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- Human Rights
- Safety and Security
- Health and Well-being
- Supply Chain
- Social Impact
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:
- Respect for internationally recognised human rights.
- Adoption of a risk-based approach to human rights due diligence.
- Access to effective grievance mechanisms and remedies.
- Implementation of appropriate governance for human rights policy and processes Groupwide.
- 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
0Human 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.
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.
Three key areas of social impact investment
×Education
Powering Knowledge
PETRONAS Powering Knowledge is our commitment to champion the pursuit of knowledge among students and educators. We support their quest for quality education and expertise and are devoted to empowering them to strive for progress and positively impact a rapidly changing world.
×Community Well-Being And Development
Uplifting Lives
PETRONAS Uplifting Lives is our commitment to provide access to essential resources for underserved communities to enhance their living standards. We are devoted to our best efforts in empowering the communities to reach their full potential and create positive social impact and change.
×Environment
Planting Tomorrow
PETRONAS Planting Tomorrow is our commitment to champion awareness and promote the importance of biodiversity conservation. We support this through our education programmes on sustainable living. reforestation and rehabilitation activities, including mangrove planting and replenishing marine and freshwater ecosystems. We empower communities to contribute towards a healthier planet.
×Water Management
We focus on water accounting, understanding water availability and enhancing water utilisation efficiency. Our policies, standards and practices are geared towards effective freshwater resource use and the responsible stewardship of water resources through water circularity practices with regular tracking in water-stressed areas.
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