2018 SUSTAINABILITY REPORT - Marathon Petroleum ...
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2018 SUSTAINABILITY REPORT
Introduction | 1
Contents A Message from Our CEO
Fellow shareholders, friends and neighbors,
1 A Message from Our CEO At Marathon Petroleum Corporation, we are proud As the world’s need for reliable, affordable, plentiful
of the work we do to enhance life’s possibilities energy continues to grow, our expanded scale gives
2 About Marathon Petroleum Corporation throughout our nation and around the world. us the opportunity to create shared value with so
We provide energy and other products that are many more of our neighbors, communities and
8 Sustainability at MPC critical to millions of people’s daily lives, and fellow human beings around the world.
we are committed to doing it responsibly. That
In this report, you’ll read about how we manage,
means adhering to our values of health and safety,
12 Safety environmental stewardship, integrity, corporate
measure and continually improve our safety
performance and environmental stewardship,
citizenship and an inclusive culture. It also means
changes we are making to enhance our community
18 Integrity and Governance being transparent about our performance related
involvement, and progress we are making toward
to these important values.
ever greater diversity and inclusion. Our performance
20 Stakeholder Engagement We have published our annual Citizenship Report in these areas is top-down: driven, executed and
since becoming an independent company in 2011, monitored by our Board of Directors and Executive
22 Our People providing stakeholders like you with an in-depth Leadership Team; and bottom-up: a result of our
look at the many ways we live up to our values. thousands of employees’ enthusiasm and dedication
28 Our Community In this year’s report, renamed our Sustainability to the values that make us successful.
Report, we are bringing you an enhanced level of
Our success would not be possible without those of
accountability by using reporting standards of the
34 Environment International Petroleum Industry Environmental
you who have a stake in our company’s operations –
whether you are one of our neighbors, an employee,
Conservation Association. You will find here a more
a business partner, customer, appointed or elected
44 Renewable Energy and Products robust discussion of our corporate governance
official, or a shareholder. I thank you for your interest
and a careful focus on the processes and programs
in Marathon Petroleum Corporation, and encourage
45 Performance Data we use to manage our performance. Through this
you to read this report to learn more.
new disclosure, our objective is to provide you
with greater insight about how we work toward Sincerely,
52 Content Index (IPIECA & GRI) continual improvement.
54 Glossary We achieved a significant milestone in 2018, as
Marathon Petroleum’s strategic combination with
Andeavor expanded our operational footprint from Gary R. Heminger
coast to coast. We are now a leading integrated, Chairman and Chief Executive Officer
downstream energy company operating the nation’s
largest refining system. We are one of the largest
midstream operators in North America and have
a nationwide retail and marketing business.
2 | About MPC About MPC | 3
About Marathon Petroleum Corporation
2018 by the Numbers
ENVIRONMENTAL
STEWARDSHIP OUR PEOPLE OUR COMMUNITY SAFETY AT OUR CORE AWARDS AND RECOGNITION
educed direct and energy indirect
R Recognized by Forbes as one of
Partnered with and Reduced the number of personal safety incidents by 74% of the EPA’s ENERGY STAR
GHG emissions intensity by
America’s Best Employers contributed to 8% in 2018 across our Refining operations recognitions awarded to refineries, more than all U.S. refiners combined
2% in 2018
for Diversity local and national organizations such
as the United Way, Children’s Hospital American Fuel & Petrochemical Manufacturers (AFPM)
Reduced our criteria pollutant intensity
85% of San Antonio, American Red Cross, Elite Silver Safety Award at three of our refineries
by 10% and overall criteria Achieved a score of on the
Human Rights Campaign Foundation’s Boys & Girls Clubs of America, Girl
pollutant emissions by 7% 2018 Corporate Equality Index Scouts of the USA, Children’s Miracle Voluntary Protection Program
Network Hospitals and Ronald
McDonald House Charities Star Site designation, OSHA’s highest status,
Reduced freshwater withdrawal intensity at 18 facilities
16% since 2014
EPA ENERGY STAR
2018 and 2019
Owns and manages 1,347 acres Partner of the Year, the only refining company to
of wildlife habitat certified by the earn the award those years
Wildlife Habitat Council
4 | About MPC About MPC | 5
About Marathon Petroleum Corporation
Marathon Petroleum Corporation (MPC) is the which owns and operates retail convenience stores
largest petroleum refiner in the U.S., with more nationwide. Our 16 refineries are linked to this retail
than 3 million barrels per day of crude oil capacity and marketing system through a robust distribution
in our 16-refinery system. Our core values of health network and midstream service business. MPC’s
and safety, environmental stewardship, integrity, midstream business includes its ownership of the
corporate citizenship, and an inclusive culture help general partner and majority limited partner interests
drive the success of our fully integrated system. in MPLX LP, which owns and operates natural gas
gathering, processing and fractionation assets, as
In 2018, MPC strategically combined with another
well as crude oil and light product transportation and
independent refiner, Andeavor, which significantly
logistics infrastructure.
expanded our footprint across key markets,
enhanced our midstream footprint in the Permian Headquartered in Findlay, Ohio, our fully integrated
and Bakken basins, and created our nationwide system provides operational flexibility to move crude
retail and marketing portfolio. This strategic oil, natural gas liquids, feedstocks and petroleum-
combination has allowed us to continue our journey
of building a valued, dynamic energy company
related products efficiently through our distribution
network and midstream service businesses in the MPC At A Glance
that enhances life’s possibilities, while anchored in Gulf Coast, Mid-Continent and West Coast regions.
The largest
our core values. Today, we are the largest refining
We have a growing renewable energy portfolio, Nearly 12,000
company in the U.S., doing business through our
including our biodiesel facility in Cincinnati,
independent petroleum product
refining, marketing, retail and 16,600 miles of pipeline nationwide retail and
subsidiaries in 41 states and the District of Columbia; marketing locations
Ohio; joint-venture ownership of three Midwest midstream business in the U.S.
the Mexican states of Baja California, Sonora and
ethanol plants; ongoing conversion of one of our
Sinaloa; and with trading operations in Canada
petroleum refineries to produce renewable diesel;
and Singapore.
and our wholly owned subsidiary, Virent, that 131 years of experience Over 3 million barrels Land- and water-access
terminal facilities with
Our 12,000 retail and marketing locations include produces advanced biofuels from plant sugars and in the energy business, with roots per day of crude oil refining capacity
our branded retail outlets across the U.S. and in lignocellulosic materials. tracing back to 1887 across 16 refineries 27.3 million
Mexico, and Speedway LLC, an MPC subsidiary, barrels of capacity
A marine business that
Over 60,000 owns and operates
Natural gas processing
throughput of
regular full-time and part-time employees
23 vessels and 256 barges 7.5 billion
standard cubic feet per day
113.5 million gallons Biodiesel production capacity of
of refined products sold per day 80 million gallons per year
6 | About MPC About MPC | 7
An Integrated Business Model
Our uniquely integrated business provides us with extensive
flexibility, enabling us to meet the growth needs of the market
and respond promptly to shifts in market conditions.
