© Hak Cipta PETRONAS Dagangan Berhad 198201008499 (88222-D).
Hak Cipta Terpelihara.
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Our Sustainability Commitment
See our roadmap in action and explore more in the 2024 Integrated Report.
Our Impact, Measured
Track our performance across key sustainability indicators and goals.
RM 12.5 billion invested in cleaner and renewable energy initiatives
20% increase in operational efficiency through digital transformation
Expansion into 30+ global markets supporting energy transition
- Economic
- Environment
- Social
- Governance
Financial Performance
We aim to deliver the best economic returns in the form of dividends to our shareholders. In addition, we also aspire to stimulate the Nation’s economic growth through taxes to the Government, ensuring local content in procurement and providing employment opportunities for the local population. It is our belief that positive economic impact is achieved through mutual growth by including communities and stakeholders alike.
Local Economic Opportunities
- Engage local suppliers and vendors through our Retail, Commercial, LPG and Lubricant businesses
- Develop the capability of appointed dealers'
Local Employment
Contribute to economic growth through indirect employment by encouraging our dealers to provide employment opportunities to locals.
Environment
Our environmental stewardship is guided by the Company’s HSE Policy. Aspects that are material to us and our stakeholders include climate change, emissions to air, accidental spills, waste and water use. We monitor our performance for each aspect, and discuss our data throughout this section.
- Climate Actions
- Spill Prevention
- Waste Management
- Water Use
- Environmental Supply Chain
PDB's climate action efforts are closely aligned with PETRONAS' Climate Change Position, PETRONAS Carbon Commitments (PCC) and the aspiration to achieve Net Zero Carbon Emissions (NZCE) by 2050. Guided by these principles, PDB is actively reducing GHG emissions across its operations and investing in renewable energy.
As part of our commitment, we have set specific targets to reduce our Scope 1 and Scope 2 emissions:
- Short-term target (2025): Reduce GHG emissions by 2,031 tCO2e (2%) through the installation of solar panels across our operations.
- Medium-term target (2026-2030): Achieve a 5,165 tCO2e (5%) through expandad solar deployment.
Our approach to reducing Scope 3 emissions includes both short and medium-term strategies:
- Short-term target (2025): Expand biodiesel projects, install electric vehicle (EV) chargers at more than 15 stations and introduce battery-swapping facilities for two-wheeler EVs at selected stations.
- Medium-term target (2026-2030): Enable the supply of Sustainable Aviation Fuel (SAF).
In addition to these actions, we are continuously working to improve energy efficiency through comprehensive energy audits and monitoring via digital platforms. These efforts focus on energy efficiency and electrification levers,aligning with PETRONAS’ NZCE 2050 ambition. A notable example of this commitment is the installation of energy-efficient LED lighting at our stations and terminals. PDB remains committed to playing its part in combating climate change and will continue to align with PETRONAS’ NZCE 2050 target. Through our ongoing efforts, we aim to build a more sustainable future, both for our operations and for the wider community.
As part of its climate adaptation strategy, PDB continues to enhance the resilience of its operational assets against physical climate risks. Five terminals were preliminarily identified to be vulnerable to climate physical risk. In 2024, vulnerability and adaptation assessments were conducted at three terminals to validate and evaluate exposure to hazards and the effectiveness of existing controls.
Identified climate risks include extreme precipitation, storm surge, lightning, and heat waves. Existing controls across the assessed terminals include flood gates, maintained drainage systems, lightning protection with scheduled inspections and documented procedures such as PDB Flood Management and PDB Business Continuity Plans.
To further strengthen resilience, several measures are to be considered. These include improving flood gate configurations, installing water level gauges, upgrading internal drainage, reinforcing pipe supports, and reassessing lightning protection systems. For areas with adequate drainage, monitoring of ground settlement and infrastructure performance is also to be considered.
In 2025, site validation continued to include two remaining terminals. These initiatives demonstrate PDB’s continued commitment to strengthening operational resilience and enhancing preparedness against climate-related risks.
