Galp seeks to create a strategy that tackles the current and future context of energy and mobility, ensuring Galp’s resilience and agility in an increasingly complex, fast, and ever-changing world.
We are focused on the development of sustainable businesses that generate value, as an integrated energy Company, through a diversified portfolio of energy generation, ranging from oil and natural gas production to renewable energies, with an industrial background geared towards the new market needs, through the adaptation, efficiency and continuous transformation of its processes, and with more innovative commercial solutions that promote the energy transition of our customers and consumers.
Climate change risks
Galp has been working on the categorisation of physical and transition climate risks in its activities. This analysis aims to assess the resiliency of our strategy to different scenarios, as well as identify the most relevant associated risks and opportunities.
To ensure proper management of these risks, Galp’s Risk Management Policy defines objectives, processes and responsibilities that enable Galp to establish a solid risk management structure. It also addresses Galp’s commitment to manage the inherent exposure in accordance with the Company’s Risk Appetite, ensuring compliance with legislative, regulatory and ethical conduct requirements.
Based on the guidelines established in the Risk Management Policy, Galp identifies, assesses and manages the risks and opportunities inherent to its strategy, including emerging risks and opportunities. In 2021, climate change has been identified as a top risk.
Galp integrated the TCFD recommendations in the identification of these climate change related risks. Chronic (e.g. longer-term shifts in climate patterns like sea level and mean temperatures rise, changes in wind and precipitation patterns, etc) and acute (e.g. increase severity of extreme weather events such as cyclones, hurricanes, or floods) physical variables as well as market variables (such oil prices, CO2 prices, electricity prices, refining margins and oil & gas demand) were collected in order to estimate the impact of climate change risks in Galp’s operations and value at risk.
As part of the mitigation and adaptation plan with measures to avoid or reduce the associated risks and foster opportunities, Galp has presented a refreshed strategy to reshape its Portfolio, refresh Relations and reenergise People. Galp is going to scale-up the renewables business, expand the position in the electricity value chain and develop new energies to accelerate the decarbonisation path, with the ambition to become net carbon neutral by 2050.
For more information on Galp refreshed strategy, please see our Strategy.