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October 24, 2023

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ExxonMobil's goal is to spend $6 billion annually with diverse suppliers by 2025

2023 Billion Dollar Roundtable Best Practices Summit: Inductees

EXXON MOBIL CORP.

Q: When and why did your company start its supplier diversity program?

A: The ExxonMobil Supplier Diversity Program started in the early 1970s, but our dedication to supplier diversity dates back to the origins of the Green Book during the Jim Crow era.

The Green Book guided Black travelers to safe options along their journeys and advised which gas stations, hotels and restaurants would serve Black customers. The Standard Oil Co. of New Jersey, known today as ExxonMobil, was the only major retail distributor of the Green Book through its network of Esso stations. This was not mandated, yet we chose to make the right decision, at the right time, for the right reasons.

The Green Book also provided business opportunities for Black franchisees. Esso employed Black chemists, pipeline workers and mariners, and more than a third of Esso dealers in the 1940s were Black. We distributed the Green Book in our Esso stations until the late 1960s.

In 1973, ExxonMobil became a founding member of the Houston Minority Supplier Development Council. In 1980, we became active members of the National Minority Supplier Development Council [Inc.] and were founding members of Women’s Business Enterprise National Council in 1997. Ten years later, we expanded globally and joined WEConnect International, supporting women-owned businesses outside of the U.S., and we further expanded our program to include the LGBT community in 2018. We now support veterans, service-disabled veteran and businesses owned by people with disabilities. 

Pressing forward to the 1980s-1990s, Exxon and Mobil remained dedicated to supplier diversity, and when Exxon and Mobil merged in 2000, we merged our two supplier diversity programs. In 2005, we started our advocate network and have grown our current network from 44 to 600 advocates in procurement. Our network consists of passionate champions and ambassadors throughout 36 countries, representing more than 20 departments, with a focus on supporting inclusive and sustainable sourcing. We also launched our Tier II program to increase opportunities for diverse businesses with our prime suppliers. 

We have a history of doing the right thing and supporting the minority businesses that surround our operations. All diverse suppliers currently in our supply chain deliver real business value. ExxonMobil is honored to be the first oil and gas company selected for the Billion Dollar Roundtable and will continue to grow in this space.

Q: What is the significance of your company being inducted into the Billion Dollar Roundtable Inc. (BDR)?

A: Being Inducted into the Billion Dollar Roundtable is a formal commitment. We have had a supplier diversity program for over 50 years, but being inducted into the BDR is motivation to continue driving our supply chain to include diverse businesses. We see it as a privilege and responsibility to level up our diverse supplier base and encourage more companies to include diverse suppliers. We are working to make it easier for suppliers to do business with ExxonMobil, but we know it’s still a high bar. We’ll continue working closely with diverse suppliers to answer questions and determine the right approach for doing business with ExxonMobil.

Q: What advice would you give companies aspiring to earn BDR membership?  

A: Ensuring a diverse supplier base is not a one-time initiative — it’s a journey to a more diverse tomorrow.

ExxonMobil is pushing boundaries to drive our supply chain to include diverse businesses, and we encourage more companies to do the same, as it benefits the supplier, the company, and the communities in which we all work.

We encourage companies to include more diverse suppliers and demonstrate their commitment to global inclusive sourcing from diverse groups, including minority-, women-, LGBT- and disabled-owned businesses. 

Additionally, other companies should see BDR as a network of allies. We’re all here to support one another toward our common goal of promoting supplier diversity.

Q: What is your company’s spend goal with diverse suppliers over the next five years?  

A: Most companies in the BDR have made the required $1 billion commitment to certified diverse spending each year. Some companies spend more, which is incredible. ExxonMobil has a goal of $6 billion of diverse spend annually by 2025 (inclusive of self-certified companies). This will not be an easy feat, but if it was, it wouldn’t be a worthy goal.

To learn more about ExxonMobil’s supplier diversity program, visit corporate.exxonmobil.com/procurement/exxonmobil-for-suppliers/supplier-diversity.