Repsol

Repsol's corporate governance system guides the structure, organization and operation of its corporate bodies in the best interests of the company and its shareholders. It is based on the principles of transparency, independence and accountability and is fully compliant with current national and international standards.

The governance structure adequately differentiates governance and management functions from oversight, control, and strategic definition functions.

Board of Directors Composition:

Chairman: Antonio Brufau Niubó (Non-Executive Director) Chief Executive Officer: Josu Jon Imaz (Executive Director) Independent Lead Director: Mariano Marzo Carpio

Independent Directors (73.3%):

• J. Robinson West
• María del Pino Velázquez Medina
• Isabel Torremocha Ferrezuelo
• Ignacio Martín San Vicente
• Iván Martén Uliarte
• Aurora Catá Sala
• Arantza Estefanía Larrañaga
• Carmina Ganyet i Cirera
• Teresa García-Milá Lloveras
• Manuel Manrique Cecilia

Other Non-Executive Directors (20%):

• Henri Philippe Reichstul
• Emiliano López Achurra

Executive Directors (6.7%):

• Josu Jon Imaz (CEO)

Board Committees:

• Audit and Control Committee
• Remuneration Committee
• Executive Committee
• Sustainability Committee
• Nomination Committee

There are no controlling or significant shareholders represented on the Board.

The Board of Directors has established specialized committees to address sustainability matters:

Sustainability Committee: One of the five specialized committees of the Board, dedicated to sustainability oversight and governance.

The governance structure adequately differentiates governance and management functions from oversight, control, and strategic definition functions, ensuring proper information flow on sustainability matters to the Board.

The Board's composition includes a Lead Independent Director (Mariano Marzo Carpio) and maintains a high proportion of independent directors (73.3%) to ensure effective oversight of sustainability matters.

Directors receive fixed remuneration for fulfilling their supervisory and decision-making duties. Aside from the remuneration payable to the Chairman of the Board of Directors, remuneration is calculated by assigning points for seats held on the Board or its various committees, or for holding specific positions on those bodies. Each point has a remuneration equivalence, meaning there is no difference in remuneration by gender.

Detailed information regarding the application of the Remuneration Policy for Directors is set out in Repsol's Annual Report on Directors' Remuneration, included in Appendix VII and available at www.repsol.com.

This entire process of transforming our business would not be possible without the talent of our employees, who make up a diverse and multicultural team of more than 25,000 people in more than 20 countries and who are our greatest asset. We remain focus on complying with the Global Compact's Ten Principles on human rights, labor standards, anti-corruption and the environment, and on initiatives such as the CEO Water Mandate.

Repsol's corporate governance system is based on the principles of transparency, independence and accountability and is fully compliant with current national and international standards. The Group's corporate structure is aligned with the needs and objectives of the businesses, complies with the applicable legal and tax framework, and avoids the use of artificial and opaque structures.

Repsol's corporate governance system guides the structure, organization and operation of its corporate bodies in the best interests of the company and its shareholders. It is based on the principles of transparency, independence and accountability and is fully compliant with current national and international standards.

The governance structure adequately differentiates governance and management functions from oversight, control, and strategic definition functions.

The Audit and Control Committee is one of the specialized Board committees responsible for oversight and control functions, including risk management and internal controls.

Sustainability information is presented in accordance with the requirements of the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS) adopted through the European Commission's Delegated Act of July 31, 2023.

Business Model

Repsol's activities are structured into four business segments:

Upstream (Exploration & Production)

Exploration and production of crude oil and natural gas reserves, as well as the development of low-carbon geological solutions (geothermal, carbon capture, storage and use, etc.).

Key Activities:

• Exploration: After acquiring new acreage, we carry out geological and geophysical work, conduct environmental impact studies, and perform exploratory drilling to evaluate its potential, using cutting-edge digital technologies.
• Development: We drill wells, build collection systems and processing plants and evacuation and transport systems, under sustainability, safety and transparency policies.
• Production: We extract hydrocarbons from the reservoir to market and sell them, using artificial intelligence technologies and following sustainability and safety policies.
• Low-carbon geological solutions: We optimize subsoil resources associated with geothermal energy, CO2 storage and renewable hydrogen as a decarbonization tool.

Industrial

Oil refining, petrochemicals and trading, transportation and marketing of crude oil, natural gas and fuels, including the development of new growth platforms such as hydrogen, sustainable biofuels and synthetic fuels.

Key Activities:

• Refining: We transform crude oil and various alternative raw materials into value-added products such as fuels, renewable fuels and circular materials. We have among our priorities the production of renewable hydrogen.
• Chemicals: We produce and market a wide variety of petrochemical products used in everyday objects that improve people's quality of life.
• Trading: We supply crude oil, intermediates, chemical raw materials and lipid residues consumed by our industrial complexes and market petroleum products, renewable fuels and petrochemicals in international markets.
• Lubricants, Asphalts, Aviation and Specialized products: We develop, produce and market these products in more than 90 countries worldwide.

Customer

Mobility (service stations) and marketing of fuels (gasoline, diesel, aviation kerosene, liquefied petroleum gases, biofuels...), electricity and gas and lubricants, asphalts and other specialties.

Key Activities:

• Mobility: We have the largest network of service stations in Spain, offering multi-energy solutions linked to the Waylet app. We introduce renewable fuels and electric charging points.
• Retail supply of electricity and gas: We supply low-emission gas and electricity in Spain and Portugal with cutting-edge digital solutions and energy management initiatives.
• LPG: We distribute and sell liquefied petroleum gas in Spain, Portugal and France in various formats.
• Retail and wholesale supply of gas: We engage in wholesale marketing and trading of natural gas and LNG globally.

Low Carbon Generation (LCG)

Low-emissions electricity generation (combined cycle natural gas plants) and renewable sources.

Key Activities:

• Low-emission electricity generation: Repsol has projects including hydroelectric plants, combined cycles, cogeneration plants, wind and photovoltaic farms.
• Renewable development: Building new renewable assets to increase capacity.

Global Presence

Repsol Group, whose parent company is Repsol, S.A., is made up of more than 600 companies with a presence in 40 countries.

