Governance and risk management

Our Board of Directors oversees and provides guidance on the company’s strategy and planning. This includes opportunities and risks related to climate change and/or an energy transition. The effectiveness of our Board reflects the benefits from the diversity of strengths and experience of the individual directors, as well as their commitment and ability to work as a group in carrying out their responsibilities.  

The Board and its committees review:

• Long-term strategic plans.
• Stewardship of business performance.
• Litigation and other legal matters.
• Political and community policy and budget.
• Lobbying costs.
• Developments in sustainability and public policy.
• World energy supply and demand to 2050.
• Approach to help reduce GHG emissions in support of our emission-reduction plans and our net-zero ambition.

Directors engage with experts from inside and outside the company and apply their individual experience and perspective to oversee the company’s capital-allocation priorities, with a focus on growing shareholder value and playing a leading role in an energy transition. The independent lead director plays a key role in shareholder engagements and consults with the Chairman to develop Board meeting agendas.

The Board visits ExxonMobil sites regularly. These visits enable directors to observe firsthand and more effectively oversee safety, operating practices, environmental performance, technology, products, industry and corporate standards, and community engagement.

Our annual Proxy Statement contains more information about our Board, including guidelines for selection. 

Assessing climate — and other sustainability-related risks

The Board, collectively and through its Environment, Safety and Public Policy Committee, regularly engages with senior management on climate matters and a broad spectrum of interrelated risks. Informed by our Enterprise Risk Management Framework, this includes risks related to employee and community safety, health, environmental performance, and other topics related to our 14 Sustainability Focus Areas.

Our Enterprise Risk Management Framework

Our Enterprise Risk Management Framework provides a comprehensive and structured approach to identify, understand, prioritize, and manage ExxonMobil’s most important risks. It is designed to drive consistency across risk types and support monitoring key risks.

We assess climate change and energy transition risks across key risk areas of our Enterprise Risk Management Framework. This ensures a comprehensive and structured approach to managing potential impacts on our business.