1、Investing in growth Innovating for sustainabilityAramco Sustainability Report 2022We are Aramco,one of the worlds largest integrated energy and chemicals companiesOur approach to sustainability reportingIn this Sustainability Report,we provide an overview of how we have integrated sustainability wit

2、hin our corporate strategy and operations;the material sustainability issues that impact our business and stakeholders;and a summary of key initiatives and sustainability performance during 2022.Reporting standardsThe following sections of this report have been prepared with reference to and guidanc

3、e from the following frameworks,standards and guidelines:Reporting guidelines for our Environment,Social and Governance(ESG)disclosures:Ipieca;For developing and reporting our materiality matrix:Global Reporting Initiative(GRI)Sustainability Reporting Principles;For measuring and reporting on our gr

4、eenhouse gas(GHG)emissions:Greenhouse Gas Protocol;and For developing and reporting our health and safety performance metrics:Occupational Safety and Health Administration(OSHA)Standards and the American Petroleum Institute Recommended Practices.Reporting boundaries,scope and basis of preparationThi

5、s report contains data for the full year 2022(January 1 December 31).Where available,we have compared 2022 performance with 2021 and 2020 data.We have followed industry guidance on defining the boundary scope for performance data.For clarity and transparency,the specific reporting boundaries of each

6、 metric for 2022,2021,and 2020 data have been noted in detail on page 86 in the Data section of this report.As we progress on our reporting journey and our controls around ESG data mature,we have expanded the scope of our reporting for some metrics,which were limited to the Kingdom of Saudi Arabia i

7、n 2021,to cover our operational control reporting boundary for 2022.Acquisitions made during the year will not be reportable until after the first full year of operation.Therefore,acquisitions made during 2022 will be reportable from FY2024 onwards.Any site that is not fully operational will be excl

8、uded from reporting to ensure effective data controls and systems are in place.The basis of preparation on how we measure and report on the sustainability performance metrics that undergo external independent assurance can be found online here.For the avoidance of doubt,SABIC and S-Oils non-financia

9、l performance data are not in the scope of this report.Both subsidiaries are publicly listed and issue separate annual sustainability reports.Internal controls and data validationAll figures in this report represent the latest available,internally validated data,unless specifically referenced.Some o

10、f the totals presented may reflect the rounding-down or rounding-up of subtotals.Aramcos internal reporting systems capture and record the data used in this report.All data has been subject to internal validation,including data reviews by the reporting businesses and internal subject matter experts.

11、Independent assuranceThird-party independent assurance has been sought against 16 prioritized performance metrics,including GHG emissions and fatalities,in accordance with the revised International Standard on Assurance Engagements 3000(ISAE 3000 revised).Data that has undergone assurance has been r

12、eferenced throughout the report and the assurance statements can be found online here.More information on assured data and assurance statements can be found online hereCover image:To protect the highly sensitive ecosystem in Manifa,we followed strict environmental policies enforcing drilling,land,an

13、d air protection measures.We also designed a causeway to improve and increase the density of marine life.Learn more about Manifa oil field.About this reportInvesting in growthInnovating for sustainabilityOur visionAramcos vision is to be the worlds preeminent integrated energy and chemicals company,

14、operating in a safe,sustainable and reliable manner.Our missionAramco strives to provide reliable,affordable,and more sustainable energy to communities around the world,and to deliver value to its shareholders through business cycles by maintaining its preeminence in oil and gas production and its l

15、eading position in chemicals,aiming to capture value across the energy value chain and profitably growing its portfolio.ContentsOverviewAt a glance .02Sustainability and our strategy.04 Chairmans message .06President and CEOs message.07Executive summary.08Our stakeholders .10Sustainability framework

16、 .12Materiality.13DataOur metrics .86Abbreviations,terms and glossary.94Forward-looking statements.99Governance .83Our sustainability focus areasClimate change and the energy transitionsee page 19Safe operations and people developmentsee page 43Minimizing environmental impactsee page 57Growing socie

17、tal valuesee page 710101OVERVIEWCLIMATE CHANGE AND THE ENERGY TRANSITIONSAFE OPERATIONS AND PEOPLE DEVELOPMENTMINIMIZING ENVIRONMENTAL IMPACTGROWING SOCIETAL VALUEGOVERNANCEDATAOur business in 2022Net income$161(billion)Total hydrocarbon reserves1258.8(billion boe)Net refining capacity4.1(MMbpd)Tota

18、l hydrocarbon production213.6(MMboed)Employees70,496as at December 31,2022R&D spend4$1.2(billion)Lost time injuries/illnesses rate5 0.014(per 200,000 work hours)Countries50+in which we operate$1.5 billion Sustainability FundAs part of a long-term strategy of investing(e.g.,via our contribution t

19、o the Oil and Gas Climate Initiative(OGCI)in innovative solutions to achieve lower carbon and lower energy intensity,Aramco established a new$1.5 billion Sustainability Fund to invest in technologies needed to address climate challenges.Voluntary carbon marketAramco participated in the first carbon

20、credit auction held in the MENA region through the Regional Voluntary Carbon Market.Circular economyFor the first time in the Middle East and North Africa(MENA)region,Aramco and its partners produced International Sustainability and Carbon Certification+(ISCC+)certified circular polymers from plasti

21、c waste derived oil at SATORP.1.Hydrocarbon reserves of Saudi Arabian Oil Company(the Company)as at December 31,2022,under the Concession agreement.2.Total hydrocarbon production(mboed)is derived from MMscfd(for natural gas and ethane)by dividing the relevant product production by 5.400(in the case

22、of natural gas)and 3.330(in the case of ethane).3.Excludes SABIC Agri-Nutrients and Metals(Hadeed)businesses.4.Total Group R&D including SABIC.5.This figure has undergone external limited assurance in accordance to the ISAE 3000(revised).The assurance report can be found online here.Maximum Sust

23、ainable Capacity(MSC)12.0(MMbpd)Capital expenditures$38(billion)Net chemicals production capacity356.3(MMtons/year)Upstream carbon intensity510.3(Kg CO2e/boe)Nationalities85+globallyAramco Sustainability Report 202202At a glanceReinforced supply chainThrough its In-Kingdom Total Value Add(iktva)prog

24、ram,Aramco signed over 90 corporate procurement agreements valued at$17.3 billion(SAR 64.9 billion)with manufacturers in Saudi Arabia,which are expected to reinforce Aramcos robust supply chain.Our Jafurah unconventional gas fieldContaining an estimated 200 trillion standard cubic feet(scf)of natura

25、l gas,the Jafurah unconventional gas field development is now underway,targeting one of the largest liquid-rich shale gas plays in the Middle East.The Jafurah facility is expected to play a key role in the Saudi Arabian domestic energy sector,displacing significant volumes of oil with gas and in tur

26、n lowering emissions.Maximizing liquids-to-chemicals value chainAs part of plans to utilize more hydrocarbons for non-combustion uses,Aramco agreed to develop one of the worlds largest refinery-integrated petrochemical steam crackers in South Korea through its S-Oil affiliate,which will convert crud

27、e oil into petrochemical feedstock.Blue ammonia and blue hydrogen certificationAs we explore the development of blue hydrogen as a commercial opportunity that could support emissions reductions in hard-to-decarbonize sectors,two Aramco subsidiaries(SASREF and SABIC Agri-Nutrients(AN)received the wor

28、lds first independent certification for production of blue ammonia and blue hydrogen.Manifa field developmentThe Manifa field development project was recognized as the Upstream Project of the Year at the 2022 Middle East Energy Awards for its development,management,and production,and its innovative

29、solutions for protecting the fragile marine ecosystem in Manifa Bay.Building one of the worlds largest carbon capture and storage hubsA joint development agreement between Aramco,SLB and Linde was signed to construct one of the worlds largest planned carbon capture and storage(CCS)hubs,in Jubail,Sau

30、di Arabia,with a capacity target of 9 MMtpa by 2027.0303OVERVIEWCLIMATE CHANGE AND THE ENERGY TRANSITIONSAFE OPERATIONS AND PEOPLE DEVELOPMENTMINIMIZING ENVIRONMENTAL IMPACTGROWING SOCIETAL VALUEGOVERNANCEDATAIncreasing shareholder and societal value sustainablyAramco supports the aims of the Paris

31、Agreement;all of us have a vested interest in protecting the world from human-caused climate change while pursuing economic and social sustainable development.As one of the worlds largest integrated energy and chemicals companies,we have an important role to play along our value chains.As the world

32、emerges from the effects of COVID-19 lockdowns and deals with the on-going impacts of the conflict in Ukraine,we are facing significant global energy challenges.In Aramcos view,these challenges have confirmed the worlds need to increase oil and gas investments,especially capacity development.Importa

33、ntly,investing in conventional resources does not mean that alternative energy resources and technologies should be ignored.We believe that any energy transition requires a new global energy consensus built on three long-term strategic pillars:Recognition by policy makers and other stakeholders that

34、 supplies of affordable conventional energy will continue to be required over the longer term;Further reductions in the carbon footprint of conventional energy and improved energy intensity across the economy are priorities,and technology will be a critical enabler for this;and New,lower carbon ener

35、gy sources,steadily complementing proven conventional resources.At Aramco,we are addressing all three.We are investing to increase our maximum sustainable oil production capacity to 13 million barrels per day by 2027.We are also growing our gas production,potentially increasing it by more than half

36、through 2030 with a mix of conventional and unconventional gas.At the same time,we are working to lower our upstream carbon intensity,our gas flaring intensity,and our methane intensity,which are already among the lowest in the world.We are also intensifying efforts to advance key enabling technolog

37、ies,particularly CCS,which is mission-critical to a sustainable future.Importantly,we are gradually adding new,lower carbon energy products to our own portfolio,such as blue hydrogen and blue ammonia,renewables,and low carbon synthetic fuels.Meanwhile,chemicals will become a much larger and more str

38、ategic part of our portfolio,growing the non-combustible,and lower emission,uses of oil.This is our plan to be part of a practical,stable,and orderly energy transition.We must partner to drive innovation and value on an unprecedented scale and speed to deliver results across the three pillars succes

39、sfully.In our view,technologies of the Fourth Industrial Revolution are ripe for such partnerships,especially the rapid digital transformation of our industry.The right digital investments now could help deliver greater efficiency,lower costs,lower emissions,higher reliability,and higher profits ove

40、r decades.Transforming the massive existing worldwide energy system,and delivering a secure and sustainable future for everyone,is a truly formidable task that will require both individual and collaborative efforts across industries,along value chains and involve governments,regulators and consumers

41、.Positioning Aramco for the futureAramco Sustainability Report 202204Sustainability and our strategyOur strategic themesOur key enablersLocalization and the promotion of national championsAramco focuses on four strategic themes across its businesses:The Company facilitates the development of a diver

42、se,more sustainable and globally competitive in-Kingdom energy ecosystem to underpin the Companys competitiveness and support the Kingdoms economic development.PeopleAramco recognizes the need to prepare its workforce for the future,thereby ensuring its capabilities match the requirements of its str

43、ategies,by advancing technical and professional skills,developing commercial and leadership competencies and supporting the progress of localization,and focusing on diversity and inclusion.TechnologyAramcos technology program strives to develop new solutions for its Upstream and Downstream businesse

