Occidental Petroleum : Climate Change 2022

Occidental Petroleum Corporation - Climate Change 2022

C0. Introduction

C0.1

(C0.1) Give a general description and introduction to your organization.

Oxy is an international energy company with assets primarily in the United States, the Middle East and North Africa. We are one of the largest oil producers in the U.S., including a leading producer in the Permian and Denver-Julesburg (DJ) basins, and offshore Gulf of Mexico. Our midstream and marketing segment provides flow assurance and maximizes the value of our oil and gas. Our chemical subsidiary OxyChem manufactures the building blocks for life-enhancing products. Our Oxy Low Carbon Ventures (OLCV) subsidiary is advancing leading-edge technologies and business solutions that economically grow our business while reducing emissions. We are committed to using our global leadership in carbon management to advance a lower-carbon world.

As the first major U.S. oil producer to establish net-zero greenhouse gas (GHG) emissions goals for Scopes 1, 2 and 3, including the global use of our products, we are proud of the bold steps we have taken toward sustainability leadership in the energy industry. Oxy's overarching climate goals are to achieve net-zero emissions in our operations and energy use before 2040, with an ambition to do so before 2035, and net-zero emissions from our total carbon inventory, including the use of products, with an ambition to do so before 2050. Oxy is one of the three oil and gas companies whose long-term targets were identified by the Transition Pathway Initiative as aligned with the 1.5 C degree pathway in their November 2021 report. Oxy was also recognized in an article in Science in October 2021 as the only oil and gas company that plans to reduce its GHG intensity below the 1.5 C benchmark by 2050.

Oxy was the first U.S. oil and gas producer to endorse international commitments including, the World Bank's "Zero Routine Flaring by 2030" initiative, the World Economic Forum's Stakeholder Capitalism Metrics and the Energy Transition Principles, and the first major producer in the Permian Basin to join the Oil and Gas Methane Partnership

2.0 Oxy's participation in these initiative further underscores our commitment to promote policies that will successfully accelerate a lower-carbon economy while meeting the needs and aspirations of a growing, energy-dependent global population.

Oxy has set the following goals, among others, to achieve net zero across our total emissions inventory in accordance with the Paris Agreement, including:

• Reduce our combined Scope 1 and Scope 2 CO2e emissions from our worldwide operated assets by at least 3.68 million metric tons per year by 2024, compared to our 2021 emissions. This target, which reflects approximately 13% of our 2019 emissions, aligns with our sustainability-linked credit facility metrics, our existing 2025 carbon intensity target and a trajectory to our 2040 net-zero goal;
• Elimination of routine flaring of natural gas by 2030;
• Facilitate 25 million metric tons per year of geologic storage or utilization of captured CO2 in our value chain by 2032, or other means of recognized climate mitigation technologically feasible in that time period. This target aligns with a trajectory to our longer-term goals, and reflects our aim to help aviation, maritime and other hard-to- decarbonize industries;
• Net-zerooperational and energy use emissions (Scope 1 and 2) before 2040, with the ambition to accomplish before 2035;
• An ambition to achieve net-zero emissions across our complete inventory, including product use (Scopes 1, 2 and 3) with an ambition to do so before 2050; and,
• Capture and remove global CO2 emissions beyond our Scope 1, 2 and 3 emissions inventory.

Oxy continually evaluates ways that we can integrate sustainability throughout the company, improve our sustainability programs and performance and transparently share our progress with stakeholders.

C0.2

(C0.2) State the start and end date of the year for which you are reporting data.

	Start date	End date	Indicate if you are providing emissions data for past reporting	Select the number of past reporting years you will be providing emissions data
			years	for
Reporting	January 1	December 31	Yes	2 years
year	2021	2021

C0.3

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(C0.3) Select the countries/areas in which you operate.

Bolivia (Plurinational State of)

Canada

Chile

Oman

United Arab Emirates

United States of America

C0.4

(C0.4) Select the currency used for all financial information disclosed throughout your response.

USD

C0.5

(C0.5) Select the option that describes the reporting boundary for which climate-related impacts on your business are being reported. Note that this option should align with your chosen approach for consolidating your GHG inventory.

Operational control

C-CH0.7

(C-CH0.7) Which part of the chemicals value chain does your organization operate in?

Row 1

Bulk organic chemicals

Bulk inorganic chemicals

Chlorine and Sodium hydroxide

Other chemicals

Other, please specify (vinyl chloride monomer (VCM), ethylene dichloride (EDC), poly vinyl chloride (PVC) and Potassium hydroxide)

C-OG0.7

(C-OG0.7) Which part of the oil and gas value chain and other areas does your organization operate in?

