Surgutneftegas

Surgutneftegas OAO 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.

Surgutneftegas’s scope 1 and 2 emissions intensity was static between 2017 and 2022 and is projected to remain static until 2027. This contrasts with the company’s 1.5°C pathway which requires it to reduce its scope 1 and 2 emissions intensity by nearly 11% annually. Furthermore, the company has not committed to stop oil and gas exploration and expansion. This does not align with the International Energy Agency’s (IEA) 1.5C Net-Zero Emissions by 2050 (NZE) scenario, which does not allow for any expansion of producing assets beyond those sanctioned earlier than 2022.

The company has neither developed a low-carbon transition plan nor set any emission reduction targets. 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.

There is no evidence that Surgutneftegas is developing business activities that would enable the company to decouple financial results from greenhouse gas emissions.

Surgutneftegas OAO has not set any emission reduction targets. The company has not developed a vision of what its business will look like in a low-carbon future. The company continues to seek to expand its oil and gas business.

Surgutneftegas OAO does not have a low-carbon transition plan. The company displays limited plans to reduce its emissions through reduced flaring, improved energy efficiency, and introduction of renewable energy sources in operations.

There is no evidence that Surgutneftegas OAO is investing in research and development (R&D) of climate change mitigation and carbon removal technologies. The company does not report its capital expenditure (CapEx) spend on low-carbon technology. There is also no evidence that the company is developing new business models for a low-carbon future.

Surgutneftegas’s scope 1, 2 and 3 emissions intensity was stagnant between 2017 and 2022 and is projected to remain stagnant between 2022 and 2027. To align with its 1.5°C pathway, the company needs to decrease its scope 1 and 2 emissions intensity by nearly 11% annually and scope 1, 2 and 3 emissions intensity by over 4% annually.

Surgutneftegas OAO shows very limited efforts to reduce its emissions. The company’s lack of targets and strategy suggests that it is not committed to the low-carbon transition. The company has not committed to stop oil and gas exploration and expansion.

No evidence was found that the company 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 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.

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 that the company actions 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. The company discloses the actions it takes to provide upskilling and trainingopportunities for workers and affected stakeholders. For instance, the company has organized vocational training, retraining and advanced training of its employees at in-house training centers: the Polytechnic Training Center and Center of Vocational Training and Retraining of LLC “KINEF” as well as in the best Russian and foreign training institutions. In the reporting year, more than 80% of the total number of employees were trained in the corporate training centers 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.

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, 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. The company does however, have a statement against bribery and corruption.