Repsol Sa · BME:REP
Repsol Sa — ESG Presentation (June 2016)
57 slides from Repsol Sa's sustainability presentation, June 2016
Slide 1: Delivering Value and Resilience through Sustainability
Repsol Delivering Value and Resilience through Sustainability June, 2016
Slide 2: Disclaimer
Disclaimer All Rights are Reserved Repsol S.A 2016 Repsol, S.A. is the exclusive owner of this document. No part of this document may be reproduced (including photocopying), stored, duplicated, copied, distributed or introduced into a retrieval system of any nature or transmitted in any form or by a
Slide 3: Agenda
1. Company Overview • Key Strategic lines 2016- 2020 • An integrated company operating across the entire value chain 2. Main challenges in Repsol 3. Our commitments to sustainability 4. Sustainability plans 5. Corporate Governance 6. Annexes Repsol S.A.EM Division of Economy, Finance and Development
Slide 4: Company Overview
Company Overview 1 4
Slide 5: Repsol today: Key Strategic lines 2016-2020
1. Repsol today: Key Strategic lines 2016- 2020 VALUE RESILIENCE Shift from growth to value Top tier resilience among integrated delivery, prepared companies for the next growth wave Self-financing strategy even in a Commitment to maintain shareholder stress scenario compensation FCF breakeven after
Slide 6: An integrated company operating across the entire value chain
1. Repsol today An integrated company oparating across the entire Value chain ~2.4 billion boe Integrated Delivery on proved reserves(*) business model commitments >700 kboepd // Talisman acquisition // Diversified and global production • Transformative deal with a long-term portfolio view • Competi
Slide 7: Main Challenges in Repsol
Main Challenges in Repsol 2 7
Slide 8: Community relations and Human Rights Management
2. Main challenges in Repsol Community relations and Human Rights Management Framework: Respecting Indigenous Rights Indigenous communities in Bolivia, Canada, Colombia, Ecuador, Papua New Guinea and Peru Repsol recognizes and respect the unique nature of indigenous, tribal and aboriginal people
Slide 9: Offshore deepwater safety and political risk
2. Main challenges in Repsol Offshore deepwater safety • Strict asset integrity procedures Deepwater • Members of: Oil Spill Response (OSR), Joint Industry Project (JIP) of IPIECA 1 Offshore and OGP 2, and Global Well Containment Response Strategy • Emergency response in place Brazil, GoM, Africa,
Slide 10: Arctic operations
2. Main challenges in Repsol Arctic operations • Norway/Barents Sea: Not qualified as arctic operations. North-sea-type operations • Alaska North Slope: onshore activity. Arctic • Russia: onshore activity • Alaska Chukchi Sea: We will not carry forward any operation. • Beaufort Sea: no operations
Slide 11: Our commitments to Sustainability
Our commitments to Sustainability 3 11
Slide 12: Repsol: a company fully committed to Sustainability
3. Our commitments to sustainability Repsol: a company fully commited to Sustainability A sustainable Company: A company that is able to anticipate risks in order to manage them properly, minimizing the impact of its activities and generating value for its shareholders Sustainability Commission es
Slide 13: Our commitments to sustainability
3. Our commitments to sustainability Commitment to Zero Accidents by 2020 Embedded safety culture Commitment to Strict asset integrity procedures safety Policy on respect for Excellence in spill human rights based on the prevention and response UN Guiding Principles on Optimized water&wa
Slide 14: Commitment to safety
3. Our commitments to sustainability Commitment to safety Our objective : zero accidents We have established targets to reduce PSIR1 and occupational safety (LTIFR2 and TRIR3). FATALITIES: PSRI TIER 1+ TIER 2 6 OCCUPATIONAL SAFETY • In 2015, two fatalities occurred during 2014 2015 the construction
Slide 15: Commitment to safety: SMArt keys Program
3. Our commitments to sustainability Commitment to safety SMArt keys Program A proactive safety plan accompanying the Company´s Strategic Plan together with other actions under the safety strategy of Repsol. Designed to prevent major industrial accidents. Focus on safety process . Systematize th
