business model and competitive advantages
We employ a business model focused on achieving excellence in our daily operations, generating superior cash flow, and creating long-term shareholder value. As a result of the consistent application of this proven business model, we possess competitive advantages that support strong results today and position us well for decades to come.
Our business model is supported by the following fundamental elements:
Operate in a Safe and Environmentally Responsible Manner
ExxonMobil employees are committed to excellence in safety, health, and the environment. Safety is a core value for us, one that shapes our decisions every day and at every level in our operations. A commitment to safety is the cornerstone of responsible operations and leads to better business results. In addition, in the area of environmental protection, we expect each of our businesses to deliver superior performance, lower incidents toward zero, and achieve industry-leading results.
We conduct business using an approach that is compatible with both the environmental and economic needs of the communities in which we operate. We have a number of programs to help advance the skills of local populations. These programs improve local business environments, lead to economic growth, and build stronger communities.
Uphold High Standards
We know that how we achieve results is as important as the results themselves. We choose the course of highest integrity in all of our business interactions. To support this objective, we have established a wide range of management systems that address critical aspects of our business. We expect disciplined application of these systems throughout the organization. Directors, officers, and employees must comply with our Standards of Business Conduct. ExxonMobil adheres to all applicable laws and regulations, and, when requirements do not exist, we apply responsible standards to our operations. We believe that a well-founded reputation for high ethical standards, strong business controls, and good corporate governance is a priceless asset.
Attract and Retain Exceptional People
Our goal is to develop our employees to have the best technical and leadership capabilities in the industry. We focus on merit-based, long-term career development and are committed to maintaining a diverse workforce. We recruit talented people from around the world and provide them with formal training and a broad range of global experiences to develop them into the next generation of ExxonMobil leaders. We know that delivering outstanding performance requires exceptional people.
Maintain Financial Strength
We maintain a financial position unparalleled in industry. Rating agencies Moody’s and Standard & Poor’s recognize our superior financial strength by assigning the highest credit rating to our financial obligations. We are one of very few public companies that have maintained this credit rating consistently for decades. Our financial strength gives us the capacity to pursue and finance attractive investment opportunities.
As a result of our proven business model, ExxonMobil has established competitive advantages that are evident across all three of our business lines – Upstream, Downstream, and Chemical. These competitive advantages set us apart from industry and serve as the foundation for ongoing superior performance and the creation of long-term shareholder value.
The quality, size, and diversity of our portfolio of resources, projects, products, and assets are unparalleled. The portfolio provides economies of scale and contains a large inventory of high-quality investment options across all business lines. It also provides us with the flexibility to take advantage of opportunities, supports future growth, and leads to strong financial and operating results.
We carefully assess investments over a range of potential market conditions and across time horizons that can span decades. Our approach to investing is to advance only those opportunities that are likely to provide long-term shareholder value. We focus on the efficient use of capital to achieve superior investment returns.
ExxonMobil is an industry leader in the development and application of technology. We pursue high-impact technologies that can significantly improve our projects, operations, and products. Our ongoing technology investments, supported by dedicated technology centers, provide the company with competitive advantages in key aspects of our business.
We employ management systems that are rigorously applied to our worldwide operations. These systems are designed to enable the consistent application of the highest operational standards. We also focus on maximizing value and enhancing efficiency in each of our businesses.
The global integration of our business lines and functional organizations allows us to capture significant value across the supply chain, at manufacturing sites, and more broadly, in the management of critical, shared activities. The level of integration results in structural advantages that are difficult for competitors to replicate.