Galp Energia SA CDP Climate Change Questionnaire 2023 26 de July de 2023
Welcome to your CDP Climate Change
Questionnaire 2023
C0. Introduction
C0.1
(C0.1) Give a general description and introduction to your organization.
Galp is an integrated energy operator with activities that span from exploration and production of oil and natural gas to refining and marketing of oil products and biofuels, distribution and supply of natural gas and generation and marketing of electricity. To guarantee success, and thrive through the energy transition, Galp has updated its purpose to 'Let's regenerate the future together'. To fulfil this purpose, Galp will regenerate its portfolio, its relationships but also its people. Overall, this will set a direction for the company, internally and externally, towards a low carbon future.
All these changes will translate into our portfolio and operations. Between 2023-2025, we intend to allocate 70% of our net capital to low and zero carbon products and services. By 2030, we aim to have a more electrified, diversified and decarbonized global portfolio, offering a combination of long-term growth and value opportunities in the energy sector.
Our mission is to create value for all our stakeholders (customers, employees, shareholders, suppliers and business partners), acting in energy markets with ambition, innovation and competitiveness, promoting respect for the principles of ethics and sustainability. Our activities are strongly expanding worldwide, being predominantly located in Portugal, Spain, Brazil and Africa. The activity of our Company is also based on 4 key business pillars: Upstream, Commercial, Industrial & Midstream and Renewables & New Businesses.
The Upstream business comprises a portfolio of c.20 projects in different phases, such as exploration, development and production in 4 countries (Brazil, Angola, Mozambique and Namibia). Galp's portfolio comprises a selection of projects located in the world class pre-salt Santos basin, high potential natural gas projects in the Rovuma basin in Mozambique, and promising exploration assets in São Tomé and Príncipe and Namibia.
The Industrial & Midstream business unit, which includes Refining & Midstream, incorporates the refining, co-generation, biofuels and logistics business, as well as the Group's oil, gas and power supply and trading activities. Galp operates an integrated refining system comprising Sines refinery in Portugal (the Matosinhos Refinery closed in 2021) with a total processing capacity of 226 kbpd, and 88 mmboe of raw materials processed. In 2022 this business units also sold c. 0.6 TWh of electricity from cogeneration,handled 54.6 TWh of NG/LNG in sales and trading,and 15.8 mton of oil products supply.
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Galp Energia SA CDP Climate Change Questionnaire 2023 26 de July de 2023
The Commercial pillar integrates a distribution network including approximately 1475 service stations. Refined products are primarily marketed in the Iberian Peninsula, but also in Africa, with total sales to direct clients of 7.4 mton and 4.1 TWh of electricity in 2022. The Commercial business unit is leading the transition into low carbon fuels and mobility, providing Galp customers with diversified solutions, including a network of >2.4 k charging points in Iberia and targeting >10 k charging points by 2025, while simultaneously offering low carbon fuels for aviation and maritime transport. Through Galp Solar, the Company has been helping customers increase their energy efficiency and save on power consumption by providing them with decentralised electricity equipments. It reached >25K decentralised solar energy installations in Iberia during 2022 and is targeting >300 MW installed capacity by end 2025. With c.70% of its planned investments up to 2025 to be allocated to projects that promote the energy transition, Galp aspires to anticipate new trends, adapt its portfolio to future needs and promote a progressive reduction of its carbon intensity, while maintaining a track record of value creation. The Renewables and New businesses unit represents a clear step for Galp to embrace the energy transition by developing a sustainable and diversified portfolio of renewable power generation and is focused on developing a sustainable and diversified portfolio of renewable energy generation, currently focused on Iberia and Brazil, which can be leveraged by synergies with the company's remaining energy businesses.
In 2022, Galp added c.400 MW, totalling c.1.4 GW of installed capacity under operation out of a portfolio of c.9 GW, of which 4 GW are expected to be operational by 2025. We are targeting a gross renewable operating capacity of c.12 GW by 2030. We are evaluating the development of green hydrogen solutions, leveraging our privileged position and industrial skills, targeting up to 700 MW electrolyser capacity by 2030. Additionally, we are also assessing entry opportunities in the battery value chain, namely in lithium processing, having announced the development of Europe's largest and most sustainable lithium conversion plant to be built in Portugal, with an annual production capacity of up to 35 kton of lithium hydroxide and a start of commercial operations in 2026, in a joint venture with Northvolt.
C0.2
(C0.2) State the start and end date of the year for which you are reporting data and indicate whether you will be providing emissions data for past reporting years.
Reporting year
Start date
janeiro 1, 2022
End date
dezembro 31, 2022
Indicate if you are providing emissions data for past reporting years
Yes
Select the number of past reporting years you will be providing Scope 1 emissions data for
3 years
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Galp Energia SA CDP Climate Change Questionnaire 2023 26 de July de 2023
Select the number of past reporting years you will be providing Scope 2 emissions data for
3 years
Select the number of past reporting years you will be providing Scope 3 emissions data for
3 years
C0.3
(C0.3) Select the countries/areas in which you operate.
Brazil
Cabo Verde
Eswatini
Guinea-Bissau
Mozambique
Namibia
Portugal
Sao Tome and Principe
Spain
C0.4
(C0.4) Select the currency used for all financial information disclosed throughout your response.
