Process Safety Process safety is about ensuring containment of hazardous materials to avoid harming people and the environment. We recognize the need to be proactive and continuously improve. Accordingly, we have identified these focus areas: • Leveraging process hazard assessment best practices across the company, with added emphasis on safeguards to prevent the highest consequence events • Reducing the number of events caused by imprecise execution of tasks • Improving our learning efficiency and effectiveness Our active participation in trade associations and benchmarking groups also helps us identify opportunities for our business while advancing overall industry performance. PROCESS SAFETY EVENTS PSEs are unplanned or uncontrolled releases of hazardous material. We closely monitor and measure our performance in this area. Phillips 66 works to eliminate PSEs by applying best practices in design, engineering, operations and maintenance. We also perform hazard analyses and use change-management procedures to mitigate risk. We routinely audit our safety, mechanical integrity, operating and maintenance programs. We investigate serious incidents and near misses to develop corrective actions and capture learnings. We create and improve our procedures to ensure employees and contractors are aware of hazards and how to address and mitigate them. Tier 1 and Tier 2 PSEs are defined by the API Recommended Practice 754. Tier 1 PSEs are the most significant type of unplanned or uncontrolled release of material from primary containment. Tier 2 events have lesser consequences than Tier 1 events, yet they are still important. All Tier 1 and Tier 2 events are investigated to determine the underlying causes so we can act to prevent recurrences. Our goal is zero PSEs. In 2021, our Refining business unit had zero energy isolation-related Tier 1 PSEs, and its overall Tier 1 process safety event rate of 0.05 led our industry. Our 2021 companywide PSE Tier 1 and Tier 2 rates were better than the refining industry average rate. Optimization To thrive in the energy transition, we must focus on efficiencies within our processes and decision making, leverage digital capabilities, and advanced automation. AdvantEdge66 is an enterprisewide digital transformation program focused on utilizing data, artificial intelligence, and machine learning to deliver agility, efficiency and value. Optimizing our current operations is essential to operating a sustainable business. Our Value Chain Optimization Engine effort released nine new tools in 2021. These tools include cloud-based applications that help us improve performance projections, scenario planning and supply comparisons. Safety meeting at Ponca City Refinery PONCA CITY, OK 24 PHILLIPS 66 2022 SUSTAINABILITY REPORT OUR BUSINESSES: TODAY AND TOMORROW ENVIRONMENT AND SAFETY GOVERNANCE STAKEHOLDER ENGAGEMENT