Carbon Metrics

Carbon Metrics

Galp contributes to the development of appropriate measures to overcome the energy and climate challenges.

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. 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.

Emissions resulting from our activity and value chain in 2020.

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 our carbon intensity that allows us not only to aim 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.

Production-based approach

Allows the quantification of CO2 equivalent emissions per unit of primary energy produced by Galp (gCO2e/MJ). 

This metrics accounts for scope 1 (direct) and 2 (indirect) emissions from the Company’s business activities and category 11 from the GHG Protocol (Use of sold products) considering the emissions associated to the use (combustion) of all oil and gas production from Galp. Excludes a share of hydrocarbons which are thought to have non energy use (chemicals, plastics, asphalt, etc) according to SBTi guidance. 


 
(Baseline: 93 gCO2e/MJ in 2017)

Organisational boundaries

When accounting and reporting GHG emissions it is important to clearly establish the organisational boundaries that are used to consolidate the data. Galp’s methodology considers an equity share approach in which emissions are accounted proportionately to the Company’s share of equity in each operation, independently of the Company’s control / ownership over the operation. This approach reflects the percentage of economic interest, which is consistent with international financial accounting and reporting standards.

The methodology considers Galp’s operations in the Refining and Midstream segments in Portugal, Commercial segment in Iberia and Africa, participation interests in Upstream projects in Brazil, Angola, Mozambique, São Tomé e Principe and Namibia and Renewable and New Business projects worldwide.

Assurance

An independent external expert, PwC, verified the methodology adopted in the Carbon Intensity Model (All downstream sales-based approach and Production-based approach). PwC verified that the methodologies are adequate, properly identified and referenced and that the assumptions and input data used in the calculations performed are acceptable, reasonable and are duly substantiated. It was also verified that the input values and assumptions were inserted in an appropriate and precise manner in the Carbon Intensity Model, considering the orientations and references of the “Carbon Intensity Methodology” document.

Methodology

For more information on Galp’s carbon intensity methodology approach, consult our Carbon Intensity Methodology.

 

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