OXY
2024
SUSTAINABILITY REPORT
CREATING SHARED VALUE
COMMITTED ACTIONS, POSITIVE IMPACTS
CONTENTS
INTRODUCTION
3
Letter from Vicki
3
About Oxy
4
Oxy's Mission, Vision and Values
6
Health, Safety, Environmental and Sustainability (HSE&S) Principles
7
Our Sustainability Strategy
8
Our Climate Strategy
9
Stakeholder Engagement
10
Committed to Good: Contributions to Sustainable Development
11
2023 Performance Highlights and Progress on our Sustainability Pillars
13
PRINCIPLES OF GOVERNANCE
16
Board Composition and Practices
18
Enterprise Risk Management
22
Cybersecurity
23
Business Ethics and Human Rights
24
Public Policy Engagement and Lobbying
27
Oxy's Operating Management System
31
PEOPLE
37
Human Capital and Workforce Development
38
Health and Safety
54
Process Safety and Asset Integrity
62
Emergency Preparedness and Response
64
Promoting Transportation Safety
66
Product Stewardship
69
PLANET
70
Environmental Stewardship
71
Accelerating Carbon Innovation
72
Greenhouse Gas Emissions, Methane and Flaring
80
Other Air Emissions
83
Energy Utilization and Efficiency
84
Water Stewardship
86
Waste Management
94
Spill Prevention
98
Biodiversity, Land Use and Remediation
100
PROSPERITY
108
Community Engagement and Social Investment
110
Managing Our Supply Chain
130
Industry Engagement and Leadership
133
ABOUT THIS REPORT
135
Additional Oxy Reporting Guidance
136
Sustainability Report Topic Prioritization
137
APPENDICES
139
Oxy Sustainability Report 2024
Vicki Hollub
President and Chief Executive Officer
Vicki Hollub
President and Chief Executive Officer
It is with great appreciation that I reflect upon Oxy's recent sustainability accomplishments across our energy production, midstream and marketing, essential chemistry and carbon innovation businesses. To achieve Oxy's vision of a sustainable future, we have built an integrated portfolio of assets and infrastructure operated by remarkable people driven by passion to outperform.
Our comprehensive strategy starts with taking care of our people and upholding consistently high standards around the world. On the safety front, our company-wide employee Total Recordable Injury Rate (TRIR) was 0.21 in 2023, a 19% improvement from the previous year, while our contractor TRIR was consistent with our 2022 safety results. We also helped employees seize opportunities across our organization, with more than 20% of U.S. employees making moves through promotion or transfer. We added a new Talent Engagement and Employee Experience team to deliver the best experience possible to employees, and continued our leadership in Diversity, Inclusion and Belonging by hosting over 14 Employee Resource Group events. In June 2024, U.S. News & World Report recognized Oxy as one of its 2024-2025 Best Companies to Work For. Out of 3,000 large, publicly traded companies that were considered for the recognition, Oxy was among only 18% of companies that rated "Best" status. Additionally, we ranked in the #1 spot within the Mining and Raw Materials industry.
Oxy's efforts to decarbonize our own operations and advance technologies that will help others to do the same continues, with a reduction of the company's Scope 1 and Scope 2 greenhouse gas (GHG) emissions of 20.4% since 2019, and a 65.2% reduction in methane emissions over this period. We achieved a 67% reduction in routine flaring for global oil and gas operations from our 2020 baseline, while sustaining zero routine flaring in our domestic operations. To further worldwide industry efforts to reduce global emissions, we became an original signatory to the Oil and Gas Decarbonization Charter (OGDC) and committed funding to the World Bank's Global Flaring and Methane Reduction (GFMR) Partnership at COP28 in Dubai.
We significantly expanded our sustainability-focused investments and partnerships over the past year. These included our acquisition of all the outstanding equity of Carbon Engineering - our Direct Air Capture (DAC) technology partner of five years. Carbon Engineering's groundbreaking research and development will play an important role in our integrated Net-Zero Strategy and position us to accelerate cost reduction among our carbon removal offerings.
Construction of our first Direct Air Capture facility, STRATOS, is underway in Ector County, Texas, and on schedule to be commercially operational in mid-2025. Demonstrating that DAC is becoming an investible technology,
we formed a joint venture with BlackRock, one of the world's leading providers of investment, advisory and risk management services, to develop STRATOS, which will be the world's largest DAC plant when completed. Our 1PointFIve subsidiary is also making significant progress in creating a global market for carbon dioxide
removal credits (CDRs). In July 2024, 1PointFive announced a landmark deal with Microsoft, which agreed to purchase 500,000 metric tons of CDRs, the largest DAC CDR purchase to date. A commitment of this magnitude demonstrates how one of the world's largest corporations is integrating scalable DAC into its net-zero strategy, and the important role this technology will play in achieving global climate targets.
