Investing in growthInnovating for sustainability
AramcoSustainability Report 2023

About this report

We are Aramco, oneof the world’s largest
integrated energy andchemicals companies
Our approach to sustainability reporting
In our third Sustainability Report, we present how we
integrate sustainability within our corporate strategy
and operations; the material sustainability issues that
impact our business and stakeholders; a summary of
key initiatives; and our sustainability performance
during 2023.

Sustainability for Aramco is about being a responsible
corporate citizen environmentally, socially andeconomically. This is underpinned by our four focus
areas (Climate change and the energy transition,
Safe operations and people development, Minimizing
environmental impact, and Growing societal value),
where we elaborate on what sustainability means
for Aramco and set our relevant ambitions, targets
and metrics.
Reporting standards
The following sections of this report have been
prepared with reference to and/or guidance fromthe following frameworks, standards, and guidelines:• Reporting guidelines for our Environment,
Social and Governance (ESG) disclosures: Ipieca;• For measuring and reporting our greenhouse gas(GHG) emissions: Greenhouse Gas Protocol; and• For reporting our health and safety performance
metrics: Occupational Safety and Health Administration(OSHA) Standards and the American Petroleum
Institute Recommended Practices.
Reporting boundaries, scope, and basisof preparation
This report contains data for the full year 2023
(January 1 – December 31). Where available,
we have compared the 2023 performance with
2022 and 2021 data.

For clarity and transparency, the specific reporting
boundaries of each metric for 2023, 2022, and 2021
data have been noted in detail on page 100 in the
Data section of this report.
Acquisitions made during 2023 will not be reportable
until after the first full year of operation. Therefore,
acquisitions made during 2023 will be reportablefrom FY2025 onwards. Any wholly-owned sites thatare not fully operational are excluded from reporting
until effective data controls and systems are in place.

Our vision

Aramco’s vision is to be the world’s preeminent
integrated energy and chemicals company, operating
in a safe, sustainable, and reliable manner.

Our mission

Aramco strives to provide reliable, affordable, andmore sustainable energy to communities around theworld, and to deliver value to its shareholders throughbusiness cycles by maintaining its preeminence in oil
and gas production and its leading position inchemicals, aiming to capture value across the energy
value chain and profitably growing its portfolio.

Overview		 		2023 at a glance				02
Our history				06Chairman’s message 			
08
President and CEO’s message		
09
Value of oil and gas			
10
Positioning Aramco for the future		12
Our approach to sustainability		
16
Our stakeholder engagement		20
Governance			94

Data					Our metrics				102Abbreviations, terms, and glossary		
107
Forward-looking statements		
112

Our sustainability focus areas
Climate change andthe energy transition

The basis of preparation on how we measure andreport on the sustainability performance metrics
that undergo external independent assurance canbe found online.
SABIC and S-Oil’s sustainability data are not in thescope of this report. Both subsidiaries are publicly
listed and issue separate annual sustainability reports.

Page

Internal controls and data validation
All figures in this report represent the latest
available, internally validated data, unless specificallyreferenced. Some of the totals presented may reflect
the rounding-down or rounding-up of subtotals.

22

Minimizing
environmental impact

Aramco’s internal reporting systems capture and record
the data used in this report. All data has been subject
to internal validation, including data reviews by thereporting businesses and internal subject matter experts.
Third-party limited assurance
Third-party limited assurance has been sought
against various key performance metrics, including
GHG emissions, in accordance with the revised
International Standard on Assurance Engagements
3000 (ISAE 3000 revised). Data that has undergone
assurance has been referenced throughout thereport. More information on assured data and theassurance statements can be found online.

Contents

Page

Investors

Assured data

Annual Report 2023

Our 2023
Sustainability Report

We present our approach to: integrating sustainability
within our corporate strategy and operations.
Download our report (PDF)

Sustainability quick readOur 2023
Sustainability
ReportWe present our approach to:integrating sustainability
within our corporate strategy
and operations.
Download the report (PDF)
Sustainability quick read64** External limited assurance symbol
The figures within this report have undergone external
limited assurance in accordance to the ISAE 3000
(revised). The relevant information are marked withthis symbol.

Safe operations andpeople development

Page

50

Growingsocietal value

Page

78

J The assurance reports canbe found online on the
Sustainability section of
our website.

Cover image: Shaybah is a prize-winning example of our ability to plan for and meet global energy demand, and do it in harmony with the natural environment.
Shaybah’s reserves alone can supply the entire world’s oil requirements for over 160 days (and Europe’s for over two years).
Learn more about Shaybah online
ARAMCO | SUSTAINABILITY REPORT 2023

01

OVERVIEW

Our business performance
Operations

251.2
59.6

Net chemicals production capacity10(MMtpa)Relationships
External stakeholders4• Suppliers• Governments• Investors

12.0

Maximum sustainable capacity(MMbpd)4.1

Net refining capacity(MMbpd)GROWINGSOCIETAL VALUE

GOVERNANCE

DATA

$545

Average capital employed(billion)

50+

Countries of operations

Net income(billion)

9.6

**

54.4

Scope 1 emissions(MMtCO2e)**1.1Power supplied to the national grid
(gigawatts)

Relationships

65.0

iktva procurement spend in-Kingdom
(%)

•
•
•
•
•

Refined products
Base oils and lubricantsElectricity
Blue ammonia
Nonmetallics

99.8
Reliability6
(%)

13.0

Scope 2 emissions5(MMtCO2e)
**

89.9

**

Payments to Saudi and foreign
governments7(billion)

SAR 769** This figure has undergone/is undergoing external limited assurance in accordance tothe ISAE 3000 (revised). Upon completion of assurance, theassurance report can befound online on the Sustainability section of our website.
1. Hydrocarbon reserves of Saudi Arabian Oil Company (the Company) as at
December 31, 2023, under the Concession agreement.
ARAMCO | SUSTAINABILITY REPORT 2023

SAR 455$102

Dividends paid8(billion)

SAR 381

Human

0.018

Lost time injuries/illnesses rate
(per 200,000 work hours)

15

94

Nationalities$101

Free cash flow 9(billion)**

Freshwater consumption(million m3)

$205

$121

SAR 103

SAR 2,043

73,311

Products produced
Crude oil
Gas
NGL
Condensate
Chemicals

3Company employees

Financial$27
Net cash3(billion)

SAR 158

Operations

Upstream carbon intensity5(kg CO2e/boe)

02

$42

Capital expenditure2(billion)

Human

Outcomes and impacts
•
•
•
•
•

MINIMIZINGENVIRONMENTAL
IMPACT

Financial

Total hydrocarbon reserves1(billion boe)

• Customers• Partners• Communities

SAFE OPERATIONSAND PEOPLE
DEVELOPMENT

A year of delivering on our strategy

2023 at a glance

Inputs

CLIMATE CHANGE
AND THE ENERGY
TRANSITION

Tier 1 process safety events

SAR 380Return on Average Capital
Employed (ROACE)9
(%)

22.5

0.042

Total recordable case rate
(per 200,000 work hours)

Liquids-to-chemicals expansion
Aramco and its affiliate, S-Oil, commenced
construction of the $7 billion Shaheen project inSouth Korea to develop one of the world’s largest
refinery-integrated petrochemical steam crackers.

MidOcean Energy acquisition
Aramco entered the global LNG business by signing adefinitive agreement in September 2023 to acquire aminority stake in MidOcean, enabling Aramco to tap
into international LNG opportunities.

This represents a significant step forward in our
liquids-to-chemicals expansion.

Oil from plastic waste
Aramco, TotalEnergies, and SABIC have for the firsttime in the Middle East and North Africa successfully
converted oil derived from plastic waste into
International Sustainability and Carbon Certification(ISCC+) certified circular polymers.

Valvoline Inc.’s acquisition
Aramco completed the $2.76 billion acquisitionof Valvoline Inc.’s global products business,accelerating the company’s vision to become
one of the world’s preeminent integrated energy
and chemicals companies.
Developing new ammonia cracking technology
Signed an agreement with Linde Engineering tojointly build a demonstration plant to test a newammonia cracking technology in Germany.
Three blue ammonia shipments
Aramco delivered three shipments of accredited,blue ammonia through its affiliates ATC and SABIC
Agri-Nutrients.

Investment in Rongsheng Petrochemicals
A $3.4 billion deal advances Aramco’s liquids-tochemicals strategy, increasing our presence in China.
Siemens Direct Air Capture (DAC) partnership
Aramco collaborated with Siemens Energy to develop
a DAC test unit in Dhahran that could pave the way
for a larger plant.

First-of-its-kind synthetic fuel demonstration plant
Aramco and ENOWA to develop first-of-its-kindsynthetic fuel demonstration plant.

3

Fatalities**

2. Capital expenditures do not include external investments.
3. For definition of average capital employed and net cash, refer to “Non-IFRS measuresreconciliations and definitions" section on page 36 in the Aramco Annual Report 2023.
4. Refer to page 20 for more information on our stakeholders and how we work with them.
5. In 2023, along with the location-based methodology we have reported to date, we adopted
the market-based methodology to calculate and report on our GHG emissions to avoid
double counting of emissions associated with wheeled power, in line with GHG Protocol
Scope 2 Guidance. Therefore, the figures reported for upstream carbon intensity and Scope
2 emissions are market-based. For 2023, the location-based figures for upstream carbon
intensity and Scope 2 emissions are 10.7 kg CO2e/boe and 18.2 MMtCO2e, respectively. For
more information on our GHG methodology, please refer to page 30 of this report.
6. Applies to Saudi Arabian Oil Company (the Company).
7. Includes income taxes, royalties, and dividends to the Saudi government.
8. Dividends paid includes dividends to shareholders and non-controlling interests in subsidiaries.
9. Non-IFRS measure: refer to “Non-IFRS measures reconciliations and definitions"section on page 36 in the Aramco Annual Report 2023.
10. Excludes SABIC Agri-Nutrients and Metals (Hadeed) businesses.

Investment in solar projects
Entered into a shareholders’ agreement to develop
two photovoltaic solar projects in Al Shuaibah witha planned combined capacity of 2.7 GW.

Powering engines through lower-carbon fuels
Aramco and Stellantis collaboration finds Aramcoprovided synthetic fuel compatible with 24 engine
families in Europe. The use of lower-carbon synthetic
fuel can reduce CO2 emissions from existing vehicles.

World Economic Forum (WEF) Global Lighthouse
Yanbu Refinery becomes fourth Aramco facility
to receive the WEF Global Lighthouse Network status.

ARAMCO | SUSTAINABILITY REPORT 2023

03

Our sustainability performance

OVERVIEW

CLIMATE CHANGE
AND THE ENERGY
TRANSITIONSAFE OPERATIONSAND PEOPLE
DEVELOPMENTMINIMIZINGENVIRONMENTAL
IMPACTGROWINGSOCIETAL VALUE

GOVERNANCE

DATA

2023 at a glance

Our focus areas
Aramco has an important role in helping the world
navigate the energy transition. What we do as a
global community will determine the legacy we leave
for future generations.
Our intention is to be a part of the solution thatcreates a stable energy environment that fosters

Climate change andthe energy transition

We aim to provide affordable, reliable energy
as one of the lowest upstream carbon intensity
producers of hydrocarbon products; while wecontinue our ambition to achieve net-zero
Scope 1 and Scope 2 GHG emissions acrosswholly-owned operated assets by 2050.
J For more details, see page 22

Safe operations andpeople development
We aim to provide a safe and respectful
working environment for all, on-site
and within the community, supported bycomprehensive policies, and resources. We
strive to support, diversify, and empower ourworkforce.
J For more details, see page 50

04

innovation and growth opportunities in developing
and developed countries.

We also aim to deliver a healthy, safe, and rewarding
environment for our people, our suppliers andcommunities where we operate while rehabilitating
and mitigating the impact on our natural environment.

54.4

Scope 1 emissions1(MMtCO2e)• Established the New Energies organization
following the endorsement of our long-term
strategy to achieve lower-carbon solutions andfor Aramco to meet its GHG emissions mitigation
and abatement ambitions.
• Upstream methane emissions reduction by 5.1% andupstream methane intensity maintained at 0.05%**• Energy efficiency initiatives resulting in avoidanceof 0.73 MMtCO2e.
• Played a key role in Oil and Gas Decarbonization
Charter, a global industry charter established at
COP 28 and signed by more than 50 oil and natural
gas companies• Largest buyer of carbon credits in the
Regional Voluntary Carbon Market Company’s
second auction in Nairobi, Kenya in June 2023

• Aramco achieved historic hiring levels,reaching over 73,300 employees• Over 20% of direct hires were female• 26.3% increase in the percentage of female
employees in leadership positions• The National Training Centers have collectively
had 57,943 graduates since inception• Largest-ever College Preparatory Program
cohort to graduate with 358 students• More than 2,000 students benefited from theIntermediate Science, Technology, Engineering,and Mathematics (STEM) program incollaboration with the Ministry of Education• Aramco’s total recordable case rate improvedby 16.0% in 2023 and represents the bestCompany performance on its record**(2022: 55.7**)

13.0

Scope 2 emissions1,2(MMtCO2e)**(2022: 10.3**)
Upstream carbon
intensity 2(kg CO2e/boe)

9.6

**

(2022: 9.3**)

Tier 1 process
safety events(number)

15(2022: 11)

3

Fatalities(number)**(2022: 5**)

7.2

Female employees(%)(2022: 6.4)** This figure has undergone/is undergoing external limited assurance in accordance to the ISAE 3000 (revised). Upon completion of assurance, the assurance report can be found online
on the Sustainability section of our website.
1. The Jazan Refinery is excluded from our GHG reporting in 2022 and 2021. In 2023, only the stabilized units of Jazan Refinery are included in our GHG metrics reporting.
2. In 2023, along with the location-based methodology we have been reporting in our disclosures to date, we have also adopted a market-based methodology to calculate and report on
our GHG emissions to avoid double counting of emissions associated with wheeled power, in line with GHG Protocol Scope 2 Guidance. Therefore, the figures reported for upstream
carbon intensity and Scope 2 emissions are market-based. For 2023, the location-based figures for upstream carbon intensity and Scope 2 emissions are 10.7 kg CO2e/boe and 18.2
MMtCO2e, respectively. For 2022, the location-based figures for upstream carbon intensity and Scope 2 emissions are 10.3 kg CO2e/boe and 16.1 MMtCO2e, respectively. For more
information on our GHG methodology, please refer to page 30 of this report.
ARAMCO | SUSTAINABILITY REPORT 2023

We have four focus areas that provide an overview of
how Aramco manages its sustainability performance:• Climate change and the energy transition;• Safe operations and people development;• Minimizing environmental impact; and• Growing societal value.
Underpinning these focus areas are metrics.
Increasing metrics is important for us, as we would
not be able to manage our sustainability performance
effectively, without having meaningful metrics thatmeasure our sustainability impact.

Minimizing
environmental
impactWe strive to conserve natural resources,
apply circular models across our value
chain, and to have a legacy of projects
that improve both natural habitats andshared resources.

Therefore, we are pleased to share that in our third
sustainability report, as we continue to progress on oursustainability journey, we have a 21% increase in thenumber of metrics in this report (74 metrics versus the
61 metrics in our 2022 Sustainability Report), and have
expanded the number of metrics undergoing external
assurance to 18 metrics (16 metrics in our 2022
Sustainability Report).

Net positive impact
on biodiversity(%)• Achieved 100%** ISO 14001 certification at
52 upstream and downstream asset-basedorganizations enrolled in Aramco’s
Environmental Management System (EMS)• Continued upgrading Sulfur Recovery Units(SRU) with tail gas treatment units• Designated additional Biodiversity
Protection Areas (BPAs), bringing thetotal number of BPAs to 14• Continued pursuing a water neutrality
aspiration• Planted approximately 6.5 million mangroves
and an additional 1.1 million native trees

J For more details, see page 64

Growingsocietal value

We seek to grow value wherever we operate.
With our headquarters in Saudi Arabia, wehave invested in the Kingdom’s oil and gas
ecosystem to enhance the reliability of our
supply chain, providing employment andeconomic opportunities to thousands ofSaudi nationals.
J For more details, see page 78

85.6

**,1

(2022: 53**)

12

Hydrocarbon spills(number)(2022: 15)
Freshwater
consumption(million m3)

89.9

**

(2022: 93.6**)

iktva procurement
spend in-Kingdom(%)• Continued commitment to building the capacityof locals with over 24% (15,099 in 2023 versus
12,160 in 2022) increase in the numberof people in our sponsored2 community programs• Providing growth acceleration services, via the
Taleed program, to support small andmedium-sized enterprises (SMEs) sustainability
and scale up including partnership and networkbuilding, business development, and attracting
investments• Social investments3 of $475 million were made in
Saudi Arabia and abroad• Aramco and its employees donated over
$18 million for disaster relief globally65(2022: 63)

90.3
Saudization(%)(2022: 90.9)475

Social investment 3($ million)(2022: 453)** This figure has undergone external limited assurance in accordance to the ISAE 3000 (revised). The assurance report can be found online on the Sustainability section of our website.
1. Ongoing management and review of the BPAs resulted in exclusion of the Manifa BPA from our NPI metric as a BPA, pending implementation of enhancements to align with theCompany’s biodiversity governance.
2. These programs include the Vocational College Internship Program (VCIP), University Internship Program (UIP), Summer enrichment program, Tomooh program, Advantage program,and Arizona Centers for Comprehensive Education and Life Skills (ACCEL) International Ajyal Center.
3. Updated methodology: this is the first year we are reporting on the costs of running Aramco-built schools, as part of our social investment. We have also revised the prior year figure
to reflect this change. With this updated methodology, the 2022 figure is now $453 million compared to $370 million under the previous methodology.
ARAMCO | SUSTAINABILITY REPORT 2023

05

OVERVIEW

CLIMATE CHANGE
AND THE ENERGY
TRANSITIONSAFE OPERATIONSAND PEOPLE
DEVELOPMENTMINIMIZINGENVIRONMENTAL
IMPACTGROWINGSOCIETAL VALUE

GOVERNANCE

DATA

Our history

90 years driving
sustainable growth
1933-1945

1946-1959

1933
The beginning: unlocking theKingdom’s vast oil resources
with the crude oil Concessionagreement (signed withStandard Oil of California)

1946
Developing local supply
chains: providing technicaland financial assistance to
Saudi entrepreneurs

The birth of Arabian oil

1940
Beyond employment:
providing additional
educational opportunities
for Saudis
1941
Boosting agriculture:
surveying land and drillingwells to provide valuable
water for farmers
1943
Employee health: helping
local communities toeradicate malaria

Setting our sustainability
foundations

1949
In-house training: investingin on-the-job technical andadministrative training
1950s
Building leaders: offeringscholarships to study in the US
to top-performing Saudis

1976-1989

2005-20202021-2023

1976
Became the world’s leading oil
producer in terms of volume
produced in a single year

2009
Flare monitoring system:
development of an inhouse system driving flare
reduction results

2021
Sudair renewable project: Aramcojoined a consortium to develop a
1.5 GW solar plant

Becoming the world’s
largest oil producer

1988
Saudi Arabian Oil Company
officially established

1960-1975

Taking bold leaps forward
1960
Female education: building
elementary schools for girls
in the Eastern Province
1975
Master Gas System: Decision
made to build the Master Gas
System, enabling one of theworld’s largest gas markets,transforming the nationalenergy mix toward natural gas
and building the cornerstone forthe economy’s industrialization
1978
Groundwater protection:
Establishing the Qurayyah
Sea Water Plant to support
our operations andconserve groundwater

1990-2004

Protecting resources andreducing emissions
1990s
Protecting ecosystems:
responding swiftly andefficiently to the Gulf War
oil spills
Reduced lead content fuels:
halved the lead content
of produced gasoline,
and ceased productionof leaded gasoline entirelyby the end of 2001

Innovative sustainable
solutions2013
Sustainable offices: the new
Al-Midra offices achieves
LEED platinum certification(Leadership in Energy andEnvironmental Design)
2015
Accelerating change: founding
member of the Oil & Gas
Climate Initiative (OGCI)
Hawiyah carbon capture,
Utilization and storage pilot:
Capacity to capture 800,000
tons CO₂ per annum
Domestic value creation:
launch of iktva (in-Kingdom
Total Value Add) program

1993
Mangrove restoration: firstmangrove trees planted

2016
Nurturing biodiversity:
reintroduction of oryx
and gazelle in Shaybah
Wildlife Sanctuary

2001
Recycling and reuse: devising
innovative applications for
Aramco’s wastewater

2017
Using alternatives: installing
the Kingdom’s first windturbine at the Turaif Bulk Plant
2018
Cultural enrichment: openingof Ithra – the King Abdulaziz
Center for World Culture
2019
Bringing hydrogen to the
local market: inaugurating
Saudi Arabia’s first hydrogenfueling station
2020
Blue ammonia: world first
shipment of blue ammonia,
opening new routes to a moresustainable future

06

ARAMCO | SUSTAINABILITY REPORT 2023

Transformationand energy security

First Sustainability Report: Aramcoissues its first sustainability report,
outlining what sustainability is for
Aramco and how we manage it
Net-zero: Aramco announced
its ambition to achieve net-zero
Scope 1 and Scope 2 greenhousegas emissions by 2050 from ourwholly-owned operated assets
2022
Net-positive biodiversity:
announced ambition to delivera net positive impact, building
on our work in over 985 km2
of protected areas
Sustainability Fund: Aramco
established a new $1.5 billion
Sustainability Fund to invest intechnologies needed to address
climate challenges
Carbon capture and storage:
Signed an agreement to construct
one of the world’s largest plannedcarbon capture and storage hubs
Blue ammonia and blue hydrogen:
Granted the first certification forblue ammonia and blue hydrogenfor SASREF/SABIC AN
2023
Expanding renewable energy:
Agreed to invest in the Al Shuaibah 1
and Al Shuaibah 2 photovoltaic
solar projects which are expected
to have a combined capacityof 2.7 GW
Circular economy: Aramco,
TotalEnergies and SABIC complete
MENA region’s first processing ofoil from plastic waste at scale to
make certified circular polymers

ARAMCO | SUSTAINABILITY REPORT 2023

07

OVERVIEW

Chairman’s message

CLIMATE CHANGE
AND THE ENERGY
TRANSITIONSAFE OPERATIONSAND PEOPLE
DEVELOPMENTMINIMIZINGENVIRONMENTAL
IMPACT

In 2023, we celebrated the 90th anniversary of
the Kingdom signing the Concession agreement.
The milestone was an opportunity to reflect on our
Company’s remarkable longevity and the source of
our enduring success. As we look back with pride
over the past nine decades, one common thread
emerged: an unwavering commitment to the longterm prosperity of our communities, our customers,
and our stakeholders.
Throughout our history, that commitment has
always required us to carefully balance short-termand long-term needs. It is a responsibility that has
taken on even greater urgency with the risks posedby climate change. How to facilitate the transition
toward a more climate-conscious tomorrow
without disrupting the manufacturing, trade, andtransportation that are so essential to billions of lives
today is one of the defining challenges of our time.
Supporting the energy transition
Aramco is intent on being part of the global solution.
With the world’s energy demand continuing to grow,we are striving to ensure reducing GHG emissions
in our conventional energy – which remains criticalto meeting demand. We are pursuing a variety ofpathways to achieve that objective, including byimproving the energy efficiency of our operations,minimizing flaring and further reducing our GHG
emissions. These efforts have helped us to attain an
upstream carbon intensity that is ranked among thelowest in the industry.

08

ARAMCO | SUSTAINABILITY REPORT 2023

GOVERNANCE

DATA

President and CEO’s message
We know that global net-zero ambitions cannot be
achieved solely by reducing the emissions associatedwith conventional energies. The success of thetransition to a lower emissions future will also hingeon the availability of multiple lower carbon options,some of which may be more suitable in certain
contexts than others. That is why we are pursuingthe development and deployment of technologies
and tools that can contribute to global emission
reduction efforts, including carbon capture andstorage, “drop-in” lower-carbon fuels, blue hydrogen,renewables, and offsets.

Investingin growth

GROWINGSOCIETAL VALUE

We have also more than doubled the funding forour global venture capital arm, with half of theadditional $4 billion being injected into Aramco
Ventures earmarked for investment in late-stage,larger-ticket ventures in the sustainability anddigital domains.
Focusing on sustainability
In this report, we elaborate on our sustainabilityrelated ambitions, targets and metrics as well as
our progress to date. It is worth also noting that for
Aramco, sustainability means going above andbeyond just being a reliable supplier of energy tocustomers around the world. It also means being a
responsible corporate citizen environmentally, sociallyand economically. This is underpinned by our focus
on addressing climate change as part of the global
energy transition, maintaining safe operations
while ensuring people development, minimizing
environmental impacts, and also continuing to growsocietal value.
Throughout 2023, I am proud to say that Aramco
maintained positive momentum in each of theseareas due to the dedication of our talented team of
employees. Our accomplishments would also nothave been possible without the continued supportand vision of The Custodian of the Two Holy MosquesKing Salman bin Abdulaziz Al-Saud, and His RoyalHighness Prince Mohammed bin Salman bin
Abdulaziz Al-Saud, Crown Prince and Prime Ministerof the Kingdom of Saudi Arabia.
Clearly, the global transition to a lower carbon future
is a complex journey rather than a singular event.
What is also clear is that Aramco has a key role toplay in this energy transition.

H.E. Yasir O. Al-Rumayyan
Chairman of the Board of Directors

Our partnerships also extend to our Downstream
business where we furthered our long-term goalof directing up to four million barrels per day into
liquids-to-chemicals by 2030. In Asia we brokeground on two integrated refinery and petrochemicalcomplexes, one through our affiliate S-Oil in South
Korea and another through a joint venture, HAPCO,
in China. We also acquired a 10% stake in Chinese
petrochemical company, Rongsheng.

Innovating forsustainability

Aramco’s role as the indispensable partner to arealistic and robust energy transition puts us in aunique position. We take the responsibility seriously
and have put sustainability at the heart of ourstrategy. Old problems are being met with new
solutions and I am proud of what we have achieved.
Collaborating to drive more sustainable solutions
Collaboration is a key part of our approach andwe have been working with Siemens Energy on abrand-new Direct Air Capture test unit at our Dhahranbase in Saudi Arabia. This new test unit is expected tohave the capacity to capture up to 12 tons of CO2 fromthe atmosphere per year and could pave the way for alarger plant with the ability to capture more than
100 times that amount.

Alongside Danish technology leader Topsoe, we haveplans to build a lower-carbon hydrogen production
demonstration plant at Shaybah, deep in the desert.
We expect to have a production capacity of six tonsof hydrogen per day and use renewable electricity inelectrified steam reforming of hydrocarbons to
produce lower-carbon hydrogen for use in power
generation, with resulting CO2 being captured
and sequestered.
On carbon sequestration, we have piloted a novel
method with our partners at King Abdullah Universityof Science and Technology using situ mineralization
which involves dissolving CO2 in water and injecting it
into volcanic rocks. This process permanently converts
CO2 into carbonate rocks, and has led to thedevelopment of innovative technologies that reduce
cost and increase efficiency.

Supporting local communities and economic growth
Our Namaat industrial investment program continues
to support new industries in the Kingdom. One such
example from 2023 is the establishment of an integrated
steel plate manufacturing complex in Ras al-Khair
Industrial City. This joint venture with Baosteel and
the Public Investment Fund will be the first facility ofits kind in the region, creating jobs and growing the
economy. It is also expected to help localize our
supply chain, an important iktva objective.
A Novel Non-Metallic Solutions joint venture with
Baker Hughes is another supply chain localization
success. The development and commercialization of
nonmetallic products at the King Salman Energy Parkis helping create a thriving in-Kingdom energy value
chain. The nonmetallic reinforced thermoplastic pipes
being produced are corrosion resistant and easier toinstall. This means that as well as the localization
benefits in production this new material also mitigatescarbon in the field too.
On production, hydrocarbons will increasingly
be used without combustion, providing essential
ingredients for new and innovative materials
needed for the energy transition.
Maintaining a culture of safety
Safety is always at the front of our minds anddespite a continual improvement for recorded
incidents at Aramco facilities, we regrettably suffered
the loss of three lives from our team of contractors.
Thorough investigations have been carried out toavoid reoccurrences, the learnings from whichhave been shared with relevant teams. No loss oflife is acceptable and we are committed tomaintaining a culture of safety excellence.
Living our values
This year’s report demonstrates the progress we
as a company are making to encourage sustainability
in our operations and to support the Kingdom’s
sustainable development. I want to pay tribute tothose making it happen, as our plans are only as
good as our people. The men and women of Aramco
stepped up again in 2023 to deliver for the company
and those who rely on us. I am proud of the values
they demonstrate every day and know we willcontinue to make great strides together.

Amin H. Nasser
President and CEO

ARAMCO | SUSTAINABILITY REPORT 2023

09

OVERVIEW

CLIMATE CHANGE
AND THE ENERGY
TRANSITION

Value of oil and gas

Oil and gas: an integral part of everyday life

8

billionSource: United Nations, 2022

Fueling development

Oil and gas fuel the production of cement
and steel; key ingredients for developmentof essential infrastructure. Oil-based products
are used in the manufacture and operationof construction machinery advanced polymer
products, and key building materials suchas paint.

4.1

billion tons of cement

produced annually, as well as over 1.7 billion
tons of steel.
Source: Global Cement and Concrete Association, 2024

Enabling global mobility

Long-haul travel remains reliant on oil andgas. Furthermore, oil-based products are essential forvalue chains of traditional and electric car
manufacturing including durable lightweight carbon
materials, (which enhance energy efficiency) alongwith rubber used in tires,gaskets, and seals.

95%of transport energy comes from fossil-derived liquid fuels.
Source: Transportation Engineering, 2020GROWINGSOCIETAL VALUE

GOVERNANCE

DATA

A materials transition is essential
to enable an energy transition.
The manufacture, operation, andtransportation of renewable energy
infrastructure is, today, part of the oiland gas value chain. Gas is also used in
the production of blue hydrogen.

90

MMt of crude oil equivalent:

The oil products and gas required to
manufacture the composite fibers needed
to have 2.5 TW of installed wind power isequivalent to 90 MMt of crude oil

Ensuring food security

people depend on stable foodsecurity, affordability, and access.

MINIMIZINGENVIRONMENTAL
IMPACTPowering the pathways
towards net-zero

Oil and gas are not just reliable energy sources;
they are also a key component of the thousandsof everyday products we need for modern
living that influence most aspects of human life.

Natural gas is the primary feedstock
for synthetic ammonia that forms
the basis of fertilizers, essential forhigh yield food crops ensuring
adequate supply and nutrition.

SAFE OPERATIONSAND PEOPLE
DEVELOPMENT

Source: Smil, 2016

Oil&

Connecting people

Hydrocarbons are essential for modern
communication. Petrochemical products(e.g., plastics) are used to build data
cables that enable internet connectivity
and mobile and other computer devices.

gas

3.6

devices per person

Connections per capita by 2023.
Source: CISCO Internet Report 2020

Supporting healthcare

Petrochemicals are a key ingredient inpharmaceutical, and medical equipment,from artificial limbs, to heart valves,to PPE.

99%of pharmaceutical feedstocks andreagents are derived from petrochemicals.
Source: Canadian Energy Centre, 2024

Making life comfortable

From the clothes we wear, to the healthand beauty products we use, to thegames we play and sports we pursue,
thousands of our everyday products arederived from petrochemicals.

70%

Synthetic fibres that use hydrocarbons
make up about 60% of clothing and
70% of household textiles.
Source: European Environment Agency, 2021

10

ARAMCO | SUSTAINABILITY REPORT 2023

ARAMCO | SUSTAINABILITY REPORT 2023

11

CLIMATE CHANGE
AND THE ENERGY
TRANSITIONOVERVIEW

Positioning Aramco for the future

Oil and gas will play an essential
role for a practical, stable, andorderly energy transition

A vast range of projections exist for global energy demand indicating that
oil and gas is expected to continue to be an essential part of the mix.
600

Reference cases

500
400
300

Accelerated transition
scenarios

200

100
Globaltotal oil and gas demand by scenario, 2023-2050
01
Global2023 oil demand(MMboed)120

Disruptive transition

2050
Reference cases

100
80
60
40
20
0
2023

400
300

2050

100
0
2023
120

What are these scenarios?
100
They are alternative pathways depicting future energy landscapes.
80
These scenarios can broadly be categorized into three groups.
60
Reference case scenarios depict a landscape that assumes slow
incremental development in line with past trends, with new40
20developments that have a high probability of occurring in the
future and hydrocarbons continuing to play a major role in the02023
energy mix. Accelerated transition scenarios project a phasing
down of hydrocarbons which contrasts with the historical trendof adding new sources of energy, but never phasing out existingsources of energy. Disruptive transition scenarios which are agoal-seeking process of ‘what needs to be done’ to reach net-zeroemissions by 2050 rely on technological breakthroughs and forcefuldisplacement of existing energy systems, but lack plausibility, a key
criterion for developing scenarios. Under all projected scenarios
above, oil and gas is expected to continue to play an eminent role inmeeting global energy demand.
Why oil and gas is expected to be part of the energy mix?
Oil has maintained the largest share in the global energy mix foralmost six decades and the share of natural gas is continuing toincrease. The global transportation system is almost exclusively
dependent on oil, while many hard-to-abate sectors depend on
oil for its superior energy-density properties. Electrification of roadvehicles targets only about one-quarter of total oil demand. Despite
impressive growth over the past few years, electric cars are notexpected to offset energy demand growth.
Beyond a source for energy through combustion, the role of oil
and gas is set to evolve in lockstep with a transition to lower
emissions. A ‘materials transition’ will see a significant increasein demand for both existing and alternative materials, and thiswill be key to enabling the wider energy transition. Nonmetallic
and carbon-based materials have numerous strength andlightweight benefits, and have the potential to increasingly

12

ARAMCO | SUSTAINABILITY REPORT 2023

Reference cases

Accelerated transition
scenarios

200
Disruptive transition

GROWINGSOCIETAL VALUE

GOVERNANCE

DATA

Our ambition: to be the supplier of choicefor oil and gas with lower upstream
production carbon intensity

With one of the lowest upstream carbon intensity and cost per
barrel in the world, we will continue to demonstrate leadershipin supporting a practical, stable, and orderly energy transition.
strategic approach see page 14

500
Accelerated transition
scenarios

MINIMIZINGENVIRONMENTAL
IMPACTJ For more information about our

Global gas demand2(bscfd)600

SAFE OPERATIONSAND PEOPLE
DEVELOPMENT

Disruptive transition

2050

1. These projected scenarios
are based on publicly
available scenarios fromEnergy Information Agency(EIA), S&P Global, and ourpeer companies.
2. These projected scenarios
are based on publicly
available scenarios from EIA,
WoodMac, Rystad, and ourpeer companies.

