Conoco Declares Commitment to Sustainable Growth.

Business/Energy Editors

HOUSTON--(BUSINESS WIRE)--May 8, 2001

Conoco (NYSE:COCA) (NYSE:COCB) today issued its first sustainable growth report to show how the company creates value for shareholders while maintaining respect for environmental and social considerations.

The report, "Conoco Sustainable Growth Report -- A Look at Our Progress, May 2001," documents Conoco's successes, takes a look at areas in need of improvement and outlines the company's commitment to sustainable growth.

Conoco said the document is a major step in the company's journey toward transparency and includes a record of its global environmental and safety performance and sustainable development goals for 2001. Sustainable development calls for development that meets the needs of the present, without compromising the ability of future generations to meet their own needs.

"Strong financial performance is a prerequisite of sustainable growth," said Conoco Chairman and CEO Archie W. Dunham. "Without excellent earnings and cash flow, we would not be able to attract shareholders or employees to Conoco. In turn, we would not be able to contribute to the economic vitality of the communities where we operate. We recognize that our reputation and relationships with those communities are among the company's most valued assets and key to our sustainable growth."

Dunham said sustainable companies create value for shareholders by prudently managing risk and embracing opportunities to create innovative products and technologies that will help all people meet the daunting challenge of sustainability.

In the report, he addresses a sensitive question directly: "Can an energy company help create a more sustainable future for our planet and its people?" Dunham said: "I believe it must."

Dunham said the global energy industry is entering a period of transition toward sustainability, but that the transformation would be gradual. "In the near term, we must focus our efforts on developing more efficient ways of finding, producing and processing the huge volumes of oil and natural gas required for fueling global economic growth and social progress -- in ways that will not have an adverse impact on the environment."

Conoco says it has been guided by the basic tenets of sustainability for decades, as demonstrated by its commitment to core values of excellence in safety and occupational health, environmental stewardship, valuing all people and conducting business in an ethical manner. Based on its achievements, Conoco was selected as a member of the Dow Jones Sustainability Group Index in 2000. Further, the company has been ranked first in safety in the U.S. in 16 of the past 22 years, according to data published by the American Petroleum Institute (API).

"We gathered data from our worldwide businesses, which allowed us to assess the broad impact of our operations on the environment and to measure our progress toward improving sustainability performance," said Pogo Davis, Conoco's manager of sustainable development.

"Our businesses increasingly use these measures for benchmarking performance and for business planning and decision-making," said Davis, who also serves as Conoco's liaison delegate to the World Business Council for Sustainable Development. "We do not have all the answers and recognize that substantial challenges exist in our quest to become a more sustainable company."

Dunham said that Conoco would finalize its Sustainable Development Policy in 2001, incorporating positions on climate change and human rights. In addition, all significant operations will begin the process toward local sustainability reporting that will provide a deeper, and more meaningful, view into the company's relationships with the communities where it operates. Future sustainable growth reports will include an update on performance versus the company's commitments.

Conoco's report displays metrics to give a balanced picture of the company's performance. Areas of note include:

-- Safety performance -- The U.S. petroleum industry, according to data
published by the API, was nearly four times safer than the average of many
other industries and business sectors, as reported in 1999 by the U.S. Bureau
of Labor Statistics. Conoco was safer still, with a total recordable rate lower
-- by 12 times -- than the average for all private industries.

-- Downstream emissions -- Conoco has been tracking emissions of various
substances at its refineries worldwide since 1993, and performance has improved
consistently. For example, on the basis of total amounts of wastes and
emissions per refined barrel of product, Conoco's five operated refineries have
continually reduced per-barrel wastes and emissions, achieving a 47 percent
reduction since the company began measuring emissions in 1993.

-- Upstream emissions -- For the first time, Conoco reports exploration and
production wastes and emissions, including carbon dioxide. The years 1999 and
2000 are the first for which quality, auditable environmental data is
available. An example of improvement is the Peco Gas Plant and field operations
in Alberta, Canada, where, over the past 10 years, emissions of volatile
organic compounds, methane and carbon dioxide have been steadily reduced.

-- Environmental expenditures -- Costs for environmental protection in 2000
amounted to about $250 million, compared to $204 million in 1999. Of these
totals, only about 15 percent was spent on remediation. Yearly variations in
capital spending are largely influenced by expenditures to produce
cleaner-burning fuels and to reduce wastes and emissions from operations.

-- Social performance (internal) -- The company's Leadership Position Profiles
and Global Employee Opinion Survey are published for the first time. This
survey, which measures the human aspects of the work force, provides employees
a voice in Conoco's progress and future.

-- Social performance (external) -- While some business units have limited
metrics on social performance, Conoco says it recognizes the need for
additional measures of internal and external social performance and
responsibility.

-- Community outreach -- Conoco's worldwide cash contributions totaled $12
million in 2000, primarily in support of educational and health service
programs.

"This report is just one part of an evolving dialogue we will undertake to engage our stakeholders," Dunham said. "We are committed to listening and responding to their expectations and concerns. By doing so, Conoco can achieve sustainable growth -- and contribute to the sustainability of our planet."

Ernst & Young conducted an independent review of Conoco's Sustainable Growth Report to substantiate its contents, with over 300 individual statements verified. Ernst & Young also confirmed all performance metrics reported, and validated the global processes for collecting and reporting environmental, health and safety data.

The report can be viewed and ordered through the Conoco Web site at www.sustainablegrowth.conoco.com.

Conoco is a major, integrated energy company active in more than 40 countries.

http://www.conoco.com