Senior managing counsel | Valero Perú
Juan Chacón Santos
Senior managing counsel | Valero Perú
Team size: Six
How do you approach managing legal aspects during periods of instability or crises, and how does your legal strategy align with the broader business strategy to ensure the organisation’s resilience?
I believe that it is extremely important for every company to have a crisis management plan. A crisis management plan describes how the company will react to a crisis and identifies what their roles will be. The goal is to minimise negative effects and restore business operations as soon as possible. The collaboration of the in-house lawyer for the management of the crisis management plan is fundamental since they are the ones who know perfectly what we can do within the remit of the law. There is no way to know what type of crisis may occur and when, but with risk analysis, you will have a general idea of the threats that could affect the organisation.
The way in which we align the legal strategy with the commercial strategy to guarantee the resilience of the organisation is by always acting as direct advisors to senior management. This means knowing all the projects, decisions, alternatives, possibilities, and, in general, all the potential actions that the company wants to carry out. This approach allows us to provide adequate advice and develop a solid and clear action plan in the face of a crisis, both before, during, and after it occurs.
What measures has your company taken to embed sustainability practices into its core business operations, and how does the role of the general counsel contribute to driving and ensuring sustainable practices within the company?
The world requires reliable, affordable and sustainable energy, and we see this as an opportunity. We are committed to advancing the future of energy through innovation, ingenuity and unmatched execution. Today, Valero is the leader in the production of low-carbon liquid transportation fuels because of strategic actions taken more than a decade ago. Since 2009, we have been deploying capital to grow our low-carbon fuels businesses. Growth in terms of volume and lower carbon intensity fuels offerings have a direct impact on global GHG emissions reductions, as these low-carbon fuels substitute for and displace higher carbon-emitting petroleum fuels. We have invested more than US$5.1bn to date in our low-carbon businesses, making us the world’s largest low-carbon transportation fuels producer. Low-carbon liquid fuels offer substantially lower GHG emissions, compared to petroleum-based fuels.
The general counsel contributes to this objective by raising awareness among our stakeholders about the importance of sustainability and the legal risks that the company would face if immediate measures were not taken to promote and integrate this practice into our culture.
How do you prioritise diversity and inclusion within your legal department, and what initiatives have you implemented to foster a more inclusive and equitable work environment?
We consider our employees a competitive advantage and our greatest asset. We foster a culture that supports diversity and inclusion, and we provide a safe, healthy, and rewarding work environment with opportunities for growth. We ensure equal opportunities for all applicants to promote the inclusion of women, minorities, and qualified individuals with disabilities.
Valero’s Code of Business Conduct and Ethics further outlines our expectations, including zero tolerance for workplace discrimination based on race, ethnicity, religion, sex, sexual orientation, disability, gender identification, age, or any status protected under applicable law, as well as harassment of any kind.
We have included clauses regarding respect for minorities in all our agreements with contractors, prohibiting all types of discrimination. Similarly, our workers receive training on diversity and inclusion to keep them aware of the importance of this social aspect.
Can you discuss a particularly challenging dispute or M&A scenario you encountered and the innovative strategies you implemented to address it?
At the end of 2013, we decided to implement a space for Government Affairs in the Legal area because we were convinced that maintaining a healthy and honest closeness with regulatory agencies would allow us to know first-hand what these authorities expected of us and how we could contribute to it. This was always with a view to achieving an adequate mechanism for social responsibility.
To achieve this objective, we sought the support of our colleagues in San Antonio, Texas, who are experts in government relations. Together, we developed a plan of visits, presentations, meetings, and exhibitions before the relevant authorities. Our aim was to familiarise them with our company and to communicate that, with us, they have a strategic partner in achieving a common purpose – the well-being of the end user and the community at large.
This effort lasted a year, and we saw very productive results. We had to learn the etiquette and formalities inherent in these types of meetings, as well as the agendas and other details. We did well in the presentations, and the legal department incorporated a lawyer dedicated to these matters into their roles.
Senior managing counsel | Valero Perú