2005 Corporate Citizenship Report

About this report ExxonMobils 2005 Corporate Citizenship Report is produced in accordance with the International Petroleum Industry Environmental Conservation Association (IPIECA) and the American Petroleum Institute (API) Oil and Gas Industry Guidance on Sustainability Reporting.

These guidelines are designed to help energy companies and industry associations enhance busi-ness performance and improve the overall quality of their citizenship communications. The majority of the guidelines key indicators for environment, health and safety, social, and economic responsibil-ity are consistent with indicators used in the Global Reporting Initiative (GRI). For comparability purpos-es, we have provided a mapping of this in our index on page 68.

In creating this report, we listened to comments from readers, conducted interviews with key audience groups, and gathered insights from employees around the world. We also considered a detailed review of our 2004 Corporate Citizenship Report provided by Business for Social Responsibility (BSR), a membership-based advisory organization on cor-porate social responsibility of which we are a mem-ber. BSRs review of the 2004 Corporate Citizenship Report focused on relevance and materiality; bal-ance, accuracy and clarity; metric indicators; links to business strategy; and, external engagement.

In response to this feedback, we have added several new items, including a mapping of our methods of engagement and a data performance table.

This report covers 2005 data and activities, and dis-cusses our performance on a range of issues relating to the businesses we own or operate. All nancial in-formation presented here is reported in U.S. dollars.

On the Cover. In Indonesias Aceh Province, which is still recovering from the impact of the 2004 tsunami, ExxonMobil Oil Indonesia Inc. has been actively engaging with local communities for three decades. Our work with the North Aceh Womens Council for Family Welfare is developing a sustainable model of preschool education for children.

LRQA attestation summary statementLloyds Register Quality Assurance believes the ExxonMobil reporting system is effective in deliv-ering safety, health, and environmental indicators, which are useful for assessing corporate perfor-mance and for reporting information consistent with the IPIECA/API Guidelines. For the full attes-tation statement, see the inside back cover.

Citizenship overview 1Energy and progress 1Letter from the CEO 2Corporate prole 4Year in review 6Citizenship perspective 8Energy outlook 10Economic responsibility 12 Management systems 12Corporate governance 12Board of Directors 13Shareholders 14Transparency 15Customers 16Capital management 16Suppliers and contractors 17Integrity in our operations 18Environmental performance 20Environmental Business Planning (EBP) 20Climate science 22Greenhouse gas (GHG) emissions 24GHG emissions reporting 24Energy efciency 24Flare reduction 26Low-emissions natural gas 27Research for the longer term 28Air emissions 29Freshwater use 30Spills 31Emergency response preparedness 32Environmental expenditures 33Wastes and residual materials 33Biodiversity 34Case studies 36Workplace performance 44Health and safety management 44Workforce participation 45Security 47Workforce health 47Product stewardship 49Employment policies and practices 50Global workforce 51Investing in diversity 53Prohibiting bribery and corruption 54Community & social performance 56Strategic community investment 56Project assessment and consultation 58Respecting property rights 59Indigenous communities 59Capacity building 61Human rights 62Political involvement and contributions 63Social investment and initiatives 64Worldwide community contributions 67Employee volunteerism 67Index 68

Table of contents

1Citizenship overview

Energy and progress

Detail performanceCommunicate our performance on select economic, environmental, health and safety, and social indicators.

Goals of the report

Encourage engagementEngage with and respond to a variety of parties on issues of mutual concern and interest.

Share resultsShare industry-leading achievements in safety performance, energy efciency and emissions reduction efforts, human rights policy implementa-tion, community engage-ment, and other areas of activity.

Track and identify improvementProvide performance results and information to identify areas for continued improvement.

Humankind faces an enormous challenge: meeting the worlds growing

demand for energy, driven mainly by the desire for higher living standards, while

managing the environmental effects of this increase in energy consumption.

At ExxonMobil, we work to balance these different needs. Its why we have

invested more than $74 billion in the past five years to expand energy supplies.

Its why we have promoted energy efficiency in our industry. Its why we have

developed leading-edge technology partnerships. Its why we continue to invest

so much in research both into existing energy technologies for the short term

and into new technologies for the decades ahead. And its why we initiated the

largest privately funded low-greenhouse-gas-energy research effort in history.

By balancing all of these different energy demands, we will be able to address

one of the greatest challenges of our age.

2Today, as more people around the world aspire to higher living standards and greater economic opportunities, they require more energy. To meet this growth in energy demand, especially in developing countries, we must continue to develop and deliver new energy supplies. Doing this well represents the greatest contribution that ExxonMobil can make to society.

This challenge became more acute last year as higher oil prices, natural disasters, and geopolitical issues caused governments, consumers, investors, and the public greater concern about the supply and cost of energy, as well as the effect of its use on

the environment. We believe that industry can and should play an active and constructive role in the ongoing dialogue about our energy future.

Through ExxonMobils continued leadership position in the global energy industry, we are condent we can help meet the worlds growing need for energy. Our processes for nding, evaluating, and executing investment projects have produced excellent results for our customers and our shareholders for more than 120 years. Our business decisions are based on proven science and careful analysis of costs and benets using an investment discipline aimed at achieving reliable and consistent results.

Our business decisions also reect our commitment to corporate citizenship. We rmly believe that the way we achieve results is as important as the results themselves. To that end, we will continue to apply our expertise and resources to the daily challenge of providing energy to the world in an economically, environmentally, and socially responsible manner.

The global energy industry is enormous, and projects increasingly require huge investments, advanced technology, and long-term planning. To maintain our leadership position in this changing competitive environment, we manage our invest-ments and operations with consistency, integrity, discipline, reliability, and ingenuity. We take the same approach to meeting our commitment to corporate citizenship.

Citizenship overview

Letter from the CEO

Continue industry-leading investments in nding, developing, and delivering the energy the world needs while securing value for our shareholders over the long term.

Key priority areas for 2006

Maintain leadership in health and safety performance and continue pursuing our goal of zero injuries and illnesses.

Further improve environmental performance through increased energy efciency efforts, which reduce air emissions including greenhouse gases; enhanced land and water management; and, research into advanced technology and fuels.

Recruit and train top talent in the communities in which we operate worldwide.

ExxonMobils greatest challenge lies in helping to responsibly meet the worlds rising energy demand.

Continue to address concerns and identify opportunities for creating mutual benet for society and the long-term health of the company.

3This approach to citizenship is embedded in our management systems, beginning with our Standards of Business Conduct. These Standardsrequired to be understood and applied by all employeeshave provided a framework for ethical policies and prac-tices for more than 30 years. It is supported by disci-plined management systems, such as our Operations Integrity Management System, which provides the fundamental framework we use to incorporate safety, security, health, environmental, and social commit-ments into our business planning and management.

This systematic approach has enabled us to continue providing essential energy to meet growing demand while conducting our operations safely and reliably, improving energy efciency and environmental performance, advancing cleaner technologies, and encouraging economic growth and social progress in the communities in which we operate.

We are committed to build on this record of accomplishment in 2006. Our key priorities for the year include:

Continuing to make substantial, disciplined invest-ments in nding, developing, and delivering the energy the world needs while securing value for our shareholders over the long term;

Maintaining our industry-leading position in health and safety performance;

Further improving our environmental performance through increased energy efciency, reduced air emissions including greenhouse gases, enhanced land and water management, and research into advanced technology and fuels;

Recruiting and training top talent in the communi-ties in which we operate worldwide;

Continuing to engage with others outside the company to address concerns and identify opportu-nities for creating mutual benet to society and the long-term health of the company;

Further strengthening our efforts to share best practices and improve community relationships around the world; and,

Helping our host communities to grow and prosper through better access to education and health care opportunities.

This report illustrates our commitment to citizenship through the ways we translate our values into action. We are proud of our achievements to date, and we look forward to even greater achievements in the future.

Rex W. TillersonChairman and CEO

Further strengthen our efforts to share best practices in social initiatives and improve community relationships around the world.

Help our host communities grow and prosper through better access to education and health care opportunities.

4Citizenship overview

Corporate prole

A global energy leader

ExxonMobil is the worlds largest publicly traded international oil and gas com-

pany. An industry leader in almost every aspect of the energy and petrochemical

business, we operate facilities or market products in nearly 200 countries and

territories around the world and explore for oil and natural gas on six continents.

ExxonMobil is involved in the explo-ration and production of crude oil and natural gas; manufacture of petroleum products; and transporta-tion and sale of crude oil, natural gas, and petroleum products. ExxonMobil is a major manufacturer and marketer of basic and specialty petrochemicals and also has interests in electric power generation facilities. In addition, we conduct extensive research programs in support of these businesses.

