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Hydrogen Hydrogen is a primary element in oil and gas, and holds significant potential as a clean, affordable energy that could support emissions reductions in hard-to-decarbonize sectors such as heavy-duty transport, heating, and industrial applications. We believe hydrogen has significant potential to provide a material reduction in GHG emissions, as a global market develops over the next decade. Hydrocarbon’s crucial role in the development of a global hydrogen business Despite the interest and possibility of producing hydrogen from multiple energy sources, in the short and medium term, hydrocarbons will remain the primary feedstock for its production. Hydrogen has the potential to become a tradeable commodity, which opens commercial opportunities for our business over the medium to long term. At the same time, investments in low carbon hydrogen can help foster new technological and industrial development in economies around the world, while also creating skilled jobs. Natural gas and hydrogen Natural gas has the potential to be a viable, cost-effective feedstock for blue hydrogen production. Natural gas is the most used feedstock for hydrogen production today.
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Natural gas and hydrogen Natural gas has the potential to be a viable, cost-effective feedstock for blue hydrogen production. Natural gas is the most used feedstock for hydrogen production today. Aramco is a steering member of The Hydrogen Council, a CEO-led organization that promotes collaboration between governments, industry and investors to provide guidance on accelerating the deployment of hydrogen solutions globally. Blue hydrogen certification In 2022, Aramco and the SABIC Agri-Nutrients Company obtained the world’s first independent certifications recognizing “blue” hydrogen and ammonia production. The certification was granted by an independent testing, inspection and certification agency based in Germany, to SABIC AN, in Jubail, for 37,800 tonnes of blue ammonia and to Aramco’s wholly-owned refinery (SASREF), also in Jubail, for 8,075 tonnes of blue hydrogen. To certify ammonia and hydrogen as “blue” a significant part of the CO2 associated with the manufacturing process must be captured and utilized in downstream applications. Capitalizing on this agreement, we made the world’s first commercial shipment of blue ammonia to South Korea. What are we doing? Aramco Sustainability Report 2022 32 Differentiate Sustain Diversify Enable
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The energy transition offers challenges but also various opportunities for us to diversify our portfolio into new, lower impact value chains, including utilizing hydrocarbons for non- combustion uses, such as non-metallic materials and chemical applications, as well as investment in renewables projects. Such actions provide us with commercial opportunities and help improve our resilience to changes in customer demands caused by the energy transition. The materials transition According to a report issued this year by the Atlantic Council, a net zero energy system will be six times as mineral intensive as its hydrocarbon- based predecessor. However, the supply chains needed to deliver these minerals are significantly underdeveloped and undercapitalized; there is a projected $2 trillion investment gap over the next 15 years for the minerals needed to limit climate change — the world is underprepared for the risk of surging transition-related mineral demand. For example, one megawatt of installed renewable energy capacity utilizes eight to 11 tonnes of petrochemicals-based materials. Energy demand is projected to more than double from 79 gigatonnes in 2011 to 167 gigatonnes in 2060. Materials production, use, and eventual disposal already accounts for almost a quarter of all global CO2 emissions.
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Materials production, use, and eventual disposal already accounts for almost a quarter of all global CO2 emissions. The increase in materials use, even if decoupled from economic growth, will be accompanied by a further rise in CO2 emissions, particularly in hard-to-abate- industries. For example, emissions from concrete are projected to total almost four gigatonnes of CO2 by 2050 because of the growth in demand. Meanwhile, the iron and steel sector accounts for more emissions than the whole of road freight, and global demand for steel alone is expected to rise by more than a third by 2050. To achieve an accelerated materials transition, cutting-edge R&D, innovation, and the necessary investments are essential. At Aramco, we see opportunities arising from the materials transition. Steel, concrete and other traditional materials are responsible for significant CO2 emissions. Non-metallic materials, (e.g. polymers) and other carbon- based materials, can provide durable materials at a lower GHG impact with potential use in housing, construction, infrastructure, automotive, and renewables. At Aramco, we are working across them all.
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At Aramco, we are working across them all. No matter which energy transition scenario plays out, oil demand from the petrochemicals sector is likely to remain robust. In fact, under a net zero scenario, petrochemicals could account for more than half of total global oil demand by 2050. The more intense the transition, the more important petrochemicals will be to the oil and gas industry, and other industries. Our pursuit of sustainable materials is underpinned by a powerful business case that is driving our world leading chemicals growth ambitions — making our business portfolio even more robust. Developing and growing lower environmental impact value chains There is a projected $2 trillion investment gap over the next 15 years for the minerals needed to limit climate change 3333 Differentiate Sustain Diversify Enable
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Liquids-to-chemicals Our 2020 acquisition of a 70% stake in SABIC brought together two global companies committed to growth and value creation in petrochemicals. This propels our strategy to convert up to 4 million barrels per day of liquids-to-chemicals. More advanced, more sustainable materials would strengthen the power of our net zero ambition and our chemicals’ strategies. To earn a larger share of the materials market in high volume applications, we must be cost and GHG competitive. In 2022, we announced the first large-scale deployment of our crude to chemicals cracking technology at our S-Oil integrated downstream hub in Korea and a joint project between Aramco and SABIC to develop a crude-to- chemicals complex in Ras Al-Khair. These are major steps forward in our downstream business, and show the power of technical innovations to meet our ambitions. Conversion of crude oil into chemicals diverts our carbon from the transportation fuel value chain into durable goods. Our chemicals business spans production of basic chemicals such as aromatics, olefins, and polyolefins to more complex products such as polyols, isocyanates, and synthetic rubber.
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Our chemicals business spans production of basic chemicals such as aromatics, olefins, and polyolefins to more complex products such as polyols, isocyanates, and synthetic rubber. Our crude-to-chemicals technologies have the potential to deliver higher chemical yields. By converting crude oil directly to chemicals, we will optimize or eliminate several energy- intensive industrial processes, creating cost and operational efficiencies that result in high value chemical product streams. TC2CTM — Thermal Crude to Chemicals The TC2C™ platform was designed by Aramco and its partners to produce greater than 70% chemicals from every barrel of crude oil, while maintaining top tier efficiency. To reduce CO2 emissions while also improving profitability, TC2C™ deploys a simplification of the crude oil separation process, relative to a traditional fuels-directed refinery, thereby reducing energy and utility requirements. The reuse of heat from the steam cracking section reduces energy consumption even further. The optimized integration of the hydroprocessing reactor platforms into a single high-pressure loop enables a significant reduction of equipment count compared to more traditional approaches. Furthermore, through careful management of high-value streams such as hydrogen, and by internally recycling low-value streams, production of waste from the process is minimized.
