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Global

Sustainability

Fostering a Just Transition

The energy transition will vary from country to country but it must always be inclusive, aiming for broader societal progress. We are committed to advancing a just transition that respects human rights and ensures that stakeholders - especially our employees, suppliers, and communities - have access to equitable opportunities for socio-economic growth.​

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  • Health and Well-being
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Why It Is Important

Embedding human rights into all PETRONAS operations is fundamental to responsible practices. We manage human rights risks and impacts across our systems as any human rights breaches can adversely affect the well-being of workers and society, compromise health, safety and environment (HSE), and affect our social license to operate.

Our Approach

Amid the energy transition, we have amplified our focus on human rights. PETRONAS recognises human rights as a material business risk and is committed to aligning fully with international standards in all areas affecting people’s lives.

We strengthened our human rights practices through an updated Human Rights Policy, approved in 2023 and effective in implementation 1 April 2024. It is grounded in five key principles:

  1. Respect for internationally recognised human rights.
  2. Adoption of a risk-based approach to human rights due diligence.
  3. Access to effective grievance mechanisms and remedies.
  4. Implementation of appropriate governance for human rights policy and processes Groupwide.
  5. Commitment to maintaining disclosure and reporting across the Group.
     

We extend our commitment to respecting human rights beyond employees to those who we touch through our operations. Our most salient human rights issues are: labour and working conditions, community well-being, supply chain and responsibility security.

Labour and
Working
Conditions

  • Forced and trafficked labour in contractors’ and subcontractors’ workforce
  • Child labour
  • Condition of employment and work
  • Discrimination in hiring and contractual terms
  • Freedom of association and collective bargaining
  • Workers’ health and safety
  • Workers’ camp conditions

Community
Well-being

  • Community health and safety
  • Access to natural resources needs and livelihood
  • Land acquisition and involuntary resettlement with/without economic displacement
  • Indigenous Peoples
  • In-migration

Supply
Chain

  • Contractor/supplier performance related to labour and working conditions, community well-being and security

Responsible
Security

  • Use of force and conduct of third-party security
  • Provision of Human Rights training for staff and third-party security

 

To support our Human Rights Policy, we integrate controls throughout our systems and processes including risk management, procurement and supply chain, HSE, human resource management, business operations, legal and security. The following standards, policies and guidelines guide us:

Human rights tools applied in PETRONAS


List of external human rights tools applied in PETRONAS:

  • United Nations Guiding Principles (UNGPs) on Business and Human Rights
  • Fundamental Principles of the International Labour Organisation
  • UNGP Effectiveness criteria

List of internal human rights tools applied in PETRONAS:

Policies:

  • PETRONAS Human Rights Commitment
  • PETRONAS Code of Conduct and Business Ethics (CoBE)
  • PETRONAS Health, Safety and Environment Policy
  • PETRONAS Anti-Bribery and Corruption Policy and Guideline (ABC Manual)
  • PETRONAS Contractors Code of Conduct on Human Rights

Standards:

  • PETRONAS Technical Standard on Social Risk Assessment
  • PETRONAS Technical Standard on Grievance Mechanism
  • PETRONAS Security Management System

Guidelines:

  • PETRONAS Technical Guideline on Human Rights Due Diligence
  • PETRONAS Technical Guideline on Inndigenous Peoples Assessment
  • PETRONAS Technical Guideline on Cultural Heritage Assessment
  • PETRONAS Technical Guideline on Land Acquisition and Involuntary Resettlement

 

 

 

 
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Human Rights

This policy contains our overarching commitment to respect human rights, which is also reflected in other policies, frameworks, guidelines and processes throughout our business

Policy Statement

PETRONAS is committed to respecting all internationally recognised human rights, as set out in the International Bill of Human Rights and the International Labour Organization's Declaration on Fundamental Principles and Rights at Work, being guided by the United Nations Guiding Principles on Business and Human Rights (UNGPs) and the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct, complying with all applicable laws in the countries in which we operate.

