Presentation to the Parliamentary
Portfolio Committee on Energy &
Select Committee on Economic
Development
Public Hearing on the Liquid Fuels Charter
14 – 15 September 2010
© Chevron 2005
Introduction
Our purpose today is to clearly communicate
Chevron South Africa (Pty) Limited’s (CSA)
unequivocal commitment to contributing to
South Africa’s socio-economic transformation as
we believe this is in the best interests of all of
our stakeholders.
© Chevron 2005
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Chevron’s Vision & Values
 Vision
 To be the global energy company most admired for its
people, partnership, and performance.
 Values
 We conduct our business in a socially responsible and
ethical manner
 We respect the law, support universal human rights,
protect the environment, and benefit communities where
we work
Integrity
Ingenuity
Trust
Protecting People and the Environment
Diversity
High Performance
Partnership
© Chevron 2005
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Chevron SA’s Integrated BEE Strategy
CSA’s strategic model incorporates the seven pillars of the Codes of
Good Practice and covers the principles of the Liquid Fuels Charter:

Ownership / Equity

Management & Control

Employment Equity (EE)

Skills Development

Enterprise Development (partnering)

Procurement

Corporate Social Investment (CSI)
Monitoring
Consultation
Considerable progress has been
made in meeting the specific tactical
plans/targets in all of the seven
processes as evidenced by the results
of the audit completed by Empowerdex
in November 2009
© Chevron 2005
Strategic
Alignment
Communication
CSI
4
Ownership / Equity
© Chevron 2005
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CSA’s BEE Equity Transaction
Signing Ceremony – 2 December 2002
© Chevron 2005
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CSA’s BEE Equity Transaction
 Deal effective from 1 January 2002
 Involved 25% of the equity of Chevron South Africa (Pty) Limited, the
company that owns and controls the full value chain of South
African assets and businesses (i.e. includes supply, refining,
marketing, lubricants, aviation, business support, etc.)
 BEE partners consist of a broad-based consortium of BEE
shareholders and beneficiaries
 African Legend: a pioneering BEE business, will play anchor shareholder




role in consortium
SANTACO: representative of national taxi industry stakeholders
Lithemba: organisation of black women entrepreneurs with existing
interests and capacity in oil industry
Ditikeni: (beneficial interest only) an organisation benefiting a broad
base of NGOs involved in serving capacity-building community groups
CSA Employee Participation Plan, benefits all employees equally
 BEE shareholders have
 25% equity interest in CSA
 Proportional representation on the Board of Directors
 Full 25% dividend rights
© Chevron 2005
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CSA BBBEE Rating
November 2009
© Chevron 2005
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Liquid Fuels Charter & BBBEE Codes of
Good Practice
 The criteria of the Broad Based Black Economic Empowerment
Codes of Good Practice serve as an objective measurement of
performance against the transformation objectives of the LFC.
 Chevron’s performance against the BBBEE Codes, as
measured by a major independent rating agency is detailed in
the following slides.
© Chevron 2005
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CSA – A Level Four Contributor
© Chevron 2005
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Current Status and way forward
 The 2009 BBBEE audit based on 2008 data has resulted in a 13 point (18.4%)
improvement on the 2008 audit to Level 4
 Significant improvements in the Final Evaluation Report include
 Score from 57.04 to 69.92
 Rating from BBB to A
 Contribution level from Level 5 to Level 4
 Procurement Recognition Level from 80% to 100%
 Areas of improvement were
 Employment Equity – from 8.03 points to 9.07 points out of 15
 Skills Development – from 5.02 points to 9.03 points out of 15
 Preferential Procurement – from 10.60 point to 15.39 points out of 20
 Enterprise Development – from 10.91 points to 15.00 points out of 15
 Our points score would place us in position 17 on the Financial Times – Empowerdex
survey of all listed JSE companies (41 last year)
 We are continuing to identify gaps in performance, systems and data capture and to
implement fixes.
 We are currently working towards concluding our 2010 audit, based on 2009
performance and expect to see further improvements
© Chevron 2005
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Employment Equity progress
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Initiatives for further improvement
To enable continuous improvement in our performance a number of
initiatives have been implemented including:
 Creating a supportive culture

Mentoring & Skills Development programmes to develop and maintain a
pipeline of HDSA talent particularly focused on black women and black
men to improve BEE management control and EE performance
 Skills development programmes include;
© Chevron 2005

Leadership in Oil & Energy Learnership -11 Chevron employees graduated
with 2 earning a place in top 3

Refinery Artisan Learnership Programme in Electrical, Welding, Boiler
making and Fitting skills – 195 trained during 2007 - 2009

Professional Driver’s Learnership

Disability Learnership project currently offering 8 learners with disabilities
the opportunity to acquire real-life business management skills and a
higher level of job experience. Training to NQF5 level providing “real jobs,
real people”

Fleet Coordinators Learnership

ABET 4 / NQF 1 Certificate in Business Practice

Computer skills

Trainee mechanics
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Initiatives for further improvement
(cont)
 Preferential Procurement

Development of 100% black men and women owned suppliers
 The Chevron Refinery has developed a 100% black women owned
pipe and fittings business partner and a 100% black owned metals
reclamation business partner
 Enterprise Development

Branded Marketer programme provides exceptional opportunity for BEE
participants to market the Chevron Brand in a defined geographical area
through Retail outlets.

Distributor programme - 35% are 100% BEE with the balance are either
BEE compliant or have plans in place.
 Socio-Economic Development

Participation in numerous projects for community development , education
and health including;
 Major contribution through the Global Fund to HIV/AIDS projects in
Western Cape
 Du Noon home-based care and meals to HIV/AIDS sufferers
 Major contributor to the Desmond Tutu Foundation projects
© Chevron 2005
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Conclusion
In conclusion;
 Chevron has embraced the spirit and letter of the Liquid Fuels charter
and its transformation objectives
 Transformation is a continuous journey and Chevron’s programmes
and strategies will continue to make significant progress in
contributing to Government’s objectives towards providing economic
and social upliftment of previously disadvantaged South Africans
 Chevron thanks the Committee for the opportunity to present to you
today
© Chevron 2005
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