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Furthermore, through careful management of high-value streams such as hydrogen, and by internally recycling low-value streams, production of waste from the process is minimized. Such efficiencies in energy and material use are major factors in reducing the carbon footprint and capital expenditure of a TC2C™ facility. TC2C™ was selected in 2022 for its first commercial deployment, as part of our S-Oil integrated downstream hub (Shaheen project) in South Korea. What are we doing? For more information on our chemicals business, please refer to our website Scan here Aramco Sustainability Report 2022 34 Differentiate Sustain Diversify Enable
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Non-metallics Non-metallics are materials such as plastics and other such applications, that can replace traditional materials and minerals. They can provide improved performance and lower maintenance costs and have potentially lower life cycle costs, with greater resistance to corrosion, and a lower carbon footprint than like-for-like alternatives. In the oil and gas industry, plastics are already being used for various applications, such as in pipelines. In the future, carbon fiber reinforced plastics will be used to manufacture large diameter pipelines with greater strength and operating efficiency than legacy steel-based pipelines. Today, the cost of advanced composite materials are becoming more competitive and we need to continue to invest in R&D in this sector — by finding new solutions and efficiencies, we can help drive the adoption of new materials at scale across the globe and thereby help meet net zero ambitions. Renewable energy investments Renewable energy, including power from solar and wind, is an energy source required under any energy transition scenario. With more than 320 sunny days per year and ample wind, Saudi Arabia’s geography and climate hold great potential for harnessing these renewable energy sources. Deployment of renewable resources within the Kingdom will reduce GHG emissions and support long-term prosperity.
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Deployment of renewable resources within the Kingdom will reduce GHG emissions and support long-term prosperity. The Saudi government has established a National Renewable Program with the goal of increasing the generation capacity of renewable energy sources to over 58 GW by 2030. 40 GW is planned from solar, 16 GW from wind energy and the balance from other renewable energy sources. Aramco is supporting the Kingdom on this journey and has committed to investing in 12 GW of solar and wind energy by 2030 by being part of a consortium led by ACWA Power to develop the 1.5 GW Sudair solar plant, a key project in Saudi Arabia’s renewable energy push. We will use the allocation of renewable energy credits from these investment toward offsetting the emissions associated with power supplied to our operations. Construction of the Sudair Plant has reached 56%. The project is expected to commence power generation in Q4, 2024. Microalgae Aramco is exploring various applications for microalgae. The Arabian Peninsula is ideal for microalgae production with its extensive, unique sabkha (salt flat) formations along the Arabian Gulf.
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Microalgae Aramco is exploring various applications for microalgae. The Arabian Peninsula is ideal for microalgae production with its extensive, unique sabkha (salt flat) formations along the Arabian Gulf. Through the photosynthesis process, algae efficiently converts sunlight, CO2, water, and the available nutrients in the wastewater into a carbohydrate and protein-rich biomass, and fresh oxygen, which is then released back into the atmosphere. The resulting biomass can then be converted into many useful products such as biofuel, animal feed, and pharmaceuticals. Sabkhas can be easily converted to saline algae production ponds. Sabkha areas are in close proximity to many of Aramco’s industrial facilities, meaning that emissions can be utilized to enrich algae ponds, increasing the potential for productivity and in turn reduce the Company’s emissions. Aramco also trialled an artificial carbon capture and algae production system, known as the “Clima Tree”. This uses a microalgae photobioreactor integrated with a patented CO2 scrubber to capture and store CO2 in the form of a carbonate mineral, and produce algae biomass as a byproduct. The Clima Tree has been designed by Aramco in collaboration with Greengroves Environmental Services.
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The Clima Tree has been designed by Aramco in collaboration with Greengroves Environmental Services. What are we doing? NEXCEL — Non-metallic Excellence and Innovation Center Aramco and the China Building Materials Academy (CBMA) launched NEXCEL, a new Non-metallic Excellence and Innovation Center, to further advance the use of non-metallic materials in the building and construction sector. NEXCEL promotes the development and application of non-metallic technologies by exploring opportunities for joint projects in research and development, standards development and adoption, professional development and certifications, advocacy and international outreach. NEXCEL joins the Aramco-launched NIC: Non-metallic Innovation Centre at The Welding Institute in Cambridge, U.K.; and NEx: A Center of Excellence for Non-metallic Building Materials at the American Concrete Institute, headquartered in Michigan, USA. What are we doing? 3535
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Collaboration with partners to develop and deploy technologies and infrastructure at speed and scale is necessary to support emissions reductions and the development of low carbon business opportunities. Working with other companies, including contractors, industry peers or companies in our product value chains, and with academia and research institutes, offers an opportunity to share learning and risk, and multiply the impact of investment. Carbon capture and storage CCS is identified as a major tool to achieve the global net zero emissions ambition. Industry and governments are responding to this. In 2022, more than 60 new CCS facilities were announced globally (around a 40% increase in CCS capacity since last year) and resulting in the CCS capacity of all CCS facilities under development globally to 244 MMtCO2 per annum1. We believe capturing and storing, and, where possible, reusing CO2 has the potential to significantly reduce global emissions. Saudi Arabia has the know-how and scale to capture and store large amounts of CO2, which could be reused and reutilized. It is an important part of the circular carbon economy and the central lever to support the decarbonization of our own business and operations.
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It is an important part of the circular carbon economy and the central lever to support the decarbonization of our own business and operations. It is also an essential element of an integrated blue ammonia and hydrogen program. Partnerships will be required for the development of commercial solutions. Aramco has set a goal of developing CCS capacity to capture up to 11 MMtCO2 annually by 2035. The ability to grow our CCS capacity is critical to our efforts to decarbonize, and will be supported by government incentives that will help to develop the infrastructure that will be required. In parallel, we are developing opportunities to use captured CO2 for conversion into other materials or products with higher economic value and where either combustion is avoided or lower levels of CO2 are emitted, e.g., plastics, concrete and biofuels. CO2 is a primary building block, which can be used both directly and as a feedstock. Current advanced CO2 utilization takes place in chemicals production, mineralization processes, and plastics and polymer production. We are also exploring direct air capture — a less mature technology — with technology partners.
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Current advanced CO2 utilization takes place in chemicals production, mineralization processes, and plastics and polymer production. We are also exploring direct air capture — a less mature technology — with technology partners. We realize the value that a decarbonization lever like CCS can achieve and as such we have fast-tracked the assessment and the development timeline for our first saline aquifer CO2 CCS project. The assessment entailed the deployment of multiple rigs to drill evaluation wells, and simultaneously acquiring all relevant subsurface data, in order to expedite the technical evaluation of the saline aquifer sink. This has lead to the announcement of our world-scale CCS hub that will have the capacity to deliver 9 MMtpa of CO2 by 2027 and sequester it in our saline aquifer sink. Collaboration with partners to develop and deploy technologies and infrastructure at speed and scale CO2 nanobubbles When CO2 is captured in liquid form, CO2 bubbles are formed. We are investigating CO2 nanobubbles (CO2 bubbles with diameters less than 200 nm) for near wellbore stimulation in conventional formations as they have the ability to sequester more CO2 in the same reservoir than common larger sized CO2 bubbles.
