2015 Chevron Corporate Responsibility Report

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2015

corporate responsibility
report highlights

getting results
the right way
for complete reporting, visit
chevron.com/reporting
the chevron way explains
who we are, what we do, what we believe
and what we plan to accomplish

At the heart of The Chevron Way is our visionto be the global energy
company most admired for its people, partnership and performance.
We make this vision a reality by consistently putting
our values into practice. The Chevron Way values distinguish us and
guide our actions so that we get results the right way.
Our values are integrity, trust, diversity, ingenuity, partnership, protecting
people and the environment, and high performance.

read morechevron.com/chevronway

unlocking
opportunities
together
We partner with some of our largest As a result, many of these farmers now Currently, more than 90 farmers have
international contractors to bring sell their fruits, vegetables and other taken part in the program.
more local producers into their products to Compass, which means
On the cover: By providing avocados from
supply chains. In Colombia, we are Chevron Colombia employees are
his La Guajira Province, Colombia, farm
collaborating with global food services enjoying this locally grown food when to Chevron through the Compass-VITAL
contractor Compass Group and the they sit down to eat at our facilities. partnership, Exavier Guerra has doubled his
nongovernmental organization VITAL More important, those farmers are income and developed the technical and
on a partnership designed to help enjoying improved livelihoods thanks business skills needed to commercialize his
smallholder farmers meet Compasss to the reliable demand and fair pricing surplus produce.
high standards of quality. that Compass offers as a customer.

learn morechevron.com/creatingprosperity
a message from our chairman and
chief executive officer

2015 was one of our best years ever in preventing significant


safety and environmental incidents. Our Days Away From
Work Rate, Motor Vehicle Crash Rate and petroleum spill
volume set record lows, and our Total Recordable Incident
Rate matched last years record low. Chevron is committed
to meeting our goal of zero incidents and will continue to
focus on achieving world-class performance in all measures
of safety and environmental stewardship. This includes
managing our use of freshwater resources and reducing
natural gas flaring and venting to minimize greenhouse gas
emissions. Our Operational Excellence Management System
provides a disciplined approach to working safely, protecting
the environment, and operating reliably and efficiently.

You can track our progress at chevron.com/cr, where we


provide additional details about our efforts to partner with
people, projects and communities to create prosperity and
make lives better. Over the past 10 years, we have made
approximately $1.9 billion in social investments in local
communities. In 2015, we advanced our strategic programs
and partnerships with more than $233 million in global
social investments. We focused these investments in three
John S. Watson
core areashealth, education and economic development
Chairman of the Board and
to develop skilled workers, improve access to health care,
Chief Executive Officer and boost local and regional economies.

For more than 135 years, Chevron has focused on safely These social investments complement our investments in
developing affordable and reliable energy to enable global projects and local goods and services, creating jobs and
economic growth and make lives better. Our products generating revenues for the communities where we operate.
and services continue to be critical for economic progress, In 2015, we spent $54 billion on goods and services globally.
and our fundamentals remain strong. We also remain com- Going forward, our spending in this area will reflect our
mitted to operational excellence (OE) and the communities continued commitment to the communities where we
in which we work. operate as well as the business environment.

We are guided, as always, by The Chevron Way. This We thank you for your confidence and investment in Chevron
road map underpins the character of our company and as we continue working every day to achieve our vision
establishes the values by which we deliver our results. of being the global energy company most admired for its
Our 2015 Corporate Responsibility Report highlights three people, partnership and performance.
of our valuesacting with integrity, protecting people
and the environment, and engaging in partnership. It also
illustrates our belief that corporate responsibility is about
putting the values of The Chevron Way into action.

We conduct our business in a socially responsible and May 2016


ethical manner. We respect the law, support universal human
rights, protect the environment and benefit the communi-
ties in which we work. We strive to meet the highest ethical
standards in all business dealings, and in 2015, we reinforced
this with our service providers, underlining our expectation
that they abide by our human rights policies.

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1
corporate responsibility at chevron

for more than 135 years, chevron


has proudly developed the energy that people
and businesses depend onhelping to
spur economic growth and improve the quality
of life for communities worldwide

We define corporate responsibility as putting the values of Business Conduct and Ethics Code, our Human Rights
The Chevron Way into action. These values place the highest Policy, and our Operational Excellence Management System.
priority on maintaining ethical standards, respecting the This framework of policies and processes provides a stand-
law, supporting universal human rights, protecting people ardized approach that enables us to identify and manage
and the environment, and benefiting the communities where the corporate responsibilityrelated risks we encounter in
we work. Our focus on corporate responsibility is integrated our global business and to promote continual improvement
into key business policies and processes, including our of our safety, environmental and social performance.

Above: Students at Dossymov School #12 in Atyrau, Kazakhstan, participate in interactive life-skills training as part of the Atyrau Youth
Development Initiative, a social investment program designed to prepare youth for future success in the workplace and society.

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prioritizing issues for our reporting

focusing on
what matters
Our corporate responsibility reporting focuses on environ-
mental, social and governance (ESG) issues that matter
to our business and our stakeholdersinvestors, customers,
host governments, local communities and employees.
To select the content for our 2015 Corporate Responsibility
Report Highlights and the corporate responsibility section
of chevron.com, we used an issue prioritization process
that involved the following steps:
This Highlights report
Step 1: A team of employees from across our functions and represents a snapshot of
business segments identified ESG topics that are salient
to our stakeholders and our business. To do so, the team our 2015 performance.
used internal and external sources, including international
reporting guidelines and frameworks, ESG analytics, topics
Our complete reporting
addressed in previous Corporate Responsibility Reports, on ESG issues and
feedback received on the 2014 Corporate Responsibility
Report Highlights, media analysis, industry peer reviews, indicators can be found at
and a range of stakeholder engagements.
chevron.com/reporting
Step 2: The team conducted an initial prioritization of ESG
issues based on their relevance to our business.

Step 3: The team sought feedback on the initial prioritiza-


tion of issues through dialogues with internal subject matter
experts and external stakeholders.
contents
Step 4: The team determined the issues that are of highest
priority for our reporting, and we discuss each in this report
and on our website. 4 Governance and ethics
6 Human rights
Our prioritized issues reflect topics covered in the 2015
8 Managing operational risk
edition of the IPIECA/API/IOGP* Oil and gas industry
10 Serious incident and fatality prevention
guidance on voluntary sustainability reporting. For 2015,
Chevron reported on all 34 indicators. An IPIECA/API/IOGP 12 Emergency management
content index is available on page 29 of this report and 14 Environmental stewardship
at chevron.com/IPIECA. 16 Climate change and energy efficiency
*IPIECA (the global oil and gas industry association for environmental and
18 Water
social issues)/American Petroleum Institute/International Association of 20 Creating prosperity
Oil & Gas Producers.
24 Performance data
29 Additional reporting information

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integrity

achieving
results through
strong governance
and ethics
Among Chevrons core values
is integrity, which means:
We strive to meet
the highest ethical standards
in all business dealings.

We are honest with


others and ourselves.

We do what we say we will do.

learn morechevron.com/ethicsgovernance

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Chevron holds its workforce to the highest standards of integrity and
honesty and encourages employees to report questionable conduct.
We believe in being transparent with and responsive to our stakeholders
at all times, and we strive to comply with the letter and the spirit of
all applicable laws when conducting Company business.

board of directors governance


Chevron is governed by a Board of Directors that oversees For Chevron, good corporate governance means having
the Companys business affairs and meets throughout structures and processes in place to make sure that the
the year. The Board is committed to strong corporate Companys decisions and actions are in the best interests
governance structures and practices that help the Company of our stockholders. It also means being transparent with
achieve business resultsthe right way. The Board has four and responsive to our stockholders. Through our Investor
standing committees, each composed solely of independent Relations and Corporate Governance departments, we
Directors: Audit; Board Nominating and Governance; engage directly with many of our stockholders in meetings
Management Compensation; and Public Policy. Directors to discuss operational, financial, governance, executive
fulfill their responsibilities through Board and committee compensation, environmental, safety, social and policy
meetings and also through other communications with issues, and we engage with all of them through reports,
management. The Board monitors corporate perform- press releases and the Companys website. All stockholder
ance, the integrity of Chevrons financial controls, and the communications addressed to the nonemployee Directors
effectiveness of its legal and political compliance and public are available to the Board and reviewed by the Board
policy and social programs. It also oversees management Nominating and Governance Committee.
and succession of key executives and Chevrons strategic
and business planning process.
business ethics
Chevron takes the conduct of its employees seriously
board and committee oversight of risk
and encourages questionable conduct to be reported.
Chevron faces a broad array of risks, including market, This may include, for example, violations of Company policy
operational, strategic, legal, political and financial. or of the Chevron Business Conduct and Ethics Code,
To determine if appropriate risk management systems which contains a description of how we administer oversight
are employed throughout the Company, the Board and its of our compliance program and information about the
committees oversee Chevrons risk management policies avenues through which employees can report misconduct.
and practices. The Public Policy Committee assists the One reporting method available to the entire workforce is
Board in fulfilling its oversight of risks that may arise in the Chevron Hotline, which is operated offsite by Global
connection with the social, political, environmental, human Compliance Services (AlertLine), an independent agent.
rights and public policy aspects of Chevrons business In addition, our Global Office of Ombuds provides a safe,
and the communities in which it operates. The committee confidential environment outside formal reporting channels
discusses risk management in the context of, among to resolve workplace concerns. Employees may contact
other things, legislative and regulatory initiatives, safety an Ombudsman at any time, regardless of the stage of the
and environmental stewardship, community relations, concern or severity of the issue.
government and nongovernmental organization relations,
and Chevrons reputation. The committee reports its
discussions to the full Board for consideration and action
when appropriate.

