2021 Human Capital Management Report by Phillips66Co

Phillips 66 at a glance With a unique portfolio of assets in the Midstream, Chemicals, Refining, and Marketing and Specialties businesses, we process, transport, store and market fuels and products globally. Our work contributes to meeting the world’s growing energy needs. Affordable, reliable and abundant energy is essential to sustaining human health and well-being and improving the global standard of living.

Midstream

Chemicals*

Refining

Marketing and Specialties

22,000+ 28

2 million 7,110

miles of U.S. pipeline systems

barrels per day (BPD) of crude throughput capacity**

global manufacturing facilities

branded U.S. outlets

1,700 branded international outlets

research and development centers in the U.S.

Our people execute our strategy to deliver long-term value. Operating Excellence Committed to safety, environmental stewardship, sustainability, reliability and cost efficiency, while protecting shareholder value

Growth Enhancing our portfolio by growing our integrated Midstream and Chemicals businesses, as well as executing our returns-focused, low-carbon strategy in Emerging Energy

Returns Improving returns by investing to optimize and enhance existing assets

Distributions Committed to maintaining financial strength and disciplined capital allocation to reward shareholders through continued dividend growth and share repurchases

High-Performing Organization Building capability, pursuing excellence and doing the right thing

As of Dec. 31, 2021 *50% joint venture interest in Chevron Phillips Chemical Company (CPChem) LLC **Includes our share of equity affiliates

PHILLIPS 66 2021 HUMAN CAPITAL MANAGEMENT REPORT

ON THE COVER San Francisco Refinery RODEO, CA

Messages From Our Leaders 2 Our Approach to Human Capital Management 4 Our Commitment to Human Capital Management 6 Our Culture 8 Employee Experience 20 Innovation 30 Total Rewards 38 Celebrating Success 44 Labor and Employee Relations 50 Appendix 56

C2G Pipeline BRAZORIA, TX

TABLE OF CONTENTS

To our employees, communities and shareholders, As we approach the 10th anniversary of Phillips 66, we have much to celebrate and much left to do. This Human Capital Management Report allows us to reflect on 2021 as we set new goals for 2022 and beyond. We have supported our workforce, championed innovation and challenged our teams to achieve excellence in every aspect of our business. As chair of our Executive Inclusion and Diversity Council, I am proud that we are recognized for our efforts to hire veterans, support the LGBTQ+ community and provide our employees with compensation and benefits that enrich their lives and reward performance and accountability to our strategic goals. We want every employee to reach their full potential to better our business, our industry and our world. To achieve this, we are actively listening to our stakeholders: employees, investors, Environmental, Social and Governance (ESG) firms, our communities and everyone interested in the future of energy. Nobody understands how to tackle the challenges in front of us more than the people who work in energy today. The energy transition is an opportunity for our company to collaborate and explore new and more efficient ways to power the world. We’re doing this by making datadriven decisions to deliver strong returns, considering market conditions and the changing environment, seeking partnerships to find efficiencies, using resources wisely and building organizations to evaluate new technologies.

Greg Garland

We have always been a company that takes deliberate, disciplined action. Our new Emerging Energy organization is the latest example. Our creative and innovative teams are focused on executing our lower-carbon strategy by commercializing and implementing new technology within our operations and portfolio of assets. Along with our targets to reduce greenhouse gas emissions intensity by 2030 and 2050, Phillips 66 is working to increase renewable fuels production, advance the electric vehicle battery supply chain, implement carbon capture technologies at select facilities and participate in commercial-scale, lower-carbon hydrogen production. Phillips 66 is a company of inventive problem solvers. Our people are inspired by our values and united by our vision of providing energy and improving lives. Across the value chain, our teams come together every day ready to work for the greater good. This report is a testament to their dedication. In safety, honor and commitment,

Greg Garland Chairman and CEO

PHILLIPS 66 2021 HUMAN CAPITAL MANAGEMENT REPORT

A CONVERSATION WITH SONYA REED Senior Vice President, Human Resources and Corporate Communications

How has Phillips 66 adjusted its people priorities in 2021? The last two years have been some of the most difficult in recent history. The pandemic, social unrest and natural disasters have caused stress and hardship but have also allowed us to reevaluate what is most important. Our company needed to give our people a chance to tell us how their priorities have evolved. So, in 2020 and 2021, our goal was to listen and make impactful change using engagement tools like VIEWPOINT and Your Personal Priorities, two global employee surveys. Unlike other companies that reduced headcount, furloughed staff, reduced salaries or cut bonuses, we asked how our benefits could better meet the needs of our evolving workforce. In response, we are taking actions that demonstrate our commitment to bringing out the best in our people so that they can continue to deliver exceptional results.

Where does Phillips 66 have the biggest opportunity to grow in relation to its people? Our goal is that everyone feels like they belong and benefit from a fully inclusive culture and diverse workforce because they are a catalyst for innovation, growth and profitability. We’ve evolved from simply defining what inclusion and diversity looks like at Phillips 66 to practicing inclusive behaviors every single day. In a company of our size and complexity, we have business units and locations at different points on this journey, so we’re assessing each individually, facilitating the development of their own plans for implementing and progressing inclusion and diversity in a way that makes sense for their organization’s needs.

Sonya Reed

Why do people want to make long-term careers at Phillips 66? The average tenure at Phillips 66 is 12 years. We have generations of families working for us. We’re a company that’s proud of where we’ve come from but even more inspired by where we’re going. People make their careers with us because we make investments in them. We invest in their training and skills development. We build leaders and innovative teams. And we do it all under the umbrella of providing energy and improving lives. What we do matters, and our people are committed to our vision.

MESSAGES FROM OUR LEADERS

Our Approach to Human Capital Management Our 11-member board of directors actively engages with Phillips 66 executive leadership on human capital management strategies and oversight. Directors stay informed through regular collaboration with senior leaders. Communication between the board and leaders helps us measure progress against goals, identify potential risks and develop meaningful solutions that serve our wider community.

We govern human capital management with the same rigor and discipline that we apply to operational and financial topics. They are woven into the domain of each of our specific board committees. • •

Board members stay connected to our corporate culture through visits to our facilities where they can talk to employees and understand the day-to-day operations.

• • •

The Public Policy and Sustainability Committee The Human Resources and Compensation Committee The Nominating and Governance Committee The Audit and Finance Committee The Executive Committee

The full charters for each committee can be found in the Investors section of Phillips66.com.

The board is responsible for ensuring the company’s actions adhere to its vision. The people of Phillips 66 live the company’s vision every day, and that’s a huge competitive differentiator.” GLENN TILTON Former Chairman and Chief Executive Officer of UAL Corporation

HUMAN CAPITAL MANAGEMENT KEY PRINCIPLES •

•

• •

Our people are bonded by our vision of providing energy and improving lives and our core values of safety, honor and commitment Our company strategy depends on our highperforming organization, which is defined by our culture, capability and performance Our commitment to safety and operating excellence makes us an industry leader in safety performance Our inclusive environment attracts and retains exceptional and diverse talent Our investments in development and career growth start from the moment an employee joins Phillips 66 to when they retire

• •

•

PHILLIPS 66 2021 HUMAN CAPITAL MANAGEMENT REPORT

Our incentives and benefits are competitive and respond to the needs of our evolving workforce Our Energy In Action (OEIA) sets behavioral expectations that preserve what makes Phillips 66 great and challenges us to evolve in ways that make us better Our employees, shareholders and communities are critical stakeholders with whom we proactively engage Our passion for innovation is a catalyst for growth and profitability

PHILLIPS 66 WELCOMES NEW DIRECTORS IN 2021 Two new members joined the Phillips 66 board of directors: Denise R. Singleton and Douglas T. Terreson. Both Singleton and Terreson serve on the Public Policy and Sustainability Committee. Singleton is also a member of the Audit and Finance Committee, and Terreson is on the Human Resources and Compensation Committee. Singleton and Terreson bring legal and financial expertise, respectively.

