2020 Global Sustainability Plan

Transcription

1 00 Global Sustainability Plan

2 The Global Sustainability Plan establishes 8 objectives to 00, articulated around our axes of the Sustainbility Model. Each axis contains the following information. Our ambition: We define what is the vision for each of the issues that Repsol considers relevant in terms of sustainability. 00 Objectives: We set objectives and indicate the degree of progress to date. Monitoring of 07 lines of Action: We show the status of the actions at the end of the year. Lines of action 08: We define the actions to be carried out during this year.

3 Sustainability Model Ethics and transparency People Safe operation We act responsibly and with integrity wherever we operate We are committed to people and promote their development and social environment We guarantee the safety of our employees, contractors, partners, and the local community The Global Sustainability Plan focuses on the six axes of Repsol's Sustainability Model Environment We consume the resources needed to generate power more efficiently and with the least possible impact Climate change We want to be part of the solution to climate change Innovation and technology We encourage innovation and incorporate technological advances to improve and develop ourselves and our environment

4 Global Sustainability Plan Our ambition No cases of corruption in the activities carried out by the Repsol Group. 00 Objectives Progress Inform all Repsol employees of what is expected of them in terms of prevention and the fight against corruption, as well as the mechanisms the Company places at everyone's disposal to find out more information about or report possible breaches of the Code of Ethics and Business Conduct and the Crime Prevention Model. 60% Ethics and transparency Develop and implement a global management model that will guarantee possible cases of corruption are prevented and detected early. 0% Anti-corruption More information about anti-corruption at repsol.com

5 Monitoring of 07 lines of Action Implement and develop legal compliance models that are adapted to local regulations in seven countries: Spain, Colombia, Canada, US, Russia, Italy, and Peru. Create action guidelines for the Code of Ethics and Business Conduct. Have a global Ethics and Business Conduct training program. Status * Lines of action 08 Implement a formal due diligence process for third parties in terms of Ethics and Business Conduct. Continue expanding the Compliance function to other countries, implementing compliance models adapted to local regulations in priority locations. Approve and disseminate anti-corruption action guidelines. Ethics and transparency Anti-corruption Anti-corruption * In progress (started but not completed)

6 Global Sustainability Plan Our ambition Achieve maximum national and international standards in terms of Good Governance. 00 Objectives Progress Ensure that women occupy 0% of the seats on the Board of Directors. 4% Ethics and transparency Anti-corruption Good governance practices More information about corporate governance at repsol.com

7 Monitoring of 07 lines of Action Status Incorporate shares as a form of payment of part of the Executive Directors' variable compensation. Search for and include women among the potential candidates to fill vacancies for Independent Directors on the Board of Directors. Lines of action 08 Adapt the operation of the Audit and Control Committee to the action guidelines established in the CNMV (National Securities Market Commission), with a special focus on the diversity criteria included therein. Ethics and transparency Anti-corruption Search for and include women among the potential candidates to fill vacancies for Independent Directors on the Board of Directors. Good governance practices

8 Global Sustainability Plan Our ambition Be publicly recognized as an honest and transparent company in tax-related matters. 00 Objectives Ensure our Company does not operate in tax havens (except in unavoidable and legitimate business-related circumstances) and simplify the corporate structure. Progress 00% * Be rated as a "transparent" and "responsible" company by the organizations that carry out assessments, thanks to the publication of information of our tax policies and practices along with our tax contribution in the countries where we operate. Promote cooperative relationships with tax authorities and search for amicable solutions in financial disputes. 00% 65% * Ethics and transparency Anti-corruption Responsible tax policy * Percentage of progress conditioned to annual revision More information about responsible tax policy at repsol.com

9 Monitoring of 07 lines of Action Review the corporate structure, paying special attention to legacy Talisman and complying with OECD and EU standards. Status Create the "Responsible tax policy" section on the Repsol website. Publish an annual tax contribution report for the Group. Be rated as a "transparent" or "responsible" company by Oxfam, the Observatory of Corporate Social Responsibility (ORSC), and the Commitment and Transparency Foundation (FCyT). Submit a voluntary transparency report to the AEAT (Spanish Tax Agency). Voluntarily participate in the OECD's pilot program to promote cooperative relationships with the tax authorities, the International Compliance Assurance Programme (ICAP). Reach agreements on disputed points with the tax authorities. Lines of action 08 Analyze our corporate structure taking into account the new of tax haven lists published by the OECD and EU in 07 and suggest how it can be adapted accordingly. Actively participate in work groups to define good tax governance principles and commitments and ensure the Repsol Group adheres to them, when appropriate. Present information to the AEAT from the 07 voluntary transparency report. Set up cooperative compliance programs with tax agencies relevant to the Group (e.g Canada) Ethics and transparency Anti-corruption Responsible tax policy *ICAP: an initiative for international cooperation between tax agencies that aims to determine the level of tax risk for large multinational organizations looking for certainty, mainly in the area of transfer pricing.

