Saudi Aramco Sustainability Report 2021

Energy security
for a sustainable world

About this report
Our approach to sustainability reporting
In this inaugural Sustainability Report, we present
our approach to: integrating sustainability within
our corporate strategy and operations; the material
sustainability issues that impact our business; andour ambition, initiatives and performance, witha particular focus on our 2021 performanceand highlights.
This Report has been approved by the executive
management and Board of Directors of Aramco.

Reporting standards
The following sections of this Report have been
prepared with reference to and guidance from thefollowing frameworks, standards and guidelines:• Reporting guidelines for our ESG disclosures:
International Petroleum Industry Environmental
Conservation Association (IPIECA);• For developing and reporting our materiality
matrix: Global Reporting Initiative (GRI)
Sustainability Reporting Principles;• For measuring and reporting on our carbon
emissions: World Business Council for Sustainable
Development and World Resources Institute’s
Greenhouse Gas Protocols; andWhere appropriate, we will expand theboundaries against which we report as ourcontrols mature around ESG data measurementmonitoring and reporting.
Our basis of preparation on how we measure andreport on the sustainability performance metrics
undergoing external independent assurance canbe found online here.
For the avoidance of doubt, SABIC and S-Oil’s
non-financial performance data are notin scope of this Report. Both subsidiaries
are publicly listed and issue separate annual
sustainability reports.

Internal controls and data validation
All figures in this Report represent the latest
available internally validated data, unless specificallyreferenced in the narrative. Some of the totals
presented may reflect the rounding down or up
of subtotals.
Aramco’s internal reporting systems capture
and record the data used in this Report. All data
are subject to internal validation, including data
reviews by the reporting businesses and subject
matter experts.

• For developing and reporting our health andsafety performance metrics: Occupational Safety
and Health Administration (OSHA) Standards andthe American Petroleum Institute Recommended
Practices.

Independent assurance

We have applied to become a participant of the UN
Global Compact and support the 10 principles onhuman rights, labor, environment and anti-corruption.

For 2021, EY has provided assurance over our dataon the number of Fatalities, Female employees (%)
of total employees and Energy Intensity (ratio of total
net energy consumption and total production,
thousand Btu per boe), whilst KPMG has provided
assurance over our 2021 data on Scope 1 emissions(million metric tons of CO2e), Scope 2 emission(million metric tons of CO2e) and Upstream Carbon
Intensity (Ratio of total upstream GHG emissions(Scope 1 and Scope 2) to production sold,kg of CO2e/boe).

Reporting boundaries, scope and basisof preparation
This Report contains data for the full-year 2021
(January 1 — December 31). Where available,
we have compared 2021 performance with 2020
and 2019 data.
We have followed industry guidance on defining
the boundary scope for performance data. For
clarity and transparency, the specific reporting
boundaries of each KPI for 2021, 2020 and 2019
have been noted in detail on page 88.

Third-party independent assurance has beensought against six prioritized performance metrics inaccordance with the revised International Standard
on Assurance Engagements 3000 (ISAE 3000 revised).

More information on assured data and assurance
statements can be found from page 88 onwards andonline here.

Inside this report
Overview
Sustainability and our corporate strategy....................02
Chairman’s message...................................................... 06
President and CEO’s statement.....................................082021 sustainability performance...................................10

Climate change andthe energy transition

Aramco’s operations.......................................................12
Our sustainability journey..............................................14
Sustainability framework and governance..................16
Materiality........................................................................18

Safe operations andpeople development

page 20

page 48Growing societal value

Minimizing
environmental
impactpage 76

page 62

Data
Key performance indicators......................................... 88
Abbreviations, terms and glossary...............................94

Saudi Aramco Sustainability Report 2021

Forward-looking statements...................................... 100

01

Sustainability and our corporate strategy

Positioning Aramco
for the future
The Company’s strategy is driven by
our belief that the world’s need foraffordable, reliable and sustainably
produced energy will continue togrow, and that a broad mix ofenergy solutions will be required
to meet this demand, including oil
and gas.

02

Positioning Aramco for the future
As events in early 2022 have shown, a smooth energy
transition is dependent on energy security, and until
such a time as alternative low-carbon sources ofenergy are able to shoulder the burden of energy
demand, global energy security will continue to be
dependent upon a reliable supply of fossil fuels.
Even under the most aggressive climate models,demand for hydrocarbons, though declining, willcontinue to play an important role in the energy
mix for many years to come. And at a more granularlevel it is clear that the energy transition is moving
at a different pace across different markets. In
many growing markets there will be a need forhydrocarbons well beyond 2050.

Saudi Aramco Sustainability Report 2021

Overview

Climate change
and the energy
transition

Safe operations
and people
development

Aramco has demonstrated its ability to producehydrocarbons at low cost and with one of thelowest carbon intensity footprints. This positions
us to have a critical role to play in meeting theneed for affordable energy whilst responding
to the climate challenge.
Our vision is to be the world’s pre-eminent
integrated energy and chemicals company,
operating in a safe, sustainable and reliable manner.
The global reach and diversification of Aramco
uniquely advantages us to meet the world’s
energy needs, whilst both bringing one of thelowest carbon intensity hydrocarbons to market
and investing in new energies.

Minimizing
environmental
impactGrowingsocietal value

Data

To achieve this, we will grow the business, increasing
production and delivering energy and petrochemicalmaterials to support economic and social growth,
while leveraging technology and innovation to lower
emissions and reduce our climate impact.
Aramco recognizes the need to maintain its position
as a leader in upstream carbon intensity, with one of
the lowest carbon footprints per unit of hydrocarbons
produced and ultimately decarbonize our own
operations by 2050. This is an important part of our
focus on long-term shareholder value creation.
Our commitment to this goal was reinforced in
October 2021, with the announcement of ourambition to achieve net-zero Scope 1 and Scope 2
greenhouse gas emissions across wholly-owned
operated assets by 2050. This complements theKingdom of Saudi Arabia’s aim to reach net-zeroemissions by 2060, announced as part of the Saudi
Green Initiative (SGI).
The corporate strategy is built around four strategic
themes:

Upstream pre-eminence
Downstream integration
Low carbon

Localization and national champions
We recognize that a successful energy transition will
require collaboration with a wide-range of businessand technology partners to be able to develop thetechnical solutions needed. Our track record ofinnovation and technology development positions
us well to leverage technology to support our four
strategic themes.
Scenario planning has been used to inform thedevelopment of these and stress-test the resilience ofthe corporate strategy and investment plan against arange of possible futures (see the “Energy transition
Scenarios”, pages 24-25).

Saudi Aramco Sustainability Report 2021

03

Sustainability and our corporate strategy continued

Corporate strategy
Upstream pre-eminence
At the core of our upstream business lies a
commitment to be a responsible custodianof Saudi Arabia’s vast energy resources. Our
many decades of careful long-term reservoir
management have required balancing production
between maturing areas and newer production
sources, tapping into new reservoirs whenrequired to optimize the depletion rate of fields,
and repeatedly raising targets for ultimate
recovery of hydrocarbons.
Deployment of advanced sub-surface technologies
that reduce energy consumption have led toindustry-leading positions and practices in costand efficiency, supporting the Company’s aim ofpreserving our low upstream carbon intensity. This
depth of knowledge of our geology positions us
strongly to develop carbon capture opportunities.

Aramco plans to expand our gas business,
including accelerated development of ourunconventional gas resources. This gas is expected
meet a growing domestic demand for low-cost,cleaner energy, and is expected to contribute tolower greenhouse gas emissions in domestic
power generation supporting the Kingdom's
Nationally Determined Contributions by displacing
the use of higher emitting liquids.
We are also looking to monetize part of thisgrowing domestic gas production through the
production of blue hydrogen and ammonia.
We believe hydrogen will play a significant rolein providing low-carbon energy.

Downstream integration
The Company has a dedicated system of domestic
and international refineries and chemical plants.
Continued strategic integration across thesefacilities, together with investments in marketingand lubricants, enables us to capture additional
value along the hydrocarbon chain.

Changing patterns of demand, including growthin chemicals demand and the long-term risk ofdecline in fuels demand, are driving us to direct
more oil into chemicals through highly-integrated
liquids-to-chemicals facilities.

Leveraging technology
Aramco’s technology program continues
to develop new solutions for our Upstream
and Downstream businesses, and to help indiversifying our product portfolio and growing
the business sustainably. An increasing shareof investment in technology and research anddevelopment addresses sustainability challenges.

This requires large-scale deployment of existing
solutions, such as renewable energy and carbon
capture, utilization, and storage, and the creation
and advancement of new low-carbon solutions thathave both environmental and commercial potential.
Examples of the new solutions that Aramco believes
will positively impact its business sustainability, andwhich are being actively pursued, include:• Directly converting liquids-to-chemicals;• Producing hydrogen carbon capture,utilization, and storage;• Expanding nonmetallic applications;04

Saudi Aramco Sustainability Report 2021

Overview

Climate change
and the energy
transition

Safe operations
and people
development

Minimizing
environmental
impactGrowingsocietal value

Data

Low carbon
The Company aims to de-risk our businessportfolio and maintain competitiveness anddifferentiation under carbon-constrained
scenarios. There are two main dimensions toachieving this: lowering the net carbon emissionsof our operations, and developing low-carbon
products and solutions across energy, chemicals
and materials.
Lowering the Company’s operational carbon
emissions leverages measures that span energy
efficiency gains, renewable power, carbon
capture, utilization, and storage, and offset
initiatives.

Developing low-carbon products and solutions
helps to sustain and diversify demand for oil andgas through competitive technologies. These
include blue hydrogen and ammonia, low-carbon
fuels, and gas to complement renewables in thedomestic energy mix and to reduce liquidsburning in power generation. These initiatives
will help the Company capture opportunities
in a growing market for low-carbon products
and solutions.

Localization and national champions
In addition to our core businesses, we are seeking
to foster new businesses that will localize theCompany’s supply chain and promoting national
champions in the Kingdom of Saudi Arabia. This
helps increase the long-term cost and productivity
leadership, competitiveness and resilience of ourdomestic value chains, as well as contributing to
the Kingdom’s economic development.

• Accelerating large-scale deployment of carbon
capture, utilization, and storage;• Enabling sustainable transport through more
efficient engines and low-carbon fuels; and• Accelerating technology-based offsetting solutions
such as direct air capture.
We believe that the span, concentration andintegration of our operations position us well todevelop, test and deploy new technologies suchas carbon capture, utilization, and storage (CCUS)
at speed and scale.

Saudi Aramco Sustainability Report 2021

In March 2021, the Government of Saudi Arabia
announced the Shareek program. Shareek offers
a framework to accelerate investments alignedwith our strategy and is relevant for our plansfor domestic liquids-to-chemicals, blue hydrogenand ammonia. In September 2021, the Company
announced a major expansion of its industrial
investment program, Aramco Namaat, that willleverage a range of incentives offered by Shareek.

We are a large investor in technology and one of
the leading authors of patents in the oil and gas
industry. Application of such technology can provide
sustainable competitive advantage in core and new
businesses and add commercial value by creating
or extending future markets for oil, such as crude
oil-to-chemicals, crude oil to hydrogen andnonmetallic materials. Technology will also beessential for delivering emissions reductions at thescale needed. Our goal is to deploy technologies atscale and with a high degree of integration acrossour value chain. Due to the size of our business, evensmall advances can have globally significant impacts.

05

Chairman’s message

A unique position withunique responsibilities
Aramco occupies a unique position in the global
energy industry. We are the world’s largest exporterof crude oil, and we have the lowest upstream
carbon intensity of any major producer. We areproudly Saudi and committed to developing theKingdom’s vast economic and human potential,
but our outlook and ambitions are global. We
combine disciplined day-to-day performance witha generations-spanning view of the future, bornof our role as careful stewards of the Kingdom’s
immense energy resources.
This unique position means we have a unique
responsibility: to the communities in which we
operate, the customers who rely on us, and theshareholders we serve.

Long-term thinking
The COVID-19 pandemic has underlined theimportance of long-term thinking. Now, morethan ever, people want companies like ours to planahead, to be transparent about risk, and to have thecourage and foresight to tackle emerging problems
long before they become existential crises. That, forus, is the meaning of sustainability. It’s the steps weare taking today, across our business, to ensure thatAramco can thrive and create value for all of our
stakeholders long into the future.

Reducing emissions from energy
production and use, while at thesame time satisfying the world’s
growing energy requirements, isthe biggest dual challenge facing
our industry.”06

Our first sustainability report
This Report — the first of its kind in our company’s
history — sets out the actions we are taking and thestandards against which our performance may be
judged. A significant part of this work concerns
climate change because this is the biggest long-term
challenge that Aramco, or indeed any business,
faces. So, let me state the Company’s position
unequivocally on this issue. Climate change is aserious risk to humanity’s future and restoring theworld to a better carbon balance requires us toreduce the greenhouse gas emissions associated withboth oil and gas production and use. We are alreadyan industry leader in minimizing emissions at the
point of production. To strengthen that position we
have set our ambition to achieve net-zero Scope 1
and Scope 2 greenhouse gas emissions across ourwholly-owned operated assets by 2050. But we
recognize that as long as demand for oil and gas
exists, emissions also have to be tackled at the pointof combustion too. We cannot do this alone —no one company can — but we are committed toworking towards a lower-emissions future withour customers and partners around the world.

Saudi Aramco Sustainability Report 2021

Overview

Climate change
and the energy
transition

Safe operations
and people
development

Moving at the speed of science
Technology will be vital to this endeavour, and thisReport outlines how our global research network
is moving at the speed of science to drive progress
everything from cleaner fuels to low-carbonhydrogen to carbon capture, utilization and storage.
We are clear that we intend to be a leading player
in these new markets and transition technologies.
The Report also highlights how we plan to use moreof our primary product to make the petrochemicals
that are the building blocks of modern life.
Advanced plastics for instance, are created fromcarbon molecules, yet can serve as a lower-carbon
alternative to traditional materials like steel andglass. They also happen to be crucial elements inthe fabrication of renewable energy infrastructure.
This circular carbon economy approach, championed
by Saudi Arabia and endorsed by the G20, is part ofa broader shift away from a linear economy basedon “make, take, and throw away” to an economy
designed around reducing waste and reusing andrecycling finite materials. In the case of carbon, we
can add a fourth ‘R’: removing it from the cycle
altogether through carbon capture and storage.
Sustainability is not only about climate and theenvironment however. Our responsibilities also
encompass the communities in which we operate,
the markets we supply, the many thousands ofcontractors who form our global supply chain,and of course our 68,000 employees: the men
and women who work day-in, day-out to keep theworld supplied with affordable, reliable energy.

Citizenship — a core value
In this Report, you will also read about the many
ways in which we are enacting our core values ofcitizenship, accountability, safety, excellence, andintegrity. This includes our work to foster a safe,
inclusive and rewarding workplace, our support
for education and skills, and our programs tolocalize supply chains and create skilled jobs
in our communities.

Saudi Aramco Sustainability Report 2021

Minimizing
environmental
impactGrowingsocietal value

Data

Committed to a stable and inclusive
energy transition
As a signatory to the Paris Agreement, Saudi Arabia
is committed to a stable and inclusive energy
transition that meets the needs of a growing global
population. And work is well underway. The
Kingdom’s Saudi Green Initiative and the Kingdomled Middle East Green Initiative — two massive
programs of reforestation and clean energy
deployment — have the potential to transform ourregion, while Saudi Arabia’s historic commitment to
net-zero by 2060 is guiding work at the national
level. Aramco’s own sustainability plan complements
these ambitious goals, and we intend to play our fullpart in helping the Kingdom deliver on them.
For their tireless leadership on this agenda, I wish
to take this opportunity to thank The Custodian of
the Two Holy Mosques, King Salman bin Abdulaziz
Al-Saud, and His Royal Highness Prince Mohammedbin Salman bin Abdulaziz Al-Saud, Crown Prince,
Deputy Prime Minister and Minister of Defense of
the Kingdom of Saudi Arabia.
As a company, we have always taken a long-termview of the future. We have made thesecommitments and established this reporting process
because we intend to be in business — responsibly
producing energy and creating value for ourshareholders — for a great many decades to come.
I hope you will join us on this journey.
Sincerely,

His Excellency Yasir O. Al-Rumayyan
Chairman of the Board of Directors

07

President and CEO’s statement

Opportunity rests on ourability to operate sustainably
As a second generation Aramcon — the son ofa man who, like me, spent his career with thisCompany — I hold a natural appreciation for how
Aramco’s success is not measured in quarters orbusiness cycles, but across generations. While thisis a source of tremendous, unique, and enduring
strength, it is also a constant reminder of ourcapacity to make a difference to the world, andour responsibility to do so.
I am deeply conscious that the global energy
system is at an inflection point, with potentially direconsequences for the world if the global community
fails to take the right approach backed by action thatmatters. Of particular concern to our industry is thechronic underinvestment in oil and gas production inrecent years which has created a supply shortfall. If
left unchecked, this could create energy insecurity,
rampant inflation, and social unrest. The Ukraine
crisis has exacerbated the challenge, while
underscoring the extent to which renewable
alternatives are nowhere near ready to bridge
the gap.
The situation is unsustainable. To effectively address
climate change, a new way of thinking is needed.
This starts with acknowledging three facts.

As one of the world’s leading
integrated energy and chemicals
companies, our scale is truly
unique, as is our capacity tomake a difference to the world.”

Fact 1: even in the most aggressive climate models— some of which we discuss in this Report — thereality is that hydrocarbons will continue to play avital role in the global energy system for the next
several decades.
Fact 2: the future is unevenly distributed. In somemarkets there will still be a need for hydrocarbons
beyond 2050.
Fact 3: when it comes to oil and gas, the future now
clearly belongs to the lowest cost, least-carbon
intensive producers.
We intend to be one of those producers. This Reportsets out how.

Significant advantages
As a company, we have significant advantages:
a world-class operation that combines upstream
low-carbon intensity, near zero methane emissions
and gas flaring, and a relatively low cost of
production. This is all underpinned by a 90-yeartrack record of reliability and resilience. We
are extremely proud that even in times ofmarket dislocation and volatility — even when
our own operations were attacked — we havenever missed a single customer shipment for
operational reasons.

08

Saudi Aramco Sustainability Report 2021

Overview

Climate change
and the energy
transition

Safe operations
and people
development

It is a fine legacy. Indeed, I like to remind people
that Aramco was born in the face of challenge.
A century ago, as oil was replacing coal as the fuelof choice for development and progress, we foundopportunity in delivering energy safely and reliably
to the world. Our Company’s strength was forgedfrom a unity of purpose and an unrelenting
determination to succeed.
But looking ahead, our greatest opportunities now
hinge on our ability to operate sustainably. Thismeans ensuring the sustainability of our business,the environment in which we operate and where
our products are used, and helping of the societiesthat are touched by Aramco to grow and prosper.
It’s a tall order. We don’t have all the answers and
we don’t have all the technologies in place. No one
does. But we’re working hard at it, as you’ll see inthe following pages.
In our inaugural Sustainability Report, we provide
greater detail around the ambition we set out toachieve net-zero Scope 1 and Scope 2 greenhousegas emissions across our wholly-owned operated
assets by 2050, as well as the work and planning
we are doing to further protect and enhance lives,
progress society’s development, and reduce ourenvironmental footprint.

Four impact areas
We have identified four impact areas where webelieve we can make the most difference:
To more effectively combat climate change andplay our part in a successful energy transition, we areembracing energy efficiency and increasing use ofrenewable energy for our operations, while advancing
the science of carbon capture, including both naturaland technology-led solutions. We are also working
with international partners to develop moresustainable engines and fuels, and playing a leadingrole in growing the emerging hydrogen economy.
To improve safety and well-being, we are working
to make a positive impact on local, national, andglobal communities in a number of ways, fromproviding world-class skills and training, tobecoming the number one choice in the Kingdom
for Saudi female talent.

Minimizing
environmental
impactGrowingsocietal value

Data

To minimize the environmental impact of ourbusiness, we are not only working to limit ourenvironmental footprint, but to create a legacy of
projects that improve both natural habitats andshared resources, while incorporating circular
economy principles across our business activities.
To grow social value and our value chain, we aredeveloping a diverse, sustainable and globallycompetitive energy sector in Saudi Arabia andbeyond, while adding robustness and efficiency to
our in-Kingdom total value add (iktva) supply chain
efficiency program, striving to increase job creationand the amount of goods and services we procure
from within the Kingdom to 70%.

Vision 2030 and UN SDGs
In the following pages, you will also read how ouractivities align with and support various aspects ofboth the United Nations’ Sustainable Development
Goals (UN SDG) and the Kingdom’s Vision 2030. The
support of and collaboration with the Government,
particularly the Ministry of Energy, is valuable andcritical to our success in doing this.
What is more difficult to capture in a report like thisis the resolve I see in the men and women of Aramco
who are working day-in and day-out to leverage thetalent, technology, and resources of our Company tomake a positive difference to the world we all live in.
But, through this process, we hope to capture thatinspirational resolve in our actions with ever greatertransparency, accountability, and responsibility,
and relentless action that play a major role indetermining the future of our planet and thegenerations to follow.
These are the standards by which our performance
will be measured, and working together, I am
determined that we will be judged a success.
Sincerely,

Amin H. Nasser
President & CEO

Despite improvements to our safety performance,
I am deeply saddened by the loss of one life at oneof our sites during the year. It is unacceptable thatany person loses their life as a result of a workrelated incident. We continue our efforts toeliminate fatalities and reduce injuries as far as
possible across our business.

Saudi Aramco Sustainability Report 2021

09

2021 sustainability performance

Our performance in 2021
Climate change andthe energy transition

For more details
see page 20

We provide reliable energy to the world
while maintaining leadership as one of
the lowest cost and lowest carbon intensity
producers of hydrocarbons, supporting theKingdom's and our customers' transition toa lower carbon future.

Scope 1

Scope 2

Upstreamcarbonintensity1

MMtCO2e

MMtCO2ekg CO2e/boe

52.3 15.5 10.7
1

1Growing societal
value• Ambition to achieve
net-zero Scope 1 and Scope
2 greenhouse gas emissions
by 2050 from wholly-owned
operated assets• Zero routine flaring program• Flaring intensity in 2021:
5.51 scf/boe• Upstream methane intensity
in 2021: 0.05%• Aiming for near zeromethane emissions by 2030
• Leveraging technology tosignificantly lower emissions• 12 GW of renewable energy
by 2030

For more details
see page 76

We invest in the Kingdom’s domestic oil andgas ecosystem to enhance the reliability of our
supply chain and optimize operational costs
and inventories, providing employment andeconomic opportunities to thousands ofSaudi nationals.

• Long-standing commitment
to create employment
opportunities for Saudi
Arabian nationals• Stimulated billions ofdollars in national
economic activity• Established National
Champions organization

59.0 90.5 29.0
1.

10

Iktva spend

Saudization% (in-Kingdom)%• Iktva localization program
has attracted more than 540
investments to Saudi Arabia

In-Kingdom Capex • Social investment of overBillion USD

USD 360 million in a rangeof community initiatives
in 2021

This figure has undergone external limited assurance in accordance to the ISAE 3000 (revised) by KPMG. The assurance report can be found online here.

Saudi Aramco Sustainability Report 2021

Overview

Climate change
and the energy
transition

Safe operations
and people
development

For more details
see page 48• Proactive approach toincident prevention• Females were 31% of all our
direct hires• 24% increase (versus 2020)in female employees inleadership positions• More employees living withdisabilities were hired in
2021 than the past three
years combined• Continuous and effective
COVID-19 support withvaccinations made available
to all employees

For more details
see page 62• Incorporating circular
economy principles• Ambition to deliver net
positive biodiversity impact• Investments in tail gas
treatment facilities

Minimizing
environmental
impactGrowingsocietal value

Data

Safe operations andpeople development
Safety is a core value of Aramco and an
integral part of Aramco’s culture. We arecommitted to providing a safe and respectful
working environment for all with theappropriate safety procedures, policies andresources in place on-site and within thecommunity. And we are committed tosupporting and empowering our workforce.

