Better Health for All

Valero's core business of refining petroleum into transportation fuels and petrochemical products, including gasoline, diesel, jet fuel, petrochemicals, and asphalt, causes severe, widespread health damage. This includes the use of highly toxic chemicals like modified hydrofluoric acid (MHF) in densely populated areas

, carcinogenic benzene emissions , and sulfur dioxide releases . While Valero is a significant producer of renewable diesel and ethanol and invests in low-carbon initiatives , these do not provide direct health benefits as defined by the rubric, resulting in a net severe negative health impact from its principal goods and services. In the past three years (2021-2023), Valero has had multiple serious safety incidents impacting the community, including sulfur dioxide releases , a $270,437 EPA fine for chemical safety violations , a $1.2 million EPA fine for chemical safety violations , and EPA concerns about underestimating benzene emissions and chemical spread . The company's risk disclosures are incomplete, with external findings from the EPA (2023 benzene underestimation , 2022 MHF underestimation , omission of mandatory information ) contradicting its stated commitment to transparency . Valero's operations generate major health-harming externalities, evidenced by over $1.19 billion in pollution penalties since 2000 , and recent EPA findings indicate that remediation is still inadequate in critical areas , leading to significant ongoing community health impacts. On the positive side, Valero offers comprehensive mental health programs for employees and their families, including an Employee Assistance Program, virtual therapy, and mobile apps , with 81% of participants reporting positive health impacts . The company also provided a $15 million grant in 2020 for Morgan's Wonderland Camp, supporting individuals with physical and developmental disabilities . Additionally, Valero's employee assistance program provides support for substance abuse . The company's products are not health-related, and it does not engage in pharmaceutical patents, clinical trials, or produce food products.

Fair Money & Economic Opportunity

Valero Energy Corporation is an energy company and does not offer lending or deposit services, consumer credit products, or financial service access points. Therefore, all KPIs related to financial products and services, such as underserved client share, pricing fairness, exploitative fee exposure, inclusion initiatives (as financial products), data accessibility (for customer finance data), fair lending compliance, wealth building outcomes (for financial product users), profit reinvestment (in community finance), financial literacy initiatives (for the public), debt burden ratio, geographic inclusion (for financial services), and product simplicity (for financial products), are not applicable to its core business. The company provides financial planning and education to its employees

and engages in extensive charitable giving to communities, but these activities do not fall under the scope of the specific financial product-focused KPIs.

Fair Pay & Worker Respect

Valero reported an employee Total Recordable Incident Rate (TRIR) of 0.16 in 2024

, with zero employee and contractor fatalities in 2022 and 2023. However, in November 2021, Cal/OSHA cited Valero and contractors for serious safety violations , resulting in over $1.75 million in fines , following a worker fatality at its Benicia refinery. The company maintains high pay equity, with 99% for gender and 100% for minority status. 88% of employees recommend Valero as a great place to work , and the U.S. voluntary employee turnover rate was 4.9% in 2022. 97% of eligible employees are enrolled in medical coverage. 18% of global employees are represented by labor unions. A class action lawsuit was filed in February 2024 against Valero Services, alleging California labor law violations including failure to pay wages and provide meal and rest periods.

Fair Trade & Ethical Sourcing

Valero Energy Corporation lacked engagement in verification, auditing, and certification of suppliers to address human trafficking and forced labor risks in 2014.

The company has established 'Conduct Guidelines for Business Partners' which articulate expectations regarding ethical behavior, compliance with laws, and adherence to human rights standards. Valero also publicly discloses its Human Rights Policy Statement, reflecting its commitment to respecting human rights across all operations. In 2023, a shareholder proposal called for an independent racial equity audit to examine impacts on nonwhite stakeholders, focusing on environmental justice, citing emissions affecting Hispanic and African American neighborhoods.

Honest & Fair Business

Valero incurred an $82 million fine in 2024 for air pollution violations.

The company provides a confidential, 24/7, independently operated Ethics Helpline, available in multiple languages for employees, contractors, directors, and business partners to report concerns anonymously and without fear of retaliation; reports are investigated and overseen by the Audit Committee. The company also undertakes extensive independent third-party verification of its ethical claims and compliance, including company-wide GHG emissions, a voluntary audit on environmental justice, periodic cybersecurity testing, contractor health and safety prescreening, and over 50 verifications for low-carbon fuels production.

Kind to Animals

Valero's joint venture, Diamond Green Diesel, sources cattle fat from Brazilian factories linked to slaughterhouses that bought animals from illegally deforested ranches in the Amazon.

One supplier sourced from meatpackers that failed a May 2025 audit for slaughtering 20,000 cattle from illegally deforested areas. Another supplier sourced indirectly from a farm blocked since 2006 for 15 square miles of illegal deforestation. In 2017, a Valero refinery pleaded guilty to environmental offenses, including an oil discharge into a stream. Valero also has conservation initiatives, such as a Biodiversity Action Plan on 500 acres at its Pembroke refinery, which has resulted in successful kestrel breeding for 20 years. Its Albert City Ethanol Plant facilitated banding over 100 goslings in 2022 and 2023. The company has also engaged in reforestation projects, planting over 5,300 trees across 52.5 acres, and contributed to coastal and swamp restoration projects, including restoring 200 acres and planting 28,000 tree saplings.

Planet-Friendly Business

Valero Energy Corporation reported 2023 Scope 1 and 2 greenhouse gas emissions totaling 32.8 million metric tons CO2e.

