ADVANCING FORMULAS FOR A SUSTAINABLE FUTURE OUR SUSTAINABILITY JOURNEY

A MESSAGE FROM OUR CEO, BEING GOOD STEWARDS PETER L. CELLA...... 4 OF OUR ENVIRONMENT...... 24 Energy Efficiency and Conservation PERSPECTIVES FROM OUR GLOBAL Greenhouse Gas and Global SUSTAINABILITY MANAGER...... 6 Emissions Management Reportable Emission Events Global Water Consumption CHEVRON PHILLIPS CHEMICAL Recycling and Waste Reduction BY THE NUMBERS...... 7 CREATING PRODUCTS OUR COMPANY AT A GLANCE...... 8 THAT IMPROVE LIVES...... 30 Joint Ventures Our Responsibility Research & Technology REACH Products Products that Reduce Production Facilities Environmental Impact Sales Products that Improve Safety Leadership Products that Improve Health

EVOLVING OUR BUSINESS STRATEGY ENSURING OUR SUPPLY CHAIN TO SUSTAIN GROWTH...... 14 REFLECTS OUR VALUES...... 32 U.S. Gulf Coast Petrochemicals Project GROWING OUR WORKFORCE...... 33 Diversity & Inclusion DRIVING OPERATIONAL Learning & Development EXCELLENCE...... 16 Keeping Employees Healthy Responsible Care® POSITIVELY IMPACTING BUILDING A CULTURE OF SAFETY..... 18 OUR COMMUNITIES...... 36 Tenets of Operation Social Investments Process Safety Security OUR ECONOMIC PERFORMANCE...... 40 Emergency Preparedness ABOUT THIS REPORT...... 41

INDEX TO REPORTING GUIDELINE INDICATORS...... 42

HEALTH, SAFETY, ENERGY AND ENVIRONMENT DATA ASSUMPTIONS...... 43

CHEVRON PHILLIPS CHEMICAL COMPANY LLC: SUSTAINABILITY REPORT 3 A MESSAGE FROM OUR CEO

LAYING THE FOUNDATION FOR SUSTAINABLE GROWTH Chevron Phillips Chemical Company all areas of our business, including has always been focused on creating our safety and environmental shareholder value and growing our performance and developing the business in a way that is sustainable highly diverse workforce we need to for our employees, customers and stay competitive and profitable. communities. To us, sustainable growth means keeping the health From setting safety records in Qatar and safety of our workforce at the and reducing seawater consumption forefront of everything we do; it in Singapore to building Habitat for means creating the chemical building Humanity houses in Baytown and blocks for end-use products that Conroe, the pages of this report leave a smaller carbon footprint and reveal the dedication of Chevron improve the quality of consumers’ Phillips Chemical employees lives; and it requires that we act worldwide to safely manufacture ethically and responsibly as a model quality products, better their corporate citizen in a diverse, global communities and support their business climate. neighbors. Our stories demonstrate the progress we are making toward Since we published our last report, integrating sustainable practices into we have made great progress toward the fabric of everything we do as a a new phase of sustainable growth. company and as people. Driven by increased demand for our products and fueled by the shale At Chevron Phillips Chemical, we boom in North America, in 2013, hold ourselves to the highest ethical our owners green-lighted a $6 billion standards, and we always aim to act project to build new assets along with authenticity and communicate the U.S. Gulf Coast. As we continue with transparency. While this report with planning, construction and serves as an important reminder operation of our new facilities, we are of where we’ve been on our committed to being good stewards of sustainability journey, it also forces this investment. us to keep an eye toward where we are going and how we will get Additionally, in 2013 we refined our there safer, faster, with a smaller business strategy to better position environmental footprint and greater us for long-term success in this positive social impact. period of unprecedented growth. As a company, we reaffirmed our focus on continued improvement in

Peter L. Cella CEO, Chevron Phillips Chemical

4 ADVANCING FORMULAS FOR A SUSTAINABLE FUTURE This report forces us to keep an eye toward “where we are going and how we will get there safer, faster, with a smaller environmental footprint and greater positive social impact.

PETER L. CELLA ” CEO, Chevron Phillips Chemical

CHEVRON PHILLIPS CHEMICAL COMPANY LLC: SUSTAINABILITY REPORT 5 PERSPECTIVES FROM OUR GLOBAL SUSTAINABILITY MANAGER

ADVANCING OUR JOURNEY Growing sustainably in today’s We also engaged industry connected world requires Chevron stakeholders to bring our company’s Phillips Chemical to listen to our perspective to the conversation about stakeholders, align our business sustainability. For example, at the practices with what matters most inaugural Gulf Petrochemicals & to them and share our progress Chemicals Association’s Sustainability regularly. That’s why we are thrilled Summit in Dubai, we provided to publish our third report, which guidance to the chemical industry demonstrates how we’re building on how to choose a sustainability on our foundational practices in reporting standard. Core members safety, environmental and product of our leadership team participated stewardship, corporate citizenship in sustainability-related committees and economic pragmatism to with leading organizations like the accelerate our performance. American Chemistry Council and Society of Plastics Engineers. As we foster open dialogue with our stakeholders – customers, suppliers, For Chevron Phillips Chemical, communities, industry partners and continuing this open dialogue is employees – we are prioritizing paramount to determining the next sustainability issues that are relevant steps on our sustainability journey. to them and focusing our resources to Without the support of our customers, make positive impacts in those areas. industry, employees and neighbors, Increasingly, these groups expect we cannot achieve our aggressive more from us, and as a result, we growth goals. As we anticipate continue to raise the bar for ourselves. this next chapter in our company’s expansion, we are even more Throughout 2013, we continued the committed to working hand in hand conversation about sustainability with with you, our stakeholders, to identify our employees by completing our first and understand the challenges and internal materiality assessment which opportunities ahead. led us to create a team to investigate life cycle assessment processes. In Please let us know how we are our communities, representatives doing in our journey. Your feedback from Chevron Phillips Chemical’s will advance all of us toward a manufacturing sites regularly sustainable future. engaged with local leaders and residents to collaborate on issues of mutual importance, from developing the local workforce to reducing emissions. Rick Wagner Global Sustainability Manager, Chevron Phillips Chemical

6 ADVANCING FORMULAS FOR A SUSTAINABLE FUTURE CHEVRON PHILLIPS CHEMICAL BY THE NUMBERS

CHEVRON PHILLIPS CHEMICAL COMPANY LLC: SUSTAINABILITY REPORT 7 OUR COMPANY AT A GLANCE

As one of the world’s top producers of olefins and polyolefins and a leading supplier of aromatics, alpha olefins, styrenics, specialty chemicals, piping and proprietary plastic, Chevron Phillips Chemical Company LLC is committed to driving sustainable practices throughout all of its businesses. Our chemicals and plastic resins are essential to the manufacture of more than 70,000 consumer and industrial products which makes us highly invested in preserving natural resources, developing our employees and caring for the communities around us.

Our company was founded on July 1, 2000, when Chevron Corporation and Phillips Petroleum Company, now Phillips 66, combined their worldwide petrochemical businesses. Chevron and Phillips 66 and their wholly owned affiliates each continue to own 50 percent of Chevron Phillips Chemical.

Headquartered in The Woodlands, Texas, Chevron Phillips Chemical has $10.5 billion in assets, interest in 37 manufacturing facilities worldwide and nearly 5,000 employees.

JOINT VENTURE* Saudi Chevron Phillips Company (SCP, in Qatar Chemical Company Ltd. (Q-Chem) K R Copolymer Co., Ltd (KRCC) is a joint operation since 2000) and Jubail Chevron and Qatar Chemical Company II Ltd. venture company with ownership by a Phillips Company (JCP, operational in 2008) (Q-Chem II) are joint ventures between Chevron Phillips Chemical subsidiary are 50/50 joint ventures between a a subsidiary of Chevron Phillips (60 percent) and Daelim Company Chevron Phillips Chemical subsidiary Chemical (49 percent), Mesaieed (40 percent). KRCC was formed in and the Saudi Industrial Investment Petrochemical Holding Company February 2000. Group (SIIG). Q.S.C. (49 percent), and Qatar Petroleum (2 percent). Q-Chem Shanghai Golden Phillips Petrochemical Saudi Polymers Company (SPCo) is a joint commenced operations in 2003, while Co., Ltd (SGP) is a joint venture venture company formed in 2007, Q-Chem II began operations in 2010. between a Chevron Phillips Chemical owned by a Chevron Phillips Chemical The Ras Laffan Olefins Company subsidiary (40 percent) and Shanghai subsidiary (35 percent) and National (RLOC) facility is operated by Q-Chem Petrochemical Company (60 percent), Petrochemicals Company (Petrochem) and owned 53.15 percent by Q-Chem a subsidiary of Sinopec (China (65 percent). II, 45.85 percent by Qatofin and 1 Petroleum and Chemical Company). percent by Qatar Petroleum. Petrochemical Conversion Company (PCC) is a Chevron Phillips Chemical operates joint venture between Saudi Industrial Chevron Phillips Singapore Chemical (CPSC) the largest loop slurry high-density Investment Group (50 percent) was incorporated in April 1980, polyethylene unit in North America at and a Chevron Phillips Chemical and is a joint venture between a its Cedar Bayou, Texas, complex and subsidiary (50 percent), a wholly Chevron Phillips Chemical subsidiary shares production on a 50/50 basis owned subsidiary of Chevron Phillips (50 percent), Singapore Economic through a sharing venture with INEOS. Chemical LLC. Development Board Investments (30 percent) and Sumitomo Chemical (20 Americas Styrenics LLC is a combination percent). CPSC is based on Jurong of the second largest polystyrene Island; a world-class industrial hub producer and the third largest styrene located one mile off the Singapore producer in the Americas through a mainland. 50/50 joint venture with Trinseo.

