2010 Sustainability Reporting of the World's Largest Petroleum Refining

Home , CEPSA, Idemitsu Kosan, Petroplus

Bharat Petroleum, BP, Caltex Australia, Calumet Specialty Products, Cepsa, Chevron, China National Petroleum, ConocoPhillips,2010 Sustainability Cosmo Reporting Oil, of the CPC, World's CVR Energy,Largest Eni, Petroleum Exxon Refining Mobil, Companies Formosa Petrochemical, Frontier Oil, Galp Energia, Pacific Sustainability Index Scores: A benchmarking tool for online sustainability reporting GS Holdings, Hess, Hindustan Petroleum, Holly, Idemitsu Kosan, Indian Oil, Israel C o r p . , L u k o i l , M a r a t h o n O i l , M o l Hungarian Oil and Gas, Murphy Oil, Neste Oil, Nippon Mining Holdings, Nippon Oil, OMV Group, PDVSA, Petrobras, Petronas, Petroplus Holdings, PKN Orlen Group, PTT, Reliance Industries, Repsol YPF, Rosneft Oil, Royal Dutch Shell, Showa Shell Sekiyu, Sinopec, SK Holdings, S-Oil, Statoil Hydro, Suncor Energy, Sunoco, Tesoro, TNK-BP Holding, Total,United Reﬁning, J.E. Morhardt, Elgeritte Adidjaja, Gracie Beck, Shae Blood, Leah Bross, William Brown, Carolyn Campbell, Jaclyn T. D'Arcy, Whitney Ellen Dawson, V a l e r o E n e r g y , WKaren de e Wolski, s tKaren e Diaz, r Erin n Franks, R Karina e Gomez, ﬁ nAustin i Prentice n g Hallett, Bukola Jimoh, Eric Robert King, Ryan Dean Chas Kristensen, Danielle L. Manning, Allison Scott, Ashley Scott, Aisha Shaikh, Michael Handler Shoemaker, Jennifer Katelyn Ward, and Kathleen West. Contents

The Roberts Environmental Center has been the foremost Topics Page analyst of corporate sustainability reporting for over a Company Rankings 3 decade. We analyze corporate online disclosure using our Lead Analyst’s Commentary 4 Pacific Sustainability Index (PSI) and publish the results Carbon Capture and Storage Trends in the 5 online. Petroleum Industry PSI Overview 7 Industrial Sector** 2 2 2 2 2 2 2 0 0 0 0 0 0 0 PSI Scoring in a Nutshell 8 0 0 0 0 0 0 1 Environmental Intent Topics 9 4 5 6 7 8 9 0 Environmental Reporting Topics 10 Aerospace and defense X X Social Intent Topics 11 Airlines X X Social Reporting Topics 12 Banks, Insurance X

Environmental Intent Element of the PSI 13 Chemicals X X X Largest Companies in China X Scores 1 Colleges/Universities X Environmental Reporting Element of the PSI 14 Computer, Office Equipment, X Scores and Services Social Intent Element of the PSI Scores 15 Consumer Food, Food X X Social Reporting Element of the PSI Scores 16 Production, & Beverages Electronics and X X X Environmental Intent Scores Ranking 17 Semiconductors Environmental Reporting Scores Ranking 18 Energy X* X* X Environmental Performance Scores Ranking 19 Entertainment X Social Intent Scores Ranking 20 Food Services X Social Reporting Scores Ranking 21 Forest and Paper Products X X X General Merchandiser X Social Performance Scores Ranking 22 Homebuilders X Human Rights Reporting Element 23 Industrial and Farm X X PSI Scores Average by Countries 24 Equipment Visual Cluster Analysis 25 Mail, Freight, & Shipping X Relationship between PSI Scores and 27 Medical Products & X Equipment Revenue and Profit * Metals X X X Company Rankings Based on the Number of 30 Mining, Crude Oil X* X X Goals Reported Motor Vehicle and Parts X X X Company Rankings Based on the Better 31 Oil and Gas Equipment X Performance Reported Petroleum and Refining X X X Companies Rankings Based on the Number of 33 Pharmaceuticals X X X X Scientific, Photo, & Control X Topics in which Performance is Better than Equipment Sector Average Telecommunications, X Analyst’s Comments, alphabetically listed by 34 Network, & Peripherals company name Utilities, Gas, and Electric X* X* X Appendix: PSI Questionnaire 88 * Multiple-sector category was separated in later years. **As of October 2010. Questions should be addressed to: 1 Top 50 Liberal Art Colleges.

Dr. J. Emil Morhardt, Director ([email protected]) The goal of corporate report analysis conducted by the Roberts Roberts Environmental Center Environmental Center is to acquaint students with Claremont McKenna College environmental and social issues facing the world’s industries, 925 N. Mills Ave. Claremont, CA 91711-5916, USA and the ways in which industry approaches and resolves these Direct line: (909) 621-8190 issues. The data presented in this report were collected by student research assistants and a research fellow at the Elgeritte Adidjaja, Research Fellow: (909) 621-8698 Roberts Environmental Center. Copyright 2010 © by J. Emil ([email protected]) Morhardt. All rights reserved.

Departmental secretaries: (909) 621-8298

www.roberts.cmc.edu 1 Petroleum Refining Sector Petroleum Refining Sector Corporate Environmental and Sustainability Reporting

Company Rankings Overall Grade A+ MOL Group (Hungary) MOL Group 61.13 OMV Group 58.37 A OMV Group (Austria) S-Oil 53.35 A- S-Oil (South Korea) Marathon Oil 52.52 Eni 51.99 A- Marathon Oil (USA) Repsol YPF 50.56 A- Eni (Italy) Total 46.66 Exxon Mobil 45.92 A- Repsol YPF (Spain) Petrobras 44.29 B+ Total (France) CPC 43.84 Sunoco 42.52 B+ Exxon Mobil (USA) Suncor Energy 42.52 B+ Petrobras (Brazil) Idemitsu Kosan 41.81 B+ CPC (Taiwan) Bharat Petroleum 40.29 Reliance Industries 39.26 B Sunoco (USA) PKN Orlen Group 38.94 B Suncor Energy (USA) Chevron 38.55 BP 37.58 B Idemitsu Kosan (Japan) Tesoro 36.81 B Bharat Petroleum (India) Royal Dutch Shell 36.26 Cepsa 35.99 B Reliance Industries (India) Nippon Oil 34.90 B PKN Orlen Group (Poland) Cosmo Oil 34.45 Hess 34.13 B Chevron (USA) PTT 33.30 B- BP (U.K.) Rosneft Oil 32.81 Showa Shell Sekiyu 32.60 B- Tesoro (USA) ConocoPhillips 31.59 B- Royal Dutch Shell (Netherlands) Lukoil 30.41 Statoil Hydro 29.51 B- Cepsa (Spain) Neste Oil 29.44 B- Nippon Oil (Japan) Petronas 28.39 Indian Oil 28.11 B- Cosmo Oil (Japan) Nippon Mining Holdings 25.37 B- Hess (USA) Sinopec 24.77 Caltex Australia 21.06 B- PTT (Thailand) China National 19.10 C+ Rosneft Oil (Russia) Hindustan Petroleum 18.02 TNK-BP Holding 17.64 C+ Showa Shell Sekiyu (Japan) Valero Energy 17.36 C+ ConocoPhillips (USA) Murphy Oil 13.64 C+ Lukoil (Russia) PDVSA 9.67 Frontier Oil 9.08 C+ Statoil Hydro (Norway) SK Holdings 8.90 C+ Neste Oil (Finland) Formosa Petrochemical 8.14 Galp Energia 7.41 C+ Petronas (Malaysia) Petroplus Holdings 6.40 C+ Indian Oil (India) Holly 5.67 Western Refining 5.53 C Nippon Mining Holdings (Japan) Israel Corp. 4.42 C Sinopec (China) Calumet Specialty 3.97 United Refining 3.24 C- Caltex Australia (Australia) CVR Energy 3.03 C- China National Petroleum (China) GS Holdings 0.00 C- Hindustan Petroleum (India) 0 25 50 75 100 D+ TNK-BP Holding (Russia) D+ Valero Energy (USA) This report is an analysis of the voluntary environmental and social reporting D+ Murphy Oil (USA) of companies on the Petroleum and Refining Petroleum Refining sector lists. D PDVSA (Venezuela) D Frontier Oil (USA) Data were collected from corporate websites during the initial analysis D SK Holdings (South Korea) period (dates shown below). A draft sector report was then made available D Formosa Petrochemical (Taiwan) online and letters were sent to all companies inviting them to review the D- Galp Energia (Portugal) analysis, to identify anything missed by our analysts, and to post additional D- Petroplus Holdings (Switzerland) D- Holly (USA) material on their websites if they wished to improve their scores. D- Western Refining (USA) Analysis Period: 8/15/2009through 12/12/2009 D- Israel Corp. (Israel) Draft sector report available for review: 5/7/2010through 6/7/2010 D- Calumet Specialty Products (USA) D- United Refining (USA) D- CVR Energy (USA) F GS Holdings (North Korea)

www.roberts.cmc.edu 2 Petroleum Refining Sector

Lead Analyst’s Commentary to limit greenhouse gases, raised public ire and By Karen de Wolski, CMC ‘11 it the end, didn’t work. Why do oil companies think they have a right to increase pollution of In most sectors scored by the Roberts California air?, the public asked. Maybe this Environmental Center, there is a high correlation kind of public pressure will cause large refiners between revenue and overall score, which to divert the resources necessary to get back to makes sense considering that large companies the top of our list. have more capital available to spend on corporate sustainability reporting. Their reports The correlation between revenue and score therefore tend to be more thorough and in the petroleum refining sector is impressively professional due to the resources invested in low compared to most other sectors. For them. Because larger companies are also more example, revenue explained 59% of the likely to be under public and governmental differences in score in the paper products scrutiny than small ones, high revenue sector, 54% in the pharmaceutical sector, and corporations are often also more motivated to 45% in the chemicals sectors, but only 7% in the genuinely improve sustainability performance. petroleum refining sector. The top scoring Consequently, there is usually an authentic companies, Mol Hungarian, OMV, S-Oil, and relationship between reporting quality and Marathon, have relatively unsubstantial practice, and the added transparency reinforces revenues compared to their better-known constant performance improvement. The counterparts, yet have managed to obtain higher correlation between revenue and score is grades than the highest grossing corporations in highest in consumer-driven industries, such as the sector. How can a small Hungarian oil motor vehicles, and lowest in sectors that cater company produce better corporate sustainability to consumers with little choice of supplier, such reporting than BP or Exxon Mobil? as energy and utilities. The petroleum refining business falls somewhere in the middle. There are some key benchmarking points Consumers frequently select their petroleum that help to answer this question. Vital to supplier solely on the basis of price, and improving sustainability practice is setting because petroleum refining companies are both explicit numerical goals that can be attained on regulated and protected heavily by a foreseeable timeline. Of the three largest governments, there may be little additional corporations, Exxon Mobil and Royal Dutch Shell motivation to improve transparency or each listed only one such goal in their reports; performance beyond that required. BP had none. Meanwhile, two of the highest scorers, OMV Group and Eni, each had five. The recent disastrous explosion at Perhaps the most important benchmark in Transocean’s Deepwater Horizon rig, and the sustainability reporting is performance resulting massive oil spill from BP’s Macondo improvement from year to year. The top six well into the Gulf of Mexico may have changed scorers in this report are also at that the top of the way that the public views petroleum refining the list in performance indicator improvement companies’ health, safety, and environmental since the previous year. From our standpoint, responsibilities; the spill has led to an simple discussion of initiatives regarding aggressive boycott of BP stations trumping price sustainable practices and challenges is not and convenience. And in California, the support sufficient; companies must substantiate their by Valero, Tesoro, and Occidental Petroleum of claims to good practice with quantitative data Proposition 23 to overturn SB32, California’s law that support their statements.

www.roberts.cmc.edu 3 Petroleum Refining Sector

Carbon Capture and Storage for developing the domestic infrastructure and Trends in the Petroleum Industry capacity building in technologies of capture, By Karina Gomez, CMC ‘12 geological storage of CO2, and assessment of potential vulnerability of the company. Suncor Due to the threat of climate change, new Energy admits it cannot implement CCS on its regulations and technologies have been own because of the high cost, but the company developed to reduce the amount of greenhouse has joined the Integrated CO2 Network, a group gas (GHG) emissions, especially in the of 18 major petroleum companies in the process Petroleum Industry. One such method is the of proposing a carbon capture and storage Kyoto Protocol, an international agreement system with the potential to reduce CO2 linked to the United Nations Framework emissions by at least 20 million tonnes per year Convention on Climate Change. This agreement by 2020. commits companies to stabilize GHG emissions with three main mechanisms. One such Many companies in the sector now implement a mechanism is the Clean Development blend of emission reduction mechanisms. Mechanism (CDM), which is any project activity Companies such as Reliance Industries, Repsol, that involves energy-efficient methods. BP, Bharat Petroleum, Statoil, Conoco Philips, However, companies in the petroleum sector are and Hess support implementation of CCS while now placing interest in a new mechanism: also implementing CDM projects. For example, Carbon Capture and Storage (CCS). Reliance Industries is reducing emissions through three CDM projects; reducing CCS, also known as Carbon Capture and transportation distances, replacing carbon Sequestration, is a new technology that allows a intensive fuels with natural gas, and replacing company to capture carbon emissions during diesel forklifts with automated conveyors, yet it production and safely store these emissions is also a member of Carbon Capture and underground in geological formations or inject Sequestration Association for active the emissions back into oil fields for enhanced participation in activities related to CCS. BP is recovery; this method aims to keep these focusing investment activity in alternative emissions from being released into the energy technology such as wind, solar, biofuels, atmosphere. Carbon Capture and Storage is a and CCS, but it has also implemented the fairly new technology that has been proven at conversion of fossil fuels into hydrogen used for pilot scales, yet largely unproven as a large power generation. During this process, the scale mechanism to minimize the introduction of company is capturing 90% of carbon emissions CO2 into the atmosphere. It is expensive to and injecting them into oil fields to enhance integrate into facilities, but some companies, production. Bharat Petroleum has implemented including Petrobras, Mol Group, CPCA, Suncor fossil fuel power plants equipped with CCS units Energy, ENI, and Royal Dutch Shell already use it to reduce GHG emissions. for enhanced oil recovery and are currently looking into its feasibility for CO2 emissions reductions as well. Companies such as PKN, SK Holdings, Exxon Mobil, and Marathon Oil are focusing primarily Petrobras has created a Thematic Network of on the implementation of carbon storage. Exxon Carbon Sequestration and Climate Change group

www.roberts.cmc.edu 4 Petroleum Refining Sector

Mobil notes that it is one of the leaders in CO2, often with discussion of costs and development and use of component technological challenges of the various options. technologies essential for CCS; for example For example, ENI believes that CCS can offer Exxon’s La Barge Shute Creek facility has been significant advantages in making the use of capturing, transporting, and selling CO2 since fossil energy sustainable, but points out that 1987 at a rate of close to 4 million metric tons of capturing CO2 is difficult and currently CO2 per year. Both Exxon and Marathon Oil expensive. Suncor Energy discusses that the implement Enhanced Oil Recovery using CCS by cost of over 1,400 kilometers of main pipeline injecting captured carbon back into oil fields to needed to connect the captured CO2 from plants boost oil recovery. to storage locations is not only expensive but challenging considering labor and supply Companies such as Petronas, Idemitsu Kosan, shortages. Royal Dutch Shell notes that the Cepsa, Cosmo Oil, and Rosneft Oil focus expenses of CCS are a critical area in which primarily on implementations of Kyoto governments need to provide support for mechanisms. Idemitsu Kosan mentions its demonstration projects. Hess believes that a investment in the carbon fund through CDM post-2012 Kyoto climate and carbon policy will technologies such as converting service have a significant impact on commercial and stations from fluorescent to light-emitting diode political viability of CCS. From these remarks illumination. Through this conversion, Idemitsu about companies’ concerns with CCS, it is clear lowers electrical power consumption and CO2 that more time and further research will emissions. Cosmo Oil initiated effective CDM determine if CCS will be further integrated into projects by transforming water and pressure the petroleum industry. pumps to energy-saving models.

Companies such as OMV, Total, and Nippon Oil Exploration are exploring their own blend of emission-reduction mechanisms. OMV is coordinating the implementation of Zero- Emission Power Plants (ZEP) by way of CCS. With these ZEPs, CO2 produced during electricity generation is transported to a reservoir and injected into strata deep below the Earth’s surface, reducing its emissions by 80- 90%. Nippon Oil has implemented a project that reduces GHG emission by supplying associated gas, a by-product of crude oil reduction, and combines this with the use of gas to liquids (GTL) technology to utilize natural gas commercially.

Overall, companies in the petroleum industry reported a wide range of initiatives and mechanisms to reduce emissions, especially of

www.roberts.cmc.edu 5 Petroleum Refining Sector The Pacific Sustainability Index (PSI) Overview

the PSI Scoring System The Pacific Sustainability Index (PSI) uses two systematic questionnaires to analyze the quality of the sustainability reporting—a base questionnaire for reports across sectors and a sector-specific questionnaire for companies within the same sector. The selection of questions is based on, and periodically adjusted to, the most frequently-mentioned topics in over 1,900 corporate sustainability reports analyzed from 2002 through 2009 at the Roberts Environmental Center.

The Roberts Environmental Center The Roberts Environmental Center is an environmental research institute at Claremont McKenna College (CMC). Its mission is to provide students of all the Claremont colleges with a comprehensive and realistic understanding of today’s environmental issues and the ways in which they are being and can be resolved-- beyond the confines of traditional academic disciplines and curriculum--and to identify, publicize, and encourage policies and practices that achieve economic and social goals in the most environmentally benign and protective manner. The Center is partially funded by an endowment from George R. Roberts (Founding Partner of Kohlberg Kravis Roberts & Co. and CMC alumnus), other grants, and gifts, and is staffed by faculty and students from the Claremont Colleges.

Methodology Student analysts download relevant English language web pages from the main corporate website for analysis. Our scoring excludes data independently stored outside the main corporate website or available only in hard copy. When a corporate subsidiary has its own sustainability reporting, partial credit is given to the parent company when a direct link is provided in the main corporate website. We archive these web pages as PDF files for future reference. Our analysts use a keyword search function to search reporting of specific topics and, they fill out a PSI scoring sheet (http://www.roberts.cmc.edu/PSI/scoringsheet.asp), and track the coverage and depths of different sustainability issues mentioned in all online materials.

Scores and Ranks When they are finished scoring, the analysts enter their scoring results into the PSI database. The PSI database calculates scores and publishes them on the Center’s website. This sector report provides an in- depth analysis on sustainability reporting of the largest companies of the sector, as listed in the latest Fortune Global 500 and 1000 lists. Prior to publishing our sector report, we notify companies analyzed and encourage them to provide feedback and additional new online materials, which often improve their scores.

What do the scores mean? We normalize all the scores to the potential maximum score. Scores of subsets of the overall score are also normalized to their potential maxima. The letter grades (A+, A, A-, B+, etc.), however, are normalized to the highest scoring company analyzed in the report. Grades of individual companies in the report might be different from grades posted online on the Roberts Environmental Center's website, since the normalization of scores of an individual company online is not limited to the companies analyzed in the sector report, but also includes other companies of the same sector irrespective of the year of analysis. Companies with scores in the highest 4% get A+ and any in the bottom 4% get F. We assign these by dividing the maximum PSI score obtained in the sector into 12 equal parts then rounding fractional score up or down. This means that A+ and F are under-represented compared the other grades. The same technique applies to the separate categories of environmental and social scores. Thus, we grade on the curve. We assume that the highest score obtained in the sector and any scores near it represent the state-of-the-art for that sector and deserve an A+.

www.roberts.cmc.edu 6 Petroleum Refining Sector PSI Scoring in a Nutshell

Our analysis of sustainability reporting has a set of basic topics applied to all organizations as well as a series of sector-specific topics. The topics are divided into environmental and social categories—the latter including human rights—and into three types of information: 1) intent, 2) reporting, and 3) performance.

1. Intent The “Intent” topics are each worth two points; one point for a discussion of intentions, vision, or plans, and a one point for evidence of specific actions taken to implement them.

2. Reporting The “Reporting” topics are each worth five points and are either quantitative (for which we expect numerical data) or qualitative (for which we don’t).

For quantitative topics, one point is available for a discussion, one point for putting the information into perspective (i.e. awards, industry standards, competitor performance, etc., or if the raw data are normalized by dividing by revenue, number of employees, number of widgets produced, etc.), one point for the presence of an explicit numerical goal, one point for numerical data from a single year, and one point for similar data from a previous year.

For qualitative topics, there are three criteria summed to five points: 1.67 points for discussion, 1.67 points for initiatives or actions, and 1.67 points for perspective.

3. Performance For each “Reporting” topic, two performance points are available.

For quantitative topics, one point is given for improvement from the previous reporting period, and one point for better performance that the sector average (based on the data used for this sector report normalized by revenue).

For qualitative topics we give one point for any indication of improvement from previous reporting periods, and one point for perspective.

The 11 “human rights” topics are scored differently, with five “reporting” points; 2.5 points for formally adopting a policy or standard, and 2.5 points for a description of monitoring measures. In addition, there are two “performance” points; one point for evidence of actions to reinforce policy and one point for a quantitative indication of compliance.

Distribution of Scores by topics

www.roberts.cmc.edu 7 Petroleum Refining Sector Petroleum and Refining Environmental Intent Topics Average percent of maximum possible points. Two possible points for each topic: Accountability 80 74.07 4 * Report contact person 19 * Environmental management structure

70 Management 61.48 16 Environmental education 60.19 * 58.33 20 * Environmental management system 60 21 * Environmental accounting 23 * Stakeholder consultation 50 Policy 9 * Environmental policy statement 10 Climate change/global warming 40 * 11 * Habitat/ecosystem conservation 12 * Biodiversity 30 13 * Green purchasing Vision 5 Environmental visionary statement 20 * 6 * Environmental impediments and challenges

0 Policy Vision Management ility Accountab

Emissions to air Percent of total possible score for all colleges combined. 83 * Greenhouse gases (or CO2 equivalents), total 112 * Carbon dioxide (CO2) or equivalents (i.e. GHG) 114 * Volatile organic compounds (VOCs) 50 115 * Methane (CH4) 45.56 116 * Sulfur hexafluoride (SF6) 45 118 * Carbon monoxide (CO) 121 * Nitrogen oxides (NOx) 38.84 40 37.22 122 * Volatile organic carbon (VOC), concentration 123 * Particulate matter (dust) 35 127 * Sulfur oxides (SOx) Emissions to water 30 27.88 27.96 129 * Suspended solids, total (TSS) 131 * Biochemical Oxygen Demand (BOD) 25 132 * Emissions to water, total, including fuel spillage or leakage 20.62 20 18.15 Energy 26 * Energy used (total) 14.57 15 27 * Energy used (renewable) Management 10 38 * Notices of violation (environmental) 39 * Environmental expenses and investments 5 40 * Fines (environmental) 133 * Green technologies research and development 0 134 * Protection of marine ecosystems 136 * Recovery of spilled fuel 137 * Pipelines, monitoring and maintenance Water Waste Energy 195 * Accidental spills Recycling

Management Materials usage Emissions to air to Emissions Materials usage Materials

Emissions to water to Emissions 147 * Life Cycle Analysis (LCA) Recycling 30 * Waste recycled: Solid waste 32 * Waste (office) recycled 106 * Materials recycled: Wastewater Waste 34 * Waste (solid) disposed of 35 * Waste (hazardous) produced 37 * Waste (hazardous) released to the environment 110 * Waste water released to natural water bodies Water 29 * Water used

Notes: * These numbers correspond to the numbers in the PSI questionnaire. Items with numbers higher than 99 are sector specific questions. www.roberts.cmc.edu 9 Petroleum Refining Sector Petroleum and Refining Social Intent Topics

Two possible points for each topic: Average percent of maximum possible points. Accountability 51 Health and Safety, or Social organizational 70 * 65.43 structure 63.89 62.04 54 * Third-party validation

60 Management 17 * Workforce profile: Ethnicities/Race 18 * Workforce profile: Gender 50 45.54 52 * Workforce profile: Age 53 * Emergency preparedness program 40 82 * Employee training for career development Policy

30 45 * Social policy statement 47 * Code of conduct or business ethics 49 * Supplier screening based on social or 20 environmental performance/ Supplier 15.74 management Social Demographic 10 80 * Employment for individuals with disabilities Vision 0 42 * Social visionary statement

Policy Vision 43 * Social impediments and challenges Management ility Accountab Social Demographic Social

Notes: * These numbers correspond to the numbers in the PSI questionnaire. Items with numbers higher than 99 are sector specific questions. Appendix 1 has the complete questionnaire. www.roberts.cmc.edu 10 Petroleum Refining Sector Petroleum and Refining Social Reporting Topics Seven possible points for each topic: Human Rights Average percent of maximum possible points. 1 * Sexual harassment 7 * Political contributions 70 8 * Bribery 61.60 58 * Anti-corruption practices 60 59 * Degrading treatment or punishment of employees 60 * Elimination of discrimination in respect to employment and occupation 50 44.14 61 * Free association and collective bargaining of 42.22 employees 62 Fair compensation of employees 40 * 63 * Elimination of all forms of forced and compulsory 30.60 labor 30 64 * Reasonable working hours 65 * Effective abolition of child labor

20 Management 2 * Women in Management Qualitative Social 10 66 * Community development 67 * Employee satisfaction surveys 0 68 * Community education 70 * Occupational health and safety protection 72 * Employee volunteerism Management Human Rights Human 185 * Access to health care for employees Qualitative Social Qualitative Quantitative Social Quantitative Quantitative Social 3 * Employee turnover rate 74 * Recordable incident/accident rate 75 * Lost workday case rate 76 * Health and safety citations 77 * Health and safety fines 81 * Social community investment 158 * Fatal Injuries 159 * Serious Injuries

Environmental visionary 90.7% statement 86.1%

Climate change/global 83.3% warming 75.9%

Environmental policy 83.3% statement 78.7%

Environmental management 77.8% structure 62.0%

Environmental management 72.2% system 68.5%

72.2% Report contact person 58.3%

72.2% Stakeholder consultation 63.0%

Environmental impediments 68.5% and challenges 62.0%

Habitat/ecosystem 68.5% conservation 66.7%

63.0% Environmental education 56.5%

59.3% Biodiversity 54.6%

59.3% Environmental accounting 45.4%

37.0% Green purchasing 31.5%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

