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Chevron 2011 Corporate Responsibility Report
 

Chevron 2011 Corporate Responsibility Report

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Learn more about how Chevron is doing in important areas of our corporate responsibility (C.R.) efforts in our latest C.R. Report.

Learn more about how Chevron is doing in important areas of our corporate responsibility (C.R.) efforts in our latest C.R. Report.

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    Chevron 2011 Corporate Responsibility Report Chevron 2011 Corporate Responsibility Report Document Transcript

    • 2011 Corporate Responsibility Report i
    • Welcome3 4 8 12 18A Message Operational Indonesia: Colombia: U.S. Northeast:From Our CEO Excellence and Partnerships in Working With Unlocking Potential Risk Management Conservation the Wayúu in Pennsylvania Employees discuss and Preservation While respecting one Developing affordable how we manage our Our community of Colombia’s oldest energy begins with safe operations safely programs on the island cultures, we develop operations, environ- and reliably. of Java protect the energy responsibly and mental stewardship and environment and address local needs. trust with the community. sustain livelihoods. Human Rights 17 The Environment 21 Renewable Energy 11 Executive Interview 23On the cover: Chevron partners with the Wayúu community in Colombia to make sure that the company’s presence on Wayúu land does not affect traditionallife. Here (from left), Delilia Ipuana Uriana, Zaida Ipuana and Sophia Maria Epieyu are fishing, which is a traditional livelihood for the Wayúu and provides animportant source of food. Chevron worked with the community to develop commercial markets for their fishing, farming and traditional handicrafts.
    • Partnering for a Better Future We can accomplish great things when we work together. By building enduring partnerships, we promote mutual benefit for our business and the communities where we live and work. We dedicate our people, time and resources to working side by side with partners in many countries to find solutions that support human progress and economic development.24 28 34 38 40South Africa: California, Nigeria: Progress Update AdditionalFrom Education to United States: Transformative We share milestones InformationEmployment Partnerships Investments in our operations and and DataThe Cape Town That Inspire Our innovative communities. Performance DataRefinery works with the Our investments in partnerships support GRI and API/IPIECA Indexcommunity to provide education contribute to economic and social Assurance Statementtraining and foster economic development. change to improve the Glossaryeconomic opportunity. quality of life. About This Report Social Investment 31 Diversity 37 Executive Interview 33 1
    • “Our goal is to ensure that our social investments create measurable and enduring value.”How We Chose What to Include The Chevron Wayin Our ReportIn this report, we We consult governments, The Chevron Way definesselected case studies communities, nongov- who we are, what wethat demonstrate ernmental organizations, do and what we believe.our partnership and academic institutions At the heart of The Chevronperformance in geog- and others to help us Way is our vision … to beraphies where we do identify emerging issues, the global energy companybusiness, as well as topics develop our projects, most admired for itsassociated with our and respond effectively people, partnership andapproach to responsible to evolving challenges performance.energy development — and expectations.Operational Excellence, We make this visionenvironmental steward- We welcome your com- a reality by consistentlyship, human rights, ments on the content in putting our values intoworkforce development, this report and on our practice. The Chevronhealth and safety, and website at Chevron.com/ Way values distinguish ussocial investment. CorporateResponsibility. and guide our actions so that we get results theIn an industry as complex Feedback can be sent to right way. Our values areas ours, we recognize us at Chevron.com/ integrity, trust, diversity,that our ability to operate Contact/EmailChevron. ingenuity, partnership,depends on how well we protecting people and theaddress the business, environment, and highsocial and environmental performance.expectations of ourstakeholders. To read more about The Chevron Way, please visit Chevron.com/ChevronWay.2
    • A Message From Our CEO John S. Watson Chairman of the Board and Chief Executive Officer May 2012Affordable energy is a cornerstone the drawing board through daily where we operate. We apply theof human progress and economic operations; same fundamental approach to ourprosperity. We create value for our • environmental stewardship — our social investments that we applyshareholders by providing that means of reducing our impact on our to our capital investments.energy safely and reliably. operating environments; We work with our partners to identifyMany of our business operations • operational discipline — our approach and assess needs and to determineinvolve risk, which we work tirelessly to making certain that our employees the scale and focus of investments.to mitigate. We use processes and and contractors perform every task Our collaborative approach is rootedtools guided by our Chevron Way the right way, every time. in business discipline and focused onvalues and designed with one goal outcomes. And our goal is to ensure Each falls under our Operationalin mind: zero incidents. that our social investments create Excellence Management System, which measurable and enduring value, as guides how we manage risk through-Over the past decade, our concerted they do in the case studies highlighted out the company. I encourage you toefforts have helped us become an in this report. read more about our approach toindustry leader in safety. But, we’re Operational Excellence in this report. Over the past six years, we’ve investednot yet incident-free. We work tolearn from our incidents and those approximately $1 billion in areas Managing risk well helps us maximizeof others so that we can reach and essential to sustainable communities, the value of the investments we makemaintain our goal of zero incidents. including health, education and to find and produce energy. TheseThat is my personal commitment. economic development. investments are significant. Our capitalAnd I know that the men and women and exploratory budget in 2012 is It’s a matter of pride for us thatof Chevron join me in committing $32.7 billion, which will be invested in our 57,000 employees strive to maketo our world-class standards in energy projects that will produce Chevron the partner of choice byOperational Excellence. for decades, generate tax revenue, providing energy the right way and help create local jobs and support remaining a force for shared progressAt the heart of our work is an local businesses. and prosperity.ongoing focus on three areas criticalto operating incident-free: In addition to these direct economic• process safety — a system to help benefits, we also make significant recognize and reduce risks, from social investments in the communities 3
    • Operational Excellence andRisk ManagementWe focus on protecting the safety and healthof people and the environment and conducting ouroperations reliably and efficiently. The systematicmanagement of process safety, personal safety,health, the environment, reliability and efficiency toachieve world-class performance is how we defineOperational Excellence.To achieve Operational Excellence (OE), we created an Operational ExcellenceManagement System (OEMS) more than a decade ago. It’s part of our cultureat all levels of our business. OEMS helps us identify, manage and reduce risk;improve performance; assure compliance; and sharpen our emergency response.It is a system that sets expectations for nearly everything we do operationallyand goes beyond the scope of internationally recognized management systemsfor environmental as well as occupational health and safety (ISO 14001 andOHSAS 18001).Our OEMS Tenets of Operation guide our workforce’s daily decisions and activities.These tenets are founded on two key principles: “Do it safely or not at all” and“There is always time to do it right.” For example, every person working at aChevron facility has the authority and responsibility to stop work when witnessingany unsafe action or condition. Our goal is to have incident-free operations sothat people remain safe and the environment is protected.We strive to achieve Operational Excellence through our processes, standardsand behavior with leadership action and the full involvement of our workforce.We are among the leaders in our industry in preventing incidents and injuries,as measured by the Total Recordable Incident Rate and the Days Away From WorkRate. Our OE platform provides us with a way to sustain high expectations andcontinual improvement.To learn more, please read our OEMS brochure atChevron.com/OEMS.Tricia Padilla is an environmentalspecialist and Charles Odumah is asenior process engineer at Chevron’sRichmond, California, refinery.4
    • Striving to Achieve Operational Excellence On any given day, more than 250,000 employees and contractors from varying cultural and educational back- grounds work on our projects and in our operations. Through disciplined implementation of our Operational Excellence Management System, our diverse work- force applies OE processes, procedures and behaviors in our daily operations. On the following pages, employ- ees in leadership positions share their insights about Chevron’s OEMS in action. Reducing the Risk of Incidents“ It’s been a seven-year journey to achieving zero incidents in Bangladesh — one that required a cultural ‘paradigm shift.’ We started with an environment that had low safety awareness. By establishing a strong leadership commitment to safety, significant oversight of contractors, continual training and effective implementation of standard processes — such as management of safe-work practices — we changed the safety culture. Now, we have accumulated more than “ We strive to reduce the risk of incidents by 31 million workforce hours without a Days Away disciplined application of Chevron and industry From Work injury.” process safety standards and best practices, Kinnesh Dalal, Manager of Operational with a particular focus on our Asset Integrity Excellence/Health, Environment and Safety, Management Program. In 2011, as part of this Chevron Bangladesh program, we verified the integrity of more than 8,700 critical components of our facilities, includ- ing key pressure vessels and piping. We use the Chevron Risk Management Process for regular reviews of all facilities and capital projects and for action planning to reduce health, environmental and safety risks across our operations.” Artur Custodio, Manager of Production Operations, Chevron Angola 5
    • Assuring Compliance “ It’s our job in the OE audit group to verify “ Members of my team go into the field to assess that we have the right people, processes and contractor knowledge and then provide immedi- equipment in place to mitigate risks at all levels ate feedback. We collect data to help break the of our operations — from major capital projects incident chain before incidents happen. We’ve to daily maintenance programs. These audits conducted more than 14,000 safe-work-practice are conducted at an established frequency and assessments over a two-year period, and this involve hundreds of interviews, data collection effort has helped us significantly reduce our Days and checks that systems are in place to reduce Away From Work incidents.” risks. Chevron operates to the same standards Lane Blanchard, Contractor Management around the globe, and we are always looking Advisor for Health, Environment and Safety, for ways to improve upon what we are doing to U.S. Gulf of Mexico reach our goal of operating incident-free.” Jane Fruin, General Manager of the Corporate OE Audit Group Improving Performance“In 2011, we welcomed the Australian government’s “Our ultimate goal is zero incidents, so it is environmental approval for our Wheatstone important that we learn from the past and make Project in Western Australia. Because we have improvements to prevent the same incident had unwavering support for comprehensive from being repeated. We conduct reviews of all terrestrial and marine assessment and under- incidents and major near misses throughout standing of habitats and species, we have been Chevron. We use a team of subject-matter able to show that Chevron can manage the environ- experts to examine the root causes of the serious mental impacts and potential risks. Protecting incidents and near misses in our annual Major the environment is a fundamental part of our Incident Study. This helps us look for common Chevron Way values.” trends, determine where processes and pro- Andrew Mingst, Environmental Manager cedures may need to be improved, and identify of the Wheatstone Project, Chevron Australia opportunities to strengthen our OE culture and leadership.” Todd Levy, Vice President of Chevron Upstream 6
    • Preparing forEmergencyResponse “ Our first priority is to prevent emergencies, such as spills and releases, but we also need to be prepared to respond to them when they do occur. Our operating units develop site-specific emergency response and business-continuity Chevron’s OEMS plans that address and provide resources for all significant risks. We continually train our work- Tenets of Operation force and conduct drills to improve readiness. Our tiered emergency response system includes 1 Always operate within design local incident command teams supported and environmental limits. by corporate and external resources, which we recently deployed in Brazil and Nigeria.” 2 Always operate in a safe and Jeff Patry, Manager of Emergency Response for controlled condition. Corporate Health, Environment and Safety 3 Always ensure safety devices are in place and functioning. 4 Always follow safe work practices and procedures. 5 Always meet or exceed customers’ requirements.Response to 6 Always maintain integrity ofRecent Incidents dedicated systems.In late 2011 and early 2012, Chevron 7 Always comply with all appli-faced two incidents. Extensive training cable rules and regulations.and preparation helped the companyrespond quickly and effectively. In 8 Always address abnormalNovember 2011, during drilling opera- conditions.tions at our Frade deepwater projectin Brazil, hydrocarbons from the well- 9 Always follow writtenbore reached the seafloor through procedures for high-risk orseep lines. Our response significantly unusual situations.reduced the size of the sheen and 10 Always involve the rightstopped the source of the seep flowwithin only four days of first detection. “ Incidents such as these are vivid reminders people in decisions that affectAs a result, no oil reached any shoreline. of the risks we face in our business. Our procedures and equipment. Chevron values place the highest priority on the health and safety of our workforceIn January 2012, a fire started aboard and the environment, and our culture ofthe shallow-water jack-up drilling Operational Excellence challenges us dailyrig KS Endeavor, which was drilling a to learn and improve from every experiencenatural gas exploration well off the and observation. We continue to strivecoast of Nigeria. The quick implementa- for incident-free operations and sendingtion of emergency response procedures our entire workforce home without injury.”resulted in the safe evacuation of 152 Jim Swartz, General Managerpeople in eight minutes. Tragically, of Corporate Operational Excellencehowever, the incident claimed two lives. 7
