2022
INTEGRATEDMANAGEMENTREPORT

Committed topositive
progress

2022
INTEGRATEDMANAGEMENTREPORTINDEXLETTER FROM THE CHAIRMANLETTER FROM THE CEO
2022 MILESTONESKEY INDICATORS

01 POSITIVE MOTION

4
5
6
8

12

04 FINANCIAL
AND BUSINESS

1.1 Transforming our energy business

14

1.2 Accelerating value creation acrossall our businesses

PERFORMANCE

130

19

4.1 Business environment132

1.3 Our company

21

4.2 Economic and operational
performance

138

4.3 Analysis of consolidated results

140

4.4 Liquidity and capital resources

148

02 GOOD GOVERNANCE

46

2.1 Corporate governance48

2.2 Our sustainability management54

2.3 Sustainability-aligned policies

59

2.4 Risk management60

2.5 Proactive stakeholder engagement

63

POSITIVE
03 DRIVING
IMPACT66

3.1 Advancing towards a Net Zero world68

3.2 Moving forward on minimising
our environmental impact

82

3.3 Ready for workplace change

92

3.4 Becoming a zero-accident
workplace100

3.5 Facilitating a sustainable supply
chain

106

3.6 Behaving ethically and respectfully113

3.7 Local community relations

122

3.8 Positive impact on society - Cepsa
Foundation

126

3.9 The global agenda: alignedwith the SDGs

129

05 APPENDIX154

Appendix 1 About this report

156

Appendix 2 Materiality

158

Appendix 3 Sustainability performance160

Appendix 4 Detailed information about
the company’s key risks

254

Appendix 5 Internal control information

257

Appendix 6 Additional financial
information

261

Appendix 7 Country by country tax report266

Appendix 8 Sustainability standards index

271

Letter from the

Chairman

On behalf of Cepsa’s Board of Directors, I would like tothank our entire workforce for their commitment, resilienceand outstanding operational performance delivering toour customers and partners in a year that was marked
by geopolitical tensions, market volatility and significant
disruptions to global supply chains.
I would additionally like to thank Cepsa’s Board and our CEO
Maarten Wetselaar, who took the helm in 2022, for their strong
commitment to Cepsa’s energy transition journey.
The impact of global warming can only be mitigated throughthe collective and collaborative efforts of civil society,governments and businesses alike to pursue sustainability anddeliver quantifiable decarbonization targets.
Cepsa’s ‘Positive Motion’ strategy is our response to thescientific community’s call for urgent action to deliver carbon
neutrality by 2050.
We are fully committed to playing our part in the developmentof an efficient global energy system that both guarantees
continuity of supply and increases the share of renewablesources in the global energy mix.
We intend to:• G enerate more than half of Cepsa’s EBITDA from sustainablebusinesses by 2030
• R educe our Scope 1 and 2 emissions by 55% and Scope 3
by 15-20% by 2030, among the most ambitious targets
in the sector• R each net zero by 2050 and go beyond it to become
net positive

the development of the green hydrogen industry in Spain andPortugal, with a production capacity equivalent to 2 GW andbiofuels production of 2.5 million tons by 2030.
The second pillar is to spearhead the production and adoptionof advanced second generation biofuels in our markets inorder to accelerate the decarbonization of transport. To thisend, Cepsa is targeting annual production of 800,000 tons ofsustainable aviation fuel by 2030.
Our third pillar is based on the transformation of ourrefineries into diversified Energy Parks. These parks will
focus on the development of green products that enable thedecarbonization of our productive processes and, in turn, help
other sectors with their decarbonization efforts.
The final pillar is our commitment to leading sustainablemobility in Spain and Portugal by 2030, which will also
contribute to the delivery of the European Union’s ‘Fit for 55’
package, which aims to bring EU legislation in line withthe climate goals agreed by its institutions.
We have also taken steps to align our businesses with thesustainability requirements of global financial institutions
by agreeing financial terms requiring the delivery of key
environmental and social indicators. I would like to thankall of our financial partners for their continuing support andcollaboration in placing sustainability criteria at the core of our
financing and investment decisions, as well as in our
day-to-day operations.
In conclusion, I am proud to observe how we are moving in theright direction with our new Positive Motion strategy, whose
holistic approach is laying the foundations for a new Cepsa
and whose guiding principle is to contribute towards
a better future for everyone.

The reconfiguration of our businesses is based on three pillars.
The first is our decisive commitment to the developmentof green hydrogen as a fundamental energy source and thebest low-carbon alternative for such hard-to-abate sectors
as industry and heavy transportation. Cepsa intends to lead

AHMED YAHIA AL IDRISSIChairman of Cepsa

4

Letter from theCEO

It is my pleasure to introduce our Integrated Report for 2022,
a watershed year for Cepsa, marking the start of a new era
for the company driven by a renewed vision, purpose andset of values.
It was a complex year from geopolitical and economic
standpoint, roiled by the uncertainty derived from the war
in Ukraine, high energy prices and rampant inflation, andgrowing concern around energy supply security and autonomy
and the consequences of climate change, an increasingly
pressing issue.
We are unquestionably at a crossroads, on the cusp of major
global transformation of energy markets in which, the need tostep up efforts to accelerate the energy transition is coming
into clear view. In fact, public and private agents are visiblycommitting to speeding up the pace of change with strategies
such as REPowerEU in Europe and the Inflation Reduction Act(IRA) in the US.
Here at Cepsa, 2022 was marked by our new business strategy,
Positive Motion, which we unveiled in March and represents amajor opportunity and challenge. It is designed to use Cepsa’s
strengths as a business to create a leading sustainablemobility and energy in Spain and be a benchmark in the energy
transition in Europe. It is articulated around the clear missionof going beyond Net Zero and shrinking our carbon footprint
to become Net Positive, making it easier for our customers
and broader society to move in the right direction towards
decarbonisation and climate change action.
We will achieve that mission with an ambitious investment planframed by economic viability and sustainability criteria alignedwith the Sustainable Development Goals, under the United
Nations Global Compact, of which we have been signatories
for more than 15 years. As proof of our commitment tothese goals, we converted our €2 billion syndicated loan into
sustainability-linked financing for the first time, tying its terms
and conditions to compliance with specific environmental andsocial targets, including reducing emissions and increasing
gender equality. We also remain committed to young talent,innovation and digital transformation in the business.
As for our earnings, we reported a 62% increase in EBITDA
to €2.9bn in 2022 and announced a near doubling ofinvestments to 2025 to €3.6bn vs the last three years. Thisis a record result in a year marked by high market volatility

and underpinned by robust performance across all of ourbusinesses.
2022 was, without a doubt, a year of change for Cepsa. We
launched large-scale projects to develop green hydrogen,biofuels, renewable energies and sustainable mobility making
Positive Motion a reality. More specifically:• We invested in and scaled up our Energy Parks in Andalusia,
committing strategically to the creation of the Andalusia
Green Hydrogen Valley, the largest project of its kind inEurope and signed an agreement with the Port of Rotterdam
for the creation of the first green hydrogen corridor between
northern and southern Europe.
• We began producing advanced biofuels at our energy parks
and struck alliances with Iberia, Iberia Express, Binter, Vueling,
Air Nostrum, Tui and Etihad for the supply of sustainableaviation fuel (SAF) in a bid to decarbonise air travel.
• We progressed the rollout of our network of ultra-rapid EV
chargers as part of our alliance with Endesa for accelerating
electric mobility in Spain and Portugal.
• We launched a new family of sustainable chemicals
products, NextLAB and NextPhenol, and supplied Unileverwith the world’s first renewable LAS surfactant, milestones
contributing to the sustainable development of thechemicals industry.
In a year in which economic difficulties affected all of society,especially the most vulnerable, we reinforced our commitment
to our customers by applying savings solutions and offering
discounts and promotions to mitigate the effect fromthe energy and inflation crises.
Before signing off, I would like to take this chance to thankthe entire Cepsa team, for your commitment and hard work,without which this year’s robust performance would not havebeen possible. Thank you also to the Management Committee
and our shareholders, Mubadala and Carlyle, for their supportand encouragement during my first year as CEO. Lastly,
I would like to thank our customers for their loyalty, and ourpartners, suppliers and stakeholder institutions for placing
their trust in us as we work together to deliver the energy
transition in Europe.

MAARTEN WETSELAAR

CEO of Cepsa
5

Milestones

2022 MILESTONES

01

02

We unveiled our Positive
Motion strategy forbecoming a benchmark
in the energy transition.

Framed by Positive Motion,
we announced the company’s
new purpose and values.

03

04

We started to dismantle
our refinery in Tenerife incollaboration with the local
regional government.

We endorsed the UN
Women’s Empowerment
Principles and fostered
LGBTI inclusion.

05

06

We converted our €2 billion
syndicated loan tosustainable finance.

We stepped up our efforts
to attract young talent,in a year of record hires,to drive our new strategy
forward.

07

08

Underpinned by ourcommitment to using water
responsibly, we pledged
to cut our withdrawal of
freshwater from waterstressed regions by 20%
in 2025.

We launched Planet Energy,
a digital space for tacking
the challenges and macro
trends being thrown up
by the energy transition.

6

2022 INTEGRATED MANAGEMENT REPORT

09

10

We began producing
advanced biofuels at ourenergy park in Huelva.

We gave our customersa €0.30 per litre
fuel discount.

11

12

We got involved in projects
for the developmentof 7,000 MW of renewablecapacity.

We sealed relevant alliances
for the decarbonisationof air travel with Iberia,
Iberia Express, Binter,
Air Nostrum, Vueling,
Tui and Etihad.

13

14

We joined forces with
Rotterdam Port to create
the first green hydrogencorridor connecting
northern and southern
Europe.

We struck agreementswith Acciona and Endesa
for the promotion ofsustainable road mobility.

15

16

We made Sevillethe European aviation
decarbonisation capital,
fuelling over 200 flights
with biofuels.

We presented the Andalusia
Green Hydrogen Valley,
the largest green hydrogenproject in Europe.

7Key indicators

KEY INDICATORS

Financial indicators
2022

2021

33,446

24,532

EBITDA - IFRS 2

3,262

2,194

Adjusted EBITDA

2,939

1,815

Net profit attributable to equity holders of the parent - IFRS

1,100

661

790

310

2022

2021

268

268

Equity attributable to equity holders of the parent

4,706

4,170

Net debt

2,756

2,759

Earnings (€ million)
Revenue 1

Adjusted net profit attributable to equity holders of the parent

Financial data (€ million)
Share capital

Excise tax oil and gas included.

1 International Finantials Reporting Standards.

2 

8

2022 INTEGRATED MANAGEMENT REPORT

Sustainability indicators
2022

2021

5,491

5,625

63,71065,584

Water withdrawn (million m3)

33.1

33.4

Freshwater withdrawn from water-stressed regions (million m3)

14.4

15.5

Waste managed (thousand tonnes)

62.8

56.9

Waste recovered (%)

64%

62%

Habitats protected or restored (m2)555,900

554,700

Environmental capex (€ thousand)

100,952

43,844

10,3109,820

Female employees (%)

38.0%

37.2%

Women in management positions (%)

26.7%

25.4%

87%

87%

0

0

Employee lost workday injury frequency (LWIF) 2

0.55

0.66

Employee total recordable incident rate (TRIR) 3

0.98

1.20

Local suppliers (%)

35%

38%

Community investment (operational and voluntary) (€ million)

4.5

4.5

Requests for ethics advice (nº)

177

134

1,419

370

Scope 1 & 2 GHG emissions (thousands tCO2eq)
Energy consumed (TJ) 1

Employees (nº)

Employees covered by collective bargaining agreements (%)
Fatalities, employees and non-employees (nº)

Income tax paid by the company (€ million)

This figure relates to the energy consumed within the organisation and excludes the energy generated and sold to third parties.

1 

LWIF: Total number of lost-time employee accidents / Total number of hours worked x 1,000,000.

2 

TRIR: Total number of employee accidents recorded / Total number of hours worked x 1,000,000.

3 

9

01
POSITIVE MOTION

12

1.1 Transforming our energy business

14

1.2 Accelerating value creation acrossall our businesses

19

1.3 Our company

21

Positive
MotionCHAPTER 1 Positive Motion

1 POSITIVEMOTION

GRI: 2-22

OUR PURPOSE:“We are transforming energy and mobility
so that between us we can make the world
a better place”.
We want to play a key role in the energy transition. Our
Positive Motion strategy is designed to make us leaders inmobility and sustainable energy in Spain and Portugal anda benchmark for energy transition. Our new strategy sets
the stage for everything we are doing and will do in the next
years: creating positive value, experiences and solutions inenergy and mobility, offering our customers ways to tackle
the decarbonisation challenge and having a positive impact on
the world around us.

Enabled by an ambitious investment plan, we will drive newenergy transition technologies and offer our customers
new green products, making sustainability criteria a corecomponent of our investment decisions.
We will invest a total of roughly €7 to €8 billion by 2030,
earmarking over 60% to sustainable investments.

CONVERSION OF OUR €2 BILLIONSYNDICATED LOAN TO SUSTAINABLE
FINANCEOne of the first steps in our investment plan was to extend the maturity
on our €2-billion syndicated credit facility to September 2027.
For the first time, that new agreement ties the loan’s financial terms
to delivery of environmental and social indicators1. In addition, thecompany and its syndicate of banks have committed to donating
100% of any decrease in interest payments to environmental andsocial projects.
Going forward, framed by Positive Motion, we will continue to tie
financial instruments to sustainability targets and so accompany
execution of our energy transition projects.

Three environmental and social KPIs: progressive reduction in Scope 1 & 2 emissions to reach a 55% decrease in 2030 versus 2019; 15-20% decrease in the carbon
intensity index of energy products sales, which includes Scope 1, 2 & 3, in 2030 versus 2019; 30% of leadership positions be held by women by 2025.

1 

12

2022 INTEGRATED MANAGEMENT REPORT

Sustainability lies at the heart of our transformation: wewant our activities to have a positive impact on the planet

and on people. To do that, we are focusing on areas of priority
importance to society, assuming specific commitments.

Our key commitments

In 2030
vs. 2019

CARBON EMISSIONSENVIRONMENT

DIVERSITY AND INCLUSION

55% reductionin Scope 1 & 2
emissions

20% reduction
in freshwater
withdrawal fromwater-stressed areas

30% of management
positions held byfemale executives

In 2025
vs. 2019

15-20% reductionin the carbon intensityof the products
we sell (Scope 3)
By 2050By
2025

2% of own employees+ 1% of outsourced
employees of differing
abilities

Zero net emissions

CIRCULAR ECONOMY

In 2030
vs 2019

Increase the circularityof our waste flows by 50%

By 2030

Raise the share of
renewable and circular raw
materials in our energyparks by 15%

Base 100% of our new productionof renewable and biojet diesel
molecules on second-generation
raw materials

Replace the fossil fuel sourcesin the chemical products we sellby introducing renewable andrecycled materials

Positive Motion embodies our ambition to grow and spearhead the path to energy
transition within our social and business reach, framed by ambitions targets
for transforming and decarbonising the company.
Our strategic plan targets
POSITIVE MOTION
In 2030

1 ultra-rapid charging
locations for every 200 km
on essential intercity roads
1 hydrogen refuelling station
every 300 km
2 GW of green hydrogenproduction capacity
2.5 MT of 2G biofuel
production capacity

Over thedecade€7-8 billion of
investments;>60% sustainable

By 2030

Majorityof EBITDA
fromsustainablebusinesses

0.8 MT of annual SAF
production capacity
7 GW pipeline of renewable projects

13

CHAPTER 1 Positive Motion

1.1 TRANSFORMINGOUR ENERGY
BUSINESS

possible to reduce our emissions and help our customers with
their decarbonisation pathways.

We are transforming our energy business into a mobility
and sustainable energy ecosystem. We aim to supply energy
and chemical products with as small a carbon footprint as

3.1 Advancing towards a net zero world

Energy Parks
Customers

Sustainablemobility and newcommerce

B2C
B2B

Partners

14

Sustainableenergy2022 INTEGRATED MANAGEMENT REPORT

1.1.1 Leading sustainable mobility
and new sales models
Fostering customer mobility and the decarbonisation of road transportation is a priority for us. To do that, we are developing
the biggest sustainable mobility ecosystem in Spain and Portugal by:
Mobility-as-a-service: transformationof our 1,800 existing service stations in Spain
and Portugal into digitalised, ultra-convenientpremises that offer an unbeatable customer
experience, including food service, by teaming up
with leading quick-commerce, fast dining andfresh food retailers.

Installing a leading network of ultra-rapid roadsidecharging stations. Target for 2030: at least one
charging facility per 200 km.
Offering our B2B customers on-the-go charging
network and onsite charging solutions to facilitate
their transition to sustainable mobility.
Stimulating demand for hydrogen for heavy roadtransportation. Target for 2030: at least one
refuelling station per 300 km.

Multi energy on-the-go

Sustainable car wash

Convenience store

E-commerce & delivery

Fresh food

Parapharmacy

1.1.2 Spearheading
sustainable energy

1.3.4 Sustainability, mobility
and the customer experience

LEADER IN GREEN HYDROGEN
Green hydrogen is generated from wholly sustainable andrenewable sources and does not generate carbon emissions.
It is an energy transition enabler. Green hydrogen, and thegreen ammonia and green methanol that can be made fromit, have the potential to reduce global energy demand by
15-20% in 2050, as they can be deployed in shipping, aviation,
heavy cargo transport and other industrial sectors where
electrification is challenging. Green hydrogen can also be
used to make synthetic fuels.
Green hydrogen is produced by electrolysis, which splits
water into oxygen and hydrogen molecules using electricity
generated from renewable sources, so that it is produced
without generating carbon emissions, making it the only
genuinely clean form of hydrogen.
Spain is very well positioned to lead the way in the productionof green hydrogen and we want to become a key exporter byleveraging the location of our energy parks in southern Spain

1.3.3.1 Mobility& New Commerce(Andalusia), where the cost of producing renewable energy isamong the lowest and where direct port access exists.
Thanks to that privileged location, we can offer a fullsuite of solutions for industrial, road transportation andshipping customers, while decarbonising our own hydrogenconsumption at our energy parks. In 2030, the company
will have capacity to generate 2 GW of green hydrogen 70%
of which will go to customer decarbonisation, including tocustomers in the shipping industry, where we will sell greenhydrogen molecules in the form of green ammonia. The
remaining 30% will be used to cover our own hydrogen needs
so that the company will be able to stop using grey hydrogenby then.

15

CHAPTER 1 Positive Motion

CREATION OF THE ANDALUSIA GREEN HYDROGEN VALLEYAND THE FIRST GREEN HYDROGEN CORRIDOR BETWEEN THE NORTHAND SOUTH OF EUROPE
Guided by our Positive Motion strategy, we have embarked on the creation of Andalusia Green Hydrogen
Valley, the largest project of its kind in Europe. It will allow us to accelerate our ecological transition,lift our supply security and give the continent greater energy autonomy.
The project entails the commissioning of two facilities with combined capacity of 2 GW and production of
up to 300,000 tonnes of green hydrogen at our energy parks in Campo de Gibraltar (Cadiz) and Palos de la
Frontera (Huelva). The Valley project will be accompanied by 3 GW of wind and solar power facilities.
It will also transform Algeciras Bay into a hub for green shipping fuels (ammonia/methanol) for supply to
our shipping customers.
In tandem, we have reached an agreement with Rotterdam Port (the most important energy port in Europe)for the creation of a green hydrogen corridor to link up the north and south of Europe; it is slated for startup in 2027. That new corridor will guarantee a green hydrogen supply chain between the continent’s top
two ports - Rotterdam and Algeciras - and will contribute to the decarbonisation of industrial and shipping
operations in the vicinity of the ports, while supporting the European Union’s RePowerEU strategy.
In parallel, we are rolling out a host of initiatives, such as our alliance with Ohmium for the developmentof high-efficiency green hydrogen projects in the Iberian Peninsula using proton exchange membrane (PEM)
modular electrolysers, which will make it possible to raise green hydrogen production capacity to up
to 300 MW.

162022 INTEGRATED MANAGEMENT REPORTSECOND-GENERATION (2G) BIOFUELS
Biofuels will play a key role in the decarbonisation oftransport. They are currently the most cost-efficient way
of decarbonising the transport sector as they are compatible
with today’s existing manufacturing and transport systems
and the only technologically mature solution for certain
sectors, including aviation and heavy cargo transport.
The production of biofuels is aligned with the European
Commission’s Fit for 55 package aimed at fostering theuse of alternative greener fuels to reduce GHG emissions
intensity, particularly in shipping and aviation. In aviation, thelegislative initiative known as RefuelEU Aviation seeks todrive the production and consumption of SAF (Sustainable
Aviation Fuels) in the European Union, pushing their use to
2% in 2025, 5% in 2030 and 63% in 2050.
Second-generation (2G) biofuels, unlike their first-generation
counterparts (1G), are made from waste such as usedcooking oils and biodegradable industrial waste. Theircircularity makes it possible to reduce CO2 emissions by asmuch as 90% compared to traditional fuels.
Our investments in this sector will be centred entirely
around the production of biofuels from 2G raw materials.
Thanks to our experience producing biofuels and our strong
credentials in adapting to technological change, we are in aposition to:• Lead production of biofuels in Spain and Portugal, withplans to produce 2.5 million tonnes by 2030, so servicing
road, sea and air carriers.
• Lead production of SAF (Sustainable Aviation Fuels)by 2030, the goal being to make 0.8 million tonnes a year,
a third of the total required under European regulations.
We already command 35% of the Spanish aviation fuelmarket and we are the Spanish aviation industry’s numbertwo supplier.

AMBITIOUS PIPELINE OF RENEWABLE ENERGY DEVELOPMENTS
Renewable sources of energy are marking a watershed
moment in the energy market and constitute a key enabler ofclimate change action and our Net Zero by 2050 ambitions.
Europe wants 80% of demand for power to come fromrenewable sources by 2050. Our goal is to create a portfolioof 7 GW of renewable assets. That would contribute 7.8pp toSpain’s renewable energy targets for 2030. That output would
be used mainly for internal consumption in 2030, specifically

1.3.3.1 Commercial& Clean Energies

including for the production of green hydrogen. It will alsoenable the supply of green energy for electric mobility. 2.2 GWof the planned 7 GW already has grid connection rights.
We currently have a 29 MW wind farm in Jerez with 11 windturbines. Thanks to that facility, we are avoiding the emissionof 32,000 tonnes of carbon a year.

1.3.4 Sustainability, mobility
and the customer experience17

CHAPTER 1 Positive Motion

1.1.3 Transforming the company:
energy parks
Our energy parks, located in Campo de Gibraltar (Cadiz) and
Palos de la Frontera (Huelva), are strategic assets. They
generate cash that facilitates our energy transition strategy.
We plan to tap innovation and technology to realise the parks’full potential to develop new green products and decarbonise
our production process.

focus along with a strong focus on commercial optimisationof operations. In addition, we use IoT (Internet of Things networks and communication technology between devices andwith the cloud) combined with advanced analytics to optimise
production processes.

They are strategically located in southern Europe close to
major ports, key markets and important industrial customers
and boast excellent logistics connections. In these Energy
Parks, safety and operational excellence is a key strategic

1.3.3.1 Energy Parks

Transforming our energy parks
Renewable power

Crude oil

Bio-feedstocks

Electrolyzer forgreen hydrogen

RefineryHVO & SAF

Biochemicals

Other
off-takers

Third-party green
ammonia

CUSTOMERS B2B & B2C

18

Futuremarine fuels

2022 INTEGRATED MANAGEMENT REPORT

1.2 ACCELERATINGVALUE CREATIONACROSS ALL
OUR BUSINESSESGRI: 2-6, 2-22

1.2.1 Global leader in raw materials for detergentsand technical plastics
We are committed to leveraging innovation and technology
to drive sector transformation by using more sustainablechemical products. We want to bolster our leadership positionin the new green chemistry era: transition to lower-carbon
products and processes that enhance the day-to-day lives ofhouseholds and businesses all over the world.
We are the global leader in the production of linear
alkylbenzene (LAB), the key raw material in biodegradable
detergents, and the world’s second-largest producer ofphenol/acetate, essential raw materials in the automotive,
construction and pharmaceuticals industries.

To reinforce our leadership in a sector undergoingtransformation, we plan to continue to add the capacity,strike the alliances and preserve the autonomy needed by apioneering player, while continuing to develop new products
using renewable and recycled raw materials, such as ourlower-carbon NextLAB and NextPhenol product ranges.

1.3.3.3 Chemicals

19

CHAPTER 1 Positive Motion

1.2.2 P ortfolio of Exploration & Production assets in severalof the world’s most prolific basins
We are constantly trying to enhance our portfolio
by strengthening our position and orienting our assets
towards sustainability and efficiency. We generate value by

working under a single, centralised management model
at both operated and non-operated production facilities.

Exploration & Production is a resilient and long-life business in which:•W e are optimising our performance and helping reducecarbon intensity.
•W e are focusing on keeping our barrels low cost and low
carbon.

• We have a very solid team of technical experts.
• There are attractive options for investing in production fields
and top-quality exploration opportunities.

We are committed to sustainability and social responsibility in our business communities. Driven by that commitment, we haveendorsed the World Bank’s Zero Routine Flaring by 2030 initiative.

1.3.3.2 Exploration & Production20

2022 INTEGRATED MANAGEMENT REPORT

1.3 OURCOMPANY

1.3.1 Purpose and values
Framed by our Positive Motion strategy and with the goal of being leaders in green energy and mobility and helping our customers
and society move in a more sustainable manner, we have defined our purpose:“Our purpose is our reason
for being, the motivation thatmoves us to generate value forsociety, for our customers andfor our stakeholders”
Maarten Wetselaar,
CEO de Cepsa

WE ARE TRANSFORMING ENERGY AND MOBILITY SO THAT BETWEEN US WE CAN MAKE THE WORLDA BETTER PLACE
Each word has a precise meaning in relation to our purpose:• Transforming means progress, development, evolution, it means moving forward with our products, ourservices and the experience we offer.
• Energy and mobility are our value proposition.
We are providing best-in-class energy and mobility
solutions.

• Between us is a call for collaboration, for joint commitment, encompassing our management team, ouremployees, our customers, our suppliers, the authorities and society at large.
• And make the world a better place echoes the company’s ultimate purpose: not removed from reality but
yet shining the spotlight on change geared at a better
future.

Our purpose embodies a transformational force that inspires pride and commitment among our employees and helps us be morevaluable to society by engaging it in our business strategy.
21

CHAPTER 1 Positive Motion

OUR VALUES
To inject life into our vision and purpose, together with our key enabler, our people, we have defined a set of corporate values,
hallmarks for who we are and how we do things:

WE CARE ABOUTPEOPLEWE ENTHUSE OUR
CUSTOMERSWE CARE FOR
THE PLANETWE CREATE VALUE,TOGETHERWE DARETO TRYWe are committed
to the safety,
wellbeing anddevelopment of
our teams andcommunities.

We learn and growwith them so as to
top their expectations
by creating uniqueexperiences.

We are working
for a better
energy future.

We work together
effectively,
respectfully andhonestly, bringing
people together toachieve excellent
results.

We tackle changewith enthusiasm
and courage,
championing projects
that can havea real impact.

To define and select our values we conducted a host of activities involving the entire organisation, notably including working
sessions with the Management Committee and workshops and other brainstorming dynamics with our employees and influencers.

222022 INTEGRATED MANAGEMENT REPORT

1.3.2 Value chain
A global company operating throughout the oil & gas, chemicals and power value chain.

EXPLORATION& PRODUCTION

TRADING

ENERGYPARKSMOBILITY& NEW COMMERCE

Searching for and extracting
oil and natural gas, both onland (onshore) and at sea(offshore).

This business supplies raw
materials and intermediate
products to the energyparks and other company
businesses, as well as sellingand marketing crude oil andproducts overseas. We also
supply shipping fuels throughour Bunker business andoptimise the group’s energy
contracts and assets throughour Gas, Power and Emissions
Trading line.

At our energy parks we distil
crude oil to transform it into
products and raw materials foruse in other industries. We arealso leveraging our innovationand sustainability efforts todevelop new green products(e.g., biofuels and hydrogen)in order to decarbonise our
product process and also
help other sectors with theirdecarbonisation efforts.

We are encouraging ourcustomers to move moresustainably, thereby
favouring road transport
decarbonisation, by offeringgreener energy solutionsaligned with all their needs(including electric mobility
and hydrogen), which we
distribute and sell througha range of sales channels inorder to reach all consumers.

COMMERCIAL &CLEAN ENERGIES
We sell biofuels andhydrogen in Spain
and Portugal, as wellas other products,
including aviation fuel,lubricants, asphalts,
gas-oil, butane,
propane, bunker fueland natural gas.

CHEMICALS
We make derivatives that areused as raw materials forthe manufacture of plastics,
biodegradable detergents,
paints and synthetic fibres,among others.

END
CUSTOMER
We help our customers
reduce their environmental footprints byselling them moresustainable products.
23

CHAPTER 1 Positive Motion

1.3.3 Our businesses
GRI 3-3, 2-29

1.3.3.1 Energy
ENERGY PARKS
2022 MILESTONES

Production of biofuels at ourplants in Palos de la Frontera
and Gibraltar-San Roque (Spain)
under the incoming Fuel Quality
Directive (FQD) requirements.
We drove the development andgeneration of biofuels at our energyparks by co-processing vegetableoils. The Gulfinishing unit is alreadycapable of producing hydrogenatedvegetable oil (HVO). In 2023, theHydrocracker unit will likewise beconfigured to co-process.

24

Production of SAF (Sustainable
Aviation Fuels). We are already

Lean Manufacturing - Project
BRIO. This pioneering initiative

producing SAF at our energy parks
from olive stones and other plant
waste generated by the Spanish
olive sector. That fuel is being used
optimally in commercial flights, so
helping deliver Europe’s air travel
decarbonisation pledges.

at our energy parks has enhanced
and optimised production, making
it far safer and more efficient andreliable, while making our employees
a cornerstone of this culturaltransformation. The overriding goal ofthis initiative is to attain operational
excellence in the Energy Parks
business.

2022 INTEGRATED MANAGEMENT REPORTOur refining operations are concentrated in Spain, with twoenergy parks in the south, which account for 33% of installedcapacity, strategically located close to key sea ports, fromwhich we cater to domestic and international demand forrefined products.
At our refineries we distil crude oil and transform it into morevalue-added products of use in numerous sectors, including thetransport, residential, industrial and petrochemical sectors, so
meeting society’s need for energy and materials. We strive toselect the grades of crude oil that best suit our energy parks

and whose hydrocarbon content is apt for the various end
products we manufacture.
This business’s future is conditioned by surplus refining
capacity in Europe and the competitiveness of new refineries
located outside of the continent. Regulation is also impacting
the sector considerably, marked by increasingly restrictive
environmental and technical product specifications, including
stricter emissions limits and the requirement to make growing
use of biofuels.

Our aspiration is to remain abenchmark energy player inEurope. We are making progresson our operational optimisation
initiatives, while maximising the
production of biofuels in order toreduce greenhouse gas emissions.

One of our most important projects last year was thedismantling of the Cepsa refinery in Santa Cruz de Tenerife(Santa Cruz Verde 2030). That project is unique on accountof its scale and relevance and marks one of the biggest
industrial-to-urban land reconversion projects in Europe,so making it a symbol of the energy transition. That land
will be transformed and given a new environmental lease oflife, taking an energy and social sustainability approach. The
dismantling work is linked with the commissioning of a new
storage and distribution station in Granadilla Port, scheduled
for 2025.

In parallel, we are working on a range of short- and longterm initiatives at our energy parks to reduce our energy
consumption by investing in new technology. We are also inthe midst of far-ranging digital transformation to render ourenergy parks more competitive and spearhead the sector’s
technological transition.
We aim to be a top-level national player in the biofuel spaceby maximising our co-processing and production capacity,
increasing the value of our assets and striking alliances toensure the supply of advanced raw materials.

We want to lead the green hydrogen value chain by investing specificallyto satisfy the needs of our own processes, as well as demand for industrial
green hydrogen in southern Spain, in line with the European Union’s
ambitious objectives.
25

CHAPTER 1 Positive Motion

COMMERCIAL & CLEAN ENERGIES
2022 MILESTONES

Launch of the biggest greenhydrogen project in Europe
at our Energy Parks. We aregoing to build the largest greenhydrogen park in Spain: Andalusia
Green Hydrogen Valley, with 2 GW ofcapacity, slated for commissioning
between 2026 and 2027, which willproduce 300,000 tonnes of greenhydrogen a year.

Agreement to create the firstgreen hydrogen corridor
connecting northern andsouthern Europe. That corridor,
which is expected to be operationalin 2027, will help decarbonise theshipping industry and transport by
supplying green fuels to Algeciras Bay
and Rotterdam Port. The Dutch cityis the most important energy port inEurope, handling 13% of the continent’s
energy demand.

Commercial & Clean Energies provides customer
solutions, including management of B2B businesses in the
manufacturing, agricultural, aviation, lubricant, asphalt, gas
and electricity segments. It also develops decarbonisation
solutions for its customers by creating value chains aroundthe biofuel, hydrogen and renewable energy (solar and wind
power) businesses.
Our deep experience producing and supplying energy andour technological know-how place us ideally to lead the26

Seville, European capital for airtransport decarbonisation.
We supplied our airline customers withSAF (Sustainable Aviation Fuels) in
Seville airport for the first time in 2022.
Specifically, in November, over 200
flights headed for different destinationsin Spain and Europe made Sevillethe southern European capital for airtransport decarbonisation.

production of second-generation biofuels, so driving circular
economy ideals.
Against that backdrop, we plan to become the leading
supplier of SAF, underpinned by agreements with most of
the airlines. We are currently the Spanish aviation industry’s
number-two supplier.

2022 INTEGRATED MANAGEMENT REPORTIn 2022, the traceability of thesustainable fuel we sold for flights
taking off from Seville airport wascertified, for the first time in Spain,
under the International Sustainability
Carbon Certification (ISCC EU) system.
That certification covers our SAF
from production through tophysical supply.

Framed by our commitments to championing thedecarbonisation of the shipping industry and contributing toa circular economy, we successfully pilot tested advanced
shipping biofuels in Spain. We are now ready to sell thoseadvanced biofuels to our customers from the shipping sector.
We are one of Spain’s leading hydrogen producers and we
aim to lead the production of green hydrogen in Spain andPortugal by 2030. Our ambition, under the scope of our
Positive Motion strategy, is to be a key player in the importand export of this energy source between Europe, Africa
and the Middle East, leveraging the strategic location of ourfacilities on the Iberian Peninsula.
That ambition is evident in our plans to build the largest
green hydrogen development in Europe at our energy parks.
We will also develop a portfolio of solar and wind projects
in order to generate the renewable electricity needed to
produce that green hydrogen.
Elsewhere, creation of the first green hydrogen corridor
between northern and southern Europe will support theEuropean Union’s RePower strategy, which aims to guarantee
energy independence, secure supply and stimulate theproduction of clean energy. The corridor is a fundamental
step in our strategy, as hydrogen is one of the major enablersof our ambition to become a benchmark player in Europe’s
energy transition.

plants at our main productive facilities (powered by naturalgas), which mainly cover internal consumption needs.
It also supplies gas and power to industrial and service
sector consumers. This business is carried out in the Iberian
Peninsula, mainly in Spain. It also supplies some of our otherbusinesses, including Trading, Mobility & New Commerce,
Energy Parks and Chemicals.
The challenge here is to boost business volumes, the goal
being to expand our renewable generation capacity, in an
increasingly volatile market environment and in activities
heavily impacted by regulation. We are committing
strategically to new energy markets with growth potential,
such as renewable energies.
We are developing new renewable energy facilities in orderto help deliver the decarbonisation and climate changetargets announced in conjunction with our new Positive
Motion strategy. That pipeline of renewable assets will
cover our green electricity requirement and certify thevolume of power generated from renewable sources. In
2022, we obtained grid connection rights for photovoltaic
developments with installed capacity of 2.2 GW.
Lastly, we import natural gas into Spain and we complement
our gas supply activity with short-term trading activities.
Cepsa Gas Comercializadora, S.A. (70%-owned by the groupparent) principally supplies gas to industrial customers.

The Renewables, Gas & Power business has one combined
cycle power plant and seven combined heat and power

1.3.4 Sustainability, mobility andthe customer experience27

CHAPTER 1 Positive Motion

MOBILITY & NEW COMMERCE
2022 MILESTONES

Last year we provided an
additional fuel discount at
our Spanish service stationsof up to €0.30/litre, on topof other discounts, including
those offered under ouralliances with Carrefour and
Wizink. As a result, our retailWe launched the R’spiro
concept at our service
stations, offering our customers

Agreement with Endesa for the
installation of ultra-rapid chargers
at our service stations: in line withthe chance to take a quality meal
break, thanks to a broad range ofpremium products in a sustainable,
high-design space.

our Positive Motion strategy, in 2022
we began to install ultra-rapid chargers
that will enable our customers to charge
their EVs in just 20 minutes.

customers were able to benefit froman additional €0.20 discount for totalsavings of up to €0.50 per litre.

The Mobility & New Commerce business manages the transformation of mobility, seeking leadership in electric mobility anddeveloping digital commerce solutions that leverage its customer and service station networks.

We offer our customers sustainable energy solutions to cover
all their needs. We want the quality of our services and the customer
experience with us to be consistently memorable.

282022 INTEGRATED MANAGEMENT REPORTThe decarbonisation of road transport and end customer
mobility is driving us forward. We are building the largest
e-mobility ecosystem in Spain and Portugal, in partnershipwith Endesa, to meet our customers’ charging needs,
whether at home or on the road. Our ultimate goal is tocreate a network of ultra-rapid charging facilities with atleast one 150-kW charger every 200 kilometres on mainintercity roads.
The extraordinary fuel discounts offered at our service
stations in Spain of up to €0.30 per litre comprised: the€0.20 subsidy provided by the Spanish government, plus
the €0.05 universal discount which Cepsa offers all of its
customers and an additional €0.05 for members of Cepsa’s
loyalty programme. During the first quarter of 2023, weare offering our loyalty programme members a discount of€0.10/litre (borne entirely by the company) and an additional€0.02/litre discount for customers purchasing fuels from the
Optima range.
We plan to stimulate demand for green hydrogen incommercial road transport by placing hydrogen service

stations every 300 kilometres on the main roads connecting
Spain with Europe by 2030.
Cepsa’s service stations, which constitute the second-largest
network in Spain and Portugal, are set to be transformed
into ultra-convenient, digitally-friendly rest spaces andeateries in which our customers will encounter a broad
variety of services, including fresh food, drug store products,
e-commerce services with home delivery and sustainable car
washing, all in addition to multi-energy refuelling options.
We plan to launch a new loyalty programme with the main
aim of enhancing the customer experience. The goal is tobring in three million customers in four years, leveraging the
new CEPSAGOW app.
Lastly, Cepsa is creating a data-driven culture in parallel,using advanced analytics to transform the customer
experience. It will also use artificial intelligence (AI) in
decision-making processes so that it can offer end-to-end
services in real time.

1.3.4 Sustainability, mobility andthe customer experience29

CHAPTER 1 Positive Motion

TRADING
2022 MILESTONESNew organisational structure
at the Trading business: developing
the group position optimisation model.
The Trading business generates key value for the company,
procuring the raw materials needed by our productive
facilities and managing product storage and logistics, incoordination with the rest of the company’s business units.

It also gives us a foothold in international markets, gleaning
information about trends in product flows, prices andforecasts, crucial for strategic planning.

Through this business we support
and generate value for all of Cepsa’s
businesses, likewise extracting value
from our own portfolio and our deep
knowledge of the crude markets, leveraging
our full experience to constantly search
for new business opportunities.

The new organisational structure reinforces the strategiclines already existing within the Trading business:
optimisation of the company’s assets by developing the
trading optimisation model, creation of the Singapore office
to globalise the business and manage flows across several
markets and development of the biofuel trading business.
Trading activity within the Crude & Products businessprocures the raw materials needed by our production
facilities and manages storage and placement in the productchannel, in coordination with the rest of the company’sbusiness units. It also coordinates product supply activities
with the Energy Parks and Commercial & Clean Energies
businesses, including the supply of biofuels. It manages the30

shipping aspect, ensuring compliance with safety protocols,
specifically the guidelines set by the Vetting unit, which is
responsible for assessing and approving the tankers needed inthis business.
Our Gas, Energy & Environmental Product Trading businessline has access to the wholesale energy, gas and carbon
markets. That connectivity along the value chain is essential
to maximising the flexibility of Cepsa’s energy portfolio andmanaging its emissions.
Lastly, we bring our vast know-how and experience tomanaging volatility and constantly searching for opportunities
to monetize in the futures and derivatives markets.

2022 INTEGRATED MANAGEMENT REPORT

1.3.3.2 Exploration & Production
2022 MILESTONES

We participated in the discoveryof an important offshore field in
Suriname, the biggest discovery
in several decades. We have a 25%

We reached an agreement with
Sonatrach for the extensionof the BMS contract in Algeria
for five years: that agreement wasinterest in that block and contributed
to the exploration work together with
our partners, Apache and Petronas.

approved by the Spanish Cabinet on
4 December 2022, marking a major
milestone for the company and thecontinuity of its operations in Algeria.

The Exploration & Production unit, which is present in North
Africa, the Middle East and Latin America, explores for,develops and produces oil and natural gas.
We currently have a stake in the second-largest oil fieldin Algeria.
Our asset in Abu Dhabi, where we have an operating
concession until 2058, is currently at the development phaseand is expected to reach peak production in 2025. SARB’s
output (Abu Dhabi) reached 120,000 bopd in July, five months
ahead of schedule.

For the first time, the Peruvian
assets earned triple certification
under ISO 9001, 14001 and 45001, while
the carbon footprint certificates at all
our fields include Scope 3 emissions(indirect emissions in the value chain).
All of which with the aim of raising the
profile of our transparent management.

Last year we also participated in a deep-water exploration
drilling campaign at Block 53 in Suriname, one of the highest
potential areas discovered in recent years. We have a 25%
interest in that asset. The drilling work confirmed thepresence of an active oil system in the south-eastern area ofthe block. Work is underway to evaluate the readings and therock and fluid samples taken.
We participate in the above assets using a range of formulas,
including as operator, joint venturer and lead technicalpartner in non-operated assets. The oil and gas we produce ismainly sold by our Trading teams.

In 2022,
we continued
to focus on thecost streamlining
process embarked
on in 2020 and 2021
in order to eke out
efficiency gains andinvest highly selectively
in projects.

31

CHAPTER 1 Positive Motion

In the current crude price climate, coupled with the cut
in OPEC+ production quotas and ongoing search for
operational excellence, the Exploration & Production businessis a cash generator, reinforcing the company’s financial
muscle.

In terms of its strategic direction, the Exploration &Production business is focused on maximising the value of
its existing portfolio. Framed by that strategy, in the coming
years, investments will focus on our existing assets with aview to maximising their value and efficiency.

KEY EXPLORATION & PRODUCTION ASSETSUNITED ARAB EMIRATESALGERIA•C epsa has a 20% interest in the SARB, UMM
LULU, Bin Nasher and Al Battel offshore
fields, which are non-operated assets, underconcession. In production since 2019.

• Rhourde el Krouf (RKF) crude oil field.
Located in the Berkine Basin. 49%-owned
by Cepsa, joint operation, in production.
Onshore.

•C epsa has a 13% interest in Abu Dhabi Oil
Company CO, LTD (ADOC) through Cosmo
Abu Dhabi Energy Exploration & Production
CO, LTD (CEPAD). Four offshore crude oilfields in production (Uhm Al Anbar, Neewat
Al Galan, Mubarraz and Hail), located off the
Abu Dhabi coast. Not operated.

• Ourhoud crude oil field. Located in the
Berkine Basin. 37%-owned by Cepsa, joint
operation, in production. Onshore.

PERU• Block 131: 100%-operated by Cepsa.
Onshore and in production. Located in the
Ucayali Basin.

• BMS crude oil field. Located in the Berkine
Basin. 75%-owned by Cepsa, joint operation,in production. Onshore.
• Timimoun natural gas field. Located in the
Timimoun Basin, 11%-owned by Cepsa, joint
operation, in production. Onshore.

COLOMBIA•O nshore. Crude oil. In production:• Caracara (70%), located in the Los
Llanos Basin, operated by Cepsa.
• La Cañada Norte (17%), located in the
Magdalena Upper Valley. Not operated
by Cepsa.
• Llanos 22 (55%), located in the Los
Llanos Basin. Operated by Cepsa.

32

SURINAME• Exploration Block 53 with a discovery
under assessment. Located in the GuyanaSuriname Basin. 25%-owned by Cepsa.
Deep-offshore asset. Not operated.

MEXICO• Three exploration blocks, Blocks 16, 17
and 18. Located in the Tampico-Misantla
Basin. Not operated by Cepsa (20% interest).
Shallow-water offshore assets.

2022 INTEGRATED MANAGEMENT REPORT

1.3.3.3 Chemicals
2022 MILESTONES

Launch of NextLAB and
NextPhenol. The Chemicals

Acquisition of 28.56% of
DETEN Química, S.A. Cepsa

business launched a new range ofsustainable products, introducing
renewable and recycled raw materials
into production of its two main
products - LAB and phenol - for the
first time.

Química S.A increased its ownershipinterest in the Brazilian chemicals
company to 100%.

ISCC PLUS (International
Sustainability and Carbon
Certification) certification. We
obtained ISCC PLUS certification at
all of our production plants globally,
allowing us to produce the new rangeof sustainable products, NextLAB and
NextPhenol.

Cepsa’s Chemicals business is the leading
developer of chemical products andprocesses that improve people’s lives andenable businesses all around the world.
Our chemicals facilities in Spain are located close to our energyparks and process highly value-added raw materials.
We have chemicals plants in Spain, Canada, Brazil, Nigeria andChina and oleochemical facilities in Indonesia and Germany.
Our products have a number of uses, including as raw material
for detergents, resins, electronic parts, synthetic fibres andpharmaceutical products, among others.

We are committed to research, development and innovation toguarantee the sustainability of our industry and the quality ofour products. We are present in the everyday lives of millions
of people and in the value chain of virtually every industrial
sector. We are strategically committing to circular economy
criteria to rationalise the use of inputs in order to build a moresustainable, efficient and just world.

We are the world-leading producer of LAB (linear alkylbenzene)
and the number-two global producer of phenol/acetate, underpinned byour technological leadership in both cases.

33

CHAPTER 1 Positive Motion

Our LAB is an essential raw material for the production of
biodegradable detergents, while our phenol business line

supplies the leading producers of polymers for the automotive,
electronics and construction industries.

In 2022, we launched our new family of sustainable products,
NextLAB and NextPhenol, which use renewable and circular raw
materials in order to help our customers hit their sustainability
targets. For the first time in history, we supplied Unilever with themaiden LAB made from renewable sources for the manufactureof linear alkylbenzene sulphonate (LAS), the surfactant used inbiodegradable detergents.
In the LAB line in particular we are proud to be the joint
owners of the best manufacturing technology in the world. We
are leading its industrial implementation (DETAL Project at
the chemicals plant in Puente Mayorga), which is enabling us
to increase our production of LAB and solidify our leadership,
underpinned by a safer, more efficient and more sustainable
process which optimises the use of raw materials and34

electricity, while reducing the generation of emissions andwaste and the consumption of water. Puente Mayorga was
the first LAB plant in the world to take this important step,
becoming the first chemical facility to use next-generation
DETAL technology. DETAL technology is also improving thequality and versatility of our LAB.

2022 INTEGRATED MANAGEMENT REPORT

1.3.4 Sustainability, mobility and the customer experience
GRI 3-3, 2-29

2022 MILESTONES

Development of new
sustainability-, mobility- andcustomer experience-related
services. 2022 highlights included
the alliance struck with Endesa
for the construction of an end-toend solution for both companies’
customers with the ultimate goalof deploying the largest ultrarapid EV charger system in Spain
and Portugal; the development,
together with Acciona, of a networkof battery exchangers across ourservice stations; and the launch of
our new premium service stations,
new convenience stores and theR’spiro cafeteria brand.

Customer discounts.
We offered our customers a fueldiscount of €0.30 per litre until
the end of 2022 to mitigate theexceptional surge in energy prices(including the subsidy provided by
the Spanish government).

Alliance with Cicar, the leading
car rental company in the Canaries, toaccelerate the transition to sustainablemobility on the islands.

Alliances with Iberia, Binter,
Vueling, Air Nostrum, Tui andEtihad for decarbonising air transport,

Offset of heating oil emissions byinvesting in asset reforestation
projects in Spain and abroad with thespearheading the supply of SAF(Sustainable Aviation Fuels) andreducing carbon emissions by up to
80% relative to traditional fuels.

aim of giving those forests the massneeded to absorb the carbon dioxide
emitted.

We place our customers at the heart of our business strategy. Our customer priorities include reinforcing our long-term
relationships with them by offering compelling energy and commercial solutions and improving their satisfaction levels
consistently.
Our Customer Relationship Policy sets out the commitments underpinning the provision of a unique value proposition and optimal
standards of service and care.
Those commitments guide our actions and improvement plans, focusing on:
Offering an environmentally-sustainable and respectful proposition underpinned by a unique experience and high quality,
excellence and safety standards.
Managing our customer relationships ethically and responsibly, listening to their needs and tailoring our business activities
to each of our markets’ social and cultural realities.
Investing in new digital, sustainability and mobility solutions conducive to facilitating the energy transition, reducing thecarbon footprint and enabling the circularity of our customers, engaging them in those thrusts and garnering their loyalty.
Our challenge is to make our customers trust and recommend us more and more by continually boosting their satisfaction levels.
We analyse trends in their feedback, needs and expectations to fine-tune our processes, enhance our contact points and propose
new services in order to boost their loyalty.
35

CHAPTER 1 Positive Motion

Some of the most noteworthy measures taken in 2022:
Discounts in addition to those provided by the Spanish government continuously from 1 April until the end of theyear. We offered all of our customers a fuel discount of €0.25 per litre, including the €0.20 subsidy provided by thegovernment, giving carriers and members of our loyalty programme a bigger discount of €0.30, along with otherbenefits.
Advances on the digitalisation of our services including upgrades of the Cepsa app, making it one of the fastest-growing
apps in Spain, the Starressa app for the virtual management and use of cards, paperless receipts and implementation ofa market-leading CRM.
Improvement of our Customer Experience programme by placing QR codes at our service stations, making it easier forour customers to share their feedback with us.

We measure our customers satisfaction constantly throughsurveys and qualitative studies with focus groups. We track
specific indicators, including our net promoter score (NPS),
to detect shifting needs and expectations. Note that Cepsa
increased its NPS by over two points compared to 2021.
In line with our Positive Motion strategy, we have embarked
on service station transformation, opting for the ultraconvenience store approach: we launched the R´spirocafeteria and bakery brand, e-commerce services and retailpoints offering a drug store assortment, a range of takeaway
food and lockers, in partnership with Amazon.

36

We improved our vehicle washing service by using recycledwater, solar energy and biodegradable soap, accompanied by
the launch of an innovative payment system using our app
and bank card, for both manual and automatic car washes.
Framed by our commitment to diversity and inclusion, we
gave visibility to the LGTBIQ+ movement, flying the pride flagfrom our service stations for the month of June.

2022 INTEGRATED MANAGEMENT REPORTHELPING OUR CUSTOMERS REDUCE THEIR CARBON FOOTPRINTSWe help our customers reduce their environmental impacts
by selling them more sustainable products. In 2022, we
successfully supplied and pilot-tested shipping biofuels andstruck alliances with several airlines for the supply of SAF(Sustainable Aviation Fuels). Our ambition to be leader in theseclean fuels is tangible in our goal of producing 0.8 million
tonnes by 2030.

We champion sustainablemobility. We have started
to install a new and pioneeringintercity EV charging networkin Spain and Portugal by fitting
our service stations withultra-rapid chargers.
We also continued to develop
more sustainable fuelssuch as our range of Optima
fuels, compressed naturalgas (CNG) and vehicularnatural gas (VNG).

We sell more sustainable lubricants with our Fuel Economy,
Hybrid and Biodegradable ranges and greener asphalts under
our Regener and Betun Masai trademarks.

We launched a project to offset the emissions derived from ourcustomers’ heating oil consumption by financing reforestation
projects.

Appendix 3.12 Our clients

CUSTOMER AND PARTNER DECARBONISATION PROGRAMMEWe are pioneering a customer and partner decarbonisation programme, building a new ecosystem that goes
far beyond conventional transactional relationships to offer and share unique solutions in the world of energy,
taking a holistic approach to the challenges that are emerging. Faced by those challenges, we are putting thecustomer front and centre, taking a cross-cutting perspective, offering singular, unconventional interaction in orderto actively help them with their energy transition pathways. By way of illustration, one of our customers who used
to regularly purchase and use gas oil in the traditional transactional manner is now receiving end-to-end advice
from us on how to decarbonise, along with a set of energy products and carbon credits which, over time,
will converge towards a net zero net emissions solution.

37

CHAPTER 1 Positive Motion

1.3.5 Global presence
GRI: 2-1

BELGIUM &THE NETHERLANDSCANADAGERMANY
SPAIN

ITALY

UNITED KINGDOMFRANCEPORTUGALMEXICOSURINAME

MOROCCOCHINA
INDONESIAUAECOLOMBIA
ALGERIAPERU

SINGAPORE
BRAZIL

ANDORRA& GIBRALTARNIGERIA

ALGERIA• Exploration and Production• Distribution and marketingof petroleum products
ANDORRA & GIBRALTAR• Distribution and marketingof petroleum products
BELGIUM & THE NETHERLANDS• Distribution and marketingof chemicals products• Distribution and marketingof petroleum products
BRAZIL• Chemicals
CANADA• Chemicals
COLOMBIA• Exploration and Production
CHINA• Chemicals
FRANCE• Distribution and marketingof petroleum products

Chemicals

INDONESIA• Chemicals
ITALY• Distribution and marketingof chemicals products
MEXICO• Distribution and marketing of
petroleum products• Exploration and Production• Distribution and marketingof chemicals products• Chemicals

SINGAPORE• Trading
SPAIN• Refining• Distribution and marketingof petroleum products• Chemicals• Distribution and marketingof chemicals products• Gas and Electricicty• Trading• Corporation• Renewable energy generation
SURINAME• Exploration and Production

MOROCCO• Distribution and marketingof petroleum products

UAE• Exploration and Production• Chemicals

NIGERIA• Chemicals

UNITED KINGDOM• Distribution and marketingof chemicals products• Distribution and marketingof petroleum products

PERU• Exploration and Production

Exploration and Production

Distribution and marketingof chemicals products
38

GERMANY• Distribution and marketingof chemicals products• Chemicals

PORTUGAL• Distribution and marketingof petroleum products

Refining

Gas and Electricicty

Distribution and marketingof petroleum products

Trading

Corporation

Renewable energy generation

2022 INTEGRATED MANAGEMENT REPORT

1.3.6 Innovation, digitalisation and cybersecurity
1.3.6.1 Innovation, enabling transformation
GRI: 3-32022 MILESTONES
Circular Waste Recycling Project.
With this initiative we are pursuing threegoals: introducing and processing flows
from waste conversion at our energyparks; recovering our own waste andreintroducing it into the value chain; andstudying the technical and economic
viability of producing G-II oil lubricantsfrom used materials.

Reorganisation of the R&D
structure. To drive our Positive Motion
strategy forward, we have set up an
Energy Transition Department within the
Research Centre to focus on research
into energy transition enabling technology
and a New Undertakings Department
to facilitate agile investment in forwardlooking businesses and technologies.

Key indicators

2022

2021

R&D projects underway (nº)

56

48

50%

44%

75

70

Innovation projects focused on energy transition (%)

R&D collaboration partners (nº)

39CHAPTER 1 Positive Motion

Underpinned by our Positive Motion, we are committed totransforming our businesses by focusing on the generationof renewable energy, biofuels, green hydrogen and bio-based
chemical products, decarbonisation and enhanced productcircularity. To that end we are championing, on our own andthrough partnerships, projects designed to deliver moresustainable alternatives for our products and services.

Our transformation thrust requires the application of innovative
solutions for adapting our manufacturing processes byfostering the use of renewable power generation technologies.
We were granted 11 new patents in 2022, bringing the total
to over 50 across 20 different countries. Intellectual property
management is a cornerstone of our innovation initiatives in abid to protect the progress we make and maximise returns.

OUR RESEARCH CENTRE
We are working on high-impact research projects for our
production centres and sales units. In tandem we provide
our customers, particularly in lubricants and specialties,
with technical assistance.
We have laboratories, next-generation equipment andpilot facilities capable of replicating the processes weundertake in our production centres, mainly at our energyparks and chemicals facilities. Those capabilities have40

enabled us to create more efficient and environmentallyfriendly productive processes, develop new fuels andunlock valuable projects.
In 2022, we undertook a number of research projects
focused on developing new sustainable chemical
products, identifying biological alternatives for fossil
fuel-based products and searching for more eco-friendly
production systems.

2022 INTEGRATED MANAGEMENT REPORTKEY INNOVATION AND ENERGY TRANSITION PROJECTS
•

•
•
•
•
•

SOLfuture - project for developing photoreactors togenerate value-added fuels and products from CO2 incollaboration with another five partners (IMDEA Energía,
ICIQ, ICMM-CSIC, CIEMAT and APRIA).
Electrification of steam furnaces and boilers at theenergy parks.
Use of microalgae as a source of advanced third- andfourth-generation biofuels.
Circular Project. Study into plastic pyrolysis and of the oilpyrolysis co-process at pilot facilities.
Study into sources of biomass as substitutes forfossil-fuel crudes.
Development of applications for the inline near infrared
spectrocospy (NIR) technique for real-time optimisation of
crude distilling at the energy parks.

•

•

•
•

Study to measure the impact of colour on B7 biodiesel
blends (diesel blended with 7% of bio-based fuels) withadvanced bio flows such as waste produced by thebiodiesel industry (TME and POMEME).
Study into the co-processing of second-generation
biomaterials such as used household oils at thehydrodesulfurization pilot plant for later testing at theindustrial units.
Recovery of solid urban waste as a source of fuel for theenergy parks.
Multi-renewable-fuel service station. Biogas, greenhydrogen and renewable electricity refuelling.

KEY COLLABORATIONS
Cepsa collaborates end to end with its outside partners on
joint innovation projects.
We entered into more than 50 agreements in 2022 withdifferent partners, including international research centres,
start-ups, technology licensors and other companies, toresearch new avenues for innovation.

Our R&D department sponsored and hosted two post-doctoral
research initiatives included in the Marie Skłodowska-Curie
Actions excellence programme for the study of disruptive
plastic recycling technology.
Back in Spain, Cepsa applied for financing for projects
related with the use of sustainable raw materials and thedevelopment of bio-aviation fuel.

Cepsa’s Research Centre participated in two projects financed
under the umbrella of Horizon Europe related with plastic
waste recovery and fuels made from bio-based raw materials.
41

CHAPTER 1 Positive Motion

1.3.6.2 Digitalisation, driving growth
GRI: 3-32022 MILESTONESSUICAT - Development
of digital tools for HDS(Hydrodesulphurisation)
unit optimisation. This tool allows
us to optimise cycles and anticipate
atypical patterns and the end of thehydrotreater’s cycle. We also developed
a predictive tool that supports thefour HDT (Hydrotreating).

We launched our second digitaltransformation thrust. We defined
our new strategy for the developmentof innovative solutions for 2023-2027,
with digitalisation as the core
growth engine.

Key indicators

Digital transformation projects1 (nº)

Digital skills training hours (nº)

1

2022

2021

333

282

64,15476,046The digital transformation project number includes the cumulative number of projects undertaken since 2018.

We know well that digitalisation drives rapid and efficientinnovation and is a prime catalyst for our energy transition
projects.
Positive Motion seeks to boost digital transformation in ourquest to become a data-driven and agile delivery company inwhich decision-making is based on data by making the most ofits value and adopting new ways of working.

42

Transformation of our energy businesses requires setting up
innovation processes and embedding them in all our operations
and production streams. To that end, in 2022, we launched a
new digital transformation strategy (2023-2027), articulatedaround four core areas:

2022 INTEGRATED MANAGEMENT REPORTOpen innovation to generate new opportunities by joining forces with technology partners andcollaborative ecosystems to help us apply new technology, thereby driving innovation.
Artificial intelligence (AI) and data analytics to focus our efforts on data governance anddemocratisation and AI applications, approaching data as a core strategic asset. We are striving to create
an ecosystem of data visualisation and business intelligence tools with a focus on decision-making.
The internet of things (IoT) to enhance the customer experience at our service points, a cornerstone of
our Positive Motion strategy, and develop advanced industrial operations, thanks to the deployment andscaling up of smart devices to generate new information and automate processes.
Human Experience to design experiences that empower employees and set us apart vis-a-vis ourcustomers.

We measure our employees’ digital maturity in order to study
and propose digital upskilling action plans as part of our
Digital Mindset project.
The driving force behind that digital upskilling effort is toenable our employees handle data and new technologies moreautonomously. One example is the Cepsa Digital Experience(CDX) training programme, designed to give staff knowledge
and skills related with the digital transformation thrust by
taking an experiential approach. The programme’s third editionin 2022 took in 240 new students (‘hickers’) to bring the total
participation count to 1,300. Last year we added streamed
content to make it more flexible.

In 2022, we also launched CDX for managers, providing training
on a range of digital technologies (data management, cloud computing,
AI and IoT). The idea is to get them to layer digital acumen into their visionof the business so as to be able to detect opportunities.
Another digitalisation initiative being rolled out is our data
democratisation project under which employees are being
given tools to enable them to access data in a simple andorganised manner.

We also developed initiatives for other businesses and areas of
the company such as Cepsa Gow, Datamart IGM FIAB and theInspections Platform.

ACCOLADESThe Digital Mindset project earned Cepsa second prize in the
CIONET awards, specifically in the Digital Talent category.
We were also runner-up in the AMETIC Digital Skills Awards,
again for Digital Mindset, and in the Forbes Innovation
by Kyndryl Awards, for the SUICAT project.

43

CHAPTER 1 Positive Motion

1.3.6.3 Cybersecurity
GRI: 3-32022 MILESTONES

Operational Technology (OT)
Cybersecurity Programme.

Improved cloud security incorporate cloud environments

We developed additional protection
capabilities, notable among which arethose related to security monitoringand obsolete system renewal.

by deploying anomalous activity
monitoring and detection solutions
that are analysed 24/7 by our Security
Operations Centre (SOC).

The current digital environment, marked by massive data usage and exponentially growing hyperconnectivity, is fuelling the needto safeguard the confidentiality, integrity and availability of information. That task is a priority component of our digitalisation
strategy.
We have drawn up a specific Cybersecurity Policy which defines the digital systems strategy, in turn yielding a number of different
action plans currently under development.
Our cybersecurity model, which is ISO 27001 certified1, is underpinned by a suitable technology risk management approach andthe deployment of top-notch, innovative technical services and solutions.
Our corporate cybersecurity area is responsible for the model’s performance and implementing our dedicated master plan, whichis sponsored by senior management. Twice-yearly, we review and report on our cybersecurity risks to the Audit, Compliance,
Ethics and Risk Committee, which endorses any new initiatives and certifies delivery of the planned milestones.
Our cybersecurity dashboard, which consists of key indicators related with our strategy and our current detection, prevention andresponse capabilities is a key management and reporting tool. We perform specific measurements in order to monitor and manage
the mitigating measures put in place to guard against major threats.

Cepsa holds an A-rating from RiskRecon2 for its approachto cybersecurity, which is the highest rating and means it is above
the 95% percentile in its sector.

The scope of that certification is the entire company.

1 

A Mastercard company and leading provider of automated cybersecurity risk assessments.

2 

44

2022 INTEGRATED MANAGEMENT REPORTCYBERSECURITY PROTECTION MEASURES
Increased boundary of overall coverage by adding supervisory and control
solutions and capabilities.
Enhanced user-level protection: device-specific cybersecurity, hard disk encryption,
USB port blocking and data leakage prevention.
Reinforcement of two-factor authentication with a focus on remote access, where
measures have been beefed up.
Process automation based on artificial intelligence (AI) and machine learningin order to detect potential malware.
Enhanced response capabilities in the event of potential cybersecurity events which
are tested periodically by carrying out a range of drills.

FOSTERING A CULTURE OF CYBERSECURITY
Over the course of 2022, we upgraded the mandatory cybersecurity training our professionals have to complete and moved forwardwith the initiatives outlined in our annual awareness plan. Highlights:•••

Simulation of real attacks like phising, vishing (by phone) and smishing (instant messaging), as well as the use of
fraudulent USB devices.
Training imparted over the awareness platform.
Multichannel publication of regular knowledge pills to raise awareness.

45

02
GOOD GOVERNANCE

46

2.1 Corporate governance48

2.2 Our sustainability management54

2.3 Sustainability-aligned policies

59

2.4 Risk management60

2.5 Proactive stakeholder engagement

63

Good
governanceCHAPTER 2 Good governance

2.1 CORPORATE
GOVERNANCE

GRI 2-9, 2-10, 2-11. 2-13

Key indicators

2022

2021

Board members (as at 31 December) (nº)

10

10

7

7

97%

96%

Board meetings (nº)

Board meeting attendance (%) 1

In 2022, our Board of Directors paid close attention to theunfolding geopolitical challenges and market environment,
while reinforcing our ESG governance in order to accelerate
our sustainability transformation.

