National Iranian Oil Company

NIOC provides no evidence that it is aware of the need to reduce its carbon emissions. As a result, NIOC has not set any emissions reduction targets and has not disclosed plans to develop any. The company should develop a long-term target that aligns with its 1.5°C pathway and covers its scope 1, 2 and 3 emissions. Additionally, the company should set intermediate targets at gaps of no more than five years to incentivise near-term action on longer-term goals.

NIOC’s scope 1 and 2 emissions intensity remained static between 2017 and 2022 and is projected to remain static until 2027. This contrasts with the company’s 1.5°C pathway which requires it to reduce its emissions intensity by over 10% annually. The company has not committed to stop oil and gas exploration and expansion, a requirement of the International Energy Agency’s (IEA) 1.5°C Net-Zero Emissions (NZE) scenario, which does not allow for any expansion of producing assets beyond those sanctioned earlier than 2022. Consequently, NIOC is projected to exceed its scope 3 carbon budget by over 100% between 2022 and 2050.

There is no evidence that NIOC has assigned responsibility for climate change to its board or anyone else. The company does not have a low-carbon transition plan. The company should ensure that governance of climate change issues is its board’s responsibility. Then NIOC 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.

There is no evidence that NIOC is developing business activities that would enable the company to decouple financial results from greenhouse gas emissions. A low-carbon future will require the company to diversify its energy mix to renewables and low-carbon fuels or manage the close of its oil and gas business.

NIOC has not set any emissions targets. The company has not developed a vision of what its business will look like in a low-carbon future. The company continues to seek to expand its oil and gas business.

The company does not have a low-carbon transition plan and does not intend to develop one in the near future.

There is no evidence that NIOC is investing in research and development of climate change mitigation and carbon removal technologies. The company does not report its capital expenditure (CapEx) spend on low-carbon technology. There is also no evidence that the company is developing new business models for a low-carbon future.

NIOC’s scope 1, 2 and 3 emissions intensity decreased marginally between 2017 and 2022, though not at the rate required by its 1.5°C pathway. This change is likely due to an increase in the proportion of the company’s production from gas. The company’s scope 1, 2 and 3 emissions intensity is projected to increase marginally between 2022 and 2027. To align with its 1.5°C pathway NIOC needs to decrease its scope 1, 2 and 3 emissions intensity by approximately 4% annually.

The company’s lack of targets and strategy suggests that the company is not committed to the low-carbon transition. The company is predicted to exceed its scope 3 emissions budget between 2022 and 2050 by over 100% and has not committed to stopping oil and gas exploration and expansion.

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. No public commitment by the company was found stating its intention to re- and up-skill workers displaced by the transition to a low-carbon economy. Additionally, no evidence was found that the company re- and up-skills workers in a way that ensures gender balance and inclusion of vulnerable groups.

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 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.

No policies or commitments of the company related to key ethical business topics personal data protection, tax, bribery and corruption, and lobbying and political engagement were found in the public domain. This includes ensuring ethical business conduct throughout its operations and in its relationships with business partners.