Also in support of our climate strategy, wholly owned Oxy subsidiary TerraLithium formed a joint venture in June 2024 with BHE Renewables, a wholly owned subsidiary of Berkshire Hathaway Energy. This partnership will further advance the demonstration and deployment of our patented Direct Lithium Extraction process and associated technologies to extract and commercially produce high-purity lithium compounds from geothermal brine.
In August 2024, we welcomed our new colleagues from CrownRock to Oxy. The CrownRock acquisition complements Oxy's premier Permian asset base and will enhance our sustainability strategy. Oxy and CrownRock have built leading positions in water recycling in the Midland Basin, and we look forward to integrating our substantial water processing capabilities to further enhance our proactive water stewardship.
We also work closely in the regions surrounding our operations, partnering with educational institutions, workforce development programs and community and environmental advocacy groups to ensure benefits from our projects flow to the local communities and promote greater prosperity. 2024 marks Oxy's 40th anniversary in the Sultanate of Oman where we serve as one of the country's leading international investors. Our 3,330 Omani employees comprise over 25% of our global employee base, and our capital investments and operations drive significant in-country value, contributing to 20,000+ contractor or supplier jobs and life-changing social investments. In the U.S., we expanded local partnerships, ranging from providing lifesaving equipment for first responders in the Permian Basin and supporting food banks across our multi-state operations, to donating more than 72,000 books to underserved communities in our hometown of Houston. We have also sponsored community events and meetings with local organizations to provide information to residents, address their questions and listen to their feedback about how we can extend our legacy as a Partner of Choice®.
Our 2023 progress demanded hard work and innovation by thousands of talented people across the organization. I would like to thank the dedicated Oxy workforce, as well as the communities that host our operations, for making what we do possible. I'd also like to thank our Board of Directors and its Sustainability and Shareholder Engagement Committee for their service and direction as we strive to lead our industries in high- performance oil and gas production, midstream and marketing, essential chemistry and carbon innovation.
INTRO
GOVERNANCE
PEOPLE
PLANET
PROSPERITY
ABOUT THIS REPORT
APPENDICES
About Oxy
Oxy's principal businesses consist of three segments: oil and gas, chemical and midstream and marketing. The oil and gas segment explores for, develops and produces oil (including condensate), natural gas liquids (NGL) and natural gas. Our subsidiary Occidental Chemical Corporation (OxyChem) primarily manufactures and markets basic chemicals and vinyls. The midstream and marketing segment purchases, markets, gathers, processes, transports and stores oil, NGL, natural gas, CO2 and power. It also optimizes its transportation and storage capacity, and invests in entities that conduct similar activities, such as Western Midstream Partners, L.P.
Within the midstream and marketing segment, Oxy Low Carbon Ventures (OLCV) seeks to leverage Oxy's legacy of carbon management in enhanced oil recovery (EOR) to develop Carbon Capture, Utilization and Storage (CCUS) projects, including the commercialization of Direct Air Capture (DAC) technology, invest in other low-carbon technologies intended to reduce greenhouse gas (GHG) emissions from Oxy's operations and strategically partner with other industries to help reduce their emissions.
We conduct operations internationally, with assets primarily in the United States, the Middle East and North Africa. We are one of the largest oil and gas producers in the U.S, including a leading producer in the Permian and Denver-Julesburg (DJ) Basins, and offshore Gulf of Mexico. We are regarded as a premier partner in Oman, the United Arab Emirates and Algeria.
Employees
124
3,420
17212,570
as of year-end 2023
8,854
North America
Latin America
Middle East
Other International
2023 Segment Earnings ($ Millions)
24
1,531
7,795
6,240
Midstream and Marketing
Oil and Gas
Chemical
2023 Daily Average Production (Mboe/d)
35
188 18%
145
1,223
271
584
Permian
82%
Domestic
Middle East
Gulf of Mexico
International
Rockies and Other Domestic
Algeria and Other International
Oxy Sustainability Report 2024
4
Oxy's Integrated Portfolio
as of year-end 2023
Permian
• Premier unconventional positions in the Delaware and Midland Basins
2.8 MM net acres
- 1.4 MM for unconventional - 1.4 MM for conventional
• Significant scale, technical capability and low-decline conventional production
• Strategic infrastructure and logistics hub in place
INTRO
GOVERNANCE
PEOPLE
PLANET
PROSPERITY
ABOUT THIS REPORT
APPENDICES
Rockies
• A leading position in the Denver-Julesburg Basin
0.7 MM net acres including vast minerals position
• Among the largest producers in Colorado with significant free cash flow generation
• Emerging Powder River Basin
0.3 MM net acres
• EOR advancements and CCUS potential for economic growth and carbon reduction strategy
Oxy Low Carbon Ventures
• Emerging low-carbon businesses commercializing
CCUS and DAC solutions
Gulf of Mexico
• Developing competitive-returns businesses with
cash flow stability
• 9 active operated platforms
• Significant free cash flow generation
• Sizeable inventory of remaining
Latin America
tie-back opportunities
• Deepwater exploration opportunities
OxyChem
Middle East / North Africa*
Algeria
Canada
Chile
Gulf of Mexico
Latin America
Oman
UAE
U.S.
