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Hydrogen Hydrogen is a primary element in oil and gas, and holds significant potential as a clean, affordable energy that could support emissions reductions in hard-to-decarbonize sectors such as heavy-duty transport, heating, and industrial applications. We believe hydrogen has significant potential to provide ...
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Natural gas and hydrogen Natural gas has the potential to be a viable, cost-effective feedstock for blue hydrogen production. Natural gas is the most used feedstock for hydrogen production today. Aramco is a steering member of The Hydrogen Council, a CEO-led organization that promotes collaboration between governm...
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The energy transition offers challenges but also various opportunities for us to diversify our portfolio into new, lower impact value chains, including utilizing hydrocarbons for non- combustion uses, such as non-metallic materials and chemical applications, as well as investment in renewables projects. Such acti...
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Materials production, use, and eventual disposal already accounts for almost a quarter of all global CO2 emissions. The increase in materials use, even if decoupled from economic growth, will be accompanied by a further rise in CO2 emissions, particularly in hard-to-abate- industries. For example, emissions from c...
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At Aramco, we are working across them all. No matter which energy transition scenario plays out, oil demand from the petrochemicals sector is likely to remain robust. In fact, under a net zero scenario, petrochemicals could account for more than half of total global oil demand by 2050. The more intense the transit...
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Liquids-to-chemicals Our 2020 acquisition of a 70% stake in SABIC brought together two global companies committed to growth and value creation in petrochemicals. This propels our strategy to convert up to 4 million barrels per day of liquids-to-chemicals. More advanced, more sustainable materials would strengthen...
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Our chemicals business spans production of basic chemicals such as aromatics, olefins, and polyolefins to more complex products such as polyols, isocyanates, and synthetic rubber. Our crude-to-chemicals technologies have the potential to deliver higher chemical yields. By converting crude oil directly to chemical...
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Furthermore, through careful management of high-value streams such as hydrogen, and by internally recycling low-value streams, production of waste from the process is minimized. Such efficiencies in energy and material use are major factors in reducing the carbon footprint and capital expenditure of a TC2C™ facilit...
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Non-metallics Non-metallics are materials such as plastics and other such applications, that can replace traditional materials and minerals. They can provide improved performance and lower maintenance costs and have potentially lower life cycle costs, with greater resistance to corrosion, and a lower carbon footp...
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Deployment of renewable resources within the Kingdom will reduce GHG emissions and support long-term prosperity. The Saudi government has established a National Renewable Program with the goal of increasing the generation capacity of renewable energy sources to over 58 GW by 2030. 40 GW is planned from solar, 16...
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Microalgae Aramco is exploring various applications for microalgae. The Arabian Peninsula is ideal for microalgae production with its extensive, unique sabkha (salt flat) formations along the Arabian Gulf. Through the photosynthesis process, algae efficiently converts sunlight, CO2, water, and the available nutrien...
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The Clima Tree has been designed by Aramco in collaboration with Greengroves Environmental Services. What are we doing? NEXCEL — Non-metallic Excellence and Innovation Center Aramco and the China Building Materials Academy (CBMA) launched NEXCEL, a new Non-metallic Excellence and Innovation Center, to further advan...
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Collaboration with partners to develop and deploy technologies and infrastructure at speed and scale is necessary to support emissions reductions and the development of low carbon business opportunities. Working with other companies, including contractors, industry peers or companies in our product value chains,...
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It is an important part of the circular carbon economy and the central lever to support the decarbonization of our own business and operations. It is also an essential element of an integrated blue ammonia and hydrogen program. Partnerships will be required for the development of commercial solutions. Aramco has ...
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Current advanced CO2 utilization takes place in chemicals production, mineralization processes, and plastics and polymer production. We are also exploring direct air capture — a less mature technology — with technology partners. We realize the value that a decarbonization lever like CCS can achieve and as such we...
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CO2 nanobubbles are also being considered for green energy applications, such as algal biocrude production. For unconventional formations, carbon capture underground treatment and sequestration technology is being explored to chemically treat formations with the goal of increasing sequestration capacity. What are w...
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Jubail carbon capture and storage hub CCS is one of the key elements of the Saudi Green Initiative and a major contributor to the Kingdom’s plan to achieve its 2060 net zero ambition. In November 2022, the Ministry of Energy announced a target of capturing 44 MMtpa of CO2 by 2035. Aramco is a key partner supporting...
