Climate Change Data

Environmental Metrics

ESG Focus Areas

• Safety
• Citizenship
• Diversity & Inclusion
• Sustainability
• Product Stewardship
• Environment
• Workplace

Environmental Achievements

• Completed construction of and moved into new world headquarters with a smaller environmental footprint
• Achieved GreenCo Gold rating for Ambernath, India facility (25% reduction in water consumption, 29% reduction in Scope I and II GHG emissions, 25% reduction in packaging material consumption, 90% reduction in hazardous waste, 33% reduction in energy consumption since 2015)
• 68% reduction in energy use and 78% reduction in water use in new headquarters compared to previous year
• 11% reduction in solid waste generation
• 5 million pounds of recycled materials
• 45% of blending and packaging facilities and 30% of warehouses achieved zero-landfill status

Social Achievements

• Launched new safety equipment in VIOC facilities resulting in zero incidents
• 100% of VIOC service center managers promoted from hourly positions
• 100% of company’s area managers and 90% of market managers hired internally
• Named one of the Best Places to Work in Kentucky
• Established Hands-On Assistance Charitable Foundation funded by VIOC team members to help employees facing hardship
• Over $281,000 raised for charitable organizations during the annual U.S. Valvoline Employee Giving Campaign
• $1M+ raised for Children’s Miracle Network Hospitals since 2009
• Significant increase of $21 million in diverse supplier spending (365% increase from 2016)

Governance Achievements

• 50% of Valvoline’s senior leadership team are women
• 89.3% of safety data sheets generated electronically

Climate Goals & Targets

Environmental Challenges

• Facial injuries to VIOC team members rising
• Need for better performing motor oil and cleaning treatments for modern, direct-inject engines
• Reducing environmental impact of operations

Mitigation Strategies

• Developed custom faceguard resulting in zero incidents
• Developed new products (First Defense™, Easy GDI™, Modern Engine Full Synthetic Motor Oil™) for modern direct-injection engines
• Implemented sustainable design features in new headquarters
• Implemented GreenCo program in India
• Waste Minimization Program
• Zero-Landfill Program

Supply Chain Management

Responsible Procurement

• Supplier Diversity Program

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4

Certifications: Responsible Care 14001 (RC14001)

Sustainable Products & Innovation

• Valvoline™ HD GEO SLF
• Premium Blue One Solution™ 9200
• Easy Pour Bottle
• Modern Engine Full Synthetic Motor Oil
• First Defense
• EasyGDI

Awards & Recognition

• EHS Today’s America’s Safest Companies (2017)
• Association for Talent Developments’ BEST Awards (second-best talent development program)

Environmental Metrics

ESG Focus Areas

• Citizenship
• Sustainability
• Diversity, Equity, & Inclusion

Environmental Achievements

• 6.8 percent reduction in Valvoline’s operation’s carbon emissions from a 2016 baseline
• Four percent of global Valvoline operation’s carbon emissions addressed with the purchase of RECs

Social Achievements

• Established a diversity, equity and inclusion council
• Improved safety metrics by leveraging a safety-focused culture
• Invested in training and career development that reduced turnover in stores
• Global Giving Campaign raised over $694,000 for charities
• 100 percent of VIOC service center managers promoted from within

Governance Achievements

• No significant noncompliance incidents of corruption reported

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic

Mitigation Strategies

• Developed a playbook with policies to protect employees and customers
• Secured and distributed health and safety supplies
• Reorganized facilities to maintain social distancing
• Implemented procedures to minimize the risk of transmission
• Established work from home protocols

Supply Chain Management

Supplier Audits: All suppliers are screened using environmental criteria.

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: RC14001 (Responsible Care 14001)

Sustainable Products & Innovation

• Valvoline EV Performance Fluids; Valvoline Hybrid Vehicle Full Synthetic motor oil; Valvoline High Mileage with MaxLife technology motor oil; Valvoline Advanced Full Synthetic motor oil; Valvoline Premium Blue™ heavy-duty motor oil; Valvoline Multi-Vehicle Automatic Transmission Fluid; and Zerex™ antifreeze; FlexFill™ bag packaging

Awards & Recognition

• STEP Ahead Honoree (Harvinder Matharu)
• Captain Misa Anastasijevic Award (Jasmina Stanić)
• HRO Today’s Talent Acquisition Leader of the Year Award (Brandie Dawson - finalist)
• BEST Awards #1 ranking for talent development (VIOC)

Environmental Metrics

ESG Focus Areas

• People
• Safety
• Environment
• Innovation

Environmental Achievements

• Reduced carbon intensity emissions in manufacturing and warehouse operations by 14.5 percent.
• Established a long-term goal to reduce Scope 1 and 2 Global Products carbon emissions by 50 percent by 2030.
• 68 percent of global plants and warehouses are zero-landfill sites.

Social Achievements

• VIOC raised nearly $900,000 for Children’s Miracle Network Hospitals in fiscal 2021.
• Improved female and non-white representation at “Director & Up” levels.
• Achieved an overall DEI score of 84 percent.
• 100 percent of VIOC service center managers, area managers, and market managers promoted from within.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Lingering COVID-19 challenges.

Mitigation Strategies

• Risk mitigation and business continuity plans; monitored government guidelines; implemented travel and return-to-work protocols; advanced VIOC’s stay-in-the-car experience.

Supply Chain Management

Supplier Audits: All suppliers are screened using environmental criteria.

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: RC14001 (Responsible Care 14001)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• XEV hybrid, plug-in hybrid and pure EV product suite

Awards & Recognition

• #7 Association for Talent Development BEST Award Winner

Environmental Metrics

ESG Focus Areas

• Healthcare
• Environment
• Education
• Livelihood
• Disaster Relief

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• People
• Safety
• Environment
• Innovation

Environmental Achievements

• Diverted nearly 500 tons of standard trash from landfill in 2023.
• Recycled over 17 million gallons of waste oil in 2023.
• Invested over $1.1 million in preventive maintenance and energy efficiency upgrades across company-owned stores in the US in 2023.
• REC purchases in 2023 covered 15% of total electricity consumption.

Social Achievements

• Raised just over $1.2M for Children’s Miracle Network Hospitals in 2023.
• Relaunched Employee Resource Groups in 2023.
• Expanded professional growth and development opportunities for service center employees.
• Invested in tools, resources, and partnerships to build more diverse talent pipelines.
• Majority of service center manager, area manager, and market manager openings filled through promotion of team members.

Governance Achievements

• No significant incidents of corruption.
• No significant noncompliance with anti-competitive behavior, anti-trust, and monopoly practices.
• Complies with tax laws of every taxing jurisdiction.

Climate Goals & Targets

Environmental Challenges

• Need to re-evaluate environmental sustainability performance and establish new retail-focused climate action targets after the sale of Global Products business.
• Improving reporting capabilities on proportion of spending on local suppliers.

Mitigation Strategies

• Conducting a thorough evaluation of energy consumption to set fresh environmental sustainability goals and climate action targets, including GHG emissions reduction goals.
• Planning to disclose proportion of spending on local suppliers in FY24 CSR report.

Supply Chain Management

Supplier Audits: Third-party screening for environmental, health, and safety performance for new suppliers performing moderate-to-high-risk work.

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core Option, SASB general principles for Multiline and Specialty Retailers & Distributors

Third-party Assurance: Apex Companies, LLC (limited assurance on specific fiscal 2023 environmental data)

Awards & Recognition

• Ten-time winner of the BEST Award for training excellence
• Top-rated franchisor by Entrepreneur and Franchise Times
• National Corporate Champion by the Cystic Fibrosis Foundation (VIOC)