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CO2 nanobubbles are also being considered for green energy applications, such as algal biocrude production. For unconventional formations, carbon capture underground treatment and sequestration technology is being explored to chemically treat formations with the goal of increasing sequestration capacity. What are we doing? 1. Global CCS Institute – Global Status of CCS 2022 Report. Aramco Sustainability Report 2022 36 Differentiate Sustain Diversify Enable
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Jubail carbon capture and storage hub CCS is one of the key elements of the Saudi Green Initiative and a major contributor to the Kingdom’s plan to achieve its 2060 net zero ambition. In November 2022, the Ministry of Energy announced a target of capturing 44 MMtpa of CO2 by 2035. Aramco is a key partner supporting this ambition, and we signed a joint development agreement with SLB and Linde in building a CCS hub in the Jubail industrial zone in the Eastern Province of Saudi Arabia. This project will be one of the largest CCS hubs globally, and plans to capture up to 9 MMtpa of CO2 per year from 2027 onwards (Aramco’s share is around 6 MMtpa and our partners’ share is 3 MMtpa). What are we doing? To execute the project, Aramco has signed a joint development agreement with experts in the field to design, develop and construct the CCS hub, with a planned completion date of 2027. Phase one of the CCS hub is intended to capture around 6 MMtpa CO2 by 2027 from three Aramco gas plants (Fadhili, Khursaniyah, and Wasit).
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Phase one of the CCS hub is intended to capture around 6 MMtpa CO2 by 2027 from three Aramco gas plants (Fadhili, Khursaniyah, and Wasit). Phase 2 of the CCS hub is intended to capture around 5 MMtpa by 2035. By 2035 up to 11 MMtpa of CO2 will be captured from Aramco facilities and transported through a pipeline network via the Jubail CCS hub and stored below ground in saline aquifers. Aramco’s planned CCS facilities in Saudi Arabia Riyadh Fadhili Khursaniyah Wasit Saline aquifers Saudi Arabia Phase 1 2027 2035 Phase 2 Total ~6 MMtpa ~11 MMtpa ~5 MMtpa Jubail CCS hub 3737
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Offsets and carbon credits A carbon offset is a reduction in emissions of CO2 or other GHGs made to compensate for emissions made elsewhere. A carbon credit is an instrument traded in carbon markets representing this reduction and may take alternative names such as allowance, permit, or reduction unit. Aramco seeks to generate carbon credits by undertaking greenhouse gas reduction projects. The use of offsets is an important part of Aramco’s net zero planning as they enable the mitigation of hard to abate emissions. They also allow us to accelerate emissions reduction action, particularly where alternatives, such as CCS, are not fully mature. Carbon reduction operations may include a variety of techniques, such as natural climate solutions, or engineered carbon removal. Commercial arrangements can vary from directly financed projects and joint ventures, to fund investments, sustainable financing mechanisms in the form of carbon credits and direct purchases of carbon offsets from a voluntary carbon market. While all these techniques help to generate carbon offsets, our goal is to diversify the carbon offsets portfolio, balancing the carbon footprint with the value of co-benefits for the communities and ecosystems where we operate.
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While all these techniques help to generate carbon offsets, our goal is to diversify the carbon offsets portfolio, balancing the carbon footprint with the value of co-benefits for the communities and ecosystems where we operate. Aramco has planted 24 million mangroves along the Arabian Gulf and Red Sea coastlines and over 3 million terrestrial native trees — and we plan to plant millions more Concrete and CO2 capture The manufacture of cement — the principal ingredient of concrete — produces around 7% of annual global GHG emissions. If the global precast concrete industry implemented CO2 curing technology, it is estimated it could recycle at least 63 million tonnes of CO2 every year. The actual figure may potentially be as high as 246 million tonnes of CO2. At Aramco, we have developed a pilot program that has delivered storage of 150 to 200 kg of CO2 in a tonne of cement in precast concrete, or 60 to 80 kg of CO2 in 1 m3 of precast concrete, outside of the laboratory at a precast concrete plant. We achieved this by combining the CO2 with steam. What are we doing?
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We achieved this by combining the CO2 with steam. What are we doing? Aramco Sustainability Report 2022 38 Differentiate Sustain Diversify Enable
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Natural climate solutions Natural climate solutions are conservation, restoration and improved land management actions that increase carbon storage or avoid GHG emissions in landscapes and wetlands across the globe. Combined with innovations in clean energy and other efforts to decarbonize the world’s economies, natural climate solutions can deliver significant support to combating to climate change. Aramco is exploring the use of natural climate solutions to generate offsets. To date, Aramco has planted 24 million mangroves along the Arabian Gulf and Red Sea coastlines and 3 million terrestrial native trees — and we plan to plant millions more. Mangroves and trees form a natural sink for CO2. Mangrove and native tree planting also restores natural habitats, encouraging biodiversity, and act as a natural barrier to coastal erosion. To develop useable offsets, Aramco plans to develop baselines, confirm methodologies and establish third-party measurement and verification of carbon stored in mangroves and other trees being planted in Saudi Arabia and abroad. Aramco is working with external experts to assess the baseline ecosystem carbon stock around our existing mangrove forests to support and facilitate current and future verification assessments of carbon offsets from natural climate solutions projects.
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Aramco is working with external experts to assess the baseline ecosystem carbon stock around our existing mangrove forests to support and facilitate current and future verification assessments of carbon offsets from natural climate solutions projects. A third-party assessment, using The Blue Carbon Initiative methodology1, was undertaken to quantify the cumulative levels of carbon sequestered through mangroves planted by Aramco alongside both coasts of Saudi Arabia over a number of decades. The assessment recorded an average carbon stock of around 340,000 tCO2e (between 276,000 tCO2e and 410,000 tCO2e.) In line with the Saudi Green Initiative, which has a target to plant 10 billion trees and increase the percentage of protected areas in Saudi Arabia to more than 30%, Aramco plans to invest in planting 31 million mangroves in the Kingdom by 2025, 300 million in Saudi Arabia by 2035, with a further and 350 million mangroves outside Saudi Arabia by the same date. Carbon markets Putting a price on carbon would be a key enabler for motivating investment in emerging technologies that are currently not cost-effective. Aramco favors and supports efficient and cost-effective ways to set a carbon price.
