SOCAR Summarized ESG Results: Minus 1 Million Tons of Emissions and $200 Million for "Green" Projects

In 2025, SOCAR reduced greenhouse gas emissions from its operations in Azerbaijan by approximately 1 million tonnes in CO₂ equivalent and issued $200 million in green bonds to support renewable energy projects.

This is stated in the 2025 Sustainability Report published by the State Oil Company of Azerbaijan (SOCAR).

The document presents the results of the company's environmental, social, governance (ESG), and economic activities. Sustainability indicators for SOCAR's operations in Azerbaijan and its main areas of activity abroad are disclosed in accordance with international reporting requirements — transparently, reliably, and in a comparable format.

The past year marked an important stage in integrating sustainability principles into SOCAR's corporate governance system. In particular, the company conducted a Double Materiality Assessment for the first time. Based on its results, climate change, business ethics, and environmental pollution were identified as the most significant sustainability topics for SOCAR.

In addition, the company launched the ESG Data Platform — a unified digital platform for managing ESG data. Its use is expected to significantly improve the quality and traceability of information, as well as the efficiency of the reporting process.

The report also reflects the key results of SOCAR's climate-related activities. The Decarbonization Roadmap approved in 2025 outlines key areas of work on reducing carbon and methane emissions, electrification, implementation of carbon capture technologies, improving energy efficiency, and expanding the use of renewable energy sources.

During the reporting year, greenhouse gas emissions from SOCAR's operations in Azerbaijan were reduced by approximately 1 million tonnes in CO₂ equivalent. This was achieved primarily through the implementation of a Leak Detection and Repair (LDAR) program at the Azneft Production Association.

Significant steps were also taken in the area of sustainable financing. To support the financing of renewable energy projects, SOCAR issued green bonds worth $200 million.

The development of human capital remains one of the company's key priorities. In 2025, SOCAR implemented a number of professional development programs for employees, including the "Leadership Academy," "Energy Leaders," and "Young Talents."

More than 1 million hours of training were organized for SOCAR Group employees. The employee engagement rate in Azerbaijan reached 84%, and the satisfaction level reached 78%. The SOCAR Group's social expenditures for the reporting year amounted to 412 million manats.

The document also highlights the company's contribution to the development of the local economy. The share of SOCAR's procurement expenditures directed to local suppliers increased from 82% to 88% in 2025. This indicator reflects the company's contribution to developing the local supply chain, supporting local businesses, and creating economic value within the country.