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Phase one of the CCS hub is intended to capture around 6 MMtpa CO2 by 2027 from three Aramco gas plants (Fadhili, Khursaniyah, and Wasit). Phase 2 of the CCS hub is intended to capture around 5 MMtpa by 2035. By 2035 up to 11 MMtpa of CO2 will be captured from Aramco facilities and transported through a pipeline n...
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Offsets and carbon credits A carbon offset is a reduction in emissions of CO2 or other GHGs made to compensate for emissions made elsewhere. A carbon credit is an instrument traded in carbon markets representing this reduction and may take alternative names such as allowance, permit, or reduction unit. Aramco see...
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While all these techniques help to generate carbon offsets, our goal is to diversify the carbon offsets portfolio, balancing the carbon footprint with the value of co-benefits for the communities and ecosystems where we operate. Aramco has planted 24 million mangroves along the Arabian Gulf and Red Sea coastlines...
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We achieved this by combining the CO2 with steam. What are we doing? Aramco Sustainability Report 2022 38 Differentiate Sustain Diversify Enable
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Natural climate solutions Natural climate solutions are conservation, restoration and improved land management actions that increase carbon storage or avoid GHG emissions in landscapes and wetlands across the globe. Combined with innovations in clean energy and other efforts to decarbonize the world’s economies, ...
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Aramco is working with external experts to assess the baseline ecosystem carbon stock around our existing mangrove forests to support and facilitate current and future verification assessments of carbon offsets from natural climate solutions projects. A third-party assessment, using The Blue Carbon Initiative me...
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Carbon markets Putting a price on carbon would be a key enabler for motivating investment in emerging technologies that are currently not cost-effective. Aramco favors and supports efficient and cost-effective ways to set a carbon price. We believe market mechanisms that address climate Captura Captura, one of t...
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What are we doing? change and sustainable development, and take the economic circumstances of developing countries into account, offer a good balance between driving emissions reductions and supporting economic growth. To be effective, any framework or market-based mechanism should cover all emitting sectors and ...
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Total R&D spend1 ($ million) 1,178 1,178 2020 2021 2022 1,033 755 The credits sourced through the auction are accredited by reputable international standards bodies compliant with globally accepted offsetting schemes (CORSIA) and originate from a variety of carbon reducing projects in developing countries betwee...
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Additionally, through Aramco Venture’s Sustainability Fund, we are planning to invest in new technologies promoting the development of global voluntary carbon markets. Leveraging technology We have a track record of innovation and technology development and we recognize that a successful energy transition require...
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The Initiative brings together leading researchers, analysts, energy producers and thought leaders from academia and industry to collaborate and provide data on the carbon intensities of various energy sources, enabling better-informed decision-making. The Initiative utilizes widely accepted life cycle analysis meth...
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Our R&D spend encompassed sustainability focused solutions to improve our business and energy efficiency, lower our carbon footprint and enhance company circularity, as well as supporting the global energy transition towards a lower carbon emissions future. R&D focus areas 2021 spend ($ million) 2022 spend ($ mill...
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Examples of ongoing R&D initiatives include: • Innovative technologies and processes for the utilization of CO2 in various applications to deliver alternative sequestration pathways; • Cost-competitive technology for large-scale CO2 capture from air for reusing it for e-fuels or storage; • New technologies that...
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The latest addition to the network is our Abqaiq Plant, the largest crude stabilization plant in the world. It joins Khurais Producing facility and our ‘Uthmaniyah gas plant. Aramco is the only major energy firm represented — a testament to our commitment to IR 4.0 technologies and to the scale of our ongoing dig...
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Third, the use of data analytics and predictive modeling has enabled our engineers to anticipate potential disruptions more effectively. Real-time data acquisition from well to wheel Online monitoring and optimization of the Company’s facilities from source to sink 10,000+ Input data points 167 Aramco faci...
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Aramco Sustainability Report 2022 42
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Safe operations and people development At Aramco, safety is at the heart of everything we do. It is a core value that helps protect our people, assets, and environment. We are committed to a strong safety culture across our employees, contractors, and suppliers. We prioritize the training of our workforce to per...
