Sustainability objectives

Climate change

To be a net zero emissions company by 2050, while limiting global warming well below 2°C and complying with the Paris Agreement and in line with what is required by society.

• Objectives for 2023
• Objectives for 2025
• Objectives for 2030
• 2020 objectives achieved

Objectives for 2023
• Drive the progressive decarbonization of our suppliers and contractors.

Objectives for 2025
• Achieve a total reduction of 1.5 million tons of CO2 eq in the Refining Spain, Refining Peru, Chemicals and Exploration and Production (operated) businesses.
• Reduce routine flaring by 50% in the Exploration and Production business (operated) compared to 2018.
• Achieve a methane intensity of 0.20% compared to 2017 in the Exploration and Production business (operated assets).
• Reduce carbon intensity indicator by 15% based on 2016.
• Achieve Gold Standard level in OGMP 2.0 (Oil and Gas Methane Partnership) requirements for operated assets by 2023 and non-operated assets by 2025.
• Increasing renewable electricity generation capacity to 6 GW.
• Reach a renewable hydrogen equivalent generation capacity of 552 MW, in order to reach 1.9 GW by 2030.

Objectives for 2030
• Reduce the company's absolute emissions from operated assets (Scope 1 and 2) by 55% compared to 2016.
• Reduce the company's net emissions (Scope 1, 2 and 3) by 30% compared to 2016.
• Increase renewable electricity generation capacity to 20 GW.

NOTE: Scope 1 emissions are direct emissions; Scope 2, indirect emissions indirect emissions associated with external electricity and steam needs for the operation of our facilities; and Scope 3, other indirect emissions derived from the use of our products.

2020 objectives achieved
• The company's carbon intensity indicator has been reduced by 5%.
• Under the Energy and Carbon Plan, during 2020 we reduced 444 thousand tons of CO2 eq. verifiable under ISO 14064. The reduction in emissions obtained in the 2014-2020 period has reached 2.4 MtCO₂ equivalent, meeting the target set for 2020.
• We analyzed the alignment with the objectives derived from the Paris Agreement of the associations and initiatives in which we participate, with the following result: 26 aligned; 2 partially aligned; 0 unaligned.
• We met the objective established with the entry into operation of the Delta Wind Project, made up of eight parks and a total of 89 wind turbines with 335 MW of installed power. Delta will produce 992 GWh per year, the equivalent of the average annual consumption of 300,000 homes, and will avoid the emission of one million tons of CO₂ in the atmosphere per year.
• We installed 10 fast charging points (50 kW of power) in 10 service stations, in addition to the 37 that we already had in 2019. We also have two ultra-fast charging facilities.

Innovation and technology

To be a company that drives technological innovation as a lever for transformation towards more sustainable business models. We want to focus on addressing the current challenges facing energy companies such as reducing energy intensity and CO₂ emissions, improving the profitability of current assets through sustainable and competitive production, differentiating products from the competition, differentiating solutions based on data, and providing customer-oriented energy services.

• Objectives for 2022
• Objectives for 2027
• 2020 objectives achieved

Objectives for 2022
• Ensure the deployment, along the entire value chain, of digital initiatives in implementation phases (scaling or mature operation) promoting new digital solutions that contribute to efficient and sustainable energy generation.

Objectives for 2027
• Achieve a 50% investment in technology projects aligned with the axes of the Sustainability Model.

2020 objectives achieved
• We achieved a 32% investment in technology projects aligned with the pillars of the Sustainability Model, exceeding the goal set for 2020. Investments in "low-emissions technologies" projects stood out.
• We modified the investment areas, focusing on: 1) Decarbonization and circular economy, 2) Advanced mobility and renewables, and 3) Technologies for digitization and optimization of assets.
• We designed digital solutions based on artificial intelligence, advanced data analytics, robotic process automation (RPA) or omnichannel aimed at increasing safety in operations, energy efficiency and the reduction of CO₂ emissions.

