Occidental's Social Responsibility (SR) reporting focuses on the policies, objectives, performance and activities of the company and its subsidiaries. This website provides updates to our 2015 year-end performance and information on activities implemented and achievements in 2015 and 2016.
To continually improve transparency and provide relevant information to our stakeholders, we have elected to use our website as the primary medium for environmental, social and governance (ESG) -related reporting. The process of engaging with stakeholders and reporting is informed by
IPIECA's Sustainability Reporting Guidance (third edition, 2015 release). Occidental reports annually to the CDP on its climate change and water programs. Occidental also reports directly to Bloomberg in support of its ESG data platform.
Seven reporting principles guide the structure and content of Occidental's SR reporting.
Relevance – The content covered in this website is aligned with the IPIECA Guidance representing industry consensus on the most relevant sustainability issues and the topics that Occidental considers most significant to our business operations and stakeholders.
Scope – Our website reporting provides updated information on our global operations, SR programs and performance and their effect on our stakeholders including employees, contractors, stockholders, governments and the communities where we operate. Supplemental information related to our SR framework, SR programs and risk management is included in our SR Overview Report, 'Partner of Choice®', and in our annual financial reports.
Boundary – Our SR web content includes Occidental's oil and gas, chemical and midstream and marketing assets and facilities we operate. Quantitative data are based on Occidental's share of ownership in facilities that we operate; are not adjusted for terms of Production Sharing Contracts; and do not include non-operated assets, outside-operated joint ventures or facilities, customers or other end-users of Occidental's products.
Integration and Alignment – As part of our reporting process, Occidental's executive and board leadership are engaged to align strategic focus and to set long-term direction. Operationally, Occidental's formal Health, Environment and Safety Management System (HESMS) sets consistent worldwide expectations and standards for business managers and helps employees across our operations assess and manage performance and risks.
Credibility – We develop and review our disclosures and data with our business units and central functions, provide supporting data and balanced information on SR performance, and explain the basis for our estimates.
Transparency – We provide clear, understandable, factual information to address topics in which our key stakeholders have expressed an interest, while preserving confidential business information.
Timeliness – Annual performance data and the representation of assets communicated on the SR website are through fiscal year-end 2015, except where indicated. We periodically review our disclosures and, as additional information becomes available, the website will be updated.
Stakeholder engagement is both a central activity at Occidental and a catalyst for continuous improvement in our social responsibility policies, practices and reporting. We are committed to building trust with our stakeholders through regular and transparent communication and consistent actions. By providing fresh perspectives to emerging risks and opportunities, Occidental welcomes constructive engagement with its stakeholders. Stakeholder engagement covers a wide range of activities, from discussion of specific projects with neighbors and permitting authorities, to interaction with community representatives and civic organizations to identify how the company can assist in sustainable and inclusive economic development.
Occidental's key stakeholders are those persons and institutions with a direct interest in the manner in which the company conducts its business, including: employees, stockholders, contractors and suppliers, regulatory agencies and the communities surrounding Occidental's operations. Occidental also engages with other external stakeholders including trade and professional associations, non-governmental organizations (NGOs) and academic institutions to understand their interests and to pursue constructive interactions and outcomes.
Occidental draws upon topics of significance to its key stakeholders and business operations to guide its SR reporting. In order to appropriately tailor its actions to the communities in which we operate, Occidental's business management at each location leads stakeholder engagement and local community development initiatives. While Occidental's social and economic development efforts vary with the diversity of its business locations, the company's commitment to positive community outreach and impacts applies throughout its operations in North America, the Middle East and Latin America.
Notable examples of Occidental's approach to stakeholder engagement include its efforts in Colombia, where Occidental works collaboratively with local communities to plan and implement investments. The Colombian Ministry of Environment and regional environmental agencies specify health, environment, safety and social permit conditions for oil and gas development projects in Colombia. Each year, Occidental engages with dozens of local community action councils known as Juntas de Acción Comunal and seeks its guidance to prioritize and allocate annual social investments. Community meetings are held throughout the year to discuss the status of social investment projects, monitor progress and evaluate results.
Similarly, OxyChem representatives regularly engage with their local stakeholders through Community Advisory Councils (CACs) and citizen's groups. OxyChem's plant personnel in La Porte and Deer Park, Texas, for example, have long-established roles in CACs that comprise a cross-section of industrial and community representatives from the Houston Ship Channel area. During CAC meetings, which are held approximately once per month, community members learn about and discuss the plant's operations and projects, including safety and environmental performance. This approach has enhanced understanding and transparency, and cultivates community trust and industry collaboration.
Occidental routinely engages with its industry peers and others as a member of numerous organizations committed to promoting responsible business practices. Examples include:
American Chemistry Council (ACC)
American Fuel & Petrochemical Manufacturers (AFPM)
American Petroleum Institute (API)
The Chlorine Institute (CI)
Global Oil and Gas Industry Association for Environmental and Social Issues (IPIECA)
Society of Petroleum Engineers (SPE)
Mary Kay O'Connor Process Safety Center, Texas A&M University
Collectively, input from stakeholders and external reviewers has enhanced Occidental's SR program. We monitor external trends, industry leadership, standards bodies and capital market influences to refine our operational priorities and focus on long-term value creation. These inputs enable critical self-evaluation and drive continuous improvement in our reporting process.
Occidental welcomes and considers all feedback from stakeholders on its SR performance, initiatives and reporting. Please contact us with questions or comments.