Chevron Corp. invested $144 million in communities around the world, adopted a human rights policy and completed major energy efficiency projects, according to the company’s 2009 Corporate Responsibility Report, The Value of Partnership, which was issued this week.
“Global economic prosperity and quality of life depend on secure supplies of reliable, affordable energy,” said John Watson, Chevron chairman and CEO. “Every day, Chevron employees produce and deliver energy in a safe, environmentally sound and socially responsible manner, creating enduring economic and social value.”
Chevron’s eighth annual Corporate Responsibility Report provides descriptions, data and perspectives on community and stakeholder engagement, environmental management, energy efficiency, health and safety, human rights, and renewable energy and biofuels.
Highlights include the company’s community engagement projects and partnerships to contribute to social progress, economic growth and the well-being of communities where the company operates. In 2009, Chevron invested $144 million in communities around the world to promote basic human needs, provide education and training and stimulate local business development. Through Chevron Humankind, the company’s U.S. employee community involvement program, employees volunteered more than 40,000 hours in their communities and participant contributions and company matches resulted in more than $25 million to support the work of nonprofits.
Chevron purchased approximately $40 billion in goods and services from suppliers and contractors, including $2.7 billion with small and medium-size businesses in the U.S. in 2009. Chevron also spent an additional $319 million with minority-owned business and $433 million with women-owned businesses in the U.S. The report explains how Chevron’s community investments are designed to strengthen communities, support the development of women and encourage greater economic and social stability.
In its effort to continue to address global health issues, Chevron made a three-year, $30 million investment with the Global Fund to Fight AIDS, Tuberculosis and Malaria in 2008. In 2009, the company worked with Global Fund grant recipients in Angola, Nigeria, South Africa, Indonesia, Thailand and the Philippines to stem the spread of these diseases. Chevron partnered with Program for Applied Technology, an international non-government organization, to increase HIV/AIDS awareness among youth and public transportation drivers in Thailand. The company also worked with Nigeria’s National Agency for the Control of AIDS to deploy a Small/Medium Enterprise Workplace Wellness program to improve management of AIDS, malaria and tuberculosis in the workplace.
In 2009, Chevron adopted a human rights policy to further the company’s commitment to respecting human rights in the countries and communities where it operates. The policy addresses four human rights areas relevant to the company’s business: employees, security providers, community engagement and suppliers.
Also in 2009, Chevron sanctioned the $37 billion Gorgon natural gas project off the Northwest Coast of Australia-the largest energy project in the company’s history. The project is expected to generate thousands of jobs, produce energy for millions of homes and businesses, and integrate environmental, economic and social benefits. To reduce carbon emissions, the project plans to capture and reinject carbon dioxide (CO2) from natural gas production. Chevron also expects to sustain the environmental integrity of Barrow Island, a Class A nature reserve and the location for Gorgon. Barrow Island has been a model for coexistence of energy development and biodiversity since Chevron began oil operations there in 1964.
Energy Efficiency and Climate Change
Last year Chevron reduced its greenhouse gas (GHG) emissions by approximately 2.2 million metric tons of CO2 equivalent. From 2008 to 2009, Chevron reduced GHG emissions from flaring by 8% and advanced significant projects that will continue to reduce GHG emissions from flaring in Angola, Kazakhstan and Nigeria.
Chevron Energy Solutions (CES), a subsidiary, undertook several projects in the U.S. to improve energy efficiency and install renewable power technologies at schools, federal facilities and Chevron facilities. In 2009, CES completed the nation’s largest energy efficiency and solar electric system at a transit facility for the Los Angeles County Metropolitan Transportation Authority. Along with other energy-efficient improvements, the project is expected to cut the facility’s annual $1.1 million energy bill in half and reduce its purchase of utility power, which is anticipated to reduce carbon emissions by more than 3,700 metric tons. Since 1992, Chevron has increased its own energy efficiency by 30 percent.
Health and Safety
For the eighth consecutive year, Chevron has improved its safety performance. In 2009, the company posted its safest year on record.
Chevron’s workforce has increased its awareness of road safety, reducing the company’s most severe motor vehicle incidents by 73% since 2007.
Renewable Energy and Biofuels
In 2009 Chevron built two renewable energy projects on former refinery sites: a wind farm in Casper, Wyo., and a solar test facility in Bakersfield, Calif. In 2010, Chevron Technology Ventures plans to have completed what may be the largest concentrating solar photovoltaic power plant in the U.S., located at Chevron Mining Inc.’s Questa mine in New Mexico.
Chevron’s Environmental, Social and Health Impact Assessment (ESHIA) process is designed to identify, analyze and develop measures that enhance benefits and avoid or mitigate potential environmental, social and health impacts of new capital projects. By the end of 2009, ESHIA was being applied to more than 690 capital projects worldwide. One goal of ESHIA is to establish and maintain dialogue with stakeholders throughout the lifetime of a project and solicit their views on potential benefits and impacts and consider their ideas in the company’s assessments and planning.