Sustainability & ESG

Our Approach

We take a strategic approach to sustainability and human capital management which includes a focus on operating excellence, minimizing our impact on the environment, developing our high-performing organization and engaging with our stakeholders.

Our Environmental Performance

We strive to continuously reduce our environmental footprint by being more efficient while reducing natural resource use. We pursue returns-focused investments in emissions reductions, nature conservation and biodiversity.

Air Emissions

Air emissions include nitrogen and sulfur oxides, particulate matter and volatile organic compounds. 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. 

Biodiversity and Conservation

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. Locally, we support our immediate communities.

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 state and local regulatory bodies. We use existing pipeline corridors, where feasible, and construction techniques designed to minimize the impact on the environment, local communities, wildlife and natural resources.

Water

We seek to manage water responsibly. We consider local water demand in prioritizing projects to improve efficiency and reduce our environmental footprint. Our refineries, Beaumont Terminal and Rodeo Renewable Energy Complex have on-site wastewater treatment systems and oil recovery units. We operate biological treatment plants and pretreatment facilities at several of our facilities in North America and the United Kingdom. We also strive to meet or exceed environmental performance standards from the National Pollutant Discharge Elimination System and other industrial pretreatment permits.

Waste and Recycling

We have waste management programs at our facilities to handle waste materials from creation to final disposition in a way that is designed to protect human health and the environment. We also have a systematic hazardous waste program with processes and practices executed by trained personnel. We seek to recycle or dispose of the residual product in compliance with strict environmental laws.

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Our Sustainability and People Report

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Our Strategic Pillars

Environmental Stewardship

Reducing our environmental footprint by managing natural capital, progressing initiatives to reduce, recycle and reuse, and advancing lower-carbon solutions

Social Responsibility

Committing to the well-being of our employees and creating an inclusive culture where diversity can thrive, engaging with our stakeholders and investing in our people and communities

Governance

Serving the interests of all stakeholders with the highest standards of responsibility, ethics and integrity

Operational Excellence

Ensuring personal and process safety, environmental stewardship, reliability and cost efficiency while protecting shareholder value

Financial Performance

Delivering shareholder value through our disciplined approach to capital allocation and focus on returns

Our Initiatives

Enhancing Our Core Business


  • Strengthening our resilience
  • Leveraging digital innovations
  • Increasing efficiencies and productive of workforce and operating assets
  • Progressing GHG Emissions Reduction Targets

Building a Lower-Carbon Growth Platform


  • Extending through value chain adjacencies
  • Pursuing scalable investments
  • Leveraging expertise, experience and leadership in research and innovation
  • Continuing capital discipline with emphasis on returns

Sustainability Governance

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.

Develops corporate strategy, manages sustainability issues, implements sustainability efforts and reports company performance.

Reviews program development and emerging sustainability risks and trends; approves execution of sustainability initiatives for the company. Includes a subset of the ELT.

Leads execution of specific sustainability initiatives, including our decarbonization strategy, methane management and lobbying activities disclosures.

GHG Emissions Reduction Targets

Our company has made meaningful progress toward developing a lower-carbon business, based on achievable targets and thoughtful strategy.