Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Efficiency
• Renewable Energy
• Sustainable Mobility
• Social Responsibility
• Health and Safety
• Innovation
• Stakeholder Engagement

Environmental Achievements

• Significant improvement in refinery energy efficiency and GHG reduction through ongoing conversion projects (targeting 15% energy consumption reduction and ~400,000 tCO2/year reduction by 2012 compared to 2007).
• Introduction of ~176,000 m³ of biodiesel in the Portuguese market, contributing to GHG emission reduction of over 230,000 tCO2/year.
• Construction of a photovoltaic plant with an estimated annual production of ~156,000 kWh.

Social Achievements

• Launched Galp Voluntária program for employee volunteer work, with over 84% favorable response rate.
• Successfully collected goods to support Associação Ajuda de Berço.
• Implemented Missão UP educational project on energy efficiency and sustainable mobility, reaching 700,000 students.

Governance Achievements

• Adhesion to the Extractive Industries Transparency Initiative (EITI).
• Established a SHE governance model with clear responsibilities for safety, health, and environmental performance.
• Inclusion of a Safety Factor in employee compensation to reinforce commitment to SHE.

Climate Goals & Targets

Environmental Challenges

• Environmental licencing delays for Ventinveste wind projects.
• Difficulties in achieving consensus on fuel specifications due to technical issues and economic pressures.
• Adverse weather conditions impacting Jatropha Curcas Linn crop production in Mozambique.

Mitigation Strategies

• Ventinveste is studying alternative locations for wind farms.
• Galp Energia actively participates in CONCAWE and other committees to influence fuel specifications.
• Mozambique projects include food crop planting to mitigate the impact of adverse weather conditions.

Supply Chain Management

Responsible Procurement

• Suppliers are subject to a certification process before becoming suppliers.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3

Certifications: ISO 9001, ISO 14001, OHSAS 18001, NP 4397

Third-party Assurance: PricewaterhouseCoopers & Associados SROC, Lda.

Sustainable Products & Innovation

• Biofuels
• Galp GForce premium fuel

Awards & Recognition

• Third place in Best IR Professional in the European Oil & Gas sector.
• Awards for advertising campaign in Spain.

Environmental Metrics

ESG Focus Areas

• Environment, Health, and Safety (EHS)
• Ethics and Conduct
• Climate Change
• Stakeholder Engagement and Community Relations
• Human Capital
• Innovation

Environmental Achievements

• Reduced CO2 emissions per equivalent tonne of oil produced by 19.3% (from 212 kgCO2/toe in 2010 to 171 kgCO2/toe in 2011)
• Reduced energy intensity index (EII) in Matosinhos refinery by 5.8% and in Sines refinery by 8.2%
• Introduced 290,000 m3 of biodiesel in the Portuguese market, reducing CO2e by 300,000 tCO2e
• Introduced 250,000 m3 of bio substitutes in the Spanish market, reducing CO2e by 210,000 tCO2e
• First wind farm in Vale Grande, Arganil, began operations (12 MW)

Social Achievements

• Launched Galp Voluntária, a corporate volunteer program, with 385 volunteers contributing 2,532 hours
• Implemented HR policies in African subsidiaries, emphasizing predictability and transparency
• Increased employee satisfaction by 3% according to a climate survey
• Implemented a new corruption-fighting policy and a standard for government relations
• Renewed support for the Extractive Industries Transparency Initiative (EITI)

Governance Achievements

• Implemented a new corruption-fighting policy (NR-11/02)
• Established a new regulation for government relations (NR-05/11)
• Renewed support for the Extractive Industries Transparency Initiative (EITI)

Climate Goals & Targets

Environmental Challenges

• Fluctuations in commodity and product prices
• Fluctuations in exchange rates
• Taxes and tariffs
• Political and regulatory environment
• Climate change
• Project completion risks
• Reliance on third parties
• Environment, health, and safety risks
• Water use risks