* Oxy applies operational control as our primary organizational boundary for climate and sustainability reporting. Algeria, Al Hosn and Dolphin are joint ventures in which Oxy is a participant but is not the
operator. We include them here as their operations generate significant value for Oxy and our partners. See About this Reportfor further information on our reporting boundaries.
5
INTRO
GOVERNANCE
PEOPLE
PLANET
PROSPERITY
ABOUT THIS REPORT
APPENDICES
Oxy's Mission
We dare to do what others won't.
Oxy's Vision
We will lead the industry by reaching for the impossible, then achieving it. We do this by having the right assets in the hands of remarkable people driven by passion to outperform.
Safah Field, North Oman
Oxy's Values
Lead with Passion
We love what we do and make sure it shows. We aim to revolutionize the industry.
Outperform Expectations
We demand excellence from ourselves always. We think boldly so we can go farther, faster.
Deliver Results Responsibly
We hold ourselves accountable. We never stop building value.
Unleash Opportunities
We unlock potential others don't see. We take calculated business risks others won't dare.
Commit to Good
We do the right thing no matter what. We take care of each other, our company, and our world.
Oxy Sustainability Report 2024
6
INTRO
GOVERNANCE
PEOPLE
PLANET
PROSPERITY
ABOUT THIS REPORT
APPENDICES
Health, Safety, Environmental and Sustainability
(HSE&S) Principles
These principles, approved by our Board of Directors in 2022, unify our workforce around key issues, frame our engagement with stakeholders, and exemplify our core values in practical, actionable ways.
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 health, safety, environmental 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 UN Sustainable Development Goals.
Oxy Sustainability Report 2024
7
INTRO
GOVERNANCE
PEOPLE
PLANET
PROSPERITY
ABOUT THIS REPORT
APPENDICES
Our Sustainability Strategy: Integrating Sustainability into Everyday Operations
Oxy's integrated business model unifies our talented, diverse workforce with best-in-class assets and industry leadership to advance innovative solutions to global challenges in accordance with our HSE&S Principles. Founded in 1920, Oxy's success is built on our core values, technical expertise, business acumen, strong partnerships and our ability to deliver lasting results.
We value our reputation as a Partner of Choice®. We are dedicated to:
Operating responsibly
Protecting the environment and
Upholding and promoting human rights
minimizing our footprint
Providing safe, healthy and
Maintaining high ethical standards
Benefiting our stakeholders
secure workplaces
Contributing to our neighboring communities and regional economies
Respecting cultural norms and values everywhere we operate
Our employees lead and innovate for the acceleration of a successful transition to a low-carbon future while providing the reliable energy and chemicals essential to society. A big part of this effort is the ongoing evaluation of ways in which we can integrate sustainability throughout the company, improve our programs and performance, and transparently share our progress with stakeholders.
Our sustainability strategy is organized around four pillars:
GOVERNANCE
PEOPLE
PLANET
PROSPERITY
Key focus areas:
Key focus areas:
Key focus areas:
Key focus areas:
Corporate Governance
Talent Attraction, Retention and Advancement
GHG Emissions and Climate Change
Community Engagement
Risk Management
Diversity, Inclusion and Belonging (DIB)
Water Stewardship
Social Investment
Cybersecurity
Health and Safety of our Workforce
Waste Management
Supply Chain Management
Public Policy Engagement
and Communities
Biodiversity and Habitat Conservation
Business Ethics
As part of our commitment to sustainability, Oxy strives to diligently identify and address our key risks and opportunities. We integrate our sustainability pillars and HSE&S Principles into our strategic planning and investment decision-making processes and routinely perform risk assessments to support readiness for emerging challenges and opportunities.
OxyChem's approach to sustainability and stewardship aligns with Oxy's HSE&S Principles. OxyChem is a leading producer of life-enhancing chemistry as well as a central contributor to our role as an innovative and sustainable industry leader.