Upstream. ExxonMobils asset base is highly prot-able and geographically diverse. The company has interests in exploration and production acreage in 36 countries, and production in 26 countries located in Africa, Asia Pacic, the Middle East, Europe, North and South America, and the Russia/Caspian region. ExxonMobil sells natural gas in 25 countries and across ve continents. Total oil and gas production was 4.1 million oil-equivalent barrels per day in 2005.

Downstream. ExxonMobil has interests in 45 reneries located in 25 countries and more than 35,000 retail outlets in nearly 100 countries. The company markets fuels and lubricants in more than 150 countries. In 2005, renery throughput was 5.7 million barrels per day, and petroleum product sales were 8.3 million barrels per day. Worldwide, we market products under the Exxon, Mobil, and Esso brands.

Chemical. ExxonMobil is one of the leading manufacturers of petrochemicals with operations in 50 wholly owned and joint-venture facilities around the world. The company is one of the largest pro-ducers of olens. This basic petrochemical building block is a raw material for products used in a variety of consumer applications including packaging, automobile parts, and household goods. We are also the largest producer of polyolens, which include polyethylene, the largest-volume plastic; and polypropylene, one of the fastest-growing polymers. More than 90 percent of our chemical capacity is employed in businesses where we rank rst or second in market share by worldwide volume.

Technology. ExxonMobil maintains one of the industrys largest research and development efforts with more than $700 million spent in 2005 and $3.2 billion since 2001. We emphasize proprietary solutions that solve critical business challenges and pursue research into proprietary breakthrough technologies that will not only enhance existing businesses, but also provide step changes in ExxonMobils competitive position.

ExxonMobil is a publicly traded company. The New York Stock Exchange (NYSE) is the principal exchange on which Exxon Mobil Corporation common stock (symbol XOM) is traded. More information on our structure and operations can be found on our Web site at exxonmobil.com.

Worldwide, ExxonMobil markets fuels and lubricants under three brands

The Exxon emblem is the primary trademark used to brand Exxon products and services in the United States.

The Esso oval is the primary trademark used to brand Esso products and services outside the United States.

The Mobil trademark is the primary trademark used to brand Mobil products and services worldwide.

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Alberta, CanadaFiled regulatory application for the phased develop-ment of the Kearl tar-sands mining project.

1

Baton Rouge, U.S.Announced expansion of the worlds largest isopropyl alcohol plant.

2

LibyaSuccessful bidder for Contract Area 44, a large, high-risk, high-potential block in a new exploration area offshore.

9

Nigeria/SaoTome and Principe Acquired interest in Block 1 of the Joint Development Zone.

10

AngolaThe deepwater Kizomba B project started up and set an industry record for the fastest development time for a project of its size and complexity.

11

AzerbaijanThe Azeri-Chirag-Gunashli Phase 1 project began production from the Central Azeri field.

13

ChinaProject development activities continued on the Fujian integrated refining, petrochemical, and fuels marketing joint venture.

14

QatarRasGas LNG Train 4 and the Al Khaleej Gas Phase 1 projects were completed on schedule and started production.

12

Gulf Coast, U.S.Obtained permits for the Golden Pass and Vista del Sol LNG receiving terminals.

3

Milford Haven, Wales Construction under way on an LNG receiving terminal.

8 RussiaThe Sakhalin-1 (Chayvo) Phase 1 project began production using world-class extended-reach drilling technology.

15

U.K. North SeaAwarded 20 contiguous blocks for exploration covering 1.2 million acres, the single largest award in the U.K. North Sea licensing history.

7

BrazilAcquired 3D seismic datain a 340,000-acre offshore exploration block.

6

SingaporeAnnounced study for a second world-scale steam cracker and associated derivative units.

16

AustraliaSigned framework agreement in the Greater Gorgon area, and design continues on a project that is planned to include two 5-million-ton-per-year LNG trains.

17

Piceance Basin, U.S. Initiated a project using multi-zone stimulation technology, beginning to bring the significant 35 trillion cubic feet (gross) of Piceance Basin gas potential to the U.S. market.

5

Beaumont, U.S.Two new cogeneration trains started up, each with 160 megawatts of capacity. Cogeneration reduces greenhouse gas emissions.

4

2005 operational highlights

5

6AchievementsSafety and health In 2005, ExxonMobil maintained its industry-leading performance in workforce lost-time incident rate. (Page 44)

Spills In 2005, ExxonMobil recorded the fewest spills in its history. (Page 31)

Human rights and security ExxonMobil implemented its Framework on Human Rights and Security in seven targeted countries, providing corporate principles and expectations for managing security relationships with host gov-ernments and private security providers. (Page 62)

Greenhouse gas (GHG) management The company implemented business processes to ensure compliance with emerging greenhouse gas (GHG) regulations in Europe. Globally, we continued efforts to reduce emissions through investment in cogeneration, aring reduction, and energy efciency projects. (Page 24)

Investments In 2005, ExxonMobil achieved record earnings while delivering record distributions to shareholders, making record capital investments, and investing over $700 million in research and development. (Page 14)

Transparency In 2005, ExxonMobil entered into a Memorandum of Understanding with the government of Kazakhstan for the implementation of the Extractive Industries Transparency Initiative. (Page 15)

Citizenship overview

Year in review

Educating Women and Girls Initiative In 2005, the company launched the Educating Women and Girls Initiative in eight countries. The initiative is designed to help reduce a major barrier to economic growth by providing women in devel-oping countries greater access to education and training. (Page 66)

Workplace flexibility and diversity The Workplace Flexibility Program was updated in 2005 to enhance employees ability to achieve an effective work-life balance. In addition, the Working Globally program was implemented to help bridge cultural gaps in our global work teams. (Page 53)

ChallengesFatalities and injuriesTragically, we had three employee and ve contractor fatalities in 2005. Consistent with our vision of Nobody Gets Hurt, we are working to learn from these inci-dents and prevent them in the future. (Page 44)

Maintaining momentum in energy efficiencyWe face a challenge in continuing our pace of signicant energy efciency improvements year after year. Adding cogeneration capacity and identifying energy efciency improvements through our Global Energy Management System are ways we work to continue the pace of improvements. (Page 24)

Skills developmentOur company faces the challenge of increased global competition for highly-skilled scientists and engi-neers. We continue to invest in initiatives to increase the number of students pursuing degrees in these areas, with a special focus on minorities and women. (Page 52)

Highlights

Engaging in global transparency initiatives Page 15

Working to reduce our worldwide GHG emissions Page 24

Restoring operations after Hurricanes Katrina and Rita Page 40

Launching the Educating Women and Girls Initiative Page 66

Achieving industry-leading safety and health Page 44

7Performance data

1 See Frequently Used Terms posted on the Investor Information section of our Web site, exxonmobil.com/fut 2 Income, excise, and other taxes 3 Global Energy Management System (GEMS)

2002 2003 2004 2005

Financial and operating

Net income (billions of dollars) 11.5 21.5 25.3 36.1

Sales and other operating revenue (billions of dollars) 201 237 291 359

Capital and exploration expenditures1 (billions of dollars) 14 16 15 18

Total assets at year end (billions of dollars) 153 174 195 208

Total long-term debt at year end (billions of dollars) 7 5 5 6

Return on average capital employed1 (percent) 13.5 20.9 23.8 31.3

Oil-equivalent production (millions of oil-equivalent barrels daily) 4.2 4.2 4.2 4.1

Renery throughput (millions of barrels daily) 5.4 5.5 5.7 5.7

Petroleum product sales (millions of barrels daily) 7.8 8.0 8.2 8.3

Natural gas production available for sale (billions of cubic feet daily) 10.5 10.1 9.9 9.3

Chemical prime product sales (millions of metric tons) 26.6 26.6 27.8 26.8

Taxes to governments2 (billions of dollars) 64 75 87 99

Distribution to shareholders1 (billions of dollars) 10 12 15 23

Benets to employees (billions of dollars)

wages, salaries, pensions and other benets 9 11 11 12

Spending with suppliers (billions of dollars) 114 128 162 211

Safety

Fatalities employees 3 4 0 3

Fatalities contractors 7 19 6 5

Lost-time incident rate employees (per 200,000 work hours) .083 .070 .043 .063

Lost-time incident rate contractors (per 200,000 work hours) .088 .082 .062 .054

Lost-time incident rate workforce (per 200,000 work hours) .086 .076 .053 .059

Recordable incident rate employees (per 200,000 work hours) .54 .41 .39 .37

Recordable incident rate contractors (per 200,000 work hours) .58 .56 .42 .45

Environment

Number of hydrocarbon spills > 1 barrel, marine vessels (operated & leased) 1 1 1 0

