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ExxonMobilCharting a path to sustainability leadership

Presented to Erica NevasOctober 11, 2012

2COPYRIGHT © 2012 BRANDLOGIC, INC. AND CRD ANALYTICS. ALL RIGHTS RESERVED.

Notice

• The data contained in this document are copyrighted materials and are the property of Brandlogic, Inc. and CRD Analytics.

• These data are adapted from the 2012 Sustainability Leadership Report, which will be publicly released on October 15, 2012.

• Brandlogic is presenting this information to ExxonMobil in advance of the public release date to discuss a potential business relationship between the two parties.

• In this regard, all information contained herein and the related discussion of the report are to be treated as confidential by all recipients.

OCTOBER 11, 2012

3COPYRIGHT © 2012 BRANDLOGIC, INC. AND CRD ANALYTICS. ALL RIGHTS RESERVED. 3COPYRIGHT © 2012 BRANDLOGIC, INC. AND CRD ANALYTICS. ALL RIGHTS RESERVED. OCTOBER 11, 2012

IntroductionExxonMobil findings for 2012What ExxonMobil needs to do Next steps


About us

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• Leading provider of sustainability analytics to the NASDAQ, investment professionals and large corporations

• Provides buy-side investment research reports on companies, sectors and industries

• Works with mainstream and SRI investors to screen/create portfolios and proprietary index-based products

• The leading independent full-service branding firm, providing research, strategy, design, interactive and communications services

• 35 years in business serving primarily Fortune 500 companies

• A leader in linking sustainable business practices to corporate brand and reputation


Authors of the inaugural Sustainability Leadership Report (June 2011)

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Press coverage by:


Additional thought leadership from Brandlogic

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Upcoming articles and events:

• 2012 Sustainability Leadership Report at IABC conference in Pittsburgh (October 2012)

• Perception vs. Performance panel at Sustainable Brands conference in London (November 2012)

• Sustainability: How Stakeholder Perceptions Differ from Corporate Reality, California Management Review (November 2012)

• Three articles in The Conference Board’s Director Notes (December 2012 – April 2013)

• The Landscape of Integrated Reporting: Reflections and Next Steps, Harvard Business School (June 2010)

• Sustainability: It’s the Leadership Frontier, Leadership Excellence (January 2012)

• Keys to Sustainability Leadership: Five Best Practices, Brandlogic (June 2012)

Leadership articles:


Five keys to sustainability leadership

• Sustainability is an integral part of business strategy

– Nestle’s “shared value” concept

• Responsibility is taken for the impact of internal operations, and of associated entities such as supply chain partners

– ABB’s Supplier Code of Conduct

• GRI standards for reporting are implemented, and the issues they highlight are understood by all stakeholders

– BMW’s top ranking for seven years in the Dow Jones Sustainability Index

• Sustainability is integrated into the brand and client value propositions

– IBM and its Smarter Planet agenda

• Operational initiatives and related communications are focused on carefully selected themes tied to the core of the business

– Cisco’s focus on education, energy savings and sustainable cities

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ExxonMobil has maintained its Challenger status, meaning its reality score has outpaced its perception score

Sustainability Reality Score (SRS)

Sustainability Perception Score (SPS)

Sustainability IQ Matrix Quadrant

ExxonMobil

2012 59.4 42.05 Challenger

2011 53.4 38.13 Challenger

Change YOY 5.9 3.9

All Companies

2012 51.7 44.4

2011 42.4 47.2

Change YOY 9.3 -2.8

Sustainability IQ Matrix

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ExxonMobil’s real environmental performance increased significantly, keeping pace with the average increase in our report

Total ESG (SRS) EPI Score SPI Score GPI Score

ExxonMobil

2012 59.4 40.5 68.5 69.1

2011 53.4 27.8 63.2 69.3

Change YOY 5.9 12.7 5.3 -0.2

All Companies

2012 51.7 44.8 53.8 56.5

2011 42.4 32.7 45.5 48.9

Change YOY 9.3 12.1 8.3 7.6

Real Performance


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ExxonMobil perception scores increased in each of the E, S and G categories

All Respondents

Total ESG (SPS) Environmental Social Governance

ExxonMobil

2012 42.05 43.72 41.98 40.52

2011 38.13 37.83 37.47 39.75

Change YOY 3.92 5.89 4.51 0.77

All Companies

2012 44.45 42.30 45.29 44.92

2011 47.21 45.07 48.22 47.31

Change YOY -2.76 -2.77 -2.93 -2.39

Perceived Performance


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Investment Professionals

2012 41.93 41.32 43.40 39.62

2011 33.83 28.80 33.47 39.60

Change YOY 8.1 12.52 9.93 0.02

Purchasing Professionals

2012 48.00 50.18 48.19 45.44

2011 46.92 48.87 46.29 46.23

Change YOY 1.08 1.31 1.9 -0.79

Graduating Students

2012 36.68 39.84 35.05 36.77

2011 33.81 35.52 32.87 33.97

Change YOY 2.87 4.32 2.18 2.8

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ExxonMobil’s perception scores among investment professionals increased on E, S and G categories

Perceived Performance (continued)



Developed Countries

2012 35.07 35.76 34.63 35.25

2011 30.96 30.46 29.48 34.40

Change YOY 4.11 5.3 5.15 0.85

Newly Developed Countries

2012 57.30 61.11 58.02 52.04

2011 53.17 53.27 54.23 50.96

Change YOY 4.13 7.84 3.79 1.08

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ExxonMobil’s perceived performance scores in India and China are generally greater than its scores in the developed world

Perceived Performance (continued)





What does this mean for ExxonMobil?

• From 2011 to 2012, ExxonMobil’s real ESG scores increased, but not as much as the average increase for the 100 companies analyzed

• ExxonMobil’s SPS score increased, bucking the average of the 100 companies

– Investor perceptions of ExxonMobil’s environmental performance have improved significantly

– Perceptions in India and China remain significantly higher than those in the developed world

• ExxonMobil needs to redouble its efforts on both the reality and perception sides if it wants to chart a path to sustainability leadership

– Our proprietary Sustainability Leadership Framework, the only one of its kind, can help you in this regard

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Our proposed first step: developing the report card

• We recommend developing a customized audit and research program:

– Organize a task force including sustainability, brand and communications functions

– Gather and audit examples of existing messaging/communications

– Collect similar data from ExxonMobil’s competitors

– Identify key stakeholder audiences for external research

– Using our Sustainability IQ Matrix methodology, conduct global stakeholder research to gain a deeper understanding of your specific audiences

– Report findings and determine steps to remedy/improve performance

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17COPYRIGHT © 2012 BRANDLOGIC, INC. AND CRD ANALYTICS. ALL RIGHTS RESERVED. 17COPYRIGHT © 2012 BRANDLOGIC, INC. AND CRD ANALYTICS. ALL RIGHTS RESERVED.

Contact details

Denis RineySenior PartnerBrandlogic Corporation15 River Road, Suite 310Wilton, CT 06897

203 834 0087 [email protected]

OCTOBER 11, 2012