2025 Valero Report on Guiding Principles - Flipbook - Page 71
Introduction
Safety
Environment
Community
Due to lack of data, relevancy in our business or competitive nature, as
applicable, we have opted for not disclosing the following topics:
• Product Speci昀椀cations & Clean Fuel Blends, Total addressable
market and share of market for advanced biofuels and associated
infrastructure, code EM-RM-410a.2; and volumes of renewable
fuels for fuel blending: (1) net amount produced, (2) net amount
purchased, code EM-RM-410a.3.
• Pricing Integrity & Transparency, Total amount of monetary losses
as a result of legal proceedings associated with price 昀椀xing or price
manipulation, code EM-RM-520a.1.
• Critical Incident Risk Management, Challenges to Safety Systems
indicator rate (Tier 3), code EM-RM-540a.2 ; and discussion of
measurement of operating discipline and management system
performance through Tier 4 indicators, code EM-RM-540a.3.
Greenhouse Gas Emissions
EM-RM-110a.1:
• Valero's re昀椀ning reportable segment (see our 2024 Annual Report on
Form 10-K, pages 7-10), includes the operations of our 15 petroleum
re昀椀neries, the associated activities to market our re昀椀ned petroleum
products and the logistics assets that support those operations
(re昀椀ning logistics assets). The methodology we use to calculate and
disclose direct GHG emissions (also known as Scope 1) is disclosed in
the GHG Emissions Methodologies on pages 18-19 of this report.
• In 2024, the direct GHG emissions (Scope 1) from the logistics assets
that support the re昀椀ning segment are de minimis.
• In 2024, the direct GHG emissions (Scope 1) related to our ethanol
and renewable diesel segments of 2.4 million metric tons CO 2 e
are excluded in this disclosure, as they are not applicable to the
SASB framework in the Oil & Gas - Re昀椀ning and Marketing industry
standard.
• Percentage of global re昀椀nery direct GHG emissions (re昀椀nery Scope
1) covered under an emission limiting regulation that is intended to
directly reduce GHG emissions, including the California Cap-andTrade Program, the United Kingdom Emissions Trading Scheme,
Quebec Cap-and-Trade System, and the U.S. federal New Source
Review (NSR) permitting program for greenhouse gases.
EM-RM-110a.2:
• Base year (2011) includes:
• Base year re昀椀ning Scope 1 emissions includes direct emissions
from the 15 re昀椀neries in our current portfolio. Sales, acquisitions
and closures were accounted for following SASB guidelines in the
calculation.
• Base year excludes Scopes 1 and 2 GHG emissions related to the
ethanol and renewable diesel segments.
• The methodologies we use to calculate Base year re昀椀ning
Scopes 1 and 2 GHG emissions are disclosed in the GHG Emissions
Methodologies (pages 18-19) of this report.
• Actual Scopes 1 and 2 GHG emissions:
• The methodologies we use to calculate and disclose re昀椀ning
Scopes 1 and 2 GHG emissions are disclosed in the GHG Emissions
Methodologies (pages 18-19) of this report. We include the marketbased approach when disclosing Scope 2 GHG emissions for
actual purposes.
• Expected Scopes 1 and 2 GHG emissions:
• Re昀椀ning Scopes 1 and 2 GHG emissions in future years and
expected reductions against the base year are estimated using
a combination of measured and estimated emissions data,
including the anticipated GHG emissions reductions derived from
operational improvements (Scope 1) and energy suppliers (Scope
2).
• Target years 2025 and 2035 and Performance to Date:
• Valero's performance exceeded the company's short-term target
to reduce/displace the equivalent to 63% of the tonnage from its
global re昀椀nery GHG emissions (Scopes 1 and 2) by 2025. Valero is
on track to reduce/displace the equivalent to 100% of the tonnage
from its global re昀椀nery GHG emissions (Scopes 1 and 2) by 2035
through Board-approved projects and CCS projects under
development.
• The initiatives included in the 2035 target are: (1) the absolute
expected reduction of re昀椀ning Scopes 1 and 2 GHG emissions
(against 2011 base year); (2) the displacements resulting from the
substitution of petroleum gasoline, diesel, naphtha and jet fuel
with the production of, blending of and credits from low-carbon
fuels. The calculation of displacements is disclosed in the GHG
Emissions Methodologies (pages 18-19) of this report; and (3) the
expected reductions of carbon emissions using CCS projects
under development.
