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Respecting Nature

  • Nature and Biodiversity
  • Circular Economy
  • Environmental Management

Why It Is Important

Biodiversity is the total sum of life on Earth comprising flora, fauna, microorganisms, ecosystems and habitats as well as the interdependent relationships between all of them. We depend on this web of life, both terrestrial and marine, to gain access to fresh water, food, medicine and a stable climate – all of which help sustain livelihoods, human health and economies.

An inability to conserve and protect biodiversity will adversely affect the benefits it provides. For example, forests and wetlands are essential in efforts to combat climate change by sequestering carbon while providing a habitat for various species, protecting coastlines and supporting surrounding communities as sources of livelihood.

PETRONAS also depends on biodiversity and ecosystem services such as water, land and marine.

As such, we are proactively working to protect and, where necessary, reversing biodiversity loss to avoid irreversible damage, which may impact our ability to deliver on our business goals and Net Zero Carbon Emissions by 2050 Pathway.


Our Approach

In 2022, PETRONAS established our Position on Nature and Biodiversity (the Position) to improve oversight on our nature and biodiversity footprint at enterprise level and strengthen our ability to delivery our NZCE 2050 Pathway. In establishing the Position, PETRONAS was guided by various international agreements and national policies such as the Convention on Biological Diversity (CBD) and Malaysia’s National Policy on Biological Diversity 2016-2025, as well as industry best practices from organisations such as Ipieca (the global oil and gas association for advancing environmental and social performance across the energy transition), and the World Business Council for Sustainable Development (WBCSD).

The Position consists of five areas of action that demonstrate visible leadership in nature and biodiversity conservation, harnessing the right expertise and resources to positively impact the nation, the ASEAN region, and other countries where we operate.

Our Five Areas of Actions




* Outstanding Universal Values, which means cultural and/or natural significance which is so exceptional as to transcend national boundaries and to be of common importance for present and future generations of all humanity.

Will be determined using Biodiversity and Ecosystem Services (BES) risk profiling and analysis using the Integrated Biodiversity Assessment Tool (IBAT)
** [Source: UNESCO World Heritage Centre - Compendium]

We also apply a risk-based approach in the implementation of the position. In 2023, we commenced Biodiversity and Ecosystem (BES) risk profiling for all our operational sites, supported by the Integrated Biodiversity Assessment Tool (IBAT) and PETRONAS risk assessment matrix. The objective of this activity is to identify assets that have a risk categorisation of “Very High” and “High”. The assessment results will be followed by site visits to validate the risk profiling and serve as a basis for the development of Biodiversity Action Plans for relevant locations.


Examples of PETRONAS' biodiversity conservation efforts around the world



Why It Is Important

A circular economy is a systemic approach that moves away from a linear (take-make-waste) economy to one that extends the life cycle of material and resources, ultimately reducing waste to a minimum.

For PETRONAS, circular economy is integral to our Sustainability efforts and is embedded across the group to:

  1. Enable a low waste future
  2. Steward natural resources
  3. Minimise our carbon footprint while creating value

We aim to contribute to a circular future, providing impactful solutions to our stakeholders and the betterment of our society through innovation and collaboration.

Five approaches to adopting Circular Economy at PETRONAS

PETRONAS’ circular economy is integral to our approach to sustainability, which is embedded across the Group to create value. As we enable a low-waste future, steward natural resources and minimise our carbon footprint across PETRONAS, there are circular economy projects of varying sizes and maturity levels.

Below are the five approaches to adopting Circular Economy at PETRONAS:

Circular Carbon

Closed loop system involving 4Rs (reduce, reuse, recycle, remove) to manage carbon emissions​

Bio Solutions

The use of bio-based inputs or products (regenerate) to reduce dependency on finite materials

Repurpose & Reuse

Lifecycle extension of materials, resources and/or facilities to their original state or to a new purpose to reduce waste

Waste to Products

The change of waste to base materials or other products to create new revenue lines

Sharing Model

Optimisation of resources via shared platform to increase cost efficiency and reduce waste

Why It Is Important

Managing environmental quality is essential to the preservation of our planet and the protection of our natural ecosystem. Irresponsible business activities can have severe consequences, such as oil spills, air pollution and resource scarcity. These consequences not only affect the health and well-being of humans, but also pose a threat to biodiversity and the sustainability of our planet. Managing environmental quality involves responsible resource utilisation, pollution prevention and sustainable practices which can help mitigate these environmental consequences.

Our Approach

At PETRONAS, we recognise the important role we have in managing our relationship with the environment. Throughout our operations and business, we implement various assessments, practices and site-specific actionable plans to protect the environment.

In our commitment to environmental stewardship, in addition to greenhouse gas emissions and waste, PETRONAS also focuses its efforts on other areas of significant impact, namely other air emissions, water management, oil spill prevention and decommissioning.

Click here for further details on our environmental management data.

This work is guided by international principles, frameworks and standards, including:

  • Host country standards for the design and operation of pollution prevention and control equipment
  • International Finance Corporation Group Environmental, Health and Safety Guidelines
  • Health and Safety Guidelines
  • World Resource Institute’s Aqueduct Water Stress Atlas
  • Decommissioning Option Assessment


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