Pampa Energia

Pampa Energia currently lacks any emissions reduction targets. The company should set a long-term net-zero target for 2045 or earlier, consistent with the International Energy Agency’s (IEA’s) recommendation for electricity generation companies in emerging economies. Furthermore, Pampa Energia should set intermediate targets, also aligned with its 1.5°C pathway, at gaps of no more than five years, to incentivise near-term action on longer-term goals.

While Pampa Energia is actively expanding its wind power capacity, there is no evidence that the company has adopted a low-carbon transition plan, or that it uses climate scenario analysis in its business plans. The company should establish a time-bound action plan that outlines how it will transition to a low-carbon economy. This plan should include short-, medium- and long-term targets, verifiable and quantifiable key performance indicators and financial commitments. Further, the plan should be informed by scenario analysis to ensure that its ambition is sufficient to align with a 1.5°C pathway.

Pampa Energia operates 5,398 MW of electricity generation capacity (comprising 71% gas, 23% hydropower and 6% wind power). Since 2017, it has added 324 MW of wind power capacity and is constructing a further capacity of 158 MW. Pampa Energia plans to grow its PEPE VI wind farm to a 300 MW capacity at a cost of USD 500 million. However, despite the growth in its wind power, gas accounted for 87% of the company’s electricity generation in 2022. Furthermore, the company has a 260 MW gas plant under construction. Following the completion of its gas and wind projects, the share of gas in the company’s energy generation capacity will only drop to 68%. To align with a 1.5°C future, the company must accelerate its renewable energy expansion and phase out gas, targeting net-zero emissions by 2045.

Pampa Energia currently lacks any emissions reduction targets and has not demonstrated any long-term commitments to reduce its reliance on gas power generation. The company has not developed a vision of what its business will look like in a low-carbon future.

The company has not developed a comprehensive low-carbon transition plan nor indicated intentions to develop one in the future. Despite the lack of a low-carbon transition plan, the company has committed to installing a wind farm to create a 300 MW capacity of renewable power generation through its project PEPE VI, which will almost double its current wind power capacity. This project is planned across three phases with an estimated investment of USD 500 million.

The company is currently expanding the capacity of its PEPE IV wind farm by 63 MW and constructing the first stage of its new PEPE VI wind farm with a capacity of 94.5 MW. In addition, Pampa Energia purchased a 50% stake in Greenwind, a company with a 100 MW wind farm, and 100% of VAR, a company which also operates a 100 MW wind farm. However, Pampa Energia also invested USD 154 million in gas generation in 2022 and is constructing a combined cycle gas plant with a capacity of 280 MW.

In 2017, Pampa Energia had no wind power generation. As of 2022, the company has started generating 5% of its electricity using wind power, contributing to a reduction in emissions intensity between 2017 and 2022. Pampa Energia’s gas-fired generation also increased throughout this period, growing by 32%.

Pampa Energia’s recent and upcoming expansion of wind power generation is undermined by concurrent increases in its gas-fired electricity generation. The gas plant the company is constructing is set to have nearly double the capacity of its two wind farms currently under development. Additionally, Pampa Energia undertakes oil and gas exploration and production. In 2022 it produced 3.57 billion cubic metres (m3) of gas. Without any low-carbon transition plan, it is unclear how the company will transition to a low-carbon economy.

The company publicly discloses a commitment to engaging in social dialogue with workers and unions. However, no relevant disclosure was found regarding the categories of stakeholders it engages with on a just transition. Nor was there any evidence to show the company’s ongoing social dialogue and meaningful engagement with affected stakeholders. No evidence was found of the company undertaking just transition planning to mitigate the social impacts of the low-carbon 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 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. The company discloses the actions it takes to provide training opportunities for workers and affected stakeholders. For instance, it offers a young talent programme and digital transformation programmes to employees and communities. However, no relevant disclosure was found of the company embedding equality of opportunity for women and vulnerable groups in these actions. Furthermore, no evidence was found of the company having a process for identifying skills gaps for workers and affected stakeholders or a public commitment to help workers displaced by the transition to reskill or upskill.

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 company policies or commitments 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. The company does, however, have a grievance mechanism available to workers and external stakeholders.

While the company commits to respecting the health and safety of its workers, there was no evidence to indicate that it expects the same commitment of its business relationships. Further, the company discloses some indicators of workforce diversity, including the age and gender of its workforce by employee category. The company can, however, improve disclosure on its living wages, collective bargaining agreements, working hours and commitment towards gender equality and women’s empowerment.

The company commits to protecting personal data. It also has a policy prohibiting bribery and corruption, and it includes corresponding clauses in its business relationship contracts. However, it can improve disclosure on its privacy statement, global tax strategy, corporate income tax paid in different jurisdictions, lobbying and political engagement policy and expenditure on lobbying activities.