Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Safety & Emergency Preparedness
• Social Responsibility
• Governance & Ethics

Environmental Achievements

• Reduced GHG emissions by approximately 20% to 25% with the 2015 Butane Recovery Project
• Lowered the carbon intensity of crude slate by creating opportunities for lower carbon intensity crude sourcing with the 2015 Crude by Rail Project
• Net GHG emission reduction ranging from 184,000 to 304,000 tonne/yr resulting from lower transportation emissions with the 2020 Next Gen Renewable Fuels Logistics Project

Social Achievements

• 67% reduction in recordable incidents at Northwest retail locations from 2019 to 2021
• Significant investments in new refinery units and rebranding retail stations in Hawaii
• Nearly $45,000 in sponsorships and donations to various non-profit organizations in Weston County, Wyoming in 2021
• Nearly $60,000 contributed to local partners and employee volunteer time at a food bank in Tacoma, Washington

Governance Achievements

• Welcomed two new independent directors in 2021, enhancing board diversity and expertise

Climate Goals & Targets

Environmental Challenges

• Potential legislative and regulatory actions addressing climate change
• Remediation and other corrective actions for environmental matters
• Operating risks including fires, explosions, maritime disasters, cybersecurity breaches, and pipeline and mechanical failure of equipment
• Severe weather-related risks and natural disasters
• Risk of spills, discharges, or other releases of petroleum or hazardous substances
• Commodity price volatility

Mitigation Strategies

• Assessing new technologies and seeking energy transition opportunities
• Evaluating and enhancing risk assessment processes to identify and mitigate risks
• Implementing safety policies and procedures, providing training, and conducting regular audits

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather-related risks and natural disasters

Transition Risks

• Potential legislative and regulatory actions addressing climate change

Opportunities

• Energy transition opportunities
• Development of renewable fuels

Reporting Standards

Frameworks Used: SASB

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Safety & Emergency Preparedness
• Social Responsibility
• Governance & Ethics

Environmental Achievements

• Invested $2 million in Tacoma refinery's distillate hydrotreater unit to enable co-processing of low-carbon feedstocks, starting operations in July 2023.
• Announced a $90 million investment in Hawaii to convert a distillate hydrotreater unit to process renewable feedstocks and produce SAF, breaking ground in summer 2023.
• Tacoma refinery received North and South American Fuels Refinery PACE setter awards for efficiency in energy and emissions.
• Implemented an $8 million project in Tacoma refinery that improved crude flexibility and reduced GHG emissions by more than 10,000 metric tons of CO2 equivalent.

Social Achievements

• Hele raised $40,708.98 for Special Olympics Hawaii through the Fueling Dreams campaign.
• Par Hawaii gave $50,000 to Aloha United Way, and employees raised over $41,500.
• Wyoming Refining Company donated $35,000 to 29 local charities and raised over $27,500 through a charity golf tournament.
• Nomnom raised $42,000 for The Salvation Army’s ‘Backpacks for Kids’ program.
• Reduced recordable injuries at Northwest retail locations by 83% (from 12 in 2019 to 2 in 2022).

Governance Achievements

• Regularly reviews evolving corporate governance best practices, changing regulatory requirements, and shareholder feedback.
• Maintains strong governance through written policies, including a Code of Business Conduct and Ethics.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to geopolitical events (e.g., suspending Russian crude oil purchases for Hawaii refinery).
• Climate change and associated regulatory changes.
• Maintaining a strong safety culture.

Mitigation Strategies

• Diversifying crude oil sources (principally from North and South America).
• Investing in renewable fuels projects and energy efficiency improvements.
• Implementing company-wide safety initiatives, including a new Safety Vision Statement and centralized Learning and Development team.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather-related risks and natural disasters

Transition Risks

• Potential legislative and regulatory actions addressing climate change

Opportunities

• Development of renewable fuels

Reporting Standards

Frameworks Used: SASB

Sustainable Products & Innovation

• Renewable diesel
• Sustainable Aviation Fuel (SAF)

Awards & Recognition

• North and South American Fuels Refinery PACE setter awards

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Safety and Security
• Social Responsibility
• Human Capital
• Governance and Ethics

Environmental Achievements

• Washington and Wyoming refineries awarded EPA Energy Star Certifications for energy efficiency improvements.
• $90 million investment in Hawaii renewable fuels production facility to produce sustainable aviation fuel (SAF) and other renewable products.
• Co-processing of soybean and canola oil in Washington refinery to produce renewable diesel (RD).

Social Achievements

• Over $970,000 contributed to charitable organizations and event sponsorships.
• Hele retail brand named 2024 Retail Team of the Year by the Retail Merchants of Hawaii.
• Billings refinery awarded the AFPM Elite Silver Award for top industry safety performance.
• Increased gender and ethnic diversity on the board of directors (as of June 30, 2024: 92% independent and 30% diverse directors).

Governance Achievements

• Strong governance structure with independent board oversight and committees (Audit, Compensation, Executive, Nominating and Corporate Governance, and Operations and Technology).

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions (implied)
• Climate change related risks (potential legislative and regulatory actions, remediation for environmental matters, operating risks, severe weather, spills, commodity price volatility).

Mitigation Strategies

• Continuous improvement of environmental performance and emission reduction strategies.
• Investment in new technologies and energy transition opportunities.
• Strong internal risk management framework with KPIs to identify and mitigate emerging risks.
• Established cybersecurity practices aligned with NIST standards.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather-related risks and natural disasters

Transition Risks

• Potential legislative and regulatory actions addressing climate change
• Market changes from evolving climate change laws and regulations

Opportunities

• Energy transition opportunities to enhance reputation and create long-term value.

Reporting Standards

Frameworks Used: SASB

Certifications: EPA Energy Star (Tacoma and Newcastle refineries)

Sustainable Products & Innovation

• Sustainable aviation fuel (SAF)
• Renewable diesel (RD)
• Renewable naphtha
• Liquified petroleum gases (LPG)
• Biodiesel

Awards & Recognition

• EPA Energy Star (Tacoma and Newcastle refineries)
• Hele 2024 Retail Team of the Year
• Billings refinery AFPM Elite Silver Award