Oxy’s formal HES management system (HESMS), implemented in the late 1970s, is embedded in our operations. Oxy’s HESMS encourages individual responsibility, values quantifiable results and promotes communication. Business managers and HES experts provide guidance, oversight and support to local operations in developing and implementing the management system. We have robust programs to maintain compliance with laws and regulations, enhance employee and contractor safety performance, minimize environmental impacts and risks, meet objectives and facilitate sustained performance improvement.

From individual facility locations to the corporate level, system performance is routinely reviewed and verified with audits, evaluations and other quality assurance and quality control methods. The presidents of Oxy’s business segments and the vice president of HES are responsible for implementing the HESMS, with oversight from the Health, Environment and Safety Committee of the Board of Directors. Each manager and employee is accountable for HES performance, including compliance with applicable HES laws, regulations and 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. HES performance is also considered in the annual review and compensation of employees, as well as in the selection of contractors, suppliers and business partners.

Oxy’s policies governing health, safety and the environment and our formal HESMS have evolved 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 products — including energy and chemicals — that are essential to society, public health and modern life.

Oxy’s HESMS directly engages and challenges managers and employees to attain HES performance goals and identify opportunities for continuous improvement. The management system sets expectations that go beyond compliance with applicable HES laws by requiring each business segment to implement a consistent worldwide standard of care across its operations. The HESMS also provides tools for managers and employees to recognize HES risks in their areas of responsibility and take appropriate actions to manage those risks prudently. Achieving HES performance goals is the responsibility of every Oxy manager and employee.

Oxy's HES management system incorporates the following elements:

Leadership

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

Policy and Strategic Objectives

Defining HES goals, principles and strategies is key to achieving sustained improvement in HES performance.

Organization, Resources and Documentation

Processes ensure human, financial and organizational resources are in place.

Evaluation and Risk Management

Identifying and evaluating HES risks is necessary for developing appropriate risk-management measures.

Planning

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

Implementation and Monitoring

HES performance is routinely tracked with other quantifiable business goals and objectives.

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.

Oxy’s wholly owned subsidiary, OxyChem, has tailored its HES management system to incorporate the American Chemistry Council (ACC) Responsible Care^® initiative. The program is structured around a set of stringent HES metrics and verifies conformance with the Responsible Care^® program through internal and external audits. Among the Responsible Care requirements are: implementation of management systems that are verified by independent auditors; tracking performance through established HES measures; and extending best practices to business partners. OxyChem plants also regularly participate in community advisory panels to discuss HES improvements, performance and other information of interest.

To prepare for potential emergency scenarios, Oxy’s oil and gas production, crude oil pipeline operations and chemical operations have robust emergency planning and response capabilities, and drills are conducted regularly to test the readiness of its emergency responders. Many locations conduct emergency exercises with local authorities to ensure good communication and incident management. Additionally, OxyChem participates in Transportation Community Awareness and Emergency Response (TRANSCAER^®) training, during which the company works collaboratively with the railroads to provide hazardous materials training to emergency responders along rail routes.

As a regular practice in new projects, Oxy assesses potential social and environmental impacts concurrently. This approach provides a comprehensive process to identify and address stakeholder concerns.

Oxy's oil and gas segment has implemented a Social Responsibility Standard that defines business unit requirements for stakeholder relations, social risk management and quality of social programs to carry out Oxy’s Human Rights Policy and the Voluntary Principles on Security and Human Rights. The Social Responsibility Standard facilitates relationships with host communities and promotes Oxy's understanding of the communities' needs, concerns and connection with the company's operations.

In 2007, Oxy initiated the integration of its Social Responsibility Standard into the HES management system. Interdisciplinary teams of social responsibility, HES and operations personnel assessed the social responsibility baseline of international oil and gas operations to identify areas for improvement.  Facility-specific HES performance standards were also revised at several international oil and gas operations to address and measure social risk assessment, training, stakeholder engagement and related matters.

From the inception of its HESMS, Oxy has actively shared its programs through organizations such as the Global Environmental Management Initiative, the Corporate Environmental, Health and Safety Roundtable and the World Environment Center. Since Oxy’s HESMS predated certification programs, Oxy developed and continues to apply comprehensive internal processes, at the direction of the Environmental, Health and Safety Committee of the Board of Directors, to validate the effectiveness of its HESMS in identifying, assessing, communicating and managing potential HES risks. Some of Oxy’s international operations have also chosen to pursue certification of the HESMS by outside organizations under the international voluntary standard for comprehensive environmental management systems (ISO 14001). Oxy oil and gas operations in Qatar and Oman hold ISO 14001 certifications, as do OxyChem’s plant in Chile and an OxyChem joint venture in Brazil.