Number of hydrocarbon spills > 1 barrel, all other 567 465 474 370

Hydrocarbons spilled, thousand barrels 37.4 22.3 59.9 12.2

Controlled hydrocarbon discharges to water, metric tons 2350 2345 2175 2005

Volatile organic compounds emitted, thousand metric tons 347 386 395 363

Volatile organic compounds emitted, metric tons per 100 metric tons of throughput

Upstream .060 .078 .086 .084

Rening .031 .030 .023 .018

Chemical .065 .060 .059 .049

Greenhouse gas emissions (direct equity CO2-equivalent), million metric tons 133.5 136.8 138.5 138

Greenhouse gas emissions, (direct equity CO2-equivalent, excluding cogeneration),

metric tons per 100 metric tons throughput

Upstream 20.5 22.7 21.5 21.2

Downstream 18.6 18.2 18.3 17.3

Chemical 43.2 41.6 45.8 44.3

Hydrocarbon aring (production & rening), million standard cubic feet per day 461 612 746 819

Energy intensity, normalized versus GEMS3 base year (2000) rening 98.7 97.4 94.7 93.2

Energy intensity, normalized versus GEMS3 base year (2001) chemical steam cracking 100 98 93 92.7

Cogeneration capacity, megawatts 2900 2900 3300 3700

Environmental expenditures (millions of dollars) 2343 2803 2854 3330

Employees

Number of regular employees (thousands) 92 88 86 84

Percent of workforce non-U.S. 62 61 62 63

Percent new professional hires non-U.S. 60 64 78 73

Social

Community investment (millions of dollars) 92 103 106 133

U.S. 71 73 70 81

Rest of world 27 30 36 52

Corporate political contributions (millions of dollars) .5 .3 .3 .3

Opinion leaderidentification

Biannual roundtables:North America,

Europe, Asia, Africa

Follow-up

Corporateresponsibility issues:

Social, environmental, governance

Methodology:Open dialogue with

senior management underChatham House rule

8

Citizenship overview

Citizenship perspective

Integrating trends and objectives

Citizenship at ExxonMobil means meeting the worlds growing demand for energy

in an economically, environmentally, and socially responsible manner. We identify

our most important citizenship issues through the integration of our business

standards and objectives with external needs and trends. Through this lens, we

assess our citizenship performance and opportunities for continuous improvement.

Every day, ExxonMobil serves the energy needs of millions of people around the world.

Our long-term business success is tied to meet-ing growing energy demands in an economically, environmentally, and socially responsible manner. Consistent with our belief that the way results are achieved is as important as the results themselves, our corporate-wide management systems are designed to ensure that citizenship is integrated into our business practices.

While our management systems govern our approach to corporate citizenship, we identify our most important citizenship issues in the con- text of our business standards and objectives, discussions with experts outside our company, and evaluation of emerging external trends.

EngagementMany people and organizations have an impact on our business, just as we impact many individuals and communities. We believe constructive engagement with customers, partners, shareholders, governments, nongovernmental organizations (NGOs), and oth-ers is essential to helping identify and manage key issues. By listening to interested parties and sharing our views, we seek to improve our decision-making processes, anticipate and respond to changing expectations, and maintain a balanced perspective on the issues affecting our business and society.

Interaction with a variety of interested parties takes many forms. These include shareholder meet-ings, community meetings, print publications, Web content, and partnerships with NGOs. In addition to day-to-day interaction with many parties, we also hold ongoing, periodic dialogues on corporate-wide issues with opinion leaders and NGOs in North America, Europe, Africa, and the Asia Pacic region. This process, illustrated in the above schematic, provides an opportunity to discuss a variety of topics, including governance, the environment, energy, and social issues.

Elements of citizenship success:Consistent business success

Ethical conduct

Fiscal responsibility

Health and safety of our workforce and operations

Improving our environmental performance

Cultivating talent and diversity

Listening and responding to concerns

Helping improve the quality of life in communities in which we operate

Opinion leader dialogue process

Communication and engagement

Customer feedbackprograms

Customer service organizations

Consumer care programs

Internet communications

Customer surveys

Customer seminars and symposia events

Monthly e-publications to select U.S. distributors and customers

Interactive conference calls

exxonmobil.com

Employee forums

Labor managementcommittees

Confidential hotline

Employee diversitynetwork groups

Diversity managementcouncils

Union representation

Joint industry councils

Joint health and safetycommittees

Employee human resources intranet sites

Corporate CitizenshipReport

Local publications, e-mail

Corporate intranet site

Supplier diversity program

Provide financial sponsorships to minority and women councils

Participate in minority and women outreach at trade shows in key areas

Award scholarships for minority- and women-owned businesses

Mentor suppliers in negotiation and business plan development

exxonmobil.com

Meetings with analystsand major shareholders

Shareholder dialogues

Quarterly earningscommunications

Proxy statement

Securities and ExchangeCommission filings

Shareholder magazines

Annual Report

Annual shareholdersmeeting

Financial andOperating Review

Annual analyst meeting

Tomorrows Energy report on future energy trends

Corporate CitizenshipReport

exxonmobil.com

6.1 billionShares

2.5 millionIndividual shareholders

2000Institutional shareholders

175,000Total suppliers

2500U.S.-based minority- and women-owned suppliers

$211 billionTotal annual purchases

84,000Global workforce(approximately)

10 millionDrivers fueled per day

at retail chains

1 millionIndustrial and

wholesale customers

35,000Retail outlets in

nearly 100 countries

200Countries and territories

45Refineries

(ownership interest)

50Chemical plants

Government & communities Customers EmployeesSuppliersShareholders

Community consultationand feedback mechanisms

Interaction withgovernments

Opinion leader dialogues(with NGOs and other organizations) on specific issues

Social and EnvironmentalImpact Assessments

Partnerships in local associations

Local publications,Web sites

Speakers forums atuniversities, communityand business organizationsworldwide

E-mail addresscitizenship@exxonmobil.com

Corporate CitizenshipReport

exxonmobil.com

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200

300

(Millions of barrels per day oil-equivalent)% = Average growth/year 2000-2030

Oil Gas Coal Other

203020051980

1.6%

1.8%

1.8%

1.4%

2030200519800

20

40

60

203020051980

OECD Non-OECD

(Millions of barrels per day)Transportation Other uses

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Citizenship overview

Energy outlook

Each year, ExxonMobil prepares a detailed global energy outlook, now extending to the year 2030, available at exxonmobil.com/energyoutlook. While we consider past experience, we also evaluate new technologies and trends, as well as insights from a wide variety of experts such as the International Energy Agency, the U.S. Department of Energy, and the European Commission. The result is an under-standing of the fundamentals that underpin the worlds growing energy needs.

Developing nations, growing needs. Like others, our outlook recognizes that energy is vital to eco-nomic progress. Billions of people in developing nations seek to improve their standard of living. In these areas, energy needs today are as fundamental as they are great close to 1.6 billion people lack access to electricity, and more than 2 billion still use traditional fuels such as wood and dung for heating and cooking.

Over the next 25 years, the global population will increase by 25 percent to a total of 8 billion with nearly 95 percent of this growth in developing coun-tries. At the same time, the global economy is likely to double in size, led by rapidly expanding economies such as China, India, Indonesia, and Malaysia.

Energy demand increases significantly. In concert with this economic growth and expanding popula-tion, we expect worldwide energy demand to rise by nearly 50 percent by 2030. About 80 percent of the increase in energy demand will occur in developing countries. Perhaps most signicant, we anticipate that by 2030, the developing nations in Asia alone will account for roughly one-third of global energy

demand, equivalent to North America and Europe combined. This energy is essential, not only to na-tions striving for economic progress in the global economy, but also to improved health, education, and work opportunities for billions of individuals around the world. With this progress, we also expect environmental conditions will continue to benet from broader use of modern, efcient, and cleaner energy technologies.

Energy efficiency is important. As demand rises, energy efciency will become increasingly important, with the pace of efciency improvements and inno-vations likely to accelerate. We expect strong annual gains in efciency through increased investment and innovation. While the biggest opportunities for im-provement lie with developing countries, developed nations will also accelerate the rate of improvement primarily through advances in personal transporta-tion and power generation, driven by new technolo-gies, as well as gains in the residential, commercial, and industrial sectors.

Fossil fuels predominate. Over time, an increasingly diverse range of energy sources and technologies will be needed. But at least through 2030, fossil fuels will continue to satisfy the vast majority of global demand. These are the only fuels with the scale and exibility to meet the bulk of the worlds vast energy needs over this period.