    • 8.7 108 30,200 million farmers are partnering with Chevron to restore forests and improve trees have been planted through Chevron- supported environmental people are served by Chevron’s geothermal agricultural practices programs power operations in IndonesiaBird-watchers observe bird species inside Salak operations. During this trip, they identified species that previouslyhad not been recorded by the BirdLife Indonesia Association.8
    • Indonesia:Partnerships inConservation andPreservationWe work to increase environmental awarenessin our operations and in the community.Dayat Hidayat supports his three sons to improve farming practices near the commitment to environmental per-by growing chilis and long beans on a park and protect forests. We are also formance and helps us expand our1-acre (0.4-ha) plot within Indonesia’s working with the farmers to preserve business in Indonesia. We understandMount Halimun Salak National Park, traditional techniques such as crop that people, the natural environmentthe largest rainforest on the island of rotation and natural pest control, which and our operations are interdependent.Java, where farms, endangered species are critical to sustaining crop produc- In all our major capital projects, weand Chevron’s expansive Salak geo- tion rates. integrate biodiversity into our businessthermal operations coexist. Our ability decisions by using the environmentalto work with the community to balance For Hidayat, the conservation pro- stewardship component of our Opera-environmental stewardship, energy gram helps improve his business. tional Excellence Management Systemdevelopment and the community’s “The farming training has widened (OEMS). We work closely with govern-needs demonstrates how our partner- my perspective and provided me ment agencies, nongovernmentalships help protect the environment with knowledge about environmental organizations and community groupsand sustain livelihoods. protection and better agricultural to manage our operational footprint practices,” he said. “Understanding in order to protect the unique environ-Indonesia faces constant challenges to organic farming by using available ments where we are developing energy.produce more crops on limited arable resources in the environment is partland without encroaching further on of this work, like using sheep’s dung Mount Halimun Salak National Park isforestland. In areas in and around for fertilizer and learning good cattle- home to endangered species such asMount Halimun Salak National Park, breeding practices.” He said Chevron’s the Javan leopard, gibbon and hawk-timber was harvested to clear new assistance in establishing farming eagle. These animals are often spottedland for farming and for wood for cooperatives helps him pool resources inside Chevron’s Salak geothermalother businesses. In Hidayat’s village, and stabilize his income. operations areas. We partner with thethree-quarters of the 2,000 residents national park and local, national andare farmers. Hidayat and 107 farm- Business and the Environment international wildlife groups to protecters like him are working with us and Our ability to operate safely in unique wildlife habitats and maintain nurseriesour partners on a community-based environments such as Mount Halimun to restore trees that were used toenvironmental conservation program Salak National Park demonstrates our support local businesses. 9
    • In our day-to-day operations, we Building a Conservation Ethicfollow strict policies to leave wildlife We have a long-term commitmentundisturbed, and we design pipelines Planting to community-based environmentalto accommodate animal crossings. conservation programs in Indonesia.We collaborated with governmentauthorities to minimize tree removalduring pipe and well installation that 250,000 In 2002, we launched our partnership with the nonprofits Peduli Konservasi Alam Indonesia (PEKA Indonesia)was completed before the start of trees is a five-year and the Wildlife Trust to protectcommercial operation in 1994. We also goal of the Green Salak Mountain’s ecosystem. PEKA’splanted 3,000 trees inside our Salak Corridor Initiative work focused in part on environmentaloperations area as part of a regreen- education and protection. At thating effort. time, PEKA reported that the illegal poaching and sale of several beetle species in and around our Salak geothermal area were destroying forests and threatening biodiversityCommitment Beyond Compliance: and nearby communities’ agriculturalZero Water Discharge water supply. We continue to build upon conser-Starting in 2011, Chevron that are approximately excess produced water,” vation programs in areas near ourengineers successfully 1,000 feet (305 m) below said Ferry Martin, Chevron Salak operations, including the ruralimplemented a zero- the ground. Injecting the general manager of Health, farming communities in Bogor andwater-discharge system water into reservoirs is Environment and Safetyat our Duri heavy oil fields a preferred practice that in the region. “It’s a good Sukabumi. Unemployment is high inin Sumatra. Every day, eliminates any impact example of teamwork with those communities, where 60 percentwe produce approximately on natural canal systems. the government and our of the population in the Salak area1 million barrels of water We plan to expand this commitment to managing are women and youth. We partneras part of our oil operations zero-water-discharge our environmental foot- with the nonprofit Yayasan Binathere. More than 80 percent practice to other fields print. The government hasof the produced water is in Indonesia. asked us to share our best Usaha Lingkungan (YBUL) to educateused in enhanced oil recov- practices and applications farmers like Hidayat about rabbitery operations, while “We are among the few with other companies. and goat breeding as well as otherthe remainder is treated oil and gas companies in We’re proud to do that.” alternatives that will not degradeand put into government- Indonesia that implement forests or deplete the communities’approved reservoirs a zero-discharge policy forAbove: At its Salak geothermal operations, Chevron has a nursery that germinates seedlings of native species to plant and maintain withinthe operations area. The company also collaborates with a nearby tea plantation to plant trees along the plantation’s access road.10
    • “Chevron makes environmental protec- tion and community their priority,” said Gita Gemilang of YBUL. “Shifting the community’s dependency from Renewable forest products to other sources of income generation that could become Energy their alternative pillar of livelihood becomes crucial in this program. Chevron’s initiative is a path to sustain- ability for farmers.” Investing in renewable energy and energy In late 2011, we continued our support of conservation efforts by launching efficiency is one the Green Corridor Initiative, with of Chevron’s business a goal of planting 250,000 trees over strategies. five years. This effort helps restore the degraded forest that connects We take a pragmatic approach more than 1,200 acres (486 ha) of the to investments, focusing on three ecological zone of the Mount Halimun key areas that leverage our core Salak National Park forest corridor. competencies and existing assets: The initiative involves more than 1,500 our geothermal business; the people, the Mount Halimun Salak profitable, commercial-scale National Park, foundations, universities development of next-generation and local nongovernmental organiza- biofuels; and the development tions. In December 2011, our employ- of energy efficiency solutions. ees, Mount Halimun Salak National Park representatives and community Geothermal power is the most members planted the first 5,000 trees. significant segment of our renew- This effort is part of a much larger able energy portfolio. We are the one by the Indonesian government world’s largest geothermal power to rehabilitate the country’s damaged producer and have maintained forests and replant barren lands. operations in Indonesia and the Philippines for 30 and 40 years, In addition to our Green Corridor respectively. Our geothermal Initiative, in 2011 we worked with operations generate more than local schools, government agencies 1,250 megawatts of electricity perTop: The Javan hawk-eagle has a safe home and nongovernmental agencies to year — enough to meet the needsin the Mount Halimun Salak National Park, nearChevron’s Salak geothermal operations. plant 22,200 trees outside of the park of 16 million people in these twoBottom: Chili is one of the crops planted by local but near our operations in Bogor countries.farmers near Chevron’s operations. and Sukabumi and in the Jayanegara Through our technology ven- To see more of our activities in Indonesia, tea plantation. tures business, we partner withwatch the video at Chevron.com/CR2011/Indonesia. others to increase our knowledge In 2011, the Indonesian Ministry of biofuels and the technologyagricultural supply. Also, YBUL of Environment honored Chevron needed to transform natural rawencourages traders and craftspeople Geothermal Salak and Chevron materials into profitable, high-to switch from making furniture Geothermal Indonesia with the quality transportation fuels.from park timber to environmentally PROPER Gold and Green awards,friendly, income-generating work such respectively. The PROPER award isas cultivating vegetables and fruits — regarded as the most prestigious Learn more at Chevron.com/a program that contributes to local award in environmental stewardship EmergingEnergy.food supplies. In 2011, these programs in Indonesia.benefited more than 1,500 people. 11
    • Colombia:Working Withthe Wayúu12
    • For 35 years, Chevron has worked with Wayúu communities in Colombia,producing energy, strengthening the communities’ capabilities andrespecting local customs. Our partnership blends our ethics of safety,environmental responsibility and shared progress with importantvalues of the region’s Wayúu people: kindness, friendliness and respect.Jaime Epinayu (foreground) and his family are one of 600 families who participate in a Chevron-supported social investment program for fishermen in La Guajira in northern Colombia,where Chevron operates offshore and onshore natural gas fields in Wayúu indigenous territory. 4 million 172 22 households in Colombia Wayúu communities farms were created are supplied with natural were consulted before through Chevron’s pilot gas from Chevron’s Chevron began new program launched operations exploration in 2010 in 2011 13
    • Paul Pinedo grew up in a clan amongthe indigenous Wayúu people ofColombia’s coast and clearly remem-bers his first glimpse of an offshoredrilling platform. “I was 10 years oldand was fishing with my uncle. I askedhim what it was, and he said, ‘a con-struction from an alien civilization.’For us, we had never seen a buildingwith electricity in the middle ofthe sea,” Pinedo said.Today, Pinedo is 27 and a Chevronengineer, and he understands fullyhow the platform functions. Afterhigh school, he was unsure how hewould make a living, and talkingto a friend helped him gain an interestin engineering. Upon completing hiscollege engineering degree, Pinedostarted with Chevron as an intern andwas trained to work on the platformthat he first saw with his uncle. Hesaid he takes pride in bridging one ofColombia’s oldest cultures and themodern world of energy development.Pinedo’s story is a small part of a muchlarger one of how Chevron partnerswith the Wayúu, the national oil com-pany, the government and nongovern-mental organizations to developenergy in La Guajira, a region betweenColombia and Venezuela. Pinedo saidmost of those in his native Epinayuclan, which includes his 27 uncles andthree brothers, are not interested inleaving their community. ”They prefer Above: Wayúu community leader Maria Luisa Ipuana and her neighbors partner with Chevronfishing and farming,” said Pinedo. to expand their farming livelihoods and help improve their families’ nutrition.The Wayúu live in La Guajira and ownland near our coastal operations in the people of La Guajira and the rest Chuchupa gas field as well as thenorthern Colombia. Our relationship of Colombia. onshore Ballena and Riohacha gaswith the Wayúu reflects the way fields in La Guajira. We have becomePinedo bridges his two worlds. We A Long History, a Shared Future Colombia’s largest producer ofrespect local traditions, protect the Chevron first stepped foot in Colombia natural gas, supplying approximatelyenvironment, address community in the late 1920s to explore for oil, 4 million households. La Guajiraneeds and advance economic oppor- but it wasn’t until the 1960s that we supplies approximately 65 percenttunities. Our strong partnerships help discovered both oil and natural gas. of the country’s natural gas.us responsibly expand our operations, In partnership with Colombia’s nationalresulting in benefits to our business oil company, Ecopetrol, Chevron With natural gas reserves in decline inand quality-of-life improvements for operates and develops the offshore La Guajira, the national government14
    • partnered with Chevron in 2010 toexplore for new natural gas resourcesalong 233 miles (375 km) between the Increasing OpportunitiesLa Guajira shoreline and deeper ocean. for Education“Because of our reputation forenvironmental responsibility and our Support for education in Mayapo Ethno-Educational for Chevron who is Wayúu.longstanding relationship with the the communities where we Center to serve communi- “It is an excellent alterna- operate is important to us. ties in rural areas of the tive for families to be ableWayúu, we were able to move forward In La Guajira, we trained Manaure municipality. Now to send their children towith this important project,” said teachers, who have helped 1,200 children can receive this school. At Laachon,David Bantz, president of Chevron more than 1,500 students education and boarding. children are experiencingColombia. “It’s critically important to improve their national Also, the center provides the best Arijuna (Western)us that our operations embody the test scores. girls with greater access to education while keeping formal education. their ancestral backgroundrespect we feel for the people and Many Wayúu youth cannot and culture.”their land. Our efforts reflected that go to school because they “Wayúu children are receiv-commitment.” live too far away. Chevron ing top-level education both helped finance the con- in Spanish and Wayúunaiki,”Before beginning our exploration work struction of the Laachon said Danis Cohen, an analystin 2010, we spent a year consultingwith 172 Wayúu communities, each ofwhich is considered an independentgovernment entity. We invited Wayúuleaders to visit operations and talkabout their culture and concerns. Ourdialogue reaffirmed the foundationfor a constructive relationship.“The spoken word is important forus, and Chevron approached our com-munities like a neighbor who knockson your door,” said Victor ManuelEpiayu, who grew up in a Wayúu clanand works for Chevron on communityprograms. “The Wayúu have a lotof respect for that great attitude.”Following our initial outreach, we imple-mented our formal Environmental,Social and Health Impact Assessment(ESHIA) process to evaluate potential Above: To support the education of Wayúu children who live far from schools, Chevron helped fund the construction and operation of education centers, such as the Laachon Mayapo Ethno-Educationalimpacts on surrounding communities, Center, seen here.natural resources, biodiversity, air qual-ity, land use, waste management, noiseand public health. The assessment was our exploration site. To help ensure dirt roads were watered down toconducted in partnership with stake- safety, trucks and other vehicles limit truck dust so that children ridingholders to make sure that we captured heading to Chevron facilities were bikes to school were not affected.and addressed community concerns diverted from Wayúu water reserves Our exploration team also worked withabout reactivating natural gas fields and traditional pathways to the ocean. local fishermen to reduce the impactand drilling new-development gas wells. Cables used in the process were of our work on their livelihoods. positioned to avoid culturally sensi-From our discussions, we learned that tive areas. Livestock were temporarily We employed more than 360 localwe needed to change how we accessed moved from our work locations, and people, 60 percent of whom were 15