Value Chain Integration

Repsol operates as an integrated energy company across the entire value chain from exploration and production through refining, chemicals, and retail supply, positioning itself as a multi-energy supplier capable of offering customers comprehensive energy solutions.

Shareholder Engagement

Shareholder Structure: There are no controlling or significant shareholders represented on the Board. Approximately 35% of the company's institutional investors are socially and environmentally responsible investors.

Key Shareholders (latest available information):

• BlackRock, Inc.: 6.20%
• Millennium Group: 4.97%
• Norges Bank: 1.01%
• Other: 87.82%

Customer Focus

Multi-energy Customer Solutions: Our customers are at the center of decisions made by our company. We offer digital solutions such as Waylet, our payment app, which brings all of Repsol's multi-energy and commercial products and services together in a single app. At year-end 2024, we had nearly 9.3 million digital customers (mainly active on Waylet), marking an increase of more than one million unique customers.

Customer Growth Strategy:

• Electricity and gas customers increased to 2.5 million customers (15% growth)
• More than 800 service stations supplying 100% renewable fuel in Spain and Portugal
• Around 2,800 public charging points installed
• Growth strategy based on highly competitive propositions and strong focus on customer loyalty

Employee Engagement

Diverse Workforce: Our employees make up a diverse and multicultural team of more than 25,000 people in more than 20 countries and are our greatest asset.

Employee Commitment: We remain focused on complying with the Global Compact's Ten Principles on human rights, labor standards, anti-corruption and the environment.

Supplier Relationships

Strategic Partnerships:

• Strategic alliance with Bunge Ibérica to increase access to low-carbon feedstocks for renewable fuels
• Agreement to acquire 40% stake in Genia Bioenergy for biomethane plant development
• Partnership with ConnectGen adding 20 GW renewable project portfolio

Community Engagement

Repsol contributes to economic development and job creation:

• Paid €12,382 million in taxes in 2024, of which €8,427 million was paid in Spain
• Industrial projects create jobs and wealth, particularly in rural areas through circular economy initiatives
• Support for strategic sectors of the Spanish economy through industrial investments

Material Impacts, Risks and Opportunities and their Interaction with Strategy

Climate Change - Key Strategic Focus

Repsol was the first energy firm to announce its ambition to become a net zero emissions company by 2050 in December 2019, starting a strategic transformation.

Decarbonization Targets:

• 20% reduction in absolute greenhouse gas emissions (Scopes 1, 2 and 3) by 2030 compared to base year 2018 (224 Mt CO₂e)
• Net zero emissions (NZE) by 2050
• 2024 emissions: 192.7 Mt CO₂e, reflecting 14% reduction from base year 2018

Energy Transition Opportunities

Strategic Plan 2024-2027 focuses on seizing opportunities offered by the energy transition:

• Investment discipline: €16,000-19,000 million planned investment, with above 35% focusing on low-carbon businesses
• Industrial transformation: Converting industrial complexes into multi-energy hubs capable of processing all sorts of raw materials and waste
• Multi-energy growth: Expanding renewable fuels, hydrogen, biogas, solar and photovoltaic energy while maintaining oil and gas efficiency

Technology Neutrality Approach

Comprehensive Energy Strategy: "Our objective is to capitalize on every opportunity offered by the energy transition. This is why we remain committed to developing different energy sources, such as renewable fuels, hydrogen, biogas, solar and photovoltaic energy. And we are doing so without abandoning our legacy assets, oil and natural gas, making the exploration, production and consumption of these fuels more efficient."

Key Material Risks and Opportunities

Market Volatility Risks:

• Crude oil price volatility (Brent averaged $81/bbl in 2024, 2% below 2023)
• Low gas prices (Henry Hub fell 15% to $2.3/MBtu)
• Declining electricity prices in Spain (fell 28% to 63 €/MWh)
• Refining margin decline

Regulatory and Policy Risks:

• Spanish Temporary Energy Levy negative impact (€-450 million in 2024)
• European industrial competitiveness challenges due to high energy costs
• Need for stable regulatory framework for investment certainty

Energy Security Opportunities:

• Europe's need to secure supply chain in critical technologies
• Strategic autonomy in defense and energy sectors
• Growing demand for renewable fuels and low-carbon solutions

Circular Economy and Innovation

New Value Chains: "This strategy will enable us to create new value chains based on the circular economy to serve as a lever for fostering industrial activity, generating new jobs and driving the economy in the depopulated rural areas of Spain."

Technology Development: Over 250 technology projects in 2024, with 58% focused on low emissions technologies

Financial Resilience Strategy

Capital Allocation Framework:

• Shareholder return priority: 25-35% of operating cash flow
• Financial strength: Maintaining investment grade credit rating
• Investment focus: Low-carbon businesses while preserving profitability of conventional assets

Business Transformation by Segment:

• Upstream: Portfolio optimization focusing on highest value creation assets
• Industrial: Building scalable low-carbon fuels and materials platform
• Customer: Multi-energy leadership accompanying customers in energy transition
• LCG: Renewable energy platform construction and optimization

Repsol has established processes to identify and assess material impacts, risks and opportunities through its strategic planning framework and governance structure.

Strategic Assessment Process

Strategic Plan Updates: Repsol regularly updates its strategic direction, with the latest Strategic Plan 2024-2027 (SP 24-27) reflecting comprehensive assessment of material factors. In 2024, "having already achieved many of the objectives set out in the SP 21-25, a strategic update for the period 2024-2027 was carried out."

Technology and Risk Assessment: Repsol Technology Lab worked on more than 250 projects during 2024 (58% focused on low emissions), conducting technology and business risk assessments in close collaboration with various business units.

Materiality Assessment Integration

Business Model Integration: The materiality assessment is integrated into business strategy, with the SP 24-27 allowing for "a more robust and cost-effective energy transition, by prioritizing investments in the current integrated portfolio of high-quality assets and low-carbon initiatives."