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Carbon markets Putting a price on carbon would be a key enabler for motivating investment in emerging technologies that are currently not cost-effective. Aramco favors and supports efficient and cost-effective ways to set a carbon price. We believe market mechanisms that address climate Captura Captura, one of the latest startups invested in by Aramco Ventures, is exploring and looking to scale-up the potential for low-cost atmospheric carbon removal by leveraging the world’s largest natural CO2 absorber — the ocean. With minimal impacts on the environment and using only renewable electricity and ocean water as inputs, its patented electrodialysis process generates a stream of pure CO2 that can then be sequestered or utilized to make other low carbon products. Captura’s ocean carbon capture represents an innovative and potentially cost-effective approach to reducing atmospheric CO2. It can also be integrated with desalination infrastructure, which is already deployed at large-scale in Saudi Arabia. What are we doing? change and sustainable development, and take the economic circumstances of developing countries into account, offer a good balance between driving emissions reductions and supporting economic growth.
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What are we doing? change and sustainable development, and take the economic circumstances of developing countries into account, offer a good balance between driving emissions reductions and supporting economic growth. To be effective, any framework or market-based mechanism should cover all emitting sectors and all types of GHG emissions, recognize carbon intensity differentiation, equity, and revenue neutrality, as well as transferability of potential credits. Voluntary markets enable private investors, governments, non-governmental organizations, and businesses to purchase carbon credits to offset their emissions. The Regional Voluntary Carbon Market In 2022, Aramco signed a Memorandum of Understanding (MoU) with Saudi Arabia’s Public Investment Fund to support the establishment of the Regional Voluntary Carbon Market in Riyadh and participated in its inaugural auction, where 1.4 million carbon credits were sold, of which 650,000 were purchased by Aramco. 1. For more information on The Blue Carbon Initiative methodology. 3939
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Total R&D spend1 ($ million) 1,178 1,178 2020 2021 2022 1,033 755 The credits sourced through the auction are accredited by reputable international standards bodies compliant with globally accepted offsetting schemes (CORSIA) and originate from a variety of carbon reducing projects in developing countries between 2018 and 2020. Use of carbon offsets Aramco is building a portfolio of carbon offsets that is either generated through the projects it invests in, or purchased in the voluntary carbon markets. These carbon offsets will be used to offset the Company’s residual emissions once we establish our annual targets. Aramco is actively engaging in the development of global carbon markets through its memberships of the International Emission Trading Association and OGCI. Additionally, through Aramco Venture’s Sustainability Fund, we are planning to invest in new technologies promoting the development of global voluntary carbon markets.
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Additionally, through Aramco Venture’s Sustainability Fund, we are planning to invest in new technologies promoting the development of global voluntary carbon markets. Leveraging technology We have a track record of innovation and technology development and we recognize that a successful energy transition requires collaboration with a wide range of business and technology partners to develop the solutions needed: • As the energy transition gathers pace, Aramco is leveraging technology and innovation toward a low carbon future and driving sustainable energy solutions across our business and the industries we supply; and • We are innovating toward more sustainable solutions to help drive our positive impact on society and boost the quality of life for future generations. Embracing data-driven decision making: Aramco’s Support for the Archie Initiative As part of our ongoing efforts to drive sustainability and transparency in the energy sector, we support the Archie Initiative, an innovative scientific project aimed at enhancing GHG emissions estimations and fostering transparency within the global energy supply chain. The Initiative brings together leading researchers, analysts, energy producers and thought leaders from academia and industry to collaborate and provide data on the carbon intensities of various energy sources, enabling better-informed decision-making.
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The Initiative brings together leading researchers, analysts, energy producers and thought leaders from academia and industry to collaborate and provide data on the carbon intensities of various energy sources, enabling better-informed decision-making. The Initiative utilizes widely accepted life cycle analysis methods to enable a scientifically robust assessment and quantification of GHG emissions from various stages of the energy supply chain worldwide. We believe our partnership can contribute to a more data-driven energy sector, promoting more sustainable and responsible energy choices for the benefit of shareholders, customers, and the global community. What are we doing? 1. Total Group R&D including SABIC. 2. Includes direct R&D program costs plus estimated overheads. 3. Does not include SABIC R&D expenses. In 2022, our sustainability-related R&D was $435 million2, which equated to 59% (an increase of 7% from 2021) of total 2022 R&D spend of $737 million3. Our R&D spend encompassed sustainability focused solutions to improve our business and energy efficiency, lower our carbon footprint and enhance company circularity, as well as supporting the global energy transition towards a lower carbon emissions future.
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Our R&D spend encompassed sustainability focused solutions to improve our business and energy efficiency, lower our carbon footprint and enhance company circularity, as well as supporting the global energy transition towards a lower carbon emissions future. R&D focus areas 2021 spend ($ million) 2022 spend ($ million) CCS 24.7 41.5 Renewable energy 9.3 6.4 Energy efficiency 55.9 64.8 Waste management and recycling 31.1 32.3 Water management 29.7 32.2 Gas treatment 21.4 40.5 Low carbon hydrogen 25.6 26.4 Sustainable mobility 94.0 136.6 Crude to chemicals 7.8 30.3 Non-metallic applications 15.5 24.2 Total R&D for sustainability technologies2,3 315 435 Total Aramco R&D2,3 607 737 % of sustainability-related R&D out of Aramco R&D spend2,3 52% 59% 4,10 0 oil fields analyzed 96 countries 92% global production Aramco Sustainability Report 2022 40 Differentiate Sustain Diversify Enable
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Examples of ongoing R&D initiatives include: • Innovative technologies and processes for the utilization of CO2 in various applications to deliver alternative sequestration pathways; • Cost-competitive technology for large-scale CO2 capture from air for reusing it for e-fuels or storage; • New technologies that optimize/aid in the integration of alternate energies into upstream operations, reducing emissions associated with power consumption; • Cost-effective and efficient onsite hydrogen and electricity generation systems to provide low carbon hydrogen and electricity for transport; • With leading engine manufacturers, developing and demonstrating efficiency – and therefore reduced emissions – in internal combustion engines utilizing CO2, and emissions solutions; • Converting crude oil directly to chemicals to optimize or eliminate several energy intensive industrial processes; • In plastics, develop technologies and processes to reduce material and chemical consumption, and increase recycling; and • Reduce emissions associated with water processing and disposal/re-injection through reduced water production, recycling and reuse. IR 4.0 — the Global Lighthouse Network Three of our larger facilities have been accredited by the Global Lighthouse Network, a group of industrial sites that the World Economic Forum has identified as pace-setting in implementing Fourth Industrial Revolution technology at scale.
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The latest addition to the network is our Abqaiq Plant, the largest crude stabilization plant in the world. It joins Khurais Producing facility and our ‘Uthmaniyah gas plant. Aramco is the only major energy firm represented — a testament to our commitment to IR 4.0 technologies and to the scale of our ongoing digital transformation. Aramco’s digital transformation has affected almost every aspect of our Abqaiq Plant’s operations, with three key changes: First, the use of robots and drones equipped with cameras, thermal imagers, and gas detectors reducing reliance on in-person checks. Second, the introduction of machine learning and AI powered algorithms has enabled a continuous and proactive digital adjustment of the oil stabilization process — leading to a 4.5% increase in energy efficiency since 2019, as well as a reduction in CO2 emissions. Third, the use of data analytics and predictive modeling has enabled our engineers to anticipate potential disruptions more effectively.
