PGPA Internal Communications 5/22/07 © Chevron Corporation 2007 Ernesto De La Torre External program overview March, 2008 HIV/AIDS: Global Policy & Training

PGPA Internal Communications 5/22/07© Chevron Corporation 2007

Ernesto De La Torre

External program overviewMarch, 2008

HIV/AIDS: Global Policy & Training Program


Global HIV/AIDS Policy & Training

Business Case

3PGPA Internal Communications© Chevron Corporation 2007

The Global Impact of HIV

Sub-Saharan Africa Nowhere is the impact of

HIV/AIDS currently more apparent than in sub-Saharan Africa

Chevron is the largest U.S.-based investor in sub-Saharan Africa

Trends in HIV Prevalence

Age Impact HIV primarily strikes people

in the 20-40 year-old age group

HIV threatens to reverse positive economic and developmental strides made over the past decade.

At Risk Populations

China and India are showing the fastest increases in HIV prevalence in the world

India currently has the second largest number of citizens living with HIV

Women represent more than half of those living with HIV

Girls in high prevalence countries are more likely to be HIV+ than male counterparts


The Business Case

Economic Impacts Benefits Payments Insurance Premiums Market Impacts on Wage Rates Market Impacts on Insurance Premiums

Employee Safety

Workforce Reduced On-the-Job Productivity Increased Absenteeism Supervisory Time Vacancies Recruitment and Training

HIV exposure risk increases in countries that have: High HIV prevalence rates A mobile CVX workforce, An emerging HIV epidemic.


Corporate Responsibility

Corporate responsibility addresses the key issues that affect our employees and the communities where we operate.

We believe multinational companies are important in the global effort to fight HIV and other infectious diseases.

Helping to combat HIV/AIDS is one of the clearest examples of how long-term business interests and commitment to corporate responsibility are intrinsically linked.


Global HIV/AIDS Policy & Training

Development & Implementation


Best Practices

A systematic needs assessment for HIV/AIDS

A company-wide HIV/AIDS policy

Awareness and prevention programs

Voluntary counseling and testing

(confidentiality maintained)

Anti-retroviral treatment and support for

employees and dependents

Partnerships with local community resources,

government and private sector groups

World-Class Corporate HIV/AIDS Programs include the following:


Key Implementation Steps

Conduct Situation Analysis

Develop a Timeline

Gain Support

Assemble Resources

Conduct Management Team Training

Initiate Communications and Conduct Initial Assessment

Secure Access for Benefits, Testing and Treatment

Conduct Prevention, Education and Awareness Training

Monitor Implementation


What Is It and Why Is It Important?

The purpose of assessing the situation is to:

Understand the gaps between the health threat posed by HIV/AIDS and current resources available for education, counseling, testing and treatment;

Assess HIV/AIDS treatment needs and resources in the country/region/work location;

Identify specific implementation areas needing attention to ensure resources are put to best use in each work site location.

Process:

Gather data already available

Estimate HIV incidence and HIV/AIDS prevalence rates for country

Identify on-site/local medical facilities required for VCT, care, and treatment

Identify potential external partners for policy implementation

Record any assumptions that had to be made because of data limitations

Analyze data and draw conclusions

Set priorities for developing the work location action plan

Global Situation Analysis


Conducted Survey of Chevron Business Units

Assessed the impact of HIV/AIDS on workforces and

communities

Documented existing HIV/AIDS program activities

Documented current treatment benefits & treatment

infrastructure

Documented partnerships with local/national

organizations

Identified expert opinions about expanding the

provision of treatment benefits




FINDINGS:

Scope: 116 countries

Population: 58,000+ employees

HIV Prevalence Rates:

15 countries with prevalence rate of 5% or higher

11 countries with prevalence rate between 2 and 5%

75 countries with prevalence rate of less than 2%

15 countries with unknown prevalence rate

Population Potentially Living with HIV*:

~800 employees

~2900 dependants

* Data from using WHO prevalence rates and US situation analysis data


Corporate Policy 260 - HIV/AIDS

Scope: This policy applies to all Chevron employees worldwide.