*Reflects current information at the time this report was published – December 2014 8 ADVANCING FORMULAS FOR SUSTAINABILITY RESEARCH & TECHNOLOGY At Chevron Phillips Chemical, conduct a range of research activities. Other proprietary technological developing innovative technologies Laboratory/bench and pilot scale achievements include: that help us retain our competitive process development, analytical and • On-purpose 1-hexene technology advantage, produce our materials mechanical testing, patent support, • Full range normal alpha olefin safely and efficiently, and create and technical and service support for technology industry-changing advancements customers worldwide are only a few • K-Resin® styrene-butadiene and process improvements is at the of our activities. Our state-of-the-art copolymer (SBC) center of everything we do. Located Plastics Technical Center is equipped • Methyl mercaptan process and in Bartlesville, Oklahoma, and with the latest processing and testing technology Kingwood, Texas, our research and technology for molding and extruding • Aromax® catalyst and process technology centers provide full-scale polymer and copolymer resins. technology for on-purpose petrochemical and polymer research, benzene production including new catalyst development, Chevron Phillips Chemical continues • First and second generation product and process development, to build on a long history of scientific functional drilling fluids and commercial process engineering discoveries. Our proprietary • Conventional and high viscosity and support. MarTECH™ loop-slurry process is one polyalphaolefin manufacture of the most licensed petrochemical • E-Series™ acetylene reduction The company holds more than processes for the production of technology 2,500 domestic and international high-density polyethylene and • mPact® metallocene polyethylene patents and patent applications, and polypropylene in the world with more technology employs more than 260 scientists, than 80 commercial reactors using this researchers and engineers who technology.

CHEVRON PHILLIPS CHEMICAL COMPANY LLC: SUSTAINABILITY REPORT 9 CHEVRON PHILLIPS CHEMICAL PRODUCTS

PRIMARY BRANDS

10 ADVANCING FORMULAS FOR A SUSTAINABLE FUTURE PRODUCT STREAM

CHEVRON PHILLIPS CHEMICAL COMPANY LLC: SUSTAINABILITY REPORT 11 PRODUCTION FACILITIES

ASSETS AND SALES FOR THE YEAR ENDED DEC. 31, 2013

12 ADVANCING FORMULAS FOR A SUSTAINABLE FUTURE SENIOR LEADERSHIP*

BOARD OF DIRECTORS Our company is governed by its Board of Directors comprised of eight representatives, under the terms of a limited liability company agreement. There are three voting representatives each from Chevron and Phillips 66, and the chief executive officer PETER L. CELLA MARK LASHIER RON CORN President & CEO EVP Olefins & Polyolefins SVP Specialties, Aromatics and Styrenics and the chief financial officer of Chevron Phillips Chemical are non- voting representatives. Certain major decisions and actions require the approval of the Board. All Board actions require the approval of at least one representative each of Chevron and Phillips 66.

*Reflects senior leadership at the time this report was published – December 2014

TIM HILL TIM LEVEILLE DAN COOMBS SVP, Legal and Public Affairs, General SVP, CFO & Controller SVP Manufacturing Counsel & Corporate Secretary

DON LYCETTE SCOTT SHARP PEGGY COLSMAN SVP Research & Technology SVP, Projects VP & Chief Information Officer

KATE HOLZHAUSER JIM TELLJOHANN GREG WAGNER KELLY RADCLIFFE VP Environment, Health, Safety & Security VP Corporate Planning & Development VP Human Resources General Manager, Auditing

CHEVRON PHILLIPS CHEMICAL COMPANY LLC: SUSTAINABILITY REPORT 13 EVOLVING OUR BUSINESS STRATEGY TO SUSTAIN GROWTH

Chevron Phillips Chemical’s vision for driven as the foundation. We added Every day we strive to make progress the future is to be the premier chemical four newly refined strategic elements against our business strategy. By company achieving superior financial to support our growing structure: operating in the manner that the results while protecting people and Operational Excellence, Organizational diagram is laid out – keeping our the environment. We recently refined Capabilities, Competitive Advantage vision at the center of everything we our business strategy to add more and Profitable Growth. While we have do, reinforcing it with a sound strategy dimension, better align with our vision practiced all of these elements since and executing on the most critical and set us on a path to sustainable the company’s inception, they are now elements of our business – we will growth for years to come. more clearly defined and part of a reach our vision safely and profitably. formal process that will guide us as we As we re-envisioned our strategy, we move forward. used our core values of safety, mutual respect, integrity and performance

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14 ADVANCING FORMULAS FOR A SUSTAINABLE FUTURE U.S. GULF COAST PETROCHEMICALS PROJECT In 2013, Chevron Phillips Chemical The state-of-the-art, world-scale 2013 ACCOMPLISHMENTS received board approval to execute polyethylene units will be capable • Zero recordable injuries its groundbreaking U.S. Gulf Coast of producing a wide variety • Surpassing 1 million man hours (USGC) Petrochemicals Project, a of high and linear low density without a recordable injury $6 billion expansion project critical polyethylene products including • Zero reportable spills or releases to its sustainable growth strategy. bimodal and metallocene-based during initial field preparation Initially announced in 2011, the USGC polyethylene polymers. These work and substation construction Petrochemicals Project consists of the facilities will incorporate Chevron • Implemented numerous construction of a world-scale ethane Phillips Chemical’s leading edge Operational Excellence initiatives cracker, the first to be built in the U.S. in MarTECH™ SL, mPact® metallocene and improvements in existing a decade, and two polyethylene units. and MarTECH™ Advanced Dual Loop programs/processes bimodal technologies. • Employee-led development of “We remain in the first mover position protocols utilized to conduct as we take another critical step in The ethane cracker is being built at quarterly fire drills and safety executing a project that will benefit our Chevron Phillips Chemical’s Cedar audits customers, suppliers, local communities Bayou plant in Baytown, Texas, and • Implemented storm water pollution and existing and future employees,” two polyethylene units are being built prevention plans to ensure that said Peter L. Cella, president and chief at a site in Old Ocean, Texas, near Cedar Bayou and Little Linnville executive officer of Chevron Phillips Chevron Phillips Chemical’s Sweeny Bayou were protected against Chemical. “We are able to realize plant. The USGC Petrochemicals Project pollutants in storm water run-off this important milestone thanks to is expected to create approximately • Incorporated several continued strong growth in demand 400 long-term direct jobs and 10,000 environmental factors into the for our products, shale resource engineering and construction jobs. facilities’ designs – low pressure development in the United States, and vent systems and operational the tremendous support of our owners.” “Overall, this project aligns perfectly elements for minimizing flare with Chevron Phillips Chemical’s emissions strategy of profitable growth, • Designed system to reduce competitive advantage, operational emissions by eliminating pellet excellence and organizational storage and blending operations, capability, and we look forward to a and conveying product directly to successful and safe startup in 2017,” rail cars said Cella. CHEVRON PHILLIPS CHEMICAL COMPANY LLC: SUSTAINABILITY REPORT 15 DRIVING OPERATIONAL EXCELLENCE

As a member of the American Chemistry Council (ACC), Chevron Phillips Chemical participates in the Responsible Care® program for our U.S. petrochemical manufacturing Our commitment to operating in Each day we strive to make optimal facilities, product lines, headquarters, a safe and responsible manner use of the resources we consume and and research and technology is exemplified in the company’s minimize emissions and waste. We use operations. In addition, Chevron Operational Excellence System – a our Operational Excellence System to Phillips Chemical affiliates in global framework for managing the recognize and reduce the risks of our Qatar and the Kingdom of Saudi health and safety of our employees operations and products throughout Arabia are on track to complete ® and contractors as well as operating their lifecycles. Responsible Care RC14001 responsibly within our communities. An certification, demonstrating their essential component to our sustainable Through our Operational Excellence commitment to the principles of ® growth strategy, Operational System framework, we communicate Responsible Care promoted by the Excellence helps us continually company results and welcome Gulf Petrochemicals & Chemicals improve process safety, asset security, the input of our employees and Association (GPCA) and the ACC. reliability and utilization as well contractors, regulatory agencies, our ® as the delivery of quality products communities, our customers and other Responsible Care embraces the and services to our customers in an interested stakeholders. At Chevron development and application of environmentally responsible manner. Phillips Chemical, Operational innovative chemistry, helping our Excellence incorporates a “Plan- industry contribute to sustainable Building upon heritage systems Do-Check-Act” model to achieve development while allowing us to from our owner companies, our continual improvement. It requires meet the world’s growing need Operational Excellence System is used that each facility and product line be for essential chemicals and the worldwide to: formally audited by our Corporate products those chemicals make • Set goals for and assume Environment, Health, Safety and possible. Chevron Phillips Chemical’s measurement of continual Security Department. Our Operational Operational Excellence System improvement Excellence System reduces operating is designed to fulfill the ACC’s ® • Provide alignment of activities and risks and promotes regulatory Responsible Care Management resources to meet objectives compliance. System requirements. • Assess and manage risks • Gain shareholder input • Assure the quality of our products and services throughout a product’s lifecycle • Rigorously audit our performance against operational objectives and compliance requirements

16 ADVANCING FORMULAS FOR A SUSTAINABLE FUTURE CHEVRON PHILLIPS CHEMICAL COMPANY LLC: SUSTAINABILITY REPORT 17 BUILDING A CULTURE OF SAFETY