Row 1

Oil and gas value chain

Upstream

Midstream

Chemicals

Other divisions

Carbon capture and storage/utilization

C0.8

(C0.8) Does your organization have an ISIN code or another unique identifier (e.g., Ticker, CUSIP, etc.)?

Indicate whether you are able to provide a unique identifier for your organization	Provide your unique identifier
Yes, an ISIN code	US6745991058

C1. Governance

C1.1

(C1.1) Is there board-level oversight of climate-related issues within your organization? Yes

C1.1a

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(C1.1a) Identify the position(s) (do not include any names) of the individual(s) on the board with responsibility for climate-related issues.

Position of	Please explain
individual(s)
Board-level	Oxy's management and Board of Directors (Board) recognize the importance of environmental, social and governance (ESG) matters to shareholders and other stakeholders and that ESG
committee	performance is essential both to sustain operational excellence and to develop new business opportunities. As part of Oxy's governance and risk management processes, senior management
	regularly reports to the Board on environmental and sustainability matters, including climate-related risks and opportunities. Accordingly, with the Board's oversight, Oxy has taken multiple steps to
	enhance external disclosures and practices on climate, human capital and other ESG areas. At the Board level, the Sustainability and Shareholder Engagement Committee reviews and oversees
	sustainability and social responsibility programs, policies and practices. It reviews and monitors climate-related public policy trends and related regulatory matters and also oversees Oxy's external
	reporting on ESG and sustainability matters, including climate-related risks and opportunities. The Environmental, Health and Safety Committee reviews and oversees Oxy's environmental, health
	and safety programs, policies and practices, including compliance with applicable laws and regulations and initiatives to manage and reduce our environmental footprint. Both the Sustainability and
	Shareholder Engagement Committee and the Environmental, Health and Safety Committee report to the full Board of Directors.
Chief	Oxy's President and Chief Executive Officer (CEO), also a Board member, and the full Board, are committed to ensuring that Oxy's businesses advance our net-zero goals in alignment with the Paris
Executive	Climate Agreement, and that respect the environment, operate safely, and uphold the highest standards of ethical business practices. Oxy's CEO and the Board established Oxy's Paris-aligned net-
Officer	zero climate strategy and key targets and milestones. The CEO and her leadership team regularly report to the Board on climate and sustainability matters, including Oxy's progress on our targets
(CEO)	and milestones, and the company reports to external stakeholders at least annually on the implementation of our net-zero strategy.

C1.1b

(C1.1b) Provide further details on the board's oversight of climate-related issues.

Frequency with	Governance	Scope of	Please explain
which climate-	mechanisms	board-
related issues	into which	level
are a scheduled	climate-	oversight
agenda item	related issues
	are integrated
Other, please	Reviewing and	<>	Oxy's Board of Directors and its committees collaborate closely together to implement and promote effective oversight of Oxy's climate-related risks and strategy
specify	guiding	Applicabl	through periodic reports and communications with management and other employees. The Board and Board-level Committees assess and integrate climate risk-
(Scheduled,	strategy	e>	related risks and opportunities into Oxy's business strategy which helps inform our active shareholder engagement. Our Board prioritizes the consideration of our
quarterly or five	Reviewing and		emissions and a lower-carbon economy in our strategic planning. The Board addresses climate-related risk factors and is committed to continual evaluation of the
times per year)	guiding major		impact of climate-related risk and opportunities on our business. Oxy's Board uses engagement with shareholders and stakeholders to have meaningful dialogue on
	plans of action		ESG matters. During engagements in 2021, we discussed climate matters with a majority of the shareholders participating; and we regularly engage with
	Reviewing and		stakeholders, such as Climate Action 100+, an investor-led initiative that includes many of our largest shareholders, on our net-zero strategy, sustainability practices
	guiding risk		and reporting and other climate-related matters. These conversations have led to a better understanding of shareholder and stakeholder interests and helped shape
	management		Oxy's climate-related disclosure and our GHG emissions reductions and net-zero targets. As a result of our engagements, we published the company's climate
	policies		policy positions and more information on our climate advocacy and engagement, including alignment of Oxy's climate policy positions with those of our trade
	Reviewing and		associations and other organizations. The Sustainability and Shareholder Engagement Committee reviews and oversees Oxy's external reporting on ESG matters,
	guiding annual		including climate-related risks and opportunities as part of our risk management processes. The Audit Committee oversees our Enterprise Risk Management (ERM)
	budgets		process, which involves a cross-functional ERM team that reports to our ERM Council, a group of senior executives collectively responsible for policies and
	Setting		procedures involved in managing and reporting enterprise risks, including climate-related risk. The Board's Executive Compensation Committee also influences
	performance		management priorities by establishing the parameters and goals that determine executive compensation. In 2021, given Oxy's commitment to advance climate
	objectives		solutions and the importance of our net-zero goals and the energy transition to shareholders, the Executive Compensation Committee increased the sustainability
	Monitoring		weighting to 30% of the company performance portion of the annual cash incentive (ACI) award for 2021, including targets for low-carbon ventures and emissions
	implementation		reduction projects (Scope 3) and operational emissions reduction efforts (Scope 1 and 2) to advance Oxy's net-zero strategy. Given the shareholder feedback we
	and		received, the Compensation Committee determined to maintain the sustainability metrics and the 30% weighting for the 2022 ACI award.
	performance of
	objectives
	Overseeing
	major capital
	expenditures,
	acquisitions
	and
	divestitures
	Monitoring and
	overseeing
	progress
	against goals
	and targets for
	addressing
	climate-related
	issues