Mitigation Strategies

• Designed policies and processes to monitor, measure, and manage risk exposure
• Implemented a risk management policy to assist business segments in achieving their goals
• Established a risk management committee and internal control system
• Regularly reappraised risks and internal control systems
• Developed a water management strategy to address water scarcity risks
• Implemented strict criteria regarding environmental protection, operational safety, and health in E&P projects

Supply Chain Management

Responsible Procurement

• Suppliers commit to comply with Galp Energia’s code of ethics and conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI3

Third-party Assurance: PricewaterhouseCoopers

Sustainable Products & Innovation

• Biofuels
• Energy-efficient solutions

Awards & Recognition

• Second place in Institutional Investor’s 2011 European Investor Relations Perception Study
• SAM’s Sector Mover award in Oil & Gas E&P
• Mention of honour in the 10th Dupont Safety Awards

Environmental Metrics

ESG Focus Areas

• Health, safety and environment (HSE)
• Ethical behavior
• Climate change
• Stakeholder engagement
• Human capital
• Innovation

Environmental Achievements

• Reduced CO2 emissions per tonne of oil equivalent produced by around 5%
• Achieved a cumulative reduction of 13% in Energy Intensity Index (EII) at Sines Refinery compared to 2008
• Achieved a cumulative reduction of 16% in EII at Matosinhos Refinery compared to 2008
• Avoided 450 tCO2 at 100 filling stations through energy efficiency measures
• Opened Enerfuel, the first national plant producing biofuel from animal fats, reducing CO2 emissions by over 80% compared to fossil alternatives

Social Achievements

• Lowest number of accidents resulting in work absence ever recorded
• Significant decrease in process safety events, well below the CONCAWE average
• Launched the “Energia Solidária” card to help solve general social problems
• Adhered to the UN Global Compact
• Launched the “Vida Ativa Vida Positiva” project to promote employee well-being

Governance Achievements

• Received AAA ranking in Corporate Governance
• Established a corporate policy for the protection of human rights
• Joined the UN Global Compact

Climate Goals & Targets

Environmental Challenges

• Increasing energy costs and their impact on customers’ budgets
• Process safety events (though significantly reduced)
• Economic crisis affecting employee perception

Mitigation Strategies

• Developed offers with advantageous conditions for customers (Galp On service)
• Implemented process safety improvements and published a Guide to Process Safety
• Conducted an organisational climate survey to identify improvement measures

Supply Chain Management

Responsible Procurement

• Review of regulatory standard for purchasing to promote ethics and continuous improvement
• Strengthening the audit process of key suppliers, ensuring compliance with sustainability requirements
• Review of procurement policy, reinforcing environmental and social concerns
• Use of Achilles system for pre-qualification questionnaires on social risks

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and services
• Production of biofuels

Reporting Standards

Frameworks Used: GRI3 (Level A+)

Certifications: ISO 14001, ISO 9001, OHSAS 18001, ISO 50001, ISO/IEC 17025

Third-party Assurance: PricewaterhouseCoopers

Sustainable Products & Innovation

• Biofuels (Enerfuel plant)
• LPG Auto

Awards & Recognition

• Western Europe Region - Energy Project of the Year (Corinthia Hotel Lisbon)
• First place in Portugal in the Investor Relations category at the 2013 Extel Pan-European awards
• AAA ranking in the report “Governo das Sociedades em Portugal 2013”,
• Energy Globe 2013 award for its Missão UP project
• Inclusion in the Climate Disclosure Leadership Index
• Inclusion in the Global 100 Most Sustainable Corporations in the World

Environmental Metrics

ESG Focus Areas

• Corporate governance
• Human Capital
• Health, Safety and Environment
• Development of local communities

Environmental Achievements

• Ranked on CDP's Climate A List for initiatives to reduce greenhouse gas emissions and manage climate change risks and opportunities.
• Maintained its status as leader in Iberia for greenhouse gas emissions reporting quality.
• Achieved a 29% decrease in gas flaring in operated blocks compared to the previous year.

