Principles of Governance

CORPORATE GOVERNANCE  

Our senior management team and Board of Directors are committed to high standards of ethical conduct, institutional integrity and effective corporate governance throughout 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. 

Explore Corporate Governance at Oxy

SUSTAINABILITY STRATEGY

Our governance structure supports our drive to create value for our shareholders and benefit our communities and society. Our Board holds our leadership accountable with criteria that reflect our company’s mission, vision and core values; our commitment to ethical behavior under our Code of Business Conduct; and our attention to assessing risk and internal controls. We implement responsible policies and robust management systems, including our Operating Management System (OMS), to foster and reinforce business practices that are consistently sound, highly principled and transparent. 

Oxy is progressing its vision as an innovative and sustainable energy and materials 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 Operating 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 UN Sustainable Development Goals.

We’re implementing the Principles through our Operating 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.

Enterprise Risk Management 

Oxy’s vision to lead the industry and reach for the impossible, while delivering the essential products the world needs, takes strong risk management. ESG performance is integral to Oxy’s overall risk management and strategic planning processes. Our ERM program establishes a framework for how we identify, assess and manage the risks that may affect our ability to implement our business strategy. 

Oxy’s ERM program is central to strategic decision-making and capital planning and promotes safe, reliable and sustainable operations. Oxy incorporates analyses of short- (1–4 years), medium- (4–12 years) and long-term (beyond 12 years) financial risks of a lower-carbon economy to assess the resilience of our assets and capital investments.  

Cybersecurity 

Oxy is committed to safeguarding our digital and physical assets to promote the integrity, confidentiality and availability of our systems and data. Our comprehensive cybersecurity framework incorporates a variety of mechanisms, controls, technologies and policies, all thoughtfully designed to prevent or mitigate the risk of data loss, theft, misuse or other security incidents. 

Our approach to cybersecurity is multi-faceted, involving dedicated teams for both business network and Industrial Control Systems (ICS) security, under the guidance of our CIO and other key stakeholders. This initiative is part of our broader ERM program, aligned with leading industry practices such as the National Institute of Standards and Technology (NIST) framework. We leverage a balanced mix of people, processes and technology to identify and swiftly respond to potential cybersecurity threats. 

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, People, Planet, Prosperity) represent key areas of strategic focus for Oxy, and guide our reporting as we continue to implement and enhance sustainable business practices and disclose performance.

Human Rights 

Oxy’s commitment to respecting and upholding human rights is set forth in our Human Rights Policy. Our formal policy includes Oxy’s commitment to promoting rights and freedoms as universally recognized in international and national law in our business activities. It also addresses our expectations for employees, contractors and suppliers, security personnel and other key stakeholders regarding awareness, due diligence and risk management practices to safeguard human rights in our operations. All employees must acknowledge and commit to following the policy as a condition of employment. Oxy is attentive to concerns raised by stakeholders, including the needs of the communities in which we operate, and is committed to working with stakeholders to support human rights within the spheres of Oxy’s activity and influence. 

Oxy works with partners, suppliers and contractors who share our commitment to ethical business practices. We routinely evaluate suppliers and contractors to assess whether they meet our standards of ethics and HSE&S, as well as human rights. As part of the Compliance Program, we require our suppliers and contractors to comply with applicable policies, including our Code of Business Conduct, Supplier Code of Conduct, and Human Rights Policy. 

Oxy strongly encourages employees and contractors to report suspected violations of company policies, including the Human Rights Policy. We provide several avenues for such reporting, including Oxy’s Integrity Helpline which anyone may use to anonymously report suspected policy violations for investigation by Oxy’s Compliance team. 

Read more in our Human Rights Policy Statement.