Exxon Mobil Corporation · NYSE:XOM
Exxon Mobil — Shareholder Meeting (April 2022)
28 slides from Exxon Mobil's shareholder meeting presentation, Apr 19, 2022
Slide 1: Strengthening Our Industry Leadership: Shareholder Engagement
S T R E N G T H E N I N G O U R I N D U S T R Y L E A D E R S H I P S H A R E H O L D E R E N G A G E M E N T April 2022
Slide 2: Table of Contents
LAW (D. Kern) TO BE UPDATED TABLE OF CONTENTS 03 Highlights 23 - 28 Supplemental Information 04 Create Sustainable Solutions that Improve Quality of Life and meet Society’s Evolving Needs 05 Driving Toward a Net-Zero Future 06 Reducing GHG Emissions while Meeting Society’s Essential Needs 07 Positio
Slide 3: Highlights
HIGHLIGHTS A D V A N C I N G C L I M A T E S O L U T I O N S 2 0 2 1 F I N A N C I A L P E R F O R M A N C E o Established ExxonMobil Low Carbon Solutions business in February 2021 o Earnings of $23 billion o Expanded our global CCS of potential opportunities, spanning across U.S., o Cash flow from
Slide 4: Create Sustainable Solutions that Improve Quality of Life and Meet Society's Evolving Needs
CREATE SUSTAINABLE SOLUTIONS THAT IMPROVE QUALITY OF LIFE AND MEET SOCIETY’S EVOLVING NEEDS S T R A T E G I C P R I O R I T I E S Leading performance Industry leader in operating and financial performance Value through win-win solutions for our customers, partners, and broader stakeholders Essential
Slide 5: Driving Toward a Net-Zero Future
DRIVING TOWARD A NET -ZERO FUTURE 2 0 3 0 E M I S S I O N - R E D U C T I O N P L A N S * 2 0 5 0 N E T - Z E R O A M B I T I O N * * o 20-30% reduction in corporate-wide GHG intensity o Aim to achieve net-zero emissions from our operated assets by 2050 o Corporate-wide absolute reduction of approx.
Slide 6: Reducing GHG Emissions while Meeting Society's Essential Needs
REDUCING GHG EMISSIONS WHILE MEETING SOCIETY’S ESSENTIAL NEEDS L I F E C Y C L E A S S E S S M E N T ( L C A ) P R O D U C T S T O H E L P C U S T O M E R S R E D U C E T H E I R E M I S S I O N S o To evaluate impact on society’s overall GHG emissions, it is critical to consider: o Sustainable solu
Slide 7: Positioning for a Lower-Emissions Future
POSITIONING FOR A LOWER -EMISSIONS FUTURE L A R G E M A R K E T S W I T H H I G H - R E T U R N P O T E N T I A L > $ 1 5 B I L L I O N I N L O W E R - E M I S S I O N I N V E S T M E N T S 2 0 2 2 - 2027 o All energy sources remain important across Paris-aligned scenarios o Focused initially on CCS
Slide 8: Resilient Under Net-Zero Pathways; IEA NZE Scenario Analysis
RESILIENT UNDER NET -ZERO PATHWAYS 1 I E A N Z E S C E N A R I O A N A L Y S I S V A L I D A T I N G S T R A T E G Y R E S I L I E N C Y 1 ExxonMobil operating cash flow potential modeled under IEA NZE 2050 scenario Trailing 5-year averages, nominal dollars o Our strategy is resilient when tested ag
Slide 9: Plastics and the Circular Economy
PLASTICS AND THE CIRCULAR ECONOMY P L A S T I C S E N A B L E M O D E R N L I F E P L A S T I C W A S T E A D V A N C E D R E C Y C L I N G P L A N S o Superior performance and life cycle sustainability benefits o Plan to build capacity for approx. 500kmt per year by end of 2026 o Support good healt
Slide 10: Advocating for Sound Policies
ADVOCATING FOR SOUND POLICIES D U R A B L E A N D P R E D I C T A B L E P O L I C I E S C A N : o Accelerate deployment of critical lower-emissions technologies at the pace and scale required to support a net-zero future o Help achieve the Paris Agreement’s goals at the lowest cost to society o Prov
Slide 11: Political Contributions and Lobbying
POLITICAL CONTRIBUTIONS AND LOBBYING L O B B Y I N G A N D A D V O C A C Y C L I M A T E L O B B Y I N G o We engage in lobbying in the United States at the federal and state levels to advocate o Recognizing that sound government policies are required and can act as an accelerator for our positions
Slide 12: Independent and Diverse Board
INDEPENDENT AND DIVERSE BOARD F O C U S E D O N G R O W I N G L O N G T E R M S H A R E H O L D E R V A L U E B O A R D O V E R S I G H T o Company’s strategy and planning MICHAEL J. ANGELAKIS SUSAN K. AVERY ANGELA F. BRALY o Business-related risks and opportunities o Chairman & CEO, Atairos Group I
Slide 13: Executive Compensation
EXECUTIVE COMPENSATION C O M P E N S A T I O N P R O G R A M D E S I G N 1 C E O C O M P E N S A T I O N B E N C H M A R K I N G o Business involves large investments that create shareholder value over long periods of time, requires executives to maintain o Overall level of CEO pay down ~40% in 2020
Slide 14: Investing in People