®
Virent,
Inc.
REFINING AND MARKETING:
●
Our Refining system is the largest in the U.S., with more than
3 million barrels per day of throughput capacity. Our 16 refineries
are in the West Coast, Gulf Coast and Mid-Continent regions of
the U.S. and are integrated with each other via pipelines, marine
operations, transport trucks, railcars and storage terminals to
maximize operating efficiency.
●
We sell our refined products to independent retailers, wholesale MPC's refinery in Anacortes, Washington
customers and our branded jobbers within our 41-state
marketing area.
MIDSTREAM:
●
We are the general partner and majority limited partner unitholder
in MPLX LP, a midstream company that owns and operates crude oil
and light product transportation and logistics infrastructure, as well
as natural gas gathering, processing and fractionation assets.
● The transportation links that connect our refineries allow the
movement of intermediate products between refineries, terminals
and other logistics assets to optimize operations, produce higher
margin products and efficiently utilize our processing capacity.
MEXICO RETAIL:
MPC’s Sherwood natural gas processing plant in West Virginia
●
We have the nation’s second-largest company-owned and
-operated convenience store chain. We sell transportation fuels and
merchandise through convenience stores that we own and operate,
MPLX Owned and Part-Owned
Domestic Marketing Area International Marketing Area
Light Product Terminals
MPC/MPLX Pipelines(a) primarily under the Speedway brand, as well as through direct
MPC Refineries MPC/MPLX Pipelines(a) MPLX Owned Asphalt/Heavy
dealer locations, mainly under the ARCO® brand.
MPLX Refining
Oil Terminals Logistics Assets
MPC Owned and Part-Owned Renewable Fuels
Light Product Terminals
Ethanol Facility Barge Dock MPLX Gathering For more information on our operational and financial
System
MPC Owned Asphalt/Heavy
Oil Terminals
Biodiesel Facility performance in 2018, please see our 2018 Annual Report.
Cavern MPLX Owned Marine
MPC Owned and Part-Owned Facility
Marine Facility
Natural Gas
Processing Complex
Note: Illustrative representation of asset map
(a) Includes MPC/MPLX owned and operated lines, MPC/MPLX interest lines operated by others and MPC/MPLX operated lines owned by others. A Speedway store in Nashville, Tennessee
8 | Sustainability at MPC Sustainability at MPC | 9
Sustainability at MPC
ABOUT THIS REPORT ACHIEVING SUSTAINABILITY MARATHON PETROLEUM CORPORATION
This 2018 Sustainability Report, published October 2019, is THROUGH SHARED VALUE BOARD OF DIRECTORS
MPC’s eighth annual Citizenship Report and covers our safety, We view sustainability as our environmental, social and
governance, social and environmental activities, initiatives, economic responsibility. We believe that sustainability is
and performance for calendar year 2018. Last year’s Citizenship a fundamental process of shared-value creation, in which
Report covering calendar year 2017 can be found online at strategic investment and innovation help our society achieve CORPORATE
https://www.marathonpetroleum.com/Responsibility/Corporate- economic growth, environmental preservation and resource AUDIT COMPENSATION GOVERNANCE SUSTAINABILITY
Citizenship/ and Andeavor’s 2017 Sustainability Report can conservation. This shared value helps ensure the social and COMMITTEE COMMITTEE AND NOMINATING COMMITTEE
be found online at https://www.marathonpetroleum.com/content/ economic needs of future generations are met. COMMITTEE
documents/Andeavor_2017_SR_FINAL_Web.pdf. AUDIT COMMITTEE: Assists our Board in fulfilling its oversight responsibilities
BOARD OVERSIGHT
This report has been developed in accordance with the by regularly reviewing risks associated with financial and accounting matters,
AND RESPONSIBILITY as well as those related to financial reporting. In this regard, our Audit
International Petroleum Industry Environmental Conservation
Achieving shared value and ensuring we operate our business Committee monitors compliance with regulatory requirements and internal
Association (IPIECA) Sustainability Reporting Guidance. It is
in a responsible and sustainable manner is not only the control systems. Our Audit Committee also reviews the process by which
also largely informed by the Global Reporting Initiative (GRI) Enterprise Risk Management is undertaken by the company.
responsibility of our tens of thousands of employees and
Standards, which were used to guide the materiality and
business partners through their daily decisions and actions, it
stakeholder engagement process and narrative development COMPENSATION COMMITTEE: Assists the Board with risk oversight
also comes from the top. Oversight by our Board of Directors
of our management approach. through its review of compensation programs to help ensure such programs
supports strong corporate governance. In late 2018, our
do not encourage excessive risk-taking. The Compensation Committee
The information and data in this report covers all MPC and Board established a board-level Sustainability Committee.
reviews base compensation levels, incentive compensation and succession
legacy Andeavor entities, including Andeavor Logistics LP, This committee oversees our health, environmental, safety plans to confirm the company has appropriate practices in place to support
Speedway LLC and MPLX LP for the calendar year 2018, and security policies, plans, programs and practices, and the retention and development of the employees necessary to achieve the
unless otherwise indicated. Data included has been reviewed reviews our performance and public reporting on these company’s business goals and objectives.
by MPC’s Internal Audit organization. matters. The committee reviews our annual Sustainability
Report and our Perspectives on Climate-Related Scenarios CORPORATE GOVERNANCE AND NOMINATING COMMITTEE: Develops and
Through our Perspectives on Climate-Related Scenarios
report, and oversees our management team’s efforts on oversees our Corporate Governance Principles and reviews the qualifications
report, we continue to provide a risk assessment that and makeup of the Board and candidates for the Board. Assists the Board
contingency planning, emergency response activities and
follows guidelines set forth by the Financial Stability Board’s with risk oversight by reviewing shareholder communications and other
stakeholder engagement. It also provides oversight on a
Task Force on Climate-Related Financial Disclosure (TCFD). initiatives related to ESG issues.
variety of environment, social and governance (ESG) topics.