    • municipalities of Riohacha and Manaure, benefiting 100,000 indig- enous people. In the Mayapo rural area located in La Guajira, Wayúu communities are vulnerable to food shortages and have limited access to water, sanitation and health centers, in part because of the arid terrain. According to the 2010 Colombia Demographic and Health Survey, the rate of children facing malnutrition in La Guajira is 10 times higher than in the rest of the country. To address these needs, we built six health clinics in 2010 and launched a pilot program in 2011 that created 22 farms. By combining participation of professional farmAbove: Farmer Salvador Ipuana (foreground, left) and other Wayúu community farmers at the specialists with the ancestral wisdomrancheria speak with Victor Manuel Epiayu (foreground, right), who grew up in a Wayúu clan and of the Wayúu, the project promotesworks for Chevron to help implement community programs. the conservation of native species, the To hear from Wayúu people, watch the video at Chevron.com/CR2011/Colombia. control of pests, the planting of trees for timber and the development ofWayúu, to assist with the ESHIA “Chevron understands that meaning- foliage to provide shade.process. Then we added them ful social projects are not short-termto our exploration team to work on activities. They know it takes time The experimental farms have improvedproject support activities. The multi- and effort to achieve sustainable nutrition and income among partici-cultural team shared safety principles results,” said Gina Marcela Puentes of pants. As a result, we are working withand practices with each other in the Ecosfera Foundation, a nonprofit the local governments of the remainingSpanish; the local dialect, Wayúunaiki; organization that works with the 150 Wayúu communities to implementand English. Wayúu on programs to improve their similar programs. livelihood and preserve their culture.The seismic and drilling gas project “I have seen other companies that “Now we have options. We have food.was completed in 2011 without injury don’t even bother to go to the ranche- Without the support of Chevron, weor incident. According to the national rias (Wayúu villages) to talk with the wouldn’t have this,” said Maria Luisaoil company, Ecopetrol, and the Wayúu authorities. Chevron gives Ipuana, a Wayúu leader who benefitedMinistry of the Interior and Justice, the proper importance to each one of from the program.our consultation with the commu- the communities and the people, andnities and the social and environmental that really makes a difference.” Supporting a Way of Lifeprocesses we implemented have For Alberto Hernandez and his fellowthe potential to be a model for other, To collaborate on finding new ways Wayúu, fishing is a way of life. “Supportsimilar projects in Colombia. to improve the quality of life in La by Chevron has been important for us Guajira, Chevron became part of a and our families. Our fishing activitiesPartners in the Community 29-member Regional Commission for and our livelihoods are more developedWe continue to work with Wayúu Competitiveness composed of unions, and sustainable,” he said.communities to identify their areas of nongovernmental organizationsneed: infrastructure improvements, and other members of civil society. The platforms we built off the coast,educational and health programs, We partnered with the Ecosfera the first in 1973 and the second insustainable agriculture and fishing Foundation to drill and develop eight 1996, naturally became reefs whereindustries, and support for an emerg- drinking-water wells and improve the Wayúu saw an opportunity to fish,ing tourism industry. sanitation in rural areas of the but safety concerns prevented fishing16
    • Human Rights Our commitment to respecting human rights wherever we operate is grounded in The Chevron Way, which describes our vision and values.Above: Chevron engineer Paul Pinedo, who grewup in a traditional Wayúu community, studied We replaced our Human Rights all of which have responsibilitiespetroleum engineering and is one of the few in Statement with a corporate for meeting our human rightshis family to choose a nontraditional career. policy in 2009 to foster greater commitments.Below: Chevron provides training and marketing awareness of human rightssupport to help the small businesses of tradi- issues throughout the company The team conducted an exten-tional Wayúu artisans. and enhance our capabilities to sive review of Chevron’s existing manage them. Our Human Rights policies and practices, andaround active operations. To help Policy covers four areas relevant developed additional training andfishermen like Hernandez sustain to our business: employees, guidance to deepen the company’stheir fishing and develop commercial security providers, communities collective understanding andmarkets, we created artificial reefs and suppliers. We began deploying capabilities. The Danish Institutein deep water away from our opera- the policy in 2010, with full imple- for Human Rights providedtions. Through supplying equipment mentation projected for 2013. external advice.such as global positioning systems,along with technical training and We formed an internal, cross- From 2010 to 2011, we conductedfinancial assistance, Chevron helped functional, global team to guide orientation sessions with selectmore than 640 fishermen in rural implementation and enable en- executives and staff. In 2012,areas of the Manaure municipality in gagement from Human Resources; we will focus on deploying theLa Guajira. Global Security; Supply Chain updated training and guidance to Management; Policy, Government relevant parts of the business.We partner with the Wayúu to sup- and Public Affairs; Law; andport other small business enterprises. Health, Environment and Safety —The Wayúu have a tradition ofproducing colorful handmade bags,hammocks and blankets. We part- Learn more at Chevron.com/HumanRights.nered with Jalianaya — a cooperativeof Wayúu women from the Manauremunicipality — to provide trainingand marketing support to more than600 weavers to increase their income.“Our women lived off salt extractionand fishing. They fed on boiled fishand ate once a day, until the Chevron-led program empowered us to commer-cially exploit our crafts and have abetter life,” said Maria Cristina Gomez, aleader within the Wayúu community. 17
    • U.S. Northeast:Unlocking Potentialin Pennsylvania18
    • 700,000 446 60 acres (283,300 ha) of Chevron employees work wells were drilled in the the Marcellus Shale in western Pennsylvania area by Chevron in 2011 are leased by ChevronAt the site of a reclaimed natural gas field in western Pennsylvania,a producing well leaves a small footprint.As Chevron enters western Pennsylvania to develop natural gas fromthe Marcellus Shale, the company is striving to be the partner ofchoice, with a focus on safe and responsible development that promoteseconomic growth. 19
    • In Fayette County, Pennsylvania, Adding to Economic GrowthBill Jackson owns a dairy farm that his Marcellus natural gas can providefamily founded in 1940. It’s not unusual cleaner-burning, affordable energy,for him to log 18-hour days tending which supports energy security,to cattle and corn among the verdant regional jobs and economic growthrolling hills, rivers and forests typical of for the United States and places likethis rural area. A part of his farm is also Fayette County. Chevron is helpingleased for natural gas drilling. ensure that the people of southwest- ern Pennsylvania benefit from this“Natural gas is a resource that provides resource without compromising theirenergy for the country. It’s every bit communities or the environment.as much a part of the farm as the hay-field or the cornfield that we see A 2011 study by global informationabove the surface,” he said. company IHS estimated that by 2015, Above: Greg Hild (left), a Chevron business approximately 270,000 new jobs development manager, and Nate Calvert,Western Pennsylvania residents like will be created in the Marcellus region, a Chevron public affairs representative,Jackson share a strong work ethic. which could also support 1.6 million review operations plans at the natural gasBut with the decline of the steel and jobs by 2035. drilling site in Somerset County, Pennsylvania.coal industries over the past four Below: Bill Jackson has leased land on his dairy farm to Chevron for natural gas drilling.decades, the region has suffered Chevron drilled 60 wells in 2011 andeconomically and has seen a popula- will continue to expand operationstion decline. in ways that benefit local economies gas has the potential to have the big- while limiting negative impacts. gest impact on our region’s economy inIn early 2011, Chevron acquired According to Jackson, “The Marcellus my lifetime,” said Oliver, a governmentindependent natural gas producer industry has provided a much-needed and public affairs manager for ChevronAtlas Energy, Inc., and began producing boost to the economy. The hotels and operations in the region. According togas in southwestern Pennsylvania. restaurants are full. It has provided jobs the Pennsylvania Department of LaborNearly all of the 366 employees who for well operators, truck drivers, drillers & Industry, from late 2009 to earlyjoined Chevron as a result of the and excavators — a wide array of jobs.” 2011, 72,000 people were hired in theacquisition continue to work with us core and ancillary Marcellus industries.today. With more than 700,000 acres Chevron’s Trip Oliver grew up in Pitts-(283,300 ha) under lease in the burgh, Pennsylvania, and understands To encourage long-term job growth, weMarcellus Shale, Chevron is one of the importance of this opportunity. are partnering with Carnegie Sciencethe state’s largest leaseholders. “The development of Marcellus natural Center of Pittsburgh to launch the new Chevron Center for STEM Education and Career Development, which sup- ports science, technology, engineering and math (STEM) for students from preschool to high school in the region. “We need talented professionals — engineers, geologists, geophysicists and information technology special- ists,” said Bruce Niemeyer, head of Chevron operations in the region. “This program will help enable the Pittsburgh area to remain competitive in a 21st-century global economy.” Protecting People and the Environment Pennsylvania’s history of oil and gas To meet farmer Bill Jackson, watch the video at Chevron.com/CR2011/Pennsylvania. development dates back to 1859, when20
    • Colonel Edwin Drake developed the mental and safety professionals fromworld’s first commercial oil well at other operations to share best prac-a depth of 69 feet (21 m). The energyindustry has long known about huge tices and identify opportunities for improvement.” Chevron currently is Thegas resources trapped in shale rockthousands of feet deep across the working with regulators to strengthen regulations and with other energy EnvironmentUnited States. But only in the past producers to establish and enhancedecade have energy companies com- safety practices.bined two established technologies —hydraulic fracturing and horizontal Native Pennsylvanian Bryan Hajos We recognize thedrilling — to successfully unlock this worked for Atlas for four years and is value of fresh waterresource in the face of increased now a safe-work advisor for Chevron.energy demand. Hajos trains contractors and former as a fundamental Atlas employees in Chevron’s safety environmental and“Permission to operate depends on culture and procedures. One of our economic resource.our ability to do business responsibly. many tools used to drive safety per-Protecting land, water and commu- formance is the five-step stop-work As users of this critical naturalnities is our highest priority,” said authority: Stop the unsafe or at-risk resource, we must manageNiemeyer. “After the decline of this act, notify a supervisor, involve the water for the good of society,region’s coal mining and steel industries, right people in addressing the issue, ecosystems and industry, whichpeople here worked hard to clean up the resume work when the issue has been includes improving our water-environment. Western Pennsylvanians resolved and share what is learned. use efficiency.don’t want to give that up.” “We used stop-work authority to halt Chevron is committed to prevent-To foster dialogue between the com- a project to shore up a leased road, ing groundwater contaminationpany and local communities, we began which delayed the project, but made and spills, and meeting or surpass-work in 2011 to create an external advi- the road safer,” said Hajos. “With ing all regulatory and compliancesory council in Fayette County. The stop-work authority, contractors and requirements.council was established in early 2012, employees don’t need to explain lost To help enable the availabilityand we have plans to create additional productivity or time. New procedures, of safe and reliable freshwatercouncils in other areas. We participate training and values are creating a resources, we developed anin informational meetings, display our positive experience where everyone integrated corporatewide fresh-exploration and production equipment is looking out for each other.” water strategy that supportsat county fairs and other events, and responsible water stewardshipoffer media tours of well sites. Resi- Operating Responsibly and management. This strategydents also can ask questions or express “It only takes 10 seconds to scare peo- begins with prevention andconcerns through a community hotline. ple about the perceived risks of energy focuses on integrated practices development, but it takes months or that include well design andAfter acquiring Atlas, Chevron moved years to correct those misperceptions,” integrity, construction controls,quickly to share best safety and said Oliver. “It’s critical to communicate water use, handling, recycling,environmental practices with the new with southwestern Pennsylvanians and disposal.employees and contractors, using about our proven approach to unlock-our Operational Excellence Manage- ing natural gas from under their land.”ment System and underscoring ourcommitment to safe and responsible Producing gas from shale involvesoperations. “We acquired Atlas on a injecting water and special fluids intoFriday, and by Saturday morning, we rock thousands of feet below thesent an internal team of experts to surface and the groundwater aquifers.meet with key contractors to discuss A mixture of water and sand makes Read our freshwater position state-safety and environmental stewardship,” up more than 99 percent of the fluid, ment at Chevron.com/FreshWater.said Niemeyer. “During our first full and chemical components are lessweek, we hosted Chevron environ- than 1 percent. On FracFocus.org, a 21
