Exxon Mobil Corporation | Risks from Use of Temporary Workers at EXXONMOBIL CORPORATION

Status
Withdrawn
AGM date
Resolution details
Company ticker
XOM
Resolution ask
Conduct due diligence, audit or risk/impact assessment
ESG theme
  • Social
ESG sub-theme
  • Decent work
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Energy
Company HQ country
United States
Resolved clause
Shareholders of Exxon Mobil Corporation (ExxonMobil) urge the Board of Directors to report to shareholders by the 2023 annual meeting, at reasonable cost and excluding proprietary and personal information, on flaring events and the risk of industrial accidents that may arise from the use of temporary replacement workers.
Supporting statement
The safe operation of ExxonMobil’s facilities is of great importance to ExxonMobil shareholders. According to one academic study, each casualty resulting from a petrochemical industrial accident corresponds to a market capitalization loss of $164 million, and that each toxic release corresponds to a loss of $1 billion.1 In our opinion, retaining an experienced workforce is a critical human capital management practice for ensuring the safe operation of petrochemical facilities. This proposal seeks disclosure of human capital management information that relates to flaring events and the risk of industrial accidents. According to ExxonMobil, Flaring is used in various stages of exploration and production operations throughout the world, primarily as a safety measure to prevent the accumulation of gases that could pose a potential safety hazard.2 For example, ExxonMobil’s Beaumont, Texas refinery experienced an operational issue which required flaring on June 25, 2021.3 On May 1, 2021, ExxonMobil locked out approximately 650 workers at its Beaumont, Texas, refinery and its blending and packaging plant. During the lockout, ExxonMobil has operated these facilities at reduced capacity with temporary replacement workers. We believe that ExxonMobil’s decision to operate these facilities with temporary replacement workers creates potential safety risks. In our view, temporary replacement workers lack the skill, training and experience of ExxonMobil’s permanent workforce. Flaring events and the risk of industrial accidents have a broad social impact on ExxonMobil’s workforce, the communities that it operates in, and the environment. We are concerned that the use of temporary replacement workers may increase the risk of such incidents. For these reasons, we believe that ExxonMobil’s Board of Directors should review the use of temporary replacement workers in ExxonMobil’s operations and provide greater transparency by issuing a report to shareholders. We urge you to vote FOR this shareholder resolution.

DISCLAIMER: By including a shareholder resolution or management proposal in this database, neither the PRI nor the sponsor of the resolution or proposal is seeking authority to act as proxy for any shareholder; shareholders should vote their proxies in accordance with their own policies and requirements.

Any voting recommendations set forth in the descriptions of the resolutions and management proposals included in this database are made by the sponsors of those resolutions and proposals, and do not represent the views of the PRI.

Information on the shareholder resolutions, management proposals and votes in this database have been obtained from sources that are believed to be reliable, but the PRI does not represent that it is accurate, complete, or up-to-date, including information relating to resolutions and management proposals, other signatories’ vote pre-declarations (including voting rationales), or the current status of a resolution or proposal. You should consult companies’ proxy statements for complete information on all matters to be voted on at a meeting.