As part of our broader commitment to transparent governance, we maintain regular dialogue with investor stewardship teams, and our ESG reporting and disclosures are aligned with TCFD, SASB, CDP and GRI Core.* We provide robust information on political engagement and lobbying through regular updates on our website. Additionally, MPC was the first independent U.S. downstream energy company to link a DE&I metric to compensation, and 20% of our annual cash bonus program is comprised of ESG metrics.
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https://www.marathonpetroleum.com/content/documents/Investors/Annual_Report/2022_MPC_Annual_Report_and_10K.pdf
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As part of our broader commitment to transparent governance, we maintain regular dialogue with investor stewardship teams, and our ESG reporting and disclosures are aligned with TCFD, SASB, CDP and GRI Oil and Gas sector standard.* On our website, we provide robust information on political engagement and lobbying. Additionally, 20% of MPC's annual cash bonus program is comprised of ESG metrics.
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https://www.marathonpetroleum.com/content/documents/Investors/Annual_Report/2023_MPC_Annual_Report_and_10K.pdf
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At MPC, our impacts, risks and opportunities related to ESG topics, including climate-related issues, are identified and managed by company leadership with the oversight of our Board of Directors. [...] The Board's committees, including the Sustainability and Public Policy Committee, are responsible for specific areas of oversight and policy decision-making. Specific responsibilities are set forth in our Corporate Governance Principles and each committee's charter. Available at https://www.marathonpetroleum.com/Investors/Corporate-Governance/; and https://www.marathonpetroleum.com/About/Board-of-Directors/.
The Sustainability and Public Policy Committee's primary responsibilities are:
- Oversees risks and opportunities associated with sustainability, ESG and public policy matters
- Reviews our sustainability and climate reports and other key sustainability disclosures
- Oversees establishment of our sustainability targets
- Oversees governance framework and budgets for our political contributions and lobbying expenditures
- Oversees stakeholder engagement related to sustainability, ESG and public policy matters
Examples of oversight by the Board of climate-related matters would be the approval of MPC's scope 1 & 2 GHG intensity target in early 2020 and approval of MPC's absolute scope 3 category 11 GHG reduction target in early 2022.
The Audit Committee has oversight of and responsibility for reviewing legislative and regulatory issues affecting ESG and climate risk disclosures within the financial reporting framework and monitors developments in integrated reporting for alignment with financial reporting.
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https://www.marathonpetroleum.com/content/documents/Responsibility/CDP_Climate_Change_2023.pdf
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Marathon Petroleum Corporation's political contributions and lobbying expenditures are subject to the oversight of our Board of Directors, its Sustainability and Public Policy Committee, and senior management. The charter of the Board's Sustainability and Public Policy Committee articulates the purpose for the Committee and sets forth broad responsibilities that the Committee implements in the following ways: * Oversight of the company's governance framework for political engagement and public policy development * Oversight of budgets for lobbying expenditures and review of the company's advocacy positions * Oversight of budgets for payments made to trade associations that engage in lobbying activities and review of the advocacy positions of our trade associations, including their positions on climate * Oversight of budgets for contributions to political candidates, committees or parties * Review of reports and disclosures regarding such expenditures and contributions Additionally, members of our senior management team exercise oversight of trade association activities through an annual review, as well as through their own involvement and assignment of various employee technical and subject matter experts to support trade group committees and projects. Please see our Sustainability Report for more information on Sustainability Governance. Government Affairs Organizations and Compliance Political activities by and on behalf of Marathon Petroleum Corporation are managed by our federal and state government affairs organizations. To ensure compliance with laws regulating political contributions and lobbying activities, and to ensure that such activities are aligned with the interests of the company and its shareholders, lobbying contacts made on behalf of the company with federal, state and local government officials and all political contributions by the company are arranged through the management and other professional staff members of our government affairs organizations. On an annual basis our Office of Business Integrity and Compliance circulates a Code of Business Conduct questionnaire and each salaried employee, executive officer and member of our Board of Directors is required to complete the questionnaire and sign an annual certification that includes a specific statement of compliance with our political activity policy. Our Audit, Assurance and Advisory Services organization routinely conducts reviews of the practices of and reporting documentation prepared by the government affairs organizations, as well as the eligibility of employees contributing to the Marathon Petroleum Corporation Employees Political Action Committee (MPAC), and reports its findings to senior management. Trade Association Participation Like most companies, Marathon Petroleum Corporation is active in trade associations and similar groups at the national, state and local levels. Taking part in these associations is an important part of our role as an active member of our industry and the business communities in which we operate. These associations engage in many activities for the benefit of their members, including developing industry standards and best practices. Trade associations provide an important forum for us to engage in the development of these standards and practices, and to share advances in science and engineering that inform the best practices of the future. Through