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REPSOL YPF FILE GLOBAL COMPACT LEADERS SUMMIT 24TH JUNE, 2004 UNITED NATIONS HEADQUARTERS – NEW YORK 1.- NAME OF THE COMPANY REPSOL YPF 2.- TITLE OF THE PAPER REPSOL YPF WITH THE GLOBAL COMPACT 3.- PRINCIPLES OF THE GLOBAL COMPACT AND STEPS TO BE TAKEN IN ORDER TO INCLUDE THESE PRINCIPLES INTO THE BUSINESS Human Rights: 1.- Companies should support and protect the human rights internationally proclaimed within their scope of influence and 2.-They should make sure that they are not accomplices to any abuse of human rights. . STEPS TO BE TAKEN 1.-The respect for human rights is something especially relevant for a company as is Repsol YPF, internationally involved in gas and oil activities. Therefore, the company is strongly committed to actively promote and protect human rights in the scope where it pertains. The Universal Declaration of Human Rights dated 1948, the OECD Guidelines on Multinational Enterprises and the Principles of the Global Compact are a reference for the company. The implementation of these principles in Repsol YPF was duly established in 2003 in the terms of its new human rights policy, which title is “Policy of respect for People and their Diversity”, issued upon the request of the Corporate Reputation Committee (CRC), that will be duly informed about its implementation and follow-up on the part of executives and employees. For the first time, the company states in a document, encompassing the corporate scope, its commitment and practices of respect regarding human rights. 2.-In compliance with this policy, Repsol YPF carries out all of its activities with no discrimination whatsoever, either be it on account of race, religious or political beliefs, union affiliations, nationality, language, age, sexual orientation, civil status, disability, economic position, social class or any other consideration. Furthermore, the company understands that human diversity is a source of competitive advantage that affords a good position as regards its peers by integrating people from different backgrounds, thereby encouraging a mutual learning experience. Therefore, human rights and diversity are duly integrated in all of the Repsol YPF activities, scopes and stakeholders. Repsol YPF has begun the implementation of this policy including training programmes and encouraging the participation of the company and its employees in activities supporting human rights in the community. The implementation of all of these principles is stated in the follow-up Guidelines of “Policy of respect for People and their Diversity” in Repsol YPF that has been turned into a reference document for the progressive start-up and follow-up of the human rights policy. Labour Rights : 3.-Companies should support freedom of association as well as effective acknowledgement of collective bargaining. 4.-Elimination of all types of forced labour. 5.- Effective abolition of child labour, and 6.-Elimination of discrimination as regards employment and occupation. STEPS TO BE TAKEN: 3.- Repsol YPF acknowledges the right of the employees to join any given trade union and to collective bargaining. Relations with trade unions as legal representatives of the employees will be the bases for establishing the framework of the relations employees-company. As regards labour relations, it should be pointed out that in 2003, for the first time ever, a Socio-Labour Climate Study was carried out on a global scale as well as developing and issuing an Ethics and Conduct Regulation for the employees. The survey gave as a result that 74 percent of the employees felt proud of being part of Repsol YPF and that 78% of the employees were pleased working for the company. All of Repsol YPF employees are appraised according to their talents within their diversity, complementing actions geared to encourage the balance between personal and working lives. The “Policy of respect for People and their Diversity” is complied with in all the decisions regarding staff management: selection, hiring, training, promotion, expatriation, succession, mobility, etc. 4.-Recruiting, driving and keeping the best professionals, offering an attractive environment to work in. Granting and promoting opportunities for professional development in a first-rate company. The base for developing this professional career will be the objective assessment of professional merits, within the framework of no discrimination, generating the pride of being part of the organization. Repsol YPF’s staff are located in more than 20 countries. Geographically, during 2003, 52 percent of the employees were in Spain, 45 percent in Latin America, 15 percent in other European countries, 0.5 percent in North America, and 0.5 percent in Northern Africa, the Middle East and the Far East. 5.-Either in Repsol YPF as in the other affiliate companies around the world no minors are employed. On the contrary, the company absolutely condemns either this type or any other of human exploitation. Repsol YPF employees have all the benefits granted by law. In 2003, the staff was increased by 1,011 employees. External rotation of the regular staff was 6.8 percent in 2003, whereas in 2002 and 2001 external rotation was respectively, 7.4 percent and 10.3 percent. 