EUR
C0.5
(C0.5) Select the option that describes the reporting boundary for which climate- related impacts on your business are being reported. Note that this option should align with your chosen approach for consolidating your GHG inventory.
Other, please specify
Galp is reporting emissions and energy data from the operations it controls, plus the equivalent data from participated Upstream projects where it has an equity stake. This is meant to increase transparency regarding our environmental performance.
C-OG0.7
(C-OG0.7) Which part of the oil and gas value chain and other areas does your organization operate in?
Row 1
Oil and gas value chain
Upstream
Midstream
Downstream
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Galp Energia SA CDP Climate Change Questionnaire 2023 26 de July de 2023
Other divisions
Biofuels
Grid electricity supply from gas
Grid electricity supply from renewables
C0.8
(C0.8) Does your organization have an ISIN code or another unique identifier (e.g., Ticker, CUSIP, etc.)?
Indicate whether you are able to provide a unique identifier for | Provide your unique |
your organization | identifier |
Yes, an ISIN code | PTGAL0AM0009 |
Yes, a SEDOL code | B1FW751 |
Yes, a Ticker symbol | GALP PL |
Yes, a Ticker symbol | GALP.LS |
C1. Governance
C1.1
(C1.1) Is there board-level oversight of climate-related issues within your organization?
Yes
C1.1a
(C1.1a) Identify the position(s) (do not include any names) of the individual(s) on the board with responsibility for climate-related issues.
Position of | Responsibilities for climate-related issues |
individual or | |
committee | |
Board-level | At Galp, the integration of climate and energy transition related risks and |
committee | opportunities - over the short, medium and long-term - in the Company's strategic |
formulation process and investment planning represents a key factor towards a | |
rigorous oversight needed to execute an ambitious energy transition strategy. The | |
Company recognises the importance of responsible leadership and of the definition | |
of robust and effective governance mechanisms that integrate key climate and | |
energy transition related challenges into our strategy.Due to the importance and | |
potential impact of climate-related risks and opportunities in Galp's operations, | |
revenues and the materiality of these topics for society, investors and other | |
stakeholders, they are overseen by the Board of Directors (BoD) and the Executive | |
Committee (ExCom), where the CEO is the designated member responsible for | |
climate strategy. The BoD and the ExCom play a central role in overseeing the | |
investment proposals, to ensure that they are compatible with the decarbonization | |
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Galp Energia SA CDP Climate Change Questionnaire 2023 26 de July de 2023
and energy transition strategy, measured based on their impact on the carbon | |
metrics and targets. The BoD annually approves the 10-year business plan that | |
materializes the Company's energy transition strategy, its short- and long-term | |
incentives, and the risk appetite statements for the main risks that the Company | |
faces in the execution of its strategy. In Addition, the BoD regularly reviews Galp's | |
risk portfolio and oversees the Company's consolidated performance, which | |
includes climate-related disclosures, and progress on climate-related targets, as | |
reported in the Integrated Management Report approved by the BoD. The | |
Sustainability Committee, supported by the Risk Management (RM) Committee, is | |
the board-level committee responsible for climate-related topics, being key in | |
assisting the Board in integrating sustainability principles into the decision-making | |
process and ensuring that the main risks and opportunities (including climate- | |
related topics) that we face are identified and continually managed. The Chairman | |
of the Sustainability Committee was also the vice-Chairman and the Lead | |
Independent Director of the Board, and a member of the Risk Management | |
Committee. The BoD and the Sustainability Committee, RM Committee, | |
Remuneration Committee and Audit Board have oversight on climate-related | |
issues, including associated risks and opportunities, which are relevant to the | |
delivery of long-term value in the context of the energy transition. | |
Chief Executive | The CEO is a member of Board of Directors and Executive Committee and the |
Officer (CEO) | designated member responsible for climate strategy. The Board of Directors (BoD) |
oversees the Company's strategic formulation process and investment planning, | |
along with the Executive Committee (EC). Energy transition and decarbonization | |
are priority matters managed directly by the Executive Committee. It is the | |
Executive Committee that proposes to the Board of Directors the company's | |
strategy, including its climate strategy, objectives and targets and oversees the | |
implementation of that strategy, monitoring the performance of carbon metrics and | |
the fulfilment of the climate targets. Business and annual investment plans are also | |
overseen by the Executive Committee in order to ensure the alignment with the | |
energy transition and climate targets. | |
Board-level | The Risk Management Committee, comprising 3 non-executive Board members, is |
committee | responsible for advising the Board on the oversight and monitoring of Galp's main |
risks, including climate-related risks; evaluating the compliance with risk tolerance | |
levels and the implementation and effectiveness of decided mitigation actions; | |
assessing Galp Group's internal control and risk management systems; issuing | |
appropriate opinions and recommendations; and evaluating compliance with | |
Galp's risk management policy. It collaborates with the Sustainability Committee in | |
identifying and quantifying climate-related risks. | |
Chief Risk | The Chief Risk Officer (CRO), a member of the Board of Directos and the |
Officer (CRO) | Executive Committee, ensures, among others, that risk appetite, including climate- |
related risks, is considered in decision-making, oversees and guides the risk | |
assessment processes and the definition and implementation of response actions | |
across the organisation; and ensures that the risk management guidelines defined | |
by the Executive Committee are complied with and reflected in the internal risk | |
management standards. | |
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Galp Energia SGPS SA published this content on 22 September 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 September 2023 14:01:06 UTC.