Our third Perspectives report is available on our website.
More information on our Board’s Sustainability Committee SUSTAINABILITY COMMITTEE: Reviews the company’s strategy on climate
We encourage open dialogue and any feedback that can
and its responsibilities, as well as our executive leadership change and other ESG-related issues. Assists the Board in fulfilling its risk
help to inform and improve our immediate and long-term oversight responsibilities in matters relating to the health, environment,
committees, can be found in our 2019 Proxy Statement and
sustainability performance. The contact for this report can safety and security of personnel and physical assets, and oversees
2019 Perspectives on Climate-Related Scenarios report.
be reached at sustainability@marathonpetroleum.com. our Perspectives on Climate-Related Scenarios report and our annual
Sustainability Report.
An MPC wildlife habitat near its
refinery in Robinson, Illinois, certified
by the Wildlife Habitat Council
10 | Sustainability at MPC Sustainability at MPC | 11
REGULATION AND COMPLIANCE STAKEHOLDER ENGAGEMENT AND expectations and business. We also conducted more information on our approach to stakeholder
We are required to comply with regulations After more than 15 years of continual MATERIALITY ASSESSMENT* industry and peer benchmarking to assess the engagement, see Pages 20 and 21 of this report.
governing safety, environment, workers’ rights, improvement under the Responsible Care® We undertook an in-depth materiality assessment sustainability strategies, priorities and actions
equal employment opportunity, human rights Management System, MPC adopted the taken by our industry; reviewed non-governmental We then gathered feedback via in-depth surveys
to identify the environmental, social and governance
and social justice. RC14001® certification process in 2018 to further organization (NGO) materials and advocacy that asked stakeholders to indicate each topic’s
topics that were most relevant to our company
enhance and promote sustainable practices campaigns; media coverage; trends in the regulatory level of priority. Survey results, along with an
Our operations, assets and processes require and our stakeholders. That materiality assessment,
in our operations. RC14001 is a management environment; and shareholder feedback from our internal assessment to better understand each
specialized knowledge, advanced operating guided by the Global Reporting Initiative (GRI)
system that combines Responsible Care® with engagement initiatives. This external research helped topic’s overall impact, were used to develop a
procedures and a commitment to excellence Standards, informs the content of this report and
the globally recognized ISO14001 environmental inform the broader sustainability context in which prioritized list. High-priority and moderate-priority
to ensure safety and maximize environmental our future sustainability strategy development.
management system, established by the we operate. topics are listed below.
stewardship. Our approach to sustainability is The outcome of this assessment was an enhanced
International Organization for Standardization
defined by not only the work we do to conform understanding of the topics most significant to our VALIDATION
(ISO). ISO is an independent, nongovernmental PRIORITIZATION
and comply with all laws and regulations, but business, the environment and society. We reviewed, approved and validated our final
international body that provides specifications The next step in our materiality assessment process
also by our drive to meet or exceed our own prioritization of the material topics. Each topic
for products, services and systems that ensure IDENTIFICATION OF TOPICS was to engage more than 1,000 internal and external
rigorous environmental and safety targets. is included in this report and can be found in
quality, safety and efficiency. RC14001 provides stakeholders to understand key focus areas and their
We reviewed source documents, such as business
us with a management system that integrates priority across the economic, environmental and our IPIECA (International Petroleum Industry
DRIVING SUSTAINABILITY THROUGH plans and strategies, employee communications,
Environmental Conservation Association) and
health, environmental stewardship, safety and social aspects of our business. External stakeholders
OPERATIONAL EXCELLENCE external communications, and materials from both
Global Reporting Initiative (GRI) Index.
security and is third-party audited to ensure included community residents, Community Advisory
The combination of MPC and Andeavor in MPC and Andeavor, to assess the broad landscape
compliance and continual improvement. Panels (CAPs), advocacy organizations, emergency
2018 presented an unprecedented opportunity of topics affecting our industry, society, stakeholder
Throughout 2018, we worked to increase responders, elected officials and regulators. For
to integrate and combine two dynamic legacy
management systems: MPC’s RC14001® (Health, the number of sites certified to RC14001. Six
Environment, Safety and Security Management refineries, Marathon Pipe Line and our Terminal, HIGH Air Emissions MODERATE Community and Stakeholder Engagement
System) and Andeavor’s Operational Transport and Rail organization have been PRIORITY Anti-corruption Practices PRIORITY Endangered Species and Ecosystems
Excellence Management System (OEMS). This certified to the standard. TOPICS TOPICS
Board and Executive Leadership Diversity Employee and CEO Compensation
combination helps to ensure best practices
for continual improvement of our operations Climate-related Risks Philanthropic Investment and
and the availability, utilization, profitability Employee Volunteerism
Ethical Business Practices
and reliability of our assets. It also supports Sustainability Oversight
Native Peoples Engagement
our ability to invest in communities, ensure
Waste Minimization and Handling
risk governance, preserve the environment Oil Spill Prevention
and conserve natural resources. Water Use and Wastewater Management
Process Safety
Worker Safety
Workforce Diversity, Inclusion
and Equal Opportunity
A view of MPC’s refinery in
Kenai, Alaska *Distinct from concepts of materiality in financial reporting and under securities laws, a sustainability materiality assessment seeks to consider
impacts an organization may have on the broader economy, environment and society, and factors viewed as important to stakeholders.
