2010 Corporate Responsibility Report

Welcome

3 4 10 14
A Message Australia: Angola: California,
From Our CEO A Natural Partnership Partnerships United States:
The Gorgon Project and Possibilities Finding Common
shows how energy Sustainable programs Ground in Richmond
development and the in Angola will improve The Richmond
environment coexist. the quality of life. Refinery works with
the community to
Climate Change 7 Social Investments 13
identify and address
Executive Interview 9 local needs.
The Environment 17

On the Cover: Marine biologists Anthony Bougher (left) and Luke Skinner conduct an intertidal survey
in the Indian Ocean adjacent to the site of Chevron’s Wheatstone Project, which will process natural gas
from fields offshore Western Australia.
 Partnering for Shared Progress
We believe that business and society are interdependent. This belief
drives our commitment to partnership to create mutual benefit, or
shared progress. At Chevron, partnership is a value that we honor every
day, wherever we operate, from our business to our social investments.
We welcome your feedback. Thank you for your interest in Chevron.

18 22 28 32 36
Kazakhstan: U.S. Gulf of Mexico: Nigeria: Indonesia: Additional
Sea of Opportunity Oceans of Promise Healthy Employees, Cultivating Information
Our longstanding part- Our culture promotes Healthy Community Gotong Royong and Data
nership with Kazakhstan safe operations, resulting In Nigeria, we work We provide economic Performance Data
contributes to economic in a safety record that with partners to combat opportunities for GRI and API/IPIECA Index
and social change. leads the industry. disease, and our efforts Indonesians through our Assurance Statement
are making a difference. operations and support Glossary
Diversity 21 Operating With
for local initiatives. About This Report
Excellence 25 Human Rights 31
Renewable Energy 35
Executive Interview 27

1
‘Business and
community
partnerships that
emphasize economic
progress can help
set countries on
a better course.’
A Message From Our CEO

Shared Progress We recognize that business success is deeply linked to

Energy is essential to human progress — it creates jobs, fuels society’s progress. Our investments in communities —
innovation and powers virtually every element of the global developed in partnership with those communities — also
economy. Providing that energy safely, reliably and economi- are investments in the long-term success of our company.
cally is a great responsibility that we take seriously. We are This approach delivers mutual benefit and shared progress.
proud that 2010 was the safest year in our company’s history, In 2010, we invested $197 million in our communities, more
giving us one of the best records for safety in our industry. than twice the amount we invested in 2006.

Over the past few decades, our industry has changed We make community investments in the three areas that
dramatically. New technology and advanced skills have we believe are the foundation of working societies the
combined to unlock new production and growth in geologic world over — health, education and economic development.
areas once beyond our reach. Our investments in health focus on training, testing and
treatment for such diseases as HIV/AIDS, tuberculosis and
One of these frontiers, deepwater production, experienced malaria, which are critical economic and public health chal-
a tragedy in the U.S. Gulf of Mexico, resulting in loss of lenges in some of our largest operating areas.
precious life. It also took a toll on the economy and the
ecology of the Gulf Coast. Following the BP Macondo Business and community partnerships that emphasize
incident, Chevron led the joint-industry task force to raise economic progress can help set countries on a better
even higher standards for deepwater operations across the course. One such investment is the Niger Delta Partnership
industry. The incident reinforced our own safety imperative Initiative, launched in 2010 — an innovative, multipartner
to reach our goal of zero incidents wherever we operate. effort to promote economic development, conflict resolution
Toward that goal, all of our projects are guided by our and capacity building. Our initial commitment is $50 million.
strong safety culture. We leave nothing to chance because
we have a deep, personal stake in operating safely — to Our investments in education can strengthen communities.
sustain the public’s trust in our operations, to bring our As part of our California Partnership initiative, for example,
employees safely home and to deliver value to those who we’ve teamed up with leading educational nonprofits to
invest in us. Our success rests on a culture true to our create opportunities in critical STEM subjects — science,
Chevron Way values — getting results the right way. technology, engineering and math — for underserved
students. In 2010, we reached more than 245,000 students
Corporate responsibility at Chevron begins with safe opera- and 3,900 teachers in California.
tions, but it doesn’t end there.
Through multistakeholder collaboration, such as the
Voluntary Principles on Security and Human Rights, we
are promoting respect for global human rights. To empha-
size the importance of our own commitment, in 2010 we
developed plans and provided resources to implement our
global Human Rights Policy.

As you’ll read in this report, our community investments

have increased, our partnerships are stronger and our
impact is greater. These successes demonstrate shared
progress for business and communities.

John S. Watson
Chairman of the Board and Chief Executive Officer
May 2011

3
 Australia:
A Natural
Partnership
A nature reserve is an unlikely site for
a major new energy plant, but Chevron
is showing how it can work.

Barrow Island, offshore Western Australia, is the site of the Gorgon natural gas project.
Chevron has been safely producing oil for more than 45 years on Barrow.

4
$56 10,000 No. 1
billion jobs in size, the Gorgon
CO2-injection project
(AU$65 billion) will be will be created at peak is expected to be the
contributed to Australia’s construction world’s largest
gross domestic product
Barrow Island, a Class A nature Reducing Emissions

70%
reserve off Australia’s west coast, Natural gas is the cleanest-burning
will be home to the Gorgon Project, ­fossil fuel. Gorgon will include the
which will tap into vast natural gas world’s largest carbon dioxide– (CO2-)
resources 43.5 miles (70 km) north- injection project, which will inject
west of the island. The island’s rich of construction con- 40 percent of the project’s GHG
and unique biodiversity has remained ­emissions underground. This will make
intact since naturalist John Thomas
tracts for workforce Gorgon one of the world’s least GHG-
Tunney’s writings secured its designa- housing will go to firms intensive LNG facilities. The injection
tion as a wildlife refuge a century ago. in Western Australia project will separate the CO2, a natural
Its conservation is a national priority. component of produced gas, and inject
it 1.6 miles (2.6 km) beneath the island
Chevron is no stranger here, having into a deep sandstone reservoir. The
successfully operated on Barrow for Australian government is a partner
more than 45 years while minimizing here, ­having contributed $51 mil-
our footprint on the island. Building lion (AU$59 million) to the injection
on this environmental stewardship project as part of its Low Emissions
involves a mix of advanced technology Technology Demonstration Fund.
and a commitment to detail, addressing
everything from greenhouse gas (GHG) The plan was recognized internation-
emissions to local concerns over light ally by the Carbon Sequestration
levels from our operations on Barrow’s Leadership Forum, a group of
nearby beaches where turtles lay 24 national governments and the
their eggs. Our strong environmental European Commission. We will
performance has allowed us to expand share data from the project, which
operations, resulting in a benefit to our will accelerate and enhance scien-
business and the Australian economy. tific understanding of a technology
Above: Environmental scientist some scientists believe could play
Strengthening the Economy Daniel Joyce is at the site of the an important role in reducing global
At $37 billion (AU$43 billion), the Wheatstone gas processing plant GHG emissions.
Gorgon Project will be Chevron’s larg- in Western Australia.
est investment, targeting 40 trillion Partnering With Residents of
cubic feet of gas. Gorgon represents Western Australia
the single biggest resource project Natural gas will be offloaded from We are taking steps to make sure
in Australia’s history. Independent Barrow Island as liquefied natural Gorgon benefits the residents of
consulting firm ACIL Tasman estimates gas (LNG) and transported mostly to Australia, both economically and
that Gorgon will contribute $56 billion Asian markets, while gas for Western socially. Thus far, Gorgon has created
(AU$65 billion) to Australia’s gross Australia’s consumption will be 4,000 jobs in Australia. At peak con-
domestic product. More than $8 billion piped ashore. Gorgon precedes our struction, it will employ 10,000 people.
(AU$9 billion) has already been com- Wheatstone Project, a second offshore
mitted to companies in Australia — and natural gas project currently in the A $394 million (AU$458 million)
total spending in Australia is targeted planning stages. construction village is being designed
at $17 billion (AU$20 billion) over and built by a joint venture between
five years. Australia’s prime minister, Julia Gillard, companies in Australia — Thiess, Decmil
toured the project site in March 2010 and Kentz. Thiess managing director
“Many people don’t realize that and said, “Having been here and seen David Saxelby said a significant aspect
through Gorgon, Chevron is providing Barrow Island and [the] Gorgon Project, of the contract was that it offered
opportunities and benefits on a scale it’s given me a real sense of the size enormous potential for local jobs,
never seen before in this country,” said and scale of this project and what it is and up to 70 percent of the contract
Chevron Australia managing director going to mean to the nation’s future. . . . requirements would be sourced in
Roy Krzywosinski. This is a great project for employment Western Australia.
in this country.”

6
In 2009, Australia’s Ausco Modular
was laying off workers. In 2010, it
hired 200 people to build offices, labs
and control rooms worth $51 million
(AU$59 million) for Gorgon. Already
Climate Change
some 80 vessels, employing hundreds
of workers, are supporting Gorgon’s
dredging and the delivery of supplies
and materials. Gorgon’s CO2–injection project is one of
Other Australian companies have
the many ways we are working to address
benefited through hundreds of concerns about climate change.
jobs created in freight, construction,
general utilities, accommodation, Now in its 10th year of implemen- energy companies for transpar-
telecommunications and site prepara- tation, our Action Plan on Climate ency in monitoring and disclosure
tion. Howard Porter, a local company, Change continues to guide our of our GHG emissions and carbon
had 70 employees building 300 trail- efforts in greenhouse gas (GHG) management practices.
ers for Gorgon under a $17 million emissions reduction, improved
(AU$20 million) contract that Porter energy efficiency, and research • As a member of the Global Gas
called the single biggest transport and development in innovative, Flaring Reduction Partnership, we
manufacturing order ever in West­ low-carbon energy technologies. are working to minimize gas flar-
ern Australia. ing and venting. As of late 2009
• Since 1992, we have reduced the in Kazakhstan, Tengizchevroil —
Gorgon also is a magnet for talent. total energy consumption required in which Chevron is a 50 percent
A recent Chevron employee meeting to perform all our business opera- partner — eliminated routine
in Perth included many people who tions by 33 percent compared with flaring. In Nigeria, Angola and
had been on the job less than a week, the energy we would have used to elsewhere, we continue projects
but that’s business as usual as the complete the same functions. to recover gas that would have
company fills a new 13-story office been flared.
tower with about 800 Gorgon workers. • We advise customers on energy
efficiency improvements and • We deployed a new enterprise­
Our collaborative approach played a renewable power, reducing their wide system for reporting GHG
significant role in developing the native energy use by an average of emissions and energy efficiency,
title agreements with the Kuruma nearly 30 percent. implemented a strategy to man-
Marthudunera people in June 2010 age future carbon-market activity
and the Yaburara Mardudhunera peo- • In 2010, the Carbon Disclosure growth, and conducted third-party
ple in November 2010 for the Gorgon Project’s Leadership Index recog- verification of our GHG emissions.
Project’s domestic gas pipeline. nized Chevron as a leader among

Under the Chevron-operated Gorgon

Project Cultural Heritage Management For additional information on how we are addressing this issue, please
Plan, Australian Aboriginal people visit Chevron.com/ClimateChange.
are involved to help the project avoid

Right: Euros, or wallaroos (left), and

­perenties thrive on Barrow Island.
Some native species now exist only
on Barrow.