Slide 16: Commitment to safety: embedded safety culture
3. Our commitments to sustainability Commitment to safety Our objective : Embedded safety culture “The development of a Safety and Enviromental culture, embedded and shared by the whole company, is crucial to achieve our goals” •Culture Project: Definition of Repsol´s HSE Culture attributes and of m
Slide 17: Excellence in environmental management: spills
3. Our commitments to sustainability Excellence in environmental management Our objective : zero spills In 2015, the amount of hydrocarbon spilled was 2013 2014 2015 23 tons, less than the previous year, and it is Number of spills 14 17 21 important to highlight that no relevant spill Quantity spi
Slide 18: Biodiversity and Ecosystem Services
3. Our commitments to sustainability Excellence in environmental management Biodiversity and Ecosystem Services Our objective: The Prevention and minimization of any negative environmental impact in all our operations, especially in sensitive, biologically diverse and protected natural environments
Slide 19: Resource Use Efficiency: Water
3. Our commitments to sustainability Excellence in environmental management Resource Use Efficiency: Water Repsol has defined a water management improvement action plan for 2015-2020 that is specific to each installation, establishing a company goal of 85% compliance with the work lines •We have dev
Slide 20: Resource Use Efficiency: Waste
3. Our commitments to sustainability Excellence in environmental management Resource Use Efficiency: Waste Our objective : reduce waste by 50 kilotons by 2020 Working to improve waste management throughout the life cycle of our processes in order to minimize our impact on the environment. •Company w
Slide 21: Energy Efficiency and Climate Change
3. Our commitments to sustainability Promoting a low carbon strategy Energy Efficiency and Climate Change Our objective : to reduce 1,9 million tons of CO2 by 2020 More than 4.0 MtCO2 have been reduced since 2006 •About 150 efficiency actions are taken every year in our facilities and activities as
Slide 22: Our position on climate change
3. Our commitments to sustainability Promoting a low carbon strategy Energy Efficiency and Climate Change OUR POSITION ON CLIMATE CHANGE In Repsol we believe that two global goals have to be pursued: To mitigate climate change and To provide access to affordable energy in order to support econ
Slide 23: Moving from stakeholders engagement to partnerships
3. Our commitments to sustainability Promoting a low carbon strategy Energy Efficiency and Climate Change Moving from stakeholders engagement to partnerships Transparency • Repsol has been recognized as one of the best O&G companies for its Carbon Strategy. In 2015 2013 2014 2015 CDP is one of the m
Slide 24: Trending topics on climate change
3. Our commitments to sustainability Promoting a low carbon strategy Energy Efficiency and Climate Change TRENDING TOPICS ON CLIMATE CHANGE • The stranded assets concept offers limited analysis for key uncertainties and aspects such as developing new innovative technology. • Gas (lowest carbon-inten
Slide 25: Commitment to climate change after Paris conference
3. Our commitments to sustainability Promoting a low carbon strategy Energy Efficiency and Climate Change Repsol commitment to climate change, following the United Nations Conference on Climate Change in Paris As signatories to the document “Paris Pledge for Action” we support the Agreement and we
Slide 26: Transport electrification and biofuels
3. Our commitments to sustainability Promoting a low carbon strategy Transport electrification Biofuels • Repsol helps to reduce CO2 emissions through the use of • IBIL (50% owned by Repsol Nuevas Energías) first biofuels, including bioethanol in gasolines and biodiesel and recharging operator for e
Slide 27: Anti corruption / Ethical conduct
3. Our commitments to sustainability Anti corruption/ Ethical conduct Repsol is committed to fighting against corruption in all its forms and establishing mechanisms to prevent corrupt or fraudulent activities On line training available to employees Ethics and Conduct Due to the integration of T