People
Governance
Appendix
in conformity with acceptable engineering practices. Limited
assurance veri昀椀cations include (1) company-wide 2024 Scopes
1 and 2 GHG emissions, including re昀椀ning, renewable diesel and
ethanol segments; (2) company-wide 2024 life cycle GHG emissions
displacements from our renewable diesel and ethanol production,
as well as the blending of and credits from low-carbon fuels; (3)
company-wide 2024 GHG emissions from the use of our products
on an intensity basis (Use of Product GHG Emissions Intensity); (4)
re昀椀nery 2024 Scope 1 intensity per barrel; and (5) the validation of our
2035 GHG emissions reduction/ displacement target.
Air Quality
EM-RM-120a.2: global re昀椀neries located in or near areas of dense
population, which are de昀椀ned as urbanized areas with a population
greater than 50,000.
Water Management
EM-RM-140a.1: (1) Total water withdrawn by re昀椀ning operations, (2) total
water consumed in re昀椀ning operations; percentage of each in regions
with high or extremely high baseline water stress.
EM-RM-140a.2: In measuring the number of instances of noncompliance in any calendar year that resulted in formal enforcement
actions we look to the views of the SEC and de昀椀ne such number to be
the amount of environmental proceedings which occurred during that
calendar year that are (i) based on non-compliance with water quality
permits, standards or regulations and (ii) required to be disclosed
pursuant to Regulation S-K 103 (applying the numerical disclosure
threshold in disclosed in our applicable SEC 昀椀lings for such period).
Please see Valero’s Quarterly Reports on Form 10-Q 昀椀led during 昀椀scal
year 2024 and its Annual Report on Form 10-K for the year ended
December 31, 2024.
Hazardous Materials Management
EM-RM-150a.1:
• Hazardous waste amounts based on calculated dehydrated
hazardous constituents from wastewater disposed in underground
injection controls at our McKee re昀椀nery.
EM-RM-150a.2:
• Valero currently has 6 operating re昀椀ning USTs none of which had any
known releases or reimbursement fund claims during the reporting
period. Valero also owns 20 retail USTs that are independently
operated by third parties. While Valero does not operate those USTs,
Valero is not aware of any releases or reimbursement fund claims
related to these USTs during the reporting period. Valero also brands
independently owned and operated service stations that may
have USTs but Valero is not involved in the operation or remediation
obligations of such USTs. Finally, Valero has, in certain circumstances,
assumed or retained liability for legacy service stations sites, which
may have remedial obligations but any related USTs remaining
at those sites are owned and operated by a third party who is
responsible for their operation.
Workforce Health & Safety
EM-RM-320a.1: (1)(a)/(b) global re昀椀ning employee and contractor total
recordable incident rate (TRIR), which includes recordable injuries per
200,000 working hours, as de昀椀ned by the U.S. Department of Labor’s
Occupational Safety and Health Administration; (2)(a)/(b) fatality
rate for work-related fatalities for global re昀椀ning employees and
contractors; (3) NMFR data is not available.
Critical Incident Risk Management
EM-RM-540a.1: global re昀椀ning Tier 1 process safety event (PSE) rates
and Tier 2 PSE rates as de昀椀ned by the API RP-754.
Activity Metric
EM-RM-000.A and EM-RM-000.B: See Valero’s 2024 Annual Report on
Form 10-K, page 50 and page 7, respectively.
Footnotes for SASB Data
(a) The performance data presented is based on the company’s
interpretation and judgment of the SASB framework in the Oil & Gas
– Re昀椀ning & Marketing industry standard. References to speci昀椀c SASB
Code numbers do not indicate the application of any or all de昀椀nitions,
metrics, measurements, standards or approaches set forth in the SASB
framework.
(b) SASB standards are not intended to, and cannot, replace any legal
or regulatory requirements that may be applicable to the company’s
operations.
• Copies of independent limited assurance veri昀椀cations can be
found on our website at www.valero.com > Investors > ESG > Other
Reports. All calculations were found to be science-based and
Valero Report on Guiding Principles •
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