Transparency and corruption prevention

Transparency

Transparency, together with other Galp´s values and principles, serves as a core stone for good professional conduct and facilitates the development of a reliable and lasting relationship with all interested parties.

In compliance with chapter 10 of the Directive 2013/34/EU transposed to Portuguese law under the Decree-Law n. 98/2015 and article 245-B of the Portuguese Securities Code, Galp prepares and incudes in the Annual Management Report the Payments to Public Entities Report, supporting the concept of transparency in revenue flows from oil and gas activities. It allows citizens to access the information they need to hold Public Administrations (which include any national, regional or local authority of a European Union member State or of a third country, a department, agency or entity that is a subsidiary thereof, which includes a national oil company) accountable for the way they use funds received through taxes and other agreements.

The Payments to Public Entities Report provides an overview of the Payments to Public Administrations made by Galp, and its subsidiaries, covering each full year whenever such companies do so as a result of their activities of exploration, prospection, discovery, development and extraction of oil, natural gas deposits or other materials.

The Report excludes payments made by entities over which Galp has joint control and payments made by entities/joint ventures over which Galp has no operatorship.

For more information, please see the Galp Report on Payments to Governments in 2021.

Galp recognises, through the Tax Policy, the importance of adopting and implementing international best practices in terms of tax transparency.

Corruption prevention

In the effort to prevent corruption, Galp prohibits all corrupt practices in all its active and passive forms, including any attempts to practice it. For this purpose, Galp has approved the Corruption Prevention Policy, making commitment to promote the full respect for the Ethics and Conduct Code and laws, and to pursue the best practices in transparency in line with the United Nations Convention against Corruption from 2003 (Principle 10 of UN Global Compact).

In compliance with the Corruption Prevention Policy, Galp' and its subsidiaries’ businesses and activities should follow a framework of transparency, correction, professionalism, rigor, good faith and full respect by the anti-trust laws. The Prevention of Corruption Policy also sets standards of action which Galp’s shareholders should respect and comply.

In order to monitor the compliance with the Corruption Prevention Policy, we have a monitoring committee – the Ethics and Conduct Committee.

Galp recorded no cases of corruption in 2021 nor for the preceding three years.

In 2021, in order to promote upright behaviours, a transversal e-learning course with topics related to corruption and conflict of interests was promoted, and 2,500 people completed the course.

Prevention of money laundering and financing of terrorism policy

The policy on the prevention of money laundering and terrorism funding establishes the commitment to fight every active or passive form of crime profit skimming to cover up its illegal sources.

Conflicts of interest prevention

In accordance with international corporate governance recommendations and practices, Galp established a set of internal control rules and procedures with a view to prevent conflicts of interest. One of them is with respect to related parties relevant transactions. The Audit Board verifies whether there is a conflict of interest in transactions with related parties, and Company´s transactions with related parties is subject to the prior opinion of that body. For more information, please see Transactions with Related Parties Standard. Other measure was the approval and disclosure on the website (link) of the internal standard Management of Conflicts of Interest, applicable to all employees and members of the Group companies corporate bodies, which stipulates the rules of prevention, avoidance, reporting and handling of conflicts of interests ethically and responsibly.