Valero Energy Corporation (VLO) — ESG & Values Scores

Environment story

Valero is a multinational refiner (15 petroleum refineries, ~3.2 million BPD) whose core revenue remains petroleum-based, with product-use (Scope 3) emissions inherent to its scale not shown as declining in the provided filings. No explicit net-zero target year is disclosed in the 10-K or proxy excerpts provided, and the company explicitly reserves the right to revise or cease climate-related disclosures as standards evolve. The company has made verifiable, non-offset capital investments ($6.0 billion) in renewable diesel, ethanol, SAF production, and carbon capture/sequestration infrastructure (e.g., Linden, Indiana CCS agreement), which constitute physical decarbonization efforts rather than pure offset purchases. Operational risk factors disclose recurring water-supply challenges at Texas refineries and multiple environmental/climate-related litigation matters, including allegations of deceptive climate disclosures.

Criticisms on file

Recurring water-supply challenges at certain Texas refineries requiring additional capital expenditures.
Source: VLO_10k.txt - Risk Factors, 'We are subject to risks arising from the availability and prices of natural gas, electricity, and water.'
Named as co-defendant in an Oregon county lawsuit alleging deceptive climate-related disclosures and seeking damages/abatement under tort theories.
Source: VLO_10k.txt - Risk Factors, 'We are subject to risks arising from litigation, government action, and mandatory disclosure rules related to climate- and other sustainability-related matters.'
Named as co-defendant in a federal class-action lawsuit in California alleging antitrust and consumer-protection violations related to LCFS compliance costs.
Source: VLO_10k.txt - Risk Factors, same section as above.
Aggressive state/local environmental enforcement and investigative actions targeting fossil-fuel companies, described as 'particularly acute in California.'
Source: VLO_10k.txt - Risk Factors, 'Applicable environmental, health, and safety laws and regulations expose us to various other risks.'

Disclosed initiatives

Low-Carbon Fuels Investment Program

$6.0 billion cumulative investment in low-carbon fuels businesses, including $4.1 billion in renewable diesel/SAF (Diamond Green Diesel) and $1.9 billion in ethanol production capacity.

Produces ~1.2 billion gallons/year renewable diesel and naphtha and enables neat SAF production at DGD Port Arthur.
Carbon Capture and Sequestration (CCS) Projects

Entered a stand-alone agreement in 2025 for CO2 capture, transport, and storage at the Linden, Indiana ethanol plant; evaluating similar CCS projects at other ethanol facilities.

Intended to lower carbon intensity (CI) scores of ethanol product and generate Section 45Q tax credits for sequestration.
Environmental Management Systems (CTEMS/EERA/FMS/LCAP)

Proprietary systems governing environmental excellence, fuels regulatory compliance, and low-carbon fuels assurance across refineries and plants.

Structured internal compliance and continuous-improvement framework for environmental performance.

Social story

Valero reports a low Total Recordable Incident Rate (TRIR of 0.13 employee / 0.19 contractor) and Tier 1 Process Safety Event Rate of 0.04 for 2025, indicating strong disclosed operational safety performance. Approximately 18% of the 9,811-person workforce is covered by collective bargaining agreements, with no disclosed strikes or NLRB actions in the provided filings. Specific CEO-to-median-worker pay ratio, workforce diversity percentages, and supply-chain human-rights audit results are not quantified in the provided source documents.

Criticisms on file

No material criticisms on file for this pillar.

Disclosed initiatives

Total Wellness Program

Umbrella program covering health care, wellness centers, caregiver support, tuition reimbursement, and fitness subsidies.

Aimed at improving employee health and retention outcomes.
Safety Training and Audit Programs

Year-round safety training for employees/contractors, safety audits, quality assurance visits, and risk assessments at facilities.

Refinery TRIR of 0.13 (employees) / 0.19 (contractors) and Tier 1 Process Safety Event Rate of 0.04 for 2025.
Veteran and Disability Hiring Commitment

As a federal contractor, approximately 11% of U.S. employees are veterans/reservists and approximately 12% have disabilities.

Reflects federal contractor compliance commitments.

Governance story

Valero maintains a single class of common stock (no dual-class structure) and reports 9 of 10 director nominees as independent (~90%), exceeding the 75% independence threshold. The company discloses a Political Contributions, Lobbying and Trade Associations Policy, and its risk factors indicate active engagement in seeking modification of Renewable Fuel Standard and low-carbon fuel program rules, which is treated as regulatory-easing lobbying activity. The company faces multiple active legal proceedings, including a federal antitrust/consumer-protection class action related to California LCFS compliance costs and an Oregon county lawsuit alleging deceptive climate disclosures.

Criticisms on file

Federal class-action lawsuit in California alleging antitrust and consumer-protection violations tied to LCFS compliance costs.
Source: VLO_10k.txt - Risk Factors, 'We are subject to risks arising from litigation, government action, and mandatory disclosure rules...'
Oregon county lawsuit alleging deceptive climate-related disclosures, seeking damages and abatement.
Source: VLO_10k.txt - Risk Factors, same section as above.
Sought SEC no-action relief to exclude 2026 stockholder proposal (2026 ARO Proposal) requesting disclosure of off-balance-sheet asset retirement obligations.
Source: VLO_proxy.txt - 'Additional Highlights—Low-Carbon Fuels, Cybersecurity/IT, and Compliance' section.

Disclosed initiatives

Sustainability and Public Policy Committee

Board committee overseeing HSE matters, sustainability/climate risks, political contributions, and lobbying activities.

Formal governance structure for climate and political-risk oversight.
Majority Voting Standard for Director Elections

Directors elected annually (non-classified board) by majority of votes cast.

Supports board accountability to shareholders.

These are Missionomics' own editorial scores — directional signals built from disclosed facts under a published method, not certifications or definitive ratings of Valero Energy Corporation. Coverage and confidence vary by data point, and figures can lag real-world changes. Read the full Methodology for sourcing, scoring, and correction details — or open Valero Energy Corporation in the app for interactive charts and portfolio building.

More in Energy

Exxon Mobil Corporation (XOM) Chevron Corporation (CVX) ConocoPhillips (COP) Marathon Petroleum Corporation (MPC) The Williams Companies, Inc. (WMB) Phillips 66 (PSX)