Multi-stakeholder Approach: Assessment considers:

• Shareholder interests (investment grade rating maintenance)
• Customer needs (multi-energy solutions)
• Employee perspectives (25,000+ employees across 20+ countries)
• Regulatory requirements (CSRD compliance)
• Market dynamics (energy transition opportunities)

Risk Management Framework

Governance Oversight: The Board structure includes specialized committees:

• Audit and Control Committee for risk oversight
• Sustainability Committee for ESG risk assessment
• Governance structure that "adequately differentiates governance and management functions from oversight, control, and strategic definition functions"

Financial Risk Assessment: Regular monitoring of:

• Credit risk (maintaining investment grade rating)
• Market volatility (oil, gas, electricity price impacts)
• Regulatory risk (energy levy impacts)
• Operational risk (safety metrics, process incidents)

Digital and Data-Driven Assessment

Digital Program Integration: More than 800 digital initiatives implemented, with cutting-edge technologies including:

• Generative AI: Over 60 use cases for risk and opportunity identification
• Data Analytics: Integration of data and artificial intelligence across value chain
• Scenario Planning: Development of simulation solutions for new assets

Continuous Monitoring: "We have implemented more than 800 digital initiatives in recent years within the framework of our Digital Program. This has allowed us to integrate various cutting-edge technologies, mainly related to the use of data and artificial intelligence (AI)."

Based on the materiality assessment and strategic priorities, Repsol covers the following ESRS disclosure requirements in its sustainability statement:

Environmental Standards Coverage

E1 - Climate Change: Comprehensive coverage given Repsol's commitment to net zero by 2050 and 20% emissions reduction by 2030. This includes:

• Transition plans for climate change mitigation
• Climate-related policies and actions
• Energy consumption and GHG emissions (Scopes 1, 2, 3)
• Climate-related financial effects

E2 - Pollution: Coverage of pollution-related impacts from industrial operations

E3 - Water and Marine Resources: Coverage given industrial operations and upstream activities

E4 - Biodiversity and Ecosystems: Coverage related to upstream exploration and production activities

E5 - Resource Use and Circular Economy: Significant coverage given focus on circular economy value chains and waste-to-fuel initiatives

Social Standards Coverage

S1 - Own Workforce: Comprehensive coverage for 25,000+ employees across 20+ countries, including:

• Workforce characteristics and diversity
• Health and safety metrics
• Training and development
• Collective bargaining coverage

S2 - Workers in the Value Chain: Coverage of supply chain worker impacts

S3 - Affected Communities: Coverage related to community impacts from operations

S4 - Consumers and End-Users: Coverage given customer-facing businesses and multi-energy offerings

Governance Standards Coverage

G1 - Business Conduct: Comprehensive coverage including:

• Corporate governance policies
• Anti-corruption and bribery prevention
• Supplier relationship management
• Political influence and lobbying activities

General Disclosures Coverage

ESRS 2: Full coverage of general disclosures including:

• Governance structure and role of administrative bodies
• Strategy, business model and value chain
• Stakeholder engagement processes
• Risk management and internal controls
• Due diligence processes

Reporting Framework

CSRD Compliance: "Sustainability information is presented in accordance with the requirements of the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS) adopted through the European Commission's Delegated Act of July 31, 2023."

Additional Standards: "Additionally and on a voluntary basis, this report incorporates indicators with reference to the Global Reporting Initiative (GRI) Guide."

Integrated Reporting: The information "makes up the Consolidated Statement of Non-Financial Information and Sustainability Information included in Appendix V."

Transition Plan for Climate Change Mitigation

Repsol has established a comprehensive transition plan aligned with its net zero emissions ambition by 2050.

Strategic Framework

Net Zero Commitment: In December 2019, Repsol was the first energy firm to announce its ambition to become a net zero emissions company by 2050, thus starting a strategic change of course.

Updated Strategic Plan 2024-2027: The transition plan is integrated into the SP 24-27, which "allows for a more robust and cost-effective energy transition, by prioritizing investments in the current integrated portfolio of high-quality assets and low-carbon initiatives."

Emission Reduction Targets

Absolute Emission Reduction: Repsol has set targets for reducing absolute greenhouse gas emissions for Scopes 1, 2 and 3:

• 20% reduction by 2030 compared to base year 2018 (224 Mt CO₂e)
• Net zero emissions (NZE) by 2050

Progress Tracking: In 2024, Repsol's emissions (Scopes 1, 2 and 3) totaled 192.7 Mt CO₂e, reflecting a 14% reduction from the base year (2018).

Technology Neutrality Approach

Multi-Energy Strategy: "Our objective is to capitalize on every opportunity offered by the energy transition. This is why we remain committed to developing different energy sources, such as renewable fuels, hydrogen, biogas, solar and photovoltaic energy. And we are doing so without abandoning our legacy assets, oil and natural gas, making the exploration, production and consumption of these fuels more efficient."

Industrial Transformation

Multi-Energy Hubs: "One of the pillars of our strategy is the transformation of the company's industrial assets. To succeed in this task, we are turning our industrial complexes into multi-energy hubs, capable of processing all sorts of raw materials and waste to manufacture products with a low carbon footprint."

Renewable Fuels Platform:

• Started up first plant in Iberian Peninsula (Cartagena) producing 100% renewable diesel and sustainable aviation fuel (SAF) from organic waste
• Adapting Puertollano facility for second renewable fuels plant (late 2025/early 2026)
• Strategic alliance with Bunge Ibérica for low-carbon feedstock access

Circular Economy Integration: "This strategy will enable us to create new value chains based on the circular economy to serve as a lever for fostering industrial activity, generating new jobs and driving the economy in the depopulated rural areas of Spain."

Investment Allocation

Low-Carbon Investment Focus: Planned investment of €16,000-19,000 million over 2024-2027, with above 35% focusing on low-carbon businesses.

Technology Investment: More than €500 million will be invested in technology and digitalization over four years, with 58% of technology projects focused on low emissions.

Business-Specific Transition Plans

Industrial Segment: "Maximizing profitability, becoming more competitive, and building resilience in relation to conventional assets. Creating scalable and unique low-carbon fuels and materials platform (renewable fuels, renewable hydrogen, circularity and biomaterials)."

Customer Segment: "Being a multi-energy leader with the aim of generating profitable growth by accompanying customers in their energy transition. Building multi-energy competitive advantages."

LCG Segment: "Evolving from a phase of renewable energy platform construction (Wind and Solar), to a ramp-up phase or organically growing and optimizing the project pipeline."

