Stewardship & Responsibility Report
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JULY 2021
Stewardship &
Responsibility Report
www.valero.com
Contents Guiding Principles
3 G u id in g P r i n c i p le s OUR VISION
The world requires reliable, affordable and sustainable energy, and
4 A L e t t e r f ro m o u r CEO we see this as an opportunity.
6 W h o We A re We are committed to advancing the future of energy through
innovation, ingenuity and unmatched execution.
8 M a p o f O p e r a tio n s
SAFETY
10 2 0 2 0 E S G S u mmary Safety is our foundation for success.
12 R e n e w a b l e D i ese l v s. EV s
ENVIRONMENT
14 G H G E m i s s i o n s Targ e ts We are committed stewards of the environment.
16 E n v iro n m e n t
COMMUNITY
38 Safety We will be a good neighbor by sharing our success with the
communities where we live and work through volunteerism,
52 Community charitable giving and the economic support of being a good
employer.
72 People
PEOPLE
94 Governance
We consider our employees a competitive advantage
106 S A S B R e p o r t an d F o o tn o te s and our greatest asset. We foster a culture that supports
diversity and inclusion, and provide a safe, healthy and
rewarding work environment with opportunities for growth.
108 EEO-1 Report
109 N o n - G A A P D i sc lo su re s an d F o o tn o te s GOVERNANCE
We view our stakeholders as partners to whom we seek to
deliver operational excellence, disciplined management
High efficiency cooling towers at of capital and long-term value on a foundation of strong
Valero’s Corpus Christi West Refinery. governance and ethical standards.
2 VALERO STEWARDSHIP AND RESPONSIBILITY REPORT • 3
A Letter from “We are on trac k
our CEO to achi ev e our p lan to
reduce/offset 63%
of gl obal refining
In 2020, we achieved several Valero is already a leader in
operational records, including the production of renewable greenhouse g as (G HG )
best year ever for safety and fuels, with more than $3 billion
environmental performance. In invested. We expect to invest em i s s i ons b y 2025
addition, we generated more almost $2 billion over the next
than $58 million for charities three years, expanding our through existing
through donations, fundraising board-approved low-carbon
and volunteerism. As many projects. In addition, we are board- ap p roved p rojec ts.
people suffered hardships, evaluating and advancing
we focused our charitable investments in sustainable A nd we are not stop p ing
contributions on providing aviation fuel, hydrogen, carbon
food, shelter, educational sequestration and more. there. I am p leased
resources, fuel and other life
We are on track to achieve
necessities.
our plan to reduce/offset 63%
to announce that w e
I am very proud of Team of global refining greenhouse
Valero. Throughout a year gas (GHG) emissions by 2025
pl an to inc rease that
like no other, our employees through existing board-approved
showed their dedication to our projects. And we are not
percentag e to 100%
company, and commitment to stopping there. I am pleased
operating in an environmentally to announce that we plan to by 2 0 3 5 .”
responsible and safe manner. increase that percentage to
I am proud of our efforts in 100% by 2035. The management
diversity and inclusion, as team and I recognize low-carbon
those are strengths of our fuels will be part of the energy
Valero team. As part of our mix. Demand for renewable fuels
pandemic response, we also will be driven by low-carbon Joe Gorder
expanded employee physical fuel policies and stricter fuel-
CHAIRMAN AND
and mental health benefits, efficiency standards. We plan to
CHIEF EXECUTIVE OFFICER
enhanced safety protocols leverage our liquid-fuels platform
and maintained high levels and operational expertise to
of communication with our diversify into high-growth, high-
workforce. return, lower-carbon projects
going forward.
Looking to the future, we
remain steadfast in our Thank you for your continued
energy transition strategy. support and trust.
4 VALERO STEWARDSHIP AND RESPONSIBILITY REPORT • 5
Who We Are
Val ero E n e rg y
Cor p or a t i o n ( N Y S E :
V LO), t h ro u g h
its subsidiaries
(col l ect i v e l y, “ Va l e ro ” ) ,
i s an i n t e r n a t i o n a l
man u f a c t u re r
and marketer of
transportation fuels and
p e t roch e m i c a l p ro d u c t s. Refining Renew abl e Di es el Ethanol
WORLD’S LARGEST WORLD’S 2ND LARGEST WORLD’S 2ND LARGEST
INDEPENDENT REFINER RENEWABLE DIESEL PRODUCER CORN ETHANOL PRODUCER
15 REFINERIES 13 ETHANOL PLANTS
COMPANY
3.2 MILLION BARRELS PER CURRENT EXPANDING TO AND
PRODUCTION 690 MILLION 1.2 BILLION 1.7 BILLION GALLONS
DAY OF HIGH-COMPLEXITY
CAPACITY OF GALLONS GALLONS PER YEAR OF PRODUCTION CAPACITY
THROUGHPUT CAPACITY
290 MILLION PER YEAR PER YEAR
GALLONS IN 2021 IN 2023
MANUFACTURER AND MARKETER
HIGH-OCTANE RENEWABLE FUEL
HEADQUARTERED IN OF TRANSPORTATION FUELS UP TO 80% REDUCTION 100% COMPATIBLE OFFERS 30% REDUCTION
SAN ANTONIO, TEXAS AND PRODUCTS THAT ARE IN LIFE CYCLE WITH EXISTING ENGINES IN LIFE CYCLE GHG EMISSIONS
ESSENTIAL TO MODERN LIFE GHG EMISSIONS AND INFRASTRUCTURE
ADVANTAGED REFINING AND LOGISTICS PRODUCED FROM WASTES SUCH AS
ASSETS WELL-POSITIONED FOR EXISTING DEVELOPING
RECYCLED ANIMAL FATS, USED COOKING OIL
FEEDSTOCK AND PRODUCT OPTIMIZATION LOGISTICS ASSETS CARBON CAPTURE AND
AND INEDIBLE CORN OIL
~10,000 WELL-POSITIONED TO STORAGE PROJECTS
SAFETY IS OUR SUPPORT EXPORT TO FURTHER REDUCE
GLOBAL EMPLOYEES LOWEST-COST LOW-CARBON FUEL
FOUNDATION GROWTH CARBON INTENSITY
PRODUCER SOLD IN NORTH AMERICA AND EUROPE
FOR SUCCESS
6 VALERO STEWARDSHIP AND RESPONSIBILITY REPORT • 7
Map of Operations
UNITED
REFINING KINGDOM
Assets: 15 petroleum refineries in the U.S., IRELAND
Canada and the U.K.
Gasoline, diesel, jet fuel and other specialty PEMBROKE LONDON
Products: products, including asphalt and petrochemicals,
that fuel modern life
Throughput 3.2 million barrels per day of crude oil
Capacity: and other feedstocks LOGISTICS ASSETS
~3,000 miles of active pipelines
~130 million barrels of active shell
RENEWABLE DIESEL capacity for crude oil and products
200+ truck rack bays
Diamond Green Diesel (joint venture),
Assets:
Norco, Louisiana
~5,200 railcars
50+ docks
Products: Renewable diesel fuel 2 Panamax-class vessels
Includes assets that have other joint venture or
minority interests. Does not include ethanol assets,
Capacity: 290 million gallons per year except for railcars.
