human rights

 respect for human rights is rooted in our values and applies wherever we do business

 

our management
of human rights

Chevron’s Human Rights Policy commits to respecting human rights as set out in the United Nations Universal Declaration of Human Rights and the International Labor Organization (ILO) Declaration on Fundamental Principles and Rights at Work, and adheres to the principles set out in the United Nations Guiding Principles on Business and Human Rights, the Voluntary Principles on Security and Human Rights and the International Finance Corporation’s Performance Standards.

Although governments have the primary duty to protect and ensure fulfillment of human rights, Chevron believes that we have a responsibility to respect human rights and that we can play a positive role in the communities where we operate. As stated in The Chevron Way: “We conduct our business in a socially and environmentally responsible manner, respecting the law and universal human rights to benefit the communities where we work.” Chevron’s Human Rights Policy focuses on treating our employees in a manner consistent with The Chevron Way, conducting security operations in a responsible manner, evaluating how our operations may impact communities and engaging with suppliers on issues related to human rights. The Board’s Public Policy and Sustainability Committee monitors social, political, environmental, human rights, and public policy matters relevant to the company’s activities and performance.

Our Corporate Human Rights Policy was adopted in 2009, following a Human Rights Statement endorsed in 2005. Our policy was updated in 2019. The policy applies to all of our employees, projects and operations, guides our respect for human rights across the business, fosters greater awareness of human rights issues throughout the company and enhances our capabilities to identify and manage human rights risks. Chevron regularly identifies and manages potential impacts through processes and tools, including global and context-specific impact assessments. We operationalize our Human Rights Policy by disseminating processes, procedures and tools, including guidance on conducting risk and impact assessments throughout the asset lifecycle, on engaging with suppliers, contractors, other business partners and security providers, and on managing community issues.

The policy is embedded in Chevron’s Business Conduct and Ethics Code compliance training for all employees. Various levels of training are in place to inform our teams as they work to manage potential impacts in the communities where we operate, the provision of security, the administration of our workforce, and the procurement of products and services.

Chevron’s Human Rights Policy is shaped around key areas relevant to our business:

  1. Employees

  2. Security

  3. Communities

  4. Suppliers and Contractors

  5. Other Business Partners

Key elements of the policy are outlined below.

respect in the workplace

Following the Australian Human Rights Commission Respect@ Work Report and a West Australian Parliamentary Inquiry into sexual harassment in the resources industry, there has been an increasing focus on inappropriate behaviors in Australia workplaces.

Against this background, Chevron Australia commissioned a voluntary review of behaviors in its workplaces. A specialist consultant, Intersection, conducted workforce engagements across upstream worksites in the Pilbara and Perth, examined potential barriers to reporting and provided 24 recommendations across four key focus areas:

  • Addressing the prevalence of any form of bullying, harassment and discrimination
  • Uplifting leadership accountability
  • Increasing diversity and inclusion
  • Improving the response to reports of inappropriate behaviors

Chevron Australia has accepted the recommendations and appointed a project manager, reporting directly to the Managing Director, to oversee implementation.

Chevron Australia has also held business unit-wide “Stand Up for Respect” events to discuss the importance of everyone contributing to a workplace free from bullying, harassment and discrimination.

employees

employees

Chevron employs tens of thousands of people globally, creating local jobs and developing local workforces. The Chevron Way and our policies require that we treat all of our employees with respect and dignity and promote diversity and inclusion in the workplace. Our company policies and procedures adhere to all applicable domestic laws and are consistent with ILO core labor principles, including freedom of association and collective bargaining, nondiscrimination, and the elimination of forced labor and underage workers in the workplace.

An example of this is Chevron’s enterprise-wide labor relations policy. If Chevron employees choose union representation, a Works Council or labor organization representation, Chevron’s policy is to attempt to establish a positive, cooperative business relationship with the certified representative of choice. We seek to adopt labor relations strategies that foster cooperation, open communication, and both employee and union participation in meeting the goals of the company. Our business units are expected to make labor relations decisions consistent with The Chevron Way, the business unit’s strategies and business plans and local government regulations.

In 2021, to educate our workforce, we provided human rights training to more than 5,400 employees and contractors – including appropriate personnel who joined Chevron as part of the Noble Energy acquisition ‐ using our updated human rights computer-based training module.

securityproviders

security providers

As a founding member of the Voluntary Principles on Security and Human Rights Initiative (VPSHR), which launched in 2000, Chevron has long demonstrated dedication to responsible security. The VPSHR is a multi-stakeholder initiative where government, civil society and company participants work together to promote implementation of a set of principles that guide natural resources companies on how to provide security for their operations in a manner that respects human rights. These principles are embedded throughout Chevron’s global operations. Our Operational Excellence Management System provides a comprehensive framework to identify and mitigate security risk and aligns security operations with our Human Rights Policy.

