Shared accountability for success
Management commitment
Effective sustainable value creation requires a committed leadership, a clear strategy, and robust governance. In line with this, Galp fosters engagement of the Board of Directors through its Sustainability Committee. In 2023, this Committee covered key topics such as the sustainability roadmap, decarbonisation, climate and nature risks and opportunities, the ESG regulatory context and disclosures, ESG indices and external engagements, among others.
The ESG Corporate Forum was created in November 2023, gathering top managers from different departments to leverage strategic empowerment of the group and ensure its preparedness to address and unlock potential risks and opportunities.
Learn more about Sustainability Committee Regulations.
Sustainability incentives
We have established remuneration policies which aim to ensure the remuneration is aligned with longer-term strategic ambitions including ESG factors. This is related to variable remuneration elements and is applicable to all employees.
Employees
The 2023 scorecard continued to emphasise Sustainability-related metrics, namely safety and decarbonisation, which represented a total of 25% of the weight of all annual performance indicators. In addition, 35% of the employee scorecard was allocated to achieving strategic milestones including, among others, topics related to the renewable energy portfolio, cybersecurity and the engagement level of employees.
Executive Committee
The Remuneration policy for corporate bodies was reviewed, with an increase of weight allocated to sustainability-related metrics. The new scorecard includes a total weighting of 25% of annual performance indicators linked to safety and decarbonisation, consistent with those applicable to all employees. Additionally, to fully align with Galp's long-term goals and sustainability objectives, the executive directors have a specific long-term incentive in the form of Galp shares, vested after four years. The Remuneration Policy is reviewed annually and made publicly available.
Objective Key Results (OKR)
The OKR methodology, implemented in Galp in 2022, provides a clear framework for aligning teams, setting ambitious goals, and measuring progress in a transparent and results-driven manner. The list of OKRs includes several sustainability related OKRs for safety, decarbonisation, renewables, cybersecurity, employee engagement, 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
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.
Technical participation
- 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
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 and SEVESO in the applicable sites. In addition, our internal Health, Safety, and Security integrated system incorporates four core processes: change management, work authorization, emergency preparedness, and accident investigation. The new Lisbon headquarters has initiated the process to obtain LEED and WELL Platinum certifications, clearly indicating that it prioritises having a sustainable building that considers efficient emissions, water, and circular economy practices, as well as human health and wellbeing.