    • 3,000 feet (914 m) of the proposedChevron Wells in Pennsylvania Are Designed to Safeguard drilling location and provide testGroundwater With up to Eight Layers of Protection results to the owner of each well and to the Pennsylvania Department of Environmental Protection. To improve Well Coal Private Municipal Fresh Site Seam Water Water Groundwater the industry’s transparency on water Well Well Aquifers quality monitoring, the Marcellus Shale Coalition is developing a public CEMENT 0 FT BARRIERS database in which companies will STEEL post results. 500 CASING1,000 Bill Jackson has the understanding that we hope others will gain as Casing for Avg. Maximum Groundwater we inform them about our safety Depth of Protection2,000 Groundwater measures. “Agriculture is our liveli- 350 FT hood, and we wouldn’t do anything to endanger that livelihood, whether Casing for Coal it’s the cows or the crops,” he said.3,000 Avg. Maximum Seam Isolation Depth of & Protection “Our cows are fed off a spring, which Coal Seam 700 FT was one of our early concerns. We’ve had it tested regularly, and nothing4,000 has changed.” Casing for Hole Stability & Well Avg. Depth of Control Chevron is also working to reduce truck5,000 Casing for Hole Stability & Well traffic. A typical well needs approxi- Control mately 1,200 truckloads of water for 2,700 FT drilling and completions activities,6,000 Production Casing Cemented for which will increase truck trips over Entire Length of Wellbore Pennsylvania’s rural roads. We are recycling water to reduce the number7,000 of trucks and emissions, and truck Top of Marcellus Shale > 7,000 Feet (1.3 Mile) From Groundwater drivers are undergoing safety training. We also work with local officials to8,000 determine the best routes. MARCELLUS LATERAL LENGTH: 2,000–5,000 FEET “When we are finished at a well site,1 FT = 0.3048 METER we leave the roads we used for access in the same condition as or bettervoluntary disclosure mechanism, we are typically no deeper than 350 feet than when we arrived,” Oliver said.disclose the chemical additives of the (107 m), while hydraulic fracturingfracturing fluids used in our wells. Our operations take place at approximately Many residents like Bryan Hajos hopewells are designed, drilled and installed 7,500 feet (2,286 m) to 8,500 feet Chevron can help reverse a decades-to protect the groundwater during (2,591 m) below the surface. We con- long trend in Pennsylvania. “In thehydraulic fracturing and over the life duct a series of tests over the life past 20 years, you’d go to college hereof the well, which can be 30 to 50 of the well to verify long-term integrity. and go somewhere else to find a job.years long. Now people like my friends and me, Our operations adhere to the com- who grew up here, have a chance to goIn Pennsylvania, we use a combination pany’s position statement on fresh to school here, stay in the communityof up to eight layers of steel casing water to safely and responsibly man- and work for a world-class organiza-and cement, which forms a continuous age fracturing fluids, wastewater and tion. Chevron is breathing new life intobarrier between the well and any produced water. We test all private the community.”groundwater. Groundwater aquifers wells used for drinking water within22
    • Executive Interview Wes Lohec Vice President for Health, Environment and SafetyWhy is natural gas What challenges How is Chevron address-from shale important does Chevron face? ing these challenges?to Chevron and Perhaps the biggest challenge is Chevron may be new to the Marcellusworld energy supplies? also our biggest opportunity — Shale, but we have been using and to improve community awareness advancing the foundation technologiesNatural gas from shale is dramatically and understanding about how for decades. From the day we acquiredchanging the gas supply landscape we operate. Atlas Energy, we have focused onin the United States — boosting applying our Operational Excellencereserves and providing a supply of The discussion of natural gas from Management System (OEMS) to oursafe, clean, affordable energy. shale has been clouded by complex, Marcellus operations. conflicting and sometimes inaccurateIt is the fastest-growing source of information about the technologies This starts with our robust well designnatural gas in the United States and we use. and drilling practices. We focus oncould become a major global energy water management, including workingsource. Natural gas from shale Every day we work to build trust with to recycle most of the water we usehas grown to about 25 percent of communities and other stakeholders, onsite. This reduces our freshwaterU.S. gas production in just a decade, knowing that trust can come only consumption as well as our needand according to the U.S. Energy from operating safely and responsibly for trucking and disposal. All of theseInformation Administration, it will be 24 hours a day, 365 days a year. practices aim to manage our environ-nearly 50 percent by 2035. mental footprint and the impact of our activities on the community.The development of this resourceis creating thousands of jobs, Stakeholder and community engage-improving energy security and ment is another core componentlowering GHG emissions from of our OEMS. We are learning from localelectricity production. communities about their concerns and sharing information about our opera-Our U.S. investments have positioned tions. In addition, we are committed tous to become a leading developer disclosing the chemical additives forof domestic shale gas. We also are all our new gas wells in the Marcellusexploring opportunities to develop Shale on the publicly availablenatural gas from shale in Canada and FracFocus (www.fracfocus.org) website.central Europe. 23
    • South Africa:From Education toEmploymentOur commitment to developing trade skills in thecommunities near our Cape Town, South Africa, refineryfosters social and economic opportunity.For Thembakazi Sidumo, a welder- entities and local community-based Sidumo, and many businesses thatin-training from the disadvantaged organizations. With unemployment support refinery operations.community of Du Noon in Cape estimated at 25 percent in South AfricaTown, South Africa, the new skills and 50 percent in Du Noon, these Our longevity in South Africa gives usshe is learning provide a way to programs provide value to residents an important stake in the community,forge a new life. throughout the region and are building as the nation’s journey of social, politi- blocks for a better life. cal and economic change unfolds.“Now that I am going to get my weld- Chevron was among the first support-ing certificate, I feel like I can walk In 2011, Chevron South Africa cel- ers of the Sullivan Principles in 1977,through any door and I can do the ebrated milestones that encourage which called for equal treatment ofjob,” said Sidumo, a contractor whose aspirations for the future. We marked employees regardless of race. Thatoptimism belies her residence amid the 100 years of operations in the coun- year, 40 percent of our more than 700estimated 100,000 living in Du Noon, try, the Caltex brand commemorated black workers were moved into refinerywhere illiteracy is common. “It is very 75 years and the Cape Town Refinery jobs traditionally held by whites. Today,challenging out there for a woman. celebrated 45 years. During the past more than 75 percent of our employeesBut women can do it,” she said with a century, we have become a leading at the refinery are black.smile, “as well as men can do it.” refiner and marketer of petroleum products in South Africa. We are one “We recognize that our businessThe skills training programs that she of the country’s top five petroleum success is linked to society’s progress,”and hundreds of other community brands, and nearly one-quarter of said Steven Parker, general managermembers are participating in provide Chevron’s Caltex service stations are in of Chevron’s Cape Town Refinery.training for employment opportunities the country. We have 1,000 employees “For South Africa to achieve high levelsat refineries and other industries in in South Africa and have approximately of economic growth and addressthe region. They are the result of a part- 440 employees at our Cape Town the challenges of poverty and inequal-nership between Chevron, government Refinery. We also hire contractors, like ity, it is vital that we help advance24
    • 100 98% 240 years of operations in of Chevron employees individuals participated South Africa was cele- in the country in Chevron-supported brated by Chevron in 2011 are South African training programs in 2011Msingathi Camagu, a mechanical fitter trainee, is learninghow to set a pump shaft in a center lathe for machining fromChevron machinist Francois Roux. 25
    • partnerships that share the vision of a Transforming Turnaroundsskilled and capable workforce.” Chevron is focused on being the In 2011, the partner of choice in the communityResponding to Change refinery achieved by actively participating in theThe country is undergoing a historic development of the country. Ourtransition to address the systematicexclusion of the majority of South 4.25 million Cape Town Refinery supports the community skills training programsAfricans from full participation in the work hours without for refinery “turnarounds” as aeconomy, particularly black South a Days Away From way to reverse inequities broughtAfricans, people with disabilities and on by the apartheid system.women. The South African govern- Work injuryment policy on these changes is called A turnaround is a planned, periodic“transformation.” shutdown of a refinery to perform maintenance, test and replace“It’s important for all people in the materials, and repair equipment.community that companies like Turnarounds occur periodically atChevron are doing the right thing the Cape Town Refinery. They takewhen it comes to transformation. months to plan and up to two monthsEveryone is aware that the whole to complete. They are necessary tonation is on a journey,” said Parker. maintain safety, improve efficiency and reliability, and sometimes expandThe South African government capacity. This type of maintenanceestablished the Broad-Based Black requires 1,000 to 2,000 qualifiedEconomic Empowerment (BBBEE) Act contractors, depending on the workin an attempt to improve economic needed. Understanding Chevron’sopportunities. Companies must provide safety culture and processes is essen-their audited BBBEE score card rating tial to the work and helps build uponwhen bidding for business, and the the refinery’s safety record. In 2011,rating directly influences the award- there were no Days Away From Working of contracts and trading licenses. injuries during 4.25 million hoursThe score card measures companies’ on the job.performance in key areas, includingskills training, employment equity, Contractors working on turnaroundsenterprise development, preferential undergo Chevron’s comprehensiveprocurement, socioeconomic develop- safety training, which includes safe-ment, ownership/shareholding and work practices, hazard assessment,management. equipment training and many other elements. Contractors participateThe company was recognized for its in our Fitness for Duty program,commitment to transformation in which confirms their ability to safelythe country. A 2011 independent BBBEE perform essential physical andaudit by Empowerdex found Chevron cognitive requirements of the jobSouth Africa to be one of the lead- Above, from top: Bongani Zuma and Thembakazi without risk to themselves, others or Sidumo are learning welding and other skillsing companies redressing historical the environment. And a safety “boot through a Chevron partnership with the govern-imbalances in the petroleum industry. ment and community organizations to provide camp” is held for contractors onChevron South Africa places a strong training in skills needed for the oil, gas and the day work begins.emphasis on capacity building through chemical industries.proactive recruitment, development, To meet the trainees, watch the video at Turnarounds are very visible tocoaching and internal promotion Chevron.com/CR2011/SouthAfrica. the local community. Many peopleof people from diverse backgrounds. approach Chevron asking for the opportunity to work, but very few have the basic skills necessary for26
    • such work. The World EconomicForum’s 2008–2009 GlobalCompetitiveness Report cited an“inadequately educated workforce”as the primary problematic factorfor doing business in South Africa.To address this issue, the refinery’sCommunity Advisory Panel — aChevron-initiated and supportedmonthly forum in which the companyand community leaders shareinformation, define needs and plansocial investment projects — helpeddevelop the skills training programsdesigned for refinery turnarounds.To implement the training programs,we collaborated with communityleaders to form a partnership betweenthe government, the Chevron refineryand local organizations.One program — a six-week appren-ticeship course conducted by EmproTraining Services Ltd., known asEmprotrain — was formed to assistin skills training for the oil, gas andchemical manufacturing industries.Students learn about safety principles Above: Marilyn Jafta and other participants in the six-week-long Basic Trade Skills Programand standards, rigging and piping, become qualified to apply for work on refinery maintenance shutdowns.permitting, hand and power tools, andother aspects of turnaround work.Grants from Chevron and from the are fundamental to the development to find employment at the refinerygovernment’s Chemical Industries and growth of the economy.” during shutdowns and further apply forEducation and Training Authority work in an engineering environment.(CHIETA) support this program. In Another partnership, with Northlink Chevron wants to play an active part in2011, 240 people participated. College, a nearby government-run alleviating the skills shortage in South college, provides a yearlong full- Africa,” said Dion Miller, Northlink“Chevron is very receptive to time course to train fully qualified program manager.addressing the poor work readiness artisans. This program includes threeof the many unemployed youth in months of training at the Chevron “Chevron is a reputable organizationthe country,” said Roger Adriaanse, refinery. Participants become skilled in the industry, so the people whoregional skills advisor at CHIETA. electricians, welders, steel fabricators participate in the skills development“They have opened their doors as a or mechanical fitters. In early 2012, initiatives become extremely market-host employer for many young people 23 graduates — including Sidumo, able and sought after once they exitleaving formal secondary and tertiary seven other women and 15 men — the programs,” said Adriaanse.education and entering the labor were hired by contractors to work on “Once gainfully employed, learnersmarket for the first time. The partner- a Chevron refinery turnaround. can provide for themselves withoutship has addressed the continuing having to rely on others. They are nowskills shortages in the artisanal, “The Northlink program provides able to support their families, andtechnical and professional fields that young persons with an opportunity to their earnings are plowed back into the learn skills that will enable them community in which they reside.” 27
