2022 Sustainability Report

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Sustainability 2022 REPORT


ON THE COVER Associated Petroleum terminals at Humber Refinery NORTH LINCOLNSHIRE, UNITED KINGDOM

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Our stakeholders enable us to fulfill our vision and execute our strategy. Reaching out and listening through open lines of communication to build trust is a priority for us. Power Ahead marketing conference LAS VEGAS, NV

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We recognize the importance of cybersecurity and have comprehensive policies, standards and controls to protect the company systems, information and customer data. Beaumont Terminal NEDERLAND, TX

PHILLIPS 66 2022 SUSTAINABILITY REPORT


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We are committed to helping the world address climate change. We have meaningful, achievable and comprehensive 2030 and 2050 greenhouse gas (GHG) emissions reduction targets.

To Our Stakeholders

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Our Approach to Sustainability

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Our Businesses: 4 Today and Tomorrow

San Francisco Refinery RODEO, CA

Environment and Safety 16 Governance 38 Task Force on Climate-related Financial Disclosures Analysis (TCFD)

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Stakeholder Engagement 54 Performance Data

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Find Sustainability Accounting Standards Board Disclosures (SASB), company policies, key governance documents and related information on the Phillips 66 Supplemental Information site.

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Water is essential. We are responsibly managing this critical natural resource by prioritizing projects that improve efficiency and decrease our water footprint. Ponca City Refinery PONCA CITY, OK

CONTENTS

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To Our Stakeholders, Each year, as we report our sustainability efforts, we are afforded a chance to reflect on our successes and acknowledge the work that still lies ahead. On May 1, 2022, we celebrated 10 years of providing energy and improving lives at Phillips 66. It's been a decade of progress built on our nearly 150-year heritage. Our high-performing organization stands on our values of safety, honor and commitment and remains focused on operating excellence, growth, returns and distributions. We are experts in making and moving the energy of today, and we are motivated by the opportunities we see all around us to optimize our businesses to thrive as energy systems evolve. That's why we are strengthening our core businesses, expanding our digital capabilities, using technology to improve operating efficiencies and transforming our organization to increase productivity. We have ambitious goals, and we’re taking deliberate steps to achieve them. You’ll also read in this report about our Emerging Energy group, introduced in 2021, and its focus on renewable fuels, batteries, carbon capture and hydrogen. You will also read about Rodeo Renewed, which is transforming our San Francisco Refinery in Rodeo, California, into one of the world's largest renewable fuels plants. Here, we detail how, in the United Kingdom, our Humber Refinery is an example of the future of refining. Its sustainable aviation fuel is now powering flights for British Airways, and it stands poised to be the first refinery in the world to use a promising new carbon capture technology. These projects and others — like our investments in the U.S. battery chain and our joint venture to build a network of hydrogen fueling stations in Europe — are tangible steps toward our 2030 and 2050 GHG emissions reduction targets. As we move forward, we will strive to be capital-disciplined, energy efficient and supportive of our stakeholders. Throughout this report, you'll read about how we're working with new and existing companies, bringing fresh perspectives and finding creative solutions to the challenges of our time. Innovation is part of who we are, and it is driven by our employees. They are empowered to think big, try new things and develop solutions that advance our priorities and position our company for long-term resilience.

Greg Garland

This year, as we transition CEO leadership at Phillips 66, we are all guided by our vision of providing energy and improving lives, inspired by our culture and values, and intently focused on being the best operator in the business. Thank you for your interest in Phillips 66. We welcome your feedback. In safety, honor and commitment,

Greg Garland

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PHILLIPS 66 2022 SUSTAINABILITY REPORT

Mark Lashier

Mark Lashier


Our Approach to Sustainability Sustainability shapes how we define and execute our strategy which supports the long-term resilience and competitiveness of the company. It is organized around operating excellence, environmental stewardship, social responsibility, governance and financial performance. Our approach has enabled us to deliver on our vision to provide energy and improve lives, and to drive shareholder value since our start in 2012. ABOUT THIS REPORT Phillips 66 has published annual sustainability metrics and information on our website since the company was founded in 2012. This year’s report continues that transparency with critical performance data, the inclusion of feedback from our stakeholder engagement programs, details on our governance, oversight, policies and programs, as well as acknowledgment of our achievements and descriptions of our investments and resources, all of which are vital to our company's long-term sustainability. We have assessed our operations against the Sustainability Accounting Standards Board (SASB) materiality criteria for Refining, Marketing and Midstream, addressing those most relevant to our business and stakeholders, and the Global Reporting Initiative (GRI) standards. SASB and GRI information is included on the Phillips 66 Supplemental Information website. We also provide analysis and disclosures based on the latest version of the Task Force of Climate-related Financial Disclosures (TCFD) framework. In compiling this report, we considered industry trade association publications, including sustainability reporting guidance for the oil and gas industry published by Ipieca, the American Petroleum Institute and the International Association of Oil & Gas Producers. Unless otherwise explicitly stated, this report covers Phillips 66's performance in 2021 and focuses on outcomes from our operated assets, including our master limited partnership, Phillips 66 Partners LP, and WRB Refining LP, an operated joint venture. Chevron Phillips Chemical Company LLC (CPChem) and DCP Midstream, LLC publish sustainability reports on their websites for interested readers. A glossary of our terms can be found in the Performance Data section of this report.

Ferndale Refinery FERNDALE, WA

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We are providing energy and finding lower-carbon ways to meet the world's energy demands and power human progress toward tomorrow.

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We work to meet the world's growing energy needs and improve lives across the globe. Through our diverse portfolio of assets in our Midstream, Chemicals, Refining, and Marketing and Specialties businesses, we manufacture, transport and market products that drive the global economy. Our company and our industry have an important role in people's quality of life every day. We work to provide affordable, reliable energy while also positioning Phillips 66 for long-term competitiveness. We have an inclusive culture that promotes innovation and delivers value for our stakeholders. We recognize the need for investments to address climate challenges. This is why we're using our existing infrastructure and capabilities along with our research into emerging energies and renewables to help us thrive in the energy transition. ACHIEVING LONG-TERM CHANGE We are committed to helping the world address climate change. In 2021, we set measurable, impactful and attainable targets for GHG emissions intensity reductions. By 2030, we plan to reduce Scope 1 and Scope 2 emissions intensity from our operations by 30% and Scope 3 emissions intensity of our energy products by 15% below 2019 levels. In 2022, we added a goal to reach a 50% companywide reduction in Scope 1 and 2 GHG emissions intensity by 2050. Our commitment to a lower-carbon future includes our investment in technology to improve our assets, products and processes for increased efficiency and the ability to capitalize on emerging possibilities as the energy market transforms. We recognize our employees' skills will evolve during the energy transition. Please refer to our Stakeholder Engagement section for more information about our approach to a just transition. Our compensation plan is aligned with these priorities, and, in 2021, we increased the weight of environmental metrics in calculating our annual incentive program payouts. According to the U.S. Energy Information Administration (EIA), global energy consumption is projected to increase by almost 50% by 2050, with petroleum and other liquid fuels remaining the main source of that energy. Achieving long-term GHG emissions reductions is ambitious and will require changes at Phillips 66, throughout our industry and in the rest of the world. The effort will also require significant shifts in consumer behavior, and supply chains will need to adjust. We believe that national policies are needed to spur investment in lower-carbon infrastructure and technology development. While petroleum and other liquid fuels will still be the main source of energy in 2050, renewables will likely be the fastest-growing energy source.

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PHILLIPS 66 2022 SUSTAINABILITY REPORT

OUR POSITION ON CLIMATE CHANGE Phillips 66 recognizes the need to address climate change, and we know that access to energy is an important part of the solution to many of the world's major challenges. We develop affordable energy solutions to promote human progress and economic growth while also advancing climate change solutions. The company supports global action to reduce GHG emissions. Our approach is to improve the efficiency of our diversified and resilient operations and make investments to meet the world’s evolving energy needs while advancing a lower-carbon future. Phillips 66 supports climate policy that: •

• • •

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Offers market-based, economywide solutions that are fuel- and technologyneutral for all energy sources to facilitate the meaningful GHG emissions reductions that are most beneficial and least costly to society Balances economic, environmental, energy security and local community needs Rationalizes overlapping policies or programs Ensures that energy producers, manufacturers and suppliers are responsible for their direct emissions Recognizes and appropriately accounts for early or voluntary actions Makes any regulatory cost, and associated climate benefits, transparent to the consumer Promotes fundamental public research at the pre-commercial stage to advance viable energy solutions


2021 Financial Performance As part of the nation’s critical infrastructure, we navigated a challenging economic landscape while continuing to safely provide reliable, abundant, accessible and affordable energy. We funded our sustaining capital programs, generated $6 billion of operating cash flow, paid down $1.5 billion of debt, and reported record earnings in Midstream, Chemicals, and Marketing and Specialties. We are an essential part of the value chain for many businesses and industries. In addition to manufacturing transportation fuels, we produce the raw materials used to create health care products and medical devices, including personal protective equipment, pharmaceuticals, plastics and rubber, adhesives and sealants, electronics, smartphones, cars, batteries, agricultural products, and the wind turbines and solar panels that capture alternative energy. The petroleum coke we produce is part of the global supply chain for electric vehicles (EVs), and it also enables steel recycling. Our lubricants reduce friction to improve efficiency and cool EV battery packs.

WEB-EXCLUSIVE VIDEO Our Value Chain AT A GLANCE

Capital Investments Our $1.9 billion 2022 capital program includes $916 million for growth capital, 45% of which supports lowercarbon opportunities. We're also planning to invest $1 billion in energy-efficiency projects over the next decade.

$13+ billion

$1.9 billion

in capital investments over the past five years

in capital investments in 2022

For more details on our assets and operations, read the Year in Review. Financial information is available on the Phillips 66 Investors site.

Bayway Refinery LINDEN, NJ

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Emerging Energy In 2021, we launched our Emerging Energy organization. Our team, from various disciplines, is focused on executing our lower-carbon strategy by commercializing and implementing new technology within our operations and portfolio of assets and increasing renewable power usage. The team concentrates on four key areas: building on existing businesses to become a market leader in renewable fuels, participating in the battery value chain, establishing a competitive position in carbon capture and participating in low-carbon hydrogen markets.

Global Specialties Provides Essential Products Our Global Specialties business brings value to our diversified portfolio and vertical integration between refining and petrochemical processes. We refine and sell specialty products, including fuel coke, premium coke, solvents and polypropylene, all of which contribute to improving the quality of life worldwide. We are the only producer and marketer of specific grades of petroleum coke, which are used in manufacturing steel, lithium-ion batteries, aluminum, titanium dioxide and specialty graphite products. While making clean products, our Bayway facility in Linden, New Jersey, also upgrades refining gas byproducts to make polypropylene resin. Polypropylene is recyclable and used in automotive components, appliances, carpeting, and health care and hygiene products.

AT A GLANCE

EV Specialty Products Our products can be found in all types of vehicles.

Paint, Adhesives

Fuel Coke, Hexane, Heptane, Odorless Mineral Spirits

Glass

Carpet, Cable Insulation, Nylon

Dashboard

Polypropylene, Cyclohexane, Sulfur

Polypropylene, Cyclohexane

Fuel Coke Aluminum Body

Anode Coke

Bumper

Polypropylene

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Steel Body

Battery

Needle Coke, Odorless Mineral Spirits

Anode Needle Coke Tire/Rubber

Sulfur, Hexane


Research and Innovation Phillips 66 is one of the few downstream energy companies with in-house research and development capabilities via our Energy Research & Innovation (ERI) organization. In addition to supporting current operations, this team supports a lower-carbon future by helping to develop and commercialize new technologies. The scientists and engineers at our Phillips 66 Research Center in Bartlesville, Oklahoma, work to enhance the safety and reliability of our operations and to develop air, water and energy solutions, including battery technology and solid oxide fuel cells (SOFCs), which can be used for electricity storage. Phillips 66 has 399 active U.S. patents in specialty carbon, premium coke, low-carbon hydrogen, solid oxide fuel cells, carbon capture, organic photovoltaics and biofuels, as of Dec. 31, 2021. SOLID OXIDE FUEL CELLS Phillips 66 continues to progress its solid oxide fuel cell technology, holding nine U.S. patents and 29 U.S. pending patent applications in our SOFC's intellectual property portfolio. • • • •

We published our patented SOFCs fabrication technique and research data in the Journal of the American Ceramic Society We installed a field demonstration of this technology at a Phillips 66 pipeline that has been in operation since 2020 We anticipate a second application will be installed at a Phillips 66 marketing site in 2022 In 2021, we announced that Phillips 66 was awarded a $3 million grant from the U.S. Department of Energy to advance high-performance reversible SOFCs

Phillips 66 Research Center BARTLESVILLE, OK

AT A GLANCE

SOFCs Explained SOFCs generate electricity efficiently by oxidizing a fuel, such as natural gas, through electrochemical reactions rather than combustion. SOFCs can generate electricity at high efficiencies from an abundant, reliable and inexpensive fuel source. They produce no noise, have a 50% lower-carbon footprint than conventional power plants, have no combustion emissions and are an ideal technology for carbon dioxide (CO2) capture. SOFCs also can be paired with solar- or wind-generated power, ensuring reliable energy even when the sun is not shining or the wind is not blowing. Their quiet, compact, modular design makes them a convenient source of on-site power for homes and businesses.

Single cell Air Fuel SOFC stack

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Renewable Diesel and Alternative Fuels Phillips 66 provides transportation fuels that move people and goods, and as we push forward into a lowercarbon future, we are prioritizing renewable fuel projects that leverage existing infrastructure. We will process waste fats, cooking oils and other renewable feedstocks into transportation fuels. In 2021, we began producing renewable fuels from vegetable oil at our San Francisco Refinery in Rodeo, California, and we refine fuel from used cooking oil (UCO) at our Humber Refinery in North Lincolnshire, United Kingdom. In 2021, we announced that we are securing feedstock for our growing portfolio of renewable fuels projects by investing in Shell Rock Soy Processing, a new soybean-processing plant in Iowa. Additionally, we support future renewable diesel production through our agreement with New Rise Renewables in Nevada. CONVERTING OUR SAN FRANCISCO REFINERY The Rodeo facility's focus on energy efficiency was recognized in early 2020 when it became the first crude oil refinery in California to earn an Environmental Protection Agency (EPA) ENERGY STAR certification for superior energy efficiency. Now we're taking the refinery to the next phase. It's being converted to process waste fats, UCO and other renewable feedstocks. When the conversion is complete in early 2024, Rodeo will be one of the world’s largest renewable fuels facilities, able to produce more than 800 million gallons per year (over 50,000 BPD) of renewable diesel, renewable gasoline and sustainable aviation fuel (SAF). The conversion is expected to significantly reduce criteria pollutant emissions from our operations, preserve well-paying jobs and help California meet both its demand for transportation fuels and its environmental goals. To further reduce GHG emissions, the refinery is pursuing other sustainable projects, including solar power to provide electricity to run its processes and exploring carbon capture. Phillips 66 made a final investment decision in 2022 to move forward with Rodeo Renewed after the project received approval from Contra Costa County.

San Francisco Refinery RODEO, CA

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AT A GLANCE

Rodeo Renewed The Rodeo Renewed project will help California meet regional demand for renewable and conventional transportation fuels while assisting the state in achieving its environmental goals, including carbon neutrality by 2050. Projected environmental and economic results are highlighted below.

EMISSIONS (Once converted)

80% sulfur oxides (SOX)

20%

33% nitrous oxides (NOX)

particulate-matter emissions (PM10)

65% fewer life-cycle carbon emissions, the equivalent of taking 1.4 million cars off the road each year

160 million

800 million

gallons of water saved per year

gallons of renewable transportation fuels produced per year, including:

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Renewable diesel: a high-cetane fuel that runs in all diesel engines and has a lower-carbon intensity than conventional diesel Sustainable aviation fuel: a lower-carbon intensity fuel alternative for the airline industry

FEEDSTOCKS

JOBS IN CONTRA COSTA COUNTY

We will have the capability to process a variety of renewable feedstocks, including:

650

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Fats and greases Used cooking oil Vegetable oils

full-time and contractor jobs preserved through the conversion

500 construction jobs to be created and filled using local union labor

~4 million projected construction work-hours

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BRINGING MORE RENEWABLE FUELS TO CALIFORNIA DRIVERS Biodiesel and renewable diesel are both renewable fuels but have different manufacturing processes. Biodiesel's process requires it be blended with traditional diesel before being used in an engine. Renewable diesel can be used as a drop-in fuel. Our Richmond and Sacramento terminals in California have blended up to 20% biodiesel since 2018. We also blend biodiesel at our Colton Terminal in Bloomington, California. In 2021, we added capability to sell renewable diesel in almost 600 76 branded stations in California. ADVANCING SUSTAINABLE AVIATION FUEL SAF is a lower-carbon intensity aviation fuel produced from renewable feedstocks such as waste oils, fats, greases and vegetable oils. Because it is a drop-in fuel, it works in existing aircraft engines and airport fuel infrastructure. Phillips 66 is a major U.S. refiner and supplier of petroleum jet fuel and avgas, and, in 2021, we signed a multiyear supply agreement with British Airways to provide SAF directly to the airline through existing pipelines. Also in 2021, we signed a memorandum of understanding with Southwest Airlines to advance the commercialization of SAF in the United States. These agreements leverage our history of innovation and our expertise in refining, distribution and technical commercialization.

