and other stakeholders.

• We do not use forced or compulsory labor in our operations, and we forbid

the use of child labor in our workforce.

Approach
We are committed to respecting human rights as a fundamental principle in our
operations. Our approach is guided by the goals of universally recognized
principles, which are integrated into our policies, practices, and expectations, and
regularly reinforced through training. Our human rights efforts reflect the spirit and
intent of the United Nations Universal Declaration of Human Rights.

Our human rights efforts also support the International Labour Organization
1998 Declaration on Fundamental Principles and Rights at Work (ILO
Declaration), including:

• Freedom of association and effective recognition of the right to collective

bargaining.

• Elimination of all forms of forced or compulsory labor.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Engaging-communities-and-our-supply-c… 1/11
5/6/24, 2:45 PM Respecting human rights | ExxonMobil

• Effective abolition of child labor.

• Elimination of discrimination in respect of employment and occupation.

• Safe and healthy working environments.

Our policies and practices incorporate elements of the 2011 U.N. Guiding
Principles on Business and Human Rights (UNGPs) “Protect, Respect and
Remedy” framework for the distinct but complementary roles of businesses and
governments regarding human rights including commitments, due diligence, and
access to remedy.

When applicable, our practices are also guided by the goals of the:

• Voluntary Principles on Security and Human Rights.

• U.N. Declaration on the Rights of Indigenous Peoples.

• ILO Convention 169 Concerning Indigenous and Tribal Peoples in

Independent Countries.

In addition, we participate in related international initiatives, including our active

involvement with Ipieca, the “global oil and gas association for advancing
environmental and social performance across the energy transition.”1 Our
engagement with Ipieca also includes developing and sharing practices on human
rights due diligence and human rights supply chain management across the oil,
natural gas, and other extractive industries.

Integrated into our policies and practices

Defining our expectations for ethical conduct, our Standards of Business
Conduct include our “foundation policies” and incorporate key elements of the U.N.
Global Compact. The Board of Directors adopts and oversees the administration of
these standards, which uphold the values of human rights, labor, the environment,
and anti-corruption. Wholly owned and majority-owned subsidiaries of Exxon
Mobil Corporation generally adopt policies similar to the Corporation’s foundation
policies, and these foundation policies collectively express expectations for
directors, officers, and employees.

Core policies from our Standards of Business Conduct include:

• Ethics: We comply with applicable governmental laws, rules, and regulations.

• Health: We identify, evaluate, and manage health risks related to our

operations that could affect employees, contractors, or the public.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Engaging-communities-and-our-supply-c… 2/11
5/6/24, 2:45 PM Respecting human rights | ExxonMobil

• Complaint procedures and open-door communication: These encourage

employees to ask questions, voice concerns, and make appropriate
suggestions regarding the business practices of the Corporation.

• Environment: We conduct our business in a manner compatible with the

balanced environmental and economic needs of the communities in which
we operate.

• Safety: We conduct our business in a manner that protects the safety of

employees, others involved in operations, customers, and the public.

• Equal Employment Opportunity: We provide equal employment opportunity

in conformance with all applicable laws and regulations to individuals who
are qualified to perform job requirements.

Our Statement on Labor and the Workplace reinforces ExxonMobil’s commitment

to providing positive, productive, and supportive work environments. Additionally,
our Standards of Business Conduct provide a framework for responsible
operations and are consistent with the spirit and intent of the ILO Declaration.
ExxonMobil and its affiliates support these principles, developing and implementing
policies, procedures, and practices that align with applicable laws, as well as local
circumstances and customs, to accomplish the objectives of the ILO Declaration.
This includes recognizing and respecting employees’ right to join associations and
choose representative organizations for the purpose of engaging in collective
bargaining or providing alternative means for employees to voice concerns.

Our Statement of Principles on Security and Human Rights highlights our

commitment to conduct business in a way that protects the security of personnel,
facilities, and operations and respects human rights. The framework guides our
wholly owned and majority-owned operating affiliates on managing interactions
with host government-assigned security and private security providers. It also
offers guidance for documenting and reporting allegations of human rights abuses
in the protection of our assets.

Our Supplier, Vendor, and Contractor Expectations call for the operations and
business practices of these entities to be conducted in a manner consistent with
the ILO Declaration, which recognizes freedom of association and includes the
elimination of child labor, forced labor, and workplace discrimination. They also
communicate our expectation of respecting human rights in a manner consistent
with the goals of the UNGPs. Our suppliers, vendors, and contractors are held to
stringent compliance, anti-corruption, conflict of interest, safety, and other
guidelines in order to remain in good standing.

Reinforced through training

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Engaging-communities-and-our-supply-c… 3/11
5/6/24, 2:45 PM Respecting human rights | ExxonMobil

We reinforce our commitment to

respecting human rights through
training. Our Standards of Business
Conduct are a key part of onboarding
new employees, and our Standards are
reinforced and communicated to
employees annually. Employees are
regularly required to complete business
practices training, which is planned to be
conducted again in 2024. The training
covers select foundation policies (ethics,
for example), as well as procedures for raising concerns and facilitating open
communication with management. Our wholly owned and majority-owned
subsidiaries generally adopt policies similar to our foundation policies and provide
similar training.

Human rights training is available to all employees globally to build an

understanding of these topics and an awareness of risks. Human rights is also
included as a core element of our socioeconomic management training offered in
an instructor-led training environment.

Highlights of our human rights training in recent years:

• Since 2016, we have supported the development and delivery of training on

the goals of the Voluntary Principles on Security and Human Rights to more
than 60,000 security service providers and members of government security
forces.

• Over the past several years, human rights awareness training has been
available to our employees, including professionals in the procurement
function, to improve their understanding of human rights issues and
awareness of potential human rights risks. Since 2016, more than 1,700
procurement employees have received tailored training on this topic.

Management and application

We identify, assess, and manage human rights risks and opportunities through
practices that support due diligence and access to remedy. On a quarterly basis,
topics related to human rights are reviewed by the Chairman and Management
Committee.

Our efforts are focused on:

• Communities and people.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Engaging-communities-and-our-supply-c… 4/11
5/6/24, 2:45 PM Respecting human rights | ExxonMobil

• Security.

• Workforce and supply chain.

Due diligence
Our practices support early identification and assessment of potential human rights
impacts, along with other socioeconomic impacts and opportunities associated
with our activities. We work to avoid or reduce any human rights or socioeconomic
risk through comprehensive planning, effective mitigation, monitoring, and other
measures. As part of our Environmental, Socioeconomic, and Health Impact
Assessment and Management process, we conduct initial country assessments
that include early identification of qualitative human rights risks. We also apply a
human rights risk screening tool to support our analysis of these potential risks at
country, project, and operations levels, incorporating elements aligned with key
global human rights principles.