44、s,and to help in diversifying its product portfolio,grow its business sustainably and achieve its net zero ambition.Portfolio optimizationAramco seeks to unlock value,enhance its capital structure and reallocate capital to higher growth and return investments.Aramco has a comprehensive and disciplin

45、ed internal approval process for capital expenditures,new projects and debt issuance.Aramcos strategy requires a number of enablers to be successful,including:As the principal engine of value generation,the Company intends to maintain its position as the worlds largest crude oil company by productio

46、n volume and one of the lowest cost producers.The Companys vast reserves base,spare capacity,and unique operational flexibility allow it to effectively respond to changes in demand.Upstream preeminenceDownstream integrationThe Company has a dedicated linkage to domestic and internationally wholly-ow

47、ned and affiliated refineries and chemicals operations that are critical to monetizing its upstream production.Through continued strategic integration,the Company captures additional value across the hydrocarbon chain.Lower carbon initiativesThe Company plans to reduce the net carbon emissions of it

48、s operations and to support the global energy transition through the development of lower carbon products and solutions across the energy,chemicals,and materials sectors.Our sustainability focus areasClimate change and the energy transition See page 19Safe operations and people development See page

49、43Growing societal value See page 71Minimizing environmental impact See page 57Our strategy0505OVERVIEWCLIMATE CHANGE AND THE ENERGY TRANSITIONSAFE OPERATIONS AND PEOPLE DEVELOPMENTMINIMIZING ENVIRONMENTAL IMPACTGROWING SOCIETAL VALUEGOVERNANCEDATAInvesting in growthWhen we talk about sustainability

50、 at Aramco,we understand that it is about balancing the economic benefits to our owners,the social value and utility that our activities and products generate for customers and consumers,and minimizing any negative environmental and social impacts,to build something that will last:a company that wil

51、l still be standing strong,generations from now.At Aramco,we recognize the challenge of sustaining our business and supporting the worlds climate ambitions.As we set out in this report,all plausible pathways to global net zero show that ample supplies of conventional energy will still be needed in 2

52、050 and beyond.With one of the lowest upstream carbon intensities per barrel of oil equivalent and an ambition for near zero routine flaring,Aramco is ideally placed to help meet that demand.Demand continues to rise,though not always reliably matched by global supply.2022 provided an unwelcome remin

53、der that high and volatile energy prices are deeply damaging to the global economy.This could also impede the energy transition itself by raising the costs related to energy policies as well as the cost of material inputs needed for a lower carbon energy system.At a time of great geopolitical stress

54、 and underinvestment across our industry,we view our commitment to invest in new upstream production as a responsible course.However,ensuring security of supply is not where Aramcos responsibilities end.We also have a responsibility to the environment and to the communities in which we are privilege

55、d to operate.In 2022,we took further action to reduce Aramcos emissions impact,by enhancing our energy efficiency,participating in the Kingdoms inaugural carbon credit auction,and unlocking the Kingdoms first large-scale carbon sequestration opportunity.All of these activities are designed to ensure

56、 that as long as oil is needed,a barrel of Aramco crude will be among the least carbon intensive on the market.We are also continuing to support a global orderly energy transition towards a lower carbon emissions future,as we seek to develop blue hydrogen,advanced fuel combustion systems and lower c

57、arbon synthetic fuels.While the climate challenge remains central,for Aramco,sustainability also means having a robust local supply chain,operating in resilient local communities,and being part of a vibrant Saudi economy that excels in many other fields besides crude oil.As you will see in this repo

58、rt,we continue to make progress in all these areas.The Companys recent achievements in supply chain localization including the first ever“made in Saudi Arabia”drilling rigs are a personal highlight for me.As ever,our gratitude goes out to The Custodian of the Two Holy Mosques King Salman bin Abdulaz

59、iz Al Saud,and His Royal Highness Prince Mohammed bin Salman Al-Saud,Crown Prince and Prime Minister of the Kingdom of Saudi Arabia.Guided by their vision,Aramco is a global energy and chemicals powerhouse securing our future as the worlds indispensable energy supplier.H.E.Yasir O.Al-RumayyanChairma

60、n of the Board of DirectorsWe are also continuing to support a global orderly energy transition towards a lower carbon emissions future,as we seek to develop blue hydrogen,advanced fuel combustion systems and lower carbon synthetic fuels.”Aramco Sustainability Report 202206Chairmans messageInnovatin

61、g for sustainabilityOver the last year,there has been increasing acceptance of the fact that there needs to be a better balance between maintaining energy security,energy affordability and environmental sustainability.As you will see in this years Sustainability Report,Aramco has strengthened its un

62、ique and central role in providing the world the reliable energy it requires for an orderly energy transition.In 2022,we made significant progress on interim targets toward our net zero ambition.We also proudly established a$1.5 billion Sustainability Fund through Aramco Ventures,which will invest i

63、n technologies that will make a difference in addressing the challenge of balancing energy security and sustainability.In addition,we announced plans for one of the largest scale CCS hubs in the world.Aramco,in partnership with SABIC Agri-Nutrients,shipped 25,000 metric tonnes of the worlds first co

64、mmercially accredited blue ammonia to South Korea in 2022.We have made significant strides in increasing diversity in the workplace,employing more women and people with disabilities,including a 23%increase in the number of women in leadership roles at Aramco.As the world seeks to strike the right ba

65、lance with the energy transition,Aramco is maintaining positive momentum through our ambitious chemicals program and a focus on the materials transition.We are striving to convert up to 4 million barrels of liquids-to-chemicals per day by 2030.In addition to significant advancements in CCS and hydro

66、gen,we are also investing in renewables.We are also placing an enhanced focus on innovation and technology to maintain our leadership position as one of the lowest average upstream carbon intensive producers in the world,along with seeking to improve on our upstream methane intensity of 0.05%which i

67、s already well below the Oil and Gas Climate Initiative ambition(0.20%by 2025).Safety is one of Aramcos core values,and each health and safety incident must be reported and investigated to avoid recurrence.While we recorded enhancements in a number of safety metrics in 2022,unfortunately,we suffered

68、 the loss of five lives from our dedicated team of employees and contractors.These incidents underscore the critical importance of focusing on safety above all else,and we are fully committed to ensuring that we learn from these incidents,and that each and every person returns home safely,every day.

69、As you will see in the following pages of this report,Aramco continues to make significant progress in key areas of sustainability,biodiversity,localization and more.These improvements are a direct result of the talented people who work for Aramco,and credit goes to them for their commitment,passion

70、 and drive to succeed.While our Company has plentiful oil and gas reserves,our number one asset is our people.Our successes are their successes,and I look forward to achieving and reporting continued progress as we advance on our sustainability journey together.Amin H.NasserPresident and CEOAramco h

71、as strengthened its unique and central role in providing the world the reliable energy it requires for an orderly energy transition.”0707President and CEOs messageOVERVIEWCLIMATE CHANGE AND THE ENERGY TRANSITIONSAFE OPERATIONS AND PEOPLE DEVELOPMENTMINIMIZING ENVIRONMENTAL IMPACTGROWING SOCIETAL VAL

72、UEGOVERNANCEDATAOur sustainability performance1.This figure has undergone external limited assurance in accordance to the ISAE 3000(revised).The assurance report can be found online here.2.The Jazan Refinery(our downstream refinery)is excluded from our current GHG reporting because in 2022,it remain

73、s in the startup and stabilization phase and is not fully operational.Aramco is working to stabilize the refinerys operations and complete all necessary reporting configurations before the end of 2023.Reporting on the refinerys environmental and sustainability elements will commence immediately ther

74、eafter,in line with the Companys commitment to operational transparency.In line with our ambition to achieve net zero Scope 1 and Scope 2 GHG emissions across wholly-owned operated assets by 2050,we strive to provide reliable energy while maintaining leadership as one of the lowest carbon intensity

75、producers of hydrocarbon products.Committed to build one of the worlds largest CCS hubs(capacity target of 11 MMtpa by 2035)Established a$1.5 billion Sustainability Fund to invest in technology to address climate challenges An ambition to reduce our emissions by 52 MMtCO2e and lower our upstream car

76、bon intensity by 15%by 2035 Delivered an upstream methane intensity of 0.05%,well below the OGCI ambition(0.20%by 2025)Participated,and purchased credits,in the first carbon credit auction through the Regional Voluntary Carbon MarketClimate change and the energy transitionOur focus areasAramco has a

77、n important role in helping the world navigate the energy transition.What we do as a global community will determine the legacy we leave for future generations.Our intention is to be a part of the solution that creates a stable energy environment which fosters innovation and growth opportunities in

78、developing and developed countries.We are also committed to providing a healthy,safe,and rewarding environment for our people,our suppliers and communities where we operate while rehabilitating and mitigating the impact on our natural environment.We have identified four focus areas:Minimizing enviro

79、nmental impactGrowing societal valueClimate change and the energy transitionSafe operations and people developmentEach of these focus areas support Aramcos strategic themes and align with both Saudi Arabias Vision 2030 and the UN Sustainable Development Goals(SDGs),directly and indirectly.These elem

80、ents form our sustainability framework,which is presented on page 12.As part of ongoing materiality reviews and engagement with our stakeholders,we continue to build on this framework,and in 2022 we have measured and added an additional 25 ESG metrics(5 environmental metrics,17 social metrics and 3

81、governance metrics)to the 36 metrics we reported in 2021.These metrics allow us to continue to prioritize key issues most material to our Company and our stakeholders,which we discuss further on page 10.Scope 1 emissions2(MMtCO2e)55.7(2021:52.3)Scope 2 emissions2(MMtCO2e)16.1(2021:15.5)Upstream carb

82、on intensity1(kg CO2e/boe)10.3(2021:10.7)For more details,see page 19Aramco Sustainability Report 202208Executive summary1.This figure has undergone external limited assurance in accordance to the ISAE 3000(revised).The assurance report can be found online here.2.The Net positive impact(NPI)metric i

83、s a new KPI developed in 2022 and there is no prior year comparative.The purpose of the NPI is to aspire to achieve net gains for biodiversity and ecosystem services.This is when overall negative impacts on biodiversity are outweighed by the biodiversity gains that are achieved through conservation

84、projects.For the formula of the metric,please refer to page 86 in the Data section of this report.*Metric reported for the first time externally.Growing societal valueMinimizing environmental impactWe seek to grow value wherever we operate.With our biggest footprint in Saudi Arabia,we have invested

85、in the Kingdoms oil and gas ecosystem to enhance the reliability of our supply chain,providing employment and economic opportunities to thousands of Saudi nationals.Aramco entered into over 90 agreements with an estimated value of$17.3 billion to build long-term collaborative relationships with stra

86、tegic local suppliers Via our investments,encouraged suppliers to have an aggregate investment of over$600 million in capex,which also created over 4,000 jobs in our supply chain in Saudi Arabia Via iktva,facilitated creation of 31 new local manufacturers Spent$370 million on a range of global socio

87、-economic and environmental initiativesWe are committed to providing a safe and respectful working environment for all,on-site and within the community,supported by appropriate safety procedures,policies and resources.We strive to support,diversify,and empower our workforce.28%of direct hires were f

