Message from the CEO

Message from the CEO

Message from the CEO

In 2016, Tesoro experienced meaningful growth across our refining, marketing and logistics business, and we announced our intention to acquire Western Refining, a strategic acquisition that complements our business. As we work to capitalize on these exciting opportunities, we have remained committed to creating value not only for our shareholders, but also for the varied stakeholders we serve. Our Guiding Principles continue to be at the core of how we conduct business, operating with the highest levels of integrity and respect, and with a steadfast dedication to safety and the environment.

This Social Responsibility Report is an opportunity to reflect on the accomplishments of 2016:

Safety: For both personal and process safety, we once again surpassed our own targets in pursuit of our ultimate goal of reaching an incident-free workplace. We are continuing with the implementation and rollout of our Operations Excellence Management System, which helps enable the ongoing improvement of our safety processes.

Oil spill prevention and response: Over the past year, we conducted more than 78 emergency response drills and equipment deployments to practice, review and improve our emergency response capabilities as part of our ongoing commitment to environmental stewardship. We worked with federal, state, local and tribal stakeholders to share best practices and test emergency response technologies and incident management plans.

Air emissions: We’ve effectively reduced air emissions in our facilities by 17 percent since 2014, and we remain committed to continuing these efforts. Last year, we advanced operational efficiencies and installed new equipment, such as flare gas recovery units and ultra-low nitrogen oxide burners, as part of long-term investments that we expect will further reduce emissions.

The Company has also identified and is pursuing a number of significant projects that would benefit our communities and the environment. Proposed improvements include substantially reducing local emissions in the Los Angeles, California area, delivering lower carbon intensity crude oil to the West Coast, and voluntarily producing lower sulfur gasoline in Salt Lake City, Utah.

Our achievements from the past year serve as inspiration for our path ahead and our efforts to continue to set new, even more ambitious targets as our Company grows. Shared Value will remain a major influence on how we operate, and we will evaluate opportunities for growth by considering what’s best for our diverse stakeholders, including employees, communities, business partners and the environment.

We know that access to clean, affordable and reliable energy improves the quality of life, and we take great pride in responsibly working toward that goal every day.

Greg Goff

Sincerely,

Goff-Sig

Greg J. Goff
Chairman, President and Chief Executive Officer
Tesoro Corporation