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Continuous Integration of Corporate Responsibility Into Our Business

What We Said We Would Do in 2007

  • Continue with Operational Excellence Management System (OEMS) implementation across the company.
  • Begin rollout of Environmental, Social and Health Impact Assessment (ESHIA) process across our global operations.
  • Continue using OEMS self-assessment process.

What We Did in 2007

  • Advanced OEMS implementation across the company with ongoing training and certification, and strengthened OEMS compliance assurance capability.
  • Deployed ESHIA as a corporate standard for new projects.
  • Advanced commitment to good corporate governance by implementing a majority vote standard for election of directors in uncontested elections and by providing for a director resignation provision.

What We Plan to Do Next

  • Continue with OEMS implementation across the company.
  • Deploy corporate standard Compliance Assurance process.
  • Sustain rollout of ESHIA for new projects, including stakeholder and community engagement components.
  • Roll out updated Business Conduct & Ethics (BC&E) Code to our employees.

Stakeholder Engagement

What We Said We Would Do in 2007

  • Use ESHIA process to further strengthen stakeholder engagement.
  • Conduct stakeholder engagement training and make tools available to business units.
  • Continue aligning our corporate responsibility (CR) and annual reporting processes.
  • Continue posting corporate political contributions made during the previous year on www.chevron.com.
  • Continue engaging with stakeholders to improve our CR reporting.

What We Did in 2007

  • Strengthened stakeholder engagement through ESHIA training.
  • Integrated CR and Annual Report planning and production process.
  • Posted corporate political contributions on www.chevron.com.
  • Sought input from stakeholders to improve CR reporting.
  • Engaged Lloyd's Register Quality Assurance for verification of data reporting process.
  • Launched global campaigns to engage the public on energy issues, including advertising and Energyville online game.

What We Plan to Do Next

  • Undertake stakeholder engagement activities to progress CR approach and reporting.
  • Engage Lloyd's Register Quality Assurance for ongoing third-party verification.
  • Continue to engage the public in discussion on energy issues.

Global Strategic Workforce Development

What We Said We Would Do in 2007

  • Increase communication on our record of responsible corporate actions and policies, together with our business strategies, in recruiting efforts.
  • Deploy leadership development programs.
  • Conduct a Global Employee Survey with targeted questions on what makes employees stay with the company.

What We Did in 2007

  • Provided new employment for more than 7,000 people across the globe.
  • Expanded communication in recruiting efforts by emphasizing our values and culture.
  • Added new programs to help attract the best talent from around the world, including a partnership with 18 universities and colleges.
  • Implemented three new leadership training programs to supplement existing programs.
  • Conducted 2007 Global Employee Survey of total employee population.

What We Plan to Do Next

  • Continue to provide new employment across our operations.
  • Continue to implement global partnership programs to attract and hire talented people.
  • Further implement our retention strategies and develop our employees' capabilities.
  • Maintain our focus on structured leadership development programs for our supervisors, managers and senior leaders.

Health and Safety (Including HIV/AIDS)

What We Said We Would Do in 2007

  • Continue safety focus, aiming toward long-term goal of zero incidents.
  • Continue companywide deployment of corporate standard process for managing risk.
  • Continue implementing global HIV/AIDS policy.
  • Collaborate with other companies to implement health initiatives.
  • Continue implementing the Arrive Alive road safety initiative.
  • Host fifth annual Operational Excellence (OE) Forum.

What We Did in 2007

  • Established new Centers of Expertise – Incident Investigation and Learning, and Motor Vehicle Safety.
  • Continued training on HIV/AIDS prevention, testing, management and treatment, for a total of more than 17,000 employees trained over three years.
  • Added a new country program to the Arrive Alive road safety initiative.
  • Hosted fifth annual OE Forum for employees worldwide to share best practices.
  • Initiated a cardiovascular health program among employees in three countries.
  • Launched a corporate standard process to confirm all employees are fit for duty.

What We Plan to Do Next

  • Sustain commitment to reduce all incidents to zero.
  • Continue implementing global HIV/AIDS policy and collaborating with stakeholders on health initiatives for HIV/AIDS, tuberculosis and malaria.
  • Continue to address road safety.
  • Host sixth annual OE Forum.
  • Expand implementation of cardiovascular program companywide over the next three years.
  • Deploy corporate standard Occupational Hygiene process.