Our socioeconomic management practices are guided by our Environmental

Aspects Guide, which considers environmental, social, and economic
characteristics. Such practices are consistent with our Environment Policy and
Operations Integrity Management System (OIMS), which also guides our
approach to identifying, assessing, and managing potential human rights impacts.

Access to remedy
Consistent with international standards, we provide effective, accessible, and
culturally appropriate channels for individuals or communities to raise concerns in a
way that seeks to support confidentiality and non-retaliation. We make these
available through our community and operations-level grievance management
processes, as well as our complaint procedures and open-door communication for
employees.

More information can be found here on how our processes and practices for
stakeholder engagement and grievance management support our integrated
approach to human rights and access to remedy.

Focus Areas
Communities and people
Our goal is to enhance the benefits of our business to local communities and to
appropriately manage environmental, socioeconomic and health risks. Our
socioeconomic management practices support our integrated approach to
respecting human rights and include elements such as community health, safety
and security; local economic development; land use, resettlement and livelihood
restoration; cultural heritage; and Indigenous peoples.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Engaging-communities-and-our-supply-c… 5/11
5/6/24, 2:45 PM Respecting human rights | ExxonMobil

More information on our approach to socioeconomic management and our

commitment to engaging with stakeholders in our communities the can be found
here.

Security
Since 2002, ExxonMobil has been a member of the Voluntary Principles Initiative
(VPI), a multi-stakeholder effort supporting the implementation of the Voluntary
Principles on Security and Human Rights (VPSHR). Each year, we disclose an
update on our activities and processes in support of the principles, with additional
focus on regions facing geopolitical conflict. In 2023, VPI published this annual
report on their website for the first time.

Our standard contracts for security services include provisions, where appropriate,
requiring training for security personnel on expectations and responsibilities
associated with one or more of the goals articulated in international principles, local
laws and regulations:

• ExxonMobil’s Statement of Principles on Security and Human Rights.

• Local laws and regulations.

• Provisions of the U.N. Universal Declaration on Human Rights.

• International Labour Organization’s 1998 Declaration on Fundamental

Principles and Rights at Work.

• U.N. Code of Conduct for Law Enforcement Officials.

• U.N. Basic Principles on the Use of Force and Firearms by Law Enforcement
Officials.

• Voluntary Principles on Security and Human Rights.

These standard security services contract provisions also require contractors to

monitor, report, and investigate credible allegations of human rights abuses and to
immediately remove any of their personnel credibly alleged to have committed a
human rights abuse.

ExxonMobil operates in places where engagement with host governments is

needed to support security and respect for human rights in local operations.
Where host governments require us to engage their official government security
forces, we work to have written agreements with the host nations that include
expectations for respecting human rights consistent with the goals of the VPSHR.

We help train security providers on the goals of the VPSHR and provide targeted
training for ExxonMobil personnel in global affiliates where host government

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Engaging-communities-and-our-supply-c… 6/11
5/6/24, 2:45 PM Respecting human rights | ExxonMobil

security forces are engaged. The training focuses on our expectations for host
government security deployment, including identification of the risks of security-
related human rights impacts in communities.

Workforce and suppliers

We respect the human rights of our workforce through our focus on workforce
development, safety, security and health, as well as our procedures for complaints
and open-door communication. Details on management and implementation in
these areas can be found at these links:

• Workforce development

• Workforce health

• Workplace security

• Workforce safety

• Complaint procedures and open-door communication

We use an integrated, risk-based due diligence approach that focuses on

workplace rights and leverages our current practices and systems to identify,
assess and manage potential human rights risks within our supply chain.

Before awarding a contract, we screen suppliers across several compliance areas,

including sanctions, anti-corruption, and human trafficking. We use third-party
information such as government and media databases. Our due diligence process
for identifying, assessing and monitoring human rights risks focuses on three
factors: the supplier, the commodity, and the location. Identification of a higher risk
in these areas triggers further assessment of a supplier’s policies and risk
management practices prior to continuing with the contracting process.

More information on broader supply chain management can be found here.

Performance
To monitor our effectiveness, we have processes to track performance across the
specific areas associated with communities and people, security, workforce, and
suppliers. Additionally, through monitoring and evaluation of feedback and
emerging trends, as well as grievance mechanisms at our project and operating
sites, we develop or enhance associated management plans and incorporate
learnings into our training programs.

We continue to engage with evolving international initiatives:

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Engaging-communities-and-our-supply-c… 7/11
5/6/24, 2:45 PM Respecting human rights | ExxonMobil

• From 2020 to 2023, ExxonMobil helped develop the new edition of the
Human Rights Due Diligence Guide, the Labour Rights Risk Identification
in the Supply Chain, the Supply Chain Library of Questions and Resources,
and Online Labour Rights Training, all published by Ipieca.

Key examples of our disclosures and compliance with laws and regulations related
to human rights include:

• Annual Slavery and Human Trafficking Statements in accordance with the

U.K. Modern Slavery Act of 2015.

• The annual Australia Modern Slavery Statement of ExxonMobil Australia

Pty Ltd, Mobil PNG Gas Holdings Pty Ltd and related reporting entities, in
accordance with the Australia Modern Slavery Act of 2018.

• The annual Norway Transparency Act Statement 2023 for each of Esso
Norge AS and ExxonMobil Exploration and Production Norway AS, in
accordance with the Norwegian Transparency Act.

• Our annual conflict minerals filing to the U.S. Securities and Exchange
Commission, providing disclosures regarding our supply chain for gold, tin,
tungsten, and tantalum.

Our values in practice: Workforce housing and accommodations

From the early stages of construction through the life of a project, when needed,
we provide temporary or long-term accommodations for employees and
contractors on site to facilitate the building, operation, and maintenance of our
facilities.

Our requirements for these sites are tailored to each project and location to
support the welfare of our workforce, respect human rights, and avoid or mitigate
risks to community health, safety, and security. Where applicable, frameworks such
as the International Finance Corporation (IFC) standards or the ILO Maritime
Labor Convention, 2006 (covering offshore camps) are used to inform our
requirements.

Our worker housing and accommodations are designed to provide:

• Healthy and hygienic housing.

• Nutritious, balanced meals in accordance with cultural preferences.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Engaging-communities-and-our-supply-c… 8/11
5/6/24, 2:45 PM Respecting human rights | ExxonMobil

• Means for residents to register grievances in a manner free from reprisal or

consequences.

• Opportunities and facilities for exercise, recreation, relaxation, and worship.

• Safe and comfortable living accommodations, without discrimination by

gender, race, origin or other applicable protected status.