Our corporate governance model is articulated around therecommendations made in Spain’s Code of Good Governance ofListed Companies, as applicable, prevailing company law andprinciples of ethics and transparency, framed by international
standards and best practices in corporate governance.

2.2 Our sustainability management

PRIORITISATION OF CYBERSECURITY-RELATED RISKS
The Board of Directors, through its steering committee, the Audit, Compliance, Ethics and Risk (ACER) Committee, isincreasingly paying attention to the management and oversight of cybersecurity risks, which are reviewed quarterly,
framed by the corporate risk map. Against that backdrop, we approved a new Cybersecurity Policy last year. In parallel,
our ACER Committee prioritised assessment of Cepsa’s exposure to key technology risks, including data security andcybersecurity risks.

Attendance was over 97% in 2022, with just one director absent from the meeting of 26 July and one absent from that of 15 December; both authorizing otherattending directors to act as their proxies.

1 

48

2022 INTEGRATED MANAGEMENT REPORTGOVERNING BODIESOur most important governing bodies are the General
Shareholders’ Meeting, the Board of Directors and the Board’s
three advisory committees.

Cepsa has two main shareholders: Cepsa Holding, LLC, with a
61.36% interest, which is controlled by Mubadala Investment
Company, and Matador Bidco, S.A.R.L., which owns 38.41%, andis controlled by The Carlyle Group.

Shareholder representation at the General Meeting is
proportionate to their ownership interests. Along with the Boardof Directors, it is the company’s highest governing body.

GOVERNING BODY STRUCTURE
General Shareholders’ Meeting
As set down in the company’s Articles of Association, the General
Shareholders’ Meeting is the company’s ultimate decision-making
body. It resolves on all matters falling under its remit undercompany law or the company’s Articles of Association.

Board of Directors
Except for matters reserved exclusively for the shareholders ingeneral meeting, the Board of Directors is the company’s highest
governing body. Its duties include overseeing and controlling themanagement and performance of the company’s businesses,
approving its plans, policies, objectives and strategies andensuring due execution and implementation of the latter. The
Board delegates the company’s day-to-day management in
the CEO in order to focus its work on its general supervisory
function, directly assuming the related responsibilities.

Audit,
Compliance,
Ethics andRisk (ACER)
Committee
This Board committee’s duties
include supervision of theinternal audit function, theinternal control, complianceand risk management
systems, dealings with thestatutory auditor and the due
preparation and integrity of
the financial and non-financial
information of the company
and its group.

Nomination andCompensation
Committee

Strategy andSustainability
Committee

This Board committee
oversees the selection,
appointment, re-election andremoval, as warranted, ofthe company’s directors andkey management personnel.
It is tasked with analysing,reporting on and proposing
remuneration policy for
those individuals and making
proposals to the Board
regarding decisions fallingunder its remit.

This Board committee provides
the Board with expertise andadvice to enable the latter toperform its supervisory rolebetter, especially in relation
to matters that could havean impact on the company’s
strategic management,
businesses or investments,
ensuring that sustainability
perspectives and priorities
are at all times duly factored
into all strategic and businessdecision-making.

49

CHAPTER 2 Good governanceCepsa’s Strategy and Sustainability and ACER Committees are tasked withoverseeing decision-making and ESG management.
2.2 Our sustainability management

At the executive level, there are two committees in charge of managing the company’s day-to-day operations:Management Committee

Investment and Contracts Committee

This executive body is responsible forday-to-day management of all of Cepsa’s
businesses, its strategic organisation andcoordination and integration of all economic,
social, environmental and ethical aspects
into all high-level decision-making. It iscurrently made up of 12 heads of the various
business lines and corporate functions, aswell as the CEO.

The responsibilities assigned to this internal
committee include reviewing and deciding oncontracting and investment related decisions,subject to certain thresholds stipulated in
the Company’s Delegation of Authority. It
also monitors the scope and development ofinvestment projects underway and any budget
deviations affecting projects under its remit.

In order to foster and support diversity, we also have a Diversity and Inclusion Committee, which is responsible
for overseeing the implementation and development of the diversity and inclusion strategy and programme.

502022 INTEGRATED MANAGEMENT REPORTCOMPOSITION OF THE BOARD OF DIRECTORS AND ITS BOARD COMMITTEESThe Board of Directors is made up of 111 members. As at 31 December 2022, it consisted of 10 directors, as there was one
vacancy2 at year-end. Seven of those directors are proprietary, one is independent, another is executive and the last qualifies as‘other external’.

Name

Board ofDirectors

Executive/
Nonexecutive

Audit,
Compliance,
Ethicsand RiskCommittee

Ahmed
Yahia 3ChairmanNonexecutive

Marcelvan Poecke

Vice
ChairmanNonexecutive

MaartenWetselaar

Chief
Executive
Officer

ExecutiveÁngelCorcóstegui

MemberNonexecutive

Alyazia
Al Kuwaiti

MemberNonexecutive

Saeed
Al Mazrouei

MemberNonexecutive

Joost
Dröge 4

MemberNonexecutive

MarwanNaim Nijmeh

MemberNonexecutive

Bob
MaguireMemberNonexecutive

Jacob
SchramMemberNonexecutive

Jörg
HäringNon-Director
Secretary

Secretary

JoséTéllezNon-Director
DeputySecretary

DeputySecretary

Nomination
and Compensation
Committee

MemberStrategyand Sustainability
Committee

Director
category

Length ofservice

Chairman

Proprietary

Since el
04/02/2021

No

Majorityshareholder

Member

Proprietary

Since el
15/10/2019

No

Minorityshareholder

MemberExecutive

Since
01/01/2022

No

Independent

Since
01/02/2016

No

Member

ProprietarySince
18/01/2016

No

Majorityshareholder

Member

ProprietarySince
13/11/2018

No

Majorityshareholder

Member

Proprietary

Since
15/10/2019

No

Minorityshareholder

Proprietary

Since
15/10/2019

No

Majorityshareholder

Proprietary

Since
15/10/2019

No

Minorityshareholder

Other
external

Since
27/10/2022

No

Chairman
Chairwoman
MemberMemberMemberMemberSecretary

Secretary

Minoritygroup
representation

Dutiesrelatedwith ESG
impacts

Stakeholder
represented

Yes

Since
07/06/2021
Since
24/10/2014

On 27 October 2022, the company’s shareholders resolved to increase the number of directors to 11 and appointed Jacob Schram to the Board in the category of‘other external director’, albeit with no ties to the main shareholders.

1 

On 16 March 2022, the company’s shareholders accepted the resignation of Musabbeh Al Kaabi, so creating a vacancy on the Board of Directors. As at 31 December
2022, the vacancy created by the departure of Mr. Al Kaabi remained open.

2 

Mr. Ahmed Yahia has been the company’s chairman since 4 February 2021. He is an external proprietary director and represents the majority shareholder. He is
therefore a non-executive director.

3 

4Joost Dröge resigned from the Board of Directors and, by extension, the Strategy and Sustainability Committee on 1 February 2023. That same day, the company’s
shareholders resolved, in general meeting, to appoint Gregory Nikodem to its Board of Directors and the Board in turn named him member of the Strategy andSustainability Committee.
51

CHAPTER 2 Good governance

The Board’s profile is markedly international and all of the directors
bring extensive professional track records and expertise from the energy,
finance, manufacturing and sales sectors.
HOW THE MEMBERS OF THE COMPANY’S GOVERNING BODIES ARE SELECTED
The company’s shareholders are tasked with appointing
or re-electing directors at the General Meeting based ona recommendation by the Nomination & Compensation
Committee.
The Nomination & Compensation Committee is in charge of
selecting the most suitable candidates for the various positions
on the Board of Directors and its three committees.
If there are vacancies on the Board, motions for theappointment of new directors are submitted at the General
Meeting for ratification.
When selecting candidates, the committee considers a rangeof attributes, including the diversity of skills and expertisethey bring, their ability to devote the necessary amount oftime to the post and their knowledge of matters of particularimportance to the energy business (industrial, technical andfinancial acumen, among others).
An effort is made to ensure the Board’s composition iswell balanced, marked by a wide majority of non-executive
directors.
The members of our ACER Committee are appointed in lightof their skills, expertise and professional experience in theareas of accounting, auditing, internal control and financial
and non-financial risk management and control. Each member
must bring financial expertise and at least one must meetthe definition of financial expert stipulated in the ACER
Committee’s regulations.

All director candidates must be professionals of proven integrity
whose conduct and professional trajectories are aligned with theprinciples enshrined in Cepsa’s Code of Ethics and Conduct and its
vision and values.
522022 INTEGRATED MANAGEMENT REPORTOUR MANAGEMENTManagement Committee

BUSINESSES

Maarten Wetselaar
CEO

FUNCTIONSPierre-Yves Sachet
Mobility & New
Commerce

Carlos Barrasa
Commercial &Clean Energies

Carmen de Pablo
CFO, Strategy andSustainability

Bettina Karsch
Human
Resources

Savvas Manousos
Trading

Antonio Joyanes
Energy Parks

Jörg Häring
Legal & Assurance

Jose Manuel Martínez
Technology,
Projects & Services

Paloma AlonsoChemicalsÁlex Archila
E&P

Matteo Vaglio
Transformation
OfficeJuan Llobell
Communication& IIRR

The fact that our management team boasts executives whobring deep experience in the energy sector and extensive
international track records places us in an ideal position to
spearhead the energy transition in Spain and Portugal andtackle the trends that are shaping our sector’s key successfactors.
Our management team’s goal is to continue to drive earnings
growth, while offering a better customer experience and driving
exemplary efficiency and safety results. We are designing moreÍñigo Díazde EspadaFoundationuser-friendly, inclusive and intuitive organisational interfaces
and cross-company reporting structures. We are alsoprioritising ESG matters in crucial agendas all across the firm.

Appendix 3.2 Corporate
governance53

CHAPTER 2 Good governance

2.2 OURSUSTAINABILITYMANAGEMENTGRI: 2-9, 2-13, 2-14, 2-22, 2-23, 33

2022 MILESTONES

Creation of the Strategy andSustainability Department, having

Recognition in benchmark
international ESG ratings,

merged the Strategy and ESG areas,
whose mission is to ensure correct
execution of the sustainable transition
implied by Positive Motion.

taking the top spots in the
Integrated Oil & Gas sector

Launch of the company’s
Sustainability Plan to drive
the implementation of Positive
Motion.

Sustainability lies at the heart of our new values. We want to make progress on the energy transition by having a positive impact
on our surroundings and meeting our stakeholders’ expectations.

SUSTAINABILITY PLAN
The Sustainability Plan emanates from our Positive Motion strategy so as to have a positive impact
on people, our customers, the environment, society and the economy as a whole. It is a cross-cutting
framework designed to deliver positive impacts for society and mitigate our negative impacts. It is
underpinned by ambitious commitments and a solid roadmap.

Our cross-cutting, multidisciplinary sustainability teams
are playing a vital role in accelerating the organisation’stransformation and generating awareness.
We have integrated the sustainability management effort into
the Strategy and Sustainability Department, which reports
to the Finance Department, to help implement our businessstrategy shift towards a more sustainable model and enhance
our positive contribution to society.
We have set up a company-wide management model to help
Cepsa’s management take cross-cutting decisions on a timely
basis. To articulate that model we have created a number of
54

MORE INFORMATION

multidisciplinary committees and taskforces to manage our
performance along different dimensions.
That management model is coordinated by the ESG Steering
Team, made up of the heads of the various businesses andcorporate functions. Our taskforces speed up the process ofmaking commitments on material matters and facilitate themonitoring effort. They are allowing us take a cross-cutting
approach to defining our commitments and roadmap for
Sustainability Plan purposes, while enabling progress on
the challenges thrown up by the energy transition in theirrespective areas of influence.

2022 INTEGRATED MANAGEMENT REPORTKEY COMMITMENTS UNDER OUR SUSTAINABILITY PLAN

TALENT

CLIMATECIRCULAR ECONOMY

30% women in management
positions by 2025

55% reduction in Scope 1
and 2 emissions by 2030 incomparison with 2019

Increase the circularity of our 20% reduction in freshwater
waste flows by 50% by 2030 withdrawal from waterstressed areas
Raise the share of renewable
and circular raw materials in No exploration andour energy parks by 15% by
production operations in2030
areas considered World
Heritage Sites by UNESCO.

2% of employees with adisability by 2025
1% of subcontracted
employees with a disability
by 2025

15-20% decrease in the
carbon intensity of our
products sold by 2030 incomparison with 2019

NATURAL CAPITALNet Zero by 2050

HEALTH AND SAFETY
Zero fatalities and serious
incidents

ETHICS AND HUMAN
RIGHTSNo incidents of corruption or
anti-competitive behaviour

SUPPLY CHAIN

COMMUNITIES

100% of main suppliers with
ESG score by 2023

Active engagement withlocal communities in areas ofoperation
Support of socialorganisations in Cepsa’s local
environment55

CHAPTER 2 Good governance

Delegation of ESG governance responsibilities
BOARD OF DIRECTORS

Audit, Compliance,
Ethics and Risk
Committee

Nomination andCompensation
Committee

ESG Services Division

Groups

CFO, Chief Strategy and Sustainability Officer andmember of the Management Committee

Management Committee

ESG steering teamHead of Strategy andSustainability

ESG Planningand development

Marketintelligence

CarbonCycle

Carbon panel

Diversity andInclusion Committee

Water panel

Circular economy
team

Sustainable
employee teamSustainablefinance team

Biodiversity team

Safety teamCorporateplanning
Human rights team

56

APPROVALINFORMATION

Strategy andSustainability
Committee

2022 INTEGRATED MANAGEMENT REPORTIn 2022, the Board of Directors and its steering committees
specifically addressed, at least quarterly, matters related withthe company’s sustainability management and performance.
That structured reporting process is designed to facilitate
efficient ESG oversight and agile decision-making by ourgoverning bodies.
The company’s new culture aims to bring sustainability
to every corner of Cepsa. Our new purpose and values goin that direction. We have also trained over 4,500 of ouremployees and more than 450 suppliers on sustainability
matters.

3.3.4 Remuneration:competitiveness andengagement

1.3.1 Purpose
and values
In tandem, we are gradually incorporating sustainability criteria
into procedures all along the value chain, e.g., talent selection
and promotion, and financing. Moreover, sustainability criteria
are embedded in all employees’ remuneration, including thatof senior management. Sustainability criteria are also used toassess supplier performance.

3.5.3 Positive supplier
relations

EMPLOYEE SUSTAINABILITY PLAN
With the aim of bringing Positive Motion to all our employees, framed by a revamped set of values andculture, we have devised a plan to help them take up sustainability lifestyle habits in their professional
and personal lives so as to reduce their environmental footprints. That plan addresses a range of mattersfrom mobility to energy, waste and water management and the initiatives come in a range of forms, fromawareness campaigns to aid, internal policy modifications and workplace moves.

57

CHAPTER 2 Good governance

ESG RATINGS: ACKNOWLEDGEMENT AND CONTINUOUS IMPROVEMENT
Third-party assessments of our sustainability performance help us continue to advance and improve on the aspects ofgreatest importance to our stakeholders, but also to showcase our achievements, as we rank at the sector forefront.

Industry mover
95th percentile
Last updated: 23 Sept. 2022
Min. 0 – Max. 100

CORPORATESUSTAINABILITYASSESSMENT (CSA)

71 points

1 positionst

Last updated: 17 Nov. 2022
Min. 100 – Max. 0

Last updated: 11 Nov. 2022
Min. 0 – Max. 100

Last updated: 16 Jan. 2023
Min. 0 – Max. 100

58

19,2 points

Ranked within the Top 5% in O&G Upstream& Integrated and as an Industry Mover, having
improved its score year-on-year by more thanany other company in its sector.
First place in the O&G Integrated
sector for the second year running,
ranking as the only player
presenting low ESG risk.

“Advanced” category“Advanced” performance(highest category) in the Energy(O&G) sector.

1st position

First place and “Leader” category
in the Integrated O&G sector.

61 points

82 points

2022 INTEGRATED MANAGEMENT REPORT

2.3 SUSTAINABILITYALIGNED POLICIESGRI: 2-23, 2-24

In line with the Sustainability Plan, our policies, which areapproved by the Board of Directors and apply to all activities
across the organisation and all business relationships, cover
our material topics from the sustainability standpoint. They
define the commitments and guidelines incumbent upon all
our employees, who are kept informed about any new policy orpolicy changes by means of our weekly in-house newsletter.

Corporate Policies on
Cepsa’s corporate website

CORPORATE POLICIES
Rules and regulations, purpose and values

Code of Ethics
Code of Ethics and Conduct

Sustainability
Sustainability policy
Environmental policies• HSEQ• Climate action• Biodiversity

Social policies• Human Rights• Human Resources• Diversity and Inclusion• Sustainable Procurement• Customer Relations

Governance policies• Data Protection andPrivacy• Defence of Fair andEffective Competition• Bribery, Corruption,
and Conflict ofInterest Prevention• Corporate Tax• Ethics andCompliance Channel• Control on Sanctions
and Embargoes inTrade Relations,
Exports, and DualUse Goods• Crime Prevention• General Risk Policy• Cybersecurity• Communication• Security

59

CHAPTER 2 Good governance

2.4 RISKMANAGEMENTGRI: 207-2

2022 MILESTONES

Update of the General
Risk Policy, which lays down

Rollout of the Risk
Assessment Methodology.

the principles for delivery ofsystematised management andcontrol of risks of any kind.

We implemented a methodfor quantifying impacts
and aggregating long-termrisks, underpinned by our
Positive Motion strategy.

Update of our climate changerisks and opportunities to reflect
the recommendations issued by
the Task Force on Climate Related
Financial Disclosures (TCFD).
We reviewed our physical and transition
climate risks, as well as the related
opportunities, across both our units andour different geographies over a rangeof time horizons (2030, 2040 and 2050)
and climate scenarios.

RISK MANAGEMENT MODEL
Our Integrated Risk Management and Control System iscompliant with the COSO-ERM criteria and ISO 31000
standard. It sets out the general framework, principles andprocedures for efficiently managing any kind of risks.

The key phases of our integrated risk management processare:

In 2022, our Board of Directors reviewed and approved
Cepsa’s General Risk Policy, which formulates the principles
and guidelines for ensuring the systematic identification,assessment, measurement and control of threats, in keepingwith our defined risk tolerance thresholds.

• Identifying the resulting risks, including those relatedwith climate change, for which our risk taxonomy is alignedwith the criteria established by the TCFD.

To support the strategic planning process, we analysed
the main risks to which the company is exposed, including
potential new, emerging risks, assigning probability ofoccurrence and impact estimates to each, as well as factoringin other parameters such as speed of materialisation. To dothat we analysed external sources and cross-checked themagainst our in-house information, gleaned from our business
units and corporate departments, to assess their impact.

60• Understanding the external and internal contexts,
establishing assessment criteria.

• Analysing and assessing the risks, looking at both positive
and negative causes and consequences.
• Risk management strategy, depending on its relevance, andrisk appetite, as established in our policy, by implementing
the most appropriate responses to minimise the probability ofoccurrence or potential impact.
• Regular monitoring and reviewing the risks, reporting to theManagement Committee and the Audit, Compliance, Ethics
and Risk Committee quarterly and the Board of Directors atleast twice a year.

2022 INTEGRATED MANAGEMENT REPORTRISK MANAGEMENT GOVERNANCE
Our risk management system, designed around the three lines of defence model, provides an end-to-end vision of how the various
areas of the organisation interact, boosting the effectiveness of our key risk management and control processes.
The Board of Directors is ultimately responsible for the correct functioning of our Integrated Risk Control andManagement System. It relies on the Audit, Compliance, Ethics and Risk Committee to implement and supervise thatsystem.
The Management Committee is tasked with ensuring compliance with the defined risk tolerance thresholds across thecompany and with managing risks in line with our Risk Policy.
The Corporate Risk Unit proposes, drafts and implements our guidelines and establishes common methodologies andtools to create uniform criteria and ensure that risks are managed coherently and consistently across all business units
and corporate functions.
The business units and corporate functions identify, analyse, assess and manage threats and carry out action plans
which are coordinated by the business-level risk units.

KEY RISKS FACED BY THE COMPANY
The spectrum of risks to which the company is exposed can be classified into four major categories, in which the various ESGrelated risks are duly identified:

Strategic. Risks related with the general environment and the company’s strategic positioning and planning, including
political, economic and technological factors.

Financial. Risks derived from volatility in commodity prices and the prices of other financial variables, as well as risks
related with hedging and trading strategies and financial and tax management.
Operational. Risks associated with value chain management, operational effectiveness and efficiency, resource andpeople management, personal and facility safety, the environment and asset integrity.

Compliance. Risks related with governance, compliance with legal requirements and other commitments assumed
and with the company’s legal strategy.

Appendix 4 Detailed information about
the company’s key risks
61

CHAPTER 2 Good governance

EMERGING RISKS
As part of our analytical strategic planning process, we identified key emerging risks and cross-checked them against externalsources. We are monitoring those new risks at least quarterly. The main emerging risks identified in 2022, in line with the mostrecent Emerging Risks reports published by Gartner, are:•Economic recession. The danger of an economic recession with lasting consequences caused by the energy crisis derived
from the conflict in Europe, the scope for persistently high inflation and the increasing cost of capital as a result of central
bank monetary tightening could have an adverse effect on our earnings, harm our ability to raise capital or trigger otherfinancial impacts related with the supply chain. At Cepsa we have identified and quantified the impacts this scenario could
have on demand for our products, on commodity prices and on the cost of the materials we need to execute our projects. To
mitigate those impacts, we are monitoring market trends in real time, identifying efficiency and cost-saving plans in order todefend our profit margins and planning forward-looking initiatives together with our suppliers. Last year we also benchmarked
the company’s relative positioning in terms of business continuity and resilience as part of our response to the risk of crises.

•

Growing social and political expectations. This refers to the fact that organisations such as Cepsa, pressured bystakeholders, are having to respond to a growing number of social and/or political issues, which could imply change in
response to new market rules, tighter requirements or increased and unpredictable regulatory pressure. We must keep aclose eye on possible regulatory developments, which is why the company has reinforced the team devoted to that monitoringtask. That team is delivering better insight into the possible impact of such threats and an enhanced ability to tackle them bymeans of contract underwriting and actions with sector associations.

RISK CULTURE
Our Risk Policy prioritises fostering a company-wide risk culture by working on several fronts:•

In-house training programmes. Designed to educate participants about the company’s risk management methodology andthe use of technical upgrades to ensure standardised and robust assessments.

•

Improved management tools. As part of this effort, we organised sessions about the new risk tool implemented in 2022 forusers.

•

Other continuous learning initiatives: regular meetings addressing new trends and emerging risks and the publication of
ad-hoc reports.

In addition, the Corporate Risk area organises workshops devoted to how to analyse investment projects and other specific topics
in which we identify, assess and discuss cross-cutting risks with senior management, as well as the key business-specific threats.

62

2022 INTEGRATED MANAGEMENT REPORT

2.5 PROACTIVESTAKEHOLDERENGAGEMENT

2.5.1 Stakeholders
GRI: 2-29

We strive to have a positive impact on our surroundings andrespond proactively to our stakeholders’ expectations. We areworking to build solid and transparent relations that generatevalue for all involved.

management of our stakeholder relations, mitigate risks andidentify opportunities for improvement.
We also use a standardised stakeholder identification modeland ask our stakeholders about their expectations annually.

To that end, our management system establishes a generalframework for action designed to facilitate prioritisation and

63

CHAPTER 2 Good governance

EXPECTATIONS DETECTED AND COMMUNICATION CHANNELSESTABLISHED WITH OUR MAIN STAKEHOLDERS
Stakeholder

Expectations detected

Communication channels established

Shareholders• Financial and business performance• Key investment decisions• Progress on ESG matters• Key management appointments• Main risks and mitigation measures• Governing body representation• Tailored communication

Customers• Product and service safety• Energy transition• Service quality and customer satisfaction• Supply security and access• Fair trade• Satisfaction measurement and grievance management systems• Customer service• Now Service• Ethics and Compliance Channel• Social media

Employees• Stable and quality work
• Flexibility• Pleasant workplace climate and good working
conditions• Strategy and investments• Equal pay and opportunities• Gender equality• Safety• MAX virtual assistant• Ethics and Compliance Channel• Commitment surveys• Corporate intranet• Internal communication effort

Society• Personal and facility security• Climate change and environmental protection• Diversity• Human rights and ethics• Business sustainability• Product quality• Community work

• Corporate communications• Neighbourhood associations• Open days
• Public consultations• Email suggestions inbox• Local community management teams• Ethics and Compliance Channel• Corporate website• Social media• Associations, voluntary organisations and initiatives

Suppliers• Equal terms and conditions• Business terms and relationships• Personal and facility security• Climate change and energy transition• Human rights• Supplier portal within the corporate website• Satisfaction surveys• Email suggestions inbox and support centres• Supplier events• Ethics and Compliance Channel

642022 INTEGRATED MANAGEMENT REPORT

2.5.2 Institutional relations
GRI: 3-3, 2-28

Framed by Positive Motion, our Institutional Relations Planenables us to proactively take part in public debate andfurther our engagement with stakeholders so we can meettheir expectations and deliver the company’s targets at thesame time.
The Institutional Relations Plan is reviewed annually withthe aim of keeping our stakeholders current on the industry’s
and Cepsa’s role and activities in the mission of forging a just,green and inclusive transition.
Beyond our institutional activity, we are also members ofbusiness and/or industry associations and think thanks.
Through our involvement with these entities, we can bringour technical expertise to enhancing the legislative process,promoting research in order to raise social awareness,encouraging citizen participation in the ecological transitionand explaining industry’s role.

We have a specific approach for evaluating our membershipand role in associations and whether to join a new association,and for prioritising topics and areas of action, in line with our
Positive Motion strategy.
In 2022, we became a sponsoring partner of Forética, Spain’s
benchmark business platform in the ESG area, and joined its
Spanish Business Council for Sustainable Development. Our
membership of Forética dates back to 2018. We participate
actively in its Climate Change and Social Impact clusters,
both of which seek to raise ambitions, accelerate action,
facilitate networking and beef up alliances and dialogue withthe public authorities and other benchmark institutions within
their respective remits.

Appendix
3.3 Stakeholder management

We also take part in or are involved with a range of social
or environmental initiatives or entities to enhance industry
best practice and cooperation.

SUMAMOS ENERGÍAS
We started up the Sumamos Energías programme with the aim of maximising the integration of our renewablefacilities into their surroundings and helping to create opportunities for socio-economic development and growth in
the local communities where we carry out renewable projects. The initiative comprises three main commitments:• T o drive the socio-economic development of the communities where plants are to be located.
• To protect the environment and biodiversity, minimising our impact on ecological habitats.
• To ensure transparency, reporting to and communication with all stakeholders.

Initiatives/associations and platforms in which Cepsa is involved

65

03
DRIVING POSITIVE
IMPACT66

3.1 Advancing towards a Net Zero world68

3.2 Moving forward on minimising
our environmental impact

82

3.3 Ready for workplace change

92

3.4 Becoming a zero-accident
workplace100

3.5 Facilitating a sustainable supply
chain

106

3.6 Behaving ethically and respectfully113

3.7 Local community relations

122

3.8 Positive impact on society - Cepsa
Foundation

126

3.9 The global agenda: alignedwith the SDGs

129

Driving
Positive
ImpactCHAPTER 3 Driving Positive Impact

3.1 ADVANCINGTOWARDS A NET
ZERO WORLD

TCFD, GRI: 3-3, 201-2, 305-1, 305-2, 305-3, 305-4, 305-5, SASB: EM-EP-110a.3, EM-RM-110a.2, RT-CH-110a.2, EM-EP-530a.1, RT-CH-530a.1. EM-RM-530a.1

2022 MILESTONES

Decarbonisation targets for2030. 55% reduction in Scope 1 and2 carbon emissions at the operational
level and reduction of between 15%
and 20% in the carbon intensity ofthe energy we sell, including the
Scope 1 and 2 emissions derived
from its production and the Scope
3 emissions derived from its use, bycomparison with 2019 levels.

Key indicators

Net Zero by 2050.
Our goal is to achieve net zero
emissions by 2050.

Assessment of Positive Motion
strategy and climate ambitionsfor 2050. Assessment under the ACT(Assessing low-Carbon Transition)
initiative using the specific oil & gas
methodology, evidencing the levelof preparedness of our strategy forpursuing the energy transition being
demanded of the sector.

2022

2021

Carbon emissions, CO2eq
Scope 1, thousand tonnes of CO2eq*

5,280

5,290

Carbon emissions, CO2eq
Scope 2, thousand tonnes of CO2eq

211

335

Carbon emissions, CO2eq
Scope 3, thousand tonnes of CO2eq 162,326

58,113

Energy consumption (TJ) 2

63,71065,584

1

The indirect Scope 3 emissions reported are limited to five categories (Purchased goods and services; Fuel- and energy-related activities; Upstream transportationand distribution; Downstream transportation and distribution; Use of sold products).

2This figure relates to the energy consumed within the organisation and excludes the energy generated and sold to third parties.

682022 INTEGRATED MANAGEMENT REPORT

3.1.1 Climate change governanceCepsa’s Board approved
the company’s 2030 Positive
Motion strategy along withthe related decarbonisation
targets in 2022.
Climate change brings both risks and opportunities for thecompany. To ensure correct oversight and control of theclimate change strategy, specific responsibilities have been
assigned to the highest governing bodies and executive
committees within our corporate governance model.
The Board of Directors is tasked with approving strategic
climate change targets and signing off on the mattersdelegated in its steering committees (Strategy andSustainability; Nomination and Compensation; and Audit,
Compliance, Ethics and Risk). Those committees are tasked
with overseeing management of the climate change strategy
and the related risks, complying with applicable rules andregulations and tying the company’s climate ambitions to its
compensation regime.

The Strategy and Sustainability Committee:
Reviews and makes recommendations to the Boardon the strategic plan with respect to emission
reduction commitments and targets and the energy
transition.

Monitors the risks and opportunities related withclimate change and the energy transition and thesustainability trends taking hold in society that could
have an impact on the company’s business activities.

 eriodically reviews and monitors the establishedP
performance metrics such as net emissions,internal carbon price-setting and delivery of therelated goals and targets.

The Audit, Compliance, Ethics and Risk Committee centralises oversight ofrisk- and compliance-related matters and oversees correct implementationof the climate change internal control system.
The Management Committee is responsible for making
decisions, allocating resources and monitoring the company’s
performance against its strategy. The Carbon Cycle unit,
within the Strategy and Sustainability Department, is in chargeof championing the climate change pathway.

energy efficiency projects and the second relates
to the reduction of a specific amount of Scope 1 and 2 carbon
emissions for the year by comparison with 2019 levels, in linewith the decarbonisation targets set under the umbrella of the
Positive Motion thrust.

In addition, the main mission assigned to the Carbon panel, amultidisciplinary and cross-cutting team with representatives
from all business units, is to review and accelerate allopportunities for reducing direct carbon emissions and aligning
our activity with a significantly lower level of emissions.

We also have a Climate Action Policy, approved by the Boardof Directors in 2021, which establishes the framework forarticulating our ambitions.

In 2022, we introduced two climate change objectives into thecompany’s dashboard which have a direct impact on Cepsa
employees’ variable remuneration. The first is the approval of

2.1 Corporate governance69

CHAPTER 3 Driving Positive Impact

CLIMATE RISK GOVERNANCE
The Internal Control and Corporate Risks Unit is part of the Internal Audit, Compliance and Risk Department, which reportsfunctionally to the Audit, Compliance, Ethics and Risk (ACER) Committee.
The ACER Committee has been vested with specific duties in the area of climate change, notably including:Oversight of the company’s climate change strategy,
practices and policies and the level of delivery of thecommitments assumed.

Transparency in the area of climate change, framed byuse of one of the internationally accepted methodologies
such as that of the TCFD.

CDP CLIMATE CHANGE
Thanks to our participation in the CDP
Climate Change initiative, we reporton our climate change management
practices and on the associated key
performance indicators. We have ranked
in the leadership group with a scoreof A- since 2021.
2022

2021

2020

A-

A-

A-

3.1.3 Climate change:risk and opportunity
management70

For further information,
visit the CDP
website2022 INTEGRATED MANAGEMENT REPORT

3.1.2 Strategy under the guidance of Positive Motion

3.1.2.1 Aligned with Positive Motion
The ambitions embedded in our Positive Motion strategy go
beyond the effort to fight climate change. We are committed
to being an active, front-line player in the transition towards

a carbon-neutral economy. We want to pursue moresustainable business models and provide our customers withlower-carbon energy.

We want to be Net Zero1 by 2050, in line with the benchmark climate
scenarios of 1.5ºC warming of the International Energy Agency (IEA)
and the Intergovernmental Panel on Climate Change (IPCC).

POSITIVE MOTION DECARBONISATION COMMITMENTS
55% reduction in Scope 1 and 2 carbon emissions by 2030 by comparison with 2019 levels.
Reduction in the carbon intensity of the energy we sell to end customers by between 15% and 20% in
2030 by comparison with 2019 levels.

We have had our Positive Motion strategy assessed under the
ACT (Assessing low-Carbon Transition) methodology, using
its oil & gas sector-specific version2, in order to measure how
ready the company is to transition to a low-carbon economy.
The conclusions of that assessment attest to the validityof our decarbonisation targets and solidity of our climatechange governance model and verified that our Positive Motion
strategy is ambitiously invested in the company’s energy
transition.
Our targets for 2030 put us in line with the IEA’s SDS
Sustainable Development scenario of 2ºC and our Net Zeroby 2050 ambition would put us in line with the IEA and IPCC

1. Positive Motion

1.5ºC scenarios. As a result, improvements in upcoming ACT
assessments will stem from three pledges we have made:to implement the Decarbonisation Plan for delivery of ouremission-cutting targets; to increase our R&D budget forenergy transition projects; and to raise the visibility of ourdecarbonisation targets vis-a-vis our customers.
Examples of the specific actions taken in 2022 include theapproval of 25 energy efficiency projects at our Energy Parks
and Chemicals facilities nationwide and progress on our newcommercial strategy, spearheaded by the Commercial & Clean
Energies business, marked by new agreements for supplying
low-carbon energy to our customers.

1.3.3 Our businesses

In line with the SBTi’s Corporate Net-Zero Standard, to attain our Net Zero by 2050 target, we will take measures to reduce our Scope 1 and 2 emissions by at least
90% compared to benchmark levels. Any remaining emissions will be offset using nature-based solutions.

1 We decided to assess our Positive Motion strategy using the ACT methodology developed together with CDP as the Science Based Target initiative (SBTi) has yet to
publish an assessment protocol for the oil & gas sector and the Transition Pathway Initiative only cov ers listed companies.

2 

71

CHAPTER 3 Driving Positive Impact

ISO 14067 - CARBON FOOTPRINTOF PRODUCTS CERTIFICATION
We have audited all our energy parks’ products under the ISO 14067 standard on the carbon footprint of products.
Our internally-developed calculation methodology has been certified by a third party. That exercise allows us toprovide our customers with information about our products’ carbon footprints over the different stages of their life
cycles that can help them manage and track their own decarbonisation goals and commitments.

EMISSIONS-CUTTING TARGETS
Our Decarbonisation Plan, endorsed by the ACT assessment,
has a dual objective: firstly, to reduce the carbon footprint of
our industrial operations and secondly to reduce that of thesolutions we offer our customers.
The first step is to reduce our Scope 1 and 2 carbon emissions
by 55% by 2030 by comparison with 2019 levels. That goal
is tied to the productive activity of the facilities under ouroperational control and is articulated around a series ofemission-abatement levers such as energy efficiency projects,
consumption of green electricity, gradual electrificationof our processes and steam generation. We monitor thoselevers constantly to assess the speed at which they are being
implemented as a function of technological developments andutility prices.

The Decarbonisation Plan up close
Emissionsabatementby 2030

6.7

-55%
3.0

2019 1

1

Switch torenewable
electricity

Implementationof energy
efficiency
initiatives

Internal useof biogas

Electrification

Internal useof greenhydrogen

E&P
transformation

Other

2030

2019 is taken as the benchmark year for annual emissions prior to implementation of the Decarbonisation Plan.

1. Switching 100% of our facilities’ electricity
consumption to renewable sources*.
2. Switching our electricity generation assets
over to renewable sources. To that end wewill cease generating power using fossil
fuels.

Technology solutions for reducing theconsumption of fossil fuels. In 2022, we
did the basic engineering work for the first
package of energy efficiency initiatives which
between them will reduce carbon emissions
by 120k tonnes of CO2**.
Replacement of natural gas, a fossil fuel,with biogas, in both direct purchases andour own generation.

Electrification of cogenerations, processes
and furnace steam generation, involving the
replacement of combustion equipment that
relies on fossil fuels with machines that run
on renewable electricity.
Consumption of 100% green hydrogen in all
our production processes.
Transformation of our E&P assets to reduce
their carbon intensity***.
Other emission-abatement initiatives.

* Our Spanish chemicals facilities consume renewable electricity only. Since 2021, all productive areas of our Energy Parks and our factory in Tenerife are likewise
exclusively consuming green electricity. In addition, in the Mobility & New Commerce and Commercial & Clean Energies businesses, our network of service stations
and lubricant and asphalt factories are supplied solely with renewable electricity. The mission is to increase that boundary.
** To turn our commitment to reducing our energy consumption into a reality, our main Energy Parks and Chemicals factories in Spain have ISO 50001-certified energy
management systems.
*** Since 2021 none of our operated assets in this business has emissions from venting.
72

2022 INTEGRATED MANAGEMENT REPORT

In parallel, the Plan is targeting a reduction of between 15%
and 20% in the carbon intensity of the energy we sell to end
customers in 2030 by comparison with 2019 levels. That goal
is tied to the transition towards lower-carbon business models.
It is expressed in terms of tonnes of CO2 per unit of energy(tCO2/TJ), adding together the Scope 1 and 2 emissions
generated upstream and downstream in making energy
products and the Scope 3 emissions associated with the use of
those products.

Between 2023 and 2030 we plan to
strike alliances with biogas producers todevelop projects around this renewable
fuel, made using plant, forest and animal
waste, in Spain and Portugal. Biogas will
drive decarbonisation across all our industrial
facilities on the Iberian Peninsula, while also
facilitating sustainable mobility for heavy roadtransport customers for whom electrification
is not the obvious decarbonisation choice.

Carbon intensity index

2019

Biofuels
at existing
facilities

Biofuels
at new
facilities

GreenhydrogenNaturalsolutionsEVcharging

Decarbonisation
Plan (-55%
Scope 1 & 2)

Overall reductionin CIIby 2030
Other

15% - 20%2030

We will increase co-processing at ourcurrent facilities. We already have a fatty
acid methyl ether (FAME) production
facility and we are going to commission
two new biofuel facilities.

Offset of the emissions from our products‘in use’ by offering our customers a rangeof carbon-neutral products. In 2022, wecompleted our maiden launch by offsetting
the emissions associated with end
customer use of C petrol.

Reduction of the carbon intensity of theenergy we sell will be spurred by the levers
underpinning the direct emissions reduction
target under our Decarbonisation Plan andPositive Motion strategy.

Renewable hydrogen for direct saleto third parties or for conversion into
new green molecules in sustainableenergy products such as methanol andammonium to enable energy transition inother sectors, such as shipping.

Creation of a network of ultra-rapid EV
chargers in Spain and Portugal.

Other emission-abatement
initiatives.

1.3.6.1 Innovation, enabling transformation73

CHAPTER 3 Driving Positive Impact

3.1.2.2 Scenario analysis
We have defined three climate scenarios for the purposes of testing the resilience of our Positive Motion strategy and climate
ambitions over three time different horizons (2030, 2040 and 2050) based on the guidance provided by the International Energy
Agency (IEA) and the Intergovernmental Panel on Climate Change (IPCC):•S cenario 1
Source: Net Zero Emissions in 2050
(NZE-IEA), SSP1-1.9 (IPCC).
This scenario assumes that the global
energy sector is net zero by 2050,
with several developed economies
attaining that milestone sooner thancontemplated. It is aligned with themission of keeping global warmingat under 1.5ºC. It would be achievedby means of the mass rollout ofexisting clean energy technologies,
such as renewable sources of power
generation, electric vehicles andenergy-efficiency building makeovers.

• Scenario 2
Source: Sustainable Development
Scenario in 2050 (SDS-IEA), SSP1-2.6(IPCC).
This is a scenario of sustained socioeconomic growth with a strongemphasis on jobs related withsustainability. It involves an energy
system that follows best practices
spurred by regulatory initiatives andframeworks developed to foster carefor the environment. One of its pillars
is delivery of the Paris Agreement,i.e., it assumes that the developed
economies achieve zero net emissions
in 2050, with China managing to do soin 2060. Developed economies would
need to meet that milestone by 2070
at the latest. Under this scenario,
global warming would amount tobetween 1.3ºC and 2.4ºC.

• Scenario 3
Source: Stated Policies Scenario in
2050 (STEPS-IEA), SSP2-4.5 (IPCC).
This is the most conservative scenario
as it assumes that governments
will not achieve all of the objectives
announced. It assumes policies are
put in place to reduce the use of fossil
fuels but that demand remains strong,
generating growth in fossil fuel prices
and a decrease in renewable energy
costs. In this scenario global warming
would range between 2.1ºC and 3.5ºC.

FINANCIAL IMPACTS ASSOCIATED WITH CLIMATE CHANGE
Guided by our Positive Motion strategy and climate ambitionsfor 2050, we determined the financial impacts of the relevantrisks assessed under the three climate scenarios for thethree time horizons modelled: 2030, 2040 and 2050.
Our strategy is resilient to the three climate scenarios
evaluated as it is aligned with the most ambitious scenario
74

modelled - global warming of 1.5ºC - and therefore thelowest-impact scenario. Less ambitious climate scenarios
would leave us in a less resilient position as the major
investments planned in more sustainable business models
would be affected by lower than expected demand forsustainable products.

2022 INTEGRATED MANAGEMENT REPORT

3.1.3 Climate change: risk and opportunity management
The Climate Risk Map, consolidated in 2021 and updated
in 2022, defines and classifies climate risks following therecommendations of the Task Force on Climate-related
Financial Disclosures (TCFD), so adopting the latterorganisation’s physical and transition risk taxonomy. We
analysed the identified risks at the assets under our operational
control for the three climate scenarios described above and thethree time horizons contemplated: 2030, 2040 and 2050.
Those climate risks were identified and evaluated taking abottom-up approach by means of workshops and with theassistance of an expert advisor. They were approved by each

2.4 Risk managementbusiness unit and conveyed to the corporate risk area for
consolidation in the company’s general risk map.
Our Integrated Risk Management and Control System follows
COSO-ERM methodology and ISO 31000, the benchmark
standard for risk management systems.

Key risks identified
Physical risks
Business

Chronic risks

Acute risks

Transition risks
Policy andlegal risk

Market risks

Technology risks

Increased cost of
raw materials

Unsuccessful
investments

New competitors

Technologicalobsolescence

Reputation risk

Heatwaves
Extreme winds

Commercial &Clean Energies

Mobility &New Commerce

Extremeprecipitation
Drought

Operatingconstraints
New regulations

Averageprecipitation

Changing customer
behaviour

Unsuccessful
investments

Heatwaves
Chemicals

Rising mean
temperatures

Extreme winds

Rising sea levels

Extremeprecipitation

Average precipitation

Cold spells

Operatingconstraints

Increased costof raw materials

Technologicalobsolescence

New regulations

Changing customer
behaviour

Unsuccessful
investments

Increasedstakeholder concern

Drought
Exploration &Production

Rising mean
temperatures

Extreme winds

New regulations
Heatwaves
Extreme winds

Energy Parks

Trading

Operatingconstraints

Extremeprecipitation

Operatingconstraints
New regulations

Drought

Increase in costof GHG emissions

Extreme winds

Operatingconstraints
New regulations

Corporate

We also identified the opportunities associated with climatechange as a result of efficiency in production and distribution
processes, the development and expansion of low-emissions
products and services and the advent of new products,

Changing
customer behaviour

Changing customer
behaviour

Unsuccessful
investments

Increased costof raw materials

Financingdifficulties

Stigmatisation
the sector
Increasedstakeholder concern

such as eco-fuels and sustainable fuels and services andproducts pinpointed through our R&D effort around the energy
transition. Those opportunities have been layered into our 2030
Positive Motion strategy.
75

CHAPTER 3 Driving Positive Impact

Key opportunities identified
Energy source

Products andservices

Markets

Use of lower-emission
sources of energy

Development of low
emission goods andservices

Use of supportive
policy incentives

Mobility &New Commerce

Development of low
emission goods andservices

Use of supportive
policy incentives

Access to
new markets

Chemicals

Development of low
emission goods andservices

Commercial &Clean Energies

Use of lower-emission
sources of energy

Shift in consumer
preferences

Exploration &Production

Participation in carbon
marketEnergy Parks

Use of lower-emission
sources of energy

Development of low
emission goods andservices

Participation incarbon market

Development of low
emission goods andservices

TradingResource efficiency

Resilience

Use of supportive
policy incentives

Reduced water usage
and consumption

Shift in consumer

Access to
new markets
Use of supportive
policy incentives

We also have additional mechanisms for establishing and monitoring climate risk and opportunity management targets,
including:76

Continuous monitoring of
regulatory developments andparticipation in sector associations
at the national and European
levels.

Assessment of alternatives
to fossil fuel technologies andraw materials in order to offer
customers more sustainableproducts.

Tracking of the metrics used by
the emissions allowance trading
scheme related with emission
trends and financial impacts.

Constant monitoring oftechnological developmentswith an eye to identifying newopportunities and risk mitigation
measures.

Supplier surveys addressing
climate change framed byour commitment to boosting
supply chain transparency andsustainability.

2022 INTEGRATED MANAGEMENT REPORT

3.1.4 Key climate change metrics
We have established metrics to track our climate change
management and risks. The metrics related with the targets
in our Positive Motion strategy are Scope 1 and Scope 2 GHG
emissions at assets under operating control and the carbon
intensity ratio, which includes the emissions in our value chain
associated with the use of the energy products we sell.

We are also layering financial parameters, such as the EU
Taxonomy and other internal criteria, into our systems andprocesses in order to assess how our business is evolving
towards more sustainable models.

SCOPE 1 AND 2 EMISSIONS
Every year we certify our carbon footprint under ISO
14064. That measurement covers our facilities in Spainand the Exploration & Production assets under operating
control. The asphalts business was added to the scope of
certification in 2022. We also separated the certificates for
the Chemicals business from the rest of the organisation,
which encompasses the Energy Parks, Commercial &Clean Energies and Mobility & New Commerce businesses.

Scope 1 and 2 GHG emissions
in 2022 (thousand tCO2eq)

In line with the scope of our ISO certification, we are now
reporting these metrics for the asphalt plans and the biofuels
production plant in San Roque.
Over 90% of our Scope 1 and 2 emissions are under regulated
carbon systems, which, coupled with ISO 14064 certification,means our measurements are reliable, traceable and offer ahigh level of assurance.

Scope 1 and 2 GHG emissions
in 2022 by business (thousand tCO2eq)
168; 3.1%

211; 3.8%
5,280; 96.2%

857; 15.6%

1,558; 28,4%

5,491

5,491
2,908; 53.0%

Scope 1 emissions		

Scope 2 emissions

Exploration & Production

Chemicals

Energy Parks

Commercial & Clean Energies

77CHAPTER 3 Driving Positive Impact

Trend in Scope 1 and 2 GHG emissions between 2018 and 2022 (thousand tCO2eq)
8,000

6,488

6,776
5,779

6,000

5,625

5,491

4,000

2,000

0
2018

2019

In 2022, Scope 1 and 2 greenhouse gas emissions totalled
5,491 thousand metric tonnes of CO2eq, down 2% from 2021
and 15% from 2019 levels. The figures include the contributionof the renewable power consumed by the energy parks,
thanks to which the Scope 2 emissions derived from thepurchase of energy from third parties were zero. That marksa real milestone in the operation of our assets as, together
with the Chemicals business in Spain, 100% of the electricity
purchased from third parties is generated from renewablesources, making our operations more sustainable.

2020

2021

2022

A higher contribution by renewable sources to the national
generation mix in China also implied lower-carbon energy
consumption in that market. The energy landscape in 2022
as a result of the war in Ukraine resulted in intermittent andcurtailed activity in the Renewables, Gas & Power business,
driving a 6% reduction in business volumes and the attendant
impact on emissions.

Trend in emissions intensity by business between 2018 and 2022 (CO2eq)
0.40

0.31

0.31

0.30

0.30

0.27

0.18

0.18

0.18

0.17

0.16

0.15

0.16

0.10

0.10

2021

2022

0.30

0.20

0.10

0.13

0
2018
Chemicals(thousands of tonnes processed)

2019

Energy Parks(thousands of tonnes of processed crude oil)

Our operations’ emissions intensity improved slightly thanks
to optimisation and efficiency gains, the consumption of
78

2020

Exploration & Production(thousands of tonnes of crude oil and gas)

renewable power by our facilities in Spain and the lower carbon
intensity of the energy purchased in Shanghai.

2022 INTEGRATED MANAGEMENT REPORTCARBON INTENSITY INDEX
We use the Transition Pathway Initiative methodology to track
the carbon intensity of the energy we sell our customers,
expressed as units of CO2 per unit of energy. It is likewisealigned with the measure used by the International Energy
Agency (IEA) to track decarbonisation progress in the oil &gas sector (Tracking Clean Energy Progress or TCEP).
The intensity metric1 includes emissions derived from both
our upstream and downstream emissions, including those
associated with our energy products and their use by ourcustomers, considering all of the energy supplied, as well as
the electricity generated and distributed.

In 2022, our carbon intensity was around 76 tonnes of
CO2/TJ of energy sold2. Although that reading was flat bycomparison with the related benchmark, the emissions
component of the ratio declined by close to 10%. In 2022, we
increased our capacity to process renewable raw materials
by co-processing used cooking oil (UCO) at our energy parks
and fully adapting one of our hydrotreaters for processing
renewable raw materials.

VALUE CHAIN EMISSIONS

Scope 3 GHG emissions in 2022 by category (thousand tCO2eq)

9,751
630
881
321
50,7430

10,00020,00030,00040,000Purchased goods and services			Fuel - and energy - related activities

Upstream transportation and distribution		Downstream transportation and distribution

50,00060,000Use of sold products

In 2022, Scope 3 emissions were equivalent to 62 million
metric tonnes of CO2eq, which is 7% higher than in 2021.
That growth arose in the ‘Use of products’ category, as
demand increased on the back of renewed mobility in thewake of the business shutdowns and restrictions derived
from the pandemic.

The chart shows the five most significant Scope 3 categories,
which account for over 95% of all Scope 3 emissions certified
by the company under ISO 14064.

The reduction in carbon emissions targeted in our Strategic Motion strategy is based on a slightly different emissions scope to that provided in this report. That is
because the Strategic Motion target is limited to CO2 emissions and excludes CH4 emissions at the Energy Parks and Commercial & Clean Energies business due tomateriality considerations. However, those emissions are indirectly addressed and tackled in the decarbonisation plan measures. Lastly, the asphalts business and thebioenergy plant in San Roque is not included in the materiality scope.

1 This figure does not reflect the audited emissions or energy values as at the reporting date. Verification of this figure is scheduled as part of the ISO 14064 certification cycle for 2023.

2 

79

CHAPTER 3 Driving Positive Impact

ENERGY CONSUMPTION AND EFFICIENCY
Trend in energy consumption and breakdown by business between 2018 and 2022 (TJ)

Energy consumption (TJ)

100,000

72,32175,00070,871

65,584

63,71045,57547,02846,57051,997

50,102

16,53016,645

16,314

16,522

3,794

4,124

2,727

2,034

2018

2019

2020

2021

50,00025,00064,61615,300
1,840

0

Total

Chemicals

2022

Energy Parks

Exploration & Production

Trend in energy consumption intensity by business,
between 2018 and 2022 (TJ/thousand tonnes)

Energy consumption (TJ)

5.00

4.00

3.00

4.03

2.31

2.00

1.26

4.13

2.28
1.42

4.22
4.04

4.02

2.40

2.37

2.24

1.26

1.15

1.14

2020

2021

2022

1.00

0
2018

Chemicals(thousands of tonnes processed)

2019

Energy Parks(thousands of tonnes of processed crude oil)

Our operations consumed 63,710 TJ of energy in 2022, down
3% from 2021, in line with the downtrend in emissions.
The energy intensity metrics reveal stability. However, it isworth highlighting the slight improvement in the intensity
reading for the energy parks in 2022, evidence of the

Exploration & Production(thousands of tonnes of crude oil and gas)ongoing effort to rationalise their use of energy and optimise
operations. The increase in intensity in the Chemicals businessis attributable to the decrease in business volumes during
the last quarter shaped by the energy crisis, affecting thechemicals plants’ optimisation.

Appendix 3.4 Advancing towards a net zero world80

2022 INTEGRATED MANAGEMENT REPORT

81

CHAPTER 3 Driving Positive Impact

3.2 M
 OVING FORWARD
ON MINIMISING OURENVIRONMENTAL
IMPACT

GRI: 2-2, 303-1, 303-2, 303-3, 304-5, 305-5, 305-7, 306-1, 306-2 / SASB EM-EP-160a1

2022 MILESTONESWe set ourselves the goalof cutting our withdrawal of
freshwater from water-stressed
areas by 20% in 2025 bycomparison with 2019 levels.

Key indicators

We obtained SANDACH
authorisation for waste recovery.

ISO 9001, 14001 and 45001
certification of our Exploration &Production asset in Peru; ISCC
(International Sustainability Carbon
Certification) certification of ourchemical plants in Deten (Brazil),Shanghai (China) and Becancour(Canada) and ISO 50001 certificationin Deten (Brazil).

By co-processing used cooking oil andanimal fats we are able to generatesecond-generation biofuels.

2022

2021

Water withdrawn (million m3)

33.1

33.4

Freshwater withdrawn from water-stressedregions (million m3)

14.4

15.5

Raw materials consumed(million tonnes)

24.1

23.6

2%

2%

Waste managed (thousand tonnes)

62.8

56.9

Waste recovered (%)

64%

62%

Habitats protected or restored (m2)555,900

554,700

Environmental capital expenditure(€ thousand)

100,952

43,844

Renewable raw materials (%)

82

We expanded the scope of our
ISO and ISCC certifications.

2022 INTEGRATED MANAGEMENT REPORT

3.2.1 Managerial excellence
Our HSEQ Policy is designed to ensure environmental
protection throughout our business activities. It addresses
what we consume and how we impact the air, climate, sea,land, ground water, noise levels and biodiversity. It also
provides the foundation for implementing our Environmental
Management System across our organisation, framed by themain applicable standards.
Our Environmental Management System is audited andreviewed annually by an independent third party. In addition,
84% of our facilities are ISO 14001 certified1. That framework
allows us to comply, in a transparent manner, with applicablelegislation and reduce the environmental impact of ouractivities, facilities, products and services, while meeting
our stakeholders’ expectations. We have reinforced thatsystem with ISO 50001 certification (energy consumption
management and energy efficiency) at our Energy Parks in
Spain (Gibraltar San Roque, La Rábida and Tenerife) and at our
chemicals facilities in Palos de la Frontera and Puente Mayorga(Spain) and Deten (Brazil), as well as at our Research Centre.

Teams of technicians at each business unit control
and manage all of their environmental aspects, ensurecompliance with regulatory requirements and minimise
their impacts. At the corporate level there is another teamof experts specialised in each key environmental aspect who
support the various business units.
We apply the precautionary approach established in the Rio
Declaration on the Environment to our activities by means of
the following actions:•

Risk identification, assessment and minimisation.

Certificate Search on thecorporate website

Environmental Declarations
on the corporate website

We also prepare and publish annual environmental
declarations for our main facilities in Spain, which are validated
externally along with their environmental management
systems under EMAS (eco-management and audit scheme)
requirements.

•

Audit schedule.

•

Environmental impact assessments (EIA).

•

Due diligence in procurement processes and theacquisition of industrial plants.

•

Safety files for all our products.

•

Impact management, e.g., in the marine environment,
where we are very active, devising prevention-focusedplans, protocols and simulations focused on damage
prevention.

Appendix 3.5.1 Environmental management andAppendix 3.5.2 Environmental investments

Single certification for our facilities in Spain and Portugal. The facilities in Colombia, Deten, Bécancour and Peru, albeit not included in the scope of the single
certificate, have likewise passed the external SGA audits (ISO 14001).

1 

83

CHAPTER 3 Driving Positive Impact

3.2.2 Responsible water consumptionmeans of initiatives designed to save water, reuse as much as
possible, search for new sources and reduce the impact of ourwastewater.

Water is essential for all living things and for conserving
our ecosystems. It is also vital for carrying on our businessactivities. We therefore foster responsible use of water by

One of the specific targets set down in our Positive Motion strategy is
to reduce our withdrawal of freshwater in water-stressed regions by 25%
in 2025 by comparison with 2019.
participate. Its mission is to identify and assess initiatives andstrategies for continuing to rationalise our water consumption
and improve its management. The work performed by thatteam was instrumental in setting the freshwater reduction
target.

In a document titled Position and Strategy on the Useof Water and the Treatment of Wastewater, we address
the availability of and access to fresh water as a humanright, outlining our dependence on water and our water
management strategy for reducing our footprint.
We have set up a Water Board, a cross-cutting,company-wide work space in which our business units

CDP WATER
We have been participating in this water management performance assessment initiative since 2017.
2022

2021

2020

A-

A-

A-

We have etched out a path of continuous improvement. Since 2020, we have ranked in the leadership group with a scoreof A-, a category achieved by just 8% of all Oil & Gas companies. Despite the progress made, we are committed to
stepping up our commitment to safeguarding water bodies.

For further information, visit the CDP website

We implement technical improvements in order to layer watersavings, reuse and recycling initiatives into our production
processes. Before designing a new project or expanding ourfacilities we study how to use water responsibly, deploying

84

measures for boosting efficiency, maximising the reuseof processing waters, filtering water for recycling andtreating water that cannot be reused to make it suitable forreinjection.

2022 INTEGRATED MANAGEMENT REPORT

Water withdrawal by source (thousand m3)

All areas

Areas with water stress

216

2,264

2,238

15,947

14,716

13,66033,143

Surface water		

207
80
16,185Groundwater		Produced water 		

Third-party water

EXAMPLES OF WATER CONSUMPTION REDUCTION
AND REUSE PROJECTSENERGY PARKS SAN ROQUE (SPAIN):CHEMICALS - PALOS DE
LA FRONTERA (SPAIN):EXPLORATION & PRODUCTION- BMS (ALGERIA):

Water reuse: installation ofultrafiltering and reverse osmosis
modules which will reduce thevolume of water sent to wastewater
treatment plants by 20%.

Improvements at the effluent
treatment plant: better wastewater
quality by reducing the levels of
suspended solids.

A new treatment facility forhousehold wastewater from basecamps whose quality makes it apt
for watering gardens.

In order to go further, it is essential to understand our risk
and impacts on water resources and our performance andprogress.
We assess our water risks annually using WWF’s Water Risk
Filter1. That tool performs both basin and operational waterrisk assessments, in both instances divided into three majorrisk categories (physical, reputational and regulatory).
We round out that analysis with environmental impact
assessments (EIA), which outline a project’s impacts during

each phase, identifying mitigation measures and action plansfor implementation; the Environmental Management System,
which defines the methodology for identifying and assessing
the environmental aspects common to all facilities; andregular reports certifying the absence of any impact on thereceiving environment.
In addition to the corporate target, there are local targets foreach facility. Control over their delivery via the associatedindicators allows us to track whether we are performing in linewith expectations.

None of Cepsa’s facilities ranked as high-risk in the last assessment. However, three were rated as medium-risk, specifically the La Rábida and Gibraltar-San Roquerefineries and the Algerian Exploration & Production asset, BMS. As a result, the company applied its internal risk assessment methodology to analyse basin risks
over a 10-year horizon. That analysis did not identify any substantive impact risks. However, controls and mitigation measures have been defined for each of the risks
and events evaluated. That assessment will be extended to the rest of the facilities evaluated using the WRF tool.

1 

85

CHAPTER 3 Driving Positive Impact

In 2022 we reached a pioneering agreement with Arcgisa forthe reuse of urban wastewater, specifically for its full reuse at
the San Roque Energy Park and in the upcoming developmentof the Andalusia Green Hydrogen Valley.
WASTEWATER MANAGEMENT
The mantras of our wastewater management effort areprevention and reduction of source contamination. We deploy
best available techniques to guarantee that our facilities
comply with the limits stipulated in our permits and respects
the natural surroundings. The controls we perform aredefined by our plants’ environmental permits, our regulatorycompliance effort and the guidelines set by the corporate
environmental protection unit.

We have wastewater control plans at the facility level. We
control wastewater volumes by means of direct metering
whenever possible and wastewater quality by means ofregular plant-by-plant sampling. In parallel, in Spain, specialist
environmental firms certified by the competent authorities
supervise the receiving environment (where we discharge
our treated effluents) periodically, certifying compliance withtargeted quality standards, or any deviations identified.

Wastewater discharge by type of destination (thousand m3)

715

23

8,090

16,31725,144

Surface waterSea water

Groundwater

Third-party water

Appendix 3.5.3 Responsible water consumption862022 INTEGRATED MANAGEMENT REPORT

3.2.3 Biodiversity protection
We apply the mitigation hierarchy principle (avoid, minimise,
restore and offset) at our productive facilities, whether locatedin biodiversity-stressed regions or adjacent areas.

Our Biodiversity Policy fosters regular identification andassessment of the key impacts our activities have on our
habitat.

We have pledged to abstain from exploration or production activities in
UNESCO World Heritage proper.
We carry out activities to raise awareness among our
professionals, suppliers and other stakeholders about theimportance of protecting and conserving nature.
We also help the scientific community by studying the species
and ecosystems close to our main productive facilities.

Collaboration with third parties is an important part ofthat effort. We work with public authorities, NGOs, local
communities, experts and other stakeholders, factoring in theirneeds and expectations, to improve biodiversity.

ECOSYSTEM PRESERVATION OR RESTORATION MEASURESWe work to identify and measure our footprint. To identify
areas of bird and other biodiversity conservation in Spain,
we use a bird sensitivity mapping tool developed by Birdlife
International which geolocates the species present in
Important Bird Areas (IBAs) located less than 5km from ourfacilities.

Cepsa’s biodiversity pledge also involves working in
conjunction with its Foundation on, for example, regeneration
work at Laguna Primera de Palos by drying it out to eliminate
exotic invasive species and participation in the SOS Caretta
project for the conservation and rescue of sea turtles.

That information allows us to design and implement local
Biodiversity Action Plans for the recovery of biodiversity andeliminate potential impacts.

Appendix 3.5.4 Biodiversity protection
For further information, visit biodiversity on the corporate website
87CHAPTER 3 Driving Positive Impact

3.2.4 Making the business more circular
One of the ideas underpinning our Positive Motion strategy is to provide society with more sustainable products, articulatedaround the circularity concept.

Circular economy commitments
Increasing the circularityof our waste flows by 50%
by 2030 vs 2019.
Increasing the share of
renewable and circular raw
materials used at our energyparks to 15% by 2030 vs 2019.

Basing 100% of our new
production of renewable diesel
and biojet molecules on
second-generation raw by 2030
vs 2019.

We continue to step up our efforts to minimise our raw
material consumption and contribute to a circular economy.
We are steadfastly committed to increasing our relative use of
raw materials that are renewable or circular, while reducing
the waste we generate, as set down in our Sustainability Policy.
Inspired by our Positive Motion strategy, we have pledged touse new renewable and circular raw materials in order toprovide low-carbon fuels. A good example is our Sustainable
Aviation Fuel (SAF) initiative which requires the use ofrenewable and circular inputs.
We are striving to address some of the waste we generate via
on-site recovery and adapt our facilities to be able to process
recycled raw materials.
Our HSEQ Policy commits us to making efficient use of finite
resources, maintaining the value of our products andmaterials in the economy for as long as possible
and minimising waste generation.

Replacing the fossil fuel sourcesin the chemical products we sellby introducing renewable andrecycled materials.

Our Position and Strategy on Waste seeks to apply the wastehierarchy principle by rationalising the use of raw materials,
reusing them in processes and recycling and recovering thewaste generated.
Our production and consumption model is based on leveraging
energy and process waste flows to reduce the generation ofwaste and streamline the consumption of natural resources.
Last year we reinforced our circular economy commitment
by creating the Circular Economy Board, a company-wide
taskforce tasked with identifying and implementing circularalternatives for the waste we produce and raw materials weconsume.
We are a signatory of Spain’s Circular Economy Pact along withother associations, organisations and businesses, so pledging
to drive the transition thrust by means of specific measuresand effective communication actions.

INTEGRATED ENVIRONMENTAL PERMITAND SANDACH PERMIT IN LA RÁBIDA
Our energy park in La Rábida has obtained an Integrated Environmental Permit
and the Sandach Permit for the onsite recovery of animal-based subproducts
not apt for human consumption (used cooking oils and animal fats).
Those certificates will reduce the use of conventional raw materials andenable the manufacture of sustainable fuels. Above all, however, these two
accolades mark a step forward in our circular economy effort by giving asecond life to certain types of waste.