ALTERNATIVE ENERGY GENERATION
ETHANOL
Adjacent to the McKee refinery
in the Texas Panhandle, 33 wind
Assets: 13 plants in the Midwest U.S. turbines with 50 megawatts of
electricity capacity
Ethanol, distillers grains and fuel-grade
Products: corn oil
4 cogeneration plants in the U.S.
and the U.K.
Capacity: 1.7 billion gallons per year of ethanol;
4.5 million tons of distillers grains PERU LIMA Expanders at 6 of our refineries
8 VALERO STEWARDSHIP AND RESPONSIBILITY REPORT • 9
ESG
ENVIRONMENTAL
• World’s 2nd largest renewable diesel producer
On track to achieve 63% global refining
We b el i e v e t h a t p ro a c t ive GHG emissions reduction/offset target
• Renewable diesel and ethanol reduce life cycle GHG emissions up to 80% and 30%, respectively
a n d con s i s t e n t d i a l o g u e by 2025 • World’s 2nd largest corn ethanol producer
wi t h s t a k e h o l d e r s h e l p s
2020 best year ever for environmental • Growth projects in low-carbon fuels as well as carbon capture and storage
u s a d d re s s e n v i ro n m e n ta l , performance
s oci a l a n d g o v e r n a n c e
p r i or i t i e s , w h i c h e n h a n ce
o u r b us i n e s s .
SOCIAL
2020 best year ever for safety performance • ~10,000 global employees1 • 29% of our global professional employees are women1
Surpassed $58 million in community donations • 35% of our U.S. workforce are minorities1 • Named to Forbes 2020 World’s Best Employers
and fundraising, with more than $12 million for
COVID-19-related support
Our Sustainability Accounting Standards Board As of Jan. 31, 2021.
1
(SASB) report, which aligns Valero’s performance
data with the recommendations of SASB’s
framework in the Oil and Gas – Refining and
Marketing industry standard, can be found on
pages 106 and 107.
In 2018, we published our Review of Climate- GOVERNANCE • Board and committee oversight of risks and compliance, including climate-change risks, GHG reductions and
renewable fuels strategy
Related Risks and Opportunities assessing
the resilience of our business strategies under a
Diverse, independent board of directors:
• Compensation aligned with performance: all-employee bonus program includes ESG efforts and improvements;
potential transition to a lower-carbon economy
5 of 11 represent diversity of race or gender and executive performance shares include an Energy Transition performance measure (as a modifier to relative TSR)
consistent with a 2°C scenario. We intend to
3 of 11 are women • 10 are independent linking compensation to the company’s progress toward its publicly announced 2025 GHG emissions reduction/offset
present an updated report following the Task
3 fully independent committees target and percentage of growth capital deployed for low-carbon initiatives
Force on Climate-related Financial Disclosures
(TCFD) recommendations later in 2021. We
are participating in the CDP Climate Change
Questionnaire 2021.
See page 107 for notes regarding this page. See page 107 for notes regarding this page.
10 VALERO STEWARDSHIP AND RESPONSIBILITY REPORT • 11
Electric Renewable Diesel
Vehicles (EVs)
A n affo rdable so lu tio n to im m e diate ly
re du ce tran spo rtatio n GHG e m issio n s. U.S. LIGHT-DUTY VEHICLE
LIFE CYCLE EMISSIONS
A b e t t e r u n d e r s t a n d i n g of
400
e l ect r i fi c a t i o n . BENEFITS OF RENEWABLE DIESEL 40% less
COMPARED TO EVs 300 emissions
Even lower
with
g CO2 /mile
than an EV
• EVs will be part of the energy mix to achieve low-carbon waste-based
200 feedstocks
goals but they are not the single technology solution. • Renewable diesel is a drop-in fuel, which means that it is 336
100% compatible with existing infrastructure and diesel 100 203
• Before an EV leaves the showroom, it has already emitted 150
engines, from light- to heavy-duty long-haul vehicles. 0
twice the CO2 emissions of a car fueled by gasoline.*
This helps make renewable diesel a viable solution to Battery Electric Engine with Engine with
Vehicle Renewable Renewable
• The mining/extraction and processing of the rare earth immediately reduce transportation GHG emissions without Diesel Diesel
(soybean-based) (waste-oil based)
minerals and metals needed to produce an EV battery requiring a costly, time-intensive and CO2-emitting
result in significant GHG emissions, and often occur infrastructure build-out as with EVs. U.S. HEAVY-DUTY LONG-HAUL
in countries with less-stringent environmental and VEHICLE LIFE CYCLE EMISSIONS
reclamation regulations than North America or Europe.
ELECTRIC • Our renewable diesel is typically made of waste materials
VEHICLES ARE and manufactured in jurisdictions with strict environmental, 1,200
49% less emissions than an EV
after 1 million miles traveled
• Once in operation, an EV is still not “zero emissions” as the
NOT ZERO labor and governance regulations. 1,000
electricity that powers an EV often is generated by fossil
EMISSIONS • Unlike with EVs, owners of vehicles running on renewable 800
Tons CO2
fuels. 600
Southwest Research Institute Ted Talk, diesel do not incur a high up-front cost to replace their
• The infrastructure build-out necessary to support an Presented by Graham Conway
current vehicles, nor the expenses related to charging and
400
increase in EVs will be costly, time-intensive and fossil-fuel 200
other new infrastructure needed to support an EV.
0
dependent, thus emitting a large amount of CO2 itself.
Embedded 500,000 1,000,000
• As detailed on the right, because of the feedstocks used to Emissions Miles Traveled Miles Traveled
• According to the IEA’s The Role of Critical Minerals in produce renewable diesel, a vehicle running on renewable (Zero Miles Traveled)
Clean Energy Transition, the world does not have the diesel can significantly cut life cycle GHG emissions Battery Electric Vehicle Engine with Renewable Diesel
mineral resource capacity to meet the demand increase of compared with an EV**.
**Argonne National Laboratory (DOE) and Southwest Research
renewable technologies, such as EV batteries. Institute. See page 109 for notes regarding this chart.
SIGNIFICANT ISSUES AND EMISSIONS FROM EV LIFE CYCLE A single light-duty vehicle running on renewable A single heavy-duty long-haul vehicle running on
diesel emits 29 tons less CO2 than an electric renewable diesel emits 561 tons less CO2 than an
vehicle**, an amount equal to the benefit of planting electric vehicle**, an amount equal to the benefit of
435 trees*** planting 8,482 trees***
MINING/ COBALT & RARE MANUFACTURING POWER
EXTRACTION EARTH PROCESSING EVs GENERATION
12 *Southwest Research Institute Ted Talk, Presented by Graham Conway. ***Estimated based on the U.S. Environmental Protection Agency (EPA) GHG VALERO STEWARDSHIP AND RESPONSIBILITY REPORT • 13
Equivalencies calculator for urban tree seedlings grown for ten years.
GHG Emissions Targets
202 5 TA RGET: NEW 2035 TARGE T:
To re d u ce a n d o ff s e t 63% of our g l ob a l refi ni ng Sc op e 1 a nd 2 We plan to fu rth e r re du ce an d o ffse t 100% o f o ur g lo b al refining
G H G em i s s i o n s b y 2025 through boa rd -a pp roved p roj ec ts. S co pe 1 an d 2 GHG e m issio n s by 2035 th ro u g h b o ard -ap p ro ved
pro je cts an d carbo n captu re an d sto rage pro je ct s und er d evelo p ment .