In addition, we strive to foster an environment of understanding and tolerance

among our workforce to minimize cultural conflicts and reduce the risk of worker
unrest, disruption, or dissatisfaction due to perceptions of exclusion or
discrimination.
FOOTNOTES:

1. https://www.ipieca.org/.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Engaging-communities-and-our-supply-c… 9/11
5/6/24, 2:45 PM Respecting human rights | ExxonMobil

Engaging communities and our

supply chain
Respecting human rights

Managing socioeconomic impacts

Working with our global supply chain

Sustainability at ExxonMobil
Our approach to sustainability

Progressing environmental initiatives

Creating sustainable solutions

Engaging communities and our supply chain

Caring for our workforce

Build your own report

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Engaging-communities-and-our-supply-… 10/11
5/6/24, 2:45 PM Respecting human rights | ExxonMobil

Click here to build your own report 

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Engaging-communities-and-our-supply-… 11/11
5/6/24, 2:45 PM Managing socioeconomic impacts | ExxonMobil

Sustainability

Managing socioeconomic impacts

Report
Jan. 8, 2024

We are committed to being a good corporate citizen in the places we operate

worldwide. We maintain high ethical standards; obey applicable laws, rules, and
regulations; and respect local and national cultures. We are dedicated to running
safe and environmentally responsible operations. This is reinforced as a guiding
principle in our Standards of Business Conduct.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Engaging-communities-and-our-supply-ch… 1/8
5/6/24, 2:45 PM Managing socioeconomic impacts | ExxonMobil

United Nations Sustainable Development Goals related to this content.

Approach
Our Environment Policy and Protect Tomorrow. Today. guiding principle serve as
the foundation of our efforts, which are guided by a scientific understanding of the
environmental impacts of our operations. In addition, we often consult with
stakeholders at early stages of projects and during operations to understand the
social and economic needs of the communities in which we operate. We seek to
contribute to the social and economic progress of these communities and believe
that respecting human rights, managing our impacts on communities, and making
valued social investments are integral to the success of our business.

Our integrated socioeconomic management approach supports the early

identification of potential environmental and socioeconomic impacts, risks, and
opportunities (including those related to human rights), as well as the
comprehensive planning and effective implementation of measures and
advancements that avoid, reduce, or remedy impacts from our operations.

Core elements
The key socioeconomic elements of our integrated approach include:
identification and assessment of potential impacts and benefits; human
rights; community engagement and grievance management; community
health, safety and security; local economic development; land use,
resettlement and livelihood restoration; cultural heritage; and
Indigenous peoples. These elements are often interconnected and are
best managed in an integrated manner to develop effective approaches
to managing risks and opportunities in a broad range of settings.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Engaging-communities-and-our-supply-ch… 2/8
5/6/24, 2:45 PM Managing socioeconomic impacts | ExxonMobil

Impact identification and assessment

ExxonMobil’s projects and operations around the world
provide socioeconomic benefits within and beyond the
communities where we operate. While there are
inherent risks in any type of development or operation,
we seek to avoid those risks, reduce them to
acceptable levels, or remedy the impacts.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Engaging-communities-and-our-supply-ch… 3/8
5/6/24, 2:45 PM Managing socioeconomic impacts | ExxonMobil

Community engagement and grievance

management
We work collaboratively and transparently with local
communities to promote positive, long-term
relationships. We consult with local groups and
individuals regularly and seek to have our stakeholders
effectively represented as community concerns are
discussed and decisions are made.

Community health, safety and security

We integrate community health, safety, and security
into our impact assessments as a key component of
our socioeconomic management approach and plans.
Our Community Health, Safety, and Security plans
typically include identified risks, as well as mitigation
and management measures, and monitoring of
outcomes.

Local economic development

ExxonMobil works closely with local communities to
understand the unique needs of the areas where we
operate and to identify and help contribute to long-
term, positive local economic and social development.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Engaging-communities-and-our-supply-ch… 4/8
5/6/24, 2:45 PM Managing socioeconomic impacts | ExxonMobil

Land use, resettlement and livelihood

restoration
We respect property rights in the countries and
communities where we operate, and we seek to avoid
involuntary resettlement and to minimize the need for
voluntary resettlement through a disciplined site
selection process.

Indigenous peoples
In locations inhabited or historically used by Indigenous
peoples, we work with communities to respect their
cultures and customs. In addition, we support
employment initiatives and cultural heritage programs
through local content development and strategic
community investments.

Cultural heritage
We look for opportunities to help preserve cultural
heritage by managing the potential impacts of our
operations and by making culturally appropriate
community investments.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Engaging-communities-and-our-supply-ch… 5/8
5/6/24, 2:45 PM Managing socioeconomic impacts | ExxonMobil

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Engaging-communities-and-our-supply-ch… 6/8
5/6/24, 2:45 PM Managing socioeconomic impacts | ExxonMobil

Philanthropy and social contributions

ExxonMobil and the ExxonMobil Foundation’s contributions further
support our community efforts by providing additional resources to help
address strategic local priorities where we do business around the
world. We work with governments, other companies, and
nongovernmental organizations to help support local communities and
broader society in areas such as education, health, and the
environment. Our corporate and the ExxonMobil Foundation
contributions support a range of programs, including three key areas of
concentration: combating malaria, promoting education (in particular
STEM education), and supporting women’s economic empowerment.

Learn more about our efforts 

Engaging communities and our

supply chain
Respecting human rights

Managing socioeconomic impacts

Working with our global supply chain

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Engaging-communities-and-our-supply-ch… 7/8
5/6/24, 2:45 PM Managing socioeconomic impacts | ExxonMobil

Sustainability at ExxonMobil
Our approach to sustainability

Progressing environmental initiatives

Creating sustainable solutions

Engaging communities and our supply chain

Caring for our workforce

Build your own report

Click here to build your own report 

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Engaging-communities-and-our-supply-ch… 8/8
5/6/24, 2:45 PM Working with our global supply chain | ExxonMobil

Sustainability

Working with our global supply chain

Report
Jan. 8, 2024

We work to promote inclusive sourcing open to all, respecting human rights, and
working to reduce impacts to the environment in our supply chain, and we seek to
work with suppliers that share our commitment.

Our Supplier, Vendor and Contractor Expectations call for the operations and
business practices of our suppliers to be conducted in a manner consistent with
the International Labor Organization 1998 Declaration on Fundamental
Principles and Rights at Work (ILO Declaration) and the goals of the United
Nations Guiding Principles on Business and Human Rights (UNGPs). They also
communicate our expectation that our suppliers comply with all local laws and
regulations. To remain in good standing, our suppliers, vendors, and contractors
are expected to meet our stringent compliance, anti-corruption, conflict of interest,
safety, and other guidelines.

Managing our supply chain

We integrate sustainability-related elements into our supply chain stewardship,
purchasing processes, and systems. For example, we seek opportunities to support
responsible sourcing including identification of potential human rights impacts
within procurement category families. Updated on a regular basis, our
procurement platform includes environmental questions for our category
managers to consider and enhancements to increase awareness of local, diverse,
and small suppliers.