    • California, United States:PartnershipsThat InspireOur investment in science, technology, engineeringand math (STEM) education is an investment in California’seconomic future. $100 528,000 6,600 million California students were reached by Chevron- supported STEM programs teachers benefited from Chevron-funded programs over the is the approximate amount Chevron invested over the past two years past two years in education in the U.S. from 2009 to 2011Sophomore students at Bakersfield High School in California cheer for their respective solar-powered,hydrogen-fuel-cell robotic cars in a test of the cars’ effectiveness and speed. Through Chevron’s partnershipwith Project Lead The Way, students apply academic engineering and technology concepts in real-world ways.28
    • 29
    • Partnering With Higher Education Chevron’s University addition to yearly support real-world potential Partnership Program reaching up to $500,000, of their academic work.” (UPP) works with colleges Chevron also provided and universities around a $2.5 million endowment In the past five years, the world to provide for a permanent energy Chevron has hired 500 scholarships, grants and efficiency chair to run full-time employees departmental support. the center. and another 500 interns UPP funds faculty posi- from California universities. tions, builds labs, and helps “Chevron has been a critical Eighty percent of those its partners attract and partner in helping UC Davis hires were in the fields develop talented students attract and retain more of science, technology, and teachers. students in STEM fields,” engineering and math — said Enrique Lavernia, the STEM subjects. For Our partnerships include dean of UC Davis College of us, supporting STEM an emphasis on engineer- Engineering. “They provide is a business imperative. ing programs at schools internship and job oppor- such as the University of tunities for our graduates. Below: UC Davis doctoral can- California, Davis (UC Davis), Their staff make frequent didate Tarit Nimmanwudipong where Jim Davis, presi- visits to campus, partici- studies the high-pressure dent of Chevron Energy pating in employment and reactor system in the cataly-Above, top: During Chevron Engineering Solutions Co., serves on the professional development sis research laboratory.Camp in Bakersfield, California, students board of the university’s opportunities, helping our The equipment is partiallyobserve the water rockets that were launched Energy Efficiency Center. In students recognize the funded by Chevron.to measure specific laws of physics, such astrajectory and velocity.Bottom: Co–presenting sponsors Chevron andthe University of California, San Francisco,supported more than a hundred events at thefirst weeklong, Bay Area–wide Science Festival.After Bricen launched the rudimen-tary rocket he had built at ChevronEngineering Camp, the Fruitvale JuniorHigh School student from KernCounty, California, thrust his armsskyward in triumph.“It went really good, better than I hadexpected,” he said with a smile. “At firstthe parachute wasn’t going to comeout, but right at the last second, itcame out and floated down really fast.”The rocket launch was the culmina-tion of a weeklong program involving Headquartered in California, Chevron We understand that the most impor-local teachers and Chevron volunteers is the state’s largest company and tant source of energy here is ourto generate excitement among young a critical driver of its economy. In people. Few factors are more criticalpeople about science, technology, California, we employ approximately to California’s — and Chevron’s —engineering and math — collectively 10,000 people full time. For every ability to compete in the global econ-referred to as STEM. It is one example job we create, nearly six more jobs omy than nurturing talent in STEM.of how our investments in California’s result, either directly related to the We recognize that education isfuture are producing results. energy business or in other services. a basic building block that contributes30
    • to economic development and sus-tained prosperity.“The most important challenge forCalifornia’s economy over the long Social Investmentterm is making sure we create ourown indigenous STEM human capitalinside the state,” said Ross DeVol, chief Across our operations, we work with oureconomist with the Milken Institute, a stakeholders, building long-term partnershipsCalifornia-based economic think tank.“That’s why programs like the ones that foster economic development andChevron funds are critically important.” lasting benefits to communities.The need to invest in STEM education The three main focus areas of our The Chevron-Liberia Economicis growing across the United States. social investments are education, Development Initiative is designedThe U.S. Bureau of Labor Statistics health and economic development. to deliver sustainable benefitsprojects that 15 of the 20 fastest- All three are key to improving the to women, children and youthgrowing occupations in 2014 will quality of life. The following are through education, enterpriserequire science or math knowledge. a few examples. development and health. ByCalifornia matches that statistic for year-end, we had helped fund 36the 50 fastest-growing occupations. • Chevron’s Energy for Learning projects in hospitals, vocationalAt the same time, the state ranks below program has reached the training centers, schools andthe national average in per-student educational lives of thousands communities.spending, has the highest number of of children and adults world-students per teacher, and placed 47th wide. We support education andout of 50 states in math scores among Chevron placed in the Top 10 training programs in China,eighth-grade students. in Fortune magazine’s March 2012 Malaysia, New Zealand, Pakistan, list of companies most admired the Philippines, Singapore,In the United States, Chevron invested for social responsibility, and first South Africa, Thailand, the Unitednearly $100 million in education among its peers in the petroleum Kingdom and the United States.over the past three years alone. In refining industry.California, more than half a million • In the area of health, Chevronstudents and 6,600 teachers benefited has pledged $20 million over fivefrom Chevron-funded STEM education Social Investment Spending years to a global plan to eliminate In millionsprograms in the past two years, mother-to-child transmission ofincluding professional development HIV, taking our commitment to $209 $197programs for nearly 1,000 teachers. the fight against HIV/AIDS and ourOur support also helped nonprofits partnership with the Global Fund $156introduce new STEM curriculum to Fight AIDS, Tuberculosis and $144and hundreds of new STEM activities Malaria to a new level. We support $119and programs into California’s public awareness, prevention, testing andschools, and provided some 13,000 new treatment programs in Angola, $91STEM resources for students, including Indonesia, Nigeria, the Philippines,scholarships, science and robotics South Africa and Thailand.kits, computers, and lab equipment. • In 2011, we initiated a five-year“We’re working to cultivate the social investment programnext generation of mathematicians, to support the people of Liberia. YEAR 06 07 08 09 10 11scientists and innovators by formingpartnerships, harnessing the power ofhuman capital and implementing Visit Chevron.com/SocialInvestment.new approaches,” said Linda Padon, 31
    • general manager of Corporate Public Inspiring Students ThroughPolicy for Chevron. Hands-on Experience In California alone, In Richmond, California, our CaliforniaSupporting NonprofitOrganizationsIn 2009, we created the California 1.1 million Partnership has brought new hands- on learning opportunities to students. Richmond High School used ChevronPartnership, an ongoing initiative STEM-related funding to introduce Project Lead Theto invest in economic development jobs will need to be Way curriculum to their Engineeringand STEM education, with a focus on Academy. The city of Richmond, theunderserved communities where we filled by 2018 West Contra Costa Unified Schoolhave operations across our home state. District and Chevron also collaboratedNonprofit organizations and multiple to fund and install a computer lab atpublic school districts across California the school to support Project Leadbenefit. Organizations that are selected The Way activities.to participate have demonstratedinnovative approaches with proven Bruce Harter, the West Contra Costatrack records for delivering economic superintendent of schools, noted,and educational benefits to those “This computer lab is a great exam-in need. ple of how the public and private sectors can work and cooperate withOne of the organizations we support each other to have a huge impactwithin California and other U.S. states on people’s lives. It will feed a realis Project Lead The Way, a national hunger among many of our studentsprovider of rigorous STEM education for advanced classes and training.”for middle school and high schoolstudents. In California, the Project We also invest in Richmond HighLead The Way program has grown by School’s after-school robotics program.about 35 percent in each of the past Students in the program participatethree years and now serves more than Above: To interest students in engineering, in national competitions. At the 201130,000 students in 276 schools and Chevron facilities engineer Brande Hubbard ex- Bay Area Science Festival, the students plains how the skills the students learn in design115 school districts. showcased Chompy the Robot to more and construction relate to her job at Chevron. Watch students build robotic cars at than 15,000 visitors at the Chevron“Ninety percent of students with Chevron.com/CR2011/California. Exploration Village.experience in Project Lead The Waywho enter a four-year engineering Beyond Chevron’s financial investmentsprogram graduate, whereas that At the heart of our efforts in California in education, the company matchesrate is 50 percent for those who do is a focus on multisector partnerships to employees’ contributions to nonprofits,not,” said Project Lead The Way’s improve STEM education. Chevron pro- and employees volunteer to helpBruce Westermo. “Our partnership vides funding for the Young Innovators students through Chevron Humankind,with Chevron works to increase Club in Kern County. The after-school our U.S. employee and retiree givingthe number and quality of engineers program is a collaboration between and volunteer program.and technologists.” Taft College and Lincoln Junior High School that reinforces STEM concepts Chevron automation engineerChevron supports Project Lead The students learn in Project Lead The Brandon Carey volunteers on STEMWay in regions near company facilities Way classes. Students use computer programs in Bakersfield. “I’m excitedin Bakersfield, El Segundo, Sacra- software for 3-D modeling; build robots to get engaged with the youngermento, Richmond and other parts of and airplanes; and learn about energy, students and get those individuals toCalifornia. We invested in an expansion the environment and physics. Teachers see how fun it is to be involved inof Project Lead The Way curriculum at Lincoln have access to extra class- this type of work. Early engagementfrom one school to eight schools near room resources thanks to Chevron’s helps prepare them to be of greatour Bakersfield facility in Kern County, statewide partnership with the online value to the community.”benefiting nearly 700 students. nonprofit DonorsChoose.org.32
    • Executive Interview Joe Laymon Vice President for Human Resources, Medical and SecurityWhat human What will help meet How is Chevron address-resource challenges this challenge? ing this challenge?does Chevron face? Recent studies highlight that We believe three things are critical to the success of STEM education will advance STEM education.One of our challenges is getting determine whether a country willpeople with the right skills in the right have the needed technical capacity First, we must work together throughplace at the right time. to meet challenges in areas such collaborative partnerships, such as as energy, health, environmental pro- our partnership with Project Lead TheThe people who design and run tection and national security. Way, which encourages the develop-the engineering marvels that bring us ment of problem-solving skills, criticalenergy have one thing in common — A healthy STEM education pipeline thinking, and creative reasoningthey’re strong in science, technology, spanning preschool through higher through a rigorous STEM curriculumengineering and math (STEM) skills. education is critical to producing in middle and high schools.So it’s a business imperative that a workforce that can compete in thewe’re dedicated to creating a pipeline global marketplace. It will train the Second, we believe in the power offor hiring and nurturing people with future scientists, engineers, mathe- human capital. In our partnershipsuch talent. maticians and innovators needed with Techbridge, a U.S. nonprofit that to develop ideas and products, and encourages young women to studyOver the past five years, we’ve hired help improve economic standing. science and engineering, Chevronan average of 5,000 people a year, employees serve as role models.most of whom have been hired outside These STEM workers will continue We also help provide after-school andthe United States. Once they’re on to be a vital part of all countries’ summer science curriculum.board, we continue developing their economies.experience and technical skills. Third, we believe in coordinated, inte- grated approaches. Chevron worksBut our need for human capital requires across sectors — with nonprofits,us to look beyond our company and governmental organizations, univer-to our communities. Wherever we sities and regional forums — to increaseoperate, we actively focus on the kind STEM education opportunitiesof education — the STEM subjects — for young people. We recognize thatthat most directly leads to the highly students, parents, businesses andskilled workers who help our business government all have roles to play.grow and prosper. 33