32. 3
2. 4 4. 2
Mi l l i o n Me t r i c
To n s C O 2 e
11. 1
On t r a ck t o 100%
ac hi e ve 6 3 % Left to Reducti on
ref in i ng G H G 59% Reduction Reduce and Offset
and Offsets 10. 9
emis s i o n s
Achieved in
redu ct i on/ o ff s e t 2020
t arg e t b y 2 0 25. 3.7
VLO A bso l u te 2 0 3 5 GH G 2 0 3 5 GH G 2 0 3 5 GH G 2035 GHG 2035 V LO
Re f i n i n g Emi ssi o n s Emi ssi o n s Emi ssi o n s Emi ssi o n s E mis s ions R efining
GH G Re du cti o n Off se t by Off se t Off se t by Offs et b y GHG
Emi ssi o n s th ro u gh VLO Eth an o l by VLO Gl o bal Carb on E mis s ions
in 2011 Eff i ci e n ci e s Pro du cti o n Re n e wabl e B l e n di n g Cap ture and after
63% (S co pe (S co pe Di e se l o f an d Storag e R ed uctions
1 & 2) 1 & 2) Pro du cti o n C re di ts f ro m & Offs ets
Ta rge t Re n e wabl e (Scop e
In d e p e n d e n t ly
Fuels 1 & 2)
v e r ifie d
In addition to absolute refining GHG emissions reduction targets. This has helped, and should continue
reductions, our production of renewable diesel and to help, drive the demand for both renewable diesel and
ethanol offers meaningful reductions in life cycle ethanol. Valero believes that the ability to supply these
GHG emissions, compared with traditional diesel and renewable fuels could play an important role in helping
gasoline. Blending and credits with respect to renewable to achieve such GHG emissions reduction targets. TARGETING TO REDUCE AND OFFSET 100% OF GLOBAL
fuels also provide a displacement of GHG emissions.
We have invested more than $3 billion* to date in our REFINING SCOPE 1 AND 2 GHG EMISSIONS BY 2035
Many state, provincial and national governments
renewable fuels, and we have allocated almost
across the world have implemented, or are considering
$2 billion over the next three years expanding our
implementing, low-carbon fuel policies and stricter
board-approved renewable projects.
fuel efficiency standards to help reach GHG emissions
*Our investment to date in our renewable fuels businesses consists of $1.4 billion in capital investments to build our renewable diesel business
and $1.7 billion to build our ethanol business. Capital investments in renewable diesel represent 100 percent of the capital investments made by
DGD (joint venture in which Valero is a 50/50 joint venture partner).
14 See pages 106, 107 and 109 for notes regarding this page. See page 106 and 107 for notes regarding this page. VALERO STEWARDSHIP AND RESPONSIBILITY REPORT • 15
Valero employees celebrating Earth Day at San Antonio’s
Phil Hardberger Park
E N V IR ONME NT
We are co mmit t ed
ste wards o f t he
e n v iro n m e n t .
Our team works to protect the natural environment by
operating in a responsible manner, including utilizing
recycling and reusing practices, minimizing waste and
investing in our assets. In fact, multi-billion-dollar capital
investments to maintain our responsible operations
along with continuous improvement in personnel safety,
process safety and reliability have driven down our
environmental events to record lows.
GOVERNANCE AND
OVERSIGHT BY THE BOARD
The board of directors has oversight responsibility
of climate-related risks and opportunities. The
Nominating/Governance and Public Policy
Committee assists the board in the oversight of
risks relating to health, safety and environmental
performance, as well as climate-related risks and
opportunities. The committee also assists the board
in oversight of ESG disclosures. Managed by a senior
executive who reports directly to our CEO and with
direct reporting opportunities to the committee, our
environmental team is responsible for environmental
strategy, risk assessment and implementation.
16 VALERO STEWARDSHIP AND RESPONSIBILITY REPORT • 17
ENVIRONM ENT S A F ET Y C OM M U NIT Y PEO P LE GOV E R NANCE
2020 HIGHLIGHTS LOW-CARBON FUELS
AND PROJECTS
Ou r in n o v at io n has mad e us
a le ade r in o ur ind us t r y fo r
an e n e rgy t r ans it io n.
ON TRACK TO ACHIEVE We have invested more than $3 billion to
63%
date in our renewable fuels businesses. And
we have allocated almost $2 billion over the
next three years to complete the expansion of
RENEWABLE DIESEL HAS UP TO ETHANOL HAS AT LEAST
our renewable diesel plant located next to our
GLOBAL REFINING SCOPE 1 AND 2
GHG EMISSIONS REDUCTION/OFFSET
TARGET BY 2025.
80% 30% St. Charles refinery in Louisiana, and to build
another renewable diesel plant adjacent to our
LOWER LIFE CYCLE GHG EMISSIONS, LOWER LIFE CYCLE GHG EMISSIONS, refinery in Port Arthur, Texas.
COMPARED WITH TRADITIONAL DIESEL COMPARED WITH PETROLEUM GASOLINE
Last year, more than 40% of growth capital
expenditures were invested in low-carbon
RENEWABLE DIESEL ETHANOL
100%
projects. In 2021, we are allocating more than
• Growing demand and capacity: current • World’s second largest producer: 1.7 billion 50% of growth capital expenditures to low-
production capacity of 290 million gallons, gallons per year carbon projects.
GLOBAL REFINING SCOPE 1 AND 2 expanding to 690 million gallons per year in Many state, provincial and national
• Low-carbon fuel: high-octane renewable fuel
GHG EMISSIONS REDUCTION/OFFSET 2021 and 1.2 billion gallons per year by 2023 governments across the world have
that lowers life cycle GHG emissions 30%,
TARGET BY 2035 • Circular economy: produced from used compared with gasoline implemented, or are considering implementing,
cooking oil, recycled animal fats and inedible low-carbon fuel policies and stricter fuel-
• Innovation to further reduce carbon intensity:
corn oil efficiency standards to help reach GHG
large-scale carbon capture and storage pipeline
emissions reduction targets. These policies
• Low-carbon fuel: life cycle GHG emissions project underway, expected to be operational in
drive the demand for both renewable diesel
up to 80% lower than traditional diesel 2024 with the capability to capture more than
and ethanol.
3 million metric tons of CO2 emissions per year
• Drop-in fuel: 100% compatible with existing
The growth of our renewable fuels business not
infrastructure and engines, from light- to
2020
only contributes to substantially lower carbon
heavy-duty long-haul vehicles
emissions, but also provides a good financial
return to our stockholders.
BEST YEAR FOR SAFETY PERFORMANCE
AND THE LOWEST NUMBER OF
ENVIRONMENTAL SCORECARD EVENTS*
*Performance measures include environmental scorecard incidents,
including flaring, spills and wastewater incidents.
See pages 106 and 107 for notes regarding this page. By planting trees in wetlands and restoring swamps in front of levees, See page 109 for notes regarding this page.
employees at the Valero St. Charles Refinery help protect the area
from hurricanes.