12 | Safety Safety | 13
Safety Personal Safety
MPC Refining OSHA Recordable Rate* MPLX OSHA Recordable Rate
The safety and well-being of our employees and Our personal safety standards comply with and often exceed local, state and federal regulations. Our (incidents/200,000 hours) (incidents/200,000 hours)
contractors is our top priority and a core value. employees and contractors are trained on our standards, and we conduct frequent audits and quality
0.40 2.4
Our aim is to have an accident-free, incident-free assurance visits to ensure compliance. Our safety culture is one that empowers everyone to create and 2014 0.7 2014 0.66
workplace to ensure that everyone goes home safely maintain a safe and healthy workplace.
every day. Therefore, we continuously evaluate and 2015 0.36 0.6 2015 0.82 1.9
In 2018, we achieved our lowest combined OSHA recordable incident rate across our Refining operations
improve our personal and process safety procedures
since 2014: 0.27 per 200,000 hours worked. Our Midstream and Retail segment rates increased to 0.76
and diligently maintain our assets to reduce the risk 2016 0.34 0.6 2016 0.63 1.5
and 1.99, respectively, while both remained below industry average incident rates. We continue to drive
of incidents. We also foster a strong safety culture
for ongoing safety improvements in our Midstream and Retail segments, with a goal of zero incidents.
across our company to ensure that our people are 2017 0.29 0.7 2017 0.64 1.6
working toward this goal every day. LIFE CRITICAL STANDARDS
Our corporate approach to managing health and implementation plans specific to their 2018 0.27 2018 0.76
SAFETY MANAGEMENT
safety is designed to provide high-level requirements facilities, processes and equipment. All 0.0 0.2 0.4 0.6 0.8 0.0 0.5 1.0 1.5 2.0 2.5
Our Board’s Sustainability Committee oversees
for the development of specific personal safety of our standards are based on industry MPC Refining U.S. Refining avg** MPLX U.S. Midstream avg***
matters relating to the health, safety and security
standards for various operating organizations and best practices and enforced through The OSHA Recordable Incident Rate is the number of incidents per 200,000 hours of work.
of our employees and assets. Additionally, an
functions across our enterprise. We have extensive comprehensive training, audits and
executive Health, Environment, Safety and Security
safety and environmental policies and procedures, engagement from our leadership teams
(HES&S) Management Committee meets quarterly
including our Life Critical Standards, which address and internal subject matter experts. We
and is responsible for evaluating performance
the personal safety hazards that can result in serious, also ensure the standards are regularly
and overseeing key health- and safety-related
or even fatal, injuries if not properly managed. Our evaluated and updated.
corporate policies. To read more about our HES&S
Life Critical Standards include:
management approach and systems, see Page 10 of We enforce an Industrial Hygiene Standard
this Report. ● OT WORK: addresses work that introduces ignition sources,
H designed to address any potential exposures
such as welding, torching and grinding in close proximity to to chemical, physical, biological and other
2018 was a year of significant growth and change for flammable materials.
hazards. The standard outlines controls,
MPC as we strategically combined with Andeavor. ● ONFINED SPACE ENTRY: addresses work that requires
C protective equipment and monitoring
We worked diligently to apply safety standards, personnel to enter confined spaces such as tanks and
procedures to reduce the exposure risk to
expectations and consistent safety oversight across reactor vessels.
our people.
the newly combined organization. As part of our ● NERGY ISOLATION: ensures equipment is safe to perform
E
strategic combination, we also conducted thorough invasive work or maintenance by ensuring employees are In addition to our training programs, we
protected from the unexpected re-energization or release of
program and field assessments with defined plans for also conduct field and program audits to
stored energy.
bringing the best of our two companies’ standards assess our compliance with all relevant
LEVATED WORK: covers work that may be carried out
● E internal standards and with the RC14001®
together and establishing integration expectations. at heights, including scaffolding, ladders and aerial-work
platforms. Management System, which verifies that MPC employees at the
our internal management systems are of a company’s refinery in
All of our operating organizations adopt the Life high caliber and being effectively executed.
Kenai, Alaska
MPC employee at the
Critical Standards that are relevant to their operations For more information on RC14001 at MPC,
company’s refinery in and the type of work they perform, as well as detailed see Page 10 of this Report.
*Data includes employees and contractors. Includes MPC and Andeavor performance.
St. Paul Park, Minnesota **Based on U.S. Bureau of Labor Statistics data
***Based on U.S. Bureau of Labor Statistics and Gas Processors Association data
14 | Safety Safety | 15
Retail Safety
OUR CULTURE OF SAFETY PROMOTING EMPLOYEE WELLNESS Our Retail segment, including our subsidiary
Promoting a culture of safety requires an Our approach to protecting our people goes well Speedway LLC, is a large component of our business,
environment where employees feel comfortable beyond safety. We know that active and engaged with nearly 4,000 convenience stores and more than
reporting safety concerns and potential hazards. employees must also be mentally and physically 40,000 Retail employees nationwide in 2018. The
That’s why we impose strict policies prohibiting healthy in order to do their best work in a safe and environment in which our Retail employees work is
retaliation for good-faith reporting. Each of our meaningful way. Our Health and Wellness program much different than that of Refining and Midstream,
business segments has specifically designed provides all employees across our company with and therefore presents a different set of workplace
functions for reporting hazards and improvement programs and information to promote healthier hazards. As a result, we track our Retail safety data
suggestions so that employees have an lifestyles. In addition to wellness challenges and and management approach separately so that
anonymous channel for sharing comments and nutrition and exercise tips, the program also we can analyze performance and make necessary
concerns. Such programs are also important to includes a cash stipend for completing a health
SAFETY RECOGNITION improvements to protect our Retail employees.
ensure we have employee feedback and input assessment and an annual preventive physical, Our Dickinson, North Dakota;
Just like other aspects of our business, we strive
when it comes to strengthening our management and other incentives. Essential to the program are Martinez, California; and Salt
for zero injuries in our Retail business so that our
approach and safety standards. In the most our Wellness Champions, who are located across Lake City, Utah, refineries
employees can go home safely every day.
recent companywide employee survey, 92% of our facilities and offices to promote wellness were among the recipients of
our employees agreed or strongly agreed that we among employees. the Elite Silver Safety Award A dedicated safety expert is responsible for training
have a favorable health, environment, safety and from the American Fuel & and certifications and serves as a subject matter
security culture. Petrochemical Manufacturers expert in each region. Our district managers attend
specific safety
Association. The award
training sessions Retail OSHA Recordable Rate
recognizes the superior (incidents/200,000 hours)
as part of a District
Working closely with others in our By the end of 2018, 2018 safety performance
COLLABORATING industry and regulators, such as 18 of our sites, of thetop 5% of
Manager Training
2014 2.36 2.3
WITH OSHA
program. We have
OSHA, can help us all to create a safer including our petroleum refining and also established
workplace. OSHA’s Voluntary Protection corporate headquarters, various petrochemical facilities. Safety Captains
2015 2.03 2.8
Program (VPP) recognizes employers refineries, terminals and MPLX at our stores who
Our Dickinson refinery
and workers in private industry and locations, have achieved receive in-depth 2016 2.08 2.9
has won this award for
federal agencies that have exemplary VPP Star, two consecutive years.
