Azernews.Az

Nazrin Abdul

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SOCAR has begun issuing green bonds in the local financial market, Azernews reports, citing SOCAR.

In recent years, new challenges in the fields of Environment, Social Responsibility, and Corporate Governance (ESG), along with increasing compliance requirements, have necessitated the application of international standards when attracting financial instruments to global markets.

As a result, companies are placing greater emphasis on applying ESG standards. To meet these requirements, SOCAR has implemented an ESG grading process in recent years and has been ranked above many similar companies on the evaluation scale. This demonstrates SOCAR's commitment to integrating ESG standards in the management of its debts in accordance with international norms, while also prioritizing green financing opportunities. These efforts support the efficient management of SOCAR's strategic renewable energy projects, enhance collaboration with international partners in this field, and contribute to decarbonization processes within its oil and gas operations.

The funds raised through this issuance will be directed toward financing projects within SOCAR's green agenda. All necessary preparations have been completed, including obtaining an ESG rating and improving the company's credit rating.

Looking ahead, SOCAR plans to prioritize the use of green financial instruments to meet the growing demands of ESG standards. The company is committed to maintaining transparency—an essential aspect of corporate governance at the international level—and aims to increase the proportion of green financing in its debt portfolio as much as possible.