18 VALERO STEWARDSHIP AND RESPONSIBILITY REPORT • 19ENVIRONM ENT S A F ET Y C OM M U NIT Y PEO P LE GOV E R NANCE
RENEWABLE DIESEL ETHANOL
Our renewable diesel uses a combination of used A clean-burning, high-octane renewable fuel, ethanol
cooking oil, recycled animal fats and inedible corn oil has 30% lower life cycle GHG emissions, compared with
to produce low-carbon-intensity renewable diesel that gasoline. Our total ethanol production capacity is
reduces life cycle GHG emissions up to 80%, compared 1.7 billion gallons per year.
with traditional diesel.
In order to continue reducing the carbon intensity of
In a joint venture that started operations in 2013 at ethanol, we have implemented additional processes LARGE-SCALE CARBON CAPTURE AND STORAGE TO FURTHER
a plant adjacent to our St. Charles refinery, we have using enzymes to further break down the corn kernel to REDUCE THE CARBON INTENSITY OF ETHANOL
capacity to produce 290 million gallons per year with a produce cellulosic ethanol. This type of ethanol offers
planned expansion to 690 million gallons by late 2021. lower life cycle GHG emissions compared with corn T h is pro je ct 1
Another renewable diesel plant was approved by our ethanol. in v o lv e s captu rin g Separation of CO2 at
board to start operations in the second half of 2023, h igh -co n ce n tratio n our ethanol plants
adjacent to our refinery in Port Arthur, Texas. This will CO 2 stre am s
result in a combined annual capacity of about 1.2 billion pro du ce d in th e
gallons of renewable diesel. fe r m e n tatio n
pro ce ss at o u r
Once separated, the CO2 is
e th an o l plan ts.
dehydrated and compressed,
then transported via pipelines
The removal of CO2 from our
ethanol plants has the potential
LIFE CYCLE GHG EMISSIONS OF RENEWABLE FUELS to further reduce the carbon
Life cycle GHG emissions of low-carbon fuels are expressed in carbon intensity and represent a cradle-to-grave intensity of this low-carbon fuel by
more than 40% and significantly CO2 is injected into an
analysis, including feedstock production and transportation, fuel production and distribution, and use of finished
underground formation
Developing Economic Paths to Further Reduce the Carbon
fuel. When compared with traditional fuels, life cycle GHG emissions of low-carbon fuels include all the traditional contribute to our GHG emissions
for safe, secure and
scope emissions. reduction/offset target.
permanent storage
FEEDSTOCK PRODUCTION
Intensity of Our Products
FUEL PRODUCTION USE OF THE
1
Working with BlackRock Global Energy & Power Infrastructure Fund III
and Navigator Energy Services expected to be completed.
& TRANSPORTATION AND DISTRIBUTION FINISHED FUEL
ts Che ss Energy U Valero is expected to be the anchor
pu m oce
• Partnering with BlackRock and Navigator for a large-scale
se
In ic Pr A BL E F PORTAT
y O RESTRY SE a EW UE NS IO shipper with eight of its ethanol
F C N A
carbon capture and storage project
AG r g
lI
& E R
np
e
plants connected to the 1,200-mile
N
En
R
T
L
TO
uts
− 1,200 mile pipeline is expected to span across five Midwest states
R
carbon capture pipeline across five
Midwest states.
− Valero is expected to be the anchor shipper with eight of its ethanol plants
connected to the carbon capture pipeline
A − Navigator is expected to lead the construction and operations of the system,
L
E
N G
D U
SE CHA
N with operationsFAanticipated
CILI T Y
to begin late 2024 F UE L
Ag Ma
C o pro d ucts uts
• Project driven by strong economic returns
erial Inpt
Map is indicative only. Exact pipeline route
− 45Q Tax Credit of $50 per metric ton of CO2 captured and stored(1)
S
OT
subject to change following the conclusion
CT
ER of open season.
DU
H
− Approximately 50 cents per gallon
C Ouplift
P R O on the lower carbon intensity
ethanol in LCFS markets
20 Map is indicative only. Exact pipeline route subject to change following the conclusionVALERO
of Open Season.
STEWARDSHIP AND RESPONSIBILITY REPORT • 21
(1) Typical CO production from ethanol plants is 0.003 metric tons per gallon of ethanol produced.
2ENVIRONM ENT S A F ET Y C OM M U NIT Y PEO P LE GOV E R NANCE
ENVIRONMENTAL
1 2 3
COMMITMENT FUELS ENVIRONMENTAL EXCELLENCE EERA PROCESS:
MANAGEMENT TO EXCELLENCE COMPLIANCE AND RISK ASSESSMENT (EERA)
MANAGEMENT Our Fuels Compliance program Created in 2020, EERA elevated the environmental
ON-SITE:
Rob u s t Op er a t i o n a l SYSTEM (CTEMS) Self-assessment is conducted by refinery
provides operational safeguards, audit and compliance functions to an environmental
and Envi ro n m e n t a l leadership. Each refinery compares itself
CTEMS provides the policies software, auditing, training and excellence vision. Its main goal is to assess the design
M an ag e men t and procedures used to achieve protocols for uniformity across our and effectiveness of environmental management
to rating criteria.
Sy st ems f ol l o w i n g operations excellence and to manage labs to reinforce our compliance with systems under specific excellence objectives, and to
t hre e p ro g r a m s : our business in a safe, reliable and all fuels regulations across the globe. return an assessment per site to enable continuous
PAPER:
Third-party and in-house subject matter
environmentally responsible manner. Our fuels compliance efforts also improvement across the company. EERA defines more
experts conduct an extenisve deep-dive
A proprietary systematic approach include evaluating low-carbon-intensity than 100 expectations and involves a five-step process
review of refinery environmental data
unlike third-party management value generation opportunities by using a combination of external assessors and internal
S ELEMEN
and reports in a due-diligence-style
CCTTEEM
MS ELEMENTTSS
systems, CTEMS focuses on results finding carbon intensity optimization subject matter experts.
process.
and not exclusively on planning investments and strategies. Together
At the Corpus Christi West
and documentation. with the innovation team, fuels refinery, leak detection and
LEADERSHIP
CTEMS adheres to a compliance supports projects that repair (LDAR) equipment is TECHNOLOGY:
ACCOUNTABILITY PL
T used to detect emissions.
C
plan>do>check>act directly benefit carbon intensity, Technical field assessment is conducted
A
A
N
PROTECTING
CONTINUAL PEOPLE & model to achieve including: using industry standards and advanced
IMPROVEMENT ENVIRONMENT
excellence in nine technology to evaluate effectiveness in
• Energy conservation efforts in
critical elements, controlling emissions.
the feedstock supply chain
PEOPLE
& SKILLS
driving safe
ASSURANCE
& REVIEW DEVELOPMENT
and reliable • Sustainable corn crop practices INSPECTION:
IMPLEMENTATION operations, • Plant and terminal certifications Results from the technology review and
PROCESS OPERATIONS
and minimizing and audits due-diligence process are used by a
STAKEHOLDER RELIABILITY &
RELATIONSHIPS MECHANICAL
impacts on team of experts in a substantive on-site
INTEGRITY • Clean-fuel regulatory compliance
communities When combined with CTEMS, EERA is much more inspection and cultural assessment.
