Analysis and relationship with stakeholders

• At Repsol we interact with a wide variety of stakeholders on a daily basis. Dialogue and transparency are essential to sustainably creating value and take on challenges and opportunities. Some of our stakeholders participate directly in our value chain. Others influence the way we do business by establishing laws and regulations in the countries in which we operate.
• In 2022, the stakeholder map was reviewed. It is divided into 9 broad groups, which are sub-divided into 40 categories.
• To determine which stakeholder group has the most weight, we carried out a ranking exercise based on their capacity to influence Repsol's decision-making and their interest in the company's activities. As a result of this analysis, a power-interest matrix was constructed.
• In addition, at Repsol we evaluate the channels and frequency of communication, as well as their expectations of information regarding our management, to ensure that the relationship process is adequate.
• The stakeholder groups identified are shown below:

Identification of sustainability matters

Drawing up a base list of sustainability issues with the potential to generate challenges and opportunities which may impact both the interests of the company itself and those of our stakeholders in the short/medium/long term.

The list is made up of 22 issues articulated in six axes: natural capital, climate change, human capital, commitment to society, managing the value chain, ethics and transparency. For each of the issues we have defined positive and negative impacts.

To prepare it, we consider the opinion of a panel of experts within Repsol as well as the specific company context, and current and future trends in terms of sustainability.

Environment
• Natural capital
• Air quality
• Water quality and management
• Circular economy and waste management
• Biodiversity and ecosystems
• Climate change
• Energy transition strategy and sustainable technologies
• Adaptation to climate change: environmental management and natural disaster protocol
• Sustainable finance
Social
• Human capital
• Labor rights and employee satisfaction
• Health and prevention of work-related accidents
• Physical security
• Diversity and equal opportunity
• Talent attraction, retention and development
• Commitment to society
• Human rights
• Social commitments and relationship with communities
• Just transition for communities
• Management of the value chain
• Sustainable supply chain
• Costumer satisfaction and safety
Government
• Ethics and transparency
• Integrity
• Regulatory compliance
• Good governance and responsible leadership
• Transparent relationship with the public administration
• Responsible communication

Prioritization of material topics

Material topics are prioritized by applying the concept of ‘double materiality’ in accordance with the Corporate Sustainability Reportig Directive (CSRD). The positive and negative impacts associated with each of the identifiedl topics are assessed, and afterwards an aggregation is carried out at the material topic level.

• Financial materiality is based on expert judgment and takes the Company’s risk analysis, among others, as a reference.
• Impact materiality is mainly determined using the results obtained after the assessment carried out through the listening channels ( workshops, interview, surveys). These results are weighted considering the stakeholder hierarchy made with the power-interest matrix.

Building the materiality matrices

To define the double materiality matrix, the results obtained for financial materiality are moved to the X axis, and the results of impact materiality to the Y axis. To identify the material topics, the categorization thresholds for the most significant topics are designated.

After applying them in 2022, 22 material topics were identified. A global matrix and nine stakeholder-specific matrices were obtained during the process.

Validation of results, communication and integration into the Sustainability Strategy

The results of the materiality analysis are appraised by a committee of experts comprising risk, reputation and sustainability specialists and are then presented to the Executive Committee, which is responsible for validating them. The resulting materiality is then integrated into the Sustainability Strategy and implemented through the Global Plan and local sustainability plans. The actions envisioned in the plans, both locally and globally, are aimed at improving performance and minimizing the impact of the identified sustainability risks. This enables the Company to think strategically and take decisions to evolve the business model to ensure economic, environmental and social sustainability.