2026 Valero Report on Guiding Principles - Report - Page 56
Notes
1 See page 2 of our annual report on Form 10-K for the year ended
December 31, 2025 for more information on SAF.
2 Low-carbon fuels reduce life cycle GHG emissions. Life cycle GHG
emissions reductions depend on the life cycle analysis methodology
or pathway used, carbon intensity of the feedstocks, and energy
intensity in the supply chain, such as feedstock gathering mileage
or distribution mileage of 昀椀nished product. Renewable diesel's life
cycle analysis carbon intensity was calculated using methodologies
approved by the jurisdictions where these fuels were sold and
veri昀椀ed by third parties. Neat SAF’s life cycle analysis carbon intensity
was sourced from the International Civil Aviation Organization’s
(ICAO) Carbon Offsetting and Reduction Scheme for International
Aviation (CORSIA) default carbon intensities associated with various
feedstocks utilized in our neat SAF production. Our renewable diesel
can result in up to 80% lower life cycle GHG emissions, compared with
traditional diesel. Similarly, our neat SAF can also result in up to 80%
lower life cycle GHG emissions, compared with the CORSIA baseline
for traditional jet. In the case of corn ethanol, life cycle GHG emissions
reductions could be impacted by the type of feedstocks used, the
energy intensity in the supply chain or whether carbon capture
and storage is utilized. Ethanol's life cycle analysis carbon intensity
was sourced from the Argonne National Laboratory GREET model.
When compared with the benchmark carbon intensity of gasoline
presented in this model, our ethanol can result in at least 30% lower
life cycle GHG emissions.
3 ASTM D7566, Standardized Speci昀椀cation for Aviation Turbine Fuel
Containing Synthesized Hydrocarbons.
17 Third-party scenarios and other third-party reports, conclusions or
data discussed in this report re昀氀ect the modeling, beliefs, assumptions
and outputs of their respective authors, not Valero, and their use,
reference to, or inclusion herein does not constitute or imply an
endorsement by Valero of their underlying assumptions, likelihood
or probability. Any reference to Valero's support of, alignment with,
work with, or collaboration with a third party within this report does
not constitute or imply an endorsement by Valero of any or all of the
positions or activities of such third party.
18 The IEA Sustainable Development Scenario (IEA SDS) as detailed
by the International Energy Agency (2020), World Energy Model
Documentation 2020 version, IEA, Paris, updated May 7, 2021. All rights
reserved.
19 Valero transitioned away from AFFFs (aqueous 昀椀lm-forming
foams), which contain PFAS or per-and poly-昀氀uoroalkyl substances.
20 Re昀椀ning industry employees (U.S. Bureau of Labor Statistics, year
2024).
21 Tier 1 process safety event (PSE) rate and Tier 2 PSE rate as de昀椀ned
by the American Petroleum Institute (API) Recommended Practice 754
– Process Safety Performance Indicators. Total recordable incident
rate or TRIR 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.
4 EV's average carbon intensity in the U.S. is calculated using the
Department of Energy publication FOTW #1374, December 23, 2024:
Model Year 2024 Electric Vehicles Offer Consumers a Wide Range in
EV ef昀椀ciency; the U.S. Environmental Protection Agency’s e-Grid 2023
for U.S. average CO 2 emissions from power generation; and EV's life
cycle analysis calculations conducted internally by Valero.
22 For details on CTEMS (Commitment to Excellence Management
System) please go to pages 24 and 25 under Environmental
Management Systems.
5 Is it starch or cellulose? National Renewable Energy Laboratory
(NREL) offers answers that could unlock incentives for making
cellulosic ethanol (June 16, 2021) https://www.energy.gov/eere/
bioenergy/articles/it-starch-or-cellulose-nrel-offers-answers-couldunlock-incentives-making
24 Number of incidents reportable to regulatory agencies are
measured on a weighted basis and includes application of a severity/
volume enhancer to increase the number of incidents recorded for
more signi昀椀cant environmental events.