76 branded station PLEASANT HILL, CA

ENABLING ADOPTION OF EVs Lithium-ion batteries help power products from EVs to millions of smartphones and other consumer electronics, and the need for these batteries is projected to experience sharp growth over the coming decades. We are a market supplier for the coke used as a precursor in lithium-ion batteries, and our battery program is focused on improving existing materials. As part of this effort, we are working to find ways to incorporate readily available, responsibly sourced materials that have the potential to extend the driving range for EVs. In 2021, we acquired a 16% stake in NOVONIX, and we have an agreement to advance the production and commercialization of next-generation anode materials for lithium-ion batteries. The agreement enables both companies to leverage leading industry positions, existing intellectual property, and research and development capabilities to drive commercial development of optimized feedstocks and lithium-ion anode materials with reduced carbon-intensive processing. We’re also part of a technical collaboration with battery-maker Faradion to develop lower-cost and higherperforming anode materials for sodium-ion batteries. This energy storage technology has an advantage because it uses sustainable and widely available materials. The collaboration is expected to leverage our experience developing specialty carbon materials and Faradion’s work as a leader in sodium-ion battery technology. Applications for this technology include mobility, stationary storage, backup power and energy in remote locations. In 2022, we signed a letter of intent with FreeWire Technologies in support of its first EV charging program in the United States. The program will bring consumers electric fueling stations that meet their expectations for highspeed, on-the-go charging. In addition to batteries, we produce high-performing lubricants formulated to meet the unique needs of EVs. In 2021, we launched the new Phillips 66 e-Shield line of products, including system fluid, grease and coolant. 12

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CAPTURING CARBON FROM OUR OPERATIONS Carbon capture and storage (CCS) could enable decarbonization across manufacturing and heavy industry. International Energy Agency (IEA) projections indicate that, by 2040, CCS could lower global emissions by as much as 15%. Without this technology, the United Nations Intergovernmental Panel on Climate Change estimates global decarbonization efforts could be twice as costly. Phillips 66 joined several other companies in 2021 in expressing support for the large-scale deployment of CCS technology in and around the Houston, Texas, industrial area. Together, these companies and others in the region could capture and store up to 50 million tons of CO2 per year by 2030 and about 100 million tons per year by 2040. In 2021, the U.S. Department of Energy awarded Phillips 66 a grant to perform an initial engineering design study for employing CCS technology at the hydrogen production unit at our San Francisco Refinery in Rodeo, California. We are also evaluating projects to decarbonize our operations at other locations, including the Humber Refinery in the United Kingdom. Humber Refinery NORTH LINCOLNSHIRE, UNITED KINGDOM

USING HYDROGEN AS A FUEL Hydrogen is important in a number of manufacturing and agricultural applications. Phillips 66 is evaluating ways to invest in using hydrogen in our operations and expanding consumer choices as a transportation fuel. Hydrogen fuel can be produced from 100% renewable energy, including hydropower, wind, sun, biomass and geothermal sources, and when hydrogen is used to power fuel cell electric vehicles, the emissions are entirely CO2-free. In 2022, we announced our commitment to form a joint venture with H2 Energy Europe to develop as many as 250 retail hydrogen refueling stations in Germany, Austria and Denmark by 2026. The partnership leverages the strength of our existing JET brand and will also utilize new locations on major transportation routes. We anticipate demand for hydrogen will, in part, come from H2 Energy’s ownership in Hyundai Hydrogen Mobility, a European retail and distribution partner for Hyundai's commercially available heavy-duty fuel cell truck.

250 projected hydrogen refueling stations in Europe by 2026

Our Swiss joint venture, Coop Mineraloel AG, in which Phillips 66 has a 49% interest, already has a hydrogen fueling program and has worked with Hyundai on the world’s first fleet of hydrogen-powered trucks.

Coop hydrogen fuel station HUNZENSCHWIL, SWITZERLAND

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Building a Lower-carbon Value Chain Phillips 66 Limited, a U.K.-based, wholly owned subsidiary of Phillips 66, is pursuing projects, technologies and partnerships that support decarbonization and the U.K. government’s 2050 net-zero ambitions. We are creating the refinery of the future by producing lower-carbon fuels from waste and reducing the carbon intensity of our manufacturing processes. We are also contributing to the growth of a lower-carbon value chain by supplying battery-grade coke to power EVs, supporting EV charging stations and developing hydrogen refueling networks. FROM USED COOKING OIL TO USABLE FUEL In 2017, the Humber Refinery was the first refinery in the United Kingdom to produce high-performing biofuels at scale when we started using UCO in our refining processes. The decarbonization benefit of using waste oil in refining is significant. Life-cycle emissions are 90% lower with UCO than with conventional fuels. Through co-processing waste oils and other renewable feedstocks, Humber produces a broad range of products, from battery coke to bio-propane, bio-gasoline and SAF. UCO unit at Humber Refinery NORTH LINCOLNSHIRE, UNITED KINGDOM

DEVELOPMENT FUELS In 2021, the Humber Refinery became the United Kingdom's first at-scale development fuels processor. Development fuels are made from sustainable waste, residues or substances of non-biological origins. We are finding ways to convert problematic waste streams into lower-carbon fuels.

SAF testing at Humber Refinery NORTH LINCOLNSHIRE, UNITED KINGDOM

SUSTAINABLE AVIATION FUEL Humber is the first refinery in the U.K. to produce SAF at scale. We are a member of the Department for Transport’s Jet Zero Council Delivery Group and support U.K. government plans for a future SAF mandate and a business model for investing in advanced waste-to-jet-fuel projects. In 2022, we made our first delivery of SAF to British Airways from our Humber Refinery as part of a multiyear supply agreement. In recognition of this achievement, Humber Refinery received the Humber Renewables award for Green Innovation in 2022. RENEWABLE DIESEL Alongside our work to provide the lower-carbon fuels of tomorrow such as hydrogen and EV batteries, we are also focused on decarbonizing the existing road fleet. JET Renewable Diesel is a fuel that is chemically similar to conventional fossil-fuel-based diesel, but it's derived from biomass sources such as used cooking oil, fats, greases and vegetable oils, resulting in a fuel of significantly lower-carbon intensity. JET Renewable Diesel is independently verified as meeting Europe's BS EN 590 diesel fuel specifications and specific sustainability and supply chain criteria. This qualifies it as a renewable transportation fuel under U.K. law. 14

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EV BATTERY COKE Humber Refinery is the only European facility producing battery-grade coke, which forms a critical component for batteries in EVs and consumer electronics.

Coker unit at Humber Refinery NORTH LINCOLNSHIRE, UNITED KINGDOM

By 2024, all U.K.- and EU-produced EVs are required to have at least 55% of the vehicle content by value produced domestically. EV CHARGING We are supporting decarbonization of the U.K. car fleet through the launch of JET Charge ultra-rapid charging service. This service debuted at our JET Refinery service station in Immingham, providing high-speed chargers for EV drivers. JET Charge EV charging unit at New Park service station DARLINGTON, UNITED KINGDOM

CARBON CAPTURE AND STORAGE Humber Refinery sits in the largest GHG-emitting industrial cluster in the United Kingdom and can play a pivotal role in not only reducing its own carbon footprint but also the wider region's. Humber Zero We are a leader in Humber Zero, a regional CCS project capable of removing 8 million metric tons of CO2 per year by 2030. Phillips 66 and combined heat and power company VPI Immingham are investing a total of £12.5 million to advance the Humber Zero project. Innovate UK Industrial Strategy Challenge Fund is matching that investment. RENEWABLE HYDROGEN Phillips 66 believes the U.K. has the potential to be a global leader in low-carbon hydrogen production, with exciting applications in transportation fuels, home heating, power storage and decarbonizing industrial processes that require energy inputs at levels electrification cannot achieve. Gigastack Humber Refinery is part of a consortium leading the Gigastack project to generate renewable hydrogen using renewable power from wind, which will be used to heat the refinery's furnaces and reduce fuel consumption. The refinery has an existing industrial-scale hydrogen infrastructure, mitigating the risks and costs associated with low-carbon hydrogen projects. We are working toward a low-carbon hydrogen refueling network capable of supplying hard-to-decarbonize elements of the transportation sector, such as heavy goods vehicles and ships. By leveraging Gigastack, we can deliver low-carbon hydrogen produced using wind power for vehicles not suited to battery technology. OUR BUSINESSES: TODAY AND TOMORROW

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Environment and Safety

Ponca City Refinery PONCA CITY, OK

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We take the time to work safely — every job, every day — to protect people and the environment.

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In 2021, sustainability priorities were integrated into key company systems, including capital guidelines, Health, Safety and Environmental Management System (HSEMS) assessment, new hire orientations and asset acquisitions. We operate in a highly regulated industry and comply with the many local, state and federal regulations that affect our operations, including those concerning air emissions, water effluent and solid waste-handling. We strive to eliminate environmental events, and we work to prevent releases of hydrocarbons or chemicals. Our Health, Safety and Environment (HSE) policy defines our commitment to protecting our employees, contractors, customers and communities while achieving our goals for growth, returns and distributions. We integrate our health, occupational safety, process safety and environmental stewardship principles throughout our businesses, with a commitment to continuous improvement that minimizes our potential impact on our neighbors and the environment. We also consult with stakeholders on environmental issues.

Health, Safety and Environmental Management Our HSE policy is the foundation for our HSEMS. The HSEMS creates environmental awareness internally and is the framework for consistently monitoring our environmental performance and ensuring our operations minimize their impact on the environment. Our HSEMS guides our entire workforce, including labor and management, experienced workers, new hires, contractors and subcontractors. It provides the framework to reduce risks and improve performance while establishing a continuous improvement process for policy implementation, leadership expectations and core values. This focus on operating excellence facilitates HSE performance and compliance with key standards, procedures and guidelines. Our rules apply to all business units and are often stricter than regulatory requirements. Core standards include reporting, metrics, crisis management, emergency response, due diligence, incident investigation, risk assessment and corporate auditing. Our rigorous auditing protocols enable us to assess our performance and progress frequently. On-site inspections are conducted by both third-party auditors and Phillips 66 internal auditors trained to recognize health and safety best practices. All deviations are investigated and corrected. All Phillips 66 sites have HSE controls and practices, along with HSE management and staff dedicated to excellence and risk mitigation. Our Senior Vice President of HSE and Projects has direct responsibility for the HSEMS and reports directly to our Chief Executive Officer. HSE considerations are embedded into every task and business decision. Our business units have internally audited multiyear plans for environmental improvement. Our dynamic "Plan-Do-Assess-Adjust" approach allows our HSEMS to be proactive in making adjustments to drive environmental progress. Ferndale Refinery FERNDALE, WA

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Our Environmental Steering teams drive site-level improvement, track and review key metrics, and develop improvement plans. Those plans are shared with corporate leadership to highlight best practices. Leadership directs efforts to reduce environmental events and increase work practice consistency. Additionally, peer reviews of air permits and active environmental networks allow subject-matter experts in areas such as air monitoring, leak detection, waste management and water treatment to work across functions. They share best practices and lessons learned to drive sustainable improvement. Business units are also adopting this method.

From 2017 to 2021, we invested approximately $5 billion in sustaining capital, which includes environmental protection projects. In 2021, we invested over $800 million in safety, environmental and reliability projects, with approximately $500 million targeted specifically for refining reliability, safety and environmental projects. These investments improve our operating standards and procedures, business assurance programs, and companywide asset maintenance. We use energy and other resources efficiently, make strategic investments in research and development, and support habitat and conservation programs. We also focus on investments in technology to improve our assets, products and processes to increase efficiency.

AT A GLANCE

Awards and Recognition

THREE REFINERIES ACHIEVED AFPM SAFETY AWARDS AFPM bestowed its safety recognition awards for Distinguished Safety Award, Distinguished Safety Award, the industry's highest recognition to: the industry's highest recognition to: Sweeny Refinery Sweeny Refinery

Elite Gold Safety Award, top 1% of industry performance: Elite Gold Safety Award, Billings Refinery top 1% of industry performance: Elite Silver Safety Award, topRefinery 5% of industry performance: Billings Bayway Refinery

Elite Silver Safety Award, top 5% of industry performance:

MIDSTREAM SAFETY PERFORMANCE RECOGNITION GPA Midstream Company Safety Award GPA Midstream Perfect Record Award API Distinguished Pipeline Safety Award ILTA International Liquid Terminals Association Platinum Safety Award

Bayway Refinery

31 VPP STAR FACILITIES

SIX ENERGY STAR SITES

OSHA Voluntary Protection Program (VPP) recognition across our Refining, Midstream and Lubricants operations

Refineries that have earned this US EPA certification since 2012

"MOST TRUSTWORTHY COMPANY AWARD" From Newsweek in 2021

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OSHA’S VOLUNTARY PROTECTION PROGRAM Across our Refining, Midstream and Lubricants assets, 31 facilities have Occupational Safety and Health Administration (OSHA) Voluntary Protection Program (VPP) STAR recognition, meaning about half our U.S. employees work at a VPP site. Six contractor companies at our sites also participate in VPP. The STAR recognition is OSHA's highest workplace honor, and to maintain this status, each site must complete selfevaluations every year and undergo an OSHA site inspection every three to five years. In 2021, our Tacoma Terminal in Washington, and our Coke Handling Terminal and Clifton Ridge Marine Terminal in Louisiana all achieved VPP STAR recertification for another five years. ISO CERTIFICATIONS Our facilities follow Phillips 66 quality management systems, and many are certified to International Organization for Standardization (ISO) measures. Some customers require this certification of our polypropylene products and lubricants, and even though we don't certify all units to ISO, our comprehensive process safety event (PSE) and environmental management systems meet or exceed ISO standards. Our Lubricants business conforms to the ISO 14001:2004 Environmental Management System. Five of our lubricants facilities have certification to ISO 14001 and the ISO 9001:2015/IATF16949:2016 Quality Management System Standard. Lubricants Research and Development is accredited to the ISO/IEC 17025 standard for testing and calibration laboratories. Bayway Refinery's polypropylene business in Linden, New Jersey, is certified to ISO 9001:2015 for the design and manufacturing of pellets. We have numerous practices for containing and mitigating loss. Pellets are piped to an on-site storage silo, creating a closed system. From there, the product is blended and fed into rail cars for transportation to customers. We inspect rail cars for operable and closed caps and valves. Environmental performance includes collecting scrap and vacuuming sumps to recycle pellets, preventing plastic pellets from leaving the property. We are prepared with booms and vacuum trucks should a spill occur. Our Bayway facility management and employees are committed to Operation Clean Sweep and support the goal of zero pellet loss. We have also implemented a rail car return policy intended to eliminate the possibility of pellets entering the environment due to unsealed or improperly sealed rail cars returning from our customers. Wood River Refinery’s odorless mineral spirits and benzene business lines in Roxana, Illinois, conform to ISO 9001:2015 Quality Management System Standards. In the United Kingdom, the Humber Refinery is working to transition to the new ISO 14001 standard and is certified to the 2015 version. Polypropylene unit at Bayway Refinery LINDEN, NJ

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Safety Performance Our safety culture, comprehensive HSE policies, management systems and an across-the-board company commitment resulted in an OSHA Total Recordable Rate (TRR) of 0.12 in 2021. That’s 25 times lower than the overall U.S. manufacturing average and lower than the 2021 average in refining and other industries. Our 2021 combined Tier 1 and Tier 2 Process Safety was 0.13, our best-ever performance. 2021 was also a record year for Midstream Operations, as we recorded the safest year in Midstream history: • • • •

Recorded our best TRR ever at 0.03 Achieved two years without an employee recordable injury Set a record for fewest spills and fewest PSEs Added the 17th Midstream facility to our list of operating facilities that are recognized as VPP STAR sites

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

5 4

n n n n n

3

n n

2 1

Food manufacturing Retail trade Construction Motion picture, video industries Electric power generation, transmission, distribution Petroleum refineries Phillips 66

0.12

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

WORKING TOWARD ZERO We are determined to be the energy industry's safest and most reliable company. We believe that a zeroprocess-safety-incident and zero-injury workplace is achievable. We are committed to protecting the health and safety of everyone at our worksites and in the communities where we operate. This priority is embodied in our investment in asset maintenance and integrity and our HSE policies, programs and procedures. We proactively perform focused audits on major work activities such as energy isolation, startup/shutdown activities, turnaround events, procedures and human performance tools. Our business units complete an annual report on risks, including a list of corrective actions to address risks identified and closed during the year. In addition, business unit managers verify compliance with company risk management requirements. The reports are reviewed and signed off by each subsequent level of management. Ultimately, a complete report containing the status of risk items throughout the company is developed, reviewed with the chairman and CEO, and summarized for the Public Policy and Sustainability Committee. Safety and environmental performance are part of our compensation structure for executives and employees. We measure ourselves against the best performers in our industry and target top-quartile performance in safety, environmental stewardship and effective management of unplanned downtime.