additional resources
chevron.com/corporategovernance
chevron.com/BCEC

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integrity

respecting
human rights
although governments have the
primary duty to protect and ensure fulfillment
of human rights, chevron believes that
we have a responsibility to respect human
rights and that we can play a positive
role in the communities where we operate

learn morechevron.com/humanrights

In Rakhine State, Myanmar, Kayala Oo of Unocal


Myanmar Offshore Co., Ltd. (a Chevron subsidiary)
leads a social impact assessment meeting with
local community members and other stakeholders.
human rights policy to collective bargaining, the elimination of forced and com-
pulsory labor, the abolition of child labor, and the elimination
Chevrons Human Rights Policy, adopted in 2009, fosters of discrimination in the workplace. We also use regular
greater awareness of human rights issues throughout communication with our key suppliers to reinforce our
the Company and enhances our capabilities to identify human rights principles and to raise our suppliers aware-
and manage human rights across our business. It focuses ness of potential human rights issues.
on evaluating how our operations may impact communities,
engaging with suppliers on issues related to human rights, In 2015, we sent a letter to the senior leaders of more than
conducting responsible security operations and treating our 400 goods and services companies. The letter, which is
employees in a manner consistent with The Chevron Way. posted online at chevron.com/humanrights, outlined
The policy is governed by an executive leadership body and Chevrons commitment to respecting human rights and our
involves oversight by our Board of Directors. expectation that our business partners treat their employees
and interact with communities in a manner consistent with
We operationalize our Human Rights Policy by disseminating our Human Rights Policy and the ILOs core labor principles.
processes, procedures and tools to Chevron practitioners,
including guidance on training and conducting risk assess-
ments, on managing relationships with communities, and on security providers
engaging with business suppliers and security providers.
As a founding member of the Voluntary Principles on
Our policy is consistent with the United Nations Guiding Prin-
Security and Human Rights Initiative (VPI), which launched
ciples on Business and Human Rights, which were developed
in 2000, Chevron has long demonstrated its commitment to
through consultation with stakeholders, including Chevron.
responsible security. The VPI is a multistakeholder initiative
Our policy is embedded in the Chevron Business Conduct with government, civil and business participants. It pro-
and Ethics Code compliance training for all employees. motes implementation of principles that guide extractive
We also provide various levels of training for individuals companies on how to provide security for their operations
most likely to encounter issues related to human rights. in a manner that respects human rights. These principles
are embedded throughout Chevrons global operations.
Our Operational Excellence Management System provides a
communities comprehensive framework to identify and mitigate security
risk and helps align security operations with our Human
Chevron identifies and manages potential community
Rights Policy. In 2015, we updated the process governing
impacts through a variety of processes and tools, including
security guidelines and safeguards, helping us continue con-
social impact assessments and guidance on how best to
ducting security operations in compliance with our Human
engage with indigenous peoples and manage resettlement.
Rights Policy and applicable national and international law.
In 2015, Chevron launched exploration offshore Myanmar.
We are committed to maintaining our respect for human
employees
rights throughout our operations. We engaged our seismic
acquisition contractor in discussions on the management We treat our employees with dignity and respect and pro-
of potential scenarios related to its offshore work that could mote diversity and inclusion in the workplace. Our Company
involve human rights issues. In addition, we recently con- policies and procedures adhere to all applicable domestic
ducted a social impact assessment using an internationally laws and are consistent with the ILOs core labor principles.
respected third-party contractor with expertise in human
rights. In 2016, we will report on the corporate responsibil-
ity efforts we have undertaken in Myanmar in accordance
with the U.S. Department of States Responsible Investment
Reporting Requirements for Burma.

suppliers committed to diversity and inclusion


Chevron spends billions of dollars every year on goods In 2015, for the 11th consecutive year, we achieved
and services globally. We encourage our suppliers to treat a rating of 100 percent on the Human Rights
Campaign Corporate Equality Index, which ranks
their employees and interact with communities in ways that U.S. companies committed to lesbian, gay, bisexual
respect human rights. We require that our key suppliers and transgender (LGBT) equality in the workplace.
adhere to all domestic laws and encourage them to align Learn more about our diverse, engaged
their practices with the International Labour Organizations and capable workforce at chevron.com/diversity.
(ILO) core principles of freedom of association, the right

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protecting people and the environment

managing
operational risk
fundamental to the chevron way is
our commitment to protecting people and the
environment, which includes developing
energy safely and reliably to power human and
economic progress worldwide

learn morechevron.com/OE

0.02
motor vehicle
crash rate*
In 2015, our workforce Motor Vehicle Crash Rate
was the lowest we have ever recorded.

*Workforce vehicle incidents per million miles driven.

Above: Roger Dickinson, Pascagoula Base Oil Plant unit head


operator, inspects the fire spray deluge at Chevrons Pascagoula,
Mississippi, refinery.

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For the past 15 years, we have expanded our systems to

5
support a culture of safety, environmental stewardship and
top performance. We call this operational excellence
(OE), and it drives everything we do. Our workforce truly
believes that incidents are preventable, and we have
policies, processes, tools and behavioral expectations in
place to assist us in achieving our goal of zero incidents. operational excellence
Our Operational Excellence Management System (OEMS)
objectives
is a comprehensive, proven means to systematically
manage process safety, personal safety and health, the Chevrons OEMS provides a disciplined approach
environment, reliability, and efficiency. Through disciplined toward managing process safety, personal safety
application of the OEMS, we identify and mitigate risks and health, the environment, reliability, and
by integrating OE processes, standards, procedures and efficiency. We rigorously deploy our processes,
behaviors into our daily operations. Our OEMS is aligned standards and regulatory requirements to assure
with ISO 14001:2004 and OHSAS 18001:2007, as well as compliance, identify and manage risk of incidents,
with the Center for Chemical Process Safetys Guidelines ensure preparedness for emergency response,
for Risk-Based Process Safety.* and improve overall performance, focusing on
five areas:
The single largest factor for success in OE is leadership
accountability. Leaders are focused on getting results the Safety: Achieve an incident- and injury-free
right way and behaving in accordance with our values. workplace.
Executives and managers are accountable for running the
Health: Promote a healthy workforce and mitigate
OEMS, which involves oversight by our Board of Directors.
significant workplace health risks.
Through their actions, leaders at every level manage and
drive execution and reinforcement of the OE culture, instill Environment: Identify and mitigate environmental
operational discipline, and work to ensure that everyone and process safety risks.
in their organization complies with OE requirements.
Reliability: Operate with industry-leading asset
Across our business, leaders inspire their teams to strive to
integrity and reliability.
achieve zero safety, health and environmental incidents.
Efficiency: Efficiently use natural resources
Within the OEMS, we use a management system process and assets.
to drive continual improvement toward world-class perform-
ance. This process is linked to business planning and begins Our commitment to OE extends beyond our
with defining a vision of success and setting objectives. employees to include our contractor workforce,
Gaps between current performance and these objectives our supply chain partners and the communities
are identified during annual assessments. We develop plans where we operate.
to close gaps, and we then thoroughly review implementa-
tion performance.

We adopt and share best practices with our business and


industry partners and continually take action to improve our
practices and meet our commitments. In 2015, we contin-
ued to emphasize our focus on serious incident and fatality
prevention as our most important priority.
*Attestation: In 2015, Lloyds Register Quality Assurance Ltd. (LRQA) attested
that our OEMS meets the requirements of the International Organization
for Standardizations environmental management system standard and the
additional resources
Occupational Health and Safety Assessment Series management system
specification and verified that the OEMS is implemented throughout the
chevron.com/OEMS
corporation. Chevron has engaged LRQA for independent verification of chevron.com/OEtenets
the OEMS since 2004.

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protecting people and the environment

preventing
serious
incidents
chevron is committed to preventing
serious incidents and fatalities, which requires
operational discipline among our more than
58,000 employees and our full-time-equivalent
contractor workforce of 214,000

learn morechevron.com/healthsafety

Kelly Gray, Chevron Australia production


technician, monitors operating units in the
Gorgon Operations central control room
on Barrow Island, Western Australia.

