2024 ESG Report FINAL - Report - Page 3
A Message from Our CEO
2023 was another strong year for Valero, with our company achieving its
best year ever for both re昀椀ning environmental scorecard incidents and
re昀椀ning mechanical availability. These accomplishments are a testament
to our long-standing commitment to safe, reliable and environmentally
responsible operations. This will always be our top priority.
Last year, the company also set many records, including annual sales
volumes for our wholesale system and for our renewable diesel segment,
as well as throughput volumes for our ethanol business. Valero delivered
strong 昀椀nancial performance in 2023, earning $24.92 per share, the
second highest in our company history.
As I think about our community, I am proud of Valero’s culture and legacy
of giving back, as demonstrated through the successful fundraising
activities we conducted during the year such as the Valero Texas Open
and Bene昀椀t for Children, as well as the incredible generosity of our
employees through volunteerism and employee giving.
Team Valero is committed to executing strategic projects that enhance the earnings capability of our
business and expand our long-term competitive advantage. Our premier re昀椀ning portfolio and low-carbon
fuels businesses have made us the best-in-class producer of liquid transportation fuels and products that
are essential to modern life.
On the re昀椀ning side, we are the lowest-cost producer while achieving reliable top-quartile operations.
For many years, we have prioritized capital expenditures to sustain our operations to ensure safety and
reliability. We are pursuing projects focused on increasing operational ef昀椀ciencies and feedstock 昀氀exibility,
optimizing the value of our product mix and maximizing the utilization of existing conversion capacity.
On a consolidated basis, we have invested more than $5.4 billion in a pro昀椀table low-carbon portfolio. Our
renewable diesel segment continues to target high-return projects in growing low-carbon markets and
we are also diversifying as demonstrated by the development of Sustainable Aviation Fuel or SAF. The
SAF project at our renewable diesel plant in Port Arthur, Texas, is progressing ahead of schedule and is
expected to be operational in the fourth quarter of 2024. With the completion of this project, the renewable
diesel segment is expected to be one of the largest manufacturers of SAF in the world.
We also continue to evaluate and develop economic projects to further reduce the carbon intensity
of our ethanol business. With that in mind, we expect to participate as a shipper on a large-scale
proposed carbon capture pipeline connecting to eight of our ethanol plants. Once implemented, we
estimate a substantial reduction of carbon as well as an uplift in the economics of this segment.
Looking ahead, we remain focused on the things that have been a hallmark of our strategy –
maintaining operating excellence, executing our projects well, discipline around capital investments
and our commitment to stockholder returns.
As global energy supply increases to meet the demand created by a growing world population, we
remain committed to advancing transportation fuels solutions through innovation, ingenuity and
unmatched execution.
My deepest gratitude to our 9,900-plus employees for their commitment, our Board for its
unwavering support, our stockholders for their investment, and our business partners and other
stakeholders for their trust.
R. Lane Riggs
Chief Executive Of昀椀cer & President
Environmental, Social and Governance Report •
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