Be the leading integrated downstream energy provider.
Zia II Gas Plant HOBBS, NM
LETTER FROM OUR CHAIRMAN AND CEO
To Our Stakeholders,
Providing energy and improving lives is at the heart of everything we do at Phillips 66, and it is my privilege to share with you how our achievements in 2024 reflect that mission.
The energy landscape continues to evolve, and we recognize the challenge and opportunity to meet the world’s lower-carbon energy needs, as well as the need for traditional fuels.
We are committed to delivering affordable, reliable energy and investing in high-return projects that reduce emissions intensity, strengthen asset reliability and provide growth opportunities. Looking ahead, we will continue to pursue strategic investments that align with our vision to be the leading integrated downstream energy provider.
This report details the exceptional achievements of our company and employees in 2024.
We approach our engagement with mutual respect by upholding human rights, living our values through our actions and being a good neighbor.
Our Strategic Approach to Sustainability
Sustainability is integral to our corporate strategy and strengthens the resilience of our portfolio. Our sustainability programs are built on five core principles: financial performance, operating excellence, environmental stewardship, social responsibility and governance.
We maintain ongoing engagement with our stakeholders, including employees, shareholders, customers, the communities where we operate, Indigenous peoples, legislators, financial institutions and energy consumers. We approach our engagement with mutual respect by upholding human rights, living our values through our actions and being a good neighbor.
Operating Excellence
Operating excellence underpins what we do, from prioritizing the safety of our people and communities to striving for continuous improvement in our business and reducing our environmental footprint. In 2024, our focus on operating excellence was critical to Phillips 66 successfully delivering on its strategic priorities.
We matched our record safety rates with a combined workforce total recordable rate of 0.12 and achieved a 38% reduction in injuries from serious incidents. We reported a 15% reduction in Scope 1 and 2 and an 8% reduction in Scope 3 greenhouse gas (GHG) emissions intensity, compared to 2019 baseline levels. In 2025, we also expanded our methane disclosures, which are responsive to shareholder feedback.
Our Refining performance marked a second consecutive year of above-industry-average crude utilization. We achieved cost and capital savings, as well as captured synergies from our wellhead-to-market strategy through the integration of DCP Midstream.
Our strong financial, safety and operational results reflect the commitment and excellence of our high-performing organization.
People and Communities
Our achievements are powered by our people. In 2024, we continued fostering a workplace where individuals feel they belong, have opportunities to develop their careers and thrive in a high-performance environment.
Social responsibility and community partnerships are crucial to our sustainability strategy. Our employees contributed 116,000 volunteer hours as part of our Good Energy program. This impact was amplified by $2.9 million in employee volunteer grants with an additional $4.8 million in matching gifts and United Way campaign contributions. We invested $30 million in community initiatives, focusing on education equity, safety and well-being, social advancement and the environment.
One Team
Our mission of providing energy and improving lives will never waver. By delivering on our strategic priorities and embracing innovation, collaboration and efficiency, we are creating sustainable value for all our stakeholders. This report is a snapshot of our 2024 performance and a preview of what is to come as we work together to deliver on our strategic expanded priorities and position our business for a sustainable future.
Thank you for your continued trust and support.
Mark Lashier Chairman and CEO
Our Approach and Progress
A strategic approach to sustainability and people
James Lake Gas Plant
GOLDSMITH, TX
Introduction
At Phillips 66, operating safely, reliably and with respect for the environment and our communities is at the heart of our approach to sustainability.
We are committed to serving our stakeholders with the highest standards of responsibility, ethics and integrity. We are dedicated to fostering a culture that encourages all our people to thrive. We are responsive to and regularly engage with our stakeholders.
Our policies and practices support our vision to be the leading integrated downstream energy provider. It is how we deliver on our mission of providing energy and improving lives while living our values of safety, honor and commitment.
Our board is responsible for diligently overseeing our sustainability and people management, integrating them into the responsibilities of relevant board committees. Our management aligns our sustainability and people initiatives with our company strategy, reinforcing our commitment to integrated, purpose-driven performance.
Our success begins and ends with our people, whose talents, ideas and determination are a competitive advantage. Investing in our people enables them to continuously innovate and maximize performance.
Sustainability at Phillips 66
Defining Sustainability
We believe that sustainability is a journey of continuous improvement, adaptation and resilience. It is based on environmental stewardship, social responsibility, governance, financial performance and operating excellence. Sustainability shapes how we execute and deliver our strategy, enabling us to implement our mission of providing energy and improving lives while driving financial value.
Our success begins and ends with our people, whose talents, ideas and determination are a competitive advantage.
Sustainability in Action
• Enhancing our safety culture through ongoing health, safety and environmental risk identification, prioritization and controls.
• Supporting an inclusive culture and creating a workforce that is ready for the future.
• Delivering the energy needs of today and tomorrow, including lower-carbon alternatives.
• Supporting our communities through social impact initiatives.
• Engaging with and responding to our stakeholders’ feedback.
Responding to Our Stakeholders
Our stakeholders include our people, contractors, shareholders, customers, suppliers, local communities, policymakers and energy users. Our processes are designed to identify and address key issues that enable them to assess our sustainability performance.
In 2024, the top sustainability issues of interest based on stakeholder engagements were:
Lower-carbon investments and initiatives
GHG emissions and targets
Biodiversity and natural capital management
Community engagement and social impact
Supply chain due diligence
“We are committed to driving our business forward while creating lasting, meaningful impact. By integrating sustainable practices into our operations, we not only enhance our brand reputation and foster innovation but also proactively manage potential risks. Our approach strengthens our resilience and profitability while enabling us to invest in our people and communities.
Vanessa Allen Sutherland Executive Vice President Government Affairs, General Counsel and Corporate Secretary
Ferndale Refinery FERNDALE, WA
Climate and lower-carbon investments and initiatives
EXPANDED METHANE MANAGEMENT DISCLOSURES
reduction in Scope 1 & 2 emissions intensity from 2019 levels 15%*
reduction in Scope 3 emissions intensity from 2019 levels 8%*
COMMISSIONED
30.2-MW SOLAR FACILITY TO POWER RODEO RENEWABLE ENERGY COMPLEX UPDATED CLIMATE LOBBYING ASSESSMENT PRODUCED 477 MILLION GALLONS OF RENEWABLE FUELS
Stakeholder engagement and social impact
contributed to education equity, safety and well-being, social advancement and environmental projects
$30 million of employee volunteer efforts dedicated to connecting and improving our communities
Employer of Choice Awards
Earned external employer recognition awards for workplace inclusion and hiring practices
116,000 hours
Learning and Development
Continued to support employee professional growth through comprehensive learning programs
Safety and environment
reduction in agency reportable events from 2023 22%* 13%*
reduction in spill volume from 2023
*See the Performance Data Tables
SAFETY AWARDS
earned industry-recognized safety awards across several operating facilities
Matched record safety rate
OUR BUSINESS AND PURPOSE
What We Do
We make products that help make modern life possible. In addition to conventional and lower-carbon transportation fuels, we produce specialty products to support the manufacture of medical devices, pharmaceuticals, electronics, vehicles, batteries, agricultural products, recycled steel and much more.
Our people, financial strength, operational scale, asset diversity and commercial acumen enable us to meet the world’s growing energy needs.
Where We Are Going
Our integrated portfolio positions us to deliver value through economic cycles. We strive to increase the
efficiency of our operations and reduce costs by promoting innovation and leveraging digital capabilities.
By putting our energy in action, we work for the greater good, cultivate an environment of trust, seek different perspectives and pursue excellence.
We are dedicated to developing our people, and we never compromise on protecting them. We go with honor, treating everyone with respect and being accountable. We deliver with commitment. We push our performance and draw inspiration from each other to fuel a future of progress.
We see change as a chance to grow stronger together. Taking on challenges is part of who we are. We want everyone to have the right resources to succeed and an environment where they belong.
Leading Integrated Downstream Energy Provider
High-performing organization delivering value creation through economic cycles:
World-Class Operations
Significant EBITDA and ROCE Growth From Disciplined Capital Investment
Financial Strength and Compelling Return of Capital
MIDSTREAM
Integrated crude oil and natural gas liquids wellhead-to-market value chains
• 70,000+ miles of pipeline systems
• 889,000 BPD fractionation capacity
• 260,000 BPD LPG export capacity
CHEMICALS
Chemicals and polymers the world needs
• 95% advantaged feedstock portfolio
• Proprietary technology and global marketing network
REFINING
Geographically diversified and integrated
• 9 refineries in the United States
• 2 refineries in Europe
• 1.8 million BPD of crude capacity
MARKETING & SPECIALITIES
Phillips 66®, Conoco®, 76®, and JET® branded fuels
• ~7,450 sites in the U.S. and ~1,360 internationally
• Leading lubricants manufacturer in the United States
RENEWABLE FUELS
World-scale producer of renewable fuels
• ~50,000 BPD renewable feedstock processing
• 20,000 BPD* blended SAF capability
* Based on 50/50 blend of renewable and conventional jet
fractionation capacity, 350 miles of purity distributions and approximately 885 miles of NGL pipeline.
Delivering on Our Commitments
At our Investor Day in November 2022, we announced six strategic priorities to drive sustainable value creation for our shareholders and enhanced several of our strategic priority targets in 2023. In 2024, we met or exceeded almost all of our strategic priority goals:
Deliver Shareholder Returns
Improve Refining Performance
Capture Value From Wellhead to Market
Execute Business Transformation
Maintain Financial Strength and Flexibility
Drive Disciplined Growth and Returns
• Achieved $13.6 billion shareholder distributions since July 2022.
• Completed DCP integration and captured $500 million of run-rate synergies.
• Demonstrated adjusted EBITDA uplift from DCP transactions, including synergies.
• Business transformation run-rate savings of $1.5 billion.
• $1.2 billion run-rate cost reductions.
• $0.3 billion sustaining capital efficiencies.
• Executed $3.5 billion of noncore asset dispositions, as of January 2025.
• 2024 capital expenditures1 of $1.9 billion.
• Full conversion of Rodeo Complex.
1. Excludes acquisitions of $625 million and purchases of government obligations of $1.1 billion.
Looking Ahead: Advancing Our Strategic Priorities
As we move forward, our focus remains on achieving excellence and delivering value. Our 2027 strategic priorities are still centered on executing world-class operations, growing shareholder returns, delivering disciplined growth and maintaining financial strength and flexibility.
Ponca City Refinery PONCA CITY, OK
LOWER-CARBON INVESTMENTS
At Phillips 66, we believe all forms of energy are essential to meet future consumer demand, including renewables and emerging energies. We pursue returns-focused opportunities that support the decarbonization of our operations, increase the resilience of our assets and provide energy consumers with more choices.
We strategically pursue opportunities with the right:
• Returns consistent with our disciplined approach to capital.
• Technologies that can be delivered at scale.
• Regulatory environments that support lower-carbon projects.
• Partners and capital structures that broaden and de-risk opportunities.
