Marking the beginning of a new chapter of increased corporate transparency, responsibility and accountability, CITGO Petroleum Corporation (CITGO) published today for the first time in its history a report detailing the company’s broad environmental, social and corporate governance initiatives (known as an ESG report). The information contained in this release shows highlighted in the report the most important aspects of the company’s progress in 2019, as well as certain elements of the progress in ESG in 2020.
The new report, called A Clear Direction for the Future, represents a significant change from the company’s previous approach to its corporate responsibility reporting, with a greater emphasis on ethics, corporate governance and accountability.
A Clear Direction to the Future positions CITGO among a growing number of forward-thinking companies that decided to periodically publish ESG reports as a more complete and transparent method of reporting sustainability and social impact metrics to a larger group of audiences.
“CITGO has never been so committed to our fundamental values of caring for the environment, integrity, respect, justice, social responsibility, operational availability and competitiveness,” said Carlos Jordá, CITGO Executive President. “This report illustrates all those CITGO values in full operation.”
The Chief Executive Officer noted improvement in corporate governance as an area of particular emphasis. “When CITGO’s Board of Directors was appointed in 2019, one of its main objectives was to review and strengthen corporate governance,” said Jordá, “We are particularly proud of the significant progress we have made in instilling good corporate governance practices throughout the company.”
The highlights of the A Clear Direction Towards the Future report are:
Environmental performance data detailing reductions of 96% and 65% respectively in emissions of SO2 (sulfur dioxide) and NOx (nitrous oxides) between 2004 and 2019, as well as a considerable reduction in the use of water by the company in its three refineries.
The first statement in the history of the company referring to climate change, including its support for legislation aimed at curbing greenhouse gases.
The extraordinary rehabilitation and restoration of the 350 acres of Petty Island in New Jersey, which was once the headquarters of a CITGO terminal, turning it into a reserve for urban wildlife and a destination for environmental education and ecotourism .
A comprehensive and detailed description of the steps that have been taken to improve corporate governance, internal controls, and ethics and regulatory compliance since the appointment of CITGO’s new Board of Directors in 2019, including:
Appointment of CITGO’s first Director of Ethics and Compliance, who reports directly to the Executive President and to the audit committee of the Board of Directors.
A corporate integrity hotline, where anyone, including business partners, can report, confidentially and without fear of retaliation, ethical and compliance concerns.
The creation of a new and revised Code of Ethics for the company, outlining the responsibilities of all CITGO employees, officers, contractors, business partners, suppliers, and third-party representatives.
The establishment of six ethics and compliance teams throughout the organization, including supply and marketing, shared services, finance, and each of the company’s three refineries.
Strengthening of key committees on the CITGO Board of Directors, including Ethics, Regulatory Compliance and Auditing and Marketing to improve the identification of potential risks and advise on strategic development efforts.
Regular employee training on the “Foreign Corrupt Practices Act” (FPCA) as well as relevant training on ethics and regulatory compliance for employees specifically or generally.
Data on the company’s leadership in diversity and gender equality, reflecting 37% representation of minorities and 36% representation of women at the professional level, and several women occupying key leadership roles at the executive level, including the Auditor General and the former President of the Board of Directors.
Metrics that demonstrate outstanding performance in workplace safety, with an incident rate below the refining industry average every year since 2015.
The numerous national awards CITGO has recently earned, including the EPA ENERGY STAR designation, the AFPM Elite Gold Safety Award, the ILTA Safety Excellence Award, and the API Distinguished Pipeline Safety Award, to name a few.
Details on the firm commitment of the company to attend through the Simón Bolívar Foundation, CITGO’s private non-profit 501 (c) (3) organization, the immediate and long-term health needs of vulnerable people within and outside of Venezuela, in the midst of the complex humanitarian crisis that the country is experiencing.
Examples of the company’s ongoing commitment to corporate social responsibility include:
Major efforts to help communities severely affected by Hurricane Harvey, including working with the NGO Coastal Bend Food Banks to establish mobile food pantries in Houston and Corpus Christi,
Long-standing contributions to the community through CITGO’s Innovation Academies,
Efforts of volunteers employed by CITGO through TeamCITGO,
Contributions through organizations such as The United Way and Rebuilding Together, and
CITGO collaboration, for several decades, with the Muscular Dystrophy Association (MDA for its acronym in English)
“Since the new Board of Directors and the new management team took over the reins of CITGO in 2019, we have focused on institutionalizing the best corporate practices in both CITGO and the Simón Bolívar Foundation, as well as raising the importance of diversity and inclusion.’ Said the ex-President and current member of the Board of Directors, Luisa Palacios. “The results are evident, showing a more socially responsible company that aims to be an outstanding corporate citizen, prioritizes integrity and transparency, and is driving progress in the area of diversity with the appointment of several women in key roles within corporate leadership for the first time in the history of the company.”
CITGO emphasized that this increased focus on transparency and accountability to a broad set of stakeholders, incorporated in the inaugural launch of A Clear Direction for the Future, will now be an ongoing corporate priority. “We will continue working to protect our people, communities and our planet, through actions that are guided by good judgment and a strong adherence to our corporate code of ethics, and we will transparently report our progress,” said the President Executive, Carlos Jordá, “It is what we are.”
To see the report, click on the link: https://www.citgo.com/social-
Headquartered in Houston, Texas, CITGO Petroleum Corporation is a recognized leader in the refining industry with a well-known brand name. CITGO operates three refineries located in Corpus Christi, Texas; Lake Charles, Louisiana; and Lemont, Illinois, and is the total and/or partial owner of 42 terminals, six multiple pipelines and three lubricant mixing and packaging plants. With approximately 3,300 employees and a combined crude capacity of approximately 769,000 barrels per day (bpd), CITGO is ranked as the sixth independent complex refining company in the United States. CITGO transports and markets transportation fuels, lubricants, petrochemicals and other industrial products, and supplies products to a network of approximately 4,500 locally owned service stations operating under the brand name located east of the Rocky Mountains. CITGO Petroleum Corporation is owned by CITGO Holding, Inc.
Certain information included in this press release and in the ESG report may be considered “forward-looking statements” under applicable financial assurances and other laws that involve risks and uncertainties. These statements relate, among other things, to expectations regarding our industry, business strategy, objectives and expectations regarding our environmental, social and governance initiatives and our market position and future operations or performance. We have used the words “anticipate”, “believe”, “could”, “estimate”, “expect”, “pretend”, “can”, “plan”, “predict”, “project”, “will”, “would ”And similar terms and phrases to identify forward-looking statements, that only speak as from the date of this release.
Any forward-looking statements are not guarantees of future events and are subject to risks and uncertainties that could cause actual events, developments and business decisions to differ materially from those contemplated in these forward-looking statements. These statements are based on assumptions and evaluations made by our management in light of its experience and its perception of historical trends, current conditions (including current market conditions), expected future developments, and other factors deemed appropriate. Although we believe that the assumptions on which these forward-looking statements are based are reasonable, any of these assumptions could be inaccurate, and the forward-looking statements based on these assumptions could be incorrect. In addition, our business and operations involve numerous risks and uncertainties, many of which are beyond our control, which could result in our expectations not being met or otherwise materially affecting our financial condition, results of operations and cash flow. We caution readers that these forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially from projected results, expressed or implied. These risks and uncertainties include, but are not limited to, risks related to the effects of the ongoing COVID-19 pandemic, general economic activity, developments in the international and domestic oil markets, and refinery operations and changes. Readers are cautioned not to place undue reliance on these forward-looking statements.
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