38 Water Management Water management is a critical component of our business, and we continue to work with stakeholders to improve our performance, while also reducing consumption, by: • Taking a risk-based approach to water management and integrating water strategy and water security into our long- term planning and business processes. • Engaging with local governments, industry associations, suppliers and regulatory agencies to develop innovative solutions in water management and conservation in water-stressed areas. • Assessing and managing regional water risks through updated sustainability assessments. • Complying with water management laws and regulations. • Protecting existing water resources through sound water management policies. • Recycling and reusing water to improve efficiency. Most of our water consumption takes place in our refining operations. Based on the World Resources Institute’s (WRI) Water Risk Atlas tool, Aqueduct, we determined that only two of our 15 refineries are located in regions with high baseline water stress. Reduction and mitigation initiatives include the evaluation of reused municipal wastewater for cooling tower purposes and acquisition of secured water rights. Water scarcity can be a risk not only to communities but to the refining process. Water is needed for cooling and also in the form of steam for heating. In addition, water plays an important role in processing feedstocks. 9 Source: Water Footprint Calculator. Our water-risk-based approach is integrated into our operational and long-term planning to mitigate and reduce water risks. We have taken several steps we believe are necessary to secure our operations in conditions of water scarcity. • At our Wilmington refinery , we have secured treated municipal wastewater to supplement our cooling tower makeup water. Upon project completion, we expect to save up to 420 million gallons of potable water per year. That is roughly the annual amount consumed by 9,000 U.S. households. 9