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We are committed to respecting and protecting the rights of every single member of our workforce (employees and contractors); we expect and support our suppliers to do the same. Material topics Relevant UN SDGs Workforce protection Number of fatalities Lost time injuries/illnesses rate (number of LTI cases x 20...
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Learn more about how Aramco developed a safety strategy and worked on imbedding it as part of its culture since the 1940s.Scan here * Metric reported for the first time externally. 4343
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Our approach Aramco is committed to providing a safe workplace for our people. We believe that all injuries are preventable. We conduct business in a manner that strives to prevent incidents that have the potential to impact people, damage assets, or harm the environment. We are committed to developing our people,...
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Safety performance The table below provides an overview of our HSE performance over the past three years. 2022 2021 2020 Number of fatalities1 52 12 12 Total recordable case frequency1 (total recordable incidents x 200,000/ total work hours) 0.050 0.054 0.044 Lost time injuries/ illnesses rate1 (number of LTI c...
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Each case has been fully investigated and the lessons learned have been communicated to all parties. We continue to work closely with our contractors to build a strong safety culture and prevent such incidents. Workforce protection Responsible Care Responsible Care is the global chemical industry’s voluntary initia...
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What are we doing? Transportation safety initiatives Safety at sea We operate a fleet portfolio of over 270 vessels with more than 7,000 employees and contractors traveling over 1.4 million nautical miles. Our strategy is to enable safe behavior through focused international maritime, safety, and environmental stand...
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During 2022, we carried our people on some 29,000 flights traveling some 4 million miles. Our flights support Aramco’s operations by providing transportation, special missions, search and rescue, and evacuation services to our onshore and offshore operations. We maintain the highest level of safety standards while...
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In addition, we piloted a number of AI solutions in vehicle monitoring systems that detect fatigue, distractions, drowsiness, and other negative driving conditions. Recent initiatives: • Introduced a “Safety Corridor” initiative to reduce accidents on an 80 km stretch of the Dhahran - Al-Hasa Highway. • A traffic ...
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Emergency preparedness Aramco invests heavily in incident prevention, while also taking every measure to ensure emergency readiness. The Company has a dedicated Corporate Emergency Management Taskforce to ensure resilience and readiness through pre-planning and risk-based site-specific emergency response plans. ...
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Driven by this success, the Company implemented a Turnaround Safety Index (TSI) focused specifically on contractors performing turnaround and inspection. In 2022, over 670 TSI inspections were completed. During the fourth quarter of 2022, we launched the Rig Safety Index (RSI) that monitors onshore and offshore...
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In line with the Company’s focus on digitalization, we are transforming our training from a conventional classroom-based learning experience to a hands-on competency-based learning approach. Through immersive virtual reality (VR) simulations, trainees are able to conduct exercises in real- time, and we have intro...
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Off-road navigation and trip management solutions are also deployed to enhance the safety of the workforce working off-road. What are we doing? In 2022, over 1,100 emergency exercises were conducted to train people and evaluate improvement opportunities Aramco Sustainability Report 2022 46 Safe operations and pe...
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Safety Management System Aramco’s Safety Management System (SMS) drives our commitment to safety across our business. It provides a framework that integrates occupational and process safety, and assists business units in meeting safety expectations. Our SMS was developed following comprehensive benchmarking with i...
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Tier 1 process safety events In 2022, the Company recorded 11 Tier 1 process safety events, all of which were investigated, with root causes identified and corrective actions implemented. 2022 2021 2020 Number of tier 1 process safety events1 11 11 9 Out of the 11 events, nine occurred at in-Kingdom wholly-own...
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This technology is now being rolled out for all sour wells in Saudi Arabia. What are we doing? 1. For 2020, the reporting boundary was Company in-Kingdom. As we progress on our reporting journey and our controls around ESG data mature, for this metric from 2021 onwards, the reporting boundary has been expanded to ope...
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Our people Aramco is home to over 70,000 individuals from all over the world, comprising more than 85 nationalities. We are proud of the multiculturalism and diverse thinking that our community brings to the Company and strive to maintain an environment of respect and understanding. As per our commitment to the ...
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We seek to make positive and lasting contributions in the areas of governance, transparency, respect for the rule of law, and social and economic development. We comply with local laws and respect international human rights principles, such as, the Universal Declaration of Human Rights, the Fundamental Conventi...
