Chevron

RATING

SECTOR

Oil & Gas Operations

WEBSITE

CONTACT

6001 Bollinger Canyon Road

San Ramon, CA 94583, USA

Telephone: +1 925.842.1000

STOCK EXCHANGE

LISTING

  • 2020 Human Rights Campaign Equality Index, Chevron achieved a rating of 100 percent 
  • 2019 Best Places to Work – The Employees’ Choice Awards, Glassdoor
  • 2019 “Just 100” – Forbes and Just Capital –  companies that are taking the public interest into their own hands and generating better returns
  • 2019 Secretary of Defense Employer Support Freedom Award, the nation’s highest honor for exemplary support of National Guard and Reserve employees.
  • Dow Jones Sustainability Index 
  • Chevron received the 2019 Best Employer Award in the “Best Asian Pacific American Employee Resource Group”  By Asia Society
  • 2019 Disability Equality Index, 2019 Best Places to Work for People with Disabilities
  • 2019 “Best Employers for Women,” Forbes and Statista 
  • Top 30 companies for Hispanic/Latino diversity and inclusion – Chevron earned top five-star ratings in the categories of “Employment” and “Governance” for its excellence in supporting Hispanic/Latino diversity and inclusion.
  • 2019 Top 50 STEM Workplaces for Native Americans, Best Places to Work for Women, Winds of Change – #15
  • 2019 National Business Inclusion Consortium Best-of-the-Best Top 30 Corporations for inclusion.
  • Hispanic Association on Corporate Responsibility 5-star rating in Employment and Governance
  • JUST Capital Top 100 U.S. Companies Supporting Healthy Communities and Families

EMPLOYEES

48,200

CHIEF SUSTAINABILITY OFFICER

Bruce L. Niemeyer

AWARDS

  • 2019 Chairman’s Award – The National Association of Black Engineers 
  • 2019 Women in Engineering Trailblazer Award – Women in Engineering, ProActive 
  • American Chamber of Commerce Thailand CSR Excellence Recognition Award 
  • Verdantix International Environmental Health and Safety Innovation Award recipient, Oil & Gas  

CONTENT SOURCE

FURTHER READING

Report created by Kavita Kripalani

Chevron

SECTIONS :  Sustainability    Evaluation  •  Progress  •  Watch  •  Overview

 

Company Activity

Chevron Corp. engages in the provision of administrative, financial management, and technology support for energy and chemical operations. It operates through the Upstream and Downstream segments. 

The Upstream segment consists of crude oil and natural gas exploration, development & production, liquefaction, transportation & regasification associated with liquefied natural gas, transporting crude oil by major international oil export pipelines, processing, transporting, storage & marketing natural gas, and a gas-to-liquids plant. 

The Downstream segment comprises of refining crude oil into petroleum products, marketing crude oil and refined products, transporting crude oil and refined products by pipeline, marine vessel, motor equipment & rail car, and manufacturing & marketing commodity petrochemicals, plastics for industrial uses, and fuel & lubricant additives. 

The company was founded in 1906 and is headquartered in San Ramon, CA.

Company Sustainability Activity

For 140 years, the people of Chevron have been solving the most complex energy challenges against the backdrop of ever-changing expectations.

This legacy informs their approach to everything they do — from high ethical standards and a passion for operational excellence to strict capital discipline and transparent risk management. 

They aim to be the leader in the future of energy, known for delivering responsible and sustainable results. This mindset pushes them to invest in cutting-edge technologies, strive for new innovations and develop the next generation of problem-solvers.

 

Targets

  • Established four goals to reduce net greenhouse gas (GHG) emissions by 2023:
    • Lower oil net GHG intensity 5–10% 
    • Lower gas net GHG intensity 2–5%
    • Lower flaring intensity 25–30%
  • Lower methane emissions intensity 20–25%
 

Progress

Carbon Capture

  • Carbon capture, utilization and storage (CCUS) is part of a portfolio of emerging GHG-mitigation technologies that could help manage future emissions, although the economics of this technology remain challenging. 
  • According to the IEA, CCUS is an important tool for mitigating GHG emissions and meeting the goals expressed in the Paris Agreement. CCUS is one of the key focus areas for the OGCI’s $1 billion+ investment fund, which aims to invest in projects that demonstrate commercial viability and scalability.
  • Chevron has invested approximately $1.1 billion in CCUS projects, which, once operational, are expected to reduce GHG emissions by about 5 million metric tons per year, approximately the equivalent of GHG emissions attributable to 620,000 U.S. homes’ annual electricity usage. 
  • Chevron has invested more than $75 million in CCUS research and development over the past decade.

Renewable power purchase agreements 

  • They are executing renewable power purchase agreements (PPAs) to supply energy to their operations. 
  • In 2018, they executed a PPA for solar power at our Lost Hills Field. 

