Oxy | Stakeholder Engagement

Oxy communicates frequently with neighbors, local governments, partners and other stakeholders near our operations to understand their interests and objectives and to pursue positive interactions and outcomes. We often partner with local, regional and international institutions that benefit families and communities by promoting public health and safety, environmental stewardship, economic development, education and cultural life.

Our companywide policies and procedures require social impact assessments prior to beginning operations in a new international location, as well as periodic reviews of existing operations. Oxy’s stakeholder engagement process for new development projects includes the identification of key stakeholders; an assessment of stakeholder interests and positions regarding the project; an evaluation of the community’s socioeconomic needs; the development and implementation of a stakeholder relations plan to address community interests and needs; periodic monitoring to evaluate the results; and updating of the assessment for continuous improvement.

In Colombia, for example, Oxy includes local communities in the process of planning and implementing social investments in the company’s areas of operation. The Colombian Ministry of Environment or regional environmental agencies specify health, environment and safety (HES) and social permit conditions for oil and gas development projects in Colombia. Every year, before initiating the social investments, Oxy engages with dozens of local community action councils known as Juntas de Acción Comunal and voluntarily seeks their guidance to prioritize and allocate the investments. Additional community meetings are held during the year to discuss the status of the social investment projects and evaluate the results.

Similarly, OxyChem’s plants regularly engage with their local stakeholders through community advisory panels. OxyChem’s plant in Wichita, Kansas, for example, has established a Community Involvement Group (CIG) that includes a cross-section of representatives from the Wichita metropolitan area. During CIG meetings, which are held five times each year, community members learn about and discuss the plant’s operations and projects, including the adjacent Prairie Wetland Conservation Area, and convey their interests or concerns. This approach has enhanced transparency, and cultivates community involvement and collaboration.

Stakeholders

Those persons and institutions with a direct interest in the manner in which Occidental conducts its business, including, as appropriate, our stockholders, employees, contractors and suppliers, as well as representatives of civil society and the communities in which Occidental conducts its business.

Stakeholder engagement at Occidental is a continuous improvement process with eight elements:

1.         Define project scope

2.         Identify potential stakeholders

3.         Solicit input from stakeholders and the general public

4. Set strategic commitments based on dialogue with stakeholders

5. Create action plans based on strategic commitments

6. Implement action plans

7. Measure results

8. Evaluate, learn and adjust actions as necessary

The specific stakeholder engagement process for new development projects is summarized below and illustrated by examples.

Key Activities*	Description
Stakeholder Analysis	Identify communities, local organizations, and government institutions at each level, as well as other stakeholders, including responsible non-governmental organizations (NGOs). Evaluate the structure and processes for stakeholder engagement and identify potential stakeholder interests and issues related to the project on a preliminary basis.
Stakeholder Issues Assessment	Contact and interview responsible stakeholders as appropriate. Identify stakeholder interests and positions regarding the project.
Stakeholder Relations Plan	Identify strategic actions to establish constructive relationships with stakeholders and to address stakeholder issues with the objective of minimizing or avoiding conflicts before critical project milestones are reached.
Socioeconomic Baseline Study	Include information on the cultural, social and economic institutions of the community and how they interact, as well as basic social and economic issues, including health, education and employment.
Community Needs Assessment	Identify community development projects that address or mitigate priority health, education and economic issues described in the socioeconomic baseline study.
Community Relations Program	Identify investments in education, health and social and economic development projects and other worthwhile initiatives. Evaluate timetable for performance. Develop proposed budget, investment schedule and evaluation criteria before investment begins.
Project Evaluation	Use socioeconomic baseline and evaluation criteria to monitor project outcomes and results of community investments.

*This list of key activities and the descriptions of such activities are intended to be illustrative of the types of activities that generally should be considered in assessing projects. Not all of the activities may be required for every project and certain projects may require consideration of additional activities.