Non-discrimination:

Employees with HIV/AIDS are fully protected by the Company’s existing harassment and discrimination policies.

Pre-Employment HIV Testing:

The Company will not conduct pre-employment HIV testing except as required by national and/or local laws.

If pre-employment HIV testing is required by national or local laws, employment decisions will not be based on the results of the HIV testing.

Applicants will not be asked about their HIV status when applying for a job.

Employment Benefits:

Employees who become ill with HIV/AIDS will be treated like any other employee with a life-threatening illness.

Employee illness will be administered under the terms of the rules of their respective benefit plans.


Corporate Policy 260 - HIV/AIDS

Confidentiality:

Confidentiality regarding the HIV/AIDS status of an employee shall be maintained at all times consistent with Company policies as described in the Business Conduct and Ethics Manual.

Treatment and Support:

The Company’s intent and long term goal is to secure treatment for employees and covered dependents, in the presence of accepted medical practice, appropriate medical expertise and infrastructure, pharmaceutical logistics, and national laws in their country or region of employment.

Partnerships:

The Company will strive to engage and work with national and local governments, public and non-governmental organizations, and multilateral agencies to deploy best practices in the prevention, care, treatment and support of HIV/AIDS in areas where the Company operates.

Workplace and Community Programs:

Consistent with need, workplace and community programs of education, awareness, prevention and treatment will be promoted in areas where the Company operates.


Knowledge, Attitudes & PracticesBaseline Survey Summary

A total of 30,644 employees in 116 countries received the Baseline KAP. 12,612 participated – a 41% response rate.

55% of employees state they are aware of Chevron’s HIV/AIDS Policy.

Stated knowledge of HIV/AIDS is good. A majority of employees across the globe feel they are very or somewhat knowledgeable about HIV/AIDS (81%).

About 20% of employees stated that they have received HIV/AIDS training. (some may have received training from other sources)

Based on information gathered from the Baseline KAP we revised our instructor led training to better address

gaps.


HIV/AIDS Prevention & Awareness Training

A phased implementation approach was applied as a result of recognizing country prevalence rates, population size, and resource restrictions.

Managers training:

Length of training: Mandatory manager/supervisor training is 2 hours

Initial deployment: Training was deployed in three phases prior to employee training.

Formats: Computer Based Training (CBT) and instructor-led training for workgroups.

Frequency: Condensed refresher training required every two years.

Employee training:

Length of training: Voluntary employee training is 60 minutes

How: Instructor-led & Computer Based Training (CBT)

Formats: Computer Based Training (CBT) and instructor-led training for workgroups.


MANAGERS EMPLOYEES TOTAL

Africa 1477 4168 5645

Asia Pacific 2449 4162 6611

Europe 531 434 965

Latin America 1203 2255 3458

North America 1934 2330 4264

Global Total 7,664 13,506 21,170

Training Status

As of February 29, 2008

HIV/AIDS Prevention & Awareness Training


HIV/AIDS Policy Implementation Cost Estimate

HIV/AIDS intervention programs are a social responsibility and an investment in our Company’s future business growth.

Annualized cost assumptions*

Employee Education ($ 20/ee)

Voluntary Counseling and Testing ($ 30/ee + dep)

Treatment ($1100/treated person).

Treatment costs include the cost of ARV medication and the cost of healthcare delivery system infrastructure which includes training, staff expertise and medical equipment.

(*Global averages, based on WHO statistics & CVX situation analysis)


Partnerships

• We currently have developed partnerships with 75 NGOs (including Positive Action as Work, Kitzpositive, Malaysian AIDS Foundation, CARE Cambodia, Thailand Business Coalition on AIDS, SMARTWork Vietnam, UNICEF, Australian Red Cross, Sociedade Viva Cazuza, Action SIDA Martinique, SF AIDS Foundation, Shanti and many others).

• We have partnered and are partnering with almost 30 Corporations in Africa, Latin America, Asia Pacific and North America (including Standard Bank, British American Tobacco, Shell, SAB Miller, De Beers, Anglo, Kraft, IBM and Procter & Gamble among others).