882022 INTEGRATED MANAGEMENT REPORTWASTE HIERARCHY: PRIORITISING PREVENTION
We are working to improve our management by following thewaste hierarchy as closely as possible.

Prevention is therefore our top priority: we separate and sortthe various kinds of waste and undertake a series of initiatives
to reduce its quantity and toxicity.

Thanks to different sorting techniques we are able to separate
items from some of our waste for reintroduction into our
productive processes.
Reuse is another important concept. For example, whenselecting catalysts we prioritise those than can beregenerated more times and, at the end of their useful lives,
send them to authorised handlers for parts recycling.

Lastly, waste with no scope for reuse gets sent to authorised
deposits specific to each class of waste.
We also draw up waste minimisation plans designed togradually reduce generation.

Recycling is also a core aspect of our management effort; weuse authorised waste handlers to remove the parts that canbe used to make new products.

WASTE GENERATION REDUCTION PROJECTSENERGY PARKSCHEMICALS• Reuse of the spent FCC catalyst.

• Recovery of the HDA-II unit’s
catalyst.

• Increased volume of catalysts
sent for metal recycling.
• Waste sorting improvement
project.

• Fine-tuning of the phenol
recovery unit (PRU) to reduce its
consumption of sulphuric acidand caustic soda.

COMMERCIAL &CLEAN ENERGIES• Reusable cloth pilot test.
Hazardous waste sent tolandfill cut by 1,000kg/year
by extending the useful life of
570 cloths to up to two years.

89CHAPTER 3 Driving Positive Impact

COLLABORATION WITH THIRD PARTIESAt Cepsa we have agreements with authorised handlers
covering the correct external processing of the various kindsof waste generated across our facilities.
We demand and verify compliance with applicable legal
requirements throughout the entire process by means of
document traceability and the use of recovery/elimination

certificates to be delivered by the handler to Cepsa.
We are also a waste handler, which allows us to recoversome of the waste generated by us and by third parties; werecycle that waste into raw materials for processes in otherbusinesses and industries.

Under the scope of the agreement reached with Arcgisa in 2022 forthe reuse of urban wastewater, we will back R&D initiatives to research
the recovery and recycling of the solid urban waste managed by Arcgisa
at its southern European complex.
Appendix 3.5.5 Making the business more circular902022 INTEGRATED MANAGEMENT REPORT

3.2.5 Continuous control of our air emissions
We seek to prevent or at least minimise our non-greenhousegas emissions, particularly SO2, NOx and particles. To meetthat target we have a protocol articulated around continuous
emissions controls.

Thanks to that monitoring effort, auto-control mechanisms
and the external measures implemented with the help of an
authorised environmental quality provider, we understand ourmain emissions in minute detail.

Non-GHG emissions (tonnes)
15,00011,643

10,000

9,055

8,097
5,319

5,508

5,101
4,079

5,000

332

642

2018

2019

8,830

8,268

4,453

438

490

537

2020

2021

2022

0

NOx

SOx

All emissions have been trending lower in recent years. In
2022, the readings registered a slight increase by comparison
with the levels reported in 2021 and 2019 (the 2020 figures
are not comparable due to the impact of the pandemic-related
restrictions on operations), due mainly to the shift in the mix ofenergy used derived from the Russia-Ukraine conflict.
All those emissions have been trending lower thanks to
improved combustion processes, the use of cleaner technology
and the implementation of abatement systems. Framed by

PROJECTS FOR
REDUCING NON-GHG
EMISSIONS

Particulate matterour commitment to continuous improvement, a series ofinvestments have been undertaken in recent years and new
initiatives are in the pipeline.
The measures implemented to cut emissions notably include
the Leak Detection And Repair (LDAR) Programme for the
management of VOC emissions and improvements madeto combustion processes to encourage the use of cleaner
technology and implement systems that have led to a
reduction in VOC, methanol, CO and NOx emissions.

ENERGY PARKSCHEMICALS• Project for the recovery of VOCs
in the cistern loading yard
(in progress).

• Installation and commissioningof two RTOs to reduce VOC
emissions.

Appendix 3.5.6 Continuous control of our air emissions

91

CHAPTER 3 Driving Positive Impact

3.3 R
 EADY FORWORKPLACECHANGEGRI 3-3, 2-20, 2-30, 402-1, 403-3, 403-4, 403-5, 404-2, 407-1

2022 MILESTONES

Redefinition of the company’svalues and leadership model.

New learning and development
model. We built a continuous

Based on our Positive Motion
strategy, we redefined our values andour leadership model, with the helpof over 3,000 employees.

learning culture to drive upskilling
and reskilling.

Updated Equality Plans andProtocol against Gender-based
Harassment.

Key indicators

2022

2021

10,3109,820

Female (%)

38.0%

37.2%

Male (%)

62.0%

62.8%

Women in management positions (%)

26.7%

25.4%

Employees with permanent employment contracts (%)

91%

90%

Hours of training per employee (nº hours/employee)

40

37

87%

87%

Employees (nº)

Employees covered by collective bargaining agreements (%)

Appendix 3.6.1 Workforce overview

922022 INTEGRATED MANAGEMENT REPORT

3.3.1 Talent with purpose
We offer quality, sustainable, and exciting work. Our efforts
are geared toward taking care of our people, helping
them develop and maximising their engagement withand contribution to our Positive Motion strategy. We haveembarked on a cultural transformation.
We have begun devising a new leadership model
underpinned by our new values. The model outlines the
behaviour and practices expected of all team managers.
With it we can lay down the day-to-day strategy for everyone
at Cepsa.
We boast an attractive employer brand, not to mention a
unique and distinctive value proposition that is tailored tothe company’s existing diversity. Our Employer Branding
strategy is people-centric. We try to attract and retain
the best professionals by leveraging our position as anestablished and growing company that aims to lead theenergy transition and is capable, not only of offering highquality employment, but also opportunities to develop
through internal mobility, international exposure and careeradvancement.

Our integrated talent management model, built on respect
and inclusion, comprises a variety programmes, such as:
Talent Call: programmes to help
students, recent university graduates andvocational training graduates start theircareer at a place where they can learn
and improve each day.
Internal mobility: commitment tointernal talent to move forward with our
Positive Motion strategy. We harness thepotential of our people so they can rise to
new challenges and further their careers.
Talent in Motion: knowledge
management plan.
Unleash Your Energy: programme topromote Cepsa’s leadership style.

CHALLENGING U
Challenging U is a Talent Call programme offering permanent employment and training to recent
graduates. In 2022, we promoted the hiring of women and people with disabilities. Indeed, 70% of new hires
were women and 4% were people with a disability.

93CHAPTER 3 Driving Positive Impact

HOW TO ADD TALENT: JOB FLEXIBILITY AND WORK-LIFE BALANCE
We want all our people to contribute their talent, no matter
what their personal situation and needs are. We have aprogramme designed to facilitate work-life balance based on
the Fundación Másfamilia foundation’s EFR (which stands forfamily-friendly company) model. Through this programme,considered good practice in work-life balance by the UN, we
are fostering a new culture based on flexibility, respect, trust
and mutual commitment.

time, teleworking, part-time work, childcare measures (e.g.
childcare vouchers or remote working), breastfeeding facilities(e.g. building up leave or specific breastfeeding areas), paid
leave to care for family members in addition to parental leave.
We also recognise our people’s right to digitally disconnect
when they are on break, on leave or on holiday and respect
for private and family life. To do so, we intend to draw up a
specific policy.

We have drawn up 30 guidelines with work-life balancemeasures tailored to each job market. These include flexi-

STEERING CAREER DEVELOPMENT
Through our integrated evaluation model, we monitor our
employees’ skills continuously. This model is designed toenhance performance through:••MIDE system: a tool for measuring individual performanceagainst objectives, which also include values and expected
professional behaviours.
Skills assessment: the assessment of specific behaviours
in relation to our values and leadership model throughour performance appraisal systems and multi-source
assessments of company leaders.

•Talent committees: designed to identify potential andspecify development commitments so our team isprepared to tackle the company’s current and futurechallenges. They target department heads and seniortechnicians.

•

Succession plans: these pinpoint critical positions, assign
successors for those positions and draw up career plans tofacilitate the transition to a new position.

CERTIFICATIONSTOPEMPLOYER

EFR(Spanish acronym for family-friendly company)

Appendix 3.6.2 Talent with purpose942022 INTEGRATED MANAGEMENT REPORT

3.3.2 A diverse and inclusive workplace

Our target is to have 30%
women in leadership positions
and 3%1 of employees withdisabilities by 2050.

By redefining our leadership model, articulated around ourvalues, especially “We care about people”, we want to haveinclusive leaders.
We have rolled out a corporate-wide strategy comprising
30 annual initiatives to strengthen women’s role within theorganisation and promote their recruitment.

facilities accessible. We have also taken certain measures
to promote hiring of people with different skills by posting
job offers in specific talent portals. Care plans are also inplace for families of workers who have children with different
abilities to promote their socio-economic and labour market
integration.

So that people with disabilities can do their jobs, we arefirmly committed to adapting our workplaces and making our

AWARDS FOR DIVERSITY AND INCLUSION

Financial Times
Diversity Leaders

Diversity Leading
Company Seal

Our Diversity and Inclusion Policy is a testament to our firm
commitment to equal opportunities, non-discrimination,
diversity and inclusion. Respect for principles of diversity
and inclusion is enshrined in our Code of Ethics and Conductand our Human Resources Policy. We are also committed topromoting a workplace that respects the dignity of people
to prevent all forms and manifestations of harassment,
intimidation, or violence.

Empowering Women’s
Talent Seal

Top40Company
INTRAMA’s VariableD2023
reportOur Diversity and Inclusion Committee promotes diversity andchampions an inclusive culture across the company, ensuring
an enterprise and cross-cutting approach to challenges
and opportunities, singling out best practices and tracking
the progress of projects undertaken to help us deliver our
objectives.

Between in-house staff and external partners.

1 

95

CHAPTER 3 Driving Positive Impact

DIVERSITY NETWORKS
We furthered our commitment to diversity by strengthening our employee diversity networks:•

Anexa promotes awareness and equal opportunities for men and women.

•

Equal was set up with a mission to promote LGBTI inclusion and drive change by raising awareness about
gender identity and sexual orientation.

•

Capaz aims to be the voice for disability, helping to create an inclusive environment by carrying out awarenessinitiatives and driving, proposing, sharing and promoting support and cooperation.

We made progress in promoting diversity in 2022, becoming a signatory of several
UN initiatives:•

WEP (Women’s Empowerment Principles).

•

III Target Gender Equality.

•

Standards of conduct for promoting LGTBI+ inclusion.

We provide training, celebrate key dates, and conduct awareness campaigns
to reinforce a culture of diversity and inclusion (D&I) across the company.

MAIN D&I PARTNERSHIPS
Inspiring Girls: a volunteer programme for givingtalks and sharing career paths with young people andinspiring them with the experiences of women in STEM
(science, technology, engineering and math) fields.

Adecco Foundation: through the Aflora Plan, we
provide staff in Spain advice on the social and tax
advantages of having a disability certificate and help
them with the related paperwork.

AEMENER (the Spanish Association of Women for
Energy): an initiative to boost the proportion of womenin all areas of the company.

REDI (Spanish Corporate Network for Diversity
and LGBTI inclusion): an association that works tofoster inclusion, irrespective of gender identity, gender
expression and sexual orientation.

STEAM - Girls in Science: a partnership with the
Ministry of Education to promote STEAM fields among
young girls and boys.
Empowering Women’s Talent: a programme
spearheaded by Teams & Talent designed to promoteequality and diversity.

Disjob: membership of the external employee portal
for integrating people with different abilities.
The Diversity Charter: extension to 2023 as signatoryof the charter to promote equality and inclusion.

Appendix 3.6.3 A diverse and inclusive workplace962022 INTEGRATED MANAGEMENT REPORT

3.3.3 Learning culture
We have put in place a new learning model. To help thecompany deliver its strategic objectives, our people needsuperior technical and leadership skills so that they canovercome the continuous challenges posed by technicaland environmental developments. We promote the continuous
learning and skills development of our people to achieve
upskilling and reskilling.

LEARNING DAYS AND LEARN ABOUT
We have created spaces and allocated resources for upskilling and reskilling. Every third Friday of the month,
we hold Learning Day, providing all our employees three hours for training and development. Each event
boasted over 1,000 participants and nearly 4,000 interactions. Meanwhile, each month our employees receive atentative schedule of different in-person and virtual or e-learning activities.
In line with this goal, a series of programmes have been created as part of the Learn About initiative to addressa variety of topics; e.g., digital skills, ESG, new renewable energy sources, diversity, inclusion.

Our training management model is based on matching therequired expertise and skills with each job, underpinned
by training activities planned by the business units and theprogrammes spearheaded by the Learning Office. The modelis 70% hands-on practice and experience, 20% tutoring and
10% training, to help us put in place and guide reskilling
processes.
In 2002, we completed the Unleash Your Energy leadershiptraining cycle. More than 1,200 department heads and middle

managers in Spain and Portugal took part in the programme,learning skills that included communication, work-lifebalance, and resilience.
We also offered all employees access to the LinkedIn Learning
training catalogue, so they could find new courses to enhancetheir employability and acquire new skills through selflearning. More than 1,400 employees used the platform andwere over 4,000 course content and 17,500 video views.

97

CHAPTER 3 Driving Positive Impact

During the year, we conducted specific development programmes
for certain groups:•

Coaching and mentoring: for high-potential managers anddepartment heads to support and drive their careers withthe help of coaches or mentors.

•

Programmes at business schools: training programmes
at business schools (e.g., Headspring Executive
Development, Nebrija University) for high-potential
employees.

•

Cepsa Leadership Academy: for team leaders tohone their leadership skills and help with their teammembers’ career development.

•

Co-payment programme: funding for part of
employees’ postgraduate studies at business schools
to help them progress.

We also created a specific sustainability training programme.
This programme was launched with training on the
Sustainable Development Goals (SDGs) and included ageneral syllabus in a gaming format. It was completed during

the year with several training initiatives taking deep divesinto a range of topics, such as ESG criteria, climate change
and energy transition, ESG challenges and opportunities,
sustainable finance and the circular economy.

3.9 Advancing on the Global Agenda: alignedwith the SDGs

Type of training

Hours of training

12,392362,851

57,246410,973

200,148

31,145
3,836

106,206

Production

Foreign languages

Other subjects

Health and safety

Development

Business administration

Appendix 3.6.4 Learning culture
98

2021

2022

2022 INTEGRATED MANAGEMENT REPORT

3.3.4 Remuneration: competitiveness and engagement
Remuneration policies and processes are drawn up to support
the company’s strategy and foster employees’ short- andlong-term engagement.
Our remuneration policies are based on principles ofinternal equity and external competitiveness, motivationand commitment to the company’s values and performance,sustainability, and contribution to delivery of the company’s
objectives. We review the structure and competitiveness of
our remuneration policies each year to ensure we have theright mix of talent.

Part of the remuneration of employees who receive variable remuneration
based on group objectives, including executives, is tied to sustainability
performance. Specifically, ESG criteria account for 20-25% of Cepsa’s
objectives for 2022.
We tailor remuneration fully to each individual employee’s
reality, reflecting the basic pillars of well-being and bearing
in mind that we all have different needs and wants.
This means having a flexible remuneration scheme
whereby employees can, voluntarily, earmark part of theirremuneration to certain products or services that offer
sizeable tax and economic advantages.

This year we had a Benefits Day at Torre Cepsa and the Helios
buildings to broaden employees’ knowledge of the benefits
available to them just for working at the company. The eventdrew massive attendance by employees, who were able tomeet suppliers personally and ask them questions directly.

Appendix 3.6.5 Remuneration:competitiveness and engagement

3.3.5 Social dialogue and labour relations
Working conditions are set based on the reality of each job
through social dialogue and collective bargaining. The result
is a flexible and integrated labour relations framework witha high level of coordination with, and participation by, unions
and workers’ legal representatives.
Our Human Rights Policy recognises the importance ofrespecting the right to freedom of association and theparticipation of workers’ representatives and considers thisthe best way to shape and develop working conditions.
Applicable laws in most areas where we have operations
safeguard worker representation through unions and/or allow
representation through people chosen directly by company
employees. Likewise, we provide the necessary resources andsupport to ensure that employee representatives are elected
properly.

on a variety of matters, actively participating in any ongoingcollective bargaining processes.
On matters where a company or workplace collective
bargaining agreement does not apply, we abide by therelevant industry bargaining agreement, if there is one, or theprovisions of the company’s management manuals, whichembed and are inspired by our values.
The main agreements and those with the greatest impact inrecent years are the Group’s I Partial Collective Bargaining
Agreement, which covers 11 companies in different parts of
Spain, and the II Refining Collective Bargaining Agreement,
which covers all of our energy parks.

We maintain open dialogue with the various worker
representation bodies and committees and reach agreements

87%

Employees covered by collective
bargaining agreements (%)

Appendix 3.6.6 Social
dialogue and labour relations
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CHAPTER 3 Driving Positive Impact

3.4 BECOMINGA ZERO-ACCIDENT
WORKPLACE

GRI: 3-3, 403-1, 403-2, 403-3, 403-6, 416-1 // SASB: RT-CH.320a1, EM-EP-320a1, EM-RM-320a1, EM-RM-320a2

2022 MILESTONES

Workshop on Safety
Observations: Trainer training,

Improvement in audits of work
permits at the energy parks:

held at all chemical plants andcurrently under development for allother businesses.

pilot project at the Gibraltar-San
Roque Park, with seven safety
auditors taking part.

Key indicators
Fatalities, employees and non-employees (nº)
Hours of employee training on safety (nº)
Employee lost workday injury frequency (LWIF)1
Non-employee lost workday injury frequency (LWIF)2
Employee total recordable incident rate (TRIR)3
Non-employee total recordable incident rate (TRIR)4
Process safety (nº)

LOTO (Log Out Tag Out) systemtraining for Exploration &Production staff: training to highlightthese practices to prevent major
incidents in equipment maintenance andrepair.

2022

2021

0
106,206
0.55
1.76
0.98
2.83
16

0
88,570
0.66
1.49
1.20
2.58
9

Appendix 3.7 Becoming a zero-accident workplace
Total number of lost-time employee accidents / Total number of hours worked x 1,000,000

1 

Total number of lost-time contractor accidents / Total number of hours worked X 1,000,000

2 

Total number of employee accidents recorded / Total number of hours worked X 1,000,000

3 

Total number of contractor accidents recorded / Total number of hours worked X 1,000,000

4 

100

2022 INTEGRATED MANAGEMENT REPORT

3.4.1 Creating a safety culture
Health and safety are embedded in Cepsa’s culture and vision.
We take care of everyone who works for or with our company,
our customers, the local communities and our surroundings,
and we are committed to continuously improving.
We promote a culture of safety leadership and want people
in leadership positions to foster a climate of trust and set
an example for employees and contractors alike. Everyone
should commit to protecting themselves and others and
we encourage two-way communication regarding policies,
objectives, action plans and sharing lessons learned.
The related training and awareness programmes in place
aim to promote transparency, commitment, individual
accountability and engagement.
We have rolled out Preventive Action Plans (PAP) to spread
our safety culture throughout the entire company. They
include initiative such as:•

Safety walks: safety visits by process unit managers
with in-house operational staff and employeesof service companies to strengthen their leadershipand visibility.

•

Housekeeping inspections: inspections performed bymultidisciplinary groups from operations, maintenanceand safety to ensure optimal order and cleanliness.

•

Preventive Safety Observations (PSO): observations
by employees and contractors to promote excellence inoccupational safety, including conversations to jointly
detect deviations and pinpoint areas of improvement.

We also carried out specific projects for each business; e.g.
BRIO, ORION and KAISER. The purpose of these culturaltransformation programmes is to implement work approaches
whereby employees are involved in plant improvements and tohighlight the importance of bolstering safety.

Appendix 3.7 Becoming a zero-accident workplace101

CHAPTER 3 Driving Positive Impact

3.4.2 Safety management: commitment and best practices
The aim of our Health, Safety, Environmental Protection and Quality (HSEQ) Policy is to take care of all the people who work at
and collaborate with Cepsa, our customers, and the communities and environments in which we operate.

100% of staff is covered by an occupational health and safety
management system and 93% of our industrial sites are ISO 45001
and OHSAS 18001 certified.
In 2022, we held our annual occupational health and safety training and awareness campaigns and continued to promote
improvement through lessons learned, with ongoing monitoring of key indicators.
We are firm believers that in-depth investigation of incidents is crucial so we can learn from them and prevent them fromoccurring again. To that end, we apply the leading incident investigation methodology, Kelvin TOP-SET, in all business units.
This methodology entails conducting a comprehensive investigation of incidents, not just a root cause analysis.

SAFETY EXCELLENCE PROJECTIn 2022, we embarked on an ambitious safety excellence project with DuPont Sustainable Solutions (dss+), a leader
in this field. The aim is to become an industry benchmark in safety, health, and environmental performance by 2025.
To achieve this, we started with a diagnosis of the state of our safety using different tools. We then drew up an action
plan with all the relevant business units comprising 44 actions. We pilot tested all the actions during the year andassessed the maturity of the culture to gauge their effectiveness.

As required by law for Spanish sites, we designed anannual planning of preventive actions to eliminate, reduceand control risks. We appointed officers, earmarked
resources, and established monitoring, along with deadlines
for implementation. Planning is based on the results ofrisk assessments, safety inspections and observations,environmental condition measurements, internal objectives,
and resolutions adopted at Health and Safety Committee

102

meetings. The annual report drafted by the Occupational
Health and Safety Area presents the final results of the annual
planning.
The business units plan and draw up internal audit
programmes to assess our management system. The Internal
Audit Department also plans and designs audits that are
separate from those of the business units.

2022 INTEGRATED MANAGEMENT REPORTHAZARD IDENTIFICATION AND ASSESSMENT
We apply a structured approach to identify hazards and ensurethat the organisation’s risks are assessed systematically andthat the resulting control measures are implemented.
Communicating, investigating and sharing, information on
hazardous situations and safety incidents is essential in our
industry.
We have a procedure in place for establishing a common
investigation criterion irrespective of the category of incident,
its seriousness, the potential damage, or its location.
We use it to determine the related functions andresponsibilities, the approach and process for producing
reports, and the lessons learned.
All safety events1 must be reported immediately. The
potential seriousness of each event is determined basedon Cepsa’s risk matrix. High Potential (HIPO) and Very HighImpact events are presented to the Management Committee.
The investigation report includes the related corrective
actions. These events are evaluated to determine whether toprepare and report an HSE alert and a lesson learned.

We have several channels available to all employees andcontractors to report hazards: a specialist mailbox, work or
maintenance order requests to remedy potentially unsafe
conditions, a potential incident (near miss) communication
channel and oral communication through the supervisor.
Initiatives undertaken to assess, monitor and reduce exposureof employees and contractors to health risks include:•

Design and modifications at facilities to ensure safe
working conditions.

•

Equipment and facility maintenance programme.

•

Assessment of risks from potential exposure to chemical
products and design of the preventive measures
to be applied and programmes for regular hygienic
measurements.

•

Use and provision of personal protective equipment (PPE)in accordance with the related risks.

EMERGENCY RESPONSE
All our workplaces have emergency plans tailored for theirrisks and the laws applicable in each country. These plansinclude emergency resource availability and organisational
requirements and inspection and maintenance resources
and needs.

We have a Process Safety Manual (PSM) aligned with
the Energy Institute model that covers preparation for
emergencies.
Drills are performed to check the level of plan implementation
and any applicable corrective measures are drawn up.

HSE events are classified as: near miss (potential incident); injury/illness; process safety event (PSE); property damage; environmental damage; or road accident.

1 

103

CHAPTER 3 Driving Positive Impact

CONTRACTOR AND SUPPLIER SAFETY
Before engagement, suppliers are assessed and evaluatedfollowing an approval process to ensure they meet Cepsa’s
safety qualification standards.

3.5.3 Positive
supplier
relations

Specific safety clauses areincluded in the General
Contracting Terms andindividual contracts.
Moreover, our procedures
impose requirements
regarding access to ourfacilities.
All service company
employees receive

information/training before they can enter our facilities. They
are given specific instruction regarding basic safety rules,
risks and consequences, the actions to take in the event ofemergencies and personal protective equipment.
A single approval is available for service company execution
supervisors that is valid for the Palos, San Roque and CanaryIsland sites. Single approval means any worker receiving
execution supervisor training at a specific site who passes
the related test may work as an execution supervisor at allsites. Execution supervisor training comprises three modules
and is valid for two years. Implementation is monitored toincorporate the improvements uncovered from trainer andtrainee feedback.

WORKPLACE HEALTH
We are committed to providing a healthy and safe workplacefor our employees and anyone who works at or visits ourfacilities. Objectives are outlined in the Code of Ethics andConduct and the HSEQ Policy to ensure that our operations
meet the highest standards of health. These commitments
are set out in a variety of internal procedures that address
health service functions.

draw up and implement specific procedures. We conduct
internal and external audits to ensure compliance withregulations and attest to the quality of the service provided on
actions developed by health services.

We apply action procedures for each risk inherent to theperformance of each job following the model set by the
Spanish Institute of Occupational Health and Safety (INSST).
To address risks for which there is no official guidance, we

Our intranet provides employees with myriad healthpromotion initiatives and access to all resources, in addition to
training campaigns.

Cepsa’s Medical Service has in-house health professionals
available to answer any type of health-related query.

HEALTH PROMOTION PROGRAMMES
Employee emotional support programmes via a specialised external service or services for work-life balance orfamily care, aligned with the mitigation of new psychosocial risks.
We added a comprehensive health test to our annual health check-ups following the INSST model.
Healthy food options in the kitchens and restaurants at our workplaces.
Awareness campaigns.
Mindfulness sessions held by a team of volunteers, who provide virtual sessions available to all staff.

Appendix 3.7 Becoming a zero-accident workplace1042022 INTEGRATED MANAGEMENT REPORT

3.4.3 Consumer health and safety
GRI: 3-3, 416-1. SASB: RT-CH-410B.2

Our Customer Relationship Policy sets out our consumer
protection commitments.
We conduct a rigorous product assessment to ensurethat our products are safe for health and the environment
throughout their life cycle. To do so, we have a series ofinternal procedures, such as the General Product Stewardship
Procedure.
We have yet to record any incident related to impacts on
health of our goods and services.

In 2022, we drafted Product Regulatory Information
Sheet (PRIS) documents with the regulatory information
applicable to each of our products. These documents, on
top of our Safety Data Sheets and specifications, provide acomprehensive view of all our products. In a bid to become
increasingly efficient and automate process, we also
developed a Material Safety Data Sheet (MSDS) tool. This
tool automatically contacts all chemical product suppliers torequest the MSDSs containing the product safety informationof the products supplied.

All information on product features is included in the Product
Safety Data Sheets we send to customers when they maketheir first purchase and whenever we make updates.

Appendix 3.7 Becoming a zero-accident workplace105

CHAPTER 3 Driving Positive Impact

3.5 FACILITATINGA SUSTAINABLE
SUPPLY CHAIN

GRI: 3-3, 2-6, 204-1, 414-2

2022 MILESTONES

Follow-up meetings with our
suppliers to enhance their ESG
performance.

Key indicators

New Supplier Campus:
sustainability training and learning
platform for suppliers with over 450
participants.

Real-time risk monitoring of morethan 500 suppliers, including humanrights risks.

2022

2021

Total procurement spending (€ million)

1,173

700

Suppliers in the company’s supply chain (nº)

3,288

2,856

35%

38%

Local suppliers (%)

Appendix 3.8 Facilitating a sustainable supply chain1062022 INTEGRATED MANAGEMENT REPORT

3.5.1 Procurement model
Our procurement model is designed not only to cover our
supply needs, but also to strengthen relations between
suppliers and our businesses, pursue automation, traceability
and transparency and help control risks related with the
supply chain.

We follow a mixed procurement approach that standardises
and coordinates the centralised and business-level purchasing
so as to streamline processes and maximise efficiency
through planning and early supplier involvement in new
projects.

We ensure the integrity and transparency of procurement processes
to foster free competition.

EXCELLENCE IN PROCUREMENT MANAGEMENT• Excellence of our procurement function is certified under UNE 15896 Value added purchasing
management, an audit which extended to our ISO 9001, ISO 14001, ISO 50001, EFQM, ISO 45001
certifications and the other standards applicable to our management system.
• In 2022, in a bid to enhance management excellence and step up our commitment to sustainableprocurement, our systems were audited under ISO 20400 standards.

EMBEDDING ESG INTO DECISION-MAKING
We give our suppliers a questionnaire to assess their ESG
performance and assign them an ESG score. The ESG scoreis uploaded to the procurement platform and as of 2022
assigned automatically to the award sheet for considerationin tenders. Suppliers with low scores are asked to attend
development meetings so they can improve their performance.

We also calculate added value by embedding ESG into
decision-making (Total Value of Ownership), promoting
sustainable procurement underpinned by a variety ofsustainability levers that were reviewed last year.

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CHAPTER 3 Driving Positive Impact

ESG TRAINING OF PROCUREMENT STAFF
Procurement staff receive ongoing ESG training. Generalcourses are imparted by Cepsa via the Cepsa Campus, while
specific training is given by the Procurement Academy.

In tandem, specific procurement programmes have been
added to address the new Supplier Code of Ethics and Conduct
and the new EU corporate sustainability due diligence andhuman rights due diligence directives.

WE LISTEN TO OUR STAKEHOLDERS AND SHARE BEST PRACTICESWe shared best practices with suppliers on an ongoing basis
in 2022 in order to instil ESG throughout the supply chain. We
also explained the company’s strategy, our commitments andthe road map for delivering our ESG targets.

We included suppliers in our annual stakeholder listening
sessions, to learn about and rank the topics that interest them
most and their expectations.

WEPIONEER
PROGRAMME: wePioneer
THE IMPORTANCE
OF RECOGNISINGLEADERSHIP - CIRCULARECONOMYWe held our fourth wePioneer
supplier recognition programmein 2022. This initiative is designed
to recognise suppliers for ESG
management excellence and fortheir commitments to sustainable
and responsible performance.
The topic this time was thecircular economy.

Appendix 3.8 Facilitating a sustainable supply chain1082022 INTEGRATED MANAGEMENT REPORT

3.5.2 Our supply chain1
Our supply chain comprises 3,288 suppliers, of which 1,729
are covered by our integrated management model. The rest,
which account for less than 1% of procurement spending, areincluded in tail spend.
Of the procurement volume (excluding raw materials
purchases), 76% goes to services. The rest goes to a range ofgoods, like materials, spare parts or equipment.
We segment our supply chain by criticality based on thefindings of comprehensive and continuous analysis of total
expenditure, geographic breakdown and core business asfollows:• Segments IV and V2. These are non-strategic suppliers,
but we monitor them for all operational, economic, healthand safety, environmental, cybersecurity and humanrights risks, and have risk cards for each. Some high-risk
segment IV suppliers are considered critical and managed
separately.
We also have regular reporting procedures, tools andsystems in place to control and monitor management
effectiveness throughout the supply chain. To ensure
continuous traceability, we monitor these reports, alongwith target and control compliance metrics or performanceindicators.

• Segments I, II and III. These make up roughly 16% of our
suppliers and over 85% of our annual spend. We gear
all our initiatives towards these segments and tailor
relationship models.

LOCAL PROCUREMENT
We encourage sourcing from local suppliers because of
its positive impact on the surrounding business landscape,not to mention the advantages this affords, e.g., facilitating
supply, increasing flexibility and guaranteeing response
times. Proximity to suppliers also helps us control country
risk: in 2022, no supplier posed extreme risk due to location.
To that end, we identify and evaluate procurement contracts
that can be managed locally and decide on specific initiatives
with local suppliers.

For locations around the world where the company has
significant operations3, we sourced approximately 87% fromdomestic suppliers. Specifically, 35% of the total spend waspurchased from suppliers based locally.
In Spain, our main market, 99% of suppliers were
Spanish, making up 99% of total expenditure managed
by Procurement. Nearly 40% of contracts were arranged
with suppliers located near a Cepsa operation (Palos de la
Frontera, Gibraltar - San Roque and Tenerife).

The procurement teams were decentralised in Chemicals and Exploration & Production, although the approach to procurement management and processes has notchanged. Excluded from this report are data on SEA (Thailand, Singapore and Malaysia), as Cepsa no longer has assets in those locations. Amounts shown for 2021
were only until the business was discontinued in the year’s first quarter.
Procurement figures exclude purchases of crude oil, raw materials and energy products and the related maritime shipping costs. Also excluded were expenses for primary logistics (CLH), financial products and services, Cepsa’s internal operations, donations and payments of taxes and duties. The amounts shown are the amounts
arranged in the procurement contracts; i.e., not the amounts invoiced.

1 

We have come up with a more effective way of managing segment V suppliers, included in the tail spend, by leveraging automation and digitalisation to pinpoint andprioritise certified sustainable products. Tail spend includes suppliers with procurement contracts under €25,000.

2 

Locations with significant operations are the main sites where Cepsa has industrial plants and Exploration & Production assets. For the purposes of this report, thoselocations are Spain, Portugal, Colombia, Peru, Brazil, China and Canada.

3 

109

CHAPTER 3 Driving Positive Impact

Geographic breakdown of suppliers in 2022

8%

35%

46%

Spain
Americas
EuropeAsia and Oceania

11%

We only enter into contracts with non-domestic suppliers
for goods, equipment or services that are highly specialised
or rely on multinational technology, e.g., catalysts, industrial

chemicals, specialised control equipment and systems andlicences.

Appendix 3.8 Facilitating a sustainable supply chain1102022 INTEGRATED MANAGEMENT REPORT

3.5.3 Positive supplier relations
A key commitment of our Sustainable Procurement Policy
is to promote best practices in the purchase and contractingof goods and services through responsible and sustainable
management. Our Supplier Code of Ethics and Conduct
furthers our commitment to ethics and transmitting values.
Our specific procurement requirements are standardised
and laid down in the General Contracting Terms and ourcontractual models and must be accepted by any third party
that does business with Cepsa during both the registrationand the various tender award stages1.

We stress to all our suppliers the importance of good ESG
performance in their own operations and of requiring similar
standards within their own supply chains.
We use an analytical process to identify specific areas
requiring action and help forge partnerships to drive
collaborative innovation and embed ESG criteria indecision-making.

We follow a four-step supplier relationship management process:1

Registration
and approval

2

Risk segmentationand control

ESG
questionnaire

Supplier
segmentation

Level ofrelated risk

Ongoing risk
assessment

3

Performance
evaluation

4

Evaluationof quality,
execution
and ESGperformanceof active
suppliers

Audit

Compliancewithinternationallyaccepted ESG
standards

REGISTRATION AND APPROVALThis step entails laying down aspects suppliers must fulfil toensure that they commit to the company’s requirements andto guarantee an acceptable level of related risk.

had an ESG score, which was above our 60% target for theyear, and the score is available automatically in the award
sheets for consideration in decision-making.

All registered suppliers must fill out ESG questionnaires
tailored to their level. Over 62% of active suppliers in 2022

Tier 2 suppliers that access our facilities deemed critical are subject to the same requirements, procedures, codes and policies.

1 

111

CHAPTER 3 Driving Positive Impact

RISK SEGMENTATION AND CONTROL
We segment suppliers by risk level and type to identify
critical suppliers. These comprise suppliers in the main
segments I, II and III, and certain high-risk segment IV
suppliers and contingency or conditional suppliers, for which
there are no alternative suppliers. The main contractors
accessing our facilities (Tier 2 suppliers) are also considered
critical suppliers.
This step includes ongoing assessment of active suppliers for
operational, economic, ESG, country, information security andcounterparty (KYC, Know Your Counterparty) risks.

We have added a new approach for assessing human rights
risk and observance of due diligence.
We performed risk assessments on 2,830 active suppliers in
2022 and additional. In 2022, a total of 2,830 active suppliers
were risk-assessed. Additional compliance analysis was
conducted on a further 278 suppliers, cross-checking againstinternational lists, framed by the KYC procedure.
We did not uncover any Cepsa supplier with high or very highrisk. Average supplier risk for 2022 was medium-low.

PERFORMANCE EVALUATION
We have an evaluation plan for active suppliers that factors
in quality, execution and ESG issues. We included evaluationof Tier 2 suppliers’ work at our facilities for our main
contractors.

Accordingly, 99% of our critical suppliers have undergone atleast one performance evaluation, which is in line with ourtarget of screening at least 99% of these suppliers, including
an assessment of ESG issues.

Over the course of 2022, we conducted 1,473 evaluationsof 666 suppliers, of which 560 were due to their criticality.

AUDITS
Lastly, we carry out audits to ensure that suppliers meet
our requirements following a procedure for compliance withinternationally accepted ESG standards.

suppliers how to do so. The target is to keep a level of 80%
of non-conformities in audit reports over the past two years
closed. We closed 82% of non-conformities in 2022.

We carried out 160 on-site audits in 2022. By year-end, we
had audited a total of 215 active suppliers. Audit findings arevalid for 24 months, during which we help suppliers address
any non-conformities. Action plans are drawn up for these
suppliers and evidence that they have been implemented
must be provided before the non-conformity can be closed.
We proactively encourage closing non-conformities and advise

At the end of 2021, the audit plan was expanded to include a
new specific procedure regarding the ESG questionnaire used
to assign supplier scores. We held 62 development meetings
with suppliers in 2022 that helped us verify their performancein these areas and pinpoint opportunities for improvement.
Each supplier was given a detailed report outlining theappropriate recommendations to consider in their operations.

Appendix 3.8 Facilitating a sustainable supply chain1122022 INTEGRATED MANAGEMENT REPORT

3.6 BEHAVINGETHICALLY ANDRESPECTFULLY

2022 MILESTONES

Organisation of thecompany’s seventh
Ethics Day The 2022
edition pivoted aroundinappropriate workplace
conduct.

Renewal of thecompany’s UNE
19601 and ISO 37001
certifications.

Key indicators

Extension of thecompliance training
catalogue and topics.

Completion of our humanrights assessment
methodology, which isaligned with the UN Guiding
Principles on Business andHuman Rights.

2022

2021

Code of Ethics breach complaints received (nº)

102

113

Requests for ethics advice (nº)

177

134

10

10

1,419

370

Internal audit projects with an anti-corruption/anti-fraudcomponent (nº)
Income tax paid by the company (€ million)

Appendix 3.9 Behaving ethically and respectfully

113

CHAPTER 3 Driving Positive Impact

3.6.1 Ethics in our day-to-day operations
GRI: 2-15, 2-23, 2-24, 2-26. 3-3, 205-1, SASB: EM-EP-510a.2

We are strongly committed to ensuring compliance with thelaw and our in-house policies, commitments and values withthe aim of nurturing a culture genuinely based on ethics,
honesty and transparency. We take a zero-tolerance stancetowards any form of inappropriate conduct.
We are creating a culture in which any breach must bereported without fear of disclosure or retaliation, when madein good faith, a culture in which honesty is invoked to rally our
employees around the idea that they should do things rightout of conviction rather than any fear of punishment.
Our Code of Ethics and Conduct1 and our compliance policies
guide how we conduct ourselves in the workplace. They
embody applicable best practices and the values that ourshareholders, duly represented in our Board of Directors, want
us to embrace. Because it is important that our employees
and managers are familiar with and understand their contents,
we run continuous training and awareness initiatives on boththe intranet and the corporate website. We also urge formal
endorsement as a way of setting an example with a very highpercentage of staff taking that step.
We also call on our other partners and stakeholders to makea similar commitment by asking them to sign our Code of

Ethics and Conduct as well as our Supplier Code of Ethics
and Conduct, which sets out the specific commitments
and conduct suppliers must uphold in their dealings with
Cepsa; that endorsement is made official during the suppliercertification process. The contracts governing businessdealings with third parties include specific clauses regarding
compliance with our principles.
The Code prioritises the performance of due diligence withthird parties before arranging any business transactions,framed by the precautionary principle and by human rights
safeguards.

2.3 Sustainability-aligned
policies

Corporate Policies
on Cepsa’s corporate website

SEVENTH ETHICS DAY EVENTThe seventh edition of our Ethics Day event focused on inappropriate workplace conduct, explaining the origin of suchconduct, the role our brain plays in it and the keys and tools for a positive outcome. We also acknowledged employee
commitment to ethics with our Compliance Believer 2022 awards. The closing remarks at the award ceremony, which wasattended by several members of our Management Committee, were given by the chair of the Audit, Compliance, Ethics andRisk Committee, who is also one of the company’s independent directors.

1

Approved by the Board of Directors. The Code applies to Cepsa, the subsidiaries it effectively controls, their directors and employees and legally-bound third parties.

1142022 INTEGRATED MANAGEMENT REPORTETHICS AND COMPLIANCE CHANNEL AND GRIEVANCE MANAGEMENT
We have an Ethics and Compliance Channel, which any
employee or third party can use to notify us of inappropriate
behaviour or other breaches of the Code of Ethics andConduct, prevailing legislation and Cepsa’s body of
in-house rules and regulations. All notifications are handled
confidentially and can be made anonymously.
The Channel is available online 24 hours a day, 365 daysa year and there are versions in Spanish, English, French andPortuguese. There is also a hotline, manned 24/7, managed
by an independent third party, which can be contacted fromany country.

A recent survey about ethical matters revealed that ouremployees know where to go if they have a question orconcern about a compliance issue (93%).

The Channel is managed entirely by the Ethics
and Compliance Office, which reports functionally to theBoard’s Audit, Compliance, Ethics and Risk Committee.

Once a complaint and/or query has been received throughthe Ethics and Compliance Channel, the Ethics andCompliance Office initiates the process with a first review
or preliminary analysis. Subsequently, the Office can closethe case if it finds no evidence or decide that there areclear indications that the case should be brought to theinvestigation unit in order to obtain a definitive ruling. Lastly,
once the investigation unit has reported its findings, theOffice reports to the pertinent body.

We inform our stakeholders about the Channel over our
website as well as in the contracts that govern our businessdealings and provide our employees and suppliers withrelated training.

Cepsa takes a zero-tolerance stance towards any retaliation
against whistle-blowers, to which end it has put in place thesafeguards stipulated in Spanish law protecting corruption
whistleblowers, in line with the contents of Directive (EU)2019/1937 of the European Parliament and of the Councilof 23 October 2019 on the protection of persons who reportbreaches of Union law.

EXTERNAL AUDITS AND CERTIFICATIONS
We have a compliance management system which articulates
the prevention and management mechanisms needed totackle the risk of compliance breaches or inappropriate
conduct.
In 2022, we renewed the UNE 19601 and ISO 37001
certifications underpinning our corporate criminal risk andanti-bribery management systems, respectively, evidencing
our strong commitment to creating a corporate culture basedon integrity, transparency and compliance.
In addition, our Crime Prevention Model is audited annually byan independent expert and the scope of that review is being
expanded each year.

ANTI-FRAUD AND ANTI-CORRUPTION EFFORTOur Bribery, Corruption and Conflict of Interest Prevention
Policy establishes rules of conduct and our commitments inthis area.

We monitor country risk in terms of money laundering,corruption and international sanctions and publish theresults of that analysis in a quarterly internal newsletter.

One line of initiative is the performance of audits to assess
corporate crime risks, specifically including those relatedwith corruption in both the private and public spheres. We
have also tested the effectiveness of the control environment
in place at our companies1, an exercise that did not reveal
any significant corruption risks.

Every year we assess the risk of fraud, factoring in the maininternal and external factors that may have had an influenceduring the intervening period, testing the effectiveness of theinternal control model, analysing the reports received via
the Ethics and Compliance Channel and conducting audits.
That effort is set down in the fraud risk map and a specificanti-fraud plan.

We also run counterparty analysis, known as Trade Controls,
which tests for bribery and corruption risks in order to assign
integrity risk scores to our business partners.

Compañía Española de Petróleos S.A., Cepsa Comercial Petróleo S.A.U., Cepsa Química S.A., Cepsa Trading S.A.U., Cepsa Business Services S.A.U., Fundación Cepsa,
Cepsa Colombia S.A., Ressa S.A., CEDIPSA, Cepsa Gas Comercializadora S.A., Cepsa Gas y Electricidad S.A., Cepsa Aviación S.A., Spanish Intoplane Services, S.L.U.,
CMD S.L., Petrocan S.A., Cepsa Petronuba S.A., Atlas, S,A., Cepsa Bioenergía San Roque, S.L.U., GEPESA S.A., Cepsa Algerie, S.L. and Cepsa Rhourde El Rouni, S.L.U.

1 

115

CHAPTER 3 Driving Positive Impact

KEY MEASURES AGAINST CORRUPTION,
BRIBERY AND MONEY LAUNDERING
IN 2022•

Awareness drives such as communication of the Ethics and Compliance Channel statistics and outcomesfor 2021 and organisation of a new edition of Ethics Day.

•

Provision of online training to employees addressing crime prevention and to suppliers dealing with integrityin business.

•

Provision of training on International Sanctions & Trade Controls to critical business areas.

•

Assessment of the performance of the specific controls put in place, via the Crime Prevention Model, to mitigate
corruption risks.

•

Review, update and publication of the Trade Controls procedure.

•

Payment intervention procedure for freezing and analysing all payments made by the Foundation.

Note, lastly, that Cepsa neither finances nor lends any formof support, directly or indirectly, to unions, public officials,
politicians, political parties or their representatives and/or

candidates, advisors or any other person carrying out publicduties or confidantes thereof.

CONFLICTS OF INTEREST
Our Bribery, Corruption and Conflict of Interest Prevention
Policy and our Policy on Related Party Transactions andIntragroup Transactions, both of which are Board-approved,
set out the procedures for preventing and/or handling thepotential conflicts of interest faced by our shareholders,
directors, executives and other employees in the course of
their dealings with Cepsa, as well as those that could arise
with customers, suppliers and other stakeholders.
Both policies stipulate that, in the event of a conflict ofinterest, the conflicted party must abstain from the relateddeliberations and decision-making and must not gain accessto confidential information. They are further required toact transparently, take the initiative to report any potential
conflicts and collaborate on their resolution.
In parallel, our policy requires our professionals andstakeholders to proactively disclose any potential conflicting
interests by contacting their immediate superiors or reaching

116

Appendix 3.9 Ethics in our
day-to-day operations

out to the Ethics and Compliance Office. In addition, thecompany’s executives, department heads and at-risk business
units are asked to fill out a questionnaire annually declaring
any potential conflicts of interest.
In 2022, we identified several conflicts of interest derived
from relationships between employees with decision-making
power and third parties, individuals and companies alike. In all
instances the affected parties were briefed and safeguards
were put in place with the help of our Human Resources
Department and the employees’ superiors.

2022 INTEGRATED MANAGEMENT REPORT

3.6.2 Human rights
GRI 2-23, 2-26, 3-3, SASB: EM-EP-210a.3

Our new Human Rights Policy, which is aligned with international standards and practices, sets down our human rights
commitments. It governs the conduct required of our employees and of the third parties we engage with everywhere we dobusiness and our commitment to performing due diligence to enforce those rules.

COMMITTED TO COMPLIANCE WITH THE MOST DEMANDING
INTERNATIONAL PRACTICESWhen formulating our new policy, we adapted its scope of application and rules of conduct to the most advanced
international practices:•

United Nations Universal Declaration of Human Rights.

•

International Labour Organization (ILO) Declaration of Fundamental Principles and Rights at Work.

•OECD Guidelines for Multinational Enterprises.

•

United Nations Global Compact Principles, which we endorsed in 2005.

•

United Nations Declaration on the Rights of Indigenous Peoples.

•

ILO Convention no. 169 on Indigenous and Tribal Peoples.

•2030 Agenda and Sustainable Development Goals (SDGs).

•

Voluntary Principles on Security and Human Rights.

As in prior years, we did not identify any irregularities or human rights
violations across our operations in 2022

117

CHAPTER 3 Driving Positive Impact

IMPACT ASSESSMENT AND DUE DILIGENCE
We have defined methodology, aligned with the UN Guiding
Principles on Business and Human Rights, for assessing ourhuman rights impacts.
That methodology comprises three core elements: (i) anassessment of human rights impacts in our own operations;(ii) an assessment of human rights impacts in mergers &acquisitions; and (iii) human rights-focused due diligence in the
supply chain and dealings with other counterparties.
Our methodological approach leads us to work in a proactive,
standard and structured manner on the identification,
prevention and mitigation of adverse consequences, and our
response to their materialisation.

SECURITY AND HUMAN RIGHTS
We have a Security Policy and specific rules governing the
conduct of security staff, who must possess high levels oftechnical and professional expertise, as well as proven humanrights acumen. Those requirements extend to outsourced
security staff.
We likewise follow the Voluntary Principles on Security
and Human Rights guidelines to ensure safety across ouroperations and we are in the process of becoming an Engaged
Company, a milestone expected to occur in 2023.
The ability to accurately assess the risks present in ouroperating environment is essential for the safety of our people,
local communities and assets. Our risk assessment examines
risks for both the company and for our business communities
and encompasses the risk of ‘corporate complicity’, meaning
118

Appendix 3.9.4
Human rights

the indirect involvement of the company in incidents relatedwith human rights, even if the abuse takes place at acontractor. In this manner we aim to take as broad as possible
an approach to human rights threats.
To that end, our private security providers must be aware ofand agree to abide by the Voluntary Principles on Security and
Human Rights.

2022 INTEGRATED MANAGEMENT REPORT

3.6.3 Fiscal transparency and responsibility
GRI: 207-1, 207-2, 207-3, 3-3

We are aware of the social utility of the tax contributions wemake everywhere we do business as they help maintain public
employment and ensure basic services that benefit citizens,families and society at large.
To that end, our Corporate Tax Policy, approved by the Board of
Directors in 2021, sets down our tax strategy and commitment

to apply best tax practices. That strategy, which is actively
communicated across Cepsa’s various committees and bodies,
meets all aspects of applicable tax regulations while upholding
the company’s interests and ensuring delivery of our long-termbusiness targets, duly avoiding tax risks and inefficiencies in
the course of doing business.

GOVERNANCE AND CONTROL

Cepsa’s Board of Directors is kept abreast of the company’s tax policies
and criteria and the level of compliance with the Corporate Tax Policy.

The tax unit is in charge of regularly ensuring and reviewingthat the company’s tax principles and management
procedures, which are based on international standards, areapplied adequately in transactions in progress. Compliancewith tax legislation is guaranteed by means of a range of
mechanisms outlined in the Internal Control and Integrated
Risk Management systems.

The Audit, Compliance, Ethics and Risk Committee receives
an annual report on the performance of those systems andmechanisms and on the design and efficiency of the controls put
in place.

New investments must pass a series of approvals, specifically
including analysis of the potential tax implications. Investment
proposals are assessed and must be signed off on by theInvestment Committee before they are submitted forauthorisation by Cepsa’s Management Committee or its Boardof Directors.

•

Update of the tax risk map within the risk maps of Cepsa
and all of its business units and lines.

•

Ex-ante identification of the effect of tax risks on
formulation or attainment of the company’s strategic lines
of initiative.

Compliance with tax regulations is guaranteed by the rangeof mechanisms set down in the Internal Control System andthe Integrated Risk Management System, framed by the
ERM Framework (Enterprise Risk Management – Integrated
Framework) of the Committee of Sponsoring Organizationsof the Treadway Commission (COSO II).

•

Mandatory inclusion of the tax risk analysis associated withnew investments.

•

Formulation of plans for risk management and mitigation.

In addition, we have implemented a tool for facilitating tax
management and reinforcing both control and oversight ofcompliance with our tax obligations. We have also drawn up
a specific map of tax risks which is presented to and validated
by the company’s Risk Committee.

The following activities are part of the process ofcommunicating tax risks to the Board of Directors:

The company’s tax situation is subjected to a series of review
filters. Firstly, an internal review is conducted to verify its
correctness. Secondly, a review by the independent external
auditor is carried out as part of its annual audit reports for eachgroup company and for the consolidated financial statements.
Lastly, the tax situation is reviewed regularly by the authorities
in the various jurisdictions where the group does business byboth their tax management and inspection teams.

Appendix 5 Internal control system
119CHAPTER 3 Driving Positive Impact

GOOD TAX PRACTICES AND COLLABORATION WITH THE TAX AUTHORITIESWe want our business communities to understand what we doand how we contribute to their social wellbeing. We prioritise
collaboration with the authorities and civil society to boost
transparency around how we do business.
We strive to maintain constructive relationships with the
tax authorities in our business markets in a bid to maximise
consensus and align interpretations of tax rules.

To that end we participate in official initiatives in order tocreate understanding and save time and effort for everyone
involved.
In the event of discrepancies in interpretation, we share ourtechnical viewpoint, fostering collaboration and understanding
and leaving the door open to friendly agreements with thevarious tax authorities involved.

GOVERNMENT PAYMENT REPORT FOR EXPLORATION& PRODUCTION ACTIVITIESWe provide information about all payments for all items made to the various authorities in the markets where
we do business.

TAX TRANSPARENCY
Transparency is an essential part of how we conduct ourselves.
We are committed to helping the various stakeholders
understand our tax policy and the specific outcomes it leads

to. We publish all the tax-related information required underapplicable regulations and the voluntary agreements we haveendorsed.

CODE OF GOOD TAX PRACTICES AND
TRANSPARENCY REPORT
We have endorsed Spain’s Code of Good Tax Practices and submit an Annual Tax Transparency Report to thetax authorities.

120

2022 INTEGRATED MANAGEMENT REPORTTAX CONTRIBUTION
Cepsa paid a total of €1.42 billion of corporate income tax in 2022, broken down as follows by country.
Corporate tax paid country by country (€ million)1
2022

2021

150

42

Algeria244

66

Brazil95Canada16

10

Colombia

24

2

United Arab Emirates

939

239

Italy

2

1

Morocco10Netherlands

1

1

Peru

13

7

Portugal

15

4

UK

4

1

Singapore

1

1

Thailand

0

-9

TOTAL

1,419

370

Spain
2

Country-by-country report

In 2022, Cepsa paid €3.77 billion euros of tax, including income
tax, and collected a further €2.89 billion.

In addition to corporate income tax, we bear other taxes,
most importantly excise duty. We are also tasked withcollecting certain other taxes which we later pay tothe competent tax authorities.

Tax borne and collected (€ million)]Tax borne (€ million)
Corporateincome tax

Tax collected (€ million)

Excise duty

Other

TOTAL

VAT

Excise duty

Other

TOTAL

1,419 2,257

92

3,768

2,333

409

144

2,886

The exchange rate used to translate taxes paid in currencies other than the euro was the average monthly rate.

1 

Includes the tax rates applicable to earnings from the production of oil and gas, which are higher than the general rates.

2 

121

CHAPTER 3 Driving Positive Impact

3.7 LOCALCOMMUNITY
RELATIONSGRI 2-25, 3-3, 203-2, 413-1 SASB: RT CH-210a.1, EM-EP-210b.1

2022 MILESTONES

We launched the Sumamos
Energías programme tointegrate our renewable energy
projects into their local surroundings.

We completed a social impact
assessment covering 2008-2021
in Caracara (Colombia).
That study, focused on three
indicators - social inclusion, poverty
and abilities - concluded that thecommunity management undertaken
by Cepsa has made a positive
contribution to all three.

Our activities have an impact on the surrounding
communities. That is why we prioritise proactive
management of those impacts, assessing risks and fostering
the creation of opportunities in our local communities.
We become part of society in the countries and regions where
we do business to create collaborative environments and122

Execution of our exit from the
El Portón, Jilguero and Puntero
blocks (Casanare, Colombia)
and from the San Alejandro
well (Peru). We abandoned thoseinstallations without any social orenvironmental incidents or liabilities, instringent compliance with the approved
abandonment plans and framed bycircular economy principles.

facilitate local wealth creation. We respect all cultures andkeep communication channels open at all times with a viewto identifying and responding to local community concerns.
In addition, we invest in community projects to respond to
the needs and priorities of local society, so reinforcing ourcommitment to the latter.

2022 INTEGRATED MANAGEMENT REPORTDIALOGUE WITH LOCAL COMMUNITIESOur Society Relations Manual is the rulebook that sets
down the guidelines for engaging with local and indigenous
communities.
Identification and prioritisation of our stakeholders lays thefoundations for establishing an appropriate relationshipthat is conducive to understanding those communities andworking to respond to their needs. We pay particular attention
to the local communities in our operations’ areas of influence.
Transparency and communication are fundamental.

Our relationship-building and communication activities at our
main industrial facilities are articulated around institutional
dialogue with both the local authorities and provincial
and regional administrations and with the people living
in neighbouring areas with a view to providing a constantflow of information about our activities. We have specificcommunication tools such as liaison committees with thecommunities close to our industrial complexes, open day
events and seminars.

SUMAMOS ENERGÍAS
We started up the Sumamos Energías programme withthe aim of maximising the integration of our renewablefacilities into their surroundings and helping to create
opportunities for socio-economic development andgrowth in the local communities where we carry out
renewable projects. The initiative comprises threemain commitments:• To drive the socio-economic development of thecommunities where plants are to be located.
• To protect the environment and biodiversity,
minimising our impact on ecological habitats.
• To ensure transparency, reporting to andcommunication with all stakeholders.

In our Exploration & Production business we provide
experts to reach out to local communities and address theirconcerns, questions and suggestions about our projects
and their impact on them. Those teams take a number ofproactive actions to foster community participation, focusing
on specific stakeholders including local residents, local andregional authorities, contractors, landowners, traditional
leaders and, where appropriate, farming and indigenous
communities.
For example, we have implemented formal community
engagement programmes, framed by our Community

Management Plan, at all of our assets with local
communities within their direct area of influence, whichmeans all of the operations being carried out in Colombia andPeru.
Stakeholder participation in our Exploration & Production
business is based on holding frequent briefing meetings
to address operational matters, carrying out community
investment initiatives, providing local hiring opportunities andcreating jobs for the neighbouring communities. We groupthose stakeholders into local authorities, local communities,
contractors and local business owners.
123

CHAPTER 3 Driving Positive Impact

INDIGENOUS COMMUNITIESThere are no indigenous communities in the direct area ofinfluence of our operating assets. However, the Wacoyo
indigenous reservation borders the Caracara block in
Colombia. That community is defined as a stakeholder andas such is covered by the core principles and pillars of our
Community Management Plan. That has led to a close
relationship with that community, including the provision ofsocial support in the form of voluntary community investment
campaigns.
Moreover, when necessary, the company has a specific priorconsultation procedure which encourages early entry into thesites of ethnic communities where there are plans to carryout any manner of studies and/or oil and gas exploration,
production and/or transportation projects. The overriding

goal is to generate trust, prevent misinformation, manage
expectations, generate effective and formal (documented)
participation and respect traditions and customs to present
ethnic and cultural integrity.
Indigenous community participation is encouraged by meansof recurring assemblies and round table events to which theentire community and their leaders are invited, free fromany form of gender bias or any other class of discrimination.
Those meetings address indigenous community concerns
about community investment, job opportunities and the scopefor supplying goods and services. The conclusions reached atthose meetings are set down in formal agreements which wethen execute and monitor.

RISK MANAGEMENT AND SOCIAL IMPACTS
We identify and analyse the social risks associated with ouractivities as part of the environmental and social permitting
process which is part of the project investment and execution
phases and, periodically, whenever there are any significant
changes in the stakeholder or social context at the local,
regional or national levels.
In Exploration & Production, our Community Management
Plan lays down the key lines of action applicable to all
the operations we carry out in Colombia and Peru. That
Plan is structured into four cross-cutting lines of action environment reconnaissance; stakeholder engagement, risk
and impact management; and due diligence - and seven goodpractices - early entry into the area of influence, stakeholder
engagement, prior community consultation, job creation
locally and regionally, local and regional sourcing of goods
and services, community investment and management ofrequests, grievances and enquiries.
Note that 100% of the operations carried out by the
Exploration & Production business that have local
communities in their area of influence have had theirrespective environmental and social impact studies approvedby the competent authorities, a process which involves local
community consultation and outreach programmes.

SOCIAL IMPACT ASSESSMENT IN COLOMBIAIn 2022, we completed a social impact assessmentwith respect to the local communities in areas of direct
influence and indigenous communities in the area of
indirect influence of the Caracara block (Colombia),
specifically in the town of Puerto Gaitán (Meta). The
goal of the assessment, carried out by the Amanecer
Foundation, was to understand the magnitude of thepositive and negative effects associated with thecommunity management effort made between 2008
and 2021 and determine areas for improvement inupcoming developments.
The study, which focused on three indicators, social
inclusion, poverty and capabilities, shows that the124

community management strategy had a positive
impact on all three in both the local and indigenous
communities, contributing to the eradication of poverty.
Those results are largely attributable to the systematichiring of unskilled local labour and local sourcing ofgoods and services at all our operations, as well as tothe development of productive projects in Colombia.
Those projects, after seven years of implementing
sustainable tropical farming tools, have enabled 160
beneficiary families to generate sustainable productive
units, so becoming self-sufficient in basic consumer
products, and sparked the creation of associations(Acapropuga and Asagua), further reinforcing theirsustainability.

2022 INTEGRATED MANAGEMENT REPORTCOMMUNITY WORK AT THE OPERATIONAL LEVELThe company’s community work at its operations is driven bylegal requirements and our permits, in all instances framedby the premise of contributing to development in the areas
where we have operations and, thereby, to the communities
living there, understanding the diversity of populations in thoseterritories in order to make increasingly intelligent and efficient
community investments.
Those initiatives are designed to strengthen our ties withsociety and contribute to the various communities’ social andeconomic development, factoring in the different priorities
set by the various governments. The bulk of our operationslevel community investments are concentrated at our assets
in Colombia and Peru, where we structure our work aroundeight lines of initiative focused on operational viability andproject sustainability: human development; community- andinstitutional-building; health; income generation; culture andtourism; education; environment; and sports and leisure.

PROJECT SUMMER IN PERU
In 2022, we executed the first edition Project Summer in Pueblo de Macuya,
a population within the area of influence of the Los Ángeles field, in Peru. That planconsisted of the upgrade of eight neighbourhood routes (12 km of roadway). It was,moreover, the first project to take the form of a public-private partnership, thanks tocollaboration between the Ministry of Energy and Mining, the Peruvian army, local town
councils and Cepsa. The project directly benefitted 1,200 families whose livelihoods arefarming and fishing and who need those roads in order to sell their products in good
health and safety conditions all year round.
Planning is already underway for the second edition of Project Summer, which
will upgrade a further 18 km of roadways, this time with the local and regional
governments helping with the funding. That achievement is largely attributable
to the systematic hiring of unskilled local labour and local sourcing of goods
and services at all our operations, as well as to the development of productive
projects in Colombia, which, after seven years of implementing sustainable
tropical farming tools, have enabled 160 beneficiary families to generate
sustainable productive units.

Community work at the operational level
Investment (€)
Direct beneficiaries (nº)
Indirect beneficiaries (nº)
Collaborating entities (nº)
Initiatives executed (nº)

Community work at
the voluntary level

2022

2021

235,480
49,650249,96976
39

574,317
13,49540,882
47
55

Appendix 3.10 Local
community relations
125

CHAPTER 3 Driving Positive Impact

3.8 P
 OSITIVE IMPACT
ON SOCIETY - CEPSAFOUNDATIONGRI 3-3, 203-2

2022 MILESTONES

Just Transition Observatory.
Sponsored by the Cepsa Foundation,
the observatory studies citizens’
perception about the green
transition process, complemented bypublications and seminars. The firststudy analysed how the citizens ofAndalusia view the transition.

Certification by Lealtad
Instituciones. The Cepsa Foundation
earned this seal having complied withthis organisation’s seven principles oftransparency and good practices.

organised a conference cycle withleading innovative companies andthe academic community in order tofoster connections between the worldof academic research and industrial
interests.

Key indicators

2022

2021

Social contribution (€ million)

4.5

4.5

94.72%

87.18%

Voluntary social contribution (%)

126

Rollout of the Lets Connect I+I
programme together with the
CSIC’s General Foundation. We

2022 INTEGRATED MANAGEMENT REPORTThe Cepsa Foundation’s strategy complements our Positive
Motion strategy, enabling us to offer a holistic and coordinatedresponse to the most important challenges facing society.
The overriding goals are to facilitate Cepsa’s connection withsociety and generate a positive impact.

Framed by that cohesive strategy, we identify the priority
lines of initiative for the Foundation, aligned with thecompany’s corporate management, in order to leverage bothorganisations’ strengths and bolster our impact.

In recent years, the Foundation’s projects have pivoted around three aims:
Social support
We work to raise the social wellbeing of vulnerable
groups and support society in social or climate
emergencies. We also drive sustainable mobility andenergy and responsible production and consumption
initiatives by means of awareness campaigns. Our
volunteering programme, Voluntas, also falls into thiscategory.
Positive environmental impact
We champion biodiversity and ecosystem recovery bymeans of a number of natural habitat preservation
initiatives. That work has materialised in ongoingprojects in Madrevieja (San Roque) and the Primera
de Palos Lake (Huelva), rounded off with reforestation
drives and sustainable farming training. We also work
to raise awareness about environmental and circular
economy issues, targeting them at the general public
as well as at school-goers and professionals.