• Timing to maximize shareholder value.
Expanding Renewable Fuels Production
We produce renewable fuels, including renewable diesel and sustainable aviation fuel (SAF), with lower life-cycle GHG emissions than conventional fuels.
In 2024, we completed the conversion of our San Francisco Refinery in Rodeo, California, into the Rodeo Renewable Energy Complex (Rodeo Complex). The Rodeo Complex achieved its full processing capacity of 50,000 barrels per day (800 million gallons per year) of renewable feedstocks and began producing SAF. To support the expanded commercial-scale production, we completed the conversion of approximately 600 76® branded California sites to sell renewable diesel.
Our Rodeo Complex is the second-largest producer of SAF in the U.S., and we supply SAF to several airlines. Our Humber Refinery is the first commercial-scale producer of SAF in the United Kingdom. Through co-processing, we turn used cooking oil (UCO) into a lower-carbon alternative to conventional jet fuel, which can be supplied to U.K. airports using existing pipelines.
We source renewable feedstocks from around the globe. These feedstocks include UCO, vegetable oils, low-carbon intensity waste oils and byproducts. Each of our facilities completes a detailed permitting process before processing renewable feedstocks. Our ongoing compliance efforts include International Sustainability & Carbon Certification (ISCC). The ISCC’s mission is to protect forests, high-carbon stock lands and biodiversity, enable waste utilization and increase traceability.
Using Hydrogen in Our Operations
We pursue returns-focused opportunities that support the decarbonization of our operations, increase the resilience of our assets and provide energy consumers with more choices.
We are exploring ways to increase lower-carbon hydrogen use. One example is a project to produce and supply green hydrogen made using renewable energy to our Ferndale Refinery in Washington state and to reduce the carbon intensity of our fuels at that site.
The Humber Refinery is exploring low-carbon hydrogen refueling to transition its heaters from refinery fuel gas to hydrogen. A report completed in 2024 demonstrated it is technically feasible to replace up to 100% of refinery fuel gas with hydrogen through cost-effective retrofits while reducing GHG emissions.
Rodeo Renewable Energy Complex RODEO, CA
Advancing Carbon Capture and Storage (CCS)
We are involved in projects that support the deployment of CCS technology. We are evaluating CCS projects in our Natural Gas Gathering and Processing (G&P) assets and at the Humber Refinery in the United Kingdom.
The Humber Refinery is part of Humber Zero, a local project that aims to capture up to 3.8 million metric tons of carbon dioxide (CO2) annually. As part of this, carbon capture technology is expected to be installed at the Humber Refinery to support the reduction in operational emissions. This will also help to lower the carbon intensity of our products for the electric vehicle (EV) supply chain and transportation sector.
Supporting Lower-Carbon Steel Production and EV Adoption
Specialty coke is a critical material used to make synthetic graphite anodes for lithium-ion batteries that power EVs and electronics like smartphones. Specialty coke is also used to make graphite electrodes to melt scrap steel or other iron material to produce recycled steel. According to the American Iron and Steel Institute, electric arc furnaces generate lower GHG emissions than blast furnace steel production.
With decades of research in advancing our specialty coke, we are one of the industry’s leading suppliers. We leverage proprietary processes and on-site testing laboratories to support consistency in product quality.
The Humber Refinery in the U.K. and the Lake Charles Manufacturing Complex in Louisiana produce specialty coke. We are geographically positioned to supply specialty coke on both sides of the Atlantic.
High-Speed EV Charging
In the United States, our first branded chargers were installed at our flagship fuel station near our Houston headquarters in 2022. Our first 76® branded chargers were commissioned in Washington state in late 2023, followed by the first Conoco® branded chargers in Colorado in early 2024. By the end of 2024, we had 20 active sites. We will have 30 charging sites commissioned by 2026.
In February 2025, we commissioned our first Electrify America charging station in collaboration with Electrify America Commercial. The two companies will deliver up to 20 sites. As of June 2025, we have been awarded $8 million in U.S. EV charging grants aligned with state and federal EV infrastructure goals.
We support the decarbonization of the U.K. car fleet through our JET® Charge ultra-rapid charging service, which debuted at our JET® Refinery service station in Immingham in 2023 and is now at seven locations throughout the United Kingdom.
76® EV charger BELLINGHAM, WA
Increasing Renewable Power
Our renewable power solutions enable decarbonization of key assets, reduce carbon intensity of renewable fuels and reduce operating costs.
We have teamed up with a subsidiary of NextEra Energy Resources LLC to power our Rodeo Complex with a 30.2-megawatt solar facility. The facility, which is designed to generate approximately 60,000 MWh/year of electricity, will reduce the complex’s grid power demand by 50% and is expected to avoid approximately 33,000 metric tons of carbon dioxide emissions a year.* The facility became fully operational in 2025.
Other renewable power projects are under development at our Wood River Refinery, Hartford Terminal and Hartford Lubricants Plant in Illinois, where we are also participating in multiple Illinois state renewable power programs. We continuously evaluate renewable projects at our Refining and Midstream assets, nationwide.
*Calculation is based on the EPA’s AVoided Emissions and geneRation Tool (AVERT)
The solar facility is expected to avoid approximately 33,000 metric tons of carbon dioxide emissions a year.
Solar facility at Rodeo Renewable Energy Complex RODEO, CA
Health, Safety and Environment
We aspire to lead our industry in health, safety and environmental performance.
Lake Charles Refinery WESTLAKE, LA
STARTING WITH SAFETY
Health, Safety and Environmental (HSE) excellence is foundational to who we are. Our people are our most valuable asset, and keeping them safe starts with all of us. Our HSE strategy centers on eliminating injuries from serious incidents, keeping the process in containment and continuously reducing our environmental footprint.
We have consistently built a strong foundation for safety performance, reflecting our commitment to continuous improvement and high standards. In 2024, our combined total recordable rate (TRR) of 0.12 matched our record safety rate, and we achieved a 38% reduction in injuries from serious incidents from 2023 to 2024.
Integrating Human Factors
We continue to enhance our safety performance by focusing on the effectiveness of safeguards rather than just outcomes. By leveraging Human Performance (HP) principles, we improve the resilience of our systems, processes and people, thereby safeguarding our workforce, communities and environment. HP involves understanding risks and anticipating mistakes, with effective safeguards in place.
Proactively Managing Safety
At the heart of our operations lies our commitment to safety, reliability and environmental performance. We set rigorous standards and expectations upheld by our comprehensive HSE Management System, which systematically identifies, assesses and manages risks. Each manufacturing site is supported by occupational health and safety professionals who understand the potential sources of exposure, the process for evaluating risk and the methods of protecting our employees and contractors.
“By fostering a strong safety culture and working collaboratively, we protect our people, support our communities, and minimize environmental impact. Our shared commitment leads to a safer and more sustainable future.”
Karen
Albrecht
General
Manager, Global HSE and Compliance
Our learning culture drives continuous improvement and helps prevent serious incidents. The Good Catch program recognizes and celebrates employees who proactively identify and address potential safety concerns. Additionally, the annual distribution of safety commitment cards fosters meaningful conversations between employees and supervisors about the company’s life-saving rules and their personal dedication to maintaining a safe work environment. People make mistakes. Therefore, safeguards are needed.
Working collaboratively enables success.
How we respond matters.
Learning drives improvement.
Training for HSE team at headquarters HOUSTON, TX
We empower our employees and contractors to “start when sure” and “stop when unsure,” ensuring there are no repercussions for exercising their stop-work obligation. By proactively planning work to anticipate errors and integrating safeguards into our systems and processes, our teams collaborate to enhance overall safety and reliability.
Looking ahead to 2025, we will shift our focus to preventing injuries from serious incidents (ISI), moving beyond TRR to distinguish higher-risk safety incidents from lower-risk ones. ISI measures recordable injuries from serious incidents, allowing us to concentrate on understanding where safeguards break down in our higher-risk work. This emphasis on ISIs will enable us to learn, adapt and continuously improve our safety practices.
Enhancing Contractor Safety
Our contractors are critical to our operations. We collaborate with contract companies to enhance workers’ technical skills and safety leadership capability, which is essential to reducing the likelihood of high-consequence incidents. In 2024, over 60 leaders from 30 contract companies gathered at our Annual Contractor Safety Forum to share safety best practices and effective strategies for strengthening safety leadership.
Elevating Workforce Capability and Safety Engagement
We recognize the impact strong safety leadership skills have on safe and reliable operations. That is why, in collaboration with the Health and Safety Council, we have invested in a safety leadership program for our frontline supervisors, equipping them with the tools to effectively engage with our employees and contractors on field jobs. Additionally, we are adjusting our work processes to increase field time for our frontline supervisors.
Our safety training for all employees helps maintain consistent, safe work practices and safeguards. We periodically host hands-on safety day training at our facilities to share techniques, reinforce policy requirements and cover focus areas for improvement.
Safety Awards and Recognitions
AMERICAN FUEL & PETROCHEMICAL MANUFACTURERS (AFPM) RECOGNITIONS:
Elite Gold Award: Rodeo Renewable Energy Complex
Elite Gold Award: Ferndale Refinery
Elite Silver Award: Billings Refinery
Elite Silver Award: Los Angeles Refinery
AMERICAN PETROLEUM INSTITUTE (API) DISTINGUISHED PIPELINE SAFETY AWARD
SAFETY
RECOGNITION
BY FOUR MAJOR RAILROADS
for achieving zero Non-Accidental Releases
Canadian National Railway
CSX Transportation
Union Pacific Railroad
Norfolk Southern Railway
Each of our sites holds regular safety committee meetings. In addition to improving hazard awareness, these meetings enable knowledge sharing from experts such as industrial hygienists, safety specialists and process safety representatives. We also frequently engage our field personnel in safety “toolbox” meetings and execute job safety analyses for each field job.
Protecting the Work Environment
Our Industrial Hygiene and Occupational Medicine Standard provides comprehensive guidance for programs across our operated locations. This standard applies to any site where employees work with chemicals or physical stressors that could affect their health. It underscores our commitment to maintaining a safe and healthy work environment for all employees.
Key components include:
• Procedures for exposure assessments and sampling plans.
• Change-management processes that include compliance with the Toxic Substance Control Act and international chemical management requirements.
• Procedures for enrolling employees in occupational medical surveillance programs.
• Management of exposure monitoring data and safety data sheets using electronic software systems.
• Guidelines for occupational exposure limits to protect workers from adverse health effects.
• Occupational health improvement processes to conduct periodic assessments that continuously improve occupational health performance.
• Guidelines to establish the Industrial Hygiene Steering team and Industrial Hygiene programs teams.
• Hearing conservation requirements and workplace exposure control plans for specific chemicals and agents.
In instances where regulatory requirements exist, the more stringent of the regulation or the Phillips 66 standard applies.
OSHA Voluntary Protection Program
We have 10 Refining and Midstream facilities with Occupational Safety and Health Administration (OSHA) Voluntary Protection Program Star recognition. This is OSHA’s highest workplace honor. To maintain this status, each site must complete annual self-evaluations and undergo an OSHA site inspection every three-to-five years.
