BRAT LE IN E G C 19 20 Stewardship & Responsibility 80 20 Report 40 YEARS Our products fuel modern life and make a better future possible. June 2020 CANADA HARTLEY ALBERT CITY JEAN GAULIN ALBION FORT DODGE (QUEBEC) AURORA WELCOME What’s InsideCHARLES CITY WHOLESALE MARKETING PRESENCE JEFFERSON MONTREAL LAKOTA BRANDED WHOLESALE RIGA PRESENCE BLUFFTON VALERO REFINERIES UNITED STATES VALERO ETHANOL PLANTS BLOOMINGBURG VALERO TERMINALS LINDEN BENICIA VALERO OFFICES MOUNT VERNON DIAMOND GREEN DIESEL WILMINGTON MEMPHIS PIPELINES SAN ANTONIO MCKEE PAYMENT SERVICE CENTER ARDMORE ST. CHARLES MERAUX SUNRAY WIND THREE RIVERS BILL GREEHEY PORT ARTHUR (CORPUS CHRISTI EAST AND WEST) HOUSTON UNITED TEXAS CITY KINGDOM MEXICO MEXICO CITY 03 04 06 07 IRELAND PERU LIMA PEMBROKE LONDON Who We Are 40 Years Global A Letter from of Fueling Operations our CEO Generations Safety The interlocking Governance value of our Environment Guiding Principles Employees Community 08 09 10 20 2019 ESG Guiding Safety Environment Summary Principles 36 48 62 Community Employees Governance 2 Who We Are REFINING RENEWABLE DIESEL ETHANOL Largest global World’s 2nd largest World’s independent renewable diesel producer* 2nd largest refiner *in joint venture with corn ethanol Darling Ingredients Inc. producer 15 petroleum refineries 3.2 million 275 million gallons 14 ethanol plants barrels per day per year in the U.S. with a combined throughput* capacity production capacity of Planned 100% *Processing of crude oil 1.73 billion gallons per year and other feedstocks expansion to compatible 675 million with existing Manufacturer gallons engines and and marketer of per year infrastructure 20% share of U.S. ethanol transportation fuels, by late 2021 (drop-in fuel) exports in 2019 petrochemical feedstocks and other specialty products Continued Produces low-carbon investment intensity renewable diesel ~6,000 employees and growth from recycled animal fats, used in ethanol cooking oil and inedible corn oil ~1,000 employees business Lowest-cost Safety is our operator in foundation the industry for success Low-carbon fuel Low-carbon fuel Environmentally responsible sold in California, well-positioned for operations Canada and Europe export growth Fortune 32 Headquartered in ~10,000 company San Antonio, Texas total employees Valero Stewardship and Responsibility Report • 3 BRAT LE IN E G C 19 20 80 20 40 YEARS 40 Years of Fueling Generations This year marks our 40th anniversary fueling generations ... 1980s 2000s Named for the mission San Antonio de Valero – Valero expands to the West Coast of the United the original name of the Alamo – Valero Energy States in refining, enters the branded wholesale Corporation purchases an interest in a small and marketing sectors and acquires more refineries Corpus Christi, Texas, refinery. along the U.S. Gulf Coast and in the U.S. Mid- Continent and Canada. Valero transforms the site into one of the world’s most advanced refineries, capable of processing The company pioneers new areas in low- the most difficult feedstocks into cleaner-burning carbon fuels and renewable energy, initially fuel. purchasing seven ethanol plants and completing a 50-megawatt wind farm powering its McKee refinery. 1990s Valero adds more refineries starting in 1997. 2010s Valero enters the Western European market in refining, marketing and logistics, and adds another U.S. Gulf Coast refinery. 4 with products that fuel modern life and make a better future possible. Beginning in 2013, Valero produces sustainable Over time, Valero has continued to evolve and renewable diesel from recycled animal fats, used innovate. The company’s performance and cooking oil and inedible corn oil, in a joint venture disciplined capital allocation decisions consistently called Diamond Green Diesel. have resulted in its Total Stockholder Return (TSR) outperforming the Dow Jones Index, the S&P 500 Valero expands its export business, taps new Index and the energy sector. markets in Mexico and acquires a major fuel importer in Peru, bolstering its Latin America All along, Valero has maintained a strong strategy. commitment to safety, reliability and environmental responsibility, and continues to be recognized among the world’s top refining Today … and marketing companies, and among the best employers. Valero has 15 refineries in the U.S., Canada and the U.K., and a total throughput capacity of In the community, Valero is proud of its legacy approximately 3.2 million barrels per day – making of support and positive outreach through an it the largest global independent refiner. international network of Volunteer Councils, proudly dedicating approximately 150,000 hours to Valero also is America’s largest renewable community efforts annually. Valero, its employees fuels producer. Diamond Green Diesel annually and the Valero Energy Foundation annually produces 275 million gallons of renewable diesel, generate more than $64 million for worthy with plans to more than double low-carbon charities, through direct donations or fundraising. production by the end of 2021, and Valero now has 14 ethanol plants with an annual production