Reference cases

supplement and displace materials such as steel and cement,
which are more GHG emission intensive across their life-cycle.
Accelerated transition

Natural gas will help facilitate
scenarios a shift to lower emissions byreplacing higher carbon-emitting coal in electricity generation.
Gas will also remainDisruptivea criticalfeedstock for fertilizer production
transition– important to meeting the world’s growing demand for foodas the global population continues to grow.
2050

The continued presence of hydrocarbons in the energy mix will
necessitate that emissions management play an increasingly
important role going forward with investments into CO2
removals and offsets.
How do we use scenarios?
Aramco’s in-house experts develop scenarios using advanced
tools and models. These scenario narratives are founded on
the energy-trilemma framework developed by the World
Energy Council. They not only depict the trade-offs between
affordability, security, and sustainability but also find sweet
spots where the trilemma can potentially converge. These
scenarios help us benchmark against consensus views andevaluate their plausibility with ongoing policy developments,
technological progress, and investment levels.
What do these scenarios tell us?
Scenarios tell us the window of uncertainty and possible
outcomes in our business landscape. They also assist inassessing the resilience of our current business and future
investments. Aramco’s hydrocarbon products have one of
the lowest upstream carbon intensity among its peers. As
Aramco continues its efforts to enhance its reliability andupstream carbon intensity, these two factors will potentiallymake our operations resilient under the evaluated scenarios.

Lower upstream carbon intensity

Beyond products

Upstream carbon
intensity(kg CO2e/boe)

Other ways that Aramco contributes to society

9.6

**

Upstream methane
intensity
(%)

0.05

People73,311
employees

Low cost and high capacity
Total hydrocarbon
reserves(billion boe)

251.2

Average upstream
lifting costs($/boe)

3.19

Maximumsustainable capacity(MMbpd)12.0

16,088million

$

wages

Governments

99.8
Reliability(%)

product delivered
within 24 hours of thescheduled time$

205 billion

payments to the Saudi andforeign governments1

Society$

475 million
263%

social investment

sustainability-related
R&D spent

9million$

202.9billion

160

cumulative iktva GDP
contribution since 2015

schools built and maintained

3

hours spent on educating
our people (training anddevelopment)** This figure has undergone external limited assurance in accordance to the ISAE 3000 (revised). The assurance report can be found online on the Sustainability section of our website.
1. Includes income taxes, royalties, and dividends to the Saudi government.
2. Updated methodology: this is the first year we are reporting on the costs of running Aramco-built schools, as part of our social investment. We have also revised the prior year figure to reflect thischange. With this updated methodology, the 2022 figure is now $453 million compared to $370 million under the previous methodology.
3. In line with the new methodology of calculating the training hours, the total number of training hours includes all training offered corporate-wide during the year for all employee categories in
addition to trainees and contractors.
ARAMCO | SUSTAINABILITY REPORT 2023

13

Sustainability
and our strategy

OVERVIEW

CLIMATE CHANGE
AND THE ENERGY
TRANSITIONSAFE OPERATIONSAND PEOPLE
DEVELOPMENTMINIMIZINGENVIRONMENTAL
IMPACTGROWINGSOCIETAL VALUE

GOVERNANCE

DATA

Positioning Aramco for the future

Aramco – as one of the world’s largest integrated
energy companies – is uniquely positioned to address
all three elements of this challenge, helping to ensure
a secure and more sustainable future for all.

Increasing shareholder and societal value
Global fossil fuel prices remain volatile. Protracted
conflicts in Ukraine and the Middle East havere-emphasized the link between geopolitical risk
and energy security.
This has contributed to high inflation, andgeopolitical tensions have created significant
global energy supply challenges.

This series of deepening shocks, crises, andtensions has underscored the need for a just,orderly, and inclusive energy transition to mitigate
anthropogenic climate change while addressing
the three elements of the energy trilemma:
affordability, security, and sustainability.

Our key enablers

To achieve its vision, Aramco focuses on four
strategic themes across its businesses:

Aramco’s strategy requires a number ofenablers to be successful, including:Downstream integration

As the principal engine of value
generation, Aramco intends to maintainits position as the world’s largest crude
oil company by production volume andone of the lowest-cost producers. The
Company’s vast reserves base, sparecapacity, and unique operational
flexibility allow it to respond effectively
to changes in demand.

Aramco has a dedicated system ofdomestic and international wholly-owned
and affiliated refineries that are critical tomonetizing its upstream production.
Through continued strategic integration,
the Company captures additional value
across the hydrocarbon chain.

Lower-carbon initiatives

Localization and thepromotion of national
championsAramco aims to lower the net GHG
emissions of its operations and support
the global energy transition throughdevelopment of a New Energies
business that includes renewable power
generation and products and solutions
that emit less carbon dioxide during
production than traditional fossil fuels,
across the energy, chemicals, andmaterials sectors.

ARAMCO | SUSTAINABILITY REPORT 2023

Aramco facilitates the development of adiverse, more sustainable and globallycompetitive in-Kingdom energy
ecosystem to underpin the Company’scompetitiveness and support theKingdom’s economic development.

Through this integrated approach, we arefacilitating an orderly and practical energy transition
while strengthening our unique and central role
to meeting the world’s growing energy needs.

We are planning to increase our production ofnatural gas – with a mix of both conventional
and unconventional – by more than 60% by 2030.
This will support the Kingdom’s drive away fromcrude oil and liquids for power generation.

Our strategic themes

Upstream preeminence

14

Our upstream carbon intensity is already among
the lowest in the industry per barrel of oil equivalent,
and we are working to reduce this intensity further.
We are pursuing measures to reduce our upstream
carbon intensity, including specific measures toreduce our gas flaring and methane intensity.

We are also developing and scaling alternative
energies and technologies that are expected to be
critical to lowering emissions, including carbon
capture and storage (CCS), blue hydrogen, blue
ammonia, renewables, and synthetic fuels.

Our sustainability focus areas

PeopleAramco recognizes the need toprepare its workforce of the future
to ensure its capabilities match ourstrategic requirements. This includes
advancing technical and professional
skills, developing commercial andleadership competencies, supporting
the progress of localization, andfocusing on diversity and inclusion.

Technology
Aramco’s technology program aims
to develop new solutions for its
upstream and downstream businesses,
help diversify its product portfolio,
grow its business sustainably, andreach its ambition to achieve net-zero
Scope 1 and Scope 2 GHG emissions
across wholly-owned operated assets
by 2050. The program also aims toenable Aramco to grow its businesscompetitively and sustainably in new
areas such as new energies, advanced
materials, and digital solutions.

Portfolio optimization
Aramco seeks to unlock value,enhance its capital structure, andreallocate capital to higher growth
and return investments. Aramco has
a comprehensive and disciplined
internal approval process for capital
expenditures, new projects, anddebt issuance.

Climate change and the energy transition
J For more information see page 22

Safe operations and people development
J For more information see page 50

Minimizing environmental impact
J For more information see page 64

Growing societal value
J For more information see page 78

Governance
J For more information see page 94

ARAMCO | SUSTAINABILITY REPORT 2023

15

Our sustainability framework

OVERVIEW

CLIMATE CHANGE
AND THE ENERGY
TRANSITIONSAFE OPERATIONSAND PEOPLE
DEVELOPMENTMINIMIZINGENVIRONMENTAL
IMPACTGROWINGSOCIETAL VALUE

GOVERNANCE

DATA

Our approach to sustainability

Our sustainability framework presents the key areasthat hold the greatest potential for our business tohave long-term positive impacts, connecting the
Saudi Vision 2030 and UN SDGs to our four focus
areas, which incorporate the material sustainability

ed Na
Unit

stainable Developmenttions' Su
Goal

Saudi Amco
AraÆRenewableenergys

rabia’s Vision 2030

ÆIncreasing women’s
participation in
the workforceÆAlternative
energy: hydrogenand ammonia

ÆSaudi Green
Initiative

topics stakeholders expect from us, and we feel a
responsibility to address. Our sustainability focus
areas and sustainability performance is overseen by
governance provided by our Board of Directors.

’s sustainability focus areasClimate change
and the energy	For more
informationtransitionsee page 00ÆReducing
unemployment

ÆAttracting
talentSafe operations andpeople development	
For more information
see page 00

How wework
ÆReducing
air pollution

ÆDiversifying
the economy

Growingsocietal value

ÆInvesting forthe long term

Minimizing
environmental
impactÆEmpoweringsocietyÆSupporting small andmedium enterprisesÆCombating
desertification

Similar to previous years, in 2023, we conducteda materiality1 refresh to evaluate whether oursustainability focus areas, material topics, prioritized
UN SDGs, and metrics remain appropriate andrelevant.

This assessment is a detailed analysis of the risks
and opportunities that interest our stakeholders that
we feel we have an influence over and serves as animportant process for selecting key sustainability
topics for Aramco.
This process includes:• External stakeholder engagements
details on pages 20 and 21);

ÆWastemanagement

ÆPreserving
marine life
GovernanceOur material
sustainability topics• Internal stakeholder engagements(details on page 20);
• Review of existing (e.g., Ipieca sustainability
guidelines) and upcoming standards (particularly theInternational Sustainability Standards Board (ISSB),
and regulatory requirements around the world,
including Europe, Saudi Arabia, and USA); and• Peer benchmarking.

Upon completion of our materiality refresh exercise
and extensive stakeholder engagement, a summaryof conclusions and subsequent actions, whereappropriate, are provided below:• Our four focus areas (plus our focus on corporate
governance2) are still appropriate and relevant;• Thirteen material sustainability topics, plus a focus
on corporate governance, have been identified as
being the issues stakeholders expect from us, andwe feel a responsibility to address;• Affirmation that Aramco’s roadmap to establish
additional metrics to better monitor, manage andreport on our performance under each focus areaand material topic is correct. Due to the increasing
maturity of existing metrics and the introduction of
new metrics by relevant guidelines and regulatory
requirements, we have increased the number of
metrics in this report to 74 (an increase of 13 metrics
from the 61 metrics in our 2022 Sustainability
Report); and• Increasing the number of our metrics in our
Sustainability Report undergoing external assurance;from 16 metrics in 2022 to 18 metrics in 2023.

1. The concept of ‘materiality’ refers to the guidance on external reporting from the Global Reporting Initiative, and does not necessarily correspondto the concept of materiality used in connection with Aramco’s financial reports.
2. For more information on our governance, relevant material topics and our governance metrics, please refer to page 94 in this report, and page 90
in the 2023 Aramco Annual Report.
16

ARAMCO | SUSTAINABILITY REPORT 2023

ARAMCO | SUSTAINABILITY REPORT 2023

17

CLIMATE CHANGE
AND THE ENERGY
TRANSITIONOVERVIEWSAFE OPERATIONSAND PEOPLE
DEVELOPMENTMINIMIZINGENVIRONMENTAL
IMPACTGROWINGSOCIETAL VALUE

GOVERNANCE

DATA

Mapping our material sustainability topics
Our approach to sustainability

Impact levels on:
Our business:

Impact levels on:
Our business:
Very highHigh

Moderate

Very highOur stakeholders:

Climate change and the energy transition
Material topic and impact

Relevant metric to monitor performance against material issue

Climate change(including GHG
emissions)• Scope 1 emissions (million metric tons of CO2e)• Scope 2 emissions (location-based) (million
metric tons of CO2e)• Scope 2 emissions (market-based) (million
metric tons of CO2e)• Upstream carbon intensity (location-based)(kg CO2e/boe)• Upstream carbon intensity (market-based)*(kg CO2e/boe)

Safe operations and people development
Material topic and impact

Relevant metric to monitor performance against material issue

Workforce protection• Lost time injuries/illnesses rate
(per 200,000 work hours)• Total recordable case rate
(per 200,000 work hours)

Process safety
and asset integrity

High

Moderate

Our stakeholders:

For SDG contribution see page 22
SDGs• Upstream methane emissions (metric tons of CH4)
• Upstream methane intensity (%)• Flaring intensity (scf/boe)• Flared gas (MMscf)• Energy intensity (thousand Btu/boe)• Energy consumption* (MMBtu/hr)• Patents filed in sustainability technologies* (%)• Sustainability-related R&D spend* (%)

For SDG contribution see page 50
SDGs• Health performance (%)• Fatal accident rate* (per 100,000,000 work hours)• Number of fatalities

Minimizing environmental impact

For SDG contribution see page 64

Material topic and impact

Relevant metric to monitor performance against material issueL ocal environmental
impact• Number of hydrocarbon spills• Volume of hydrocarbon spills (bbl)• Recovered hydrocarbons (%)• Hydrocarbon discharge to water (barrels)• Sulfur oxides (SOx) emissions (metric kilotons)

SDGs

Biodiversity andecosystem services• Net positive impact (%)

Water
management• Freshwater consumption (million m3)• Freshwater withdrawal (million m3)• Freshwater intensity* (m3/boe) (total freshwater consumed
relative to our hydrocarbon production)

 roduct stewardshipPand waste management• Industrial waste disposed (metric tons)• Industrial waste recycled (%)• Number of sites with ISO 14001 certification (%)• Number of Tier 1 process safety events

Growing societal value
Human rights• Number of grievances raised• Sites with a grievance mechanism in place (%)

Labor practices• Attrition rate (%)• Number of Company employees• Number of female employees• Female (%) of total employees• Female (%) of total number of new hires• Number of female employees in leadership positions• Female employees in leadership positions (%)• Number of contractor employees• Employee engagement score (%)• Total hours of training and development• Total hours of training and development (per employee)• Employees acknowledging performance review
meetings1 (%)• Number of hired graduates• Number of apprentices (new intake)• Number of interns• Number of nationalities in the workforce*• Breakdown of Company employees (by age)*

Material topic and impact

Relevant metric to monitor performance against material issue

Labor practices• Number of people on Aramco sponsoredcommunity programs1

National content• Saudization (%)• Saudization of construction contracts (%)• Saudization of service contracts (%)• iktva procurement spend in-Kingdom (%)• Cumulative iktva GDP contribution* ($ billion)

 uman rights
H(supply chain)• % of active suppliers signed up to Aramco’s Supplier
Code of Conduct• Number of active suppliersCommunity and society • Social investment ($ million)• Total number of volunteers2• Total number of volunteering hours2

Economic contribution* Metric reported for the first time externally.
1. In accordance with our ongoing review of our sustainability performance data, we have determined that the metric “Employees receiving regular performance reviews (%)” reported
in 2022 and 2021 should be renamed “Employees acknowledging performance review meetings (%)” in order to more accurately reflect what this metric entails.
18

ARAMCO | SUSTAINABILITY REPORT 2023

For SDG contribution see page 78
SDGs• Number of employee volunteers*,2• Number of Aramco facilitated community volunteers*,2• Number of employee volunteering hours*,2• Number of Aramco facilitated community
volunteering hours*,2• Direct economic value generated and distributed($ million)• Total R&D spend ($ million)* Metric reported for the first time externally.
1. These programs include the Vocational College Internship Program (VCIP), University Internship Program (UIP), Summer enrichment program, Tomooh program, Advantage program,and Arizona Centers for Comprehensive Education and Life Skills (ACCEL) International Ajyal Center.
2. Increased data management identified that in the 2022 Sustainability Report, Aramco’s volunteering hours consisted of not only employees’ volunteering hours but also members of
our communities. Therefore, from 2023 onwards, Aramco will now separately report the ‘number of volunteers’ and ‘number of volunteering hours’ for both employees and membersof community volunteering with Aramco.
ARAMCO | SUSTAINABILITY REPORT 2023

19

OVERVIEW

Stakeholder engagement

CLIMATE CHANGE
AND THE ENERGY
TRANSITIONSAFE OPERATIONSAND PEOPLE
DEVELOPMENTMINIMIZINGENVIRONMENTAL
IMPACTGROWINGSOCIETAL VALUE

GOVERNANCE

DATA

Our stakeholder engagement

Aramco recognizes that there is a social contract
between our Company and the society within
which it operates. Aramco interacts with a rangeof stakeholders to ensure that their perspectives are
considered in the development of our business plans,

Our people

Our customers

Our suppliers,

partners, andcontractors

I nvestors,
financial
institutions,rating agencies,
and insurers

sustainability plans, and objectives; from projectplanning, to execution, long-term operations, andcustomer service. During the year, we engaged withstakeholders on a diverse range of topics.

Communication channels and examples of engagement

Discussion topics

•
•
•
•
•
•
•
•
•
•
•
•

•
•
•
•
•
•
•
•
•
•

Town halls
Employee engagement surveys
Employee networks
Young Leaders Advisory Board (YLAB)
Training
Intranet
Human resources
Recognition events
Senior leadership meetings
Safety meetings
Quarterly engagement talks on current events
Management letters and emails• Sustainability• HSE performance• Quality control

•
•
•
•
•

• Engagement on supply chain disruption
and mitigation plans• HSE requirements• Agreeing ESG initiatives with suppliers
to improve their capabilities• Performance on quality, delivery, and price• Supplier Code of Conduct• iktva• Conformance to Aramco policies, including Environment
Policy

•
•
•
•
•
•
•
•

Quarterly earnings calls
External disclosures
Direct investor communication
Annual General Meeting
Annual insurance renewals
Revolving credit facility meetings
Conferences and non-deal roadshows
Focused investor groups

•
•
•
•
•
•

Regulatorsand industry
associations

Our vision and mission
Corporate ethics and values
Professional development
Career progress
Our strategy
Sustainability
Remuneration
Health, safety and environment (HSE) performance
Industry trends, current events
Community support/volunteering• Customer feedback forms• Face-to-face meetings• Regular engagement between sales teams and our businesscustomers• Customer service centers• Trade shows and conferences• Email/newsletters
Business performance reviews
On-boarding program
Supplier facility visits
Workshops
Training programs

Local charities
and non-profit
organizations

Climate change and the energy transition
Financial and operational performance and outlook
Environmental performance
Human capital management
Sustainability-related targets and performance
Risk management

Our local
communities

Communication channels and examples of engagement

Discussion topics

•
•
•
•
•

• Corporate donations• Matching contributions• Community needs

Volunteer events
Student mentoring
Community events
Citizen Advisory Panel meetings
Employee service on community boards

Saudi ministries and regulators
IpiecaUS Environmental Protection Agency (EPA)
American Petroleum InstituteInternational Emissions Trading Association (IETA)
American Fuel and Petrochemical Manufacturers
American Society for Testing and Materials
World Economic Forum
OSHA
ISSB
Saudi Organization for Chartered and Professional Accountants(SOCPA)• OGCI• Saudi Exchange, Capital Market Authority,
London Stock Exchange

•
•
•
•
•
•
•
•
•

•
•
•
•
•
•
•
•
•
•
•
•

•
•
•
•
•
•
•
•
•

•
•
•
•
•
•
•
•
•
•
•

Volunteer events
Student mentoring
Community events
Citizen Advisory Panel meetings
City Council meetings
School board meetings
Economic development associations
Local industry groups meetings
Quarterly community newsletters
Plant tours
Direct mailings
Conferences

Standards setting
Compliance with regulatory standards
Workplace safety and incidents
Project specific discussions
Supply disruptions
The energy transition
Permits
Knowledge sharing on best practices
Collaboration on industry standards

Social impacts of operations and expansion plans
Pipeline awarenessWorkforce development
Local content
Community development and outreach
Economic and social investments
Charitable giving
Emergency response and preparedness
Environmental stewardship (e.g. establishment of mangrove
eco-parks, beach rehabilitation campaigns etc)
• Health and wellness programs• Mentoring programs and scholarships• Small business support

Sustainability in action

Strengthening corporate governanceacross the Middle East
As part of our stakeholder engagement, Aramco is
keen to work with local communities to build theircapacities and capabilities.
One demonstration of this is our support in thedevelopment of effective corporate governancepractices as one of the founders of the GCC Board
Directors Institute (GCC BDI).
Since its inception, the GCC BDI has grown into oneof the leading institutes of directors in the world,
helping to improve Board effectiveness andcapabilities across the region by training over
3,500 Board directors and executives, including
over 2,400 in Saudi Arabia alone.

20

ARAMCO | SUSTAINABILITY REPORT 2023

ARAMCO | SUSTAINABILITY REPORT 2023

21

Not just a rock
Understanding the subsurface is key to finding
optimal locations for geological storage of
captured CO2. CCS is one of the intended
levers to reduce our upstream carbon intensity
and meet our climate ambitions.

Climate change
and the energy
transition

Differentiate............................................................... 28
Sustain........................................................................ 38
Diversify...................................................................... 42
Enable......................................................................... 44

22

ARAMCO | SUSTAINABILITY REPORT 2023

ARAMCO | SUSTAINABILITY REPORT 2023

23

OVERVIEW

CLIMATE CHANGE
AND THE ENERGY
TRANSITIONMINIMIZINGENVIRONMENTAL
IMPACT

SAFE OPERATIONSAND PEOPLE
DEVELOPMENTGROWINGSOCIETAL VALUE

GOVERNANCE

DATA

Climate change and the energy transition
Performance of our key metrics
Material issue Relevant metrics

There is no one-size-fits-all solution to the energy transition challenge. Instead, there must
be a multi-source, multi-speed approach that recognizes the different regional starting
points in the energy trilemma – security, affordability, and sustainability. Among ourinternational oil and gas peers, Aramco is in a leading position with one of the lowest
upstream carbon and methane intensities.

We have an ambition to achieve net-zero Scope 1 and Scope 2 GHG emissions across
our wholly-owned operated assets by 2050; by 2035, we aim to reduce our upstream
carbon intensity by 15% against our 2018 baseline of 9.1 kg CO2e/boe. We aim to meet
our carbon intensity ambition and mitigate 52 MMtCO2e annually by 2035 from ourbusiness as usual forecast emissions.

In 2023, we established the New Energies organization following the endorsement of
our long-term strategy to achieve lower-carbon solutions and for Aramco to meet its GHG
emissions mitigation and abatement ambitions. Over the next few years, we haveallocated around 10% of our capital investments in New Energies to help us progress in
our GHG emissions mitigation and abatement journey3.

2023 performance
Total Scope 1 and Scope 2 emissions1(million metric tons of CO2e)
2023

67.32

2022

66.02

2021

67.8

2022
2021

15

across wholly-owned operated assets.

2

Upstream carbon intensity 1(kg CO2e/boe)
2023

2050
net-zero ambition

9.6**
9.3**

%

reduction of Scope 1 and Scope 2 upstream
carbon intensity emissions by 2035

10.7**

Upstream methane emissions(metric tons of CH4 )
2023
2022
2021

27,70829,19326,754** T his figure has undergone external limited assurance in accordance to the ISAE 3000 (revised). The assurance report can be found online on the Sustainability section of our website.
1. In 2023, along with the location-based methodology we have been reporting in our disclosures to date, we have also adopted a market-based methodology to calculate and reporton our GHG emissions to avoid double counting of emissions associated with wheeled power, as per the GHG Protocol Scope 2 Guidance. Therefore, the figures reported for
upstream carbon intensity and Scope 2 emissions are market-based. For 2023, the location-based figures for total Scope 1 and Scope 2 emissions and upstream carbon intensity are
72.6 MMtCO2e and 10.7 kg CO2e/boe, respectively. For 2022, the location-based figures for total Scope 1 and Scope 2 emissions and upstream carbon intensity are 71.8 MMtCO2e
and 10.3 kg CO2e/boe, respectively. The 2021 Scope 2 emissions and upstream carbon intensity figures are reported using a location-based method. For more information on our GHG
methodology, please refer to page 30 of this report.
2. The Jazan Refinery is excluded from our GHG reporting in 2022 and 2021. In 2023, only the stabilized units of Jazan Refinery are included in our GHG reporting.
3. Please refer to page 97 for more information on the New Energies organization.

24

ARAMCO | SUSTAINABILITY REPORT 2023

Climatechange2023

2022

54.4**,255.7**,213.0**,2

10.3**,2

18.2**,2

16.1**,2

9.6**

9.3**

10.7**

10.3**

27,70829,193

Upstream methane intensity (%)

0.05

0.05

Flaring intensity (scf/boe)

5.64**,2

4.60**,2

153.8

146.2

Scope 1 emissions(million metric tons of CO2e)

Scope 2 emissions (market-based)(million metric tons of CO2e)
Scope 2 emissions (location-based)(million metric tons of CO2e)
Upstream carbon intensity (marketbased) (kg CO2e/boe)
Upstream carbon intensity(location-based) (kg CO2e/boe)
Upstream methane emissions(metric tons of CH4)

Flared gas (MMscf)
Energy intensity(thousand Btu/boe)
Energy consumption* (MMBtu/hr)

27,5062

85,649StatusScope 1 emissions decreased by 2.3% compared to 2022 mainly
due to lower hydrocarbon production during the year, and theuse of more accurate emissions accounting methodologies for
dynamic data at gas processing facilities.
Scope 2 emissions (market-based) increased 26.2% and Scope 2
emissions (location-based) increase 13.0% compared to theprevious year primarily due to the inclusion of the Jazan
Refinery (stabilized units) in the 2023 GHG emissions inventory.

Upstream carbon intensity (market-based) increased
3.2% and upstream carbon intensity (location-based)
increased 3.9% compared to 2022, largely due to higher gas
production, processing and storage, and lower overallhydrocarbon production.
Upstream methane emissions decreased by 5.1% and upstream
methane intensity was maintained at 0.05% despite increase innatural gas production. This was enabled by the Company’s
rigorous Leak Detection & Repair (LDAR) program, along withactivities to decrease upstream flaring and enhance energy
efficiency which reduce associated combustion related
methane emissions.

23,8182

Metric notdisclosed
previously,
therefore
no prior year
comparative.

Flaring intensity in 2023 was 5.64** scf/boe, up from 4.60**,2
scf/boe in 2022, primarily due to increased maintenanceand operational activities, as well as the inclusion of the Jazan
Refinery (stabilized units) in the 2023 GHG emission inventory.
In 2023, Aramco’s energy intensity was higher than 2022 by
5.2%, this was due to higher energy demand at ouroperationally controlled affiliates and at Jazan Refinery(stabilized units). Additionally, the increase in gas production,
processing and storage impacted the energy intensity, alongwith lower overall production

J Full metrics table on page 102

Our contribution to the UN SDGs
To support lower GHG emitting and more affordable energy,
we are investing in 12 GW in solar and wind energy by 2030,
expanding CO2 storage capacity (e.g., carbon sequestration)
as well as expanding gas production to displace the burningof liquids for power generation in the Kingdom.

In 2023 we planted 1.1 million native trees, and approximately
6.5 million mangrove trees in-Kingdom, bringing the cumulative
total to 4.1 million native trees and over 30 million mangrove trees.

Aramco Ventures was ranked as a Top-10 Climate Investor
globally by Climate501. Aramco invests in lower-carbon-emittingenergy and materials and in finding solutions to the climate
challenges through its $1.5 billion Sustainability Fund. This is
expected to create jobs and contribute to economic growth.

Aramco is collaborating with research centers and industries,
aiming to find solutions for climate challenges, and partneringwith organizations with a climate focus, such as the OGDC,
OGCI, Ipieca and WEF, as part of a wide range of government
and private sector collaborations across numerous industries.

As a major producer of oil and gas with one of the lowest upstream
carbon and methane intensities among its industry peers, Aramco
maintains its goal of mitigating and reducing GHG emissions across its
wholly-owned operated assets through a range of initiatives, which
include investments in innovative technologies. These efforts also
ensure that we align with the Kingdom’s ambitions on climate change.
* Metric reported for the first time externally.
** This figure has undergone external limited assurance in accordance to the ISAE 3000 (revised). The assurance report can be found online on the Sustainability section of our website.
1. Acknowledging leading Climate Tech investor (Climate50).
2. Jazan Refinery was excluded from our GHG reporting in 2022 and 2021. In 2022, we began reporting associated energy metrics. In 2023, in addition to the energy metrics, the stabilized
units of Jazan Refinery were included in our GHG emissions and flaring metrics reporting.

ARAMCO | SUSTAINABILITY REPORT 2023

25

OVERVIEW

CLIMATE CHANGE
AND THE ENERGY
TRANSITION

Climate change and the energy transition continued

Our approach toclimate change

As one of the world’s largest integrated energy andchemicals producers, we have scaled our operations
to meet growing energy demand across the world,which has been driven by economic growth.
Aramco is always seeking ways to improve
environmental performance by implementing
projects to enhance energy efficiency and mitigate
GHG emissions.
This forms an essential component of supporting
the Kingdom’s target of net-zero by 2060, and ourCompany’s ambition to achieve net-zero Scope 1 andScope 2 GHG emissions across our wholly-owned
operated assets by 2050.

SAFE OPERATIONSAND PEOPLE
DEVELOPMENTMINIMIZINGENVIRONMENTAL
IMPACTGROWINGSOCIETAL VALUE

GOVERNANCE

DATA

Our climate change andenergy transition framework
Our corporate strategy anchors on four strategic
themes, two of which are upstream preeminence
and lower-carbon initiatives, where we producehydrocarbons that have one of the lowest upstream
production costs and one of the lowest carbon
intensities per barrel of oil equivalent in the world,
while working with customers along the value chain
to offer products that support their ambitions forthe future.

Climate change risk
and mitigation

Climate change is a top corporate priority for us andwe assess this on a medium- to long -term horizon.
Our response to climate change is embedded in ourbusiness strategy, supported by our climate change
and energy transition framework and our five GHG
mitigation levers (energy efficiency, flaring andmethane reduction, carbon capture and storage,
renewables, and natural climate solutions and offsets).

Our strategic focus is on developing and deploying
innovative solutions, optimizing operations, andadopting efficient project designs that aim to
mitigate our emissions. We have allocated financial,technological, and human capital to invest at scale todeliver these plans and ambitions. Innovation and new
ways of thinking are driven by all levels of Aramco.

Risk1

Mitigation

Policy: Policies restricting or banning use
of fossil fuels, or applying a cost on carbon• Climate-related demand scenarios, leveraging our lower carbon intensity and GHG
mitigation initiatives, to inform business decision making

Technology: Adoption of disruptive
technologies and/or slow developmentof GHG reduction technologies• Accelerated development of our technology portfolios, including synthetic fuels,
lower-carbon hydrogen production, liquids-to-chemicals, CCUS and CCS technologies

Market: Loss of demand for hydrocarbons
as customers move to achieve their
GHG targets• Diversification into lower GHG emitting products with longer life cycles,e.g., chemicals and materials supporting the energy transition

Legal: Potential exposure to climate-related
litigation• Accurate and transparent reporting and disclosures with independent assurance.

Reputation: Impact on corporate reputation• Stakeholder engagement, including independent external consultants and subject
matter experts to advise on reporting and disclosures, and explain the Company’s
energy transition pathway

Our climate change and energy transition framework
is informed by the circular carbon economy principles
of reduce, reuse, recycle, and remove.
We have four pillars that provide the framework forour climate change initiatives and investments:

Differentiate

Sustain

Diversify

GHG emissions management

Transport technologies and fuels

Materials transition

Upstream carbon intensity

Hydrogen and ammonia

Liquids-to-chemicals

Energy efficiency

Natural gas

Nonmetallics deployment

Flaring and methane reduction

Renewable energy

A leader in lower upstream
carbon intensity operations

Providing customers withlower emissions solutions

Developing andgrowing lower emissions
value chains

EnableInvesting in lower carbon emissions
technologies and solutions

Leveraging technology
Carbon capture and storage
Natural climate solutions and carbon markets
Aramco Ventures

1. For more details, view “Managing Risk Exposure” section of the 2023 Aramco Annual Report.
26

ARAMCO | SUSTAINABILITY REPORT 2023

ARAMCO | SUSTAINABILITY REPORT 2023

27

OVERVIEW

CLIMATE CHANGE
AND THE ENERGY
TRANSITIONSAFE OPERATIONSAND PEOPLE
DEVELOPMENTMINIMIZINGENVIRONMENTAL
IMPACTGROWINGSOCIETAL VALUE

GOVERNANCE

DATA

Differentiate I Sustain I Diversify I Enable

A leader in lower upstream
carbon intensity operations
Our upstream low carbon intensity provides Aramcowith an inherent competitive advantage in the futureenergy landscape. It is the result of our unrivaled
initiatives, which start at the subsurface.

These endeavors range from how we manage ourreservoirs and the technologies we use to aid in water
management, to our investment in megaprojects,
infrastructure and digital solutions which help us
reduce and manage our emissions at the surface.

Managing emissions begins at the subsurface

All of our production strategies have enabled outstanding water management performance throughout
our reservoirs over many decades. Produced water management plays a key role in lowering carbon intensity,
by reducing energy demand to lift fluids, separate, treat, and dispose or reinject the produced water.

Sustainable reservoir
management

Advanced reservoir
modeling (TeraPOWERS)

Geosteering andmultilateral wells

Advanced smart wellcompletions

Our philosophy ofsustainable reservoir
management is whatsets us apart. Instead of
maximizing production
from our fields, weprioritize the long-term
health of our reservoirs,
and opt to produce atlower rates, which
prevents premature water
breakthrough and canpotentially and irreversibly
damage reservoirs.

To optimize our wellplacement and fielddevelopment plans,
we use advanced
simulators, such as
TeraPOWERS, which
can predict water
movement within
the reservoir andhelp to optimize
production efficiency.

Using real-time data,
our engineers andscientists can steer
multilateral wells withmaximum reservoir
contact, resulting inprecise well placement.
This helps targethydrocarbon zones,
while minimizing theenergy-intensive
production of
associated water.

Our production wells
utilize advanced valvesand devices, which candetect and manage
unwanted waterproduction at thesubsurface. This reduces
power consumption andCO2 emissions.

Oil and gas reservoirs are thousands of feet below
the surface. They are complex, made of different
rocks and fluids, and are therefore dynamic.
The technologies it takes to map, navigate and target
specific zones in the subsurface is our specialty.

We devise field development plans to ensure thehealth and sustainability of our reservoirs using thelatest technologies, while keeping our energy andemissions intensity in mind.

Investing in infrastructure, technologies, and digital solutions
Our investments in infrastructure to capture and reduce flared gas, along with our continuous development anddeployment of digital solutions to monitor, manage, and reduce our energy intensity and flaring emissions sets us
apart from most producers. In 2019, Aramco was benchmarked1 with the lowest energy intensity among major oil
and gas producers, and we have maintained a flare volume of <1% of total raw gas production since 2012.

Master Gas System

Launched in 1975, theMaster Gas System
is one of the biggest
projects in Aramco’s
history, and has been
integral to transforming
the Kingdom’s energy
mix. The system allows
the Company to utilize
the gas it produces,
rather than flaring it,
and has resulted in an
estimated annual
avoidance of flared
gas equivalent to
100 MMtCO2e a year.

Flare gas minimization
and recovery

Digital solutions andreal-time monitoring

Leak Detection& Repair (LDAR)

All our facilities haveflare minimization
roadmaps, and many ofour plants are equippedwith Flare Gas Recovery(FGR) systems to further
reduce flaring.

Aramco deploys a vastarray of digital solutions
to optimize energy
efficiency, including
technologies of the
Fourth Industrial
Revolution (4IR), such as
cloud computing, AI, andBig Data. These solutions
allow us to monitor andmitigate flaring, reduce
CO2 emissions, andenhance productivity.

The LDAR is a robust
program to proactively
monitor and repair
methane leaks. Millionsof points are surveyed
annually in every
producing facility toensure that we identify
and swiftly repair any
potential leaks. This is
one of the reasons weachieved and continue
to maintain our low
upstream methane
intensity (0.05%).

1. Benchmark by Solomon Associates
28

ARAMCO | SUSTAINABILITY REPORT 2023

ARAMCO | SUSTAINABILITY REPORT 2023

29

OVERVIEW

CLIMATE CHANGE
AND THE ENERGY
TRANSITIONSAFE OPERATIONSAND PEOPLE
DEVELOPMENTMINIMIZINGENVIRONMENTAL
IMPACTGROWINGSOCIETAL VALUE

GOVERNANCE

DATA

Differentiate I Sustain I Diversify I Enable
Our net-zero ambition
Aramco's ambition is to continue to mitigate GHG
emissions from our operations and achieve net-zero
Scope 1 and Scope 2 GHG emissions by 2050 across ourwholly-owned operated assets. We know that meeting
our net-zero ambition while continuing to meet global
energy demand will be a huge challenge.
Aramco is leveraging its R&D and technology initiatives
to develop and implement innovative approaches that
could help lower emissions across our industry andhave potential application in other industries.
GHG emissions
We are aiming to abate 52 MMtCO2e per annum
by 2035 from our wholly-owned operated assets
compared to our business-as-usual 2035 forecast
emissions. This abatement will be achieved throughenergy efficiency projects, flare and methane
minimization, carbon capture and storage, increasing
renewable energy use, including the use of natural
climate solutions, and using offsets to address hard
to abate emissions in our operations.
The Company’s GHG emissions management program
monitors Scope 1 and Scope 2 emissions from whollyowned operated assets, in a manner consistent with
the GHG Protocol. As we strive for continuous
improvement in our Sustainability Reporting, we haveupdated our methodology in line with the most
up-to-date reporting guidance, with a view to enhancetransparency and accuracy, and ensure we provide
relevant data. To this end, we have adopted a marketbased methodology approach alongside our locationbased approach to calculate applicable GHG emissions
to provide a more accurate inventory.
Under the market-based methodology, for 2023 ourScope 2 emissions are 13.0** MMtCO2e (as compared
to 18.2** MMtCO2e under a location-based method).
Our 2035 interim ambitions and associated GHG
emissions mitigation levers have been developed for
Scope 2 emissions based on a market-based approach.
Aramco plans to report both location-based andmarket-based approaches to ensure transparency
in comparison with previous years.

In 2023, total Scope 1 and market-based Scope 2
GHG emissions increased by 2.0%, equivalent to
1.3 MMtCO2e in 2023 compared to the previous year.
Scope 1 emissions decreased by 2.3% compared to 2022
mainly due to lower hydrocarbon production during
the year, and the introduction of a revised CO2 venting
emissions methodology for gas processing operations
to account for dynamic CO2 concentrations, resulting
in a more accurate accounting methodology. Scope 2
emissions (market-based) increased by 26.3% comparedto the previous year primarily due to the inclusion of the
Jazan Refinery (stabilized units) in the 2023 GHG
emissions inventory, and an increase in gas production.
In 2023, we completed bottom-up assessments of ourassets, to better identify and prioritize opportunities
to meet our interim and 2050 climate ambitions.
These assessments are supported by ongoing efforts
including energy optimization and energy efficiency.
Upstream carbon intensity
An important metric for Aramco is the carbon intensityof upstream operations, which is among the lowest
relative to major crude oil producers per barrel of oil
equivalent and has been achieved through effective
reservoir management, a low depletion rate
operational model, and a focus on energy efficiency.
Our 2035 upstream carbon intensity target of 15%
reduction from a 2018 baseline remains
unchanged.  Adopting a market-based methodology,
our target is now 7.7 kg CO2e/boe (using the 2018baseline of 9.1 kg CO2e/boe). Under our previously
reported location-based methodology, the target was
8.7 kg CO2e/boe (using the 2018 baseline of 10.2 kg
CO2e/boe). ­­In 2023, our upstream carbon intensity (market-based)
was 9.6** kg CO2e/boe (as compared to 10.7** kg
CO2e/boe under location-based method), andincreased 3.2% compared to 2022, largely due to lower
upstream production and other operational activities,
including increased gas production and storage.
Gas is more energy and carbon intensive to produce,
yet it provides lower emitting fuel for the power sector
when displacing liquids. The storage of gas which
commenced in 2023, impacts the upstream carbon
intensity. The gas which is produced and stored isremoved from the volume of hydrocarbon marketed,and thus increases the upstream carbon intensity.

Total Scope 1 and Scope 2 emissions1(million metric tons of CO2e)2023

67.3**,22022

66.0**,22021

67.8**,2

Upstream carbon intensity 1(kg CO2e/boe)
2023

30

9.6**

2022

9.3**

2021

10.7**

ARAMCO | SUSTAINABILITY REPORT 2023** T his figure has undergone external limited assurance in accordance
to the ISAE 3000 (revised). The assurance report can be found online
on the Sustainability section of our website.
1. The 2023 and 2022 figures for Scope 2 emissions and upstream carbon
intensity are reported using the market-based method. The 2021 figures
for Scope 2 emissions and upstream carbon intensity are based on thelocation-based method.
2. The Jazan Refinery is excluded from our GHG reporting in 2022 and2021. In 2023, only the stabilized units of Jazan Refinery are included in
our GHG reporting.

As part of our ongoing initiatives to address carbon
intensity we have delivered a first pilot shipment of
2MM bbl of Arabian Light crude oil with a productlevel carbon emissions. This first shipment entailed
the calculation of a total carbon intensity of 6.39** kg
CO2e/boe, of which the production and loading
stages were 2.42** kg CO2e/boe, demonstrating theinherent competitive advantage of our lower upstream
carbon intensity.
Value chain emissions
While our focus is on the management of GHG
emissions from our wholly-owned operations that arewithin our direct control, we also support the energy
transition through developing technologies that aim tolower-GHG emissions.
Our investment in hydrogen, chemicals, and renewableenergy sources and the increasing share of gas in our
production are intended to provide lower emissions
products and energy to our customers. We continue toinvest in a number of product stewardship partnerships
and technologies to reduce emissions, including
research and development into lower emissions
transport solutions.
Our $1.5 billion Sustainability Fund, which invests
in breakthrough technologies and startups to findsolutions to complex climate challenges, is evidenceof our holistic approach and support to theenergy transition.

The Oil and Gas Decarbonization
Charter (OGDC) launches at COP28
Sustainability in action

In December 2023, the United Arab Emirates’
COP 28 Presidency and the Kingdom of Saudi
Arabia established the landmark Oil and Gas
Decarbonization Charter (OGDC). Aramco playeda key role in the development of the OGDC. The
objectives of the charter are to align the oil andgas industry on various key areas, which include:• Aiming to reach net-zero emissions (Scope 1
and 2) for operations under control by 2050;• Aiming for near-zero upstream methane
emissions by 2030; and• Aiming for zero routine flaring by 2030.
Signatories of the OGDC included than 50
companies that represent more than 40%
of global oil production.
For more information please click here.

** T his figure has undergone external limited assurance in accordance to the ISAE 3000 (revised).
The assurance report can be found online on the Sustainability section of our website.
ARAMCO | SUSTAINABILITY REPORT 2023

31

OVERVIEW

CLIMATE CHANGE
AND THE ENERGY
TRANSITIONSAFE OPERATIONSAND PEOPLE
DEVELOPMENTMINIMIZINGENVIRONMENTAL
IMPACTGROWINGSOCIETAL VALUE

GOVERNANCE

DATA

Differentiate I Sustain I Diversify I Enable

Levers to meet
our interim
climate ambition

To mitigate 52 MMtCO2e from our businessas usual emissions by 2035, we are focusing
on five key levers: energy efficiency across
our upstream and downstream assets;further reductions in methane and flaring;increased use of renewable energy sources;
CCS; and development or purchase of offsets
to help address hard-to-abate emissions.
In 2023, detailed studies at the asset-level
were completed, and have enabled
Aramco to update the mix of abatement
opportunities across all five levers while also
supporting our 2035 mid-term ambition andits associated abatement of 52 MMtCO2e.
Furthermore, the redistributed mix ofabatement across levers optimizes costand capitalizes on synergies.

Energy efficiency

Since energy efficiency continues to
be at the heart of our work at Aramco,
the planned abatement associated withenergy efficiency has been refined from11 MMtCO2e to 7 MMtCO2e. This
reduction can be attributed to thedetailed studies at the asset levelcompleted in 2023 and Aramco’s
long-standing Energy Management
Program, which started in 2000 and has
achieved a cumulative emissions
reduction of 31.43 MMtCO2e.
Our actions in 2023
• Implemented 110 energy efficiency
initiatives resulting in energy savingsof 6,700 boed, and the avoidance of
0.73 MMtCO2e• Implemented an ambitiouscogeneration transformation program
to improve operational efficiency
reducing corporate energy intensity
by 23% and recognized as a bestpractice case study by the World
Economic Forum• Developed an advanced energy
demand forecasting solution for
26 operational facilities

Flaring and methane

Aramco is among industry leaders
in both upstream methane andflaring intensities due to decadesof investments in digital andengineering solutions.
Our actions in 2023
• 8.9 billion scf of flare gas wasrecovered in 2023 due to more
efficient operations of FGR systems
across several facilities• Maintained upstream methane
intensity of 0.05% despite expansion
in gas production• Enhancements in flaring minimization
roadmaps resulted in avoidance of
527 MMscf from Midyan andUthmaniya Gas Plants• As part of Leak Detection & Repair
program, millions of components
were surveyed across our facilities
to identify potential methane leaks
and 1,800 repairs were conducted.
• Deployed a satellite methane
monitoring campaign for key upstream
assets to monitor methane emissions• Optimization of operation andcontrols for gas processing, gas
turbines, and compressors

GHG emissions mitigation
by 2035

52

MMtCO2e7

MMtCO2eAramco is advancing technologies forboth CO2 capture and storage, andinvesting in world-scale CCS capabilities.
We plan to store up to 14 MMtpa by
2035 – contributing towards theKingdom reaching its goal of 44 MMtpa
of CCUS by 2035.
Our actions in 2023
• The CCS lever has been increased
from 11 MMtCO2e to 14 MMtCO2e,
as Aramco is seeking opportunities
from scope-optimization to enhance
the CCS lever• Continued development of CCS,
Aramco has a target to store
14 MMtpa by 2035, of which 6MMtpa
is planned at the Jubail CCS Hub.
Phase 1 of the project targets to store
up to 9 MMtpa by 2027, of which
6MMtpa is dedicated to Aramco and
3MMpta to non-Aramco facilities• Piloted a novel CO2 geologicalsequestration solution incollaboration with KAUST, using
in-situ mineralization by injecting
in basalt formation, permanently
converting CO2 into carbonate rocks

Renewables

Aramco has a target to invest
in up to 12 GW of solar and windenergy by 2030, and is exploring for
geothermal energy in the Kingdom.
We are also investing in advancing
renewables technology.
Our actions in 2023
• Reached full capacity and commercial
operation at the Sudair Solar PV
plant, one of the largest solar plants
in the region with a capacity of
1.5 GW1, in January 2024
• Entered into an agreement for twosolar PV projects – Al Shuaibah 1 andAl Shuaibah 2, which will generate
an aggregate capacityof over 2.7 GW1 of renewableelectricity. Commercial operations
are expected to commence in 2025
• Continued exploring geothermalenergy opportunities and identified
three potential areas on the west
coast of Saudi Arabia• Deployment of solar PVs as the powersource in remote drill sites andoffshore platforms• Established collaboration with Siemens
Energy to develop a Direct Air Capture
unit in Dhahran. The unit is expected
to be completed later in 2024

• Enhanced boiler and pump efficiencies• 40 Aramco organizations havereceived the ISO 50001 certification
for their energy management systems

Carbon captureand storage

1

MMtCO2e14

MMtCO2eNatural climate solutions
and offsets

Aramco continues to assess
opportunities to expand our inKingdom mangrove planting efforts
and is now evaluating the suitabilityof inland mangrove planting within theKingdom. Beyond this, Aramco isevaluating additional opportunities
for planting mangroves outside theKingdom, and will continue tocomplement our plantation efforts
with high quality carbon credits as
feasible to build a portfolio of carbon
offsets that aim to address hard-toabate emissions.
Our actions in 2023
• Planted approximately 6.5 million
mangrove trees in-Kingdom, whichbrings the cumulative total to over 30
million mangrove trees. Third-party
validated total carbon stock ofplanted and existing mangroves
equals nearly 445,000 tons of CO2e
cumulatively since we started ourmangroves plantation in 1993
• Participated as a lead bidder inthe largest voluntary carbon credit
auction in Nairobi, Kenya andpurchased one million credits ofrecent vintages• Retired around 500,000 carbon
credits, equivalent to 0.5 MMtCO2e,
against corporate emissions

14

MMtCO2e16

MMtCO2e

1. For solar energy projects: Sudair solar plant’s capacity 1.5 GW AC is equal to 1.8 GW DC; capacity of Al Shuaibah 1 and Al Shuaibah 2 solar PV projects is 2.7 GW AC, which is equivalent to
3.2 GW DC.
32

ARAMCO | SUSTAINABILITY REPORT 2023

ARAMCO | SUSTAINABILITY REPORT 2023

33

OVERVIEW

CLIMATE CHANGE
AND THE ENERGY
TRANSITIONSAFE OPERATIONSAND PEOPLE
DEVELOPMENTMINIMIZINGENVIRONMENTAL
IMPACTGROWINGSOCIETAL VALUE

GOVERNANCE

DATA

Differentiate I Sustain I Diversify I Enable

Energy management and energy efficiency
Aramco started its energy management program
to improve energy performance in 2000. Since 2013,
Aramco operations’ energy intensity has improvedby 13.4%. In 2022, we expanded the reporting of ourenergy intensity metric by including our operationallycontrolled affiliates both global and in-Kingdom.

40

Aramco organizations received
ISO 50001 certification for theirenergy management systems

Cogeneration plants, operationalenergy optimization, equipment load
management, and upgrades to moreenergy-efficient equipment have allcontributed to improving energy
performance.

Energy intensity1(thousand Btu/boe)
153.8

2023

146.2

2022

116.6

2021

**

In 2023, Aramco’s energy intensity was 5.2% higher
than in 2022. It is noteworthy that the accounted
increase in energy demand is not coupled by anincrease in accounted production associated withrefineries and some affiliates. There was a 6.5%
increase in energy demand at our operationallycontrolled affiliates. Additionally, Jazan Refinery’s
stabilized units were also added to the measured
energy demand in 2023. The increase in gas
production, processing and storage2 impacted theenergy intensity, along with lower overall production.
Energy efficiency actions:• Commissioning of combined cycle steam turbine
generator at Shaybah Producing facility avoiding 75.6
MtCO2e per year;• Reduction of steam reserve at Abqaiq Plants
avoiding 44 MtCO2e per year;• Optimization of chilled-down operation at
Berri Gas Plant avoiding 22.6 MtCO2e per year;• Energy Efficiency Enhancement Study to optimize
power demand at Manifa field resulted in
552 MWh electricity reduction in 2023 equivalent
to 0.38 MtCO2e per year;

Embracing 4 IR to become even more energy efficient
Sustainability in action

Aramco has developed an advanced Energy Demand
Forecasting Solution. The solution utilizes the latest 4IR
digital capabilities such as artificial intelligence, advanced
analytics, and machine learning for the purpose of forecasting
the future energy demand and associated CO2 emissions
in our industrial facilities, with an accuracy of up to 99%.
This forecasting solution will help develop strategies toenhance future energy performance, while reducing
associated CO2 emissions.

Highlights• Reducing corporate energy intensity by 1%-1.2% througheffective monitoring and target setting at facilities where
Energy Demand Forecasting Solution is implemented.
• Supporting corporate GHG emissions mitigation anddigitization efforts• Up to 99% prediction accuracy of energy demand basedon production plans
This solution was developed for 26 operational facilities.

• Continued optimizing HVAC and controls inbuildings to enhance energy efficiency and• 40 Aramco organizations have received theISO 50001 certification for their energy
management systems.
For the non-industrial sector, Aramco is embarking
on Energy Performance Contracting (ESCO) initiative
to accelerate enhancing the energy performance ofits built environment. Phase-I of the ESCO deployment
has been completed by awarding and signing the
Aramco’s first ESCO pilot project for the Dammam
Office Buildings. Accordingly, energy savings quick
wins in 100 targeted buildings were completed as aprerequisite to commence Phase-II of ESCO deployment
in these buildings. The Phase-II is expected to becompleted by 2025.
Cogeneration
Our investments in cogeneration facilities havecontributed to significant improvements in energy
efficiency for both our operations and the nationalgrid, where we export some of the generated power.
Highly efficient cogeneration plants enable us to
produce electricity for our operations utilizing what
would otherwise be wasted heat/energy, and areenabling self-sufficiency in electrical power generationfor our own operating plants. We analyze the real-timedata of the power generated, which allows us tofurther enhance energy efficiency.
We are harnessing what would otherwise be wasteenergy by maximizing the conversion of energy
released from the combustion of fuel into power andsteam to achieve improved thermal energy efficiency
and reduce overall GHG emissions. In 2023, we achieved
an average thermal efficiency of 71.0% (70.7% in2022) in our interconnected cogeneration facilities.
Several energy optimization studies were carried out
for the existing facilities and capital projects. The
studies identified energy efficiency initiatives
including optimum driver options, heat integration,and deployment of waste heat recovery technologies.
Although having a large fleet of cogeneration
plants (fleet size 8MW) significantly reduces theKingdom’s overall GHG emissions, it contributes
to our Company’s Scope 1 emissions as not all
generated power is consumed by Aramco, but someis exported to grid, lowering the Kingdom’s overall
grid emission factor.

** T his figure has undergone external limited assurance in accordance to the ISAE 3000 (revised). The assurance report can be found online on the Sustainability section of our website.

1. As we progress on our reporting journey and our controls around ESG data mature, for this metric from 2022 onwards, we have expanded the reporting boundary from Company in-Kingdom tooperational control. The 2021 figure is at a Company in-Kingdom level only.
2. The activity of compressing sales gas for injection and storage underground increases energy demand, while gas storage decreases sold hydrocarbon going into the calculation, increasing the reported
energy intensity.

34

ARAMCO | SUSTAINABILITY REPORT 2023

Award
Safaniya Offshore Producing and Uthmaniya
Gas Plant win the Clean Energy Ministerial
Energy Management Leadership Award
The Global Energy Management LeadershipAwards recognize leading organizations for theirenergy management achievements and raise theprofile of the ISO 50001 energy management
systems as a proven, broadly applicable solution
to global energy and climate change challenges.

Aramco’s cogeneration
facilities recognized by
the World Economic Forum

Sustainability in action

According to the World Economic Forum, theglobal manufacturing and production sector
is responsible for nearly 20% of global carbon
emissions, making it crucial for industries toincrease energy efficiency to reduce GHG
emissions and preserve resources.
Aramco has historically relied on Saudi Arabia’s
national power grid for power. In order to drive
operational efficiency improvements across ouroperations, we are implementing an ambitiouscogeneration transformation program to improve
operational efficiency, by utilizing the energy
of waste heat, thereby reducing energy
consumption from the Kingdom’s national grid.
The program has installed 17 high-efficiency
cogeneration facilities, reducing CO2 emissions byapproximately 7 million tons annually between
2011 and 2022, and lowering corporate energy
intensity by 23%.
This initiative was selected as a best-practicecase study in reducing industrial energy intensity
in the World Energy Forum’s whitepaper titledTransforming Energy Demand. The whitepaper
highlights Aramco’s ‘Lead by Example Program’,
which has improved energy efficiency in nonindustrial sectors like communities, buildings,
and transportation services by retrofitting
low-efficiency assets, resulting in a 27% reduction
in non-industrial energy sector use.

ARAMCO | SUSTAINABILITY REPORT 2023

35

OVERVIEW

Differentiate I Sustain I Diversify I Enable

Flaring

Although flaring is required at oil and gas processing
facilities for safety purposes, for decades we have beencreating solutions to reduce such flaring, from larger
infrastructure such as our Master Gas System andinstalling flare gas recovery systems at many of ourplants, to developing innovative digital solutions.
Our flare monitoring system is one example.
It addresses the challenges related to monitoring
and reducing flares. The solution provides companywide, real-time monitoring capabilities of all flaresources at an asset level.
Our flaring intensity in 2023 was 5.64** scf/boe,
up from 4.60** scf/boe in 2022, primarily due toincreased maintenance and operational activities,
as well as the inclusion of the Jazan Refinery’s
stabilized units in the 2023 GHG emission inventory
and flaring metrics reporting.

As part of the OGCI, members set a target to reduce
methane emissions from oil and gas operations. We
have surpassed the 2025 OGCI target of well below
0.20% already (we are at 0.05%) and continue to takeactions to further drive down our methane intensity.

• Continuous implementation of Flaring Minimization
Roadmaps, which lay out site-specific priorities
across Aramco operations to further reduce flaring.
In 2023, the roadmaps resulted in avoidance of
527 MMscf from Midyan and Uthmaniya Gas Plants.

Our upstream methane emissions decreased by 5.1%
despite an increase in natural gas production. Thiswas due to cumulative process efficiency
enhancements, including the installation of FGR
systems, high efficiency flare systems and adoptionof strict Flare Minimization Plans to reduce flaring
volumes and the rate of process gas sent to the flare,
thereby maintaining optimal combustion efficiency at• Investing in and developing innovative flaring
reduction technologies.
• Implementing new FGR projects for applicable
operational facilities – a major technology for flareminimization. The implementation and further
enhancement of FGR system at Fadhli Gas Plant
and Manifa Producing Plant avoided flaring of
1,396 MMscf.

5.64**,1
4.60

5.511

Flared gas(MMscf)27,50612023

23,8182021

125,8251

0.05

2023

**,1

2021

2022

Methane is a potent GHG with a higher global
warming potential than CO2 and thus managing it is apriority for Aramco and the oil and gas industry.

Upstream methane intensity
(%)

2023
2022

MINIMIZINGENVIRONMENTAL
IMPACT

SAFE OPERATIONSAND PEOPLE
DEVELOPMENT

MethaneHighlights• Aramco FGR systems in several facilities were
performing with high availability and reliability
which resulted in the recovery of 8.9 billion SCF
of flared gas in 2023.

Flaring intensity(scf/boe)

CLIMATE CHANGE
AND THE ENERGY
TRANSITIONAward
Khurais Producing Department wins the 2023
SEAL Business Sustainability Award
Khurais received the international Sustainability,
Environmental Achievement and Leadership (SEAL)
Business Sustainability Award1 for their initiatives
on GHG emissions mitigation, water conservation,and granted patents. Obtaining such recognition,
is a continuation of Khurais’s journey to reduce
emissions, leveraged by the department’s
workforce and advanced technologies.

Haradh gas plant reduces flaring
by 11%
Sustainability in action

Haradh gas plant reduced plant flaring by 11% asa result of the following initiatives:• Purge gas optimization study.
• Optimized the Hydrocarbon Thermal Oxidizer
maintenance duration and reduced the flared amountduring the maintenance by 70 MMscf.
• Mitigated leaks from flare control valves.
• Deployed online cleaning methodology for stabilization
system reboilers that eliminate equipment isolationand depressurization.

2022

0.05

2021

0.05

Upstream methane emissions(metric tons of CH4)
2023
2022
2021

27,708GROWINGSOCIETAL VALUE

GOVERNANCE

DATA

flare headers and reducing methane emissions. Other
process enhancements included application ofAdvanced Process Control (APC) systems to optimize
system efficiency and energy demand, minimizing
fuel gas consumption and associated combustion
related methane emissions.
Furthermore, our comprehensive Leak and Detection
and Repair (LDAR) program contributes significantly
to reducing fugitive methane emissions through thesystematic identification and repair of continuous
minute gas leaks. This year all Upstream assets weresurveyed and millions of components were monitored
to identify equipment that need repairs.
A total of 1,800 repairs were conducted in 2023 forboth Upstream and Downstream assets. The
reduction in absolute methane emissions is also
attributed to enhancements in the methane emissions
methodology to account for actual activity data, andthe ongoing LDAR program.
GHG Satellite Monitoring
Aramco is constantly seeking ways to enhance GHG
emissions monitoring and mitigation. The GHGSat
Satellite Constellation, a network of satellites, iscurrently being deployed after extensive trials anda program launched in 2023 to identify and monitor
methane emissions from Aramco’s in-Kingdom
operations. As part of our aim to monitor emissions,
we are using this cutting-edge space-based sensor
technology to identify and mitigate emissions sources
at a very detailed level of accuracy while supporting
LDAR activities.

29,19326,754

Sustainability in action

New methane emissions detection
technology piloted
In 2023, two new technologies were piloted at Hawiyah NGL Plant forcontinuous monitoring of methane emissions:• A Tunable Diode Laser Absorption Spectroscopy Methane Detection System• A remote sensing Fourier Transform Infrared spectroscopy system.
The newly piloted technologies will further increase our expertise in thefield of continuous methane emission monitoring, while enhancing our
performance in the LDAR Program, and prioritizing methane mitigation
actions at our operating facilities. Continuous methane monitoring is afast-evolving field in the oil and gas industry with multiple new emerging
methane detection and quantification technologies.

** T his figure has undergone external limited assurance in accordance to the ISAE 3000 (revised). The assurance report can be found online on the Sustainability section of our website.
1. The Jazan Refinery is excluded from our GHG and flaring reporting in 2022 and 2021. In 2023, only the stabilized units of Jazan Refinery are included in our GHG and flaring
metrics reporting.
36

ARAMCO | SUSTAINABILITY REPORT 2023

ARAMCO | SUSTAINABILITY REPORT 2023

37

OVERVIEW

CLIMATE CHANGE
AND THE ENERGY
TRANSITIONSAFE OPERATIONSAND PEOPLE
DEVELOPMENTMINIMIZINGENVIRONMENTAL
IMPACTGROWINGSOCIETAL VALUE

GOVERNANCE

DATA

Differentiate I Sustain I Diversify I Enable

Providing customers with lower
emissions solutions
Fuels and transport technologies
Transportation is a core element of the energy
transition. Aramco is exploring the development ofsynthetic fuels that produce lower GHG emissions andmaintain the same levels of performance. Aramco’s
lower carbon intensity crudes and investment in GHG
emissions mitigation initiatives in our refineries enableproduction of fuels with lower embedded carbon. We
are also exploring ways to improve the efficiency of
the internal combustion engine.

We recognize that achieving successful GHG
emissions mitigation of the automotive industry
necessitates a combination of various technologies.
These could include highly efficient internal
combustion engines (ICE), hybrid, synthetic fuels,hydrogen, and electric vehicles (EVs). To effectively
reduce GHG emissions from transportation, it is crucial
to invest in enhancing the efficiency of ICE vehicles,
considering that by 2050, approximately 56% ofvehicles are expected to still rely on this technology.
Lower-carbon emission ICE vehicles and alternative
fuels technologies have the potential to reduce
emissions by 50-75%. Furthermore, lower-carbon
emissions ICE vehicles and alternative fuels
technologies are expected to play a key role inlowering GHG emissions in regions where the power
grid relies heavily on coal as well as helping toalleviate strains on critical minerals supplies and grid
capacity associated with electrification.

Aramco delivers lower carbon
aviation fuels

Our Transport R&D team have presence all aroundthe world, including in Paris, Detroit, and Shanghai,and our research centers act as technology hubs toleverage the respective innovation ecosystems in eachregion. Scientists and technologists across the centers
are working closely with technology providers andautomakers to advance practical solutions for a moresustainable mobility future.
In 2023, at the Bahrain Grand Prix races, Aramcosupplied fuels containing 55% bio components forthe first competitive use, which were used in Formula 2
and Formula 3 cars. This is a transitionary step as
the championships work toward ambitions by 2027.
Our intention is to introduce synthetic components tothe formulation from 2025 onwards.

Aramco and ENOWA, NEOM's energy and watercompany, signed a joint development agreement
to construct and establish a first-of-its-kind synthetic
fuel demonstration plant. The project will be locatedin ENOWA's Hydrogen Innovation and Development
Center (HIDC) and aims to demonstrate technicalfeasibility and commercial viability of synthetic
gasoline from renewable-based hydrogen andcaptured carbon dioxide. The demonstration plantin NEOM is the result of intensive research anddevelopment efforts aiming to optimize theproduction of synthetic fuels.
In Bilbao, Spain, Aramco and Repsol are exploring
the production of synthetic diesel and jet fuel for
automobiles and aircrafts.

We have also been carrying out extensive research
into the potential of algae-based biofuel, and haveproduced the first batch of biocrude from microalgae.
Our efforts are part of a wider exploration of how
we can make more use of nature-based solutions in
our operations. For example, we are exploring how
algae-based products could potentially be used in
our upstream operations, including drilling. We are
exploring ways to convert algal biocrude into drilling
fluids, such as oil-based muds.
Lower carbon aviation fuelAs the global aviation industry works towards
addressing its GHG emissions and net-zero ambitions,aviation fuels, notably Sustainable Aviation Fuels(SAF) may account for a 65%1 share of measures toaddress this ambition. However, there are current
challenges with scaling the production and deploymentof SAF required to meet industry targets. For example,
the cost of SAF is currently 3 to 5 times the cost of jet
fuel and substantial upfront investment costs will be
required for SAF facilities.
Aramco is working towards being a provider oflower carbon aviation fuels (LCAF), which have lower
carbon intensity compared to the global average forjet fuel and are compatible with existing fuelinginfrastructure. This could offer a viable transitionaland complimentary to SAF solution while also
providing the added benefit of having 10% lower
GHG emissions compared to conventional jet fuel.
LCAF can be incorporated as a fossil-based aviationfuel that meets the United Nations International
Civil Aviation Organization, Carbon Offsetting andReduction Scheme for International Aviation (CORSIA).

Hydrogen and ammonia
Aramco is championing the Kingdom's ambition
to be a world-leading producer of efficient fuels,
through a plan to produce 11 MMtpa of blue
ammonia by 2030. Aramco's CCS development
is instrumentaI to both production of hydrogenand the resulting CO2 being captured andsequestered, and facilitating the Kingdom's GHG
emissions mitigation ambitions.
In 2023, a first shipment of independently-certified
blue ammonia was delivered to Japan for use as fuelin power generation with the resulting CO2 being
captured and sequestered.
The shipment was the result of a successful multiparty collaboration across the lower-carbon ammonia
value chain. The ammonia was produced by SABIC
Agri-Nutrients with feedstock from Aramco, and soldby Aramco Trading Company to the Fuji Oil Company.
Mitsui O.S.K. Lines was tasked with shipping theliquid to Japan, then the ammonia with the resulting
CO2 being captured and sequestered was transported
to the Sodegaura Refinery for use in co-fired power
generation, with technical support provided by JapanOil Engineering Co.
Ammonia is significantly more convenient, practicaland cost-effective than hydrogen in its transport, bothin terms of the required temperatures and pressure
conditions. We are helping chart a course for thisvital commodity, which is also an important energy
source in its own right that will help to mitigate
GHG emissions in key sectors.

Aramco contributes to a crediblehydrogen market

Sustainability in action

Sustainability in action

Aramco’s jet fuel production in the Kingdom of
Saudi Arabia has a lower carbon intensity (CI)
than conventional jet fuel compared to the global
average and is compatible with existing fuelinginfrastructure and procedures. In view ofaddressing GHG emissions in the aviation sector,
LCAF is envisaged to hold complementary roles andbe a part of the aviation fuel mix along with otheralternative fuels such as SAF and synthetic fuels.
Aramco has recently completed the validation of
the CI of its jet fuel production from some of its
in-Kingdom refineries and is subsequently working
towards LCAF certification, as per requirementsfrom the Carbon Offsetting and Reduction Scheme
for International Aviation (CORSIA).

The Open Hydrogen Initiative is led by GTI Energy, S&P
Global Commodity Insights, and in partnership with theUnited States Department of Energy to lay the foundation forhydrogen markets by creating objective, peer-reviewed, andopen-sourced tools to measure and assess the carbon intensityof hydrogen production at the facility level.
In line with the Company’s strategic theme of pursuinglower-carbon initiatives, Aramco is collaborating with morethan 40 other organizations spanning industry, environmental
NGOs, academia, and government entities to develop a
first-of-a-kind framework to advance efforts to reduce carbon
emissions of this energy sector and be a player in supportinga transparent, credible, and harmonized hydrogen market.

1. Source: IATA. Net-zero 2050: sustainable aviation fuels (iata.org)
38

ARAMCO | SUSTAINABILITY REPORT 2023

ARAMCO | SUSTAINABILITY REPORT 2023

39

OVERVIEW

Differentiate I Sustain I Diversify I Enable

MINIMIZINGENVIRONMENTAL
IMPACT

The Kingdom’s utilities sector is positioned toundergo a major transformation driven by the
Saudi Green Initiative (SGI), which aims to have
50% of the Kingdom’s power generation capacityfrom renewables, with the balance of 50% from gas.
This policy has a multi-fold impact of more efficient
power generation for gas compared to liquid burning,and significantly lower-GHG emissions.

Building the first undergroundgas storage facility in the Kingdom
Raising our gas production is an essential part of our long-term strategy,
allowing us to drive emission reductions in the Kingdom by displacing theburning of oil liquids in electricity generation.

Aramco has a pivotal role in facilitating this transition
both through the Company’s gas expansion plans,and equity participation in Public lnvesment Fund’s(PIF) renewable projects.

However, domestic electricity demand is typically seasonal, with consumption
in the peak summer months significantly higher than that in the wintermonths. To meet this challenge and to avoid the need to use higher emission
energy sources to meet short term demand spikes, gas storage is key.

The Saudi government has established a National
Renewable Energy Program, in 2016, with the goalof increasing the generation capacity of renewableenergy sources. Aramco supports the Kingdom
on this journey as a part of a partnership with PIF
in its renewable energy program.

The Hawiyah Gas Compression and Storage Facility – which is based in the
middle of the world’s largest onshore oilfield – receives gas from our Master
Gas System, an extensive network of pipelines connecting Aramco’s key gas
production and processing sites with customers throughout the Kingdom.
The received gas is then compressed and injected underground into thedepleted Unayzah reservoir, ready to be stored until needed, at which point
it is re-injected into the Master Gas System.

Solar
In 2023, the 1.5 GW1 Sudair solar plant, the firstproject developed by a consortium with PIF and
ACWA Power, has received the full commercial
operation certification from the power offtakerand the entire contracted capacity is now in fulloperation.

Hawiyah is designed to inject up to a 1.5 bscfd and has the capacity towithdraw up to 2.0 bscfd of the stored sales gas.

Our gas investment is key to the Kingdom's plan todiversify its energy mix by cutting its use of higher
emitting liquid hydrocarbons for power generation,and build on the Company's strategy to produce
valuable feedstock for the petrochemical industry.

SAFE OPERATIONSAND PEOPLE
DEVELOPMENT

Renewable energy

Sustainability in action

Natural gas
Natural gas is a key enabler for the energy transition,
as it is highly compatible with intermittent renewableenergy for power generation, and provides more
efficient power than other conventional forms of
non-renewable energy.

CLIMATE CHANGE
AND THE ENERGY
TRANSITIONGROWINGSOCIETAL VALUE

GOVERNANCE

DATA

The consortium has achieved financial close of Al
Shuaibah 1 and Al Shuaibah 2 solar PV projects withan aggregate capacity over 2.7 GW1. The commercial
operation for Al Shuaibah projects are expected tocommence in 2025. Aramco plans to use theallocation of renewable energy certificates (RECs)
from these investments. Aramco continues to assessother opportunities to advance its progress inrenewable energy.
Geothermal
We are undertaking activities led by the explorationarm of the Company to evaluate the potential ofgeothermal energy in the Kingdom.
Three potential locations on the Western coast of
Saudi Arabia have been identified and mapped usingsophisticated subsurface technologies, and steps areunderway to assess the extent of geothermal resourcesat each location. Alternative potential areas will beconsidered in the future to add to the Kingdom’s
portfolio of alternative energy sources.

We are supporting the Kingdom’s Liquid
Displacement Program, which aims to displaceabout 1 MMboed of liquids by sales gas, renewabledeployment and efficiency improvements by 2030.
Aramco's Master Gas System Phase III Expansion(MGS III) facilitates this major program by expanding
the gas supply capacity to the central and westernregions, and extending the network to the southern
region. In addition to supplying gas to utility plants,
MGS Ill also extends the network to 11 industrial
clusters in the Kingdom, enabling fuel switching,industrial growth, and lowering GHG emissions.

1. For solar energy projects: Sudair solar plant’s capacity 1.5 GW AC is equal to 1.8 GW DC; capacity of Al Shuaibah 1 and Al Shuaibah 2 solar PV projects is 2.7 GW AC, which is equivalent to
3.2 GW DC.
40

ARAMCO | SUSTAINABILITY REPORT 2023

ARAMCO | SUSTAINABILITY REPORT 2023

41

Value chains and thematerials transition

OVERVIEW

Differentiate I Sustain I Diversify I Enable

The materials transition

Reducing emissions in energy generation has been acore focus of climate mitigation efforts to date.
However, another key lever to achieving a transition
to lower emissions will be that of evolving how weuse, produce and dispose of the materials which form
the building blocks of the 21st century economy.
This “materials transition” will cover the entire
product value chain, and will be critical to meeting
surging demand for minerals, metals and materials
projected to take place in the coming decades, driven
by population and economic growth.
A viable materials transition will be key to unlocking
an orderly energy transition by redefining thematerials of modern life and mitigating emissions as
the world’s energy demand grows.
On the production side, hydrocarbons will be
increasingly be used without combustion, providing
essential feedstocks to the innovative new materials
needed in the energy transition.
For instance, each megawatt of installed solar andwind capacity currently utilizes around 8 to 10 tons ofpetrochemicals-based materials1.
Further sustainability will then be achieved througha process of materials circularity, whereby materials
and their emissions are recycled and reused both inproducts and in the form of alternative energy. One
notable initiative that Aramco is pursuing in thisregard is through the development of an advanced
circular polymer through our affiliate, SABIC.
The materials transition creates significant challenges
and opportunities, but among the latter is the chancefor the chemicals industry to steadily supplement
existing materials with more durable and sustainable
alternatives, such as polymer- and emerging carbonbased materials.
These alternative materials can help to drive GHG
emissions reductions across an array of industries
which are reliant on traditional materials such as
steel and concrete, including housing, construction,
infrastructure and renewables.

To maximize this opportunity, Aramco believes that thechemicals industry must strengthen and accelerate its
innovation efforts to continue developing more
durable and sustainable materials, at scale, while
reducing their cost; and, in the Kingdom of Saudi
Arabia, that establishing an advanced materials center

could strengthen and complement existing programs
and push the boundaries of innovation throughglobal collaboration.
Material substitution has a high potential to reducepressure on certain supply chains, given thatalternative materials have the necessary properties
to suit the given application.
Material substitution is likely to be driven by emission
savings and also cost. Durable hydrocarbon-basedmaterials can contribute to reduced carbon emissions
compared to most metals.
Examples of material substitution include EV lightweighting (reducing the weight of EV by substituting
certain structural elements) which can alleviatepressure on battery value chains; and copper
substitution with its’ conductive properties used inbatteries, cables for grid, solar panels, etc.
Aramco is pursuing a number of initiatives along
the value chain to drive this materials transition,leveraging our position as one of the world’s largest
integrated energy and chemicals companies.

Award
Yanbu Refinery achieves recognition in
the World Economic Forum Global Lighthouse
NetworkAramco has received the World Economic
Forum Global Lighthouse Network recognition
under WEF’s Shaping the Future of Advanced
Manufacturing and Production Platform. The
award recognizes Aramco’s use of the latest
4IR technologies to help produce energy withlower emissions.
In 2023, Yanbu Refinery was Aramco’s fourth
facility to be included, joining the Company’s
Abqaiq oil processing and stabilization facility,
Uthmaniyah Gas Plant, and Khurais Oil Complex.
Yanbu Refinery is one of 21 new facilities added
to the prestigious Network which now includes a
total of 153 manufacturing facilities around theglobe. We are the only international energy
company globally to be represented by morethan two facilities.

CLIMATE CHANGE
AND THE ENERGY
TRANSITIONSAFE OPERATIONSAND PEOPLE
DEVELOPMENTMINIMIZINGENVIRONMENTAL
IMPACT

Liquids-to-chemicals

As part of the wider materials transition, petrochemicals
are set to be the primary engine of oil demand
growth in the coming years, and Aramco is investingheavily in this sector as we continue to diversify ourportfolio into new, lower-emissions value chains.
In 2023, Aramco celebrated the groundbreaking of
the $7 billion Shaheen petrochemical project, inpartnership with S-Oil, in South Korea. Shaheen isamong Aramco's biggest international
downstream investments, representing asignificant and sizeable step forward in ourbillionliquids-to-chemicals expansion. It is expected
invested in Shaheen in
to be one of the largest integrated steam
partnership with S-Oil –crackers in the world. It is also the first major
a significant step in ourcommercial deployment of Aramco's thermal
liquids-to-chemicals
crude-to-chemicals technology developed
expansionin collaboration with Lummus Technology thataims to increase chemical yield with less energy
intensity. In addition to this, we have continued toadvance on our liquids-to-chemicals strategy in Asia,
acquiring a 10% interest in Rongsheng Petrochemical
in July 2023.

$7

GROWINGSOCIETAL VALUE

GOVERNANCE

DATA

Nonmetallic
deployment

Nonmetallic materials reduce carbon emissions
by up to 60% compared to equivalent carbon steel
solutions. They also promote in-Kingdom value byadding to local nonmetallic product manufacturers
and service providers.
Our Unconventional Resources program was
the first in the Kingdom to deploy the Reinforced
Thermo Plastics (RTP) flowline in sweet gas services
covering more than 1,000 km of RTP in flowlines
and is deploying further increments; which will reacha total of 15,000 km of RTP lines across all areas of
the Kingdom.

Sustainability in action

New materials for lower emission
construction solutions
Engineered Cementitious Composites (ECC)
are a special class of high-performancefiber-reinforced concrete with many potential
uses, as ECC are more ductile than conventional
concrete when applied in pavement, pipes,
and structure.
Its use has many benefits, for example ECC
pavement, for medium-traffic use, is anticipatedto have up to 50% lower CO2 emissions
compared to conventional concrete pavement.
Aramco is collaborating with the University ofMichigan, where the first demonstration of
ECC materials as road pavement has been
performed, and Aramco conducted a pilot
demonstration in Dhahran as well.

1. Energy Intelligence Whitepaper: Building Blocks of the Energy Transition (October 2023)
42

ARAMCO | SUSTAINABILITY REPORT 2023

ARAMCO | SUSTAINABILITY REPORT 2023

43

Investing in lower carbon
emissions technologies
and solutions

OVERVIEW

CLIMATE CHANGE
AND THE ENERGY
TRANSITIONSAFE OPERATIONSAND PEOPLE
DEVELOPMENTMINIMIZINGENVIRONMENTAL
IMPACTGROWINGSOCIETAL VALUE

GOVERNANCE

DATA

Differentiate I Sustain I Diversify I Enable

63%

of total R&D spend wassustainability-related

We believe that digital technologies can be a key
enabler for Aramco and the energy industry’s future
by allowing the optimization of operations, andenhancing sustainability. With this in mind, Aramco
has established a Digital Sustainability Flagship
Program to streamline all the digital efforts acrossthe Company related to climate and sustainability.

Research and development
In 2023, sustainability-related R&D was $540 million,
which equated to 63% of total 2023 R&D spend of$861 million2. Our R&D spend encompassed sustainability
focused solutions to improve our business and energy
efficiency, enhance company circularity, as well as
supporting the global energy transition.

Strategic technologies being developed to enableemissions mitigation or displacement include renewables
and energy storage, hydrogen production technologies,
nonmetallic applications development, Thermal
Crude-to-Chemicals deployment at our subsidiary S-Oil,lower-carbon fuels, engine technologies, as well as
CCS, including stationary carbon capture and direct
air capture.

In 2023, 20% of the new patents filed were insustainability technologies, an increase from 15%
the year before.

In addition, as a member of the OGCI, we
contribute financially to Climate Investment (CI),an independently managed, specialist investor.
Its mission is to drive near-term GHG emissions
mitigation through investment and market adoptionof our portfolio company innovations across a
network of investors and global partnerships. Over the
past six years, it has built a portfolio of 36 companies with
innovative products and services, operating in the energy,transportation, built environment, and industry sectors.

• An initiative called PowerSense, which conserves
and reduces energy by measuring the amountof electrical flow of each component at the rig;

Examples of ongoing R&D initiatives include:• CO2 mineralization to calcium and magnesium
carbonates utilizing cement and steel wastematerials;• In-situ generation of hydrogen in subsurface
formations; and• Development of digital platforms to drive efficiency
that can reduce Aramco’s GHG emissions.

R&D focus areas
CCS

2023 spend($ million)

2022 spend($ million)

40.0

41.5

Renewable energy

7.5

6.4

Energy efficiency

71.0

64.8

Waste management and recycling

16.3

32.3

Water management

50.1

32.2

Gas treatment

42.8

40.5

Lower-carbon hydrogen production

57.8

26.4

Sustainable mobility

208.9

136.6

Crude-to-chemicals

16.4

30.3

Nonmetallic applications

29.6

24.2

Total R&D for sustainability technologies1,2

540

435

Total Aramco R&D

861

737

% of sustainability-related R&D out of Aramco R&D spend1,2

63%

59%

1,2

Carbon capture and storage
With our deep understanding of the subsurface,
and utilizing advanced technologies, Aramcocontinues its journey to become one of the key
players in the CCS industry. The Company has
continued its efforts to avail CO2 sequestration
capacity, performing several assessments to identify
and develop new potential CO2 storage sinks.
Throughout 2023, site screening activities andviability assessments continued with a view to
identify potential storage sites through dataacquisition programs, including 3D seismic activities.
Jubail CCS hub progress
Following the collection of all the required subsurface
data, an advanced 255 million cell simulation model
was constructed to drive further optimization in thedevelopment plans for the Jubail CCS hub project.
Phase 1 of the CCS project aims for up to 9 MMtpa
CO2 by 2027 (from which up to 6 MMtpa will be
supplied from Aramco and remaining 3 MMtpa from
non-Aramco facilities), supporting the Kingdom’s goal
to sequester 44 MMtpa of CO2 by 2035.

Natural climate solutions
Natural climate solutions continue to play acomplementary role where emissions abatement ischallenging. In line with our interim target to plant
300 million mangroves in-Kingdom by 2035, Aramco
planted 6.5 million mangrove trees in-Kingdom in
2023, bringing its cumulative total to over 30 million.
These trees have been planted since 1993 when the
Company started mangroves plantation trials andexperiments at Abu Ali Island. We also had an
independent carbon stock assessment done on Saudi
Arabia’s mangrove plantation initiatives to quantify
the carbon sequestered to date of its planted andexisting mangroves. A third-party validated the total
carbon stock of planted and existing mangroves ofalmost 445,000 tons of CO2e.
The majority of mangroves (26.5 million) wereplanted over the last three years as part of our efforts
to develop natural climate solutions as part of our
GHG emissions mitigation program. As mangroves
mature, they sequester increasingly higher amountsof CO2, which projects a promising trajectory for CO2
sequestration by Aramco’s mangrove plantations overthe coming decades. In 2022 and 2023, Aramco’s
mangrove plantations sequestered 11,800 and 27,500
tons of CO2 respectively.

1. Includes direct R&D program costs plus estimated overheads.
2. This figure includes Company in-Kingdom plus Global Research Centers, SASREF, Motiva, ATC, ASC, AOC and SAAC.
44

ARAMCO | SUSTAINABILITY REPORT 2023

ARAMCO | SUSTAINABILITY REPORT 2023

45

OVERVIEW

Differentiate I Sustain I Diversify I Enable
Carbon offsets and carbon credits
Aramco supports the use of market mechanisms that
address climate change and sustainable development
as they offer a balance between driving emissions
reductions and supporting economic growth. To beeffective, they should cover all emitting sectors andall types of GHG emissions, recognize carbon intensity
differentiation, equity, and revenue neutrality, as wellas transferability of potential credits.

500,000

Aramco retired approximately 500,000
carbon credits in 2023, against a corporate
emissions plan to use carbon markets to
support the delivery of our 2035 and 2050
emissions mitigation ambition, whilecarbon credits retired in 2023
directing climate finance towards climatechange mitigation solutions. The use ofcarbon offsets is an important part of
Aramco’s net-zero planning as they enable mitigationof hard-to-abate emissions and allow us to accelerate
emissions reduction action, particularly where alternatives,
such as CCS, are not fully mature and scalable.

Due to the absence of an internationally unified
standard, we use existing, reputable frameworks
and benchmarks to ensure offsets are high quality.
These include the Integrity Council’s Core Carbon
Principles and CORSIA-eligible credits. We have also
developed additional internal quality criteria thatwould allow us to contribute to the Kingdom’s NDCs.
We intend to invest in projects with diverse economic
and social development benefits that promotebroader sustainable development goals, such asaccess to clean and affordable energy, job creation,enhanced biodiversity and women empowerment.

GROWINGSOCIETAL VALUE

GOVERNANCE

DATA

Aramco’s Sustainability Fund

During the year, Aramco Ventures invested in UK’s
OXCCU catalytic technology to convert hydrogenand carbon dioxide into sustainable aviation fuel,in addition to providing financing for Parallel Carbon,
a company that uses renewable energy for hydrogenproduction.

At Aramco, we invest in breakthrough technologies
and startups to find solutions to complex climate
challenges. As hydrocarbons remain a significant partof the world’s energy supply, we believe investment
should be proportionate to the challenges inensuring a stable and inclusive energy transition.
This is why in October 2022, we launched the $1.5
billion Sustainability Fund through our global
Climate tech investor globally venture capital arm, Aramco Ventures.

Top 10Recently, we have allocated an additional $4 billion
to Aramco Ventures, increasing its total investment
capabilities from $3 billion to $7 billion between
2024 and 2027.

The Sustainability Fund’s portfolio includes 27
investments with a total committed amount of$394 million. In 2023, the Sustainability Fundcommitted $239 million and closed investments in
17 companies. This has facilitated innovation in areas
like carbon capture, synthetic fuels, and building
energy efficiency. The Sustainability Fund is among
the largest sustainability focused venture capitalfunds in the industry.

Aramco continues to play a leading and enabling rolein supporting the development of the Regional
Voluntary Carbon Market Company in Saudi Arabia(RVCMC). We participated in RVCMC’s second auction,
the world’s largest of its kind, with the auctioning ofover 2 million CORSIA-eligible and Verra-registeredcarbon credits, of which one million were purchased
by Aramco.

In 2023, Aramco developed its Internal Guidelines
for Carbon Offsets and Crediting that commit tosourcing high integrity carbon credits. We aim todevelop a portfolio approach that could include spot
purchases, long-term offtake agreements, and equity
investment in projects. Our guidelines seek to balancecommercial decisions with optimizing the impact ofoffsetting. Carbon credits will be retired against
corporate emissions, assets, bundled products, or soldto promote third party reductions.

MINIMIZINGENVIRONMENTAL
IMPACT

SAFE OPERATIONSAND PEOPLE
DEVELOPMENT

CLIMATE CHANGE
AND THE ENERGY
TRANSITION

During the year, Aramco Ventures was named asa Top 10 Climate Investor globally by Climate501 an
annually published list that aims to recognize theworld’s top 50 most impactful climate investors,
and as a ‘Top 100 Innovator in the Energy Transition’
by Reuters2.
1. Acknowledged as a leading leading Climate Tech investor (Climate50)
2. Top 100 Innovator in the Energy Transition by Reuters, 2024

Spotlight on Aramco Ventures

Impactful climate investing

Aramco Ventures manages five funds. These are a Digital/Industrial Fund investing in technologies of strategic
importance to Aramco; the Prosperity7 Funds I and II investing in disruptive technology; the Sustainability Fund,which invests in start-ups with potential to support Aramco’s climate ambitions and the Late Stage Venturing Fundsupporting later stage investments. Aramco Ventures has offices in Saudi Arabia, the USA, Europe, and China.

Fund Structure
5 Funds under 3 Venturing Programs ($7 billion)

Aramco’s first verified carbon offset crude cargo

Aramco Ventures

Sustainability in action

In 2023 we launched a strategic initiative for a pilot project to deliver
Arabian Light crude oil with a product level carbon emissions intensity
and an emissions management plan in line with PAS2060 –using acradle-to-gate partial lifecycle assessment approach, as the first of its
kind in the Middle East.
This first pilot shipment entailed the calculation of total carbon intensityof 6.39** kg CO2e/boe of which the production and loading stages were2.42** kg CO2e/boe. Contributing to the lower carbon intensity of
Aramco’s pilot shipment were emissions reduction initiatives acrossrelevant facilities and the use of offsets for residual emissions sourced
from the Saudi-based RVCM of a certified renewable energy project in
the MENA region. Third-party verification was conducted by Lloyds
Register Quality Assurance (LRQA) and the corresponding Qualifying
Explanatory Statement is available online.
We believe an understanding of product level carbon emissions,alongside GHG emissions reduction initiatives and the optional use ofoffsets for residual GHG emissions, all third-party verified, can assist
stakeholders make more informed decisions.
** T his figure has undergone external limited assurance in accordance to the ISAE 3000 (revised). The assurance report can be found online on the Sustainability section of our website.
46

ARAMCO | SUSTAINABILITY REPORT 2023

Early-Stage Strategic Venturing

Invest in start-ups to accelerate their development and deployment in Aramco

1. Digital/Industrial Fund
$0.5 billion

2. Sustainability Fund$1.5 billion

IR4.0 solutions, industrial technologies,
and innovative applications ofhydrocarbon-based materials

GHG emissions mitigation and abatement,
new energy, and new materials supporting
Aramco’s long-term strategy

Diversification options support thedevelopment of next-generation
technologies

Digital, diversified industrial businesses
supporting Aramco’s long-term strategy

Later-stage investments creating strategic options for Aramco

EuropeHouston

4. Prosperity7 Fund II$2 billion

Headquarters

Americas
San Francisco

3. Prosperity7 Fund I$1 billion$2 billion

Invest with a focus on potential
Aramco long-term strategy targets

Prosperity7

Invest in disruptive start-ups that help support Aramco’s long-term diversification

5. Late-Stage Venturing Fund

Late-stage Venturing

Strategic Venturing

Early-Stage Diversified Venturing

Boston
New York

Saudi Arabia

Asia
Beijing

Oslo
DhahranAberdeen

ShanghaiLondonARAMCO | SUSTAINABILITY REPORT 2023

47

OVERVIEW

CLIMATE CHANGE
AND THE ENERGY
TRANSITIONSAFE OPERATIONSAND PEOPLE
DEVELOPMENTMINIMIZINGENVIRONMENTAL
IMPACTGROWINGSOCIETAL VALUE

GOVERNANCE

DATA

Differentiate I Sustain I Diversify I Enable
Direct Air Capture
In addition to developing technologies to capture carbon dioxide at the point ofemissions, we are also researching and testing solutions to reduce the cost of
capturing carbon dioxide directly from the atmosphere, via Direct Air Capture (DAC).
Aramco is collaborating with Siemens Energy to develop a DAC test unit in Dhahran,Saudi Arabia. The test unit, which is expected to be completed in 2024, is intended topave the way for a larger pilot plant. Captured carbon dioxide can be utilized as partof a circular carbon economy.

Supporting the energy and materials transition
through developing solutions and products

Carbon capture and storage hubs

Aramco aims to be a provider of LCAF, which have lower carbon intensity compared to
the global average for jet fuel and are compatible with existing fueling infrastructure.
Aramco is working towards LCAF certification for its jet fuel production from some of its
refineries as per the CORSIA requirements. LCAF aims to address the immediatechallenges associated with scaling the production and deployment of Sustainable
Aviation Fuels required to meet aviation industry targets.

If commercially scalable, CCS could be a key technology to enable the Company’s
emissions mitigation ambitions. Aramco is investing in world-scale CCS capabilities,
and will continue development, drilling, and evaluation activities, to establish a wide
portfolio of subsurface assets across the Kingdom. In partnership with Linde and
SLB, Phase 1 of the Jubail CCS hub is expected to be one of the largest in the world
with a capacity of 9 MMtpa. Aramco’s share of CO2 capture from its facilities is set toreach up to 6 MMtpa by 2027.

HydrogenCO2 mineralization
Aramco is developing novel methods for permanently sequestering CO2 throughmineralization. We have demonstrated one such method through a pilot technologythat stored up to 200 kg of CO2 per ton of cement while curing precast concreteat a local plant. Additionally, Aramco and KAUST piloted a novel CO2 sequestration
solution using mineralization, which involves dissolving CO2 in water and injecting it
into volcanic rocks in Jazan, Saudi Arabia. The process permanently converts CO2
into carbonate rocks.

Natural gas

Nonmetallics

Ammonia
Converting lower-carbon hydrogen to ammonia is a competitive solution for hydrogentransportation, given ammonia’s high volumetric energy density, which makes it
cheaper and safer to ship. Aramco has been helping to pioneer the development of a
global supply network for ammonia. In April 2023, Aramco, FOC, SABIC AN, MOL, andJOE collaborated to ship the first independently-certified ammonia cargo to Japan foruse in power generation. Aramco delivered two other shipments of accredited blue
ammonia in 2023 through its affiliates ATC and SABIC Agri-Nutrients.

ARAMCO | SUSTAINABILITY REPORT 2023

Aramco is striving to mitigate the emissions of the internal combustion engine,and our mobile carbon capture technology aims to achieve this by capturing CO2 at
the point of emission. Over the past decade, Aramco Transport Technologies R&D
team has road-tested prototypes for an array of vehicles and trucks, generating morethan a dozen granted patents and has licensed the technology to Daphne
Technology for carbon capture in marine vessels.

Aramco has ambitious plans to invest in 12 GW of solar and wind energy by 2030,
and is also evaluating geothermal energy resources in Saudi Arabia. In efforts toadvance renewables, Aramco has developed heat-tolerant flow batteries for storage,
integration and efficient use of renewable power in hot environments (temperature
over 55°C). Aramco is also developing cost-effective lightweight solar panels by
replacing glass front-sheets with transparent polymer-based materials.

Natural gas is expected to serve as a bridging fuel in a transition to a lower GHG emissions
future, and is displacing the burning of liquid fuels in the Kingdom. Aramco plans toincrease its natural gas production by potentially more than 60% by 2030 compared to2021 levels with a mix of conventional and unconventional gas. Aramco also made its firstinternational investment in LNG by signing a definitive agreement in September 2023 toacquire a minority stake in MidOcean, an LNG investment vehicle owned by EIG, which isin the process of acquiring Australian LNG projects as part of an initial phase of
acquisitions to create a diversified global LNG business.

48

Mobile carbon capture

Renewables

Materials

Lower-carbon Intensive Energy

Hydrogen has a lower life-cycle carbon intensity than traditional fossil fuels andcould help reduce emissions in hard-to-abate sectors such as heavy-duty transport
and industrial applications. In October 2023, Aramco entered into an engineeringagreement with Topsoe to construct a lower-carbon hydrogen production
demonstration plant at the Shaybah Natural Gas Liquids (NGL) recovery site in Saudi
Arabia. The demonstration plant will use renewable electricity in electrified steam
reforming of hydrocarbons to produce hydrogen for use in power generation, withthe resulting CO2 being captured and sequestered.

Carbon capture, utilization and storage

Lower carbon aviation fuels

The energy transition will rely in part on a concurrent materials transition, which
will see a massive increase in demand for both existing and alternative materials.
Aramco is a producer of nonmetallic materials for the oil and gas industry,
and we are developing similar solutions for the automotive, construction, packaging,
and renewable energy sectors. We are reducing the corrosion, weight, and costassociated with metals by replacing them with nonmetallic alternatives, such ascarbon fiber and composites.

Liquids-to-chemicals
Aramco is creating and deploying technologies to produce highly demanded chemicals
with less emissions. This is significant given that the chemical sector is one of thelargest industrial energy consumers. One example is the Shaheen petrochemical
project in South Korea, which represented the first major commercial deployment ofAramco’s thermal crude-to-chemicals technology, developed in collaboration with
Lummus Technology. We continued to advance on our liquids-to-chemicals strategy
in Asia, acquiring a 10% interest in Rongsheng Petrochemical in July of 2023.

ARAMCO | SUSTAINABILITY REPORT 2023

49

Captured within the dynamic environmentof Aramco’s operations, a female technicalprofessional embodies the Company’s
steadfast commitment to safety.

Safe operations
and people
development

Workforce protection and process safety................ 54
Human rights............................................................. 58
Labor practices........................................................... 60

50

ARAMCO | SUSTAINABILITY REPORT 2023

ARAMCO | SUSTAINABILITY REPORT 2023

51

OVERVIEW

CLIMATE CHANGE
AND THE ENERGY
TRANSITIONSAFE OPERATIONSAND PEOPLE
DEVELOPMENTMINIMIZINGENVIRONMENTAL
IMPACTGROWINGSOCIETAL VALUE

GOVERNANCE

DATA

Safe operations and people development
Performance of our key metrics

Our talented workforce is our greatest asset and we continue to invest heavily in developing
people. We employ an array of both traditional and innovative platforms and programs toensure our employees and contractors can realize their full potential safely and securely.
This approach is essential to our long-term success and is underpinned by our utilizationof the latest digital and AI technologies. Our aim is to continuously improve the capabilitiesof our people, enhance the sustainability and reliability of our operations, and protect our
workforce, assets, and communities.
In 2023, we delivered over 9 million hours of training1, increased the apprentice intake
by 27.3%, raised hired graduates by 14.1%, diversified our leadership with 26.3% growthin the percentage of females in leadership positions, and improved our safety performance byachieving a 16.0% reduction in total recordable case rate.
We remain steadfast in maintaining a strong culture of fostering a world-class poolof talent, developing future leaders and ensuring the safety of our operations.
These are fundamental strategic priorities for us to achieve our long-term objectives.

Material issue

Relevant metrics

2023

2022

Workforceprotection

Number of fatalities

3**

5**

J Read moreon page 54

Lost time injuries/illnesses rate
(number of LTI cases x 200,000/total work hours)
Total recordable case rate (total
recordable incidents x 200,000/
total work hours)
Health performance (%) (numberof overdue major health findings
x 100/total number of open major
health findings)

Process safety andasset integrity

Number of Tier 1 process
safety events

Human rights

Number of grievances raised

ŁƞľŅŀ
ŀƞŁļĿ

2022

Ŀƞńļľ

2021

ľĿĿ
ĽŃł

2022
2021

ĽĿł

95

Aramco is home to 73,311 employees

2

Number of female employees in leadership positions
2023

73,311

Total hours of training and development(per employee)

94*

0.050

19**

15**

15

11

230

293

100

100

2.2

2.4

J Read moreon page 58

Labor practices

Attrition rate (%)1

J Read more

Female (%) of total employees
Female employees in leadership
positions (%)
Number of contractor employees

2023

0.042

While we regrettably suffered three** losses of life,
we conducted investigations and communicated lessons
learned to the relevant stakeholders to minimize such
incidents from recurring.
For total recordable cases (TRC), incidents per 200,000 hours
worked decreased (16.0% fall in TRC rate since 2022). This isa testament to our investment in training initiatives andimplementation of a comprehensive Lessons Learned Program
to mitigate incidents of a similar nature from recurring.

None of the Tier 1 events were major, eight were moderate,
and the remaining were classified as minor. Five out of the
15 incidents resulted in LTIs.

on page 56

on page 60

Number of female employees

0.014**J Read more

Sites (%) with a grievancemechanism in place2023 performance

0.018**

StatusNumber of hired graduates
Number of apprentices(new Intake)
Number of interns

7.2

4.8

6.4
3.8

8,125

7,639

2,200

1,728

1,665

3,201

1,459

In addition to the many channels Aramco provides for
employees to raise issues and voice concerns, the company
also has a formal grievance process that is overseen by our
Personnel Department.
We ensure each Aramco site has an appropriate grievancemechanism in place for our workforce to raise any concerns
without prejudice.

Aramco is fostering a culture of diversity and inclusion (D&I)
within its organization.
Aramco has made significant efforts to increase therepresentation of women and people with disabilities,
including interns and sponsored students. These initiatives
include hiring improvements, mentoring programs, policy
enhancements, and developmental opportunities.
In 2023, the percentage of female employees increased by
12.5% and the percentage of females in leadership positions
increased by 26.3% compared to the previous year.

3,190

 Full metrics table on page 102-103

Our contribution to the UN SDGs
Aramco has various health and safety and well-being programs for our
employees. These include mental health initiatives, workplace standards
and technology to minimize exposure of our workers to unnecessary risk.
Aramco believes in lifelong learning and development. We continue toprovide world-class learning experiences that drive both personal
growth and effective operations at all levels of the Company throughinnovative platforms such as corporate e-Learning, the Hosted
University Program, Advance Development Programs and others.

Aramco is improving the gender balance of its workforce via a range offemale empowerment initiatives. In Saudi Arabia, Aramco funds the STEM
program for school-age girls, offering university scholarships for science,technology, engineering and mathematics degrees.
We have strong policies and processes to manage our ethics, bribery
and corruption risks, and ensure a suitable working environment for
our workforce.

There are 94* different nationalities
represented in Aramco’s workforce* Metric reported for the first time externally.
1. In line with the new methodology of calculating the training hours, the total number of training hours includes all training offered corporate-wide during the year for all employee
categories in addition to trainees and contractors.
2. Total hours of training and development (per employee) metric consists of total training offered by the company during the year for all participants including Aramco employees,
contractors and average levels of trainees.

52

ARAMCO | SUSTAINABILITY REPORT 2023** This figure has undergone/is undergoing external limited assurance in accordance to the ISAE 3000 (revised). Upon completion of assurance, the assurance report will be made available
online on the Sustainability section of our website.
1. Scope expanded to include additional employee types.
ARAMCO | SUSTAINABILITY REPORT 2023

53

CLIMATE CHANGE
AND THE ENERGY
TRANSITIONOVERVIEW

Workforce protection and process safety

Workforce protection
and process safety
Safety is integral and paramount to our operations
at Aramco; it is ingrained in our values to safeguard
our people, assets, and the environment.

In Aramco we operate under a “total workforce
concept”, where our ambitions are built on thefoundation of a robust safety culture and safe
environment across our employees, contractors, andsuppliers. We strive to prevent all incidents that havethe potential to harm people, damage assets, or
negatively impact the environment.

Our focus on safety is complemented by our digitaltransformation initiatives which enable innovative
safety solutions that drive safety performance,elevate emergency readiness, and enhance oursafety governance.
For over 40 years, the Executive Management
Safety Review program has been a steadfast initiative.
Each month, corporate management alongside
an executive management team, visit one of theCompany’s major operational areas to review
their HSE performance and engage directly with
employees and contractors to discuss safety matters.

SAFE OPERATIONSAND PEOPLE
DEVELOPMENT

Aramco’s safety management system (SMS) provides
a framework that integrates occupational and process
safety, and assists business units in meeting safety
expectations.
Our SMS was developed following comprehensive
benchmarking with industry peers. It is aligned withrequirements outlined in Occupational Health and
Safety Management System ISO 45001:2018, and has
been evaluated by an independent third party toensure alignment with international best practices.

GOVERNANCE

DATA

All Aramco organizations are assessed against
SMS guidelines through our internal corporate
safety assessment program. With over 50 SMS
assessments performed in 2023, this program
has been expanded to include in-Kingdom andinternational affiliates.

Sustainability in action

Aramco’s fleet of vehicles transport our workforce safely to remote areas

Safety on the road

Safety at sea

We continue to closely monitor andsupport the safety of our people on
the road. In addition to mandatory
traffic training and education, we use
digital solutions aimed at improving
traffic safety.

This supports the Company’s offshore
operations such as exploration, drilling,
production, exportation, crew transfer,oil spill response, subsea repairs,
offshore logistics, and offshore security.

11,000+
Number of Aramcoroad vehicles

ARAMCO | SUSTAINABILITY REPORT 2023

GROWINGSOCIETAL VALUE

Safety management system

Our operations are widely spread,sometimes in remote places. Aramcoused over 11,000 road vehicles covering
more than 240 million kilometers,
and over 500 buses, covering over
23 million kilometers to transport ourpeople for business in 2023.

54

MINIMIZINGENVIRONMENTAL
IMPACT

We operate over 350 maritime vessels,with over 8,000 members of ourworkforce. Aramco’s marine operations
span the Kingdom’s coastlines fromthe Arabian Gulf to the Red Sea,
providing safe, reliable, and costeffective integrated marine solutions.

In 2023, 56 offshore marine employees
participated in safety leadershipcourses, demonstrating a commitment
to fostering a strong safety culture andeffective leadership, while adhering to
the latest international regulations
and industry standards such as theInternational Maritime Organization(IMO) requirements.

350+

Number of Aramco
maritime vessels

Safety in the air

Aramco operates one of the world’s
largest corporate aviation fleets,
via its wholly-owned subsidiary
Mukamalah. The fleet of 52 owned
and leased, fixed wing and rotary
aircrafts, annually transport nearlya million passengers. Our flights
support Aramco’s operations byproviding transportation, geologicalsurveying, special missions, searchand rescue, and evacuation services.
In 2023, Mukamalah reached a newrecord of over 51,000 flight hours due
to growth and fleet size optimization.
The flight crew receive over 3,000
hours of in-house training annually.
Additionally, over 200 pilots
participate in semi-annual training
sessions with certified providers tomeet safety requirements according
to industry best practices.

50+

Number of Aramco
helicopters and airplanes

ARAMCO | SUSTAINABILITY REPORT 2023

55

OVERVIEW

CLIMATE CHANGE
AND THE ENERGY
TRANSITIONSAFE OPERATIONSAND PEOPLE
DEVELOPMENTMINIMIZINGENVIRONMENTAL
IMPACTGROWINGSOCIETAL VALUE

GOVERNANCE

DATA

Workforce protection and process safety continued

Our safety performance

Fatal accident rate*2023
0.305**

2022

2021

3

Metric notdisclosed
previously
5**

Metric notdisclosed
previously
1**

Number of fatalities
Total recordable case rate

0.042

0.050

0.054

Lost time injuries/illnesses(LTI) rate

0.018**

0.014**

0.017

15

11

11

**

Number of Tier 1
process safety events* Metric disclosed for the first time.
** This figure has undergone/ is undergoing external limited assurance in accordance to the ISAE 3000
(revised). Upon completion of assurance, the assurance report will be made available online on the
Sustainability section of our website.

Any loss of life is never acceptable and we aspireto achieve zero fatalities. Regrettably, Aramco
had three** contractor fatalities during the year:
one contractor fell from height while installing
scaffolding; a second contractor was struck by amooring rope while disconnecting a marine vessel
from a single point mooring system; and a thirdcontractor was struck by hoisting hardware on
an offshore rig.
During this year, we introduced a new metric, whichmeasures our fatal accident rate, representing theratio between the number of recordable workforce
fatalities per 100,000,000 and the total work hours.
In 2023, our fatal accident rate was 0.305**.
Aramco has thoroughly evaluated these incidents
to identify root causes and has initiated corrective
actions, including employee awareness and increased
supervision, to avoid such accidents in the future.
Lessons from these incidents have been sharedwith all relevant departments and stakeholders,
and remedial actions continue to be implemented.
We continue to partner with our contractors to build
a strong safety culture across our value chain andprevent such incidents from recurring.
With regards to our TRC rate performance, ourimprovement has continued over the past three years,
with incidents per 200,000 hours worked having
decreased (the TRC rate has decreased by 22.2% since2021). This is testament to our investment in training
initiatives and implementing a comprehensive lessons
learned program to mitigate incidents occurring ofa similar nature.
Aramco recorded 15 Tier 1 process safety events during
the year. Out of these 15 events, 11 occurred at inKingdom wholly-owned operated assets and four at
Aramco operationally controlled affiliates. None of
the Tier 1 events were major, eight were moderate,
and the remaining were classified as minor. Five outof the 15 incidents resulted in lost time injuries.
56

ARAMCO | SUSTAINABILITY REPORT 2023

We also introduced two additional health complianceprograms: Radiation Protection Assessment andHazardous Materials Communication Assessment
into our health key performance indicators.
Sustainability in action

Cultivating a strong safety culture
across our global operations
Aramco continues to reasonably support our
subsidiaries in maintaining and improving astrong safety culture across our operations.

The established Global Safety policy governs
our approach, supporting long-term success andresilience within the Aramco Group, promoting
the welfare of our workers, the community, andthe environment. Supporting the Global Safety
Policy, the Company has developed andimplemented an Affiliate Safety Oversightstrategy to improve performance across the
Aramco Group by focusing on governance,
performance monitoring, assessment,
engagement, and capability building.
In 2023, we hosted the second Global HSE forum,
which attracted over 700 attendees from oursubsidiaries around the world. This forum isamong a number of initiatives that support
our affiliates.
We continued our journey of conducting
assessments of our affiliates across the globe,
supporting the reinforcement of theirsafety management systems through therecommendations we provided.
We are building the capabilities of the affiliates
by providing them with the necessary resources,
training, and guidance to improve andcontinually enhance their safety performance.

Contractor safety
Aramco aims to ensure the safety and welfare ofits contractors. Our approach centers on strong
field presence, performance assessment, andimplementing effective governance measures.
We use bespoke tools to monitor contractor safety
performance and compliance to corporate safety
requirements. The Construction Safety Index (CSI)
monitors contractor safety compliance withconstruction requirements and assesses the safety
environment of our contractors. In 2023, 4,077 CSI
inspections (2022: 3,300 CSI inspections) wereconducted on 87 prime contractors.
Aramco utilizes the Turnaround Safety Index (TSI)
that is focused on contractors’ safety performance
during turnaround and inspections. In 2023, 1,090
TSI inspections were completed (2022: 670).
Inspired by the continued success of CSI and TSI, theRig Safety Index (RSI) was launched in Q4 2022 tomonitor onshore and offshore drilling rig contractor
safety performance. During 2023, 92 RSI inspections
were completed, covering 17 prime drilling contractors.
We hosted the Project Management Contractor Safety
Excellence Award that recognizes outstanding
contractor performance in multiple categories,
including wellness, technology deployment, andsafety compliance.
Aramco launched the ‘Line of Fire’ campaign toaddress risks associated with danger zones atconstruction sites. The campaign targeted thecontractor site workforce, elevating their safety
awareness and capabilities to identify work site
hazards and enhance their safe behavior.
Emergency preparedness
Aramco takes proactive measures to prevent
emergency situations and maintain a robust
emergency preparedness program. Aramco’s
Corporate Emergency Management Taskforce ensuresresilience and readiness pre-planning, as well as risk
based, and site-specific emergency response plans.
A quarterly forum for emergency preparedness
coordinators from all Company stakeholders isheld to continually improve emergency readiness.
A major program improvement this year included
an enhancement to the Company’s digital safetysystem – SafeLife – that enables a corporate-wide
tracking of emergency exercise schedules, as well as
drill critique items until closure in a unified system.

Expanding safety training programs
Aramco worked closely with five National Training
Centers (NTCs) to evaluate and enhance existing
Safety Diploma Programs and to establish new ones.
The NTCs were selected as they harbor the necessary
infrastructure to deliver safety diploma programs
efficiently, targeting high school graduates, to equipthem with the required skills to be competent fieldsafety officers.
Since inception of the new Safety Diploma Programs,
the National Industrial Training Institute (NITI)
graduated 135 participants, 97 males and 38 females,
to be Field Safety Officers.
Additionally, in February 2023, Maharat Construction
Training Center’s Construction Safety Associate Diploma
Program was inaugurated. The total number enrolled
in the program during 2023 was 189 participants fromdifferent sponsoring companies.

ARAMCO | SUSTAINABILITY REPORT 2023

57

OVERVIEW

CLIMATE CHANGE
AND THE ENERGY
TRANSITIONSAFE OPERATIONSAND PEOPLE
DEVELOPMENTMINIMIZINGENVIRONMENTAL
IMPACTGROWINGSOCIETAL VALUE

GOVERNANCE

DATA

Human rights
The positive impact of our engagement efforts isdemonstrated by our low attrition rates and aconsistently high engagement score of 85% in 2022
and 2020. The survey is done on a bi-annual basis,the next survey will take place in 2024.

Human rights
Our people

73,31194*
employees

nationalities

For over 90 years, we have embraced diversity in our
workforce. Today, the Aramco workforce is comprisedof over 73,000 employees from more than 90 different
countries. In Saudi Arabia, we are aiming to further
promote female employment, multiculturalism andinclusion of people with disabilities (PwD). Our
workforce is expanding by increasing female
representation, adding employees fromdiverse backgrounds, and providing aworkplace that caters to various needs.
At Aramco, our people are offered a safe
environment and opportunities to develop
personally and professionally. We cherish
the benefits that diversity creates in ourcommunity and business, and celebrate ourhistory and legacy of people development.

Human rights inthe workplace

Ensuring dignity and respect for all is paramount.
We are dedicated to upholding human rights in theworkplace, recognizing our role as a responsible
corporate citizen. Our ambitions involve fostering
a positive culture aligned with these values, with astrong stance against abusive or inhumane practices,modern slavery, exploitation, and child labor.

Number of grievances
2023

230
293

2022
2021

236

Sites with a grievance mechanism in place
(%)
2023

100

2022

100

2021

100

* Metric reported for the first time externally.
58

ARAMCO | SUSTAINABILITY REPORT 2023

In October 2022, the corporate-wide bi-annual
Employee Engagement Census Survey was launchedacross Aramco to over 75,000 employees andcontractors. In response to the results of the survey(disclosed in our 2022 report), we undertook thefollowing actions:
We engage stakeholders to proactively prevent
incidents that could compromise human rights.
Striving to make enduring positive contributions,
we focus on governance, transparency, rule of law,and social and economic development.
Our adherence to these values extends to compliancewith local laws and respect for international humanrights principles.

Employees acknowledging performance review meetings1
(%)
2023

92.0

2022

90.6

2021

96.8

‘How Starts with You’ Campaign: Aramco launched a
corporate campaign to highlight efforts being madein response to survey results. These results focused onfour key areas: Recognize, Care, Enable, and Develop.
To ensure widespread reach and compliance, over
28,000 toolkits were sent to all leaders and advocatesin the Company.
Employee Experience Awards: As part of the 2023
President & CEO Excellence Awards, the top three
performing departments in Employee Engagement
were awarded Gold, Silver and Bronze awards by
Aramco’s President and CEO and the Senior Vice
President of Human Resources.
Enhanced Well-Being Model: In response toemployee needs, Aramco updated the Corporate
Well-Being Program Model to focus on ninedimensions of well-being: physical, social,occupational, intellectual, financial, digital,
environmental, emotional, and spiritual.

Code of Business Conduct
Aramco strives to ensure employees feel respected
and safe. We rely on people in every part of ourbusiness to speak up on issues and act with integrity.
To maintain an ethical working environment, ourpeople are encouraged to report any suspected
non-compliance with the law, Aramco policies, or our
Code of Business Conduct. Aramco provides several
avenues for employees to ask questions and raise
concerns, including escalation to management,
calling an anonymous hotline and/or contacting
Human Resources, Internal Audit or the Compliancedepartments.
Grievances
The Company has a formal grievance process thatis overseen by our Human Resources department.
This ensures all items raised are reviewed objectively
and fairly resolved. At Aramco, we believe that every
employee has the right to speak up without any
fear of disciplinary action or any adverse impact
on their career.
Employee engagement
To enhance the workplace experience for our people
at Aramco, we interact with them through multiple
communication avenues. These include town hallmeetings, engagement surveys, recognition events,
the intranet, periodic performance reviews, and theYoung Leaders Advisory Board (a program consistingof employees 35 years of age and below) which
serves as a bridge between the youth of Aramco andexecutive management.

1. In accordance with our ongoing review of our sustainability performance data, we have determined that the metric “Employees receiving regular performance reviews (%)” reported in
2022 and 2021 should be renamed “Employees acknowledging performance review meetings (%)” in order to more accurately reflect what this metric entails.
ARAMCO | SUSTAINABILITY REPORT 2023

59

CLIMATE CHANGE
AND THE ENERGY
TRANSITIONOVERVIEWLabor practices

SAFE OPERATIONSAND PEOPLE
DEVELOPMENTMINIMIZINGENVIRONMENTAL
IMPACTGROWINGSOCIETAL VALUE

GOVERNANCE

DATA

Investing in our workforce

Labor practices

Aramco has also boosted its cooperation with local
universities through a strong and growing internshipprogram. By supporting the growth and developmentof young Saudis, Aramco is contributing not only to its
strategic goals, but also to the Kingdom’s vision.

To ensure we attract talent from both within Saudi
Arabia and globally, we held recruitment workshops
across Africa, Asia, Europe, and North America. To
prepare for the future of our workforce, Aramco has
hired a steady stream of exceptional Saudi candidates
into its professional development programs.

Diversity and inclusion

Aramco is fostering a culture of diversity and inclusion
within our organization. We embrace our employees’
differences and foster an inclusive workplace culture
where every employee feels valued, respected, andheard. We strive to ensure all employees are provided
equitable access to resources and opportunities.
A key objective in our people strategy is to increase
the number of women and people with disabilities in
the Company and create a workplace where they, andall employees, can thrive.

2023

2022

2021

Number of female employees

5,294

4,503

3,802

Female (%) of total employees

7.2

6.4

5.6**

Female (%) of total number of new hires

24.1

28.4

31.2

Number of female employees
in leadership positions

233

176

136

Female employees in leadership positions (%)

4.8

3.8

3.1

Aramco continued to accelerate the development offemale employees in 2023 through different options,
including advanced-degree programs, undergraduate
scholarships, and targeted offerings, while improving
female representation in science, technology,
engineering and mathematics (STEM) fields. The
Company has also achieved major milestones inincreasing the representation of women acrossthe Company.
Today, our female employees include traders, pilots,
fire safety inspectors, inventors, and scientists. We
also continued to increase the number of female
leaders through allocating additional seats in talentassessments and targeted leadership programs in Ivy
League schools like Harvard and Wharton and global
universities like LSE and INSEAD.

Sustainability in action

Our National Training Centers bring Aramco’s
vocational training legacy to local communities

To date, over 57,900 students have graduated from the NTCs
in more than 80 different disciplines, with over 11% women.
Given this record, the centers remain on track to meet theirtarget of 100,000 graduates by 2030.

To support the growth of the Kingdom’s economy, as well as
to provide a robust pipeline of qualified local labor, Aramco
began the National Training Centers (NTCs) initiative in 2008.
The NTCs are the product of a strategic partnership between
Aramco, select government entities, and the private sector
to train young Saudis in critical and emerging industries.

Aramco prioritizes maintaining a diverse workforce bystrengthening its Employee Value Proposition throughenhancing benefits, policies, and infrastructure topromote an inclusive work environment. For example,
the Company now offers a reduced work schedule
for people with disabilities to promote greater
work-life balance.

KhafjiNairyahJubailJu’aymahDammamAbqaiqAl-Hasa
RiyadhJeddah

57,943
graduated to date** This figure has undergone external limited assurance in accordance with the ISAE 3000 (revised). The assurance report can be found online on the Sustainability section of our website.
60

ARAMCO | SUSTAINABILITY REPORT 2023

80

11

>

+

training disciplines

female representation%

ARAMCO | SUSTAINABILITY REPORT 2023

61

OVERVIEW

CLIMATE CHANGE
AND THE ENERGY
TRANSITIONSAFE OPERATIONSAND PEOPLE
DEVELOPMENTMINIMIZINGENVIRONMENTAL
IMPACTGROWINGSOCIETAL VALUE

GOVERNANCE

DATALabor practices continued
Spotlight on training and development

Advancing career development
opportunities for our people
At Aramco, we continue to excel at providing
unique learning offerings to our workforce.
Our Hosted University Program expands
advanced degree opportunities for our
employees seeking master’s degrees from
top-tier universities while remaining on
the job. The program brings the knowledge
and expertise of leading global universities
and institutions to the Kingdom todeliver customized, business centeredacademic degrees.

The program is predominantly face-to-facesessions conducted in-Kingdom with a 7-week
out of Kingdom duration at the university’s
main campus location. This leads to a morecapable and adaptive workforce to assist inachieving the strategic goals of the Company.

By 2023, the Company has completed morethan 35 hosted programs, successfully
graduating more than 900 employees.
Notably, the Company signed agreementswith top-tier business schools like Harvard,
London Business School, and Wharton to
focus on employee development and diversify
opportunities, ensuring alignment between
employees’ aspirations and the Company’s
overall corporate strategy with over 2,000
participants to date. We have also introduced
Harvard Manage Mentor Cafes to provide
interactive sessions on soft skills, analyticalcompetence, and leadership development;over 1,800 employees have benefited fromthis program.

Sustainability in action

First cohort of female pilots

Aramco has graduated its first cohort of female
pilots in 2023, marking a significant milestone in
the Company’s aviation program. The program,which has been in development for over a decadeand includes two years of university study, aims
to ensure these pilots serve as role models andencourage more women to join the program.
The graduates’ backgrounds in engineering(civil and electrical) and computing has madethem well-equipped to become the company’s
pioneering female pilots.
With one of the largest corporate fleets in theworld, Aramco’s aviation department offers
these women, and those who will follow in theirfootsteps, an opportunity to follow their passion
and achieve equal opportunity to venture intoa field with low female participation. In this way,
it offers not only a dynamic and well-paid career,
but also a chance for them to realize their dreams.

Number of hired graduates
1,665

2023
2022

1,459

2021

1,447

Number of interns
2023

3,201

2022

3,190

2021

1,922

Number of apprentices (new intake)
2,200

2023

1,728

2022
2021

2,500+

1,369

Workforce well-being
A healthy working environment is critical for
employee health, positive engagement, andoperational safety. To support our employees,
dependents, and their families, medical services(including mental health) are provided acrossall Aramco sites and made easily accessible toour people.

In addition, Aramco supports the well-being of its
contractor workforce through a dedicated Corporate
Contractor Well-Being Program. Various free services
are availed to contractors in multiple languages
including a 24/7 hotline, video counseling, online
resources and awareness materials. Also, well-being
and stress management engagement sessions havebeen conducted across the Kingdom. Furthermore,a Contractor Passport Solution that monitors
key well-being parameters has been deployedCompany-wide.

Aramco launched its “Supporting Well-Being
for Leaders” course in 2022 to support themental well-being of employees. Since its
inception, it has been delivered to over 2,500
leaders in Aramco.
62

ARAMCO | SUSTAINABILITY REPORT 2023

ARAMCO | SUSTAINABILITY REPORT 2023

63

The Arabian Sunbird is regionally native
to Arabian Peninsula and present on Aramco
BPAs in the western side of the Kingdom.
The Arabian Sunbird geographical range
spans from west of Arabia to Yemen further
south. Sunbirds are not just beautiful – they
are an important pollinator of native plants.
 Photographer
Philip Roberts

Minimizing
environmental
impactBiodiversity and ecosystem services......................... 68
Local environmental impact..................................... 72
Water management.................................................. 74
Product stewardship and waste management........ 76

64| SUSTAINABILITY| SUSTAINABILITYSAUDI ARAMCO
ARAMCOREPORTREPORT2023 2023

ARAMCO | SUSTAINABILITY REPORT 2023

65

OVERVIEW

CLIMATE CHANGE
AND THE ENERGY
TRANSITIONSAFE OPERATIONSAND PEOPLE
DEVELOPMENTMINIMIZINGENVIRONMENTAL
IMPACTGROWINGSOCIETAL VALUE

GOVERNANCE

DATA

Minimizing environmental impact
Performance of our key metrics

Aramco has operated for more than 90 years in Saudi Arabia’s desert sands,
and the overwhelming need to protect groundwater has fostered a cultureof preservation in all the sectors in which we do business. From air, to water,
to waste – we are applying circular economy principles to reduce impact,
restore ecosystems and increase biodiversity.

Material issue

Relevant metrics

2023

2022

StatusBiodiversity
and ecosystemservices

Net positive impact (%)

85.6**,153.0**In 2023, we exceeded our 2025 target, two years in advance,
to increase the NPI by 30% against our base year. In 2023,
we achieved a 85.6%** NPI because of the inclusion of
additional BPAs in Saudi Arabia and significant expansionof over 700 km2 of our existing BPA in Shaybah. As a result,
the total area covered by BPAs is over 1,700 km2.

Number of hydrocarbon spills

1215

Volume of hydrocarbon spills(barrels)

8,566**

142,885**

Recovered hydrocarbon (%)

88**

9**

Hydrocarbon discharge towater (barrels)

14.3**

16.4**In 2023, the number and volume of hydrocarbon spills
decreased significantly (20.0% fall in number of hydrocarbon
spills, and 94.0% decline in volume of hydrocarbon spills)
compared to 2022. All of the spills were quickly halted andthorough cleanup efforts were carried out to mitigate further
environmental impacts. One onshore oil spill in the Riyadh
area with a volume of 8,335 barrels that was the result ofa damaged pipeline accounted for over 97% of the total
volume of hydrocarbons spilled.

SOx emissions (metric kilotons)

146**

167**

A series of measures, such as continuous improvement insulfur recovery, operational efficiency, readily available
Sulfur Recovery Units, and lower production, resulted inan overall decrease in sulfur oxides emissions from 2022.

Number of sites with ISO 14001
certification (%)

100**

98**

In 2023, we achieved 100%** ISO 14001 certification at
facilities under our operational control, i.e., the 52 upstream
and downstream asset-based organizations enrolled in ourEnvironmental Management System.

Freshwater consumption(million m3)

89.9**

93.6**In 2023, freshwater consumption was 89.9** million m3, down
4.0% compared to 2022, due to effective water conservation
efforts in Aramco’s upstream and petrochemical operations.

Freshwater withdrawal(million m3)

135.7

136.6

Freshwater intensity* (m3 /boe)(total freshwater consumed relative
to our hydrocarbon production)

0.02

Metric notdisclosed
previously

Industrial waste disposed(metric tons)

481,561

318,656

Industrial waste recycled (%)

35.7**J Read moreon page 68

Local
environmental
impactThis year we met and exceeded our 2025 target, two years in advance,
to increase the biodiversity net positive impact by (NPI) 30% against ourbase year (2022). In 2023, we achieved an 85.6%**,1 NPI because of the
inclusion of additional Biodiversity Protection Areas (BPAs) in Saudi Arabia
and significant expansion (over 700 km2) of our existing BPA in Shaybah.

J Read moreon page 72

Water
management
J Read moreon page 74

2023 performance
146**
167**

2022
2021

141

Freshwater consumption(million m3)
2023

85.6

**,1

SOx emissions(metric kilotons)
2023

Product
stewardshipand wastemanagement

89.9**

2022

93.6**

2021

94.6

0.02

%

Net positive impact

100

m3/boe*Freshwater intensity%**

Number of sites with ISO 14001 certification* Metric reported for the first time externally** This figure has undergone external limited assurance in accordance to the ISAE 3000 (revised). The assurance report can be found online on the Sustainability section of our website.
1. Ongoing management and review of the BPAs resulted in exclusion of the Manifa BPA from our NPI metric as a BPA, pending implementation of enhancements to align with theCompany’s biodiversity governance.

66

ARAMCO | SUSTAINABILITY REPORT 2023

J Read moreon page 76

39.9**In 2023, Aramco generated 481,561 metric tons of industrial
waste, which was disposed of in compliance with regulations
and standards. While our efforts to minimize waste have
improved, the observed increase in industrial waste from 2022
was attributed to the Company’s expanded operations and ourefforts in improving industrial waste reporting system.

J Full metrics table on page 104

Our contribution to the UN SDGs
Given water scarcity in Saudi Arabia, Aramco has a large seawater
treatment and injection network of facilities. Seawater is used as
the primary source of water for oil production and to ensure cleanwater is available for our workforce and local communities.
Embracing circular economy principles and business models across
our operations and activities. To date, we have trained and certified
over 2,800 employees from different segments of our business incircular economy. This is supported by a circular economy guidebook
and circularity maturity assessment to guide organizations across theCompany in their circularity journey. Over 200 circular economy
initiatives have been implemented, adopting circular business models
aiming to optimize resources utilization and minimize environmental
impact. For more information, please refer to Aramco’s circular
economy section on our website.

Aramco has systems in place to manage all discharged water to thesea, meeting Government requirements by investing in maintenanceand monitoring systems while proactively managing operations to
avoid hydrocarbon leaks and spills by maintaining asset integrity
throughout the life cycle.
Aramco aims to deliver biodiversity net gain in support of Vision
2030, SDG15 and the Saudi Green Initiative.
Partnering with organizations, such as Ipieca and WEF, to help promote
good industry practice and better environmental performance. We arealso working closely with our suppliers and creating incentives to reward
them for improvements in their environmental performance.

* Metric reported for the first time externally** This figure has undergone external limited assurance in accordance to the ISAE 3000 (revised). The assurance report can be found online on the Sustainability section of our website.
1. Ongoing management and review of the BPAs resulted in exclusion of the Manifa BPA from our NPI metric as a BPA, pending implementation of enhancements to align with theCompany’s biodiversity governance.
ARAMCO | SUSTAINABILITY REPORT 2023

67

Biodiversity andecosystem services

OVERVIEW

CLIMATE CHANGE
AND THE ENERGY
TRANSITIONSAFE OPERATIONSAND PEOPLE
DEVELOPMENTMINIMIZINGENVIRONMENTAL
IMPACTGROWINGSOCIETAL VALUE

GOVERNANCE

DATA

Minimizing environmental impact continued

Biodiversity

Net positive
impactby 2030

The planet continues to experience a decline inbiodiversity due to human activity, and this isincreasingly recognized as a significant risk tohumanity. The UN Biodiversity Conference (COP 15,2022) concluded with 196 countries, including Saudi
Arabia, signing up to the Kunming-Montreal Global
Biodiversity Framework (GBF). The GBF aims toaddress biodiversity loss, restore
ecosystems, and protect indigenous
rights, providing a refreshed roadmap
for delivering the Global Goal for Nature
to halt and reverse nature loss by 2030
and to become nature positive.
This principle sits at the heart of Aramco’s biodiversity
policy and our use of the mitigation hierarchy.
These provide the responsibilities and framework
to safeguard biodiversity wherever the Company
operates and to restore degraded areas, and in sodoing, maintain and increase biodiversity andecosystem services.

Net positive impact

In alignment with the GBF, Aramco strives to achievea net positive impact on biodiversity and ecosystemservices by 2030. NPI occurs when biodiversity gains
through our conservation projects outweigh negative
impacts on biodiversity as a result of operations. We
measure our NPI by comparing the surface area of
our Biodiversity Protection Areas (BPAs) against thatof our operational footprint.

An interim target was set in 2022, to achieve a 30%
improvement in our NPI by 2025. However, in 2023,
we achieved a 61.5% improvement in the year, taking
our overall score to 85.6%**,1. This improvement in our
performance was achieved due to changes in our
BPAs in Saudi Arabia. The inclusion of three new BPAs
and significant expansion (over 700 km2) of theexisting BPA in Shaybah led to a large increase in the
total land in our protected areas. The Shaybah
Wildlife Sanctuary expansion was undertaken to
match an increase in the number of native animals
that are planned to be located in the sanctuary.

Aramco’s activities overlap and potentially impact
areas of high biodiversity value. To compensate for
this, the Company has developed initiatives intended
to ensure impactful contributions to biodiversity
conservation, which are aimed at identifying
opportunities and addressing associated risks.

Our biodiversity mitigation hierarchy

Our biodiversity mitigation hierarchy

Governance framework

Governance framework for biodiversity

Avoid

We avoid
Avoid
avoid operatinginhighWequality
habitathigh-quality habitat

We will not operate indesignatedworld
Our policy
is not toheritage
operate in
UNESCO
World
sites, designatedstrict nature
reserves,
Heritage sites, strict natureor wilderness
areas, andreserves or wilderness
areas will(asclassified by IUCN), and aims toensureour operations result
ensure our operations result in noloss
of biodiversity
andin nonetnetloss
of biodiversity
ecosystem services in nationaland ecosystems
servicesAreas.
inparks and Key Biodiversity
national parks, key Photographer
biodiversity
areas andPhilip Roberts
vulnerable bird habitats.

Minimize

RestoreOffsetDuring 2022, we designatedan additionaltwo
During 2023, we
designatedadditional Biodiversity
Protection
Biodiversity
Protection
Areas; we now have 14 BPAs
Areas;
we almostnow havecovering
1,700 km2.
Together, these sites protect
12 Biodiversity
Protection
more than 730 species of plants
andcovering
animals.
Areas
985 km2.
Together, these sites protect
more than 500 species ofplants and animals,
including at least 55 species
or subspecies that are
unique to Saudi Arabia.

We reintroduced locallyextinct
species
at theIn 2023,
Aramco supported
restoration
projects, and planted
ShaybahWildlife
more than 350,000 native trees
Sanctuary,
andrestoredin three Saudi
Reserves.
degraded wetlands at
Abqaiq.

Whenever we have tooffsetourwe
impacts,
weWheneverhave to offset
our impacts,
willoffsets
ensureseek
to get we
ouroffsets, such as reforestation andassesseda credible
restorationbyof affectedbodies ofwater, are assessed and validated
third
party.
by a credible third party.

WeMinimize
minimize ourWeminimize our impacts
impacts

WeRestore
restoreWe
restore degradedhabitatdegraded
habitat

What
Offsetwe cannot avoid,
What we cannot
minimize,minimize,oravoid,
restore,or restore, we offset
we offset

We map and monitor to understand the biodiversity around us
Aramco’s Natural Wetland Strategy aims to restore natural wetlands (more details in case study on next page) to promote biodiversity recovery and ecosystemservice provision. An exhaustive remote-sensing, mapping, and prioritization exercise has identified natural wetlands on Company land.

We map and monitor to understand the biodiversity around us

In 2022, we mapped and monitored the area around us in the Berri Gas Plant identifying various species(see the following
page for more details).
We conduct applied research
Aramco conducts applied research aimed at ensuring its activities do not cause undue impacts on biodiversity, including collaborative research
partnerships with King Fahd University of Petroleum and Minerals and King Abdullah University of Science and Technology. For instance, in 2023,
we tagged and released nine sea turtles (one juvenile and eight adults) for satellite tracking as part of ongoing studies.

We conduct applied research** This figure has undergone external limited assurance in accordance to the ISAE 3000 (revised). The assurance report can be found online on the Sustainability section of our website.
1. Ongoing management and review of the BPAs resulted in exclusion of the Manifa BPA from our NPI metric as a BPA, pending implementation of enhancements to align with theCompany’s biodiversity governance.
68

The Company conducts applied research aimed at ensuring its activities do not cause undue impacts on
invest inpartnerships
biodiversity education
andFahd
awarenessbiodiversity, including collaborativeWe
researchwith King
University of Petroleum and Minerals
Aramco hosts a Sea Turtle Rescue Center near our Ras Tanura terminal that saves, treats, and releases sea turtles, and educates the local community.
and King Abdullah University of Science and Technology.

ARAMCO | SUSTAINABILITY REPORT 2023

ARAMCO | SUSTAINABILITY REPORT 2023

We invest in biodiversity education and awareness

69

OVERVIEW

Biodiversity and ecosystem services continued

Delivering net positive impact
Central to achieving NPI is the Biodiversity
Protection Area program. In 2023, we designated
new terrestrial areas in Riyadh and Qassim, andHarqus Island in the Arabian Gulf as BPAs, bringing
the total number of BPAs to 14 covering over
1,700 km2. These new sites were assessed basedon the International Union for Conservation of
Nature (IUCN) criteria.1 Additionally, the Shaybah
Wildlife Sanctuary was expanded in 2023.

IUCN Red List
Endangered2
9Vulnerable

13

Near Threatened

As new sites are added, new species are being
recorded. Aramco’s BPAs provide a secure habitat
for around 40% of all bird species in the Kingdom,
including numerous migratory ones. Overall, our
BPAs have recorded over 730 plant and animal
species, including several globally Threatened andNear Threatened species under the IUCN Red List.

In 2023, we planted approximately 6.5 million
mangroves and 1.1 million native trees in theKingdom. This brought the total number of planted
native trees to 4.1 million. To date, our cumulative
total of planted mangroves is over 30 million,
while the carbon stock of the planted and existing
mangroves was validated to be equal to almost
445,000 tons of CO2e.

List of BPAs:
1. Shaybah Wildlife Sanctuary

8. Bahra Biodiversity Protection Area

2. Rahimah Bay Mangrove Eco-Park

9. Madina Biodiversity Protection Area

3. Abu Ali Island

10. Khurais Biodiversity Protection Area

4. Tanajib Biodiversity Protection Area

11. Baga Bird Oasis

5. Abqaiq Wetlands

12. Riyadh Biodiversity Protection Area

6. Udhailiyah Biodiversity Protection Area 13. Qassim Biodiversity Protection Area

Secure habitats provided by Aramco’s BPAs for the following:

MINIMIZINGENVIRONMENTAL
IMPACTTo nurture, protect, and restore our environment,
Aramco invests in nature-based solutions. Beyond
the potential climate benefits of these solutions
acting as carbon sinks, nature-based solutions, likemangroves, provide a home to many diverse wildlife
species, a nursery for infant marine life, and a vitalnatural line of defense against natural disasters
including shoreline erosion, and storms.

Our BPA network is supported by assessmentof the contribution to conservation objectives
and delivery of the Company’s biodiversity aims
to achieve NPI on biodiversity and ecosystem services.

7. Abha Biodiversity Protection Area

SAFE OPERATIONSAND PEOPLE
DEVELOPMENT

Nature-based solutions

Spotlight on Biodiversity at Aramco

At Aramco, we aim to achieve a net positive
impact on biodiversity by 2030. In 2023, weachieved a 85.6%**,2 NPI, which is a 61.5% increase
compared to the prior year, and exceeded, twoyears in advance, our 2025 NPI target.

CLIMATE CHANGE
AND THE ENERGY
TRANSITION

14. Harqus Island Photographer
Jeremy Babbington

46

Coral reefs
Coral reefs are one of the most diverse ecosystems
in the world and we have been proactively promoting
the growth of marine life with artificial reefs. Alongwith our offshore oil and gas facilities acting as artificial
reefs by providing substrate for marine communities;
Aramco continues to work with the Okinawa Coral
Reef Conservation Consortium in Japan. This initiative
ensures the future of endangered coral reefs around
Okinawa.

GROWINGSOCIETAL VALUE

GOVERNANCE

DATA

SeaweedThe Yanbu seaweed pilot project to harness thepotential of seaweed cultivation was completed
in 2023. We have cultivated different genes ofseaweed such as Sargassum and Kappaphycus,
which are native to the Red Sea in the Western
Region. Furthermore, an algae market survey
has been completed, to further support potential
future seaweed projects. These surveys provide
comprehensive data that enable the assessmentof investment viability and market potential forevaluating investment opportunities in thealgae industry.
Wetlands initiatives
Aramco is cognizant of the ecological significanceof wetlands (including their role in carbon sequestration),with many located on its land. Aramco’s wetlands
strategy focuses on the restoration and protectionof natural wetlands on our land, and the creationof constructed wetlands, a cost-effective, energy
efficient, and more environmentally benign alternative
to traditional wastewater treatment methods.
The top priority natural wetlands will be explored fordesignation as BPAs, adding to the almost 1,700 km2
already protected by Aramco across Saudi Arabia.

Building on 11 years of research, we have conductedstudies on how to restore the coral reefs, andhave run educational programs reaching out toschool children to nurture understanding, as well
as appreciation for the natural environment. We are
currently scaling up our efforts to focus more directly
on coral revitalization by cultivation and planting.

Mammals

79

Invertebrates
 Photographer
Jeremy Babbington

730

30

Reptiles Photographer
Jeremy Babbington

Totalspecies
species
Total

386
Plants Photographer
Irene Linning

189
Birds

** This figure has undergone external limited assurance in accordance to the ISAE 3000 (revised). The assurance report can be found online
on the Sustainability section of our website.
1. Dudley N. 2008. Guidelines for Applying Protected Area Management Categories. International Union for Conservation of Nature.
2. Ongoing management and review of the BPAs resulted in exclusion of the Manifa BPA from our NPI metric as a BPA, pending implementationof enhancements to align with the Company’s biodiversity governance.

70

ARAMCO | SUSTAINABILITY REPORT 2023

Supporting the aquaculture
sector under Saudi Vision 2030
Sustainability in action

 Photographer
Jeremy Babbington

The construction of Abu Ali Fish Hatchery project
was completed in 2023. The hatchery aims to
support the biodiversity of the marine ecosystemand safeguard the value of commercial fish stocks
for the local fishing community. The project ispart of the Company’s biodiversity offsetting
ambitions and is important to the realization of
the Kingdom’s aquaculture sector under Vision
2030. This facility also includes planting of
200,000 mangroves to create an importantnursery habitat for juvenile fish released to the
Arabian Gulf.

ARAMCO | SUSTAINABILITY REPORT 2023

71

OVERVIEW

CLIMATE CHANGE
AND THE ENERGY
TRANSITIONMINIMIZINGENVIRONMENTAL
IMPACT

SAFE OPERATIONSAND PEOPLE
DEVELOPMENTGROWINGSOCIETAL VALUE

GOVERNANCE

DATA

Local environmental impact

Local environmental impact
Air emissions

43

Since 2012, our operations have been supported by
Aramco’s Environmental Management System (EMS),
which provides a systematic and planned approachto achieve compliance with local environmental
regulations and support for adoption of international
good practices. In 2023, we achieved 100%** ISO
14001 certification at facilities under our operational
control that is the 52 upstream and downstream
asset-based organizations enrolled in our EMS, ofwhich 50 organizations are in Saudi Arabia, and twoorganizations are located outside of the Kingdom.
We conducted more than 43 environmentand health site assessments during 2023 to
manage and mitigate any negativeenvironmental and health risks of ouroperations around the world.

environment and healthsite assessments conductedduring 2023

SOx emissions(metric kilotons)
146

**

2023

167**

2022

141

2021

Award
Abqaiq Plants achieves 1st place in the 2023
King Khalid Foundation Sustainability Award
Abqaiq Plants achieved Gold status in the 2023
King Khalid Foundation Sustainability Award for
its commitment to sustainability in governance,social responsibility, economic practices, andenvironmental stewardship. Abqaiq Plants also
adopted advanced technology, including
Unmanned Aerial Vehicle (UAV) drone programsfor improved environmental monitoring.

SOx, nitrogen oxides (NOx), and volatile organic
compounds (VOCs)
Aramco monitors its air emissions and, where
necessary, establishes measures to reduce theirimpact on our workforce, local communities,
and the environment.
In 2023, we continued our program of upgrading
Sulfur Recovery Units (SRUs) with tail gas treatment
units. Tail gas treatment is gaining importance as thepreferred technology to reduce sulfur oxides emissions,
support our efforts in fulfilling our complianceobligations and as we explore economic opportunities
for sulfur. This program will continue in 2024.
The combination of continued improvements in sulfur
recovery, operational efficiency alongside readily
available SRUs, and lower production, resulted in an
overall decrease in sulfur oxides emissions from 2022.
Emissions of NOx from our operations are mainly
attributed to the combustion of hydrocarbon fuels
for generation of electric power and heating
required in our facilities. Reductions of NOx emissions
are achieved via energy optimization measures,
alternative fuels or, most significantly, whenhydrocarbon-fueled power generation is replacedwith renewable electric power. NOx emissions fromour facilities are governed by the emission limits
mandated by our corporate environmental standards
and the national environmental regulatory standards.
To ensure we continue to meet Saudi Arabia’s
regulations, many of our facilities have been
upgraded with low and ultra-low NOx burners to
reduce NOx emissions.
We continue to invest in VOCs control systems
and equipping our bulk loading facilities with
Vapor Recovery System to minimize associated
VOCs emissions.

Spills to the environment

To meet our aspirational target of zero spills, Aramco
employs rigorous inspection programs to assess theintegrity of assets, putting fail-safe measures in place,training employees to ensure they are familiar withgood practices and procedures.

• Technologies that monitor and enable rapid
response to oil spills;

Some of our key oil spill detection procedures include:

In the event of any spills, we have response plans thatenable rapid mitigation. Our management processes
focus on mitigating the impacts of hazardous
chemicals and air, water, and soil contamination.

• Utilization of technologies to predict possible failures
for rapid decision making and action;• Regular oil spill drill procedures for hydrocarbon
handling facilities;• An oil spill trajectory prediction system to provide
efficient response to oil spill emergencies in themarine environment. The prediction system offers
user-friendly interfaces for forecasting oil spills
through real-time online queries with their
outputs streamed to a dashboard for visualization
and analysis;

Number of hydrocarbon spills
Volume of hydrocarbon spills (barrels)
Recovered hydrocarbon (%)** This figure has undergone external limited assurance in accordance tothe ISAE 3000 (revised). The assurance report can be found online on
the Sustainability section of our website.
72

ARAMCO | SUSTAINABILITY REPORT 2023

2023

2022

2021

12

15

13

8,566

**

142,885

14,447

88

**,1

9

94

**

**

** This figure has undergone external limited assurance in accordance to the ISAE 3000 (revised). The
assurance report can be found online on the Sustainability section of our website.
1. In 2022, the largest spill was due to an incident concerning a major loss of containment of crude thatcaught fire. Due to the combustion of the crude, the majority of it was not recoverable, leading to a lowhydrocarbon recovery rate for 2022.

• Local and international knowledge sharing; and• Collaboration to share lessons learned fromincidents and share good practice.

In 2023, the number and volume of hydrocarbon spills
fell significantly (a 20.0% fall in number ofhydrocarbon spills, and a 94.0% decline in volume
of hydrocarbon spills compared to 2022).
While we aspire for zero oil spills, we did regrettably
have 12 oil spills, which led to a volume of 8,566**
barrels being spilled. Following our significant
recovery efforts, we were able to recover 88%**of hydrocarbons.
Of these 12 oil spills, nine were onshore witha cumulative volume of 8,551 barrels and three
offshore spills in the Arabian Gulf.
All spills were rapidly halted by the response teamand the impacted sites were rehabilitated to eliminate
further environmental impacts. One onshore oil spillwith a volume of 8,335 barrels that was due to adamaged pipe in the East-West pipeline was
responsible for more than 97% of the total oil spills.
The affected area was remediated.
ARAMCO | SUSTAINABILITY REPORT 2023

73

Water management

OVERVIEW

CLIMATE CHANGE
AND THE ENERGY
TRANSITIONMINIMIZINGENVIRONMENTAL
IMPACT

SAFE OPERATIONSAND PEOPLE
DEVELOPMENTGROWINGSOCIETAL VALUE

GOVERNANCE

DATA

Water management

Our approach to waterWith the country’s arid environment, and Saudi
Arabia ranked as the eighth most water stressedcountry in the world1, Aramco has long recognized
the value of water. Since recording measurements
began in 1978, Aramco has been able to conserve
more than 160 billion gallons of groundwater.
More than 1,600 groundwater monitoring wells in
63 facilities assess groundwater quality.

As disclosed in our 2022 Sustainability Report,
Aramco is pursuing a water neutrality aspiration
to conserve water natural resources and reduce
dependency on non-renewable water supply(groundwater). To achieve this goal, across ourbusinesses in Saudi Arabia and abroad, we are
reducing our extraction of groundwater by using
non-traditional water sources such as seawater,
treated sewage effluent, and treated reject streams.
We measure water conservation performance through:• Reviewing water conservation data and key
performance metrics;• Conducting water optimization studies on capitalprojects;• Assessing Company operating facilities forcompliance; and• Following good industry standards and water
conservation technologies.
In 2023, freshwater withdrawal fell by 0.7%
compared to the prior year. This reduction was due toeffective water conservation efforts in our operations.
While our freshwater withdrawal fell, our freshwater
consumption was 89.9** million m3 in 2023, which is
a 4.0% reduction compared to prior year.

Award
North Ghawar Producing Department wins the2023 Manufacturing Leadership Award for its
Hybrid Produced Water Treatment Technology
North Ghawar Producing Department has won
the international Manufacturing LeadershipAward under the engineering and production
category. The National Association of
Manufacturers’ Manufacturing LeadershipCouncil recognizes world-class manufacturing
companies and individual leaders for theiroutstanding efforts and projects.

74

ARAMCO | SUSTAINABILITY REPORT 2023

Assisted by our corporate digitalization vision, wemonitor hydrocarbon discharge to water throughthe hydrocarbon discharge to water (HC2W)
dashboard. Performance, since 2021, shows an overall
positive trend with a sustained reduction in the

During the year, we introduced a new metric tomeasure freshwater intensity (m3/boe). The metricmeasures the total freshwater consumed relative to
our hydrocarbon production. In 2023, our freshwater
intensity was 0.02 m3/boe. There are no prior year
comparatives.
Freshwater consumption(million m3)
Freshwater withdrawal(million m3)
Freshwater intensity*(m3/ boe)

2023

2022

2021

89.9**

93.6**

94.6

135.7

136.6

137.3

Metric not
0.02
disclosed previously

Wastewater anddischarges to water

By virtue of its large operations, Aramco produces
significant volumes of wastewater. A comprehensive
wastewater effluents management program is
implemented to protect the environment andpublic health.
This is achieved through the following measures:• Developing and updating the Company’s wastewatercompliance and engineering standards;• Optimizing the design of wastewater facilities toadequately treat wastewater; and• Maintaining a vigilant wastewater discharge
monitoring program.

• Proactive procedures to avoid any incidental
discharge;• Preventive upkeep of aging equipment; and• Enhanced tracking and monitoring throughthe HC2W Corporate dashboard.

Hydrocarbon discharge to water(barrels)2023
14.3**
2022

volume of hydrocarbon discharged. This is due
to various actions being taken, including:

16.4**
30.7

2021

Sustainability in action

Aramco’s progress towards its water neutrality aspiration
Below are some selected case studies of the various water management initiatives taking place across Aramco in pursuit of ourwater neutrality aspirations.
Embracing digitization to conserve
groundwater
Aramco piloted digital technology toenhance the recovery of the reverse
osmosis process at one of our facilities
in 2023. Captured data revealed that
more than 10% groundwater (i.e. 0.6
million m3 per year) could be conservedby real-time monitoring through alerts
and forecasts generated by the tool.
Optimizing water usage withenhanced data systems
Our Drilling & Workover team delivered
an enhanced water data gathering andanalysis system. All onshore andoffshore departments can now monitor
and report their water data for drilling,
workover and water well rigs in acommon electronic platform. This data
is used to optimize water usage.

Utilization of ultrasonic technology
to conserve groundwaterIn our South Ghawar production facility– part of the largest conventional oil fieldin the world – Aramco demonstrated theapplication of ultrasonic cleaners as analternative to conventional high-pressure
jetting cleaning of valves and piping.
This demonstrated that efficient utilizationof an ultrasonic cleaner can potentiallyresult in substantial groundwater saving.
Groundwater conservation in Abqaiq
We are replacing the use of aquifer waterwith seawater injection for reservoirpressure maintenance. Upon completionin 2024, the project is expected to supply
76% of the injection volumes fromseawater. This share is expected toincrease to 100% by 2029.

Achieving water neutrality at Jazan
At the Jazan Refinery Complex,
industrial and sanitary wastewater are
treated in a centralized wastewater
treatment plant equipped withtechnologies for total reuse, to achieve
substantial reduction in groundwateruse. The facility manages both the
Jazan Refinery pre-treated industrial
effluent and sanitary wastewater fromthe refinery, marine terminal, and our
integrated gasification combined cycle
power plants.

Our approach to wastewater and discharges to water
are informed by relevant national and internationalframeworks or standards, including the Executive
Regulations for the Protection of Aqueous Media
from Pollution, among other Saudi Arabia
Government Environmental Standards; and Ipieca’s
Oil and Gas Industry Guidance on Voluntary
Sustainability Reporting – Discharges to Water.

* Metric reported for the first time externally.
** T his figure has undergone external limited assurance in accordance tothe ISAE 3000 (revised). The assurance report can be found online on
the Sustainability section of our website.
1. World Resources Institute.

** T his figure has undergone external limited assurance in accordance to the ISAE 3000 (revised). The assurance report can be found online on the Sustainability section of our website.
ARAMCO | SUSTAINABILITY REPORT 2023

75

OVERVIEW

CLIMATE CHANGE
AND THE ENERGY
TRANSITIONSAFE OPERATIONSAND PEOPLE
DEVELOPMENTMINIMIZINGENVIRONMENTAL
IMPACTGROWINGSOCIETAL VALUE

GOVERNANCE

DATA

Product stewardship and waste management

Product stewardshipand waste management
Industrial waste management
In 2023, we made progress in meeting key milestones
in our corporate waste management strategy tominimize and divert landfilled waste. Aramco’s
operating facilities have been conducting waste
minimization assessments to identify opportunities
to reduce industrial waste generation and enhance
the implementation of environmentally sustainable
practices across our operations.
We have continued to implement automatic crude oiltank cleaning technologies to recover hydrocarbons
from oily sludge tank bottoms, a practice that iscontributing to enhanced industrial waste
management system and operational efficiency. We
are also collaborating with potential off-takers forspent catalysts for reuse and recovery purposes.
The Company is developing novel circular technology
solutions in partnership with its subsidiary SABIC andapplying them at scale to reduce single-use plastic
waste and meet recycling regulations. These solutions
include integrating mixed plastic waste into refineries
to produce circular products and creating large-scale
plastic sinks such as plastic waste in asphalt.

2023

2022

2021

Industrial waste recycled (%)

35.7

**

39.9

39.8

Industrial waste disposed1,2(metric tons)

481,561

318,656

240,255

Industrial waste disposed –Upstream (metric tons)

253,044

Breakdown not disclosed
previously

Industrial waste disposed –Downstream (metric tons)

174,790

Breakdown not disclosed
previously**** This figure has undergone external limited assurance in accordance to the ISAE 3000 (revised).
The assurance report can be found online on the Sustainability section of our website.
1. The name of this metric was changed from industrial waste generated to industrial waste disposed in
2023. The definition of the metric remained the same.
2. Industrial waste disposed number includes operationally controlled affiliates and other waste streams
not generated by upstream and downstream operations.
76

ARAMCO | SUSTAINABILITY REPORT 2023

In 2023, the Company generated 481,561 metric tonsof industrial waste, which was disposed of incompliance with regulations and standards. While ourefforts to minimize waste have improved, the increase
in industrial waste from 2022 was attributed to theCompany’s expanded operations and our efforts
in improving the industrial waste reporting system.
As part of our industrial waste management
contractor monitoring program, we have conducted
technical site visit assessments to our industrial waste
management third-party service providers to ensurethat our waste is being managed in line with ourindustrial waste management standards and as per
governmental regulations. The Company hascompleted the revalidation of existing industrial
waste management service providers currently
available in the Company’s Qualified Supplier List,
which included 22 third-party industrial waste
management and transport service providers forsustainable management of our generated
industrial waste.

Sustainability in action

Repurposing waste into
sustainable concrete
In 2023, we conducted a pilot scheme whereby
abrasive materials waste (such as copper slag) was
reused to create a more sustainable concrete tominimize waste generation. This concrete provides
a higher compressive strength than conventional
concrete. It can prevent thousands of tons of
blasting materials waste from being sent tolandfills, by reusing them in Aramco projects fornon-structure applications such as walkways,
wheel stops, or concrete traffic barriers.

Bringing sustainability to ouroffshore and marine activities
Sustainability in action

Aramco is focusing on implementing circular economy principles across
our operations to lower emissions and provide innovative solutions for amore sustainable future. We have identified a new area for environmental
improvement, including offshore waste management, as part of our drivefor continuous improvement and operational excellence.
The Marine Waste Recycling Program (MWRP) aims to use offshore waste,
as raw materials for future products, and is being implemented at Tanajib
Marine Facility, one of the world’s largest offshore oil operations, whichhouses 500 assets in 10 oil and gas fields.
In 2023, the MWRP resulted in more than 1,200 tons of waste materials
being successfully sorted and recycled from Aramco Tanajib Marine
Facility through nearly 700 collection trips.
Aramco has also improved marine safety and performance byimplementing SmartShip technology, which utilizes over 1,000 sensors
and artificial intelligence to monitor and remotely access marine vessels,
resulting in an 8% reduction in fuel consumption and carbon emissions
per ship annually.
We have also introduced Hybrid Vessels technology, which combines
traditional propulsion systems with electric battery systems, similar to a
hybrid vehicle but on a much grander scale. The technology has helped
to reduce GHG emissions, fuel consumption, and maintenance costs
since implementation.

Corporate circular economy roll-out
We continue to roll-out the circular economy program
across the Company value chain from design andengineering followed by procurement, construction,
operation, services, to digitalization and information
technology. To date, we have trained and certified
over 2,800 employees from different segments of ourbusiness in circular economy. This is supported by acircular economy guidebook and circularity maturity
assessment to guide organizations across the Company
in their circularity journey. Over 200 circular economy
initiatives have been implemented, adopting circularbusiness models aiming to optimize resources
utilization and minimize environmental impact.
Drilling and Workover (D&WO) circularity program
During 2023, D&WO implemented adopting circularbusiness models aiming to optimize resources
utilization and minimize environmental impact.
Circular economy initiatives focused on materials,
chemicals consumption, assets utilization, water
conservation, and waste minimization in drilling
and workover operations.

In 2023, we recycled and reused over 3.9 million
barrels of drilling fluids, refurbished over 2,000
wellheads and pieces of well control equipment,
reutilized more than 6,000 repaired drilling assets,
and refurbished over 8,500 metric tons of oil country
tubular goods. We implemented closed loop drilling
practices in 257 well sites, which allowed us to reducewater consumption at these wells by 13 million barrels
and to reduce wastewater by 3 million barrels.
Procurement and Supply Chain Management(P&SCM) circularity program
We continue to implement circular economy principles
in our procurement and supply chain by adopting
circular business models, such as circular procurement
and reverse logistics, sharing, and asset’s life extension.
The P&SCM circularity program consists of circular
initiatives that align with our circular economy
principles, strategies, and corporate policies. The
program includes reverse engineering spare parts,
shelf-life extension, refurbishment programs, andscrap recycling.
During 2023, P&SCM circularity programs recycled
more than 85,000 tons of materials such as ferrous
scrap, plastic drums, and aluminum.

ARAMCO | SUSTAINABILITY REPORT 2023

77

The King Abdulaziz Center for World Culture
Aramco’s flagship social initiative, the King Abdulaziz
Center for World Culture (Ithra- meaning “enrichment”
in Arabic), aims to make a tangible and positive impact
on human development by inspiring passion for knowledge,
creativity and cross-cultural engagement while delivering
world-class experiences.

Growingsocietal value

Labor practices and national content...................... 82
Human rights in the supply chain............................ 87
Community and society............................................. 88
Economic contribution.............................................. 93

78

ARAMCO | SUSTAINABILITY REPORT 2023

ARAMCO | SUSTAINABILITY REPORT 2023

79
79

OVERVIEW

CLIMATE CHANGE
AND THE ENERGY
TRANSITIONMINIMIZINGENVIRONMENTAL
IMPACT

SAFE OPERATIONSAND PEOPLE
DEVELOPMENTGROWINGSOCIETAL VALUE

GOVERNANCE

DATA

Growing societal value
Performance of our key metrics
Material issue

Relevant metrics

Labor practices

Number of people on Aramcosponsored community
programs1

J Read moreon page 82

As we expand our business globally, we seek to grow societal value
wherever we operate. We do this by sharing our extensive experience insupporting the Kingdom's aspirations with our host communities aroundthe world. Saudi Arabia is undergoing an unprecedented social, economic,
and cultural transformation under Vision 2030, and Aramco is playing an
integral role in implementing the Kingdom’s landmark program.

National content
J Read moreon page 82

2023

2022

15,09912,16090.3

90.9

Saudization (% of Saudi
nationals as part of Aramco’s
workforce)
Saudization of
construction contracts (%)
Saudization ofservice contracts (%)

Since opening in 2018, our Ithra hub has become an epicenter for culture,community, art, and knowledge, while we are also driving economic
growth and diversification through our twin iktva and National Champions
programs. From the inception of our iktva program to the end of 2023, ourcumulative iktva GDP contribution has totaled $202.9 billion dollars.

Cumulative iktva GDP
contribution* ($ billion)

Community
and society

Social investment2($ million)

J Read moreon page 88

Total number of volunteers3

Economic
contribution
J Read more

Direct economic value
generated and distributed($ million)

on page 93

28.0

56.2

57.2

202.9

166.0

475

453

7,037

4,941

Aramco’s total domestic spending is estimated to have contributed$202.9 billion in GDP since iktva’s inception, when considering thedirect and indirect supply chain contribution to the Kingdom’s
economy. This result was driven by an increase in in-Kingdom
spending, growth in local investments and increased suppliercontributions across all iktva components.
In 2023, we made social investments of $475 million in Saudi Arabia
and abroad 2. More details on some of these projects is provided on
page 90.

168,590

Breakdown of oureconomic value
generated anddistributed is on
page 106.

The number of people in our sponsored community programs
increased by over 24.2% compared to 2022, demonstrating our firm
strategy to building capacity and capabilities of local people in
Saudi Arabia.

Aramco continues to contribute to the Kingdom’s Saudization
program, whereby 90.3% of our employees are Saudi nationals.
Compared to the prior year, there was a year-on-year increase in the
Saudization of our third-party contracts, with the Saudization of
construction contracts reaching 29.7% (versus 28.0% in 2022).

29.7

171,633

Total number of volunteering
hours3

StatusAramco fosters a volunteering and giving mindset among both
employees and community members, across a range of programs
and initiatives. As a result, the total number of volunteers and total
number of volunteer hours increased compared to 2022.
Aramco continued to create economic value wherever it operates
as it recorded revenues of $441 billion, made $205 billion in
payments to governments 4, and increased dividends5 payments by
29.1% ($102 billion in 2023 versus $79 billion in 2022).

J Full metric table on page 1052023 performance

Saudization(% of Saudi nationals as part of Aramco’s workforce)

2023

90.3

2022

90.9

2021

90.5

iktva procurement spend in-Kingdom
(%)

59.0

2021

Total number of volunteers1
7,037

2023

4,941

2022

ARAMCO | SUSTAINABILITY REPORT 2023

millionbillion

65.0
63.0

2022

80

Social investments2

Aramco has various social investment programs, which look
to improve the health and well-being of our host communities
around the world.

Cumulative iktva GDP contribution*

2023

2021

$475
$202.9Our contribution to the UN SDGs

4,153

* Metric reported for the first time externally.
1. Increased data management identified that in the 2022 Sustainability
Report, Aramco’s volunteering hours consisted of not only employees’
volunteering hours but also members of our communities. Therefore,
from 2023 onwards, Aramco will now separately report the ‘number ofvolunteers’ and ‘number of volunteering hours’ for both employees andmembers of community volunteering with Aramco.
2. Updated methodology: this is the first year we are reporting on the costsof running Aramco-built schools, as part of our social investment. We
have also revised the prior year figure to reflect this change. With thisupdated methodology, the 2022 figure is now $453 million compared to$370 million under the previous methodology.

Aramco promotes lifelong learning and development by building
schools and establishing market-driven training centers for a skilled
Saudi workforce. The Company also supports education centers forindividuals with disabilities, such as the Hiba Center for Down
Syndrome and the Abdullatif AlFozan Autism Center.
Supporting the economic development of our employees andcommunities in-Kingdom via our iktva spend, various homeownership and Aramco initiatives to seed micro industries(e.g., Roseyar, beekeeping in al-Baha, fisheries in Yanbu
and Baish, olive products in al-Jouf, coffee cultivation in Jazan).

Sustainable Industry: Aramco prioritizes a top-tier local supply chain for
more sustainable energy solutions.
Diverse Infrastructure: Aramco's Kingdom-wide infrastructure
contributions span natural gas, roads, educational facilities, and cultural
centers.
Partnering with governments, suppliers, non-profit organizations, andeducation institutions. During 2023, $475 million2 was invested in various
social initiatives, supporting more than 30 non-profit organizations
around the world.

* Metric reported for the first time externally.
1. These programs include the Vocational College Internship Program (VCIP), University Internship Program (UIP), Summer enrichment program, Tomooh program, Advantage program,and Arizona Centers for Comprehensive Education and Life Skills (ACCEL) International Ajyal Center.
2. Updated methodoloy: this is the first year we are reporting on the costs of running Aramco-built schools as part of our social investment. We have also revised the prior year's figure toreflect this change. With this updated methodology, the 2022 figure is now $453 million compared to $370 million under the previous methodology.
3. Increased data management identified that in the 2022 Sustainability Report, Aramco’s volunteering hours consisted of not only employees’ volunteering hours but also members of ourcommunities. Therefore, from 2023 onwards, Aramco will now separately report the ‘number of volunteers’ and ‘number of volunteering hours’ for both employees and members ofcommunity volunteering with Aramco. Metric reported externally for the first time externally.
4. Figure includes income taxes, royalties and dividends to the Saudi government.
5. Dividends paid includes dividends to shareholders and non-controlling interests in subsidiaries.
ARAMCO | SUSTAINABILITY REPORT 2023

81

Labor practices
and national content

OVERVIEWLabor practices and national content

Building the local workforce and supply chain
in the Kingdom of Saudi Arabia

With our headquarters in Saudi Arabia, we havea proud, decades-spanning history of educating andtraining Saudi nationals, as well as our international
workforce. From investing in schools to supporting
national technical training centers across Saudi Arabia
to sponsoring tens of thousands of
employees and students in undergraduate
and post-graduate education, we believe%
we run one of the largest corporate-led
The number of people on our
training and education programs in thesponsored community programs1
world. This has delivered the enormous
increased by over 24.2%, comparedbenefit of a highly skilled workforce ofto 2022, demonstrating our aim tobuild capacity and capabilities of local Saudi men and women to our Company
people in Saudi Arabia
and to the Kingdom.

24.2

Saudization
Aramco aims to build local capacities and invest in
local citizens. Aramco continues to contribute to theKingdom’s Saudization program, whereby 90.3% of
our employees are Saudi nationals. Compared to theprior year, there was a year-on-year increase in the
Saudization of our third-party contracts, with the
Saudization of construction contracts reaching 29.7%(versus 28.0% in 2022).
Localizing the supply chain where we operate
From Aramco’s inception more than 90 years ago,
we have played a central role in supporting thedevelopment of local businesses in Saudi Arabia
with localization of our supply chain being theunderpinning strategic theme. From assisting
SMEs during startups, to helping companies expand
regionally, Aramco has developed a Saudi-basedenergy ecosystem. Today, our multi-billion dollar
in-Kingdom Total Value Add (iktva) program sits
at the center of these efforts, helping domesticenergy-related industries to flourish and become
globally competitive.
Through a series of integrated localization programs,
we are expanding our in-Kingdom support beyond
energy, assisting the Kingdom’s Vision 2030 byinvesting in, and nurturing, SMEs and larger
enterprises across multiple domains, particularly in
new technology and digital innovation, sustainability,
and manufacturing.

Broadening educational
opportunities for our youth

Through the University Internship Program, we
worked with our supply chain to increase thenumber of internship students, with 61% placements
in JVs, vendors and National Training Centers (NTCs),
and achieving 45% female participation. The
program works with over 3,000 students.
The Tomooh program aims to enhance skills ofhigh-performing secondary school students,
preparing them for university placement. In 2023,
nearly 1,000 students improved their scores on
SAT (Scholastic Aptitude Test) subjects, IELTS(International English Language Testing System),and 21st-century soft skills, along with an
introduction to the Company's core business.
The Advantage Academy is a community
initiative aimed at empowering over 600
underprivileged youth by offering training in
relevant programs such as English, math, science,pre-college test preparation, and life skills. It also
provides advisory and counseling services, as wellas edutainment such as site visits and sports.
In 2023, we increased training and recruitment
efforts for people with disabilities (PwD), achieving
the highest level of students in our apprenticeshipprograms. We boosted our intake six-fold andimplemented new policies, partnering with the
Arizona Centers for Comprehensive Education andLife Skills (ACCEL) schools to provide individual
support and development plans. The center islocated in Ajyal community, Dhahran, and has acapacity of 320 students.

ARAMCO | SUSTAINABILITY REPORT 2023

Our iktva (in-Kingdom Total Value Add) program has
been a critical enabler of the Saudi domestic energy
industry ecosystem and we are on track to meet ouriktva target of having 70% of all our procurement
spend remain in-Kingdom by the end of 2025. In theseventh edition of the iktva Forum, which showcases
all our partners under one roof, we reached morethan 85,000 visitors. The Forum showcased more than
200 investment opportunities with an annual market
share of $16 billion, and included the signing of morethan 100 localization memoranda-ofunderstanding (MoUs). Through iktva,
billionthe local content of our overall 2023
procurement spend across our supply
chain stood at 65.0% (2022: 63.0%).

$202.9Sustainability in action

1. These programs include the Vocational College Internship Program (VCIP), University Internship Program (UIP), Summer enrichment program, Tomooh program, Advantage program, andArizona Centers for Comprehensive Education and Life Skills (ACCEL) International Ajyal Center.
82

Our iktva program

GDP contribution sinceiktva's inception

In 2023, we achieved several milestones in educating
our youth and supporting our communities throughAramco sponsored community programs. From 2021
to 2023, the number of participants in these
programs grew by 68%.

MINIMIZINGENVIRONMENTAL
IMPACT

SAFE OPERATIONSAND PEOPLE
DEVELOPMENT

CLIMATE CHANGE
AND THE ENERGY
TRANSITION

By bringing our supply chain closer to our operations,
we are embedding resilience and ensuring we remain
one of the most reliable suppliers of energy to theworld. This is being achieved through attracting
Cumulative iktva GDP contribution*($ billion)
202.9

2023

166.0

2022
2021

136.0

iktva procurement spend in-Kingdom
(%)
65.0

2023
2022
2021

63.0

GROWINGSOCIETAL VALUE

GOVERNANCE

DATA

investment and cultivating partnerships with top
global energy, logistics, and manufacturing
companies, to localize suppliers’ manufacturing
capabilities and eliminate supply chain risks.
The iktva program is opening up investment
opportunities that can help drive the creation of
products and innovations that are not only indemand, but can also play a role in lowering the carbon
emissions of the industry. Iktva is also a platform
through which we implement the adoption of industry
standards and best practices in both operations andlabor practices via our supplier assessments.
In 2023, 32 new local manufacturers were established,allowing the introduction of items manufactured forthe first time in the Kingdom, including: subsurface
safety valves, safety footwear, coalescing filters, andspecialty coatings for drilling equipment. During theyear, Aramco entered into 86 in-Kingdom corporatepurchase agreements with an estimated value of$3.3 billion to build long-term collaborative
relationships with strategic local suppliers.
Aramco’s procurement of domestically produced
goods and services has benefited the Kingdom’s
economy. Aramco’s total domestic spending isestimated to have contributed $202.9 billion in GDP
since iktva’s inception, when considering the direct
and indirect supply chain contribution to theKingdom’s economy. This result was driven by anincrease in in-Kingdom spending, growth in local
investments, and increased supplier contributions
across all iktva components.

59.0

Building the first locally manufactured offshore rig
Sustainability in action

International Maritime Industries (IMI), the largest shipyard in the MENA
region, built the first Aramco Rowan Offshore Drilling (ARO Drilling)
offshore rig based in Saudi Arabia.
ARO Drilling and IMI collaborated to develop advanced localized capability
with the new jack-up rig, "Kingdom-1," equipped with the latest
technology to enhance operational excellence and safety.
Both companies are Aramco joint ventures and are products of Aramco’s
iktva program. Kingdom-1 is part of a bigger industrialization program thataims to localize the rig-building business and create jobs for Saudi citizens,providing them with valuable experience and training.

* Metric reported for the first time externally.
ARAMCO | SUSTAINABILITY REPORT 2023

83

OVERVIEW

CLIMATE CHANGE
AND THE ENERGY
TRANSITIONSAFE OPERATIONSAND PEOPLE
DEVELOPMENTMINIMIZINGENVIRONMENTAL
IMPACTGROWINGSOCIETAL VALUE

GOVERNANCE

DATALabor practices and national content continued

National Champions

Local successes
Both in Saudi Arabia and abroad, we have establisheddifferent initiatives to continue to grow societal value
wherever we operate. Some notable examples of our
National Champions’ recent efforts are presented
over the next three pages.

Aramco's National Champions program is envisioned
to be a world-class cluster of innovation that drives
business and job creation, and supports national
economic growth. In this program, we act as an
incubator to convert lucrative business ideas into
investment opportunities into thriving National
Champions, enabling job creation and economic
growth.

LAB7
The LAB7 Innovation and Product Development
Center aims to encourage the growth of theinnovation ecosystem and targets the development
of disruptive technology-based startups. LAB7 wasestablished to be a quality-feed venture builder thatgenerates high-worth startups for the Kingdom’s
venture capital (VC) ecosystem.
There are four sectors identified that LAB7 focuses on
to enhance the innovation ecosystem in the Kingdom:• Sustainability e.g., lower energy, GHG emissions
mitigation, renewables, and energy storage;• Manufacturing e.g., nonmetallics,
nanotechnology, and additive manufacturing;

Spotlight on National Champions

Supporting economic
diversification in Saudi Arabia• Digitalization e.g., AI, machine learning,
cyber security and data analytics; and• Industrial e.g., advanced robotics.

Aramco's National Champions program is unique in its scale of contribution to a local economy. Since theinception of our National Champions program, we have managed to finalize investments that are projected
to create over 46,400 jobs and potentially contribute over $14.3 billion to Saudi Arabia’s GDP.

(b) S

Sustainability

DigitalManufacturing

Industrial

pr

an d
ea s

( a) I d

Es
row

th

am

SMEs Sustainability& Growth Program

SM

Ch

EntrepreneurshipCenter (Wa’ed
Ventures)

Es

ARAMCO | SUSTAINABILITY REPORT 2023

at

Four domains

nal

84

to l

• Invested $5 million in Tenderd, which provides
AI-generated insights to increase fleet optimization
and reduce emissions, targeting capital-intensive
industries, such as construction and logistics;

e SM

a ti oWorld-class

A world-class cluster ofinnovation that drives businessand job creation, and national
economic growth

eed

tag

u
througho t the venture
alue
life
gv
cyc
din
le
Ad

(d) N

Industrial Investment
Program

s

e- s

e -s

a r t up

Some of the notable transactions included:• Invested $0.5 million in Mighty Buildings, which
is a construction technology company that creates
sustainable high-quality homes using materials
science, 3D printing, and robotics.

Our program focuses on four domains:

st
e ed

In 2023, it launched a Sustainability Venture Builder
to diversify the fund’s investment portfolio and theKingdom’s local pipeline for startups in thesustainability field. Wa’ed-supported startups include
those addressing carbon credit issuance, real-timemonitoring for energy, emissions optimization, andthe circular economy. It has also advanced localizationof four global deals in AI, space, cybersecurity, and3D printing modular construction.

• Invested $1 million in Excess Materials Exchange,
which is a circular economy platform that aims tofind circular uses for excess materials and waste
streams to reduce their environmental footprint; andThe program is focused around four domains – manufacturing, industrial, sustainability and digital – to drive
development from an initial idea through to a global business.

Innovation and
Product Development
Center

Wa'ed Ventures
Now a decade old, Wa’ed Ventures is Aramco’s$500 million venture capital fund designed to support
the startup ecosystem in Saudi Arabia by investing in
local tech-based startups and localizing pioneering
global innovations.

pion

G
(c)

s

+46k

Potential jobs creation+$14 billion

Potential impact to Saudi Arabia's GDP

ARAMCO | SUSTAINABILITY REPORT 2023

85

OVERVIEWLabor practices and national content continued

CLIMATE CHANGE
AND THE ENERGY
TRANSITIONMINIMIZINGENVIRONMENTAL
IMPACT

SAFE OPERATIONSAND PEOPLE
DEVELOPMENT

Aramco requires its suppliers to share our values andrespect human rights. Our Code of Business Conduct
applies to our workforce, and our Supplier Code of
Conduct (SCoC) applies to our suppliers. The SCoC setsout what we expect our suppliers to conform to in
relation to ethical sourcing, labor conditions andhuman rights.

In 2023, Taleed developed a Carbon Net-Zero Support
program for the Kingdom’s SMEs. The programprovides educational workshops and in-person
training sessions to SMEs to raise awareness on GHG
emissions estimation and mitigation possibilities.
In 2023, over 500 SMEs benefited from this program.
NamaatNamaat, Arabic for 'growth', works together withmajor global and local partners collaborating onlarge-scale investment opportunities, and enables
partnerships that support the growth of new,unicorn-scale companies.
In 2023, Namaat successfully developed and obtained
Final Investment Decision (FID) for nine transactions,adding $6.5 billion to our capital enablement figures,
resulting in a projected future increase in Saudi
Arabia's GDP of $5.4 billion and projected creationof more than 21,700 jobs.

86

ARAMCO | SUSTAINABILITY REPORT 2023

GOVERNANCE

DATA

Human rights in the supply chain

Human rights inthe supply chain

TaleedTaleed supports scalable and sustainable job growthfor small and medium-sized enterprises (SMEs) byproviding growth acceleration services, including
partnership and network building, businessdevelopment, and investment attraction.

