Stakeholder Engagement

Planting mangroves, Songkhla Lake, Thailand

At Chevron, we understand that the most important challenges facing the global community today are complex and that the best hope of finding lasting solutions is through dialogue, collaboration and partnership. When these challenges touch our business, we act to share our insights based on decades of on-the-ground experience, and we openly inform our stakeholders of our views and the actions we are taking to address these challenges.

We value outreach and dialogue as a means to understanding stakeholder views and concerns, gain insight into emerging trends, improve our policies and processes, and foster collaborative relationships on issues of mutual concern. In 2008, we increased and deepened our engagement with a wide range of stakeholders on socioeconomic and environmental issues. We intend to increase the regularity of stakeholder engagement activities and further formalize our feedback efforts during 2009.

Chevron technical experts continue to participate in the processes of the Intergovernmental Panel on Climate Change, which has begun work on a two-year program to assess the status of renewable energy resources worldwide and their projected impact on global climate change. Members of our staff have also been appointed to participate on the National Academy of Sciences' steering committee and in reviews of the nation's research programs in the atmospheric sciences and climate change.

In the United States, Chevron provided expert advice to regulatory agencies to support implementation of California's Global Warming Solutions Act and the Low-Carbon Fuel Standard, as these climate change measures could have wide-ranging effects on the state's economy and businesses that contribute to economic growth. Chevron also is a member of industry coalitions and has ongoing dialogue with environmental groups in California and other jurisdictions.

In the Philippines, Chevron is a leading member of the Renewable Energy Coalition, a multisectoral partnership comprising government agencies, local and foreign companies, and nongovernmental organizations, including Greenpeace and the World Wildlife Fund. The coalition supports public policies that encourage the development of indigenous sources of energy, such as geothermal, to make the country more energy self-sufficient. Through the coalition's efforts, the Renewable Energy Bill was enacted by the president at the end of 2008. The new law will accelerate investment in and development of renewable energy resources in the Philippines.

We communicate with our stockholders through Chevron.com, reports, meetings and press releases. In 2008, we met with stockholders and investment advisory firms to discuss climate change; environmental performance; human rights; societal issues in Myanmar, Nigeria and Ecuador; and other topics. We met with investors from, among others, TIAA-CREF, F&C Asset Management plc, the California State Teachers' Retirement System and FTSE4Good Index Series, and with institutional investors from the Netherlands, Norway and Sweden.

Teacher training, United States

Chevron's Environmental, Social and Health Impact Assessment (ESHIA) establishes a process for conducting stakeholder engagement in a focused, comprehensive and participatory manner. By the end of 2008, ESHIA was being applied to more than 450 capital projects worldwide. The goal of ESHIA is to establish and maintain dialogue with stakeholders throughout the lifetime of a project, to solicit views and ideas to improve benefits or mitigate potential adverse impacts, and to consider stakeholder input in our assessments and planning.

For example, using the ESHIA process, the Angola LNG (liquefied natural gas) project engaged with stakeholders through all phases of development. Between 2004 and 2007, Angola LNG held more than 100 consultations and workshops with a wide range of stakeholders to provide project information and seek the views of community representatives on issues and potential solutions. Stakeholder meetings were held to discuss ongoing work activities, and a straightforward grievance process was implemented for people living and working in the surrounding communities. A radio program (both in Portuguese and Kisorongo, a local dialect) and an information center in Soyo facilitate ongoing communication by providing ways for people to obtain information about the Angola LNG project.

At our refinery in El Segundo, California, we created the Community Advisory Panel, which enables residents and community leaders to understand the operations of the refinery and provides a venue for citizens to share their concerns. The 15- to 20-member panel meets regularly, holding information forums led by company members or community experts on such concerns as the environment, safety and emergency preparedness. Panel members serve as refinery liaisons in their neighborhoods, sharing information with the community and advising the refinery on ways to improve communication. Our Cape Town, South Africa, and Pembroke, United Kingdom, refineries have similar groups.

Workforce development, Angola

Enterprisewide, we use a diverse range of methods to engage with employees globally, including employee networks, regular town hall meetings, email and intranet communications, and publications. Each year, we hold a global employee teleconference with our chairman and other company leaders.

In Venezuela, Chevron employees held a town hall meeting as part of an educational campaign to commemorate Global Road Safety Week. Speakers reinforced the importance of being alert and responsible while driving.

Our newest employee network, Boola Moort, represents Australia's indigenous people. The network's name, in the local Nyoongar language, means "many people." The network's vision and objectives include attracting, developing and retaining indigenous talent and supporting our Australasia business unit's constructive relationship with the indigenous communities near its operations.

In September 2008, we launched a new phase of our Human Energy^TM campaign in the United States. Called "I Will," the campaign focuses on energy conservation and efficiency. We believe the key to our energy future is to develop all forms of energy. This includes energy efficiency and conservation — the easiest, cheapest and most reliable forms of "new" energy available. Energy efficiency also helps to moderate demand for carbon-intensive fuels, reduce energy costs and preserve finite natural resources. At WillYouJoinUs.com, we invite discussion and provide practical tools to promote energy literacy and encourage action.

In early October 2008, more than 80 local and international suppliers attended a twoday forum in Atyrau, Kazakhstan, hosted by Tengizchevroil LLP, in which Chevron is a 50 percent partner, and Karachaganak Petroleum Operating B.V., in which Chevron has a 20 percent nonoperating interest. The forum was designed to develop and improve the quality of Kazakhstan’s oil and gas–related goods and services. At the forum, new suppliers met with international counterparts to learn about business opportunities, bidding and the standards that our suppliers are expected to meet. Tengizchevroil spent more than $2.5 billion on Kazakhstani goods and services in the past two years.

In 2008, Chevron Nigeria Ltd. entered a second three-year partnership with the Lagos Business School to provide courses in supply contract management that target local entrepreneurs. The program develops the skills and competencies of Nigerian contractors to enable them to capture new business opportunities.

Chevron is a partner in the America’s Energy Coast initiative, which draws on expertise from industry, environmental NGOs, academia, and policymakers to make recommendations on ensuring the sustainability of coastal communities in the Gulf Coast region. Top priorities for action include recommended policies and practices that address critical economic, social and environmental issues and promote responsible development of U.S. oil and gas energy while affording protection to this critical coastal area. For more information, visit AmericasEnergyCoast.org.

In June, we organized an external-insights meeting at Chevron's headquarters with representatives from Business for Social Responsibility, Harvard University, International Finance Corp. and other thought leaders in corporate social responsibility. The meeting provided us with a candid view of emerging social issues, trends, and drivers germane to our operations. Our leadership was informed of external trends related to corporate responsibility as well as opportunities to improve our engagement on social issues.

We worked with industry and NGO partners in the creation of an online database of biodiversity information. Launched in the fall of 2008, the Integrated Biodiversity Assessment Tool was developed to help businesses be proactive about addressing biodiversity concerns from the outset of project planning. Chevron, industry and NGO partners — including Conservation International, the U.N. Environment Programme's World Conservation Monitoring Centre, the International Union for Conservation of Nature, and BirdLife International — collaborated on developing an interface that allows seamless access to their combined data, as if the data were from a single repository. For more information, visit BiodiversityInfo.org/ibat.