Delivery

Respect and acknowledgement of internationally recognised human rights
We are committed to respecting the human rights of all people who are impacted by our activities, as well as respecting diversity and inclusion, elimination of all forms of discrimination as defined by applicable laws, modern slavery, child labour and human trafficking.

Adoption of a risk-based approach to human rights due diligence
Areas of material importance include labour and working conditions, supply chain, responsible security, communities' well-being and how they are impacted by, among other things, climate change, environmental issues and energy transition.

We apply a risk-based due diligence approach to identify, prevent, mitigate and address actual and potential adverse human rights impacts arising from activities performed across the organisation, and resulting directly from our operations, products or services, with a focus on significant risks and priority areas, and with input from engagement with relevant stakeholders.

Access to effective grievance mechanisms and remedies
We are committed to providing for and cooperating in the remediation of adverse human rights impacts that we identify we have caused or contributed to. Our grievance mechanisms are designed to be confidential, reasonably prompt, non-retaliatory and fair. We seek to ensure that our grievance mechanisms are accessible to all stakeholders, including within and outside our organisation.

Governance & Implementation

This policy is approved by the Board of Directors and its implementation is overseen by the leadership team. Human rights management in PETRONAS is guided by supporting documents, including our Code of Conduct and Business Ethics (CoBE) and our Contractors Code of Conduct on Human Rights (CoCHR)

This policy applies to every employee, director, and officer of PETRONAS. Third parties that may perform works or services for or on behalf of PETRONAS and joint venture companies in which PETRONAS is not a controlling stakeholder and associate companies of PETRONAS are encouraged to adopt this Policy of similar principles and standards.

Click here to view PETRONAS Human Rights Policy

 

 

Why It Is Important

We aim to create a safe working environment through a strong generative health, safety and environment (HSE) culture, ensuring everyone goes home safely. At enterprise level, robust security controls and practices safeguard us against physical and cyber threats for continued resilience. It propels uninterrupted business competitiveness and activities within an increasingly volatile and unpredictable operating landscape.

Our Approach

Our HSE policy is supported by our HSE Management System and HSE Mandatory Control Framework and is aligned with the International Organisation of Standardisation’s (ISO) 14001:2015 and ISO 45000:2018. It applies to operations where PETRONAS has operational control at all phases of work activities. A holistic security framework also enables progress amid coexistence with exposures ranging from protests to scams and cybercrimes, among others.

Click here for further details on our safety data.

 

 

 

 

Why It Is Important

Our people are our most valuable asset, and their well-being is our priority. We recognise that a healthy work-life balance is essential for our employees’ productivity and job satisfaction. Consequently, we encourage flexible work arrangements, provide access to wellness programmes and offer a range of other initiatives to promote employee well-being. By investing in our employees, we promote a more motivated and engaged workforce that is better equipped to contribute to our business success.

Our Approach

PETRONAS has taken a proactive step to prioritise employees’ wellness towards achieving the United Nations Sustainable Development Goal 3 on Good Health and Well-being via MESTIfit4health, which is our signature programme. MESTIfit4health covers five main elements of Move Right (physical activity), Eat Right (healthy eating habit), Sleep Right (adequate and quality sleeping habit), Think Right (mental health and well-being) and Individual Right (responsibility of making healthy living as a choice to manage health risks).

We take the time to understand the unique needs of our employees and introduce relevant programmes anchored on PETRONAS Cultural Beliefs and Shared Values to create an environment where they can thrive and help us achieve our strategic priorities. Our commitment to diversity and inclusion is guided by the PETRONAS Diversity and Inclusion (D&I) programmes, focusing on four key areas: gender, multinational, age and culture. Meanwhile, our Wellness Steering Committee oversees employee health and well-being, including mental health. We remain focused on creating an intentionally inclusive culture. We do this by reinforcing the right behaviours and mindset to sustain an environment that will help us progress and accelerate our ability to deliver on our commitments.