Growth in oil demand will be driven by increasing transportation needs, especially in developing coun-tries. However, signicant improvements in vehicle fuel economy will dampen demand growth as ad-vanced automotive fuel and engine systems deliver substantial efciency and emissions gains.

Addressing energy trends

ExxonMobil is working to develop and provide stable, reliable, and affordable energy supplies. Technology advances remain critical in this effort, and represent an area where ExxonMobil has long been the industry leader with a history of invention. In 2005, we invested more than $700 million in research and development, balanced between technology extensions, which can be rapidly deployed, and break-through research in areas that can help bring success in meeting the worlds long-term energy challenges.

Growing global energy demand Oil growth led by Non-OECD1 transport demand

Asia Pacific

+0.9%

1723

44

113

Asia Pacific

+3.2%11

19

Africa

+2.0%

Europe

+0.8%

3747

918

Latin America

+2.2%

1119

Middle East

+1.9%

North America

+0.6%

5768

Russia/Caspian

+1.3%

1827

205

334

World totals

1.6%per year

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Natural gas will continue to grow in importance, reecting its environmental benets and efciency in electricity generation. Resources to meet grow-ing demand are adequate and diverse; technology advances will help enable strong growth of liqueed natural gas (LNG) supplies for major markets.

Coal use will also increase, most notably in countries with large, indigenous resources, particularly in Asia.

The use of wind, solar power, and biofuels will con-tinue to grow rapidly. We expect that together they will supply about 2 percent of total world energy demand by 2030.

Growing demand and the expected energy mix to supply that demand will result in increased carbon dioxide (CO2) emissions. We expect annual growth in CO2 emissions from 2000 to 2030 to average 0.5

percent in the developed countries compared to 2.7 percent in developing countries, which will account for 85 percent of the total global increase.

Technology plays a key role. While global re-sources are sufcient to meet demand, access and timely investments to develop new supplies remain critical. In addition, technology will play a vital role in meeting the energy challenges ahead. ExxonMobil is continuing to develop and utilize advanced tech-nologies to ensure adequate supplies. Examples include sophisticated reservoir imaging, enabled by increased computing power, which allows the identi-cation of previously unknown oil and gas deposits. In addition, deepwater exploration technology and extended-reach drilling allow the industry to pin-point and access previously inaccessible resources.

Energy demand by region: 2000&2030 Non-OECD1 OECD

(Millions of oil-equivalent barrels per day)% = Average annual growth rate

1For the purpose of this report, the phrases developing countries and Non-OECD countries are interchangeable. OECD countries refer to member states of the Organization for Economic Cooperation and Development.

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Economic responsibilitySection one

Deliver returnsExxonMobil pursues a highly disciplined investment approach to identify and select the most attractive investment opportunities in all phases of the eco-nomic cycle. This approach has delivered pacesetting prots in 2005 and a return on capital employed that exceeded 31 percent.

Contribute to economic progressIn 2005, we made payments of $363 billion to employees, suppliers, and governments.

Manage good governanceIn 2005, ExxonMobil scored consistently high marks in ratings on governance issues among corporations in general and within the oil and gas industry in particular.

Focus areas

Support transparencyExxonMobil has been constructively involved in a number of important transparency initiatives.

In 2005, we continued our long tradition of contributing to economic progress and development through payments and expenses of $363 billion:

Operations generated $99 billion in taxes to local, state, and national governments;

$211 billion in payments to suppliers;

$12 billion in wages and benets to employees;

$18 billion in capital and exploration expenditures; and,

$23 billion in dividends and share purchases to reduce shares outstanding.

Management systems ExxonMobils straightforward business model, high standards of integrity and legal compliance, governance practices, and management control systems are key to achieving long-term sustain- able performance.

Our Standards of Business Conduct form the frame-work by which we operate in nearly 200 countries and territories around the globe, providing each of our employees with principles for managing day-to-day compliance with the Corporations Standards. The Standards include guiding principles, 16 foun-dation policies, and procedures and open-door communication expectations. ExxonMobil employ-ees must review the policies annually and apply them to all aspects of their work. In addition, each non-employee director must certify annually his or

her compliance with the duties and obligations applicable under the Standards, as well as the Corporations Corporate Governance Guidelines and New York Stock Exchange listing standards.

Sound nancial controls are fundamental to our operating model, and we use a rigorous, systematic approach to apply those controls. Our System of Management Control Basic Standards denes the basic principles, concepts, and standards that drive our business controls across worldwide operations. We assess nancial control risks, establish proce-dures for mitigating concerns, monitor conformance with standards, and report results to management using our Controls Integrity Management System.

Corporate governanceCorporate governance is a core strength of ExxonMobil, a fact validated by governance ratings in the past year. Institutional Shareholder Services rated the company above 96 percent of other companies in the oil and gas industry on corporate governance issues, and above 73 percent of the S&P 500. GovernanceMetrics International gave ExxonMobil a rating of nine (out of a possible 10) on corporate governance indicators for 2005.

Policies and practices. A number of clearly articulated policies and practices reect the companys long-standing commitment to high ethical standards:

10 of the Corporations 12 directors are independent;

96%Rated above

of other oil and gas companies on

corporate governance

Institutional Shareholder Services rated ExxonMobil above 96 percent of other companies in the oil and gas industry on corporate governance.

13

Board of Directors

Michael J. BoskinT.M. Friedman Professor of Economics and Senior Fellow, Hoover Institution, Stanford University

William W. GeorgeProfessor of Management Practice, Harvard Business School; Former Chairman of the Board and Chief Executive Ofcer, Medtronic, Inc. (a medical technology company)

James R. HoughtonChairman of the Board and Chief Executive Ofcer, Corning Incorporated (communications, advanced materials, and display products)

William R. HowellChairman Emeritus, J.C. Penney Company, Inc. (department store and catalog chain)

Reatha Clark KingFormer Chairman of the Board of Trustees, General Mills Foundation, the philanthropic foundation of General Mills, Inc. (manufacturer and marketer of consumer food products)

Philip E. LippincottRetired Chairman and Chief Executive Ofcer, Scott Paper Company (sanitary paper, printing and publishing papers, and forestry operations); Retired Chairman of the Board, Campbell Soup Company (manufacturer and marketer of branded convenience food products)

Henry A. McKinnell, Jr.Chairman of the Board and Chief Executive Ofcer, Pzer Inc (pharmaceuticals)

Marilyn Carlson NelsonChairman and Chief Executive Ofcer, Carlson Companies, Inc. (travel, hotel, restaurant, cruise, and marketing services)

Samuel J. PalmisanoChairman of the Board, President, and Chief Executive Ofcer, International Business Machines Corporation (computer hardware, software, business consulting, and information technology services)

Walter V. ShipleyRetired Chairman of the Board, The Chase Manhattan Corporation and The Chase Manhattan Bank (banking and nance)

J. Stephen SimonSenior Vice President

Rex W. Tillerson Chairman and Chief Executive Ofcer

Standing committees of the Board

Audit CommitteeJ.R. Houghton (chair)W.R. Howell R.C. KingP.E. LippincottH.A. McKinnell, Jr.

Board Advisory Committee on ContributionsM.C. Nelson (chair)W.W. George W.R. Howell R.C. King S.J. Palmisano

Board Affairs CommitteeW.V. Shipley (chair) M.J. Boskin W.W. GeorgeP.E. Lippincott H.A. McKinnell, Jr.

Compensation CommitteeW.R. Howell (chair)J.R. HoughtonR.C. King S.J. PalmisanoW.V. Shipley

Finance CommitteeR.W. Tillerson (chair) M.J. BoskinJ.R. Houghton P.E. Lippincott M.C. Nelson S.J. Palmisano

Public Issues CommitteeM.J. Boskin (chair) W.W. George H.A. McKinnell, Jr.M.C. NelsonW.V. Shipley

Executive CommitteeR.W. Tillerson (chair)J.R. HoughtonW.R. HowellP.E. LippincottM.C. Nelson

Only independent directors serve on the Board Affairs, Compensation, Audit, Public Issues, and Contributions Committees;

The Board conducts executive sessions involv-ing only independent directors after each regularly scheduled Board meeting. These sessions are presided over by the Chairs of the Board Affairs and Compensation Committees on a rotating basis, depending on the primary subject matter under discussion; and,

Key Board committees meet between 6 and 11 times per year, as follows: Audit (11), Compensation (9), and Board Affairs (6).