88、emale 50%of enrollment in Aramcos college preparatory programs were female 23%increase in female employees in leadership positions 26%increase in apprentices(1,728 in 2022 versus 1,369 in 2021)66%increase in interns(3,190 in 2022 versus 1,922 in 2021)Conducted over 1,100 exercises for emergency prep

89、arednessSafe operations and people developmentWe strive to conserve natural resources,apply circular models across our value chain,and to have a legacy of projects that improve both natural habitats and shared resources.Launching refurbishment and recycling programs for material streams and equipmen

90、t Over 20 initiatives incorporating circular economy principles Ambition to deliver net positive biodiversity and ecosystem impacts Continued investments in tail gas treatment facilities ISO 14001 certification for 98%1 of applicable facilities in 2022,with a view to complete coverage in 2023 Pursui

91、ng a water neutrality strategy Planted 11 million mangroves and an additional one million trees Fatalities1(number)5(2021:1)Tier 1 process safety events(number)11(2021:11)Female employees(%)6.4(2021:5.61)Freshwater consumption(million m3)93.61(2021:94.6)Hydrocarbon spills(number)15(2021:13)Net posit

92、ive impact on biodiversity*1,2(%)53(2021:N/A)iktva spend(%in-Kingdom)63(2021:59)Saudi nationals employed(%)90.9(2021:90.5)Social investment*($million)370(2021:N/A)For more details,see page 43For more details,see page 57For more details,see page 710909OVERVIEWCLIMATE CHANGE AND THE ENERGY TRANSITIONS

93、AFE OPERATIONS AND PEOPLE DEVELOPMENTMINIMIZING ENVIRONMENTAL IMPACTGROWING SOCIETAL VALUEGOVERNANCEDATAAramco recognizes that there is a social contract between our Company and the society within which it operates.Aramco interacts with a range of stakeholders to ensure that their perspectives are c

94、onsidered in the development of our business plans,sustainability plans and objectives;from project planning,to execution,long-term operations and of course,customer service.During the year,we engaged with key stakeholders on a diverse range of topics.Communication channels and examples of engagemen

95、t:Town halls Employee engagement surveys Employee networks Young Leaders Advisory Board Training Intranet Human Resources Recognition events Senior leadership meetings Safety meetings Quarterly engagement talks on current eventsDiscussion topics:Our vision and mission Corporate ethics and values Pro

96、fessional development Career progress Our strategy Sustainability Remuneration HSE performance Industry trends,current events Community support/volunteeringOur peopleCommunication channels and examples of engagement:Business performance reviews On-boarding program Supplier facility visits Workshops

97、Training programsDiscussion topics:Engagement on supply chain disruption and mitigation plans Safety requirements Agreeing ESG initiatives with suppliers to improve their capabilities Performance on quality,delivery and price Supplier Code of Conduct iktvaOur suppliers,partners and contractorsCommun

98、ication channels and examples of engagement:Customer feedback forms Face-to-face meetings Regular engagement between sales teams and our business customers Customer service centres Trade shows and conferences Email/newslettersDiscussion topics:Sustainability Health and safety performance Quality con

99、trolOur customersCommunication channels and examples of engagement:Semi-annual earnings calls External disclosures Direct investor communication Annual General Meeting Annual insurance renewals Revolving credit facility meetings Engagement with ClimateAction100+Conferences and non-deal roadshowsDisc

100、ussion topics:Climate change and the energy transition Environmental performance Human capital management Financial and operational performance and outlook Sustainability(including GHG emissions)related targets and performance Risk managementInvestors,financial institutions,rating agencies,and insur

101、ersCommunication channels and examples of engagement:Volunteer events Student mentoring Community events Citizen Advisory Panel meetings Employee service on community boardsDiscussion topics:Corporate donations Matching contributions Community needsLocal charities and nonprofit organizationsStakehol

102、der engagementAramco Sustainability Report 202210Our stakeholdersAramcos Co-ChairmanshipAramcos Co-Chairmanship of the Energy,Sustainability,and Climate Task Force was demonstrated through the year-long active negotiations that led to the publishing of a policy paper proposing three policy recommend

103、ations as part of the B20 communique to the G20,which were centred around enhancing global cooperation to:Reducing carbon intensity of energy use through multiple pathways;Ensuring a just,orderly,and affordable transition to sustainable energy use across developed and developing countries;and Enhanc

104、ing consumer level access and ability to consume clean,modern energy.Aramco B20 Co-Chairmanships message:“Meeting the worlds energy needs in a sustainable manner,without compromising energy security,reliability and affordability,is more essential today than ever before.The B20 Energy,Sustainability,

105、and Climate Task Force plays a key role in leveraging existing capacities and aligning collectively to solve energy transition challenges.”What are we doing?Communication channels and examples of engagement:Volunteer events Student mentoring Community events Citizen Advisory Panel meetings City Coun

106、cil meetings School board meetings Economic development associations Local industry groups meetings Quarterly community newsletters Plant tours Direct mailings ConferencesDiscussion topics:Social impacts of operations and expansion plans Pipeline awareness Workforce development Local content Communi

107、ty development and outreach Economic and social investments Charitable giving Emergency response and preparedness Environmental stewardship Health and wellness programs Mentoring programs and scholarships Small business supportOur local communitiesCommunication channels and examples of engagement:Bu

108、siness20(B20)Energy,Sustainability and Climate Task Force under G20 Indonesia 2022 Saudi ministries and regulators Various working groups in Ipieca US Environmental Protection Agency(EPA)American Petroleum Institute International Emissions Trading Association(IETA)American Fuel and Petrochemical Man

109、ufacturers American Society for Testing and Materials Community of ESG Practitioners Working Group within the World Economic Forum(WEF)OSHA International Sustainability Standards Board(ISSB)Saudi Organization for Chartered and Professional Accountants(SOCPA)OGCI Saudi Exchange,Capital Market Authori

110、ty,London Stock ExchangeDiscussion topics:Standards setting Compliance with regulatory standards Project specific discussions Supply disruptions Balancing the energy transitions Permits Knowledge sharing on best practices Collaboration on industry standardsRegulators and industry associations1111OVE

111、RVIEWCLIMATE CHANGE AND THE ENERGY TRANSITIONSAFE OPERATIONS AND PEOPLE DEVELOPMENTMINIMIZING ENVIRONMENTAL IMPACTGROWING SOCIETAL VALUEGOVERNANCEDATAOur sustainability frameworkOur sustainability framework sets out the areas that hold the greatest potential for our business to have long-term positi

112、ve impacts,connecting the UN SDGs and Vision 2030 to our four focus areas,and which encapsulate the material ESG topics stakeholders expect us to address.United Nations Sustainable Development GoalsSaudi Arabias Vision 2030Climate change and the energy transitionGrowing societal valueSafe operations

113、 and people developmentMinimizing environmental impactRenewableAttractingtalentIncreasingwomensReducingunemploymentDiversifying the economymanagementWaste Reducing airpollutionPreservingmarine lifeCombatingdesertificationEmpoweringsocietySupporting small and medium enterprisesInvesting for the long

114、termAlternative energy:hydrogen and ammoniaSaudi GreenInitiativeparticipation in the workforceenergyHow we workAramcos sustainability focus areasAramco Sustainability Report 202212Sustainability frameworkOur material ESG topicsDuring 2022,we performed an annual materiality1 refresh to assess whether

115、 our sustainability focus areas,ESG material topics,prioritized SDGs and metrics remain relevant and appropriate.The materiality assessment is an in-depth analysis of the risks and opportunities that we face in our stakeholders topics of interest and serves as an essential process for selecting key

116、sustainability topics for Aramco.The exercise consisted of:External stakeholder engagement (details on pages 10 and 11);Internal stakeholder engagement (details on page 10);Review of existing(e.g.,Ipieca sustainability guidelines)and upcoming standards (particularly the ISSB);and Peer benchmarking.F

117、rom our benchmarking,internal analysis,and stakeholder engagement,we identified and evaluated over 150 ESG topics.The outcomes of these assessments were tested with external and internal stakeholders to evaluate the relative significance of multiple topics impacts on our business.Prioritizing topics

118、 enables us to focus on where we can make meaningful differences.Upon completion of our materiality refresh exercise and extensive stakeholder engagement,a summary of conclusions and subsequent actions,where appropriate,are provided below:Our four focus areas and 13 material topics(plus our focus on

119、 corporate governance2)remain relevant and appropriate;Greater quantitative and qualitative information is required on some material topics,e.g.,biodiversity and human rights,which had no metrics in the prior year.Therefore,for this report,we have introduced metrics and more information on our appro

120、ach toward biodiversity and human rights;Reconfirmed that Aramcos roadmap to establish additional metrics to better monitor and report on our performance under each focus area and material topic is correct.Due to the increasing maturity of existing KPIs and new metrics,we have increased the number o

121、f KPIs and metrics in this report to 61(an increase of 25 metrics from the 36 metrics in the 2021 Sustainability Report);Ensure our metrics present a more complete picture of our total footprint.Therefore,various metrics(e.g.,water consumed and waste generated)have expanded in scope from Company in-

122、Kingdom to the operational control boundary level;Increase our prioritized SDGs from 10 to 12 by including SDG 4(Quality Education)and SDG 17(Partnerships for the Goals)more details on how weve contributed to these are provided over the next few pages;and Increasing the number of our metrics in our

123、Sustainability Report undergoing external assurance;from 6 metrics in 2021 to 16 metrics in 2022.1.The concept of“materiality”refers to the guidance on external reporting from the Global Reporting Initiative,and does not necessarily correspond to the concept of materiality used in connection with Ar

124、amcos financial reports.2.For more information on our governance,relevant material topics and our governance metrics,please refer to page 83 in this report and also page 90 in the 2022 Aramco Annual Report.1313MaterialityOVERVIEWCLIMATE CHANGE AND THE ENERGY TRANSITIONSAFE OPERATIONS AND PEOPLE DEVE

125、LOPMENTMINIMIZING ENVIRONMENTAL IMPACTGROWING SOCIETAL VALUEGOVERNANCEDATAMapping our material ESG topicsRelevant metric to monitor performance against each material topicClimate change(including GHG emissions)Scope 1 emissions(million metric tonnes of CO2e)Scope 2 emissions(million metric tonnes of

126、 CO2e)Upstream carbon intensity(kg CO2e/boe)Upstream methane emissions(metric tonnes of CH4)Upstream methane intensity(%)Flaring intensity(scf/boe)Flared gas(MMscf)Energy intensity(thousand Btu/boe)Example of our contributions to UN SDGsInvesting in more than 12 GW in solar and wind energy by 2030,e

127、xpanding CO2 storage capacity(e.g.,CCS and CCUS)to support clean and affordable energy production,as well as investing in innovative flaring reduction technologies contribute to improved access to affordable,reliable and sustainable energy for all.Given the material impact climate change can have on

128、 human life and economic opportunities,Aramco continuously invests in lower carbon energy and alternative energy sources.This will create jobs and contribute to economic growth.Being one of the worlds lowest upstream carbon intensity major producers in line with the Kingdom of Saudi Arabias Vision 2