 

MESTIfit4health

MESTIfit4health covers five main elements of Move Right (physical activity), Eat Right (healthy eating habit), Sleep Right (adequate and quality sleeping habit), Think Right (mental health and well-being) and Individual Right (responsibility of making healthy living as a choice to manage health risks).

Flexible Working Arrangement (FlexiWork)

We introduced FlexiWork to allow our people to balance- between their professional and personal commitments, ultimately being their best selves while delivering for the organisation.

Employee Assistance Programme (EAP)

The EAP named myFriends was launched together with our MESTIFit4Health wellness programme in 2017 as part of PETRONAS’ effort to care for the welfare of our people by providing psychological interventions to build personal resilience, reduce emotional distress and destigmatise mental health issues.

Driving Diversity and Inclusion

Diverse ideas, views and backgrounds create a more progressive work environment which in turn delivers better outcomes. In creating an intentionally inclusive culture, we drive change through leadership and governance, communication, education and culture.

 

 

 

 

Why It Is Important

PETRONAS relies on a range of products and services throughout our value chain, sourced from a vast global network of suppliers. Ethical and sustainable supply chains aid in product development, safeguard workers’ rights, and enhance operational safety. We view our supply chain as an opportunity to contribute to positive socio-economic impacts. It allows us to channel financial capital into businesses, including Small and Medium Enterprises, empowering their growth in environmental protection.

Our Approach

We have zero tolerance towards non-compliance, including our environmental and social standards. We conduct capacity building and engagement sessions to build capability and strengthen the resilience of the industry. To this end, we have been collaborating with nine financial institutions on the Vendor Financing Programme (VFP) to facilitate access to funding for vendors since 2018. We have also introduced Special Oil and Gas Services and Equipment (OGSE) Financing which targets underserved vendors with less than five years of experience. In driving sustainability, we partnered with industry players and government agencies by participating in the National OGSE Industry Blueprint roadshows in the Klang Valley, Sabah and Sarawak. We also participated in strategic forums such as the National OGSE Sustainability Forum.

Partner Us | PETRONAS Global

 

 

 

 

Why It Is Important

We believe in creating long-term sustainable programmes and have developed a structured approach to maximise our social impact. Our internal framework and guideline steer our planning, implementation, measurement and reporting in ensuring the effectiveness of our social impact activation.

Our Approach

Our social impact programmes are centred on education, community well-being and development, and environmental stewardship. We have introduced a social impact brand that helps to communicate our activities – PETRONAS Powering Knowledge for Education, PETRONAS Uplifting Lives for Community Well-being and Development and PETRONAS Planting Tomorrow for Environment.

Growing Together: An Innovative Partnership With Malaysian Financial Institutions

Committed to creating Positive Social Impact on the growth of our OGSE vendors while supporting the nation’s OGSE industry, we have developed an innovative partnership with 9 financial institutions to facilitate Access to Financing (A2F) to our OGSE vendors. The programme assists the vendors to secure working capital and improve cash flow for sustainability via Vendor Financing Programme (VFP). To date, a total of RM1.3bil financing assistance has been approved for more than 235 applications by vendors since its commencement in May 2018.

Stretching The Purpose Of Unused Fabrics

In its pledge towards a sustainable future, Institut Teknologi Petroleum PETRONAS (INSTEP) launched the “Recycle Your Clothes” programme, collecting a massive 40 tonnes of unused textiles from the public.

The programme, which aim is two-pronged - to combat global warming issues and landfills overflow is part of INSTEP’s collective efforts to reduce carbon emissions that resonates with the PETRONAS Sustainability Approach, particularly the net zero carbon emissions (NZCE) aspiration by 2050.

