Environment Climate Change

Sustainability

Environment & Climate Change

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

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 Action

Spill Prevention

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.

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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 Production

Environmental 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.

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Driving Sustainability

Financial Performance

Safety & Health

Workforce Development

Human Rights

Social Impact

Responsibility to Customers & Supply Chain

Business Ethics and Compliance

Anti-Bribery and Whistleblowing

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.