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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.

At Repsol, we work proactively and systematically to identify and understand stakeholder expectations in relation to our sustainability performance. Since 2005, we have annually conducted a materiality analysis in order to identify which issues are most relevant for our stakeholders. These issues are integrated into our internal decision-making processes, thus advancing in the creation of economic, social, and environmental value.

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

 

How do we do it?

Through the double materiality analysis, in which all businesses and corporate areas take part and that is presented to the Sustainability Committee, body of the Board of Directors. It covers the entire value chain and is revised annually.

This analysis is based on the methodology established in the reporting standards (ESRS) of the Corporate Sustainability Reporting Directive (CSRD).

It consists of five phases:

  • Analysis of the context and business model
  • Stakeholders consultation
  • Identification of impacts
  • Evaluation of the IROs
  • Results and validation
  • Analysis of the context and business model We have carried out an analysis of the context, internal and external, and a study of the entire extended value chain, considering all the company's activities, in all the geographical areas where we have activity, our upstream relationships, with suppliers of goods and services, partners, regulators, investors, and downstream with customers and society. These analyses have allowed us to carry out a first identification of impacts, risks, and opportunities (IROs).
  • Map and stakeholder consultation We have revised the company's stakeholder map, identifying 9 groups and 40 subgroups. We have also carried out a hierarchy of the main groups based on the AA1000 standard through different tools, studies, and consultations. This process allows stakeholders to be classified in a threedimensional matrix: interest, influence, and collaboration. In parallel to the subsequent phases, we have carried out active listening to stakeholders. In 2024, consultations have been carried out with four stakeholders (own workforce, suppliers and contractors, customers, and society) through online questionnaires, interviews, and working groups. For the remaining five groups, the assessment has been inferred from public information, analysis, and consultations with the areas of the company that are managers of these stakeholders.
    Stakeholders Engagement process Purpose of engagement Integration of results in management
    Clients Customer voice.Customer service attended (face-to-face, telephone, mail, etc.).Digital services (Waylet chatbot, forms, etc.). To get to know the customer in greater depth, their consumption habits, preferences and suggestions.To respond to claims and complaints. Customer voice analysis.Assessment of the customer care service.Definition and results-based improvement plans.
    Shareholders and the Financial Community Results presentation, roadshows with senior management participation, General Shareholders' Meeting, Engagement Report. Maintain excellent communication and transparency with shareholders and the financial community, explaining our profitable energy transition strategy with attractive returns for our stakeholders. During 2024, the Board of Directors submitted Repsol's energy transition strategy for advisory approval at the 2024 General Shareholders' Meeting.
    Suppliers, contractors and partners Engagement and communication with suppliers and contractors in the purchasing and contracting processes.Communication with contractor companies within the framework of the Safety Excellence Program, through individual meetings to address concerns and suggestions, open webinars to disseminate topics of interest, and structured work sessions at different levels. Search, selection, contracting and evaluation of the supplier, carrying out due diligence and attending to the needs that may arise during the life of the contract.Promote safety in operations through constant and coordinated communication with contractors, addressing challenges and best practices, and driving continuous improvement in work processes aligned with the principles of the Excellence Program. Integration into the procurement and contract process based on the results of supplier performance evaluations.Incorporation of suggestions to optimize processes and performance in safety, strengthening coordination and continuous improvement in operations.
    People in the Organization Liaise with workers' representatives via committees and work groups.Surveys of satisfaction and commitment to work within the Nuestra Voz program.Direct listening channels, such as the People and Organization teams in each area and country, the Employee Service (SAE) and the intranet as a space for communication and resources.Collaboration spaces such as events and specific sessions. Understand and address the needs, interests and concerns of employees, effectively collecting opinions, suggestions and incidents, to maintain a motivating and productive work environment.Promote an open and transparent dialogue that allows identifying areas for improvement and strengthening working conditions.Promote the active participation of employees in the continuous improvement of the work environment. Specific action plans that driv engagement, satisfaction, and career development.Collective bargaining and concrete measures to improve working conditions, with continuous monitoring of their evolution.
    Public Administrations and Organizations Participation in regulatory processes, events, informative round tables and collaboration meetings with public representatives. Convey Repsol's vision regarding those issues related to the activity it carries out, with the aim of obtaining the institutional, legislative, and social license necessary to operate. Regulatory and advocacy strategy 2024-2027.Annual regulatory management plan, through the Regulatory Coordination Committee, with a focus on priority cross cutting files.Integrated vision of Repsol's participation in organizations and associations to support correct representation.
    Company Participatory dialogue with communities in the area of influence of operations throughout the life cycle. Shared value agreements. Maintain transparent communication about operations. Proactive dialogue and responsible and transparent management of impacts. Obtain your social license to operate. Participatory processes on projects.Definition and participatory monitoring of improvement plans.Signing of agreements with the communities.Follow up of inquiries and complaints received.