This initiative contributes to:
SDG 7: Affordable and Clean Energy
SDG 13: Climate ActionRead more about our climate initiatives and target
PDB employs comprehensive control systems to prevent operational spills on both land and water, with a strong focus on risk management, operational integrity, and containment capabilities. Maintaining asset integrity and process safety is vital to ensuring the safety of our facilities and pipelines.
Going beyond regulatory requirements to reduce pollution from oil spills, we initiated a programme in 2021 to install and implement Automatic Tank Gauging (ATG) and Electronic Line Leak Detector (ELLD) systems at our stations. Due to disruptions from COVID pandemic previously, we have recently set a revised target for completion and report progress to PDB Board.
Programme to reduce pollution from spills Target & Year Progress against target
(as of end Aug 2024)- ATG & ELLD Installation
- Long-term: 1,035 stations by end 2028.
- Short-term: 331 stations by end 2024.
289 stations These initiatives support the following UN SDGs:
- SDG 6: Clean Water and Sanitation
- SDG 14: Life Below Water
PDB remains committed to continuously improving our operational integrity and spill prevention systems, ensuring that we protect both the environment and the communities in which we operate.
Waste Management
PDB is committed to enhancing waste management practices by focusing on waste recovery and promoting a 3R culture for non-hazardous waste. As part of our integrated sustainability approach, we have initiated the implementation of a plastic reduction initiative in 2025 to reduce resource use, waste, and pollution across its Kedai Mesra and Café Mesra outlets. This includes the removal of single-use plastic items such as straws and bags, the issuance of compostable and biodegradable bags to customers only upon request, the adoption of eco-friendly alternatives including paper bags and reusable bags, and the introduction of the Recyclable Bag and cloth bag to promote reusable shopping practices among customers.
We are also in the process of identifying key waste streams to further increase our recovery rates. This aligns with PDB's long-term sustainability strategy, where our goal is to continuously improve waste management practices across the organisation.
This initiative supports the following UN SDGs:
SDG 12: Responsible Consumption and Production
SDG 13: Climate Action
PDB remains committed to advancing its sustainability goals and will continue to focus on improving recovery rates and waste management practices. By integrating these efforts into our operations, we aim to minimise environmental impact and support the development of a circular economy.
Waste
Apart from developing a waste recovery sourcing strategy to improve our scheduled waste management, we are also making steady progress towards establishing 3R culture with regard to non-hazardous waste. Further to the rolling out of our Green Office Handbook and Single-Use Plastics Handbook in 2020, we also incorporated environmental sustainability in our HSE Plan 2021 to institutionalise green practices across the company.
Starting this year, we have implemented several initiatives to reduce the usage of single-use plastics. As of January 2023, we have prohibited drinking water in plastic bottles at all PDB-organised meetings, trainings and meetings. And as of June 2023, we have prohibited usage of plastic cups, bags and take-away containers and cutleries at all PDB-organised meetings, trainings and meetings. In addition, we have also implemented the provision of segregation bins for collection of plastic wastes at all our terminals, offices and training centres.
Beyond our own operations, we are also using our network of stations as a conduit for community recycling through collaborations with partners in providing access to recycling activities and facilities. In collaboration with Alam Flora, we have been conducting community recycling sessions at selected stations since 2019. And most recently, we launched the Used Cooking Oil (UCO) collection at selected stations which contributes to our country’s bio-economy strategic initiative; the UCO collected is one of the bio-feedstock which will be processed into Sustainable Aviation Fuel (SAF).
PDB together with Solid Waste Management and Public Cleansing Corporation (SWCorp) & Ministry of Local Government Development (KPKT) has recently organised a coastal clean-up and segregation bins roll-out at PETRONAS stations in Langkawi. This initiative is a collaboration between PDB, Langkawi Municipal Council The City Of Tourism (MPLBP) and SWCorp.
We will continue to expand such programmes as the communities become more aware about the importance of managing waste and the value of recycling.
Water Use
At PDB, we are committed to responsible water management by reducing water withdrawal across our operations through reuse initiatives such as LPG cylinder washing and proactive piping inspections to detect leakages. In addition, we have installed rainwater harvesting systems for general cleaning and gardening, with 52 stations utilising 135.1 kL of rainwater in 2024. The programme has also expanded to three more terminals, bringing the total to 11.
