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CHAPTER 4 Responsible management

At Cepsa we certify annually, under the ISO 14064 standard, our carbon footprint, including the emissions of the activities carried on in Spain and the assets opera- ted in exploration and production, BMS assets in Algeria, Casanare in Colombia and Peru. In 2019 certification was exten- ded to include the Caracara (Colombia) asset, thus meeting our annual objective of progressively increasing the scope of certified activities.

Within our plan for the development of the short-term strategy for the period 2019-2023 (PP5), our energy efficiency actions have been translated in emi- ssions, which are being integrated in our Long Term Strategy, in order to reflect it

on a 2050 ambition. And all of this within the framework of the Oil&Gas sector, which has the potential to provide low- carbon energy from production to use, complying with climate neutrality in a 2050 scenario.

In addition, we have a global index that represents the Carbon Intensity of our operations. It should be noted that in 2019 we already achieved an improvement of 9% in this rating with respect to the figures for 2005, which meant the avoidance of 1 million tonnes of CO2 emissions, 17% of the emissions generated by Cepsa's activities, taking into account the global scope of operations and referen- cing it to the scope of activity in 2018.

METRICS AND OBJECTIVES

CEPSA'S 2019 CARBON FOOTPRINT

CO2 emissions by scope (Thousands of tonnes of CO2 eq)

1The scope includes only the assets subject to operational control, with working interests reported fully as per IOGP Reporting criteria, based on the scope, and 2017 and 2018 emissions were recalculated. The methodology for calculating GHG emissions in Exploration & Production was changed in 2019 to that developed by IOGP. 2017 and 2018 were not recalculated. 2The scope includes Spanish and international chemical plants, except for the Sinarmas plants. The emissions for 2017 and 2018 were recalculated in this connection. 3 Distribution, Cepsa Comercial Petróleo, Petrocan, Aviation, SIS and CMD data are not reported as they are no significant (0.1% of total emissions).

Scope 1 5,962

Scope 2 634

Scope 3 71,354

GHG emissions (Scopes 1 and 2) by business (Thousands of tonnes of CO2 eq)

2019 2018 2017

Scope 1 Scope 2 Scope 1 Scope 2 Scope 1 Scope 2

Exploration & Production1 422 47 695 83 525 80

Refining 2,973 498 3,251 526 3,282 503

Chemicals2 698 89 716 172 714 175

G&P 1,869 0 1,266 0 1,420 0

Total3 5,962 634 5,928 781 5,941 758

Total scopes 1+2 6,596 6,709 6,699