Mubadala Energy, the Abu Dhabi headquartered international energy company, on Wednesday announced significant progress across key Environmental Social and Governance (ESG) drivers, including a two-thirds reduction in Scope 1 and 2 greenhouse gas (GHG) emissions from 2022.
Launching its 2023 report, the company also noted a near halving of energy consumption across its operated portfolio, marking a major acceleration in efforts to decarbonise the business.
In line with the company’s strategy to support the energy transition, Mubadala Energy’s gas weighting increased from 66 per cent in 2022 to 69 per cent in 2023. As a far less carbon intensive fuel, gas plays a key role in enabling a sustainable transition and coupled with further traction in new energy sectors including Carbon Capture Utilisation and Storage (CCUS) and geothermal, this report highlights Mubadala Energy’s transformation in action. In addition, the company recorded a significant improvement in its GHG emissions, with a 66 per cent reduction in Scope 1 & 2 emissions last year, bringing its average emissions intensity to 15.3 kgCO2e/boe.
Commenting on this year’s report, Mansoor Mohamed Al Hamed, Managing Director and CEO at Mubadala Energy, said, “Mubadala Energy’s fifth annual sustainability report highlights our progress in putting sustainability at the heart of the business. We’re proud to have made a significant reduction in both emissions and energy consumption, paired with real progress across our social impact and governance. We continue to deliver operational excellence and uphold our impressive safety record, while investing in our people and the communities we serve.”
“With a clear strategy to proactively contribute to the energy transition by expanding our position in gas as a key bridge fuel, last year we also announced the first of our game-changing gas discoveries in Indonesia. This new growth platform will see sustainability continue to be at heart of our plans for the future as we accelerate our contribution to the energy transition,” he added.
Last year also saw Mubadala Energy make significant strides in its new energies’ growth strategy. Commenting on this, Sumiyyah Mohammed, Vice President, Growth and New Energies at Mubadala Energy noted, “Collaboration and partnerships have been key to advancing our progress in new energy arms such as CCUS and geothermal energy; we continue to work closely with our stakeholders across the industry to ensure we are at the forefront of these and other low carbon solutions in the region where we do business.”
The report highlighted that there were zero spills of greater than 1 barrel recorded in the company’s operated assets from inception to date. The company is committed to plant 700,000 mangroves in the UAE by 2030.
There was 62 per cent reduction in flared gas within the operated assets compared to 2022.
On social front, there was zero total recordable injury rate (TRIR), and a lost-time injury rate (LTIR) across all operated assets. There were over 24,000 beneficiaries of the CSR projects in 2023, with well over 1 million people positively impacted in the last ten years. There is 27 per cent female representation across the entire organization, which is significantly above the industry average.
On the governance front, zero incidents of non-compliance were recorded with applicable laws and regulations in 2023. About 72 per cent of Total Spend in 2023 was on local suppliers. Independent members of the Board of Directors constituted 43 per cent.
Mubadala Energy’s 2023 Sustainability Report was prepared in accordance with Global Reporting Initiative (GRI) Standards and includes alignment with the recommendations of the Task Force on Climate Related Disclosures (TCFD) where applicable. The report discloses its impact in 2023 examining several key performance indicators across areas such as operational and environmental impact, social contribution, human capital, and governance. The review also provides a detailed appraisal of the company’s contribution to achieving the key UN Sustainable Development Goals.