Left to Right: John E. Lowe, Julie L. Bushman, Charles M. Holley, Denise R. Singleton, Marna C. Whittington, Greg C. Garland, Glenn F. Tilton, Lisa A. Davis, Douglas T. Terreson, Denise L. Ramos, Gary K. Adams

Board of Directors at a glance

45%

91%

women

independent

TENURE

Average of 5 yrs.

CORE SKILLS AND QUALIFICATIONS

4 members

C-Suite Experience

<2 years

Risk Management Experience

3 members

91%

91% Environmental Experience 55%

2-6 years

4 members >6 years

Industry Experience 73% Financial Experience 64% Global Experience 100% OUR APPROACH

EXECUTIVE LEADERSHIP TEAM

GREG C. GARLAND

DAVID P. ERFERT

ROBERT A. HERMAN

Chairman and CEO

Senior Vice President, Health, Safety and Environment, and Projects

Executive Vice President, Refining

JEFF A. DIETERT

ZHANNA GOLODRYGA

MARK E. LASHIER

Vice President, Investor Relations

Senior Vice President, Chief Digital and Administrative Officer

President and COO

Our Commitment to Human Capital Management We value our people. They are our greatest resource and competitive advantage. Our Executive Leadership Team (ELT) is responsible for the execution of a high-performing organization, which is critical to our long-term success. We do this by proactively shaping our unique culture, building depth and breadth in capabilities, and delivering exceptional performance on a sustainable basis. We invest in our people. We develop skills to adapt to new technologies and ways of working. We build leadership capabilities to strengthen our culture and relationships. We maximize performance and nurture potential. We offer meaningful work that advances our vision, and we foster environments where everyone feels included and can create, innovate and thrive. The ELT and other senior leaders collaborate with the board of directors on human capital topics to ensure Phillips 66 has exceptional talent in place to lead us into the future. We measure progress against goals, identify potential risks and develop solutions that serve our wider community.

PHILLIPS 66 2021 HUMAN CAPITAL MANAGEMENT REPORT

BRIAN M. MANDELL

ANN M. OGLESBY

TIMOTHY D. ROBERTS

Executive Vice President, Marketing and Commercial

Vice President, Energy Research & Innovation

Executive Vice President, Midstream

KEVIN J. MITCHELL

SONYA M. REED

Executive Vice President, Finance and CFO

Senior Vice President, Human Resources and Corporate Communications

VANESSA L. ALLEN SUTHERLAND Executive Vice President, Legal and Government Affairs, General Counsel, and Corporate Secretary

We are pleased to welcome new members to the ELT. In 2021, Mark Lashier joined the company as the President and Chief Operating Officer after serving as the Chief Executive Officer for ChevronPhillips Chemicals Company, a global petrochemical joint venture in which Phillips 66 owns a 50% interest. David Erfert was internally promoted to Senior Vice President, Health, Safety and Environment, and Projects, after a long tenure in our Refining organization. Upon Paula Johnson’s retirement, Vanessa Allen Sutherland joined as Executive Vice President, Legal and Government Affairs, General Counsel, and Corporate Secretary. The composition of the ELT includes 33% women and 25% underrepresented groups. The average tenure is five years. Our high-performing organization is why people join Phillips 66; it is why they stay and why they choose to help our business thrive every day. The ELT is committed to equipping, engaging and empowering all employees to innovate and work in ways that deliver industry-leading performance.

OUR COMMITMENT

OUR CULTURE

EMPLOYEE EXPERIENCE

INNOVATION

TOTAL REWARDS

CELEBRATING SUCCESS

LABOR AND EMPLOYEE RELATIONS

Our Culture

Ponca City Refinery PONCA CITY, OK

PHILLIPS 66 2021 HUMAN CAPITAL MANAGEMENT REPORT

Building on what makes us great

OUR CULTURE

EMPLOYEE EXPERIENCE

INNOVATION

TOTAL REWARDS

CELEBRATING SUCCESS

LABOR AND EMPLOYEE RELATIONS

Our Culture Is a Proven Differentiator. Our Energy In Action is how we bring it to life. Phillips 66 has been a stand-alone company since 2012 and draws upon its rich heritage of nearly 150 years. Our core values of safety, honor and commitment define who we are and what we stand for.

In 2021, our employees delivered exceptional personal and process safety performance.

SAFETY IS AT THE FOREFRONT OF EVERYTHING It is our goal to send everyone home safely every day. Operating excellence — including personal and process safety, environmental stewardship and asset reliability — is critical to meeting our corporate strategy of growth, returns and distributions. Phillips 66 has an unrelenting commitment to the safety of our people and our communities. We are proud to be one of the energy industry’s safest and most reliable companies. We can only achieve this through continuous learning and improvement. We never settle.

David Erfert

In 2021, our employees delivered exceptional personal and process safety. Our Total Recordable Rate (TRR) of 0.12 was 25 times lower than the overall U.S. manufacturing average and lower than the 2021 average in the refining industry and other industries. Our combined Tier 1 and Tier 2 Process Safety was 0.13, which was our best ever performance.

“We always hold ourselves to the highest standards, but recognizing the potential for errors is the best way to put in place meaningful safeguards.” DAVID ERFERT Senior Vice President, Health, Safety and Environment, and Projects

TOTAL RECORDABLE RATE (TRR) BY INDUSTRY (Incidents per 200,000 hours worked) Industry Average (All industries including private, state and local government)

5 4 3 2 1 0

0.12 Food manufacturing

Retail trade

Construction

Motion picture, video industries

Sources: Bureau of Labor Statistics, 2020 data; Phillips 66, 2021 data

PHILLIPS 66 2021 HUMAN CAPITAL MANAGEMENT REPORT

Electric power generation, transmission, distribution

Petroleum refineries

Phillips 66

Stop-Work Authority All employees and contractors have the authority and are expected to stop work any time they think there might be an unsafe condition, practice or hazard involving themselves; the people around them; or the environment. We train our whole workforce to “stop when unsure.” No employee or contractor will ever receive negative consequences for using their stop-work authority in good faith, even if it turns out that there is no hazard. Health, Safety and Environment Management System (HSEMS) The HSEMS sets our standards and expectations for maintaining and improving safety, reliability and environmental impact. Our commitment to health, safety and the environment is demonstrated by our investment in safety training and asset maintenance and integrity. Exposure Monitoring Identifying and controlling exposures to chemical substances and physical agents are essential parts of protecting our people. Each manufacturing site is supported by an industrial hygiene (occupational health) professional who understands the potential sources of exposure, the process for evaluating exposure and the methods to protect employees and contractors. The industrial hygienist is also a resource for addressing environmental and community concerns. Everyone at Phillips 66 has a critical role in ongoing assessments. Exposure monitoring results are discussed with employees and people leaders, and work practices are adjusted to ensure continual effectiveness.

COMMITMENT TO SAFETY Each year, employees affirm their commitment to working safely when they sign their health, safety and environmental (HSE) Commitment Cards. These cards are a reminder of our 10 Life Saving Rules and the company’s safety principles and expectations, including the empowerment of each employee to ask for help and stop any activity that seems unsafe. The cards are also a catalyst for conversation, creating opportunities to talk about the importance of safety with new hires and visitors to our facilities. Each card lists 10 guidelines for safely navigating the workday. Every employee and their supervisor must sign it to confirm they have reviewed the information and are committed to our Principles of Safe Operation.