Tier 1 Process
Safety Events

Fatalities2

Femaleemployees2

NumberNumber

%

11

1

5.6

Minimizing environmental
impactWe strive to conserve natural resources andminimize the negative impact of our businessactivities on the environment. We aspire to not
only limit our environmental footprint, but tohave a legacy of projects that improve bothnatural habitats and shared resources.

• Implementing a sustainable
plastic waste management
model• Comprehensive water
conservation• Using alternative sources ofwater such as seawater andtreated sewage effluent tosupport our operations

2.

Freshwater
consumption

Hydrocarbon
spillsMangroves(planted in
Saudi Arabia)

MMm3

NumberMillion33.8 13

7

This figure has undergone external limited assurance in accordance to the ISAE 3000 (revised) by EY. The assurance report can be found online here.

Saudi Aramco Sustainability Report 2021

11

Aramco’s operations

Global operations
Americas

Argentina, Brazil, Canada,
MexicoUnited States of America

Countries of operation
Aramco headquarters
Subsidiary* offices
Crude oil and natural gas production facilities
Refining, petrochemical and manufacturing facilities
Terminals and distribution hubs
Aramco retail fuels network
Technology and innovation centers*

Subsidiaries are separate legal entities from the Company.

TuraifSafaniya
Tanajib
ManifaJawf
Tabuk

Khursaniyah
Wasit

Fadhili
JubailMidyanBerri

Ju'aymah
Ras Tanura
Qatif
SaihatDammamAramco headquarters, Dhahran
KhobarDuba

AbqaiqMedinaShedgum

Qasim

al-Hasa
Se’ed'Uthmaniyah

KhuraisYanbu'SABIC headquarters
RiyadhHawiyahRabighThuwalHaradhShaybahJiddahSulayyil

Abha
NajranJazan

12

Saudi Aramco Sustainability Report 2021

Overview

Climate change
and the energy
transition

Safe operations
and people
development

Growingsocietal value

Minimizing
environmental
impactData

EuropeArmenia, Azerbaijan,
Czech Republic, Finland,
Georgia, Hungary, Portugal
Estonia
Austria
Denmark, Greece, Poland, Sweden
RussiaBelgium, Germany, Italy, Turkey
FranceNetherlands, Spain,
United Kingdom

Middle East and Africa
BahrainEgypt, Ethiopia, Iraq,
Jordan, Kenya, Tunisia
Morocco, South Africa,
United Arab Emirates
Saudi Arabia

Asia and Australia
Australia, Indonesia,
Pakistan, Philippines
Vietnam
Malaysia, Singapore, Thailand
India
China, Japan, South Korea

Saudi Aramco Sustainability Report 2021

13

Our sustainability journey

Building onstrong foundations

The birth of
Arabian oil

1933-1944

Expansion

1945-1965

Making a namefor ourselves

1966-19881933

 he beginning: unlocking theT
Kingdom’s vast oil resources withthe original concession1946 eveloping local supply chains:D
providing technical and financial
assistance to Saudi entrepreneurs

1970sConnecting communities: bringing
electricity to remote areas of theKingdom via a unified power grid

1934

Recruiting locals: hiring our first
Saudi nationals to build a pier toenable oil exports by sea

1949

I n-house training: investingin on-the-job technical andadministrative training

1975

1940

 eyond employment: providingBadditional educational
opportunities for Saudis

1950s uilding leaders: offeringBscholarships to study in the
US to top-performing Saudis

Reducing flaring and emissions:launching our Master Gas Systemand capturing millions of scf ofassociated gas that would
otherwise have been flared1977

 oosting agriculture: surveying
Bland and drilling wells to provide
valuable water for farmers

1960sFemale education: building
elementary schools for girls
in the Eastern Province

Biological baseline: publishinga comprehensive five-year
environmental study

1978

Public health: helping local
communities eradicate malaria

1963

I ndustry knowledge: helping
build the King Fahd University ofPetroleum and Mineral Resourcesin Dhahran

Groundwater protection:
establishing the Qurayyah
Sea Water Plant to support
our operations

1980s

Emissions reduction: pioneering
installation of a modified safety
flare system in Abqaiq

1941

1943

The Company’s first environmental
protection plan
1964

Water conservation: Riyadh
Refinery started using treatedmunicipal wastewater

 irst female professional: hiringF
the first Saudi female university
graduate Najat Al-Husseini
1980s

14

Saudi ownership: 100% owned by
the Saudi Arabian Government

Saudi Aramco Sustainability Report 2021

Overview

Climate change
and the energy
transition

A global Company

1989-20141990s

 leaner fuels: halved the leadC
content of produced gasoline,
and ceased production of leaded
gasoline (by the end of 2001)

1991

Protecting ecosystems: responding
swiftly to Gulf War oil spills

1993

Mangrove restoration: first of
millions of mangrove trees planted

2001

2006

 ecycling and reuse: devisingR
innovative applications for
Aramco’s wastewater lare minimization system: newFsystem driving industry leading
flare reduction

2012

Carbon capture at scale: initiationof CO2 Enhanced Oil Recovery
demonstration project with acapture capacity of 800,000 tons
per annumIndustry partnership: founding
member of the Oil and Gas
Climate Initiative

Saudi Aramco Sustainability Report 2021

Minimizing
environmental
impactTransformation
and resilience

2015-20202015

Nurturing biodiversity: first batchof artificial reefs
Domestic value creation: launchof iktva

Growingsocietal value

Data

Sustainability andenergy security

2021
2021

Net-zero: announced our ambition
to achieve net-zero Scope 1 andScope 2 greenhouse gas emissions
from our wholly owned operated
assets2016

S haybah Wildlife Sanctuary:inauguration and thereintroduction of oryx and gazelleGas development: commenced thedevelopment of the vast Jafurahgas field

2017

Using alternatives: installing theKingdom’s first wind turbine

Investing in solar: invested in the
1.5 GW Sudair Solar PV project2018

 ultural enrichment: opening ofC
Ithra — the King Abdulaziz Center
for World Culture

Net-positive biodiversity:
announced ambition to delivera net-positive impact, building
on our work in over 750 km2 ofprotected areas

Knowledge base: building theKing Abdullah University of
Science & Technology

2009

2014

Safe operations
and people
development

Transparency: first independentcertification of reserves
2019

Cleaner alternatives: inaugurating
Saudi Arabia’s first hydrogenfueling station

Driving economic development:
launch of National Champions
programCommitments: joined World Bank
'Zero Routine Flaring by 2030'
initiative
Initial Public Offering: listingon the Saudi Stock Exchange,
the Tadawul
2020

World first: shipping blue
ammonia to Japan15

Sustainability framework and governanceOur sustainability
framework

Our sustainability framework is helping us plan for
the future and navigate the route ahead. It has beencreated in the context of where we are as a business
today and the global concerns we intend to address.
It sets out the focus areas that hold the greatest
potential for long-term positive impact.

n's Sustainable Developmen

Saud

R

wa b
e ne

t Go
als

i Arabia's Vision 2030

le e n erg y

At trac t
in gt al e n t

rcu
e c l aron

Ci

See page 48

e
r th
g fo
Investin ermtlo n g -How weworktior
pp m pSu a nd te ren

Growingsocietalvalue

Minimizing
environmental
impactSee page 76

See page 62

Re

Alternati vehydrog energenya m mo a nd :ni a

See page 20

n
ed g sm
ris ium all
es

Em

pow
e
s o c i rin g
et y

16

ng ther s if y i
Dive onomy
ec

Safe operations
and people
developmentgc in e n t
du y mR e p loem

Climate change
and the energy
transition

un

on
rb
ca y
om

I nc
re
par wom asinticthe ipa en g
wo tio 's
rk n ifo n
rce

Wma n a s t e
ag ement

Natiodp o u c inllu g ati o i r
n

te d
Uni

Our position of strength and our approachfor making this contribution are laid out inour sustainability framework and aligns with
the Kingdom’s own aspirations encapsulated
in the Saudi Green Initiative and its Vision 2030.

ti n gC o m b a ti o ncad e s e r ti f igv ine r lif esee
P r ri nma

Saudi Aramco Sustainability Report 2021

Overview

Climate change
and the energy
transition

Safe operations
and people
development

Minimizing
environmental
impactGrowingsocietal value

Sustainability governance

Data

Sustainability Steering Committee

We have implemented a governance model forsustainability that strives to align sustainability
aspirations with our corporate business strategy
and goals. This involves the Board of Saudi Aramcoand its Committees, our Management Committee,
and the teams and individuals who work across
our operations.

The SSC reports to both the Strategy Council andManagement Committee. It is led by the senior vicepresident for Technical Services and is comprisedof Company vice presidents representing our key
Business Lines and Administrative Areas.
The SSC is responsible for identifying sustainability
issues and their impact on long-term value creation
for the business and our stakeholders. It informs
how sustainability impacts corporate strategy andinvestment decisions, and provides a platform for
management of cross-business issues.

Overall accountability for sustainability within
Aramco lies with the Chief Executive Officer andthe Management Committee. They are supportedby the Sustainability, Risk, Health, Safety andEnvironment Committee (SR&HSE) and theSustainability Steering Committee (SSC).

Sustainability, Risk and HSE Committee
The Sustainability, Risk and HSE Committee
provides oversight and review and advises on oursustainability, risk and HSE policies and practices toensure that these are discussed, understood, owned
and promoted at Board level. This includes advisingon the Company’s response to climate change.

Specifically for climate change: the SSC reviews
and advises management on the corporate risk
assessment, climate strategy, decarbonization plans
and investment levers. The Management Committee
approves these plans for review by the Board.

Sustainability governance management framework

Sustainability, Risk and HSE Committee

HSSE
Committee

StrategyCouncilManagement
Committee

Board of Directors

President and CEO

Sustainability
Steering Committee

Finance, Strategy& Development

SSC
Secretariat

Strategy

ESG Strategy &Reporting Dept.

Saudi Aramco Sustainability Report 2021

17

Materiality

Mapping ourmaterial ESG issues

In preparing this Report, we consider which topics
our stakeholders identify as material ESG issues1
in our strategy, in our operations, through our
key performance indicators (KPIs), and in our
public reporting.
In 2020, we conducted focused “materiality
assessments” in partnership with a numberof independent external consultancies andstakeholders. This included a review of a rangeof reporting standards including the UN SDGs andthe IPIECA guidelines. In addition to this exercise,
we monitor internal and external stakeholders tounderstand what is important to them.
From our benchmarking, research, and internal
engagement, we identified and evaluated over
150 topics across the areas of Environment, Social,and Governance. The outcomes of these assessments
were tested with external and internal stakeholders,in over 25 separate engagements. The goal was toevaluate the relative importance of multiple topics
to our key stakeholders — as well as their respective
impacts on our business and stakeholders. From this,13 material issues were highlighted, and wereallocated under four focus areas:

Focus area and relevant UN SDGs

Material issues

Climate change
and the energy
transition

1.	Climate change(including GHG
emissions)

Impact on
our business

For more details
see page 20

Safe operations
and people
development

2.	Process safety
and asset
integrity
3.	Workforce
protection
4a. Labor practices
5.	Ethics, bribery
and corruption(compliance)

For more details
see page 48

6a. Human rights2• Climate change and the energy transition;• Safe operations and people development;• Minimizing environmental impact; and• Growing societal value.
Prioritizing issues enables us to focus on where wecan make the biggest difference. This wide-ranging
review included peer benchmarking and detailed
analysis of stakeholders’ requirements, perceptions,and expectations of Aramco.
Whilst we contribute directly or indirectly to all
17 UN SDGs, we identify 10 UN SDGs which we feelare most relevant to our operations, our products
and our business and this is what we present in theadjacent materiality matrix table.

Minimizing
environmental
impact7.	Biodiversity andecosystems2
8. Water
9.	Wastemanagement
10. Local
environmental
impactFor more details
see page 62

Growing societal
value

4b. Labor practices
6b. Human rights2
11. Communityand society
12. Economic
contribution

For more details
see page 76

18

1.

The concept of “materiality” refers to the guidance on externalreporting from the Global Reporting Initiative, and does notnecessarily correspond to the concept of materiality used inconnection with Aramco’s financial reports.

2.

Human rights and biodiversity are material issues that have abroad relationship with various KPIs and have a strong impact on
our day-to-day business and operations, thus we are applying
a deliberately phased approach to ensure the quality and integrityof our data capture and target-setting processes, therefore for 2021,
there are no publicly reported KPIs for these two material issues.

13. National content

Impact on our business
Very highHigh

Moderate
Saudi Aramco Sustainability Report 2021

Overview

Climate change
and the energy
transition

Safe operations
and people
development

Relevant metric to monitor performance against
each material issue

Minimizing
environmental
impactGrowingsocietal value

Data

Contribution to UN SDGs

1.
1.
1.
1.
1.

Energy intensity (thousand Btu per boe) – pg 36.
Scope 1 emissions (million metric tons CO2e) – pg 32.
Scope 2 emissions (million metric tons CO2e) – pg 32.
Upstream carbon intensity (kg of CO2e/boe) – pg 33.
Upstream methane emissions (metric tons CO2e) –pg 89.
1. Upstream methane intensity (%) – pg 35.
1. Flared gas (mmscf) – pg 34.
1. Flaring intensity (scf/boe) – pg 34.

• SDG7: Investing more than 12 GW in alternative energy by 2035, and expand CO2
storage capacity to support clean and affordable energy production.
• SDG8: Given the material impact climate change can have on human life and economic
opportunities, as Aramco continuously invests in lower carbon energy and alternative
energy sources, this will create jobs and contribute to economic growth.
• SDG13: Being one of the world’s lowest upstream carbon intensity major producers in
the world and in line with the Kingdom of Saudi Arabia’s Vision 2030 toward cleaner
energy, having an ambition to reach net-zero emissions by 2050 from wholly-owned
operated assets, and also leveraging our influence in non-operated assets, within thetimeframe set by the Paris Agreement.
• SDG15: Committed to delivering Biodiversity Net gain (in-Kingdom) in support of
the SDG15, 2030 Vision and the Saudi Green Initiative.

2. Number of Tier 1 process safety events – pg 50.
3. Number of fatalities – pg 50.
3.	Lost time incident (LTI) rate – pg 50.
3.	Total recordable case (TRC) frequency – pg 50.
4a. Female (%) of total employees – pg 57.
4a. E
 mployees (% of total employees) receiving regular
Performance Reviews – pg 90.
4a. Female employees (%) in leadership position – pg 57.
4a. Number of graduates – pg 58.
4a. Number of apprentices – pg 58.
4a. Number of interns – pg 58.
5. Number of allegations – pg 55.

• SDG3: Aramco has various H&S and well-being initiatives for our employees (mental
health initiatives, and uses technology to minimize exposing our workers to
unnecessary risk). In 2021 the Company launched the Work Life Support program
as a response to COVID 19.
• SDG5: Aramco is improving the gender balance of our workforce via a range of female
empowerment initiatives. For our community, Aramco funds the STEMania program forschool-age girls, offering university scholarships for science, technology, engineeringand mathematical degrees.
• SDG8: Supporting economic development of our employees and communities where
we operate via various home ownership 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).
• SDG8: We have strong policies and processes to manage our ethics, bribery andcorruption risks to ensure a decent working environment for our workforce.
• SDG9: We seek to develop, innovate and invest wherever we operate — our 2021
payment to Saudi Arabian Government was 557,033 (SAR millions).

8. Freshwater consumption/withdrawal (million m3) – pg 69.
8. Hydrocarbon content discharged to water (HC2W) (barrels)– pg 70.
9. Industrial waste generated (metric tons) – pg 66.
10. SOx emissions (kilo tons) – pg 65.
10. Number of hydrocarbon spills – pg 71.
10. Volume of hydrocarbon spills (barrels) – pg 71.

• SDG6: Given water scarcity in KSA, the Company has a large seawater treatment
and injection network of facilities. Seawater is used as the primary source of waterfor oil production and to ensure clean water is available for our workforce andlocal communities.
• SDG12: Embracing circular economy (reduce, reuse and recycle) principles and businessmodels across our operations and activities.
• SDG14: Aramco has systems in place to manage all discharged water to the sea,
meeting Government requirements by investing in maintenance and monitoring
systems while proactively managing operations to avoid hydrocarbon leaks andspills by maintaining asset integrity throughout their life cycle.
• SDG15: See above.

4b. Saudization (%) – pg 78.
11. Social investment (SAR) – pg 84.
12. Payments to Government (USD) – pg 86.
12. Total R&D expenses (USD) – pg 44.
12. Direct economic value generated and distributed(SAR) – pg 92.
13. Iktva score (%) – pg 79.
13. Saudization of service contracts (%) – pg 79.
13. Saudization of construction contracts (%) – pg 79.

• SDG3: See above.
• SDG8: Our iktva program where we have built local businesses’ capacity and capability,
the Aramco Namaat Investment Acceleration program and our National Champions
program. Globally, spending in various socio-economic programs.
• SDG9:– Industry: creating a world-class supply chain to serve the needs of the Company andits partners, facilitating the development of a diverse, sustainable, and a globallycompetitive energy sector in the Kingdom.
– Infrastructure: The Kingdom’s Master Gas System delivers natural gas to industry
across Saudi Arabia; while, we’ve built various roads, education facilities, cultural
centers (e.g. Ithra) and numerous other facilities across the Kingdom.
– Innovation: At the heart of our business lies a commitment to innovate and maximize
production from our resources, to deliver energy as efficiently as possible from thewellhead to customers.
• SDG12: See above.

Saudi Aramco Sustainability Report 2021

19

Climate change
and the energy
transition
The world’s population is predicted to reach
9.7 billion by 20501 and communities across theglobe are seeking economic growth and a better
quality of life, which is driving underlying demandfor energy and materials.
At the same time, the impacts of climate change on
ecosystems, economies, societies and businesses
are already clear and are predicted to increase.
As an energy company, our role is critical tobalancing these two aims. As the world’s largest
integrated energy and chemicals company, we
have the ability to lead and shape the response.

1.

20

UN Department of Economic and Social Affairs (DESA) “World Population Prospects” 2019.

Saudi Aramco Sustainability Report 2021

Overview

Climate change
and the energy
transition

Safe operations
and people
development

Minimizing
environmental
impactGrowingsocietal value

Data

Why it is important

Climate change is one of the most important global issues
impacting business and society. It is the interrelationships between
environmental and social health and economic wealth, and thetrade-offs that will be required to balance these that make it so
important to the development of the global energy system.

Our ambition

We have a unique role to play in helping the world navigate
the energy transition. We intend to be part of the solution to theglobal energy challenge, supporting a smooth energy transitionand continuing to deliver the economic benefits of oil and gas
while reducing emissions on the path to net-zero emissions
by 2050.

Our approach

The transition toward a low emissions future will need both
new and existing energy sources for some time to come, andwill necessitate continued investment to maintain reliable oiland gas supply.
A multi-track approach is needed, reflecting the fact thatdeveloping countries and developed countries will not be able
to transition at the same speed.

Our plans

The scale and integrated nature of our operations provide us
with a cost advantage that positions us better than others in theindustry to reduce our operational emissions further, become anet-zero carbon producer by mid-century and be the pre-eminent
integrated energy and chemicals company, supporting theKingdom and our customers to transition to a low-carbon future.

Material topics

Relevant UN SDG

Climate Change(including GHG emissions)

Relevant metric
Energy intensity (thousand Btu per boe) – pg 36.
Scope 1 emissions (million metric tons CO2e) –pg 32.
Scope 2 emissions (million metric tons CO2e) –pg 32.
Upstream carbon intensity (kg of CO2e/boe) –pg 33.
Upstream methane emissions (metric tons CO2e) –pg 89.
Upstream methane intensity (%) – pg 35.
Flared gas (mmscf) – pg 34.
Flaring intensity (scf/boe) – pg 34.

For more details on relevant metrics
see page 88
Saudi Aramco Sustainability Report 2021

21

Climate change and the energy transition continued

The climate challenge

Aramco supports the aims of theParis Agreement and the Glasgow
Climate Pact. These international
agreements summarize thechallenge for all of us to decouple
economic growth from greenhousegas emissions, recognizing theimportance of international
cooperation in addressing climatechange and its impacts, in thecontext of sustainable development
and efforts to eradicate poverty.

As an energy company, our role is critical tobalancing these aims. As the world's largest
integrated energy and chemicals company, we
have the ability and responsibility to lead andshape the response.
We believe that the dominant public narrativearound the energy transition, that focuses heavily
on emissions and is characterized as a shift awayfrom hydrocarbons, risks downplaying theimportance of ensuring a stable and efficient energy
supply and deprioritizes the social and economic
needs of billions of consumers.
Events over the last two years including COVID-19
and conflict in Europe have highlighted an underinvestment in energy sources that has left a supply
shortage and underlined importance of energy
security, and have caused a fundamental reappraisalof social needs. But they have also reinforced how
critical energy access and security is. These events
provide a reminder that the transition of the global
economy and energy system towards a lower
carbon future is complex, multi-dimensional
and will be decadal.
Alternatives to traditional hydrocarbon-basedenergy sources are progressing, but on their own
they are not yet ready to meet the world’s energy
demands and ensure a smooth energy transition.
Many developing economies depend upon the low
cost and reliability of hydrocarbons to avoid energy
shortages and cost inflation, with the resulting
negative social and economic consequences.
We acknowledge that, as the world’s largest
commercial oil producer, we have an importantrole to play along our value chains to support ourcustomers' journey to lower emissions.
Existing oil and gas technologies are reliable andefficient, and we aim to build on this strength withinvestment in new technologies to reduce andremove hydrocarbon-based emissions. The strategic
challenge is to develop and deploy technology
solutions at speed and scale, to allow continued
delivery of the benefits of oil and gas for future
generations while minimizing their emissions impacts.
This is a challenge that plays to Aramco’s strengths.

22

Saudi Aramco Sustainability Report 2021

Overview

Climate change
and the energy
transition

Safe operations
and people
development

Minimizing
environmental
impactGrowingsocietal value

Data

Net-zero ambition
In October 2021, Aramco
announced its ambition to achieve
net-zero Scope 1 and Scope 2
greenhouse gas emissions acrossits wholly-owned operated assets
by 2050.

This ambition is fundamental to our ability tomaintain our position over the decades ahead
as the lowest cost and lowest carbon intensity
producer amongst our peers. This commitmentcomplements the Kingdom’s aim to reach net-zeroemissions by 2060, announced as part of the Saudi
Green Initiative.

Circular carbon economy
In 2020, the G20 group ofleading economies endorsed
the concept of a circular carbon
economy that was proposed by
the Kingdom of Saudi Arabia.

The model extends the principles of circularity —reduce, reuse and recycle — to carbon emissions,and adds an important fourth 'R' — removal ofcarbon from the atmosphere. These principles
provide an effective framework to achievesignificant reduction in global emissions, while
recognizing the valuable role of carbon products
in supporting economic growth. It provides analternative to the current linear model of the
carbon economy which extracts hydrocarbon
resources to supply energy and, in the process,emits carbon into the atmosphere.
The circular carbon economy is the basis for
Aramco’s approach to addressing the challenges
and opportunities presented by the energy
transition.

Saudi Aramco Sustainability Report 2021

23

Climate change and the energy transition continued

Energy transition scenarios

As part of the Company’s strategicplanning and risk mitigation
process, we use scenario planningto stress-test the resilience of ourcorporate strategy and investment
plan against possible futures.
Rapid advancements in technology accompanied
by underlying trends in demography and global
economy, a heightened awareness by consumers
and recognition by policy makers towards a common
goal to tackle climate change related issues, and ashift in geopolitical powers pose huge uncertainties
on the future of global energy mix.
On the one hand, advancements in lifestyle andeconomic uplift of a larger portion of global citizens
generate increasing demand on energy, while on theother, concerns over climate change and its related
impacts are driving demands for a rapid energy
transition away from hydrocarbons.
To understand these forces on economic and energy
trends, often with conflicting positions and wideranging interests, we believe scenarios should
consider different assumptions related to the
speed of energy transition. They need to be looked
through four lenses:

24

Economic growth — the ability of alternative energy
sources to competitively meet future energy (andmaterials) demand that will drive ongoing demandfor hydrocarbons.
Policy cohesion and execution — the speed at whichgovernments are able to develop and implement
climate-related policies in line with both domestic
and international pressures.
Societal readiness — the extent to which pressurefor GHG action is balanced by the need for a smoothand equitable energy transition.
Technology — the rate at which low-emissions/
low-energy intensity technologies (e.g. CCS andHydrogen) and associated policy mechanisms canbe developed and commercialized.
Accordingly, we developed three scenarios
encompassing two alternative pathways to meet
Paris Accord goals and a challenging pathway whereenergy affordability issues and global supply chain
bottlenecks lead to a slower transition. In all of thesescenarios, global energy related emissions peakimminently. The range of uncertainties portrayedin these scenarios is consistent with those publishedby the International Energy Agency (IEA) or IHS
Markit scenarios. We update our scenarios
periodically with available updated informationreflecting changes in global economic and energy
landscapes.

