Tatneft

Tatneft OAO has set a long-term target to achieve zero scope 1 and 2 emissions by 2050. The company has also set several interim scope 1 and 2 emissions intensity reduction targets; it aims to reduce its upstream and midstream emissions intensity by 14% by 2025, compared to 2021 and downstream emissions intensity by 2% by 2025, also compared to 2021. The company’s targets do not include scope 3 emissions. The company disclosed its scope 3 emissions from the use of sold products for the first time in 2019, Tatneft does not disclose a strategy on how it plans to reduce these emissions.

Although Tatneft OAO has implemented board-level oversight of climate change, there is no evidence that its board has adequate climate expertise. A lack of expertise at board or equivalent, can be a barrier to the successful management of low-carbon transition. Tatneft has developed a transition plan which outlines the company’s intentions to address its scope 1 and 2 emissions. However, the plan lacks financial content and, critically, actions to tackle its scope 3 emissions. The company has conducted scenario analysis, it should improve by using it to inform a strategy that addresses all of its emissions.

Tatneft OAO has identified business activities that, if scaled up, should enable the company to decouple financial results from greenhouse gas emissions. The company plans to expand its business in EV charging, which currently includes 15 filling stations, equipped with multi-standard fast charging. Tatneft also plans to increase its renewable capacity, using clean energy to produce more sustainable and lower carbon fuels such as renewable hydrogen, and completing assessments to establish the wind and solar potential of its territory of operation. The company can improve by disclosing the profitability, current size, growth potential and deployment schedules of these new business models.

Tatneft OAO aims to achieve zero scope 1 and 2 emissions by 2050. Tatneft have introduced new emissions intensity reduction targets for scope 1 and 2 emissions of 14% for both upstream and midstream activities and 2% for downstream activities by 2025 compared to 2021. The company’s targets do not cover its methane or scope 3 emissions. The company stated they plan to use offsets to achieve their 2050 scope 1 and 2 emissions target, however, it is unclear what percentage of the target will be achieved through these offsets.

Tatneft’s transition plan outlines the company’s long-term goal of reducing their emissions through increasing energy efficiency, establishing renewable energy capacity in wind and solar, using this energy to produce more sustainable fuels such as renewable hydrogen, and investment into biofuels. The company has not set a scope 3 emissions reduction target.

In 2021, Tatneft OAO invested USD 160,000 in research and development (R&D) into low-carbon mitigation technologies, towards establishing the potential of wind and solar across its operations. There is currently no evidence to gauge whether these initiatives will be successful. The company continues to invest in the exploration and production of oil and gas. Tatneft is focused on increasing the energy efficiency of production to reach lower-carbon intensities, rather than reducing its absolute GHG emissions.

Between 2019 and 2021, Tatneft’s scope 1 and 2 emissions intensity increased. To align with its 1.5°C pathway, Tatneft OAO needs to decrease its scope 1 and 2 emissions intensity by about 8% annually. Over the same timeframe, the company’s scope 1, 2 and 3 emissions intensity also increased. To align with its 1.5°C pathway it needs to reduce its scope 1, 2 and 3 emissions intensity by 4% annually. Tatneft’s locked-in emissions are projected to exceed its scope 3 carbon budget by over 20% between 2022 and 2050.

Tatneft’s transition plan and its target to achieve zero scope 1 and 2 emissions by 2050 is undermined by a lack of disclosure and lack of low-carbon business models. The company’s reporting lacks an urgency to transform its core business model to prepare for a low-carbon transition. The company has not reported on scope 3 targets. Tatneft’s emissions for all scopes since 2019 have also continued to increase annually.

The company publicly discloses a commitment to engaging in social dialogue with workers and unions. However, no relevant disclosure was found regarding the categories of stakeholders it engages with on a just transition. Nor was there any evidence to show 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.

The company commits to respecting human rights and the ILO fundamental rights at work, and it expects its business relationships to respect the ILO fundamental rights at work. The company also has a process to identify, assess and mitigate human rights risks in its specific locations where it operates. However, no evidence was found that the company discloses the stakeholders whose human rights have been affected by its activities. The company does, however, have a grievance mechanism available to workers and external stakeholders.

The company commits to respecting the health and safety of its workers and expects the same commitment of its business relationships. However, no evidence was found of a time-bound target for paying all workers a living wage. While the company discloses the proportion of its direct workforce covered by collective bargaining agreements, no relevant disclosure was found of the company’s required working hours. The company discloses some indicators of workforce diversity, including by age and gender. However, no relevant disclosure was found of additional indicators of workforce diversity. Moreover, there is no evidence that the company commits to gender equality and women’s empowerment.

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 policy statement prohibiting bribery and corruption.