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Priorities, Progress and Plans

Continuous Integration of Corporate Responsibility Into Our Business

What we said we would do in 2006

  • Deploy a self-assessment process that business unit leaders will use to assess their Operational Excellence Management System (OEMS) implementation against expectations, supplementing corporate reviews.
  • Make training available to business units.

What we did in 2006

  • Deployed OEMS self-assessment process.
  • Continued OEMS training and certification.
  • Established OE governance board.
  • Focused on implementing corporate responsibility (CR) through existing business processes rather than a separate program.
  • Developed Environmental, Social and Health Impact Assessment (ESHIA) process as a corporate standard for new projects.

What we plan to do next

  • Continue with OEMS implementation across the company.
  • Begin rollout of ESHIA across our global operations.
  • Continue utilizing OEMS self-assessment process.

Global Strategic Workforce Development

What we said we would do in 2006

  • Continue to develop a talent-sourcing initiative to recruit from a wider range of universities and colleges worldwide and increase hiring of experienced people.
  • Create leadership development programs throughout the company in addition to supporting existing programs.
  • Conduct a Pulse Survey with a random sample of employees worldwide to assess their level of engagement.

What we did in 2006

  • Retooled global recruitment strategy to attract additional talent, including talent from a wider range of universities and colleges worldwide.
  • Introduced new training opportunities for new and experienced employees.
  • Conducted a 2006 Pulse Survey with a random sample of 25 percent of employees.
  • Created three leadership development programs to support existing programs.

What we plan to do next

  • Increase communication on our record of responsible corporate actions and policies, together with our business strategies, in recruiting efforts.
  • Deploy leadership development programs.
  • Increase communication on our record of responsible corporate actions and policies, together with our business strategies, in recruiting efforts.

Stakeholder Engagement

What we said we would do in 2006

  • Continue regular stakeholder consultations on key issues.
  • Make stakeholder engagement guide available to business units.
  • Participate in formulating recommendations by the International Advisory Group (IAG) of the Extractive Industries Transparency Initiative (EITI) for presentation to the global EITI conference in late 2006 to promote wider acceptance of EITI among resource-rich nations.
  • Continue to improve annual corporate responsibility reporting and align publication with Annual Meeting of Stockholders.

What we did in 2006

  • Distributed stakeholder engagement guide to business units.
  • Participated in formulation of IAG recommendations for EITI.
  • Aligned publication of annual CR report with Annual Meeting of Stockholders and sought input from stakeholders and other interested persons on ways to make the 2006 report more effective.

What we plan to do next

  • Continue aligning our CR and annual reporting processes.
  • Continue engaging with stakeholders to improve our CR reporting.
  • Use ESHIA process to further strengthen stakeholder engagement.
  • Conduct stakeholder engagement training and make tools available to business units.
  • Continue posting corporate political contributions made during the previous year on www.chevron.com. [Contributions were first posted in February 2007.]

Health and Safety (including HIV/AIDS)

What we said we would do in 2006

  • Continue to focus on safety, aiming to meet short-term performance targets and the long-term goal of zero incidents.
  • Develop action plans and timelines that will focus on the HIV/AIDS-related needs of our local workforces.
  • Develop standardized training curricula for management and employees, and develop principles for offering HIV/AIDS testing and treatment to employees and their dependents.

What we did in 2006

  • Released a corporate standard process for managing risks at facilities, including health, environmental and safety risks.
  • Continued HIV/AIDS training, and sharing voluntary testing and treatment guidelines with our physicians companywide. Established a permanent office for HIV/AIDS. Published training material in 10 languages.
  • Formed public-private coalitions in four countries to improve road safety through the Arrive Alive initiative.
  • Initiated cardiovascular health care program.
  • Hosted fourth annual OE Forum for employees worldwide to share best practices.

What we plan to do next

  • Continue safety focus, aiming toward our long-term goal of zero incidents.
  • Continue companywide deployment of corporate standard process for managing risks.
  • Continue implementing global HIV/AIDS policy.
  • Collaborate with other companies to implement health initiatives, such as programs that are part of the Corporate Alliance on Malaria in Africa and the Global Business Coalition on HIV/AIDS, Tuberculosis and Malaria.
  • Continue implementing the Arrive Alive road safety initiative.
  • Host fifth annual OE Forum.

Community Engagement

What we said we would do in 2006

  • Increase the portion of our community investment targeted toward capacity building and economic development programs.
  • Continue to develop measurement tools that enable evaluation of our community engagement efforts, including engagement through the ESHIA process.
  • Continue to develop workshops and training to build the capability to effectively implement our community engagement theme.

What we did in 2006

  • Increased capacity building and economic development programs to approximately 68 percent of total investments in community engagement initiatives.
  • Developed tools for monitoring selected community engagement programs.
  • Developed a community engagement practitioners' network.
  • Continued to develop Regional Development Councils (RDCs) in Nigeria's Niger Delta in partnership with local stakeholders.
  • Continued support for communities affected by natural disasters in 2004 and 2005.

What we plan to do next

  • Increase community investment in capacity building and economic development programs.
  • Continue developing our community engagement tool kit.
  • With rollout of companywide ESHIA, continue developing tools for social impact assessments and deliver training.
  • Expand community engagement practitioners' network.
  • Continue working with RDCs to create three-year development plans.

Human Rights

What we said we would do in 2006

  • Develop practical training to support our Human Rights Statement's deployment. The training will be designed to enhance awareness of human rights and further explain Chevron's support for universal human rights.

What we did in 2006

  • Launched training program for employees to enhance their understanding of human rights in the context of Chevron's role as a member of society. More than 1,200 employees completed the training.
  • Held training workshop for our global security advisors on the Voluntary Principles on Security and Human Rights.
  • Served on the core committee of the Global Sullivan Principles.

What we plan to do next

  • Continue rollout of Chevron's Human Rights Statement, including employee training, over the next three years.

Climate Change, Renewables and Energy Efficiency

What we said we would do in 2006

  • Complete greenhouse gas (GHG) emissions forecast.
  • Begin operation of the Darajat Unit 3 geothermal project in Indonesia.
  • Continue to install energy efficiency improvements and alternative energy technologies at U.S. institutions and business through Chevron Energy Solutions Company.

What we did in 2006

  • Completed GHG emissions forecast.
  • Performed better than our GHG emissions and energy efficiency goals.
  • Formed strategic alliance with government, academic and other institutions to focus on emerging technologies.
  • Established new biofuels business unit.
  • Began working with California state officials and business community to help design the overall framework for a GHG regulatory program mandated by new GHG emissions law.

What we plan to do next

  • Continue implementing Fourfold Plan of Action on Climate Change.
  • Continue to partner in developing technologies, such as biofuels and market-based mechanisms, to reduce GHG emissions.
  • Begin operation of Darajat Unit 3 geothermal project in Indonesia.
  • Continue to work with California state officials and business community to understand technological possibilities for success and consider economic trade-offs needed to meet GHG emissions law mandates.

Environmental Management

What we said we would do in 2006

  • Continue implementation of environmental expectations through OEMS, including global collection of data on hazardous waste and oil discharges to water.
  • Develop and deploy additional standards as needed.
  • Demonstrate continual improvement in environmental performance.

What we did in 2006

  • Began collecting baseline data across all operations to track water and waste performance.
  • Issued new standards such as third-party waste stewardship and ESHIA.
  • Demonstrated continual improvement in performance.

What we plan to do next

  • Implement corporate ESHIA and third-party waste standard.
  • Continue companywide OEMS alignment with ISO 14001 and OHSAS 18001 standards.
  • Continue to compile and analyze environmental data across our operations to evaluate performance.