Impacts

Imapcts

Occidental's partnerships with organizations, governments and other entities in the public and private sectors advance local and regional economies. As a Partner of Choice®, we pursue these collaborative efforts in all of our business operations. By working with local partners we seek to create shared value for the company and our key stakeholders, including host governments and local community members. These objectives are aligned with the United Nations Sustainable Development Goals (SDGs). The SDGs give Occidental a complimentary framework to use and to communicate its supportive role with host governments. Occidental will strive to incorporate the SDGs into our Social Responsibility programs and to identify additional opportunities to help countries make progress towards achieving the Goals.


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Occidental promotes high ethical standards, institutional integrity and effective corporate governance in every facet of its enterprise. We have implemented a number of policies and systems that establish clear performance expectations for business conduct by our workforce, including respect for the cultural values of our employees, contractors and neighboring communities, and the promotion of human rights. Occidental and its Board of Directors are committed to high standards of ethical conduct. The company's Code of Business Conduct (Code) affirms that commitment and reinforces our business ethics, policies and procedures. Occidental actively promotes respect for human rights among employees, contractors and neighboring communities through robust operating policies, training and awareness activities.

Occidental strives to work with partners, suppliers and contractors who share our commitment to ethical business practices, safety, people and the environment. As a part of the Compliance Program, Occidental evaluates prospective business partners, contractors, suppliers and agents and conveys our expectation that they comply with the Company's policies, including the Code of Business Conduct. Our international procurement contracts include provisions with respect to the observance of human rights, ethical business conduct and other relevant policies.

Occidental promotes and advances the implementation of human rights with industry partners and groups from outside the oil and gas sector. For example, Occidental Colombia - as a member of the Mining and Energy Committee (Comité Minero-Energético, or CME), a Colombia-based forum of extractive companies - actively supports the CME to promote and advance security and human rights best practices. Occidental Colombia delivered training workshops to its security employees and the private security personnel employed in the La Cira Infantas operation to identify and assess current practices in the interaction with the Colombian Public Security Forces.

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Occidental's success is built on technical expertise, business acumen, strong partnerships and proven ability to deliver superior results. We take pride in being a responsible employer, committed to providing safe, supportive and high-quality work environments and treating every employee with dignity and respect. In our fast-paced, competitive industry, we strive to create a supportive, challenging work environment that rewards initiative and innovation. Our diverse, multicultural, global workforce is dedicated to achieving the company's performance objectives and contributing to the communities in which we operate.

We believe in providing a workplace free from unlawful discrimination, hostility and harassment and where rights to freedom of association and collective bargaining are respected. Any hostility toward, discrimination against or harassment of any employee based on age, color, gender, sexual orientation, national origin, religion or any racial, ethnic or other personal characteristic is a violation of Occidental's policies.

Investing in education and skills-based training in their countries of operation helps oil and gas companies address difficulties finding the necessary technical, operational and commercial skill sets required, as well as providing more local value by increasing the potential for direct and indirect employment of local workers and suppliers.

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Occidental is committed to conducting business in a manner that protects the health and safety of people and the environment at our facilities and in the communities where we operate. We continuously enhance our programs to prevent and mitigate Health, Environment and Safety (HES) incidents and reduce risks to people and the environment. Occidental's consistently strong Health and Safety performance demonstrates employees' dedication to adhering to the company policies and procedures that create and maintain safe work environments.

Occidental's commitment to safety unites employees worldwide. Occidental has sustained an excellent safety performance through a comprehensive approach that begins with the establishment of consistent expectations by the company's Board of Directors and management. Our approach includes empowering and training employees and contractors and supporting them with safe work systems, technology, and proactive maintenance and asset integrity programs. For example, under our Stop Work Authority policy we require employees and contractors to halt production, shut down any equipment or stop any job to prevent an accident or environmental incident.

OSHA Star Status

OxyChem has been a longstanding and dedicated participant in the Occupational Safety and Health Administration's (OSHA's) Voluntary Protection Programs (VPP), which recognize worksites in the United States that implement comprehensive health and safety programs beyond regulatory requirements, actively involve employees in safety, and demonstrate sustained safety performance. OSHA's Star recognition is granted to worksites and employers that demonstrate exemplary achievement in the prevention and control of occupational safety and health hazards and continuous improvement of their health and safety management system. A worksite must have comprehensive safety and health programs and an Injury and Illness Incidence Rate (IIR) and Days Away, Restricted and Transfer (DART) Rate below the industry's national average. OSHA also expects work sites to have active employee committees that ensure the facility meets or exceeds regulatory requirements. Eighteen OxyChem facilities, including the headquarters in Dallas, have achieved Star Status under OSHA's Voluntary Protection Program as among the safest work sites in the U.S. OxyChem's consistent performance demonstrates that employee involvement sustains high levels of safety performance, which is the primary goal of pursuing the OSHA Star designation.

Process Safety and Asset Integrity

Occidental applies rigorous Health, Environment and Safety (HES) risk management and Asset Integrity (AI) programs to safeguard personnel, protect the environment and maintain operational reliability of equipment and systems in our plants and fields. Our risk-based AI program includes several key elements: mechanical integrity, maintenance, corrosion management and quality assurance/quality control. Occidental developed an innovative AI management system to maintain a high level of equipment and systems integrity throughout its facilities, involving operations, facility engineering, major projects, construction and supply chain, business planning and HES. Occidental's AI program leverages the experience of engineers and specialists in mechanical integrity, maintenance, corrosion and other disciplines to manage and coordinate technical requirements and assist in program implementation, execution, review and improvement. This fosters a consistent approach worldwide and promotes the use of standardized tools and processes. We also extend this approach to the joint ventures that we operate.

