Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Governance
• Environmental Stewardship
• Social Responsibility

Environmental Achievements

• Reduced truck mileage by 1.5 million miles in the Permian Basin through Aventine logistics hub.
• Construction of a 16-megawatt solar field in the Permian Basin (to be completed in late summer 2019).
• Engineering study underway for a two-gigawatt solar steam generating facility in the Middle East, potentially saving over 725,000 tons of CO2 emissions per year.
• Reduced gas flaring emissions in Qatar by more than 99 percent since 2005.
• Reduced gas flared in Oman from over 10 billion cubic feet per year to 2.4 billion cubic feet per year (a decrease of over 75%).
• Reduced gas flaring emissions intensity by approximately 17 percent at EOR plants in the Permian Basin from 2016 to 2018.
• OxyChem's hydrogen fuel use resulted in 3.8 million metric tons of cumulative GHG emissions avoidance through 2017.
• Heat recovery units at Mukhaizna Field in Oman reduced emissions by 2.7 million metric tons of CO2e since 2010.

Social Achievements

• Launched Oxy Low Carbon Ventures (OLCV), a subsidiary dedicated to advancing low-carbon technology solutions.
• Expanded the sustainability component of the annual cash incentive award in the executive compensation program, including quantitative targets tied to CCUS advancement.
• Active stakeholder engagement with investors and ESG groups.

Governance Achievements

• Board oversight of climate risks and opportunities, including annual strategy reviews.
• Two Board committees (Environmental and Corporate Governance, Nominating and Social Responsibility) oversee ESG and sustainability matters.
• Several directors with expertise in ESG and sustainability issues.
• Increased assumed price on CO2 emissions from $40 to $50 per metric ton for new projects over $5 million in capital commitment.

Climate Goals & Targets

Environmental Challenges

• Climate-related risks, including physical risks (flooding, extreme weather) and transition risks (regulatory changes, market shifts).
• Reducing Scope 3 emissions (emissions from the use of sold products).

Mitigation Strategies

• Integrating climate-related risks into strategic planning and investment decision-making.
• Performing routine risk assessments.
• Carbon price sensitivity analysis for major projects ($50/metric ton).
• Portfolio review process using IEA scenarios (Sustainable Development Scenario).
• Investing in CCUS technologies and projects.
• Developing a metric to reflect Occidental's overall impact on atmospheric CO2 concentrations.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Extreme weather
• Natural resource stresses

Transition Risks

• Regulatory changes
• Market shifts
• Carbon pricing

Opportunities

• CCUS technologies and projects
• Low-carbon natural gas opportunities
• Renewable energy projects

Reporting Standards

Frameworks Used: TCFD

UN Sustainable Development Goals

• UN SDG 7 (Affordable and Clean Energy)
• UN SDG 13 (Climate Action)

Initiatives such as CCUS, renewable energy projects, and methane emission reduction contribute to these goals.

Sustainable Products & Innovation

• 4CPe (raw material for low-global-warming refrigerants)

Awards & Recognition

• NET Power's 2018 ADIPEC Breakthrough Technological Project of the Year

Environmental Metrics

ESG Focus Areas

• Climate Change
• Greenhouse Gas Emissions
• Methane Emissions
• Flaring
• Energy Efficiency
• Water Stewardship
• Waste Management
• Biodiversity
• Diversity, Inclusion and Belonging
• Workforce Development
• Health, Safety and Well-being
• Community Investment
• Corporate Governance
• Risk Management
• Business Ethics
• Human Rights

Environmental Achievements

• Reduced total operated GHG emissions (Scope 1 and 2) by nearly 11.5% between 2019 and 2020.
• Reduced total flare-related volumes by more than 15% between 2019 and 2020.
• Achieved more than a 90 percent recycling rate in water recycling program in New Mexico's Permian Basin.
• Reduced annual carbon dioxide equivalent (CO2e) flaring emissions by more than 60 percent in New Mexico operations due to a new gas gathering system.

Social Achievements

• Achieved best ever safety performance in 2020 with an employee-only IIR of 0.19.
• Partnered with Water Mission, providing access to safe drinking water for approximately 1 million people.
• Invested more than $16 million in community and social investments in 2020.
• Expanded partnerships with Historically Black Colleges and Universities for internships and job opportunities.