INVESTING IN PEOPLE S T R A T E G I C T A L E N T O B J E C T I V E G O A L S H I G H L I G H T S We have a diverse and engaged workforce and provide every individual unrivalled A place to thrive• Strong culture underpins our success, enabled by strong focus on leadership and key opportunities for p
Slide 15: 2021 Accomplishments
2021 ACCOMPLISHMENTS Sustained best-ever workforce safety and reliability performance 1 Achieved 2025 GHG emission–reduction plans in 2021 and established more aggressive plans for 2030 Established LCS business to commercialize portfolio of CCS, hydrogen, and biofuels opportunities Maintained capita
Slide 16: 2021 Financial Performance
2021 FINANCIAL PERFORMANCE E A R N I N G S S T R U C T U R A L C O S T C A P E X D I S C I P L I N E B R E A K E V E N increased to savings of with investment of lowered to 1 2 $23 billion $2 billion $17 billion $41 /bbl C A S H F L O W F R O M D E B T D I V I D E N D S H A R E R E P U R C H A S E O
Slide 17: Board Recommends Voting For Items 1-3
BOARD RECOMMENDS VOTING FOR ITEMS 1-3 F O R I T E M 1 : E L E C T I O N O F 1 1 D I R E C T O R S o The Board refreshment process is led by the Board Affairs Committee, which incorporates the perspectives of external experts and shareholders. o The Committee seeks a diverse slate of experienced and
Slide 18: Board Recommends Voting Against Items 4-10
BOARD RECOMMENDS VOTING AGAINST ITEMS 4-10 A G A I N S T I T E M 4 : R E M O V E E X E C U T I V E P E R Q U I S I T E S o Executives participate in the same programs as other U.S. employees. o Our compensation and benefits programs are designed to support the Company’s core principles and business
Slide 19: Board Recommends Voting Against Items 4-10
BOARD RECOMMENDS VOTING AGAINST ITEMS 4-10 A G A I N S T I T E M 6 : R E D U C E C O M P A N Y E M I S S I O N S A N D H Y D R O C A R B O N S A L E S o The Board supports the Company’s approach towards net-zero: 1. Measuring, monitoring, and managing reductions of the Company’s emissions. 2. Provid
Slide 20: Board Recommends Voting Against Items 4-10
BOARD RECOMMENDS VOTING AGAINST ITEMS 4-10 A G A I N S T I T E M 8 : R E P O R T O N S C E N A R I O A N A L Y S I S o The information requested by the proposal is included in the recently published Advancing Climate Solutions report that contains an analysis of the Company’s business and investment
Slide 21: Board Recommends Voting Against Items 4-10
BOARD RECOMMENDS VOTING AGAINST ITEMS 4-10 A G A I N S T I T E M 1 0 : R E P O R T O N P O L I T I C A L C O N T R I B U T I O N S o ExxonMobil is committed to full compliance with relevant laws and regulations, and publicly shares its policy on corporate political spending and its direct contributi
Slide 22: ExxonMobil
ExonMobil
Slide 23: Supplemental Information: Definitions
SUPPLEMENTAL INFORMATION D E F I N I T I O N S approx.: approximately MOU: memorandum of understanding ACS: Advancing Climate Solutions – 2022 Progress Report Mta: metric tonnes per annum ASM: annual shareholders meeting NEO: Named Executive Officers CCS: carbon capture and storage TDC: total direct
Slide 24: Supplemental Information: Footnotes
SUPPLEMENTAL INFORMATION F O O T N O T E S Page 06 (REDUCING GHG EMISSIONS WHILE MEETING SOCIETY’S ESSENTIAL NEEDS) Page 03 (HIGHLIGHTS) 1. ExxonMobil’s proprietary portfolio life-cycle model estimates elements of Scope 1, 2, and 3 GHG emissions for 1. Scope 1 and 2 GHG emissions from ExxonMobil ope
Slide 25: Supplemental Information: Footnotes
SUPPLEMENTAL INFORMATION F O O T N O T E S Page 06, continued (REDUCING GHG EMISSIONS WHILE MEETING SOCIETY’S ESSENTIAL NEEDS) (note 8.1 below) 12. Based on ExxonMobil analysis when compared to conventional mineral oils. 7. In the chemical sector, a study concluded that plastic packaging in the Unit
Slide 26: Supplemental Information: Footnotes
SUPPLEMENTAL INFORMATION F O O T N O T E S Page 12 (INDEPENDENT AND DIVERSE BOARD) Page 08 (RESILIENT UNDER NET-ZERO PATHWAYS; IEA NZE SCENARIO ANALYSIS) 1. K.C. Frazier serves as Lead Director and is expected to remain in the position through the ASM. The Board 1. Modeling assumptions include: (1)
Slide 27: Supplemental Information: Definitions
SUPPLEMENTAL INFORMATION D E F I N I T I O N S Structural cost reductions (also structural cost savings, structural efficiencies, structural savings, structural cost improvement). Structural cost reductions describe decreases in the below expenses as a result of operational efficiencies, workforce r
Slide 28: Supplemental Information: Cautionary Statement
SUPPLEMENTAL INFORMATION C A U T I O N A R Y S T A T E M E N T Outlooks; projections; plans; ambitions; estimates; and descriptions of strategic plans and objectives are forward-looking statements. Similarly, emission-reduction roadmaps are dependent on future market factors, such as continued techn