Oversight and management of GHG emissions

Galp is committed to ensuring solid governance of climate-related risks and opportunities, while also measuring, managing, and reducing greenhouse gas (GHG) emissions from its operations and the energy it supplies to customers.

The Executive Committee and Sustainability Committee regularly receive updates on GHG performance metrics, progress on the Sustainability Roadmap, and significant climate-related risks and opportunities. Additionally, the Risk Management Committee supports and monitors the development and implementation of Galp’s risk management strategy and policy.

Climate-related impacts, risks and opportunities

Galp identifies, assesses, and manages its climate-related impacts, risks and opportunities through complementary methodologies and tools, including double materiality assessment and Company-wide and project-specific risk assessments, which account for emissions and the impact of carbon prices.

To address the risks and opportunities associated with the transition to a low-carbon economy, Galp actively monitors political, technological, market and legal developments, and reputational risks within the sector and integrates these insights into the analysis of the current portfolio and business cases for new investments.

Climate change mitigation at Galp

The current volatility in energy markets and geopolitical instability underscores both the importance and the complexity of the energy transition amid growing demand.

In this context, Galp is committed to creating sustainable, long‑term value, grounded in a pragmatic and disciplined approach to the challenges of decarbonisation. The Company’s strategy involves balancing investments in low-carbon solutions while safeguarding a secure and affordable energy supply. Through this pragmatic approach, it is possible to responsibly maximise resilience and returns, promoting the decarbonisation of our operations and the strategic evolution of our energy products portfolio.

Taking into account the ongoing evolution of its portfolio, as well as the evolution of market demand and regulatory developments in the energy transition space, Galp's energy transition plan will be published upon maturing its portfolio assessment, while always ensuring alignment with disclosure requirements.

As part of its progress towards a lower carbon energy system, the Company aims to ensure the resilience of its portfolio by being involved on the development of projects to reduce the carbon intensity of its activities and progressively reduce emissions from its energy supply operations, whilst increasing the integration of renewable energies.

Galp’s Upstream portfolio is characterised by its high efficiency and low carbon intensity at c.10.96 kgCO2e/boe, below half of the intensity reported by the members of the Oil and Gas Decarbonisation Charter (24 kg CO2e/boe), which brings together 53 companies responsible for c.40% of global crude production.

On the downstream industrial side, Galp has been progressively reducing its activities’ carbon footprint and continues to be actively involved in the development of initiatives that will allow to further reduce emissions and increase the production of energy products with lower carbon intensity. A clear example of that are the large scale projects currently being built in Sines, our key industrial site, including the first 100 MW electrolysers for renewable hydrogen production and an 270 ktpa capacity advanced biofuels unit, capable of producing low carbon fuels for road, aviation and maritime transport. Additionally, further investments in operational energy efficiency and electrification are planned to take place at Sines.

Moreover, Galp has been developing a significant renewable power generation capacity, which plays a crucial role in supporting the development of other lower carbon businesses across the group.

Investment criteria and ESG integration

The Company's investment criteria promote investments in value-accretive opportunities and projects that align with Galp’s strategy, ESG standards, and regulations. This ensures that projects are resilient, deliver favourable returns, and adhere to the Company's risk appetite, strategic objectives and sustainability guidelines and policies.

Before its approval, each material project undergoes an evaluation, including alignment with the EU’s Sustainable Investment Taxonomy and an ESG risk analysis, that incorporates the impact of GHG emissions and other ESG risks into the forecast of the project’s Free Cash Flow.

Integrating carbon pricing in investment approval

Galp recognises that internalising the costs of GHG emissions, such as through an internal carbon price, is a powerful mechanism for evaluating climate-related sustainability and incentivising investments in lower-carbon solutions. By incorporating a global carbon price into the evaluation of new projects and modifications to existing ones, where such mechanisms are applicable, and analysing the impact of related emissions within its decarbonisation metrics, Galp ensures that low carbon intensity projects are prioritised when investment criteria are met.

The carbon pricing assumptions adopted by Galp are aligned with external long-term energy transition scenarios, reflecting current legislative frameworks and proactively anticipating future regulatory developments.