Saudi Aramco Sustainability Report 2021

Overview

Climate change
and the energy
transition

Safe operations
and people
development

Minimizing
environmental
impactGrowingsocietal value

Data

Long-term oil demand scenarios and key assumptions1
2030
Scenarios diverge after 2030; paths dependon policy, technology, geopolitics, etc.

MMBD
120

100

80

60

40

Chemicals andhydrogen growsubstantially inall scenarios

20

0
2015

1.

2020

2025

2030

2035

2040

2045

2050

Source: IEA World Outlook and IHS Markit.

Saudi Aramco Sustainability Report 2021

25

Climate change and the energy transition continued

Our climate change andenergy transition framework
Our corporate strategy is based upon our ability to produce the lowest
cost and lowest carbon oil and our intent to work with customers along
the value chain to offer products that support their ambitions for lowcarbon fuels.
We have four areas of focus that provide the framework for our climatechange initiatives and investments:
Differentiate

Sustain

Diversify

Leading in low-carbon
intensity operations

Supporting thetransitions to low-impact
energy pathways

Developing and growing
low-impact value-chains

Decades of stewardship..........30
GHG emissions
management............................ 31
Operational emissions............. 32
Low upstream
carbon intensity.......................33
Flaring and methane............... 33
Energy management...............36

Low-carbon fuels andtransport technologies............38
Hydrogen..................................40

Liquids-to-chemicals................42
Nonmetallics.............................42
Renewable energy
investments...............................43

EnableCollaborating withpartners to develop
and deploy technologies
and infrastructure
at speed and scale
Leveraging technology............44
Carbon capture,utilization, and storage...........46
Offsets and carbon credits...... 47

26

Saudi Aramco Sustainability Report 2021

Overview

Climate change
and the energy
transition

Safe operations
and people
development

Targets and emissions trajectory

Minimizing
environmental
impactGrowingsocietal value

Data

Upstream carbon intensity

Aramco’s ambition is to decarbonize our operations
and achieve a net zero footprint by 2050 across ourwholly-owned operated assets.
Having undertaken analysis to support thiscorporate ambition, we know that achieving net zero
operational emissions whilst we grow our business tomeet global energy demand will be a huge challenge.
It requires internal targets to be set for ourbusinesses and assets, and for these targets to beembedded into our business planning, to ensure
capital expenditure and resource requirements arein place. Aramco is currently developing marginal
abatement cost curves for each of its assets to define
these targets and requirements.
Supporting this planning, we have set ourselves
initial, interim targets for 2035.

In support of the corporate strategy to maintainan industry-leading position as a lowest carbon
intensity major producer of oil and gas, we have set
a target to reduce our upstream carbon intensity by atleast 15% by 2035, against our 2018 baseline. This
will entail reducing our upstream carbon intensityfrom 10.2 kg CO2e/boe (2018) to at least 8.7 kg
CO2e/boe by 2035.
This target accounts for anticipated increases in oil
production and Maximum Sustainable Capacity, andthe expansion of our gas business.

Scope 1 and Scope 2 GHG reductions
In parallel with our intensity target we are aiming to
reduce our net Scope 1 and Scope 2 GHG emissions
from both the Upstream and Downstream
businesses by 52 MMtCO2e from our business as
usual 2035 forecast emissions.
By 2035, consistent with the corporate growthstrategy in oil and gas production and developmentof new businesses, particularly hydrogen andliquids-to-chemicals, we forecast our business as
usual Scope 1 and Scope 2 GHG emissions for ourwholly-owned operated assets to increase to
119 MMtCO2e. Our goal is to mitigate this growthin emissions and reduce our absolute emissions to
67 MMtCO2e by 2035.

Decarbonization targets
Scope 1 and Scope 2 emissions upstream
intensity – 15% reduction by 2035

Scope 1 and Scope 2 emissions
GHG reduction targeted by 2035

kg CO2e/boe

MMtCO2e
-15%

١٠.٢١

-١٥٪

٢٠١٨

٨.٧

٢٠٣٥

119

-٥٢

68

2021

Forecast
business-asusual growth
to 2035

52

67

TargetedGHG
reduction2035

1. 2018 was the first year our GHG inventory was independently assured.

Saudi Aramco Sustainability Report 2021

27

Climate change and the energy transition continued

GHG reduction initiatives to 2035

Levers to achieveinterim targets
To achieve these reductions in GHG
emissions we are focusing on five key
levers: energy efficiency across ourUpstream and Downstream assets;further reductions in methane andflaring; increased use of renewableenergy sources; CCUS; anddevelopment or purchase of offsets to
help address hard-to-abate emissions.

1. Energy efficiency

2. Methane & flaring

Implementation
status & plans

Implementation
status & plans• Lowest energy intensity among
IOCs as measured by Solomon
Associates• Current upstream methane
intensity of 0.05%• In 2021:• 308 energy initiatives
implemented• Supplying 11.85 mboed
energy savings• Equivalent to 1.26 MMtCO2
reduction• Initiatives include gas turbine
upgrades, boiler and fired heater
efficiency improvements• Commitment to OGCI near zero
upstream methane intensity
by 2030• 2019 commitment to World Bank
Zero Routine Flaring by 2030
• LDAR (Leak Detection and Repair)
Program• UAV and satellite methane
detection

GHG reduction
targeted by 2035

MMtCO2e

~52
1.

28

1

11

MMtCO2e1

MMtCO2eThis figure may not match up due to rounding.

Saudi Aramco Sustainability Report 2021

Overview

Climate change
and the energy
transition

Safe operations
and people
development

Minimizing
environmental
impactGrowingsocietal value

3. Renewables

4. CCUS

5. Offsets

Implementation
status & plans

Implementation
status & plans

Implementation
status & plans• Investment in 12 GW of solar PV
and wind projects in support of
KSA National Renewable Program• Key assets and storage capacity
identified: Wasit, Fadhili &Khursaniyah

In-Kingdom:• Affiliate investments inrenewables (Motiva, Arlanxeo,
SASREF)• Joint feasibility studies conducted• Purchase of Renewable Energy
Certificates (REC)• MOUs in place with international
partners

Saudi Aramco Sustainability Report 2021

• Target: 300 MM mangrovesby 2035• Target: 350 MM mangroves
outside KSA by 2035
• Supported by purchased offsets
through voluntary markets• 2022 evaluation of share in 2.3 GWof new projects

14• 13.3 MM mangroves planted
to dateRest of the world:• 2021 30% share in 1.5 GW Sudair
solar PV project

MMtCO2eData

11

MMtCO2e16

MMtCO2e29

Climate change and the energy transition continued

Leading in low carbon intensity operations

Differentiate

Over the past four decades,
Aramco’s approach to reservoir
management and investments
in operational efficiency, flare gas
and methane emissions reduction,and greenhouse gas management
have helped us to achieve industryleading low-carbon intensity
crude production.

Decades of stewardshipA study of oil producing countries, conductedby Stanford University and published in Science
Magazine1 reported that Saudi Arabia had oneof the lowest upstream carbon footprints globallyfor each barrel of oil produced. In the report, theintensity of Saudi Arabia's volume weighted crude
oil upstream GHG emissions was the lowest amongmajor producers, based on an analysis of nearly
9,000 actively producing fields in 90 countries.

Why Saudi Arabia’s carbon emissions intensity is so low:
• Low per barrel gas flaring rates.

• Decades of investment in emissions
management and efficiency.
• Leveraging economies of scale with extremely
large and productive reservoirs.
• Advanced reservoir management practices.
• Low water production ("water cut"), resulting
in less mass lifted per unit of oil produced andless energy used for fluid separation, handling,treatment and reinjection.

• Leveraging technologies to reduce energy
intensity and emissions from subsurface tosurface production.
• Multi-year investments in advanced methaneleak detection and repair program.

The Kingdom’s average carbon intensity comparedto other major hydrocarbon producing countries2
Gram CO2 equivalent/Mega Joule

25
20
15
10
5
0
Saudi Arabia Norway

30

KuwaitUAE

RussiaBrazilUSA

Canada1.

Two of the twenty-four authors received funding from a Company subsidiary and other authors received funding from other sources.

2.

As of 31 August 2018 edition of Science Magazine.

Venezuela

Saudi Aramco Sustainability Report 2021

Overview

Climate change
and the energy
transition

Safe operations
and people
development

GHG emissions management
We recognize the need to reduce our GHG emissions
footprint and have a clear ambition to reduce carbon
emissions associated with our operations.
Our emissions reduction strategy includes investingin low-emission technologies, including CCUS,
energy efficiency programs and energy mix
diversification. We are committed to developing
and deploying innovative solutions, optimizing
operations, and adopting efficient project designs.

Minimizing
environmental
impactGrowingsocietal value

Data

Our focus is on leading in low-carbon intensity
technologies, supporting the development of non-fuelapplications for crude oil and targeting the highest
impact solutions across the oil and gas value chain.
We are leveraging our R&D and technology
leadership to develop, demonstrate and, ultimately,
implement, innovative approaches that significantly
lower emissions across the oil and gas industry.
Some of these will have application in otheremission-intensive industries.

For example, we have one of the highest oil recovery
rates in the world — reaching up to 70%. This isachieved by using technology and data analytics thatplay a major part in helping us accurately place wells.
These technologies enhance well placement, reducing
water production and energy required for processing,treating and disposing, associated water. Thisenhances energy efficiency and decreases the number
of wells needed, thus reducing our carbon footprint.

What are we doing?

The Master
Gas System
Built in the 1970s, to captureassociated gas which would haveotherwise been flared, the Master
Gas System (MGS) has reduced
flaring and greenhouse gas
emissions while powering
in-Kingdom economic growth.
The MGS was one of the biggest
energy projects in Aramco’s history,
enabling one of the world’s largest
gas markets and transforming
the national energy mix towardcleaner fuel.
We have continued to expand the
MGS. Hawiyah Gas Plant, completed
in 2001, was the first plant to bebuilt exclusively to capture nonassociated gas from a gas reservoir
rather than produced alongside oil.

Saudi Aramco Sustainability Report 2021

31

Climate change and the energy transition continued

Differentiate – continued

Operational emissions
Our current focus is on GHG intensity fromour upstream operations, which reflects theperformance of the largest segment of Aramco’s
emissions (Scope 1 and Scope 2) and is a good
indicator of company performance. However, we
continue to mature and refine management systems
for GHG accounting and reporting, we will continue
to evaluate additional GHG performance measuresreflecting other business segments that currently
have a lesser contribution to the Company’s overall
emissions profile.
The Company’s GHG emissions management
program monitors direct (Scope 1) and indirect(Scope 2) emissions from wholly-owned operated
assets, consistent with the GHG Protocol. In 2021,
Scope 1 emissions increased by 4% following thestart up of the Fadhili Gas plant. We saw a decreaseof 14% in Scope 2 emissions due to a shift inconsumption of electricity from third-party tocompany-owned power generation.

Scope 1 emissions
million tons of CO2e

٥٢.٣

٥٠.٢

٢٠١٩

٢٠٢٠

٣,٤

٥٢.٣

١,٢,*

٢٠٢١

Scope 2 emissions
million tons of CO2e

١٩.٠

١٥.٥

32

٥٢.٠

٢٠١٩

١٨.١

٣,٤

٢٠٢٠

١٥.٥

١,٢,*

٢٠٢١

1.

This figure has undergone external limited assurance in accordance to the ISAE 3000 (revised) by KPMG.
The assurance report can be found online here.

2.

Jazan Refinery excluded from 2021 GHG emissions inventory.

3.

This figure has undergone external limited assurance in accordance to the ISAE 3000 (revised) by EY. The assurance report can be found online here.

4.

Fadhili Gas Plant and Jazan Refinery excluded from 2020 GHG emissions inventory.

*

Our 2021 GHG data is different from our 2021 Annual Report as a result of completion of our internal validation and external assurance.
As disclosed in our 2021 Annual Report, our 2021 Scope 1 emissions (55.0), 2021 Scope 2 emissions (17.1) and 2021 Upstream carbon intensity(11.2) were estimates and subject to change upon completion of internal and external validation.

Saudi Aramco Sustainability Report 2021

Overview

Growingsocietal value

Minimizing
environmental
impactSafe operations
and people
development

Climate change
and the energy
transition

Upstream carbon intensity*

Raw gas processing capacity

kg of CO2e/boe

bscfd

10.4

10.7

10.6

٣

10.7

20

Data

18.3 bscfd

١,٢

15
10
5

2019

2020

2021

0

1980

85

90

95

2000

05

10

15

20

Upstream carbon intensity

Flaring and methane

Aramco aims to maintain an industry-leading
position in upstream carbon intensity and share
best practices to expand the impact of ourexpertise globally.

Flaring of waste and fugitive gases has long
been recognized as one of the most significant
contributors to greenhouse gas emissions in the oiland gas sector. Aramco has been a pioneer in gas
flaring reduction since the 1970s, initially driven as
much by capturing the economic value of the gas as
by reducing the environmental impact.

Managing our carbon footprint starts at thesubsurface. Rather than maximizing short-term
production, we manage our reservoirs in asustainable manner, where the long-term healthof reservoirs is a priority. Upstream operationsin Saudi Arabia include a number of large andproductive oil reservoirs which are managed using
technologies and best practices to decrease waterproduction, resulting in less mass lifted per unitof oil produced and less energy used for fluid,
handling, treatment and reinjection. This not
only yields ultimate recovery and higher returnon investment in the long-run, but has manyenvironmental benefits, including reducing ourcarbon footprint.

The success of our program is such that we canproudly point to a large growth in our oil and gas
production while achieving industry-leading levelsof low methane intensity and gas flaring reduction.

The Company’s 2021 upstream carbon intensity
figure was among the lowest globally of major oil
and gas producers at 10.7 kg of CO2 equivalent per
barrel of oil equivalent (boe). This small increase
versus 2020 was the result of an increase in the shareof gas in our total production, and the higher carbon
intensity footprint of gas production relative to oil
production.

1.

This figure has undergone external limited assurance in accordance to the ISAE 3000 (revised) by KPMG.
The assurance report can be found online here.

2.

Jazan Refinery excluded from 2021 GHG emissions inventory.

3.

Fadhili Gas Plant and Jazan Refinery excluded from 2020 GHG emissions inventory.

*

Our 2021 GHG data is different from our 2021 Annual Report as a result of completion of our internal validation and external assurance.
As disclosed in our 2021 Annual Report, our 2021 Scope 1 emissions (55.0), 2021 Scope 2 emissions (17.1) and 2021 Upstream carbon intensity(11.2) were estimates and subject to change upon completion of internal and external validation.

Saudi Aramco Sustainability Report 2021

33

Climate change and the energy transition continued

Differentiate – continued

Minimizing flaring

This has enabled us to achieve near zero flaring
already. We have maintained a flare volume of< 1% of total raw gas production since 2012.

Aramco is committed to achieving zero routine
flaring and sharing best practices with industry
partners to accelerate global flaring reduction. We
employ a variety of technology solutions to achieve
one of the lowest flaring intensities in the industry.

In 2021, the Company’s flaring intensity decreased
in relation to the 2020 performance due to ourongoing focus on reducing leaks and emissions.
The volume of flared gas decreased from 26,9951
mmscf in 2020 to 25,8252 mmscf in 2021. This figureamounts to less than 1% of raw gas production.

The Kingdom’s Master Gas System, developedin the 1970s to capture and reuse gas, has all but
eliminated associated gas flaring.

We are active and influential in the OGCI, which
endorses and supports the World Bank Zero
Routine Flaring by 2030 initiative and tracks flaring
performance data aggregated from member
companies. OGCI flaring performance data has
demonstrated considerable progress on flaring
across its members. The combined upstream flaring
intensity of member companies fell by 21% in 2020,and has declined by 33% since 2017.

A Flaring Minimization Roadmap has identified
priorities across Aramco operations, with every
operating facility having a flare minimization planand targets. Our focus is on continual improvementin performance and investing in technologies, suchas: Innovative flare gas recovery systems; highintegrity pressure protection systems; and zero
discharge technology to reduce intermittent flaring.
And we are deploying advanced technologies tomonitor Aramco’s operations in real-time at our
4th Industrial Revolution Center in Dhahran.

What are we doing?

Zero routine flaring
Launched in 2012, our near zero routine flaring
program has delivered a leading position in flaring
intensity for the Company.
In November 2019, Aramco endorsed the WorldBank Zero Routine Flaring by 2030 initiative.

The initiative brings together over 100
governments, oil companies, and development
institutions, which have agreed to cooperate toeliminate routine flaring no later than 2030
and to report progress annually.

2020 Flaring Intensity3M3 per barrel oil produced
50
40
30
20
10

34

1.

Fadhli Gas plant and Jazan Refinery are excluded from 2020 GHG emission inventory.

2.

Jazan Refinery is excluded from 2021 GHG emissions inventory.

3.

Source: World Bank.

Saudi Arabia

China

Kazakhstan

United States

AngolaIndia

RussiaIndonesia

Oman

MexicoEgypt

Nigeria

Iraq

Malaysia

Iran

Libya

Rep of the Congo

Algeria

Turkmenistan

Venezuela

0

Saudi Aramco Sustainability Report 2021

Overview

Climate change
and the energy
transition

Safe operations
and people
development

MethaneMethane gas is a considerably more potent
greenhouse gas than CO2. Although methane
emitted today only lasts about a decade on averagein the atmosphere, it absorbs more energy andconsequently has a global warming potential 25
times greater than CO2. That is why addressing
methane emissions is one of the fastest, mosteffective ways to slow the rate of global
temperature rise.
Aramco has invested carefully in the design of its
plants and well-resourced and maintained operating
assets translate into environmental protection andbetter operational efficiency. We use drones tomonitor and measure methane emissions from ouroperating facilities’ equipment. An enhanced leakdetection and repair (LDAR) program for theCompany’s methane emissions in the Kingdom
prioritizes actions at operating facilities. Thousandsof points are surveyed in each plant annually tominimize potential methane leaks.
In 2018, the OGCI announced a collective averagemethane intensity ambition, setting a target ofachieving an upstream methane intensity of 0.20%
by 2025. By 2020, OGCI member companies had
achieved this target some five years ahead ofschedule.

1.

Minimizing
environmental
impactGrowingsocietal value

Data

In response to this, and following the COP 26 call toachieve a worldwide reduction of 30% of methane
emissions from all sources by 2030, the membersof OGCI have set a new goal aiming to eliminate
virtually all methane emissions from the industry.
The OGCI companies have committed to aim fornear zero methane emissions from operated
assets by 2030, supported by transparent, annual
measurement, reporting and verification.
Aramco’s upstream methane intensity, the ratio of our
upstream methane emissions for operated assets tothe quantity of marketed natural gas, fell to 0.05%.
This compares with an OGCI average of 0.20%, as at
2020, which includes the positive effect of ourCompany's leading performance.

0.05%

2021 Upstream methane intensity1

Jazan Refinery is excluded from 2021 GHG emissions inventory.

Saudi Aramco Sustainability Report 2021

35

Climate change and the energy transition continued

Differentiate – continued

Energy management
Co-generation
Powering our communities with reliable andefficient energy lies at the center of all we do. Highly
efficient co-generation plants enable us to produce
electricity as a natural byproduct of our operations
and are enabling self-sufficiency in electrical power
generation for our own operating plants.
In line with our objective to reduce our climate
impact and embrace circular carbon economy
principles, we are harnessing what would otherwise
be waste energy by maximizing the conversion ofenergy released from the combustion of fuel into
power and steam to achieve improved thermalenergy efficiency and reduce overall GHG emissions.
As of 2021, we achieved an average thermal
efficiency of 70.8% in our interconnectedco-generation facilities.

Energy efficiency
The Company’s energy efficiency efforts seek toreduce energy consumption at Company facilities,
design new facilities to be energy efficient, increase
overall energy efficiency, and influence and promoteenergy efficiency at the national level.
Aramco started its energy management programin 2000. Throughout the years, the Energy Intensity
KPI has been improving steadily. The program wasdriven by implementing energy saving initiatives by
operational departments. The Combined Heat andPower (CHP) program, and several other energy
optimization initiatives and studies, have steadily
reduced energy intensity at Company facilities in
Saudi Arabia.
In 2021, the Company implemented more than
300 energy initiatives at its in-Kingdom facilities,
resulting in 11.85 mboed of energy savings,
equivalent to 1.26 million tons of CO2 emission
reduction.
In 2021, we experienced a year-on-year increase in
our Energy Intensity (EI) KPI. This increase, relative to2020, is because of Aramco's expansion projects in
its facilities and inclusion of Fadhili Gas Plant for KPI
reporting. Over the last 10 years, we reduced ourenergy intensity by over 20%.

Energy intensity
Thousand Btu per boe

١١٦.٦

36

١١٤.١

١١٢.٤١,٢١١٦.٦٣

٢٠١٩

٢٠٢٠

٢٠٢١

1.

Fadhli Gas plant and Jazan Refinery are excluded from 2020 Energy Intensity KPI boundary.

2.

This figure has undergone external limited assurance in accordance to the ISAE 3000 (revised) by EY. The assurance report can be found online here.

3.

Jazan Refinery is excluded from 2021 Energy Intensity KPI boundary.

Saudi Aramco Sustainability Report 2021

Overview

Climate change
and the energy
transition

Safe operations
and people
development

Minimizing
environmental
impactGrowingsocietal value

Data

What are we doing?

In-Company renewable energy
In the recent past, our investments in cogeneration facilities
have contributed to significant improvements in energy
efficiency. Going forward, renewable energy, including
power from solar and wind, will be an important sourceof low-carbon energy for our operations.

Saudi Aramco Sustainability Report 2021

Opportunities for in-Company renewable applications
include office buildings, pipeline cathodic protection andvalve stations, production wells, and bulk plants. These
applications are a mixture of off-grid and grid-connected
solutions.

37

Climate change and the energy transition continued

Supporting the transition to low-impact energy pathways

SustainWe recognize the need to reduce
absolute emissions and the need
to work closely with our suppliersand customers to reduce emissions
along the entire value chain of
our products.
Low-carbon fuels andtransport technologies
Achieving sustainable mobility requires collaboration
across the entire value chain to meet consumer
demand for affordable, low emitting and efficienttransport in the different sectors and regions globally.
Electric vehicles are fast growing and they will play animportant role in mitigating climate change when
integrated with renewable electricity. In the near-term,transport electrification alone is unlikely to beadequate to meet the global CO2 mitigation goals.

This has to be complemented by advanced
combustion engines, fuel-cell vehicles, and lowcarbon fuels, including renewable fuels and cleanhydrogen.
Aramco is approaching the CO2 challenge byredesigning internal combustion engines, and thefuels that power them. Through our extensive global
network, we are engineering breakthrough solutions
to unlock new frontiers in efficiency technologies
including advanced combustion systems, novel engine
architectures, and innovative after treatment systems.
At the same time, our two flagship projects aim toadvance the development of low-carbon synthetic
fuels, one in Spain and another in Saudi Arabia.
Aramco’s low-carbon synthetic fuels aim to combine
CO2 captured from industrial processes or directly fromthe air with green hydrogen, and targeting a CO2
reduction potential of at least 80%. This will be pivotal
as we work towards a more circular carbon economy
based on reducing, reusing, recycling and removing
CO2 emissions.

What are we doing?