training and have
occupational safety and health status. Additional sites, specific safety 2017 1.81 2
performance and programs. To achieve are actively pursuing VPP Star duties, including
VPP status, applicants must complete status and are in various stages the sharing and 2018 1.99
a rigorous application and inspection of the process. We have found that promoting of safety 0 1 2 3
process by OSHA that can take years. our VPP sites experience lower key learnings. MPC Retail
There are three levels of designation: injury rates and benefit from an
U.S. gasoline retail avg*
Demonstration, Merit and Star, which is Data includes Andeavor Retail
enhanced safety culture.
the highest level. *Based on U.S. Bureau of Employees of MPC
Labor Statistics data subsidiary Speedway LLC
16 | Safety Safety | 17
Process Safety Transportation Safety
Process safety means maintaining pipes, tanks, Petrochemical Industries. This practice includes Our commitment to safety extends completed the training, resulting in
PROCESS SAFETY to our transportation, storage and increased emergency preparedness in
processing units, valves and other hardware so reviewing both leading and lagging process safety
INDUSTRY
that they work as intended, keeping materials metrics to better gauge our company’s performance distribution businesses, including the public sector.
LEADERSHIP
contained and our employees and communities safe. and developing process safety improvement plans our pipeline, terminals and storage
In 2018, our Our Marine Transportation
We proactively manage our process safety risk by based on the data. Current areas of focus include: assets as well as our marine, truck
Marathon Pipe Line organization provides transportation
following industry best practices and continuously and rail fleets. We utilize industry
● echanical integrity, especially reducing loss of primary
M subsidiary worked services for crude oil, products and
improving our process safety management systems. standards, evaluate and implement
containment from small-bore piping other materials. With 23 towing
Among these systems are: collaboratively improvements to our systems, and
● Improving human reliability through human-factors analysis vessels and 256 barges operating in
with the American continually train employees and
● ECHANICAL INTEGRITY PROGRAM: Ensures equipment
M and elimination of error traps our rivers, lakes and oceans, we know
Petroleum Institute contractors on best practices.
is proactively maintained in a safe and reliable manner to that ensuring we are operating safely
prevent operational failures that could impact the business, In 2018, we worked toward integrating MPC’s and (API) to establish An important component of and without incident is paramount.
employees, contractors or the public. legacy Andeavor’s process safety management renewed process managing safe and responsible
● ANAGEMENT OF CHANGE: Ensures changes in equipment,
M systems. As part of the effort, we conducted In 2018, the U.S. Coast Guard
safety metrics for the transport is leveraging technology
operating parameters, materials and procedures are properly assessments to better determine where implemented additional towing
reviewed so that concerns related to safety and health, pipeline industry. The and data. This includes using fleet
improvements could be made. Other efforts vessel safety regulations for inland
technical limitations and equipment design are assessed and work defined criteria statistics to push safe driving
addressed prior to implementation.
throughout the marine operators, which established
Refining Process Safety Event (PSE) Rate to drive continual improvements, and using monitors
year included new inspection standards and also
● SAFE WORK PRACTICES: Provide guidance for various (events/200,000 hours)
improvement, and other forms of hands-free
evaluating, specified a safety management
safety-related tasks, including work permitting, hot work, technology to support response
energy isolation, confined space entry and opening process improving, modified reporting system requirement. To comply, we
2014 efforts if and when an incident should
equipment or piping. The guidance is developed by each optimizing criteria and implemented an existing Towing
operating organization to ensure it is applicable to their occur while an individual is in transit.
and replacing recognized leaders Safety Management System (TSMS),
operations.
equipment 2015 throughout our Training is also an important which has been certified with the
● PERATING PROCEDURES: Provide clear instructions on
O component of our approach to American Waterways Operators’
throughout our industry.
how to operate covered process equipment including
startup, normal and abnormal operations, emergency enterprise. We transportation safety. In 2018, our Responsible Carrier Program since
2016
conditions and shutdown. The procedures include also continued Transport group developed and 1998. We also provided extensive
considerations such as health and safety, operating limits to fine-tune distributed a video series titled training to our personnel as part of
and safety systems involved in the process.
and update 2017 “Responding to Fuel Transport the new system rollout and now meet
In addition to these systems, we also conduct our approach to Emergencies.” The training highlights the Coast Guard’s requirement for
rigorous process safety assessments to identify risks audits and training. the normal operation of a fuel the first-year implementation target.
2018
and implement the appropriate safeguards, such as transport, key equipment design Through these efforts, we are well-
alarms, automated shutoff systems and relief devices. 0.00 0.05 0.10 0.15 0.20 0.25 and response tactics. The training positioned to fully comply with the
has been provided to key third-party TSMS requirements by 2022. Our
We classify process safety incidents using the Tier 1 PSE Tier 2 PSE
first responders, shared with others Marine Transportation organization
guidelines set forth by the American Petroleum PSEs are unplanned or uncontrolled releases of a
material from a process. The PSE rate is the count in our industry and published for remains one of the safest among
Institute (API) and track process safety consistent of events per 200,000 hours of work. Tier 1 PSEs Pipeline and storage infrastructure
at an inland marine facility in free public use. Since its publication, inland marine operators.
with API’s Recommended Practices 754, Process are the most serious type. PSE rates for Andeavor
Refining have been included in this chart, including Wood River, Illinois, owned nearly 7,000 external first responders
Safety Performance Indicators for the Refining and years prior to our strategic combination. by MPLX, a master limited An MPC transport driver based
partnership sponsored by MPC in Catlettsburg, Kentucky18 | Integrity and Governance Integrity and Governance | 19
Integrity and Governance
BUSINESS ETHICS GOVERNANCE AND BOARD INTEGRITY HELPLINE WHISTLEBLOWING
OF DIRECTORS Code of While all our employees, contractors and vendors Our Whistleblowing as to Accounting Matters Policy
Business
Our commitment to corporate responsibility is utmost importance to us and our business. All
essential to the success of our business and our Strong corporate governance is critical to our MPC employees must follow our Code, which are encouraged to speak with their immediate establishes procedures for the receipt, retention and
ability to create shared value for our stakeholders. long-term business success. MPC’s Board of defines expectations for ethical decision-making, Conduct supervisors if they have questions or concerns treatment of complaints received by the company
At MPC, we have laid a foundation for principled Directors has ultimate oversight over the accountability and responsibility. Commitment to Integrity related to ethics and the Code, the Integrity Helpline regarding accounting, internal controls or auditing
business decisions based on respect, dignity and management of our business. The Board is is an additional resource to request advice, discuss matters and provides for the confidential, anonymous
All salaried MPC employees are required to
honesty, and with a focus on our core values of comprised of 12 directors, 10 of whom are workplace behavior or ethics, or report potentially submission of concerns regarding questionable
regularly complete Code of Business Conduct
health and safety, environmental stewardship, independent. The independent directors have unethical acts on a named or anonymous basis. accounting matters.
