PETRONAS Launches Supplier Support Programme for Sustainable Practices in OGSE

Kuala Lumpur, 12 August 2024 – In encouraging Malaysia’s oil and gas services and equipment (OGSE) suppliers to embrace sustainability principles, PETRONAS today launched the PETRONAS Supplier Support Programme (PSSP) in collaboration with the Joint Committee for Climate Change (JC3) Greening Value Chain Programme, Bursa Malaysia and the UN Global Compact Network Malaysia & Brunei (UNGCMYB).

The programme aims to provide the necessary tools, capability trainings and access to transition financing for suppliers to increase adoption and disclosure of sustainability practices, thus accelerating their sustainability journey in support of the National Energy Transition Roadmap (NETR).

PETRONAS Executive Vice President and Group Chief Financial Officer, Liza Mustapha officiated the launch, accompanied by Bursa Malaysia Chief Executive Officer, Datuk Muhamad Umar Swift, Bank Negara Malaysia Assistant Governor, Dr. Norhana Endut and UNGCMYB Executive Director, Faroze Nadar.

At a panel session held during the event, Liza Mustapha acknowledged the challenges that OGSE suppliers, especially small and medium-sized enterprises (SMEs), face in implementing sustainability practices crucial for the energy transition.

“We recognise that OGSE suppliers especially SMEs, face resource constraints in implementing sustainability practices and these practices are key in enabling the energy transition. We are rallying together with our suppliers in support of a just transition that ensures no one is left behind. The PETRONAS Supplier Support Programme is a significant milestone, providing a platform for the industry to demonstrate practical action and inspire others to act,” she said.

Through the programme, PETRONAS will be an anchor in the Greening Value Chain (GVC) programme, whereby suppliers are exposed to:

• Environmental, Social and Governance (ESG) knowledge and capacity building programmes specific to the OGSE industry that caters to suppliers of all maturity levels;
• Centralised Sustainability Intelligence (CSI) Platform that provides suppliers with a suite of tools designed to assist businesses in effectively measuring, managing and reporting their carbon emissions and sustainability risks and;
• Access to financing including Bank Negara Malaysia’s Low Carbon Transition Facility and High Tech and Green Facility to support their transition efforts.

The launch of the programme has garnered positive feedback from PETRONAS suppliers, highlighting its impact on supporting SMEs in their sustainability efforts.

“PSSP is what we have been waiting for. As SMEs, we need the guidance and support to help us transition our operations towards low carbon practices. This programme will enable us to do so in a more systematic way and ensure no one is left behind. We are excited to embark on the journey together with PETRONAS,” said Hammer Engineering Sdn Bhd Managing Director, Lokman Jusoh.

Another PETRONAS supplier, Orogenic Resources Sdn Bhd, Managing Director, Ahmad Tariq Ahmad Ziyad said, “PSSP provides Malaysian OGSE SME’s a platform to be future ready amid implementing sustainability practices in our supply chain to meet the relevant standards to be competitive and resilient. We are keen to be a part of PSSP that will elevate us to be more relevant to the changing business landscape”.

In PETRONAS’ journey towards energy transition, PETRONAS Suppliers Support Programme is a testament to our collaborative and progressive approach in strengthening the resilience of the OGSE industry and ecosystem, which promotes economic growth.