• We are part of a consortium of corporations through the Harvard Kennedy School for Business and Government/CSR Initiative , including General Motors, Coca-Cola, Abbott Laboratories, Pfizer, Bristol Meyers Squibb.

• We have been working in partnership with Pangaea Global AIDS Foundation to develop the Manager and Employee Training as well as Testing and Treatment Guidelines for Chevron’s Global Physicians.

• In addition, we partner with the Global Business Coalition on HIV/AIDS as well as the Corporate Council on Africa HIV/AIDS Working Group


Appendix

Supporting material

GBC material


Partners (partial list)

Global Business Coalition (including Transatlantic Partners Against AIDS)

Populations Services International

Pangaea Global AIDS Foundation/San Francisco AIDS Foundation

UNAIDS & UNDP

Coca Cola

Desmond Tutu HIV Foundation (South Africa)

Thailand Business Coalition on AIDS (South East Asia)

Family Health International (South East Asia)

PeopleManagement (Southern Africa)

SmartWorks (Vietnam)

ADIRA (Southern Africa)


Implementation Process

TimingImplementation Step

(minimum requirements to meet policy expectations)

Business Unit Actions

(for local/regional coordinator)

2005

Conduct Situation Analysis Understand HIV/AIDS treatment needs and resources in the country or region.

Develop a Timeline of Key Milestones Identify key milestones and timing for local action & communication plan (coordinate geographically).

2006

Gain Support Engage local senior management team, including HR, Medical, HES, PG&PA and unions (as needed).

Assemble Resources Establish local HIV/AIDS implementation team (coordinate geographically) and peer educators (if needed).

Conduct Initial Assessment and Initiate Communications

Establish a baseline of employee knowledge, attitudes & practices for monitoring the program. Execute initial communications.

2006 – 2007

Conduct Management Team Training Conduct mandatory training for management teams

(and supervisors, as determined by Opco/Business Unit).

Secure Access for Benefits, Testing and Treatment

Determine access to benefits. If not already available, establish procedures for pre-test counseling, testing and post-test counseling. If not already available, establish procedures for treatment.

Conduct Prevention, Education and Awareness Training

Train employees (voluntary).

2007 & Beyond

Monitor Implementation Measure the impact of implementation: collect participation data, assess vendor performance, and re-check employee knowledge, attitudes & practices.

Oversee Ongoing Responsibilities Execute ongoing local communications, as appropriate, ensure sustained policy awareness, and participate in best practice sharing.


• Market Impacts on Wage Rates

• Market Impacts on Insurance Premiums

• Physical Security

Direct Costs Indirect Costs

• Reduced On-the-Job Productivity

• Increased Absenteeism• Supervisory Time• Vacancies

• Management Burden• Production Disruptions• Loss of Workforce Morale, Cohesion, Experience

• Labor Disputes

Total Cost to Business with HIV/AIDS in the Workforce

• Benefits Payments• Insurance Premiums• Recruitment and Training

• Accidents

From an Individual Employee with HIV/AIDS

From High HIV/AIDS Rates in the Workforce and Society

What’s the Bottom Line?


The Impact of AIDS on Business


Risk factors in the Workplace


96% of consumers surveyed feel that AIDS is a serious issue.

71% of individuals surveyed believe that companies should be “actively” involved in fighting AIDS.

67% of consumers surveyed would pay more for a brand “if they knew that the extra money was going specifically to a program to fight AIDS.”

GBC Survey:US Consumer Attitudes towards Business and AIDS

Survey Results:

Public Opinion


Corporate Responsibility

Through business operations, companies impact

communities – for heavy industries:

•Increase in economic activity, employment and

construction (in remote locations)

•Migrant workforce, social disruption, altered

population dynamics (new production facilities,

refineries etc.)

•Transport of goods and materials (trucking routes)

Documents

PGPA Internal Communications 5/22/07 © Chevron Corporation 2007 Ernesto De La Torre External program overview March, 2008 HIV/AIDS: Global Policy & Training