Slide 28: Transparency
3. Our commitments to sustainability Transparency Transparency is a key value for Repsol and a guarantee of the company’s ethical performance, its commitment to ensuring that all financial and non-financial information is complete and accurate, and its willingness to engage in dialogue with all stak
Slide 29: Respect for Human Rights (I)
3. Our commitments to sustainability Respect for Human Rigths (I) Policy on Respect Based on the UN Guiding Principles on Business and Human Rights “ Protect, for Human rights Respect and Remedy” Community Development Development ofofaaNEW NEWGlobal Global Framework Framework andand management
Slide 30: Respect for Human Rights (II)
3. Our commitments to sustainability Respect for Human Rigths (II) For the first time Global Community Relations and Human Rights Function exists, pending directly from the Safety, Environment and Sustainability Division and one level from A new organizational the CEO model for the E&P Respect for
Slide 31: Sustainability Plans
Sustainability Plans 4 31
Slide 32: Sustainability plans: influence area and operations
4. Sustainability plans Influence Area Operations Added complexity Climate change Global Stakeholders Human rights Supply chain How to widen the view? How to include all stakeholders? How to involve the whole organization? 32
Slide 33: CSR Model
4. Sustainability plans CSR Model Stakeholders’ Aligning performance to List of actions: expectations on Repsol expectations Sustainability plans Sustainability Committees: Include multidisciplinary executive members which make decisions on the actions to close the gap with expectations which compos
Slide 34: Sustainability plans progress
4. Sustainability plans Progress 693 532 Nº of committees 16 574 800 Nº of actions 14 427 700 12 600 10 500 Number of actions is low 8 400 compared to previous year 278 because of efficiency: 6 61 300 Sustainability Plan 2016 has 4 200 deleted No innovative actions. A 5 process of review, priorita
Slide 35: Corporate Governance
Corporate Governance 5 35
Slide 36: Shareholder structure
5. Corporate Governance Shareholder structure 10.24% Caixabank S.A. 8.48% Sacyr Vallehermoso, S.A. 4.95% Temasek Institutional Retail Free Float Investor Free Float 76.33% 14.20% Total number of shares as of May 2016: 1,442 million 36
Slide 37: Board of Directors
5. Corporate Governance Board of Directors The company's Board of Directors recognizes that a solid commitment to corporate governance is critical to establishing trust and credibility with investors. Directors may not hold more Repsol currently has no than 4 mandates 1 in other overboarded Director
Slide 38: Separated CEO/Non Executive Chairman, Diversity and Transparency
5. Corporate Governance Board of Directors Separated CEO/Non Executive Chairman, Diversity and Transparency The roles of the CEO and Chairman have been separated as of April 30, 2014 with the appointment of Mr. Josu Jon Imaz as CEO. Separated In 2015, the Company continued implementation of this
Slide 39: Annexes
Annexes 6 39
Slide 40: Main KPI Evolution: Social Indicators
Annexes Main KPI Evolution Social Indicators Social 2013 2014 2015 Repsol personnel (number) 24,214 24,460 27,166 Accident frequency rate (Repsol and contractor staff) 0.59 0.85 0.92 Training in safety and occupational health (hours) 208,891 234,510 220,831 Deaths (number) 0 0 2 Personnel covered by
Slide 41: Main KPI Evolution: Environmental Indicators
Annexes Main KPI Evolution Enviromental Indicators Environmental Indicators 2013 2014 2015 Spills Number of spills that reach the environment 14 17 21 Volume of hydrocarbon spills that reach the 15 316 23 environment (tons) Energy and Carbon Management Energy Consumption (106 GJ) 176,8 178,4 214 Dir
Slide 42: Safety, Environmental and Sustainability
Safety, Enviromental and Sustainability 42
Slide 43: Safety indicators
Annexes Safety indicators Lost time injury frequency Own Employees Total recordable injury frequency Contractors Employees rate rate Combined 2,7 0,85 0,92 2,6 2,5 0,59 2,4 2,3 2,2 2,1 0,6 0,55 0,92 0,78 1,12 0,79 2,59 2,38 2,25 2 2013 2014 2015 2013 2014 2015 Safety and Enviromental Audit Numbe
