2021 Environmental, Social and Governance Report
About this ESG Report: An Ongoing Commitment
Our latest ESG report outlines our efforts to live our corporate values underlying our environment, social and governance efforts. We remain committed to improving in these areas as responsible corporate citizens.
The report focuses on these three areas
Message from Our CEO
- Rebuilding our income generation capacity
- Investing in projects that improve our financial strength and market competitiveness
- Defining strategies on how to reduce greenhouse gas emissions, whether with direct project implementation or through partnerships with third parties.
This last year tested our resolve on many levels, as the pandemic continued to disrupt businesses and personal lives and weaken the economy, we were also significantly affected by Winter Storm Uri, both financially and operationally. Through it all, we never lost sight of our ESG priorities as we maintained our focus on laying the groundwork for future emissions improvements; enhancing and reinforcing our governance, ethics and compliance initiatives; and supporting our employees and local communities.
We know there is still work to be done, especially as energy use and markets continue to change. We believe fossil fuels will continue to be an important component of the world’s needs well into the future, and we’re working hard to find ways to reduce the energy and carbon-intensity of feedstocks for our refineries to competitively meet those needs. Utilizing the strategies outlined above, we believe we can play a positive role in the larger energy transition by implementing sound ESG policies.
Carlos Jordá, President & CEO
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Our Operational Excellence systematic approach keeps us competitive for our investors, and this focus ensures the greatest achievable protections for our employees, the environment and the communities where we live and work.
2021 Environmental Performance Highlights included:
- Overall Environmental Performance was 0.208, better than our target - the average of our performance over the previous five years - but fell short of our overall best performing year (0.152 in 2020).
- Created and filled the new position of Vice President, Health, Safety and Environmental Protection, a position aimed at further improving the effectiveness of communications and integrity of program across all operations.
- Our Lemont Refinery and Lake Charles Refinery each achieved record environmental performance, including “time not in flare” of 99.8% and 99.9% respectively and excellent reliability performance.
- Our Corpus Christi Refinery received the Energy Star certification from the U.S. Environmental Protection Agency for the second year in a row.
Total Air Emissions from Refineries(VOC, NOx, CO, SO2 & PM10; Metric Tons/MillionBarrels of Throughout*)
* VOC, NOx, CO, SO2 and PM10, as certified in annual air emission inventories.
Total Air Emissions from Refineries
A key component of Operational Excellence is to routinely inspect and maintain systems that monitor and control emissions associated with our operations. In 2021 we initiated a review of potential next generation technologies designed to detect and improve response time to possible equipment leaks. These new technologies go beyond current regulatory requirements and implementation would likely require collaboration with federal and state agencies.
Greenhouse Gas Emissions
CITGO continues to track and report its Scope 1 GHG emissions for our refinery operations, consistent with EPA reporting requirements. We estimate that 99% of our GHG emissions come from refining operations so we will be focused on our refining operations for our efforts to lower GHG emissions. For 2021, CITGO refinery GHG emissions remained relatively stable compared to levels over the last five years, taking into account downtime caused by Winter Storm Uri on our Corpus Christi refinery. We have been collecting and assessing Scope 1 emissions for our wider operations to include in future ESG and other performance reports.
Greenhouse Gas Emissions
from Refineries(Scope 1)
Energy Use at Refineries(Energy Use; Thousand BTUs
per Barrel Throughput*)
per Barrel Throughput*)
*Figures include purchased electricity at the refineries.
Energy Use
Our long-term energy use strategy includes:
- Tracking energy use details at our refineries to improve our understanding where modification projects associated with safety, reliability, or emission reductions might also realize more energy savings.
- Revising capital project planning considerations to include energy-saving criteria for those projects executed for turnarounds and others within our Medium-Term Planning window.
- Investing in developing more internal talent to explore opportunities related to how we source electricity and steam, including potential to collaborate with third parties in the renewable electric generation space.
- Appointed one of our most experienced engineers to fill the position of Energy Transition Strategist created in 2020 reporting directly to the Vice President of Strategic and Corporate Planning.
- Evaluated opportunities to produce renewable fuels such as biodiesel.
