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 Change

PDB’S climate actions are driven by PETRONAS’ Climate Change Position, PETRONAS Carbon Commitments (PCC) and its aspiration to be a Net Zero Carbon Emissions (NZCE) organisation by 2050. Centred on these, we are reducing our GHG emissions across our operations and investing in renewable energy. Our immediate short-term target to reduce our Scope 1 GHG emission is by using B10 & B20 biodiesel for our fleet; and for Scope 2 by increasing the number of petrol stations equipped with solar PV systems. We also aim to install solar panels at 60 more stations by 2023, reducing 1200 tCO2e (in reference to base year 2017). In addition, to further reduce our emission, PDB aims to install energy efficient equipment at more stations by end of 2024. And to demonstrate our commitment towards Climate Change, our VP/CEO and direct report has Sustainability Excellence KPI included in their report card; in which one of the elements covered in this KPI is Climate Change. We have also voluntarily begun incorporating certain TCFD-aligned disclosures in our reporting.

Spill

We have clear control systems to prevent operational spills, on both water and land, with particular emphasis on risk management, operations integrity and containment capabilities. Asset integrity and process safety are integral to the maintenance of our facilities and pipelines.

Waste

PDB is focused on waste management strategies including waste recovery and 3R culture for non-hazardous waste. And as environmental sustainability has been integrated into the company's plans, initiatives to reduce single-use plastics have been implemented, such as banning plastic bottles and containers at meetings and engagements; and providing segregation bins. PDB also collaborates with partners for community recycling and has launched initiatives like Used Cooking Oil collection to be processed into biofuel. Recent efforts include coastal clean-up activity and segregation bin roll-out in collaboration with local authorities and organizations, with plans to expand such programs as awareness about waste management grows in communities.

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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

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.