2024 ESG Report FINAL - Report - Page 77
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, Percentage of
Renewable Volume Obligation (RVO) met through: (1) production
of renewable fuels and (2) purchase of “separated” renewable
identi昀椀cation numbers (RIN), code EM-RM-410a.1.
• Product Speci昀椀cation & Clean Fuel Blends, total addressable
market and share of market for advanced biofuels and associated
infrastructure, code EM-RM-410a.2.
• Pricing Integrity & Transparency, code EM-RM-520a.1.
• Critical Incident Risk Management - Challenges to Safety Systems
indicator rate (Tier 3), code EM-RM-540a.2.
• Critical Incident Risk Management - 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 2023 Annual Report on
Form 10-K, pages 6-10), 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 Methodology section of this report.
• In 2023, the direct GHG emissions (Scope 1) from the logistics assets
that support the re昀椀ning segment are de minimis and account for
less than 0.3% of the re昀椀ning reportable segment.
• In 2023, the direct GHG emissions (Scope 1) related to our ethanol
and renewable diesel segments of 2.3 million metric tons CO 2e
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 methodology we use to calculate Base year re昀椀ning Scopes
1 and 2 GHG emissions are disclosed in the GHG Emissions
Methodologies (page 21) of this ESG Report
• Actual Scopes 1 and 2 GHG emissions:
• The methodology we use to calculate and disclose re昀椀ning
Scopes 1 and 2 GHG emissions are disclosed in the GHG Emissions
Methodologies (page 21) of this ESG Report. We include the
market-based 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:
• Copies of independent limited assurance veri昀椀cations can be found
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. Limited assurance veri昀椀cations
include (1) company-wide 2023 GHG emissions (Scopes 1 and 2),
including re昀椀ning, renewable diesel, and ethanol; (2) 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; (3) company-wide 2023 GHG emissions intensity
of the use of our products per barrel and per unit of energy; and (4)
the validation of our 2035 GHG emissions 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 fresh water withdrawn by re昀椀ning operations
(fresh water with less than 1000 parts per million of dissolved solids); (2)
water recycled divided by the volume of fresh water withdrawn. Water
reused multiple times is counted as recycled each time it is recycled
and reused; (3) fresh water withdrawn in locations with high (40-80%)
or extremely high (>80%) baseline water stress as a percentage of the
total re昀椀nery fresh water withdrawn.
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 lowest numerical
disclosure threshold in effect at the time). Please see Valero’s Quarterly
Reports on Form 10-Q for the 昀椀scal year 2023 and 2023 Annual Report
on Form 10-K.
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 2023 Annual Report on
Form 10-K, page 50 and page 7, respectively.
• 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.
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.
• 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 (page 21) of this ESG Report; and (3)
the expected reductions of carbon emissions using CCS projects
under development
(b) SASB standards are not intended to, and cannot, replace any legal
or regulatory requirements that may be applicable to the company’s
operations.
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