65

2021 INTEGRATED MANAGEMENT REPORT

We materialise our commitment to contribute to climate change mitigation through the Carbon Cycle Panel, an interdisciplinary group responsible for assessing and integrating the best technologies in our processes and developing more sustainable products.

This commitment is reflected in the approval of our Climate Action Policy setting out the parameters that guide our strategy and business model to address the energy transition and help build a low-carbon economy.

CLIMATE CHANGE MANAGEMENT AND FINANCIAL IMPACT

As we are aware of the significance of climate change performance to our investors and other stakeholders, we analysed our climate change management and financial impact reporting following the Recommendations of the Task-Force on Climate- related Financial Disclosures (TCFD) so as to identify the gap with industry best practice. The current report includes some of the recommendations arising from this analysis, while the reporting of the financial impact under our company s long-term climate scenarios is planned for 2022.

Through our involvement in the CDP Climate Change initiative, we also report on the climate change management practices implemented and the associated main performance indicators.

3.1.1 Management approach

3.1.2 Climate change governance

CDP note

Climate change entails various risks and opportunities for the company's activities and businesses. To ensure proper oversight, within the framework of the company's governance model, specifically our ESG governance described previously, specific responsibilities are attributed to the highest governance bodies and committees.

The Board of Directors is responsible for approving our strategic climate change objectives. The Board committees (Strategy and Sustainability Committee, Nomination and Compensation Committee, and Audit, Compliance, Ethics and Risk Committee) are responsible for overseeing climate change management, monitoring climate risks, among others, compliance with applicable rules and regulations, and the link between climate objectives and management remuneration.

The Management Committee is responsible for decision-making and resource allocation while monitoring the company's performance in relation to the corporate climate change strategy.

The Carbon Cycle Department, which is part of the ESG Department, is responsible for driving the company's climate change strategy. The Carbon Cycle Panel, formed by an interdisciplinary, cross-organisational team, is primarily in charge of reviewing all opportunities to cut direct CO2 emissions and achieving a significantly lower level of emissions in the course of business, as well as being part of the ESG Steering Team.

We maintained our A-rating in the 2021 CDP Climate Change initiative.A-

2.9.2. Governance and ESG

management

We have also developed a governance model that assigns specific responsibilities to various bodies and committees at the highest level of company governance.