Citizenship and the Board. Corporate citizenship issues are governed by the full Board and its commit-tees on Public Issues, Board Affairs, Contributions, Compensation, and Audit. For example:

The Public Issues Committee reviews safety, health, and environmental performance, and discusses key issues including management of climate change risk;

The Public Issues Committee visits an operating site each year, often with an environmental oversight element as part of its agenda;

The Board Affairs Committee recommends nominees for election to the Board, and discusses developing trends in corporate governance;

The Board Advisory Committee on Contributions reviews the contributions strategy and budgets;

The Audit Committee preapproves all audit and non-audit services to be provided by the indepen-dent auditors; and,

The Compensation Committee reviews and approves goals and objectives relevant to CEO compensation and evaluation.

Internal controls over financial reporting. ExxonMobils governance practices and nancial controls meet the requirements of the Sarbanes-Oxley Act and the NYSE listing standards. As part of the companys 2005 nancial statements, man-agement issued a report on internal controls over nancial reporting as required by Sarbanes-Oxley that concluded that our internal controls system is effective. Independent, registered auditors PricewaterhouseCoopers LLP conrmed this assessment by rendering an unqualied opinion on the effectiveness of our internal control system over nancial reporting.

Dividends and net share purchasesto shareholders$23 billion

Taxes andduties to government $99 billion

Capital andexploration expenditures$18 billion

Wages and benefits$12 billion

Payments to suppliers$211 billion

Total: $363 billion

(U.S. dollars, all figures rounded)

14

Mineral revenues stewardship award. The U.S. Department of the Interiors Minerals Management Services (MMS) selected Exxon Mobil Corporation to receive its 2005 Mineral Revenues Stewardship Award. The award is in recognition of the Corporations exceptional performance in reporting oil and gas production and paying royalties for mineral leases on federal and Indian lands. It honors ExxonMobil for overall accuracy and timeliness of its payments and reports, as well as for its cooperation and respon-siveness to compliance and enforcement requests.

For more information on corporate governance, go to exxonmobil.com/governance.

ShareholdersHalf of ExxonMobils common stock is owned by some 2.5 million individual shareholders with the remaining half owned by institutions. Our nancial success is good news for these individual sharehold-ers and the millions more who own shares through their pension plans, insurance, and mutual funds. Our strategy is to deliver superior shareholder value by efciently managing our business and rigorously evaluating new investments. This approach produces strong earnings and cash ows, which provide the basis for business investments and distributions to shareholders through dividend payments and share purchases. ExxonMobil stock has consistently out-paced the S&P 500 Index over the past ve-, 10-, and 20-year periods.

Investment approach. ExxonMobil pursues a highly disciplined investment approach to identify and select the most attractive investment opportuni-ties in all phases of the economic cycle. We test

2005 Distribution of receipts

potential investment opportunities over a wide range of economic scenarios. Post-investment, we complete a rigorous appraisal process to incorporate improvements into future planning. Our approach is based on an in-depth understanding of supply and demand for each business, and is sensitive to the fact that investment decisions can impact results for decades.

ExxonMobils level of investment is driven by the careful selection of quality, long-term opportuni-ties, not short-term volatility in the price of oil. The Corporation has reinvested $210 billion in its business over the last 15 years, essentially matching earnings, and recorded a capital investment in 2005 of $18 billion.

Shareholder distributions and returns. Over the long term, successful business investments and efcient operations should translate into share price appreciation which, combined with dividends, provide superior total shareholder return.

ExxonMobil has paid dividends for more than 100 years, and annual dividends per share have increased in each of the past 23 yearsa record among international oil companies. We distributed $23 billion in 2005 to shareholders in the form of dividend payments and share purchases to reduce shares outstanding, an increase of more than 50 percent over 2004.

Since 2001, we have distributed more than $71 billion to shareholders in dividends and net share purchases. The share buyback program has reduced shares outstanding by 11.5 percent and positively impacted 2005 earnings per share by $0.56 per share.

In October 2005, ExxonMobil was among the rst energy companies to sign a Memorandum of Understanding with the government of Kazakhstan upholding the transparency of payments from oil and gas revenues. Signing for the Corporation was ExxonMobil Kazakhstan Inc. General Manager David Willis.

Economic responsibility

15

Our shareholders have beneted from our consistent nancial and operating performance by the unique combination of high returns with low relative risk.

Shareholder engagement. ExxonMobil manage-ment dialogues with institutional and individual shareholders throughout the year to discuss the Corporations performance and positions as well as to listen to concerns. We communicate with our shareholders at annual analyst and shareholder meetings, quarterly earnings teleconferences, periodic Web-casts on special topics, as well as through conferences, shareholder dialogue ses-sions, and our publications.

In 2005, we met with specic groups of sharehold-ers involved in socially responsible investing (SRI) including labor unions (AFL-CIO, building trades); SRI funds (Walden Asset Management, F&C Asset Management, Christian Brothers Investment Services, Green Century Capital Management, Interfaith Center for Corporate Responsibility); state pension funds (California, New York); and NGOs (Amnesty International, People for the Ethical Treatment of Animals). Our constructive dialogues covered a range of citizenship issues from climate change and biodiversity to human rights and community engagement. These dialogues are valuable and we plan to continue them in 2006.

Shareholders and other interested parties can send communications to individual directors or to non-employee directors as a group, either in writing to the corporate address or by e-mail from the corpo-rate governance page of our Web site at any time: exxonmobil.com/directors.

TransparencyExxonMobil supports transparency, opposes cor-ruption, and is committed to honest and ethical behavior wherever we operate. Transparency is fundamental to good governance, and can help eradicate corruption and ensure that a countrys revenues are used to provide a better standard of living for its citizens.

Disclosure and consent. Sovereign host govern-ments have the right to set rules for the disclosure of taxes and other nancial obligations paid to them by companies such as ExxonMobil. Where disclosure is limited, we respect our contractual obligations and host-government laws. Gaining consent from host governments for increased disclosure requires government-to-government dialogue, along with

the assistance of international nancial institutions (IFIs). ExxonMobil has been actively involved in this dialogue and is ready to further this process among governments and IFIs.

To be successful, any transparency initiative must meet three key criteria. First, it must apply to all companies seeking to do business within a country. Second, it must protect truly proprietary information. Finally, it must not breach contractual obligations or violate host-country laws.

Transparency agreements. ExxonMobil has agree-ments with ve governments regarding transpar-ency of payments: Chad (1999); Azerbaijan (2004); the Joint Development Zone of Nigeria/Sao Tome and Principe (2004); Kazakhstan (2005); and Nigeria (2005). Payments to the Chadian government have been posted on the World Bank Web site since rst oil in 2003. Payment of a signature bonus for the award of Block 1 was made public by the govern-ment of Sao Tome and Principe in 2004. Azerbaijan has published reports on its oil and gas revenues for 2003 and 2004. Kazakhstan is in the initial stages of implementing the U.K. Extractive Industries Transparency Initiative (EITI), and should publish its rst report covering the years 2004 and 2005 in mid-year 2006.

ExxonMobil also remains constructively involved in the dialogue regarding the EITI. We have offered encouragement to the government of Nigeria as it simultaneously proceeds toward implementation of both the EITI and the G-8 Transparency Initiative. We have also offered our support to the government of Equatorial Guinea and the World Bank as they

In Chad, vast areas of the country are cut off during the rainy season due to ooding. This bridge, near Ham, was built with oil revenue allocated on an emergency basis to re-place a collapsed bridge, which cut off access for a wide region that depend-ed on the bridge to reach the main highway to the capital at NDjamna.

16

Economic responsibility

proceed to implement EITI in that country. We stand ready to engage with other countries as they make known their intentions to implement transparency initiatives as well.

Update: Chad revenue management plan. In 1999, the government of Chad and the World Bank put in place an unprecedented Revenue Management Plan (RMP) for the allocation of oil roy-alties, including monitoring by representatives of civil society. Under the provisions of the RMP, 72 percent of oil development royalties are to be used for social development projects. Since rst oil in 2003, more than $420 million in revenues has been managed in accordance with the plan. Esso Chads role under the law has been to transparently report revenues paid into an offshore escrow account.

The International Monetary Fund estimated that spending in the four priority sectors tripled by the end of 2005 versus the era prior to oil development. Progress on priority sector projects is limited only by the capacity of the country to identify and implement projects approved by the Revenue Management

2005 business performance highlights Record earnings of $36.1 billion, highest in the history of the Corporation with strong contributions from all segments of the business;

$18 billion invested in the business, about 20 percent more than prior year and over 40 percent more than 2001;

Dividends exceeded $7 billion while share purchases to reduce shares outstanding grew by $8 billion to $16 billion for total distributions to share-holders of $23 billion, bringing cumulative distributions to shareholders since 2001 to more than $71 billion;

Total liquids and gas production available for sale was 4.1 million oil-equivalent barrels per day, exceeding all competitors;

Renery throughput was 5.7 million barrels per day, highest since 2000 following the merger;

Petroleum product sales were 8.3 million barrels per day, highest since 2000 following the merger; and,

Petrochemical prime product sales volume was 26.8 million tons, second- best year ever, and 4 percent lower than the 2004 record.