Engines and fuelGasoline Compression Ignition (GCI) engines — the use of agasoline fuel in an efficient compression ignition engine, canenable lower fuel consumption and vehicle emissions. Our
engine prototypes demonstrated that GCI could reduce CO2
emissions by at least 25% compared to conventional gasoline
vehicles on a well-to-wheel basis.
We recently partnered with Repsol to explore the productionof 2.6 million liters per year of low-carbon synthetic diesel andjet fuel in Bilbao, Spain, for automobiles and aircrafts. We arealso assessing the feasibility of producing 1.8 million liters per
year of low-carbon synthetic gasoline in NEOM, Saudi Arabia,
jointly with NEOM Energy and Water Company (ENOWA), forlight-duty passenger vehicles.
Aramco’s mobile carbon capture technology can avoid up to
40 percent of CO2 emissions from a vehicle by preventing itfrom being released from the exhaust, demonstrating apromising outlook particularly in the shipping industry. The
captured CO2 can be stored onboard the ocean vessel and thenoffloaded at port for use in various industrial and commercial
applications, including synthetic fuel manufacturing.

38

Saudi Aramco Sustainability Report 2021

Overview

Climate change
and the energy
transition

Safe operations
and people
development

Minimizing
environmental
impactGrowingsocietal value

Data

What are we doing?

Corporate value chain
emissions — Scope 3
Our focus is on measurement, reporting, and management of
those emissions within our direct span of control. To date, wehave not reported Scope 3 emissions from our supply chainor from customers’ use of our products.
We are positioning our Company to support our customers’
own journeys to low impact energy pathways, and working
with suppliers to integrate ESG performance measuresthrough our iktva program.

Saudi Aramco Sustainability Report 2021

Our investment in hydrogen, chemicals and renewableenergy sources and our increasing share of gas in our
production provide products that will support customers
and consumers to access lower carbon energy with reduced
carbon emissions from its use. We continue to invest in a
number of product stewardship partnerships andtechnologies to reduce emissions in the value chain,including research and development into low emissions
transport solutions.

39

Climate change and the energy transition continued

Sustain – continued

HydrogenHydrogen is a primary element in oil and gas,and has significant potential as a clean, affordable
energy that could support significant emissions
reductions in hard-to-decarbonize sectors suchas heavy-duty transport, heating, and industrial
applications. We believe hydrogen has significant
potential to provide a material reduction ingreenhouse gases, as a global market develops
over the next decade.

Hydrocarbons importance to thedevelopment of a global hydrogen businessDespite the interest and possibility of producing
hydrogen from multiple energy sources, in the
short- and medium-term, hydrocarbons willremain the primary feedstock for the productionof hydrogen.
Hydrogen has the potential to become a tradable
commodity, which opens commercial opportunities
for our business over the medium- to long-term.
At the same time, investments in hydrogen can help
foster new technological and industrial developmentin economies around the world, while also creatingskilled jobs.

Natural gas and hydrogen
We are seeing interest from potential customers
for blue hydrogen. Our Company has a promisingrole to play, utilizing our own hydrocarbons,infrastructure, and technology.
In much the same way that gas, as a hydrocarbonbased fuel, has helped reduce energy-related
emissions, natural gas has the potential to be a
viable, cost-effective feedstock for blue hydrogenproduction. Natural gas-based hydrogen is the mostused feedstock for hydrogen production today. It isalso a preferred feedstock to produce blue hydrogen
where CO2 emitted during the conversion process is
captured. Natural gas-based hydrogen production
technology is well established and blue ammonia
created from natural gas is expected to be a major
form of transportable hydrogen.

40

What’s in a color?
Hydrogen emits only water when burned.
However, the carbon intensity of the hydrogenproduced will vary depending on the source ofthe hydrogen molecules and the process of
production. The most relevant criteria tomeasure is the reduction in life cycle emissions
from each process rather than the source.
There are many "colors" of hydrogen thatdifferentiate the sources and production
methods. The most commonly usedterminology is for black/brown, grey, blueand green hydrogen, though other colors
have also been used.
• Grey hydrogen is the most common form andis generated from natural gas, or methane,through steam reforming.
• Black or brown hydrogen uses black(bituminous) or brown (lignite) coal in thehydrogen-making process and is the mostenvironmentally damaging as the CO2 andcarbon monoxide generated during theprocess are not captured.
• Blue hydrogen uses natural gas and involves
capturing and storing the carbon generated
from the steam reforming through industrial
carbon capture and storage.
• Green hydrogen is produced by using
energy from renewable energy sources,
such as solar or wind power, to split water
into two hydrogen atoms and one oxygen
atom through a process called electrolysis.

Aramco is a steering member of The Hydrogen
Council, a CEO-led organization that promotes
collaboration between governments, industry
and investors to provide guidance on
accelerating the deployment of hydrogensolutions globally.

Saudi Aramco Sustainability Report 2021

Overview

Safe operations
and people
development

Climate change
and the energy
transition

Minimizing
environmental
impactGrowingsocietal value

Data

What are we doing?

World's first blue ammonia shipment
Aramco has committed to develop a hydrogen business.
The Company is targeting the production of up to 11 million
tons per annum (MMTPA) of blue ammonia by 2030. We areundertaking work to analyze market potential, demand, andfuture volumes, leveraging the capacity of our hydrogen andammonia plants in Jubail.
Although additional infrastructure and policy support will
be needed to create a more active market for hydrogen, we
estimate that Japan and South Korea will be where the firsthydrogen trading markets will emerge, over the next decade.
It is a natural progression for our business to take on the
responsibility for the anticipated demand for hydrogen.
CCUS technologies are fundamental to the acceleration ofhydrogen growth. In 2021, this led us to sign a memorandumof understanding with Japan’s largest refiner, ENEOS, toconsider development of a CO2-free hydrogen and ammonia
supply chain through a year-long feasibility study.

In 2020, Aramco produced and delivered the world's first
shipment of blue ammonia, a carrier for blue hydrogen,from Saudi Arabia to Japan. Forty tons of high-grade blue
ammonia were dispatched for use in low-carbon power
generation.
The project was supported by the Japanese think-tank,Institute of Energy Economics, and the Japanese Ministryof Economy, Trade, and Industry, reflecting a growing focus
on hydrogen in the country.
The Saudi-Japan blue ammonia supply network
demonstration spanned the full value chain — fromthe conversion of hydrocarbons to hydrogen and then toammonia, as well as the capture of associated CO2 emissions.
CO2 captured during the process was used in methanol
production at SABIC’s Ibn-Sina facility, and at our Enhanced
Oil Recovery demonstration project.

Conceptual flow diagram of "Blue Ammonia" supply chain demonstration(Duration: August 2020 — October 2020)

N₂
H₂Natural Gas

Hydrogen plant,
CO₂
JubailBlue Ammonia

Ammonia plant,
Jubail

50 kW micro gas turbine(Koriyama, Japan)

N₂+
CO₂ capture plant,
Jubail

CCUS hub

2 MW gas turbine(Yokohama, Japan)

H₂O

Utilization

Enhanced oil recovery
at CO2 EOR pilot

Saudi Aramco Sustainability Report 2021

Methanol plant,
JubailCo-firing in a boiler(Aioi, Japan)

41

Climate change and the energy transition continued

Developing and growing low-impact value-chains

Diversify

As we navigate the energy
transition, we are vigilant toopportunities to diversify ourportfolio into new, lower impact
value chains. This includes using oil
and gas in non-combustion uses,
such as chemicals and nonmetallic
materials applications, as well as
investment in renewable projects.
We see these as providing
commercial opportunities andproviding resilience for our businessto demand shifts caused by theenergy transition.

Liquids-to-chemicals
Our 2020 acquisition of a 70% stake in SABIC
brought together two global companies committed
to growth and value creation in petrochemicals.
Petrochemicals is expected to be the fastest growing
sector for oil and gas demand in the years ahead,
and will remove significant volumes of hydrocarbons
from the combustion cycle.
Our chemicals business spans from production ofbasic chemicals such as aromatics, olefins, andpolyolefins to more complex products such aspolyols, isocyanates, and synthetic rubber.
Our crude oil-to-chemicals technologies have thepotential to deliver higher chemical yields fromour crude oil. By converting crude oil directly tochemicals, we will optimize or eliminate several
energy-intensive industrial processes, creating costand operational efficiencies that result in high value
chemical product streams.

Nonmetallics
Nonmetallics describes materials, such as plastics
and other such applications that can replace
traditional materials and minerals. They can provide
improved performance and lower maintenancecosts, as well as having the potential to have lower
life cycle costs, with greater resistance to corrosion,and a lower carbon footprint than like-for-likealternatives.
In the oil and gas industry, nonmetallics, suchas plastics, are already being used for various
applications, such as in pipelines where future,
carbon-fiber reinforced plastics will be used to
manufacture large diameter pipelines with greater
strength and operating efficiency than legacy
steel-based pipelines.
Nonmetallic products are increasingly being
deployed in a variety of industries from theautomotive sector to building and construction,
packaging, and renewables. The use of polymers
and composites is an example of how nonmetallic
applications can add value to a project, allowing
engineers to create unique, flexible designs thatare impossible to make with traditional materials.

42

Saudi Aramco Sustainability Report 2021

Overview

Climate change
and the energy
transition

Safe operations
and people
development

We are promoting research and development
and maximizing nonmetallic deployment. Ourinvestment in local Saudi companies aims to build
manufacturing capacity through our iktva program.
Within the automotive sector, we are working withstakeholders to influence design of new vehicles,developing innovative carbon fiber technology toreplace steel and aluminum, and aiming forincreased efficiency across the design and assembly
processes.

Renewable energy investments
Renewable energy, including power from solar
and wind, is an energy source under any energy
transition. With more than 320 sunny days per year
and ample wind, Saudi Arabia’s geography andclimate hold great potential for harnessing theserenewable energy sources. Deployment of renewable
resources within the Kingdom could reduce GHG
emissions and support long-term prosperity.

Minimizing
environmental
impactGrowingsocietal value

Data

The Saudi Arabian Government has establisheda National Renewable Program with an aim ofincreasing the generation capacity of renewableenergy sources to over 58 gigawatts (GW) by 2030.
40 GW is planned to be from solar, 16 GW fromwind energy and the balance coming from otherrenewable energy sources.
Aramco is supporting the Kingdom on this journeyand has committed to investing in 12 GW ofrenewable energy by 2030. We will use theallocation of renewable energy credits from theseinvestments towards decarbonizing the power
supplied to our operations.
In 2021, Aramco, via its subsidiary, Saudi Aramco
Power Company, joined a consortium led by ACWA
Power to develop the 1.5 GW Sudair solar plant,
a key project in Saudi Arabia’s renewable energy
push. Aramco’s investment in Sudair marks its firstparticipation in the Kingdom’s renewable energy
program. The first phase of the project is expected
to begin producing electricity during the second
half of 2022. The site, which is anticipated to be theworld’s largest single-contracted solar photovoltaic
plant, will be located in Sudair Industrial City, Northof the Saudi capital, Riyadh.

What are we doing?

Innovation Centre
We partnered with TWI ltd and Abu Dhabi
National Oil Company to establish the Nonmetallic Innovation Centre in Cambridge, UK.
The Non-metallic Innovation Centre brings
together academics, technology organizations,material suppliers, pipe manufacturers andleading Oil and Gas companies to expand theoperational envelope of non-metallic materials
and ensure cost effective operation andmaintenance.

Saudi Aramco Sustainability Report 2021

43

Climate change and the energy transition continued

Collaboration with partners to develop and deploy
technologies and infrastructure at speed and at scale

EnableAramco recognizes that the
reduction of emissions fromproduction and the removal of CO2
from the atmosphere are the biggest
contributors to emissions reduction
across our industry.
Scaling up solutions to do this is not unique toAramco, or even distinct for the oil and gas sector.
Working with other companies, whether directcontractors, peers or companies in our product value
chains, and with academia and research institutes
offers an opportunity to share risk and magnify the
impact of investment.
In 2021, sustainability-related R&D was USD315MM1
which equated to 52% of total 2021 R&D spend of
USD607MM2
R&D Focus Areas – Sustainability

2021 Spend ($MM)

CCUS
Renewable Energy
Energy Efficiency
Waste Management
and Recycling
Water Management
Gas Treatment
Low-carbon Hydrogen
Sustainable Mobility
Liquids to Chemicals
Nonmetallic Applications

$24.7
$9.3
$55.9
$31.1
$29.7
$21.4
$25.6
$94.0
$7.8
$15.5

Total

$315.1

Leveraging technology
We have a track record of innovation andtechnology development and we recognizethat a successful energy transition will require
collaboration with a wide range of business andtechnology partners to be able to develop thesolutions needed.
We believe that the span, concentration andintegration of our operations position us well todevelop, test and deploy new technologies suchas carbon capture, utilization, and storage, at speed
and scale.
We are a large investor in technology and one of
the leading authors of patents in the oil and gas
industry. Application of such technology can provide
sustainable competitive advantage in core and new
businesses and add commercial value by creating
or extending future markets for oil, such as crude
oil-to-chemicals, crude oil to hydrogen andnonmetallic materials. Technology will also beessential to delivering emissions reductions at thescale needed. Our goal is to deploy technologies atscale and with a high degree of integration acrossour value chain. Due to the size of our business, evensmall advances can have globally significant impacts.
With 864 granted US patents in 2021, Aramco now
ranks in the top 50 of all companies and universities
receiving US patents in 2021.

Group R&D expenses3
USD millions

1,033

44

1.

Includes direct R&D program costs plus estimated overheads.

2.

Does not include SABIC R&D expenses.

3.

2021 Total Group R&D including SABIC.

573

2019

755

2020

1,033

2021

Saudi Aramco Sustainability Report 2021

Overview

Climate change
and the energy
transition

Safe operations
and people
development

Minimizing
environmental
impactGrowingsocietal value

Data

What are we doing?

OGCI commitments
We are a founding and active member of the Oil and Gas
Climate Initiative (OGCI), a collaboration between 12 major
national and international oil and gas companies whose
shared mission, since its formation in 2014, is to act
collectively in combating the climate challenge and toaccelerate the global response to the risk of climate change.
Representing almost 30% of global oil and gas production,
OGCI member companies work to reduce GHG emissions
from their operations and leverage their collective strength tosupport the transition to a low-carbon future. OGCI supports
the temperature goals of the Paris Agreement, including
limiting global warming to well below 2°C, pursuing efforts
to limit it to 1.5°C.
An imperative for all OGCI members is identifying andimplementing the best business cases, portfolios andapproaches to support the need for the world to moveto a net-zero carbon emission future.
As a founding member of OGCI, we reiterate our continued
efforts and pledge to:

Saudi Aramco Sustainability Report 2021

• Accelerate our emissions reduction efforts to reach net-zero
Scope 1 and Scope 2 GHG emissions from wholly-owned
operated assets by 2050 and aiming to reach near zeromethane emissions by 2030.
• Take action to sustain investments and technology
development in low-carbon solutions so that we cancontinue to meet OGCI’s collective climate commitments.
• Continue to support the development, implementation, andscale up of innovative low-carbon solutions in oil and gas,other industries, and commercial transportation through OGCI
Climate Investments, a $1 billion-plus climate investments fund.
• Advance opportunities to scale up commercially viable,
environmentally responsible, and safe carbon capture,utilization, and storage, to decarbonize multiple industrial
sectors, and through OGCI Climate Investments.
• Continue to support governments as they design efficient
policies that can accelerate energy transitions while
stimulating economic growth, working in particular with
our partners such as the International Energy Agency, theClean Energy Ministry, and the Global Methane Alliance.

45

Climate change and the energy transition continued

Enable – continued

Carbon capture, utilization,and storage
We believe capturing and storing or reusing CO2
has the potential to significantly reduce global
emissions. It is a central element to support the
decarbonization of our own business andoperations. It is also an essential element of an
integrated blue ammonia and hydrogen program,and there is potential to partner with others todevelop commercial solutions for CCUS in
the Kingdom.
Aramco is working on developing long-termsequestration goals and a roadmap to achieve thesegoals. In addition to supporting emissions reduction
goals, CCUS has the potential to contribute to the
Saudi Green Initiative's greenhouse gas emissions
reduction goals, support economic diversification,
job creation, and sustainable development of thecountry’s economy.

What are we doing?

Aramco's enhanced oil
recovery demonstration
project
Aramco CO2 EOR Demonstration Project has
a capture capacity of 800,000 tons of CO2 peryear; the CO2 is captured at one of our NGL
plants. The captured CO2 is piped 85 kilometersand pumped into a mature area of an oil field toenhance oil recovery (EOR) and sequester CO2.

800,000 tons
Capability to capture
CO2 per year

46

Aramco has set a goal of developing CCUS capacity
to capture up to 11 MMtCO2e by 2035. The ability togrow our CCUS capacity is critical to our efforts todecarbonize, and is dependent on financial support
from the Government.
In parallel we are developing opportunities to use
captured CO2 for conversion into other materials or
products with higher economic value and where
either combustion is avoided or lower levels of CO2
are emitted, for example, plastics, concrete andbiofuels.
CO2 has been shown to be a useful feedstock
for a variety of industrial products. From fuels toconcrete, CO2 is a primary building block, a valuablecommodity, which can be used both directly and asa feedstock. Current advanced CO2 utilization takes
place in chemicals production, mineralization
processes, and plastics and polymer production.
We are also exploring direct air capture, animmature technology, with technology partners.

CCUS & concrete
After water, concrete is the most widely usedmaterial on earth. Concrete manufacturing is
responsible for around 7% of annual global
CO2 emissions. If the global precast concrete
industry implemented CO2 curing technology,
we estimate it could recycle at least 63 million
tons of CO2 every year — the equivalent oftaking around 14 million cars off the road.
In partnership with the Korea Advanced
Institute of Science and Technology, Aramco isdeveloping a CO2 curing technology for precast
concrete materials that can store up to 20% of
the CO2 in the concrete, while deliveringsuperior mechanical strength and reducing
curing time by a third. By using CO2 instead of
air to cure the concrete, the carbon footprint is
one-third of the footprint of conventional
concrete. We are field-testing this technology
in collaboration with a local cement company.

Saudi Aramco Sustainability Report 2021

Overview

Minimizing
environmental
impactSafe operations
and people
development

Climate change
and the energy
transition

Offsets and carbon credits

Growingsocietal value

Data

Carbon markets

Carbon offsets are units of greenhouse gas
credits that Aramco seeks to earn by undertaking
greenhouse gas reduction projects. The use ofoffsets is an important part of Aramco’s net-zeroplanning as they enable the mitigation of hard toabate emissions, by offsetting actions we have taken
elsewhere, or credits we might have purchased ina carbon market. They also allow us to accelerate
emissions reduction action, particularly where
alternatives, such as CCUS, are nascent.

Natural climate solutions
Natural climate solutions are conservation,
restoration and improved land management actions
that increase carbon storage or avoid greenhousegas emissions in landscapes and wetlands across theglobe. Combined with innovations in clean energy
and other efforts to decarbonize the world’s
economies, natural climate solutions offer some ofour best options in the response to climate change.
Aramco is exploring the use of natural climate
solutions to generate offsets and credits. Aramco has
planted 13.3 million mangrove trees, along the Arabian
Gulf and Red Sea coastlines and over one million
terrestrial native trees and we aim to plant millions
more. As well as restoring habitats that encouragebiodiversity and act as a natural barrier to coastal
erosion, mangroves also form a natural sink for CO2.

Putting a price on carbon would be a key enabler
for motivating investment in emerging technologies
that are currently not cost-effective, such as CCUS.
Aramco favors and supports efficient and costeffective ways to set a carbon price. We believemarket mechanisms that address climate change andsustainable development, and take the economic
circumstances of developing countries into account,offer a good balance between driving emissions
reductions and supporting economic growth.
To be effective, any framework or market-based
mechanism should cover all emitting sectors and alltypes of GHG emissions, recognize carbon intensity
differentiation, equity, and revenue neutrality, as
well as transferability of potential credits.
Voluntary markets enable private investors,
governments, non-governmental organizations,and businesses to purchase carbon offsets tooffset their emissions.

The Riyadh Voluntary Exchange Platform
Ahead of COP 26, Saudi Arabia committed todevelop a trading platform for carbon offsets
and credits produced in the Middle East and North
Africa. The Riyadh Voluntary Exchange Platform isaimed at helping countries and companies within
the region support Paris Agreement climate goals.
Aramco is actively engaged in supporting the
Platform’s development and has signed an MoU
with Saudi Arabia's PIF to become an inauguralmember of the first carbon market in the
Middle East.

To develop useable, and potentially tradable,
offsets Aramco plans to develop baselines,
confirm methodologies and establish third-party
measurement and verification of carbon stored
in mangroves and other trees being planted in
Saudi Arabia and internationally with partners.

Carbon offsets voluntary market demand — global
GtCO2e2030 range: $21 billion — $42 billion

1.6
TSVCM1 Low case (1.00 GtCO2e per year)
TSVCM High case (1.50 GtCO2e per year)

1.4+24% CAGR
0.4

1.2
1.0

0.3

0.8

0.2

0.6
0.4
0.2
0.0

1.

0.0

0.0

16

17

0.1

0.1

0.1

0.0

0.0

0.1

0.2

0.2

18

19

20

21

22

23

0.0

0.1

0.3

0.3

24

25

0.1

0.1
0.4

0.5

26

27

1.0

0.8

0.6

28

29

30

TSVCM — Taskforce on Scaling Voluntary Carbon Markets.

Saudi Aramco Sustainability Report 2021

47

Safe operations
and people
development
Safety is a core value of Aramco and an integral
part of Aramco’s culture. We are committed toproviding a safe and respectful working
environment for all with the appropriate safety
procedures and policies in place on-site andwithin the community. And we are committed
to supporting and empowering our workforce.

48

Saudi Aramco Sustainability Report 2021

Overview

Climate change
and the energy
transition

Safe operations
and people
development

Minimizing
environmental
impactGrowingsocietal value

Data

Why it is important

Alongside delivering a healthy, safe, and rewarding career for our
employees, our ability to maximize value is dependent on developing
our own workforce and the next generation of skilled workers.

Our ambition

Our goal is to provide a safe environment and provide our employeeswith fulfilling careers through best-in-class training and education
opportunities to equip them with skills to prepare for the future.

Our approach

We focus our efforts on promoting safety, diversity and inclusion,
occupational health and mental well-being, and upholding strong
safety standards, human rights and labor principles.

Our plans

There are three key dimensions to prepare the workforce of the
future and to support the Company's growth ambitions;• continuous improvement in safety in the working environment
and around our operations by investing in technological solutions;• recruiting a diverse workforce to embrace cultural dexterity in
an increasingly globalized world; and• advancing our workforce's technical and professional skills via
best-in-class education and training opportunities.

Material topics

Relevant UN SDG

Relevant metric

Process safety andasset integrity

Number of Tier 1 process safety events – pg 50.

Workforce protection

Number of fatalities – pg 50.
Lost time incident (LTI) rate ((Number of LTI cases x
200,000)/total work hours) – pg 50.
Total recordable case (TRC) frequency (Total recordable
incidents x 200,000/total work hours) – pg 50.

Labor practices

Female (%) of total employees – pg 57.
Employees (% of total employees) receiving regular
Performance Reviews – pg 90.
Female employees (%) in leadership position – pg 57.
Number of graduates – pg 58.
Number of apprentices – pg 58.
Number of interns – pg 58.

Ethics, bribery
and corruption(Compliance)

Number of allegations – pg 55.

Human rights(our people)

Human rights is a material issue that has a broad
relationship with various KPIs and has a strong impact
on our day-to-day business and operations, therefore
we are applying a deliberately phased approach toensure the quality and integrity of our data capture
and target-setting processes, thus for 2021,
there are no publicly reported KPIs.
For more details on relevant metrics
see page 88

Saudi Aramco Sustainability Report 2021

49

Safe operations and people development continued

Workforce health and safety (H&S)

Safety performance

Safety is a corporate value and drives us toproactively identify and mitigate hazards toensure the safety of operations, avoid businessinterruptions, and most importantly, to ensure
the safety of our workforce and communities.

The Company benchmarks its safety performanceusing industry recognized performance metrics
against industry peers, with performance targets set
in line with industry practices. Safety performance ismeasured and tracked through KPIs established by
the HSSE Committee and reported to the
Sustainability, Risk and HSE Committee. We monitor
our total recordable case (TRC) frequency, which
includes occupational injuries and illnesses resulting
in medical treatment, restricted duty, lost time, andfatalities.