Advancing a Reliability Centered Culture
At Phillips 66, we believe that reliable operations are fundamental to achieving safe operations, and we emphasize that everyone is responsible for reliability. Many of our asset integrity, process safety and environmental standards often surpass industry requirements.
Design It Right.
Operate It Right.
Continuously Improve.
Maintain It Right.
Eliminating Process Safety Events
Enhanced reliability and process safety are intrinsically linked. Process safety events (PSEs) are unplanned releases of hazardous material from primary containment. At Phillips 66, we closely monitor and measure our performance in this area to maintain the highest standards of safety.
To eliminate PSEs, we apply best practices in design, operations and maintenance. We also perform process hazard analyses and use change-management procedures to mitigate potential risks. By investigating PSEs to uncover their root causes, we can take proactive measures to prevent recurrence and continuously improve our reliability and safety performance.
Maintaining Asset and Pipeline Integrity
Asset and pipeline integrity programs enhance reliability through quality assurance and quality control, defined inspection and maintenance intervals, and established company standards.
In Refining, our Advanced Integrated Mechanical Integrity program standardizes, validates and digitizes our equipment design, process information and inspection data. This knowledge enables our mechanical integrity teams to perform the right inspections at the right time on the highest-risk equipment.
In Midstream, our pipeline integrity programs focus on maintaining safe and reliable operations for our customers. We utilize cutting-edge inline inspection technologies combined with advanced analytics at several sites to integrate data and identify potential threats early. In 2025, we are further enhancing our integrity programs for gas gathering pipelines by expanding the use of inline inspection and implementing proactive corrosion prevention initiatives. We will continue to prioritize the replacement of higherrisk pipeline segments. Additionally, we are leading industrywide improvements through research at the Pipeline Research Council International, piloting innovative technologies and actively sharing our experience with industry peers.
Performing Audits
Our facilities are subject to rigorous internal, industry and external audits and inspections, and our operations are managed to support compliance and asset integrity. Audit results are documented, and findings are communicated to management, with corrective actions monitored by business unit management through a compliance verification process. Additionally, these findings and corrective actions are shared across facilities to promote continuous improvement and learning.
Monitoring Product Compliance
Our facilities follow Phillips 66 environmental and quality management systems, and many are certified to International Organization for Standardization (ISO) measures. These certifications and systems demonstrate our ability to consistently provide products and services that meet customer and regulatory standards.
Five of our Lubricants facilities have certification to the ISO 14001:2015 Environmental Management Systems Standard and the ISO 9001:2015/IATF 16949:2016 Quality Management Systems Standard. Lubricants Research and Development is accredited to the ISO/IEC 17025 standard for testing and calibration laboratories.
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 certified to ISO 14001:2015. Bayway Refinery’s polypropylene business in Linden, New Jersey, is certified to ISO 9001:2015 for the design and manufacturing of plastic pellets.
In April 2024, our polypropylene business received Underwriters Laboratories (UL) certification for six of our polypropylene grades for energy savings.
Maintaining Emergency Response Capability
Phillips 66 has committed resources to prepare and implement emergency response plans so that the necessary personnel and equipment are available to respond to emergency scenarios. We routinely prepare, train and drill for emergencies in collaboration with federal, state and local agencies. Refinery fire brigades undertake regular hands-on training for more than 800 brigade members. Emergency response plans include working with local fire and rescue departments, police and community members, and are reviewed annually.
Local response teams are supported by secondary teams, which are overseen and staffed at a corporate level. Regular training and drills keep team members skilled and qualified. Indigenous people and tribal representatives participate in drills and training sessions where our operations are near Native American communities. We also support community safety and preparedness programs and provide resources and training to local police, fire and emergency management personnel.
Bayway Refinery LINDEN, NJ
OUR ENVIRONMENTAL PERFORMANCE
We strive to reduce our environmental footprint by being more efficient while reducing waste and natural resource use. We pursue returns-focused investments in emissions reductions, nature conservation and biodiversity.
Working Toward GHG Emissions Intensity Reduction Targets
We have set returns-based companywide targets to lower Scope 1, 2 and 3 emissions intensity. Our intensity targets normalize our processed inputs, which include crude oil, natural gas, natural gas liquids and renewable feedstocks. To evaluate impacts to our targets, we integrate GHG intensity metrics into our project approval process alongside financial metrics. We continuously explore technological innovations, partnerships and best practices to further reduce GHG emissions, including methane.
GHG Emission Reduction Targets and Progress
MANUFACTURING EMISSIONS INTENSITY
PRODUCT EMISSIONS INTENSITY
Scope 1 and 2 Metric Tons of CO2e/MBOE 2019 Baseline
Scope 3 Metric Tons of CO2e/MBOE
2024 Progress 8% Reduction
2030 Target 15% Reduction
Manufacturing-related emissions
Scope 1 and 2 from operated assets
Emissions Intensity Reduction Road Map
Near-Term
Improve energy efficiency of operations
• Equipment optimization.
• Electrification.
• Waste-heat recovery.
Increase renewable power use in operations
• Behind-the-meter projects.
• Purchase agreements.
Longer-Term Capture CO₂ from operations
Products manufactured and sold
Scope 3 from operated assets
Find out more about our emissions reduction targets.
Reduce methane emissions
• Natural gas equipment conversion.
• Leak detection and repair.
• Equipment maintenance.
Grow production of lower-emissions intensity products
• Renewable fuels.
• Natural gas liquids.
Use lower-carbon intensity hydrogen
Managing Methane Emissions
Building on Our Four-Part Approach
Effectively managing methane emissions may offer a near-term opportunity for society to positively impact Earth’s climate. With the integration of G&P assets, methane management has become more relevant to our operations, accounting for approximately 3% of our Scope 1 and 2 GHG emissions. To manage methane, we adopted a four-part approach that includes (i) integrating people and data systems, (ii) implementing best operating practices, (iii) utilizing technology, and (iv) leveraging academic and industry partnerships. In 2025, we continue to build upon this approach, further enhancing our efforts to manage methane in our operations effectively.
Integrating People and Data Systems
Aligned with our goal to efficiently identify and respond to methane events, we developed an innovative application that tracks abnormal methane emissions in G&P activities from detection through resolution. The Methane Event Management System standardizes and streamlines pipeline leak data management from multiple sources, including manual inputs, satellite information and aerial surveys.
Aerial surveys monitor 100% of our operated G&P lines, covering approximately 46,000 miles of pipeline, with measurements conducted twice yearly. Comparing the aerial surveys from the second half of 2024 to the same period in 2023, we observed a 19% reduction in the total emissions, assuming the events continued for the same length of time*. We are evaluating and utilizing emerging drone and satellite-based technologies to further improve event detection. Detecting and stopping leaks is a benefit to the environment and may result in economic benefits.
*Includes detections greater than 50 kg/hr
Leading Methane Management
The Midstream GHG Steering Committee, composed of members from the Midstream and Sustainability leadership teams, plays a vital role in identifying, prioritizing and guiding the company’s initiatives to reduce methane emissions and oversee our four-part approach.
The committee coordinates efforts across various teams to facilitate alignment with greenhouse gas emissions reduction targets and regulatory compliance. Supported by our Methane Management Working Group, the steering committee focused on improving the connectivity of methane detection information, systems and the personnel responsible for response in 2024.
The company’s initiatives to reduce methane emissions are integrated into our business planning processes and reviewed by the Executive Sustainability Steering Committee.
Implementing Best Operating Practices
Recent regulatory changes aim to enhance methane mitigation and reporting. To address these new methane reduction emissions guidelines from the U.S. Environmental Protection Agency (EPA), we have formed a dedicated team to plan their implementation. Additionally, our reporting teams are preparing to comply with amendments to subpart C and subpart W of the EPA’s Greenhouse Gas Reporting Program (GHGRP).
The inclusion of new emissions sources, updated calculation methodologies and revised emissions factors aligns with the EPA’s objective to modify the GHGRP to more accurately reflect total U.S. methane emissions. Alignment is expected to significantly increase our methane reported under the GHGRP in the next cycle; however, increased reported emissions do not reflect a negative change in our operating performance.
Methane Event Management System Gas Mapping LIDAR aerial plane view
For the 2024 GHGRP cycle, G&P reported 41,137 metric tons of methane. This includes 6,847 metric tons of methane emissions excluded in the GHGRP but accounted for in our company Scope 1 and 2 GHG emissions to represent methane more holistically. These additional methane emissions come from sources such as heaters below GHGRP reporting thresholds, amine treaters, nitrogen removal units and release events.
We continuously look for opportunities to optimize our systems, including consolidation of assets, decommissioning equipment and reducing emissions points. For new installations, we are evaluating designs that incorporate low-emissions best practices such as designing with non-natural gas-driven controls, using low-emission valves, implementing new flare technologies and routing emission sources into closed systems.
We operate a centralized, round-the-clock collaboration center dedicated to gas gathering systems. Our team enhances operational reliability by identifying abnormal conditions and leveraging technology to minimize disruptions. We actively aim to reduce emissions by implementing best practices and procedures, such as planning and scheduling processes to reduce atmospheric blowdowns and using advanced technology to improve reporting accuracy and visibility across the organization. Additionally, we accelerate knowledge sharing between locations through a 12-month retrospective analysis, which helps identify thematic events and drive targeted improvements.
Utilizing Technology
Satellite and ground-based methane detection and quantification are continuously advancing. Since 2023, we have trialed a technology that monitors tanks for acoustic changes indicative of sample hatch leaks that might result in emissions. This program continued to expand in 2024, with 100 sensors deployed across over 50 sites in the Permian Basin. Additionally, we are piloting fence-line monitoring systems to provide real-time, consistent monitoring of facility assets. To further enhance our monitoring capabilities, we are leveraging satellitebased detection to supplement fixed-wing aerial surveys.
Leveraging Industry and Academia
We believe that industrial and academic collaborations have the potential to improve measurement and reporting, as well as accelerate methane reduction efforts. As a member of The Environmental Partnership, a forum for industry participants to share information and analyze best practices, we provide data on our leak program, gas pneumatics and compressors. We also participate in the annual meetings and conferences to collaborate on industry developments.
Universities and academic institutions can play a crucial role in aggregating industry to improve emissions factors and reconcile emissions inventories or ground-based measurements with quantification from aerial measurements across a basin. The basinwide view provides advantages for a better scientific understanding of emissions as compared with a company-by-company methane view. This can enable full inclusion of sources and accuracy in emissions factors in regulatory decisions to drive improved reductions.
In 2024, we hosted the University of Wyoming’s onsite emissions measurement campaign in Colorado, supporting the SABER project funded by the Department of Energy and led by Colorado State University. This project focuses on reconciling top-down and bottom-up emissions data in the Denver-Julesburg Basin in Colorado and the Upper Green River Basin in western Wyoming.