Water Use
Water use reduction initiatives continue to be implemented, such as monitoring to prevent utility leakage and minimize steam waste. [Footnote: As previously reported, 2019 water use data was more representative of normal operations; 2020 water use at Lake Charles was reduced due to the impacts of hurricanes Delta and Laura and COVID-19 economics; and in 2021 water use at Corpus Christi was reduced in part due to the 15-day shutdown caused by Winter Storm Uri.]
Aggregate Water Use at Refineries(Aggregate Water Use; Million Cubic Meters)
Energy Use at Refineries(Energy Use; Thousand BTUs
per Barrel Throughput*)
per Barrel Throughput*)
*Figures include purchased electricity at the refineries.
Waste Generation
Waste generation from refineries is highly variable depending on factors such as periodic turnarounds, tank cleanings, routine and nonroutine repairs, remediation projects, changing characteristics of feedstocks, and economic factors. [Footnote: As previously reported, our refineries showed increased levels of waste generation in 2018 and 2019 resulting from unusual activities such as a soil remediation project, dredging at a stormwater retention basin, a larger than usual turnaround project, filter clay and tank cleaning projects.]
Corporate Environmental Stewardship Committee
The employee-driven Corporate Environmental Stewardship Committee (ESC) achieved several “firsts,” in 2021 including a Holiday Recycling Drive, Virtual Earth Week and E-Recycling Drive, and a beach clean-up with the Galveston Bay Foundation. On-going communications to headquarters employees also continued to reinforce individual energy efficiency and recycling practices.
Social
People
Our employees are the heart of every aspect of our business, reflecting a wide cross-section of society with strong connections in the diverse communities in which our operations are located. We are proud of our diverse employee community and of our continued support for employees’ commitments to serve as agents of change through contributions and volunteer efforts in the various communities where we work.
Total Headcount | |||
|---|---|---|---|
| 2021 # of | 2021 # of | |
Corporate/Corporate Field | 1312 | 44 | |
Corpus Christi | 503 | 592.35 | |
Lake Charles | 973 | 791.34 | |
Lemont | 526 | 421.74 | |
Total | 3314 | 1849.43 | |
Diversity and Inclusion
CITGO remains committed to maintaining a diverse and inclusive workforce. We believe that fostering workplace environments in which different backgrounds, experiences, points of view, politics, religions and gender are embraced, valued and respected is critical to our continued success and innovation. CITGO has not set specific diversity targets for its Board, senior management team, or workforce, we have realized an inclusive and diverse workforce through our longstanding commitment to fair hiring, retention and development opportunities, all of which go hand in hand with our efforts to build and maintain a strong ethics and compliance environment.
Female and minority employees compared | |||
|---|---|---|---|
| 2021 # | 2021% | |
Female | 658 | 19.86% | |
Minority | 1026 | 30.96% | |
Total | 3314 | ||
Female and minority employees compared | |||
|---|---|---|---|
| 2021 # | 2021% | |
Female | 336 | 37.00% | |
Minority | 355 | 39.10% | |
Total | 908 | ||
Female and minority employees classified as supervisors | |||
|---|---|---|---|
| 2021 # | 2021% | |
Female | 88 | 16.36% | |
Minority | 125 | 23.23% | |
Total | 538 | ||
Female and minority employees classified as middle managers* | |||
|---|---|---|---|
| 2021 # | 2021% | |
Female | 40 | 20.83% | |
Minority | 47 | 24.48% | |
Total | 192 | ||
Female and minority employees classified as senior managers* | |||
|---|---|---|---|
| 2021 # | 2021% | |
Female | 1 | 6.67% | |
Minority | 2 | 13.33% | |
Total | 15 | ||
| *Figures as of December 31, 2021 | |||
Safety
Safety is our top core value that shapes decisions daily at every level throughout the enterprise. It also serves as the foundation of our Operational Excellence initiatives. In 2021, we initiated a new method to measure our responsiveness to near-miss, high-potential incidents (HPIs) that could have resulted in significant injuries or incidents. This included weekly communications throughout the organization to share HPI event details, to promote hazard recognition and share how each hazard was addressed. These communications served to reinforce the value of employee control of the workplace environment, incident learnings and to reduce the risk of recurrence. CITGO exceeded its target related to this metric and is exploring additional leading metrics and learnings that help reduce risk.
