The Voluntary Principles on Security and Human Rights 2016 Report to the Plenary March 2017 Ottawa, Canada

Transcription

1 The Voluntary Principles on Security and Human Rights 2016 Report to the Plenary March 2017 Ottawa, Canada Chevron Corporation s 1 commitment to human rights is embedded in The Chevron Way, incorporated into our management systems and demonstrated through our participation in international human rights initiatives such as the Voluntary Principles on Security and Human Rights Initiative (hereafter VPs Initiative ). In this report, we will describe a number of elements of how we manage human rights in our business, including our on-the-ground leadership in the VPs Initiative based on the Voluntary Principles on Security and Human Rights (hereafter Voluntary Principles ). The report provides an update of Chevron s global activities in 2016, in alignment with the VPs Initiative reporting guidelines as well as the Corporate Pillar Verification Framework. This report has a particular focus on Angola, Australia and Argentina. In addition to Angola, Chevron selected Australia and Argentina, two of the VPs Initiative s newest participants, to highlight their leadership in making security and human rights a high-level priority. It is our hope that more countries join the initiative to formally demonstrate the importance of the VPs in protecting human rights in their countries. I. Chevron s Commitment to the Voluntary Principles Our Human Rights Policy, grounded in The Chevron Way 2, articulates our values and informs how we conduct our business. The Policy explains our relationship to the Voluntary Principles: We protect personnel and assets and provide a secure environment in which business operations may be successfully conducted. Our guidelines and management processes on security in our areas of operations are consistent with the Voluntary Principles on Security and Human Rights, which covers: Interaction with private security providers, including (i) due diligence of potential security providers; (ii) monitoring of equipment and facilities to prevent misuse; (iii) engagement with communities on security; (iv) facilitating education and training on the Principles. Interaction with public security providers, including (i) security arrangements; (ii) deployment and conduct; (iii) consultation and advice; and (iv) responses to human rights-related issues. Conducting security and human rights-related assessments in areas of operations. Reporting security and human rights-related incidents involving public or private security personnel to Company management, and to appropriate Government authorities in cases involving public security personnel. 3 1 As used in this report, the term Chevron and such terms as the company, their, our, its, and we may refer to one or more of Chevron s consolidated subsidiaries or affiliates or to all of them taken as a whole. Similarly, the terms business unit and business units may refer to one or more of Chevron s consolidated subsidiaries or affiliates. All these terms are used for convenience only and are not intended as a precise description of any of the separate entities, each of which manages its own affairs Chevron Human Rights Policy (2009)

2 Page 2 II. Policies, Procedures, and Related Activities A. Supporting Policies, Processes, and/or Guidelines Chevron s Operational Excellence Management System (OEMS) is a comprehensive means of systematic management of process safety, personal safety and health, the environment, reliability and efficiency. Through disciplined application of OEMS, we identify risks and integrate operational excellence (OE) processes, standards, procedures and behaviors into our daily operations. The application of OEMS is linked to business planning and begins with defining a vision of success and setting objectives. Gaps between current performance and these objectives are uncovered during an annual assessment process. We develop plans to close the gaps, implement the plans and review plan performance as part of our commitment to continual improvement. Within the OEMS we have 13 core elements. The first is the Security of Personnel and Assets. The processes that support this element provide a comprehensive framework to identify and mitigate security-related risk. They link security and human rights, and establish guidelines and safeguards to help Chevron conduct security operations in compliance with our Human Rights Policy and applicable laws. Greater detail on guidance tools Chevron has developed to assist business units in implementing the Voluntary Principles are below. B. Procedures to Conduct Risk Assessments A key aspect of the Security of Personnel and Assets Process is the Security Risk Assessment Program (SRAP), which provides Corporate and business unit-level assessment tools to enable the identification and mitigation of potential risk. The process requires all facilities to annually conduct a baseline security assessment. This assessment includes questions on Voluntary Principles implementation around the frequency of awareness training conducted for security guards, security services contract language and management of security equipment. At the business unit level, SRAP includes an assessment tool to help the business unit identify, assess and manage potential security and human rights-related issues relevant to the security of personnel and assets. The assessment includes matters to consider related to community grievances, violence and conflict, security forces and equipment transfer, among others. Assessments are also conducted prior to the commencement of a major new project or entry into sensitive operating environments. C. Procedures to Report Incidents Chevron procedures advise practitioners to report security and human rights-related incidents to Chevron s Corporate Global Security group and other human rights concerns to the Public Policy and Corporate Responsibility group. For both internal and external stakeholders, Chevron business lines offer various ways to manage reporting and grievances with the company. Many business units retain operational level internal and external grievance management systems. Globally, Chevron also offers a hotline available 24-hours-per-day for reporting activities that may involve violations of law, including possible criminal conduct, violations of Chevron s Business Conduct and Ethics Code or company policies. Chevron encourages both employees and contractors to utilize the hotline to report complaints via phone, internet or . If Chevron receives any reports or allegations that public security personnel have been involved in human rights-related abuses or incidents, the company investigates and delivers the information to the host government authorities as appropriate.

