Sonangol

Sonangol has not set any emissions reduction targets and does not disclose 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.

Sonangol’s scope 1, 2 and 3 emissions intensity remained static between 2017 and 2022 and is projected to remain static until 2027. However, to align with its 1.5°C pathway the company needs to reduce its scope 1, 2 and 3 emissions intensity by at least 4% annually. Also, the company does not disclose its expected revenue over the next 5 years, and more importantly, the share of revenues it expects to originate from low-carbon products. Reporting this information would allow the company to demonstrate its financial commitment to transitioning to a low-carbon future.

There is no evidence that Sonangol has a low-carbon transition plan. 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.

Sonangol has plans to develop solar plant projects with a total capacity of 80 megawatts (MW) by 2027. These are joint ventures between Sonangol, Eni and Total. The business model is in its initial planning phases and thus is not yet profitable. To improve, the company should commit to significantly expand its renewable energy capacity, with short-, medium- and long-term targets. To establish the credibility of such plans Sonangol should also seek to report the business model’s profitability, current size, growth potential and deployment schedule.

Sonangol 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 aims to grow its exploration and production and refining and petrochemicals businesses.

Sonangol does not have a transition plan. It reports plans for 80MW of solar PV by 2027, which is aligned with national renewable energy targets. The company does not disclose long-term actions or an overarching vision for transition.

In 2021, the company created a research and development centre. The company reports that the centre will focus on “renewable energies, such as green hydrogen, biofuels and strategic minerals of the future”. Sonangol does not disclose its investment in low-carbon research and development. The company also does not disclose its low-carbon capital expenditure (CapEx).

Sonangol’s scope 1, 2 and 3 emissions intensity remained static between 2017 and 2022 and is projected to remain static until 2027. To align with its 1.5°C pathway it needs to reduce its scope 1, 2 and 3 emissions intensity by approximately 4% annually.

The company’s lack of targets and long-term strategy suggests that the company is not committed to the low-carbon transition. The company is developing solar energy, but this is comparatively very small. The company has not committed to stop oil and gas exploration and expansion, instead it discloses plans for their growth.

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.