Azerbaijan's SOCAR earns first-ever ESG rating from Sustainable Fitch

The State Oil Company of Azerbaijan (SOCAR) has been awarded its first-ever ESG rating by the international rating agency Sustainable Fitch, marking a significant step in the company’s sustainability reporting efforts.

SOCAR received an ESG rating of “3,” reflecting its performance across environmental, social, and governance criteria, Caliber.Az reports, citing SOCAR.

According to the company, the rating “reflects SOCAR’s stable and mature ESG indicators and demonstrates its ability to balance emission-reduction objectives with ongoing challenges related to environmental impact, diversity, and governance transparency, as well as its strong position in risk management.”

The company emphasized that its decarbonization strategy, stable social profile, and effective risk management framework were identified as key factors behind the assigned rating.

Another important consideration that positively influenced the assessment was SOCAR’s continued integration into international ESG reporting standards. The rating, issued by Fitch International, underscores the company’s progress in sustainable development and the alignment of its long-term strategic goals with the expectations of global investors.

Sustainable Fitch Ratings evaluate the degree to which environmental and social factors are embedded in an organization’s business model, strategy, and governance, as well as its overall performance, commitments, and management effectiveness. Ratings range from “1” to “5,” with “1” indicating the highest level of performance and “5” the lowest.

By Vafa Guliyeva