ExxonMobil's Statement on Labor in the Workplace and its Supplier Vendor and Contractor Expectations documents prohibit forced or compulsory labor and compensation counter to labor laws, but are silent on the issues of legally permissible prison labor and the use of unpaid diversion program labor.

Financial and operational risks related to the use of prison and unpaid diversion program labor in a company's operations and supply chain can adversely affect shareholder value. For instance, the use of prison labor in supply chains can damage a company's reputation. In 2015, Whole Foods experienced significant backlash when customers learned that prisoner-made products were sold in stores. The use of prison labor can also lead to significant supply chain disruption. In 2018, various media outlets including Time Magazine and the Guardian noted that tens of thousands of prisoners orchestrated multi-week work stoppages to protest significant labor and human rights violations. As was reported in the New York Times, these protests are increasing in size and scope and future work interruptions are possible as states continue to debate ways to address prison labor. Colorado, for instance, recently passed Amendment A, which prohibits prison labor without pay.

Diversion program labor does not fall under the 13th amendment exemption. Participants in these programs have not been convicted of any crime. According to recent reports by the Center for Investigative Reporting (https://bit.lv/2LOArRa), diversion programs have supplied unpaid and involuntary labor to corporations, including ExxonMobil. This runs counter to the principles outlined in the Company's Statement on Labor and the Workplace and its Supplier Vendor and Contractor Expectations. Several legal complaints, including class action lawsuits, have been filed against corporations that utilize this labor. They allege violations of federal labor laws, which require employers to pay employees at least minimum wage, and human trafficking laws. Several state probes into the contracting companies supplying this labor have also been launched. This could lead to broader sanctions.

Although ExxonMobil's Statement on Labor in the Workplace and its Supplier Vendor and Contractor Expectations prohibit forced or compulsory labor and compensation counter to labor laws, we believe they lack sufficient attention to the use of prison and diversion program labor. Careful review of our supply chain for prison and unpaid diversion program labor could help ensure that ExxonMobil does not suffer reputational damage, or face supply chain disruptions.

RESOLVED: Shareholders of ExxonMobil urge the Board of Directors to adopt a policy committing the Company to take steps to address the use of prison and unpaid diversion program labor in its operations and supply chain. In doing so, ExxonMobil might consider surveying suppliers in order to identify sources of unpaid diversion program labor in its supply chain, reporting to shareholders on these findings and developing additional criteria or guidelines for suppliers and operators regarding the use of prison and diversion program labor.