Saudi Aramco

RATING

SECTOR

Petroleum and natural gas

WEBSITE

CONTACT

P.O. Box 5000
Dhahran 31311
Kingdom of Saudi Arabia

Email: international.media@aramco.com

 

STOCK EXCHANGE

LISTING

No relevant listings disclosed or found.

EMPLOYEES

79,000

CHIEF SUSTAINABILITY OFFICER

Joseph Martin

AWARDS

No relevant awards listed or found.

CONTENT SOURCE

FURTHER READING

Report created by Katerina Vargova

Saudi Aramco

SECTIONS :  Sustainability    Evaluation  •  Progress  •  Watch  •  Overview

Company Activity

Saudi Aramco, officially Saudi Arabian Oil Company, is a Saudi Arabian state-owned petroleum and natural gas company based in Dhahran, Saudi Arabia. As of 2020, it is the sixth-largest company in the world by revenue. Saudi Aramco is a leading producer of the energy and chemicals that drive global commerce.

From their proven upstream capabilities and strategically integrated global downstream network to their cutting edge sustainability technologies, Saudi Aramco has created an unsurpassed value engine that places them in a category all their own.

They believe in the power of energy to transform lives, enhance communities, advance human progress, and sustain our planet.

Saudi Arabian Oil Company was founded in 1933 and is based in Dhahran, Saudi Arabia. It has subsidiary locations in Saudi Arabia, China, Japan, India, the Netherlands, the Republic of Korea, Singapore, the United Arab Emirates, Egypt, the United Kingdom, and the United States.

With the global population forecast to increase by two billion over the next 25 years, even more, energy will be required to meet rising demand. It will take all available sources of energy to fill this need — both legacy and alternative sources. And while alternative energy sources are steadily making advances, they will not be capable of meeting future demand alone. Even as they transition to a low emissions future, hydrocarbon-based energy sources will be counted on to meet the bulk of the world’s energy demand well into the future.

Saudi Aramco is committed to driving energy efficiency and addressing the global emissions challenge. And as the world’s largest integrated oil and gas company, they believe Saudi Aramco is uniquely qualified to make effective contributions to the overall solution.

Company Sustainability Activity

From continuously improving operational efficiency and the environmental performance of Saudi Aramco’s facilities to pursuing low carbon energy solutions, and strategically investing for growth, they view sustainable practices as the best way to ensure its business remains viable for the long-term.

From reimagining the internal combustion engine to carbon capture and zero flarings, sustainability is at the very heart of Saudi Aramco’s business. They believe they have a responsibility to safeguard the natural environment for generations yet to come.

Saudi Aramco harness technologies such as big data, advanced analytics and AI to focus on its key objectives: sustaining low carbon intensity crude oil, growing non-fuel applications for crude oil, and creating sustainable transport for the future.

Highlights

  • Gross chemical production capacity 46.1 million tonnes per year
  • Average realized crude oil price $64.6/barrel
  • Upstream carbon intensity 10.1 kg of CO2e/boe (kilograms of carbon dioxide equivalent per barrel of oil equivalent)
  • Crude oil production 9.9 million barrels per day
  • The Company’s environmental commitments are underpinned by an environmental management system, aligned to ISO 14001
  • Each subsidiary company is responsible for establishing its own environmental compliance framework and monitoring ongoing compliance consistent with the Environmental Protection Policy.
  • Quantities of spills to the environment for the in-Kingdom wholly-owned operated assets, including spills and leaks of at least 1 barrel: 18 barrels in 2019, 139 barrels in 2018
  • As of 31 December 2019, 4.9% of the workforce consisted of women and the company now has one female Board member

Targets

  • Maintain the Kingdom’s crude oil upstream carbon intensity as among the lowest globally
  • Support sustainable oil-based transport
  • Drive low-GHG revenue growth
  • Target high-impact solutions to address climate change
  • 35% reduction of the company’s non-industrial energy consumption by 2020 versus a 2013 baseline