Slide 44: CO2 Emission reduction achieved per year
Annexes CO2 Emission reduction achieved per year Emission reduction achieved in the year Accumulated emission reduction achieved in previous years 4,50 0,38 4,00 0,52 3,50 0,44 3,00 0,44 MtCO2 2,50 0,62 2,00 4,02 0,39 3,64 0,20 3,12 1,50 2,68 0,27 0,17 2,24 1,00 0,58 1,61 1,02 1,23 0,50 0,86 0,58 0,
Slide 45: Accident in LPG Peru
Accident in LPG Peru June 11th, 2015. Two fatalities occurred during the construction of a new LPG plant in Cuzco (Peru) as a result of a landslide While a trench was being dug in an excavation project, peat was found, a material which is harmful to foundations due to its low resistance to compressi
Slide 46: Accident in 3D Seismic Operation. Indonesia
Accident in 3D Seismic Operation. Indonesia January 15th, 2016. A fatality occurred during a 3D seismic operation in Indonesia, due to a tree that fell on the worker While waiting for the water supply to continue drilling activities, one crew of BPS Drilling Unit was hit by a falling tree at his bac
Slide 47: Human Rights
Human Rights 47
Slide 48: Repsol Human Rights Policy
Our commitments with sustainability Repsol Human Rights Policy On June 16, 2011, the United Nations Human Rights Council unanimously endorsed the Guiding Principles for Business and Human Rights, making the framework the first corporate human rights responsibility initiative to be endorsed by the Un
Slide 49: Repsol Community Relations policy
Our commitments with sustainability Repsol Community Relations policy o To achieve and maintain strong and enduring relationships with communities in the area of influence of our projects, based on trust, mutual respect and shared- valued, through proactive engagement and management of social impact
Slide 50: Community relations and Human Rights Management Framework
Our commitments with sustainability Community relations and Human Rights Management Framework Repsol has developed a Global Framework based on leading international standards (IFC1, UNGP2, OECD3 guidelines) Result of the integration process with Talisman. Includes processes and activities aimed
Slide 51: Human Rights impact assessments
Our commitments with sustainability Community relations and Human Rights Management Framework Human Rights impact assessments First experiences applying HR Consolidation Reinforce Improvement lens lessons learned implementation Develop Inclusion of Support Carry out internal HRIA HRIA specific guida
Slide 52: Community Grievance Mechanisms
Our commitments with sustainability Community relations and Human Rights Management Framework Community Grievance Mechanisms Consolidation Reinforce First experiences applying HR lens Improvement lessons learned implementation Inclusion of Pilot project in an Support operated asset Develop internal
Slide 53: Main Sustainability Indexes
Main Sustainability Indexes 53
Slide 54: Main Sustainability Indexes and Initiatives
Annexes Main Sustainability Indexes and Initiatives Repsol has led the Oil & Gas sector for two consecutive years, in the 2011 and 2012 editions of the prestigious Dow Jones Sustainability Indexes. The company also leads the Oil & Gas sector on the European index (DJSI Europe). 54
Slide 55: Main Sustainability Indexes and Initiatives: CDLI
Annexes Main Sustainability Indexes and Initiatives Repsol is the leading oil and gas company in 2015 for carbon disclosure, according to the Climate Disclosure Leadership Index (CDLI), comprising the top 50 international companies in communication and transparency on climate change 2010 2011 2012 2
Slide 56: Thank you
Repsol Investor Relations contact details: • Mr. Luis Pedrosa, Front Office, Corporate Access and ESG Manager lmpedrosar@repsol.com +34 91 7537443 • Ms. Leticia Padura, ESG Manager lpadurafn@repsol.com +34 91 7535988 THANK YOU © Repsol S.A.EM Division of Economy, Finance and Development. 09/06/2016
Slide 57: Delivering Value and Resilience through Sustainability
Repsol Delivering Value and Resilience through Sustainability June, 2016