Climate risk assessment

Galp continues to strengthen its processes for identifying, assessing, and managing climate-related risks and opportunities, with the aim of deepening its understanding of the resilience of its current and potential assets, as well as its strategy.

In this context, the Company is developing methodologies, structures and tools to identify and assess climate‑related risks and opportunities and to quantify their direct and indirect operational and financial impacts. These analyses cover acute and chronic physical risks under different climate scenarios, including credible pathways to carbon neutrality, as well as high‑emission scenarios. The risks will be assessed over the short, medium and long term, across the various businesses and geographies where Galp operates or may operate in the future.

Based on these assessments, plans will be defined for managing and mitigating the main climate‑related risks identified.

Previous assessments of physical climate risks have indicated that the Organisation has relatively low exposure to chronic physical risks. The most significant acute physical risks identified were extreme wind and rainfall events. Although low- impact, these events can still damage facilities and equipment, disrupt port access due to changes in swell patterns, interrupt operations and logistics chains, and compromise the supply of raw materials.

Climate related metrics and targets

Galp monitors its emissions and decarbonisation progress through several Key Performance Indicators (KPIs) and Objectives and Key Results (OKRs). These metrics include those aligned with the Sustainability Roadmap as well as project and business-specific measures.

Following the recently announced evolutions of its asset portfolio, Galp is conducting an in‑depth analysis of the implications, including its emission‑reduction objectives. This work aims to ensure a solid foundation for defining future targets that are both ambitious and credible, as well as for developing an energy transition plan aligned with the Company’s long‑term strategy and sustainability vision.

Galp’s strategic direction remains clear: promoting low-carbon energy solutions will be fundamental to addressing the challenges and opportunities of the energy transition. It will also enable the continued decarbonisation of the Company's portfolio and energy supply, respond to customer needs, and uphold alignment with society and EU targets.

Galp recognises the need for standardised methodologies for GHG and target setting within the oil and gas sector. Such harmonisation would improve the comparability of performance and emissions targets across the industry, particularly those addressing  indirect value chain emissions (Scope 3). The Company actively monitors developments around emerging voluntary reporting frameworks, target-setting standards, and relevant regulations.

GHG Emissions

Gross Scopes 1, 2 and 3 GHG emissions

Galp calculates Scope 1, 2, and 3 emissions in line with international standards, including the GHG Protocol and IPIECA's Oil and Gas sector guidance. Emissions are estimated for CO₂, CH₄, and N₂O, converted into CO₂-equivalent using IPCC’s AR6 Global Warming Potentials.

Scope 1 & 2

Emissions are based on primary energy consumption data, converted using appropriate factors. In refining processes, mass balances are used where applicable. Conversion factors are sourced from: primary data from direct analysis of fuels (e.g., for refinery emissions); national emissions inventory reports; and other public data, when necessary. Scope 2 emissions are reported using both:

Market-based method: Uses supplier-specific emission factors. Galp has sourced 100% renewable electricity (with guarantees of origin) for all operations in Portugal since 2021 and for renewable energy parks in Spain since July 2024.
Location-based method: Uses publicly available data from the local electricity grid.

Scope 3

Galp reports Scope 3 emissions for material categories, calculated from activity data (c.80% in 2025), by applying the adequate conversion and emission factors. Key categories include:

Category 1 - Purchased Goods and Services: Life-cycle emissions of fuels/raw materials acquired from 3rd parties for processing and re-sale (e.g. natural gas, LNG, crude, diesel, jet, biofuels, etc.).
Category 3 - Fuel and Energy-related activities: Life-cycle emissions from the production of electricity acquired for re-sale.
Category 4 - Upstream transportation and distribution: Emissions from the transportation of imported raw materials and fuels, and the distribution of liquid and gaseous fuels.
Category 6 - Business travelling: Emissions from air and rail travel by employees.
Category 10 - Processing of sold products: Emissions from the processing of produced crude oil sold to third parties.
Category 11 - Use of sold products: Emissions from combustion of sold energy products, applying IPIECA's net volume accounting method. This includes refinery throughput and sold gas volumes, since these are the points in the corresponding value chains where the largest amount of potential sold product is transferred.

The excluded categories are considered not material to the oil and gas sector or to Galp specifically.