The programme received an overwhelming response from the community, enabling the collection of 40 tonnes of unused textiles which include clothes, bags, belts, curtains, and blankets, in just five days instead of the actual plan five weeks. The collected textiles were sent to Life Line Clothing, a textile recycling company, for sorting and reproduction. The usable items will either be sold at second-hand clothing retails or exported to the developing countries in demand for inexpensive clothing, while the unusable ones will be reproduced as industrial wiping cloths or repurposed as blankets or processed into refused-derived fuel (RDF) for industries kilns.

The eventual profit from the sale and export of the recycled items goes to the National Cancer Council Malaysia (MAKNA). As of October 2021, the textiles collected have contributed to an avoided emission of 70,139kg CO2 equivalent (CO2-e) to the environment, reduced average greenhouse gas emission (GHG) in Malaysia by 3,340 days, and avoided landfill cost of RM5,890.15 and 397 full wheelie bins of waste.

Mussel Farming To Restore Livelihoods Of Indigenous Communities

PETRONAS launched the green mussel aquaculture project in April 2019 to restore and provide an enhanced and sustainable source of income for the indigenous Seletar community in Pengerang. Executed in two phases, the project involves 100 families from five villages: Kampung Pasir Salam in Ulu Tiram, Kampung Pasir Putih, Kampung Kuala Masai, Kampung Teluk Jawa and Kampung Teluk Kabong in the Pasir Gudang vicinity.

With the concerted effort and support by the local authorities, the Seletar community achieved their first harvest of mussels in October 2019 and gained additional income of RM200 per month for every farmer. As at early 2021, 30,000 collector traplines have been installed for mussel breeding.

Boosting Domestic Trade With “Love Local” Campaign

With COVID-19 heavily affecting SMEs and the tourism industry, PETRONAS Dagangan Berhad (PDB) organised the Love Local Campaign from September 2020 to February 2021 with the aim to rally Malaysians in support of local products and ultimately stimulate domestic consumption.

Since the launch, 50 local brands collaborated with the campaign to offer exciting deals in the areas of food and beverages, health and beauty products, hotels and tourism. PDB also promoted a range of local produced food and beverage offerings with customised shelves at 100 selected Kedai Mesra stories to support local SMEs.

Seeding Social Enterprises With Seed.Lab

In 2020, PETRONAS and Tata Consultancy Services (TCS) established the Social Enterprise Education Lab (SEEd.Lab), a 12-month end-to-end incubation programme where inspired youths would ideate, incubate and commercialise sustainable business solutions through digital and technology.
The programme, aimed at reducing youth unemployment in Malaysia, guided some 36 participants of its Cohort 1 through these essential stages of a startup through business and leadership mentoring, technical expertise for solution development, funding, and finally market testing and commercialisation. Three up-and-coming social enterprises were born as a result of SEEd.Lab:

  • Teman Malaysia, an elderly care companionship service provider

  • SOLVNEX, a machine-learning platform to open doors and create opportunities for gig professionals

  • Foodlab, a cloud kitchen that aims to help food entrepreneurs to scale up sustainably

Cohort 2 is expected to kickstart in the second half of 2021 to challenge more youths to advance the change they wish to see in the society and create a multiplier effect in the community.

Go to SEEd.Lab Website

Petronita Supports Community’s Mental Well-Being

PETRONITA has embarked on a collaboration with the Malaysian Mental Health Association (MMHA) on a mental health first aid youth programme for secondary schools. The programme seeks to educate teachers on ways to tackle adolescents with mental health issues, whom in most cases are the first responders for students in schools. The pilot programme will involve 100 secondary school counsellors in Kuala Lumpur. It will be funded by PETRONITA and supported by the Kuala Lumpur Education Department. The first mental health first aid training session took place in January 2020, involving 25 teachers at the National Council of Welfare and Social Development Centre in Bandar Baru Sentul.

PETRONITA, an association of Wives and Women Staff of PETRONAS, is a charitable entity which has been continuously committed towards mental health and well-being. Last year, the organisation contributed RM164,000 from the proceeds of its charity programme “Orchid Run & Ride” to Mental Illness Awareness and Support Associations (MIASA).