At Chevron Phillips Chemical, safety is Our progress is the result of the SAFETY PERFORMANCE1 more than a priority — it is ingrained in commitment of our entire workforce our company culture. Our “Target Zero” and the success of our Operational 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 safety philosophy ensures that all of our Excellence System. Each year, we facilities practice stringent processes continue to see increased employee 2001 to maintain the safe operation of involvement and leadership support, company assets around the globe. We expanded behavioral safety processes 2002 set aggressive targets to drive continual at all facilities, increased involvement improvement and to ensure that our of cross-functional employee safety 2003 employees and contractors return home networking and action teams, and an 2004 safely every day. increased focus on contractor safety. We view employee and contractor 2005 Since 2002, we have decreased the safety statistics together as one unit

combined employee and contractor because both are of equal importance 2006 recordable incidence rate by 60 to our company’s success.

percent. Seventeen of our 20 eligible 2007 U.S. sites have achieved the STAR Management, employees and

designation through OSHA’s Voluntary contractors are expected to reinforce 2008 Protection Program (VPP). Seven of our safety expectations and ensure facilities have operated for five years or competence in safety matters inherent 2009 more without an employee recordable to their roles. The company provides injury or illness and five facilities have safety training for executives, 2010 operated without a single employee managers, professionals and hourly recordable injury or illness since the employees that is tailored to their 2011 formation of the company in 2000. respective responsibilities. 2012 We remain focused on continuing to improve our safety performance and 2013

protecting the health and safety of EMPLOYEE our employees, our contractors, our CONTRACTOR (excludes Major Projects) partners and the communities in which we operate. EMPLOYEE + CONTRACTOR (excludes Major Projects) MAJOR PROJECT CONTRACTORS TOTAL EMPLOYEE PERFORMANCE VS. ACC MEMBER COMPANIES2 1.4

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CPC Global ACC Top Quartile

ACC Top 10% ACC Best 18 ADVANCING FORMULAS FOR A SUSTAINABLE FUTURE Q-CHEM SETS SAFETY RECORDS IN 2013 Q-Chem’s strong safety performance Q-Chem follows a rigorous safety MAKING SAFETY A PRIORITY IN PLANO is built on a culture that extends from reporting and training process At our Performance Pipe division senior management to shift workers. In that aligns with OSHA and ISO headquarters in Plano, Texas, 2013, the facility achieved a number Standards for measurement of safety employees are committed to making of safety performance milestones. performance. In 2013, Q-Chem safety and Operational Excellence While operating at record levels, committed more than 114,000 hours a priority. In 2013, this facility injury rates for employees and toward training its staff on Health, completed 1 million work hours contractors were at the lowest ever, Safety and Environmental topics. without a recordable injury/illness with zero injuries for contractors and a Focusing on the site’s life-critical and was instrumental in developing a recordable incidence rate of 0.03 for procedures, the team revamped its Division Supervisor Safety Leadership employees. training program to include multiple Academy for front line supervisors. languages and a field-based, hands- The team also installed Electronic on component. Communication Stations at strategic locations within each plant to ensure that employees receive Operational Excellence messages on safety and quality in real time. TOTAL RECORDABLE INCIDENCE RATE (TRIR)1

0.50 0.60 0.18 0.60 0.45 0.16 0.50 0.50 0.40 0.14 0.35 0.40 0.12 0.40 0.30 0.10 0.25 0.30 0.30 0.08

0.20 TRIR TRIR TRIR TRIR 0.20 0.06 0.20 0.15 0.04 0.10 0.10 0.10 0.05 0.02 0.00 0.00 0.00 0 2008-2010 2011-2013 2008-2010 2011-2013 2008-2010 2011-2013 2008-2010 2011-2013 EMPLOYEE CONTRACTOR MAJOR PROJECT CONTRACTORS TOTAL COMPARISON (excludes Major Projects) CHEVRON PHILLIPS CHEMICAL COMPANY LLC: SUSTAINABILITY REPORT 19 TENETS OF OPERATION The achievement of Operational Excellence is ultimately determined instant to instant, day after day, by the actions of If it’s worth doing, employees and contractors through adherence to our Tenets of Operation. The Tenets provide a universal code of conduct do it better! to guide decision-making by all employees and contractors for working safely and is viewed as a “license to act.” Our company’s Leadership Team conveys its priorities through the following guiding principles: There is always • Work safely or not at all time to do it right! • There is always time to do it right • If it’s worth doing, do it better Work safely The Tenets empower Chevron Phillips Chemical employees and contractors at all levels of the or not at all! organization to work safely and to respond consistently and appropriately in a timely manner, thus preventing injuries/illnesses and process safety events. We believe that safety is everyone’s responsibility. Any employee or contractor has the right and obligation to stop any work activity deemed unsafe. This corporate philosophy, supported by the Tenets and our Operational Excellence System, helps our co-workers arrive at work and go home safely while targeting zero injuries/ illnesses or incidents.

STARS SHINE IN TURNAROUND Every five to six years, nearly all of our a kick-off event and group safety production units undergo a scheduled toolbox meetings. In addition, daily turnaround. This is the time when focused inspections, management maintenance tasks and construction walkabouts and behavior-based safety projects that can only be completed observations took place to reinforce during a full shut down are performed. safe behavior expectations. With an influx of workers in the area of the unit to quickly make the CPSC also created the Safe Turn- necessary changes and return it to full Around Reward (STAR) program production, safety is an imperative, which involved all employees and, as such, it is built into every one and contractors. The objective of of our turnaround job plans. The goal the program was to reinforce the is always Target Zero. expectation to work safely, one day at a time. In this program, each In 2013, our Chevron Phillips employee and contractor answered Singapore Chemical (CPSC) facility the question – what have you done met this safety goal by completing a to make today a safe day? Each 56-day plant turnaround with zero week, plant leadership selected the employee and contractor recordable 10 brightest STARs. Five overall best injuries/illnesses. An incredible entries were then selected and the amount of effort was involved – more brightest STARs of the week were than 500 turnaround contractors presented with prizes. Building a great were assigned safety coaches and team early on, involving everyone in attended safety orientation training, fun and unique ways to promote safety and following safe behaviors increases the likelihood that everyone goes home safely every day.

20 ADVANCING FORMULAS FOR A SUSTAINABLE FUTURE PROCESS SAFETY TIER 1 AND TIER 2 Effectively managing process safety to demonstrates that our continued PROCESS SAFETY EVENT RATE3 prevent incidents and manage key risks focus on preventing loss of primary inherent to our business is a cornerstone containment events resulted in a 0.35 of our company’s Operational reduction of Tier 1 and Tier 2 process Excellence System. Process safety is safety events during the year. 0.30 core to protecting people and ensuring asset integrity, as well as supporting Mechanical integrity was a growth and economic stability. Through primary focus within our facilities 0.25 our Operational Excellence System, throughout 2013. We enhanced our facilities are required to conduct self- organization’s mechanical integrity evaluations to ensure compliance with procedures to more comprehensively 0.20 Chevron Phillips Chemical internal ensure our process equipment is standards and regulatory requirements. properly constructed, installed and 0.15 maintained to prevent failures and Our process safety systems are accidental releases. Additionally, designed to meet, and in many cases, we improved our ability to leverage 0.10 exceed industry norms. Additionally, mechanical integrity data across our our process safety organization facilities to support decision making, 0.05 collaborates throughout the year to planning and maintenance processes. identify best practices. We also expanded our process safety 0.00 In 2013, our company expanded training to ensure employees and 2010 2011 2012 2013 its process safety metrics to better contractors are knowledgeable about Tier 1 and Tier 2 Process Safety Event Rate evaluate and manage programs. the risks and requirements involved Results of process safety indicators in our manufacturing processes. By are reported by manufacturing focusing on the human element, we facilities and are reviewed routinely by hope to better understand, predict management. Sixteen sites worldwide and influence behavior to maintain capture Tier 1 and Tier 2 process operational discipline. safety event rate data consistent with industry standards. This data

CHEVRON PHILLIPS CHEMICAL COMPANY LLC: SUSTAINABILITY REPORT 21 SECURITY Chevron Phillips Chemical strives to assessment methodology, alert levels provide a safe and secure environment and security response measures, and for personnel, contractors, customers security incident reporting guidelines. and visitors. Our Global Security team has developed and implemented Chevron Phillips Chemical facilities are a Security Management System. compliant with the Responsible Care® Aligning with our Operational Security Code, which requires security Excellence System, it features risk assessments (SRAs) through our structured security programs to Operational Excellence System. protect personnel, assets, operations, Specific facilities are compliant to one information and the company’s or more additional security regulations reputation in a dynamic threat as dictated by location, facility type, environment. Global Security has also chemicals onsite or products produced developed and published a variety and modes of transportation. We take of security guidelines and global pride in maintaining full compliance Operational Excellence procedures. with applicable domestic and These include a security risk international security regulations.

22 ADVANCING FORMULAS FOR A SUSTAINABLE FUTURE EMERGENCY RESPONSE PREPAREDNESS While we manage our business with the goal of preventing incidents, Chevron Phillips Chemical maintains a strong capability to respond to operational emergencies to minimize EMERGENCY RESCUE TEAM their potential impact. Emergency NAMED WORLD CHAMPIONS response teams, comprised of Chevron Chevron Phillips Chemical’s emergency Phillips Chemical personnel, as rescue team at the Cedar Bayou well as local and regional experts, facility in Baytown, Texas, exemplifies stay well-prepared by undergoing excellence at work. Each year frequent emergency response the team competes against other training. Briefings and drills simulating petrochemical companies from across scenarios including product spills, the country at the International Rescue fires, explosions, natural disasters and Emergency Care Association (IRECA) security incidents are conducted on conference. In 2013, the team placed a regular basis to ensure continual first in technical rescue and was improvement. named world champions. This win marked the team’s tenth victory in technical rescue.