= Percentage of companies addressing the topics = Percentage of the total possible number of points awarded to all companies combined for each topic, indicating the depth of reporting coverage measured by PSI criteria for each topic. If both percentages are the same it means that each of those reporting companies reporting on a topic got all the possible points.

www.roberts.cmc.edu 12 Petroleum Refining Sector Petroleum and Refining Environmental Reporting Elements of the PSI Scores

77.8% Green technologies research and development 50.5% 72.2% Sulfur oxides (SOx) 38.6% 72.2% Greenhouse gases (or CO2 equivalents), total 34.4% 72.2% Energy used (total) 37.3% 68.5% Carbon dioxide (CO2) or equivalents (i.e. GHG) 34.7% 64.8% Environmental expenses and investments 29.9% 64.8% Nitrogen oxides (NOx) 34.7% 63.0% Accidental spills 28.0% 61.1% Water used 32.5% 59.3% Waste (solid) disposed of 25.9% 57.4% Waste recycled: Solid waste 23.5% 53.7% Energy used (renewable) 15 . 9 % 53.7% Pipelines, monitoring and maintenance 31.0% 51.9% Recovery of spilled fuel 28.6% 50.0% Waste water released to natural water bodies 25.1% 48.1% Waste (hazardous) produced 18 . 8 % 46.3% Materials recycled: Wastewater 15 . 1% 44.4% Fines (environmental) 18 . 5 % 44.4% Volatile organic compounds (VOCs) 21.7% 40.7% Emissions to water, total, including fuel spillage or leakage 15 . 9 % 38.9% Particulate matter (dust) 19 . 8 % 37.0% Protection of marine ecosystems 23.0% 36.8% Methane (CH4) 11. 8 % 27.8% Waste (hazardous) released to the environment 10 . 1% 27.8% Notices of violation (environmental) 12 . 4 % 25.9% Life Cycle Analysis (LCA) 13 . 0 % 22.2% Carbon monoxide (CO) 8.5% 20.4% Biochemical Oxygen Demand (BOD) 9.5% 18 . 5 % Suspended solids, total (TSS) 5.8% 16 . 7 % Volatile organic carbon (VOC), concentration 5.3% 16 . 7 % Waste (office) recycled 5.6% 5.6% Sulfur hexafluoride (SF6) 1. 9 %

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

www.roberts.cmc.edu 13 Petroleum Refining Sector Petroleum and Refining Social Intent Elements of the PSI Scores

87.0% Social visionary statement 79.6%

85.2% Health and Safety, or Social organizational structure 67.6%

79.6% Code of conduct or business ethics 70.4%

79.6% Social policy statement 77.8%

77.8% Employee training for career development 75.0%

70.4% Emergency preparedness program 60.2%

68.5% Third-party validation 60.2%

Supplier screening based on social or environmental 55.6% performance/ Supplier management 48.1%

50.0% Workforce profile: Gender 42.6%

48.1% Social impediments and challenges 44.4%

30.2% Workforce profile: Ethnicities/Race 25.5%

29.6% Workforce profile: Age 24.1%

20.4% Employment for individuals with disabilities 15.7%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

www.roberts.cmc.edu 14 Petroleum Refining Sector Petroleum and Refining Social Reporting Elements of the PSI Scores

87.0% Occupational health and safety protection 56.1%

81.5% Community development 60.6%

Elimination of discrimination in respect to employment and 81.5% occupation 46.8% 79.6% Community education 54.2%

77.8% Anti-corruption practices 49.5%

74.1% Social community investment 34.7%

74.1% Recordable incident/accident rate 41.8%

68.5% Bribery 42.1%

59.3% Free association and collective bargaining of employees 36.5%

57.4% Effective abolition of child labor 30.2%

55.6% Political contributions 30.4%

53.7% Employee volunteerism 31.5%

53.7% Access to health care for employees 31.5%

53.7% Lost workday case rate 32.5%

51.9% Fatal Injuries 26.5%

50.0% Women in Management 30.2%

50.0% Elimination of all forms of forced and compulsory labor 26.2%

48.1% Sexual harassment 27.5%

46.3% Employee satisfaction surveys 30.2%

46.3% Fair compensation of employees 27.8%

35.2% Employee turnover rate 15 . 9 %

29.6% Degrading treatment or punishment of employees 18 . 5 %

27.8% Reasonable working hours 11. 4 %

22.2% Health and safety fines 8.7%

18 . 5 % Serious Injuries 9.3%

13 . 0 % Health and safety citations 5.6%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

www.roberts.cmc.edu 15 Petroleum Refining Sector Environmental Intent Scores EI Scores Rankings A+ Petrobras Petrobras 100.0 CPC 100.0 A+ CPC S-Oil 100.0 Bharat Petroleum 96.2 A+ S-Oil Showa Shell Sekiyu 96.2 OMV Group 96.2 A+ Bharat Petroleum MOL Group 96.2 A+ Showa Shell Sekiyu Eni 96.2 Royal Dutch Shell 92.3 A+ OMV Group Idemitsu Kosan 92.3 Chevron 88.5 A+ MOL Group Suncor Energy 88.5 A+ Eni Repsol YPF 88.5 Reliance Industries 88.5 A Royal Dutch Shell Nippon Oil 84.6 Cepsa 80.8 A Idemitsu Kosan Total 80.8 Sunoco 80.8 A Chevron PKN Orlen Group 80.8 A Suncor Energy Marathon Oil 80.8 Exxon Mobil 80.8 A Repsol YPF Tesoro 76.9 BP 76.9 A Reliance Industries Petronas 76.9 A- Nippon Oil Lukoil 76.9 PTT 73.1 A- Cepsa Statoil Hydro 73.1 Cosmo Oil 69.2 A- Total Neste Oil 69.2 Indian Oil 69.2 A- Sunoco ConocoPhillips 65.4 A- PKN Orlen Group Rosneft Oil 65.4 Nippon Mining Holdings 65.4 A- Marathon Oil Sinopec 61.5 Hess 57.7 A- Exxon Mobil China National Petroleum 53.8 B+ Tesoro Hindustan Petroleum 53.8 Murphy Oil 50.0 BPB+ Valero Energy 46.2 PDVSA 46.2 B+ Petronas Formosa Petrochemical 42.3 Caltex Australia 38.5 B+ Lukoil TNK-BP Holding 30.8 B+ PTT Petroplus Holdings 23.1 Israel Corp. 23.1 B+ Statoil Hydro Frontier Oil 23.1 SK Holdings 19.2 B Cosmo Oil Holly 15.4 B Neste Oil Galp Energia 15.4 Western Refining 7.7 B Indian Oil United Refining 3.8 CVR Energy 3.8 B ConocoPhillips GS Holdings 0.0 Calumet Specialty Products 0.0 B Rosneft Oil B Nippon Mining Holdings 0 25 50 75 100 B- Sinopec B- Hess C+ China National Petroleum C+ Hindustan Petroleum C+ Murphy Oil C+ Valero Energy Environmental intent scores include topics about the firm’s C+ PDVSA C Formosa Petrochemical products, environmental organization, vision and commitment, C Caltex Australia stakeholders, environmental policy and certifications, environmental C- TNK-BP Holding aspects and impacts, choice of environmental performance D+ Petroplus Holdings indicators and those used by the industry, environmental initiatives D+ Israel Corp. D+ Frontier Oil and mitigations, and environmental goals and targets. D SK Holdings D Holly D Galp Energia D- Western Refining F United Refining F CVR Energy F GS Holdings F Calumet Specialty Products

www.roberts.cmc.edu 16 Petroleum Refining Sector Environmental Reporting Scores ER Scores Rankings A+ MOL Group MOL Group OMV Group 56.4657.08 A+ OMV Group Repsol YPF 52.73 A Repsol YPF S-Oil 49.09 Petrobras 46.46 A- S-Oil Sunoco 43.43 Eni 42.71 A- Petrobras Total 41.62 Idemitsu Kosan 41.46 B+ Sunoco Marathon Oil 38.33 B+ Eni Reliance Industries 37.92 Exxon Mobil 36.87 B+ Total CPC 36.16 BP 35.35 B+ Idemitsu Kosan Nippon Oil 35.35 B Marathon Oil Hess 34.75 PKN Orlen Group 34.37 B Reliance Industries Bharat Petroleum 34.34 Suncor Energy 33.96 B Exxon Mobil Cepsa 32.50 Showa Shell Sekiyu 30.71 B CPC Cosmo Oil 29.90 BPB- Rosneft Oil 29.90 Tesoro 29.70 B- Nippon Oil Chevron 29.29 Royal Dutch Shell 28.48 B- Hess Lukoil 28.48 B- PKN Orlen Group ConocoPhillips 27.88 Nippon Mining 25.25 B- Bharat Petroleum Petronas 25.05 PTT 24.85 B- Suncor Energy Neste Oil 24.44 TNK-BP Holding 23.43 B- Cepsa Statoil Hydro 23.03 C+ Showa Shell Sekiyu Caltex Australia 18.12 Indian Oil 16.77 C+ Cosmo Oil China National 14.55 Sinopec 14.55 C+ Rosneft Oil Hindustan Petroleum 11.11 C+ Tesoro Frontier Oil 9.17 Valero Energy 9.09 C+ Chevron Formosa Petrochemical 7.27 SK Holdings 5.83 C+ Royal Dutch Shell PDVSA 5.66 Murphy Oil 5.05 C+ Lukoil Galp Energia 5.05 C+ ConocoPhillips Petroplus Holdings 2.83 Israel Corp. 1.21 C Nippon Mining Holdings Calumet Specialty 0.61 GS Holdings 0.00 C Petronas Western Refining 0.00 C PTT United Refining 0.00 Holly 0.00 C Neste Oil CVR Energy 0.00 C TNK-BP Holding 0 25 50 75 100 C Statoil Hydro C- Caltex Australia C- Indian Oil D+ China National Petroleum D+ Sinopec Environmental reporting scores are based on the degree to which D Hindustan Petroleum D Frontier Oil the company discusses its emissions, energy sources and D Valero Energy consumption, environmental incidents and violations, materials use, D Formosa Petrochemical mitigations and remediation, waste produced, and water used. They D- SK Holdings also include use of life cycle analysis, environmental performance D- PDVSA D- Murphy Oil and stewardship of products, and environmental performance of D- Galp Energia suppliers and contractors. D- Petroplus Holdings F Israel Corp. F Calumet Specialty Products F GS Holdings F Western Refining F United Refining F Holly F CVR Energy

www.roberts.cmc.edu 17 Petroleum Refining Sector Environmental Performance Scores EP Scores Rankings A+ S-Oil S-Oil OMV Group 35.9436.36 A+ OMV Group Idemitsu Kosan 32.81 A Idemitsu Kosan Repsol YPF 31.82 MOL Group 31.25 A- Repsol YPF Marathon Oil 31.25 BP 30.30 A- MOL Group Sunoco 30.30 Eni 29.69 A- Marathon Oil Tesoro 28.79 BPA- Nippon Oil 28.79 Cepsa 25.00 A- Sunoco Total 24.24 Reliance Industries 21.88 A- Eni PKN Orlen Group 20.31 B+ Tesoro TNK-BP Holding 19.70 Royal Dutch Shell 19.70 B+ Nippon Oil Lukoil 19.70 Exxon Mobil 18.75 B Cepsa Rosneft Oil 18.18 Sinopec 16.67 B Total Showa Shell Sekiyu 16.67 B- Reliance Industries Cosmo Oil 15.15 Bharat Petroleum 13.64 B- PKN Orlen Group CPC 13.64 Nippon Mining Holdings 12.12 C+ TNK-BP Holding Chevron 10.61 C+ Royal Dutch Shell Suncor Energy 9.38 Petronas 9.09 C+ Lukoil ConocoPhillips 7.58 PTT 7.58 C+ Exxon Mobil Hindustan Petroleum 4.55 Petrobras 4.55 C+ Rosneft Oil Neste Oil 4.55 C Sinopec Formosa Petrochemical 4.55 Caltex Australia 3.13 C Showa Shell Sekiyu Hess 3.03 China National Petroleum 3.03 C Cosmo Oil Valero Energy 3.03 C- Bharat Petroleum Statoil Hydro 3.03 Indian Oil 3.03 CPCC- Israel Corp. 1.52 GS Holdings 0.00 C- Nippon Mining Holdings Calumet Specialty Products 0.00 Western Refining 0.00 D+ Chevron United Refining 0.00 D+ Suncor Energy SK Holdings 0.00 Petroplus Holdings 0.00 D+ Petronas PDVSA 0.00 Murphy Oil 0.00 D ConocoPhillips Holly 0.00 D PTT Galp Energia 0.00 Frontier Oil 0.00 D Hindustan Petroleum CVR Energy 0.00 D Petrobras 0 25 50 75 100 D Neste Oil D Formosa Petrochemical D- Caltex Australia D- Hess D- China National Petroleum D- Valero Energy D- Statoil Hydro Environmental performance scores are based on whether or not the D- Indian Oil firm has improved its performance on each of the topics discussed F Israel Corp. under the heading of environmental reporting, and on whether the F GS Holdings quality of the performance is better than that of the firm’s peers. F Calumet Specialty Products F Western Refining Scoring for each topic is one point if performance is better than in F United Refining previous reports, two points if better than industry peers, three F SK Holdings points if both. F Petroplus Holdings F PDVSA F Murphy Oil F Holly F Galp Energia F Frontier Oil F CVR Energy

www.roberts.cmc.edu 18 Petroleum Refining Sector Social Intent Scores SI Scores Rankings A+ MOL Group MOL Group Chevron 84.6288.46 A Chevron CPC 84.62 A CPC Repsol YPF 84.62 Exxon Mobil 84.62 A Repsol YPF Petrobras 80.77 Total 80.77 A Exxon Mobil Statoil Hydro 80.77 Eni 80.77 A Petrobras Royal Dutch Shell 76.92 A Total Rosneft Oil 76.92 OMV Group 76.92 A Statoil Hydro S-Oil 75.00 PTT 73.08 A Eni Sunoco 73.08 A- Royal Dutch Shell Suncor Energy 73.08 Hess 69.23 A- Rosneft Oil Bharat Petroleum 69.23 Cosmo Oil 69.23 A- OMV Group Idemitsu Kosan 69.23 Tesoro 65.38 A- S-Oil Showa Shell Sekiyu 65.38 A- PTT Marathon Oil 65.38 Indian Oil 65.38 A- Sunoco Cepsa 61.54 PKN Orlen Group 61.54 A- Suncor Energy Reliance Industries 57.69 B+ Hess Nippon Mining Holdings 57.69 Lukoil 57.69 B+ Bharat Petroleum Caltex Australia 53.85 BP 50.00 B+ Cosmo Oil Sinopec 50.00 Neste Oil 50.00 B+ Idemitsu Kosan ConocoPhillips 46.15 B+ Tesoro Hindustan Petroleum 46.15 China National Petroleum 42.31 B+ Showa Shell Sekiyu Valero Energy 42.31 TNK-BP Holding 42.31 B+ Marathon Oil Nippon Oil 42.31 B+ Indian Oil Petronas 38.46 Petroplus Holdings 34.62 B Cepsa PDVSA 30.77 Murphy Oil 30.77 B PKN Orlen Group SK Holdings 26.92 Galp Energia 23.08 B Reliance Industries Western Refining 19.23 B Nippon Mining Holdings Formosa Petrochemical 19.23 CVR Energy 19.23 B Lukoil Holly 15.38 Calumet Specialty Products 11.54 B- Caltex Australia Israel Corp. 11.54 BPB- Frontier Oil 11.54 United Refining 7.69 B- Sinopec GS Holdings 0.00 B- Neste Oil 0 25 50 75 100 C+ ConocoPhillips C+ Hindustan Petroleum C+ China National Petroleum C+ Valero Energy C+ TNK-BP Holding C+ Nippon Oil C Petronas Social intent scores include topics about the firm’s financials, C Petroplus Holdings employees, safety reporting, social management organization, social C- PDVSA vision and commitment, stakeholders, social policy and C- Murphy Oil certifications, social aspects and impacts, choice of social C- SK Holdings D+ Galp Energia performance indicators and those used by the industry, social D+ Western Refining initiatives and mitigations, and social goals and targets. D+ Formosa Petrochemical D+ CVR Energy D Holly D Calumet Specialty Products D Israel Corp. D Frontier Oil D- United Refining F GS Holdings

www.roberts.cmc.edu 19 Petroleum Refining Sector Social Reporting Scores SR Rankings A+ MOL Group MOL Group Marathon Oil 75.0076.92 A+ Marathon Oil OMV Group 72.31 A OMV Group Eni 65.38 Exxon Mobil 62.95 A- Eni Suncor Energy 62.69 Total 60.64 A- Exxon Mobil S-Oil 60.38 Petrobras 55.77 A- Suncor Energy CPC 55.64 B+ Total Repsol YPF 53.97 Chevron 52.56 B+ S-Oil Bharat Petroleum 51.79 ConocoPhillips 50.26 B+ Petrobras Cosmo Oil 48.97 B+ CPC PKN Orlen Group 47.69 Reliance Industries 47.56 B Repsol YPF BP 46.67 PTT 46.54 B Chevron Tesoro 46.41 Hess 46.28 B Bharat Petroleum Indian Oil 45.38 B ConocoPhillips Neste Oil 44.36 Sunoco 43.85 B Cosmo Oil Idemitsu Kosan 42.44 Statoil Hydro 41.79 B- PKN Orlen Group Royal Dutch Shell 41.28 B- Reliance Industries Cepsa 40.90 Rosneft Oil 38.33 BPB- Nippon Oil 37.56 Petronas 36.67 B- PTT Showa Shell Sekiyu 35.77 Sinopec 35.13 B- Tesoro Lukoil 32.05 B- Hess Nippon Mining Holdings 29.10 Caltex Australia 28.46 B- Indian Oil China National Petroleum 28.08 Valero Energy 27.05 B- Neste Oil Hindustan Petroleum 26.92 B- Sunoco Murphy Oil 23.08 Holly 14.74 B- Idemitsu Kosan SK Holdings 14.23 Western Refining 13.46 B- Statoil Hydro Frontier Oil 13.08 Galp Energia 11.67 C+ Royal Dutch Shell Calumet Specialty Products 11.54 C+ Cepsa PDVSA 10.00 TNK-BP Holding 9.87 C+ Rosneft Oil United Refining 9.62 Petroplus Holdings 8.46 C+ Nippon Oil Israel Corp. 7.05 C+ Petronas CVR Energy 6.54 Formosa Petrochemical 5.38 C+ Showa Shell Sekiyu GS Holdings 0.00 C Sinopec 0 25 50 75 100 C Lukoil C Nippon Mining Holdings C- Caltex Australia C- China National Petroleum C- Valero Energy C- Hindustan Petroleum C- Murphy Oil Social reporting scores are based on the degree to which the D Holly company discusses various aspects of its dealings with its D SK Holdings employees and contractors. They also include social costs and D Western Refining investments. D Frontier Oil D Galp Energia D Calumet Specialty Products D PDVSA D TNK-BP Holding D United Refining D- Petroplus Holdings D- Israel Corp. D- CVR Energy D- Formosa Petrochemical F GS Holdings

www.roberts.cmc.edu 20 Petroleum Refining Sector Social Performance Scores SP Rankings B+ Marathon Oil Marathon Oil 57.69 MOL Group 53.85 A+ MOL Group S-Oil 51.92 Eni 50.00 A- S-Oil OMV Group 42.31 CPC 40.38 A Eni Exxon Mobil 38.46 A- OMV Group Repsol YPF 36.54 Total 34.62 A CPC Bharat Petroleum 32.69 Chevron 30.77 A Exxon Mobil Suncor Energy 30.77 A Repsol YPF Royal Dutch Shell 30.77 PKN Orlen Group 30.77 A Total PTT 28.85 Sunoco 28.85 B+ Bharat Petroleum Petrobras 25.00 Idemitsu Kosan 23.08 A Chevron Tesoro 21.15 A- Suncor Energy Hess 21.15 Cepsa 21.15 A- Royal Dutch Shell Petronas 21.15 Indian Oil 21.15 B PKN Orlen Group Reliance Industries 19.23 A- PTT Sinopec 17.31 Rosneft Oil 17.31 A- Sunoco Neste Oil 17.31 Lukoil 17.31 A Petrobras BP 15.38 Valero Energy 15.38 B+ Idemitsu Kosan Nippon Oil 15.38 B+ Tesoro Caltex Australia 13.46 Statoil Hydro 13.46 B+ Hess ConocoPhillips 11.54 Cosmo Oil 11.54 B Cepsa Showa Shell Sekiyu 11.54 C Petronas Murphy Oil 11.54 China National Petroleum 7.69 B+ Indian Oil Hindustan Petroleum 7.69 PDVSA 7.69 B Reliance Industries Western Refining 3.85 SK Holdings 3.85 B- Sinopec Nippon Mining Holdings 3.85 A- Rosneft Oil Galp Energia 3.85 Frontier Oil 3.85 B- Neste Oil TNK-BP Holding 1.92 Formosa Petrochemical 1.92 B Lukoil GS Holdings 0.00 BPB- Calumet Specialty 0.00 United Refining 0.00 C+ Valero Energy Petroplus Holdings 0.00 Israel Corp. 0.00 C+ Nippon Oil Holly 0.00 CVR Energy 0.00 B- Caltex Australia A Statoil Hydro 0 25 50 75 100 C+ ConocoPhillips B+ Cosmo Oil B+ Showa Shell Sekiyu C- Murphy Oil C+ China National Petroleum C+ Hindustan Petroleum Social performance scores are based on improvement, C- PDVSA D+ Western Refining performance better than the sector average, or statements of C- SK Holdings compliance with established social standards. B Nippon Mining Holdings D+ Galp Energia D Frontier Oil C+ TNK-BP Holding D+ Formosa Petrochemical F GS Holdings D Calumet Specialty Products D- United Refining C Petroplus Holdings D Israel Corp. D Holly D+ CVR Energy

www.roberts.cmc.edu 21 Petroleum Refining Sector Petroleum and Refining Human Rights Reporting Elements of the PSI Scores

Percent of companies reporting* Human Rights Topics adoption reinforcement monitoring compliance Anti-corruption practices 77.8% 55.6% 33.3% 13.0% Bribery 68.5% 42.6% 29.6% 5.6% Degrading treatment or punishment of employees 29.6% 18.5% 13.0% 7.4% Effective abolition of child labor 57.4% 27.8% 16.7% 7.4% Elimination of all forms of forced and compulsory labor 50.0% 25.9% 13.0% 5.6% Elimination of discrimination in respect to employment 81.5% 44.4% 29.6% 14.8% and occupation Fair compensation of employees 46.3% 31.5% 16.7% 3.7% Free association and collective bargaining of 59.3% 35.2% 22.2% 20.4% employees Political contributions 55.6% 27.8% 18.5% 3.7% Reasonable working hours 27.8% 7.4% 3.7% 1.9% Sexual harassment 48.1% 27.8% 16.7% 5.6%

* Description of scoring Adoption We assign one point for adoption of a policy standard or for an explicit discussion of a company's stance on a particular human rights principle or its participation to the UN Global Compact, Reinforcement We assign one point for a description of reinforcement actions to make a policy stronger, such as providing educational programs, training, or other activities to promote awareness. Monitoring We assign one point for a description of monitoring measures including mechanisms to detect violations at an early stage, providing systematic reporting, or establishment of committtee structure to oversee risky activities. Compliance We assign one point for a quantitative indication of compliance, including the frequency of instances of being in out of compliance with the principles of the company, it's subsidiaries, or supply-chain affiliates. Describing full compliance with a broad-brushed statement such as "we are in full compliance of the local and international law" is too general in our opinion and does not count.

www.roberts.cmc.edu 22 Petroleum Refining Sector Petroleum and Refining Average Overall, Environmental, and Social PSI Scores Performance by Country This graph illustrates the average

Venezuela PSI in three categories--overall, USA U.K. environmental, and social--brake Thailand down by countries. Since our Taiwan Switzerland sample size follows the selected Spain South Korea world's largest companies from Russia Portugal the Fortune list, several countries Poland Norway have only one company score to North Korea Overall Netherlands respresent the whole country Malaysia Japan sustainability reporting in the Italy Israel sector. India Hungary France Finland China Country N Brazil Austria Australia 1 Australia Austria 1 Venezuela USA Brazil 1 U.K. Thailand China 2 Taiwan Finland 1 Switzerland Spain France 1 South Korea Russia Hungary 1 Portugal Poland India 4 Norway North Korea Israel 1 Environmental Netherlands Malaysia Italy 1 Japan Italy Japan 5 Israel India Malaysia 1 Hungary France Netherlands 1 Finland China North Korea 1 Brazil Norway 1 Austria Australia Poland 1 Venezuela Portugal 1 USA U.K. Russia 3 Thailand South Korea 2 Taiwan Switzerland Spain 2 Spain South Korea Switzerland 1 Russia Portugal Taiwan 2 Poland Norway Thailand 1 North Korea Social Netherlands U.K. 1 Malaysia Japan USA 16 Italy Israel Venezuela 1 India Hungary France Finland China Brazil Austria Australia

0 1020304050607080

www.roberts.cmc.edu 23 Petroleum Refining Sector Visual Cluster Analysis Visual cluster analysis multivariate data of the sort produced by the PSI are difficult to summarize. Here we have created radar diagrams of the performance of each company analysed in the sector by its environmental and social intent, reporting, and performance sorted by company ranking. Maximum scores will match the outer sides of the hexagon which total up to 100 percent.