    • Nigeria:TransformativeInvestmentsMultistakeholder partnerships are at the heart of our innovative,socioeconomic investment models in the Niger Delta.Nigeria’s complex socioeconomic more than 200 projects in 425 have provided loans to 2,000 individu-challenges are as diverse as its coastal communities, villages and chiefdoms, als in the Niger Delta region.plains, tropical forests and rugged and have benefited some 850,000highlands. Chevron has been operat- people. Partnering with local non- Along Nigeria’s southwestern coast,ing in Africa’s most populous country governmental organizations has our Escravos Gas-to-Liquids (EGTL)for 50 years. During this time, we have been essential in providing technical plant under construction is designedforged successful partnerships and assistance and helping resolve conflicts to produce cleaner-burning dieselgiven support to address the problems in the communities. Through these fuel, liquefied petroleum gas and naph-of social instability, poverty and disease participatory partnerships, Chevron tha from natural gas. With a high ratethat have gripped the Niger Delta has sponsored workshops on financial of unemployment in the Delta, theregion, where we conduct the bulk of management, government budgeting, EGTL project provides an opportunityour operations in the country. lobbying processes and commu- for economic progress and job growth. nity relations to improve the RDCs’One of our longstanding social invest- effectiveness. “We approached our GMOU communi-ments in the Niger Delta is our Global ties to seek capable local suppliersMemorandum of Understanding Raphael Nomiye, a leader of the Ilaje and provide training,” said Mick Kraly,(GMOU) program with local communi- RDC, in a coastal area where many EGTL project manager. “I’ve seen hugeties. The GMOUs were initiated in energy companies operate, said the changes in confidence and capabilities in2005 to give communities greater GMOU process helped community lead- these companies, some of which wentroles in the management of their own ers complete 30 projects in 2011, which from a few employees to hundreds.”development through the collective was “in line with our cardinal objectivesetting of priorities, identification of to stimulate sustainable develop- To date, more than 10,000 Nigerians,employment and contracting opportu- ment in the Ilaje land.” He pointed to mostly from the Delta, have jobs atnities, and management of conflict. microcredit lending as key for local EGTL and were trained in international business opportunities. “Many of those safety standards. More than 1,500Since their inception, the GMOUs who could not meet the requirements purchase orders have been placed withwe signed with eight Regional for loans from commercial banks have Nigerian vendors, and 500 contractDevelopment Committees (RDCs) benefited to improve their business or companies are involved in EGTL. One ofin the Niger Delta have delivered start up new ones,” he said. The RDCs those companies is Biloritz Nigeria Ltd.,34
    • 90% 850,000 $50 of Chevron’s workforce in Nigeria are nationals people have benefited from Global Memoran- dums of Understanding million is the amount Chevron between Chevron, pledged to the Niger communities and state Delta Partnership governments Initiative over five yearsPreye Naiboken is a trader from Bayelsa State in the Niger Delta. She buys fresh fish fromlocal fishermen, dries the fish and sells them alongside the road. 35
    • Two foundations were created to support this goal. The NDPI Foundation was established in the United States to coordinate development-project funding, while the Foundation for Partnership Initiatives in the Niger Delta (PIND) is in Nigeria and actively engages in the design, development and monitoring of the programs funded by the NDPI and other donor partners. According to Bill Grant, an economic development specialist with Devel- opment Alternatives Inc., the NDPI’sAbove: Youths in Edo State operate a fish farm that hatches and grows catfish. Family members efforts recognize that there cannotand friends provided initial startup capital, and PIND provided a water well and storage tank. Now the be meaningful change in the Nigeryouths support themselves through their business. Delta without the creation of a more Watch a video about the NDPI at Chevron.com/CR2011/Nigeria. enabling and peaceful environment for economic growth.Learning From the Angola “These socioeconomic challenges are complex,” said Grant, “andPartnership Initiative require an understanding of how all the elements fit together. NDPIThe NDPI/PIND model has The Angola Partnership For example, we helped fund uses market-development thinkingroots of success in Angola. Initiative focused on the establishment of Angola’s as its underlying strategy to driveTo help rebuild Angola after development programs first microfinance bank and economic growth. This is all supportedyears of civil war, Chevron’s that sought stability subsidized improvements by analyzing what is — and is not —pioneering work on the and growth in the areas in commercial agriculture,Angola Partnership Initiative most affected by conflict, such as a vegetable coop- working and building advocacy to drivebegan in 2002 in collabora- rather than on Chevron’s erative that grew into a the changes. By building a constitu-tion with international business interests and sustainable enterprise that ency of local partners interested inaid agencies, such as USAID operational areas. Together needed no subsidies. the same objectives, the approachand the United Nations with our partners, we gen- is pragmatic and generates ownershipDevelopment Programme. erated innovative results. and a common understanding of the challenges and the solutions.”a piping and engineering company The NDPI involves a multisector com- The NDPI quickly generated interestthat went from 46 employees in 2009 mitment with local and international among the international donor com-to 224 today. partners. It broadens our involvement munity. In February 2011, the U.S. because it addresses regional eco- Agency for International Development“It takes a lot of work to build these nomic development outside our areas (USAID) committed $25 million to jointlyrelationships,” said Kraly, “but once of operation. support a number of NDPI projects.you get there, it’s very special. TheGMOU process builds hope, peace and “The approach is unique in that it not “The United States government,a sustainable way of doing things.” only addresses social and economic through USAID, is committed to work- problems in the Niger Delta but also ing with the private sector in Nigeria toNDPI: Moving Beyond Our Operations analyzes them to understand their establish innovative and dynamic part-Building on our foundation of participa- root causes and identify sustainable nerships to promote socioeconomictory partnerships in Nigeria, in 2010 we solutions,” said Chevron’s Dennis development in the Niger Delta region,launched the Niger Delta Partnership Flemming, who has worked for 25 foster peace and stability, and improveInitiative (NDPI) and announced our years on socioeconomic development the quality of life for residents,” saidfive-year, $50 million endowment. programs in developing countries. Ray Kirkland, USAID’s former mission36
    • Diversity The richness of our cultural diversity enhances our work environment. Chevron operates in many countries, with different cultures and people. Having a workforce that is rich in diversity is essential. We have made considerable progress in nationalizing our overall workforce. More than 90 percent of our workforce comprises nationals working in their home countries. We also track our progress in increasing the diversity of our senior-level leaders. In 2011, women andAbove: Silva Ikpire from Rivers State earns a living by weaving palm fronds into products for fishing, non-Caucasian men accounted forwhich she sells to local fishermen. 27.5 percent of senior executives. To support our values of diversitydirector for Nigeria, during the signing The NDPI intends to expand its and inclusion, approximatelyof the agreement between the NDPI network of organizations, businesses 25,000 Chevron employees areand USAID. and consultants promoting eco- members of employee networks — nomic development in the Niger defined by gender, race, nationalIn 2011, the NDPI, along with the Delta. PIND has awarded more than origin, age, disability or sexualUnited Kingdom’s Department $350,000 in small grants to local civil- orientation — that foster communi-for International Development and society organizations and partnered cation among employees andthe German International Cooperation with GIZ to train 42 individuals from cultivate links with communities.Agency (GIZ), analyzed potential Edo and Delta States as trainers in We strive to expand relationshipshigh-growth commodities in the enterprise formation. with minority and women suppliers.Delta, resulting in the identification In 2011, we spent $833.4 millionof cassava, palm oil and farm-raised Professor Obafemi Ajibola is a member with women- and minority-ownedcatfish as sectors having strong of the PIND board of trustees and businesses in the United States.development potential. Analysis of CEO of the New Nigeria Foundation, We spent more than $2.1 billion onthe commodity value chains identified a nonprofit organization that encour- goods and services from U.S.-opportunities to address constraints ages sustainable development. based small businesses.on market development within those He believes the NDPI approach cansectors. Initial pilot interventions succeed “because it identifies andare focusing on fish-farming associa- deals with the systemic constraintstions and cooperatives operating from faced by many economically active Please visit Chevron.com/Diversity.a cluster of more than 3,600 ponds poor persons, thus encouragingin Ekpan, Delta State. creative market solutions.” 37
    • Progress UpdateIn 2011, we reached milestones inmany of our operations andcommunities. Following are a fewexamples from regions coveredin our previous reports. Indonesia Politeknik Aceh graduated its first 140 students in September 2011. The polytechnic university was built by Chevron and its partners as part of the Chevron Aceh Recovery Initiative that followed the 2004 tsunami. Currently, 540 students are learning about mechatronics, industrial elec- tronics engineering, accounting and other subjects that support long-term economic growth in Aceh. In line with our commitment to support the education of Indonesia’s youth, we designed the Chevron Earthquake Recovery Initiative in 2009 to rebuild educational facilities destroyed by the earthquakes. With $1.8 million from employee donations and company funds, Chevron worked with the cen- tral government, local governments, nongovernmental organizations, civil society and school committees toIn September 2011, students of the first graduating class at Politeknik Aceh celebrated. restore and rebuild two schools in WestThe polytechnic university awards degrees in applied engineering and technology fields. Sumatra and another two schools inFrom left are graduates Cut Fitri Saumi, Al Mukhyar and Uci Zulfira Rahayu. Sukabumi and Garut regencies, where Chevron has its Darajat and Salak geo- thermal operations. The buildings were designed to resist earthquakes, and the Padang Vocational High School can function as shelter for 2,200 people in case of a tsunami.38
    • Kazakhstan As Kazakhstan celebrated its 20th anniversary of independence in 2011, Chevron continued to support new initiatives in the country. In addition to helping develop innovative projects in vocational training and earthquake preparedness for Almaty citizens,Australia Chevron signed a partnership agree-We’re setting a new benchmark in ment with Nazarbayev University inthe management of biosecurity risks the country’s capital city, Astana, tothrough our quarantine management provide funds to the Center for Energysystem on Barrow Island, home of the Research for studies in energy, theGorgon liquefied natural gas project. environment and sustainable develop-Effective quarantine management U.S. Gulf of Mexico ment, and to provide the Socialis at the core of our commitment to The drilling activity that had begun Development Fund to support youngsafeguarding Barrow Island’s unique in March 2010 at the Moccasin researchers. Since its operationsspecies. The Western Australian prospect in the U.S. Gulf of Mexico began in 1993, the Chevron-led joint-Environmental Protection Authority was stopped that June, when the U.S. venture Tengizchevroil has investedhas acknowledged that our system is government imposed a moratorium $700 million to fund social programs inlikely to be the world’s best practice. on deepwater drilling in the Gulf. the Atyrau region for its workforceThe system was developed with In March 2011, we were issued a and the community.help from independent experts and deepwater permit by the U.S. Bureauapplies innovative engineering of Ocean Energy Management, Reg-solutions to ecological challenges. ulation and Enforcement to resume Angola drilling the Moccasin exploration In 2011, we partnered with the BaylorWe are also playing an important role well. In September, we announced a College of Medicine, Texas Children’sin the large-scale demonstration of new oil discovery at the prospect. Hospital and the Republic of Angola ongreenhouse gas storage technology two health initiatives. Chevron hasthrough our Gorgon CO2-injection Since the BP Macondo well incident, committed $4 million over four yearsproject, an investment of approxi- we have reviewed our processes, to support the Angola Sickle Cellmately $2.1 billion. We plan to separate procedures and well-control contin- Initiative, the country’s first compre-CO2, which occurs naturally in the gency plans at our drilling operations hensive sickle cell treatment program.Gorgon produced gas, and inject worldwide to confirm our ability to Of the more than 6,000 babies whoit into a deep containment reservoir operate safely and respond to any were screened in 2011, 85 were identi-1.6 miles (2.6 km) beneath Barrow unforeseen incidents. Chevron is fied as having the disease and willIsland. The project has received sup- one of the sponsor companies of the receive treatment before they manifestport from many sectors and groups, Marine Well Containment Co. (MWCC), symptoms. We also announcedincluding recognition from the interna- a nonprofit, independent organiza- a $6 million, five-year agreement totional Carbon Sequestration Leader- tion committed to improving response expand Texas Children’s Hospital’sship Forum. The Australian government capabilities for containing deepwater Global Health Corps program, whichhas also committed approximately well-control incidents in the U.S. Gulf of provides lifesaving pediatric health$62.7 million to the Gorgon Project as Mexico. MWCC developed an interim oil- care and treatment to medicallypart of the Low Emissions Technology spill containment system that became underserved populations in AngolaDemonstration Fund. available for use in February 2011. and Liberia. 39
    • Additional Information and DataAt Chevron, how we work is as importantas what we do. Our success is drivenby our people and their commitment todeliver reliable and affordable energythe right way — by operating responsibly,applying innovative technologies andperforming with excellence.Global Geographic Breakdown of Employeesat Year-End 2011At year-end 2011, Chevron’s worldwide employee staffing was 57,376(excluding 3,813 service station employees). This represents a decreaseof 1.5 percent over the previous year. U.S. workers numbered 26,525,and approximately 11.2 percent were represented by unions. North America 46.5% Asia-Pacific 29.0% Africa 14.0% Europe/Middle East 6.4% South America 4.1%40
    • 33% 57,376 100% is the amount Chevron employees worked for rating was achieved has reduced flaring Chevron at year-end 2011 by Chevron on the and venting in opera- Human Rights Campaign tions since 2003 Corporate Equality Index for the seventh consecutive yearThe generators behind operator Rashed Al-Yami create steam at the Wafra large-scale steam-flood project for the Saudi Arabian Chevron-Kuwait Gulf Oil Co. The joint operations in the onshorePartitioned Zone lie between Saudi Arabia and Kuwait. 41