The donations supported the establishment of MIASA’s new activity and crisis management centre in Petaling Jaya, also known as “The Orchid Clubhouse”. The centre was launched on 10th September 2020 to aid more patients and caregivers.

Strengthening STEM in Malaysia

Since 1975, our PETRONAS Education Sponsorship Programme (PESP) has brought education opportunities close to 37,000 eager young minds across Malaysia and the globe. We award sponsorships to deserving students looking to pursue tertiary education in fields related to oil and gas at reputable institutions of higher learning in Malaysia and internationally. Our aim is to open doors for young talents in their pursuit of knowledge, self-enrichment and brighter futures. We continue to focus on nurturing the right talent who will ultimately contribute to the growth of our organisation, industry and nation. We also focus on strengthening our teachers’ capabilities and improving the quality of their teaching through Program Duta Guru, an initiative by Yayasan PETRONAS in partnership with Ministry of Education (MOE) via Pusat STEM Negara Malaysia.

Uplifting B40 Agro-Preneurs - Multiplier Impacts For Nation-Building

In a collaborative partnership with PETRONAS, Agrobank will be offering micro-financing worth up to RM100 million to B40 micro-entrepreneurs in the agricultural and agro-based sectors over a period of 5 years. The government-owned bank has over 11 micro-financing programmes that support the agricultural sector, such as cultivation of paddy, oil palm, pineapple and dairy products.It is estimated that the programme will benefit about 3,000 recipients through financing facilities offered by Agrobank, which is in line with PETRONAS’ Statement of Purpose to be a progressive energy and solutions partner, enriching lives for a sustainable future as well as supporting United Nations Sustainable Development Goals, especially in creating Decent Work and Economic Growth.

Making Community Well-being a Priority in Iraq

PETRONAS has been actively involved in Corporate Social Responsibility (CSR) and welfare services programmes in Garraf Contract Area (GCA) since 2013.

These programmes are designed to provide equal access to basic needs, spur economic growth and improve the quality of life for the surrounding communities. They include infrastructure development, school refurbishments, uplifting healthcare facilities and the “Water for Life” Reverse Osmosis (RO) water sanitation facilities.

The “Water for Life” programme has reached tens of thousands in the Garraf Contract Area through three Reverse Osmosis (RO) water stations. In 2020, three more facilities have been completed and handed over to the community, and despite the present challenges, more facilities are expected to be completed in the near future.

Access to clean and potable water, allows the community to devote more of their time and energy for productive activities like education and the economy, to improve the quality of their lives.

Other initiatives include reliefs in the form of medical equipment such as cots, blood centrifuges and compressor nebulisers for the Al-Fajr Clinic in Al-Farj District, Thi-Qar province, Iraq.

In implementing these programmes, the Group through PETRONAS Carigali Iraq Holding B.V. (PCIHBV) has been working closely with various relevant stakeholders including the Ministry of Oil, Thi Qar Oil Company, Provincial, Districts & Sub- district government authorities as well as community leaders.

Empowering Businesses To Empower The Nation

Since 1993, we have been empowering entrepreneurs through our Vendor Development Programme (VDP). With an 85% Vendor Success Rate, we developed a total of 108 Vendors, which has further created global players worth billions of dollars. The success of VDP has inspired other governments and companies to create their own accelerator programmes. Recently, PETRONAS has further established two new schemes to boost the capabilities of small local businesses in the oil and gas sector in Malaysia, namely VDPInnoTech (VDP Innovation & Technology) and VDPx, a collaboration with our PSC partners which has resulted in 46 of them joining as Anchors.