10 Global Sustainability Plan Our ambition To achieve and maintain strong relationships with communities where the company has presence, based on recognition, trust, mutual respect and shared-value, through proactive engagement and responsible and transparent management of social impacts and opportunities. 00 Objectives Make progress in terms of applying the United Nations Guiding Principles on Business and Human Rights in the Company: Ensure that all assets with the highest human rights criticality plan social risk and impact management, as well as their contribution to local socioeconomic development. Progress 5% People Ensure that all assets with the highest human rights criticality have implemented effective grievance mechanisms. 5% Human Rights and communities More information about communities at repsol.com

11 Monitoring of 07 lines of action Establish the social baseline in the assets of critical-level countries. Consolidate the network of Community Relations professionals. Status Ensure the roll-out of the Community Relations and Human Rights framework. Lines of action 08 Review the utility of the grievance mechanisms of Repsol operated assets with the highest levels of social criticality, in accordance with th United Nations Guiding Principles on Business and Human Rights. Establish action plans in accordance with the social risk baseline in those Company assets with the highest levels of social criticality. Consolidate the network of professionals responsible for community relations in the different countries and centers, developing their skills and facilitating communication and the transfer of knowledge and experience. People Human Rights and communities

12 Global Sustainability Plan Our ambition Guarantee people's security with full respect for human rights. 00 Objectives Progress Reach the highest level of best practice according to the Voluntary Principles on Security and Human Rights (VPSHR)*, by carrying out all the actions defined in the VPSHR Implementation Plan in countries identified as priority. (*) VPSHR: Multi-actor initiative involving governments, companies, and NGOs that promotes the implementation of a series of guiding principles for hydrocarbon and mining companies to provide security in their operations in a way that is respectful of human rights. 0% People Security and Human rights More information about human rights at repsol.com

13 Monitoring of 07 lines of action Carry out a risk analysis related to security and human rights in the five highest priority countries. Identify the most relevant stakeholders in this area. Status Lines of action 08 Consolidate and expand the best practices identified in the countries where we operate. People Security and human rights

14 Global Sustainability Plan Our ambition Make a commitment to people and drive their development and that of their social context. Guarantee equal opportunities as a distinctive element of an integrated, diverse and inclusive company. 00 Objectives Progress Increase the proportion of women in leadership positions to 0%. 95% Exceed legal obligations in relation to the direct integration of people with disabilities into our workforce in countries where this applies. 80% People Improve employee satisfaction rate regarding access to flexibility and work-life balance programs in the climate survey to 70% positive responses. 95% Diversity, work-life balance, climate and talent retention More information about employees at repsol.com

15 Monitoring of 07 lines of action Status 4 5 Relaunch of the Diversity and Work-Life Balance Committee Evaluate whether gender diversity can be found throughout Repsol's value chain and design an improvement action plan. Establish a global diversity map in the Company. Foster the integration of people with disabilities into our workforce. Promote tools that facilitate work-life balance and review work-life balance minimums worldwide. Lines of action 08 Diversity and Work-Life Balance Committee: Approve the strategic lines of action in each of the dimensions and identify which projects are to be developed. People 4 Gender and Equality: Raise awareness within the organization of the need to identify unconscious gender bias and use gender neutral language. Encourage the direct employment of people with disabilities. Strengthen our position in Europe and Latin America by forming part of international networks. Promote tools that facilitate work-life balance. Diversity, work-life balance, climate and talent retention

16 Global Sustainability Plan Our ambition Zero accidents 00 Objectives Progress Personal accident rate: comply with the path defined in 0 (calculated based on the rates of the best-performing companies in the sector) that sets an annual target value for the Total Recordable Incident Rate (TRIR) until 00. Process accident rate: comply with the path defined in 05 (calculated based on the rates of the best-performing companies in the sector), which sets an annual target value for the Process Safety Incident Rate (PSIR) until % 40% People Safe operation Diversity, work-life balance, and talent retention More information about safety at repsol.com

