Towards Net Zero - Better Decision Making for Enterprise Level Green House Gas (GHG) Emission Management and Accounting

As a globally recognized energy company, PETRONAS is deeply committed to achieving a balanced approach to energy development and transition, which encompasses energy security, affordability, and sustainability. We remain steadfast in our commitment to optimizing our asset portfolio to lower carbon emission intensity. Our primary focus is on the development of oil and gas resources that incorporate low emissions or emissions abatement technologies, while concurrently pursuing the phased withdrawal of high carbon intensity assets. Our current emphasis is on reducing Scope 1 emissions, which are emissions directly associated with our operations, as well as Scope 2 emissions, which encompass the energy consumed in our operations. We have revised our carbon emissions accounting method to adhere to international frameworks and sector specific guidance to give us a robust basis for Scope 1 and Scope 2, and a better understanding of Scope 3 greenhouse gas emissions. Starting in 2023, PETRONAS aims to fully adhere to the Greenhouse Gas Protocol Corporate Accounting and Reporting Standard (2004), Ipieca Climate Change Reporting Framework (2011) and ISO 14064-1: 2018. To provide a total view of emissions across the Group, we will report emissions according to the operational control approach and equity share approach, and include Scope 1, Scope 2 and Scope 3 (prioritizing Category 11 ‘use of sold products’) greenhouse gas emissions. Our strengthened reporting will improve external benchmarking and provide a better correlation between financial and greenhouse gas emissions accounting.