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We identify and mitigate risk by applying policies, processes and
technologies to maintain our focus on achieving zero incidents.
We also build leader fluency in human performancethe way people,
culture, equipment, work systems and processes interact. Leaders
are integrating these concepts to improve procedures and incident
investigation quality and learning.

personal safety We are working with other companies in our industry to


improve work processes that will help us prevent these
Personal safety is managed by multiple processes within serious incidents. We continue to maintain our sharp focus
our Operational Excellence Management System (OEMS). on verifying and validating that safeguards are in place,
Written safe-work practices are a core part of our compre- functioning and effective.
hensive safety program. These safe-work practices help
ensure that potentially hazardous work, such as electrical
work and entry into a confined space, is properly planned, process safety
permitted, executed and closed out to prevent workplace
We also apply our OEMS to manage process safety as
injuries and incidents. We take steps to ensure that our
we work to prevent serious incidents, such as explosions,
contractors meet the same safety principles by making our
fires and accidental releases. To identify hazards and
expectations clear and verifying compliance with require-
reduce risk, we conduct systematic reviews of facilities
ments for safe-work practices.
and projects, engaging third-party reviewers in certain
We eliminate or mitigate risks by identifying potential cases, and we conduct in-depth hazard analyses to prevent
hazards, taking actions to reduce them and sharing what injury and loss of containment. Multiple layers of protection
we know throughout our operations. To accomplish this, we are engineered into our designs to safeguard our operations
have many toolsincluding our Preventing Serious Injuries and prevent or mitigate the possible effects of human
and Fatalities Field Guideto help our workforce identify mistakes and mechanical failures.
potential hazards prior to starting work. These tools help
In 2015, we achieved a new low in combined Tier 1 and Tier 2
those involved in high-risk activities identify and control
loss-of-primary-containment incidents.* Programs aimed
the significant potential hazards unique to each job activity.
at improving these metrics involved enhancements to asset
We also started implementing worker-level training to
integrity management, effective operating procedures and
increase awareness of error-likely situations.
risk management, process safety performance tracking, well
Although we have achieved industry-leading performance safety, and the building of process safety competency at
in preventing injuries, we still experienced three contractor all levels of the organization.
fatalities in 2015, which is not acceptable to us. Each incident
Despite our success in reducing loss-of-containment events,
is thoroughly investigated so we can understand and learn
serious incidents in 2015 remind us that we must continue
from the root causes and put solutions in place to help
to work toward zero process safety incidents. Through what
prevent similar incidents. We share lessons learned through-
we learn, we improve our procedures, training, maintenance
out the Company and apply them in our work practices.
programs and designs to avoid repeating incidents. We share
We have intensified management focus on assuring that
lessons learned throughout the Company and with industry
critical safeguards are in place and functioning for high-
organizations, such as the American Petroleum Institute and
risk activities.
the Center for Chemical Process Safety.
In 2015, we introduced the Serious Injury and Fatality Metric *American Petroleum Institute Recommended Practice 754 defines Tier 1 loss-
throughout the Company to help our operations reduce of-primary-containment (LOPC) incidents as certain significant unplanned or
uncontrolled releases of material from primary containment, including nontoxic
the potential for high-consequence events. We analyze actual and nonflammable materials. A Tier 2 Process Safety Event is an LOPC with
incidents and near-miss events to gauge whether they had lesser consequence.
the potential to cause a fatality or serious injury. The metric
helps facilitate dialogue and drive our operational focus
on events with the highest potential consequence and the Please refer to page 26 for an in-depth look at
application of safeguards that keep us operating safely. our health and safety performance data.

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protecting people and the environment

preparing for
potential
emergencies
chevron has processes and tools in place to
effectively manage emergency response, business continuity
and crisis management efforts, which are focused
on prevention, preparedness, response and recovery

learn morechevron.com/emergencymanagement

Chevron uses a tiered approach to emergency manage- Chevron also participates in international oil spill
ment. Operating units develop site-specific emergency cooperatives and has relationships with outside experts
response and business continuity plans to prepare for all and contractors. We sit on the boards of directors of
identified significant risks. Chevrons Center for Emergency the two largest global oil spill cooperatives, the Marine
Preparedness and Response (CEPR) is responsible for Preservation Association and Oil Spill Response, Ltd.
providing guidance and expertise in emergency response, We also work with trade associations, including the
crisis management and business continuity. The CEPR American Petroleum Institute and IPIECA, the global
develops and maintains emergency notification procedures; oil and gas industry association for environmental and
trains and supports emergency response teams; conducts social issues, to advance oil spill preparedness worldwide.
drills; and routinely practices with organizations that provide
emergency response support. Chevron also maintains We contract with spill response experts and organizations
Corporate Emergency Response Teams, composed of well- that can support us in areas such as incident management,
trained personnel, to assist our operating units worldwide wildlife management, oil spill and air dispersion modeling,
with emergency response preparedness. toxicology, chemistry, fire-fighting, communications,
shipping, and salvage.
In 2015, a major oil spill response drill conducted in
Richmond, California, demonstrated how our Corporate Our executive crisis management committee conducts
Emergency Response Team worked effectively with local annual exercises to prepare for a range of scenarios that
authorities to improve oil spill response in San Francisco may affect the Company or require coordination across
Bay. The exercise included the use of cutting-edge drone multiple operating companies.
technology to map the path of a simulated spill to improve *The National Preparedness for Response Exercise Program (PREP) was
response capabilities. These exercises met the certification developed to establish a workable exercise program that meets the intent of
section 4202(a) of the Oil Pollution Act of 1990. PREP is a unified federal effort
requirements of the voluntary National Preparedness and satisfies the exercise requirements of the Coast Guard, the Environmental
for Response Exercise Program,* in which Chevron Protection Agency, the Research and Special Programs Administration Office of
Pipeline Safety, and the Minerals Management Service.
participates annually.

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In 2015, Chevron conducted a major oil
spill response drill in Richmond, California,
in coordination with local, state and
federal agencies.

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13
protecting people and the environment

advancing
environmental
stewardship
protecting people and the environment
is a chevron way value that guides
our actions so that we get
results the right way, every time

learn morechevron.com/environment

Great hornbills (Buceros bicornis),


a large bird species from the hornbill
family, found near Chevrons
Dumai Camp, Sumatra, Indonesia.

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14
Every day, our employees strive to responsibly manage

4
the environmental aspects of our operations, which include:
Accidental releases prevention and response
Air emissions
Energy efficiency and greenhouse gas
Natural resources, including water
Site residual impacts
environmental
Waste principles
Wastewater

We make continual improvements in our environmental We have four environmental principles that
performance by following our Operational Excellence define our commitment to doing business in an
Management System and our Environmental Stewardship environmentally responsible manner, as we believe
Corporate Standard Process, which require our businesses that protecting the environment is compatible
to systematically identify, assess and prioritize environ- with providing energy. These principles are imple-
mental risk and improvement opportunities. We also mented across the life of our assets:
measure our environmental performance, which enables Include the environment in decision making
us to make informed business decisions around protection We all make decisions that may affect the
of the environment. environment. From our everyday actions to
major capital investments, we make better
decisions when we consider the environment.
accidental releases
Reduce our environmental footprintWe use
In 2015, Chevrons petroleum spill volume was the lowest our business processes to identify and manage
ever recorded. These are some of the safeguards we use risks to the environment and reduce potential
to prevent accidental releases, including petroleum spills: environmental impacts throughout the life
of our assets.
Assurance of the integrity of our equipment design
Operate responsiblyWe apply our Tenets of
Execution of maintenance programs
Operation and improve reliability and process
Personnel training
safety to prevent accidental releases.
Steward our sitesWe work to decommission,
oil spills to land or water* remediate and reclaim operating and legacy
sites with the aim of beneficial reuse.
60
60
Recent examples of how our environmental
principles have been implemented include:
Reducing our footprint in Australia
On Barrow Island, Australia, where we operate
Thousands of barrels

the Gorgon liquefied natural gas project, we


carry out the worlds largest nongovernmental
30 quarantine initiative that seeks to preserve the
unique ecosystems on and around the island.
Learn more at chevron.com/barrowisland.
Site stewardship in New Mexico
In Questa, New Mexico, at the site of a century-old
2 molybdenum mine, we worked to restore Eagle
Rock Lake, a key recreational resource for the local
1 2 1 community. The project involved remediation of
0
impacted sediment and a redesign of the surface
Year 2011 2012 2013 2014 2015
to enable improved access and better represent
Chevron ranking relative to competitors, 1 being the lowest rate
the regions aesthetic.

Competitor range: British Petroleum plc, ExxonMobil Corp.,
Royal Dutch Shell
*Source: Annual company sustainability reports: British Petroleum plc,
ExxonMobil Corp. and Royal Dutch Shell. When needed, units converted
to thousands of barrels (bbl) based on the following assumptions:
1 ton = 7.3 bbl; 1 bbl = 0.16 cubic meters; 1 bbl = 159 liters.

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15
protecting people and the environment

addressing
climate change and
energy efficiency
as the world works to address climate risks, we must create
solutions that achieve environmental objectives
without undermining growth of the global economy and
our aspirations for a better quality of life for all

learn morechevron.com/climatechange

99
GHG emissions by source*
Million metric tons of CO-equivalent

points
We received an overall
score of 99 out of 100 points
in the 2015 CDP S&P 500
Climate Change Report
the highest among all integrated
oil and gas companies.
Year 2011 2012 2013 2014 2015
Total 60 57 57 56 57 This score reflects
Combustion 66.2% 67.5% 67.8% 66.5% 68.0% Chevrons transparency in
Other 12.2% 13.0% 14.8% 17.5% 16.6% disclosing our GHG emissions
Venting 4.7% 3.9% 4.2% 4.7% 4.1% and climate policies.
Flaring 16.9% 15.6% 13.2% 11.3% 11.3%

*Equity basis. Please see footnotes 6 and 7 on page 28 for additional information.