6.-Repsol YPF acknowledges the rights of its employees and is committed to no discrimination, to promoting equal opportunities and to value the diversity. Repsol YPF, carries out all of its activities without any type of discrimination, based on sex, religious or political beliefs, trade union affiliations, nationality, or any other consideration. In relations with customers and suppliers: Repsol YPF prohibits any type of discrimination with customers and suppliers and values established collaborations in a scenario ever more multi-cultural and global, promoting human rights in all its spheres of influence. Furthermore, the company uses new technologies in its suppliers selection systems within a framework of loyal and transparent competition. In relations with society and the communities where it operates: Repsol YPF is committed with the society and the communities where it operates – essentially through the economic activity inherent to its business activities – to comply with local laws and to promote the development and defence of human rights. Therefore, Repsol YPF is clearly committed to the non-exploitation of minors; of making the development of energy sources compatible with close and positive relations with the communities involved; of promoting human rights in its sphere of influence and to support local development. The environment: 7.-Companies should support a preventive focus as regards environmental challenges. 8.- Implementing initiatives that promote a greater degree of responsibility 9.-Encouraging the development and diffusion of environment-friendly technologies, non-aggressive to the environment. STEPS TO BE TAKEN 7.-As regards security and the environment, Repsol YPF complies with all of the regulations stated in the Global Compact and it subscribes to the US/UK Voluntary Principles on Security and Human Rights. On he other hand, and within the framework of General Security and Environmental Procedures, Repsol YPF has established its Field Activities and Physical Safety Requirements. These influence both the identification and systematic assessment of risk related to physical safety during the preparatory stages of the activities, as well as implementing measures in order to minimise or reduce such risk during the carrying on of the works. According to Repsol YPF principles, “Activities of physical safety will be carried out within legal requirement, with the most demanding international standards and principles, specially regarding the use of force”. Furthermore, “always to bear in mind, in order to minimise it, the effect that such measures of physical safety might carry with the local communities. For Repsol YPF, the implementation of physical safety is of the outmost importance, either in order to assess its effectiveness as well as in order to comply with the law and the respect for human rights”. On the other hand, the protection and conservation of the environment and the biodiversity is a key element in shaping the strategic horizon for the company, inspired by the principles of sustainable development. The company takes on the respect for the biodiversity when planning and developing its projects and operations, avoiding any possible impacts on the ecosystems. 8.- Repsol YPF has incorporated during 2003 new GRI indicators: EN22 (Re-used and re-cycled water), FN30 (Other indirect emissions of greenhouse effect gases. In tonnes of equivalent CO2), EN17 (Initiatives for the use of renewable energies and the increase of energy efficiency), and EN35 (Total environmental costs: in 2003, the company spent some 239.92 million euros un environmental activities, with a 60 percent increase as regards 2002). Repsol YPF has an Environment Audit Handbook. The criteria established in this handbook consider 3 year cycles so that all of the operational centres might be audited regarding three main issues: management systems, compliance with the law and in- house regulation, and operational practices. Certificate ISO 14001 For Repsol YPF, Certificate ISO 14001 is seen as an external validation that provides additional support before our interested parties: Public Administrations, customers, suppliers and shareholders. The company was granted the Certificate ISO 14001 for most of its main industrial facilities and its logistics system as well as an ever-increasing part of the commercial network, where some 104 station services are already certified. 9.-During 2002, Repsol YPF began the integration of all environmental and safety operational systems. This integration process has gone on in 2003 with the publication of the corporate Environmental and Safety norm and report. In 2003 the Climatic Change Unit has been established with specialised resources in order to optimising the reduction of emissions in the company and the participation in the market mechanisms, either present and future. The year has also been important on account of the activities carried out by the company in order to prevent the effects of the accident suffered by the ship “Prestige” in front of the Galicia coast on 11th November, 2002. Repsol YPF has collaborated with the Administration providing technical know-how to recover the fuel from the shipwreck, carrying on a programme that is pioneering in this type of intervention (the shipwreck is 3,850 metres deep) in order to seal the leaks, data taking and development and successfully trying out a system for extracting the fuel. It has also supplied the means for the collection and management of liquid waste, having treated so far, with no environmental impact, some 35,000 tonnes of fuel. 4.