Social Achievements

• Continued to invest in advanced training programs designed to meet the skill profiles required for the successful implementation of the Company strategy.
• Women represented 40% of total staff.
• Overall investment in community development was around €3.9m, with 51% allocated to social actions.

Governance Achievements

• Free float increased from 46.66% to 54.66% following the disposal by Eni S.p.A. of its remaining shareholding.
• Revised Code of Ethics and Conduct.
• Implemented a new procedure for communication of irregularities occurring in companies of the Group.

Climate Goals & Targets

Environmental Challenges

• Impact of marginal production costs on E&P profitability.
• Global gas market absorption of increased LNG production capacity.
• Excess installed capacity in the European refining sector.
• Balancing increased global energy demand with decarbonisation policies.

Mitigation Strategies

• Comprehensive analysis of factors driving marginal production costs to achieve sustainable return on assets.
• Active management of sourcing opportunities and presence in the spot market to address potential gas surplus.
• Integration of refining and marketing operations to improve competitiveness.
• Investment in innovation and technological development to manage the transition to a lower carbon economy.

Supply Chain Management

Responsible Procurement

• Rigorous selection of suppliers based on safety, health, environment, and corporate social responsibility criteria.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, CDP

Certifications: ISO 14001, ISO 9001, OHSAS 18001, ISO 50001, ISO/IEC 17025

Sustainable Products & Innovation

• Second-generation biodiesel

Awards & Recognition

• Dow Jones Sustainability Indices (DJSI)
• CDP Climate ‘A’ List and Climate Disclosure Leadership Index (CDLI)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Health

Social Achievements

• Maximizing local hiring wherever practicable and providing training to local staff

Climate Goals & Targets

Environmental Challenges

• Potential impacts to air quality, seawater quality, seabed and benthic communities, plankton, fish, sea turtles, marine mammals, seabirds, sensitive coastal areas, navigation, traffic, sea users, fisheries, local economy, employment and livelihoods, local infrastructures and services, and community and workers health and safety.

Mitigation Strategies

• Implementing mitigation measures to minimize or eliminate adverse impacts and enhance potential benefits.
• Adhering to STP legislation, GALP HSE policies, management system and procedures, international law and standards, and Oil & Gas industry best practices.
• Developing and implementing an Environmental and Social Management Plan (ESMP).

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ANP-STP 2015 guidelines, MARPOL 73/78, IOGP guidelines, IPIECA guidelines, JNCC guidelines, IMO guidelines, BWM Convention

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Defined new long-term goals to reduce carbon emissions and strengthen the pathway towards decarbonisation by 2030: reducing by 40% absolute emissions from operations (scope 1 and 2), reducing by 40% the production intensity (scope 1, 2 and 3), and reducing by 20% all downstream sales carbon intensity (scope 1, 2 and 3).
• Investments in biofuels, electric mobility, energy efficiency projects and renewable photovoltaic energy.

Social Achievements

• Implementation of the 2021 Equality Plan dedicated to implementing gender equality.
• Commitment to be an essential partner in the community where it exercises its activity, with the goal of promoting its social and economic development.

Governance Achievements

• Implementation of a Corruption Prevention Policy and a Prevention of Corruption Standard.
• Implementation of a Policy for the Prevention of Money Laundering and Terrorist Financing and a Prevention of Money Laundering and Terrorist Financing Standard.
• Establishment of an Ethics and Conduct Committee to monitor the implementation of the Code of Ethics and Conduct.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions (implied)
• Climate change related risks (implied)

Mitigation Strategies

• Developing alternative sourcing strategies (implied)
• Implementing various policies and standards to mitigate ESG risks.

Supply Chain Management

Supplier Audits: 308 counterparties assessed through in-company integrity audit systems in 2021.

