lobbying and trade associations

Chevron’s political activities are designed to support our ambition to deliver affordable, reliable and ever-cleaner energy. Our engagements aim to deliver insight and recommendations on policy matters important to Chevron.

Public policy decisions can have significant implications for Chevron’s current operations and our future. Accordingly, Chevron exercises its fundamental right and responsibility to participate in the political process through lobbying and political contributions. Our political activities meet ethical standards, adhere to all applicable policies, procedures and laws, and align with company interests.

Lobbying is an important way for Chevron to participate in the political process. Chevron engages in direct and indirect lobbying. Direct lobbying is conducted by our employees and contract lobbyists. Related activities that support our employees and contractors are referred to as indirect lobbying activities and include research and analysis related to issues and pending legislation. Indirect activities are performed by our employees and trade associations of which we are a member.

Chevron works with policymakers to support well-designed policies. In the U.S., Chevron engages with executive and legislative branches of federal, state, and local governments to provide perspective on energy issues affecting the United States and the world. Chevron strives to maintain positive, constructive relationships with policymakers and their staffs. Our engagements share views on issues regarding the economy, regulations, energy security, foreign policy, research and energy development.

Stakeholder Engagement and Issues Management (SEIM) is part of Chevron's Operational Excellence Management System (OEMS). In support of SEIM Chevron holds memberships in industry and other associations that provide expert perspectives on safety, business, technical and industry best practices and a broad range of issues facing policymakers and society.

Chevron works with trade associations to advocate for effective, responsible and nonpartisan standards, regulations, and energy policies. Working with industry trade associations across a spectrum of policy and non-policy issues provides our company access to a range of perspectives.

While Chevron does not control, and may not always agree with, positions taken by trade associations of which it is a member, trade associations provide a unique venue for Chevron to engage other companies and industry experts.

We rarely agree 100 percent with any trade association, but we believe our participation is important to the informed exchange of views on the issues.

We also think that the existence of differences on some issues does not necessarily eliminate the overall value of trade association membership. Chevron acknowledges that these differences can be challenging, so we endeavor to always be open in our engagements with shareholders and stakeholders about any such differences.

For example, in response to stockholder interest and at the Board's direction, we published the Climate Lobbying Report.

Chevron holds memberships in organizations made up of state legislators and stakeholders advancing model policies and legislation. Over the last decade, Chevron has contributed to the American Legislative Exchange Council and the National Conference of State Legislatures. Both organizations conduct policy research and hold information-sharing forums among stakeholders. Membership in these organizations provides Chevron with the opportunity to share our perspectives with members and obtain valuable information on issues that are important to Chevron with a variety of stakeholders.

Chevron makes corporate political contributions in the U.S. and Australia when permitted by law. We contribute to various organizations organized under sections 527, 501(c)4 and 501(c)6 of the U.S. Internal Revenue Code. Our objective is to support state and local candidates, political parties, political committees and measures that are aligned with Chevron’s business interests. This includes candidates and organizations that support:

• Responsible development of oil and natural gas resources
• Reasonable regulatory regimes
• Economic development
• Free enterprise
• Market-based solutions
• Good governance

The Chevron Employees Political Action Committee (CEPAC) is also a forum for eligible employees shareholders and retirees to voluntarily contribute funds that support the election of pro-energy candidates to Congress and to candidates in states where corporate contributions are prohibited (e.g. Texas). The above mentioned factors are also considered before CEPAC makes any political contributions.

Chevron has strict policies to help employees understand requirements for engaging with U.S. political officials. For example, company policies specify that Chevron’s Vice President of Corporate Affairs is responsible for providing an effective political engagement program that complies with all laws and regulations and internal policies, including complete and timely lobbying registration and reporting.

Both lobbying and corporate political contributions are managed internally with oversight by Chevron’s corporate compliance and internal audit teams and the Board of Directors.

Chevron provides dedicated compliance staff, legal counsel and resources to ensure compliance with all relevant laws, regulations, and company policies related to corporate lobbying activities and political contributions.

In addition, Chevron has a robust risk assessment process to ensure business unit leadership identifies, analyzes and takes steps to mitigate the risks associated with their business unit’s political engagements. The results of these assessments are then reported to Chevron leadership.

Chevron’s Public Policy and Sustainability Committee is chartered to assist the Board of Directors in overseeing – among other things – political activities and devoting appropriate attention and effective response to stockholder concerns regarding such activities. The PPSC annually reviews the policies, procedures and expenditures related to the company’s political contributions and lobbying to assess the value of these activities and ensure alignment with Chevron’s positions, interests and trade-offs. The PPSC provides guidance on Chevron’s political activities to the vice president of Corporate Affairs.

We take a number of steps to ensure transparency and accountability for our political involvement:

• We have sound policies and processes.
• The executive committee yearly reviews and endorses corporate political contributions and central budget.
• The Public Policy and Sustainability committee of our Board receives and reviews the policies, procedures and expenditures for our political contributions and direct and indirect lobbying.
• We have a robust training and audit program and conduct regular reviews of our lobbying and related processes to ensure compliance with all applicable laws and Chevron policies.
• We report all jurisdictions where we lobby.
• We report a five-year history of corporate political and CEPAC contributions on the company’s external websites.
• Upon written request by any stockholder, we provide a list of all political contributions.
• Contribution and lobbying data are available from a number of public sources.

Chevron is committed to providing transparency and disclosure.

We list a five-year history of trade association membership where a portion of dues are attributed towards lobbying, including a 2022 annual and 2023 semiannual list that identifies U.S.-based organizations that reported a percentage of the funding they received from Chevron as a lobbying expense. This list also includes a range of lobbying expenditures for each organization.

Chevron contributes to various organizations organized under sections 527, 501(c)4 and 501(c)6 of the U.S. Internal Revenue Code. We have disclosed our political contributions yearly for over a decade. You can find the last five years of political contributions, both corporate and CEPAC contributions linked below. Most of our contributions are to organizations registered as IRS 527 committees.

For all jurisdictions where we are registered to lobby, we disclose and link to websites where you can find our reports.