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Cepsa acknowledges the importance of reporting how we manage our activities contribution to climate change. In 2018, we therefore began disclosing our perfor-

mance in this regard as per the four pil- lars of the Task Force on Climate-Relat- ed Financial Disclosures (TCFD). We have pledged to do the same for 2019.

Climate change-related matters are dealt with by the Risk Control Operating Com-

mittee and handled at the highest level by our senior management.

We have a Short-term Carbon Strategy which is founded on global fi nancial plan- ning and an analysis of risks and opportu- nities over a fi ve-year period. This strat- egy draws on our principles concerning sustainability: awareness of our environ- mental footprint as a transparency objec- tive and commitment to reduce this foot- print as a measurable objective. We have two main levers to achieve this, which we refer to as Boosting effi ciency and Ex- ploiting change. We focus our efforts on effi ciently using the energy and re- sources we employ in all our business units and operations. We have set our- selves the goal to slash CO2 emissions by 170 thousand tonnes from our base year: 2015. This objective will be achieved by rolling out effi ciency plans at the Refi ning and Chemical business units in Europe. In 2018, we also set a CO2 emissions ra- tio target in our performance-related pay criteria.

Several milestones were reached this year in this regard. These included: re- newing ISO 14064 accreditation for our assets and those of the Exploration and

Production business unit; including within the scope of this certifi cation a new asset in this business line to demonstrate our pledge to certify 100% of our emissions; and starting construction of our fi rst wind farm, which symbolizes the transforma- tion in how we source energy.

Also in accordance with our sustaina- bility principles, we worked throughout 2018 to defi ne a road map and basis for performing Long-term Carbon Strategy Analysis. This analysis will enable us to push ahead with establishing a road map towards a low-carbon business by setting a CO2 abatement goal at company level and in terms of emissions intensity. This will make us more resilient to climate change and the various risks analysed.

This Long-term Carbon Strategy has been drawn up at the same time as a RCFD climate report. We understand that an ambitious Low Carbon Business Tran- sition Plan aligned with the COP 21 tar- gets must be followed up with fi nancial analysis of long-term risks and opportu- nities in various scenarios.

CLIMATE CHANGE

Governance

Strategy

GOVERNANCE

METRICS RISKS AND OPPORTUNITIES

STRATEGY

CHAPTER 5 Our responsible management in 2018 Environment

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