Ferndale Refinery FERNDALE, WA

OUR CULTURE

EMPLOYEE EXPERIENCE

INNOVATION

TOTAL REWARDS

CELEBRATING SUCCESS

LABOR AND EMPLOYEE RELATIONS

Rallying During Trying Times We manage risks every day and are confident in our ability to implement controls to keep our employees and communities safe. Amid a global pandemic and natural disasters, Phillips 66 led efforts to support and protect our employees, their families and our communities. OPERATING IN A GLOBAL PANDEMIC Our employees demonstrated our values of safety, honor and commitment by continuing to work safely across our network of pipelines, terminals, refineries, lubricants facilities and headquarters. We shared our onsite experiences and proven Layers of Protection strategy as a best practice with other companies returning their employees to their work locations. Phillips 66 maintains a multidisciplinary team to monitor and adjust COVID-19 response based on company case rates, community exposure and employee feedback. Health and welfare work practices and software systems have been overhauled to identify and manage potential exposure trends and vaccinations at our facilities. COVID-19 Vaccinations Our in-house medical services team, including a full-time physician and registered nurses, provides health guidance and leads contact tracing processes, digital contactless solutions and oversees vaccine administration. Phillips 66 encourages and supports our employees, contractors and communities where we operate in obtaining and administering COVID-19 vaccinations. The company vaccination efforts include educating employees about COVID-19 vaccines and supporting onsite and community vaccination clinics. To date, Phillips 66 has facilitated the delivery of more than 10,000 doses of the vaccine. In addition, eligible Phillips 66 employees receive paid time off when they choose to be vaccinated during their work time.

COVID-19 LAYERS OF PROTECTION

Vaccines

Social Distancing and Barriers

Health and Hygiene

Protect Vulnerable Population

Contact Tracing

Common Surface Disinfection

Volunteer event at Children’s Museum Houston HOUSTON, TX

PHILLIPS 66 2021 HUMAN CAPITAL MANAGEMENT REPORT

POWERING THROUGH HURRICANE IDA Hurricanes are a common occurrence for coastal refinery operators. We plan for them, prepare for them and power through them. In 2021, Hurricane Ida presented challenges for our Alliance Refinery in Louisiana, our Bayway Refinery in New Jersey and our Midstream operations. Our priority at affected locations is always the safety of our people. We worked to ensure their families and homes were safe. We also secured our assets during the storm and prepared for an efficient restart when the storm was over. We established an Incident Control Structure, which helped our people and our assets. Louisiana Midstream Operations Ida made landfall in Louisiana as a Category 4 hurricane. It was the second-most damaging and intense hurricane to hit the state. People lost electricity, winds damaged homes, and floodwaters covered roads and destroyed homes. When the storm hit the Louisiana River Parish area, the Louisiana Midstream Operations and Maintenance team immediately responded and assessed all our Midstream assets in the area. The entire operation was executed safely and without incident. When the storm headed north, it brought rain and high winds to every state in its path. When Ida reached New Jersey, as a tropical storm, it became that state’s second-deadliest storm ever. Bayway Refinery Ida brought severe flooding as it dumped inches of rain to the already waterlogged Bayway, New Jersey, area. As the storm continued, employees at home returned to assist the refinery. Because of the team’s efforts, units started up the next day, reducing the impact of a difficult storm event and ensuring that we would meet the energy needs of our customers.

I can’t say enough about the character of our people. They’re resilient, committed, dedicated and selfless. They have an unbelievable drive to work for the greater good.” GILBERT BETANCOURT Southeast Region Manager, Midstream

Caring for Our Communities Beyond taking care of our employees, we have an obligation to their families and the people who live in the communities surrounding our facilities. We supported recovery efforts through a $1 million contribution to the American Red Cross. We matched employee contributions to 501(c)(3) disaster relief organizations through our Matching Gift program for U.S. employees.

SUPPORTING OUR COMMUNITIES DURING A TIME OF NEED Phillips 66 invested $27 million in our communities in 2021, including safe school reopening efforts, local food banks, conservation projects, United Way campaigns and Inclusion & Diversity (I&D) organizations.

$10.5 million in Education and Literacy

$4.1 million in Community Safety and Preparedness

$3.3 million in Environment and Sustainability

$3 million in Civic Enrichment

Our 2021 company-sponsored United Way campaign was our largest employee giving campaign in company history. Phillips 66, our employees and our retirees donated $5 million to nine United Way organizations across the United States.

OUR CULTURE

EMPLOYEE EXPERIENCE

INNOVATION

TOTAL REWARDS

CELEBRATING SUCCESS

LABOR AND EMPLOYEE RELATIONS

LEADERSHIP INSIGHTS

People, Safety and Culture Vice President of Midstream Operations Todd Denton believes a leader's most important role is shaping company culture, executing a compelling vision and doing the right thing. Denton has been in energy since 1990 and joined Phillips 66 at our inception in 2012. He's been leading our Midstream logistics business ever since and is deeply involved in our inclusion and diversity initiatives. Denton’s positive impact goes beyond Phillips 66. He was honored with the North American Oil & Gas Pipelines' 2021 Pipeline Leadership Award. The accolade recognizes his work with regulatory agencies and several industry groups and his dedication to collaboration and communication that has helped operators share learnings and develop best practices for the entire industry. Denton says he believes in the power of creating a strong team. “I approach leadership by hiring people with character, integrity and the energy to get the job done.”

When you have the right people and a vision for success, it’s time to prioritize goals and execute on that vision.”

Todd Denton Vice President, Midstream Operations BRAZORIA, TX

His commitment to keeping people safe has helped our company achieve outstanding employee safety and operational results. Even in challenging years like 2020, Phillips 66 had zero recordable employee injuries, zero Tier 1 pipeline system releases and zero significant vehicle accidents.

WEB-EXCLUSIVE Phillips 66 earns two of industry’s top awards for pipeline safety In 2021, Phillips 66 earned the American Petroleum Institute’s (API) 2020 Distinguished Pipeline Safety Award in the large operator category and several awards from the GPA Midstream Association, including a Perfect Record Award, presented to companies with no lost-time incidents; the Chairman’s Award for Safety Improvement; and a second-place Division 2 Safety Award for companies recording between 200,000 and 999,000 operational work-hours on NGL assets. Denton’s efforts have helped make a difference. API’s Pipelines, Midstream and Industry Operations manager says that in 2020 alone, total liquid pipeline incidents were down 13%. Over the last five years, incidents have fallen 21%, even as barrels delivered have increased over 27%. Because of Denton’s leadership, our workforce, our industry, and the people and environment in the communities near our facilities are all safer.

PHILLIPS 66 2021 HUMAN CAPITAL MANAGEMENT REPORT

Preserving the Best of Who We Are, While Shaping Our Organization for the Future Our workforce is evolving and our business is transforming, enabling us to purposefully refine our culture. OUR ENERGY IN ACTION (OEIA) Our Energy In Action is a common set of behavioral expectations for all employees. OEIA is how we treat each other, our customers and our communities. It preserves what makes Phillips 66 great and challenges us to become better. Together with our values, the principles of OEIA govern how we work, influence how we make decisions and help us seek different perspectives. We model and measure against these principles by integrating them into all our people practices, including succession management, talent reviews, Total Rewards and recruiting. In our 2021 employee engagement survey, we established baselines for adopting OEIA behaviors and how they contribute to building an inclusive culture.

71% of employees experience Our Energy In Action on a daily basis.

Work for the greater good.

Create an environment of trust.

Seek different perspectives.

Achieve excellence.

We embrace our values as a common bond.

We depend on each other to do our jobs.

We create space for possibilities.

We challenge ourselves and never settle.

Be a good neighbor and use resources wisely.

Build relationships by understanding the experience of others.

Examine the risks and challenge the status quo.

Acknowledge and rebound from our mistakes.

Be open to new ways of thinking.

Embrace change and adapt quickly.

Speak up and share our unique expertise.

Be curious and pursue lifelong learning.

