In 2025, SOCAR reduced greenhouse gas emissions from its operations in Azerbaijan by approximately 1 million tons of CO2 equivalent and issued $200 million in green bonds to support renewable energy projects.
This was announced in the Sustainable Development Report for 2025 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 key activities 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 its first Double Materiality Assessment. As a result, climate change, business ethics, and environmental pollution were identified as the most significant sustainability topics for SOCAR.
Additionally, 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 main results of SOCAR's climate activities. The Decarbonization Roadmap approved in 2025 outlines key areas of work to reduce carbon and methane emissions, electrification, implementation of carbon capture technologies, energy efficiency improvements, and expansion of renewable energy use.
In the reporting year, greenhouse gas emissions from SOCAR's operations in Azerbaijan were reduced by approximately 1 million tons of CO2 equivalent. This was achieved mainly through the implementation of the leak detection and repair (LDAR) program at the Azneft Production Association.
Significant steps were also taken in the area of sustainable finance. To support financing for renewable energy projects, SOCAR issued $200 million in green bonds.
One of the company's key priorities remains the development of human capital. In 2025, SOCAR implemented a number of employee professional development programs, 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 rate was 78%. Social expenditures of the SOCAR group 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 spending directed to local suppliers increased from 82% to 88% in 2025. This indicator reflects the company's contribution to the development of the local supply chain, support for local businesses, and creation of economic value within the country.
