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972019 ANNUAL AND CORPORATE RESPONSIBILITY REPORT

The risk of energy transition and climate change, together with the objectives set for climate neutrality, have meant that at Cepsa we envisage the incorporation of emission reduction technologies, as well as the manufacture of new raw ma- terials and end products with the aim of offering society the sustainable energy it demands.

Based on this idea, at Cepsa we develop products and services with lower carbon intensity, both in their direct use and in their life cycle. From the continuous de- velopment of additives in our fuels in or- der to reduce energy consumption by the various means of transport to increasing our EPD (Environmental Product Decla- ration) certifications, which allow us to better understand the impact on their production and encourage their reduction.

In this regard, in 2019 we reached milestones such as the following:

We have installed the first solar panels in our service stations, allowing us to generate our own energy sustainably.

We made headway in the calculation of the carbon footprint of energy

products in order to better cover the information needs of our customers, while improving our knowledge of the impact of our production.

We achieved sustainable certification under ISCC standards of a spot sale of sustainable phenol, produced using benzene from forestry waste.

We completed the construction of Cepsa's first wind farm, which repre- sents a reduction of 32,000 tonnes of CO2 compared to conventional electricity generation.

We entered into an agreement with MASDAR, Abu Dhabi's Future Energy Company, for the generation of 500 megawatts of renewable energy over the coming five years.

We made inroads into the field of alternative mobility with a pilot project together with IONITY, the European high performance charging network promoted by the BMW Group, Daimler AG, Ford Motor Company, Volkswagen Group, including Audi and Porsche; for the installation of up to 100 ultra-fast chargers for electric vehicles at our service stations.

The improvements in 2019 most notably include:

In the Refining area, initiatives were implemented to change fuel oil to fuel gas in one of its direct distillation units, as well as improvements to the crude oil unit and heat exchangers. Projects were also carried out to optimise steam generation and consumption and air compression.

At the chemical plants, improvements were focused on the implementation of digitalisation projects that have helped develop a more efficient use of the energy required for their activity, as well as the renewal of operations equipment to reduce energy consump- tion.

EFFICIENCY

TRANSFORMATION AND LOW-CARBON PRODUCTS

We work to continue reducing the intensity of energy consumption as we carry on our activities and, therefore, we have launched new projects aimed at improving our energy efficiency in the areas where we are present.

All our production centres in Spain for refining and chemicals, as well as the gas and electricity facilities integra- ted in these complexes have an energy management system certified under the ISO 50001 international standard, which helps us detect and implement improve- ments and preventive and corrective measures to reduce energy consumption and, therefore, greenhouse gas emissions.