Sonatrach

Sonatrach has not set any decarbonisation targets. The company should set long-term emissions reduction targets for its scope 1, 2 and 3 emissions and intermediate targets at gaps of no more than five years between the reporting year and its furthest target end date. Setting regularly spaced intermediate targets incentivises near-term actions on/towards its longer-term goals.

The share of gas in Sonatrach’s sold product mix increased between 2017 and 2021, leading to a marginal decline in the company’s scope 1, 2 and 3 emissions intensity trend. However, this rate of change is still far below the rate required by the company’s 1.5°C pathway. The company needs to reduce scope 1, 2 and 3 emissions intensity by about 4% annually to be aligned with its 1.5°C pathway.

Sonatrach does not have a low-carbon transition plan but has detailed some relevant information related to a low-carbon transition. The company lacks climate change governance and does not offer executive renumeration for achievement towards climate related targets. The company should look to establish a time-bound transition plan with sufficient intermediate emissions reduction targets that is informed by climate change scenario analysis.

Sonatrach is in the early stages of developing a renewable energy portfolio, with plans to reach 1.3 gigawatts (GW) of renewable capacity by 2030. The company plans to use electricity generated from renewables to power its oil sites. The company in 2021 has announced an additional 10 megawatt (MW) solar project in partnership with ENI. Sonatrach is exploring opportunities in hydrogen production from renewable sources and biorefining. However, there is a lack of information available about these business models. The company should significantly increase its ambition to transition to low-carbon business models and scale up its renewables activities to reduce dependency on high carbon activities.

Sonatrach has not set any emissions reduction targets. However, the company has committed to ensure that 80% of its energy consumption across its oil sites is supplied through solar power and is aiming to increase solar power production capacity to 1.3 GW by 2030.

Sonatrach does not have a clearly defined low-carbon transition plan or deployment schedule for its renewables activities to achieve its goal. The company lacks climate change governance and does not conduct scenario testing of its existing business model.

Sonatrach’s main business activities continue to rely on fossil fuels, which constituted 100% of its sold products in 2021. The company have announced plans for a 10 MW solar plant at Bir Rebaa North Refinery in partnership with ENI and are maintaining their aim to establish a 1.3 GW renewables capacity by 2030.

Sonatrach’s fuel mix remained relatively unchanged between 2017 and 2021, meaning there was only a marginal decline in the company’s scope 1 and 2 emissions intensity. The share of gas in its sold product mix increased during the same period, leading to a marginal decline in its scope 1, 2 and 3 emissions intensity. The company is projected to exceed its carbon budget by over 10% between 2022 and 2050.

Apart from its renewable energy target, and statements that the company is exploring opportunities in hydrogen production from renewable sources and biorefining, there are no other signs that Sonatrach is preparing for the low-carbon transition. The company lacks a climate-related strategy and governance, and its main business activities continue to rely on oil and gas. The company needs to make significant strategic changes to align with its 1.5°C pathway.

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’s assesses 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.