The urgent need to mitigate the consequences of climate change is compelling everyone, including companies, to take serious measures on a global scale, said Ziba Mustafayeva, Vice President of the State Oil Company of Azerbaijan (SOCAR), Report informs.
The vice president shared this insight during the high-level inter-regional South-South political dialogue event themed "From Theory to Practice for a Just Transition for All," held within the framework of COP29.
Mustafayeva stated that SOCAR is committed to taking decisive steps towards a green future: "As a company, we have embarked on an energy transition and transformation journey. SOCAR is a national oil and gas company operating at all stages of the oil and gas chain. However, our goal is to become a national energy company with a diversified portfolio consisting of both hydrocarbon and low-carbon energy sources, and an emission profile that is competitive with global energy leaders by 2035."
She added that SOCAR aims to achieve net-zero carbon emissions by 2050, and specific phases and targets have been set to reach this goal. "By 2030, we plan to completely eliminate routine gas flaring, reduce corporate and absolute emissions by 20-30% by 2035, approach zero methane emissions, and transform into a zero-emission national energy company contributing to global energy security and climate sustainability by 2050," the vice president noted.
Mustafayeva explained that SOCAR's transformation strategy is built on three main directions. The first direction involves reducing emissions and achieving environmental sustainability through corporate decarbonization measures. The second direction focuses on developing low-carbon businesses, including solar, wind, geothermal energy, green hydrogen, and sustainable fuels. Finally, the third direction entails implementing a new operating model.
"In 2023, the company established a new structure encompassing energy transition, environment, and decarbonization. This is not just about creating an independent division but also ensuring the integration of these efforts into all of the company's activities," she added.
"We are changing the DNA of the company. To support these changes, we need to update our operating model, carry out reforms in the value chain and structure, and simultaneously enhance the skills of our workforce," Mustafayeva highlighted.
According to the vice president, SOCAR has defined key performance indicators within the framework of the new model and has integrated these indicators into the company's management and motivation systems. "This approach enables us to achieve our targets in all areas of the company," she concluded.