Additionally, we submitted letters of support for successful grant applications awarded to The University of Texas at Austin and Colorado State University as part of the Department of Energy and Environmental Protection Agency Methane Emissions Reduction Program. We plan to contribute data and industrial expertise to these projects.
Goldsmith Gas Plant GOLDSMITH, TX
Reducing Air Emissions
Maximizing operational efficiency, following maintenance best practices and retiring or replacing legacy equipment are some of the ways we continue to make progress on reducing air emissions. Air emissions include nitrogen and sulfur oxides, particulate matter and volatile organic compounds. Cross-site learnings for improved winterization efforts also aid efforts to reduce air emissions by reducing the risk of air emission events caused by extreme weather. Since 2020, we have reduced our air emissions by approximately 16% across our Refining assets. From 2023 to 2024, we reduced our air emissions by approximately 9%.
Technical Networks at Phillips 66
The breadth of Phillips 66 operations provides us with valuable opportunities to learn from one another to improve our environmental practices. We have established various networks focused on topics like air quality, water processing, waste management and energy efficiency. These networks meet regularly to share lessons learned and opportunities for improvement.
Managing Water, Waste and Recycling
We seek to manage water responsibly. Our refineries, Beaumont Terminal and Rodeo Complex have on-site wastewater treatment systems and oil recovery units. We consider local water demand in prioritizing projects to improve efficiency and reduce our environmental footprint. We operate 11 biological treatment plants and 13 pretreatment facilities in North America and the United Kingdom. We also meet or exceed environmental performance standards from the National Pollutant Discharge Elimination System and other industrial pretreatment permits.
Tanks at our refineries and terminals require periodic cleanout. We strive to conserve water during this process. We recycle or dispose of residual products in compliance with strict environmental laws. Our Remediation Management Team manages the treatment of impacted groundwater at sites undergoing remediation. In 2024, 93% of treated water was recycled for reuse at our facilities, reducing our freshwater requirements.
Reducing Environmental Impact Through Energy Efficiency
Advanced Process Control (APC) technology optimizes process operations by allowing users to set goals such as quality targets, feed maximization and energy minimization. These goals are optimized in real-time within operating unit constraints. Most of our APC applications focus on minimizing energy usage, aiming to use the least amount of fuel gas, steam, electricity and other energy sources while meeting product quality specifications.
Recent examples of how APC technology has benefited us:
• Improved temperature control, lowered fuel gas consumption and reduced environmental emissions from hydrogen production at a refinery.
• Lowered steam usage while maintaining high-value product yields at our refineries.
• Increased production of octane barrels, a high-margin gasoline blendstock, without increasing fuel gas usage.
APC technology allows us to make a positive environmental impact with minimal capital costs by utilizing in-house resources within a short time frame. Our extensive use of APC has led to GHG emissions reductions, cost reductions and margin improvements.
2.2 million+
gallons of waste-derived fuel for manufacturing processes generated from our tank cleanout methods in 2024
650,000+
gallons of water conserved through our tank cleanout methods in 2024
2 billion+
gallons of water collected and treated through Phillips 66 remediation systems for reuse at operating facilities in 2024
Supporting Biodiversity and Conservation
Our environmental stewardship extends beyond our regulatory requirements. We connect our business to conservation and managing natural capital in and around the communities we serve. These include forests, oceans and the freshwater biodiversity of these ecosystems.
Nationally, we continue to be a dedicated partner to Ducks Unlimited. During our partnership, we have supported 35 projects with $5 million in funding, helping the nonprofit to improve more than 36,000 acres for waterfowl and other wildlife. In 2024, we donated $650,000 for wetlands conservation projects. Furthermore, last year, Phillips 66 was the title sponsor of the Coastal Conservation Association’s Science and Conservation Program. We support the Texas Parks & Wildlife Department and celebrated the release of the one billionth fish into Texas waters with them in 2024.
Locally, we support our immediate communities. Last year, our Wood River Refinery collaborated with Living Lands & Waters and donated about 5,000 trees to the community. We helped plant more trees with Living Lands & Waters
Pollinator Spotlight
along the Mississippi River to prevent erosion, while local schoolchildren planted some of the trees in a nearby park. Since 2021, our Wood River Facility has supported the Edwardsville Children’s Museum Micro Forest with tree planting and annual maintenance.
Nature-related disclosure expectations continue to develop. We consider the guidance and recommendations developed by the Taskforce on Nature-Related Financial Disclosures (TNFD), which are designed to enable businesses to “integrate nature into decision making.” New construction is a small part of our business, but we consider nature in the project evaluation and permitting process. We view the management of natural capital and biodiversity risks as essential. We work with many agencies, including the EPA, the U.S. Army Corps of Engineers, the U.S. Fish and Wildlife Service and state and local regulatory bodies. We use existing pipeline corridors, where feasible, and construction techniques that minimize the impact on the environment, local communities, wildlife and natural resources. As we increase our volumes of renewable feedstocks in our Phillips 66 operations, we seek to adhere to ISCC standards to protect the land and biodiversity.
In 2024, we prioritized pollinator conservation to enhance the natural environment within our business operations and communities.
Our Midstream operations participate in the Monarch Butterfly Candidate Conservation Agreement with Assurances, contributing nearly 6,000 acres of adopted acreage. As part of our efforts, we removed brush and designated suitable habitats to protect spaces conducive to butterflies. We exceeded the program’s monitoring requirements, with 29 out of 30 survey plots achieving more than 10% floral availability for monarchs.
In Texas, we were a supporting sponsor to the Texas Parks & Wildlife Foundation’s launch of the Pollinators and Prairies program to conserve pollinators and grasslands through research, outreach and on-theground prairie restoration. One research project uses trained dogs to locate difficult-to-find American bumblebee and cuckoo nests to understand habitat requirements to inform conservation planning.
Local pollinator support for our communities located near Lake Charles facilities included funding for The Community Foundation of Southwest Louisiana to develop pollinator gardens, which will break ground in 2025. The Edwardsville Children’s Museum Micro Forest near our Wood River Refinery includes a pollinator patch that was added to the outdoor Discovery Garden through support from Phillips 66.
Pollinators and Prairies program AUSTIN, TX
Communities People and
We foster an environment where people can belong, develop and thrive.
Volunteer event at Hermann Park
HOUSTON, TX
OUR PEOPLE AND CULTURE DRIVE PERFORMANCE
At Phillips 66, we believe that an unparalleled employee experience will not only energize our people and unlock their potential but will help us drive continuous improvement and exceptional business performance.
We are investing in a future-ready workforce by developing the skills, fostering the mindset and providing the opportunities to lead change and drive impact.
“
Excellence is realized through the power of our people and our culture. We are anchored by our values — Safety. Honor. Commitment. — which positions us to take on challenges, innovate and deliver the energy we all need.”
Andrez Carberry Senior Vice President and Chief Human Resources Officer
OUR ENERGY IN ACTION
Living our values earns us the confidence of our business partners, communities and co-workers.
Trusting each other makes us more productive and agile.
Being inclusive enables us to innovate and thrive.
Driving continuous improvement ensures we deliver extraordinary performance.
Living Our Energy In Action
Our Energy In Action (OEIA) is a set of behavioral expectations for all our people. It facilitates alignment on how we collectively achieve our strategic priorities, influences how we make decisions and helps us focus on what matters to compete and win.
In 2024, we updated our values and OEIA behaviors to better align with our mission, vision and strategy. This refresh reflects our continued commitment to delivering stronger results and creating a culture where everyone is empowered to meaningfully contribute, grow and make an impact. Our OEIA behaviors and values guide how we work together, how we make decisions and how we can power the world with purpose.
Fostering Belonging
Living the behaviors of OEIA also helps us foster an inclusive culture where every employee can feel like they belong. At Phillips 66, we promote a workplace where diverse talents innovate, create value and deliver exceptional results. Our Executive Inclusion, Diversity and Culture Council supports our goal of fostering an inclusive culture. This approach unlocks innovation and performance, attracts and retains top talent, and strengthens our ability to compete and win in a global market.
Good Energy Month event BARTLESVILLE, OK
Employee Resource Groups
Our 10 Employee Resource Groups (ERGs), open to all employees, continue to be a powerful force for connection, growth and impact. In 2024, ERG membership expanded across our 70+ chapters: 40% of employees were part of an ERG, up from 35% the year prior. This growth of nearly 700 employees reflects the desire for community and belonging in our workplace and demonstrates our progress in meeting those needs.
Through professional and personal development, our ERGs help employees thrive while strengthening the fabric of our organization. They foster collaboration, raise awareness and create opportunities for meaningful connections.
40%
of employees belong to an ERG
Celebrating Our Engineers
In 2024, we celebrated our nearly 2,000 engineers across 34 disciplines during National Engineers Week. The theme of “fueling progress” highlighted the critical role that engineers play in our mission of providing energy and improving lives.
45%
of total engineers are in cross-functional or leadership roles
400+
universities and schools represented by our engineers
Hispanic Network Food Bank volunteer day LOS ANGELES, CA
Engineers Week activation at headquarters HOUSTON, TX
Nondiscrimination Practices
Phillips 66 is an equal opportunity employer and prohibits discrimination in violation of applicable law.
Military Veterans
We are consistently recognized for our military hiring, retention and development, including being named a ‘Best for Vets’ Employers by Military Times, and receiving a Gold Medallion Award from the Department of Labor’s HIRE Vets program. We also participate in the Hiring Our Heroes Corporate Fellowship program, connecting the veteran community with impactful employment opportunities.
9%
of our U.S.-based employees are currently or have previously served in the military
Employees With Disabilities
In our first year of participation, Phillips 66 received a top score of 100 on the Disability Equality Index, which is a partnership between Disability:IN and the American Association of People with Disabilities. This benchmark achievement recognizes Phillips 66 as a Best Place to Work for Employees with Disabilities.
U.S.-based employees self-identify as having a disability or a history or record of a disability 8%
Recognition as a Top Employer
Veterans Day event at
Top score of 100 on the Disability Equality Index
HIRE Vets Gold Medallion Award
Military Times ‘Best for Vets’ Employers
OUR APPROACH TO THE EMPLOYEE EXPERIENCE
Recruiting Top Talent
As a high-performing organization, we are committed to hiring individuals who are driven to explore what is possible, collaborate across our organization and achieve results. Each year, we welcome approximately 1,000 new employees, reflecting our ongoing growth and dedication to attract great talent.
We utilize a variety of strategies and digital recruiting tools to reach a broad network of qualified candidates, including those from universities and trade schools. These strategies enable us to efficiently capture valuable data and maintain a consistent, transparent hiring process that provides a positive experience for candidates.
Additionally, we continuously evaluate and refine our recruiting practices to ensure they align with our goal of identifying and selecting the best talent to help us compete and win.
Building Strong Leaders
At the heart of our learning strategy is a steadfast commitment to developing leaders who can drive growth, challenge conventional thinking and inspire their teams to succeed. In 2024, we enhanced our leadership development initiatives, recognizing that great leaders are the cornerstone of any thriving organization.
