Protect biodiversity

As outlined in the 2024 Global Risks Report by the World Economic Forum (WEF), the most severe risks expected to emerge in the next decade are associated with climate and nature. Efforts are being made to tackle this crisis through strategies and collaborations between the global community and market forces, particularly those focused on nature.

The 2022 Conference of the Parties for the Convention on Biological Diversity (COP15, held in Montreal, Canada) led to the Montreal-Kunming agreement. It sets ambitious goals to stop and reverse biodiversity loss by 2030, including reforming harmful subsidy systems and restoring 30% of the planet's degraded ecosystems.  

Adding to this and considering other frameworks, such as the Task Force on Nature related Financial Disclosures (TNFD), and emerging trends like Science-Based Targets for Nature (SBTN), Galp aims to support and contribute to nature conservation.

Galp has established a robust Environmental Management System applicable to Galp's operations and activities, in accordance with ISO 14001 guidelines. This framework, which has been in place for over 10 years and undergoes continuous improvement, ensures compliance with legislation and other relevant requirements, proficiently manages environmental risks, and fosters continuous performance improvement across the life cycle of our activities, products, and services. Moreover, our environmental management system will progressively align with CSRD guidelines. This includes the assessment and action on risks and opportunities, as well as the tracking of performance through environmental metrics such as energy consumption, waste management, water usage, and biodiversity.

To achieve our ambition, Galp is focused on the following drivers:

• Commit to include biodiversity related criteria in the decision-making
• Embed our sites in the ecosystem
• Collaborate through initiatives and partnerships

Galp’s approach to TNFD

We are already preparing the implementation of the TNFD framework, starting with setting Galp’s governance of nature-related dependencies, impacts, risks, and opportunities and piloting the LEAP (Locate, Evaluate, Assess and Prepare) risk assessment.

Governance on nature-related topics

The Sustainability Committee, our board level committee, has the duty, among others, to assess and supervise the risks and opportunities related to climate and nature, with the support of the Risk Management Committee. The Governance pillar of TNFD will undergo continuous analysis and improvement as needed throughout the framework development process.

LEAP Risk Assessment Pilot Project

This is a comprehensive approach that involves assessing nature-related issues and identifying priority action areas. As we are conscious that dealing with nature dimension is location-specific, our approach is focused on specific assessments and responses. We believe this is a key opportunity to understand, manage, and respond effectively to nature-related risks and opportunities for Galp. We have recently concluded the “Locate” and “Evaluate” phases.

• Project’s Scope: Our analysis of Galp’s portfolio involved a high-level examination of key aspects, such as geographic distribution, activity type, business strategy and nature integrity. This guided our assessment priority, focusing on Galp's specific operations.
• Locate & Evaluate phase: We started by mapping our business footprint and ecosystem types. Next, we assessed Galp's dependencies on ecosystem services and key impact activities, combining sector and company context, the current state of nature and ecoefficiency performance. This process culminated in a material matrix, highlighting priority assets for assessment and actions on associated risks and opportunities.

Commit to include biodiversity related criteria in the decision-making

We aim not to operate/explore/mine/drill inside the boundary of UNESCO’s World Heritage areas and avoid IUCN (International Union for Conservation of Nature) Category I-IV protected areas.

In 2024, we reaffirmed our position on biodiversity with the approval of our Biodiversity Policy.

Galp's Biodiversity Policy

Our Biodiversity Policy is centred around three fundamental principles:

Respect protecting zones

We recognise the value of UNESCO’s World Heritage areas and IUCN protected areas, and we respect their boundaries by not operating or avoid these high biodiversity important areas, respectively.

Identify, assess, and manage existing and new operated sites

We evaluate biodiversity in our operations and value chain, and embed it into our strategy and risk management. Specific action plans for sites near protected areas¹ and strategies for positive biodiversity impact in new projects are integral to our approach. In joint ventures, we promote collective integration by sharing our biodiversity guidelines, so as to foster a shared commitment to their implementation.

Promote collaboration and spread knowledge

We encourage key stakeholders to integrate biodiversity criteria into their business practices. Our efforts extend to fostering biodiversity-focused training and awareness initiatives among relevant partners.

¹ UNESCO’s World Heritage areas and IUCN Category I-IV protected areas.

Preserve and conserve the forest

We have reinforced our aim to achieve zero net deforestation² in new projects as outlined in our Biodiversity Policy. This entails avoiding the removal of forest land whenever possible, and if unavoidable, compensating with future reforestation efforts.

In 2023, Galp started implementing three new photovoltaic projects that avoid deforestation and one requiring compensation measures.

² Galp uses Food and Agriculture Organization of the United Nations (FAAO) definition for forest: “Land spanning more than 0.5 hectares with trees higher than 5 meters and canopy cover of more than 10 percent, or trees able to reach these thresholds in situ”.

