QatarEnergy

QatarEnergy is aiming to reduce its upstream scope 1 and 2 emissions intensity by 15% by 2030 and 25% by 2035 compared to 2013. For the company’s liquified gas facilities, it aims to reduce emissions intensity by 25% by 2030 and 35% by 2035, compared to 2013. However, the company has not set any targets that include its scope 3 emissions which makes up the majority of the company’s emissions. QatarEnergy 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.

QatarEnergy shows some elements of transition planning having set out how the company plans to reduce its operational emissions through methane reductions, using renewables, carbon capture and storage (CCS) and efficiency improvements. However, the company does not include any targets or levers to reduce its scope 3 emissions. 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.

QatarEnergy is planning to expand its upstream gas production by 64% from 2021 to 2030. The company considers this to be compatible with limiting warming to 1.5°C, this is despite the company assessing the resilience of its gas strategy against the IEA’s stated policy scenario under which 1.5°C is expected to be exceeded around 2030. This does not align with the International Energy Agency (IEA) Net Zero Emissions (NZE) by 2050 Scenario, which does not allow for the expansion of producing assets beyond those sanctioned prior to 2022. As a result of this planned expansion, the company is expected to significantly exceed its 1.5°C carbon budget for the period 2022-2050.

QatarEnergy has set scope 1 and 2 emissions intensity reduction targets to reduce its upstream emissions by 25% by 2035 and the emissions from its liquified gas facilities by 35% by 2035, both with a 2013 base year. However, the company has not set any targets for its scope 3 emissions and has not set any targets beyond 2035.

QatarEnergy is reducing its methane intensity and its flaring with a commitment to achieve zero routine flaring by 2030. The company is also building solar capacity to power its operations and expanding its use of CCS with plans to store 11 million tonnes of CO2 (MtCO2) per year by 2035. The company also intends to expands its production of blue hydrogen, hydrogen produced from gas using CCS and utilize its hydrogen to produce blue ammonia

In 2021 the company had 400 megawatts (MW) of installed solar capacity and it plans to expand this to 1,675 MW by 2024 and 5,000 MW by 2035. QatarEnergy captured 1.2 MtCO2 in 2021 and plans to reach 9 MtCO2 per year by 2030. The company is also putting in place increased monitoring to improve methane emissions data and is implementing initiatives to reduce waste and improve efficiency.

QatarEnergy has achieved a slight decrease in its scope 1 and 2 emissions intensity over the period 2017 to 2021 however the reduction has not been sufficient to align with its 1.5°C pathway which requires an average annual reduction of almost 8% for the period 2021 to 2026. There is no evidence that the company has significantly reduced its scope 1, 2 and 3 emissions intensity over the period 2017 to 2021.

QatarEnergy has made some progress towards reducing its scope 1 and 2 emissions intensity and is targeting further reductions for 2030 and 2035. However, the company is not planning to reduce its scope 3 emissions and is planning to expand its gas production significantly over the next ten years. QatarEnergy is expected to exceed its carbon budget by over 100% for the period 2022 to 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 training and educational opportunities for workers and affected stakeholders. For instance, it provides training for career development to its staff as well as support for students, both those undertaking vocational studies as well as university studies. 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 commits to respecting human rights. However, no evidence was found of the company’s process to identify, assess and mitigate salient human rights risks in its own operations and supply chain. Moreover, no evidence was found of the company disclosing the stakeholders whose human rights have been affected by its activities. The company does, however, have a grievance mechanism available to workers and external stakeholders.

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 was 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 has a policy prohibiting bribery and corruption. The company also has a lobbying and political engagement policy, which it requires third-party lobbyists to comply with and it specifies that it does not make political contributions. The company can however strengthen its disclosure on some ethical business topics including personal data protection and responsible tax practices.