2015 Chevron Corporate Responsibility Report
2015 Chevron Corporate Responsibility Report
2015 Chevron Corporate Responsibility Report
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
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.
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corporate responsibility at chevron
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.
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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.
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.
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
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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
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0.02
motor vehicle
crash rate*
In 2015, our workforce Motor Vehicle Crash Rate
was the lowest we have ever recorded.
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For the past 15 years, we have expanded our systems to
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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.
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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
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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.
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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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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
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Every day, our employees strive to responsibly manage
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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
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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
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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.
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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
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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.
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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.
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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.
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.
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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,
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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:
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performance data
Petroleum spills to land and water (volume in barrels)2, 3 10,169 1,703 2,135 838 778
Petroleum spills to land and water (number of spills)2, 3 180 146 133 79 62
Upstream 9 10 10 9 11
Refining and other oil and gas processing 2 4 2 1 1
Total sulfur oxides (SOX) emitted (thousand metric tons)11 154 123 141 112 83
Total nitrogen oxides (NOX) emitted (thousand metric tons)11 133 146 147 138 149
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
Local content and supply chain management 2011 2012 2013 2014 2015
Total goods and services spend (billions of dollars) $41 $52 $59 $63 $54
Lost-Time Incident Frequency (Days Away From Work incidents and fatalities per million work-hours)14
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
Number of service station employees at year-end 3,813 3,656 3,205 3,259 3,316
Percent U.S. employees represented by unions 11.2 10.4 10.4 9.6 10.0
Percent women represented at mid-level and above 12.4 12.5 13.4 14.2 14.1
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
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IPIECA/API/IOGP content index
Reporting overview
*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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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-
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Copyright Lloyd's Register Quality Assurance Limited, 2016. A member of the Lloyds Register Group.
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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.
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about this report
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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
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
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2015 Annual Report 2015 Supplement to the Annual Report 2015 Corporate Responsibility Report
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