Worldwide dialogue

Engagement takes many forms and includes in-depth conversations with governments, NGOs, shareholders, customers, suppliers, employees, and others. The outcome of these dialogues is described below in three examples of our efforts to enhance corporate policies and practices, address environmental issues, and respond to concerns in the communities where we operate.

Using stakeholder dialogue outcomes to improve corporate governance
We engage with institutional and individual shareholders, socially responsible investors, and pension funds to discuss our performance and approach to corporate governance. Over time, the following policies and practices evolved through engagement:

• Adopted a Confidential Voting Policy;
• Implemented Director Resignation Guidelines in support of majority vote principles;
• Approved policies against “Poison Pills” (i.e., strategies to make a hostile takeover of the company prohibitively expensive);
• Adopted a policy against option re-pricing;
• Enhanced Incentive Pay Recoupment Guidelines;
• Established procedures, for public use, to communicate with independent directors;
• Enhanced the role of the Presiding Director;
• Improved our Compensation Discussion and Analysis disclosure in the proxy; and,
• Conducted conference calls in 2008 to engage on environment, human rights, and corporate governance.

Addressing environmental challenges in the United Arab Emirates
In the United Arab Emirates, population growth and accelerated economic development are leading to a rapid increase in energy consumption. While the country’s per capita energy consumption and greenhouse gas (GHG) emissions rates remain among the highest in the world, leaders are taking a proactive approach to addressing future energy challenges. In partnership with ExxonMobil and others, the Abu Dhabi National Oil Company has greatly reduced gas flaring and has reduced GHG emissions per barrel produced to among the lowest in the industry.

In consultation with local businesses, community groups, and government leaders, ExxonMobil identified energy efficiency improvements as a significant opportunity. Encouraged by positive stakeholder feedback, we established a partnership with the Emirates Foundation, a leading philanthropic organization in the United Arab Emirates. We committed $5 million over three years, with a particular focus on the Foundation’s environmental programs. ExxonMobil will serve on the Foundation’s Environment Program Council and is collaborating on a major project to improve the country’s energy conservation and efficiency.

Responding to community expectations in Thailand
As part of any major new project, we conduct Environmental, Socioeconomic, and Health Impact Assessments (ESHIAs) to address possible environmental, socioeconomic, and health concerns. In Thailand, we coordinated site visits with the leaders of 22 communities within a 5-kilometer radius of our project to understand their concerns. We held additional sessions with the 10 communities closest to the project.

Feedback indicated that the communities have two basic expectations: 1) to be informed about environmental planning, monitoring results, project activities, and progress and 2) to improve their economic circumstances through skills development.

We are addressing these issues through an integrated external affairs plan for 2009, which includes a quarterly newsletter for local communities, annual site visits, opinion surveys, and participation in community activities. Through our Educating Women and Girls Initiative, we are exploring options to develop skills training centers as well as other community investment projects as part of our national content development strategy. Our engagement efforts have enhanced the relationship between project managers and the community.