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Workers’ Committee Aramco Workers’ Committee is a team of selected employees who voluntarily represent all workers. The Workers’ Committee mandate is to present recommendations to management related to the areas listed below: • Promoting safety and occupational health; • Improving workers’ health and hygiene; • Impr...
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We hire and promote the most qualified individuals, regardless of age, disability, gender, nationality, race, religion, or any other applicable protected category. Aramco has a non-retaliation policy which empowers our people to speak freely and confidently about issues and concerns that could improve our operati...
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At Aramco, we believe that speaking up is an employee’s right. We ensure that all sites have grievance mechanisms in place for our employees to raise any concerns in confidence. 2022 2021 2020 Number of grievances raised* 293 236 297 Sites with a grievance mechanism in place* (%) 100% 100% 100% * Metric reporte...
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Employees receiving a pe/r.altformance review (%) 90.6 98.4 96.8 90.6 2020 2021 2022 Attrition rate* (%) 2.4 7.8 2.8 2.4 2020 2021 2022 Our 2022 Forbes award For the third year in a row, Aramco was ranked number one on the 2022 Forbes “Top Companies to Work for in the Middle East” list and the highest rated company i...
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To assist leadership in enhancing the engagement of their people, a new set of Employee Experience Tools for leaders was created in relation to each key theme. In total, 16 new tools were created as part of an interactive online toolkit. These include one-to-one conversation and team conversation guides. These t...
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What are we doing? 2020 2021 2022 6.4 5.61 5.11 Labor practices Diversity and inclusion We are proud of the diversity and inclusivity our community brings to the Company with our people being from more than 85 different nationalities. We strive to maintain an environment of mutual respect and understanding. We are...
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This focus and effort, led by a dedicated diversity and inclusion team has resulted in the number of female hires increasing year-on-year for the past five years. 2022 2021 2020 Number of female employees* 4,503 3,802 3,400 Female (%) of total employees 6.4% 5.6%1 5.1%1 Female (%) of total number of new hires*...
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The CPP is a 10-month college preparatory program where students receive support to prepare them for the challenges of a top-tier university. During 2022, our Security organization and Industrial Services organizations have developed and hired women into roles they had not traditionally held previously, e.g., se...
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Hired graduates (number) 1,459 460 1,447 1,459 2020 2021 2022 Apprentices (number) 1,728 1,001 1,369 1,728 2020 2021 2022 Interns (number) 3,190 641 1,922 3,190 2020 2021 2022 Embracing diversity and inclusion • Launched a Global Diversity Awareness Campaign. • Conducted a Disability Inclusion Awareness Campaign, in c...
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During 2022, we welcomed over 6,000 new people joining us either full-time or part-time. There was a: • 26% increase in the number of apprentices (1,728 in 2022 versus 1,369 in 2021); and • 66% increase in the number of interns (3,190 in 2022 versus 1,922 in 2021) joining Aramco. Education and training As a globa...
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What are we doing? Aramco Sustainability Report 2022 52 Safe operations and people development
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Total hours of training and development* (million hours) 2020 2021 2022 13.012.8 12.1 In 2022, we recorded 13 million T&D hours provided to upskill our workforce and ensure they are provided with strong support to perform their roles effectively. In 2022, over $200 million was invested in the following training pr...
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In addition, to support our contractor workforce, we have developed a Contractor Well-Being Program that provides a range of free services including a 24/7 hotline, video counseling and online resources. The program is complimented further by the Contractor Passport Solution that tracks salary payments and livin...
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Riyadh Jeddah Al-Hasa Abqaiq Dammam Ju’aymah Jubail Nairyah Khafji National Training Centers National Training Centers (NTCs) are the product of a strategic partnership between Aramco, selected government entities, and the private sector, which started in 2008. The established NTCs focus on the training of young Sa...
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To enable front-line leaders to provide greater support for their employees, Aramco introduced the “Supporting Employee Well-Being for Leaders” training, together with a globally recognized third-party vendor. During the year, over 600 leaders were trained in the pilot phase of the project, with a goal to train a...
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The program works with a qualified vendor to link to a global network of mental health professionals who provide one-on-one counseling, life coaching, digital health programs, and many more offerings. The service is completely confidential and has been invaluable in helping employees to manage stress, mental hea...
