A proven performer in the oil and gas industry, achieving growth with responsibility

Oxy’s Social Responsibility Program unifies our core values of safety, integrity and respect for people and the environment. Our companywide commitment to social responsibility is integral to the way we conduct our business.

Dedicated to operating responsibly, we continually strive to maintain high ethical standards; provide safe, healthy and secure workplaces; protect the environment; uphold and promote human rights; and respect cultural norms and values throughout our worldwide operations. We proactively engage with communities and stakeholders, and generate positive economic impact far beyond our oilfields and chemical plants. The favorable outcomes of these efforts help to sustain Oxy’s reputation as a respected and responsible producer of oil and gas and chemicals.

Oxy systematically implements social responsibility practices in our daily operations through our longstanding Health, Environment and Safety (HES) Management System. By integrating social responsibility with HES, we ensure that the tenets of both programs contribute consistently to business decision-making throughout the life of every project. This facilitates continuous improvement and strengthens Oxy’s performance — benefiting the company, our workforce and the communities in which we operate.

We take pride in the company’s exemplary safety record, which consistently makes Oxy one of America’s safest employers — not just in the oil and gas industry, but in any business sector. This achievement is reflected in our low Injury and Illness Incidence Rate (IIR), a U.S. Department of Labor metric indicating recordable injuries and illnesses per 100 full-time workers per year. Oxy’s 2010 worldwide employee IIR of 0.40 is our second-best ever, significantly outperforming the all-U.S. industry average of 3.6 reported by the U.S. Bureau of Labor Statistics in 2009. Our worldwide contractor IIR of 0.78 in 2010 also was Oxy’s second-best result ever.

Along with safety, Oxy maintains a deep commitment to protecting the environment. Our responsible stewardship can be seen companywide. We continually strive to cost-effectively reduce emissions at our plants and facilities; enhance energy efficiency and mechanical integrity in our operations; and support biodiversity and habitat conservation programs at our properties.

Oxy is extensively engaged in capturing, recycling and injecting carbon dioxide (CO2), as evidenced by our industry leadership in CO2 injection for enhanced oil recovery (EOR). Because CO2 EOR sequesters CO2 in reservoirs deep underground, this technique could play an important role in reducing future greenhouse gas emissions as more man-made sources of CO2 are captured.

As a responsible and responsive partner, neighbor and employer, Oxy frequently interacts with communities, governments, investors and others impacted by our operations and performance. Before starting a project in a new business location, we first assess what Oxy’s presence will mean for the neighboring community and surrounding region. We work to maintain our engagement throughout Oxy’s involvement in the project, addressing any concerns that may emerge.

Oxy makes significant contributions to economic growth. We provide employment opportunities to local workers and build the capacity of national workforces through the transfer of skills and technology. In addition, everywhere we operate, we strive to build mutually beneficial relationships that enhance the quality of life in neighboring communities and promote local economic development and sustainability.

Last year we received high governance and sustainability index ratings from several entities, including GovernanceMetrics International (GMI), which assigned Oxy an overall perfect 10 ranking in June 2010.

Following the 2010 advisory vote of stockholders on executive compensation, Oxy expanded its ongoing dialogue with stockholders and certain investor advisory groups to seek added input on the company’s executive compensation program. In the fourth quarter of 2010, we announced significant changes to our executive compensation program reflecting suggestions from stockholders and their representatives.

Acknowledging our strong overall social responsibility performance, Forbes named Oxy to its 2010 list of America’s 20 Most Responsible Companies. We also were included on the Fortune list of the World’s Most Admired Companies, ranking No. 1 in the Mining, Crude-Oil Production category; among the Global 1,000 Sustainable Performance Leaders; and on Corporate Responsibility Magazine’s 12th Annual (2011) Best Corporate Citizens list. Social responsibility at Oxy is not merely good for business — it is everyone’s business.

As illustrated throughout our Social Responsibility Report, we work hard to be the employer of choice, neighbor of choice and partner of choice, everywhere we operate.