CPC

CPC has set targets to reduce its scope 1 and 2 emissions by 49.5% by 2030 and by 100% by 2050, compared to 2005. Due to the lack of data on base year emissions, required activity data and the use of offsets reported by the company, these targets could not be assessed for alignment with a 1.5°C pathway. The company should ensure that these targets align with its 1.5°C pathway and include its scope 3 emissions. Further, it should set intermediate targets no more than five years apart to incentivise near-term actions on its long-term goals. The company should clearly report its base year emissions and any offsets it intends to use to allow for a complete analysis of its targets and progress against them.

CPC’s scope 1 and 2 emissions intensity marginally decreased between 2017 and 2021. This does not align with the company’s 1.5°C pathway, which requires it to reduce its scope 1 and 2 emissions intensity by over 6% per year between 2021 and 2026. CPC does not report the proportion of its total capital expenditure (CapEx) in the 2021 on allocated to low-carbon mitigation or carbon removal technologies. It also does not disclose its total CapEx nor its low-carbon mitigation or carbon removal technologies CapEx planned for the next five years.

CPC’s scope 1, 2 and 3 emissions intensity increased between 2017 and 2021. This does not align with the company’s 1.5°C pathway, which requires it to reduce its scope 1, 2 and 3 emissions intensity by about 4% per year between 2021 and 2026. CPC does not report its revenue in 2021 from its low-carbon products. Also, the company does not disclose its expected revenue over the next five years and, more importantly, the share of revenues originating from low-carbon products. Reporting this information will allow the company to demonstrate its financial commitment to transitioning to a low-carbon future.

CPC aims to expand its 230 solar PV sites with an installed capacity of 11.4 megawatts (MW), aiming to achieve 19.6 MW of generation capacity by 2023. It also aims to expand its 1.2 MW of geothermal generation potential to 4 MW by 2023. Further, CPC is investigating business models to develop lithium titanate (LTO) energy storage materials and expand on its electric vehicle (EV) charging infrastructure. However, the company does not disclose the profitability of its current low-carbon business models and needs to provide information on the planned scale-up of these activities beyond 2023 to demonstrate a commitment to transition.

CPC has set a target to reduce its scope 1 and 2 emissions by 49.5% by 2030 compared to 2005, and aims to achieve zero scope 1 and 2 emissions by 2050. It also aims to expand solar PV generation capacity to 19.6 MW and achieve 4 MW of geothermal power capacity by 2023.

CPC reports some elements of a transition plan, such as scope 1 and 2 emissions reduction targets for 2030 and 2050. The company plans to expand its solar generation capacity to 19.6 MW and its geothermal capacity to 4 MW by 2023. The company also reports its objective to improve the efficiency of its petrochemical plants and increase its fossil gas receiving terminal capacity. However, CPC does not report supporting financial content or provide further details to substantiate how it will achieve these objectives.

CPC currently operates around 230 solar PV sites with an installed capacity of 11.4 MW and has 1.2 MW of geothermal power generation potential. However, it is unclear how impactful this is to CPC’s overall business operations. The company is also engaged in the development of LTO and has completed the construction of electric motorcycle charging infrastructure. CPC’s client engagement strategy takes climate change response and low-carbon development into consideration, but it lacks specific client emissions reduction targets.

Between 2017 and 2021, CPC’s scope 1 and 2 emissions intensity marginally decreased, and its scope 1, 2 and 3 emissions intensity increased. To align with its 1.5°C pathway, CPC needs to decrease its scope 1 and 2 emissions intensity by about 6% annually and its scope 1, 2 and 3 emissions intensity by about 4% annually.

Although CPC has set a long-term target to achieve zero scope 1 and 2 emissions by 2050, the company lacks any targets that consider its scope 3 emissions. CPC has medium-term “green transformation” objectives, such as increasing its renewable energy capacity and engaging in the use of carbon capture and storage (CCS) technologies. However, the company will remain reliant on fossil fuels and discusses assisting the industrial sector in using fossil gas as a fuel.

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.

The company discloses the measures it takes to create jobs to support equality of opportunity for women and vulnerable groups. In particular, it provides employment opportunities at gas stations specifically for women and disadvantaged groups. 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 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 provides long-term training, including management and leadership development training, to its employees. 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.

No evidence was found that the company commits to respecting the health and safety of its workers and that it expects the same commitment of its business relationships. Furthermore, no evidence was found of the company having 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 some indicators of workforce diversity, including the age and gender of its workforce by employee category. However, no relevant disclosure was found of additional indicators of workforce diversity. 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 it pays in each relevant jurisdiction. While the company includes clauses prohibiting bribery and corruption in its business relationship contracts, no evidence was found that it has a policy prohibiting bribery and corruption. No evidence was found that the company has a lobbying and political engagement policy and that it specifies that it does not make political contributions. No relevant disclosure was found of the company’s expenditure on lobbying activities.