In that same vein, we extended our relations with stakeholders
by adding new ecological transition organisations to ourcollaborative map. In parallel, we made progress on our goal

Science learning
We prioritise innovation and research initiatives andencourage STEM (science, technology, engineeringand mathematics) studies with a focus on vulnerable
groups and girls. The impetus we give to research inareas of interest to Cepsa and broader society, muchof which channelled through the Cepsa Foundation
Chair, is a good example of how the Foundation is
strategically coordinated with the company’s Positive
Motion strategy.
We also have a cross-cutting line of initiative which integrates
the above three areas of action:
Just green transition
In 2022, we reinforced our commitment to this crosscutting line of initiative, recasting some of our mostestablished projects to zero in on energy efficiency,
circular economy criteria and climate change action.

of improving how we assess and select projects by choosing
an impact measurement methodology that we will start toapply from 2023.

VOLUNTEERING FOR
ENERGY EFFICIENCY
As part of our Voluntas programme, in partnership with
ECODES, company volunteers help underprivileged
families to save energy. Our volunteers receive training
on energy saving measures, efficient consumer habits,
electricity bills and available discounts and then help
carry out energy efficiency assessments in theirhomes. After gathering the required information,
the volunteers then issue a report on the energy
efficiency status of the vulnerable household inquestion, along with a series of recommendations
and an estimation of the resulting savings. The
participating families also receive personalised
energy efficiency kits.

127

CHAPTER 3 Driving Positive Impact

Spotlight on the rollout of the Just Transition Observatory.
In line with our cross-cutting line of initiative - Just green
transition - this Observatory studies how citizens perceive
the green transition, generates publications and organises
seminars. Our first study looked at perceptions among
citizens in Andalusia (Spain), the aim being to manage thechange and prevent potential conflicts, while also generating
recommendations for articulating the development plans of
the various agents involved in the just green transition thrust.
Also worth highlighting is the Let’s Connect I+I programme.
Reinforcing our collaboration with the General Foundation of
CSIC, the Spanish National Research Council, we encouraged
connections between the world of academic researchCommunity work at the voluntary level
Investment (€ million)
Direct beneficiaries (nº)
Indirect beneficiaries (nº)
Corporate volunteering initiatives (nº)
Collaborating entities (nº)
Employees participating in voluntary initiatives
Non-employees participating in voluntary initiatives(former employees and relatives of current employees)

Community work at
the operational level
128

and industrial interests and convergence between public
and private agents around innovation needs and benefits
by organising a conference cycle with leading corporate
innovators and the academic community.
Lastly, we earned certification from Lealtad Instituciones,
an organisation that analyses and certifies foundations’management transparency and practices, by meetingits seven principles: trust organisation and governance;social purpose clarity and messaging; activity planningand monitoring; accountability and information accuracy;transparency around financing; fund usage checks andbalances; and compliance with legal obligations.

2022

2021

4.2
121,744364,861
24
154
318
109

3.9
116,387
349,043
13
167
213
63

Appendix 3.11 Positive impact
on society - Cepsa Foundation

2022 INTEGRATED MANAGEMENT REPORT

3.9 T
 HE GLOBALAGENDA: ALIGNEDWITH THE SDGs

We are working towards delivery of all of the Sustainable
Development Goals (SDGs). However, we are prioritisingthose that are directly related with our business activities,
our strategic priorities and our stakeholders’ expectations.

Goal 7

AFFORDABLE AND CLEAN ENERGY (SDG 7)
Underpinned by our Positive Motion strategy, we have identified different ways of producing affordable
and sustainable energy for us and for our customers, using, for example, renewable hydrogen, biofuels
and solar and wind power. Thanks to the scale and efficiency of our production facilities, we will makethose fuels at competitive prices and supply households and businesses alike.

Goal 8DECENT WORK AND ECONOMIC GROWTH (SDG 8)
We are focused on making sure our employees feel well and safe at work and are paid fairly for theirexperience and performance. The promotion of equality and inclusion are priority aspects of our people
management effort. We work with our suppliers and partners to stimulate economic growth along our
supply chain.

Goal 12RESPONSIBLE CONSUMPTION AND PRODUCTION (SDG 12)
We are able to produce and develop greener energy and solutions that support the energy transition,fight climate change and mitigate energy saving impacts.

Goal 13

CLIMATE ACTION (SDG 13)
We are reducing our carbon emissions in line with international agreements such as the Paris Climate
Agreement. We are also helping our customers in heavy industry and the transport sector reduce theirgreenhouse gas emissions.
129

04
FINANCIAL AND BUSINESSPERFORMANCE

130

4.1 Business environment

132

4.2 Economic and operational performance

138

4.3 Analysis of consolidated results

140

4.6 Liquidity and capital resources148

Financial
andbusiness
performance

CHAPTER 4 Financial and business performance

4.1 BUSINESSENVIRONMENT

4.1.1 Global macroeconomic environment
After a year of strong growth in 2021, the global economy
was expected to gain momentum from the second quarter of2022 on, rapidly absorbing the impact of the Omicron variant.
Since then, however, the economic outlook has steadily

132

deteriorated, due largely to the geopolitical situation between
Russia and Ukraine, which has triggered a humanitarian
tragedy in eastern Europe, and the sanctions put in place topressure Russia into ceasing its hostilities.

2022 INTEGRATED MANAGEMENT REPORTThat crisis is unfolding as the global economy recovers
gradually from the COVID-19 pandemic, a process marked
by significant differences between advanced and emerging
economies. Elsewhere, lockdowns in China as part of its strictzero-COVID policy further undermined growth last year.
Those circumstances combined to spark a widespreadincrease in energy prices for much of the year, in turnprompting many central banks to tighten their monetary
policies. As a result, the global economy bucked expectations
and slowed across the board in 2022, with inflation reaching
the highest levels in a decade.
In its most recent set of macroeconomic forecasts, the World
Bank1 reports global growth of 2.9% in 2022 (down from 5.9%
in 2021), forecasting an even more pronounced slowdown ingrowth, to 1.7%, in 2023. That is the lowest growth rate inthree decades outside the years of the COVID-19 and financial
crises. That forecast is 1.3 percentage points below the WorldBank’s previous forecast, made six months earlier.
Weakness in the leading economies or an increase ingeopolitical tensions could push the global economy into
recession. However, China reopened its borders in January2023, a development expected to have a positive impact on its
economy.
Inflation started to rise sharply again from June 2022,
averaging over 9% during the second half of the year, fuelledmainly by the growth in energy and food prices, affected by
the situation in eastern Europe. Inflation has been spreading
and intensifying, with the prices of many goods and services
rising considerably.
The World Bank expects average inflation to fall from 7.6% in2022 to 5.2% in 2023 and 3.2% in 2024. Specifically, it expects
energy prices to correct sharply throughout 2023, helping

1

to push headline inflation considerably lower. Nevertheless,inflation is expected to remain high in the medium term inadvanced, emerging and developing economies alike. In Spain,
inflation ended the year at 5.7% year-on-year, down morethan one point from the November reading, to put the averagerate for 2022 at 8.4%, the highest in 36 years.
Monetary policy was tightened in many countries during thesecond half of the year in a bid to curb rampant inflation, withthe main central banks increasing their benchmark rates anumber of times. The universe of risks facing the economy
has increased considerably and the room for policy mitigation
is narrowing.
In light of those circumstances, multilateral efforts remain
essential to responding to the humanitarian crisis, preventing
greater economic fragmentation, preserving global liquidity,
managing debt, tackling the climate crisis and putting an end
to the pandemic.
As for the Spanish economy, the International Monetary Fund(IMF) expects the country’s GDP to drop from 5.2% in 2022
to 1.1% in 2023 (down 0.1pp from its last forecast). For 2024,
it is forecasting GDP growth of 2.4%, down 0.2pp from its
previous forecast.
In line with the IMF, the Bank of Spain has been flagging
uncertainties around the economic outlook, particularly
how events play out in eastern Europe and the economic
repercussions. Against that backdrop, the Bank of Spain has
trimmed its growth forecasts and is currently estimating
growth of 4.6%, 1.3% and 2.7% in 2022, 2023 and 2024,
respectively (5.4%, 3.9% and 1.8% in its December report).
It has also increased its inflation forecasts: inflation is now
expected to fall from 8.4% in 2022 to 4.9% in 2023 and 3.6%
in 2024 (3.7%, 1.2% and 1.5% as of December).

Global Economics Prospects. January 2023.
133

CHAPTER 4 Financial and business performance

4.1.2 Sector environment
OIL PRICES (BRENT) AND SUPPLYThe chart below depicts the trend in Brent crude oil prices over the past two years
Brent $/bbl
140.00120.00100.00
80.00
60.00
40.00
20.00

Prices started 2022 at high levels due to the recovery indemand in the wake of the pandemic, coupled with the quota
cuts announced by OPEC in 2021. That situation, exacerbatedby the prevailing uncertainty, saw prices rally to levels notseen since 2008.
Other factors shaping the market included the shortage ofsupplies on account of the situation in Ukraine, the strengthof the dollar and Chinese economic weakness. The recovery
of demand to pre-pandemic levels and the production cutsannounced by OPEC+ (2 million barrels per day) kept prices
high for much of the year.
However, the main trigger for the price rally was the onset ofthe crisis in eastern Europe, a situation which led to the West
imposing economic sanctions on Russia. Those sanctions,against one of the world’s biggest oil and gas producers, sent
prices soaring to over 130 $/bbl in early March. Those events,
coupled with the prospect of a global recession and tightermonetary policy, weighed on prices.
Towards the end of the year, however, supply exceeded
demand by more than 1 million barrels per day (“mb/d”),
despite the OPEC cuts and supply interruptions in the US due
to inclement weather. In parallel, the zero-COVID policies
134

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OCT. 22

AUG. 22JUN. 22

APR. 22

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DEC. 21

OCT. 21

AUG. 21JUN. 21

APR. 21

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0.00

implemented in several Chinese cities had a significant
impact on demand, driving prices lower towards the end of
the year.
Global oil supply growth is expected to ease to 1 mb/d in
2023, having jumped by 4.7 mb/d in 2022, led by OPEC+. The
overall increase of 1.9 mb/d in non-OPEC+ producer nations
is expected be partially offset by a reduction of 870 kb/d in
OPEC+ production due to the drop anticipated in Russia.
So far in 2023, oil futures have once again risen sharply,
pointing to Brent prices of close to $90/b. The main
contributing factors have been the reopening of the Chinese
economy and brighter prospects for global growth.
In addition, the EU ban on the purchase of Russian oil and gas
takes effect from 5 February 2023, rounding out the embargo
in Russian oil and the price cap of $60/b already in placesince December 2022. That ban is expected to drive pricetightening, particularly in diesel products.
While lower oil prices provide relief for consumers facing
surging inflation, the overall impact of the embargoes on
Russian oil and product supplies remains to be seen.

2022 INTEGRATED MANAGEMENT REPORTTREND IN GLOBAL OIL AND GAS PRODUCTION AND DEMANDWorld liquid fuels production and consumption balance
Million barrels per day

World production

World consumption
Forecast

105
100
95
90
85

2018

2019

2020

Q4

Q2

Q3

Q1

Q3

2023

Q4

Q1

Q2

Q3

2022

Q4

Q1

Q2

Q3

2021

Q4

Q1

Q2

Q4

Q2

Q3

Q1

Q4

Q2

Q3

Q1

Q4

Q2

Q3

Q1

0

2024

Source: US Energy Information Administration.

Global crude oil inventories are expected to increase in2023, specifically by 0.6 mb/d on average, as production is
expected to outpace consumption.
In October 2022, OPEC+ announced production cuts of 2.0
mb/d in a signal of strength to the market in a complex
environment shaped by falling prices, concerns over demand
trends, production issues and sanctions on Russian oil. Thatcut was ratified at a meeting held on 1 February 2023.
In its January 2023 report, the US government’s Energy
Information Administration (EIA) estimated average global
liquid fuels production at 102.8 million barrels per day(b/d) in 2024, compared to 100mb/d in 2022, driven bysignificant growth in non-OPEC+ output. However, there islingering uncertainty around Russian oil supply, particularly
in early 2023. Global liquid fuels consumption, meanwhile,
is forecast to increase from 99.4 mb/d on average in 2022 to102.2 mb/d in 2024.

The slow recovery in demand anticipated in the firsthalf of 2023 foreshadows an ongoing accumulation of
inventories such as that observed from the third quarterof 2022. Demand for oil spiked during the third quarterof 2022 thanks to stronger than expected transport fuelconsumption in the OECD. In the fourth quarter, OECD
demand fell back by 900 kb/d, shaped by weak industrial
activity and weather conditions, whereas in non-OECD
countries, demand firmed by 500 kb/d.
According to the International Energy Agency (IEA),
global demand for oil will increase by 1.9 mb/d in 2023 to arecord 101.7 mb/d. Almost half of that demand is expected
come from China after lifting its COVID restrictions. Aircraft
fuel remains the biggest source of growth: an increase of
840 kb/d.

135

CHAPTER 4 Financial and business performance

REGULATIONS
The regulatory landscape is becoming increasingly
complex and influential in the energy industry, primarily
in developed economies, where (ever more unpredictable)
new regulations, environmental requirements and technicalproduct specifications are becoming more and more
stringent, while the market is demanding cleaner products.
Between COP-21 (held in Paris in 2015) and COP-26,
organised in Glasgow at the end of 2021, energy transition
has been climbing agendas worldwide, in line with growing
social and political awareness. COP-26 went a step further
by bringing forward the requirement to revise carbon
emission action plans for 2030 to year-end 2022, insteadof 2025, as established in Paris. Against that backdrop,
governments are legislating with a strong focus on theenergy transition.

In parallel, financial institutions are tightening their lending
criteria, layering in sustainability demands.
We are working to foster and facilitate the energy transition
inside and outside of the organisation, as was evident inpresentation last March of our Positive Motion strategy,
articulated around company transformation and ambitious
emission reduction targets in response to climate change.
In a pioneering move in October 2022, we agreed theextension of our syndicated loan, agreeing for the first time
to tie its financial cost to delivery of environmental and social
indicators.

REFINING MARGINSThe European refining market faces a structural drop-off
in demand, which is expected to peak in 2030 and thenstart to trend lower. While the main threats come fromsurplus refining capacity in Europe and new refineries in
Asia, the above-mentioned regulatory thrust, coupled withincreasingly stringent environmental requirements, aresignificantly impacting refining margins and their variability.
In 2022, refining margins began low. However, the economic
recovery in the West sparked strong demand which improved
the industry’s outlook and drove margin expansion.
During the first quarter, Brent prices shot up to 10-year
highs, reaching $130/b, fuelled mainly by the recovery indemand and significant tension in the European oil and gas
markets, heavily dependent on Russian crude and distillates.
136

Although the initial sanctions against Russia had little effecton energy commodities, they did steer the market to a newphase, piling further pressure on the energy markets. Energy
product prices, such as TTF (the natural gas benchmark
in Europe), reached unprecedented levels, significantly
impacting European refining margins. Exceptionally low
stocks of light and middle distillates worldwide drove
growth in jet, gasoil and petrol crack spreads, driving refining
margins to relatively high levels.
The second quarter was marked by stagnation in the armed
conflict and an increasingly tight macroeconomic situation.
Historically-low light and middle distillate inventories andgrowth in demand, helped by the start of the summer season
in the US, drove product spreads to unprecedented levels,
further bolstering refining margins.

2022 INTEGRATED MANAGEMENT REPORTAt the end of the first half a new package of sanctions waslevied on Russia with the aim of banning crude and distilled
product imports by the end of the year, while the flow ofgas from Russia to Europe, primarily via the Nord Stream
1 pipeline, faced several cuts. All that put further pressure
on the main energy commodities in Europe, fuelling energy
costs and driving refining margins to all-time highs.
In the third quarter, refining margins eased but remained
at historically high levels, shaped mainly by the growthin energy costs, especially natural gas and electricity, a
reduction in light and middle distillate spreads and a drop in
oil and gas prices against the backdrop of ongoing volatility.
Global distillate production rebounded while demand that
continued to ease, weighed down by new lockdowns in China.

Margins likewise remained high during the fourth quarter,
buoyed by government aid and strong spreads (in light andmiddle distillates), in turn underpinned by restrictions on thepurchase of Russian oil and gas from the end of the year andthe reopening of China after ditching its zero-COVID policy.
2023 is expected to be another year of relatively highmargins, underpinned by historically-low oil and gas
product inventory levels. Margins are expected to easein the following years due to the forecast slowdown ineconomic growth and elimination of the global supply chain
bottlenecks.

EXCHANGE RATESThe euro weakened against the dollar in early 2022, hurt
by the fallout from the Omicron variant, which hit Europe
hard towards the end of 2021. The Federal Reserve’s
rate tightening in 2022, more aggressive than that of theEuropean Central Bank, designed to mitigate the impact of

rampant inflation and the energy crisis derived from the war
in Ukraine, caused the euro to fall below parity against the
dollar. However, the European single currency rebounded
towards the end of 2022, ending the year at $/€1.07.

Exchange rate evolution $ / €
1.25
1.20
1.15
1.10
1.05
1.00
0.95
0.90
0.85
DEC. 22

OCT. 22

AUG. 22JUN. 22

APR. 22

FEB. 22

DEC. 21

OCT. 21

AUG. 21JUN. 21

APR. 21

FEB. 21

DEC. 200.80

137CHAPTER 4 Financial and business performance

4.2 E
 CONOMIC ANDOPERATIONALPERFORMANCE

Results (million of euros)

2022

2021

Revenues (*)

33,446

24,532

EBITDA IFRS (**)

3,262

2,194

Clean CCS EBITDA

2,939

1,815

Net income IFRS

1,100

661

Clean CCS Net income

790

310

Financial data (million of euros)

2022

2021

Share capital

268

268

Total equity attributable to shareholds of the parent

4,706

4,170

Net financial debt excluding IFRS 16 impact

2,756

2,759

IFRS Capital Employed

8,283

7,753

Cash Flow from operations

1,549

1,306

Free Cash Flow

901

915

Investments during the year

743

473

Sustainable

185

126

Growth327

175

Maintenance

231

172

(*) Excise tax oil and gas included(**) International Financial Reporting Standars

1382022 INTEGRATED MANAGEMENT REPORT

Environment data

2022

2021

Dated Brent oil price ($/bbl)

101.2

70.7

Annual average exchange rate (€/$)

1.05

1.18

Spanish pool price (€/MWh)

167.5

111.9

Dutch TTF Natural Gas price (€/MWh)

120.5

45.7

Markets and business data

2022

2021

Working interest crude production (kbopd)

82.8

73.9

Net entitlement Crude Oil prod. (kbopd)

69.6

61.3

Realized oil price ($/bbl)

97.7

68.2

Crude Oil Sales (million bbl)

22.3

18.7

Crude oil distilled (million of barrels)

151.1

145.2

Refining output (mton)

20.7

20.3

Refining utilization (%)

84%

81%

Refining margin ($/bbl)

9.6

3.7

Commercial product sales (mton)

17.7

16.2

Chemical products sales (mton)

2.5

2.9

Electricity production (GWh)

2,896

2,719

Installed renewable power capacity (MW)

28.9

28.9

25,46834,374Natural Gas Sales (GWh)139

CHAPTER 4 Financial and business performance

4.3 A
 NALYSIS OFCONSOLIDATEDRESULTSA) OVERALL TREND DURING THE YEAR
Million of euros
Key Indicators

Revenues (*)

Clean CCS EBITDA

EBITDA IFRS (**)

Clean CCS Net income

Net income IFRSCash Flow from operations

Free cash flow

Investments during the year

2022

2021

33,446

24,532

2,939

1,815

3,262

2,194

790

310

1,100

661

1,549

1,306

901

915

743

473

(*) Excise tax oil and gas included(**) International Financial Reporting Standars

Cepsa registered a significant increase in EBITDA during2022 to €2,939m versus €1,815m in 2021 (+62%), as aresult of improved market conditions and higher commodity
prices and refining margins, while management-led
optimization initiatives continued to contribute to improved
performance in all business and functional areas.
IFRS EBITDA stood at €3,262m.

140

CCS Net Income in 2022 was €790m, a significant
improvement versus €310m registered in 2021, boosted byhigher EBITDA and improved equity subsidiaries results. IFRSNet Income was €1,100m.
Cash flow from operations after working capital stood at€1,549m, a 19% increase from 2021 due to improved results,
although impacted by higher tax payments, particularly in
the Upstream business.

2022 INTEGRATED MANAGEMENT REPORT

Capex increased during the year to €743m, as Cepsa grewits investments on sustainable businesses as it starts toimplement its 2030 Positive Motion strategy. With regards

to M&A activities, Cepsa acquired the 28% stake which it
did not own of its LAB Chemical subsidiary in Brazil, Deten
Química, from Petrobas.

The segment breakdown of adjusted EBITDA and Profit/(loss) is as follows:
Million of euros
2022

2021

1,868

905

Energy828

570

Chemicals

382

461

Corporation

(139)

(121)

Clean CCS EBITDA

2,939

1,815

Exploration & Production

These follows a breakdown of investments by business segment:
Million of euros
2022

2021

Energy365

249

Sustainable

111

62

Growth49

52

Maintenance

205

135

Chemicals

169

61

Sustainable

68

61

Growth101-

Exploration&Production

183

140

Growth171

116

Maintenance1224

Corporation

26

23

Sustainable

5

3

Growth6

7

Maintenance

14

13

Total

743

473

141

CHAPTER 4 Financial and business performanceB) REPLACEMENT COST ADJUSTMENTS AND NON-RECURRING ITEMS
Million of euros
2022

2021

2,939

1,815

CCS adjustment (replacement cost valuation)

480

470

Non-recurring items

(158)

(92)

3,262

2,193

Clean CCS EBITDA

EBITDA IFRS (*)(*) International Financial Reporting Standars

Non-recurring items include the difference in the value of
inventories between the average cost method used in theConsolidated Financial Statements and the replacement cost
method used to measure operating segments.
The replacement cost method provides a more realistic picture
and therefore a better understanding of the underlying of
performance of the business segments, while assists when
making comparisons between years. In the replacement
cost method, the cost of sales is determined with reference
to average monthly prices rather than the historical value
derived from the accounting valuation method. Consequently,
the adjustment to replacement cost is determined as thedifference between these two methods.

142

Additionally, the Group considers as “Others non-recurring
items” those detailed in Note 6.3 of the 2022 Consolidated
Financial Statements. Highlight in 2022 the exceptional
expenses associated with the transformation process in which
the Group is immersed, the purpose of which is to provide thebusinesses with greater flexibility.
In the case of companies accounted for using the Equity
Method, the adjustments are the same as above, i.e.,
adjustment to the replacement cost and asset impairment onthese companies’ profits.

2022 INTEGRATED MANAGEMENT REPORTC) SEGMENT REPORTING

ENERGY SOLUTIONS
Key indicators

2022

2021

Crude oil distilled (million of barrels)

151.1

145.2

Refining utilization (%)

84%

81%

Refining output (mton)

20.7

20.3

Refining margin ($/bbl)

9.6

3.7

Natural Gas Sales (GWh)

25,46834,374

Electricity production (GWh)

2,896

2,719

Installed renewable power capacity (MW)

28.9

28.9

Spanish pool price (€/MWh)

167.5

111.9

Dutch TTF Natural gas price (€/MWh)

120.5

45.7

Product sales (million of tons)

17.7

16.2

Fuels and motor fuels (million of tons)

9.6

9.3

Bunker sales (millions of tons)

3.9

3.7

Jet fuels (millions of tons)

2.5

1.4

Others (millions of tons)

1.7

1.8

1,760

1,753

Clean CCS EBITDA (million of euros)

828

570

Investments for the period (million of euros)

365

249

Growth49

52

Maintenance

205

135

Sustainable

111

62

Number of service stations

143

CHAPTER 4 Financial and business performance

Operations
The Energy Parks business registered very positive results
due to the improvement in market refining margins versus
2021. Refining margins for 2022 stood at 9.6$/bbl versus the
3.7$/bbl seen in the previous year. Refining operations during
the period also improved, with utilization averaging 84% of
installed capacity, an increase of 4% over the same periodof 2021.

€50 cts/l, of which €20 cts/l were born by the Governmentof Spain, and an additional €30 cts/l provided by Cepsa,
allowing over 12 million customers to save more than
€130m.

Volumes sold across the Commercial and Mobility segments
increased during the year in sync with Spanish fuel demand(+4% vs 2021), with sales totaling 17.7mt in 2022 vs 16.2mt
in 2021, an increase of 9%, benefiting from the extraordinary
discounts offered by Cepsa. Since April 2022, Cepsa offeredspecial fuel discounts whereby customers received up to

As per the Gas & Power business, Spanish electricity pool
prices were remarkably higher versus last year, due to therise in gas prices, with an average of 167.5 €/MWh in 2022
compared to 111.9 €/MWh in 2021 (+50%). Cepsa increased
its power production increased to 2,896GWh, +7% comparedwith 2021.

The Trading business registered strong performance in 2022,
benefiting from a more volatile market environment.

Results
Adjusted EBITDA evolution Dic21 - Dic22 (M€)

489

30

12
828

(130)
(143)

570

2021
Clean CCS
EBITDA

MargineffectCurrency

Clean CCS EBITDA for Cepsa’s Energy segment stoodat €828m during the year, a meaningful increase of 45%
compared with the €570m of 2021, in sync with demand andmargin recovery.

144

Volumeeffect

Opex

Provisions
and others

2022
Clean CCS
EBITDA

Capex for the year stood at €365m, 46% higher whencompared to 2021. Sustainable capex increased by 79%
vs the previous year, mainly focused on the deployment of
the company’s EV chargers network and other sustainable
investments.

2022 INTEGRATED MANAGEMENT REPORTCHEMICALS
Key indicators

2022

2021

Product sales (kton)

2.49

2.94

LAB / LABSA

0.66

0.67

Phenol / Acetone

1.31

1.61

Solvents

0.52

0.66

Clean CCS EBITDA (million of euros)

382

461

Investments for the period (million of euros)

169

61

Growth101-

Sustainable

68

61

Operations
In 2022, overall performance in Chemicals showed resiliency,
especially in the Surfactants segment, despite the unfavorable
market context.

Total product sales decreased by 15% compared to 2021,
mainly due the inflationary environment and the energy crisis,
which negatively impacted demand and margins, especially in
the Intermediates segment.

Results
Adjusted EBITDA Dic21 - Dic22 (M€)

58
461
382

(38)

Clean CCS
EBITDA
2021

Currency

Margineffect(56)

VolumeeffectChemicals Clean CCS EBITDA stood at €382m in 2022, below
the €461m registered in 2021, mainly as a consequence of the
impact of increased energy costs and inflationary pressures,
together with the fall in demand in the Intermediates segment,
which has weighed on results.

(42)

(1)

Opex

OthersClean CCS
EBITDA
2022

Capex in 2022 stood at €169m, 179% above 2021 figure mainly
due to the acquisition of a 28% stake in Deten.

145

CHAPTER 4 Financial and business performance

EXPLORATION AND PRODUCTION
Key indicators

2022

2021

Working interest crude production (kbopd)

82.8

73.9

MENA

75.7

65.9

LatAm

7.1

8.0

Net entitlement Crude Oil prod. (kbopd)

69.6

61.3

Crude Oil Sales (million bbl)

22.3

18.7

Realized oil price ($/bbl)

97.7

68.2

Dated Brent oil price ($/bbl)

101.2

70.7

Clean CCS EBITDA (million of euros)

1,868

905

183

140

Growth171

116

Maintenance1224

Investments for the period (million of euros)

Operations
WI Production for the year reached 82.8 kbopd, representing
an increase of 12% compared to the previous year (73.9
kbopd in 2021), benefitting from lower OPEC production
restrictions, ramp-up production in Abu Dhabi and operational
improvements in the fields to reduce natural decline.

Crude prices during 2022 stood at 101.2 $/bbl (+43% YoY) due
to the geopolitical tensions in Europe and the increase in global
oil demand after Covid-19.
Two exploration wells (Rasper and Baja-1) were drilled during
Q3’22 in the offshore Block-53 in Suriname. On August 23rd an
oil discovery at Baja-1 was announced by Apache Corporation,
Block-53 operator.

Results
Adjusted EBITDA evolution Dec21 - Dec22 (M€)
284

192

1,868

Currency

Clean CCS
EBITDA
2022

5
(17)

498

905

Clean CCS
EBITDA
2021

Price
effectVolumeeffect/activity

Opex, Transportand Structure

Significant improvement in Clean CCS EBITDA up to €1,868m(+106%) compared to €905m in 2021 due to the increase in
crude prices (+43%), WI production (+12%) and cost efficiencies
measures.
146

Provisions

Capex during the year was mainly related to field’sdevelopment in Abu Dhabi, the drilling of two exploration wells
in Suriname and anticipation of Latam abandonment plan.

2022 INTEGRATED MANAGEMENT REPORTD) CONSOLIDATED GROUP ROACEThe Group’s return on average capital employed is reflected in the following Adjusted ROACE:
Million of euros
12.31.2022
Adjusted
ROACE=

Adjusted Net Operating Profit
Average Adjusted Capital EmployedThis metric is used by Group management to assess thecapacity of operating assets to generate profits and is

=

927
8,018

12.31.2021

=

453
11.6%

=

5.9%

7,616

therefore a measure of the efficiency of invested capital(equity and debt).

E) TREASURY SHARESAt year-end 2022, the Company holds 168,760 treasury
shares. These shares represent 0.03% of the share capital.
At December 31, 2021, the Company held 156,671 treasury
shares and its wholly-owned subsidiary “Magna Expergere,
S.A.U.” held 400,000 shares of the Company.

The treasury shares correspond to new shares, from capitalincreases carried out during the year 2021, and acquired by
the Company to give greater flexibility to its shareholding
structure.

F) SUBSEQUENT EVENTS
Pursuant to the application of the temporary energy tax, the
CEPSA Group must pay this tax during the first twenty daysof September 2023 in accordance with its 2022 revenue,
making an advance payment of 50% during the first twenty
days of February. The total amount payable on the 2022 tax is
approximately 324 million euros.
On January 5, 2023, the Company signed an agreement tosell its 20% interest in the Satah Al Razboot (SARB), Umm
Lulu, Bin Nasher and Al Bateel concession. It is expected to
be in a position to close the transaction within the following
weeks upon obtaining all necessary approvals and fulfilmentof remaining conditions precedent included in the agreement.
Thereafter, all rights and obligations related to the concession
will be owned by the purchaser.

Subject to completion of the abovementioned SARB and
Umm Lulu transaction, CEPSA will be in a position to sign anagreement for the sale of an indirect 12.88% interest in the
Mubarraz concession, through the sale of shares representing
20% of the share capital of Cosmo Abu Dhabi Energy
Exploration & Production Co. Ltd. This transaction will be
subject to the relevant administrative approvals and fulfilmentof other customary conditions precedent.
On February 1, 2023, the Shareholders’ Meeting accepted
the resignation tendered by Mr. Joost Dröge from the Boardof Directors. On that same date, the Shareholders appointed
Mr. Gregory Nikodem as a director, for a six-year term, in
accordance with the Company’s Articles of Association.

147

CHAPTER 4 Financial and business performance

4.4 LIQUIDITY
AND CAPITALRESOURCESA) CASH FLOWSMillion of euros
2022

2021

3,262

2,194

23

15

(1,419)

(372)

22

45

CF from operating activities before working capital

1,887

1,881

Changes in operational working capital

(338)

(575)

Cash flow from operating activities

1,549

1,306

Payments for investing activities

(653)

(501)

4

110

(648)

(391)

Free cash flow before dividends and financing activities

901

915

Interest paid

(121)

(93)

IFRS 16 debt payments

(159)

(134)

Dividends paid

(588)

(528)

Proceeds/repayment of borrowings

(225)

(870)

Total Cash Flow from financing(1,092)(1,624)

(192)

(710)

EBITDA IFRSDividends received
Income tax payments/collections
Other operating cash flows

Charges for divestments
Total cash flows used in investing activities

Net increase / (decrease) in cash and cash equivalents
1482022 INTEGRATED MANAGEMENT REPORT

Cash flow from operations before working capital improved to€1,887m on the back of improved results, despite the negative
impact of higher tax payments.
Capex payments in 2022 were above those of 2021 (€648m
in 2022 vs €391m last year) due to the acquisition of the
28% stake in Deten activities and the increase in sustainable
investments as Cepsa started to implement its Positive Motion

strategy. As such, sustainable capex payments for the year
were €125m, representing 19% of the total amount.
Free Cash Flow before dividends and financing activities stoodat €901m, in line with previous year, despite higher taxes andthe referred increase in capex related to Deten acquisition.
Dividends paid amounted to €588m, resulting in a positive Net
Free Cash flow for the year.

B) FINANCIAL POSITION
Net financial debt at 31 December 2022 stood at 2,756 million
euros, similar to the figure as of December 2021 (2,759 million

euros). Net financial debt including IFRS 16 liabilities amounts
to 3,450 million euros (3,446 million euros in 2021).

This chart shows the debt trend based on sources and applications of funds:

Net Debt evolution Dec21 - Dec22 (M€)

2,759

588

94

2,756

Dividends
paid

Currency &othersNet Debt
Dec 2022

694

3,450

IFRS 16
impactNet Debt
Dec 2022 &IFRS 16280
648(1,549)Net Debt
Dec 2021

Cash flowfromoperations

Investments/
Divestments

Cost ofdebt

149

CHAPTER 4 Financial and business performanceC) DEBT STRUCTURE AND MAIN FINANCIAL TRANSACTIONS
I. DEBT STRUCTURE AND MATURITIESNet debt by currency and interest rate as of 31 December 2022 is analyzed below (including the impact of related derivatives andexcluding IFRS 16 liabilities):

Net debt breakdown by currency

Net debt breakdown by interest rate

5%
16%

28%

USD

Floating
rate

CNY

72%

EUR

79%

Fixed
rate

Maturities of gross debt are as follows (million €):
2,000

256
501
217

500

476

295
518

Cash

400

500
556

2023
Cash

139

165

2024

2025

2026

Bank drawn debt

27

52

2029

2030+

206

158

2027

2028

Bonds

Undrawn
committed lines

Cepsa has sufficient liquidity to cover maturities until 2027. As of 31st December 2022, the company had an average maturity of
its Net Debt of 3.5 years.

1502022 INTEGRATED MANAGEMENT REPORT

II. MAIN FINANCIAL TRANSACTIONSIn 2022, as has been customary since the signing of the
2 billion euro syndicated revolving credit facility in 2014,
approval was received from the 18 banks participating in thisfacility to extend its maturity for a further year and, for the
first time, it has been agreed that its economic conditions
will be linked to the fulfillment of environmental and social
indicators. With unanimous consent therefrom, the maturity
was extended to September 2027, notably improving CEPSA’s
liquidity quality. Of this amount, there were no amounts drawn
down at the date of this document.
On September 13, 2022, CEPSA Finance launched a tender
offer to repurchase part of its 2028 notes at a price of 85% of

its face value, for a maximum amount of 100 million euros.
The purpose of the Offer was to decrease the Group’s grossdebt and is intended to optimize the Group’s balance sheet
structure. The offer was completed on September 20, and theentire target amount was repurchased at the offer price. The
shares are listed on Euronext Dublin.
Our bonds are rated “Investment Grade” by the three maininternational rating agencies Moody’s, S&P and Fitch. CEPSA’s
Investment Grade rating has been confirmed for 2022
following reviews in March, April and August by Fitch, S&P
and Moody’s, respectively.

151

CHAPTER 4 Financial and business performanceD) FINANCIAL AUTONOMY RATIO AND LEVERAGE RATIOThe financial autonomy ratio (including IFRS 16 liabilities),
expressed as the ratio of net debt to capital employed (definedas net debt plus equity), stood at 41.7% at year-end 2022,

compared with 44% in 2021. This decrease is mainly due toimproved results versus the previous year.

Gearing ratio

Million of euros
2022

2021

3,210

3,818

Current bank borrowings

717

285

Cash and cash equivalents

(476)

(657)

Net debt

3,451

3,446

Equity

4,832

4,307

Capital Employed IFRS

8,283

7,753

Net Debt/(net debt +Equity)		

41.7%

44.4%

694

687

Net debt paid (*)

2,756

2,759

Capital Employed IFRS (*)

7,588

7,066

Net Debt/(net debt +Equity) (*)

36.3%

39.0%

Non-current bank borrowings

IFRS 16 impact in net debt(*) Excluding IFRS 16 impact

Cepsa has achieved a very meaningful improvement in its
leverage ratios since 2021, due to a material improvement in
EBITDA.

Net debt to EBITDA ratio (excluding IFRS 16 liabilities) has
gone from 1.64x in December 2021 to 0.99x in December
2022.

Leverage ratio

Million of euros
2022

2021

Net debt

3,451

3,446

Adjusted EBITDA

2,939

1,815

Net debt / Adjusted EBITDA ratio

1.17x

1.90x

Net debt*

2,756

2,759

Adjusted EBITDA*

2,780

1,681

Net debt / Adjusted EBITDA ratio*

0.99x

1.64x

(*) Excluding IFRS 16 impact1522022 INTEGRATED MANAGEMENT REPORTE) CAPITAL EMPLOYEDIn 2022, the Group’s Capital Employed stood at 8,283 million
euros (considering the effect of IFRS 16), compared with 7,753

million euros in December 2021. The segment breakdown is asfollows:
Million of euros
EnergyChemicals

Exploration &Production

Corporation

Total

Capital Employed at 12/31/2022

4,659

1,478

2,293

(147)

8,283

Capital Employed at 12/31/2021

4,419

1,308

1,977

49

7,753

240

170

316

(196)

530

Capital Employed IFRS by business segments

Variation 2022-2021

Shareholders’ equity attributed to the parent company amounted to 4,706 million euros at year-end, which therefore financed
56% of the capital employed at that date.

153

05
APPENDIX

154

Appendix 1 About this report

156

Appendix 2 Materiality

158

Appendix 3 Sustainability performance160

Appendix 4 Detailed information about
the company’s key risks

254

Appendix 5 Internal control information

257

Appendix 6 Additional financial information

261

Appendix 7 Country by country tax report266

Appendix 8 Sustainability index
and contents271

Appendix

CHAPTER 5 Appendix

5. APPENDIX
APPENDIX 1. ABOUT THIS REPORTGRI: 2-2, 2-4, 2-14

Criteria and standards used to prepare this report
Our 2022 Integrated Report reaffirms our commitment to transparency and responds to our stakeholders’ qualitative and quantitative information requests and needs.
New this year, we provide disclosures regarding our Positive Motion strategy, conceived to make us leaders in mobility and sustainable energy in Spain and Portugal and abenchmark for transition. We furnish relevant information about our new organisational structure, designed to enable us to continue to generate value, our businesses’
performance during the year, the economic, environmental and social impacts they generated and the initiatives put in place to manage them. We also aligned the report’s
contents for the updated version of the Global Reporting Initiative (GRI) Standards and broadened certain disclosures as recommended by the Task Force on Climaterelated Financial Disclosure (TCFD). In addition, we voluntarily included the absolute and relative amounts of eligible turnover, capital expenditure (CapEx) and operating
expenditure (OpEx) as per the EU Taxonomy, specifically in accordance with Annexes I and II of Commission Delegated Regulation (EC) 2021/2178, of 6 July 2021.
The disclosures provided in this report likewise comply with the company's requirements under Spanish Law 11/2018 on non-financial and diversity reporting. As
stipulated in that piece of legislation, our Board of Directors is the governing body that authorises the issue of this Integrated Report, following prior review and approval by
the Audit, Compliance, Ethics and Risk (ACER) Committee, at the same time as it authorises the issue of the annual financial statements for submission at the General
Shareholders’ Meeting, so upholding the company’s obligation to subject its non-financial information to the same approval, registration and publication criteria as its
financial information.
[For further information, refer to Appendix 7. Sustainability index and contents]
This document includes non-financial information additional to that required under applicable prevailing company law. It was drawn up in on the basis of the revised 2021
version of the GRI Sustainability Reporting Standards, applicable from 2023, and includes the requirements set out in the Sector Standard for Oil and Gas (GRI 11). It
follows the GRI reporting principles for ensuring the quality and proper presentation of the reported information (accuracy, balance, clarity, comparability, completeness,sustainability context, timeliness and verifiability).
We also followed other widely regarded international reporting standards and frameworks: the International Integrated Reporting Framework, United Nations Global
Compact principles, Task Force on Climate-Related Financial Disclosures (TCFD) and the Sustainability Accounting Standards Board's (SASB) sector-specific standards
devised to help companies disclose financially-material sustainability information to investors. We also continued to report on our commitment and contribution todelivering the Sustainable Development Goals (SDGs).
The contents of this report were defined around the results of the company’s previously conduced materiality assessment. Materiality was assessed using a methodology
apt for covering and meeting all requirements under the GRI Standards and the GRI’s principles for defining sustainability report content (stakeholder inclusion,sustainability context, materiality and completeness).
The information included in the 2022 Integrated Report has been assured by an independent third party under ISAE 3000 (scope: limited assurance).

156

CHAPTER 5 Appendix

Entities included in Cepsa's sustainability reporting
The scope of the non-financial information includes the entities controlled by Cepsa that are consolidated using the full or proportionate consolidation method.
It includes entities that have staff costs and production, storage or trading facilities.
This 2022 Integrated Report therefore includes the consolidated information of all of Cepsa with respect to its businesses’ impacts and their performance along the
economic, environmental and social dimensions, as well as any additional information needed to facilitate reader understanding of its results and performance.
In the event that the scope of any of the metrics provided in this report differs from that outlined above, its specific scope is itemised in the corresponding chapter and in
the GRI, SASB and NFS content index. Likewise, any prior-year quantitative information that has been recalculated or restated is flagged in the corresponding chapter inorder to enhance comparability of information between reporting periods.

157

CHAPTER 5 Appendix

APPENDIX 2. MATERIALITY
GRI: 3-1, 3-2

How we determine our material topics
In 2022, we updated our corporate materiality assessment to factor in key trends and stakeholder expectations1. The conclusions from that process were used as thebasis for the contents of this report.
The GRI Standards’ guidance on the preparation of sustainability reports require reporting organisations to conduct a materiality assessment in order to determine which
content to address. That same requirement applies to the non-financial statements (NFS) drawn up by the companies subject to Spanish Law 11/2018, including Cepsa.
The materiality assessment methodology is purely data-based. To rank the topics by importance for the various stakeholders, previously identified and segmented, we
carried out surveys, benchmarked other sector players and analysed mandatory and voluntary regulations, news items and social media posts. To calibrate theirimportance for the company, the final assessment was undertaken directly by our Management Committee during a dedicated working session based on mattersweighted as a function of our corporate policies, our 2021 integrated report and our internal and external communication efforts during the past year.
That materiality assessment allowed us to determine the topics of greatest importance to the company and its stakeholders. We then categorised those topics as priority,
very important or important.

1

The stakeholders who participated in the material assessment included employees, banks, financial analysts, customers, local communities, environmental and social NGOs and suppliers. In addition to consulting thosestakeholders, who participated actively in the process, we conducted analysis based on data, legislation and regulations, industry peers, investors and advocacy groups.

158

CHAPTER 5 Appendix

2022 Materiality matrix

The changes with respect to the 2021 assessment: ‘Management of water resources’ and ‘Diversity and equal opportunities’ have been moved to the priority category,
while ‘Sustainable supply chain’ and ‘Talent management’ have been moved to the important category.

159

CHAPTER 5 Appendix

APPENDIX 3. SUSTAINABILITY PERFORMANCE
3.1 EU TAXONOMY
The EU Taxonomy Regulation is part of the European Commission’s Action Plan on sustainable finance designed to redirect capital flows towards the Sustainable
Development Goals and a carbon-neutral economy by 2050.
The EU Taxonomy is a system that classifies economic activities as environmentally sustainable. It introduces the following concepts:•

Taxonomy-eligible activities: those itemised in the delegated acts that supplement the Taxonomy Regulation (Regulation EU 852/2020);,•

Taxonomy-aligned activities: those that meet the following requirements:a.

They contribute substantially to one or more of the EU’s six environmental objectives;b.

They cause no significant harm to any of the other environmental objectives;c.

They comply with the minimum safeguards; andd.

They comply with the set of technical screening criteria set down in the delegated acts supplementing the Taxonomy Regulation (Commission
Delegated

The following disclosures on eligible and aligned activities includes activities that contribute substantially to the climate change mitigation and climate change adaptation
objectives, in keeping with the technical screening criteria set down in the above-mentioned Delegated Regulations.
We want to become a key player in the energy transition, by diversifying our products and services and developing new and increasingly sustainable business lines.
Although we are not subject to the Taxonomy Regulation, we believe the system provides us with an additional framework for assessing our strategic transformation. To
that end, we have devised an internal methodology to allow us to identify and monitor our sustainable activities in line with the EU Taxonomy recommendations.
Next we provide information about the work methodology used, the accounting policies applied and the turnover, CapEx and OpEx (eligible and aligned) disclosuresrequired under Annex II of Commission Delegated Regulation 2021/2178.

160

CHAPTER 5 Appendix

3.1.1. Cepsa’s taxonomy-eligible and aligned activities
As prescribed in Annexes I and II of Commission Delegated Regulation (EU) 2021/2139 of 4 June 2021 and Commission Delegated Regulation (EU) 2022/1214 of 9 March
2022, we have identified the economic activities listed in those acts that match the activities carried on by the company. The next table itemises our Taxonomy-eligible
activities:
Taxonomy-eligible activities
Taxonomy activity code

Description of the activity

3.10. Manufacture of hydrogen

Production of hydrogen in industrial facilities

3.14. Manufacture of organic basic chemicals

Production of aromatic chemical molecules and chemical molecules for biodegradable detergents and forindustrial plastics

4.13. Manufacture of biogas and biofuels for use in transport and of bioliquids

Production of biofuels and co-processing activities at the Energy Parks

4.1. Electricity generation using solar photovoltaic technology

Development of solar power plants (photovoltaic)

4.3. Electricity generation from wind power

Operation of wind farms

4.29. Electricity generation from fossil gaseous fuels

Production of electricity at a conventional natural gas combined cycle plant

4.30. High-efficiency co-generation of heat/cool and power from fossil gaseous fuels

Co-generation of electricity and heat at a conventional thermal power plant using high-efficiency naturalgas (combined heat and power)

6.15. Infrastructure enabling low-carbon road transport and public transport

Installation of EV charging infrastructure across the service station network

7.6. Installation, maintenance and repair of renewable energy technologies

Installation and maintenance of solar panels across the service station network

9.1. Close to market research, development and innovation

Research centre activities

It is worth mentioning that the business units that contribute the most in terms of eligibility and alignment are Energy Parks, Chemicals and Commercial & Clean Energies
business units. This is mainly due to the fact that a large part of the activities carried out by these divisions are related to activities defined by the Taxonomy (production ofhydrogen, biofuels and base chemicals in the case of Energy Parks, base chemicals in Chemicals, and energy generation from renewable energy and from natural gas andbiofuels in Commercial & Clean Energies).
The results obtained in terms of CapEx reflect the progress made to increment our portfolio of sustainable activities. These investments will make the aligned revenue
figures to be increasingly higher in the coming years.

161

CHAPTER 5 Appendix

3.1.2. Activity selection, data gathering and validation process
To provide disclosures on our EU Taxonomy eligible and aligned economic activities, we segmented each of our activities to determine which are eligible. Based on theuniverse of eligible activities so identified, we analysed them for alignment (substantial contribution limits and requirements and DNSH criterion (‘Does Not Significantly
Harm’)), considering the technical characteristics of the facilities where our activities are located.
Specifically in relation to the DNSH screening with respect to climate change adaptation, we analysed physical risks based on IPCC scenarios RCP 1.9, RCP 2.6 and RCP
4.5, also considering adaptation measures to tackle the physical risks that are most material for our operations.
Elsewhere, we checked for compliance with the Minimum Safeguards (minimum human rights, tax payment, fair trade and anti-corruption requirements) based on theguidelines established by the EU Platform on Sustainable Finance’s Final Report on Minimum Safeguards. Although that report is not binding, it does provide a benchmark
for verifying compliance with the minimum safeguards.
Having identified all our eligible and aligned economic activities, we allocated the turnover, CapEx and OpEx corresponding to each based on information obtained from theCompany’s accounting systems. This process has enabled to obtain the numerators of the eligibility and alignment KPIs. In addition, in the case of the activities relatedwith the production of eligible chemical substances, we allocated the corresponding CapEx and OpEx to each chemical compound on the basis of the volumes produced ineach production line. In all instances, the process was sufficiently granular to ensure the absence of any double counting.

162

CHAPTER 5 Appendix

3.1.3. Accounting policy
The percentage of turnover accounted for by Taxonomy-eligible and aligned activities was calculated by dividing consolidated revenue from the sale of products andservices associated with those activities (numerator) by the Group’s total consolidated revenue (denominator) for 2022.
The turnover KPI used in the denominator is based on our consolidated revenue under IAS 1.82(a). Our consolidated revenue can be cross-checked against ourconsolidated financial statements. For more information about our earnings performance, refer to “Consolidated earnings analysis” in our 2022 Integrated Report.
The CapEx KPI is defined as Taxonomy-eligible and/or aligned CapEx (numerator) divided by total CapEx total (denominator). Total CapEx is calculated as additions toproperty, plant and equipment and intangible assets during the year, before depreciation and amortisation charges, including those derived from revaluations andimpairment charges, and excluding fair value changes. The numerator consists of the CapEx related with assets or processes associated with the Taxonomy-aligned
activities. Note that total CapEx can be cross-checked against the totals under the column “Additions/(Charges) for the year” disclosed in note 8, “Intangible assets” andnote 10 “Property, plant and equipment” of our annual financial statements.
The OpEx KPI is defined as Taxonomy-eligible OpEx (numerator) divided by total OpEx total (denominator). Total OpEx consists of direct costs that are not capitalised;they related to research and development costs, office refurbishment expenses, short-term leases, maintenance and repair costs and any other direct expenditure relatedwith the daily servicing of our assets. Our total OpEx cannot be cross-checked against our consolidated financial statements.

163

CHAPTER 5 Appendix

3.1.4. Taxonomy KPI disclosure tables as per Annex II of Commission DelegatedRegulation (EU) 2021/2178 of 6 July 2021
Proportion of turnover from products or services associated with Taxonomy-aligned economic activities – disclosure covering 2022
DNSH criteria(‘Does Not Significantly Harm’)

Substantial contribution criteria

Absolute turnover (3)Proportion of turnover (4)Climate change mitigation (5)Climate change adaptation (6)Water and marine resources (7)Circular economy (8)Pollution (9)Biodiversity and ecosystems (10)Climate change mitigation (11)Climate change adaptation (12)Water and marine resources (13)Circular economy (14)Pollution (15)Biodiversity and ecosystems (16)Minimum safeguards (17)Taxonomy-aligned proportion of
turnover 2022 (18)Taxonomy-aligned proportion of
turnover 2021 (19)Category (E: enabling activity) (20)Category (T: transitional activity) (21)Code (2)Economic activities (1)

€M

%

%

%

%

%

%

%

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

%

%

E

T

A. TAXONOMY ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Manufacture of hydrogen

3.10.

0

0.00% 100%

0%

n.a.

n.a.

n.a.

n.a.

-

Y

Y

Y

Y

Y

Y 0.00%

n.a.

-

-

Manufacture of basic chemical products

3.14.

0

0.00% 100%

0%

n.a.

n.a.

n.a.

n.a.

-

Y

Y

Y

Y

Y

Y 0.00%

n.a.

-

T

Electricity generation using solar
photovoltaic technology

4.1.

0

0.00% 100%

0%

n.a.

n.a.

n.a.

n.a.

-

Y

Y

Y

Y

Y

Y 0.00%

n.a.

-

-

Electricity generation from wind power

4.3.

5,852

0.02% 100%

0%

n.a.

n.a.

n.a.

n.a.

-

Y

Y

Y

Y

Y

Y

0.02%

n.a.

-

-

Manufacture of biogas and biofuels for use intransport and of bioliquids

4.13

0

0.00% 100%

0%

n.a.

n.a.

n.a.

n.a.

-

Y

Y

Y

Y

Y

Y 0.00%

n.a.

-

-

Infrastructure enabling low-carbon roadtransport and public transport

6.15.

22

0.00% 100%

0%

n.a.

n.a.

n.a.

n.a.

-

Y

Y

Y

Y

Y

Y 0.00%

n.a.

E

-

Installation, maintenance, and repair ofrenewable energy technologies

7.6.

0

0.00% 100%

0%

n.a.

n.a.

n.a.

n.a.

-

Y

Y

Y

Y

Y

Y 0.00%

n.a.

E

-

Close to market research, development andinnovation

9.1.

0

0.00% 100%

0%

n.a.

n.a.

n.a.

n.a.

-

Y

Y

Y

Y

Y

Y 0.00%

n.a.

E

-

-

5,875

0.02% 100%

0%

n.a.

n.a.

n.a.

n.a.

-

Y

Y

Y

Y

Y

Y

n.a.

-

-

Total A.1.

0.02%

164

CHAPTER 5 Appendix

DNSH criteria(‘Does Not Significantly Harm’)

Substantial contribution criterian.a.

Category (T: transitional activity) (21)Taxonomy-aligned proportion of
turnover 2021 (19)0.02%

Category (E: enabling activity) (20)Taxonomy-aligned proportion of
turnover 2022 (18)Minimum safeguards (17)Biodiversity and ecosystems (16)

Pollution (15)

Circular economy (14)Water and marine resources (13)Climate change adaptation (12)Climate change mitigation (11)Biodiversity and ecosystems (10)Pollution (9)Circular economy (8)Water and marine resources (7)Climate change adaptation (6)Climate change mitigation (5)Proportion of turnover (4)Absolute turnover (3)Code (2)Economic activities (1)A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
Manufacture of hydrogen

3.10.

0

0.00%

Manufacture of basic chemical products

3.14.

3,215,411

9.61%

Manufacture of biogas and biofuels for use intransport and of bioliquids

4.13.

9,580

0.03%

Generation of electricity from gaseous fossil
fuels

4.29.

0

0.00%

High efficiency cogeneration of heat/cold andelectricity from gaseous fossil fuels

4.30.

692,192

2.07%

Total A.2.

3,917,182

11.71%

3,923,057

11.73%

Turnover of Taxonomy-noneligible activities (B)29,523,391

88.27%

Total (A + B)

33,446,448

100%

Total (A.1 + A.2)-

B. TAXONOMY NON-ELEGIBLE ACTIVITIES

165

CHAPTER 5 Appendix

Proportion of CapEx from products or services associated with Taxonomy-aligned economic activities – disclosure covering 2022
DNSH criteria(‘Does Not Significantly Harm’)

Substantial contribution criteria

Proportion of CapEx (4)Climate change mitigation (5)Climate change adaptation (6)Water and marine resources (7)Circular economy (8)Pollution (9)Biodiversity and ecosystems (10)Climate change mitigation (11)Climate change adaptation (12)Water and marine resources (13)Circular economy (14)Pollution (15)Biodiversity and ecosystems (16)Minimum safeguards (17)Taxonomy-aligned proportion of
turnover 2022 (18)Taxonomy-aligned proportion of
turnover 2021 (19)

€M

%

%

%

%

%

%

%

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

%

%

Category (T: transitional activity)(21)
Category (E: enabling activity)(20)

Absolute CapEx (3)Code (2)Economic activities (1)E

T

A. TAXONOMY ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Manufacture of hydrogen

3.10.

0

0.00% 100%

0%

n.a.

n.a.

n.a.

n.a.

-

Y

Y

Y

Y

Y

Y 0.00%

n.a.

-

-

Manufacture of basic chemical products

3.14.

0

0.00% 100%

0%

n.a.

n.a.

n.a.

n.a.

-

Y

Y

Y

Y

Y

Y 0.00%

n.a.

-

T

Electricity generation using solar
photovoltaic technology

4.1.

19,777

3.08% 100%

0%

n.a.

n.a.

n.a.

n.a.

-

Y

Y

Y

Y

Y

Y

3.08%

n.a.

-

-

Electricity generation from wind power

4.3.

186

0.03% 100%

0%

n.a.

n.a.

n.a.

n.a.

-

Y

Y

Y

Y

Y

Y 0.03%

n.a.

-

-

Manufacture of biogas and biofuels for use intransport and of bioliquids

4.13

0

0.00% 100%

0%

n.a.

n.a.

n.a.

n.a.

-

Y

Y

Y

Y

Y

Y 0.00%

n.a.

-

-

Infrastructure enabling low-carbon roadtransport and public transport

6.15.

12,669

1.97% 100%

0%

n.a.

n.a.

n.a.

n.a.

-

Y

Y

Y

Y

Y

Y

1.97%

n.a.

E

-

Installation, maintenance, and repair ofrenewable energy technologies

7.6.

1,640

0.26% 100%

0%

n.a.

n.a.

n.a.

n.a.

-

Y

Y

Y

Y

Y

Y

0.26%

n.a.

E

-

Close to market research, development andinnovation

9.1.

1,604

0.25% 100%

0%

n.a.

n.a.

n.a.

n.a.

-

Y

Y

Y

Y

Y

Y

0.25%

n.a.

E

-

-

35,877

5.59% 100%

0%

n.a.

n.a.

n.a.

n.a.

-

Y

Y

Y

Y

Y

Y

5.59%

n.a.

-

-

Total A.1.

166

CHAPTER 5 Appendix

DNSH criteria(‘Does Not Significantly Harm’)

Substantial contribution criteria

Taxonomy-aligned proportion of
turnover 2021 (19)

5.59%

n.a.

Category (T: transitional activity)(21)
Category (E: enabling activity)(20)

Taxonomy-aligned proportion of
turnover 2022 (18)Minimum safeguards (17)Biodiversity and ecosystems (16)

Pollution (15)

Circular economy (14)Water and marine resources (13)Climate change adaptation (12)Climate change mitigation (11)Biodiversity and ecosystems (10)Pollution (9)Circular economy (8)Water and marine resources (7)Climate change adaptation (6)Climate change mitigation (5)Proportion of CapEx (4)Absolute CapEx (3)Code (2)Economic activities (1)A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
Manufacture of hydrogen

3.10.

8,439

1.31%

Manufacture of basic chemical products

3.14.

67,33310.49%

Manufacture of biogas and biofuels for use intransport and of bioliquids

4.13.

6,115

0.95%

Generation of electricity from gaseous fossil
fuels

4.29.

0

0.00%

High efficiency cogeneration of heat/cold andelectricity from gaseous fossil fuels

4.30.

17,6072.74%-

99,49515.50%

135,37121.09%

Turnover of Taxonomy-noneligible activities (B)506,494

78.91%

Total (A + B)

641,865

100%

Total A.2.
Total (A.1 + A.2)
B. TAXONOMY NON-ELEGIBLE ACTIVITIES167

CHAPTER 5 Appendix

Proportion of OpEx from products or services associated with Taxonomy-aligned economic activities – disclosure covering 2022
DNSH criteria(‘Does Not Significantly Harm’)

Substantial contribution criteria

Proportion of OpEx (4)Climate change mitigation (5)Climate change adaptation (6)Water and marine resources(7)

Circular economy (8)Pollution (9)Biodiversity and ecosystems(10)

Climate change mitigation (11)Climate change adaptation(12)

Water and marine resources(13)

Circular economy (14)Pollution (15)Biodiversity and ecosystems(16)

Minimum safeguards (17)Taxonomy-aligned proportionof turnover 2022 (18)Taxonomy-aligned proportionof turnover 2021 (19)

€M

%

%

%

%

%

%

%

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

%

%

Category (T: transitional
activity) (21)Category (E: enabling activity)(20)

Absolute OpEx (3)Code (2)Economic activities (1)E

T

A. TAXONOMY ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Manufacture of hydrogen

3.10.

0

0.00% 100%

0%

n.a.

n.a.

n.a.

n.a.

-

Y

Y

Y

Y

Y

Y 0.00%

n.a.

-

-

Manufacture of basic chemical products

3.14.

0

0.00% 100%

0%

n.a.

n.a.

n.a.

n.a.

-

Y

Y

Y

Y

Y

Y 0.00%

n.a.

-

T

Electricity generation using solar
photovoltaic technology

4.1.

0

0.00% 100%

0%

n.a.

n.a.

n.a.

n.a.

-

Y

Y

Y

Y

Y

Y 0.00%

n.a.

-

-

Electricity generation from wind power

4.3.

457

0.17% 100%

0%

n.a.

n.a.

n.a.

n.a.

-

Y

Y

Y

Y

Y

Y

0.17%

n.a.

-

-

Manufacture of biogas and biofuels for use intransport and of bioliquids

4.13

0

0.00% 100%

0%

n.a.

n.a.

n.a.

n.a.

-

Y

Y

Y

Y

Y

Y 0.00%

n.a.

-

-

Infrastructure enabling low-carbon roadtransport and public transport

6.15.

0

0.00% 100%

0%

n.a.

n.a.

n.a.

n.a.

-

Y

Y

Y

Y

Y

Y 0.00%

n.a.

E

-

Installation, maintenance, and repair ofrenewable energy technologies

7.6.

11

0.00% 100%

0%

n.a.

n.a.

n.a.

n.a.

-

Y

Y

Y

Y

Y

Y 0.00%

n.a.

E

-

Close to market research, development andinnovation

9.1.

0

0.00% 100%

0%

n.a.

n.a.

n.a.

n.a.

-

Y

Y

Y

Y

Y

Y 0.00%

n.a.

E

-

-

468

0.17% 100%

0%

n.a.

n.a.

n.a.

n.a.

-

Y

Y

Y

Y

Y

Y

n.a.

-

-

Total A.1.

0.17%

168

CHAPTER 5 Appendix

DNSH criteria(‘Does Not Significantly Harm’)

Substantial contribution criteria

Taxonomy-aligned proportionof turnover 2021 (19)

0.17%

n.a.

Category (T: transitional
activity) (21)Category (E: enabling activity)(20)

Taxonomy-aligned proportionof turnover 2022 (18)Minimum safeguards (17)Biodiversity and ecosystems(16)

Pollution (15)

Circular economy (14)Water and marine resources(13)

Climate change adaptation(12)

Climate change mitigation (11)Biodiversity and ecosystems(10)

Pollution (9)Circular economy (8)Water and marine resources(7)

Climate change adaptation (6)Climate change mitigation (5)Proportion of OpEx (4)Absolute OpEx (3)Code (2)Economic activities (1)A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
Manufacture of hydrogen

3.10.

646

0.24%

Manufacture of basic chemical products

3.14.

28,417

10.62%

Manufacture of biogas and biofuels for use intransport and of bioliquids

4.13.

1,560

0.58%

Generation of electricity from gaseous fossil
fuels

4.29.

0

0.00%

High efficiency cogeneration of heat/cold andelectricity from gaseous fossil fuels

4.30.

7,057

2.64%

-

37,68114.09%

38,14914.26%

Turnover of Taxonomy-noneligible activities (B)229,371

85.74%

Total (A + B)

267,520100%

Total A.2.
Total (A.1 + A.2)
B. TAXONOMY NON-ELEGIBLE ACTIVITIES

Note: with regard to these tables, we also note that Cepsa carries out activities related to the operation of electricity generation facilities that use natural gas andcogeneration of electricity and heat facilities that use natural gas (activities 4.29. and 4.30. according to Annex I of Delegated Regulation 2022/1214). Consequently, andaccording to the provisions of Delegated Regulation 2022/1214, it is reported that this type of activities are, in their entirety, eligible, not aligned activities, and that thistype of activities suppose, from an income, CapEx and OpEx perspective, 17.7%, 17.7% and 18.7% (respectively) of total revenues, CapEx and OpEx of total eligible, notaligned activities.

169

CHAPTER 5 Appendix

3.2 CORPORATE GOVERNANCE[GRI 2-12] Role of the highest governance body in overseeing the management of impacts
The Board of Directors’ responsibilities include approving the group’s strategic objectives and general policies and ensuring that they are complied with and implemented.
The Board of Directors approved a set of sustainability-related policies between 2021 and 2022 that were included in the ESG action plan.
[Cepsa’s Corporate Policies]
Cepsa’s various Board committees are responsible for overseeing the company’s economic, social and environmental performance, the risks that could arise from its
operations and compliance with applicable internal and external standards and regulations. To assess the company’s performance, the Board of Directors and Board
committees use information provided by the organisation itself and that received from regular meetings with corporate department and business managers or heads.
Our Board of Directors discharges its general oversight duty both directly and through the ACER Committee, which has authority to evaluate all matters related tofinancial and non-financial risks, including operational, technological, legal, social, environmental, political and reputational risks, and duly report on them to the Board.

[GRI 2-16] Communication of critical concerns
The business units report directly to the Management Committee which, in turn, reports to the Board of Directors to ensure that the business plan, budget, and company
strategy established by the Board are implemented and executed appropriately, and that they are reviewed and monitored regularly.
At each Board meeting, the chairs of the various committees report on all matters reviewed and approved at their meetings and all concerns that should be addressed by
the Board.

[GRI 2-17] Collective knowledge of highest governance body
The current members of our Board of Directors are renowned technical, financial, economic and environmental experts with extensive track records, knowledge andexperience in addressing economic, environmental and social issues. Nevertheless, they receive any support and training required on matters related to sustainability,
renewable energies or other relevant topics.
For example, our ACER Committee provides training on matters pertaining to emerging risks (e.g., cybersecurity) or new auditing standards. Our Board, through deep-divemeetings with the company's various business area managers, addresses matters related to new energies, such as e-mobility, biofuels and green hydrogen.