6 See https://www.darlingii.com/en/solutions/feed for details on
animal fat and used cooking oil
7 This process describes practices common to international
sustainability certi昀椀cation schemes such as the International
Sustainability & Carbon Certi昀椀cation (ISCC) scheme and the
Roundtable on Sustainable Biomaterials (RSB) scheme, under which
Valero holds various certi昀椀cations. However, not all low-carbon
fuel is certi昀椀ed under these frameworks, based either on customer
preference or end market destination. There are similar requirements
for mass balance and supply chain traceability under federal and
state low carbon fuel programs that Valero participates in.
8 Sources: U.S. Energy Information Administration (EIA),
“Consumption of Renewable Diesel Continues General Growth Trend
on the U.S. West Coast,” Today in Energy, February 18, 2025; and Gary
Yowell and Leigh Noda, “Diesel’s GHG Reduction Success Story: How
California’s Second-Biggest Transportation Fuel Emissions Source Is
Ahead of Schedule,” Stillwater Associates, April 7, 2026.
23 American Petroleum Institute (API), the governing body for industry
process safety events (PSE) metrics now reports industry-wide PSE
data on 昀椀ve-year averages.
25 Re昀椀nery energy intensity analysis starts in the year 2012 since it
was the 昀椀rst year after the consolidation of our re昀椀nery portfolio.
26 Re昀椀nery hazardous and exempted waste is solid waste as de昀椀ned
by the U.S. EPA, Resource Conservation and Recovery Act (RCRA).
27 Based on EPA's WaterSense average U.S. household consumption.
U.S. Environmental Protection Agency. (n.d.). How we use water.
WaterSense. https://www.epa.gov/watersense/how-we-usewater#Daily%20Life
28 Beginning in 2022, fresh water withdrawn includes volume that
was withdrawn and sold. Values in prior years include only freshwater
used in Valero's operations.
29 Valero’s total investment in global employees includes direct
compensation; bonus payment; incentive stock awards; employee
bene昀椀ts, including retirement, medical and welfare bene昀椀ts as well as
other employment-related investments and expenses.
30 Includes training related to regulatory compliance, leadership
and other topics.
9 See LCFS Pathway Certi昀椀ed Carbon Intensities: https://ww2.arb.
ca.gov/resources/documents/lcfs-pathway-certi昀椀ed-carbonintensities, and the Certi昀椀ed Fuel Pathway Table within the page for
total pathways certi昀椀ed from January 2019 until April 2026.
31 Average includes salary, health and wellness bene昀椀ts, 昀椀nancial
bene昀椀ts and other incentives.
10 Source: U.S. Department of Energy, agency websites, industry
consultants and Valero estimates.
33
See 2026 Proxy Statement, page 71.
34
Valero Environmental Justice Policy Statement
11 California 2030 Transportation Fuel Goal pending Of昀椀ce of
Administrative Law approval of amendments adopted by CARB in
November 2024.
12 CORSIA stands for Carbon Offsetting and Reduction Scheme
for International Aviation. It is a global market-based measure
developed by the International Civil Aviation Organization (ICAO) to
address carbon dioxide emissions from international aviation.
13 Currently 130 nations voluntarily participate
14
European Union’s ReFuelEU Aviation regulation
15 Member of the EU and will be covered by ReFuelEU Aviation
56
16 See GHG Emissions Methodologies beginning on page 11 for details
on all calculations featured in this section. For details on Valero's 2035
Medium-Term Target, see page 10.
32 Unless otherwise noted, data re昀氀ects Valero’s global workforce as
of December 31, 2025. See 2025 Valero Form 10-K, page 13.
35 Including net proceeds from major fundraising events such as the
Valero Texas Open and the Valero Bene昀椀t for Children.
36
Includes donations by Valero and the Valero Energy Foundation.
37 Find more information in the Valero Investor Presentation, April
2026, Slide 5 at www.valero.com > Investors > Events and Presentations.
38 Measurements re昀氀ect our reasonable determinations based
on available data and information regarding the composition and
holdings of our stockholders over the course of our engagement
efforts from 2025 and into 2026 before our Annual Meeting of
Stockholders.
39 See 2026 Proxy Statement, Compensation Discussion and Analysis,
beginning on page 24.