TECHNICAL and the • Cellulosic ethanol production relevant and effective for our complex refining business
BUSINESS EXCELLENCE
IMPLEMENTATION:
CH
COMPETITIVENESS & KNOWLEDGE environment. • Innovation projects, including than generalized management systems such as ISO
EC
MANAGEMENT
renewable naphtha, sustainable 14001. Final gap assessment report is produced
K
O
CHANGE D
MANAGEMENT
aviation fuel (SAF), renewable by experts and leadership team
In 2020, EERA was implemented completely at several
hydrogen and carbon capture with mitigation pathway and scoring
of our refineries. By focusing on results in the field,
opportunities improvement actions.
and not exclusively on regulatory compliance, EERA
promoted our excellence vision in 2020.
OUR APPROACH TO Risk Assessment: formal risk Compliance: assurance with legal Record Keeping: ensure documents Monitoring and Communication: Audits and Assessments: internal
assessments documented, requirements, communicating and identified, managed and maintained operations and activities measured and independent audits and
ENVIRONMENTAL
implemented and maintained monitoring changing regulations and monitored, assessing the verifications conducted to identify
MANAGEMENT Training: ensure all employees
at sites, including hazard implementation and effectiveness of the adequacy and effectiveness of
Objectives and Continuous necessarily skilled, trained and
Responsibility: refinery staff identification, risk evaluation, operational controls, and tracking environmental controls, regulatory
Improvement: progress on competent to perform duties in an
dedicated to environmental analysis and mitigation and evaluating environmental compliance and excellence vision
environmental management, environmentally responsible manner
excellence and risk mitigation performance
including strategic planning, goals
and objectives, is reviewed at least
22 annually VALERO STEWARDSHIP AND RESPONSIBILITY REPORT • 23ENVIRONM ENT S A F ET Y C OM M U NIT Y PEO P LE GOV E R NANCE
REDUCI NG, REUSING, RECYCLING AND REPURPOSING
Fo r Va l e ro , b e i n g t h e m ost effi c i ent a nd rel i a b l e opera tor Ou r o pe ratio n s are alway s lo o kin g fo r w ays t o co nt inue
i n a hi g h l y c o m p e t i t i v e i nd ustry mea ns bei ng a b etter re du cin g e m issio n s an d waste , re u sin g energ y and
e n v i ro n menta l p erfor mer. by pro du cts, re cy clin g m ate rials an d re pur p o s ing w as t es .
FLARE-GAS RECOVERY SYSTEMS RESULTED IN MORE THAN RECYCLING OF MATERIAL RECOVERED FROM TANK CLEANING
97% FLARING-FREE OPERATIONS IN 2020 Recovered material is inserted back into the refining process to create fuels and other products.
More than 79% of Valero’s large process flares are equipped with flare-gas recovery systems. These Alternatively, the recovered material is also used to fuel third-party facilities, avoiding landfill
systems reduce flaring and recover fuel gases, which are used to fire heaters and boilers, reducing waste.
natural gas consumption.
SULFUR REMOVAL WASTEWATER MANAGEMENT
Sulfur obtained from the refinery process unit is removed for a variety of beneficial Process water and stormwater are managed at our wastewater treatment plants. We use
uses, including crop fertilizer. specialized bacteria to naturally digest oil and treat wastewater streams to purify the water
before returning to the ecosystem.
MARINE VAPOR RECOVERY UNITS WATER RECYCLING
At certain refineries, captured vapors generated when loading ships With innovative approaches, we use each gallon of water more than 18.5
with gasoline and other light products are routed back into the times prior to evaporation or return to the environment.
refinery’s gasoline pool.
FUEL FROM OIL WASTE REUSING EXHAUST GASES TO REDUCE ENERGY
Recovered usable oil and oily solids are reprocessed into high-value
CONSUMPTION
fuel and byproducts through refining processes, including “coker Installed at six of our refineries, expanders are designed to convert
injection,” avoiding the generation and disposal of wastes. kinetic energy into electricity by reusing exhaust gases to spin
turbines.
ENERGY EFFICIENCY INITIATIVES
We are focused on improving process
monitoring and control systems to reduce
energy consumption.
24 VALERO STEWARDSHIP AND RESPONSIBILITY REPORT • 25ENVIRONM ENT S A F ET Y C OM M U NIT Y PEO P LE GOV E R NANCE
Valero volunteers from the
Houston and Texas City
refineries planted 140 trees CARBON CAPTURE HAZARDOUS WASTE MANAGEMENT PROGRAM
during a habitat restoration
event for the Galveston Bay
SINCE 2013 We focus on reducing the generation of wastes across all media, including air, water and
Foundation in Kemah, Texas.
MORE THAN 1 MILLION TONS solid streams. Recycling, reusing and repurposing activities are essential components of our
OF CO2 EACH YEAR program. The program also includes regular waste reviews, risk assessments, waste stream
prioritization and training.
Carbon capture opportunities include capturing
the carbon dioxide associated with hydrogen
production at refineries. 2020 RESULTS
In 2013, our refinery in Port Arthur, Texas, became
the first industrial site in the U.S. to host a large-
scale carbon capture project, and it remains the only
U.S. refinery doing so, with more than 1 million tons 2.5 million
captured each year. Two steam methane reformer GALLONS OF WASTE REPURPOSED
units, owned by a business partner that produces AS FUEL AT THIRD-PARTY
hydrogen from natural gas for the refinery, were FACILITIES, DISPLACING THE
retrofitted to capture the carbon dioxide generated EQUIVALENT OF MORE THAN 8,500
from hydrogen production. TONS OF COAL AND PREVENTING
35,800 TONS OF CARBON
94%
1 million
TONS PER YEAR CAPTURED
OF ALL REFINERY EXEMPTED
AND HAZARDOUS WASTES
WERE RECYCLED*
IS EQUIVALENT TO THE BENEFITS OF
Wastewater treatment plant at Corpus
PLANTING EACH YEAR Christi West refinery, where we use
specialized bacteria that naturally digest
48%
oil and other components in our waste
streams.
OF ALL HAZARDOUS WASTE WAS
RECYCLED, INCLUDING
15.6 MILLION POUNDS OF CATALYST*
16.5 million SPILL PREVENTION
TREE SEEDLINGS
GROWN FOR 10 YEARS* Valero is focused on reducing spills from its manufacturing and processing facilities, pipelines
and vessels, and thoroughly investigates spills to reduce recurrence.
We protect our people and the environment through operational excellence and technology,
always with the goal of zero spills.
26 *Source: U.S. Environmental Protection Agency (EPA) Greenhouse Gas Equivalencies Calculator *Refers to exempted hazardous waste as per regulatory classifications VALERO STEWARDSHIP AND RESPONSIBILITY REPORT • 27
and per footnote EM-RM-150a.1 on page 107.ENVIRONM ENT S A F ET Y C OM M U NIT Y PEO P LE GOV E R NANCE
Galveston Bay Tree Planting
B IODIVERSITY AND CONSERVATION
A t Va l ero, w e p ro m o t e b i o d i versi ty a nd p rotec t wi l dl i fe
hab i t at t h ro u g h a n u m b e r of p roa c ti ve mea sures.
We engage in diverse ecological projects with state and federal regulatory agencies, as well as with
neighbors and indigenous communities.
