Sustainability in PETRONASAre Japanese companies ready forthe low-carbon transition?
13.12.2022

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OpenGlobal agenda on sustainability changing the role of business in society
Since 2015, the role of business in driving sustainability has been amplified© 2022 Petroliam Nasional Berhad (PETRONAS)
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Accelerating pace of energy transition

There is better
appreciation ofclimate science

Regulations andpolicies are facilitating
growth in low carbon
technology andinfrastructure

Renewables are now costcompetitive with fossil
fuel-based electricity
generation in many
countries

Geo-political tension thatthreatens energy security
is heightening the need for
low carbon energy© 2022 Petroliam Nasional Berhad (PETRONAS)
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Malaysia's commitments and plans towards sustainability anddecarbonisation guide PETRONAS’ actions

12th Malaysia Plan

Malaysia’s Nationally Determined Contribution& Global Methane Pledge

National Energy Policy© 2022 Petroliam Nasional Berhad (PETRONAS)
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Turning risks into opportunities
Three main global
crises as per United
Nations

Climatechange

Nature Inequality
loss

Role of business inturning risks intoopportunities

ClimateactionNatureaction

SocialactionBusinesses have a
crucial role indelivering sustainable
progress for society
without negatively
impacting theenvironment,community, or society© 2022 Petroliam Nasional Berhad (PETRONAS)
Open|5Sustainability in PETRONASStatement of Purpose
As a purpose-driven
organisation,
Sustainability considerations
contribute directly towhat we do as a business,
how we operate andhow we engage with
employees, customers,
suppliers, service providers,local communities,
regulators, investors andother stakeholders

A progressive energy and solutions partner
enriching lives for a sustainable future

Sustainability Agenda

DGsritised Srio
Seven pFourSuslen tainse abislitynsmissioarbon E 050
Core
Net Z iration by 2asp

© 2022 Petroliam Nasional Berhad (PETRONAS)
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Targets toward Net Zero Carbon Emissions 2050
2024
Greenhouse gas emissions

149.5
MtCO2e49.5 MtCO2e cap for PETRONAS Malaysia operations

Methane emissions (direct support
to greenhouse gas emissions target)
1

Greenhouse gas emissions inclusive of Carbon Dioxide (CO2),Methane (CH4) and Nitrous Oxide (N2O) measured in CO2e2025↓50%50% Methane emissions reduction for
PETRONAS natural gas value chain operations2 (from 2019 levels)

2Natural gas value chain here is aligned with Oil and Gas
Climate Initiative (OGCI)’s reporting parameters, which includes
production processing and storage, transportation, distribution
and end use of natural gas.

2030

2050

↓ 25%

25% Greenhouse gas emissions reduction for
PETRONAS (from 2019 levels)↓70%

70% Methane emissions reduction for
PETRONAS natural gas value chain operations2 (from 2019 levels)↓50%

50% Methane emissions reduction for
Malaysia natural gas value chain operations2 (from 2019 levels)

Net Zero

Net Zero Carbon Emissions for PETRONAS(from 2019 levels)

Operational Control approach

Equity Share approach© 2022 Petroliam Nasional Berhad (PETRONAS)

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Strategy toward Net Zero Carbon Emissions 2050
PETRONAS’ actions towards Net Zero

Reduce greenhouse gas emissions

Supply lower carbon, cleaner andgreener energy solutions

Operational emissions reduction

Business growth opportunities in the low carbon
economyZero routine flaring and venting

RenewableenergyHydrogen

Energy efficiency

Specialty
chemicals

Green mobility

Electrification

Biofuels

Circular economy

Carbon capture and storage

Nature-based climate solutions© 2022 Petroliam Nasional Berhad (PETRONAS)

Open|8Ecosystem engagement and transformation towards a low carbon economy

Carbon Capture & Storage
Harmonise policies toaccelerate adoption

Circular Economy
Increase adoption andpromote ecosystemapproach

Reporting & disclosure
Streamline with internationalframework

Small-Medium Enterprises
Build resilience in green
growth and low carbon
economyClean energy and green
solutions
Develop new technologies(H2, biofuels, RE, etc.) andinnovative platform

Community and society
Promote local skill building
for a just transition© 2022 Petroliam Nasional Berhad (PETRONAS)
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Passionate about ProgressOpen