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10 LIFE SAVING RULES In conjunction with the HSEMS, our 10 Life Saving Rules program is fundamental to Phillips 66's safety culture. All employees are trained on the rules, which are clear, concise and apply to all routine and critical activities. They enhance safety performance and benefit both individuals and communities by preventing injuries. CONTRACTOR SAFETY We involve our contract companies in planning work to be performed to ensure safe practices. Regular communication at all levels is foundational to achieving our mutual goals. Many of our sites have an established Contractor Safety Alliance. These teams include safety professionals, front-line supervisors and leadership from Phillips 66 and each of our contract companies and business trades. They meet regularly to discuss safety issues, performance and lessons learned. Subcommittee members mentor and onboard new contractors and train them on our 10 Life Saving Rules and other safe work procedures. We have contractor-to-contractor audits to support smaller contract companies. The teams include Phillips 66 employees and several contract company leaders. They reach out to workers and address any barriers to safe work.

Hands-on Learning Leads the Way Safety is our first core value. We seek out impactful ways to keep safety at the forefront. In 2021, the Sweeny Refinery created a hands-on safety training experience for more than 850 employees and contractors. The Safety Days program focuses on improving understanding of the Phillips 66 10 Life Saving Rules and Sweeny's safe work practices. It is facilitated by safety teams and operations and maintenance personnel who bring their front-line perspective to the training. Over five weeks, groups of about 50 cross-functional employees rotate through eight hands-on stations, including energy isolation, fall protection, confined space entry, hazard recognition and live fire extinguisher training. Each station meets requirements for annual refresher training, uses prior incidents as examples, addresses frequently asked questions and allows employees to practice what they've learned. Training stations feature a multilevel scaffold, a lock-out tag-out and work permitting room, access to mobile equipment, and retired process equipment for hands-on practice. Employee feedback was overwhelmingly positive, and this critical training has been key to the Sweeny Refinery achieving excellence in safety performance.

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SHIELD YOUR FUTURE Shield Your Future is a training program for all new employees and contractors. It includes case studies based on real incidents at Phillips 66 and exercises to enhance understanding of safety protocols. These lessons are the foundation and the "why we do what we do" for many of our 10 Life Saving Rules. New employees get materials to review before their first day, and the information is covered as part of orientation. The training is also used as a refresh for existing employees. There are three components of Shield Your Future: 1. Be Aware of Your Actions 2. Stop Work When Unsure 3. Recognize Hazards


STOP-WORK AUTHORITY Two principles that guide all employees and contractors working within our facilities are taking the time to work safely and having the right to speak up and stop work if a safety concern is identified. Everyone working at or visiting our sites is empowered — and required — to stop any work they believe poses a risk to themselves, the people around them or the environment. We train our workforce to "stop when unsure." No employee or contractor will ever experience negative repercussions for using their stop-work authority in good faith, even if it turns out that there wasn’t a hazard; in fact, employees and contractors who speak up when they spot a potential problem are rewarded through the company’s Good Catch program. It’s another way we hold ourselves accountable for everyone’s safety every day. SAFETY MEETINGS, SUMMITS AND TRAINING Each of our sites conducts a monthly safety committee meeting. Employees, managers and union representatives review goals and safety practices. They also audit results and work together to keep an open dialogue focused on continuous improvement. In addition to providing continuing education opportunities, these meetings enable knowledgesharing from experts such as industrial hygienists, safety specialists and process safety representatives. We have more frequent meetings within our field staff groups and perform job safety analyses for each field job. We periodically host large-scale company training summits. This is an opportunity to gather people from every health and safety committee in the company to share best practices, goals and performance milestones. In addition, attendees gain new techniques, skills and knowledge they can implement at their home facility. The summits also encourage union leaders and Phillips 66 management to maintain an open dialogue and speak with a unified voice about safety. We also hold periodic contractor safety summits with all our major contracting companies to set expectations and goals, share best practices, and keep lines of communication open. Each Midstream Region holds a regional contractor summit with its primary and secondary contractors. In 2021, in compliance with COVID-19 restrictions, we held a virtual summit with select primary contractors and contractor mentors.

AUDITS AND INSPECTIONS Our facilities are subject to rigorous internal, industry and external audits and inspections, and our operations are managed to ensure compliance and asset integrity. There are hundreds of audits each year across our operations. External auditing agencies include OSHA and the U.K. Health and Safety Executive, the EPA and U.K. Environmental Agency, U.S. Coast Guard, Pipeline and Hazardous Materials Safety Administration and the Chemical Safety Board. HSE audits are on a predetermined cycle that covers all operations. Additionally, refinery operating excellence audits, insurance risk assessments, trade association assessments and third-party safety audits happen each year. Audits are documented and include a process for communicating results to management and provisions for periodic review and corrective actions. HSE performance is verified through robust assurance processes that involve corporate staff and business unit employees. Each business unit establishes and maintains auditing processes to assess the adequacy and effectiveness of HSE controls and compliance with legal requirements and standards of operation. Joint ventures, partnerships and contractors are all included in the auditing process. We are also involved in numerous industry improvement and standard-setting committees of American Petroleum Institute (API), American Fuel & Petrochemical Manufacturers (AFPM) and the Association of Oil Pipe Lines. Our facilities follow industry-leading quality management systems, and many are certified to international standards. These efforts have made our sector, and specifically Phillips 66, a safety leader among U.S. industries. Through our occupational health and industrial hygiene program, we evaluate our workplaces for health hazards to ensure that we protect everyone at our facilities. Employees and contractors report both actual incidents and near misses that have or could have resulted in injury, property damage or environmental impact. We learn from these situations, identifying and removing the root causes to reduce the risk of recurrence.

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Process Safety Process safety is about ensuring containment of hazardous materials to avoid harming people and the environment. We recognize the need to be proactive and continuously improve. Accordingly, we have identified these focus areas: • • •

Leveraging process hazard assessment best practices across the company, with added emphasis on safeguards to prevent the highest consequence events Reducing the number of events caused by imprecise execution of tasks Improving our learning efficiency and effectiveness

Our active participation in trade associations and benchmarking groups also helps us identify opportunities for our business while advancing overall industry performance. PROCESS SAFETY EVENTS PSEs are unplanned or uncontrolled releases of hazardous material. Safety meeting at Ponca City Refinery PONCA CITY, OK We closely monitor and measure our performance in this area. Phillips 66 works to eliminate PSEs by applying best practices in design, engineering, operations and maintenance. We also perform hazard analyses and use change-management procedures to mitigate risk. We routinely audit our safety, mechanical integrity, operating and maintenance programs. We investigate serious incidents and near misses to develop corrective actions and capture learnings. We create and improve our procedures to ensure employees and contractors are aware of hazards and how to address and mitigate them. Tier 1 and Tier 2 PSEs are defined by the API Recommended Practice 754. Tier 1 PSEs are the most significant type of unplanned or uncontrolled release of material from primary containment. Tier 2 events have lesser consequences than Tier 1 events, yet they are still important. All Tier 1 and Tier 2 events are investigated to determine the underlying causes so we can act to prevent recurrences. Our goal is zero PSEs. In 2021, our Refining business unit had zero energy isolation-related Tier 1 PSEs, and its overall Tier 1 process safety event rate of 0.05 led our industry. Our 2021 companywide PSE Tier 1 and Tier 2 rates were better than the refining industry average rate.

Optimization To thrive in the energy transition, we must focus on efficiencies within our processes and decision making, leverage digital capabilities, and advanced automation. AdvantEdge66 is an enterprisewide digital transformation program focused on utilizing data, artificial intelligence, and machine learning to deliver agility, efficiency and value. Optimizing our current operations is essential to operating a sustainable business. Our Value Chain Optimization Engine effort released nine new tools in 2021. These tools include cloud-based applications that help us improve performance projections, scenario planning and supply comparisons. 24

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Pipeline Control Center BARTLESVILLE, OK

MIDSTREAM DIGITAL INNOVATION Our Midstream Digital Innovation project uses technology to increase operational efficiencies, enhance human performance and safety, and deliver value across dozens of workstreams. As an example, our Deep Learning optimization solution boosts fractionation capacity to maximize throughput. We’ve automated Control Center-operated pipeline startups, shutdowns and steady-state operation to minimize manual inputs, resulting in improved flow rates and higher throughput. This also preserves pipeline integrity by reducing pressure-cycle fatigue. WIRELESS REFINERIES We are adding wireless connectivity to enable smart operations monitoring and utilizing sensors to analyze and alert us to irregularities. This reduces risk, enhances safety and optimizes energy utilization at our refineries. DIGITAL OPERATIONS AND MAINTENANCE We’re enhancing our current systems and operations through our Digital Operations & Maintenance (DOM) program. DOM evaluates new technologies that give us greater visibility into our systems, allow us to find opportunities to optimize our processes and increase efficiency.

Digitizing Operating Procedures and Permits in Refining In 2021, we began a multiyear initiative that will ultimately impact 18,000 refining operating procedures. As part of our DOM project, the first step, completed in 2021, was converting procedures detailed on paper to digital files stored in a cloudbased tool. This allows operators to access and execute procedures from the field using a mobile device. During the second phase, which began in 2021 and will continue through 2023, we are incorporating human factors principles to improve procedures and make them clearer and easier to follow. Cross-functional teams review each procedure to ensure all critical content is included. This work is critical to reducing the risk of procedure-related errors. Data on Tier 1 PSEs reveals that unclear, vague, irrelevant or unfollowed procedures contribute to about 40% of events. Our procedure management initiative is intended to improve our procedures and reduce the risk of errors. Midstream is also piloting this approach. Our Electronic Work Permitting process is live across all sites. The fully electronic system allows refineries to complete routine and major maintenance projects more safely and efficiently, brings consistency, reduces reliance on personal knowledge, improves hazard recognition and increases the overall safety of the permitted work. It includes a leading-edge Hazard Identification and Risk Assessment tool with artificial intelligence technologies to improve safety planning. Another benefit of digitizing these records is eliminating paper use and the associated waste.

APPLICATIONS FOR REFINING COMPETITIVENESS In 2022, we rolled out a new digital workflow tool called Applications for Refining Competitiveness (ARC). Users access ARC through a mobile interface that alerts them when action is needed. The system has increased efficiency, managing more than 14,000 process steps simultaneously. It also improves accuracy by offering users instructions on how to complete tasks.

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DRONE TECHNOLOGY Drones allow us to monitor assets from a safe distance and at various elevations while also allowing pilots to zoom in and take close-up images to identify anomalies. By the end of 2022, we plan to have over 90 trained and qualified drone pilots across our Refining and Midstream organizations. Pilots must meet Federal Aviation Administration and Phillips 66 proficiency requirements by completing the FAA's Part 107 certification and advanced operations training through a third-party drone pilot training company. Some of the applications across our assets are: •

• • •

Inspections, including: Inspection drone at Bayway Refinery – Elevated structures LINDEN, NJ – Tank seals – Flare stacks – Heater stacks – Foam chambers – Environmental conditions – Overhead electrical lines Volumetric measurements such as coke pile volume and tank dike volume Site mapping Support for emergency response

ASSET PERFORMANCE MANAGEMENT Asset Performance Management (APM) provides data and analytics to identify and eliminate reliability issues. In 2021, we completed the APM rollout to all our refineries. Now, with a common platform, data can be accessed in minutes, not hours, enabling dashboards and metrics that drive actions to prevent failures. As a result, we can better prevent unplanned downtime, monitor equipment to optimize utilization and eliminate defects, and track successes.

Improving Operations in Refining Our Advanced Integrated Mechanical Integrity (AIMI) project is improving early detection of corrosion threats at our refineries. In 2021, we completed pilot programs at our Borger and Ferndale refineries, uncovering many opportunities to improve our inspection program and several near-miss inspection findings that were subsequently repaired. This proactive approach reduces lost-profit opportunities and improves safety, environmental and turnaround performance. AIMI takes a risk-based approach to systematically standardize, validate and digitize our design and process information. It improves inspection planning because we are using leading-edge software and analytical tools, communicating across operating groups, improving access to information, linking corrosion threats to specific equipment, and facilitating cross-site sharing of findings. 26

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EMERGENCY PREPAREDNESS We are prepared to respond to emergencies and work with local, state and federal agencies. Our Emergency Response Management System provides a model for building and maintaining crisis management and emergency response plans. At the corporate level, the company maintains a Crisis Management Plan with personnel who can provide practical and prompt support to supplement actions taken in response to an emergency. The company also utilizes Regional Response teams to support businesses during significant emergencies. Incident Management Assistance team drill FERNDALE, WA

Each facility has a written emergency response plan that includes a process for identifying potential emergencies and planning for mitigation and control. We focus on individualized, site-specific training rather than larger-scale general training exercises. Employees are trained for their responsibilities and assignments under each scenario. Drills are conducted frequently and critiqued so plans can be adjusted as needed. Emergency response plans and documents are thoroughly reviewed each year. In our annual emergency response drills, we use realistic scenarios to ensure that our Emergency Response Organization and the communities around our facilities are prepared to respond to emergencies. Participation by local and corporate leaders ensures high standards for training and competence for our on-site first responders. Our teams of first responders protect lives and secure the area in an emergency. We invest in training and sending emergency responders to premier institutions such as the Fire Service Institute at the University of Illinois and the Emergency Services Training Institute at Texas A&M University. We extend this specialized training beyond our first responders, covering the costs for firefighters based near our refineries so they can train alongside our teams. In addition, when we hold drills and training exercises in areas near Native American communities, we also invite tribal representatives to participate. We believe that sharing these resources is a way to make our communities safer and keep important lines of communication open. We ensure our first responders are prepared to serve on our Incident Response teams and coordinate with government agencies that have authority and jurisdiction over our emergency response efforts. Each of our business units also completes multiple notification accountability drills for emergencies and one tabletop exercise every year. In addition, we hold dozens of exercises for other scenarios, including the following: • • • • • • • •

Process safety management Risk management fire or vapor cloud scenarios Supervisory control and data acquisition failure exercises at least twice a year Responses to real-world events Government-initiated unannounced exercises Earthquake responses Hurricane exercises Continuity of business or pandemic exercises

If there's ever an interruption of operations, the business continuity plans are put into action to quickly resume manufacturing and transporting energy products to markets worldwide. ENVIRONMENT AND SAFETY

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Asset Integrity Ensuring the integrity of our assets is a crucial HSEMS component. Business units develop programs and procedures to ensure proper asset design, fabrication, installation, operation and maintenance to minimize asset integrity risks associated with operations and equipment failure. Asset integrity programs include quality assurance and quality control, defined inspection and maintenance intervals for process equipment, and meeting company standards. These high-tech integrity programs and processes are designed to prevent unintentional product releases and protect everyone at our facilities and surrounding communities. Many of our company's process safety and environmental standards exceed industry requirements, promoting our goal of an incident-free workplace. PIPELINE INTEGRITY Liquids pipelines move crude oil and natural gas liquids to our operating assets and take the natural gas liquids, gasoline, diesel and jet fuel we produce to market. Our approach to pipeline safety is rooted in preventing product releases and staying ahead of maintenance requirements and emergency preparedness. Elements of these programs include exacting design and construction standards, comprehensive pipeline maintenance, 24/7 remote-line monitoring, leak detection, community education programs and strong relationships with emergency response teams across our asset footprint.

We seek existing pipeline corridors where feasible and use advanced construction techniques to minimize the impact on the environment, local communities, wildlife and natural resources. When we build or repair pipelines, we use various state-of-the-art techniques to ensure asset integrity, such as horizontal directional drilling technology, which allows us to bury pipelines deep underneath riverbeds, preventing pipeline exposures. Since 2012, Phillips 66 has spent approximately $130 million to enhance resilience at river crossings.

~$130 million

Starting at the planning stage, we work to ensure a project complies with all applicable regulations and laws, including the Clean Water Act, Endangered invested to enhance resilience at river crossings Species Act, National Historic Preservation Act and since 2012 others. We coordinate and engage with many agencies, such as the U.S. Army Corps of Engineers, U.S. Fish and We support response efforts along a pipeline’s Wildlife Service, and local and state regulators. planned route, and we regularly donate equipment to We take environmental considerations into account emergency response teams. during the planning for all pipeline projects and work to Clemens to Gregory (C2G) Pipeline identify community needs and wants. BRAZORIA, TX

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Existing pipeline rights-of-way are visually inspected biweekly, and in some areas, we also inspect via regular aerial pipeline patrols to look for potential signs of leaks and any other pipeline integrity threats such as unauthorized digging or exposures. We are recognized for our efforts to go beyond regulatory requirements. We have implemented state-of-the-art leak detection technology, real-time transient modeling, on all our operated pipelines. Our Pipeline Control Center staff in Bartlesville, Oklahoma, continuously monitors each pipeline's operations and pressure. At the first sign of a pressure change that could indicate a leak, an employee will shut down the pipeline as a precautionary measure until the matter is understood and resolved. Our proactive “think leak” approach, in which we work to prove that there is not a leak versus the more traditional approach of proving that there is a leak, has been noted by a representative of the Department of Transportation’s Pipeline and Hazardous Materials Safety Administration as industry-leading. We developed tools to monitor pipeline pressure cycles in real time. These tools give us insight into the pipelines with a high risk of pressure-cycle fatigue.