CHEVRON PHILLIPS CHEMICAL COMPANY LLC: SUSTAINABILITY REPORT 23 BEING GOOD STEWARDS OF OUR ENVIRONMENT

We strive to conduct business in ENERGY EFFICIENCY AND CONSERVATION a safe, secure, injury-free and environmentally responsible manner Chevron Phillips Chemical’s energy with the capture and documentation and are committed to complying with data reflects our total energy of energy management practices for federal, state and local environmental consumption, including both energy implementation. This process allows regulations. To support these goals, consumed from fuels as byproducts each location to capitalize on “lessons our Operational Excellence System and the energy purchased and learned” at other sites. promotes internal consistency, while consumed by our manufacturing sites encouraging continuous improvement (fuel, electricity and steam). Results are reported monthly to senior in environmental performance. leadership. In 2013, three of our Our energy consumption data are international facilities participated in We recognize that to reach our compiled in accordance with the this program. goal of sustainable growth and meet methods used by the American the increasing global demand for Chemistry Council for the ACC Energy Examples of our energy efficiency petrochemicals, we must do so in a Efficiency and Greenhouse Gas improvement activities include: manner that protects the planet’s land, Annual Survey. Because Chevron • Furnace efficiency improvement water and air resources. We have Phillips Chemical is a diversified through burner retrofits and assessed baseline emissions, and our chemical company that operates a optimization ongoing monitoring demonstrates variety of process plants, we use an • Furnace safety system upgrades that our energy efficiency measures energy intensity index that establishes • Improvement of steam turbine have resulted in lower emissions a baseline expected energy efficiency and a reduced carbon footprint. consumption per pound of product for • Addition of steam generation Our challenge will be to continue to each unit to monitor the company’s • Execution of heat integration improve our performance while we energy reduction progress. The energy projects execute our dramatic growth strategy. intensity index is a ratio of the actual • Efficient operation of utility systems energy consumed over a baseline • Implementation of process energy consumption value. Chevron monitoring and optimization US MANUFACTURING ENERGY INTENSITY4 Phillips Chemical’s 2013 global annual programs ACTUAL ENERGY CONSUMED DIVIDED BY EXPECTED ENERGY CONSUMPTION energy consumption was 176 trillion Btu. Over the last five years, we In 2013, the best practice teams’ reduced our domestic energy intensity activities primarily focused on daily 102% index by 7.6 trillion Btu with the annual process monitoring and optimization, consumption averaging 1.2 percent steam system improvements, insulation below 2008 levels, or enough energy upgrades, and operating utility 100% to power 28,000 homes for five years. and flare systems efficiently. Energy management practices are an integral We have implemented an energy part of our business strategy. Through 98% efficiency and conservation program our Operational Excellence System and with the goal to institutionalize an energy efficiency and conservation

96% ENERGY INDEX energy management system that program we are committed to making will enable our U.S. manufacturing continuous improvements in energy sites and eventually all company efficiency and conservation. 94% sites worldwide to optimize energy consumption and make energy conservation part of the routine 92% decision-making process. Energy 2009 2010 2011 2012 2013 best practice teams from eight U.S. manufacturing locations are tasked

24 ADVANCING FORMULAS FOR A SUSTAINABLE FUTURE GREENHOUSE GAS EMISSIONS AND INTENSITY5 GLOBAL EMISSIONS INVENTORY6 REPORTABLE EMISSION EVENTS7

(direct and indirect) (aggregated NOx,SO2, CO, VOC, PM10) 10.0 1.0 20.0 1.0 120

100 8.0 0.8 16.0 0.8 80 GREENHOUSE GAS AND GLOBAL REPORTABLE EMISSION EVENTS 6.0 0.6 12.0 0.6 60 EMISSIONS MANAGEMENT We strive to be a good neighbor and steward of our natural resources. In 4.0 0.4 8.0 0.4 At Chevron Phillips Chemical we 40 continually strive to make our support of these goals, we track and investigate global reportable emission 4.0 0.2 operations more energy efficient. 2.0 0.2 20 The benefits are threefold: reduced events. A reportable emission event greenhouse gas (GHG) emissions, is one in which a release of material 0.0 0.0 0.0 0.0 0 reduced global emissions and lower to the air, water or land exceeds a 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 E statutory or regulatory reportable 2 production costs. Over the past DOMESTIC DOMESTIC DOMESTIC decade we have expanded our quantity (RQ). We also consider E/LB PRODUCT events resulting in a water release INTERNATIONAL 2 INTERNATIONAL INTERNATIONAL international operations to include NUMBER OF EVENTS MILLION TONS CO LB. CO GLOBAL GHG INTENSITY THOUSAND TONS GLOBAL GHG INTENSITY MILLION LBS/PRODUCT olefin production and associated in excess of water discharge limits derivative facilities in Qatar and The found in permits and/or regulations 5 6 7 Kingdom of Saudi Arabia. These as GREENHOUSEreportable GASemission EMISSIONS events. AND INTENSITYFurther, GLOBAL EMISSIONS INVENTORY REPORTABLE EMISSION EVENTS events specifically defined in local additions to our operating capacity (direct and indirect) (aggregated NOx,SO2, CO, VOC, PM10) have achieved historically high levels regulations10.0 or permit conditions that 1.0 20.0 1.0 120 of production on a global scale. require immediate reporting are also treated as reportable emission events, 100 This growth brings increases in the 8.0 0.8 16.0 0.8 company’s tonnage of GHG and even if they do not meet any other global emissions inventory. However, reportable emission event criteria. 80 6.0 0.6 12.0 0.6 during that same period, Chevron Phillips Chemical has worked to Overall the company experienced 60 improve energy efficiency. The a 454.0 percent reduction in emission 0.4 8.0 0.4 global GHG tonnage and intensity events from 2012 to 2013, with 40 international sites leading the way increased in 2013 as the result of 4.0 0.2 2.0 0.2 20 operational challenges and increased with a 61 percent reduction. This production. The GHG intensity metric reduction brought the total reportable emission0.0 events at all sites to an 0.0 0.0 0.0 0 is the measurement of pounds of CO2 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013

all-timeE low. Global performance in equivalent emissions per pounds of 2 DOMESTIC DOMESTIC DOMESTIC product produced. 2013 exemplifies Chevron Phillips Chemical’s commitment to reducing E/LB PRODUCT

INTERNATIONAL 2 INTERNATIONAL INTERNATIONAL our environmental footprint and it is a NUMBER OF EVENTS MILLION TONS CO LB. CO In the last nine years, U.S. sites have GLOBAL GHG INTENSITY THOUSAND TONS GLOBAL GHG INTENSITY MILLION LBS/PRODUCT incorporated emission controls projects practice that we continue to promote through our Operational Excellence that haveGREENHOUSE reduced emissionsGAS EMISSIONS events AND INTENSITY5 GLOBAL EMISSIONS INVENTORY6 REPORTABLE EMISSION EVENTS7 and led to emission stabilization even System on a global basis. (direct and indirect) (aggregated NOx,SO2, CO, VOC, PM10) though production10.0 is at historically high 1.0 20.0 1.0 120 levels. Our consistent performance is Our guiding principles and Tenets a benchmark we continue to strive for of Operation have helped Chevron 16.0 0.8 100 as we expand8.0 in the U.S. International 0.8Phillips Chemical implement sustainable reductions in the number of reportable emissions overall continue to increase 80 as new construction6.0 is completed and 0.6emission 12.0 events over the company’s 0.6 first operating decade. To help develop facilities begin to operate. Additional 60 international increases in 2013 are a sustainable path forward for the 4.0 0.4next 108.0 years, our environmental best 0.4 due to major plant shutdowns and new 40 plant startups. Minimizing shutdown practice network shares experiences from each4.0 site to capitalize on “lessons0.2 and startup2.0 events is crucial to ensuring 0.2 20 our products are made with optimum learned,” much like the energy best quality in0.0 a safe and efficient manner. 0.0practice 0.0 team. The teams’ initiatives 0.0 0 2009 2010 2011 2012 2013 establish continuity2009 2010 between 2011 2012sites and2013 2009 2010 2011 2012 2013 E 2 encourage continuous improvement DOMESTIC DOMESTIC DOMESTIC in environmental performance on a E/LB PRODUCT INTERNATIONAL global2 level.INTERNATIONAL INTERNATIONAL NUMBER OF EVENTS MILLION TONS CO LB. CO GLOBAL GHG INTENSITY THOUSAND TONS GLOBAL GHG INTENSITY MILLION LBS/PRODUCT CHEVRON PHILLIPS CHEMICAL COMPANY LLC: SUSTAINABILITY REPORT 25 GLOBAL WATER CONSUMPTION FRESH WATER INTAKE8 We are committed to developing The water consumption data presented management practices that conserve are the sum of measured or estimated 18.0 1.0 and protect fresh water resources fresh water intake at all facilities and enhance water efficiency at our worldwide. These data do not take 15.0 0.8 facilities. Fresh water management into account water that is returned and conservation is an important to the source or seawater, which is 12.0 global issue that is critical to the used for cooling at our facilities in 0.6 sustainability of both our business Singapore, Qatar and The Kingdom 9.0 and our communities. Water is a of Saudi Arabia to help preserve 0.4 necessity at all of our manufacturing fresh water resources. Older data 6.0 facilities to generate the steam and was based in large part on estimated cooling water required for the efficient use, whereas more recent years’ 0.2 3.0 manufacture of olefins, polyolefins information is based on improved site- and many other chemical and plastic specific measurement and accounting 0.0 0.0 products. Many Chevron Phillips of fresh water use. 2009 2010 2011 2012 2013 Chemical facilities work with adjacent third-party manufacturing sites to Considering our improved fresh water DOMESTIC ATER INTAKE manage and recycle water for multiple measurements in recent years, total INTERNATIONAL (BILLION GALLONS) FRESH W GLOBAL WATER INTENSITY uses, thus reducing the overall water fresh water usage at international sites (GAL WATER/LB PRODUCT) consumption from offsite sources. has declined slightly and stabilized GLOBAL FWI INTENSITY over the past five years, even as more production capacity is brought online.

