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Our strategy

Materiality analysis

Materiality analysis, listening to our stakeholders

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Our company, corporate areas, and business units have identified their stakeholders and have permanent and transparent channels and mechanisms for dialogue with them.

We structure our relationship with our stakeholders at a global level. Our relationship at each of these three levels requires specific mechanisms adapted to our context in order to adequately identify their needs and expectations regarding our ethical, social, and environmental performance.

Additionally, we work to proactively and systematically identify and understand their expectations in relation to our sustainability performance as well as in order to integrate them into our internal decision-making processes.

How do we do it?

Through materiality analysis. Our objective is to integrate the materiality process into the company by involving all areas that interact with stakeholders and incorporating the results as key input into the sustainability strategy. These are the phases of the process:

Analysis and relations with stakeholders

Identify the key stakeholders and classify them based on their impact and dependence on the company.

Identify possible matters


Create a long list of potentially material matters.

Prioritize matters

Assess and prioritize the material matters based on the importance for stakeholders and on the analysis of the social, economic, and environmental impact of each matter for the company.

Select matters in materiality matrices

Map the matters on a materiality matrix and define the decision areas: material matters, relevant matters, and non-material matters.

 
The process of materiality, step by step

    • At Repsol, we interact daily with a wide variety of stakeholders. Dialogue and transparency are essential in creating value in a sustainable way and in facing challenges and opportunities. Some of our stakeholders participate directly in our value chain, others influence our way of doing business by establishing the laws and regulations in the countries where we operate.
    • The company's stakeholder map is defined by the different areas in charge of its management. At Repsol we evaluate the channels and frequency of communication as well as their expectations for information regarding our management to ensure that the relationship process is adequate. The identified stakeholders are shown below:


    Stakeholders (Level I)

    Stakeholders (Level II)

    Shareholders, investors, and financial institutions

    Shareholders, Investors, and credit rating agencies; Consultants, advisors, and proxy advisors; Financial analysts; Market analysts

    Customers

    Service stations, Lubricants, Asphtalts, and Specialized Products, Chemicals, Direct Sales and Aviation, Electricity and gas, New mobility businesses

    Society

    Union organizations, Local communities, Indigenous communities, nonprofits, Academia, Civil society observatories, R&D+i, Citizens

    Public institutions and organizations

    International bodies and institutions, State bodies and institutions, Local bodies and institutions, Authorities, and other public agencies and Governments

    Employees

    Management, Leaders, Professionals, Administrative/ Operational/ Junior/ Other Staff

    Media

    General Journalists (Digital, traditional, and social media formats)  Specialized journalists (Digital, traditional, and social media formats)

    Partners, competitors, and business associations

    Joint operation / activity partners, Active partners not operated by Repsol, Chambers of commerce and other business associations, Competitive companies in the sector, Companies in other sectors

    Suppliers and contractors

    Goods suppliers and services suppliers
  • Based on the documentary analysis of internal and external sources, as well as through interviews and meetings with the corporate and business areas and the preparation of a materiality benchmark for other companies, we have prepared a base list of 34 potentially material matters, grouped into 10 pillars that contribute specifically to the SDGs:

    Preparation of a base list of sustainability issues with the potential to generate challenges and opportunities in the short-/medium-/long-term, which can impact both the company’s and our stakeholders’ interests (which may be affected both by issues generated by outside actors, and by impacts derived from the company’s actions) in the short-/medium-/long-term

    • Environment: SDGs 6, 12, 14, 15
    • Climate change and energy transition: SDGs 7, 9, 13
    • Safety: SDGs 3, 8
    • Human Capital: SDGs 3, 5, 8, 10
    • Value chain management: SDGs 8, 12, 16, 17
    • Human rights and community relations: SDGs 8, 10, 11, 16
    • Good corporate governance and transparency: SDG 16
    • Ethics and compliance: SDG 16
    • Innovation and technology: SDGs 9, 13, 17
    • Products and services: SDGs 7, 8, 16

    You can see a list of the SDGs on materiality issues in this report.

  • Internal prioritization (Importance for Repsol) is carried out by consulting the heads of the business units and corporate areas, taking into account the businesses and different countries where the company is present. External prioritization (Importance for stakeholders) is carried out based on consultations with stakeholders and the areas of the company responsible for its management.

    Two standard questionnaires have been prepared to evaluate queries on the list of potentially material issues: the questionnaire that assesses the importance for stakeholders, and the questionnaire that assesses the importance for Repsol. Both questionnaires include the final list of 34 material issues and their 10 main focuses to be evaluated based on the importance variable, assigning each issue a value from 1 to 5 according to the established criteria:

    • Insignificant
    • Of little significance
    • Significant
    • Very significant
    • Critical

    During 2020, more than 5,000 interviews and surveys were carried out, with 74% participation. In addition, an artificial intelligence tool was used that allows us to globally compare our material issues with other companies in the sector, current legislation, and thousands of news items in the media and social networks. Finally, more than 100 documents were analyzed that collect the needs and demands of the stakeholders obtained through consultations, initiatives, analysis, and other projects derived from direct dialogue with our stakeholders.

  • Based on the valuations obtained in the previous point, the materiality matrices are calculated and the thresholds are designated, from which the most significant or material issues are determined. After applying these thresholds in 2020, 24 material issues were found. A global company matrix and 8 specific stakeholder matrices have been obtained.

Matters identified by stakeholders

Materiality chart

Why do we do it?

The results of the materiality analysis are integrated into the Sustainability Strategy and are deployed through the Global Plan and the Local Sustainability Plans. In this way, we guarantee that our strategy focuses on the areas that are most relevant for our stakeholders and for the company, adapting to a rapidly evolving environment in terms of sustainability issues. The actions established in these Plans, both locally and globally, are aimed at improving performance and minimizing the impact of the identified sustainability risks. This allows the company to make strategic reflections and decisions that allow the business model to evolve, guaranteeing its economic, environmental, and social sustainability.

In addition, the materiality analysis helps us to identify the most relevant issues for Repsol and our stakeholders, with the aim of reporting this information in the company's Integrated Management Report.

Conducting studies to identify expectations

These studies enable us to learn about the matters that most interest us — both internally and externally — and are used to set forth measures that improve our risk management and sustainability performance and also to report on the company's performance regarding the identified aspects.

We conclude this systematic process with the various means of communication that the business units establish with their stakeholders, through dedicated channels on the company's website, the launch of surveys, the organization of workshops to exchange best practices, or the dissemination of matters of interest, as well as by sending communication bulletins, among others.

Once each stakeholder's expectations have been evaluated, we analyze the results so that we may take them into consideration in our decision-making.

See our sustainability reports and policies