EI = Environmental Intent, ER = Environmental Reporting, EP = Environmental Performance SI = Social Intent, SR = Social Reporting, SP = Social Performance

ER ER ER ER ER 100 100 100 100 100

75 75 75 75 75

EI 50 EP EI 50 EP EI 50 EP EI 50 EP EI 50 EP

25 25 25 25 25

0 0 0 0 0

SI SP SI SP SI SP SI SP SI SP

SR SR SR SR SR MOL Group OMV Group S-Oil Marathon Oil Eni ER ER ER ER ER 100 100 100 100 100

75 75 75 75 75

EI 50 EP EI 50 EP EI 50 EP EI 50 EP EI 50 EP

25 25 25 25 25

0 0 0 0 0

SI SP SI SP SI SP SI SP SI SP

SR SR SR SR SR Repsol YPF Total Exxon Mobil Petrobras CPC ER ER ER ER ER 100 100 100 100 100

75 75 75 75 75

EI 50 EP EI 50 EP EI 50 EP EI 50 EP EI 50 EP

25 25 25 25 25

0 0 0 0 0

SI SP SI SP SI SP SI SP SI SP

SR SR SR SR SR Sunoco Suncor Energy Idemitsu Kosan Bharat Petroleum Reliance Industries ER ER ER ER ER 100 100 100 100 100

75 75 75 75 75

EI 50 EP EI 50 EP EI 50 EP EI 50 EP EI 50 EP

25 25 25 25 25

0 0 0 0 0

SI SP SI SP SI SP SI SP SI SP

SR SR SR SR SR PKN Orlen Group Chevron BP Tesoro Royal Dutch Shell ER ER ER ER ER 100 100 100 100 100

75 75 75 75 75

EI 50 EP EI 50 EP EI 50 EP EI 50 EP EI 50 EP

25 25 25 25 25

0 0 0 0 0

SI SP SI SP SI SP SI SP SI SP

SR SR SR SR SR Cepsa Nippon Oil Cosmo Oil Hess PTT ER ER ER ER ER 100 100 100 100 100

75 75 75 75 75

EI 50 EP EI 50 EP EI 50 EP EI 50 EP EI 50 EP

25 25 25 25 25

0 0 0 0 0

SI SP SI SP SI SP SI SP SI SP

SR SR SR SR SR Rosneft Oil Showa Shell Sekiyu ConocoPhillips Lukoil Statoil Hydro

www.roberts.cmc.edu 24 Petroleum Refining Sector ER ER ER ER ER 100 100 100 100 100

75 75 75 75 75

EI 50 EP EI 50 EP EI 50 EP EI 50 EP EI 50 EP

25 25 25 25 25

0 0 0 0 0

SI SP SI SP SI SP SI SP SI SP

SR SR SR SR SR Neste Oil Petronas Indian Oil Nippon Mining Sinopec Holdings ER ER ER ER ER 100 100 100 100 100

75 75 75 75 75

EI 50 EP EI 50 EP EI 50 EP EI 50 EP EI 50 EP

25 25 25 25 25

0 0 0 0 0

SI SP SI SP SI SP SI SP SI SP

SR SR SR SR SR Caltex Australia China National Hindustan Petroleum TNK-BP Holding Valero Energy Petroleum ER ER ER ER ER 100 100 100 100 100

75 75 75 75 75

EI 50 EP EI 50 EP EI 50 EP EI 50 EP EI 50 EP

25 25 25 25 25

0 0 0 0 0

SI SP SI SP SI SP SI SP SI SP

SR SR SR SR SR Murphy Oil PDVSA Frontier Oil SK Holdings Formosa Petrochemical ER ER ER ER ER 100 100 100 100 100

75 75 75 75 75

EI 50 EP EI 50 EP EI 50 EP EI 50 EP EI 50 EP

25 25 25 25 25

0 0 0 0 0

SI SP SI SP SI SP SI SP SI SP

SR SR SR SR SR Galp Energia Petroplus Holdings Holly Western Refining Israel Corp. ER ER ER ER 100 100 100 100

75 75 75 75

EI 50 EP EI 50 EP EI 50 EP EI 50 EP

25 25 25 25

0 0 0 0

SI SP SI SP SI SP SI SP

SR SR SR SR Calumet Specialty United Refining CVR Energy GS Holdings Products

www.roberts.cmc.edu 25 Petroleum Refining Sector Relationships Between Overall PSI Score and Companies' Revenue and Profit

Company Name Overall Revenue Profit Score ($million) ($million)

Bharat Petroleum 40.29 29989 138.00 BP 37.58 367053 21157.00 Caltex Australia 21.06 19770 29.00 Calumet Specialty Products 3.97 2489 44.40 Cepsa 35.99 33417 402.00 Chevron 38.55 263159 23931.00 China National Petroleum 19.10 181123 10271.00 ConocoPhillips 31.59 230764 -16998.00 Cosmo Oil 34.45 29710 -920.00 CPC 43.84 28452 -3824.00 CVR Energy 3.03 5016.1 163.90 Eni 51.99 159348 12917.00 Exxon Mobil 45.92 442851 45220.00 Formosa Petrochemical 8.14 27769 482.00 Frontier Oil 9.08 6498.8 80.20 Galp Energia 7.41 22230 171.00 GS Holdings 0.00 36503 102.00 Hess 34.13 41094 2360.00 Hindustan Petroleum 18.02 28247 165.00 Holly 5.67 5867.7 120.60 Idemitsu Kosan 41.81 33522 33.00 Indian Oil 28.11 62993 565.00 Israel Corp. 4.42 19802 320.00 Lukoil 30.41 86340 9144.00 Marathon Oil 52.52 73504 3528.00 Murphy Oil 13.64 27512 1740.00 Neste Oil 29.44 19299 142.00 Nippon Mining Holdings 25.37 37533 -406.00 Nippon Oil 34.90 64198 -2505.00 OMV Group 58.37 37386 2012.00 PDVSA 9.67 126364 7451.00 Petronas 28.39 76965 15309.00 Petroplus Holdings 6.40 28048 -495.00 PKN Orlen Group 38.94 33043 -1041.00 PTT 33.30 59985 1550.00 Reliance Industries 39.26 31792 3320.00 Repsol YPF 50.56 79177 3968.00 Rosneft Oil 32.81 46985 11120.00 Royal Dutch Shell 36.26 458361 26277.00 Showa Shell Sekiyu 32.60 31664 -157.00 Sinopec 24.77 207814 1961.00

www.roberts.cmc.edu 26 Petroleum Refining Sector SK Holdings 8.90 80810 259.00 S-Oil 53.35 21020 406.00 Statoil Hydro 29.51 116211 7664.00 Suncor Energy 42.52 27680 2004.00 Sunoco 42.52 51652 776.00 Tesoro 36.81 28031 278.00 TNK-BP Holding 17.64 34668 6384.00 Total 46.66 234674 15500.00 United Refining 3.24 2994.2 -49.90 Valero Energy 17.36 118298 -1131.00 Western Refining 5.53 10725.6 64.20 Source: 2009 Fortune List.

61.13 60 58.37

53.35 52.52 51.99 50 50.56 46.66 45.92 43.84 42.5242.5241.81 40 39.2638.94 37.58 36.8135.99 36.26 34.45 34.90 32.6032.81 30 29.44 30.41 29.51 28.1128.39

Overall PSI Scores 25.37 24.77

20 21.06 17.64 17.36 13.64 10 9.67 9.08 8.14 8.90 7.41 2 5.675.53 4.42 R = 0.0717 3.973.243.03 0 0 50000 100000 150000 200000 250000 300000 350000 400000 450000 500000

Revenue ($M)

www.roberts.cmc.edu 27 Petroleum Refining Sector 70

61.13 60 58.37

53.35 52.52 51.99 50 50.56 46.66 45.92 43.84 41.8142.5242.52 40 38.94 39.26 37.58 36.8135.99 36.26 34.9034.45 32.60 32.81 30 29.44 29.5130.41 2 28.11 28.39 R = 0.0684

Overall PSI Scores 25.3724.77

20 21.06 17.36 17.64 13.64 10 9.088.90 9.67 7.418.14 5.535.67 4.42 3.243.973.03 0 -10000 0 10000 20000 30000 40000 50000

Profit ($M)

www.roberts.cmc.edu 28 Petroleum Refining Sector Number of Explicit numerical goals Reported Idemitsu Kosan Suncor Energy 5 7 Chevron 5 OMV Group 5 CPC 5 Eni 5 Nippon Mining Holdings 4 Reliance Industries 4 Nippon Oil 3 Neste Oil 3 Cepsa 3 PDVSA 2 Showa Shell Sekiyu 2 Repsol YPF 2 Marathon Oil 2 Petrobras 2 Hindustan Petroleum 2 Cosmo Oil 2 Total 2 Formosa Petrochemical 2 Bharat Petroleum 2 Exxon Mobil 1 Lukoil 1 Indian Oil 1 Royal Dutch Shell 1 Hess 1 S-Oil 1 Caltex Australia 1 Sunoco 1 Tesoro 1 PKN Orlen Group 1 0 5 10 15 20 25

Explicit Goals Most Frequently Reported 1 Recordable incident/accident rate 15 2 Energy used (total) 8 3 Carbon dioxide (CO2) or equivalents (i.e. GHG) 8 4 Lost workday case rate 6 5 Greenhouse gases (or CO2 equivalents), total 6 6 Social community investment 5 7 Volatile organic compounds (VOCs) 4

www.roberts.cmc.edu 29 Petroleum Refining Sector Number of Topics Showing Performance Improvement over Previous Year Data

Repsol YPF 25 S-Oil 23 MOL Group 21 Marathon Oil 20 Eni 20 OMV Group 19 PKN Orlen Group 18 Total 18 Sunoco 18 Exxon Mobil 17 Tesoro 16 Bharat Petroleum 16 Idemitsu Kosan 15 CPC 14 Chevron 14 Royal Dutch Shell 13 PTT 11 Reliance Industries 10 Nippon Oil 10 Cepsa 10 BP 9 Sinopec 8 Rosneft Oil 8 TNK-BP Holding 8 Lukoil 8 ConocoPhillips 8 Suncor Energy 7 Petronas 6 Hess 6 Petrobras 5 China National 4 Caltex Australia 4 Hindustan Petroleum 4 Showa Shell Sekiyu 4 Cosmo Oil 4 Indian Oil 3 Statoil Hydro 3 Valero Energy 3 PDVSA 2 Neste Oil 2 Formosa Petrochemical 2 Nippon Mining Holdings 2 0 5 10 15 20 25 30

Topics Most Frequently Reported as Having Improvements over previous year data 1 Sulfur oxides (SOx) 21 2 Recordable incident/accident rate 20 3 Nitrogen oxides (NOx) 20 4 Community development 19 5 Green technologies research and development 19 6 Energy used (total) 18 7 Social community investment 16 8 Occupational health and safety protection 16 9 Lost workday case rate 15 10 Carbon dioxide (CO2) or equivalents (i.e. GHG) 15 11 Water used 14 12 Greenhouse gases (or CO2 equivalents), total 14 13 Waste water released to natural water bodies 14 14 Fatal Injuries 13 15 Particulate matter (dust) 13 16 Environmental expenses and investments 12

www.roberts.cmc.edu 30 Petroleum Refining Sector 17 Volatile organic compounds (VOCs) 12 18 Accidental spills 11 19 Women in Management 10 20 Waste (solid) disposed of 10 21 Community education 9 22 Fines (environmental) 8 23 Waste (hazardous) produced 8 24 Waste recycled: Solid waste 8 25 Protection of marine ecosystems 8 26 Emissions to water, total, including fuel spillage or leakage 8 27 Biochemical Oxygen Demand (BOD) 7 28 Materials recycled: Wastewater 7 29 Notices of violation (environmental) 6 30 Recovery of spilled fuel 6 31 Employee satisfaction surveys 6 32 Access to health care for employees 6 33 Methane (CH4) 5 34 Carbon monoxide (CO) 5 35 Employee turnover rate 5 36 Serious Injuries 5 37 Energy used (renewable) 4 38 Employee volunteerism 4 39 Pipelines, monitoring and maintenance 4 40 Health and safety fines 4 41 Waste (hazardous) released to the environment 3 42 Health and safety citations 3 43 Suspended solids, total (TSS) 2 44 Volatile organic carbon (VOC), concentration 2 45 Waste (office) recycled 1 46 Sulfur hexafluoride (SF6) 1 47 Life Cycle Analysis (LCA) 1

www.roberts.cmc.edu 31 Petroleum Refining Sector Number of Topics in which Performance was Better than Sector Average*

Idemitsu Kosan 13 BP 12 Cepsa 11 Nippon Oil 10 Reliance Industries 10 S-Oil 9 Lukoil 9 Royal Dutch Shell 8 Tesoro 7 Rosneft Oil 7 Nippon Mining Holdings 7 Cosmo Oil 7 Marathon Oil 6 Showa Shell Sekiyu 5 Sinopec 5 Sunoco 5 OMV Group 5 MOL Group 4 Exxon Mobil 4 TNK-BP Holding 4 Petronas 3 Eni 3 Suncor Energy 3 Neste Oil 1 Valero Energy 1 Israel Corp. 1

0 2 4 6 8 10 12 14

*Sector averages are calculated from the materials scored for this report.

www.roberts.cmc.edu 32 Petroleum Refining Sector Bharat Petroleum Bharat Petroleum 2009 Corporate Sustainability B Report and 2009 Web Pages

Bharat Petroleum has received an extensive list of awards, including the Golden Peacock Environment Gold Award 2008, the Safety Innovation Award 2007, and the Excellent Water Efficient Unit Award-Beyond the Fence Award 2007. These awards recognize various aspects of the company’s efforts both in and outside of the corporate headquarters, suggesting a commitment to corporate social responsibility and sustainability. Despite Bharat Petroleum’s seemingly transparent character, the company misses several easily gained points on the PSI by failing to address formal adoption of standards for political contributions, bribery, equal opportunity, and corporal punishment of employees. Still, Bharat has made significant progress in its social and environmental commitments, particularly in contributions to community development. For example, the company has adopted 37 rural villages, "making them fully self- reliant by providing them fresh drinking water, sanitation facilities, medical facilities, and enhancing their income standards with vocational training and agricultural innovations." Analyst(s): Shae Blood

E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Source of points Distribution of points

E 96 E 69 ESA 52 42% 34 33 S 14 S Bharat Petroleum SSA 58% EI ER EP SI SR SP 0 255075 Environmental Intent Question Category Score Max Score % General Comment Accountability 414 00Excellent Management 788 8Excellent Policy 10 10 100 Excellent Vision 414 00Excellent Environmental Reporting Question CategoryScore Max Score % General Comment Emissions to air 13 77 17 Needs substantial improvement Emissions to water 0021 Needs substantial improvement Energy 6414 3Needs improvement Management 27 56 48 Needs improvement Materials usage 347 3Needs improvement Recycling 4121 9Needs substantial improvement Waste 7228 5Needs improvement Water 577 1Good Social Intent Question CategoryScore Max Score % General Comment Accountability 254 0Good Management 4410 0Needs improvement Policy 616 00Excellent Social Demographic 212 00Excellent Vision 414 00Excellent Social Reporting Question CategoryScore Max Score % General Comment Human Rights 28 77 36 Needs improvement Management 007 Needs substantial improvement Qualitative Social 31 42 74 Good Quantitative Social 23 56 41 Needs improvement

www.roberts.cmc.edu 33 Petroleum Refining Sector BP BP 2008 Sustainability Review, Code of Conduct, and B- 2009 Web Pages

BP proclaims itself to be the “first global energy company to call for action publicly over climate change”. However, it seems to be more focused on pushing governments and the industry to change their emissions policies than willing to lead potentially costly changes. Ernst and Young, whose critical comments were present throughout BP’s sustainability report, noted that BP is lacking environmental performance targets. BP even admits that its previous “commitment” to end climate change was weak. Under the headline “BP’s climate commitment”, BP wrote, “(i)n 2002 we committed that any increase in our operational GHG emissions by 2012 would be less than the benefits of our low carbon products”. It goes on to say: “During 2008 we confirmed that our performance was on track to deliver this commitment but we determined that linking operational and low-carbon energy activities was no longer practical or useful”. BP’s report is also ambiguous in parts. Its HSE fines are lumped together, so there is no differentiating between environmental fines and health and safety fines. BP’s claim that its goal is to cause “no damage to the environment” is not specific enough—that is clearly not its only goal as a business. If discussed in further depth, BP’s “target neutral” initiative might be considered an environmental education initiative. Though BP states that it is updating its environmental requirements for new projects to include “social indicators”, it fails to mention if this will actually make the requirements more stringent. BP has a questionable new initiative to perform individual reporting at each site for every chemical except for carbon, which will still be reported holistically. I am concerned that way of reporting will make comparisons with others in the sector more difficult. Analyst(s): Ashley Scott

E 77 ESA E 50 47 35 30 S 49% S 15 BP SSA 51% EI ER EP SI SR SP 0 255075 Environmental Intent Question Category Score Max Score % General Comment Accountability 414 00Excellent Management 788 8Excellent Policy 7710 0Good Vision 254 0Good Environmental Reporting Question CategoryScore Max Score % General Comment Emissions to air 29 77 38 Needs improvement Emissions to water 3121 4Needs substantial improvement Energy 6414 3Needs improvement Management 25 56 45 Needs improvement Materials usage 227 9Needs improvement Recycling 1521 Needs substantial improvement Waste 8228 9Needs improvement Water 457 7Good Social Intent Question CategoryScore Max Score % General Comment Accountability 374 5Excellent Management 3310 0Needs improvement Policy 616 00Excellent Social Demographic 002 Needs substantial improvement Vision 124 5Needs improvement Social Reporting Question CategoryScore Max Score % General Comment Human Rights 18 77 23 Needs substantial improvement Management 457 7Good Qualitative Social 19 42 45 Needs improvement Quantitative Social 23 56 41 Needs improvement

www.roberts.cmc.edu 34 Petroleum Refining Sector Caltex Australia Caltex Australia 2008 Annual Report and 2009 Web C- Pages

From the time when Caltex Australia published its 2004 Environment, Health, Safety and Community Report, sustainability reporting has been expanded to cover major environmental issues in depth, such as energy efficiency and greenhouse gas emissions. Now Caltex Australia includes a chapter on sustainability in its annual report. The website also includes a report on alternative energy assessments and carbon disclosure project report. Although a code of conduct is found, there is no human rights discussion. Much of the reporting is highly correlated to the international trade and government mandated expectations, but it needs to demonstrate more of its own aspiration of sustainability, more reporting on historical quantitative data, strategies for improvements, and discussions on pressing issues and current challenges faced by the company. Analyst(s): Karina Gomez

E 54 E ESA 38 28 37% 18 S 13 S 3 Caltex Australia SSA 63% EI ER EP SI SR SP 0 255075 Environmental Intent Question Category Score Max Score % General Comment Accountability 254 0Good Management 228 5Needs improvement Policy 3310 0Needs improvement Vision 374 5Excellent Environmental Reporting Question CategoryScore Max Score % General Comment Emissions to air 5770 Needs substantial improvement Emissions to water 0021 Needs substantial improvement Energy 4214 9Needs improvement Management 19 56 34 Needs improvement Materials usage 007 Needs substantial improvement Recycling 2121 0Needs substantial improvement Waste 0028 Needs substantial improvement Water 117 4Needs substantial improvement Social Intent Question CategoryScore Max Score % General Comment Accountability 414 00Excellent Management 3310 0Needs improvement Policy 586 3Excellent Social Demographic 002 Needs substantial improvement Vision 254 0Good Social Reporting Question CategoryScore Max Score % General Comment Human Rights 8177 0Needs substantial improvement Management 007 Needs substantial improvement Qualitative Social 25 42 60 Good Quantitative Social 9156 6Needs substantial improvement

www.roberts.cmc.edu 35 Petroleum Refining Sector Calumet Specialty Calumet Specialty Products 2009 Web Pages D- Products

Calumet Specialty Products’ website contains no references to the environment, community investment, or the health and safety of its employees. With no sustainability report or even an annual report to investors available on its website, Calumet presents no quantitative data at all, and its low score reflects this. A business code of conduct provided some human rights information, but even that was brief. As a result we scored Calumet harshly, and our draft commentary caused Anne Goldsmith, the Marketing Technical Services Director and designer of the Calumet website, to give Professor Morhardt a call. She pointed out that the website was designed primarily as a marketing tool, and to provide some limited information to investors, but certainly not sustainability information. The company is a specialty petroleum refiner producing almost no fuels, but 4000 different kinds of oils and waxes, ranging from those used in transformers to ones suitable for transparent candles. It seemed inappropriate to her that, we would be comparing Calumet to the likes of BP, and in any event, she is happy to provide some of the information we could use to score if we did not require it to be on the website (which, however, we do). For our part, we think that any $2.1 billion company, whether recently public as Calumet is, or even still private, ought to be significantly more transparent on its website. Sooner or later, its larger clients are going to push greater environmental and social transparency down the supply chain. Since Calumet apparently has much of the information we would utilize, and is willing to provide it privately, making it publicly available would not only be a small jump, it would also show some leadership. Analyst(s): Erin Franks

E E 4% 12 12 ESA S Calumet Specialty 0 1 0 0 SSA S Products 96% EI ER EP SI SR SP 0 255075 Environmental Intent Question Category Score Max Score % General Comment Accountability 004 Needs substantial improvement Management 008 Needs substantial improvement Policy 0010 Needs substantial improvement Vision 004 Needs substantial improvement Environmental Reporting Question CategoryScore Max Score % General Comment Emissions to air 1177 Needs substantial improvement Emissions to water 0021 Needs substantial improvement Energy 0014 Needs substantial improvement Management 0056 Needs substantial improvement Materials usage 007 Needs substantial improvement Recycling 0021 Needs substantial improvement Waste 0028 Needs substantial improvement Water 007 Needs substantial improvement Social Intent Question CategoryScore Max Score % General Comment Accountability 004 Needs substantial improvement Management 0010 Needs substantial improvement Policy 236 3Needs improvement Social Demographic 152 0Good Vision 004 Needs substantial improvement Social Reporting Question CategoryScore Max Score % General Comment Human Rights 15 77 19 Needs substantial improvement Management 007 Needs substantial improvement Qualitative Social 0042 Needs substantial improvement Quantitative Social 0056 Needs substantial improvement

www.roberts.cmc.edu 36 Petroleum Refining Sector Cepsa Cepsa 2007 Summary Corporate Responsibility B- Report and 2009 Web Pages

CEPSA’s 2007 Summary Corporate Responsibility Report shows that the company is committed to complying with environmental regulations, but it does not demonstrate a genuine desire to protect the environment beyond what is required by law. To illustrate, the report presents the company’s commitment to maintaining a stable energy supply and adding value to its products first, and only includes any information on the environment at the end. Throughout the report, CEPSA offers its opinion on various environmental regulations, and the tone is decidedly hostile towards reform. To CEPSA’s credit, it presents detailed environmental and social data in many areas, but omits the most recent data in others. CEPSA performs extensive screening of its suppliers for environmental, social, and human rights standards. In addition, it has elected to participate in initiatives such as the Chemical Industry’s Commitment to Progress, the UN Global Compact, and the UN Millennium Development Goals. A large percentage of CEPSA’s employees are represented by unions, and CEPSA shows a dedication to providing occupational health and safety training to lower its accident rate. CEPSA’s main priority, however, appears to be generating profit for the company, and it is not clear if the company’s commitment to sustainability is part of its true mission or simply a gesture made to comply with regulations Analyst(s): Erin Franks Whitney Ellen Dawson

E 81 ESA 62 E 41 32 S 48% S 25 21 Cepsa SSA 52% EI ER EP SI SR SP 0 255075 Environmental Intent Question Category Score Max Score % General Comment Accountability 374 5Excellent Management 818 00Excellent Policy 6610 0Good Vision 414 00Excellent Environmental Reporting Question CategoryScore Max Score % General Comment Emissions to air 29 70 41 Needs improvement Emissions to water 0021 Needs substantial improvement Energy 5314 6Needs improvement Management 16 56 29 Needs improvement Materials usage 007 Needs substantial improvement Recycling 6221 9Needs improvement Waste 8228 9Needs improvement Water 457 7Good Social Intent Question CategoryScore Max Score % General Comment Accountability 124 5Needs improvement Management 6610 0Good Policy 466 7Good Social Demographic 152 0Good Vision 414 00Excellent Social Reporting Question CategoryScore Max Score % General Comment Human Rights 26 77 34 Needs improvement Management 007 Needs substantial improvement Qualitative Social 19 42 45 Needs improvement Quantitative Social 17 56 30 Needs improvement

www.roberts.cmc.edu 37 Petroleum Refining Sector Chevron Chevron 2008 Corporate Responsibility Report and B 2010 Web Pages

Chevron’s 2008 Corporate Responsibility Report is clear and detailed. The company’s commitment to improving its already thorough environmental and social sustainability reporting is seen in the reports’ stated goals. The 2008 report describes Chevron’s many practices to improve health, education, and economics for the local communities in which it works. The report also displays the company’s numerical information on greenhouse gas emissions, environmental and social investments, and health and safety incidents. The company fulfilled most of the PSI requirements in each area of quantitative reporting. To increase the transparency of its reporting, Chevron could compare more of its statistics to overall industry statistics. The 2008 report states significant initiatives Chevron has planned to improve its next Corporate Responsibility Report, such as including total waste and water usage metrics. The company could also consider improving its Code of Conduct by including additional details on its human rights policies and by describing the monitoring measures the company utilizes to track employee compliance. Overall the 2008 report effectively exhibits Chevron’s desire to decrease its damaging environmental performances, to improve local communities, and to ensure the safety and upwards development of all its employees. Analyst(s): Jennifer Katelyn Ward