In pressure-cycle reduction projects, we've achieved pressure-cycle reductions as high as 80%. This translates into a lower risk for leaks caused by crack failures. It also results in fewer crack remediation excavations and can lengthen the intervals between crack inspections. We also have an industry-leading maintenance program that uses smart pipeline inspection gauges, or “pigs,” which travel through the pipelines and send images, enabling us to inspect and assess the interior of our pipelines and proactively identify maintenance needs from the inside. Hydrocarbon Spills We are improving the integrity testing of pipelines and using data analytics to reduce seam cracks. We apply our technical resources and know-how through joint studies with the Pipeline Research Council International, Joint Industry Partnership, and various committees within API and the Association for Materials Protection and Performance. In 2021, 95% of the Midstream environmental spill release volume directly resulted from damages sustained during Hurricane Ida.

AT A GLANCE

Pipeline Safety Pipelines are one of the safest ways to transport the energy we use every day, delivering products safely 99.999% of the time. We manage more than 22,000 miles of pipeline systems and directly operate about 12,800 of those miles, making Phillips 66 one of the largest pipeline operators in the United States by barrel-miles.

1+ billion

3.3 million

barrels of product delivered through operated pipelines in 2021

BPD of product delivered

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Living Our Values Through a Pipeline Replacement Project Our pipelines deliver crude oil, refined petroleum products and natural gas liquids. As segments of the pipelines age, we replace or reroute them to ensure the safe delivery of our products. Approximately 30% of the Midstream sustaining capital budget is allocated for pipe replacements. •

Our 90-mile Cherokee East Pipeline runs from our refinery in Ponca City, Oklahoma, to the northeastern part of the state, and, in 2021, we replaced and rerouted 27 miles of the clean product pipeline. Construction will be complete in 2023 The 250-mile-long Blue Line transports propane and butane from Paola, Kansas, to customers in Missouri and Illinois. Over the last six years, we’ve replaced more than 100 miles; an additional 34 will be replaced in 2022 and another 14 miles in 2023

The projects are notable for their importance and scope and for the safety example set by about 300 employees and contractors who worked on-site. Their teamwork, communication and commitment to safety led to more than 800,000 operational work-hours with zero recordable employee injuries and zero pipeline system release events. Safety goes beyond our workforce; the safety of the environment and the surrounding community is also a priority.

Gray Oak Pipeline at Taft storage facility TAFT, TX

COMMUNITY SUSTAINABILITY We also made investments in several Missouri communities surrounding the Blue Line replacement project, including: • • • • •

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A utility terrain vehicle for the Pacific Fire Protection District A safety fence around a commuter parking lot A Utility Task Vehicle with fire suppression and Emergency Medical Services skid insert for the Eureka Fire Protection District Equipment for the Fenton Fire Department Regional Training Facility A park shelter and trail project for Jefferson County Parks and Recreation

PHILLIPS 66 2022 SUSTAINABILITY REPORT


Environmental Stewardship WATER CONSERVATION Water is an essential resource in our manufacturing facilities and processes. All our refining assets have on-site water treatment systems, many of which use available brackish, saltwater or non-freshwater resources, as well as solutions that involve industrial reuse processes. In North America and the United Kingdom, we operate 12 biological treatment plants and 15 pre-treatment facilities. Phillips 66 researches and develops best practices for water use to ensure that we will have sufficient, sustainable water resources well into the future, and we are responsibly managing this critical natural resource. We also evaluate new technologies and products to decrease our water footprint by recycling more water, and we collaborate with research institutions to solve water challenges. To meet and exceed the strict requirements of the National Pollutant Discharge Elimination System, or industrial pre-treatment permits, we have improved our water management procedures, setting higher environmental performance standards, minimizing plant upsets, and reducing chemical use and waste generation. We have developed leading Key Performance Indicators as part of our water use efficiency program for our facilities, including condensate returned to steam produced and condensate recovered versus consumed in the process. Our refineries produce 15 million pounds of steam per hour. Each pound of steam is more than a pound of water, which is why we’re working to optimize our use of steam and minimize losses. As part of our DOM program, we’re rolling out an optimization tool to all our refineries. The tool allows operators and engineers to see the entire steam system and provides prescriptive actions to use the steam and minimize loss from venting. This is expected to help us recover 250 million pounds of steam a year. Closed-circuit Reverse Osmosis We repurposed a conventional reverse osmosis unit to use closed-circuit reverse osmosis (CCRO) to treat about 900 gallons per minute (GPM) of concentrated brine for use in boilers. CCRO works like a cooling tower that cycles water until it reaches a set salt content, at which point it blows down the brine while continuing to generate clean water. We see results in significantly improved cooling tower cycles, and the annual raw water demand for Borger's boilers is down by 473 million gallons.

473 million gallons of water saved through CCRO at the Borger Refinery

Using Technology to Save Water Pilot program reduced water usage and saved energy costs. Our Billings and Bayway refineries implemented steam trap monitoring as part of the DOM program. Using hand-held acoustic sensors coupled with a cloud-based analytics program, steam traps were periodically tested. Initial surveys identified areas for prioritized maintenance. Repairing the identified traps netted $1.3 million per year savings in energy costs at the two facilities. The work also helped improve third-party energy intensity performance statistics and reduce GHG emissions.

$1.3 million saved in 2021 energy costs by reducing steam losses at Billings and Bayway refineries

Three additional refineries will start the program in 2022 and remaining refineries are scheduled to be included in 2023. ENVIRONMENT AND SAFETY

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Wastewater We regularly engage with wastewater trade associations like the Water Environment Federation to work with our peers to develop and share best practices. Our wastewater experts volunteer their time to peer-review articles published in Environmental Engineering Science, a journal covering climate change, energy and environment; contaminant fate and transport; environmental sensors; and green technologies. We are also working on a project to treat and recycle 3,200 GPM of wastewater to be used in boilers at our Borger Refinery. This project will help the refinery meet new selenium discharge requirements. Remediated Water Recycling Estimates Our Remediation Management team is responsible for treating water that may have been contaminated. In 2021, the team treated and recycled over 48 million barrels of water for reuse at our facilities, reducing the amount of freshwater needed to operate.

48 million barrels of water recycled for reuse at our facilities

Typical reuses can include temperature control of cooling towers, emergency response application and outfalls. Bioreactor Bugs Processing crude oil requires water, which must be cleaned to remove nitrates before discharge. If nitrates aren’t removed, they can encourage excess algae growth in rivers and streams. The ERI teams in Bartlesville, Oklahoma, and at Humber Refinery discovered that, in low-oxygen conditions, certain bugs break down nitrates into nitrogen gas, which is safely dissipated into the atmosphere. This method has helped our Humber Refinery, in the U.K., decrease its total nitrogen output by more than half, allowing the refinery to meet environmental requirements and realize additional utility cost savings on oxygen and fresh caustic usage.

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Water application lab at Ponca City Refinery PONCA CITY, OK


AT A GLANCE

Reducing Freshwater Use We are committed to reducing freshwater withdrawals at our facilities. Our efforts extend to our Houston Headquarters, where we collect and reuse rainwater. Several of our refineries have developed processes to meet the facility's unique needs. Recycling water is one way we do that. Understanding the local water demand and the potential for water scarcity in the future are key considerations, as we prioritize projects to improve efficiency and decrease our environmental footprint.

BORGER REFINERY

LAKE CHARLES REFINERY

Our Borger Refinery has several ways to conserve water, including recovering 200 GPM of condensate for use in boilers. This saves 105 million gallons of freshwater each year.

At our Lake Charles Refinery, we recycled 378 million gallons in 2021. That’s a 17% reduction in our raw water demand.

PONCA CITY REFINERY Our Ponca City Refinery reduces its freshwater usage by reclaiming water and harvesting stormwater. This practice has reduced freshwater needs by 2,500 GPM, or 1.3 billion gallons per year. That's a 32% reduction in our freshwater usage.

Ponca City Refinery PONCA CITY, OK

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WASTE MANAGEMENT AND RECYCLING Across all our operations in 2021, we recycled 184,000 metric tons of materials, bringing us to more than 1 million metric tons recycled companywide since 2014. That total includes more than 220,000 pounds of recycled electronic waste, refinery process catalyst captured for metals reclamation, oils and solids captured for reuse, and recyclable materials such as metal, glass and paper. We also achieved a 20% reduction in power usage at company-operated data centers.

20%

184,000

reduction in power use at company-operated data centers

metric tons of materials recycled in 2021

We track every raw material used in the manufacturing process at our lubricants plants. In 2021, we recycled 950 tons of scrap material across our portfolio, including cardboard, bottles, cans, pallets and shrink wrap. Tanks at our refineries and terminals require periodic cleanouts, and we must dispose of the residual product in compliance with strict environmental laws. Phillips 66 has a systematic hazardous waste program with processes and practices executed by trained personnel. Each of our operating sites has environmental professionals whose expertise is supplemented by corporate staff. In 2021, our tank cleanout methods led to the generation of 1.7 million gallons of waste-derived fuel for manufacturing processes and conserved more than 170,000 gallons of water. Obsolete electronic equipment is sustainably processed through a third-party provider. When possible, the equipment is refurbished and used for other purposes. Other times, it's broken down into useable component materials. We recycled or refurbished 223,724 pounds of Information Technology (IT) equipment across our U.S. facilities in 2021.

Arrows of Impact Our Arrows of Impact program is designed to reduce waste at our Houston Headquarters by 20% by the fourth quarter of 2022. Launched on America Recycles Day in 2021, the program makes recycling more convenient and educates employees on what and how to recycle. In 2021, we generated about 200 pounds of waste per person at our Houston Headquarters, and through our program, we recycled 26 metric tons and composted 0.55 metric tons of café waste, coffee grounds and napkins.

But we can still do better. That's why we implemented the following initiatives to achieve our Arrows of Impact goal: •

Our recycling efforts: • • •

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Conserved 172,848 gallons of water and 36,632 kilowatt-hours of electricity Saved 468 mature trees Prevented 7 metric tons of CO2e GHG emissions

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• • •

Adding reusable containers in the cafeteria: Each reusable container can be used 1,000 times. Using 500 reusable containers will replace 50 months’ worth of disposable containers Increasing composting from the café Reducing the use of disposable cups Installing hand dryers in our restrooms


Retained product detection system DENVER, CO

Preventing Loss With Artificial Intelligence When trucks enter our terminals to be filled, we need to know how much product we can put in each truck to prevent overflow. Retained product that was part of a previous delivery, but is still in a truck's tank, is the leading cause of spills at our truck racks. We completed a proof-of-concept test and are testing a permanent installation of a retained product detection system utilizing artificial intelligence and infrared cameras to spot retained product in trucks as they enter our Denver Terminal. Identifying when there’s product already in the tanker before loading is expected to reduce the number of releases and subsequent downtime at the truck rack. The system is targeted for implementation at additional sites in 2022. Lake Charles Manufacturing Complex WESTLAKE, LA

AIR EMISSIONS Over the past 10 years, we have focused on significant investments in reducing air emissions. Since 2012, volatile organic compound (VOC) emissions from our Refining business unit have decreased by 34.5%.

34.5% decrease in VOC emissions since 2012 The air research and development program at the Phillips 66 Research Center collaborates with government agencies, trade organizations and academic institutions to provide data that leads to effective rule-making to improve air quality in the communities where we operate. We also find efficient ways to use resources. For example, in July 2021, we found a way to allow a third party to use excess fuel gas from our Bayway Refinery during turnaround and nonturnaround operations. Instead of burning in process heaters and boilers or flaring the excess, off-gas can now be piped directly to the cogeneration unit. This agreement has numerous benefits, including improved fuel balance, increased fluid catalytic cracking and improved energy performance at the site. Flare Gas Recovery At our Lake Charles Manufacturing Complex in Louisiana, the West Flare Recovery Gas Compressor system for Excel Paralubes was commissioned in 2021. Gas that would have normally been flared was instead recovered and recycled back into the refinery, resulting in less flaring and fewer emissions. Flare Gas Recovery systems minimize flaring during routine operations yet allow flares when needed for emergency safety mitigation purposes. ENVIRONMENT AND SAFETY

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BIODIVERSITY AND CONSERVATION Our environmental stewardship goes beyond regulatory requirements and focuses on connecting conservation efforts to our business and managing natural capital in and around the communities where we work and market our products. Natural capital encompasses the supply of the world's natural resources from which economic value and benefits can be derived, such as forests, oceans and freshwater, and the biodiversity that supports these ecosystems. We believe the careful management of natural capital is a core component of a resilient, long-term strategy. We collaborate with local and national environmental and conservation organizations to promote biodiversity and environmental stewardship and support their efforts by donating money and resources. Our employees and interns volunteer their time and make monetary contributions, many of which are matched by the company. Phillips 66 has long-standing partnerships with many national conservation organizations, including the National Fish and Wildlife Foundation, Ducks Unlimited, Trees For Houston and the Wildlife Habitat Council. We view the management of natural capital and biodiversity risks as essential. We address them throughout the planning and development of major capital projects by conducting environmental impact analyses, collecting critical environmental data, and implementing mitigation and monitoring programs to reduce impacts and ensure results.

PROTECTING WILDLIFE IN OUR COMMUNITIES We also make an annual contribution to a bird or wildlife rescue and rehabilitation organization in every region. In 2021, we donated to numerous groups, including: • • • • • •

Tri-State Bird Rescue and Research The Wildlife Center of Texas International Bird Rescue Sutton Avian Treehouse Wildlife Center Wild West Wildlife Rehabilitation Center

Wilson’s Plover GRAND ISLE, LA

Creating Green Space The Edwardsville Children’s Museum Micro Forest project near our Wood River Refinery in Roxana, Illinois, is aiding the environment in a big way. When micro forests — small, wooded areas in urban settings — are planted, they can become a diverse ecosystem in just 20 years. This benefits biodiversity and air quality and slows stormwater runoff, helping prevent flooding and water pollution. Phillips 66 was proud to sponsor and provide volunteers to plant more than 100 trees in spring 2021. The museum hopes to have a full 2-acre forest preserve by 2033. The micro forest project also connects to a STEM forest display sponsored by the refinery inside the museum. Edwardsville Children’s Museum Micro Forest EDWARDSVILLE, IL

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A Multifaceted Approach to Monarch Conservation In 2022, we applied for a Nationwide Monarch Butterfly Candidate Conservation Agreement for Energy and Transportation Lands. This effort would enroll 11,194 miles of our rights-of-way with an average width of 50 feet — approximately 67,842 acres — in a project to protect these threatened insects. Our rights-ofway span 243 counties in 17 states: Colorado, Idaho, Illinois, Kansas, Louisiana, Missouri, Montana, North Dakota, Nebraska, New Jersey, New Mexico, New York, Oklahoma, Texas, Utah, Washington and Wyoming. We plan to address key threats to monarch butterflies with actions that promote monarch habitat and benefit all pollinators. These include maintenance and management practices such as conservation mowing, idle lands, woody vegetation removal, targeted herbicide application, and limiting broadcast herbicides to high-activity areas like terminals and valve sites. Our Houston Headquarters is a certified Monarch Waystation location. In collaboration with our landscape management company, we’re renovating our landscape to provide a butterfly habitat for monarchs and other species. Phase one of the project earned us status as an official Monarch Waystation with more than 600 milkweed plants and numerous host and nectar plants that sustain the entire life cycle of the monarch butterfly. Phase two will include even more plantings.

Building a Safe Place for Migrating Waterfowl Phillips 66 is a sponsor of a first-of-its-kind waterfowl refuge being built at ZooMontana near our Billings Refinery. The refuge will be a natural stopping spot for waterfowl during migration. The exhibit will have observation decks, an underwater area to watch native fish and boardwalks so that zoo visitors can learn about wildlife and wetland ecology. Restoring the Louisiana Coastline We teamed up with the Louisiana Coastal Conservation Association (CCA) and more than 100 local school children and other volunteers to restore marshland in Lake Charles’ Prien Lake Park. Volunteers created 10 floating islands measuring 8 feet by 20 feet; each island was then planted with about 150 native plants. Afterward, CCA volunteers floated the completed islands to a spot in Prien Lake by boat and then anchored them down. Projects like this help create habitats for native species and restore marshland that has been destroyed by erosion and hurricanes. Phillips 66 volunteers also worked with the Coalition to Restore Coastal Louisiana to help build the Plaquemines Oyster Reef. We’re honored that our employees are featured in the organization’s Champion Our Coast 2022 Corporate Coastal Stewardship Guide.

Leaving the Lights Off for Birds Every spring, approximately 3 billion birds migrate through the United States, and it is estimated that one-third of those pass through Texas on their travels. Bright lights from homes and businesses can disorient the birds at night. During peak migration, we only used essential lights at our headquarters overnight to support the Lights Out Texas initiative to help the birds fly safely to their summer nesting spots.

For more details on environmental data, see the Performance Data section in this report.

Plaquemines Oyster Reef volunteer event at Prien Lake Park LAKE CHARLES, LA

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Governance

Lake Charles Manufacturing Complex WESTLAKE, LA

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We are committed to doing the right thing, always.

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Good governance and ethics are an integral part of every level of our organization. Rigorous and consistent corporate governance practices contribute positively to our corporate culture and shareholder value.

