The process of materiality, step by step
-
1Analysis and relationship with stakeholders
-
2
Identification of potentially material topics and associated impacts
-
3
Prioritization of material topics
-
4
Building the materiality matrices
-
5
Validation of results, communication and integration into the Sustainability Strategy
Analysis and relationship with stakeholders
In 2023, the stakeholder map was revised. It is structured into 9 groups, which are then subdivided into 45 categories. To determine which stakeholder carries the most weight for Repsol, a ranking was conducted based on the criteria of power and interest in the Company.
Repsol stakeholder map
Periodic review in collaboration with stakeholder management areas
How we relate
At Repsol, the relationship is both direct and indirect and we work to identify the preferred channels for each stakeholder
Shareholders and financial community
Results presentations, Senior management roadshows, Events (AGM, Low Carbon Day)
Customers
Commercial network, specialized events and trade fairs
Television, social networks and Repsol website
Society
Social programs
Grievance mechanisms
Televisión, social networks and Repsol website
Regulatory bodies and institutions
Forums, seminars and conferences
Digital apps (webinars, etc)
Repsol website (queries mailbox)
People in the organization
Presentations or events
Intranet and e-mail
Trade union representatives
Media and opinion formers
Press releases Specific interviews
Repsol website and Trade union representatives
Companies and business associations
Trade negotiations
Seminars and conferences
Sector associations (OGCI, etc.)
Suppliers and partners
Trade negotiations
Trade fairs, forums and conferences
Digital platforms
Research center
Conferences
Digital platforms
Seminars and conferences
How we add value at Repsol(1)(2)
Climate change
The energy transition is the central pillar of the company's strategy: commitment to have net zero emissions by 2050. Carbon Intensity Indicator (CII) targets for 2030, 2040 and 2050.
Ethics and transparency
Comprehensive compliance management model. Rejection of all forms of corruption and commitment to compliance with anti-trust regulations. Governance system established in accordance with national and international best practices and standards.
Natural capital
Priority is given to minimizing potential impacts. Circular economy, biodiversity and water management strategy. Targets defined in the Sustainability Plans for 2025.
Human Capital
Work environment based on equal opportunity, diversity and inclusion. Targets in the Sustainability Plans for 2025. Commitment to safety is embedded in the culture of the organization. It ensures spill management, process safety, and crisis and emergency management.
Commitment to society
Policies and regulations aligned with the UN United Nations Guiding Principles on Business and Human Rights. Targets in the Sustainability Plans for 2025.
Managing the value chain
Innovation and research in technologies to develop sustainable products. Managing the safety of products and services throughout the life cycle.
Identification of potentially material topics and associated impacts
A list of 21 material topics was defined, with each one having a positive impact and a negative impact. The list is separated into 3 dimensions (environmental, social and governance) and includes sustainability issues with the potential to generate challenges and opportunities, both in the Company and among its stakeholders.
To draw up this list, the opinion of a panel of experts within Repsol was obtained and the specific context of the company, as well as current and future trends in sustainability were analyzed.
Prioritization of material topics
Material topics are prioritized by applying the concept of ‘double materiality’ set out in Article 1 of Directive 2014/95/ EU on disclosure of non-financial information. Financial materiality is based on expert judgment and takes the Company’s risk analysis as reference, among others.
To prioritize issues, the positive and negative impacts associated with each one are assessed, and an aggregation is subsequently carried out according to material topic. Impact materiality is mainly determined by using the results obtained after performing the assessment through the monitoring channels. Said results are weighted taking into consideration the stakeholder ranking that was conducted with the power-interest matrix. In 2023, surveys (>2,800) were used as a monitoring channel to collect the information provided by the stakeholders. The response rate was 38%.
Building the materiality matrices
To define the double materiality matrix, the results obtained for the financial materiality are transferred to the X axis, and the results of the impact materiality are transferred to the Y axis. To identify the material topics, thresholds for categorizing the most significant or material topics are established. After applying them in 2023, 21 material topics were identified. As in the previous year, a global matrix and 9 specific stakeholder matrices were obtained.
Validation of results, communication and integration into the Sustainability Strategy
The results of the materiality assessment are evaluated by a committee of experts comprising risk, reputation and sustainability specialists, and said results are then presented to the Executive Committee, which is responsible for validating them. The resulting materiality is then integrated into the Sustainability Strategy and implemented through the Global Plan and local sustainability plans.
The actions envisioned in these plans, both locally and globally, are aimed at improving performance and minimizing the impact of the identified sustainability risks. This makes it possible to think strategically and make decisions to evolve the business model to ensure economic, environmental and social sustainability.