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Chevron shares the concerns of governments and the Carbon dioxide injection
public about climate change risks and recognizes that the Chevron Australia commenced operation of the first train*
use of fossil fuels to meet the worlds energy needs is a of the Gorgon liquefied natural gas (LNG) project on Barrow
contributor to rising greenhouse gases (GHGs) in the earths Island at the beginning of 2016. Construction continues
atmosphere. GHGs contribute to an increase in global on the second and third trains, which will include execution
temperature. We believe that taking prudent, practical and of one of the largest carbon dioxide injection projects in
cost-effective action to address climate change risks is the the world.
right thing to do. Mitigation of GHG emissions, adaptation to *A train in this case refers to an LNG plants liquefaction and purification facility.
climate change, and continuation of scientific and techno-
logical research should all be considered.
energy efficiency
greenhouse gas management Of all the ways to meet the worlds expanding energy needs,
efficiency and conservation are the most cost effective and
We are committed to managing our GHG emissions by beneficial to the environment. Using energy more efficiently
reducing flaring and venting and improving energy helps preserve our finite natural resources, lower energy
efficiency in our day-to-day operations. We compile inven- costs and reduce carbon emissions.
tories of our emissions, we undertake projects to manage
operating emissions and we apply innovative technolo- Some of our upstream operations are making sustained
gies to continually improve the energy efficiency of our improvements in energy efficiency through implementation
operations. We also assess the GHG emissions of our capital of their Surface Facilities Optimization Process, which
projects. When developing and approving major capital facilitates identification, evaluation and implementation
projects, we estimate a projects incremental emissions of projects that will conserve energy resources. In our
profile, assess the financial impact of GHG regulations, and IndoAsia Business Unit Sumatra operations, optimization
describe the emissions reduction options considered and efforts have resulted in a 7.5 percent improvement in fuel
implemented. We have developed tools to identify, assess gas use efficiency. In the Gulf of Mexico, use of a fuel gas
and rank emissions reduction methods; conduct economic dashboard and systematic energy surveys significantly
analysis; and integrate GHG factors into decision making improved fuel efficiency at more than 18 offshore platforms.
and overall project development and management. In the Saudi-Kuwaiti Partitioned Zone, more than 150 wells
were tied in to the local power grid, eliminating the need
The primary sources of our GHG emissions are combustion for numerous low-efficiency diesel-fired generators. In our
of fuels for electricity and steam generation during our San Joaquin Valley Business Unit, projects to optimize
operations and, in some locations, flaring and venting of steam generation and distribution resulted in a mitigation
the natural gas that is extracted along with crude oil. of 20,000 metric tons of GHGs through reduced fuel use.

Reductions in flaring and venting Building on examples like these from across the corporation,
Chevron is reducing natural gas flaring and venting and Chevron began development and implementation of a
the GHG emissions that result from this practice. We are more systematic energy management practice, targeting
a member of the World Bankled Global Gas Flaring operations that have the highest energy intensity.
Reduction Partnership, and we have developed internal
country-specific plans to minimize gas flaring. Where
feasible, we seek opportunities to reduce flaring and
venting in our global operations.

Over the past five years, our upstream operations have


made significant progress in reducing routine flaring additional resources
through the completion of various gas gathering and chevron.com/climateprinciples
flare reduction projects. In 2015, our Nigeria/Mid-Africa
chevron.com/GHGmanagement
Business Unit commenced operation of the Escravos
chevron.com/energyefficiency
Gas Plant Phase 3B, which will reduce flaring from nine
offshore production platforms. In addition, our Southern
Africa Strategic Business Unit completed the Nemba
Enhanced Secondary Recovery Project, which will reduce
Please refer to pages 24 and 25 for
our flaring volumes in Angola.
methane, other GHG emissions and energy
consumption data.

chevron.com/cr
17
protecting people and the environment

managing
water
resources
chevron recognizes the value of water
as a fundamental social,
environmental and economic resource

learn morechevron.com/water

A water recycling plant at Chevrons


Cape Town, South Africa, refinery has
reduced the facilitys water withdrawals
by 75 percent.

chevron.com/cr
18
As a global company, we know that access to adequate supplies of
water, both fresh water and water of lower quality, is essential for the
communities where we operate as well as for our ability to produce
energy around the world. As users of this critical natural resource,
we must manage it responsibly.

water management fresh water withdrawn


We communicate our commitment to responsible manage-
ment of freshwater resources in our Freshwater Position
Statement, which states that we strive to do the following:
Continually improve environmental performance and
reduce impacts from our operations.
Integrate freshwater conservation and efficiency drivers
into our business decision-making processes and opera- Million cubic meters
tional management.
Conserve our use of fresh water in freshwater-constrained
areas by reusing and recycling water and reducing the
amount used.
Account for the use of fresh water in our operations with
appropriate metrics.
Engage with governments, partners, local communities
and other stakeholders on significant freshwater resource
issues in areas where we operate.
Build partnerships and participate in industry initiatives to
Year 2011 2012 2013 2014 2015
share and promote best practices, assist with the develop-
Total 93 88 93 85 78
ment of industry standards, and shape and influence
relevant freshwater resource policy.

We have continued to look for accurate ways of measuring


our performance against these commitments. Over the
past five years, we have incorporated water-related metrics,
including collecting data on the amounts of fresh and
nonfresh water withdrawn from the environment and the
amount of fresh water returned to freshwater sources.
In 2015, we began reporting fresh water consumed in align- water recycling in South Africa
ment with the IPIECA* Reporting Standard.
In Cape Town, South Africa, we partnered with
*The global oil and gas industry association for environmental and social issues. Improchem on a water-recycling project
that has reduced the amount of water withdrawn
each day by our Cape Town Refinery by approximately
75 percent. This reduction made water available
beneficial reuse for an additional 6,000 homes in Western Cape Province.
Our refinery achieved this reduction by building
We responsibly manage our water resources by reusing a reverse osmosis plant that purifies treated wastewater
water that is available to us. Our upstream operations reuse from the Potsdam Wastewater Treatment Works
approximately 75 percent of the water that is brought to the to nearly drinking water quality. This purified
surface when extracting oil and gas. One example of how we water is subsequently reused onsite at our refinery.
reuse this water is by heating and reinjecting it into another
well to aid in our production processes, rather than using
fresh water. In addition, most of our refineries around the
world reuse treated wastewater at their locations. By reusing
water, we reduce the amount of fresh water we withdraw Please refer to page 24 for an in-depth look at
from the environment. our water performance data.

chevron.com/cr
19
partnership

creating
prosperity
through decades of experience, we have
learned that our business success is deeply linked
to societys progress and prosperity

learn morechevron.com/creatingprosperity

$54B
in total goods and
services globally in 2015
In the United States, we spent nearly
$800 million with woman- and minority-owned
businesses and more than $2 billion
on goods and services from small businesses.
See page 25 for an in-depth look at
our goods and services spend.

Above: Contract workers at Nigerdock Fabrication Yard, an


indigenous subcontractor to Hyundai Heavy Industries, hired by
Chevron Nigeria Limited to fabricate more than 7,000 tons
of steel for the Meren gas gathering compression platform and
Sonam Field Development Project.

chevron.com/cr
20
We invest significantly in major projects and local goods and
services, create jobs, and generate revenues for local communities.
Beyond our direct business investments and taxes, we make
strategic social investments in three core areas: health, education
and economic development.

building local capacity local economic impact


Chevron has an unwavering commitment to being a good Chevron partners with independent research and analysis
partner, which extends to our supply chain. We are focused firms to quantify the economic contributions associated
on building productive and lasting relationships with local with our operations. These studies evaluate Chevrons direct
suppliers that provide goods and services for our major and indirect spending throughout our supply chain and
capital projects and ongoing operations. We use custom- demonstrate the positive impact on local employment and
ized approaches to develop national and local content economies, which improves livelihoods.
through collaborative partnerships with national and local
governments, national oil companies, nongovernmental
organizations (NGOs), and development agencies. Together,
we identify high-impact, sustainable supplier and workforce
development opportunities within our own and also our
contractors supply chains.

Once local companies are identified, we design and imple-


ment programs to help them meet industry standards and
provide goods and services to Chevron and other oil and contributions in Indonesia*
gas producers. Metrics are agreed upon with our partners From 2009 through 2013, every Chevron job
supported an average of 36 other jobs in Indonesia,
and suppliers to make sure that quality, timeliness and cost
and in 2013 alone, Chevron supported more
objectives are achieved. than 260,000 jobs across a broad range of industries.
Also in 2013, our operations contributed more
than $11.9 billion (Rp120 trillion) to Indonesias
economy, accounting for 1.4 percent of the countrys
gross domestic product (GDP).

partnership in Kazakhstan
In Kazakhstan, where Chevron has a 50 percent interest in
the Tengizchevroil (TCO) joint venture, the countrys
largest private oil producer, we work with local
companies to improve their ability to qualify as a TCO
supplier. For example, TCO has worked extensively benefits in Australia*
with MontazhSpetsStroy JSC (MSS), a 100 percent Chevrons development of the Gorgon and
Kazakhstani-owned and -operated engineering, Wheatstone natural gas projects, together with other
procurement and construction company, to upgrade the activities in Australia, are delivering significant
firms health, environment and safety practices to direct and indirect economic benefits to the Australian
meet TCOs standards. As a result of that effort, MSS economy. From 2009 through 2014, nearly
recently won a second contract with TCO and is on track to 19,000 workers were directly employed, and close to
further build its safety capabilities and skills. In 2015, 1,000 contracts were awarded to Australian
TCO spent $2.4 billion on goods and services that qualify companies. Over the period of 2009 through 2040,
as local content, which represents 51 percent of more than AU$1 trillion is expected to be added
TCOs total goods and services spend in Kazakhstan. to Australias GDPnearly AU$32 billion per year.