Not only do we review a potential supplier’s operational, technical, and financial

performance, but we also perform compliance due diligence. We use third-party
information to screen potential suppliers across compliance areas such as
sanctions, anti-corruption, and human trafficking.

Our due diligence process for identifying and assessing human rights risks focuses
on three factors: the supplier, the commodity being procured, and location.

Additional due diligence is applied when procuring goods and services involving a
significant amount of low-skilled, physical labor in countries ranked in the tiers
below Tier 1 of the Trafficking in Persons (TIP) Report published by the U.S.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Engaging-communities-and-our-supply-ch… 1/7
5/6/24, 2:45 PM Working with our global supply chain | ExxonMobil

Department of State. If a potential higher risk is identified, the potential suppliers

complete a questionnaire prior to contract award to assess whether they have the
policies or practices in place to address such risks and we review and assess the
responses prior to continuing with the contracting process. Training on human
rights risks in the supply chain is available to procurement professionals who
conduct supply chain due diligence. In addition, requests for quotations highlight
ExxonMobil’s expectation that the supplier shall:

• Comply with all applicable laws prohibiting the utilization of forced or

compulsory labor.

• Provide its employees with working conditions, including payment of wages

and benefits, which comply with all applicable laws.

• Ensure that its employees meet the legal employment age requirements in
the country of employment.

Our standard terms and conditions used by the Procurement function oblige
suppliers to:

• Comply with all applicable laws and regulations, which include those related
to employment, safety, security, health, and the environment.

• Impose similar terms and conditions on their subcontractors.

• Permit audits and allow access to office and work locations, documentation,
and personnel.

On an annual basis, we remind suppliers of our expectations on human rights and

other topics in our year-end letter, available in more than a dozen languages and
customized for specific regions. This letter reinforces our expectations that
suppliers conduct business in compliance with standards similar to our Standards
of Business Conduct and that they further comply with all applicable laws, rules,
and regulations. To provide a channel of communication to help our suppliers meet
our expectations, this year-end letter also includes ExxonMobil contact information
if the supplier has any questions or concerns as to the application of ExxonMobil’s
business standards.

We audit a select number of suppliers each year for contract compliance on

aspects including pricing, safety, drug and alcohol policy compliance, invoicing, and
travel expenses. Contracts may be subject to termination if the supplier is not
meeting our expectations.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Engaging-communities-and-our-supply-ch… 2/7
5/6/24, 2:45 PM Working with our global supply chain | ExxonMobil

Supplier diversity and inclusive sourcing

We promote awareness of inclusive sourcing options with local, diverse, and small
suppliers in order to increase competition and innovation while striving to make
positive impacts on communities. Where there is a lack of diverse, small, or local
suppliers, we work to build capabilities within our supply chain.

We purchase goods and services from local suppliers and build their capabilities
through local programs. This approach creates a competitive advantage for
ExxonMobil, providing us access to qualified and reliable local suppliers. It also helps
to build long-term, local economic capacity, to strengthen our relationships in the
community and to support the objectives of the related U.N. SDGs.

Inclusive sourcing supports the creation of new perspectives, ideas, and practices
that help our business grow. We strive to cultivate mutually beneficial relationships
that contribute to the growth of our diverse supplier base via outreach, business
development, and training programs.

To increase the number of women-owned businesses in our global supply chain,

we work with WEConnect International, an organization that identifies, educates,
registers, and certifies businesses outside the U.S. that are at least 51% owned,
managed, and controlled by one or more women.

We encourage U.S. businesses owned by traditionally underrepresented groups to

express their interest in becoming an ExxonMobil supplier by registering on U.S.
supplier diversity database. ExxonMobil works with organizations such as
the National Minority Supplier Development Council, the Women’s Business
Enterprise National Council, the National Lesbian, Gay, Bisexual and Transgender
Chamber of Commerce, and the National Veteran-Owned Business Association to
help identify and develop relationships with certified diverse suppliers in the U.S.
These diverse databases may be considered in identifying potential suppliers in
addition to other options.

This has been an important issue to us for decades, and we continue to increase
awareness of local, diverse, and small suppliers and provide opportunities for them
to be considered for procurement contracts with ExxonMobil.

SPOTLI GH T

Growth in Guyana

In Guyana, our affiliate is using a multi-tiered approach to build workforce and

supplier capabilities in conjunction with strategic investments in the community.
We’re collaborating with stakeholders to develop opportunities for the region’s

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Engaging-communities-and-our-supply-ch… 3/7
5/6/24, 2:45 PM Working with our global supply chain | ExxonMobil

people and businesses, working with the

local workforce and markets to develop a
competitive industrial base.

In 2022 alone, more than 1,500 Guyanese

vendors benefited from opportunities
within our supply chain, and more than
5,000 Guyanese workers supported our
activities there.

Through the Centre for Local Business Development, in 2021 we launched a

women entrepreneurship program called “Accelerate-Her” and continued this
program in 2022. It offered Guyanese women the opportunity to enable the
growth of small businesses through tailored workshops, access to one-on-one
business advisory services, mentoring, pitch development, and a strong and
supportive peer-learning environment for professional women. In addition, the
ExxonMobil Foundation’s Women Economic Opportunity Initiative collaborated
with the Cherie Blair Foundation for Women’s Road to Growth program and
Counterpart International’s Global Women in Management training course to
bolster the business skills of women entrepreneurs.

These efforts support the goals of the Greater Guyana Initiative, a collaboration
with ExxonMobil, Hess, and CNOOC to invest $100 million over a 10-year period
to support capacity development, sustainable economic diversification, and
healthy prosperous communities with Guyana, and for Guyana.

Human rights in our supply chain

We are committed to respecting human rights and expect the same of our
suppliers. Through our procurement processes and systems, we assess our direct
suppliers for potential human rights risks in the supply chain, with a focus on
workers’ rights, including safe and healthy working conditions, as well as the
elimination of forced labor, child labor, and discrimination.

Our Statement on Labor and the Workplace articulates our support of the
principles of the International Labor Organization (ILO) 1998 Declaration on
Fundamental Principles on Rights at Work, including the elimination of child labor,
forced labor, and workplace discrimination, the recognition of the right to freedom
of association and collective bargaining, and a safe and healthy workplace.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Engaging-communities-and-our-supply-ch… 4/7
5/6/24, 2:45 PM Working with our global supply chain | ExxonMobil

The standard terms and conditions used in our global procurement organization
include contract language that requires adherence to all applicable laws and
regulations. Furthermore, requests for quotes issued by our procurement staff
typically include clauses relating to the prohibition of forced or compulsory labor
and the payment of wages and benefits in accordance with local laws. Participants
in such bidding activities are required to adhere to those requirements.