Organisational boundaries: The emissions reported are estimated in an operational control approach but also include emissions from Upstream assets based on Galp’s equity participation, as well as emissions from operated exploration campaigns.

Methane

Methane emissions represent a small share of the Company’s total operational emissions, standing at c.0.5% of Scope 1 and 2 emissions in 2025, and are mostly associated with non‑routine flaring in third‑party‑operated Upstream assets. However, Galp seeks to reduce methane emissions in its operated assets, such as the Sines refinery.

All operators of Galp's producing upstream assets are signatories to the OGCI Methane Reduction Initiative, the Oil and Gas Methane Partnership (OGMP) 2.0 and the Oil and Gas Decarbonisation Charter, meaning they are committed to improving measurement and reporting of these emissions, to end routine flaring in upstream operations and have near-zero upstream methane emissions by 2030.

Acting on methane emissions

The Sines refinery is the asset operated by Galp where methane emissions are most relevant. As such, several measures have been put in place to mitigate these emissions over the years. The refinery has installed a flare recovery unit in one of its flares to reduce flaring and associated methane emissions, as well as a vapour recovery unit to minimise the emissions of diffuse volatile organic compounds (VOC) including methane from loading and unloading hydrocarbons.Fugitive and diffuse emissions are also monitored and addressed by its annual LDAR (Leak Detection and Repair) Program. The refinery is developing a VOC management plan for the integrated management of all fugitive and diffuse emission reduction and monitoring initiatives of to further minimise operating VOC emissions.

Galp’s Carbon Footprint

Gross Scopes 1, 2, 3 and Total GHG emissions (tonCO2e)	2025	2024	Retrospective (2025/2024)
Scope 1 GHG emissions
Gross Scope 1 GHG emissions	2 653 634	3 128 177	-15%
By business unit:
Upstream	428 594	462 352	-7%
Industrial & Energy Management	2 219 745	2 660 016	-17%
Commercial	184	182	1%
Renewables & New Businesses	80	152	-47%
Others	5 031	5 476	-8%
By source:
Combustion	1 698 819	1 902 670	-11%
Flaring	144 603	174 913	-17%
Fugitive	5 158	13 865	-63%
Venting (E&P)	-	-	-
Process	805 054	1 036 730	-22%
Percentage of Scope 1 GHG emissions from regulated emissions trading schemes (%)	83%	84%	-1%
Scope 2 GHG emissions
Gross location-based Scope 2 GHG emissions	30 939	24 421	27%
Gross market-based Scope 2 GHG emissions	7 517	8 820	-15%
By business unit:
Upstream	2	-	441%
Industrial & Energy Management	433	450	-4%
Commercial	7 007	7 597	-8%
Renewables & New Businesses	53	738	-93%
Others	24	35	-31%
Significant Scope 3 GHG Emissions
Gross indirect (Scope 3) GHG emissions	40 239 263	43 133 399	-7%
By business unit:
Upstream	1 251 923	1 166 581	7%
Industrial & Midstream	30 847 427	34 388 514	-10%
Commercial	8 135 159	7 570 752	7%
Renewables & New Businesses	1 101	323	241%
Others	3 653	7 229	-49%
By category:
1. Purchased goods and services	4 051 412	3 941 293	3%
3. Fuel and energy related activities (not included Scope 1 or Scope 2)	1 811 634	1 781 707	2%
4. Upstream transportation and distribution	722 807	576 150	25%
6. Business travelling	3 653	7 229	-49%
10. Processing of sold products	1 251 923	1 166 581	7%
11. Use of sold products	32 397 835	35 660 439	-9%
Total GHG emissions
Location-based	42 923 837	46 285 806	-7%
Marked-based	42 900 415	46 270 397	-7%

Avoided emissions

Galp estimates the impact of several of its low carbon solutions by publishing a yearly estimate of the emissions avoided by their implementation. This estimate is calculated based on a reference scenario where these solutions and products would not have been implemented during the year they were sold or executed. The company takes into consideration emissions avoided through the integration and sales of biofuels for transportation purposes, the delivery of electricity for electric mobility, the production and sale of renewable electricity and the supply of decentralised energy production and energy efficiency services.