IndianOil

Since the previous assessment, IndianOil has set a long-term target for the first time. The company aims to achieve zero scope 1 and 2 emissions by 2046. To improve, the company should also set a scope 3 target, report its use of offsets and set interim targets at gaps of no more than five years between the reporting year and its furthest target end date.

IndianOil reports that it is investing in R&D into alternative fuels, including second and third-generation biofuels, renewable hydrogen and solar. IndianOil has set up a dedicated Centre for Alternative and Renewable Energy (i-CARE). IndianOil also reports that it is investing in enzyme and solvent combination carbon capture and storage technology. However, the company does not disclose financial information on climate-related R&D spending. To meet the sectoral-level expectation, at least 77% of the company’s total R&D investments should be dedicated to low-carbon technologies.

IndianOil is a fully integrated player, but its upstream segment accounts for less than 1% of its activity. Therefore, IndianOil is reliant on its supply chain to reduce its emissions. However, although the company acknowledges the importance of working with its supply chain, it does not have a supplier engagement strategy. By engaging with its supply chain IndianOil can create demand for low-carbon alternatives. It can achieve this by requiring its suppliers to publicly report on their emissions and other low-carbon requirements and include emissions reduction in the selection of new suppliers or contract renewal of existing suppliers.

IndianOil has set a 2046 target to achieve zero scope 1 and 2 emissions by 2046. It has not set a scope 3 target or methane reduction target.

To reach the target of reducing scope 1 and 2 emissions to zero by 2046, IndianOil aims to achieve 20% ethanol-blended petrol, in line with the government mandate. The company plans to install 10,000 electric vehicle charging stations by 2025 and intends to install 5 gigawatts (GW) of renewable energy capacity for its refineries by 2025. IndianOil reports that it plans to invest in renewable hydrogen and second and third-generation biofuels. However, the company has not set long-term key performance indicators nor disclosed actions that will significantly impact its scope 3 emissions.

IndianOil does not disclose financial investment into research and development but reports that it has set up a dedicated Centre for Alternative and renewable energy (i-CARE) and is investing in nanotechnological interventions for enhanced performance of fuels. The company also describes the need for new business in expanding carbon capture and storage, renewable energy and alternative fuels, but does not quantify its plans or current business in these sectors.

Driven by its midstream refining business, IndianOil’s scope 1 and 2 emissions intensity has been increasing since 2018. To align with its 1.5°C pathway IndianOil needs to decrease its emissions intensity by 6% annually. The company is planning the expansion of its exploration and production segment, and, as a consequence, IndianOil is projected to exceed its scope 3 carbon budget by over 100% between 2022 and 2050.

IndianOil has begun to consider how it can transition but must be more ambitious in its goals. The company set targets for its scope 1 and 2 emissions, but not its scope 3 emissions. It is researching alternative fuels but does not disclose financial investment or biofuel or renewable hydrogen production data. IndianOil should cease the expansion of its fossil fuel products or any improvements made will be undermined.

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.

The company takes actions to ensure gender balance and inclusion of vulnerable groups when creating and promoting access to green and decent jobs. It has preferential guidelines for providing retail outlet dealerships to women and promotes indigenously produced compressed bio gas to provide rural employment opportunities. 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. 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 introduces an e-learning platform and mid-career training programs to its employees. 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 specialised coaching and mentoring to underprivileged girls in local communities. 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 commits to respecting the health and safety of its workers. 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 commits to protecting personal data and has a privacy statement regarding the collection, sharing and access to personal data. However, no policies or commitments were found in the public domain related to tax, bribery and corruption, lobbying and political engagement or ethical business conduct throughout its operations and in its relationships with business partners.