Audits further support supply chain transparency and compliance with our
expectations. Our standard contracts typically require suppliers and all their
subcontractors to allow ExxonMobil to access all offices and work locations, and to
interview supplier and subcontractor personnel. We select a certain percentage of
suppliers annually for such audits, which include a compliance review on contract
provisions.

Human trafficking issues have received worldwide attention in recent years, and we
proactively communicate expectations and manage supply chain risks related to
human trafficking through our Standards of Business Conduct, our Statement on
Labor and the Workplace, and our due diligence processes. We also seek to
reduce the underlying conditions that lead to human trafficking by working to
engender economic growth and personal prosperity.

Environmental performance in our supply chain

We seek and aspire to work with innovative suppliers to reduce environmental
impacts in our supply chain and to engage with our suppliers to share our
expectations and identify opportunities. Our cost models and sourcing strategies
incorporate environmental considerations, such as reducing energy use and
incorporating recycled content into packaging materials. Environmental
performance is a consideration in our commercial decisions. Sustainability
questions are embedded in our sourcing platform and considered in bid evaluation
and supplier selection.

Whether through collaboration with our transportation and logistics suppliers or

through our focus on efficiently running our warehousing operations, these
actions continue to result in innovative ways to tackle everyday challenges in a cost-
effective way.

Performance and initiatives

In 2022, we surpassed $6.5 billion in annual spend with local suppliers in select
countries, and with diverse suppliers and small businesses globally. Of that, over $4
billion was spent with U.S. businesses owned by minorities, women, members of
the LGBTQ community, veterans, service-disabled veterans, people with disabilities,
and small businesses. Our supplier diversity efforts also continue to expand globally,
in accordance with applicable laws, and has resulted in over $600 million spent

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Engaging-communities-and-our-supply-ch… 5/7
5/6/24, 2:45 PM Working with our global supply chain | ExxonMobil

annually with businesses owned by Indigenous Peoples in Canada and women in

countries outside of the United States.1

FOOTNOTES:
1. Includes direct ExxonMobil spending on Tier 1 suppliers and a select group
of Tier 2 suppliers.

Engaging communities and our

supply chain
Respecting human rights

Managing socioeconomic impacts

Working with our global supply chain

Sustainability at ExxonMobil
Our approach to sustainability

Progressing environmental initiatives

Creating sustainable solutions

Engaging communities and our supply chain

Caring for our workforce

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Engaging-communities-and-our-supply-ch… 6/7
5/6/24, 2:45 PM Working with our global supply chain | ExxonMobil

Build your own report

Click here to build your own report 

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Engaging-communities-and-our-supply-ch… 7/7
5/6/24, 2:44 PM Caring for our workforce | ExxonMobil

Caring for our workforce

Our approach
Our ability to attract the world’s best talent is critical to our success. As
described in our Investing in People report, developing people and maintaining
a strong culture are core strategic priorities essential to achieving our long-term
objectives.

The people of ExxonMobil are our most important competitive advantage. Our
success, today and in the future, depends on the talent, ingenuity, and hard
work of our employees, fueled by pride in what we do and what we stand for.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Caring-for-our-workforce?disableCookieBa… 1/3
5/6/24, 2:44 PM Caring for our workforce | ExxonMobil

Leading in
personnel
safety
We have long embedded
safety into our culture,
reinforced by leadership,
standards, practices, and
experience.

Enhancing
process
safety
Safety is a core value and an
integral part of our culture.
Process Safety focuses on
managing the inherent
hazards associated with the
vast equipment and complex
processes that are essential to
our business.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Caring-for-our-workforce?disableCookieBa… 2/3
5/6/24, 2:44 PM Caring for our workforce | ExxonMobil

Executive Summary

Governance and executive compensation

Metrics and data

Content index

Build your own report

Click here to build your report 

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Caring-for-our-workforce?disableCookieBa… 3/3
5/6/24, 2:45 PM Leading in personnel safety | ExxonMobil

Sustainability

Leading in personnel safety

Report
Jan. 8, 2024

We have long embedded safety into our culture, reinforced by leadership,

standards, practices, and experience. We focus on an integrated framework of
systems, processes, tools, and behaviors aimed at eliminating injuries and fatalities.
We aspire to a working environment where Nobody Gets Hurt, and our Lost Time
Incident Rate (LTIR) demonstrates results from our top tier safety programs. In
2022, we maintained industry-leading personnel safety performance1 with a LTIR
of 0.02 per 200,000 work hours.2 We plan to build on this industry-leading
position.

United Nations Sustainable Development Goals related to this content.

Approach
We are committed to protecting the safety, security, and health of our employees,
our contractors, and others involved with our operations, as well as our customers
and the public. These commitments are documented in the Safety, Health,
Environment, and Product Safety policies found in our Standards of Business
Conduct.

Our work in this area is put into practice through Operations Integrity
Management System, or OIMS, which guides the daily activities of our global
workforce by setting clear expectations for managing the risks inherent to our
business. The OIMS framework goes beyond our employees to include third-party
providers and contractors. We include specific safety and health expectations in
contractual agreements.

We focus on continuous improvement through OIMS and leaders engage with

their teams to drive effective application. Each business unit has leadership
management systems and work processes aimed to consistently meet operations
objectives.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Caring-for-our-workforce/Leading-in-perso… 1/9
5/6/24, 2:45 PM Leading in personnel safety | ExxonMobil

Objectives
At ExxonMobil, care for our workforce is a core value and foundational to what we
do. Guided by Nobody Gets Hurt, we continue to drive process improvements that
support our safety vision, further enhancing our protocols and incorporating
international best practices. For example, our Incident Investigation Framework is
consistent with International Oil & Gas Products (IOGP) 621 and incorporates
enhanced investigation techniques and learning standards.

Beyond working to align our safety protocols with international best practices
whenever appropriate, ExxonMobil has implemented additional initiatives in recent
years focused on preventing serious injuries associated with lifting and rigging, as
well as working around mobile equipment. These include the development of the
Life Saving Rules & Actions program, designed for workers and leaders to verify
safeguards are in place before starting work and are maintained throughout
execution.

Management and application

We establish annual continuous improvement goals and objectives in a number of
areas, including:

• Personnel Safety Management System

• Life-saving rules and actions and Start Work Checks

• Human performance

• Culture of Health

• Training

Personnel Safety Management System

To support our work to reduce or eliminate fatalities and life-altering injuries, and
deliver industry-leading safety performance, a cross-functional team worked from
2021 through 2023 to develop a fully integrated, end-to-end safety standard to
accelerate the continuous improvement of safety company-wide. The team
engaged both internally and externally to discover, benchmark, and evaluate
developments in safety best practices, building upon our vast experience in
deploying safety systems in challenging environments around the world.