Valero has a workforce of about 10,000 capacity of 1.73 billion gallons. employees, ranks No. 32 on the current Fortune 500 list and is still based in its hometown of San The company supplies approximately 7,000 Antonio. independently owned fuel outlets carrying its family of brands in the U.S., Canada, the U.K., The company has counted many industry firsts, Ireland and Mexico, as well as rack and bulk and now proudly carries its legacy of strength markets in those countries and Peru. and stability forward, ever-evolving for future generations. Valero Stewardship and Responsibility Report • 5 Global Operations CANADA WHOLESALE MARKETING HARTLEY ALBERT CITY JEAN GAULIN PRESENCE ALBION FORT DODGE (QUEBEC) AURORA WELCOME CHARLES CITY BRANDED WHOLESALE PRESENCE JEFFERSON MONTREAL LAKOTA VALERO REFINERIES RIGA BLUFFTON VALERO ETHANOL PLANTS UNITED VALERO TERMINALS STATES VALERO OFFICES BLOOMINGBURG LINDEN DIAMOND GREEN DIESEL BENICIA PIPELINES MOUNT VERNON PAYMENT SERVICE CENTER WILMINGTON MEMPHIS MCKEE SAN ANTONIO SUNRAY WIND ARDMORE ST. CHARLES COGENERATION UNITS MERAUX (EXISTING/UNDER THREE RIVERS CONSTRUCTION) BILL GREEHEY PORT ARTHUR (CORPUS CHRISTI EAST AND WEST) HOUSTON TEXAS CITY UNITED KINGDOM MEXICO MEXICO CITY IRELAND PERU LIMA PEMBROKE LONDON 13 refineries 7,000 independently owned in the U.S. outlets carrying the Valero family Over 50 docks of brands in the U.S., Canada, 1 refinery 1 refinery the U.K., Ireland and Mexico in Canada in the U.K. 14 ethanol plants 4 cogeneration 3,100 miles in the Midwest plants in the U.S. of active pipelines of the U.S. and the U.K. ~130 million barrels 1 renewable diesel of storage in the U.S., 33 wind turbines plant in the U.S. the U.K, Ireland, in the U.S. Canada and Peru 6 A Letter from our CEO “Our growth projects have positioned us as leaders in producing fuels for a lower-carbon world — with multibillion-dollar investments and actual production capacity in ethanol and renewable diesel that surpass our peers.” Joe Gorder and employees take part in an annual food drive for the San Antonio Food Bank. For the past 40 years, we have been fueling Our greatest asset continues to be our employees. generations by advancing the future of energy through Their strong work ethic, ingenuity, generosity and engineering innovations and unmatched performance. volunteerism have helped Valero achieve both And we will continue to pursue our goal to be the operational excellence and strong community ties. We best operator in the business while addressing global proudly remain an employer of choice by providing climate change risks and protecting our employees challenging opportunities and promoting diversity and the communities where we work and live. and inclusion at every level and in every aspect of our company. While this report is about our 2019 accomplishments, the unprecedented times of the COVID-19 pandemic On the environmental side, our growth projects have brought significant changes to the world around have positioned us as leaders in producing fuels us. Our business is considered critical infrastructure, as for a lower-carbon world — with multibillion-dollar the products we make are essential to livelihoods and investments and actual production capacity in ethanol modern life. So we safely and responsibly continued to and renewable diesel that surpass our peers. So today, operate while ensuring we followed the recommended we are proud to add that, in addition to being the guidelines and best practices of the U.S. Centers largest global independent refiner, we are the largest for Disease Control and Prevention (CDC) and other renewable fuels producer in North America. health care authorities. Our team and our board of directors remain I am proud of Team Valero and its tireless focus on committed to continuous oversight of business safety. In 2019, we delivered the best year ever on risks, including climate change risks; reporting of refinery employee safety performance along with the environmental, social and governance matters; and lowest number of environmental events in company maintaining robust regulatory compliance and ethical history. standards. Since the start, 40 years ago, we have prioritized Our thoughts and prayers are with those who have safety, environmental stewardship, community been affected in the last months. We extend our engagement, employee programs and strong sincere appreciation for all the front-line workers who governance. They truly exemplify what differentiates are making personal sacrifices to keep us all safe. our company today. Thank you for your continued support and trust. We have always believed support of our community is vital. I am thankful our company is able to help people in this time of great need. We have contributed more than $3 million from Valero and the Valero Energy Foundation in the first part of 2020 for COVID-19 relief. Also, I am proud of the innovation and efforts of Joe Gorder our employees to shift production at our ethanol plants Chairman and to make hand sanitizer, which was donated to first Chief Executive Officer responders and others in need across the country.