Reads

Repsol

Reads, a tool for addressing impacts on nature and human wellbeing through a monetary valuation approach, enables companies to embed environmental considerations in their business strategies for enhanced decision-making. Reads allows for the quantification and valuation of environmental impacts on Natural Capital by following the approach suggested in the Natural Capital Protocol and the NCC Biodiversity Guidance. It is based on a methodology (previously known as GEMI) which is aligned with the Natural Capital Protocol, the IPIECA guidelines for Ecosystem Services Assessments, the EEA Common International Classification of Ecosystem Services (CICES), and the ISO 14008:2019 for Monetary valuation of environmental impacts and related environmental aspects. The methodology has been reviewed and endorsed by the UN Environment Programme World Conservation Monitoring Centre and the Capitals Coalition.

Reads has been developed thanks to a wide group of people and organizations who have contributed their time and expertise. The full list of participants and collaborators can be found at Repsol website (https://www.repsol.com/en/sustainability/sustainability-pillars/environment/reads-project/index.cshtml) where the methodology is publicly available under Creative Commons License.

A Natural Capital assessment of a project is completed in its entirety using Reads or can be divided into project components (infrastructures). Reads identifies the impact drivers of the project / activity under assessment (i.e., drivers that affect local ecosystems, water consumption, waste generation, emission of chemicals and GHG). The tool allows for the pre-selection of impact drivers, depending on the activity type and location (onshore / offshore), by allowing the user to import impact drivers from other activity types. The quantification module can be used to calculate the Biophysical Units that represent the consequences of the environmental impacts on a yearly basis. The tool incorporates screening models to calculate the impacted biophysical units due to the discharges of air emissions, liquid discharges, cuttings discharges or generated noise (onshore and offshore). Other impacts (e.g., visual impacts on landscape) require the use of GIS-based tools. The valuation process provides economic valuation of the impacts consequences using several valuation databases, which can be adjusted to the project conditions. Economic valuation results are modulated by incorporating social and biodiversity priorities, resulting in dimensionless Impact Units. Environmental Economic Values (EEVs) and Impacts Units (IUs) are expressed in Net Present Value (NPV) to adjust for the time value of money by applying a discount rate and to support decision-making. This information helps to focus on most material aspects and to simulate mitigation measures from a CBA standpoint. Reads is an effective means of evaluating an operation (at the project, process, or site level) to arrive at an appropriate solution resulting in the least environmental impact given a set of cost and benefit constraints. The evaluation follows a stepwise process: 1. Identify impact mitigation options (avoid, reduce, restore, offset), 2. Assign overall performance, expressed as impact reduction (%) for negative impacts, 3. Perform cost-benefit appraisal: CAPEX, OPEX, and ABEX costs adjusted to Net Present Value (NPV), and 4. Appraise KPIs/metrics and select the most efficient/effective mitigations.