Climate Policy Engagement Analysis
Climate Policy Engagement Overview: Novatek appears to have mixed support of climate policy in its top-line communications and limited engagement with climate-related regulations. It also appears to support a long-term role for fossil gas in the energy mix.
Top-line Messaging on Climate Policy: Novatek appears to have mixed support on climate policy in its top-line communications. In its 2021 Sustainability Report, published in June 2022, it appears to support the goals of the Paris Agreement. However, in its 2020 Sustainability Report, published in July 2021, the chairman of Novatek, Leonid Mikhelson, was unsupportive of the need for government regulations on climate change.
Engagement with Climate-Related Regulations: Novatek appears to have very limited engagement with climate-related regulations. In its 2020 Sustainability Report, Novatek takes no clear position on carbon tax or a carbon border adjustment mechanism.
Positioning on Energy Transition: Novatek appears to have a mixed position on the transition of the energy mix. In its 2021 Sustainability Report the company appears to support the transition away from coal to a long-term role for fossil gas. Novatek’s chairman, Leonid Mikhelson, appeared to support an expanded role for hydrogen in a press release in February 2021, but it is unclear whether he supported the decarbonization of production. In Novatek’s 2021 Sustainability Report the company also appeared to support a role for ammonia in shipping and as a hydrogen carrier but again it is unclear on support for decarbonizing production.
Industry Association Governance: Novatek disclosed a list of its industry association memberships on in its 2021 Sustainability Report, without providing details on the type of membership and role within each industry association, their climate policy positions, how the company influences or attempts to influence their climate policy positions, governance processes for assessing and/or resolving potential cases of misalignment. The company has not published a review of its industry association memberships.