Emirates National Oil Company

The company does not disclose its research and development (R&D) expenditure on low-carbon technologies. To meet the sectoral-level expectation, at least 77% of the company’s total R&D investments should be dedicated to low-carbon technologies.

The company has not developed a low-carbon transition plan or set any emission reduction targets. 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. The plan should be informed by scenario analysis to ensure that the plan’s ambition is sufficient for a 1.5°C pathway.

ENOC has not set any emissions reduction targets. By 2030, it aims to reduce energy consumption by 11%.

The company has not developed a plan to transition away from fossil fuel production. It plans to reduce its energy consumption via the use of rooftop solar systems and green building design. It has installed a small amount of electric vehicle (EV) charging units for customers and launched biodiesel as an alternative clean fuel.

In 2020, the company supplied 2.16 million litres of biodiesel, which remains proportionally negligible in comparison to the company’s oil and gas production. The company does not report any financial information, including capital expenditure (CapEx), research and development (R&D) expenditure and revenue from low-carbon products.

The company’s scope 1 and 2 emission intensity has decreased by almost 5% annually from 2017 to 2022 – likely due to geographic shifts in the company’s oil production operations.

ENOC shows very limited efforts to reduce its emissions. The company’s lack of targets and strategy suggests that it is not committed to the low-carbon transition. The company has not committed to stop oil and gas exploration and expansion and is planning to increase its oil production by 300,000 barrels per day. The company is projected to exceed its scope 3 carbon budget by 80% between 2022 and 2050.

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 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 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 upskilling and training opportunities for workers and affected stakeholders. For instance, it supports schooling for those in need and works to educate 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.

The company has a grievance mechanism available to workers and external stakeholders, where issues related to human rights can be reported. However, no other 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 commits to respecting the health and safety of its workers and expects the same commitment of its business relationships. Additionally, the company discloses some information about the diversity of its workforce. The company can however strengthen its disclosure on these subjects, as well as on its living wage and working hours practices.

The company has a policy prohibiting bribery and corruption and includes corresponding clauses in its contracts with business relationships. However, no other policies or commitments of the company were found in the public domain related to personal data protection, tax, bribery and corruption, lobbying and political engagement or ensuring ethical business conduct throughout its operations and in its relationships with business partners.