A component of the OEMS framework is Chevron’s Security Risk Assessment Program (SRAP), which includes tools and processes to identify and assess security risks, from corporate level down to individual facilities, and from conceptual projects to mature operations. The goal is to develop and implement effective and appropriate security mitigation measures. One objective of the Program is to help determine if security safeguards adhere to the Voluntary Principles on Security and Human Rights.

communities

communities

Guided by The Chevron Way, Chevron conducts its business responsibly, providing energy that is essential to human wellbeing and progress while benefitting the communities where the Company works. Chevron has processes that apply various levels of social impact assessments to operations within our control over the full asset lifecycle. These assessments provide a systematic and risk-based approach to identifying, assessing and managing potential social impacts, including human rights issues. Early and ongoing engagement with communities and key stakeholders is integral to identifying potential community impacts and developing appropriate mitigation plans.

Chevron’s management of human rights-related community issues is integrated into our Operational Excellence Management System (OEMS). The OEMS puts into action our Chevron Way value of protecting people and the environment and helps us achieve our vision to be the global energy company most admired for its people, partnership and performance. Our respect for human rights is reflected in all six of the OEMS focus areas, and our Stakeholders Focus Area is the nexus point for most community and rights holder considerations.

  1. Stakeholder engagement
  2. Indigenous Peoples
  3. Resettlement
  4. Operational-level grievances
  5. Community of practice

When potential issues related to resettlement of communities or engagement with Indigenous Peoples are identified, Chevron’s Resettlement Guidance and Indigenous Peoples Guidance provide our business units with a roadmap for how to navigate those situations in a manner that respects the involved rights holders.

We respect the lawful exercise of legitimate rights by human rights defenders, as detailed in our Statement on Human Rights Defenders.

Stakeholder engagement
OEMS addresses social impacts in various ways. The Stakeholders Focus Area defines how we engage stakeholders to foster trust, build relationships, and promote two-way dialogue to manage potential impacts and create business and social opportunities.

Our operations systematically manage the Stakeholders Focus Area through a stakeholder engagement and issues management (SEIM) process. The SEIM process enables us to manage social, political and reputational risks and opportunities related to communities, government and other external stakeholders across the lifecycle of the asset. Soliciting input from communities and other stakeholders is central to the SEIM process. The SEIM process includes soliciting input from communities and other stakeholders while systematically assessing risks and safeguards. Key common community-related safeguards include the execution of plans related to stakeholder engagement, social impact mitigation, social investment, grievance mechanisms and emergency response.

In 2021, more than 19 business units updated their risk profiles. The types of risks captured through this process vary considerably and can include social and human rights impacts. Once a Chevron business unit identifies a risk, it establishes management plans to address the risk and prevent or mitigate potential impacts.

Periodic management system cycle assessments are conducted that evaluate OEMS performance and effectiveness. The OEMS also includes assurance and audit programs of operating units and focus areas to confirm that safeguards are in place, functioning, and meet internal and external requirements. Since 2021, stakeholder-related safeguards have been formally audited across 18 business units and specific actions have been identified to continue improving their design, effectiveness and execution. 

At Chevron, stakeholder engagement is critical in identifying and mitigating risk, bringing about sustainable social and economic development, and fostering constructive relationships. Listening to and engaging appropriate stakeholders improves our ability to anticipate change; avoid or manage conflict; identify emerging issues, trends, and opportunities; appreciate and respect cultural diversity; and understand key economic, environmental, and social issues that affect our decision making and performance. Several corporate guidance documents identify stakeholder engagement as a business requirement.

As stakeholder engagement is practiced at the corporate, regional, and local levels of Chevron, the process provides general guidance, principles and steps for identifying stakeholders, planning and executing an engagement process that can be scaled to local operating environments, and specific business requirements. In summary, the process requires that:

  • A system is in place to identify stakeholders and to plan and execute engagement with them that promotes mutual understanding about operations, facilities, projects, and products.
  • Chevron fosters ongoing two-way engagement with communities, nongovernmental organizations (NGOs), government and regulatory authorities, and other appropriate stakeholders to address potential security, safety, health, environmental, supply chain, social, human rights and other concerns.
  • Appropriate plans are in place, are evaluated on a periodic basis and include stakeholder engagement in the management of potential social impacts and issues management, including grievances.

innovative community engagement

Chevron Nigeria Limited (CNL) operations are in the Niger Delta region, home to multiple ethnic groups and known to be conflict-affected. In 2003, a violent interethnic conflict resulted in significant damage to company infrastructure. To move forward, CNL pursued a new approach to stakeholder engagement, leading to a global memorandum of understanding (GMoU).

