Saudi Electricity Company

SEC previously had a target to reduce its scope 1 emissions by 25% by 2025 compared to 2016. The company appears to have dropped this target. As of 2022, it had reduced its emissions by 6% compared to 2016 and its total scope 1 emissions have been rising since 2018. The company should develop a long-term target that aligns with its 1.5°C pathway and covers both its own and purchased energy generation. Additionally, the company should set intermediate targets at gaps of no more than five years to incentivise near-term action on longer-term goals.

The emissions intensity from both the company’s own energy generation and from purchased power have not decreased from 2017 to 2022. To align with the company’s 1.5°C pathway, it will need to make significant emissions reductions over the next five years. The company’s emissions reduction initiatives for its own energy generation are focused on increasing the thermal efficiency of its power plants and replacing all liquid fuel with gas by 2030. However, these initiatives are unlikely to lead to the rate of emissions reduction required, unless combined with the expansion of the company’s renewables capacity.

There is no evidence that SEC has a credible low-carbon transition plan. 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 scenario analysis to ensure its ambition is sufficient to align with a 1.5°C pathway.

SEC has not set any emissions reduction targets and has not developed a transition plan. The company previously had a target to reduce its scope 1 emissions. However, it appears this target is no longer active.

SEC’s long-term plans are focused on renewables, alongside the development of carbon capture and hydrogen capacity to decarbonise existing gas assets. The company intends to replace all oil-fuelled capacity with gas by 2030. Although gas does produce lower emissions than oil, this switch will not be sufficient for the company to align with a 1.5°C pathway.

SEC’s current focus is facilitating the growth of renewable electricity provision with a planned investment of USD 3 billion by 2026 to connect almost 16 gigawatts (GW) of renewable energy projects to the grid. However, there is little evidence that the company is taking significant action to reduce the emissions from its own energy generation.

The company has not made any significant reductions in the emissions intensity of either its own or purchased energy generation. SEC’s renewable energy generation has decreased over the last three years. The company has not made significant changes to its generation mix, which is split between gas and oil.

SEC is investing in connecting more renewables to the grid in Saudi Arabia. However, the company is not taking any significant action to reduce the emissions of its own energy generation. The company previously had an emissions reduction target for 2025, but it appears to have dropped this target.

No evidence was found that the company commits to social dialogue or discloses 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.

The company discloses the actions it takes to provide employment opportunities for members of the community through the programs and training courses offered by the company. However, 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. 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 re- or up-skill.

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.

The company discloses the gender of its workforce by employee category. However, no other 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.

The company discloses its corporate income tax paid for each relevant jurisdiction. However, no other 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.