ESG Report - Report - Page 6
ESG
At Valero, we are committed to consistent and proactive dialogue
with our stockholders, employees, neighboring communities, business
partners, governments and other stakeholders.
Environmental
GHG Emissions Strategy:
• Ensuring a best-in-class work environment.
• Achieved our short-term 2025 GHG emissions target
by reducing/displacing more than 63% of global refinery
Scope 1 and 2 emissions in 2022, three years early.
• Best year ever for combined employee and
contractor safety performance in 2022.
• On track to achieve 100% global refinery Scope 1 and 2
GHG emissions reduction/displacement target by 2035.
• New 2050 ambition to reduce and displace
companywide GHG emissions for Scopes 1, 2, 3 and 4
by more than 45 million metric tons CO2e.
Low-Carbon Investments:
• More than $5.1 billion invested to date in our low-carbon
fuels business.
• World's largest producer of low-carbon liquid
transportation fuels.
• Providing competitive pay and benefits that
reward innovation, ingenuity and excellence.
• Maintaining 99%-100% pay equity ratios for
gender and minority status.
• Attracting and retaining the best talent.
• Enhancing personal and professional
growth and development opportunities
to enable all employees to reach their full
potential.
• New large-scale SAF project at our renewable diesel
plant in Texas, expected in 2025.
• Under Board oversight, published the
Environmental Justice Audit Report and
the Racial Equity Assessment, both from
independent third-party experts.
• Successfully expanded total renewable diesel production
capacity to 1.2 billion gallons in 2022.
• Generated more than $68 million for
charities.
• Expect to be the anchor shipper on Navigator's carbon
sequestration pipeline project.
• Executive compensation design
modifications included:
• Producing, evaluating and/or advancing new lowcarbon product offerings such as low-carbon hydrogen,
renewable propane, renewable naphtha, renewable
arctic diesel and fiber cellulosic ethanol.
ESG Disclosures:
• In the 2022 TCFD Report, which included an independent
scenario analysis using IEA's Net Zero by 2050 Scenario,
HSB Solomon Associates LLC (Solomon) concluded that
Valero's overall refining portfolio would be resilient and its
strategy is aligned with the goals of the Paris Agreement.
• Scope 3 intensity in kg CO2e per barrel of company
refining throughput and production/sales of low-carbon
fuels shows the GHG emissions from the use of our
collective products are industry-leading lows.
• Responded to CDP's Climate Change Questionnaire.
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Social
• Target relative total shareholder return
(TSR) performance for performance
shares to be above the median of the
peer group.
• Apply a cap on overall performance
share payouts at 100% of target when
Valero’s TSR is negative.
• Enhance Stock Ownership and Retention
Guidelines by increasing the required
value of Valero common stock as a
multiple of salary by 50%.
Low-carbon projects are held to a
minimum after-tax internal rate of return
(IRR) threshold, just like other projects.