Listen and make sure everyone is heard.

Leave things better for the next person.

Prioritize the big picture interests of the company. Work across teams, business units and functions. Hold ourselves accountable for our words, work and actions.

rovide and welcome P real-time feedback. Treat everyone as a contributing team member. Resolve differences quickly and move forward.

Don’t let self-interest come first.

Don’t say one thing and do another.

Don’t simply accept the “way we have always done things.”

Don’t avoid difficult decisions.

Living our values earns us the confidence of our business partners, communities and co-workers.

Trusting each other makes us more productive and agile.

Championing inclusion enables us to innovate and thrive.

Continuing to improve ensures we deliver extraordinary performance.

OUR CULTURE

EMPLOYEE EXPERIENCE

INNOVATION

TOTAL REWARDS

CELEBRATING SUCCESS

LABOR AND EMPLOYEE RELATIONS

Building an Inclusive Culture and Enhancing Representation A diverse workforce, powered by an environment of inclusion, expands our ability to collaborate, innovate and differentiate our performance. Inclusion and diversity are critical to driving a high-performing organization and living the principles of OEIA. At Phillips 66, we lead with inclusion because, in its absence, diversity cannot thrive. We promote environments free of biases where all employees feel valued, respected and supported. We view diversity as the differences that shape social identity and drive behaviors — from gender, race, ethnicity, age, national origin and disability to sexual orientation, education and religion. Seeking input from people with different perspectives, backgrounds and cultures advances our thinking and enables us to reach our full potential. We are taking a leader-led approach to enhance inclusion and diversity at our company. We’ve embedded it into our business processes and added behavioral expectations to our performance evaluations, much like we do for safety, and we hold our leaders accountable for results. Our Executive Inclusion & Diversity Council sets and monitors the execution of our company’s inclusion and diversity strategy. The council is led by our chairman and CEO and is comprised of members of our ELT and leaders from business units and functions. Council members also serve as executive champions and global sponsors of our Employee Resource Groups (ERGs) to actively engage with and understand the experiences of our employees. INCLUSION AND DIVERSITY ORGANIZATIONAL ASSESSMENT We equip and support our leaders with data, tools and resources to own and model inclusion. In 2021, we developed a tailored, data-driven inclusion and diversity organizational assessment and deployed it in 75% of our business units and functions, representing 71% of the enterprise population. The remainder of the company will complete the assessment in 2022. The assessment ensures we focus our efforts and resources on the most impactful initiatives for each of our business units. The process uses location-specific qualitative and quantitative data in three key areas: leadership alignment and engagement, organization and environment, and talent practices to support and measure progress. It was designed to provide a consistent framework to meet business units or locations where they are on the inclusion and diversity journey, while addressing the unique challenges each might face. It allows each business unit or location to focus on the initiatives that will make the biggest impact for them. Organizational assessment results enable leaders to determine priorities and create focused plans to drive value and accountability for 2022. This helps foster measurable progress within each business and across the company. C2G Pipeline REFUGIO, TX

PHILLIPS 66 2021 HUMAN CAPITAL MANAGEMENT REPORT

Inclusion and Diversity Around the Globe Our Singapore office has about 70 employees representing 10 nationalities. In 2021, they partnered with the Asian American Network in Bartlesville, Oklahoma, to create awareness of our presence in Singapore and China and highlight Singapore’s unique mix of cultures. The Singapore office also started an Inclusion & Diversity Committee to celebrate its diversity and enhance employees’ sense of belonging in our global company.

Phillips 66 Singapore office SINGAPORE

In the United Kingdom, our U.K. Inclusion & Diversity team is proving that adaptability and agility are keys to serving employees’ needs. The team launched as a pilot program in 2019 and was made permanent in 2020. Since its inception, there have been many successes, including the United Kingdom’s Silver Armed Forces Covenant Award recognizing support for veterans and those actively serving. The team has also provided technology access for children during COVID-19 school closures, organized unconscious bias training, supported women in the energy industry and held LGBTQ+ day and ally awareness training. In addition, as the need for supporting employees’ mental health became a priority throughout the pandemic, the team added a well-being survey, enhanced leader and supervisor training, and launched the U.K. Mental Health First Aid Champions. WORKFORCE DIVERSITY ENHANCES OUR HIGH-PERFORMING ORGANIZATION Our efforts to build a more inclusive and diverse workforce are reflected in our retention rate of 94% female and 95% underrepresented groups. We recognize the importance of improvement, and we’re measuring our progress over time using a diversity dashboard that allows us to monitor hiring, promotion and attrition metrics. Our leaders focus on acquisition, development and retention to enhance representation across the organization. The data trends below demonstrate our commitment to progress.

Representation at a glance

23%

improvement in underrepresented groups in the U.S. since 2013

improvement in women in professional roles globally since 2013 U.S. (%)

GLOBAL (%)

Hispanic

Black

Asian/ Pacific Islander

American Indian/ Alaskan

Two or More Races

Native Hawaiian/ Other Pacific Islander

Total Underrepresented Groups

Women

Full Workforce

11.2

7.1

4.6

2.4

1.2

0.4

26.9

20.6

People Leaders

8.9

4.8

4.3

2.3

0.7

0.2

21.2

18.8

Non-People Leaders

11.7

7.6

4.7

2.5

1.3

0.4

28.2

21.0

Data reflects Phillips 66 workforce excluding Sentinel Transportation, LLC as of Dec. 31, 2021

OUR CULTURE

EMPLOYEE EXPERIENCE

INNOVATION

TOTAL REWARDS

CELEBRATING SUCCESS

LABOR AND EMPLOYEE RELATIONS

WORKING TOGETHER FOR SHARED UNDERSTANDING Our nine Employee Resource Groups focus on engaging and developing our people and building internal networks that serve the communities where we live and work. They are forums for sharing different perspectives and raising awareness around identity and belonging. Each ERG is led by an ELT sponsor and supported by local and global executive leadership.

50+

1 in 3

ERGs

chapters

employees participate

Asian American Network Black Employee Network Hispanic Network Inclusion & Diversity Network (U.K.) Native American Network New Hire Network

Inclusion & Diversity Week is an annual event dedicated to bringing awareness to the benefit of building an inclusive culture with a diverse workforce. Content is developed by employee volunteers and is an opportunity to understand and learn through the experience of others and support our mission to foster an environment where all employees feel safe, seen, heard and respected.

PRIDE66 Veterans Network Women’s Network

ERGs Support Professional Development Our ERGs are a network of resources that support the performance of Phillips 66 by proactively developing our employees in unique ways that help them realize their full potential. Among the innovative employee growth and self-help programs, two stand out: the EMERGE Leader Experience hosted by the Black Employee Network and the Professional Development Program hosted by the Asian American Network. Both programs engage employees through curricula that develop and enhance leadership capabilities, relationship management and personal empowerment. Participants benefit from workshops on industry topics and career development, internal and external speakers, senior leadership panels, and peer and leadership networking opportunities.

