The drive and commitment to reach net-zero by 2050 has taken great strides in the last few years as governing bodies begin
to enforce stronger net-zero targets. To reach these targets will require active transformation and investment from
companies across all industries. This award will celebrate organisations who have developed a credible strategy, either
through internal team development or external activities, to begin the transition to net-zero. With detailed evidence of
commitments, offset strategy and disclosures, the winners will be able to clearly demonstrate how they intend to reach netzero.
200 word overview:
India's commitment to combat climate change is underscored by its ambitious pledge to achieve Net Zero emissions by 2070.
The oil and gas industry, a cornerstone of India's economy, plays a crucial role in this transition. Recognizing the urgency of
climate action, Oil and Natural Gas Corporation (ONGC), a major player in the Indian oil and gas sector, has set an ambitious
goal to achieve Net Zero Emissions for Scope 1 and Scope 2 categories by 2038. This commitment was further evidenced by
ONGC's participation in initiatives like the Oil and Gas Climate Declaration at COP28, wherein ONGC is a signatory of OGDC.
By signing OGDC, ONGC has committed to initiate steps to achieve net-zero operations by 2050 at the latest, and ending
routine flaring by 2030, and near-zero upstream methane emissions. ONGC has agreed to continue to work towards adopting
industry best practices in emission reductions
In view of ONGC’s commitment to achieve Zero Routine flaring by 2030 and near-zero upstream methane emissions; Carbon
Management and Sustainability Group is contemplating to use remote sensing technology (TROPOMI datasets) to detect
methane leakage from different production installations across organisation. In this context, it is requested to provide Latitudes
and Longitudes of all production installations of respective Asset/Plant.
Details of the strategies and actions taken to reduce greenhouse gas emissions across operations, supply chains, and/or
products/services
1. The strategy (750 words):
The imperative for achieving a state of Net-Zero emissions arises from the significant impact of greenhouse gases, especially
CO2, on the escalating global warming crisis. The observed global warming, which has exceeded 1.1°C above pre-industrial
levels, indicates a pressing need for substantial reductions in greenhouse gas emissions. Net-Zero refers to a state in which
the greenhouse gases (GHGs) going into the atmosphere are balanced out by removal of GHGs out of the atmosphere. On
the other hand, the Science based Target Initiative defines corporate Net-Zero as:
1.
2.
Reducing scope 1, 2, and 3 emissions to zero or to a residual level that is consistent with reaching Net-Zero
emissions at the global or sector level in eligible 1.5°C-aligned pathways
Neutralizing any residual emissions at the Net-Zero target year and any GHG emissions released into the
atmosphere thereafter.
Base line GHG emissions for FY 2021-22 were calculated using emission factors and Global Warming Potential (GWP) factors
taken from IPCC’s Sixth Assessment report. The emissions calculation methodology has been prescribed by the GHG Protocol
which is based on SBTi. It classifies emissions into three core categories:
1.
2.
3.
4.
S No.
1
Scope 1 accounts for direct emissions stemming from sources under the organization's ownership or control, like
on-site fossil fuel combustion.
Scope 2 encompasses indirect emissions linked to the organization's consumption of purchased electricity, heat, or
steam.
Scope 3 encompasses all remaining indirect emissions, including those originating from supply chains, employee
