Materiality analysis

 

The process of materiality, step by step

• Analysis and relation with stakeholders

• • 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

• Identification of sustainability matters

• 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.

• Prioritization of matters

• 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.

• Materiality matrices

• 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.