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Tesoro Sustainability Report GHG 2011

We believe that sustainability reporting on environmental, social and governance (ESG) business practices makes a company more responsive to the global business environment, an environment with finite natural resources, evolving legislation, and increasing public expectations of corporate behavior. Reporting also helps companies better integrate and gain strategic value from responsibility efforts, identify gaps and opportunities, develop company-wide communications, publicize innovative practices and receive feedback.
Many companies are preparing sustainability reports which provide disclosure on how they are positioning themselves to be viable long-term investments. According to a 2008 KPMG report on sustainability reporting, of the 250 Global Fortune companies, 79% produce reports compared to 52% in 2005. Of the 100 top U.S. companies by revenue, 73% produce reports compared to 32% in 2005. Increasingly, companies are identifying ESG factors relevant to their business and addressing them strategically through sustainability programs and reports.
The Carbon Disclosure Project (CDP), representing 534 institutional investors globally with $64 trillion in assets, annually requests disclosure from companies on their climate change management programs. Companies are increasingly providing this climate change disclosure. The response rate to the 2010 CDP for the S&P 500 was 70%, compared to a response rate of 47% to the 2006 survey.
Transparency on climate change is particularly crucial as it is one of the most financially significant environmental issues currently facing investors; The Intergovernmental Panel on report observed that, “taken as a whole, the range of published evidence indicates that the net damage costs of climate change are likely to be significant and increase over time.”
According to Tesoro Corporation’s 2010 annual report, the company acknowledges that its business is impacted by environmental risks inherent in refining operations and that their operations are subject to hazards that could expose the company to potentially significant losses.
Tesoro Corporation did not respond to the 2010 CDP survey.
Tesoro Corporation has not prepared a sustainability report, or any similar report.
Shareholders believe that Tesoro Corporation has not provided adequate disclosure of its BSG risk exposure and its BSG risk management efforts.
Shareholders request that the Board of Directors issue a report describing the company’s short- and long-term responses to ESG~related issues and associated risks, including greenhouse gas emissions data and plans to manage emissions. The report should be prepared at information, and made available to shareholders by November 30, 2011.