Our Personnel Safety Management System (PSMS) is designed to consistently

deliver “safety in the moment” by more effectively managing safeguards before and

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Caring-for-our-workforce/Leading-in-perso… 2/9
5/6/24, 2:45 PM Leading in personnel safety | ExxonMobil

during higher-risk work by:

• Proactively learning from work.

• Building and validating the safety capacity of our workforce.

• Driving effective safety engagement across interfaces.

• Leveraging the latest human performance concepts.

Reinforcing ExxonMobil’s core value of Care, the PSMS clarifies leadership

expectations at every level to teach people how to be safety leaders no matter
where they work. It establishes a streamlined personnel safety standard with
common language, processes, and tools, prioritizing our efforts by risk and life-
altering potential. Though repetition and coaching, we’re further building the safety
capacity of our workforce, with a renewed focus on the following objectives:

• Leadership effectiveness.

• Safeguard effectiveness.

• Absence of incidents.

Beginning in 2023, senior leadership is sponsoring and leading global deployment

of the PSMS at all company-owned and operated assets, including expanded
expectations for contract service providers. Rollout is expected to be complete by
the end of 2026.

The key components of PSMS include:

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Caring-for-our-workforce/Leading-in-perso… 3/9
5/6/24, 2:45 PM Leading in personnel safety | ExxonMobil

Life-saving rules and actions and Start Work Checks

A core component of PSMS is our Life Saving Rules & Actions (LSRAs). Our
employees and contractors work cooperatively to execute the LSRAs for routine
work activities that have higher risk elements.

We continue to enhance our LSRA program for higher-risk work activities, such as
confined-space entry, safe mechanical lifting, work around mobile equipment, and
working at heights. We work with employees and contractors to improve
understanding of LSRAs for these higher-risk activities and verify that safeguards
are in place before work begins – and throughout the process. Our LSRAs now
fully integrate the language of the IOGP Life Saving Rules program (IOGP Life
Saving Rules Report 459).

Our LSRA program is further supported by our recently deployed Start Work
Checks (SWCs). These checks are designed to help supervisors and crew leaders
lead interactive, detailed safeguard verification discussions with their crews for

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Caring-for-our-workforce/Leading-in-perso… 4/9
5/6/24, 2:45 PM Leading in personnel safety | ExxonMobil

work with higher risk elements before work even begins. Our SWC process is
aligned with concepts found in IOGP Start Work Checks Report 459-1.
Human performance
As part of our health and safety
program, we have expanded human
performance concepts into our
operations, including human
performance fluency training. Human
performance concepts have also been
integrated into the new Personnel Safety
Management System processes and
tools (e.g., pre-task briefing, job safety
analysis, task observation). Our approach
uses a five-part model to integrate
human performance concepts into OIMS
and the way we do business.

Culture of Health
To improve the health, quality of life, and productivity of employees, we provide a
comprehensive Culture of Health program. This program provides an environment
and resources that actively and consistently promote healthy and safe behaviors.
This includes encouraging biometric screening, periodic health surveys, access to
wellbeing champions, resources to help employees with resiliency, and more.

Training
Our global training system delivers safety, health, and security training to
employees. This training system is role-based, which assigns the required training
to the right people to build competencies based on their job roles. Once training is
assigned, the progress and completion is stewarded, including refresher training.
ExxonMobil-specific and other relevant training is shared with contractors and
others if required for them to perform contracted services within our facilities.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Caring-for-our-workforce/Leading-in-perso… 5/9
5/6/24, 2:45 PM Leading in personnel safety | ExxonMobil

Non-operated joint ventures also have access to certain training materials if they
have written agreements with ExxonMobil.

Performance
For 30 years, OIMS has maintained worldwide expectations for
addressing risks inherent to our business, including safety risks.
Through this disciplined approach, we continue to realize improved
personnel safety performance.

Our OIMS process meets the requirements of the ISO 14001/45001

standards as annually certified/attested by Lloyds Register Quality
Assurance. The ISO management system helps us further manage
potential environmental impacts, fulfill compliance obligations, and
identify opportunities for improvement.

We track injuries and illnesses for both employees and contractors,

including fatalities, fatal incident rate, lost time incident rate, and total
recordable incident rate. This safety performance can be found in
our Sustainability Performance Data Table.

From a Lost-Time Incident Rate (LTIR) perspective, our workforce

remains the safest among our industry peers, according to industry
benchmarks.3 As noted above, in 2022, we maintained industry-leading
personnel safety performance with a LTIR of 0.02 per 200,000 work
hours.4

Lost-Time Incident Rate (LTIR)1,2

Incidents per 200,000 work hours

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Caring-for-our-workforce/Leading-in-perso… 6/9
5/6/24, 2:45 PM Leading in personnel safety | ExxonMobil

0.175

ExxonMobil Workforce
0.15
Upstream Industry
Benchmark
0.125 U.S. Refining and Chemical
Industry Benchmark
0.1

0.075

0.05

0.025

0
2015 2020

FOOTNOTES:

1. Industry benchmark: The International Association of Oil & Gas Producers

(IOGP) safety performance indicators and the American Fuel &
Petrochemical Manufacturers (AFPM) Report of Occupational Injuries and
Illnesses are the Upstream and Downstream industry benchmarks,
respectively. IOGP safety performance indicators data converted from
incidents per 1,000,000 work hours to incidents per 200,000 work hours.
Performance data may include rounding. ExxonMobil analysis of data
published by AFPM and IOGP.

2. ExxonMobil full-year 2022 performance data as of August 18, 2023.

ExxonMobil workforce includes employees and contractors. Performance
data may include rounding. Incidents include injuries and illnesses.

3. Industry benchmark: The International Association of Oil & Gas Producers

(IOGP) safety performance indicators and the American Fuel &
Petrochemical Manufacturers (AFPM) Report of Occupational Injuries and
Illnesses are the Upstream and Downstream industry benchmarks,
respectively. IOGP safety performance indicators data converted from
incidents per 1,000,000 work hours to incidents per 200,000 work hours.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Caring-for-our-workforce/Leading-in-perso… 7/9
5/6/24, 2:45 PM Leading in personnel safety | ExxonMobil

Performance data may include rounding. ExxonMobil analysis of data

published by AFPM and IOGP.

4. ExxonMobil full-year 2022 performance data as of August 18, 2023.

ExxonMobil workforce includes employees and contractors. Performance
data may include rounding. Incidents include injuries and illnesses.