Operating in harsh environments comes with
inherent risks, which is why our commitment tothe safety of our people is a core value.
Our proactive approach to safety is supported byworld-class technical engineering and operating
standards, and technological innovation. Crucially,
we learn from the past by rigorously investigating
any incidents and swiftly implementing appropriate
corrective actions. Complementing this is ourGlobal safety policy and management system thatbuilds awareness and capacity for our workforce
and contractors.
During 2021, we continued to improve our H&S
processes and culture launching a year-long andmultilingual Company-wide safety campaign
focused on the Company’s Lifesaving Rules — a setof eight rules to prevent situations or events that
accounted for over 90% of all injury-causing
incidents over the past decade.
The governance of our H&S is provided by the Board
Sustainability, Risk and HSE Committee, which provides
strategic direction and monitoring on health and safety
matters. Please refer to page 119 in our 2021 Annual
Report for more information on this committee.

Safety performance

Tier 1 process
safety events
Total recordable
case frequency
Lost time
incident rate
Number of fatalities

20211

20202

20192

11

9

4

0.054

0.044

0.059

0.017
13

0.011
13

0.016
6

The Company has a target of zero fatalities.
Regrettably, one contractor died when he was struck
by an unsecured beam during a lifting activity at a
non-industrial housing construction site. We regret
this loss and offer our condolences to the contractor’sfamily. We are determined to learn from this incident.
As with all of our major safety incidents, weundertook a full investigation to identify root causes,
spread the lessons throughout our organization anddeveloped action plans to do everything possible to
avoid reoccurrence of such incidents.

Hazard analysis
In 2021, our wholly-owned, US-based refinery
business Motiva Terminals & Pipelines process
safety team initiated a comprehensive hazard
analysis at its 26 equity terminal locations
designed to identify and correct potentiallyhazardous site conditions.

50

1.

As part of ongoing improvements in our ESG data controls, consolidation and validation processes, for all the 2021 performance data in this table,
the reporting boundary is extended to now include entities in our operational control. Please refer to page 90 for more details on our reporting
boundaries.

2.

For 2019 and 2020, the reporting boundary was Company in-Kingdom only. Please refer to page 90 for more details on our reporting boundaries.

3.

This figure has undergone external limited assurance in accordance to the ISAE 3000 (revised) by EY. The assurance report can be found online here.

Saudi Aramco Sustainability Report 2021

Overview

Climate change
and the energy
transition

Safe operations
and people
development

We had 11 Tier 1 process safety incidents during2021 compared to 9 in 2020. Our reporting
boundary was expanded from in-Kingdom whollyowned operated assets in 2020, to include entities
under Saudi Aramco operational control in 2021.
Out of the 11 incidents, 8 incidents were in-Kingdom
wholly-owned operated assets and 3 incidents werein entities under Saudi Aramco's operational control.
None of the Tier 1 incidents in 2021 resulted inoperational interruption or loss of life and mostof them were minor in nature with 3 resulting
in injuries.
Aramco has a comprehensive lessons learned systemthat disseminates the learnings across all businesslines and operations. The system was enhanced in
2021 with a brand-new provision to deep-dive into
process safety incidents. This provision “Learningfrom Incidents Series” is structured to highlightincident failure mechanisms, timelines, causal
factors, root causes and major recommendations
to prevent reoccurrence.

Minimizing
environmental
impactGrowingsocietal value

Data

Safety management system
Our Safety Management System (SMS) is the driverof our commitment to safely manage our Company
business, from complex offshore operations toresearch facilities. It provides a framework to helporganizations fulfil their safety and loss prevention
expectations.
The SMS was developed based on a comprehensive
benchmarking exercise with industry peers andrecognized international safety management
frameworks. The SMS was further evaluated byan independent third-party and found to becomprehensive, mature, and composed of a broadbased set of expectations governing how safety is
managed. By addressing each expectation, we canhelp achieve Aramco’s commitment to being an
industry leader in safety. In following this approach,
we define and set direction for loss prevention
activities, forecast and allocate resources, andconsistently deliver improved safety performance.

Insurance asset risk analysis
Each year, a selection of Aramco’s facilities
are risk assessed by senior engineers fromthe Company’s insurance broker to develop
marketing report utilized by the insurance
market. These surveys focus on physicalconditions and operational practices, and allow
insurers to understand the overall risk qualityof our assets.
The 2021 survey commended company
practices relating to site spacing and layout;
facility inspections; preventive maintenanceprograms; and Safety Management System
implementation, monitoring, and performance
KPIs; and rated the surveyed facilities as ‘Above
Standard’, which is the highest rating achievedby peer company facilities.

Saudi Aramco Sustainability Report 2021

51

Safe operations and people development continued

Safety management assurance

Emergency preparedness

We believe our Safety Assessment protocols
effectively measure how our business organizations,JVs and affiliates manage their safety. These
corporate safety assessments — internally referred
to as Loss Prevention Compliance Reviews (LPCRs)— are conducted on a predetermined frequency
following a risk-based criteria that considers several
safety factors such as the risk profile and safety
performance. In 2021, 52 LPCRs were carried out.

We are committed to the prevention of incidents,
while also remaining ready to respond to
emergencies, business continuity, and crisis events
when required. Our Global Company Safety Policy
addresses emergency preparedness and is placed into
action under the corporate SMS. Implementation of
preparedness expectations is achieved via corporate
requirements documentation. These requirements
include assigning roles and responsibilities, risk
assessments, equipment and facility assurance,
pre-incident planning, emergency response plans,
stakeholder notification protocols (internal andexternal), emergency reporting mechanisms,
personnel training, organizational exercises and drills,
and continuous improvement, including after action
reviews and investigations.

Under the LPCR process, the Company deploys its
in-house subject matter experts to independently
assess the SMS and compliance programs, including
in-depth field reviews to verify the system’s
effectiveness and the level of implementation.
At year-end, we conduct an in-depth analysis
on the data gathered from these safety assessments
generating compliance trends, focus areas, lessons
learned, and action plans. The results are presented
to the Company’s HSSE Committee to review andfurther improve our safety performance within theirareas of operation.

Safety excellence
In 2021, our wholly-owned, US-based refinery
business Motiva was recognized by theInternational Liquid Terminals Association(ILTA) with the organization’s 2021 Safety
Excellence Award. It is the seventh consecutive
year that Motiva’s Terminals & Pipelines teamhas received a safety award from ILTA.

Contractor Safety
We have a comprehensive Contractor Safety
Management Program, which includes a contractor
screening process, contractor evaluation, selection,
continuous effective site supervision, safety
communication, and field assessments of, andimprovements to, contractors’ own safety
programs. We document contractual safety
requirements for all our contractors in the Contractor
Safety Administrative Requirements section of theConstruction Safety Manual (CSM). Our fundamental
goal is that contractors perform their tasks at asafety level consistent to that of our employees.
Our contractor safety strategy comprises four
foundational elements:• Improving engagement and communication
with contractors;• Carrying out in-depth assessments;• Providing credible safety performance metrics; and• Evaluating contractor safety governing processes
and procedures.

52

Saudi Aramco Sustainability Report 2021

Overview

Climate change
and the energy
transition

Safe operations
and people
development

In 2021, we spent significant time and effort todevelop what we believe is a world-class well-being
program for the Aramco contractor workforce,building on our ongoing Contractor Camp
Environmental Health Inspection Program. The
new program encompasses four key elements:• 24/7 Hotline and counselling;• Well-being assessments;• An online platform, including educational content;and• A well-being awareness program.

Minimizing
environmental
impactGrowingsocietal value

Data

The adjacent platforms were created to bettersupport our contractors, who come from manydifferent countries and are often working without
the support that families normally provide. Focused
initially on mental health, we conducted mental
health training sessions and well-being awarenessmaterials in seven languages. We anticipate the fullprogram will be in place by year-end 2022, and wewill report on its progress in our future Sustainability
Report.
The Contractor Camp Environmental HealthInspection (CCEHI) program has been operational
since 2012 and focuses on the continuous
improvement of health and well-being conditions incompany contractor accommodation in the Kingdom.
The program uses a risk-based approach andmonitors camp conditions quarterly. Major findings
are highlighted in the company tracking system andare monitored until closure.

What are we doing?

SafeLife Solution
SafeLife Solution (SLS) provides contractors withthe ability to manage their own safety whileproviding the Company’s representatives withfull oversight and monitoring capabilities. SLS
is fully mobile-compliant on both iOS andAndroid devices, enabling real-time access fromthe Company’s and contractor work sites. The
system has been successfully deployed in thefield and will be the hub for all safety processes
in a single corporate application that fully
serves the Company’s safety needs for both
employees and contractors, and enables
accurate benchmarking against international
oil and gas companies.

Saudi Aramco Sustainability Report 2021

53

Safe operations and people development continued

The future of safety
Digital transformation in safety
As the Company has embarked on digitaltransformation, a number of high-impact andproven technologies were adopted to drive
safety performance.
We continue to seek out new and innovative ways
to improve the safety of our people, while also
promoting recognition of those leading the way with
implementing new and sustainable safety solutions.
Examples piloted include:• Auto Well Space Out initiative, a smart wellsolution that safely shuts down and shuts in a wellin the event of an uncontrolled flow to the surface.
Its goal is to eliminate human error in well control
situations, providing additional protection to rig
employees, nearby communities, and to the wider
environment.
• Well Tubular Safety Program applies machinelearning and predictive solutions that prevent
tubular failures and hydrocarbon emissions to thesurface or underground aquifers. Not only does
this enable well casing leaks to be predicted, but it
also forecasts the safe lifespan of wells to prevent
tubular failures.
• Portable, Exposure-free Multiphase Flow Meter(MPFM) liquid referencing initiative minimizes
personnel interaction with sweet and sour crude
production, while also reducing their exposure
to potentially toxic material. The meter has
allowed logistics and transportation needs tobe streamlined, leading to cost avoidance and areduction in overall risk, and has proven to be so
successful that it is currently being implemented
across the Company.

Safe operations

Human rights and labor principles
in the workplace
We believe all people deserve to be treated with
dignity and respect, and we recognize our role as aprominent corporate citizen in promoting a positive
culture around recognizing and upholding humanrights in the workplace.
We respect internationally recognized human rights
standards everywhere we operate, in particular
the Universal Declaration of Human Rights, theFundamental Conventions of the International
Labor Organization, the UN Guiding Principles on
Business and Human Rights, and the human rights
and labor principles of the UN Global Compact.
We are committed to respecting and upholding
employees’ rights and ensuring that our employees
are not subject to abusive or inhumane practices. We
are opposed to all forms of slavery and exploitation,and child labor across our supply chains.
Our Code of Business Conduct sets out the rules
for responsible behavior and ethical conduct.
Employees are free to voice their concerns freefrom any forms of retaliation. Just like our own
performance continues to evolve, we expect andsupport our suppliers to advance their human rights
efforts. In these efforts, we expect and support our
suppliers to engage their respective supply chains.
Our Company has a global privacy and dataprotection policy to protect the “personal data”
of our employees, contractors, and certain otherthird-parties. Many countries where we operate
have specific laws and rules on how to treat personal
data. We seek to comply with these laws and rules
wherever they apply to our business.
Specific topics related to human rights are overseen
by committees headed by executive management,such as our HSSE Committee, Sustainability Steering
Committee, HR and Corporate Services Committee,
and the Citizenship Executive Committee.

At Motiva, our wholly-owned refinery business
Motiva based in the United States, more than
900 employees are represented by two US
trade unions. These represented employees
work together with management andcontractors to ensure Motiva’s operations run
safely. Working with union leadership at boththe national and local level, Motiva successfully
executed a new three-year union agreement
for its refinery personnel in early 2022.

54

Saudi Aramco Sustainability Report 2021

Overview

Climate change
and the energy
transition

Safe operations
and people
development

Employee relations
Employee relations are governed by local labor
laws, corporate policies, Code of Business Conduct
and Company values. To promote business ethics
and transparency, Aramco operates a Workers
Committee, managed by a voluntary team of elected
employees; an Employee Grievance Mechanism; andconducts regular employee engagement surveys.
The grievance process for employees is a channel
to raise issues and voice concerns, where we ensure
all items raised are fairly and objectively resolved.
Speaking up is an employee right and will not
result in disciplinary action or adversely impact
an employee’s career.

Employee engagement
We measure employee engagement throughcorporate-wide biannual census surveys launched to
all Company employees. The survey consists of fifty
benchmarked questions, which are categorized bydimensions that influence employee engagement;
as well as one open-ended question.
Our last employee-wide engagement survey wasin 2020, with the ongoing challenges the pandemicpresented, Aramco conducted a survey focused on
both “Well-being and Engagement” to understandthe impact of COVID-19 on the employee’s
emotional health. Results released in early 2021
found strong employee engagement at 85%, with
a 95% participation rate.
As an outcome of an analysis of the results of thesurvey, a Company-wide “Emotional Health andWell-being Program” was implemented. The relatedroadshow brought leading well-being experts toindustrial remote locations, to create awarenessabout emotional health and to introduce techniques
and resources for effective self-management andresiliency.

Ethics and complianceAramco has and continues to maintain zerotolerance for unethical conduct, including but notlimited to bribery or corruption in any form; andexpects our employees and associated third parties
to comply with all internal policies, procedures andapplicable laws prohibiting bribery and corruption.

Saudi Aramco Sustainability Report 2021

Minimizing
environmental
impactGrowingsocietal value

Data

Our Code of Business Conduct is the foundation of
our Compliance program which includes specificprinciples regulating Anti-Bribery and Corruption.
Aramco has introduced an electronic training
program for our Code of Conduct enterprise-wide
and is mandatory training for all employees. The
Code is supported by a suite of compliance policies
and implementing procedures and guidelines. The
suite of compliance policies includes our corporate
Anti-Bribery and Anti-Corruption Policy, as approved
by Aramco’s Board of Directors, which expressly
prohibits bribery and corruption in all its forms.
Several supporting procedures have been developed
to operationalize and support the Anti-Bribery andAnti-Corruption Policy, including but not limited toprocedures for third-party due diligence, gifts,
meals, entertainment and travel.
We also maintain an anonymous 24-hour hotline(our “General Auditor Hotline”) that is open to all
our stakeholders (ranging from our employees toour suppliers) to report any suspected misconduct,
including allegations related to bribery or
corruption. Information about the hotline is available
on Aramco’s publicly accessible webpage, whichenables reporting via email, telephone, facsimile,or via the Company’s intranet site. Aramco has zerotolerance for retaliation, in any form, for good faithreporting of suspected misconduct. As part of ourcontinued enhancements to our complianceprogram, we maintain committees to review
findings of misconduct committed by personnel or
third parties to ensure timely implementation of
appropriate and consistent remedial measures.
In 2021, we received 539 allegations (2020: 619),
33 of these cases were investigated for breach of
the Aramco Code of Conduct. Allegations had spikedin 2020 due to concerns over health and safety,
timekeeping and supply chain concerns that were
impacted by COVID-19. The overall trend points
to a consistent increase (versus 2019: 507) in the
allegations received through the hotline. This has
been partly driven by management’s message ofzero tolerance for unethical behavior and insistence
for all to report on incidents, which is supported byeffective whistle-blower protection, anti-retaliation
policies, ongoing fraud prevention and ethics
awareness campaigns.

55

Safe operations and people development continued

Diversity & Inclusion
We employ thousands of staff from all over theworld, across more than 85 nationalities, and areproud of our strong mix of cultures. A diverse
workforce not only encourages a global perspective;
it fosters innovation, collaboration, and respect. We
are committed to nurturing a welcoming, respectful
and genuinely inclusive culture. Attracting andcultivating the best talent is a priority, and we regard
individual differences as opportunities for creativity
and growth.
Diversity has been a major focus area for Aramco
over the past few years with particular attention
paid to increasing the number of female employees
and employees living with disabilities in our
workforce. In support of the Kingdom’s ambitions
to increase the number of women in the workplace,
we have set a target to more than double thenumber of Saudi Aramco's female employees
in-Kingdom by 2030, and with 10% of in-Kingdom
leadership positions to be held by women.
In 2021, we achieved the following:• Benchmarked best practices across the industry
through partnerships with Catalyst, Business
Disability Forum, and committed to the Valuable
500 pledge; a commitment to putting disability
inclusion on the business leadership agenda.

• Partnered with an international school to establish
an in-Kingdom center to provide therapeutic andeducational services for individuals with special
needs (children and adults). These programs help
to increase access to work and live independently.
• Enhanced our D&I operating model through thecreation of the Project Management Office (PMO)
and a Corporate HR Working Committee with afocus on D&I. In addition, launched the D&I
Strategy 2021 Roadshow to accelerate
implementation across the Company.
• Signed the G20 Alliance pledge as an advocate,
which enabled a D&I external playbook to be
published to share the best practice of Saudi Aramco.
• Increased the levels of our females direct hires to 31%.
• Reached female students representation andparticipation of 50% for the Summer Enrichment& Tomooh programs, 44% in our Internship
Programs and 48% in our College Preparatory
Program (CPP).
• Continued our support for the STEMania
program for school-age girls, offering university
scholarships and sponsoring young Saudi women
to pursue degrees in science, technology,
engineering, and mathematics.

• Hired more people living with disabilities than thepast three years combined.

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Safe operations
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development

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environmental
impactGrowingsocietal value

Data

Investing in our workforce
Female employees in leadership position

3.1%

1.

2.1%

2019

2.7%

2020

Female employees

3.1%

2021

5.6%

4.9%

5.1%1

2019

2020

5.6%1

2021

This figure has undergone external limited assurance in accordance to the ISAE 3000 (revised) by EY. The assurance report can be found online here.

Saudi Aramco Sustainability Report 2021

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Safe operations and people development continued

Number of graduates
1,447

1,069

1,447

To attract and nurture young Saudi talent, Aramcoruns a variety of programs:

460
2019

2020

2021

Number of apprentices

1,001
٢٠١٩

٢٠٢٠

1,369

٢٠٢١

Number of interns
1,922

1,922

58

1,089

2019

• Apprenticeship Program for Non-Employees(APNE), introduced in 1988, is designed to provide
training to Saudi high school graduates to preparethem for entry-level jobs within Aramco. The
program participants have the skills necessary to
be successful in their future jobs. The training anddevelopment of high school graduates has always
been a high priority at Aramco.
• College Degree Program for Non-Employees(CDPNE) is a four/five year training assignment
offered to non-employees at academic institutions
leading to a college degree.

2,306

1,369

Education and training
We invest heavily in talent development. Employees
at all levels are encouraged to improve theirsector-specific knowledge and competencies
through our professional, industrial, and national
workforce development programs.

641
2020

• Professional Development Program (PDP),
established in 1974, is a graduate program toprovide a strong foundation for young professionals
to realize their potential and deliver real businessvalue. It highlights Saudi Aramco’s core businessvalues and ethics, expands graduates’ knowledge ofthe different organizations within the Company via
secondments to rotate across different departments,
and illustrates the complex inter-relationships of theCompany’s vast operations.
• Construction Safety Diploma Program, accreditedby TÜV Rheinland, and administered by National
Industrial Training Institute, is a two-year program
designed for men and women seeking aprofessional role as safety officers/inspectors.
Aligned with Saudi Aramco’s Construction Safety
Manual, this customized program that equips our
young graduates with the skills and tools necessary
to become successful safety practitioners.

2021

Saudi Aramco Sustainability Report 2021

Overview

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and the energy
transition

Safe operations
and people
development

Minimizing
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impactGrowingsocietal value

Data

What are we doing?

Unlocking the promiseof youth
Saudi Arabia, and the wider Middle East, has
one of the youngest populations in the world.
Meeting the career expectations of so many
young people is a challenge. We welcome thischallenge and see it as an exciting opportunity
for us to deliver the workforce of the future.
This is why we invest in training academies,
academic sponsorships, and a multifaceted
outreach program.
Within Aramco, our Young Leaders Advisory
Board (YLAB) program serves as a bridge
between the youth of Aramco and executive
management.
Through a wide-range of engagement andadvisory strategies, our YLAB team of young
people have the opportunity to unlock theirpotential, voice their concerns, and provide
solutions to complex corporate issues.
YLAB's reach extends beyond the Kingdom, withengagement events at our international offices,such as the Boston Research Center and the
Aramco Overseas Company office in London.

• Aramco participated in establishing 16 National
Training Centers (NTCs) across 10 cities, with morethan 34,500 graduates since 2008, as part of an
initiative that serves the Company’s corporate
objective to “contribute to the developmentof the Kingdom's economy,”. The NTCs provide acompetent Saudi workforce covering a wide range
of industries, including petroleum services, drilling
and workover, construction, aviation, hospitality
and facility management and finance, witha clear focus on the future role of Saudi women.
Altamayyuz Academy is the initiative’s latest
initiative in 2021 (for more information, pleaserefer to page 79).

Saudi Aramco Sustainability Report 2021

Due to the lockdown and requirement for partial
remote working as a result of COVID-19 in 2020,
there was a fall in number of interns, apprenticeand graduates.
In 2021, as we adjusted our ways of working to copewith the risks of COVID-19 and with the positive
impact of the aforementioned initiatives, we had anincrease in our intake of young workers andwelcomed 1,447 graduates, 1,369 apprentices and1,922 interns.

59Safe operations and people development continued

Workforce well-being

COVID-19

A good working environment is essential toemployee health, operational safety, and employee
engagement. We provide high quality medicalcare across our locations, proactively managing
risks to minimize harmful exposures to our
workforce and ensure that health is an integral
part of our approach to employee well-being.

Aramco’s resilience and ability to overcome a range
of infectious diseases over the years gave ourbusiness a critical advantage: perspective. We
persevered through the Severe Acute Respiratory
Syndrome (SARS) in 2003, H1N1, the “swine flu,” in2009, and the Middle East Respiratory Syndrome(MERS) in 2012.

The occupational health and well-being of ourworkforce is outlined in our Health Protection Policy,
and applies the same standards and similar programs
across our supply chain. We expect our suppliers tomaintain high standards for occupational health inways similar to our approach, and throughout theirvalue chain when performing work for us.

Having captured lessons from the previous healthcrises, we had some perspective and were positioned
better to build on our previous experience to tackle
the novel coronavirus (COVID-19) pandemic.
Regretfully, a number of the Company's employees
and contractors died as a result of contracting
COVID-19 over the past two years.

Our Work Life Support Program provides
comprehensive services to support the emotional
well-being of our employees and their families,
featuring 24-7 access to a global network of clinicalcounsellors, phone-based mindfulness and life
coaching programs, and a digital behavioral healthcoaching program for self-paced support. In addition
to our offering of retirement and savings benefits,
we support the financial literacy of all employees by
providing access to financial well-being courses andonsite financial advisors. Additional work-lifebalance support includes childcare, fitness andleisure facilities, nutrition and fitness coaching.
Facilities are designed to be accessible for our
employees living with disabilities.

Aramco proactively supported the welfare of ouremployees, their families and our wider communities
throughout the pandemic. 2021 witnessed thelaunch of a rapid vaccine rollout program, which
included employees, employee dependents, andstudents engaged in our sponsored training anddevelopment programs.

Mental health

Our Company’s partnership with JHAH has been
an invaluable contribution to our response, andinstrumental in ensuring safety and well-being,
and enabling sustained business operations.
We made two doses of the COVID-19 vaccination
available to all employees who chose to get
vaccinated and as at early 2022, vaccination
amongst eligible employees reached 100%.

The Company’s semi-annual engagement survey,
which in 2020 was developed in partnership with John
Hopkins Aramco Healthcare (JHAH), to address impactsof COVID-19, informed the rapid implementation of an“Emotional Well-Being Program.”
A Mental Health Toolkit has been established to help
people normalize their experience during COVID-19
by teaching strategies, techniques, and interventions
to maintain emotional well-being and mental health.
Furthermore, the Emotional First Aid e-learning
course has been developed by JHAH experts inpartnership with our e-learning specialists to help
employees to:• Learn strategies and techniques to strengthen
emotional resilience;• Discover interventions to help manage stress or
feelings of depression; and• Gain emotional first aid skills to help others suchas children or elderly parents.