Through programs like Field Safety and Leadership Essentials, Crucial Conversations and Leading with Trust, we laid a foundation for leadership excellence across all levels. Our dedication to empowering our leaders resulted in impressive participation and engagement metrics.
90%
of our executives participated in our flagship G.O.L.D. (Grow. Optimize. Lead. Deliver.) Executive Leadership Program, equipping our senior leaders with the insights and tools needed to navigate complex challenges and lead with confidence
91%
of all leaders across the organization engaged in leadership development opportunities, further deepening our focus on fostering leadership at every level
This robust participation in leadership development reinforces our dedication to growth and excellence. Through continuous investment in our people, we are building a culture of strong, adaptable and accountable leaders who will drive Phillips 66 to greater success.
Empowering Employee Growth and Development
In 2024, we continued to invest meaningfully in employee growth by providing more than 616,000 total invested hours of on-the-job training across the company. We are embedding learning into our culture and making it more readily accessible. As part of this commitment, we launched our first-ever companywide Month of Learning initiative to showcase our learning and development portfolio. During the month, employees engaged and participated in a wide range of opportunities, further reinforcing our dedication to continuous growth. This initiative, along with our ongoing investment in development, reinforces learning as an integral part of our culture, empowering employees to enhance their skills and contribute even more effectively to our business goals.
616,000
total invested hours of on-the-job training across the company
Building and Evolving Managerial and Leadership Capabilities
By prioritizing leadership at every level, we ensure that our teams are not only capable of meeting today’s challenges but that we have the right skills to lead us into the future.
Measuring Employee Engagement
Our employee listening program, Employee Perspectives, helps us understand the experiences of our employees throughout the year and strengthens our ability to raise the bar on our performance. In 2023, we conducted an engagement survey that identified three focus areas for the company: future vision, career development and belonging and values. In 2024, we conducted 15 targeted focus groups and 40 interviews to gather employee sentiment on these three topics. This feedback was then incorporated into company initiatives. As a result, we have taken the following actions:
Future Vision
Enhanced clarity on the company’s vision of being the leading integrated downstream energy provider.
Career Development
Developed and communicated a new talent strategy with enhanced learning and development offerings.
Belonging and Values
Updated definitions of our company values, refreshed Our Energy In Action and developed a compelling employee value proposition to align with our evolving culture.
In April 2025, we launched our next engagement survey and will be able to measure our progress in each focus area.
Team meeting at headquarters HOUSTON, TX
Investing in Our People
Our Total Rewards program aligns with our vision and strategy. We make significant investments annually to attract, engage and retain our people. Our median employee received $171,593* in total compensation and benefits in 2024.
We benchmark our Total Rewards program annually to evaluate market alignment and competitiveness with our peers. We compensate all employees equitably regardless of race, gender or other personal characteristics.
Working With Unions and Work Councils
Our values align us with unions and work councils to achieve a high-performing organization and operational excellence as a core capability. We encourage open communication, strive to maintain collaborative working relationships and promote an inclusive culture for represented and non-represented employees across our company and within the industry. We respect the rights of our union-represented employees to bargain collectively under the National Labor Relations Act in the United States, and we honor country-specific laws and requirements for our international locations. We are committed to bargaining in good faith toward agreements that are fair and industry-competitive while driving transformation and exceptional business performance through our people.
Represented Workforce
of our U.S. workforce is union represented 31%
Compensation
COMPETITIVE
Benchmarked against our industry and the broader market
Reviewed annually
PERFORMANCEBASED
Annual Variable Cash Incentive Program (VCIP) for eligible employees
Restricted Stock Unit (RSU) Program for eligible employees
U.S. employees supporting our operating facilities that are union represented
3,700 employees represented by work councils in Austria and Germany in 2024
45
298 managed collective bargaining agreements are in effect across our workforce
EQUITABLE
Disparity reviews
Periodic pay equity reviews
Find out more about our Total Rewards.
*Additional information can be found in our definitive proxy statement, under the CEO Pay Ratio section.
ENGAGING OUR COMMUNITIES
We recognize the importance of engaging with our neighbors to understand the needs of our communities and their environment as they support our continued industrial progress. We value fair treatment and meaningful involvement of all people regardless of background or income and believe that this involvement will lead to more resilient communities and environments. Our internal strategy recognizes the interaction of many aspects of community engagement to create an overall strategy: Environmental and Community Resilience. This One Team, unified mindset has focused the efforts across stakeholders in the company to involve Business Leaders and Operations, Social Impact, Public Affairs, Procurement, Emerging Energy and Human Resources.
Environmental and Community Resilience Contributions Across Our Organization
Community
Operating Excellence
Permit Applications
Pipeline Engagement Recommended Practice Implementation
Emergency Response
ONE TEAM
Partnering for Future Workforce
Provide Access to Career Opportunities
Employee Resource Groups
Business Leaders and Operations
Operating safely and responsibly is our foremost company value and a fundamental expectation from our communities. Operational excellence is the primary way our business leaders and operations deliver for our communities. We also prepare for unexpected situations with strong emergency preparedness. Our leaders have a voice in their communities and serve in various roles from school boards to chambers of commerce. This involvement provides an additional avenue to share our talents and listen to how we can positively impact our neighbors, particularly around our Midstream and Refining assets.
In 2024, the industry reached a significant milestone in pipeline public engagement with the publication of the American Petroleum Institute Recommended Practice on Pipeline Public Engagement (RP 1185). Phillips 66 had the privilege of leading the development of RP 1185 through active participation in the development committee. This guideline provides guidance to hazardous liquids and gas transmission and gathering pipeline operators, interested parties in the public, governments and rights holders for effective engagement. Subsequently, Phillips 66 developed Midstream Public Engagement Program Guidelines to serve as a framework for implementing RP 1185 within our business.
Human Resources
To recruit talent, we partner with high schools, colleges, technical schools and community and professional organizations. We also offer intern programs and participate in career fairs and outreach events to grow candidate pipelines and build our future-ready workforce.
Employee Resource Groups
ERGs also play a vital role in integrating our company with the communities we serve. Whether through volunteer initiatives or strategic partnerships, they help us make a difference where it matters most. When our ERG members are out in the community, they exemplify our inclusive culture and drive a sense of belonging.
Connecting With Women in STEM Careers
In September, we engaged with potential talent at the Society of Women Engineers flagship conference, conducting on-site interviews and reviewing résumés at the Phillips 66 Networking Lounge.
Our Black Employee Network supports the HAUL Young Professionals University, a dynamic college and life-readiness program for high school students. Our employees motivate and participate hands-on with the students as they prepare for their futures.
Emerging Energy
We take pride in our history of supplying the energy that the world needs. Recognizing the growing demand for lower-carbon alternatives, we have adjusted our operations and portfolio to meet this demand.
Contact us with any questions or concerns. Find Refinery hotline numbers. Find Midstream pipeline hotline numbers.
Fostering College-Readiness With Houston Area Urban League (HAUL)
Society of Women Engineers Conference CHICAGO, IL
Young Professionals University HOUSTON, TX
When operational changes affect employees, contractors, labor unions or communities, we plan thoughtfully for a just transition. We aim to mitigate impacts through redeployment, skills training and community renewal, referencing the International Labor Organization’s (ILO) guiding principles.
For the conversion of our San Francisco Refinery to the Rodeo Complex, we engaged with community entities for approval, informed stakeholders through various channels and created training plans to give operators the skills they need to operate new and modified equipment. After decommissioning the adjacent Santa Maria Refinery and Carbon Plant as part of the project scope, all employees were offered jobs at other Phillips 66 facilities or given severance packages.
Change can also manifest as in the planned ceasing of operations in late 2025 at our Los Angeles Refinery. One of our top priorities through the transition is the safety and well-being of our employees, our business partners and our community.
Procurement
Phillips 66’s Supplier Diversity program stimulates local economic development by providing equal and impartial opportunities to small and diverse businesses within the community. By engaging with small and diverse suppliers, Phillips 66 broadens its sourcing options and gains exposure to new ideas, which is crucial for maintaining a competitive, innovative and resilient supply base.
Public Affairs
Perhaps the most visible and long-standing interaction with our communities is through direct communication. We promote open communication through community awareness campaigns, education and listening panels, social media and community hotlines. Our refineries have community advisory groups, e.g., Community Advisory Panels or Councils (CAPs or CACs), made up of volunteer community members and refinery leadership who meet regularly to discuss topics of mutual interest. Topics include site safety and operating performance, special educational topics, planned maintenance activities, community outreach programs and volunteering opportunities. Our Midstream pipeline operators have year-round education and listening panels to build community awareness. The panels inform those living or working near our pipelines or facilities of safe digging practices and how to respond if a leak is suspected.
Addressing Social Risks
We seek to adhere to national and local laws and regulations regarding environmental, social and health assessments before starting operations at any new site. Our comprehensive social risk assessments seek to understand any issues about proposed routes or projects. We strive to keep our stakeholders, including our communities, informed through media, our website, social media, door-todoor flyer distribution and public meetings.
Connecting With Indigenous Peoples
We respect and actively engage with Indigenous peoples through multiple channels and initiatives. We maintain relationships via our field communicators, CAPs and CACs, particularly with tribes near our operational facilities. We have a long-standing relationship with the Lummi Nation, whose members serve on our Ferndale Refinery CAP in Washington state. We are strengthening relations with the Otoe Missouri, Kaw, Tonkawa and Ponca tribes near our Ponca City Refinery in Oklahoma. We involve tribal representatives in our emergency training and drills, with the Lummi Nation participating in mid-case and worst-case scenario drills at Ferndale. In November 2024, during Native American Heritage Month, our Lake Charles Refinery recognized the designation with local Native American tribes, the Coushatta and the Atakapa-Ishak. The Phillips 66 Lake Charles Culture, Change & Diversity Team invited representatives from the tribes to its annual Taste of Diversity event at the refinery, which was also attended by members of our Executive Leadership Team (ELT).
When operational changes affect employees, contractors, labor unions or communities, we plan thoughtfully for a just transition.
Social Impact
Phillips 66 creates purposeful partnerships and aims to strengthen economic, social and environmental resilience and vitality in the communities where our employees live and work.
In 2024, we invested $30 million across our key focus areas of education equity, safety and well-being, social advancement and environment.
2024 Social Impact Highlights
increased contributions
by activating ST Math program in the Permian Basin.
awarded to Project Lead the Way
to support science, technology, engineering and math (STEM) curriculum in middle schools.
supporting United Way campaigns
across 10 of our locations.
provided for disaster relief
donated to Ponca City Public Schools in Oklahoma
to support Ponca City High School’s STEM facility.
$1.1 million $1.1 million $1 million $1.5 million $1 million 15 locations $6.5 million $560,000
donated to the SOWELA Technical Community College in Louisiana
to help expand the region’s only Process Technology Center and supported development of skilled process technicians.