The GMoU is a multistakeholder partnership model. Clusters of ethnically similar communities organize into regional development committees that govern how CNL funding is allocated for the socioeconomic development of the area. The GMoU model is based on accountability, transpar­ency and unity among communities and demonstrable positive impact. Since its adoption in 2005, the model has been acknowledged globally for addressing community restiveness, peace building and facilitating rapid, sustainable socioeconomic development.

Nigeria’s Petroleum Industry Act (PIA) of 2021 requires allocation of a percentage of operating expenditure to host communities’ development trusts. A key objective of the PIA is to enhance peaceful and harmonious coexistence between companies and host communities. Leading up to and after enactment of the law, CNL broadly communicated our experiences working under the GMoU model. CNL shared the model with industry peers and the government.

Indigenous Peoples
Chevron acknowledges the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP) and strives to obtain free, prior and informed consent of indigenous communities as described in the 2012 International Finance Corporation Performance Standard 7 and supporting guidance, and consistent with the law. Chevron is committed to interacting with Indigenous communities in a way that respects their history, culture and customs, within applicable legal and constitutional frameworks. We carry out this commitment by applying OEMS and our Human Rights Policy, which sets the expectation for the company to consult with Indigenous communities and understand their perspectives on Chevron projects and ongoing operations. Chevron’s Indigenous Peoples’ Guidance document outlines key provisions for effective management of relations with Indigenous Peoples, which include stakeholder identification, defining the regulatory framework, determining a preferred method of engagement, assessing potential impacts and benefits, conducting community consultations, and developing and managing plans. On-the-ground practitioners also benefit from active information sharing among a network of experienced Chevron employees. In 2022, we reviewed our Indigenous Peoples Guidance and reaffirmed its alignment with The Chevron Way vision and values, Chevron’s Human Rights Policy and our OEMS.

Resettlement
Chevron’s Human Rights Policy sets the expectation that the company will avoid relocation or resettlement whenever possible. When resettlement is unavoidable, we strive to work collaboratively and transparently with local communities, including Indigenous Peoples, to foster ongoing support for our activities. Our policies and procedures are consistent with relevant external guidelines, including the International Finance Corporation’s Performance Standards on Environmental and Social Sustainability. Chevron’s Resettlement Guidance provides a framework for projects and operations to utilize when considering resettlement, from assessment and planning to implementation. Our resettlement principles include informed business decision making, partner alignment and consultation with affected persons.

Operational-level grievances
In 2018, Chevron’s Stakeholder Engagement and Issues Management Process added a requirement for appropriate operations to utilize a Grievance Mechanism. This new requirement built on learnings from the many operations that have successfully used such community feedback mechanisms. Business units design or update a grievance mechanism that strives to be legitimate, accessible, predictable, equitable, transparent, and rights-compatible. The mechanism should be based on engagement and two-way dialogue and promote continuous learning. In 2021, six business units underwent reviews of their grievance mechanisms to assess their efficacy and identify opportunities for improvement.

Community of practice
Chevron benefits from an internal “community of practice” network of experienced social performance practitioners. For example, Chevron convenes workshops for company practitioners who are involved in managing land issues related to resettlement. In the workshops, Chevron practitioners discuss how the company’s expectations on human rights extend to resettlement issues, discuss relevant international standards and share lessons learned from their practical experiences.

suppliersandcontractors

suppliers and contractors

We expect our suppliers and contractors to treat their employees and to interact with communities in ways that respect human rights and adhere to the spirit and intent of our Human Rights Policy. We require our suppliers and contractors to adhere to all domestic laws and expect them to adhere to the International Labour Organization’s (ILO) core principles. These principles include the freedom of association, the right to collective bargaining, the elimination of forced and compulsory labor, the abolition of child labor, and the elimination of discrimination in the workplace.

Chevron seeks to implement our human rights–related expectations of contractors, suppliers and services providers through a variety of due diligence and performance management processes that we apply to current and potential suppliers.

One way that Chevron manages potential human rights risk in our supply chain is through our Contractor Health, Environment and Safety Management, or CHESM. Through this process, we work with suppliers to increase accountability and continually improve their performance. Major suppliers are selected for periodic audits and business units may use internal, external or third-party auditing resources, depending on the audit strategy. The audits cover health, environmental and safety standards and compliance. Labor issues or concerns may be emphasized as part of this process, depending on the business location.

Annually, Chevron sends letters to the executive leadership of several hundred contractors and suppliers about the importance of respecting human rights. We take the opportunity to remind these leaders that Chevron expects our contractors and suppliers to treat their employees and interact with communities in a manner that adheres to our Human Rights Policy and the ILO’s Declaration on Fundamental Principles and Rights at Work.

otherbusinesspartners

other business partners

We encourage our business partners, including business customers, or businesses with which Chevron is associated in a joint venture, partnership or other business collaboration, to respect the spirit and intent of Chevron’s Human Rights Policy, and our statements and guidelines relating to Indigenous Peoples, human rights defenders, land tenure, and water.