Safety Highlights
- COVID-19 Business Continuity Plan Team maintained safe practices and sufficient supplies to support operational stability through the ongoing pandemic.
- Achieved a 0.160 TRIR (total recordable incident rate) and a 0.09 DART (total days away restricted duty rate). Our combined Occupational Safety performance was our second-best since our record year in 2012.
- Terminals and Pipeline business unit had a single OSHA reportable case.
- The International Liquids Terminal Association (ILTA) awarded CITGO its 2021 Safety Excellence award.
- Corpus Christi Refinery contractors went 25 months without an OSHA recordable injury.
- Lake Charles achieved record safety performance with no OSHA recordable injuries for employees for the first time in the refinery’s history.
- Lemont Refinery achieved near-record safety performance, including no DART cases for employees or contractors.
- Registered the lowest number of Process Safety Incidents on record (10 combined PSE Tier 1 & 2 incidents) and the second-best Process Safety Index 0.60 since PSE reporting began in 2012.
- Implemented an improved Process Hazard Analysis (PHA) standard including an improved “layers of protection” analysis providing for a more structured and rigorous PHA process.
- Exceeded the target number for communicating and closing all action items arising from High Potential Incidents
- Invested $100 million for regulatory and HSE projects, including continued risk mitigation in Facility Siting program improvements.
Safety Performance Data
| Lake Charles Refinery | Lemont Refinery | Corpus Christi Refinery | Terminals and Pipelines | Lubricants and Corporate | ||||||||||
| OSHA Recordable Injury Frequency | ||||||||||||||
| Contractor | Employee | Total | Contractor | Employee | Total | Contractor | Employee | Total | Contractor | Employee | Total | Contractor | Employee | Total |
| 0.16 | 0.00 | 0.10 | 0.15 | 0.33 | 0.23 | 0.00 | 0.16 | 0.06 | 0.00 | 0.46 | 0.28 | 1.17 | 0.30 | 0.37 |
| OSHA Lost Workday Frequency | ||||||||||||||
| Contractor | Employee | Total | Contractor | Employee | Total | Contractor | Employee | Total | Contractor | Employee | Total | Contractor | Employee | Total |
| 0.16 | 0.00 | 0.10 | 0.00 | 0.00 | 0.00 | 0.00 | 0.16 | 0.06 | 0.00 | 0.46 | 0.28 | 0.00 | 0.20 | 0.18 |
| Process Safety Incident Rates | ||||||||||||||
| T-1 | T-2 | T-1 | T-2 | T-1 | T-2 | T-1 | T-2 | T-1 | T-2 | |||||
| 0.07 | 0.07 | 0.00 | 0.08 | 0.28 | 0.22 | 0.28 | 0.00 | 0.00 | 0.00 | |||||
ENABLON Incident Management System
CITGO made considerable progress on our Enablon implementation project for safety incident management. This centralized platform tracks incident reporting, investigation and action plan management and aims to improve the consistency of incident treatment, visibility of hazard recognition learnings, and responses to safety and operational issues so we can further improve the efficiency of and responses to safety management system performance and operational issues. We also completed the Management of Change framework in the system and initiated roll-out. We continue to move closer to our vision that includes other enhancements such as virtual reporting, electronic audits and investigations, remote access to equipment data, operating procedures and equipment maintenance data, all to more efficiently support improved reliability and the safety of our employees.
Community
CITGO has a long-standing tradition of corporate citizenship. From educational initiatives to disaster recovery, environmental stewardship, sponsorships and strategic associations, we create meaningful impact and empower our communities to thrive.
Highlights
Educational initiatives: STEM Talent Pipeline
CITGO committed more than $1 million to 30 schools and educational organizations, encouraging students to pursue STEM careers. The program supports 12 CITGO Innovation Academies, reaching more than 20,000 students and educators.