Carbon Capture and Storage

CCUS Development: Various projects were undertaken for the "capture, sequestration and storage of CO2, which will help Repsol achieve its objective of reducing emissions."

Synthetic Fuels: Started work on a 'demo' plant in Port of Bilbao capable of producing synthetic fuels from captured CO2 and renewable hydrogen.

Policies Related to Climate Change Mitigation and Adaptation

Corporate Commitment Framework

Net Zero Ambition: Repsol remains "firmly aligned with the global objectives of keeping global warming below 1.5 °C by the end of the century and of achieving emissions neutrality by 2050."

Strategic Integration: As part of its "strategy to address climate risks and opportunities, the Company has set new targets for reducing absolute greenhouse gas emissions for Scopes 1, 2 and 3: securing a 20% reduction in these emissions by 2030 compared to the base year 2018 (224 Mt CO₂e) and achieving net zero emissions (NZE) by 2050."

Technology Neutrality Policy

Comprehensive Energy Approach: Repsol advocates for "the concept of technology neutrality and promote the use of all types of technologies to decarbonize its economy. The point is to combine electrification with the use of other energy sources, which would enable us to continue reducing CO2 emissions and, at the same time, support the supply of all the energy that society needs at affordable prices."

Sustainability Governance

Global Compact Compliance: "We remain focused on complying with the Global Compact's Ten Principles on human rights, labor standards, anti-corruption and the environment, and on initiatives such as the CEO Water Mandate."

Board Oversight: The governance structure includes a dedicated Sustainability Committee as one of five specialized Board committees to oversee climate-related policies.

Industrial Transformation Policy

Asset Transformation: Policy framework for "turning our industrial complexes into multi-energy hubs, capable of processing all sorts of raw materials and waste to manufacture products with a low carbon footprint."

Circular Economy Integration: Policy commitment to "create new value chains based on the circular economy to serve as a lever for fostering industrial activity, generating new jobs and driving the economy in the depopulated rural areas."

Innovation and Technology Policy

R&D Focus: Policy commitment demonstrated through Repsol Technology Lab working on "more than 250 projects during the year (58% focused on low emissions), doing so in close collaboration with the various businesses."

Digital Integration: Climate policies supported by digital transformation with "more than 800 digital initiatives" implemented to integrate cutting-edge technologies across the value chain.

Regulatory Engagement

European Policy Advocacy: Repsol advocates for European policies that support industrial competitiveness while advancing decarbonization, calling for "technology neutrality" and "stable regulatory framework that provides incentives and certainty for further investment in industry."

Climate Risk Management

Financial Risk Integration: Policies include maintaining "financial strength" and investment grade credit rating while pursuing climate transition, with risk management oversight through the Audit and Control Committee.

Stakeholder Engagement Policy

Multi-Stakeholder Approach: Climate policies designed to serve "the interests of its shareholders, customers and employees, specifically, that which guarantees the Company's long-term sustainability and maximizes the profitability of its businesses and the value of its investments in the context of the energy transition."

Actions and Resources for Climate Change Policies

Investment in Low-Carbon Technologies

Strategic Investment Allocation: Planned investment of €16,000-19,000 million over 2024-2027, with above 35% focusing on low-carbon businesses to harness opportunities offered by the energy transition.

Technology Investment: More than €500 million dedicated to technology and digitalization over four years, with 58% of technology projects focused on low emissions.

Industrial Transformation Actions

Renewable Fuels Development:

• Cartagena Plant: Started up the first plant in the Iberian Peninsula capable of producing fuel 100% renewable on an industrial scale from organic waste
• Puertollano Conversion: Adapting existing diesel processing unit to become second renewable fuels plant by late 2025/early 2026
• Strategic Partnerships: Alliance with Bunge Ibérica to increase access to "broad portfolio of low-carbon feedstocks needed for the manufacture of renewable fuels"

Biomethane Platform: Agreement to acquire 40% stake in Genia Bioenergy to develop 19 biomethane plants (renewable gas flagged as strategic by the European Union).

Synthetic Fuels Initiative: Started work on 'demo' plant in Port of Bilbao capable of producing synthetic fuels from captured CO2 and renewable hydrogen.

Technology Development Actions

Research & Development: Repsol Technology Lab worked on more than 250 projects during 2024, with key achievements:

• Lipid hydrogenation pilot plant start-up with new features for industrial units
• "Madrid Vuela Sostenible" initiative for sustainable aviation fuel (SAF) development
• Pyroplast 2.0 project for co-processing alternative oils from tire pyrolysis
• New Circular Economy Laboratory for characterization of raw materials in new production processes

Carbon Capture Projects: Various projects undertaken in the United States and Indonesia for "capture, sequestration and storage of CO2, which will help Repsol achieve its objective of reducing emissions."

Renewable Energy Expansion

Generation Capacity Growth:

• Renewable generation capacity reached 3,659 MW by end of 2024
• 67% increase in renewable wind and solar power production
• Launched projects including Frye (Repsol's largest PV power plant) and Sigma (first project in Andalusia)

ConnectGen Acquisition: Completed integration of ConnectGen, adding 20 GW renewable project portfolio, mostly onshore wind at different development stages in the United States.

Multi-Energy Customer Solutions

Renewable Fuel Distribution:

• Launched 100% renewable Nexa Diesel at more than 800 service stations in Spain and Portugal
• Target to reach 1,500 stations by end of year
• Agreements with logistics group Sesé and airline group IAG for renewable diesel and SAF supply

Electric Mobility Infrastructure:

• Expanded public electric charging network to around 2,800 public charging points
• Agreement with Adif to install and operate 1,000 charging stations at 80 train stations over next two years

Digital Innovation Actions

AI and Digital Technologies:

• Generative AI Competence Center completed first year with nine lines of work and more than 60 use cases implemented
• 3,000 Copilot M365 licenses installed
• Digital solutions supporting sustainability across all business units

Circular Economy Actions

Waste-to-Energy Projects:

• Using organic waste such as used cooking oil to produce 100% renewable fuels
• Planned Tarragona Ecoplant with €800 million investment to transform urban waste into renewable methanol

Venture Investments:

