The process of materiality, step by step
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Analysis and relationship with stakeholders
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Identification of sustainability matters
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Prioritization of material topics
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Building the materiality matrices
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Validation of results, communication and integration into the Sustainability Strategy
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.
- In 2022, the stakeholder map was reviewed. It is divided into 9 broad groups, which are sub-divided into 40 categories.
- To determine which stakeholder group has the most weight, we carried out a ranking exercise based on their capacity to influence Repsol's decision-making and their interest in the company's activities. As a result of this analysis, a power-interest matrix was constructed.
- 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 and financial community
Results presentations, Senior management roadshows, Events (AGM, Low Carbon Day), Television, social networks and Repsol website
Customers
Commercial network, specialized events and trade fairs
Television, social networks and Repsol website
Society
Social programs
Grievance mechanisms
Televisión, social networks and Repsol website
Regulatory bodies and institutions
Forums, seminars and conferences
Digital apps (webinars, etc)
Repsol website (queries mailbox)
People in the organization
Presentations or events
Intranet and e-mail
Trade union representatives
Media and opinion formers
Presentations or events
Intranet and e-mail
Trade union representatives
Companies and business associations
Trade negotiations
Seminars and conferences
Sector associations (OGCI, etc)
Suppliers and partners
Trade negotiations
Trade fairs, forums and conferences
Digital platforms
Research center
Conferences
Digital platforms
Seminars and conferences
How we add value at Repsol(1)
Climate change
The energy transition is the central pillar of the company's strategy: commitment to have net zero emissions by 2050. Carbon Intensity Indicator (CII) targets for 2030, 2040 and 2050.
Ethics and transparency
Comprehensive compliance management model. Rejection of all forms of corruption and commitment to compliance with anti-trust regulations. Governance system established in accordance with national and international best practices and standards.
Natural capital
Priority is given to minimizing potential impacts. Circular economy, biodiversity and water management strategy. Targets defined in the Sustainability Plans for 2025.
Human Capital
Work environment based on equal opportunity, diversity and inclusion. Targets in the Sustainability Plans for 2025. Commitment to safety is embedded in the culture of the organization. It ensures spill management, process safety, and crisis and emergency management.
Commitment to society
Policies and regulations aligned with the United Nations Guiding Principles on Business and Human Rights. Targets in the Sustainability Plans for 2025.
Managing the value chain
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 which may impact both the interests of the company itself and those of our stakeholders in the short/medium/long term.
The list is made up of 22 issues articulated in six axes: natural capital, climate change, human capital, commitment to society, managing the value chain, ethics and transparency. For each of the issues we have defined positive and negative impacts.
To prepare it, we consider the opinion of a panel of experts within Repsol as well as the specific company context, and current and future trends in terms of sustainability.
- Natural capital
- Air quality
- Water quality and management
- Circular economy and waste management
- Biodiversity and ecosystems
- Climate change
- Energy transition strategy and sustainable technologies
- Adaptation to climate change: environmental management and natural disaster protocol
- Sustainable finance
- Human capital
- Labor rights and employee satisfaction
- Health and prevention of work-related accidents
- Physical security
- Diversity and equal opportunity
- Talent attraction, retention and development
- Commitment to society
- Human rights
- Social commitments and relationship with communities
- Just transition for communities
- Management of the value chain
- Sustainable supply chain
- Costumer satisfaction and safety
- Ethics and transparency
- Integrity
- Regulatory compliance
- Good governance and responsible leadership
- Transparent relationship with the public administration
- Responsible communication
Prioritization of material topics
Material topics are prioritized by applying the concept of ‘double materiality’ in accordance with the Corporate Sustainability Reportig Directive (CSRD). The positive and negative impacts associated with each of the identifiedl topics are assessed, and afterwards an aggregation is carried out at the material topic level.
- Financial materiality is based on expert judgment and takes the Company’s risk analysis, among others, as a reference.
- Impact materiality is mainly determined using the results obtained after the assessment carried out through the listening channels ( workshops, interview, surveys). These results are weighted considering the stakeholder hierarchy made with the power-interest matrix.
Building the materiality matrices
To define the double materiality matrix, the results obtained for financial materiality are moved to the X axis, and the results of impact materiality to the Y axis. To identify the material topics, the categorization thresholds for the most significant topics are designated.
After applying them in 2022, 22 material topics were identified. A global matrix and nine 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.