Responsible Procurement

• Due diligence procedures regarding business and social partners, service providers and most relevant suppliers.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards version 2021, SASB for Oil and Gas, TCFD recommendations, UNGC principles, World Economic Forum metrics, Sustainable Development Goals, AA1000 AccountAbility Principles Standard (AA1000AP 2018)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Transition
• Social Responsibility
• Human Rights
• Safety
• Environment

Environmental Achievements

• Reducing absolute GHG emissions from its operations (scope 1 and 2) by 40%; and Reducing carbon intensity (scopes 1,2 and 3) of the produced energy according to production-based approach by 40% and of its sales portfolio by 20% following a downstream sales-based approach.

Social Achievements

• Not disclosed

Governance Achievements

• Adopted 44 of 45 applicable recommendations of the IPCG Corporate Governance Code.

Climate Goals & Targets

Environmental Challenges

• Inability to respond adequately and in a timely manner to climate change concerns
• Inability to develop, maintain or efficiently manage a high-value portfolio
• Failure to comply with industry laws, regulations and ESG disclosure
• Erosion of reputation
• Inability to respond adequately and in time to changes in the market
• Risks associated with partnerships
• Failure to identify and integrate technological developments
• Failure to develop capital-efficient investment strategy in renewable energy and new businesses
• Price volatility of oil products, natural gas, LNG, electricity and CO2
• Tightening conditions for financing and insurance coverage of Oil & Gas projects
• Increased global supply chain challenges
• Risk of major events involving fatalities and/or significant damage
• Inability to retain a client portfolio
• Failures in the efficiency and effectiveness of operations
• Failure to react effectively to crisis situations or disruptions
• Risks associated with project execution
• Legal and regulatory changes
• Non-compliance with economic and financial sanctions
• Cybersecurity risks
• Talent attraction and retention

Mitigation Strategies

• Strategy to purposefully and profitably accelerate the transition to net zero emissions
• Focus on opportunities that ensure a portfolio capable of creating long-term sustainable value
• Acting in accordance with all relevant standards, laws, and regulations
• Corporate culture guided by high ethical values and social responsibility standards
• Continually assessing markets and economic drivers
• Rigorous selection of partners and careful drafting of partnership agreements
• Strengthening data analytical capabilities and leveraging business know-how
• Continuously evaluating new investment options and carrying out stress tests
• Natural hedge from upstream and downstream businesses, hedging strategies and exposure limits
• Diversifying financing portfolio and expanding creditor pool
• Exploring and identifying alternative supply sources
• Standards and governance structure to manage HSSE risks
• Strategy based on key competitive advantages to ensure long-term customer loyalty
• Integrated Management System to identify and manage risks and opportunities
• Business Continuity Management System (BCMS)
• Feasibility studies, continuous monitoring, and partnership with experienced companies
• Proactively monitoring legislative framework
• Verifying information about third parties and including compliance clauses in contracts
• Cybersecurity and Cyber Resilience Capacities
• Focus on employee well-being and a new performance management model

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• ESG compliance due diligences on relevant business partners, service providers and suppliers

Climate-Related Risks & Opportunities

Physical Risks

• sea level rise, tornadoes, drought, heavy rains, floods, water scarcity, rise of average temperature

Transition Risks

• changes in consumer behaviour, reducing demand for Oil & Gas, large investments in structural technological changes, potential for anticipating losses in current assets’ value

Opportunities

• expansion of its renewable energy footprint, the development of biofuels and green hydrogen

Reporting Standards

Frameworks Used: TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• green hydrogen
• biofuels

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Decarbonization
• Biodiversity
• Water Stewardship
• Circular Economy
• People
• Communities
• Human Rights
• Safety
• Ethical Business Practices
• Cybersecurity
• Supply Chain Sustainability

