452019 ANNUAL AND CORPORATE RESPONSIBILITY REPORT

Also, in 2019 we included Climate Change and Energy Transition among our main risks, carrying out an analysis and a first specific map of climate change risks under TCFD standards. In addition, a methodology has been developed and implemented to calculate profitability in a quantitative and comparable way ad- justed to the risk of the main investment projects, standardising and integrating the analysis of risks and opportunities carried out in the calculation of the pro- fitability of projects.

At Cepsa we have developed differential capabilities that support the resilience of our business model and provide the foun- dation for future growth.

One of our priorities is to manage the risks identified while seeking the possi- ble opportunities associated with them, allowing us to develop competitive ad- vantages that generate value, focus our objectives and develop our strategy to continue to be a major player within the energy industry:

Continue backing Research and Deve- lopment, which enables us to contri- bute to the continuous improvement

of our operations and the development of new ideas and projects, such as me- thods for recovering crude oil in mature production fields, obtaining a higher additional volume, or the development of a new marine fuel that meets the strictest regulatory requirements.

Make headway in the development of solutions to improve efficiency in the use of resources and the circular economy, such as waste recovery, for example used cooking oil (UCO), to be employed as raw materials in our pro- cesses.

Carry on the process of digitalising our Company to achieve greater energy, production and logistical efficiency, as well as to continue working on the development of low emission sustain- able mobility plans.

Diversify our portfolio of activities in the transition towards a more sustain- able model, expanding our presence in the renewable energy sector.

"One of our priorities is to manage identified risks, while at the same time looking at the potential opportunities they may present."