SOCAR 2025 Sustainability Report

Scope and reporting standards

The 2025 Sustainability Report discloses SOCAR’s environmental, social, governance and economic indicators for operations in Azerbaijan and key international activities, aligned with GRI Standards including the GRI 11: Oil and Gas Sector Standard. The report was independently assured by the Azerbaijan branch of Ernst & Young Holdings (CIS) B.V. and references the UN Global Compact, the UN SDGs, SASB and ESRS principles.

Materiality and governance

SOCAR completed its first Double Materiality Assessment, which flagged climate change, business ethics and pollution as the company’s most significant sustainability topics. An ESG Data Platform was launched to provide a unified digital solution for managing ESG data, improving data quality, traceability and reporting efficiency.

Climate and decarbonization

The company approved a Decarbonization Roadmap in 2025 setting priorities to reduce carbon and methane emissions, advance electrification, deploy carbon capture technologies, improve energy efficiency and expand renewable energy use. During the reporting year, roughly 1 million tonnes of CO2 equivalent were reduced across SOCAR’s Azerbaijan operations, mainly through the Leak Detection and Repair programme at the Azneft Production Union.

Finance, local economy and procurement

SOCAR issued USD 200 million in Green Bonds to support renewable energy projects. Procurement spending directed to local suppliers in Azerbaijan increased from 82% to 88%, strengthening the domestic supply chain.

People and social expenditure

Human capital initiatives in 2025 included a Leadership Academy and Energy Leaders and Young Talents programmes. The SOCAR Group delivered over 1 million training hours; employee engagement in Azerbaijan reached 84% and satisfaction 78%. Social expenditure for the year amounted to AZN 412 million.