SOCAR cut 1 million tonnes of emissions in 2025

SOCAR has published its 2025 Sustainability Report, outlining the company’s environmental, social, governance (ESG) and economic performance across its operations in Azerbaijan and key international activities.

The report says 2025 marked an important step in integrating sustainability into SOCAR’s corporate governance.

During the year, the company conducted its first Double Materiality Assessment, identifying climate change, business ethics and pollution as its most significant sustainability topics. SOCAR also launched an ESG Data Platform to improve the management, traceability and quality of sustainability data.

Climate action featured prominently in the report. SOCAR’s Decarbonisation Roadmap, approved in 2025, sets out measures to reduce carbon and methane emissions, expand electrification, deploy carbon-capture technologies, improve energy efficiency and increase the use of renewable energy.

According to the report, SOCAR reduced approximately 1 million tonnes of CO₂-equivalent greenhouse gas emissions across its operations in Azerbaijan during the reporting year. The reduction was achieved primarily through the implementation of the Leak Detection and Repair (LDAR) programme at SOCAR’s Azneft Production Union.

The company also reported progress in sustainable finance, including the issuance of $200 million in Green Bonds to support renewable energy projects.

Human capital development remained another key area. SOCAR implemented initiatives including the Leadership Academy, Energy Leaders and Young Talents programmes, while more than 1 million training hours were delivered across the SOCAR Group. Employee engagement in Azerbaijan reached 84%, while employee satisfaction stood at 78%. The group’s social expenditure totalled AZN 412 million in 2025.

SOCAR also increased its reliance on local suppliers in Azerbaijan. The share of procurement spending directed to local suppliers rose from 82% to 88%, which the company said reflected its continued efforts to strengthen domestic supply chains and support local businesses.

Overall, the report highlights SOCAR’s progress in incorporating sustainability into its governance, operations and strategic decision-making.

The report was prepared in accordance with the GRI Standards, including the GRI 11: Oil and Gas Sector Standard, and independently assured by the Azerbaijan branch of Ernst & Young Holdings (CIS) B.V. It also takes into account the principles of the UN Global Compact, the UN Sustainable Development Goals, the Sustainability Accounting Standards Board and the European Sustainability Reporting Standards.

By Aghakazim Guliyev