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Data

Living with COVID-19
We continue to keep the safety and well-being of ouremployees and their families, contractors and theircommunities as priority while ensuring business continuity.

• Contingency response plans which are focused on
mitigation, and continuity in six areas: people, facilities andservices, systems, supply chain, projects and customers; andComprehensive pandemic plans have been developed that
capture lessons learned from the subsequent waves of
COVID. These include:• We stress-test financials, supply chains, and ourcontingency response plans.

• Company-wide task force led at the most senior level;• Business continuity plans and agility to adapt as thesituation evolves;

Saudi Aramco Sustainability Report 2021

We want COVID-19 to not only be a part of Aramco’s
pandemic playbook, but serve as a testament to the reliability
and resilience of our Company’s people.

61

Minimizing
environmental
impactWe strive to conserve natural resources andminimize the environmental footprint of ourbusinesses’ activities by leveraging technology
and promoting industry best practice.

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Saudi Aramco Sustainability Report 2021

Overview

Climate change
and the energy
transition

Safe operations
and people
development

Minimizing
environmental
impactGrowingsocietal value

Data

Why it is important

From biodiversity to emissions, waste management and watertables, industry must ensure that it minimizes its impact on thenatural environment, a common, shared resource for all humanity.

Our ambition

We aspire to not only limit our environmental footprint, but tohave a legacy of projects that improve both natural habitats andshared resources.

Our approach

We are incorporating circular carbon economy principles acrossour value chain — a viable economic prospect for the global
economy. Our Company is seizing this business opportunity byproactively moving to this operating model.

Our plans

We will continue to embed in our strategy and planning theconsideration of environmental protection and circular carbon
economy principles, alongside financial, production, and business
output metrics.

Material topics

Relevant UN SDG

Relevant metric

Biodiversity
and ecosystems

Biodiversity is a material issue that has abroad relationship with various KPIs and has
a strong impact on our day-to-day businessand operations, therefore we are applying adeliberately phased approach to ensure thequality and integrity of our data capture andtarget-setting processes, thus for 2021,
there are no publicly reported KPIs.

Water

Freshwater consumption/withdrawal (million m3)– pg 69.
Hydrocarbon content discharged to water(HC2W) (barrels) – pg 71.

Waste management

Industrial waste generated (metric tons) – pg 66.

Local environmental impact

SOx emissions (kilo tons) – pg 65.
Number of hydrocarbon spills – pg 71.
Volume of hydrocarbon spills (barrels) – pg 71.

For more details on relevant metrics
see page 88
Saudi Aramco Sustainability Report 2021

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Minimizing environmental impact continued

Environmental standards
and regulations
Before commencing a project, we strive to conduct
environmental impact assessments in accordancewith the relevant environmental regulations,standards and Company requirements, including
comprehensive biodiversity surveys in ecologicallysensitive areas, with the fundamental objective ofminimizing impacts. These studies identify potential
environmental impacts, the appropriate actions andmeans to prevent or minimize negative effects, orappropriate actions to increase the project’s positive
returns to the environment.
For any project that requires international funding,we conduct Environmental, Social and Health Impact
Assessments, in compliance with the International
Finance Corporation’s (IFC) Performance Standards.
We follow international best practices and local
environmental regulations to develop project site
closure and rehabilitation plans to minimize theenvironmental and health impacts associated without- of-service plants and affected sites. These bestpractices include mitigation and monitoring plansthat focus on effective site closure, rehabilitation,and restoration. We ensure that final asset disposal
and remedial obligations comply with relevant
environmental legislation, regularly updating closureplans to restore land use for the community.

$800 million

Corporate circular economy roll out program
In January 2021, we commenced the roll out ofa corporate execution plan of Circular Economy.
To facilitate an accelerated and systematic
implementation across Company departments, its
seven principle strategies have been linked to theCompany Operational Excellence system. Multiple
Departments have collectively developed potential
circular opportunities and incorporated them in theirbusiness plan. Moreover, the taskforce team havedeveloped a comprehensive circularity assessment
methodology to measure Departments’ level ofcircularity in terms of key enabling elements aswell as performance measures.

SOx, NOx, and VOCs
We have set design and operational emission
thresholds for sulfur oxide (SOx), nitrogen oxides(NOx), and volatile organic compounds (VOCs)
emissions and have a system in place to monitor
those emissions and ensure that the applicable
Government and Company standards are compliedwith across our activities.
The monitoring system includes a network of
Air Quality and Meteorology Monitoring Network(AMMNET) stations that track ambient air quality.
We plan to include air emissions monitoring in our
newly deployed Emissions Monitoring Solution,
which currently tracks GHG emissions across theCompany, and is linked with the 4th Industrial
Revolution Center.
As our operations utilize sales gas1 as a primaryfuel to fire the combustion units, we are replacing
old NOx burners with low NOx and ultra-low NOx
burners to further reduce NOx emissions.

We are planning to invest $800 million overthe next two years for two major projects
installing Vapor Recovery Units and Vapor
Handling Facilities.

1.

64

Natural gas after processing to remove condensates, CO₂, and liquefied petroleum gas.

Saudi Aramco Sustainability Report 2021

Overview

Climate change
and the energy
transition

Safe operations
and people
development

Kilo tons

204

2019

163

2020

141

2021

With respect to VOCs, we are implementing a vapor
recovery system (VRS) project to minimize emissionsof VOCs from our bulk loading operations, including
new and old refined product distribution depots.
Aramco manages SO2 emissions as part of its
air quality strategy which is covered under theenvironmental master plan. The Company’s internal
design and operational practices are consistent withinternational standards and emissions are monitored
to ensure compliance with regulatory standards.
There is further work required at some of ourfacilities to ensure compliance, which we areundertaking.
We have begun making investments to further
reduce SOx emissions by enhancing sulfur recovery,
for example with sulfur recovery units in refining
and gas plants, in tail gas treatment facilities (TGTU)
at Fadhili Gas Plant and Jazan Refinery. Sulfur
recovery with TGTU is capable of achieving recovery
efficiencies above 99.9% to minimize SO2 emissions.
Performance is forecast to improve further as we rollout TGTU across additional Company assets.

Saudi Aramco Sustainability Report 2021

Growingsocietal value

Data

Waste management

SOx emissions

141

Minimizing
environmental
impactWe employ the waste management hierarchy tomanage Company-generated waste. The wastehierarchy ranks waste management options ina manner that minimizes environmental impacts
and supports circular economy objectives,
which minimizes our resource utilization andenvironmental footprint. Waste is categorized
into three management streams: hazardous,
non-hazardous (including municipal), and inert.
Management options are ranked by their potential
environmental impact, with the highest priority
accorded to waste prevention and reduction,
followed by reuse, recycling, recovery, and proper
treatment and disposal.
Aramco is establishing a joint venture with aninternational partner to develop a waste management
project in the Kingdom. The project is intended to treat
all Aramco municipal and industrial waste generated
in the Kingdom, and to be expanded to other wastes in
the Kingdom and the region in the future.

Industrial waste
To minimize the generation of industrial waste at thesource, we conduct a waste minimization assessment
study as part of a projects’ Environmental Impact
Assessment. The study identifies, at the preliminary
design stage, opportunities to eliminate or minimize
waste generation. As for operating facilities,
Aramco performs waste minimization opportunity
assessments three to five years post commissioning.
In-Company waste management is guided by the
Saudi Aramco Hazardous Waste Code (HWC) which
has been prepared to define consistent requirements
and best practices for the management of Company
waste materials that are considered hazardous tohuman health or the environment due to theirignitability, reactivity, corrosivity, or toxicity.

65Minimizing environmental impact continued

Similarly, the Solid Waste Landfill Requirements
Engineering Standard prescribes the minimum
requirements for the design, site selection,
operation, monitoring, and closure of Class II andClass III solid waste landfills to meet Governmental
landfill design and operation requirements. In 2021,
Aramco generated 158,000 tons of industrial waste(2020: 231,000 tons)
In the fourth quarter of 2021, Aramco developedand endorsed a Corporate Waste Management
initiative that can be used to develop short-, mid-,and long-term sustainable waste management
programs. The strategy includes sustainableindustrial waste management programs
incorporating targets for minimizing waste
generation and disposal to landfills, maximizing
industrial waste recycling and energy recovery
opportunities.

Plastic waste management
Plastic materials have contributed to global
economic growth thanks to their low cost, versatility,
durability, strength, hygiene, and light weight.
Across 2020 and 2021, plastics’ essential benefits tohuman health were vividly illustrated through themasks, gloves, and medical personal protective
equipment, which were essential to combating the
spread of COVID-19.
Simply put, without plastics, the world could notcombat the virus’ spread, including delivering
ventilators and the myriad other medical products
required, such as vaccine syringes and therefrigerators needed to store and protect the vaccine,without significant additional cost and effort.

What are we doing?

Waste monitoring
Aramco has started deploying online analyzers
to enhance monitoring and reporting of ourwaste KPI. The analyzers are linked to theHydrocarbon Discharge to Water (HC2W)
corporate dashboard, supported by our IT
infrastructure, to monitor real-time data andenable facilities to take immediate corrective
actions when non-compliance or process upsets
are observed.

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Overview

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and the energy
transition

Safe operations
and people
development

Minimizing
environmental
impactGrowingsocietal value

Data

What are we doing?

A circular economy
for used plastics
Through SABIC’s TRUCIRCLE™ initiative,
we continue to challenge open-ended value
chains, driving forward a circular economy
for used plastics.
In 2021, Frost & Sullivan, a leading businessconsultancy, named SABIC "Global Companyof the Year" for sustainability practices andcircular economy. SABIC is a founding memberof the Alliance to End Plastic Waste, and it
remains committed to finding innovative
solutions to help transform industry from a
linear economy to a circular one and serving as
best-practice examples that raise the standardsof the chemicals industry as a whole.

Plastics offer a unique combination of durability,
versatility, and low cost, which made them thematerial of choice for many everyday materials.
However, with the wide use of plastic, particularly
single-use plastic, the world urgently needs toaddress the resulting mishandled waste.
Addressing plastic waste in the environment requires
the participation and long-term commitment of all
members of society, including government, civilsociety, consumers, manufacturers, technology
developers, and the finance community. No one
country, company, or community can solve thisproblem on their own.

Saudi Aramco Sustainability Report 2021

Our approach and actions
Our vision is to have an impactful role in eliminating
plastic waste and leakage to the environment.
With our acquisition of a 70% equity interest in
SABIC, Aramco incorporated into its business one of
the world’s largest petrochemicals manufacturers.
For our Company, this ushers in a new era ofinnovation to enhance competitiveness and benefit
customers, employees, and shareholders.
Through SABIC, we are progressively implementing
a sustainable plastic waste management model,
which we expect will result in a greater net positive
impact on business, society, and the environment.

67

Minimizing environmental impact continued

With innovation as a core capability, Aramco and
SABIC are developing novel solutions and alternative
uses for plastic waste. Together we are partnering inresearch, development, and deploying a wide rangeof technology solutions for plastic waste, ranging
from mechanical to chemical recycling and newmaterial design to produce circular plastics: turning
plastic waste into a resource through aggregation,
processing, and recycling through advanced andinnovative technologies.
SABIC launched the TRUCIRCLE™ framework to help
close the loop on plastic recycling. TRUCIRCLE™
encompasses the company’s circular materials andtechnologies, including certified circular polymers
from the chemical recycling of mixed plastic waste.
Aramco has developed technology to repurpose
plastic waste for use in construction applications
such as road paving. For example, we turn local
waste plastic into recycled plastic asphalt for use
in the Kingdom’s road pavement construction andmaintenance. We are also exploring opportunities
to convert mixed plastic waste into fuels, synthesize
gas, hydrogen, and power.
In addition to our individual efforts to address the
problem, we support involvement with collective
prevention efforts directly or via our subsidiaries.
We partner or engage with a range of industry
associations, regulators, and non-government bodies.

Water management
With our roots in Saudi Arabia’s desert climate,Aramco has long recognized the importance ofpreserving water. From an early stage, water
management has been a key pillar in the
Company’s long-term strategy.

68

The Company’s comprehensive water conservation
efforts entail supplementing water supply withalternative sources, implementing water efficient
practices, maximizing wastewater reuse, andminimizing water losses. One of the ways in which
we avoid the waste of this precious resource is byusing seawater as Aramco’s primary source of waterfor pressure support and “sweep” of oil reservoirs.
Our commitment to sustainable use of water
resources is assured through implementation of theCompany Water Conservation Policy, which has
been in place since 2011 and is overseen by HSSE
Committee at the Company-level.
We seek to reduce our dependence on nonrenewable groundwater by using alternative
water sources like seawater, treated sewage effluent,and treated reject streams, including significant
investment in desalination. A testimony to thisstrategy is our large seawater treatment andinjection network of facilities. For example, in late2020, on the western border of Ghawar, what we
believe to be the world’s largest oil and gas field,
five newly constructed giant sulfate removal units
went into operation, allowing us to treat and utilize
seawater instead of groundwater to support oil
production. This 100,000 m2 facility pumps pretreated high-pressure Gulf waters supplied from
Aramco’s Qurayyah Sea Water Plant across thesulfate removal membrane systems prior to injection
into Ghawar’s ‘Ain Dar and Fazran fields.
At Khurais, we commissioned a 60,000-barrel-perday seawater reverse osmosis facility, ending the useof groundwater in plant processes. Developing
unconventional fields can be water intensive, oneof the latest innovative approaches for conserving
groundwater is the use of Treated Sewage Effluent(TSE) for operations at Aramco’s Jafurah
unconventional gas field, the largest non-associatedgas field in Saudi Arabia. To support future
developments of the field, our aim is to build adedicated seawater treatment facility to supply all
water needed for stimulation operations, avoiding
the need to deplete fresh groundwater supplies.

Saudi Aramco Sustainability Report 2021

Overview

Climate change
and the energy
transition

Safe operations
and people
development

Minimizing
environmental
impactGrowingsocietal value

Data

What are we doing?

Sustainable water
management for oil
production
The Qurayyah Sea Water Plant (QSWP) is thelargest operation of its type in the world withan expansive network of facilities across theCompany’s fields. It treats seawater andtransports it to many fields for pressure
maintenance, thus preserving valuable
groundwater and helping protect marine life.
Its scale is unparalleled: its annual maximum
capacity of groundwater savings is equivalent
to the entire industrial sector's annual
groundwater demand in Saudi Arabia.

Company water conservation performance ismonitored through reviewing water conservation
data and key performance metrics, conducting water
optimization studies on capital projects and assessing
Company operating facilities for compliance. In 2021,
the Company’s freshwater1 consumption (FWC) was
33.8 million cubic meters compared to 32.9 in 2020.
The increase in FWC performance in 2021 was mainly
due to inclusion of water use by well completion
activities in upstream operations.

• Establishing and implementing a groundwater
protection program which applies strict measuresthat prevent company operations from impacting
groundwater.

We embed water conservation in our businessapproach and operate multiple programs focusedon protecting our water resources, including:• A value for groundwater is assigned in projects toincentivize the use of alternative sources.

• Establishing procedures for compliance with
discharge standards and regulations.
• Ensuring the safety of drinking water supply forour own and our host communities by following
our Water Safety Plan.

• Conserving water resources and maximizing theiravailability to future generations, including the useof desalinated water at our operating fields.

1.

The total dissolved solids (TDS) concentration of this type of water is up to 2000 mg/L.

Saudi Aramco Sustainability Report 2021

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Minimizing environmental impact continued

Wastewater and discharges to water
Our goal is to avoid and minimize generationof wastewater from operations through project
design and reservoir management. State-of-the-art
simulation models that allow optimal placements ofwells and advanced well completion technologies
minimize water production, reducing the energy
required to process wastewater, thereby lowering
GHG emissions.
We recognize the need for responsibly managing
and treating water prior to returning it to theenvironment. In order to address the challenges
of continually expanding Company operations
and meet stringent environmental regulations,a comprehensive wastewater effluents management
program is in place with the aim of protecting theenvironment and public health.

The Hydrocarbon content discharged to water (HC2W)
KPI is used to continually reduce the levelof hydrocarbons discharged through wastewater
effluents by maintaining a vigilant wastewater
discharges monitoring program. The KPI measures thetotal amount of hydrocarbons released to the surface
water through the Company’s industrial wastewater
discharges and excludes hydrocarbon releases from
accidental oil spill, which are tracked separately.
Performance over the years shows an overall positivehydrocarbon volume trend (reduction) and sustained
performance while maintaining figures withintarget. In 2021, this was 5.4 barrels. This is as a resultof actions implemented by the Company, including:• Pro-active measures to avoid any incidental
discharge in their processes.
• Preventive maintenance of aging equipment.
• Enhanced monitoring and tracking of the KPI
through the HC2W Corporate dashboard.

What are we doing?

Preserving groundwater
We plan to develop the Jafurah unconventionalgas field, a gigantic, 17,000 km2 basin with anestimated 200 trillion standard cubic feet of gas
in place, by combining innovative technologies
with the field’s unique properties.
Jafurah wells are drilled with long horizontal
lateral lengths to maximize hydrocarbon
recovery, optimizing the well’s productivity
in the long-run. In the arid climate of
Saudi Arabia, we will circumvent the need to
draw on precious groundwater and insteadbuild a dedicated seawater treatment facility
to supply enough water for the process.
The treated seawater will be distributed
throughout the field via a 180 km pipeline
network, which will significantly reducewater-hauling truck traffic and result in alower environmental impact and the overall
carbon footprint.

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Overview

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and people
development

Climate change
and the energy
transition

Minimizing
environmental
impactGrowingsocietal value

Data

Spills to the environment

Biodiversity

We proactively manage operations to avoid
hydrocarbon leaks and spills by maintaining asset
integrity throughout their life cycle. This approach
includes prevention, preparedness, and incident
response.

Biodiversity encompasses the variability amongliving organisms including:In 2021, oil spills had a total volume of 14,447 bbl,
including one major oil spill estimated to have a total
volume of 14,000 bbl; one moderate oil spill with a
total volume of 300 bbl; and eleven minor oil spillincidents greater than 1 bbl.

• diversity within species (e.g. genetic variability),
between species, and of ecosystems.

The major spill was at Safaniya-Khursaniya pipeline
corridor that occurred on April 17th, 2021. This wascaused by the burst of an oil pipeline. Around 95%of the spilled oil was recovered for re-processing
through Safaniyah and Manifa facilities. Propercleanup, disposal and restoration was undertaken
to mitigate the spill’s impact and restore theaffected areas.

Number of
Hydrocarbon Spills
Volume ofHydrocarbon Spills(barrels (bbl))

2021

2020

2019

13

6

11

14,447134

38• terrestrial, marine and other aquatic ecosystems;• ecological complexes, andIn Saudi Arabia, there is a rich diversity of wild
animals and plants. There have been 499 speciesof birds recorded in the Kingdom, along with
117 mammal species, 107 reptile species, 266 coral
reef species, 1,230 fish species, eight amphibian
species, and over 2,400 flowering plant species.
In March 2021, the Company’s first Biodiversity
Protection Policy was approved, with the objectiveof achieving a net positive impact on biodiversity
and ecosystem services.
The Company’s commitment to delivering positive
impact biodiversity and ecosystem services in its
operational areas supports the Saudi Green Initiativeand is informed by IPIECA’s guidance and UN SDGs.
We are updating procedural operating instructions
and guidance as well as capacity building,embedding biodiversity project delivery milestones
and conducting research with experts in the field.

Biodiversity protection hierarchy
To achieve a net positive impact on biodiversity weare using the hierarchical approach to mitigationand compensation (where required) for theCompany’s impacts by:• Seeking;• Avoiding;• Minimizing;• Restoring; and where necessary• Offsetting any loss to biodiversity or ecosystem.

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Minimizing environmental impact continued

Marine protection
Aramco welcomes the UN drawing attention to
the vital importance of marine environments andrecognizes the need for action on multiple fronts toprotect life and livelihoods. The projects Aramco haslaunched to protect marine ecosystems are global inscope, with a focus on coral-reef regeneration andmangrove restoration, particularly in the Red Sea
and the Arabian Gulf.
Our scientists and experts have been collecting
valuable information regarding wave height,
currents, dissolved oxygen, water temperature,clarity, salinity and the concentration of chlorophyll,
the pigment that provides energy for photosynthesis.
Aramco is helping the global scientific community
by giving free access to this data to support otherenvironmental projects, and we are alreadypartnering with several international organizations,such as the C4IR Ocean and its Ocean Data Platform,
to further this aim.

Regenerating coral reefs
In terms of our projects, we have supported theregeneration of endangered coral reefs. Aroundthe world, these precious and fragile ecosystems —which provide a habitat for hundreds of marine
species while also forming a natural barrier against
coastal erosion — have become degraded. Thisdamage has multiple causes, including coastal andoffshore development, illegal fishing practices,
pollution, and the rise in sea temperatures causedby climate change.
In the Arabian Gulf, for example, most coral
communities are in the vicinity of offshore islands,
and we realized one of the factors preventing
damaged reefs from regenerating was a lack ofhard ground on which the coral could reform. We
therefore designed and built a series of strong andstable artificial reef structures on the seabed, which
the coral could then recolonize, providing a new
habitat for a wide variety of marine organisms. Ourscientists closely monitor these regenerated reefs,
which we believe have been a great success: fish are
thriving and the variety of marine life has increased,
while the reefs are more resilient.

72

The Saudi Green
Initiative

The Saudi Green initiative encompasses thefollowing ambitious targets:• Increase the share of renewables in theKingdom’s energy mix from 0.3% to 50%
by 2030.
• Reduce carbon emissions by more than 4% of
global contributions, building on an existingcommitment to avoid more than 278 MT of
CO2 by 2030.
• Plant 10 billion trees over the coming decades— this addresses desertification, which is acountry and regional economic risk to theKingdom with an estimate that billions of
Saudi Riyals are currently lost due to dust
storms in the region every year. This tree
planting is equivalent to rehabilitating
roughly 40 million hectares of degradedlands, translating to a twelvefold increase
from current tree cover and meets 1% of
UNEP’s global target to plant 1 trillion trees.
• Increase the percentage of protected areas
to more than 30% of Saudi land area,
representing roughly 600,000 km2, in addition
to launching a number of ambitious initiatives
to protect marine and coastal environments.
We fully endorse and support the Saudi Green
Initiative.

Saudi Aramco Sustainability Report 2021

Overview

Climate change
and the energy
transition

Safe operations
and people
development

Minimizing
environmental
impactGrowingsocietal value

Data

What are we doing?

Mangroves
In January 2021, we opened our Mangrove
Eco-Park — the first facility in Saudi Arabia
dedicated to the preservation of old growthmangrove forests.
The 63 km2 Mangrove Eco-Park protects oneof the last naturally occurring mangrove forestsin the Eastern Province of Saudi Arabia andfeatures the longest mangrove boardwalk in
the country.
The park has also been designed to educate thecommunity — from school-children to families
and visiting tourists — about mangroves andtheir environmental benefits.
In 2021 alone, we planted 7 million mangrove
seedlings.

Nature-based solutions
Nature-based solutions are actions to “protect,sustainably manage and restore natural andmodified ecosystems in ways that address societal
challenges effectively and adaptively, to provide
both human well-being and biodiversity benefits”1.
Over the last decade, Aramco has embraced thisconcept, initially planting two million mangrove
plants along the shores of the Arabian Gulf coast to
restore the coastline. Aramco is now accelerating
efforts in planting mangroves and have increased
the number of planted mangroves in the Kingdom
to over 13.3 million plants along the shores of the
Arabian Gulf and Red Sea.

In 2018, the Company launched an initiative to plant
one million native trees throughout the Kingdom.
This goal was reached in 2021. 26 types of native
tree have been planted and are sustained withexcess treated sewage water.
In addition to benefits for biodiversity, combatting
desertification and restoring coastlines, theseprojects also create natural sinks for CO2. Mangrove
forests, particularly, are one of nature’s mostpowerful ecosystems, living in conditions that noother tree thrives and connecting the land and thesea. They are an important nature-climate solution
towards mitigating climate change and contribute toour decarbonization actions. See also the section on
Natural Climate Solutions (page 47), on this topic.