CPSC REDUCES SEAWATER CONSUMPTION REDUCING WASTE WATER THROUGH At our CPSC facility in Singapore, our CONTINUOUS IMPROVEMENT team made small changes that resulted At our manufacturing facility in in big reductions. Optimizing the use of La Porte, Texas, reducing industrial our seawater coolers and taking them waste water has been a priority since out of service when additional reactor 2007. By reducing the amount of WATER TRENCHING SYSTEM cooling was not required resulted in fresh water and recycling it into the MAKES BIG DIFFERENCE an 8.9 percent reduction of seawater scrubber tower process, improving Our Performance Pipe facility in consumption compared to 2012. metering, water flow controls and Williamstown, Kentucky, made simple the inspection process, and repairing changes to its plant water trenching water leaks throughout the plant, the system which resulted in a water team was able to reduce waste water usage reduction of 3.8 million gallons, by more than 57 percent from 2007 to a 47 percent improvement compared 2013. That’s equivalent to a reduction to 2012. from 1.06 million gallons a year to 449,000 gallons a year. 26 ADVANCING FORMULAS FOR A SUSTAINABLE FUTURE CHEVRON PHILLIPS CHEMICAL COMPANY LLC: SUSTAINABILITY REPORT 27 RECYCLING & WASTE REDUCTION Chevron Phillips Chemical facilities around the world are finding innovative ways to recycle and lower their environmental footprint.

OPERATION CLEAN SWEEP METAL RECYCLING Our pellet-producing facilities in Collaborating with MetalTek Texas (Cedar Bayou, Pasadena and International, Chevron Phillips Orange) participate in Operation Chemical recovered 83 percent of the Clean Sweep (OCS), a program nickel, chrome and iron from end-of-life sponsored by the American Chemistry furnace tubes at our Cedar Bayou, Port Council and the Society of the Plastics Arthur and Sweeny facilities in 2013. Industry (SPI). Clean Sweep promotes The reclaimed materials are recycled voluntary best management practices into the manufacture of new tubes. to help control the accidental release of plastic pellets into the environment. 2013 RECLAIMED TYPE OF METAL OCS requirements have been added MATERIAL (LBS) into our procurement guidelines Nickel 152,219 and participation in the program is part of our supplier scorecard. Chrome 123,831 Internationally, OCS practices have Iron 116,101 been incorporated in our Operational Excellence System. TOTAL 392,151

28 ADVANCING FORMULAS FOR A SUSTAINABLE FUTURE SOLID WASTE REDUCTION RECYCLING WASTE FOR BIG SAVINGS ACC RESPONSIBLE CARE® Our Performance Pipe facility in Our plant in Sweeny, Texas, initiated ENERGY EFFICIENCY PROGRAM AWARD Brownwood, Texas, recycled 66,948 a demolition project to eliminate a All of our manufacturing facilities pounds of high density polyethylene decommissioned unit that had the strive to be energy efficient through (HDPE) saw shavings, which otherwise potential to become a safety hazard. the implementation of continuous would have been placed in a landfill. Rather than send everything to the improvement processes such as They exceeded their scrap rate goal landfill, the plant team opted to recycle operator involvement, intensive process and set an all-time record for minimum as much as possible. They spent reviews and plant testing. Many sites year-ending scrap on hand for a thousands of man hours preparing have made great strides but our Drilling large diameter pipe facility. Not to the equipment including cutting up Specialties Company in Conroe, Texas, be outdone, our Performance Pipe the larger pieces and safely removing excelled in 2013. Recorded as one plant in Fairfield, Iowa, reduced the mercury and other chemicals from of the plant’s best years for energy scrap generated at that plant in 2013 tanks and drums to meet recycling intensity, the team improved energy by 420,533 pounds (9.5 percent requirements. As a result, hundreds efficiency by 14.4 percent, compared reduction), while at the same time of thousands of dollars were saved in to the 2010-2012 historical average. increasing the amount of scrap being disposal fees. This translates to a reduction in energy sent for recycling by 123,246 pounds use by 21,949 million Btu and CO2 (57 percent increase). emissions by 1,303 tons for the 2013 production basis, garnering the Conroe plant an Exceptional Merit Award for the American Chemistry Council’s Responsible Care® Energy Efficiency program.

CHEVRON PHILLIPS CHEMICAL COMPANY LLC: SUSTAINABILITY REPORT 29 CREATING PRODUCTS THAT IMPROVE LIVES

Chevron Phillips Chemical creates downloadable Safety Data Sheets third tier registration due in 2018. The products and services that make life (SDS) and Product Stewardship implementation of REACH does not better for people around the world. Summaries on our corporate website. stop with the registration of substances; The petrochemicals and polymers this is just a step toward compliance. we produce are essential to the Chevron Phillips Chemical strives to Therefore, continuous efforts on REACH manufacturing of more than 70,000 provide timely information that serves are necessary in order to ensure that consumer and industrial products. to improve public understanding about our chemicals remain compliant in the Whether it’s creating resins that the safety of chemicals and to assure EU market. consume less energy during processing that our chemical products provide or supplying gas odorants that act as their intended benefits while protecting PRODUCTS THAT REDUCE a warning system, our products make human health and the ecosystem. a difference in people’s lives. We actively participate in common ENVIRONMENTAL IMPACT sense advocacy efforts, chemical K-Resin® SBC, alone or in blends testing programs and children’s health with crystal polystyrene, consumes OUR RESPONSIBILITY less energy throughout its life cycle As a matter of policy, we strive to initiatives. when compared to other non-styrenic manufacture, handle, transport and clear resins. This means more parts dispose of our chemical products in We respect our customers’ right to are produced per pound and fewer a safe, secure and environmentally privacy and have internal controls as products go into the waste or recycle responsible manner. In addition, we well as third-party audits to reduce the stream. In fact, K-Resin® SBC boasts a work with our customers, carriers, risk of unintended customer data loss. We have customer service satisfaction 20-30 percent yield advantage over suppliers, distributors and contractors non-styrenic clear resins. to encourage them to comply with our programs in place that ensure rapid safety and environmental requirements response to concerns and complaints. and goals. REACH We comply with applicable federal, Chevron Phillips Chemical remains state and local requirements for vigilant in its effort to comply with product quality and labeling and all aspects of the European Union’s share information on the health, REACH (Registration, Evaluation, safety and environmental impact Authorization and restriction of of our products with customers and Chemicals) regulation. REACH was consumers. All commercial Chevron adopted to improve the protection of Soltrol® isoparaffin solvents carry the Phillips Chemical products follow the human health and the environment Low Vapor Pressure/Volatile Organic requirements for and are assessed by from the risks that can be posed Compounds (VOC) designation in our Operational Excellence System’s by chemicals, while enhancing the the State of California and meet Food product stewardship guidelines. competitiveness of the European Union and Drug Administration regulations This evergreen process focuses on (EU) chemicals industry. To comply for use in animal feeds, defoamers, continuous recognition and reduction with the regulation, companies must pesticides and insecticides for crops of potential health, environment identify and manage the risks linked and livestock, paper for dry food and safety risks. Annual reviews of to the substances they manufacture contact and lubricants with incidental associated hazard communication and market in the EU. They have food contact. documents, transportation options, to demonstrate how the substance customer feedback, regulatory and can be safely used, and they must Marlex® high density polyethylene technical data are also completed by communicate the risk management (HDPE) products are used in rigid every product line. measures to the users. packaging formats that are widely recycled, including milk, detergent, We clearly communicate information REACH Compliance is a multi- oil and pharmaceutical bottles and on potential hazards to the people year process and is designed as a coffee containers. We also produce who use our products or who might registration-phased approach. Chevron polyethylene resins that can be be affected by them both internal and Phillips Chemical has successfully blended with recycled resins. external to our operations. Information registered substances required to be on Chevron Phillips Chemical’s registered in 2010 and 2013 and is products is readily accessible via working toward completion of the