training and an annual Code certification. This
integrity, corporate citizenship and an inclusive elected the Chairman and CEO and the Lead We investigate every allegation shared with the
certification includes an ethics questionnaire CONFLICTS OF INTEREST
culture. These values set high expectations for each Director to lead the Board. The Board maintains Integrity Helpline and take appropriate action,
and provides the opportunity for employees Our Conflicts of Interest Policy provides guidance on
individual across our organization and help to ensure four committees: Audit, Compensation, such as discipline where warranted, or a change in
to disclose any issues that could be a violation recognizing and resolving real or apparent conflicts
trust among our business partners, shareholders and Corporate Governance and Nominating, and policy or procedure, based on the outcome of the
of the Code. In 2018, 100% of all salaried MPC of interest. This policy acknowledges that business
the communities where we work and live. Sustainability. The roles of these committees investigation. We maintain a firm no-retaliation policy
employees completed the annual certification. decisions on behalf of the company must be made
are discussed in more detail on Page 9 and in and will never permit a good-faith filing to be a cause
For accountability, we regularly report on the
OUR CORE VALUES our 2019 Proxy Statement. for disciplinary action. To preserve the quality and
through the exercise of independent judgment in the
ethics and compliance program to the Audit company’s best interest and not influenced by the
Our long-established core values are vital to our consistency of the Integrity Helpline, we conduct an
Our Board of Directors, as a whole, possesses a Committee of the Board of Directors. personal interests of decision makers.
financial performance and relationships with annual audit in which the helpline cases are subject
combination of the skills, professional experience,
stakeholders. Under the guidance and supervision of Our suppliers, vendors, contractors and business to review for practices and outcomes.
our Board of Directors, we pursue the highest standards
and diversity of backgrounds to ensure an
partners are expected to comply with the Code, HUMAN RIGHTS
effective mix of perspectives. The average tenure MPC respects the human, cultural and legal rights of
of corporate responsibility by embedding these core
of our Board members is 3.7 years, and 33% of
as well as all applicable laws, rules and regulations. ANTI-CORRUPTION
values into our policies, practices and programs. We provide to our business partners information all individuals and communities. This commitment
the directors are women or ethnic minorities. Implementing strong anti-corruption policies and
that articulates the Code; guidelines regarding extends to the fair treatment and meaningful
HEALTH AND INTEGRITY INCLUSIVE Most of our directors have senior corporate protocols is critical to our license to operate. As
conflicts of interest, meals, gifts and entertainment; involvement of all peoples, including indigenous
SAFETY We uphold the CULTURE leadership, strategic planning, risk management, outlined in our Code of Business Conduct and our
and access to our Integrity Helpline. We also expect peoples, regardless of race, color, national origin,
We have the highest highest standards of We value diversity industry, operations and financial experience, and Anti-Corruption Policy, we exercise a zero-tolerance
them to support effective compliance programs in sexual orientation, gender or income level. Human
regard for the health business ethics and and strive to
all have a background in public company board policy for bribes in any form and require compliance
their own organizations. rights are also an important focus of our industry
and safety of our integrity, and strive for provide our with all applicable laws regarding bribery and
employees, contractors transparency in all of employees with
service. More information about our Board and and help guide how we work with our employees,
In addition to the Code of Business Conduct, we corruption, including the U.S. Foreign Corrupt
and neighboring our operations. a collaborative, each director’s qualifications can be found in our contractors and community members.
have adopted a Code of Ethics for Senior Financial Practices Act.
communities. supportive and 2019 Proxy Statement. More information about
CORPORATE inclusive work Officers, including our CEO, CFO, controller, We require compliance with all applicable laws
the diversity of our Board can be found in the Employees whose job responsibilities warrant, are
ENVIRONMENTAL CITIZENSHIP environment where and regulations aimed at upholding the rights and
STEWARDSHIP People section of this report on Page 24. treasurer and other leaders performing similar roles. required to complete additional comprehensive
We work to make a they can maximize dignity of all peoples and have invested resources
We are committed positive difference in This separate Code of Ethics affirms the principle anti-corruption training. In 2018, this training was
their full potential and programming so that all our employees and
to minimizing our the communities for personal and
that the honesty, integrity and sound judgment delivered to 100% of those employees targeted for
COMPLIANCE AND ETHICS AT MPC contractors feel respected when working with MPC.
environmental impact where we have the business success. of our senior executives with responsibility for additional training. We will continue to evaluate and
and continually look privilege to operate. Conducting business with the highest standards preparation and certification of our financial evolve our policies and procedures as necessary to
for ways to reduce
of integrity and ethical conduct, as guided statements is essential to the proper functioning meet our transforming needs and circumstances.
our footprint.
by our Code of Business Conduct, is of the and success of our company.20 | Stakeholder Engagement Stakeholder Engagement | 21
Stakeholder Engagement
POLITICAL ENGAGEMENT AND ADVOCACY STAKEHOLDER ENGAGEMENT
Our business is heavily regulated by federal, state and local Many trade associations actively engage in lobbying on We recognize the importance of positive, from the community, which can include We continue to develop new policies and
governments. As a result, it is our responsibility to provide issues that impact their respective members. Through our meaningful interactions with a broad spectrum of teachers, retirees, business owners, elected working groups aimed at building and sustaining
information and advocate for sound federal, state and participation in trade associations, we seek to champion our stakeholders and they are central to creating officials, residents who live near our facilities, mutually beneficial relationships with all tribes
local policies that enable us to continue providing affordable, legislative solutions that are in the best interests of the shared value. Our approach to stakeholder community organizers and other interested within our operational footprint to increase
reliable transportation fuels and other products to the company and the many stakeholders we serve. We believe it engagement includes building support for business parties, depending on the community. shared value between the company and native
communities we serve. is important to be engaged with these organizations so our operations, fostering strong community ties so communities. As part of our commitment to
Each CAP meets on a regular basis to learn more
positions on issues of importance to the company can be that we can maximize our positive impacts, and this process, we engage third-party consultants
We engage with the political process in several ways, including about key activities within their local refinery
expressed. Our senior management annually reviews our trade maintaining continuous dialogue with community to help us develop programs to educate our
lobbying, grassroots activity, issue advocacy, participation in and other community news. At each meeting, a
association memberships and assesses the effectiveness of leaders and representatives where we operate. employees about native communities and create
trade associations, supporting an active employee political member of the refinery leadership team provides
and continued participation in the respective groups and the relationship-building opportunities.