our trade associations we seek to champion legislative solutions that are in the best interests of the company and our stakeholders. We believe it is important to be engaged with these organizations so our positions on issues of importance to the company can be expressed. On an annual basis, our senior management undertakes a review of trade association memberships and assesses the effectiveness of the respective groups and the utility of Marathon Petroleum Corporation's new or continued participation. We recognize that viewpoints of other trade associations members may differ from our own. When this occurs, we seek to work with the association membership to promote reasonable compromise. However, we do not control the position that any trade association may take on any particular issue. Information concerning the company's participation in trade associations with dues of $50,000 or greater and that may engage in lobbying activities is provided for the years 2024, 2023, 2022, 2021, 2020. Trade Associations and Climate Policy We recognize the importance of a collective effort to develop a comprehensive sustainable energy strategy to provide all people on the planet a chance at prosperity while continuing to reduce greenhouse gas emissions. We also believe there should not be a "one-size-fits-all" business strategy that every company must adopt. An effective solution will take into account the enormous complexity of the global energy system, the varying needs from region to region, and companies' differing operational footprints. We are encouraged by our trade associations' recent positions on climate change and we believe our industry has an opportunity to coalesce around the development and delivery of solutions. It is critical that our trade associations are working to help our industry address climate challenges. When our trade associations engage on climate policy, we strive to encourage them to take positions that are not inconsistent with our commitment to sustainability, including lowering carbon intensity of our operations and products, expanding renewable fuels and technologies, and conserving natural resources. As part of this, we expect them to conduct their climate-related lobbying activities in alignment with the ambition of the Paris Agreement to reduce global GHG emissions and limit global warming to well below 2 degrees Celsius. To evaluate whether our trade associations currently meet this expectation, MPC weighs a number of considerations, including: * Whether the trade association explicitly supports the ambition of the Paris Agreement to reduce global GHG emissions and limit global warming to well below 2 degrees Celsius * Whether the trade association demonstrates a commitment to convene its membership to advance climate action * Whether the trade association advocates in ways that support our commitment to sustainability, which includes lowering carbon intensity of our operations and products, expanding renewable fuels and technologies, and conserving natural resources These considerations likewise inform our dialogue with our trade associations throughout the year and as to specific climate-related legislative proposals. Because we do not control the position of any trade association, they do not always end up endorsing our preferred positions. Our company may take positions that are different from, or extend beyond the scope of, trade association platforms. We believe that the recent climate positions of our trade associations, including the American Petroleum Institute, American Fuel & Petrochemical Manufacturers, National Association of Manufacturers, and Western States Petroleum Association (our largest national and regional trade associations), are not inconsistent with the ambition of the Paris Agreement. We commit to evaluate the positions of our trade associations over time and to disclose if their positions become inconsistent. To mitigate potential risk of future misalignment, we have engaged with each of our trade associations to communicate our lobbying expectations and our plans for ongoing evaluation and disclosure. Finally, we have communicated our commitments and expectations to our employees who liaise with these organizations.
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https://www.marathonpetroleum.com/Sustainability/Political-Engagement/
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At MPC, we identify and manage climate-related risks and opportunities at all levels of our organization under the leadership and guidance of our Board of Directors. [...] The Board's committees, including the Sustainability and Public Policy Committee, are responsible for specific areas of oversight and policy decision-making. Specific responsibilities are set forth in our Corporate Governance Principles and each committee's charter. [...] The Board has four committees, each of which is responsible for specific areas of oversight and policy decision-making, as set forth in our Corporate Governance Principles and each committee's charter. [...] • Development of policies and programs regarding sustainability, ESG and HES&S • Climate change and sustainability reporting and targets • Oversight of public policy positions • Governance framework and budgets for political contributions and lobbying activities • Legislative and regulatory developments and stakeholder engagement relating to sustainability, ESG and public policy matters.
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https://www.marathonpetroleum.com/content/documents/Responsibility/2021-MPC-MPLX-ClimateReport.pdf
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Opportunities and risks surrounding a just transition are identified and managed by company leadership with Board oversight through our sustainability governance framework.\n\nOur Board Sustainability and Public Policy Committee oversees engagement with stakeholders on sustainability, ESG and public policy matters, while our Compensation and Organization Development Committee oversees stakeholder engagement on compensation and human capital management matters.\n\nManagement of social aspects related to a just transition is embedded into the work of our leadership and cross-organizational teams. Related strategies are developed by committees of the executive leadership team and cascaded to align with plans at the operational level. Please see the [Governance section of our Sustainability Report for detailed](https://sustainability.marathonpetroleum.com/reader/59) information on our ESG Governance.