The company stated that accurate calculation of value chain (Scope 3) GHG emissions was not possible due to a lack of publicly available disclosures from suppliers and customers. Valero has not set SBTi-validated targets, instead stating that its strategy aligns with the International Energy Agency’s Net Zero by 2050 Scenario and the goals of the Paris Agreement based on internal assessment. In 2023, approximately 26% of Valero's total refinery energy consumption originated from renewable sources. The company recycled 96% of all refinery hazardous and exempted waste in 2023. Valero faces significant environmental compliance challenges, with 269 environment-related offenses recorded since 2000, incurring over $1.19 billion in penalties, including ongoing violations and penalties up to 2025. Its supply chain climate transparency is limited, with many crude oil feedstock suppliers and customers providing limited or no public disclosure of their Scope 1 and 2 emissions. For water management, 11.5% of fresh water was withdrawn from locations with high or extremely high baseline water stress in 2023. A 2023 Environmental Justice Audit Report concluded that Valero’s commitment to environmental protection, community engagement, and investment aligns with environmental justice pillars. Valero publishes TCFD reports, indicating full adoption of the recommendations, and conducts comprehensive climate scenario analysis, including pathways aligned with the IEA’s Net Zero by 2050 (1.5°C), Sustainable Development (2°C), and Stated Policies (3°C+) Scenarios. The company discloses that market conditions for some refineries could be challenging under hypothetical climate scenarios. Valero also engages in biodiversity efforts, including a 1,000-mile living shoreline project and a 500-acre Biodiversity Action Plan at its Pembroke refinery.

Respect for Cultures & Communities

Valero maintains hundreds of formal partnerships with community nonprofit organizations, environmental groups, and educational institutions, including specific colleges.

The company works with indigenous tribes to preserve sites of cultural, historical, and spiritual significance on infrastructure projects , and cultural resource considerations, such as archaeological sites and areas of tribal interest, are part of the evaluation process for major capital projects. No cultural appropriation incidents have been reported. Valero formally adopted an Environmental Justice Policy Statement in 2009 , aiming to treat neighbors fairly regardless of background and ensure opportunities to voice concerns . An independent Environmental Justice Audit Report in 2023 concluded that Valero's commitment to environmental protection, community engagement, and investment aligns with environmental justice principles. Community engagement efforts include hotlines, newsletters, direct mailings, site-specific websites, and Community Advisory Panels (CAPs) or Councils (CACs) which include community representatives. Communications, such as direct mailings and presentations, are provided in English and Spanish , and the Ethics Helpline is available in English, French, and Spanish. In 2023, Valero and its foundation generated over $77.6 million for charities, with employees contributing over 129,400 volunteer hours globally. However, Valero's Port Arthur refinery is located in a neighborhood that is over 90% African American and 60% low-income , ranking above the 95th percentile nationally for EPA’s air toxics cancer risk and respiratory hazard metrics. In 2023, a shareholder proposal urged an independent racial equity audit. The U.S. Environmental Protection Agency (EPA) announced a settlement in 2020 for alleged Clean Air Act violations related to fuel quality standards. In July 2022, the USEPA objected to Valero Houston’s Title V operating permit due to alleged non-compliance with CAA emission limits. According to USEPA’s ECHO database, there are five open/unresolved reports of violations related to Valero refineries.

Safe & Smart Tech

Valero has reported no cybersecurity incidents that have materially affected its business strategy, financial condition, or operations.

The company maintains a strong security program, including an Incident Response Plan, engagement of third-party experts, periodic tabletop exercises, penetration testing, and annual reviews of its information security framework. Valero implemented a cloud archiving solution in June 2022 for improved compliance and data governance. Its UK entity is registered with the Information Commissioner's Office (ICO), and its privacy statement was last updated in February 2025. In 2024, Valero established a company-wide cross-functional team to preliminarily assess the risks and opportunities from conventional and generative AI, providing a formal report to the Board, with assessments ongoing in 2025. All employees receive mandatory annual cybersecurity awareness training. Valero uses SSL encryption to protect data transmission for orders and account information, and encrypted cookies for user identity verification. There are no documented incidents of unauthorized data use, and the company employs strict security measures. Users can review and correct their personal data by emailing customer care and can modify browser settings to decline cookies. The company conducts penetration testing as needed, and annually performs Payment Card Industry Data Security Standard testing and firewall reviews. Valero provides only necessary personal data to contracted service providers and does not seek to gather personal data from persons 16 years or younger.

Zero Waste & Sustainable Products

Valero has a history of serious waste disposal and hazardous waste management violations, including spilling oil refinery waste into the Bay

and incurring nearly $82 million in fines for violations dating back to 2003. The company also failed to immediately notify state officials after three separate sulfur dioxide releases in 2018, 2020, and 2021, leading to a $270,437 penalty in 2025. Additionally, EPA inspections in 2022 identified chemical safety violations , and the company reported water quality non-compliance in 2023. Despite these issues, Valero demonstrates efforts in waste reduction and circularity. In 2023, 96% of all refinery hazardous and exempted waste was recycled , including over 40 million pounds of catalyst. The company implemented a Waste Navigator database in 2023 to track waste across its U.S. refining fleet. Valero is involved in waste-to-biofuel technology through an investment in Enerkem Inc. and is the world's second-largest producer of renewable diesel using waste-based feedstocks. Valero also extensively recycles water, with each gallon used an average of more than 16 times , and has implemented several water recycling projects, including one facility achieving "zero discharge" of wastewater. The company reduced refinery energy intensity by over 12% since 2012 and achieved over 96% flaring-free operations.