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    Naftogaz joins UN sustainability goals

Summary

Affordable corporate financing will be key to Naftogaz' development plans.

by: William Powell

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Complimentary, Natural Gas & LNG News, Europe, Energy Transition, Carbon, Corporate, Political, News By Country, Ukraine

Naftogaz joins UN sustainability goals

Naftogaz Ukrainy has joined the United Nations Global Compact (UNGC) as a participant, it said July 23, calling the decision a logical extension of its corporate policy. It will undertake to attain six sustainable development goals and report on their execution, the first of which is affordable and clean energy.

Naftogaz Group is developing a green business model, and this is not only due to the global trend towards a steady reduction in the use of fossil fuels, but also to its own ambitious plans to implement low-carbon projects, in particular in the field of renewable and bio-energy, energy efficiency, and the hydrogen economy.... Without appropriate environmental and social governance strategies, it is impossible to obtain investment and financing even for Naftogaz’s core activities,” said the company.

UNGC also stressed the importance of Naftogaz' decision, saying that large business has a significant impact on the regions where it operates, on the environment, on its employees, consumers, and partners. "When companies like Naftogaz take responsibility for the impact of their activities on the world we live in, we are moving closer to achieving our Sustainable Development Goals,” it said.

Naftogaz Group is the largest vertically integrated oil and gas company in Ukraine, with operations spanning natural gas, oil and gas condensate exploration and production, gas and oil storage, oil transmission and transit, as well as supply of natural and liquefied gas to consumers. So after 30 years of economic difficulties as an independent state, noted for corruption in the energy sector, the scope for unplanned and accidental emissions is large.

According to Climate Action Tracker's country update published July 2020, the Ukrainian 'green deal' focuses on reducing greenhouse gas emissions through improving energy efficiency and boosting the deployment of renewable energy. "While this is a step in the right direction, the 2050 phase-out date for coal is too late, and under the current plan Ukraine will achieve carbon-neutrality only by 2070."

The UNGC is a voluntary initiative based on CEO commitments to implement universal sustainability principles and to undertake partnerships in support of UN goals, stating ten principles in the areas of human rights, labour, the environment and anti-corruption. Participants included over 13,500 businesses and other organisations in over 162 countries as of July 2021.