E 88 85 E ESA 37% 53 S 29 31 S 11 Chevron SSA 63% EI ER EP SI SR SP 0 255075 Environmental Intent Question Category Score Max Score % General Comment Accountability 374 5Excellent Management 818 00Excellent Policy 8810 0Excellent Vision 414 00Excellent Environmental Reporting Question CategoryScore Max Score % General Comment Emissions to air 17 77 22 Needs substantial improvement Emissions to water 4121 9Needs substantial improvement Energy 6414 3Needs improvement Management 20 56 36 Needs improvement Materials usage 347 3Needs improvement Recycling 3121 4Needs substantial improvement Waste 1428 Needs substantial improvement Water 007 Needs substantial improvement Social Intent Question CategoryScore Max Score % General Comment Accountability 414 00Excellent Management 8810 0Excellent Policy 616 00Excellent Social Demographic 002 Needs substantial improvement Vision 414 00Excellent Social Reporting Question CategoryScore Max Score % General Comment Human Rights 29 77 38 Needs improvement Management 717 00Excellent Qualitative Social 24 42 57 Good Quantitative Social 23 56 41 Needs improvement

www.roberts.cmc.edu 38 Petroleum Refining Sector China National China National Petroleum (CNPC) 2008 Corporate Social Responsibility Report, Responsibility C- Petroleum Brochure, 2008 Annual Report, CNPC Profile, and 2009 web pages China National Petroleum Corporation (CNPC) is one of the top producing and supplying gas and oil companies in China with a focus on exploration and exporting petroleum, both nationally and internationally. CNPC does a satisfactory job of addressing and implementing some responsibility in both of these sectors of its manufacturing processes. The CSR and other company reports indicate that CNPC has an immediate interest in the safety and management of its employees. To further stress the importance of its employees’ well-being, the company has implemented ten management systems and initiated intensive investigations to ensure that efficiency and safety are not compromised. Heavy investments in safety projects and management systems have resulted in a decrease of industrial accidents and fatalities by 13.8% and 25% respectively between 2007 and 2008. CNPC’s adoption of a cohesive emergency response system has allowed it to avoid causalities and accidents in natural disasters such as the catastrophic Sichuan earthquake in 2008, where it reported no accidents or secondary disasters. Combating climate change is overtly the primary focus of CNPC’s reporting and there are many side projects and suggestions found in the CSR such as investing in science and technology, including dealing with point source pollution, improving clean production, and biologically sequestering carbon dioxide. While CNPC has many of these of these side projects, it fails to make any of them come to full fruition through the establishment any formal official policies. This causes the company’s total environmental vision to come out of focus due to a lack of environmental management and regulated policy. However, the company does report a major drop in water pollution as a result of heavy investment in ten pollution reduction projects; oil discharge dropped 856 metric tons between 2004 and 2008 and COD emissions dropped 7,522 metric tons in the same period. In contrast, sulfur dioxide emissions increased 7,800 metric tons in same time frame. The company addresses social, mainly safety, issues through many small systems that focus on different safety sectors, annually improving production efficiency. While CNPC has managed to reduce some of its environmental emissions through various projects, these projects seem to be disjointed, and lack a central focus and head authority. Analyst(s): Karen Diaz

E 54 E 42 ESA 39% 28 15 S 8 China National S 3 Petroleum SSA 61% EI ER EP SI SR SP 0 255075 Environmental Intent Question Category Score Max Score % General Comment Accountability 004 Needs substantial improvement Management 458 0Good Policy 8810 0Excellent Vision 254 0Good Environmental Reporting Question CategoryScore Max Score % General Comment Emissions to air 7977 Needs substantial improvement Emissions to water 1521 Needs substantial improvement Energy 4214 9Needs improvement Management 6156 1Needs substantial improvement Materials usage 007 Needs substantial improvement Recycling 2121 0Needs substantial improvement Waste 5128 8Needs substantial improvement Water 117 4Needs substantial improvement Social Intent Question CategoryScore Max Score % General Comment Accountability 254 0Good Management 4410 0Needs improvement Policy 356 0Good Social Demographic 002 Needs substantial improvement Vision 254 0Good Social Reporting Question CategoryScore Max Score % General Comment Human Rights 12 77 16 Needs substantial improvement Management 007 Needs substantial improvement Qualitative Social 15 42 36 Needs improvement Quantitative Social 11 56 20 Needs substantial improvement

www.roberts.cmc.edu 39 Petroleum Refining Sector C+ ConocoPhillips ConocoPhillips 2009 web pages

Conoco recently made the decision to publish its 2008 Sustainability Report on its website. The website is very well organized, but the environmental data, while easily accessible, are not contained in a separate downloadable Sustainability Report, which would make the information far easier to read. Conoco Phillips was named to the Dow Jones Sustainability Index in 2009. The information on its environmental policies is well structured, with a clear written policy concerning biodiversity, climate change, sustainable development, and water sustainability. Conoco Phillips has much less information on human rights and the treatment of employees. For example, there is no commitment to opposing corporal punishment and compulsory labor, and it does not support with concrete actions or a monitoring system its commitments to maintaining fair working hours and eliminating child labor. Conoco Phillip’s policy regarding water sustainability focuses more on improving water quality than minimizing or conserving the total amount of water used in its operations. Conoco also does not specify the number of accidental spills released to water, an important factor in considering Conoco’s overall impact to water quality. Employee volunteerism is highly encouraged in Conoco, with many grants available by application. Conoco claims significant investment into development of green technologies. All of these factors portray the development of an environmental conscience in Conoco Phillips. Analyst(s): Danielle L. Manning

E 65 ESA 50 40% 46 S 28 S 8 12 ConocoPhillips SSA 60% EI ER EP SI SR SP 0 255075 Environmental Intent Question Category Score Max Score % General Comment Accountability 124 5Needs improvement Management 458 0Good Policy 8810 0Excellent Vision 414 00Excellent Environmental Reporting Question CategoryScore Max Score % General Comment Emissions to air 17 77 22 Needs substantial improvement Emissions to water 0021 Needs substantial improvement Energy 4214 9Needs improvement Management 17 56 30 Needs improvement Materials usage 007 Needs substantial improvement Recycling 3121 4Needs substantial improvement Waste 7228 5Needs improvement Water 227 9Needs improvement Social Intent Question CategoryScore Max Score % General Comment Accountability 004 Needs substantial improvement Management 3310 0Needs improvement Policy 586 3Excellent Social Demographic 002 Needs substantial improvement Vision 414 00Excellent Social Reporting Question CategoryScore Max Score % General Comment Human Rights 32 77 42 Needs improvement Management 347 3Needs improvement Qualitative Social 19 42 45 Needs improvement Quantitative Social 14 56 25 Needs improvement

www.roberts.cmc.edu 40 Petroleum Refining Sector Cosmo Oil Cosmo Oil 2009 Sustainability Report and 2009 Web B- Pages

Cosmo Oil articulates its approach to reducing environmental impacts and coping with global warming in its "Living With Our Planet" document. To address ecosystem conservation, it has a Forest Initiative and local cleanup campaigns. Throughout its 2008 sustainability report, it discusses efforts to purchase green products and reduce its CO2 emissions by 1.066 kg each day per employee. Research and development of green technologies such as biomass fuel, solar thermal power generation, hydrogen fuel cells, and GTL technology is evidently taken seriously. Third parties are engaged to audit Cosmo to ensure there are no hidden environmental impacts. Cosmo has explicitly outlined the inputs and outputs in every part of their refining process so that all chemicals, greenhouse gases, and wastewater are accounted for. It has set many goals and deadlines, the most important being the reduction of 10.54% of energy consumption and 1.0% disposal rate by 2008. This company believes it is important to educate staff and the community about the environment and has donated money to develop communities, start arts and nature projects, and fund a Tsunami relief program. Cosmo's code of conduct addresses almost every human rights issue and employees are encouraged to volunteer and create trust with customers. Additionally, the company is implementing safety and training initiatives to achieve a 90% reduction in reportable incidents by 2010. Analyst(s): Jaclyn T. D'Arcy

E E 69 69 ESA 49 42% 30 S 15 S 12 Cosmo Oil SSA 58% EI ER EP SI SR SP 0 255075 Environmental Intent Question Category Score Max Score % General Comment Accountability 254 0Good Management 788 8Excellent Policy 6610 0Good Vision 374 5Excellent Environmental Reporting Question CategoryScore Max Score % General Comment Emissions to air 8177 0Needs substantial improvement Emissions to water 1521 Needs substantial improvement Energy 7514 0Good Management 23 56 41 Needs improvement Materials usage 007 Needs substantial improvement Recycling 7321 3Needs improvement Waste 9328 2Needs improvement Water 347 3Needs improvement Social Intent Question CategoryScore Max Score % General Comment Accountability 414 00Excellent Management 6610 0Good Policy 466 7Good Social Demographic 212 00Excellent Vision 254 0Good Social Reporting Question CategoryScore Max Score % General Comment Human Rights 20 77 26 Needs improvement Management 687 6Excellent Qualitative Social 31 42 74 Good Quantitative Social 7156 3Needs substantial improvement

www.roberts.cmc.edu 41 Petroleum Refining Sector B+ CPC CPC Sustainability Report and 2009 Web Pages

The Chinese Petroleum Corporation (CPC) based in Taiwan, has sustainable development information covering environmental and social topics online and a 68-page 2009 CSR report. The content of the CSR report follows the G3 GRI guidelines. The depth of social reporting surpasses that of environmental reporting, both on the website and in the report, and there is significantly more qualitative description than quantitative data. However, the reporting of safety management and pollution prevention is quite impressive. Quantitative environmental data and human rights reporting are definitely areas on which CPC can focus to increase its current PSI score in its future reports. Analyst(s): Gracie Beck Bukola Jimoh

E 100 85 E ESA 56 40% 36 40 S 14 S CPC SSA 60% EI ER EP SI SR SP 0 255075 Environmental Intent Question Category Score Max Score % General Comment Accountability 414 00Excellent Management 818 00Excellent Policy 10 10 100 Excellent Vision 414 00Excellent Environmental Reporting Question CategoryScore Max Score % General Comment Emissions to air 21 77 27 Needs improvement Emissions to water 0021 Needs substantial improvement Energy 6414 3Needs improvement Management 22 56 39 Needs improvement Materials usage 007 Needs substantial improvement Recycling 7321 3Needs improvement Waste 8228 9Needs improvement Water 457 7Good Social Intent Question CategoryScore Max Score % General Comment Accountability 254 0Good Management 10 10 100 Excellent Policy 466 7Good Social Demographic 212 00Excellent Vision 414 00Excellent Social Reporting Question CategoryScore Max Score % General Comment Human Rights 40 77 52 Good Management 717 00Excellent Qualitative Social 31 42 74 Good Quantitative Social 16 56 29 Needs improvement

www.roberts.cmc.edu 42 Petroleum Refining Sector D- CVR Energy CVR Energy 2008 Annual Report and 2009 Web Pages

Apart from a brief code of ethics, the only sustainability issues that CVR Energy’s website includes are short sections for “Community Involvement” and “Environment & Safety.” Both Web pages are cursory, vague, and terse. In the section on community, CVR does mention support for large, national charities, but does not indicate any type of contribution. Similarly, CVR suggests that its employees contribute time and money to charitable causes; however no initiatives or examples are given. Overall, CVR Energy’s website does not address any environmental issues and barely touches on social ones. Even information regarding employee safety and rights is brief and underreported. Analyst(s): Bukola Jimoh

E E 19 6% ESA 7 S 4 0 0 0 CVR Energy SSA S 94% EI ER EP SI SR SP 0 255075 Environmental Intent Question Category Score Max Score % General Comment Accountability 004 Needs substantial improvement Management 008 Needs substantial improvement Policy 0010 Needs substantial improvement Vision 124 5Needs improvement Environmental Reporting Question CategoryScore Max Score % General Comment Emissions to air 0077 Needs substantial improvement Emissions to water 0021 Needs substantial improvement Energy 0014 Needs substantial improvement Management 0056 Needs substantial improvement Materials usage 007 Needs substantial improvement Recycling 0021 Needs substantial improvement Waste 0028 Needs substantial improvement Water 007 Needs substantial improvement Social Intent Question CategoryScore Max Score % General Comment Accountability 124 5Needs improvement Management 0010 Needs substantial improvement Policy 236 3Needs improvement Social Demographic 002 Needs substantial improvement Vision 254 0Good Social Reporting Question CategoryScore Max Score % General Comment Human Rights 2377 Needs substantial improvement Management 007 Needs substantial improvement Qualitative Social 6142 4Needs substantial improvement Quantitative Social 1256 Needs substantial improvement

www.roberts.cmc.edu 43 Petroleum Refining Sector A- Eni ENI 2009 Annual Report and 2010 Web Pages

Eni makes a concerted effort to improve its sustainability, as demonstrated by lengthy statements, including an extensive interview, with Eni’s CEO, Paolo Scaroni, in the 2008 Annual Report. In the 2009 report, this section is replaced with a discussion between him and Jeffrey D. Sachs, the father of Millenium Development Goals, bringing more weight to the the entire report. In the 2008 report, Scaroni discusses Eni’s specific sustainability challenges, such as investing in research and development of clean energy sources during current economic hardship, and Eni’s transition from oil to integrated energy, concentrating on solar energy, methane, and natural gas. This is a common theme among many oil companies, and it is especially pertinent for ENI as Scaroni notes that “2 out of every 3 houses in Europe are heated using natural gas.” Emblematic of this transition is Eni’s current partnership with MIT and the collaborative 5-year program, “Solar Frontier Research Program,” which includes an Eni-MIT Energy Fellows program that encourages MIT graduate students to partner with ENI in the field of energy research. Despite this, Eni could improve on its reporting of specific data pertaining to environmental impact. Eni does have a data table for some environmental information, the clearest and preferred method of reporting data, but the table could be more extensive. Like sustainability, Eni does a commendable job of demonstrating a commitment to social issues, specifically the treatment of its employees. However, in the 2009 report, the focus shifts to more global efforts, particularly in Africa continent, both in energy development and sustainability management. In 2008, Eni conducted its first employee satisfaction survey, “Secondo Te” (According to You), that highlighted areas of improvement for the company. Specifically, Eni sought to improve communication among employees, especially employees outside of Italy, and extended the MyEni informational outlet to 4,000 non-Italian employees. Lengthy discussion was also given to “the most serious accident in the company’s history” that led to the fatalities of 4 people, in which specific remediation efforts were demonstrated. The commitment to sustainability and fair treatment and respect of its workforce is prevalent in Eni’s reporting, but there still remains room for improvement. Analyst(s): Allison Scott Elgeritte Adidjaja

E 96 81 E 65 ESA 50 41% 43 S 30 S Eni SSA 59% EI ER EP SI SR SP 0 255075 Environmental Intent Question Category Score Max Score % General Comment Accountability 414 00Excellent Management 788 8Excellent Policy 10 10 100 Excellent Vision 414 00Excellent Environmental Reporting Question CategoryScore Max Score % General Comment Emissions to air 21 70 30 Needs improvement Emissions to water 5221 4Needs substantial improvement Energy 4214 9Needs improvement Management 39 56 70 Good Materials usage 007 Needs substantial improvement Recycling 5221 4Needs substantial improvement Waste 9328 2Needs improvement Water 457 7Good Social Intent Question CategoryScore Max Score % General Comment Accountability 414 00Excellent Management 7710 0Good Policy 616 00Excellent Social Demographic 002 Needs substantial improvement Vision 414 00Excellent Social Reporting Question CategoryScore Max Score % General Comment Human Rights 55 77 71 Good Management 347 3Needs improvement Qualitative Social 29 42 69 Good Quantitative Social 24 56 43 Needs improvement

www.roberts.cmc.edu 44 Petroleum Refining Sector Exxon Mobil Exxon Mobil 2009 Corporate Citizenship Report and B+ 2010 Web Pages

Exxon Mobil’s 2009 Corporate Citizenship report focuses on energy conservation, emission reduction, and human rights issues. Compared to the previous report, this report is more organized and more direct in stating bottom line issues and performance. The reporting of explicit goals could be further enhanced, but the report's overall coverage is thorough. It has a global viewpoint and uses case studies and examples to effectively portray sustainability initiatives worldwide. Most quantitative data are not given in the context of industry standards or some type of relevant benchmark which would convey a more in-depth perspective of performance. Human rights reporting is excellent, complete with the statement of formal adoption of policy or standard, actions to reinforce policy, and description of monitoring measures, but lacking substantiating numerical data. The addition of contextual information, more quantitative facts, and explicit goals would raise Exxon's score in the future. Analyst(s): Eric Robert King Elgeritte Adidjaja

E 85 E 81 ESA 63 38% 37 38 S 19 S Exxon Mobil SSA 62% EI ER EP SI SR SP 0 255075 Environmental Intent Question Category Score Max Score % General Comment Accountability 414 00Excellent Management 568 3Good Policy 8810 0Excellent Vision 414 00Excellent Environmental Reporting Question CategoryScore Max Score % General Comment Emissions to air 28 70 40 Needs improvement Emissions to water 4121 9Needs substantial improvement Energy 7514 0Good Management 17 56 30 Needs improvement Materials usage 347 3Needs improvement Recycling 4121 9Needs substantial improvement Waste 3128 1Needs substantial improvement Water 457 7Good Social Intent Question CategoryScore Max Score % General Comment Accountability 414 00Excellent Management 8810 0Excellent Policy 616 00Excellent Social Demographic 002 Needs substantial improvement Vision 414 00Excellent Social Reporting Question CategoryScore Max Score % General Comment Human Rights 50 77 65 Good Management 347 3Needs improvement Qualitative Social 27 42 64 Good Quantitative Social 21 56 38 Needs improvement

www.roberts.cmc.edu 45 Petroleum Refining Sector Formosa Formosa Petrochemical 2008 Plastics Group Annual Report, 2007 Annual Report and 2009 Web Pages D Petrochemical

The 2008 Formosa Plastics Group Annual Report contains a segment on Formosa Petrochemical, and the 2007 Annual Report, and 2009 Web pages also highlight Formosa’s social and environmental sustainability; however, analysis of these documents reveals little social and environmental information. Much of Formosa’s social reporting pertains to Formosa’s Plastics Group and not to Formosa’s Petrochemical Group. While Formosa mentions basic environmental information such as an environmental visionary statement, environmental management, and a brief segment on R&D technologies and environmental expenses, it does not include further environmental reporting such as consumption, emissions, recycling, and waste. Also, Formosa notes the importance of employee safety and training, yet no further information is given. FPCC also notes that it has effectively conserved energy, reduced waste, and seeks to improve facilities for better water conservation, but provides no further information or data to supplement these statements. Analyst(s): Karina Gomez

E 42 ESA S E 19 S 38% 7 5 5 Formosa 62% 2 SSA Petrochemical EI ER EP SI SR SP 0 255075 Environmental Intent Question Category Score Max Score % General Comment Accountability 254 0Good Management 458 0Good Policy 1110 0Needs substantial improvement Vision 414 00Excellent Environmental Reporting Question CategoryScore Max Score % General Comment Emissions to air 1177 Needs substantial improvement Emissions to water 0021 Needs substantial improvement Energy 1714 Needs substantial improvement Management 10 56 18 Needs substantial improvement Materials usage 007 Needs substantial improvement Recycling 0021 Needs substantial improvement Waste 0028 Needs substantial improvement Water 347 3Needs improvement Social Intent Question CategoryScore Max Score % General Comment Accountability 374 5Excellent Management 2210 0Needs substantial improvement Policy 006 Needs substantial improvement Social Demographic 002 Needs substantial improvement Vision 004 Needs substantial improvement Social Reporting Question CategoryScore Max Score % General Comment Human Rights 0077 Needs substantial improvement Management 007 Needs substantial improvement Qualitative Social 6142 4Needs substantial improvement Quantitative Social 2456 Needs substantial improvement

www.roberts.cmc.edu 46 Petroleum Refining Sector Frontier Oil Frontier Oil 2008 Annual Report and 2009 Web D Pages

Frontier Oil presents almost no environmental or social sustainability information on its website. The only mention made about the environment is a detailed accounting in the 2008 Annual Report of the substantial expenses Frontier Oil has incurred to comply with federal regulations and the numerous environmental fines and lawsuits it faces. From the tone of the report, it appears that Frontier Oil does not care about the environment and only complies with regulations when it is forced to do so by law. The website contains absolutely no information on community relations, and the only mention made of business ethics is a cursory Code of Business Conduct and Ethics. Frontier Oil does not produce a sustainability report, and the company appears to disregard the environment and society by its complete silence on these subjects. Even for a smaller company, Frontier Oil’s sustainability reporting is feeble and a disgrace to the company. Analyst(s): Erin Franks

E 23 ESA E 13 44% 9 12 S S 4 0 Frontier Oil SSA 56% EI ER EP SI SR SP 0 255075 Environmental Intent Question Category Score Max Score % General Comment Accountability 374 5Excellent Management 228 5Needs improvement Policy 1110 0Needs substantial improvement Vision 004 Needs substantial improvement Environmental Reporting Question CategoryScore Max Score % General Comment Emissions to air 3470 Needs substantial improvement Emissions to water 0021 Needs substantial improvement Energy 0014 Needs substantial improvement Management 10 56 18 Needs substantial improvement Materials usage 007 Needs substantial improvement Recycling 0021 Needs substantial improvement Waste 2728 Needs substantial improvement Water 007 Needs substantial improvement Social Intent Question CategoryScore Max Score % General Comment Accountability 254 0Good Management 0010 Needs substantial improvement Policy 116 7Needs substantial improvement Social Demographic 002 Needs substantial improvement Vision 004 Needs substantial improvement Social Reporting Question CategoryScore Max Score % General Comment Human Rights 6877 Needs substantial improvement Management 007 Needs substantial improvement Qualitative Social 6142 4Needs substantial improvement Quantitative Social 7156 3Needs substantial improvement

www.roberts.cmc.edu 47 Petroleum Refining Sector D- Galp Energia Galp Energia 2009 Web Pages

Galp Energia did have information about its efforts to reduce global warming, including its efforts to reduce energy consumption. Information on community development and education was not specific and the activities did not seem to be very effective. A description of the board members’ duties is not sufficient for the code of conduct, and the social responsibility statements did not include human rights reporting. No other information was available. Analyst(s): Jaclyn T. D'Arcy

E E 23 ESA 15 30% 12 S 5 4 S 0 Galp Energia SSA 70% EI ER EP SI SR SP 0 255075 Environmental Intent Question Category Score Max Score % General Comment Accountability 004 Needs substantial improvement Management 008 Needs substantial improvement Policy 2210 0Needs substantial improvement Vision 254 0Good Environmental Reporting Question CategoryScore Max Score % General Comment Emissions to air 3477 Needs substantial improvement Emissions to water 0021 Needs substantial improvement Energy 2114 4Needs substantial improvement Management 3556 Needs substantial improvement Materials usage 007 Needs substantial improvement Recycling 0021 Needs substantial improvement Waste 0028 Needs substantial improvement Water 007 Needs substantial improvement Social Intent Question CategoryScore Max Score % General Comment Accountability 124 5Needs improvement Management 2210 0Needs substantial improvement Policy 236 3Needs improvement Social Demographic 002 Needs substantial improvement Vision 124 5Needs improvement Social Reporting Question CategoryScore Max Score % General Comment Human Rights 2377 Needs substantial improvement Management 007 Needs substantial improvement Qualitative Social 14 42 33 Needs improvement Quantitative Social 1256 Needs substantial improvement

www.roberts.cmc.edu 48 Petroleum Refining Sector GS Holdings GS Holdings Sustainability Report and 2009 Web F Pages

GS Holdings has no relevant information on its web pages. The website is primarily in North Korean, so perhaps the information regarding sustainability and human rights is in the non-English section. Analyst(s): Allison Scott

E SE 1% ESA 1% S 0 0 0 0 0 0 GS Holdings SSA EI ER EP SI SR SP 0 255075 Environmental Intent Question Category Score Max Score % General Comment Accountability 004 Needs substantial improvement Management 008 Needs substantial improvement Policy 0010 Needs substantial improvement Vision 004 Needs substantial improvement Environmental Reporting Question CategoryScore Max Score % General Comment Emissions to air 0077 Needs substantial improvement Emissions to water 0021 Needs substantial improvement Energy 0014 Needs substantial improvement Management 0056 Needs substantial improvement Materials usage 007 Needs substantial improvement Recycling 0021 Needs substantial improvement Waste 0028 Needs substantial improvement Water 007 Needs substantial improvement Social Intent Question CategoryScore Max Score % General Comment Accountability 004 Needs substantial improvement Management 0010 Needs substantial improvement Policy 006 Needs substantial improvement Social Demographic 002 Needs substantial improvement Vision 004 Needs substantial improvement Social Reporting Question CategoryScore Max Score % General Comment Human Rights 0077 Needs substantial improvement Management 007 Needs substantial improvement Qualitative Social 0042 Needs substantial improvement Quantitative Social 0056 Needs substantial improvement

www.roberts.cmc.edu 49 Petroleum Refining Sector Hess Hess 2008 Environment, Health and Safety Report, Greenhouse Gas Inventory Protocol, Material B- Safety Data Sheets and 2009 Web Pages Hess does an adequate job at reporting on sustainability and human rights issues. The website has an entire section devoted to the environment, health, safety, and social responsibility, which makes it easy to navigate and find relevant information. Hess also has a thorough annual report on the environment, and health and safety, an entire report regarding greenhouse gas protocol, and extensive material safety data sheets. These data sheets are particularly useful to employees, as each sheet outlines the specific health risks and potential dangers of certain chemicals, detailing thorough instructions about what to do in case of human contact, and Hess also makes available a 24 hour phone number for employees to use in case of emergency. Another bright point of the reporting is the detailed community work the company has done. Hess has worked extensively on Hurricane Ike Relief. This commitment is shared by the entire company, as many of Hess’ employees have participated in the project. In spite of this, Hess has room for improvement. A questionable aspect is Hess’ radical decline in environmental investments, decreasing from 71 million dollars in 2006 to 15 million dollars in 2008. Hess has no account as to why there is such a dramatic change. While Hess lacks in many specific areas of reporting, the organization and accessibility of its website and reports are commendable. Analyst(s): Allison Scott

E E 69 ESA 58 46 40% 35 S 21 S 3 Hess SSA 60% EI ER EP SI SR SP 0 255075 Environmental Intent Question Category Score Max Score % General Comment Accountability 124 5Needs improvement Management 458 0Good Policy 6610 0Good Vision 414 00Excellent Environmental Reporting Question CategoryScore Max Score % General Comment Emissions to air 25 77 32 Needs improvement Emissions to water 2121 0Needs substantial improvement Energy 5314 6Needs improvement Management 13 56 23 Needs substantial improvement Materials usage 007 Needs substantial improvement Recycling 6221 9Needs improvement Waste 4128 4Needs substantial improvement Water 457 7Good Social Intent Question CategoryScore Max Score % General Comment Accountability 414 00Excellent Management 6610 0Good Policy 466 7Good Social Demographic 002 Needs substantial improvement Vision 414 00Excellent Social Reporting Question CategoryScore Max Score % General Comment Human Rights 20 77 26 Needs improvement Management 227 9Needs improvement Qualitative Social 24 42 57 Good Quantitative Social 24 56 43 Needs improvement

www.roberts.cmc.edu 50 Petroleum Refining Sector Hindustan Hindustan Petroleum 2009 Web Pages C- Petroleum

