Saras

Saras sets rolling targets year-on-year for the emissions intensity of its refining however these targets are not disclosed until after the target year, which makes it difficult to scrutinise the ambition of the company. Saras also does not have any medium or long-term targets and has not set any targets for its scope 3 emissions. 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.

There is no evidence that Saras has a low-carbon transition plan. The company includes some details of actions it plans to take in the short term to reduce emissions, however the plans lack long-term details and commitments. 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. The plan should be informed by scenario analysis to ensure that the plan’s ambition is sufficient for a 1.5°C pathway.

Saras is expanding its renewable energy capacity with investments in wind and solar capacity. The company currently has 171 megawatts (MW) of renewable capacity with plans to add a further 400 MW by 2026. The company is making significant investments into this business segment with almost 18% of capital expenditure (CapEx) spent on renewables in 2022 and plans to spend 26% in 2023. However, this investment falls short of the sectoral expectations for CapEx spend and the company’s renewable production for 2022 represented less than 1% of the company’s total energy production.

Saras does not have any medium or long-term emissions reduction target and has not committed to net-zero emissions.

The company has not developed a transition plan. Although the company plans to expand its supply of low-carbon energy from renewables, second generation biofuels and hydrogen from renewable sources, the company does not have a plan to transition away from fossil fuels. It is not clear how the company plans to operate in a low-carbon economy.

The company is investing in increasing its renewable capacity with plans to more than double its capacity by 2026 and is producing biofuels using hydrogenated vegetable oil (HVO). The company is also planning to produce hydrogen from renewable sources to power its refinery and is exploring possible applications for carbon capture and storage (CCS) technologies. The company does not have a strategy to engage its suppliers to encourage them to reduce emissions or publicly report their emissions.

The company has reduced its scope 1 and 2 emissions intensity for its refining operations by almost 10% over the last five years. However, in order to align with its 1.5°C pathway the company will need to reduce its emissions by almost 28% over the next five years. There is no evidence of the company having made significant reductions in its scope 1, 2 and 3 emissions intensity over the last five years.

Saras has some low-carbon business models and is investing significantly in the expansion of its renewable capacity. However, even with the company’s planned expansion renewable electricity will make up less than 1% of the company’s total energy production. The company has biofuel production but does not disclose plans to reduce its fossil fuel production and to transition away from its carbon intensive core business.

The company publicly discloses a commitment to engaging in social dialogue with workers and unions. However, no relevant disclosure was found regarding the categories of stakeholders it engages with on a just transition. Nor was there any evidence to show 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. However, no evidence was found of the company’s actions to create these jobs or ensure that the company acts to promote these jobs in a way that ensures gender balance and the 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 offers a learning platform for staff and programs for vocational guidance. 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 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. The company also discloses some information about the diversity of its workforce. However, the company can strengthen its disclosure on these subjects as well as on its living wage and working hours practices.

The company has a policy prohibiting bribery and corruption and includes corresponding clauses in its contracts with business relationships. Additionally, the company states that it does not make political contributions. However, the company can strengthen its disclosure on these topics as well as on other ethical business topics including personal data protection and responsible tax practices.