Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable production
• Climate action
• People
• Shared social value

Environmental Achievements

• Reduced direct GHG emissions by 10% compared to 2019
• Achieved 21% of electrical energy purchased for consumption from renewable sources, exceeding the 2025 target
• Reduced water consumption by 8.9% compared to 2019
• Reduced waste generation by 51.5% compared to 2019

Social Achievements

• Increased female representation in executive and managerial positions by 1.1% to 15.4%
• Launched several employability programs for vulnerable social groups
• Maintained a downward trend in accident frequency rate, reaching 0.20 in 2020
• Implemented several initiatives to support communities during the COVID-19 pandemic

Governance Achievements

• Renewed YPF's Ethics Code of Conduct
• Strengthened the Integrity Program
• Improved position in the Dow Jones Sustainability Index
• Participated in EITI’s Country Report

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacted demand and operations
• Economic difficulties due to the pandemic
• Decline in hydrocarbon production levels
• Climate change risks and energy transition challenges

Mitigation Strategies

• Implemented cost reduction plan
• Proactive debt management
• Developed unconventional assets in Vaca Muerta
• Launched new electric power projects through YPF LUZ
• Defined current and future business lines to manage climate change risks
• Implemented GHG emission reduction goals and actions
• Invested in new refining technologies

Supply Chain Management

Supplier Audits: 1,355 suppliers assessed, 4,289 assessments to 1,978 contracts

Responsible Procurement

• Inclusion of ethical, environmental, and social requirements in purchasing and contracting agreements
• Implementation of Responsible Inclusive Purchases (RIP) initiative

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Water shortages

Transition Risks

• Regulatory changes
• Market shifts
• Carbon taxes

Opportunities

• Development of energy-efficient products
• Growth in electricity and renewable energy generation
• Opportunities in hydrogen and lithium businesses

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: OHSAS 18001, ISO 14001, ISO 9001

Third-party Assurance: Deloitte & CO S.A.

UN Sustainable Development Goals

• SDG 7
• SDG 13
• SDG 8
• SDG 9
• SDG 12

YPF's sustainability strategy supports the SDGs by boosting socio-economic development, creating economic value and employment opportunities, investing in renewable energy, and managing environmental and social risks.

Sustainable Products & Innovation

• Lower sulfur fuels
• Biofuels
• LNG

Awards & Recognition

• People Award for employability programs
• Honorable Mention of the IAPG Award for people management
• Bronze distinction in the WEPs Argentina 2020/2021 “Companies for them” Award
• One of the ten best “Digital platforms during COVID 19” by CIPPEC, IDB LAB and the Ministry of Productive Development of the Nation

Environmental Metrics

ESG Focus Areas

• People
• Shared Social Value
• Sustainable Production
• Climate Action
• Governance
• Partnerships

Environmental Achievements

• Reduced GHG Direct emissions intensity (tCO2e/unit produced) to 0.57 from 0.49 in 2021
• Achieved 82% of Waste Reused + Recycled/ Total non-hazardous waste
• 23% of total electrical energy consumption from renewable energy at CIE
• ISO 50001:2018 Energy Management System certification at CIPH
• Reduced methanol storage costs in third-party facilities by USD 3 million

Social Achievements

• Launched Leadership Program for Executives
• Implemented a flexible hybrid working model
• Exceeded the goal of 25% of women in leadership positions (27% in executive and managerial positions, 55% in positions with staff in charge)
• Oversaw 8,000+ visitors at the Energy Space, promoting education, innovation, and technology
• Conducted a tree planting volunteer program with 20 volunteers planting 100 jacarandas

Governance Achievements

• Developed and approved a new Human Rights and Relationship with the Community Policy
• 100% of direct employees adhered to the Code of Ethics and Conduct
• Participated in the annual event #ModoCompliance2022, renewing the commitment to integrity

Climate Goals & Targets

Environmental Challenges

• Market dynamics changed due to the war in Europe, inflation, cost increases, low availability, and high logistic costs
• Water emergency in Neuquén Province impacting Methanol Plant operations
• Increase in scope 1 emissions due to the inclusion of the CLAB plant

