Organization Name:
Chevron
Organization Website:
Region:
Social Issue:
Level of Shared Value:
Initiative/ Project Description:

Chevron’s collaborative venture (with the United States Agency for International Development (USAID), the  Department for International Development (DFID), and others) aims to enable economic growth in the nine oil-producing states in the Niger Delta. Using a data-driven approach, PIND has identified several potential growth industries for the region and is also looking for opportunities to build linkages to Chevron’s supply chain.

Chevron has operated in the Niger Delta for more than 50 years and, despite heavy investment in community and societal issues, the company had long faced significant business costs related to oil theft, work stoppages, and high security needs. Past efforts mostly addressed immediate community needs but failed to tackle the underlying causes of the region’s high poverty rates and limited economic opportunity. In 2010, Chevron decided to take a different approach and brought together government and development stakeholders to create the Niger Delta Partnership Initiative (NDPI) and the Foundation for Partnership Initiatives in the Niger Delta (PIND). NDPI engages a network of international partners to increase donor interest in the region. Meanwhile, PIND, which serves as NDPI’s local presence in Nigeria, operates two economic development centers in the Niger Delta and oversees the program implementation, partner engagement, and research. Together with USAID, DFID, and others, Chevron committed to invest more than $100 million over five years (with Chevron committing $50 million) to enable economic growth in the nine oil-producing states in the Delta. By investing in the region’s long-term prosperity, Chevron took a fundamentally different approach to typical social investments. According to Dennis Flemming, Executive Director of NDPI, “we’re there to take a long-term approach, linked to the company but with the arm’s length independence to focus solely on reducing the instability in the region and making it a better place for the company to do business.”[1]

To build prosperity in the region and improve its operating environment, PIND uses a data-driven approach to identify new market opportunities and local solutions to unemployment in the region and aims to share those solutions with other partners. PIND began by assessing trends and current expenditures in Chevron’s supply chain to identify promising opportunities to generate jobs and income.

That analysis led PIND to conclude that creating a measurable impact in the near term would require enterprise and market growth outside of Chevron’s direct supply chain. After additional value chain analyses, the PIND team identified palm oil, poultry, cassava, and catfish as promising markets for growth within the Delta. PIND is also now exploring opportunities to create new markets for those products while linking programs back to Chevron’s business by seeking connections to Chevron’s supply chain. It is further aiming to set standards for other companies and development agencies to adopt going forward.[2]

 

[1] Flemming, Dennis, interview by FSG. Executive Director, Niger Delta Partnership Initiative (2014).

[2] Ibid.

Social Results:

Development of economic opportunities outside of direct oil and gas supply chains

Business Results:

Reduction in business disruptions due to greater economic opportunities outside of oil and gas; potential reductions in supply chain costs

Comments

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