Tatneft

Tatneft is one of the only companies in the benchmark assessment to have actually committed to developing a science-based target on the Science Based Target initiative’s (SBTi’s) website. The SBTi is currently developing a target-setting approach for the oil and gas sector. If Tatneft follows through and develops its science-based target when this methodology becomes available, it will be one of the first companies to do so.

Tatneft does not have any new low-carbon business activities to replace its dependency on fossil fuels. There is no evidence it is investing in potential new revenue sources through research and development (R&D) and capital expenditure (CapEx) in low-carbon technologies or other low-carbon initiatives. The company should act on the implications of climate change for its business and develop alternative low-carbon revenue streams.

Tatneft has recently developed emissions reduction targets for 2025 and 2030. These lack detail and it is not clear whether they cover scope 3 emissions. Although Tatneft disclosed its scope 3 emissions for the first time in 2019, the company reports no strategy addressing how it intends to reduce these emissions.

Tatneft has stated targets to reduce CO2 emissions by 10% by 2025 and by 20% by 2030. Tatneft’s sustainability report is full of commitments and intentions that lack adequate detail, but there is little evidence of the company having taken any actions to date.

Tatneft’s transition plan does not contain detail on how the company intends to transition to the low-carbon economy. Its two emissions reduction targets only cover CO2, even though the company is likely to have significant methane emissions. Tatneft’s stated intentions without adequate detail will not be sufficient to decarbonise the company.

Tatneft has a number of climate initiatives, which the company reports are in progress or due to commence. There is currently no evidence to gauge whether these initiatives will be successful. The company continues to increase oil and gas production and is not investing in any low-carbon initiatives or R&D.

Tatneft has reduced absolute greenhouse gas (GHG) emissions by 5% since 2016. Its emissions reduction targets are relatively new, reported by the company only in 2018, and it has improved GHG disclosures since 2018. The company has adopted a new version of its Climate Change Environmental Policy in 2019. Nevertheless, it continues to increase its oil and gas production.

Tatneft’s disclosures display a lack of urgency which is at odds with its professed awareness of climate change issues. Its targets are not sufficiently ambitious and, moreover, are the only substantive commitment it has made to the low-carbon transition.