932019 ANNUAL AND CORPORATE RESPONSIBILITY REPORT

4.5 ENVIRONMENTAL MANAGEMENT

"Cepsa's energy model is focused on flexibility and innovation, and takes into account the different forms of energy and different technologies that are available."

Cepsa acknowledges the major cha- llenge posed by climate change and the role that all types of energy must play in the transition towards a low-carbon economy. Following the Paris Agreement in November 2015, most countries joined together to provide a global response to this challenge and set the stage for a low-carbon economy and climate neu- trality. In short, greenhouse gas emi- ssions must be reduced and the energy and consumption model must change.

In its CEO Energy Outlook 2030 , Cepsa set its energy model to 2030. An inno- vative and flexible approach that takes into account the various forms of energy and the different technologies available. This was a starting point for the design of Cepsa's climate change strategy.

To this end, we monitor regulatory and consumer trends and changes, accepting the challenge of this transition and con- tributing in the most effective way possi- ble, both through our support to industry associations in terms of regulation, and at the Company itself, through our stra- tegy and the reduction of emissions from our activities.

We evaluate and publish our performance in the area of climate change manage- ment through our participation in the CDP (Carbon Disclosure Project) - Cli- mate Change, an extensive questionnaire that evaluates the management carried out by companies; which also makes it an important benchmarking tool in the oil and gas sector. In 2019 we improved our benchmarking, obtaining a B rating.

CLIMATE CHANGE