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Cepsa s social management approach especially in Exploration and Production operations aims to nurture ties with lo- cal communities lying within the spheres of influence of our operations by mini- mizing the risks for their populations and lands and maximizing the positive im- pacts that could derive from our projects. One of the formulae to achieve this is to open up as many opportunities for local content (both workers and products and services) as possible for the communities within the areas of influence of our oper- ations. We ensure local communities are involved in our operations through these strategies, which aim to encourage and give priority to hiring workers and pur- chasing products and services from the local area.

As established in the Local Community Relations Policy, Cepsa s units responsi- ble for operations analyse and evaluate the impacts the company could have and the risks it assumes in its projects and ac- tivities in a specific social context with a view to:

Identifying any potential adverse effects early during project planning.

Factoring social and environmental aspects of the local community into the project planning process along with financial and technical factors to be able to determine not only any immediate impacts or risks but also those in the medium to long term.

Implementing preventive mitigation measures to eliminate or at least reduce any impacts or risks.

In 2017, we started preparing social risk maps following a new approach in ac- cordance with our Local Community Re- lations Policy within the framework of

the Integrated Risk Management Sys- tem. As established in the Corporate Re- sponsibility Master Plan, this analysis was completed for the assets in Ucayali (Peru) and Casanare (Colombia) in 2018. We will use the initial analysis to optimize how resources are assigned, prioritize so- cial measures based on the level of risk, and reinforce the risk management cul- ture among teams.

We have a specific relations policy for indigenous communities, which offers an overarching framework of action for building relationships with these com- munities. Different commitment strate- gies are drawn depending on the area in which these communities are located. In the case of those not in the area of direct influence of the Exploration and Produc- tion fields, such as the indigenous com- munities of Wacoyo and El Tigre in Co- lombia, the communities benefit from community support projects aimed at en- hancing families quality of life, protect- ing their culture and traditions, and im- proving their diets, all within a strategy of permanent communication and coordina- tion based on building mutual trust.

In Peru, the native Sinchi Roca commu- nity, which is also in the area of indirect influence of the fields, is involved in the social investment initiatives that are run periodically, such as schooling and health campaigns and campaigns connect- ed with Christmas. Lastly, in the case of communities in the area of direct influ- ence of the project, such as the indige- nous Unuma community in Colombia, re- lations are founded on the agreements reached through prior consultations with these people in connection with the drill- ing of these wells, as well as practices that ensure the company is a good neigh- bour to this community.

Identification of impacts and opportunities





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