commuting, and business-related travel.
ONGC has adopted the Absolute Contraction Approach established by the Science Based Targets initiative (SBTi)
to set its scope 1 and scope 2 emission reduction targets. For the fiscal year 2021-2022, baseline emissions have
been meticulously calculated, revealing a total of 9.00 million tonnes of carbon dioxide equivalent (tCO2e) from
operational activities. This includes 8.81 million tCO2e from Scope 1 emissions, with significant contributors being
captive power generation (49%), gas flaring (14%), and fugitive emissions (4%). Scope 2 emissions amount to 0.19
million tCO2e, predominantly from grid electricity purchases, underscoring ONGC's commitment to recognizing
indirect emissions from energy use. Additionally, the supply chain emissions (Scope 3) are substantial at 24.30
million tCO2e, bringing the grand total to 33.30 million tCO2e. This comprehensive breakdown of emission sources,
including contributions from fuel combustion, diesel, and aviation turbine fuel (ATF), provides stakeholders with a
detailed perspective on ONGC's environmental impact.
Particulars (Baseline FY 21-22)
Operational emissions
Scope 1 emissions (Million tCO2e)
(Million tCO2e)
8.81
2
Scope 2 emissions (Million tCO2e)
0.19
3
Total Emissions (Scope 1 + 2 in Million tCO2e)
Supply Chain Emissions - (Baseline FY 21-22):
9.00
4
Scope 3 emissions (Million tCO2e)
24.30
5
Grand Total (Scope 1 + 2 + 3 in Million tCO2e)
33.30
S No.
1
(Million tCO2e)
%
Captive Power Generation
Emission Sources (Scope 1)
4.40
49%
2
Gas Flaring
1.22
14%
3
Acid Gas Venting
0.54
6%
4
Fugitive
0.36
4%
5
Fuel Combustion- Heating and CHP
1.32
15%
6
Diesel
0.94
10%
7
ATF
0.02
0%
0.19
2%
100 %
Emission Sources (Scope 2)
8
Grid Electricity Purchase
Total
9.00
Methodology adopted for firming up of De-carbonization Levers for ONGC Operations (Scope 1 and 2)
Projected GHG emissions
A regression model has been applied to project GHG emissions, until fiscal year 2038. The emission projection has been
determined by utilizing SBTi’s absolute contraction methodology where reduction in emission intensity remains the same
throughout the years. It also takes into consideration ONGC’s assumed growth rate.
Projected Scope 1 and 2 emissions
13,23
10,00
9.00
9,75
0,19
8,81
0,21
9,54
FY 22
11,29
14,58
0,28
0,31
11,05
12,95
14,27
FY 25
FY 30
FY 35
FY 38
Total Emissions
Scope 1
0,24
0,00
Scope 2
Based on data from the GHG Inventorization conducted in FY 22, asset wise emissions have been projected. The asset wise
emissions projection has been further drilled down to emission hotspots which were utilized to identify the most efficient ways
to curb Scope 1 and 2 emissions by 2038.
The De-carbonization roadmap represents a strategic initiative aimed at achieving a milestone of zero operational (Scope 1
and Scope 2) emissions by the Fiscal year 2038. The roadmap has been developed, considering the projected Scope 1 and
Scope 2 emissions for ONGC until FY 38. In order to navigate the landscape of emissions reduction, the roadmap incorporates
a series of De-carbonization levers strategically spread across short, medium, and long-term horizons. These levers are
designed to address various aspects of ONGC's operations, ensuring a comprehensive and phased approach to emission
reduction. The short-term measures focus on quick wins and immediate impact, while the medium and long-term strategies
delve into more transformative changes, demonstrating a commitment to sustained environmental responsibility.
Business as usual emission projections
Emission Hotspots
Identified Levers
Captive power generation and grid
electricity