Hindustan Petroleum operates headquarters in Mumbai, India and produces a variety of gas, oil, and LPG. Although its Web pages provide some sustainability information, they lack quantitative values. Hindustan has tried to spark interest in climate change in its community and seems to be aware of its surrounding environments and ecosystems, but does not report initiative to improve in these areas. Hindustan Petroleum has shown concern for the sustainability of the environment through its green purchases and policies, but falls short in quantifying the improvement of certain emissions in recent years. In addition to the strength in community development and awareness, Hindustan shows a strong dedication to human rights. It ensures equal opportunity and refuses to buy from companies that do not abide by child labor laws. Overall, Hindustan Petroleum states a strong commitment to the progress of the green movement and the social impacts of its practices. To further these strengths, initiatives must be taken to clearly quantify their progress. This will create a more visible progressive direction in its Web pages and lead to greater sustainability. Analyst(s): Kathleen West Austin Prentice Hallett

E 54 E 46 ESA 36% 27 S 11 8 Hindustan S 5 Petroleum SSA 64% EI ER EP SI SR SP 0 255075 Environmental Intent Question Category Score Max Score % General Comment Accountability 374 5Excellent Management 568 3Good Policy 4410 0Needs improvement Vision 254 0Good Environmental Reporting Question CategoryScore Max Score % General Comment Emissions to air 5677 Needs substantial improvement Emissions to water 3121 4Needs substantial improvement Energy 6414 3Needs improvement Management 3556 Needs substantial improvement Materials usage 007 Needs substantial improvement Recycling 0021 Needs substantial improvement Waste 4128 4Needs substantial improvement Water 007 Needs substantial improvement Social Intent Question CategoryScore Max Score % General Comment Accountability 254 0Good Management 3310 0Needs improvement Policy 466 7Good Social Demographic 002 Needs substantial improvement Vision 374 5Excellent Social Reporting Question CategoryScore Max Score % General Comment Human Rights 18 77 23 Needs substantial improvement Management 347 3Needs improvement Qualitative Social 11 42 26 Needs improvement Quantitative Social 6156 1Needs substantial improvement

www.roberts.cmc.edu 51 Petroleum Refining Sector D- Holly Holly 2008 Annual Report and 2009 Web Pages

Holly Corporation presents very little information on environmental or social responsibility in its 2008 Annual Report and 2009 company web pages. While committing to minimizing environmental impacts in the first page of its annual report, there is no information following to demonstrate how it accomplishes this mission, and there is no sustainability report or any environmental quantitative data. Petroleum refining can have profound impacts on air, water and soil quality, yet none of these effects is reported. While Holly does a better job reporting social policy and intent, it is still seriously lacking. A Code of Business Conduct and Ethics is outlined in Holly’s web pages, but measures to reinforce and monitor these policies are not reported, nor are any social quantitative data presented to support the company’s claimed dedication to safety and corporate citizenship. Analyst(s): Carolyn Campbell

E E 12 % 15 15 15 ESA S 0 0 0 Holly SSA S 88% EI ER EP SI SR SP 0 255075 Environmental Intent Question Category Score Max Score % General Comment Accountability 254 0Good Management 008 Needs substantial improvement Policy 1110 0Needs substantial improvement Vision 124 5Needs improvement Environmental Reporting Question CategoryScore Max Score % General Comment Emissions to air 0077 Needs substantial improvement Emissions to water 0021 Needs substantial improvement Energy 0014 Needs substantial improvement Management 0056 Needs substantial improvement Materials usage 007 Needs substantial improvement Recycling 0021 Needs substantial improvement Waste 0028 Needs substantial improvement Water 007 Needs substantial improvement Social Intent Question CategoryScore Max Score % General Comment Accountability 124 5Needs improvement Management 0010 Needs substantial improvement Policy 236 3Needs improvement Social Demographic 002 Needs substantial improvement Vision 124 5Needs improvement Social Reporting Question CategoryScore Max Score % General Comment Human Rights 14 77 18 Needs substantial improvement Management 007 Needs substantial improvement Qualitative Social 2542 Needs substantial improvement Quantitative Social 0056 Needs substantial improvement

www.roberts.cmc.edu 52 Petroleum Refining Sector B Idemitsu Kosan Idemitsu Kosan 2008 CSR Report and 2009 Web Pages

Though its primary business focus is petroleum and petrochemical products, Idemitsu Kosan recognizes that environmental problems surrounding these industries necessitate a movement towards renewable energy. As a result, it has begun researching and promoting wind power, biogas, and organic light emitting diodes (OLEDs) as new areas of business. This attitude is reflected in the 2008 CSR Report, which focuses on global warming and the need for a low-carbon society. Other environmental issues, such as habitat conservation and recycling are discussed, but not as thoroughly. Though data on pollution and releases are reported for the most recent year, past year data are unavailable for most areas, and the report’s structure is often confusing, with key statistics shown in graphs but not thoroughly discussed, or data given for one sector of business operations but not for another. Socially, Idemitsu Kosan’s reporting suffers due to not making the code of conduct, the "Compliance Handbook," available online. In the area of human rights, the company lost many points because there is no articulation of company policy on issues such as forced or child labor. However, Idemitsu Kosan repeatedly states that it complies with all national regulations, and maintains an extremely safe working environment with no recordable accidents reported in 2007. In addition, the company provides support for the arts and extensive community environmental education programs. Better report formatting and social reporting would improve its sustainability report Analyst(s): Erin Franks

E 92 ESA 69 E 42 S 41 33 S 52% 23 48% Idemitsu Kosan SSA EI ER EP SI SR SP 0 255075 Environmental Intent Question Category Score Max Score % General Comment Accountability 254 0Good Management 818 00Excellent Policy 10 10 100 Excellent Vision 414 00Excellent Environmental Reporting Question CategoryScore Max Score % General Comment Emissions to air 26 70 37 Needs improvement Emissions to water 10 21 48 Needs improvement Energy 7514 0Good Management 22 56 39 Needs improvement Materials usage 347 3Needs improvement Recycling 3121 4Needs substantial improvement Waste 14 28 50 Good Water 227 9Needs improvement Social Intent Question CategoryScore Max Score % General Comment Accountability 374 5Excellent Management 8810 0Excellent Policy 356 0Good Social Demographic 152 0Good Vision 374 5Excellent Social Reporting Question CategoryScore Max Score % General Comment Human Rights 18 77 23 Needs substantial improvement Management 347 3Needs improvement Qualitative Social 21 42 50 Good Quantitative Social 22 56 39 Needs improvement

www.roberts.cmc.edu 53 Petroleum Refining Sector Indian Oil Indian Oil 2007-2008 Sustainability Report and 2009 C+ Web Pages

Indian Oil’s sustainability reporting implies a dedication to environmentally and socially responsible business practices; however important information to support policy claims is not reported. One of the company’s main objectives is to minimize the risk and adverse impact of manufacturing, using, and disposing of its products. Projects to develop renewable energy sources, such as bio-fuel and wind-power, are discussed in the report. Indian Oil has a lower energy index than the industry average in India; however, quantitative data to show this achievement are not reported. The company complies with the Minimal National Standards (MINAS) of India in water use and exceeds these standards in water recycling. Quantitative data to demonstrate Indian Oil’s achievement of MINAS standards are reported for specific plants, but no total for all company operations is included. Total company data were also missing for sulfur oxides, suspended solids, and biochemical oxygen demand. Additional information and data regarding environmental investments, violations, and fines would contribute to a more complete report. Commitment to employees is also implied in the report and web pages, and Indian Oil is currently one of the largest employers of women in India. The company provides training on gender issues for its employees in order to enhance harmony among its workforce. Indian Oil also maintains a diverse workforce profile through reservations for “historically disadvantaged” groups. Actions to reinforce anti-corruption, equal opportunity, free association, and fair compensation were reported. However, the company’s actual Conduct, Discipline and Appeal Rules could not be found in the Web pages or sustainability report. Another area of weakness is in health and safety reporting. No company-wide incident rate is reported, although specific refineries were commended for low incident rates. Information regarding lost workday case rate, serious injuries and health and safety citations and fines is also missing. Analyst(s): Carolyn Campbell

E E ESA 69 65 31% 45 S 17 21 S 3 Indian Oil SSA 69% EI ER EP SI SR SP 0 255075 Environmental Intent Question Category Score Max Score % General Comment Accountability 414 00Excellent Management 458 0Good Policy 6610 0Good Vision 414 00Excellent Environmental Reporting Question CategoryScore Max Score % General Comment Emissions to air 7977 Needs substantial improvement Emissions to water 4121 9Needs substantial improvement Energy 3214 1Needs substantial improvement Management 6156 1Needs substantial improvement Materials usage 007 Needs substantial improvement Recycling 4121 9Needs substantial improvement Waste 3128 1Needs substantial improvement Water 227 9Needs improvement Social Intent Question CategoryScore Max Score % General Comment Accountability 374 5Excellent Management 8810 0Excellent Policy 466 7Good Social Demographic 002 Needs substantial improvement Vision 254 0Good Social Reporting Question CategoryScore Max Score % General Comment Human Rights 45 77 58 Good Management 687 6Excellent Qualitative Social 14 42 33 Needs improvement Quantitative Social 5956 Needs substantial improvement

www.roberts.cmc.edu 54 Petroleum Refining Sector D- Israel Corp. Israel Corp. 2009 Web Pages

The only relevant information Israel Corporation provides on its website, beyond what it presents online, is a brief downloadable community investment report. This community investment report is in Hebrew, and consequently was not considered in the grading because the Roberts Environmental Center only evaluates information presented in English. Also, as the holding company designed to facilitate the transition of Israeli government projects to the private sector, Israel Corporation’s low performance in the PSI Index is representative of the fact that it does not provide detailed enough information about the environmental and social sustainability of the companies it holds. Israel Corporation’s majority stake in most of the companies it owns affords it an influential position in the decisions its holding companies’ managements make. Israel Corporation’s score in the PSI Index could substantially benefit bypresenting information about the sustainability of its subsidiaries involved in renewable resource research and development and other green energy frontiers. Only 5 percent of Israel Corporation's assets are relevant to petroleum and refining. Information regarding Israel Corporation's corporate responsibility in its primary assests in the chemical sector (81% of assets) can be reviewed online: http://www.icl-group.com/. Analyst(s): Michael Handler Shoemaker

E E 23 ESA 37% 12 S 7 S 1 2 0 Israel Corp. SSA 63% EI ER EP SI SR SP 0 255075 Environmental Intent Question Category Score Max Score % General Comment Accountability 124 5Needs improvement Management 008 Needs substantial improvement Policy 3310 0Needs improvement Vision 254 0Good Environmental Reporting Question CategoryScore Max Score % General Comment Emissions to air 0077 Needs substantial improvement Emissions to water 0021 Needs substantial improvement Energy 2114 4Needs substantial improvement Management 1256 Needs substantial improvement Materials usage 007 Needs substantial improvement Recycling 0021 Needs substantial improvement Waste 0028 Needs substantial improvement Water 007 Needs substantial improvement Social Intent Question CategoryScore Max Score % General Comment Accountability 124 5Needs improvement Management 0010 Needs substantial improvement Policy 236 3Needs improvement Social Demographic 002 Needs substantial improvement Vision 004 Needs substantial improvement Social Reporting Question CategoryScore Max Score % General Comment Human Rights 2377 Needs substantial improvement Management 007 Needs substantial improvement Qualitative Social 6142 4Needs substantial improvement Quantitative Social 0056 Needs substantial improvement

www.roberts.cmc.edu 55 Petroleum Refining Sector Lukoil Lukoil 2007-2008 Sustainability Report, 2009 C+ Annual Report, and 2010 Web Pages

Lukoil demonstrates a dedication to sustainable practices and processes in the 2007-2008 Sustainability Report, 2009 Annual Report, and recently viewed company web pages. The company is working to make its products more sustainable, concentrating on its effects on climate change and natural ecosystems. Lukoil focuses on pipeline monitoring and maintenance in order to prevent spills and has implemented an emergency response program in order to mitigate the effects on the surrounding people and environment. Pilot projects for renewable energy sources such as hydropower, wind and solar energy are discussed, but no quantitative data on consumption are provided. The report also focuses on managing and reducing greenhouse gas and CO2 emissions, but does not quantify amounts. Where quantitative data were supplied however, they were extensive, reporting values for at least three years. Data was reported for water use and recycling, waste disposal, and CH4, CO, NOX and SOX emissions. No code of conduct or business ethics was provided. However, Lukoil reported a social code, which discussed fair compensation, forced labor, illegal child labor and free association. Data were provided for the recordable incident rate, however, no unit was specified. Lukoil is active in communities throughout Russia, supporting orphanages, education, healthcare, and local culture. Company activities imply social and environmental reasonability; however, additional information would enhance Lukoil’s reporting. Analyst(s): Carolyn Campbell

E 77 ESA E 58 28 32 S 50% S 20 17 Lukoil SSA 50% EI ER EP SI SR SP 0 255075 Environmental Intent Question Category Score Max Score % General Comment Accountability 124 5Needs improvement Management 788 8Excellent Policy 8810 0Excellent Vision 414 00Excellent Environmental Reporting Question CategoryScore Max Score % General Comment Emissions to air 24 77 31 Needs improvement Emissions to water 1521 Needs substantial improvement Energy 2114 4Needs substantial improvement Management 13 56 23 Needs substantial improvement Materials usage 007 Needs substantial improvement Recycling 3121 4Needs substantial improvement Waste 12 28 43 Needs improvement Water 457 7Good Social Intent Question CategoryScore Max Score % General Comment Accountability 374 5Excellent Management 4410 0Needs improvement Policy 466 7Good Social Demographic 002 Needs substantial improvement Vision 414 00Excellent Social Reporting Question CategoryScore Max Score % General Comment Human Rights 21 77 27 Needs improvement Management 007 Needs substantial improvement Qualitative Social 15 42 36 Needs improvement Quantitative Social 14 56 25 Needs improvement

www.roberts.cmc.edu 56 Petroleum Refining Sector Marathon Oil Marathon Oil 2009 Corporate Social Responsibility A- Report and 2010 Web Pages

Marathon Oil has implemented diversity education and training for employees and managers. It specifically addresses employee upward mobility and says it is constantly surveying employees to improve management and the workplace. Through its sustainability reports and corporate social responsibility reports, Marathon Oil clearly defines its environmental vision. It is also thorough in describing its HSE management structure and Environment Health Safety Impact Assessment studies for new operations. This company has a Global Gas Flaring Reduction Initiative to reduce flaring and venting of associated natural gas, as well as several ongoing initiatives to address climate change, ecosystem conservation, and biodiversity. In Indonesia, Marathon has educated the community by building solar ice houses and biogas reactors to produce cooking oil. In Norway, Marthon’s dual fuel turbine technology is used to lower nitrogen oxides emissions. The company has also been awarded the Energy Star, signifying its research and development of green technologies, and it has reduced pollutant emissions in 2007 to 57,687 tons. Marathon has developed Community Consultation Forums in Indonesia to find problems with education and educate people about energy alternatives. It has also created a malaria control project in Bioko Island. The human rights reporting is illustrated by its many references to the UN Global Compact. Analyst(s): Jaclyn T. D'Arcy Elgeritte Adidjaja

E E 81 75 ESA 65 58 37% 38 S 31 S Marathon Oil SSA 63% EI ER EP SI SR SP 0 255075 Environmental Intent Question Category Score Max Score % General Comment Accountability 374 5Excellent Management 678 5Excellent Policy 10 10 100 Excellent Vision 254 0Good Environmental Reporting Question CategoryScore Max Score % General Comment Emissions to air 29 70 41 Needs improvement Emissions to water 4121 9Needs substantial improvement Energy 8514 7Good Management 34 56 61 Good Materials usage 007 Needs substantial improvement Recycling 1521 Needs substantial improvement Waste 5128 8Needs substantial improvement Water 007 Needs substantial improvement Social Intent Question CategoryScore Max Score % General Comment Accountability 374 5Excellent Management 5510 0Good Policy 616 00Excellent Social Demographic 002 Needs substantial improvement Vision 374 5Excellent Social Reporting Question CategoryScore Max Score % General Comment Human Rights 61 77 79 Excellent Management 717 00Excellent Qualitative Social 39 42 93 Excellent Quantitative Social 20 56 36 Needs improvement

www.roberts.cmc.edu 57 Petroleum Refining Sector MOL Group Mol Hungarian Oil & Gas 2008 Annual Report and A+ 2009 Web Pages

Mol Hungarian Oil & Gas has made strides in the past few years towards being more environmentally and socially responsible with the adoption of the new Mol Group health safety and environment policy in 2005. The Mol Hungarian Oil & Gas 2008 performance data are fairly extensive and cover most of the crucial information necessary to assess Mol Hungarian’s environmental impact. The environmental policy initiatives are clear but not very extensive, but the company is committed to preserving biodiversity and has been participating in a Peregrine falcon protection program. Analyst(s): Danielle L. Manning

E 96 88 E 77 ESA 57 54 43% 31 S S MOL Group SSA 57% EI ER EP SI SR SP 0 255075 Environmental Intent Question Category Score Max Score % General Comment Accountability 414 00Excellent Management 788 8Excellent Policy 10 10 100 Excellent Vision 414 00Excellent Environmental Reporting Question CategoryScore Max Score % General Comment Emissions to air 36 70 51 Good Emissions to water 10 21 48 Needs improvement Energy 8514 7Good Management 29 56 52 Good Materials usage 347 3Needs improvement Recycling 6221 9Needs improvement Waste 15 28 54 Good Water 457 7Good Social Intent Question CategoryScore Max Score % General Comment Accountability 374 5Excellent Management 10 10 100 Excellent Policy 616 00Excellent Social Demographic 212 00Excellent Vision 254 0Good Social Reporting Question CategoryScore Max Score % General Comment Human Rights 67 77 87 Excellent Management 457 7Good Qualitative Social 24 42 57 Good Quantitative Social 30 56 54 Good

www.roberts.cmc.edu 58 Petroleum Refining Sector D+ Murphy Oil Murphy Oil 2008 Annual Report and 2009 Web Pages

Murphy Oil’s 2008 Annual Report and 2009 Web pages contain very little information on the company’s environmental and social activities. Analyst(s): Karina Gomez

E E 50 ESA 28% 31 23 S 12 S 5 0 Murphy Oil SSA 72% EI ER EP SI SR SP 0 255075 Environmental Intent Question Category Score Max Score % General Comment Accountability 254 0Good Management 458 0Good Policy 4410 0Needs improvement Vision 374 5Excellent Environmental Reporting Question CategoryScore Max Score % General Comment Emissions to air 1177 Needs substantial improvement Emissions to water 0021 Needs substantial improvement Energy 0014 Needs substantial improvement Management 7156 3Needs substantial improvement Materials usage 007 Needs substantial improvement Recycling 0021 Needs substantial improvement Waste 0028 Needs substantial improvement Water 007 Needs substantial improvement Social Intent Question CategoryScore Max Score % General Comment Accountability 374 5Excellent Management 2210 0Needs substantial improvement Policy 236 3Needs improvement Social Demographic 152 0Good Vision 004 Needs substantial improvement Social Reporting Question CategoryScore Max Score % General Comment Human Rights 22 77 29 Needs improvement Management 007 Needs substantial improvement Qualitative Social 11 42 26 Needs improvement Quantitative Social 5956 Needs substantial improvement

www.roberts.cmc.edu 59 Petroleum Refining Sector Neste Oil Neste Oil 2009 Environmental Brochure, 2009 C+ Annual Report, and 2010 Web Pages

When Neste Oil website was first reviewed in November 2009, it only had an “Environmental Brochure” available for download and some sustainability Web pages online, but these lacked numerical data, mostly consisting of vague descriptions of a few programs. However, the company added a sustainability section in its 2009 Annual report in early 2010, adding more sustainability reporting and most of the substantial quantitative data. Neste Oil has apparently implemented actual sustainability programs since it has garnered multiple prestigious sustainability awards, and has a goal of creating a greener product with lower emissions. The company monitors and increase its level of safety control by doing observation tours, an action that increase transparency not only on paper, but also in action. Analyst(s): Leah Bross

E E ESA 69 38% 50 44 S 24 17 S 5 Neste Oil SSA 62% EI ER EP SI SR SP 0 255075 Environmental Intent Question Category Score Max Score % General Comment Accountability 414 00Excellent Management 458 0Good Policy 7710 0Good Vision 374 5Excellent Environmental Reporting Question CategoryScore Max Score % General Comment Emissions to air 12 77 16 Needs substantial improvement Emissions to water 3121 4Needs substantial improvement Energy 4214 9Needs improvement Management 11 56 20 Needs substantial improvement Materials usage 007 Needs substantial improvement Recycling 0021 Needs substantial improvement Waste 11 28 39 Needs improvement Water 227 9Needs improvement Social Intent Question CategoryScore Max Score % General Comment Accountability 374 5Excellent Management 5510 0Good Policy 356 0Good Social Demographic 002 Needs substantial improvement Vision 254 0Good Social Reporting Question CategoryScore Max Score % General Comment Human Rights 38 77 49 Needs improvement Management 227 9Needs improvement Qualitative Social 15 42 36 Needs improvement Quantitative Social 12 56 21 Needs substantial improvement

www.roberts.cmc.edu 60 Petroleum Refining Sector Nippon Mining Nippon Mining Holdings Sustainability Report and 2009 Web Pages C Holdings

Nippon’s report was well-detailed in most areas but could easily be improved. Nippon states its support for the Global Compact’s 10 principles a, but policies and initiatives for some of the principles are missing. No information is provided on how a shareholder could communicate with the company (no email addresses, phone numbers, etc). While Nippon mentions that it participates in “green purchasing”, it fails to define “green” or how this is verified. No points were awarded for the criterion “recovery of fuel spillage” because Nippon only outlined measures to monitor and prevent; though Nippon says that it removes pollutants, it fails to mention how, when, why, etc. Claiming that it “removes pollutants” in close proximity to a statement about its fuel spillage prevention measures is not adequate. If Nippon was more specific about its community development efforts, it could easily gain more points: only a handful of specific events were mentioned (with very explicit and irrelevant details for the sake of CSR reporting), but the broader picture of what Nippon was actually doing to promote community development was convoluted (if present). In addition, forestry stewardship was by far the most mentioned activity, but no explanations about the actual work or the impacts were given. The report also states that staff and officers volunteer with forestry work, but not how the company supports or fosters this. Analyst(s): Ashley Scott

65 ESA E 58 S 50% S 25 29 Nippon Mining 12 4 SSA 50% Holdings EI ER EP SI SR SP 0 255075 Environmental Intent Question Category Score Max Score % General Comment Accountability 124 5Needs improvement Management 788 8Excellent Policy 7710 0Good Vision 254 0Good Environmental Reporting Question CategoryScore Max Score % General Comment Emissions to air 21 77 27 Needs improvement Emissions to water 0021 Needs substantial improvement Energy 8514 7Good Management 10 56 18 Needs substantial improvement Materials usage 007 Needs substantial improvement Recycling 5221 4Needs substantial improvement Waste 5128 8Needs substantial improvement Water 007 Needs substantial improvement Social Intent Question CategoryScore Max Score % General Comment Accountability 374 5Excellent Management 4410 0Needs improvement Policy 586 3Excellent Social Demographic 152 0Good Vision 254 0Good Social Reporting Question CategoryScore Max Score % General Comment Human Rights 16 77 21 Needs substantial improvement Management 347 3Needs improvement Qualitative Social 9242 1Needs substantial improvement Quantitative Social 8156 4Needs substantial improvement

www.roberts.cmc.edu 61 Petroleum Refining Sector B- Nippon Oil Nippon Oil 2009 Web Pages

Nippon Oil is explicit in its sustainability reporting. It states a strong commitment to reducing emissions of CO2, other greenhouse gases, chemicals, and various types of waste. Its Rang Dong Oil Field Project has successfully reduced CO2 emissions by eight million tons and is now certified in emissions reduction by the Kyoto Protocol. The ISO 14001 management system, Medium-Term Environmental Management plan, and external audits ensure that the production processes have well-understood and limited environmental impacts. Research and development has led Nippon Oil to extensive use of fuel cells, biogasoline, biodiesel, and programs to reduce energy consumption. Nippon also donates money to the rebuilding of schools and facilities in Vietnam and has distributed 1300 fuel cell systems to residential households throughout Japan. Nippon Oil has a health, safety, and environment committee that holds regular training sessions for employees on reducing environmental impacts and increasing safety of workers, and provides information on incident rates and lost workdays. Analyst(s): Jaclyn T. D'Arcy

E 85 ESA 42 38 E S 35 29 S 15 54% 46% Nippon Oil SSA EI ER EP SI SR SP 0 255075 Environmental Intent Question Category Score Max Score % General Comment Accountability 374 5Excellent Management 818 00Excellent Policy 9910 0Excellent Vision 254 0Good Environmental Reporting Question CategoryScore Max Score % General Comment Emissions to air 29 77 38 Needs improvement Emissions to water 4121 9Needs substantial improvement Energy 8514 7Good Management 22 56 39 Needs improvement Materials usage 007 Needs substantial improvement Recycling 8321 8Needs improvement Waste 6228 1Needs substantial improvement Water 007 Needs substantial improvement Social Intent Question CategoryScore Max Score % General Comment Accountability 374 5Excellent Management 2210 0Needs substantial improvement Policy 466 7Good Social Demographic 002 Needs substantial improvement Vision 254 0Good Social Reporting Question CategoryScore Max Score % General Comment Human Rights 16 77 21 Needs substantial improvement Management 007 Needs substantial improvement Qualitative Social 28 42 67 Good Quantitative Social 10 56 18 Needs substantial improvement

www.roberts.cmc.edu 62 Petroleum Refining Sector OMV Group OMV Group 2009 Sustainability Report and 2009 Web A Pages

OMV Group’s 2009 Sustainability Report included extensive information on the company’s efforts to mitigate its environmental damage and improve the social conditions of its employees and local communities. Incorporated in the report was an index of OMV Group’s GRI assessment, which made finding information and statistics on the company’s environmental and social reporting much easier, and also reaffirmed its transparency as a corporation committed to good social and environmental responsibility. OMV chooses to be transparent and include many of its areas needs of improvements with necessary measures to ensure progress. The company believes in strong human rights reporting, complete with monitoring and ways to ensure compliance. The management knows that by reporting sustainability efforts, the company will gain its employees' loyalty and confidence in the vision and mission of the company. Analyst(s): Jennifer Katelyn Ward