Progress

  • Saudi Aramco established a GHG emissions management program to account for Scope 1 and 2 GHG emissions from the Company’s operations and assets, develop relevant KPIs, identify initiatives that could further reduce its already low carbon intensity, and support reporting requirements based on industry guidelines. 
  • In 2019 Scope 1 emissions 44.7 million metric tones of CO2e (46.6 in 2018), Scope 2 emissions 13.2 million metric tones of CO2e (14.7 in 2018)
  • The company established a flaring minimization plan in 2006 to further improve its environmental performance. The company also invested in the Company-wide Flaring Minimization Roadmap, and a Fourth Industrial Revolution Center, designed to monitor flaring and other operations in real time.
  • Saudi Aramco has acted to mitigate the negative environmental impacts of systematic flaring of associated gas by utilizing gas for power generation and petrochemicals production, which also has positive economic benefits to the company. 
  • Flaring intensity in 2019 was 5.54 cubic feet per barrel of oil produced (5.77 in 2018)
  • Saudi Aramco has grown the MGS, which supplies gas for use in the electric power facilities located in the Kingdom and in the Kingdom’s rapidly growing petrochemical sector. The development of the MGS reduced the company’s environmental impact and GHG emissions arising from flaring, in addition to supporting national economic growth.
  • Upstream carbon intensity 10.1 kg of CO2e/boe in 2019 (10.2 kg of CO2e/boe in 2018)
  • Saudi Aramco issued its corporate energy conservation policy in 2000 and has been improving its energy performance. Energy intensity in 2019 was 114.1 thousand BTU per boe (118.4 thousand BTU per boe in 2018).
  • Saudi Aramco seeks to continually reduce emissions through capital investment and operational improvement. In 2018 and 2019, the company maintained the volume of sulfur oxide (SOx) emissions for the in-Kingdom wholly-owned operated assets at 202 kilotons of SO2 equivalent, which include sulfur dioxide (SO2) and sulfur trioxide (SO3).
  • 90% progress against the goal of 35% reduction of the company’s non-industrial energy consumption by 2020, with a total accumulated energy savings of 27%, equivalent to 660 thousand barrels of oil, as of the end of 2019
  • Saudi Aramco manages a global network of 12 research and technology centres located in the Kingdom and abroad with the goal of delivering new technologies to achieve its recovery, discovery, and diversification and sustainability objectives.
  • Saudi Aramco’s freshwater consumption was higher in 2019 (36.15 million cubic metres) compared to 2018 (30.5 million cubic metres) mainly due to inclusion of new operating facilities and increase in drilling activities.
  • Waste management is an integral part of the company’s operations where waste is categorized into three management streams: hazardous, non-hazardous (including municipal), and inert waste. Management options are then ranked by their environmental impact with the highest priority going to waste prevention, followed by reuse, recycling, recovery and disposal. All new and selected existing projects are assessed for waste minimization opportunities, and the design of facilities and processes includes reuse, recycling, and recovery opportunities.

Certificates

United Nations Sustainable Development Goals

United Nations SDGs Compliance

The Impakter Index team aligns current company-wide sustainability initiatives with the UN Sustainable Development Goals in the following section.

SDG 5

  • To increase the percentage of women employed by Saudi Aramco and to broaden the pool of qualified female employees in the energy sector generally, the company conducts Science, Technology, Engineering, and Math (STEM) programming in elementary schools to encourage future careers in these fields. The company also sponsors young Saudi women pursuing degrees in STEM subjects through various training institutes, academies and a university scholarship program. Other programs include the Gulf Regional Organization for Women initiative, Leadership Excellence for Women Awards & Symposium, STEMania program for school-age girls, and targeted university scholarships. Specifically, the company has been actively promoting women in PetroTechnical Professional (PTP) jobs through the company’s college degree sponsorship program. More than 170 PTP graduate female students are part of Saudi Aramco’s core operations today.
  • In order to build a pipeline of the best and brightest talent, Saudi Aramco engages in early outreach programs with select in-Kingdom universities, colleges and high schools. Outreach programs include sessions for female students such as the Female University Seminar initiative in partnership with Princess Nourah Bint Abdulrahman University in Riyadh.
  • Complementary to the Government’s childcare program (Qurrah) provided to working mothers, Saudi Aramco also provides daycare services at its Dhahran headquarters to ensure working mothers have access to quality childcare
  • The company has taken a leading role in promoting and supporting the right of women to drive in the Kingdom following changes to applicable laws in 2018. Saudi Aramco opened a driving centre to train the company’s female employees and employees’ female family members, as well as to encourage a safer and friendlier driving environment on the Kingdom’s roadways.

SDG 7

  • In 2013, Saudi Aramco launched a non-industrial energy initiative called the Lead by Example program. Starting with its own facilities, the program aims to demonstrate viable energy efficiency solutions for other companies and communities to emulate and concentrates on six key focus areas: water heaters, lighting, vehicles, heating ventilation and air conditioning (HVAC), homeownership, and smart electricity meters.
  • Saudi Aramco is also deploying renewable energy systems in office buildings and industrial facilities such as production wells and bulk plants
  • In January 2017, the company installed the Kingdom’s first wind turbine at the Turaif Bulk Plant. Additionally, Saudi Aramco has installed a car park solar panel system covering a total area of 100,000 square meters with a power generation capacity of 10.5 MW

SDG 8

  • Saudi Aramco’s initiative to seed micro industries in the Kingdom is designed to empower people to shape their own economic future by creating additional value from traditional crafts and natural resources. The company has identified several micro industries that, with the right business model and support, are ripe for generating long-term impact for local communities. These programs focus on delivering training and training facilities, knowledge, tools and technology that remove financial barriers and lay the groundwork for participants and beneficiaries to succeed in new endeavours and enterprises.
  • In the Jazan Mountains, Saudi Aramco’s coffee programs have supported farmers with training, farm preparation and water network system installations, resulting in the planting of over 20,000 seedlings since 2016, replacing other less sustainable crops.
  • Saudi Aramco has provided embroidery training and jobs to hearing-impaired and other under-served women in Dammam since 2017, also in partnership with Nesma Holding Company.