Employee Volunteerism
worth of fuel donated in 2025
to Memorial Hermann Life Flight, a critical care air medical transportation service in Houston, Texas.
to the Red Cross for recovery efforts supporting New Mexico floods, Texas wildfires, Oklahoma wildfires/tornados and for funding of a blood donor emergency vehicle in their Kansas/Oklahoma division.
launched with the new Swim Safety program
in collaboration with local organizations, aimed at improving critical skills for at-risk communities.
The company promotes corporate volunteerism, e.g., Good Energy, with the option to volunteer for multiple initiatives annually. The company also supports personal volunteerism with two days of paid time off to volunteer with a qualified 501(c)(3) organization of the employee’s choice.
In April 2024, we completed our third annual Good Energy Month, an international campaign to unite employees to simultaneously embark on projects of all scopes and sizes to improve their communities. In one month, employees at our U.S. locations logged 16,000 volunteer hours, a 20% increase from the 2023 event. They completed approximately 75 service projects and raised $400,000 in volunteer grant dollars.
2024 projects included:
• Bartlesville – Clean Up Household Hazardous Waste.
• Bayway – Community Food Distribution.
• Borger – Community Home and Yard Improvements.
• Ferndale – Home Build for Local Family.
• Houston – FIRST (For Inspiration and Recognition of Science and Technology) Texas Robotics Competition Sponsorship.
• Lake Charles – Keep Louisiana Beautiful Cleanup.
• Los Angeles – Community Care Package Distribution.
• Ponca City – Friendship Feast Meal Service.
• Sweeny – Veteran Suicide Prevention Hike.
• Rodeo – Tree Planting.
• Wood River – Edwardsville Children’s Museum Micro Forest Cleanup.
• Humber – Inspiring Girls in STEM Program.
• London – Raising Funds for Children’s Air Ambulance.
• Singapore – Food From the Heart Food Packs Distribution.
Governance
Our business is built on good governance and ethics. These traits enhance our culture, sustainability and value.
Global Town Hall at headquarters HOUSTON, TX
DEMONSTRATING RESPONSIBLE STEWARDSHIP
Our values guide our processes, policies and decisions. Written policies and auditing programs create strong governance throughout our company and 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 efforts to maintain the highest levels of responsibility, integrity and legal compliance across our businesses.
Our highly qualified board of directors actively engages with Phillips 66 executive leadership on management strategies and stewardship. Our board regularly reviews evolving corporate governance best practices, regulatory requirements, shareholder feedback and emerging trends. Our senior leaders collaborate with our board to continue to enhance our high-performing organization. Each year, the board holds a multiday strategy session with the company’s senior leaders to review short-term and long-term strategic plans and priorities, as well as challenges and opportunities that may develop under various future scenarios.
For more information regarding our board of directors and board committees, please see our 2025 Proxy Statement. In addition, each board committee’s charter is posted on the Corporate Governance page in the Investors section of our website
Our board regularly reviews evolving corporate governance best practices, regulatory requirements, shareholder feedback and emerging trends. Learn more about our Corporate Governance structure.
Sustainability Governance
The success of our sustainability programs, policies and processes are supported by the leadership of the following committees, teams and roles:
BOARD OF DIRECTORS
Provides broad oversight of our sustainability strategy, goals and progress toward targets and public reporting. The Public Policy and Sustainability Committee includes all members of the Phillips 66 Board of Directors.
EXECUTIVE LEADERSHIP TEAM
Develops corporate strategy, manages sustainability issues, implements sustainability efforts and reports company performance.
SUSTAINABILITY EXECUTIVE STEERING COMMITTEE
Reviews program development and emerging sustainability risks and trends; approves execution of sustainability initiatives for the company. Includes a subset of the ELT.
SUSTAINABILITY WORKING GROUPS
Lead execution of specific sustainability initiatives, including our decarbonization strategy, methane management and lobbying activities disclosures.
ELT Borger Refinery visit BORGER, TX
Managing Risk
Our governance structure allows our board and ELT to exercise their risk responsibilities. Our ELT is responsible for the strategic and operational management of risks and opportunities.
Our comprehensive enterprise risk management program provides a systematic approach to identifying, assessing, mitigating and monitoring risks. These include commodity pricing impacts, climate-related issues, changes in energy policy or regulations, and physical or operational risks such as cybersecurity.
Each risk has a corporate owner, a member of the ELT, to facilitate accountability at the highest level of the organization. Cross-functional experts from our business units and corporate functions, led by our enterprise risk manager, review critical scenarios, drivers, potential consequences and mitigations. Outcomes from the risk management assessments are reviewed routinely by the ELT and the board.
Climate-Related Physical Risks
The potential physical effects of climate change and severe weather, as well as chronic issues like water shortages and rising sea levels, on our operations are highly uncertain and depend on unique geographic and environmental factors. We have systems in place to manage potential acute physical risks, including those that may be caused by climate change. Examples include pursuing returns-focused energy efficiency, water conservation and asset hardening projects.
Executing Our Strategy
Our business planning process examines internal and external factors to enable resilient and profitable operations while mitigating transitional risks. We consider key climate policies, access to capital, reputational risks, technological advancements and human capital opportunities, among others, in our decision-making processes.
To test our financial resilience, we evaluate both proprietary and public long-term energy demand scenarios in our corporate strategy planning. These scenarios include IHS Markit, the IEA Stated Policies and the IEA Sustainable Development, among others. By considering a variety of scenarios, we can assess our portfolio across different potential outlooks and evaluate our businesses’ competitive position.
We develop perspectives on potential market fundamentals, technological advancements, regulatory developments, and emerging risks and opportunities, including those related to climate. This enables us to identify necessary changes to our strategy and capital allocation, potential mergers and acquisitions, and investments to pursue, including lower-carbon options, to meet global energy needs. The ELT and the board review our strategy regularly to reinforce that Phillips 66 remains adaptive to the evolving energy landscape.
Consistent with our disciplined approach to capital allocation, we also conduct sensitivity analyses before funding specific investments to evaluate economic viability under different market, capital cost and regulatory uncertainty conditions. This comprehensive examination enables us to adapt and mitigate risks, thereby supporting the robustness and sustainability of our investments.
For examples of the risk factors relevant to our company, see our Annual Report on Form 10-K for the year ended Dec. 31, 2024.
As we move forward, we remain committed to continuously reviewing and refining our strategy to meet global energy needs and drive long-term success for our company and our stakeholders.
UPHOLDING COMPLIANCE AND ETHICS
Our Code of Ethics
Phillips 66 is committed to upholding the highest ethical standards in all our operations according to our values, ethics and policies. Our policies include the Code of Business Ethics and Conduct (Code of Ethics), Business Partners Principles of Conduct, U.K. Modern Slavery Disclosure and Human Rights Position. All of these are available on our website.
We expect everyone to act with integrity and abide by our Code of Ethics. All of our people participate in biennial ethics training and annually agree to comply with our Code of Ethics. Our Principal Executive Officer and senior financial officers must adhere to supplemental codes of ethics.
Our Compliance Policies
The Phillips 66 Global Ethics and Compliance (GEC) program drives our compliance with applicable laws and regulations and upholds our ethical standards. Overseen by the company’s Chief Compliance Officer, the GEC program identifies risks, establishes controls, prevents and remediates noncompliance issues, and routinely assesses compliance risks for continuous improvement. Regular training for our people is provided on these policies and ethical standards.
The Phillips 66 Global Economic Sanctions Policy, for example, sets forth principles and practices that support our compliance with sanctions. Employees of Phillips 66 and its subsidiaries engaged in international business transactions must be familiar with the basic elements of sanction laws and comply with them at all times. In accordance with this policy, all counterparties are required to undergo due diligence checks for confirmation that there are no sanctions issues before any transaction with the company occurs. Any concerns or violations of this policy are required to be reported, whether actual or suspected.
Another example is the Phillips 66 Global Anti-Corruption Policy that outlines our commitment to opposing corruption in any form and provides detailed guidelines for our employees, contractors and business agents to follow.
This policy prohibits both public and commercial bribery and includes a list of key terms, a summary of major antibribery laws such as the Foreign Corrupt Practices Act and the U.K. Bribery Act, the prohibition of facilitation and personal safety payments, management of third parties, business agents, joint ventures, engagement in charitable donations and political giving, GET or gifts, entertainment and travel conflicts. It requires all company personnel and certain high-risk contractors and business agents exposed to potentially significant corruption risks to be trained on the subject. Failure to comply with this policy or the procedures associated with it may result in disciplinary action, up to and including termination of employment.
Lastly, the Phillips 66 Antitrust and Competition Law Policy emphasizes global compliance with antitrust and competition laws that drive fair competition based on price, quality and other merits. This policy requires everyone to be sufficiently familiar with antitrust and competition laws and their content to be able to recognize potential problems and to seek assistance from our Legal department as appropriate. The policy covers the following focus areas:
• Dealings with competitors and potential competitors to avoid agreements that limit competition, such as price-fixing, market allocation, bid rigging and joint refusals to deal.
• Dealings with customers, distributors and suppliers to address vertical relationships and potential issues, such as bundling products, reciprocal dealing, exclusive contracts, resale price restrictions and non-price restrictions on distributors.
• Addressing monopolization and abuse of dominance to prevent the misuse of economic power to harm competitors or exploit customers, including predatory pricing and denying access to essential facilities.
• Consulting on mergers, acquisitions and joint ventures that emphasizes the need for legal consultation before proceeding with such transactions.
Whistleblower Program
Anyone can raise concerns or report violations involving our policies, whether actual or suspected, without fear of retribution. Our non-retaliation policy fosters an ethical workplace and a culture of integrity. Potential violations of our Code of Ethics or policies can be reported to supervisors or managers, local Legal departments, Human Resources, or the toll-free global ethics helpline, an anonymous resource that can be accessed via the internet or by telephone.
LOBBYING ON BEHALF OF THE COMPANY
Phillips 66 participates in the political process at all levels of government. We work with communities, environmental organizations, legislators and customers on public policy issues, including those related to climate change.
Our lobbying activity is governed by our political giving and activity policy. Within the policy, we provide extensive disclosures that include federal and state filings, political contributions, trade association memberships, political expenses and independent expenditures. Phillips 66 lobbies directly through contact with legislative or executive branch officials and indirectly through trade associations and memberships. We review company positions for messaging alignment and consistency of our lobbying activities in support of our strategy.
Trade Association Alignment
Phillips 66 collaborates with trade associations to advance policy, share technical expertise and develop industry best practices. We evaluate the business value of participating in these groups, which cover various issues, such as reliability, lessons learned from safety investigations and sustainability. While members may sometimes disagree on positions, we work to promote reasonable compromise and seek alignment on important issues. Phillips 66 does not control positions taken by
trade associations of which it is a member, and positions taken by trade associations of which Phillips 66 is a member may not always reflect the company’s views. We may discontinue membership if there is persistent misalignment or limited value from continued engagement.