E 96 77 72 ESA E 56 36 42 S 46% S OMV Group SSA 54% EI ER EP SI SR SP 0 255075 Environmental Intent Question Category Score Max Score % General Comment Accountability 374 5Excellent Management 818 00Excellent Policy 10 10 100 Excellent Vision 414 00Excellent Environmental Reporting Question CategoryScore Max Score % General Comment Emissions to air 37 70 53 Good Emissions to water 6221 9Needs improvement Energy 6414 3Needs improvement Management 40 56 71 Good Materials usage 007 Needs substantial improvement Recycling 4121 9Needs substantial improvement Waste 16 28 57 Good Water 457 7Good Social Intent Question CategoryScore Max Score % General Comment Accountability 414 00Excellent Management 6610 0Good Policy 616 00Excellent Social Demographic 002 Needs substantial improvement Vision 414 00Excellent Social Reporting Question CategoryScore Max Score % General Comment Human Rights 57 77 74 Good Management 007 Needs substantial improvement Qualitative Social 38 42 90 Excellent Quantitative Social 21 56 38 Needs improvement

www.roberts.cmc.edu 63 Petroleum Refining Sector D PDVSA PDVSA 2009 Web Pages

PDVSA lacks a significant amount of quantitative data regarding its environmental and social policies in present and past years. In its 2009 sustainability web pages, the company claims to be committed to improving the quality of life in local Venezuelan communities, but it does not provide any detailed account of its environmental impact, such as its total energy consumption, hazardous waste released, and fuel spillage recovery. If the company hopes to improve its score in the future, it ought to provide more extensive data as well as discuss its employee code of conduct and business ethics. Analyst(s): Gracie Beck

E E 46 ESA 31 41% S 10 8 S 6 0 PDVSA SSA 59% EI ER EP SI SR SP 0 255075 Environmental Intent Question Category Score Max Score % General Comment Accountability 254 0Good Management 228 5Needs improvement Policy 6610 0Good Vision 254 0Good Environmental Reporting Question CategoryScore Max Score % General Comment Emissions to air 4577 Needs substantial improvement Emissions to water 0021 Needs substantial improvement Energy 0014 Needs substantial improvement Management 5956 Needs substantial improvement Materials usage 007 Needs substantial improvement Recycling 0021 Needs substantial improvement Waste 0028 Needs substantial improvement Water 007 Needs substantial improvement Social Intent Question CategoryScore Max Score % General Comment Accountability 004 Needs substantial improvement Management 2210 0Needs substantial improvement Policy 236 3Needs improvement Social Demographic 002 Needs substantial improvement Vision 414 00Excellent Social Reporting Question CategoryScore Max Score % General Comment Human Rights 0077 Needs substantial improvement Management 007 Needs substantial improvement Qualitative Social 14 42 33 Needs improvement Quantitative Social 3556 Needs substantial improvement

www.roberts.cmc.edu 64 Petroleum Refining Sector Petrobras Petrobras 2008 Sustainability Report and 2009 Web B+ Pages

With a comprehensive 150 page sustainability report, Petrobras, a Brazilian based company, has gone above and beyond many others in its environmental reporting. The report is well organized, and topics from human rights to environment to labor concerns can be found very easily. One of the more impressive aspects of the report is that all the different sources of energy are listed, each with its level of consumption. In addition to reporting these items, Petrobras mentions its attention to reducing emissions through its Energy-Efficient Program and also includes efforts to reduce water usage with improved methodology and a data hydro system for studying and investigation information about water resources. Petrobras has also invested in reductions of hazardous waste from the source. Petrobras reports numerous environmental notices of violation, but maintains ten environmental protection centers to increase the scope of prevention; on the other hand, it doesn’t report any of the likely health and safety citations and fines. Petrobras’ sustainability report also has very good social sustainability information. There are guidelines providing policies regarding corruption, child labor, most other human rights fields. Most of the policies mentioned include great detail, especially those regarding forced labor of employees. Petrobras could improve on its reporting of sexual harassment and political contributions, which receive only brief mention. In addition it would be helpful to include information on social impediments and challenges and how the company plans to overcome them. Overall Petrobras does a thorough job in both environmental and social reporting, and its report does seem to show its concern for sustainability. Analyst(s): Eric Robert King

E 100 81 ESA E 56 46 45% S S 25 5 Petrobras SSA 55% EI ER EP SI SR SP 0 255075 Environmental Intent Question Category Score Max Score % General Comment Accountability 414 00Excellent Management 818 00Excellent Policy 10 10 100 Excellent Vision 414 00Excellent Environmental Reporting Question CategoryScore Max Score % General Comment Emissions to air 23 77 30 Needs improvement Emissions to water 5221 4Needs substantial improvement Energy 6414 3Needs improvement Management 21 56 38 Needs improvement Materials usage 347 3Needs improvement Recycling 5221 4Needs substantial improvement Waste 10 28 36 Needs improvement Water 577 1Good Social Intent Question CategoryScore Max Score % General Comment Accountability 414 00Excellent Management 9910 0Excellent Policy 586 3Excellent Social Demographic 002 Needs substantial improvement Vision 374 5Excellent Social Reporting Question CategoryScore Max Score % General Comment Human Rights 42 77 55 Good Management 347 3Needs improvement Qualitative Social 24 42 57 Good Quantitative Social 17 56 30 Needs improvement

www.roberts.cmc.edu 65 Petroleum Refining Sector Petronas Petronas 2009 Sustainability Report and 2009 Web C+ Pages

Petronas, Petroleum Nasional Berhad, exercises (most of) its duties as corporate citizen in a responsible and sustainable manner. The establishment of an “Energy Loss Management” system, the purpose of which is to identify and reduce energy inefficiencies, is testament to Petronas’s desire to embrace sustainable practices. It is admirable that Petronas was able to identify and eliminate 4.2 million mmBTU of energy from flaring and venting. Unfortunately though, Petronas does not report its total energy consumption from all of its operations; it only reports the changes from year-to-year. If Petronas’ seeks to be a truly responsible corporate citizen, it needs to improve its reporting by quantifying the environmental effects of its operations. Not reporting such information or only reporting it for specific centers, as it reports hazardous waste only for Malaysian operations, makes comparisons across companies either impossible or unfair. Petronas’ investment in research and design of green technology, yielding Ecoplus, an alternative to non-degradable plastic packaging, proves its commitment to sustainability. The dramatic increase in spill volume from 2008 to 2009, 912 and 10210 barrels of oil respectively, draw attention to Petronas’ need to improve its spill prevention system. Petronas does an outstanding job of investing in the local communities in which it operates. Its programs, from its Mobile Library in Sudan that provides access of 15,000 books to 65,000 children, to its drug abuse prevention program in Malaysia, show its genuine interest in helping those in need. Petronas’ Health and Safety Management System, ranging from its zero tolerance policy to its corporate wellness program, has created a health and safety conscious corporate culture. To embrace its ideal of transparency in business operations, Petronas’ should post its code of conduct and ethics online in order that the general public and (potential) investors should judge if it is living up to its own standards. While it does much to demonstrate the attention it pays to its employees—it has instituted many grievance mechanisms, satisfaction surveys, and competitive employment packages—Petronas mentions little of its approach to their most basic human rights. Nowhere in its sustainability report, for example, does it reference its corporate attitude towards corporal punishment of employees or sexual harassment. In its best practices, Petronas is a good example of the corporate sustainability movement. It constantly re-evaluates how its operations adversely effect the environment and how these deleterious effects can be removed. The main improvements Petronas’ needs to make before the next time we review it are in reporting. It needs to show all of the numbers that quantify its operations—from energy consumed to hazardous waste recycled. It also needs to be explicit of what it does and does not allow in the workplace. Analyst(s): William Brown

E 77 ESA E 38 37 44% 25 21 S S 9 Petronas SSA 56% EI ER EP SI SR SP 0 255075 Environmental Intent Question Category Score Max Score % General Comment Accountability 254 0Good Management 568 3Good Policy 9910 0Excellent Vision 414 00Excellent Environmental Reporting Question CategoryScore Max Score % General Comment Emissions to air 18 77 23 Needs substantial improvement Emissions to water 0021 Needs substantial improvement Energy 3214 1Needs substantial improvement Management 14 56 25 Needs improvement Materials usage 347 3Needs improvement Recycling 1521 Needs substantial improvement Waste 8228 9Needs improvement Water 007 Needs substantial improvement Social Intent Question CategoryScore Max Score % General Comment Accountability 374 5Excellent Management 3310 0Needs improvement Policy 236 3Needs improvement Social Demographic 002 Needs substantial improvement Vision 254 0Good Social Reporting Question CategoryScore Max Score % General Comment Human Rights 20 77 26 Needs improvement Management 007 Needs substantial improvement www.roberts.cmc.edu 66 Petroleum Refining Sector Qualitative Social 25 42 60 Good Quantitative Social 14 56 25 Needs improvement

www.roberts.cmc.edu 67 Petroleum Refining Sector Petroplus Holdings Petroplus Holdings Sustainability Report and 2009 D- Web Pages

Petroplus Holdings is committed to the safety and health of its employees and environment compliance. Petroplus has no information addressing pressing climate change, conservation, or biodiversity issues, nor is it making efforts to purchase green. It does, however, include information about stakeholder consultation and adoption of the ISO management system. There is no information suggesting renewable energy usage, and no records of water or waste usage. Chemicals and materials released were left out of the report as were incident rates and injury reports. There is, however, a “REACH” program that addresses the Registration, Evaluation, Authorization, and Restriction of chemicals. The code of conduct explains the shareholder and board members’ contributions, however there is no workforce profiling or human rights reporting. Petroplus offers multiple opportunities for student internships and employee upward mobility, and shows dedication to community development and education. Overall, the information provided by Petroplus is limited, and does not address many key issues pertaining to petroleum refining. Analyst(s): Jaclyn T. D'Arcy

E E 35 ESA 23 30% S 8 S 3 0 0 Petroplus Holdings SSA 70% EI ER EP SI SR SP 0 255075 Environmental Intent Question Category Score Max Score % General Comment Accountability 004 Needs substantial improvement Management 228 5Needs improvement Policy 2210 0Needs substantial improvement Vision 254 0Good Environmental Reporting Question CategoryScore Max Score % General Comment Emissions to air 2377 Needs substantial improvement Emissions to water 0021 Needs substantial improvement Energy 1714 Needs substantial improvement Management 2456 Needs substantial improvement Materials usage 007 Needs substantial improvement Recycling 0021 Needs substantial improvement Waste 0028 Needs substantial improvement Water 007 Needs substantial improvement Social Intent Question CategoryScore Max Score % General Comment Accountability 374 5Excellent Management 3310 0Needs improvement Policy 356 0Good Social Demographic 002 Needs substantial improvement Vision 004 Needs substantial improvement Social Reporting Question CategoryScore Max Score % General Comment Human Rights 0077 Needs substantial improvement Management 007 Needs substantial improvement Qualitative Social 9242 1Needs substantial improvement Quantitative Social 1256 Needs substantial improvement

www.roberts.cmc.edu 68 Petroleum Refining Sector PKN Orlen Group PKN Orlen Group 2008 Annual Report, 2008 B Environmental Report, and 2010 Web Pages

PKN Orlen published its 2008 Annual Report, Code of Ethics, 2008 Environmental Report, and an Information Brochure in order to highlight its environmental and social responsibilities. These documents include much information on the company’s environmental performance yet are vague on some issues. One way PKN Orlen protects the environment is through the production of green fuels. Orlen introduced a renewable fuel, Bioester, and increased the availability of AdBlue, an agent that reduces harmful exhaust gas particles. Orlen has also implemented the neutralization of dry sewage sludge, the modernization of wastewater systems and boiler burners, and installation of a thermal waste treatment unit in order to decrease its negative environmental impacts. PKN also mentions the implementation of a NOx emission reduction plant in ANWIL SA. While describing these efforts, PKN mentions the Responsible Care Programme which encourages environmental protection tasks and includes an HSE triad for health, safety, and environment; however, but notes that only five companies within the Orlen Group have agreed to comply with the rules of the Programme. The company also mentions that a spill monitoring system is in place, yet reports no information on accidental spills and how they are handled. PKN gives much data on total waste produced, yet does not explain the amounts of this waste that are landfilled, incinerated, or transferred. Analyst(s): Karina Gomez

E 81 ESA E 62 48 44% 34 31 S 20 S PKN Orlen Group SSA 56% EI ER EP SI SR SP 0 255075 Environmental Intent Question Category Score Max Score % General Comment Accountability 374 5Excellent Management 788 8Excellent Policy 7710 0Good Vision 414 00Excellent Environmental Reporting Question CategoryScore Max Score % General Comment Emissions to air 24 70 34 Needs improvement Emissions to water 1521 Needs substantial improvement Energy 0014 Needs substantial improvement Management 19 56 34 Needs improvement Materials usage 007 Needs substantial improvement Recycling 8321 8Needs improvement Waste 11 28 39 Needs improvement Water 457 7Good Social Intent Question CategoryScore Max Score % General Comment Accountability 414 00Excellent Management 4410 0Needs improvement Policy 466 7Good Social Demographic 002 Needs substantial improvement Vision 414 00Excellent Social Reporting Question CategoryScore Max Score % General Comment Human Rights 41 77 53 Good Management 007 Needs substantial improvement Qualitative Social 24 42 57 Good Quantitative Social 14 56 25 Needs improvement

www.roberts.cmc.edu 69 Petroleum Refining Sector PTT PTT 2008 Sustainability Report, Corporate B- Governance Handbook, and 2009 Web Pages

PTT's 2008 "Power for Sustainable Future" Sustainability Report, 2009 Web Pages, and Corporate Governance Handbook provide in-depth descriptions of the company’s visions, policies, and institutionalized structures devoted to achieving sustainable development. However, a lack of quantitative data within aspects of PTT’s reporting does not allow for full transparency of the company’s operations. While the sustainability report succeeds in conveying PTT’s devotion to engaging in community development projects, it does not include quantitative data to support the amount of resources PTT sets aside to make these social investments. Likewise, while PTT acknowledges issues such as climate change and describes its measures to monitor PTT’s carbon footprint, PTT’s report does not provide quantitative data summarizing yearly greenhouse gas emissions nor environmental expenditures and investments. In cases where data were provided, it was occasionally difficult to obtain the information of interest without making assumptions about the data provided or making outside calculations to normalize the data. Though PTT provides reasons for gaps in quantitative data and outlines current measures to obtain this information for future reports, the current information gap makes it difficult to determine the extent to which PTT’s actions and initiatives are leading the company toward achieving its vision of sustainable development. As PTT continues to find ways to obtain the missing quantitative data in the 2008 “Power for Sustainable Future” report to include in future reports, PTT will increase its transparency and allow outsiders to more easily determine the progress the company is making towards achieving sustainable development. Analyst(s): Ryan Dean Chas Kristensen

E E 73 73 ESA 47 36% 29 S 25 S 8 PTT SSA 64% EI ER EP SI SR SP 0 255075 Environmental Intent Question Category Score Max Score % General Comment Accountability 374 5Excellent Management 678 5Excellent Policy 8810 0Excellent Vision 254 0Good Environmental Reporting Question CategoryScore Max Score % General Comment Emissions to air 10 77 13 Needs substantial improvement Emissions to water 0021 Needs substantial improvement Energy 3214 1Needs substantial improvement Management 21 56 38 Needs improvement Materials usage 007 Needs substantial improvement Recycling 4121 9Needs substantial improvement Waste 3128 1Needs substantial improvement Water 457 7Good Social Intent Question CategoryScore Max Score % General Comment Accountability 254 0Good Management 10 10 100 Excellent Policy 586 3Excellent Social Demographic 002 Needs substantial improvement Vision 254 0Good Social Reporting Question CategoryScore Max Score % General Comment Human Rights 34 77 44 Needs improvement Management 227 9Needs improvement Qualitative Social 20 42 48 Needs improvement Quantitative Social 22 56 39 Needs improvement

www.roberts.cmc.edu 70 Petroleum Refining Sector Reliance Industries Reliance Industries 2006-2007 Sustainability Report B and 2009 Web Pages

Reliance Industries clearly takes its responsibilities as the largest private sector company in India seriously, as is shown by the high standard it strives for in its 2006-2007 Sustainability Report. The "Green Card" program rewards points to each site for environmentally sustainable practices and deducts them for failure to comply with company and national rules, showing a clear commitment to an environmentally friendly workplace. Reliance reported quantitative data in many areas, including energy use, recycling rates, and accident rates. However, the omission of others, such as spills and emissions of some specific contaminants, impacted its score, as did the lack of any information on remediation or cleanup of spills. Through $12 million in community investment, Reliance demonstrates its dedication to the health and education of the communities where it operates, establishing programs to provide scholarships to physically challenged students and clinics to provide free health care to its employees and their families. However, Reliance does not have its code of business ethics posted on its website, so it lost many points in the areas of human rights reporting and labor practices. The 2006-2007 report exemplifies the measures Reliance Industries is taking towards promoting sustainable growth. If Reliance reassesses the challenges and goals it faces annually and takes measures to overcome them, then it will be able to excel as an industry leader in the drive for better sustainability reporting Analyst(s): Erin Franks

E 88

ESA E 58 48 38 S 48% S 22 19 Reliance Industries SSA 52% EI ER EP SI SR SP 0 255075 Environmental Intent Question Category Score Max Score % General Comment Accountability 414 00Excellent Management 788 8Excellent Policy 8810 0Excellent Vision 414 00Excellent Environmental Reporting Question CategoryScore Max Score % General Comment Emissions to air 19 70 27 Needs improvement Emissions to water 1521 Needs substantial improvement Energy 9614 4Good Management 20 56 36 Needs improvement Materials usage 227 9Needs improvement Recycling 11 21 52 Good Waste 9328 2Needs improvement Water 457 7Good Social Intent Question CategoryScore Max Score % General Comment Accountability 414 00Excellent Management 4410 0Needs improvement Policy 356 0Good Social Demographic 002 Needs substantial improvement Vision 414 00Excellent Social Reporting Question CategoryScore Max Score % General Comment Human Rights 18 77 23 Needs substantial improvement Management 347 3Needs improvement Qualitative Social 16 42 38 Needs improvement Quantitative Social 32 56 57 Good

www.roberts.cmc.edu 71 Petroleum Refining Sector Repsol YPF Repsol YPF 2008 Annual Report, 2008 Corporate A- Responsibility Report, and 2009 Web Pages

Repsol YPF’s 2008 Annual Report, 2008 Annual Corporate Responsibility Report, Ethics and Conduct Regulation of Repsol YPF Employees, and its 2009 Web pages contain much information on social and environmental initiatives. Some of its initiatives concerning the reduction of its environmental impact through the investment of large amounts on Research and Development technologies and innovations are interesting. One such initiative is the recovery of cryogenic energy. This process involves regasification of liquefied natural gas (LNG) which can then be used for electricity generation and many other energy applications. Repsol also initiated Clean Development Mechanism (CDM) projects aimed at capturing CO2, including the implementation of a number of CO2 capture systems which use reusable bio-algae as energy biomass to increase sustainability, and Repsol notes the use of biodiesel and biodegradable safety oil in its machinery. The company also has developed environmentally friendly products for its consumers such as biofuels from micro algae and plastics for greenhouses which optimize the use of sunlight in order to use less water. Repsol’s efforts have not gone unnoticed. Repsol received the 2008 Sustainable Development Award for its environmental education, biodiversity, climate change, waste water, and energy efforts at La Pampilla refinery. The company has much data on reporting of emissions, waste, and energy and water usage. Repsol also mentions much data concerning spills affecting land, but does not include data concerning spills affecting water areas. Also, Repsol notes environmental court cases and fines because of non- compliance with environmental laws and regulations but provides no further information. Analyst(s): Karina Gomez

E 88 85 ESA E 53 54 32 37 S 49% S Repsol YPF SSA 51% EI ER EP SI SR SP 0 255075 Environmental Intent Question Category Score Max Score % General Comment Accountability 374 5Excellent Management 818 00Excellent Policy 8810 0Excellent Vision 414 00Excellent Environmental Reporting Question CategoryScore Max Score % General Comment Emissions to air 36 77 47 Needs improvement Emissions to water 9421 3Needs improvement Energy 6414 3Needs improvement Management 33 56 59 Good Materials usage 347 3Needs improvement Recycling 5221 4Needs substantial improvement Waste 11 28 39 Needs improvement Water 577 1Good Social Intent Question CategoryScore Max Score % General Comment Accountability 414 00Excellent Management 6610 0Good Policy 616 00Excellent Social Demographic 212 00Excellent Vision 414 00Excellent Social Reporting Question CategoryScore Max Score % General Comment Human Rights 37 77 48 Needs improvement Management 717 00Excellent Qualitative Social 26 42 62 Good Quantitative Social 20 56 36 Needs improvement

www.roberts.cmc.edu 72 Petroleum Refining Sector Rosneft Oil Rosneft Oil 2008 Sustainability Report, 2008 C+ Business Code of Ethics and 2009 Web Pages

Rosneft Oil’s reporting is inconsistent. There is a thorough Sustainability Report from 2008 and an entire section of the website about sustainable development, making it easy to navigate the website for relevant information. Rosneft Oil also has a well-established sustainability management system, the Health Safety Security and Environment Management System or HSSE, which includes an environmental accounting system and a three step training program for the career advancement of young specialists. Nevertheless, Rosneft fails to report much of the information that would be expected from a company that maintains a firm commitment to sustainability and has an environmental management system. Strikingly, Rosneft fails to mention climate change or global warming in any of its reporting. Also, it fails to discuss projects for ecosystem protection and makes only a cursory mention of its position on biodiversity. Its lack of improvement in environmental emissions is explained by the acquisition of new assets, specifically the purchasing of 5 major refineries in 2008, but the decrease in spending on indigenous minority peoples of the North of Russia from 4.8 million dollars in 2007 to 4 million dollars in 2008 is unexplained. Overall, Rosneft should be commended for its well-organized website and accessibility to its 2008 Sustainability Report, but nevertheless needs to report more fundamental information. Analyst(s): Allison Scott

E 77 ESA E 65 38 45% 30 S S 18 17 Rosneft Oil SSA 55% EI ER EP SI SR SP 0 255075 Environmental Intent Question Category Score Max Score % General Comment Accountability 414 00Excellent Management 678 5Excellent Policy 3310 0Needs improvement Vision 414 00Excellent Environmental Reporting Question CategoryScore Max Score % General Comment Emissions to air 18 77 23 Needs substantial improvement Emissions to water 0021 Needs substantial improvement Energy 0014 Needs substantial improvement Management 28 56 50 Good Materials usage 007 Needs substantial improvement Recycling 5221 4Needs substantial improvement Waste 6228 1Needs substantial improvement Water 457 7Good Social Intent Question CategoryScore Max Score % General Comment Accountability 414 00Excellent Management 6610 0Good Policy 616 00Excellent Social Demographic 002 Needs substantial improvement Vision 414 00Excellent Social Reporting Question CategoryScore Max Score % General Comment Human Rights 10 77 13 Needs substantial improvement Management 227 9Needs improvement Qualitative Social 27 42 64 Good Quantitative Social 18 56 32 Needs improvement

www.roberts.cmc.edu 73 Petroleum Refining Sector Royal Dutch Shell Royal Dutch Shell 2008 Sustainability Report and B- 2009 Web Pages

Royal Dutch Shell’s 2008 Sustainability Report included extensive information on the company’s efforts to mitigate its environmental damage and improve the social conditions of its employees and local communities. The company’s GRI assessment reaffirmed its transparency as a corporation committed to good social and environmental responsibility. Shell lacks several PSI points due to a lack of quantitative environmental and social reporting in specific areas. Although concerned with promoting human rights and research and development of alternative energy sources, the company could increase its efforts, or evidence of its efforts, to recycle more waste, water, and energy, as well as clearly report its total usage figures in these areas. Shell’s vision to improve the environment and the global society is well-stated, but it could be further supported by more initiatives. Analyst(s): Jennifer Katelyn Ward

E 92 77 ESA E 41 43% 28 31 S 20 S Royal Dutch Shell SSA 57% EI ER EP SI SR SP 0 255075 Environmental Intent Question Category Score Max Score % General Comment Accountability 414 00Excellent Management 678 5Excellent Policy 10 10 100 Excellent Vision 414 00Excellent Environmental Reporting Question CategoryScore Max Score % General Comment Emissions to air 22 77 29 Needs improvement Emissions to water 5221 4Needs substantial improvement Energy 1714 Needs substantial improvement Management 15 56 27 Needs improvement Materials usage 007 Needs substantial improvement Recycling 2121 0Needs substantial improvement Waste 8228 9Needs improvement Water 687 6Excellent Social Intent Question CategoryScore Max Score % General Comment Accountability 414 00Excellent Management 6610 0Good Policy 616 00Excellent Social Demographic 002 Needs substantial improvement Vision 414 00Excellent Social Reporting Question CategoryScore Max Score % General Comment Human Rights 27 77 35 Needs improvement Management 457 7Good Qualitative Social 21 42 50 Good Quantitative Social 18 56 32 Needs improvement

www.roberts.cmc.edu 74 Petroleum Refining Sector Showa Shell Sekiyu Showa Shell Sekiyu 2008 Sustainability Report and C+ 2009 Web Pages

Showa Shell Sekiyu appears to have developed new stable energy supplies that reduce adverse environmental impacts. The website shows research and development of commercial products that range from CIS thin-filmed solar powered cells to gas to liquid fuel and bio-gasoline. Programs including prevention of atmospheric pollution, soil contamination countermeasures, chemical substance management, and prevention of water pollution were included in the environmental vision and Health Safety and Environment (HSE) sustainability report. The company strives to reduce unit energy consumption at refineries to 8.02 by 2010, the volume of industrialized waste by 88.7%, and carbon dioxide emissions at all stages of refinery. It has created an Eco TRY 21 program for its office workers with a goal to reduce carbon dioxide emissions by 1.5kg/person/day. Addressing climate change and global warming, Showa holds public symposiums on energy sustainability and encourages employee volunteerism at its projects including the reforestation of Mt. Fuji. To further educate its employees and community, Showa Shell Sekiyu holds environmental classes and science events, and has created an e-learning program for employees to address not only environmental issues, but safety regulations as well. The HSE management claims to educate employees to enhance awareness and, through audits, complies with laws, regulations and voluntary rules pertaining to health and safety. The company established a Voice of People program to reflect opinions of employees in management policies and hires third-party auditors to evaluate environmental and social management. Analyst(s): Jaclyn T. D'Arcy

