Kuala Lumpur, 9 November 2021 – PETRONAS has announced its endorsement of the World Bank’s Zero Routine Flaring by 2030 Initiative and the recommendations of the Task Force on Climate-related Financial Disclosures, as part of its broader effort for greater transparency around its action on climate change, in line with the Group’s aspiration to achieve Net Zero Carbon Emissions by 2050.
The Zero Routine Flaring Initiative aims to end routine flaring of associated gas from oil production. Under this Initiative, PETRONAS pledges to avoid routine flaring in new oil field developments and end routine flaring at existing oil production sites by 2030. This is applicable to PETRONAS Upstream operations within operational control and excludes flaring sources due to safety and non-routine flaring.
By supporting the Zero Routine Flaring Initiative, PETRONAS joins a growing global coalition of governments, companies and institutions that demonstrate strong environmental leadership and effective natural resource management by publicly reporting their flaring data on an annual basis, with a target of its first disclosure in 2023.
This move also signals PETRONAS’ contribution to the Malaysian Government’s Nationally Determined Contributions (NDC) to the Paris Climate Agreement in mitigating climate change and builds upon the PETRONAS Carbon Commitments introduced in 2012.
PETRONAS President and Group Chief Executive Officer Tengku Muhammad Taufik said, “As a responsible energy player, PETRONAS acknowledges the importance of transparency on climate-related disclosures for energy to be responsibly delivered in a way that benefits both the people and the planet.
“PETRONAS is committed and fully supports the international framework and standards on reducing GHG emissions. In this respect, we believe that addressing the critical issue of ending routine gas flaring through the Zero Routine Flaring Initiative aligns with our role and aspiration to achieve Net Zero Carbon Emissions by 2050,” he added.
Recognising the importance of transparency of climate-related risks, PETRONAS also publicly states its support towards the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), with a target to fully adopt the disclosure framework by 2023.
The TCFD provides market participants with recommendations to address the financial impact of climate change on their business. By increasing transparency on financially material climate-related risks and opportunities, the recommendations promote a more informed financial decision-making by investors, lenders and others.
To date, more than 2,500 organisations around the world have demonstrated their support to building a more resilient financial system and safeguarding against climate risk through better disclosures. Through its public support for the recommendations of the TCFD, PETRONAS aspires to proactively increase its transparency in information reporting while shaping the national climate-related risks disclosure.
In addition to the Zero Routine Flaring Initiative and TCFD’s recommendations, PETRONAS is also a member of Methane Guiding Principles (MGP), in the efforts to foster effective methane management and be transparent about the performance, aligned with internationally recognised frameworks and standards. These three efforts pave the way for PETRONAS to further contribute towards a sustainable future.