We further encourage them to adhere to all applicable international principles as set out in the United Nations Guiding Principles on Business and Human Rights, the Voluntary Principles on Security and Human Rights, the United Nations Universal Declaration of Human Rights, International Finance Corporation’s Performance Standards and the International Labor Organization (ILO) Declaration on Fundamental Principles and Rights at Work.

principals

environmental justice principles

Chevron developed a set of environmental justice principles. These principles are designed to support our engagements with stakeholders as well as our policy efforts. They reflect Chevron’s beliefs and are aligned with policies and processes such as the Stakeholder Engagement Issues Management (SEIM) process and the Environment Risk Management Process. This work is complemented by our efforts to advance racial equity, respect human rights, and protect people and the environment.

Through our membership in the American Petroleum Institute’s (API’s) Environmental Justice Coordination Team, Chevron contributed insights into the development of API’s environmental justice position and principles. API’s principles reflect the organization’s long-standing commitment to advancing industry standards for community engagement and improving environmental performance, and they complement Chevron’s Environmental Justice Principles. Going forward, Chevron expects to continue serving on the working team to support API’s analysis of proposed administrative and legislative actions at federal and state agencies relating to environmental justice.

Subject matter experts from our legislative and regulatory affairs and health, safety and environment functions continue to participate and engage externally. For example, in addition to working with API’s Environmental Justice Coordination Team, they engage with state and local trade associations. Our efforts to support our neighboring communities demonstrate our continued focus on environmental health and social performance.

A group of employees has been trained to serve as qualified environmental and social facilitators. Facilitators aim to look across environmental, social and community health parameters to assess cross-cutting impacts, promoting conversations that help us better understand how social and environmental issues are interconnected.

externalleaders

external leadership in human rights

Chevron works to advance initiatives related to business and human rights, including through groups such as IPIECA, the global oil and gas industry association for environmental and social issues. IPIECA’s Human Rights Working Group and Social Responsibility Working Group develop best practices and disseminate learning materials to industry practitioners on key issues where human rights impacts can occur, including within our supply chain and security operations, and in the communities where we operate. Chevron helped IPIECA develop its Responsible Security Operations Task Force, which continually shares practices on security and human rights through information sharing, training and peer learning. Chevron is also a member of the Global Business Initiative on Human Rights, Business for Social Responsibility (BSR) Human Rights Working Group and other organizations that seek to advance corporate respect for human rights around the world.

Equatorial Guinea
Since 2018, the Equatorial Guinea business unit has supported Ven Amiga (Spanish for “Come Friend”), an anti-trafficking initiative run by the nonprofit organization Por la Igualdad y por los Derechos Humanos de la Mujer en África (IDHMA).

The program is conducting a national prevention and awareness campaign, mobilizing communities at all levels to prevent human trafficking. As the only NGO working on anti-trafficking measures in the country, IDHMA is working with the government of Equatorial Guinea to advocate for the enforcement of laws and prevention of human trafficking. Supported by the U.S. Embassy and working across sectors, it is also utilizing innovative methods to educate, inform and galvanize support. Chevron is proud to support IDHMA’s work with the government of Equatorial Guinea, the U.S. Embassy and other entities as a part of this cross-sector collaboration.

Through the Foundation for Partnership Initiatives in the Niger Delta (PIND), Chevron is helping to reduce conflict, promote peace, create new jobs and livelihood opportunities, enable access to clean energy and stimulate the local economy. PIND facilitates investments from government, donors and private companies to advance socioeconomic development in the region. As of 2021, the initiative had 11,372 active peace actors to reduce conflict and facilitated 10,562 full-time jobs in the agro-allied and renewable energy sectors.

globalops

global operations, one approach

Chevron’s decision whether to invest in a country or a particular project or to continue or cease operations requires consideration of financial and nonfinancial criteria. For instance, we assess whether operating conditions will allow us to provide a safe and secure environment for our personnel and assets and support human rights and anticorruption. Read more about it in Chevron’s Global Operations, One Approach.

In 2021, Chevron’s Global Security function updated the methodology for identifying operations that are in conflict-affected and other high-risk areas. An enhanced review of potential security-related human rights risks takes place as part of our security risk assessment program.

The enhanced evaluation complements the existing security management review, which has human rights as one of its nine focus areas, and assesses the security management efforts within a business unit. As part of our commitment to continual improvement, Chevron will seek to identify additional opportunities to advance respect for human rights in conflict-affected and other high-risk areas across the focus areas of our Human Rights Policy.