*Results
* for Indonesia are based on a 2014 study commissioned by Chevron and conducted by the Institute for Economic and Social Research, the University of Indonesia,
and the research firm IHS. Results for Australia are based on a 2015 study commissioned by Chevron and conducted by ACIL Allen Consulting. The economic forecast is
based on an indicative estimate for the period of 2009 through 2040 as of January 2015.

chevron.com/cr
21
social investment
Our large-scale social investments focus on education,
health and improving access to economic development
opportunities in the areas where we operate. These
investments aim to foster economic stability and improve
the quality of life in the communities where we work.

Education
We champion science, technology, engineering and math
(STEM) education and help provide career and technical

$233 million+ training that can lead directly to well-paying jobs. Through
our programs and strategic partnerships, we help both

in global social students and teachers get the tools and resources they need
for success. For example, we partner with the California
investments in 2015 State University system and support its STEM Teacher and
Researcher (STAR) Program. The STAR Program engages
aspiring and early-career teachers in cutting-edge research
projects, primarily at national laboratories, and helps them
translate their research experience into classroom practice.

Health
Chevron invests in programs aimed at improving access
to health care. Working with partners, we support initiatives
that build local capacity and deliver real and lasting gains
in the fight against devastating diseases. 2015 marked the
third year of Chevrons partnership with the international
NGO Pact to help prevent mother-to-child transmission of
HIV/AIDS in Bayelsa State, Nigeria. At the end of three years,
the project has achieved impressive results by helping to
educate close to 300,000 people about HIV prevention and
testing more than 53,000 pregnant women for HIV.

Economic development
We make social investments in programs that promote self-
sufficiency, job growth and economic development. We start
by working closely with communities and our partners to
assess local needs, and we then take action to help remove
barriers to economic growth.

chevron humankind
Chevron Humankind is a giving
and volunteer program that supports U.S.
employees and retirees in their efforts
to help the causes they care about. In 2015,

Above: Teachers participate in a training-of-trainers event in


15,500+
preparation for the launch of an extracurricular life-skills program employees and retirees contributed
for youth in Atyrau, Kazakhstan, as part of the Atyrau Youth
Development Initiative.
329,000+
volunteer hours to
Facing page: Students at a Chevron Enjoy Science Project family 2,500+
camp in Bangkok, Thailand, experience the connection between charitable organizations in
science and everyday life through hands-on activities related the United States. In addition,
to science, technology, engineering and math.
$20 million+
was contributed by Chevron employees
and retirees to U.S. nonprofits,
which Chevron matched, for
a total of $41 million

chevron.com/cr
22
Global partnership initiatives
We work with local governments, NGOs and community
leaders to create long-term programs that address critical
education, health and economic development needs in
communities across the globe. These programs strengthen
local economies by providing microloan services, enterprise
and workforce development training, and resources and
tools to improve health services and education. By leverag-
ing our partners resources and expertise, we can help drive
scalable and sustainable impact in these communities.

united nations
Thailand partnership initiative sustainable
In 2015, Chevron Thailand announced a $30 million
commitment to create the Thailand Partnership Initiative
development goals
(TPI), known locally as the Chevron Enjoy Science
Project, a five-year program to strengthen Thailands In September 2015, the United Nations General
competitiveness by improving STEM
and vocational education across the country.
Assembly adopted 17 Sustainable Development
Goals (SDGs), which will frame countries
Over the next five years, the TPI will work in partnership development agendas through 2030. Governments
with leading NGOs, academia, key government
organizations in science and education, and the private
around the world are preparing to implement
sector to increase the quality of science and the SDGs, and business will play a role in the
math teaching in Thailand, establish 18 training hubs achievement of the goals. Chevron demonstrates
nationwide, and promote the study of its commitment to sustainable development
science, technology, engineering and math.
by safely and reliably producing and delivering
affordable energy, protecting people and the
environment, and investing in communities health,
education and economic development. Many of
our business and corporate responsibility activities
support the SDGs, particularly the following:

Goal 3: Ensure healthy lives and promote


well-being for all at all ages.
community engagement in Nigeria Goal 4: Ensure inclusive and equitable quality
In 2005, Chevron and joint venture partner the education and promote lifelong learning
Nigerian National Petroleum Corporation
opportunities for all.
(NNPC) pioneered the global memorandum of
understanding (GMoU) as a new approach Goal 7: Ensure access to affordable, reliable,
to community engagement in the Niger Delta.
sustainable and modern energy for all.
Designed to create participatory development
processes that manage conflict and address community Goal 8: Promote sustained, inclusive and
needs near Chevrons areas of operations, the sustainable economic growth, full and productive
GMoU has empowered more than 500,000 people employment, and decent work for all.
across 400 communities. In collaboration with
NGOs and state and local governments, eight Regional Goal 15: Protect, restore and promote sustainable
Development Committees were created to represent
use of terrestrial ecosystems, sustainably manage
communities interests across five states.
forests, combat desertification, halt and reverse
Over the past 10 years, the NNPC/Chevron land degradation, and halt biodiversity loss.
joint venture has spent more than $100 million on
roughly 600 development projects and Goal 17: Strengthen means of implementation
programs in health, education, economic development and revitalize the global partnership for sustain-
and local capacity building. These activities
focus on education (40,000 scholarships), agriculture, able development.
medical facilities and supplies, schools, water,
housing, bridges, jetties, drains, and roads.

chevron.com/cr
23
performance data

These tables include our quantitative


environmental, safety and social performance data.
For complete reporting, including
performance data, visit chevron.com/reporting.

Environmental performance 2011 2012 2013 2014 2015

Petroleum spills to land and water (volume in barrels)2, 3 10,169 1,703 2,135 838 778

Total volume recovered 6,071 1,212 1,378 396 636

Petroleum spills to land and water (number of spills)2, 3 180 146 133 79 62

Fresh water withdrawn (million cubic meters)4 93 88 93 85 78

Fresh water consumed (million cubic meters)4 77

Nonfresh water withdrawn (million cubic meters)4 31 35 37 41 43

Average oil concentration in discharges to surface water (parts per million)5

Upstream 9 10 10 9 11
Refining and other oil and gas processing 2 4 2 1 1

Total equity greenhouse gas (GHG) emissions


60 57 57 56 57
(million metric tons of CO2-equivalent)6, 7, 8
By source:6, 7
Combustion 66.2% 67.5% 67.8% 66.5% 68.0%
Flaring9 16.9% 15.6% 13.2% 11.3% 11.3%
Venting9 4.7% 3.9% 4.2% 4.7% 4.1%
Other 12.2% 13.0% 14.8% 17.5% 16.6%
By sector:6, 7
Upstream 56.7% 58.0% 57.4% 56.5% 56.4%
Downstream and chemicals 38.5% 37.7% 38.4% 39.3% 39.8%
Midstream and other 4.8% 4.3% 4.2% 4.2% 3.8%

Direct (Scope 1) equity GHG emissions


62 58 57 56 58
(million metric tons of CO2-equivalent)6, 7

Indirect (Scope 2) equity GHG emissions


4 5 5 4 4
(million metric tons of CO2-equivalent)6, 7

Equity methane (CH4) emissions


5 4 5 5 4
(million metric tons of CO2-equivalent)6, 7

GHG emissions from third-party use of our products


396 364 363 358 366
(million metric tons of CO2)10

footnotes are on page 28 chevron.com/cr


24
Environmental performance, continued 2011 2012 2013 2014 2015

Upstream equity GHG emissions intensity (metric tons of CO2-


35 35 34 34 33
equivalent per 1,000 barrels of net oil-equivalent production)6, 7

Downstream equity GHG emissions intensity (metric tons of


37 37 39 38 37
CO2-equivalent per 1,000 barrels of crude oil refinery feed)6, 7

Total energy consumption, operated assets and nonoperated


900 870 881 879 830
joint venture refineries (trillion BTUs)
Total energy consumption for operated assets 720 690 697 702 675

Total energy consumption, operated assets and nonoperated


950 918 929 927 875
joint venture refineries (million gigajoules)
Total energy consumption for operated assets 760 728 735 741 713

Total volatile organic compounds (VOCs) emitted


276 159 147 134 142
(thousand metric tons)11
Upstream 87.8% 83.2% 84.6% 85.5% 80.5%
Refining1 4.5% 6.4% 6.1% 6.2% 9.2%
Midstream and other 7.7% 10.4% 9.3% 8.3% 10.3%

