HES Management System (HESMS)

Occidental's comprehensive Health, Environment and Safety Management System (HESMS) sets consistent worldwide performance expectations and standards across each business segment's respective operations. Committed to conducting business in a manner that protects the health and safety of people and the environment at its facilities and in the communities where we operate. Occidental's HESMS incorporates community outreach elements from the American Chemistry Council's (ACC) Responsible Care® initiative, the global oil and gas industry association for environmental and social issues (IPIECA) and the Voluntary Principles on Security and Human Rights (VPs). The HESMS facilitates compliance with laws and regulations and the management of HES and SR risks to improve overall business performance. It encourages individual responsibility, values quantifiable results and promotes communication among employees, contractors, neighboring communities, government authorities and other stakeholders.

Line management and the vice president of HES are responsible for implementing the HESMS, with oversight from the Environmental, Health and Safety Committee of the Board of Directors. Business managers and HES experts provide guidance, oversight and support to local operations in updating and implementing the HESMS. Each manager and employee is accountable for HES performance, including compliance with applicable HES laws, regulations, company policies and procedures within the scope of his or her duties. All personnel are empowered and expected to report non-compliance or unsafe conditions promptly and to take immediate action to prevent injuries or environmental incidents. From individual facility locations to the corporate level, HESMS implementation is routinely reviewed and verified with audits. Performance in key areas of HES and SR is directly considered in the annual review and compensation of employees, as well as in the selection of contractors, suppliers and business partners.

Throughout Occidental's worldwide operations, the HESMS emphasizes risk identification and forthright communication through job safety analyses, process hazard reviews, HES inspections and assessments and emergency planning so that preemptive actions can be taken to prevent or mitigate injuries or environmental incidents. The HESMS also provides tools for managers and employees to recognize HES and SR risks in their areas of responsibility. These risks undergo rigorous analysis to identify, prioritize and implement appropriate mitigation measures that are designed to improve performance.

The HESMS helps with the orientation of new personnel, including those at newly constructed facilities and acquired operations. As a regular practice in new projects, Occidental assesses potential social and environmental impacts. This comprehensive process helps us identify and address potential risks and stakeholder concerns promptly, strengthen Occidental's relationship with host communities, and educate new employees and contractors about performance expectations.

Some of Occidental's international operations, including oil and gas operations in Oman and OxyChem's plant in Chile, have also chosen to pursue certification of the HESMS by outside organizations under the international voluntary standard for comprehensive environmental management systems (ISO 14001).