Results the Right Way
The world is changing, but our values are not.
Around the globe, economies are searching for solid ground, and people are reevaluating their faith in institutions. Against these currents, The Chevron Way is our anchor. Through good times and bad, The Chevron Way principles guide what we do and how we do it. Ask one of our nearly 62,000 employees to summarize The Chevron Way in a sentence, and he or she will likely say, "It's about getting results the right way."
Principles are put to the test in tough times. As the economic downturn grips communities where we operate, we will be steadfast. We plan to continue investing in those communities to help create jobs, support local suppliers and strengthen economies — all things the world needs now.
We make these community investments through partnerships — one of our core strengths. Our partnerships bring together business, community groups, government and nongovernmental organizations with one common goal: to produce sustainable results. To fund these partnerships, we increased our community investments in 2008 and plan on sustaining that level in 2009.
We focus our community partnerships in three areas because we believe these are the most likely avenues for creating lasting benefits. These areas are basic human needs, education and economic development.
Examples are many — here are some of our proudest.
- Global Fund: We're the first Corporate Champion of The Global Fund to Fight AIDS, Tuberculosis and Malaria — a public-private partnership created by the United Nations to eradicate these diseases. Our $30 million commitment funds programs in six countries beleaguered by these diseases, and our more than 700 health care staff support in-country implementation.
- Education: Since 2003, we have partnered with the Discovery Channel Global Education Partnership to support 55 Learning Centers in Angola, Venezuela, South Africa and Nigeria. In Indonesia last year, we opened a polytechnic institute in tsunami-ravaged Banda Aceh through our partnership with government, nongovernmental organizations and the United States Agency for International Development. Along with our Riau polytechnic, which we opened in 2001, these institutes provide job training and livelihoods to thousands.
- NovoBanco: In 2004, Chevron and partners launched this microlending bank to spur entrepreneurship among Angola's low-income households. The bank has been extremely successful: it has expanded to three branches, with plans for 11 more; serves more than 31,000 customers; and, last year, made more than $10 million in loans.
Inside Chevron, getting results the right way means never sacrificing safety. To reach our aspiration of zero accidents, we're creating a behavior-based safety culture that's crowned by this tenet: when a behavior looks unsafe, employees and contractors alike know they have stop-work authority. This basic tenet helped make 2008 the safest year in our history and one of the best in our industry.
Getting results the right way also means responding to other challenges — from natural disasters, to economic and social instability, to global climate change.
Responding to climate change is a long-term process. Seven years ago, we implemented our comprehensive Action Plan on Climate Change, which focuses on reducing emissions, improving efficiency, investing in research, pursuing business opportunities, and promoting flexible and economically sound policies that protect the environment. As part of the action plan, we set annual greenhouse gas emissions goals. I am pleased to report we have met those goals every year since 2004.
I'm also pleased that we're ranked No. 1 among U.S.-based oil and gas companies, and No. 2 worldwide, in the 2008 Carbon Disclosure Leadership Index. Compiled by the Carbon Disclosure Project, the index highlights companies taking "best in class" actions to measure and report carbon emissions. It is the third time in four years that we have been included.
These are priorities we work on every day. At the same time, we keep our eyes on the horizon. That's where long-term needs reside. That's where growth will take hold. And when it does, the world will need all the energy it can get.
Finding and producing that energy requires large capital investments. Most of our 2009 capital budget of $22.8 billion — equal to what we spent in 2008 — funds the development of large energy projects. These projects are designed to increase energy supplies, efficiency and reliability for decades to come.
That's money well spent, because energy is a prerequisite for economic growth. By investing in future supplies, we're investing in future prosperity.
This year, Chevron celebrates its 130th year in operation. That's a rare achievement. It has been accomplished by generations of Chevron people, focusing their considerable talents as much on skilled performance as on sustained partnership.
That's 130 years of getting results the right way.
Dave O'Reilly
May 2009