-IN COMPLIANCE WITH THE TRANSPARENCY THAT LEADS THE COMMUNICATION POLICY OF THE COMPANY (THESE PUBLICTIONS GRADUALLY TAKE ON THE FORM AND CHARACTERISTICS OF THE ENVIRONMENTAL REPORT, AFTER THE INTERNATIONAL STANDARDS AS DEFINED IN THE INITIATIVE OF GLOBAL COMPACT, THAT HAS THE PURPOSE OF PUBLISHING SOCIAL, ENVIRONMENTAL AND ECONOMIC DATA AT THE SAME LEVEL. WHICH WERE THE RESULTS OBTAINED DERIVED FROM THE STEPS STATED ABOVE? Society as a whole demands from the companies an efficient economic management, but on top of that, companies should also be responsible and socially committed. Repsol YPF has granted itself an ethical framework that guarantees the balance between the economic management and its commitments to different stakeholders that have relations with the company: good governance, quality in labour relations, social and environmental commitment. Repsol YPF issues at the end of the financial year three reports: annual, social and environmental. In the social report, labour practices and specific actions of social and cultural commitment carried out are stated, also included are sustainability indicators as defined in the International guideline Global Reporting Initiative (GRI), as well as chapter to locate those of an economic, social and environmental nature in the various corporate reports issued by the company. The company joined in 2002 the Global Compact in the United Nations. In the meetings held during 2003, ways to implement the Nine Principles of the Global Compact were discussed as well as working on the design of a system that will allow the objective and careful appraisal of the progress made either in the implementation as in the continuous improvement within the scopes where these nine principles govern. Transparency and social commitment are key values for Repsol YPF that actively takes on for itself as far as this relevant Global Compact is concerned, whose Spanish chapter has been named by UN’s Secretary General as a leader and an example to be followed in other countries. Already in 2004, Repsol YPF joins the Promoting Group of the Global Compact in Argentina, where, together with the YPF Foundation, will act as the driving force among national and regional Argentine companies. SOCIAL ACTION Repsol YPF is Patron of the Fundación Empresa y Sociedad (Business and Society Foundation) and as such, supports its institutional activities and shares its goals to improve strategies, practices and communication of social action. Repsol YPF has granted in 2003 more than 6 million euros to social investment. We now mention the most relevant of them as included in the Social Report. Relations with native communities Bolivia: More than 16,000 people from 47 native communities benefited from the social programme developed in the areas of health, education and productive “micro ventures”. Ecuador: Repsol YPF maintains in its daily activity a close relationship with two native peoples of the Ecuadorian Amazonia: the Huaronies (2,000 people) and the Kichwas. The company carries out with them annual communal health and educational programmes (doctor and dentist services) as well as emergency services to the communities that on account of being located far are not able to get them. Also to be pointed out are the “micro ventures” in the Amazonia area, developed in order to strength the Saving Banks and Rural Credits for the group of women and young people that work for small plantations in the region. In Venezuela, Repsol YPF cooperates in bringing about workshops with leaders of the native communities to explore and identify opportunity for projects that contribute to sustainable social development in the area (“micro credits”, self-managed rural hostels, restoration and conditioning of roads, as well as in the restoration, construction and conditioning of school infrastructures). In Colombia, the company created in 2003 a Social Management Plan in the block of Capachos and San Miguel, focused on education and health, as well as in agriculture and small game. In Argentine, an agreement has been signed an agreement with “Fundación Cruzada Patagónica de Junín de los Andes” (Patagonia Crusade Foundation of Junín of the Andes) to grant educational scholarships to students and to support integral development programmes for the rural communities. Education and Training Also part of the highlights, some programmes should be pointed out such as rural development, computers for schools, “Reading is Basic” in Argentine, “Mathematics for Everybody” in Peru, aimed towards helping students with poor academic performance in this topic, business training for young people