Renewable fuels 

  • Biofuels, such as renewable diesel, that complement conventional transportation fuels can play an important role in reducing the carbon intensity of transportation fuels while helping meet the world’s growing energy needs. 
  • In 2017, Chevron began to distribute diesel fuel containing between 6 and 20% renewable diesel
  • In 2018, Chevron began to sell renewable diesel—R99— to commercial customers.

Renewable energy 

  • Chevron’s goal is to continue to understand and evaluate the economic viability of renewable energy sources. They conduct internal research and collaborate with governments, businesses and academia to develop alternative and renewable energy sources.

Flaring reduction 

  • Methane accounts for about 5% of Chevron’s total GHG emissions. Approximately a third of the 5% are considered fugitive emissions, or leaks from equipment and piping. Of the remaining methane emissions, most are generated by flaring and venting. 
  • Since 2013, Chevron has reduced flaring and associated emissions by 22%. They have developed internal country specific plans to minimize gas flaring, and they are a member of the World Bank–led Global Gas Flaring Reduction Partnership
  • Chevron flares natural gas only when required for safety and operational purposes and in areas where pipelines and other alternatives for transporting gas do not exist.

Managing fugitive methane emissions 

  • They design, construct and operate their facilities with an eye toward reducing emissions and limiting fugitive emissions with regular inspections and safety tests. 
  • To more efficiently track fugitive emissions, they use infrared cameras in select oil and gas operations to help pinpoint and remedy leaks. 
  • Their leadership in this area includes being a founding member of the American Petroleum Institute–led Environmental Partnership
  • They have retrofitted or replaced more than 1,000 high-bleed pneumatic controllers from onshore U.S. facilities to reduce emissions. 
  • In addition to making operational commitments, Chevron has participated in workshops to share best practices with other operators and has taken action to implement the lessons learned from these workshops. 
  • In addition, Chevron provides financial and technical support to research efforts, including the Collaboratory to Advance Methane Science and the OGCI
  • Chevron continues to serve on the Industrial Advisory Board of the Methane Emissions Test and Evaluation Center (METEC), a Colorado State University and U.S. Department of Energy advanced research facility.

Managing water resources 

  • Water plays a critical role in both the development and processing of oil and natural gas. 
  • Chevron strives to conserve, reuse and recycle water in water-constrained areas
  • Chevron monitors the amount of both fresh and non-fresh water withdrawn across the enterprise, and found that from 2013 through 2017, Chevron’s withdrawal of fresh water decreased by 20%.

Managing water use in hydraulic fracturing 

  • Chevron strives to reduce the amount of freshwater used in their hydraulic fracturing, “fracking, operations. Hydraulic fracturing involves injecting a mixture of fluids under high pressure into deep shale formations, creating hairline cracks through which previously inaccessible oil and natural gas molecules can flow. 
  • Hydraulic fracturing in the Permian Basin, Chevron endeavors, whenever possible, to use brackish water, which is not suitable for human consumption or agricultural use. More than 95% of the water used in their well completions in the Permian Basin is from brackish water sources.

Water recycling at our refineries 

  • They partner with local communities to reuse water
  • For over a decade, Chevron has provided capital and operational funding to the East Bay Municipal Utility District for a facility in Richmond, California. 
  • Over the past three years, more than 40% of the water used by the Richmond Refinery was recycled water, making it the largest user of recycled water in the San Francisco Bay Area.

Chevron Technology Ventures 

  • Chevron Technology Ventures (CTV) pursues new business solutions and innovative technologies that have the potential to enhance the way Chevron produces and delivers affordable, reliable, ever-cleaner energy. 
  • CTV fosters innovation outside and inside Chevron, supporting vibrant startup ecosystems externally and championing technology integration and innovation internally. 
  • CTV has actively managed an investment portfolio since 1999. 
  • In 2018, CTV announced the launch of its Future Energy Fund. With an initial commitment of $100 million, the Chevron Future Energy Fund was established to invest in breakthrough technologies that enable the ongoing transition to a greater diversity of energy sources, advancing carbon emission reductions from oil and gas, as well as exploring other efficient and low-carbon energy value chains.
 

Certificates

  • LEED Gold Certification – Midland, Texas and San Ramon, California
  • EDGE certification – Rated among top certified companies for gender equality

United Nations Sustainable Development Goals

United Nations SDGs Compliance

SDG 3

  • Chevron continually invests in programs that create local partnerships and build capacity, such as Chevron Australia’s new innovative Reconciliation Action Plan (RAP). 
  • They partner with the Heart Foundation to support the Pilbara Aboriginal Heart Health Program and fight heart disease, which is the leading cause of death for Aboriginal and Torres Strait Islander Australians. 
  • They work with local leaders, such as Yorga Djenna Bidi graduates, and community groups to deliver culturally appropriate heart health activities and education to help reduce cardiovascular disease and close the gap in life expectancy among the Onslow, Karratha and Roebourne communities in Western Australia. 