In 2024, we recorded zero incidences of non-compliance with Malaysian wastewater standards and regulations. All our facilities are equipped with oil interceptor systems to prevent any unplanned or uncontrolled discharges from entering public drains. In line with best environmental practices, we monitor the storm water discharge of oil interceptors at our terminals and stations every month
Additionally, in the same year, there were no water crisis recorded in our operations, resulting in zero costs associated with water-related risks.
This initiative contributes to:
SDG 6: Clean Water and Sanitation
SDG 12: Responsible Consumption and ProductionEnvironmental Supply Chain
To address concern over the health and livelihood of communities and ecosystems associated with the production of palm oil, we have started to implement the policy of responsible sourcing of PME, one of the components of our biodiesel fuel, by only acquiring PME from sources that have been certified by the RSPO.
Social
PDB recognises the value and impact of our business in the social ecosystem that we operate in. We are committed to operating safely, responsibly and reliably, and aligning our practices with acceptable business norms and the industry’s benchmarks.
- Safety and Health
- Workforce Development
- Human Rights
- Social Impact
- Responsibility to Customers & Supply Chain
Safety & Health
PDB is committed to safeguarding the safety and health of our employees, contractors, dealers, business partners, customers and the communities where we operate.We monitor and track our safety performance against annual targets, aligned with PETRONAS' Mission Zero (0) is Possible initiative.
In 2024, we are at par with our industry counterparts, where we have successfully achieved a target of zero (0) in the following key safety indicators:
· Number of Fatalities
· Number of Major Fire Incidents
· Number of Major Loss of Primary Containment (LOPC)All incidents are reported to Department of Occupational Safety and Health (DOSH), PETRONAS Board, staff and contractors. Incident stand-down sessions are conducted to share incident details, findings and lessons learned. If no incidents occur, this is also disclosed to DOSH, staff and contractors.
Over the years, PDB has consistently managed and monitored its HSE performance against the Annual HSE Scorecard KPIs. These KPIs are developed based on a three-year average of PDB HSE performance, reflecting the company’s commitment to continuous improvement. In 2024, PDB is empowered to uphold its "ZERO Target" performance for ZERO Fatalities, ZERO Major Fires and ZERO Major Loss of Primary Containment (LOPC) incidents.
This initiative supports:
SDG 3: Good Health and Well-Being
SDG 8: Decent Work and Economic GrowthKey Safety and Health Effort in PDB
HSE training and competency programme for staff and contractor.Strengthen occupational health and industrial hygiene programme.Applies process safety principle in constructing, operating and maintaining facilities.Safe transportation of our products.Optimum readiness for emergencies or crises to minimise the impact.Safe and effective contractor HSE management.What Is PDB HSE Policy
The PETRONAS Health, Safety & Environment (HSE) Policy sets out our commitment in upholding the safety of people, assets and the environment. Applicable wherever we operate, the PETRONAS HSE Policy ensures every person at our vicinity does the right thing, every time.What Is ZeTo Rules
As a responsible employer and operator, the safety of personnel at our facilities is of utmost importance to us. Our PETRONAS Zero Tolerance Rules, or “ZeTo Rules,” are among the many safe systems of work we have in place. ZeTo Rules prescribe 10 mandatory principles which must be adhered to by everyone including third-party personnel at our facilities.
Workforce Development
Our people are the driving force behind PDB’s success and long-term competitiveness. We are committed to fostering a high-performance culture by attracting top talent and continuously investing in their growth and development.
In 2024, PDB recorded zero incidents of non-compliance to labour standards, reflecting our commitment to ethical employment, fair treatment, and international standards.
3 Key Components in Workforce Development
Talent & Capability DevelopmentTalent & Capability DevelopmentWe foster a healthy work environment through engagement initiatives and events.
Welfare & BenefitsWelfare & BenefitsWe support employees’ welfare with PETRONAS-aligned benefits, including medical coverage, insurance, allowances, and leave.
Employee RelationsEmployee RelationsWe foster a healthy work environment through engagement initiatives and events.
