PROVIDE ENERGY AND IMPROVE LIVES.
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1 2016 HIGHLIGHTS Phillips 66 manufactures the energy products that make modern life possible. We support global economic growth and contribute to the well-being of our communities.
2 At Phillips 66, our MISSION IS TO PROVIDE ENERGY AND IMPROVE LIVES. To Our Stakeholders: For more than 140 years, Phillips 66 has been dedicated to meeting the world s energy needs responsibly, efficiently and sustainably. For us, sustainability means manufacturing and delivering affordable, clean products in a safe and environmentally sound manner. Our sustainability efforts are built on four pillars: operational excellence, environmental commitment, social responsibility and economic performance. Today, about 80 percent of the world s energy is supplied by fossil fuels because they are widely accessible, highly efficient and cost-effective. As the population increases and worldwide development grows, access to abundant, affordable, reliable energy will be essential to sustaining modern life and improving the global standard of living. We believe that all incidents are preventable, and that every process can be improved. We are proud of our personal safety rate, and we apply our Health, Safety and Environmental Management System across all businesses to ensure a safe workplace with minimal impact on our neighbors and the environment. Phillips 66 emphasizes building capability, pursuing excellence and doing things the right way. More than one-third of our U.S. refineries have earned the U.S. Environmental Protection Agency ENERGY STAR Award, which recognizes their top-quartile energy efficiency performance. In addition, 25 of our sites have received Voluntary Protection Program (VPP) certification for their strong safety records and comprehensive safety and health management systems. We are dedicated to improving the lives of our employees and their families and those who live in the communities where we live and work. For our employees this includes providing competitive salaries and benefits, a safe working environment, opportunities for advancement and wellness programs. For our communities around the globe, we champion safety and preparedness, contribute to local environmental programs, support relief initiatives and mobilize employee volunteers. We invite you to explore highlights of our sustainability performance here and in greater detail in the sustainability section of our website. In safety, honor and commitment, Greg C. Garland Chairman and Chief Executive Officer Phillips 66 Greg Garland with students at an Innovation Lab Phillips 66 funded for the Bartlesville, Oklahoma, public schools. The labs introduce students to engineering, robotics and independent, original research. 66% 54 EMPLOYEES HAVE MORE THAN 5 YEARS TENURE HOURS IN T
3 Contributing to the Our Sweeny Refinery, in Old Ocean, Texas, produces a high percentage of gasoline, diesel and aviation fuels. Other products include petrochemical feedstocks, home heating oil and fuel-grade petroleum coke. OPERATIONAL EXCELLENCE Environmental commitment Our passion for operating excellence drives us to continuously improve in safety, environmental stewardship, reliability and cost efficiency. For all of us who work at Phillips 66, ensuring that everyone goes home safe, every day, is a core value. Our commitment to excellence compels us to invest in environmental projects and sustaining capital to improve our operations. The results are industry-leading practices and improved environmental performance. Anyone visiting or working at our sites is empowered to stop any work they believe poses a risk to themselves or the people around them. If we can t do something safely, we won t do it. Incidents per 200,000 hours worked IMPROVED PERSONAL SAFETY RATE combined workforce ( ) 0.4 Phillips Industry Average 0.2 Our mechanical integrity program provides for regular inspections of pipelines to identify and prioritize maintenance, avoid releases and ensure safe operations. Phillips 66 refineries are voluntarily eliminating atmospheric vents beyond required standards for greater safety and environmental performance. All 14 of our refineries have control system units that require mitigating action well before conditions reach permitted limits. We have significantly reduced emissions of sulfur oxides (SOx), nitrous oxides (NOx) and particulate matter (PM). Additionally, we monitor greenhouse gas (GHG) emissions from our operations and focus on increasing our energy efficiency to manage them. Over the most recent five-year period, while refining utilization has increased, our direct GHG emissions have not risen. We used advanced remediation concepts in streams and rivers in Lake Charles, Louisiana, to provide a natural habitat for fish and frogs. Our goal is zero process safety and personal injury incidents. As our journey toward that goal continues, we use systems and programs to increase human reliability and to reduce errors. The results are measurable improvements. We set a company record for low injury rates in 2014 and repeated that performance in In addition to personal and process safety, operating excellence includes achieving efficiencies. Energy costs can account for about 40 percent of a refinery s operating expense, so we ve implemented management systems to decrease our energy consumption and expenses. Energy dashboards help improve efficiency and strengthen the connection between energy management and business performance. 4,000 1,442 S VOLUNTEERED BY EMPLOYEES THEIR LOCAL COMMUNITIES CHARITABLE ORGANIZATIONS RECEIVED MATCHING GIFT DONATIONS Thousand tons DECLINING Air Emissions 40 Proportional ownership for currently operated U.S. assets ( ) 30 SOx, NOx, PM Third parties have recognized our commitment. For example, in 2015, the U.S. EPA selected Phillips 66 as the first energy company recipient of the Greenovations Award for outstanding environmental stewardship. This award was given for creating a self-sustaining green space as part of a remediation project in a section of the Bayou Verdine in Louisiana. Pipeline systems are the industry s safest means of transporting energy products throughout the United States.