30 ADVANCING FORMULAS FOR A SUSTAINABLE FUTURE TAKING ROOT worm infection and illness. Chevron Reports indicate that each year paper Phillips’ Borger facility is the only companies cut down more than 4 producer in the world for n-propyl billion trees to make their products, mercaptan. and each year those same companies are required to replace every tree. Ethylthioethanol (ETE) is a key Traditional planting methods can ingredient in an anti-diarrheal drug be time consuming so researchers called Tinidazole. Chevron Phillips MarFlex® polyethylene and K-Resin® developed a tree seed spraying system Chemical’s Tessenderlo facility is the SBC are used in flexible packaging to speed up the process but found that only source in the world for ETE. that reduces food waste by extending many seeds quickly washed away. the shelf-life of pre-packaged fresh Marlex® polyethylene geomembrane produce, meats, cheeses and bakery Enter Chevron Phillips Chemical. pond and landfill liners are used to items. Flexible packaging made Adhesive manufacturers developed prevent leaching, water contamination with MarFlex® polyethylene and a unique solution using Chevron and cracking. K-Resin® SBC also provides more Phillips Chemical’s Sulfole® 120 efficient transportation of packaging mercaptan. Using our product as a K-Resin® SBC can to filling sites. As an example, the polymer modifier to create adhesive be used in food use of flexible packaging for pasta properties in the mixture, they were packaging to sauces reduced the number of unfilled able to produce a pre-planting soil retard deterioration package truckloads from 26 for that would secure the seeds and and extend the shelf- unfilled glass jars to one for an equal improve their chance of growth. The life of prepackaged fresh produce. number of unfilled plastic pouches. planting success ratio has significantly In some cases, produce can stay increased with the new composite fresher for up to 20 percent longer, Low viscosity grades of Synfluid® mixture, making it a winning solution or up to 16 days, using K-Resin® SBC polyalphaolefins allow our customers for the environment. packaging technology. Additionally, to produce bio-based aerobically K-Resin® SBC is used in a variety biodegradable lubricants with of medical devices and surgical excellent product properties when instruments. blended with vegetable oils. PAOs also allow formulators to produce Polyanhydride resin (PA-18) acts as energy efficient synthetic engine oils a waterproofing agent in sunscreen with long drain intervals, both of and is gentle enough to be used in which provide environmental benefits children’s formulations. by reducing fuel consumption and PRODUCTS THAT IMPROVE SAFETY ® reducing the amount of waste oil. Scentinel gas MANAGING HEALTH odorants are Millions of people used as stenching around the world agents for natural are diagnosed each gas and propane year with diabetes to provide gas as a result of the users an effective body’s ineffective use and inexpensive warning system for of insulin. Medical leaks in their gas delivery system. researchers are continually looking for ways to help Marlex® high density polyethylene Performance Pipe’s HDPE pipe systems patients manage the risks now to is used in crash barriers during road require significantly less energy improve their health for the future. construction. to fabricate, transport and install Chevron Phillips Chemical is part of than metal or concrete alternatives. that solution. Our 99 percent+ pure Corrosion resistance and long service PRODUCTS THAT IMPROVE HEALTH n-heptane is used as a carrier solvent life along with the energy savings N-propyl mercaptan is an essential in the manufacturing process of many provide an exceptional balance of ingredient in the manufacture of different drugs, including some used economic value and performance. albendazole, an anthelminthic drug to help control blood sugar levels in used to reduce and control intestinal diabetics.

CHEVRON PHILLIPS CHEMICAL COMPANY LLC: SUSTAINABILITY REPORT 31 ENSURING OUR SUPPLY CHAIN REFLECTS OUR VALUES

Chevron Phillips Chemical and its affiliates around the world are committed to ensuring that our supply chain reflects our Operational Excellence System, values and respect for human rights. Our supply chain procurement policies and practices integrate sustainable procurement We respect human rights in our supply criteria that promote the protection chain in the following ways: of the environment and society by • Reserving the right to audit for seeking goods and services that compliance with our values and are resource-efficient, while also respect for human rights balancing quality, availability and • Requiring that suppliers agree to cost considerations. Respect for comply with all laws, including fundamental human rights is integral those pertaining to human rights, to how we conduct business. This is anti-slavery and anti-human why we choose to collaborate with trafficking those who act in an ethical and • Maintaining and enforcing responsible manner. internal accountability for employees, contractors and suppliers regarding compliance with our values and respect for human rights • Facilitating training on our Operational Excellence System, supply chain procurement policies and Code of Conduct, with a particular focus on mitigating risks

32 ADVANCING FORMULAS FOR A SUSTAINABLE FUTURE GROWING OUR WORKFORCE

To grow sustainably, we must recruit, develop and retain the best people. With 400 new jobs coming on line as part of our USGC project and as one-third of our employees become retirement eligible in the next few years, workforce development at Chevron Phillips Chemical is a tall order. In 2013, we implemented a new strategic focus on organizational capability, which has led to a number of initiatives aimed at attracting the next generation of chemical industry employees. We also provided our existing employees with top-notch training to keep their skills sharp, and tools to engage with each other efficiently and respectfully. DIVERSITY & INCLUSION At Chevron Phillips Chemical, we situation. ICARE fosters a culture view diversity and inclusion as more where each person is valued for his or than just gender, country of origin, her distinctive skills, experiences and age or race. Diversity is about the perspectives. blending of experience levels, cultures, talents, competencies and decision- Chevron Phillips Chemical’s diversity making styles. We embrace a culture and inclusion efforts are governed that respects unique differences and by our Executive Diversity Council recognizes the perspectives of all our and promoted by our Diversity CELEBRATING DIVERSITY AT D&I DAY employees. Ambassadors and Local Diversity During the month of May, Chevron Councils. They all work together Phillips Chemical locations across the Throughout 2013, we remained to help promote an inclusive work globe celebrated Global Diversity focused on our efforts to build a environment in which every employee & Inclusion Day. Coinciding with culture around our Diversity & Inclusion has the opportunity to contribute to the United Nations’ World Day for Guiding Principles, which we refer company goals. Cultural Diversity for Dialogue and to collectively as ICARE. The “I” is Development, the event provided for Inclusion which relates to how we Since the launch of ICARE, we have an opportunity for employees and make decisions. We want to ensure made great progress toward ensuring contractors to celebrate how they that every member of the team knows that diversity and inclusion and the apply the ICARE principles and learn that they are valued. The “C” stands foundational Guiding Principles are an about different cultures. Local Diversity for Cooperation or how we work integral part of our culture. One of our Councils set up booths for employees together. We want an environment stated objectives was for 80 percent to visit that offered knowledge, where employees cooperate to get of our global workforce to complete resources, educational and fun results by helping each other succeed. four-hour diversity and inclusion opportunities to engage on all aspects The “A” is for Accountability where training, and we exceeded that goal. of diversity. Many sites also had every individual feels accountable By the end of 2013, 98 percent of our meals locally catered with a variety of for maintaining a positive work employees had participated in the cuisines from around the world. environment for all. “R” stands for training led by their Local Diversity Respect where we treat each other Council members. We also held our with dignity and consideration first Global Diversity Ambassador regardless of differences in culture, meeting, which brought together background and social identity or employees from around the globe to organizational position. “E” stands for receive training, discuss local issues Everyday — these guiding principles and share best practices. would not be effective if we did not implement them every day, in every CHEVRON PHILLIPS CHEMICAL COMPANY LLC: SUSTAINABILITY REPORT 33 LEARNING & DEVELOPMENT Chevron Phillips Chemical provides MASTERING THE “ART OF FEEDBACK” many learning and development As part of the ongoing effort to opportunities through face-to-face enhance our organizational and workshops, conferences and our leadership capability, we recognized online Learning Management System. a need to better equip managers Training opportunities are selected to deliver constructive feedback. based on individual development and That’s why the company designed long-term business objectives. a training course for supervisors, called “Art of Feedback.” Rolled out In 2013, we focused on building in 2013, the course is designed to skills for supervisors and employees, encourage employee development, a improving our performance critical component of preparing our management process and ensuring we people to grow into new roles as their have the resources to support learning colleagues reach retirement. and development for new and existing employees on a long-term basis. Our efforts included: • Introducing a formal mid-year review process with a focus on development planning • Implementing a course for supervisors on providing ongoing positive and developmental feedback to their people • Adding to the roster of professional and technical courses we offer to all employees • Developing a three-year plan to enhance our leadership capability

34 ADVANCING FORMULAS FOR A SUSTAINABLE FUTURE ATTRACTING THE NEXT GENERATION OF WORKERS Four Chevron Phillips Chemical company employees to share industry in pursuing careers in those areas. facilities donated a total of more than expectations and real-life workplace Wharton County Junior College $300,000 in 2013 to Houston-area experiences with the students. received a donation from the Sweeny technical schools and junior colleges Complex to purchase a state-of-the- to purchase laboratory equipment The Port Arthur and Orange plants art laboratory distillation skid for and supplies as well as to fund funded the Lamar Institute of its Process Technology Department. endowments and scholarships. The Technology’s process operations Collaborating with schools in our local Pasadena Plastics Complex donated and instrumentation programs and communities helps us develop local to San Jacinto College and worked awarded 28 scholarships – to be workforce talent in preparation for closely with the school to develop dispersed over a four-year period – to continuing company growth. a mentoring program which allows area high school students interested

KEEPING EMPLOYEES HEALTHY We recognize the need to invest in Chevron Phillips Chemical promotes the wellness of our employees by wellness through targeted programs actively supporting healthy lifestyle such as: choices and work/life balance as well • 100 percent company-paid as continually working to eliminate preventive care for medical plan accidents and injuries. The company’s participants commitment to wellness is instilled • Alere® Quit for Life™ Smoking in employees from day one, and Cessation WELLNESS WINS IN WILLIAMSTOWN reinforced with corporate initiatives • Diabetes America Leaders and employees at and awareness-raising programs that • MyTotalCare Chronic Condition the Performance Pipe plant in keep health, safety and wellness top Assistance Williamstown, Kentucky, are of mind and allow employees to make • Weight Watchers committed to creating an environment better choices outside of work. • MyActiveHealth Wellness Web of health and wellness. In 2013, the Portal facility received the Platinum Status • Employee Assistance Programs Award from the Kentucky State Health • 24-Hour Nurse Lines Department for its efforts to sustain • Fitness Center Discounts worksite wellness strategies long term. • Onsite Flu Shots To maintain its platinum status, the • Onsite Health Fairs plant has a dedicated wellness team, • Onsite Health Testing funding for regular health-related activities like screenings and fairs, and a comprehensive wellness policy.

