ESHIA
Our Environmental, Social and Health Impact Assessment (ESHIA) process, deployed as a corporate process in early 2007, requires that all new capital projects be evaluated for potential environmental, social and health impacts. ESHIA is used to anticipate and plan the manner in which significant impacts are mitigated and benefits are enhanced during the planning, construction, operation and decommissioning of a project. Stakeholder engagement is central to the ESHIA process throughout the life of a project.
By early 2008, ESHIA was being applied to nearly 20 capital projects worldwide, including the Piceance Basin project in western Colorado.
Political Contributions
Chevron has strict policies and internal approval processes to guide our decision making and reporting on political contributions that comply with the letter and spirit of all applicable laws. Contributions made by Chevron are planned, budgeted, legally reviewed and approved in advance by management, including approval by the Executive Committee.
In 2007, we made nearly $1.9 million in corporate political contributions to candidates and political organizations that support economic development, free enterprise and good governance. This total included contributions to support our views on local and state ballot measures.
Chevron employees, through the Chevron Employees Political Action Committee (CEPAC), contributed $255,000 in 2007 to the election of candidates from both parties for U.S. federal office, as well as to local and state candidates in certain U.S. jurisdictions.
By policy, CEPAC does not contribute to presidential candidates or national political parties.
A listing of federal contributions made by CEPAC during this election cycle can be viewed on the U.S. Federal Election Commission Web site. In addition, each year we post a list of our corporate political contributions made during the previous year on our external Web site.
Lobbying
Lobbying is an essential and constructive part of the political process. We lobby ethically, constructively and in a bipartisan manner through direct communication with public officials. We also encourage our employees, stockholders and others to communicate with officials where permitted by law. Chevron complies with all registration and reporting regulations related to our lobbying activities.
Engaging With Stockholders
Chevron makes available quarterly, annual and periodic reports, press releases and other information to keep current and potential stockholders informed. We meet frequently with stockholders throughout the year to discuss governance, environmental, social and policy issues. Qualifying stockholders also can submit proposals to be voted upon at our annual meetings. During the 2008 proxy season, we received 10 stockholder proposals. By late March, two were excluded because they did not meet the SEC's legal requirements for inclusion, and one was withdrawn after dialogue with the proponents. We expect the remaining proposals will be voted on at the Annual Meeting of Stockholders in May 2008.
Revenue Transparency
Chevron believes that public disclosure of payments made by extractive industries to governments and revenues received by governments could lead to improved governance in resource-rich countries. Good governance contributes to stable, long-term investment climates and the subsequent improvement of local economies and well-being of communities.
In 2007, Chevron continued to participate in the Extractive Industries Transparency Initiative (EITI). Chevron served as a board member until April 2007, at which time it began service as an alternate. The company also helped support the establishment of the EITI's Secretariat, which opened in September in Oslo, Norway.
Supporting Collaboration to Address Energy Security
Chevron supports collaborative efforts to develop solutions that will provide the energy for sustained global prosperity and growth. In 2007, our executives and other employees participated in the U.S. National Petroleum Council’s (NPC) study of global energy prospects and markets. The report, Facing the Hard Truths About Energy, included input by more than 1,000 contributors from academia, government, nongovernmental organizations and the private sector. The NPC is an advisory committee on oil and gas issues to the U.S. secretary of energy.
The report detailed several "hard truths," including the following: coal, oil and natural gas will remain indispensable to meeting projected global demand through 2030. The world is not running out of energy resources, but there are accumulating risks to continuing expansion of oil and natural gas production from historical conventional sources. To mitigate these risks, all economic energy resources — coal, nuclear, renewables and unconventional oil and gas — are needed. However, each carry challenges that include safety, environmental, political and economic hurdles. The report stated that policies to curb carbon emissions will alter the energy mix, increase energy-related costs and require reductions in demand growth.
The report recommended immediate and sustained action by policymakers due to the long lead times required to make changes. A framework of five core strategies included moderating demand by increasing energy efficiency; expanding and diversifying energy supplies; integrating energy policy into trade, economic, environmental, security and foreign policies; strengthening trade and investment; enhancing technology in all phases of the energy supply and demand system; and developing the legal and regulatory framework to capture and sequester carbon emissions. The study recognized that there is no single solution to energy security needs. For the United States, there can be no national energy security without global energy security. Instead, an integrated, collaborative and sustained approach taking action on each of these recommendations is required.
Executive Outreach
In addition to participation in the NPC study described above, during 2007 and early 2008 our senior executives appeared in numerous public forums and media events discussing energy security and policy issues. Their outreach efforts were designed to educate public, government, nongovernment and private sector stakeholders, as well as to engage in dialogue. For example, executives spoke at the Asia-Pacific Economic Cooperation’s Australia 2007 Business Summit, the World Economic Forum’s 2008 Annual Meeting in Davos, Switzerland, the Aspen Ideas Festival, Town Hall Los Angeles, and the Commonwealth Club of California.