Embed sustainability in our culture

While promoting a value-adding, conscious business, we need to bring the sustainability lens to our investment analysis and decision-making process and embed it in our culture. This requires continuous engagement with stakeholders and active social dialogue to ensure diverse perspectives inform our actions. Through regular materiality assessments, we identify the environmental, social, and governance topics most relevant to our business and stakeholders, enabling us to focus on what truly matters.

Shared accountability for success

Sustainability oversight and management

Galp integrates sustainability-related risks and opportunities – over the short, medium and long term - into the Company’s strategic formulation process and investment planning. These responsibilities, overseen by the Board of Directors, are managed at Board level by the Sustainability Committee, supported by the Risk Management Committee.

Both committees play a key role in supporting the Board of Directors, ensuring that the Company continuously identifies and manages the principal risks and opportunities it faces, while sustainability principles are integrated into its decision-making process. The CFO oversees the Corporate Sustainability and Risk Management teams.

Galp Corporate Sustainability team is responsible for the corporate management of sustainability risks and for establishing and proposing assessment and monitoring methodologies. These are implemented with all relevant corporate and business units, including the Corporate Risk Management team, ensuring that an action plan is established to minimise and mitigate these risks.

The Board of Directors holds ultimate accountability for implementing sustainability-related policies, ensuring that they align with Galp's commitment to responsible business practices.

Learn more about Sustainability Committee Regulations.

Sustainability incentives

Galp’s commitment to sustainability is reflected through its performance evaluation framework, which is anchored in ESG criteria. These criteria are directly linked to the annual variable remuneration, which applies to both employees and the Executive Committee. ESG metrics account for 25% of total remuneration for employees, and 25% of the quantitative performance-based remuneration component (65%) for the Executive Committee. This proportion can increase further based on the achievement of strategic objectives.

Long-term incentives

To ensure alignment with Galp's long-term goals and sustainability objectives, the members of the Executive Committee have a specific long-term incentive in the form of Galp shares, vested after four years. The number of shares effectively attributed is based on three categories, including the reduction of the sales carbon intensity.

The Remuneration Policy is reviewed annually and made publicly available.

Objective Key Results (OKR)

The implemented Objective Key Results (OKR) methodology, used across the organisation, includes executing the annual Sustainability Roadmap. These objectives guide the teams through the year and address a range of challenges, including decarbonisation, preserving nature, improving safety and employee engagement.

Integrated Management System

Our Integrated Management System includes the following components: external ISO 9001 and ISO 14001 certification, ISO 50001 at the Sines Refinery, EN 12591:2009 (CE marking) at the Viana do Castelo Park. In addition, Galp has several certifications, applicable according to the defined scope.

At Galp, the environment, quality, and energy audits continue to be extremely relevant management tools in controlling risk and the impact of our activity. We have an internal and external team of qualified auditors. To carry out external audits we use independent and qualified entities.

Encourage social dialogue and stakeholder engagement

Galp aims to foster closer connections and relationships with customers, suppliers, partners, communities, governments, academia and other relevant stakeholders. Their insights present opportunities for mutual value creation that will benefit both the company and society.

Our stakeholders

We cultivate long-term partnerships with the countries and communities where we operate, to create value and mutual trust. Our key stakeholders can be grouped in four main groups with different purposes of engagement.

Engagement with Employees

Engagement with employees is essential to fostering a motivated, committed, and productive workforce that contributes to organizational success, while also ensuring a safe and healthy workplace that respects human rights.  

Engagement takes place through key dialogue channels, including Town Hall events open to all employees across all geographies. These events cover topics such as the current context, future challenges, business evolution, the new governance structure and the need for business continuity. Additionally, we conduct employee engagement surveys and individual feedback sessions, and an online employee clarification platform is available to all.

Engagement with Clients 

Engaging with clients is essential to building strong relationships, understanding their needs, and delivering value to enhance satisfaction and foster long-term loyalty. We actively involve customers and consumers—who are crucial to our company’s growth and longevity—through key dialogue channels such as customer satisfaction and experience surveys and call centers. By listening, understanding, and addressing their interests, needs, and expectations, we uphold principles of ethics, conduct, and transparency. 

Engagement with Investors 

Engaging with investors is essential to promoting trust and maintaining transparent communication, ensuring compliance while keeping stakeholders informed about the company's performance and strategic direction. By strengthening partnerships that support Galp’s financial strategy and project execution, we build long-term collaboration. 

We maintain open dialogue through key channels, including regular engagement with investors and analysts, periodic market updates, quarterly results presentations and conference calls. Additionally in 2024 we collaborated with associations such as WBCSD, BCSD Portugal and UN Global Compact. These interactions provided valuable opportunities to exchange knowledge, participate in discussions, and influence important issues.  

Engagement with Society 

Engaging with society is essential to securing our license to operate, fostering community development, and making a positive impact. We build strong partnerships with suppliers and business partners to ensure reliable value chains and mutual growth while collaborating on industry goals, anticipating trends, and supporting relevant policies and regulations. 

We also drive innovation through collaborative research and by leveraging diverse expertise. Our key dialogue channels include membership and participation in sector and technical association meetings, partnerships with NGOs, academic institutions, and research centers, as well as collaborative meetings with business partners. Additionally, we maintain quality and encourage continuous improvement through supplier audits, tender processes, and satisfaction surveys. 

Double materiality assessment

In 2024, we completed our first Double Materiality Assessment, aligned with the new requirements of the EU Corporate Sustainability Reporting Directive (CSRD).

This process enabled us to identify and prioritise the sustainability topics most critical to our business by incorporating the perspectives of our stakeholders. The assessment identified topics with both impact and financial materiality, which have been embedded in our Sustainability Roadmap and for which Galp has established clear goals and targets. Progress on these commitments is regularly monitored and publicly disclosed. Further details can be found at the beginning of each chapter in Part I (Sustainability Statement) of the Annual Report.