action committee (PAC) and, where lawful, the direct support Our stakeholders include employees, investors, an update to community members, detailing
utility of any new memberships. We pride ourselves on taking
of political candidates and ballot issues. We report our total contractors, customers, suppliers, business the facility’s safety and environmental
an active role in our trade associations and have executives,
PAC and corporate contributions on a state and federal level partners, communities, Community Advisory performance and providing relevant updates
technical experts and other personnel serving in various
as required by law and, in the interest of good governance Panels (CAPs), advocacy organizations, emergency on significant projects. Most importantly, the
leadership and supporting roles within such groups. We
and transparency, publish this information on our Political responders, elected officials and regulators. CAPs provide us insight into activities and
recognize that viewpoints of other trade association members
Engagement and Disclosure website. Each group is critical to our broader, overarching issues within our communities and identify
may differ from our own. When this occurs, we seek to work
Because we believe participation in the political process is with the association membership to promote reasonable stakeholder engagement strategy. We achieve ways that we can further enhance our
vital to a free and democratic society, we encourage our compromise. However, we do not control the position that any shared value by fostering open communications engagements where we live and work.
employees to exercise their right to engage in political activities trade association may take on any particular issue. with these groups, listening to their diverse
While most of our CAPs are dedicated
of their choosing. For more information on our political perspectives, forging partnerships, responding
In 2018, annual dues greater than $50,000 incurred by only to our facilities, some CAPs in more
engagement philosophy, trade association memberships to concerns and making positive, strategic
MPC for national trade associations totaled $14.8 million, industrialized areas include industry partners
and lobbying disclosures, visit our Political Engagement and investments.
of which approximately $1.1 million (7%) was attributable and peers. These combined panels offer
Disclosure website here: https://www.marathonpetroleum.com/ We will continue to evolve, expand and grow our opportunities for community members to
to federal lobbying efforts and approximately $6.5 million
Responsibility/Political-Engagement-and-Disclosure/. approach to stakeholder engagement to meet hear from, and provide feedback to, the
(44%) was attributable to state and grassroots lobbying and
broad advertising communications designed to generally the changing needs of our company and our broader industry.
TRADE ASSOCIATIONS
promote the energy industry and educate consumers. stakeholders. In 2018, following the acquisition
Like most large companies, we are active in trade associations
Approximately $7.2 million (49%) of MPC payments made to of Andeavor, we engaged with new groups in WORKING WITH NATIVE
and similar groups at the national, state and local levels. We
national trade associations in 2018 was attributable to tax- the areas of the country where our operations COMMUNITIES
believe participation in these associations is important to the Our acquisition of Andeavor expanded our
deductible, program-related activities such as training and the have expanded.
company’s role as an industry leader and active member of the operations across the U.S. and increased
establishment of industry standards. A list of trade associations
business communities in which we operate. These associations COMMUNITY ADVISORY PANELS (CAPs)
to which we paid dues at or above $50,000 per year, and which our interactions with native communities
engage in many activities for the benefit of their members,
may engage in lobbying activities, is available on our website: Most MPC refineries convene independent groups – a key stakeholder group for MPC. Strong
including encouraging industry standards among member
https://www.marathonpetroleum.com/Responsibility/Political- of local stakeholders through CAPs to formalize partnerships with these communities are
companies.
Engagement-and-Disclosure/. engagement with local community leaders and critical to our success, and we strive to
residents. CAPs are made up of representatives respect all tribal rights and traditions.22 | Our People Our People | 23
Our People
Our people are the foundation of our success, 2018 AWARDS AND RECOGNITION Forbes America’s Human Rights Campaign Forbes Top Supporter of
and we strive to continue cultivating a strong Best Employers for Diversity Foundation’s Corporate World’s Historically Black Colleges
For many years, we have promoted greater awareness
Best and Universities
workplace culture grounded in our core values. “We need diverse of how valuing all perspectives leads to better business Equality Index Score: Employers – U.S. Black
85
This has a direct impact on employee engagement, perspectives and decisions – for our employees, shareholders, business Engineer
Information
enhancement and satisfaction, and is essential to our partners and communities. We are proud to be recognized
recruitment, retention and development efforts. Our
ideas to continue our by external organizations for our efforts and progress, and
Technology
Magazine
employees help us champion a workplace that allows success, to create we are excited about our plans to keep improving.
