Over the past year, CPChem has embraced the dynamism of an industry in transition. Reflecting on our challenges and achievements in 2023, we are equipped and driven to hold our station as a leading chemical company with a reputation for safe and reliable operations.
I stepped into the role of President and CEO in March 2024 after my colleague, Bruce Chinn, announced his well-earned retirement. On behalf of CPChem, I would like to thank Bruce for his leadership and engagement throughout an impressive career of 40-plus years in the energy and chemicals industries. We wish him well.
Drawing on experiences as part of CPChem’s Executive Leadership Team and more than three decades in the chemical industry, I feel fortunate and prepared to steer CPChem toward the many opportunities laid on our horizon.
A Bedrock of Safety
In 2023, CPChem delivered on its commitment to safety yet again. The care that employees exhibit for each other propels a culture of safety, which I believe is directly connected to CPChem’s award winning safety performance, recognized in 2023 by organizations like American Fuel and Petrochemical Manufacturers, American Chemistry Council and Texas Chemistry Council. Further, an unbroken emphasis on internal programs like Our Journey to Zero evidence why CPChem sits within the top 10% of the industry for Total Recordable Incidence Rates.
Elevated and Equipped
Last year, two of our major growth projects celebrated significant developments. In March 2023, we broke ground on the Golden Triangle Polymers facility, a joint venture between Chevron Phillips Chemical and an indirect subsidiary of QatarEnergy. In October, we finalized financing for a joint venture project with QatarEnergy that will bring a $6 billion integrated polymers facility to Ras Laffan Industrial City, Qatar.
Within our ranks, employees thrive. CPChem’s longstanding ICARE program continues to bear fruit on our DE&I journey, empowering employees and employee resource groups to act as agents of change and bring their authentic selves to work. We are proud that efforts to create a diverse and inclusive workplace have gained purchase, and we are honored by acknowledgments from Forbes and Newsweek with placements in groups like World’s Best Employers, Best Employer’s for Diversity, America’s Greatest Workplaces for Parents and Families, and others.
In 2023, we paid special attention to elevating our organization’s awareness and approach to sustainability. Through an enterprise-wide movement, we set aside time for every CPChem employee to engage with the Sustainability + Me Development Series. Shaped by CPChem’s sustainability strategy, this program employs real-world examples and open discussions to establish connections between sustainability and all roles within the company.
Sustainability at CPChem
Leveraging innovation, technology and a workforce driven to effect positive change, we experienced notable achievements in all three of the organization’s sustainability focus areas: Climate Change, Product Sustainability and Circularity, and Social Responsibility. Within these successes, we discovered an inspiring collection of stories featuring standout employees and their extraordinary contributions. To recognize and encourage exceptional efforts to advance sustainability, CPChem introduced and proudly presented an inaugural group of employees with its new commendation, the Sustainability Inspiration Award.
Sustainability Focus Areas
Climate Change
During 2023, we continued our pursuit of CPChem’s 2030 aspirational goal to reduce its carbon intensity by 15% compared to a 2020 baseline. In the last year, CPChem teams completed intensive marginal abatement cost curve assessments at five CPChem facilities. We are using this critical process to develop site-specific strategies to reduce emissions and optimize energy efficiencies. Additionally in 2023, CPChem advanced initiatives dedicated to exploring renewable energy and uncovering opportunities to further the industry’s transition to a lower carbon future.
How we address Climate Change
Product Sustainability and Circularity
Since our last report, we have directed considerable resources to enhance circularity and enable a circular economy for plastics. Sales teams reported a significant increase in sales of Marlex® Anew™ Circular Polyethylene in 2023, and the company added two locations to its collection of facilities that have earned the International Sustainability & Carbon Certification PLUS distinction. Every day, CPChem intends to be the supplier of choice by offering our customers quality products and services delivered reliably. We are also investing time, talent and resources to enable our portfolio of products and solutions to be even more sustainable through a determined focus on circularity.
How we address Product Sustainability and Circularity
Social Responsibility
Around the world, companies are responding to the public’s emerging interest in corporate social responsibility practices. I am pleased to share that we have been active and immersed in this space for years. From bringing clean water infrastructure to a remote town in Peru, to greatly increasing our support of diverse suppliers, to embracing the United Nations Sustainable Development Goals, this report contains many great stories of positive impact from 2023. I encourage you to spend a few moments learning how we care for communities locally and abroad.
How we address Social ResponsibilityPlease enjoy our 2023 sustainability report, Stepping Up.
Thank you,
Steve Prusak
President & Chief Executive Officer