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Frequency with	Governance	Scope of	Please explain
which climate-	mechanisms	board-
related issues	into which	level
are a scheduled	climate-	oversight
agenda item	related issues
	are integrated
Other, please	Reviewing and	<>	Oxy has reported GHG and other air emissions publicly for over 15 years. Oxy articulates our governance and oversight of climate-related risks and opportunities in
specify (Climate	guiding	Applicabl	its climate reports. These reports summarize our governance and management approach using the four-element framework recommended by the Task Force on
risk and	strategy	e>	Climate-related Financial Disclosures (TCFD), which covers governance, risk, strategy and metrics and targets. Oxy's latest Climate Report describes our pathway to
opportunities, and	Reviewing and		achieve net-zero GHG emissions (Scopes 1, 2 and 3), and how we incorporate climate-related risks and opportunities into our strategy, risk management and
report	guiding major		governance processes, including the governance role and oversight of the Board.
development	plans of action
aligned with TCFD	Reviewing and
recommendations)	guiding risk
	management
	policies
	Reviewing and
	guiding annual
	budgets
	Setting
	performance
	objectives
	Monitoring
	implementation
	and
	performance of
	objectives
	Overseeing
	major capital
	expenditures,
	acquisitions
	and
	divestitures
	Monitoring and
	overseeing
	progress
	against goals
	and targets for
	addressing
	climate-related
	issues

C1.1d

(C1.1d) Does your organization have at least one board member with competence on climate-related issues?

	Board	Criteria used to assess competence of board member(s) on climate-related issues	Primary	Explain why
	member(s)		reason for	your
	have		no board-	organization
	competence		level	does not
	on climate-		competence	have at least
	related		on climate-	one board
	issues		related	member
			issues	with
				competence
				on climate-
				related
				issues and
				any plans to
				address
				board-level
				competence
				in the future
Row	Yes	Our Board of Directors and its committees collaborate closely to implement and promote effective oversight of Oxy's climate-related risks and strategy through	<>	<>
1		periodic reports and communications with management. The Sustainability and Shareholder Engagement Committee monitors climate-related public policy trends	Applicable>	Applicable>
		and related regulatory matters and contributes to the Board's oversight and understanding of ESG and sustainability issues and their relationship to the company's
		business and strategy. Oxy's Sustainability and Shareholder Engagement Committee is comprised of four members with deep and diverse experience in multiple
		aspects of energy, environmental technology, financial and industrial sectors in both government service and the private sector. We believe that this collective
		experience is important to Oxy and its shareholders in overseeing Oxy's net-zero strategy and promoting a just transition. Directors are provided with continuing
		education, including business-specific learning opportunities through site visits and briefing sessions led by internal experts or third parties on topics relevant to
		Oxy. Directors also attend additional continuing education programs through organizations such as the National Association of Corporate Directors. Board
		Committees and the full Board receive presentations from diverse employees on strategic topics such as capital allocation, workforce development, commodities
		markets, carbon removal, emerging GHG voluntary and compliance markets, and regulatory developments. The Board holds an annual strategy session with: •
		deep dives into each business segment and interdisciplinary functions (e.g., emissions control and water technologies, geoscience, reserves, and life of field
		planning) • presentations from external speakers on topics such as the carbon removal policy and the energy transition. Led by the Governance Committee, the
		Board also conducts a robust annual evaluation of its performance and the performance of each of the Board's committees, including the Sustainability and
		Shareholder Engagement Committee and the individual directors. The annual Board evaluation includes an assessment of, among other things, whether the Board
		and its committees have the necessary diversity of skills, backgrounds and experiences to meet Oxy's needs.