each person to maximize their full potential and solutions where we
encourages them to seek the career opportunities WORKFORCE PROFILE
they desire. We welcome new ideas, invest in our
face challenges and to
people, and work to foster a collaborative and shape our future. Every Total Workforce
(60,350 employees)
inclusive team environment. day we work to create
an environment where
people feel valued for 46% 31%
who they are and what
they do and inspired
by the opportunities women racial/ethnic minority groups
we have to positively Workforce Excluding Speedway
impact people’s lives.” (20,120 employees)
Fiona C. Laird
Chief Human Resources Officer
19% 22%
women racial/ethnic minority groups
23%
35%
42%
Baby Boomers Generation X Millennials24 | Our People Our People | 25
A STRATEGIC APPROACH DEVELOPING DIVERSE LEADERS
Our combination with Andeavor presented a critical opportunity to build upon our D&I efforts as our As a high school senior, Tracie
Board of Directors Officers Senior Management*
workforce expanded. Following the merger, we immediately enhanced our D&I strategy and assessed McCall was awarded an
engineering scholarship by
existing tactics for alignment and improvement opportunities. Our new, more focused strategy is built
Ashland Inc., a company
on three pillars: building awareness, increasing representation and ensuring success. Underlying each that later became part of
17% 25% 21% 3% 15% 9% pillar is a process for accountability and measurement. MPC. After graduating
from the University of
Kentucky, she joined our
Building Awareness Catlettsburg, Kentucky,
MPC employees speak at a Building awareness of what makes us different and unique is In 2018, we continued our sponsorships of Minority Bridge refinery. Starting as
women racial/ethnic women racial/ethnic women racial/ethnic
women’s forum held at the the first step of our strategy. We regularly host D&I workshops, Programs at five universities, and 18 of our intern/co-op a young engineer, Tracie
minority groups minority groups minority groups
company headquarters in employee panels and activities, including more than 80 in the positions were filled by students from these programs. took advantage of MPC’s
*Excludes Speedway personal and professional
Findlay, Ohio legacy MPC organization alone in 2018. For example, we hosted
a dialogue on race during Black History Month and one on ● Louisiana State University – Summer Scholars development classes, including
DIVERSITY & INCLUSION LEADERSHIP DIVERSITY gender in the workplace during Women’s History Month. ● ichigan State University – Engineering and Science Success
M leadership development programs and
Academy (ESSA) courses enhancing commercial, communication
We recognize that an inclusive culture Our commitment to a diverse and inclusive The daily contributions and performance of We also developed and introduced three new diversity-focused
and presentation skills.
makes us a better company and ensures trainings in 2018. These included a training on Diversity of ● orth Carolina A&T State University – Helping Orient
N
workplace starts at the top and is a priority for our divisions and departments are led by our
Thought to help leaders better understand how to practice Minorities to Engineering (HOME) Tracie applied those skills to excel in several roles at
better results for our business. In 1999, our 12-member Board of Directors. In January talented Senior Management group. These 149 inclusion and one on avoiding unconscious bias in the hiring MPC, including process design engineer, technical
we established our Diversity and Inclusion leaders are among our top four pay grades below ● he Ohio State University – Pre First-Year Academic and
T
2018, the Board adopted an amendment to our process. Nearly 300 leaders attended these courses.
Career Engagement (PREFACE)
buyer, quality professional and petrochemicals
(D&I) program based on key insights and Corporate Governance Principles to expressly officer level, and we actively develop this team To celebrate MPC’s D&I month in November, we hosted three- manager at several of our U.S. locations. She has
learnings from the diverse communities time NBA champion Bruce Bowen for a presentation webcast to
● University of Cincinnati – Emerging Ethnic Engineers (E3) now returned to Catlettsburg as the Product Control
affirm its commitment to seeking diverse director as potential internal successor candidates for Manager, leading a team of more than 120.
where we operate and the people who the whole company. Bowen discussed the importance of coming
candidates, and through our combination with officer-level positions. together as a team to achieve success, especially during times Ensuring Success
come to work for us each day. “MPC has afforded me career opportunities and
Andeavor, we increased the number of women on As part of our commitment to diversity and of change – a message especially relevant as we worked to We believe our long-term success is fueled both by fostering the ability to grow in ways that I couldn’t imagine,”
our Board. And, 50% of our Board committee chair integrate thousands of employees from Andeavor. inclusion at our worksites as well as in the communities where explains Tracie. “I’ve been able to parlay those
Today, our D&I program – led by our facilitating equal opportunities among our senior we live and work. We conduct community outreach and
positions are now held by individuals from typically Moving into 2019, we plan to relaunch our Employee Networks opportunities into so many unique career paths.
officer-level Diversity Committee and management and officer ranks, in the spring of participate in community-led diversity celebrations and The company gives employees the opportunity and
underrepresented groups. companywide, creating six employee-led teams and chapters
managed by our D&I Office – focuses 2018, we implemented balanced slates during educational events to help build awareness outside our doors. platform to grow, and I’m grateful for the support
dedicated to supporting, mentoring and helping to advance
on equipping leaders and employees to Beyond the Board, we strive to reflect diverse the hiring process for posted positions in our specific diverse populations. In 2018, our offices and field locations participated in a number and preparation I’ve received.”
practice inclusive behaviors; creating of local events supporting the diverse backgrounds of their
backgrounds, experiences and perspectives top six non-officer pay grades. This means we Increasing Representation communities. A few include Dorr Street Live in Northwest Ohio
As part of our efforts to encourage other women and
awareness of how our differences benefit strive to consider at least one qualified individual employees with diverse racial/ethnic backgrounds to
at all levels of leadership within the company. We actively work to increase the representation of qualified (an urban festival celebrating African-American heritage); a Martin
seek leadership roles, we have created and hosted
each other, the company and our many Our Officer team, composed of our most senior from racial/ethnic minority groups or one female, women, those from racial/ethnic minority groups, military Luther King Day march and Diwali Festival in Texas; and several
a wide range of D&I activities, including an annual
stakeholders; and tracking our progress. veterans and other diverse individuals in our workforce through Pride events with the LGBTQ+ community, including a Pride picnic
company leaders, is responsible for day-to- either an internal or external candidate, in the D&I month and worksite-based teams, to nurture a
targeted external recruitment efforts, military recruitment in Kentucky.
We also enforce Human Resource policies day leadership of MPC’s business and strategic final candidate pool for these job openings. culture of belonging.
activities and on-campus efforts. In 2018, we also partnered with the Findlay-Hancock County
to protect and support employees, such direction. In 2018, we expanded this highly “From a career perspective, employees want to have
One example is our ongoing involvement with Minority Chamber of Commerce to lead the formation of the Community
as anti-discrimination, anti-harassment, qualified team to 29 individuals as part of our Inclusion Coalition, a coalition of local businesses and civic career fulfillment and feel like they belong,” Tracie
Bridge Programs to build our talent pipeline and invest in shares. “MPC’s D&I program allows for people who
drug and alcohol use, workplace violence ongoing growth, including doubling the number future generations. These programs are designed to support organizations focused on building a more inclusive community.
The coalition meets quarterly to discuss and address are allies and supporters to participate in our efforts.
and reasonable accommodation policies. of women officers. the successful transition to college of incoming freshmen of The ‘lunch and learn events,’ presentations, panels
socioeconomically, racially and ethnically diverse backgrounds community and business issues and opportunities related
to diversity and inclusion. and other activities really help to raise awareness
through staff and faculty guidance, skill development and and support.”
professional mentoring.You can also read