7
heritage sites. “When we were To prevent invasive species and
­surveying our country with the other pests from being brought onto
company [Chevron], we came across the island, we have a rigorous and
several important sites in the desig- ­expansive quarantine plan, which
nated construction area,” Kuruma Western Australia’s Environmental
Marthudunera spokesperson Cyril Protection Authority said “likely
Lockyer said. “And after talking with represents the best practice in
Chevron, the result is that the com- the quarantine management of a
pany will build the pipeline around large operation.”
these areas and not destroy these
sites. This type of working relationship Our quarantine management proce-
will help us preserve our heritage for dure, in place for more than 45 years,
future generations.” has improved over time. Goods being
shipped through the Dampier sup-
With our commitment to Aboriginal ply base are tagged with one of three
employment, construction contrac- colors to make sure the required
tors and others are encouraged to procedures are taken. Nothing is
hire Aboriginal people. Additionally, shipped to Barrow without a green
we are working to identify longer-term tag. At the Australian Marine Complex
career opportunities. Peter Eggleston, in Henderson is a quarantine wash-
Chevron Australia’s External Affairs Top: Ann Hayes, of the local Aboriginal down area resembling a huge parking
manager, said, “We’re now very much Thalanyji group, accompanies Chevron lot and a giant shed big enough to
a part of and are engaged extensively contract botanist Jerome Bull on a cover a football field. There’s also a
with Aboriginal communities in the botanical and indigenous heritage larger-than-life hair dryer that cleans
areas near our operations.” survey at the Wheatstone site. Bottom: vehicles and goods bound for the
Equipment headed for Barrow Island is island. And the process doesn’t end
Business and Nature Coexist shrink-wrapped during quarantining. when the freight is put on ships. At the
Barrow Island, once attached to the island, inspectors can stop goods and
continent of Australia, now lies about return them to the mainland on the
43.5 miles (70 km) offshore, having We minimized the project’s footprint next barge. Today, Barrow is the only
been separated from the mainland on the island itself. The seismic survey island in the region free from intro-
and becoming a sort of living ark. It of the underground geology where duced species such as cats, rabbits,
is home to more than 350 species of CO2 will be injected was also modified. rats and mice.
native plants, 14 species of mammals, A conventional survey, consisting of
100 species of birds and 54 species of clearing paths to accommodate heavy Yet another environmental con-
reptiles. Some of them are found no trucks that haul necessary equipment, sideration is the nighttime lighting
other place on Earth. would have disturbed about 700 acres necessary for the new LNG plant. Four
(283 ha). Instead, a freight helicopter species of sea turtles nest on Barrow,
We have been working with Harry did most of the heavy lifting — approxi- and light can cause them and their
Butler, Ph.D., one of Australia’s pre- mately 15,000 separate lifts — while hatchlings stress.
mier conservationists, throughout lighter equipment was carried by foot.
oil production and Gorgon develop- By the end, fewer than 47 acres (19 ha) Daniela Ratcheva, a senior envi-
ment to minimize any impact to the were disturbed. ronmental engineer with Chevron
island ecology. Australia, delivered a detailed presen-
Donna Parker, CO2-injection project tation to a conference in Queensland
“Today, all the species I experienced manager, is one of those who are proud in September 2010. She demonstrated
when I first visited Barrow Island in of the achievement. “This extraordi- how we engineered the plant’s lighting
1963 remain,” he said. “When you have nary effort by all involved was vital to systems to not disturb turtles and to
a world-class quarantine process sup- delivering baseline survey results and comply with the stringent environmen-
ported by a workforce that truly cares maintaining our reputation as an envi- tal approval conditions and applicable
for the environment, this is what you ronmental champion of Barrow Island,” safety laws and standards while not
can achieve.” she said. compromising safe ­operability.

8
Executive Interview

What How When

What is the biggest How are you addressing When will the Gorgon Project
challenge that you face? that challenge? become a reality?

By 2030, world demand for energy The development of Chevron’s Benefits already are being realized.
is expected to grow by approximately world-class gas resources will provide Though production of natural gas
33 percent — with Australia’s neigh- Australia and the countries receiving is not planned until 2014, billions of
bor, Asia, predicted to account for the project’s LNG with opportunities ­dollars in contracts have been awarded,
60 percent of that growth. Chevron is to affect their greenhouse gas emis- putting people to work. Approximately
fortunate to find itself in Australia, sur- sions. Compared with the use of coal 1,500 are employed on location on
rounded by natural gas resources on to generate electricity, natural gas Barrow Island, and 4,000 across
the doorstep of the growing demand from the Gorgon Project will have the Australia are employed as a result of
in the region. The Gorgon Project alone same effect on global emissions as Gorgon. Those numbers will grow as
is set to increase the supply of domes- removing two-thirds of the vehicles the project ­gathers pace.
tic gas to Western Australia by about from Australian roads.
30 percent. We must link energy supply The Greater Gorgon Area gas fields
to energy demand while addressing Most supply-demand forecasts predict contain enough energy to power a
the risks posed by climate change. that natural gas will play an integral city of 1 million people for 800 years.
role in the energy mix as the world The Gorgon Project is long term and
transitions to a lower-carbon future. will benefit generations to come.
The Gorgon Project and Australia are
set to be global leaders in the appli-
cation of underground CO2-injection
technology. We are committed to shar-
ing information from the monitoring
program at Gorgon to assist in building
a greater understanding around this
emerging and important technology.

Roy Krzywosinski became managing

director of Chevron Australia in
January 2008 and helped steer the
Gorgon Project to a final investment
decision about 18 months later.

Roy Krzywosinski
Managing Director, Chevron Australia

9
 624,000 5,500 200,000
people were ­vaccinated farmers received safe blood transfusions
against polio in Cabinda technical assistance were administered
in December 2010 and almost doubled through Chevron’s
their yields between support
2007 and 2009

Chevron medical director in Angola, Dr. Ana Ruth Luis, consults at the company’s
Luanda Clinic, which offers primary medical care to retirees, employees and their
dependents. Nuno Miquel Baptista is an X-ray technician at the clinic.

10
Angola:
Partnerships
and Possibilities
Angola’s South Atlantic coast, a land of rainforests, savannas
and agricultural highlands, is rich in natural resources and
possibility. Our business operations and community partnerships
there offer support to a population trying to improve its
infrastructure and grow its economy.

The Peace Agreement of April 2002 Following the Angola Partnership We are also pioneering business
marked the end of a nearly 27-year Initiative model, we are working to programs for high school students.
civil war that devastated the economy promote robust micro, small and Working with the National Institute
and increased Angola’s dependence on medium-size businesses outside the for Educational Research and Develop-
the oil industry. As the country recov- oil industry. For example, we support ment and the United Nations Industrial
ers, Chevron has been responding to the Luanda Business Incubator, a pro- Development Organization, our $1 mil-
community needs. Our investments in gram to strengthen the operational lion contribution in 2010 is helping
health, education and economic devel- and technical capabilities of service launch an entrepreneurship curriculum
opment in Angola improve livelihoods providers. The program has trained for more than 2,000 students in nine
and foster stable operating environ- more than 200 entrepreneurs in provinces. The Ministry of ­Education
ments that contribute to our ability to ­business planning and helped create plans to roll out the curriculum nation­
conduct business. 143 new jobs in 2010. wide, reaching 500,000 students
by 2013.
Partnering for Sustainable “To many Angolans, the concept
Economic Growth of entrepreneurship is new and In 2010, with support from the Euro-
In 2002, we launched the Angola needs nurturing,” said Eunice de pean Union, UNESCO and UNICEF,
Partnership Initiative, with $25 million Carvalho, Policy, Government and we partnered with the Ministry of
and a commitment to address needs Public Affairs general manager for Education and donated $1.5 million to
beyond those near the vicinity of our Chevron in Angola. implement a teacher training program.
operations, focusing particularly on Nearly 400 teachers and administra-
regions most damaged by the war. tors attended.

11
 The ProAgro project, funded jointly

Partnership by Chevron and the U.S. Agency for

International Development from 2006
With the Global Fund through 2010, facilitated sustainable
business relationships between produc-
ers, banks, processors and distributors
Chevron’s partnership saving lives and improving • About 380,000 people com- of cash crops. The project provided
with the Global Fund to health care in countries pleted voluntary HIV/AIDS technical assistance to more than
Fight AIDS, Tuberculosis where we operate. counseling and testing.
5,500 farmers, who almost doubled
and Malaria has helped
• About 1 million malaria nets their yields between 2007 and 2009.
improve the health and Through our first three
were distributed.
well-being of millions of years of investment in
people in Africa and Asia. Global Fund grants in • More than 1 million rapid- Fighting Disease
We made an initial $30 mil- Angola, Nigeria, South diagnostic tests for malaria Since 2008, when we funded a
lion investment in the Africa, Thailand, Indonesia were distributed.
$350,000 vaccination campaign
Global Fund between 2008 and the Philippines, we
and 2010. The Global Fund’s contributed to significant In 2010, we announced a in Uige and Cabinda provinces, we
performance-based funding results, including the commitment of an addi- have partnered with Angolan health
model and rigorous meas­ following: tional $25 million to the authorities and UNICEF to provide vac-
urement and evaluation Global Fund, raising our cinations against the wild poliovirus.
• As many as 3.4 million
system have demonstrated six-year investment in the
people were directly
that our investment has Global Fund to $55 million.
reached through HIV/AIDS Through these campaigns and the
yielded high-impact results,
prevention programs. country’s other efforts, polio was
thought to have been eradicated in
Angola and neighboring Republic of
the Congo for a decade. But in Novem­
Promoting Economic Diversity ber 2010, an outbreak erupted in
In 2007, Chevron became a minor- Chevron is the largest Brazzaville, Congo. By December, it
ity partner in Banco Africano de had killed an estimated 220 people.
foreign oil-industry
Investimentos Micro Finanças (BMF),
formerly called NovoBanco. Since employer in Angola; We responded by sending people
then, BMF has made approximately and financial resources to prevent the

88%
$54 million in loans to Angolan entre- disease from spreading into Angola,
preneurs. From 2006 to 2010, BMF supporting an emergency campaign
opened 10 branches in five Angolan that vaccinated 624,000 people
provinces, and in 2010, BMF provided in Cabinda in December 2010 and
$9.9 million in loans to Angolan micro of Chevron’s employees donating $950,000 to the national
and small entrepreneurs. Also in 2010, campaign to fight polio, specifically
we contributed $500,000 to expand
in the country are for the provinces of Cabinda, Lunda-
BMF’s operations in Cabinda. Angolans Norte, and Lunda-Sul. More than
15,000 Chevron employees, family
Joaquina Manuel, an entrepreneur members and contractors based in
who exemplifies the country’s opti- Cultivating Angola’s Fertile Land Cabinda province were vaccinated as
mism, established a wholesale and While the country was once a recipi- part of the campaign.
retail business in the 1980s, but a ent of global food assistance, Angola’s
national currency crisis drove it into fertile soil, plentiful water, conducive Polio is just one of the diseases that
bankruptcy. She started over with a climate and hardworking farmers led our programs address.
$3,000 loan. Success bred success, many donors to end support for food aid
and additional loans allowed her to programs. But despite more of Angola’s “In the past 20 years, Chevron and
expand her business. farmers cultivating the land, most are partners have invested more than
producing at a subsistence level. Still, $29 million in medical training and
“These loans were like a rebirth for they have enormous potential to trans- treatment for and education about
my business,” said Manuel. form their operations into businesses. infectious diseases and in support for

12
blood banks and the construction of
health facilities all over the country,”
said Dr. Ana Ruth Luis, Chevron’s medi-
cal director in Angola. Social
We remain committed to helping
stop the spread of disease through
Investments
unsafe blood. With our partners — the
Angola Ministry of Health, the Safe
Blood for Africa Foundation, and the
U.S. Centers for Disease Control and
Prevention — we established a safe Our success as a business is inextricably
blood program in Cabinda province.
Our nearly 20 years of support for this linked to the well-being of our employees and
blood bank has allowed for more than our ­communities.
200,000 safe transfusions.

Fighting malaria remains an important Social investments at Chevron Social Investment Spending
battle in Angola. In 2010, we sponsored aim to foster economic stability In millions

the first entomological course on and improve quality of life. They $197

malaria in the country. Organized by the are delivered through partici-

Global Business Coalition on HIV/AIDS, patory partnerships that build $156

Tuberculosis and Malaria and by the foundations for positive, last- $144

Corporate Alliance on Malaria in Africa, ing results. We invest in health, $119

the course brought 41 health specialists education and economic devel-

$91
from all 18 provinces to learn mosquito opment — the building blocks of
control techniques. In 2010, Cabinda’s strong communities.
program treated 25,317 children under
age 5 and 5,408 pregnant women. In 2010, we made $197 million in
social investments to help build
“It takes community action and effec- community programs around 06 07 08 09 10
tive partnerships to fight a disease the world. YEAR 06 07 08 09 10
like malaria,” said Alan Kleier, manag-
ing director of Chevron’s Southern
Africa operations in 2010. “We intend
to continue working with the Ministry For additional information, please visit Chevron.com/SocialInvestment.
of Health and other partners toward
prevention and treatment.”

Left: Prompted by Chevron’s local

content program, NASA Comercial
Importação e Exportação. Lda. partici-
pated in supplier development training
to support the oil and gas industry.
Nascimento Alberto is the managing
director of NASA. Right: Joaquina
Manuel’s business was expanded with
Chevron-supported microfinancing.