Our Position on Climate Change
We support the goals of the Paris Agreement and are committed to being a part of the solution to help the world address climate change. Our approach is to improve the efficiency of our diversified and resilient operations and make investments to help meet the world’s evolving energy needs, including lower carbon.
We support a climate policy that:
• Offers market-based, economy-wide solutions that are fuel- and technology-neutral for all energy sources to facilitate 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 precommercial stage to advance viable energy solutions.
Climate Lobbying Assessment
Phillips 66 recognizes that supportive policies drive at-scale deployment of lower-carbon energy alternatives, and we engage with policymakers directly and through trade associations. Examples of recent collaborations include:
• Continued collaboration with AFPM, API and the Advanced Biofuels Association to promote favorable renewable fuels policies, including a higher obligation for “advanced” renewable fuels under the federal Renewable Fuels Standard as part of the post-2025 rulemaking. This policy directly supports the renewable diesel and sustainable aviation fuel production at the Rodeo Renewable Energy Complex.
• Participated with API and AFPM in the rulemaking process to implement key portions of the Inflation Reduction Act (IRA), supplementing individual company engagement. The API continues to advocate preserving specific IRA energy tax credits, such as carbon capture, hydrogen and renewable fuels.
• Ongoing work with biofuel associations, such as Growth Energy and the Renewable Fuels Association to pass federal legislation allowing the year-round sale of higher ethanol blends, namely E15.
• Continued engagement with federal policymakers on regulatory issues relevant to the Rodeo Renewable Energy Complex.
To assess our continued alignment with trade associations and memberships on climate-related positions in 2024, we:
• Reviewed global memberships having annual dues of more than $50,000 and having a portion applied toward lobbying activities.
• Assessed the trade association’s positions, advocacy actions and public statements supporting their climate policy.
• Quantified the level of alignment with our criteria.
We analyzed the climate positions of our trade association memberships to assess the alignment with Phillips 66’s climate positions. Those associations that have climate positions are aligned or mostly aligned with ours. Of those with published climate-related lobbying positions, details regarding the Paris Agreement vary. We did not identify any material misalignment.
Humber Refinery NORTH LINCOLNSHIRE, U.K.
2
Alignment With Phillips 66 Criteria
LEADING IN TRANSPARENT DISCLOSURES
Phillips 66 is rated by the CPA-Zicklin Index of Corporate Political Disclosure and Accountability, produced by the Center for Political Accountability and the Zicklin Center for Governance & Business Ethics at the University of Pennsylvania’s Wharton School. Through the transparency of our political activity disclosures, we have received the CPA-Zicklin Index Trendsetter or First-Tier rating for five consecutive years since 2020.
Employee-Activated Political Action Committee (PAC66)
PAC66 is a political action committee funded by voluntary contributions from eligible employees and board members. It supports federal and state political candidates who back responsible energy industry activities and relevant business issues. The PAC66 board, comprising a diverse group of employee volunteers, approves all disbursements in the best interest of the company and its shareholders, free from personal agendas.
SUPPORTING SUSTAINABLE PROCUREMENT
The products Phillips 66 manufactures significantly contribute to local, state and national economies. Phillips 66 strives to comply with applicable laws and provides disclosures for regulations such as the California Supply Chain Act, the Canada Fighting Against Forced Labor and Child Labor in Supply Chains Act and the Modern Slavery Act.
In keeping with our core values, the company chooses business partners objectively and fairly and acts with integrity. Phillips 66 is committed to verifying and monitoring our suppliers through our third-party due diligence process that is intended to protect people from harm, confirm adherence to industry-standard frameworks for quality, and monitor financial stability. In addition, as a government supplier, we track and report selected metrics required for the government bidding process.
Procurement Policy
Our Procurement Policy governs the company’s procurement activities by establishing authority levels, roles and responsibilities. It sets the expectation that only procurement professionals will engage in certain activities. The scope of Procurement’s activities encompasses:
• Managing procurement records and methods for procuring materials and services.
• Leading sourcing activities in partnership with the business unit.
• Communicating with suppliers while maintaining strict confidentiality during all interactions.
• Fostering a resilient supplier base.
• Developing category strategies and an approved list of suppliers of materials and services.
• Leading contract negotiations and approvals in partnership with the business unit.
• Handling commercial claims, disputes, invoicing and payment issues.
• Managing company inventory, including the sale, disposal or transfer of surplus.
Procurement Training
Periodic companywide Procurement Policy training is required for most employees. Adherence to this policy is mandatory with noncompliance potentially resulting in disciplinary action. Procurement professionals receive a wide variety of additional training to increase functional skills and continuously improve.
2,761
hours invested in training over 5,504 employees in the Procurement Policy
Having more qualified small and diverse suppliers is a win for us, a win for local communities, and it helps us all deliver more energy to the world.”
Scott McRee Vice President, Procurement
Our Supply Chain Expectations
Our business partners and suppliers are contractually expected to comply with the requirements of our Business Partner Principles of Conduct, updated in 2024. These principles, benchmarked against the United Nations Global Compact and our peers, require our suppliers to work with our employees in a manner consistent with our values and Code of Ethics. Priorities include fair wages, nondiscrimination practices, no human trafficking, anti-bribery, cybersecurity, no child labor, the right to associate or bargain collectively, and upholding applicable HSE laws and regulations.
We also engage with existing suppliers to incorporate innovative products and execute continuous improvement opportunities.
Diversifying Our Suppliers
Phillips 66 seeks to work with small and diverse businesses across our operations, and we are committed to providing equal and impartial opportunities. Our Supplier Diversity program promotes inclusivity without reducing standard obligations or giving an advantage in contractor selection. It establishes collaborative relationships, digital tools and dashboards, and internal metrics for benchmarking diverse supplier utilization in alignment with our business needs. We believe this approach stimulates local economic development and enhances our long-term business performance by improving supplier engagement, competition and sustainability.
We are members of the National Minority Supplier Development Council and the API Energy Task Force, and we actively support API supplier diversity activities. In 2025, for the third consecutive year, we participated in the API Pathways to Excellence cohort, which focused on developing small and diverse suppliers in the oil and natural gas supply chain. A tour of the Sweeny Refinery was offered to graduates of the cohort in 2024 to illustrate how their goods and services can impact the industry.
In 2025, Phillips 66 hosted the graduation ceremony of the cohort. The 30-member cohort underwent six months of learning across seven areas, which included safety, cybersecurity, quality, corporate policies, financials, technical capabilities and sustainability. Thanks to mentorship from Phillips 66 executives and others from across the industry, the graduates closed hundreds of business gaps and achieved an average 95% compliance rate against key international standards.
Supporting the Fight Against Human Trafficking
In 2024, Phillips 66 continued its sponsorship of Truckers Against Trafficking (TAT), a 501(c) (3) organization. TAT’s mission is to “educate, equip, empower, and mobilize members of the trucking and busing industries to combat human trafficking.” Through TAT’s training, participants learn how to recognize the signs of human trafficking and what to do if they suspect someone is in trouble.
The Phillips 66 Women’s Network hosted TAT for a human trafficking awareness webinar and welcomed representatives from our Midstream business who participated in the TAT Coalition Build in Midland, Texas. Our Logistics and Transportation division raised awareness and education among our trucking employees, two contracted trucking carriers and people selling our fuel at convenience stores.
Blue Wave Supplier Development Program graduation ceremony HOUSTON, TX
Appendix
Sweeny Refinery
OLD OCEAN, TX
ABOUT THIS REPORT
Phillips 66 has published annual sustainability metrics and information since the company was founded in 2012. In this year’s report, we continued to assess our operations against the Sustainability Accounting Standards Board (SASB) materiality criteria for our Midstream, Refining, Marketing and Specialties, and Renewable Fuels businesses. We report metrics most relevant to our businesses and stakeholders in accordance with the Global Reporting Initiative (GRI) standards. We have also incorporated relevant topics as set by the International Sustainability Standards Board (ISSB).
We considered industry trade association publications, including sustainability reporting guidance for the oil and gas industry. Our most recent disclosures aligned with the Task Force on Climate-Related Financial Disclosures (TCFD) Analysis can be found throughout the report. Phillips 66 participates annually in the CDP Climate Change and Water Security surveys
In some instances, we used AI-powered tools to assist in the creation of the narrative sections of this report. The AI-powered tools were prompted with specific questions and guidelines, and all content was reviewed and edited by our subject-matter experts to verify accuracy and clarity.
Unless otherwise stated, this report is intended to highlight some of Phillips 66’s performance in 2024 and includes the results of our operated joint ventures, such as WRB Refining LP; it is not a comprehensive description or representation of all of Phillips 66’s sustainability activities during that time. Chevron Phillips Chemical Company LLC (CPChem) publishes a separate sustainability report on its website.
Figures and metrics throughout the report are approximated and may be rounded. The performance data can vary from year to year or over multiple years due to several factors, including updates in methodology or changes in portfolio and business initiatives. Data covering prior reporting periods have not been normalized to include assets before they were operated by Phillips 66. For example, performance data prior to 2023 does not include DCP Midstream operated assets, unless otherwise noted. Restatements to data previously reported and justification have been noted in the performance data tables.
PERFORMANCE DATA TABLES
PERSONAL AND PROCESS SAFETY
GREENHOUSE GAS5
Direct GHG Emissions (Scope 1)6
Direct GHG Emissions (Scope 1) - All GHGs
Indirect GHG Emissions From Imported Energy (Scope 2)9
Indirect GHG Emissions (Scope 2) - All GHGs
-
Indirect GHG Emissions From Products (Scope 3)10
Indirect GHG Emissions From Products (Scope 3)11
Intensity - GHG Emissions12
Water16
Performance Data
2024 EEO-1 DATA32
1 As defined by the Occupational Safety and Health Administration (OSHA). All rates are calculated as incidents per 200,000 work-hours.
2 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.
3 Calculated using the OSHA incident rate formula. Incidents per 200,000 work-hours.
4 Tier 1 and Tier 2 Process Safety Events differ by release rate, type of product and impact as defined by the American Petroleum Institute Recommended Practice 754.
5 The company reports relevant 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 and MiRO Refinery 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 the Rodeo Renewable Energy Complex, refineries and associated facilities. The global warming potentials for each GHG are sourced from the Intergovernmental Panel on Climate Change Fourth Assessment Report (AR4), Appendix A: Global Warming Potentials prior to 2024. Starting in 2024, the Intergovernmental Panel on Climate Change Fifth Assessment Report (AR5) is used. 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 (EPA GHGRP) and U.K. and EU Emissions Trading System (U.K. and EU ETS). Regulatory frameworks may differ from the frameworks referenced in this report and, accordingly, agency data may vary. Beginning in 2024, Scope 1, 2 and air emissions from minor emissions facilities, such as lubricants facilities and corporate offices, are included as a five-year average (2019-2023).