Community Engagement

What We Said We Would Do in 2007

  • Increase community investment in capacity building and economic development programs.
  • Continue developing our community engagement tool kit.
  • With rollout of companywide ESHIA, continue developing tools for social impact assessments (SIAs) and deliver training.
  • Expand community engagement (CE) practitioners' network.
  • Continue working with Regional Development Councils (RDCs) in the Niger Delta to create three-year development plans.

What We Did in 2007

  • Directed approximately 68 percent of total investments in CE initiatives to capacity building and economic development programs.
  • Implemented SIA training and distributed CE tools.
  • Continued to implement development plans with RDCs in Niger Delta.
  • Became first Corporate Champion of the Global Fund to Fight AIDS, Tuberculosis and Malaria, contributing $30 million over three years.
  • Marked fifth anniversary of Angola Partnership Initiative with evaluation of projects to be improved and replicated.
  • Supported public education in 23 U.S. Gulf Coast school districts in second of three year, $18 million Energy for Learning initiative.
  • Provided scholarships for Saudi students selected by their government to pursue bachelor's degrees at universities in the United States and elsewhere.

What We Plan to Do Next

  • Increase support and resources devoted to capacity building and economic development.
  • Continue working with RDCs in the Niger Delta to execute development plans.
  • Move forward on second phase of Angola Partnership Initiative with funds committed through 2012.
  • Leverage partnerships and invest $30 million over three years to assist Global Fund.

Human Rights

What We Said We Would Do in 2007

  • Continue rollout of Chevron’s Human Rights Statement, including employee training, over the next three years.

What We Did in 2007

  • Approved incorporating the Human Rights Statement into the BC&E Code in 2008 and continued employee training on the statement.

What We Plan to Do Next

  • Deploy updated BC&E Code and continue training on Human Rights Statement.

Climate Change, Renewables and Energy Efficiency

What We Said We Would Do in 2007

  • Continue implementing Action Plan on Climate Change.
  • Continue to partner in developing technologies, such as biofuels and market-based mechanisms, to reduce GHG emissions.
  • Begin operation of Darajat Unit III geothermal project in Indonesia.
  • Continue to work with California state officials and business community to understand technological possibilities for success and consider economic trade-offs needed to meet greenhouse gas (GHG) emissions law mandates.

What We Did in 2007

  • Performed better than our 2007 goals in GHG emissions and energy efficiency.
  • Invested in academic and government research programs to explore climate change policies and technologies, including biofuels and carbon sequestration.
  • Pursued opportunities to reduce flaring and venting in our global operations.
  • Began operation of Darajat Unit III geothermal project in Indonesia.
  • Continued to work with California officials and business community to shape sound implementation of 2006 law mandating GHG emissions reductions.
  • Engaged Det Norske Veritas to verify GHG emissions of operated assets.

What We Plan to Do Next

  • Continue operational activities to reduce GHG emissions and increase energy efficiency.
  • Continue to pursue strategic research alliances on renewable energy technologies, including development of cellulosic ethanol.
  • Extend engagement with state, federal and international officials on policies and regulations related to GHG emission reduction mandates.

Environmental Management

What We Said We Would Do in 2007

  • Implement corporate ESHIA and third-party waste standard
  • Continue companywide OEMS alignment with ISO 14001 and OHSAS 18001 standards.
  • Continue to compile and analyze environmental data, including water and waste data, across our operations to evaluate performance.

What We Did in 2007

  • Deployed corporate Third-Party Waste Stewardship process and established a community of practice.
  • Adopted updated Corporate Biodiversity Statement, and provided guidance on incorporating biodiversity assessments into corporate Risk Management, Property Transfer and ESHIA processes.
  • Updated self-assessment tools used to compare our operations against ISO standards, including 14001.
  • Adopted new environmental performance standards to minimize impacts from offshore production.
  • Conducted product stewardship reviews in six countries.

What We Plan to Do Next

  • Deploy global audit program and continue training to implement corporate Third-Party Waste Stewardship process.
  • Continue to implement ESHIA process and include biodiversity assessments in new projects.
  • Continue collection and analysis of environmental data to evaluate performance.
  • Continue OEMS alignment with leading industry standards and integrate OEMS environmental performance objectives and guidance into operations.