CHEVRON PHILLIPS CHEMICAL COMPANY LLC: SUSTAINABILITY REPORT 35 POSITIVELY IMPACTING OUR COMMUNITIES

At Chevron Phillips Chemical, we are Our community support and committed to making a long-lasting, involvement objectives include: positive impact in the communities • Preserving and strengthening where we do business. As we move the economy and our economic forward with our sustainable growth system, and encouraging private strategy it is even more imperative enterprise and individual initiative that we continue to strengthen the • Promoting a healthy community relationships we’ve built with our environment – including viable neighbors. That is why the company is civic, cultural, educational, health dedicated to being a good neighbor and human service institutions and and a force for positive change undertakings around the world. We donate funds, • Enhancing international time and resources to worthy causes understanding and cooperation and we encourage our employees to • Assisting colleges and universities do the same. that contribute to the sustainability of the industries we serve • Encouraging educational excellence and promoting a favorable educational environment • Assisting in recruiting well- qualified personnel and encouraging increased student enrollment in science, technology, engineering, mathematics and other disciplines • Sponsoring educational opportunities for students in professional disciplines related to the chemical industry • Promoting basic research related to the various interests of the company and the community

These guidelines cover community investments made to charitable organizations, colleges, universities, education-related organizations and public-service groups.

36 ADVANCING FORMULAS FOR A SUSTAINABLE FUTURE SOCIAL INVESTMENTS COMMUNITY ADVISORY PANELS Since the company’s inception in • Good neighbor outreach efforts PLAY CRITICAL ROLE 2000, Chevron Phillips Chemical including neighborhood clean-ups, At Chevron Phillips Chemical we has invested more than $19 million home repair projects for elderly strive to be a good neighbor in the and countless in-kind contributions of citizens, drives to collect school communities where we do business. equipment and volunteer hours in the supplies, food, toys and blood, All of our U.S. chemical production communities where we live and work. and much more facilities sponsor community advisory In all, we recognize that establishing • Educational outreach programs panels made up of residents and meaningful relationships with our including engineers making companies that are representative neighbors in the communities where presentations in local classrooms of the diverse needs and interests of we operate – both internationally to promote careers in engineering, the various communities. Our plant and domestically – builds trust and math and science, and to foster leadership meets regularly with these goodwill. interest in chemistry as part of panels to engage in dialogue to National Chemistry Week better understand issues of mutual Example social investment projects • Tree plantings to maintain the importance and concern. include: ecosystem and provide natural • Establishment of the Eco lab at the wind barriers Citizen input and perspective has Armand Bayou Nature Center to • Participation in an environmental proven invaluable to the success of teach hands-on science education exhibition in Jubail, Saudi Arabia, our business and has led to changes to children in the Pasadena to increase public awareness of in select processes. For example, at Independent School District sustainable practices our Orange and Port Arthur plants • Donation of money and hundreds • Fundraising for a variety of the community advisory panels have of volunteers to teach the charitable organizations including expressed concerns over flaring and principles of free enterprise to the American Red Cross, Qatar community notification. In response to school children through the Junior Red Crescent, United Way, their concerns, our plants have worked Achievement program Juvenile Diabetes Research diligently to minimize flaring and to Foundation, Jane Phillips Society post notifications on the Southeast and more Texas Alerting Network (STAN) line • Donation of funds to schools for when flaring does occur. computer purchases • Matching corporate donations for major disaster relief efforts

CHEVRON PHILLIPS CHEMICAL COMPANY LLC: SUSTAINABILITY REPORT 37 MOBILE LIBRARY BRINGS EDUCATION IS OUR PRIORITY MOTIVATING STUDENTS TO LEARNING TO STUDENTS At Chevron Phillips Chemical LEARN ABOUT CHEMISTRY As part of our commitment to education is a top priority. Each year Each year during National Chemistry supporting literacy and education, the company offers our employees’ Week in October, Chevron Phillips our Q-Chem facility in Doha, Qatar, dependents a total of 30 scholarships, Chemical volunteers head to their worked with Eid Charity to launch including 25 undergraduate local elementary schools to educate a mobile library aimed at raising scholarships and five graduate students about the role of chemistry awareness of educational, cultural scholarships. Our scholarships are and plastics in their lives. Several of our and health topics. The program, renewable up to three additional years U.S. facilities participate in this program “Kunuz,” targets young students at contingent upon satisfactory academic targeted to fourth and fifth graders. schools and kindergartens throughout performance as a full-time student Qatar. The mobile library program and can be used at any accredited Impacting nearly 2,000 elementary includes workshops, educational university. In 2013, we awarded students, the hands-on experiments games and book distribution. The 30 new scholarships and renewed and demonstrations showcase purpose of the project is not only 77 existing scholarships for a total chemistry in action and how the to encourage youth to read but of $212,000. Since the program’s products and plastics made by also to inspire creativity through the inception in 2001, we have awarded Chevron Phillips Chemical can help promotion of science and arts. $2.37 million in scholarships to 389 improve the quality of life. This year’s deserving students. experiments included erupting dry ice to illustrate the different properties of EMPLOYEES TEACH FIRE SAFETY matter; applying pressure on different Every October, many of our facilities celebrate Fire Prevention Week, a national types of plastics to determine the campaign to educate children about fire safety. At our Cedar Bayou plant in amount of force it takes to break each Baytown, Texas, and our Pasadena Plastics Complex, in Pasadena, Texas, one; and stretching plastic materials members of our emergency response teams visited neighboring schools in the to demonstrate their flexibility. New plants’ fire trucks. They talked to the students about what to do in emergency for 2013 was a polystyrene recycling situations and demonstrated how to use safety equipment. The most exciting part demonstration that explains the of the visits occurred when the kids climbed aboard the fire trucks, sat in the process of recycling. drivers’ seats and pretended to be firefighters.

38 ADVANCING FORMULAS FOR A SUSTAINABLE FUTURE HELPING UNITED WAY MOBILIZE BUILDING HOMES, CHANGING LIVES CARING FOR COMMUNITY THE CARING POWER OF COMMUNITIES Nearly everyone dreams of owning Employees from our S-Chem facility in Partnering with United Way has their own home but not everyone has Jubail, Saudi Arabia, volunteered at resulted in one of our most significant the resources to make it happen. At several community outreach projects investments to date. As one of 10 Chevron Phillips Chemical we believe in 2013, including teaching students Pacesetter companies in Montgomery in doing our part to help deserving about fire safety, planting trees at an County, Texas, home to our corporate people make that dream a reality. elementary school and clearing trash headquarters, we have worked with Partnering with Habitat for Humanity, from a neighboring beach. They also United Way to help our communities our employees and contractors participated in an exhibition at a local for the past 13 years. Over the last spend several weekends every year mall to increase public awareness of five years, our headquarters site has hammering nails, painting, laying how to preserve the environment. raised more than $1.3 million. In 2013, floors, hanging sheetrock and anything our headquarters, all of our chemical else that needs to be done to make a SOCIAL MEDIA EFFORTS EXPANDED manufacturing sites in the U.S. and house a home. In 2013, we expanded our social many of our Performance Pipe sites media efforts to include Facebook, raised $687,205 and volunteered This year, as part of its fiftieth LinkedIn, Twitter and YouTube. hundreds of hours at United Way anniversary celebration, our Cedar Increasing our transparency and agencies. Bayou facility in Baytown, Texas, building closer relationships with was the sole sponsor and financial potential and current employees, donor of our company’s third Habitat media and people living near our for Humanity home. More than 100 facilities, as well as potential suppliers, employees and contractors, along with distributors, customers and other others from the community, completed companies is important to us. Updates construction in record time so that the on job openings, industry progress, family could celebrate the holidays in new products, awards, company their new home. happenings and company-sponsored community events are examples of In 2013, our headquarters facility information found on our various began building a fourth house in social media platforms. Conroe, Texas, scheduled to be completed in 2014. CONNECT WITH US!

CHEVRON PHILLIPS CHEMICAL COMPANY LLC: SUSTAINABILITY REPORT 39 OUR ECONOMIC PERFORMANCE

Chevron Phillips Chemical does not make its financial statements available to the general public. However, summarized financial performance information is provided below.

Selected financial data for Chevron Phillips Chemical, in millions of dollars, is as follows:

SELECT FINANCIAL DATA 2013 2012 2011 Annual Sales and Other Operating Revenues 13,147 13,243 13,867 Net Income 2,743 2,403 1,970 Current Assets 3,141 3,202 2,949 Total Assets 10,533 9,409 8,634 Current Liabilities, excluding debt 1,855 1,989 1,352 Total Liabilities 2,178 2,508 2,806 Equity 8,355 6,901 5,828 Debt-to-Capital Ratio 0% 0% 15%

2014 annual information will be made available on or about following date, and select interim results are disclosed quarterly: 2014 PERIOD TARGETED DATE 12 months February 20, 2015

Chevron Phillips Chemical has received debt ratings from Standard & Poor’s Ratings Services (Standard & Poor’s) and Moody’s Investors Service, Inc. (Moody’s) as follows:

COMPANY COMMERCIAL PAPER LONG-TERM DEBT Standard & Poor's A-2 A- Moody's P-2 A3

General information concerning Chevron Phillips Chemical is available through Dun & Bradstreet under DUNS number 03- 891-2866. Further questions can be addressed to the Treasurer at (832) 813-4100 or by e-mail at: FinancialStatements@ cpchem.com.