GROWINGSOCIETAL VALUEFirst steel manufacturing complex in Gulf region
Aramco, along with Baoshan Iron & Steel Co. Ltd.
and Saudi Arabia's Public Investment Fund, intend toestablish an integrated steel plate manufacturing
complex in Saudi Arabia. The first facility of its kindin the Kingdom and the Gulf region when completed,the project aims to enhance the domestic
manufacturing sector through localizing the
production of heavy steel plates. The facility is
expected to have a steel plate production capacityof up to 1.5 million tons per year. It would produce
natural gas-based direct reduced iron using anelectric arc furnace, which aims to reduce CO2
emissions from the steel-making process by up to
60% compared to a traditional blast furnace.
Additionally, with some modifications, the plant
would be compatible with hydrogen as a fuel source
potentially reducing CO2 emissions by up to 90%,
subject to hydrogen availability.
Amiral petrochemical facility
Aramco and TotalEnergies awarded engineering,procurement, and construction contracts valued at$11 billion for the 'Amiral' complex, a future worldscale petrochemicals facility expansion at the SATORP
refinery in Jubail. This expansion is expected to
attract more than $4 billion in additional investment
in a variety of industrial sectors, including carbon
fibers, lubes, drilling fluids, detergents, foodadditives, automotive parts, and tires. It is also
expected to create around 7,000 local direct andindirect jobs.

All of our active suppliers in Saudi Arabia have signed
the SCoC, which requires Aramco’s suppliers to ensure
and respect human rights in Saudi Arabia, such asproviding a safe, sanitary, and healthy residential
and living environment for all their employees,
conducting safety training for employees, providingthem with adequate safety equipment andensuring all the supplier practices comply withthe local labor laws.

We deliver ethical awareness and SCoC training to our
suppliers. Aramco’s procurement teams perform
inspections of some of our suppliers, especially inhigh-risk locations, to check for any non-conformanceto our SCoC and/or agreed contractual arrangements,
such as contractors being provided unsafe
accommodation and/or workers being paid below thenational minimum wage.

Our suppliers are prompted to notify Aramco when
they become aware of any actual, or potential,
violation of the SCoC and communicate plans tocorrect and remedy such violations.
Aramco routinely assesses its businesses, joint
ventures, suppliers, government relationships,
acquisitions, mergers, and disposals to ensure
adoption of our values, ethics, and standards.

Active suppliers signed up to
Aramco’s Supplier Code of Conduct
(%)
2023

100

2022

100

2021

100

ARAMCO | SUSTAINABILITY REPORT 2023

87

OVERVIEW

Community and society

Community and society
Aramco has contributed positively to the Kingdom’s
development since its inception. Our early efforts
between the 1930s and 1970s focused on theKingdom’s infrastructure and industrial development.
These efforts were driven by business requirements,
but Aramco has increasingly taken a more proactive
approach to voluntary citizenship activities.
In line with the Kingdom’s push to develop
million1
a knowledge-based society, the bulk
In 2023, we made socialof our citizenship effort today is focusedinvestments of $475 million1
on people’s development andin Saudi Arabia and abroad
environmental stewardship.

$475

We believe that the most important source of energy
is people, and their ability to create change that
benefits them, their local communities, and theenvironment. Our citizenship activities span multiple
fronts: from investing in knowledge and creativity,
to conserving the biodiversity of our environment,
to supporting the development of local communities
and micro-industries.

Social investment

Over many decades, we have delivered social
investment programs in Saudi Arabia. From
infrastructure, to cultural assets, such as Ithra, tosupporting the establishment of sustainable microindustries, to health and education programs, ourinvestments have made a positive impact on millions
of people in the Kingdom.
We are drawing on this experience to support
communities and citizens across the globe, mirroring
the expansion of our commercial business. Our newly
launched Global Citizenship Signature Programs(GSPs) will bring additional scale and impact toAramco’s social investment efforts.

Global Citizenship Signature Programs
Aramco is extending its citizenship activities throughits GSPs. Launched in September 2023, the GSPs serveas platforms to address important societal issues ina way that allows the Company to make an impact.
These programs will draw on the skills of multiple
partners across a number of years.
Currently, there are two GSPs. The first focuses on
STEM education.
Under this program, Aramco, in partnership with
the Network for Teaching Entrepreneurship (NFTE),
created a challenge titled 'Aramco Connected Cities
Challenge' championed by Ahmad Al-Khowaiter,
Executive Vice President of Technology & Innovation.
Aramco’s challenge attracted the highest numberof registrations, with 462 submissions totaling morethan 1,688 student participants. Innovation Days were
held in India and Saudi Arabia with local non-profit
organizations and schools, where students werementored by Aramco employees to design solutions
using emerging technologies and STEM skills todevelop more efficient, accessible, or sustainabletransportation infrastructure in their communities.
The second GSP focuses on energy access – inparticular, providing modern, safe, and efficientcooking stoves to communities in need. In 2023, inpartnership with Envirofit International, a leadingsocial enterprise, more than 18,000 energy-efficientcooking stoves were distributed to schools andindividual homes in India in 2023. Additional GSPs
and partnerships are expected in the future.

In 2023, we made social investments of $475 million1
in Saudi Arabia and abroad. More details on some ofthese projects is provided on page 90.

CLIMATE CHANGE
AND THE ENERGY
TRANSITIONSAFE OPERATIONSAND PEOPLE
DEVELOPMENTMINIMIZINGENVIRONMENTAL
IMPACTGROWINGSOCIETAL VALUE

GOVERNANCE

DATA

Aramco-built schools

Since 1954, when we built our first government
school, Aramco has delivered the infrastructure
and assets to educate over two million students(equivalent to 6% of the total population of Saudi
Arabia, as of 2023), working hand-in-hand with
the Government of Saudi Arabia. Today, we support
160 schools, including 147 public schools, seven
Aramco-based schools, four private schools and two
special needs schools, serving approximately 83,000
students and around 8,000 staff. In 2023, Aramcocontributed around $95 million to school maintenanceand upgrades and invested an additional $60 million
in school reconstruction.
In addition to maintaining the infrastructure,
we provide tailored programs that leverage theCompany’s skills and knowledge. For example, in 2023,
Aramco supported student programs, reaching out to100 schools and impacting over 10,000 students. These
programs encompass a wide range of topics including
health care, vocational awareness, Company premises
visits, environmental initiatives, and renewableenergy. These initiatives have empowered students
to make informed decisions about their health, future
careers, safety, and environmental conservation.

Aramco-built schools

Award
Community Services wins the Global
Infrastructure & Building Award for Aramco's
smart city platform A'amer
Aramco's Community Services received theaward at the Smart City Expo World Congressin Spain, for its integrated platform, A'amer.
The platform elevates urban living throughintegrated citywide services such as
optimizing building operations, predictive
maintenance, space planning, and asset
management. A'amer provides efficiency
and sustainability benefits, including annual
savings of 1.7 billion gallons of water and20.5 GWh of energy.

Sustainability in action

In support of educating future generations, Aramco built its
first public school in 1954. Since then, Aramco has built andmaintained 160 schools in the Kingdom, resulting in over2 million graduates. Our total impact since the program's
inception is shown below:

160

Aramco-built andmaintained schools+2 million

147
2
4

Public schools

Special needs schools

Private schools

7

Private schools based in
Aramco compounds

Graduates since we started building these schools
1. Updated methodology: this is the first year we are reporting on the costs of running Aramco-built schools as part of our social investment. We have also revised the prior year figure toreflect this change. With this updated methodology, the 2022 figure is now $453 million compared to $370 million under the previous methodology.
88

ARAMCO | SUSTAINABILITY REPORT 2023

ARAMCO | SUSTAINABILITY REPORT 2023

89

CLIMATE CHANGE
AND THE ENERGY
TRANSITIONOVERVIEWSAFE OPERATIONSAND PEOPLE
DEVELOPMENTMINIMIZINGENVIRONMENTAL
IMPACTGROWINGSOCIETAL VALUE

GOVERNANCE

DATA

Community and society continued

Global citizenship

During 2023, Aramco contributed $475 million1 ofsocial investment in the Kingdom and around theworld across various initiatives. The case studies
below present some highlights of our projects
during the year, in and outside of Saudi Arabia.

A snapshot of our social investment projects around the world

Sustainability in action

EuropePlanet investment activities prioritize biodiversity, including reforestation,and coral reef regeneration.

In Europe, Aramco has supported 11
non-profit organizations across the
Netherlands, Italy, Poland, Spain,
and the UK.

Our social investment
has two pillars

The Netherlands
The Friends of
Floating Farm Foundation
The Friends of Floating FarmFoundation is working incollaboration with different
stakeholders and innovative
organizations researchingcircular business models inagriculture. Aramco has
supported the Floating Farm

People social investments focus on two key areas of support, knowledge, andcreativity and social economic development

Saudi Arabia
While we have highlighted otherprojects on previous pages in
Saudi Arabia, here we present
two additional projects that
we supported in 2023.
Rub’ al-Khali
Rub’ al-Khali Restoration
Aramco continued its
restoration of the Rub’ al-Khali to
its natural state by preventing key
threatening processes (such as
off-road driving, hunting), andreintroducing locally extinct
species (including ostriches) withina natural, functioning ecosystem
maintained at equilibrium and freeof non-native species.

Asia
In Asia, Aramco has supported 10
organizations across China, India, Japan,
Malaysia, South Korea, Singapore, andVietnam, with various environmental,
educational, social, and medical initiatives.

90

ARAMCO | SUSTAINABILITY REPORT 2023

since 2019 and, through its 2023
donation, continues to backresearch and development into
more sustainable and innovative
farming techniques. This
includes developing a sustainable
water desalination unit
providing clean freshwater forfood production. It serves the
Rotterdam area of around
750,000 local residents.

PolandPerspektywy Foundation
Perspektywy is a foundation
established to promote and support
education. In this partnership,
Aramco has assumed patronage of
two esteemed and highly popular
programs initiated by thefoundation: ‘Girls as Engineers!’ andthe ‘Perspektywy Women in Tech
Summit’ – one of the biggest
conferences for women intechnology, science, and innovationin Europe.

Americas
DhahranIthra iRead Program
The Ithra Reading Program(iRead) is a book review
competition and is one of theflagship programs of Ithra. The
program aims to celebrate thelove of reading among youth inSouth Korea
Ulsan Metropolitan
Council
We supported Ulsan
Metropolitan Council on Social
Welfare’s recycling education
program through the
manufacturing of chairs andbenches made by blending
high-strength concrete and
28 tons of used plastic collected
through a five month-long plastic
recycling campaign. The recycledchairs and benches are to beinstalled at eight major tourist
locations across Ulsan, including
the Taehwa River National
Riverside Park in Ulsan.

the Arab world and promoteknowledge-seeking throughvarious activities such ascompetitions and public
enrichment events. In 2023,
it received more than 125,000
book reviews from participants
and it expanded beyond Saudi
Arabia and into the Arab world.

India
Life Lab Science Program
We upgraded the physicalinfrastructure of government
schools by installing low-costmini science learning centers in
100 schools, benefiting
approximately 10,000 students
across districts in India.

1. Updated methodology: this is the first year we are reporting on the costs of running Aramco-built schools as part of oursocial investment. We have also revised the prior year figure to reflect this change. With this updated methodology, the2022 figure is now $453 million compared to $370 million under the previous methodology.

In the Americas, Aramco has
supported 17 non-profit organizations,
including national, regional, and/or
state charities, in environmental, STEM,
and social projects.
United States
Feeding America
Feeding America stores
emergency food supplies
throughout the country for quick
distribution in the event of adisaster. Our support has helped
to provide over 290,000 meals
across the US.

$18+

millionAramco and its employees
collectively donated over
$18 million for disaster relief
around the world

South Texas , United States
Galveston Bay Foundation
Helps to clean bay waters from
pollutants and protect shorelines
from hurricanes. With Aramco's
support, the Foundation has
planted over 20,000 marsh grass

Disaster Relief
Complementing our social investment, we have amatched giving program where Aramco matches any
donations that our employee makes. Collectively, over
$18 million of donations were given to disaster
relief efforts in four countries.
Turkey and Syria, Earthquake Relief:
23,895 employees raised $3.2 million. Aramco
matched these donations resulting in total
combined donations of $6.3 million.

across 1.05 acres of wetlands,
with a projected carbon
sequestration of approximately
2.1 tons of carbon dioxideannually. Several acres of
wetlands have also been readiedfor future plantings.

China, Typhoon Relief: total donation
amount $3 million.
Palestine, Gaza Relief Campaign: 21,711 employees
raised more than $3.4 million. With Company
match, total combined donation is $6.8 million.
Sudan, Humanitarian Relief: 12,180 employees
raised $1.1 million dollars. Aramco matchedthese donations resulting in total combined
donations of $2.2 million.

ARAMCO | SUSTAINABILITY REPORT 2023

91

OVERVIEW

Community and society continued

Volunteering

Aramco fosters a volunteering and giving mindset
among both employees and community members
across a range of programs and initiatives.
This includes:• Ramadan supplies Care Box volunteer program;• Company matched giving programs;• Partnership with Al Fozan Academy to train students
and teachers in volunteering;• Corporate Blood Donation Campaign;• Ithra, Aramco’s largest social initiative, offers
significant volunteering opportunities to both
employees and community members; and• Globally, in markets where Aramco operates, there
are multiple Aramco sponsored volunteer programs.
In 2023, Aramco’s employees completed 18,179
volunteering hours.1
The total number of volunteers increased by 42.4%
in line with greater awareness of our volunteering
program and our ambition to continue increasing ourcommunity engagement.

7,037

2023

4,941

2022

4,153

2021

2021

Metric not disclosed previously

136,2842023

18,179Metric not disclosed previously
2021 Metric not disclosed previously

2022

Number of Aramco facilitated community volunteers*,1
3,632

2023

168,590*,1

3,405
Metric not disclosed previously

2022

Number of employee volunteering hours

Number of employee volunteers
2022

171,633

2021

*,1

2023

2023

Metric not disclosed previously

2023

2021

Metric not disclosed previously

2022

Metric not disclosed previously
2021 Metric not disclosed previously* Metric reported for the first time externally.
1. Increased data management identified that in the 2022 Sustainability Report, Aramco’s volunteering hours consisted of not only employees’ volunteering hours but also members of ourcommunities. Therefore, from 2023 onwards, Aramco will now separately report the ‘number of volunteers’ and ‘number of volunteering hours’ for both employees and members ofcommunity volunteering with Aramco.
92

ARAMCO | SUSTAINABILITY REPORT 2023

Economic contribution
Operating in over 30 countries and engaging acrossthe entire value chain, Aramco strives to create value
and foster positive economic impacts in every location
we serve. In addition to our cumulative iktva GDP
contribution of $202.9 billion in Saudi Arabia, wehave made $475 million1 in social investments
supporting a range of social and environmental
initiatives around the world. Our payments togovernments in the various countries where we dobusiness reached $205 billion3.

1.4

Social investments1($ million)

475

R&D spend($ billion)(2022: 453)

(2022: 1.2)

441

Cumulative iktva GDP
contribution*($ billion)

Payments to Saudi andforeign governments3($ billion)

Dividends4($ billion)(2022: 535)

205

2

202.9
(2022: 166.0)

102(2022: 79)

121

Net income($ billion)

153,454GROWINGSOCIETAL VALUE

GOVERNANCE

DATA

Economic contribution(2022: 229)

Number of Aramco facilitated community
volunteering hours*,12022

MINIMIZINGENVIRONMENTAL
IMPACT

SAFE OPERATIONSAND PEOPLE
DEVELOPMENT

Revenue($ billion)

Total number of volunteering hours1

Total number of volunteers1

CLIMATE CHANGE
AND THE ENERGY
TRANSITION(2022: 161)

* Metric reported for the first time externally.
1. Updated methodology: this is the first year we are reporting on the costs of running Aramco-built
schools as part of our social investment. We have also revised the prior year's figure to reflect
this change. With this updated methodology, the 2022 figure is now $453 million compared to$370 million under the previous methodology.
2. This figure covers entities under Aramco Group.
3. Figure includes income taxes, royalties and dividends to the Saudi government.
4. Dividends paid includes dividends to shareholders and non-controlling interests in subsidiaries.

Promoting sports in our
local community
Sustainability in action

Al-Qadsiah Club, founded in 1967 in Khobar (close
to our head office in Dhahran), is a Saudi sports
club. The Ministry of Sports’ announcement ofAramco's full acquisition of Al-Qadsiah Club as partof the Kingdom’s privatization program, in supportof the Kingdom’s vision to build a world-class local
sports environment, has positively impacted theclub and catapulted it into a leading position in theKingdom, on and off the pitch, making it a sourceof excitement and pride for the local community.
Post announcement, we have already madeprogress in achieving our vision during the past
six months.
Our women’s sports offered at Al-Qadsiah Club
have nearly quadrupled, from three to 11 sports,
with the number of players increasing
substantially, from 33 to 137. The men's multisports section has also expanded by over 25%
from 15 to 19 sports, resulting in an increase ofplayers from 427 to 725 players.
The club's facilities transformation is ongoing,with major upgrades in the sports andadministrative facilities, Including but not limited
to purchasing of over 100 new sets of gym
equipment, 35 sets of medical equipment,
building a new multisport training pitch,
expanding the youth accommodation, andrefurbishing the club’s store.
Our efforts have borne fruit with our female
football team currently ranked second in the
Women's Premier League and our male footballteam ranking first in the Saudi First Division League.
Across various national and international
competitions, our female athletes have won
22 bronze, 18 silver, and 21 gold medals inseveral sports, including judo, swimming,and cycling. Our male athletes have also won
34 bronze, 18 silver, 35 gold medals acrossseveral sports.

ARAMCO | SUSTAINABILITY REPORT 2023

93

Placeholder image

Transparency, oversight and accountability
Al-‘Ula, Saudi Arabia
The Board of Directors is responsible for theoverall management and supervision of theCompany, and oversees effective governance,
risk, and compliance standards.

Governance

94

ARAMCO | SUSTAINABILITY REPORT 2023

ARAMCO | SUSTAINABILITY REPORT 2023

95

OVERVIEW

GovernanceAramco’s sustainability governance model strives to align its sustainability aspirations andtargets with its corporate business strategy and goals. At the Board level, we have theSustainability, Risk and HSE (Health, Safety and Environment) Committee, which provides
oversight over Aramco’s plans and performance, and advises Aramco’s sustainability, risk and
HSE policies and practices.
At the Company level, we have the Group Health, Safety, Security, and Environment
Committee (GHSSE), which establishes the Company’s health, safety, security, andenvironmental policies and reviews key issues, and the Sustainability Steering Committee(SSC), which identifies and guides sustainability-related issues to help Aramco assess potential
impacts on long-term value creation for stakeholders and the business.

Governance

As a leading oil and gas company, we recognize theimportance of good governance, which is integral
to fostering transparency, accountability, and ethicalconduct across all facets of our business. Ourcommitment to sound governance practices not
only safeguards the interests of our stakeholders,
but also enhances our operational efficiency andlong-term sustainability.
By maintaining a robust governance structure,
we aim to build trust with our investors, partners,
and communities while promoting a culture of
responsible decision making and strategic planning.
Through effective governance, we aspire to navigate
the dynamic challenges of the industry, drive
innovation, and deliver value to our shareholders
and the broader society.

CLIMATE CHANGE
AND THE ENERGY
TRANSITIONSAFE OPERATIONSAND PEOPLE
DEVELOPMENTMINIMIZINGENVIRONMENTAL
IMPACTGROWINGSOCIETAL VALUE

Our Board
Our Board members and senior executives exercise
oversight over the Company’s financial andsustainability strategy and performance. In 2023,
Board meetings achieved full attendance, with all
Board members attending each meeting. The
Company has 11 Board members, with five out of
11 members being independent.

The Board Sustainability, Risk and HSE Committee
provides leadership, direction, and oversight withrespect to environmental, social, and governancematters. The Committee provides advice onsustainability, risk, and HSE-related matters to ensurecomprehensive discussion, understanding, ownership,
and promotion of these matters on the Board. The
Committee, meeting quarterly, assesses HSE
performance, including health and safety incidents,and endorses our sustainability reports.

2023

2022

2021

63.45

62.45

61.45

7

6

5

Board members’ average attendance (%)

100

100

97

Number of independent Board members

5

5

5

Board diversity (number of females on the Board)

1

1

1

Board composition by average tenure

The Chairman of the Board is H.E. Yasir O. Al-Rumayyan.
The current members of the Board include highranking Saudi Government officials and former
senior executives from the international oil and gas,chemical, petroleum refining, petrochemical, andfinance industries.

DATA

Our sustainability governance

Board composition by average age1

The Board of Directors (Board) of Aramco oversees
the Company’s management, providing strategic
leadership and guidance, as well as assessing business
opportunities, risks, and risk mitigation controls. The
Board oversees the Company’s governance, risk,
compliance regime, and sustainability performance.

GOVERNANCE

Establishment of the New Energies Organization
Sustainability in action

To ensure we progress in our sustainability ambitions,it’s imperative our corporate and organizational
governance is agile and fit-for-purpose.

globally, capitalizing on emerging opportunities todevelop capabilities and revenues in strategic
growth markets.

Thus, in 2023, the New Energies organization wasestablished following the endorsement of thelong-term strategy to achieve the Company’s
ambitions for lower carbon solutions to meet
its GHG emissions mitigation ambition.

Over the next few years, we have allocated around
10% of our capital investments in New Energies tohelp us progress in our GHG emissions mitigation
and abatement journey.

New Energies has so far consolidated three newenergies verticals, covering Renewables, Hydrogen,and Carbon Capture & Storage. Moreover,
New Energies aims to nurture robust and moresustainable new energies businesses locally and1. For the 2023 Sustainability Report, the average age for 2023, 2022, and 2021 is calculated for each corresponding calendar year
(i.e., January 1 – December 31). In previous years, the reporting time period extended beyond the calendar year, therefore, figures forprevious years have been re-calculated herein to reflect this update of the reporting period.
96

ARAMCO | SUSTAINABILITY REPORT 2023

ARAMCO | SUSTAINABILITY REPORT 2023

97

CLIMATE CHANGE
AND THE ENERGY
TRANSITIONOVERVIEW

Governance continued
Corporate committees
Responsibility for sustainability at the Company rests
with the President and CEO, the Group Executive
Committee, and the Group Strategy Committee,
reinforced by the Group Health, Safety, Security,and Environment Committee and the Sustainability
Steering Committee.
The Company’s GHSSE Committee, led by the
President and CEO, shapes Aramco’s health, safety,
security, and environmental policies, scrutinizing
material issues, such as safety initiatives,
environmental and safety performance, compliancereviews, major incidents, insurance survey outcomes,
and cybersecurity.
Sustainability Steering Committee (SSC)
Under the guidance of the Executive Vice Presidentof Strategy and Corporate Development, the SSC
reports to both the Group Strategy Committee andGroup Executive Committee. Comprising Senior Vice
Presidents representing key Business Lines andAdministrative Areas, the SSC reviews and guides
decisions and strategies related to sustainability,and enables the Company to assess potential impacts
on long-term value creation for stakeholders andthe business.

Anti-bribery and anti-corruption
The Company has a zero-tolerance policy for
unethical behavior, expecting employees andbusiness partners to adhere strictly to the principles
outlined in its policy, covering anti-bribery, anticorruption, and anti-fraud.

Executive remuneration
Senior executive remuneration is linked to theCompany’s sustainability performance, featuring aframework that incorporates fixed and variable
components. The variable remuneration aligns withthe market and is contingent upon meeting
predefined performance goals, including
sustainability metrics such as GHG emissions intensity,
flaring, and safety.

Code of Business Conduct
Aramco’s Code of Business Conduct encompasses
principles regulating anti-bribery and anti-corruption.
Aramco mandates an enterprise-wide online training
program for Code of Business Conduct compliance,
supported by detailed policies, implementing
procedures, and guidelines. These procedures
operationalize and support our anti-bribery andanti-corruption policies, including provisions forthird-party due diligence, gifts, meals, entertainment,
and travel.

Two distinct variable pay plans are employed: theShort-Term Incentive Plan (STIP), an annual cashbased initiative rewarding performance in financial,
operational, safety, and sustainability areas, and theLong-Term Incentive Plan (LTIP), designed torecognize key financial, strategic, and environmental/
sustainability achievements over a three-year period.

Aramco provides an anonymous 24-hour hotline, theGeneral Auditor Hotline, accessible to employees,
suppliers, and stakeholders for reporting suspected
misconduct, including allegations related to bribery
or corruption. This hotline, detailed on Aramco’s
website, facilitates reporting through various
channels, including email, telephone, or the Aramco

27,674
22,575

2022
2021

Board of Directors

GHSSE Committee

Group Strategy
Committee

Group Executive
Committee

Sustainability Steering Committee

7,300

GROWINGSOCIETAL VALUE

GOVERNANCE

DATA

intranet. Aramco maintains a zero-tolerance stanceagainst any form of retaliation for good-faithreporting of suspected misconduct. As part ofcontinuous program enhancements, committees
review findings of misconduct, ensuring the prompt
implementation of appropriate and consistent
remedial measures.
As part of our ongoing improvements to ourcompliance program, we have committees to evaluate
findings of misconduct committed by personnel and/or third parties to ensure timely execution of
appropriate remedial actions.
In 2023, there was a 22.6% increase (2023: 27,674
versus 2022: 22,575) in the anti-bribery and anticorruption training hours provided to our workforce.
This is in line with our goal to constantly keep our
workforce vigilant of bribery and corruption risks.
The number of allegations received from Aramco
employees increased in 2023 in comparison to 2022.
The proliferation of digital technology and data
analytics tools across the Company, coupled withincreased awareness programs, enables our employees
to voice concerns and allegations.

Number of allegations received

Anti-bribery and anti-corruption training hours
2023

Sustainability, Risk and HSE Committee

MINIMIZINGENVIRONMENTAL
IMPACT

Ethics and compliance

The SSC evaluates the Company’s GHG mitigationplans and corporate risk assessments for items related
to sustainability. Outcomes from these evaluations arepresented to and endorsed by the Group Executive
Committee before final approval by the Board.

Sustainability governance management framework

SAFE OPERATIONSAND PEOPLE
DEVELOPMENT

826

2023

655

2022
2021

539

President and CEO

Strategy & Corporate
Development

ESG and Policy Analysis
Department

1. Effective January 1, 2023, the Corporate Development business line title was updated to Strategy & Corporate Development.
98

ARAMCO | SUSTAINABILITY REPORT 2023

ARAMCO | SUSTAINABILITY REPORT 2023

99

Data

The following table presents Aramco’s sustainability metrics for the years
2023, 2022, and 2021. Reporting boundaries for each metric and for eachyear are shown for transparency, and where possible, comparability.
There are three common terms used in reference to the metrics’ reporting
boundaries and the definitions of the commonly used terms are:• Company in-Kingdom — Saudi Arabian Oil Company in-Kingdom
wholly-owned operated assets.
• Operational control — Saudi Arabian Oil Company in-Kingdom
wholly-owned operated assets, SASREF, Motiva, ARLANXEO, Aramco
Trading Company (ATC), Aramco Services Company (ASC), Aramco Overseas
Company B.V. (AOC) and Saudi Aramco Asia Company Ltd. (SAAC).
• Group — Saudi Arabian Oil Company, together with its consolidated
subsidiaries, and where the context requires, its joint operations, joint
ventures and associates.

100

ARAMCO | SUSTAINABILITY REPORT 2023

ARAMCO | SUSTAINABILITY REPORT 2023

101

OVERVIEW

CLIMATE CHANGE
AND THE ENERGY
TRANSITIONSAFE OPERATIONSAND PEOPLE
DEVELOPMENTMINIMIZINGENVIRONMENTAL
IMPACTGROWINGSOCIETAL VALUE

GOVERNANCE

DATA

Our metrics
Material topic

Metric(unit of measure)2023 actual

2023 boundaries

2022 actual2022 boundaries

2021 actual

2021 boundaries

Scope 1 emissions(million metric tons of CO2e)54.4**,1

Operational control
excluding ATC, ASC,AOC and SAAC

55.7**,1

Operational control
excluding ATC, ASC,AOC and SAAC

52.3**,1

Operational control
excluding ATC, ASC,AOC and SAAC

Scope 2 emissions(million metric tons of CO2e)
Location-based

18.2**,1

Operational control
excluding ATC, ASC,AOC and SAAC

16.1**,1

Operational control
excluding ATC, ASC,AOC and SAAC

15.5**,1

Operational control
excluding ATC, ASC,AOC and SAAC

Scope 2 emissions(million metric tons of CO2e)
Market-based

13.0**,1

Operational control
excluding ATC, ASC,AOC and SAAC

10.3**,1

Operational control
excluding ATC, ASC,AOC and SAAC

Metric not disclosed previously

Upstream carbon intensity(Ratio of total upstream GHG
emissions (Scopes 1 and 2) toproduction sold, kg CO2e/boe)
Location-based

10.7**

Operational control

10.3**

Operational control

10.7**

Operational control

Operational control

Upstream methane emissions(metric tons of CH4)

27,708Operational control

29,193Operational control

26,754

Operational control

Upstream methane intensity(methane emissions from upstream
operations per volume of marketed
natural gas, %)0.05

Operational control

0.05

Operational control

0.05

Operational control

9.3**

Operational control

Metric not disclosed previously

Operational control

Flared gas3 (MMscf)

27,5061

Operational control

23,8181

Operational control

25,8251

Operational control

Energy intensity3 (ratio of total
net energy consumption andtotal production, thousand
Btu per boe)

153.8

Operational control

146.21,2

Operational control

116.6**,1,2

Company in-Kingdom

Energy consumption*(MMBtu/hr)

85,649% of patents granted relating
to sustainability technologies*

20

63

Operational control

4.60**,1

Operational control

Metric not disclosed previously

Operational control(including Global
Research Centers)

15

Company in-Kingdom
plus Global ResearchCenters, SASREF,
Motiva, ATC, ASC,AOC and SAAC

59

Operational control(including Global
Research Centers)

5.51**,1

Operational control

Metric not disclosed previously
14

Operational control(including Global
Research Centers)

Company in-Kingdom 52
plus Global ResearchCenters, SASREF,
Motiva, ATC, ASC, AOC
and SAAC.

Company in-Kingdom
plus Global ResearchCenters, SASREF,
Motiva, ATC, ASC,AOC and SAAC

Operational control

Operational control

Safe operations and people development
Workforceprotection

Number of fatalities

3**

Operational control

5**

Fatal accident rate* (number ofrecordable workforce fatalities
x100,000,000/total work hours)

0.305**

Operational control

Metric not disclosed previously

Metric not disclosed previously

Lost time injuries/illnesses rate
(Number of LTI cases x 200,000/
total work hours)

0.018**

Operational control

0.014 **

0.017

Operational control

1**

ARAMCO | SUSTAINABILITY REPORT 2023

2023 boundaries

2022 actual2022 boundaries

2021
actual2021 boundaries

Total recordable case rate
(Total recordable incidents x
200,000/total work hours)

0.042

Operational control

0.050

Operational control

0.054

Operational control

Health performance(Number of overdue major healthfindings x 100/total number ofopen major health findings) (%)

19**

Operational control
excluding ATC, ASC,AOC and SAAC

15**

Operational control
excluding ATC, ASC,AOC and SAAC

15

Operational control
excluding ATC, ASC,AOC and SAAC

Process safety
Number of Tier 1
and asset integrity process safety events

15

Operational control

11

Operational control

11

Operational control

Human rights

Number of grievances raised

230

Company in-Kingdom

293

Company in-Kingdom

236

Company in-Kingdom

Sites with a grievancemechanism in place (%)

100

Company in-Kingdom

100Company in-Kingdom

100Company in-Kingdom

Attrition rate (%)

2.2

Company in-Kingdom

2.4

Company in-Kingdom

2.8Company in-Kingdom

Number of Company employees

73,311Company in-Kingdom

70,496Company in-Kingdom

68,493Company in-Kingdom– 35 years and under

45,277Company in-Kingdom

45,043Company in-Kingdom

44,271Company in-Kingdom– Between 36-44 years old

14,464Company in-Kingdom

12,771Company in-Kingdom

12,023Company in-Kingdom– 45 years and above

13,570Company in-Kingdom

12,682Company in-Kingdom

12,199Company in-Kingdom

Number of female employees

5,294Company in-Kingdom

4,503

Company in-Kingdom

3,802Company in-Kingdom

Female (%) of total employees

7.2

Company in-Kingdom

6.4

Company in-Kingdom

5.6

Company in-Kingdom

Number of female employees
in leadership positions

233

Company in-Kingdom

176

Company in-Kingdom

136

Company in-Kingdom

Female (%) of total
number of new hires

24.1

Company in-Kingdom

28.4

Company in-Kingdom

31.2

Company in-Kingdom

Female employees in leadership
positions (%)

4.8

Company in-Kingdom

3.8Company in-Kingdom

3.1

Company in-Kingdom

Number of contractor employees

8,125Company in-Kingdom

7,639

Company in-Kingdom

6,339

Company in-Kingdom

Number of nationalities in theworkforce*

94

Company in-Kingdom

90Company in-Kingdom

90Company in-Kingdom

Company in-Kingdom

90.6

Company in-Kingdom

96.8

Company in-Kingdom

85

Company in-Kingdom

Not applicable as this survey isdone every two years

Employees acknowledging
92.0
performance review meetings*,1 (%)**

Employee engagement score (%)

Not applicable as this survey is done
every two years

Total hours of training anddevelopment3 (million)

9

Company in-Kingdom

Please refer tofootnote 2 below

Please refer tofootnote 2 below

Total hours of training anddevelopment (per employee)495

Company in-Kingdom

Please refer tofootnote 2 below

Please refer tofootnote 2 below

Number of hired graduates

1,665

Company in-Kingdom

1,459

Company in-Kingdom

1,447

Company in-Kingdom

Number of apprentices (new intake)

2,200

Company in-Kingdom

1,728

Company in-Kingdom

1,369

Company in-Kingdom

Number of interns

3,201

Company in-Kingdom

3,190

Company in-Kingdom

1,922

Company in-Kingdom

Operational control* Metric reported for the first time externally.
** This figure has undergone/is undergoing external limited assurance in accordance to the ISAE 3000 (revised). Upon completion of assurance, the assurance report can be found online on
the Sustainability section of our website.
1. Jazan Refinery was excluded from our GHG reporting in 2022 and 2021, while the energy metrics were excluded in 2021. In 2022, it remained in the startup and stabilization phase, andwe began reporting associated energy metrics. In 2023, in addition to the energy metrics, the stabilized units of Jazan Refinery were included in the reporting of our GHG emissions andflaring metrics.
2. As we progress on our reporting journey and our controls around ESG data mature, for this metric from 2022 onwards, we have expanded the reporting boundary from Company
in-Kingdom to operational control. The 2021 figure is at a Company in-Kingdom level only.
3. This metric is not applicable to our office-based entities: ATC, ASC, AOC and SAAC.
102

2023 actual

Breakdown of Company employees(by age)*

Flaring intensity3 (volume of
5.64**,1hydrocarbon gas flared per barrelof oil equivalent produced, scf/boe)% of sustainability-related R&D
out of total R&D spend*

Workforceprotection
continued

Labor practices

Upstream carbon intensity (Ratio of 9.6**
total upstream GHG emissions(Scopes 1 and 2) to production sold,
kg CO2e/boe) Market-based(sustainability patents filed/total
patents filed, %)Metric(unit of measure)