in Peru encouraging the creation of junior micro-companies and financing the winning projects. In Spain, the company collaborates in supporting the programme “The energy run” in order to promote among young people interest in energy issues, encouraging environment-friendly consumption habits. “The energy run” has just been granted the “First Communication Prize for Companies” during the 14th Edition of the Energy Excellence Prizes, organised by the Catalonian government. On the other hand, the Repsol YPF Foundation that began its activities in 1996 with the purpose of channelling and promoting scientific, educational and research activities in all the countries where the company is present, has carried out in 2003 several activities aimed towards education such as: The Higher Energy Institute (ISE): this is a pioneering educational institution in Spain. Its main activities are designing and teaching postgraduate studies, seminars and courses aimed towards the continuous training of professionals in the energy and petrochemical sectors as well as promoting research, development and innovating activities. During 2003, the ISE has carried out professional and postgraduate masters and it has also taught a continuous training course on “Energy Technologies for Specialists”. Repsol YPF- Harvard Seminar: this is a high-level debate forum analysing with an open mind the most relevant issued related to energy in all its aspects. In 2003, “the Repsol YPF-Harvard Kennedy School Fellows Programme” was begun destined to support young postgraduate students in their research. Its aim is directed towards analysing current and future problems that affect either to energy policies as well as the environment and natural resources. Health AIDS has become the number one health problem of humankind. Therefore, the company supports the steps taken by the UN’s Global Compact in its fight for the prevention and control of this disease. In 2003, Repsol YPF began AIDS prevention programmes in Bolivia and Trinidad & Tobago, both regions with a high number of people affected by the disease. In Bolivia, a prevention programme has been carried out in Santa Cruz de la Sierra. This programme is aimed towards creating open spaces as well as active commitment in order to promote prevention steps, counselling, treatment and the defence of human rights regarding this illness. In Trinidad & Tobago, Repsol YPF supports the Spanish Red Cross programme in developing the project “AIDS/HIV Prevention and reinforcing ambulance service for social care” in that country. In Brazil, the company supports the Fontilles Foundation in a project aimed towards eradicating leprosy in Sao Félix de Araguala. Leprosy still is one of the main concerns as regards public health in the country. Data given are 4.28 cases for every 10,000 people. In Venezuela, the company organises medical courses in which talks are given on different relevant topics as well as the donation of medical supplies and equipment to welfare centres, talks about delousing and dental courses. In Bolivia, the company helps providing free medical consultation and donating medicines to all the fields where it operates, carrying on vaccination and delousing campaigns. Furthermore, two health centres have been built, one sanitary post, three wells and two potable water networks. In Peru, the company participates ever since 1998 in the Peruvian Fight Against Cancer League. Some 10,000 women, of more than 20 years of age, have been attended. It should also be pointed out that the company supports the AMREF programme, aimed towards improving the sanitary conditions of the most destitute people in the African continent. Social Integration In Spain, the company supports the Victims of Terrorist Acts Foundation whose aim is divulging the democratic values and the defence of human rights as well as helping the victims of terrorist acts and their families. 2003 was the European year of disable people, and Repsol YPF supports this cause by collaborating with several entities in benefit of mentally or physically disabled people such as: the Down Syndrome Foundation in Madrid, by carrying out workshops for mentally disabled people; the Friendly Horse Foundation, encouraging the rehabilitation of mentally and physically disabled people by means of the programme “Therapeutic Horse riding”; Association for the Research and Study of Mental Disability, organising a summer camp to help people suffering from autism; the Also Foundation promoting the social integration of mentally, physically or sensory disabled people by means of sporting activities such as a recreational programme of specially adapted bicycles; the Bobath Foundation by sponsoring the Snoezele Hall of Multi-sensory Stimulation for people affected of palsy; among other activities. In Argentine, ever since the economic crisis, the company takes part in several food contributing campaigns. In Ecuador, the Integral Family and Communities Development project has been carried out in collaboration with the House of Christ Foundation. This is meant to provide decent housing for at least 40 families formerly in poor neighbourhoods in