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Third, the use of data analytics and predictive modeling has enabled our engineers to anticipate potential disruptions more effectively. Real-time data acquisition from well to wheel Online monitoring and optimization of the Company’s facilities from source to sink 10,000+ Input data points 167 Aramco facilities 2,730 Facilities in-Kingdom 100 Refineries out-of-Kingdom Decarbonization enabled by digitalization Modeling and optimization Mixed integer optimization Forecasting Machine learning advanced analytics Monitoring Calculations aggregation Carbon footprint solutions 4141
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Aramco Sustainability Report 2022 42
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Safe operations and people development At Aramco, safety is at the heart of everything we do. It is a core value that helps protect our people, assets, and environment. We are committed to a strong safety culture across our employees, contractors, and suppliers. We prioritize the training of our workforce to perform their jobs safely, while also promoting an open reporting culture. We empower our people to reach their full potential through providing a safe, respectful, and professionally challenging working environment. We are committed to respecting and protecting the rights of every single member of our workforce (employees and contractors); we expect and support our suppliers to do the same.
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We are committed to respecting and protecting the rights of every single member of our workforce (employees and contractors); we expect and support our suppliers to do the same. Material topics Relevant UN SDGs Workforce protection Number of fatalities Lost time injuries/illnesses rate (number of LTI cases x 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)/total number of open major health findings) Process safety and asset integrity Number of Tier 1 process safety events Human 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 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 apprentices Number of interns Total hours of training and development* Average hours of training and development* (per employee) Relevant metrics For more details on relevant metrics, see page 86.
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Learn more about how Aramco developed a safety strategy and worked on imbedding it as part of its culture since the 1940s.Scan here * Metric reported for the first time externally. 4343
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Our approach Aramco is committed to providing a safe workplace for our people. We believe that all injuries are preventable. We conduct business in a manner that strives to prevent incidents that have the potential to impact people, damage assets, or harm the environment. We are committed to developing our people, embracing diversity, and strengthening global collaboration with industry leaders to share safety knowledge, build capabilities, and address emerging challenges. Visible management commitment to safety is a cornerstone of the successful implementation of Aramco’s global safety policy. The Executive Management Safety Review (EMSR) program has been in place for over 40 years. Every month the president and CEO, along with a team of executive management, visit one of the Company’s major operational areas. During the visit, the executive team meets with area management to review their HSE performance and engage with employees and contractors to discuss any safety issues or concerns. Safety performance The table below provides an overview of our HSE performance over the past three years.
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Safety performance The table below provides an overview of our HSE performance over the past three years. 2022 2021 2020 Number of fatalities1 52 12 12 Total recordable case frequency1 (total recordable incidents x 200,000/ total work hours) 0.050 0.054 0.044 Lost time injuries/ illnesses rate1 (number of LTI cases x 200,000/ total work hours) 0.0142 0.017 0.011 Sadly, we had five fatalities in our workforce (one employee and four contractors) during the year. One employee passed away due to heat exposure after their car became stranded in the desert. Within our contractors and partners, one contractor lost his life due to a motor vehicle accident, a second contractor was struck by rotating equipment on a drilling rig, a third contractor was involved in a pipe stack collapse incident, and a fourth contractor was involved in a pipeline rupture fire. Each case has been fully investigated and the lessons learned have been communicated to all parties. We continue to work closely with our contractors to build a strong safety culture and prevent such incidents.
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Each case has been fully investigated and the lessons learned have been communicated to all parties. We continue to work closely with our contractors to build a strong safety culture and prevent such incidents. Workforce protection Responsible Care Responsible Care is the global chemical industry’s voluntary initiative to continuously improve environmental, health, safety and security knowledge and performance. Our wholly-owned subsidiary ARLANXEO completed the Responsible Care® 14001:2015 certification process for all of its worldwide locations. This broadens the scope of ISO 14001 beyond environmental management systems to include health safety and security and other Responsible Care requirements — the culmination of a project that commenced in 2020. What are we doing? 1. For 2020, the reporting boundary was Company in-Kingdom. As we progress on our reporting journey and our controls around ESG data mature, for this metric from 2021 onwards, the reporting boundary has been expanded to operational control. Please refer to page 86 for more details on our metrics’ reporting boundaries. 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 2022 44 Safe operations and people development
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What are we doing? Transportation safety initiatives Safety at sea We operate a fleet portfolio of over 270 vessels with more than 7,000 employees and contractors traveling over 1.4 million nautical miles. Our strategy is to enable safe behavior through focused international maritime, safety, and environmental standards as well as cybersecurity compliance. Aramco is committed to enabling excellence in safety, both onshore and offshore. Aramco’s marine operations span along the Kingdom’s coastlines from the Arabian Gulf to the Red Sea, providing safe, reliable and, cost-effective integrated marine solutions. This supports the Company’s critical offshore operations such as exploration, drilling, producing, exportation, crew transfer, oil spill response, subsea repairs, offshore logistics, and offshore security. Safety in the air Aramco’s Aviation Department operates one of the world’s largest corporate fleets, consisting of 49 owned and leased aircraft (both fixed wing and rotary), that annually transport more than 900,000 passengers safely to Kingdom-wide destinations, and globally. During 2022, we carried our people on some 29,000 flights traveling some 4 million miles.
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During 2022, we carried our people on some 29,000 flights traveling some 4 million miles. Our flights support Aramco’s operations by providing transportation, special missions, search and rescue, and evacuation services to our onshore and offshore operations. We maintain the highest level of safety standards while being mindful of our responsibility toward the environment. Our flight operations are benchmarked against airline industry standards and best practices, and are continually audited by internal and third-party aviation assessors. Safety on the road Aramco has over 11,000 vehicles, including over 500 buses, to transport our people for business, and in 2022, our vehicles traveled over 199 million kilometers. We closely monitor and support the safety of our people on the road. In addition to mandatory traffic training and education, we use digital solutions aimed at improving traffic safety. The Company launched SafeTravel — a digital journey management tool that provides real-time journey data to supervisors and journey coordinators — that enables personnel to complete their journeys in a safe manner. In addition, we piloted a number of AI solutions in vehicle monitoring systems that detect fatigue, distractions, drowsiness, and other negative driving conditions.