[GRI 2-18] Evaluation of the performance of the highest governance body
Our Board has a self-evaluation process in place that it carries out at the end of each year involving a detailed questionnaire. Based on the results, it adopts action plans
required to address any weaknesses uncovered.
The Board has decided that for now it does not require the assistance of an independent external consultant to advise it on the evaluation of its performance. However, it
could decide to engage one in future.

170

CHAPTER 5 Appendix

3.3 STAKEHOLDER MANAGEMENT[GRI 2-28] Membership of associations
Contributions to initiatives and associations1,2 (2022-2018) (€)
2022

2021

2020

2019

2018

Expenditure on contributions toinitiatives and associations (3)2,894,448

2,475,133

2,454,200

2,177,784

1,774,363

Expenditure on these initiatives
and associations earmarked for
defence of the industry

868,334

742,539736,260

653,335

532,309

1. Expenditure is broken down by total expenditure earmarked for associations and expenditure for defence of the industry. Accordingly, prior period figures have been restated. We also reviewed the approach, consideringthat the company spends 30% of the total expenditure earmarked for associations and initiatives on defence of the industry.
2. Cepsa neither finances nor lends any form of support, directly or indirectly, to unions, public officials, politicians, political parties or their representatives and/or candidates, advisors or any other person carrying out
public duties or confidantes thereof.
3. The increase from 2021 was due to higher membership fees, which was already budgeted, and new additions in line with the new Positive Motion strategy.

Main contributions and expenses (2022-2021) (€)
Main contributions in 2022 and 2021 by industry
Industry

Description

Energy industry (1)Our share in AOP and Fuels Europe, the Spanish
Hydrogen Association and Eurogas of expenditure
earmarked for actions in defence of the industry.

2022

2021

232,888

212,332

Chemical industry

Amount of the percentage of our participation in Cefic
and Feique that was allocated to defense actions of
the industry

111,461

113,366

1. In 2022, Cepsa joined the Spanish Hydrogen Association and Eurogas energy industry associations. Accordingly, data for 2021 do not include these associations.

Main contributions in 2022 and 2021 by organization (€)
Organization

2022

2021

Fuels Europe

127,763

128,332

CEFIC

83,081

83,786

AOP

102,000

84,000171

CHAPTER 5 Appendix

3.4 ADVANCING TOWARDS A NET ZERO WORLD
3.4.1 Energy consumption[GRI 302-1] Energy consumption within the organization
Energy consumption within the organization by fuel type in 2022-2018 (GJ)1,2
Fuels

2022

2021

2020

2019

2018

Renewable electricity (3)4,579,718

4,051,166

1,176,026

1,200,377

492,683

Non-renewable electricity

1,452,931

1,472,328

5,542,132

5,604,581

6,540,729

Gas oil/diesel

606,809537,261

1,227,913

2,178,807

2,363,711

Fuel oil

2,922,884

1,126,789

984,909

1,402,487

3,123,399

Natural gas

41,623,411

49,023,641

50,588,681

58,148,459

47,180,386

Residual gas

2,327,901

2,371,468

2,366,497

3,076,004

2,636,123

Crude oil

46,112

79,0940

10,732

20,648

Fuel gas

28,113,830

23,423,095

21,488,231

22,569,168

25,017,690

Steam

2,157,551

2,180,243

2,296,329

2,495,536

2,312,630

Total

83,831,148

84,265,084

85,670,719

96,686,151

89,687,999

1. The Mobility & New Commerce and Trading businesses are immaterial for this topic and therefore are not included.
2. Energy consumption in the Commercial & Clean Energies business for the renewable, gas and electricity facilities (cogeneration and combined cycle) is total primary energy. Therefore, final energy generated by themand consumed in the rest of the facilities reported (Chemicals and Energy Parks) is not reported in this indicator to avoid duplication in the calculation. In any case, reporting of energy consumption and energy intensity(GRI 302-3) is included in the reporting on Energy Parks and Chemicals.
3. The energy sources of the Chemicals’ business facilities in Spain, the Energy Parks and the Tenerife storage factory are renewable based on data of the energy supplier.

Energy sold by fuel type (2022-2018) (GJ)
2022

2021

2020

2019

2018

Electricity (1)9,753,566

8,368,296

10,018,431

7,789,227

8,247,537

Steam (2)1,059,802

1,422,575

1,689,982

1,724,219

1,734,578

Total

10,813,369

9,790,871

11,708,414

9,513,446

9,982,115

1. Includes electricity sold to a third party, so it includes electricity sold to the grid by our CHP/CCGT plants not needed for self-consumption.
2. Includes steam sold to a third party, so it includes steam sold to a third party by one of the CHP plants of the Gas & Power business.

172

CHAPTER 5 Appendix[GRI 302-2] Energy consumption outside the organization
Energy consumption outside the organization by category1 (2022-2018) (GJ)
Categories (GHG protocol) (2)

2022

2021

2020

2019

2018

Purchased goods and services

916,549,137

881,182,432

840,350,989

974,814,584

1,001,650,448

Fuel- and energy-related activities

11,247,289

12,605,341

9,247,680

10,464,669

9,807,677

Upstream transportation anddistribution

15,728,550

16,170,663

15,512,116

19,631,956

19,548,426

Downstream transportation anddistribution

5,734,657

5,555,217

5,471,002

6,629,947

7,173,399

Use of sold products
Total

711,008,867

658,566,498

652,632,957

786,177,937

742,498,921

1,660,268,500

1,574,080,151

1,523,214,744

1,797,719,093

1,780,678,871

1. The entire history of categories was updated relative to the 2021 Integrated Report to aid comparability of the data and analyse trends. This update was carried out using the latest approach approved under ISO 14064
and the criteria applied in our Carbon Intensity Index.
2. The five most important Scope 3 categories are represented, i.e. those that account for at least 95% of ISO 14064-certified total Scope 3 emissions.

[GRI 302-3] Energy intensity
Energy intensity1 (2022-2018) (TJ/thousand tonnes of product)
2022

2021

Energy intensity

Energyconsumption(TJ) (2) (3)

1,840

1.14

Chemicals (5)15,300

Energy Parks (6)46,570Business
Exploration &Production (4)Energyconsumption(TJ) (2) (3)2020

Energy intensity

Energyconsumption(TJ) (2) (3)

2,034

1.15

4.22

16,522

2.24

47,028

2019

Energy intensity

Energyconsumption(TJ) (2) (3)

2,727

1.26

4.02

16,3142.37

45,575

2018

Energy intensity

Energyconsumption(TJ) (2) (3)Energy intensity

4,124

1.42

3,794

1.26

4.04

16,645

4.13

16,5304.03

2.40

50,1022.28

51,9972.31

1. Primary energy consumption in the Commercial & Clean Energies business reported in the energy consumption indicator (GRI 302-1) is not reported in this indicator since part of the final energy generated in thebusiness is consumed by Energy Parks and Chemicals and, therefore, shown in these businesses’ energy intensity.
2. Types of energy included: fuel, electricity, heating, cooling and steam.
3. Type of energy consumption: within and outside of the organization.
4. Denominator: thousands of tonnes of crude oil and gas.
5. Denominator: thousands of tonnes processed.
6. Denominator: thousands of tonnes of processed crude oil.

173

CHAPTER 5 Appendix[SASB RT-CH-130a.1] Total energy consumed
Energy consumed in the Chemicals business (2022-2018) (GJ)
Energy

2022

2021

2020

2019

2018

Total energy consumed

15,30016,522

16,314

16,645

16,530

Energy consumed supplied from grid electricity

730

751

761

742

1,436

Percentage grid electricity

5%

5%

5%

4%

9%

Energy consumed that is renewable energy

980

1,148

1,149

1,153

454

Percentage renewable

6%

7%

7%

7%

3%

Total amount of self-generated energy

112

0

0

74

81

174

CHAPTER 5 Appendix

3.4.2 GHG emissions[GRI 305-1] Direct (Scope 1) GHG emissions / [GRI 305-2] Energy indirect (Scope 2) GHG emissions
Scope 1 and 2 GHG emissions by business1,2,3,4 (2022-2018) (thousand tCO2eq)
2022
Business

Sub-business

Exploration &Production
Chemicals

Energy (5)

2021

2020

2019

2018

Scope 1 (8)Scope 2

Scope 1 (8)Scope 2

Scope 1 (8)Scope 2

Scope 1 (8)Scope 2

Scope 1 (8)Scope 2

115

53

131

47

238

47

424

44

413

48

699

158

781

288

752

291

734

334

722

380

Energy Parks

2,908

0

2,719

0

2,575

227

2,857

336

3,025

355

Commercial &Clean Energies
(6)

1,558

0

1,659

0

1,649

0

2,047

0

1,545

0

5,280

211

5,290

335

5,214

565

6,062

714

5,705

783

Total (Scopes)
Total (Scope 1 + Scope 2)

5,491

5,625

5,779

6,776

6,488

1. Because of the reporting date, CO2eq data are not the same as the audited and reported data under the carbon schemes to which the Company is subject or our voluntary reports under ISO 14064.
2. Gases included in the calculation: CO2, CH4 and N2O.
3. Measurement methodology: calculated using regulatory methodologies and/or the voluntary ISO 14064 international standard.
4. Scope 1 emissions include fugitive emissions from natural gas transport for alignment with our scope in ISO 14064, with recalculation of historical data.
5. The Mobility & New Commerce and Trading businesses are immaterial for this topic and therefore are not included.
6. The asphalts facilities have been included in the ISO 14064 since 2021. Therefore, in this report, they were included, along with historical data, in the Commercial & Clean Energies business. They do not contribute any
material emissions or energy consumption but are reported in compliance with that ISO.

Methane emissions (2022-2018) (tonnes of CH4)
Direct CH4 emissions

2022

2021

2020

2019

2018

2,048

2,183

2,848

4,415

5,191

1. CH4 reported includes venting emissions and emissions from flaring, combustion and natural gas transport (fugitive). Calculated using the audited methodology under ISO 14064. Exploration & Production emissions
were reduced considerably in 2020 as the assets in Thailand were idle.

175

CHAPTER 5 Appendix[GRI 305-5] Reduction of GHG emissions
Main GHG emission reduction initiatives in 2022 (tCO2eq) 1
Initiative

GHG reduction (tCO2eq)

Type of energy

Scope199,574

Electricity

2

Furnace efficiency enhancements

2,300

Fuel

1

Optimisation in use of laminated steam

4,500

Fuel

1

GHG reduction (tCO2eq)

Type of energy

Scope148,482

Fuel

1

Operational improvements in cooling systems

4,560

Electricity

2

Changes in frequency inverters in cooling systems

6,775

Fuel

1

Changes in frequency inverters in cooling systems

1,866Electricity

2

Technology upgrades in paraffin unit

3,779

Fuel

1

Recovery of waste energy

18,886

Steam

2

Online analysers

79,017

Fuel

1

308

Steam

2

Heat exchanger upgrades

50,000

Fuel

1

Total

313,673

Acquisition of Guarantees of Origin for the consumption of renewable energy

Total

206,374

1. This table presents the main carbon reduction initiatives. Other initiatives to optimise operations were carried out that also reduce carbon emissions.

Main GHG emission reduction initiatives in 2021 (tCO2)
Initiative
New technology in refinery’s naphtha
reforming unit

Upgrades in phenol unit

176

CHAPTER 5 Appendix[GRI 305-3] Other indirect (Scope 3) GHG emissions
Scope 3 GHG emissions by category1,2 (2022-2018) (thousand tCO2eq)
2022

2021

2020

2019

2018

Scope 3 (3)Scope 3 (3)Scope 3 (3)Scope 3 (3)Scope 3 (3)Purchased goods and services

9,751

9,891

9,477

6,835

6,710

Fuel- and energy-related activities

630

708

518

588

551

Upstream transportation and distribution

881

908

868

1,103

1,098

Downstream transportation and distribution

321

312

306

373

403

Use of sold products

50,743

46,29445,87655,802

52,679Total

62,326

58,11357,04564,701

61,441Category

1. The entire history of categories was updated relative to the 2021 Integrated Report to aid comparability of the data and analyse trends. This update was carried out using the latest approach approved under ISO 14064
and the criteria applied in our Carbon Intensity Index.
2. Because of the reporting date, CO2eq data are not the same as the audited and reported data under the carbon schemes to which the Company is subject or our voluntary reports under ISO 14064.
3. Gases included in the calculation: CO2, CH4 and N2O.

[GRI 305-4] GHG emissions intensity
GHG emissions intensity1 (2022-2018) (thousand tCO2eq/thousand tonnes)
2022
Business

2021

2020

2019

2018

GHG emissions

Intensity

GHG emissions

Intensity

GHG emissions

Intensity

GHG emissions

Intensity

GHG emissions

Intensity

Exploration &Production (2)

168

0.10

178

0.10

285

0.13

469

0.16

461

0.15

Chemicals (3)

992

0.27

1,223

0.30

1,204

0.30

1,233

0.31

1,269

0.31

Energy Parks (4)

3,347

0.16

3,359

0.17

3,368

0.18

3,813

0.18

3,964

0.18

1. Emission intensity reporting is based on the same rationale as the energy intensity indicator (GRI 302-3). Primary energy consumption in the Commercial & Clean Energies business reported in the energy consumption
indicator (GRI 302-1) is not reported in this indicator since of the final energy generated and, therefore, the associated emissions generated in the business is consumed by Energy Parks and Chemicals and, therefore,shown in these businesses’ emission intensity.
2. Denominator: thousands of tonnes of crude oil and gas.
3. Denominator: thousands of tonnes processed.
4. Denominator: thousands of tonnes of processed crude oil.

177

CHAPTER 5 Appendix[SASB EM-EP-110a.1 / SASB EM-RM-110a.1 / SASB RT-CH-110a.1] Greenhouse gas emissions
Scope 1 emissions, percentage covered under emissions-limiting regulations 2022-2018) (thousand tCO2eq)
2022

2021

2020

2019

2018

Total Scope 1 GHG emissions(thousand tCO2eq)

5,280

5,290

5,214

6,062

5,705

% covered under emissionslimiting regulation

95 %

94 %

92 %

90 %

90 %

[SASB EM-EP-110a.2] Amount of GHG emissions by type
GHG emissions by business (2022-2018) (metric tonnes of CO2eq)
2022

2021

2020

2019

2018

Hydrocarbons flared

33,04830,00572,763

148,715140,719

Other combustion

70,10485,857

148,821236,146

247,105

Process emissions

0

0

0

0

0

Other vented emissions

0

0

3,150

25,436

21,834

12,192

14,752

13,682

14,016

2,654

Fugitive emissions from operations[SASB EM-EP-420a.2] Estimated carbon dioxide emissions embedded in proved hydrocarbon reserves
Estimated CO2 emissions embedded in proved hydrocarbon reserves (2022-2018) (tCO2)
Estimated CO2 emissions inproved reserves

2022

2021

2020

2019

2018

31,154,386

30,903,915

35,432,287

36,957,709

40,274,992

178

CHAPTER 5 Appendix

3.4.3 Renewable energy
Renewable production in 2022 (GWh) (MW)
Renewable energy source

Gross generation (GWh)

Installed capacity (MW)Planned capacity by 2030 (MW)

Wind

53

30

1,000

Solar

0

0

6,000

CapEx earmarked to climate change-related investments
Amount invested in renewable energy (2022-2019) (€ million)
2022

2021

2020

2019

Investment (€million)

Proportion of CapEx

Investment (€million)

Proportion of CapEx

Investment (€million)

Proportion of CapEx

Investment (€million)

Proportion of CapEx

Energy fromrenewable sources (bytype of source)

39.5

4%

22.1

5%

20.8

3%

15.0

2%

First-generation
biofuels

1.5

—%

1.6

—%

0.2

—%

3.0

—%

Advanced biofuels

3.8

1%

—%

0.5

—%

0.0

1%

Wind

0.1

—%

0.2

—%

2.0

—%

12.0

—%

Solar

21.5

3%

20.3

5%

18.0

3%

0.0

—%

Other renewablesources

12.7

2%

0

—%

0

—%

0

—%

Type of investment

Volume of biofuels (2022-2021) (litres)
Biofuels (1)

2022

2021

Amount Location

Amount Location

Total volume of biofuels produced (litres)

59,843,318 Gibraltar-San Roque and Huelva

152,416,429 Gibraltar-San Roque and Huelva

Total volume of biofuels purchased(litres)308,764,196 Gibraltar-San Roque and Huelva

300,587,848 Gibraltar-San Roque and Huelva

1. Both biofuel volume produced and purchased adhere to sustainability criteria.

179

CHAPTER 5 Appendix[SASB EM-RM-410a.1] Percentage of Renewable Volume Obligation (RVO) met through: production of renewable fuels, purchase of“separated” renewable identification numbers (RIN)
Renewable volume (2022-2018) (%)
2022

2021

2020

2019

2018

Percentage of renewable volume obligation (RVO) met
through production of renewable fuels, including biofuels,
cellulosic biofuel, ethanol, advanced biofuels, and otherrenewable fuels

16 %

35 %

29 %

57 %

61 %

Percentage of RVO met through purchase of “separated”
renewable identification numbers (RIN).

84 %

69 %

88 %

68 %

70 %

180

CHAPTER 5 Appendix

3.5 MOVING FORWARD ON MINIMISING OUR ENVIRONMENTAL IMPACT
3.5.1 Environmental management
Sites with a certified Environmental Management System (EMS) or EMAS in 2022 and 2021 (%)
2022

2021

Group businesses with an EMS certified under ISO 14001 (%)

84 %

81 %

Other group businesses with an EMS verified by Internal Audit (%)

16 %

19 %

Businesses with a verified EMS (%)

100 %

100 %

Compliance with environmental laws and regulations, 2022 and 2021
2022

2021

2020

2019

Non-compliance with environmental laws
and/or regulations (1) (number)

3

2

0

0

Total monetary value of significant fines(€)

94,00225,001——

1. Significant fines are those of €10,000 or more.

181

CHAPTER 5 Appendix

3.5.2 Environmental investments
Resources for protecting the environment (2022-2019) (thousand €)
2022

2021

2020

2019

Environmental expenditure

101,799

55,14949,95775,641

Environmental investments

100,952

43,84415,0106,588

182

CHAPTER 5 Appendix

3.5.3 Responsible water consumption[GRI 303-1] Interactions with water as a shared resource
All water captured at our Energy Parks and chemical plants is freshwater from the municipal system or third parties. Tenerife is a separate case. There, slightly over halfof the water used is seawater which is demineralised and then used in the steam boilers. Effluents are treated at treatment plants then nearly 95% of the volume isdischarged into the sea at authorised points, complying with discharge metrics in all cases.
The use of freshwater at our Exploration & Production assets, which is primarily groundwater and water from municipal and third-party suppliers, is similar to domestic
and industrial use. However, the volume of freshwater is minimal relative to the total volume of water we capture. We account for water obtained naturally from crude
extraction (produced water), which is part of the fluid drawn from the source rock that flows from the reservoir to the surface, where it must then be separated. As asustainable solution, once this water is separated from the crude, it is treated to comply with the required specifications for re-injection, to the extent possible, back to theoil field. Our assets sometimes need additional water to maintain the pressure in the field. In these cases, a feasibility study is conducted and then, depending on
availability, water is captured from extremely deep non-potable water aquifers. This water is returned to the oil field, where is goes back into the cycle described
previously, i.e., it is practically a closed cycle.
We do not have any suppliers of water-intensive products or services, such as those from agriculture.
We have a procedure in place to assess our water use that outlines the approach for identifying and evaluating environmental aspects that applies to all our facilities. We
came up with a corporate-wide tool for assessing direct and indirect environmental aspects and the categories of spills and resources consumed. We perform both local
and global assessments regularly.

[GRI 303-2] Management of water discharge-related impacts
No body of water or habitat is significantly affected by the water discharges and/or runoff from Cepsa’s production plants or business units. We apply the best techniques
available to control and reduce our discharge-related impacts, ensuring compliance with the quality requirements outlined in our production facilities’ environmental
permits and respecting the receiving environment.
The Exploration & Production facilities take measures to apply the principle of zero effluents discharged to the environment. Produced water, which represents the bulk of
the water captured at our facilities, is re-injected into the reservoir from which it arose to the extent possible. Household wastewater is treated by third parties or, after
treatment up to the legal limits and in accordance with environmental licenses, either infiltrated or deposited in evaporation ponds.

[GRI 303-4] Water discharge
The facilities’ environmental permits set out the terms and conditions and quality criteria that our water/effluents must first meet before being released back into theenvironment. These minimum discharge quality requirements are set by the competent authorities taking into account the facility’s location and activity and applicablelegislation in all cases. For priority substances, in Europe these criteria are laid down in the Water Framework Directive, while outside Europe local regulations apply.

183

CHAPTER 5 Appendix[SASB RT-CH-140a.3] Description of water management risks and discussion of strategies and practices to mitigate those risks
We use the WWF's Water Risk Filter (WRF) tool at Cepsa to assess the water risks associated with our facilities. We update the information uploaded to the tool each year.
With the WRF, we assess basin risk where the facility is located and the operational risk associated with its water performance. This enables us to screen the risk at
corporate level and helps us to decide which facilities to prioritise.
The main risks and incidents assessed relate to water scarcity, water quality, flooding, regulatory changes and prince increases, as well as incidents of non-compliancewith water discharge parameters.

[GRI 303-3] Water withdrawal
Total water withdrawn by source in 2022 (thousand m3)1

Areas

Total
water
withdrawal

Water
withdrawal bytype (2)
Fresh
water

Other
water

Water withdrawal by source
Surface water
Fresh
water

Other
water

Groundwater
Total

Fresh
water

Other
water

Seawater
Total

Fresh
water

Other
water

Produced water

Third-party water

Total

Fresh
water

Other
water

Total

Fresh
water

Other
water

Total

Total (all areas)

33,143

16,707

16,436

9

207

216

751

1,514

2,264

0

0

0

0

14,716

14,716

15,9470

15,947

Total (areas with water stress)

16,185

14,385

1,800

0

207

207

725

1,514

2,238

0

0

0

0

80

80

13,660013,660

1. Data for Mobility & New Commerce and Trading are not material for this indicator and therefore are not reported.
2. Freshwater: total dissolved solids ≤ 1000 mg/l. Other water:> 1000 mg/l total dissolved solids.

Total water withdrawn by source in 2021 (thousand m3)1

Areas

Total water
withdrawal

Water
withdrawal bytype (2)Water withdrawal by source
Surface water

Groundwater

Fresh
water

Other
water

Fresh
water

Other
water

Total

Fresh
water

Other
water

Seawater
Total

Fresh
water

Other
water

Produced water

Third-party water

Total

Fresh
water

Other
water

Total

Fresh
water

Other
water

Total

Total (all areas)

33,405

17,886

15,518

10

318

328

865

1,055

1,920

0

0

0

0

14,14514,14517,0120

17,012

Total (areas with water stress)

16,974

15,538

1,436

0

318

318

836

1,055

1,892

0

0

0

0

63

63

14,7020

14,702

1. Data for Mobility & New Commerce and Trading are not material for this indicator and therefore are not reported.
2. Freshwater: total dissolved solids ≤ 1000 mg/l. Other water:> 1000 mg/l total dissolved solids.

184

CHAPTER 5 Appendix

Total water withdrawn by source in 2020 (thousand m3)1

Areas

Total water
withdrawal

Water
withdrawal bytype (2)Water withdrawal by source
Surface water

Groundwater

Fresh
water

Other
water

Fresh
water

Other
water

Total

Fresh
water

Other
water

Seawater
Total

Fresh
water

Other
water

Produced water
Total

Fresh
water

Other
water

Third-party water

Total

Fresh
water

Other
water

Total

Total (all areas)

37,76017,56920,191

14

352

367

712

1,269

1,981

0

2,090

2,090

0

16,480

16,48016,8430

16,843

Total (areas with water stress)

16,935

15,271

1,665

0

352

352

661

1,269

1,930

0

0

0

0

44

44

14,610014,610

Fresh
water

Other
water

1. Data for Mobility & New Commerce and Trading are not material for this indicator and therefore are not reported.
2. Freshwater: total dissolved solids ≤ 1000 mg/l. Other water:> 1000 mg/l total dissolved solids.

Total water withdrawn by source in 2019 (thousand m3)1

Areas

Total water
withdrawal

Water
withdrawal bytype (2)Water withdrawal by source
Surface water

Fresh
water

Other
water

Fresh
water

Other
water

Groundwater
Total

Fresh
water

Other
water

Seawater
Total

Fresh
water

Other
water

Produced water

Third-party water

Total

Fresh
water

Other
water

Total

Total

Total (all areas)

47,263

18,78428,479

20

674

694

656

1,197

1,853

0

2,889

2,889

0

23,71923,71918,1080

18,108

Total (areas with water stress)

18,46016,571

1,889

0

674

674

623

1,197

1,820

0

0

0

0

18

18

15,9480

15,948

1. Data for Mobility & New Commerce and Trading are not material for this indicator and therefore are not reported.
2. Freshwater: total dissolved solids ≤ 1000 mg/l. Other water:> 1000 mg/l total dissolved solids.

Total water withdrawn by source in 2018 (thousand m3)1

Areas

Total water
withdrawal

Water
withdrawal bytype (2)
Fresh
water

Water withdrawal by source
Surface water

Other
water

Fresh
water

Other
water

Groundwater
Total

Fresh
water

Other
water

Seawater

Produced water

Third-party water

Total

Fresh
water

Other
water

Total

Fresh
water

Other
water

Total

Fresh
water

Other
water

Total

Total (all areas)

48,341

18,244 30,097

45

1,047

1,092

587

949

1,536

0

4,315

4,315

0

23,78623,786

17,6120

17,612

Total (areas with water stress)

20,117

18,110

0

1,047

1,047

533

949

1,482

0

0

0

0

11

11

17,5770

17,5772,007

1. Data for Mobility & New Commerce and Trading are not material for this indicator and therefore are not reported.
2. Freshwater: total dissolved solids ≤ 1000 mg/l. Other water:> 1000 mg/l total dissolved solids.

185

CHAPTER 5 Appendix[GRI 303-4] Water discharge
Total water discharge by area, water type and destination in 2022 (thousand m3)1
Water discharge by type

Water discharge by type of destination

Total water
discharged (2)Freshwater

Other water

Surface water

Groundwater

SeawaterThird-party water

Total (all areas)

25,144

025,14423

16,317

8,090

715

Total (water-stressed areas)

9,867

0

9,867

0

1,738

8,090

39

Areas

1. Data for Mobility & New Commerce and Trading are not material for this indicator and therefore are not reported.
2. Freshwater: total dissolved solids ≤ 1000 mg/l. Other water:> 1000 mg/l total dissolved solids.

Total water discharge by area, water type and destination in 2021 (thousand m3)1
Water discharge by type

Water discharge by type of destination

Total water
discharged (2)Freshwater

Other water

Surface water

Groundwater

SeawaterThird-party water

Total (all areas)

24,509024,50924

15,477

8,292

716

Total (water-stressed areas)

9,969

0

9,969

0

1,466

8,291

212

Areas

1. Data for Mobility & New Commerce and Trading are not material for this indicator and therefore are not reported.
2. Freshwater: total dissolved solids ≤ 1000 mg/l. Other water:> 1000 mg/l total dissolved solids.

Total water discharge by area, water type and destination in 2020 (thousand m3)1
Water discharge by type

Water discharge by type of destination

Total water
discharged (2)Freshwater

Other water

Surface water

Groundwater

Seawater

Total (all areas)

29,470029,47026

17,715

10,910819

Total (water-stressed areas)

10,291

0

10,291

0

1,608

8,514

169

Areas

Third-party water

1. Data for Mobility & New Commerce and Trading are not material for this indicator and therefore are not reported.
2. Freshwater: total dissolved solids ≤ 1000 mg/l. Other water:> 1000 mg/l total dissolved solids.

186

CHAPTER 5 Appendix

Total water discharge by area, water type and destination in 2019 (thousand m3)1
Water discharge by type

Water discharge by type of destination

Total water
discharged (2)Freshwater

Other water

Surface water

Groundwater

SeawaterThird-party water

Total (all areas)

37,735037,73525

24,551

12,187971

Total (water-stressed areas)

10,4010

10,401

0

1,487

8,742

172

Areas

1. Data for Mobility & New Commerce and Trading are not material for this indicator and therefore are not reported.
2. Freshwater: total dissolved solids ≤ 1000 mg/l. Other water:> 1000 mg/l total dissolved solids.

Total water discharge by area, water type and destination in 2018 (thousand m3)1
Water discharge by type

Water discharge by type of destination

Total water
discharged (2)Freshwater

Other water

Surface water

Groundwater

SeawaterThird-party water

Total (all areas)

40,020040,01633

24,45014,4701,067

Total (water-stressed areas)

11,066

0

11,066

0

1,223

9,604

239

Areas

1. Data for Mobility & New Commerce and Trading are not material for this indicator and therefore are not reported.
2. Freshwater: total dissolved solids ≤ 1000 mg/l. Other water:> 1000 mg/l total dissolved solids.

[GRI 303-5] Water consumption
Total water consumption by area (2022-2018) (thousand m3)1
2022

Total

2021

All areas

Areas withwater stress

7,999

6,318

2020

All areas

Areas withwater stress

8,896

7,005

2019

All areas

Areas withwater stress

8,289

6,644

2018

All areas

Areas withwater stress

All areas

Areas withwater stress

23,173

8,059

8,321

9,051

1. Data for Mobility & New Commerce and Trading are not material for this indicator and therefore are not reported.

EM-EP-140a.1 / SASB RT-CH-140a.1 / SASB EM-RM-140a.1] Water management1
Percentage of freshwater recycled2,3 (2022-2018) (thousand m3)
Total

2022

2021

2020

2019

2018

13 %

12 %

12 %

10 %

12 %

1. Rest of the indicator answered in GRI 303-3 and 303-5.
2. Percentage of recycled water is calculated as the volume of water recycled (thousand m3) divided by the volume of water withdrawn. Any volume of water reused several times counts as recycled water each time it isrecycled and reused.
3. Data for Mobility & New Commerce and Trading are not material for this indicator and therefore are not reported.

187

CHAPTER 5 Appendix[SASB EM-EP-140a.2] Water management
Volume of water managed in the Exploration & Production business (2022-2018) (thousand m3)
Produced water
Flowback fluid (1)

2022

2021

2020

2019

2018

16,98414,145

16,48023,71923,786

0

0

0

0

0

% discharged

—%

1%

2%

3%

3%

% injected

86 %

100 %

97 %

97 %

97 %

% recycled

—%

—%

—%

—%

—%

4

N/A

N/A

N/A

N/A

Hydrocarbons water discharged (2)1. Cepsa does not employ hydraulic fracturing techniques.
2. 2022 was the first year this indicator was reported.

188

CHAPTER 5 Appendix

3.5.4 Biodiversity protection[GRI 304-3] Habitats protected or restored
Madrevieja environmental station (San Roque, Spain, 20 Ha): the Madrevieja environmental station comprises the following ecosystems (20 Ha): Bosque (12.19 Ha),
Humedales (1.42 Ha) and Pastizal (6.39 Ha). Key projects promoted by the Cepsa Foundation during the year include bird ringing for science and the barn owl recovery
project, with another nine birds recovered from breeding pairs. The site was also confirmed as one of the few places in Campo de Gibraltar congregating all species of theprovince’s carnivores. Otter breeding in the southern lagoon attracted the interest of photographers and naturalists alike. In addition to the flora and fauna, all scheduled
maintenance activities were carried out. A restoration project file was created and will be included in the updated publication of the Spanish Biodiversity Foundation's
Practical Guide on Ecological Restoration. Lastly, on the awareness-raising front, we received more than 10,000 visits and devised the Barn owl workshop to promote theBarn Owl Project and the species inventory. Meanwhile, 659 species were uploaded to the Observado.org and 579 to the iNaturalist biodiversity platforms.
Primera de Palos lagoon (Palos de la Frontera, Spain, 33 Ha): this year, new species -egret, crab heron, cattle egret and spoonbill- were added to the heron and little egretcolony. Highlights of Cepsa Foundation-led projects included eliminating exotic fish species and drying out the lagoon to facilitate mineralisation of the sludge. Another key
action entailed deepening areas that had become clogged to ensure that the breeding colonies were insulated and to create vital microhabitats for the various
communities of fauna and flora. Birdlife was monitored continuously, while we continued to ring migratory birds, capturing 223 birds through October. Maintenance work
centred on the coastal pine forest. Actions were undertaken to reduce the risk of fire and speed up forest succession by promoting species with the greatest ecologicalvalue. Lastly, temporary ponds and sanctuaries were created to help attract and preserve amphibians and reptiles in the area, as both have been impacted heavily.
As for associations, we are receiving advice on our green transition and special support on biodiversity projects by the International Union for Conservation of Nature(IUCN), with which we signed an agreement in 2021.
Habitats protected or restored in 2022 by business, geographic location and size (m2)Size (m2) per habitat

Habitats protected or restored

Business

Geographic location

Madrevieja environmental station

Energy Parks, Chemicals, C&CE

San Roque, Spain

200,000

Primera de Palos lagoon

Energy Parks, Chemicals, G&P

Huelva, Spain

335,000

Las Lagunas de Muelle de las Carabelas

Energy Parks, Chemicals, G&P

Huelva, Spain

20,900Total size (m2)555,900

Habitats protected or restored in 2021 by business, geographic location and size (m2)Size (m2) per habitat

Habitats protected or restored

Business

Geographic location

Madrevieja environmental station

Energy Parks, Chemicals, C&CE

San Roque, Spain

200,000

Primera de Palos lagoon

Energy Parks, Chemicals, G&P

Huelva, Spain

335,000

Las Lagunas de Muelle de las Carabelas(La Rábida)

Energy Parks, Chemicals, G&P

Huelva, Spain

19,700Total size (m2)554,700189CHAPTER 5 Appendix[GRI 304-4] IUCN Red List species and national conservation list species with habitats in areas affected by operations
Species by level of extinction risk in areas of operation (2022-2018)
National conservation list species (1)

2022

2021

Critically endangered

4

4Endangered

15

15

Vulnerable

35

35

Near threatened42

42

Least concern

0

0

Total

96

96

1. Reported data from the Ecoacas 2021 ASA (average species abundance) report. The consensus is that the situation did not change in 2022.

[GRI 304-2] Significant impacts of activities, products, and services on biodiversity
The main impacts of our activities are on the air, sea, land, ground water, noise levels and biodiversity. Of all Cepsa’s operational sites, the following are located inprotected areas and areas of high biodiversity value outside protected areas: San Roque, Palos and Tenerife sites in Spain; Caracara and Llanos 22 in Colombia; Lote 131 in
Peru; Detén in Brazil; and Becancour in Canada.
Of those, we carried out habitat protection or restoration work at San Roque (the Madrevieja environmental station) and Huelva (the Laguna Primera de Palos lagoon). At
Laguna Primera de Palos, there was no impact from industrial operations, but rather from agricultural activity due to the contribution of sediments and nutrients. In 2022,
we worked on reducing this environmental impact by creating a nutrient and sediment trap at the mouth of the lagoon.
Meanwhile, we discovered that the Montagu's harrier migrates to and from and reproduces at the Alijar II wind farm, so we had to adapt how the wind turbine generators
work so as not to jeopardise or change use of this area by this bird species.

190

CHAPTER 5 Appendix

Operational sites in or adjacent to protected areas or areas of high biodiversity value
We put up informational billboards about our industrial areas that are in or adjacent to -within 1km- highly vulnerable areas or those that are located close to areas of
special biodiversity importance according to the definition of protected areas of the IUCN, the Ramsar Convention, the Natura 2000 Network, IBA and national laws.
Operational sites in or adjacentto protected areas or areas ofhigh biodiversity and size of site Geographic location
measured in km

Type of operation (office,manufacturing or production, or
extractive)

Position in relation to theprotected area (in the area,
Biodiversity value (terrestrial,
adjacent to -<1km- or nearor maritime-1-5km-) or the high biodiversity freshwater
value area outside the protected ecosystem)
area

Protected biodiversity lists

Palos de la Frontera facilities

Spain

Manufacturing

Adjacent (<1 km)

Laguna de Palos and las Madres(RAMSAR, SCI, IUCN II)

Palos de la Frontera facilities

Spain

Manufacturing

Adjacent (<1 km)

Estero de Domingo Rubio(SCI, Birds Directive Special
Protection Area, IUCN II, Natura
2000 Network)

Palos de la Frontera facilities

Spain

Manufacturing

Adjacent (<1 km)

El Odiel dunes(SCI)

Cepsa drew up a Biodiversity Action Plan (BAP) for the Palos de la Frontera and San Roque facilities to minimise the potential impact of activities there on areas of special
biodiversity importance.
The restoration work we undertook in the Primera de Palos lagoon -the area closest to the Huelva site- achieved considerable improvement in the lagoon's biodiversity
and ecological conditions.
Other sensitive areas around the production sites
Operational sites in or
adjacent to protected areas or Geographic location
areas of high biodiversity andsize of site measured in km2

Type of operation(office,manufacturing or
production, or
extractive)

Position in relation to theprotected area (in the area,
Biodiversity value (terrestrial,
adjacent to -<1km- or nearor maritime-1-5km-) or the high biodiversity freshwater
value area outside the protected ecosystem)
area

Protected biodiversity lists

San Roque facilities

Spain

Manufacturing

Near (1-5 km)

Palmones River marshes(SCI, Birds Directive Special Protection Area, Natura 2000
Network)

San Roque facilities

Spain

Manufacturing

Near (1-5 km)

Palmones River marshes seabed(SCI, Natura 2000 Network)

San Roque facilities

Spain

Manufacturing

Near (1-5 km)

Eastern strait(SCI)

San Roque facilities

Spain

Manufacturing

Near (5-20 km)

Rock of Gibraltar(SCI, Birds Directive Special Protection Area)

San Roque facilities

Spain

Manufacturing

Near (5-20 km)

Southern waters of Gibraltar(SCI, Birds Directive Special Protection Area)

San Roque facilities

Spain

Manufacturing

Near (5-20 km)

Los Alcornocales(SCI, Birds Directive Special Protection Area, Natura 2000
Network)

San Roque facilities

Spain

Manufacturing

Near (5-20 km)

Strait(SCI, Birds Directive Special Protection Area, Natura 2000
Network)

San Roque facilities

Spain

Manufacturing

Near (5-20 km)

Guadiaro River estuary(SCI, IUCN II, Natura 2000 Network)

San Roque facilities

Spain

Manufacturing

Near (5-20 km)

Guadiaro and Hozgarganta rivers(SCI, Natura 2000 Network)

San Roque facilities

Spain

Manufacturing

Near (5-20 km)

Guadiaro River estuary seabed(SCI, Birds Directive Special Protection Area, Natura 2000
Network)

Alijar wind farm

Spain

Electricity generation

Near (5-20 km)

Doñana(RAMSAR, SCI, Birds Directive Special Protection Area,
IUCN II, Natura 2000 Network)

191

CHAPTER 5 Appendix

Operational sites in or
adjacent to protected areas or Geographic location
areas of high biodiversity andsize of site measured in km2

Type of operation(office,manufacturing or
production, or
extractive)

Position in relation to theprotected area (in the area,
Biodiversity value (terrestrial,
adjacent to -<1km- or near
freshwater or maritime-1-5km-) or the high biodiversity ecosystem)
value area outside the protectedarea

Protected biodiversity lists

Palos de la Frontera facilities

Spain

Manufacturing

Near (1-5 km)

Odiel marshes(RAMSAR, SCI, Biosphere Reserve, Birds Directive Special
Protection Area, IUCN II, Natura 2000 Network)

Palos de la Frontera facilities

Spain

Manufacturing

Near (1-5 km)

Tinto River marshes and banks(SCI, Natura 2000 Network)

Palos de la Frontera facilities

Spain

Manufacturing

Near (1-5 km)

Tinto River estuary(SCI, Natura 2000 Network)(SCI)

Palos de la Frontera facilities

Spain

Manufacturing

Near (1-5 km)

Dehesa del Estero y Montes deMoguerPalos de la Frontera facilities

Spain

Manufacturing

Near (1-5 km)

Tinto River and El Odiel sea area

(Marine Protected Area, OSPAR, Birds Directive Special
Protection Area)

Palos de la Frontera facilities

Spain

Manufacturing

Near (5-20 km)

Doñana(RAMSAR, SCI, Birds Directive Special Protection Area,
IUCN V, Natura 2000 Network)

Alijar wind farm

Spain

Electricity generation

Near (5-20 km)

Doñana(RAMSAR, SCI, Birds Directive Special Protection Area,
IUCN II, Natura 2000 Network)

Palos de la Frontera facilities

Spain

Manufacturing

Near (1-5 km)

Odiel marshes(RAMSAR, SCI, Biosphere Reserve, Birds Directive Special
Protection Area, IUCN II, Natura 2000 Network)

Alijar wind farm

Spain

Electricity generation

Near (5-20 km)

Doñana(RAMSAR, SCI, Birds Directive Special Protection Area,
IUCN II, Natura 2000 Network)

Palos de la Frontera facilities

Spain

Manufacturing

Near (1-5 km)

Odiel marshes(RAMSAR, SCI, Biosphere Reserve, Birds Directive Special
Protection Area, IUCN II, Natura 2000 Network)

Palos de la Frontera facilities

Spain

Manufacturing

Near (1-5 km)

Tinto River marshes and banks(SCI, Natura 2000 Network)

Palos de la Frontera facilities

Spain

Manufacturing

Near (1-5 km)

Tinto River and El Odiel sea area

(Marine Protected Area, OSPAR, Birds Directive Special
Protection Area)

Palos de la Frontera facilities

Spain

Manufacturing

Near (5-20 km)

Doñana(RAMSAR, SCI, Birds Directive Special Protection Area,
IUCN V, Natura 2000 Network)

Alijar wind farm

Spain

Electricity generation

Near (5-20 km)

Doñana(RAMSAR, SCI, Birds Directive Special Protection Area,
IUCN II, Natura 2000 Network)

Palos de la Frontera facilities

Spain

Manufacturing

Near (1-5 km)

Odiel marshes(RAMSAR, SCI, Biosphere Reserve, Birds Directive Special
Protection Area, IUCN II, Natura 2000 Network)

Palos de la Frontera facilities

Spain

Manufacturing

Near (5-20 km)

El Burro marshes(IUCN I)

Palos de la Frontera facilities

Spain

Manufacturing

Near (5-20 km)

Gulf of Cadiz(Marine Protected Area, OSPAR Birds Directive Special
Protection Area)

Tenerife facilities

Spain

Manufacturing

Near (1-5 km)

Anaga(SCI, Birds Directive Special Protection Area, IUCN V)

Tenerife facilities

Spain

Manufacturing

Near (5-20 km)

Ijuana(SCI, IUCN I)

Tenerife facilities

Spain

Manufacturing

Near (5-20 km)

Pijaral(SCI, IUCN I)

Tenerife facilities

Spain

Manufacturing

Near (5-20 km)

Los Roques de Anaga(SCI, IUCN III)

Tenerife facilities

Spain

Manufacturing

Near (5-20 km)

Malpais de Güimar

(SCI, IUCN V)

Tenerife facilities

Spain

Manufacturing

Near (5-20 km)

Las Palomas(SCI, IUCN V)

Tenerife facilities

Spain

Manufacturing

Near (5-20 km)

Corona Forestal(SCI, IUCN II)

Tenerife facilities

Spain

Manufacturing

Near (5-20 km)

Las Lagunetas(SCI, IUCN V)

192

CHAPTER 5 Appendix

Operational sites in or
adjacent to protected areas or Geographic location
areas of high biodiversity andsize of site measured in km2

Type of operation(office,manufacturing or
production, or
extractive)

Position in relation to theprotected area (in the area,
Biodiversity value (terrestrial,
adjacent to -<1km- or near
freshwater or maritime-1-5km-) or the high biodiversity ecosystem)
value area outside the protectedarea

Protected biodiversity lists

Tenerife facilities

Spain

Manufacturing

Near (5-20 km)

Sebadales de San Andres(SCI)

Tenerife facilities

Spain

Manufacturing

Near (5-20 km)

Sebadales de Antequera(SCI)

Tenerife facilities

Spain

Manufacturing

Near (5-20 km)

Montes y Cumbres de Tenerife(Birds Directive Special Protection Area)

Tenerife facilities

Spain

Manufacturing

Near (5-20 km)

Anaga sea area

(Birds Directive Special Protection Area)

Tenerife facilities

Spain

Manufacturing

Near (5-20 km)

Coast of Acentejo(IUCN V)

Tenerife facilities

Spain

Manufacturing

Near (5-20 km)

Siete Lomas(IUCN V)(IUCN V)

Detén

Brazil

Production

Near (5-20 km)

North coast continental shelfenvironmental protection area

Detén

Brazil

Production

Near (5-20 km)

Guarajuba lagoon environmental
protection area

(IUCN V)

Detén

Brazil

Production

Near (5-20 km)

Bay of All Saints environmental
protection area

(IUCN V)

Detén

Brazil

Production

Near (5-20 km)

As Dunas private natural heritage
reserve(IUCN IV)

Becancour

CanadaProduction

Near (1-5 km)

Montesson Island seabird sanctuary(IUCN VI)

Becancour

CanadaProduction

Near (1-5 km)

Lamarier Bay seabird sanctuary(IUCN VI)

Becancour

CanadaProduction

Near (1-5 km)

Montesson Island seabird sanctuary(IUCN VI)
(IUCN VI)

Becancour

CanadaProduction

Near (1-5 km)

Battures de Gentilly seabird
sanctuary

Becancour

CanadaProduction

Near (1-5 km)

Ponte-Paul-Rivière aux Originauxseabird sanctuary(IUCN VI)

Becancour

CanadaProduction

Near (5-20 km)

Muskrat habitat southwest of Port
Laviolette(IUCN VI)

Becancour

CanadaProduction

Near (5-20 km)

Port Saint-François-Pont Lavioletteseabird sanctuary(IUCN VI)

Becancour

CanadaProduction

Near (5-20 km)

Batiscan-Sainte-Anne seabird
sanctuary(IUCN VI)

Becancour

CanadaProduction

Near (5-20 km)

Champlain Batiscan seabird
sanctuary(IUCN VI)

Becancour

CanadaProduction

Near (5-20 km)

Becquets Deschaillons seabird
sanctuary(IUCN VI)

Becancour

CanadaProduction

Near (5-20 km)

Léon-Provancher ecological reserve(IUCN I)
China national marine reserve

Cepsa Chemical Shanghai

China

Production

Near (5-20 km)

Shanghai Three Jinshan Islands
national marine nature reserve

Caracara

Colombia

Production

Near (1-5 km)

El Tigrillo Civil Society Nature
Reserve

IUCN VI

Caracara

Colombia

Production

Near (1-5 km)

Maiciana-Manacal wetland
recreation area

IUCN V193

CHAPTER 5 Appendix

Operational sites in or
adjacent to protected areas or Geographic location
areas of high biodiversity andsize of site measured in km2

Type of operation(office,manufacturing or
production, or
extractive)

Position in relation to theprotected area (in the area,
Biodiversity value (terrestrial,
adjacent to -<1km- or near
freshwater or maritime-1-5km-) or the high biodiversity ecosystem)
value area outside the protectedarea

Caracara

Colombia

Production

Near (5-20 km)

Campoflorido (Civil Society Nature
Reserve)

Llanos 22

Colombia

Production

Near (5-20 km)

San Miguel de los Farallones regional IUCN II
nature park

Llanos 22

Colombia

Production

Near (5-20 km)

Quebrada de la Tablona

National protected forest reserves / VI managed protected
area

Jilguero

Colombia

Production

Near (1-5 km)
1.6 km from the Jilguero south
well

DMI Mata de la Urama

Regional integrated management districts / VI managed
resource protected area

Jilguero

Colombia

Production

Far (> 20 km)

Noel Parra Palacio

Civil society nature reserve / VCI managed resource
protected area

Jilguero

Colombia

Production

Far (> 20 km)

La Reserva

Civil society nature reserve / VCI managed resource
protected area

PunteroColombia

Production

Near (5-20 km)

Corozito

Civil society nature reserve / VCI managed resource
protected area

PunteroColombia

Production

Near (5-20 km)

La Palma

Civil society nature reserve / VCI managed resource
protected area

Merecure

Colombia

Production

Near (5-20 km)

Las Brisas

Civil society nature reserve / VCI managed resource
protected area

Merecure

Colombia

Production

Near (5-20 km)

Médano Los Morrucos

Civil society nature reserve / VCI managed resource
protected area

Merecure

Colombia

Production

Far (> 20 km)

AICA/IBA Taparas

SEO-BirdLife

Los Ángeles

Peru

Production

Far (> 20 km)

El Sira communal reserve

IUCN VI

BMS

Algeria

Production

Far (> 20 km)

Sanghr Jabbess National Park

National protected area

Protected biodiversity lists

VI managed resource protected area

194

CHAPTER 5 Appendix[SASB EM-RM-120a.2] Number of refineries in or near areas of dense population
Three of our refineries are in or near areas of dense population. Areas of dense population are defined as urbanised areas with a population > 50,000 or within 49
kilometres of these areas.

[SASB EM-EP-160a.3] Percentage of proved and probable reserves
Proved and probable reserves in protected areas in the Exploration & Production business1 (2022-2018) (%)
2022

2021

2020

2019

2018

Percentage of net proved reserves

0.25 %

0.20 %

0.12 %

0.15 %

0.21 %

Percentage of net probablereserves

0.12 %

0.07 %

0.09 %

0.09 %

0.14 %

1. Within 5 km of the boundary of our facilities.

Biodiversity impact assessments
Number of assets

Area (hectares)

Operated assets

261134.7

Operated assets with biodiversity impact assessments in the last five
years

26

1134.71

Operated assets near locations of high biodiversity value

3317.05

Operated assets near locations of high biodiversity value with abiodiversity plan in place

3317.05195

CHAPTER 5 Appendix[GRI 306-3] Significant spills
Number and volume of significant spills in 2022 by material (volume in no. of barrels or litres)
Material of spill
Oil spill (no. barrels)

Other spills (litres)

Soil (1)

Water surface

Total

Soil (1)

Water surface

Number of spills

2

0

2

1

0

Total
1

Volume of spills

94

0

94

12,0000

12,000

1. Two spills (94 oil barrels) at Exploration and Production at the RKF field (Algeria). The safety analysis performed during excavation work uncovered wet sand, which was separated from dry sand to calculate theamount of crude oil spilt.
2. One spill (12.000 litres) at Mobility and New Commerce at the Santa Ana service station (Spain). A total of 12,000 litres of Star Diesel were spilled during the station’s waterproofing tests.

Number and volume of significant spills in 2021 by material (volume in no. of barrels or litres)
Material of spill
Oil spill (no. barrels)

Other spills (litres)

Soil (1)

Water surface

Total

Soil

Water surface (2)Number of spills

1

0

1

0

1

Total
1

Volume of spills

2

0

2

0

1,500

1,500

1. One spill (2 oil barrels) at Exploration and Production at the Caracara block (Colombia). It was controlled and the area was cleaned up immediately. The section of the line affected was separated.
2. One spill (1,500 litres) at Commercial and Clean Energies at Atlas Ceuta (Spain). It was due to the rupture of a hose when the Anafi barge was being loaded with VLSFO 0.5. Most of the spill was on the water surface
and the barge’s deck. Sepiolite was used to clean up the spill on the pier.

Number and volume of significant spills in 2020 by material (volume in no. of barrels or litres)
Material of spill
Oil spill (no. barrels)

Other spills (litres)

Soil (1)

Water surface

Total

Soil (2) (3) (4)Water surface

Total

Number of spills

1

0

1

3

0

3

Volume of spills

2

0

2

2,535

0

2,535

1. One spill (2 oil barrels) at Exploration and Production at the RKF field (Algeria) due to a break in the line. The oil spilled onto desert soil and was controlled. The line was repaired immediately and the entire spill was
cleaned up.
2.One spill (235 litres) at Exploration and Production at the Caracara field (Colombia) due to a break in the line. The product spilled onto industrial and non-industrial land and was controlled. The line was repaired
immediately and the entire spill was cleaned up.
3. One spill (1,700 litres) at Commercial and Clean Energies at the Teruel (Spain) gas facility. The product was spilled onto industrial pavement and cleaned up immediately, thus avoiding any contamination of the soil.
4.One spill (600 litres) at Mobility and New Commerce at he Malaga service station (Spain). The product was spilled onto industrial pavement and cleaned up immediately. Soil samples were taken by a soil engineer, whoverified that there was no impact on the soil.

196

CHAPTER 5 Appendix

Number and volume of significant spills in 2019 by material (volume in no. of barrels or litres)
Material of spill
Oil spill (no. barrels)

Other spills (litres)

Soil

Water surface

Total

Soil (1) (2) (3)Water surface

Number of spills

00Volume of spills

0

0

Total

0

5

0

5

0

41,967

041,967

1. One spill (773 litres) at Exploration and Production at the Caracara block (Colombia). The spill occurred during the transfer of the diesel from a tank and its metal dike. Control and clean-up measures were taken
immediately.
2. Two spills (15,994 litres) at Energy Parks at the La Rábida energy park (Spain). In one, there was a leak in the soda tank for biological treatment to the rainwater basin, which was cleaned up quickly. In the other, there
was a contained leak of sulphuric acid at the Energy-HDT plant. The acid was spilled onto the pavement and was controlled cleaned up immediately.
3. Two spills (25,200 litres) at Commercial and Clean Energies at Cepsa Bionergía San Roque (Spain) sustained a spill from a sulphuric acid tank rupture in the chemical warehouse. The acid was spilled onto thepavement and was controlled quickly, and the other spill was at the asphalts factory in Alcudia (Spain). A leak was uncovered through the underground connection line between the port and the factory. The spill did nottouch the floor or the sea and was withdrawn from the line and contained.

Number and volume of significant spills in 2018 by material (volume in no. of barrels or litres)
Material of spill
Oil spill (no. barrels)

Other spills (litres)

Soil

Water surface (1)

Total

Soil

Water surface (2) (3) (4)Number of spills

0

1

1

5

0

Total
5

Volume of spills

0

6

6

14,2160

14,216

1. One spill (6 oil barrels) at Energy Parks at the La Rábida energy park (PELR). Actuation of shut-off valve (MBC) in floating pipeline during offloading of B/T from the NORDIC LIGHT tanker at RLR. This triggered
activation of the Inland Maritime Plan (PIM) and the procedures to control and clean up spills on water surfaces.
2. One spill (710 litres) at Chemical at Cepsa's Puente Mayorga chemicals plant (Spain). The was an aquilate spill from drainage of the S-P103 pump. It was controlled quickly, preventing any from spilling on the floor.
3. Three spills (7,506 litres) at Energy Parks at the Tenerife (Spain) facility had a spill caused by loss of fuel in the ravine from the condensate line. Control and clean-up actions were taken immediately. The second spill
was at the La Rábida energy park (Spain), caused by a leak of MARPOL hydrocarbon water in a slops line from the Torre Arenillas jetty to RLR on the Port Authority's land. It was controlled and cleaned up immediately.
The third was at the San Roque energy park (Spain) caused by an overflow of the YT583 benzene tank. It was cleaned up and measures were put in place to prevent it from happening again.
4. One spill (6,000 litres) at Mobility and New Commercer at the Puerto Manzanall II (Spain) service station. It was diesel A and happened during unloading in the manhole pit. The fuel was extracted and the area wascleaned, then a study of the soil was carried out immediately to verify that it was under control and the risk was low.

197

CHAPTER 5 Appendix

3.5.5 Making the business more circular[GRI 306-1] Waste generation and significant waste-related impacts
Cepsa generates various kinds of waste which can be grouped together by area of activity, type and composition.
Depending on the activity, we distinguish between waste generated directly from production processes, from maintenance operations, from construction and demolition
and waste inherent in office work, kitchens and other functions performed by our people at the various Cepsa sites.
We classify waste as hazardous, non-hazardous or municipal based on type and composition.
We separate all these types of waste at source and prepare it for delivery to authorised waste management companies with the aim of eliminating environmental risks,maximising recovery of waste and performing the appropriate treatment or final disposal.
In Exploration & Production, after treating and inerting waste comprising drilling mud and cuttings, we deposit it onsite at a location allowed under the environmental
permit.

[GRI 306-3] Waste generated
Hazardous and non-hazardous waste managed in 2022-2018 (tonnes)
Composition of the waste generated

Hazardous waste

Non-hazardous waste (1)Total hazardous and non-hazardousYear

Waste managed

Waste diverted from disposal

Waste directed to disposal

2022

34,16821,02913,1392021

32,74020,872

11,8682020

35,00019,336

15,6642019

40,761

16,661

24,09926,5072018

41,29014,7832022

28,60019,372

9,228

2021

24,114

14,176

9,938

2020

17,174

9,489

7,685

2019

25,855

11,704

14,151
27,8992018

44,37016,471

2022

62,76840,401

22,3672021

56,85535,04921,806

2020

52,174

28,82523,3492019

66,61628,36638,2502018

85,66031,25354,406

1. The increase in non-hazardous waste diverted from disposal compared with previous years was due to the waste generated during the abandonment campaigns in the Casanare (Colombia) field.

198

CHAPTER 5 Appendix[GRI 306-4] Waste diverted from disposal
Waste reused, recycled and recovered, avoiding disposal, in 2022 (tonnes)
Composition of the waste generated

Hazardous waste

Recovery operations

OnsiteOffsitePreparation for reuse

0

0

0

Recycling

0

862

862

Other recovery operations

0

20,16920,169Preparation for reuse

00Recycling

0

8,061

8,061

Other recovery operations

0

11,311

11,311Total

Non-hazardous waste

Total

21,031Total

019,372

Waste reused, recycled and recovered, avoiding disposal, in 2021 (tonnes)
Composition of the waste generated

Hazardous waste

Recovery operations

OnsiteOffsiteTotal

Preparation for reuse

0

0

0

Recycling

0

1,242

1,242

Other recovery operations

0

19,63019,630Preparation for reuse

0

0

0

Recycling

0

1,517

1,517

Other recovery operations

0

12,66012,660Total

Non-hazardous waste

Total

20,872

14,177199

CHAPTER 5 Appendix

Waste reused, recycled and recovered, avoiding disposal, in 2020 (tonnes)
Composition of the waste generated

Hazardous waste

Recovery operations

OnsiteOffsitePreparation for reuse

0

0

0

Recycling

0

577

577

Other recovery operations

0

18,759Total

Non-hazardous waste

Total

18,75919,336

Preparation for reuse

0

0

0

Recycling

0

1,023

1,023

Other recovery operations

0

8,467

8,467

Total

9,490

Waste reused, recycled and recovered, avoiding disposal, in 2019 (tonnes)
Composition of the waste generated

Hazardous waste

Recovery operations

OnsiteOffsitePreparation for reuse

0

0

0

Recycling

0

2,116

2,116

Other recovery operations

0

14,546

14,546Total

Non-hazardous waste

Total

16,661

Preparation for reuse

0

0

0

Recycling

0

620

620

Other recovery operations

0

11,084

Total

11,084
11,704

Waste reused, recycled and recovered, avoiding disposal, in 2018 (tonnes)
Composition of the waste generated

Hazardous waste

Recovery operations

OnsiteOffsitePreparation for reuse

0

0

0

Recycling

0

148

148

Other recovery operations

0

14,635Total

Non-hazardous waste

Total

14,635
14,783

Preparation for reuse

0

0

0

Recycling

0

465

465

Other recovery operations

0

16,005

Total

16,005
16,470200

CHAPTER 5 Appendix[GRI 306-5] Waste directed to disposal
Waste directed to disposal in 2022 by disposal operation (tonnes)
Composition of the waste generated

Hazardous waste

Disposal operations

OnsiteOffsiteIncineration (with energy recovery)

0

0

0

Incineration (without energy recovery)

0

52

52

Landfilling0

13,087

13,087

Other disposal operations

0

0

Total

Non-hazardous waste

Total

0
13,139Incineration (with energy recovery)

0

0

0

Incineration (without energy recovery)

0

86

86

Landfilling

0

9,142

9,142

Other disposal operations

0

0

Total

0
22,367

Waste directed to disposal in 2021 by disposal operation (tonnes)
Composition of the waste generated

Hazardous waste

Disposal operations

OnsiteOffsiteIncineration (with energy recovery)

0

0

0

Incineration (without energy recovery)

0

1,388

1,388

Landfilling0

10,480

10,480

Other disposal operations

0

0

Total

Non-hazardous waste

Total

0
11,868

Incineration (with energy recovery)

0

0

0

Incineration (without energy recovery)

0

91

91

Landfilling

0

9,847

9,847

Other disposal operations

0

0

Total

0
9,938

201

CHAPTER 5 Appendix

Waste directed to disposal in 2020 by disposal operation (tonnes)
Composition of the waste generated

Hazardous waste

Disposal operations

OnsiteOffsiteIncineration (with energy recovery)

0

0

0

Incineration (without energy recovery)

0

350

350

Landfilling015,315

15,315

Other disposal operations

0

0

Total

Non-hazardous waste

Total

0
15,664

Incineration (with energy recovery)

0

0

0

Incineration (without energy recovery)

0

227

227

Landfilling

0

7,458

7,458

Other disposal operations

0

0

Total

0
7,685

Waste directed to disposal in 2019 by disposal operation (tonnes)
Composition of the waste generated

Hazardous waste

Disposal operations

OnsiteOffsiteIncineration (with energy recovery)

0

0

0

Incineration (without energy recovery)

0

460

460

Landfilling

023,64023,640

Other disposal operations

0

0

Total

Non-hazardous waste

Total

0
24,099Incineration (with energy recovery)

0

0

0

Incineration (without energy recovery)

0

123

123

Landfilling

0

14,026

14,026

Other disposal operations

0

0

Total

0
14,150202

CHAPTER 5 Appendix

Waste directed to disposal in 2018 by disposal operation (tonnes)
Composition of the waste generated

Disposal operations

Hazardous waste

OnsiteOffsiteIncineration (with energy recovery)

0

0

Total
0

Incineration (without energy recovery)

0

97

97

Landfilling

026,41026,410

Other disposal operations

0

0

0

Total

Non-hazardous waste

26,507

Incineration (with energy recovery)

0

0

0

Incineration (without energy recovery)

0

73

73

Landfilling

027,827

27,827

Other disposal operations

0

0

0

Total

27,900[SASB EM-RM-150a.1 / SASB RT-CH-150a.1] Amount of hazardous waste generated, percentage recycled (1)Hazardous waste recycled (2022-2018) (tonnes)
Total

2022

2021

2020

2019

2018

62 %

64 %

55 %

41 %

36 %

1. Rest of the indicator answered in GRI 306-3.

[GRI 301-1] Materials used by weight or volume
Materials used (2022-2018) (thousand tonnes)
2022
Total

2021

2020

2019

2018

Renewable

Non-renewable

Renewable

Non-renewable

Renewable

Non-renewable

Renewable

Non-renewable

Renewable

Non-renewable

391

23,739453

23,150404

22,221506

25,069441

25,824[GRI 301-2] Recycled input materials used
Recycled raw materials (2022-2018) (tonnes)
Total

2022

2021

2020

2019

2018

2,180

1,300

240

250

0

203

CHAPTER 5 Appendix

3.5.6 Continuous control of our air emissions[GRI 305-7] [SASB EM-EP-120a.1 / SASB EM-RM-120a.1 / SASB RT-CH-120a.1] Nitrogen oxides (NOx), sulfur oxides (SOx) other significant air
emissions
Non-GHG air emissions by type (2022-2018) (tonnes)
Non-GHG emissions

2022

NOx

8,830

SOx

5,508

VOC

1,133

Particulate matter

537

2021

2020

2019

2018

8,268

9,055

11,643

8,097

4,453

4,079

5,101

5,319

1,350

1,794

2,529

1,396

490

438

642

332

204

CHAPTER 5 Appendix

3.6 A WORKPLACE READY FOR CHANGE
3.6.1 Workforce overview[GRI 405-1] Diversity of governance bodies and employees
Diversity of governance bodies and employees in 2022 and 2021 by gender and age group
2022

Gender2021

Board of Directors

Board of Directors %Board of Directors

Women

1

10 %

1

10 %

Men

9

90 %

9

90 %

Management Committee

Executives %Management Committee

Under 30 years old

0

—%

0

—%

30-50 years old

2

18 %

1

11 %

Over 50 years old

9

82 %

8

89 %

Women

3

27 %

1

11 %

Men

8

73 %

8

89 %

2022

Age group

GenderBoard of Directors %2021
Executives %Breakdown of employees by gender in 2022-2021
2022

2021

Women

Men

Total

Women

Men

Total

3,915

6,395

10,310

3,650

6,170

9,820

205

CHAPTER 5 Appendix

Employees in 2022 by employee category, gender and age group1
Under 30 years old

30-50 years old

Over 50 years old
Total

Employee
category

Women

Women, %Men

Men, %

Women

Women, %Men

Men, %

Women

Women, %Men

Men, %

Executives

0

—%

0

—%

19

31 %

42

69 %

17

22 %

62

78 %

140

Department
heads

0

—%

1

100 %

131

29 %

324

71 %

71

24 %

223

76 %

750

Senior-leveltechnical
staff

52

36 %

94

64 %

521

36 %

907

64 %

138

24 %

429

76 %

2,141

Mid-level
technical
staff

81

57 %

61

43 %

192

28 %

487

72 %

105

23 %

342

77 %

1,268

Specialists

309

46 %

356

54 %

1,623

45 %

1,987

55 %

588

37 %

990

63 %

5,853

Clerical staff

10

77 %

3

23 %

24

60 %

16

40 %

7

33 %

14

67 %

74

Assistants

1

11 %

8

89 %

12

24 %

39

76 %

14

58 %

10

42 %

84

Total

453

523

2,522

3,802

940

2,070

10,3101 In 2022, the percentage of women promoted was 37%.