• Investment in Ingelia S.L. (HTC technology for biomass valorization)
• Investment in Darwin Bioprospecting Excellence S.L. (microorganism solutions for microplastics biodegradation)

Resource Allocation by Business

Business-Specific Actions:

• Upstream: Portfolio optimization and CO2 storage projects
• Industrial: €1,274 million investment in transformation and renewable fuels capacity
• Customer: €409 million investment in multi-energy infrastructure
• LCG: €2,478 million investment (32% increase) in renewable energy development

Targets Related to Climate Change Mitigation and Adaptation

Absolute Emission Reduction Targets

Primary Climate Targets: Repsol has set ambitious targets for reducing absolute greenhouse gas emissions:

• 20% reduction in Scopes 1, 2 and 3 emissions by 2030 compared to base year 2018 (224 Mt CO₂e)
• Net zero emissions (NZE) by 2050

Progress Against Targets: In 2024, Repsol's emissions (Scopes 1, 2 and 3) totaled 192.7 Mt CO₂e, reflecting a 14% reduction from the base year 2018, demonstrating significant progress toward the 2030 target.

Carbon Intensity Target

Carbon Intensity Indicator:

• 2024: 66.7 gCO₂e/MJ
• 2023: 68.6 gCO₂e/MJ
• Shows continued improvement in carbon intensity performance

Business-Specific Targets

Industrial Transformation Targets:

• Renewable fuel production capacity: Increased to 1.25 Mt/year in 2024 (from 1.00 Mt/year in 2023)
• Target to reach 1,500 service stations supplying 100% renewable fuel by end of year (from 800+ currently)

Renewable Energy Targets:

• Achieved 3,659 MW renewable generation capacity by end of 2024
• 67% increase in renewable wind and solar power production
• Portfolio of 3,106 MW renewable capacity under development

Multi-Energy Customer Targets:

• Achieved 2.5 million electricity and gas customers (15% increase from 2023)
• 9.3 million digital customers (increase of more than 1 million from 2023)
• Expanded to around 2,800 public charging points installed

Investment Targets for Climate Action

Strategic Plan 2024-2027 Targets:

• €16,000-19,000 million total planned investment
• Above 35% of investments focused on low-carbon businesses
• More than €500 million investment in technology and digitalization

Operational Performance Targets

Upstream Production Targets:

• Target average production of 550,000 barrels over Strategic Plan term
• 2024 achievement: 571,000 barrels of oil equivalent per day (exceeded target)

Financial Performance Integration

Shareholder Return Targets: While pursuing climate targets, maintain:

• 25-35% of operating cash flow as total payout
• 3% annual growth in dividend payments
• Investment grade credit rating maintenance

Technology Development Targets

Innovation Targets:

• 58% of technology projects focused on low emissions (achieved in 2024)
• More than 250 technology projects annually
• Continued development of carbon capture, storage and utilization technologies

Scope-Specific Targets

Scope 1 & 2 Emissions:

• 2024: 14.0 Mt CO₂e (operational scope)
• 2023: 14.8 Mt CO₂e
• Shows 5.4% reduction year-over-year

Scope 3 Integration: Targets include full value chain emissions (Scopes 1, 2 and 3) demonstrating comprehensive approach to climate impact management.

Long-term Vision Target

2050 Net Zero Commitment: "Repsol remains firmly aligned with the global objectives of keeping global warming below 1.5°C by the end of the century and of achieving emissions neutrality by 2050."

Energy Consumption and Mix

Renewable Energy Generation

Renewable Capacity Growth:

• Renewable generation capacity: 3,659 MW by end of 2024
• 67% increase in renewable wind and solar power production compared to 2023
• Renewable capacity under development: 3,106 MW

Electricity Generation Mix (2024):

• Total electricity generation: 7,785 GWh (vs 8,718 GWh in 2023)
• Renewable generation: 4,597 GWh (vs 2,750 GWh in 2023) - 67% increase
• Combined cycle (natural gas): 2,037 GWh (vs 4,796 GWh in 2023)
• Hydro power: 1,151 GWh (vs 1,172 GWh in 2023)

Installed Operating Capacity

Total Installed Capacity: 5,876 MW in operation (vs 5,006 MW in 2023)

• Renewable capacity (Wind + Solar): 2,966 MW (42% increase from 2023)
• Hydro capacity: Included in total operational capacity
• Combined cycle capacity: Natural gas plants for low-emission baseload generation

Energy Mix Transformation

Multi-Energy Hub Development: "We are turning our industrial complexes into multi-energy hubs, capable of processing all sorts of raw materials and waste to manufacture products with a low carbon footprint."

Technology Neutrality Approach: "Our objective is to capitalize on every opportunity offered by the energy transition. This is why we remain committed to developing different energy sources, such as renewable fuels, hydrogen, biogas, solar and photovoltaic energy. And we are doing so without abandoning our legacy assets, oil and natural gas, making the exploration, production and consumption of these fuels more efficient."

Renewable Fuel Production

Renewable Fuel Capacity:

• 2024: 1.25 Mt/year production capacity
• 2023: 1.00 Mt/year production capacity
• 25% increase in renewable fuel production capacity

Renewable Fuel Infrastructure:

• Started up first plant in Iberian Peninsula (Cartagena) producing 100% renewable diesel and sustainable aviation fuel (SAF)
• Converting Puertollano facility for second renewable fuels plant by late 2025/early 2026

Refining Energy Consumption

Refining Operations:

• Crude oil processed (Spain): 43.3 million tonnes (vs 42.1 million tonnes in 2023)
• Spain conversion refining utilization: 99.5% (vs 100.0% in 2023)
• Spain distillation refining utilization: 88.1% (vs 85.4% in 2023)

Customer Energy Supply

Electricity Sales: 6,735 GWh (vs 4,741 GWh in 2023) - 42% increase

Multi-Energy Customer Solutions:

• 2.5 million electricity and gas customers in Iberia
• Around 2,800 public electric charging points installed
• More than 800 service stations supplying 100% renewable fuel

Alternative Energy Development

Biomethane Platform: Agreement to develop 19 biomethane plants through 40% stake in Genia Bioenergy

Synthetic Fuels: Demo plant in Port of Bilbao for producing synthetic fuels from captured CO2 and renewable hydrogen

Hydrogen Development: Prioritizing production of renewable hydrogen as key to decarbonizing various sectors

Energy Efficiency Indicators

Carbon Intensity: 66.7 gCO₂e/MJ in 2024 (vs 68.6 gCO₂e/MJ in 2023), showing improved energy efficiency

Operational Efficiency: High utilization rates at refining facilities with focus on conversion capacity optimization

Gross Scopes 1, 2, 3 and Total GHG Emissions

Total GHG Emissions (All Scopes)

Total Emissions Performance:

• 2024: 192.7 Mt CO₂e (Scopes 1, 2 and 3)
• 2023: 195.7 Mt CO₂e (Scopes 1, 2 and 3)
• Change: 1.5% reduction year-over-year

Progress Toward Targets: 2024 emissions reflect a 14% reduction from base year 2018 (224 Mt CO₂e), demonstrating significant progress toward the 2030 target of 20% reduction.

