Inter RAO

Inter RAO aims to achieve a 7% reduction in its scope 1 emissions intensity by 2030 compared to 2019. This target falls far short of the company’s 1.5°C pathway, and the company needs to increase its ambition by almost five times to align. Further, the company should set long-term and intermediate targets at gaps of no more than five years to incentivise near-term action on its longer-term goal. The company should clearly report any offsetting it intends to use to allow for a complete analysis of its targets and progress against them.

Inter RAO shows no plans to decrease its use of coal. The company is focusing on import substitution and energy efficiency improvements and does not invest in low-carbon technologies. As a result, the company is projected to significantly exceed its 1.5°C carbon budget between 2022 and 2037 as it is forecast to continue to rely almost entirely on fossil fuel power generation. Inter RAO needs to start planning its investments in low-carbon technologies and business models in alignment with the International Energy Agency’s (IEA’s) Net Zero by 2050 (NZE) Scenario.

There is no evidence that Inter RAO aims to develop a low-carbon transition plan. Inter RAO has identified several risks which were not assessed as critical for the company. The company should establish a time-bound action plan that outlines how it will transition to a low-carbon economy. This should include medium- and long-term targets, verifiable and quantifiable key performance indicators and financial commitments. Further, the plan should be informed by a comprehensive scenario analysis to ensure that its ambition aligns with a 1.5°C pathway.

Inter RAO aims to achieve a 7% reduction in its scope 1 emissions intensity by 2030 compared to 2019. However, the company needs to increase its ambition by almost five times to align with its 1.5°C pathway. The company has not set any other emissions reduction targets.

Inter RAO has not developed a low-carbon transition plan but discloses only some elements of its emissions reduction strategy. In the short term, the company plans to modernise and increase the energy efficiency of its existing fossil fuels-based facilities. The company is also planning to explore carbon capture, utilisation and storage (CCUS) technologies. No evidence was found on any long-term actions planned by the company.

Inter RAO does not develop any low-carbon business models. Its primary electricity and heat generation sources are fossil gas and coal. The company’s consumption of both has increased in 2022 compared to 2017. The company does not report any investments in low-carbon technologies or low-carbon research and development (R&D).

The company’s emissions intensity increased between 2017 and 2022. Its electricity generation has relied almost entirely on gas and coal.

The lack of ambitious emissions reduction targets, a coherent transition plan and financial commitments for decarbonisation, raise doubts about the company’s intention and capability to shift towards a low-carbon economy.

No evidence was found of the company’s commitment to social dialogue or of the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders. No evidence was found of the company undertaking low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in its just transition planning.

No public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s action to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks. No public commitment by the company was found stating its intention to re-skill and up-skill workers displaced by the transition to a low-carbon economy. Additionally, no evidence was found that the company re-skills and up-skills workers in a way that ensures gender balance and inclusion of vulnerable groups.

No relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders. No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

No policies or commitments of the company related to respect for human rights were found in the public domain. This includes the necessary policies and systems by which the company can ensure respect for basic human rights in its operations and supply chain.

No evidence of the company s policies or commitments related to key decent work issues were found in the public domain. These issues include the provision of secure, safe and healthy workplaces, where workers are fairly renumerated and have a meaningful say in decision-making.

No policies or commitments of the company related to key ethical business topics personal data protection, tax, bribery and corruption, and lobbying and political engagement were found in the public domain. This includes ensuring ethical business conduct throughout its operations and in its relationships with business partners.