Our campaigns promoting wildlife conservation and biodiversity enhancement include working together
with local and regional organizations that provide a variety of environmental services ranging from the
protection of endangered species, restoration of wetlands and reforestation, to rehabilitation of former
industrial sites, and promoting environmental awareness through educational programs.
Con s i d er a t i o n o f B i o d i v e r s i ty The following natural and cultural resource In the construction phase, for site preparation Pipe lin e Pu b lic Aw arenes s
I mpact s considerations are part of the evaluation process: and other related soil-disturbing activities, we Pro gram
initiate stormwater management controls to
Valero’s growth capital projects often require thorough With more than 3,000 miles of active pipelines, Valero
reduce impacts to lakes, rivers, streams and
evaluation of potential biodiversity impacts as part of • Locations of surface waters and wetlands has programs in place to inform the public, emergency
other surface waters. These controls consist of a
their planning, approval and implementation phases, • Threatened and endangered species habitats responders and other key stakeholders about the
variety of best management practices integrated
particularly when greenfield sites are being considered, status of the pipelines, and offers resources to
• Previously recorded archaeological sites, into our Stormwater Pollution Prevention Plans,
or at locations where existing assets may have sensitive residents and businesses. We also provide training to
historic structures and areas of tribal interest which comply with federal, state and local
natural or cultural considerations. emergency response personnel in the community.
or significance stormwater pollution control requirements,
In the pre-construction or planning phase of including planning, temporary and permanent Because digging or other
• Existing developed areas versus
such capital projects, we perform environmental sedimentation and erosion control measures, excavation, construction or
undeveloped greenfield sites
due-diligence as part of location selection. Once stream- and wetland-crossing procedures, farming activity can potentially
environmental reviews and virtual data gathering are • Public lands, including parks, nature inspections and general good housekeeping damage a pipeline and have
performed, Valero’s environmental team works closely preserves and wildlife conservation areas practices. both safety and environmental
with the engineering and commercial departments to impacts, Valero encourages
• Federal Emergency Management Agency During major construction, we also
determine the best preliminary location for the project. the public to contact their state’s one-call center, from
floodplains provide applicable training on threatened
the “811: Call Before You Dig” resource on its website.
• Surface water intakes and endangered species awareness and
identification, stop-work protocols and reporting.
To protect ecosystems from unintended releases
of materials, we implement comprehensive
For significant projects, alternative locations are considered. In these cases, we perform environmental field
pollution prevention and incident response
studies on the most viable locations to verify and delineate natural resources within proposed project areas.
programs.
This data further drives project decisions on avoidance of sensitive features and habitats.
28 VALERO STEWARDSHIP AND RESPONSIBILITY REPORT • 29ENVIRONM ENT S A F ET Y C OM M U NIT Y PEO P LE GOV E R NANCE
Biod i ver s i t y a n d H a b i t a t C o nserva ti on Wildlife an d Plan t Pro te ctio n
Our Pembroke refinery in the United Kingdom creates and
Our staff biologist identifies endangered species
sustains habitat for wildlife and plants with a Biodiversity
and critical habitat in the vicinity of our facilities,
Action Plan on 500 acres it owns outside its fence line.
and documents ecological projects conducted
This includes work with the Bumblebee Conservation
by our plants and Valero volunteers.
Trust to create habitat for the rare shrill carder bee, at
Valero sponsored the Texas Butterfly Ranch
the site of a removed tank storage farm. Valero volunteers
Caterpillar Condos for Classrooms program to Shrill carder bee
have cleared and planted wildflower meadow seed, and
teach second grade students the life cycle and
also have created safe nesting areas in earthen banks for
migration patterns of monarch butterflies.
shelduck waterfowl, secure from predators.
Shelduck waterfowl
American burying beetle
For a pipeline replacement project between At our Benicia refinery near the San Francisco Bay, Valero
our Ardmore refinery and Wynnewood terminal placed straw “wattles,” or interwoven natural material, Salt marsh harvest mouse
in Oklahoma, Valero conducted surveys on the over pipelines to allow small mammals, including the
rare American burying beetle and provided threatened salt marsh harvest mouse, passage over the
critical data to the U.S. Army Corps of Engineers pipes. The wattles serve as bridges and provide critical
and the U.S. Fish and Wildlife Service on area access for the mouse to the dense ground cover and
populations of the beetle. adjoining grasslands it is dependent upon.
Peregrine falcon
We also work with indigenous tribes to preserve
Valero’s Jefferson, Wisconsin, ethanol plant is creating
sites with biodiverse, historical, cultural and
habitat for peregrine falcons, on the state’s endangered
spiritual significance. During the construction
list, to nest and reproduce. Parent falcons return each year
of the Diamond Pipeline in Oklahoma and
to the plant, where volunteers have built a nest box and
Arkansas, 23 indigenous communities were
placed it high up in an old grain elevator stairway, with
contacted to participate in the permitting
window access. In 2020, three chicks hatched and fledged
process. After a consultation process, more than
successfully. The plant regularly has invited employees
200 locations were identified to require tribal
and their families to watch as a researcher bands the small
and archaeological surveying along the 440-mile
Consultation process with indigenous chicks for tracking.
communities as part of the Diamond Pipeline.
route.
30 VALERO STEWARDSHIP AND RESPONSIBILITY REPORT • 31ENVIRONM ENT S A F ET Y C OM M U NIT Y PEO P LE GOV E R NANCE
Wet l a n d s R e s t o r a t i o n L an d Re m e diatio n , Man age m e n t
At the site of a closed refinery in Michigan, Valero conducted a wetland
restoration project to provide physical characteristics essential in
For more than 10 years, the St. For more than 10 years, the St. Charles refinery developing vegetation and wildlife along the Pine River. The wetland
Charles refinery has worked has worked closely with the Pontchartrain was redesigned to contain multiple habitats prior to seeding the area
closely with the Pontchartrain Conservancy. As part of wetlands and swamp with a diverse group of native plant species as well as adding multiple
Conservancy. As part of wetlands restoration, together we have planted wildlife habitat structures. Wildlife, including bald eagles, turtles,
and swamp restoration, together approximately 5,000 trees in front of levees multiple species of ducks and a variety of aquatic species, have used
we have planted 5,000 trees in to help protect the area from hurricanes. this restored wetland area. The project was successfully completed in
front of levees to help protect conjunction with state and local agencies, and continues to flourish as a
the area from hurricanes. vital habitat.
As part of Pembroke’s construction of a cogeneration unit, it converted
Valero Benicia Refinery a former residence into habitat for local populations of bats relocated
because of the new unit. The bat house has attracted a number of new
residents. The refinery also is looking to “re-wild” areas of land it owns,
a conservation effort aimed at restoring and protecting natural areas
through the planting of native broadleaf woodland. Re-wilding is a
process that promotes nature-based carbon storage. The refinery also
operates an Environmental Education Program and hosts students at its
nature boardwalk to explore aquatic plants and animal species.
134,000 AN AMOUNT
ROUGHLY
6.4 million The Galveston Bay Foundation, a nonprofit conservation
organization serving the area since 1987, partnered
CUBIC YARDS OF CLEAN 50-POUND BAGS
EQUAL TO with Valero’s Houston and Texas City refineries for tree
DREDGED MATERIAL OF SAND
planting and habitat restoration events.
