Galp Energia SA CDP Climate Change Questionnaire 2023 26 de July de 2023

Welcome to your CDP Climate Change

Questionnaire 2023

C0. Introduction

C0.1

(C0.1) Give a general description and introduction to your organization.

Galp is an integrated energy operator with activities that span from exploration and production of oil and natural gas to refining and marketing of oil products and biofuels, distribution and supply of natural gas and generation and marketing of electricity. To guarantee success, and thrive through the energy transition, Galp has updated its purpose to 'Let's regenerate the future together'. To fulfil this purpose, Galp will regenerate its portfolio, its relationships but also its people. Overall, this will set a direction for the company, internally and externally, towards a low carbon future.

All these changes will translate into our portfolio and operations. Between 2023-2025, we intend to allocate 70% of our net capital to low and zero carbon products and services. By 2030, we aim to have a more electrified, diversified and decarbonized global portfolio, offering a combination of long-term growth and value opportunities in the energy sector.

Our mission is to create value for all our stakeholders (customers, employees, shareholders, suppliers and business partners), acting in energy markets with ambition, innovation and competitiveness, promoting respect for the principles of ethics and sustainability. Our activities are strongly expanding worldwide, being predominantly located in Portugal, Spain, Brazil and Africa. The activity of our Company is also based on 4 key business pillars: Upstream, Commercial, Industrial & Midstream and Renewables & New Businesses.

The Upstream business comprises a portfolio of c.20 projects in different phases, such as exploration, development and production in 4 countries (Brazil, Angola, Mozambique and Namibia). Galp's portfolio comprises a selection of projects located in the world class pre-salt Santos basin, high potential natural gas projects in the Rovuma basin in Mozambique, and promising exploration assets in São Tomé and Príncipe and Namibia.

The Industrial & Midstream business unit, which includes Refining & Midstream, incorporates the refining, co-generation, biofuels and logistics business, as well as the Group's oil, gas and power supply and trading activities. Galp operates an integrated refining system comprising Sines refinery in Portugal (the Matosinhos Refinery closed in 2021) with a total processing capacity of 226 kbpd, and 88 mmboe of raw materials processed. In 2022 this business units also sold c. 0.6 TWh of electricity from cogeneration,handled 54.6 TWh of NG/LNG in sales and trading,and 15.8 mton of oil products supply.

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Galp Energia SA CDP Climate Change Questionnaire 2023 26 de July de 2023

The Commercial pillar integrates a distribution network including approximately 1475 service stations. Refined products are primarily marketed in the Iberian Peninsula, but also in Africa, with total sales to direct clients of 7.4 mton and 4.1 TWh of electricity in 2022. The Commercial business unit is leading the transition into low carbon fuels and mobility, providing Galp customers with diversified solutions, including a network of >2.4 k charging points in Iberia and targeting >10 k charging points by 2025, while simultaneously offering low carbon fuels for aviation and maritime transport. Through Galp Solar, the Company has been helping customers increase their energy efficiency and save on power consumption by providing them with decentralised electricity equipments. It reached >25K decentralised solar energy installations in Iberia during 2022 and is targeting >300 MW installed capacity by end 2025. With c.70% of its planned investments up to 2025 to be allocated to projects that promote the energy transition, Galp aspires to anticipate new trends, adapt its portfolio to future needs and promote a progressive reduction of its carbon intensity, while maintaining a track record of value creation. The Renewables and New businesses unit represents a clear step for Galp to embrace the energy transition by developing a sustainable and diversified portfolio of renewable power generation and is focused on developing a sustainable and diversified portfolio of renewable energy generation, currently focused on Iberia and Brazil, which can be leveraged by synergies with the company's remaining energy businesses.

In 2022, Galp added c.400 MW, totalling c.1.4 GW of installed capacity under operation out of a portfolio of c.9 GW, of which 4 GW are expected to be operational by 2025. We are targeting a gross renewable operating capacity of c.12 GW by 2030. We are evaluating the development of green hydrogen solutions, leveraging our privileged position and industrial skills, targeting up to 700 MW electrolyser capacity by 2030. Additionally, we are also assessing entry opportunities in the battery value chain, namely in lithium processing, having announced the development of Europe's largest and most sustainable lithium conversion plant to be built in Portugal, with an annual production capacity of up to 35 kton of lithium hydroxide and a start of commercial operations in 2026, in a joint venture with Northvolt.

C0.2

(C0.2) State the start and end date of the year for which you are reporting data and indicate whether you will be providing emissions data for past reporting years.

Reporting year

Start date

janeiro 1, 2022

End date

dezembro 31, 2022

Indicate if you are providing emissions data for past reporting years

Yes

Select the number of past reporting years you will be providing Scope 1 emissions data for

3 years

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Galp Energia SA CDP Climate Change Questionnaire 2023 26 de July de 2023

Select the number of past reporting years you will be providing Scope 2 emissions data for

3 years

Select the number of past reporting years you will be providing Scope 3 emissions data for

3 years

C0.3

(C0.3) Select the countries/areas in which you operate.

Brazil

Cabo Verde

Eswatini

Guinea-Bissau

Mozambique

Namibia

Portugal

Sao Tome and Principe

Spain

C0.4

(C0.4) Select the currency used for all financial information disclosed throughout your response.