EMERGE Leader Experience HOUSTON, TX

EMERGE Results

46%

22%

14%

of the participants from the EMERGE series are in people leader roles

have earned a promotion

have changed roles within the company

PHILLIPS 66 2021 HUMAN CAPITAL MANAGEMENT REPORT

Bayway Refinery LINDEN, NJ

New Programs Encourage Mentorship and Innovation Our Bayway Refinery enhances the employee experience by proactively developing people and enabling open communication. In 2021, ERGs and the Human Resources team at Bayway collaborated on two new initiatives: a Reverse Mentoring Program and a Thought Innovation Panel (TIP), both inspired by OEIA principles. REVERSE MENTORING PROGRAM The program pairs each of Bayway’s eight refinery leadership team (RLT) members with a mentor whose background, work area, perspectives and experiences help them better understand the day-to-day of refinery employees. “The Reverse Mentoring Program has allowed young engineers to have a voice and not be afraid to talk about the things we believe in,” said Wilmar Rusinque, Process Engineer. THOUGHT INNOVATION PANEL Bayway’s TIP disrupts “group think” to generate new initiatives and innovations. Panel members represent various departments, age groups, genders and cultural backgrounds and assist the RLT in identifying and understanding emerging demographic-driven initiatives, trends and concerns. TIP also helps the leadership team interpret and act on employee engagement survey results. “Constructive feedback resulted in streamlined processes and helped improve trust and teamwork at the leadership level,” said Chris Gallo, General Manager, Bayway Refinery. “It also helped me better understand the experiences of our diverse workforce.” OUR CULTURE

OUR CULTURE

EMPLOYEE EXPERIENCE

INNOVATION

TOTAL REWARDS

CELEBRATING SUCCESS

LABOR AND EMPLOYEE RELATIONS

Employee Experience

Phillips 66 Limited London Office LONDON, UNITED KINGDOM

PHILLIPS 66 2021 HUMAN CAPITAL MANAGEMENT REPORT

Fostering a sense of belonging

EMPLOYEE EXPERIENCE

OUR CULTURE

EMPLOYEE EXPERIENCE

INNOVATION

TOTAL REWARDS

CELEBRATING SUCCESS

LABOR AND EMPLOYEE RELATIONS

From Recruitment to Retirement and the Moments Between, Phillips 66 Is a Place to Build a Career. We welcome people from all backgrounds and offer rewarding career paths in various disciplines across our diverse and integrated value chain. Our Workforce at a glance TYPES OF WORK 33%

Operations 19%

Maintenance Crafts Engineering

Finance

33%

Marketing and Sales Commercial

people leaders

HSE/Project Management

Research and Development

employees*

17%

Digital Information Technology

14,000

Other

represented by a labor union

15%

* including ~700 Sentinel Transportation LLC employees

LOCATIONS

90% United States

• 73% • 27% Field

Houston, Texas, and Bartlesville, Oklahoma

7% United Kingdom

2% Germany/Austria

Generational Break Out

Canada/China/UAE/Singapore 22

PHILLIPS 66 2021 HUMAN CAPITAL MANAGEMENT REPORT

13%

39%

Boomer

Gen X

43%

Millennial

Gen Z

Phillips 66 makes investments in the entire career lifecycle — from attracting diverse talent to developing and promoting our people, we’re continuously building our workforce for the future. 2021 Recruitment and Development at a glance ATTRACTION

39%

47%

32%

women among intern class

underrepresented groups among intern class

women among university new hires

underrepresented groups among university new hires

Data reflects Phillips 66 U.S. workforce

PROMOTION

20%

23%

22%

workforce promoted

women promoted

underrepresented groups promoted

RETENTION AND DEVELOPMENT

PLANNING FOR THE FUTURE 96%

59%

retention of high performers

of internal transfers are development moves

52 hours invested in training per employee, per year

We’re building leaders to help maximize each employee’s potential and aid in succession planning. For senior executive roles, the board of directors has oversight of our succession plans as we prepare for long-term business sustainability. The board cultivates connections with our executive leaders to build relationships and get to know potential successors.

100% succession bench utilization for all senior leader retirements

Our thoughtful approach to succession planning enables people leaders to help employees gain the necessary skills and experience, so they’re ready when new opportunities emerge.

EMPLOYEE EXPERIENCE

OUR CULTURE

EMPLOYEE EXPERIENCE

INNOVATION

TOTAL REWARDS

CELEBRATING SUCCESS

LABOR AND EMPLOYEE RELATIONS

RECRUITING TOP TALENT As a high-performing organization, we seek to hire top talent. Our digital recruiting tools enhance our ability to reach an expanded network of experienced, university and trade school candidates and ensure a consistent and efficient hiring process focused on a positive experience for recruits. To encourage diverse candidate pools for open positions and provide inclusive candidate experiences, we’ve expanded the use of blind resumes, diverse interview panels and gender-neutral job descriptions. We also partner with outside organizations such as Hiring Our Heroes to hire transitioning military personnel.

Our University Recruiting team cultivates on-campus relationships with administrators, faculty and students. We’re also expanding our network and relationships with technical schools to strengthen our pipeline of critical craft talent. In addition, our recruiting efforts span the STEM organizations we support, such as the Society of Women Engineers, the National Action Council for Minorities in Engineering, the National Society of Black Engineers and the National Association of Black Accountants.

schools represented by our 2021 U.S. new hires and interns

We have 19 schools in our U.S. university portfolio, three of which are Hispanic Serving Institutions. We monitor criteria for our portfolio schools, including program rankings, diversity of the student population, geographic locations in relation to our assets and the success of people hired over time. However, our reach extends beyond our university portfolio through digital networking tools and the open application process on our website.

2021 refinery interns BELLE CHASSE, LA

PHILLIPS 66 2021 HUMAN CAPITAL MANAGEMENT REPORT

schools in our U.S. university portfolio

2021 business interns BARTLESVILLE, OK

INDUSTRY-LEADING INTERNSHIP PROGRAM IS A PIPELINE FOR THE FUTURE The quality of our internship program is a competitive differentiator and an essential part of building a highperforming organization. We provide paid internships at every major global location, offering students meaningful hands-on opportunities to learn and contribute to our success. Each intern is assigned a supervisor and mentor in addition to many networking opportunities.

FROM INTERN TO NEW HIRE Interns work on projects that serve real business needs, such as evaluating the viability of adding power trading to our portfolio or developing a Tank Repair Budget Model to improve long-range planning accuracy.

85% of our university hires come from our internship program

SHAYNA SRACKANGAST Pricing Analyst, U.S. Marketing

YASH DARSHANE Crude Analyst, Commercial

Shayna Srackangast and Yash Darshane interned in a virtual format during the height of the COVID-19 pandemic in the summer of 2020. Both found value in the depth of their projects and their ability to connect with the company culture even while participating virtually. They were extended full-time offers and came aboard as university new hires in the summer of 2021. Srackangast, who is now a pricing analyst in U.S. Marketing, and Texas A&M graduate said, “I believe the Phillips 66 internship program offers a level of respect and experience to its interns that other programs do not. The level of responsibility and expectations stretch you to develop professionally very early in your career.” Darshane agrees. The Commercial Crude Analyst, and a graduate of Georgia Tech said, “After my internship, my manager told me that he had used my analysis to better understand and negotiate our exchange agreements with a counterparty. It was a feeling of accomplishment knowing that I had made an impact on the organization during my internship.”

EMPLOYEE EXPERIENCE

OUR CULTURE

EMPLOYEE EXPERIENCE

INNOVATION

TOTAL REWARDS

CELEBRATING SUCCESS

LABOR AND EMPLOYEE RELATIONS

Support for Active-Duty Military and Veterans Our goal is to support veterans’ personal and professional development by valuing and utilizing the skills and experiences gained through military service. Phillips 66 is consistently recognized for its support of military hires. We participate in the Hiring Our Heroes Corporate Fellowship Program. This innovative 12-week program provides transitioning service members with professional training and hands-on experience in the civilian workforce.