COVID-19 and Health
Through a partnership with Baylor College of Medicine, CITGO donated $60,000 to purchase and deliver more than 3,000 hot meals to health care workers in the Harris Health System in Houston, Texas to support these workers during the struggles they faced during the pandemic.
Charitable Giving and Volunteering
- Raised more than $700,000 with 61 sponsors at the 35th annual Corporate Golf Challenge benefiting the Muscular Dystrophy Association to support families living with muscular dystrophy, ALS and related neuromuscular diseases.
- Raised $5MM for MDA over the year.
- In Lemont, employees raised almost $184,000 in support of 37 partner agencies in the United Way Campaign, which engaged more than 570 employees.
- Employees volunteered more than 1,600 hours to local community organizations and donated nearly $120,000, including CITGO matching funds.
Disaster Relief and Resilience
- Winter Storm Uri: Contributed $413,500 to disaster relief, including $226,000 to support several organizations responding to the emergency such as SBP, Metro Ministries, RTH and Independence Heights.
- Worked with community partners to help meet ongoing needs for food and water and medium- to long-term assistance for home repair in Houston, Corpus Christi and Lake Charles.
- Supported employees through the CITGO Stands Together Fund, a need-based financial assistance program funded with donations made by CITGO employees, contractors, retirees and community partners.
- Participated in several volunteering events supporting recovery efforts.
- Partnered with The Gulf of Mexico Gulf Star Program Alliance to support work in Galveston Bay, Texas that will improve conservation efforts for diamondback terrapins, a small species of turtle that lives in coastal marshes.
- Concluded a three-year Fueling Good, Rebuilding Lives charitable partnership with Rebuilding Together Houston, a program launched to help Houston-area communities recover from Hurricane Harvey. The initiative renovated more than 186 homes in the Independence Heights community and surrounding areas.
- Through a partnership with the Marine Spill Response Corporation (MSRC), CITGO helped rescue thousands of cold-stunned and paralyzed green sea turtles from coastal waters around southeast Texas during the days following Winter Strom Uri.
Caring for Our Coast Program (CFOC)
Originally launched in 2014, our Caring for Our Coast (CFOC) Program is an ongoing, large-scale effort to protect vulnerable coastal and inland habitats through education and volunteerism.
In 2021, CFOC awarded nearly $500,000 to 11 environmental organizations including: Artist Boat, Coastal Bend Bays & Estuaries Program, The Conservation Foundation, Galveston Bay Foundation, Houston Audubon Society, National Recreation and Park Association, Restore America’s Estuaries and The Nature Conservancy.
- Planted more than 74,000 trees, grasses and shrubs; collected nearly 30,000 pounds of trash; restored 1,460 acres; and engaged more than 1,800 volunteers in 166 events.
Simon Bolívar Foundation
In 2021 the Foundation committed $3.4 million to help more than 100,000 people in need through humanitarian health grants and knowledge transfer grants. Funds supported the following initiatives:
- Projects to help improve the health conditions of the Venezuelan diaspora in Colombia.
- Community Support in Venezuela.
- Johns Hopkins Center for Humanitarian Health Study on Venezuela’s Health Crisis. Findings help guide humanitarian health programming and provide updated, objective and reliable data on the Venezuelan health sector.
- Seven scholarships for medical professionals in Venezuela for Tropical Medicine diploma from Baylor's National School of Tropical Medicine.
Governance
Improvements in our Ethics & Compliance Program continued with the appointment of the first dedicated Ethics & Compliance Officer in the history of CITGO, launching the CITGO Code of Business Conduct and Ethics on CITGO.com and deploying a new associated training module, issuing the Company’s Investigations Committee Charter, and developing an employee engagement survey for launch in early 2022.
Additionally, we made progress with the internal control implementation enhancement initiative in 2021. We continue to provide training to our employees, from both internal and external sources, to further develop and refine our internal control environment. [In 2022, we continue these activities, and we expect to complete our current initiative in early 2023].
The Simón Bolívar Foundation changed its mission to help address the Venezuelan humanitarian crisis and to significantly expand its impact in Venezuela and the Americas region
