Focus area: climate strategy, decarbonization, and climate risk management
Organization type: JSC Uzbekneftegaz oil and gas company / group of production assets
Location: Republic of Uzbekistan
HPBS role: climate consultant / developer of the greenhouse gas emissions accounting system and climate strategy
Result: development of a comprehensive system for accounting for Scope 1, Scope 2, and Scope 3 greenhouse gas emissions, setting decarbonization targets, assessing climate risks, and formulating the climate strategy of JSC Uzbekneftegaz.
JSC Uzbekneftegaz is one of the largest companies in Uzbekistan’s energy sector. For oil and gas companies, greenhouse gas emissions management is becoming part of strategic management: emissions data are required to assess climate risks, plan asset upgrades, engage with financial institutions, and prepare a long-term decarbonization program.
The HPBS project provides for the creation of a unified methodological and analytical foundation that connects corporate emissions accounting, climate risks, emissions-reduction targets, and investment measures in a single climate strategy.
Our role
HPBS is carrying out a comprehensive program to develop a corporate greenhouse gas emissions and climate risk management system for JSC Uzbekneftegaz.
The work includes defining organizational and operational accounting boundaries, analyzing emission sources, developing calculation models and data-collection forms, inventorying direct and indirect emissions, setting decarbonization targets, climate modeling, and creating a portfolio of measures to reduce emissions and adapt to climate change.
Particular attention is paid to ensuring that the climate strategy can be used not only as a reporting document, but also as a tool for management and investment decision-making.
Our services:
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definition of organizational and operational boundaries for corporate greenhouse gas emissions accounting;
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identification and systematization of emission sources;
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development of the methodology for accounting for Scope 1, Scope 2, and Scope 3;
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collection, analysis, and processing of source data;
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development of calculation models, formulas, and data-collection forms;
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inventory of direct and indirect greenhouse gas emissions;
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preparation of corporate GHG reporting;
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development of emissions-reduction targets in line with Science Based Targets initiative — SBTi approaches;
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formulation of short-term and medium-term targets;
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identification of greenhouse gas emissions-reduction measures and projects;
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preliminary assessment of the cost of decarbonization measures;
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quantitative assessment of physical and transition climate risks and opportunities;
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climate modeling under the SSP1-2.6, SSP2-4.5, SSP3-7.0, and SSP5-8.5 scenarios;
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analysis of potential financial and operational impacts;
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development of adaptation and climate risk management measures.
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preparation of recommendations for integrating climate factors into the risk management system and investment decisions;
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development of a roadmap toward carbon neutrality;
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development of the final climate strategy and a portfolio of decarbonization and adaptation projects.
Climate assessment scope
The project integrates several levels of the company’s climate management:
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GHG Accounting — corporate accounting for Scope 1, Scope 2, and Scope 3;
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Decarbonization — setting targets and identifying emissions-reduction measures;
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Climate Risks — assessment of physical and transition climate risks;
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Climate Scenarios — analysis of future climate conditions under international SSP scenarios;
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Investment Planning — assessment of investment needs and implementation costs for the measures;
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Climate Strategy — integration of data, targets, risks, and projects into a unified long-term company strategy.
Result
The project is establishing a comprehensive climate management system for JSC Uzbekneftegaz, including a corporate greenhouse gas emissions inventory, emissions-reduction targets, climate risks and opportunities, adaptation measures, and a portfolio of decarbonization projects.
The final climate strategy provides for a roadmap toward carbon neutrality, an assessment of investment needs, estimated implementation costs for the measures, and mechanisms for engagement with key stakeholders.
The project creates a foundation for a consistent transition from calculating the company’s carbon footprint to managing emissions, investment planning, and implementing specific decarbonization projects.
Project significance
For the oil and gas industry, climate transformation entails technological, financial, and regulatory changes simultaneously. An effective climate strategy must therefore take into account not only the volume of emissions, but also the cost of reducing them, assets’ climate risks, investment priorities, and the business’s long-term resilience.
The JSC Uzbekneftegaz project demonstrates a transition from fragmented climate calculations to systematic corporate management of carbon and climate risks.
For HPBS, this project is one of the key examples of comprehensive work with a major industrial company, in which Scope 1–3 emissions accounting, climate modeling, Science-Based Targets, climate risk management, and a decarbonization investment program are combined into a unified strategic system.