Climate Change | PETRONAS Chemicals Group Berhad (PCG)

Why It Matters

Climate change presents a profound challenge to global economies and ecosystems, and we recognise it as a core business priority. By proactively transitioning to a low-carbon economy, we are enhancing our resilience, driving innovation, and delivering long-term value for our stakeholders. Our commitment to climate action is embedded in our strategy and operations, reflecting our dedication to securing a sustainable future.

Our Approach

PCG remains committed to achieving net zero carbon emissions by 2050 for Scope 1 and Scope 2, in line with its NZCE 2050 Roadmap. In the mid-term, the company targets a 20% reduction in GHG emissions by 2030 (against the 2019 baseline), using identified decarbonisation levers. These targets are shaped by our operational realities and sustainability priorities, with short-term efforts focused on reducing flaring and venting, improving energy efficiency, and investing in renewable energy solutions such as on-site solar and bundled renewable energy credits. Medium- to long-term strategies include exploring electrification, low-carbon technologies, and expanding the Specialty Chemicals Division to support a low-carbon economy.

To strengthen climate governance, we continue to enhance our GHG accounting and reporting practices. This includes improving internal management systems, aligning with PETRONAS Technical Standards (PTS), and adhering to global frameworks like the GHG Protocol. Scope 3 disclosures have also been expanded to include key categories such as purchased goods and services, business travel, employee commuting, and use of sold products, supporting more data-driven climate solutions.

How We Address Climate Action

We continuously improve our operating assets through initiatives such as fuel and steam optimisation, power conservation, and advanced process controls. Our commitment to carbon reduction is driven by operational excellence, including energy efficiency enhancements and flare reduction measures at our manufacturing plants.

PCG embrace digitalisation to monitor and optimise energy consumption in real time, resulting in measurable GHG emission reductions. We are also exploring renewable energy solutions such as solar panel installations and assessing advanced low-carbon technologies like carbon capture and storage (CCS) to support long-term decarbonisation.

Climate-related risks are embedded into our corporate risk profile, covering identification, prioritisation, and management. These risks are assessed through a combination of qualitative and quantitative scenario analyses, in alignment with IFRS S2 requirements.

We continuously monitor and disclose our sustainability performance across key economic, environmental, social, and governance indicators to ensure transparency, track progress, and support informed decision-making. For data related to this topic, refer to our Environmental Eco-Efficiency data.