13
 97% 245,000 60%
reduction in flaring at California students or more of the water
the Richmond Refinery benefited from the Richmond Refinery
has been achieved Chevron’s partnerships uses daily is treated
since 2007 in 2010 or reclaimed

Through DonorsChoose.org, Chevron provides funds to Nystrom Elementary School in

Richmond, California. Here, students observe butterflies during a science project.

14
The century-old relationship between Chevron
and the city of Richmond is on a new path to
strengthen the company and the community.

California, United States:

Finding Common
Ground in Richmond
Chevron and the city of Richmond, “We listened to those concerns,” said
California, share a rich history that Mike Coyle, refinery general manager,
stretches back more than a century. “and in 2008, we began efforts to
The refinery sits on about 2,900 acres strengthen local relationships. This is
(1,174 ha) 15 miles (24 km) north- helping us overcome challenges that
east of San Francisco and was built affect our business and the community.”
before Richmond was incorporated
in 1905. Richmond then was a small We commissioned an independent
but growing industrial area of about nonprofit organization to interview
2,000 people. Today, it’s a city with community leaders. Coyle said the
a diverse economy of industrial, tech- results proved enlightening. Among the
nological and maritime businesses findings: Citizen groups and nonprofit
and 103,000 residents. leaders felt that our community inter­
actions had decreased and that people
Together — through booms and reces- were unaware of our long history of
sions, 19 U.S. presidents, and economic involvement. Many wanted us to be
and social changes — the relationship more active in helping the city address
between the refinery and the people social and economic problems.
of Richmond has evolved. Over the
past two decades, there has been a As a result, we are in the midst of an
growing interest in refinery activities. effort to renew and strengthen our
Some ­citizens have expressed concerns relationships. We meet regularly with
about insufficient communication on residents and leaders, and based on
issues such as community support, their input, we’ve invested in job crea­
emissions and flaring. tion, public safety and K–12 education.

15
 Contra Costa Unified School District.
“There’s a deep connection between
Chevron and our students. Working
together on science, math, engineering
and other programs, we’re changing
the student culture to raise expecta-
tions so that our students see college
as the next step after high school.”

Harter said program support instills a

sense of optimism that can start with
something as simple as new micro-
scopes. Science teacher Catherine

Chevron Humankind Vanier needed lab materials to teach

cellular biology to her seventh grade
students at Richmond’s Lovonya
DeJean Middle School. With the help
Our employees are active in Throughout our opera- began in 2008, 19,000
nonprofits that strengthen tions in the United States, participants plus com- of Chevron’s Fuel Your School program
communities where we live employees participate in pany matches contributed and DonorsChoose.org, Vanier was
and work. In Richmond, for Chevron Humankind, the more than $74 million able to buy the sorely needed sup-
example, we mentor high company’s U.S. ­employee to support more than plies. In addition, the school received
school students interested and retiree giving and 12,000 nonprofits.
a $25,000 Chevron classroom grant.
in science, engineering, volunteer program. Contri­
math and other technical butions made to nonprofits Above: Chevron employee As a result, Chevron “has made a
careers; serve meals at through the program are Brent Tippen volunteers significant difference in the education
local homeless shelters; generally matched dollar in a class to teach English of our students for years to come,”
and participate in commu- for dollar by the company. as a second language in Vanier said.
nity improvement projects. Since ­Chevron Humankind Richmond.

Our focus on supporting STEM (science,

technology, engineering and math)
education in California has resulted in
We also increased transparency. We more than 245,000 students and 3,900

70%
responded to the call for information teachers benefiting from our commu-
by creating public communications nity programs in 2010.
platforms, and for the first time in
30 years, we held an open house and
tour to allow the community to see our reduction Another priority that residents voiced
was economic opportunity. Chevron
operations for themselves. The com- in regulated air responded by supporting nonprofit
munity had the opportunity to engage ­emissions has been organizations that increase local
with us directly, and we could clarify achieved at the refinery employment.
misconceptions about our operations.
For example, we awarded the non-
Investing in Our Community in 2010 to nonprofits in Richmond and profit Stride Center a $211,000 grant
In West Contra Costa County, unem- the county for education, youth leader- in 2009 to create a job-training
ployment is more than 18 percent. ship programs, economic development program. David Benjamin, once an
Twenty-two percent of families in and job training. But our investment in unemployed high school dropout, now
Richmond have incomes below the the community goes beyond financial has a promising future in technology
U.S. federal poverty level, and 40 per- contributions. after receiving computer training from
cent of adults did not graduate from the center. “I wasn’t doing too much
high school. “Support from Chevron and its volun- with my life and was in and out of trou-
teers comes with accountability and ble,” he explained. Now, he said, he’ll be
To help the community address these an expectation of mutual benefit,” said qualified for jobs in computer technical
challenges, we granted $3.7 million Bruce Harter, superintendent of West support and software installation.

16
 The
Environment

Our efforts to reduce

flaring and increase
Above: The marshland at the refinery is a nourishing habitat for protected and water efficiency in
endangered species. Great blue herons (left), egrets and mallards are some of Richmond illustrate our
the animals that make it their home. continued commitment
to minimize pollution
and waste, conserve
Improving Operations enough drinking water to serve about natural resources, and
We continually strive to minimize air a quarter of Richmond’s population reduce the environ-
emissions and waste, use resources and could reduce severe rationing
and energy efficiently, and minimize in future droughts. “This coopera-
mental impact of our
environmental impact. tive effort,” said Lesa McIntosh, an operations.
elected board director of EBMUD,
The Richmond Advanced Recycled “will benefit water customers well Across the company, we devel-
Expansion (RARE) Water Project is into the future.” oped a corporate environmental
one example of our collabo­rative stewardship process that pro-
approach. In drought-prone California, Refinery air emissions have been a vides a consistent, systematic,
fresh water has always been a valu- source of concern for the community. risk-based approach to manag-
able commodity. Population growth By installing new technologies and run- ing aspects of the environment,
and stringent environmental regula- ning plants more efficiently, we have including air, water, biodiversity
tions have increased its value. Water reduced regulated air emissions by and waste.
is also an essential component in oil 70 percent since the 1970s. A refinery-
refining, with each gallon of oil refined wide flare-minimization program that For example, in 2010, we devel-
requiring one gallon of high-quality began in 2007 has helped decrease oped an integrated, corporatewide
water. We are the San Francisco flaring by more than 97 percent. As the freshwater management plan
Bay Area’s largest refinery and thus region’s largest refinery, the Richmond to enhance current activities on
the largest water customer for the Refinery represents approximately water stewardship.
East Bay Municipal Utility District 38 percent of oil refining capacity in
(EBMUD), requiring about 11 million the Bay Area but less than 1 percent
gallons a day. of the volume of vented gas flared
in 2009.
To reduce water use, the refinery and To learn more about our environ-
EBMUD completed a plant in 2010 to While we have made progress, there is mental stewardship, please visit
treat municipal wastewater for our still work to be done. “Reestablishing Chevron.com/Environment.
steam-producing boilers. Each day, a strong relationship and trust won’t
RARE sends 3.5 million gallons of happen overnight, and we are deeply
treated wastewater to the refinery, committed to fulfilling that goal,” Coyle
in addition to the 4 million gallons said. “We’ve recently taken some sig-
of reclaimed water already used in nificant steps, but this commitment is a
the refining process. RARE saves marathon, not a sprint.”

17
Kazakhstan:
Sea of Opportunity
In 1979, geologists discovered a 1-mile-thick (1.6-km) oil field
near the windswept Caspian Sea. They named it “Tengiz,”
Kazakh for “sea,” a fitting description considering its location
and potential.

Today, Chevron is Kazakhstan’s “If you want to do business here, or A Commitment

largest private oil producer, holding anywhere else, you have two respon- to Human Potential
stakes in the nation’s two biggest sibilities — business and community,” Longtime Kazakhstani employees still
oil-producing projects — the Tengiz said Jay Johnson, president of talk about adapting to Chevron’s busi-
and Karachaganak fields. We hold a Chevron Europe, Eurasia and Middle ness and engineering standards. Berik
50 percent interest in Tengizchevroil East Exploration and Production Ltd. Dyussenov, TCO’s Health, Environment
(TCO), which operates the supergiant “We satisfy both by encouraging our and Safety coordinator, said stand-
Tengiz Field. Kazakhstani employees to continue ards today are more stringent than
to develop their skills. That is why we what he saw during Tengiz’s infancy.
Our commitment to the region began work closely with local schools and uni- Chevron’s decision “to partner with
in 1993 with the formation of TCO and versities. As the community benefits, Kazakhstan on the Tengiz project was
the five-year, $50 million Atyrau Bonus so does our business.” made shortly after Kazakhstan’s inde-
Fund that developed infrastructure pendence,” he said. “The partnership
projects. Since then, we have continued At year-end 2010, 85 percent of TCO’s brought new opportunities to us work-
to cultivate opportunities that result workforce was Kazakhstani. TCO spent ing in Tengiz and contributed greatly to
in economic and social change for nearly $1.35 billion on Kazakhstani our country’s economy.”
many Kazakhstanis. Our business is services and materials. Ongoing train-
enhanced by strong local suppliers and ing and education programs contribute
a skilled workforce. to the high number of Kazakhstan
citizens among TCO’s workforce and
in leadership positions.

18
 85% 23 $645
of Tengizchevroil’s
workforce in 2010 was
technical universities
in Kazakhstan were million
Kazakhstani introduced to an energy has been spent by
efficiency course Tengizchevroil on social
developed by Chevron programs since 1993

Gulbarshyn Matniyazova (left) and Kulyan Zhangutty are participants and trainers in the
Chevron-sponsored Kazakhstan Artisan Business Development Program. Here, they are
creating felt souvenirs for the Olympic Council of Asia’s 2011 Winter Games.

19
 intern explored ways to improve the
injection performance for disposing
of the field’s wastewater.

“My internship helped me apply

the theoretical knowledge I obtained
in college and expand my under-
standing of petroleum engineering,”
said Texas A&M graduate Merey
Shinikulova, now a TCO production
engineer. “I worked on interest-
ing and challenging projects, and

University Partnership Program I was impressed that my projects

were actually used after I left the
internship.”
Chevron’s University In the United States, United K­ ingdom. Further
Partnership Program we support more than efforts are under way to Of the 12 new reservoir manage-
engages with key universi- 75 schools in areas critical finalize partnerships with ment employees in 2010, 11 came
ties throughout the world to our energy future, such universities in Angola and from the program. Three of them
by providing scholarships, as engineering, earth to explore partnerships in completed master’s degrees at
grants and employee science, finance, infor- Poland and Bangladesh.
the Colorado School of Mines with
involvement. Through these mation technology and We also pair programs at
efforts, we have provided environmental science. world-class institutions with funding from Chevron’s University
approximately $18 million in These programs include less developed ones in order Partnership Program.
funding per year, support- efforts to increase minority to strengthen the faculty
ing research and academic participation. and curriculum of the less Supporting Business
excellence to help develop developed programs.
Development
the professionals needed Internationally, we focus
in the energy industry. We our involvement in locations Above: The student chapter Fostering emerging small businesses
consider these educational of our strategic operations, of the KazNTU Society of and suppliers is an important goal
partnerships also to be including Indonesia, West­ Petroleum Engineers plans that we and our government and
­strategic investments in ern Australia, Kazakhstan, for the 8th International Oil nongovernment partners share.
local communities. Thai­land, Brazil and the and Gas Youth Forum in 2011.
Since 1997, TCO has provided more
than $7.8 million to small business
development loan programs that
have helped entrepreneurs in agri-
During his career, Dyussenov visited Development. This new course was culture, catering, and medical and
Chevron facilities across the United introduced to all 23 technical univer­ community services.
States and Canada and credits Chevron sities in Kazakhstan.
programs for offering Kazakhstani Jay Johnson cited Byelkamit, a local
specialists an opportunity to receive In 2010, TCO began working with company that has been working
state-of-the-art training and learn best Kazakhstan’s Bolashak (“future” with TCO since 1997. In addition to
practices in environmental safety. in Kazakh) program, which allows numerous other projects in 2009,
talented students to study abroad Byelkamit was the prime contractor
Our program at the Kazakh National with full government scholarships. on a large fixed-roof crude-oil storage
Technical University (KazNTU) Mike Sullivan, a reservoir surveillance tank and employed 600 local workers
started in 2007 and has provided coordinator, began an aggressive at peak construction. Prior to this
scholarships for 150 graduate and program to recruit Bolashak students project, a Kazakhstani contractor had
undergraduate students. Working with for internships. never built a tank this large, a new
the university and international and capability for the country’s industry,
local environmental nongovernmental Students were paired with senior developed with TCO’s help.
organizations, we introduced a major ­mentors at TCO and were given
addition to the country’s curriculum: a problem that required original “We prefer to buy locally whenever
Energy Efficiency and Sustainable research to solve. For example, one we can,” said Johnson. “Byelkamit