Scope 1 & 2 Emissions (Operational)

Direct and Indirect Emissions:

• 2024: 14.0 Mt CO₂e (Scopes 1 and 2, operational scope)
• 2023: 14.8 Mt CO₂e (Scopes 1 and 2, operational scope)
• Change: 5.4% reduction year-over-year

Carbon Intensity Indicator

Emission Intensity Performance:

• 2024: 66.7 gCO₂e/MJ
• 2023: 68.6 gCO₂e/MJ
• Change: 2.8% improvement in carbon intensity

Emission Reduction Strategy

Absolute Emission Targets: Repsol has committed to:

• 20% reduction in absolute GHG emissions (Scopes 1, 2 and 3) by 2030 compared to base year 2018
• Net zero emissions (NZE) by 2050

Comprehensive Scope Coverage: "The Company has set new targets for reducing absolute greenhouse gas emissions for Scopes 1, 2 and 3," demonstrating commitment to full value chain emission management.

Emission Sources and Categories

Operational Scope Definition: The operational scope for Scopes 1 & 2 emissions is detailed in "section 2.1 'Climate change' of the Non-financial and Sustainability Information Statement (see Appendix V)."

Business Segment Contributions

While specific breakdowns by business segment are not provided in this excerpt, the emissions cover all business activities:

• Upstream: Exploration and production operations
• Industrial: Refining and chemical operations
• Customer: Commercial and retail operations
• Low Carbon Generation: Power generation activities

Methodology and Standards

Reporting Standards: Emissions are "calculated in accordance with the criteria described in the Non-financial and Sustainability Information Statement (see Appendix V)" and aligned with CSRD/ESRS requirements.

Emission Performance Context

Market Environment Impact: Emission reductions achieved despite operational context of:

• Crude oil processing increase to 43.3 Mt in 2024 (vs 42.1 Mt in 2023)
• Continued upstream production of 571 Kboe/d
• Expanded renewable energy operations (67% increase in renewable generation)

Technology Integration: Emission reductions supported by technology initiatives with 58% of R&D projects focused on low emissions and industrial transformation toward multi-energy hubs.

GHG Removals and GHG Mitigation Projects Financed Through Carbon Credits

Carbon Capture, Storage and Utilization Projects

CCUS Development: "Various projects were undertaken in the United States and Indonesia for the capture, sequestration and storage of CO2, which will help Repsol achieve its objective of reducing emissions."

Synthetic Fuels from CO2: Started work on a 'demo' plant in the Port of Bilbao "capable of producing synthetic fuels for the transportation sector from captured CO2 and renewable hydrogen."

Circular Economy and Carbon Mitigation

Waste-to-Fuel Conversion:

• Using "organic waste, such as used cooking oil to produce 100% renewable fuels that are compatible with the combustion engines"
• Cartagena plant produces renewable diesel and sustainable aviation fuel (SAF) "from organic waste"

Biomass Valorization: Investment in Ingelia S.L., a startup that owns "industrial HTC (hydrothermal carbonization) process technology capable of treating biomass and valorizing it into biochar (a high value-added product with applications as a renewable fuel or biomaterial)."

Technology Development for Carbon Mitigation

Research Initiatives:

• Pyroplast 2.0 project for the "co-processing of alternative oils from tire pyrolysis and solid recovered fuel (SRF) with high plastic content"
• Circular Economy Laboratory for "characterization of raw materials used in new production processes (pyrolysis, gasification and anaerobic and fermentation processes)"

Microplastics Biodegradation: Technology transfer to Darwin Bioprospecting Excellence S.L. of "cutting-edge technology for biodegradation of microplastics through microorganisms, developed by a team of Repsol scientists."

Industrial Transformation for Carbon Mitigation

Multi-Energy Hubs: "We are turning our industrial complexes into multi-energy hubs, capable of processing all sorts of raw materials and waste to manufacture products with a low carbon footprint."

Tarragona Ecoplant: Planned investment of €800 million in a "ground-breaking project in Europe" to "transform urban waste into renewable methanol for the transportation sector and materials to produce various applications."

Renewable Energy as Carbon Mitigation

Renewable Generation Expansion:

• 67% increase in renewable wind and solar power production
• 3,659 MW renewable generation capacity by end of 2024
• 3,106 MW renewable capacity under development

Natural Climate Solutions

Ecosystem Integration: While specific details on nature-based carbon removal projects are not provided in this excerpt, the commitment to "biodiversity and ecosystems" as part of material topics suggests potential involvement in natural climate solutions.

Innovation in Carbon Mitigation Technologies

Technology Lab Focus: Repsol Technology Lab worked on more than 250 projects with 58% focused on low emissions, including projects specifically targeting carbon capture, utilization, and circular economy approaches to carbon mitigation.

All4Zero Hub: Partnership with ArcelorMittal, Holcim, and Iberia in hub that "aims to scale up industrial solutions that target decarbonization and circular economy," with development of "12 technological solutions" during the period.

