CHAPTER 6 Additional content

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RISKS DESCRIPTION AND CONTROL MEASURES

Water management

For Cepsa, sustainability is an essential corporate value and the company works to minimise the impact of its activities. This sustainability pledge has led to water recovery and collection projects, and initiatives to use it in a more rational way. The company closely monitors the quantity and quality of water required for our production activities.

Talent and culture management

The challenges of the energy transition and digital transformation require a new business culture with more participative processes and, above all, a new form of leadership, new talent management and new profiles that we need to identify and develop. In the aftermath of the pandemic, working models have been affected, including the coexistence of face-to-face and remote working models involving new practices that are not always successfully implemented in companies and, at times, personal and business interests are misaligned. Cepsa, as a company immersed in the energy industry's transition challenge, could be particularly impacted if the company's culture is not aligned or synchronised with this transition. Cepsa is developing a transformation programme based on effective communication and active, inclusive leadership, allowing for the parallel evolution of our organisation s culture and strategic transformation.

Project execution

The non-availability of sufficient resources and other factors such as delays, expiry of licences, possible cost overruns and changes in technical, fiscal, regulatory and political conditions could affect project implementation. The company manages this risk by means of thorough planning and permanent control of costs and deadlines.

Supplies

Shortages in the global supply chain and in cargo ships and containers are causing tensions in the raw material and component markets that could lead to a lack of availability of products or higher prices. The identification of critical supplies and spare parts, fluid communication with existing suppliers to assure supplies and contracts that limit delivery risk and international transport prices are some of the actions taken by Cepsa to minimise risk.