C1.2

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(C1.2) Provide the highest management-level position(s) or committee(s) with responsibility for climate-related issues.

Name of the position(s) and/or committee(s)	Reporting	Responsibility	Coverage of	Frequency of
	line		responsibility	reporting to the board
				on climate-related
				issues
Chief Executive Officer (CEO)	<>	Both assessing and	<>	More frequently than
	Applicable	managing climate-related	Applicable>	quarterly
	>	risks and opportunities
Safety, Health, Environment and Quality committee	<>	Both assessing and	<>	More frequently than
	Applicable	managing climate-related	Applicable>	quarterly
	>	risks and opportunities
Corporate responsibility committee	<>	Both assessing and	<>	More frequently than
	Applicable	managing climate-related	Applicable>	quarterly
	>	risks and opportunities
Other C-Suite Officer, please specify (Oxy's leadership team includes the CEO, the Presidents of Oxy's business lines including	<>	Both assessing and	<>	More frequently than
Onshore Resources and OLCV, International and Gulf of Mexico, Oxy Energy Services and OxyChem, and the Senior Vice	Applicable	managing climate-related	Applicable>	quarterly
President, Environmental and Sustainability.)	>	risks and opportunities

C1.2a

(C1.2a) Describe where in the organizational structure this/these position(s) and/or committees lie, what their associated responsibilities are, and how climate- related issues are monitored (do not include the names of individuals).

Oxy is governed by its Board, which is led by an independent Chairman, and its six committees, composed entirely of independent directors. The Board oversees environmental, health, safety and sustainability matters, including those with respect to climate change, as an integral part of its oversight of Oxy's strategy and key risks. These matters are inherent to our strategic plan and, accordingly, incorporated into regular Board meetings as well as the Board's annual in-depth strategic review session. In addition, the Board's committee structure is designed to provide the Board and its committees with the appropriate oversight of relevant sustainability issues, and the Sustainability and Shareholder Engagement Committee provides close oversight of key sustainability and social responsibility issues. It reviews and monitors climate-related public policy trends and related regulatory matters and oversees Oxy's sustainability programs, policies and practices, including the Human Rights Policy and Oxy's Climate Policy Positions. It also oversees Oxy's external reporting on ESG and sustainability matters, including climate-related risks and opportunities. The Sustainability and Shareholder Engagement Committee reports to the full Board on its oversight and activities.

As part of Oxy's governance and risk management processes, senior management regularly reports to the Board on financial, operational, human capital, cyber security, HSE, sustainability and climate-related matters. Oxy's President and CEO leads our strategy to develop and deploy carbon management solutions at scale to meet Oxy's net- zero emissions goals and help other companies achieve their climate goals. The ongoing implementation of our low carbon strategy is developed for review and approval by the CEO and the Board by the President of Onshore Resources and Carbon Management and his direct report, the President of OLCV, in conjunction with the other business line Presidents and the Senior Vice President of Environmental and Sustainability, who are also accountable for implementing and reporting on the strategy. Also active in climate-related strategy development are the Senior Vice President and Chief Financial Officer and the Vice President of Strategic Planning, Analysis and Business Development. Oxy's pathway to meet our industry-leading goals depends on integrating the expertise, infrastructure, property holdings, technologies and workforce of each of our businesses. Accordingly, in addition to the Presidents of Onshore Resources and Carbon Management and OLCV noted above, the Presidents of International/Gulf of Mexico, OxyChem, Oxy Energy Services and our Glenn Springs Holdings remediation company each has a direct role in our sustainability programs and performance.

C1.3

(C1.3) Do you provide incentives for the management of climate-related issues, including the attainment of targets?

	Provide	Comment
	incentives
	for the
	management
	of climate-
	related
	issues
Row	Yes	The Executive Compensation Committee of the Board has set annual climate-related targets for executive officers, directly linking compensation to Oxy's sustainability performance. The
1		Committee reviewed and set metrics and targets for the executive officers including an annual cash incentive (ACI) award and long-term incentive awards. A portion of the ACI focuses on
		sustainability and climate-related issues including the advancement of Oxy's carbon management platform and the reduction of operating emissions. In 2021, given Oxy's commitment to
		advance climate solutions and the importance of the energy transition to shareholders, the Compensation Committee increased the sustainability weighting to 30% of the company
		performance portion of the ACI for 2021, including targets for low-carbon ventures and emissions reduction projects and operational emissions reduction efforts. The Compensation Committee
		determined to maintain the same metrics and the 30% weighting for the 2022 ACI award.

C1.3a

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