Total sulfur oxides (SOX) emitted (thousand metric tons)11 154 123 141 112 83

Upstream 80.7% 81.5% 83.7% 81.8% 62.4%


Refining1 8.7% 6.4% 6.0% 6.3% 8.8%
Midstream and other 10.6% 12.1% 10.3% 11.9% 28.8%

Total nitrogen oxides (NOX) emitted (thousand metric tons)11 133 146 147 138 149

Upstream 68.1% 76.5% 78.2% 77.8% 62.9%


Refining1 6.0% 4.7% 4.6% 5.6% 4.6%
Midstream and other 25.9% 18.8% 17.2% 16.6% 32.5%

Hazardous waste disposed of (million metric tons)12 0.5 0.5 0.8 0.8 0.3

Hazardous waste generated (million metric tons)12 1.0 0.9 0.9 1.0 0.5

Hazardous waste recycled (million metric tons)12 0.5 0.4 0.1 0.1 0.2

Number of environmental, health and safety fines paid


268 339 284 292 135
and settlements entered into13

Local content and supply chain management 2011 2012 2013 2014 2015

Total goods and services spend (billions of dollars) $41 $52 $59 $63 $54

Total goods and services spend with U.S.-based small


$2.2 $2.6 $2.8 $2.6 $2.3
businesses (billions of dollars)
Goods and services spend with U.S.-based woman- and $0.78 $0.88 $0.99 $0.96 $0.79
minority-owned small businesses (billions of dollars)

chevron.com/cr footnotes are on page 28


25
Health and safety performance 2011 2012 2013 2014 2015

Total Recordable Incident Rate (incidents per 200,000 work-hours)14

Workforce 0.24 0.24 0.21 0.18 0.18


Benchmark 0.39 0.38 0.35 0.33 N/A
Employees 0.23 0.20 0.15 0.10 0.10
Benchmark 0.33 0.31 0.29 0.28 N/A
Contractors 0.24 0.25 0.23 0.21 0.20
Benchmark 0.42 0.42 0.38 0.36 N/A

Lost-Time Incident Frequency (Days Away From Work incidents and fatalities per million work-hours)14

Workforce 0.20 0.15 0.13 0.11 0.10


Benchmark 0.43 0.41 0.38 0.36 N/A
Employees 0.31 0.13 0.14 0.06 0.09
Benchmark 0.42 0.39 0.42 0.39 N/A
Contractors 0.16 0.16 0.12 0.12 0.10
Benchmark 0.43 0.42 0.36 0.35 N/A

Days Away From Work Rate (incidents per 200,000 work-hours)14

Workforce 0.038 0.027 0.020 0.020 0.018


Benchmark 0.083 0.075 0.072 0.070 N/A
Employees 0.061 0.024 0.026 0.010 0.019
Benchmark 0.083 0.075 0.083 0.067 N/A
Contractors 0.030 0.027 0.018 0.023 0.018
Benchmark 0.082 0.074 0.067 0.077 N/A

Number of work-related fatalities

Workforce 5 8 16 3 3
Employees 1 1 2 0 0
Contractors 4 7 14 3 3

Work-related fatal accident rate (work-related employee or contractor fatalities per 100 million work-hours)14

Workforce 0.99 1.48 2.71 0.49 0.51


Benchmark 1.02 1.47 1.83 0.78 N/A
Employees 0.80 0.76 1.44 0.00 0.00
Contractors 1.05 1.71 3.11 0.64 0.67

Work-related fatal incident rate (work-related incidents with


0.40 1.11 0.85 0.49 0.51
employee or contractor fatalities per 100 million work-hours)

Motor Vehicle Crash Rate


0.07 0.07 0.04 0.04 0.02
(workforce vehicle incidents per million miles driven)15

Number of process safety Tier 1 events


90 76 38 19 29
(ANSI/API Recommended Practice 754 guidance)16
Upstream 55 58 24 15 18
Downstream and chemicals 30 15 10 3 10
Midstream 5 3 4 1 1

footnotes are on page 28 chevron.com/cr


26
Global employee diversity 2011 2012 2013 2014 2015

Number of regular employees at year-end 57,376 58,286 61,345 61,456 58,178

Number of service station employees at year-end 3,813 3,656 3,205 3,259 3,316

Number of U.S. employees at year-end 26,525 27,471 28,974 28,666 26,448

Percent U.S. employees represented by unions 11.2 10.4 10.4 9.6 10.0

Percent women in total workforce 23.4 23.8 24.3 24.7 24.3

Percent women represented at mid-level and above 12.4 12.5 13.4 14.2 14.1

Percent women and non-Caucasian men represented at


27.5 26.9 29.7 30.6 31.3
senior executive levels

Percent employees working in their home country 91 92 93

Percent workforce in North America 45.5 45.8 46.2 45.8 44.9

Percent workforce in Asia-Pacific 28.4 28.1 28.4 29.3 28.9

Percent workforce in Africa 13.8 13.5 13.1 12.8 13.2

Percent workforce in Europe/Middle East 6.3 6.4 6.4 6 7.0

Percent workforce in South America 4 4.1 3.9 3.9 3.9

U.S. equal employment opportunity


commission statistics 2011 2012 2013 2014 2015

Percent minorities among total employees 35.9 36.2 35.9 36.3 37.0

Percent women among total employees 29.3 29.7 29.3 29.7 29.9

Percent minorities among executives and senior managers 11.6 11.1 12.1 11.6 13.1

Percent minorities among first- and mid-level managers 27.7 27.9 27.4 28.6 29.5

Percent women among executives and senior managers 16.3 15.9 16.4 16.3 17.0

Percent women among first- and mid-level managers 27.4 28.1 27.5 28.8 28.3

Percent minorities among professionals (women and men) 31.8 32.3 33 33.9 34.5

Percent women among professionals 32.2 32 31.8 32.3 32.5

chevron.com/cr footnotes are on page 28


27
notes to pages 24 through 26
1 This section reflects data collected as of includes all other indirect emissions. of VOC. SOX emissions include SO2 and
April 15, 2016. Chevron reports information related to SO3, reported as SO2-equivalent. NOX
two types of Scope 3 emissions: emission emissions include NO and NO2 (reported
2 Chevron reports petroleum spills to land
credits from electricity and steam that as NO2-equivalent) and exclude N2O.
and water to conform to the 2015 IPIECA
Chevron exports to third parties and emis-
Reporting Guidance. Spills to land and 12 Corrections were made to the amounts of
sions from third-party use of our products.
water that are greater than or equal to one hazardous waste generated and disposed
barrel are included. Spills to secondary con- 7 The GHG performance data that reference of by our IndoAsia Business Unit that
tainment and chemical spills are excluded. this footnote were calculated by add- resulted in a decrease in the total hazard-
ing direct (Scope 1) emissions to indirect ous waste generated and disposed of by
3 In addition, Chevron reports spills of
(Scope 2) emissions and subtracting Chevron in 2015.
significance. For purposes of conforming
indirect (Scope 3) emissions (e.g., credits)
to the 2015 IPIECA Reporting Guidance,
To conform to the 2015 IPIECA Reporting
from electricity and steam that Chevron
Chevron defines a spill of significance as Guidance, our hazardous waste numbers
exports. Direct GHG emissions related to
a process safety Tier 1 loss-of-primary- exclude all remediation waste generated,
production of energy in the form of elec-
containment (LOPC) event (as defined by disposed of and recycled by Chevrons
tricity or steam exported or sold to a third
American National Standards Institute/ Environmental Management Company.
party have been included in the reported
American Petroleum Institute [ANSI/API]
Scope 1 emissions to conform to the
Waste amounts are quantified using
Recommended Practice [RP] 754) with
2015 IPIECA Reporting Guidance. methods required or recommended by
a consequence of a release of material
regulatory agencies or authorities where
greater than the threshold quantities
All six Kyoto GHGscarbon dioxide (CO2),
applicable. In other instances, similar
described in Table 1 of ANSI/API RP 754 in methane (CH4), nitrous oxide (N2O), sulfur
methods are used, including direct meas-
any one-hour period. Refer to footnote 16 hexafluoride, perfluorocarbons and hydro-
urement onsite or at the point of shipping,
for the definition of an LOPC event. Spills fluorocarbonsare included in Chevrons
engineering estimates, and process
to secondary containment, regardless of Scope 1 emissions. CO2, CH4 and N2O are
knowledge.
actual environmental impact, are included, accounted for in Chevrons Scope 2 emis-
as are chemical spills. sions and in Chevrons Scope 3 emissions
Chevron follows the regulatory definitions
related to the electricity and steam that of hazardous waste applicable to the juris-