129、030 toward cleaner energy,having an ambition to reach net zero emissions by 2050 from wholly-owned operated assets,and also leveraging our influence in non-operated assets,within the timeframe set by the Paris Agreement.As part of our commitment to this SDG in 2022,we planted 11 million mangroves an

130、d have set a target to plant another 31 million mangroves by 2025 along the Arabian Gulf and Red Sea shorelines.Partnering with organizations with a climate focus,such as the OGCI,Ipieca and WEF,via collaboration with governments,the private sector across the different industries and civil society.F

131、ocus areaClimate change and the energy transitionMaterial topicsImpactClimate change (including GHG emissions)For more details,see page 19Impact on our businessVery high High Moderate Impact on our stakeholdersAramco Sustainability Report 202214MaterialityRelevant metric to monitor performance again

132、st each material topicWorkforce protection Number of fatalities Lost time injuries/illnesses rate(number of LTI cases x 200,000/total work hours)Total recordable case frequency(total recordable incidents x 200,000/total work hours)Health performance*(number of overdue major health findings)x(100)/to

133、tal number of open major health findings)Process safety and asset integrity Number of Tier 1 process safety eventsHuman rights Number of grievances raised*Sites with a grievance mechanism in place*(%)Labor practices Attrition rate*(%)Number of company employees Number of female employees*Female(%)of

134、 total employees Female(%)of total number of new hires*Number of female employees in leadership positions*Female employees(%)in leadership positions Number of contractor employees*Employee engagement score*(%)Employees receiving regular performance reviews(%)Number of hired graduates Number of appre

135、ntices Number of interns Total hours of training and development*Average hours of training and development*(per employee)Examples of our contributions to UN SDGsAramco has various health and safety and well-being programs for our employees(mental health initiatives,workplace standards and technology

136、 to minimize exposing our workers to unnecessary risk).Aramco believes in lifelong learning and development and continues to provide world-class learning experiences that drive personal growth and effective operations at all levels of the Company through innovative platforms such as corporate e-Lear

137、ning,the Hosted University Programs,Advance Development Programs and others.Aramco is improving the gender balance of its workforce via a range of female empowerment initiatives.In Saudi Arabia,Aramco funds the STEMania program for school-age girls,offering university scholarships for science,techno

138、logy,engineering and mathematical degrees.We have strong policies and processes to manage our ethics,bribery and corruption risks,and ensure a decent working environment for our workforce.Focus areaSafe operations and people developmentMaterial topicsImpactWorkforce protectionProcess safety and asse

139、t integrityHuman rightsLabor practicesFor more details,see page 43*Metric reported for the first time externally.Impact on our businessVery high High Moderate Impact on our stakeholders1515OVERVIEWCLIMATE CHANGE AND THE ENERGY TRANSITIONSAFE OPERATIONS AND PEOPLE DEVELOPMENTMINIMIZING ENVIRONMENTAL

140、IMPACTGROWING SOCIETAL VALUEGOVERNANCEDATAMapping our material ESG topicsFocus areaMinimizing environmental impactMaterial topicsImpactLocal environmental impactBiodiversity and ecosystemsWater managementProduct stewardship and waste managementFor more details,see page 57Relevant metric to monitor p

141、erformance against each material topicLocal environmental impact Number of hydrocarbon spills Volume of hydrocarbon spills(bbl)Recovered hydrocarbon*(%)Hydrocarbon discharge to water(barrels)SO2 emissions(kilotonnes)Number of sites with ISO 14001 certification*(%)Biodiversity and ecosystems Net posi

142、tive impact(%)*Water management Freshwater consumption(million m3)Freshwater withdrawal(million m3)Product stewardship and waste management Industrial waste generated(metric tonnes)Industrial waste recycled*(%)Examples of our contributions to UN SDGsGiven water scarcity in Saudi Arabia,the Company h

143、as a large seawater treatment and injection network of facilities.Seawater is used as the primary source of water for oil production and to ensure clean water is available for our workforce and local communities.Embracing circular economy(reduce,reuse,recycle and remove)principles and business model

144、s across our operations and activities.For example,our recent scrap-to-commodity program successfully recycled over 200,000 drum containers and over 80,000 tons of steel.Reintroducing these materials to local manufacturers as feedstocks eases the pressure on raw materials extraction and allowed us t

145、o recover over$30 million of value.For more information,please refer to Aramcos circular economy section on our website.Aramco has systems in place to manage all discharged water to the sea,meeting Government requirements by investing in maintenance and monitoring systems while proactively managing

146、operations to avoid hydrocarbon leaks and spills by maintaining asset integrity throughout the life cycle.Committed to delivering biodiversity net gain in support of SDG15,Vision 2030 and the Saudi Green Initiative.Partnering with organizations,such as Ipieca,WEF and others,to help promote good indu

147、stry practice and better environmental performance.We are also working closely with our suppliers and creating incentives to reward them for improvements in their environmental performance.*Metric reported for the first time externally.Impact on our businessVery high High Moderate Impact on our stak

148、eholdersAramco Sustainability Report 202216MaterialityRelevant metric to monitor performance against each material topicLabor practices Number of people on Aramco sponsored programs*1National content Saudization(%)Saudization of construction contracts(%)Saudization of service contracts(%)iktva procu

149、rement spend in-Kingdom(%)Human rights(supply chain)%of active suppliers signed up to Aramcos Supplier Code of Conduct*Number of active suppliers*Community and society Social investment*($million)Number of volunteers*Number of volunteer hours*Economic contribution Direct economic value generated and

150、 distributed($million)Total R&D spend($million)Examples of our contributions to UN SDGsAramco has various social investment programs,which look to improve the health and well-being of our host communities around the world.Aramco believes in lifelong learning and development and continues to prov

151、ide world-class learning experiences in our community.With a mission to equip the Saudi market with a highly motivated and qualified Saudi workforce,the Company has historically been building and maintaining schools for children and is also creating market/demand driven national training centers,whi

152、ch offer high standard vocational training programs to sponsored trainees.The Company also has a history of supporting the community via financing various education centers for people with development disabilities,such as Hiba Center for Down Syndrome and the Abdullatif AlFozan Autism Center(the fir

153、st community center of its kind in Saudi Arabias Eastern Province to support children on the autism spectrum).Supporting the economic development of our employees and communities in Saudi Arabia via our iktva spend,various home ownership and Aramco initiatives to seed micro industries(e.g.,Roseyar,b

154、eekeeping in al-Baha,fisheries in Yanbu and Baish,olive products in al-Jouf,coffee cultivation in Jazan).Industry:Creating a world-class local supply chain to serve the needs of the Company and its partners,facilitating the development of a diverse,sustainable,and globally competitive energy sector

155、in the Kingdom.Innovation:At the heart of our business lies a commitment to innovate and maximize production from our resources,to deliver energy as efficiently as possible from the wellhead to customers.Infrastructure:The Kingdoms Master Gas System delivers natural gas to industry across Saudi Arab

156、ia;while Aramco has also built various roads,educational facilities,cultural centers(e.g.,Ithra,which delivered over 8,000 programs and welcomed more than one million visitors during 2022)and numerous other facilities across the Kingdom.Partnering with governments,suppliers,non-profit organizations

157、and education institutions.During 2022,$370 million was invested in various social initiatives,supporting more than 30 non-profit organizations around the world.Focus areaGrowing societal valueMaterial topicsImpactLabor practicesNational contentHuman rights(supply chain)Community and societyEconomic

158、 contributionFor more details,see page 71*Metric reported for the first time externally.1.These programs include the Vocational College Internship Program(VCIP),University Internship Program(UIP),Summer enrichment program,Tomooh program,Advantage program,and ACCEL International Ajyal Center.Impact o

159、n our businessVery high High Moderate Impact on our stakeholders1717OVERVIEWCLIMATE CHANGE AND THE ENERGY TRANSITIONSAFE OPERATIONS AND PEOPLE DEVELOPMENTMINIMIZING ENVIRONMENTAL IMPACTGROWING SOCIETAL VALUEGOVERNANCEDATAAramco Sustainability Report 202218Climate change and the energy transitionAs o

160、ne of the worlds largest integrated energy and chemicals company,we have an important role to play to support energy security and promote sustainable practices in response to climate change.We are investing in technology needed for a stable energy transition that utilizes all sources of energy to me

161、et the worlds growing energy demand while reducing GHG emissions.Our focus is on leading in lower carbon intensity energy production and supporting the development of non-fuel applications for crude oil,targeting the highest impact solutions across our value chain.The challenge is to develop and dep

162、loy technology solutions at speed and scale,to provide the benefits of oil and gas for future generations,while minimizing emissions.It is a complex,multidimensional,and capital intensive challenge that will span generations.Material topicsRelevant UN SDGsClimate change(including GHG emissions)Scope

163、 1 emissions(million metric tonnes of CO2e)Scope 2 emissions(million metric tonnes of CO2e)Upstream carbon intensity(kg CO2e/boe)Upstream methane emissions(metric tonnes of CH4)Upstream methane intensity(%)Flaring intensity(scf/boe)Flared gas(MMscf)Energy intensity(thousand Btu/boe)Relevant metricsF

164、or more details on relevant metrics,see page 86.Learn more about Aramcos GHG emissions management program.Scan here1919OVERVIEWCLIMATE CHANGE AND THE ENERGY TRANSITIONSAFE OPERATIONS AND PEOPLE DEVELOPMENTMINIMIZING ENVIRONMENTAL IMPACTGROWING SOCIETAL VALUEGOVERNANCEDATANavigating the energy transi

165、tionToward a low carbon systemAramco supports the aims of the 2015 Paris Agreement to limit global temperature increase in this century to 2 degrees Celsius,while pursuing efforts to limit the increase even further to 1.5 degrees,and the commitment of the Kingdom of Saudi Arabia to achieve net zero

166、emissions in its economy by 2060.This requires a transition of the global energy system toward a low carbon system,requiring thousands of large-scale projects across multiple sectors.This presents unprecedented design,engineering,and implementation challenges.The McKinsey Global Institute has estima

167、ted that a net zero world will cost around$275 trillion by 20501.Policymakers,industrial suppliers and customers recognize that this transition will not be uniform across geographies.What might be achievable today in more developed economies will be distinct from what is appropriate and effective in

168、 emerging markets.Growing markets,particularly in developing countries,face additional challenges to their ability to achieve sustainable development while meeting their needs for affordable,reliable energy.Reduction in GHG emissions across Europe and North America will proceed at a different pace f

169、rom developing countries.What does unite all economies and societies is not only the desire to address the impacts of climate change,but also the need for affordable,reliable energy.Across any society,higher energy prices are a burden that disproportionately impacts lower income households.Balancing

170、 energy security,affordability and emissionsEvents of the last few years,particularly COVID-19 and the conflict in Ukraine,have highlighted the risks of under-investment in energy sources and underlined the importance of energy security and energy access.Alternatives to traditional hydrocarbon-based

171、 energy sources are progressing,but on their own will be insufficient to meet the worlds energy demands today and ensure an orderly energy transition.As COP27 in Sharm El Sheikh highlighted,many developing economies depend upon the low-cost and reliability of hydrocarbons to avoid energy shortages a