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In addition, we piloted a number of AI solutions in vehicle monitoring systems that detect fatigue, distractions, drowsiness, and other negative driving conditions. Recent initiatives: • Introduced a “Safety Corridor” initiative to reduce accidents on an 80 km stretch of the Dhahran - Al-Hasa Highway. • A traffic safety campaign, “The Park,” was conducted at the Dhahran Expo to promote traffic safety within local communities. The campaign attracted more than 41,000 visitors in person and more than 6 million views across social media platforms. • An initiative to enhance traffic safety on the roadways leading to Qatar; 1,950 km of roads were surveyed and evaluated and the technical report was shared with relevant ministries. 4545
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Emergency preparedness Aramco invests heavily in incident prevention, while also taking every measure to ensure emergency readiness. The Company has a dedicated Corporate Emergency Management Taskforce to ensure resilience and readiness through pre-planning and risk-based site-specific emergency response plans. In 2022, over 1,100 emergency exercises were conducted to train people and evaluate improvement opportunities. Contractor safety Aramco is committed to maintaining the safety and well-being of its contractors. Our approach is focused on proactive engagement, effective field presence, performance measurement, and governance. This approach is supported by a suite of custom risk-based tools that monitor contractor safety performance to ensure compliance with safety requirements. Our Construction Safety Index (CSI) monitors our construction contractors’ safety performance to ensure compliance with construction-related safety requirements. In 2022, over 3,300 CSI inspections were conducted. Driven by this success, the Company implemented a Turnaround Safety Index (TSI) focused specifically on contractors performing turnaround and inspection. In 2022, over 670 TSI inspections were completed.
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Driven by this success, the Company implemented a Turnaround Safety Index (TSI) focused specifically on contractors performing turnaround and inspection. In 2022, over 670 TSI inspections were completed. During the fourth quarter of 2022, we launched the Rig Safety Index (RSI) that monitors onshore and offshore drilling rigs. Over 60 RSI inspections were completed since its launch. We recognize the importance that state-of-the- art technologies play in delivering a proactive approach to safety. The Smart Site Safety Solution (4S) combines innovation and technology to detect and prevent construction site incidents. It extends support to management to mitigate major risks through zone monitoring, collision avoidance, confined space monitoring, and heat stress management. Using custom- developed software, 4S collects and processes data in real-time through video analytics and smart wearables. A new vision for safety training and certification Safety training and development has always been a key focus area for Aramco. In line with the Company’s focus on digitalization, we are transforming our training from a conventional classroom-based learning experience to a hands-on competency-based learning approach.
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In line with the Company’s focus on digitalization, we are transforming our training from a conventional classroom-based learning experience to a hands-on competency-based learning approach. Through immersive virtual reality (VR) simulations, trainees are able to conduct exercises in real- time, and we have introduced a collaborative training environment that enables multiple individuals to participate in simulations together. Aramco has deployed VR environments that allow personnel to undergo practical testing virtually. For example, scaffolding supervisors and inspectors are now tested in a VR environment. These technologies offer a multitude of benefits when compared with traditional and more conventional training methods, including cost-effectiveness, just-in-time learning, and the experience of high consequence failures in a safe environment. Safety at the world’s largest oil field — Ghawar We have established the Ghawar Intelligence Center as a unified information and collaboration hub. This has enabled the deployment of more than 300 Fourth Industrial Revolution technologies across safety, environment, health, and corrosion. This includes drones taking preprogramed routes within the facility, which automatically confirm and check several safety and environmental aspects within the plant. Off-road navigation and trip management solutions are also deployed to enhance the safety of the workforce working off-road. What are we doing?
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Off-road navigation and trip management solutions are also deployed to enhance the safety of the workforce working off-road. What are we doing? In 2022, over 1,100 emergency exercises were conducted to train people and evaluate improvement opportunities Aramco Sustainability Report 2022 46 Safe operations and people development
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Safety Management System Aramco’s Safety Management System (SMS) drives our commitment to safety across our business. It provides a framework that integrates occupational and process safety, and assists business units in meeting safety expectations. Our SMS was developed following comprehensive benchmarking with industry peers. It is aligned with requirements outlined in Occupational Health and Safety Management System ISO 45001:2018, and has been evaluated by an independent third party to ensure alignment with international practices. All Aramco organizations are assessed against SMS expectations, through our internal corporate safety assessment program. With over 50 SMS assessments performed in 2022, this program has been expanded further to include both in-Kingdom and international affiliates. Process safety Aramco adopts strong process safety practices to protect people, assets, and the environment. We employ a proactive approach to managing process safety through well-established programs covering safe operations, preventative maintenance, and asset integrity. We maintain a dedicated program aimed at assessing and monitoring process safety risks throughout our facilities. Tier 1 process safety events In 2022, the Company recorded 11 Tier 1 process safety events, all of which were investigated, with root causes identified and corrective actions implemented.
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Tier 1 process safety events In 2022, the Company recorded 11 Tier 1 process safety events, all of which were investigated, with root causes identified and corrective actions implemented. 2022 2021 2020 Number of tier 1 process safety events1 11 11 9 Out of the 11 events, nine occurred at in-Kingdom wholly-owned operated assets and two at an entity under Aramco’s operational control. None of the Tier 1 incidents in 2022 resulted in operational interruption. Two incidents were classified as major with the remaining classified as moderate. Six incidents resulted in injuries, including one fatality. Process safety and asset integrity Closed loop well testing A new closed loop well testing equipment design was developed to provide a remote interaction in sour environments. The design includes equipment and fluid monitoring devices that operate remotely to control the flow and measure the fluid properties. The design also minimizes personnel exposure to toxic gases during operations. This technology is now being rolled out for all sour wells in Saudi Arabia. What are we doing? 1. For 2020, the reporting boundary was Company in-Kingdom.
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This technology is now being rolled out for all sour wells in Saudi Arabia. What are we doing? 1. For 2020, the reporting boundary was Company in-Kingdom. As we progress on our reporting journey and our controls around ESG data mature, for this metric from 2021 onwards, the reporting boundary has been expanded to operational control. Please refer to page 86 for more details on our metrics’ reporting boundaries. 4747
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Our people Aramco is home to over 70,000 individuals from all over the world, comprising more than 85 nationalities. We are proud of the multiculturalism and diverse thinking that our community brings to the Company and strive to maintain an environment of respect and understanding. As per our commitment to the UN SDG 5 (Gender Equality) and UN SDG 8 (Decent Work and Economic Growth), along with our support for Saudi Vision 2030, we provide our people with opportunities and a safe environment to develop personally and professionally. Human rights in the workplace To be treated with dignity and respect is the right of everyone. We strive to uphold human rights in the workplace by acknowledging our role as a corporate citizen and promoting a positive culture that adheres to those values. We are committed to ensuring that employees are not subject to abusive or inhumane practices. We are opposed to all forms of slavery and exploitation, and child labor. Our corporate strategy involves engaging with stakeholders to prevent incidents that negatively impact human rights. We seek to make positive and lasting contributions in the areas of governance, transparency, respect for the rule of law, and social and economic development.
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We seek to make positive and lasting contributions in the areas of governance, transparency, respect for the rule of law, and social and economic development. We comply with local laws and respect international human rights principles, such as, the Universal Declaration of Human Rights, the Fundamental Conventions of the International Labor Organization, the UN Guiding Principles on Business and Human Rights, and the principles of the UN Global Compact. Aramco strives to ensure employees feel respected and safe. Our Code of Business Conduct lays out the minimum expectations we have of our people, our suppliers, and key stakeholders. The Code articulates our values: integrity, excellence, safety, accountability, and citizenship. We strive with our suppliers to ensure that all goods or services meet country of origin standards for human rights, including health and safety as a minimum. Aramco is home to over 70,000 people comprising more than 85 nationalities Human rights Aramco Sustainability Report 2022 48 Safe operations and people development
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Workers’ Committee Aramco Workers’ Committee is a team of selected employees who voluntarily represent all workers. The Workers’ Committee mandate is to present recommendations to management related to the areas listed below: • Promoting safety and occupational health; • Improving workers’ health and hygiene; • Improving work conditions and circumstances; and • Enhancing workers’ productivity and work-life balance. What are we doing?Employee relations To ensure our people enjoy working at Aramco, we engage with them regularly via various communication channels, such as town hall meetings, engagement surveys, recognition events, the intranet, periodic performance reviews, and the Young Leaders Advisory Board. We have a Workers Committee, which is managed by a voluntary team of elected employees to ensure our employees are heard and hold management accountable. Wherever we operate, we strive to comply with all labor laws with the goal of providing equal employment opportunities to employees and job applicants, while maintaining a workplace free from discrimination, harassment, and retaliation. We hire and promote the most qualified individuals, regardless of age, disability, gender, nationality, race, religion, or any other applicable protected category.
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We hire and promote the most qualified individuals, regardless of age, disability, gender, nationality, race, religion, or any other applicable protected category. Aramco has a non-retaliation policy which empowers our people to speak freely and confidently about issues and concerns that could improve our operations and to act with integrity. People who come forward with concerns play an important role in maintaining our ethical workplace. Employees are expected to report suspected violations of the law, policies, and the Code. To encourage an open, candid culture, Aramco offers several channels for employees to ask questions and speak up: • Management escalation; • Personnel department, Compliance department, Internal Audit department; • Corporate Security Division; and • An anonymous hotline. Grievances Aramco has a formal grievance process, which is overseen by our Personnel Department. This process ensures all items raised are fairly and objectively assessed. At Aramco, we believe that speaking up is an employee’s right. We ensure that all sites have grievance mechanisms in place for our employees to raise any concerns in confidence.
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At Aramco, we believe that speaking up is an employee’s right. We ensure that all sites have grievance mechanisms in place for our employees to raise any concerns in confidence. 2022 2021 2020 Number of grievances raised* 293 236 297 Sites with a grievance mechanism in place* (%) 100% 100% 100% * Metric reported for the first time externally. 4949
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Employees receiving a pe/r.altformance review (%) 90.6 98.4 96.8 90.6 2020 2021 2022 Attrition rate* (%) 2.4 7.8 2.8 2.4 2020 2021 2022 Our 2022 Forbes award For the third year in a row, Aramco was ranked number one on the 2022 Forbes “Top Companies to Work for in the Middle East” list and the highest rated company in the construction, oil and gas, mining and chemicals sectors. This is reflected in our low attrition rate. What are we doing? Employee engagement In October 2022, the corporate-wide Employee Engagement Census Survey was launched across Aramco to over 75,000 employees and contractors. The survey closed with a 59% response rate, which represents a healthy corporate response as validated against external benchmarks through an independent vendor. An analysis of our most recent engagement surveys concluded that employees wanted leaders who enable, care for, recognize and develop their teams. To assist leadership in enhancing the engagement of their people, a new set of Employee Experience Tools for leaders was created in relation to each key theme.
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To assist leadership in enhancing the engagement of their people, a new set of Employee Experience Tools for leaders was created in relation to each key theme. In total, 16 new tools were created as part of an interactive online toolkit. These include one-to-one conversation and team conversation guides. These tools have been downloaded more than 10,000 times. In addition, to support leaders at every level, a new virtual training, “An Introduction to Employee Experience for Leaders” was created in-house. The workshop provides useful definitions for employee experience and employee engagement, and shares practical steps chief position holders can implement to improve employee engagement. In addition to leaders, employee engagement is also supported by over 250 Employee Experience Champions who are embedded across the business. As a final step in the performance management program year-end cycle, annual employee performance reviews are facilitated by senior management during the months of January and February. For the 2022 business cycle, 90.6% of employees received a performance review. * Metric reported for the first time externally. Aramco Sustainability Report 2022 50 Safe operations and people development
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What are we doing? 2020 2021 2022 6.4 5.61 5.11 Labor practices Diversity and inclusion We are proud of the diversity and inclusivity our community brings to the Company with our people being from more than 85 different nationalities. We strive to maintain an environment of mutual respect and understanding. We are focused on continuing to build on our diverse workforce by increasing the number of opportunities for women. A major contributor to Aramco’s success in boosting diversity has been the establishment of diversity and inclusion corporate targets, metrics on female representation, females in leadership, and people with disabilities representation. This focus and effort, led by a dedicated diversity and inclusion team has resulted in the number of female hires increasing year-on-year for the past five years.
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This focus and effort, led by a dedicated diversity and inclusion team has resulted in the number of female hires increasing year-on-year for the past five years. 2022 2021 2020 Number of female employees* 4,503 3,802 3,400 Female (%) of total employees 6.4% 5.6%1 5.1%1 Female (%) of total number of new hires* 28.4% 31.2% 34.1% Number of female employees in leadership positions* 176 136 110 Female employees (%) in leadership positions 3.8% 3.1% 2.7% Visible progress on diversity In 2022, we achieved an 18% increase compared to 2021 in the number of female employees in our workforce. Aramco female employees include engineers and scientists across our operations, and in our research and development centers. In 2022, 50% (208 out of 414) of overall enrollments in our College Preparatory Program were female students. The CPP is a 10-month college preparatory program where students receive support to prepare them for the challenges of a top-tier university.