6 Scope 1 direct GHG emissions by the company, such as fuel combustion and fugitive emissions, including those from Rodeo Renewable Energy Complex, operated refineries, natural gas plants, NGL fractionators, pipelines and terminals are calculated utilizing actual emissions data. If actual data was not available, emissions were calculated utilizing emission factors referenced in the EPA GHGRP for all U.S. assets and the U.K./EU ETS for U.K. and European assets, respectively. Phillips 66 does not include emissions from operated vehicles as they are not considered material to our operations.
7 Biogenic emissions are excluded from Scope 1 and reported separately. California biogenic emissions are calculated as required by the California Air Resources Board. The U.K. biogenic emissions allocation is proportionately estimated based on the fraction of biogenic feed to total conversion unit feed.
8 Midstream G&P methane emissions reported in 2024 are 41,137 metric tons, which includes 6,847 metric tons of methane beyond EPA GHGRP methods. Methane emissions reported in 2023 are 43,305 metric tons, which includes 7,347 metric tons of methane beyond EPA GHGRP methods.
9 Scope 2 indirect emissions are from imported electricity and steam used in our operated refineries, natural gas plants, NGL fractionators, compressor stations, gas processing plants, NGL pump stations, pipelines, terminals, lubricants facilities, corporate headquarters and research facilities. In 2020 and 2021 data, the Sweeny cogeneration unit is assumed to supply all electricity to the Sweeny NGL Fractionator. In 2022 and later, all Sweeny Refinery electricity is assumed to be imported. 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. For European assets, GHG emissions are calculated using U.K. Government Conversion Factors for GHG emissions as of July 2024. Previous years calculated with the conversion factors available at time of publication.
10 Product-related emissions include Scope 3 emissions from products manufactured in operated Refining assets, the Rodeo Renewable Energy Complex 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 2025. GHG emissions for NGL fractionators are calculated using the EPA factors identified in Table NN-1 of 40 CFR Part 98 as of March 2025. 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 2024.
11 Restated from 2023 reporting. Correction after internal site reporting.
12 Manufacturing-related intensity is calculated as Scope 1 and 2 metric tons of CO₂e divided by processed inputs. Processed inputs include feedstocks, such as crude, renewable feedstocks, natural gas and NGLs, processed in operated global Refining, Rodeo Renewable Energy Complex, Excel Paralubes, natural gas plants 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 and renewables 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 Spills beyond secondary containment; includes free product recovered; does not include remediated soil.
16 Refining only.
17 Freshwater is defined as water that has low salinity – usually less than 0.1% (local legal definitions vary). Water recycling 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.
18 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.
19 1,000 bbls of water per 1,000 bbls of processed inputs.
20 Water consumed is primarily due to evaporative losses (e.g., operation of cooling towers).
21 Water that has been treated to meet National Pollutant Discharge Elimination System permits.
22 Restated from 2023 reporting. Previous data included condensate rather than produced water for G&P assets.
23 Consists of both hazardous and non-hazardous waste streams, including refinery process catalyst captured for metals reclamation.
24 Total processed inputs, Refining, includes products from global Refining and Rodeo Renewable Energy Complex.
25 Total processed inputs include products from global Refining, Rodeo Renewable Energy Complex, Excel Paralubes, NGL fractionation, and gathering and processing fractionation.
26 Soybean oil, canola oil, distillers corn oil, used cooking oil, tallow and tire pyrolysis oil.
27 Total energy consumption is imported electricity from traditional and renewable/zero-carbon sources, site-generated electricity (cogeneration plants), fuel consumption for non-flaring combustion and imported steam for all operated assets.
28 Power consumed is imported electricity from traditional and renewable/zero-carbon sources and site-generated electricity from cogeneration plants.
29 Energy Intensity ratio for operated assets. Calculated as total energy consumed per Refined Petroleum Products and NGLs fractionated globally.
30 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.
31 Unless otherwise specified, data represents our global workforce, excluding subsidiaries.
32 U.S. Workforce.
33 Retention rate of high performers.
34 Invested in 2024 across key focus areas through national and local partnerships and our Employee Giving programs. This total does not include special one-time gifts.
35 2024 does not include retiree hours.
36 View our 2025 Proxy for board composition and experience.
TCFD DISCLOSURE INDEX
Phillips 66’s reporting on climate-related risks is aligned with the framework developed by the Financial Stability Board’s Task Force on Climate-Related Financial Disclosures. The table below summarizes where the information can be found in this report. Additional information can be found in the company’s Proxy Statement, Annual Report and CDP corporate questionnaire.
Disclosure Description Page
Governance
The organization’s governance around climate-related risks and opportunities.
Strategy
The actual and potential impacts of climate-related risks and opportunities on the organization’s businesses, strategy and financial planning.
Describe the board’s oversight of climate-related risks and opportunities. 7, 38
Describe management’s role in assessing and managing climate-related risks and opportunities. 21, 38
Describe the climate-related risks and opportunities the organization has identified over the short-, medium- and long-term.
Describe the impact of climate-related risks and opportunities on the organization’s businesses, strategy and financial planning.
Describe the resilience of the organization’s strategy, considering different climate-related scenarios, including a 2°C or lower scenario.
12-14, 20, 23
39
41
Risk Management
The processes used by the organization to identify, assess and manage climate-related risks.
Metrics and Targets
The metrics and targets used to assess and manage relevant climate-related risks and opportunities.
Describe the organization’s processes for identifying and assessing climate-related risks.
Describe the organization’s processes for managing climate-related risks.
Describe how processes for identifying, assessing and managing climate-related risks are integrated into the organization’s overall risk management.
Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk management process.
39
20-22, 39
Disclose Scope 1, Scope 2 and, if appropriate, Scope 3 greenhouse gas (GHG) emissions and the related risks. 20, 39
Describe the targets used by the organization to manage climate-related risks and opportunities and performance against targets. 20, 51-52
This report 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, including statements regarding our corporate responsibility matters, including plans, goals, targets, aspirations, commitments, strategies, or expectations with respect to political engagement, lobbying, philanthropy, suppliers and procurement, environmental sustainability (including the 2030 and 2050 GHG emissions intensity reduction targets), data privacy, cybersecurity, and our business transformation initiatives, as well as statements from third parties about our ESG performance and risk profile and statements about our future financial performance and business. Words and phrases such as “aim,” “is anticipated,” “is estimated,” “is expected,” “is planned,” “is scheduled,” “is targeted,” “believes,” “continues,” “intends,” “will,” “would,” “objectives,” “goals,” “projects,” “efforts,” “strive,” “seek,” “endeavor,” “strategies,” “priorities” 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 forward-looking. Forwardlooking 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 or promises that any such goals, targets, plans, initiatives, projections, prospects, aspirations, commitments, strategies, or expectations set forth in this report can or will be achieved or maintained, and you should not unduly rely on them as they involve known and unknown risks, uncertainties and assumptions that are difficult to predict and often beyond our control. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in such forwardlooking 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 our products; the inability to timely obtain or maintain permits necessary for capital projects; changes to government policies relating to renewable fuels and GHG that adversely affect programs like the renewable fuel standards program, low carbon fuel standards and tax credits for biofuels; the pace of technological 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, including the use of alternative or renewable fuels; our ability to efficiently and economically reduce the carbon intensity of our operations; fluctuations in market conditions and demand impacting the prices of NGL, crude oil, refined petroleum products, renewable fuels, renewable feedstocks and natural gas prices, and changes in refined product, marketing and petrochemical margins; changes in costs for constructing, modifying or operating our facilities; difficulties in manufacturing, refining or transporting our products; the level and success of producers’ drilling plans and the amount and quality of production volumes around our midstream 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; changes in the cost or availability of adequate and reliable transportation for NGL, crude oil, natural gas, refined petroleum and renewable fuels products; liability resulting from pending or future litigation or other legal proceedings; liability for remedial actions, including removal and reclamation obligations under environmental regulations; failure to complete construction of announced or future capital and other projects on time and within budget; our ability to comply with governmental regulations or make capital expenditures to maintain compliance; limited access to capital or significantly higher cost of capital, related to changes in our credit profile or illiquidity or uncertainty in the domestic or international financial markets; damage to our facilities due to accidents, weather and climate events, civil unrest, insurrections, political events, terrorism or cyberattacks; domestic and international economic and political developments including armed hostilities (such as the war in Eastern Europe); changes in estimates or projections used to assess fair value of intangible assets, goodwill and properties, plants and equipment and/or strategic decisions or other developments with respect to our asset portfolio that cause impairment charges; substantial investments required, or reduced demand for products, as a result of existing or future environmental rules and regulations; changes in tax, environmental and other laws and regulations (including alternative energy mandates) applicable to our business; economic, political and regulatory conditions domestically and internationally, including imposition of tariffs or other tax incentives or disincentives; the operation, financing and distribution decisions of equity affiliates we do not control; the potential impact of activist shareholder actions or tactics; 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 (the “SEC”). 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.
In addition, historical, current, and forward-looking sustainability-related statements, and standards of measurement and performance, are developing and based on assumptions that are subject to change, which may impact current or historical goals, targets, aspirations, commitments, or estimates; diligence, internal controls, and processes that continue to evolve; and data, certifications or representations provided or reviewed by third parties, including information from acquired entities that is incomplete or subject to ongoing review, or has not yet been integrated into Phillips 66’s reporting processes.
The information included in, and any issues identified as material for purposes of, this report shall not be considered material to Phillips 66, its operations, strategy, or financial results, or its stakeholders for SEC or other mandatory reporting purposes. In the context of this document, the term “material” is distinct from, and should not be confused with, how such term is defined for SEC or other mandatory reporting purposes.
Website References and Hyperlinks
Website references and hyperlinks throughout this report are provided for convenience only, and the content on the referenced websites, including, but not limited to, the CPChem sustainability report, is not incorporated by reference into this document, nor does it constitute a part of this document. We assume no liability for any third-party content contained on the referenced websites.
Use of Non-GAAP Financial Information
References in this report to shareholder distributions and returns to shareholders refer to the sum of dividends paid to Phillips 66 stockholders and proceeds used by Phillips 66 to repurchase shares of its common stock.
Segment EBITDA is defined as segment income before income taxes plus depreciation and amortization. Adjusted segment EBITDA is defined as EBITDA plus the proportional share of selected equity affiliates’ net interest expense, income taxes, and depreciation and amortization less the portion of adjusted EBITDA attributable to noncontrolling interests and excluding items that do not reflect the core operating results of our business in the current period or other adjustments to reflect how management analyzes results. Net income is the most directly comparable GAAP financial measure for the consolidated company and income before income taxes is the most directly comparable GAAP financial measure for operating segments.
References to run-rate cost savings or run-rate business transformation savings include cost savings, and references to “run-rate synergies” include cost savings and other benefits that are captured in the sales and other operating revenues impacting gross margin; purchased crude oil and products costs impacting gross margin; operating expenses; selling, general and administrative expenses; and equity in earnings of affiliates lines on our consolidated statement of income. References to run-rate savings represent the sum of run-rate cost savings and run-rate sustaining capital savings.
Net-debt-to-capital ratio is defined as the debt-to-capital ratio, exclusive of total cash and cash equivalents.
