In our fourth year of participating in the CDP (formerly Carbon Disclosure Project) Climate Change Survey, Valvoline received a “B” score in 2022. CDP recognizes our score as above average globally and average in North America. Valvoline’s transparency, efficient operations, and research and development efforts contributed significantly to our score. Individual CDP category scores show Valvoline received high marks in business strategy and financial planning, governance, value chain engagement, risk, opportunity disclosures, and emission reduction strategies. We continue to make strides to improve our CDP scores by setting more aggressive carbon reduction and sustainability targets, undergoing third-party verification, and initiating the collection of supply chain scope 3 emissions. Learn more about our CDP reporting in our GHG Summary and on cdp.net.

Valvoline’s carbon reduction strategy focuses on avoiding carbon emissions, reducing emissions within our own operations, and mitigating the remaining emissions.

In 2022 Valvoline continued to build on the Scope 3 emissions inventory initiated in 2021, expanded REC purchases, targeted carbon reductions at sites identified with high carbon emitting electric sources, executed a power purchasing agreement (PPA), and reduced energy intensity by participating in the US Department of Energy’s Better Plant Program.

In fiscal year 2022, Valvoline manufacturing and warehouse operations increased REC purchases by 13 percent over fiscal year 2021. Valvoline committed in 2022 to a long-term PPA contract with Orsted for carbon offsets from a renewable energy windfarm to be completed in the last quarter of 2023. The agreement was entered into to offset all of Valvoline’s Scope 2 electric carbon emissions in North America. The PPA was transferred to Valvoline Global Operations in connection with the sale of the Global Products business.

Valvoline’s manufacturing and warehouse operations reduced carbon intensity emissions by 21% percent from our 2016 baseline. Actual carbon emissions decreased by 6% percent over the same time due to a significant increase in global volume.

Based upon this progress, Valvoline revised its short-term goal to offset 50% of its combined Scope 1 and 2 facility emissions by 2025.

Valvoline’s carbon reduction strategy has been significantly focused on the manufacturing operations of its Global Products business. In connection with the sale of the Global Products business, effective March 1, 2023, Valvoline Inc. no longer manufactures lubricants or coolants. As a pure-play retail automotive services provider, Valvoline is in the process of assessing its carbon emissions and evaluating carbon reduction strategies.

2022 ENVIRONMENTAL GOALS AND METRICS

20%

reduction in our U.S. manufacturing and warehousing energy intensity by 2029

50%

reduction in our combined Scope 1 and 2 facility carbon emissions by 2025

10%

achieved our goal to reduce carbon intensity by 10% by 2022

13%

increase in recycled oil

Apex Companies, LLC (Apex) was engaged in 2022 to conduct an independent verification of the GHG emissions reported by Valvoline. APEX determined the GHG emission reported by Valvoline to be materially accurate. View report here.