powering the world forward

Chevron has emerged from the changes that have reshaped the world’s energy landscape as a stronger, leaner and more agile enterprise. Today, we stand ready to win in any business environment.

Each day, our people deliver the energy that billions around the world rely on for the most basic of human needs, along with the social and economic progress that reliable, affordable energy provides. Their commitment – along with our pursuit of technological and scientific innovations that push the frontiers of our industry – positions us well to meet the challenges of this responsibility with skill, ingenuity and an unwavering commitment to the vision, values and strategies of The Chevron Way.

CFO perspective: 2017 in review

CFO perspective: 2017 in review

Chevron Chief Financial Officer Patricia Yarrington, discusses the company’s 2017 performance.

appendix: reconciliation of non-GAAP measures
cautionary statement and legal notice

Chevron’s portfolio of assets is strong. Our Upstream business is resilient, built to deliver short-cycle, high-return projects as well as long-term resource sustainability. Our Downstream & Chemicals business is highly competitive, with a global portfolio that is strategically focused to leverage areas of strength. Our Midstream organization delivers the commercial, technical and operational expertise that enhances results in Upstream and in Downstream & Chemicals.

As the world’s population continues to grow, so, too, will global demand for energy. We are looking toward the future – working to develop generations of talent inside and outside our company; proudly and responsibly leading in conventional energy sources while exploring and evaluating new and emerging energy solutions; and leveraging technology to improve efficiency and productivity while solving the most complex energy challenges of our time. And above all, we are creating value for our stockholders, customers, partners and communities.

The right way. The responsible way. The Chevron Way.

lead director: one-on-one

Ronald D. Sugar
Lead Independent Director Ronald D. Sugar provides insight into how Chevron’s Board of Directors puts the interest of stockholders first.

Q: Tell us how Chevron’s Board sees its responsibility to represent the interests of stockholders.
A: Chevron’s stockholders are represented by accomplished, diverse and independent Directors with experience in global business, public policy, finance, technology and environmental matters. Diversity of gender, ethnicity, age, skills and experience foster different perspectives that make our Board’s oversight and decision making more effective. In addition, our Directors have the highest personal integrity and a deep interest in Chevron’s underlying business. As a Board, we hold Mike Wirth and his team accountable for running the business day-to-day, and we provide oversight on behalf of stockholders. We ensure that we have the right leadership in place and the right strategy moving forward and that we operate at a prudent level of business risk. We think independently, debate openly, but act cohesively to put the interests of our stockholders first.

Director tenure and Board diversity charts

Q: How does having Chevron’s CEO also serve as Chairman work in the best interest of stockholders?
A: Chevron’s by-laws require that our independent Directors appoint a Chairman annually. We recently completed the management succession process that selected Mike Wirth as our new CEO and then carefully deliberated on whether he or another Director should serve as Chairman. We decided that Mike should also represent the Board as Chairman, given the broad scale and sensitivity of Chevron’s interactions with governments and heads-of-state around the world. Our by-laws also call for a strong Lead Independent Director position to ensure that independent Directors exercise rigorous oversight of the management of the company. As discussed in our Proxy Statement, the Lead Independent Director is invested with considerable authority to facilitate that oversight. Mike and I speak frequently, each with a clear understanding of his own role.

Q: What role does Chevron’s Board play in oversight of strategy and managing risk?
A: Chevron is in a long-cycle, complex global business, and the Board must think about the future beyond current business conditions. It’s our job to review, test, debate and, where necessary, adjust the company’s business strategy. We examine internal and external views of energy market conditions, geopolitical developments, technology trends and competitor actions. This enables us to most effectively deploy our capital and human talent to achieve both near-term and longer-term stockholder objectives. To manage risk, Chevron’s management employs a meticulous process to regularly identify and analyze threat scenarios and deploy appropriate mitigations. The full Board then conducts a comprehensive risk review to ensure that risk management systems are employed effectively across the company.

Q: What is the role of Chevron’s Board in managing climate change risk?
A: Climate change is a growing area of interest for our investors and other stakeholders. We’re committed to addressing the risks of climate change while delivering the energy that benefits societies and economies. Chevron’s management integrates climate change considerations into its risk management, governance and business planning processes. The Board regularly assesses climate change risks and opportunities throughout the year. Climate change is also a frequent topic when management and members of the Board meet with stockholders. As a result of stockholder feedback, the Board recently endorsed a second, more detailed voluntary report on climate change related to Chevron.

Q: Does Chevron meet directly with stockholders?
A: Yes, and we have done so regularly for many years. In 2017, an engagement team of Chevron senior executives and experts on compensation, environmental, social and governance issues conducted 45 discussions with stockholders representing more than 36 percent of Chevron’s outstanding common stock. To better understand their points of view, the team also met with many of the groups who submitted proposals for our proxy. The engagement team then shared all the feedback from stockholders and proponents with the full Board. From time to time, other Directors and I also participate in such meetings. This firsthand participation has proved invaluable in bringing the voices of our owners back to our boardroom.