    • Performance DataGHG Emissions by Source 1 GHG Emissions by Sector 1 Total GHG Emissions by Type 1, 2Millions of metric tons of CO2 equivalent Millions of metric tons of CO2 equivalent Millions of metric tons of CO2 equivalent Combustion Flaring and venting Other Upstream Downstream Other Grid Direct Indirect Credits Net2011 39.6 2011 36.1 2011 61.6 —1.8 0.0 59.8 12.9 22.9 2010 63.1 —2.9 0.0 60.2 7.3 0.8 2009 60.3 —2.4 —0.9 57.02010 2010 2008 62.7 —2.4 —1.0 59.2 41.1 35.1 13.5 24.2 2007 63.7 —2.9 —0.5 60.3 5.7 0.92009 40.3 2009 31.8 12.2 24.0 Energy Performance 3 4.5 1.1 Percentage improvement since 1992 baseline2008 41.3 2008 34.4 13.2 23.5 2011 34 4.8 1.4 2010 33 2009 302007 41.0 2007 35.9 2008 28 14.6 22.8 4.7 2007 27 1.5Air Emissions 4, 5 Air Emissions by Sector 4, 5 Average Oil Concentration inMetric tons Metric tons Discharges to Water 6 Upstream Downstream Other Parts per millionVOCs Upstream Downstream Other Upstream Manufacturing and Chemicals2011 260,281 VOCs 2011 230,107 30,148 262010 262,307 2010 229,113 33,174 21 2011 9.472009 274,146 2009 234,243 39,871 32 1.872008 221,734 2008 201,209 18,648 1,878 2010 13.062007 260,640 2007 240,716 18,788 1,136 2.11 2009 11.28SOX 3.872011 155,485 SO X 2011 141,601 13,849 35 2008 12.942010 154,949 2010 137,005 17,902 42 3.732009 151,861 2009 135,393 16,339 130 2007 15.642008 125,036 2008 97,731 18,496 8,810 3.702007 91,644 2007 63,223 20,451 7,970NOX2011 132,106 NOX 2011 122,781 8,373 9522010 134,761 2010 121,627 12,155 9792009 121,914 2009 109,320 12,453 1422008 134,785 2008 95,717 12,282 26,7852007 144,676 2007 121,378 14,041 9,257Petroleum Spills 7, 8 Petroleum Spills 8 Fines and Settlements 9Volume in barrels Number of spills Number of environmental, health and safety fines and settlements Spills to land Secondary containment Spills to water Volume recovered2011 12,401 2011 274 YEAR 07 08 09 10 11 8,119 2010 258 Total number 684 564 460 524 1852010 12,114 2009 331 10,388 2008 3242009 9,342 2007 403 7,5092008 17,471 14,3962007 9,227 6,838 Footnotes are on page 45.42
    • Greenhouse Gas Emissions are due to changes in sour gas production from a maturing Saudi Arabia/Partitioned Zone (SA/PZ) reser-At Chevron, we are taking significant steps to address voir, and improved estimates of gas production andgreenhouse gases (GHGs). The use of fossil fuels to meet SA/PZ flare gas.the world’s energy needs contributes to an increasein GHGs — mainly carbon dioxide (CO2) and methane — 2011 nitrogen oxides (NOX) emissions are lower than inin Earth’s atmosphere. We made a long-term commitment 2010 due to the divestment of the Pembroke Refinery andto improve energy efficiency in our day-to-day activities, a revised Hawaii Refinery estimate from source testing.which will help us manage our carbon emissions. Weinventory our emissions and use innovative technologies Oil Discharges to Waterto continually improve the efficiency of energy usein our operations. We also assess GHG emissions in our In 2011, Chevron discharged 1,574 metric tons of oil tocapital projects. surface water, 31 percent less than in 2010. The chart on page 42 shows reduced oil concentration in waterFor the sixth time since 2004, the Carbon Disclosure discharges for Upstream and Gas and for ManufacturingProject has featured us in their Leadership Index as and Chemicals. The Upstream and Gas average oilan industry leader in disclosing GHG emissions manage- concentration in discharges to water decreased in 2011ment information. A score of 86 reflects our good, mainly due to improvements in Sumatra. The Manufac-transparent data management and understanding of turing and Chemicals average oil concentration inGHG management issues. discharges to water decreased due to the divestmentIn 2011, emissions were 59.8 million metric tons of CO2 of the Pembroke Refinery, improved El Segundo Refineryequivalent, meeting our goal of 60.0 million tons. effluent-treatment system performance, and seasonal rainfall variation.Our emissions goal for 2012 is 60.5 million metric tonsof CO2 equivalent. Normal production levels and emis- Hazardous Wastesions are expected to resume in areas where disruptionsand maintenance occurred in 2011, and emissions are The 2011 hazardous waste generated was 1.01 millionexpected from new facilities and facility expansions metric tons, a decrease from the 1.10 million metriccoming online in 2012. We will seek emissions reductions tons reported for 2010. This reduction is attributed tothrough energy efficiency improvements and reduced Manufacturing, where generation decreased due toflaring and venting. decreased disposal of contaminated refinery soil, report- ing changes to align with regulatory requirements,Combustion of our products resulted in emissions of and the divestment of the Pembroke Refinery. Theapproximately 396 million metric tons of CO2 in 2011, approxi- 2011 hazardous waste disposed of was 520,733 metricmately 5 percent less than the 418 million metric tons tons. The 2011 amount that was recycled, reused andemitted in 2010. More details on flaring reduction and prod- recovered was 509,097 metric tons.ucts combustion are provided in footnote 1 on page 45. Petroleum SpillsGreenhouse Gas Emissions Intensity We continually review and improve systems to preventOur 2011 GHG emissions intensity was 34.9 metric tons of spills. In 2011, 274 petroleum spills released 12,401 barrels,CO2 equivalent per 1,000 barrels of Upstream operations a slight increase compared with 12,114 barrels releasednet oil-equivalent production, up from 32.9 metric tons by 258 spills in 2010. Approximately 18 percent, orin 2010. Our Downstream intensity was 36.8 metric tons of 2,236 barrels, of the total volume was spilled to secondaryCO2 equivalent per 1,000 barrels crude oil refinery feed, containment in 2011. Compared with 2005, there wereup from 35.4 in 2010. 40 percent fewer spills, and spill volume was reduced by 70 percent.Air Emissions2011 volatile organic compound (VOC) air emissions are Fines and Settlements9estimated at similar levels to previous years. 2011 environmental fines and settlements were $89.4 mil-2011 sulfur oxides (SOX) emissions are at similar levels to lion. This represents 3.32 percent of Chevron’s total 20112010 and 2009. Changes in SOX emissions over the years environmental expenditures. 43
    • Performance DataTotal Recordable Incident Rate 10 Lost-Time Incident Frequency 10 Days Away From Work Rate 10Incidents per 200,000 work hours Days Away From Work incidents and Incidents per 200,000 work hours fatalities per million work hoursYEAR 07 08 09 10 11 YEAR 07 08 09 10 11 YEAR 07 08 09 10 11Workforce 0.35 0.36 0.27 0.24 0.24 Workforce 0.37 0.27 0.25 0.18 0.20 Workforce 0.07 0.05 0.05 0.03 0.04Benchmark 0.56 0.55 0.40 0.41 N/A Benchmark 0.65 0.64 0.44 0.45 N/A Benchmark 0.13 0.12 0.09 0.09 N/AEmployees 0.40 0.31 0.32 0.22 0.22 Employees 0.48 0.33 0.33 0.17 0.29 Employees 0.09 0.07 0.07 0.03 0.06Benchmark 0.49 0.47 0.42 0.33 N/A Benchmark 0.57 0.57 0.52 0.44 N/A Benchmark 0.11 0.11 0.10 0.08 N/AContractors 0.34 0.37 0.26 0.24 0.24 Contractors 0.33 0.25 0.23 0.19 0.12 Contractors 0.06 0.05 0.04 0.03 0.03Benchmark 0.61 0.59 0.39 0.45 N/A Benchmark 0.71 0.67 0.39 0.46 N/A Benchmark 0.14 0.13 0.07 0.09 N/AWork-Related Fatalities Work-Related Fatal Accident Rate Work-Related Fatal Incident RateNumber of fatalities Work-related employee or contractor Work-related incidents that led to at fatalities per 100 million work hours least one employee or contractor fatality per 100 million work hoursYEAR 07 08 09 10 11 YEAR 07 08 09 10 11 YEAR 07 08 09 10 11Workforce 17 5 9 5 5 Workforce 3.50 1.01 1.85 1.03 0.99 Workforce 1.85 1.01 1.85 0.83 0.39Employees 3 0 0 0 1 Employees 2.27 0.00 0.00 0.00 0.79 Employees 1.51 0.00 0.00 0.00 0.79Contractors 14 5 9 5 4 Contractors 3.96 1.40 2.54 1.40 1.05 Contractors 1.98 1.40 2.54 1.12 0.26Global Diversity Motor Vehicle Safety 11 Company vehicle incidents per million miles drivenYEAR 10 11Women in total workforce 23.1% 23.4%Women represented at midlevel and above 11.8% 12.4% 2011 0.03Women and non-Caucasian men represented at senior executive levels 27.0% 27.5% 2010 0.01 2009 0.06 2008 0.06 2007 0.10U.S. Equal Employment Opportunity Commission StatisticsYEAR 08 09 10 11Minorities among total employees 35.3% 34.9% 35.4% 35.9%Women among total employees 29.2% 28.9% 29.3% 29.3%Minorities among executives and senior managers 11.0% 11.2% 11.1% 11.6%Minorities among first- and midlevel managers 26.9% 27.5% 27.4% 27.7%Women among executives and senior managers 15.0% 14.4% 15.3% 16.3%Women among first- and midlevel managers 24.7% 27.4% 26.9% 27.4%Minorities among professionals 30.6% 31.4% 31.7% 31.8%Women among professionals 32.4% 32.4% 32.8% 32.2% Footnotes are on page 45.44
    • Process Safety 12 In 2011, there were 92 loss-of-primary-containment incidents of significance (ANSI/API Recommended Practice 754 Tier 1) across the company, compared with 95 incidents in 2010. Of the 92 incidents, 63 occurred in Upstream and 29 in Downstream, which includes Manufacturing and Chemicals. Notes to pages 42 and 431 Chevron continues to use the upgraded GHG The 2011 flaring and venting emissions are 5 2009 and 2010 VOC air emissions are restated and energy reporting system (CGERS), improved based on flare gas volume of 898 million cubic in this report. Kazakhstan VOCs are revised by adding reporting mechanisms for electronic feet per day plus venting of gas in CO2 equiva- to include additional compounds that are not reporting to the U.S. Environmental Protection lent, which is 6 percent higher than in 2010. required to be included by regulations. Agency. The increased flaring in 2011 is due to a disrup- “Other” includes Chevron Mining Inc. tion of operations in Upstream Angola. The 2010 emissions were restated to 60.2 metric Due to rounding, individual numbers may not tons of CO2 equivalent, as several business units Chevron’s GHG emissions data are reported sum to the total numbers. improved their data collection and accuracy, on an equity basis for all businesses in which especially in the United States, where GHG emis- Chevron has an interest, except as noted below. 6 Numbers shown on chart for Upstream are for sions reporting became mandatory. The following entities are not currently included Upstream and Gas operations. in the Chevron corporate GHG inventory: Increased production, new operations and 7 Secondary containment volume — which is not Chevron Phillips Chemical Co. LLC, the Caspian increased flaring due to a disruption of released to the environment — is included in Pipeline Consortium, the Chad-Cameroon operations in Angola drove some of the emis- the total volume listed at the end of each bar. pipeline joint venture, Caltex Australia Ltd.’s sions increases. The Pascagoula Refinery Lytton and Kurnell refineries, and other refiner- 8 Spills to land, water and secondary containment and the Yeosu Refinery increased production, ies in which Chevron has an equity interest of that are greater than or equal to one barrel which increased their emissions. Production 16 percent or less. These are entities over which are included. changes in Canadian Upstream interests Chevron does not have full operational control also drove emissions increases. At the same or which do not generally follow Chevron’s 9 Environmental expenditures were $2.7 billion time, the increased emissions were more than corporate GHG inventory protocol or a compati- ($1.0 billion capital, $1.7 billion noncapital). Health offset by decreases in emissions due to the ble protocol. At this time, GS Caltex Corp.’s and safety fines and settlements were 0.4 percent divestment of the Pembroke Refinery and Yeosu Refinery’s emissions data are submitted of total fines and settlements ($0.32 million). the North River Mine (U.S.), improvements in separately from the CGERS system. Chevron Shipping fleet efficiency, and decreased production at the El Segundo Refinery. Due to rounding, individual numbers may not sum to the total numbers. Notes to pages 44 and 45 Chevron calculates product emissions based on total 2011 Upstream liquids, gas and coal produc- 2 Direct emissions come from sources within a 10 American Petroleum Institute’s Benchmarking tion. The emissions factors used are from the facility. Indirect emissions come from electricity Survey of Occupational Injuries, Illnesses, American Petroleum Institute’s Compendium of and steam that Chevron imports, less the and Fatalities in the Petroleum Industry data are Greenhouse Gas Emissions Methodologies for emissions credits from electricity and steam used as industry benchmarks. Occupational the Oil and Natural Gas Industry (2004, 2009). that Chevron exports. Grid credits account safety data include both injuries and illnesses. Based on the International Energy Agency’s for electricity that Chevron exports and that is 2011 benchmark data were not available at (IEA’s) Key World Energy Statistics (2011), these produced more efficiently than electricity the time of publication. emissions represent 1.3 percent of global CO2 from the regional or national grid. Per industry emissions from fossil fuels. This amount is lower best practices, beginning in 2010, Chevron 11 Data include catastrophic and major incidents only. than the 1.7 percent of global CO2 emissions no longer accounts for grid credits in its power 12 Loss-of-containment incidents are unplanned or estimated in 2002. generation emissions. uncontrolled releases resulting in consequences The IEA’s Key World Energy Statistics (2011) equivalent to those specified by the American 3 Chevron uses an energy index to measure indicates 28,999 million metric tons of CO2 from National Standards Institute/American Petroleum energy efficiency improvements across fossil fuel emissions. Chevron divides its prod- Institute (ANSI/API) Recommended Practice 754. its global operations. As of 2011, that index has ucts combustion number by 28,999 million to shown a 34 percent improvement since 1992. obtain its percentage of 1.3 percent. The Chevron Energy Index is a measure of Data from the former Atlas Energy, Inc., are Chevron participates in the Global Gas Flaring the energy intensity of its operations based included in Chevron’s employment, Total Reduction Partnership. Since 2003, we reduced on the estimated improvement of energy Recordable Incident Rate, Lost-Time Incident flaring and venting by 33 percent (operated technologies and operational performance. Frequency, Days Away From Work Rate and basis). In Nigeria and Angola (85 percent of The total energy consumption of its operated Fatality charts. Upstream flaring), we plan to reduce flaring and assets in 2011 was 760 million gigajoules venting by 50 percent by 2014. (or 720 trillion Btu), at a cost of $7.0 billion. 4 Volatile organic compounds (VOCs) are derived primarily from fugitive emissions from equip- ment (such as valves, pumps and compressors), flaring, venting, and flashing gas. Nitrogen oxides (NOX) and sulfur oxides (SOX) are com- bustion byproducts. 45