Board and Managerial Oversight and Governance Our board of directors and our Executive Leadership Team are committed to ethical business practices. The board regularly reviews evolving corporate governance best practices, regulatory requirements and feedback from shareholders, making changes it believes are in the best interest of Phillips 66 and its shareholders. Directors also collaborate with senior leaders and stay connected to our corporate culture through regular visits to our facilities, where they study the company's day-to-day operations and talk to employees. Each of our board committees has specific responsibilities. The Public Policy and Sustainability Committee manages the company’s sustainability program and associated initiatives and: • • • •

Reviews compliance with HSE policies and impacts of environmental and social trends and uncertainties Reviews exposure to and management of environmental, social and political trends and risks, including climate risk Reviews and makes recommendations on the company's policies, programs and practices regarding HSE protection, government relations and political contributions, philanthropy, and sustainability matters Reviews the company's global reputation as a good corporate citizen in the communities where it operates

The Audit and Finance Committee monitors our enterprisewide risk management program and our controls, compliance and ethics. It oversees the integrity of our financial reporting and financial statements. The Nomination and Governance Committee oversees board composition and succession planning. It is committed to enhancing diversity and seeking candidates with diverse backgrounds and perspectives who possess the collaborative spirit, character, skills, experiences and expertise required to oversee the execution of the company’s strategy, risk management and operational objectives. The Human Resources and Compensation Committee determines compensation for the Executive Leadership Team. It oversees our human capital management strategy, including workplace culture, diversity and inclusion, and other talent management programs and initiatives. The Executive Committee can exercise the powers of authority of the board to direct the business affairs of the company between meetings of the full board. The company and board governing documents lay out the specific roles and responsibilities of the board and its committees. The full charters for each committee can be found on the Phillips 66 Investors site.

Houston Headquarters HOUSTON, TX

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Ethics and Governance Written policies and auditing programs create strong governance throughout the company and our supply chain. Key policies and documents, including board governance documents and charters, are publicly available on our website. These and many other formal procedures and controls set the standards that guide our actions and ensure the highest levels of responsibility, integrity and legal compliance across our businesses. ETHICS AND BUSINESS CONDUCT Safety, honor and commitment are our values. At Phillips 66, we do not compromise our integrity. We recognize that questions can arise in today's increasingly complex global business environment. Therefore, we follow the operating guidelines in our Code of Business Ethics and Conduct (Code of Ethics) to ensure we tie our company's values to our decision-making processes. Our company policies, programs and practices ensure ethical business and good governance. We expect every person who works at Phillips 66 — directors, officers and employees at all levels within the company — to work for the greater good and act with integrity, abiding by our Code of Ethics. All employees participate in biannual training on the Code of Ethics and must attest that they will comply with the Code annually. Phillips 66’s principal executive officer and senior financial officers are also expected to adhere to a supplemental Code of Ethics for the Principal Executive Officer and Senior Financial Officers. We conduct annual benchmarking of our ethics program via a third party and share those results with our board's Audit and Finance Committee. The Code of Ethics covers topics including, but not limited to, human rights, conflicts of interest, discrimination, harassment, confidentiality, antibribery, anti-boycott, employee grievances, insider trading, competition and fair dealing. It encapsulates the company's human rights position and prohibits human trafficking and forced labor, consistent with international norms. We recognize and respect the dignity of all human beings. We believe business has a role in promoting respect for human rights worldwide. We embrace the right of all people to live their lives free from social, political or economic discrimination or abuse. It oversees the integrity of financial reporting and financial statements. The United Nations Universal Declaration of Human Rights informs our Position on Human Rights. We don’t use corporal punishment, and where we provide housing for employees, we ensure living conditions are safe and sanitary.

SHARED VALUE Our company contributes to the local, state and national economies and the communities in which we live and operate. Since 2012, Phillips 66 has paid approximately $10 billion in income and property taxes to local, state and federal governments, helping fund programs for public schools and projects like roads, bridges, ports and waterways.

~$10 billion income and property taxes paid to local, state and federal governments since 2012

From 2012 through the end of 2021, we distributed over $29 billion to shareholders through dividends, share repurchases and share exchanges. We achieved these results through our continued commitment to safe, reliable and environmentally sustainable operations.

$29+ billion to shareholders through dividends, share repurchases and share exchanges from 2012 through the end of 2021

Global Ethics Toll-free Help Line 855-318-5390

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BUSINESS PARTNER, SUPPLY CHAIN AND SOCIAL SUPPLIER STANDARDS The products manufactured in our refineries and developed along the supply chain significantly contribute to local, state and national economies. In keeping with our core value of honor, we choose business partners objectively and fairly and act with honesty in all business dealings. We comply with laws where we do business to ensure our supply chain standards meet minimum wage, child labor, right to associate or bargain collectively, and working-hour requirements. Business partners and suppliers are expected to comply with the contractual obligations and expectations in our Business Partner Principles of Conduct. These principles require our suppliers to work with our employees in a manner consistent with our values and our Code of Ethics. Priorities include fair wages, nondiscrimination, no human trafficking, antibribery, cybersecurity, and upholding all health, safety and environmental laws. Our procurement policy governs all our supply chain activities. We employ formal processes to consistently vet suppliers to protect people, ensure adherence to industry-standard frameworks for quality and monitor financial stability. Maintaining ongoing engagement with our suppliers helps ensure the continued safety, quality and sustainable delivery of goods and services to our operations. Understanding and monitoring the work conducted by our suppliers and business partners is integral to efficient and robust business operations, sustainability and respect for human rights. We audit suppliers’ manufacturing facilities and examine contracts within our supply chain to ensure adherence to policy. Our suppliers are expected to certify that the materials incorporated into products sold to Phillips 66 comply with all laws, including those pertaining to human rights, slavery and human trafficking. We engage with suppliers to enhance our operating performance through innovative products and the execution of continuous improvement opportunities. Supply Chain Sustainability

Phillips 66 seeks to do business with diverse businesses across all our operations, and we are committed to providing equal and impartial opportunities. This approach stimulates local economic development and enhances our longterm business performance by improving supplier responsiveness, competition and sustainability. 42

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We actively participate in organizations that support the development of diverse businesses in the United States. This support includes our corporate memberships in the National Minority Supplier Development Council, the Women’s Business Enterprise National Council and active support of API diversity activities. Our goals encourage the expanded utilization of a diverse, sustainable supply base while delivering quality and competitive goods and services. We piloted supply chain sustainability training for our employees, highlighting items of impact and our initiatives. We anticipate offering training to all employees in the Procurement organization by the end of 2022.

ADVANCING SUPPLIER DIVERSITY We advanced our supplier diversity program by establishing collaborative relationships, developing digital tools, providing data visibility and establishing internal metrics for diverse supplier benchmarking and utilization in alignment with our business needs. In 2021, we developed a dashboard that allows business units to analyze their current supplier diversity landscape. We increased our Tier 1 and 2 supplier reporting program to engage with and advance our efforts.

POLITICAL AND PUBLIC POLICY PROCESS Phillips 66 participates in the U.S. legislative and regulatory policy development and political process to serve the best interests of our shareholders, our workforce and other stakeholders. Our operations are highly regulated and are affected by actions at many levels of government. Our public policy activities include education and advocacy efforts at the local, state and federal levels. We are also committed to complying with all applicable state and federal rules on lobbying and disclosures. Our Political Giving and Activity Policy governs our actions. It discloses political activity by the board of directors and management and lays out the criteria by which we evaluate contributions made over the past five years. In addition, the board’s Public Policy and Sustainability Committee has oversight of political risks and receives updates from the board throughout the year.


PHILLIPS 66 EMPLOYEE POLITICAL ACTION COMMITTEE In accordance with board and company policies, Phillips 66 does not make direct corporate contributions to candidates in state and federal elections where prohibited. Employees can, however, support candidates for office through PAC66, a political action committee that is funded exclusively through voluntary contributions from eligible employees and members of the board of directors. It is registered with the Federal Election Commission, and contributions are reported monthly. Employees participating in PAC66 are not reimbursed — directly or indirectly — for political contributions or expenses. PAC66’s board of directors is comprised of a broad cross-section of company employees. The board approves all PAC66 disbursements, which are made solely in the best interest of the company and its shareholders, and not according to the personal agendas of individual directors, officers or employees. PAC66 contributes to state and federal political candidates who support responsible energy industry activities and other business issues of interest to the company.

Trade associations are advocates on many issues, including climate change. We use our climate change position and principles when evaluating a trade association's position on specific legislation or regulation. Participation in a trade association, including membership on its board, does not mean that the company agrees with every position the association takes on an issue. When our corporate position differs from that of the association, we seek to work with the association members to promote reasonable compromise on major initiatives affecting our business and stakeholders. Additionally, we are active members in local Chambers of Commerce and other civic organizations where our operating assets are located. A list of these organizations can be found in our Political Giving and Activity Policy. Analysis of trade associations' alignment with our positions are detailed in our Lobbying Activities Report, available on our website. Bayway Refinery LINDEN, NJ

TRADE ASSOCIATIONS We participate in industry trade associations where we share technical and standards expertise and lessons learned from incident investigations. We also develop best practices and take part in public education efforts regarding issues of common concern to our industry. Our participation in trade and industry associations is subject to management oversight by our Government Affairs team, which serves as the principal representative in such associations and recommends memberships to our Executive Leadership Team. We regularly review associations and memberships to ensure that they continue to serve our business needs. Phillips 66 pays regular membership dues to several trade associations, some of which use a portion of those dues for nondeductible state and federal lobbying and political expenditures. Following the U.S. Internal Revenue Code, these trade associations provide us with documentation of the part of our annual dues that is attributable to lobbying expenses. We disclose these contributions in our Political Giving and Activity Policy. GOVERNANCE

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Cybersecurity We recognize the increasing threat of cybercrimes and enforce comprehensive Corporate Information Security policies, standards and technical controls to protect the confidentiality, integrity and availability of the company's systems and information assets. These policies and standards, followed by all business units, align with recognized cybersecurity frameworks and industry best practices. At a corporate network level, Phillips 66 applies controls and processes to actively monitor, detect, prevent and respond to external cybersecurity threats. Every inbound email is inspected for malicious activity. External threats are mitigated through external penetration testing conducted by independent third-party specialists. For internal business-critical process control networks, specific controls are implemented to mitigate the risk of cybersecurity threats. These controls include, but are not limited to, the segregation of process control networks and systems from the Phillips 66 corporate network and external networks. The Phillips 66 Digital Security team provides information security operational support and general cybersecurity guidance for all locations. The team is also responsible for general and specific employee awareness programs that promote good cybersecurity habits. A privacy program has been implemented to protect personal information assets. Phillips 66 Risk Management standards require regular information security risk assessments for business units and projects. These assessments include internal networks and systems, as well as third-party suppliers and partner assessments. We’ve also selected leading managed network service providers to deliver secure broadband network services with secure transaction and settlement processing for reliable and secure payments. These system elements are reviewed annually by third-party assessors to demonstrate ongoing compliance with the Payment Card Industry Data Security Standards. Each year, we conduct a range of IT audits across the company’s IT infrastructure, networks, systems, applications, operational processes and procedures to ensure compliance with our Information Security policies and standards. Process control network assurance audits are done on a rotating schedule with coverage at each facility on a cycle of no greater than five years. As part of the Business Continuity Plan development, all corporate IT systems are assessed for business criticality with key systems and data included in the IT Disaster Recovery Plan (DRP). The DRP supports the resumption of corporate IT services related to essential business processes in a major unplanned event causing significant damage or loss to the infrastructure.

Mobile pay at Phillips 66 fuel station

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Beaumont Terminal NEDERLAND, TX

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Task Force on Climate-related Financial Disclosures Analysis We include our TCFD analysis in our governance chapter to provide you with a look at how we are assessing and mitigating risks and opportunities associated with climate change. GOVERNANCE AND OVERSIGHT OF CLIMATE-RELATED RISKS AND OPPORTUNITIES At Phillips 66, risk management starts with our board of directors and its committees providing oversight of strategic planning. Our governance structure provides the board and executive leadership the necessary opportunities to exercise their oversight responsibilities concerning risks, including those related to climate change, and our executive leadership is responsible for the strategic and operational management of climate-related financial risks and opportunities. The board and management review long-term energy outlook scenarios and leading indicators annually and as a consideration in business planning. The Audit and Finance Committee monitors our enterprisewide risk management program more frequently. It also reviews company controls, compliance and ethics. The board’s Public Policy and Sustainability Committee considers environmental, social and political trends and risks to guide the company’s long-term business objectives. OUR VISION At Phillips 66, our commitment to providing energy and improving lives extends to every aspect of our business. As the global population grows, access to affordable, reliable and abundant energy is needed to drive human progress and the need for global action to reduce GHG emissions increases. We strive to increase the efficiency of our diversified operations. Our integrated portfolio provides ongoing opportunities to strengthen our competitiveness and maximize upside in the near term and mitigate downside risk longer term. Our strong balance sheet, scale, commercial acumen, leadership in research and innovation, and growth opportunities within our expanding lower-carbon portfolio contribute to our long-term resilience. Technology development and deployment are needed to provide energy now and achieve energy transition goals consistent with the Paris Agreement. To test our financial resilience under multiple scenarios, we consider a range of possible long-term energy outlooks, and we evaluate and mitigate potential risks, including climate-related risks. We adjust our plans to capture new opportunities considering technology developments, policy changes and consumer energy demand.

Los Angeles Refinery WILMINGTON, CA

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CLIMATE-RELATED RISKS

MARKET — OIL AND NATURAL GAS PRICES

The deployment of disruptive new technologies at mass scale within government policy environments that These are risks that may impact financial results. They strongly incentivize investment and innovation would include any that may materialize over the current annual reporting cycle and up to a five-year time frame. have long-term impacts on oil and natural gas demand and prices. Potential Short- and Medium-term Risks

REGULATORY — EMISSIONS

Our industry is highly regulated, and we comply with the many local, state and federal laws that affect our operations, including those on air emissions. Our Health, Safety and Environment Management System (HSEMS) facilitates HSE performance and compliance with standards, procedures and guidelines that often exceed regulatory requirements and are consistently applied by all business units.

To mitigate this risk, Phillips 66 remains committed to ongoing scenario analysis, responsible risk management, and transparency about our financial and portfolio resilience and how we are preparing to adapt for the longer term. PLANS FOR OUR FUTURE PERFORMANCE ARE SUBJECT TO SOCIETAL AND POLITICAL PRESSURES

Plans to expand or construct assets and plans for future performance, including our joint ventures, are subject to We have made significant investments in environmental projects, including efforts to reduce emissions that focus risks associated with societal and political pressures and on efficiency, resilience, adaptation and renewable fuels. other forms of opposition to the future development, transportation and use of carbon-based fuels. Such risks For more details, see the Risk Management section of could adversely impact our results of operations. this report. Although it is not possible to predict how future GHG emissions legislation would impact the company’s business, legislation or regulation that emerges over the medium- to long-term that imposes reporting obligations on, or limits emissions of GHGs from, the company's equipment and operations could require the company to incur costs. PHYSICAL RISK — BUSINESS CONTINUITY

CLIMATE-RELATED OPPORTUNITIES Providing Lower-carbon Alternatives

By 2030, our Emerging Energy organization is targeting $2 billion of EBITDA (earnings before interest, taxes, depreciation and amortization) contributions through investments that are consistent with our disciplined approach to capital and emphasis on returns.

We're evaluating our assets and increasing our supply of renewable fuels. We continue to assess new opportunities within our portfolios and with We have developed an Emergency Response third parties. While doing so, we remain focused on Management System and Crisis Management Plan based operating reliability. on risk evaluations and business impact analyses. Each facility has a written emergency response plan to ensure We commercialize premium coke for the world's lithium-ion battery anode market using petroleum coke, continuous availability, or prompt recovery, of critical a byproduct of our refining process. business processes, resources and facility operations. The company is also assessing longer-term technologies, Potential Long-term Risks including carbon capture, lower-carbon hydrogen These risks may fundamentally impact the viability production for multiple applications and the development of our long-term strategy and business model. They of hydrogen fueling networks. include risks that may materialize over a five- to 10Investing in Technology Development year time frame. We enhance our business programs and initiatives with research to improve our operations and provide a science-based approach. The company is prepared for the possibility of extreme weather events that might impact our operations.

We invest in the development of lower-carbon technologies such as OPVs, SOFCs and next-generation batteries.

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SCENARIO ANALYSIS Today, the world population is close to 8 billion, and it's expected to increase to 8.5 billion people by 2030 and nearly 10 billion by 2050. The U.S. Energy Information Administration anticipates petroleum and other liquid fuels will remain the world's largest energy source in 2050, with renewable energy sources, including solar and wind, growing the fastest. The rising global population, coupled with higher standards of living, will increase pressure on Earth's natural resources, with implications for the energy transition. As the energy transition progresses and evolves, Phillips 66 will continue to adjust its strategic plans accordingly. We assess proprietary and public long-term energy demand scenarios in our corporate strategy planning, such as IHS Markit, the IEA Stated Policies (STEPS), IEA Sustainable Development (SDS) and IEA Net Zero Emissions by 2050 scenarios. Considering this range of scenarios allows us to test our portfolio across a wide range of potential environments. We formulate views on potential market fundamentals, regulatory developments needed under various scenarios, and emerging risks and opportunities under various market conditions. We are then able to identify changes to our strategy in light of the results. We consider implications to our capital allocation, growth opportunities, potential mergers and acquisitions, and which lower-carbon investments to pursue.

