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.
• The company's stakeholder map is defined by the different areas in charge of its management and includes 8 main stakeholder groups that are subdivided into 40 sub-groups.
• Stakeholders are classified and prioritized based on their impact and dependence on the Company, understood as the capacity of the Stakeholder Group evaluated to influence the development of the organization and vice versa, through its decisions or actions in one or more of the socioeconomic, reputational, operational and regulatory areas.
• 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 in the short/medium/long term, which may impact both the interests of the company itself and those of our stakeholders (susceptible to being affected both by issues generated by external actors and by impacts derived from the company's own actions) in the short/medium/long term.

Based on documentary analysis of internal and external sources, as well as interviews and meetings with corporate and business areas and the preparation of a materiality benchmark of other companies, we drew up a base list of 34 potentially material issues, grouped into 10 pillars that specifically contribute to the SDGs:

ODS
• ODS 1
  ODS 2
  ODS 3
  ODS 4
  ODS 5
  ODS 6
  ODS 7
  ODS 8
  ODS 9
  ODS 10
  ODS 11
  ODS 12
  ODS 13
  ODS 14
  ODS 15
  ODS 16
  ODS 17
• 1

  GHG emissions and energy transition strategies
• 2

  Energy and climate policies and regulation
• 3

  Integrity (corruption and money laundering)
• 4

  Safe operations
• 5

  Future technologies for mitigating climate change
• 6

  Incident and emergency management
• 7

  Water management
• 8

  Air quality
• 9

  Circular economy and waste management
• 10

  Cybersecurity
• 11

  Safety culture and leadership
• 12

  Respect for labor rights,stable working environment and employee well-being
• 13

  Natural capital
• 14

  Equal opportunities, diversity and flexibility
• 15

  Responsible tax policy
• 16

  Human rights and community relations
• 17

  International sanctions
• 18

  Data protection
• 19

  Customer satisfaction and safety
• 20

  Good Corporate Governance
• 21

  Responsible management of commercial relations (suppliers, contractors and partners)

• Environment

• Climate change and energy transition

• Safety

• Human capital

• Managing the value chain

• Human rights and community relations

• Good corporate governance and transparency

• Ethics and compliance

• Innovation and technology

• Products and services

• Large circle: high linkage
  Small circle: medium linkage

In this report you can see how the SDGs relate to material issues.

Prioritization of material topics

Internal prioritisation (Importance for Repsol) is carried out through consultations with the heads of the business units and corporate areas, considering the businesses and different countries where the company is present. External prioritisation (Importance for stakeholders) is carried out based on consultations with stakeholders and the areas of the company responsible for their management.

Two standard questionnaires were drawn up to evaluate the list of potentially material issues: the questionnaire that evaluates the importance for stakeholders and the questionnaire that evaluates the importance for Repsol. Both questionnaires include the final list of 34 material issues and their 10 main pillars to be evaluated according to the importance variable, assigning each issue a value from 1 to 5 in accordance with the established criteria:

• Insignificant
• Not very significant
• Significant
• Very significant
• Critical

In 2021, more than 2,700 interviews and surveys were conducted with a participation rate of 40%. In addition, an artificial intelligence tool was used 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 analysed that reflect the needs and demands of stakeholders obtained through consultations, initiatives, analyses and other projects derived from direct dialogue with stakeholders.

Building the materiality matrices

In 2021, the concept of double materiality was reflected in the graphic representation of the matrixes. The X axis reflects financial materiality and the Y axis reflects social and environmental materiality. These matrices are constructed from the evaluations obtained in the previous point and the thresholds of categorization of the most significant or material topics are designated. After applying them in 2021, 21 material topics were identified (24 issues in 2020). A global Company-wide matrix and eight 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.