Abu Dhabi National Oil Company

ADNOC aims to become net zero by 2050, in line with the United Arab Emirates (UAE) net zero by 2050 strategic initiative. However, this target does not cover its scope 3 emissions. Furthermore, ADNOC lacks any intermediate targets to reduce its scope 1, 2 and 3 emissions in the short- and medium-term. To demonstrate commitment to the low-carbon transition, ADNOC needs to begin reporting its scope 1, 2 and 3 emissions, commit to a climate target that covers its scope 3 emissions and set intermediate emissions reduction targets no more than five years apart.

ADNOC is headed towards exceeding its 1.5°C carbon budget by over 80% between 2022 and 2050. ADNOC is projected to continue to increase its oil and gas production between 2022 and 2030. As such the company’s scope 3 emissions linked to the combustion of its sold oil and gas products are expected to increase in the coming decade. The company is still exploring for new fossil sources and has not committed to any phase-out of oil and gas. This does not align with the International Energy Agency (IEA) Net Zero Emissions by 2050 (NZE) Scenario, which does not allow for any expansion of producing assets beyond those sanctioned earlier than 2022.

There is no evidence that ADNOC engages with its customers on climate change issues to target emissions reductions. To reduce its scope 3 emissions, ADNOC should set out a clear strategy to promote its low-carbon solutions to customers.

ADNOC does not have a policy in place to monitor and review its engagement with trade associations. ADNOC is a member of the International Association of Oil & Gas Producers (IOGP). However, it is not clear if ADNOC supports the IOGP beyond a standard membership.

ADNOC has committed to investing USD 15 billion towards decarbonisation technologies, including green hydrogen from renewable sources and carbon capture and storage (CCS). However, there is evidence to suggest ADNOC intends to use CCS technology for enhanced oil recovery, as such increasing the quantities of oil produced. This will limit its ability to transition towards a low-carbon economy. Although ADNOC is planning on increasing its green hydrogen production capacity to 1 million tonnes by 2030, the company’s dependence on the readiness of green hydrogen presents a significant risk to its transition given concerns of the feasibility and scalability of this technology.

ADNOC is targeting an increase in its CCS capacity by 500%, from 500,000 tonnes per year to 5 million tonnes per year by 2030. However, as it intends to use CCS for enhanced oil recovery, this is not recognised as a valid carbon storage technology for a company trying to transition to a low-carbon future. ADNOC has committed to becoming a net-zero energy business by 2050. However, this target does not include its scope 3 emissions. ADNOC is aiming to reduce its scope 1 and 2 emission intensity by 25% by 2030. However, it does not report a base year linked to this target.

ADNOC has developed a 2030 sustainability agenda which includes its 2030 emissions intensity reduction target. However, its plan contains no short- or mid-term absolute emissions reduction targets. The company’s plan also contains no financial information, and it does not make use of climate scenario analysis to assess the resilience of the company’s business plans.

ADNOC recently announced its planned allocation of USD 15 billion by 2030 towards decarbonisation projects, including green hydrogen, renewables and carbon dioxide removal technologies. However, in 2022, ADNOC also announced a USD 150 billion investment over five years to enable an “accelerated growth strategy” for oil and gas production. ADNOC currently produces around 4.5 million barrels of oil per day and 11.5 billion cubic feet of natural gas per day. In its current state, ADNOC’s business model is entirely reliant on fossil-fuel activities.

ADNOC became a member of the Zero Routine Flaring by 2030 and Climate and Clean Air Coalition’s Oil and Gas Methane Partnership initiatives. ADNOC’s upstream scope 1, 2 and 3 emissions intensity has remained stable between 2017 and 2021. However, as the company does not report any midstream oil refining data, this could not be assessed and is not represented in this figure. ADNOC has not committed to stopping oil and gas exploration and expansion. The IEA NZE by 2050 Scenario requires no new oil and gas projects to be approved after 2022, but 90% of the oil and gas expansion being planned by ADNOC was advanced after this date.

ADNOC supports the UAE Net Zero by 2050 strategic initiative, but it does not have a monitoring and review process to ensure its policy positions are consistent with the goals of the Paris Agreement. Despite having emissions intensity reduction targets, ADNOC does not currently report any emissions data. While ADNOC is planning on increasing its green hydrogen production capacity by 2030, it is also planning on and heavily investing in increasing its oil and gas output between 2022 and 2050.

No evidence was found of the company’s commitment to social dialogue or of the categories of stakeholders the company engages with on a just transition. Furthermore, 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 discloses the actions it takes to create jobs, such as initiating programmes specifically for local jobs. However, no public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s action to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks. The company discloses the actions it takes to provide training and educational opportunities for workers and affected stakeholders. For instance, it provides education both to staff and local youth. However, no relevant disclosure was found of the company embedding equality of opportunity for women and vulnerable groups in these actions. Furthermore, no evidence was found of the company having a process for identifying skills gaps for workers and affected stakeholders or a public commitment to help workers displaced by the transition to re-skill or up-skill.

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.

No policies or commitments of the company related to respect for human rights were found in the public domain. This includes the necessary policies and systems by which the company can ensure respect for basic human rights in its operations and supply chain.

The company commits to respecting the health and safety of its workers and expects the same commitment of its business relationships. Additionally, the company commits to gender equality and women’s empowerment. However, no other evidence of the company’s policies or commitments related to key decent work issues was found in the public domain. These issues include the provision of secure, safe and healthy workplaces, where workers are fairly renumerated and have a meaningful say in decision-making.

The company has a policy prohibiting bribery and corruption, and it includes corresponding clauses in its business relationship contracts. Additionally, the company indicates that it has a confidential and anonymous channel/mechanism accessible to all stakeholders to raise bribery and corruption concerns and complaints without fear of reprisals. However, no other policies or commitments of the company related to key ethical business topics – personal data protection, tax, and lobbying and political engagement – were found in the public domain. This includes ensuring ethical business conduct throughout its operations and in its relationships with business partners.