SDG 4 

  • Chevron invests in a comprehensive range of educational activities. 
  • They encourage students to pursue STEM opportunities, provide career, teacher & technical training, and they form innovative partnerships with universities and other stakeholders. 
  • Chevron’s Enjoy Science Project is a $30 million, five-year program to strengthen STEM and vocational education across schools in Thailand. The program is on track to improve STEM instruction at more than 600 schools, build capacity for approximately 10,000 teachers and directly impact 500,000 people

SDG 7

  • At Chevron, they deliver the energy that improves lives and enables human progress. There are 7.6 billion people on the planet today. By 2040, there will be over 9 billion, leading to a 30 percent increase in energy demand. 
  • Today, nearly 1 billion people have little or no access to affordable and reliable energy. Chevron leverages their people and expertise to solve this complex problem by developing more energy while protecting the environment. 

SDG 8

  • In February, Chevron announced a $5 million grant to Catalyst, a global nonprofit advancing workplace gender equality with whom they partnered in 2016 to launch the Men Advocating Real Change (MARC) global program. 
  • The grant is the largest Catalyst has received in its more than 50-year history and will allow the organization to continue its groundbreaking research, programming, products and events aimed at accelerating gender inclusion across all industry workforces. 

SDG 13

  • Chevron is working to address the impacts of a changing climate by delivering affordable, reliable, ever-cleaner energy
  • Reducing their climate action emissions
  • Investing in lower-carbon energy breakthroughs

Secondary SDGs: 1, 2, 6, 8 

Evaluation

Chevron explicitly aligns with specific UN SDGs, communicates their progress clearly, and sets some important targets. 

The company has few certificates, but decent awards and listings. 

The company produces a report and sustainability website with specific targets and goals for reducing their CO2 emissions, energy consumption, waste water conservation, carbon capture, renewable energy, human rights, and supplier ethics in alignment with the UN Sustainable Development Goals.

However, the company has been engaging in unsustainable behavior and continues to do so. 

Although it has made decent attempts to find sustainable alternatives, it is not enough to compensate for the damage it has caused and continues to cause for the environment and human health. 

Chevron’s progress is evident, but the company must do much more to offset the impact of their harmful energy extraction processes. This company has been rated a C. 

Analyst Outlook: Negative

Although Chevron’s metrics show that they are moving in the right direction toward sustainability, they should set much more ambitious targets since their business depends on unsustainable activities. 

 

Key Points

  • Chevron is the second largest U.S.-based oil producer
  • Giant oil company Texaco, bought by Chevron in 2001, operated in Ecuador from 1964 to 1992. Chevron has admitted that Texaco dumped over 18.5 billion gallons of toxic water into the rainforest during this period – about 4 million gallons daily at the height of its operation – contaminating two million acres of the Ecuadorian Amazon. This is one of the world’s greatest environmental disasters, with the amount dumped or spilt estimated to be roughly 30 times the amount discharged in the Exxon Valdez disaster.
  • Chevron has campaigned against the Ecuadorian judgment being enforced anywhere. Amazonwatch reports that Chevron is already spending an estimated $400 million per year just in legal fees, dwarfing the $40 million it claims it spent on a woefully inadequate clean-up in Ecuador.
  • Chevron-Texaco has sought to retrospectively use bilateral investment treaties between the US and Ecuador to avoid responsibility even though this trade agreement took effect five years after Texaco ended operations in Ecuador in 1992. 
  • Chevron-Texaco has sought to dismiss the validity of the Ecuadorian court judgment by taking action against the Ecuadorian government in The Hague’s Permanent Court of Arbitration – though it was the Amazon Defense Front, which is suing them not the Ecuadorian government.
  • Chevron refuses to pay the $9.5 billion in damages they owe to Ecuadorians
  • The population in closest proximity to the Chevron refinery looming over Richmond, California  has disproportionately high rates of cardiovascular disease and cancer. Data from the California Environmental Protection Agency places every community bordering the Chevron facility in the 99th centile for asthma.
  • There have been periodic incidents at Chevron’s Richmond refinery, including flaring and even explosions. In its 2012 explosion, 1,700 people ended up in the hospital. 
  • Their flaring incidents seem to occur frequently each year. Unknown quantities of sulfur dioxide and hydrogen sulfide may have been released into the atmosphere during the incidents. 
  • Chevron is making strategic efforts to limit flaring
  • The company has visibly committed to various sustainable business practices, including human rights, supply chain, conflict minerals, responsible investment, modern slavery transparency and labor policies.
  • In February 2021, an estimated 600 gallons of oil spilled from Chevron’s Richmond refinery into the San Francisco Bay

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