Every year, Galp monitors the carbon footprint of its activity and value chain, including the scopes 1, 2 and 3.
- We are committed to the integral analysis of our activity and value chain emissions, including not only direct emissions from our operations (scope 1), but also the indirect emissions from the electricity we have acquired (scope 2) and our value chain activities (scope 3).
We monitor our carbon footprint on a regular and systematic basis, and we take its evolution into account when defining our strategy, objectives and goals.
In 2018, Galp reviewed the methodology for calculating the carbon footprint, promoting a more transparent mapping and reporting of the indirect emissions, including more emissions from scope 3, such as: purchased goods and services, logistics activities, business travels, processing of sold products, use of sold products and investments. In 2021 Galp revised its carbon footprint boundaries to better align it with the emissions values used in the calculation of the carbon intensity metrics. Therefore, the emissions from nonoperated Upstream assets were included in the scope 1 and 2 emissions calculation (previously accounted in Scope 3 – Category 15 – Investments). The calculation of the Scope 3 – Category 11: Use of sold product emissions is now aligned with IPIECA’s throughput method, meaning that emissions from all refinery output are being considered in the calculation of this category. The calculation of Scope 3 – Category 10: Processing of sold products was also changed to reflect the processing of sold crude in third party refineries. This update is in line with the best practices applicable to the Oil & Gas sector, as well as the materiality analysis of the emission sources.
Carbon Footprint
Emissions resulting from our activity and value chain in 2021.
t CO₂e - tonnes of carbon dioxide equivalent.
Methodological notes: Galp's carbon footprint is calculated on an annual basis using the methodological framework established by The Greenhouse Gas Protocol – Corporate Accounting and Reporting Standard, supplemented by the relevant industry adaptation promoted by the International Petroleum Industry Environmental Conservation Association (IPIECA) – Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Gas Industries.
Assumptions: 1) The Global Warming Potential (GWP) for 100-year time horizon were considered. Source: IPCC Fourth Assessment Report (AR4). 2) Includes total emissions of Flaring Gas (Routine and Non-Routine).
See our carbon footprint in more detail in Galp’s performance indicators
Carbon intensity
The energy paradigm in the world is evolving and Galp aims to play an active role in this transformation, joining the efforts to address climate change and meet the goals set by the Paris Agreement.
Galp is committed to ensure integrity and transparency in the reporting of its environmental performance, including in relation to Greenhouse Gases (GHG) emissions.
At Galp we have developed a methodology to calculate and assess carbon intensity of the products we sell and the energy we produce, that allows us not only to verify the impact of the challenge of reducing carbon emissions from Galp's operations and simultaneously to meet increasing customer and society demand regarding a lower carbon footprint.
Two distinct approaches for the calculation of carbon intensity were developed with the purpose of calculating and assessing the evolution of the carbon emissions output from the energy products sold and produced by Galp.
These methodologies were defined and consolidated during 2021 and reflect the reality of the Company up to this date, but might be updated in the future to incorporate changes in regulation, new methodological standards and available technology. In the development of these methodologies the following GHG reporting frameworks and guidances were used as key references and guidelines: GHG Protocol, Petroleum Industry Guidelines (IPIECA, API and IOGP), Science Based-Target Initiative (SBTi) consultation guidance documents.
All downstream sales-based approach
Allows the quantification of CO2 equivalent emissions per unit of all energy delivered to society by Galp. The metric includes all the emissions associated with Galp’s operations (scope1+2) as well as indirect emissions (scope 3) occurring in the value chain of all sold products, including use of sold products (Galp’s clients, other operators and exports) and 3rd parties purchases.
This metric seeks an alignment with the boundaries and value chain integration included in the latest SBTi guidance for Oil, Gas and Integrated Energy companies (version 10th August 2020) and IPIECA (Global Oil and Gas Industry Association) guidance. This results in the inclusion of all refined oil products, including exports and sales to other operators, as Galp sales and not just products sold to Galp’s clients, differently from the sales intensity announced in 2020.
(Baseline: 76.3 gCO2e/MJ in 2017)
This metric includes all energy products sold by Galp, or any subsidiary (all refined oil-based liquid fuels, gas, electricity, biofuels and hydrogen) and includes emissions (scope 1, 2 and 3) from the full life cycle of these products - production, transportation, transformation, distribution and consumption (use of sold product). The same emissions are considered for products purchased from third parties and sold or transformed by Galp.
Schematic representation of the balances and integrations performed in Galp’s energy products value chain. Orange: emissions calculated based on Galp’s performance; Grey: emissions calculated considering external emission factors and use of sold product emissions.
