Mark E. Lashier

President and CEO,

Chevron Phillips Chemical

along the way. I look forward to reporting progress on our contributions to a more sustainable future.

A Note from Mark Lashier

For nearly two decades, we have shaped Chevron Phillips Chemical (CPChem) to operate as a premier petrochemical company with a reputation for safety, reliability and environmental responsibility. I am proud of the progress we have made in our sustainability journey, one that you will get a glimpse of in this Sustainability Report. Our success is attributable to the employees, contractors, customers and communities that trust us and drive our continued improvement.

Our products play an important role in a lower-carbon, sustainable future, and we are well-positioned to meet the evolving needs of our customers and society. Our sustainable growth is achieved by ensuring our employees and contractors, communities and environment are protected. Throughout 2019, we embraced progress on many initiatives while navigating unexpected challenges.

Last year, we announced two major growth projects that will add to our portfolio of assets and expand our capacity to provide products that make life better. The U.S. Gulf Coast II Petrochemical Project and the Ras Laffan Petrochemical Project, both joint ventures with Qatar Petroleum, are expected to create more than 20,000 new construction jobs and 1,100 new permanent positions as both projects begin to materialize. We are proud of this growth, which will help us continue to sustainably meet the needs of the world’s growing middle class for decades to come.

We finished 2019 with our lowest-ever Process Safety Event Rate, showcasing impressive results that stem from our company-wide commitment to safety and environmental stewardship. We also saw reductions in our Energy Intensity at all our facilities across the globe, a true testament to our focus on managing resources responsibly. Additionally, 2019 was our best year ever in terms of employee safety. While we celebrate these successes, we also acknowledge the challenges we faced, including an increase in the Total Recordable Incidence Rate among our contractors in 2019. As a result of this, we initiated new programs targeted at enhancing the safety of these critical workers. As always, we remain dedicated to ensuring the safety of all people associated with our business.

In addition to our focus on employee and contractor safety, in 2019 we launched an enhanced diversity and inclusion initiative, ICARE 2.0 for Impact, which builds upon our original ICARE principles of Inclusion, Cooperation, Accountability and Respect Everyday to deepen employee engagement and celebrate differences across our company. Our workforce also participated in a culture survey that placed CPChem’s employee culture in the top quartile of more than 900 global companies. This assessment provided valuable insights into our culture that will progress innovation, accountability and transparency across our company in the coming years.

Throughout the year, we activated initiatives to support a circular economy for plastics both locally and abroad.

Additionally, we invested $15 million to the Circulate Capital Ocean Fund, the first investment fund dedicated to finding solutions to plastic waste in Southeast Asia. These projects will address the problem of plastic waste around the globe and are complemented by our Operation Clean Sweep® Blue pledge, which deepened our longtime commitment to eliminating pellet spills at our own facilities.

Developing solutions to eliminate plastic waste and to support a circular economy for our products will benefit our company and society. We are embracing progress in all areas of our business, striving to minimize negative impacts and maximize improvement opportunities. In a time of global uncertainty due to the COVID-19 pandemic, it is more important than ever that we focus on progress.

We remain firm on our commitment to proactively help the world find sustainable solutions and to improve our business