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2002 ChevronTexaco Corporate Responsibility Report Overview & StrategyCorporate Responsibility StrategyAn Integrated Corporate Responsibility Strategy: A New ImperativeImmediately following the 2001 merger of Chevron and Texaco, weconducted an internal assessment of our corporate responsibility practices.Our company has a number of policies, programs and activitiesthat relate to corporate responsibility, and around the world, we havegained on-the-ground experience addressing issues ranging from HIV/AIDS to operating in ecologically sensitive regions. But we saw anopportunity to take a more integrated approach to corporate responsibilityand, in some instances, enhance or formalize our efforts. This wasdriven by our desire for our activities and operations to create benefitsfor society, the environment and the communities in which we work,while simultaneously creating value for our stockholders.Reviewing Our Policies and ProcessesAn important early step in our process of developing an integrated corporateresponsibility strategy was to inventory and evaluate our policiesand processes related to the issues we believe are most relevant to us andour stakeholders. We are a founding supporter of the Global SullivanPrinciples, an external standard covering a range of social and environmentalissues. We also have numerous internal policies, programs andactivities related to various aspects of corporate responsibility. We saw,however, an opportunity to approach corporate responsibility in a moresystematic way. As a result, we have begun developing some new policiesand processes that span our worldwide operations which we believe willenable us to manage these issues more effectively.ChevronTexaco’s Corporate Responsibility Approach+ChevronTexacoOctober2001Merger2001Better Understanding Our Operating Environmentand Changing ExpectationsWe recognize that, like all companies, we must be cognizant of how wemanage the social, economic and environmental impacts of our operations.To help us learn about emerging issues, we undertook a series ofdiscussions with corporate responsibility experts and other stakeholdersto increase our understanding of these changing expectations and theirperceptions of our performance. We also researched what other companiesare doing to address corporate responsibility. As we’ve sought tobroaden and deepen our understanding of the issues that affect ourbusiness and the impacts of our operations, we’ve focused on the issuesthat we believe are of particular relevance to the energy industry giventhe nature, location and impacts of our operations. These include:> ethics, transparency and financial reporting;> community engagement and development;> human and labor rights;> health and safety;Internal & ExternalAssessmentStrategy DevelopmentPolicy DevelopmentMeasurement & Reporting> environment, conservation and climate change;> workplace practices and employee relations;Integrated Corporate ResponsibilityManagement Piloting> integration of corporate responsibility considerationsinto our supplier relationships.Corporatewide Deployment2002 2003 2004 2005 20065Our Near-Term Corporate Responsibility PrioritiesBuilding on our existing corporate responsibility policies and activities,we are focusing efforts in the following areas:> Corporate Responsibility Guiding Principles – We are developingprinciples that will provide additional operational guidance toemployees about how to put The ChevronTexaco Way commitmentto “conduct our business in a socially responsible and ethical manner,respect the law, support universal human rights, protect theenvironment and benefit the communities where we work” intopractice in our day-to-day actions and decisions.> Pilot Projects – We are planning pilot projects in a sampling of operationallocations to gain practical experience in taking a more systematicapproach to corporate responsibility management. We want to identifywhere we can better integrate social and environmental considerationsinto our existing management systems as well as areas where we mayneed to develop new processes to more consistently incorporate theseconcerns into day-to-day decision-making. The goal is to learn techniquesand develop tools that can then be applied across our company.We believe the pilots also will help us learn additional ways to measureand assess our corporate responsibility performance.> Human Rights and Community Engagement – Our review identifiedthese two issues as being of particular and increasing importance toChevronTexaco. Building on our existing policy framework, we aredeveloping a corporate Human Rights Statement to provide additionalguidance on conducting our operations in a manner consistent withuniversal human rights principles. We are planning to test implementationof the statement in the coming year. We also initiated an assessmentof our global community engagement activities to learn ways toincrease the impact of our efforts.© 2003 ChevronTexaco Corporation. All Rights Reserved.