Marathon Petroleum

Marathon Petroleum has set a target to reduce its scope 1 and 2 emissions intensity by 30% by 2030 compared to 2014, and reduce absolute scope 3 emissions by 15% by 2030 compared to 2019. Although the company is currently on track to achieve the targets, neither aligns with the company’s 1.5°C pathways. The company should increase the ambition of its current targets to align with its 1.5°C pathways and develop a long-term scope 1, 2 and 3 target to reach net-zero by 2050. Additionally, the company should set intermediate targets at gaps of no more than five years to incentivise near-term action on longer-term goals.

Marathon Petroleum’s transition plan is focused on the development of biofuels in the short-term. The company aims to increase the proportion of biofuels from 0.3% in 2019 to 1.4% in 2024. However, the company does not outline plans beyond 2025. There is no evidence that the company is committed to transitioning away from fossil fuels in the long-term. The company should establish a time-bound action plan, including details of long-term planned investment, that outlines how it will transition to a low-carbon economy.

Marathon Petroleum began renewable diesel production in 2020 and is converting a second refinery into a renewable diesel plant in a joint venture with Neste. Additionally, the company is researching advanced biofuels through its subsidiary, Virent, and has acquired a 49.9% interest in LF Bioenergy, a biogas producer. However, biofuel production is currently minimal compared to its oil refining and gas processing. After completing the second renewable diesel plant, the company expects a capacity of 914 million gallons per year by 2024, just 2% of its 2021 refined product volume from its 13 refineries. Additionally, the company’s main biofuel feedstock is soybean, meaning the renewable diesel is classified as a first-generation biofuel instead of a sustainable advanced biofuel. To successfully transition, the company should aim to produce advanced biofuels to to replace oil and gas.

Marathon Petroleum has set a target to reduce its scope 1 and 2 emissions intensity by 30% by 2030 compared to 2014. It has also set a new target to reduce scope 3 emissions by 15% by 2030 compared to 2019. The company has also committed to reducing methane emissions by 75% by 2030 compared to 2016.

The company’s transition plan focuses on the development of biofuel products. It aims to become one of the largest producers of renewable diesel globally by early 2024, with a total capacity of 914 million gallons per year. However, the company does not demonstrate a credible long-term transition plan beyond 2025.

Marathon Petroleum is expanding its production of renewable diesel by converting its refinery in Martinez, California, to produce renewable diesel in a 50/50 joint venture with Neste. It has also begun construction of a USD 350 million soy feedstock processing facility. In 2023, the company acquired a 49.9% stack in the biogas company, LF Bioenergy. The company does not disclose figures for low-carbon capital expenditure or research and development.

Marathon Petroleum’s scope 1 and 2 emissions intensity decreased by an average of 3% year-on-year between 2017 and 2021. However, this is not at the rate required by its 1.5°C pathway between 2021 and 2026 of 7% year-on-year. In 2020, the company began its production of renewable diesel when it converted its Dickinson refinery into a renewable diesel plant.

Although the company is investing in the expansion of its biofuels business area, it remains a small proportion of the company’s total product offering. In 2021, Marathon Petroleum produced 400 million gallons of renewable diesel, however, this represents less than 1% of the company’s refined fossil fuel products, which totaled 43.5 billion gallons. When the company’s second biodiesel plant becomes fully operational, it is expected to increase the proportion of biofuel products to 1.4% in 2024.

No evidence was found of the company’s commitment to social dialogue or of the categories of stakeholders the company engages with on a just transition. The company commits to engaging in social dialogue with workers and unions. It also discloses the categories of stakeholders it engages with on a just transition, including employees, communities, union representatives, and suppliers. However, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders. No evidence was found of the company undertaking low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in its just transition planning.

The company discloses the actions it takes to create jobs locally through the conversion of its refinery to renewable diesel facility. It also discloses the measures it takes to ensure that these jobs embed equality of opportunity for women and vulnerable groups. In particular, the company’s Women’s Employee Network strives to attract, retain, inspire, support and empower women at the company. However, no evidence was found of the company committing to create and support access to green and decent jobs as part of the low-carbon transition. Furthermore, no relevant disclosure was found of the company’s assessment of employment dislocation risks. The company discloses the actions it takes to provide training opportunities for workers and affected stakeholders. For instance, it provides employee training courses and leadership development programs. However, no relevant disclosure was found of the company embedding equality of opportunity for women and vulnerable groups in these actions. Furthermore, no evidence was found of the company having a process for identifying skills gaps for workers and affected stakeholders or a public commitment to help workers displaced by the transition to reskill or upskill.

The company demonstrates how it contributes to addressing the impact of the low carbon transition on the social protection for workers and affected stakeholders. For instance, the company offers a top-tier employee benefits package to support workers affected by staffing reductions during the low carbon transition. This includes enhanced severance payments that consider factors such as pay, tenure, and a prorated portion of their target bonus. However, no relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders. No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

The company commits to respecting human rights and the ILO fundamental rights at work, and it expects its business relationships to respect the ILO fundamental rights at work. No evidence was found of the company’s process to identify, assess and mitigate salient human rights risks in its own operations and supply chain. No evidence was found of the company disclosing the stakeholders whose human rights have been affected by its activities. The company does, however, have a grievance mechanism available to workers and external stakeholders.

The company commits to respecting the health and safety of its workers and expects the same commitment of its business relationships. No evidence was found of a time-bound target for paying all workers a living wage. While the company discloses the proportion of its direct workforce covered by collective bargaining agreements, no relevant disclosure was found of the company’s required working hours. The company discloses some indicators of workforce diversity, including the age, gender and race/ethnicity of its workforce by employee category. No evidence was found that the company commits to gender equality and women’s empowerment.

No evidence was found that the company commits to protecting personal data and that it has a privacy statement regarding the collection, sharing and access to personal data. No relevant disclosure was found of the company’s global tax strategy and the corporate income tax paid for each relevant jurisdiction. The company does have a policy prohibiting bribery and corruption, and it includes corresponding clauses in its contracts with business relationships. No evidence was found that the company has a lobbying and political engagement policy and that it specifies that it does not make political contributions. Moreover, no relevant disclosure was found of the company’s expenditure on lobbying activities.