Climate Change Data

HF Sinclair Corporation

Climate Impact & Sustainability Data (2022)

Reporting Period: 2022

Environmental Metrics

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Reduced Scope 1 and Scope 2 net emissions intensity by 52% (over the past five years ended December 31, 2023)
  • Significant investments in 3 renewable diesel projects in Artesia, NM, Cheyenne, WY and Sinclair, WY
  • Navajo refinery implemented a project to sell wastewater to upstream operators to reduce freshwater use.
  • Developed SonneNatural (100% natural plant-based products) and ENVIRON™ MV (biodegradable hydraulic oils).

Social Achievements

  • “One HF Sinclair Culture” program focusing on safety, human capital management, and community relations.
  • Commitment to a diverse and inclusive workforce, including partnerships with historically Black colleges.
  • Investment in professional development scholarships and education assistance programs.

Governance Achievements

  • Board level committees with specific oversight over ESG matters (Compensation, Environmental, Health, Safety, and Public Policy, and Nominating, Governance and Social Responsibility Committees).
  • 9 of 11 directors independent, including chair; 3 women board members; 4 racially/ethnically diverse board members.
  • Executive compensation strongly aligned with shareholders and long-term performance (including ESG metrics).

Climate Goals & Targets

Medium-term Goals:
  • Reduce Scope 1 and Scope 2 net emissions intensity by 25% by 2030

Environmental Challenges

  • Uncertainty regarding increasing societal expectations that companies address climate change and greenhouse gas emissions.
  • Risks and uncertainties with respect to the actions of competitors.
  • Effects of governmental and environmental regulations and policies.
  • Availability and cost of financing.
  • Uncertainty regarding the effects and duration of global hostilities (e.g., Russia-Ukraine war).
Mitigation Strategies
  • Established goal to reduce Scope 1 and Scope 2 net emissions intensity by 25% by 2030.
  • Investments in renewable diesel projects.
  • Water conservation initiatives.
  • Product innovation for improved fuel economy and energy efficiency.
  • Maintaining investment grade credit ratings.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

  • SonneNatural
  • ENVIRON™ MV