40 ADVANCING FORMULAS FOR A SUSTAINABLE FUTURE ABOUT THIS REPORT

Chevron Phillips Chemical’s Corporate on wholly owned operations as well non-governmental organizations, Sustainability Report contains as joint venture operations where academic institutions and individual information on the company’s pursuant to contract, Chevron Phillips students regarding the company’s performance in the following areas: Chemical employees participate in the environment, health and safety and environment, social, safety, product operations and/or management of the social responsibility policies, programs stewardship and financial results. Our facilities. and performance. goal is to communicate our business strategy of sustainable growth and The company’s stakeholders include This report and additional information demonstrate that since the formation employees, customers, suppliers, can be found at www.cpchem.com. of Chevron Phillips Chemical in July owners, contractors, business partners, Questions or comments are welcomed. 2000, the company has had a focus governmental and non-governmental on continuous improvement in all areas organizations, unions, industry RICK WAGNER of its operations. colleagues and the communities Global Sustainability Manager where we operate. Each stakeholder 10001 Six Pines Drive This report reflects Chevron Phillips shapes our business environment and The Woodlands, TX 77380 Chemical’s efforts during the contributes to our success. We strive 1.832.813.4499 2013 calendar year. The previous to be transparent and engage with [email protected] reports reflected Chevron Phillips our stakeholders on their issues of Chemical’s performance during the concern in a manner that is positive FOR GENERAL INQUIRIES: 2011 and 2012 calendar years. and constructive. 832.813.4100 or Report boundaries and measurement 800.231.1212 methods are similar in all reports. Any We also respond throughout the year (Toll free within the U.S.) information, including references to to direct requests from environmental, prior years, is provided for context social and governance research Or a detailed list can be found at only. This report includes information agencies, individual shareholders, http://www.cpchem.com/en-us/ Pages/contactus.aspx. STAKEHOLDER ENGAGEMENT OUTREACH

NGOS Partnerships, EMPLOYEES Voluntary Town Halls, Initiatives, Funding, Surveys, Intranet, COMMUNITIES Various Boards Best Practice Community Advisory and Committees Committees, Panels, Town Halls, of Industry Videos, Direct Mail, News Organizations Newsletters, Media, Website, Social Employee Media, Local Emergency Reviews, Social Planning Committees, Media Rotary Clubs, Chambers of Commerce, Various Boards and Committees SUPPLIERS/CUSTOMERS Business-to-Business Relationships, Face-to-Face Communication, Customer Satisfaction Surveys, Benchmarking, Social Media GOVERNMENTS Consultation, Negotiation, Regulatory Advocacy, Legislative, Voluntary Initiatives, Grassroots INDUSTRY TRADE SECTOR Efforts, Site Visits Trade and Professional Associations, Benchmarking, Working Groups, Conferences, Various Boards and Committees of Industry Organizations

CHEVRON PHILLIPS CHEMICAL COMPANY LLC: SUSTAINABILITY REPORT 41 INDEX TO REPORTING GUIDELINE INDICATORS

This table provides the location to find information reported that completely or partially relates to the indicators from sustainability reporting guidelines published by the Global Reporting Initiative (GRI), version 3.1.

REPORT SECTION GRI CONTEXT REPORT PAGE A Message from our CEO 1.1, 1.2 4 Perspectives from our Global Sustainability Manager 1.2 6 Our Company at a Glance 2.1, 2.3, 2.4, 2.6, 2.7, 2.8 8 Research & Technology 2.5 9 Products 2.2 10-11 Production Facilities 2.5 12 Sales 2.8 12 Leadership 4.1 13 Evolving our Business Strategy to Sustain Growth 4.8 14-15 Driving Operational Excellence 4.12 16 Responsible Care® 4.13 16 Building a Culture of Safety LA7 18-23 Tenets of Operation 4.8 20 Energy Efficiency & Conservation EN3, EN4, EN5, EN26 24 Greenhouse Gas and Global Emissions Management EN16, EN18, EN20 25 Reportable Emissions Events EN23 25 Global Water Consumption EN8, EN26 26 Recycling & Waste Reduction EN10, EN26 28-29 ACC Responsible Care® Energy Efficiency Program Award 2.10 29 Creating Products that Improve Lives PR1, PR3, PR5, PR6, PR8 30-31 Products that Minimize Environmental Impact, Improve Safety and Health EN6, EN26 30-31 Ensuring our Supply Chain Reflects our Values 4.8, HR1, HR2 32 Diversity & Inclusion 4.8, LA13 33 Learning & Development 4.8, LA11 34-35 Keeping Employees Healthy LA8 35 Positively Impacting our Communities 4.8, SO1 36-39 Our Economic Performance 2.8, EC1 40 About this Report 3.1-3.8, 3.11, 4.14, 4.16 41 Index to Reporting Guideline Indicators 3.12 42 Health, Safety, Energy and Environment Data Assumptions 3.9 43

42 ADVANCING FORMULAS FOR A SUSTAINABLE FUTURE HEALTH, SAFETY, ENERGY AND ENVIRONMENT DATA ASSUMPTIONS

Our Operational Excellence System 3PROCESS SAFETY partial equity ownership, the reported incorporates a “Plan-Do-Check-Act” Model The graph shows a 63 percent decrease emissions and production data represent to achieve continuous improvement. It in the 2013 PSER compared to the the equity stake. requires that each facility and product previous three years. It represents the 6 line be formally audited by our corporate number of Tier 1 and Tier 2 Process GLOBAL EMISSIONS INVENTORY environmental, health, safety and security Safety Events (PSEs) divided by work The Global Emissions Inventory graph department and fulfills the requirements hours of employees and contractors. includes the total aggregated criteria of the American Chemistry Council Chevron Phillips Chemical currently ® pollutants (NOx, SO2, CO, VOC, PM10) Responsible Care Management System. captures Process Safety Management emitted in 2013 from each of the plants The Operational Excellence System reduces (PSM) event rate data consistent with grouped by location. The data only includes operating risks and promotes regulatory the industry recognized API 754 permitted emissions from each source compliance. Our Operational Excellence Recommended Practice at 16 sites collected from the Emissions Inventory (EI). program provides the framework that worldwide. A Tier 1 PSE represents the For plants that Chevron Phillips Chemical supports the development and quality of highest level of PSEs captured and is has partial equity ownership, the reported data found in this report. defined as “a loss of primary containment emissions and production data represent with the greatest consequence” by an the equity stake. Notes to Pages:18-19, 21, 24-26 industry-recognized standard. A Tier 2 1 PSE is the next level of PSEs captured 7REPORTABLE EMISSIONS EVENTS SAFETY PERFORMANCE GRAPHS and is defined as “a loss of primary The graph depicts Chevron Phillips The Reportable Emission Events graph containment with lesser consequence.” Chemical’s continual improvement in safety. provides data on the number of total reportable emission events by year. All We follow U.S. Occupational Health and 4 Safety Administration (OSHA) guidelines ENERGY INTENSITY INDEX GRAPH reportable emission events are reported for injury classification and reporting at all The Energy Intensity Index graph reflects based on specific country, state or local of our facilities around the globe. In this improvements in energy efficiency at our regulations. A reportable emission event system, a recordable injury is defined as manufacturing sites in the U.S. Chevron includes air, water or land releases above an injury requiring treatment beyond first Phillips Chemical tracks the energy the Reportable Quantity (RQ), exceedance aid and the yearly rate is measured as consumed from fuels as a by-product and of a water discharge limit (permit and the number per 200,000 hours worked the energy purchased and consumed regulatory), and emission events as defined (approximately 100 people). Chevron (purchased fuel, electricity and steam). The in local regulations or permit conditions Phillips Chemical has experienced a 26 compilation of our energy consumption that require immediate agency reporting. percent reduction in the Employee Total data is consistent with the methods used All normal process reportable emission Recordable Incident Rate (TRIR) in the by American Chemistry Council for the events are included in addition to those last four years compared with the 2007- ACC Energy Efficiency and Greenhouse resulting from activities such as startup 2009 period. The Major Capital Project Gas Annual Survey. Because Chevron from new construction and events beyond Contractor TRIR has decreased 26 percent Phillips Chemical is a diversified chemical facility control (weather, power and feed over the last year. company operating a variety of process interruptions, etc.). plants, the company monitors energy 2 reduction progress using an Energy 8FRESH WATER INTAKE ACC GRAPH Intensity Index that establishes a baseline The safety performances of the Chevron The Fresh Water Intake graph includes the expected energy consumption per pound Phillips Chemical Employee workforce total water intake – in billion gallons – for of product for each unit. The baseline and American Chemistry Council (ACC) each of the plants grouped by location. was established in 2008 and used the Peer Member Companies are compared The Fresh Water Intake (FWI) data include comparison point for each subsequent in the graph. Chevron Phillips Chemical fresh water brought in for process uses such year. The Energy Intensity Index is a ratio has been ranked in the top quartile among as steam generation, purchased steam, of the actual energy consumed over an ACC Peer Member Companies since cooling tower water, potable water and expected baseline energy number. 2012. In 2010, Chevron Phillips Chemical others. The data does not include water that is brought in but immediately transferred ranked in the top 10 percent of ACC 5 Peer Member Companies. The ACC Peer GREENHOUSE GAS to another facility located onsite and not Member Companies represent companies The CO2e Emissions graph includes the owned or operated by Chevron Phillips that have worked a minimum of 2 million net total emissions of greenhouse gases Chemical. The data also does not include employee and contractors hours collectively (GHG) expressed as tons of CO2 equivalent seawater. The Global FWI Intensity is a in a given year in the U.S. Ten Chevron (CO2e) summed separately for the domestic ratio of the fresh water intake (gallons of Phillips Chemical facilities report metrics and international plants. The Global GHG water) over the products produced (pounds data to ACC annually: Bartlesville, Borger, Intensity is a ratio of the greenhouse gases of product). For plants that Chevron Phillips Cedar Bayou, Conroe, Kingwood, Orange, emitted (pounds of CO2e) over the products Chemical has only partial equity ownership, Port Arthur, Pasadena, Sweeny and The produced (pounds of product). For plants the reported water intake and production Woodlands (headquarters). that Chevron Phillips Chemical has only data represent the equity stake. CHEVRON PHILLIPS CHEMICAL COMPANY LLC: SUSTAINABILITY REPORT 43 WWW.CPCHEM.COM