College, a nine-member panel of citizens that ensures adherence to the established allocations. To date, the college has managed about 150 projects in various stages of completion.

In late 2005, the government of Chad, facing signi-cant nancial difculties, began a review of the RMP which concluded with a change in the law. These changes include: 1) increasing the percent of oil royalties available to the government for discretion-ary spending; 2) eliminating the Future Generations Fund; 3) expanding the priority sectors to include justice, security, and territorial administration; and, 4) specifying that oil royalties generated by elds outside the original three producing elds will come under the auspices of the RMP. The changes to the RMP have led to discussions between the Chadian government and the World Bank.

ExxonMobil is supportive of the dialogue between the World Bank and the Chadian government to address nancial difculties. ExxonMobil continues to believe that the overall structure and framework of the RMP are sound and should be retained.

CustomersExxonMobil is continually researching and striving to understand evolving customer needs and prefer- ences as well as to respond to consumer concerns. We regularly evaluate our products to identify poten-tial risks to employees, customers, or the environ-ment. As detailed on pages 4851, we maintain a robust product stewardship process through our product safety policy. In addition, we recognize that gasoline price volatility has been a major issue for our retail customers in 2005.

Capital managementWe view our nancial strength as a key competitive advantage. ExxonMobils long-term debt securities have maintained the top credit rating from major credit-rating agencies for 87 consecutive years. And in 2005, our cash balances were well in excess of debt. We are, in fact, one of the few AAA/Aaa-rated U.S. nonnancial corporations.

025

50

75

20052004200320022001

Cumulative share buybacks* Cumulative dividends

*Net of shares purchased to offset dilution associated with benefit plans

Distributed over $71 billion to shareholders over last 5 years

($ billions)

17

Cumulative shareholder distributions

ExxonMobils sound nancial position gives us the opportunity to access the worlds capital markets efciently across the full range of market conditions, and to take advantage of business opportunities whenever they arise.

Suppliers and contractorsExxonMobil strives to grow procurement of goods and services from qualied, competitive local sup-pliers as a means to strengthen local economies in the communities where we operate. For example, in Sakhalin in 2005, we awarded contracts valued at over $150 million to Russian companies supporting our development and production operations, bring-ing our total contracting with Russian suppliers over the last 10 years to $3.2 billion.

In 2005, we purchased goods and services, including crude oil and products, valued at $211 billion glob-ally. In addition, we spent $18 billion on capital and exploration expenditures.

Responsible supply chain management. Responsible supply chain management is important to ExxonMobil. We contractually require our sup-pliers to comply with all applicable environmental, health, safety, and labor laws for themselves and their subcontractors. Safety management criteria and adherence to our drug and alcohol policies are also written into contracts with suppliers. Compliance is monitored through site visits and assessment proce-dures. Furthermore, we encourage our contractors and suppliers to conduct business consistent with our Standards of Business Conduct.

Support for minority- and women-owned businesses. ExxonMobil purchased materials and services from more than 2500 U.S.-based minority- and women-owned businesses in 2005. Many of these suppliers are located in communities where ExxonMobil has a signicant business presence, such as Texas, Virginia, and the Gulf Coast of the United States. Purchasing from minority- and women-owned businesses not only brings quality and competitive pricing to ExxonMobil, but also helps strengthen the communities where we live and work. In the United States, our Supplier Diversity Program ensures that qualied minority-owned and women-owned suppliers are included in our procurement sourcing process. We manage supplier diversity in our procurement planning as well, by establishing objectives within each commodity and service area to guide us.

In addition to offering contract opportunities to minority- and women-owned businesses, ExxonMobil funds scholarships for minority and women sup-pliers to attend the University of Virginias Darden Graduate School of Business Administration, Northwestern Universitys Kellogg Graduate School of Management Executive Program, and The University of Texas Executive Education Seminar. ExxonMobil senior executives, buyers, and supplier diversity advocates serve on regional councils and committees dedicated to supplier diversity develop-ment and providing training to suppliers in negotia-tion, business plan development, and accounting.

In 2005, ExxonMobil was recognized by several organizations in the United States for its minority- and women-owned supplier partnerships. Corporate recognition included the Louisiana Minority Business Council Corporation of the Year Award, the Houston Minority Business Council Professional Services Development Award, and listing on DiversityBusiness.com as one of Americas leading companies in promoting multicultural business opportunities. In addition, ExxonMobil spent $135 million in 2005 with certied women-owned busi-nesses in the Houston area, a 33-percent increase over the previous year.

Continue to invest in nding, developing, and delivering energy supplies to meet growing demand while securing the long-term future of our company.

Maintain active communication with shareholders and the investment community.

Further our active sup-port of transparency, through agreements with Chad, Azerbaijan, Sao Tome and Principe, Kazakhstan, and Nigeria.

Economic priority areas for

2006

1. Management,leadership,

commitment, and accountability

Employeesare held

accountable forperformance.

11. Operationsintegrity

assessment and improvementA process that

measuresperformance relative

to expectations isessential to improve operations integrity.

2. Risk assessment and managementSystematic reviews evaluate risks

to help prevent accidents.

3. Facilities design and constructionConstruction projects from small improvements

to major new expansions are evaluated early in their design for safety, health, and environmental impact.

4. Information and documentationInformation that is accurate, complete, and accessible

is essential to safe and reliable operations.

5. Personnel and trainingMeeting high standards of performance requires

that employees are well trained.

6. Operations and maintenanceOperations and maintenance procedures are

frequently assessed and modified to improve safetyand environmental performance.

7. Management of changeChanges must be evaluated for safety, health,

and environmental impact.

8. Third-party servicesSafe, secure, and environmentally responsible

operations required.

9. Incident investigation and analysisAny incident, including a near miss, is investigated.

10. Community awarenessand emergency preparedness

Good preparation can significantly reduce the impact of an incident.

OperationsClearly defined expectations

Driv

er

Evaluation

Operations IntegrityManagement System (OIMS)Safety, security, health, and environment

18

Section two

Integrity in our operations

Framework for performance

The 16 foundation policies of ExxonMobils Standards of Business Conduct

Complete statements regarding these policies can be found in the ExxonMobil Standards of Business Conduct downloadable from exxonmobil.com/sbc.

ExxonMobil has an unwavering commitment to high ethical standards, opera-

tions integrity, and flawless execution. This is embedded in our company culture

and implemented through our management systems. Our Standards of Business

Conduct form the foundation for this commitment, with 16 corporate policies in

addition to the company-wide expectations for open-door communication.

Equal employment opportunity

EthicsHarassment

in the workplace

Conicts of interest

Gifts and entertainment Antitrust

Corporate assets

International operations

Customer relations and

product quality

Alcohol and drug use Directorships

Political activities

Safety

Product safety

Environment

Health

1. Management,leadership,

commitment, and accountability

Employeesare held

accountable forperformance.

11. Operationsintegrity

assessment and improvementA process that

measuresperformance relative

to expectations isessential to improve operations integrity.

2. Risk assessment and managementSystematic reviews evaluate risks

to help prevent accidents.

3. Facilities design and constructionConstruction projects from small improvements

to major new expansions are evaluated early in their design for safety, health, and environmental impact.

4. Information and documentationInformation that is accurate, complete, and accessible

is essential to safe and reliable operations.

5. Personnel and trainingMeeting high standards of performance requires

that employees are well trained.

6. Operations and maintenanceOperations and maintenance procedures are

frequently assessed and modified to improve safetyand environmental performance.

7. Management of changeChanges must be evaluated for safety, health,

and environmental impact.

8. Third-party servicesSafe, secure, and environmentally responsible

operations required.

9. Incident investigation and analysisAny incident, including a near miss, is investigated.

10. Community awarenessand emergency preparedness

Good preparation can significantly reduce the impact of an incident.

OperationsClearly defined expectations

Driv

er

Evaluation

Operations IntegrityManagement System (OIMS)Safety, security, health, and environment

19

Building on this policy foundation, we rigorously ap-ply management systems to drive performance. Our Operations Integrity Management System (OIMS), provides the framework for managing safety, health, security, and environmental risks at our facilities worldwide. Lloyds Register Quality Assurance at-tested in 2004 that OIMS meets all requirements of the International Standards Organizations environ-mental management systems standards (ISO 14001), and monitors ongoing performance annually.

