2026 Valero Report on Guiding Principles - Report - Page 25
In 2025, Valero achieved its bestever company-wide environmental
performance and second best-ever refinery
environmental performance, as measured
through our Environmental Scorecard
Incidents metric.24
1. Commitment to Excellence Management
System (CTEMS):
CTEMS is a proprietary systematic approach to planning,
executing, checking, and acting to improve everyday
work activities at many of our re昀椀neries and plants. CTEMS
is structured around nine core elements, each described
below and containing multiple expectations to achieve
our commitment to excellence.
Leadership Accountability – Through active
participation in CTEMS leaders demonstrate commitment
to and personal accountability for operational excellence
as a core value. Leaders make employees aware
of CTEMS expectations, actively involve them in the
processes, and share learning across the organization.
They review CTEMS performance results annually.
Protecting People & Environment – A formal process
ensures that our ongoing operations are compliant with
relevant health, safety, and environmental laws and
regulations. Identifying and assessing risks and potential
environmental impacts are components of this process.
Environmental performance indicators are established,
monitored, and reported, and programs and processes
drive improvement.
People & Skills Development – Training processes ensure
that employees receive appropriate training throughout
their employment. We expect teams to effectively
communicate with each other, thereby fostering
collaboration, creative thinking, teamwork, and open
communication.
Operations Reliability & Mechanical Integrity – Quality
assurance programs, inspections, and preventive
maintenance standards ensure equipment reliability.
Valero’s internal
risk matrix is
used to evaluate
hazards, incident
The Valero St. Charles
investigations,
Re昀椀nery, with zero reportable
recommendations,
environmental events in 2025,
process hazards
was awarded the Valero
analysis results,
Chairman’s Environmental
and high-risk
activities.
Award for a second time.
Technical Excellence & Knowledge Management –
The Project Development and Execution Process (PDEP)
incorporates health, safety, environmental, reliability,
operability, maintainability, and loss prevention standard
requirements into the selection, development and
execution of projects. An internal incident and signi昀椀cant
near-miss reporting and investigation process is in place,
and a company-wide tracking system ensures timely
sharing of information and closure of corrective actions.
Change Management – A process is used to ensure that
permanent and temporary changes are in accordance
with the Valero Management of Change Standard.
Business Competitiveness – Programs are in place to
improve energy and operating ef昀椀ciency. Competitive
benchmarks are used and evaluated, and gap closure
plans are implemented. A procurement process supports
safe and reliable plant operations. Our annual strategic
planning drives business competitive improvement.
External Stakeholder Relationships – Programs, such
as community advisory panels facilitate meaningful
dialogue with local communities and raise awareness of
potential community issues.
Assurance & Review – CTEMS is assessed periodically
using a disciplined and systematic approach. The
effectiveness of all policies, programs, processes and
procedures is reviewed to ensure they are appropriate
and address the commitment for continual improvement.
2. Environmental Excellence and Risk
Assessment (EERA):
EERA elevates the environmental audit and compliance
functions to an environmental excellence vision. Its
main goal is to assess the design and effectiveness of
environmental performance regarding speci昀椀c excellence
objectives, and to facilitate continuous improvement across
our operations. EERA de昀椀nes more than 100 expectations
and involves a proprietary 昀椀ve-step process (generally
summarized on the next page) using due diligence on
data and 昀椀eld assessments reviewed by a combination of
external and internal subject matter experts.
Valero Report on Guiding Principles •
25
