Repsol sustainability

Sustainability

Sustainability is a key piece in our vision for the future and a commitment taken on by all of us who are part of the company. Therefore, at Repsol we include governance, environmental, and social issues in the decision-making processes of all our activities.

 

 

Governance

Our sustainability model has the support and participation of the Senior Management, whose members define our company's objectives, action plans, and practices in this regard. We can find the best example of this commitment in our CEO, Josu Jon Imaz, whose sustainability objectives accounted for up to 5% of his annual variable compensation and 10% of his multi-annual variable compensation.

At the company we have three committees with competences in this area: the Sustainability Committee, Audit and Control Committee, and Ethics and Compliance Committee.

The Sustainability Committee is a specialized committee of the Board of Directors whose function is to understand and guide the policies, objectives, and guidelines in the environmental, social, and safety areas. One of the proposals this Committee approved in 2016 was the Sustainability Report, a monographic report on climate change, a new Code of Ethics and Business Conduct, and a company risk map.

Another specialized committee of the Board of Directors is Audit and Control, which oversees the fulfillment of the Code of Ethics and Business Conduct, studies the projects related to the code and any changes made to them, and ensures the fulfillment of the regulations.

Lastly, the Ethics and Compliance Committee, which is multidisciplinary in nature, manages the monitoring system and fulfillment of the code it is named after.


 

inportant in Sustainability

Ethics and compliance

At Repsol, we understand that ethical conduct is inseparable from integrity and good judgment. That is why we take ethical conduct above and beyond strict compliance with the law.

In order to guarantee compliance, in 2016 we approved a new Code of Ethics and Business Conduct that provides guidelines for professional and personal conduct. In 2017, we want to ensure that all employees receive training on the new Code.

We also have a new Ethics and Compliance Channel, available 24 hours a day and administrated by an external provider, which allows employees and any other stakeholder to confidentially ask questions and report potential breaches.

In addition, we have strengthened our compliance and control mechanisms with the appointment of a Chief Compliance Officer and the creation of the new Division of Compliance Processes.

 

Human rights and community relations

We use every means available to prevent our activities or decisions from having a negative impact on human rights. That is why last year we implemented the commitments expressed in our Community Relations and Human Rights Policy. In this regard, we included social and human rights factors in 100% of the impact evaluations made in 2016.

Last year we also defined a roadmap to develop the capabilities of the personnel involved, directly and indirectly, in the relationship with the local communities. To this end, we carried out new training workshops focused on risk, impact, and opportunity management.

At Repsol, we have mechanisms in place to attend to claims, concerns, and complaints from the local communities. In 2016, we attended to 148 human rights-related claims through 13 incident reporting channels in seven countries. Of these, 119 were resolved and 29 are currently being processed.

 

 

Safety in operations

We have a long-term safety strategy that pursues a double objective: to reduce accident rate indicators and to systematically apply a set of forward-looking actions to prevent major industrial accidents. In 2016, we had a Total Accident Frequency Rate of 1.46, down 35% from 2015.

Additionally, in order to reduce personal injury rates we set up the 10 Basic Safety Rules for employees and contractors, focused on the following areas: safe driving, work permits, isolation and lockout, entry to confined spaces, excavation, mobile equipment, work at height, lifting operations, falling objects, and leak prevention.

In order to prevent major industrial accidents, in 2016, we launched a preemptive safety program, SMArt Keys, with initiatives focused on the safety of processes applied to Upstream, Refining, Chemicals and LPG operations. This program incorporates training activities to reduce the number of accidents due to human factors, reinforcing the management of more hazardous processes and the implementation of preventive maintenance and inspection of safety systems in plants.

 

 

357 million euros

invested in reduction actions of a total of €500 million committed

 

 

Reduction of

4.3 Mt

of CO2 between 2006 and 2016

 

 

1.2 Mt

of CO2 between 2014 and 2016

 

Climate change

At our company, we strive each day to be a part of the solution to climate change. That is why we are developing energy solutions to evolve towards a low-emission future.

We are promoting a greater presence of natural gas in the energy mix. We consider gas to be the most efficient solution to promote a structured transition to a low-emission future, due to the fact that the CO2 emissions associated with natural gas represent approximately half of those associated with coal. In our Upstream portfolio, approximately 65% of production and 75% of reserves correspond to gas.

For Repsol, the key to fighting climate change is technological innovation, which will help us to gain insight into carbon capture, use, and storage (CCUS). This line is the most plausible way to achieve the objectives of the Paris Agreement (COP21), since it is the only line capable of substantially reducing greenhouse gas emissions from fossil fuels. That is why this CCUS technology is one of the main lines we are working on within the Oil & Gas Climate Initiative, which we form part of together with nine other large companies in the oil and gas sector.

Additionally, energy efficiency will be the main driver for emission reduction. Repsol has been promoting plans for reducing energy and carbon intensity in its operations for years. Between 2014 and 2020, our objective is to reduce emissions by 1.9 million metric tons of CO2 equivalent. To date, we have achieved almost 65% of this objective.

Renewable energy is another tool to use in the fight against climate change, and it is sure to play an important role in the future energy mix when its technological maturity allows it to be competitive. That is why we are currently investing in sustainable mobility in addition to researching and producing biofuels.

 

 

Management of resources and environmental impacts

With regard to water management, we are implementing a specific 2015-2020 improvement action plan for each of our facilities. Thanks to the work of a multidisciplinary team at each of the centers, we have achieved nearly 95% of the defined lines, exceeding the target of 85% set for 2016.

Furthermore, we have reduced our waste generation by 15,508 metric tons. We have achieved nearly 50% of our 50,000-metric ton target set for the 2015-2020 period.

Lastly, we undertake to mitigate the potential impacts on biodiversity and the resources it provides (ecosystems services) during the planning and development of our products and operations.