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 Social Responsibility 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.

Occidental's vice president of HES is 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 pursued certification of the HESMS by outside organizations under the international voluntary standard for comprehensive environmental management systems (ISO 14001).

HES Principles

Health, Environment and Safety is a cornerstone of Occidental's operations, from the initial acquisition or design of a project through construction, operation and closure, and it is an essential element in meeting Occidental's goal to be a Partner of Choice®.

Occidental's HESMS is based upon the following 10 HES Principles:

  1. Safeguard the health and safety of people and protect the environment using design procedures, work practices and employee training

  2. Correct operating conditions that have a significant adverse HES impact

  3. Reduce waste generation and responsibly manage waste disposal

  4. Reduce pollutant releases to the environment

  5. Make efficient use of water and other natural resources

  6. Use energy efficiently

  7. Provide information on the safe use and disposal of Occidental's products

  8. Maintain a dialogue with neighboring communities about HES concerns

  9. Ensure ongoing enterprise-wide communications, including with the Board of Directors

  10. Report annually on Occidental's HES performance

HESMS Elements

Occidental continues to validate and improve its Health, Environment and Safety policies and HES Management System to address new business activities and challenges. Our vision remains focused on protecting people and the environment and increasing stockholder value by providing reliable, cost-effective energy and chemical products that are essential to society, public health and modern life.

Occidental's HESMS incorporates the following seven elements:

  1. Leadership - Senior management is committed to implementing HES policies and procedures, and fostering a business culture that values the importance of HES success.

  2. Policy and Strategic Objectives - Defining HES goals, principles and strategies is key to achieving sustained improvement in HES performance.

  3. Organization, Resources and Documentation - Processes ensure human, financial and organizational resources are in place.

  4. Risk Management and Evaluation - Identifying and evaluating HES risks are necessary for developing appropriate risk management measures.

  5. Planning - Operational effectiveness rests on the integration of and planning for HES requirements.

  6. Implementation and Monitoring - HES performance is routinely tracked with other quantifiable business goals and objectives.

  7. Auditing and Reviewing - Periodic assessment of HES systems and performance by trained company HES auditors independent of the subject facility or operation, supplemented by third party auditors as warranted, leads to program and performance improvements.