People

We are committed to people and to promoting their development and that of the communities where we operate. Therefore, our ambitions are to establish strong relationships with the communities where the company is present, to ensure the safety of people with full respect for human rights, to support people and promote their development and that of their social environment, and to be an inclusive organization with diverse talent management focused on the employee and guaranteeing equal opportunities.

• Objectives for 2025
• 2020 objectives achieved

Objectives for 2025
• By 2021-2025, be in the first quartile of performance according to Corporate Human Rights Benchmarking (CHRB).
• Adapt the company's regulatory framework and processes to new regulatory developments in human rights due diligence.
• Contribute to the 2030 Agenda through our social projects, benefiting 4 million people in the period 2021-2025.
• Establish parity in hiring processes and ensure the use of inclusive diversity criteria at all stages of professional development, with the goal of reaching 35% of women in leadership positions.
• Be an attractive company to work for as it is recognized as respectful and non-discriminatory towards the LGBTI community.
• Develop programs to promote the incorporation of people with disabilities in the organization, in relation to their labor insertion in the countries where it applies.
• Adopt hybrid work, to maximize efficiency in the use of resources, the contribution of individual and team value, as well as the reconciliation of personal and work life.
• Have a comprehensive pandemic management action plan in place to mitigate the risk of disruption to the company's core business.
• Ensure the implementation of the strategic framework for occupational health and well-being in 100% of the countries where Repsol operates.
• Ensure the talent needs of the organization in the medium and long term.
• Accompany our leaders to evolve towards a more inspiring and entrepreneurial leadership where the teams are the protagonists of transformation.

2020 objectives achieved
• Using the United Nations Guiding Principles as a basis, we analyzed the grievance mechanisms in different countries, proposing improvement actions. The project concluded in 2020 with actions in Mexico, Ecuador and Bolivia.
• We developed and internally communicated the new methodology for calculating the beneficiaries of our social projects, which is common for the company and for Repsol Foundation. It is based on defining existing project typologies and establishing a single indicator associated with each typology that is easily understandable.
• We have encouraged to take the online course on unconscious bias, which aims to promote diversity and equal opportunities.
• We achieved the goal of reaching 31% of women in leadership positions. The gender equality and parity initiatives have allowed us to reach 58% of women in external hires and 40% in promotions.
• We signed the Standards of Conduct for LGBT non-discrimination companies, promoted by the United Nations, and we have created a group of LGBT Allies with participants in Spain, Brazil and the USA.
• In Spain, the 2,592 teleworkers were joined by 4,190 working remotely due to the pandemic. A perception survey shows 86% favorability with regard to teleworking.

Enviroment

Excellent and integrated environmental management in the decision making process.

• Objectives for 2023
• Objectives for 2025
• Objectives for 2030
• 2020 objectives achieved

Objectives for 2023
• Implement environmental criteria in the management of suppliers and the contracting processes for goods and services with high safety and environmental risks.
• Build and start up the first advanced biofuels production plant at the Cartagena refinery with a capacity of 250,000 tonnes from waste.

Objectives for 2025
• Develop cross-cutting circular economy projects in partnership with external entities.
• To have integrated water management in 100% of our assets and industrial centers of the company's main businesses. To have quantitative indicators defined.
• Quantify and assess environmental impacts and dependencies under natural capital criteria, developing pilot projects in the company's main businesses.
• Train and sensitize 100% of employees on environmental issues.
• Implement Repsol's environmental requirements in all new acquisitions and commercial relationships.

Objectives for 2030
• Achieve a sustainable biofuels production capacity of 1.3 million tonnes by 2025 and more than 2 million tonnes by 2030, of which more than 65% will be produced from waste and up to 100% to meet market or regulatory demands.
• Recycle the equivalent of 20% of our total polyolefin production by 2030.

2020 objectives achieved
• We developed and implemented more than 220 circular economy projects in 14 countries throughout the value chain.
• We developed a scorecard to measure the circularity of the company and created a specific section on the corporate website to promote its dissemination.
• We participated in the development of the biodiversity guide of the Natural Capital Protocol, with the Natural Capital Coalition and the World Conservation Monitoring Center of the United Nations Environment Program (UNEP-WCMC).
• We updated the online course "Introduction to Safety and the Environment", on circular economy, climate change, water management, waste management, natural capital and biodiversity, incident management and learning, risks and impacts and safety culture of Repsol. This course has already been completed by 300 people (July - December 2020).
• We monitored compliance with safety and environmental standards (SMA) in the contracting, qualification and evaluation of suppliers, with a level of compliance of 90%.

