ESG Report - 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:
from low-carbon fuels, and the carbon intensity from low-carbon fuels we produce and
sell or blend as well as from the low-carbon fuels we purchase and blend.
•
Product Specifications & Clean Fuel Blends, Percentage of Renewable Volume Obligation
(RVO) met through: (1) production of renewable fuels and (2) purchase of “separated”
renewable identification numbers (RIN), code EM-RM-410a.1.
•
•
Product Specification & Clean Fuel Blends, total addressable market and share of market
for advanced biofuels and associated infrastructure, code EM-RM-410a.2.
(3) the reduction of carbon emissions using carbon capture and storage projects
under development.
•
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.
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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 refining reportable segment (see our 2022 Annual Report on Form 10-K, page
7), includes the operations of our 15 petroleum refineries, the associated activities to
market our refined petroleum products and the logistics assets that support those
operations (refining logistics assets). Scope 1 GHG emissions from the 15 petroleum
refineries follow regulatory reporting obligations under U.S. 40 CFR Part 98 (Subparts C,
P, Y and PP); Commission Implementing Regulation (EU) 2018/2066 of 19 December 2018
on the monitoring and reporting of greenhouse gas emissions pursuant to Directive
2003/87/EC of the European Parliament and of the Council; and Quebec – Q-2, r. 15 Regulation respecting mandatory reporting of certain emissions of contaminants into the
atmosphere, respectively.
•
Scope 1 emissions from the associated activities to market our refined petroleum products
and the logistics assets that support those operations are de minimis and account for less
than 0.2% of the refining reportable segment.
•
Scope 1 GHG emissions related to the ethanol and renewable diesel segments of 2.1 million
metric tons CO2e are excluded in this disclosure, as they are not applicable to the SASB
framework in the Oil & Gas - Refining and Marketing industry standard.
•
Percentage of global refinery GHG emissions (Scope 1) covered under an emissionslimiting regulation that is intended to directly reduce emissions, including the California
Cap-and-Trade Program, the United Kingdom Emissions Trading Scheme, Quebec Capand-Trade System, and the U.S. federal New Source Review (NSR) permitting program for
greenhouse gases.
EM-RM-110a.2:
• Base year (2011) includes:
•
Refining Scope 1 emissions from the 15 refineries in our current portfolio. Sales,
acquisitions and closures were accounted for following SASB guidelines in the
calculation.
•
Refining Scope 2 market-based GHG emissions for purchased electricity and steam
were calculated according to the GHG Protocol using EPA-derived steam emissions
factors and energy supplier-specific emissions factors. Scope 2 location-based GHG
emissions were also calculated following the GHG Protocol.
•
The accuracy and reliability of the data and information, as well as the conformance with
the GHG Protocol, with respect to 2011 refining GHG emissions Scope 1 and 2 (market-based
and location-based), were verified by Lloyd’s Register Quality Assurance, Inc. (LRQA), an
independent third-party and an affiliate of Lloyd’s Register North America, Inc. We intend
to seek independent assurance statements on our refining Scope 1 and 2 GHG emissions
annually. Copies of independent third-party verifications and assurance statements can
be found on our website at www.valero.com > Investors > ESG > Other Reports.
•
Base year (2011) excludes Scope 1 and 2 GHG emissions related to the ethanol and
renewable diesel segments.
•
Target years 2025 and 2035 and Performance to Date:
•
In 2022, due to the early completion and start-up of renewable diesel plants in
Louisiana and Texas as well as reductions of GHG emissions, our performance
exceeded our short-term 2025 goal of reducing/displacing refining Scope 1 and 2 GHG
emissions by 63%, three years ahead of schedule.
•
Estimated displacements of GHG emissions for future years are based on measured
and estimated data with respect to the anticipated amount of low-carbon fuels
produced, the level of global low-carbon fuels blending and the number of low-carbon
fuels credits from low-carbon fuels, using currently available information and our
estimations of anticipated carbon intensity as well as carbon capture and storage
projects under evaluation. Calculations are based on life cycle analysis.
•
The initiatives included in the 2035 target are:
(1) the absolute reduction of refining Scope 1 and 2 GHG emissions (against 2011 base
year). Estimated refining Scope 1 and 2 GHG emissions are based on a combination of
measured and estimated emissions data using available information, including the
anticipated emissions reductions derived from operational improvements (Scope 1)
and energy suppliers (Scope 2). Scope 1 and 2 disclosures are based on U.S. 40 CFR Part
98 and the GHG Protocol, respectively.
(2) the avoided GHG emissions resulting from the substitution of petroleum gasoline
and diesel with the production of, blending of and credits from low-carbon fuels. The
calculation of avoided GHG emissions follows life cycle analysis and is based on a
combination of publicly reported low-carbon fuels production amounts of Valero’s
ethanol and renewable diesel, low-carbon fuels blending of and the number of credits
When calculating the avoided emissions from blending and to avoid double
counting, our low-carbon fuel production that contributes to our blending obligation
is excluded.
•
Carbon intensity estimations for actual progress and future years are based on
market-based carbon intensity calculations based on the verifications and audits of
applicable jurisdictions where these low-carbon fuels are sold as well as two sources
of low-carbon life cycle GHG emissions analysis models, the California Air Resources
Board’s CA-GREET3.0 used by California’s Low Carbon Fuel Standard (LCFS); and the
Argonne National Laboratory GREET3.0 2021 (ethanol) and 2019 (biodiesel) models and
published papers.
•
As the operator of the consolidated entity (Standards Application Guidance -3.0
Reporting Boundaries), avoided GHG emissions from the lower carbon intensity of
renewable diesel include the entire production of renewable diesel of the consolidated
entities.
•
Independent verification statements for low-carbon fuels inventory and validation
statement of the 2035 GHG emissions target can be found on our website at
www.valero.com > Investors > ESG > Other Reports.
Air Quality
EM-RM-120a.2: global refineries located in or near areas of dense population, which are
defined as urbanized areas with a population greater than 50,000.
Water Management
EM-RM-140a.1: (1) Total fresh water withdrawn and used by refining 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 refinery fresh water
withdrawn.
EM-RM-140a.2: In measuring the number of instances of non-compliance in any calendar
year that resulted in formal enforcement actions we look to the views of the SEC and define
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 and 2022 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 refinery.
EM-RM-150a.2:
• Valero currently has 6 operating refining 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 refining employee and contractor total recordable incident
rate (TRIR), which includes recordable injuries per 200,000 working hours, as defined by the
U.S. Department of Labor’s Occupational Safety and Health Administration; (2)(a)/(b) fatality
rate for work-related fatalities for global refining employees and contractors; (3) NMFR data
is not available.
Critical Incident Risk Management
EM-RM-540a.1: global refining Tier 1 process safety event (PSE) rates and Tier 2 PSE rates as
defined by the API RP-754.
Activity Metric
EM-RM-000.A and EM-RM-000.B: total combined average throughput volumes on an annual
basis (See Valero’s 2022 Annual Report on Form 10-K, page 47).
Global 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 – Refining & Marketing industry standard. References to
specific SASB Code numbers do not indicate the application of any or all definitions, metrics,
measurements, standards or approaches set forth in the SASB framework.
(b) SASB standards are not intended to, and cannot, replace any legal or regulatory
requirements that may be applicable to the company’s operations.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT •
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