1.		 IUCN — International Union for Conservation of Nature.

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Minimizing environmental impact continued

What are we doing?

Biodiversity protection• We reserve high quality habitat: Aramco has designatedten sites as Biodiversity Protection Areas covering over
950 km2. Together, these sites protect more than 500 speciesof plants and animals, including at least 55 species orsubspecies that are unique to Arabia. Each of these sites
contains regionally or internationally significant
biodiversity, such as the presence of threatened, migratory,or endemic species. From Shaybah in the south, to Tanajib
in the north, and from Abu Ali in the east to Abha in thewest, these ten protected areas cover a diverse array of
the Kingdom’s unique ecosystems.
• We reduce negative impacts: The Company is continually
improving its operations to ensure our activities minimize
impacts on biodiversity wherever possible and the new
Company guideline on biodiversity protection provides
governance and further protective measures for biodiversity.
• We restore degraded habitat: We have reintroduced locallyextinct species at Shaybah Wildlife Sanctuary, and restored
degraded wetlands at Abqaiq.
• We create new habitat: Over the past two years, theCompany developed nature reserves at Abqaiq and Haradh.

Shaybah Wildlife Sanctuary
The Shaybah Wildlife Sanctuary consists of a 637 km2 fenced
area of near pristine habitat in the Rub’ al-Khali desert
located 11 km west of our Shaybah Residential and Industrial
Complex, which supports internationally significant wildlife.
The perimeter fence helps eliminate key threats at the site,
such as unregulated vehicle access, grazing, littering, andhunting but is designed to be permeable to wildlife.
Abqaiq wetlands
The Abqaiq wetlands of restored wetlands and dune
habitat, which supports native wildlife and migratory birds.
Biodiversity surveys have identified more than 49 bird species,
34 plant species, four mammal species, and six reptile species
that take refuge at the site.
The wetlands were previously impacted by disposal of
unregulated solid waste. Commencing in 2016, we removed
the waste material, fenced the area to prevent additional
dumping, invasive species and installed the Kingdom’s firsttwo birdwatching hides. The area now consists of reedy
wetlands, sand dunes, and a planted tree belt to the westof our Abqaiq community.

• We map and monitor key species: We have created digital
habitat models that identify important biodiversity areas.
These habitat models will ultimately be used to enable
us to identify, prioritize, and reserve high quality habitaton Company land and reduce Company impacts on
biodiversity.
• We invest in biodiversity education and awareness: In 2021
we opened educational visitor centers at the Mangrove
Eco-Park in Tarut Bay and the Shaybah Wildlife Sanctuary
in the Rub’ al-Khali.
• We conduct applied research: We continue to conduct
applied research aimed at ensuring Company activities do
not cause undue impacts on biodiversity. For example, we
continued our collaborative research partnerships with King
Fahad University of Petroleum and Minerals (KFUPM) andKing Abdullah University of Science and Technology (KAUST).

74

Saudi Aramco Sustainability Report 2021

Overview

Climate change
and the energy
transition

Safe operations
and people
development

Minimizing
environmental
impactGrowingsocietal value

Data

Ten protected sites
1. Shaybah Wildlife Sanctuary
2. Rahima Bay Mangrove Eco-Park
3. Abu Ali Island
4. Tanajib Biodiversity Protection Area
5. Manifa Biodiversity Protection Area
6. Abqaiq Wetlands
7.	‘Udhailiyah Biodiversity Protection Area
8.	Abha SSSP Biodiversity Protection Area
9.	Bahra SSSP Biodiversity Protection Area
10.	Madinah SSSP Biodiversity Protection Area

4
5
3

2
6

10
7

1

9

950 km2

8

Overof protected biodiversity

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Growing
societal value
Our early efforts between the 1930s and 1970s
focused on the Kingdom’s infrastructure andindustrial development, including building schools,
highways, providing water and electricity, anderadicating diseases such as malaria. Over theyears, we have gradually shifted our focus tovoluntary citizenship activities, while continuing
to deliver new infrastructure to our communities.
Through the iktva and National Champions
programs, we are facilitating the development of
a diverse, sustainable, and a globally competitiveenergy sector in the Kingdom.

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Saudi Aramco Sustainability Report 2021

Overview

Climate change
and the energy
transition

Safe operations
and people
development

Minimizing
environmental
impactGrowingsocietal value

Data

Why it is important

As Aramco has grown in Saudi Arabia and abroad, we aspireto create value where we operate both directly and indirectly. A
thriving local community and robust local supply chain are essential
components of our business success. This approach proved its worthwith our ability to effectively respond to a potential disruption to ourbusiness, including from COVID-19 and attacks on our infrastructure.

Our ambition

Through the iktva and National Champions programs, we
strive to facilitate the development of a diverse, sustainable
and globally competitive energy sector in the Kingdom, while
adding robustness and efficiency to our supply chain.

Our approach

We develop and invest wherever we operate (including in theKingdom’s domestic oil and gas ecosystem) to enhance thereliability of our supply chain and optimize operational costs andinventories, strengthening our ability to meet our commitments
to customers around the globe.

Our plans

We will continue to support local industry and JVs to achieve ourgoal to localize 70% of expenditure for goods and services.

Material topics

Relevant UN SDG

Relevant metric

Labor practices

Saudization (%) – pg 78.

Human rights (local
communities)

Human rights is a material issue that has abroad relationship with various KPIs and has
a strong impact on our day-to-day businessand operations, therefore we are applying adeliberately phased approach to ensure thequality and integrity of our data capture andtarget-setting processes, thus for 2021,
there are no publicly reported KPIs.

Community and society

Social investment (SAR millions) – pg 84.

Economic contribution

Payments to Government (USD millions) – pg 86.
Total R&D expenses (USD millions) – pg 44.
Direct economic value generated and distributed(SAR millions) – pg 92.

National content

Iktva score (%) – pg 79.
Saudization of service contracts (%) – pg 79.
Saudization of construction contracts (%) – pg 79.

For more details on relevant metrics
see page 88
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Growing societal value continued

Supporting the local economy
Saudization — nurturing local talent
where we operateWith our headquarters and energy resources
found predominantly in Saudi Arabia, we have along-standing commitment to create employment
opportunities for Saudi Arabian nationals, both
directly and indirectly through our local sourcing
strategy (see page 79).
Under the Nitaqat program, Aramco has beenclassified under the “High Green” (Platinum)
category, which means that Aramco complies withthe current Saudization requirements.1
Our Local Workforce Development Department
team is engaged in multiple activities acrossthe Company and actively measures complianceand provides consultation and support toimprove Saudization.

Building capabilities in Saudi Arabia
Beyond boosting local employment in Saudi Arabia,
we have the iktva (in-Kingdom total value add)program, which provides tangible benefits to theCompany and Kingdom, including during the recent
global pandemic. Localized supply chains enable us
to maintain operations with minimal disruption.
Many of Aramco’s supply chain partners continued
to build and start-up facilities in-Kingdom despite
the economic downturn, ensuring the provision of
supplies and services to the Company and retentionof Saudis in the workforce. Billions of dollars ineconomic activity that historically would have left
the Kingdom instead remained to serve the interestsof the Company and support the local economy.
In 2021, the iktva program achieved 59% local
content in our supply chain, marking a significant
increase on the 35 percent when iktva was launchedin 2015.

1.

78

Since the launch of the iktva program in 2015,
the Kingdom's local supply chain has
experienced significant improvements
including:• 300% increase in the local purchases of goods
and services by the Company’s suppliers;• Twenty-fold increase in investment by theCompany’s main suppliers in developing
local partners;• 300% increase in our suppliers’ investments
in research and development inside
Saudi Arabia;• Average growth of 20% in Saudi
compensation and 30% growth in local
workforce training and development;• 50% increase in Saudization rate accompanied
by more than double the percentage of Saudi
females in Aramco’s supply chain;• 50% annual growth in SME development by
suppliers; and• Helping create a competitive industrial base in
the Kingdom that is now exporting to morethan 40 countries with a 70% increase from
Aramco suppliers.

90.5%

At December 31, 2021, 90.5% of the Company’s
employees were Saudi nationals (89.6% in
2020, 88.5% in 2019).

A series of governmental controls (incentives and restrictions) on private companies in the Kingdom that began in 2011 designed to have them
employ Saudi workers.

Saudi Aramco Sustainability Report 2021

Overview

Climate change
and the energy
transition

Safe operations
and people
development

Iktva
Percentage of procurement spend within Saudi Arabia

55.8%

59.0%

57.5%

59.0%

Growingsocietal value

Data

In 2021, we announced a major expansion of theiktva and National Champions programs. The
Aramco Namaat Industrial Development Program
is focused on capacity building in four key sectors:• Sustainability;• Technology;• Industrial and energy services; and• Advanced materials.

2019

2020

2021

Saudization of construction contracts
Percentage of construction Saudi contractors relative to the total
construction contractors workforce in Saudi Arabia

25.6%

Minimizing
environmental
impact

21.8%

21.6%

2019

2020

25.6%

2021

Namaat means collective growth in Arabic and theprogram aims to tap into the vast opportunities
available in Saudi Arabia to create new value, anddrive economic expansion and diversification withlocal and global partners.
By leveraging a range of finance, funding, tax
and regulatory incentives available through thegovernment’s Shareek program, with Namaat,
Aramco aims to drive competitive advantage andachieve benefits for the environment, our Company,
our partners and for the wider energy andchemicals sector.

$100 billion

To date, iktva has contributed an estimated$100 billion to Saudi Arabia’s economy.

Saudization of service contracts
Percentage of service Saudi contractors relative to the total service
contractors workforce in Saudi Arabia

51.4%

56.6%

Saudi Aramco Sustainability Report 2021

51.0%

56.6%

What are we doing?

Altamayyuz Academy
2019

2020

2021

Altamayyuz Academy, founded in 2021, is an
initiative of Aramco to partner with the world’s
leading investment banks, accounting firms andthe Technical & Vocational Training Corporation
to create an academy to educate the Kingdom’s
future finance leaders.

79Growing societal value continued

What are we doing?

Local and global
partnerships
Iktva has created a vibrant business-friendly
model, establishing partnerships between local
businesses and leading global companies.
To further enhance iktva, during 2021,
we established the National Championsorganization with the aim to create a worldclass cluster of innovation that drives businessand job creation, and national economic
growth. This organization builds on thehistorical success of one of our major ecosystemdevelopment initiatives that is Aramco’s
entrepreneurship arm, Wa’ed, which wasestablished in 2011 as a pioneer in developinga thriving SME ecosystem in the Kingdom.

Supporting economies outside Saudi Arabia
Beyond Saudi Arabia and the iktva program,
Aramco also invests in other places where it
operates. Saudi Aramco Energy Ventures (SAEV)
invests in companies developing technologies withstrategic importance to our business, to accelerate
their development and deployment in ouroperations. Since inception in 2012, SAEV has
invested over $450MM in over 50 start-up
technology companies.
SAEV has a major focus on sustainability, including
CCUS, hydrogen and renewable energy. The current
portfolio includes companies Nexwafe (energy
efficient and low-cost wastewater aeration),
InflowControl (specializing in downhole control valveseliminating unwanted water production in oil wells,significantly reducing upstream energy requirements)
and Utility Global Inc (specializing in hydrogengeneration reactors, fuel cells and electrolyzers).

80

Responsible supply chain
We expect and support our suppliers andcontractors to adhere to the responsible businessstandards and principles stipulated by the Company
Supplier Code of Conduct and Company suppliercontractual agreement terms. These serve as thefoundation of the robust and transparent
relationships we strive to forge with our suppliers.
Our Supplier Code of Conduct establishes zerotolerance for bribery and corruption by suppliers,
contractors, and third-party consultants with whom
the Company conducts business. We regularly
train many of these third parties in Anti-Bribery
and Corruption (ABAC) and require recurringcertification of their compliance with our Supplier
Code of Conduct. The Supplier Code, third-party
training, and the recurring certification all instruct
third parties to report any known or suspected
misconduct relating to Company business.

Saudi Aramco Sustainability Report 2021

Overview

Climate change
and the energy
transition

Safe operations
and people
development

Minimizing
environmental
impactGrowingsocietal value

Data

In accordance with local labor laws, our Supplier
Code of Conduct and Company supplier contractual
agreement terms also set out the commitments we
expect from our suppliers in upholding the laborrights of their workforce and prohibiting all formsof forced labor and child labor.

are operating initiatives and programs to screen forand monitor contractor compliance with corporate
security, safety, environment, health, and labor
requirements, and to support improvements tocontractor employees’ working conditions, wellbeing, and timely payment of salaries.

From the outset of any business relationship, we
strive to uphold and embed the principles of being a
responsible business with all parties that wish to workwith us. On occasion, we have experienced businessinterruptions caused by supplier non-compliance toCompany standards and by performance gaps in ourown Company policies and practices. This is why we

Our suppliers have access to a hotline to report any
concerns and their concerns are reviewed seriously
by us. For more information, please refer to page 55.

What are we doing?

Building industrial
ecosystems
King Salman Energy Park (SPARK) will be an
anchor of industrial vibrancy in the Kingdom,
helping create an ecosystem of integrated value
chains by providing a global industrial hub forenergy-related manufacturing services and is
expected to attract some of the world's biggest
and most innovative energy industry names.
Close to Abqaiq in eastern Saudi Arabia,
Aramco is investing in a 50 km2 development
for energy-related facilities, expanding the
kingdom's industrial base. The city is expectedto add $6 billion to the Gross Domestic Product(GDP) and create thousands of jobs.

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Growing societal value continued

Impact assessments

Land rights

We address the potential impacts of our operations
on local communities, in particular ensuring accessto clean water; that the security of our people andfacilities is managed in a responsible way; andproviding access to remedy for unavoidable adverse
impacts related to our operations.

We submit requests to the Saudi Government,
represented by the Ministry of Energy, to assist us insecuring, protecting, and enforcing land rights tofacilitate the orderly conduct of the Company’s
operations in accordance with the Concession andrelevant laws, regulations and orders. All filed petitions
are evaluated and addressed with fairness and timeliness.

Aramco’s Stakeholder Protection Policy regulates
our interactions with local communities, and ourEnvironmental Health Code and Environmental
Management System, aligned with ISO 14001, andour policies relating to land acquisition include
principles dedicated to community issues such asenvironmental impact assessment, handling ofland claims, and access to clean water.
Recognizing that different countries have different
procedures and routines for involving local
community stakeholders, we work to comply withnational requirements. Anyone adversely affectedby our business activities has access to Aramco’s
General Auditor Hotline where they can reportany complaint about our operations, without
discrimination or fear of repercussion.

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Optimizing land use near
operating facilities
Aramco has demonstrated its social responsibility
and contribution to the social development andwell-being of its hosting communities through theproactive development of an approach to allow for
more land release for development purposes. The
Company implemented a unique approach to
manage land release around its facilities in a mannerthat maintains the safety of its facilities and the
public. Land planning and release around theCompany facilities is now being managed throughthe “hybrid approach,” which is a combination ofprescriptive-based, consequence-based andrisk-based approaches reflecting the nature offacilities operations and land use purposes when
deciding on land release.

Saudi Aramco Sustainability Report 2021

Overview

Climate change
and the energy
transition

Safe operations
and people
development

Safety campaigns andcommunications
Our Company is keen to play a positive role inensuring road safety by not only upskilling ourworkforce’s driving skills but also helping
our communities.

Recent road safety initiatives• Conducted “Traffic Safety Gardens” to entrencha traffic safety culture at a very early age throughan edu-tainment approach. To date over 200,000
students have received training.
• Introduced the Traffic Safety School Kit and trained
more than 6,000 teachers on train-the-trainer
courses. To date more than 1.8 million students
have undergone training.

Minimizing
environmental
impactGrowingsocietal value

Data• Under our Traffic Safety Signature Program, we
introduced a "Safety Corridor" initiative to reduce
serious accidents on an 80 km stretch of Dhahran— Al Hassa Highway, and in 30 in-city and 26
out of city accident blackspots. The objective is
to lower fatalities and serious injuries and foster
safety culture and safe driving behavior. The
program provides engineering and enforcement
recommendations. It has been supported by
HRH Governor of the Eastern Province.
As of 2021, the number of serious accidents inblackspots decreased by 68% as a result of
implementing these recommendations.

• As the Government of Saudi Arabia reformed
driving laws to allow women to drive, we havetaken the initiative to train female employees anddependents on safe driving behaviors, andestablished our own female driving school.
• We have provided traffic safety awarenessprograms to promote safe driving culture among
company and contractors’ employees in addition
to local communities. These programs included
more than 230 traffic safety awareness sessions
targeting more than 24,000 individuals.

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Growing societal value continued
Community investment and support
As part of our commitment to grow value wherever
we operate, the section following shows ourmonetary contribution to boost economies andsupport communities.

In 2021, we made community investments of overSAR 1,350 million (USD 360 million) in Saudi Arabia
and abroad. Along with engaging with ourcommunities via business activities and investments,
we encourage our management and employees toengage with communities proactively and positively.

Saudi Arabia

Volunteering days
In December 2021, we also launcheda structured year-round volunteering
portal to help identify volunteering
activities that match Company
employees’ talents.

Wa’ed
Established in 2011 as a fully-owned venture of
Aramco, it makes venture capital investments,
offers incubation and mentoring services to
Saudi-based start-ups.
Since its founding, Wa’ed has disbursed morethan $100 million to 100+ start-ups whose
unique products and services are transforming
the Saudi economy. Some notable examples
include Red Sea Farms (a Saudi Agtech start-up
that uses saltwater-based agriculture systems)
and a biofuels company that is developing
energy solutions with zero carbon footprint.

Matched Giving

Micro-industries

The Matched Employees Online Donation program was launchedin 2002 during the holy month of Ramadan to promote theengagement of employees in community giving by facilitating
their donations and providing matching funds to make significant
philanthropic contributions.

Within our micro-industries development portfolio that spans
across the Kingdom, we are transforming hundreds of sociallydisadvantaged beneficiaries from being charity dependent into
financially independent individuals through structural training,job opportunities, and sustainable financial income. Our recent
initiatives include a honey industry development project in four
regions (Baha, Taif Asir and Al-Madinah) with plans for further
expansion, a coffee plantation and production project in Jazan
and rose oil body care products production in Al Taif. To date,over 2,700 individuals have directly benefited from these
initiatives.

In 2021, our employees’ donations marked a new record interms of donated amount and level of engagement in a single
campaign. Some 14,000 employees donated circa SAR 6 million
with the Company matching employees’ donations; it resulted
in over 12 million SARs donated to 22 charities benefiting
approximately 50,000 people across 17 cities in the Kingdom
to mobilize support to underprivileged people.
Recent examples include providing home renovations andappliances to families in need, diabetes monitoring andtreatment, kidney dialysis treatment, and providing support
to cancer patients.

King Abdulaziz Center for World Culture (Ithra)
Built by Aramco, Ithra is a multidimensional cultural destination in the Eastern
Province of Saudi Arabia providing interactive workshops, shows and events,
which are designed to enrich society among all age groups. These are all
included within five main pillars: art, knowledge, creativity, culture, and society.
In 2021, Ithra continues to make a substantial impact in the areas of art, culture,and knowledge across the Kingdom and abroad. It re-opened to the public,
welcoming hundreds of thousands of visitors. A special Digital Wellbeing
program, “SYNC”, was created with a vision of a world where we are all incontrol of our digital lives. The program is guided by global research tounderstand how technology is affecting our lives, and translate the knowledge
into awareness campaigns, educational content and programs aiming to raise
global awareness around the topic.

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Saudi Aramco Sustainability Report 2021

Overview

Safe operations
and people
development

Climate change
and the energy
transition

Growingsocietal value

Minimizing
environmental
impactData

GlobalHand-in-Hand
Waste Sorting

Livestock

Project Hope

Assist local householdswith livestock as part
Promoting recycling to some
20,000 primary school students of a poverty reduction
and local community members program in Panlong
Village (Gansu Province).
from Huli District, Xiamen.

Educational support forover 3,500 underprivileged
students in Fujian, Liaoning,
Zhejiang and Yunnan
Provinces.

Aramco Coding School

Plant-A-Coral-Seed-A-Reef

Helping underprivileged elementaryand middle school students to learn fromover 20 tailored programming classes toclose the technology education gap in
Ulsan Province.

Support the installation anddevelopment of a purpose-built
artificial reef at the Sisters’ Island
Marine Park, the country’s largest
reef garden project.

Meal Distribution
Benefit over 680,000
underprivileged, COVID-19
impacted individuals withnutritious cooked meals.

National Fish
& Wildlife
Foundation
Distributed 18 grantsthat improved theresiliency of 10 coral
reefs.

Saudi Aramco Sustainability Report 2021

STEM Program

STEM Program

Support for STEM Learning,
the largest provider ofeducation and careers
support in science,technology, engineeringand mathematics in the UK.

Free STEM tuition programs
for underprivileged
secondary school children.

Trees for
HoustonGalveston Bay
Foundation

Earth Echo
International

Supporting theCity of Houston’scomprehensive“Resilient Houston”
plan to mitigate
flooding risks andimprove climate
readiness byplanting, distributing,and reforesting
70,000 trees.

Lead sponsor of the2021 Marsh Mania
event, a marshplanting effort toplant 40,000 stalksof marsh grass along
the Texas Gulf Coastregion.

The OurEcho
challenge equips
individuals andgroups to identify
and address local
environmental issues,
specifically targeting
biodiversity
conservation.

Hurricane
Ida & WinterStorm Uri
Monetary andin-kind donations
to local non-profit
organizations to assist
with immediate andlong-term needs suchas food, home repairs
and furnishings.

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Growing societal value continued

Aramco’s relationship with theGovernment of Saudi Arabia
The interests of Aramco and the Government
are aligned in terms of maximizing long-term
shareholder value, which encompasses acting
responsibly for the benefit of not only today, but
for the many generations that are to follow us.
We have four key touch points with the Governmentof Saudi Arabia, as formalized in Aramco’s
Concession agreement with the Kingdom (theConcession) and the Income Tax Law: maximum
production level, maximum sustainable capacity,
royalties, and taxes, which are all Government
prerogatives.
With respect to those units of the Governmentthat act in a different capacity, for example, as aregulator or as commercial counterpart, we provide
information appropriate for those relationships andcircumstances in accordance with applicable laws
and regulations.
The Concession requires that all Saudi Aramcocontracts with any government agency or any
arrangement for the furnishing of hydrocarbons,services or otherwise shall be on a commercial basis.
Within these parameters, Aramco participates in
the following activities with the Government of
Saudi Arabia:

Tax, royalty, zakat, dividend andrevenue transparency
During 2020 and 2021, the world experienced
a global pandemic which had significant social
impacts. This highlights the critical contributionthat companies make to long-term value creation
and a healthy, diverse, prosperous society. Like mostcompanies, Aramco contributes resources that canand should support the social fabric and vitality of
the communities in which they operate. These
contributions are made directly in the case ofinvestment in communities, and indirectly throughtaxes paid to help finance Government services for
those communities, as well as royalty, zakat anddividend payments within the Kingdom.

$149 billion

Payments to the Government consisting ofincome taxes, royalties and dividends in 2021.

• Projects to support the communities andenvironment in which we operate. Ithra is a primeexample of this, which helps promote a creative,knowledge-based economy. Ithra’s flagshipcreativity and innovation season has beentransformed into a conference to support the
professional community. The first two editions
drew more than 165,000 visitors.
• Government-directed projects, which are doneon an arm’s length basis, including terms forreimbursement. For example, the Jasara Joint
Venture between the Saudi Aramco Development
Company (SADCO), Jacobs Engineering and the
Public Investment Fund (PIF) to provide
professional program and construction
management services on an arm’s length basis
for social infrastructure projects, including
Government projects within the Kingdom.

86

Saudi Aramco Sustainability Report 2021

Overview

Climate change
and the energy
transition

Safe operations
and people
development

Minimizing
environmental
impactGrowingsocietal value

Data

What are we doing?

Ithra
Aramco has two types of key activities with the Governmentof Saudi Arabia — a range of projects to support thecommunities and environment in which we operate andGovernment-directed projects, which are done on an arm’s
length basis, including terms for reimbursement.