Guayaquil. Furthermore, 400 other families are incorporated to a housing plan offering sanitary services, specially geared at children and mothers. The company also strengthens the economic activities of 200 families by means of self-employment. All of these programmes will benefit more than 2,200 people. In Peru, the company collaborates with the Fundación Peruanos Desaparecidos (Missing Peruvians Foundation) contributing a subsidy that allows the installation of information technology modules in the major transit areas of the main supermarkets in order to receive all type of information. Corporate Volunteers In Spain, Repsol YPF employees supported this cause by sending a group of volunteers to the Galician coast and collecting funds to buy neoprene suits. Also in Spain, the employees took part in .the implementation of two projects of the Junior Achievement Foundation. The first, “Community Leadership”, was aimed at young people between 14 and 16 years; the second one, “Our Community”, was aimed at children between 7 and 8 years of age and was intended to teach the children how the community operates. In Argentine, the YPF Foundation has developed a corporate volunteers programme, “Solidarity Energy” that rewards and collaborates with the best initiatives in support of the community as seen from a competition aimed at the employees. In 2003, agreements were reached with some 44 social organisations of the country. ENVIRONMENT In Venezuela, Repsol YPF carries out a reforesting and crop-planting programme that contributes towards agricultural development and provides means of support and work for community members. Also workshops on recycling are held in educational centres to teach about the re-utilisation of paper. In Brazil, Repsol YPF has sponsored since October, 2000, the “Recycle your Ideas” programme, which takes place in the Tijuca National Park. This includes not only the selective collection of wastes but also teaching people to become aware of the need for conserving the environment and taking advantage of some wastes. All the recycling material is donated to cooperatives that collect paper. With the profits from this programme more than 1,000 people are fed every month. In Argentine, the company carries out the integral maintenance of parks in Buenos Airs and since 1998 takes part in the Neuquen reforesting programme (in the Southwest of the Argentine Patagonia). In Bolivia “forest nursery” programmes are carried out in three guarani communities. Environmental workshops have also been carried out, “Our Environment, Our Home”, by which children are taught how important taking care of the environment is. In Ecuador, the “Sustainable Development for Peasant People” programme has been carried out in order to ensure the sustainability of the peasant activities in communities living close to the area where the company operates in the Amazonia and Esmeraldas, contributing with funds to the regeneration of the native forest also providing technical assistance and “micro credits” , benefiting 6,800 families. 5.- AS AN OPTION, MENTION YOUR FUTURE PLANS AS REGARDS COMMUNICATION OR REPORTS FOR YOUR SHAREHOLDERS On 31st March, during Repsol YPF’s Annual General Shareholders Meeting, the first edition of “Extraction”, the shareholders magazine, was handed out. Furthermore, in the web site an information link has been added that is interesting to the shareholders. It should also be pointed out that the company has the following e mail address: email@example.com, also a telephone number 900100100 for exclusive information to shareholders. Repsol YPF is aware of the importance of the shareholders in all of its operations; therefore everything possible is done in order to encourage and promote their trust in the company. In the short term, it will also seek the help of new technologies in order to supply information regarding its implementations and operations as fast, clear and sure as it could possible be. 6.- COUNTRIES WHERE GLOBAL COMPACT MIGHT BE IMPLEMENTED Repsol YPF, when subscribing the UN’s Global Compact, is assuming the application of its principles not only in Spain but in the rest of the world as well. To wit, the company’s social and environmental activities mentioned above. Repsol YPF applies these principles in the other European countries where it has investments, in Latin America, Northern Africa and the Middle East and the Far East. 7.- FIVE WORDS DESCRIBING REPSOL YPF IN RELATION TO THE GLOBAL COMPACT GRI: Global Reporting Initiative. Corporate Reputation Integral Communication Social Action and Sponsorship Human Rights. 8.- CONTACT PERSON IN THE COMPANY José Manuel Revuelta Lapique Corporate Director for Institutional Affairs, Assistant to the Chairman. firstname.lastname@example.org In-house telephone number: 913 48 8357 Paseo de la Castellana 278 – 28046 Madrid – España 9.- MENTION ANY LINKS OR WEBSITES THAT HAVE ANY INFORMATION ON PROGRESS COMMUNICATION OF THE COMPANY For access, please follow these steps: www.repsolypf.com (choosing the desired language)/All About Repsol YPF/ Corporate Responsibility/Social Commitment/Social Report.
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