Valero Energy : 2025 Valero Report on Guiding Principles

Valero Report on Guiding Principles

Safety, Environment, Community, Employees and Governance

Valero.com August 2025

‌Contents

ON THE COVER: Valero volunteers at a Habitat for Humanity build event in San Antonio.

3 • Introduction

3 A Message from our CEO

4 Our Business

6 Highlights

8 Valero's Strategy

10 Low-Carbon Innovation

16 GHG Emissions

20 • Safety

30 • Environment

40 • Community

48 • People

58 • Governance

70 • Appendix

70 SASB Report

1. Notes

2. Cautionary Statements Regarding Forward-Looking Statements

3. Non-GAAP Disclosures

Please visit https://www.valero.com to learn more about our company. The terms "Valero," "we," "our" and "us," when used herein, may refer to Valero Energy Corporation (NYSE: VLO), to one or more of our consolidated subsidiaries and/or consolidated joint ventures, or to all of them taken as a whole. The term "DGD," when used in this report, may refer to Diamond Green Diesel Holdings LLC, its wholly owned consolidated subsidiary, or both of them taken as a whole.

Policies and Procedures

This report includes statements regarding various policies, values, standards, approaches, methodologies, procedures, processes, systems, strategies, programs, initiatives, assessments, technologies, practices, metrics and similar measures related to our sustainability and climate-related data, disclosures, targets, long-term ambition, updates, actions, performance, and compliance systems (collectively, "Policies and Procedures"). While we believe that our Policies and Procedures reflect our business strategy and are reasonable at the time made or used, as our business or applicable methodologies, standards, or regulations develop and evolve, we may revise or cease reporting or using certain Policies and Procedures if we determine that they are no longer advisable or appropriate, or we

are otherwise required to do so. References to Policies and Procedures in this report do not represent guarantees or promises about their efficacy or continued implementation or use, or any assurance that any such Policies and Procedures will apply in every case. Such Policies and Procedures are subject to risks, uncertainties and other factors, some of which are beyond the control of Valero and are difficult to predict, and there may be circumstances, factors or considerations that may cause different implementation thereof, revised or discontinued use thereof or exceptions in specific instances. Please see Forward-Looking Statements below and the risk factors in our Annual Report on Form 10-K for the year ended December 31, 2024.

Forward-Looking Statements

This report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 (the Securities Act) and Section 21E of the Securities Exchange Act of 1934 (the Exchange Act), including, but not limited to, statements about our Policies and Procedures. Please see the Cautionary Statement Concerning Forward-Looking Statements set forth on page 73 of this report, which includes important information regarding the identification of forward-looking statements used in this report and important factors that could cause actual results to differ materially from those in the forward-looking statement.

Additional Information About This Report

This report and the disclosures herein are not "soliciting material," are not deemed filed with the Securities and Exchange Commission (SEC), and are not to be incorporated by reference into any of Valero's filings under the Securities Act or the Exchange Act, whether made before or after the date of this report and irrespective of any general incorporation language therein unless specifically identified in such filing as being incorporated by reference in such filing.

This report discusses or references other Valero reports, policies and disclosures that are available on Valero's website, as well as certain third-party conclusions, reports and data (the foregoing, External Materials). Such External Materials are not themselves a part of this report. Furthermore, references in this report to website URLs are intended to be inactive textual references only and the content of such websites is not a part of this report.

This report represents a good faith effort by Valero to address its efforts, initiatives and performance on an array of diverse and broadly defined sustainability and climate-related topics and other matters of interest to certain stakeholders. The inclusion of or reference to any such information in this report is not an indication that this information or statements related thereto are necessarily material to investors or require disclosure in our filings with the SEC.

The information provided in this report is intended for interested readers in the United States. Because science is evolving, and comprehensive review is not feasible, references and analyses provided are merely intended as an aid to readers to help understand Valero's approach and considerations in our business strategy.

Introduction

Safety

Environment

Community

People

Governance

Appendix

A Message from Our CEO

Mr. Riggs at Mission Road Development Center in

San Antonio.

In 2024, we had our best year ever for personnel and process safety, as well as one of our best years for environmental scorecard performance. I am very proud of the entire team and these accomplishments, as the results reinforce our

view that safe and reliable operations drive overall performance and excellence.

We demonstrated our refining system's flexibility and the capability of our commercial and operations teams to secure and process the most economic crude oils. We continue investing in improving the margin capability of our

refining portfolio through disciplined refining optimization and strategic growth projects. We also set a record for ethanol production with the expansion of capacity and process optimization at many of our ethanol sites. The large-scale Sustainable Aviation Fuel (SAF) project in Texas was successfully started up in the fourth quarter of 2024 and is now fully operational.

On a consolidated basis, we have invested more than $5.8 billion in our low-carbon segments, which have positioned us as one of the largest manufacturers of renewable diesel, SAF and ethanol in the world. We also continue to evaluate and develop economic projects to further reduce the carbon intensity of our ethanol business.

