102 Linkage of Executive Compensation and ESG and Climate Change Metrics Annual Bonus Plan Valero has historically included health, safety and environmental (HSE) performance measures as part of the metrics of its annual bonus program. In 2020, the Human Resources and Compensation Committee approved a modification to our annual bonus program to also include ESG efforts and improvements, which contain multiple objectives. Operational Component , includes a HSE component weighted at 13.33%. Strategic Component , weighted at 20%, includes: • ESG efforts and improvements (sustainability, environmental stewardship, diversity and inclusion, compliance and corporate citizenship/community). • Operational excellence (execution of capital projects, margin improvement and market expansion, and cost management and expense control). • Disciplined use of capital (balanced utilization of sustaining and growth capital vs. target). • Organizational excellence (innovation, public policy and leadership development). • Returns to stockholders (return cash to stockholders through dividends and stock buybacks). Long-term Incentive Program In 2021, our Human Resources and Compensation Committee strengthened the ties between executive compensation and ESG priorities through the addition of an energy transition modifier to our long-term incentive program, tying executive compensation with our publicly disclosed GHG emissions reduction/displacement target for 2025 and the deployment of capital to low-carbon projects and initiatives.