3 Page 3 D. Procedures for Contractual Relations with Private Security Chevron s standard security services contract incorporates clauses that reflect our commitment to the Voluntary Principles. In particular, our contractual terms set forth expectations regarding training on the Voluntary Principles, background screening of contract personnel and investigation of allegations of security and human rights-related incidents. Our contracts also reserve the right for Chevron to audit contracting companies to determine if they adhere to these and other requirements. E. Procedures to Address Incidents Chevron conducts an internal investigation in the event that an allegation regarding a security or human rights-related incident is made. Our procedures dictate that findings and recommendations be reported to relevant managers, and that corrective actions are taken where appropriate. F. Procedures to Review Business Units The Security Management Review (SMR) is a process that Chevron uses to review and assess security practices implementation. The Voluntary Principles and human rights are one of several issues reviewed through this process. The process includes a checklist and interviews with security staff and management. Findings are reported to the business unit managing director and leadership team. An action plan is developed for any potential corrective measures. In 2016, multiple SMRs were conducted. Each included a detailed assessment of the business security and human rights programs. No issues were identified. G. Procedures to Record and Analyze Global Activity Chevron maintains a detailed data collection and analysis procedure to gather, collate and review global progress on security issues related to the Voluntary Principles. This annual procedure enables Chevron to assess country and regional progress and allows for technical support and other resources to be directed and focused where needed. H. Examples to Promote Voluntary Principles Internally Each year, all employees must read, acknowledge, and review Chevron s Business Conduct and Ethics Code, which incorporates our Corporate Human Rights Policy. Chevron makes accessible for practitioners, via its intranet site, the Guidelines on the Voluntary Principles on Security and Human Rights, and the Voluntary Principles training tool. A corporate directive requires business units to implement the Guidelines. Other examples of Chevron s ongoing promotion of the Voluntary Principles include: To mark Human Rights Day 2016, Chevron s vice president responsible for the Human Rights Policy, delivered a global to all employees to reinforce the company s expectations including adherence to the Voluntary Principles. In many operating areas, a statement on the Voluntary Principles from the managing director, accompanied by an awareness presentation, is delivered to select business unit personnel. Managers and security advisors attend biennial workshops and business unit security leadership attend annual regional workshops where Voluntary Principles awareness is reinforced. Chevron Global Security discusses the Voluntary Principles and implementation issues during their visits with business unit management and security teams. Global Security leadership communicates regularly with security functions throughout the year to ensure ongoing awareness of our corporate processes on security and human rights.