20
produces high-quality equipment to
international standards, delivers its
products reliably and sells them at
competitive prices.” Diversity
Fueling Social Programs
Since 1993, TCO has invested more
than $645 million in social programs
in the Atyrau Oblast. In 2010, TCO We need the diverse talents and full
spent $20 million on its Egilik (Kazakh
for “benefit”) social infrastructure potential of every individual employee in
program, and Karachaganak Petroleum order for Chevron to excel as a leader in
Operating, in which Chevron holds a
20 percent interest, also contributed
the global marketplace. We recognize the
$20 million to social programs in the benefits of maintaining a workforce that
Western Kazakhstan Oblast.
reflects the composition of the communities
We and our affiliates have continually where we operate.
supported health programs, including
current efforts to combat high rates Our commitment to diversity and • We encourage managers and
of cardiovascular disease, a leading inclusion is more than words, more selection teams to hire from a
cause of death in Kazakhstan. than a set of goals. Our actions diverse slate of candidates who
speak for themselves. represent a range of backgrounds.
The Kazakhstan Association of
Family Physicians and TCO are part- • Approximately 22,500 Chevron • We have a robust supplier
nering to educate the local medical employees participate in Employee diversity program. In 2010 in the
community and public about how to Networks, which help eliminate United States, we spent more
prevent cardiovascular disease. In barriers, improve communication than $2 billion on products and
one program, more than 100 doctors among employees and cultivate services from small businesses.
are being trained to diagnose and links with communities. We spent $364 million on products
improve treatment. Another program, and services from women-owned
for doctors at the Atyrau Cardiovas- • Diversity councils help promote a businesses, and $254 million
cular Hospital, provided mentoring work environment in which every on products and services from
by surgeons from the Astana Cardio­ employee has the opportunity to minority-owned businesses.
vascular Center. contribute to company goals.

Left: In 2010, TCO funded cardio- For additional information, please visit Chevron.com/Diversity.
vascular disease training for Atyrau
doctors at the Astana Cardiovascular
Center. Here, radiography surgical
nurse Aizhan Saurbekova assists dur-
ing a medical test. Right: At Chevron’s
polyethylene pipe plant in Atyrau, all
employees are Kazakhstan ­nationals.
Chevron plans to build a new plant
in Atyrau to produce valves that
currently have to be imported. From
front to back are operator Marat
Imangaliev, manufacturer’s representa-
tive Jorg Kahl and operator Alimzhan
Kuanshaliyev.

21
Chevron is a recognized leader in deepwater drilling. Our success in
the deepwater Gulf of Mexico began more than 10 years ago when we
tapped the Genesis Field 2,600 feet (792 m) below the water’s surface.
Throughout that time, we have continued to drill safely by combining our
technological know-how with a proven organizational culture of safety
that begins with management and extends to employees and contractors.

U.S. Gulf of Mexico:

Oceans
of Promise

22
 2010 13,000 27%
was another year with Chevron employees is the approximate
no recordable incidents live and work in the amount of U.S. oil ­supply
for Chevron’s Gulf of Gulf States that is produced in the
Mexico shorebase and Gulf of Mexico
maritime ­transportation
operations

Transocean’s Discoverer Clear Leader is on lease to Chevron in the Gulf of Mexico.

Workers are seen here on the drillship’s helipad.

23
Below the earth’s surface under in 2010 after the BP Macondo well
more than 2,000 feet (610 m) of incident in the Gulf of Mexico. “­Chevron

375
water rests a vast promise of global will adopt any new standards it doesn’t
energy. Below this depth, the global already apply.” He also stressed our
oil industry tripled its offshore capacity commitment “to advancing safe opera-
to 5 million barrels a day in the past tions through enhanced prevention,
decade and ultimately could double better well containment and interven-
deepwater wells have
that number by 2015. In the United tion, and improved spill response.”
States, production in the outer conti- been drilled safely by
nental shelf, almost all of which is in Chevron around the Practicing Safety
the Gulf of Mexico, currently accounts In 2010, the company had a record-low
world since 1987
for 27 percent of the nation’s oil and injury and illness rate.
15 percent of its natural gas.
“At Chevron, one goal overrides all
While offshore resources hold the ­others: making sure everyone goes
promise of energy and profit, there are home safe every day,” Watson said.
risks that have to be addressed.
One example of our safety culture
“We know we can only operate with is our regularly held “safety stand-
the public’s confidence that the energy downs” with drilling personnel
we need will be produced safely and and rig crews to reinforce safety
reliably,” said Chevron Chairman and practices. We share these exten-
CEO John Watson. “We have a very sive reviews of drilling processes,
personal stake in operating safely well-control contingency plans and
because it is our home, too.” risk management plans across our
global operations.
One Team, One Goal
Our commitment to safe drilling Since 1987, we have safely drilled
begins with a corporatewide dedica- 375 deepwater wells around the
tion to operational excellence. This Above: Drilling engineer Jeremy Sokol world. Deepwater drilling is par-
emphasis translates into specific (left) and subsea operations engineer ticularly challenging because of the
programs and standards, such as Zachary Schneider do a ­routine safety pressures involved, but our expertise
empowering ­workers to stop work walk on the Discoverer Clear Leader. with blowout prevention was evident
whenever they sense potentially during the task force work. A blowout
unsafe operations, thus creating lay- preventer (BOP) is a series of valves
ers of protection in drilling practices, while the reservoir itself is more than that prevent a well’s fluids from escap-
well design and construction. 23,000 feet (7,010 m) below the water’s ing from the well. We have an in-house
surface. Our team had to upgrade eight team of employees dedicated solely to
David Payne, Chevron’s vice president separate technologies just to finish understanding BOPs and subsea well
of Drilling and Completions, said, “We its test well. interventions. We also operate our
address anticipated risks before we own well-control school, have drilling
start, and we’re prepared to handle any In 2010, we helped lead the joint- specialists overseeing every major well
others that come up during drilling.” industry task force that made recom- and constantly partner with suppliers
mendations to the U.S. Department of on equipment quality. And we have the
This approach was crucial at the the Interior to raise industry stand- only operator-owned cement lab in
Tahiti Field. Discovered in 2002, ards on offshore equipment, operating North America.
Tahiti, which is estimated to contain procedures and subsea well control to
400 million to 500 million barrels of even higher levels. Operating a deepwater rig costs more
oil-equivalent recoverable reserves, than $1 million a day, and activat-
represented a complex and dramatic “A majority of these standards are ing the BOP causes delays. “But
challenge because it lies in more already embedded in Chevron’s opera- we’d rather activate a BOP even
than 4,000 feet (1,219 m) of water, tions,” Watson told the U.S. Congress when it isn’t necessary than risk a

24
blowout,” said Payne. He sees BOPs
like seat belts: It’s important that they
exist and are used, but it’s always
­better if they’re not needed. Operating
Rick Graff, who spent the past 13 years
on Chevron’s Gulf of Mexico rigs as a
With Excellence
deepwater drilling engineer, said his
first boss taught him constant respect
for high-pressure reservoirs in deep
water. “We take great care as we drill
to keep them safely contained with cas- Our industry-leading performance is due to
ing, cement, drilling mud and constant
monitoring,” Graff said. “In my view, our commitment to excellence, from project
the human element is just as important design through operation.
as the mechanical.”

Chevron’s Operational Excellence know what it means conceptually.

Management System (OEMS) was We are incredibly fortunate to work
‘At Chevron, developed to systematically man- in an enterprise where protecting
one goal overrides age all aspects of safety, health, people and the environment is both
all others: making the environment, reliability and a practice and a heartfelt value,”
efficiency to achieve industry- he said.
sure everyone leading performance. The system
goes home safe provides specific expectations for Over the past decade, our safety
every day.’ all employees and contractors to record has gone from trailing
participate in promoting safety, the industry to leading it. Our
caring for the environment, and Days Away From Work Rate has
John Watson
making sure the company’s opera- dropped 90 percent, and nearly
Chairman and CEO
tions run reliably and efficiently. 800 fewer workers were injured in
2010 than were injured a decade
Chuck Taylor, vice president of ago. Since 2001, we’ve reduced
At our Covington, Louisiana, operations Corporate Health, Environment the number of spills by 50 percent
center, offshore installation managers and Safety in 2010, said protecting and reduced our spill volume by
such as Mark Davis train on a simula- people and the environment is a nearly 80 percent. And since 1992,
tor that is unique to our industry. The company priority and a core value. we’ve improved our own energy
simulator mirrors high-tech control “Many companies say this and efficiency by 33 percent.
rooms on production platforms in the
Gulf of Mexico.
For additional information, please visit Chevron.com/OE and
The training creates scenarios as Chevron.com/OEMS.
diverse as fluctuating pressures on
equipment, changing flow rates, and
loss of communications between com-
puter and equipment.

Right: Transocean ­drillship Discoverer

Inspiration in the Gulf of Mexico is
capable of drilling wells in 12,000 feet
(3,658 m) of water to a total depth of
40,000 feet (12,192 m).

25
 “The simulator hones our skills to

Gulf Relief operate safely and is a unique tool

to improve response through practice
during the training,” said Davis. “The
We provided $10 million to “Our collaboration with which supported hard- simulator is not just about reading a
five Gulf Coast community Chevron allowed us to hit commercial fishing procedure, it’s about doing it.”
organizations that par- inform and mobilize volun- communities along the
ticipated in environmental teers across the country,” Louisiana coast, where
and economic relief, spill said Audubon President we have major facilities; Stop-Work Authority
response and cleanup after David Yarnold. “We provided and Greater New Orleans, The authority to stop work on a
the BP Macondo well inci- much needed relief efforts Inc., which applied funding project is another critical factor in
dent in the Gulf of Mexico. and built a corps of citizen to economic recovery in keeping workers safe, and this author-
scientists committed to the concert with the Louisiana
ity extends to every employee and
One group was the long-term conservation of Economic Development
National Audubon Society. coastal bird populations and Department. contractor. It includes five steps: Stop
Our Pascagoula, Missis- habitats across the Gulf.” the unsafe or at-risk act with those
sippi, refinery helped the “These community part- potentially at risk, notify a supervisor
group establish the Gulf Other groups we funded ners had immediate needs if he or she is present, address the
Coast Audubon Volunteer were The Nature Con- to mobilize and respond
issue, resume work after the issue
Response Center to man- servancy and America’s to impacts on local
age more than 35,000 WETLAND Foundation, residents,” said Warner has been resolved, and share what
inquiries by volunteers which used funding to Williams, vice president of is learned with others.
wanting to assist in Loui- address coastal restora- Chevron’s Gulf of Mexico
siana, Mississippi, Florida tion; the Committee for operations, “and we con- Barry Smith, who was the offshore
and Alabama. Plaquemines Recovery, tinue to work with them.”
installation manager for Chevron’s
Tahiti project in 2010, said the team
reviews stop-work cases before every
shift. “We discuss the incident to learn
Every employee and contractor from it and to positively recognize
those who used stop-work author-
has the authority and responsibility ity,” Smith said. “We want everyone
to understand there are no negative
to stop work when he or she sees repercussions for taking the time to do
things right.”
an unsafe act or condition.
During the Tahiti hookup and com-
missioning phase, which lasted eight
months, the Tahiti workforce logged
stop-work authority more than 1,400
times, about five a day, for issues as
diverse as hurricane-force weather
and a shipping container that had
arrived without a proper seal. Smith
said there were almost 120 work stop-
pages onboard Tahiti in 2010.

“On Tahiti, I estimate that 60 percent

to 70 percent of our work stoppages
are called by our contractors,” Smith
said. “This is a testament to our safety
culture and to our business partners’
Above: Offshore installation managers John Naquin (left) and Mark Davis train understanding that when we say it, we
on simulators at Chevron’s Covington, Louisiana, operations center. The simula- mean it. Our contractors notice that
tors replicate the control room on the Blind Faith production platform. we ‘walk the talk.‘”

26
Executive Interview

Gary Luquette
President, Chevron North America
Exploration and Production Co.