Employees in 2021 by employee category, gender and age group
Under 30 years old

30-50 years old

Over 50 years old
Total

Employee
category

Women

Women, %Men

Men, %

Women

Women, %Men

Men, %

Women

Women, %Men

Men, %

Executives

0

—%

0

—%

14

33 %

29

67 %

8

12 %

61

88 %

112

Department
heads

1

50 %

1

50 %

116

27 %

308

73 %

65

25 %

200

75 %

691

Senior-leveltechnical
staff

34

29 %

84

71 %

500

38 %

828

62 %

122

24 %

387

76 %

1,955

Mid-level
technical
staff

19

40 %

29

60 %

224

30 %

527

70 %

88

21 %

332

79 %

1,219

Specialists

245

45 %

300

55 %

1,585

44 %

2,055

56 %

547

37 %

939

63 %

5,671

Clerical staff

8

73 %

3

27 %

34

62 %

21

38 %

14

52 %

13

48 %

93

Assistants

3

17 %

15

83 %

11

26 %

31

74 %

11

58 %

8

42 %

Total

310

432

2,484

3,799

855

1,940

79
9,820

206

CHAPTER 5 Appendix

Share of female workers in 2022 and 2021
We are committed to having women represent 30% of management positions by 2025.
2022

2021

Share of women in total employees

38 %

37 %

Share of women in all management positions, including junior, middle and senior management

27 %

25 %

Share of women in junior management positions

27 %

26 %

Share of women in senior management positions

26 %

19 %

Share of women in management positions in key revenue-generating roles

18 %

18 %

Share of women in STEM-related positions

19 %

17 %

Total number and distribution of employees in 2022 and 2021 by gender and country
2022

2021

Country

Women

Men

Total

Women

Men

Total

Algeria

8

86

94

12

103

115

Belgium

3

5

8

5

4

9

Brazil

39

146

185

37

142

179

Canada

17

55

72

17

54

71

China

26

107

133

25

101

126

Colombia

32

92

124

36

100

136

United Arab Emirates

5

29

34

5

22

27

3,431

5,552

8,983

3,139

5,321

8,460

United States

0

0

0

0

0

0

Italy

1

6

7

2

4

6

Malaysia

0

1

1

0

1

1

Morocco

0

1

1

0

2

2

Mexico

6

6

12

5

7

12

Spain

Netherlands

2

3

5

3

3

6

Peru

4

25

29

5

26

31

333

274

607

341

270

611

5

4

9

4

5

9

Portugal
UK
Singapore

3

4

7

2

4

6

Thailand

0

0

0

11

3

14

3,915

6,395

10,310

3,649

6,171

9,820

Total

207

CHAPTER 5 Appendix[GRI 2-7] Employees
Breakdown of employees in 2022 and 2021 by part-time/full-time and by region
2022
Region (1)Employment type
Permanent

Spain

Americas

Asia

EuropeAfrica

2021

Women

Men

Total

Women

Men

Total

3,173

5,341

8,514

2,646

4,928

7,574

Temporary

258

211

469

493

393

493

Full-time

3,223

5,419

8,642

2,960

5,206

8,166

Part-time

208

133

341

179

115

294

Permanent

97

315

412

100

329

429

Temporary

1

9

10

0

0

0

Full-time

98

324

422

100

329

429

Part-time

0

0

0

0

0

0

Permanent

34

139

173

42

128

129

Temporary

0

2

2

1

3

4

Full-time

34

141

175

43

131

174

Part-time

0

0

0

0

0

0

Permanent

323

270

593

328

268

596

Temporary

21

21

42

27

17

44

Full-time

338

285

623

349

277

626

Part-time

6

6

12

6

8

14

Permanent

8

87

95

12

105

117

Temporary

0

0

0

0

0

0

Full-time

8

87

95

12

105

117

Part-time

0

0

0

0

0

0

1. America: Brazil, Canada, Colombia, the United States, Mexico and Peru. Asia: China, UAE, Malaysia, Singapore and Thailand. Europe: Belgium, Italy, the Netherlands, Portugal and the United Kingdom. Africa: Algeria andMorocco.
2. The sum of permanent and temporary employees yields the total headcount. Likewise, the sum of full-time and part-time employees yields that same total.

208

CHAPTER 5 Appendix

Average annual number of permanent, temporary and part-time contracts by gender, age and employee category
Average annual number of permanent and temporary employment contracts in 2022 and 2021 by employee category, age and gender
2022
Employee category

2021

Permanent

Temporary

Permanent

Temporary

Executives

125

0

105

0

Department heads

729

0

650

0

Senior-level technical staff

2,045

19

1,913

31

Mid-level technical staff

1,209

13

1,209

34

Specialists

5,101

766

4,839

820

Clerical staff

71

3

99

1

Assistants

71

16

71

5

569

329

379

346

30-50 years old

5,923

431

5,848

475

Over 50

2,859

57

2,658

69

Women

3,386

446

3,112

494

Men

5,965

370

5,773

396

Age group
Under 30 years old

Gender209

CHAPTER 5 Appendix

Average annual number of full-time and part-time employment contracts in 2022 and 2021 by employee category, age group and gender
2022
Employee category
Executives
Department heads
Senior-level technical staff

2021

Full-timePart-time

Full-timePart-time

125

0

106

0

721

8

644

6

2,024

39

1,915

28

Mid-level technical staff

1,221

1

1,242

1

Specialists

5,581

286

5,420

238

Clerical staff

73

1

99

0

Assistants

84

3

73

3

Under 30 years old

797

101

649

76

30-50 years old

6,176

178

6,172

152

Over 50

2,857

59

2,679

48

Women

3,630

203

3,439

167

Men

6,200

134

6,061

109

Age group

Gender210

CHAPTER 5 Appendix

3.6.2 Talent with purpose
Employee satisfaction
Our approach to managing employee engagement is predicated on a model of continuous feedback, which gives us insight into our people’s concerns so we can implement
improvement plans. This type of active listening model at Cepsa is articulated through our internal digital platform, Connect, which allows surveys to be handled quickly
and efficiently.
The scope of the feedback model is corporate-wide, covering all businesses and countries where Cepsa has operations. At strategic level, the feedback schedule is set
annually, along with the frequency, the questions and the indicators for measuring satisfaction.
Key issues assessed over the course of 2022:•

Engagement: survey on engagement to assess employee satisfaction levels, measure levels of engagement and draw up general and specific action plans.

•

Ethics and regulatory compliance: fourth edition of the ethics and regulatory compliance survey to collect employees’ viewpoints on how the company has
advanced towards building a strong ethical culture.

•

Diversity: the second diversity survey to gauge employees’ perception and design tailored action plans.

•

Culture and values: framed by the project to redefine our corporate values, we asked all workers what values they identified with most.

[GRI 3-3] Management of material topics - employment practices
Cepsa has programmes to help students and recent university graduates start their career at a leading company where they can learn and improve each day.
•

Grants for dual vocational training: internships tailored to young people’s needs and support and advice from occupational tutors.

•

Inspire VT: permanent contracts for advanced vocational training graduates.

•

Welcome U: curricular or extracurricular internships for students while they continue their studies.

•

Developing U: opportunity to carry out undergraduate or master’s dissertations with the support of the company's experts.

•

Challenging U: offer of a permanent contract and certain perks to recent graduates in a number of company departments in addition to training during their firstyear.

Organisation of working time
Cepsa tailors working conditions as far as possible to each activity and business’s individual characteristics and to its peoples’ needs. It does so while strictly abiding by thelaw.
Of all employment conditions, working time is particularly important. Depending on the activity, work is performed in shifts or ‘normal’ working hours.
Collective bargaining agreements set out the various types of employee working hour arrangements, the annual work schedule, timetables, types of employment
arrangements, performance and, where appropriate, compensation scheme. They also specify calendars, work cycles, holidays and leave.
Most staff in industry and service stations work shifts, with different sequences and rotation cycles. The corporate and sales areas use the flexitime model, withcompletely flexible hours.

211

CHAPTER 5 Appendix

Average length of service
Average length of service of employees in 2022 and 2021 (years)
Average length of service (years)

2022

2021

12

13

[GRI 401-1] New employees hires and employee turnover
New hires in 2022 by region and gender
Under 30 years old
Region (1)Spain

New hires

30-50 years old

Rate of new hires

New hires

Over 50 years old

Rate of new hires

Women

Men

Women

Men

Women

Men

Women

New hires

Rate of new hires

Total Percentage

Men

Women

Men

Women

Men

577

715

158 %

178 %

825

612

37 %

19 %

112

155

13 %

8%

2,996

33 %

Americas

1

10

10 %

43 %

6

20

9 %

10 %

2

2

11 %

2%

41

10 %

Asia

2

7

20 %

23 %

1

13

4 %

13 %

1

2

—%

22 %

26

15 %

Africa

0

0

—%

—%

0

0

— %

— %

0

0

—%

—%

0

—%

Europe

75

73

112 %

107 %

61

39

31 %

27 %

15

10

19 %

13 %

273

43 %

Total

655

805

145 %

154 %

893

684

35 %

18 %

130

169

14 %

8%

3,336

32 %

1. America: Brazil, Canada, Colombia, the United States, Mexico and Peru. Asia: China, UAE, Malaysia, Singapore and Thailand. Europe: Belgium, Italy, the Netherlands, Portugal and the United Kingdom. Africa: Algeria andMorocco.

New hires in 2021 by region and gender
Under 30 years old
Region (1)New hires

30-50 years old

Rate of new hires

New hires

Over 50 years old

Rate of new hires

New hires

Rate of new hires

Total Percentage

Women

Men

Women

Men

Women

Men

Women

Men

Women

Men

Women

Men

489

535

211 %

166 %

861

571

40 %

18 %

159

120

21 %

7%

2,735

32 %

0

5

—%

31 %

7

7

9%

3%

0

1

—%

1%

20

5%

Asia

4

3

44 %

10 %

2

4

6%

4%

0

0

—%

—%

13

7%

Africa

0

1

—%

100 %

0

2

—%

2%

0

0

—%

—%

3

3%

Spain
Americas

Europe

58

68

97 %

110 %

49

40

23 %

26 %

14

7

18 %

10 %

236

37 %

Total

551

612

178 %

142 %

919

624

37 %

16 %

173

128

20 %

7%

3,007

31 %

1. America: Brazil, Canada, Colombia, the United States, Mexico and Peru. Asia: China, UAE, Malaysia, Singapore and Thailand. Europe: Belgium, Italy, the Netherlands, Portugal and the United Kingdom. Africa: Algeria andMoro4cco.

212

CHAPTER 5 Appendix

Number of hires, average cost and percentage of positions filled with internal candidates in 2022 and 2021
2022

2021

New hires (nº)

3,336

3,007

Vacancies filled by internal candidates (internal hires) (%)

10 %

16 %

36,83328,509Average cost of hiring/Headcount (€)

Voluntary departures in 2022 by region and gender
Under 30 years old
Region (1)Voluntary departures

30-50 years old

Turnover rate

Voluntary departures

Women

Men

Women

Men

Women

Spain

72

77

20 %

19 %

Americas

0

3

— %

13 %

Asia

0

4

— %

Africa00— %Over 50 years old

Turnover rate

Men

Women

101

61

5

25

13 %

2

— %

1

Voluntary departures

Turnover rate

Men

Women

Men

5 %

2 %

11

7 %

12 %

0

6

8 %

6 %

1

17 %

2 %

Total Percentage

Women

Men

5

1 %

— %

327

4%

1

— %

1 %

34

8%

0

0

— %

— %

12

7%

0

0

— %

— %

2

2%

Europe

23

27

34 %

40 %

37

22

19 %

15 %

7

2

9 %

3 %

118

19 %

Total

95

111

21 %

21 %

146

115

6 %

3 %

18

8

2 %

— %

493

28 %

1. America: Brazil, Canada, Colombia, the United States, Mexico and Peru. Asia: China, UAE, Malaysia, Singapore and Thailand. Europe: Belgium, Italy, the Netherlands, Portugal and the United Kingdom. Africa: Algeria andMorocco.

Voluntary departures in 2021 by region and gender
Under 30 years old
Region (1)Voluntary departures

30-50 years old

Turnover rate

Voluntary departures

Over 50 years old

Turnover rate

Women

Men

Women

Men

Women

Men

Spain

55

67

24 %

21 %

69

Americas

0

0

—%

—%

8

Asia

1

2

11 %

6%

3

Voluntary departures

Women

Men

Women

67

3%

2%

13

5

11 %

2%

0

3

9%

3%

0

Turnover rate

Men

Total Percentage

Women

Men

6

2%

—%

277

0

—%

—%

13

3%

1

—%

20 %

10

6%

3%

Africa

0

0

—%

—%

0

0

—%

—%

0

0

—%

—%

0

—%

Europe

16

17

27 %

27 %

20

15

9%

10 %

5

2

6%

3%

75

12 %

Total

72

86

23 %

20 %

100

90

4%

2%

18

9

2%

—%

375

4%

1. America: Brazil, Canada, Colombia, the United States, Mexico and Peru. Asia: China, UAE, Malaysia, Singapore and Thailand. Europe: Belgium, Italy, the Netherlands, Portugal and the United Kingdom. Africa: Algeria andMorocco.

213

CHAPTER 5 Appendix

Total departures in 2022 by region and gender
Under 30 years old
Region (1)Spain

Total departures

30-50 years old

Turnover rate

Total departures

Over 50 years old

Turnover rate

Total departures

Total Percentage

Turnover rate

Women

Men

Women

Men

Women

Men

Women

Men

Women

Men

Women

Men

420

578

115 %

144 %

731

474

33 %

14 %

134

213

16 %

11 %

2550

Americas

0

4

—%

17 %

5

30

7%

15 %

3

11

17 %

12 %

53

28 %
13 %

Asia

0

4

—%

13 %

12

11

50 %

11 %

1

0

—%

—%

28

16 %

Africa

0

0

—%

—%

1

2

17 %

3%

0

1

—%

5%

4

4%

Europe

57

51

85 %

75 %

63

40

32 %

28 %

19

7

25 %

9%

237

37 %

Total

477

637

105 %

122 %

812

557

32 %

15 %

157

232

17 %

11 %

2,872

28 %

1. America: Brazil, Canada, Colombia, the United States, Mexico and Peru. Asia: China, UAE, Malaysia, Singapore and Thailand. Europe: Belgium, Italy, the Netherlands, Portugal and the United Kingdom. Africa: Algeria andMorocco.

Total departures in 2021 by region and gender
Under 30 years old
RegionSpain

Total departures

30-50 years old

Turnover rate

Total departures

Over 50 years old

Turnover rate

Total departures

Total Percentage

Turnover rate

Women

Men

Women

Men

Women

Men

Women

Men

Women

Men

Women

Men

390

436

168 %

135 %

716

477

33 %

15 %

150

164

20 %

9%

2,333

4%

Americas

1

0

13 %

—%

11

13

15 %

6%

2

16

11 %

17 %

43

10 %

Asia

3

7

33 %

23 %

17

8

52 %

8%

1

5

100 %

100 %

41

24 %

Africa

0

0

—%

—%

0

1

—%

1%

0

0

—%

—%

1

1%

Europe

34

58

57 %

94 %

38

34

18 %

22 %

10

5

13 %

7%

179

28 %

Total

428

501

138 %

116 %

782

533

31 %

14 %

163

190

19 %

10 %

2,597

26 %

1. America: Brazil, Canada, Colombia, the United States, Mexico and Peru. Asia: China, UAE, Malaysia, Singapore and Thailand. Europe: Belgium, Italy, the Netherlands, Portugal and the United Kingdom. Africa: Algeria andMorocco.

214

CHAPTER 5 Appendix

Involuntary departures in 2022 and 2021 by gender, age and employee category
2022

2021

Under 30 years old

30-50 years old

Over 50 years old

Under 30 years old

30-50 years old

Women

Men

Women

Men

Women

Men

Women

Men

Women

Men

Women

Men

Executives

0

0

0

0

0

4

Department
heads

4

0

0

0

0

0

2

2

0

0

1

2

6

10

19

0

0

0

1

0

3

4

Senior-leveltechnical
staff

0

0

6

1

1

6

14

2

0

7

6

0

6

21

Mid-level
technical
staff

0

0

7

1

3

5

16

1

1

6

0

1

2

11

Specialists

2

6

17

14

3

13

55

1

3

8

8

4

6

30

Clerical
staff

0

0

2

1

1

0

4

0

1

2

1

2

0

6

Assistants

0

0

0

0

0

Total

2

6

33

19

14

0

0

0

0

0

0

0

0

0

38

112

4

5

23

16

7

19

74

Total

Over 50 years old

Total

Employee turnover rate in 2022 and 2021
2022

2021

Total employee turnover rate (1)7%5%Voluntary employee turnover rate

5%4%

1. Does not include temporary employees. The rate including temporary employees is 28 % in 2022 and 26 % in 2021.

Hours of absenteeism
Hours of absenteeism in 2022 and 2021 by gender2022
Hours of absenteeism (1)

2021

Women

Men

Total

Women

Men

Total

468,606

621,845

1,090,451

347,465

457,817805,282

1. Hours of absenteeism do not include hours for work-related injuries or occupational disease.

215

CHAPTER 5 Appendix

3.6.3 A diverse and inclusive workplace[GRI 3-3] - Management of material topics - non-discrimination and equal opportunities
Joint action with workers’ legal representatives is a key tool for ensuring employment relationships that are free of employment and job discrimination, commitment torespecting the human rights of all our people and providing a working environment that promotes utmost respect for people’s dignity. This joint action avoids at all times
any type of discriminatory behaviour on grounds of sex, ethnic origin, beliefs, religion, age, disability, political affiliation, sexual orientation, nationality, citizenship, marital
status, socioeconomic status or any other circumstances. No incidents occurred in Spain in 2022.
As stated in its Human Rights Policy, Cepsa is committed to respecting the human rights of all its employees and promoting a working environment that promotes utmost
respect for the dignity of all people, preventing at all times discriminatory behaviour on the basis of sex, ethnic background, creed, religion, age, disability, politicalaffiliation, sexual orientation, nationality, citizenship, marital status, socioeconomic status or any other circumstances.
Respect for principles of diversity and inclusion is also clearly enshrined in our Code of Ethics and Conduct and Human Resources Policy. The importance of thiscommitment within our culture is also illustrated in our Diversity and Inclusion Policy.
These policies and procedures contain measures to ensure the protection of our workers. Essentially, they target three areas of action. Firstly, reporting the situation to
the Human Resources Department and allowing workers' representatives, the person involved or any employee to lodge a complaint. Secondly, initiating an investigation
to substantiate whether or not the alleged incident of harassment has occurred. Thirdly, for incidents that have been substantiated, determining disciplinary measures
where needed and action plans to restore the workplace climate.
In parallel, according to the harassment procedure the company's Ethics and Compliance Committee receives reports on both complaints of harassment filed and thoseaddressed.
Incidences of harassment, in breach of the Code of Ethics and Conduct and internal rules and regulations, are handled mostly through the Ethics and Compliance Channel.
We have also put in place policies and reached agreements with trade unions on guidelines for action to investigate complaints of sexual harassment and mobbing.
In 2022, we updated our equality plans and Protocol against Gender-based Harassment.

Equality plans
Depending on the number of employees, Cepsa Group companies either have an equality plan or a set of measures that articulate their commitment to equality. In either
case, follow-up information on the equality plans or sets of measures is provided to workers’ representatives in the annual report. At companies that do not have such
representation, monitoring is carried out by their human resources unit.

216

CHAPTER 5 Appendix

Universal accessibility
We have a specific procedure designed to ensure that workstations are adapted so that they are accessible to people at Torre Cepsa according to each person’s specificsituation. The aim is to provide people with disabilities access to employment, enable them to carry out their jobs, afford them career opportunities and give them accessto training in line with related regulations.
Our Diversity and Inclusion Policy outlines specific integration plans for people with disabilities, providing all the necessary adjustments which will help us to continue
advancing.
On this front, we signed an agreement with ILUNION in 2022 to conduct a comprehensive review of our physical and digital accessibility. We also undertook a variety ofactions in conjunction with the Eurofirms Foundation to address real situations that people with disabilities face daily.

Breakdown of employees with disabilities in 2022 and 2021
2022

2021

Employees with disabilities (no.)

127

116

Employees with disabilities (%)

1.29 %

1.22 %

2022

2021

Breakdown of employees in 2022 and 2021 by age group
Under 30 years old (%)

9 %

8 %

30-50 years old (%)

61 %

64 %

Over 50 years old (%)

29 %

28 %

Breakdown of employees in 2022 and 2021 by nationality
2022

2021

Share of total employees (%)

Share of total management positions(%)

Share of total employees (%)

Share of total management positions(%)

Spanish

84 %

86 %

84 %

82 %

Portuguese

6%

1%

6%

2%

Brazilian

2%

—%

2%

2%

Colombian

2%

—%

2%

4%

Nationality

Chinese

1%

—%

1%

1%

Other nationalities

5%

13 %

5%

9%

217

CHAPTER 5 Appendix[GRI 401-3] Parental leave
Paternity and maternity leave in 2022 and 2021
2022

2021

Women

Men

Total

Women

Men

Total

Employees entitled toparental leave in thereporting period (no.)

95

132

227

71

141

212

Employees that tookparental leave in thereporting period (no.)

133

225

358

110

212

322

Employees that returned towork in the reporting period
after parental leave ended
(no.)

94

206

300

98

198

296

Employees that returned towork in the previous
reporting period afterparental leave ended (no.)

98

198

296

108

180

288

Employees that returned towork in the previous
reporting period afterparental leave ended thatwere still employed 12months after their return towork (no.)

80

183

263

98

167

265

Return to work rate (%)

71 %

92 %

84 %

89 %

93 %

92 %

Retention rate (%)

82 %

92 %

89 %

91 %

93 %

92 %

Promotion of local hiring
At Cepsa, we encourage enhancement of local employability and promote partnership initiatives to create jobs in the areas where our facilities are located.
Cepsa’s industry sustainability agreement with workers’ representative at its refineries and chemical plants includes a pledge to promote, support and design training
actions to upskill local personnel, to encourage dual vocational training for industrial jobs and favour, to the extent possible, employment of people from the communities
where we have our industrial facilities.
We also partner with several universities in the areas where we have facilities to provide students with a glimpse of the business world, to enable us to learn more about
each other and to promote research.

[GRI 202-2] Proportion of senior management hired from the local community
Local senior managers in 2022 and 2021
2022

2021

Senior managers (Management Committee and Executives) from the local community (no.)

119

93

Senior managers (Management Committee and Executives) (no.)

140

112

Senior managers from the local community (%)

85 %

83 %

218

CHAPTER 5 Appendix

3.6.4 Learning culture[404-1] Average hours of training per year per employee
Total and average hours of training per employee in 2022 by category and gender
Women

Men

Total

Training hours per employee

Executives

1,186

2,674

3,860

28

Department heads

10,311

25,18135,49247

Senior-level technical staff

33,701

77,185

110,886

52

Mid-level technical staff

13,67843,24956,92745

Specialists

36,825160,106

196,931

34

Clerical staff

951

567

1,518

21

Assistants

269

5,090

5,359

64

96,921

314,052

410,973

40

Total

Training hours per employee in 2022 by gender1
Female

Male

25

49

1. The Energy Parks and Chemicals businesses received the highest number of training hours because of the industrial training required in the plants. This also explains why the training ratio between men and women
was different. Given the nature of these businesses, there are more men at our industrial facilities.

Total and average hours of training per employee in 2021 by category and gender
Women

Men

Total

Average hours of training

518

1,690

2,208

20

Department heads

11,806

24,66336,46953

Senior-level technical staff

28,33164,03592,36647

Mid-level technical staff

7,841

39,304

47,14539

Specialists

30,123

148,806

178,929

32

Clerical staff

910

610

1,520

16

Assistants

493

3,721

4,214

53

80,022282,829

362,851

37

Executives

Total

219

CHAPTER 5 Appendix

Training hours per employee in 2021 by gender1
Women

Men

22

46

1. The Energy Parks and Chemicals businesses received the highest number of training hours because of the industrial training required in the plants. This also explains why the training ratio between men and women
was different. Given the nature of these businesses, there are more men at our industrial facilities.

[GRI 403-5] Worker training on occupational health and safety
Training on occupational health and safety is a key component of Cepsa’s training plans. At all workplaces, activities related with the risks inherent in the various positions
and general risks applicable to the specific workplace are scheduled bearing in mind the activity and circumstances. The main global activities that are significant due toeither their volume or their cross-cutting nature in 2022 included:•

Basic OHS qualification: the percentage of personnel yet to obtain the qualification did so during the year, taking the office (30 hours) or industrial (50 hours) OHS
courses.

•

A specific course on OHS in service stations.

•Fire drills and prevention exercises.

•

Specific first aid training.

•

Training on personal protective equipment at industrial facilities, which is updated regularly along with actions to take in the event of emergencies in our offices.

•

Training on the LOTO safety procedure to ensure equipment is prepared for maintenance work without incurring risks of accidental fires.

[GRI 404-2] Programs for upgrading employee skills and transition assistance programs
Training targets the most relevant aspects of our businesses, but we also promote training on safety and risk prevention.
We encourage employee self-development using the content offered on the company's campus, an online platform with free access to myriad educational elements for all
staff. New spaces are now for specialised content per business and department are now being created as part of an initiative to reorganise content and enhance
employees’ learning experience.
In the area of transition assistance, we provide: pre-retirement planning for employees ending their careers through retirement; retraining for those intending to continue
their careers; and severance pay, which can take into account employee age and years of service, for those ending their career through termination. Employees who are
terminated may be offered job placement services and assistance (such as training, counselling) so they can find another job.

220

CHAPTER 5 Appendix

3.6.5 Remuneration: competitiveness and engagement[GRI 2-19] Remuneration policies
Remuneration of the members of the Board of Directors is regulated by the Remuneration Policy for Directors approved by both the Board and the General Shareholders’Meeting. The Board is responsible for adopting and regularly reviewing the policy’s general principles and ensuring that they are applied.
The Nomination and Compensation Committee is tasked with reviewing and approving the remuneration of senior management and the implementing policies. These
policies are reviewed annually.

[GRI 2-20] Process to determine remuneration
Remuneration of members of the Board of Directors in their capacity as such is approved by the Board of Directors and General Shareholders’ Meeting on arecommendation by the Nomination and Compensation Committee based on the duties and responsibilities ascribed to them, their individual role on the Board of Directors
and its committees and other objective circumstances deemed relevant.
The system of director remuneration entails a fixed annual amount for directors in their capacity as such determined by the General Shareholders’ Meeting and distributed
among all directors.
The system of remuneration for directors performing executive duties in the company, in addition to adhering to principles of transparency, prudence and compliance withcorporate governance recommendations, is dictated by market trends, alignment with shareholders’ objectives, compatibility with appropriate and effective risk
management in accordance with the risk management policy, a balanced remuneration mix between fixed and variable components, and a short-, medium- and long-term
vision that encourages strategic performance by directors.
Therefore, the remuneration policy is geared towards generating value for the company through alignment with the interests of shareholders, prudent risk management
and complete respect for good corporate governance recommendations.
In 2016, the Nomination and Compensation Committee engaged an external consultant to assess the structure and competitiveness of the remuneration policies ofexecutive directors and senior managers. Based on the conclusions of this assessment, we came up with a proposal to implement an action plan to adjust the structure ofsenior managers’ remuneration and bring it to the desired levels.
In 2018 and again in 2022, the Nomination and Compensation Committee asked the consultant for another review of the remuneration structure and competitiveness. It
concluded both times that the plan was satisfactory as is and should continue to apply.
Remuneration of executive directors and senior managers comprises a fixed component, short- and long-term variable components and benefits (primarily pension plans,company car, petrol, parking and medical insurance, life and accident insurance).
The remuneration policy is geared towards generating value for the company and alignment with the interests of shareholder through prudent risk management andcomplete respect for good corporate governance recommendations.

221

CHAPTER 5 Appendix[GRI 2-21] Annual total compensation ratio
Ratio and trend in the ratio of annual total compensation in 2022 and 20211
2021

2021

Trend in ratio (2)

39.00

27.96

9.3

1.The fixed salary of the highest-earning individual did not increase in 2022. However, that individual did earn earn a bigger bonus as a result of a better earnings performance in 2021 (paid in 2022) relative to 2020 (paid in2021) and the higher weight of his variable compensation affects the trend in the ratio.
2. The ratio evolution formula considers employees in 2022 who were employed by the company in 2021.

[GRI 405-2] Ratio of basic salary and remuneration of women to men
Ratio1 of remuneration of women to men in 2022 and 2021 by employee category and significant locations22022
Country
Spain

Executives

Departmen
t heads

2021

Seniorleveltechnical
staff

Mediumtechnician

Specialists

Clericalstaff

Assistants

Executives

Departmen
t heads

Seniorleveltechnical
staff

Mediumtechnician

Specialists

Clericalstaff

Assistants

0.83

0.93

0.92

0.81

0.71

0.95

0.92

0.74

0.91

0.92

0.84

0.71

1.01

0.86

Americas

—

0.88

0.74

0.71

1.08

3.33

5.13

—

0.89

0.74

1.08

0.94

0.79

4.54

Asia

—

0.79

0.95

0

0.76

0.86

—

—

0.74

1.49

1.98

1.09

—

1.79

Europe

—

0.81

0.92

0.9

1.1

0.42

—

—

0.73

0.87

0.85

1.1

1.06

—

Africa

—

—

1.38

0.66

—

1.38

—

—

—

0.99

0.8

—

1.03

—

0.83

0.93

0.91

0.82

0.71

0.89

0.94

0.74

0.91

0.91

0.87

0.70

0.92

1.00

all locations

1. Ratio of women to men: average remuneration of women/average remuneration of men. hombres.
2. Empty cells correspond to disclosures for which there are no employees of both genders.

222

CHAPTER 5 Appendix

Average pay and trend broken down by gender, age, employee category or equivalent metricAverage remuneration 2022 and 2021 by employee category, age and gender (€)
Employee category

2022

2021

Executives

386,803

305,658

Department heads

110,906

104,928

Senior-level technical staff

59,48756,184Mid-level technical staff

41,69940,159Specialists

25,31924,366

Clerical staff

27,887

31,383

Assistants

18,776

17,257

Age group
Under 30 years old

22,616

20,34930-50 years old

43,97840,409Over 50

56,08949,568GenderFemale35,77932,319Male

51,43546,925

Average remuneration in 2022 and 2021 by gender and employee category1 (€)
2022

2021

Employee level

FemaleMale

FemaleMale

Executives

336,572

404,359

237,468

322,514

Executives (basic salary)

178,745

205,059

151,380

182,748

Department heads

105,121113,043

97,681

107,534

Department head (basic salary)

79,71285,29975,54879,992

Senior-level technical staff

55,67861,383

52,83757,863Mid-level technical staff

36,10244,07736,06041,682

Specialists

20,60328,886

19,50727,882

Clerical staff

26,47829,63730,31032,980Assistants

18,004

19,143

17,301

17,234

Other employees (basic salary) (2)25,92634,15824,941

32,592

1. Ratio of women to men: average remuneration of women/average remuneration of men.
2. Other employees includes Senior-level technical staff, Mid-level technical staff. Specialists, Clerical staff and Assistants.

223

CHAPTER 5 Appendix

Average and median compensation for all employees in 2022 and 2021 (€)
2022

2021

Average compensation for all employees (excluding the CEO)45,48841,494

Median compensation for all employees (excluding the CEO)33,64732,490

Average remuneration of directors and executives in 2022 and 2021 by type of remuneration (thousand €)Category

Executive directors
Non-executive directors

Year

Fixed remuneration

2022
2021

Pension plans andfunds

Variable remuneration

Directors’ fees

Other items

Termination benefits

1,440

979

225

3,080

313

0

800

595

182

3

199

233

2022

0

0

311

0

0

0

2021

0

0

296

0

0

0

Gender pay gap
To prevent biases, our remuneration policies set common criteria for determining salaries and seek maximum objectivity in their application. All Cepsa companies have set
up a remuneration register in accordance with the law to evaluate the current gender pay gap.
Considering all of our company’s employees, the gross pay gap is 30.44%. However, this is very generic figure, since pay conditions are different in each of the countries inwhich we have operations. Therefore, we conducted a more in-depth analysis for the countries with the largest headcounts, i.e. Spain and Portugal. The gross pay gaps
calculated for those countries were 30.05% and 21.96%, respectively. Although the overall figure is high, we also calculated the adjusted pay gap, comparing jobs of equalvalue held by people with similar characteristics. By that measure, the pay gaps in Spain and Portugal narrowed significantly, to 4.33% and 2.85%, respectively. The
resulting figures are affected by the pay increases negotiated in 2022 under the scope of the collective bargaining agreements applicable in each business and thedifferent female presence in each. Isolating that phenomenon, the pay gap was flat by comparison with 2021. We continue to implement a range of initiatives designed toeliminate the pay gap in as short a period of time as possible.
Gender pay gap in 2022 and 2021 by employee category (%)
2022

2021

Executives

17 %

26 %

Department heads

7%

9%

Senior-level technical staff

9%9%Mid-level technical staff

18 %

13 %

Clerical staff

11 %

8%

Specialists

29 %

30 %

Assistants

6%

—%

224

CHAPTER 5 Appendix

3.6.6 Social dialogue and labour relations[GRI 2-30] Collective bargaining agreements
Employees covered by collective bargaining agreements in 2022 and 2021 by country (%)
Country

2022

2021

Algeria—%—%

Belgium—%—%Brazil92 %92 %Canada

—%

—%

China

—%

—%

Colombia—%—%

United Arab Emirates

—%

—%

Spain

90 %

92 %

United States

—%

—%

Italy

86 %

83 %

Morocco—%—%Malaysia—%—%

Mexico92 %92 %Netherlands

—%

—%

Peru

—%

—%

Portugal

98 %

98 %

UK

—%

—%

Singapore—%—%

Thailand

—%

—%

Total

87 %

87 %

225

CHAPTER 5 Appendix

3.7 BECOMING A ZERO-ACCIDENT WORKPLACE
3.7.1 Work-related injuries[GRI 403-4] Worker participation, consultation, and communication on occupational health and safety
Occupational health and safety play an important role in shaping employment conditions in collective bargaining agreements, which also include actions to foster aculture of prevention and promotion of healthy habits and environment and prioritise regular monitoring of employee health.
Cepsa has health and safety committees, which are the competent bodies under OHS regulations for worker participation, consultation and communication on
occupational health and safety.
In 2022, we made inroads on actions aimed at managing emotions, in line with the various dimensions of COVID-19-related psychosocial risks to our employees.

[GRI 403-7] Prevention and mitigation of occupational health and safety impacts directly linked by business relationships
The assessment of risks for employees in positions linked by business relationships is conducted in the same way as for all other employees. Key features include:•

From the psychosocial viewpoint, specific psychosocial studies carried out using the Fpsico 3.1 approach on factors that could be related with customer service,entailing questionnaires and interviews.

•

From the health viewpoint, the same general health monitoring procedures implemented at corporate level apply. All other employees are invited to voluntarily
take an overall health test to analyse indicators on the state of their health that could be linked to working conditions.

[GRI 403-8] Workers covered by an occupational health and safety management system
In both 2022 and 2021, all employees and workers who are not employees were covered by an occupational health and safety management system in the company
subject to internal audit. Moreover, in both 2022 and 2021, 98% of employees and 90% of workers who are not employees were covered by an occupational health andsafety management system in the company subject to a third-party audit or certification.

226

CHAPTER 5 Appendix

Workplace accidents
Injury rates of employees and workers who are not employees in 2022 and 2021
Employees
Hours worked (no.)
Lost workday injury (no.)

Workers who are not employees

2022

2021

2022

2021

16,393,493

16,604,936

10,239,959

10,066,957

9

11

18

15

Lost workday injury frequency (LWIF) (1)

0.55

0.66

1.76

1.49

Days lost by lost workday injuries (nº.)

1,030

1,304

662

419

Injury severity rate (2)

62.83

78.53

64.65

41.62

Number of fatalities (no.)

0

0

0

0

Rate of fatalities

0

0

0

0

1. LWIF: Total number of lost workday injuries/Total number of hours worked x 1,000,000
2. Injury severity rate: Total number of days lost/Total number of hours worked x 1,000,000[GRI 2-8] Workers who are not employees
Workers who are not employees (no.)
2022

2021

5,039

5,619

[GRI 403-9] Work-related injuries
The main types of work-related injuries for Cepsa employees are: being trapped, falling on the same level, fire and explosions, falling to a lower level, being struck by anobject and overexertion.
Work-related hazards that pose a risk of high-consequence injury are: falling to a different level, being struck by falling objects, being trapped, contacts with electricity andexposure to toxic and hazardous chemical products. These have been determined based on the experience built up by the company over the years, as well as experience insimilar industries.
Risk assessments of jobs are performed. Employees and service companies are apprised of the risks and the preventive measures related to their jobs and training isprovided before a person can carry out a job. The company also has systems in place to minimise and control these risks, with both operations and maintenance assessing
the risks inherent to the specific task to be performed. In tandem, audits of work permits, inspections and safety walkthroughs are carried out, along with evaluations
taking samples of exposure to pollutant chemicals.
During the reporting period, as in previous years, there were no fatalities of either employees or workers who are not employees.

227

CHAPTER 5 Appendix

High-consequence and recordable work-related injuries of employees in 2022 and 2021
High-consequence work-related injuries
2022

Recordable work-related injuries
2021

2022

2021

NumberRate (1)

NumberRate(1)

Number

TRIR (1)

Number

TRIR (1)

0

0

3

0.18

16

0.98

20

1.20

1. Rate and TRIR = (Number of accidents /total number of hours worked by employees) x 1,000,000

High-consequence and recordable work-related injuries of workers who are not employees in 2022 and 2021
High-consequence work-related injuries
2022

Recordable work-related injuries
2021

2022

2021

NumberRate (1)

NumberRate(1)

Number

TRIR (1)

Number

TRIR (1)

1

0.10

0

0

29

2.83

26

2.58

1. Rate and TRIR = (Number of accidents /total number of hours worked by employees) x 1,000,000[SASB EM-EP-320a.1 / EM-RM-320a.1 / RT-CH-320a.1] Number of near misses and near miss frequency rate (NMFR)
Near misses and near miss frequency rate for work-related near misses in 2022 and 2021
2022

2021

Employees and workers who are not employees

Rate (1)

Employees and workers who are not employees

Rate (1)

678

25.46

1,921

72.02

1. Rate: (Number of near misses/total number of hours worked) x 1,000,000[SASB EM-RM-540a.2] Challenges to Safety Systems indicator rate
Challenges to safety systems indicator rate1 in 2022 and 2021
2022

2021

5.09

14.40

1. Rate: (Total Tier 3 indicator count/total hours worked) x 200,000228

CHAPTER 5 Appendix[GRI 403-10] Work-related ill health
There were no cases of work-related ill health among employees or workers who are not employees in either 2022 or 2021. Accordingly, there were also no fatalities as aresult of work-related ill health of employees or workers who are not employees in 2022 and 2021.
Cepsa enjoys a low rate of work-related ill health, with around 95% of work-related ill health of employees in 2022 having to do with physical injuries and musculoskeletal
disorders. For sub-contractors, roughly 93% of work-related ill health related to physical injuries and musculoskeletal disorders.
The main work-related hazards with the potential to cause injury or ill health are: exposure to noise, exposure to chemical products, overexertion, manual handling ofloads and driving vehicles (accidents going to or from work).
The hazards are determined based on an assessment of each job using models of the Spanish Institute of Occupational Health and Safety (INSST) and the preparation ofincident investigation procedures and plans of action. Measures in place to minimise these risks entail safety training, awareness campaigns, information on each accident-including near misses- and the preventive measures designed to eliminate or minimise risks, as well as systematic review through ongoing inspections of facilities.

229

CHAPTER 5 Appendix

3.7.2 Process incidents
Safety incidents
Tier 1 and 2 process safety events in 2022 and 2021
2022

2021

Tier 1

Tier 2

Total

Tier 1

Tier 2

Total

4

12

16

4

5

9

[SASB EM-EP-540a.1 / SASB EM-RM-540a.1 / SASB RT-CH-540a.1] Process safety event (PSE) rates for loss of primary containment (LOPC)
Process safety event (PSE)(1) rates for loss of primary containment in 2022 and 2021
2022

2021

Tier 1 PSE rate

Tier 2 PSE rate

Tier 1 PSE rate

Tier 2 PSE rate

0.03

0.09

0.03

0.04

1. PSE rate: (Total process safety event (PSE) count/total hours worked) x 200,000.

Process safety total incident rate (PSTIR)(1) in the Chemicals business in 2022 and 2021
PSTIR
Business

2022

2021

Chemicals

0.01

0.01

1. PSTIR: Process Safety Total Incident Rate. PSIC x 200,000 / total annual hours worked by employees, contractors and subcontractors.

[SASB RT-CH-540a.2] Operational safety, emergency preparedness and response
Operational safety, emergency preparedness and response in the Chemicals business in 2022 and 2021
Number of transport incidents
Business

2022

2021

Chemicals

0

2

230

CHAPTER 5 Appendix[EM-RM 540 a.3] Discussion of measurement of Operating Discipline and Management System Performance through Tier 4 Indicators
Tier 4 indicators are proactive indicators used to identify weaknesses in safety management systems to analyse performance and prevent Tier 1 and Tier 2 process safety
events (PSE). Cepsa’s most relevant Tier 4 indicators focus on:•

Updated risk assessments of units.

•

Recommendations arising from risk assessments, investigations of accidents, audits, drills, change management, etc.

•

Delivery of safety and prevention training plans.

•Review of process safety procedures according to the agreed planning.

•

Compliance with planned drills, safety walk-throughs, preventive safety recommendations and order and clean up plans.

•Rate of corrective and preventive actions implemented.

•

Rate of safety inspections: number of preventive safety inspections (PSIs) carried out against the established target.

231

CHAPTER 5 Appendix

3.8 FACILITATING A SUSTAINABLE SUPPLY CHAIN
3.8.1 Description of the supply chain[GRI 2-6] Activities, value chain and other business relationships / [GRI 204-1] Proportion of spending on local suppliersType of suppliers and purchase volume1 in 2022
Suppliers (nº)

Suppliers (%)

Purchase volume (€) (1)Total purchase volume (%)
54 %Segment I (2)762%631,613,768

Segment II (3)

143

4%

243,360,124

21 %Segment III (4)

296

9%

163,598,153

14 %Segment IV (5)

1,214

37 %

122,836,078

10 %Segment V (6)

1,559

47 %

11,239,287

1%. Total3,288

1,172,647,410

1. Purchase volume is calculated before VAT.
2. Segment I: Cepsa's main suppliers considered high impact (strategic) that represent more than 50% of annual procurement spend.
3. Segment II: Cepsa's main suppliers considered high impact (strategic) that represent 20-25% of annual procurement spend.
4. Segment III: Cepsa's main suppliers that, together with those in the previous segments, are considered critical; i.e., those that risk control management focuses on. Segment I, II and III suppliers represent over 85% ofannual procurement spend and approximately 15% of the total number of suppliers.
5. Segment IV: Suppliers of goods and services with low impact that undergo operational, environmental, health and safety, compliance and cybersecurity risk assessments to identify those with a level of ESG risk that
requires assessment and actions.
6. Segment V: Tail spend is outside the scope at requirement level and not subject to assessment or actions. Certain ad-hoc projects are carried out to reduce tail spend. However, monthly risk cards are made of all asset
suppliers registered in the procurement platform.

232

CHAPTER 5 Appendix

Type of suppliers and purchase volume1 in 2021
Suppliers (nº)

Suppliers (%)

Purchase volume (€) (1)Total purchase volume (%)

Segment I (2)662%350,201,329

50 %Segment II (3)

121

4%

146,178,596

21 %Segment III (4)

240

8%

103,556,409

15 %Segment IV (5)

999

35 %

88,251,709

13 %Segment V (6)

1,430

50 %

11,425,006

2%

Total

2,856

699,613,049

1. Purchase volume is calculated before VAT.
2. Segment I: Cepsa's main suppliers considered high impact (strategic) that represent more than 50% of annual procurement spend.
3. Segment II: Cepsa's main suppliers considered high impact (strategic) that represent 20-25% of annual procurement spend.
4. Segment III: Cepsa's main suppliers that, together with those in the previous segments, are considered critical; i.e., those that risk control management focuses on. Segment I, II and III suppliers represent over 85% ofannual procurement spend and approximately 15% of the total number of suppliers.
5. Segment IV: Suppliers of goods and services with low impact that undergo operational, environmental, health and safety, compliance and cybersecurity risk assessments to identify those with a level of ESG risk that
requires assessment and actions.
6. Segment V: Tail spend is outside the scope at requirement level and not subject to assessment or actions. Certain ad-hoc projects are carried out to reduce tail spend. However, monthly risk cards are made of all asset
suppliers registered in the procurement platform.

Breakdown of suppliers in 2022 by geographic location
Geographic location (1)Suppliers (nº)

Suppliers (%)

Purchase volume (€) (2)Total purchase volume (%)

Spain

1,515

46 %

918,575,879

78 %Americas

1,139

35 %

95,905,437

8%

272

8%

22,027,831

2%

1

—%

11,555—%

Europe361

11 %136,126,708

12 %

Total

3,288

Asia and Oceania
Africa1,172,647,410

1. America: Brazil, Canada, Chile, Colombia, the United States, Mexico, Peru and Puerto Rico. Asia and Oceania: China, Hong Kong, India, Malaysia, New Zealand, Singapore and UAE. Africa: South Africa. Europe: EU
countries and Turkey.
2. Purchase volume is calculated before VAT.

233

CHAPTER 5 Appendix

Breakdown of suppliers in 2021 by geographic location
Geographic location (1)Suppliers (nº)

Suppliers (%)

Purchase volume (€) (2)Total purchase volume (%)

Spain

1,327

46 %

552,781,038

79 %Americas

1,043

37 %

76,629,255

11 %

197

7%

13,457,688

2%

Africa1—%

32,676—%

Europe288

10 %56,712,392

8%

Total

2,856

Asia and Oceania

699,613,049

1. America: Brazil, Canada, Chile, Colombia, the United States, Mexico, Peru and Puerto Rico. Asia and Oceania: China, Hong Kong, India, Malaysia, New Zealand, Singapore and UAE. Africa: South Africa. Europe: EU
countries and Turkey.
2. Purchase volume is calculated before VAT.

[GRI 204 -1] Proportion of spending on local suppliers
Spending on local suppliers1 in 2022
Total spent on purchases fromnational suppliers (€)

Total spent on purchases fromsuppliers (national +international) (€)

Percentage of nationalpurchases

Total spent on local purchases(€) (1)

Local purchases (%)

Spain

915,985,794

918,575,879

99.7 %

347,915,048

37.9 %

Colombia

49,044,992

49,044,992

100 %

22,290,134

45.4 %

Brazil19,300,869

19,300,869

100 %

13,051,734

67.6 %—

118,200,042

—%

—

—%

18,856,100

18,856,100

100 %

10,554,050

56.0 %

Portugal

7,558,282

17,926,666

42.2 %

3,171,762

17.7 %

Peru

6,047,697

6,047,697

100 %

873,61414.4 %

Canada7,361,315

7,426,165

99.1 %

6,732,494

90.7 %

Others—17,269,000—%

1,896,952

11.0 %

Total

1,024,155,049

1,172,647,410

87.3 %

406,485,789

34.7 %

Significant locations

Rest of Europe
Chinese

1. Local suppliers: supplier based in the same geographic market as the facilities or plant of the contracting Cepsa company.

234

CHAPTER 5 Appendix

Spending on local suppliers1 in 2021
Total spent on purchases fromnational suppliers (€)

Total spent on purchases fromsuppliers (national +international) (€)

Spain

552,491,415

Colombia

28,436,924

BrazilPercentage of nationalpurchases

Total spent on local purchases(€) (1)

552,781,038

99.9 %

219,637,908

39.7 %

29,984,605

94.8 %

12,701,805

42.4 %

13,764,589

13,764,589

100 %

10,051,101

73.0 %—

47,467,427

—%

—

—%

837,832

870,540

96.2 %

268,27330.8 %

Chinese11,079,932

11,080,596

100 %

10,377,579

93.7 %

Portugal

7,660,204

9,244,965

82.9 %

3,592,927

38.9 %

Peru

10,211,419

11,170,509

91.4 %

1,975,567

17.7 %

Canada6,572,621

7,050,166

93.2 %

5,612,272

79.6 %

Significant locations

Rest of Europe
SEA (Southeast Asia)

Local purchases (%)

Others—

16,198,614

—%

—

—%

Total

631,054,936

699,613,049

90.2 %

264,217,432

37.8 %

1. Local suppliers: supplier based in the same geographic market as the facilities or plant of the contracting Cepsa company.

235

CHAPTER 5 Appendix

3.8.2 Supplier relations[GRI 414-2] Negative social impacts in the supply chain and actions taken
We consider the following to be material adverse impacts:•

Environmental: suppliers with high environmental risk due to their activity that receive a negative performance assessment based on environmental KPIs.

•

Compliance and good governance: suppliers that after an assessment of the counterparty pose higher-than-average risk and those for which defaults have been
detected.

•Social: suppliers with a certain high risk (country, ESG or human rights), with unfavourable performance assessment of ethics and compliance KPIs and thosewith high HSE risk due to their activity or negative assessments in health and safety KPIs.

We did not identify any supplier with a material adverse impact in 2022.

[GRI 414-1] New suppliers that were screened using ESG criteria
New suppliers screened using ESG criteria in 2022 and 2021
2022

2021

Suppliers that began a business relationship with Cepsa for the firsttime (no.)

345

258

Suppliers that began a business relationship with Cepsa for the firsttime and were validated based on ESG criteria (no.) (1)

214

200

New suppliers that were screened using ESG criteria (%)

62 %

78 %

1. Includes segment V which, given its low amount, is not covered by procurement procedures. Of the total 214 suppliers, 132 are from the procurement area. Those that are not are not required to undergo the complete
process.

[GRI 414-2] Negative ESG impacts in the supply chain and actions taken
Detection of negative ESG impacts in the supply chain and corrective actions taken in 2022 and 2021
2022

2021

666

881

Suppliers identified as having significant (actual and potential) (no.)
negative ESG impacts (no.)

00

Suppliers identified as having significant (actual and potential) negative
ESG impacts with which improvements were agreed upon as a resultof assessment (%)—%—%

Suppliers identified as having significant (actual and potential) ESG
impacts with which relationships were terminated as a result ofassessment, and why (%)—%—%

Suppliers assessed for ESG impacts (no.)

236

CHAPTER 5 Appendix

Identification of critical suppliers in 2022
Suppliers (no.)

Amount spent on purchases (%)

Total Tier 1 suppliers

3,288

100 %

Critical Tier 1 suppliers (1)

820

91 %

Critical non-Tier 1 suppliers (2)

769

—%

1. Critical suppliers are defined as segment I, II and III suppliers and certain segment IV suppliers that are high-risk or contingency or conditional suppliers (i.e., for which there are no alternative suppliers).
2. Critical Tier 2 suppliers are subcontractors that perform services within our facilities. Since they are subcontracted, they are not included in the amount spent on purchases.

ESG risks in the supply chain (2022-2020)
Number of suppliers assessed for ESG risks in the last three years
Number of suppliers assessed

Share of total (%)

Number of suppliers identified withhigh ESG risk

Share of total (%)

Tier 1 suppliers

3,157

96 %

0

—%

Critical non-Tier 1 suppliers

769

100 %

0

—%

Percentage of suppliers with comprehensive1 ESG assessment (2022-2020)
Suppliers assessed annually (%)

Suppliers assessed at least every three years (%) (3)

6 %

13 %

Critical (Tier 1 and non-Tier 1) suppliers (2)1. Assessment that includes at least one onsite visit. A total of 160 suppliers were audited in 2022, of which 91 were critical suppliers.
2. No suppliers were identified as having high ESG risk.
3. Excludes those assessed annually.

Sustainable supply chain metrics (2022-2022) and objective for 2022
Results
MetricObjective

Year of objective

2022

2021

2020

Suppliers with ESG score (%) (1)

80 %

2025

62 %

40 %

N/A

Closing of non-conformities (NC)arising from audits that include
ESG criteria (%)

85 %

2023

82 %

83 %

77 %

Performance evaluation of criticalsuppliers considering ESG criteria
(%)

99 %

2023

99 %

100 %

99 %

1. The new approach for ESG was established in 2021. In 2020, a different approach was used to score performance that is not comparable.

237

CHAPTER 5 Appendix

3.9 BEHAVING ETHICALLY AND RESPECTFULLY
3.9.1 Requests for advice and breaches[GRI 2-26] Mechanisms for seeking advice and raising concerns
Requests for advice on ethics and conduct received in 2022 and 2021 by type
Type

2022

2021

Occupational health and safety

12Commitment to human rights

1

2

Harassment and discrimination

0

1

Employment relationship issues

1

2

Inappropriate behaviour

11Anti-money laundering and counter terrorist financing measures

00

Conflicts of interest

3

4

Control, governance and compliance in our operations

02Anti-trust

1

1

Inside information and market manipulation00International trade00

Environmental protection

0

0

160

113

Relationships with governments and public authorities

00

Gifts, hospitality, events and anti-corruption effort

0

1

Use and protection of our assets and properties

1

0

Relationships with partners, suppliers, customers and other stakeholders

Processing of confidential information and personal data

52Intellectual and industrial property and trade secrets

00Media and information transparency

10

Other concerns

2

3

177

134

2022

2021

Total

Requests for advice on ethics and conduct answered in 2022 and 2021
Requests answered during the year (no.)

177

134

Requests answered during the year (%)

100 %

100 %

238

CHAPTER 5 Appendix

Code of Ethics and Conduct breach complaints received in 2022 and 2021 by typeType of complaint

2022

2021

Occupational health and safety

29

51

Commitment to human rights

01Harassment and discrimination

8

12

Employment relationship issues

18

10

Inappropriate behaviour

16

10Anti-money laundering and counter terrorist financing measures

00

Conflicts of interest

1

1

Control, governance and compliance in our operations

01

Anti-trust

00Inside information and market manipulation00International trade00

Environmental protection0

1

Relationships with partners, suppliers, customers and other stakeholders

11

11

Relationships with governments and public authorities

00

Gifts, hospitality, events and anti-corruption effort

02

Use and protection of our assets and properties

18

11

Processing of confidential information and personal data

11Intellectual and industrial property and trade secrets

00Media and information transparency00Other concerns

0

1

102

113

2022

2021

Total

Code of Ethics and Conduct breach complaints addressed in 2022 and 2021
Complaints addressed during the year (no.)

102

113

Complaints addressed during the year (%)

100 %

100 %

239

CHAPTER 5 Appendix

Disciplinary and corrective actions taken as a result of Code of Ethics and Conduct breaches in 2022 and 2021
2022

2021

Dismissal

24

14Suspension of employment and pay

18

25

Written warning

22

28

Communication action

2

9

Training action

0

3

Control measure

0

5

Job transfer

1

1

Unsubstantiated (1)21

20

Other (2)3

1Activation of disciplinary measures

Activation of corrective measures

1. Corrective measures were taken for some unsubstantiated complaints to avoid any breach of the Code of Ethics and Conduct.
2. Others includes measures such as verbal warnings or disqualification from promotion.

240

CHAPTER 5 Appendix

3.9.2 Employee training
Training on ethics and conduct in 2022
Training topic

Group trained

Participants (nº)

Criminal risk prevention

Managers, department heads and staff
covered by collective bargaining
agreement

284

Raise awareness about job-related
criminal risk

Online training and final exam on the
training provided

Supplier Code of Ethics and Conduct

Group suppliers

154

Present the Cepsa Supplier Code of
Ethics and Conduct

Online training on the Cepsa Supplier
Code of Ethics and Conduct

Code of Ethics and Conduct

Cepsa Group

1727

Present the Cepsa Code of Ethics andConduct

Online training and final exam on the
training provided

Manager and department head
onboarding

Cepsa managers and department heads

150

Present the Cepsa Group Code of Ethics
and Conduct and the main complianceprogrammes

Ethics and compliance onboarding for
new managers and department heads

Managers, department heads and staff
International sanctions and trade controls covered by collective bargaining
agreement

876

Raise awareness about trade control
regulations and sanctions in international
tradeClassroom training, available online forthose who could not attend

Managers, department heads and staff
covered by collective bargaining
agreement

600

Raise awareness and discuss risks of data
Classroom training, available online forloss, including regulatory risks, and steps
those who could not attend
to take to protect data

Data protection and usage

Objective of the training

Description of the training241

CHAPTER 5 Appendix

3.9.3 Anti-corruption effort[GRI 205-1] Operations assessed for risks related to corruption
Internal audit projects with an anti-corruption/anti-fraud component (no.)

2022

2021

10

10

Crime prevention model (CPM) controls in place to mitigate corruption risk (no.)

226

189

ICFR system controls in place to mitigate fraud risk (no.)

556

457

Audit projects on non-operated assets (no.)

11

6

Significant investment agreements and contracts assessed for anti-corruption (Know Your Third Party/
KYTP) (no.)

13

17[GRI 205-2] Communication and training about anti-corruption policies and procedures
Employees that anti-corruption policies and procedures were communicated to in 2022, broken down by employee category and region
Rest of Europe
Category

Spain

Total number

AfricaBelgium, Italy, theNetherlands, Portugal andthe United Kingdom
Percentage Total number

Americas

Algeria, Morocco

Percentage Total number

Asia

Brazil, Canada, Colombia, the China, United Arab Emirates,
United States, Mexico andMalaysia, Singapore andPeru
Thailand

Percentage Total number

Percentage Total number

Percentage

Number

Percentage

0

—%

12

100 %

100 %

3

100 %

127

99 %

40

100 %

30

100 %

738

98 %

61 %

126

96 %

41

98 %

2,116

99 %

16

100 %

54

96 %

20

100 %

1,253

99 %

10 %

6

100 %

149

90 %

60

100 %

2,718

46 %

100 %

3

100 %

10

100 %

19

100 %

69

93 %

—%

1

100 %

19

100 %

1

100 %

61

73 %

33 %

71

75 %

399

95 %

174

99 %

7,094

69 %

Management
Committee

12

100 %

0

—%

0

—%

0

—%

Managers

123

99 %

0

—%

0

—%

1

Department
heads

625

100 %

18

100 %

25

69 %

Senior-leveltechnical staff

1,869

100 %

60

100 %

20

Mid-level
technical staff

1,084

99 %

79

100 %

Specialists

2,456

48 %

47

Clerical staff

33

87 %

4

Assistants

40

82 %

0

6,242

69 %

208

Total

Total

242

CHAPTER 5 Appendix

Employees that anti-corruption policies and procedures were communicated to in 2021, broken down by employee category and region
Rest of Europe
Category

AfricaBelgium, Italy, theNetherlands, Portugal andthe United Kingdom

Spain

Americas

Asia

Brazil, Canada, Colombia, the China, United Arab Emirates,
United States, Mexico andMalaysia, Singapore andPeru
Thailand

Algeria, Morocco

Total

Number

Percentage

Number

Percentage

Number

Percentage

Number

Percentage

Number

Percentage

Number

Percentage

Management
Committee

0

—%

0

—%

0

—%

0

—%

0

—%

0

—%

Managers

109

100 %

0

—%

0

—%

2

100 %

0

—%

111

100 %

Department
heads

566

100 %

14

78 %

0

—%

36

86 %

0

—%

616

89 %

Senior-leveltechnical staff

1,722

100 %

46

81 %

0

—%

121

95 %

0

—%

1,889

97 %

Mid-level
technical staff

1,023

100 %

68

88 %

0

—%

58

83 %

0

—%

1,149

94 %

Specialists

2,416

48 %

38

8%

0

—%

119

74 %

0

—%

2,573

45 %

Clerical staff

54

95 %

5

56 %

0

—%

6

55 %

0

—%

65

70 %

Assistants

25

81 %

1

10 %

0

—%

16

94 %

0

—%

42

53 %

5,915

70 %

172

27 %

0

—%

358

83 %

0

—%

6,445

66 %

Total

Employees that received training on anti-corruption policies and procedures in 2022, broken down by employee category and region

Spain

Rest of Europe

AfricaAmericas

Asia

Italy, the Netherlands,
Portugal and the UK

Algeria

Brazil, Canada, Colombia,
Peru

United Arab Emirates andSingapore

Total

Number

Percentage

Number

Percentage

Number

Percentage

Number

Percentage

Number

Percentage

Number

Percentage

Management
Committee

0

—%

0

—%

0

—%

0

—%

0

—%

0

—%

Managers

48

39 %

0

—%

0

—%

0

—%

1

1%

49

38 %

Department
heads

171

27 %

0

—%

11

5%

2

5%

5

7%

189

25 %

Senior-leveltechnical staff

264

14 %

2

3%

7

12 %

16

12 %

1

1%

290

14 %

Mid-level
technical staff

196

18 %

5

6%

5

4%

2

4%

0

—%

208

16 %

1,109

21 %

2

—%

2

1%

2

1%

2

3%

1,117

19 %

3

8%

1

25 %

1

10 %

1

10 %

0

—%

6

8%

Category

Specialists
Clerical staff
Assistants
Total

18

37 %

0

—%

1

—%

0

—%

1

1%

20

24 %

1,809

20 %

10

2%

27

5%

23

5%

10

14 %

1,879

18 %

243

CHAPTER 5 Appendix

Employees that received training on anti-corruption policies and procedures in 2021, broken down by employee category and region
Rest of Europe
Category

Italy, the Netherlands,
Portugal and the UK

Spain

AfricaAmericas

Asia

Algeria

Brazil, Canada, Colombia,
Peru

United Arab Emirates andSingapore

Total

Number

Percentage

Number

Percentage

Number

Percentage

Number

Percentage

Number

Percentage

Number

Percentage

Management
Committee

0

—%

0

—%

0

—%

0

—%

0

—%

0

—%

Managers

0

—%

0

—%

0

—%

0

—%

0

—%

0

—%

Department
heads

142

25 %

10

56 %

1

3%

0

—%

0

—%

153

22 %

Senior-leveltechnical staff

185

11 %

7

12 %

0

—%

0

—%

0

—%

192

10 %

Mid-level
technical staff

87

9%

37

48 %

0

—%

0

—%

0

—%

124

10 %

Specialists

16

—%

2

—%

0

—%

0

—%

0

—%

18

—%

Clerical staff

1

2%

0

—%

0

—%

0

—%

0

—%

1

1%

Assistants

0

—%

0

—%

0

—%

0

—%

0

—%

0

—%

431

5%

56

9%

1

1%

0

—%

0

—%

488

5%

Total

244

CHAPTER 5 Appendix

3.9.4 Human rights in security personnel[GRI 410-1] Security personnel trained in human rights policies or procedures
All security personnel in Brazil, Colombia and Peru, three countries identified as at significant risk of human rights violations, received training on upholding human rights.
Security personnel and workers who are not employees trained in human rights policies and procedures in 2022 and 20211
Security personnel

Total

Employees

Workers who are not employees

2022

2021

2022

2021

2022

2021

Security personnel (no.)

89

553

7

7

82

546

Security personnel who havetraining in the organization’s
human rights policies or
specific procedures and theirapplication to security (no.)

85

64

3

3

82

61

Security personnel who havetraining in the organization’s
human rights policies or
specific procedures and theirapplication to security (%)

96 %

12 %

43 %

43 %

100 %

11 %

1. Data reported are on operated assets in countries where human rights protection is at risk: Brazil, Algeria, Peru, Colombia and Mexico.

245

CHAPTER 5 Appendix

3.10 LOCAL COMMUNITY RELATIONS[GRI 3-3] Management of material topics - local communities
Engagement with stakeholders in the Exploration & Production business:

Local authorities

Regular meetings to keep stakeholders abreast of the company's activities, addressing technical information on projects, economic impact on local communities,
community investment, job creation and training. In 2022, we again took part in the panel discussion on action and development of indigenous people (Puerto Gaitán Colombia) to following up on the agreements reached regarding community investment, job creation and the supply of goods and services. Meanwhile, in Macuya (Peru),
we stepped up our participation in the round table made up of representatives of the national, regional and local government, Cepsa and civil society with the aim ofmonitoring execution of Summer Plan I (upgrades to 12 km of local roads) and addressing the execution of Summer Plan II (a further 18 km of roads).

Local communities

We maintain ongoing contact with local communities. The main actions involving relations with local communications include briefing meetings to discuss thecompany’s activities, meetings to determine and present progress on community investment initiatives and presentations to disclose the opportunities opened up for
local labour and businesses.

