Türkiye Petrol Rafinerileri

Tüpraş has improved its target setting since the last (2021) assessment. The company now has targets to reduce scope 1 and 2 emissions by 27%, 35%, and 49% by 2030, 2035 and 2040 respectively compared to 2017. It is unclear if the company will use offsets to reach these targets. The company aims to achieve zero scope 1 and 2 emissions by 2050. It is unclear if Tüpraş will use offsets to achieve this target. Reducing emissions related to its operations and products should remain the company’s priority. Furthermore, the company should disclose the proportion of each target that will be met through direct action, rather than offsets. Tüpraş should develop a long-term target that aligns with its 1.5°C pathway and covers its scope 3 emissions as well as its scope 1 and 2 emissions.

Tüpraş aims to invest 17% of its overall capital expenditure (CapEx) in second-generation biofuels and renewable hydrogen over the next five years. Tüpraş can improve its performance on material investment by disclosing its current CapEx share allocated to low-carbon technologies including carbon removal technologies as well.

Tüpraş has plans to produce low-carbon second-generation biofuels and renewable hydrogen. However, the company performs poorly on intangible investment because it does not disclose its research and development (R&D) spending for low-carbon technologies in the reporting year. The disclosure of low-carbon, mitigation and carbon removal technologies coupled with total R&D expenditures allows companies to align their R&D expenditures with the sector decarbonisation pathway.

Tüpraş has developed a low-carbon transition plan, including zero scope 1 and 2 emissions by 2050 target. It is unclear if Tüpraş will use offsets to achieve this target. The company’s transition plan includes low-carbon CapEx for low-carbon activities such as second-generation biofuels and renewable hydrogen for the next five years. However, it does not have a review, update or progress reporting process for its transition plan. Tüpraş did not conduct a climate scenario analysis to inform its transition plan and ensure the plan’s ambition is sufficient for a 1.5°C pathway. It can improve by conducting a scenario analysis to inform its transition plan.

Tüpraş has targets to reduce scope 1 and 2 emissions by 27%, 35%, and 49% by 2030, 2035 and 2040 respectively compared to 2017. It is unclear if the company will use offsets to reach these targets. The company aims to achieve zero scope 1 and 2 emissions by 2050. It is unclear if Tüpraş will use offsets to achieve this target. The company lacks a scope 3 target, a net-zero target and any targets covering scope 1, 2 and 3 emissions. 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.

Tüpraş is planning to transition by exploring green hydrogen and second-generation biofuels. It plans to generate 400 megawatts (MW) of renewable hydrogen by 2030 and 1 gigawatt (GW) by 2035. It also plans to produce 400 thousand tons per year of second-generation biofuels and ensure 10% of its jet fuel sales are sustainable aviation fuel by 2030. Yet, its second-generation biofuel plan is a minimal share compared to its core activities. Tüpraş has not yet committed to phasing out fossil fuels and it is unclear if the company will use offsets to reach its targets.

Tüpraş is focusing on energy efficiency and optimisation of its own operations. It does not report R&D spend for low–carbon technologies or low-carbon CapEx. The company reports plans to invest 17% of its total CapEx to second-generation biofuels and renewable hydrogen activities per year for the next five years. This is significantly lower than the sectoral expectation. There is evidence that the company is attempting to develop low-carbon business models such as renewable hydrogen and second-generation biofuels. Yet, the company discloses little information on the current state of these projects in terms of profitability and size.

Between 2017 and 2021, the company’s scope 1 and 2 emissions intensity decreased slightly. It is required to annually decrease its scope 1 and 2 emissions intensity by nearly 6% to align with its 1.5°C pathway. Its scope 1, 2 and 3 emissions intensity has remained constant and is projected to remain constant in the future. To align with its 1.5°C pathway it needs to annually decrease its scope 1, 2 and 3 emissions intensity by over 4%.

While Tüpraş plans to invest 17% of its total CapEx in low-carbon activities for the next five years, it lacks disclosure for 2022. Its transition plan is undermined by its lack of a scope 3 target, scenario testing and R&D spend disclosure. This in conjunction with the undefined use of offsets to reach its targets signifies that the company is not prepared for the low-carbon transition. A significant strategic and business model shift will be required to align with its 1.5°C pathway.

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 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 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. The company discloses the actions it takes to provide training and educational opportunities for workers and affected stakeholders. For instance, it provides internship and student educational programs, as well as training for its staff. 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.

The company commits to respecting human rights and the International Labour Organisation (ILO) fundamental rights at work, and it expects its business relationships to respect the ILO fundamental rights at work. However, no evidence was found of the company’s process to identify, assess and mitigate salient human rights risks in its own operations and supply chain. Moreover, no evidence was found of the company disclosing 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. Additionally, the company commits to women’s empowerment and discloses the gender of its workforce. However, the company can strengthen its disclosure on these subjects as well as on its living wage and working hours practices.

The company has a policy prohibiting bribery and corruption, and includes corresponding clauses in its contracts with business relationships. Additionally, its states that it does not make political contributions. However, the company can strengthen its disclosure on these and other ethical business topics including personal data protection and lobbying.