9% of our employees are veterans

8% of people leaders are veterans

I joined the company in 2001, seven years after separating from active duty in the Army. I recognize in my fellow military-veteran employees the high standard of conduct, which carries over from our service.” JENNIFER BODIN Scheduler, Specialty Solvents

12 company chapters of the Veterans Network ERG

700+ Veterans Network ERG members across U.S. facilities

HIRE VETS

MILITARY TIMES

U.K. MINISTRY OF DEFENCE

U.S. DEPARTMENT OF DEFENSE

Medallion Award

Best for Vets Employer

Silver Armed Forces Covenant

Freedom Award

I have always felt my supervisor is proud to support me in my military service. While I was deployed, he would regularly check on my family and me. I believe the company genuinely cares about our well-being.” LARRY P. MURRAY JR. Senior Contract Specialist

PHILLIPS 66 2021 HUMAN CAPITAL MANAGEMENT REPORT

Veteran recognition display at Ponca City Refinery PONCA CITY, OK

EMPLOYEE EXPERIENCE

OUR CULTURE

EMPLOYEE EXPERIENCE

INNOVATION

TOTAL REWARDS

CELEBRATING SUCCESS

LABOR AND EMPLOYEE RELATIONS

PROACTIVELY DEVELOPING OUR PEOPLE We provide career development opportunities at all levels, beginning with onboarding and technical training through skill and people leader development. Our continuous coaching model for performance management helps us operationalize inclusion with critical one-on-one connection points between employees and their people leaders. Employee Development Our development practices recognize employees for who they are and what they need to reach their full potential. We offer several resources to help employees work toward and achieve their goals, including: •

•

Comprehensive onboarding programs and experiences to increase understanding of our business and culture and create a foundation for success Skill and business-unit specific training programs

• • •

In-classroom, on-demand and immersive learning opportunities Rotational and developmental assignments Conversations between supervisors and employees about building capabilities and realizing aspirations

SUCCESS FROM DAY ONE The success of our company depends on the success of our employees. That’s why we’ve developed specialized training to help new hires understand the business and their roles. Our training programs include:

PREP

PROPEL

KATALYST

This three-year program helps engineers develop business and financial acumen through learning sessions hosted by refining experts and Phillips 66 leadership.

Engineers in their first five years at Phillips 66 have access to this program offering self-paced study and a wide array of virtual courses.

New hires in marketfacing business units are immersed in learning the energy value chain, followed by targeted rotations and networking.

SITE- AND FUNCTION-SPECIFIC DEVELOPMENT In the field, hands-on, on-the-job training is tailored to each engineer’s job responsibilities. Our engineers receive meaningful training for safety procedures and specific tasks. Many business support functions also have specific training programs, including the Finance Functional Excellence Program, Marketing Leadership Development Program and the IT Experience 66 new hire program. PEOPLE LEADER DEVELOPMENT Our improved manager effectiveness scores on the next page demonstrate our investments in people leader development. We offer a three-year leadership curriculum, and our virtual People Leader Hub enables connecting, sharing and learning from others. Year 1 — New Leader Foundation provides a safe place to learn, ask questions, grow and practice skills.

Year 2 — Leading the Vision teaches Year 3 — Leading for Success builds skills to maintain a high-performing effectiveness in delivering results team through engagement and trust. through others.

PHILLIPS 66 2021 HUMAN CAPITAL MANAGEMENT REPORT

EMPOWERING OUR PEOPLE TO BE THEIR BEST Listening and seeking to understand the experiences of our employees are key to continuously raising the bar on our performance. Every two years, we survey our entire workforce through VIEWPOINT, which measures employee engagement, manager effectiveness and performance enablement. Overall, 74% of our workforce participated in the 2021 VIEWPOINT survey, underscoring our peoples’ commitment to making Phillips 66 an even better place to work.

10,000+

60+

80%*

5 point

responses

robust questions

engagement

improvement in engagement from 2018

*When measuring the same four questions over the 2018 and 2021 survey cycles.

2021 VIEWPOINT Engagement at a glance

Our 2021 VIEWPOINT survey results show an improvement in employee engagement, manager effectiveness and performance enablement.

Building a strong sense of pride

Connecting managers with teams

Getting the job done

Over 90% of our employees are proud to work for Phillips 66, and nearly as many feel a sense of personal accomplishment.

81% of our employees said

82% of employees feel they

Positively experiencing OEIA

Fostering an inclusive culture

There’s appreciation for efforts to create an environment of trust and seek different perspectives to achieve excellence.

A sense of belonging emerged as the biggest driver of engagement, reinforcing our commitment to maintaining an inclusive workplace.

their immediate supervisor is effective, up 4 points from 2018 and 9 points from 2016. Supervisors are trusted, caring, and establish clear goals and expectations.

have the tools and cooperation needed to do their jobs well in a culture that enables them to succeed, a 6-point improvement from 2018.

We have a rich, layered portrait of our current employee experience and realized very strong survey results during a global pandemic. We are proud of what that says about our culture and its resilience.” PATTI CELESTINE, MANAGER, Talent & Organizational Strategy

EMPLOYEE EXPERIENCE

OUR CULTURE

EMPLOYEE EXPERIENCE

INNOVATION

TOTAL REWARDS

CELEBRATING SUCCESS

LABOR AND EMPLOYEE RELATIONS

Innovation

Bartlesville control center BARTLESVILLE, OK

PHILLIPS 66 2021 HUMAN CAPITAL MANAGEMENT REPORT

Thriving during the energy transition

INNOVATION

OUR CULTURE

EMPLOYEE EXPERIENCE

INNOVATION

TOTAL REWARDS

CELEBRATING SUCCESS

LABOR AND EMPLOYEE RELATIONS

Innovation Is Part of Who We Are. Mark Lashier

Our people strengthen our ability to develop and apply new knowledge to help us meet the world’s growing energy demands while building a lower-carbon business to compete in the energy transition. It’s about being more efficient in providing the energy we make today and investing in new energy solutions for tomorrow — innovation, led by our people, is key to both.

“We don’t want to just survive the energy transition. We’re developing our people, building innovative teams and making strategic choices to help us thrive.” MARK LASHIER President and Chief Operating Officer

BUILDING OUR EMERGING ENERGY TEAM In January 2021, we launched an Emerging Energy organization to unify and accelerate energy transition projects across the company. This team includes employees from various disciplines who are focused on commercializing and implementing emerging energy technologies and work closely with experts in Energy Research & Innovation (ERI), Strategy, Refining, Commercial, Marketing and Specialties, Government Affairs, and other business units to identify and evaluate new opportunities. The team concentrates its efforts on four key areas:

RENEWABLE FUELS Building on core adjacencies to become a market leader

BATTERIES

CARBON CAPTURE

LOW-CARBON HYDROGEN

Extending participation into the battery value chain

Establishing competitive position and scale in high-potential markets

Positioning early to secure market share

We’ve built a companywide internal ecosystem that is driving our Emerging Energy business forward to deliver real value for our shareholders.” HEATH DEPRIEST Vice President, Emerging Energy

PHILLIPS 66 2021 HUMAN CAPITAL MANAGEMENT REPORT

Emerging Energy partners with our ERI team, which operates at the Phillips 66 Research Center in Bartlesville, Oklahoma. Inside the 440-acre facility are people from 30 different countries speaking 24 languages. Scientists, engineers and technicians work together to advance the cutting-edge science that is critical for enhancing company sustainability, developing future technologies and supporting existing operations. From the laboratory to pilot facilities, in-house research and development at Phillips 66 drive new ideas toward commercialization.

Energy Research & Innovation at a glance

~200 labs with technicians, craftspeople, Ph.D. scientists and engineers

countries represented

languages spoken

508

440

active patents in 21 countries worldwide

acres of the Phillips 66 Research Center in Bartlesville, Oklahoma As of Dec. 31, 2021

ERI’s battery program, which includes energy production and storage technologies, is an excellent example of collaborative efforts to advance the energy transition. Phillips 66 is a leading global supplier of specialty coke, a precursor to producing lithium-ion batteries used in personal electronics and electric vehicles (EVs). To advance the U.S. battery supply chain, Phillips 66 became a strategic investor in NOVONIX, a developer and supplier of materials for lithium-ion batteries. The two companies are working on a technical collaboration led by the ERI team to advance the U.S. battery supply chain. In 2021, ERI also brought its expertise in developing specialty carbon materials to Faradion, a leader in sodium-ion battery technology. The ERI team collaborates with leading industry and academic research institutions, providing our people with learning, networking and professional growth opportunities. For example, Phillips 66 joined the Stanford Energy Corporate Affiliates program, connecting our team with Stanford University researchers and other partner companies on energy research.