E 96 65 ESA E 31 36 S 50% S 17 12 Showa Shell Sekiyu SSA 50% EI ER EP SI SR SP 0 255075 Environmental Intent Question Category Score Max Score % General Comment Accountability 414 00Excellent Management 818 00Excellent Policy 9910 0Excellent Vision 414 00Excellent Environmental Reporting Question CategoryScore Max Score % General Comment Emissions to air 15 77 19 Needs substantial improvement Emissions to water 0021 Needs substantial improvement Energy 9614 4Good Management 17 56 30 Needs improvement Materials usage 687 6Excellent Recycling 5221 4Needs substantial improvement Waste 7228 5Needs improvement Water 227 9Needs improvement Social Intent Question CategoryScore Max Score % General Comment Accountability 414 00Excellent Management 5510 0Good Policy 466 7Good Social Demographic 002 Needs substantial improvement Vision 414 00Excellent Social Reporting Question CategoryScore Max Score % General Comment Human Rights 14 77 18 Needs substantial improvement Management 687 6Excellent Qualitative Social 23 42 55 Good Quantitative Social 9156 6Needs substantial improvement

www.roberts.cmc.edu 75 Petroleum Refining Sector C Sinopec Sinopec Sustainability Report and 2009 Web Pages

Sinopec specifies multiple pollution control methods to protect the natural environment, promote clean production, and realize further sustainable development goals. Energy usage has decreased by 5.2 percent, saving 3.92 million tons of coal. Sinopec has also reduced water usage by 3.6 percent and reports a steady decrease in waste over the past three years. Through its health, safety and environmental management, it has improved fire fighting facilities, provided health examinations, avoided accidents by reducing risk, and had 741 hidden hazards removed from facilities. The company also actively supports community education, especially of women, and has what appears to be an admirable earthquake relief program. Analyst(s): Jaclyn T. D'Arcy

E 62 ESA 50 38% 35 S 15 17 17 S Sinopec SSA 62% EI ER EP SI SR SP 0 255075 Environmental Intent Question Category Score Max Score % General Comment Accountability 124 5Needs improvement Management 338 8Needs improvement Policy 8810 0Excellent Vision 414 00Excellent Environmental Reporting Question CategoryScore Max Score % General Comment Emissions to air 7977 Needs substantial improvement Emissions to water 0021 Needs substantial improvement Energy 3214 1Needs substantial improvement Management 7156 3Needs substantial improvement Materials usage 007 Needs substantial improvement Recycling 1521 Needs substantial improvement Waste 11 28 39 Needs improvement Water 687 6Excellent Social Intent Question CategoryScore Max Score % General Comment Accountability 124 5Needs improvement Management 4410 0Needs improvement Policy 466 7Good Social Demographic 002 Needs substantial improvement Vision 414 00Excellent Social Reporting Question CategoryScore Max Score % General Comment Human Rights 27 77 35 Needs improvement Management 347 3Needs improvement Qualitative Social 17 42 40 Needs improvement Quantitative Social 5956 Needs substantial improvement

www.roberts.cmc.edu 76 Petroleum Refining Sector D SK Holdings SK Holdings 2009 Brochure and 2009 Web Pages

SK Holdings, a holding company for twelve Korean subsidiaries and affiliates, does not provide much sustainability information on its website. While two of its subsidiary companies, SK Energy and SK Telecom, produce corporate sustainability reports, SK Holdings does not provide any sustainability data for the entire group. This is not to say that the company is socially inactive; in fact, the company philosophy is to "spread happiness." SK Holdings has programs to fight homelessness, distribute meals to impoverished families and elderly persons, promote research and development of renewable energy, and provide opportunities for individuals with learning disorders. In addition, SK Energy and SK Telecom participate in the UN Global Compact, and both they and SKC, SK C&C, and SK Shipping provide sustainability information on their English-language websites. However, our scoring system only counts information available on SK Holdings’s own website, which had little information on practices used by the entire group. To perform better, SK Holdings should promote environmental and social reporting for all its companies and collect data on group performance as a whole. Without complete information on the activities of all group companies, SK Holdings does not appear united in its mission to spread happiness. Analyst(s): Erin Franks

E E 27 ESA 19 30% 14 S 6 4 S 0 SK Holdings SSA 70% EI ER EP SI SR SP 0 255075 Environmental Intent Question Category Score Max Score % General Comment Accountability 004 Needs substantial improvement Management 228 5Needs improvement Policy 3310 0Needs improvement Vision 004 Needs substantial improvement Environmental Reporting Question CategoryScore Max Score % General Comment Emissions to air 2370 Needs substantial improvement Emissions to water 0021 Needs substantial improvement Energy 2114 4Needs substantial improvement Management 3556 Needs substantial improvement Materials usage 007 Needs substantial improvement Recycling 1521 Needs substantial improvement Waste 1428 Needs substantial improvement Water 007 Needs substantial improvement Social Intent Question CategoryScore Max Score % General Comment Accountability 004 Needs substantial improvement Management 2210 0Needs substantial improvement Policy 356 0Good Social Demographic 002 Needs substantial improvement Vision 254 0Good Social Reporting Question CategoryScore Max Score % General Comment Human Rights 2377 Needs substantial improvement Management 007 Needs substantial improvement Qualitative Social 17 42 40 Needs improvement Quantitative Social 1256 Needs substantial improvement

www.roberts.cmc.edu 77 Petroleum Refining Sector A- S-Oil S-Oil 2009 Sustainability Report and 2009 Web Pages

S-Oil is thorough in its corporate sustainability reporting. It demonstrates habitat and biodiversity conservation initiatives, and it is active in its community. The company partakes in various ceremonies to acknowledge firefighters and neighbors for good community service and has donated $300 million towards educational supplies for children. S-Oil supplies data to prove its energy consciousness and project goals to reduce its carbon footprint. The quantitative data reporting is coupled with useful benchmark information, such as legal limit or average industry rate. This additional information provides perspective on how to percieve these data. Analyst(s): Jaclyn T. D'Arcy

E 100 75 60 ESA E 49 52 36 S 46% S S-Oil SSA 54% EI ER EP SI SR SP 0 255075 Environmental Intent Question Category Score Max Score % General Comment Accountability 414 00Excellent Management 818 00Excellent Policy 10 10 100 Excellent Vision 414 00Excellent Environmental Reporting Question CategoryScore Max Score % General Comment Emissions to air 26 77 34 Needs improvement Emissions to water 10 21 48 Needs improvement Energy 6414 3Needs improvement Management 39 56 70 Good Materials usage 007 Needs substantial improvement Recycling 6221 9Needs improvement Waste 13 28 46 Needs improvement Water 577 1Good Social Intent Question CategoryScore Max Score % General Comment Accountability 414 00Excellent Management 678 5Excellent Policy 616 00Excellent Social Demographic 002 Needs substantial improvement Vision 254 0Good Social Reporting Question CategoryScore Max Score % General Comment Human Rights 44 77 57 Good Management 007 Needs substantial improvement Qualitative Social 42 42 100 Excellent Quantitative Social 22 56 39 Needs improvement

www.roberts.cmc.edu 78 Petroleum Refining Sector Statoil Hydro Statoil 2008 Annual & Sustainability Report and C+ 2009 Web Pages

Statoil’s 2008 Annual Report, 2008 Sustainability Report, and 2009 Web pages provide sufficient environmental and social responsibility reporting. The reports provide clearly outlined environmental visionary and policy statements, which include challenges such as the effects of oil pollution on Arctic ecosystems. Statoil reports extensive quantitative environmental data for water used, waste recycled, waste disposed, hazardous waste released, air emissions, and emissions to water. However, these data are reported by refinery and no total for all operations is provided. Statoil could also improve its reporting of environmental expenditures. The company states that environmental expenditures are integrated into its business spending, but cannot isolate these investments and thus does not report them. While Statoil is lacking aspects of social data reporting such as community development and education, employee volunteerism, and access to health care for employees, the reports provide extensive human rights reporting. A formal adoption of policy and standard, actions to reinforce policy, and descriptions of monitoring measures are provided for anti-corruption practices, elimination of discrimination, free association, bribery, and political contributions. We would like to see this approach used much more widely. Analyst(s): Ryan Dean Chas Kristensen

E E 73 81 ESA 37% 42 S 23 13 S 3 Statoil Hydro SSA 63% EI ER EP SI SR SP 0 255075 Environmental Intent Question Category Score Max Score % General Comment Accountability 374 5Excellent Management 458 0Good Policy 8810 0Excellent Vision 414 00Excellent Environmental Reporting Question CategoryScore Max Score % General Comment Emissions to air 13 77 17 Needs substantial improvement Emissions to water 2121 0Needs substantial improvement Energy 4214 9Needs improvement Management 9156 6Needs substantial improvement Materials usage 007 Needs substantial improvement Recycling 4121 9Needs substantial improvement Waste 6228 1Needs substantial improvement Water 227 9Needs improvement Social Intent Question CategoryScore Max Score % General Comment Accountability 374 5Excellent Management 8810 0Excellent Policy 616 00Excellent Social Demographic 002 Needs substantial improvement Vision 414 00Excellent Social Reporting Question CategoryScore Max Score % General Comment Human Rights 36 77 47 Needs improvement Management 347 3Needs improvement Qualitative Social 5142 2Needs substantial improvement Quantitative Social 17 56 30 Needs improvement

www.roberts.cmc.edu 79 Petroleum Refining Sector Suncor Energy Suncor Energy 2009 Report on Sustainability, 2009 B EH&S Policy Statement, and 2009 Web Pages

Suncor Energy has a 2009 CSR report and responsible development Web pages that covers a significant amount of environmental and social information. Goals are set for the most critical indicators such as water use, land disturbance, energy efficiency, and air emissions, depicting strong commitments to the environment. The performance reporting is condensed in graphs, making it highly transparent and easy to understand. Performance reporting was not compared to any standard or any other competitor’s performance, but some show robust progress. Analyst(s): Aisha Shaikh

E 88 E 73 ESA 63 37% 34 S 31 S 9 Suncor Energy SSA 63% EI ER EP SI SR SP 0 255075 Environmental Intent Question Category Score Max Score % General Comment Accountability 414 00Excellent Management 788 8Excellent Policy 8810 0Excellent Vision 414 00Excellent Environmental Reporting Question CategoryScore Max Score % General Comment Emissions to air 24 70 34 Needs improvement Emissions to water 0021 Needs substantial improvement Energy 5314 6Needs improvement Management 11 56 20 Needs substantial improvement Materials usage 687 6Excellent Recycling 3121 4Needs substantial improvement Waste 6228 1Needs substantial improvement Water 577 1Good Social Intent Question CategoryScore Max Score % General Comment Accountability 414 00Excellent Management 8810 0Excellent Policy 586 3Excellent Social Demographic 002 Needs substantial improvement Vision 254 0Good Social Reporting Question CategoryScore Max Score % General Comment Human Rights 54 77 70 Good Management 717 00Excellent Qualitative Social 19 42 45 Needs improvement Quantitative Social 17 56 30 Needs improvement

www.roberts.cmc.edu 80 Petroleum Refining Sector B Sunoco Sunoco Sustainability Report and 2009 Web Pages

Sunoco has a health environment and safety department which is responsible for the sustainability report and an employee-comprised Green Team to create new ideas and programs to improve the company's environmental performance. It is partnered with Energy Star and has already decreased total emissions by 8.5%. Sunoco believes that renewable energy is the answer to sustainability in the future and has already begun research and development in renewable fuels. Besides recycling on site, this company has reduced 76% of its waste and has invested millions of dollars in the Toledo land remediation project. To protect habitats and ecosystems, Sunoco has partnered with many conservation groups and started its own project, "Clean Your Streams." Projects like this encourage community development and education and provide opportunities for employee volunteerism. Besides protecting the environment, Sunoco’s website mentions a risk assessment program that trains employees about health and safety precautions in the workplace. Through its operations excellence management system, employees document unsafe acts and conditions to eliminate accidents, and the "Good Catch" program encourages employees to come forward about problems. Analyst(s): Jaclyn T. D'Arcy

E 81 73 ESA E 43 44 S 50% S 30 29 Sunoco SSA 50% EI ER EP SI SR SP 0 255075 Environmental Intent Question Category Score Max Score % General Comment Accountability 374 5Excellent Management 788 8Excellent Policy 7710 0Good Vision 414 00Excellent Environmental Reporting Question CategoryScore Max Score % General Comment Emissions to air 22 77 29 Needs improvement Emissions to water 2121 0Needs substantial improvement Energy 9614 4Good Management 35 56 63 Good Materials usage 227 9Needs improvement Recycling 7321 3Needs improvement Waste 9328 2Needs improvement Water 577 1Good Social Intent Question CategoryScore Max Score % General Comment Accountability 374 5Excellent Management 8810 0Excellent Policy 616 00Excellent Social Demographic 002 Needs substantial improvement Vision 254 0Good Social Reporting Question CategoryScore Max Score % General Comment Human Rights 31 77 40 Needs improvement Management 687 6Excellent Qualitative Social 27 42 64 Good Quantitative Social 8156 4Needs substantial improvement

www.roberts.cmc.edu 81 Petroleum Refining Sector Tesoro Tesoro 2006 Social Responsibility Report and 2009 B- Web Pages

Tesoro has taken the first steps towards becoming a visibly socially responsible corporation— it has established an Environmental, Health, and Safety (EHS) committee that reviews and evaluates company performance, and continually highlights its commitment to community development through its activities in the Team Tesoro volunteer program. This community effort was recognized in 2007 when Tesoro was named the Corporate Volunteer of the Year. However, the company does not report on numerous important social and environmental indicators. It claims to be concerned with occupational health and safety, something illustrated by its vast array of emergency response drills and large number of technicians specifically and continually trained in hands-on spill response, yet it fails to report on health and safety citations, health and safety fines, and serious injuries. While Tesoro does report on several environmental indicators, such as the amount of waste it disposes of, the data are presented in an unclear manner, and Tesoro does not report anything about the amount of energy its refineries consume and the amount of hazardous waste they produce and dispose of. Analyst(s): Shae Blood

E 77 ESA E 65 46 45% 30 29 S S 21 Tesoro SSA 55% EI ER EP SI SR SP 0 255075 Environmental Intent Question Category Score Max Score % General Comment Accountability 414 00Excellent Management 338 8Needs improvement Policy 9910 0Excellent Vision 414 00Excellent Environmental Reporting Question CategoryScore Max Score % General Comment Emissions to air 31 77 40 Needs improvement Emissions to water 1521 Needs substantial improvement Energy 0014 Needs substantial improvement Management 28 56 50 Good Materials usage 007 Needs substantial improvement Recycling 4121 9Needs substantial improvement Waste 4128 4Needs substantial improvement Water 007 Needs substantial improvement Social Intent Question CategoryScore Max Score % General Comment Accountability 414 00Excellent Management 4410 0Needs improvement Policy 586 3Excellent Social Demographic 002 Needs substantial improvement Vision 414 00Excellent Social Reporting Question CategoryScore Max Score % General Comment Human Rights 26 77 34 Needs improvement Management 007 Needs substantial improvement Qualitative Social 26 42 62 Good Quantitative Social 16 56 29 Needs improvement

www.roberts.cmc.edu 82 Petroleum Refining Sector D+ TNK-BP Holding TNK-BP Holding 2009 Web Pages

TNK-BP Holding’s sustainability Web pages have a few impressive features, but lack much of the information the PSI scores. The biodiversity section is very extensive, promising to avoid operation in areas of protected species. The company focuses a great deal on environmental education, utilizing an environmental management program to encourage conservation. There is some quantitative data regarding waste recycled and water used, showing and improvement from the previous years. All of the data reported showed an improvement except for increases in waste disposed of. No explanation is offered for this increase. In addition, the company lacks reporting on basic information such as energy used and renewable energy consumption and, despite intensive reporting on greenhouse gases, there is no mention of any other type of emissions. The reporting in which TNK-BP needs to improve most is on social sustainability. While there is mention of employee safety, there is no reporting on the usual human rights issues. In the aspects that are mentioned, such as political contributions, there is no reporting about actions to reinforce policy or ways to monitor its policies. In addition while there is a code of conduct, it is not very extensive and only provides vague concepts about the company’s position towards human rights. TNK-BP should improve social reporting and increase the amount of environmental quantitative data. Analyst(s): Eric Robert King

E S 42 ESA 31 23 20 S E 34% 10 2 TNK-BP Holding SSA 66% EI ER EP SI SR SP 0 255075 Environmental Intent Question Category Score Max Score % General Comment Accountability 004 Needs substantial improvement Management 008 Needs substantial improvement Policy 5510 0Good Vision 374 5Excellent Environmental Reporting Question CategoryScore Max Score % General Comment Emissions to air 10 77 13 Needs substantial improvement Emissions to water 2121 0Needs substantial improvement Energy 0014 Needs substantial improvement Management 17 56 30 Needs improvement Materials usage 007 Needs substantial improvement Recycling 9421 3Needs improvement Waste 8228 9Needs improvement Water 577 1Good Social Intent Question CategoryScore Max Score % General Comment Accountability 254 0Good Management 3310 0Needs improvement Policy 466 7Good Social Demographic 002 Needs substantial improvement Vision 254 0Good Social Reporting Question CategoryScore Max Score % General Comment Human Rights 8177 0Needs substantial improvement Management 007 Needs substantial improvement Qualitative Social 3742 Needs substantial improvement Quantitative Social 2456 Needs substantial improvement

www.roberts.cmc.edu 83 Petroleum Refining Sector Total Total 2008 Environment and Society Report and B+ 2009 Web Pages

Total Corporation’s 2008 Environment and Society Report, Code of Conduct, Health, Safety, and Environment Quality Charter, and its 2009 Web pages contain a great deal of environmental and social reporting. Total discusses numerous research and development initiatives that aim to reduce environmental impact and assist the company in energy transition. One such initiative is the company’s use of photovoltaic solar energy with photovoltaic solar cells. Total is optimizing its solar cells to contain a thinner silicon layer in order to simplify its processes of purification. The company is also implementing the use of thermodynamic solar farms, marine energy, biomass, and nuclear power to further facilitate energy transition. Although the company notes these initiatives, it reports nothing on renewable energy use. Total is also implementing carbon capture and storage to maintain its responsibility with climate change. Total has initiated an interesting project to test its environmental impact on water. The company has recreated and populated 16 river channels with organisms, and monitors these isolated ecosystems with biomarkers to test the real-world effects of individual chemicals and industrial effluents. However, the company mentions nothing further on how this project has improved its risk assessment. Total also notes the importance of waste management and recycling yet has no reporting on waste disposed of, non-hazardous waste, nor on recycling. The company has advocated a great deal for human rights in its host countries and communities. Total also advocates protection of health in the workplace by researching and anticipating possible illnesses such as musculoskeletal disorders that can occur in its workplaces to better prevent such instances from occurring. Analyst(s): Karina Gomez

E 81 81 ESA E 61 42% 42 35 S 24 S Total SSA 58% EI ER EP SI SR SP 0 255075 Environmental Intent Question Category Score Max Score % General Comment Accountability 374 5Excellent Management 678 5Excellent Policy 8810 0Excellent Vision 414 00Excellent Environmental Reporting Question CategoryScore Max Score % General Comment Emissions to air 23 77 30 Needs improvement Emissions to water 11 21 52 Good Energy 4214 9Needs improvement Management 28 56 50 Good Materials usage 717 00Excellent Recycling 0021 Needs substantial improvement Waste 7228 5Needs improvement Water 457 7Good Social Intent Question CategoryScore Max Score % General Comment Accountability 254 0Good Management 9910 0Excellent Policy 466 7Good Social Demographic 212 00Excellent Vision 414 00Excellent Social Reporting Question CategoryScore Max Score % General Comment Human Rights 40 77 52 Good Management 577 1Good Qualitative Social 30 42 71 Good Quantitative Social 22 56 39 Needs improvement

www.roberts.cmc.edu 84 Petroleum Refining Sector United Refining United Refining Sustainability Report and 2009 Web D- Pages

The United Refining 2009 Web pages contain no information on environmental or social initiatives. The company’s Code of Business Ethics is both vague in its description of unethical practices as well as completely lacking in any enforcement policy. Analyst(s): Aisha Shaikh

E E 10 5% 8 ESA 4 S 0 0 0 United Refining SSA S 95% EI ER EP SI SR SP 0 255075 Environmental Intent Question Category Score Max Score % General Comment Accountability 124 5Needs improvement Management 008 Needs substantial improvement Policy 0010 Needs substantial improvement Vision 004 Needs substantial improvement Environmental Reporting Question CategoryScore Max Score % General Comment Emissions to air 0077 Needs substantial improvement Emissions to water 0021 Needs substantial improvement Energy 0014 Needs substantial improvement Management 0056 Needs substantial improvement Materials usage 007 Needs substantial improvement Recycling 0021 Needs substantial improvement Waste 0028 Needs substantial improvement Water 007 Needs substantial improvement Social Intent Question CategoryScore Max Score % General Comment Accountability 004 Needs substantial improvement Management 0010 Needs substantial improvement Policy 116 7Needs substantial improvement Social Demographic 002 Needs substantial improvement Vision 124 5Needs improvement Social Reporting Question CategoryScore Max Score % General Comment Human Rights 10 77 13 Needs substantial improvement Management 007 Needs substantial improvement Qualitative Social 0042 Needs substantial improvement Quantitative Social 0056 Needs substantial improvement

www.roberts.cmc.edu 85 Petroleum Refining Sector Valero Energy Valero Energy 2009 Sustainability Report and Web D+ Pages

Valero Energy has a 22-page Flash-formatted 2009 Sustainability Report on its website which we scored but did not much like because it could not be downloaded. Valero's site also contains a political contributions page with no data, since it was "under construction". The CSR efforts outlined on Valero’s site are admirable, including its use of wind energy and infrared technology to find and repair hydrocarbon leaks. Valero’s strategy for emergency response is also well-detailed. Additionally, Valero is committed to the communities in which it operates and encourages employee involvement through volunteering. Valero has implemented an environmental justice policy, aiming to treat fence-line neighbors fairly and improve the quality of life in nearby communities. We think Valero would be better served by providing its sustainabiity report in a PDF download, while incorporating more sustainability information into it. Analyst(s): Ashley Scott

