In the fall of 2017, Marathon Petroleum Corporation (MPC) produced a report on various climate change scenarios and the impact they could have on its business. MPC is the third-largest refiner in the U.S., with a capacity of 1.8 million barrels per day. Its gasoline is sold through 5,600 independently owned gas stations.
The report covers climate themes relevant to the oil and gas industry such as greenhouse gas emissions, physical risks, and transitional risks associated with climate-related policies. These themes are considerations in MPC’s strategy-setting, business planning, and risk management.
MPC’s scenario report is not simply about the risks of climate change, but also opportunities for the company in a carbon-constrained world. For instance, MPC continuously optimizes its assets to make them more efficient and has taken steps to reduce flaring, improve energy efficiency, and invest in renewable fuels.
Praxis Mutual Funds® and other members of the Interfaith Center on Corporate Responsibility have encouraged MPC to publish a report on climate change and adopt an emissions reduction plan for nearly five years. In 2014 and 2015, Praxis co-filed resolutions asking Marathon to produce a climate change management plan. These resolutions helped to spur a series of conversations with the company.
Praxis applauds MPC for its climate-related scenario publication, and hopes it will lead to a more efficient and resilient company.