Assessment methodology and results

For many years, ExxonMobil has worked to align the advocacy positions of trade associations with the company’s climate lobbying principles.

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is no longer a constructive participant in the development and advancement of effective climate policy, we have withdrawn our membership.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 and, in addition to a variety of other policy considerations including and beyond climate, IPAA this year.

In the preparation of this report, ExxonMobil has:

• Undertaken a global review of trade association memberships.
• Identified those organizations that are active and influential in the discussions 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 society’s goal of 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.

We recognize that there are many different potential pathways that society could take to achieve its ambitions to reach net zero. No single transition pathway, its success, or rate and pace, can be reasonably predicted, given the wide range of uncertainties. Key unknowns include yet-to-be-developed government policies, market conditions, and advances in technology that may influence the cost, pace, and potential availability of certain pathways.

In evaluating alignment, we look at how efforts can enable emission reductions that contribute to the overall ambition, not how they promote a single transition scenario or pathway.

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% 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 56 organizations that are active and potentially influential in the discussion and development of climate policy in 2022.

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

Summary of assessment findings

Of the 56 organizations assessed, we found 52 aligned with supporting policies that will help society achieve its ambition for a net-zero future; three organizations are partially aligned; and we have withdrawn our membership from one organization. The table below provides a summary of the assessment results:

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.

Summary of Assessment

LMOGA supports the regulation of methane emissions, advancement of carbon capture, utilization and storage (CCUS) technology, and other energy transition policies. Additionally, 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.

However, LMOGA stops short of supporting the goals of the Paris Agreement advancing its own 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.  

ExxonMobil will continue to work with LMOGA in 2023 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.

Summary of Assessment

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 net-zero future.

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.

Summary of Assessment

ExxonMobil representatives worked with AFPM in 2022 to strengthen its support for society’s ambition to achieve a net-zero future and to advocate in support of policies to reduce greenhouse gas emissions.

Most notably, for the first time publicly, the organization articulated its support for the aspirations of the Paris Agreement, a position AFPM has now made express on its website alongside its climate principles.

AFPM also undertook considerable positive efforts, both through membership deliberations and external participation in policy conversations, intended to advance comprehensive federal transportation policy, including a federal fuel carbon reduction standard and complementary well-to-wheel vehicle standard. 

Moreover, AFPM engaged last year in express public advocacy, including filing regulatory comments, endorsing federal legislation, and articulating support in its sustainability report for lower-carbon technologies such as CCS and hydrogen that will play an important role in decarbonizing the transportation, refining, and petrochemical sectors.

These developments mark substantial progress in 2022, underpinning our decision to revise our 2021 assessment of AFPM as “misaligned.”

In 2023, we will work with AFPM to progress more comprehensive and solutions-oriented approaches to climate policy, including the development of a more robust climate policy framework; express, public recognition for the risks of climate change; and public advocacy in support of an economy-wide price on carbon.

We continue to value AFPM’s credible and authoritative voice in the ongoing development of policies important to the refining and petrochemical sectors and note particularly, its constructive engagement in 2022 in support of advanced recycling policies.

Independent Petroleum Association of America (IPAA)

Membership of relevant board/executive committees: None.

Summary of Assessment

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 is committed to continuously improving the industry’s environmental performance.

However, IPAA does not have any climate-related policy principles, nor has it supported emission-reduction policies. It has also advocated against strong methane regulations.

Based on an assessment of a variety of policy positions and areas of work including and beyond climate, ExxonMobil withdrew its membership in IPAA in 2022.