ExxonMobil Corporation is a multinational gas and oil corporation. The organization, an American one, has its headquarters based in Irving, Texas. It is a descendant of Standard Oil as have been owned by John Rockefeller. The organization was formed as a merger in the year 1999 by Mobil and Exxon. Some of the primary brands of the organization include brands to include ExxonMobil Chemical, Mobil, Esso, and Exxon. The organization has been considered as one of the world’s largest in terms of revenue. This is accruing from the fact that from the year 1996 to the year 2017, the organization varied from position one to the sixth position in terms of market capitalization owing from public trading. The organization has also observed steadfast sustainable practices in its undertaking. As indicated in the topic, this paper seeks to analyse some of the sustainable practices that it has observed as based on an economic, social, and environmental standpoint.
Economic
ExxonMobil has lent on the need to enhance its industry-leading portfolio, as well as leveraging on its competitive advantages. The organization oversees this through integration of execution, scale, and technology in the heed of delivering durable value for its shareholders. As of last year, the organization expected for its capital expenditure to grow by about $4 billion during the year, to approximately $30 billion (DiChristopher, 2019). Over the course of this year, the organization sought for its expenditure to range from $33 billion to about $35 billion. The organization further sought for gas and oil exploration over a period of three years, with a sole focus on deep water offshore projects and drilling. ExxonMobil in this heed sought to grow its portfolio of developments of liquefied natural gas. The move by the organization to drill offshore was as driven by the low costs of expenditure as in the service and equipment rates.
Delegate your assignment to our experts and they will do the rest.
Borne out of the above, the organization hopes that it will foresee a growth in its profit as of last year which was anticipated to grow by about $4 billion. The organization has further projected that its annual potential from the period 2017 to 2025 will grow by about 140 per cent. The organization has also vested its efforts in investing in biofuels, a factor that will oversee gas and oil being hugely competitive in the future (ExxonMobil, 2019). This form of thinking has morphed away from what other IOC’s have done in relation to investments in renewables. The angulated calculations that ExxonMobil has done are borne out of its calculation on the foreseeable future where the world will need to make improvements relative to the reduction of emission and carbon as borne out of petrochemical and refinery plants, as well as from their operations (Krzus and Tomlinson, 2019).
Social
Community Investments
ExxonMobil has in the past, and now worked closely with the local communities. This is through its operations which have to support the needs of these communities. The organization has also collaborated with local stakeholders and governments. This is by investing in projects and programs that have sought to not only promote economic growth at the local level, but also in improving social conditions (Grantham and Vieira, 2018). The organization has also engaged in social investments such as in promotion of education economic development, health care, and in disaster relief. An example is where the education has partnered with RISE in addressing educational challenges in Angola.
Human Rights
ExxonMobil has committed to respect the rights of human beings. The organization has committed to do this acclimatized by the fact that it is fundamental to its operations. The organization has done this through training, as well as application of practices and policies that advance the same (ExxonMobil, 2018). The organization has also committed itself towards offering a positive influence to people within the communities that it operates. The organization has also promoted human rights through ensuring the security of its personnel, as well as through apt remuneration. ExxonMobil has also communicated certain expectations to its suppliers relative to human rights on a yearly basis.
Safety
One of the core values that the organization observes is safety. This is through operating in a manner that helps in protecting its customers, communities that it serves, contractors, and employees. ExxonMobil does this through safety measures which include identification of possible risks, educating contractors and employees on unsafe behaviours, and through implementation of measures that help in preventing unforeseen incidents (ExxonMobil, 2019). The organization has overseen this through process safety, personnel safety, as well as emergency preparedness. The organization has further sought to improve its safety through utilization of latest technologies in its operations.
Healthy and Engaged Workforce
ExxonMobil understands that it can best bolster productivity by keeping its employees healthy and engaged. The organization has further bolstered this through ensuring healthy and competent employees. ExxonMobil has equally done this through setting clear expectations relative to the management and identification of some of the health risks that its operations can pose (John, 2019). The organization has further overseen engagement and the health of its workplace through promotion of diversity and inclusion. This is through creation of diversity through is knowledge, culture, skills, perspectives, ideas, and thought makes (ExxonMobil, 2018). These have helped the organization to become a more resilient, innovative, and an organization that can help navigate through the ever changing and complex global energy industry.