PRIMARY ENERGY DEMAND BY FUEL TYPE

GLOBAL LIQUIDS DEMAND

(Billion Tons of Oil Equivalent)

(Million Barrels per Day)

0

18

n Biomass

16

n Wind/Solar

14

n Bioenergy

12

n Hydro n Nuclear

10

10

20

30

40

50

60

70

80

90

100

110

2010 2015 2020

n Natural Gas

8

n Oil*

6

2030

n Coal

2035

4 2

2040

0 2010 2015 2019 2020 2030 2035 2040 Source: IEA-World Energy Outlook-October 2021 (STEPS) *oil includes oil products, NGLs, biofuels

n IHS Markit (May '22) n OPEC (Sep '21)

n IEA STEPS (Oct '21) n Actual

n IEA SDS (Oct '21)

Sources: IEA, IHS, OPEC. Copyright S&P Global 2022, IHS Markit forecast is shown for IHS Markit’s reference case published in the Annual Strategic Workbook, Apr, 2022

Business Planning Our business planning process utilizes several inputs to develop a range of forecasts to inform our capital allocation decisions and enable sustainable, resilient and profitable operations. We consider metrics for key strategic, physical and policy variables within our scenarios. Our decision-making processes include consideration of key climate policies, energy mix, energy efficiency, access to capital, tax, reputational, technological and human capital risks and opportunities. As a result of our scenario planning, we invest in infrastructure to meet global energy needs. We are investing in heat recovery hardware, process controls and energy dashboards that enable operators and engineers to improve the energy efficiency of our pipelines, refineries and fractionators. We are converting our Rodeo facility in California to make lower-carbon fuels, and in the United Kingdom, we are expanding renewable fuels production at our Humber Refinery. We are evaluating potential investments in the EV battery supply chain, carbon capture and lower-carbon hydrogen.

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Effects on Our Assets The potential physical effects of climate change and severe weather on our operations are highly uncertain and depend upon the unique geographic and environmental factors present at the various sites where our businesses are located. We have systems in place to manage potential acute physical risks that could have an adverse effect on our assets and operations, including those that may be caused by climate change. We have incurred, and will continue to incur, costs to protect our assets from physical risks and to employ processes to the extent available to mitigate such risks. Many of our facilities are located near coastal areas. As a result, extreme weather and rising sea levels may disrupt our ability to operate these facilities or transport crude oil, refined petroleum, or petrochemical and plastics products. Extended periods of such disruption could negatively affect our operations. We could also incur substantial costs to prevent or repair damage to these facilities. Finally, depending on the severity and duration of any extreme weather events or climate conditions, our operations may need to be modified and material costs incurred, which could adversely affect our business, financial condition and results of operations.

AT A GLANCE

Core Components of Planning and Management

1. Mitigating physical risks

2. Forecasting policy risks

Phillips 66 operations are affected by nature — droughts, floods, hurricanes, storms, heat, cold and earthquakes. We have substantial systems and processes to help us identify, measure, manage and mitigate risks associated with each of these possibilities.

We are subject to changing laws, regulations and judicial opinions; community, national and global preferences; and contractual obligations. We have developed sophisticated, multilevel, integrated systems to anticipate, inform, manage and comply with these requirements and expectations. For clarity, we include cybersecurity risks because cybersecurity can span policy and technology.

3. Seeking technology opportunities As an energy company focused on both the present and the future, we realize the value of our in-house research and development center staffed with scientists and engineers. This differentiator enables us to create solutions to current and future physical or policy risk challenges. Our ERI team members analyze and develop technologies and evaluate feasibility, economics, scalability, key milestones and timing. They find ways to increase clean product yields and overall energy efficiency; make our operations safer, more reliable and more sustainable; reduce water risks and other environmental impacts; and manage changing regulations and expectations. The solutions we develop benefit our company, our customers and our communities. For more details, see the Research and Innovation section in this report.

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RISK MANAGEMENT At Phillips 66, we use a detailed and disciplined process to identify potential risks and opportunities that could significantly impact our business. Enterprise Risk Management Our enterprise risk management program provides a systematic approach to identifying and understanding significant risks, including climate-related issues, changes in energy policy, and physical or operational risks. Our strategic planning and scenario planning seek to manage our businesses' risks while evaluating opportunities to execute our strategy. Experts from all areas of our business units and functions — including Refining, Midstream, Commercial, Marketing and Specialties, Corporate Strategy, Research, Finance, Treasury, Tax, Legal, Compliance, Government Affairs, Community Relations and Environment, Social and Governance — are actively involved in our risk management program and processes. Our Risk Management team works to identify risks falling into any of the categories described above that could affect our overall policies and governance, strategy development, business units, forecasts and capital allocation decisions, among others. Additionally, our Risk Management team provides detailed, regular, timely and relevant information to our board of directors and Executive Leadership Team. This information is one of many inputs that enables our board and its committees to oversee and guide our company effectively. In our program we: • • • •

Quantify the risks based on our assessment of the probability of each risk and the potential significance of its financial, reputational or other impacts Assess each of these risks in light of potential mitigating strategies or factors that may be available Assign values to each mitigating factor based on assessments of potential timing, costs, effectiveness and other features Include assessments of potential GHG emissions policies and impacts

Each of these risks has a corporate owner, creating accountability within our organization. Management directs, and the board oversees, the enterprise risk management program and processes.

RISKS TO OUR BUSINESS • • • • • • •

50

Physical environmental factors, risks associated with weather or climate, and our efforts and ability to measure, report and control GHG emissions The impact of regional or global energy accords and related forecasts of program impacts and costs Financial variables, including the likely location, scale and duration of all tax regimes, including carbon taxes Evolving investor opinions and initiatives Community, cultural, political and public opinion factors that could influence where, when and how we operate and at what cost Demographic, scientific, technological, reputational and human capital matters Trade leakage, which can result when imported goods transfer from one jurisdiction to another

PHILLIPS 66 2022 SUSTAINABILITY REPORT


Identifying, Assessing and Managing Climate-related Risks

Climate-related risks are integrated into multiple larger risk categories because of the interconnected nature of these risks across multiple categories. We test our assumptions against CO2 cost-forecasting, energy-efficiency indices and best practices, carbon capture technology and cost, and renewable fuels forecasts, alongside regulatory requirements. Data on our GHG emissions, legal requirements regulating such emissions and the possible physical effects of climate change on our assets are incorporated into our planning, investment and risk management decision making. We account for anticipated GHG emissions when we are designing and developing facilities and projects and implementing energy-efficiency initiatives that also reduce GHG emissions. Regulatory certainty and economic viability are integral considerations. We test a variety of future scenarios that could have a material impact on the company and variables that may be associated with an incident. This system ensures we mitigate risk to the company and conduct regular gap analyses. It also enables us to position the company to benefit from energy efficiency, emissions reductions and other business and policy goals. Processes for Managing Climate-related Risks EFFICIENT ENERGY USE

Energy expenditures can account for a significant portion of a refinery's operating expenses. We capitalize on opportunities to reduce these expenses, such as improvements in heat exchange or recovery, furnace controls, and steam optimization. Since our inception in 2012, six of our 11 U.S. refineries have earned U.S. EPA ENERGY STAR® certifications for performing in the top 25% of similar facilities nationwide for energy efficiency and meeting EPA performance levels. Our headquarters building in Houston, Texas, is certified as a Leadership in Energy and Environmental Design Platinum facility. Additionally, seven of our refineries have associated cogeneration units. Cogeneration uses a single fuel source to produce both electricity and heat simultaneously. The process helps us meet our manufacturing needs and converts heat that would otherwise be lost into thermal energy to power our process equipment. Three cogeneration units — at Los Angeles and San Francisco in California and Sweeny in Texas — are owned by Phillips 66. Any excess power not used in our facilities is sold to the local utility market. Four other refineries — in the Texas Panhandle, New Jersey, Washington state and the United Kingdom — purchase some of their heat or electricity from third-party-owned cogeneration units adjacent to our facilities. The Sweeny cogen unit produces power for the refinery and CPChem petrochemical plants. During normal operations, we can export as much as 165 megawatts of electricity to the local power grid. That’s enough to power 100,000 homes. During Winter Storm Uri, in 2021, we increased that output to 370 megawatts, doubling our impact. To accomplish that, we shut down operating units, minimizing our energy usage and maximizing our output to the community. We have an active Energy Best Practices network of representatives from all our refineries and major corporate support groups, including Refining Business Improvement, ERI and IT. Members of the network meet regularly to share information about technology, experiences at their plants and ongoing energy conservation projects. EFFICIENT WATER USE

Access to water, maintaining its quality and using it efficiently are critical elements in sustainable energy production. Therefore, our facilities have wastewater systems and oil recovery units. These units separate reusable water from oil streams, reducing freshwater use and improving discharged water quality. For more detail, see the Environmental Stewardship section in this report.

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RESILIENCE AND ADAPTATION We maintain and test robust business continuity planning and preparedness programs and other initiatives. Examples include: •

• •

Hardening assets to enhance their reliability, including our industry-leading pipeline river crossing program and the power substation elevation at Bayway Refinery in Linden, New Jersey Installing a state-of-the-art power distribution facility at Wood River Refinery in Roxana, Illinois, improving facility reliability and reducing flaring from unplanned events Providing comprehensive community awareness, education and outreach programs to ensure that everyone living or working near pipelines or facilities is aware of their existence, adopts safe digging practices, learns the signs of a potential pipeline leak and knows how to respond quickly if a problem is suspected

GHG METRICS AND TARGETS The majority of our GHG emissions are from refining. Our goal is to improve our operational excellence, improve our energy efficiency and reduce our GHG emissions intensity. We have set a goal for our refining sites to achieve top-third energy efficiency by 2030. We use a third-party industry manufacturing energy-efficiency index to measure our progress. In the fall of 2021, Phillips 66 became an ENERGY STAR Partner to reflect our commitment to improving energy efficiency. Our refineries process a combined average of about 2 million barrels per day of crude oil into clean, affordable everyday energy products. Most of our Scope 1 GHG emissions are CO2, resulting from manufacturing energy products. Our methane and other GHG emissions are negligible. More stringent regulatory standards can require more processing, which takes more energy.

Sweeny Hub Fractionator 4 OLD OCEAN, TX

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PHILLIPS 66 2022 SUSTAINABILITY REPORT


In 2021, we announced 2030 targets to reduce the GHG emissions intensity of our operations (Scope 1 and 2) and products (Scope 3) by 30% and 15%, respectively, from a 2019 baseline.* These medium-term targets are tied to projects currently underway and projects that are planned or under development consistent with the company’s disciplined approach to capital allocation and focus on returns. These projects: • •

• • • •

Improve the energy efficiency of our operations Grow production and blending of renewable fuels and lower-carbon supply chain products such as premium coke and lubricants Produce commercial-scale low-carbon-intensity hydrogen Capture carbon from our operations Increase renewable power sources to use in our operations Support enterprise growth and portfolio optimization

Our 2030 targets are based on many factors, including planned projects that may be impacted by future equipment turnarounds and maintenance periods. These periods can vary by two to five years and may be affected by operational, materials or labor availability, and market demands. As a result, reductions are not anticipated to be ratable year over year. In 2021, we advanced permitting for conversion of our Rodeo facility, decided to convert the Alliance Refinery to a terminal and progressed several other lower-carbon initiatives. *Ernst & Young LLP provided limited assurance for certain 2019 GHG data

In 2022, we continue to progress our planned projects and are on track to meet our emissions intensity reduction targets. For more details on GHG data, see the Performance Data section of this report. Achieving our 2050 target to reduce Scope 1 and 2 manufacturing-related emissions intensity by 50% will require changes beyond Phillips 66’s sphere of influence and control, such as: • • • •

Advancements enabling broad commercial deployment and use of lower-carbon technologies Global policies that fund and incentivize the development of a lower-carbon energy system Changes in consumer behavior and energy choices Available materials throughout the supply chain

Our commitment to sustainability is also reflected in changes to our employee bonus program. In 2021, the board’s Human Resources and Compensation Committee increased the weighting of environmental factors in our Variable Cash Incentive Program from 5% to 15%. In addition, we added metrics for advancing lower-carbon investments, optimization and innovation, reducing manufacturing emissions intensity, and setting GHG emissions-intensity reduction targets. Phillips 66 recognizes the importance of credible disclosure to shareholders. Reputational and potential economic harm could result from setting emissions reduction targets outside our current understanding of feasible and economic pathways. We are committed to reassessing our targets in step with technological developments, policy changes and consumer energy demand trends.

SCOPE 1 AND 2 MANUFACTURING-RELATED GHG EMISSIONS INTENSITY

SCOPE 3 PRODUCT-RELATED GHG EMISSIONS INTENSITY

(Metric Tons CO2e/MBOE)

(Metric Tons CO2e/MBOE)

30% reduction from baseline

15% reduction from baseline

50% reduction from baseline

36.5

37.3

37.5

380

374

366 323

25.5 17.6

data has been assured by Ernst & Young LLP. To learn more, read the2019 external assurance statement. 2019 *2019 2020GHG2021 2030 2050 2020 2021 Baseline Actual Actual Target Target Baseline Actual Actual

2030 Target

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Stakeholder Engagement

Power Ahead marketing conference LAS VEGAS, NV

54

PHILLIPS 66 2022 SUSTAINABILITY REPORT


We provide Good Energy to improve the lives in the communities where we live and work.

STAKEHOLDER ENGAGEMENT

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Stakeholder engagement is part of our commitment to social responsibility. Our approach is one of mutual respect. This means respecting human rights, demonstrating our values through our actions and being a good neighbor. Our stakeholders include employees, shareholders, investors, customers, communities where we operate, Indigenous peoples, legislators and energy consumers. They enable us to fulfill our purpose and execute our strategy. Reaching out and listening through open lines of communication is a priority for us. We respect human rights by demonstrating our values through our actions and by being a good neighbor. We conduct our operations in compliance with all applicable laws, including environmental laws, regulations and policies. In alignment with the EPA's definition of environmental justice, we believe in the fair treatment and meaningful involvement of all people regardless of race, color, national origin or income. Our processes provide a proactive, measured and responsive approach to stakeholder engagement. In this report, we are focusing on our external stakeholder engagement activities. Our Human Capital Management Report offers an in-depth look at the programs and policies that support our employees. It covers such topics as inclusion and diversity, employee programs, employee resource groups, philanthropy, compensation and benefits. As we progress through the energy transition, we are committed to preparing our highly skilled employees for evolving job opportunities. The Human Capital Management Report, linked below, expounds upon the training, education and skills development we offer our employees. We reviewed the World Benchmarking Alliance (WBA) Assessment and Methodology on just transition, and, while the topic and definition of just transition are evolving, Phillips 66 is directionally aligned with the WBA social dialogue and planning transition indicators. We will monitor and participate in the development of these frameworks as they pertain to our businesses. One example of our approach to just transition for employees, labor unions, government and communities is reflected in the Rodeo Renewed project.

For more details on programs and policies that support our employees, see the Human Capital Management Report.

Building Trust in Our Communities Building local capacity for resilience and preparedness is part of our commitment to our values, human rights, environmental protection and rapid response. We participate in community safety and preparedness programs and proactively support local police, fire and emergency management personnel to bolster their resources, providing every community where we have facilities with equipment, experience or other resources. We maintain open communication channels with the communities surrounding our facilities and regularly participate in dialogue on safety concerns, feedback and grievances. This includes community awareness, education and listening panels, social media, and our community hotlines. Concerned citizens can call our Midstream community relations hotline at 832-765-3887 or 24-hour hotlines for each of our refineries. We cast wide nets internally and externally to identify trends and materiality issues that may be important to our stakeholders so that we can collect and understand essential data and perspectives. We tap into various sources inside and outside the sector, across countries and political views, and cover physical, policy, human capital, reputational risk and opportunities-related information. We routinely acquire additional information about stakeholder interests from sources including customers, in-person interviews and surveys. Data comes from investors, service companies, consultants, industry bodies, research firms and analyst reports. We also rely on sources such as governmental databases, environmental and social nongovernmental organizations, global policy bodies, ratings agencies and indices, community advisory boards, and scorers and activists in Environmental, Social and Governance (ESG) areas. 56

PHILLIPS 66 2022 SUSTAINABILITY REPORT


TRUCKERS AGAINST TRAFFICKING Phillips 66 is a platinum sponsor of Truckers Against Trafficking, an organization that educates truck drivers on how to spot potential human trafficking and what to do. In 2021, we launched computer-based training to teach field employees to notice and report the signs of potential human trafficking.

