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Sustainability

Thriving with Nature

Nature and biodiversity are essential for sustaining life on Earth, and we recognise the impact and dependency of our operations on them. Therefore, we are committed to use natural resources responsibly, promote circularity practices and address nature and biodiversity loss. We will engage in practices that restore, protect, and conserve ecosystems in Malaysia and in the countries where we operate.

  • Nature and Biodiversity
  • Circular Economy
  • Environmental Management
  • Stories

Why It Is Important

Biodiversity is the total sum of life on Earth comprising flora, fauna, microorganisms, ecosystems and habitats as well as the interdependent relationships between all of them. We depend on this web of life, both terrestrial and marine, to gain access to fresh water, food, medicine and a stable climate – all of which help sustain livelihoods, human health and economies.

An inability to conserve and protect biodiversity will adversely affect the benefits it provides. For example, forests and wetlands are essential in efforts to combat climate change by sequestering carbon while providing a habitat for various species, protecting coastlines and supporting surrounding communities as sources of livelihood.

PETRONAS also depends on biodiversity and ecosystem services such as water, land and marine.

As such, we are proactively working to protect and, where necessary, reversing biodiversity loss to avoid irreversible damage, which may impact our ability to deliver on our business goals and Net Zero Carbon Emissions by 2050 Pathway.

 

Our Approach

In 2022, PETRONAS established our Position on Nature and Biodiversity (the Position) to improve oversight on our nature and biodiversity footprint at enterprise level and strengthen our ability to delivery our NZCE 2050 Pathway. In establishing the Position, PETRONAS was guided by various international agreements and national policies such as the Convention on Biological Diversity (CBD) and Malaysia’s National Policy on Biological Diversity 2016-2025, as well as industry best practices from organisations such as Ipieca (the global oil and gas association for advancing environmental and social performance across the energy transition), and the World Business Council for Sustainable Development (WBCSD).

The Position consists of five areas of action that demonstrate visible leadership in nature and biodiversity conservation, harnessing the right expertise and resources to positively impact the nation, the ASEAN region, and other countries where we operate.

Our Five Areas of Actions

 

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* Outstanding Universal Values, which means cultural and/or natural significance which is so exceptional as to transcend national boundaries and to be of common importance for present and future generations of all humanity.

Will be determined using Biodiversity and Ecosystem Services (BES) risk profiling and analysis using the Integrated Biodiversity Assessment Tool (IBAT)
** [Source: UNESCO World Heritage Centre - Compendium]

We also apply a risk-based approach in the implementation of the position. In 2023, we commenced Biodiversity and Ecosystem (BES) risk profiling for all our operational sites, supported by the Integrated Biodiversity Assessment Tool (IBAT) and PETRONAS risk assessment matrix. The objective of this activity is to identify assets that have a risk categorisation of “Very High” and “High”. The assessment results will be followed by site visits to validate the risk profiling and serve as a basis for the development of Biodiversity Action Plans for relevant locations.

 

Examples of PETRONAS' biodiversity conservation efforts around the world

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Why It Is Important

A circular economy is a systemic approach that moves away from a linear (take-make-waste) economy to one that extends the life cycle of material and resources, ultimately reducing waste to a minimum.

For PETRONAS, circular economy is integral to our Sustainability efforts and is embedded across the group to:

  1. Enable a low waste future
  2. Steward natural resources
  3. Minimise our carbon footprint while creating value

We aim to contribute to a circular future, providing impactful solutions to our stakeholders and the betterment of our society through innovation and collaboration.

Five approaches to adopting Circular Economy at PETRONAS

PETRONAS’ circular economy is integral to our approach to sustainability, which is embedded across the Group to create value. As we enable a low-waste future, steward natural resources and minimise our carbon footprint across PETRONAS, there are circular economy projects of varying sizes and maturity levels.

Below are the five approaches to adopting Circular Economy at PETRONAS:

Circular Carbon

Closed loop system involving 4Rs (reduce, reuse, recycle, remove) to manage carbon emissions​

Bio Solutions

The use of bio-based inputs or products (regenerate) to reduce dependency on finite materials

Repurpose & Reuse

Lifecycle extension of materials, resources and/or facilities to their original state or to a new purpose to reduce waste

Waste to Products

The change of waste to base materials or other products to create new revenue lines

Sharing Model

Optimisation of resources via shared platform to increase cost efficiency and reduce waste

Why It Is Important

Managing environmental quality is essential to the preservation of our planet and the protection of our natural ecosystem. Irresponsible business activities can have severe consequences, such as oil spills, air pollution and resource scarcity. These consequences not only affect the health and well-being of humans, but also pose a threat to biodiversity and the sustainability of our planet. Managing environmental quality involves responsible resource utilisation, pollution prevention and sustainable practices which can help mitigate these environmental consequences.

Our Approach

At PETRONAS, we recognise the important role we have in managing our relationship with the environment. Throughout our operations and business, we implement various assessments, practices and site-specific actionable plans to protect the environment.

In our commitment to environmental stewardship, in addition to greenhouse gas emissions and waste, PETRONAS also focuses its efforts on other areas of significant impact, namely other air emissions, water management, oil spill prevention and decommissioning.

Click here for further details on our environmental management data.

This work is guided by international principles, frameworks and standards, including:

  • Host country standards for the design and operation of pollution prevention and control equipment
  • International Finance Corporation Group Environmental, Health and Safety Guidelines
  • Health and Safety Guidelines
  • World Resource Institute’s Aqueduct Water Stress Atlas
  • Decommissioning Option Assessment

 

Harnessing the Power of the Sun

PETRONAS entered into the largest long-term Power Purchase Agreement (PPA) for solar energy in Malaysia with Lotus Stores (formerly known as TESCO) in July 2020. The 20-year PPA entails the design, installation, operation and maintenance of solar photovoltaic panels for 15 selected Lotus Stores in the country. Supplied by NE Suria Satu Sdn Bhd, a joint venture between PETRONAS and NEFIN Group, the panels are expected to collectively generate some 18 Gigawatt-hours of clean energy per year, enabling Lotus Stores to reduce more than 12,500 tonnes of carbon emissions. As at the third quarter of 2020, installation works have been completed at 13 Lotus Stores.

Conserving Hawksbill Sea Turtles in Mexico

PETRONAS’ subsidiary PC Carigali Mexico Operations partnered with Grupo Ecologista Quelonios (GEQ), a non-profit organisation dedicated to the protection and preservation of endangered Hawksbill sea turtles in Punta Xen Centre, Champoton, Campeche, to facilitate the rehabilitation and improvement of the centre’s facilities.

 The partnership will cover the rehabilitation of the main building to improve workers’ accommodations and the warehouse to store equipment and materials for the conservation efforts. It will also help create a larger and more protected nesting area for the turtle eggs and an improved shelter to protect baby turtles prior to their release to the sea.

 As of September 2020, a total of 167,288 turtles have been safely released to the sea, a 16 per cent increase from the same period in 2019, a rewarding result of the dedication from the project team.

Reducing Energy Consumption by 407,880 kWh Per Year Of Indigenous Communities

To support the Malaysia’s National Agenda on climate change and overall emission reduction target, INSTEP has collaborated with TNB Energy Services Sdn Bhd (TNBES) to reduce energy consumption and costs via the CAPEXLESS High Efficiency Equipment implementation. The MAGELLAN project is piloted at INSTEP and involves retrofitting light emitting diode (LED) and high mast lighting in its non-process areas. By doing so, INSTEP is expected to save approximately 407,880 kWh per year of energy consumption, thus reducing carbon dioxide emissions by 283 tonnes.

Composting 15,000 kgs of Food Waste Per Year

Institut Teknologi Petroleum PETRONAS (INSTEP) is implementing the PETRONAS Group’s first food composting technology with the installation of an on-campus composter house, expected to compost around 15,000 kgs of food waste annually. Food composting closes the loop of sustainability and helps achieve zero food waste by transforming it into bio organic compost or fertiliser used for planting and greening of the campus.

Sustainability as the Core of PETRONAS New Leadership Campus Project

The PETRONAS New Leadership Campus Project team is responding to the pledge towards a sustainable future, starting with its main construction site office, also known as The Cubic. The project’s aspiration to achieve double-platinum certification by Green Building Index (GBI) and LEED USA resonate strongly with the PETRONAS Sustainability Approach. The journey towards Platinum certification is further solidified by unlocking another milestone through achieving the Platinum at Design Stage by GBI Accreditation Panel.

Sustainable building features are embedded in the thought design of The Cubic. It is built with refurbished intersected container cabins to facilitate air movements and equipped with Photovoltaic Solar Panels, which can cater to the energy demand of 73 KWp. In partnership with VERITAS, a multi-disciplinary architectural design firm, structures such as the workstations are outfitted with salvaged and reused items and materials. The Cubic is also equipped with a rainwater harvesting system for lavatory and irrigation usage. 

Sustainability efforts are also incorporated into the scope of works, such as the emphasis on “3R – Reduce, Reuse and Recycle” on materials used, communications of grievance procedures in various languages to workers, engaging with the local community on the operation of canteens, and also engaging in sporting activities with consultants and contractors.

The purpose of the Campus is to “Inspire Leaders to Grow.” With featured spaces that encourage social collaborations and innovative learning experience in support of PETRONAS work culture. It also embodies the sustainability essence in support of PETRONAS Sustainability Approach.

Increasing Access to Cleaner Energy

As a fully-integrated global LNG player, we create value for our customers by introducing tailored and sustainable solutions to meet their energy needs. We pioneered a domestic alliance of LNG bunkering service providers through our collaboration with Avenir LNG Ltd to promote LNG as a marine fuel of choice and to provide LNG ship-to-ship break-bulking services for customers with smaller energy needs. In 2020, we established the Virtual Pipeline System, a solution to transport LNG via trucks to off-grid customers located away from the main pipeline, as well as to small-scale customers. These solutions work together to make LNG, the cleaner fuel, more accessible to the world. So that together, we can lower carbon emissions.

Collaborating for New Plastics Economy

Through our petrochemical arm, PETRONAS Chemicals Sdn Bhd (PCG), we are charting sustainable growth by balancing business goals with environmental needs. To further strengthen our sustainability approach, PCG has introduced the New Plastics Economy (NPE) initiative, a holistic programme aimed at transforming plastic waste into valuable resources to be recycled back into the circular economy. Adopting a four-pronged approach encompassing education, innovation, infrastructure, and clean-up under its NPE programme, PCG seeks to impart the right knowledge and behaviour, collaborate for a sustainable waste recovery system, and develop solutions to the growing plastic pollution problems in Malaysia. PCG is also taking the leadership role in shaping the future of Malaysia’s circular economy initiative spearheaded by the Ministry of Environment and supported by Malaysia Plastic Pact members, including the Malaysian Plastic Manufacturers Association (MPMA) and Malaysian Petrochemicals Associations (MPA).

30,000 Hectares of Rainforest Conserved

In partnership with Yayasan Sabah Group, we have invested over RM83 million towards the conservation of Imbak Canyon since 2010. Home to 82 animal species, 242 bird species, and over 50 species of medicinal plants, Imbak Canyon is considered a Class-1 forest reserve. Its pristine condition also makes it suitable for research into environmentally sustainable solutions such as carbon sequestration. We have also set up the Imbak Canyon Conservation Area (ICCA), which is involved in research, reforestation, public education and the training of future stewards.

1,500 Reef Balls Nurture Marine Biodiversity

Through the Biodiversity, Environmental, and Conservation (BEACON) project, PETRONAS (through MLNG Sdn Bhd) and Sarawak Forestry Corporation deployed 1,500 units of artificial reef balls across an area of over 120 km2 in Similajau National Park waters off the coast of Bintulu, Sarawak from 2013 to 2015. They protect the critical habitats of endangered marine life from illegal fishing trawler activities. The reef balls mimic limestone and have helped coral reefs to regenerate and they are now 100% covered by more than 10 hard coral species, becoming the home for cuttlefish, crabs, shrimps, sea slugs, snails, barnacles and other various species of fishes. Moreover, the effort has seen the return of the Green turtles to nest in Similajau National Park after a seven-year absence.

Apart from bolstering fish stocks and sustaining the livelihoods for local fishermen, the BEACON project also aims to educate the general public on the importance of preserving biodiversity. This is done through programmes such as reef cleaning and regular beach clean–ups with stakeholders and local communities

11,000 sqm of Mangrove Forest Brought to Life

Our EcoCare Education Centre (EEC) programme spearheaded a Mangrove Conservation initiative, which has become an on-going activity among the local community. The effort is vital in preserving the rich biodiversity of mangrove swamps in the areas of our plant operations and a spirit of volunteerism in sustainable activities.

Set up in 2013, EEC is the first environmental centre on the east coast of Peninsular Malaysia. It features displays, exhibits and information relating to the Kerteh River ecosystem. A collaboration with Malaysian Nature Society (MNS), EEC has become a popular venue for researchers as well as university students undergoing internship. In 2019, over 4,000 visitors have participated in our initiative to plant over 6,000 trees covering an area spanning 2,500 sqm along Sungai Kerteh, Terengganu


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