Materiality analysis

Listening to our stakeholders

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 our context in order to adequately identify their needs and expectations in relation to 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?

With materiality analyses. 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:

The process of materiality, step by step

  • Analysis and relationship with stakeholders

    1
  • Identification of sustainability matters

    2
  • Prioritization of material topics

    3
  • Building the materiality matrices

    4
  • Validation of results, communication and integration into the Sustainability Strategy

    5

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:

Repsol stakeholder map

Periodic review in collaboration with stakeholder management areas

How we relate

At Repsol, the relationship is both direct and indirect and we work to identify the preferred channels for each stakeholder

Shareholders, investors and financial institutions

Results presentations
Senior management
Roadshows Events (AGM, Low Carbon Day)

Customers

Commercial network, specialized events and trade fairs
Television and social networks
Repsol website

Society

Social programs
Grievance mechanisms
Television, social networks and Repsol website

Public bodies and institutions

Forums, seminars and conferences
Digital apps (webinars, etc.)
Repsol website (queries mailbox)

People in the organization

Presentations or events
Intranet and email
Trade union representatives

>Press and media

Press releases
Specific interviews
Repsol website and social networks

Partners, competitors and business associations

Trade negotiations
Seminars and conferences
Sector associations (OGCI, etc.)

Suppliers and contractors

Negociaciones comerciales
Ferias, foros y congresos
Plataformas digitales

(1) The pillars have been selected based on the top 10 issues in the materiality matrix for each stakeholder.

How we add value at Repsol(1)

Commitment and sustainability performance. Repsol works to contribute value to its stakeholders through management aimed at minimizing the impact of all its activities.

Climate change

Establishment of an energy transition plan with a commitment to achieve net zero emissions by 2050. Carbon Intensity Indicator (CII) targets for 2030, 2040 and 2050.

Ethics and compliance

Integrated compliance management model. Rejection of all forms of corruption and commitment to compliance with anti-trust regulations.

Safety

Commitment to safety is embedded in the culture of the organization. It ensures spill management, process safety, and crisis and emergency management.

Environment

Priority is given to minimizing potential impacts. Circular economy, biodiversity and water management strategy.

Human capital

Work environment based on equal opportunity, diversity and inclusion.

Good corporate governance and transparency

Governance system established in accordance with national and international best practices and standards.

Human rights and community relations

Policies and regulations aligned with the UN Guiding Principles on Business and Human Rights.

Products and services

Innovation and research in technologies to develop sustainable products. Managing the safety of products and services throughout the life cycle.

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.

Matters identified by stakeholders

    • Critical

    • 1

      GHG emissions and energy transition strategies

    • 2

      Energy and climate policies and regulation

      Very significant

    • 3

      Integrity (corruption and money laundering)

    • 4

      Safe operations

    • 5

      Incident and emergency management

    • 6

      Future technologies for mitigating climate change

    • 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

      Capital Natural

    • 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 Digitalization and new ways of working

    • 20

      Good corporate governance

    • 21

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

    Importance to stakeholders

    8.2
    7.8
    7.47.07.0
    7.5
    8.0
    8.5
    9.0
    9.59.5
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 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

Why do we do it?
The results of the materiality analysis are integrated into the Sustainability Strategy and deployed through the Global Plan and Local Sustainability Plans. In this way we ensure that our strategy focuses on the areas that are most relevant to our stakeholders and to the company, adapting to a rapidly evolving environment with respect to sustainability issues. The actions set out in these Plans, both locally and globally, aim to improve performance and minimise the impact of identified sustainability risks. This allows the company to make strategic reflections and decisions that evolve the business model to ensure its economic, environmental and social sustainability.

In addition, the materiality analysis helps us 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 allow us to know the issues that are of most interest, both internally and externally, and are used to establish actions to improve our risk management and sustainability performance and to report on the company's performance in the aspects identified.

This systematic process is completed with the different communication channels that the business units establish with their stakeholders, through dedicated channels on the company's website, launching surveys, organising conferences to exchange good practices or disseminate issues of interest, as well as sending out communication bulletins, among others.

Once the expectations of each stakeholder have been assessed, we analyse the results in order to take them into account in our decision-making processes.

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