Environmental Achievements

• Reduced operating emissions (equity) by 13% compared to the previous year and 30% lower compared to the 2017 baseline.
• Reduced carbon intensity of produced energy by 19% compared to the 2017 baseline and 6% year-on-year.
• Reduced carbon intensity of energy sold downstream by 4% from the baseline and 1% from the previous year.
• Avoided emission of approximately 1,500 ktonCO2e through the integration and sales of biofuels, electricity for electric mobility, renewable electricity, and energy efficiency services.
• 108 kton of HVO production at the Sines Refinery through co-processing.
• Commissioning of the Coral South FLNG, now operating in plateau conditions.
• Reduced energy consumption by 17% compared to 2022.
• Reduced freshwater withdrawal by 14% compared to 2017.

Social Achievements

• Provided targeted high-impact social advisory to 100% of critical communities in Iberia, Brazil, and Africa.
• Supported 1,712,092 beneficiaries through various social investment initiatives.
• Reached 25% of total headcount in volunteers, moving closer to the 2025 target of 26%.
• Increased representation of employees with disabilities by 20% compared to the previous year.
• 51.4% of new hires were women.

Governance Achievements

• Increased the percentage of women in the new Board of Directors from 28% to 37%.
• Improved gender balance within board-level committees.
• Implemented a robust Corruption Prevention Policy and a comprehensive Prevention of Money Laundering and Financing of Terrorism Policy.
• Implemented OKR methodology for aligning teams and setting ambitious goals.
• Achieved an overall score of 86% in the Bloomberg Gender Equality Index.

Climate Goals & Targets

Environmental Challenges

• Addressing climate-related risks and opportunities, including physical (extreme wind and rain events) and transition risks.
• Managing indirect value chain emissions (scope 3), which are complex to manage.
• Managing water risks, particularly in Iberia, where physical water quantity risk is prevalent.
• Increasing waste production due to refinery turnarounds and site dismantlement.
• Addressing safety incidents, including a fatality in Guinea-Bissau.

Mitigation Strategies

• Implementing policies, practices, and projects to reduce greenhouse gas emissions.
• Incorporating a global carbon price into the evaluation of new projects.
• Improving physical and transition climate-related risk assessments.
• Investing in operational energy efficiency, electrification, and renewable electricity generation.
• Implementing measures to improve water efficiency, including water recycling systems.
• Developing a VOC management plan for the Sines refinery.
• Implementing initiatives to enhance safety, including dedicated programs addressing driving challenges.
• Conducting thorough investigations following incidents and providing support to affected individuals.

Supply Chain Management

Supplier Audits: 72 on-site audits in 2023

Responsible Procurement

• Code of Ethics and Conduct
• Sustainable Procurement Policy
• ESG criteria integrated into procurement process
• Supply4Galp platform

Climate-Related Risks & Opportunities

Physical Risks

• Extreme wind and rain events

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products and low-carbon solutions

Reporting Standards

Frameworks Used: TCFD, EU Taxonomy, TNFD, UN Global Compact, OECD Guidelines for Multinational Enterprises, GRI, CSRD

Certifications: ISO 14001, ISO 9001, ISO 50001 (Sines Refinery), EN 12591:2009 (Viana do Castelo Park), SEVESO (applicable sites), LEED and WELL Platinum (new Lisbon headquarters - in progress)

Third-party Assurance: Third-party verification of carbon footprint

UN Sustainable Development Goals

• SDG 7: Affordable and Clean Energy
• SDG 13: Climate Action
• SDG 4: Quality Education
• SDG 10: Reduced Inequalities
• SDG 11: Sustainable Cities and Communities
• SDG 17: Partnerships for the Goals

Galp's initiatives contribute to these SDGs through various programs related to renewable energy, education, community development, and social inclusion.

Sustainable Products & Innovation

• Biofuels (HVO, SAF, biodiesel)
• Renewable electricity
• Decentralized solar solutions
• Bio lubricants
• Renewable diesel

Awards & Recognition

• Bloomberg Gender Equality Index