OIMS is comprised of 11 elements, each with clearly dened expectations that every operation must fulll. These elements address all aspects of safety, security, health, and environmental man-agement from new project inception to ongoing operations. It helps ensure that every operating organization has the resources, skills, systems, procedures, and tools to perform safely, reliably, and with environmental care.

OIMS is also the system we use to ensure appropri-ate engagement with the communities in which we operate. Under OIMS, we conduct social and environmental impact assessments for new projects, and we use Best Practices in External Affairs (BPEA) guidelines as a strategic planning and management tool for operations around the world.

In addition, OIMS includes a detailed process for ongoing improvement. Under OIMS, every operat-ing unit undergoes a regular cycle of improvement consisting of annual self-assessments and cross-functional assessments every three to ve years. Additionally, every ve years, we review OIMSs overall effectiveness. For example, as a result of our most recent review, we added new, more stringent security system requirements.

OIMS is not simply a set of guidelines. Business line managers at every location across the globe are ex-pected to comply with all relevant OIMS requirements.

Applying OIMS around the world During 2005, over 150 assessments were per-formed at ExxonMobil sites by teams both internal and external to each site.

20

Environmental performanceSection three

Reduce spillsIn 2005, we reduced our spills to the environment by 20 percent.

Improve efficiencyThrough our Global Energy Management System, launched in 2000, we have captured energy savings that reduce CO2 emissions by about 7 million metric tons per year.

Respond to climate change riskExxonMobil is taking action on a global basis to improve efciency, reduce aring, and develop technologies that offer long-term solutions.

Focus areas

Develop new technologiesIn 2005, ExxonMobil continued its ongoing effort to develop and deploy state-of-the-art technologies to improve environmental perfor-mance and reduce costs.

ExxonMobil is committed to operating responsibly everywhere we do business by implementing scientically sound, practical solutions to meet energy needs in an environmentally respon-sible manner. Throughout 2005, we have communi-cated our commitment in detail across all business lines and at all levels.

It is our long-standing policy to conduct business in a manner that considers both the environmental and economic needs of the communities in which we op-erate. We seek to drive incidents with environmental impact to zero, and to operate in a manner that is not harmful to the environment.

Protect Tomorrow. Today. In 2005, ExxonMobil senior management reinforced expectations to all business lines for superior environmental perfor-mance. This leadership-driven initiative is called Protect Tomorrow. Today.

In recent years, our businesses have continued to improve environmental performance. Oil spills are among the lowest in the industry, and cogenera-tion capacity, which boosts energy efciency in our operations, is among the largest in the world. In addition, we have developed and implemented Environmental Business Planning (EBP) as part of the annual business planning cyclean important tool for managing environmental performance as an integral part of each operation and project.

Building on this progress, senior management launched Protect Tomorrow. Today. to provide further guidance on corporate environmental

expectations, with the goal to continue improve-ment in our environmental performance. Specically, business lines are expected to:

Deliver superior environmental performance, leading to competitive advantage;

Drive environmental incidents with real impact to zero; and,

Achieve industry leadership in key environmental areas relevant to each business.

Environmental Business Planning (EBP)EBP integrates environmental improvement into overall business plans and strategies. Businesses are expected to use EBP to identify key environmental drivers, set objectives in key focus areas, and estab-lish strategies, projects, and other actions to achieve those objectives. For example, we are focusing on reducing spills and improving water efuent quality in our Downstream business, and reducing spills and aring in our Upstream business.

In addition, site-specic sensitivities and focus areas are identied and addressed as part of EBPs. For example, in Norway, commercial shing and sh farming play a dominant economic and societal role. ExxonMobil follows a principle of coexistence with other users of the sea, and works to accommodate their environmental concerns into our environmental business plans.

Similarly, our Japanese afliate, TonenGeneral, has incorporated cohabitation strategies with neighbor-ing tangerine farms into its business management

Our cogeneration capacity increased by 12 percent in 2005. In addition to the emissions savings captured by our Global Energy Management System, our total cogen-eration capacity represents a GHG reduction of 9 million metric tons, versus conventional power and steam generation.

12%increase in

cogeneration capacity

1.Assess

expectations ofmanagement and

shareholders to establishthe overall vision of our

environmental leadership, guided by our corporate

environmental policyand expectations to

Protect Tomorrow. Today.

2.Review

data for currentenvironmental

performance, including emissions, incidents,

and regulatorycompliance.

3.Consider

drivers of futureenvironmental performance including new regulations,

updated technologies, community concerns, internal and external

competitor performance, and new projects.

4.Evaluate

data and drivers toidentify locally importantareas of environmentalimprovement, potential

regional and globalenvironmental priority

areas, and possible siteswhere performance

merits special attention.

5.Establish

global and regional priorityareas through managementreview and communication

of targeted reductionsand completion dates forenvironmental metrics.

Management also identifiessites for conducting

performance improvement assessments.

6.Identify

local Strategic Environmental Focus Areas (SEFAs) based on an assessment of site-specific performance and

drivers, assessment of selected environmental performance

indicators, and the sites ability to make a significant

contribution to regional or global priority area improvement targets.

7.Develop

plans, with specificimprovement initiatives,

to deliver the desiredimprovement in SEFAs.

9.Prepare

environmental performance indicators (EPIs)

and forecast accounting for planned and potential

initiatives to confirm improvement progress.

10.Review

SEFAs, metrics, targets,and forecasting withtop management to

calibrate the process for the subsequent year.

11.Assess

results of prioryears activities against

plans and targets.

8.Plan

resources for improvement initiatives

and submit items requiring approval into

the overall business planning process.

Environmentalbusiness planning

in refining:a step-by-step

approach

21

system at its Wakayama plant. The facility manages the impact of its operations with particular atten-tion to the environmental issues of nearby orchards. Renery employees and farm owners team up to share patrol, monitoring, and testing duties, and proactively communicate their ndings to the neigh-boring community.

We also consistently seek to improve operations reliability around the world. We use advanced technology in new projects to continually improve our safety and environmental performance. At many of our reneries, including facilities in Baton Rouge, Antwerp, and Rotterdam, we have embarked on a major project to install advanced computer control equipment to promote more stable and reliable operations. These projects are expected to result in fewer upsets and environmental incidents, and greater safety, while creating a more efcient and protable operation.

In populated areas our operating sites regularly en-gage with local communities to provide input to EBPs. For example, our U.S. renery and chemical plants meet frequently with community advisory panels, made up of local ofcials and residents, to discuss op-erations and environmental and safety performance.

At our renery in Slagen, Norway, community con-cerns are being addressed by a project to reduce both noise and nitrogen oxide (NOx) emissions. To accomplish this, we are installing low NOx burners in several process furnaces. We are also replacing the are unit. By late 2007, we estimate that NOx emissions will be halved from their pre-improvement levels. Concurrently, we have decreased the noise level in the noisiest areas of the renery by 25 per-cent, thereby reducing the noise impacts on the local community.

22

Environmental performance

For new projects and developments, environmental and social impact assessments are conducted that review factors such as community concerns, sensitive environmental habitats, and future regulatory devel-opments. The assessment results are integrated into project decision making.

Climate scienceManaging the risks from increases in global green-house gas (GHG) emissions is an important concern for ExxonMobil, industry, and governments around the world. We support the public reporting of GHG emissions on a consistent basis by all companies. We advocate for policy decisions that consider the con-sequences not only for environmental risks, but also for social and economic development, especially in developing countries.

Our efforts to manage GHG emissions include actions to reduce energy use and emissions in our own operations as well as to help customers use our products more efciently. We also work with the scientic and business communities on leading re-search to identify economically viable technologies that can meet future energy demand while dramati-cally reducing global GHG emissions. Examples include our work in advanced fuels, lubricants, and combustion technologies, as well as our support of the Global Climate and Energy Project (GCEP) at Stanford University, which represents the largest-ever privately funded research effort in low-greenhouse- gas energy.

Climate science: what we know. ExxonMobil has conducted and supported climate science research for 25 years. Our work has produced more than 40 papers in peer-reviewed literature, and our scientists serve on the Intergovernmental Panel on Climate

Change (IPCC) and numerous related scientic bod-ies. Contributed papers on climate science are listed on our Web site.

Based on this experience, we recognize that the accumulation of greenhouse gases in the Earths atmosphere poses risks that may prove signicant for society and ecosystems. We believe that these risks justify actions now, but the selection of actions must consider the uncertainties that remain.

Our world has changed. Since the 1800s concen-trations of carbon dioxide (CO2) in the atmosphere have increased by roughly 30 percent (from 280 to 380 parts per million today). Concentrations of other greenhouse gases have also increasedinclud-ing a doubling of methane levels. Human activities have contributed to these increased concentrations, mainly through the combustion of fossil fuels for energy use, land use changes (especially defores- tation), and agricultural, animal husbandry, and waste-disposal practices.