Gary Luquette became president of Chevron North America Exploration

and Production Co. in April 2006. He chaired the governing board that
oversaw four joint-industry task forces formed after the BP Macondo well
incident in the U.S. Gulf of Mexico.

What Why When

What was the biggest Why is it important that When will the results of these
challenge you faced in we return to work now task forces become a reality?
the aftermath of the BP in the Gulf of Mexico?
Macondo well incident? We have made significant progress.
Oil and natural gas will be primary In addition to submitting numerous
While this incident was the responsi- energy sources for decades to come. reports on ­lessons learned to the
bility of a single operator, the entire Production in the outer ­continental U.S. Department of the Interior, we
industry felt the impact. We needed shelf — almost all of which is in the made recommendations in such key
an immediate and unified industry Gulf of Mexico — accounts for 27 per- areas as well design, cementing and
response to learn from this tragedy cent of U.S. oil and 15 percent of U.S. safety. Many of these recommenda-
and make sure it would never be natural gas supplies. Chevron alone tions evolved into regulations that
repeated. That’s why the industry has more than 13,000 ­employees are helping companies operate at a
called together hundreds of experts living and working in Gulf States. We higher standard.
to form four joint-industry task forces provide jobs, economic growth and
to identify tangible improvements that government revenue. And even after we submit our final
could be made in blowout prevention, reports from the task forces, the
well intervention and oil spill response. industry will continue to work together
I was asked to chair the governing to improve operations and incident
board that oversaw their work, and response. We committed to a number
I assumed this role because I felt of initiatives that will show sustained
strongly that the industry needed to improvements through technology,
take quick and decisive action in order research and development, and train-
to earn the right to return to drilling in ing. We are safer today than we ever
the deepwater Gulf of Mexico. have been, and we will continue to
improve in the years ahead.

27
Nigeria:
Healthy Employees,
Healthy Community
Chevron’s business interests and community interests
are linked, so our efforts to fight disease benefit all.

Chevron Nigeria Ltd. reaches out nongovernmental organizations, Reducing the stigma associated
each day to people in Nigeria’s bus- youth groups, congregations, shop- with the HIV infection is important to
tling cities and small towns to improve keepers, and others active in the battling it, according to Okala. “A few
health through workplace and com- diverse communities of Nigeria. months ago,” she said, “a colleague
munity-based HIV/AIDS, malaria and said he had overcome his fears and
tuberculosis programs. While combat- A fundamental element to operating had an HIV test. He tested positive,
ing disease, we encounter prevailing successfully is a healthy workforce. but in the same breath added that he
myths and misconceptions, a social “The threat of HIV/AIDS to our wasn’t worried because he knew he
fabric that leaves women and children ­employees is inseparable from the and his family would be fine, thanks
especially vulnerable, and a geography threat it presents to communities to the training on HIV he’d received
that makes it difficult to reach people. around our operations. Taking a lead from us. When I saw his smile, I knew
position in the fight against AIDS in his case we had made progress.”
“We believe we can make a difference is the right thing to do, and it is good
through our health programs, that business,” said Andrew Fawthrop, Reaching Women and Children
we can save lives and give back hope,” chairman and managing director of In Africa, HIV/AIDS disproportionally
said Femi Odumabo, Policy, Govern- Chevron’s Nigeria and mid-Africa affects women, increasing the risk of
ment and Public Affairs general operations. mother-to-child transmission. Most
manager for Chevron Nigeria Ltd. of the 57,000 babies born HIV-positive
Information, Creating Hope in Nigeria each year become infected
Many of the programs Chevron As medical protocols for HIV/AIDS by their mothers. Through our invest-
Nigeria Ltd. supports are part of have evolved, communication, educa- ment in a Global Fund to Fight AIDS,
our global strategies to help com- tion and access remain hurdles. “While Tuberculosis and Malaria grant in
bat ­disease. In Nigeria, Chevron’s many people in urban centers are Nigeria, we have helped 50,213 HIV-
partnerships and programs target informed, you still meet people in rural infected pregnant women receive
employees, contractors, suppliers areas who don’t know anything about a complete course of antiretroviral
and communities. We work together the ­disease,” said Dr. Chinwe Okala, a treatment to prevent mother-to-child
with local leaders, governments and Chevron public health physician. transmission. And to empower women

28
 $5 million 50,000 400
in scholarships was HIV-infected pregnant communities benefit
awarded by Chevron and women have received from programs created
its Agbami partners to treatment to prevent by Global Memorandums
students in medical fields mother-to-child trans- of Understanding between
mission of the disease Chevron, communities
and state governments

Employees at the Escravos gas plant in the Niger Delta region include (from left) electrical
technicians Abigail Bateren and Akinfe Samuel, maintenance technician Adewale Adegbayi,
and control systems technician Otokini Doore.

29
 who have HIV/AIDS, we provide

Empowering Communities microcredit to help them develop

employment opportunities.
for Their Own Progress Promoting Wellness
We partner with the National Agency
for the Control of AIDS to deliver a
Since 2005, we’ve engaged (RDC) that advocates for government budgeting,
various communities near community interests and lobbying processes and workplace wellness program to small
our operations through leads spending decisions. community relations. In and medium-size businesses in Lagos.
Global Memorandums of Each RDC’s subcommittees 2010, 849 people had One of these organizations is the Lady
Understanding (GMOUs). monitor accounting, con- been trained. Mechanics Foundation, an auto-repair
The GMOUs are multiyear flict resolution and project
training program that empowers young
agreements between the management. The benefits from the
communities, Chevron and GMOUs now reach more women. Along with learning a skill, the
state governments. The participatory, capacity- than 400 communities, women learn about disease prevention
building approach is visibly villages and chiefdoms, and treatment. Peer educators, includ-
Local participation in the changing these communi- involving 600,000 people ing employee volunteers from Chevron,
company’s social invest- ties. Since 2005, Chevron in economic, health, educa-
provide disease-­awareness training
ment decisions is vital. “It’s Nigeria Ltd. has disbursed tion and environmental
how we’re giving greater more than $56.7 million to projects. In 2010 alone, to the staff, who in turn help educate
ownership of development the RDCs for a wide range we contributed more than the community.
activities to local communi- of projects, including build- $10 million to eight new
ties,” said Dennis Flemming, ing bridges, constructing GMOU projects. Efforts include distributing mosquito
community engagement solar-powered water facili-
nets to fight malaria. During a visit
advisor for Chevron Nigeria ties, equipping hospitals Also in 2010, we launched
Ltd. in 2010. with medical supplies and the Niger Delta Partnership to Ejigbo (a Lagos suburb) to demon-
leading youth workshops. Initiative, with an initial strate net installation, Chevron and
The eight GMOUs cover investment of $50 million Lady Mechanics volunteers visited
projects in five states To further improve the for economic develop- a mother in her home. “Today she is
of the Niger Delta. Each RDCs’ effectiveness, in ment, conflict resolution
showing others how to install the net,
agreement has a Regional 2010, we ran a series of and capacity building in
Development Committee workshops on subjects such the region. and this is creating a multiplier effect
as financial management, in awareness and good health care
practices,” said Sunday Okegbemiro,
Chevron Corporate Responsibility
coordinator. “Knowing that these

Supporting Women and Children relatively inexpensive nets could very

well save someone’s life is remarkable
and unforgettable.”

“Chevron operates in some executive vice president and health. In coun- Different Roads to Treatment
of the most challenging, for Policy and Planning. tries such as Brazil and The Chevron-sponsored Riverboat
complex and dynamic Kazakhstan, training
Clinic, now a decade old, has become
places in the world. We The United Nations programs resulted in
believe that empowering Millennium Development job placements, and in crucial in delivering primary health
women and children with Goals 3, 4 and 5 were Bangladesh, programs led
the resources, knowledge established to empower to handmade goods being
and tools they need to be women and children sold in markets around the
successful members of through gender equality world. We contribute to the
their communities creates and maternal and child Global Fund to Fight AIDS,
healthier communities. health. Our efforts align Tuberculosis and Malaria,
And healthy communities with these goals. whose grants have created
enable us to form long- anchor programs that
term relationships in the Internationally, our initia- produce results in AIDS
geographies in which we tives to promote gender education, treatment and
conduct business,” said equity have focused on train- reducing mother-to-child
Rhonda Zygocki, Chevron ing, economic ­development transmission rates.

30
care and disease intervention to
thousands of people in 33 towns along
the Escravos and Benin rivers in the
Niger Delta. The floating clinic carries
doctors and nurses, who bring medi-
Human Rights
cines and perform surgeries. Services
include prevention education, malaria
programs for pregnant women and Our commitment to respecting human rights
children under 5, and free immuniza-
tions for approximately 1,000 women is embodied in The Chevron Way. To further
and children yearly. this commitment, we adopted a Human Rights
We annually give $1.5 million for
Policy in 2009.
the boat and medical supplies, and the
Delta State government provides the The policy, which replaced our community investment programs
medical staff. Without the riverboat 2006 Human Rights Statement, is and participation in voluntary
docked in these communities, the near- now a standing corporate policy in initiatives are complementary and
est facility would be a hospital more our Business Conduct and Ethics help reinforce our commitment to
than 62 miles (100 km) away, accessible Code. All employees are required respecting human rights in each
only through serpentine delta creeks. to comply with the policy. In 2010, of these areas.
we developed tools and processes
Education: A Disease-Fighting associated with implementing the For example, human rights con-
Investment policy, and full implementation is siderations are embedded in our
To address Nigeria’s need for skilled expected by 2013. These efforts Operational Excellence Manage-
health professionals, we and our are governed by an executive lead- ment System; our Environmental,
Agbami deepwater partners created ership body and guided by a global Social and Health Impact Assess-
the merit-based Agbami Medical cross-­functional team. ment; our leadership in industry
Professionals Scholarship. Over the collaboration; and our participa-
past two years, Chevron gave $5 mil- The policy addresses four tion in the Voluntary Principles
lion to students of medicine, dentistry, human rights areas relevant to on Security and Human Rights.
nursing and laboratory sciences from our business: employees, secu- Ongoing engagement with our
the Delta, Ondo, Bayelsa, Rivers, Lagos, rity providers, the community stakeholders provides us with
Imo, Akwa Ibom, Abia, Cross River and and suppliers. Our corporate ­valuable input on the implemen­
Edo states. The deepwater partners policies, management processes, tation of our policy.
also spent $6 million to build and
equip 20 laboratories across Nigeria,
in institutions from grammar schools
to universities. For additional information, please visit Chevron.com/HumanRights,
Chevron.com/ChevronWay and Chevron.com/BusinessEthics.

Opposite page: Dr. Chinwe Okala, a

Chevron public health physician in
Nigeria, educates employees and the
community about HIV/AIDS and malaria.
Left: Imagbe Igbinoba is general man-
ager of Light Level, a small business
that benefited from wellness training.
Right: Favour Thompson, a member of
the Ejigbo community in Lagos, attends a
wellness session offered by peer educa-
tors — employee volunteers from Chevron
and the Lady Mechanics Foundation.

31
 Indonesia:
Cultivating
Gotong Royong
In Indonesia in 1924, we took our first significant step
in exploration and production in Asia. So, too, began our
journey of shared progress in the region.

97% 4,600 No. 1

of Chevron managers small businesses is Chevron’s position
and employees in were helped by Chevron as the world’s largest
Indonesia are nationals in several provinces in producer of renewable
Indonesia geothermal energy

Ki Odo’s sheep breeding business is helped by Chevron’s support of small businesses

in the Pamijahan subdistrict of Bogor Regency, near Chevron’s geothermal operations.