World-class Educational and Training Institutions

With the aim to create a pool of highly knowledgeable and skilled workforce to support the organisation’s growth as well as Malaysia’s energy industry, we provide world-class academic and training services through various educational institutions under our umbrella. We also contribute towards nation building by focusing on teaching, research and development, and innovation. Universiti Teknologi PETRONAS (UTP) has become one of Malaysia’s leading institutions of higher learning, providing students with opportunities to pursue knowledge, expertise, and advancement in the fields of engineering, science, technology and sustainable business solutions to emerging global challenges. Institut Teknologi Petroleum PETRONAS (INSTEP) is a state-of-the-art technical training institute owned by PETRONAS Technical Training Sdn Bhd (PTTSB), set up to accelerate the development of human capital in the oil and gas industry through experiential learning. Established in 1981, INSTEP has a strong track record of empowering capability through customised programmes, coupled with world-class facilities and industry-experienced and qualified instructors.

Rural Students Brought Closer To Schools

The construction of hostels for Sekolah Kebangsaan Balambangan Banggi in Pulau Balambangan, Sabah and Sekolah Kebangsaan Orang Kaya Muda Pakeri in Paloh, Sarawak has provided kids living in rural areas with a much needed access to education. The Asrama Harian Luar Bandar (AHLB) project provides the students with facilities such as hostels and dining halls. Without these facilities, they would have to travel across rivers, jungles or the sea every day just to attend classes. Yayasan PETRONAS, our PETRONAS Corporate Social Responsibility arm, assisted further by providing furniture and other equipment for the newly built hostels.

Empowering Livelihoods with Clean Water

In collaboration with Malaysian Nature Society, we created Water For Life, a programme that builds gravity-based water systems in remote villages to provide access to clean water. By making this precious resource readily available, villagers across Malaysia can enjoy a better quality of life and improved economic well-being. The initiative by PETRONAS Dagangan Berhad (PDB) supports Yayasan PETRONAS’s mission to enrich lives for a sustainable future and has benefited 16 villages across 12 states, touching the lives of over 8,600 residents since 2013. Besides ensuring access to clean water through the installation of water pipes, tanks and filtration systems and expansion of dams, Water For Life also educates the residents on water conservation and health risks related to unclean water consumption.

Thank You Healthcare Heroes

We are constantly working with government agencies both locally and abroad to provide support and relief to communities in need. To help combat the COVID-19 pandemic in Malaysia, we contributed RM20 million worth of medical equipment and supplies to help hospitals and healthcare frontliners. This contribution includes ventilators, ICU hospital beds and mattresses, thermal imaging cameras, virus test system, and Personal Protective Equipment (PPE). Hand sanitisers were also distributed to schools and senior citizens at selected homes. This initiative by Yayasan PETRONAS, our Corporate Social Responsibility arm, reflects our commitment towards improving the well-being of society.

Our Pledge to Battle Cancer

We believe that social progress must be inclusive, and that a community cannot sustain socio-economic growth if its people are encumbered with a debilitating disease such as cancer. Through our Corporate Social Responsibility arm, Yayasan PETRONAS, we pledged RM8 million to Cancer Research Malaysia (CRM) to support cutting-edge research in hereditary cancers among Asians. Our hope is that this partnership with CRM will continue to place Malaysia in the global spotlight for cancer research as it opens doors for more collaboration with global top scientists, while nurturing the next generation of Malaysian cancer researchers.

Building Hope Through International Education

Under our PETRONAS Education Sponsorship Programme (PESP), we create hope for a nation by providing South Sudanese students with the skills and education needed to help rebuild their beloved country and create a brighter future. With the recent awarding of 10 new scholarships in 2019, the number of South Sudanese sponsored students has increased to 97 since the programme began. Through the awarding of scholarships to deserving young minds, we ensure continued development of human and technical resources for the energy industry.

Laying the Foundation for a Just Energy Transition

In collaboration with PwC Malaysia, PETRONAS conducted a series of roundtable sessions in 2023 and the contents captured in a report. This report will serve as a key resource, raising public awareness, fostering a deeper understanding of key themes, and encouraging stakeholders to actively shape a common view of what a just transition means for Malaysia and its energy sector.

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