REACHING OUT TO OUR REFINERY COMMUNITIES Our Refining operations have well-established Community Advisory Councils or Panels (CACs or CAPs) that represent a cooperative and empowering environment for collaboration in the community. CACs and CAPs include company representatives and community members who meet regularly. Leaders from Refining and, in some instances, Midstream and Lubricants operations provide feedback on performance and share insights on plans and activities. The Wood River CAP also serves our Midstream and Marketing and Specialties operations in the area. The Billings CAC covers the Refining and Midstream operations there. CACs and CAPs are also communication channels for safety issues, feedback and grievances. Leaders are focused on their communities and breaking down communication barriers, taking into account members' preferences to respond to community needs. Discussions such as these help us plan for the next five to 10 years and ensure that we keep our communities top of mind.

COMMUNITY AWARENESS ABOUT PIPELINES Our Midstream operations are responsible for pipelines across 17 states and over 230 counties. Our pipeline operators have year-round community awareness, education and listening panels to stay in touch with people who are involved with and affected by our extensive pipeline network. 811: Call Before You Dig! Phillips 66 operates about 12,800 miles of U.S. pipeline systems, and the safety of the people who live and work nearby is a priority. U.S. government and oil industry statistics show that the most common cause of pipeline incidents is improper or unauthorized digging. If someone puts a shovel or heavy machinery in the ground without knowing there's a pipeline buried beneath, they can cause serious damage.

We identified and geofenced home improvement stores, landscapers and nurseries, heavy equipment sales and rental stores, planning and zoning buildings, and road department and public works buildings close to our pipelines. When someone entered geofenced locations, their phones, laptops and tablets received Phillips 66 and 811 Call Before You Dig ads linked to stakeholder-specific portions of the pipeline safety website.

The program was a success. In 2021, we implemented geofencing campaigns near the U.S. pipelines that saw the most excavation activity. The campaigns generated over 4 million impressions, increased the traffic to our pipeline safety website by an average of 160% year over year and introduced more than 20,000 new users to our site. We also That's why our pipeline operations business maintains an initiated additional audience-specific e-campaigns 811 call center, and it has handled more than 1.6 million during Safe Digging Month, enhanced our school calls since 2012. Phillips 66 also offers specialized outreach programs to increase pipeline safety programs for farmers, ranchers, emergency officials awareness and emergency preparedness, and and schools. shared access to our response action plans for local emergency responders. In 2020, we began collecting real-time data via the Phillips 66 Damage Information Reporting Tool, We're also spreading the word with a 28-foot tall known as DIRT, and discovered a high number of by 95-foot long 811 message on a highway-adjacent unauthorized excavations in specific locations. storage tank at our Pasadena Terminal in Texas Because of the potential danger, we launched a media and through our road transport subsidiary, Sentinel geofencing campaign. Transportation. We put 811 decals on the Sentinel tankers, and because the fleet travels 24 million miles a year, millions of people see the message. STAKEHOLDER ENGAGEMENT

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CONNECTING WITH INDIGENOUS PEOPLES Phillips 66 has been working with Indigenous peoples to build meaningful relationships and honor them and their connection to the land in the regions where we do business. As Todd Denton, our Senior Vice President for Health, Safety and Environment, and Projects, said at a company forum during Native American History Month, "Getting diverse Indigenous perspectives is invaluable to us as a company and industry. We want Native American people to know Phillips 66 is engaged with the tribes and Indigenous peoples." We work with tribal representatives when repairs or updates need to be made to pipelines or other assets on or near land that is important to them. For example, in the summer of 2021, Midstream leadership met with members of the Osage Nation to discuss replacing parts of the Cherokee East Pipeline between Ponca City and Glenpool, Oklahoma, which crosses native lands.

Planting the Seeds of Cultural Appreciation Outside the Phillips 66 Research Center in Bartlesville, Oklahoma, you'll find three plants intertwined in an example of Native American agricultural tradition — the Three Sisters garden. In spring 2021, members of our Native American Network Employee Resource Group planted this small garden of corn, beans and squash. This method of companion planting is called a Three Sisters garden because the three plants support one another as they grow, deterring pests and increasing total crop output. Group members say these crops are the center of Native American agriculture and cuisine and provide a starting point for talking about inclusion, diversity and cultural awareness.

Three Sisters garden BARTLESVILLE, OK

AT A GLANCE

Indigenous Peoples STEM Education Support

58

$110,000

Top 50

$30,000

contributed to the American Indian Science and Engineering Society and its efforts to bring more Indigenous students into STEM studies

workplace for Indigenous STEM Professionals awarded by AISES Winds of Change Magazine

contributed by the Ferndale Refinery, as the title sponsor of the Annual Auction for the Lummi Nation Boys & Girls Club

PHILLIPS 66 2022 SUSTAINABILITY REPORT


Seeking Different Perspectives: A Salinan Tribal Cultural Resource Monitor Talks About Working With Phillips 66 Another example of working together with Indigenous peoples comes from the central coast of California. Phillips 66 purchased pipeline assets from another company and is now working to remediate the soil, which was contaminated decades ago. The active pipeline runs through 20 acres of a working ranch, with a rich history going back for centuries. That means any project on this land has the potential for significant cultural considerations. This site, in Santa Margarita, California, is known to have been inhabited by Native Americans, Spanish missionaries and others. In situations like this, when local, state or federal agencies determine that ground-disturbing work in the soil is required in some areas, we work with tribal representatives — often from more than one tribe — and archeologists so that any artifacts or remains recovered can be handled properly and respectfully. Robert Piatti, the Cultural Resource Monitor Lead for the Salinan Tribe of San Luis Obispo and Monterey counties, worked with crews on the site. He says some of the artifacts and remains found at this site could be 700 to 800 years old or even older. This was the first time he’d worked with Phillips 66, and, he says, what stood out to him was that most of the tribes with interest in the land were included in discussions, which doesn’t always happen. "We kept an open line of partnership from the get-go, which was really important … If [a company is] not willing to do what they did in this case and participate and have those conversations, and address the issues that happen, it can be confrontational."

It is very important that there is a participatory and genuine care given to stakeholders of any direction — from the Native Americans to the landowner. It is important that everyone have a voice.” ROBERT PIATTI Salinan Tribe of San Luis Obispo and Monterey counties Cultural Resource Monitor Lead

Piatti says monitoring a site where remains and cultural items are buried can be emotionally difficult, but it’s necessary. Despite the challenging nature of the situation, Piatti says he enjoyed getting to know the Phillips 66 employees at the site and seeing their dedication to serving the greater good and doing the right thing. He says his voice is one of many first-hand views that could be shared, "I appreciate the people, the care and consideration. They did more than they had to and I feel good about the direction forward."

Getting diverse Indigenous perspectives is invaluable to us as a company and as an industry.

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SOCIAL RISK ASSESSMENT PROGRAMS AND PRACTICES We adhere to local and national laws and regulations regarding environmental, social and health assessments before starting operations at a new site, including pipelines. We conduct a comprehensive social risk assessment for new projects to understand the people and concerns along a proposed route. We provide up-to-date information to stakeholder communities about potential impacts and environmental, health and safety aspects of our work. We regularly update and disseminate information through press releases, our website, social media, and, in some cases, door-to-door flyer distribution. We also hold public consultations at which we encourage dialogue and welcome feedback from our stakeholders. We are proud to meet or exceed regulatory requirements and industry best practices for informing the public about our operations. Our public awareness programs have been benchmarked as top-of-industry. MEDIA We maintain local, national and trade media relationships as part of our commitment to communication and transparency with our stakeholders. We are responsive to inquiries and proactively share information with news outlets. In the event of an incident, we strive to ensure that community information is available within an hour. INVESTORS AND BANKS We proactively engage with many of our banks and investors, including socially responsible investors, to update them on our progress, discuss items of interest or concern, and learn about their stakeholders' topics of interest. Regular communication enables these stakeholder groups to fulfill commitments related to Principles for Responsible Investments, a voluntary set of investment principles related to integrating sustainability issues in investment decision-making processes. CUSTOMERS We know sustainability is important to our customers, and we engage with them because they are a valuable stakeholder. They distribute the products we make to consumers and businesses. We market petroleum products through wholesale and joint venture outlets under the Phillips 66, Conoco, 76, JET and Coop brands, primarily in the United States, United Kingdom, Germany, Austria and Switzerland — among many others.

7,110 branded U.S. outlets

1,700 branded international outlets

JET branded station LONDON, UNITED KINGDOM

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PHILLIPS 66 2022 SUSTAINABILITY REPORT


Working for the Greater Good in the Community Phillips 66 takes seriously our corporate responsibility to our employees, our communities and our environment. Living our core values of safety, honor and commitment, we create purposeful partnerships and work to strengthen economic, social and environmental resilience and sustainability in the communities where our employees live and work. Good Energy, our employee volunteerism program, was designed to inspire employees to connect with our neighbors and share our compassion, talents and hard work to improve our communities.

PROVIDING RELIEF IN A FOOD DESERT The northern part of Lake Charles, Louisiana, is what the U.S. Department of Agriculture classifies as a "food desert." That means people have limited access to healthy food options. To help families in need, Phillips 66 donated funds and helped distribute 60,000 pounds of meat, produce and other food items to 400 Lake Charles families.

AT A GLANCE

Social Impact Our corporate philanthropy program is one way we live our values, support our stakeholders and contribute to the sustainability of our communities. It is based on the four key areas below. EDUCATION AND LITERACY • In Montana, we provided a grant for Crow Tribe education to the Plenty Doors Community Development Corporation, a Native American-led nonprofit that promotes food access, supports cultural sharing and offers resources for small businesses, including technical assistance and education •

Phillips 66 Midstream employees donated funds to Tulsa Public Schools in Oklahoma through Elevate Our Kids, a nonprofit organization that supports childhood education in under-resourced communities

COMMUNITY SAFETY AND PREPAREDNESS In 2021, Hurricane Ida affected our Alliance Refinery in Louisiana, our Bayway Refinery in New Jersey and our Midstream operations. Phillips 66 contributed $1 million to the American Red Cross to provide shelter, relief supplies, food and other necessities to people impacted by the storm.

ENVIRONMENT • More than 70 employees and contractors helped the Bayway Refinery's Veterans Network Employee Resource Group beautify an amphitheater and internal courtyard at a retirement home for military veterans •

The Linden Blue Acres Floodplain Restoration Project, sponsored by Phillips 66, among others, was awarded a 2021 Land Ethics Award by Bowman’s Hill Wildlife Preserve

The Lake Charles Manufacturing Complex won an Outstanding Community Service award from the Louisiana Recreation and Parks Association State Conference for our contributions to park beautification

CIVIC ENRICHMENT • Phillips 66 employees and families participated in the Harrington Cancer and Health Foundation’s 24 Hours in The Canyon mountain and road bike event in Palo Duro Canyon near Amarillo, Texas, to provide resources for cancer survivors •

The Ferndale Refinery Veterans Network raised funds for Brigadoon Service Dogs, which provides service dogs for veterans STAKEHOLDER ENGAGEMENT

61


Performance Data PERSONAL & PROCESS SAFETY

2020

2021

GRI

SASB

0.15

0.11

0.12

403-9

EM-RM-320a.1

0.13

0.08

0.12

2017

2018

2019

Combined Total Recordable Rate (TRR)1

0.15

0.14

Employee TRR

0.16

0.11

Contractor TRR

0.13

0.16

0.16

0.13

0.12

Midstream Combined TRR

0.27

0.18

0.19

0.12

0.03

Midstream Employee TRR

0.27

0.18

0.19

0.12

0.00

Midstream Contractor TRR

0.18

0.23

0.15

0.20

0.05

0.22

0.30

0.24

0.36

0.34

Refining Combined TRR

0.16

0.15

0.18

0.13

0.15

Refining Employee TRR

0.18

0.11

0.15

0.13

0.19 0.12

Personal Safety

API EHSG Benchmark²

Refining Contractor TRR

0.15

0.17

0.20

0.14

0.32

0.30

0.33

0.35

Combined Lost Workday Case Rate (LWCR)⁴

0.04

0.05

0.03

0.02

0.04

Employee LWCR

0.05

0.05

0.05

0.03

0.06

Contractor LWCR

0.03

0.04

0.03

0.02

0.03

Midstream Combined LWCR

0.18

0.06

0.03

0.02

0.00

Midstream Employee LWCR

0.24

0.06

0.06

0.00

0.00

Midstream Contractor LWCR

0.12

0.06

0.00

0.04

0.00

Refining Combined LWCR

0.02

0.04

0.05

0.04

0.06

Refining Employee LWCR

0.03

0.03

0.06

0.06

0.09

Refining Contractor LWCR

0.02

0.04

0.04

0.02

0.03

0.08

0.08

0.08

0.16

AFPM Benchmark³

AFPM Benchmark³ Combined Fatalities count

1

1

0

0

0

Employee Fatalities count

1

0

0

0

0

Contractor Fatalities count Combined Fatality Rate⁵

1

0

0

0

0.003

0.000

0.000

0.000

Employee Fatality Rate

0.007

0.000

0.000

0.000

0.000

Contractor Fatality Rate

0.000

0.006

0.000

0.000

0.000

Vehicle Safety Midstream Vehicle Safety Rate⁶

3.87

1.79

1.41

0.86

1.02

API EHSG Benchmark²

1.88

1.97

1.26

0.98

1.36

Process Safety Combined Tier 1 & Tier 2 Process Safety Event Rate⁷

0.16

0.18

0.20

0.14

0.13

Tier 1 Process Safety Event Rate

0.03

0.05

0.06

0.02

0.05

Midstream Tier 1 Process Safety Event Rate

0.09

0.24

0.08

0.02

0.08

Refining Tier 1 Process Safety Event Rate

0.02

0.02

0.06

0.02

0.05

0.08

0.06

0.06

0.06

AFPM Benchmark³ Tier 2 Process Safety Event Rate⁷ Midstream Tier 2 Process Safety Event Rate Refining Tier 2 Process Safety Event Rate AFPM Benchmark³

62

0 0.003

PHILLIPS 66 2022 SUSTAINABILITY REPORT

0.13

0.13

0.14

0.12

0.33

0.35

0.38

0.1

0.08 0.14

0.12

0.11

0.12

0.14

0.08

0.19

0.17

0.16

0.13

403-9

403-9

EM-RM-320a.1

EM-RM-540a.1


GREENHOUSE GAS 8

UNIT OF MEASURE

2017

2018

2019

2020

2021

GRI

million metric tons CO₂e

29.0

29.3

30.1

25.5

30.3

305-1

4

11 0.005

SASB

Direct GHG Emissions (Scope 1)⁹ Direct GHG Emissions (Scope 1) - All GHGs Methane

% of All GHGs

Methane

million metric tons CH₄

0.003

0.004

0.005

0.004

Midstream - All GHGs

million metric tons CO₂e

0.4

0.4

0.4

0.5

0.5

0.004

0.005

0.005

0.007

0.007

Methane Downstream - All GHGs

million metric tons CO₂e

Methane Indirect GHG Emissions from Imported Energy (Scope 2)10

28.6

28.9

29.7

25.0

29.8

0.067

0.100

0.109

0.100

0.100

305-1.a EM-MD-110a.1 EM-RM-110a.1

million metric tons CO₂e

Indirect GHG Emissions (Scope 2) - All GHGs

4.8

4.8

5.4

4.6

4.5

0.3

0.4

0.4

0.5

0.3

4.4

4.3

5.0

4.0

4.1

382

313

350

305-3

Scope 1 and 2 Manufacturing-Related Emissions Intensity

36.5

37.3

37.5

305-4c

Scope 3 Product-Related Emissions Intensity

380

374

366

305-4c

GRI

SASB

306-3

EM-MD-160a.4

Midstream - All GHGs Downstream - All GHGs Indirect GHG Emissions from Products (Scope 3)¹¹

million metric tons CO₂e

Indirect GHG Emissions (Scope 3) - All GHGs Intensity - GHG Emissions¹²

ENVIRONMENTAL

305-2a

metric tons CO₂e/MBOe

UNIT OF MEASURE

2017

2018

2019

2020

2021

Environmental Events¹³

count

103

112

119

75

119

Spills beyond secondary containment¹⁴

count

21

36

27

18

26

Spills beyond secondary containment - volume

bbls

2,936

5,598

2,754

357

5,203

Spills to land¹⁵

bbls

2,757

5,598

1,654

132

5,149

Spills to water

bbls

179

0

1,100

225

55

%

18

22

90

94

74

bbls

523

1,222

2,479

336

3,827

count

20

19

18

7

8

Midstream spills - volume

bbls

2,869

4,648

1,403

25

157

Midstream spills to land

bbls

2,567

4,624

257

5

148

Midstream spills to water

bbls

179

0

1,100

0

0

Midstream spill volume recovered¹⁸

bbls

417

275

1,181

17

33

Events and Spills

Spill volume recovered¹⁶ Spill volume recovered Midstream Spills¹⁷

EM-MD-160a.4 306-3

Air Emissions Total Emissions (NOx-PM-SOx-VOC)

thousand metric tons

40.8

40.6

38.3

35.5

34.5

NOx

thousand metric tons

12.2

12.4

12.6

11.5

11.6

PM

thousand metric tons

2.9

3.2

2.7

2.3

2.5

SOx

thousand metric tons

9.5

8.7

7.8

7.5

7.3

VOCs

thousand metric tons

16.2

16.3

15.3

14.3

13.1

Midsteam NOx

thousand metric tons

0.5

0.6

0.6

0.9

0.9

Midstream PM

thousand metric tons

0.0

0.0

0.0

0.0

0.0

Midstream SOx

thousand metric tons

0.1

0.1

0

0.1

0.0

Midstream VOCs

thousand metric tons

2.2

2.4

2

2.6

2.7

Refining NOx

thousand metric tons

11.7

11.8

12

10.6

10.7

Refining PM

thousand metric tons

2.8

3.2

2.6

2.2

2.4

Refining SOx

thousand metric tons

9.5

8.6

7.8

7.5

7.3

Refining VOCs

thousand metric tons

12.9

12.9

12.3

10.7

10.4

305-7a

EM-MD-120a.1

EM-RM-120a.1

PERFORMANCE DATA

63


UNIT OF MEASURE

2017 2018 2019 2020 2021

Water19 Freshwater withdrawn²⁰ Freshwater withdrawn in water-stressed areas²¹

million bbls

1,031

1,057

1,029

759

895

%

29

30

28

39

36

1.19

1.20

1.17

1.06

1.15

million bbls

330

358

318

335

400

%

46

43

37

39

37

Freshwater withdrawal intensity²² Freshwater consumed²³ Freshwater consumed in water-stressed areas Freshwater discharged²⁴

million bbls

Freshwater discharge intensity²²

541

544

517

511

495

0.62

0.62

0.59

0.71

0.64

GRI 3033.c.i 3033.c.i

3034.b.i

72

72

69

71

68

Non-freshwater withdrawal used for once-through cooling water (OTCW)²⁵

%

93

93

96

94

95

Waste & Recycling Hazardous waste generated²⁶

million metric tons

0.04

0.02

0.03

0.03

0.04

306-3

Non-hazardous waste generated²⁶

million metric tons

0.24

306-3 3064b.ii

IT Hardware e-waste recycled²⁸

175

141

thousand lb

159

124

184

170

171

224

46

EM-RM-140a.1

EM-RM-140a.1

%

thousand metric tons

EM-RM-140a.1

3034.b.i

Water discharge to freshwater and municipalities

Recycled Materials²⁷

SASB

EM-RM-150a.1

Product Specifications and Clean Fuels Blends Purchase of Separated Renewable Identification Numbers (RINs)