32
In Indonesia, two simple words, that supply our operations, we help Supporting Local Businesses
gotong royong, convey the complex support a diversity of ventures, such Our investments in Indonesia create
idea of cooperation, of offering assis- as agriculture, fisheries and home- a diversity of jobs. About 97 percent
tance, sharing burdens and working based businesses.” of our employees and managers are
with others. For decades, we have Indonesian nationals, while many other
embraced gotong royong, working with Chevron’s operations range from nationals are employed by our local
Indonesians to strengthen economic crude oil and natural gas to geo- suppliers. These businesses play an
opportunities that benefit operations thermal projects in West Java. Our important role in providing the services
and local communities. Salak and Darajat projects, together and supplies we need to operate.
with our geothermal projects in the
“Helping improve social and economic Philippines, make us the world’s larg- Through education, training and fund-
conditions beyond our operations est producer of geothermal energy, ing, we work with businesspeople such
promotes a better standard of living a renewable resource that turns the as Erinawati, a maintenance contractor
and expands our ability to conduct earth’s steam to electricity while in Minas who wanted to become part
business,” said Steve Green, manag- producing almost no greenhouse of our supply chain. She said, “At first
ing director of Chevron’s Indo­Asia gas emissions. I knew nothing about projects like this.
operations in 2010. “In addition to Then I attended a workshop organized
providing opportunities to businesses by Chevron. We were shown how to
prepare proposals and bids.”

33
Erinawati learned that to work with from $1.3 million in 2001 to more than “Microfinancing is about enabling
Chevron, businesses must meet certain $123 million in 2010. people to build businesses and employ
standards of production, technology others, resulting in stronger com-
and safety. She earned a Chevron Local Since LBD began, more than 815 small munities,” said Ted Etchison, Chevron
Business Development (LBD) certifi- suppliers have been certified, 3,600 senior vice president for operations in
cate, qualifying her to bid on contracts contracts have been awarded and 7,200 Kalimantan. “Microfinance is not char-
for fence painting and drainage. “I’m jobs have been created. In all, we have ity. It’s about building capability and
now able to empower not only myself purchased $52 million in local goods empowerment, and it places the respon-
but also the many people on my team — and services. The Indonesian Ministry sibility for success on the participants.
my neighbors and young people from of Energy and Mineral Resources recog- We help plant the seed. The people then
around here,” Erinawati said. nized the success of the program with develop their own livelihoods.”
its Padma Community Development
The LBD program has helped more Award, the second time Chevron has In East Kalimantan and West Java, we
than 4,600 small companies and received this award. partnered with government-owned
cooperatives in Riau, East Kalimantan financial institutions Permodalan
and West Java. Workshops provide Microfinancing Grows Businesses Nasional Madani and Baitulmaal
training in health and safety, environ- Microfinancing provides Indonesians Muamalat to form the Community
mental management, procurement, with business opportunities. The pro- Enterprise Development program,
business ethics, project management, grams we support, through the delivery offering access to low-cost loans and
technology and financial management. of low-cost loans, reach a variety of management training to community-
LBD participants grew their businesses enterprises outside of our operations. based business groups and small
businesses.

“Before [microfinancing], it was dif-

Educating Professionals ficult just to keep my small business
running, but now I can make a tidy
profit,” said Wistiningsih, a vegetable
Since 2001, Chevron has the polytechnic, studying between Chevron, the seller at Petukan Market in Balikpapan.
sponsored Politeknik Caltex construction, electrical governments of Aceh “The money we earn every day can be
Riau, the province’s first installation and comput- and Nias, and the U.S. used as capital to buy vegetables to
polytechnic university. ers — obtaining skills that Agency for International
sell. Thanks to the help we’ve received,
More than 880 students would help them rebuild Development — a second
have graduated, and their communities. About polytechnic opened its my children have been able to go
about 85 percent found 80 percent of these gradu- doors, offering courses to school.”
jobs within three months ates are now employed in in disciplines essential to
of graduation. Aceh, and several started industry, such as electron- In Salak and Darajat, home to our geo-
their own businesses, ics engineering, robotics
thermal operations, we helped establish
Following the 2004 tsunami, employing others. and information technology.
more than 300 students Currently, Politeknik Aceh farmers’ networks, where farmers
from Aceh completed a In September 2008 — has 580 students. The first turn idle land into fields of abundant
three-month program at through a partnership class will graduate in 2011. crops. We provide training, and the

34
Left: Chevron-funded training and
development for local suppliers helped
Erinawati’s maintenance business
qualify to work with Chevron. Renewable
Below left: Darajat geothermal opera-
tions, West Java, Indonesia. Right: Near
Energy
Chevron’s Salak geothermal operations,
Aah Sutiah Elia benefits from a mush-
room farming project that has helped
the local economy since 2007.
To meet the need for affordable and
farmers support and share knowledge reliable energy, the world will have to rely
with each other. In Pasirwangi, Garut on all sources.
Regency, we initiated the pioneering,
mosque-based Muamalat Community
Micro Enterprise program. Currently, While applying new technologies to develop oil and natural gas
four mosques participate, providing resources, we also are investing in renewables.
entrepreneurs with low-cost loans.
We are the world’s largest producer of geothermal energy, and we
Promoting Entrepreneurship continue to explore for more geothermal resources in Indonesia and
We are committed to helping ­create sus- the Philippines.
tainable livelihoods and self-­sufficiency.
Those livelihoods come in many forms. Our investments in renewables focus on technology that can operate at
industrial scale without subsidies. For example, Catchlight Energy LLC,
In Dumai, known for its exquisite Malay our joint venture with Weyerhaeuser Co., is working to commercialize
textiles, we support a program to pre- advanced biofuels made from forest-based resources.
serve the traditional art of weaving. We
provided training, hand looms, and the In California, we are developing and demonstrating solar ­technology
construction of a center and gallery. that will produce steam needed for production operations at our
Coalinga oil field.
In Garut Regency, we support goat
breeding; farmers earn money not only
by selling goats but by selling goat
manure as fertilizer to organic farmers. To learn more, please visit Chevron.com/EnergyEfficiency and
Chevron.com/EmergingEnergy.
In our efforts to preserve the Mount
Halimun Salak National Park, we and
our community partners helped launch
ventures such as organic gardening
and rabbit breeding to help people
develop more sustainable livelihoods.
Traders and craftspeople, for example,
are encouraged to switch from making
furniture from park timber to cultivat-
ing vegetables and fruits.

Each day in Indonesia, we embrace

gotong royong — a chance for business
and communities to work together
and thrive.

35
Additional Information and Data

Our success is driven by our people

and their unrelenting focus on delivering
results the right way — by operating
responsibly, performing with excellence,
applying innovative technologies
and capturing new opportunities for
profitable growth.

Global Geographic Breakdown

of Employees at Year-End 2010

At year-end 2010, Chevron’s worldwide employee staffing North America 46.2%

was 58,267 (excluding 3,929 service station employees). Asia-Pacific 27.3%
This represents a decrease of 3.11 percent over the previous
Africa 14.7%
year. U.S. workers numbered 26,428, and approximately
13.3 percent were represented by unions. Europe/Middle East 8.1%
South America 3.7%

36
 33% 58,267 100%
is the amount Chevron employees worked rating was achieved
has improved its own for Chevron at by Chevron on the
global energy efficiency year-end 2010 Human Rights Campaign
since 1992 Corporate Equality
Index for the 6th
consecutive year

As of year-end 2010, Chevron was the third-largest producer of oil in Argentina. Project engineer
Florencia Rodriguez Aponte and plant supervisor Jorge Nelson Paz are seen here at the El Trapial
Field in western Argentina. In 2010, the workforce in Argentina received 11,000 hours of training.

37
Performance Data

GHG Emissions by Source 1 GHG Emissions by Sector 1 Total GHG Emissions by Type 1, 2
Millions of metric tons of CO2 equivalent Millions of metric tons of CO2 equivalent Millions of metric tons of CO2 equivalent
  Combustion    Flaring and venting    Other   Upstream    Downstream    Other Grid
Direct Indirect Credits Net
2010 41.9 2010 35.6 2010 62.1 —2.9 0.0 59.2
13.4 22.4 2009 60.3 —2.4 —0.9 57.0
3.9 1.2 2008 62.7 —2.4 —1.0 59.2
2009 2009 2007 63.7 —2.9 —0.5 60.3
40.3 31.8
12.2 24.0
2006 65.4 —3.0 —0.9 61.5
4.5 1.1

2008 41.3 2008 34.4

13.2 23.5 Energy Efficiency Performance 3
4.8 1.4 Percentage improvement since 1992 baseline
2007 41.0 2007 35.9
14.6 22.8 2010 33
4.7 1.5 2009 30

2006 39.8 2006 37.1

2008 28

16.4 23.2 2007 27

5.3 1.3 2006 27

Air Emissions 4, 5 Air Emissions by Sector 4, 5 Average Oil Concentration

Metric tons Metric tons in Discharges to Water 6
  Upstream    Downstream    Other Parts per million

VOCs Upstream Downstream Other   Upstream    Manufacturing and Chemicals

2010 248,770 VOCs 2010 215,578 32,732 461

2009 265,819 2009 225,949 39,630 240 2010 13.06
2008 221,734 2008 201,209 18,648 1,878 2.11
2007 260,640 2007 240,716 18,788 1,136 2009 11.28
2006 383,914 2006 357,727 26,100 87 3.87
2008 12.94
SOX
3.73
2010 155,618 SO X 2010 137,676 17,514 428
2007 15.64
2009 142,052 2009 125,520 15,997 536
3.70
2008 125,036 2008 97,731 18,496 8,810
2006 32.03
2007 91,644 2007 63,223 20,451 7,970
4.51
2006 118,210 2006 82,922 25,574 9,714

NOX
2010 135,939 NOX 2010 122,825 11,852 1,262
2009 122,911 2009 110,068 12,133 711
2008 134,785 2008 95,717 12,282 26,785
2007 144,676 2007 121,378 14,041 9,257
2006 138,104 2006 113,001 16,020 9,083

Improvements in reporting methodology during the reporting period make year-to-year comparisons difficult.

Petroleum Spills 7, 8 Petroleum Spills 8 Fines and Settlements 9

Volume in barrels Number of spills Environmental, Health and Safety
Fines and Settlements
  Spills to land   Secondary containment
  Spills to water   Volume recovered

2010 YEAR 06 07 08 09 10
12,139 2010 639
10,390 2009 798 Total number 699 684 564 460 524
2009 9,368 2008 760
7,512 2007 826
2008 17,492 2006 803
14,399
2007 9,245
6,920
2006 6,099
3,923

Footnotes are on page 41.

38
GHG Emissions
In 2010, our total emissions were 59.2 million metric tons of CO2 equivalent, exceeding our goal
of 59.0 million metric tons.1 In 2010, the reporting basis for total GHG emissions Chevron used
was revised to exclude power generation grid credits to align with industry best practices. If the
grid credits of 0.9 had been included, the net emissions of 58.3 would have achieved the goal.
Our GHG emissions intensity in 2010 was approximately 33 metric tons of CO2 equivalent per
1,000 barrels of net oil-equivalent production from our Upstream operations, up from 32 metric
tons in 2009. Our Downstream intensity was approximately 34 metric tons of CO2 equivalent
per 1,000 barrels of crude oil that was input into our refineries, down from 36 in 2009.

Our preliminary goal for 2011 is 60.0 million metric tons of CO2 equivalent. We expect to achieve
further emissions reductions through energy efficiency improvements and reduced flaring
and venting. We also expect normal production levels and emissions to resume in areas where
­disruptions occurred in 2010; and we expect emissions from new facilities that will begin opera-
tion in 2011.

We estimate that combustion of our products resulted in emissions of approximately 418 million
metric tons of CO2 in 2010, approximately 2 percent more than the 410 million metric tons in 2009.
We calculate product emissions based on total 2010 Upstream liquids, gas and coal production.
The emissions factors used are from the American Petroleum Institute’s Compendium of
Greenhouse Gas Emissions Methodologies for the Oil and Natural Gas Industry,2 published
in 2004 and revised in 2009. When compared with the International Energy Agency’s Key World
Energy Statistics (2010 edition), these emissions represent approximately 1.4 percent of global
CO2 emissions from fossil fuels, which is lower than the 1.7 percent of global CO2 emissions when
we first began estimating the GHG emissions from our products in 2002.

Waste
In 2009, we began reporting a total waste metric to track the amount of total hazardous and
nonhazardous waste that is recycled (which includes reused and recovered) from our operations.
In 2010, total recycling was 59 percent of generated hazardous waste and 42 percent of generated
nonhazardous waste.

