Working Safely Every Day

Employee health and safety lie at the foundation of our efforts to build a talented, dynamic workforce. A fully productive employee must be safe and secure first. The health and safety of our employees and contractors hold critical value for our business. We are investing in this "human energy" resource through our continuing efforts to make processes safer and provide all workers with the tools and information they need to do their jobs right every time. Over the past 10 years, Chevron's efforts to create a safety culture show strong continued improvement. For the seventh consecutive year, we improved our Days Away From Work Rate, which makes Chevron one of the safest energy companies in our peer group. We are now four times safer as a company than we were in 2003. Our Pascagoula, Mississippi, refinery and our Australasia and Europe business units recorded no Days Away From Work injuries in 2008, a period covering more than 20 million hours without a recordable incident.

Through our Operational Excellence Management System, we continue to improve our formal processes and structures that support safe operations, not just for our nearly 62,000 direct employees but also for the almost 200,000 contractors who work at Chevron sites on any given day. We strengthened our Incident Investigation and Learning program, for example, by adding a focus on high-learning-value events. A team examines all recent major incidents regularly throughout the year. If identified as a high-learning-value event, the incident is analyzed for root causes and the results are communicated throughout the organization.

We continued to focus on improving Process Safety Management at our facilities during 2008. We collected data on Loss of Containment, a new metric that will help us improve our performance. We also continued in-depth analysis of major incidents to determine the root causes, communicate the lessons learned and identify recommended actions. As a result of these studies, we are emphasizing operational discipline to ensure we have the systems, processes and behaviors aligned so that every member of the workforce carries out every task the right way, every time. In this program, the responsibilities of management and workers are clarified and reinforced.

If a worker feels that he or she does not have the tools or knowledge to do the job safely, then the worker is required to stop work, consult with the supervisor and fix the deviation. Management is responsible for enabling and empowering every employee to develop his or her own operational discipline. We developed communication tools for spreading this message throughout the corporation, ranging from "safety moments" to in-depth workshops. While locations can customize the tools to fit their own needs, a key goal is to promote safety in our processes by standardizing the way a process is conducted, whether the operation occurs in Angola, Brazil, Kazakhstan or the United States.

In 2008, we achieved record safety results for the year, with a Days Away From Work Rate of 0.05, a fivefold improvement over the 0.25 rate in 2002.

Establishing Common Safety Practices Among Chevron Staff and Contractors

Chevron Downstream established a common safety system across all sites, the Loss Prevention SystemTM. It emphasizes the need for each employee to assess risks before doing a task by asking a simple question: What's the worst thing that could happen to me in this situation? Employees should then make sure they have the right tools and knowledge to prevent any unacceptable outcomes. Workers are empowered to stop what they're doing if their self-assessment reveals that they don't have proper safety equipment or if they are not sure of the risks inherent in the task. As a representative of one of our major contractors, Daniel Breaux from Atlantic Scaffolding is helping deploy the system at our Pascagoula, Mississippi, refinery.

Breaux emphasizes how valuable the system can be for a very large facility with multiple contractors onsite: "I've been at the Pascagoula Refinery for about two years. The Loss Prevention SystemTM is beneficial to everyone who works inside a refinery, not only Chevron personnel but contractors as well. It gives us the opportunity to all talk from the same page. Instead of five different companies using five different safety systems, we're all using the same tools. Once we're inside this gate, we're all in this together — I don't want to see anybody get hurt."

Our Drive to Improve Motor Vehicle Safety

Vehicle incidents are the largest cause of fatalities within the oil and gas industry. We are working to improve our workforce's awareness of road safety whether they are driving on the job or commuting.

In 2008, we completed a study of 87 major motor vehicle incidents that occurred in 2006 and 2007 across the corporation, with the goal of identifying trends and common root causes. We began communicating the findings throughout the company during the last quarter of 2008, and we are implementing updated training tools designed to address common root causes of incidents, such as excessive speeding or miscalculating situational risks. The study also identified improvements to some of our existing driver training programs and contractor performance monitoring procedures, which we are implementing as a result. Revamped training and driver monitoring activities are expected to continue during 2009.

Building Healthy Communities

Cardiovascular disease is the leading cause of death in the United States, claiming more than 600,000 lives in the country each year and millions more worldwide. The World Health Organization reports that by the year 2020, heart disease will surpass infectious disease as the world's leading cause of death and disability, posing a threat to our global workforce.

During 2008, Chevron continued to implement its new cardiovascular health program for employees. This program takes a preventive approach by giving employees the tools and incentives to understand their own risk factors for heart disease and to take steps that will improve their cardiovascular health. Employees who choose to participate in the program take an assessment asking them about their health indicators. The program then evaluates their risk factors and makes personalized recommendations on how to lower risks. It offers online self-help resources, educational materials and even a customized mentoring program with a health coach, all of which are offered free of charge.

The program was piloted in Nigeria, in the Philippines, and in the United States at the Pascagoula Refinery. Beginning in September 2008, the program was opened to all U.S.-payroll employees; it will roll out globally in 2009. Our investment in the cardiovascular health of employees, we firmly believe, will lead to increased productivity, reduced lost-work time and more motivated employees.

In some areas where Chevron employees and families live, medical services are severely lacking. We have an opportunity to improve community health significantly in those operating locations. Improving the health status of the whole community has direct, positive effects on our workers and their families as well as on our potential future workforce.

Our approach to community health continues to evolve and take advantage of synergies between many existing programs. This year, a major focus is on developing a holistic approach that responds to community needs. We are looking to bring efforts in HIV/AIDS, malaria and tuberculosis together in a coordinated way that addresses local needs and includes environmental, social and economic aspects.

For instance, around our Nigerian operations, we have conducted HIV/AIDS awareness, prevention and treatment activities since 2001 and, in some locations, supported anti-malaria efforts through community medical clinics. During 2008, we worked with partners in the Corporate Alliance on Malaria in Africa to develop a strategic business plan based on a vision of integrated support for sustainable community health. We plan to leverage our involvement in the country coordinating mechanisms — steering committees for each country where The Global Fund to Fight AIDS, Tuberculosis and Malaria is active — to test the feasibility and effectiveness of this integrated community health approach. Chevron has already been invited to participate in the coordinating mechanisms for Nigeria.

Updated: May 2009

Operational Excellence

Operational Excellence

Chevron's Operational Excellence Management System helps us achieve world-class performance.

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