Governance Achievements

• Established the Sustainability and Shareholder Engagement Committee to oversee ESG matters.
• Became the first U.S. upstream oil and gas company to incorporate an ESG performance metric into its credit facilities.
• Updated its HSE management system to establish an OMS that maintains a strong focus on HSE.

Climate Goals & Targets

Environmental Challenges

• Climate change and its associated risks (physical and transition risks).
• Supply chain disruptions.
• Water scarcity in certain operating areas.
• Managing waste and reducing environmental impact.

Mitigation Strategies

• Developed a Net-Zero Pathway aligned with the Paris Agreement.
• Investing in CCUS and DAC technologies.
• Implementing water recycling and reuse programs.
• Implementing waste minimization and pollution prevention plans.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Evaluating prospective business partners, contractors, suppliers, and agents to ensure compliance with Oxy’s policies.
• Including provisions related to human rights and ethical business conduct in international procurement contracts.

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events
• Flooding

Transition Risks

• Regulatory changes
• Market shifts
• Carbon pricing

Opportunities

• Development of CCUS and DAC technologies
• Growth of carbon management value chain

Reporting Standards

Frameworks Used: World Economic Forum’s Stakeholder Capitalism Metrics, Sustainability Accounting Standards Board (SASB) Standards, International Petroleum Industry Environmental Conservation Association’s (IPIECA’s) Sustainability Reporting Guidance, American Chemistry Council’s Responsible Care® initiative, Taskforce on Climate-related Financial Disclosures (TCFD)

Certifications: ISO 9000 (OxyChem)

Third-party Assurance: ERM Certification and Verification Services, Inc. (ERM CVS)

UN Sustainable Development Goals

• Goal 6 (Clean Water and Sanitation)
• Goal 7 (Affordable and Clean Energy)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 14 (Life Below Water)
• Goal 15 (Life on Land)

Oxy's initiatives support these goals through various environmental, social, and governance programs.

Sustainable Products & Innovation

• Low-carbon fuels and products from CCUS and DAC technologies
• Next-generation refrigerants (4CPe)

Awards & Recognition

• Fortune’s Most Admired Companies
• American Chemistry Council's top safety performance award (OxyChem)
• Sustainability Leadership Award from the ACC (OxyChem)
• His Majesty Sultan Qaboos for social investment (Oman)
• Al Roya Social Responsibility Forum Award (Oman)
• Grand Conceptor Award from the American Council of Engineering Companies (Copper Basin restoration project)

Environmental Metrics

ESG Focus Areas

• Health, Safety, Environment (HSE)
• Sustainability
• Climate Change
• Net-Zero Emissions
• People
• Planet
• Prosperity
• Governance

Environmental Achievements

• Achieved Zero Routine Flaring (ZRF) across U.S. oil and gas operations in 2022.
• Reduced estimated methane emissions by approximately 58% since 2019 and 40% since 2021.
• Construction progressing at STRATOS, the first commercial-scale Direct Air Capture (DAC) plant.
• Secured interests in more than 300,000 acres for planned sequestration hubs.
• Invested approximately $530 million in emerging net-zero or low-carbon technologies.

Social Achievements

• Employee safety performance better than pre-Covid levels with an OSHA injury and illness incidence rate of 0.26 (excluding Covid cases).
• Launched eight new Employee Resource Groups (ERGs) in 2022 and another in 2023.
• OxyChem received 37 Responsible Care® and Facility Safety Awards in 2023.
• More than one million people gained access to safe drinking water through OxyChem’s partnership with Water Mission.

Governance Achievements

• Board approved updates to HSE and Sustainability Principles.
• Added three new independent directors to the Board in the past two years.
• Incorporated an ESG performance metric into its credit facilities.

Climate Goals & Targets

Environmental Challenges

• Contractor injury and illness incidence rate higher than 2021 and pre-Covid years.
• Climate-related risks (physical and transition risks).

Mitigation Strategies

• Established three safety priorities for 2023 to improve contractor safety performance.
• Integrates ESG criteria into strategic planning and investment decision-making.
• Performs routine risk assessments to address emerging challenges and opportunities.
• Incorporates analyses of short-, medium-, and long-term financial risks of a lower-carbon economy.

Supply Chain Management

Responsible Procurement

• Evaluates prospective business partners, contractors, suppliers, and agents.
• International procurement contracts include provisions related to human rights and ethical business conduct.

