Environment & Climate Change - Sustainability

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 making strategic investments in renewable energy.

As part of our commitment, we have set specific targets to reduce our Scope 1 and Scope 2 emissions:
1. Short-term target (2030): Aiming to reduce GHG emissions by 5% through the installation of solar panels across our operations.
2. Long-term target (2040): Implementing Nature-Based Solutions (NBS) to contribute a further 10% reduction in overall GHG emissions.

Our approach to reducing Scope 3 emissions includes both short and long-term strategies:
1. Short-term target (2030): Initiatives include the implementation of biodiesel projects, the installation of electric vehicle (EV) chargers at more than 15 stations, and the introduction of battery-swapping facilities for two-wheeler EVs at select petrol stations.
2. Long-term target (2040): Planning for the future supply of Sustainable Aviation Fuel (SAF), contributing to further reductions in Scope 3 emissions.

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.

This initiative supports the following UN SDGs:
SDG 7: Affordable and Clean Energy
SDG 13: Climate Action

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.

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 implemented initiatives to reduce single-use plastics, such as banning plastic bottles and containers at meetings and engagements and providing segregation bins at our facilities.

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

We have reduced the amount of withdrawal throughout our operations by reusing water for LPG cylinder washing where appropriate, conducting piping inspection to check for leakages. In addition, we have also installed rainwater harvesting systems at all four terminals in the Sabah region.

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.