PETRONAS: TO PURSUE PROFITABLE GROWTH WITH NET ZERO CARBON

EMISSIONS.

Abstract

This paper will share the basic knowledge of greenhouse gases (GHG), carbon
footprint and its measurement based on Scopes 1, 2, and 3, carbon offset, life cycle thinking,
as well as Just Transition. These basic knowledges are important to introduce the
PETRONAS’s statement of purpose which is “A progressive energy and solutions partner
enriching lives for a sustainable future”. Through this statement of purpose, PETRONAS
says that they recognize the responsibility to deliver the energy and solutions in a sustainable
manner. PETRONAS seeks to advance their strategy into reducing emissions, continuing
from their original commitment to the lenses of four sustainability namely Continued Value
Creation, Safeguard the Environment, Positive Social Impact, as well as Responsible
Governance. The motivation for the PETRONAS’s new aspiration to achieve “Net Zero
Carbon Emissions by 2050” has been announced by the PETRONAS’s presidents in October
2020 as a response to the climate change.

PETRONAS is committed to pursue profitable growth with net zero carbon emissions
aspiration with 3 strategies namely increase Scope 1 and 2 emissions-reduction efforts as they
are the most commonly reported GHG emissions, scale-up renewables and low carbon
solutions, as well as optimize the use of forest-based carbon offsets. The four-building blocks
of operational excellence, low carbon energy solutions, accelerate technology development
and innovation, and offset carbon emissions to balance towards net zero are determined as the
levers for Petronas to achieve net zero carbon emissions. PETRONAS believed that both
business and society can be balanced if they take the responsibility to reduce the carbon
emissions.

The ultimate goal is to achieve Just Transition, where PETRONAS will continue to
contribute to the capability development of employees, contractors, as well as the
communities by making sure that the opportunities of new socio-economic communities can
be generated and benefited. The Just Transition from good condition of labor and work,
protecting natural environment, and towards better life quality will be the ultimate goals of
energy transition moving towards net zero carbon emissions.

The sustainability agenda and long-term business aspiration of PETRONAS will be

shared to shareholders through this paper.