Valero Houston and Texas City Refineries volunteers
The Benicia refinery captures clean sediment dredged equal to 6.4 million 50-pound bags of sand – for
from its dock area to raise the elevation of nearby restoration at the Montezuma Wetlands Restoration
subsided wetlands, which helps protect and recover Project. The effort not only protects habitat but also
The St. Charles refinery has partnered with the Coastal Conservation
wildlife and plant species. Over the past four years, helps ensure safe dock operations, clearing sediment
Association, a nonprofit that advises and educates the public on
Valero has contributed approximately 134,000 cubic to allow ample underwater clearance for large ships.
conservation and marine resources.
yards of clean dredged material – an amount roughly
In partnership with the nonprofit Texas Coastal Exchange, Valero
invested in the capture of 10,000 tons of carbon dioxide in marsh,
Our Aurora ethanol plant received the 2019 Brookings County
prairie and woodland habitat in the wetlands of the Texas Gulf
Conservation District Tree Stewardship Award for its stewardship of
Coast near our Port Arthur refinery. Rather than developing the land,
natural resources, including planting 5,500 trees in South Dakota.
landowners commit to preserving the ecosystems to capture carbon
Habitat along Texas Gulf Coast dioxide underground.
32 VALERO STEWARDSHIP AND RESPONSIBILITY REPORT • 33ENVIRONM ENT S A F ET Y C OM M U NIT Y PEO P LE GOV E R NANCE
Wetland restoration and tree planting event by
Valero’s St. Charles Refinery volunteers.
D a ta Veri fi c a ti on Cogeneration unit at the Wilmington
refinery, which reduces our reliance
Valero uses third parties to conduct environmental, on the local power grid.
emissions and fuel compliance verifications. State,
provincial and national governments across the world
with cap-and-trade and low-carbon fuel policies require
independent assurance of our GHG emissions and the
carbon intensity of our low-carbon fuels. In addition,
we engaged Lloyd’s Register Quality Assurance Inc.,
an affiliate of Lloyd’s Register North America Inc., to
evaluate and issue an assurance statement on the
ENERGY EFFICIENCY Cogeneration Plants: Fueled by natural
accuracy and reliability of our global refining Scope 1 gas, our cogeneration plants reduce our
and 2 GHG emissions. We intend to continue attaining Man y o f o u r re fin e rie s u se reliance on local power grids, which are
assurance statements on our global refining GHG po we r fro m re n e wable so u rce s often less environmentally friendly and
emissions each year. e ith e r fro m lo cal po we r grids more costly. Cogeneration represents a
Details on independent verifications and assurance
o r fro m o u r o wn pro je cts. very efficient way of producing electricity
statements can be found on our website at and thermal energy or steam, with the
www.valero.com > Investors > ESG > Reports Local power grids can draw from renewable sources, steam recycled back into the refining
and Presentations. ranging from hydropower to wind, solar, biogas and process for other uses.
geothermal. And we produce some of our own power,
Valero has cogeneration systems at
ENVIRONMENTAL METRICS from wind or from recycling gases (such as steam and
refineries in Wilmington, Benicia, Port
exhaust) within our refining processes. Roughly 22% of
GLOBAL REFINING1 2017 2018 2019 2020 Arthur and Pembroke.
our total energy consumption originates from renewable
sources. Expanders: At six of our refineries, we
GHG Emissions Scope 11 25.2 25.4 24.8 23.0
have installed “expanders” on processing
GHG Emissions Scope 21 5.2 5.0 4.7 4.5 Hydropower: More than 99% of the units that generate power from exhaust
electricity used at our Quebec City refinery gases. We have the world’s largest
NOx 2
9,300 9,000 8,700 7,900 expander at our Corpus Christi West
comes from renewable sources – mainly
hydropower, with small portions from wind, refinery. In all, our expanders are designed
SOx2 8,800 7,700 8,800 7,600
biomass and biogas. with the capacity to annually displace
more than 600,000 tons of carbon dioxide
PM102 2,400 2,300 2,200 2,200
Wind generation: Adjacent to our
that otherwise would be generated by
McKee refinery in the Texas Panhandle,
VOCs2 9,500 10,300 7,700 7,500 conventional power plants.
our windfarm was completed in 2009 at
Fresh Water withdrawn3 181.2 165.8 164.1 164.6 an investment of more than $80 million,
and includes 33 wind turbines with 50
Oil spilled to land (>1 bbl)4 22 25 14 21 megawatts of electricity capacity.
Oil spilled to water (>1 bbl)4 0 4 3 4
COMBINED, OUR COGENERATION SYSTEMS
1
Million metric tons CO2e. Scope 1 is defined as the direct GHG ENOUGH TO POWER
emissions from global refinery operations. Scope 2 (market-based) is the
AND EXPANDERS ARE DESIGNED TO OFFSET
THE HOMES OF A
~330 megawatts
indirect GHG emissions from purchased electricity and steam calculated
using EPA-derived steam emissions factors and energy supplier-specific CITY THE SIZE OF
emissions factors.
2
Metric Tons SAN FRANCISCO*
3
Million m3
OF ELECTRICITY ANNUALLY.
4
Count of oil spill events to land or water of more than one barrel.
34 * U.S. Census Bureau. Population estimates as of July 1, 2019. VALERO STEWARDSHIP AND RESPONSIBILITY REPORT • 35ENVIRONM ENT S A F ET Y C OM M U NIT Y PEO P LE GOV E R NANCE
WATER MANAGEMENT
Wate r m a n a g e m e n t i s a c r i t ic a l Water scarcity can be a risk not only to communities but
comp one n t o f o u r b u s i n e s s to the refining process. Water is needed for cooling and
and we cont i n u e t o w o r k also in the form of steam for heating. In addition, water
with s t a k e h o l d e r s t o i m p ro ve plays an important role in removing impurities from
our p e r f o r m a n c e , w h i l e a l s o feedstocks.
redu ci ng co n s u m p t i o n , b y :
Our water-risk-based approach is integrated into our
operational and long-term planning to mitigate and
reduce water risks.
We have taken several steps we believe are necessary to
• Taking a risk-based approach to water
management and integrating water strategy and At Va l e ro, w e w ork secure our operations in conditions of water scarcity.
water security into our long-term planning and • At our Wilmington refinery we have a signed
business processes w i th i n n ov a ti v e contract to take treated municipal wastewater to
supplement our cooling tower makeup water. Upon
• Engaging with local governments, industry
a p p roa c h e s a n d project completion, we will save up to 420 million
associations, suppliers and regulatory agencies
gallons of potable water per year. That is roughly the
to develop innovative solutions in water
a d v a n c e d te c h nol ogy annual amount consumed by 9,000 U.S. households.*
management and conservation
• Assessing and managing regional water risks to mi n i mi z e u s e • Our Three Rivers refinery sends treated wastewater
for use in irrigation.
through sustainability assessments
• Protecting existing water resources through sound
a n d e l i mi n a te • Our Corpus Christi refineries pay into a broad
industry fund that provides water-supply security and
water management policies
w a s te . supports research and plans for the construction of a
• Recycling and reusing water to minimize demands desalination facility to serve industrial users.
on fresh water sources and improve efficiency In 2020, we re cy cle d
m o re th an 18.5 tim e s • Our Welcome ethanol plant was one of the
Most of our water consumption takes place in our industry’s first operators to achieve “zero discharge”
th e am o u n t o f fre sh
refining operations. of wastewater by recovering and recycling process
wate r we with dre w
Based on the World Resources Institute’s (WRI) Water to su ppo rt o u r water and stormwater.
