Month: August 2024

Marathon Petroleum Corporation (NYSE: MPC) and its midstream affiliate MPLX LP (NYSE: MPLX) have published two joint reports that provide details on the companies’ efforts to advance their sustainability as the energy industry continues to evolve.

The companies’ Sustainability Report and Perspectives on Climate-Related Scenarios report highlight MPC’s and MPLX’s recent accomplishments and progress in strengthening their resilience, innovating for the future, embedding sustainability in their decision-making, and addressing the risks and opportunities inherent in the energy industry’s evolution.

The Sustainability Report provides insight into the companies’ progress on greenhouse gas emissions reductions; lowering the carbon intensity of their fuels; reinforcing a strong safety culture; cultivating an engaged and energized workforce; engaging with communities; board oversight and risk management; and strong compliance and ethics programs, among other topics. The Perspectives on Climate-Related Scenarios publication – MPC’s and MPLX’s eighth annual report aligned with the Task Force on Climate-Related Financial Disclosures framework – details the companies’ analysis of strategic risks and opportunities within the energy landscape.

“At MPC and MPLX, we have long recognized that sustainability is critical to long-term success in our ever-changing industry,” said President and Chief Executive Officer Maryann Mannen. “This encompasses our responsibilities to minimize our environmental footprint, invest in the communities where we operate, and foster an inclusive culture in our workplaces. And, as we seek to maintain and advance our sustainability efforts, nothing is more important than the safety of our people and our neighbors. By embedding safety into our daily work, we invest in the longevity and sustainability of our industry.”

While the two reports have different focuses, both reports also emphasize common themes. For example, the reports highlight the companies’ time-bound, realistic GHG emissions reduction goals, including a 30% reduction of Scope 1 and 2 GHG emissions intensity by 2030 from 2014 levels. Because MPC is on track to reach the goal prior to 2030, the company is extending this target to a 38% reduction from 2014 levels by 2035. Similarly, MPLX has made significant progress on its methane emissions intensity goal of a 75% reduction of its Gathering and Processing segment methane emissions intensity by 2030 from 2016 levels. By the end of 2023, MPLX had achieved a 57% reduction.

“Our people have enabled us to accomplish so much, and we have ambitious goals that inspire our continued progress,” said Mannen. “I’m optimistic about what the future holds for Marathon Petroleum and MPLX, and our sustainability-driven approach supports our relentless commitment to be a better company.”

Sustainability Report

2024 Climate Related Perspectives

In the ever-evolving corporate responsibility landscape, the Corporate Sustainability Reporting Directive (CSRD) represents an advantageous opportunity for businesses. Initiated by the European Union, the CSRD goes beyond mere legal compliance. The structured framework offers businesses the chance to transform their business strategy by encouraging transparency, accountability, and long-term viability. Given CSRD’s rising prominence, organizing a strong reporting strategy is essential for business to remain competitive and relevant to stakeholders.

Understanding CSRD

The CSRD builds upon the existing Non-Financial Reporting Directive (NFRD) by broadening its scope and requirements. Approximately 50,000 large listed and smaller and medium-sized enterprises fall under the scope of CSRD, which will require them to disclose detailed information on their policies, impacts, and risks to people and planet. This move is driven by the growing demand for corporate transparency from stakeholders, including investors, consumers, and regulators.

Why Businesses Should Consider CSRD

From enhanced transparency, reputational benefits, risk management, competitive advantages, to improved decision-making – there are many reasons why a business should consider complying with CSRD beyond legal obligation. By complying with CSRD, businesses openly demonstrate commitment to sustainable and ethical governance practices. That transparency builds trust with key stakeholders, such as investors and consumers. Transparency in reporting can attract investors who are increasingly prioritizing Environmental, Social, and Governance factors in their decision-making processes.

Complying with CSRD also offers the opportunity for enhanced risk management and decision-making. Given the sheer amount of data required for compliance with CSRD, the process provides valuable insights into a company’s operations. This can lead to discovering data gaps, systems opportunities, and potential risks. By analyzing the required data, businesses can identify areas for improvement and close gaps, enhancing overall efficiency. This will lead to quicker and more organized reporting for other frameworks in the future.

Best Reporting Strategies for CSRD

Thoroughly understand the CSRD requirements. Businesses should familiarize themselves with data points and the corresponding timelines.Organize a reporting and data management team that will be responsible for CSRD data gathering and management.Conduct a double materiality assessment to evaluate which CSRD data points are required. The first step of CSRD compliance is a double materiality assessment.Complete a CSRD gap assessment to assess where potential data gaps exist. Once gaps are identified, close the gaps wherever possible.Prepare the CSRD sustainability report by consolidating all the necessary data points into one, digestible format.Integrate sustainability strategy with business strategy. By aligning business strategy with CSRD, companies can ensure long-term success.

Conclusion

The CSRD is a significant step towards greater corporate accountability and transparency. By complying with CSRD, businesses gain a competitive edge, build trust with stakeholders, and set themselves up for future reporting success.

Have further questions about CSRD compliance or double materiality assessments? Connect with our team today!

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