In 2015, Chevron experienced 13 spills of
Chevron exports to third parties. dictions within which we operate, including
significance. Twelve of those spills ranged
de minimis specifications (below which
in size from 7 barrels to 217 barrels. The 8 In 2015, emissions were 57 million metric
hazardous waste quantities do not need to
other spill was 49,000 barrels of gasoline tons of CO2-equivalent. Chevrons chosen
be reported).
blend stock to secondary containment at base-year emissions in 2010, which account
our Pascagoula Refinery. Response actions for adjustments like acquisitions and 13 2015 environmental, health and safety fines
followed the emergency response plans divestitures, would have been 56 million paid and settlements entered into were
that are specific to the site where each metric tons. Therefore, Chevrons 2015 $3.9 million. Health and safety fines paid
spill occurred. emissions are higher than the base year. and settlements entered into accounted for
$353,820, representing 9.0 percent of the
4 Fresh water withdrawn totals decreased 9 In 2015, facilities under Chevrons opera-
total fines paid and settlements entered
in 2015 (relative to prior years) due to tional control generated an average
into. Some prior years fines paid and set-
refinements made in the data reporting. flare gas volume of 551 million standard
tlements entered into are restated in this
In 2015, Chevron began reporting fresh cubic feet per day and an average venting
report due to corrections that were made
water consumed to conform to the 2015 volume of 41 million standard cubic feet
to the reporting dates for these data.
IPIECA Reporting Guidance. Produced per day.
water is excluded from fresh water with- 14 Health and safety performance rates include
10 Chevron calculated emissions from third-
drawn, fresh water consumed and nonfresh both injury- and illness-related incidents.
party use of our products by multiplying
water withdrawn.
total 2015 upstream liquids and gas
APIs Benchmarking Survey of Occupa-
5 Oil concentration is determined by the production by emissions factors from tional Injuries, Illnesses and Fatalities
sampling of effluent streams. APIs Compendium of Greenhouse Gas in the Petroleum Industry data are used
Emissions Methodologies for the Oil and as industry benchmarks. Benchmark data

Chevron reports the total cumulative
Natural Gas Industry (2004, 2009). on competitor-average performance
amount of oil discharged to surface
for 2015 were not available at the time
water excluding spills, which are reported 11 VOC emissions increased in our refining
of publication.
separately. In 2015, Chevrons operated sector (relative to prior years), primarily
upstream facilities recorded a cumulative due to an incident that occurred at 15 Data include catastrophic and major
discharge of 1,276 metric tons of oil to our Pascagoula Refinery. This incident incidents only.
surface water, and our operated refining was counted as one of the 13 spills of
16 LOPC incidents are unplanned or uncon-
and other oil and gas processing facilities significance discussed in footnote 3.
trolled releases resulting in consequences
recorded a cumulative discharge of

SOX emissions decreased in our upstream equivalent to those specified by ANSI/
42 metric tons of oil to surface water.
sector primarily due to the shut-in of API RP 754 and International Oil & Gas
6 The World Resources Institute/World production at facilities in the Partitioned Producers (IOGP) Report 456: Process
Business Council for Sustainable Zone between Saudi Arabia and Kuwait. Safety Recommended Practice on Key
Development Greenhouse Gas Protocol: Performance Indicators.

VOC, SOX and NOX emissions increased
A Corporate Accounting and Reporting
in our midstream and other sector because
Standard defines three scopes that
we began reporting emissions from time-
Chevron uses to report GHG emissions.
chartered vessels and from shipping of
Scope 1 includes direct emissions from
liquefied natural gas.
sources within a facility. Scope 2 includes
indirect emissions from electricity and
For compiling and reporting air emissions
steam that Chevron imports. Scope 3 data, Chevron follows regulatory definitions

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28
IPIECA/API/IOGP content index

This index refers to the IPIECA/API/IOGP*


sector-specific reporting guidance for the oil and
gas industry. For 2015, Chevron reported on
all 34 indicators included in the third edition of
the guidance. An expanded IPIECA/API/IOGP
index is available at chevron.com/IPIECA.

Topic IPIECA/API/IOGP Page/s Website

Reporting overview

A message from our chairman and CEO 1


Issue prioritization process 3 chevron.com/reporting
Performance data 2428
Assurance statement and About this report 30, 32

Health and safety issues and indicators

Safety management 89 chevron.com/OE


Workforce protection HS1HS2HS3 1011, 26 chevron.com/healthsafety
Product health, safety and environmental risks HS4 chevron.com/healthsafety
Process safety and asset integrity HS5 9, 11, 26 chevron.com/healthsafety

Environmental issues and indicators

Environmental management 89, 1415 chevron.com/OE


chevron.com/environment
Climate change and energy E1E2E3E4 1617, 2425, 28 chevron.com/climatechange
Biodiversity and ecosystem services E5 chevron.com/biodiversity
Water E6E7 1819, 24, 28 chevron.com/water
Local environmental impacts E8E9E10E11 2425, 28 chevron.com/environment
chevron.com/EMC

Social issues and indicators

Community and society SE1SE4 2023 chevron.com/creatingprosperity


Human rights SE2SE3SE8SE9SE10 67 chevron.com/humanrights
Local content SE5SE6SE7 2021, 25 chevron.com/creatingprosperity
Business ethics and transparency SE11SE12SE13SE14 45 chevron.com/ethicsgovernance
Labor practices SE15SE16SE17SE18 5 chevron.com/diversity
chevron.com/BCEC

*IPIECA (the global oil and gas industry association for environmental and social issues)/American Petroleum Institute/International Association of Oil & Gas Producers.

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29
LRQA Assurance Statement
Relating to Chevron Corporations Corporate
Responsibility Report for the Calendar Year 2015

This Assurance Statement has been prepared for Chevron U.S.A. Inc. in Reviewing Chevrons documented reporting requirements to validate
accordance with our contract, but is intended for the readers of this Report. consistency of scope, definition and reporting requirements for each of
the HES performance indicators.
Terms of Engagement
Reviewing Chevrons primary data collection tools to assess use in the
Lloyds Register Quality Assurance Inc. (LRQA) was commissioned by
reporting processes.
Chevron U.S.A. Inc. on behalf of Chevron Corporation (Chevron) to provide
independent assurance on its processes used in the creation of the Evaluating consistency with the IPIECA/API/IOGP Oil and gas industry
Corporate Responsibility Report (CRR) for calendar year 2015 to a reason- guidance on voluntary sustainability reporting (2015).
able level using LRQAs verification approach.
Observations
Our assurance engagement covered Chevrons operations and activities Further observations and findings, made during the assurance engagement,
worldwide and specifically covered the following requirements: are as follows:
Reviewing the effectiveness of the processes for reporting health, Processes were in place to ensure that sites contributing to HES metrics
environmental and safety (HES) IPIECA performance indicators. understood corporate reporting procedures and requirements.
Confirming consistency with the IPIECA/API/IOGP Oil and gas industry Methods used for calculating each HES performance metric were clearly
guidance on voluntary sustainability reporting (2015) industry guidelines. defined and communicated.
Our assurance engagement did not include verifying the accuracy of data Chevrons reporting requirements for HES metrics were understood
and information reported in the CRR. and carried out. Data collected at the site/local and business-unit levels
LRQAs responsibility is only to Chevron. LRQA disclaims any liability were checked and aggregated into corporationwide metrics.
or responsibility to others, as explained in the end footnote. Chevrons Responsibility for annually reviewing and updating reporting guidelines
management was responsible for preparing the CRR and for maintaining was clear, with improvement in methodology regularly undertaken.
effective internal controls over the reporting processes and the CRR. LRQAs
responsibility was to carry out an assurance engagement on the reporting Chevron conducted a more in-depth issue prioritization review that
processes in accordance with our contract with Chevron. Ultimately, the CRR included both internal and external stakeholder comments to Chevron.
has been approved by, and remains the responsibility of, Chevron.
Recommendations
LRQAs Opinion Additional areas for improvement were provided in a separate report to
Based on LRQAs approach, we believe that Chevrons reporting processes Chevron Management. These recommendations do not affect our opinion.
were effective in delivering HES indicators that are useful for assessing
LRQAs Competence and Independence
corporate performance and reporting information consistent with common
LRQA ensures the selection of appropriately qualified individuals based on
reporting elements in the IPIECA/API/IOGP Oil and gas industry guidance
their qualifications, training and experience. The outcome of all verification
on voluntary sustainability reporting (2015).
and certification assessments is then internally reviewed by senior manage-
The opinion expressed is formed on the basis of a reasonable level of ment to ensure that the approach applied is rigorous and transparent.
assurance and at the materiality of the professional judgment of the Verifier.
LRQA is Chevrons certification body for ISO 9001, TS 16949 and Emission
LRQAs Approach Trading Schemes (ISO 14064). The certification assessments and verification
LRQAs assurance engagement was carried out in accordance with our are the only work undertaken by LRQA for Chevron and as such do not
verification procedure;* the following tasks, though, were undertaken as part compromise our independence or impartiality.
of the evidence-gathering process for this assurance engagement:
Visiting Chevron Corporation in San Ramon, California, to review data
collection and checking processes.
Conducting remote reviews of Chevron upstream and Chevron
downstream and chemicals to assess business-unit understanding and
implementation of Chevrons HES reporting requirements.
Andrea M. Bockrath
Visiting two Chevron upstream operations, in Nigeria and the San Joaquin LRQA Lead Verifier
Valley Business Unit in the United States, and one Chevron downstream On behalf of Lloyds Register Quality Assurance, Inc.
facility, the Pascagoula (MS) Refinery, to assess local understanding and April 14, 2016
implementation of Chevrons HES reporting requirements.
LRQA Reference: UQA4000679
Interviewing key personnel, including key persons responsible for
*LRQAs verification procedure is based on current best practice and uses
drafting the CRR, to identify and gain an understanding of Chevrons the principles of AA1000AS (2008)Inclusivity, Materiality, Responsiveness
reporting requirements. and Reliability of performance data and processes defined in ISAE 3000.


