SOCAR

While SOCAR discusses the nationally determined contributions (NDC’s) of Azerbaijan, it has not set any company-specific targets itself. 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.

The company does not report any data on its low-carbon capital expenditure (CapEx) or research and development (R&D) spending in the reporting year or its planned spending for the next five years. SOCAR can support the deployment of low-carbon businesses by dedicating the majority of its CapEx and R&D expenditure to their development.

There is little evidence that SOCAR is developing business activities that would enable the company to decouple financial results from greenhouse gas emissions. The company is participating in a project to produce green hydrogen from renewable sources and offers electric vehicle (EV) charging at a limited number of service stations. However, it is still heavily reliant on fossil fuel products.

SOCAR has not set any emission reduction targets. The company has a low-carbon strategy for 2030, which is based on qualitative measures to reduce emissions in production. The company joined the Zero Routine Flaring by 2030 initiative and works towards this target.

SOCAR has not developed a plan to transition away from fossil fuel production. The company includes limited measures to reduce emissions such as increased energy efficiency, the introduction of environmentally friendly and new technologies, awareness-raising, leak detection and repair.

There is no evidence that SOCAR is investing in research and development of climate change mitigation and carbon removal technologies. The company does not report its CapEx spend on low-carbon technology. The company is participating in a green hydrogen project and offers EV charging at a limited number of service stations. However, it is still heavily reliant on the sale of fossil fuel products.

SOCAR’s scope 1, 2 and 3 emissions intensity was static between 2017 and 2022 and is projected to remain static between 2022 and 2027. To align with its 1.5°C pathway, SOCAR needs to decrease its scope 1, 2 and 3 emissions intensity by over 4% annually.

SOCAR has a “low-carbon development strategy” for 2030 which guides the fulfilment of SOCAR’s obligations within the framework of the NDC’s of Azerbaijan. However, it has neither set any company-specific targets nor developed a plan to invest in low-carbon business models. As such, SOCAR’s portfolio is not in line with a low-carbon transition.

No evidence was found that the company’s commits 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 that the company undertakes 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 that the company assessesemployment dislocation risks. No public commitment by the company was found stating its intention to re-skill and up-skill workers displaced by the transition to a low-carbon economy. Additionally, no evidence was found that the company re-skills 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.