Viva Energy

Viva has set emissions reduction targets since the previous benchmark assessment. Against a baseline of 2019, Viva plans to achieve: zero group scope 1 and 2 emissions by 2050, zero non-refining scope 1 and 2 emissions by 2030, and a 10% reduction in scope 1 and 2 intensity for the Geelong refinery by 2030. However, it has not set targets that cover its scope 3 emissions, nor a net-zero target. The company also has not set sufficient intermediate targets. Setting intermediate targets, no more than five years apart will help the company incentivise near-term actions on its long-term goals.

There is no evidence that Viva has developed a complete low-carbon transition plan. However, the company has set some targets, is developing low-carbon business models and is researching non-mature climate change mitigation technologies. The company should establish a time-bound action plan that outlines how it will transition to a low-carbon economy. The plan should include medium- and long-term targets, verifiable and quantifiable key performance indicators and financial commitments. It should also be informed by climate scenario analysis to ensure that the company’s decarbonisation ambition is sufficient to align with a 1.5°C pathway.

Viva has begun to develop some low-carbon business activities, but it does not disclose their profitability or long-term development. Currently, the company has six electric vehicle (EV) charging points, and it is planning the development of a refuelling station for hydrogen developed from renewables. It also develops biofuels, but without the company disclosing feedstock information it is not possible to determine if these are low-carbon fuels. To improve its credibility, the company should improve its disclosure and strategy in relation to the profitability, current size, growth potential and deployment schedule of these low-carbon activities.

Viva is committing to producing green hydrogen – hydrogen generated using renewable energy. It plans to construct the first green hydrogen production and distribution station in Australia to be completed in 2023. This will power seven heavy vehicles, with capacity for up to 15 vehicles. However, the company has also committed to setting up a new gas plant, which is currently awaiting planning approval. The company has set three emissions reduction targets for scope 1 and 2 emissions, but it has not set scope 3 or net-zero emissions targets.

Viva has an incomplete transition plan. The company is exploring expanding its current biofuels activity with fuels made from bio- and waste feedstocks. It is also planning to reduce its operational emissions through energy efficiency measures at its Geelong refinery. However, Viva views fossil gas as a transition fuel and is planning the development of a new floating gas terminal and then offsetting scope 1 and 2 emissions from its construction and use. The company does not consider its scope 3 emissions and does not show signs of strategically realigning its business model for a low-carbon future.

Viva has invested USD 4 million into its green hydrogen production and fuelling station, but it does not report any further planned investments into low-carbon technologies. The company is developing some new business models, such as expanding electric vehicle (EV) charging points to more locations, but the number of such initiatives remains negligible.

Viva has historically focused on improving energy efficiency, but it has yet to carry out any high-impact actions in this regard. The company saw only minor emissions reductions from improvements to energy efficiency in 2022. The company’s scope 1 and 2 emissions intensity has increased between 2019 and 2022, and its scope 1, 2 and 3 emissions intensity has remained static in the same period. This is in contrast with the company’s 1.5°C pathway, which requires it to reduce its expected scope 1 and 2 emissions intensity by 7% and scope 1, 2 and 3 emissions intensity by 4% per year.

Viva is not prepared for the low-carbon transition. The company is signalling an intention to explore new low-carbon business models, but it does not give any indication of shifting its core business model away from fossil fuels. In 2023, it is seeking permission to build a new floating gas terminal to allow for greater gas imports to Australia. The company has an incomplete transition plan and lacks scope 3 emissions targets, a net-zero target and long-term scope 1 and 2 emissions targets. The company requires a significant strategic and business model shift to align with its 1.5°C pathway.

The company commits to engaging in social dialogue with workers and unions. It also discloses the categories of stakeholders it engages with on a just transition, including governments, employee representative bodies, local communities, customers and suppliers. However, 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 just transition planning.

The company has a commitment to create and support access to green and decent jobs as part of the low-carbon transition. Furthermore, it discloses the actions it takes to create jobs, including the establishment of an energy hub. However, no evidence was found of the company’s actions to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Moreover, no relevant disclosure was found of the company’s assessment of employment dislocation risks. The company has a commitment to re- and up-skill workers and stakeholders affected by the low-carbon transition and discloses the actions it takes in this regard. For instance, it provides training for staff as well as educational and internship programmes for local communities and First Nations peoples. However, no relevant disclosure was found of the company embedding equality of opportunity for women and vulnerable groups in these actions. Furthermore, no relevant disclosure was found of a process for identifying skills gaps for workers and affected stakeholders in the context of the transition.

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. However, no evidence was found of the company’s process to identify, assess and mitigate salient human rights risks in its own operations and in its supply chain. Moreover, no evidence was found of the company disclosing 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 the company having a time-bound target for paying all workers a living wage. The company discloses the share of its workforce covered by collective bargaining agreements as well as some information about the diversity of its workforce. However, the company can strengthen its disclosure on these subjects as well as on working hour practices.

The company commits to protecting personal data. However, no evidence was found of the company having a privacy statement regarding the collection, sharing and access to personal data. The company does disclose the corporate income tax it pays in each relevant jurisdiction, but it does not disclose a global tax strategy. The company has a policy prohibiting bribery and corruption, and it includes corresponding clauses in its business relationship contracts. Furthermore, the company has a lobbying and political engagement policy, and it specifies that it does not make political contributions. Yet, no relevant disclosure was found of the company’s expenditure on lobbying activities.