RE Hybrid (30% solar, 70% wind), Offshore wind
Gas flaring

Zero routine flaring by 2030 (Technology adoption)
Acid gas venting (Hazira and Uran)

Carbon Capture and Utilization and CO2 transportation to nearby
industry
Fugitive Methane Emissions

Technology adoption
Fuel combustion (Natural gas as a fuel) in
plants

80 % Compressed Biogas + 20% Green Hydrogen Blending
Fuel combustion (Natural gas as a fuel) in
onshore assets

Green Hydrogen
Diesel (offshore logistics, Offshore rig
operations and corporate services)

EV
Diesel (onshore and offshore operations)

Initially biodiesel shall be used and post 2030 BESS
Carbon offsetting

CCS, alternatively afforestation / nature-based solutions may be
deployed
The proposed De-carbonization levers encompass a range of initiatives, including technological advancements, operational
optimizations, and potential shifts in energy sources. By embracing these levers, ONGC aims to proactively contribute to a
low-carbon future.
Description of innovative approaches or technologies employed to accelerate the transition to net zero, along with
quantifiable impacts on emissions reduction.
2. The impact (750 words):
Net-Zero Roadmap for ONGC
Through a systematic deployment of various decarbonization measures, ONGC's pathway showcases a decline in emissions,
affirming the pledge for net zero by 2038:
Renewable Energy as a Decarbonization Lever
State-specific initiatives in renewable energy underline ONGC’s strategic approach. Gujarat, Maharashtra, Tamil Nadu,
Andhra Pradesh, and Assam are key states where ONGC plans to significantly expand its renewable energy capacity,
particularly focusing on hybrid solar and wind power, as well as small hydro projects. The total projected capacity across these
states is 6,341.9 MW, with a combined CAPEX of approximately 556,203.4 million INR, OPEX of 5,689.36 million INR, and
an overall emission reduction of 7.86 million tCO2e. This comprehensive plan is expected to generate substantial annual
savings and achieve payback periods ranging from 8 to 12 years.
The deployment of renewable hybrid energy (combining solar and wind) is a key component of ONGC’s strategy. This includes
a blend of 30% solar and 70% wind capacity, ensuring round-the-clock energy availability and reducing dependency on fossil
fuels. Offshore wind projects, particularly in Maharashtra and Andhra Pradesh, further bolster ONGC’s renewable portfolio.
Land Requirements
Land requirements for these renewable energy installations are meticulously planned. For instance, Gujarat will require
approximately 2,008 acres for its solar and wind projects combined. Similarly, Maharashtra will need around 8,299 acres for
its extensive renewable hybrid and offshore wind projects.
Investment in Green Hydrogen and Carbon Capture
The development of green hydrogen capacity is another critical lever in ONGC’s strategy. Collaboration with potential players,
start-ups, and strategic investments will enable the establishment of green hydrogen projects, aimed at achieving a capacity
of 0.15 million MT by FY 38, resulting in a significant reduction in emissions. Carbon Capture Utilization and Storage (CCUS)
is also a priority, with capacities aimed at capturing substantial amounts of CO2 emissions from various operations.
Additional Decarbonization Levers
ONGC is amplifying its commitment to reducing greenhouse gas emissions through a range of additional decarbonization
strategies. The expansion of capacities for compressed biogas and biodiesel is a significant focus, aiming to harness these
sustainable energy sources to substantially cut emissions. This initiative not only supports a cleaner environment but also
promotes energy diversification.
Achieving zero routine flaring by FY 2030 is another critical objective. ONGC is implementing advanced technologies to
capture and utilize flare gas, thereby minimizing waste and reducing the environmental footprint of its operations. This effort
aligns with global best practices and reinforces ONGC's dedication to sustainable operations.
Reducing fugitive methane emissions is also a priority. By establishing robust monitoring systems, ONGC aims to detect and
mitigate leaks, thereby preventing this potent greenhouse gas from entering the atmosphere. These systems are crucial for
enhancing operational efficiency and achieving significant emission reductions.
Investing in Battery Energy Storage Systems (BESS) is essential to support the integration of renewable energy initiatives.
ONGC is committed to building substantial BESS capacity to ensure a stable and reliable energy supply, even when renewable
sources are intermittent. This investment is pivotal for transitioning to a sustainable energy future.
The transition to electric vehicles (EVs) for logistics operations represents another key initiative. By replacing conventional
fuel-powered vehicles with EVs, ONGC aims to further reduce its carbon footprint. This shift not only contributes to emission
