GAIL (India)

Although GAIL has set targets to reduce its scope 1 and 2 emissions by 100% by 2040, along with a target to reduce its scope 3 emissions by 35% by 2040, compared to 2020-21. Due to the lack of clarity on the use of offset, this target could not be assessed for alignment. The company should develop targets that align with its 1.5°C pathway. Additionally, the company should set intermediate targets at gaps of no more than five years to incentivise near-term actions on a longer-term goal. The company should clearly report its base year emissions and disclose any offsetting it intends to use to allow for a complete analysis of its targets and progress against them.

GAIL’s scope 1 and 2 emissions intensity remained static 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 about 16% per year between 2021 and 2026. GAIL does not report the proportion of its total capital expenditure (CapEx) spend made in the reporting year, in low-carbon mitigation or carbon removal technologies. GAIL has not committed to stopping oil and gas exploration and expansion. In fact, the company is committed to the growth of the gas-based economy.

Research and development (R&D) expenditure on low-carbon technologies will be essential for GAIL to develop a low-carbon product portfolio and be successful in a low-carbon economy. GAIL reports investing in low-carbon technology research and development (R&D) into green hydrogen, battery technology, catalysts and process optimization. However, the company does not disclose any financial information for its R&D into mature and non-mature climate change mitigation nor for its carbon capture and carbon removal technologies.

GAIL’s scope 1, 2 and 3 emissions intensity remained relatively static 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. The company does not disclose its expected revenues over the next 5 years, and more importantly, the share of revenues originating from low-carbon products. No evidence was found that the company is offering energy-efficiency services to customers.

To support the company’s emissions reduction targets, GAIL has committed to developing a net-zero roadmap to achieve decarbonization targets in line with the IEA’s NZE Scenario. GAIL is building an additional 9,926 km of gas pipelines to establish the National Gas Grid. GAIL also indicates that it has an energy consumption target for 2022, but does not provide details on the specifics of this target.

GAIL’s net-zero action plan focuses on the following pillars: operational decarbonization; energy transition; carbon capture utilization and storage (CCUS) and offsetting. GAIL’s action plan discusses the use of energy efficiency measures for its offices and operations, the expansion of its renewable energy capacity, exploration into alternative green fuels (e.g. compressed biogas (CBG)) and the use of captured carbon to develop fuels and nature-based offsetting.

GAIL is currently using Environment Management Systems (EMS) and Energy Management Systems (EnMS) to improve efficiency, recommending cost-efficient and environmentally sustainable alternatives. GAIL has replaced old motors with new energy-efficient ones, retrofitted/replaced conventional lighting with energy-efficient LED and lighting systems, replaced old and inefficient air conditioning systems, installed new battery chargers and has installed 0.13 GW of renewable energy capacity.

In 2021, GAIL commissioned a 100 megawatt (MW) solar generation project. Despite this, between 2017 and 2021, the company’s scope 1 and 2 emissions intensity remained static. To align with its 1.5°C pathway CPC needs to decrease its scope 1 and 2 and emissions intensity by about 16% annually. Additionally, GAIL’s scope 1, 2 and 3 emissions intensity remained relatively static. To align with its 1.5°C pathway GAIL needs to decrease its scope 1, 2 and 3 emissions intensity by about 4% annually.

Although GAIL has set a target to reduce its scope 3 emissions by 35% by 2040, compared to 2020-21, its scope 3 emissions increased by about 6% in 2021-22. GAIL’s locked-in emissions from current and planned assets are projected to exceed its total 1.5°C carbon budget for the period between 2022 and 2050 by nearly 96%. GAIL aims to expand its renewable energy capacity to 1 GW by 2025 and then to 3 GW by 2030, but its net-zero action plan is reliant on offsets, one of the plan’s four pillars.

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 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 skill development for women and vulnerable groups. It does this through skill development programs for underprivileged youth, and specific efforts to help women and adolescent girls through training that aids their employability. 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.

The company discloses some information about its workforce, including the share of workers covered by collective bargaining agreements, as well as some measures of workforce diversity. Furthermore, the company has a public policy commitment to respecting the health and safety of its workers. However, the company can strengthen its disclosure on these subjects, as well as on other key decent work issues, including living wage and working hours practices.

The company commits to protecting personal data, discloses income tax paid for each jurisdiction where the company is a resident for tax purposes, and describes its process for identifying corruption and bribery risks in its own operations. However, the company can strengthen its performance and disclosure on these and other key ethical business topics including responsible lobbying and political engagement.