Climate change

Galp aims to maintain a balanced and integrated business portfolio, focused on the integration of low carbon technologies.

Responding to the energy challenges

The energy paradigm in the world is changing and Galp aims to play an active role in this transformation, namely by:

  • adapting our portfolio to future needs, whenever possible and in synergy with the current business;
  • consolidating the knowledge required for diversifying our assets, with a consequent mitigation of risks resulting from its carbon intensity reduction;
  • developing innovative and differentiating solutions that promote the transition into a low-carbon economy supported by renewable energy sources.

In order to guarantee the sustainability of the Company, we test the resilience of our strategy to different scenarios of the future energy paradigm. Anticipating the risks and opportunities connected to every scenario is critical to maximising long-term value creation.

We have built four contrasting but equally plausible scenarios, considering different levels of technological and political regulation disruption, and we deem these uncertainties critical for the energy sector.

Total primary energy demand mix in 2040 by scenario (bn toe)

 

 
IEA - International Energy Agency; CPS - Current Policies Scenario; NPS - New Policies Scenario; SDS - Sustainable Development Scenario (2º C scenario).

For Galp to maintain a sustainable development in the various projected scenarios, in our strategy we reflect the main guidelines that aim at ensuring a resilient and agile organisation, prepared for a complex and uncertain world.

Galp’s strategy remains focused on developing a portfolio that is supported by innovative and differentiating solutions, responding to the challenges of the transition into a low-carbon economy.

 

We manage risk as an opportunity

Aware of the risks and opportunities stemming from a transition into a low-carbon economy, Galp has made a strategic commitment to gradually diversify its portfolio into lower-carbon energies and new business models.

The risks and opportunities connected to climate integrate the Company's strategic formulation processes and are overseen by the Board of Directors (BD) and the Executive Committee (EC) through the Sustainability Committee and the Risk Committee.

Carbon management throughout our value chain

Galp integrates sustainability requirements that are considered in the decision-making processes connected to the various project development stages, throughout their life cycle.

We believe that by incorporating a carbon price ($40/ton) as an appraisal criterion in medium and long-term investment projects, we are working towards adopting more efficient and sustainable technological solutions, with a direct impact on the reduction of the activities’ carbon intensity.

We support the European Emissions Trading Scheme as a European Union (EU) reference instrument within the European framework for energy and climate. We believe in the effectiveness of this market mechanism and in the accountability it promotes to reduce emissions in the electricity sector and in industry. Furthermore, it comprehends appropriate mechanisms to protect against carbon leakage, with the aim of protecting the EU industry after 2020.

Metrics and targets

We have been continuously reducing the carbon intensity of our activities and monitoring our environmental footprint.

We set goals and targets to assess and manage risks and opportunities according to our activity’s materiality.

We actively and transparently participate in global initiatives on climate change

Joining the Task Force on Climate-related Financial Disclosures

We take on the importance of a responsible leadership that integrates climate challenges into its strategy. Galp's support to the Task Force on Climate-related Financial Disclosures reflects a commitment to promoting a more balanced relationship between meeting energy needs and minimising our operations’ carbon intensity, as well as to a transparent reporting of climate-related information.

Learn more about this initiative.

CDP

Galp was the only company in the energy sector to achieve an "A" score in the climate ranking.

In 2017, for the third consecutive year, Galp was acknowledged by the CDP - Disclosure Insight Action as a leading company in climate change strategy and management. For the first time in the water category, Galp was acknowledged as a leader in water reduction, reuse and recycling practices. Galp is considered one of the 25 companies to achieve the highest score (A List) in both climate and water categories.

Learn more about this initiative.

Zero Routine Flaring by 2030 of the World Bank Group

In 2015, in the capacity of exploration and production operators, we have endorsed the Zero Routine Flaring by 2030 initiative. Our goal is to scale the new E&P projects to zero flaring under normal operating conditions.

Learn more about this initiative.

We mean business

We have joined the We Mean Business coalition, integrated in the NAZCA Tracking Climate Action initiative of the United Nations Framework Convention on Climate Change (UNFCC).

This platform, which consists of a group of organisations that work with the business sector and investors worldwide, promotes the transition into a low-carbon economy. The platform also fosters proactive climate action, encouraging the creation of new political milestones regarding climate change.

Learn more about this initiative.

Roadmap to Carbon Neutrality in Portugal by 2050

The Portuguese Government launched this initiative with the aim of studying the technical and economic viability of trajectories for reducing greenhouse gas (GHG) emissions in Portugal by 2050, for a competitive and low-carbon economy. Galp has actively followed the development and implementation of this study as a stakeholder and in the working group at BCSD Portugal.

Learn more about this initiative.

Meet 2030

Galp promoted and led the Meet 2030 project, which was coordinated by BCSD Portugal, in collaboration with the other associated companies. Its objectives were the following:

  • creating scenarios for Portugal to achieve carbon neutrality in 2030;
  • identifying potential new economic activity sectors, innovation in processes and products, as well as the competitive advantages for companies to maintain medium and long-term sustainable growth;
  • identifying solutions with higher added value and contributing to a policy action that helps define strategic priorities both at a national and international level.

The study estimates the economic growth of Portugal, considering the carbon intensity reduction as a vector of growth and economic development and as a catalyst for change in business models, according to the Paris Climate Agreement (COP 21).

Learn more about this initiative.

Development of new energy models for a new mobility paradigm

As a leading player in Portugal we have been analysing and stimulating new energy models for mobility. Although the long-term introduction rate of electric vehicles (EV) is uncertain, it can be accelerated in a regulatory scenario that is more favourable to the decarbonisation of the economy.

As a leading player in Portugal we have been analysing and stimulating new energy models for mobility. Although the long-term introduction rate of electric vehicles (EV) is uncertain, it can be accelerated in a regulatory scenario that is more favourable to the decarbonisation of the economy.

Further information about climate change

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