Safe operation

We pursue the ambition of Zero Accidents and seek to maintain our cyber resilience at the highest levels.

• Objectives for 2023
• Objectives for 2025
• 2020 objectives achieved

Objectives for 2023
• Implement standardized safety criteria in the management of suppliers and in all contracting processes for goods and services with high safety and environmental risks.
• Keep cybersecurity awareness for everyone in the company up to date.
• Incorporate the latest advanced technical protection technology into our infrastructure, both central and operational.
• Retest and update our cyber incident response plans.
• Constantly analyse evolving threats to guide our protection systems and processes.
• Expand our cyber intelligence and offensive security capabilities.

Objectives for 2025
• Exercise safety leadership in a clear, proactive and systematic way at all levels of the organization, starting with the management team.
• Improve personal and process accident rates in accordance with the paths calculated based on the best performance of the companies in the sector.
• Implement Repsol's safety requirements in all new acquisitions and commercial relationships.

2020 objectives achieved
• We incorporated the analysis of human factors in incident investigations, and established improvement actions to avoid them. In addition, we have worked to deploy factors that influence performance, such as fatigue or work overload, in our research and tools.
• We completed the initial phase of the “Safety Leap” program, encompassing a group of more than 2,300 people (99.4% of all leaders).
• We trained the purchasing area in safety and environment with the online course "Introduction to Safety and the Environment". 60% of employees in that area completed the course during 2020.
• We monitored compliance with safety and environmental standards (SMA) in the contracting, qualification and evaluation of suppliers, with a 90% rate of compliance.

Ethics and transparency

We act responsibly and with integrity wherever we are present. Based on this, our ambitions are to ensure that there are no cases of corruption in the activities carried out by the Repsol Group to achieve the highest national and international standards in matters of good governance and be publicly recognised as a company with integrity and transparency in fiscal matters.

• Objectives for 2023
• Objectives for 2025
• 2020 objectives achieved

Objectives for 2023
• Train and raise awareness of sustainability issues (compliance, human rights, safety and environment) among all those involved in procurement and contracting processes.
• Eliminate presence in non-cooperative OECD/EU jurisdictions (except for unavoidable and legitimate business reasons) and rationalize the corporate structure.
• To be considered as a "transparent" or "responsible" entity by those stakeholders who carry out evaluations.
• Promote cooperative relations and the search for amicable solutions with tax administrations.

Objectives for 2025
• Consolidate the compliance model, adapting to the evolution of the company and focusing on the management and culture of compliance.
• Formalise self-monitoring models adapted to the specific regulatory requirements of countries and businesses with higher risk.
• The Board of Directors will continue to promote the company's sustainability by incorporating the best practices available and the creation of long-term value for its stakeholders.

2020 objectives achieved
• We implemented a formalized indicator management and reporting system using a scorecard of compliance indicators to objectively measure the company's performance in terms of compliance.
• We selected a leading market tool to optimize the management and traceability of Repsol's obligations in relation to the GDPR (General Data Protection Regulation).
• With regard to corporate simplification, 28 entities have been dissolved or have ceased in their activities. We don’t have any active and controlled companies in tax havens according to the Spanish list.
• We voluntarily published the CbCR, being the first Spanish company to make it public. We continue leading rankings of the most transparent companies of the IBEX 35 by the Compromiso y Transparencia Foundation and Oxfam.
• Repsol has reinforced its commitment to cooperative compliance with the Spanish tax authorities (AEAT) in the framework of the Spanish best tax practices code by filing the report “Informe Voluntario de Transparencia 2019”. The AEAT highlights Repsol's availability and willingness that will contribute towards mutual knowledge, trust and tax certainty.