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https://www.marathonpetroleum.com/content/documents/Responsibility/JustTransitionReport.pdf
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###### Political Contributions and Advocacy\n\nWe believe participating in the political process is an\nessential part of advancing the meaningful exchange of\ninformation and views on issues that affect our company\nand our stakeholders. MPC takes part in the political\nprocess in several ways, including lobbying, contributing\nto grassroots activity, advocacy for specific issues,\nparticipating in trade associations, supporting an active\nemployee political action committee and, where lawful,\ndirectly supporting political candidates and ballot issues.\nAll these activities are subject to oversight by our Board\nof Directors, Sustainability and Public Policy Committee,\ngeneral counsel and senior vice president of Government\nAffairs and senior management.\n\nWe enhanced our disclosures in 2021 and utilize a webbased platform to provide comprehensive reporting.\n\n###### Climate Policy\nAs it relates to climate change, our public policy\nengagement is guided by our commitment to\nsustainability, including lowering the carbon intensity of\nour operations and products, expanding renewable fuels\nand technologies, conserving natural resources, engaging\nstakeholders and contributing in our communities. We\nsupport policies that complement this strategy and the\ninvestments that continue to transform our company.\nRecent examples of issue advocacy include policies that\nenable sustainable aviation fuel, carbon capture utilization\nand storage, cellulosic and renewable diesel pathways, and\ncarbon reduction opportunities under the Renewable Fuel\nStandard Program.\n\n###### Lobbying\nFederal lobbying reports filed by the company and\nretained lobbying firms are accessible through our website,\nwhere we also disclose the total amounts reported for\nfederal lobbying disclosures. At the state level, we disclose\na total of state-reported lobbying expenditures and\nprovide links to state databases of lobbying reports and\nregistrations.\n\nWe are committed to conducting climate-related lobbying\nactivities in alignment with the ambition of the Paris\nAgreement to reduce global GHG emissions and limit\nglobal warming to well below 2 degrees Celsius. MPC\nevaluates climate-related legislative proposals within the\ntotality of the bill in which they reside and determines\nthe level of engagement and support, if any, that is\nappropriate. Recognizing that not all proposed climaterelated legislation reflects sound government policy, that\nproposals may change significantly during the amendment\nprocess and that legislation may have implications\nunrelated to climate, MPC takes a thoughtful and\ndeliberate approach to the execution of this commitment.\n\n###### Trade Associations\nTaking part in trade associations is an important part\nof our role as an active member of our industry and\nthe business communities in which we operate. Trade\nassociations provide important ways for us to engage in the\ndevelopment of industry standards and practices and share\nadvances in science and engineering that inform the best\npractices of the future.\n\nWhen our trade associations engage on climate policy, we\ngenerally encourage them to take positions that are not\ninconsistent with our commitment to sustainability. For\nmore information on how we evaluate this expectation\nand for information on the climate positions of our trade\nassociations, please visit our website.
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https://www.marathonpetroleum.com/content/documents/Responsibility/Sustainability_Report/2021_MPC_Sustainability_Report.pdf
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The Sustainability and Public Policy Committee (the "Committee") is a standing committee of the Board of Directors of Marathon Petroleum Corporation (the "Company"). The purpose of the Committee is to assist the Board of Directors of the Company (the "Board") in fulfilling its oversight responsibilities for sustainability, environmental, social and governance ("ESG") topics and public policy matters. For purposes of this charter, the scope of oversight in these areas includes the Company's health, environment, safety and security ("HES&S") performance, climate risk, corporate responsibility, social impact, human rights and political engagement. [...] The Committee shall oversee the governance framework and budgets for the Company's contributions to political candidates, committees or parties, lobbying expenditures, and certain payments made to trade associations that engage in lobbying activities and shall review reports and disclosures regarding such contributions. The Committee shall also oversee the governance of any U.S. based political committee of the Company's employees.
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https://www.marathonpetroleum.com/content/documents/About/Committees_and_Charters/Sustainability_and_Public_Policy_Committee_Charter_July_31_2024.pdf
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Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]MPC is committed to conducting climate-related lobbying activities in alignment with the ambition of the Paris Agreement to reduce global GHG emissions and limit global warming to well below 2 degrees Celsius. At MPC, our impacts, risks and opportunities related to ESG topics are identified and managed by company leadership with the oversight of our Board. The Board has four committees, each of which is responsible for specific areas of oversight and policy decision-making, as set forth in our Corporate Governance Principles and each committee's charter.
Our executive leadership team has primary responsibility for sustainability strategies and standards. Sustainability is embedded in several cross-functional leadership committees that help ensure our objectives are incorporated into our OEMS standards and sustainability strategies. These are in turn cascaded throughout the organization. These standards and strategies are developed by committees of the executive leadership team and aligned with related procedures and plans at the operational level.
Communication and collaboration among the Board, its committees and management are critical to maintaining our aligned direction on sustainability matters.
Good governance is our way of ensuring MPC adheres to our mission and is accountable to our shareholders, our customers, our strategic partners and our employees. As an example, our key responsibilities of our Sustainability and Public Policy Committee include:
∙ Development of policies and programs regarding sustainability, ESG and Health, Environment, Safety, and Security (HES&S) ∙ Climate change and sustainability reporting and targets ∙ Oversight of public policy positions ∙ Governance framework and budgets for political contributions and lobbying activities ∙ Legislative and regulatory developments and stakeholder engagement relating to sustainability, ESG and public policy matters
Additional details can be found on page 72 of MPC's 2021 Sustainability Report (attached; and available at https://sustainability.marathonpetroleum.com/reader/72) and our Political Engagement Website under the Trade Association and Issue Advocacy sections (https://www.marathonpetroleum.com/Sustainability/Political-Engagement/).
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CDP Questionnaire Response 2022
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Does your organization have a public commitment or position statement to conduct your engagement activities in line with the goals of the Paris Agreement?[…]No, and we do not plan to have one in the next two years
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CDP Questionnaire Response 2023
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