Why It Matters
A robust business strategy helps strengthen our business fundamentals for us to weather external challenges such as shifts in economic landscapes, geopolitical instabilities, climate change, as well as fluctuations in supply and demand that may impact our ability to create value.
This in turn shapes our growth towards financial resilience, which allows us to continue providing sustainable solutions and value creation to our stakeholders.
This in turn shapes our growth towards financial resilience, which allows us to continue providing sustainable solutions and value creation to our stakeholders.
Our Approach
- We remain guided by our Two-Pronged Strategy through three key strategic thrusts: Operational Excellence, Commercial Excellence and Growth Delivery Excellence. These are bolstered by PCG’s comprehensive Sustainability Agenda, which encompasses Environmental, Economic, and Social pillars, all grounded in robust Governance practices.
- Our Operational Excellence initiatives are aimed at achieving sustainable world-class plant performance through HSE excellence, plant reliability and efficiency, plant turnaround excellence, optimising our value chain, as well as digital transformations and solutions.
- Commercial Excellence initiatives are aimed at enhancing value by adopting a customer-centric approach. This strategy focuses on sustaining and expanding market reach, achieving optimal netbacks and introducing innovative product solutions.
- Through Growth Delivery Excellence, we also assess and explore sustainability- related growth that aligns with our enhanced sustainable portfolio, which includes Low Carbon solutions and Carbon Dioxide utilisation, Circular Economy and solutions as well as Bio-based chemicals.
How We Create Value
01
Sustainable Growth
- Achieved successful commercial operations for Specialty Ethoxylates and Polyether Polyols plant in Kertih, Pengerang Petrochemical Complex and Nitrile Butadiene Latex in Pengerang and 2-Ethylhexanoic Acid in Gebeng, growing our product offering to meet market demand.
- Isononanol plant in Pengerang is in its commissioning stage and will gradually ramp up to full commercial operation in 2025. This product will be used in the automotive and building industries.
- Progressed with the construction of Melamine plant in Gurun, Kedah and Maleic Anhydride (MAn) plant in Gebeng, Pahang.
- Commissioned a state-of-the-art, ISCC PLUS certified plant in Sayakha, India in February 2024.
- Assumed full ownership of Perstorp’s polyol facility in Zibo, Shandong province, China in March 2024, ensuring that Perstorp can continue developing the site and make substantial site upgrades to safeguard its competitiveness.
- Began offering C8-C10 Oxo Alcohols, leveraging synergies from PCG’s Isononanol plant in Johor to enrich our portfolio and strengthen our market position.
- Launched BRB’s Emfinity®, a sustainable, diverse solution for skincare and cosmetics, addressing the demand for eco-friendly personal care products.
- Acquired OQ Chemicals Nederland B.V., enabling Perstorp to leverage advanced technologies, increase production capacity, and strengthen its leadership in sustainable chemical solutions. This acquisition improved operational efficiency and provided better support to customers worldwide.
02
Operational Effectiveness
- Partnered with a green energy provider on electricity and natural gas supply, and adopted a framework to monitor sustainability progress. This framework helps organisations comply with reporting directives, perform assessments, collect data with audit trails, and define sustainability targets and action plans.
- Achieved net zero Scope 1 and Scope 2 emissions at a site in the Netherlands by replacing natural gas with biogas, transitioning to 100% renewable energy, and implementing sustainability measures such as substituting diesel trucks with electric vehicles.
- Continued carbon reduction initiatives supported by operational optimisation, such as enhancing energy efficiency, employing flare reduction measures, and subscribing to green electricity tariffs and renewable energy certificates, resulting in a significant reduction of GHG emissions at Malaysian manufacturing assets.
03
Financial Resilience
- Strategically allocated financial resources to support identified sustainability initiatives, e.g. by directing capital towards projects aligned with our sustainability goals.
- Bolstered our internal monitoring and tracking mechanisms for investments and expenditures related to sustainability activities.
- Factored in internal carbon pricing as part of project FID's package to ensure the viability of growth projects under future carbon tax implementation.
- Incorporated carbon abatement plans as part of project FID's package, e.g. identifying carbon reduction opportunities through process optimisation and internal electricity generation for our advanced chemical recycling plant and MAn plant.
Our Achievements
Together.
Harnessing Potential.
Harnessing Potential.
PETRONAS Chemicals Group Berhad Sustainability Report 2024
