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2021 INTEGRATED MANAGEMENT REPORT

We have approved the new 'Sustainable Procurement Policy', in which we set out our commitment to promote responsible and sustainable management best practices in the purchasing and contracting of goods and services. The aim is to avoid and mitigate potential adverse environmental, social and economic impacts. We have also revised our 'Supplier Code of Ethics and Conduct', reinforcing the commitment to ethics and the transmission of the company's values throughout the supply chain. Both documents have been disseminated to over 9,000 suppliers.

Our approach to procurement is designed to meet our business needs, thanks to the work of specialised managers, and to tighten relationships between our suppliers and the businesses. We also adapt and standardise our purchasing practices to comply with re- gulations in each country in which we operate. We implement unique global systems across the entire procurement cycle to enhance automation, traceability and transparency.

This model is centralised and unified, allowing for the simplification of processes and maximisation of efficiency through planning and early involvement in new projects. So we can deliver on commitments, satisfying all those involved.

EXCELLENCE IN PROCUREMENT MANAGEMENT

Purchasing excellence is certified under the UNE 15896 Standard on Value Added Purchasing Management and has been audited under ISO 9001, 14001, 50001, EFQM, ISO 45001 and other standards applicable to our management system.

INTEGRATING ESG ASPECTS IN DECISION-MAKING

We have revised and adapted the added value calculation by integrating ESG aspects into decision-making (Total Value of Owners- hip) on the basis of the following levers:

· Waste management and recycling. · Green supply. · Improving operational efficiency. · Value engineering by reassessing services and bundling work. · Optimising the value provided by suppliers by means of volume discounts. · Optimising transport costs. · Efficient equipment. · Jobs for people with disabilities.

At Cepsa we protect integrity and transparency in contracting processes, we favour free competition and we make sure that risk situations are identified.

3.5.1 Procurement approach