172、nd cost inflation and they need realistic solutions now to ensure economic security,even while the energy transition develops in parallel.Although global energy systems are becoming more efficient each year,requiring less energy to meet the same level of economic activity,the demands of a growing mi

173、ddle-class and facilitating access to economies and communities that lack access to energy is leading to a growing energy demand.The definition of“affordable,reliable energy”diverges depending on the society and its position in the development index.Accordingly,prudent solutions will require a varie

174、ty of energy sources and technologies.For example,around 800 million people do not have access to electricity and some 3 billion people still depend on indoor fires for cooking2 their requirements differ substantially from those living in a highly advanced economy.With the focus on energy security a

175、nd affordability,Aramcos continued investment and capital expenditure to increase supply,combined with our high level of reliability and low carbon intensity of production,will support a global orderly energy transition.Our 2050 net zero ambition and 2035 GHG emissions reduction targets keep us focu

176、sed on advancing in lower carbon intensity and abatement technologies and supporting the development of non-fuel applications for crude oil.We also continue to invest in the ability to meet the worlds need for energy sourced from hydrocarbons.This includes expanding the gas supply in Saudi Arabia,an

177、d exploring new markets,including for blue hydrogen and additional non-combustible uses for oil.A parallel materials transitionAt the same time,the global economy is facing the realities of having to invest in new supply chains for minerals,metals,and materials.Without adequate investment in oil and

178、 gas,there remains the risk of raising the cost of the critical inputs needed for any transition.Hydrocarbons will increasingly be used without combustion or where carbon emissions can be captured and removed.Fuels,such as blue hydrogen,using CCS technologies,are projected to increase in demand.Petr

179、ochemicals will provide feedstock essential to the development of new materials that will play a significant role in the energy transition advanced,durable materials are essential for manufacturing wind turbines,solar panels,all modes of transportation,McKinsey Global Institute has estimated that a

180、net zero world will cost around$275trillion by 205011.McKinsey Report:“The Net Zero Transition”,January 2022.2.Overseas Development Institute Oil and gas,poverty and energy access.Aramco Sustainability Report 202220The energy landscapeEnergy securityEnvironmental sustainabilityAffordabilitystorage d

181、evices,and infrastructure.The faster we accelerate the transition,the more of these materials we will need.Today,chemical products made from oil and gas enable over 90%of all manufactured goods.Energy transition scenariosScenario planning has been integral to Aramcos decision-making process for arou

182、nd a decade.The first scenarios were developed in 2014,depicting four pathways to the future energy landscape our business operates in.We have updated the scenarios five times since the start of this journey,each time successively incorporating the increasingly complex nature of our business amid a

183、fast-paced transition.During this decade,the energy world has endured a major downturn in oil price cycles,a pandemic,and several geopolitical events.Scenarios and outlooks have been critically important to strategic dialogues within our Company.The Company employs in-house expert economists and ana

184、lysts to develop these scenarios.A wide range of internal and external stakeholders are engaged to determine the drivers of future energy landscapes,our strategies,and investment decisions.These and other important determinants,such as policy developments and climate goals,and technological progress

185、 form the basis of our scenario pathways.Once the scenario pathways are defined,they are modeled using a proprietary energy analytics system.Scenario outputs include global economic indicators,energy market fundamentals,and GHG emission projections.In our latest set of scenarios,we have used the ene

186、rgy trilemma framework,first developed by the World Energy Council,to determine alternate pathways for the future.The framework utilizes affordability,energy security and environmental sustainability as three policy objectives that require balance and trade-offs.Each of our scenarios accentuates one

187、 dimension of the energy trilemma triangle,while a fourth scenario depicts a balanced approach to these trade-offs.Aramcos integrated energy and economic modeling systemAramco developed its proprietary energy solutions platform in collaboration with a number of industry-leading energy data providers

188、 and modelers.The platform is a computer-based integrated solution comprised of global economic and energy models.These models represent energy supply(oil,gas,and coal),demand(transportation,residential,commercial,and industrial),conversion(refining,power,and petrochemicals),and macroeconomics.The s

189、ystem operates in an integrated manner with eight different sub-modules including economics,energy demand,climate,oil supply,gas supply,coal supply,refining,and petrochemicals.The system is capable of modeling at a country-level on 26 sub-sectors,25 fuel types,energy carriers including electricity a

190、nd hydrogen,and GHG emissions.Macro-economyClimate modelNatural gasPetro-chemicalsOil supplyPricesRefiningEnergy demand2121OVERVIEWCLIMATE CHANGE AND THE ENERGY TRANSITIONSAFE OPERATIONS AND PEOPLE DEVELOPMENTMINIMIZING ENVIRONMENTAL IMPACTGROWING SOCIETAL VALUEGOVERNANCEDATALeading in low carbon in

191、tensity operationsGHG emissions managementFlaring and methane reductionEnergy managementIn-Company renewablesSupporting the transition to low-impact energy pathwaysLower carbon fuels and transport technologiesHydrogenDeveloping and growing low-impact value chainsNon-metallicsLiquids-to-chemicalsRene

192、wable energy investmentDifferentiateSustainDiversifyCollaboration with partners to develop and deploy technologies and infrastructure at speed and scaleCarbon capture and storageLeveraging technologyDeveloping offsets and supporting carbon markets EnableOur climate change and energy transition frame

193、workOur corporate strategy is based on producing hydrocarbons that have one of the lowest upstream production costs and carbon intensities in the world,and supporting a global orderly energy transition towards a lower carbon emissions future through investing in technologies and offering lower carbo

194、n products,including e-fuels.Our climate change and energy transition framework is informed by the circular carbon economy principles of reduce,reuse,recycle and remove.We have four areas of focus that provide the framework for our climate change initiatives and investments:Read about how Aramco see

195、ks to adopt the principles of the circular carbon economy.Scan hereAramco Sustainability Report 202222Climate change and the energy transitionGHG emissions managementWe recognize the need to reduce our GHG and methane emissions and have ambitions and targets to reduce carbon emissions associated wit

196、h our operations.Our emissions reduction strategy includes investing in low-emission technologies,including CCS,energy efficiency programs and energy mix diversification.We are committed to developing and deploying innovative solutions,optimizing operations,and adopting efficient project designs.Ara

197、mcos industry leading low carbon intensity production performance is the result of almost half a century of careful reservoir management and investment in efficiency,reducing flaring and produced water management.This has yielded an environmental advantage that forms a key pillar of our corporate st

198、rategy.We are confident that we can help the world meet its rising energy needs,while reducing emissions from our operations.Net zero ambitionAramcos ambition is to reduce GHG emissions from our operations and achieve a net zero GHG emissions footprint by 2050 across our wholly-owned operated assets

199、.Having undertaken analysis to support this corporate ambition,we know that achieving net zero operational emissions while we grow our business to meet global energy demand will be a huge challenge.It requires internal targets to be set for our businesses and assets,and for these targets to be embed

200、ded into our business planning,to ensure capital expenditure and resource requirements are in place.Leading in low carbonintensity operationsWhat are we doing?Climate change risk and mitigationClimate change is considered a top corporate priority for us and we assess this on a medium to long-term ho

201、rizon.Our response to climate change is embedded in our business strategy,supported by our climate change and energy transition framework and our five GHG reduction initiatives.RiskMitigationPolicy:Policies restricting or banning use of fossil fuels,or applying a cost on carbon Climate-related deman

202、d scenarios to inform business decision makingTechnology:Adoption of disruptive technologies and/or slow development of GHG reduction technologies Accelerated development of our technology portfolios,including synthetic fuels,CCUS and CCS technologies,e.g.,Jubail CCS HubMarket:Loss of demand for hyd

203、rocarbons as customers move to achieve their GHG targets Diversification into low GHG emitting products,e.g.,chemicals and hydrogenLegal:Potential exposure to climate-related litigation Accurate and transparent reporting and disclosures with independent assuranceReputation:Impact on corporate reputa

204、tion Stakeholder engagement,including independent external consultants and subject matter experts to advise on reporting and disclosures,and explain the Companys energy transition pathwayEmissions management starts at the subsurfaceOur philosophy of sustainable reservoir management is key in reducin

205、g our upstream carbon intensity.Instead of maximizing production from wells which could irreversibly damage them,we prioritize the long-term health of our reservoirs.This entails producing our fields at low depletion rates to prevent premature water breakthrough,reducing the quantity of produced wat

206、er.Using advanced reservoir modeling and real-time data,our geoscientists and engineers steer multilateral wells with maximum reservoir contact to ensure optimum well placement which help minimize water production.Additionally,these wells are equipped with smart completions which enable shutting off

207、 when detecting water.Such practices result in superior produced water management and low water oil ratios(WOR).When the production of water is minimized,less energy is required for fluid separation,treatment and disposal.These energy savings result in lower carbon emissions.As a consequence,Aramcos

208、 average WOR is significantly lower than the global average,and hence our upstream carbon intensity is amongst the lowest globally.What are we doing?2323DifferentiateSustainDiversifyEnableOVERVIEWCLIMATE CHANGE AND THE ENERGY TRANSITIONSAFE OPERATIONS AND PEOPLE DEVELOPMENTMINIMIZING ENVIRONMENTAL I

209、MPACTGROWING SOCIETAL VALUEGOVERNANCEDATAGHG emissions targetsIn parallel with our intensity targets,we are aiming to reduce our net annual Scope 1 and Scope 2 GHG emissions from both the upstream and downstream businesses by 52 MMtCO2e from our business as usual 2035 forecast emissions.By 2035,cons

210、istent with the corporate growth strategy in oil and gas production and development of new businesses,particularly hydrogen and liquids-to-chemicals,we forecast our business as usual Scope 1 and Scope 2 GHG emissions for our wholly-owned operated assets will increase to 119 MMtCO2e.Our goal is to mi

211、tigate this growth in emissions and reduce our emissions to 67 MMtCO2e by 2035.Targeted GHG reductionOur Yanbu Refinery facility successfully obtained the International Sustainability and Carbon Certification under its circular cracker oil initiative.The initiative drives the certification relates t

212、o an in-house sustainable circular route to produce circular cracker oil from waste oil to reduce our Scope 2 GHG carbon footprint.What are we doing?During 2022,we have made progress toward achieving our 2035 and 2050 ambitions across our five identified levers:energy efficiency,reduced methane and

213、flaring;increased renewables;CCS;and offsets to address emissions we cannot reduce or capture.For more information on our 2022 efforts and impact,please refer to pages 26 and 27.We have also been conducting site-level bottom-up assessments of what it would take to decarbonize our assets.Once this is

214、 completed in 2023,we will update our decarbonization strategy in the next report.GHG emissionsThe Companys GHG emissions management program monitors direct(Scope 1)and indirect(Scope 2)emissions from wholly-owned operated assets,in a manner consistent with the GHG Protocol.Despite increased hydroca

215、rbon production by 10%in 2022,total emissions(Scope 1 emissions and Scope 2 emissions)from the Company and its operationally controlled entities increased by only 6%(71.8 MMtCO2e in 2022 versus 67.8 MMtCO2e in 2021)compared to the previous year.This was enabled by more efficient operations and a red