Caring for our workforce

Leading in personnel safety

Enhancing process safety

Sustainability at ExxonMobil
Our approach to sustainability

Progressing environmental initiatives

Creating sustainable solutions

Engaging communities and our supply chain

Caring for our workforce

Build your own report

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Caring-for-our-workforce/Leading-in-perso… 8/9
5/6/24, 2:45 PM Leading in personnel safety | ExxonMobil

Click here to build your own report 

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Caring-for-our-workforce/Leading-in-perso… 9/9
5/6/24, 2:44 PM Enhancing process safety | ExxonMobil

Sustainability

Enhancing process safety

Report
Jan. 8, 2024

United Nations Sustainable Development Goals related to this content.

Safety is a core value and an integral part of our culture. Process Safety focuses on
managing the inherent hazards associated with the vast equipment and complex
processes that are essential to our business. The primary purpose is to keep
hydrocarbons, chemicals, and process water controlled and safely managed
through all phases of our operations. Process safety events can potentially impact
the workforce, the community, and the environment. Because of this, we set high
expectations for ourselves. Everyone involved in our operations plays a role in
driving process safety excellence. We are now in the fourth year of a corporate-
wide Process Safety initiative. From 2018 through 2022, we achieved a 25%
reduction in Tier 1 process safety events (those of greatest consequence).

Approach
To help protect our employees, contractors, communities where we work, and the
environment, ExxonMobil uses a proactive, disciplined approach to managing risks
inherent to our operations. Our Operations Integrity Management System
(OIMS) serves as the foundation for managing process safety risks and establishes
clear expectations. The safeguards built into OIMS are integral to how we design,
operate, and maintain our facilities. We work to verify and rigorously manage these
safeguards through maintenance, inspection, operations, competency
demonstrations, and emergency preparedness drills. As part of OIMS, ExxonMobil
monitors the performance of joint ventures and assets operated by others
consistent with our expectations and encourages them to consider improvements
as appropriate.

As part of our approach to enterprise risk management, higher-consequence

process safety risks and risk management strategies are stewarded by the
company’s Management Committee. Our Upstream, Product Solutions, and Low

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Caring-for-our-workforce/Enhancing-proce… 1/8
5/6/24, 2:44 PM Enhancing process safety | ExxonMobil

Carbon Solutions companies develop and execute these strategies with centralized
support from ExxonMobil Technology and Engineering Company and the
ExxonMobil Global Operations & Sustainability organization.

Objective
Our primary objective is to help protect our people, communities, and the
environment by successfully managing and enhancing process safety.

Management and application

To help drive further improvements in process safety, we recently introduced our
Enhancing Process Safety Program and updated our OIMS framework with new
and enhanced expectations related to leadership, scenario management, human
performance principles, critical task execution, and event learning.

Effective scenario management is key to preventing and mitigating process safety

events. This includes understanding major hazards and associated scenarios, as
well as verifying, maintaining, and improving, as appropriate, critical safeguards.
People are our most important safeguard, and our enhanced human performance
principles provide mechanisms for employees to ask for help, pause work if
needed, and report issues to management. In addition, our open-door
communication procedures provide avenues for anonymous reporting of employee
concerns.

We collaborate with our peers and industry associations to share findings from
process safety events. For example, we are a founding member and remain actively
engaged in the Advancing Process Safety Initiative, a collaborative effort between
the American Fuel and Petrochemical Manufacturers (AFPM) and the American
Petroleum Institute (API). The initiative aims to improve process safety performance
across the industry by sharing experiences and knowledge about events, hazard
identification metrics, and proven practices.
Performance
ExxonMobil applies industry standards, including the API Recommended Practice
754 and the International Association of Oil & Gas Producers (IOGP) No. 456
Recommended Practice. We use process safety indicators to classify and track
incidents by severity from Tier 1 to Tier 3. We report process safety events to
several organizations each year including API, AFPM, IOGP, and the American
Chemistry Council as a way to collectively identify and learn from industry trends.

Our Enhancing Process Safety Program has helped reduce Tier 1 safety events.
From 2018 through 2022, we achieved a 25% reduction in Tier 1 process safety
events (those of greatest consequence). Each event is analyzed through our

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Caring-for-our-workforce/Enhancing-proce… 2/8
5/6/24, 2:44 PM Enhancing process safety | ExxonMobil

“Learning from Incidents” process and

corrective actions were identified to
guide further improvement.

Workplace security
Our robust security measures are
designed to protect our personnel,
including senior executives, and facilities
from threats. Our security programs are
risk-based, flexible, and responsive to the
environments in which we operate, and
they comply with applicable regulations.

Facilities undergo periodic security

reviews to address potential threats.
Each assessment considers geographic
location, the community, criminal activity,
and the current political climate. We monitor local conditions and maintain detailed
security preparedness plans, such as emergency response, evacuation and intruder
response, bomb threat, and active shooter response plans. We train employees
who travel to and live in higher-risk countries on personal safety in challenging
security environments. Our security personnel work to improve our risk
management methodologies, threat-assessment capabilities, and technical security
management processes through drills, training programs, and industry forums.

Emergency preparedness
ExxonMobil is prepared to respond to a wide array of emergency events, including
natural disasters, pandemics and operational incidents. Each ExxonMobil facility has
access to trained responders and resources. Centralized and cross-functional
teams develop and practice emergency response tactics through incident
management teams and emergency support groups around the world, which
enables us to provide a robust response in emergency situations to help protect
people, the environment and our communities.

In 2021, our Regional Response Team (RRT) demonstrated its “Readiness to

Respond” capabilities under pandemic circumstances by conducting an innovative
exercise that simulated a global response to a potential real-life oil spill event.
Approximately 300 RRT personnel and response partners from more than 35
countries were involved in a continuous 28-hour follow-the-sun event, with face-
to-face hubs in Singapore, the U.K., Prague, and Houston, along with virtual
support globally. Exercises like this help support our objective to be prepared and
ready to respond.

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Caring-for-our-workforce/Enhancing-proce… 3/8
5/6/24, 2:44 PM Enhancing process safety | ExxonMobil

Managing spills
At ExxonMobil, we develop products that
are critical to global prosperity and
quality of life, and we recognize this
comes with a certain level of risk. We are
committed to the prevention, mitigation,
and elimination of spills from our
operations and having the processes,
resources, and people in place to
respond to incidents, however unlikely
they are to occur.

Our employees are trained to have a

zero-spill mindset, and our facilities are
designed and operated with the objective
to prevent unplanned releases from
entering the environment and causing
adverse effects. We also seek to implement best practices derived from our own
research and industry collaborations to continually reduce the number of spills.

Prevention
Our Spill Prevention Program establishes corporate-wide procedures for
inspecting and maintaining equipment, training operators, and conducting practice
drills.

Our program is focused on the elimination of all spill types, using overarching
principles of internal frameworks as described by our Operations Integrity
Management System (OIMS) to address a wide range of scenarios, considering
human and non-human factors that could potentially lead to a spill. At our
refineries, for example, following enhancements to our human factor approach, we
developed a best practice guide that details 17 high-risk elements and the
procedures to mitigate them. This has contributed to a 44% reduction in spills from
2016 to 2022.