Anticipated Financial Effects from Material Physical and Transition Risks and Climate-Related Opportunities

Market Volatility and Transition Risks

Energy Price Impact on Financial Performance:

• Oil Price Volatility: Brent averaged $81/bbl in 2024, 2% below 2023, contributing to 16% reduction in Upstream earnings (€1,490 million vs €1,779 million in 2023)
• Gas Price Decline: Henry Hub fell 15% to $2.3/MBtu, significantly impacting results at Marcellus, Eagle Ford, Norway, Trinidad and Tobago, Peru and Bolivia
• Electricity Price Drop: Spanish electricity prices fell 28% to 63 €/MWh, affecting LCG segment performance

Refining Margin Pressure: "International margins fell throughout the period (the production margin indicator came to 6.6 USD/bbl in 2024, while it was 11.1 USD/bbl a year earlier)," contributing to 47% decline in Industrial segment earnings.

Regulatory and Policy Financial Impacts

Spanish Temporary Energy Levy: Negative impact of €-450 million in 2024, included in special items, representing direct financial cost of climate/energy policy measures.

European Competitiveness Challenges: "At present, the energy cost of a refinery or chemical plant in Spain is triple that of the United States, with an average price of 45 euros per megawatt hour (MWh), which makes it difficult for our products to be competitive in other regions."

Climate Transition Investment Requirements

Strategic Investment Allocation: Planned investment of €16,000-19,000 million over 2024-2027, with above 35% focusing on low-carbon businesses.

Technology Investment: More than €500 million committed to technology and digitalization over four years to support transition.

Actual 2024 Investment: €6,800 million invested (10% higher than 2023), with significant portions directed toward:

• LCG: €2,478 million (32% increase) for renewable energy development
• Industrial: €1,274 million for transformation and renewable fuels capacity
• Customer: €409 million for multi-energy infrastructure

Climate Opportunity Revenue Generation

Renewable Energy Business Growth:

• 67% increase in renewable wind and solar power generation
• Renewable generation capacity reached 3,659 MW
• Customer segment earnings up 7% to €659 million, partly driven by multi-energy offerings

Renewable Fuels Market Opportunity:

• Started up Cartagena renewable fuels plant (first in Iberian Peninsula)
• Renewable fuel production capacity increased to 1.25 Mt/year (from 1.00 Mt/year)
• More than 800 service stations now supplying 100% renewable fuel
• Agreements with major customers (Sesé logistics, IAG airline group) for renewable diesel and SAF

Financial Resilience Measures

Credit Rating Maintenance: "The main rating agencies upheld our credit ratings last year, thus confirming the company's robust financial position, which underpins our shareholder return and investment program."

Liquidity Position: High liquidity of €9,453 million maintained despite transition investments.

Cash Generation Adaptation: While free cash flow was negative €-523 million due to transition investments and Sinopec settlement, the company maintained dividend payments and increased shareholder return.

Long-term Financial Strategy Integration

Balanced Capital Allocation: "This update allows for a more robust and cost-effective energy transition, by prioritizing investments in the current integrated portfolio of high-quality assets and low-carbon initiatives, attractive shareholder remuneration and ongoing financial strength."

Shareholder Return Priority: Target to achieve 25-35% of operating cash flow as total payout while financing transition.

Physical Risk Considerations

Operational Disruptions: Lower production due to "force majeure events in Libya" and other weather/physical events affecting operations.

Hydropower Benefits: "Much higher than normal rainfall, allowing hydropower reservoirs to replenish and build up their highest reserves in many years," demonstrating physical climate benefits for renewable generation.

Strategic Financial Positioning

Multi-Energy Value Creation: "This strategy will enable us to create new value chains based on the circular economy to serve as a lever for fostering industrial activity, generating new jobs and driving the economy."

Industrial Transformation ROI: Planned €800 million investment in Tarragona Ecoplant as example of how "industrial companies such as Repsol can contribute with their investments to creating more jobs and wealth."

Policies Related to Resource Use and Circular Economy

Circular Economy Strategic Framework

Strategic Integration: "This strategy will enable us to create new value chains based on the circular economy to serve as a lever for fostering industrial activity, generating new jobs and driving the economy in the depopulated rural areas of Spain."

Industrial Transformation Policy: "We are turning our industrial complexes into multi-energy hubs, capable of processing all sorts of raw materials and waste to manufacture products with a low carbon footprint."

Waste-to-Energy Policies

Organic Waste Utilization: Policy to use "organic waste, such as used cooking oil to produce 100% renewable fuels that are compatible with the combustion engines of our cars and will be essential for decarbonizing heavy road transport of goods or the aviation sector."

Urban Waste Transformation: Planned Tarragona Ecoplant represents policy commitment to "transform urban waste into renewable methanol for the transportation sector and materials to produce various applications."

Raw Material Diversification Policy

Multi-Feedstock Approach: Strategic alliance with Bunge Ibérica to "increase access to a broad portfolio of low-carbon feedstocks needed for the manufacture of renewable fuels."

Alternative Raw Materials: Policy for processing "all sorts of raw materials and waste" in industrial complexes, including tire pyrolysis oils and solid recovered fuel (SRF) with high plastic content.

Technology Development Policies

Circular Economy Research: Established "new Circular Economy Laboratory, for the characterization of raw materials used in new production processes (pyrolysis, gasification and anaerobic and fermentation processes)."

Innovation Investment: Investment in Ingelia S.L. for "industrial HTC (hydrothermal carbonization) process technology capable of treating biomass and valorizing it into biochar (a high value-added product with applications as a renewable fuel or biomaterial)."

Resource Efficiency Policies

Technology Neutrality: Policy to "capitalize on every opportunity offered by the energy transition" while making "the exploration, production and consumption of these fuels more efficient."

Operational Efficiency: High utilization rates policy with Spain conversion refining use of 99.5% and Spain distillation refining use of 88.1%.

Collaboration and Partnership Policies

Industry Collaboration: Participation in All4Zero hub with ArcelorMittal, Holcim, and Iberia that "aims to scale up industrial solutions that target decarbonization and circular economy."

Circular Value Chain Integration: Policy framework for integrating circular economy principles across the value chain from feedstock sourcing through product delivery.

Materials Recovery Policies

Hydrocarbon Waste Processing: Policy for "co-processing of alternative oils from tire pyrolysis and solid recovered fuel (SRF) with high plastic content" through the Pyroplast 2.0 project.

Biomass Valorization: Policy support for technologies that treat biomass and valorize it into high value-added products with multiple applications.