Looking ahead, we still expect product demand to exceed supply with the announced refining industry shutdowns this year and the limited capacity additions beyond 2025, supporting long-term refining fundamentals.

We remain focused on our strategy to maintain operating excellence, execute our projects well, preserve discipline around capital investments and our commitment to stockholder returns.

I feel honored every day to work with an outstanding team of more than 9,900 employees who have demonstrated commitment to advancing transportation fuels through innovation, ingenuity and unmatched execution.

I extend my deepest gratitude to our Board for its steadfast support, our stockholders for their investment and

our business partners and other stakeholders for their trust.

R. Lane Riggs

Chairman, Chief Executive Officer & President

Our Business

We are a Fortune 500 company (NYSE: VLO) and a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products, and we sell our products primarily in the United States (U.S.), Canada, the United Kingdom (U.K.), Ireland and Latin America. We manage our operations through our Refining, Renewable Diesel and Ethanol segments.

Refining Segment

WORLD'S PREMIER INDEPENDENT REFINER - GROWTH PROJECTS FOCUSED ON COST CONTROL, OPTIMIZATION AND MARGIN EXPANSION

15

petroleum

refineries

3.2

million barrels per day (bpd) of high-complexity throughput capacity

lowest-cost producer of gasoline, diesel, jet fuel and other specialty products, including petrochemicals and asphalt

Renewable Diesel Segment

WORLD'S 2ND LARGEST RENEWABLE DIESEL PRODUCER - HIGH-RETURN PROJECTS TARGETING GROWING

LOW-CARBON MARKETS

reduction in

renewable

up to

1.2

billion gallons per year of renewable diesel

up to

235

million gallons per year of synthetic paraffinic kerosene (SPK) or neat SAF1

up to

80%

renewable diesel's life cycle GHG emissions, compared with traditional diesel2

diesel and blended SAF are compatible with existing engines and

100%

Ethanol Segment

infrastructure

WORLD'S 2ND LARGEST CORN ETHANOL PRODUCER - DEVELOPING ECONOMIC PROJECTS TO FURTHER

REDUCE CARBON INTENSITY

12

billion gallons

million tons

at least

reduction in life cycle GHG

existing logistics assets well

ethanol

plants

1.7

per year production capacity

per year of dry

4.4

distillers grains production capacity

30%

emissions,

compared with petroleum gasoline2

positioned to support export growth

VALERO'S VISION

The world requires reliable and affordable energy, and we see this as an opportunity. We are advancing the future of energy through innovation, ingenuity and unmatched execution.

EEMMPPLOLYOEESYEES

We consider our employees a competitive advantage and our greatest asset. We foster a supportive culture and

provide a safe, healthy and rewarding work environment with opportunities for growth.

GGOOVVERENRANNCEANCE

We view our stakeholders as partners to

whom we seek to deliver operational excellence, disciplined management of capital and longterm value on a foundation of strong governance and ethical standards.

CCOOMMMMUNIUTYNITY

We will be a good neighbor by sharing our success with the communities where we live

and work through volunteerism, charitable giving and the economic support of being a good employer.

EENNVVIRIORNMOENNT MENT

We are committed stewards of the

environment.

SSAAFFETEY TY

Safety is our foundation for

success.

Guiding Principles

Introduction

Safety

Environment

Community

People

Governance

Appendix

WELCOME

JEAN GAULIN

(QUEBEC)

HARTLEY ALBION

ALBERT CITY AURORA

FORT DODGE LAKOTA

CHARLES CITY

BLUFFTON

MONTREAL

CANADA UNITED STATES

BLOOMINGBURG

BENICIA

WILMINGTON

AMARILLO

LINDEN

MOUNT VERNON

MEMPHIS

MCKEE

ARDMORE

THREE RIVERS

SAN ANTONIO

BILL GREEHEY

(CORPUS CHRISTI EAST AND WEST)

ST. CHARLES MERAUX

PORT ARTHUR HOUSTON

TEXAS CITY

MEXICO CITY

MEXICO

WHOLESALE MARKETING PRESENCE BRANDED WHOLESALE PRESENCE

VALERO REFINERIES

VALERO ETHANOL PLANTS VALERO TERMINALS

PERU LIMA

VALERO CORPORATE OFFICES

DIAMOND GREEN DIESEL

(RENEWABLE DIESEL PLANTS)

SUSTAINABLE AVIATION FUEL (SAF) PRODUCTION

U.S. RENEWABLE DIESEL WHOLESALE PRESENCE PIPELINES

PAYMENT SERVICE CENTER SUNRAY WIND COGENERATION UNITS

EXPANDERS

(ELECTRICITY PRODUCED FROM EXHAUST GASES)

UNITED KINGDOM

IRELAND

PEMBROKE

LONDON