17 Monitoring of 07 lines of action Revise and update the SE (Safety and Environment) regulatory framework. Comply with the SMArt Keys preemptive safety program to prevent major industrial incidents. Improve critical processes by revising incident management and lessons learned. Status * Lines of action 08 4 Comply with the Company's 08 preemptive safety program, SMArt Keys, aimed at preventing major industrial incidents, which has three focal points: people, processes, and plants. Improve the quality of our incident investigations by further professionalizing the role of investigator with differentiated training. Make headway with the implementation of the Company's Crisis Plan by carrying out a crisis management drill exercise in the Downstream area. Publish the White Paper on Safety Culture. People Safe operation Diversity, work-life balance, and talent retention * In progress (started but not completed)

18 Global Sustainability Plan Our ambition Neutral environmental impact of natural resource management. 00 Objectives Progress Implement Circular Economy projects that will have a positive impact on both society and the Company in all business units. 68% Minimize the amount of waste produced and improve the management thereof. 6% Environment People Safe operation Develop initiatives that optimize the use of water and reduce the impact of effluent. 85% Diversity, work-life balance, Risk, incident, and talent and retention emergency management More information about environment at repsol.com

19 Monitoring of 07 lines of action Define and implement the actions included in the 07 Water Plan for the Refining, Chemicals, and E&P businesses Status Generate the Circular Economy Initiatives catalog and implement circular projects. Define and implement the 07 Waste Working Plan for E&P, Refining, Chemicals, LASP (Lubricants, Asphalts, and Specialized Products), and Service Stations. 4 5 Lines of action 08 Identify and promote circular economy projects in the various business units. Prepare the White Paper on Water in Downstream operations with a view to improving water management at our facilities. Minimize the amount of waste sent to landfill in the Refining and Chemicals business units. Use life-cycle assessment and ecodesign processes in projects launched in Downstream. Develop a new digital tool for management, decision making, and environmental reporting in E&P. Environment People Safe operation Diversity, work-life balance, Risk, incident, and talent and retention emergency management E&P : Exploration and Production

20 Global Sustainability Plan Our ambition Position ourselves in a scenario compatible with the Paris Agreement ( C scenario). 00 Objectives Progress Reduce CO eq emissions by.9 Million metric tons (04-00). This includes the Climate Clean Air Coalition (CCAC) methane emissions mitigation plan. 70% Climate change More information about climate change at repsol.com

21 Monitoring of 07 lines of action Develop methane and flare gas inventories in accordance with the CCAC and Zero Routine Flaring (ZRF) 00 initiatives, respectively Status Implement the 07 Carbon and Energy Plan: Reduce the Company's CO emissions by 6,000 metric tons, verifiable under ISO 4064, and define the emission reduction opportunities catalog in E&P (North America, Bolivia, Ecuador, and Malaysia). Lines of action 08 Incorporate climate change into the Company's strategy and prepare the corresponding report, as well as report on the financial risks associated with climate change in accordance with the Task Force on Climate-related Financial Disclosures (TCFD). Implement the 08 Carbon and Energy Plan: Reduce the Company's CO emissions by metric tons, verifiable under ISO Climate change

22 Global Sustainability Plan Our ambition Drive technological innovation as a lever of transformation towards more sustainable business models Monitoring of 07 lines of action Analyze the technology and venture capital project portfolio and construct a crosscompany sustainability project portfolio based on the following axes defined in the Sustainability Model: climate change, environment, and safe operation. Estado Define monitoring metrics and propose long-term objectives. Lines of action 08 Monitor the baseline for investment in technological development and start-ups included in the Sustainability Model axes. Reach the milestones of projects aligned with the sustainability axes. Promote our model for open innovation and technological development in our sector. Innovation and technology More information about energy and innovation at repsol.com

23 How does our Plan contribute to the Sustainable Development Goals (SDG)?

24 SDG linked to this Plan SDG Ethics and transparency No cases of corruption in the activities carried out by the Repsol Group. Achieve maximum national and international standards in terms of Good Governance Be publicly recognized as an honest and transparent company in tax-related matters. People To achieve and maintain strong relationships with communities where the company has presence Guarantee people's security with full respect for human rights. Make a commitment to people and drive their development and that of their social context. Guarantee equal opportunities as an element that sets us apart as an integrated, diverse, and inclusive company. Safe operation Zero accidents. Environment Neutral environmental impact of natural resource management. Climate change Position ourselves in a scenario compatible with the Paris Agreement ( C scenario) Innovation and technology Drive technological innovation as a lever of transformation towards more sustainable business models 4

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