Mitigation Strategies

• Assessed alternatives to maintain business profitability, focusing on regional markets
• Developed actions to detect and implement projects to reduce freshwater uptake
• Developed decarbonization plan on Scope 1 and 2 GHG emissions

Supply Chain Management

Responsible Procurement

• Rigorous selection process ensuring compliance with regulations on technical, tax, legal, labor, social security, ethical, environmental, and social aspects

Climate-Related Risks & Opportunities

Physical Risks

• extreme weather events on operations and assets

Transition Risks

• decarbonization and energy transition trends, market and demand changes, new regulations and carbon taxes, new technologies, changes in customer portfolio preferences

Opportunities

• development of new businesses and low-carbon solutions

Reporting Standards

Frameworks Used: GRI, SASB

Certifications: ISO 14001, ISO 50001, ISO 45001, ISO 14064, ISO 9001, PCRMA®

UN Sustainable Development Goals

• 4
• 5
• 8
• 11
• 12
• 16
• 17

Aligned with YPF's priorities and material topics

Sustainable Products & Innovation

• Products with lower carbon footprint; Normal Pentane 80/20 mix for EPS production

Environmental Metrics

ESG Focus Areas

• Climate Action
• Sustainable Production
• People
• Shared Social Value

Environmental Achievements

• Reduced Scope 2 emissions at CIE due to reduced electric power consumption during scheduled shutdowns.
• Achieved 27.1% renewable electric power consumption versus total electric power consumption at CIE, exceeding the 18% legally required.
• Decreased hazardous waste generation by 23% at CIE due to several factors including sending mud from effluent pools to biotreatment and plant stoppages.
• Increased recovered scrap by 53% through an agreement with Tenaris.

Social Achievements

• Reached 33% women in managerial and executive positions, exceeding the company goal.
• 100% of claims from customers were addressed and closed.
• 94% compliance with health examinations in Chemistry.
• Implemented employability programs for different social groups in vulnerable situations, achieving a 70% average formal labor market insertion rate.

Governance Achievements

• Received double mention in Argentina's 2023 National Quality Prize for Process Management and Social Responsibility Management.
• Updated and approved the Code of Ethics and Conduct by the Board of Directors, incorporating the principle of respect for human rights and adding sections on bribery, conflicts of interest, and competition defense.

Climate Goals & Targets

Environmental Challenges

• Global oversupply of petrochemical products challenged foreign trade, with competition from Asia.
• Complications in the Panama Canal due to drought delayed travel and complicated the offer.
• Water emergency in the Province of Neuquén impacted Methanol Plant's water management.
• High temperatures, failures in installation integrity, and reliability problems in instruments affected Methanol's water consumption intensity.

Mitigation Strategies

• Developed alternative sourcing strategies.
• Implemented a comprehensive reconversion plan for the effluent system at CIE.
• Improved processes that use water, effluent treatments, and implemented a maintenance and integrity plan to avoid breaks and losses in plumbing infrastructure.
• Established internal water prices using the Water Risk Monetizer tool for sensitivity analyses of critical investment projects.

Supply Chain Management

Responsible Procurement

• Rigorous selection process ensuring compliance with regulations and ethical, environmental, and social requirements.
• Incorporation of ESG actions of suppliers into bidding specifications matrix.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events impacting operations and assets.

Transition Risks

• Market and demand changes for products; new regulations and carbon taxes; new technologies; changes in customer portfolio preferences.

Opportunities

• Development of new chemical products related to Upstream and Downstream activities; chemical recycling projects linked to the circularity of plastics; decarbonization projects.

Reporting Standards

Frameworks Used: GRI, SASB

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 14064, ISO 50001, PCRMA®

UN Sustainable Development Goals

• SDG 4
• SDG 5
• SDG 7
• SDG 8
• SDG 11
• SDG 12
• SDG 13
• SDG 16
• SDG 17

Initiatives contribute to these goals through various programs and actions related to education, gender equality, energy efficiency, decent work, sustainable cities, responsible consumption, climate action, peace, justice, and partnerships.

Sustainable Products & Innovation

• Normal Pentane 80/20; Oilfield Chemicals.

Awards & Recognition

• Double mention in Argentina's 2023 National Quality Prize