BAKU, Azerbaijan, August 12. SOCAR has published its 2025 Sustainability Report.
The report presents the Company’s environmental, social, governance (ESG) and economic performance, disclosing sustainability indicators for SOCAR’s operations in Azerbaijan and its key international activities in a transparent, reliable and comparable manner, in line with internationally recognized reporting requirements.
The year 2025 marked an important milestone in integrating sustainability into SOCAR’s corporate governance system. During the reporting period, the Company conducted its first-ever Double Materiality Assessment. Based on the assessment results, climate change, business ethics and pollution were identified as SOCAR’s most significant sustainability topics. In addition, the ESG Data Platform was launched, providing a unified digital solution for managing ESG data and significantly improving data quality, traceability and the efficiency of the reporting process.
The report also highlights SOCAR’s key achievements in climate action. In particular, the company’s Decarbonization Roadmap, approved in 2025, defines the main areas of action for reducing carbon and methane emissions, advancing electrification, deploying carbon capture technologies, improving energy efficiency and expanding the use of renewable energy sources.
During the reporting year, approximately 1 million tonnes of CO₂ equivalent greenhouse gas emissions were reduced across SOCAR’s operations in Azerbaijan, primarily through the implementation of the Leak Detection and Repair (LDAR) programme at SOCAR’s Azneft Production Union.
SOCAR also made significant progress in sustainable finance. During the reporting period, the Company issued USD 200 million in Green Bonds to support the financing of renewable energy projects.
Human capital development remains one of SOCAR’s key priorities. In 2025, the Company implemented a number of development initiatives, including the Leadership Academy, as well as Energy Leaders and Young Talents programmes. More than 1 million training hours were delivered to employees across the SOCAR Group. Employee engagement in Azerbaijan reached 84%, while employee satisfaction stood at 78%. During the reporting year, the SOCAR Group’s social expenditure amounted to AZN 412 million.
The report also outlines SOCAR’s contribution to the development of the local economy. In 2025, the share of procurement spending directed to local suppliers in Azerbaijan increased from 82% to 88%, reflecting SOCAR’s continued commitment to strengthening the local supply chain, supporting domestic businesses and creating greater economic value within the country.
Overall, the report demonstrates the progress achieved in integrating sustainability into SOCAR’s corporate governance, operational activities and strategic decision-making processes.
The report has been prepared in accordance with the GRI Standards, including the GRI 11: Oil and Gas Sector Standard, and has undergone independent assurance by the Azerbaijan branch of Ernst & Young Holdings (CIS) B.V. It also takes into account 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 (ESRS).