EUR

C0.5

(C0.5) Select the option that describes the reporting boundary for which climate- related impacts on your business are being reported. Note that this option should align with your chosen approach for consolidating your GHG inventory.

Other, please specify

Galp is reporting emissions and energy data from the operations it controls, plus the equivalent data from participated Upstream projects where it has an equity stake. This is meant to increase transparency regarding our environmental performance.

C-OG0.7

(C-OG0.7) Which part of the oil and gas value chain and other areas does your organization operate in?

Row 1

Oil and gas value chain

Upstream

Midstream

Downstream

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Galp Energia SA CDP Climate Change Questionnaire 2023 26 de July de 2023

Other divisions

Biofuels

Grid electricity supply from gas

Grid electricity supply from renewables

C0.8

(C0.8) Does your organization have an ISIN code or another unique identifier (e.g., Ticker, CUSIP, etc.)?

Indicate whether you are able to provide a unique identifier for

Provide your unique

your organization

identifier

Yes, an ISIN code

PTGAL0AM0009

Yes, a SEDOL code

B1FW751

Yes, a Ticker symbol

GALP PL

Yes, a Ticker symbol

GALP.LS

C1. Governance

C1.1

(C1.1) Is there board-level oversight of climate-related issues within your organization?

Yes

C1.1a

(C1.1a) Identify the position(s) (do not include any names) of the individual(s) on the board with responsibility for climate-related issues.

Position of

Responsibilities for climate-related issues

individual or

committee

Board-level

At Galp, the integration of climate and energy transition related risks and

committee

opportunities - over the short, medium and long-term - in the Company's strategic

formulation process and investment planning represents a key factor towards a

rigorous oversight needed to execute an ambitious energy transition strategy. The

Company recognises the importance of responsible leadership and of the definition

of robust and effective governance mechanisms that integrate key climate and

energy transition related challenges into our strategy.Due to the importance and

potential impact of climate-related risks and opportunities in Galp's operations,

revenues and the materiality of these topics for society, investors and other

stakeholders, they are overseen by the Board of Directors (BoD) and the Executive

Committee (ExCom), where the CEO is the designated member responsible for

climate strategy. The BoD and the ExCom play a central role in overseeing the

investment proposals, to ensure that they are compatible with the decarbonization

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Galp Energia SA CDP Climate Change Questionnaire 2023 26 de July de 2023

and energy transition strategy, measured based on their impact on the carbon

metrics and targets. The BoD annually approves the 10-year business plan that

materializes the Company's energy transition strategy, its short- and long-term

incentives, and the risk appetite statements for the main risks that the Company

faces in the execution of its strategy. In Addition, the BoD regularly reviews Galp's

risk portfolio and oversees the Company's consolidated performance, which

includes climate-related disclosures, and progress on climate-related targets, as

reported in the Integrated Management Report approved by the BoD. The

Sustainability Committee, supported by the Risk Management (RM) Committee, is

the board-level committee responsible for climate-related topics, being key in

assisting the Board in integrating sustainability principles into the decision-making

process and ensuring that the main risks and opportunities (including climate-

related topics) that we face are identified and continually managed. The Chairman

of the Sustainability Committee was also the vice-Chairman and the Lead

Independent Director of the Board, and a member of the Risk Management

Committee. The BoD and the Sustainability Committee, RM Committee,

Remuneration Committee and Audit Board have oversight on climate-related

issues, including associated risks and opportunities, which are relevant to the

delivery of long-term value in the context of the energy transition.

Chief Executive

The CEO is a member of Board of Directors and Executive Committee and the

Officer (CEO)

designated member responsible for climate strategy. The Board of Directors (BoD)

oversees the Company's strategic formulation process and investment planning,

along with the Executive Committee (EC). Energy transition and decarbonization

are priority matters managed directly by the Executive Committee. It is the

Executive Committee that proposes to the Board of Directors the company's

strategy, including its climate strategy, objectives and targets and oversees the

implementation of that strategy, monitoring the performance of carbon metrics and

the fulfilment of the climate targets. Business and annual investment plans are also

overseen by the Executive Committee in order to ensure the alignment with the

energy transition and climate targets.

Board-level

The Risk Management Committee, comprising 3 non-executive Board members, is

committee

responsible for advising the Board on the oversight and monitoring of Galp's main

risks, including climate-related risks; evaluating the compliance with risk tolerance

levels and the implementation and effectiveness of decided mitigation actions;

assessing Galp Group's internal control and risk management systems; issuing

appropriate opinions and recommendations; and evaluating compliance with

Galp's risk management policy. It collaborates with the Sustainability Committee in

identifying and quantifying climate-related risks.

Chief Risk

The Chief Risk Officer (CRO), a member of the Board of Directos and the

Officer (CRO)

Executive Committee, ensures, among others, that risk appetite, including climate-

related risks, is considered in decision-making, oversees and guides the risk

assessment processes and the definition and implementation of response actions

across the organisation; and ensures that the risk management guidelines defined

by the Executive Committee are complied with and reflected in the internal risk

management standards.

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Disclaimer

Galp Energia SGPS SA published this content on 22 September 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 September 2023 14:01:06 UTC.