Contractors

Meetings to discuss the social context and local hiring and procurement requirements. Promotion of upskilling actions to enhance the competitiveness of local
contractors.

Local business owners

In 2022, an upskilling project was carried out in the areas of administrative, health and safety and the environment for Colombian business owners near our operations.

[GRI 413-2] Operations with significant actual and potential negative impacts on local communities
In the Exploration & Production business, no local communities are close enough for us to cause any measurable direct impacts. Potential negative impacts arising fromour operations are the generation of particulate matter on roads, potential pollution from spills, emissions, the use of natural resources, water discharges and noise.
We control the potential adverse impacts derived from our operations by implementing planned, scheduled and monitored prevention and mitigation actions. Indeed, ouroperations are conducive to generating positive impacts, such as local skilled and unskilled jobs, training, purchases of goods and services, improvements in inter-cityroutes and growth in the region's resources and wealth.
Potential negative impacts of our industrial facilities in Spain include emissions to air, soil quality and use, waste generation, spills, smells and noise.

[GRI 2-25] Processes to remediate negative impacts
All our Exploration & Production operations have an Environmental and Social Impact Assessment (ESIA) approved by the authorities including the required
Environmental and Social Management Plan (ESMP), which describes all the preventive, corrective and compensatory measures companies undertake to implement
before, during and after the end of operations to mitigate potential negative impacts on both the environment and local communities.
Measures featured watering roads to mitigate dust, having strong enough contingency teams in the field to control spills and entering into contracts with third parties todeal with a potentially major operational emergency in a timely manner time and efficiently, as well as performing regular emergency drills to be prepared. We have theappropriate engineering equipment and measures to control emissions and minimise the impact. We also control air quality with legally required monitoring and have yet
to receive any complaints. We have all the pertinent water withdrawal permits in force and endeavour always to minimise withdrawal by designing water withdrawalreduction, reuse and recovery programmes. There are no discharges from any our operations to bodies of water. Lastly, our operations are located far from population
centres, so no resettlements have been necessary.
All these commitments are set out in the operating permit, which is the quintessential binding document.
For grievances in the Exploration & Production business, there is the Procedure for handling queries, requests and complaints (QRCs). QRCs are generally received via
email, letters, communications, in writing, QRC forms, the website, briefing meetings with stakeholders, monitoring committees and any other means of communication
provided to the community. Once a query, receipt or complaint is received, the Social Responsibility team first classifies and assess it, then systematizes it, assigns it a246CHAPTER 5 Appendix

priority classification, forwards it to the pertinent area and tracks it during processing until a solution is reached. Incidences of related impacts on activities are also
analysed to identify the root cause, determine lessons learned and take corrective action to ensure it does not recur.
Some of our remediation commitments at our industrial facilities in Spain, such as Madrevieja or La Laguna, are subject to constant monitoring, safety improvements,
innovation projects, water reduction and reuse and biodiversity actions,
We have a Society Relations Manual for identifying and handling grievances and complaints that sets down the guidelines for managing these incidences. Some channels
used are phone calls, network monitoring, relations with the media and mail.

[GRI 203-1] Infrastructure investments and services supported
Contributions to community work at the operational level in 2022 and 2021 by type
2022

2021

Investment/contribution (€)

Investment/contribution (€)

235,480

574,317

Project execution and development expenditure (1)1. In 2022 and 2021, the entire amount of investment in community work at the operational level went to project execution and development expenditure.

Contributions to community work at the operational level in 2022 and 2021 by area
2022

2021

Investment/contribution (€)

Percentage

Investment/contribution (€)

Percentage

Social support

185,06179 %

552,82196 %Scientific-educational

50,41921 %21,505

4%

Total (1)(2)

235,480

574,326

1. We did not make any contributions to community work at operational level in 2022 and 2021 related to the environment or processing expenditure.
2. Framed under social support actions in Peru and scientific-educational support actions in Colombia

Contributions to community work at the operational level in 2022 and 2021 by country
2022

2021

Investment/contribution (€)

Percentage

Investment/contribution (€)

Percentage

50,41921 %21,5054%Peru

185,06179 %

552,811

96 %

Total

235,480

Colombia574,316247

CHAPTER 5 Appendix[GRI 203-1] Infrastructure investments and services supported and [GRI 203-2] Significant indirect economic impacts
Initiatives in community work at the operational level of the Exploration & Production business
Name of initiative

Country

Description of initiative and associated impact
Institutional and community support as part of compliance with the Llanos 22 block permit. Workshops and skillbuilding on growing aromatic plants to strengthen the social fabric of the town of Vereda la Sevilla.

Socio-environmental workshops and skill building in compliance with
the Llanos 22 Environmental Management Plan (EMP)

Colombia

Socio-environmental workshops and skill building in compliance with
the Caracara EMP

Colombia

Socio-environmental workshops and skill building in compliance withthe oil pipeline EMPColombia

Support of local entrepreneurs to hone their skills in areas such as: occupational health and safety, administrative andcommercial processes, planning and strategic thinking.

Socio-environmental workshops and skill building on the good andeffective use of water resources

Colombia

Socio-environmental workshops with communities to comply with the commitments of the EMP on good water
resource use

Health campaign

Peru

In conjunction with our health officers, we helped the healthcare professionals in the towns within our area of influenceby donating medicine, furniture, medical equipment, computers and office equipment.

School campaign

Peru

Donation of audiovisual equipment (TVs and multimedia projectors) for primary and secondary school classrooms at
Institución Educativa Jaime Tseng in Macuya.

Macuya road upgrade - Summer Plan I

Peru

Through an inter-institutional agreement between Cepsa and the Puerto Inca municipal government, we upgraded 12.2
km of local roads in Macuya as part of an agreement between Puerto Inca and the Peruvian Army. The Peruvian Army
executes the work and Cepsa provides the fuel. Months: January, February, May, June and July 2022.

Macuya road upgrade - Summer Plan II (first step)Peru

In an agreement with the Puerto Inca municipal government, we donated money and fuel to pave 13.9 km of roads in
Macuya. Carried out by the Peruvian Army.

Socio-environmental workshops with communities in line with the commitments of the EMP.

We performed groundwater geological studies for drilling five wells in sectors of the Macuya population centre: Paraíos
Verde, Las Lomas, Macuya Centro, Pueblo Nuevo and Tres de Mayo. Objectives:•
Groundwater geological research

Peru

Record both natural and artificial underground water sources.

•
Determine the foundation's morphology and identify the various horizons comprising the subsoil and theirgeoelectric conditions.
•

Determine the layer’s behaviour.

•

Locate the area with favourable hydrogeological conditions.

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CHAPTER 5 Appendix

Grievances from local communities
Grievances from local communities in Exploration & Production in 2022 and 2021
2022

2021

Grievances (no.)

24

3

Grievances addressed and resolved (no.)

23

3

Grievances addressed and resolved (%)

96 %

100 %

Grievances resolved through remediation (no.)

40

Grievances resolved through remediation (%)

17 %

—%

Grievances from local communities in industrial facilities in Spain in 2022 and 2021
2022

2021

Grievances (no.)

00

Grievances addressed and resolved (no.)

00

Grievances addressed and resolved (%)—%—%

Grievances resolved through remediation (no.)

00

Grievances resolved through remediation (%)

—%

—%

2022

2021

3

3

Community engagement
Consultations with local communities in Exploration & Production assets in 2022 and 2021
Assets in local communities (no.)
Assets in which there was consultation with the local community (no.)

3

3

Assets in which there was consultation with the local community (%)

100 %

100 %

Projects in progress (no.)

88Projects in progress in which there was consultation with thecommunity (no.)

88Projects in progress in which there was consultation with thecommunity (%)

100 %

100 %

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CHAPTER 5 Appendix

3.11 Positive impact on society - Cepsa Foundation
Cepsa Foundation management priorities
Priority

SDG

Company benefit KPIs

Social/environmental benefit KPIs

Inclusion of underprivileged groups to drive thedevelopment of communities where Cepsa hasoperations

10. Reduced inequalities

Stakeholder perception of the company

Number of partnerships spearheaded to promote
public interest projects

Conservation and improvement of natural spaces
near Cepsa's facilities and environmental
awareness-raising and training

13. Climate action

Number of alliances with environmentalorganizations

Number of scientific research projects on therecovery of natural spaces and species ofcommunity interest

Promotion of scientific and university research onenergy and technology to enhance training of young
people in jobs related to Cepsa’s business8. Decent work and economic growth

Related studies and research conducted

Number of participations in training actions backed
by the Cepsa Foundation[GRI 203-1] Infrastructure investments and services supported
Contributions by the Foundation to community work by type in 2022 and 2021
2022

2021

Investment/contribution (€)

Percentage

Investment/contribution (€)

Percentage

Financial aid

2,851,738

67 %

2,665,011

68 %Project execution and development
expenditure982,366

23 %

910,284

23 %

391,5039%

331,783

8%

Processing expenditure
Total

4,225,607

3,907,078

Contributions by the Foundation to community work in 2022 and 2021 by reason
2022

2021

Investment/contribution (€)

Percentage

Investment/contribution (€)

One-off contribution

2,035,023

48 %2,093,075

54 %Community investment

2,190,584

52 %1,814,003

46 %

—

—%

—

—%

Initiative aligned with the business
Total

4,225,607

Percentage

3,907,078

250

CHAPTER 5 Appendix

Contributions by the Foundation to community work in 2022 and 2021 by area
2022

2021

Investment/contribution (€)

Percentage

Investment/contribution (€)

Percentage

Social support

1,808,750

43 %

2,137,873

55 %Environmental

1,182,178

28 %671,578

17 %Scientific-educational

843,17620 %

765,84520 %

391,5039%

331,782

8%

Processing expenditure
Total

4,225,607

3,907,078

Contributions by the Foundation to community work in 2022 and 2021 by country
2022

2021

Investment/contribution (€)

Percentage

Investment/contribution (€)

Brazil

——%57,515

1%

Canada

—

—%

3,900

—%

Colombia

Percentage

568,712

13 %

728,745

19 %

Spain

3,374,120

80 %

2,868,882

73 %

Peru

176,559

4%

121,1713%

Portugal

86,2162%

100,065

3%

Algeria

20,000—%26,8001%

Total

4,225,607

3,907,078

251

CHAPTER 5 Appendix[GRI 203-1] Infrastructure investments and services supported and [GRI 203-2] Significant indirect economic impacts
Social support initiatives
Name of initiative

Country

Description of initiative and associated impact

Cepsa Foundation with Ukraine

UkraineCepsa Foundation supports victims of the war in Ukraine through cooperation with two social enterprises in Ukraine andneighbouring countries: Educo (providing aid to families with young children and teenagers who are refugees in shelters)and UNHCR Spain (providing aid to vulnerable people still in Ukraine and meeting the most urgent needs of those who
fled to neighbouring countries). Thanks to promotion by Cepsa Foundation, Cepsa employees donated over €10,000 to
Ukrainian refugees through UNHCR Spain, Educo and CESAL

Energy efficiency volunteering

Spain

Remote volunteering to provide a series of recommendations and an estimation of the resulting savings The
participating families also receive personalised energy efficiency kits.

Water wells

Peru

We spearheaded groundwater geological research in five Macuya villages to come up with alternatives or solutions towater withdrawal for human consumption and, where this is the right solution, build wells to improve access and water
quality for 1,000 families in the area.

Country

Description of initiative and associated impact

Sustainability conferenceSpain

We hosted the 'Biodiversity, key to sustainability in Andalusia' technical conference in La Línea de la Concepción (Cádiz).
Cepsa, the Cepsa Foundation, the Andalusian Regional Government and the International Union for Conservation of
Nature all took part. The aim was to share environmental conditions and projects entailing research, maintenance andpublic use of protected natural enclaves carried out in the Huelva province so that they could possibly be replicated inareas, such as Arroyo Negro (Cádiz).

Plant-for-the-Planet

Spain

In 2022, we reinforced the reforestation projects undertaken in previous years with the assistance of a number of
initiatives, including Plant-for-the-Planet, which we helped with its reforestation efforts in the area affected by the Las
Peñuelas forest fire in 2017 in Doñana Natural Park and its environs.

Name of initiative

Country

Description of initiative and associated impact

Second edition of the ProFormación vocational training scholarshipprogramme

Spain

In the wake of the warm reception of the first edition of the ProFormación scholarships in 2021 for vocational training
students in Cadiz, Huelva, Madrid and the Canary Islands, in 2022, we launched a second edition, raising the number ofscholarships from 60 to 76 with a €190,000 budget and adding Las Palmas (Canary Islands). The number of applications
increased by 16%.

Training in digital transformation skills – CDX

Spain

We promoted Cepsa Digital eXperience's Digital Trekking programme on the digital transformation aimed at
professionals, freelancers and students offering two paths on new technologies and working methods related todigitalisation. We held the programme’s second edition in Huelva in 2022 after its kick-off in 2021 in Campo de Gibraltar.

Chicas con energía

Spain

In conjunction with Inspiring Girls, we undertook efforts to show different STEM-related career opportunities for girls.
Daughters of Cepsa employee’s aged 10 to 17 were given the opportunity to talk to leading women in STEM fields in 10minute group talks.

Let's Connect I+I

Spain

Series of conferences at which leaders in innovation explained to the academic community the criteria they use when
deciding whether or not to support an RD&I project and researchers shared the challenges they face in transferring theirscientific knowledge to the business world.

Environmental initiatives
Name of initiative

Scientific-educational initiatives

On a more cross-cutting level, a highlight was the rollout of the Just Transition Observatory. We conducted our first study of perception among citizens in Andalusia(Spain) and local stakeholders about green or energy transition processes. In a bid to drive this transition, we aim to prevent potential conflicts and provide
recommendations for articulating the development plants of the various agents involved in this green transition. We are currently working on a nationwide study.
[Additional information on all the initiatives of the Cepsa Foundation]

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3.12 Our customers
Grievance management
Our customer care service caters to all customer demands, identifying their needs and recording them in our management systems.
Complaints are managed following our specific customer care and experience procedure.
Our customers can also submit their complaints through a number of other customer service channels (e.g. email, the website, our social media handles, our chat tool,
telephone). Our claims management system monitors response and resolution times.

[GRI 2-29] Requests and grievances received
Requests and grievances received and answered in 2022 and 2021
Received during the year
Requests received

Answered during the year

2022

2021

2022

2021
533,444581,016

536,915576,201

Grievances unsubstantiated

221

249

221

249

Grievances substantiated

374

643

374

643

1. The above information corresponds to the New Commerce & Mobility and Commercial & Clean Energies businesses.

Grievances filed in 2022 and 2021
Grievances filed

2022

2021

1

1

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CHAPTER 5 Appendix

APPENDIX 4. DETAILED INFORMATION ABOUT THE COMPANY’S KEY RISKS
The company classifies the universe of risks to which it is exposed into four major categories: strategic risks, financial risks, operational risks and compliance risks. The
following risks, both separately and combined with other risks, could have a material adverse impact on the delivery of our strategy, our business and our operating
results.
Strategic risks
Strategic risks are related with the general business environment and include political, economic, socio-cultural and technological factors, as well as those related with the company's positioning and strategic planning.
Risks

Description and control measures

Geopolitical and economic risk

As a global firm, we are exposed to geopolitical tensions arising in our operating markets and the resulting changes to the social, economic and operating environment. This could
result in, for example, regulatory changes, higher taxes, international trade wars, production caps or restrictions on operations. We manage this risk by constantly monitoring thesituation in the countries where we operate and reviewing certain potential sources of risk, including security, political uncertainty, the efficiency and effectiveness of governments
and the legal, tax and regulatory landscape.
The most important development of 2022 was the Russia-Ukraine crisis, which triggered trade restrictions, international sanctions, commodity price inflation and global
macroeconomic turbulence. We set up specific taskforces to assess, control and mitigate the effects of this event.

Market demand and competition risk

We offer our products and services in highly competitive markets, where differentiation poses a considerable challenge. Changes in market conditions and the arrival of newmarket entrants could have an impact on our margins and market share. The mere need to speed up the transition process means we must diversify and face rapidly evolving
competitors who are entering markets for sustainable products.
Demand for energy is shifting in line with changes in the economic landscape, regulatory pressure, efficiency-driven technological developments and changes in consumer
preferences, and this could affect our business volumes. Levers to address these risks include our quest for customer service excellence, ongoing monitoring of market trends
and continuous improvement as one of our core values.

Energy transition and sustainability:
technology, regulation and climatechange risk

We have aligned our strategy and operations to regulatory requirements and stakeholder expectations regarding climate change and the energy transition. Abrupt market
changes, stricter regulations, technological challenges and developments or changes in the pace of transition could have adverse impacts on certain elements of our strategic
approach.
We are able to remain at the forefront of the transition by adapting to technological developments, closely monitoring and tracking recent and emerging trends and regulations in
Spain, as well as elsewhere in Europe or the rest of the world, regarding sustainability, fuel quality and the promotion of renewable energies.
In 2022, we updated our identification of risks and opportunities derived from climate change in accordance with the TCFD (Task Force on Climate-Related Financial Disclosures)taxonomy. In the fourth quarter, we identified and assessed risks and opportunities taking into consideration three different climate-related scenarios and we calculated thefinancial impact over three different time horizons, to 2030, 2040 and 2050, in order to evaluate the resilience of our strategy to climate change.

Financial Risks
Financial risks are derived from fluctuations in commodity prices and other financial variables, such as interest or foreign exchange rates, as well as risks related with financial and tax management.
Risks

Description and control measures

Commodity price risk

We are a diversified company with operations along the energy value chain. As such, we are exposed to fluctuations in commodity prices, such as oil, gas, CO2, electricity and theprices of commodity by-products. Despite our diversification, commodity market fluctuations, potential interventions or supply disruptions can lead to unexpected deviations in
the assumptions used in our planning. Note that potential corrections in certain commodity prices can actually have a positive impact.
Commodity markets, especially the oil and gas markets, tightened in 2022 as Russian imports fell because of the Russia-Ukraine conflict, triggering considerable price volatility
and distorting trade volumes.
Price fluctuations, volatilities and liquidity in these markets are tracked constantly and managed using hedging strategies. Initiatives are also drawn up to streamline production
processes and boost efficiency, thereby reducing energy dependence. This enables us to maximise margins during bouts of extreme volatility in energy markets.

Foreign currency risk

Our operations are generally sensitive to changes in the euro’s exchange rate against the US dollar, as most crude and oil and petrochemical products are quoted in US dollars.
Therefore, foreign exchange rate volatility poses a source of uncertainty that requires monitoring due to its potential implications for costs and revenues.
We manage the currency risk in purchase and sale transactions centrally and by entering into currency hedges to hedge the overall net position of US dollar cash flows of thevarious group companies. We also hedge the currency risk of our investments in foreign operations by holding borrowings in the foreign currency in which the cash flows of eachsubsidiary are denominated.

Interest rate risk

We are exposed to changes in interest rates due to the potential impact on interest income and expenses on floating rate loans and borrowings and on the return on investments
due to the impact on discounted cash flows.
We keep a certain percentage of our financing at fixed rates or enter into interest rate hedges where considered appropriate to manage and mitigate this risk.

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Financial Risks
Financial risks are derived from fluctuations in commodity prices and other financial variables, such as interest or foreign exchange rates, as well as risks related with financial and tax management.
Risks

Description and control measures

Liquidity risk

Liquidity risk refers to the company's ability to meet all its payment obligations, whether operational/recurring or projected/related with projects or investments, and any
payments arising from debt maturities, as well as to cope with any situations of financial market stress or stress in the company’s own business areas or geographical markets.
We pursue a conservative financing policy to mitigate liquidity risk, holding considerable amounts of available cash and cash equivalents and undrawn credit facilities to meet
future payment obligations over a period of a least 24 months in a cash neutral scenario. We only use highly-rated and renowned Spanish and international banks ascounterparties and assess the counterparty risk of all the institutions with which we do business, especially when arranging investments and financial instruments.

Credit risk

We are exposed to credit risk arising from the risk that a counterparty (e.g. supplier, customer, partner, financial institution) will not meet its business or financial obligations. The
current economic environment of widespread energy price inflation is squeezing margins and eroding customer solvency, increasing the probability of default.
To manage credit risk, we have a sound credit-assessment process based on comprehensive and automated processing of internal and external business and financial data. With
that data, we use scoring models and assessments by risk analysts to classify counterparties based on their credit risk, setting limits for each and reviewing these limits
regularly. We also take out credit insurance policies to cover most of our commercial counterparty risk.
Regarding credit risk from financial investments, derivatives and liquid assets, the vast majority of our counterparties are financial institutions and insurance companies with highcredit ratings. Nevertheless, we also assess each counterparty’s creditworthiness and assign it a credit limit.

Tax strategy and management risk

There is a specific tax regime for the energy sector. Taxes on profits, production and product consumption are commonplace in both the upstream and downstream sectors. Thatregime exposes us to the risk of changes in the tax regulations applicable in the countries where we have operations and different interpretations of the regulations by thetaxation authorities.
The main purpose of the company's tax strategy is to comply with applicable tax legislation where it operates and ensure that all Cepsa companies do the same.

Operational risks
Operational risks are associated with value chain management, operational effectiveness and efficiency, resource and people management, personal and facility safety and respect for the environment.
Risks

Description and control measures

Process, employee andenvironmental safety risk

Our activities inherently expose us to operational risks such as incidents or accidents affecting assets or, in a worst-case scenario, damage to third parties or the environment.
We have undertaken several initiatives to manage this risk:• Having a safety management system based on OHSAS 18001:2007 that is ISO 14,001 certified and covers safety at all levels in the organisation• Running our industrial plants in such a way as to ensure the integrity of our operations, putting in place hazard control and risk mitigation measures to minimise theconsequences of potential major accidents and providing the highest level of protection and safety to the people who work at Cepsa, as well as the assets, processes andenvironments and populations around our facilities, as articulated in the HSEQ Policy• Renewing integrated environmental authorisations at all our plants in Spain to ensure compliance with principles of prevention and control over all processes to minimise
environmental impacts• Implementing a company-wide safety culture action plan and drawing up a strategic safety standard maintenance and improvement plan

Data security risk

Our business processes rely heavily on digital systems in both the information technology (IT) and the operational technology (OT) spheres. Therefore, a potential cyber attack on
systems supporting critical and business processes could end up interrupting operations, affecting the related business units or resulting in a loss of information that is valuable
to the company, sensitive or confidential.
We manage this risk through the following:
1. The cybersecurity function, articulated around international standards and best practice
2. Cybersecurity governance, consisting ofa. Management using scorecards, with regular reporting to the Management Committeb. Fostering a cybersecurity culture in the company through training and awareness initiatives, including compulsory training on cybersecurity and drills simulating realmultichannel attackc. Body of OT information systems and cybersecurity regulations, under the umbrella of the Cybersecurity Policy, articulated through their relevant standards and procedures andspecific procedured. Third-party cybersecurity risk managemen
3. Secure architecture implemented in both IT and OT environments: reinforcement of access controls with two-factor authentication and VPN connection device authentication
4. System hardening: eliminating obsolete protocols / updating patche
5. Cybersecurity insurance, with ample coverage for the risk scenarios identifie
6. Cyber resilience: procedure for cybersecurity incident response and escalation to the highest corporate crisis management body (4C). We also have an ISO 20,000-certified
continuous improvement process related to Cepsa’s technology contingency plan

Water management risk

Water is a scarce resource that is essential for our industrial operations so we must adapt water management to climate change. Protecting the environment is one of our core
corporate values and we strive to minimise the environmental impact of our operations. Our sustainability pledge has led to the start-up of water recovery and withdrawal
projects and initiatives to promote more rational use of water. We particularly monitor the amount and quality of water needed for our production activities.

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Operational risks
Operational risks are associated with value chain management, operational effectiveness and efficiency, resource and people management, personal and facility safety and respect for the environment.
Risks

Description and control measures

Talent and culture management risk

We need a new business culture with more participative processes to address the challenges posed by the energy transition and digital transformation. More importantly, weneed a new type of leadership, a new way of managing talent and we must identify and develop new skills. We are in the midst of our strategy to tackle the challenges thrown up
by the energy sector’s transition. Therefore, we could be affected if we are unable to attract and retain the right talent or if our organisational models and corporate culture are
not aligned or in sync with this transition.
So that our culture and strategic transformation can evolve in tandem, we are rolling out a transformation programme based on effective communication and active and inclusive
leadership.

Project execution risk

Framed by the transition to a sustainable model, our Positive Motion strategy entails executing myriad ambitious projects to transform our production activity.
A shortage of resources to execute these projects, which has become increasingly possible because of the Russia-Ukraine conflict, inflation-induced cost overruns and otherfactors (e.g., delays in securing permits and licences, changes in technical, tax, regulatory and political conditions) could have an adverse impact on project execution and,accordingly, our financial performance and the delivery of our strategy.
We manage this risk through in-depth planning and ongoing control of all project costs and deadlines.

Supply risk

Shortages in global supply chains and of cargo ships and containers are putting pressure on the commodity and components markets, which could undermine product availability
and cause prices to rise.
Actions taken to minimise supply risk include identifying critical supplies and spare parts, maintaining open communication with existing suppliers to ensure we can procure themand entering into contracts to limit delivery risk and international shipping costs.

Compliance Risks
Compliance risks are related with governance and compliance with legal and other commitments assumed and with management of the company’s legal affairs.
Risks

Description and control measures

Regulatory compliance risk

Sensitive or confidential data leakage or any breach of laws or regulations could have an adverse impact on our reputation and result in penalties or claims for compensation.
We have an effective compliance management system in place to address this risk and minimise its impacts.

Ethical misconduct risk

Ethical misconduct or breach of rules and regulations exposes us to criminal or administrative proceedings that could have an adverse effect on our reputation, operations,financial performance and stakeholder value. As we operate internationally, we are also subject to anti-corruption and anti-bribery laws in many different jurisdictions.
We manage this risk with:
Our Code of Ethics and Conduct, which sets out the core principles, rules and the ethical conduct applicable to our people.
An ISO 37,001 and UNE 19,601 certified criminal and anti-bribery compliance system.

Compliance risks associated witheconomic and trade sanctions
imposed by the United States, theEuropean Union or other jurisdictions

Non-compliance with international sanctions, which increased considerably in 2022 due to geopolitical tension, could have severe financial impacts for the company, particularly
a potential disruption in funding sources or breach of other covenants with banks.
We have a third-party due diligence procedure in place to manage this risk based on the Control Policy on Sanctions and Embargoes in Trade Relations, Exports and Dual-Use
Goods approved by the Board of Directors. Due diligence is performed centrally by the Ethics and Compliance Office, with the assistance of an external consultant depending on
the risk levels identified in the counterparties and transactions.

Litigation and arbitration risk

We manage administrative, judicial and arbitration proceedings in relation with claims arising in the ordinary course of business. We cannot predict the scope and final outcome
reliably, irrespective of the amount of each case. Based on current information, management considers that these risks are reasonably covered by the amount of provisions
recognised.

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APPENDIX 5. INTERNAL CONTROL SYSTEM
Our internal control system is based on international best practices, most importantly the methodologies established by COSO, the International Standard on Assurance
Engagements (ISAE 3000), the international standard on compliance management systems (ISO 19600) and the international standard on anti-bribery management
systems (ISO 37001).
The control models that are audited and certified by the Audit, Compliance and Risk Department annually are:•

Internal control over financial reporting system (ICFR)•Internal control over non-financial reporting system (ICNFR)•

Crime prevention odel (CPM)•

Anti-bribery and anti-corruption model

The internal control system is based on combined assurance articulated around the Institute of Internal Auditor’s Three Lines Model, which was updated in 2020, toprovide an end-to-end vision of how the various parts of the organisation effectively interact and coordinate so as to render its management and relevant risk control
processes more effective. The design and effectiveness of the internal control model is assessed annually prior to certification.
In 2022, Cepsa updated its internal control system to align it with the changes made within the organisation. In parallel, further improvements were made to the system,
broadening its scope in the Exploration & Production, Energy Parks and Commercial and Clean Energies businesses. On the non-financial reporting front, the company did
Taxonomy-related work, specifically working on a control system designed to ensure that the information reported in the integrated report presents a true and fair view.

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Key aspects of the internal control system

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CHAPTER 5 Appendix

Supervision of the internal control system takes place at different levels of the organisation:

Board of Directors
The Board approves the company's general policies and strategies and oversees its risk management and internal reporting and control systems. It is ultimately
responsible for ensuring an internal control system that is conducive to generating reliable, complete and timely financial and non-financial information and laying thefoundations for any other compliance programme needed. Functionally, it delegates execution of its duty of overseeing the organisation’s internal control systems in its
Audit, Compliance, Ethics and Risk Committee.

Audit, Compliance, Ethics and Risk Committee
The Committee’s duties include overseeing effectiveness of the internal control system and counselling the Board of Directors on all matters related with the risk
management, internal control, compliance and internal audit systems.

Management: first line roles
The Board of Directors and management team, ultimately responsible for internal control, set the tone from the top by means of the Code of Ethics and Compliance, itsemanating polices and certain aspects of the control environment, including the organisational structure, segregation of duties and delegation of authority, needed toestablish an appropriate control framework. As a result, our first line professionals are directly responsible for managing the organisation's risks and controls and for
implementing and maintaining a consistently effective internal control system.

Management: second line roles
Professionals in second line of defence roles are mainly tasked with supervising the risks, controls and compliance matters stipulated by the Board of Directors,
suggesting guidelines and improvements and controlling execution by the first line.
The main second line assurance functions at our company, each within his or her respective area of responsibility, are:•

The Corporate Risk Unit under the umbrella of the integrated risk control and management system, along with the risk functions at the business level.

•

The Compliance and Internal Control Units, which are responsible for proactively ensuring that the internal control system (ICFR, ICNFR and CPM) is working
effectively and as intended.

•

The Cybersecurity Unit, which supervises, monitors and reports on IT- and cybersecurity-related risks.

•

The Health, Safety, Environment and Quality (HSEQ) Department, which supervises, monitors and reports on risks related with the safety of our industrial
facilities and environmental risks.

Third line: internal audit
The internal audit function, in its third line role, proactively ensures that the internal control system is working properly. It carries out its duties in line with theInternational Standards for the Professional Practice of Internal Auditing and boasts international Quality Assessment (QA) from the International Audit Institute. To
ensure that the standards set internally are upheld, the Internal Audit Department has implemented a specific quality assurance function that carries out audits to review
the quality of the internal audits conducted annually.
To guarantee independence, the Internal Audit, Compliance and Risk Department reports functionally to the Audit, Compliance, Ethics and Risk Committee andhierarchically to the Chief Legal & Assurance Officer.
The annual internal audit plan is drawn up taking a risk-based approach designed to help deliver our objectives, in response to the demands of the Audit, Compliance,
Ethics and Risk Committee and ad-hoc requests made by management.

259

CHAPTER 5 Appendix

The internal control system is reviewed annually in coordination with the statutory external auditor and the external Crime Prevention Model auditor, checking thesystem’s critical controls to verify they are working correctly prior to certification.

External assurance providers
In addition, external auditors and regulators independently verify that Cepsa is compliant with its requirements and performing the controls put in place to ensure thecorrect functioning of the corporate governance and risk management and control systems.

260

CHAPTER 5 Appendix

APPENDIX 6. ADDITIONAL FINANCIAL INFORMATION
Appendix 6.1 Profits
Country-by-country profits (€ thousand)Country

2022

2021

Spain

266,540

179,000

Algeria

235,091

108,498

Belgium

1,589

1,220

Brazil

62,33854,758Canada27,396

31,767

China

-721

15,297

Colombia

90,556112,194

United Arab Emirates

282,786

34,389

USA

-43

-163

Indonesia

53,471

24,737

Italy

9,249

3,713

Mexico-3,642-2,734

Morocco

1,949

5,339

Malaysia

0-151

Nigeria

18,025

5,845

Netherlands

2,859

1,476

Peru

13,56014,613

Portugal

19,72922,613

UK

13,925

11,894Singapore

19,37032,823Suriname-25,927-3,049Thailand

6,822

4,423

Luxembourg
Total

4,739

2,687

1,099,661

661,187261

CHAPTER 5 Appendix

Appendix 6.2 Value generated and distributed[GRI 201-1] Direct economic value generated and distributed
Direct economic value generated (€ million)
Direct economic value generated

2022

2021

Revenue (including excise duty)

33,877

24,532Other operating income

91

48

Finance income

407

204

Share of profit of associates

103

51

Proceeds from disposals of assets

22

35

34,50024,870

Direct economic value distributed

2022

2021

Economic relationships with suppliers (including purchases of crude oil,raw materials and energy products)

28,221

20,207

727

639

578

514

Total

Direct economic value distributed (€ million)

Payments to capital providers
Shareholders
Financiers
Total taxes paid by Cepsa1
Total employee salaries and compensation
Investment in social programmes and initiatives
Total

149

125

3,634

2,819

836

615

0

0

33,41824,280

2022

2021

1,082

590

1. Includes excise duty, income tax and other taxes.

Direct economic value retained (€ million)
Direct economic value retained262

CHAPTER 5 Appendix

Appendix 6.3 Additional activity metrics
CHEMICALS[SASB RT-CH-000.a1] Production by reportable segment
Production in 2022 and 2021 (thousand tonnes)
Segment
LAB - Puente Mayorga

2022

2021

242,085

209,269LABSA - Mayorga Bridge

33,99835,688

Paraffin - Puente Mayorga

347,837

382,489

LAB - Bécancour

135,848

151,738

LAB - Deten

196,843

210,594LABSA - Stop

81,474

79,830Phenol - Palos de la Frontera

305,476

527,765

Acetone - Palos de la Frontera

190,591

330,237

Cumene - Palos de la Frontera

591,992

763,503AM - Palos de la Frontera

11,002

17,362

Phenol - Shanghai

297,832

299,906

Acetone - Shanghai

186,581

188,172

Cumene - Shanghai

411,647

421,745

Solvents - Puente Mayorga

165,595

129,320[SASB RT-CH-410a.1] Revenue from products designed for use-phase resource efficiency
Revenue from products designed for use-phase resource efficiency in 2022 and 2021 (€)
Facilities

2022

2021

Cepsa Chemical Shanghai

870,020

639,583

Cepsa Chimie Bécancoour, INC.

286,780

200,426

Cepsa Italy
Cepsa Chemical Products

98,22465,2032,567,020

2,162,871

Cepsa UK

129,004

133,093

Detén Química

470,553

301,848

Total revenue

4,421,601

3,503,024

263

CHAPTER 5 Appendix

Exploration & Production
Oil and gas production
Net production volume1 in 2022 and forecast production volume for FY 2025 (MMBOE)
Production volume
Type of fuel2022

2025 forecast

Fossil24.6

27.7

Natural gas (2)1

0.5

Total hydrocarbon reserves

25

28.2

1. We do not have any hydrocarbon production or revenue from oil sands (including extra-heavy bitumen and synthetic crude), from shale oil and gas (developed using hydraulic fracturing) or from ultra-deep water or
Arctic drilling.
2. Conversion rate: 1boe = 6,000 scf

Oil and gas reserves
Net estimated hydrocarbon reserves (MMBOE)
Type of fuelFossilNatural gas (2)Total hydrocarbon reserves

Proved reserves (1P)

Proved + probable reserves (2P)

252.7

360.5

2.5

3.2

255.2

363.6

1. We do not have any reserves from oil sands (including extra-heavy bitumen and synthetic crude) or from shale oil and gas (developed using hydraulic fracturing).
2. Conversion rate: 1boe = 6,000 scf

264

CHAPTER 5 Appendix

Appendix 6.4 Glosary
Alternative Performance measure

Unit

Relevance of use

EBITDA

Millions €Measure of operational profitability deducting the interests, taxes, provisions and amortizations.

Current cost of Supplies (CCS)

Millions €The Current Cost of Supply (CCS) is commonly used in this industry to disclose the Downstream businesses which must work with huge inventories
subject to continual price fluctuations.

Non-recurring items

Millions €It allows the results disclosure excluding those atypical expenses/income not directly related to the activity (non-recurring).

Net debt

Millions €It measures the company’s level of debt.

Capital employed

Millions €It measures own and external capital invested in the company.

Leverage ratio%

It measures the Group's indebtedness proportion in relation to its profitability, usually with its operating profitability.

Free cash flow

Millions €It is used for evaluating the funds available for paying dividends, and debt service payments.

Net operating profit

Millions €Used for ROACE´s calculation

ROACE

%

Measure used to evaluate the earning capacity of the investments in operation.

Gearing%

Measure of the weighing of the external resources in the Group financing.

265

CHAPTER 5 Appendix

APPENDIX 7. COUNTRY-BY-COUNTRY REPORTING OF TAXES[GRI 207-4] Presentación de informes país por paísCountry-by-country reporting 2021
Revenues fromthird-party sales(€)

Revenues fromintragrouptransactions (€)

Total revenues(€)

Profit/(loss)
before tax (€)

Income tax paid
(on a cash
basis) (€)

Spain

20,008,564,453

25,819,959,998

45,828,524,451

454,992,856(42,098,098)(30,959,948)

3,352,948,254

3,576,839,354

6,627,703,681

Algeria

128,303,725

306,328,852

434,632,577

246,337,283(65,512,836)(140,080,917)——

355,328,022

Company

Tax jurisdiction

Spain
Algeria
Belgium

BelgiumBrazilBrazilCanadaCanada147,162,613

China

China

487,653,944

Colombia

Colombia

142,737,377

Italy

Italy

Luxembourg

Luxembourg

Malaysia

Malaysia

MexicoMoroccoIncome tax Declared capital
accrued.
(€)
Current year (€)

Retainedearnings (€)

Tangible assets
other than cash
and cashequivalents (€)

63

3,230,860

3,293,502

1,649,251

(239)

(429)

65

1,345,875

5

296,143,660

17,751,401

313,895,061

65,006,364(5,415,403)(5,411,727)

159,328,096

139,631,206

96,986,765

68,673,596

215,836,209

43,582,142(10,497,054)(11,815,287)

1,152,428

68,051,738

77,155,088

163,013,789

650,667,733

1,171,473—

2,434,791

267,813,580(96,839,443)

418,229,958

1,892,991

144,630,368

81,600,969(1,963,844)

41

—

—

95,217,225

64,345,849

1,788,341

66,134,190

5,036,045(1,253,914)(1,302,037)

6,024,800

10,278,423

6,706,307

3,051,595—

3,051,595

4,326,357

(38)

(488)

2,725,000

41,385,354

—

328

—

328

(210)

(119)

—

4,925,883

2,204,856

338

Mexico146,402,263—

146,402,263(1,290,641)

(340)

—

16,173,402(8,358,461)

9,056,179

Morocco21,050,276—

21,050,276

2,815,419

(92)

(349)

48,778,052

5,315,158

2,472,745

Netherlands

Netherlands

14,022,182

3,035,824

17,058,006

2,198,609

(928)

(509)

184,460,311(78,008,790)

65

Peru

Peru

37,712,728—

37,712,728

19,389,647(6,946,870)(4,827,108)

95,168,877(46,165,307)

23,859,361

PortugalPortugal

904,603,594

248,487,734

1,153,091,328

32,975,091(3,734,606)(10,176,616)

53,547,051

37,546,795

158,284,611

Singapore

Singapore

1,944,586,431

21,583,066

1,966,169,497

11,828,629

(436)

(920)

186,319,115(237,830,332)

178,415,891

Suriname

Suriname

1,504,928

35

1,540,114

(587)

—

(2,462,214)

—

—

—

ThailandThailand

7

1,234,292

1,240,999(3,242,332)

8,947,652

4,357,408

3,878,374(31,234,229)

97

United ArabEmirates

United ArabEmirates

22,674,841

626,668,981

649,343,822

447,230,142(239,223,661)(431,292,183)

475

1,299,343

1,595,600,802

UKUK

133,193,123

786

133,979,173

15,121,592(1,356,153)(2,873,894)

3,337,490

21,364,938

10,637,601

USA

USA

—

—

—

(163)

(845)

(848)

8

(281)

—

266

CHAPTER 5 Appendix

Country-by-country reporting 2020

CompanyTaxjurisdiction

from
Revenues from Revenues
intragroup Total revenues
third-party
transactions(€)
sales (€)(€)

Income tax
Profit/(loss)a cashbefore tax (€) paid (onbasis) (€)

Income tax
accrued.
Current year(€)

Declaredcapital (€)

Retainedearnings (€)

Number of
employees(no.)

Tangible
assets otherthan cash andcash
equivalents (€)

Spain

Spain

14,040,168,148

15,381,055,564

29,421,223,712(1,183,026,828)(1,046,549)

228,163,986

3,394,823,252

3,514,622,089

8,299

5,173,337,016

Algeria

Algeria

114,517,772

233,817,269

348,335,041(4,979,798)(153,636,729)(77,077,023)

—

—

130

303,955,909

Belgium

Belgium

03,280,202

3,280,202

178,701(320,000)(60,283)

6,500

125,952

949,443

BrazilBrazil221,587,475

6,156,952

227,744,427

62,985,616(2,208,341)(2,350,081)

162,845,216

95,962,907

179

75,013,314

CanadaCanada79,419,911

76,940,514

156,360,425

21,953,765(745,570)(5,888,235)

115,242

36,284,882

63

55,008,066

China

China

340,230,508

75,533,065

415,763,573

93,671,149——

267,813,580(100,445,707)

118

378,496,164

Colombia

Colombia

72,045,555

18,401,822

90,447,377-55310725

4,000,056(26,921,805)

—

—

182

86,766,479

Italy

Italy

41,511,683

1,256,739

42,768,422

3,968,083(843,784)(1,084,036)

6,024,800

6,544,414

6

6,189,927

Luxembourg

Luxembourg

1,645,145

0

1,645,145

801,168

3,470

6,226

2,725,000

37,546,575——

Malaysia

Malaysia

10,028,109

22,173

10,050,282-10225401(2,483,653)

2,078,173

27,521,538

2,419,869

11

312,162

MexicoMexico51,529,831

051,529,831(2,591,947)—

685,002

13,880,576(5,570,997)

10

4,630,730

MoroccoMorocco7,650,411

07,650,411

786,726—(171,517)

6,898,772

2,439,387

13

1,050,756

Netherlands

Netherlands

6,571,999

3,001,246

9,573,245(39,108,277)(794,293)(602,299)

184,837,078(93,491,625)

5

122,543

Peru

Peru

25,149,709

3,744

25,153,453(32,537,329)(5,456,437)(6,047,873)

95,168,877(60,727,845)

46

8,513,699

PortugalPortugal

689,969,592

207,661,006

897,630,598

8,196,232(2,891,692)(2,845,019)

53,541,051

14,698,372

598

142,212,790

Singapore

Singapore

674,833,908

52,807,512

727,641,420

4,954,828(1,644,800)(1,902,400)

242,664,129(192,691,965)

7

13,479,266

Suriname

Suriname

2,769,869

336,395

3,106,264

2,741,754—(14,552)

—

—

—

—

ThailandThailand

22,229,342

12,428,308

34,657,650(9,265,299)(4,695,729)(2,036,738)

3,878,374(31,717,960)

42

246,230

United ArabEmirates

United ArabEmirates

7,446,215

333,215,664

340,661,879(17,243,750)(91,538,669)(26,074,073)

1,123,554

842,052

32

1,418,396,059

UK

UK

80,948,850

218,025

81,166,875

6,123,219(1,533,845)(1,370,910)

3,337,490

9,117,240

7

6,878,039

USA

USA

68

0

68

-121255

0

0

8477

-11709120267

CHAPTER 5 Appendix

List of companies and core business22

Company

Tax jurisdiction

Business

ATLAS, S.A. COMBUSTIBLES Y LUBRIFICANTES

Spain

Sales, marketing and distribution

CEPSA ENERGY COMPANY INTERNATIONAL, SLU

Spain

Manufacturing and production

CEDIPSA COMPAÑIA ESPAÑOLA DISTRIBUIDORA DE PETROLEOS, S.A

Spain

Sales, marketing and distribution

CEPSA (RHOURDE EL ROUNI) LIMITED

Spain

Manufacturing and production

CEPSA ALGERIE, S.L.

Spain

Manufacturing and production

CEPSA AVIACIÓN, S.A.

Spain

Sales, marketing and distribution

CEPSA BIOENERGÍA SAN ROQUE, S.L.U

Spain

Manufacturing and production

CEPSA BUSINESS SERVICES S.A.

Spain

Administration, management and support services

CEPSA CARD, S.A.U.

Spain

Sales, marketing and distribution

CEPSA COLOMBIA, S.A.

Spain

Manufacturing and production

CEPSA COMERCIAL PETROLEO, S.A.U.

Spain

Sales, marketing and distribution

CEPSA E.P. ABU DHABI, S.L.U

Spain

Manufacturing and production

CEPSA EP ESPAÑA, S.L.U.

Spain

Manufacturing and production

CEPSA GAS Y ELECTRICIDAD, S.A.U

Spain

Sales, marketing and distribution

CEPSA PERU, S.A.

Spain

Ownership of shares or other equity instruments

CEPSA PETRONUBA, S.A.U.

Spain

Administration, management and support services

CEPSA QUIMICA CHINA, S.A.

Spain

Ownership of shares or other equity instruments

CEPSA QUIMICA, SA

Spain

Research and development, sales, marketing and distribution

CEPSA, S.A.

Spain

Ownership of shares or other equity instruments

CEPSA SURINAM, S.L.U

Spain

Manufacturing and production

CEPSA TRADING, S.A.U.

Spain

Purchases and supplies, supply, marketing and distribution

CMD AEROPUERTOS CANARIOS, S.L.

Spain

Sales, marketing and distribution

COASTAL ENERGY COMPANY, S.L.U.

Spain

Ownership of shares or other equity instruments

COASTAL ENERGY COMPANY (KHORAT) LTD

Spain

Ownership of shares or other equity instruments

COMPAÑIA ESPAÑOLA DE PETROLEOS, SA

Spain

Research and development; ownership and management of intellectual property; purchases and supplies;
manufacturing and production; sales, marketing and distribution; administration, management andsupport services; provision of services to unrelated companies; intragroup financing; insurance; ownershipof shares or other equity instruments

ERS SPAIN GESTIÓN CORREDURÍA DE SEGUROS, S.L.

Spain

Sales, marketing and distribution

GENERACIÓN ELÉCTRICA PENINSULAR, S.A.

Spain

Manufacturing and production

Difference from 2020:•

Exclusions: PLASTIFICANTES DE LUTXANA, S.A.; INTRANSPORT SERVICE XXI, S.L.U.

•

Changes in business: CEPSA QUIMICA, SA, addition of activity; IOT4OIL, S.L.U., idle; MITRA MEDULAS, S.L.U, MITRA ALFA, S.L.U., MITRA BETA, S.L.U., MITRA GAMMA, S.L.U., change of activity; CEPSA OLEO
E GAS DO BRASIL LTDA., idle.

268

CHAPTER 5 Appendix

Company

Tax jurisdiction

Business

OLEODUCTOS CANARIOS, S.A.

Spain

Provision of services to unrelated companies

PETROLEOS DE CANARIAS, SA

Spain

Sales, marketing and distribution

RED ESPAÑOLA DE SERVICIOS, S.A.U

Spain

Sales, marketing and distribution

RESSA SERVICE, S.L.U.

Spain

Idle

SERVICIOS ENERGÉTICOS DE ALTA EFICIENCIA, S.A.U.

Spain

Sales, marketing and distribution

SPANISH INTOPLANE SERVICES, S.L.U.

Spain

Sales, marketing and distribution

SURESA RETAMA, S.L.U.

Spain

Sales, marketing and distribution

CEPSA FOUNDATION

Spain

Non-profit organisations

CEPSA FINANCE, S.A.U.

Spain

Intragroup financing

CEPSA TREASURY, S.A.U.

Spain

Intragroup financing

CEPSA GAS COMERCIALIZADORA, S.A.

Spain

Sales, marketing and distribution

MITRA DELTA SLU

Spain

Sales, marketing and distribution

MITRA IOTA SLU

Spain

Sales, marketing and distribution

MITRA EPSILON SLU

Spain

Sales, marketing and distribution

GASIB SOCIEDAD IBERICA DE GAS LICUADO, S.L.U.

Spain

Sales, marketing and distribution

MITRA SIGMA SLU

Spain

Sales, marketing and distribution

MITRA LAMBDA SLU

Spain

Sales, marketing and distribution

MITRA NU SLU

Spain

Sales, marketing and distribution

MITRA OMICRON

Spain

Sales, marketing and distribution

MITRA PI SLU

SpainSales, marketing and distribution

IOT4OIL, S.L.U.

Spain

Sales, marketing and distribution; idle.

MITRA MEDULAS, S.L.U.

Spain

Sales, marketing and distribution

MITRA ALFA, S.L.U.

Spain

Sales, marketing and distribution

MITRA BETA, S.L.U.

Spain

Sales, marketing and distribution

MITRA GAMMA, S.L.U.

Spain

Sales, marketing and distribution

SESELLE RENOVABLES, S.L.U.

Spain

Sales, marketing and distribution

REDES RENOVABLES, S.L.U.

Spain

Sales, marketing and distribution

CHANTEIRO RENOVABLES, S.L.U.

Spain

Sales, marketing and distribution

MAGNA EXPERGERE, S.A.

Spain

Sales, marketing and distribution

DIGITAL X COMPANY, S.L.U.

Spain

Sales, marketing and distribution

GENERACION CARTEIA, S.L.U.

Spain

Sales, marketing and distribution

CEPSA (RHOURDE EL ROUNI) LTD., Permanent Establishment

Algeria

Manufacturing and production

CEPSA ALGERIE S.L., Permanent Establishment

Algeria

Manufacturing and production

CEPSA QUIMICA BELGIUM, N.V.

Belgium

Sales, marketing and distribution

CEPSA OLEO E GAS DO BRASIL LTDA.

BrazilIdle

269

CHAPTER 5 Appendix

Company

Tax jurisdiction

Business

DETEN QUIMICA, S.A.

BrazilManufacturing and production

PETRESA PARTICIPAÇOES, LTDA

BrazilIdle

CEPSA CHIMIE BÉCANCOUR, INC.

CanadaManufacturing and production

CEPSA CHEMICAL PRODUCTS (SHANGHAI) Co., Ltd.

China

Sales, marketing and distribution

CEPSA CHEMICAL (SHANGHAI), CO., LTD.

China

Manufacturing and production

CEPSA COLOMBIA, S.A. (Colombia Branch)

Colombia

Manufacturing and production

CEPSA ITALIA, S.p.A.

Italy

Sales, marketing and distribution

CONSORCIO RESSA

Italy

Sales, marketing and distribution

TEIDE RE, S.A.

Luxembourg

Insurance

COASTAL ENERGY KBM SDN BHD

Malaysia

Manufacturing and production

DETISA COMERCIAL PETRÓLEO, S.A. DE C.V.

MexicoSales, marketing and distribution

CEPSA E.P. MEXICO, S DE R.L. DE C.V.

MexicoSales, marketing and distribution

PETROSUD, S.A.

MoroccoManufacturing and production

CEPSA MAGHREB, S.A.

MoroccoManufacturing and production

CCP HYDROCARBURES, S.A.R.L.

MoroccoManufacturing and production

CEPSA INTERNATIONAL, B.V.

Netherlands

Intragroup financing

CEPSA QUIMICA NETHERLANDS, B.V.

Netherlands

Sales, marketing and distribution

CEPSA PERUANA, S.A.C.

Peru

Manufacturing and production

CEPSA PORTUGUESA PETRÓLEOS, S.A.

Portugal

Sales, marketing and distribution

PROPEL-PRODUTOS DE PETROLEO, L.D.A.

Portugal

Sales, marketing and distribution

GASIB SOCIEDADE IBÉRICA DE GÁS LIQUEFEITO LTD

Portugal

Sales, marketing and distribution

CEPSA GAS Y ELECTRICIDAD, S.A. - PORTUGAL BRANCH

Portugal

Sales, marketing and distribution

MOPU HOLDINGS (SINGAPORE) PTE LTD

Singapore

Sales, marketing and distribution

CEPSA TRADING ASIA PTE LTD (SINGAPORE)

Singapore

Sales, marketing and distribution

CEPSA SURINAM, S.L.U EP

Suriname

Manufacturing and production

CEPSA ENERGY COMPANY INTERNATIONAL, SLU (Thailand Branch)

Thailand

Manufacturing and production

CEC SERVICES (THAILAND) LTD.

Thailand

Administration, management and support services

NUCOASTAL (THAILAND) LIMITED

Thailand

Sales, marketing and distribution

CEPSA MARINE FUELS DMCC

United Arab Emirates

Sales, marketing and distribution

CEPSA PETROLEUM OPERATIONS MIDDLE EAST LLC

United Arab Emirates

Administration, management and support services

CEPSA EP ABU DHABI, S.L.U (Abu Dhabi Branch)

United Arab Emirates

Manufacturing and production

CEPSA UK, LTD.

United Kingdom

Sales, marketing and distribution

CEPSA TRADING AMERICAS, INC

United States

Sales, marketing and distribution270

CHAPTER 5 Appendix

APPENDIX 8. SUSTAINABILITY STANDARDS INDEX
Spanish Law 11/2018 and GRI Cross-Reference Table
LIST OF CONTENTS REQUIRED UNDER LAW 11/2018
Disclosures sought under Spanish Law 11/2018

Reporting criterion

Section of the report in which the disclosures under Law 11/2018
are provided

GRI 2-6 Activities, value chain and other business relationships

1.3 OUR COMPANY 1.3.3 Our businesses

GENERAL INFORMATION
A brief description of the undertaking's business model, including
disclosures relating to its business environment, organisation andstructure
Operating markets

The undertaking's objectives and strategy

Main trends and factors that could affect future development
Reporting framework used
Materiality principle
Principal short-, medium- and long-term risks

GRI 2-1 Organizational details
GRI 2-6 Activities, value chain and other business relationships
GRI 2-22 Statement on sustainable development strategy
GRI 3-3 Management of material topics
GRI 2-22 Statement on sustainable development strategy
GRI 201-2
GRI 1-3 System of GRI standards
GRI 3-1 Process to determine material topics
GRI 3-2 List of material topics
GRI 3-3 Management of material topics

1.3 OUR COMPANY 1.3.5 Global footprint
3.1 MOVING TOWARDS A NET ZERO WORLD 3.1.2 Strategy under theguidance of Positive Motion
1.1 TRANSFORMING OUR ENERGY BUSINESSAPPENDIX I ABOUT THIS REPORTAPPENDIX 2 MATERIALITY
APPENDIX 4 DETAILED INFORMATION ABOUT THE COMPANY’S KEY
RISKS
The key performance indicators (KPI) pertaining to the non-financial
information are distributed throughout the report. Refer to the crossreference table for further details.

Key performance indicators
ENVIRONMENTAL MATTERSManagement approach: description and results of the policies
addressing these matters and of the principal risks related to matterslinked to the undertaking's operations

GRI 2-12 Role of the highest governance body in overseeing themanagement of impacts

3.1 ADVANCING TOWARDS A NET ZERO WORLDGRI 2-23 Policy commitments

3.2 MOVING FORWARD ON MINIMISING OUR ENVIRONMENTAL
IMPACT

GRI 3-3 Management of material topics
DETAILED GENERAL INFORMATION
Detailed information about the current and foreseeable impacts of theundertaking's activities on the environment and, as appropriate, on
health and safety

GRI 3-3 Management of material topics

3.2 MOVING FORWARD ON MINIMISING OUR ENVIRONMENTAL
IMPACT 3.2.1 Managerial excellence
Appendix 3.5.1 Managerial excellence
Appendix 3.5.2 Environmental investments

Environmental assessment and certification processes

GRI 2-23 Policy commitments

3.2 MOVING FORWARD ON MINIMISING OUR ENVIRONMENTAL
IMPACT 3.2.1 Managerial excellence
Appendix 3.5.1 Managerial excellence
Appendix 3.5.2 Environmental investments

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Disclosures sought under Spanish Law 11/2018

Reporting criterion

Section of the report in which the disclosures under Law 11/2018
are provided

Resources dedicated to preventing environmental risks

GRI 3-3 Management of material topics

3.2 MOVING FORWARD ON MINIMISING OUR ENVIRONMENTAL
IMPACT 3.2.1 Managerial excellence
Appendix 3.5.1 Managerial excellence
Appendix 3.5.2 Environmental investments

How the precautionary principle is addressed

Amount of provisions recorded or guarantees extended forenvironmental claims

GRI 2-23 Policy commitments
GRI 3-3 Management of material topics

GRI 3-3 Management of material topics

3.2 MOVING FORWARD ON MINIMISING OUR ENVIRONMENTAL
IMPACT 3.2.1 Managerial excellence
Appendix 3.5.1 Managerial excellence
Appendix 3.5.2 Environmental investments
3.2 MOVING FORWARD ON MINIMISING OUR ENVIRONMENTAL
IMPACT 3.2.1 Managerial excellence
Appendix 3.5.1 Managerial excellence
Appendix 3.5.2 Environmental investments
We have environmental liability insurance for all our production,
storage and supply facilities, coverage which goes beyond ourregulatory requirement. Note 28 of our annual financial statements,“Environmental matters”, provides disclosures about our provisions.

POLLUTION
GRI 3-3 Management of material topics
GRI 305-1 Direct (Scope 1) GHG emissions
Measures to prevent, reduce or repair the emissions that seriously
impact the environment, taking into consideration any form of air
pollution specific to the business, including noise and light pollution

GRI 305-2 Indirect (Scope 3) GHG emissions

3.2 MOVING FORWARD ON MINIMISING OUR ENVIRONMENTAL
IMPACT 3.2.5 Continuous control of our air emissions

GRI 305-3 Other indirect (Scope 3) GHG emissions

3.5 MOVING FORWARD ON MINIMISING OUR ENVIRONMENTAL
IMPACT 3.5.6 Continuous control of our air emissions

GRI 305-5 Reduction of GHG emissions
GRI 305-7 Nitrogen oxides (NOx), sulfur oxides (SOx) other significant air
emissions
CIRCULAR ECONOMY, PREVENTION AND WASTE MANAGEMENTGRI 306-2 Waste generation and significant waste-related
impacts
Measures for the prevention, recycling, reuse and other forms ofrecovering and eliminating waste. Initiatives undertaken to eliminate
food waste.

GRI 306-3 (2020) Waste generated

3.2 MOVING FORWARD ON MINIMISING OUR ENVIRONMENTAL
IMPACT 3.2.4 Making the business more circular

GRI 306-3 (2016) Significant spills

3.5 MOVING FORWARD ON MINIMISING OUR ENVIRONMENTAL
IMPACT 3.5.5 Making the business more circular

GRI 306-4 Waste diverted from disposal
GRI 306-5 Waste directed to disposal
SUSTAINABLE USE OF RESOURCES

Water consumption and supply, in keeping with local limitations

Use and protection of raw materials

GRI 303-3 Water withdrawal

3.2 MOVING FORWARD ON MINIMISING OUR ENVIRONMENTAL
IMPACT 3.2.2 Responsible water consumption

GRI 303-5 Water consumption

APPENDIX 3.5 MOVING FORWARD ON MINIMISING OURENVIRONMENTAL IMPACT 3.5.3 Responsible water consumption

GRI 301-1 Materials used by weight or volume

3.2 MOVING FORWARD ON MINIMISING OUR ENVIRONMENTAL
IMPACT 3.2.4 Making the business more circular

GRI 301-2 Recycled input materials used

3.5 MOVING FORWARD ON MINIMISING OUR ENVIRONMENTAL
IMPACT 3.5.5 Making the business more circular272

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Reporting criterion
GRI 3-3 Management of material topics

Energy: Direct and indirect energy consumption. Measures taken to
improve energy efficiency. Use of renewable sources of energy

Section of the report in which the disclosures under Law 11/2018
are provided
3.2 ADVANCING TOWARDS A NET ZERO WORLDGRI 302-1 Energy consumption within the organization
GRI 302-2 Energy consumption outside the organization
GRI 302-3 Energy intensity

APPENDIX 3.4 ADVANCING TOWARDS A NET ZERO WORLD

CLIMATE CHANGE
GRI 301-1 Materials used by weight or volume
GRI 305-1 Direct (Scope 1) GHG emissions
Greenhouse gas emissions generated as a result of the undertaking's
activity, including through use of the goods and services it produces

GRI 305-2 Indirect (Scope 3) GHG emissions
GRI 305-3 Other indirect (Scope 3) GHG emissions

3.1 ADVANCING TOWARDS A NET ZERO WORLD 3.1.4 Key climatechange metrics
APPENDIX 3.4 MOVING TOWARDS A NET ZERO WORLD 3.4.2 GHG
emissions

GRI 305-4 GHG emissions intensity
GRI 3-3 Management of material topics
Measures taken to adapt for the consequences of climate change

Medium- and long-term GHG emission-cutting targets voluntarily
adhered to and the measures implemented to that end

GRI 201-2 Financial implications and other risks and opportunities due
to climate change

3.1 ADVANCING TOWARDS A NET ZERO WORLD 3.1.4 Key climatechange metrics

GRI 305-5 Reduction of GHG emissions

APPENDIX 3.4 MOVING TOWARDS A NET ZERO WORLD 3.4.2 GHG
emissions

GRI 3-3 Management of material topics

3.1 ADVANCING TOWARDS A NET ZERO WORLD 3.1.4 Key climatechange metrics

GRI 305-5 Reduction of GHG emissions

APPENDIX 3.4 MOVING TOWARDS A NET ZERO WORLD 3.4.2 GHG
emissions

BIODIVERSITY PROTECTION

Measures taken to preserve or restore biodiversity

Impacts caused by the undertaking's activities or operations onprotected areas

GRI 3-3 Management of material topics
GRI 304-3

GRI 304-1 Operational sites owned, leased, managed in, or adjacent to,protected areas and areas of high biodiversity value outside protectedareas

3.2 MOVING FORWARD ON MINIMISING OUR ENVIRONMENTAL
IMPACT
3.2.3 Biodiversity protection
3.5 MOVING FORWARD ON MINIMISING OUR ENVIRONMENTAL
IMPACT 3.5.4 Biodiversity protection
3.2 MOVING FORWARD ON MINIMISING OUR ENVIRONMENTAL
IMPACT 3.2.3 Biodiversity protection
3.5 MOVING FORWARD ON MINIMISING OUR ENVIRONMENTAL
IMPACT 3.5.4 Biodiversity protection

SOCIAL AND EMPLOYEE MATTERSManagement approach: description and results of the policies
addressing these matters and of the principal risks related to matterslinked to the undertaking's operations

GRI 2-12 Role of the highest governance body in overseeing themanagement of impacts

3.3 READY FOR WORKPLACE CHANGE

GRI 2-19 Remuneration policies

3.3.5 Social dialogue and labour relations

GRI 2-23 Policy commitments

APPENDIX 3.6 CREATING A WORKPLACE READY FOR CHANGE

GRI 3-3 Management of material topics

3.6.6 Social dialogue and labour relations

273

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Disclosures sought under Spanish Law 11/2018

Reporting criterion

Section of the report in which the disclosures under Law 11/2018
are provided

GRI 2-7 Employees

3.3 READY FOR WORKPLACE CHANGE

GRI 3-3 Management of material topics

APPENDIX 3.6 CREATING A WORKPLACE READY FOR CHANGE 3.6.1
Workforce overview

EMPLOYMENT
Total number and breakdown of employees by country, gender, age
and employee category

GRI 405-1 Diversity of governance bodies and employees
Total number and breakdown by contract category and average annual GRI 2-7 Employees
number of permanent, temporary and part-time contracts by gender,
GRI 2-8 Workers who are not employees
age and employee category

3.3 READY FOR WORKPLACE CHANGE
APPENDIX 3.6 CREATING A WORKPLACE READY FOR CHANGE 3.6.1
Workforce overview
3.3 READY FOR WORKPLACE CHANGE

Number of dismissals by gender, age and employee category

GRI 401-1 New employees hires and employee turnover

Average pay and trend broken down by gender, age, employee category GRI 2-21 Annual total compensation ratioor equivalent metric
GRI 405-2 Ratio of basic salary and remuneration of women to men

APPENDIX 3.6 CREATING A WORKPLACE READY FOR CHANGE 3.6.1
Workforce overview
3.3 READY FOR WORKPLACE CHANGE
APPENDIX 3.6 CREATING A WORKPLACE READY FOR CHANGE 3.6.1
Workforce overview
3.3 READY FOR WORKPLACE CHANGE

Wage gap, remuneration per equivalent job or company average

GRI 405-2 Ratio of basic salary and remuneration of women to men

APPENDIX 3.6 CREATING A WORKPLACE READY FOR CHANGE 3.6.1
Workforce overview

Average remuneration for directors and executives, including bonuses,
attendance fees, termination benefits, long-term savings/pension
benefits and any other compensation, broken down by gender

GRI 2-19 Remuneration policies

3.3 READY FOR WORKPLACE CHANGE

GRI 2-20 Process to determine remuneration

APPENDIX 3.6 CREATING A WORKPLACE READY FOR CHANGE 3.6.1
Workforce overview

Implementation of right-to-disconnect policies

GRI 3-3 Management of material topics

Number of employees with a disability

GRI 405-1 Diversity of governance bodies and employees

APPENDIX 3.6 CREATING A WORKPLACE READY FOR CHANGE 3.6.1
Workforce overview

Organisation of working timeGRI 2-7 Employees

APPENDIX 3.6 CREATING A WORKPLACE READY FOR CHANGE 3.6.6
Social dialogue and labour relations

Absenteeism in hours

GRI 3-3 Management of material topics

APPENDIX 3.6 CREATING A WORKPLACE READY FOR CHANGE 3.6.6
Social dialogue and labour relations

Measures designed to facilitate work-life balance and sharing of caring
responsibilities

GRI 3-3 Management of material topics

3.3 READY FOR WORKPLACE CHANGE 3.3.2 A diverse and inclusive
workplaceGRI 401-3 Parental leave

APPENDIX 3.6 CREATING A WORKPLACE READY FOR CHANGE 3.6.3
A diverse and inclusive workplace

3.3 READY FOR WORKPLACE CHANGE
APPENDIX 3.6 CREATING A WORKPLACE READY FOR CHANGE 3.6.1
Workforce overview
3.3 READY FOR WORKPLACE CHANGE

ORGANISATION OF WORK

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Reporting criterion

Section of the report in which the disclosures under Law 11/2018
are provided

HEALTH AND SAFETY
GRI 3-3 Management of material topics
GRI 403-1 Workers covered by an occupational health and safety
management system
GRI 403-2 Hazard identification, risk assessment, and incident
investigation
GRI 403-3 Occupational health services
Health and safety conditions in the workplace

GRI 403-4 Worker participation, consultation, and communication on
occupational health and safety
GRI 403-5 Worker training on occupational health and safety

3.4 BECOMING A ZERO-ACCIDENT WORKPLACE 3.4.1 Creating asafety culture
APPENDIX 3.7 BECOMING A ZERO-ACCIDENT WORKPLACEGRI 403-6 Promotion of worker health
GRI 403-7 Prevention and mitigation of occupational health and safety
impacts directly linked by business relationships
GRI 403-8 Workers covered by an occupational health and safety
management system

Workplace accidents, specifying frequency and severity and workrelated illnesses, broken down by gender.

