Petronas reinforces commitment to fight climate crisis, support global energy transition

KUALA LUMPUR: National oil company Petroliam Nasional Bhd (Petronas) is reinforcing its commitment to sustainability through a multifaceted strategy to address the global climate crisis and foster social progress.

Petronas group chief sustainability officer vice-president Charlotte Wolff-Bye outlined the company’s path, underscoring the critical need for urgent action to mitigate climate change and support the global energy transition.

Wolff-Bye said sustainability must evolve from theory to tangible action.

“Sustainability needs to move to action. The importance of creating strategies that translate into real-world impact is emphasised in Petronas,” she said during a panel session at the Sustainable Action Conference 2024 today.

Wolff-Bye noted that the energy sector remains the largest contributor to man-made carbon emissions, accounting for nearly 75% of global emissions.

“As an energy company, Petronas is uniquely positioned to drive change within this system,” she said, stressing that transitioning away from fossil fuels and towards cleaner energy solutions is essential to achieving global decarbonisation goals.

Petronas has already made significant strides in diversifying its energy portfolio, Wolff-Bye said.

As part of its energy transition strategy, the company has embraced renewable energy, biofuels, hydrogen, and other cleaner technologies.

“Energy demand in Southeast Asia is growing at an annual rate of about 3%, and by 2045, it is projected to increase by 40 to 70%. We must meet this demand with lower emissions, which is why Petronas is committed to cleaner energy alternatives,” Wolff-Bye said.

She highlighted that Petronas is committed to reaching net-zero carbon emissions by 2050, with an interim goal of reducing emissions by 25% from its 2019 baseline by 2030.

“By the end of this year, we will cap emissions from our Malaysia operations at 49.5 million tonnes of CO2,” she noted, outlining the company’s ambitious targets to meet its climate goals.

In addition to decarbonisation, Wolff-Bye said, Petronas is also focused on protecting biodiversity and ensuring a just transition for communities affected by the shift to cleaner energy.

She emphasised the company’s role in supporting Malaysia’s biodiversity, particularly through conservation initiatives that preserve the country’s rich natural heritage. “As a mega-diverse nation, biological diversity is crucial, and Petronas is committed to its protection.”

Furthermore, Wolff-Bye said, Petronas is also supporting its suppliers in aligning with environmental, social, and governance practices.

In August 2024, the company launched a supplier support programme aimed at helping small and medium-sized businesses adopt sustainability practices.

“We are all part of this ecosystem. Through this programme, we help train our suppliers to meet regulatory requirements and build resilience while aligning with Malaysia’s decarbonisation ambitions,” Wolff-Bye said, adding that the programme is part of a broader effort to ensure that Petronas’ value chain is ready to meet future challenges.

“We are working closely with the government to ensure that our supply chain is fit for purpose, capable of supporting the country’s decarbonisation goals, and contributing to a more resilient and sustainable economy.”