4 Page 4 Chevron facilitates continuous learning on these issues. Chevron Global Security maintains an intranet site that is open and accessible to all Chevron employees, contains relevant company policies, extensive Voluntary Principles training materials and links to key international bodies (such as the United Nations) with additional information on human rights. In 2016, Chevron updated our computer-based training focused on human rights, which includes a section on the Voluntary Principles. The training is required for select employees and contractors whose job responsibilities make them most likely to be exposed to security and human rights-related issues. More than 12,000 Chevron employees complete the training with each training cycle, which occurs over two years. Specific to 2016, Chevron subject matter experts conducted training sessions and awareness briefings with private security providers and public security stakeholders in multiple locations across our operations including: Twelve training sessions in four locations were held across Nigeria and included private security contractors, members of public security (Army, Navy, Police) and Chevron employees; Dialog and training sessions with private security contractors and the government in Erbil, Iraq; Several trainings for local security providers and employees across Kazakhstan in both Kazakh and Russian languages; and Training for private security contractors across three locations in Brazil. I. Examples to Promote the Voluntary Principles Externally Chevron has participated in each Voluntary Principles Plenary since 2001 and has been actively involved in supporting the VPs Initiative progress. In 2016, Chevron continued to serve as a member of the Outreach and Implementation Working Groups. Chevron has also been active in promoting the implementation of good security practices throughout business and the industry. In 2016, Chevron partnered with the Center for Strategic and International Studies Human Rights Initiative and the Project for U.S. Leadership in Development to hold a series of interactive roundtables under the theme of Aligning Partnerships for Security: A Human Rights Based Approach to Security and Economic Cooperation. The initiative culminated in a 2017 event panel featuring government, civil society and business to launch the related report which proposed concrete avenues for cooperation on security and human rights. In 2016, Chevron attended the United States Department of Defense Southern Command Regional Human Rights Initiative Conference on Human Rights in Doral, Florida. The event was an opportunity to share information on Voluntary Principles best practices and partnerships with military, government and civil society leaders from Central and South America and the Caribbean. To mark Human Rights Day, Chevron s vice president responsible for the Human Rights Policy and our chief procurement officer partnered to deliver a message to Chevron s key suppliers and contractors. The letter emphasized Chevron s expectations for companies doing business with Chevron, including alignment with the Voluntary Principles. Chevron also furthers the Voluntary Principles through leadership in business associations. IPIECA, the global oil and gas industry association for environmental and social issues, has three groups which routinely discuss security and human rights: the Social Responsibility Working Group, the Human Rights Task Force and the Responsible Security Task Force (RSTF). These groups and events help to communicate key security and human rights information with companies that are not currently members of the VPs Initiative. The Voluntary Principles are also discussed within other groups in which Chevron actively participates, including the Global Business Initiative for Human Rights and the Business for Social Responsibility Human Rights Working Group.

5 Page 5 III. Country-level Implementation In 2016, business units continued to implement the Voluntary Principles in accordance with local laws and in cooperation with local authorities. For this report, an update is provided for Angola, Australia and Argentina. Angola A. Sample Overview of Country Operations 4 Chevron has been active in Angola since the 1930s and is a major partner in the economy and community. Through our subsidiary Cabinda Gulf Oil Company Limited, we ranked among the country s top petroleum producers in 2015 with net production averaging 110,000 barrels of liquids and 55 million cubic feet of natural gas per day. Chevron has interest in two concessions: Block 0, off the coast of Cabinda Province, and Block 14, in deep water. We also have interest in Angola LNG Limited (a joint venture in Soyo), and in the Congo River Canyon Crossing Pipeline which transports gas from Blocks 0 and 14 to the LNG plant. Chevron operates and holds a 31.3 percent interest in the Lianzi Unitization Zone, which is an area shared equally by Angola and Republic of Congo. Chevron works with Sonangol, business partners, the government of Angola and community members to identify needs. We then invest in programs that create measurable and enduring value for both the community and our business. We make strategic social investments in three areas: health, education and economic development. Since 1988, Chevron and our partners have invested more than $215 million in programs that support the health, education, economic, environmental and social needs of millions of Angolans. B. Security Engagements with Stakeholders Chevron s leadership in Angola reaffirms our commitment to implementing the Voluntary Principles in its annual Security Management and Stakeholder Engagement Plans. These plans are communicated to employees, contractors and other partners. Security management and practitioners apply the tenets of the Voluntary Principles to help manage security and human rights risk. The Voluntary Principles also guide Chevron s local engagement and collaboration with government and private security forces. For example, Chevron is an active member of the U.S. Embassy Overseas Security Advisory Council (OSAC) in Angola. C. Selection of Private Contractors and Formulation of Contractual Agreements; Arrangement with Public Security Forces Chevron maintains several private security contracts which incorporate clauses related to the Voluntary Principles. These contracts stipulate that the providers operate according to the intent of the Voluntary Principles. In 2016, all contracts and guard force site procedures and post instructions were reviewed and evaluated. 4 More information:

6 Page 6 D. Examples of Outreach, Education, or Training Chevron security employees and direct contractors completed the required computer-based training on Chevron s Human Rights Policy and related procedures and tools to help manage operations in the security and human rights space. Training for private security personnel and providers focuses on the Voluntary Principles. The training includes the following modules: Rules of engagement and use of force; risk assessment; coordination with government authorities and law enforcement and the Chevron Human Rights Policy. Chevron Angola holds bi-weekly security consultations and meetings in Luanda and Cabinda with the Angolan Security Authorities, which include the Police, Military, Marine and Port Authorities. In addition, weekly internal security management meetings are held. All these meetings are conducted under the guidance of the Voluntary Principles. During the past year regular training sessions were held with members of the contracted guard force and Chevron Angola employees with the focus on Voluntary Principles and best practices. Security officials received in-house training with regards to the company policies and procedures governing their conduct in their day-to-day activities. E. Procedure to Review Progress To reinforce a holistic approach to risk management, drills incorporating the security function are conducted throughout the year at the operational level and help define any potential progress that might be needed. Further, several reviews were conducted in Angola during the reporting year, as part of the Security Risk Assessment Program. No human rights violations were identified in reviews or reported during the 2016 period. Argentina A. Sample Overview of Operations 5 Chevron Argentina S.R.L. (Chevron Argentina) is the sixth-largest producer of oil in the country, with concessions in the Neuquén Basin. Another Chevron subsidiary participates in the Loma Campana and Narambuena Unconventional Fields in the Vaca Muerta formation, which are operated by YPF. Separately, a Chevron Shared Services Center operates in Buenos Aires, providing information technology and accounting support services for affiliates in Latin America, the United Kingdom and the United States. Chevron Argentina supports social investment programs that promote education, health and economic development in the communities where the company operates. The company supports health, education, economic development and environmental programs. B. Security Engagement with Stakeholders As per the OEMS system, Chevron Argentina manages stakeholder engagement plans that are updated regularly. Security issues, human rights topics and the Voluntary Principles are appropriately represented in these plans. 5 More information:

7 Page 7 C. Selection of Private Contractors and Formulation of Contractual Agreements; Arrangement with Public Security Forces Chevron Argentina utilizes private contractors for securing operations and our offices. All contracts include appropriate Voluntary Principles and human rights language. D. Examples of Outreach, Education, or Training In 2016, two Chevron Argentina security contractors personnel received Voluntary Principles training through their security supervisors and from Universidad Abierta Interamericana. The training covered human rights, relevant regional legal human rights conventions that apply to Argentina, aspects of the Argentinian constitution, best practices in conflict resolution and the Voluntary Principles themselves. E. Procedure to Review Progress All Chevron Argentina s security plans and procedures were reviewed and validated in All include appropriate language aimed at addressing security and human rights considerations. No human rights violations were identified during the reviews or otherwise reported in Australia A. Sample Overview of Operations 6 In Australia, Chevron operates through a wholly owned subsidiary, Chevron Australia Pty Ltd, the largest holder of natural gas resources in the country. Chevron Australia has produced oil at Barrow Island for more than 50 years, operates the Gorgon and Wheatstone LNG projects, has a nonoperated interest in the North West Shelf Venture and operates offshore blocks EPP44 and EPP45. Net daily production in Australia in 2015 averaged 21,000 barrels of liquids and 439 million cubic feet of natural gas. Chevron Australia s social investment targets local communities. This includes the West Pilbara region in Western Australia, where the Gorgon and Wheatstone projects are located, and the Perth metropolitan area, where Chevron Australia Pty Ltd is headquartered. Chevron Australia focuses on benefiting communities in five areas: economic development, health, education, sense of community and environment. B. Security Engagement with Stakeholders As part of its annual OEMS responsibilities, Chevron Australia includes the Voluntary Principles in its annual Security Management and Stakeholder Engagement Plans, which are updated annually for the three-year business plan period. In as such, Chevron Australia discusses responsible security with key government contacts, as well as contractors and the community. Given the rarity of security and human rights concerns in our operations, Voluntary Principles have not historically been an area of focus for our stakeholders. Chevron Australia also actively participates in various peer stakeholder groups and forums which help it maintain and progress relationships with key security and human rights colleagues. Chevron Australia participates in the National Oil and Gas Security Forum, the U.S. Embassy s Overseas Security Advisory Council, the Australian Government s Trusted Information Sharing Network for Critical Infrastructure Resilience and the Pilbara Critical Infrastructure forum where the Voluntary Principles are discussed. 6 More information:

8 Page 8 C. Selection of Private Contractors and Formulation of Contractual Agreements; Arrangement with Public Security Forces Chevron Australia utilizes private contractors for securing operations and its offices. Further, assets under construction are secured via private companies employed by the contractor responsible for building the major capital project. All contracts include appropriate Voluntary Principles and human rights language. Chevron Australia maintains a Memorandum of Understanding (MOU) with the Western Australia Police that provides a framework for the police to fulfil their duties in support of operations on Barrow Island. The MOU promotes collaboration, cooperation and communication to facilitate safe living and working conditions for everyone on the island. It further defines roles and responsibilities and cost recovery arrangements. D. Examples of Outreach, Education, or Training Chevron Australia coordinates closely with its main contractor, Bechtel (Western Australia) Pty Ltd, a corporation that is aligned with the Voluntary Principles and is a participating member of the International Code of Conduct Association. Bechtel ensures security subcontractor compliance with the Voluntary Principles through contractual obligations, a Code of Conduct, work rules, an Employee Relations Plan, Local Laws, and Compliance tools. The security subcontractor is actively monitored by Bechtel security to ensure compliance on a daily basis. The need for education and training around security and human rights is low in Australia due to the well-performing and long-running government policy in place to manage these types of issues. For instance, all private security activities within Western Australia are governed by the Security and Related Activities (Control) Act 1996 and the Security and Related Activities (Control) Regulations Further, the Western Australia Police Licensing Services (Security) governs the security industry and is responsible for: issuing security licenses and registrations; renewal of security licenses and registrations and monitoring of security licenses and registration holders. The Licensing Services (Security) aim is to provide the community of Western Australia with confidence in a professional security industry where competency (training), integrity and accountability are provided and maintained at a high standard. Currently all license holders on application or on renewal are required to sign a code of conduct (although its enforcement is not dependent of the signing). Section 94 of the Security and Related Activities (Control) Act 1996 is the head power for the Code of Conduct and giving the authority of any breach of the Code of Conduct to be a cause of disciplinary proceedings against a license holder. Regulation 54A makes the provision for the preparation and enforcement of the Code of Conduct. E. Procedure to Review Progress All security plans and procedures at the business unit and facility levels were reviewed and revalidated in All of these include appropriate language aimed at addressing security and human rights considerations. No human rights violations were identified during the reviews or otherwise reported in 2016.

9 Page 9 IV. Next Steps, Lessons and Issues Chevron will continue to implement the Voluntary Principles lessons learned around training and guidance tools described above with leadership teams, security personnel, and other relevant personnel within different business units. Chevron will continue to support the activities of the Voluntary Principles Initiative and Association, including several working groups. To promote the Voluntary Principles externally, Chevron will continue to co-chair both the IPIECA Social Responsibility Working Group and Human Rights Task Force and participate in the Responsible Security Task Force. Further, Chevron will continue to incorporate the Voluntary Principles as a best practice into its other human rights dialogue and business memberships.