E E 46 ESA 42 30% 27 S 9 15 S 3 Valero Energy SSA 70% EI ER EP SI SR SP 0 255075 Environmental Intent Question Category Score Max Score % General Comment Accountability 374 5Excellent Management 228 5Needs improvement Policy 3310 0Needs improvement Vision 414 00Excellent Environmental Reporting Question CategoryScore Max Score % General Comment Emissions to air 6877 Needs substantial improvement Emissions to water 4121 9Needs substantial improvement Energy 1714 Needs substantial improvement Management 2456 Needs substantial improvement Materials usage 007 Needs substantial improvement Recycling 2121 0Needs substantial improvement Waste 2728 Needs substantial improvement Water 007 Needs substantial improvement Social Intent Question CategoryScore Max Score % General Comment Accountability 254 0Good Management 4410 0Needs improvement Policy 466 7Good Social Demographic 002 Needs substantial improvement Vision 124 5Needs improvement Social Reporting Question CategoryScore Max Score % General Comment Human Rights 18 77 23 Needs substantial improvement Management 007 Needs substantial improvement Qualitative Social 19 42 45 Needs improvement Quantitative Social 7156 3Needs substantial improvement

www.roberts.cmc.edu 86 Petroleum Refining Sector Petroleum Refining Environmental visionary statement 5 Environmental management system 20 -Discussion: includes a clear visionary statement expressing an organizational -Discussion: includes a statement of adoption of ISO 14001 or other formal commitment to good environmental performance. environmental management system. -Initiatives/actions: include measures to fulfill that commitment. -Initiatives/actions: include information on the extent to which the system has been implemented. Discussion Discussion Pg# Discussion Discussion Pg# Initiatives/Actions Initiatives Pg# Initiatives/Actions Initiatives Pg# Environmental impediments and challenges 6 Health and Safety, or Social organizational structure 51 -Discussion: of impediments and challenges faced by the organization in attempting to realize its environmental vision and commitments. -Discussion: of organizational structure or staffing for ensuring health and -Initiatives/actions: include measures to overcome them. safety or social responsibility. -Initiatives/actions: include identification of the individuals currently holding Discussion Pg# Discussion the staff positions. Initiatives/Actions Initiatives Pg# Discussion Discussion Pg# Social visionary statement 42 Initiatives/Actions Initiatives Pg# -Discussion: includes a clear visionary statement expressing an organizational Stakeholder consultation 23 commitment good social performance. -Initiatives/actions: include measures taken to fulfill that commitment. -Discussion: of consultation and dialogue with stakeholders about the organization's environmental aspects or impacts. Discussion Pg# Discussion -Initiatives/actions: include identification of specific consultation activities. Initiatives/Actions Initiatives Pg# Discussion Discussion Pg# Social impediments and challenges 43 Initiatives/Actions Initiatives Pg# Discussion: of impediments and challenges faced by the organization in Environmental education 16 attempting to realize its social vision and commitments. Initiatives/actions: include measures taken to overcome them. -Discussion: of efforts to promote environmental education and awareness of employees, the general public, or children. Discussion Pg# Discussion -Initiatives/actions: taken to provide such education. Initiatives/Actions Initiatives Pg# Discussion Discussion Pg# Environmental policy statement 9 Initiatives/Actions Initiatives Pg# -Discussion: includes a formal statement of the organization's environmental Environmental accounting 21 policy or plan. -Initiatives/actions: include a description of how the policy is being -Discussion: of environmental expenditures implemented. -Initiatives/actions: include detailed accounting of such expenditures. Discussion Discussion Pg# Discussion Discussion Pg# Initiatives/Actions Initiatives Pg# Initiatives/Actions Initiatives Pg# Social policy statement 45 Third-party validation 54 -Discussion: includes a formal statement of the company's social policy or plan. -Discussion: of the value (or lack thereof) of third-party auditing or validation. -Initiatives/actions: include a description of how the policy is being -Initiatives/actions: include formal auditing or validation by a qualified implemented. external third-party source. Discussion Discussion Pg# Discussion Discussion Pg# Initiatives/Actions Initiatives Pg# Initiatives/Actions Initiatives Pg# Report contact person 4 Climate change/global warming 10 -Discussion: identifies the person specifically designated to answer questions -Discussion: of the organization's position on climate change and/or global about the report or sustainability issues. Investor relations or public relations warming. contact representatives are not valid contacts for this question. -Initiatives/actions: include measures taken by the organization to decrease its -Initiatives/actions: to facilitate such contact, i.e. providing email address, contribution to climate change. phone number, or a link for feedback and questions. Discussion Discussion Pg# Discussion Discussion Pg# Initiatives/Actions Initiatives Pg# Initiatives/Actions Initiatives Pg# Habitat/ecosystem conservation 11 Environmental management structure 19 -Discussion: of the organization's position on conserving natural ecosystems -Discussion: of the organization's environmental management structure or and habitat. staffing. -Initiatives/actions: taken to increase conservation of natural ecosystems either -Initiatives/actions: include identification of individuals currently holding the associated with or separate from the organization's business activities. staff positions Discussion Discussion Pg# Discussion Discussion Pg# Initiatives/Actions Initiatives Pg# Initiatives/Actions Initiatives Pg#

www.roberts.cmc.edu 87 Petroleum Refining Sector Petroleum Refining Biodiversity 12 Employee training for career development 82 -Discussion: of the organization's position on biodiversity. -Discussion: of training, skills and learning programs appropriate to support -Initiatives/actions: taken by to the organization to foster biodiversity. employees' upward mobility. Discussion Discussion Pg# -Initiatives/actions: taken to implement such training. Discussion Discussion Pg# Initiatives/Actions Initiatives Pg# Initiatives/Actions Initiatives Pg# Green purchasing 13 -Discussion: about preferential purchasing of eco-friendly (non-polluting, Code of conduct or business ethics 47 recycled, recyclable, etc.) products. -Discussion: includes a formal organizational code of conduct or of ethical -Initiatives/actions: taken to implement such purchasing. behavior. Discussion Discussion Pg# -Initiatives/actions: include measures to assure that the code of conduct is followed. Initiatives Pg# Initiatives/Actions Discussion Discussion Pg# Supplier screening based on social or environmental 49 Initiatives/Actions Initiatives Pg# performance/ Supplier management -Discussion: or description of procedures to evaluate and select suppliers on Energy used (total) 26 their ability to meet the requirements of the company's social or environmental Sum of the energy used by the organization in all different forms, including policy and principles. electricity, fuel, natural gas and others. -Initiatives/actions: include measures to implement or assure such screening or Discussion Discussion Pg#: selection. Context Context Pg#: Discussion Discussion Pg# Goal Goal Pg#: Initiatives/Actions Initiatives Pg# Current Period Quantitative Data Quant Pg#: Workforce profile: Ethnicities/Race 17 Previous Quantitative Data Prev QuantPg#: Improvement Over Previous ImproveP#: -Discussion: of racial or ethnic distribution of workforce. -Initiatives/actions: taken to avoid racial or ethnic discrimination. Year Data Values Units Discussion Discussion Pg# Initiatives/Actions Initiatives Pg# Workforce profile: Gender 18 -Discussion: of gender distribution of workforce. -Initiatives/actions: taken to avoid gender discrimination and achieve appropriate balance Energy used (renewable) 27 Discussion Discussion Pg# Energy used from renewable sources such as wind, solar, hydroelectric, or other renewable sources. Initiatives/Actions Initiatives Pg# Discussion Discussion Pg#: Workforce profile: Age 52 Context Context Pg#: -Discussion: of age distribution of workforce. Goal Goal Pg#: -Initiatives/actions: include measures taken to avoid age discrimination or to Current Period Quantitative Data Quant Pg#: encourage a balanced age structure. Previous Quantitative Data Prev QuantPg#: Discussion Pg# Discussion Improvement Over Previous ImproveP#: Initiatives Pg# Initiatives/Actions Year Data Values Units Employment for individuals with disabilities 80 -Discussion: of appropriate actions to accommodate employees with disabilities. -Initiatives/actions: taken to implement such accommodations. Discussion Discussion Pg# Initiatives/Actions Initiatives Pg# Emergency preparedness program 53 -Discussion: of emergency preparedness programs to prepare employees or the public to cope with potential emergencies at the organization's facilities. -Initiatives/actions: include measures taken to implement such programs. Discussion Discussion Pg# Initiatives/Actions Initiatives Pg#

www.roberts.cmc.edu 88 Petroleum Refining Sector Petroleum Refining Waste recycled: solid waste 30 Waste (hazardous) produced 35 Sum of all solid waste recycled, including hazardous waste. Sum of all hazardous materials remaining after production, irrespective of Discussion Discussion Pg#: final disposition. Hazardous wastes include items identified as TRI, PRTR, HAP (Hazardous Air Pollutants), and similar indices, and may include Context Pg#: Context mercury or lead. Depending on the nationality of the organization, this could Goal Goal Pg#: be labeled "TRI" (Toxic Release Inventory), "substance releases" , or Current Period Quantitative Data Quant Pg#: something else. Previous Quantitative Data Prev QuantPg#: Discussion Discussion Pg#: Improvement Over Previous ImproveP#: Context Context Pg#: Goal Pg#: Year Data Values Units Goal Current Period Quantitative Data Quant Pg#: Previous Quantitative Data Prev QuantPg#: Improvement Over Previous ImproveP#: Year Data Values Units

Waste (office) recycled 32 Office recycling of paper, cardboard, metal, or plastic Discussion Discussion Pg#: Context Context Pg#: Goal Goal Pg#: Waste (hazardous) released to the environment 37 Current Period Quantitative Data Quant Pg#: Amounts of hazardous materials released into the environment, total (TRI, Previous Quantitative Data Prev QuantPg#: PRTR, HAP (Hazardous Air Pollutants), and similar indices), may include mercury or lead. Depending on the nationality of the organization, this could ImproveP#: Improvement Over Previous be labeled "TRI" (Toxic Release Inventory), "substance releases" , or Year Data Values Units something else. Discussion Discussion Pg#: Context Context Pg#: Goal Goal Pg#: Current Period Quantitative Data Quant Pg#: Previous Quantitative Data Prev QuantPg#: Improvement Over Previous ImproveP#: Waste (solid) disposed of 34 Year Data Values Units Includes solid hazardous and non-hazardous waste landfilled, incinerated, or transferred. Discussion Discussion Pg#: Context Context Pg#: Goal Goal Pg#: Current Period Quantitative Data Quant Pg#: Previous Quantitative Data Prev QuantPg#: Materials recycled: wastewater 106 Improvement Over Previous ImproveP#: Wastewater that is reused in a manufacturing process or otherwise recycled. Year Data Values Units Discussion Discussion Pg#: Context Context Pg#: Goal Goal Pg#: Current Period Quantitative Data Quant Pg#: Previous Quantitative Data Prev QuantPg#: Improvement Over Previous ImproveP#: Year Data Values Units

www.roberts.cmc.edu 89 Petroleum Refining Sector Petroleum Refining Water used 29 Carbon dioxide (CO2) or equivalents (i.e. GHG) 112 Sum of all water used during operations. CO2 emissions (or CO2 equivalents from CO2 + other greenhouse gases) Discussion Discussion Pg#: resulting from all company operations including generating electricity. Context Context Pg#: Discussion Discussion Pg#: Goal Goal Pg#: Context Context Pg#: Current Period Quantitative Data Quant Pg#: Goal Goal Pg#: Previous Quantitative Data Prev QuantPg#: Current Period Quantitative Data Quant Pg#: Improvement Over Previous ImproveP#: Previous Quantitative Data Prev QuantPg#: Improvement Over Previous ImproveP#: Year Data Values Units Year Data Values Units

Waste water released to natural water bodies 110 Volatile organic compounds (VOCs) Amount of waste water released into natural waters. 114 Discussion Discussion Pg#: Total emissions of volatile organic compounds, airborn chemicals most often released during the painting process. Context Context Pg#: Discussion Discussion Pg#: Goal Goal Pg#: Context Context Pg#: Current Period Quantitative Data Quant Pg#: Goal Goal Pg#: Previous Quantitative Data Prev QuantPg#: Current Period Quantitative Data Quant Pg#: Improvement Over Previous ImproveP#: Previous Quantitative Data Prev QuantPg#: Year Data Values Units Improvement Over Previous ImproveP#: Year Data Values Units

Greenhouse gases (or CO2 equivalents), total 83 The sum of all greenhouse gases released, which could include CO2, CH4 Methane (CH4) (methane), N2O (nitrous oxide), SF6 (Sulphur hexafluoride), PFCs 115 (Perfluorocarbons) and HFCs (hydrofluorocarbons). The report should label Methane (CH4) released to air. this indicator as "greenhouse gases released", "CO2 Equivalents", or similar. Discussion Discussion Pg#: Discussion Discussion Pg#: Context Context Pg#: Context Context Pg#: Goal Goal Pg#: Goal Goal Pg#: Current Period Quantitative Data Quant Pg#: Current Period Quantitative Data Quant Pg#: Previous Quantitative Data Prev QuantPg#: Previous Quantitative Data Prev QuantPg#: Improvement Over Previous ImproveP#: Improvement Over Previous ImproveP#: Year Data Values Units Year Data Values Units

www.roberts.cmc.edu 90 Petroleum Refining Sector Petroleum Refining Methane (CH4) 115 Nitrogen oxides (NOx) 121 Methane (CH4) released to air. Emissions of all nitrogen oxides to air. Discussion Discussion Pg#: Discussion Discussion Pg#: Context Context Pg#: Context Context Pg#: Goal Goal Pg#: Goal Goal Pg#: Current Period Quantitative Data Quant Pg#: Current Period Quantitative Data Quant Pg#: Previous Quantitative Data Prev QuantPg#: Previous Quantitative Data Prev QuantPg#: Improvement Over Previous ImproveP#: Improvement Over Previous ImproveP#: Year Data Values Units Year Data Values Units

Sulfur hexafluoride (SF6) 116 Volatile organic carbon (VOC), concentration 122 SF6 (Sulfur hexaflouride) emissions (most often given in CO2 equivalents; The concentration of volatile organic compound emissions in and around the CO2 equivalent for SF6 is 23,900). production facilities. Discussion Discussion Pg#: Discussion Discussion Pg#: Context Context Pg#: Context Context Pg#: Goal Goal Pg#: Goal Goal Pg#: Current Period Quantitative Data Quant Pg#: Current Period Quantitative Data Quant Pg#: Previous Quantitative Data Prev QuantPg#: Previous Quantitative Data Prev QuantPg#: Improvement Over Previous ImproveP#: Improvement Over Previous ImproveP#: Year Data Values Units Year Data Values Units

Carbon monoxide (CO) 118 Particulate matter (dust) 123 Carbon Monoxide (CO) released. "Particulate matter" usually refers to all material emitted to air smaller than 10 Discussion Discussion Pg#: microns in diameter (PM10). Smaller, more toxic material such as PM 2.5, smaller than 2.5 microns, may also be called out. Context Context Pg#: Discussion Discussion Pg#: Goal Goal Pg#: Context Context Pg#: Current Period Quantitative Data Quant Pg#: Goal Goal Pg#: Previous Quantitative Data Prev QuantPg#: Current Period Quantitative Data Quant Pg#: Improvement Over Previous ImproveP#: Previous Quantitative Data Prev QuantPg#: Year Data Values Units Improvement Over Previous ImproveP#: Year Data Values Units

www.roberts.cmc.edu 91 Petroleum Refining Sector Petroleum Refining Sulfur oxides (SOx) 127 Emissions to water, total, including fuel spillage or leakage 132 Emissions of all sulfur oxides, including sulfur dioxide (SO2). The release of chemicals or waste to water bodies. Typically called emissions Discussion Discussion Pg#: to water, releases to water, or effluent emissions. Context Context Pg#: Discussion Discussion Pg#: Goal Goal Pg#: Context Context Pg#: Current Period Quantitative Data Quant Pg#: Goal Goal Pg#: Previous Quantitative Data Prev QuantPg#: Current Period Quantitative Data Quant Pg#: Improvement Over Previous ImproveP#: Previous Quantitative Data Prev QuantPg#: Improvement Over Previous ImproveP#: Year Data Values Units Year Data Values Units

Suspended solids, total (TSS) 129 Employee turnover rate A measure of the amount of solids in wastewater. TSS can include a wide 3 variety of material, such as silt, decaying plant and animal matter, industrial Annual employee turnover rate. wastes, and sewage. Discussion Discussion Pg#: Discussion Discussion Pg#: Context Context Pg#: Context Context Pg#: Goal Goal Pg#: Goal Goal Pg#: Current Period Quantitative Data Quant Pg#: Current Period Quantitative Data Quant Pg#: Previous Quantitative Data Prev QuantPg#: Previous Quantitative Data Prev QuantPg#: Improvement Over Previous ImproveP#: Improvement Over Previous ImproveP#: Year Data Values Units Year Data Values Units

Recordable incident/accident rate 74 Biochemical Oxygen Demand (BOD) 131 Number of employee incidents or accidents, such as: “total case incident BOD is a measure of the concentration of biodegradable organic matter rate”, “incident rate”, or "accident rate". present in water and refers either wastwater effluent or receiving waters. Discussion Discussion Pg#: Discussion Discussion Pg#: Context Context Pg#: Context Context Pg#: Goal Goal Pg#: Goal Goal Pg#: Current Period Quantitative Data Quant Pg#: Current Period Quantitative Data Quant Pg#: Previous Quantitative Data Prev QuantPg#: Previous Quantitative Data Prev QuantPg#: Improvement Over Previous ImproveP#: Improvement Over Previous ImproveP#: Year Data Values Units Year Data Values Units

www.roberts.cmc.edu 92 Petroleum Refining Sector Petroleum Refining Lost workday case rate 75 Social community investment 81 Number of employee injuries or illnesses that resulted in one or more lost Amount of money spent on community outreach, including education grants, workdays donations, and relief effort funds. Discussion Discussion Pg#: Discussion Discussion Pg#: Context Context Pg#: Context Context Pg#: Goal Goal Pg#: Goal Goal Pg#: Current Period Quantitative Data Quant Pg#: Current Period Quantitative Data Quant Pg#: Previous Quantitative Data Prev QuantPg#: Previous Quantitative Data Prev QuantPg#: Improvement Over Previous ImproveP#: Improvement Over Previous ImproveP#: Year Data Values Units Year Data Values Units

Fatal Injuries 158 Notices of violation (environmental) 38 The total number of injuries causing death. Notices of violation (NOVs) for environmental infractions. Discussion Discussion Pg#: Discussion Discussion Pg#: Context Context Pg#: Context Context Pg#: Goal Goal Pg#: Goal Goal Pg#: Current Period Quantitative Data Quant Pg#: Current Period Quantitative Data Quant Pg#: Previous Quantitative Data Prev QuantPg#: Previous Quantitative Data Prev QuantPg#: Improvement Over Previous ImproveP#: Improvement Over Previous ImproveP#: Year Data Values Units Year Data Values Units

Serious Injuries 159 Environmental expenses and investments 39 The total number of injuries that (1) require hospitalization for more than 48 An accounting of money spent or invested specifically to decrease hours, commencing within seven days from the date the injury was received; environmental damage or to benefit the environment (2) results in a fracture of any bone (except simple fractures of fingers, toes or Discussion Discussion Pg#: nose); (3) causes severe hemorrhages, nerve, muscle or tendon damage; (4) Context Pg#: involves any internal organ; or (5) involves second or third-degree burns, or Context any burns affecting more than 5% of the body surface. Goal Goal Pg#: Discussion Discussion Pg#: Current Period Quantitative Data Quant Pg#: Context Context Pg#: Previous Quantitative Data Prev QuantPg#: Goal Goal Pg#: Improvement Over Previous ImproveP#: Current Period Quantitative Data Quant Pg#: Year Data Values Units Previous Quantitative Data Prev QuantPg#: Improvement Over Previous ImproveP#: Year Data Values Units

www.roberts.cmc.edu 93 Petroleum Refining Sector Petroleum Refining Fines (environmental) 40 Accidental spills 195 Government imposed fines for environmental infractions. Number of accidental spills or incidental spillage to any media, water, air, soil, Discussion Discussion Pg#: especially in transport, storage, exploration, and production. Context Context Pg#: Discussion Discussion Pg#: Goal Goal Pg#: Context Context Pg#: Current Period Quantitative Data Quant Pg#: Goal Goal Pg#: Previous Quantitative Data Prev QuantPg#: Current Period Quantitative Data Quant Pg#: Improvement Over Previous ImproveP#: Previous Quantitative Data Prev QuantPg#: Improvement Over Previous ImproveP#: Year Data Values Units Year Data Values Units

Health and safety citations 76 Life Cycle Analysis (LCA) Number of health and safety citations or notices of violation. If it is stated that 147 there were none, check lines 1,2,3, 4, and 6. Life Cycle Analysis (LCA) is a formal procedure that examines the environmental Discussion Discussion Pg#: aspects and impacts of a process or product from "cradle to grave". To get credit here, it must be referred to as life cycle analyses or planning. Context Context Pg#: Discussion Discussion Pg#: Goal Goal Pg#: Initiatives/Action Initiative Pg#: Current Period Quantitative Data Quant Pg#: Context Pg#: Previous Quantitative Data Prev QuantPg#: Context Improve Pg#: Improvement Over Previous ImproveP#: Improvement Over Previous Year Data Values Units Women in Management 2 Relative numbers of women in management. Discussion Discussion Pg#: Initiatives/Action Initiative Pg#: Context Context Pg#: Improvement Over Previous Improve Pg#: Health and safety fines 77 Employee satisfaction surveys 67 Fines levied against a company for health and safety violations. Surveys to monitor employee satisfaction. Discussion Discussion Pg#: Discussion Discussion Pg#: Context Context Pg#: Initiatives/Action Initiative Pg#: Goal Goal Pg#: Context Context Pg#: Current Period Quantitative Data Quant Pg#: Improvement Over Previous Improve Pg#: Previous Quantitative Data Prev QuantPg#: Occupational health and safety protection Improvement Over Previous ImproveP#: 70 Efforts to provide a safe and healthy working environment at all sites. Year Data Values Units Discussion Discussion Pg#: Initiatives/Action Initiative Pg#: Context Context Pg#: Improvement Over Previous Improve Pg#: Employee volunteerism 72 Efforts to promote employee volunteerism in social or environmental projects. Discussion Discussion Pg#: Initiatives/Action Initiative Pg#: Context Context Pg#: Improvement Over Previous Improve Pg#:

www.roberts.cmc.edu 94 Petroleum Refining Sector Petroleum Refining Access to health care for employees 185 Political contributions 7 Efforts to provide access to employees, especially those who are working off-shores Policy about political contributions Discussion Discussion Pg#: Adoption of Policy Policy Adopt Pg#: Initiatives/Action Initiative Pg#: Action to Reinforce Policy Initiative Pg#: Context Context Pg#: Monitoring Monitoring Pg#: Improvement Over Previous Improve Pg#: Quant. Indication of Compliance Qty Perf Pg#: Community development 66 Bribery 8 Efforts to participate in social activities that improve the quality of life of Rejection of bribery communities including that of indigenous people, where the organization operates. Adoption of Policy Discussion Discussion Pg#: Policy Adopt Pg#: Action to Reinforce Policy Initiatives/Action Initiative Pg#: Initiative Pg#: Monitoring Monitoring Pg#: Context Context Pg#: Quant. Indication of Compliance Qty Perf Pg#: Improvement Over Previous Improve Pg#: Community education 68 Anti-corruption practices 58 Efforts to support education in the communities where the company is located. Efforts to uphold the highest standards of business ethics and integrity. May be found Discussion Discussion Pg#: under a Code of Conduct. Initiatives/Action Initiative Pg#: Adoption of Policy Policy Adopt Pg#: Action to Reinforce Policy Initiative Pg#: Context Context Pg#: Monitoring Monitoring Pg#: Improvement Over Previous Improve Pg#: Quant. Indication of Compliance Qty Perf Pg#: Recovery of spilled fuel 136 Efforts to remediate oil spillage, i.e. speed up the biodegradation process of the oil Fair compensation of employees 62 spill. Assurance that wages paid meet or exceed legal or industry minimum standard. Discussion Pg#: Discussion Adoption of Policy Policy Adopt Pg#: Initiative Pg#: Initiatives/Action Action to Reinforce Policy Initiative Pg#: Context Pg#: Context Monitoring Monitoring Pg#: Improve Pg#: Improvement Over Previous Quant. Indication of Compliance Qty Perf Pg#: Green technologies research and development 133 Reasonable working hours 64 Research and development on green technologies Compliance with applicable laws and industry standards on working hours, including Discussion Pg#: Discussion overtime. Initiatives/Action Initiative Pg#: Adoption of Policy Policy Adopt Pg#: Context Pg#: Context Action to Reinforce Policy Initiative Pg#: Improve Pg#: Improvement Over Previous Monitoring Monitoring Pg#: Protection of marine ecosystems 134 Quant. Indication of Compliance Qty Perf Pg#: Efforts to enhance, protect, and conserve the marine ecosystem Degrading treatment or punishment of employees 59 Discussion Discussion Pg#: Commitment to oppose any corporal/hard labor punishment, mental/physical Initiative Pg#: Initiatives/Action coercion, or verbal abuse. Context Pg#: Context Adoption of Policy Policy Adopt Pg#: Improve Pg#: Improvement Over Previous Action to Reinforce Policy Initiative Pg#: Pipelines, monitoring and maintenance 137 Monitoring Monitoring Pg#: Efforts to maintain a safe and dependable pipeline. Monitoring for leaks and Quant. Indication of Compliance Qty Perf Pg#: minimization of environmental impact. Relevant to the petroleum and natural gas industries. Elimination of discrimination in respect to employment and 60 Discussion Discussion Pg#: occupation Initiatives/Action Initiative Pg#: Commitment not to engage in any kind of discrimination based on ethnicity, caste, Context Pg#: religion, disability, sex, age, sexual orientation, union membership, or political Context affiliation in hiring practices or employee treatment. Improvement Over Previous Improve Pg#: Adoption of Policy Policy Adopt Pg#: Sexual harassment 1 Action to Reinforce Policy Initiative Pg#: Rejection of any form of sexual harassment. Monitoring Monitoring Pg#: Adoption of Policy Policy Adopt Pg#: Quant. Indication of Compliance Qty Perf Pg#: Action to Reinforce Policy Initiative Pg#: Monitoring Monitoring Pg#: Quant. Indication of Compliance Qty Perf Pg#:

www.roberts.cmc.edu 95 Petroleum Refining Sector Petroleum Refining Free association and collective bargaining of employees 61 Efforts to respect the right of employees to form and join trade unions of their choice and to bargain collectively. Adoption of Policy Policy Adopt Pg#: Action to Reinforce Policy Initiative Pg#: Monitoring Monitoring Pg#: Quant. Indication of Compliance Qty Perf Pg#: Elimination of all forms of forced and compulsory labor 63 Assurance that all employees enter employment with the company of their own free will, not by compulsion. Adoption of Policy Policy Adopt Pg#: Action to Reinforce Policy Initiative Pg#: Monitoring Monitoring Pg#: Quant. Indication of Compliance Qty Perf Pg#: Effective abolition of child labor 65 Rejection of illegal child labor by the company or its affiliates. Adoption of Policy Policy Adopt Pg#: Action to Reinforce Policy Initiative Pg#: Monitoring Monitoring Pg#: Quant. Indication of Compliance Qty Perf Pg#:

www.roberts.cmc.edu 96 Petroleum Refining Sector Bharat Petroleum, BP, Caltex Australia, Calumet Specialty Products, Cepsa, Chevron, China National Petroleum, ConocoPhillips, Cosmo Oil, CPC, CVR Energy, Eni, Exxon Mobil, Formosa Petrochemical, Frontier Oil, Galp Energia, GS Holdings, Hess, Hindustan Petroleum, Holly, Idemitsu Kosan, Indian Oil, Israel C o r p . , L u k o i l , M a r a t h o n O i l , M o l

HungarianRoberts Environmental Oil and Center Gas, Murphy Oil, Neste The Roberts Environmental Center is a research institute at Claremont McKenna College, endowed by George R. Oil,Roberts, Nippon Founding Partner, Kohlberg Mining Kravis Roberts & Co. The Holdings, Center is managed by faculty and Nippon sta , and its research, Oil, including the material in this report, is done by students at the Claremont Colleges. OMVClaremont Group, McKenna College PDVSA, Petrobras, Petronas, Claremont McKenna College, a member of the Claremont Colleges, is a highly selective, independent, coeducational, residential, undergraduate liberal arts college with a curricular emphasis on economics, government, and public Petroplusa airs. Holdings, PKN Orlen Group, The Claremont Colleges PTT,The Claremont Reliance Colleges form a consortium of Industries, ve undergraduate liberal arts colleges and Repsol two graduate institutions YPF, based on the Oxford/Cambridge model. The consortium o ers students diverse opportunities and resources typically found only at much larger universities. The consortium members include Claremont McKenna College, Harvey Mudd RosneftCollege, Pitzer College,Oil, Pomona Royal College, Scripps College,Dutch Keck Graduate InstituteShell, of Applied LifeShowa Sciences, and the Shell Clremont Graduate University which—includes the Peter F. Drucker and Masatoshi Ito Graduate School of Management.

Sekiyu,Contact InformationSinopec, SK Holdings, S-Oil, Statoil Dr. J. Emil Morhardt, Director, Phone: 909-621-8190, email: [email protected] Hydro,Elgeritte Adidjaja, Suncor Research Fellow, Phone: 909-621-8698, Energy, email: [email protected] Sunoco, Tesoro, Roberts Environmental Center, Claremont McKenna College, 925 N. Mills Avenue, Claremont, CA 91711-5916, USA. TNK-BP Holding, Total,United Reﬁning, V a l e r o E n e r g y , W e s t e r n R e ﬁ n i n g