2024 ESG Report FINAL - Report - Page 18
GHG Emissions
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Value Chain Analysis
With the intent to address the demands of some stakeholders to disclose Scope 3 GHG emissions, we conducted a
value chain analysis. The analysis proved to be complicated and yielded insuf昀椀cient data to meaningfully quantify
GHG emissions related to the use of the products we manufacture and highlighted the dif昀椀culty in accurately
assessing upstream and downstream carbon emissions.
With approximately three million transactions conducted
yearly with more than 3,000 counterparties upstream and
downstream of our re昀椀neries (for feedstock purchases
and product sales, respectively), we found that many of
our crude oil feedstock suppliers provided limited or no
public disclosure of Scopes 1 and 2 GHG emissions. Similarly, an analysis of our more than 2,800 customers revealed
that many, including some of the largest purchasers of our fuels, have limited or no public disclosure of Scopes 1 and
2 GHG emissions. Furthermore, as a merchant re昀椀ner, we are unable to ascertain the 昀椀nal use of all of our products.
Although most of our products are sold as transportation fuels, some of our products have multiple potential uses.
For example, some of our products, including naphtha and lique昀椀ed petroleum gases, have several downstream uses
aside from combustion, such as in plastics and petrochemicals production.
After careful consideration, the lack of publicly available GHG emissions disclosures proved to be an insurmountable
hurdle for accurately calculating our value chain GHG emissions. Another limitation of the value chain analysis and
methodologies, such as the GHG Protocol, is its inability to take into consideration the life cycle GHG emissions
bene昀椀ts from low-carbon fuels.
To address the limitations of the value chain analysis, we introduced a metric called Use of Product GHG Emissions
Intensity, which is the GHG emissions intensity of the assumed use of company-wide products on a per barrel basis,
and recently, we added the same metric on a per unit of energy basis. Further details on these metrics are provided
on pages 20 and 21.
Independent Limited Assurance
Since 2021, we have engaged one or more independent third parties to evaluate, validate and/or verify our GHG
emissions disclosures, which we intend to continue completing annually going forward. In 2024, this included
limited assurance on/of:
• Company-wide 2023 GHG emissions (Scopes 1 and 2), including re昀椀ning, renewable diesel and ethanol.
• Company-wide 2023 GHG emissions reductions achieved with our renewable diesel and ethanol
production, as well as the blending of and credits from low-carbon fuels.
• Company-wide 2023 Use of Product GHG Emissions Intensity per barrel and per unit of energy.
• The validation of our 2035 GHG emissions target.
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 in conformity with
acceptable engineering practices.
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