39
 Performance Data

Total Recordable Incident Rate 10 Lost-Time Incident Frequency 10 Days Away From Work Rate 10
Incidents per 200,000 work hours Days Away From Work incidents and Incidents per 200,000 work hours
fatalities per million work hours

Year 06 07 08 09 10 Year 06 07 08 09 10 Year 06 07 08 09 10

Workforce 0.42 0.35 0.36 0.27 0.24 Workforce 0.50 0.37 0.27 0.25 0.18 Workforce 0.09 0.07 0.05 0.05 0.03
Benchmark 0.59 0.56 0.55 0.40 N/A Benchmark 0.72 0.65 0.64 0.44 N/A Benchmark 0.14 0.13 0.12 0.09 N/A
Employees 0.34 0.40 0.31 0.32 0.22 Employees 0.41 0.48 0.33 0.33 0.17 Employees 0.08 0.09 0.07 0.07 0.03
Benchmark 0.51 0.49 0.47 0.42 N/A Benchmark 0.64 0.57 0.57 0.52 N/A Benchmark 0.13 0.11 0.11 0.10 N/A
Contractors 0.46 0.34 0.37 0.26 0.24 Contractors 0.53 0.33 0.25 0.23 0.19 Contractors 0.10 0.06 0.05 0.04 0.03
Benchmark 0.64 0.61 0.59 0.39 N/A Benchmark 0.78 0.71 0.67 0.39 N/A Benchmark 0.15 0.14 0.13 0.07 N/A

Work-Related Fatalities
Process Safety
In 2010, there were a total of 95 loss-of-primary-containment incidents
of significance (ANSI/API12 Recommended Practice 754 Tier 1) across
the company, compared with 104 incidents in 2009. Of the 95 inci-
dents, 63 occurred in Upstream and 32 in Downstream, which includes
Manufacturing and Chemicals. There were no fatalities resulting from
loss-of-primary-containment incidents.

Year 06 07 08 09 10
Workforce 12 17 5 9 5
Employees 1 3 0 0 0
Global Diversity
Contractors 11 14 5 9 5
Year 09 10
Women in total workforce 22.9% 23.1%
Women represented at midlevel and above 11.7% 11.8%
Women and non-Caucasian men represented at senior executive levels 26.5% 27.0%
Motor Vehicle Safety 11
Company vehicle incidents per
million miles driven

U.S. Equal Employment Opportunity Commission Statistics

2010 0.01
2009 0.06

2008 0.06 YEAR 07 08 09 10

2007 0.10 Minorities among total employees 33.9% 35.3% 34.9% 35.4%
2006 0.11 Women among total employees 29.0% 29.2% 28.9% 29.3%
Minorities among executives and senior managers 9.6% 11.0% 11.2% 11.1%
Minorities among first- and midlevel managers 26.5% 26.9% 27.5% 27.4%
Women among executives and senior managers 14.1% 15.0% 14.4% 15.3%
Women among first- and midlevel managers 25.6% 24.7% 27.4% 26.9%
Minorities among professionals 29.1% 30.6% 31.4% 31.7%
Women among professionals 32.0% 32.4% 32.4% 32.8%

Footnotes are on page 41.

40
 Notes to pages 38 and 39

1 In 2010, Chevron deployed a new greenhouse 2 Direct emissions come from sources within a 6 Global Upstream average oil concentration
gas (GHG) and energy reporting system. The facility. Indirect emissions come from electricity in discharges to water increased in 2010
new system incorporates the reorganization of and steam Chevron imports, less the emissions mainly due to pit maintenance and a new
Global Downstream and emissions estimation credits from electricity and steam Chevron procedure driven by regulatory requirements
methodologies from mandatory GHG report- exports. Grid credits account for the ­electricity for testing oil-in-water concentration in
ing requirements imposed in the U.S. state Chevron exports that is produced more effi- IndoAsia operations.
of California and nationally in Australia, the ciently than electricity from the regional or
Manufacturing and Chemicals average oil con-
European Union and the United States. Going national grid.
centration in discharges to water decreased
forward, these systematic changes will make
mainly due to the construction of a new efflu-
comparing emissions with years prior to 2010
3 In 2010, Chevron’s total energy consumption for ent treatment plant that came fully on line in
difficult. Nevertheless, the 2009 to 2010 net
Chevron’s operated assets was 747 trillion Btu November 2009 at the Pascagoula Refinery.
increase of approximately 2.2 million metric tons
(approximately 788 million gigajoules), based
of CO2-equivalent emissions can be attributed
upon a lower heating value. This performance
to several factors. Beginning in 2010, in conform­ 7 Secondary containment volume — which is
is an improvement over 2009’s consumption
ance with industry best practices, Chevron no not released to the environment — is included
of 770 trillion Btu (approximately 812 million
longer accounts for grid credits in its power in the total volume listed at the end of each
­gigajoules). 2009 numbers have been restated.
generation emissions, which increased emissions bar. Approximately 21 percent, or 2,529 barrels,
In 2010, Chevron changed its reporting of energy
by more than 0.9 million metric tons. Azerbaijan of the total volume was spilled to secondary
consumption from including nonoperated joint-
International Operating Co. is now included in containment in 2010.
venture refineries to reporting on operated
the corporate inventory, resulting in an emis-
refineries only.
sions increase of more than 0.4 million metric
8 All spills to water are included. Spills to land
tons. Operationally, flaring emissions in Angola
and secondary containment that are greater
increased due to turnaround activity, and emis- 4 Volatile organic compounds (VOCs) derive
than or equal to one barrel are included.
sions in U.S. Midcontinent operations increased primarily from fugitive emissions from equip-
due to new gas processing. Improved data col- ment (such as valves, pumps and compressors),
lection and accounting also account for the flaring and venting, and flashing gas. Nitrogen 9 Environmental fines and settlements
increased emissions from the Canadian Upstream oxides (NOX) and sulfur oxides (SOX) occur during were $93.9 million in 2010 and accounted
operations as well as from Shipping operations, ­combustion. for 3.24 percent of our total environmental
which now account for time-­chartered vessels. expenditures. Total environmental expendi­
Emissions increases were offset largely by flare tures were $2.9 billion, of which capital
5 In 2010, Chevron improved its estimation meth-
reductions in Nigeria and at Tengiz in Kazakhstan expenditures were $1.4 billion and non­capital
odology and updated the emission factors in
and by decreased emissions at the Pascagoula expenditures were $1.5 billion.
its guidance documents and tools. The updated
Refinery, which experienced high turnaround
methodologies resulted in variances in reporting Health and safety fines and settlements
activity in 2010. Other emissions offsets resulted
compared with 2009. accounted for approximately 0.2 percent of
from the shutdown of a mine in New Mexico and
the total fines and settlements, representing
the sale of marketing assets. 2010 reported VOC emissions were lower than
$0.19 million.
in 2009. The VOC emissions from Nigeria/Mid-
The 2010 flaring and venting emissions number
Africa operations decreased due to the use of
is based on flare gas volume of approximately
updated methodologies, and International and Notes to page 40
846 million cubic feet per day plus any venting
Americas Products emissions decreased due to
of gas in terms of CO2 equivalents.
divestitures of our transportation fleet and facili- 10 American Petroleum Institute’s Benchmarking
Chevron’s GHG emissions data are reported ties. This decrease was somewhat offset by Asia Survey of Occupational Injuries, Illnesses, and
on an equity basis for all businesses in which South operations, which reported an increase Fatalities in the Petroleum Industry data are used
Chevron has an interest, except as noted due to a change in flaring operations. as industry ­benchmarks. 2010 benchmark data
below. The following entities are not currently were not available at the time of publication.
2010 NOX and SOX emissions were each reported
included in the Chevron corporate GHG inven-
to be higher than 2009. In each case, a signifi-
tory: Chevron Phillips Chemical Co., the Caspian
cant portion of the increase can be attributed to 11 Data include catastrophic and major ­incidents only.
Pipeline Consortium, the Chad/Cameroon
Shipping operations, which updated its emission
pipeline joint venture, Caltex Australia Ltd.’s
factors to better account for the fuel and engine
Lytton and Kurnell refineries, and other refiner- 12 American National Standards Institute/American
types specifically used by ships.
ies in which Chevron has an equity interest of Petroleum Institute.
16 percent or less. These are entities over which Other increases resulted from power operations
Chevron does not have full operational control in the IndoAsia region, which began reporting
or which do not generally follow Chevron’s NOX emissions in 2010. Saudi Arabia/​Partitioned
­corporate GHG inventory protocol or a compat- Zone reported an increase in SOX emissions due
ible protocol. to an improved method for ­tracking gas sent
to flares.
Chevron’s 2007–2009 emissions have been
restated, primarily due to a data revision by one Global Gas, previously reported as “other,”
business unit, resulting in an annual emissions was included with Upstream in 2009 and 2010.
reduction of nearly 0.3 million metric tons. “Other” includes Chemicals, Chevron Business
and Real Estate Services, Chevron Mining Inc.,
Due to rounding, individual numbers may not
Chevron ­Environmental Management Co., and
sum to the total numbers.
Corporate Aviation.
Due to rounding, individual numbers may not
sum to the total numbers.

41
GRI and API/IPIECA Index

This index refers to: • 2006 Sustainability Reporting Guidelines of the Global Reporting Initiative (GRI), Version 3.0
• American Petroleum Institute/International Petroleum Industry Environmental Conservation Association
(API/IPIECA) Oil and Gas Industry Guidance on Voluntary Sustainability Reporting, 2nd edition, 2010
For more information on GRI and API/IPIECA reporting guidelines, please visit globalreporting.org and ipieca.org.

GRI API/IPIECA Where Reported

Profile Disclosures
Strategy and Analysis 1.1  1.2 3
Organizational Profile 2.1  2.22  2.32  2.42  2.52  2.62  2.72  2.82  2.92  2.10
Report Parameters Report Profile   3.1   3.2   3.3   3.4   41
Report Scope and Boundary  3.5  3.6  3.7  3.8  3.9   3.10   3.11 36–45
GRI Content Index  3.12 42
Assurance  3.13
Governance, Commitments Governance  4.13  4.2 3  4.32  4.42  4.52  4.62  4.72  4.8 4   SE182 1, 25
and Engagement 4.95  4.102
Commitments to External Initiatives  4.11   4.122  4.132  
Stakeholder Engagement  4.141  4.151, 5  4.161, 5  4.17 1, 5

Economic Economic Performance  EC13   EC2 3   EC33   EC43  EC53   SE135

Market Presence  EC66  EC76 SE4  SE7 1, 6 18–21
Indirect Economic Impacts  EC87, 8   EC9 1, 7, 8 13

Environmental Materials  EN1  EN2
Energy  EN3  EN4  EN59, 10  EN69, 10   EN72, 9 E2  E311 7, 35, 38, 39
Water  EN8  EN9   EN1012 E6 17
Biodiversity  EN1113  EN12 13  EN1313  EN1413   EN1513 E513 6, 8, 17, 26
Emissions, Effluents and Waste   EN16   EN17   EN1814   EN19 E8   E9  E1  E414  E10  E7 7, 17, 38, 39
EN20   EN2112   EN22   EN23   EN24   EN25
Products and Services   EN2612  EN27   EN29
Compliance  EN28 39
Overall  EN30

Social
Labor Practices and Employment  LA1   LA2   LA3 SE6 11–13, 18–21, 36, 40
Decent Work Employee Satisfaction   SE16
Labor/Management Relations  LA45   LA5
Occupational Health and Safety  LA6   LA7  LA815   LA9 HS1  HS2 15  HS3  HS5 24–26, 28–31, 40
Training and Education   LA10   LA11   LA12 SE17
Diversity and Equal Opportunity   LA132, 6  LA14 21, 40
Human Rights Investment and Procurement Practices  HR116  HR2  HR3 SE816  SE9 16 31
Nondiscrimination   HR4 SE156 21
Freedom of Association and Collective Bargaining  HR5
Child Labor  HR6
Forced and Compulsory Labor   HR7
Security Practices  HR816 SE1016 31
Indigenous Rights  HR9 SE2 16 8
Society Community  SO11, 7 SE11  SE3  SE41, 7  SE51 13, 40
Corruption  SO2  SO35  SO4 SE115  SE125
Public Policy  SO517   SO65 SE145, 17
Compliance  SO7   SO8
Product Responsibility Customer Health and Safety  PR14   PR5 HS4 4, 18 25
Product and Service Labeling  PR318
Marketing Communications   PR6
Compliance  PR2   PR4   PR7   PR8   PR9
Key to Indicators: Information responsive to 1 Throughout print and online report 7 Chevron.com/SocialInvestment 13 Chevron.com/Biodiversity
Fully reported in 2010 these indicators appears on 2 Chevron.com 8 ChevronCalifornia.com 14 Chevron.com/ClimateChange
Partially reported in 2010 our websites: 3 Chevron.com/AnnualReport 9 WillYouJoinUs.com 15 Chevron.com/HealthSafety
Not covered in 2010 4 Chevron.com/OE 10 Chevron.com/EnergyEfficiency 16 Chevron.com/HumanRights
5 Chevron.com/BusinessEthics 11 Chevron.com/EmergingEnergy 17 Chevron.com/EnergyPolicy
6 Chevron.com/Diversity 12 Chevron.com/Environment 18 Chevron.com/MSDS

