Baku: SOCAR has unveiled its 2025 Sustainability Report, outlining the company's environmental, social, governance (ESG), and economic performance. The report provides transparency by disclosing sustainability indicators for SOCAR's operations in Azerbaijan and internationally, adhering to globally recognized reporting standards.
According to Azerbaijan State News Agency, the year 2025 marked a pivotal moment for SOCAR as it integrated sustainability into its corporate governance framework. A key development during this period was the company's inaugural Double Materiality Assessment, which highlighted climate change, business ethics, and pollution as the primary sustainability concerns for SOCAR. The introduction of the ESG Data Platform was another milestone, offering a unified digital solution to manage ESG data and enhance data quality, traceability, and reporting efficiency.
The report emphasizes SOCAR's strides in climate action, particularly through its Decarbonization Roadmap approved in 2025. This roadmap delineates strategies for reducing carbon and methane emissions, increasing electrification, adopting carbon capture technologies, boosting energy efficiency, and expanding renewable energy usage. Notably, SOCAR reduced greenhouse gas emissions by approximately 1 million tonnes of CO2 equivalent in Azerbaijan, largely due to the Leak Detection and Repair (LDAR) programme at the Azneft Production Union.
In sustainable finance, SOCAR achieved significant advancements by issuing USD 200 million in Green Bonds to fund renewable energy projects. The company also prioritized human capital development, launching initiatives like the Leadership Academy and Energy Leaders and Young Talents programmes. In 2025, SOCAR provided over 1 million training hours to its employees, achieving 84% employee engagement and 78% satisfaction in Azerbaijan. The SOCAR Group's social spending reached AZN 412 million for the year.
SOCAR's commitment to the local economy was evident as procurement spending on local suppliers in Azerbaijan grew from 82% to 88% in 2025. This increase underscores SOCAR's dedication to strengthening the local supply chain, supporting domestic businesses, and enhancing economic value within the country.
Overall, the report highlights SOCAR's progress in embedding sustainability into its governance, operations, and strategic decision-making. It complies with the GRI Standards, including the GRI 11: Oil and Gas Sector Standard, and has received independent assurance from the Azerbaijan branch of Ernst and Young Holdings (CIS) B.V. The report also considers the principles of the UN Global Compact, the UN Sustainable Development Goals (SDGs), the Sustainability Accounting Standards Board (SASB), and the European Sustainability Reporting Standards.