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 on what concerns 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 respond to the responsibility of reducing carbon emissions from Galp's operations and simultaneously expanding business activities, but also to address the future societal challenge of satisfying an increasing energy demand with a lower carbon footprint.
A carbon intensity (or emissions intensity) is a ratio that reflects the amount of GHG emissions per unit of energy delivered. This metric reflects the operational efficiency and emissions of production processes related to the energy that will be delivered to consumers, and as such is an important tool in monitoring and assessing the environmental performance of integrated energy companies and their future strategies.
Galp’s carbon intensity metric quantifies the amount of CO2 equivalent emissions per unit of energy supplied (gCO2e/MJ) to the end consumer. Non energy products such as lubricants and chemicals and corresponding emissions are not included in this metric.
This metric includes all energy products sold by Galp, or any subsidiary, to end consumers (oil based liquid fuels, gas and electricity) and includes emissions (scope 1, 2 and 3) from the full life cycle of these products[1] - 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. In orange emissions calculated based on Galp’s performance and in grey Emissions calculated considering external emission factors and use of sold product emissions.
Emissions data is collected from our activities in the Upstream, Refining & Midstream, Commercial, Renewables and New Businesses segments. If Galp has operational control over a given activity, 100% of scope 1 and 2 emissions are taken into account. If the Company does not have operational control over an asset, its equity in the corresponding operations is taken into consideration when accounting for emissions and energy produced.
The carbon intensity methodology was verified by an independent external entity (PwC). PwC verified that the methodology is properly applied and referenced and that the assumptions and input data used in the calculations performed are reasonable and duly substantiated. PwC also verified that the input values and assumptions were inserted in an appropriate and precise manner.
[1] the only exception is electricity, where emissions related to the extraction and transport of fuels used in electricity generation are not estimated due to lack of data and low materiality.