42
 Assurance Statement

Scope of the Assurance Conclusions and Findings

Lloyd’s Register Quality Assurance, Inc. (LRQA) was engaged To form our conclusions, LRQA obtained sufficient evidence
by Chevron U.S.A. Inc. to assure the reporting processes used considered necessary for us to give limited assurance of
in the creation of Chevron’s 2010 Corporate Responsibility Chevron’s HES reporting processes. Based on the scope of the
Report (“the Report”). The objectives of the review were to assurance and the data and information presented for review,
validate the integrity of Chevron’s reporting p
­ roc­esses and to nothing has come to our attention that would cause LRQA
evaluate consistency with the IPIECA/API Oil and Gas Industry not to believe that Chevron’s reporting process is effective in
Guidance on ­Voluntary ­Sustainability Reporting (2010). LRQA delivering HES indicators for the purpose of evaluating and
has reviewed Chevron’s Corporate Responsibility Report communicating corporate performance in these areas.
reporting processes since 2008 (for the 2007 Corporate
Responsibility Report). Our other conclusions:
• Processes are in place that ensure that sites contributing to
The LRQA scope of assurance was limited to processes for
core HES metrics understand corporate reporting procedures
the reporting of health, environmental and safety (HES)
and requirements.
performance indicators. Verification of the accuracy of data
and information was not included in the assurance scope. • The methods to be used for calculating each HES performance
The Report has been prepared and approved by Chevron metric are clearly defined and communicated.
management, who are solely responsible for the collection,
• Chevron’s reporting requirements for HES metrics are under-
presentation, and accuracy of all data and information con-
stood and carried out. Data collected at the site/local and
tained within it.
business unit levels are checked and aggregated into corpora-
tionwide metrics.
Approach
LRQA’s assurance approach was risk-based and undertaken • Responsibility for annually reviewing and updating reporting
as a sampling exercise. It covered the following activities: guidelines is clear, with improvement in methodology ­regularly
undertaken.
• Visiting Chevron’s Global Upstream and Gas facility in Midland,
Texas, and Chevron’s ­Downstream refinery in Pascagoula, Mis- • Chevron’s reporting process is effective in delivering HES
sissippi, to assess local understanding and implementation of indicators that are useful for assessing corporate performance
­Chevron’s HES reporting requirements. and reporting information consistent with IPIECA/API/OGP
Oil and Gas Industry Guidance on Voluntary ­Sustainability
• Visiting Chevron’s Downstream and Chemicals headquarters in
Reporting (2010).
San Ramon, California, to assess ­business unit understanding
and implementation of Chevron’s HES reporting requirements.
Observations and areas for potential improvement are provided
• Interviewing key personnel to identify and gain an understand- in a report to Chevron management. These ­observations do not
ing of Chevron’s reporting requirements. affect our conclusions.
• Reviewing the documented reporting requirements to v ­ alidate
consistency of scope, definition and reporting for each of the
HES performance indicators.
• Reviewing the processes used at the corporate level to ­aggregate
data and information for inclusion in the final report.

Andrea Bockrath
On behalf of Lloyd’s Register
Quality Assurance, Inc.
March 24, 2011

Third-Party Liability  LRQA, its affiliates and subsidiaries and their respective officers, employees or agents are, individually and collectively, referred to in this clause
as the “Lloyd’s Register Group.” The Lloyd’s Register Group assumes no responsibility and shall not be liable to any person for any loss, damage or expense caused by
reliance on the information or advice in this document or howsoever provided unless that person has signed a contract with the relevant Lloyd’s Register Group entity for
the provision of this information or advice, and, in that case, any responsibility or liability is exclusively on the terms and conditions set out in that contract.
LRQA’s Competence and Independence  LRQA ensures the selection of appropriately qualified individuals based on a rigorous appraisal of their training, qualifications
and experi­ence. The team conducting the assurance of the Report was multidisciplinary and has been involved in assurance assessments from the outset of external
verification of nonfinancial performance reports. LRQA’s internal systems have been designed to manage and review assurance and certification assessments. This involves
independent review by senior management of the outcome derived from the process applied to the assurance of corporate reports.
Independence of LRQA From Chevron  LRQA and Chevron operate as discrete and independent legal entities. LRQA provides Chevron with third-party attestation assess-
ment services to ISO 14001 and OHSAS 18001 as well as certi­fication assessment services to other ISO standards. The assurance, attestation and certification assessment
services are the only work undertaken by LRQA for Chevron.
Conflict of Interest  LRQA is part of the Lloyd’s Register Group. Lloyd’s Register Group entities recognize that potential conflicts of interest may exist that could have
an impact on its independent assurance and certification activities. Lloyd’s Register Group entities are committed to identifying and managing such conflicts so that they
do not adversely affect its independence and impartiality. To protect the integrity, neither LRQA nor any other Lloyd’s Register Group entity will provide services that
create a conflict and compromise the independence and impartiality of third-party assurance and certification. The Lloyd’s Register Group entities will never verify their
own solutions to a customer’s problem.

43
Glossary

Aa Dd Ll Pp
API Downstream Liquefied natural gas (LNG) Partner
American Petroleum Institute The industry term for operations Natural gas that is liquefied In this report, partner is used
related to refining crude oil into under extremely cold tem- in its broad sense to mean a
Bb finished petroleum products, peratures to facilitate storage person or organization associ-
Biodiversity and for marketing crude oil or transportation in specially ated with another in a common
Refers to the diversity of life and the many products derived designed vessels. activity or one that shares a
on the planet. It encompasses from petroleum. mutual interest. It does not
genera, species, habitats and Nn imply a member of a contrac-
­ecosystems, and the processes Ff Nongovernmental tual partnership in which the
that support them. Flaring and venting organization (NGO) partners jointly own and carry
The burning or release of natu- An organization that is indepen­ on a business and proportion-
Cc ral gas that is often produced dent from government, generally ally share in liabilities, profits
Capacity building in association with crude oil, a a nonprofit organization devoted or losses of the business.
A key area of focus for Chevron’s process that typically occurs to providing assistance to or
community engagement efforts, when there is no market or onsite advancing a particular cause Rr
which means targeting support use for the gas. or issue. Renewable energy
toward programs that help indi- Energy resources that are not
viduals and institutions develop Gg Oo depleted when consumed or
the skills, capabilities and exper- Geothermal energy OGP converted into other forms
tise they need to succeed. A renewable source of energy International Association of Oil & of energy (for example, solar,
that uses the heat energy of the Gas Producers geothermal, ocean and tide,
Carbon sequestration wind, hydroelectric power, and
earth for heating or to create
Capturing and storing carbon OHSAS 18001:2007 biofuels).
electricity.
­dioxide in various ways, such An international Occupational
as ­capture by vegetation or by Greenhouse gases (GHGs) Health and Safety Assessment Ss
­injection into geologic forma- Gases that trap heat in the Series management system Stakeholder
tions for long-term storage, so atmos­phere; such gases include specification. At Chevron, defined as those
that it does not enter or remain water vapor, ozone, carbon who affect, are affected by, or
Operational Excellence
in the atmosphere as a green- dioxide, methane, nitrous oxide, have a legitimate interest in our
Management System (OEMS)
house gas. hydrofluorocarbons, perfluoro­ company’s performance.
Chevron’s standard approach
carbons and sulfur hexafluoride.
The Chevron Way to systematic management
Explains our values: who we are, of safety, health, the environ- Uu
what we do, what we believe and
Ii ment, reliability and efficiency Upstream
IPIECA The industry term for opera-
what we plan to accomplish. in order to achieve world-class
International Petroleum ­Industry tions related to exploring for,
performance.
Environmental Conservation developing and producing
Association crude oil and natural gas; for
ISO 14001:2004 marketing natural gas; and for
Environmental management transporting crude oil, natural
­system standard developed by gas and petroleum products by
the International Organization pipeline and marine vessel.
for Standardization.

Biodiversity
The pig-tailed macaque (Macaca nemestrina)
is commonly found near PT Chevron Pacific
Indonesia’s operations in Rumbai and Minas,
Sumatra, where production operations coexist
with healthy vegetation and pristine forests.

44
We embrace shared progress across our operations
around the world. To learn more, please visit
Chevron.com/CorporateResponsibility.

About This Report

This report covers 2010 data and activities. We also occasionally mention activities that took place before 2010 and in early
2011 when they help provide a clearer picture of our performance. This report covers our owned or operated businesses and
does not address the performance of our suppliers, contractors or partners unless otherwise noted. All financial information
is presented in U.S. dollars unless otherwise noted. Our previous report was published in May 2010 and covers 2009 data
and activities.

We continue to be informed by reporting frameworks and guidelines that include the Global Reporting Initiative (GRI) and
the Oil and Gas Industry Guidance on V­ oluntary Sustainability Reporting, 2nd edition, published in 2010 by the International
Petroleum Industry Environmental Conservation Association (IPIECA) and the American Petroleum Institute (API). We included
an index to help readers find information corresponding to the GRI and API/IPIECA indicators (see page 42).

This report, previous editions of our report and additional information can be found at Chevron.com/CorporateResponsibility.
We ­welcome your comments and feedback.

Ms. Silvia Garrigo

Chevron Corporation
6001 Bollinger Canyon Road
San Ramon, CA 94583-2324

Cautionary Statement Relevant to Forward-Looking Information WRITER

Peter Bartelme
PHOTO CREDITS
This Corporate Responsibility Report by Chevron C ­ orporation contains forward-looking statements Cover: Robert Garvey/BKAY Design
relating to the manner in which Chevron intends to conduct certain of its activities, based on manage- Page 3: Eric Myer
ment’s current plans and expectations. These statements are not promises or guarantees of future Pages 4 & 5: Jeremy Ashton
Page 6: Simon Westlake
conduct or policy and are subject to a variety of uncertainties and other factors, many of which are Page 7 (from left): Jeremy Ashton; Mike Edmondson
beyond our control. Page 8 (from top): Robert Garvey/BKAY Design; Jen O’Reilly
Page 9: Tom Rovis Hermann
Therefore, the actual conduct of our activities, including the development, implementation or continu- Pages 10 & 13: Marc Marriott
Pages 14 & 15: Marilyn Hulbert
ation of any program, policy or initiative discussed to forecast in this report, may differ materially in Page 16: Myla Domingo
the future. The statements of intention in this report speak only as of the date of this report. Chevron Page 17: Tina Toriello
Pages 19–21: Marc Marriott
undertakes no obligation to publicly update any statements in this report. Pages 22–25: Ken Childress
Page 26: Elizabeth Ryan
As used in this report, the term “Chevron” and such terms as “the company,” “the corporation,” “their,” Page 27: John Smallwood
“our,” “its,” “we,” and “us” may refer to one or more of Chevron’s consolidated subsidiaries or affiliates Pages 29–31: P.J. Raval
Pages 32–35: Oetomo Wiropranoto
or to all of them taken as a whole. All these terms are used for convenience only and are not intended Page 37: Chevron Argentina
as a precise description of any of the separate entities, each of which manages its own affairs. Page 44: Budi Koesoemo
 2010 Annual Report 2010 Supplement 2010 Corporate Responsibility Report
to the Annual Report

2010 Annual Report 2010 Supplement to the Annual Report 2010 Corporate Responsibility Report

 earn More Online

L The printed report was printed on Forest Stewardship
The Annual Report, the Supplement to the Annual Report Council–certified Mohawk Options 100, made from
and the Corporate Responsibility Report are available on 100 percent post-consumer waste. It is processed
the Internet at Chevron.com/Publications. elemental chlorine-free and produced using wind energy.
Printed by Lithographix, Inc., whose rooftop solar
© 2011 Chevron Corporation. All rights reserved. panels are expected to offset the company’s energy
913-0386H 5/11 (20M) demands by 30 percent.
Design: Sequel Studio, New York

Chevron Corporation
6001 Bollinger Canyon Road
San Ramon, CA 94583-2324
www.chevron.com