216、uction in flaring intensity by 17%compared to the previous year due to improved operations of the Companys in-house flare gas recovery systems across several facilities.For more information on our flaring,please refer to page 28.Digital twinsOur EXPEC Computer Center developed a solution to reduce e

217、nergy intensity and emissions associated with operating subsurface artificial lift systems,leveraging digital twin technology by optimizing the performance of our electric submersible pumps(ESP).The system was trial tested across 42 ESP lifted wells resulting in a 22%average reduction in power consu

218、mption,equivalent to 12 GWh of energy savings during 2022.It is projected that deploying this solution across all fields will result in a 25%average reduction in artificial lift energy intensity at Company level.What are we doing?Scope 1 and Scope 2emissions upstreamintensity:15%reduction by 2035(kg

219、 CO2e/boe)-15%10.218.720182035-15%Scope 1 and Scope 2 emissions GHG reduction targeted by 2035(MMtCO2e)20357222022-52Forecast business-as-usual growthTargeted GHG reductionOur Southern Area Oil Operations won a 2022 Society of Petroleum Engineers Regional Distinguished Corporate Support A

220、ward for reducing its emissions by 600,000tCO2e1.2018 was the first year our GHG inventory was independently assured.2.This figure has undergone external limited assurance in accordance to the ISAE 3000(revised).The assurance report can be found online here.Aramco Sustainability Report 202224Differe

221、ntiateSustainDiversifyEnable1.This figure has undergone external limited assurance in accordance to the ISAE 3000(revised).The assurance report can be found online here.2.The Jazan Refinery(our downstream refinery)is excluded from our current GHG reporting because in 2022,it remains in the startup a

222、nd stabilization phase and is not fully operational.Aramco is working to stabilize the refinerys operations and complete all necessary reporting configurations before the end of 2023.Reporting on the refinerys environmental and sustainability elements will commence immediately thereafter,in line wit

223、h the Companys commitment to operational transparency.3.Fadhili Gas Plant is excluded from 2020 GHG emissions inventory.4.These emission reductions were calculated from real vessel performance data at different speeds and application of the International Maritime Organization guidelines.Prior to imp

224、lementation,terminals benchmarked the initiative with other worldwide ports,such as Los Angeles and San Diego in the United States,and other countries including Canada and Singapore.Scope 1 emissions(MMtCO2e)55.755.71,220202021202252.31,250.21,2,3Scope 2 emissions(MMtCO2e)16.116.11,220202021202215.5

225、1,218.11,2,3Upstream carbon intensity(kg CO2e/boe)10.310.32210.7110.63Upstream carbon intensityThe Companys 2022 upstream carbon intensity figure remains among the lowest in the industry at 10.31 kg CO2e/boe(2021:10.71 kg CO2e/boe).This improvement is predominantly driven by energy effici

226、ency,and reduced flaring across Upstream operations due to improved reliability and performance of our flare gas recovery systems(FGRS).In 2022,two new FGRS became operational in both Abu Ali and Qatif central processing facility resulting in estimated annual flared gas recovery of over 1.0 bscf per

227、 year.Aramco is leveraging its R&D and technology initiatives to develop,and implement innovative approaches that could help lower emissions across our industry and have potential application in other industries.For more details on what we have done during 2022 regarding our progress on our five

228、 levers to meet our 2035 interim GHG targets,please refer to pages 26-27.Scope 3 value chain emissions Our focus is on measurement,reporting,and management of those emissions within our direct control.To date,we have not reported Scope 3 emissions from our supply chain or from customers use of our p

229、roducts.We are working on supporting the global energy transition towards a lower carbon emissions future through investing in technologies and working with suppliers to integrate ESG performance measures through our iktva program.Vessel Speed Program To support the national and corporate GHG reduct

230、ion aspirations,our terminals instituted the Vessel Speed Program reducing the speed of vessels sailing through the Ras Tanura and Juaymah Port to 12 knots from 15 knots.12 knots was determined as the optimal speed based on vessel engine efficiency,while minimizing impact on customers satisfaction o

231、r our reliability.It is estimated that the program has reduced the GHG emissions of visiting ships by more than 90,000 tCO2e per year4.What are we doing?Our investment in hydrogen,chemicals and renewable energy sources and the increasing share of gas in our production provide products that will supp

232、ort the global energy transition towards a lower carbon emissions future.We continue to invest in a number of product stewardship partnerships and technologies to reduce emissions,this includes research and development into low emissions transport solutions.During 2022,we increased our R&D spend

233、 on developing potential solutions that will assist the global energy transition towards a lower carbon emissions future notably over a 45%increase in sustainable mobility R&D spend and over 380%increase in crude to chemicals R&D spend,reflecting the increasing importance of these areas to o

234、ur future business.For more details on our R&D spend,please refer to pages 40-41.2525OVERVIEWCLIMATE CHANGE AND THE ENERGY TRANSITIONSAFE OPERATIONS AND PEOPLE DEVELOPMENTMINIMIZING ENVIRONMENTAL IMPACTGROWING SOCIETAL VALUEGOVERNANCEDATAGHG reductions targeted by 2035521MMtCO2e1MMtCO2e11MMtCO2e

235、GHG reduction initiatives to 2035Levers to achieve interim targetsTo achieve reductions in GHG emissions by 2035,we are focusing on five key levers:energy efficiency across our upstream and downstream assets;further reductions in methane and flaring;increased use of renewable energy sources;CCS;and

236、development or purchase of offsets to help address hard-to-abate emissions.Energy efficiencyOur plans Continue to sustain/improve energy intensity Optimize co-generation and steam systems Ensure energy efficiency in new project design Expand utilization and application of the energy efficiency digit

237、al solutions Initiatives include gas turbine upgrades,boiler and fired heater efficiency improvementsOur actions in 2022 Achieving a 3%improvement in energy intensity performance compared to last year Implementation of new energy efficiency technologies in our industrial and non-industrial facilitie

238、s Using modern low NOx burner technologies to boost fuel efficiency Enhancing hydrogen blending capabilities for current boilers Upgrading and optimizing operation of boilers,steam traps,and fired heaters 36 organizations received the ISO 50001 certification for their energy management system Introd

239、ucing new strategies for implementing energy conservation initiatives for more than 700 buildings Flaring and methaneOur plans Commitment to OGCI near zero upstream methane intensity by 2030 and the World Banks“Zero Routine Flaring by 2030”initiative Further enhance LDAR(Leak Detection and Repair)Pr

240、ogram Unmanned aerial vehicles and satellite methane detectionOur actions in 2022 Achieved our lowest ever flaring intensity Upstream methane intensity of 0.05%Implementing a Flaring Minimization Roadmap,with site-specific priorities across Aramco operations Investing in and developing innovative fl

241、aring reduction technologies Introducing a smart flaring monitoring system Installing high efficiency burners As part of the LDAR program,surveyed thousands of points across our operations in the Kingdom to minimize methane leaks Installed two new Flare Gas Recovery Systems at Abu Ali and Qatif Cent

242、ral Processing Facility1.This figure may not match up due to rounding.Aramco Sustainability Report 202226DifferentiateSustainDiversifyEnable14MMtCO2e11MMtCO2e16MMtCO2eRenewablesOur plans Commitment to invest in 12 GW of solar and wind energy by 2030 for our business and also in support of the Kingdo

243、ms National Renewable ProgramOur actions in 2022 Sudair Solar PV Plant has reached 56%completion power generation expected to start in Q4,2024 Approved installation of renewable systems to power 20 offshore water injection wells at Berri and Zuluf Installing PV systems to power Aramcos remote pipeli

244、nes loadCCSOur plans Jubail CCS hub to capture up to 11 MMtpa by 2035 contributing towards the Kingdom reaching its goal of 44 MMtpa of CCUS by 2035 Jubail Hub targeted to store 9 MMtpa,with Phase 1 capturing around 6 MMtpa by 2027 from gas plants at Wasit,Fadhili and Khursaniyah,plus circa 3 MMtpa

245、from other industry sources Phase 2 will capture around 5 MMtpa and may include CO2 from other facilitiesOur actions in 2022 Joint Agreement signed with SLB and Linde to build the Jubail CCS hub Identified 9 MMtpa of storage capacity with CO2 injection expected by 2027 Captured around 238 MtCO2 from

246、 our pilot Hawiyah Natural Gas Plant resulting in a cumulative total of about 1,570 MtCO2 stored in the reservoir,since the CO2 injection started in 2015OffsetsOur plans Develop carbon offsets from natural climate solutions Ambition to plant 300 million mangroves in Saudi Arabia and 350 million mang

247、roves outside the Kingdom by 2035 expected to remove and offset an estimated 16 MMtCO2e by 2035 Assist in developing a credible and functioning carbon credit market in the Kingdom for carbon offsets and credits produced in the MENA regionOur actions in 2022 Participated,and purchased credits,in the

248、first carbon credit auction held in 2022 through the Regional Voluntary Carbon Market in Saudi Arabia2727OVERVIEWCLIMATE CHANGE AND THE ENERGY TRANSITIONSAFE OPERATIONS AND PEOPLE DEVELOPMENTMINIMIZING ENVIRONMENTAL IMPACTGROWING SOCIETAL VALUEGOVERNANCEDATAUpstream methane intensity(%)0.050.0520202

249、02120220.050.063Flaring intensity(scf/boe)4.604.601,22020202120225.5125.972,3Flaring and methaneFlaring of waste gases has long been recognized as one of the most significant contributors to GHG emissions in the oil and gas sector.Aramco has been a pioneer in gas flaring reduction and now has indust

250、ry-leading methane intensity and gas flaring metrics.Minimizing flaring Aramco is a signatory to the World Banks“Zero Routine Flaring by 2030”initiative and is committed to sharing best practices with industry partners to accelerate global flaring reduction.During 2022,our flaring intensity fell by

251、17%,(4.601 scf/boe in 2022 versus 5.51 scf/boe in 2021)due to significant investments,installations and improved operations of our in-house flare gas recovery systems across several facilities and a reduction in routine and non-routine flaring.From April 2022,two new FGRS became fully operational in

252、 both Abu Ali and Qatif central processing facility,which will result in an expected annual reduction of 1.5 bscf per year.Substantial investments and developments in innovative flaring reduction technologies continued throughout 2022.These included implementing the Flaring Minimization Roadmap,whic

253、h has identified priorities across Aramco operations,with every operating facility having a flare minimization plan and targets.Aramcos operations are monitored in real-time at our Fourth Industrial Revolution(4IR)Center in Dhahran.This has enabled us to achieve near zero routine flaring already.We

254、have maintained a flare volume of 1%of total raw gas production since 2012.MethaneAddressing methane emissions is one of the fastest,most effective ways to slow the rate of global temperature rise.An enhanced Leak Detection and Repair program for the Companys methane emissions in the Kingdom priorit

255、izes actions at operating facilities.Hundreds of thousands of points are surveyed across our operations to minimize potential methane leaks.We use drones to monitor and measure methane emissions from our operating facilities.In addition to LDAR,we are assessing and deploying remote detection solutio