%

40

41

49

52

EM-RM-410a.1

Processing, Reliability, and Energy Utilization¹⁹

%

95.1

95.2

93.7

76.2

84

Processed Inputs Refining, global

million bbls

859

872

872

710

776

Processed Inputs Refining and NGLs, global

million boe

973

807

926

Renewable Feedstocks Purchased²⁹

million bbls

Refined Petroleum Products and NGLs Fractionated, global

million boe

1005

838

956

480

471

490

Total energy consumption³⁰

trillion BTUs

EM-RM-000.A

2.6

469

471

Exported electricity³¹

billion killowatt-hours

Power consumed³²

billion killowatt-hours

9.3

Energy Intensity³³

million BTU / bbl

0.5

302-1e

2.5 302-3a

Pipeline Managed Pipelines

thousand miles

22

22

22

Hazardous liquids pipeline inspections completed per plan³⁴

%

100

Pipelines near ecologically sensitive areas³⁵

%

12

EM-MD-540a.2 304-1

Social36 Number of employees

64

count

14,600 14,200 14,500 14,300 14,000

Employees - Represented by unions³⁷

%

34

35

38

37

33

Employees - Women

%

22

21

21

20

20

Employees - Underrepresented minority group³⁷

%

25

26

26

27

28

Employees - Generation Z

%

1

2

3

4

5

Employees - Millennials

%

36

38

40

41

43

Employees - Generation X

%

38

39

39

39

39

Employees - Baby Boomers

%

25

21

19

16

13

Retention rate³⁸

%

97

97

97

98

96

Interns - Women³⁷

%

42

40

48

44

39

Interns - Underrepresented minority group³⁷

%

36

25

31

38

39

PHILLIPS 66 2022 SUSTAINABILITY REPORT

405-1

401-1


2021 EEO-1 DATA 37 Hispanic or Latino Job Categories Executive/Sr. Officials & Mgrs

White

Black or African American

Native Hawaiian or Pacific Islander

American Indian or Alaskan Native

Asian

Two or more races

Total

Male Female Male Female Male Female Male Female Male Female Male Female Male Female 4

2

44

14

-

1

-

-

4

1

3

1

-

-

74

First/Mid Officials & Mgrs

152

26

1,281

283

76

23

3

1

58

26

32

14

10

4

1,989

Professionals

3,769

203

119

1,938

803

110

90

6

2

215

130

53

46

35

19

Technicians

8

3

96

40

7

7

-

-

7

2

15

3

4

3

195

Sales Workers

8

1

116

24

3

-

-

-

5

2

1

-

-

-

160

Administrative Support

38

51

253

314

36

72

1

1

13

12

15

21

5

4

836

Craft Workers

231

6

1,255

31

81

2

16

-

20

1

33

2

17

2

1,697

Operatives

472

18

2,115

172

302

42

13

1

48

5

54

2

38

5

3,287

Laborers & Helpers

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Service Workers

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

1,116

226

7,098

1,681

615

237

39

5

370

179

206

89

109

37

12,007

Total

UNIT OF MEASURE

2017 2018 2019 2020 2021

GRI

SASB

Philanthropy and Volunteerism Charitable donations Employee volunteerism Schools supported³⁹

millions U.S. dollars

28

32

27

thousand hours

88

53

67

600

611

count

Financial Net Income (Loss) Attributable to Phillips 66

millions U.S. dollars

5,106

5,595

3,076 (3,975)

1,317

Governance Board Composition: Independent Directors

%

91

Board Composition: Diversity (women + ethnic minorities)

%

45

405-1

Board Composition: Women

%

45

405-1

Board Composition: Ethnic minorities

%

9

405-1

Ethics violations allegations received

count

-

Ethics violations allegations investigated

%

-

Anonymous/provided name

%

-

-

30

30

45

181

218

191

224

100

100

100

100

44/56 38/62 40/60 35/65

Cybersecurity Inbound email inspected for malicious activity

%

100

Albuquerque International Balloon Fiesta ALBUQUERQUE, NM

PERFORMANCE DATA

65


PERFORMANCE DATA NOTES 1

As defined by the Occupational Safety and Health Administration (OSHA). All rates are calculated as incidents per 200,000 work-hours.

2

American Petroleum Institute for combined rates, Environmental, Health, and Safety Group benchmarks for Midstream.

3

American Fuel & Petrochemical Manufacturers, U.S. refining benchmark for combined rates.

4

Also known as Lost Time Incident Rate, as defined by OSHA. All rates are calculated as incidents per 200,000 work-hours. Includes employees and contractors.

5

Calculated using the OSHA incident rate formula. Incidents per 200,000 work-hours.

6

7

8

9

10

11

66

Number of motor vehicle incidents x 1 million miles ÷ business use miles driven. Business use of a company-owned, leased or rented vehicle includes all miles driven while on duty, including commuting to and from work, driving to and from a call-out location and going to and from lunch. Tier 1 and Tier 2 Process Safety Events differ by release rate, type of product and impact as defined by the American Petroleum Institute RP-754. The company reports 100% of the Scope 1, 2 and 3 GHG from assets over which it has operational control. Operated joint ventures such as WRB Refining and Excel Paralubes are included on a 100% basis; non-operated joint ventures such as CPChem LLC and DCP Midstream, LLC are not included. Emissions are inclusive of carbon dioxide (CO₂), methane (CH₄), and nitrous oxide (N₂O). Other GHG emissions are not considered to be material to our operations and are therefore excluded. Downstream refers to operations from Refineries and lubricants facilities. The global warming potentials for each GHG are sourced from the Intergovernmental Panel on Climate Change Fourth Assessment Report, Appendix A: Global Warming Potentials. For emissions data post-2018, absolute Scope 1, 2 and 3 emissions are reported in accordance to the World Resources Institute/World Business Council for Sustainable Development’s GHG Protocol, and emissions intensity calculations follow the Global Reporting Initiative Sustainability Reporting Standards Disclosure GRI 305-4. Phillips 66 calculates and reports emissions in accordance with the mandatory reporting requirements such as the U.S. EPA’s Mandatory Greenhouse Gas Reporting Program and EU Emissions Trading System (EU ETS). Regulatory frameworks may differ from the frameworks referenced in this report and, accordingly, agency data may vary. Scope 1 direct GHG emissions by the company, such as fuel combustion and fugitive emissions, including those from operated refineries, NGL fractionators, pipelines, terminals, lubricants facilities, corporate headquarters and research facilities, are calculated utilizing actual emissions data. If actual data was not available, emissions were calculated utilizing emission factors referenced in the U.S. EPA’s Mandatory GHGRP for all U.S. assets and the EU ETS for European assets. Phillips 66 does not include emissions from operated vehicles. Scope 2 indirect emissions are from imported electricity and steam used in our operated refineries, NGL fractionators, pipelines, terminals, lubricants facilities, corporate headquarters and research facilities. The Sweeny cogeneration unit is assumed to supply all electricity to the Sweeny NGL Fractionator. Consistent with the market-based method guidance, supplier-specific emission factors were utilized where available. If supplier-specific emissions factors were not available, EPA eGRID regional emissions factors for CO₂, CH₄ and N₂O were utilized. Contractual instruments (e.g., renewable energy credits or renewable power purchase agreements) are not included in Scope 2 emissions. Product-related emissions include Scope 3 emissions from products manufactured in operated Refining assets and NGL fractionators. Our products include jet fuel, gasoline, diesel, fuel oil, petroleum coke, NGLs and other products. The data in this report assumes that all fuels are 100% combusted by the end user for purposes of calculating Scope 3 Category 11 emissions. Non-fuels products, such as sulfur, are not combusted by the end user and therefore are not included in these Scope 3 estimates. For U.S. assets, GHG emissions are calculated using the EPA factors identified in Table MM-1 of 40 CFR Part 98 as of March 2020. GHG emissions for NGL fractionators are calculated using the EPA factors identified in Table NN-1 of 40 CFR Part 98 as of March 2020. All Phillips 66 NGL fractionators are in the United States. For European assets, GHG emissions are calculated using U.K. Government Conversion Factors for GHG emissions as of July 2020.

PHILLIPS 66 2022 SUSTAINABILITY REPORT

12

Manufacturing-related intensity is calculated as Scope 1 and 2 metric tons of CO₂e divided by processed inputs. Processed inputs include feedstocks, primarily crude and NGLs, processed in operated global Refining, Excel Paralubes and NGL fractionators. Product-related intensity is calculated as Scope 3 from Use of Sold Products metric tons of CO₂e divided by total products produced. Total products produced include all refined petroleum products, combusted and not combusted by the end user, and NGLs fractionated at our operated assets. Products moved through pipelines and terminals are excluded.

13

Environmental events are those that result in an exceedance of the permit or regulatory-based numeric emissions limit, or a significant release of hydrocarbon or chemical. The count is of events that require immediate agency notifications.

14

Spills represent liquid hydrocarbons from operating assets that reach land or water and are >1 bbl.

15

More than 80% of 2021 spills due to 2 incidents. Lessons learned have been shared widely across the organization.

16

Spills beyond secondary containment; includes free product recovered; does not include remediated soil.

17

Midstream liquid hydrocarbon spills outside primary containment.

18

Includes free product recovered; does not include remediated soil.

19

Refining only.

20

Freshwater is defined as water that has low salinity – usually less than 0.1% (local legal definitions vary). The reported value includes freshwater used as once-through cooling water. Water recycle practices are prevalent within Phillips 66, and result in reduced water withdrawn. Examples include reuse of intermediate refinery streams and optimization of cooling tower and boiler systems to improve water use efficiency.

21

The World Resources Institute Aqueduct™ Water Risk Atlas is used to identify areas with high water demand or potential for water scarcity in the future. Sites are classified as water scarce if withdrawing and consuming water in locations with High (40%-80%) or Extremely High (>80%) Baseline Water Stress as classified by the Aqueduct™ Water Risk Atlas. Water use in water scarce areas is expressed as a percentage of the total freshwater use.

22

1000 bbls of water per 1000 bbls of processed inputs.

23

Water consumed is primarily due to evaporative losses (e.g., operation of cooling towers).

24

Water that has been treated to meet National Pollutant Discharge Elimination System permits.

25

A minority of sites use once-through cooling towers and these sites operate to achieve a high percentage of non-freshwater usage.

26

Includes Refining, Midstream and Lubricant facilities.

27

Includes refinery process catalyst captured for metals reclamation, such as metal, glass and paper from other business units.

28

E-waste recycled includes all electronic-waste avoiding landfills by being refurbished or recycled.

29

Soybean oil, canola oil and corn oil, used cooking oil and tire pyrolysis oil.

30

Total combustion energy is imported electricity, site-generated electricity (cogeneration plants) and imported steam for all operated assets.

31

Electricity exported to the grid and third parties from cogeneration plants at our refineries.

32

Power consumed is from imported electricity and site-generated electricity from cogeneration plants.

33

Energy Intensity ratio for operated assets.

34

New disclosure in 2021. Data are based on inspection frequency requirements in 49 CFR 195.452. The plan covers 19.3% of hazardous liquid pipelines. Non-regulated pipelines are excluded.

35

New disclosure in 2021. Active and operated pipelines near ecologically sensitive areas as defined by Pipeline and Hazardous Materials Safety Administration (PHMSA). Pipelines may not actually intersect or cross sensitive areas.

36

Data represents our global workforce and includes Sentinel Transportation, LLC, unless otherwise noted.

37

U.S. workforce.

38

Retention rate based on voluntary resignations.

39

Schools include primary, secondary, trade, technical and universities.


Performance Data is available in Microsoft Excel format, found on the Phillips 66 Supplemental Information site.

GLOSSARY BBL Barrel (42 U.S. gallons) BPD Barrels per day CO2e CO2 equivalent M Thousand MBOe Thousand barrels of oil equivalent MM Million MMBD Million barrels per day Phillips 66®, Conoco®, 76®, Kendall®, Red Line®, JET® and their respective logos are registered trademarks of Phillips 66 Company or a wholly owned subsidiary. Other names and logos mentioned herein are the trademarks of their respective owners. Printed or other electronic copies are uncontrolled and for reference only. This document may not be reproduced without the permission of Phillips 66. 22-0038 2022 © Phillips 66 Company. All rights reserved.

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CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This document contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Words and phrases such as “is anticipated,” “is estimated,” “is expected,” “is planned,” “is scheduled,” “is targeted,” “believes,” “continues,” “intends,” “will,” “would,” “objectives,” “goals,” “projects,” “efforts,” “strategies” and similar expressions are used to identify such forward-looking statements. However, the absence of these words does not mean that a statement is not forwardlooking. Forward-looking statements included herein are based on management’s expectations, estimates and projections as of the date they are made. These statements are not guarantees of future performance, and you should not unduly rely on them as they involve certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. Factors that could cause actual results or events to differ materially from those described in the forward-looking statements include: the effects of any widespread public health crisis and its negative impact on commercial activity and demand for refined petroleum product; the inability to timely obtain or maintain permits necessary for capital projects; changes to worldwide government policies relating to renewable fuels and greenhouse gas emissions that adversely affect programs like the renewable fuel standards program, low carbon fuel standards and tax credits for biofuels; the pace of technological advances advancements and industry innovation, including those focused on reducing GHG emissions and advancing other climate-related initiatives, and our ability to take advantage of those innovations and advancements; our ability to identify and execute opportunities, including through the positioning and optimization of our assets; our ability to efficiently and economically reduce the carbon intensity of our operations; fluctuations in NGL, crude oil, and natural gas prices, and petrochemical and refining margins; unexpected changes in costs for constructing, modifying or operating our facilities; unexpected difficulties in manufacturing, refining or transporting our products; the level and success of drilling and production volumes around the companies’ assets; risks and uncertainties with respect to the actions of actual or potential competitive suppliers and transporters of refined petroleum products, renewable fuels or specialty products; lack of, or disruptions in, adequate and reliable transportation for NGL, crude oil, natural gas, and refined products; potential liability from litigation or for remedial actions, including removal and reclamation obligations under environmental regulations; failure to complete construction of capital projects on time and within budget; the inability to comply with governmental regulations or make capital expenditures to maintain compliance; limited access to capital or significantly higher cost of capital related to illiquidity or uncertainty in the domestic or international financial markets; potential disruption of operations due to accidents, weather events, including as a result of climate change, terrorism or cyberattacks; general domestic and international economic and political developments; changes in governmental policies relating to NGL, crude oil, natural gas, refined petroleum products, or renewable fuels pricing, regulation or taxation, including exports; changes in estimates or projections used to assess fair value of intangible assets, goodwill and property and equipment and/or strategic decisions with respect to our asset portfolio that cause impairment charges; investments required, or reduced demand for products, as a result of environmental rules and regulations; changes in tax, environmental and other laws and regulations (including alternative energy mandates); the operation, financing and distribution decisions of equity affiliates we do not control; and other economic, business, competitive and/or regulatory factors affecting our businesses generally as set forth in our filings with the Securities and Exchange Commission. Phillips 66 is under no obligation (and expressly disclaims any such obligation) to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise.