Petro Rabigh ESG Sustainability
Sustainable growth is the core of the Saudi Arabia Vision 2030, and Petro Rabigh's Sustainability (Environmental, Social, and Governance -ESG) strategy and practices continue to contribute to the goals of Saudi Vision 2030. Organizations face an evolving landscape of environmental, social, and governance (ESG) related risks that can affect their profitability, success, and even survival. Globalization has already changed the competitive environment of companies, and a more globalized economy is compelling companies to change the ESG practices in emerging markets and challenging environments. Nowadays, more than ever, corporate leadership recognizes measurable Environmental, Social, and Governance performance. Petro Rabigh is transforming its business by focusing on ESG integration in every aspect of the company. In 2021, Petro Rabigh refreshed its vision, mission, and strategic objectives that set out clearly ESG focused directions to do the business.
Petro Rabigh is also deeply intertwined with ESG concerns; therefore, a strong ESG proposition will help to tap new markets and expand into existing ones. After in-depth materiality analysis, we developed a Sustainability (ESG) strategy; our strategic Sustainability (ESG) initiatives focus on the following top eleven (11) material areas:
1. Governance and Ethics
Petro Rabigh is realigning its governance, policies, and systems with the national vision 2030 and international ESG criteria and standards. We ensure that our business practices exceed the standards' expectations by continuously monitoring, measuring, publishing ESG and sustainability management information. We strongly adhere to the applicable global reporting guidelines, disclosures, and transparency standards. Furthermore, Petro Rabigh establishes its strategic ESG and sustainability intent by aligning with international initiatives, including the UN Global Compact (UNGC), UN SDGs, and other global ESG projects.
2. Resource Consumption and Efficiency
Our company is one of Saudi Arabia's main petrochemical and refinery installations and, as such, has national strategic importance. Accordingly, we need to ensure our continued viability and resilience by demonstrating and reporting best in international class in production efficiency to our shareholders and interested third parties. Water production, consumption, and efficiency of use are significant issues that need to be addressed as it has a high embodied carbon content and environmental footprint. Looking to the longer term, Petro Rabigh will embrace and harness the circular economy at an industrial scale to source and process renewable resources as raw materials. In addition, the displacement and replacement of fossil fuel-based energy sources with renewable energy sources will become an increasing priority as the organization progresses towards a lower carbon footprint.
3. Atmospheric and GHG emissions
Due to the nature of our business, Petro Rabigh is a producer of carbon dioxide, methane, and other GHG and atmospheric emissions in Saudi Arabia. We understand, appreciate, and respond to the market and investor sentiment by embracing and keeping well informed of international developments and expectations as it concerns our operational emissions. GHG and other gaseous emissions are being targeted in our strategy to minimize and mitigate our environmental impact. Carbon footprints and emissions intensities have become standard performance metrics.
4. Effluent Discharges
Being located on the Red Sea and close to sensitive ecological balance, the marine environment and surroundings are impacted by our releases. The reduction and minimization of pollutant loads is an environmental management imperative that is closely tracked. Petro Rabigh will ensure the highest possible environmental management standards and leadership for all of our activities, including works and services undertaken by our employees, suppliers, and contractors.
5. Waste Management
With progressive success, Petro Rabigh has undertaken waste management and minimization programs for several years. We believe that adopting a circular economy framework for the internal treatment and reuse of our waste products will accelerate our waste minimization program.
6. Occupational Health & Safety (OHS)
We understand that Petro Rabigh activities and products (both on and off-site) have significant potential to cause life-changing harm and major damages to our employees, local communities, suppliers, contractors, and end-users. Our Occupational Health and Safety management and performance standards are non-negotiable to ensure that all stakeholders and their interests are met. We believe our business viability, reputation, legal and financial obligations are profoundly reliant on our OHS performance.
7. Human Capital
Our top talent attraction, retention, diversity, and inclusion (D&I) programs are being actively monitored, nurtured, and evaluated at all levels to attain the best in-country performance. The performance appraisal process is robust and effective, promoting our best candidates to fill the leadership roles.
Our supply chain service providers and contractors are encouraged to meet the same Employment and labor standards.
8. Biodiversity Net Gain
Our facilities are located on the Red Sea and in close proximity to ecologically sensitive areas. The full nature and scale of our company's past, current, and future impacts, both positive and negative, onto these natural environments are continuously scrutinized and assessed, including end-of-life products’ wastes and environmental emissions.
9. Community Engagement & Development
Our company is one of the primary and competitive employers in Rabigh and surrounding areas, including northern Jeddah. As the community provides the majority of employees plus day-to-day services, our continued success is dependent on the development and engagement of our local community. The local community's loyalty to Petro Rabigh has sustained it during challenging times. Ongoing community support and development is vital to ensure the company's future success and value. Leveling up social inequality will broaden our employment pool and spur the growth of marginalized and vulnerable groups. In addition, the community expects to be protected from harm from our operations or emergencies.
10. Sustainable Procurement and Supply Chain
Our robust procurement system helps the company avoid ESG business risks by maximizing beneficial opportunities of local sourcing, environmentally responsible goods and socio-economic development. We aim to maximize positive environmental, social and economic impacts over the entire life cycle of the goods and services provided by suppliers and our diverse supply chains.
Petro Rabigh ESG factors are being integrated alongside the typical price and quality considerations into company’s procurement processes and procedures. Our procurement team undertakes effective and comprehensive ESG and quality due diligence during the procurement, tendering and award phases. Our sustainable practices ensure that the organization only works with suppliers who are meeting ESG terms.
11. Emergency Preparedness and Business Continuity
As part of our social license to operate, we are obliged to protect our employees, local communities, and natural environment from operational and crisis related harms. We ensure our compliance with legislation, Civil Defense requirements and international ESG standards by establishing, maintaining, monitoring, testing and demonstrating our Emergency Preparedness and Business continuity capacity and competence.