SDG 13

  • Saudi Aramco understands that no single solution is sufficient to solve the climate challenge. The company’s approach leverages a diverse and balanced portfolio, champions technological innovation, and is collaborative in nature. It aims to work towards solutions that will improve the delivery of affordable and reliable energy to people across the world for societies to have access to the energy they need to sustain economic growth and development.
  • Saudi Aramco participates in collaborations that support the development of sustainable energy systems and low Greenhouse Gas (GHG) technologies. Saudi Aramco is a founding member of the Oil and Gas Climate Initiative (OGCI) and a member of the International Petroleum Industry Environmental Conservation Association (IPIECA), the Petroleum Environmental Research Forum, and the World Bank’s “Zero Routine Flaring by 2030” initiative. 
  • Saudi Aramco also supports the Government’s efforts to achieve its contributions as a signatory of the Paris Agreement as well as other climate change mitigation and adaptation efforts by the Kingdom.
  • The company is pursuing various initiatives to manage the carbon footprint of its operations and assets by implementing flare gas recovery systems, energy efficiency programs, leak detection and repair programs and evaluating the potential utilization of carbon dioxide in various applications, such as enhanced oil recovery. 

SDG 15

  • Saudi Aramco believes that the protection and preservation of the natural environment for future generations is vital to its continued success. The company maintains 10 different sites that have been designated as Corporate Biodiversity Protection Areas, where it endeavours to protect local natural ecosystems.
  • Saudi Aramco is developing a mangrove eco-park, which will help foster knowledge and appreciation of this fragile ecosystem. A mangrove plantation initiative to restore lost mangrove habitats in the Kingdom’s Eastern Province coastal areas aims to plant two million mangrove trees. Although this is a voluntary environmental stewardship initiative, this effort is important to protect the natural habitats and ecosystems the company relies on its areas of operation. The company supported a study to estimate carbon sequestration associated with mangroves, which highlighted that areas such as the Ras Tanura mangrove eco-park and Abu Ali Island are able to store approximately 1.7 million metric tons of CO2 over the lifetime of the mangroves.  
  • Saudi Aramco entered into a partnership with the Smithsonian Institution and the Saudi Wildlife Authority to save one of the unique and highly endangered species in Asir region (in the south-west of Saudi Arabia) – the Asir magpie.

Secondary SDGs: 14

SDG 14 

  • Saudi Aramco monitors its hydrocarbon discharges by deploying online monitoring systems to provide continuous, reliable and accurate measurements of hydrocarbons in wastewater effluents, helping to proactively manage hydrocarbon discharges to the marine environment in a timely manner.

Evaluation

Saudi Aramco doesn’t have any of the main sustainable certificates or awards. The company is publishing its Environmental, Social and Governance report as a part of Saudi Aramco Annual Report. Although Saudi Aramco is in compliance with a few of the UN Sustainable Development Goals, they are not explicitly mentioned in their reporting. 

Saudi Aramco is a state-owned oil company and sixth largest company in the world by revenue. Even though that Saudi Aramco is lowering its emissions per barrel it does not cap the amount of oil that can be produced, so a company could still increase its contribution to the climate crisis

Saudi Aramco uses less water and flares-off less gas than many of its rivals and it has other green initiatives, including planting trees and running some of its facilities on renewable energy but still contribute to the climate crisis by producing hundreds of millions metric tons of carbon dioxide. Saudi Aramco is rated D.

Analyst Outlook: Negative

Saudi Aramco is a state-owned company and Saudi Arabia is known for its lack of transparency, plurality and for violation of human rights

Although the company is trying to incentivize women employees by providing education and sponsorship for young women, only 4.9% of its employees are women.

Key Points

  • State-owned company – human rights violation record of the Saudi government.
  • 4.9% of the workforce consisted of women and the company now has one female Board member
  • Since 1965 Saudi Aramco has emitted 59.26 billion tonnes of carbon dioxide equivalent, accounting for 4.38% of worldwide anthropogenic CO2 emissions – made Saudi Aramco one of the biggest polluters in the fossil fuel industry.
  • Is estimated that in 2018 Saudi Aramco produced 128 million metric tons of carbon dioxide in extracting, refining, and marketing its products.
 
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