Strategic Business Integration

Multi-Energy Hub Policy: Comprehensive policy to transform industrial sites into integrated facilities capable of processing diverse waste streams and producing low-carbon products.

Circular Economy as Growth Driver: Policy positioning circular economy as "lever for fostering industrial activity, generating new jobs and driving the economy in the depopulated rural areas."

Actions and Resources Related to Resource Use and Circular Economy

Industrial Infrastructure Development

Cartagena Renewable Fuels Plant: Started up "the first plant in the Iberian Peninsula (in Cartagena) that can produce renewable diesel and sustainable aviation fuel (SAF) on an industrial scale from organic waste."

Puertollano Facility Conversion: "Adapting an existing diesel processing unit at our Puertollano industrial complex to transform it into our second renewable fuels plant in late 2025 or early 2026."

Tarragona Ecoplant Investment: Planned investment of €800 million in a "ground-breaking project in Europe in which we plan to invest €800 million and which enable us, as a further example of the circular economy in action, to transform urban waste into renewable methanol for the transportation sector and materials to produce various applications."

Technology Development Actions

Circular Economy Laboratory: "Start-up of the new Circular Economy Laboratory, for the characterization of raw materials used in new production processes (pyrolysis, gasification and anaerobic and fermentation processes)."

Pyroplast 2.0 Project: "Successful completion of the Pyroplast 2.0 project for the co-processing of alternative oils from tire pyrolysis and solid recovered fuel (SRF) with high plastic content."

HTC Technology Investment: Investment in Ingelia S.L., a startup with "industrial HTC (hydrothermal carbonization) process technology capable of treating biomass and valorizing it into biochar (a high value-added product with applications as a renewable fuel or biomaterial)."

Research and Development Activities

Technology Lab Projects: Repsol Technology Lab worked on more than 250 projects during 2024, with significant focus on circular economy solutions.

Microplastics Technology: Technology transfer to Darwin Bioprospecting Excellence S.L. of "cutting-edge technology for biodegradation of microplastics through microorganisms, developed by a team of Repsol scientists."

Strategic Partnerships and Alliances

Bunge Ibérica Alliance: "Strategic alliance with Bunge Ibérica that will allow us to increase access to a broad portfolio of low-carbon feedstocks needed for the manufacture of renewable fuels."

All4Zero Collaboration: Partnership with ArcelorMittal, Holcim, and Iberia in hub that "has more than 20 collaborating entities and aims to scale up industrial solutions that target decarbonization and circular economy, began development of the first 12 technological solutions during the period."

Investment and Resource Allocation

Industrial Segment Investment: €1,274 million invested in Industrial segment in 2024, supporting transformation initiatives and circular economy projects.

Technology Investment: More than €500 million committed over four years to technology and digitalization, supporting circular economy innovation.

Feedstock Diversification Actions

Organic Waste Utilization: Using "organic waste, such as used cooking oil to produce 100% renewable fuels that are compatible with the combustion engines of our cars."

Alternative Raw Material Processing: Processing capabilities for "all sorts of raw materials and waste to manufacture products with a low carbon footprint."

Operational Implementation

Renewable Fuel Production: Increased renewable fuel production capacity to 1.25 Mt/year in 2024 (from 1.00 Mt/year in 2023), demonstrating scaling of circular economy applications.

Multi-Energy Hub Transformation: Converting industrial complexes into facilities "capable of processing all sorts of raw materials and waste to manufacture products with a low carbon footprint."

Market Development Actions

Product Distribution: More than 800 service stations now supply 100% renewable fuel produced from circular economy processes, with target to reach 1,500 stations.

Customer Agreements: Signed agreements with major customers like "logistics group Sesé" and "airline group IAG" for supply of renewable diesel and SAF produced through circular processes.

Innovation Ecosystem Development

Venture Capital Investment: Corporate venturing investments in startups developing circular economy technologies, including biomass processing and microorganism-based solutions.

Collaborative Innovation: "Madrid Vuela Sostenible" initiative developed jointly with IMDEA Energía, Ariema and EvoEnzyme for "technologies that involve circular economy and renewable hydrogen for the production of sustainable aviation fuel (SAF)."

Resource Recovery Implementation

Waste Stream Integration: Active processing of diverse waste streams including used cooking oil, tire pyrolysis oils, urban waste, and biomass into valuable products.

Value Chain Optimization: Creating "new value chains based on the circular economy" that serve multiple purposes including industrial activity, job creation, and rural economic development.

Resource Inflows (E5-4)

Repsol's activities are structured into four business segments, utilising resources that include hydrocarbons of mineral and biological origin, as well as other materials necessary for the manufacture of its products, such as steel, cement, and chemical products. The company also uses water captured from both natural sources of saltwater (oceans and seas) and freshwater (surface and underground resources), as well as from other alternative sources.

Resource Inflow Metrics (2024)

Note: The sustainable origin of the indicated biological materials is audited annually under the ISCC Plus or Recyclass certification schemes, and the resulting data are sent to the corresponding administrations.

Historical Comparison – Processed Raw Material (thousands of tons)

Calculation Methodology

Materials that enter a Repsol business area for the first time are considered in the calculation of resource inputs, avoiding accounting for those that are transferred to another business area once they have been transformed, as is the case with fuels sold by the Client's business which are manufactured by Refining. Packaging data are also not included because calculations indicate their quantities are not significant.

Business-specific considerations:

• E&P business: Data corresponds to direct measurement of gross oil and natural gas production, consolidated monthly in internal systems. Auxiliary materials are not included since their volume is not significant (e.g., materials for construction and completion of unconventional wells represent less than 5% of resources used by E&P and less than 1% of the company's total resources).

• Refining business: Data obtained by calculation from material balances recorded from direct measurements in the company's own management control systems. Natural gas used as both raw material and fuel is included.

• Chemicals business: Data from direct measurements in the management control system, classified as raw materials, auxiliary materials and other market materials. Natural gas used as both raw material and fuel is included.

• Low Carbon Generation business: Does not use significant amounts of non-renewable resources such as hydrocarbons, so it is excluded from the metric. Critical minerals are also excluded due to non-significant risk assessment according to the Critical Minerals Observatory report (2024).