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Aramco Sustainability Report 2022 56
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Minimizing environmental impact We aspire to create a legacy of projects that improve natural habitats and protect shared resources, through best practice environmental management systems and initiatives that promote positive outcomes. We apply technology, innovation, and resources to invest in environmental prot...
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SO 2 emissions2,3 (kilotonnes) 167 163 141 1671 2020 2021 2022 Environmental management systems Since 2012, our operations have been supported by a strong environmental management system based on ISO 14001 standards. As we strive to be consistent with local environmental regulations while following international be...
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We are embedding circularity models in activities ranging from circular material management to environmental performance management to our investment master plan. To date, we have launched over 20 initiatives, in critical areas such as water conservation, waste management, circular procurement services, circular...
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We are expediting these projects in line with our commitment to environmental stewardship and to support our efforts in fulfilling our compliance obligations. Tail gas treatment is gaining importance as the preferred technology to address stipulations on sulfur recovery systems in the latest revision of environm...
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2. For this metric, the reporting boundary has been reclassified from operational control excluding ATC, ASC, AOC and SAAC to operational control for 2022, 2021 and 2020. This is because ATC, ASC, AOC and SAAC are office-based entities and therefore, have no SO2 emissions 3. The Jazan Refinery (our downstream refiner...
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We are working to quantify NOx emissions from our point sources and ensure they follow corporate and governmental mandates. We have improved our relative accuracy testing from every two years to every quarter on all applicable facilities. Increased frequency of testing will allow us to identify the NOx emissions...
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Regrettably there were 15 hydrocarbon spills that occurred in 2022 with a total hydrocarbon volume of 142,8851 barrels. Two major onshore oil spills were responsible for more than 99% of the total oil spills. A volume of 130,000 barrels was spilled due to a ruptured pipe in the pipeline corridor near Shedgum in ...
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Remediation activities were ongoing at year-end to rehabilitate the affected area. We continuously invest in efforts to ensure lessons are learned from any hydrocarbon spills and shared across our business. In 2022, we improved our asset integrity, process safety and prevention measures through the Company’s en...
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Governance framework With the planet experiencing a dangerous decline in nature as a result of human activity, the United Nations Biodiversity Conference (COP 15) concluded in Montreal, Canada, in December 2022 with 196 countries, including Saudi Arabia, signing up to the Kunming- Montreal Global Biodiversity Fram...
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The Company continues to work to update its operating procedures and standards to ensure we meet the commitments of the Biodiversity Protection Policy and support the aims of the GBF. We have continued to invest in biodiversity and in 2022 established a dedicated biodiversity team by forming our Environmental Bio...
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This occurs when the biodiversity gains through our conservation projects outweigh the overall negative impacts on biodiversity as a result of our operations on our owned land. In 2022 (our baseline), our NPI* was 53%2 and we have set a target to increase the NPI by 30% by 2025. What are we doing? The KPI is based...
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These workstreams are delivered by investing in four enabling elements: a strong governance framework, targeted mapping and monitoring, applied research, and education and awareness. This biodiversity framework aligns with Ipieca guidelines on biodiversity protection and the LEAP (Locate, Evaluate, Assess, Prepar...
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We will not operate in designated world heritage sites, strict nature reserves, or wilderness areas, and will ensure our operations result in no net loss of biodiversity and ecosystems services in national parks, key biodiversity areas and vulnerable bird habitats. During 2022, we designated an additional two...
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We invest in biodiversity education and awareness The Company constructed educational visitor centers at our Mangrove Eco-Park in Rahimah Bay and Shaybah Wildlife Sanctuary in the Rub’ al-Khali. Minimize We minimize our impacts Restore We restore degraded habitat Offset What we cannot avoid, minimize, or restore...
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4 5 3 2 6 7 1 8 9 10 11 12 Saudi Arabia Biodiversity at Aramco An impressive array of biodiversity exists within Saudi Arabia, including over 2,400 plant species, 1,230 marine fish species, 499 bird species, 266 coral species, 117 mammals, 107 reptiles, eight amphibians, eight freshwater fish, and numerous inverte...
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We coordinate with and contribute to national biodiversity strategies within Saudi Arabia and wherever we operate. We have created digital habitat models that identify and show the potential habitat of every species that resides in the Kingdom. These habitat models enable Aramco to identify, prioritize, avoid, a...
