Principles of Governance

SUSTAINABILITY STRATEGY

Oxy is progressing its vision as an innovative and sustainable energy leader with industry-leading initiatives and investments to enable a low-carbon future. As part of our commitment to sustainability in all facets of our business, Oxy strives to diligently identify and address our key ESG risks and opportunities. We integrate ESG criteria into our strategic planning and investment decision-making process and perform routine risk assessments to support readiness for emerging challenges and opportunities.

Oxy’s Health, Safety, Environmental and Sustainability Principles Underpin Our Operational Management System

Health, Safety and Environmental (HSE) and Sustainability performance is fundamental to Oxy’s core values and to the success of our business. In 2022, Oxy’s Board of Directors updated its longstanding HSE and Sustainability Principles that set forth our enduring commitment across our worldwide operations to:

• Design and conduct safe, reliable and sustainable operations that promote worker and public health and safety, product stewardship and environmental quality.

• Respect the laws and values of communities where we operate and participate constructively in legislative and regulatory development.

• Conserve natural resources, including biodiversity, wildlife, habitat, water and energy, and manage resources responsibly.

• Advance the circular economy through waste minimization, reuse and recycling and extending the productive lives of our property, plants and infrastructure.

• Evaluate and mitigate potential risks and impacts to people and the environment.

• Pursue our ambitious goals of net-zero greenhouse gas emissions in our operations and products to further the goals of the Paris Agreement.

• Report on our performance and engage with shareholders and other stakeholders to enhance HSE and sustainability programs.

• Collaborate with host communities to contribute to their vitality in the transition to a net-zero future.

• Provide innovative products, services and solutions to help host governments, partners, suppliers and customers address global challenges, achieve net-zero goals, and advance the U.N. Sustainable Development Goals.

We’re implementing the Principles through our Operational Management System, reflecting our focus on leadership, operational excellence, risk management and continuous improvement. Our dedicated workforce recognizes that the programs, practices and technologies we deploy to promote health and safety, enhance air and water quality, and protect habitat and biodiversity also strengthen our business, improve our products and services, and advance our net-zero strategy.

Sustainability Reporting Process and Alignment with Reporting Frameworks

Oxy’s sustainability reporting process is informed by IPIECA's Sustainability Reporting Guidance and our performance disclosures are aligned with the Value Reporting Foundation using the SASB Standards for the Oil & Gas and Chemicals sectors and the American Chemistry Council’s Responsible Care® initiative. The World Economic Forum and its International Business Council’s (WEF-IBC) Four Pillars of Stakeholder Capitalism (Principles of Governance, Planet, People, Prosperity) represent key areas of strategic focus for Oxy, and they will guide our reporting as we continue to implement and enhance sustainable business practices and disclose performance.

CORPORATE GOVERNANCE 

Our senior management team and Board of Directors are committed to high standards of ethical conduct, institutional integrity and effective corporate governance in every part of our business. We are dedicated to respecting the environment, operating safely and upholding high standards of ethics and sustainability throughout the company's worldwide operations.

Our governance policies are reviewed and updated periodically to reflect changing laws and regulations, evolving best practices and shareholder feedback. They generally align with the Investor Stewardship Group’s Corporate Governance Framework for U.S. Listed Companies.