4 well-being OF OUR COMMUNITIES Social RESPONSIBILITY Our commitment to communities extends to providing local emergency responders with safety and responsiveness training, resources and advanced warning systems. Also, virtually all of our refineries maintain community advisory councils for two-way communication with our neighbors. We seek to improve the lives of current and future generations. Phillips 66 supports educational programs that promote energy, civic and business literacy; reading skills; and science, technology, engineering and math (STEM). These include the MIND Research Institute, Junior Achievement and the Early Literacy Leadership Academy at Rice University. Our partnership with the National Energy Education Development Project supports energy education with a curriculum for more than 5,000 teachers and 430,000 students. We support higher education through financial aid programs, such as the Dependent Scholarships and Shield Scholars programs, and through real-life experience. Each summer, college juniors and seniors intern at our major facilities and office centers. This work experience broadens their education and provides us with great talent. Within our company, we sponsor nearly a dozen Employee Resource Groups (ERGs) that foster professional development, networking, cultural awareness, community involvement and ongoing recruiting activities. Over 25 percent of our employees participate in ERGs. Phillips 66 employees regularly volunteer their time, which includes planting trees as part of our partnership with Trees for Houston. Economic performance Phillips 66 is a growing, diversified energy manufacturing and logistics company. We re proud of our heritage as a values-based company. We run our business with a high standard of integrity and ethics, committed to ensuring safe, reliable operations. Phillips 66 provides the gasoline to drive to work and school and the diesel and aviation fuel to move people and goods. We also provide the plastics used in consumer and medical products and the natural gas and liquids that power businesses. By offering affordable, abundant and reliable energy to businesses and consumers, Phillips 66 helps the global economy thrive. We have four major business segments Midstream, Chemicals, Refining, and Marketing and Specialties. Our global businesses draw on a unique asset base and decades of technical and operational expertise to serve local needs. Our master limited partnership, Phillips 66 Partners, and our joint ventures (Chevron Phillips Chemical Company, DCP Midstream and WRB Refining) are an integral part of our business portfolio. Our researchers are able to scale new ideas from beakers to labs and then to pilot plants, providing Phillips 66 with the ability to run our refineries more efficiently and to solve today s and tomorrow s energy challenges. We seek solutions for tomorrow s energy needs, from opportunities to blend biofuels into clean products to co-founding forward-looking think tanks, such as the Fuels Institute. Phillips 66 is one of the few energy companies with a state-of-the-art Research Center. We have more than 350 scientists and engineers in Bartlesville, Oklahoma, conducting research to enhance the safety and reliability of our operations and to develop air, water and energy solutions. 10,000 POUNDS OF PRECIOUS METALS RECYCLED 100% OF FACILITIES WITH EMERGENCY RESPONSE TEAMS WORK WITH LOCAL FIRST RESPONDERS >400 ACTIVE PATENTS IN 30 COUNTRIES
5 BARRELS OF CRUDE OIL PROCESSED GLOBALLY EACH DAY BY THE NUMBERS * IN 1 5 OF OUR EXPERIENCED NEW HIRES IN U.S. REFINING IS A VETERAN REDUCTION IN PARTICULATE MATTER ( ) 57 % $71 MILLION DONATED TO CHARITY, INCLUDING RED CROSS AND UNITED WAY ( ) 90 REDUCTION IN SOx EMISSIONS ( ) $ 13 BILLION $ 49 BILLION % INVESTED IN REFINING ENVIRONMENTAL PROJECTS AND IMPROVEMENTS ( ) MORE THAN $ 5.4 BILLION SINCE INCEPTION TO FUND GROWTH AND OPERATING EXCELLENCE TOTAL ASSETS 55 OUR 14,000 EMPLOYEES % REDUCTION IN NOx EMISSIONS ( ) 0.19 PERSONAL SAFETY RATE (2014 & 2015) 30% 32% 38% MILLENNIALS BOOMERS GEN X MILES OF PIPELINE MANAGED IN THE U.S. 18, MILLION COUNTRIES WHERE FINISHED 79 LUBRICANTS & BASE OILS ARE MARKETED 9,925 8,830 *All data as of Dec. 31, 2015, unless otherwise noted. WORLDWIDE BRANDED STATIONS
6 IMPROVING LIVES: MAKING A DIFFERENCE Phillips 66 makes a positive impact in local communities where we live and work by matching employee giving and volunteer grants, and through many local and national corporate contributions and educational scholarships. A few of these programs highlight the ways we are giving our energy: Making a Splash to Save Lives Phillips 66 s national sponsorship of USA Swimming began in 1973 and endures as the longest consecutive sponsorship of any amateur sport in history. Through this partnership, we have learned that drowning is the second-leading cause of unintentional death for children under the age of 14. In 2009, we joined forces with the USA Swimming Foundation and Olympic athletes on their Make A Splash tour to raise awareness about the importance of learning to swim. Structured swimming lessons can reduce the likelihood of childhood drowning by 88 percent. Parents who can swim are more likely to give their children this lifesaving skill. So far, Make A Splash has taught more than 4 million kids to swim. We are working to make a difference in this generation and beyond. Making a Home to Serve Families Habitat for Humanity reports that decent, stable housing provides more than just shelter. It provides health and physical safety and a sense of dignity and pride, while increasing educational and job prospects. Whether raising a roof or building a strong foundation, Phillips 66 employees are improving homes and lives with Habitat for Humanity. We support Habitat s mission to build energy-efficient, affordable homes and, through its neighborhood revitalization initiatives, repair older homes for low-income families. Our employees take pride in grabbing their tools and helping our neighbors on numerous Habitat for Humanity homes. Making Learning Fun to INSPIRE Children Illiteracy and high school drop-out rates are highly connected. We believe the ability to read and write, speak clearly and think critically improves the quality of life. For many years, Phillips 66 has served as the title sponsor of the Barbara Bush Houston Literacy Foundation s Celebration of Reading. Our employees regularly give their time to promote reading and the power of literacy to children. Printed on post-consumer recycled paper 2016 Phillips 66 Company. All rights reserved CM > sustainability P.O. Box 4428, Houston, TX 77210
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