WEB-EXCLUSIVE Learn more about Energy Research & Innovation Batteries laboratory BARTLESVILLE, OK

INNOVATION

OUR CULTURE

EMPLOYEE EXPERIENCE

INNOVATION

TOTAL REWARDS

CELEBRATING SUCCESS

LABOR AND EMPLOYEE RELATIONS

FINDING NEW WAYS OF WORKING Part of our ability to compete in the energy transition relies on finding better, more efficient ways of working to generate bottom-line savings. AdvantEdge66 is our center for ongoing, enterprisewide transformation since 2018. AdvantEdge66 projects help us streamline processes and decision-making, leverage digital capabilities, and advance automation. We’ve unlocked value through digitizing refining operations and building analytical capacity to use data as an asset.

“AdvantEdge66 is focused on transformational change because we know change and continuous improvement never stop. We are continuing to innovate and find new ways of working to help us lead the energy transition.” ZHANNA GOLODRYGA Senior Vice President and Chief Digital and Administrative Officer

Zhanna Golodryga

Digital Operations and Maintenance Part of changing how we work through AdvantEdge66 includes digitizing our operations and maintenance. We went paperless across our field locations and empowered our people to work smarter and more efficiently using tablets and work-enhancing apps. This change has amplified productivity, increased access to data and enabled better knowledge sharing. As our transformation continues, we’re taking digitization a step further to improve safety and operational efficiencies, including: • Creating wireless connectivity inside our refineries to enable smart monitoring of operations, utilizing sensors to analyze and alert of irregularities. This reduces risk, enhances safety and optimizes energy utilization. • Utilizing drones to conduct inspections and support emergency response to improve our visibility and enhance safety. Phillips 66 has more than 65 trained and qualified drone pilots across our Refining and Midstream organizations.

BUILDING CONFIDENT AMBASSADORS Our people have an important role in the future of energy, and we want to make sure they’re well equipped to talk about it if they choose to. That’s why we offer engaging energy resources through our Phillips 66 Ambassador Program. Employees can follow the channel on our internal app, MyRoute, and use it as a resource to enhance their knowledge about our company and our industry. In 2021, we also launched a three-module computer-based learning opportunity and Energy in Focus conversation sessions to provide interested employees with tips for engaging in positive energy discussions. We had more than 500 training registrations in the inaugural year.

PHILLIPS 66 2021 HUMAN CAPITAL MANAGEMENT REPORT

Be an Ambassador channel on the MyRoute app

Excel Paralubes WESTLAKE, LA

WEB-EXCLUSIVE Phillips 66 sets reduction targets for greenhouse gas emissions

Innovation and Performance Innovation keeps Phillips 66 competitive and secures a sustainable future. It drives solutions to reach our business and environmental targets, like our intent to reduce greenhouse gas emissions intensity from our operations and energy products by 2030 and 2050. The company’s annual incentive program reflects the importance of these priorities. In 2021, we increased the weight of environmental metrics in calculating the program payouts. Also in 2021, Phillips 66 added an innovation category to its annual recognition program, the Golden Shield Awards, which celebrates outstanding performance and the people who deliver superior results while demonstrating principles of OEIA. The inaugural Innovation award went to the Phillips 66 Lubricants team for developing a groundbreaking High Mileage Booster product for the Kendall and Phillips 66 Shield motor oils.

INNOVATION

OUR CULTURE

EMPLOYEE EXPERIENCE

INNOVATION

TOTAL REWARDS

CELEBRATING SUCCESS

LABOR AND EMPLOYEE RELATIONS

Our People Blaze a Trail. Phillips 66 has a rich history of discovery, research, innovation and collaboration. Our people are a testament to that. MEET JANE YAO She received her 90th U.S. patent in 2021 and has several others pending. Since joining the company 26 years ago, she has worked on projects in refining, petrochemicals, renewable diesel, syngas conversion and, most recently, light alkanes and hydrocarbon conversion with novel catalytic materials and technologies that support a sustainable lower-carbon economy. She holds MSc degrees in catalysis from Nanjing University in China and a doctorate in catalysis from Concordia University in Canada. She was the local sponsor of the Bartlesville Asian American Network ERG for eight years and is still an active member. Her knowledge, experience and never-ending commitment to innovation inspire the next generation of problem solvers across Phillips 66.

I have been fortunate to interact with many talented scientists, engineers and technicians. That collaboration enriches our creative thinking and inspires new ideas.” JANE YAO Senior Principal Scientist, Energy Research & Innovation

WEB-EXCLUSIVE Learn more about our patent milestones MEET NIK WEINBERG-LYNN In his 15 years with Phillips 66, Nik has developed from a chemical engineer perfecting the chemical processes of refining crude oil to an industry expert who’s helping write the book on how to refine renewable feedstocks. He’s part of the team behind Rodeo Renewed, a project to convert the San Francisco Refinery’s Rodeo facility into one of the world’s largest renewable fuels facilities. Once fully operational, it is expected to initially produce 800 million gallons per year of renewable diesel, renewable gasoline and sustainable jet fuel from used cooking oils, fats, greases and vegetable oils. It will reduce our criteria pollutants by 50% at the refinery site and result in an 80% reduction of sulfur dioxide emissions.

I grew up in the San Francisco Bay Area, about 15 miles from the refinery. I’m raising my three small kids here now, so it’s rewarding to be a part of the energy future and have the opportunity to make a positive impact in our own backyard.” NIK WEINBERG-LYNN Manager, Rodeo Renewable Energy

PHILLIPS 66 2021 HUMAN CAPITAL MANAGEMENT REPORT

Developing a Culture of Innovation Global Marketing is bringing innovation to life through its people by focusing on four key areas.

Cultivating an innovative culture

Optimizing the ideation process

Securing revenue through project implementation

Piloting the next generation of business transformation

Global Marketing’s newly formed Innovation organization is building new value chains in partnership with Emerging Energy and assessing the entire business globally for automation, margin capture and non-fuels revenue opportunities. To encourage innovative thinking, the business unit also started The Innovation Engine, a formal process to capture and evaluate new ideas. “It has transformed the culture of our organization and is helping us find new ways of enhancing effectiveness, generating revenue and capturing the competitive advantage,” said Chris Gilliland, Manager of Innovation, Global Marketing. “Every leader, every team and every individual now understands that innovation is everyone’s job.” In 2021, two competitions rewarded employees for providing the best solutions to a current business challenge or introducing an untapped opportunity. The ideas with long-term, transformational impacts are given to teams to build out.

35%

$4+ million

of U.S.-based marketing employees participated in the competitions

value of new ideas

The effort has resulted in business opportunities such as piloting Amazon Web Services Panorama, a machine-learning application that transforms video imagery into actionable data enabling streamlined retail operations and increased foot traffic in high-margin areas. “Our inclusive efforts to ignite transformational thinking and expand the value we provide continue to drive us to be the employer and supplier of choice,” said Pam McGinnis, Vice President, Global Marketing.

