HOW WE ARE MAKING A DIFFERENCE
In our second year of participating in the CDP Climate Change Survey, Valvoline received a “B” score which CDP identified as above average for the chemical sector. We attribute this score, in part, to Valvoline’s transparency, efficient operations, product research and development efforts. CDP category scores show Valvoline received high scores in business strategy and financial planning, governance, value chain engagement, risk, opportunity disclosures and emission reduction strategies. Valvoline is working to further improve our CDP scores by setting more aggressive decarbonization and sustainability targets and initiating work on verification and 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 Emission Program
Valvoline’s global corporate carbon reduction strategy focuses on avoiding carbon emissions, reducing emissions within our own operations, and then looking to mitigate the remaining emissions. Valvoline has implemented this by seeking out opportunities to reduce carbon emissions through operational efficiencies, product development, additive power purchase agreements (PPAs), and renewable energy credits (RECs). In 2020, we surpassed our goal to reduce Valvoline’s operation’s carbon emissions by five percent over five years from a 2016 baseline by achieving a 6.8 percent reduction. Moving forward, we’re establishing 2020 as our new baseline and setting even more aggressive operational goals. Our short-term Valvoline operation’s goal is a 10 percent reduction in carbon intensity by fiscal year 2022. We are developing longer term goals that will be communicated in the 2021 CDP Climate Change Survey. In fiscal year 2020, Valvoline initiated our RECs program with the purchase of renewable energy credits as our electric purchase contract expired. In 2020, four percent of global Valvoline operation’s carbon emissions were addressed with the purchase of RECs. These purchases addressed load at our largest plant and our two largest distribution centers, all located in the U.S. Our short-term plan is to initiate a Scope 3 inventory, expand our REC purchases to our international and VIOC operations, target carbon reductions at sites identified with high carbon emitting electric sources, and execute a PPA. Based upon these efforts and strategies, Valvoline is well positioned to further reduce carbon emission.
CDP SCORE ABOVE INDUSTRY AVERAGE
Valvoline is consistently developing new product formulations to meet the ever-changing needs of today’s and tomorrow’s engines and automobiles. The growth of electric vehicles (EV) continues to expand, and we’re working in close collaboration with many original equipment manufacturer (OEM) partners to provide next-generation heat transfer and driveline fluids and lubricants to optimize performance.
Our dedicated EV testing lab provides a state-of-the-art resource to study and test battery technology to optimize formulations for our heavy-duty and passenger-car customers. EV batteries reach peak performance when operating within a specific temperature range, and Valvoline’s coolants help maintain an ideal temperature to increase battery life. We are also exploring other applications for our EV products such as wind turbines and power storage markets.
“It’s an exciting time in the automotive market with significant change on the horizon, and we are well-positioned to pioneer the fluid and lubricant advancements in the coming years.” David Turcotte, Valvoline VP— Technology & Product Development
Safety in China
Valvoline’s focus on safety is a bedrock of our company, and that commitment was on full display throughout the construction of our new manufacturing facility in Zhangjiagang, China. The 800,000 square foot blending and packaging facility, equivalent to 74,322 square meters or 10 FIFA football fields, that opened in early 2021 required over 1.7 million work hours to complete. There were no recordable safety incidents during the entire span of construction—a remarkable accomplishment and a testament to Valvoline’s safety-first approach. Our first hire for the project was an EH&S manager to help ensure the building would be constructed in a safety-first manner. All contractors were issued handbooks that illustrated safety requirements for all construction activities, our safety staff conducted regular site tours, and we celebrated safety milestones along the way to keep awareness levels high.
We also reported no cases of COVID-19 infection during construction. Through careful planning and intentional execution of mitigation strategies such as daily temperature checks, mandatory mask wearing, and avoidance of close contact whenever possible, we kept our team members and contractors healthy under extremely challenging conditions. The facility, with annual capacity in excess of 30 million gallons of lubricants and coolants, is now fully operational. Thanks to our hard work and diligence throughout 2020 as the site was being built, we can proudly reflect on the lengths we went to keep our people safe and healthy.
BELOW INDUSTRY AVERAGE INJURY RATE
BELOW INDUSTRY AVERAGE INJURY RATE
REDUCTION IN OUR INJURY RATE OVER THE PRIOR YEAR, COMPANY-WIDE
*Based on 2019 Bureau of Labor Statistics data