256、ns and technologies such as the use of satellite monitoring.Aramcos upstream methane intensity measures the ratio of our upstream methane emissions for operated assets against the quantity of marketed natural gas.Our upstream methane intensity remained low in 2022 at 0.05%(0.05%in 2021)and is alread

257、y well below the OGCI ambition to achieve at least 0.20%by 2025.Two technologiesIn 2022,two technologies were piloted to enhance the management of flaring emissions:A flaring monitoring system detects flaring performance and optimizes burner feed inputs via cameras equipped with artificial intellige

258、nce programs.We piloted portable ignition systems for on-demand flaring needs,replacing continuous flaring and emissions.What are we doing?We have maintained a flare volume of 1 bbl15Operational control13Operational control6Operational controlLocal environmental impactVolume of hydrocarbon spills To

259、tal volume of liquid petroleum hydrocarbon accidentally released into the environment,where the spill incident is 1 bbl142,8851Operational control14,447Operational control134Operational controlLocal environmental impactRecovered hydrocarbon Percentage of liquid petroleum hydrocarbon removed from the

260、 environment through recovery methods*(%)91Operational control94Operational controlMetric not disclosed previouslyLocal environmental impactHydrocarbon discharge to water2 The total of hydrocarbons that are systematically released to surface water through regulated industrial wastewater discharges(b

261、arrels)16.41Operational control 30.7Operational control 20.2Operational control Local environmental impactSO2 emissions3,4 Quantity of sulfur dioxide(SO2)(kilotonnes)1671Operational control 141Operational control 163Operational control Local environmental impactNumber of sites with ISO 14001 certifi

262、cation*(%)981Operational controlMetric not disclosed previously*Metric reported for the first time externally.1.This figure has undergone external limited assurance in accordance to the ISAE 3000(revised).The assurance report can be found online here.2.As we progress on our reporting journey and our

263、 controls around ESG data mature,for this metric,we have expanded the reporting boundary from Company in-Kingdom to operational control.To allow comparability,we have restated the 2021 and 2020 figures in line with the expanded reporting boundary.3.The Jazan Refinery(our downstream refinery)is exclu

264、ded from our SO2 emissions reporting.In 2022,it remains in the startup and stabilization phase and is not fully operational.Aramco is working to stabilize the refinerys operations and complete all necessary reporting configurations before the end of 2023.Reporting on the refinerys environmental and

265、sustainability elements will commence immediately thereafter,in line with the companys commitment to operational transparency.4.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 b

266、ecause ATC,ASC,AOC and SAAC are office-based entities and therefore,have no SO2 emissions.Aramco Sustainability Report 202290Our metricsMaterial topicMetric definition (unit of measure)2022 actual2022 boundaries2021 actual2021 boundaries2020 actual2020 boundariesMinimizing environmental impactBiodiv

267、ersityNet positive impact*(total biodiversity areas(km2)/Footprint area(km2)x 100)(%)531Operational controlMetric not disclosed previouslyWater managementFreshwater consumption2 (million m3)The difference between the volume of freshwater removed from the environment,incl.surface water,groundwater,fo

268、r use in operations,and freshwater returned to the source.The total dissolved solids concentration of this type of water is up to 2,000 mg/l93.61Operational control excluding ATC,ASC,AOC and SAAC 94.6Operational control excluding ATC,ASC,AOC and SAAC 90.2Operational control excluding ATC,ASC,AOC and

269、 SAAC Water managementFreshwater withdrawal2 (million m3)136.6Operational control excluding ATC,ASC,AOC and SAAC 137.3Operational control excluding ATC,ASC,AOC and SAAC 142.9Operational control excluding ATC,ASC,AOC and SAAC Product stewardship and waste managementIndustrial waste generated2The tota

270、l amount of industrial waste,hazardous and non-hazardous,generated from operating facilities,not including waste recycling,re-using,and recovery(metric tonnes)318,656Operational control 240,225Operational control 313,348Operational control Product stewardship and waste managementIndustrial waste rec

271、ycled*(%)39.91Operational control 39.8Operational control 49.5Operational control*Metric reported for the first time externally.1.This figure has undergone external limited assurance in accordance to the ISAE 3000(revised).The assurance report can be found online here.2.As we progress on our reporti

272、ng journey and our controls around ESG data mature,for this metric,we have expanded the reporting boundary beyond just Company In-Kingdom.To allow comparability,we have restated the 2021 and 2020 figures in line with the expanded reporting boundary.9191OVERVIEWSAFE OPERATIONS AND PEOPLE DEVELOPMENTC

273、LIMATE CHANGE AND THE ENERGY TRANSITIONMINIMIZING ENVIRONMENTAL IMPACTGROWING SOCIETAL VALUEGOVERNANCEDATAMaterial topicMetric definition (unit of measure)2022 actual2022 boundaries2021 actual2021 boundaries2020 actual2020 boundariesGrowing societal valueLabor practicesNumber of people on Aramco spo

274、nsored programs*112,160Company in-Kingdom9,010Company in-Kingdom737Company in-KingdomNational contentSaudization(%)90.9Company in-Kingdom90.5Company in-Kingdom89.6Company in-KingdomNational contentSaudization of construction contracts(%)Percentage of construction saudi contractors relative to the to

275、tal construction contractors workforce in Saudi Arabia28.0Company in-Kingdom25.6Company in-Kingdom21.6Company in-KingdomNational contentSaudization of service contracts(%)Percentage of Saudi service contractors relative to the total service contractors workforce in Saudi Arabia57.2Company in-Kingdom

276、56.6Company in-Kingdom51.0Company in-KingdomNational contentiktva procurement spend within the Kingdom(%)63.0Company in-Kingdom59.0Company in-Kingdom57.5Company in-KingdomHuman rights%of active suppliers signed up to Aramcos Supplier Code of Conduct*100%Company in-Kingdom100%Company in-Kingdom100%Co

277、mpany in-KingdomHuman rightsNumber of active suppliers*3,199Company in-KingdomMetric not disclosed previouslyCommunity and societySocial investment*2 ($million)370Operational controlMetric not disclosed previouslyCommunity and societyNumber of volunteers*4,9413Operational control4,153Company in-King

278、dom1,503Company in-KingdomCommunity and societyNumber of volunteer hours*168,5903Operational control136,284Company in-Kingdom52,408Company in-KingdomEconomic contribution Direct economic value generated and distributed2:GroupGroupGroup Revenue ($million)535,188359,181204,829 Other income related to

279、sales($million)69,17841,28725,062*Metric reported for the first time externally.1.These programs include the Vocational College Internship Program(VCIP),University Internship Program(UIP),Summer enrichment program,Tomooh program,Advantage program,and ACCEL International Ajyal Center.2.This metric is

280、 converted at a fixed rate of U.S.dollar 1.00=SAR 3.75 for convenience only.3.As we progress on our reporting journey and our controls around ESG data mature,for this metric from 2022 onwards,we have expanded the reporting boundary from Company in-Kingdom to operational control.The 2021 and 2020 fig

281、ures are at a Company in-Kingdom level only.In 2022,at a Company in-Kingdom level,the number of volunteers were 4,397 and the number of volunteer hours were 166,734.Aramco Sustainability Report 202292Our metricsMaterial topicMetric definition (unit of measure)2022 actual2022 boundaries2021 actual202

282、1 boundaries2020 actual2020 boundariesGrowing societal valueEconomic contribution Operating costs($million)299,279194,624127,662 Employee wages and benefits ($million)14,66514,06613,670 Dividends paid($million)78,86376,91169,841 Payments to government ($million)225,866148,542110,076Economic contribu

283、tionTotal R&D spend1($million)1,178Group1,033Group755GroupGovernanceCorporate governanceBoard composition by average age63Group62Group61GroupCorporate governanceBoard composition by average tenure6Group5Group5.6GroupCorporate governanceBoard members average attendance*(%)100Group97Group98GroupCo

284、rporate governanceNumber of independentBoard members*5Group5Group5GroupCorporate governanceBoard diversity*(number of females on the Board)1Group1Group1GroupEthics,anti-bribery and anti-corruption(compliance)Number of allegations received through the 24-hour hotline655Company in-Kingdom539Company in

285、-Kingdom619Company in-KingdomEthics,anti-bribery and anti-corruption(compliance)Anti-bribery and anti-corruption training hours22,575Company in-Kingdom7,300Company in-KingdomMetric not disclosed previously*Metric reported for the first time externally in our Sustainability Report.1.This metric is co

286、nverted at a fixed rate of U.S.dollar 1.00=SAR 3.75 for convenience only.9393OVERVIEWSAFE OPERATIONS AND PEOPLE DEVELOPMENTCLIMATE CHANGE AND THE ENERGY TRANSITIONMINIMIZING ENVIRONMENTAL IMPACTGROWING SOCIETAL VALUEGOVERNANCEDATACurrenciesCurrency conversion All financial amounts in SAR and USD in

287、this Report are reported in line with the exchange rates reported in Saudi Aramcos 2022 Annual Report.SAR/Saudi RiyalSaudi Arabian riyal,the lawful currency of the Kingdom$/USD/US$/DollarUS dollar Units of measurement Barrel(bbl)Barrels of crude oil,condensate or refined productsboeBarrels of oil eq

288、uivalentbscfBillion standard cubic feetbscfdBillion standard cubic feet per dayBtuBritish thermal unitGWGigawattsMboedThousand barrels of oil-equivalent per dayMMboedMillion barrels of oil-equivalent per dayMMscfMillion standard cubic feetMMtpaMillion metric tonnes per annumper dayVolumes are conver

289、ted into a daily basis using a calendar year(Gregorian)scfStandard cubic feettscfTrillion standard cubic feetTerms and glossaryAffiliateWith respect to financial information,the term Affiliate is defined by IFRS,meaning the Companys subsidiaries,joint arrangements and associates.Aramco NamaatAramcos

290、 industrial investment program.ARLANXEOARLANXEO Holding B.V.,a wholly-owned specialty chemicals subsidiary.ATCAramco Trading Company,a wholly-owned subsidiary of Aramco.Carbon creditA carbon credit is a tradable instrument that represents either;a permit to emit one tonne of CO2 or equivalent GHG(tC

291、O2e)into the atmosphere or;a certificate that represents the avoidance or removal of one tonne of CO2 or equivalent GHG(tCO2e)from the atmosphere.Carbon dioxide(CO2)A naturally occurring gas,and also a byproduct of burning fossil fuels and biomass,as well as land-use changes and other industrial pro

292、cesses.It is the principal human-caused greenhouse gas that affects the Earths radiative balance.It is the reference gas against which other greenhouse gases are measured and therefore has a Global Warming Potential of 1.Carbon capture,and storage(CCS)A set of technologies that can reduce CO2 emissi

293、ons from new and existing coal-and gas-fired power plants,industrial processes,and other stationary sources of CO2.It is a three-step process that includes capture of CO2 from power plants or industrial sources;transport of the captured and compressed CO2(usually in pipelines);and underground inject

294、ion and geologic sequestration,or permanent storage,of that CO2 in rock formations that contain tiny openings or pores that trap and hold the CO2.Sequestration and Storage are often used interchangeably.Utilization is where CO2 is reused in other applications,e.g.,food preparation,carbonated drinks