The foundation for Occidental's successful AI program is the classification of systems and equipment that must remain available to maintain safe and reliable operations. Once critical equipment is classified, Mechanical Integrity teams develop detailed inspection and testing strategies and procedures for each specific equipment category. Occidental uses an internationally recognized and rigorous risk-based inspection process to prioritize and manage its inspection programs for critical equipment. It reflects up-to-date facility information and helps focus resources where they provide the greatest benefit. Inspection methods include on-stream techniques that minimize impact to operations. We evaluate and deploy innovative technologies and advanced techniques to increase the accuracy, confidence, reliability and scope of asset integrity inspections.

Occidental's capital investments in maintenance and its AI program emphasize mitigation of risks to people. We also continually invest in inspection activities, projects to upgrade or replace facilities and pipelines in environmentally sensitive areas, and automated control systems to detect and mitigate leaks and spills to the environment. Occidental has also reinforced operator authority to safely shut down facilities, pipelines and wells - without the need to first contact a supervisor - when a potential incident is detected. Together, these efforts have enabled our operators to detect and immediately take steps to mitigate incidents.

Transportation Safety

Occidental is committed to ensuring the vehicles it owns or operates, including tractor-trailers, railcars, light-duty trucks and passenger automobiles, are well maintained and equipped with appropriate safety features. Transportation safety issues - including the transportation of hazardous materials - are managed to prevent incidents and minimize risks. We collaborate closely with our contractors who transport our personnel, products and equipment, whether by ground, water or air, to increase transportation safety.

Emergency Planning and Hurricane Preparedness

The key to effective emergency preparedness is practice. Occidental stresses the importance of safety drills and various emergency scenarios across all its operations. Employees are trained in how to respond to emergencies and to test business resiliency systems, such as communications networks and data centers.

Occidental coordinates its emergency plans with government institutions and public officials on issues of mutual importance, such as a storm response and evacuation. In the Houston-Galveston region, June through November marks the hurricane season. Occidental engages with federal, state and local agencies and local industry to coordinate hurricane plans and, on occasion, to participate in drills to simulate what would happen during a potential hurricane situation. These drills and related activities help to streamline communication among emergency response agencies, local governments and Occidental's emergency management teams.

Employee Wellness

The good health of our workforce is a high priority. Occidental is committed to offering programs that guide employees along the journey to better health, and providing them with resources, education, tools, and positive support to achieve their personal wellness goals. Occidental also provides access to a company-wellness platform with information and interactive tools that help employees create personalized wellness plans specifically designed to meet their needs. OxyHealth programs support early detection of risks, which enables employees to undertake lifestyle changes to lessen or eliminate the potential concern, as well as establish and meet targets that leads to better long-term health.

Occidental has expanded its longstanding wellness initiative, which began with a 2013 launch of the OxyHealth program, to encourage active lifestyles and physical fitness. OxyHealth has had a direct impact on reduced absenteeism, long-term disability, and short-term disability. On an annual basis, Occidental provides employees and spouses with flu vaccinations, travel immunizations prior to international travel, and access to a number of local healthcare resources. Annual physicals are fully covered for employees through Occidental's benefit plans and many of Occidental's office locations host annual health fairs providing complimentary health checks for employees and their families. Through its employee benefits program, Occidental also offers an Employee Assistance Program that provides employees and their dependents with complimentary access to counseling services to help with personal or work-related challenges. The program provides confidential assistance 24 hours a day, 365 days a year.

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Occidental understands the importance of managing energy and natural resources responsibly. Everywhere we operate, Occidental applies a robust environmental risk management approach and operational practices to increase energy efficiency and reduce greenhouse gas emissions and air pollution, even while expanding our production. We consistently apply Occidental's Health, Environment and Safety Management System (HESMS) to assess and manage potential risks in key environmental focus areas and to facilitate:

  • Compliance with environmental laws and regulations

  • Identification and management of climate-related risks

  • Efficient use of energy, water, land and other natural resources

  • Preservation of habitat and biodiversity

  • Control of emissions

  • Proactive management and mitigation of environmental risks

  • Responsible remediation of the company's past operating or waste management practices

  • Pursuit of continuous improvement in environmental protection

Field development using directional drilling and locating more than one well from a single drill pad reduces the surface area needed for oil and gas production. In mature fields, we often apply enhanced oil recovery (EOR) technologies and drilling techniques. Occidental is an industry leader in carbon dioxide enhanced oil recovery (CO2 EOR) and carbon capture, utilization and sequestration (CCUS), a technological and operations-oriented approach that can be used to reduce greenhouse gas emissions while growing our business. For those interested in greater detail, the report Climate-Related Risks and Opportunities: Positioning for a Lower-Carbon Economy linked in the left-hand menu provides an in-depth review of CO2 EOR and CCUS, as well as our assessment of other climate-related risks and opportunities in our business.

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Occidental's goal is to consider the self-sufficiency, sustainability, health, safety and environment of the communities in which we operate, and to conduct our business as a responsible corporate citizen. Occidental seeks to strengthen local economies, applying a business model that encourages communities to develop and thrive. We engage in numerous partnerships that address communal needs and create economic opportunity and inclusive social development. In each of our business locations, we follow established procedures to gain an understanding of the potential effects of Occidental's presence on the local community and the surrounding region. By investing our time and resources in programs and initiatives that support the areas surrounding our operations, we advance our relationships with neighboring communities and work to promote mutually beneficial outcomes.


Case Studies

Read about some of the work that Occidental has been undertaking with Social Responsibility in our case study index.

Impacts Reports