Assessment methodology and results

In recent years due in part to our efforts, several trade associations we have had leadership positions in, such as the American Petroleum Institute and U.S. Chamber of Commerce, have taken positions more closely aligned with our views on climate change.

Where we have not been able to make progress, and when an organization is no longer a constructive participant in the development and advancement of effective climate policy, we have withdrawn our membership. This was the case with the American Legislative Exchange Council (ALEC) in 2018.

In the preparation of this assessment, ExxonMobil has:

• Undertaken a global review of trade association memberships.
• Identified those organizations that are active and influential in the discussion and development of climate policy.
• Reviewed the climate-related statements and positions of those trade associations.
• Assessed their policy positions and advocacy actions as aligned, partially aligned, or misaligned with helping society achieve its ambition for a net-zero future.

For the purposes of this assessment, in order to evaluate whether these organizations are aligned with helping achieve a net-zero future, we reviewed and assessed a number of factors:

• Their publicly stated policy positions to determine if they had acknowledged the risks of climate change and expressed support for the goals of the Paris Agreement, if they were silent on the topic, or if they failed to engage constructively in the development of climate policy.
• The statements and policy principles of each organization, to determine their positions related to limiting average global warming to well below 2 degrees Celsius.
• Their principles and policy positions for public support to incentivize emission reductions.
• Their advocacy actions on specific climate policy proposals (e.g., methane regulation, low carbon fuel standards), as well as internal discussions and deliberations amongst their membership on current and prospective policy positions.

For those organizations assessed as partially aligned or misaligned, ExxonMobil has:

• Identified specific areas of partial/misalignment
• Constructively engaged with each organization to fully understand basis and rationale for area(s) of misalignment, with a view to enhancing alignment.
• Ensured ExxonMobil’s position is understood by the organization if/when misaligned positions are adopted.
• Maintained active engagement to identify aligned advocacy and policy development opportunities.

Going forward, ExxonMobil will:

• Monitor internal developments and external statements to assess commitment to constructive engagement.
• Annually review and publicly report alignment classifications.
• Disclose when an organization is no longer determined a constructive participant in climate policy development and the resulting action taken.

Criteria for inclusion

Of the hundreds of industry and trade associations around the globe of which ExxonMobil and its affiliates/subsidiaries are members, our assessment determined that less than 5 percent of these organizations are active on climate-related policy. Organizations not actively involved in the development of climate policy are not included in this report.

While the overwhelming majority of our memberships are focused on non-climate related work, our assessment identified 51 organizations that are active and potentially influential in the
discussion and development of climate policy in 2021.

It is our expectation that each of these organizations are constructive participants in the discussion and development of climate policy, and are helping society to achieve a net-zero future.

Summary of assessment findings

Of the 51 organizations assessed, we found 47 aligned with supporting policies that will help society achieve its ambition for a net-zero future, two organizations are partially aligned; and two are misaligned. Below provides a summary of the assessment results:

Summary of assessment

Louisiana Mid-Continent Oil and Gas Association (LMOGA)
Membership of relevant board/executive committees: Board of Directors; Executive Committee; Carbon Committee; Environmental Managers Committee; Legislative Committee.

LMOGA supports the regulation of methane emission reductions, is an active supporter of CCUS technology, and has publicly stated their support for smart, sound energy transition policies, but stops short of supporting the goals of the Paris Agreement, having policy principles or statements relating to limiting global warming to well below 2 degrees Celsius, or advocating for specific policies to reduce greenhouse gas emissions. LMOGA is an active and supportive participant on the Louisiana Governor’s Climate Initiatives Task Force, which (among other duties) has been tasked with making recommendations to reduce greenhouse gas emissions originating in Louisiana to zero by 2050. ExxonMobil will continue to work with LMOGA in 2022 to develop more fulsome climate policy principles, and active advocacy support for policies to reduce greenhouse gas emissions.

Texas Oil and Gas Association (TXOGA)
Membership of relevant board/executive committees: Executive Committee; Board of Directors; Legislative Committee.

TXOGA has publicly stated that action is required on climate change, and has voiced its support for some climate-related policies, such as carbon capture and storage, zero routine flaring and energy efficiency. However, TXOGA has not expressed support for the goals of the Paris Agreement, nor developed policy principles or statements relating to limiting global warming to well below 2 degrees Celsius, nor supported specific policies to reduce greenhouse gas emissions. We will continue to work with TXOGA and its member companies to develop additional climate-related policy positions and advocacy efforts, in order to help society achieve a netzero future.

Summary of assessment

American Fuel and Petrochemical Manufacturers (AFPM)
Membership of relevant board/executive committees: Executive Committee; Board of Directors; Climate Change Legal Taskforce; Climate Work Group; Environment Committee; Federal and State Government Relations Committee; Issues Committee; Legal Committee; Safety and Health Committee.

ExxonMobil representatives on the Executive Committee, Board of Directors, and other relevant committees have worked closely with AFPM leadership and other member companies to strengthen the organization’s alignment with helping achieve the goals of the Paris Agreement at the lowest cost to society. While there has been significant internal progress, this has yet to translate into advocacy to support meaningful greenhouse gas emission reductions. Further, AFPM has advocated against fuel efficiency and low carbon fuel standards, without proposing viable policy alternatives to progress emission reductions in the refining and transport sector. ExxonMobil values AFPM’s credible and authoritative voice in the ongoing development of process safety policies, and derives benefits from their advocacy on this and other issues specific to the refining and petrochemical sectors. In 2022, we will continue to actively work to encourage AFPM to support climate-related policies that help society achieve a net-zero future. Ongoing membership will be reassessed in 2022, and informed by progress on the policy positions outlined above and other areas of work.

Independent Petroleum Association of America (IPAA)
Membership of relevant board/executive committees: None. 

IPAA supports global cooperation on climate-related policies and supports well-reasoned, cost effective steps to limit the generation of greenhouse gas emissions. The IPAA also endorses the work of The Environmental Partnership, a voluntary program for oil and natural gas industry participants that are committed to continuously improving the industry’s environmental performance. However, IPAA does not have any climate-related policy principles, nor have they supported emission reduction policies, and have advocated against strong methane regulations. ExxonMobil will continue membership of IPAA in 2022, and encourage IPAA to develop additional climate-related policy positions, in order to help achieve society’s ambition for a net-zero future. Our continued membership will be reassessed and informed by progress on the policy positions outlined above and other areas of work.