    • GRI and API/IPIECA IndexThis index refers to: • 2010 Sustainability Reporting Guidelines of the Global Reporting Initiative (GRI), Version 3.1 • American Petroleum Institute/International Petroleum Industry Environmental Conservation Association (API/IPIECA) Oil and Gas Industry Guidance on Voluntary Sustainability Reporting, 2nd edition, 2010 For more information on GRI and API/IPIECA reporting guidelines, please visit globalreporting.org and ipieca.org. GRI API/IPIECA Where ReportedProfile DisclosuresStrategy and Analysis 1.1 1.2 2–3Organizational Profile 2.1 2.22 2.32 2.42 2.52 2.62 2.72 2.82 2.92 2.10Report Parameters Report Profile 3.1 3.2 3.3 3.4 49 Report Scope and Boundary 3.5 3.6 3.7 3.8 3.9 3.10 3.11 2, 40–49 GRI Content Index 3.12 46 Assurance 3.13 47Governance, Commitments Governance 4.13 4.23 4.32 4.42 4.52 4.62 4.72 4.8 4 SE182 1–7and Engagement 4.95 4.102 Commitments to External Initiatives 4.11 4.122 4.132 Stakeholder Engagement 4.141 4.151, 5 4.161 4.17 1, 5Economic Economic Performance EC13 EC23 EC33 EC43 EC53 SE135 Market Presence EC66 EC76 SE4 SE7 1, 6 34–37 Indirect Economic Impacts EC87, 8 EC9 1, 7, 8 31Environmental Materials EN1 EN2 Energy EN3 EN4 EN59 EN6 10 EN72 E2 E310 11, 42–45 Water EN8 EN9 EN1011 E6 10, 21–23 Biodiversity EN1112 EN12 12 EN1312 EN1412 EN1512 E512 9 Emissions, Effluents and Waste EN16 EN17 EN1813 EN19 E8 E9 E1 E413 E10 E7 42–43 EN20 EN2111 EN22 EN23 EN24 EN25 Products and Services EN2611 EN27 EN29 Compliance EN28 43 Overall EN30SocialLabor Practices and Employment LA1 LA2 LA3 SE6 16, 19–20, 24–27, 34, 41, 44Decent Work Employee Satisfaction SE16 Labor/Management Relations LA45 LA5 Occupational Health and Safety LA6 LA7 LA814 LA9 HS1 HS2 14 HS3 HS5 4–7, 21, 44 Training and Education LA10 LA11 LA12 SE17 Diversity and Equal Opportunity LA132, 6 LA14 LA15 40, 44Human Rights Investment and Procurement Practices HR115 HR2 HR3 SE815 SE9 15 13–17 Nondiscrimination HR4 SE156 37 Freedom of Association and Collective Bargaining HR5 Child Labor HR6 Forced and Compulsory Labor HR7 Security Practices HR815 SE1015 17 Indigenous Rights HR9 HR10 HR11 SE2 15 15Society Community SO11, 7 SO9 SO10 SE11 SE3 SE41, 7 SE51 9–17, 36–37 Corruption SO2 SO35 SO4 SE115 SE125 Public Policy SO516 SO65 SE145, 16 Compliance SO7 SO8Product Responsibility Customer Health and Safety PR14 PR5 HS4 4, 17 4–7 Product and Service Labeling PR317 Marketing Communications PR6 Compliance PR2 PR4 PR7 PR8 PR9Key to Indicators: Information responsive to 1 Throughout print and online report 7 Chevron.com/SocialInvestment 13 Chevron.com/ClimateChangeFully reported in 2011 these indicators appears on 2 Chevron.com 8 ChevronCalifornia.com 14 Chevron.com/HealthSafetyPartially reported in 2011 our websites: 3 Chevron.com/AnnualReport 9 Chevron.com/EnergyEfficiency 15 Chevron.com/HumanRightsNot covered in 2011 4 Chevron.com/OE 10 Chevron.com/EmergingEnergy 16 Chevron.com/EnergyPolicy 5 Chevron.com/BusinessEthics 11 Chevron.com/Environment 17 Chevron.com/MSDS 6 Chevron.com/Diversity 12 Chevron.com/Biodiversity46
    • Assurance Statement Terms of Engagement • Reviewing the documented reporting requirements to validate This Assurance Statement has been prepared for Chevron consistency of scope, definition and reporting for each of U.S.A. Inc. the HES performance indicators. Lloyd’s Register Quality Assurance, Inc. (LRQA) was • Reviewing the processes used at the corporate level to aggre- commissioned by Chevron U.S.A. Inc., on behalf of Chevron gate data and information for inclusion in the final report. Corporation (Chevron), to assure its processes used to produce the Corporate Responsibility Report (CRR) for the calendar Level of Assurance year 2011 (hereafter referred to as “the CRR”). Our terms The opinion expressed in this Assurance Statement has been of engagement were to review the processes for reporting formed on the basis of a reasonable level of assurance. health, environmental, and safety (HES) performance indica- tors. Verifying the accuracy of data and information was LRQA’s Opinion not included in the assurance. Based on LRQA’s approach, it is our opinion that Chevron’s reporting process was effective in delivering HES indicators that LRQA has reviewed Chevron’s CRR reporting processes since are useful for assessing corporate performance and reporting 2008 (for the 2007 CRR). information consistent with the IPIECA/API/OGP Oil and Gas Industry Guidance on Voluntary Sustainability Reporting (2010). Management Responsibility Chevron’s management was responsible for preparing the It should be noted that: CRR and for maintaining effective internal controls over the • Processes were in place that ensure that sites contributing data and information disclosed. LRQA’s responsibility was to core HES metrics understood corporate reporting procedures to carry out an assurance engagement on the CRR in accord- and requirements. ance with our contract with Chevron. • Methods used for calculating each HES performance metric Ultimately, the CRR has been approved by, and remains the were clearly defined and communicated. responsibility of, Chevron. • Chevron’s reporting requirements for HES metrics were LRQA’s Approach understood and carried out. Data collected at the site/local and Our verification has been conducted against the requirements business-unit levels were checked and aggregated into cor- of LRQA’s Report Verification procedure. The objectives of porationwide metrics. the assurance engagement were to validate the integrity • Responsibility for annually reviewing and updating reporting of Chevron’s reporting processes and to evaluate consistency guidelines was clear, with improvement in methodology with the IPIECA/API/OGP Oil and Gas Industry Guidance on regularly undertaken. Voluntary Sustainability Reporting (2010). To form our conclusions, the assurance was undertaken as LRQA’s Recommendations a sampling exercise and covered the following activities: Observations and areas for potential improvement are provided in a report to Chevron management. These observations do• Visiting 18 entities, including 16 operating units on five conti- not affect our conclusions. nents, and addressing Chevron’s principal functional oil and gas, chemical and mining operations throughout 2011 to assess local understanding and implementation of Chevron’s HES reporting requirements.• Visiting Chevron Upstream and Gas headquarters in Houston, Texas, and Chevron Downstream and Chemicals headquarters in San Ramon, California, to assess business-unit understanding Andrea M. Bockrath and implementation of Chevron’s HES reporting requirements. On behalf of Lloyd’s Register Quality Assurance, Inc. 1330 Enclave Parkway, Suite 200, Houston, Texas 77077• Interviewing key personnel to identify and gain an understand- April 12, 2012 ing of Chevron’s reporting requirements. LRQA Reference: UQA4000679 This document is subject to the provisions below: This Assurance Statement is only valid when published with the Report to which it refers. Lloyd’s Register Quality Assurance Limited, its affiliates and subsidiaries and their respective officers, employees or agents are, individually and collectively, referred to in this clause as the “Lloyd’s Register Group.” The Lloyd’s Register Group assumes no responsibility and shall not be liable to any person for any loss, damage or expense caused by reliance on the information or advice in this document or howsoever provided, unless that person has signed a contract with the relevant Lloyd’s Register Group entity for the provision of this information or advice, and in that case, any responsibility or liability is exclusively on the terms and conditions set out in that contract. Because of the inherent limitations in any internal control, it is possible that fraud, error, or noncompliance with laws and regulations may occur and not be detected. Further, the verification was not designed to detect all weakness or errors in internal controls so far as they relate to the requirements set out above, as the verification has not been performed continuously throughout the period and the verification carried out on the relevant internal controls was on a test basis. Any projection of the evaluation of control to future periods is subject to the risk that the processes may become inadequate because of changes in conditions, or that the degree of compliance with them may deteriorate. The English version of this statement is the only valid version. The Lloyd’s Register Group assumes no responsibility for versions translated into other languages. 47
    • GlossaryAa Ee Nn RrAPI ESHIA Nongovernmental Renewable energyAmerican Petroleum Institute Chevron’s Environmental, organization (NGO) Energy resources that are Social and Health Impact Assess- An organization that is inde- not depleted when consumedBb ment is a process designed to pendent from government, or converted into otherBiodiversity logically and consistently identify generally a nonprofit organi- forms of energy (for example,Refers to the diversity of life potentially significant project- zation devoted to providing solar, geothermal, oceanon the planet. It encompasses related environmental, social assistance to or advancing a and tide, wind, hydroelectricgenera, species, habitats and and health impacts. particular cause or issue. power, and biofuels).ecosystems, and the processesthat support them. Ff Oo Ss Flaring and venting OGP Social investmentCc The burning or release of International Association of Oil The resources Chevron providesCapacity building natural gas that is often pro- & Gas Producers with the objective of benefitingA key area of focus for Chevron’s duced in association with crude our external stakeholders, oil, a process that typically OHSAS 18001:2007 and building and maintainingsocial investment efforts, which occurs when there is no market An international Occupational relationships to supportmeans targeting support toward or onsite use for the gas. Health and Safety Assessment our business.programs that help individuals Series management systemand institutions develop the skills, specification. Stakeholdercapabilities and expertise they Gg At Chevron, defined as thoseneed to succeed. Geothermal energy Operational Excellence who affect, are affected by, A renewable source of energy Management System (OEMS)The Chevron Way or have a legitimate interest in that uses the heat energy Chevron’s standard approachExplains our values: who we are, our company’s performance. of the earth for heating or to to systematic managementwhat we do, what we believe create electricity. of safety, health, the environ-and what we plan to accomplish. Uu ment, reliability and efficiency Upstream Greenhouse gases (GHGs)Corporate responsibility in order to achieve world-class The industry term for opera- Gases that trap heat in thePutting The Chevron Way values performance. tions related to exploring atmosphere; such gases includeinto action across environmental, for, developing and producing water vapor, ozone, carbonsocial, and governance issues dioxide, methane, nitrous oxide, Pp crude oil and natural gas; forand priorities. Partner marketing natural gas; and for hydrofluorocarbons, perfluoro- In this report, partner is used transporting crude oil, natural carbons and sulfur hexafluoride.Dd in its broad sense to mean a gas and petroleum productsDownstream person or organization associ-The industry term for opera- Ii ated with another in a common by pipeline and marine vessel. IPIECAtions related to refining crude activity or one that shares a International Petroleum Industryoil into finished petroleum mutual interest. It does not imply Environmental Conservationproducts, and for marketing a member of a contractual part- Associationcrude oil and the many products nership in which the partnersderived from petroleum. ISO 14001:2004 jointly own and carry on a busi- Environmental management ness and proportionally share system standard developed in liabilities, profits or losses of by the International Organization the business. for Standardization. Renewable Energy Near Chevron’s molybdenum mine in Questa, New Mexico, the company has commissioned a 20-acre (8.2-ha) solar demonstration project. Chevron is using this existing asset to explore technologies to help operations become more efficient. This concentrating photovoltaic solar installation is one of the largest in the U.S.48
    • We make significant social investments in thecommunities where we operate. To learn more, pleasevisit Chevron.com/CorporateResponsibility.About This ReportThis report covers 2011 data and activities. We also occasionally mention activities that took place before 2011 and in early2012 when they help provide a clearer picture of our performance. This report covers our owned or operated businesses anddoes not address the performance of our suppliers, contractors or partners unless otherwise noted. All financial informationis presented in U.S. dollars unless otherwise noted. Our previous report was published in May 2011 and covers 2010 dataand activities.We continue to be informed by reporting frameworks and guidelines that include the Global Reporting Initiative (GRI) andthe Oil and Gas Industry Guidance on Voluntary Sustainability Reporting, 2nd edition, published in 2010 by the InternationalPetroleum Industry Environmental Conservation Association (IPIECA) and the American Petroleum Institute (API). We includedan index to help readers find information corresponding to the GRI and API/IPIECA indicators (see page 46).This report, previous editions of our report and additional information can be found at Chevron.com/CorporateResponsibility.We welcome your comments and feedback at Chevron.com/Contact/EmailChevron.Ms. Lauren BuggsChevron Corporation6101 Bollinger Canyon Road, Room 3170San Ramon, CA 94583-2324 WRITER Page 30 (from top): KernCautionary Statement Relevant to Forward-Looking Information Peter Bartelme Educational Television Network; PRODUCTION EDITOR Marilyn Hulbert; Kevin TongThis Corporate Responsibility Report by Chevron Corporation contains forward-looking Page 32: Marc Marriott Eileen Ostrow Feldmanstatements relating to the manner in which Chevron intends to conduct certain of its activities, PHOTO CREDITS Page 33: Marilyn Hulbertbased on management’s current plans and expectations. These statements are not promises Page 35: Courtesy of Morgan Cover: Marc Marriott Smart Development Foundationor guarantees of future conduct or policy and are subject to a variety of uncertainties and other Page 3: Eric Myer Page 36: Courtesy of PIND Page 4: Jim Karageorgefactors, many of which are beyond our control. Page 8: Tantyo Bangun Page 37: Courtesy of Morgan Smart Development Foundation Page 10: Oetomo Wiropranoto Page 38: Sienty-Arief PhotographyTherefore, the actual conduct of our activities, including the development, implementation or Page 11 (from top): Oetomo Page 41: Marc Marriottcontinuation of any program, policy or initiative discussed to forecast in this report, may differ Wiropranoto; Marc Marriott Page 48: Paul S. Howell Pages 12–14: Marc Marriottmaterially in the future. The statements of intention in this report speak only as of the date Page 15: Peter Cannonof this report. Chevron undertakes no obligation to publicly update any statements in this report. Pages 16 & 17: Marc Marriott Pages 18–20: Marc Marriott Page 23: Marilyn HulbertAs used in this report, the term “Chevron” and such terms as “the company,” “the corporation,” Page 25: Graham Kietzmann“their,” “our,” “its,” “we,” and “us” may refer to one or more of Chevron’s consolidated Page 26: Greg Shaw/Black Vanillasubsidiaries or affiliates or to all of them taken as a whole. All these terms are used for con- Page 27: Darren Rix Pages 28 & 29: Marc Marriottvenience only and are not intended as a precise description of any of the separate entities,each of which manages its own affairs.
    • 2011 Annual Report 2011 Supplement to the Annual Report 2011 Corporate Responsibility Report Learn More Online Scan this QR code with your smart- The Annual Report, the Supplement to the Annual Report phone to access Chevron’s 2011 and the Corporate Responsibility Report are available on Corporate Responsibility Report and the Internet at Chevron.com/Publications. related videos online. QR readers are available from your phone’s app store. Chevron.com/CR2011 This report is printed on Forest Stewardship Council– certified Mohawk Options 100, made from 100 percent post-consumer waste. It is processed elemental chlorine-free and produced using wind energy. Printed by Lithographix, Inc., whose rooftop solar panels are expected to offset the company’s energy demands by 30 percent. Design: Sequel, New YorkChevron Corporation6001 Bollinger Canyon RoadSan Ramon, CA 94583-2324 USA © 2012 Chevron Corporation. All rights reserved.www.chevron.com 913-0386I 5/12 (20M)