Saudi Aramco Sustainability Report 2021

Built by Aramco, Ithra is a prime example of the former.
A multidimensional cultural destination in the Eastern
Province of Saudi Arabia, Ithra delivers interactive workshops,
shows and events, which are designed to enrich society
among all age groups.

87

Data
The following table presents Aramco’s ESG KPIs
for the years 2021, 2020 and 2019. Reporting
boundaries for each KPI and for each year is shownfor transparency and, where possible, comparability.
There are three common terms used in reference to KPIs' reporting
boundaries and the definitions of the commonly used terms are:Company in-Kingdom — Saudi Arabian Oil Company in-Kingdom
wholly-owned operated assets.
Saudi Aramco 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.

88

Saudi Aramco Sustainability Report 2021

Overview

Climate change
and the energy
transition

Safe operations
and people
development

Minimizing
environmental
impactGrowingsocietal value

Data

Key performance indicators
Metric (Definition,
unit of measure)

Material issue

2021
actual2021 boundaries

2020
actual2020 boundaries

2019
actual2019 boundaries

Climate change and the energy transition
Climate change

Scope 1 emissions(million metric tonsof CO2e)52.31,350.21,2,3
Saudi Aramco
Operational
Control excluding
Aramco Trading
Company, ASC,AOC and SAAC

52.03
Saudi Aramco
Operational
Control excluding
Aramco Trading
Company, ASC,AOC and SAAC

Saudi Aramco
Operational
Control excluding
Aramco Trading
Company, ASC,AOC and SAAC

Climate change

Scope 2 emissions(million metric tonsof CO2e)15.51,318.11,2,3
Saudi Aramco
Operational
Control excluding
Aramco Trading
Company, ASC,AOC and SAAC

19.03
Saudi Aramco
Operational
Control excluding
Aramco Trading
Company, ASC,AOC and SAAC

Saudi Aramco
Operational
Control excluding
Aramco Trading
Company, ASC,AOC and SAAC

Climate change

Upstream carbon
intensity (Ratio of
total upstream GHG
emissions (Scope 1 andScope 2) to production
sold, kg of CO2e/boe)

10.71,3Company
in-Kingdom

10.61,2Company
in-Kingdom

10.4

Company
in-Kingdom

Climate change

Upstream methane
emissions (metric tonsof CH4)26,7541

Company
in-Kingdom

26,4241,2

Company
in-Kingdom

29,444Company
in-Kingdom

Climate change

0.051
Upstream methane
intensity (Methane
emissions fromupstream operations
per volume of marketed
natural gas, %)Company
in-Kingdom

0.061,2Company
in-Kingdom

0.06

Company
in-Kingdom

Climate change

5.511
Flaring intensity(Volume of hydrocarbon
gas flared per barrelof oil equivalent
produced, scf/boe)

5.971,2
Saudi Aramco
Operational
Control excluding
Aramco Trading
Company, ASC,AOC and SAAC

5.88
Saudi Aramco
Operational
Control excluding
Aramco Trading
Company, ASC,AOC and SAAC

Saudi Aramco
Operational
Control excluding
Aramco Trading
Company, ASC,AOC and SAAC

Climate change

Flared gas (mmscf)

25,8251

26,9951,2
Saudi Aramco
Operational
Control excluding
Aramco Trading
Company, ASC,AOC and SAAC

28,205
Saudi Aramco
Operational
Control excluding
Aramco Trading
Company, ASC,AOC and SAAC

Saudi Aramco
Operational
Control excluding
Aramco Trading
Company, ASC,AOC and SAAC

Climate change

Energy intensity (ratioof total net energy
consumption andtotal production,
thousand Btu per boe)

116.61,3

Company
in-Kingdom

Company
in-Kingdom

Company
in-Kingdom

112.41,2,3

114.1

1.

Jazan Refinery is excluded from 2021 and 2020 GHG emissions inventory and Energy Intensity KPI boundary.

2.

Fadhili Gas Plant is excluded from 2020 GHG emissions inventory and Energy Intensity KPI boundary.

3.

This figure has undergone external limited assurance in accordance to the ISAE 3000 (revised). The assurance report can be found online here.

Saudi Aramco Sustainability Report 2021

89

Key performance indicators continued

Metric (Definition,
unit of measure)

Material issue

2021
actual2021 boundaries

2020
actual2020 boundaries

2019
actual2019 boundaries

Safe operations and people development
11

Saudi Aramco
Operational
Control

9Company
in-Kingdom

4Company
in-Kingdom

Workforce protection Lost time incident rate((Number of LTI cases x
200,000)/total work
hours)

0.017

Saudi Aramco
Operational
Control

0.011

Company
in-Kingdom

0.016

Company
in-Kingdom

Workforce protection Number of fatalities

11

Saudi Aramco
Operational
Control

11

Company
in-Kingdom

6Company
in-Kingdom

Workforce protection Total recordable casefrequency (Total
recordable incidents x
200,000/total work
hours)

0.054

Saudi Aramco
Operational
Control

0.044

Company
in-Kingdom

0.059

Company
in-Kingdom

Labor practices

Female (%) of total
employees

5.61

Company
in-Kingdom

5.11

Company
in-Kingdom

4.9

Company
in-Kingdom

Labor practices

Female employees (%)
in leadership position

3.1

Company
in-Kingdom

2.7

Company
in-Kingdom

2.1

Company
in-Kingdom

Labor practices

Number of graduates

1,447

Company
in-Kingdom

460

Company
in-Kingdom

1,069

Company
in-Kingdom

Labor practices

Number of apprentices

1,369

Company
in-Kingdom

1,001

Company
in-Kingdom

2,306

Company
in-Kingdom

Labor practices

Number of interns

1,922

Company
in-Kingdom

641

Company
in-Kingdom

1,089

Company
in-Kingdom

Labor practices

Company employees(number)

68,493Company
in-Kingdom

66,800Company
in-Kingdom

69,867Company
in-Kingdom

Labor practices

Employees receiving
regular performance
reviews (%)

96.8

Company
in-Kingdom

98.4

Company
in-Kingdom

94.0

Company
in-Kingdom

Freshwater consumption 33.8
(The difference between
the volume of freshwater
removed from theenvironment, incl.
surface water,
groundwater, for use
in operations, andfreshwater returnedto the source. The total
dissolved solids (TDS)
concentration of thistype of water is up to
2,000 mg/l)(million cubic meters)

Company
in-Kingdom

32.9

Company
in-Kingdom

36.2

Company
in-Kingdom

Process safety andasset integrity

Number of Tier 1
process safety events

Minimizing environmental impact
Water

1.

90

This figure has undergone external limited assurance in accordance to the ISAE 3000 (revised). The assurance report can be found online here.

Saudi Aramco Sustainability Report 2021

Overview

Material issue

Climate change
and the energy
transition

Metric (Definition,
unit of measure)

Safe operations
and people
development

2021
actualMinimizing
environmental
impact2021 boundaries

2020
actualGrowingsocietal value

2020 boundaries

Data

2019
actual2019 boundaries

Minimizing environmental impact continued
Water

Freshwater withdrawal 33.8
(million cubic meters)
Please note, the amountof Freshwater
Withdrawn is the sameas the amount ofFreshwater Consumed.

Company
in-Kingdom

32.9

Company
in-Kingdom

36.2

Company
in-Kingdom

Water

Hydrocarbon discharge 5.4
to water (total amountof hydrocarbons that aresystematically released
to surface water throughregulated industrial
wastewater discharges,
barrels)

Company
in-Kingdom

4.7

Company
in-Kingdom

14.9

Company
in-Kingdom

Local environmental
impactNumber of hydrocarbon 13
spills (Total numberof accidental release
events of liquid
petroleum hydrocarbon
into the environment,
where the spill incident
is > 1 bbl, number)

Saudi Aramco
Operational
Control

6

Saudi Aramco
Operational
Control

11

Saudi Aramco
Operational
Control

Local environmental
impactVolume of hydrocarbon 14,447
spills (Total volume ofliquid petroleumhydrocarbon
accidentally released
into the environment,
where the spill incident
is > 1 bbl, bbl)

Saudi Aramco
Operational
Control134

Saudi Aramco
Operational
Control

38

Saudi Aramco
Operational
Control

Local environmental
impactSOx emissions (Quantity 141
of Sulphur Oxides
including Sulphur
Dioxide (SO2) and
Sulphur Trioxide (SO3)expressed as SO2
equivalent, kilotons)

163
Saudi Aramco
Operational
Control excluding
Aramco Trading
Company, ASC,AOC and SAAC

204
Saudi Aramco
Operational
Control excluding
Aramco Trading
Company, ASC,AOC and SAAC

Saudi Aramco
Operational
Control excluding
Aramco Trading
Company, ASC,AOC and SAAC

Waste management

Industrial waste
generated (The total
amount of industrial
waste, hazardousand non-hazardous,
generated fromoperating facilities,
not including waste
recycling, re-using,and recovery,
metric tons)

Company
in-Kingdom

Company
in-Kingdom

Company
in-Kingdom

Saudi Aramco Sustainability Report 2021

158,000

231,000

232,00091

Key performance indicators continued

Metric (Definition,
unit of measure)

Material issue

2021
actual2021 boundaries

2020
actual2020 boundaries

2019
actual2019 boundaries

Growing societal value
Economic
contribution

Group

Direct economic
value generated
and distributed:

Group

Group

– Revenues(million SAR)

1,346,930

768,109

1,105,696– Other income related
to sales (million SAR)

154,828

93,982131,089– Operating costs(million SAR)

729,840

478,731561,914– Employee wages
and benefits(million SAR)

52,74851,264

41,595– Dividends paid
(million SAR)1

288,417

261,902274,424– Payments togovernment(million SAR)

557,033

412,786

594,424

Economic
contribution

Total R&D expenses(million SAR)

3,873

Group

2,830

Group

2,150

Group

Labor practices

Saudization (%)

90.5%

Company
in-Kingdom

89.6%

Company
in-Kingdom

88.5%

Company
in-Kingdom

National content

Percentage of Saudi
construction
contractors relative tothe total construction
contractors workforce
in Saudi Arabia

25.6%

Company
in-Kingdom

21.6%

Company
in-Kingdom

21.8%

Company
in-Kingdom

National content

Percentage of Saudi
service contractors
relative to the total
service contractors
workforce in
Saudi Arabia

56.6%

Company
in-Kingdom

51.0%

Company
in-Kingdom

51.4%

Company
in-Kingdom

National content

Iktva procurement
spend within theKingdom (%)

59.0%

Company
in-Kingdom

57.5%

Company
in-Kingdom

55.8%

Company
in-Kingdom

1.

92

Dividends paid to shareholders of the Company and dividends paid to non-controlling interests in subsidiaries

Saudi Aramco Sustainability Report 2021

Overview

Material issue

Climate change
and the energy
transition

Metric (Definition,
unit of measure)

Safe operations
and people
development

2021
actualMinimizing
environmental
impact2021 boundaries

2020
actualGrowingsocietal value

2020 boundaries

Data

2019
actual2019 boundaries

Corporate governance
Ethics, bribery,
and corruption(Compliance)

Number of allegations

539

Company
in-Kingdom

Ethics, bribery,
and corruption(Compliance)

Anti-bribery andcorruption training(Attendees)

7,300

Company
in-Kingdom

Corporate
governance

Board compositionby average age

62

Group

61

Group

Not disclosed previously

Corporate
governance

Board compositionby average tenure

5.0

Group

5.6

Group

Not disclosed previously

Saudi Aramco Sustainability Report 2021

619

Company
in-Kingdom

507

Company
in-Kingdom

Not disclosed previously

93Abbreviations, terms and glossary

Currencies

Terms and glossary

Currency conversion
All financial amounts in SAR and USD in this Report
are reported in line with the exchange rates
reported in Saudi Aramco's 2021 Annual Report.

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 the Kingdom

Aramco Namaat
Aramco’s industrial investment program.

$/USD/US$/Dollar
US dollar

Units of measurement
Barrel (bbl)
Barrels of crude oil, condensate or refined products
boe
Barrels of oil equivalentbscf
Billion standard cubic feet
bscfd
Billion standard cubic feet per day
BTU
British thermal unit
GW
Gigawatts
mboed
Thousand barrels of oil-equivalent per day
mmboedMillion barrels of oil-equivalent per day
mmscf
Million standard cubic feet
mmtpa
Million metric tons per annum
per day
Volumes are converted into a daily basis using
a calendar year (Gregorian)scf
Standard cubic feet

ARLANXEO
ARLANXEO Holding B.V., a wholly-owned specialty
chemicals subsidiary.
ATC
Aramco Trading Company, a wholly-owned
subsidiary of Aramco.
Carbon credit
A carbon credit is a tradable instrument that
represents either; a permit to emit one tonne of CO2
or equivalent GHG (tCO2e) into the atmosphere or; acertificate that represents the avoidance or removalof one tonne of CO2 or equivalent GHG (tCO2e) fromthe atmosphere.
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 human-caused 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, utilization, and storage (CCUS)
A set of technologies that can reduce CO2 emissions
from new and existing coal- and gas-fired power
plants, industrial processes, and other stationary
sources of CO2. It is a three-step process that includes
capture of CO2 from power plants or industrial
sources; transport of the captured and compressed
CO2 (usually in pipelines); and underground injection
and geologic sequestration, or permanent storage,of that CO2 in rock formations that contain tiny
openings or pores that trap and hold the CO2.
Sequestration and Storage are often usedinterchangeably. Utilization is where CO2 is reusedin other applications e.g. food preparation,
carbonated drinks manufacturing etc.

tscf
Trillion standard cubic feet

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Climate change
and the energy
transition

Safe operations
and people
development

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 tonnes of carbon dioxide equivalents(MMtCO Eq).” The carbon dioxide equivalent fora gas is derived by multiplying the tonnes of thegas by the associated GWP. MMtCO2Eq = (million
metric tonnes of a gas) * (GWP of the gas).
Carbon intensity
A measure of greenhouse gas emissions in carbon
dioxide (CO2) equivalent per barrel of oil equivalent.
Carbon markets
Two types of carbon market exist:(1) Regulatory compliance markets — used bycompanies and governments that by law have toaccount 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. In Q42021 the KSA
Government announced plans to create avoluntary carbon market.
Carbon Offset
Reduction credits generated in one location that aretransferred to another location or entity, and areusually denominated in metric tonnes of a reduced
emission or megawatt hours 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 of closed
loops in which raw materials, components andproducts lose their value as little as possible,
renewable energy sources are used and systems
thinking is at the core.

Saudi Aramco Sustainability Report 2021

Minimizing
environmental
impactGrowingsocietal value

Data

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
from months to thousands 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.
Company/Aramco/Saudi Aramco
As used herein, and unless the context or additional
text suggests otherwise, the terms “Aramco”,“Saudi Aramco”, “Company”, “we”, “us” or“ours” refer to Saudi Arabian Oil Co. and its
consolidated subsidiaries.
Concession
As defined and discussed on page 143 of Saudi
Aramco Annual Report 2021.
CO2
Carbon dioxide.
CO2e
Carbon dioxide equivalent.
Condensate
Light hydrocarbon substances produced with
raw gas which condenses into liquid at normal
temperatures and pressures associated withsurface production equipment.
Decarbonization
The process of reducing CO2 (GHG) emissions fromthe Company’s operations.
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.

95

Abbreviations, terms and glossary continued

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
emissions levels or relative to an 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 to generate 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 byhuman activity.
ESG
Environmental, social and governance.
Flaring intensity
Volume of gas flared per barrel of oil equivalent
produced (scf/boe).
FreshwaterNon-brackish water with total dissolved solids (TDS)
concentration up to 2,000 mg/l.
G20Group of Twenty is an intergovernmental forum
comprising 19 countries and the European Union (EU).

96

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.
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 reduction
Quantified absolute decrease in GHG emissions
specifically related to/arising from an activity. (ISO)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,hydro fluorocarbons, perfluorocarbons and sulfur
hexafluoride. Aramco’s inventory includes CO2,methane and nitrous oxide.
HSSE
Health, Safety, Security and Environment.

Saudi Aramco Sustainability Report 2021

Overview

Climate change
and the energy
transition

Safe operations
and people
development

Hydrocarbons
Substances containing only hydrogen and carbon.
Fossil fuels are made up of hydrocarbons.
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) that areendorsed in the Kingdom and other standards andpronouncements endorsed by SOCPA.
iktva
In-Kingdom total value add. The Company's
program to promote the development of a localizedenergy/industrial eco-system.
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.
IPIECA
International Petroleum Industry Environmental
Conservation Association.
IPO
The 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.

Saudi Aramco Sustainability Report 2021

Minimizing
environmental
impactGrowingsocietal value

Data

KAUST
King Abdullah University of Science and Technology.
KFUPM
King Fahd University of Petroleum and Minerals.
Kingdom
Kingdom of Saudi Arabia.
KPIs
Key Performance Indicators.
LTI
Lost time injuries.
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
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 estimatedat 25 times that of carbon dioxide (CO2). Methane
is produced through anaerobic decomposition ofwaste in landfills, animal digestion, decompositionof animal wastes, production and distribution ofnatural gas and petroleum, coal production, andincomplete fossil fuel combustion.
MotivaMotiva Enterprises LLC — located in the US
National
Refers to the Kingdom of Saudi Arabia.
Natural gas
Underground deposits of gases consisting of
50–90% methane (CH4) and small amounts ofheavier gaseous hydrocarbon compounds suchas propane (C3H8) and butane (C4H10).

97

Abbreviations, terms and glossary continued

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 theatmosphere, nitrogen oxides can contribute toformation of photochemical ozone (smog), canimpair visibility, and have health consequences;
they are thus considered pollutants.
Original concession
See definition to 'Concession'.
Paris Agreement
The United Nations Framework Convention on
Climate Change Paris Agreement.
PIF
Public Investment Fund of Saudi Arabia.
Production costs
The sum of operating costs and depreciation,reflecting both the erosion of asset value overtime on an accounting basis and the cost ofoperating the business.
R&D
Research and development.

Reserves
Those quantities of liquids and gas, which, byanalysis of geoscience and engineering data,
can be estimated with reasonable certainty to
be economically producible — from a given dateforward, from known reservoirs, and under existing
economic conditions, operating methods andgovernment regulations — prior to the time atwhich contracts providing the right to operate
expire, unless evidence indicates that renewal
is reasonably certain, regardless of whether
deterministic or probabilistic methods are used
for the estimation. The project to extract thehydrocarbons must have commenced or theoperator must be reasonably certain that it willcommence 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 causedby conditions that are beyond the Company’scontrol, such as adverse weather, are not considered.
A score of less than 100 percent indicates there were
issues that negatively impacted reliability.
SABIC
Saudi Basic Industries Corporation.
SASREF
Saudi Aramco Jubail Refinery Company, a subsidiaryof Aramco, formerly known as Saudi Aramco Shell
Refinery Company.
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 notdistinguish between the activities and operationsof the Company and those of its subsidiaries.

98

Saudi Aramco Sustainability Report 2021

Overview

Climate change
and the energy
transition

Safe operations
and people
development

Saudi Green Initiative (SGI)
A national initiative for the Kingdom that aims
to increase the Kingdom’s reliance on clean
energy, offset the impact of fossil fuels andcombat climate change.
Scope 1 GHG emissions
Direct emissions, which include GHG emissions
from onsite fuel combustion, flaring, venting andfugitive emissions.
Scope 2 GHG emissions
Indirect emissions, which account for GHG emissions
from offsite power generation including electricity
and steam.
Scope 3 GHG emissions
All indirect emissions (not included in Scope 2) that
occur in the value chain, including both upstream
and downstream emissions.
Senior Executives/Management Committee
The members of the Senior Management ofAramco holding the title of President (CEO)or Senior Vice President.
Senior Management
The Senior Management and other officers of
Aramco who, while subordinate to the Senior
Executives, are still involved in the managementof Aramco and participate in driving its strategies,
decisions or operations.
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, aiming toenhance the development and resilience of the Saudi
economy by increasing the gross domestic product,
providing job opportunities, diversifying the
economy and strengthening cooperation between
public and private sectors.

Saudi Aramco Sustainability Report 2021

Minimizing
environmental
impactGrowingsocietal value

Data

SOCPA
Saudi Organization for Chartered andProfessional Accountants.
S-Oil
S-Oil Corporation.
SSC
Sustainability Steering Committee.
Subsidiaries
Except with respect to financial information, theterm 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 oraffiliate (i) holding 30% or more of the voting rights
in a company or (ii) having the right to appoint 30%
or more of the Board of a company.
With respect to financial information, the term
subsidiaries is defined by IFRS, meaning entities
over which the Company has control.
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) frequency
Sum of recordable cases that occurred in theworkplace per 200,000 work hours.
UN SDGs
United Nations Sustainable Development Goals.
US/United States/USA
United States of America.
Zero Carbon
Applies only to energy sources, processes, products,
projects etc. that emit zero GHG emissions.

99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
regarding such items. These statements include
all matters that are not historical fact and generally,
but not always, may be identified by the use ofwords such as “believes”, “expects”, “are expected
to”, “anticipates”, “intends”, “estimates”, “should”,“strive”, “will”, “shall”, “may”, “is likely to”, “plans”,“targets”, “goals”, “outlook” or similar expressions,
including variations and the negatives thereof orcomparable terminology. These statements include,
among other things, statements about expectations
in connection with the Company’s environmental,social and governance (“ESG”) initiatives, including
the targets and goals set forth in this Report.
The Company cautions that its forward-looking
statements are subject to risks and uncertainties
that could cause actual results to differ materiallyfrom those expressed in, or implied or projected by,
the forward-looking information and statements.
Our ability to reach our goals, including our goals
related to ESG and minimizing our environmental
impact, safe operations and people development
and growing societal value within the Kingdom
could be affected by factors including, but notlimited to: the inability to successfully meet thetargets set forth in this Report including throughthe management GHG emissions; the inability tomeet our plastic waste and water managementtargets or successfully protect biodiversity; theinability to develop and deploy technology solutions
to allow us to deliver the benefits of oil and gashydrocarbons for future generations; the success of
our partnerships with local and global organizations;the inability to ensure a healthy and safe environment
for employees; natural disasters and public healthpandemics or epidemics (such as COVID-19);
competition in the industries in which Aramco
operates; conditions affecting the transportationof products; operational risk and hazards common
in the oil and gas, refining and petrochemicals
industries, including with respect to the iktva
program; the cyclical nature of the oil and gas,refining and petrochemicals industries; weather
conditions; political and social instability and100

unrest and actual or potential armed conflicts;
managing Aramco’s growth; risks in connection
with projects under development and recent andfuture acquisitions and joint ventures, including withrespect to SABIC; managing Aramco’s subsidiaries,
joint operations, joint ventures, associates andentities in which it holds a minority interest,
including their performance with respect to ESG
initiatives; risks related to operating in a regulatedindustry and changes to oil, gas, environmental orother regulations that impact the industries in which
Aramco operates; and international trade litigation,
disputes or agreements.
In light of these and other risks, uncertainties andassumptions, the forward-looking events describedin this Report may not occur. The forward-looking
statements speak only as of the date of this Report.
We undertake no obligation to update or revise any
forward-looking statement, whether as a result of
new information, future events or otherwise. All
subsequent written and oral 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 andcontained elsewhere in this Report.
Except where noted, the information covered inthis Report highlights the Company’s performanceand initiatives in fiscal year 2021. The inclusion of
information in this Report should not be construed
as a characterization regarding the materiality or
financial impact of that information.
This Report may contain links to or informationfrom other internet sites. Such links and information
are not endorsements of any products or services insuch sites, and no information in such site has beenendorsed or approved by Aramco.

Saudi Aramco Sustainability Report 2021

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

Please visit www.aramco.com
for more information

Please visit
www.aramco.com/
sustainability formore informationon our approachto sustainability, ourbasis of preparationand our
independent
assurancestatements

Please see our 2021 Annual Report atwww.aramco.com/en/investors/reportsand-presentations

Contact us

We hope you find this Report engaging and informative,
and we continue to welcome your input and views:

investor.relations@aramco.com

This Report is printed on paper certified in accordance with the
FSC® (Forest Stewardship Council®) and is recyclable and acid-free.

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

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