Oxy Sustainability Report 2024
8
Our Climate Strategy: Building to Net-Zero
In 2020, Oxy was the first U.S. oil and gas company to announce goals to achieve net-zero GHG emissions for our total emissions inventory including use of sold products. These goals include achieving net-zero GHG emissions (i) from our operations and energy use before 2040, with an ambition to do so before 2035, and (ii) from our sold products, with an ambition to do so before 2050.
We currently have several short- and medium-term targets to support these overarching net-zero goals and ambitions. Oxy's HSE&S Principles reflect our ambitious net-zero goals and strategy to advance the goals of the Paris Agreement, our collaboration with host communities in the transition to a net- zero economy, and our drive to provide innovative products, services and solutions to address global challenges.
Our Net-Zero Strategy describes the multiple pathways through which we aim to meet our sustainability goals, achieve a successful net-zero transition and help others to do so. Central to this strategy is our development and commercialization of technologies that lower both GHG emissions from industrial processes and existing atmospheric concentrations of CO2. Oxy believes that carbon removal technologies, including DAC and CCUS, can, given the necessary incentives for their development and deployment, provide essential CO2 reductions to assist the world's transition to a less carbon-intensive economy.
INTRO
GOVERNANCE
PEOPLE
PLANET
PROSPERITY
ABOUT THIS REPORT
APPENDICES
Oxy's originalNet-ZeroStrategydiagram from our 2021 Climate Report
Oxy Sustainability Report 2024
9
INTRO
GOVERNANCE
PEOPLE
PLANET
PROSPERITY
ABOUT THIS REPORT
APPENDICES
Stakeholder Engagement
Stakeholder engagement is a central activity with us at Oxy and a catalyst for ongoing improvement in our policies, practices and reporting. We work to build trust through regular and transparent communication and engagement with shareholders, employees, policy makers, environmental organizations, business partners and community leaders and neighbors where we operate.
Oxy's stakeholder engagement process includes the identification of key stakeholders, an assessment of stakeholder interests and issues, an evaluation of the community's socioeconomic needs if applicable, and the development and implementation of a stakeholder engagement plan. We use a variety of methods and metrics, such as priority topics assessments and value chain impact mapping, to discern and assess important sustainability issues raised by internal and external stakeholders. Our goal is to understand and proactively address issues to develop beneficial outcomes.
Members of the Board's Sustainability and Shareholder Engagement (S&SE) Committee engage with shareholders periodically, oversee Oxy's shareholder engagement program, and report shareholder views to the Board. We regularly meet with shareholders to hear their views on governance, human capital and Oxy's Net-Zero Strategy, among other ESG topics.
Shareholder engagements in recent years have resulted in enhancements to Oxy's sustainability programs and disclosures such as:
The content coverage of our climate and sustainability reports
Matters related to corporate governance, including the adoption of proxy access and amendments to our charter that facilitate shareholders' ability to act by written consent and call special meetings
The executive compensation program, including the design of the short-term incentive program.
Our President and CEO, members of the Board and our Corporate Secretary, alongside representatives of our Investor Relations, Human Resources and Environmental and Sustainability teams, also regularly engage with a wide range of other stakeholders on sustainability matters pertinent to Oxy-includingclimate-related risks and opportunities. These engagements include our approach to carbon management and the policies, technologies and market mechanisms that advance our net-zero goals and those of other industry sectors. We welcome and consider feedback from shareholders and other stakeholders on our performance, engagement and reporting.
This process informs our sustainability strategy and programs, which helps us to improve transparency and report on the issues that matter most to our stakeholders.
Oxy's strong community engagement promotes deep relationships that benefit our communities, our workforce and our shareholders. We recognize and respect our neighbors and local community members from all backgrounds as stakeholders. Their input provides valuable insight into local needs and interests, ways we can augment our projects by addressing their questions and concerns, and how our presence can enhance the community. Informed by that dialogue, we seek to invest our time and resources in programs and initiatives that support the areas surrounding our operations, with an emphasis on disadvantaged communities, and programs that promote mutually beneficial and inclusive relationships with
our neighbors.
Oxy also engages with host governments, non-governmental organizations (NGOs), non-profit organizations, unions, community leaders, and other stakeholders to advocate for policies that serve the UN Sustainable Development Goals (SDGs) relevant to our businesses and the goals of the Paris Agreement. We believe these collaborations position Oxy, our shareholders and our communities for success and reinforce our reputation as a respected Partner of Choice®.
Members of the Oxy and 1PointFive teams with Bill Gates at King Ranch, Tx
Oxy Sustainability Report 2024
10
Disclaimer
OXY - Occidental Petroleum Corporation published this content on 30 August 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on August 30, 2024 at 21:25:02 UTC.