Environmental
Developing Innovative Technology and Products
ExxonMobil has bolstered research in the heed of developing energy products and technologies that will help absolve the next generation’s needs. The organization has overseen this through carbon capture, advanced bio fuels, new processes that promote energy efficiency, as well as natural gas technologies. The organization has further collaborated with research institutions, technology and research companies, as well as national laboratories in ensuring a breakthrough in carrying out energy research (Plec and Pettenger, 2016). The organization has invested heavily this research as well as in ensuring development across its businesses. This has further foreshown the organization’s on-going commitment towards innovation and science. The organization has also partnered with other organization in the heed of developing technologies that are lower-emission on a commercial scale (Forbes, 2016). The very goal and obligation of this research is vested in protecting the environment from harmful effluents which have the impact of not only harming the general environment, but also the health of people.
Managing Risks Associated with Climate Change
The organization has equally worked up towards meeting every growing demand for energy while reducing risks associated with climate change, as well as the impacts that he same has towards the environment. ExxonMobil has further sought to reduce emissions from greenhouse gases in its operations (Lu et al., 2019). This is through its focus on reducing flaring, increasing energy efficiency, venting, as well as other emissions. The organization has done this through deploying proven technologies such as carbon storage and capture and cogeneration. The organization is also supporting and conducting research aimed at developing technologies that will help in lowering emission.
Waste Management
The organization has also recognized the public concern with reference to its priorities in eradicating unnecessary waste, ore so plastic waste. This is from the organization’s operations to minimize some of the potential impacts that this waste has on the environment, as well as with the view of increasing efficiency. The organization has equally participated in initiatives within the industry in taking up initiatives linked to the loss of pellets. This is by taking up membership with OCS, operation clean sweep, which is a program vested under the American Chemistry Council and the Plastics industry Association (ExxonMobil, 2018). The organization generally helps in execution of best practices which include working towards the attainment of zero pellet damage across the environment in its industry. The organization has also helped to reduce its customer’s plastic waste. In addition, the organization has further helped in supporting convenience, improved living standards as well as the safety of communities, and people in general. This is through reduction of spoilage, as well as ensuring food safety for its consumers.
Conclusion
ExxonMobil has generally developed sustainable practices as seen in the discussion above. This can be regarded as the factors behind the organization’s general success within its industry of operation. The organization should thereof strive in developing further practices and maintaining the current ones in the heed of overseeing further growth and development.
References
DiChristopher, T. (2019). Exxon Mobil shares slump as the oil major tells investors to brace for higher spending. CNBC . https://www.cnbc.com/2019/03/06/exxon-mobil-issues-improved-profit-and-cash-flow-outlook.html
ExxonMobil. (2018). 2018 SUSTAINABILITY REPORT HIGHLIGHTS. exxonmobil.com
ExxonMobil. (2019). Addressing the United Nations Sustainable Development Goals. https://corporate.exxonmobil.com/Community-engagement/Sustainability-Report/Addressing-the-UN-Sustainable-Development-Goals
ExxonMobil. (2019). ExxonMobil and sustainability. https://corporate.exxonmobil.com/Community-engagement/Sustainability-Report/ExxonMobil-and-sustainability
ExxonMobil. (2019). ExxonMobil updates growth plans, significant additional upside possible. https://corporate.exxonmobil.com/News/Newsroom/News-releases/2019/0306_ExxonMobil-updates-growth-plans-significant-additional-upside-possible#:~:text=Cumulative%20earnings%20potential%20from%202019,per%20barrel%20and%202017%20margins
ExxonMobil. (2019). Sustainability Report. https://corporate.exxonmobil.com/-/media/Global/Files/sustainability-report/publication/2018-Sustainability-Report.pdf
Forbes, H. (2016). ExxonMobil’s quest for the future of process automation. ARC Insights, ARC Advisory Group .
Grantham, S., & Vieira Jr, E. T. (2018). Exxonmobil's social responsibility messaging–2002–2013 CEO letters. Applied Environmental Education & Communication , 17 (3), 266-279.
John, F. (2019). Exxon and Energy Department Team Up on Biofuels, Plastics Research. https://www.scientificamerican.com/article/exxon-and-energy-department-team-up-on-biofuels-plastics-research/
Krzus, M. P., & Tomlinson, B. (2019). ExxonMobil: Constructing a Mock Long-Term Plan. Available at SSRN 3359658 .
Lu, H., Guo, L., & Zhang, Y. (2019). Oil and gas companies' low-carbon emission transition to integrated energy companies. Science of the total environment , 686 , 1202-1209.
Petroleum Economist. (2019). ExxonMobil, Shell, Neste take different paths to sustainability. https://www.petroleum-economist.com/articles/corporate/sustainability/2019/exxonmobil-shell-neste-take-different-paths-to-sustainability
Plec, E., & Pettenger, M. (2016). Greenwashing consumption: The didactic framing of ExxonMobil's energy solutions. Environmental Communication: A Journal of Nature and Culture , 6 (4), 459-476