Lloyd's Register Group Limited, its affiliates and subsidiaries, including Lloyds Register Quality Assurance Limited (LRQA), and their respective
officers, employees or agents are, individually and collectively, referred to in this clause as Lloyd's Register. Lloyd's Register assumes no respon-
sibility 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 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.

The English version of this Assurance Statement is the only valid version. Lloyds Register Group Limited assumes no responsibility for versions translated into other languages.
This Assurance Statement is only valid when published with the Report to which it refers. It may only be reproduced in its entirety.
Copyright Lloyd's Register Quality Assurance Limited, 2016. A member of the Lloyds Register Group.

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30
2015 corporate responsibility
reporting glossary
APIAmerican Petroleum Institute. ESHIAChevrons Environmental, Social OHSAS 18001:2007An international
and Health Impact Assessment is a process Occupational Health and Safety Assessment
BiodiversityRefers to the diversity of designed to logically and consistently iden- Series management system specification.
life on the planet. It encompasses genera, tify potentially significant project-related
species, habitats and ecosystems and environmental, social and health impacts. Operational Excellence Management
the processes that support them. System (OEMS)Chevrons standard
Flaring and ventingThe burning or release approach to systematic management of
BiofuelAny fuel that is derived from of natural gas that is often produced in safety, health, the environment, reliability
biomassrecently living organisms or their association with crude oil, a process that and efficiency in order to achieve world-
metabolic byproductsfrom sources such typically occurs when there is no market or class performance.
as farming, forestry, and biodegradable onsite use for the gas.
industrial and municipal waste. Renewable energyEnergy resources
Geothermal energyA renewable source that are not depleted when consumed or
Capacity buildingA key area of focus for of energy that uses the heat energy of the converted into other forms of energy
Chevrons social investment efforts, which earth for heating or to create electricity. (for example, solar, geothermal, ocean and
means targeting support toward programs tide, wind, hydroelectric, and biofuels).
that help individuals and institutions Globally Harmonized System of
develop the skills, capabilities and expertise Classification and Labelling of Chemicals Revenue transparencyRefers to the
they need to succeed. (GHS)A system for standardizing and practice of disclosing certain financial
harmonizing the classification and labeling arrangements related to energy
Center for Chemical Process SafetyA non- of chemicals. industry operations by industry and
profit corporate membership organization host governments.
within the American Institute of Chemical Greenhouse gases (GHGs)Gases that trap
Engineers that identifies and addresses heat in the atmosphere; such gases include Social investmentThe resources Chevron
process safety needs within the chemical, water vapor, ozone, carbon dioxide, meth- provides with the objectives of benefiting
pharmaceutical and petroleum industries. ane, nitrous oxides, hydrofluorocarbons, our external stakeholders and of building
perfluorocarbons and sulfur hexafluoride. and maintaining relationships to support
The Chevron WayExplains our values: our business.
who we are, what we do, what we believe IOGPInternational Association of Oil &
and what we plan to accomplish. Gas Producers. StakeholderAt Chevron, defined as
those who affect, are affected by or have
Corporate responsibilityPutting The IPIECAThe global oil and gas industry a legitimate interest in our Companys
Chevron Way values into action across envi- association for environmental and social performance.
ronmental, social and governance issues issues.
and priorities. UpstreamThe industry term for operations
ISO 14001:2004Environmental related to exploring for, developing and
DownstreamThe industry term for management system standard developed producing crude oil and natural gas; for
operations related to refining crude oil by the International Organization for marketing natural gas; and for transporting
into finished petroleum products and for Standardization. crude oil, natural gas and petroleum
marketing crude oil and the many products products by pipeline and marine vessel.
derived from petroleum. Nongovernmental organization (NGO)
An organization that is independent from
Energy efficiencyUsing less energy to government, generally a nonprofit organi-
provide the same service. zation devoted to advancing or providing
assistance to a particular cause or issue.

partner
In Chevrons corporate responsibility reporting, partner is used in its broad sense
to mean a person or organization associated with another in a common activity or
one in which they share a mutual interest. It does not imply a member of a contractual
partnership in which the partners jointly own and carry on a business and proportion-
ally share in liabilities, profits or losses of the business.

Right: Chevrons partnership with Pact and the PROMOT Project in Bayelsa State, Nigeria,
has established a sustainable, community-based and government-supported outreach
program to help prevent mother-to-child transmission of HIV/AIDS. Learn more about our
health partnerships at chevron.com/health.

chevron.com/cr
31
about this report

This report covers 2015 data and activities. We also


occasionally mention activities that took place before
2015 and in early 2016 when they help provide a
clearer picture of our performance. This report covers
our owned and our operated businesses and does not
address the performance of our suppliers, contractors
and partners unless otherwise noted. All financial
information is presented in U.S. dollars unless otherwise
noted. Our previous report was published in May 2015
and covers 2014 data and activities.
our complete reporting
We continue to be informed by reporting frameworks
and guidelines that include the Oil and gas industry
on environmental,
guidance on voluntary sustainability reporting, third social and governance
edition, published in 2015 by IPIECA (the global oil and
gas industry association for environmental and social indicators can be found at
issues), the American Petroleum Institute (API), and the
International Association of Oil & Gas Producers (IOGP).
chevron.com/reporting
An index to help readers find information corresponding
to IPIECA/API/IOGP indicators can be found on page 29
of this report and at chevron.com/IPIECA.

This report, previous editions of our report and addi-


tional information can be found at chevron.com/cr.
cautionary statement relevant to
We welcome your comments and feedback.
forward-looking information

Dr. Marcy McCullaugh and This Corporate Responsibility Report by Chevron


Ms. Patricia Allison Corporation contains forward-looking statements relat-
ing to the manner in which Chevron intends to conduct
Chevron Corporation
certain of its activities, based on managements current
6001 Bollinger Canyon Road plans and expectations. These statements are not
Building G promises or guarantees of future conduct or policy and
San Ramon, CA 94583 are subject to a variety of uncertainties and other factors,
many of which are beyond our control.

Therefore, the actual conduct of our activities, including


the development, implementation or continuation of any
program, policy or initiative discussed or forecast in this
report, may differ materially in the future. The statements
of intention in this report speak only as of the date of
this report. Chevron undertakes no obligation to publicly
update any statements in this report.

As used in this report, the term Chevron and such


terms as the Company, the corporation, their, our,
its, we and us may refer to one or more of Chevrons
consolidated subsidiaries or affiliates or to all of them
taken as a whole. All these terms are used for conven-
ience only and are not intended as a precise description
of any of the separate entities, each of which manages
its own affairs.

chevron.com/cr
32
awards and recognition
corporate responsibility
American Fuel & Petrochemical Manufacturers Distinguished Safety Award
Platinum, Chevron El Segundo (CA) Refinery, 2015
Corporate Responsibility Magazine 100 Best Corporate Citizens
Dow Jones Sustainability Index North America
Louisiana Wildlife Federation Business Conservationist of the Year Award
Newsweek Green Rankings
S&P 500 Climate Disclosure Leadership Index
Society for International Development Leadership in Development

workforce
No. 1, Business Insider 25 Best Energy Companies to Work For in America
Catalyst Award 2015
The Economist Global Diversity List Top 10 LGBT Employee Networks
Glassdoor Best Places to Work 2016
Human Rights Campaign Corporate Equality Index 100 Percent 2015

select memberships and associations

American Bar Associations Center for Human Rights Project


on Business & Human Rights
American Fuel & Petrochemical Manufacturers
American Petroleum Institute
Business for Social Responsibility
Business Roundtable
Center for Strategic and International Studies
Center for Sustainable Shale Development
Extractive Industries Transparency Initiative
International Association of Oil & Gas Producers
International Bar Association Corporate Social Responsibility Committee
IPIECA, the global oil and gas industry association for
environmental and social issues
National Association of Manufacturers
United States Chamber of Commerce
Voluntary Principles on Security and Human Rights
Western States Petroleum Association

Editor and writer Marcy McCullaughProduction manager Patricia Allison


Photography advisors Catherine Ronan and Mollie CorcoranCopy editor Joan D. Saunders

Photo credits Cover: Edgar Trujillo, 1: Eric Myer, 2: Izturgan Aldauev, 6: Jenny Owens, 8 and 18: Marc Marriott, 10: Denis Forkin, 13: Tina Toriello,
14: Aji Wihardandi, 20: Olufemi Olukaydae, 22: Erzhan Nurpeisov, 23: Thachchawech Maneewong, 31: courtesy of Pact
learn morechevron.com/publications

2015 2015 2015


annual report supplement to the corporate responsibility
report highlights
annual report

2015 Annual Report 2015 Supplement to the Annual Report 2015 Corporate Responsibility Report

chevron.com/reporting
Scan this QR code with your smartphone to access Chevrons
2015 Corporate Responsibility Report and performance information.
QR readers are available from your phones app store.

This report is printed on Forest Stewardship Councilcertified


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 companys energy demands by 30 percent.
Design: Sequel, New York

Chevron Corporation
6001 Bollinger Canyon Road, San Ramon, CA 94583-2324 USA
www.chevron.com

2016 Chevron Corporation. All Rights Reserved. 913-0386M (5-16) (5M)

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