Nature-related dependencies & impacts and Biodiversity risk screening

We annually perform a biodiversity risk screening, across all our operated sites. In 2023, we incorporated the identification of potential nature-related material dependencies and impacts associated with our main current business activities to enhance our comprehension and allow a more effective risk evaluation. In addition, we intersected the location of our operated sites with biodiversity relevant areas³ using the IBAT Tool. The number of threatened species in areas surrounding our operations is also monitored according to the IUCN Red List.

Among all our operated sites, none are situated within or adjacent to UNESCO's World Heritage Areas. Regarding IUCN Category I-IV protected areas, 29 sites (6%) are situated in or near (within a 1km radius) of these regions, predominantly service stations in Iberia, where we plan to develop biodiversity action plans.

More detailed information can be consulted in Galp’s Nature Risk Screening 2023.

³ Any area of biodiversity protection or of priority conservation identified in this report, according to the data provided by the IBAT tool (IUCN areas, Key Areas of Biodiversity, Ramsar, Natura 2000 network, and UNESCO World Heritage).

Embed our sites in the ecosystem

Approach to our operations

Our management approach follows the mitigation hierarchy (avoid, minimise, restore and offset). We are planning to develop action plans for sites located in or adjacent to protected areas. At Sines Refinery we are working on a Biodiversity Action Plan, with the support of subject experts. The initial phase involved characterising the regional fauna, flora, vegetation, and habitats. As we progress, the final report is underway and contains detailed conclusions and the corresponding recommendations.

For new projects located in or adjacent to protected areas, Galp is focused on developing a strategy to produce a positive impact on biodiversity. The Company developed a methodology called “Smart Renewable Power Plant” with the assistance of external experts to integrate solar plants into the ecosystem aiming to achieve a positive impact.

In 2023, we started a pilot project in Alcoutim, Portugal to implement the “Smart Renewable Power Plant” methodology. Inaugurated in September and aggregating four PV plants – S. Marcos, Viçosa, Pereiro, and Albercas – the project spans an area of 250 hectares, with a capacity of approximately c.140 MWp.

A Biodiversity Action Plan (BAP) was developed for this site, outlining the measures for a Net Positive Impact. The plan aims to renaturalise a total area of around 73 ha. Initiatives include sheep grazing and shelters for birds and bats. These and other actions promote diversified use of the land and soil regeneration while safeguarding and increasing local biodiversity and enhancing ecosystem services, among other benefits. As this is a pilot project, we expect to obtain key results that will enable us to replicate them for other similar solar facilities

In case of joint ventures, we share Group's biodiversity guidelines to collectively pursue integration of  biodiversity issues.

In non-operated sites, we share with our partners our best practices and respect the commitments established in the joint ventures. The partners who manage the upstream blocks not operated by Galp develop a set of initiatives to promote and preserve biodiversity.

Biodiversity in Upstream projects

In recent years, the Coral FLNG project has played a crucial role in biodiversity protection. Activities include coral cultivation, capacity building for fishermen, provision of laboratory equipment to UniLurio (the local university), and awareness campaigns on biodiversity conservation at the Vamizi Community School.

An environmental characterisation study was also performed in the Namibia PEL83 region, and a final report is expected to be concluded in 2024.

Detailed information related to upstream projects can be consulted in the Biodiversity Management Best Practices Guides and its supplements:

Supplement #1 to the "Good Practice Guide for Biodiversity Management"
Supplement #2 to the "Good Practice Guide for Biodiversity Management"

Collaborate through initiatives and partnerships

Galp participated in several initiatives and collaborations this year, working in partnership with relevant stakeholders:

• Galp continued to be part of TNFD Forum, a multi-disciplinary consultative group who shares the mission and principles of the TNFD and is available to contribute to the work of the Taskforce.
• Galp continued its membership of Fuels Europe and CONCAWE, and actively engages in initiatives, task forces, and working groups within the oil and gas sector (specifically on the refining industry) to address relevant environmental concerns.
• Already a member of BCSD Portugal, Galp joined its Biodiversity working group and contribute to delivering solutions to protect and preserve biodiversity.

Galp joins act4nature initiative

• Galp partnered with the University of Zaragoza (UNIZAR) and the Agrifood Research and Technology Center of Aragón (CITA) to develop a renaturalisation plan for the solar parks in the Aragón region, Spain. Among other benefits, the plan aims to protect and enhance local biodiversity and regenerate soil.

• PRIMILART: Galp developed initiatives to protect the habitat of the cernicalo primilla (in alignment with the European Birds Directive and National protection plan), including the creation of shelters. This initiative goes beyond conservation by fostering a cultural art movement around the primillar, adding value to the community, and promoting biodiversity awareness, traditions, and cultural heritage.

• World Environment Day: On 5^th June, Galp’s teams visited our solar plants in Alcoutim, Aragão, and Minas Gerais (Vereda Plant) to celebrate the day. The event brought together different teams and included activities such as visiting photovoltaic plants and installing equipment to boost biodiversity (e.g. acoustic sensors, insect hotels, and shelters for bats and birds). Action plans for biodiversity and circular economy projects, including recycling plastic and electronic equipment, were presented.

Earth Day