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events
• Business disruption due to proximity to flood-prone and water-stressed areas

Transition Risks

• Regulatory changes
• Market shifts
• Carbon pricing

Opportunities

• Development of energy-efficient products
• Carbon capture, utilization, and storage (CCUS)
• Direct Air Capture (DAC)

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UN SDGs, WEF Stakeholder Capitalism Metrics, Ipieca Sustainability Reporting Guidance

Certifications: ISO 14001, ISO 50001, ISO 9000, WHC Conservation Certification®

Third-party Assurance: ERM Certification and Verification Services, Inc.

UN Sustainable Development Goals

• SDG 6 (Clean Water and Sanitation)
• SDG 9 (Industry, Innovation and Infrastructure)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)
• SDG 14 (Life Below Water)
• SDG 15 (Life on Land)

Oxy incorporates the SDGs into its sustainability strategy.

Sustainable Products & Innovation

• Net-zero oil
• Low-carbon fuels
• Decarbonized hydrogen
• Sustainable aviation fuels

Awards & Recognition

• Fortune's World's Most Admired Companies (No. 1 in Mining, Crude-Oil Production)
• 37 Responsible Care® and Facility Safety Awards from the American Chemistry Council (2023)
• Better Practice Award from the U.S. Department of Energy Better Plants® program (2022)
• Vantage Vinyl Gold rating (2023)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Inclusion and Belonging
• Health and Safety
• Community Engagement
• Water Stewardship
• Supply Chain Management
• Responsible Procurement
• Human Rights

Environmental Achievements

• Reduced Scope 1 and Scope 2 GHG emissions by ~20.4% from 2019 and ~2.6% from 2022.
• Reduced methane emissions by ~65.2% from 2019 and ~15.9% from 2022.
• Achieved a ~67% reduction in routine flaring for global oil and gas operations from our 2020 baseline. Sustained zero routine flaring in domestic operations.
• ~96% of the total water withdrawn by Oxy’s U.S. oil and gas operations came from non-fresh sources.
• OxyChem implemented numerous water usage reduction projects, resulting in a reduction of about ~1.19 million barrels of water usage.

Social Achievements

• Launched a new Talent Engagement and Employee Experience team focused on enhancing employee engagement.
• Added enhanced mental health support to employee benefits.
• Employee Total Recordable Injury Rate (TRIR) for 2023 was 0.21, a 19% improvement from 2022.
• ~23.5% of U.S. employees experienced internal job moves due to promotions and transfers.
• 48% of college hires were conversions from the intern program.
• Employee Resource Groups (ERGs) hosted more than 14 events.
• Oxy contributed >$25 million to social investment programs.
• Oxy paid ~$3.9 billion in taxes globally.

Governance Achievements

• Added three new independent directors to the Board in the past two years.
• Maintained the sustainability metric weighting for the 2023 Annual Cash Incentive (ACI) Award at 30%.

Climate Goals & Targets

Environmental Challenges

• Climate change and its impacts on operations and supply chains.
• Maintaining high safety standards across diverse operations.
• Attracting and retaining top talent in a competitive industry.
• Balancing economic growth with environmental stewardship.
• Managing risks associated with political and regulatory changes.

Mitigation Strategies

• Implementing a comprehensive Net-Zero Strategy.
• Investing in carbon capture, utilization, and storage (CCUS) and direct air capture (DAC) technologies.
• Improving safety programs and training.
• Enhancing employee benefits and engagement initiatives.
• Engaging with stakeholders to address concerns and build trust.
• Proactive risk management and mitigation strategies.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• HSE&S requirements
• Ethical business conduct expectations
• Human rights considerations

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of low-carbon technologies and products
• Carbon capture and storage projects

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, TNFD, WEF Stakeholder Capitalism Metrics, Ipieca Sustainability Reporting Guidance

Certifications: ISO 14001, ISO 45001, ISO 50001, ISO 9001, +Vantage Vinyl™ Gold

Third-party Assurance: ERM Certification & Verification Services, Inc. (ERM CVS)

UN Sustainable Development Goals

• SDG 3
• SDG 6
• SDG 7
• SDG 8
• SDG 9
• SDG 12
• SDG 13
• SDG 17

Initiatives contribute to these goals through various programs and investments.

Sustainable Products & Innovation

• Net-Zero Oil
• Low-carbon fuels and chemicals

Awards & Recognition

• Fortune World’s Most Admired Companies
• CDP Leadership Level for climate disclosure
• OGMP 2.0 Gold Standard pathway
• American Chemistry Council Sustainability Leadership Award