Reliance Industries

Reliance is aiming for a 100% reduction in its scope 1 and scope 2 emissions by 2035. However, Reliance does not have any emissions reduction targets for its scope 3 emissions. To align with a low-carbon future, Reliance will need to commit to a scope 3 emissions target. Furthermore, Reliance lacks any intermediate targets to reduce its scope 1 and 2 and scope 1, 2 and 3 emissions in the short- and mid-term. To demonstrate commitment to the low-carbon transition and hold itself accountable to achieve its net-zero ambition by 2035, Reliance should set regularly spaced intermediate targets at five-year intervals and align its targets with its 1.5°C pathway.

Reliance has not committed to stopping oil and gas exploration and expansion and is focusing on developing its current oil and gas reserves. This does not align with the International Energy Agency (IEA) Net Zero by 2050 emissions (NZE) scenario, which does not allow for any expansion of producing assets beyond those sanctioned earlier than 2022. However, Reliance’s recent acquisitions of two renewable energy companies indicates some intention to further its share of renewable energy projects.

Reliance is currently investing in the development of green bio-crude using hydrothermal liquefaction technology (HTL) to help achieve the company’s net-zero goal. At a large pilot facility near its Jamnagar refinery, HTL technology is used to convert algae to renewable bio-crude. Biofuels generated using these technologies have been successfully tested in commercial engines and Reliance claims the technology is ready for commercialisation. However, the company’s dependence on the readiness of biotechnology, presents a significant risk to its climate transition given concerns of the feasibility and scalability of this technology.

Reliance is planning on becoming a net-zero company by 2035 across its scope 1 and 2 emissions. To achieve this, Reliance plans to shift from an oil-to-transportation fuel business to an oil-to-chemical (O2C) business and is aiming to maximise its use of biofuels. The company also plans to invest in electric vehicle (EV) charging and renewable energy, particularly its solar capacity, which it plans on increasing to 100 gigawatts (GW) of capacity by 2030. This accounts for at least 20% of India’s national target.

Reliance Industries has elements of transition planning. However, no short-term targets or detailed goals have been identified and there is no evidence the plan applies to its scope 3 emissions. The company does not state aims to reduce its upstream activities. However, reliance’s O2C net-zero plan details the company’s strategic objectives to invest in carbon capture and storage (CCS) technologies. The company recently stated a commitment to invest USD 10 billion in low-carbon energy generation over the next three years from 2021.

Reliance Industries does not currently have any profitable low-carbon business models. However, various low-carbon energy projects are in early stages of development. At present, the company is researching the potential use of CCS at its Jamnagar refinery and is operating a pilot facility to produce bio-crude. However, there is no suggestion Reliance is planning to reduce its current upstream operations. Reliance has outlined its desire to become India’s top player across the gas value chain.

Reliance has committed USD 8 billion to build four gigafactories to produce solar cells and modules, energy storage batteries, fuel cells and green hydrogen made from renewable sources. The first development began this year at the Jamnagar Refinery, which will become one of the largest integrated renewable energy manufacturing facilities in the world. However, Reliance’s commissioning of new gas fields in recent years has led to increased gas production, with the company now contributing 20% of India’s domestic production.

While Reliance is planning on becoming net-zero by 2035, this target does not include its scope 3 emissions. The company has outlined its intention to use offsets to reach its climate goals. Despite its recent commitment to invest USD 10 billion in low-carbon energy between 2021 and 2024, the company does not report any capital expenditure or research and development expenditure towards low-carbon technologies. Reliance also recently ended its membership of the Oil and Gas Climate Initiative (OGCI), after only one year of membership.

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 has a commitment to create and support access to green and decent jobs as part of the low-carbon transition. Furthermore, it discloses the actions it takes to create jobs that embed equality of opportunity for women and vulnerable groups. It does this through employment programs for differently abled young people, and efforts to help women into managerial positions. However, 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 offers a career acceleration program. 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 programs to help women with developing entrepreneurial skills, and particular training and skill upgrading efforts for disabled employees. 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.

The company has a grievance mechanism where human rights concerns can be reported, which is available to workers and external stakeholders. 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. 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 commits to respecting personal data. Furthermore, 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 orethical business conduct throughout its operations and in its relationships with business partners.