ARAMCO's Sustainability Report for 2023 highlights the company's comprehensive approach to addressing climate change and the energy transition, while maintaining safe operations and people development. Key points of the report include:
Climate Change and Energy Transition
- Multi-source, Multi-speed Approach: Recognizes the varying starting points in the energy trilemma (security, affordability, sustainability) across regions.
- Lowest Carbon Intensity: Among peers, Aramco stands out with the lowest upstream carbon and methane intensities.
- Net-Zero Ambition: Aspires to achieve net-zero Scope 1 and Scope 2 GHG emissions across wholly-owned operated assets by 2050.
- Reduction Goals: Plans to reduce upstream carbon intensity by 15% by 2035 against a 2018 baseline.
Performance Metrics
- GHG Emissions Reduction: Total Scope 1 and Scope 2 emissions decreased in 2023 compared to 2022, attributed to reduced hydrocarbon production and improved accounting methods.
- Upstream Carbon Intensity: Increased slightly in 2023 due to higher gas production and storage, but remains lower than the 2022 level.
- Upstream Methane Emissions: Decreased by 5.1% in 2023, maintained at 0.05% despite higher natural gas production, thanks to rigorous LDAR programs and efficiency improvements.
- Flaring Intensity: Increased from 4.60** scf/boe in 2022 to 5.64** scf/boe in 2023, primarily due to increased maintenance and operational activities, including the inclusion of the Jazan Refinery in GHG reporting.
Contributions to Sustainable Development
- Investment in Renewable Energy: Planning to invest in 12 GW of solar and wind energy by 2030, alongside CO2 storage capacity and gas production to displace liquid fuels for power generation.
- Environmental Stewardship: Planting 1.1 million native trees and 6.5 million mangrove trees within the kingdom, increasing biodiversity and contributing to reforestation efforts.
- Economic Growth and Job Creation: Engaging in sustainable investment through a $1.5 billion Sustainability Fund, aimed at creating jobs and driving economic growth.
- Collaboration and Partnerships: Partnering with research centers, industries, and organizations focused on climate challenges, including governmental and private sector collaborations across various industries.
Methodological Enhancements
- External Assurance: GHG emissions reporting underwent external limited assurance according to ISAE 3000 (revised), enhancing transparency and accuracy.
- Methodology Adaptation: Adopted a market-based methodology for calculating GHG emissions in 2023 to avoid double counting, improving the precision of emissions reporting.
New Initiatives
- New Energies Organization: Established in 2023 to focus on lower-carbon solutions and align with the Kingdom's climate ambitions.
- Supporting UN SDGs: Contributing to sustainable development goals through investments in renewable energy and environmental conservation efforts.
Overall Strategy
Aramco's strategy integrates environmental, social, and governance (ESG) considerations into its core operations, aiming to balance energy security, affordability, and sustainability. Through innovation, efficient operations, and strategic partnerships, the company seeks to mitigate its environmental impact and contribute positively to global sustainability efforts.
