Phillips 66

InfluenceMap Score
E
Performance Band
29%
Organisation Score
32%
Relationship Score
Sector:
Energy
Head​quarters:
Houston, United States
Official Web Site:
Wikipedia:

Climate Lobbying Overview: Phillips 66 appears largely opposed to climate change policy, albeit with limited engagement on specific policy measures from 2019-22.

Top-line Messaging on Climate Policy: Phillips 66 has relatively limited top-line messaging on climate policy. The company does not appear to have a clear position on the need for net-zero by 2050 or limiting temperature increase to 1.5C, although some evidence from 2019 and 2020 suggests support for GHG emissions targets in regions where it operates, such as the United Kingdom and California. Instead, the company emphasizes the need for energy affordability in its 2021 Sustainability Report. In the same report, Phillips 66 stated conditional support for climate policy that it is market-based, as well as fuel and technology neutral. Although Phillips 66 appears to accept the need for policy in general to respond to climate change in its 2020 Sustainability Report, it has stressed that regulations must also "address economic concerns” and apply nationally, rather than at the state level. CEO Greg Garland stated support for the Paris Agreement ambitions on Twitter in September 2021, and reiterated this position in a February 2022 press release.

Engagement with Climate-Related Regulations: Phillips 66 shows relatively limited engagement with specific climate change policies, as well as limited transparency in its positions. According to its Q1 2022 federal LDA report, the company lobbied on the Build Back Better Act but did not specify lobbying on its climate provisions and did not state a position. In July 2020, CEO Greg Garland stated that Phillips 66 did not currently have an official position on any future carbon tax but could potentially support one if certain unspecified conditions were met. Previously, Phillips 66 appears to have opposed the renewable fuel standard: for example, in August 2019, it submitted a comment to the EPA stating "2020 proposed volumes remain too high and should be further reduced."

Positioning on Energy Transition: Phillips 66 does not appear to support the energy transition away from fossil fuels in line with IPCC recommendations. While the company’s position on the energy mix and the use of biofuels was unclear in its 2021 Sustainability Report, Phillips 66 emphasized the continued use of fossil fuels in its 2020 Sustainability Report. In May 2022, Argus Media lists Phillips 66 as a “stakeholder” in the development of a report that makes the case for hydrogen production based on fossil gas in Texas with no carbon capture until 2035; the report suggests that the state can transition to low-carbon hydrogen by 2050, a position misaligned from IPCC recommendations on decarbonizing hydrogen production. In April 2021, the company supported Texas House Bill 1501, which would prevent local jurisdictions from restricting the use of natural gas in new construction.

In direct comments to the California Air Resources Board in October 2021, Phillips 66 advocated for the continued use of diesel trucks beyond 2040. On an earnings call in October 2020, the company opposed the California governor’s proposed ban on ICE vehicles. Previously, in January 2020, CEO Greg Garland stated, that for “two and three decades we still see that fossil fuels are going to be a majority part of the energy mix.” In May 2019, Phillips 66 also expressed support for proposed legislation that would criminalize protests against fossil fuel infrastructure projects.

Industry Association Governance: Phillips 66 has not provided a dedicated disclosure of its membership to industry associations, beyond a list of groups to which it has given funding above a certain threshold. As such, it has not disclosed information on the extent to which it is aligned with these groups on climate change policy or how it is influencing their positions. Multiple senior executives of Phillips 66, including CEO Mark Lashier, serve on the Board of the American Fuel & Petrochemical Manufacturers as well as several of the group’s committees. Former CEO and current Executive Chairman of the Board of Phillips 66, Greg Garland, is also on the Board of the American Petroleum Institute. As of August 2022, Phillips 66 no longer serves on the Board but remains a member of the US Chamber of Commerce. These trade associations remain actively opposed to numerous strands of climate change policy in the U.S., including in the Build Back Better and Inflation Reduction Act.

A detailed assessment of the company's corporate review on climate policy engagement can be found on InfluenceMap's CA100+ Investor Hub here.

QUERIES
DATA SOURCES
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Strength of Relationship
STRONG
 
 
 
 
 
 
 
WEAK
 
23%
 
23%
 
20%
 
20%
 
29%
 
29%
 
28%
 
28%
 
52%
 
52%
 
47%
 
47%
 
26%
 
26%
 
41%
 
41%
 
34%
 
34%

How to Read our Relationship Score Map

In this section, we depict graphically the relationships the corporation has with trade associations, federations, advocacy groups and other third parties who may be acting on their behalf to influence climate change policy. Each of the columns above represents one relationship the corporation appears to have with such a third party. In these columns, the top, dark section represents the strength of the relationship the corporation has with the influencer. For example if a corporation's senior executive also held a key role in the trade association, we would deem this to be a strong relationship and it would be on the far left of the chart above, with the weaker ones to the right. Click on these grey shaded upper sections for details of these relationships. The middle section contains a link to the organization score details of the influencer concerned, so you can see the details of its climate change policy influence. Click on the middle sections for for details of the trade associations. The lower section contains the organization score of that influencer, the lower the more negatively it is influencing climate policy.