Circular Economy | PETRONAS Chemicals Group Berhad (PCG)

Why It Matters

Growing concerns over plastic pollution and tightening regulations on plastics and packaging are accelerating the global shift toward a circular economy. As an integrated chemical producer, we are committed to leading this transition by embedding sustainability across our value chain. Our initiatives support alignment with global and national policies, meet rising customer demand for sustainable products, and reinforce our environmental responsibility.

In parallel, we are actively exploring lower-carbon solutions to support long-term decarbonisation. This includes carbon dioxide utilisation and the development of bio-based chemicals as alternatives to fossil-based products—efforts guided by our enhanced sustainable product portfolio.

Our Approach

We remain committed to driving innovative and collaborative solutions through our New Plastic Economy (NPE) agenda, anchored on four strategic pillars: innovation, infrastructure, education, and clean-up. These efforts are implemented through purposeful partnerships with key stakeholders—including waste management companies, recyclers, technology providers, and the communities in which we operate. Through these initiatives, we aim to enhance the recyclability of plastic materials and transform end-of-life plastics into valuable resources, contributing to a more circular and sustainable economy.

In addition, we are an active member of the Plastics Sustainability Working Group, a collaborative platform that brings together government agencies, industry players, and non-governmental organisations to address plastic waste challenges in Malaysia.

How We Provide Value

We are committed to developing and introducing innovative products that advance circularity across our operations. This includes high-performance, sustainable alternatives that improve the heat resistance of recycled materials, as well as bio-based plasticizers and emollients derived from renewable carbon sources.
Our subsidiaries are also investing in new facilities to produce renewable-based products, while actively reducing their carbon footprint by adopting recyclable materials in product packaging.

We actively improve the recovery of recyclable materials through our internal 3Rs (Reduce, Reuse, Recycle) programme, which is implemented across our operating units. As part of our commitment to reducing plastic waste in manufacturing, we also participate in the global plastics industry’s Operation Clean Sweep initiative.
To further promote circularity, we reuse intermediate bulk containers (IBCs) and drums for product packaging, minimising waste and extending the lifecycle of our materials.

Akestra™: A high-performance alternative to conventional plastics that enhances the heat resistance of recycled PET, increasing recycled content and promoting circularity
Pevalen™ Pro 100: An ISCC PLUS certified, non-phthalate plasticizer made from 100% renewable carbon
Voxtar™: Renewable-based product manufactured using renewable raw materials and hybrid electricity sources at our ISCC PLUS certified plant in India
Emfinity®: A bio-based emollient developed for personal care products