76 branded marketing site PLEASANT HILL, CA

INNOVATION

OUR CULTURE

EMPLOYEE EXPERIENCE

INNOVATION

TOTAL REWARDS

CELEBRATING SUCCESS

LABOR AND EMPLOYEE RELATIONS

Total Rewards

Phillips 66 Wellness Center HOUSTON, TX

PHILLIPS 66 2021 HUMAN CAPITAL MANAGEMENT REPORT

Encouraging physical, social, financial and emotional well-being

TOTAL REWARDS

OUR CULTURE

EMPLOYEE EXPERIENCE

INNOVATION

TOTAL REWARDS

CELEBRATING SUCCESS

LABOR AND EMPLOYEE RELATIONS

Investing in Our People At Phillips 66, we invest approximately $2.5 billion annually in Total Rewards to attract, inspire and engage our people. Our programs are strongly aligned with our vision and strategy. Our benefit programs are focused on total well-being — physical, social, financial and emotional. We benchmark our Total Rewards annually to ensure our programs are competitive with our peers. In 2021, we deployed a two-part survey to solicit employee feedback on our Total Rewards. The results allowed us to customize our offerings to better appeal to our diverse, multigenerational workforce.

Phillips 66 Headquarters HOUSTON, TX

TOTAL REWARDS PHILOSOPHY We leverage our offerings to bring out the best in our people, all of whom successfully execute our strategy to help us maximize shareholder value. The key tenets to our philosophy are: • • • •

Compensate all employees equitably regardless of race, gender or other personal characteristics Pay for performance Provide competitive offerings aligned with market practice Be responsive to the priorities of our evolving workforce

Compensation at a glance Our compensation programs are a principal tool to attract and engage our people.

$162,000 in total compensation and benefits for our median employee

COMPETITIVE

PERFORMANCE-BASED

EQUITABLE

Benchmarked against our industry and the broader market

Annual Variable Cash Incentive Program (VCIP) for eligible employees

Adverse impact analysis

Reviewed annually

Restricted Stock Unit (RSU) Program for eligible employees

PHILLIPS 66 2021 HUMAN CAPITAL MANAGEMENT REPORT

Disparity reviews Periodic pay equity reviews

Comprehensive Benefits at a glance The benefits we provide are selected to support the total well-being of our people and their families.*

Physical Well-Being 1. Comprehensive medical, dental and vision coverage 2. Well-being incentive program 3. Onsite wellness centers

Social Well-Being 1. Paid volunteer days for eligible employees 2. Matching gift and volunteer grant programs 3. Dependent scholarships

94%

67,000

212

employees enrolled in medical plans (U.S.)

volunteer hours

$4 million

$6.2 million

dependent scholarships awarded

paid out under well-being incentive and fitness reimbursement programs

donated to organizations through our matching gift and volunteer grant programs

Financial Well-Being 1. Robust savings plan match

Emotional Well-Being 1. Resources for Living — employee assistance program

2. Pension plan for all employees 3. Financial coaching services 4. Company Health Savings Account (HSA) contribution up to $1,000

2. Parental leave and adoption assistance 3. Generous time-off programs 4. Comprehensive behavioral health benefits

$138+ million $385,700

2.1 million

in success share and savings matches

vacation and 19/30 work schedule hours used

average savings plan balance at the end of the year

$8.4 million 2,000+ contributions to HSA accounts

employees utilized company-provided financial coaching resources *Unless specified, U.S. only, subject to collective bargaining agreements Based on 2021 data

TOTAL REWARDS

OUR CULTURE

EMPLOYEE EXPERIENCE

INNOVATION

TOTAL REWARDS

CELEBRATING SUCCESS

LABOR AND EMPLOYEE RELATIONS

ENHANCING TOTAL REWARDS The world events of 2020 and 2021 brought additional stress to our employees’ lives, and we wanted to know how we could ease these burdens through our Total Rewards. We sought employee feedback through the Your Personal Priorities surveys, giving our employees the chance to tell us about their needs across 19 dimensions, including career advancement, medical illness, dependent care and personal safety.

13,000

16,000+

Surveys

Responses

Comments

We reviewed thousands of responses, which allowed us to develop and present options to enhance our rewards through a second employee survey. Our employees’ preferences directly shaped the significant enhancements to our Total Rewards in 2021 and 2022.

2021 Rewards Enhancements at a glance

WHAT WE HEARD

WHAT WE DID

Employees value time with their families.

We increased vacation allowance for employees with fewer than five years tenure and increased vacation rollover by one week for all employees.*

They value the ability to effectively manage work and their personal lives. Retirement planning is important. Employees highly value our retirement programs, which include a pension and savings plan, but they would like more retirement planning assistance.

Well-being is all-inclusive. Well-being is more than just physical. It includes social, emotional and financial security.

Employees value a career at Phillips 66. Employees are building valuable careers with Phillips 66 but need additional flexibility to meet the demands of everyday life.

*Excludes U.S.-represented employees

PHILLIPS 66 2021 HUMAN CAPITAL MANAGEMENT REPORT

We increased the 401(k) savings match from 6% to 8% and began conducting well-being weeks each quarter, bringing in external experts to provide education on financial, physical, emotional and social well-being. We simplified the well-being program and enhanced offerings to provide monetary incentives for things like personal enrichment courses, safety certifications, volunteer activity fees, emotional well-being apps and home fitness equipment. We began piloting workplace flexibility to allow eligible roles to work remotely one day per week.* We enacted a workday flexibility policy for incidental remote work.

FERTILITY BENEFITS HELP FAMILIES Phillips 66 strives to support our people through all of life’s changes. So in 2018, we expanded our financial support for fertility benefits. In 2022, we introduced Progyny, a service that provides dedicated personal care advocacy to our people and their families through their fertility journeys. We also offer coverage for fertility preservation to ensure our people can expand their families when the time is right for them. It is our priority that the experience for each employee seeking fertility assistance be robust and tailored to their unique needs.

Honoring a Legacy At Phillips 66, the energy we provide helps communities thrive. One Midstream employee, Chad Alan Foster, demonstrated this by helping found a charity to provide bikes for kids in need in Hutchinson County, Texas. He was an outdoor enthusiast who enjoyed camping, mountain biking, and both water and snow skiing. Although he passed away in 2017, Midstream employees carry on his legacy and love of the outdoors by spending time volunteering to maintain the Chad Alan Foster Memorial Trail System in Borger, Texas.

Chad Alan Foster

Memorial Trail System BORGER, TX

TOTAL REWARDS

OUR CULTURE

EMPLOYEE EXPERIENCE

INNOVATION

TOTAL REWARDS

CELEBRATING SUCCESS

LABOR AND EMPLOYEE RELATIONS

Celebrating Success

Global town hall at headquarters HOUSTON, TX

PHILLIPS 66 2021 HUMAN CAPITAL MANAGEMENT REPORT

Raising the bar on what it means to deliver exceptional results

CELEBRATING SUCCESS

OUR CULTURE

EMPLOYEE EXPERIENCE

INNOVATION

TOTAL REWARDS

CELEBRATING SUCCESS

LABOR AND EMPLOYEE RELATIONS

Recognizing and Rewarding Our High-Performing Organization To enhance our culture of high performance, we believe it is critical to reflect on and acknowledge outstanding results to reinforce what great looks like. Recognition is delivered in both financial and nonfinancial ways. Our compensation programs underpin our pay-for-performance culture and provide the ability to recognize and reward exceptional performance. This includes promotions, annual bonus adjustments, restricted stock units and special recognition awards. From a nonfinancial perspective, we recognize our employees through development assignments, private or public acknowledgment, and other celebratory events. The exceptional results we achieve are recognized internally through our annual Golden Shield Awards program and externally through industry awards and accolades. GOLDEN SHIELD AWARDS The Golden Shield Awards are the company’s highest honor. The annual program celebrates outstanding employee performance that delivers superior results for the company while demonstrating our values and the principles of OEIA. Team and individual contributions are nominated through a peer-based system, and employees are encouraged to submit nominations in categories built around our business strategies, values and innovation. The program culminates in an annual ceremony to publicly celebrate the winners’ achievements. Winners and nominees are also celebrated at a local level within their business units.

369

nominations

winning teams