Risk Atlas tool, Aqueduct, we determined that only re fin e ry o pe ratio n s, • Process water and stormwater are treated as
two of our 15 refineries are located in regions with high prim arily th ro u gh th e necessary before discharging or reusing. Our
baseline water stress. re circu latio n o f wate r wastewater treatment plants are generally
Reduction and mitigation initiatives include the in h igh -e fficie n cy comparable to those operated by most cities.
evaluation of reused municipal wastewater for cooling co o lin g to we rs.
tower purposes and acquisition of secured water rights. High efficiency cooling towers at
Valero’s Corpus Christi West Refinery.
*Source: Water Footprint Calculator
36 VALERO STEWARDSHIP AND RESPONSIBILITY REPORT • 37Valero’s St. Charles refinery
laboratory employee
S AFE TY
S afe ty is o ur fo und at io n
fo r su cce ss.
OUR OPERATIONS
CONTINUED DURING
THE COVID-19 PANDEMIC
Leveraging our extensive and proven safety and
emergency preparedness protocols, we responded
responsibly and quickly to protect the safety and
well-being of our employees, their families and
communities during the COVID-19 pandemic. As part
of the world’s critical infrastructure, Valero refineries
continued producing transportation fuels and other
products essential to everyday life, while keeping
employees and contractors protected with safe-at-
work protocols, regular communications and response
plans.
Corporate and support employees at our headquarters
returned to the office after safe-at-work protocols
were put in place. These measures included increased
frequency and type of cleaning, work-station
modifications, mandatory face masks, safe-return
training and social distancing protocols.
38 VALERO STEWARDSHIP AND RESPONSIBILITY REPORT • 39ENVIRONM ENT S A F ET Y C OM M U NIT Y PEO P LE GOV E R NANCE
2020
Employees with protective equipment
2020 SAFETY HIGHLIGHTS
at Valero’s Corpus Christi refineries
THREE refineries with no employee recordable injuries
(Houston, Pembroke and Quebec)
w a s o u r b e s t y e a r ever
f o r s a f e t y p e r f o r ma nc e.
TWO refineries with neither employee nor contractor
recordable injuries (Houston and Quebec)
We believe that safety and In 2020, we spent $2 billion in
reliability are extremely important, capital expenditures to grow
NINE refineries with no contractor recordable injuries
not only to the cultural values we and sustain our operations,
(Ardmore, Corpus Christi East, Corpus Christi West,
aspire to as a company, but also for including investments in safety,
Houston, McKee, Meraux, Quebec, Texas City and
operational success. A decrease in preventive equipment maintenance,
Wilmington)
the number of employee safety environmental mitigation and
events and process safety events reliability. We also implemented new
TEN refineries approved as Voluntary Protection
reduces unplanned shutdowns programs, procedures and training
Program (VPP) Star Sites, the most of any refiner
and increases the operational aimed at preventing injuries and
(VPP Star Site is OSHA’s highest plant-safety
reliability of our plants. This, in turn, environmental incidents.
designation)
translates into fewer environmental
In 2020, Valero’s refining combined
incidents, a safer workplace, lower
employee and contractor injury TWO international refineries approved as
environmental impacts and better
rate was its best ever with a Total Valero VPP Star Sites (Quebec and Pembroke)
community relations.
Recordable Incidence Rate (TRIR) of
We strive to improve safety and 0.23 incidents per 200,000 working ONE refinery with no unplanned outages two years
63%
reliability by offering year-round hours, well below the industry in a row (Quebec)
safety training programs for our average. Our Tier 1 Process Safety
employees and contractors to Event Rate was 0.06. ZERO ethanol plants with Tier 1 process safety events
promote the Valero culture of safety REDUCTION IN
excellence. Safety compliance is REFINERY COMBINED EMPLOYEE
ONE ethanol plant with ZERO employee recordable
achieved with frequent audits and AND CONTRACTOR INJURY RATES
injuries in the past three years, ZERO contractor
quality assurance visits as well as SINCE 2011
recordable injuries in the past five-and-a-half years,
comprehensive risk assessments to
ZERO Tier 1 process safety events in more than
ensure safety standards are followed
11 years (Welcome ethanol plant)
and comply with and often exceed
local, state and federal regulations.
SIX facilities earning safety awards from American Fuel
& Petrochemical Manufacturers (AFPM) in 2020
(Ardmore, Corpus Christi*, Meraux, Three Rivers,
For us , s af e t y m e a n s o u r e m plo y e e s an d c o n trac to rs g o h o me Wilmington and Wilmington Asphalt)
ever y day t o t h e i r f a m ilie s a nd o u r c o mmu n itie s re st assu re d
kn ow i ng we a re d e d i c a t e d t o k eepi ng t hem sa fe. ONE Elite Silver Safety Award to the Wilmington
Asphalt Plant for performance in the top 5% of AFPM
members
See page 109 for notes regarding this page. *Corpus Christi, with two refineries, awarded as a single facility.
40 VALERO STEWARDSHIP AND RESPONSIBILITY REPORT • 41ENVIRONM ENT S A F ET Y C OM M U NIT Y PEO P LE GOV E R NANCE
PERSONNEL SAFETY VALERO REFINERIES VS. OTHER SECTORS
REFINERY EMPLOYEES AND CONTRACTORS (INJURIES RECORDED PER 200,000 WORKING HOURS)
1.10
VALERO REFI N ERY
Industry EM PLO YEES A N D 0.23
CO N TRACTO RS
0.40
Incidence Rate (TRIR)
Total Recordable
0.62
(Recordable
injuries per
Account ing/ Tax
200,000 0.3
Prepar at ion Ser vices
Valero
0.23
working
hours)
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Pet roleum
0.4
Ref ining
Refining Industry Employees SOURCES: U.S. Bureau of Labor
(U.S. Bureau of Labor Statistics) Elect r ic Pow er Statistics, Valero; Industry figures
1.1 are for 2019; Valero refinery figure,
G ener at ion
2020.
SAFETY METRICS
Cons t r uct ion 2.8
GLOBAL REFINING 2017 2018 2019 2020
Personnel Safety Employee1 0.28 0.40 0.25 0.34
Fores t r y and
2.8
Logging
Personnel Safety Contractor1 0.36 0.32 0.39 0.15
Fatality Rate Employee2 0.00 0.00 0.00 0.00
M anuf act ur ing 3.3
Fatality Rate Contractor2 0.02 0.00 0.00 0.00
Process Safety Events Rates - Tier 13 0.08 0.07 0.05 0.06
Hos pit als 5.5
Process Safety Events Rates - Tier 23 0.18 0.31 0.17 0.17
1
Recordable injuries per 200,000 working hours.
2
Per 200,000 working hours. Fr am ing
Valero Houston Refinery 3
Global refining Tier 1 process safety event (PSE) rates and Tier 2 PSE rates as 7.0
defined within American Petroleum Institute Recommended Practice 754.
Cont r act or s
42 VALERO STEWARDSHIP AND RESPONSIBILITY REPORT • 43You can also read