    Media and opinion makers Press releases, meetings with the media, corporate websites, social networks and contacts with the media offering technical training sessions. Convey a unique, integrated, and global image of Repsol, projecting a consistent image that allows the Company to be recognized. Nearly 20 visits and attendance of more than 120 journalists to the Tech Lab and the renewable fuels unit of the Cartagena refinery, attended by more than 120 journalists with the main objective of bringing the media, their professionals and other opinion leaders (social media influencers) closer to why Repsol is committed to renewable fuels, how they are generated, where, how and why.
    Business ecosystem Meetings, seminars, conferences, working groups, participation in industry associations. Acting in a coordinated manner in business, sectoral and cross-sectoral partnerships to achieve greater impact and facilitate collective decision-making. Active participation in the development of guides and tools that we incorporate into our internal management processes.It offers the opportunity to have dialogues with peers to reinforce sectoral positions.
    Innovation and entrepreneurship ecosystem Innovation hubs through which proofs of concept are developed with startups, R+D centers, universities and other corporations and technological conferences are held. Accelerate the development of our own technologies and/or projects, to achieve the goals set to be net zero emissions by 2050, through innovation and collaboration. Creation of the All4Zero industrial innovation hub together with large cross sector corporations to scale, through collaboration with startups, universities and R+D centers, technologies focused on decarbonization and circular economy.The All4Zero association was officially constituted in January 2024 and since then work has been underway on the implementation of 12 innovative proofs of concept with the stakeholder group.
  • Identification of topics and potentially material impacts, risks, and opportunities We have carried out a definition of topics and subtopics within which the identified IROs are classified, ensuring traceability with the topics and subtopics of the ESRS standards. In addition, Repsol incorporates industrial safety, cybersecurity and data processing, and responsible taxation, as they are relevant due to the company's activity. We have defined an expanded list of IROs. For each IRO, both the stakeholder it affects and the impact on the value chain and the geographical area are identified, when considered relevant. In addition, the impacts generated by the company or its dependence (material, human, and social resources) are taken into account.
  • Impact, risk, opportunity (IRO) evaluation The evaluation of IROs has been carried out by expert areas of the company, as well as by stakeholders at topic and subtopic level. The evaluation methodology has used the variables dictated by the CSRD directive.
    • For impacts, the expert areas evaluate in a range from 1 to 5 (where 1 is the minimum value and 5 the maximum) the extent of effect of the impact, the irremediability for restoring to the situation prior to the impact, and the probability of occurrence. At the same time, stakeholders assess, at topic and subtopic level, the magnitude, which represents the severity or benefit of the impact, also in a range from 1 to 5. To obtain the impact materiality, the average value of the variables that make up the severity (scope, irremediability, and magnitude) is obtained and multiplied by the probability.
    • For risks and opportunities, the expert areas assess the potential magnitude of the annual financial effects in the three foreseen time horizons. These are generally based on the operating result before taxes, and the probability of occurrence of the event, based on statistics of historical events or, failing that, on expert judgment. The result of multiplying the two factors is compared to a scale of 1 to 5 constructed with the company's annual operating result. For risks of lower severity that are not assessed in the risk map, a specific qualitative or quantitative assessment is carried out as established in the previously defined financial materiality methodology.
  • Results and validation The assessment is conducted at IRO level. The materiality of each topic and subtopic is determined by the IROs that compose them, taking the highest value of impact or risk within that subtopic or topic. The average value of the valuation in both cases is defined as the threshold to determine both financial materiality and impact. 44 impacts and 17 material risks and opportunities have been identified, grouped into the topics and subtopics in the table shown below.
    ESG Topic Sub-topic
    Environmental Climate change Energy transition and decarbonizationRenewable and non-renewable energy consumption
    Environmental Pollution Pollution of airPollution of waterPollution of soil
    Environmental Water and marine resources management Water
    Environmental Biodiversity and ecosystems Impact on terrestrial ecosystems and inland watersEffect on marine ecosystems
    Environmental Resource use, waste management and circular economy Resource inflowResource outflow
    Social Talent management and working conditions Workforce welfare, labor rights and employee satisfactionAttracting and retaining talentDevelopment and trainingDiversity, Equity, and Inclusion
    Social Health and safety Workforce health managementWorkplace accidentsIndustrial Safety
    Social Workers in the value chainSocial commitment and relationship with communities Well-being of workers in the value chainESG criteria in value chain managementDialogue and commitment to the community and affected groups
    Social Customer satisfaction and safety Responsible marketing and communicationQuality of products and servicesCustomer service and complaints management
    Governance Ethics and integrity Whistleblowing channel (Ethics and Compliance Channel)Code of ConductCorruption, bribery and money launderingResponsible tax policy
    Governance Corporate Governance Regulatory compliance
    Governance Cybersecurity and data processing Privacy and security of stakeholders' personal dataCybersecurity of internal platforms
Why do we do it?

The results of the materiality analysis are integrated into the Global Plan and Local Sustainability Plans. The actions set out in these plans aim to maximize positive impacts and opportunities identified, and minimize risks and negative impacts. This allows the company to make strategic reflections and decisions that evolve the business model towards economic, environmental, and social sustainability.
 
In addition, the materiality analysis helps us identify the issues of greatest relevance to Repsol and our stakeholders, with the aim of reporting this information in the company's Consolidated Management Report.
Staff in a Repsol meeting room

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, organizing 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 analyze the results in order to take them into account in our decision-making processes.

More information on sustainability at Repsol

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Consolidated Management Report

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