Materiality

The evaluation of issue materiality enables Galp to identify key aspects relevant to our stakeholders and to the Organisation. By being aware of the most relevant factors, we increase our capability to formulate an appropriate strategy that results in the success and sustainability of the Organisation.

At Galp, we have implemented a set of processes that ensures that sustainability issues are identified and prioritised.
We adopt guidelines from the Global Reporting Initiative and the 5-Part Materiality Test proposed by AccountAbility, by the United Nations Environment Program and Stakeholder Research Associates.
Use of these references provides guidance to understanding the main challenges Galp faces and its ability to create value in the long term.

Materiality assessment

Materiality assessment identifies key aspects and is implemented by adopting the following four steps:

 
  1. Identification of the issues that are potentially relevant for Galp which need to be considered in the process of reviewing the materiality matrix, identified through an analysis of the context and of the global, sectoral and organisational trends.
  2. Internal evaluation of the impact of each of the issues on Galp's vision, strategy and performance. The impact of the issues should be evaluated taking into consideration their magnitude and probability of occurrence. At this stage, the key stakeholders that need to be involved in the materiality review process should be identified.
  3. External evaluation of the importance of the issues, from the perspective of key stakeholders (investors and others), by conducting a consultation process with these stakeholders.
  4. Review of the issues’ materiality matrix, presenting the most relevant subjects under two dimensions, the key stakeholders' perspective and the organisation's perspective.

Materiality matrix

Our materiality matrix, reviewed in 2016, is based on analysis of several issues that have been evaluated with regard to their importance, which represent:

  • The way in which the issue reflects significant economic, social and/or environmental impacts (positive or negative) on Galp.
  • How the issue can decisively influence stakeholders’ assessment of Galp and/or their decisions related to the Company.
  • Whether the issue has the potential to add or remove value from the Company or to the society/community in which it operates, in particular its key stakeholders.

Bearing in mind the strategy that reflects the commitment to generate sustainable value, in 2017 we reviewed the materiality matrix, prioritising in the whole value chain the most relevant aspects for our business and our stakeholders.

In order to have a correct perception of the definition and scope of the 17 material subjects during the internal and external relevance evaluation process, the following context information was provided:

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