reductions but also supports the broader adoption of clean transportation technologies.
Key Initiatives Planned To Be Taken by ONGC
Renewable Energy and Green Hydrogen
Renewable Hybrid Energy Projects: ONGC is spearheading large-scale renewable hybrid energy projects with a combined
capacity of 5,465.8 MW. These projects, which integrate both solar and wind energy, are expected to reduce emissions by
6.88 million tCO2e, significantly contributing to the company's sustainability goals.
Offshore Wind Projects: In addition to onshore initiatives, ONGC is developing offshore wind projects with a capacity of 720
MW. These projects are projected to cut emissions by 0.85 million tCO2e, showcasing ONGC's commitment to harnessing
the full potential of renewable energy sources.
Small Hydro Projects: ONGC is also investing in small hydro projects, which will add 156.1 MW of clean energy capacity and
reduce emissions by 0.13 million tCO2e. These projects highlight the company's diverse approach to renewable energy
generation.
Energy Efficiency and Carbon Capture
Carbon Capture Utilization and Storage (CCUS): ONGC is advancing in the field of carbon capture, utilization, and storage
with a capacity to sequester 2.21 million MT of CO2 emissions. This technology is vital for reducing the carbon intensity of
industrial processes and achieving long-term sustainability targets.
Green Hydrogen Projects: The development of green hydrogen capacity is another cornerstone of ONGC's strategy. With a
planned capacity of 0.15 million MT, these projects are expected to reduce emissions by 0.15 million tCO2e, positioning ONGC
at the forefront of the hydrogen economy.
Battery Energy Storage Systems (BESS): ONGC's investment in BESS aims to support the stability and reliability of renewable
energy systems. With a capacity of 1,300 MW, these systems will help reduce emissions by 1.02 million tCO2e, ensuring that
renewable energy can be effectively integrated into the grid.
Compressed Biogas and Biodiesel: Expanding capacities for compressed biogas and biodiesel to 0.48 million MT will lead to
an emission reduction of 0.48 million tCO2e. These initiatives not only support sustainable energy but also contribute to waste
management and rural development.
Innovative Initiatives
Solar and Wind Projects: In Gujarat, ONGC is developing extensive solar and wind projects, with capacities of 268 MW and
1,247 MW respectively. These projects, with a combined CAPEX of 115,313 million INR and OPEX of 1,233 million INR, are
expected to reduce emissions by 1.46 million tCO2e. These efforts demonstrate ONGC's strategic focus on leveraging India's
renewable energy potential.
Offshore Wind in Maharashtra: ONGC's offshore wind project in Maharashtra, with a capacity of 720 MW, is another major
initiative. With a CAPEX of 69,912 million INR and OPEX of 577 million INR, this project will cut emissions by 0.85 million
tCO2e, contributing significantly to the state's renewable energy infrastructure.
Carbon Capture: ONGC's commitment to carbon capture involves a substantial capacity of 2.21 million MT CO2. This initiative
is crucial for mitigating the environmental impact of industrial emissions and supporting global climate goals through innovative
carbon management technologies.
ONGC has participated in the Clean Development Mechanism (CDM) to generate Certified Emissions Reductions (CERs).
ONGC has already submitted application with UNFCCC for transition of 6 CDM projects under Article 6.4 of Paris Declaration,
2015.
ONGC also monitors the waste water usage and maintains the quality of effluent discharged conforming to statutory
requirements. Treatment and disposal of produced water from operations, produced water is re-used and recycled,
wherever feasible. The Company has 41 number of Effluent Treatment Plants across work centres to treat approx. 104,000
m3/day of waste water produced during E&P operations. Recently, ONGC Energy Centre in Collaboration with BARC has
developed a technology for treating oil-contaminated effluent to Potable grade in Mehsana. The first phase of the
geothermal project has begun in Puga, Ladakh but has faced challenges related to logistics and extreme temperatures. The
second phase of this project entails drilling two wells, including a 1000-meter well, and installing a steam turbine with a
capacity of 1 MW.
Evidence of robust monitoring and reporting mechanisms to track progress towards net-zero targets, including relevant data
and metrics.
3. Monitoring and reporting (750 words):
ONGC has been publishing GRI based, Independently assured Group Sustainability Report for ONGC group of company. The
focus of Sustainability Reporting is on Social, Environmental and Economic impacts (also called triple bottom-line
performance) of the company. It was brought out that only limited Governance aspects are covered in a Sustainability Report.
Principle of Responsible Investment (PRI) is rapidly becoming a mainstream concern based on the belief that addressing
