Bharat Petroleum

Bharat Petroleum has not set robust targets. The company has set a target to reduce its scope 1 and 2 emissions by 100% by 2040 compared to 2019, and to reduce scope 1 and 2 energy intensities from refineries by an unquantified amount 2030. The company should set short, medium, and long-term targets covering scopes 1, 2, and 3 with net zero targets. Interim targets should be spaced no more than 5 years apart from now until its net-zero year to incentivise action.

There is no evidence that Bharat Petroleum engages customers on climate change issues to target emissions reductions. To reduce scope 3 emissions, the company should set out a clear strategy to promote its low-carbon solutions to customers. This could include providing financial incentives such as discounts or marketing campaigns.

Bharat Petroleum is on track to exceed its carbon budget by approximately 240% between 2022 and 2050. The production of oil is projected to increase until about 2030. It will thereafter begin to reduce. However, gas production is projected to ramp up significantly, peaking around 2044. Despite lower combustion emissions for gas, the scale of the projected increase is set to blow Bharat Petroleum’s scope 3 budget considerably. Furthermore, the company is still exploring for new fossil fuel sources, and it has not committed to any phase-out of oil and gas.

Bharat Petroleum has some low-carbon activities, but they remain in the early stages of development. The company produces second-generation biofuels through the use of rice straw, but also produces first-generation biofuels which are not low-carbon products. Bharat Petroleum also has some EV charging stations. To be prepared for the low-carbon future and allow the transition away from oil and gas, the company should allocate sufficient investment in these activities. Currently, Bharat Petroleum does not disclose its capital expenditure and research and development investment it allocates to second-generation biofuels.

Bharat Petroleum commits to a 100% reduction in scope 1 and 2 emissions by 2040 from the 2019 baseline, and to reduce energy intensity for refineries for scope 1 and 2 by an unquantified amount by 2030. Bharat Petroleum plans to expand its fast-charging EV highway, but it has not quantified the planned growth. The company also plans to increase biogas production to up to 3 million tonnes by 2023-2024. It aligns to India’s Nationally Determined Contribution (NDC) and net zero by 2070 national objective.

Bharat Petroleum plans to reduce its scope 1 and 2 emissions intensity by using more renewable energy to power operations. The company has invested in biofuels, however, the split between first- and second-generation biofuels cannot be determined. First-generation biofuels are not considered as low carbon. Bharat Petroleum does not disclose how much it plans to invest in low-carbon technology or research and development (R&D) in future. It does plan to scale up its biogas production.

In the reporting year, Bharat Petroleum commissioned seven biogas plants and has installed 89 EV charge points. It launched a pilot for a fast-charging highway, installing fast-charging EV points every 100 kilometres (km) along a 900km highway. It also achieved a 9% ethanol blend ratio in its biofuels. There is no evidence of emissions reduction initiatives with suppliers or clients. Bharat Petroleum also increased its annual hydrocarbon product production by 10% compared to the previous year.

Bharat Petroleum has set an emissions reduction target since the previous assessment but is not on track to achieve this target with scope 1 and 2 emissions intensity increasing rather than reducing. The company’s scope 1, 2, and 3 emissions intensity has slightly increased, driven by the increase in scope 1 and 2 intensity between 2017 to 2021, which is not in line with the 4% annual reduction required by the benchmark pathway.

Bharat Petroleum has started to develop low-carbon business models, but there is no evidence to suggest that these activities are planned to be scaled up to be profitable. The company still remains wholly reliant on fossil fuels for its revenue. The company has set a scope 1 and 2 emissions reduction target but has since increased its scope 1 and 2 emissions.

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 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. The company discloses the actions it takes to provide upskill and training opportunities for workers and affected stakeholders. For instance, it conducts webinars and imparts training and certified courses to employees to build their capacity. Furthermore, the company discloses the measures it takes to embed equality of opportunity for women and vulnerable groups in these actions. It does this through a skills program called ‘Nanhi Kali’ that supports underprivileged girls’ education. However, no evidence was found of the company having a process for identifying skills gaps for workers and stakeholders affected by the low-carbon transition 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.

While the company commits to respecting the health and safety of its workers, no evidence that it expects the same commitment of its business relationships. No evidence was found of a time-bound target for paying all workers a living wage. While the company discloses the proportion of its direct workforce covered by collective bargaining agreements, no relevant disclosure was found of the company’s required working hours. The company discloses the age and gender of its workforce by employee category. No evidence was found that the company commits to gender equality and women’s empowerment.

No evidence was found that the company commits to protecting personal data and that it has a privacy statement regarding the collection, sharing and access to personal data. No relevant disclosure was found of the company’s global tax strategy and the corporate income tax paid for each relevant jurisdiction. The company does have a policy prohibiting bribery and corruption, and it includes corresponding clauses in its contracts with business relationships. No evidence that the company has a lobbying and political engagement policy and that it does not make political contributions. No relevant disclosure was found of the company’s expenditure on lobbying activities.