295、manufacturing,etc.Carbon dioxide equivalent(CO2e)A metric measure used to compare the emissions from various greenhouse gases based upon their global warming potential(GWP).Carbon dioxide equivalents are commonly expressed as“million metric tonnes of carbon dioxide equivalents(MMtCO2Eq).”The carbon

296、dioxide equivalent for a gas is derived by multiplying the tonnes of the gas by the associated GWP.MMtCO2Eq=(million metric tonnes of a gas)*(GWP of the gas).Aramco Sustainability Report 202294Abbreviations,terms and glossaryCarbon intensityA measure of greenhouse gas emissions in carbon dioxide(CO2

297、)equivalent per barrel of oil equivalent.Carbon markets Two types of carbon market exist:(1)Regulatory compliance markets used by companies and governments that by law have to account for their GHG emissions.It is regulated by mandatory national,regional or international carbon reduction regimes.(2)

298、Voluntary markets the trade of carbon credits is on a voluntarily basis.Carbon offsetReduction credits generated in one location that are transferred to another location or entity,and are usually denominated in metric tonnes of a reduced emission or megawatt hours of renewable energy produced.CHPCom

299、bined Heat and Power.Circular carbon economyA circular carbon economy is a framework for managing and reducing emissions.It is a closed loop system involving 4Rs:reduce,reuse,recycle,and remove.Circular economyA circular economy is an economic model of closed loops designed to retain the maximum val

300、ue of resources,assets and products by design,improve environmental performance and systems thinking is at the core.ClimateUsually defined as the“average weather,”or more rigorously,in terms of the mean and variability of relevant quantities over a period of time ranging from months to thousands of

301、years.Climate changeAny significant change in the measures of climate lasting for an extended period of time.Climate change includes major changes in temperature,precipitation,or wind patterns,among others,that occur over several decades or longer.Company/Aramco/Saudi AramcoAs used herein,and unless

302、 the context or additional text suggests otherwise,the terms“Aramco,”“Saudi Aramco,”“Company,”“we,”“us,”or“ours”refer to Saudi Arabian Oil Co.and its consolidated subsidiaries.ConcessionAs defined and discussed on page 126 of the Saudi Aramco Annual Report 2022.CO2Carbon dioxide.CO2eCarbon dioxide e

303、quivalent.CondensateLight hydrocarbon substances produced with raw gas,which condenses into liquid at normal temperatures and pressures associated with surface production equipment.DecarbonizationThe process of reducing CO2(GHG)emissions from the companys operations.Direct Air Capture(DAC)Technologi

304、es and processes that extract CO2 directly from the atmosphere.The CO2 can be permanently stored in geological formations or used as a feedstock in the production of fuels,chemicals,building materials,and other products containing CO2.DomesticRefers to the Kingdom of Saudi Arabia.EmissionsThe releas

305、e of a substance(usually a gas when referring to the subject of climate change)into the atmosphere.Emissions reductionCarbon reduction projects result in a net reduction in absolute CO2/GHG emissions relative to current emission levels or relative to an historical baseline.Energy efficiencyUsing les

306、s energy to provide the same service.Energy efficiency is one of the core strategies for reducing greenhouse gas emissions from fossil fuels.Energy intensity An index for measuring the total energy consumed to generate a unit of product,represented in thousand Btus per total production in barrel of

307、oil equivalent.Energy transitionA significant structural change in an energy system.EnvironmentThe natural world,as a whole or in a particular geographical area,especially as affected by human activity.ESGEnvironmental,social and governance.Flaring intensityVolume of gas flared per barrel of oil equ

308、ivalent produced(scf/boe).FreshwaterNon-brackish water with total dissolved solids concentration up to 2,000 mg/l.9595OVERVIEWSAFE OPERATIONS AND PEOPLE DEVELOPMENTCLIMATE CHANGE AND THE ENERGY TRANSITIONMINIMIZING ENVIRONMENTAL IMPACTGROWING SOCIETAL VALUEGOVERNANCEDATAG20Group of Twenty is an inte

309、rgovernmental forum comprising 19 countries and the European Union(EU).GDPGross domestic product.The broadest quantitative measure of a nations total economic activity,representing the monetary value of all goods and services produced within a nations geographic borders over a specified period of ti

310、me.Greenhouse gas(GHG)Any gas that absorbs infrared radiation in the atmosphere rather than allowing it to radiate into space.Greenhouse gases include CO2,methane,nitrous oxide,ozone,chlorofluorocarbons,hydrochlorofluorocarbons,hydrofluorocarbons,perfluorocarbons,and sulfur hexafluoride.GHG avoidanc

311、eThe avoidance of GHG emissions that would otherwise occur without the protective actions implemented by an offset project.GHG reductionQuantified absolute decrease in GHG emissions specifically related to/arising from an activity.GHG removalWithdrawal of a GHG and/or a precursor from the atmosphere

312、 by a GHG sink or GHG removal technology.GovernmentThe Government of the Kingdom of Saudi Arabia(and“Governmental”shall be interpreted accordingly).Greenhouse gas(GHG)emissions Any gaseous compound in the atmosphere that is capable of absorbing infrared radiation.Generally,consists of water vapor,CO

313、2,methane,nitrous oxide,hydrofluorocarbons,perfluorocarbons and sulfur hexafluoride.Aramcos inventory includes CO2,methane and nitrous oxide.Greenhouse Gas Protocol GHG Protocol establishes comprehensive global standardized frameworks to measure and manage greenhouse gas emissions from private and p

314、ublic sector operations,value chains and mitigation actions.It was a product of the collaboration between the World Resources Institute(WRI)and World Business Council for Sustainable Development(WBCSD).GroupSaudi Arabian Oil Company,together with its consolidated subsidiaries,and where the context r

315、equires,its joint operations,joint ventures and associates.HSSEHealth,Safety,Security and Environment.HydrocarbonsSubstances containing only hydrogen and carbon.Fossil fuels are made up of hydrocarbons.Hydrocarbons lawLaw governing hydrocarbons,hydrocarbon resources,and hydrocarbon operations existi

316、ng within the territory of the Kingdom,enacted by Royal Decree No.M/37,dated 2/4/1439H(corresponding to December 20,2017),as amended.IFRSInternational Financial Reporting Standard(s)that are endorsed in the Kingdom and other standards and pronouncements endorsed by SOCPA.iktvaIn-Kingdom Total Value

317、Add.The companys program to promote the development of a localized energy/industrial eco-system.Income tax law/tax lawIncome Tax Law issued under Royal Decree No.M/1 dated 15/1/1425H(corresponding to March 6,2004)and its Implementing Regulations issued under Ministerial Resolution No.1535 dated 11/6

318、/1425H(corresponding to August 11,2004),as amended from time to time.IPIECAInternational Petroleum Industry Environmental Conservation Association.IPOThe initial public offering.ISOInternational Organization for Standardization.Joint venture/JVThe term joint venture,as defined by IFRS,means a type o

319、f joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint arrangement.KAUSTKing Abdullah University of Science and Technology.KFUPMKing Fahd University of Petroleum and Minerals.KingdomKingdom of Saudi Arabia.KPIsKey performance ind

320、icators.LTILost time injuries/illnesses.Master Gas System(MGS)An extensive network of pipelines that connects Aramcos key gas production and processing sites throughout the Kingdom.Ministry of EnergyMinistry of Energy of the Kingdom.Successor to MEIM.Aramco Sustainability Report 202296Abbreviations,

321、terms and glossaryMethane(CH4)A hydrocarbon that is a greenhouse gas with a global warming potential most recently estimated at 25 times that of carbon dioxide(CO2).Methane is produced through anaerobic decomposition of waste in landfills,animal digestion,decomposition of animal wastes,production an

322、d distribution of natural gas and petroleum,coal production,and incomplete fossil fuel combustion.MotivaMotiva Enterprises LLC located in the US.NationalRefers to the Kingdom of Saudi Arabia.Natural gasUnderground deposits of gases consisting of 5090%methane(CH4)and small amounts of heavier gaseous

323、hydrocarbon compounds such as propane(C3H8)and butane(C4H10).Net zero emissions This is achieved when anthropogenic GHG emissions to the atmosphere are balanced by anthropogenic removals.NGLNatural gas liquids,which are liquid or liquefied hydrocarbons produced in the manufacture,purification and st

324、abilization of natural gas.For purposes of reserves,ethane is included in NGL.For purposes of production,ethane is reported separately and excluded from NGL.Nitrogen oxides(NOx)Gases consisting of one molecule of nitrogen and varying numbers of oxygen molecules.Nitrogen oxides are produced in the em

325、issions of vehicle exhausts and from power stations.In the atmosphere,nitrogen oxides can contribute to formation of photochemical ozone(smog),can impair visibility,and have health consequences;they are thus considered pollutants.Operational controlSaudi Arabian Oil Company in-Kingdom wholly-owned o

326、perated assets,SASREF,Motiva,ARLANXEO,Aramco Trading Company(ATC),Aramco Services Company(ASC),Aramco Overseas Company B.V.(AOC)and Saudi Aramco Asia Company Ltd.(SAAC).Original concessionSee definition to“Concession.”Paris AgreementThe United Nations Framework Convention on Climate Change Paris Agr

327、eement.PIFPublic Investment Fund of Saudi Arabia.Production costsThe sum of operating costs and depreciation,reflecting both the erosion of asset value over time on an accounting basis and the cost of operating the business.R&DResearch and development.ReservesThose quantities of liquids and gas,

328、which by analysis of geoscience and engineering data,can be estimated with reasonable certainty to be economically producible from a given date forward,from known reservoirs,and under existing economic conditions,operating methods and government regulations prior to the time at which contracts provi

329、ding the right to operate expire,unless evidence indicates that renewal is reasonably certain,regardless of whether deterministic or probabilistic methods are used for the estimation.The project to extract the hydrocarbons must have commenced or the operator must be reasonably certain that it will c

330、ommence the project within a reasonable time.ReliabilityTotal products volume shipped/delivered within 24 hours of the scheduled time,divided by the total products volume committed.Any delays caused by factors that are under the companys control(e.g.,terminal,pipeline,stabilization,or production)neg

331、atively affect the score,whereas delays caused by conditions that are beyond the companys control,such as adverse weather,are not considered.A score of less than 100%indicates there were issues that negatively impacted reliability.SABICSaudi Basic Industries Corporation.SASREFSaudi Aramco Jubail Ref

332、inery Company,a subsidiary of Aramco,formerly known as Saudi Aramco Shell Refinery Company.Saudi Aramco/AramcoSaudi Arabian Oil Company,together with its consolidated subsidiaries,and where the context requires,its joint operations,joint ventures and associates.Any reference to“us,”“we,”or“our”refer

333、s to Aramco except where otherwise stated.Unless otherwise stated,the text does not distinguish between the activities and operations of the company and those of its subsidiaries.Saudi Green Initiative(SGI)A national initiative for the Kingdom that strives to increase the Kingdoms reliance on clean energy,offset the impact of fossil fuels and combat climate change.Scope 1 GHG emissionsDirect emissions,which include GHG emissions from on