Surface temperature measurements have shown that the average global temperature has risen by about 0.6C since the mid-1800s. Other changes, consistent with the surface temperature rise, have also been observed. For example, scientists have documented a decrease in the volume of mountain glaciers and an increase in the length of growing seasons. These observations have fueled concern about the potential longer-term consequences of climate change.

Climate science is complex. The complexity of the climate system makes it difcult to understand past and future consequences of greenhouse gas increases. As a result, the extent to which recent temperature changes can be attributed to green-house gas increases remains uncertain.

Limits in climate knowledgefor example in de-scribing the behavior of clouds, hydrology, sea ice, and ocean circulationare well known and continue to be researched. Climate observations display sig-nicant natural variability that cannot be explained with existing models and knowledge. In the recent and ancient geological past, for example, climate has been both warmer and cooler than today for reasons that are not yet understood.

Projections of climate change require estimates of future emissions from energy use and other sources over the 21st century. In our own energy outlook, it is difcult to predict how technology will develop even over the next 25 years. Longer-term economic

In Japan, our afliate, TonenGeneral has de-veloped cohabitation strategies with neighbor-ing tangerine farms at its Wakayama renery. The facility factors the environmental importance of nearby orchards into its operations, and shares patrol, monitoring, testing, and community reporting duties with farm owners.

23

ExxonMobil recognizes the risk of climate change and its potential impact on societies and ecosystems, and we continue to take actions and work with others to address that risk. Our actions include investments and planning that address emissions today, as well as industry- leading research on technologies with the potential to reduce greenhouse gas emissions in the future. Our approach is closely aligned with the 2005 G-8 summit declaration on this issue.

In countries implementing the Kyoto Protocol, ExxonMobil complies with all laws and regulations. For example, we are participating in the Emissions Trading Scheme in Europe from 2005 onward. Furthermore, we continue to work on energy efciency and reduced emissions in each of our busi-nesses across the globe.

Like many other companies, we do not believe the Kyoto Protocol is the right approach to reduc- ing greenhouse gases. We are concerned it will impose signicant economic costs in the developed world while doing little to achieve its goal of addressing climate change. Developing countries, such as China, require most of the worlds increased need for energy to grow their economies, and have no comparable commitments.

Opposition to the Kyoto Protocol does not equate to a lack of concern about the environment or the issue of climate change. In fact, quite the contrary. ExxonMobil has taken, is taking, and will continue to take tangible actions to reduce emissions in our operations as well as in customer use of our products, and to better understand and prepare for the risks of climate change.

We believe that an effective, long-term climate policy should rst and foremost promote: Global participation; Transfer of efcient technology; Accelerated research and development of innovative, affordable low-greenhouse-gas technologies; Acceptance of the priorities of developing countries, which include economic development and poverty alleviation; and, Increased research in climate science.

Do you have a question regarding ExxonMobils environmental policies or practices? Please write to us at citizenship@exxonmobil.com.

A question about the Kyoto Protocol.

Why wont ExxonMobil recognize that climate change is real and take actions to support the Kyoto Protocol?

e-mail to citizenship@ exxonmobil.com

We were asked

and climate forecasts face even more uncertainty about how new technologies and changes in human behavior may affect greenhouse gas emissions.

As a result, researchers must rely on scenarios based on various assumptions, which deliver results ranging from signicant emissions growth (a threefold increase in emissions over the 21st century) to a drop in global emissions, even without policy interventions.

When climate models are used to analyze the implica-tions of these emissions scenarios, they project more severe consequences at the high endincluding sea level rises, droughts, and polar ice meltingand relatively benign climate changes at the low end.

Uncertainty and risk. While assessments such as those of the IPCC have expressed growing con-dence that recent warming can be attributed to

increases in greenhouse gases, these conclusions rely on expert judgment rather than objective, repro-ducible statistical methods. Taken together, gaps in the scientic basis for theoretical climate models and the interplay of signicant natural variability make it very difcult to determine objectively the extent to which recent climate changes might be the result of human actions. These gaps also make it difcult to predict the timing, extent, and consequences of future climate change.

Even with many scientic uncertainties, the risk that greenhouse gas emissions may have serious impacts justies taking action. The choice of action must consider environmental, social, and economic conse-quences, as well as recognize the long-term nature of climate change.

050

100

150

2005200420032002

Downstream Upstream ChemicalsCogeneration and HongKong Power

Direct equity CO2 equivalent emissions

(Million metric tons)

24

Environmental performance

Greenhouse gas (GHG) emissionsRecognizing the risk of climate change, we are taking actions to improve efciency and reduce greenhouse gas emissions in our operations.

We are also working with the scientic and business communities to undertake research to identify and develop economically competitive and affordable technologies to reduce long-term global green-house gas emissions while meeting the worlds growing demand for energy.

Global examples of ExxonMobils actions to manage and reduce GHG emissions include:

Reporting of GHG emissions; Energy efciency, including our Global Energy Management System and cogeneration initiatives; Flaring reduction; Natural gas production and sales; and, Research for the longer term.

GHG emissions reporting ExxonMobil is committed to consistent, comprehen-sive reporting of GHG emissions. We have publicly reported GHG emissions as they relate to our opera-tions for 1998 and subsequent years. The American Petroleum Institute has developed a Compendium of Greenhouse Gas Emissions Estimations Methodologies for the Oil and Gas Industry, which documents calculation techniques and emissions factors for developing GHG emissions inventories for oil and gas industry operations. It serves as the basis for our global calculations, unless local regulations require other methods.

Since 2003, ExxonMobil has reported direct GHG emissions associated with its equity ownership of all interests. Our total GHG emissions are essentially at from 2004 to 2005, with emissions from power and

cogeneration activities increasing while emissions from oil, gas, and chemical operations decreased. ExxonMobils investments in cogeneration increased our reported GHG emissions, but they lowered the emissions of companies that no longer need to pro-duce electric power for operations. The net impact of the cogeneration investments is an overall reduc-tion in GHG emissions. In our oil, gas, and chemical operations, business growth increases our GHG emissions, and we are continuing to make progress on emissions reduction steps to offset the impact of this growth.

Carbon dioxide makes up most of our GHG emis-sions, and it comes predominantly from our process-ing operations, including exhaust from combus-tion units and ares. Our GHG reporting includes emissions associated with the production of oil and gas, the rening of oil products, and the manufacture of petrochemicals. Our GHG inventory also includes emissions from company-operated marine vessels and road tankers. It excludes GHG emissions associ-ated with products sold.

Energy efciencyExxonMobils global operations consumed approxi-mately 1425 trillion British thermal units (BTU) of gas and electricity in 2005. Not surprisingly, we take energy efciency seriously. As we consider new capital projects, we use proven tools and processes to improve the efciency and emissions performance of our new investments.

Energy consumption is a major cost in all of our businessesparticularly manufacturing operations such as rening and chemicalas well as a source of emissions. Reducing energy consumed to manu-facture our products makes good business and environmental sense.

Greenhouse gas emissions (absolute)Netherlands: Energy efciency leads to lower emissionsExxonMobil sites around the world produce innovative approaches to reduce energy use in our operations. Our Rotterdam chemical facility staff discovered that reducing the number of steam boilers operating on-site from two to one not only met facility requirements, but also signicantly improved the sites energy efciency and reduced emissions of NOx. A team in Rotterdam developed an operating strategy that increased the efciency and reliability of the primary boiler, thereby dropping a second boiler to a hot standby position. The new system uses 10 percent less energy and reduces the sites emissions of NOx, to comply with new local legislation. The hot standby position concept is now being shared with other sites as a best practice.

Why doesExxonMobil

support energyefficiency?

Reduceenvironmental

emissions associated with providing

and using energy.

Make energymore affordableto consumers.

Reduce operating costs.

Extend theavailability of a verylarge, though finite,

base of energyresources to supportgrowing prosperity.

0

20

40

60

2005200420032002

Downstream Upstream Chemicals Direct equity CO2 equivalent emissions (excludes cogeneration)

(Metric tons of emissions per 100 metric tons of throughput)

0 0

4

8

12

8

16

24

050403020100

Energy efficiency Cogeneration Identified opportunities

(Million metric tons per year)

2006+

Flare reduction Energy efficiency Cogeneration

Total avoided emissions 2005

25

Avoided GHG emissions from ExxonMobil actions

Greenhouse gas emissions (normalized)

ExxonMobil has improved energy efciency across its operations for decades. We continue to undertake a broad array of operational changes and conduct targeted research and developm