2/16/2016 Page 1 How Chevron Phillips Chemical Company is Building a Sustainable Tomorrow Building a Sustainable Tomorrow Rick Wagner SUSTAINABILITY MANAGER HOW CHEVRON PHILLIPS CHEMICAL COMPANY IS
2/16/2016 Page 1 How Chevron Phillips Chemical Company is Building a Sustainable Tomorrow
Building a Sustainable Tomorrow Rick Wagner SUSTAINABILITY MANAGER
HOW CHEVRON PHILLIPS CHEMICAL COMPANY IS
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Company Founded in 2000
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About Us Manufacturer of petrochemicals that are essential to manufacturing over 70,000 consumer and industrial products Currently $12.3 billion in assets and more than $14.1 billion in annual revenues Trusted supplier to customers in 140 countries A highly educated and diverse workforce of approximately 5,000 employees working on four continents across the globe
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Manufacturing Locations
Saudi Arabia Qatar
Singapore
China South Korea
Belgium
Colombia
United States
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Our Products
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Major Company Brands
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Divisions & Affiliates
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Business Drivers for Sustainability Investors and Owners Social License to Operate Customers Employees
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Resource Realities • Growth of people with financial
ability to buy more than basic needs are increasing more rapidly
• Minerals, water and energy are becoming more difficult to acquire
• Linkages of global marketplace cause local events to have global consequences
• Transparency of risk is key to maintain stakeholder acceptance of license to operate
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Sustainability as a Performance Advantage
Low vs
High
Low Sustainability Focus – Control group with little or no Sustainability policies in 1993
High Sustainability Focus – Group with Sustainability policies
dating back to early 1990’s
VW vs
EW
Value Weighted – Return based upon share price
Equity Weighted – Return based upon net income
Source: “The impact of Corporate Sustainability on Organizational Processes and Performance” Robert G. Eccles, Ioannis Ioannu, George Serafeim, May 2012. Working Papers, Harvard Business School
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“As a company, we define sustainable as keeping the health and safety of our workforce paramount in our daily operations, being a responsible steward of the environment, creating the chemical building blocks for products that will exceed customer expectations, and acting responsibly and ethically across our global business dealings.” – Peter Cella, CEO
Chevron Phillips Chemical Company
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Business Strategy for Sustainable Growth Vision – To be the premier chemical company achieving superior financial results while protecting people and the environment.
Strategy – Grow profitably with sustainable competitive advantage and operational excellence to continuously improve the value created for our shareholders, customers, employees and communities.
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Programs and Practices Adoption of Life Saving Rules to compliment an Operational Discipline focus
Asset Integrity and Reliability Organization
Engaging our employees in creating a great place to work
Diversity and Inclusion initiatives
Began construction of our US Gulf Coast Petrochemicals Project
Completed startup of the worlds largest on-purpose 1-Hexene plant
Engaging with industry associations to address regional and global issues
Communicating with stakeholders to assess sustainability performance
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Performance Examples
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Communication of Our Performance External Website Annual Sustainability Report Stakeholder Engagement Industry Engagement
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Connect with Us Online - @chevronphillips
Building a�Sustainable �TomorrowCompany Founded in 2000About UsSlide Number 4Our ProductsMajor Company BrandsDivisions & AffiliatesBusiness Drivers for SustainabilityResource RealitiesSustainability as a Performance AdvantageChevron Phillips Chemical CompanyBusiness Strategy for Sustainable GrowthPrograms and PracticesPerformance ExamplesCommunication of Our PerformanceConnect with Us Online - @chevronphillips