Safe operations and people development continued

Climate change and the energy transition
Climate change

Material topic* Metric reported for the first time externally.
** This figure has undergone external limited assurance in accordance to the ISAE 3000 (revised). The assurance report can be found online on the Sustainability section of our website.
1. In accordance with our ongoing review of our sustainability performance data, we have determined that the metric "Employees receiving regular performance reviews (%)" reported in
2022 and 2021 should be renamed "Employees acknowledging performance review meetings (%)" in order to more accurately reflect what this metric entails.
2. Updated methodology: in 2023, a ministerial decision was issued mandating that any establishment with 50 employees and above shall disclose its training data annually as per a specificprocedural guide. Therefore, the 2023 training and development hours are reported using the methodology as outlined by the Ministry Procedural Guidelines. 2022 and 2021 previously
reported numbers in the 2022 Sustainability Report would not be comparable under this methodology, thus these figures have not been disclosed in this report.
3. In line with the new methodology of calculating the training hours, the total number of training hours includes all training offered corporate-wide during the year for all employee
categories in addition to trainees and contractors.
4. Total hours of training and development (per employee) metric consists of total training offered by the company during the year for all participants including Aramco employees,
contractors and average levels of trainees.
ARAMCO | SUSTAINABILITY REPORT 2023

103

OVERVIEW

SAFE OPERATIONSAND PEOPLE
DEVELOPMENT

CLIMATE CHANGE
AND THE ENERGY
TRANSITIONMINIMIZINGENVIRONMENTAL
IMPACTGROWINGSOCIETAL VALUE

GOVERNANCE

DATA

Our metrics continued
Material topic

Metric(unit of measure)2023 actual

2023 boundaries

2022 actual2022 boundaries

2021 actual

2021 boundaries

12
Number of hydrocarbon spills
Total number of accidental
release events of liquid petroleumhydrocarbon into the environment,
where the spill incident is > 1 bbl

Operational control

Volume of hydrocarbon spills1(barrels) Total volume of liquid
petroleum hydrocarbon
accidentally released into theenvironment, where the spillincident is > 1 bbl

Operational control

142,885**

Operational control

14,447

Operational control

Operational control

9**Operational control

94

Operational control

Operational control

16.4**

Operational control

30.7

Operational control

18,566**

88**
Recovered hydrocarbon1 (%)
Percentage of liquid petroleumhydrocarbon removed from theenvironment via recovery methods
Hydrocarbon discharge to water1(barrels) The total of hydrocarbons
that are systematically released tosurface water through regulatedindustrial wastewater discharges

14.3**

SOx emissions (metric kilotons)1,4

146**

Operational control

15

Operational control

167**

Operational control

13

141

Operational control

100**

Operational control

98**

Biodiversity

Net positive impact (%)(total biodiversity areas (km2)/
Footprint area (km2) x 100)

85.6

Water
management

Freshwater consumption(million m3)

89.9****,5

The difference between the volumeof freshwater removed from theenvironment, incl. surface water,
groundwater, for use in operations,and freshwater returned to thesource. The total dissolved solids(TDS) concentration of this type ofwater is up to 2,000 mg/l

Operational control

Operational control

**

53.0

Operational control

Metric not disclosed previously

Operational control
excluding ATC, ASC,AOC and SAAC

93.6**

Operational control
excluding ATC, ASC,AOC and SAAC

94.6

Operational control
excluding ATC, ASC,AOC and SAAC

135.7

Operational control
excluding ATC, ASC,AOC and SAAC

136.6

Freshwater intensity (m3/boe)*
Total freshwater consumed
relative to our hydrocarbon
production

0.02

Operational control
excluding ATC, ASC,
AOC, SAAC

Metric not disclosed previously

Metric not disclosed previously

Industrial waste disposed1,2,3(metric tons) Total amount ofindustrial waste, hazardous andnonhazardous, generated fromoperating facilities, not including
waste recycling, reusing, and recovery

481,561

Operational control

318,656

240,255– Industrial waste disposed– Upstream1 (metric tons)

253,044

Operational control

Breakdown not previously disclosed– Industrial waste disposed– Downstream1 (metric tons)

174,790

Operational control

Breakdown not previously disclosed

35.7**

Operational control

39.9**

Operational control
excluding ATC, ASC,AOC and SAAC

Operational control

Operational control

137.3

39.8

Operational control
excluding ATC, ASC,AOC and SAAC

Operational control

Operational control* Metric reported for the first time externally.
** This figure has undergone external limited assurance in accordance to the ISAE 3000 (revised). The assurance report can be found online on the Sustainability section of our website.
1. This metric is not applicable to our office-based entities: ATC, ASC, AOC and SAAC.
2. The name of this metric was changed from industrial waste generated to industrial waste disposed in 2023. The definition of the metric remained the same.
3. Industrial waste disposed number includes operationally controlled affiliates and other waste streams not generated by upstream and downstream operations.
4. The Jazan Refinery is excluded from our SOx reporting in 2022 and 2021. In 2023, data from Jazan Refinery's stabilized units is included in our SOx reporting.
5. Ongoing management and review of the BPAs resulted in exclusion of the Manifa BPA from our NPI metric as a BPA, pending implementation of enhancements to align with theCompany’s biodiversity governance.
104

ARAMCO | SUSTAINABILITY REPORT 2023

2022 actual2022 boundaries

2021 actual

2021 boundaries

15,099Company in-Kingdom

12,160Company in-Kingdom

9,010

Company in-Kingdom

National content

Saudization (% of Saudi nationals
as part of Aramco’s workforce)

90.3

Company in-Kingdom

90.9

Company in-Kingdom

90.5

Company in-Kingdom

Saudization of construction
contracts (%)
Percentage of Saudi construction
contractors relative to the total
construction contractors'
workforce

29.7

Company in-Kingdom

28.0

Company in-Kingdom

25.6

Company in-Kingdom

Saudization of service
contracts (%) Percentage ofSaudi service contractors relative
to the total service contractors'
workforce

56.2

Company in-Kingdom

57.2

Company in-Kingdom

56.6

Company in-Kingdom

iktva procurement spend
within the Kingdom (%)

65.0

Company in-Kingdom

63.0

Company in-Kingdom

59.0

Company in-Kingdom

Cumulative iktva GDP
contribution* ($ billion)

202.9

Company in-Kingdom

166

Company in-Kingdom

136

Company in-Kingdom% of active suppliers signed up to
Aramco’s Supplier Code of
Conduct

100

Company in-Kingdom

100Company in-Kingdom

100Company in-Kingdom

Number of active suppliers

3,472

Company in-Kingdom

3,199

Company in-Kingdom

Metric not disclosed previously

Social investment ($ million)

475

Company in-Kingdom
plus ASC, AOC and
SAAC

453

Company in-Kingdom
plus ASC, AOC and
SAAC

Metric not disclosed previously

Total number of volunteers3

7,037

Company in-Kingdom
plus ASC, AOC and
SAAC

4,941

Company in-Kingdom
plus ASC, AOC and
SAAC

4,153

Company in-Kingdom

Total number ofvolunteering hours3

171,633

Company in-Kingdom
plus ASC, AOC andSAAC

168,590

Company in-Kingdom
plus ASC, AOC andSAAC

136,284

Company in-Kingdom

Number of employee
volunteers*,3

3,405

Company in-Kingdom
plus ASC, AOC and
SAAC

Metric not disclosed previously

Metric not disclosed previously

Number of employee
volunteering hours*,3

18,179Company in-Kingdom
plus ASC, AOC and
SAAC

Metric not disclosed previously

Metric not disclosed previously

Number of Aramco facilitatedcommunity volunteers*,3

3,632

Company in-Kingdom
plus ASC, AOC and
SAAC

Metric not disclosed previously

Metric not disclosed previously

Number of Aramco facilitatedcommunity volunteering hours*,3

153,454

Company in-Kingdom
plus ASC, AOC and
SAAC

Metric not disclosed previously

Metric not disclosed previously

Metric not disclosed previously

Freshwater withdrawal(million m3)

Industrial waste recycled1 (%)

2023 boundaries

Number of people on Aramcosponsored community programs1

Human rights

Sites with ISO 14001 certification1 (%)

Product
stewardshipand wastemanagement

2023 actual

Labor practices

Operational control

Quantity of sulfur oxides including
sulfur dioxide (SO2) and sulfur trioxide(SO3) expressed as SO2 equivalent1

Metric(unit of measure)

Growing societal value

Minimizing environmental impact
Local
environmental
impactMaterial topic

Community
and society

2* Metric reported for the first time externally.
1. These programs include the Vocational College Internship Program (VCIP), University Internship Program (UIP), Summer enrichment program, Tomooh program, Advantage program,and Arizona Centers for Comprehensive Education and Life Skills (ACCEL) International Ajyal Center.
2. Updated methodology: this is the first year we are reporting on the costs of running Aramco-built schools as part of our social investment. We have also revised the prior year figure toreflect this change. With this updated methodology, the 2022 figure is now $453 million compared to $370 million under the previous methodology.
3. Increased data management identified that in the 2022 Sustainability Report, Aramco’s volunteering hours consisted of not only employees’ volunteering hours but also members of ourcommunities. Therefore, from 2023 onwards, Aramco will now separately report the ‘number of volunteers’ and ‘number of volunteering hours’ for both employees and members ofcommunity volunteering with Aramco.
ARAMCO | SUSTAINABILITY REPORT 2023

105

OVERVIEW

Our metrics continued
Material topic

Metric(unit of measure)

GOVERNANCE

DATA

Currencies
Currency conversion
All financial amounts in SAR and USD in this Report
are reported in line with the exchange rates reported
in Aramco’s 2023 Annual Report.

Terms and glossary
AffiliateWith respect to financial information, the term
Affiliate is defined by IFRS, meaning the Company’s
subsidiaries, joint arrangements, and associates.

SAR/Saudi Riyal
Saudi Arabian riyal, the lawful currency of theKingdom

AGOC
Aramco Gulf Operations Company

2022 actual2022 boundaries

2021 actual

2021 boundaries• Revenues ($ million)

440,875

Group

535,188Group

359,181Group• O ther income related to sales($ million)

54,158

Group

69,178Group

41,287Group$/USD/US$/Dollar
US dollar

ARLANXEO
ARLANXEO Holding B.V., a wholly-owned specialty
chemicals subsidiary.

• Operating costs ($ million)

263,489Group

299,279

Group

194,624

Group• Employee wages and benefits($ million)

16,088Group

14,665

Group

14,066Group

Units of measurement
Barrel (bbl)
Barrels of crude oil, condensate or refined products

ATC
Aramco Trading Company, a wholly-owned subsidiaryof Aramco.

• Dividends paid includes
dividends to shareholders andnon-controlling interests in
subsidiaries2 ($ million)

101,628Group

78,863

Group

76,911Group

boe
Barrels of oil equivalent

BPA
Biodiversity Protection Area

bscf
Billion standard cubic feet

Carbon credit
A carbon credit is a tradable instrument that
represents either: a permit to emit one metric ton of
CO2 or equivalent GHG (tCO2e) into the atmosphere,
or a certificate that represents the avoidance orremoval of one metric ton of CO2 or equivalent GHG(tCO2e) from the atmosphere.

Direct economic value generated
and distributed:1

Group

229,435

Group

149,775

Group• Payments to the Saudi
government3 ($ million)

199,228

Company in-Kingdom

225,866

Company in-Kingdom

148,542Company in-Kingdom

Total R&D expenses1 ($ million)

1,386

Group

1,178

Group

1,033

Group

bscfd
Billion standard cubic feet per day
Btu
British thermal unit
GW
Gigawatts

Board composition by
average age 4

63.45

Company
in-Kingdom5

62.45

Company
in-Kingdom5

61.45

Company
in-Kingdom5

Mboed
Thousand barrels of oil-equivalent per day

Board composition by
average tenure

7

Company
in-Kingdom56Company
in-Kingdom55Company
in-Kingdom5

MMboedMillion barrels of oil-equivalent per day

Board members' averageattendance (%)

100

Company
in-Kingdom5100Company
in-Kingdom5

97Company
in-Kingdom5

MMscf
Million standard cubic feet

Number of independent
Board members

5Company
in-Kingdom55Company
in-Kingdom55Company
in-Kingdom5

MMtpa
Million metric tons per annum

Board diversity(number of females on the Board)

1Company
in-Kingdom5

1Company
in-Kingdom5

1Company
in-Kingdom5

MMtCO2eMillion metric tons of carbon dioxide equivalent

Number of allegations received
through the 24-hour hotline

826

Company in-Kingdom

655

Company in-Kingdom

539

Company in-Kingdom

Anti-bribery and anti-corruption
training hours

27,674Company in-Kingdom

22,575Company in-Kingdom

7,300

Company in-Kingdom

MW
Megawatts
kg CO2e/boe per day
Volumes are converted into a daily basis using acalendar year (Gregorian)scf
Standard cubic feetTon
Metric ton (equals to 1,000 kg)

1. This metric is converted at a fixed rate of U.S. dollar 1.00 = SAR 3.75 for convenience only.
2. Dividends paid includes dividends to shareholders and non-controlling interests in subsidiaries.
3. Figure includes income taxes, royalties and dividends to Saudi government.
4. For the 2023 Sustainability Report, the average age for 2023, 2022, and 2021 is calculated for each corresponding calendar year (i.e., January 1 – December 31). In previous years,
the reporting time period extended beyond the calendar year, therefore, figures for previous years have been re-calculated herein to reflect this update of the reporting period.
5. For this metric, Company in-Kingdom refers to Saudi Arabian Oil Company.
106

GROWINGSOCIETAL VALUE

2023 boundaries

Governance

Ethics, bribery,
and corruption(compliance)

MINIMIZINGENVIRONMENTAL
IMPACT

2023 actual• Payments to Saudi and foreign 205,027
governments3 ($ million)

Corporate
governance

SAFE OPERATIONSAND PEOPLE
DEVELOPMENT

Abbreviations, terms, and glossary

Growing societal value continued
Economic
contribution

CLIMATE CHANGE
AND THE ENERGY
TRANSITION

ARAMCO | SUSTAINABILITY REPORT 2023

Carbon dioxide (CO2)A naturally occurring gas, and also a byproduct ofburning fossil fuels and biomass, as well as land-use
changes, and other industrial processes. It is theprincipal greenhouse gas that affects the Earth’s
radiative balance. It is the reference gas against which
other greenhouse gases are measured and therefore
has a Global Warming Potential of 1.
Carbon capture, and storage (CCS)
A set of technologies that can mitigate CO2 emissions
from new and existing coal- and gas-fired power
plants, industrial processes, and other stationary
sources of CO2. It is a threestep process that includes
the capture of CO2 from power plants or industrial
sources; the transport of the captured and compressed
CO2 (usually in pipelines); and underground injection
and geologic sequestration, or permanent storage, ofthat CO2 in rock formations that contain tiny openings
or pores that trap and hold the CO2.
Sequestration and storage are often usedinterchangeably.
Carbon capture, utilization and storage (CCUS)
Utilization is where CO2 is reused in otherapplications, e.g., food preparation, carbonateddrinks manufacturing, etc.
Carbon dioxide equivalent (CO2e)
A metric measure used to compare the emissions
from various greenhouse gases based upon theirglobal warming potential (GWP). Carbon dioxide
equivalents are commonly expressed as “million
metric tons of carbon dioxide equivalents (MMtCO2e).”
The carbon dioxide equivalent for a gas is derived bymultiplying the tons of the gas by the associated GWP
MMtCO2e = (million metric tons of a gas) x (GWP of
the gas).
ARAMCO | SUSTAINABILITY REPORT 2023

107

OVERVIEW

CLIMATE CHANGE
AND THE ENERGY
TRANSITIONSAFE OPERATIONSAND PEOPLE
DEVELOPMENTMINIMIZINGENVIRONMENTAL
IMPACTGROWINGSOCIETAL VALUE

GOVERNANCE

DATA

Abbreviations, terms, and glossary continued
Carbon intensity
A measure of greenhouse gas emissions in carbon
dioxide (CO2) equivalent per barrel released to
produce oil equivalent.
Carbon markets
Two types of carbon market exist:(1) R egulatory compliance markets – used bycompanies and governments that by law haveto account for their GHG emissions. It is regulated
by mandatory national, regional or international
carbon reduction regimes.
(2) Voluntary markets – the trade of carbon credits
is on a voluntarily basis.
Carbon offset
Mitigation credits generated in one location thatare transferred to another location or entity, andare usually denominated in metric tons of a reduced
emission or MWh of renewable energy produced.
CHP
Combined Heat and Power.
Circular carbon economy
A circular carbon economy is a framework for
managing and reducing emissions. It is a closed
loop system involving 4Rs: reduce, reuse, recycle,
and remove.
Circular economy
A circular economy is an economic system designed
and built to retain the highest value of company
resources by utilizing sustainable and environmental
business models.
ClimateUsually defined as the “average weather,” or more
rigorously, in terms of the mean and variability of
relevant quantities over a period of time ranging frommonths to millions of years.
Climate change
Any significant change in the measures of climate
lasting for an extended period of time. Climatechange includes major changes in temperature,
precipitation, or wind patterns, among others, that
occur over several decades or longer.
Cogeneration
Cogeneration is a method that uses heat and powersystems to capture waste heat from gas turbines andconvert it into steam. This process captures heat,
reducing its escape into the atmosphere, and enables
the production of electricity as a natural by-product.
Company
Saudi Arabian Oil Company (The Company).
Concession
As defined and discussed on page 126 of the
Aramco Annual Report 2023.
CO2
Carbon dioxide.

108

ARAMCO | SUSTAINABILITY REPORT 2023

CO2e
Carbon dioxide equivalent.
Condensate
Light hydrocarbon substances produced with raw gas,
which condenses into liquid at normal temperaturesand pressures associated with surface production
equipment.
Direct Air Capture (DAC)
Technologies and processes that extract CO2 directlyfrom the atmosphere. The CO2 can be permanently
stored in geological formations or used as a feedstockin the production of fuels, chemicals, building
materials, and other products containing CO2.
Domestic
Refers to the Kingdom of Saudi Arabia.
Emissions
The release of a substance (usually a gas whenreferring to the subject of climate change) into theatmosphere.
Emissions reduction
Carbon reduction projects result in a net reduction
in absolute CO2 /GHG emissions relative to current
emission levels or relative to a historical baseline.
Energy efficiency
Using less energy to provide the same service. Energy
efficiency is one of the core strategies for reducing
greenhouse gas emissions from fossil fuels.
Energy intensity
An index for measuring the total energy consumed togenerate a unit of product, represented in thousand
Btus per total production in barrel of oil equivalent.
Energy transition
A significant structural change in an energy system.
Environment
The natural world, as a whole or in a particulargeographical area, especially as affected by humanactivity.
ESG
Environmental, social, and governance.
Flaring intensity
Volume of gas flared per barrel of oil equivalent
produced (scf/boe).
Freshwater
Groundwater or surface water with total dissolved
solids concentration up to 2,000 mg/l.

Greenhouse gas (GHG)
Any gas that absorbs infrared radiation in theatmosphere rather than allowing it to radiate into
space. Greenhouse gases include CO2, methane,
nitrous oxide, ozone, chlorofluorocarbons,hydrochlorofluorocarbons, hydrofluorocarbons,
perfluorocarbons, and sulfur hexafluoride.
GHG avoidance
The avoidance of GHG emissions that would
otherwise occur without the protective actions
implemented by an offset project.
GHG emission mitigation
The process of reducing CO2 (GHG) emissions fromthe Company’s operations.
GHG reduction
A quantified absolute decrease in GHG emissions
specifically related to/arising from an activity.
GHG removal
Withdrawal of a GHG and/or a precursor fromthe atmosphere by a GHG sink or GHG removal
technology.
Government
The Government of the Kingdom of Saudi Arabia(and “Governmental” shall be interpreted
accordingly).
Greenhouse gas (GHG) emissions
Any gaseous compound in the atmosphere that is
capable of absorbing infrared radiation. Generally,
consists of water vapor, CO2, methane, nitrous oxide,hydrofluorocarbons, perfluorocarbons and sulfur
hexafluoride. Aramco’s inventory includes CO2,methane and nitrous oxide.
Greenhouse Gas Protocol
The GHG Protocol establishes comprehensive global
standardized frameworks to measure and manage
greenhouse gas emissions from private and public
sector operations, value chains and mitigation actions.
It is a product of the collaboration between the World
Resources Institute (WRI) and World Business Council
for Sustainable Development (WBCSD).
Group
Saudi Arabian Oil Company, together with its
consolidated subsidiaries and, where the context
requires, its joint operations, joint ventures andassociates.
HSSE
Health, Safety, Security and Environment.

G20Group of Twenty is an intergovernmental forum
comprising 19 countries and the European Union (EU).

Hydrocarbons
Substances containing only hydrogen and carbon.
Fossil fuels are made up of hydrocarbons.

GDP
Gross domestic product. The broadest quantitative
measure of a nation’s total economic activity,
representing the monetary value of all goods andservices produced within a nation’s geographic
borders over a specified period of time.

Hydrocarbons law
Law governing hydrocarbons, hydrocarbon resources,and hydrocarbon operations existing within the
territory of the Kingdom, enacted by Royal Decree
No. M/37, dated 2/4/1439H (corresponding to
December 20, 2017), as amended.

IFRSInternational Financial Reporting Standard(s) thatare endorsed in the Kingdom and other standards
and pronouncements endorsed by Saudi Organization
for Chartered and Professional Accountants (SOCPA).
iktva
In-Kingdom Total Value Add. The Company’s
program to promote the development of a localizedenergy/industrial ecosystem.
Income tax law/tax law
Income Tax Law issued under Royal Decree No. M/1
dated 15/1/1425H (corresponding to March 6, 2004)
and its Implementing Regulations issued under
Ministerial Resolution No. 1535 dated 11/6/1425H(corresponding to August 11, 2004), as amended
from time to time.
IpiecaInternational Petroleum Industry Environmental
Conservation Association.
IPO
Initial public offering.
ISO
International Organization for Standardization.
Joint venture/JV
The term joint venture, as defined by IFRS, means a
type of joint arrangement whereby the parties thathave joint control of the arrangement have rights tothe net assets of the joint arrangement.
KAUSTKing Abdullah University of Science and Technology.
KFUPM
King Fahd University of Petroleum and Minerals.
Kingdom
Kingdom of Saudi Arabia.
LTI
Lost time injuries/illnesses.
Master Gas System (MGS)
An extensive network of pipelines that connects
Aramco’s key gas production and processing sites
throughout the Kingdom.
Ministry of Energy, Industry, and Mineral Resources
Ministry of Energy of the Kingdom. Successor to
MEIM.
Methane (CH4)
A hydrocarbon that is a greenhouse gas with a global
warming potential most recently estimated at 25 times
that of carbon dioxide (CO2). Methane is produced
through anaerobic decomposition of waste in landfills,
animal digestion, decomposition of animal wastes,
production and distribution of natural gas andpetroleum, coal production, and incomplete fossil
fuel combustion.
MotivaMotiva Enterprises LLC – located in the US.
ARAMCO | SUSTAINABILITY REPORT 2023

109

OVERVIEW

CLIMATE CHANGE
AND THE ENERGY
TRANSITIONSAFE OPERATIONSAND PEOPLE
DEVELOPMENTMINIMIZINGENVIRONMENTAL
IMPACTGROWINGSOCIETAL VALUE

GOVERNANCE

DATA

Abbreviations, terms, and glossary continued
NamaatAramco’s industrial investment program.

RTP
Reinforced Thermo Plastics.

National
Refers to the Kingdom of Saudi Arabia.

Lower Carbon Aviation Fuel
Lower Carbon Aviation Fuel (LCAF) is defined in
Annex 16 Environmental Protection (Volume IV) of
the United Nations International Civil Aviation
Organization’s Carbon Offsetting and Reduction
Scheme for International Aviation (CORSIA) as afossil-based aviation fuel that meets the CORSIA
Sustainability Criteria. LCAF can serve as acomplementary measure alongside Sustainable
Aviation Fuels (SAF) in helping to reduce aviation
greenhouse gas (GHG) lifecycle emissions.

Natural gas
Underground deposits of gases consisting of 50–90%
methane (CH4) and small amounts of heavier gaseoushydrocarbon compounds such as propane (C 3H8) andbutane (C 4H10).
NDC
Nationally Determined Contributions, or NDCs, arecountries’ self-defined national climate pledges under
the Paris Agreement, detailing what they will do tohelp meet the goals of the Paris Agreement.
Net-zero emissions
This is achieved when anthropogenic GHG emissions
to the atmosphere are balanced by anthropogenic
removals.
NGL
Natural gas liquids, which are liquid or liquefiedhydrocarbons produced in the manufacture,
purification and stabilization of natural gas. For
purposes of reserves, ethane is included in NGL. For
purposes of production, ethane is reported separately
and excluded from NGL.
Nitrogen oxides (NOx)Gases consisting of one molecule of nitrogen andvarying numbers of oxygen molecules. Nitrogenoxides are produced in the emissions of vehicle
exhausts and from power stations. In the atmosphere,
nitrogen oxides can contribute to the formation ofphotochemical ozone (smog), can impair visibility, andhave health consequences; they are thus considered
pollutants.
Operational control
Saudi Arabian Oil Company in-Kingdom whollyowned operated assets, SASREF, Motiva, ARLANXEO,
Aramco Trading Company (ATC), Aramco Services
Company (ASC), Aramco Overseas Company B.V.
(AOC) and Saudi Aramco Asia Company Ltd. (SAAC)1.
Original concession
See definition to “Concession.”
PIF
Public Investment Fund of Saudi Arabia.
Production costs
The sum of operating costs and depreciation,reflecting both the erosion of asset value over time onan accounting basis and the cost of operating thebusiness.
R&D
Research and development.

1. Referenced affiliates are separate legal entities that are subject to their own governance frameworks.
110

ARAMCO | SUSTAINABILITY REPORT 2023

Sustainable aviation fuels
Sustainable aviation fuels (SAF) are defined as
renewable or waste-derived aviation fuels that meetssustainability criteria as contained within Annex 16
Environmental Protection (Volume IV) of the United
Nations International Civil Aviation Organization’s
Carbon Offsetting and Reduction Scheme forInternational Aviation (CORSIA).
Reserves
Those quantities of liquids and gas, which by analysis
of geoscience and engineering data, can be estimatedwith reasonable certainty to be economically
producible – from a given date forward, from known
reservoirs, and under existing economic conditions,operating methods and government regulations –prior to the time at which contracts providing theright to operate expire, unless evidence indicates that
renewal is reasonably certain, regardless of whether
deterministic or probabilistic methods are used for theestimation. The project to extract the hydrocarbons
must have commenced or the operator must be
reasonably certain that it will commence the project
within a reasonable time.
Reliability
Total products volume shipped/delivered within 24
hours of the scheduled time, divided by the total
products volume committed. Any delays caused byfactors that are under the Company’s control (e.g.,terminal, pipeline, stabilization, or production)negatively affect the score, whereas delays caused byconditions that are beyond the Company’s control,
such as adverse weather, are not considered. A scoreof less than 100% indicates there were issues thatnegatively impacted reliability.
SABIC
Saudi Basic Industries Corporation.
SASREF
Saudi Aramco Jubail Refinery Company, a subsidiaryof Aramco, formerly known as Saudi Aramco Shell
Refinery Company.
SATORP

Saudi Aramco Total Refining and Petrochemical
Company, a joint venture established by Aramco andTotal Refining Saudi Arabia SAS in 2008.
Saudi Aramco/Aramco
Saudi Arabian Oil Company, together with its
consolidated subsidiaries, and where the context
requires, its joint operations, joint ventures andassociates. Any reference to “us”, “we” or “our”
refers to Aramco except where otherwise stated.
Unless otherwise stated, the text does not distinguishbetween the activities and operations of the Company
and those of its subsidiaries.
Saudi Green Initiative (SGI)
A national initiative that unites environmental
protection, energy transition, and sustainability
programs with the overarching aim of offsetting andreducing emissions, increasing the Kingdom’s use ofclean energy, and addressing climate change.
Scope 1 GHG emissions
Direct emissions, which include GHG emissions fromon-site fuel combustion, flaring, venting and fugitive
emissions.
Scope 2 GHG emissions
Indirect emissions, which account for GHG emissions
from offsite power generation including electricity
and steam.
Senior executives/Management Committee
The members of the Senior Management of Aramcoholding the title of CEO, President, or Executive
Vice President.
Senior management
The senior management and other officers of Aramco
who, while subordinate to the senior executives, arestill involved in the management of Aramco andparticipate in driving its strategies, decisions oroperations.
Shareholder
Any holder of shares.
Shareek program
A cooperative government program that is designed
to provide support via various pillars, including
financial, monetary, operational, and regulatory
cooperation and asset investment, striving to enhancethe development and resilience of the Saudi economy
by increasing the gross domestic product, providing
job opportunities, diversifying the economy andstrengthening cooperation between public andprivate sectors.
SME
Small and medium enterprise.
SOCPA
Saudi Organization for Chartered and Professional
Accountants.
S-Oil
S-Oil Corporation.

SSC
Sustainability Steering Committee.
STEM
Science, technology, engineering and mathematics.
Subsidiaries
Except with respect to financial information, the term
subsidiaries means the companies that Aramcocontrols through its ability to influence the actions or
decisions of another person through, whether directly
or indirectly, alone or with a relative or affiliate (i)holding 30% or more of the voting rights in a
Company, or (ii) having the right to appoint 30% ormore of the Board of a Company.
With respect to financial information, the term
subsidiaries is defined by IFRS, meaning entities overwhich the Company has control.
Synthetic fuels
A broad class of hydrocarbon fuels that are
chemically synthesized from hydrogen and CO2 thatis captured either directly from the air or fromindustrial installations.
Tier 1 process safety event
An unplanned or uncontrolled release of any
material, including non-toxic and non-flammablematerials, from a process that results in one or moreof the consequences listed in API Recommended
Practice-754.
Total recordable case (TRC) rate
Sum of recordable cases that occurred in theworkplace per 200,000 work hours.
UN SDGs
United Nations Sustainable Development Goals.
Upstream carbon intensity
Upstream carbon intensity is calculated based on the
total upstream Scope 1 and Scope 2 GHG emissions
divided by the upstream marketed production andexcludes sales gas own use and AGOC, as found on
the assurance statement.
U.S./United States/USA
United States of America.
Well-to-wakeRefers to the entire process from fuel production, anddelivery to using on-board ships and GHG emissions
produced therein.
Wheeled power
The power generated by an Aramco cogeneration
facility and transferred through the electricity grid tobe used by another Aramco facility. The transaction isgoverned by a principle buyer and is enabled by theregulatory frameworks in the Kingdom.
VOC
Volatile organic compounds.
Zero carbon
Applies only to energy sources, processes, products,
projects, etc., that emit zero carbon emissions.
ARAMCO | SUSTAINABILITY REPORT 2023

111

OVERVIEW

CLIMATE CHANGE
AND THE ENERGY
TRANSITIONSAFE OPERATIONSAND PEOPLE
DEVELOPMENTMINIMIZINGENVIRONMENTAL
IMPACTGROWINGSOCIETAL VALUE

GOVERNANCE

DATA

Forward-looking statements
This Sustainability Report (the “Report”) may containcertain forward-looking statements with respect toAramco’s financial position, results of operations andbusiness and certain of Aramco’s plans, intentions,
expectations, assumptions, goals and beliefs andinclude all matters that are not historical fact andgenerally, but not always, may be identified by the useof words such as “believes,” “expects,” “are expected
to,” “anticipates,” “intends,” “estimates,” “should,”“strive,” “will,” “shall,” “may,” “is likely to,” “plans,”“targets,” “goals,” or similar expressions, including
variations and the negatives thereof or comparable
terminology. These statements include, among otherthings, statements about expectations in connection
with Aramco’s sustainability and environmental, socialand governance (“ESG”) initiatives, including thetargets and goals set forth in this Report.
Prospective investors should be aware that forwardlooking statements are not guarantees of future of
future performance and that Aramco’s actual
performance may differ significantly from those madein or suggested by these forward-looking statements.
Factors that could cause actual results to differ
materially from Aramco’s expectations, including ourgoals related to ESG and mitigating our environmental
impact, safe operations and people development andgrowing societal value within the Kingdom, include,
among other things, the following:• the inability to successfully meet the targets set forthin this Report, including through the management
GHG emissions; the inability to meet our plastic
waste and water management targets or successfully
protect biodiversity; the inability to develop anddeploy technology solutions to allow us to deliver
the benefits of oil and gas hydrocarbons for future
generations;• global supply, demand and price fluctuations of oil,gas and petrochemicals;• global economic market conditions;• competition in the industries in which Aramco operates;• climate change concerns, weather conditions andrelated impacts on the global demand forhydrocarbons and hydrocarbon-based products;• risks related to operating in a regulated industry andchanges to oil, gas, environmental, health, safety orother regulations that impact the industries in which
Aramco operates;• Legal proceedings, international trade matters, andother disputes or agreements; and• Other risks set forth in our 2023 Annual Reportavailable on our website.
In light of these risks, uncertainties and assumptions,the forward-looking statements described in thisReport may not occur in the manner described or may
not occur at all. These forward-looking statements
speak only as of the date of this Report. We undertakeno obligation to update or revise any forward-looking
statement, whether as a result of new information,
future events or otherwise. All subsequent written andoral forward-looking statements attributable to us or
to persons acting on our behalf are expressly qualified
in their entirety by the cautionary statements referred
to above and contained elsewhere in this Report.
Undue reliance should not be placed on the forwardlooking statements.

This document should be read together with Aramco’s public
reporting, including our Annual Report, our website, and our policies.

Investors

Annual Report 2023

Except where noted, the information covered in thisReport highlights the company’s performance andinitiatives in fiscal year 2023. The inclusion of
information in this Report should not be construed asa characterization regarding the materiality or financial
impact (or potential impact) of that information.
Sections of this Report have been prepared withreference to and guidance from various reporting
frameworks, standards and guidelines, as outlined at
the start of this Report. The Company’s application of
the various frameworks, standards and guidelines isbased on its interpretation and judgment.
This Report may contain references to links to or
information from other internet sites. Such links andinformation are not endorsements of any products orservices in such sites, are not being incorporated byreference herein, and no information in such sites has
been endorsed or approved by Aramco.

Annual Report 2023

This Annual Report covers financial
and operational aspects of Aramco.
Download our Annual Report 2022 (PDF)

This Annual Report covers
financial and operational
aspects of Aramco.
Download our Annual Report 2022 (PDF)
Access key financials Please see our 2023 Annual
Report at www.aramco.com/
en/investors/annual-report Please visit www.aramco.com
for more information• risks related to Aramco’s ability to successfully meetits ESG targets, including its failure to fully meet its
GHG emission reduction targets by 2050;• conditions affecting the transportation of products;• operational risk and hazards common in the oil andgas, refining and petrochemicals industries;• the cyclical nature of the oil and gas, refining andpetrochemicals industries;• political and social instability and unrest and actualor potential armed conflicts in the MENA region andother areas;• Aramco’s exposure to inflation, interest rate risk andforeign exchange risk;

112

ARAMCO | SUSTAINABILITY REPORT 2023

Annual Report2023

Access key financials

Contact us

We hope you find this Report engaging andinformative, and we continue to welcome yourinput and views:@

sustainability@aramco.com

 Please visit www.aramco.com/
sustainability for more
information on our approachto sustainability, our basisof preparation and our
independent assurance
statements for 2019, 2020,
2021, 2022, and 2023

Social media

We are also active on the below social media
platforms, so please follow us to learn more
about Aramco and our sustainability journey:@aramcolinkedin.com/company/aramco

ARAMCO | SUSTAINABILITY REPORT 2023

113