GRI 403-2 Hazard identification, risk assessment, and incident
investigation
GRI 403-9 Work-related injuries
GRI 403-10 Work-related ill health

3.4 BECOMING A ZERO-ACCIDENT WORKPLACE 3.4.1 Creating asafety culture
APPENDIX 3.7 BECOMING A ZERO-ACCIDENT WORKPLACE

MANAGEMENT-EMPLOYEE RELATIONSGRI 2-28 Membership of associations
How management-employee dialogue is organised, including
procedures for informing and consulting employees and negotiatingwith them

GRI 2-29 Approach to stakeholder engagement

3.3 READY FOR WORKPLACE CHANGE

GRI 402-1 Minimum notice periods regarding operational changes

3.3.5 Social dialogue and labour relations

GRI 407-1 Operations and suppliers in which the right to freedom of
association and collective bargaining may be at risk
Percentage of employees covered by collective bargaining agreementsby country

GRI 2-30 Collective bargaining agreements

3.3 READY FOR WORKPLACE CHANGE 3.3.2 A diverse and inclusive
workplace
APPENDIX 3.6 CREATING A WORKPLACE READY FOR CHANGE 3.6.3
A diverse and inclusive workplace

GRI 403-1 Workers covered by an occupational health and safety
management system
List of collective bargaining agreements, particularly with respect toworkplace health and safety

GRI 403-4 Worker participation, consultation, and communication on
occupational health and safety

3.4 BECOMING A ZERO-ACCIDENT WORKPLACE 3.4.2 Safety
management: commitment and best practices

GRI 407-1 Operations and suppliers in which the right to freedom of
association and collective bargaining may be at risk
TRAINING
Policies implemented in the area of training

GRI 404-2 Programs for upgrading employee skills and transition
assistance programs

3.3 READY FOR WORKPLACE CHANGE 3.3.3 Learning culture
APPENDIX 3.6 CREATING A WORKPLACE READY FOR CHANGE 3.6.4
Learning culture275

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Reporting criterion

Total training hours by employee category

GRI 404-1 Average hours of training per year and per employee

Section of the report in which the disclosures under Law 11/2018
are provided
3.3 READY FOR WORKPLACE CHANGE 3.3.3 Learning culture
APPENDIX 3.6 CREATING A WORKPLACE READY FOR CHANGE 3.6.4
Learning culture

UNIVERSAL ACCESSIBILITY

Accessibility for persons with disabilities

GRI 405-1 Diversity of governance bodies and employees

3.3 READY FOR WORKPLACE CHANGE 3.3.2 A diverse and inclusive
workplace
APPENDIX 3.6 CREATING A WORKPLACE READY FOR CHANGE 3.6.3
A diverse and inclusive workplace

EQUALITYGRI 401-3 Parental leave
Measures taken to foster equal treatment of and opportunities for men
GRI 404-2 Programs for upgrading employee skills and transition
and women
assistance programs
GRI 405-1 Diversity of governance bodies and employees
Equality plans, measures taken to foster employment, anti-sexual/
gender harassment protocols

GRI 405-2 Ratio of basic salary and remuneration of women to men
GRI 406-1 Incidents of discrimination and corrective actions taken
GRI 3-3 Management of material topics

Anti-discrimination and diversity management policies

3.3 READY FOR WORKPLACE CHANGE 3.3.2 A diverse and inclusive
workplace
APPENDIX 3.6 CREATING A WORKPLACE READY FOR CHANGE 3.6.3
A diverse and inclusive workplace
APPENDIX 3.6 CREATING A WORKPLACE READY FOR CHANGE 3.6.1
Workforce overview; 3.6.5 Remuneration: competitiveness andengagement

GRI 405-1 Diversity of governance bodies and employees

3.3 READY FOR WORKPLACE CHANGE 3.3.2 A diverse and inclusive
workplaceGRI 405-2 Ratio of basic salary and remuneration of women to men

APPENDIX 3.6 CREATING A WORKPLACE READY FOR CHANGE 3.6.3
A diverse and inclusive workplace

GRI 406-1 Incidents of discrimination and corrective actions taken
RESPECT FOR HUMAN RIGHTSManagement approach: description and results of the policies
addressing these matters and of the principal risks related to matterslinked to the undertaking's operations

GRI 2-12 Role of the highest governance body in overseeing themanagement of impacts

3.6 BEHAVING ETHICALLY AND RESPECTFULLY 3.6.1 Ethics in our
day-to-day operations

GRI 2-23 Policy commitments
GRI 3-3 Management of material topics

APPENDIX 3.9 BEHAVING ETHICALLY AND RESPECTFULLY 3.9.4
Human rights

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Reporting criterion

Section of the report in which the disclosures under Law 11/2018
are provided

DUE DILIGENCE PROCEDURESGRI 2-23 Policy commitments
GRI 2-26 Mechanisms for seeking advice and raising concerns
GRI 407-1 Operations and suppliers in which the right to freedom of
association and collective bargaining may be at risk
GRI 408-1 Operations and suppliers at significant risk for incidents ofchild labor
Human rights due diligence procedures

GRI 409-1 Operations and suppliers at significant risk for incidents offorced or compulsory labor
GRI 410-1 Security personnel trained in human rights policies orprocedures

3.6 BEHAVING ETHICALLY AND RESPECTFULLY 3.6.3 Fiscal
transparency and responsibility

APPENDIX 3.9 BEHAVING ETHICALLY AND RESPECTFULLY 3.9.5
Legal

GRI 411-1 Incidents of violations involving rights of indigenous peoples
GRI 414-2 Negative social impacts in the supply chain and actions
taken
GRI 3-3 Management of material topics
GRI 407-1 Operations and suppliers in which the right to freedom of
association and collective bargaining may be at risk
GRI 408-1 Operations and suppliers at significant risk for incidents ofchild labor
Processes and arrangements for preventing human rights abuses andany measures taken to mitigate, manage and repair possible abuses
that have materialised

3.6 BEHAVING ETHICALLY AND RESPECTFULLY 3.6.3 Fiscal
transparency and responsibility

GRI 409-1 Operations and suppliers at significant risk for incidents offorced or compulsory labor
GRI 410-1 Security personnel trained in human rights policies orprocedures

APPENDIX 3.9 BEHAVING ETHICALLY AND RESPECTFULLY 3.9.5
Legal

GRI 411-1 Incidents of violations involving rights of indigenous peoples
GRI 414-2 Negative social impacts in the supply chain and actions
taken
GRI 2-26 Mechanisms for seeking advice and raising concerns
Claims of humans rights abuses

GRI 3-3 Management of material topics
GRI 406-1 Incidents of discrimination and corrective actions taken

Measures introduced to promote and comply with the provisions
contained in the ILO's fundamental conventions covering the freedomof association and the effective recognition of the right to collective
bargaining; the elimination of all forms of forced or compulsory labour;
the effective abolition of child labour; and the elimination of
discrimination in respect of employment and occupation.

3.6 BEHAVING ETHICALLY AND RESPECTFULLY 3.6.2 Human rights

APPENDIX 3.9 BEHAVING ETHICALLY AND RESPECTFULLY 3.9.4
Human rights
3.6 BEHAVING ETHICALLY AND RESPECTFULLY 3.6.1 Ethics in our
day-to-day operations

GRI 3-3 Management of material topics
APPENDIX 3.9 BEHAVING ETHICALLY AND RESPECTFULLY 3.9.4
Human rights

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Disclosures sought under Spanish Law 11/2018

Reporting criterion

Section of the report in which the disclosures under Law 11/2018
are provided

GRI 2-12 Role of the highest governance body in overseeing themanagement of impacts

3.6 BEHAVING ETHICALLY AND RESPECTFULLY 3.6.2 Human rights

GRI 2-23 Policy commitments

APPENDIX 3.9 BEHAVING ETHICALLY AND RESPECTFULLY 3.9.3
Anti-corruption effort

ANTI-CORRUPTION AND BRIBERY STANCEManagement approach: description and results of the policies
addressing these matters and of the principal risks related to matterslinked to the undertaking's operations

GRI 3-3 Management of material topics
CORRUPTION AND BRIBERYGRI 2-23 Policy commitments
GRI 2-26 Mechanisms for seeking advice and raising concerns
GRI 3-3 Management of material topics
Measures taken to prevent corruption and bribery

GRI 205-1 Operations assessed for risks related to corruption

3.6 BEHAVING ETHICALLY AND RESPECTFULLY 3.6.1 Ethics in our
day-to-day operations

GRI 205-2 Communication and training about anti-corruption policies
and procedures

APPENDIX 3 Sustainability performance 3.9 BEHAVING ETHICALLYAND RESPECTFULLY 3.9.3 Anti-corruption effort

GRI 205-3 Confirmed incidents of corruption and actions taken
GRI 415-1 Political contributions
GRI 2-23 Policy commitments
GRI 2-26 Mechanisms for seeking advice and raising concerns
GRI 3-3 Management of material topics
Measures to combat money laundering

3.6 BEHAVING ETHICALLY AND RESPECTFULLY 3.6.1 Ethics in our
day-to-day operations

GRI 205-1 Operations assessed for risks related to corruption
GRI 205-2 Communication and training about anti-corruption policies
and procedures

APPENDIX 3 Sustainability performance 3.9 BEHAVING ETHICALLYAND RESPECTFULLY 3.9.3 Anti-corruption effort

GRI 205-3 Confirmed incidents of corruption and actions taken
Contributions to non-profit entities

GRI 2-28 Membership of associations
GRI 201-1 Direct economic value generated and distributed

2.5 PROACTIVE STAKEHOLDER ENGAGEMENT 2.5.1 Stakeholders
2.5.2 Institutional relations

GRI 2-12 Role of the highest governance body in overseeing themanagement of impacts

3.7 LOCAL COMMUNITY RELATIONSGRI 2-23 Policy commitments GRI 3-3 List of material topics

3.8 POSITIVE IMPACT ON SOCIETY - CEPSA FOUNDATION

SOCIETY MATTERSManagement approach: description and results of the policies
addressing these matters and of the principal risks related to matterslinked to the undertaking's operations

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Disclosures sought under Spanish Law 11/2018

Reporting criterion

Section of the report in which the disclosures under Law 11/2018
are provided

COMMITMENT TO SUSTAINABLE DEVELOPMENTGRI 3-3 Management of material topics
GRI 201-1 Direct economic value generated and distributed
GRI 203-2 Significant indirect economic impacts
Impact of the undertaking's activities on society in terms of
employment and local development

GRI 204-1 Proportion of spending on local suppliers
GRI 413-1 Operations with local community engagement, impact
assessments, and development programs

3.7 LOCAL COMMUNITY RELATIONS
3.8 POSITIVE IMPACT ON SOCIETY - CEPSA FOUNDATIONGRI 413-2 Operations with significant actual and potential negative
impacts on local communities
GRI 3-3 Management of material topics
GRI 201-1 Direct economic value generated and distributed
GRI 203-2 Significant indirect economic impacts
Impact of the undertaking's activities on society in terms of local
communities and territories

GRI 411-1 Incidents of violations involving rights of indigenous peoples
GRI 413-1 Operations with local community engagement, impact
assessments, and development programs

3.7 LOCAL COMMUNITY RELATIONS
3.8 POSITIVE IMPACT ON SOCIETY - CEPSA FOUNDATIONGRI 413-2 Operations with significant actual and potential negative
impacts on local communities
GRI 2-29 Approach to stakeholder engagement
GRI 204-1 Proportion of spending on local suppliers
Engagement with local community representatives; communication
channels in place

GRI 413-1 Operations with local community engagement, impact
assessments, and development programs

3.7 LOCAL COMMUNITY RELATIONS
3.8 POSITIVE IMPACT ON SOCIETY - CEPSA FOUNDATIONGRI 413-2 Operations with significant actual and potential negative
impacts on local communities
Membership of associations and sponsorships

GRI 2-28 Membership of associations

3.7 LOCAL COMMUNITY RELATIONSGRI 201-1 Direct economic value generated and distributed

3.8 POSITIVE IMPACT ON SOCIETY - CEPSA FOUNDATIONGRI 3-3 Management of material topics

3.5 FACILITATING A SUSTAINABLE SUPPLY CHAIN 3.5.3 Positive
supplier relations

OUTSOURCING AND SUPPLIERS

Inclusion in the purchasing policy of social, gender equality andenvironmental matters

GRI 204-1 Proportion of spending on local suppliers
GRI 414-1 New suppliers that were screened using social criteria
GRI 414-2 Negative social impacts in the supply chain and actions
taken

APPENDIX 3.8 FACILITATING A SUSTAINABLE SUPPLY CHAIN

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Disclosures sought under Spanish Law 11/2018

Reporting criterion

Section of the report in which the disclosures under Law 11/2018
are provided

GRI 2-6 Activities, value chain and other business relationships
GRI 308-1 New suppliers that were screened using environmental
criteria
Contemplation of social and environmental performance in supplierand subcontractor engagement.

GRI 407-1 Operations and suppliers in which the right to freedom of
association and collective bargaining may be at risk

3.5 FACILITATING A SUSTAINABLE SUPPLY CHAIN 3.5.3 3.5.3
Positive supplier relations

GRI 409-1 Operations and suppliers at significant risk for incidents offorced or compulsory labor
GRI 414-1 New suppliers that were screened using social criteria

APPENDIX 3.8 FACILITATING A SUSTAINABLE SUPPLY CHAIN

GRI 414-2 Negative social impacts in the supply chain and actions
taken
Supervision and audit systems and their outcomesGRI 2-6 Activities, value chain and other business relationships

APPENDIX 5. INTERNAL CONTROL SYSTEM

CONSUMERSGRI 3-3 Management of material topics
Consumer health and safety measures

Consumer claims, complaints and grievance systems

3.4 BECOMING A ZERO-ACCIDENT WORKPLACE 3.4.3 Consumer
health and safety
GRI 416-1 Assessment of the health and safety impacts of product andservice categories
APPENDIX 3 BECOMING A ZERO-ACCIDENT WORKPLACEGRI 2-26 Mechanisms for seeking advice and raising concerns

3.4 BECOMING A ZERO-ACCIDENT WORKPLACE 3.4.3 Consumer
health and safety

GRI 3-3 Management of material topics

APPENDIX 3 BECOMING A ZERO-ACCIDENT WORKPLACETAX INFORMATIONGRI 3-3 Management of material topics
Country-by-country profits

GRI 201-1 Direct economic value generated and distributed

4.2 KEY FINANCIAL AND BUSINESS INDICATORSGRI 207-4 Country-by-country reporting
GRI 3-3 Management of material topics
Income tax paid

GRI 201-1 Direct economic value generated and distributed

4.2 KEY FINANCIAL AND BUSINESS INDICATORSGRI 207-4 Country-by-country reporting
Government grants received

GRI 201-4 Financial assistance received from government

4.2 KEY FINANCIAL AND BUSINESS INDICATORS-APPENDIX 3. Sustainability performance

OTHER SIGNIFICANT INFORMATION
Sustainable Finance Taxonomy

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GRI content index
GRI
standard Description

Reference in the Integrated Report

GRI 11 Sector
standard code

Explanatory notes

GRI 2: General disclosures
2-1

Organizational details

1.3 OUR COMPANY 1.3.5 Global footprint—

2-2

Entities included in the organization’s sustainability
reportingAppendix 1. About this report—
Report for financial year 2022.
Annual.

2-3

Reporting period, frequency and contact point——

Contact points:
comunicacion@cepsa.com
sostenibilidad@cepsa.com

2-4

Restatements of information

Appendix 1. About this report—

2-5

External assurance——

See independent assurance report at the end of
this document

1.2 ACCELERATING VALUE CREATION ACROSS ALL OUR
BUSINESSES
2-6

Activities, value chain and other business relationships

1.3 OUR COMPANY
3.5 FACILITATING A SUSTAINABLE SUPPLY CHAIN—

APPENDIX 3.8 FACILITATING A SUSTAINABLE SUPPLY CHAIN
3.8.1 Description of the supply chain
2-7

Employees

2-8Workers who are not employees

2-9

Governance structure and composition

2-10

2-11

2-12

2-13

Nomination and selection of thehighest governance body
Chair of the highest governancebody
Role of the highest governance bodyin overseeing the management of impacts

2.1 CORPORATE GOVERNANCE
2.2 OUR SUSTAINABILITY MANAGEMENT

2.1 CORPORATE GOVERNANCE—

APPENDIX 3.2 CORPORATE GOVERNANCE—

2.1 CORPORATE GOVERNANCE
2.2 OUR SUSTAINABILITY MANAGEMENT

reporting——managing impacts

in sustainability—

2.1 CORPORATE GOVERNANCE

Delegation of responsibility forRole of the highest governance body
2-14

APPENDIX 3.7 BECOMING A ZERO-ACCIDENT WORKPLACE 3.7.1
Work-related injuries

2.2 OUR SUSTAINABILITY MANAGEMENT
Appendix 1. About this report

—

—

281

CHAPTER 5 Appendix

GRI
standard Description

Reference in the Integrated Report

2-15

Conflicts of interest

3.6 BEHAVING ETHICALLY AND RESPECTFULLY 3.6.1 Ethics in our
day-to-day operations

—

2-16

Communication of critical concerns

APPENDIX 3.2 CORPORATE GOVERNANCE

—

2-17

Collective knowledge of highest governance body

APPENDIX 3.2 CORPORATE GOVERNANCE—

APPENDIX 3.2 CORPORATE GOVERNANCE—

Remuneration policies

APPENDIX 3.6 CREATING A WORKPLACE READY FOR CHANGE
3.6.5 Remuneration: competitiveness and engagement—

Process to determine
remuneration

APPENDIX 3.6 CREATING A WORKPLACE READY FOR CHANGE
3.6.5 Remuneration: competitiveness and engagement—

Annual total compensation ratio

APPENDIX 3.6 CREATING A WORKPLACE READY FOR CHANGE
3.6.5 Remuneration: competitiveness and engagement

—

2-18
2-19
2-20
2-21

Evaluation of the performance of thehighest governance body

GRI 11 Sector
standard code

Explanatory notes

1.1 TRANSFORMING OUR ENERGY BUSINESS
2-22

Statement on sustainable development
strategy

1.2 ACCELERATING VALUE CREATION ACROSS ALL OUR
BUSINESSES
2.2 OUR SUSTAINABILITY MANAGEMENT
2.2 OUR SUSTAINABILITY MANAGEMENT
2.3 SUSTAINABILITY-ALIGNED POLICIES

2-23

Policy commitments

3.6 BEHAVING ETHICALLY AND RESPECTFULLY 3.6.1 Ethics in our
day-to-day operations—

3.6 BEHAVING ETHICALLY AND RESPECTFULLY 3.6.2 Humanrights
2.3 SUSTAINABILITY-ALIGNED POLICIES
2-24

2-25

Embedding policy commitments

3.6 BEHAVING ETHICALLY AND RESPECTFULLY 3.6.1 Ethics in our
day-to-day operations

Processes to remediate negative

3.7 LOCAL COMMUNITY RELATIONS

impacts

APPENDIX 3.10 LOCAL COMMUNITY RELATIONS——

3.6 BEHAVING ETHICALLY AND RESPECTFULLY 3.6.1 Ethics in our
day-to-day operations
2-26

Mechanisms for seeking advice and raising concerns

3.6 BEHAVING ETHICALLY AND RESPECTFULLY 3.6.2 Humanrights—APPENDIX 3.9 BEHAVING ETHICALLY AND RESPECTFULLY 3.9.1
Requests for advice and breaches

282

CHAPTER 5 Appendix

GRI
standard Description

Reference in the Integrated Report

GRI 11 Sector
standard code

Explanatory notes
There were no breaches according to theCompany's reporting criteria.

2-27Compliance with laws and regulations

—

—

2-28

Membership of associations

2.5 PROACTIVE STAKEHOLDER ENGAGEMENT 2.5.2 Institutional
relations—

Note 26.4 “Uncertainty over the treatment ofincome and other taxes” includes information on
information tax-related penalties in Spain andColombia. Based on the opinions of its external
advisors, the Company considers that it is highly
probable that the outcome of the legal
proceedings will be favourable.

APPENDIX 3.3. STAKEHOLDER MANAGEMENT
1.3 OUR COMPANY 1.3.3 Our businesses
2-29

Approach to stakeholder engagement

1.3 OUR COMPANY 1.3.4 Sustainability, mobility and the customer
experience—

2.5 PROACTIVE STAKEHOLDER ENGAGEMENT 2.5.1 Stakeholders
APPENDIX 3.12 OUR CUSTOMERS
3.3 READY FOR WORKPLACE CHANGE
2-30

Collective bargaining agreements

APPENDIX 3.6 CREATING A WORKPLACE READY FOR CHANGE
3.6.6 Social dialogue and labour relations—

GRI 3: Material Topics
3-1

Process to determine material topics

APPENDIX 2. MATERIALITY—

3-2

List of material topics

APPENDIX 2. MATERIALITY—

Climate change and energy transition
3-3Management of material topics - Climate change andenergy transition

3.1 ADVANCING TOWARDS A NET ZERO WORLD

11.1.1

201-2

Financial implications and other risks and opportunities
due to climate change

3.1 ADVANCING TOWARDS A NET ZERO WORLD 3.1.3 Climatechange: risk and opportunity management

11.2.2

302-1

Energy consumption within the organization

APPENDIX 3.4 ADVANCING TOWARDS A NET ZERO WORLD 3.4.1
Energy consumption

11.1.2

302-2

Energy consumption outside the organization

APPENDIX 3.4 ADVANCING TOWARDS A NET ZERO WORLD 3.4.1
Energy consumption

11.1.3

302-3

Energy intensity

APPENDIX 3.4 ADVANCING TOWARDS A NET ZERO WORLD 3.4.1
Energy consumption

11.1.4305-1

Direct (Scope 1) GHG emissions

305-2

Indirect (Scope 2) GHG emissions

3.1 ADVANCING TOWARDS A NET ZERO WORLD 3.1.4 Key climatechange metrics
APPENDIX 3.4 ADVANCING TOWARDS A NET ZERO WORLD 3.4.2
GHG emissions
3.1 ADVANCING TOWARDS A NET ZERO WORLD 3.1.4 Key climatechange metrics
APPENDIX 3.4 ADVANCING TOWARDS A NET ZERO WORLD 3.4.2
GHG emissions

11.1.511.1.6283

CHAPTER 5 Appendix

GRI
standard Description

305-3

Other indirect (Scope 3) GHG emissions

305-4

GHG emissions intensity

305-5

Reduction of GHG emissions

Reference in the Integrated Report
3.1 ADVANCING TOWARDS A NET ZERO WORLD 3.1.4 Key climatechange metrics
APPENDIX 3.4 ADVANCING TOWARDS A NET ZERO WORLD 3.4.2
GHG emissions
3.1 ADVANCING TOWARDS A NET ZERO WORLD 3.1.4 Key climatechange metrics
APPENDIX 3.4 ADVANCING TOWARDS A NET ZERO WORLD 3.4.2
GHG emissions
3.1 ADVANCING TOWARDS A NET ZERO WORLD 3.1.4 Key climatechange metrics
APPENDIX 3.4 ADVANCING TOWARDS A NET ZERO WORLD 3.4.2
GHG emissions

GRI 11 Sector
standard code

Explanatory notes

11.1.711.1.811.2.3

3.2 MOVING FORWARD ON MINIMISING OUR ENVIRONMENTAL
IMPACT
305-7

Nitrogen oxides (NOX), sulfur oxides (SOX), and othersignificant air emissions

3.2.5 Continuous control of our air emissions

11.3.2

3.5 MOVING FORWARD ON MINIMISING OUR ENVIRONMENTAL
IMPACT 3.5.6 Continuous control of our air emissions
Safety3-3
403-1

Management of material topics - Safety

3.4 BECOMING A ZERO-ACCIDENT WORKPLACE. Safety

11.9.1

Occupational health and safety management system

3.4 BECOMING A ZERO-ACCIDENT WORKPLACE 3.4.2 Safety
management: commitment and best practices

11.9.2APPENDIX 3.7 BECOMING A ZERO-ACCIDENT WORKPLACE
403-2

403-3

Hazard identification, risk assessment, and incident
investigation

Occupational health services

3.4 BECOMING A ZERO-ACCIDENT WORKPLACE 3.4.2 Safety
management: commitment and best practices

11.9.3

APPENDIX 3.7 BECOMING A ZERO-ACCIDENT WORKPLACE
3.4 BECOMING A ZERO-ACCIDENT WORKPLACE 3.4.1 Creating asafety culture

11.9.4

APPENDIX 3.7 BECOMING A ZERO-ACCIDENT WORKPLACE
403-4

Worker participation, consultation, and communication on
occupational health and safety

3.3 READY FOR WORKPLACE CHANGE. 3.3.5 Social dialogue andlabour relations

11.9.5403-5Worker training on occupational health and safety

3.3 READY FOR WORKPLACE CHANGE 3.3.3 Learning culture

11.9.6403-6Promotion of worker health

3.4 BECOMING A ZERO-ACCIDENT WORKPLACE 3.4.1 Creating asafety culture

11.9.7APPENDIX 3.7 BECOMING A ZERO-ACCIDENT WORKPLACE
403-7

Prevention and mitigation of occupational health andsafety impacts directly linked by business relationships

APPENDIX 3.7 BECOMING A ZERO-ACCIDENT WORKPLACE

11.9.8403-8Workers covered by an occupational health and safety
management system

APPENDIX 3.7 BECOMING A ZERO-ACCIDENT WORKPLACE

11.9.9403-9Work-related injuries (no. of hours worked)

3.4 BECOMING A ZERO-ACCIDENT WORKPLACE 3.4.1 Creating asafety culture

11/09/2010

APPENDIX 3.7 BECOMING A ZERO-ACCIDENT WORKPLACE

284

CHAPTER 5 Appendix

GRI
standard Description

Reference in the Integrated Report403-10Work-related ill health

APPENDIX 3.7 BECOMING A ZERO-ACCIDENT WORKPLACE

416-1

Assessment of the health and safety impacts of productand service categories—

GRI 11 Sector
standard code

Explanatory notes

11/09/2011
11.3.3

We assess the health and safety impacts of all of
our significant product and service categories.

Management of water resources

3-3Management of material topics - Management of water
resources

3.2 MOVING FORWARD ON MINIMISING OUR ENVIRONMENTAL
IMPACT 3.2.2 Responsible water consumption
APPENDIX 3.5 MOVING FORWARD ON MINIMISING OURENVIRONMENTAL IMPACT 3.5.3 Responsible water consumption
3.2 MOVING FORWARD ON MINIMISING OUR ENVIRONMENTAL
IMPACT

11.6.1303-1Interactions with water as a shared resource

303-2

Management of water discharge-related impacts

3.5 MOVING FORWARD ON MINIMISING OUR ENVIRONMENTAL
IMPACT 3.5.3 Responsible water consumption

11.6.3303-3Water withdrawal

3.5 MOVING FORWARD ON MINIMISING OUR ENVIRONMENTAL
IMPACT 3.5.3 Responsible water consumption

11.6.4303-4Water discharge

3.5 MOVING FORWARD ON MINIMISING OUR ENVIRONMENTAL
IMPACT 3.5.3 Responsible water consumption

11.6.5303-5Water consumption

3.5 MOVING FORWARD ON MINIMISING OUR ENVIRONMENTAL
IMPACT 3.5.3 Responsible water consumption

11.6.6

3.5 MOVING FORWARD ON MINIMISING OUR ENVIRONMENTAL
IMPACT 3.5.3 Responsible water consumption

11.6.2Long-term business sustainability
1.1 TRANSFORMING OUR ENERGY BUSINESS

3-3

Management of material topics - Long-term businesssustainability

1.2 ACCELERATING VALUE CREATION ACROSS ALL OUR
BUSINESSES
2.2 OUR SUSTAINABILITY MANAGEMENT—APPENDIX 4. DETAILED INFORMATION ABOUT THE COMPANY’S
KEY RISKS
201-1

Direct economic value generated and distributed

APPENDIX 6. ADDITIONAL FINANCIAL INFORMATION 6.2 Valuegenerated and distributed

11.14.2

Diversity and equal opportunities
3-3Management of material topics - Diversity and equal
opportunities

3.3 READY FOR WORKPLACE CHANGE 3.3.2 A diverse andinclusive workplace

11.11.1

401-3

Parental leave

APPENDIX 3.6 CREATING A WORKPLACE READY FOR CHANGE
3.6.3 A diverse and inclusive workplace

11.10.4

405-1

Diversity of governance bodies and employees

APPENDIX 3.6 CREATING A WORKPLACE READY FOR CHANGE
3.6.1 Workforce overview

11.11.5405-2

Ratio of basic salary and remuneration of women to men

APPENDIX 3.6 CREATING A WORKPLACE READY FOR CHANGE
3.6.3 A diverse and inclusive workplace

11.11.6

406-1

Incidents of discrimination and corrective actions taken—

11.11.7

There were no incidents of discrimination in 2022
or 2021. Therefore, no corrective actions needed
to be taken.

285

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GRI
standard Description

Reference in the Integrated Report

GRI 11 Sector
standard code

Explanatory notes

Customer centricity
3-3Management of material topics - Customer centricity

1.3 OUR COMPANY 1.3.4 Sustainability, mobility and the customer
experience

416-1

Assessment of the health and safety impacts of productand service categories—

11.3.311.4.1—
We assess the health and safety impacts of all of
our significant product and service categories.

Biodiversity
3-3Management of material topics - Biodiversity

3.2 MOVING FORWARD ON MINIMISING OUR ENVIRONMENTAL
IMPACT 3.2.3 Biodiversity protection; 3.2.5 Continuous control of
our air emissions

304-1

Operational sites owned, leased, managed in, or adjacentto, protected areas and areas of high biodiversity value
outside protected areas

APPENDIX 3.5 MOVING FORWARD ON MINIMISING OURENVIRONMENTAL IMPACT 3.5.4 Biodiversity protection

11.4.2304-2

Significant impacts of activities, products, and services on
biodiversity

APPENDIX 3.5 MOVING FORWARD ON MINIMISING OURENVIRONMENTAL IMPACT 3.5.4 Biodiversity protection

11.4.3304-3

Habitats protected or restored

APPENDIX 3.5 MOVING FORWARD ON MINIMISING OURENVIRONMENTAL IMPACT 3.5.4 Biodiversity protection

11.4.4304-4

IUCN Red List species and national conservation list
species with habitats in areas affected by operations

APPENDIX 3.5 MOVING FORWARD ON MINIMISING OURENVIRONMENTAL IMPACT 3.5.4 Biodiversity protection

11.4.511.5.1

11.3.1

Circular economy
3-3Management of material topics - Circular economy

3.2 MOVING FORWARD ON MINIMISING OUR ENVIRONMENTAL
IMPACT 3.2.4 Making the business more circular

301-1

Materials used by weight or volume

APPENDIX 3.5 MOVING FORWARD ON MINIMISING OURENVIRONMENTAL IMPACT 3.5.5 Making the business more circular

—

301-2

Recycled input materials used

APPENDIX 3.5 MOVING FORWARD ON MINIMISING OURENVIRONMENTAL IMPACT 3.5.5 Making the business more circular

—

306-1

Waste generation and significant waste related impacts

3.2 MOVING FORWARD ON MINIMISING OUR ENVIRONMENTAL
IMPACT 3.2.4 Making the business more circular
APPENDIX 3.5 MOVING FORWARD ON MINIMISING OURENVIRONMENTAL IMPACT 3.5.5 Making the business more circular
3.2 MOVING FORWARD ON MINIMISING OUR ENVIRONMENTAL
IMPACT 3.2.4 Making the business more circular

11.5.2306-2Management of significant waste-related impacts

306-3

Waste generated

APPENDIX 3.5 MOVING FORWARD ON MINIMISING OURENVIRONMENTAL IMPACT 3.5.5 Making the business more circular

11.5.4306-3(2016)

Significant spills

APPENDIX 3.5 MOVING FORWARD ON MINIMISING OURENVIRONMENTAL IMPACT 3.5.5 Making the business more circular

11.8.2306-4

Waste diverted from disposal

APPENDIX 3.5 MOVING FORWARD ON MINIMISING OURENVIRONMENTAL IMPACT 3.5.5 Making the business more circular

11.5.5306-5Waste directed to disposal

APPENDIX 3.5 MOVING FORWARD ON MINIMISING OURENVIRONMENTAL IMPACT 3.5.5 Making the business more circular

11.5.6APPENDIX 3.5 MOVING FORWARD ON MINIMISING OURENVIRONMENTAL IMPACT 3.5.5 Making the business more circular

11.5.3286

CHAPTER 5 Appendix

GRI
standard Description

Reference in the Integrated Report

GRI 11 Sector
standard code

Explanatory notes

Human Rights

3-3Management of material topics - Human rights

407-1

Operations and suppliers in which the right to freedom of
association and collective bargaining may be at risk

408-1

Operations and suppliers at significant risk for incidents ofchild labor

3.3 READY FOR WORKPLACE CHANGE. 3.3.5 Social dialogue andlabour relations
APPENDIX 3.6 READY FOR WORKPLACE CHANGE. 3.6.6 Social
dialogue and labour relations——

11.13.1
11.18.1
11.12.1
11.13.2—

No operations or suppliers considered to be atsignificant risk for incidents of forced orcompulsory labour or of child labour were
uncovered during the routine assessment of risksof delivering the budget and business plan in
2022.
No operations or suppliers considered to be atsignificant risk for incidents of forced orcompulsory labour or of child labour were
uncovered during the routine assessment of risksof delivering the budget and business plan in
2022.

409-1

Operations and suppliers at significant risk for incidents offorced or compulsory labor—

11.12.2

410-1

Security personnel trained in human rights policies orprocedures

APPENDIX 3.9 BEHAVING ETHICALLY AND RESPECTFULLY 3.9.4
Human rights in security personnel

11.18.2

411-1

Incidents of violations involving rights of indigenous
peoples

None reported.

—

11.17.2

None of our operations are located on sites ofindigenous communities. There were no reports ofincidents of violations involving rights ofindigenous peoples. In line with our Community
Management Plan, we accept and embrace, in all
their actions, the Universal Declaration of Human
Rights and the Conventions of the International
Labour Organization (ILO). We also subscribe to
the Organization for Economic Co-operation andDevelopment (OECD) Guidelines, the United
Nations Global Compact and the Code of Good
Tax Practices issued by the Spanish Government.

Ethics and compliance
3-3Management of material topics - Ethics and compliance

3.6 BEHAVING ETHICALLY AND RESPECTFULLY 3.6.1 Ethics in our
day-to-day operations

11.20.1

205-1

Operations assessed for risks related to corruption

3.6 BEHAVING ETHICALLY AND RESPECTFULLY 3.6.1 Ethics in our
day-to-day operations

11.20.2

205-2

Communication and training about anti-corruption policies
and procedures

APPENDIX 3.9 BEHAVING ETHICALLY AND RESPECTFULLY 3.9.3
Anti-corruption effort

11.20.3

205-3

Confirmed incidents of corruption and actions taken—

11.20.4

No incidents of corruption arose in the company.

11.19.2

This year, the sanction for breach of the 2009
resolution of the Spanish National Markets andCompetition Commission (CNMC) was confirmed,
but the CNMC was required to recalculate theamount owing to an error in the based year used
to calculate the sanction.

206-1

Legal actions for anti-competitive behavior, anti-trust, andmonopoly practices—

287

CHAPTER 5 Appendix

GRI
standard Description

Reference in the Integrated Report

415-1

—

Political contributions

GRI 11 Sector
standard code

11.22.2

Explanatory notes
Cepsa's Code of Ethics and Conduct expressly
prohibits any kind of donations or any financial orin-kind contributions to political parties, public
entities and trade unions. The company has notmade any public contributions.

Cybersecurity
3-3Management of material topics - Cybersecurity

1.3 OUR COMPANY
1.3.6. Innovation, digitalisation and cybersecurity—

Employee well-being
3-3Management of material topics - Employee well-being

3.3 READY FOR WORKPLACE CHANGE 3.3.1 Talent with purpose;
3.3.4 Remuneration: competitiveness and engagement; 3.3.5 Social
dialogue and labour relations

401-2

Benefits provided to full-time employees that are notprovided to temporary or part-time employees

3.3 READY FOR WORKPLACE CHANGE 3.3.4 Remuneration:competitiveness and engagement—
11.10.3

Good governance
3-3Management of material topics - Good governance

2. CORPORATE GOVERNANCE—

2. GOOD GOVERNANCE 2.4 Risk management
207-2

Tax governance, control, and risk management

3.6 BEHAVING ETHICALLY AND RESPECTFULLY 3.6.3 Fiscal
transparency and responsibility

11.21.5

APPENDIX 4 DETAILED INFORMATION ABOUT RISKS
3.3 READY FOR WORKPLACE CHANGE
405-1

Diversity of governance bodies and employees

11.11.5
APPENDIX 3.6 CREATING A WORKPLACE READY FOR CHANGE
3.6.1 Workforce overview

Social commitment
3.7 LOCAL COMMUNITY RELATIONS

11.14.1

3-3

Management of material topics - Social commitment

202-2

Proportion of senior management hired from the local
community

203-1

Infrastructure investments and services supported

203-2

Significant indirect economic impacts

413-1

Operations with local community engagement, impact
assessments, and development programs

3.7 LOCAL COMMUNITY RELATIONS

11.15.2

413-2

Operations with significant actual and potential negative
impacts on local communities

APPENDIX 3.10 LOCAL COMMUNITY RELATIONS

11.15.3

3.8 POSITIVE IMPACT ON SOCIETY - CEPSA FOUNDATIONAPPENDIX 3.6 CREATING A WORKPLACE READY FOR CHANGE
3.6.2 A diverse and inclusive workplace

11.15.1
11.17.1
11.11.2

APPENDIX 3.10 LOCAL COMMUNITY RELATIONSAPPENDIX 3.11 POSITIVE IMPACT ON SOCIETY - CEPSAFOUNDATION
3.7 LOCAL COMMUNITY RELATIONS
3.8 POSITIVE IMPACT ON SOCIETY - CEPSA FOUNDATION

11.14.4

11.14.5

288

CHAPTER 5 Appendix

GRI
standard Description

Reference in the Integrated Report

GRI 11 Sector
standard code

Explanatory notes

Tax transparency
3-3Management of material topics - Tax transparency

3.6 BEHAVING ETHICALLY AND RESPECTFULLY 3.6.3 Fiscal
transparency and responsibility

11.21.1

201-4

Financial assistance received from government—

11.21.3

207-1

Approach to tax

3.6 BEHAVING ETHICALLY AND RESPECTFULLY 3.6.3 Fiscal
transparency and responsibility

11.21.4

Financial assistance received from government in
2022 and 2021 amounted to €11.3 million and€25.3 million, respectively.

APPENDIX 7. Country-by-country reporting of taxes
207-3

Stakeholder engagement and management of concerns
related to tax

3.6 BEHAVING ETHICALLY AND RESPECTFULLY 3.6.3 Fiscal
transparency and responsibility

11.21.6

207-4

Country-by-country reporting

APPENDIX 7. Country-by-country reporting of taxes

11.21.7

Innovation, technology and digitalisation
3-3Management of material topics - Innovation, technology
and digitalisation

1.3 OUR COMPANY
1.3.6. Innovation, digitalisation and cybersecurity—

Sustainable supply chain
3-3Management of material topics - Sustainable supply chain

3.5 FACILITATING A SUSTAINABLE SUPPLY CHAIN
3.5 FACILITATING A SUSTAINABLE SUPPLY CHAIN 3.5.2 Our
supply chain

—

204-1

Proportion of spending on local suppliers

308-1

New suppliers that were screened using environmental
criteria

APPENDIX 3.8 FACILITATING A SUSTAINABLE SUPPLY CHAIN

—

414-1

New suppliers that were screened using social criteria

APPENDIX 3.8 FACILITATING A SUSTAINABLE SUPPLY CHAIN
3.8.2 Supplier relations

11.10.8

414-2

Negative social impacts in the supply chain and actions
taken

APPENDIX 3.8 FACILITATING A SUSTAINABLE SUPPLY CHAIN
3.8.1 Description of the supply chain

11.14.6

3.5 FACILITATING A SUSTAINABLE SUPPLY CHAIN
APPENDIX 3.8 FACILITATING A SUSTAINABLE SUPPLY CHAIN
3.8.2 Supplier relations

11.10.9

Stakeholder engagement
3-3Management of material topics - Stakeholder engagement 2.5 PROACTIVE STAKEHOLDER ENGAGEMENT

11.22.1

413-1

Operations with local community engagement, impact
assessments, and development programs

3.7 LOCAL COMMUNITY RELATIONS

11.15.2

Management of material topics - Talent management

3.3 READY FOR WORKPLACE CHANGE 3.3.1 Talent with purpose

11.10.1

401-1

New employee hires and employee turnover

APPENDIX 3.6 CREATING A WORKPLACE READY FOR CHANGE
3.6.1 Workforce overview

11.10.2

402-1

Minimum notice periods regarding operational changes

3.3 READY FOR WORKPLACE CHANGE 3.3.5 Social dialogue andlabour relations

11.10.5

Talent management
3-3

289

CHAPTER 5 Appendix

GRI
standard Description

Reference in the Integrated Report

404-1

Average hours of training per year per employee

APPENDIX 3.6 CREATING A WORKPLACE READYFOR CHANGE 3.6.4 Learning culture

404-2

Programs for employee upskilling and transition
assistance programs

GRI 11 Sector
standard code

Explanatory notes

11.10.6

3.3 READY FOR WORKPLACE CHANGE
APPENDIX 3.6 CREATING A WORKPLACE READY FOR CHANGE
3.6.1 Workforce overview 3.6.4 Learning culture

11.10.7290

CHAPTER 5 Appendix

SASB content index
Indicator

Description

EM-EP-110a.1

305-1 (partial)

Section201-2

APPENDIX 3.4 ADVANCING TOWARDS ANET ZERO WORLD 3.4.2 GHG emissions

11.1.5 (partial)

APPENDIX 3.4 ADVANCING TOWARDS ANET ZERO WORLD 3.4.2 GHG emissions

Discussion of long-term and short-term strategy or plan to manage Scope
1 emissions, emissions reduction targets, and an analysis of performanceagainst those targets

201-2

3. DRIVING POSITIVE IMPACT 3.1
ADVANCING TOWARDS A NET ZEROWORLD

RT-CH-130a.1

1) Total energy consumed, (2) percentage grid electricity, (3) percentage
renewable, (4) total self-generated energy

302-1 (partial)

APPENDIX 3.4 ADVANCING TOWARDS ANET ZERO WORLD 3.4.1 Energy
consumption

EM-RM-410a.1

Percentage of Renewable Volume Obligation (RVO) met through: (1)production of renewable fuels, (2) purchase of “separated” renewable
identification numbers (RIN)302-5

APPENDIX 3.4 ADVANCING TOWARDS ANET ZERO WORLD 3.4.3 RenewableenergyEM-EP-420a.2

Estimated carbon dioxide emissions embedded in proved hydrocarbon
reserves

EM-RM-110a.1

Gross global Scope 1 emissions, percentage covered under emissionslimiting regulations

Associated GRI indicator

RT-CH-110a.1
EM-EP-110a.2
EM-EP-110a.3
EM-RM-110a.2
RT-CH-110a.2

EM-EP-120a.1
EM-RM-120a.1
RT-CH-120a.1
EM-RM-120a.2

Amount of gross global Scope 1 emissions from: (1) flared hydrocarbons,(2) other combustion, (3) process emissions, (4) other vented emissions,and (5) fugitive emissions

305-1
305-2

APPENDIX 3.4 ADVANCING TOWARDS ANET ZERO WORLD 3.4.2 GHG emissions

Air emissions of the following pollutants: (1) NOX (excluding N2O), (2) SOX,(3) volatile organic compounds (VOCs), and (4) hazardous air pollutants(HAPs)

305-7

APPENDIX 3.2.3.4 ADVANCINGTOWARDS A NET ZERO WORLD 3.2.6
Continuous control of our air emissions

Number of refineries in or near areas of dense population.

—

APPENDIX 3.5 MOVING FORWARD ON
MINIMISING OUR ENVIRONMENTAL
IMPACT 3.5.4 Biodiversity protection(1) Total fresh water withdrawn, (2) percentage recycled, (3) percentage inregions with High or Extremely High Baseline Water Stress

303-3

EM-EP-140a.1
RT-CH-140a.1

305-5

EM-RM-140a.1

303-5

APPENDIX 3.5 MOVING FORWARD ON
MINIMISING OUR ENVIRONMENTAL
IMPACT 3.5.3 Responsible water
consumption

Volume of produced water and flowback generated; percentage (1)discharged, (2) injected, (3) recycled; hydrocarbon content in discharged
water

11.6.5 (partial)

APPENDIX 3.5 MOVING FORWARD ON
MINIMISING OUR ENVIRONMENTAL
IMPACT 3.5.3 Responsible water
consumption

RT-CH-140a.2

Number of incidents of non-compliance associated with water quality
permits, standards, and regulations

2-27 (partial)

APPENDIX 3.5 MOVING FORWARD ON
MINIMISING OUR ENVIRONMENTAL
IMPACT 3.5.3 Responsible water
consumption

RT-CH-140a.3

Description of water management risks and discussion of strategies andpractices to mitigate those risks

303-1 (partial)

APPENDIX 3.5 MOVING FORWARD ON
MINIMISING OUR ENVIRONMENTAL
IMPACT 3.5.3 Responsible water
consumption

EM-EP-140a.3

Percentage of hydraulically fractured wells for which there is public
disclosure of all fracturing fluid chemicals used——

EM-EP-140a.2

EM-RM-140a.2

Explanatory notes

Cepsa does not employ hydraulic fracturing
techniques.

291

CHAPTER 5 Appendix

Indicator

Description

EM-EP-140a.4

Percentage of hydraulic fracturing sites where ground or surface water
quality deteriorated compared to a baseline

SectionExplanatory notes——

Cepsa does not employ hydraulic fracturing
techniques.

Amount of hazardous waste generated, percentage recycled

306-2

APPENDIX 3.5 MOVING FORWARD ON
MINIMISING OUR ENVIRONMENTAL
IMPACT 3.5.5 Making the business morecircular

EM-EP-160a.1

Description of environmental management policies and practices for active
sites

3-3 Management ofmaterial topics - Climatechange and energy
3.2 MOVING FORWARD ON MINIMISING
transition; water
OUR ENVIRONMENTAL IMPACT
resources; circular
economy; biodiversity

EM-EP-160a.2

Number and aggregate volume of hydrocarbon spills, volume in Arctic,
volume impacting shorelines with ESI rankings 8-10, and volume recovered

306-3

—

EM-EP-160a.3

Percentage of (1) proved and (2) probable reserves in or near sites withprotected conservation status or endangered species habitat

304-1 (partial)

APPENDIX 3.5 MOVING FORWARD ON
MINIMISING OUR ENVIRONMENTAL
IMPACT 3.5.4 Biodiversity protection

EM-EP-210a.1

Percentage of (1) proved and (2) probable reserves in or near areas ofconflict

11.17.3 (partial)—

In 2021 and 2022, 0% of proved and probablereserves were in or near areas of conflict.

EM-EP-210a.2

Percentage of (1) proved and (2) probable reserves in or near indigenous
land

11.17.3 (partial)—

In 2021 and 2022, 0.2% of proved reserves and
0.1% of probable reserves were in or near areasof indigenous land.

EM-RM-150a.1
RT-CH-150a.1

Associated GRI indicator

There were no spills or discharges in the Arctic orshoreline in the 2018-2020 period.

203-1
RT-CH-210a.1
EM-EP-210b.1

Discussion of process to manage risks and opportunities associated with
community rights and interests(partial),
413-1

3.7 LOCAL COMMUNITY RELATIONS(partial)
EM-EP-210a.3

Discussion of engagement processes and due diligence practices withrespect to human rights, indigenous rights, and operation in areas ofconflictManagement of material
topics - Human rights

3.6 BEHAVING ETHICALLY ANDRESPECTFULLY 3.6.2 Human rights

EM-EP-210b.2

Number and duration of non-technical delays——

There were no non-technical delays in 2022. In
2021, there was a non-technical delay that lasted
45 days.

EM-EP-320a.1

403-5

3.4 BECOMING A ZERO-ACCIDENT
WORKPLACE

Additionally:

RT-CH-320a.1(1) TTotal recordable incident rate (TRIR), (2) fatality rate, (3) near missfrequency rate (NMFR), and (4) average hours of health, safety, andemergency response training for (a) full-time employees, (b) contract
employees, and (c) short-service employees

403-9

APPENDIX 3.7 BECOMING A ZEROACCIDENT WORKPLACE 3.7.1 Workrelated injuries

Average employee safety training was 10 hours
per employee in 2022 and nine hours per
employee in 2021.

EM-RM-320a.2

Discussion of management systems used to integrate a culture of safety

403-1

3.4 BECOMING A ZERO-ACCIDENT
WORKPLACE

RT-CH-410a.1

Revenue from products designed for use-phase resource efficiency

302-5

APPENDIX 6. ADDITIONAL FINANCIAL
INFORMATION 6.3 Additional activity
metrics

RT-CH-410b.1.

1) Percentage of products that contain Globally Harmonized System ofClassification and Labeling of Chemicals (GHS) Category 1 and 2 Healthand Environmental Hazardous Substances, (2) percentage of suchproducts that have undergone a hazard assessment

EM-RM-320a.1——

According to the Chemical Safety Assessment
and Reporting (CHESAR) tool, 90% of products
from the Chemicals business in 2022 and 2021
contained health and environmental hazardous
substances. All of these products underwent arisk assessment.

292

CHAPTER 5 Appendix

Indicator

Description

RT-CH-410b.2

Discussion of strategy to (1) manage chemicals of concern and (2) develop
alternatives with reduced human and/or environmental impact

RT-CH-410c.1

SectionExplanatory notes——

The Chemical Safety Assessment and Reporting(CHESAR) tool is used for this discussion.

Percentage of products by revenue that contain genetically modified
organisms (GMOs)——

We do not have any products that containgenetically modified organisms.

EM-EP-420a.3

Amount invested in renewable energy, revenue generated by renewableenergy sales

11.2.2 (partial)—

Revenue generated by renewable energy sales
for the Company as a whole amounted to €8,483
thousand.

EM-EP-510a.1

Percentage of (1) proved and (2) probable reserves in countries that havethe 20 lowest rankings in Transparency International’s Corruption
Perception Index

3-3 (partial)—

No proved or probable reserves were in thesecountries in 2021 and 2022.

EM-EP-510a.2

EM-EP-510a.2. Description of the management system for prevention ofcorruption and bribery throughout the value chain

3-3 (partial)

3. DRIVING POSITIVE IMPACT 3.9
BEHAVING ETHICALLY ANDRESPECTFULLY 3.6.1 Ethics in our dayto-day operations

EM-RM-520a.1

Total amount of monetary losses as a result of legal proceedings
associated with price fixing or price manipulation——

Discussion of corporate positions related to government regulations and/or
policy proposals that address environmental and social factors affecting
the industry—

3. DRIVING POSITIVE IMPACT 3.1
ADVANCING TOWARDS A NET ZEROWORLD

EM-RM-540a.1

Process Safety Event (PSE) rates for Loss of Primary Containment (LOPC)of greater consequence (Tier 1)—

APPENDIX 3.7 BECOMING A ZEROACCIDENT WORKPLACE 3.7.2 Processincidents

RT-CH-540a.1

Process Safety Incidents Count (PSIC), Process Safety Total Incident Rate
(PSTIR), and Process Safety Incident Severity Rate (PSISR)—

APPENDIX 3.7 BECOMING A ZEROACCIDENT WORKPLACE 3.7.2 Processincidents

EM-RM-540a.2

Challenges to Safety Systems indicator rate (Tier 3)—

APPENDIX 3.7 BECOMING A ZEROACCIDENT WORKPLACE 3.7.2 Processincidents

RT-CH.540a.2

Operational safety, emergency preparedness and response—

APPENDIX 3.7 BECOMING A ZEROACCIDENT WORKPLACE 3.7.2 Processincidents

EM-EP-540a.2

Description of management systems used to identify and mitigate
catastrophic and tail-end risks

403-2

APPENDIX 3.7 BECOMING A ZEROACCIDENT WORKPLACE 3.7.1 Workrelated injuries

EM-RM-540a.3

Discussion of measurement of Operating Discipline and Management
System Performance through Tier 4 Indicators—

APPENDIX 3.7 BECOMING A ZEROACCIDENT WORKPLACE 3.7.2 Processincidents

EM-RM.000.A

The total volume of crude oil and other feedstocks processed in therefinery system during the reporting period—

4. FINANCIAL AND BUSINESSPERFORMANCE 4.2 Key financial andbusiness indicators

EM-EP-000A

Production of: (1) oil, (2) natural gas, (3) synthetic oil, and (4) synthetic gas—

4. FINANCIAL AND BUSINESSPERFORMANCE 4.2 Key financial andbusiness indicators

RT-CH-000A

Production by reportable segment—

APPENDIX 6. ADDITIONAL FINANCIAL
INFORMATION 6.3 Additional activity
metrics

EM-RM.000B

Refining operating capacity——

EM-EP-530a.1
EM-RM-530a.1
RT-CH-530a.1
EM-EP-540a.1

Associated GRI indicator

There were no monetary losses as a result of thistype of legal proceedings in 2021 and 2022.

491 kbbl/d293

CHAPTER 5 Appendix

Indicator

Description

Associated GRI indicator

SectionExplanatory notes

EM-EP-000B

Number of offshore sites—

2 offshore sites, understood by location of thevarious blocks meaning the different operated
and non-operated blocks where the Company has
a presence.

EM-EP-000C

Number of terrestrial sites—

8 terrestrial sites, understood by location of thevarious blocks meaning the different operated
and non-operated blocks where the Company has
a presence.

294Afk CEPSR

Compania Espariola de Petroleos, S.A. and Subsidiaries (Cepsa Group)
Consolidated Financial Statements and Integrated Management Report — 2022 Financial YearI hereby certify that, to the best of my knowledge and belief, the Consolidated Financial Statements(Balance Sheets, Income Statements, Statements of Changes in Equity, Statement of Comprehensive
Income recognized in Equity, Cash Flow Statements and Notes to the Financial Statements), along with theIntegrated Management Report of Compania Espanola de PetrOleos, S.A. and Subsidiaries (CEPSA Group)for 2022 and drafted and approved by the Board of Directors of Compaiiia Espanola de Petroleos, S.A. at
its meeting held on 2 March 2023, were prepared in accordance with generally applicable accounting
standards and present a true and fair view of the assets and liabilities, financial position and results of
Cepsa.

Madrid, 2 March 2023

Carmen Angela de Pablo Redondo
Chief Financial Officer

CEPSA GroupCEPSRCOMPANIA ESPAROLA DE PETROLEOS, S.A. AND SUBSIDIARIES (CEPSA GROUP)
Consolidated Financial Statements and Consolidated Management Report for the year ended
December 31, 2022
The Consolidated Financial Statements (Consolidated Balance Sheets, Consolidated Statements of Income,Consolidated Statements of Changes in Equity, Consolidated Cash Flow Statements and Notes to theConsolidated Financial Statements) and Consolidated Management Report which includes the Consolidated
Non-Financial Information Statement of Compalifa Espanola de Petroleos, S.A. and Subsidiaries (CEPSA Group),
for the year ended December 31, 2022, contained in this document, have been adopted and issued by the
Board of Directors of Connpaiiia Espanola de Petroleos, S.A. (CEPSA) at its meeting held on March 2, 2023 incompliance with Article 253 of the Spanish Companies Act in force.
To the best of our knowledge, the Consolidated Financial Statements, prepared in accordance with generally
accepted accounting principles, offer a true and fair view of the financial situation and results of the CEPSA
Group, and the Consolidated Management Report, which includes the Consolidated Non-Financial Information
Statement, accompanying the Consolidated Financial Statements offers a true and fair view of the development
and performance of the businesses and financial position of the CEPSA Group, together with a description of
the key risks and uncertainties that it faces.

Madrid, March 2, 2023

Mr. Ahmed Yahia
Chairman

17r. Martialis Quirinus Henricus van Poecke
Vice Chairman

Mr. Maarten Wetselaar
Managing Director

Mr. Gregory Mark Nikodem
Director

Mr. Angel Corcostegui Guraya
Director

Mr. Saeed Mohamed Hamad Fares Almazrouei
Director

Cepsa GroupCEPSR

oilwar,4,11

Ms. Alyazia Ali Saleh Ahmed Alkuwaiti
Director

Mr. Marwan Naim Nijmeh
Director

Mr. James Ro
Director

Mr. Jacob Schram
Director

aguireE

Mr. Jorgthrristian Haring
Corporate Secretary (Non-Director)

Cepsa GroupMr. Jose Aurelio Tellez Menchen
Corporate Deputy Secretary (Non-Director)

Compallia Espanola dePetreileos, S.A. andSubsidiaries
Independent limited assurance reporton the consolidated non-financial
information statement of Compania
Espanola de Petroleos, S.A. andsubsidiaries for 2022

Deloitte.

Deloitte, S.L.
Plaza Pablo Ruiz Picasso, 1
Torre Picasso
28020 Madrid
EspanaTel: +34 915 14 50 GO
wwvv.deloitte.es

Translation of a report originally issued in Spanish. In the event of a discrepancy, the Spanishlanguage version prevails.
INDEPENDENT LIMITED ASSURANCE REPORT ON THE CONSOLIDATED NONFINANCIAL INFORMATION STATEMENT OF COMPAN1A ESPANOLA DEPETROLEOS, S.A. AND SUBSIDIARIES FOR 2022

To the Shareholders of Comparila Espanola de Petroleos, S.A.,
In accordance with Article 49 of the Spanish Commercial Code, we have performed theverification, with a scope of limited assurance, of the Consolidated Non-Financial Information
Statement ("NFIS") for the year ended 31 December 2022 of Compania Espanola de Petroleos,
S.A. and subsidiaries ("the Group"), which forms part of the accompanying Consolidated
Directors'Report of the Group.
The content of the Consolidated Directors' Report includes information, additional to that
required by current Spanish corporate legislation relating to non-financial reporting, that was not
the subject matter of our verification. In this regard, our work was limited solely to verification of
the information identified in the "Spanish Law 11/2018 and GRI Cross-Reference Table" in theaccompanying Consolidated Directors'Report.
Responsibiliticb of the Diret.moiS
The preparation and content of the NFIS included in the Group's Consolidated Directors'Report
are the responsibility of the Board of Directors of Compania Espanola de Petroleos, S.A. The NFIS
was prepared in accordance with the content specified in current Spanish corporate legislation
and with the criteria of the selected Global Reporting Initiative Sustainability Reporting Standards(GRI standards), as well as other criteria described as indicated for each matter in the "Spanish
Law 11/2018 and GRI Cross-Reference Table" of the aforementioned Consolidated Directors'
Report.
These responsibilities of the Board of Directors also include the design, implementation andmaintenance of such internal control as is determined to be necessary to enable the NFIS to be
free from material misstatement, whether due to fraud or error.
The directors of Compania Espanola de Petroleos, S.A. are also responsible for defining,
implementing, adapting and maintaining the management systems from which the informationnecessary for the preparation of the NFIS is obtained.

De'oitte, S.L. Inscrita en el Registro Mercantil de Madrid, torso 13.650, seccion 8a, folio 188, hoja M-54414, inscripcidn 96'. C.I.F.: 8-79104469. Domicilio social: Plaza
Pablo Ruiz Picasso, 1, Torre Picasso, 28020, Madrid.

Our Independence and Quality Control
We have complied with the independence and other ethical requirements of the International
Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (including
the standards on independence), which is based on fundamental principles of integrity,
objectivity, professional competence and due care, confidentiality and professional behaviour.
Our firm applies international standards on quality in force and, accordingly, maintains a systemof quality control including policies and procedures regarding compliance with ethicalrequirements, professional standards and applicable legal and regulatory requirements.
Our engagement team consisted of professionals who are experts in reviews of non-financial
information and, specifically, in information about economic, social and environmental
performance.
Our Kesponsiourty
Our responsibility is to express our conclusions in an independent limited assurance report basedon the work performed. We conducted our work in accordance with the requirements establishedin International Standard on Assurance Engagements (ISAE) 3000 Revised, Assurance
Engagements other than Audits or Reviews of Historical Financial Information ("ISAE 3000
Revised"), currently in force, issued by the International Auditing and Assurance Standards Board(IAASB) of the International Federation of Accountants (IFAC), and with the guidelines publishedby the Spanish Institute of Certified Public Accountants on attestation engagements regarding
non-financial information statements.
The procedures performed in a limited assurance engagement vary in nature and timing from,and are less in extent than for, a reasonable assurance engagement and, consequently, the levelof assurance provided is substantially lower.
Our work consisted of making inquiries of management and the various units of Compaiiia
Espanola de Petroleos, S.A. that participated in the preparation of the NFIS, reviewing theprocesses used to compile and validate the information presented in the NFIS, and carrying out
the following analytical procedures and sample-based review tests:
2'

Meetings held with Group personnel to ascertain the business model, policies andmanagement approaches applied, and the main risks relating to these matters, and to obtain
the information required for the external review-2-Analysis of the scope, relevance and completeness of the contents included in the 2022 NFIS
based on the materiality analysis performed by the Group and described in the "Appendix 2.
Materiality" section, taking into account the contents required under current Spanish
corporate legislation.
▪ Analysis of the processes used to compile and validate the data presented in the 2022 NFIS.
•

Review of the information relating to risks and the policies and management approaches
applied in relation to the material matters presented in the 2022 NFIS.

•

Verification, by means of sample-based review tests, of the information relating to thecontents included in the 2022 NFIS, and the appropriate compilation thereof based on thedata furnished by information sources.

•

Obtainment of a representation letter from the Directors and management.

Conclusion
Based on the procedures performed in our verification and the evidence obtained, nothing hascome to our attention that causes us to believe that the Group's NFIS for the year ended 31
December 2022 was not prepared, in all material respects, in accordance with the content
specified in current Spanish corporate legislation and with the criteria of the selected GRI
standards, as well as other criteria described as indicated for each matter in the "Spanish Law
11/2018 and GRI Cross-Reference Table" of the aforementioned Consolidated Directors' Report.

Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on theestablishment of a framework to facilitate sustainable investment establishes the obligation todisclose information on how and to what extent the activities of certain companies, mainly public
interest entities, are associated with aligned economic activities in relation to the climate change
mitigation and climate change adaptation objectives for the first time for 2022, in addition to theinformation referring to eligible activities required in 2021. Although, as established in "Appendix
1. About this Report" and in "Appendix 3.1. EU Taxonomy", the Group is not subject to thisRegulation it has decided to present the information required by the Regulation for 2022 on a
voluntary basis. As a result, the accompanying NFIS does not include comparative information in
relation to eligibility and alignment.

-3 -In addition, it should be noted that the directors of Compaiiia Espanola de Petroleos, S.A. haveincluded information on the criteria which, in their opinion, best enable them to comply with theaforementioned obligations and which are defined in "Appendix 3.1. EU Taxonomy" in theaccompanying NFIS. Our conclusion is not modified in respect of this matter.
Use and Distribution
This report has been prepared in response to the requirement established in corporate legislation
in force in Spain and, therefore, it might not be appropriate for other purposes or jurisdictions.
DELOITTE, S.L.

Ls-----vier Me
no Dominguez-----/2 March 2023/

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