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Biodiversity Protection Areas The Company identifies and designates its own Biodiversity Protection Areas over valuable patches of habitat, which we avoid operating in. An internal procedure outlines the steps required to designate Aramco Biodiversity Protection Areas over high quality habitat, requiring a third-...
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Biodiversity Protection Areas contain at least 55 endemic species or subspecies (plants and animals that are found only in the Arabian Peninsula). Our protected sites: 1 Shaybah Wildlife Sanctuary 2 Rahimah Bay Mangrove Eco-Park 3 Abu Ali Island 4 Tanajib Biodiversity Protection Area 5 Manifa Biodiversity...
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In 2022, the Company increased its Biodiversity Protection Network by 20%, and currently has twelve designated sites totaling over 985 km2. Each of these sites is recognized as fulfilling International Union for Conservation of Nature protected area criteria and protects regionally or internationally significant ...
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Wetlands strategy Water plays a vital role in the ecology and environmental health of the nation. In 2022, a Company-wide wetlands strategy was developed, consisting of two major themes that reflect the intersection of the Company with Saudi Arabia’s environment: • Restoration and protection of natural wetlands ...
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This led to the designation of a new wetland Biodiversity Protection Area in 2022. We will continue designating priority natural wetlands as Biodiversity Protection Areas. We are also developing ecosystem service assessments to measure the full range of benefits from constructed wetlands in addition to their was...
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Mangroves planted (millions) 2020 2021 2022 24 13 6 Nature-based solutions Nature-based solutions are actions that protect, sustainably manage and restore natural and modified ecosystems in ways that address societal challenges effectively and adaptively, to provide both human well-being and biodiversity benefits....
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Tree planting using drones We have piloted drone technology for planting native trees and monitoring growth of these trees and the mangroves. The pilot: • Enabled seed germination technique for drone plantation; • Conducted soil and water analysis; • Planted 100,000 native trees using drones; and • Achieved a plan...
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We are also helping to rescue and rebuild important reefs in the coastal waters of the United States, the Caribbean, and Mexico through grants by the National Fish and Wildlife Foundation’s Coral Reef Conservation Fund. Seaweed Seaweed is a carbon negative crop and has a high potential for climate change mitigati...
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In 2022, we set an interim target to plant another 31 million mangroves along the Arabian Gulf and Red Sea shorelines by 2025. This plantation target will support marine ecosystems adjacent to the Company’s operation in Abu Ali, Rahima, Yanbu’, and Jazan. To date, we have planted accumulatively 24 million mangroves...
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Water management Aramco’s approach to water Headquartered in one of the most arid environments in the world, water management has been an essential focus of our business since our inception. Today, that means: • Assigning an economic value to groundwater allocated for projects to incentivize the use of alternative...
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We also conducted water conservation assessments to reduce freshwater consumption through the identification of gaps, and the implementation of best practices and water conservation initiatives. As part of our efforts to improve our monitoring and reporting of all our operations, we expanded the reporting bounda...
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Produced water treatment technologies, in which a high salinity water is pretreated then desalinated using one of these processes, eliminating the need to use groundwater as wash water altogether. 2 1 Wastewater and discharges to water We recognize the need to responsibly manage and treat water prior to returnin...
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2022 2021 2020 Hydrocarbon discharge to water1 (barrels) 16.42 30.7 20.2 Freshwater consumption1 (million m3) 93.62 94.6 90.2 Freshwater withdrawal1 (million m3) 136.6 137.3 142.9 1. As we progress on our reporting journey and our controls around ESG data mature, for this metric, we have expanded the report...
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The Company continues monitoring hydrocarbon discharge to water data through the HC2W dashboard. In 2022, we further developed the dashboard to enhance the use of data and reduce the chance of error while reporting data. The HC2W metric is the total amount of hydrocarbons in barrels (bbl) that the Company systema...
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These measures enhance our precautionary approach and risk management practices toward the environmental management of our operations, which require us to maintain specific environmental assessments and promote these best practices with our supply chain partners. Drilling fluids recycling Over the years, we have ...
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With relatively large volumes of water produced along with hydrocarbons in oil and gas fields, a sustainable produced water management solution was developed and piloted to recycle and reuse water by transforming its ionic properties. The technology comprises a unique combination of a custom-designed pretreatment ...
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