Leading Energy Transition in Argentina

Energy is essential for economic development and people’s quality of life, and this is reflected in the ever-increasing demand for power at national and global level.

We acknowledge the pressing need to reconcile the growing demand for energy with a future low in carbon emissions, and meet the challenges that this entails.

A clean and efficient energy future involves the use of renewable energy sources, a higher penetration of cleaner energies such as natural gas, and improvement in the quality of liquid fuels, biofuels, and energy efficiency and resource initiatives. Each region or country will have to develop its own roadmap for transition based on its specific starting point, resource availability and capabilities.

YPF’s vision is to be a competitive, integrated energy company leading energy transition in Argentina and focused in generating affordable and sustainable energy. Sustainability is embedded into our operations and strategy.

We are inspired by the United Nation’s Sustainable Development Goals, and we are committed to the Ten principles of the United Nation’s Global Compact.

CO2 Emissions Reduction

10% reduction of CO2 equivalent emissions intensity by 2023.

In the next few years, oil and gas projects will continue to be part of our project portfolio. We are then committed to reducing the total intensity of carbon emissions associated with our operations by working on concrete initiatives already underway and new ones. These projects include energy efficiency standards across all operations as well as a search for solutions for carbon capture, storage and reuse.

> For more information, see Sustainability Report 2017, page 72

Electric Power and Renewables

#3 player in electric power generation and #1 renewable energy company, with 20% of its own generation coming from renewables.

We have set ourselves two main goals that will be achieved through YPF LUZ: grow from the fifth to the third largest electric power generator in Argentina, using diverse sources (more efficient thermal, wind and solar energies); and become the leader in renewables generation, with 20% of our own generation coming from renewable sources. Manantiales Behr Wind Farm started its operations in 2018. Investment for the next five years is estimated at approx. USD 3 billion.

> For more information, see Sustainability Report 2017, page 78

Resource and Energy Efficiency

10% improvement in energy efficiency by 2023.

70% of the fuels to be produced in 2023 will have low sulfur content

Reducing the intensity of the resources used to conduct our operations is another focal point of the work we have set ourselves to do. This process may also positively affect corporate costs. We have a set of actions including energy efficiency programs and pilot projects in place, such as water use, and are committed to encouraging the identification of opportunities linked to the circular economy.

> For more information, see Sustainability Report 2017, page 72

Innovation and Technology

Innovation and technology are key to both managing our daily operations and successfully completing the transformation process in our company. For this reason, we have set up Y-TEC, the leading Argentine company in the generation and transfer of technology solutions for the energy industry. Our main goals are to govern a balanced R&D portfolio designed to create value, and manage co-innovation technology models with Academia, the entrepreneurial ecosystem, and world-class partners.

As regards digitalization specifically, the Strategic Plan envisages working on four chapters: technology applied to operations, technology applied to customer relationship, analytics and mobility.

> For more information, see Sustainability Report 2017, page 66

Our Approach

As the leading energy company in Argentina, we take on energy transition challenges as an opportunity for YPF’s growth and evolution.

YPF understands sustainability as a way of doing business that involves:

  • • Transparent and responsible work at economic, environmental and social levels.

  • • Profitability and focus on growth through innovation and new technologies.

  • • Short- and long-term value generation for shareholders, investors, partners, customers, employees, suppliers, the communities where we operate, and our country.

That is why sustainability lies at the core of our corporate strategy, governance and decision-making.

Our Priorities

We prioritize sustainability issues that are related to a high-value business, our stakeholders concerns, the context we face and the strategy we have defined.

Our Code of Ethics and Conduct and our corporate values guide our understanding and responses to these issues.

Safe and secure operations are paramount.

At the same time, we understand that organizations have a key role to play to contribute towards the 17 Sustainable Development Goals (SDGs) set by the United Nations at global level and the Paris Climate Agreement, both of which the Argentine government has ratified.

Our challenges and most significant contribution are focused on the SDGs specifically related to both the transition to low-carbon economies and sustainable production.

In addition, we have strengthened our commitment towards SDG 5 on Gender Equality and SDG 17 on global partnerships and effective cooperation, which can be a key driver for meeting our sustainability initiatives.

> For more information, see Sustainability Priorities