Shared accountability for success
An effective management and an integrated approach to sustainable value creation requires having committed leadership, a clear strategy, and a robust and strong governance.
For Galp, these factors are considered fundamental to being a more resilient company, better prepared to respond to current and future challenges. Galp's governance model is based on a decision-making culture that includes the assessment of risks and opportunities, which covers the entire life cycle of its operations – from the identification of the business opportunity to the decommissioning.
The Sustainability Committee was created by the Board of Directors on the meeting held on 12 April 2019.
The mission of the Sustainability Committee is to assist the Board of Directors in integrating sustainability principles into the Galp Group management process, promoting industry best practices in all of its activities, with a view to long-term value creation.
The Committee meets at least four times per year, on dates to be set at the beginning of each year, or, extraordinarily, at the request of the Chair or at least two of its members.
In 2022, the Sustainability Committee met 4 times, plus two extra informal meetings during June and July.
Learn more about Sustainability Committee Regulations.
The company’s commitment with decarbonisation and with driving the energy transition is reflected by its performance evaluation ESG indicators, linked to variable remuneration and applicable to all employees in all geographies.
From 2022 onwards, hydrocarbon production related metrics are no longer featured as weighting factors in employees’ incentives. The performance scorecard was reviewed in 2022 to give more empowerment to ESG related metrics, that now weight 25% of all annual performance indicators, covering safety and decarbonisation KPIs. In addition, 20% of the employees’ scorecard is allocated to the completion of strategic milestones that include, among others, topics related to cybersecurity and low carbon projects like electrification and H2.
For the Executive Committee, safety and decarbonisation KPIs are also included in the short-term incentive scorecard, with a combined weight of 15%. The remuneration policy of members of the Galp's corporate bodies is reviewed annually and made publicly available (link here).
Objective Key Results (OKR)
OKR methodology has recently been implemented in all business units with the aim to engage the wider organisation in delivering Galp’s strategic milestones. By leveraging visibility on what matters, teams worked with high focus and recognized their efforts in Galp’s results. Some of the sustainability related OKRs present in the business units’ scorecards are related with safety, decarbonisation projects and carbon offsets strategy, increase renewables capacity and production, among others.
Audits and compliance
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, according to strict criteria, for ISO 14001, ISO 9001, ISO 50001, and ISO/IEC 17025 standards. To carry out external audits we use independent and qualified entities.
Certifications and accreditations
Product quality assurance is key for oil companies in meeting the expectations and requirements of their clients.
The existence of strict internal specifications subject to a careful control process ensures that, throughout the logistic chain, product characteristics are kept within the limits applicable in each geographical area.
Our commitment to market products that meet or exceed applicable legal or contractual requirements, and to ensure efficient use of resources by investing in innovative technologies and in the best available operating techniques, poses challenges with regard to efficiency and effectiveness.
These can only be met by sharing knowledge in scientific, technical, economic and legislative areas, which have an impact on product quality. We maintain therefore, a set of important links with several organizations that lead in the development of product quality and we position ourselves as a company of excellence in the markets where we operate. In this way, it is possible to anticipate risks arising from changes in specifications and to ensure the effectiveness of our product quality assurance process.
We also monitor the regulatory review of product quality and numerous studies that are currently taking place on this subject as a result of technical and economic issues.
- CONCAWE - Fuel Quality and Emissions Management Group
As part of our participation in CONCAWE - Fuel Quality and Emissions Management Group and its working groups, we maintain a set of important links with various organizations that lead in the development of fuel quality.
At Galp, we have been monitoring the work carried out, either through participation in CONCAWE or through participation in the Technical Commission - CT38, within the framework of the Portuguese Quality System, in order to be ready at all times to supply the most evolved fuels.
- ADH - Marine Fuels and ADH - Aviation Fuels
In the field of marine fuels, we are participating in the ADH groups - Marine Fuels, and in the case of aviation fuels, we participate in the ADH group - Aviation Fuels, through Galp Energia.
The creation of these groups establishes and consolidates links with organizations such as the IPIECA (International Petroleum Industry Environmental Conservation Association), ISO (International Standards Organization) - ISO/TC28/SC4/WG6 and IMO (International Maritime Organization) in the case of marine fuels, and with the Joint Inspection Group (JIG) and the AFC (Aviation Fuel Committee of the Energy Institute) in the case of aviation fuels.
The work groups cover several areas of fuel quality and enable interaction with other companies operating in the market. As a result, at Galp we have positioned ourselves in an advantageous position that enables us to anticipate risks and consolidate strategic scenarios.
In the case of bitumens, we have been monitoring regulatory developments through participation in the CT153 Technical Committee in Portugal. The work carried out by this committee with a view to publishing the national annex to the standard EN12591 that establishes the specifications for pavement bitumen is notable.
Integrated Management System
In 2022, Galp approved SIG 2.0, a revamped Integrated Management System that aims for Galp to have a more simplified management system, more focused, agile and with added value for the organisation. In SIG 2.0, we maintained the ISO 9001 and ISO 14001 certifications in the majority of our assets (according to the scope defined in the 1993/CEP.096 and 2018/AMB.0896 certificates, respectively), the ISO 50001 in the Sines Refinery as well as SEVESO and EN 12591:2009 (CE marking) certifications in the applicable sites. Galp has its laboratories accredited in accordance with ISO/IEC 17025 and has an integrated management system certified in accordance with ISO 9001 and 14001 by APCER.
100% of our operations are covered by the HSE operational management system.
The integration of previous management systems led to a simplification of the systems management, despite the expansion of the number of facilities and activities covered.
For further details, download the 2021 detailed list of Galp’s certifications.
See also our performance - reporting.