Respecting Human Rights Across Our Business
At PDB, we are committed to respecting human rights across all aspects of our business, guided by the PDB Human Rights Policy, which is aligned with international standards and compliant with applicable local laws.
Through our Business and Human Rights (BHR) strategic initiatives, we embed human rights principles across our value chain— covering employees, suppliers, contractors, partners, and the communities where we operate. By integrating respect for human dignity into our policies and practices, we strengthen our role as a responsible and inclusive business.
PDB Human Rights Salient Areas:
- Labour and Working Conditions (including Supply Chain)
- Community Wellbeing
- Product Safety and Health
Related Document:
Safe and healthy working environment
Working hours aligned to Employment Act 1955
Rights to participate in association and community services outside working hours
Rights to participate in workers union or representatives.
Treated with respect and non-discrimination.
e,g. race, gender, nationality and HIV status.
Employment as per labour legislation which covers non-tolerance of illegal and child labour
Minimum wages as per regulatory requirements.
Assessing Human Rights Risks and Providing Access to Remedy in Our Value Chain
PDB integrates human rights into every stage of our value chain through robust corporate governance, continuous social due diligence and effective grievance mechanism. We remain committed to upholding the dignity and rights of stakeholders as part of our journey towards fostering a Just Transition.
We proactively assess our human rights impacts on a periodic basis, communicating and embedding human rights requirements in our core business processes through contract management, assurance programs and engagement with our stakeholders.
PDB integrates human rights into every stage of our value chain through robust corporate governance, continuous social due diligence and effective grievance mechanism. We remain committed to upholding the dignity and rights of stakeholders as part of our journey towards fostering a Just Transition.
We proactively assess our human rights impacts on a periodic basis, communicating and embedding human rights requirements in our core business processes through contract management, assurance programs and engagement with our stakeholders.
Related Document:
PETRONAS Contractor Code of Conduct on Human Rights (CoCHR)
Mesralink ChannelCommunity Outreach Programmes
At PDB, our community investment approach is anchored on clear principles and processes to deliver meaningful and measurable impact. All programmes align with the PETRONAS Social Impact Management Framework (PSIMF), which defines three focus areas: Education, Community Well-Being and Environment.
Embedding Volunteerism
To integrate social responsibility into our culture, we have established a mechanism to facilitate employee engagement, supported by a specific target for every employee to dedicate at least one hour annually to volunteerism. This ensures positive impact becomes a shared responsibility across the organisation.
Governance & Transparency
Our activations are implemented in collaboration with Government agencies, NGOs and local stakeholders, and outcomes are subject to third-party audits and disclosure in our Integrated Report, in line with Bursa Malaysia standards. This governance structure ensures our efforts remain transparent, consistent and aligned with stakeholder expectations.
Water for Life
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PETRONAS Coffee Break
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PETRONAS StreetSmart
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Ramadan Community Service
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0Water for Life
At PETRONAS Dagangan, we are committed to creating a positive impact in our operational communities. In partnership with the Malaysia Nature Society (MNS), our Water for Life initiative extends beyond providing clean water supply solutions – it is about enhancing overall living conditions.
Since 2013, we have reached 12 states, providing support to 16 villages, and positively impacting the lives of 8,650 residents. Our efforts encompass upgrading water systems, including the installation of pipes, advanced filtration systems, water tanks, and critical infrastructure.
Through this initiative, the communities we serve now enjoy reliable access to clean water, while improving their overall hygiene standards.
0PETRONAS Coffee Break
PETRONAS Coffee Break Campaign objective is to promote road safety awareness and remind motorists to take a break, refresh and rejuvenate. The programme is held during festive seasons including Chinese New Year, Hari Raya, Kaamatan and Gawai Festivals.
0PETRONAS StreetSmart
PETRONAS StreetSmart is an initiative at grassroots level which aims to promote road safety awareness to our young generation. Since its inception in 2013, the initiative has benefitted more than 5,000 students from over 35 schools nationwide. Prior to the pandemic, PETRONAS StreetSmart was conducted as a physical programme, however, in keeping with our commitment to prioritise the students’ health, safety and wellbeing, we have pivoted to virtual platform and developed a pilot programme for this format.
To further add value to this initiative, this year’s PETRONAS StreetSmart will introduce students to Design Thinking throughout the ideation process, lean prototype development and pitching stage, enabling them to develop High Order Thinking Skills (HOTS).
For this year’s StreetSmart, SMK Aminuddin Baki was announced the Grand Prize winner, whilst SMK Puteri Titiwangsa clinched the first runner-up prize. The remaining three (3) finalists namely SMK Serendah, Putrajaya Presint 5(1) and SMK La Salle, Petaling Jaya, shared the second runner-up prizes.
The PETRONAS Dagangan Berhad Virtual StreetSmart Design Thinking Challenge 2021 was held from 9 October to 13 November 2021, involving 100 students from 20 schools in Kuala Lumpur, Putrajaya and Selangor.
0Ramadan Community Service
PETRONAS Coffee Break Campaign objective is to promote road safety awareness and remind motorists to take a break, refresh and rejuvenate. The programme is held during festive seasons including Chinese New Year, Hari Raya, Kaamatan and Gawai Festivals.
Responsibility to Customers
We engage in a variety of efforts to provide the best customers experience to win the confidence of our customers and gain their trust in our brand.
Customers’ Health & Safety
- Go-to-Safety-Point’ programme at PETRONAS Station
- Complimentary LPG cylinder safety-check during delivery through Gas PETRONAS Home Delivery and Gas2U
Customers’ Data Privacy
- Strict control on customers’ info at our database with the latest security fixes
- A data breach preparedness process from investigation to resolution in the event that customers’ privacy is compromised
Customer Support and Engagement
- Promotion driven from customers’ feedback e.g. Morning@Mesra
- Omni-channel communications for feedbacks including calls, emails, webchats and social media
Building a Sustainable and Ethical Supply Chain
PDB is committed to building a sustainable business through an ethical supply chain, with the aim of improving quality and efficiency while strengthening resilience and long-term competitiveness.
Our commitment is reinforced through the PETRONAS Supplier Support Programme (PSSP), which consolidates vendor engagement to embed Environment, Social and Governance (ESG) best practices. In collaboration with the United Nations Global Compact Malaysia and Brunei (UNGCMYB), Bursa Malaysia and financial institutions, we support suppliers in developing ESG capacity, improving disclosure and accessing sustainable financing. These efforts align with Malaysia’s Net Zero Carbon Emission (NZCE) 2050 ambition.
We have also adopted the PETRONAS Contractor Code of Conduct on Human Rights (CoCHR) as part of our supply chain assessment, embedding social requirements and compliance into core business processes.
Together, these initiatives contribute to:
UN SDG 8: Decent Work and Economic Growth
SDG 12: Responsible Consumption and Production.Looking ahead, PDB will continue to expand the mentorship programme and deepen supplier partnerships to meet evolving environmental and social standards.
Governance and Business Ethics
Integrity guides how we operate, shaping decisions and behaviours across every level of PDB. Strong governance and business ethics form the backbone of our culture, ensuring accountability, transparency and respect in all our interactions.Anchored by PETRONAS Code of Conduct and Business Ethics (CoBE) and our People Policies, clear guidelines are in place to handle misconduct and non-compliance. Employees and external parties can report violations via our Whistleblowing channel, which supports anonymous reporting and is managed by trained personnel. Investigations follow structured procedures and corrective actions are taken as where necessary.
Breaches of CoBE are investigated through established procedures, with outcomes systemically recorded and used to reinforceorganisational learning. Oversight of CoBE, including whistleblowing reports and investigation outcomes is maintained at Board level, while PETRONAS leads periodic assessments to ensure continued effectiveness.
To embed an ethical culture, mandatory CoBE training is provided for all employees. This remains a key pillar of our corporate identity, to reinforce our collective commitment to integrity and responsibility.
This initiative contributes to:SDG 8: Decent Work and Economic Growth
SDG 16: Peace, Justice and Strong InstitutionsWhat Is PETRONAS CoBE
Is a general reference for use in all the countries in which PETRONAS conducts operations. It does not describe all applicable laws or PETRONAS policies, or give full details on any particular law or policy.