Our comprehensive integrity-management programs also oversee the

transportation of millions of barrels of petroleum and chemical products over
thousands of miles of pipeline around the world. For example, our affiliate in the
U.S. regularly monitors and tests the integrity of our pipelines, detecting corrosion
and other integrity concerns, through the deployment of ground and air patrols,
implementation of state-of-the-art systems, alarms, and other techniques to
continuously control and monitor pipeline routes.

Response
We focus on readiness, so that if a spill does occur, we can conduct a rapid,
comprehensive response to minimize impact on people and the environment. Our

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Caring-for-our-workforce/Enhancing-proce… 4/8
5/6/24, 2:44 PM Enhancing process safety | ExxonMobil

RRTs include employees from more than 30 countries, with subject matter experts,
technical experts, and experienced responders from business lines and functions
across the company. And our spill response research program is an industry-
leading in-house program with a focus on cold-water and remote locations that
also applies to local or surface spills.

Each site conducts emergency drills in accordance with regulatory requirements or

management guidelines, ranging from “desktop” exercises to full-scale field drills.
Annually, we conduct comprehensive multiday drills at sites around the world,
involving emergency response teams and hundreds of employees, contractors, and
specialists. Participants run through realistic, higher-consequence scenarios and
interact with local authorities and agencies.

In May 2023, for example, the RRT worked with employees to assess and enhance
Esso Exploration Angola’s incident management team’s ability to respond quickly
and effectively. In total, 245 people were involved in the drill, from 22 countries,
including more than 20 people from NGOs or mutual aid partners. Visits and
meetings with the Angolan Minister of Mineral Resources and Petroleum and the
Secretary of State, as well as Sea Alarm Foundation, The Global Oiled Wildlife
Response System (GOWRS) project, and Oil Spill Response Ltd. were all
integrated in the response. The Global Initiative for West, Central and Southern
Africa facilitated engagement with the Angolan minister around the spill’s impact
and potential transboundary issues. We also integrated wildlife response into the
process, promising to provide a foundational element within our oil contingency
plan for other sites to emulate.

Collaboration and research

Through a variety of collaborations and associations, ExxonMobil works with
others in our industry to share best practices, improve capabilities, and facilitate
global spill response and management. These include:

• Australian Marine Oil Spill Center, focused on rapid containment and

recovery of all oil types along the Australian coastline.

• Marine Spill Response Corporation, the largest dedicated oil spill and
emergency response organization in the U.S., providing access to their
STARs network of specially trained contractors in approximately 250
locations nationwide.

• Marine Well Containment Company, a Houston-area, not-for-profit focused

on deepwater well containment response in the U.S. Gulf of Mexico.
ExxonMobil is a founding member.

• Oil Spill Global Response Network, global collaboration among oil response
companies to provide centers of expertise for spill preparedness, response,

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Caring-for-our-workforce/Enhancing-proce… 5/8
5/6/24, 2:44 PM Enhancing process safety | ExxonMobil

and recovery.

• Oil Spill Response Limited, an industry-owned spill-response cooperative

with members representing more than two-thirds of the world’s oil
production, and their recently launched Global Oiled Wildlife Response
Service.

• Western Canada Spill Services Ltd., which supplements member companies’

programs with additional spill response training and equipment.

• Oil Spill Combat Team, the largest spill response center in Indonesia.

• Eastern Canada Response Corporation, which provides services and

equipment to ships and oil-handling facilities under Canadian law.

• Multi-Partner Research Initiative, bringing together government agencies,

academia, response organizations, oil companies, Indigenous communities
and other experts worldwide.

Our oil spill response research program was initiated more than half a century ago
and remains unique in the industry. We share and build upon our knowledge by
working with governments, academia, and others, pursuing innovative solutions
and advancing scientific understanding of spill response through dozens of
collaborations. Research currently underway includes potential development of
quick-sealing polymers to rapidly close leaks, enhanced experimental techniques to
test new solutions, next-generation dispersants, an autonomous jet ski to detect
and monitor spills, and more.

Cybersecurity Image

As cybersecurity risks continue to evolve, our multilayered approach to preventing

and mitigating the risks of cyberattacks helps protect us against business
disruptions and threats that could significantly affect our data, facilities, operations,
or the safety and privacy of our people.

Attacks against other global companies in recent years highlight the need for
robust cybersecurity measures at all companies. Supported by our corporate
polices and standards, ExxonMobil’s overall program is designed by analyzing
threats and implementing risk-based tools, policies, and architectures.

We leverage industry standard frameworks, including the NIST Cybersecurity

Framework, to identify potential gaps in our defenses, and we work with
independent third parties to help test and evaluate the strength of our systems and
processes through:

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Caring-for-our-workforce/Enhancing-proce… 6/8
5/6/24, 2:44 PM Enhancing process safety | ExxonMobil

Data protection and security

We have comprehensive programs designed to protect the integrity and privacy of
personal, corporate, and customer data. With respect to the handling of personal
data, our data privacy program is designed to process such information, including
that of customers, vendors, suppliers, and employees, in a manner consistent with
applicable laws. ExxonMobil’s data privacy program includes a code of conduct and
data privacy practices which encompass common principles (e.g., purpose
limitation, transparency, data security, data quality, and data minimization) and are
designed to provide simplified and consistent guidance to meet global data privacy
requirements.

Training and business continuity

Awareness remains one of our key defenses, and cybersecurity education is a
priority for ExxonMobil. We perform annual cybersecurity awareness training for
our personnel and conduct routine testing of cybersecurity awareness, including
ongoing mock phishing exercises, to help individuals identify and respond to
cybersecurity risks and reinforce safe behaviors.

In addition to promoting safe behaviors, we manage business continuity as a key

component of our Controls and Operations Integrity Management Systems. The
company has developed and sustained business continuity plans (BCPs), with a
suite of enablers to be activated in the event of a major cyber-attack.

Our cyber BCPs are regularly reviewed for compliance, performance, and potential
improvements. In addition, periodic drills are conducted to keep pace with this
evolving space and to evaluate our ability to maintain safe operations for critical
business units.

Caring for our workforce

Leading in personnel safety

Enhancing process safety

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Caring-for-our-workforce/Enhancing-proce… 7/8
5/6/24, 2:44 PM Enhancing process safety | ExxonMobil

Sustainability at ExxonMobil
Our approach to sustainability

Progressing environmental initiatives

Creating sustainable solutions

Engaging communities and our supply chain

Caring for our workforce

Build your own report

Click here to build your own report 

https://corporate.exxonmobil.com/en/Sustainability-and-reports/Sustainability/Caring-for-our-workforce/Enhancing-proce… 8/8