Environmental-Social-Governance issues will protect and enhance portfolio returns of all stakeholders. Most international and
domestic public companies are being evaluated and rated based on their Environmental, Social and Governance (ESG)
performance by various institutions and rating agencies. ESG Reporting has evolved as industry best practices and become
necessary as ESG considerations are incorporated in to the Credit Ratings of the company.
Rating Agencies collect data available in public domain like Integrated Reports, BRSR Reports, News Paper clippings, Media
coverage, etc. irrespective of whether the company seeks a rating from them or not. The demand for such Ratings comes
from the investors. The Ratings of ONGC, voluntarily made by two such agencies; Morgan Stanley Capital International (MSCI)
and Sustainalytics are expected to improve in future, once ONGC provide them data in their desired formats by engaging a
reputed Rating Agency. ESG Reporting and ESG Rating are different windows. There are different frameworks available for
ESG Reporting and ESG Rating.
Some of the popular reporting frame works are:
a) Global Reporting Initiative, Amsterdam, b) Business Responsibility Report, India, c) International Integrated
Reporting Council (IIRC), London d) Carbon Disclosure Project (CDP), London and e) Task Force on
Climate Related Financial Disclosures, (TCFD), Financial Stability Board, Basel, Switzerland.
Some of the Popular Rating Agencies are:
a)Morgan Stanley Capital International (MSCI), India ESG Index b) Sustainalytics, Netherlands c) Dow Jones Sustainability
Index (DJSI), New York Stock Exchange d) Financial Times Stock Exchange (FTSE), London e) Standard & Poor (S&P) ESG
Index, New York Stock Exchange f) Confederation of Indian Industries (CII)’s Sustainability Plus, India.
Since, the beginning of Sustainability Report in FY 2009-10, ONGC has adopted Global Reporting Initiative (GRI) as reference
Framework/Standard. Being an emerging trend, fragmented frameworks, it is found that there is no specific standard
developed for ESG Reporting. But as Sustainability Report is also a form of ESG Report (with limited disclosures on
Governance), the same standard been adopted for ESG Reporting. Similar to the Sustainability Report, in order to enhance
the authenticity of the report, the report could be assured through registered third party assurer. AA 1000 AS standard has
been adopted for ESG Report also for third party assurance. A reputed ESG Rating Agency Bureau Veritas been hired for
assurance. For ESG Rating of ONGC, in line with the methods adopted by the Finance section of ONGC, for engaging Credit
Rating Agencies like Moody’s and S&P. Benefits that are likely to accrue to ONGC by adopting ESG reporting. ONGC Group
of Companies also adopted GRI based ESG Reporting along with Sustainability report from FY 2019-20.
Oil and Natural Gas Corporation (ONGC) continuously doing Board level monitoring of steadfast commitment to
Environmental, Social, and Governance (ESG) principles. The company's ESG strategy is deeply integrated into its operations,
focusing on minimizing environmental impact, promoting social well-being, and upholding the highest standards of corporate
governance. ONGC continuously strives to enhance its practices for ensuring transparency, accountability, and ethical conduct
across all activities. By actively engaging with its stakeholders, ONGC aims to create shared value and contribute to
sustainable development.
Emission monitoring, accounting & mitigation is a business as usual case in ONGC. Different types of projects have been
taken up across the organization for emission reduction. Projects for Reduction in Gas Flaring, Renewable Energy, Dynamic
Gas Blending in diesel engines, Installation of Gas Compressors, Energy Efficient Lighting Systems, Energy Efficient
Motors, Micro Turbines, Replacement of Natural Gas with Pneumatic Air for instrumentation purposes, etc.
ONGC has adopted top down approach to detect Methane concentration in atmosphere above its area of operation using
TROPOMI (Tropospheric Monitoring Instrument) Satellite data through its remote sensing division of KDMIPE. At COP 28,
ONGC signed the OGDC and it has made a commitment to initiate necessary steps to achieve zero routine flaring by 2030,
and near-zero upstream methane emissions. World Bank has agreed to finance ONGC’s initiative for Zero Routine Flaring
and near Zero methane emission by 2030 through Trust Fund. This initiative, in collaboration with World Bank, will ensure
assess to latest technology and its induction.
Integral to ONGC’s commitment is the greening of entire supply chain. Collective efforts of all stakeholders, including the
valued suppliers, are indispensable in achieving sustainability objectives. ONGC in launching an initiative with Top Fifty
vendors to assist them in voluntarily disclose their emissions.