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The CPP is a 10-month college preparatory program where students receive support to prepare them for the challenges of a top-tier university. During 2022, our Security organization and Industrial Services organizations have developed and hired women into roles they had not traditionally held previously, e.g., security guards. 28.4% of direct new hires are female* 18% increase in female representation compared to the previous year 23% increase in female employees in leadership positions Female employees at Aramco (%) * 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. 5151
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Hired graduates (number) 1,459 460 1,447 1,459 2020 2021 2022 Apprentices (number) 1,728 1,001 1,369 1,728 2020 2021 2022 Interns (number) 3,190 641 1,922 3,190 2020 2021 2022 Embracing diversity and inclusion • Launched a Global Diversity Awareness Campaign. • Conducted a Disability Inclusion Awareness Campaign, in collaboration with Johns Hopkins Aramco Healthcare. • Recognized World Autism Awareness Day on April 2, 2022. • Hosted the Company’s first-ever Saudi Sign Language training. • Partnered with an international school to establish an in-Kingdom center to provide therapeutic and educational services for individuals with special needs (children and adults). Investing in our workforce Our success is based on having a happy, healthy, motivated, skilled, and diverse workforce. During 2022, we welcomed over 6,000 new people joining us either full-time or part-time.
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During 2022, we welcomed over 6,000 new people joining us either full-time or part-time. There was a: • 26% increase in the number of apprentices (1,728 in 2022 versus 1,369 in 2021); and • 66% increase in the number of interns (3,190 in 2022 versus 1,922 in 2021) joining Aramco. Education and training As a global energy and chemicals company, we are faced with addressing some of the world’s biggest technical, logistical, and environmental challenges. To ensure that our workforce can handle these challenges, we invest in talent development. We have a proud history, spanning decades, of providing opportunities for educating and training Saudi nationals, as well as our international workforce. Depending on employees’ training and development requirements, Aramco provides sponsored training to MBA level and specialized master’s programs at prestigious institutions around the world. The Company has delivered leadership and targeted development programs to over 18,500 participants through The Leadership Center, a world-class facility located in Ras Tanura and through affiliation with top-ranked business schools and world-class development partners such as Harvard, Wharton, and the London Business School.
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What are we doing? Aramco Sustainability Report 2022 52 Safe operations and people development
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Total hours of training and development* (million hours) 2020 2021 2022 13.012.8 12.1 In 2022, we recorded 13 million T&D hours provided to upskill our workforce and ensure they are provided with strong support to perform their roles effectively. In 2022, over $200 million was invested in the following training programs: Workforce well-being A healthy working environment is critical for employee health, positive engagement, and operational safety. To support our employees, dependents, and their families, medical services are provided across all Aramco sites and made easily accessible to our people. In 2022, a review of the existing well-being programs and activities at Aramco identified an opportunity to broaden the scope to reflect the Company’s size and scale. This resulted in the creation of new well-being strategy that focused on four key elements of well-being: physical, emotional, social, and financial. In addition, to support our contractor workforce, we have developed a Contractor Well-Being Program that provides a range of free services including a 24/7 hotline, video counseling and online resources.
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In addition, to support our contractor workforce, we have developed a Contractor Well-Being Program that provides a range of free services including a 24/7 hotline, video counseling and online resources. The program is complimented further by the Contractor Passport Solution that tracks salary payments and living conditions, which are assessed through a comprehensive contractor accommodation inspection program. Hosted University Programs Assessment Centers Leadership Programs Executive Leadership Programs Regular Development Program Non-Employee Programs The Company has delivered leadership and targeted development programs to over 18,500 participants * Metric reported for the first time externally. 5353
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Riyadh Jeddah Al-Hasa Abqaiq Dammam Ju’aymah Jubail Nairyah Khafji National Training Centers National Training Centers (NTCs) are the product of a strategic partnership between Aramco, selected government entities, and the private sector, which started in 2008. The established NTCs focus on the training of young Saudis. The centers prepare men and women to join different industry sectors, including oil and gas, drilling and workover, maritime, aviation, construction, inspection, IT, facility and hospitality management, power, and finance. The mission of the partnership is to equip Saudi Arabia with a highly motivated and qualified Saudi workforce. What are we doing? Total graduates as of December 31, 2022 48,048 42,553 ■ Male (89%) ■ Female (11%) 5,495 Aramco Sustainability Report 2022 54 Safe operations and people development
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To enable front-line leaders to provide greater support for their employees, Aramco introduced the “Supporting Employee Well-Being for Leaders” training, together with a globally recognized third-party vendor. During the year, over 600 leaders were trained in the pilot phase of the project, with a goal to train all leaders within two years. In addition, demand for well-being training continued in 2022 reaching over 5,000 employees. As a provider of both retirement and savings benefits for our employees, we encourage financial literacy and provide regular access to financial well-being programs and on-site financial consultants. We also provide unique amenities to promote a healthy work-life balance, including leisure activities, recreational facilities, self-directed groups, and nutrition and fitness coaching. We strive to ensure that all of our facilities are accessible to staff with disabilities. Mental health Mental health forms an important part of the overall well-being program at Aramco, and a dedicated team provides regular seminars to support employees, including: • Release Your Stress; • Move for Energy; • Human Energy Management; • Digital Detox; and • Resiliency and Thriving Our “Work-Life Support Program” provides 24/7 access to mental health services for employees and their families.
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The program works with a qualified vendor to link to a global network of mental health professionals who provide one-on-one counseling, life coaching, digital health programs, and many more offerings. The service is completely confidential and has been invaluable in helping employees to manage stress, mental health, work-life balance, and personal relationships. Since its inception, it has been accessed over 73,000 times. 5555
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Aramco Sustainability Report 2022 56
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Minimizing environmental impact We aspire to create a legacy of projects that improve natural habitats and protect shared resources, through best practice environmental management systems and initiatives that promote positive outcomes. We apply technology, innovation, and resources to invest in environmental protection and nature-based solutions, and we embed circular economy principles across our operations. Material topics Relevant UN SDGsRelevant metrics Local 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 positive impact* Water management Freshwater consumption (million m3) Freshwater withdrawal (million m3) Product stewardship and waste management Industrial waste generated (metric tonnes) Industrial waste recycled* (%) For more details on relevant metrics, see page 86. Learn more about how Aramco is taking real steps to protect the environment, and engaging in a range of projects and initiatives. * Metric reported for the first time externally. Scan here 5757
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SO 2 emissions2,3 (kilotonnes) 167 163 141 1671 2020 2021 2022 Environmental management systems Since 2012, our operations have been supported by a strong environmental management system based on ISO 14001 standards. As we strive to be consistent with local environmental regulations while following international best practices, our environmental management system provides a systematic and planned approach to achieve the desired outcomes. To support the certification process we appointed an independent third party to assess our systems against the requirements of the standard. During 2022, we achieved ISO 14001 certification* for 98%1 of facilities under our operational control. In 2023, we will continue to progress our efforts to achieve 100% certification. We also conducted more than 30 environment and health site assessments during 2022 to minimize any negative environmental and safety impact of our operations. Corporate circular economy roll-out program In 2021, we commenced the roll-out of a corporate execution plan to apply the principles of circular economy across the Company value chain. We are embedding circularity models in activities ranging from circular material management to environmental performance management to our investment master plan.
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We are embedding circularity models in activities ranging from circular material management to environmental performance management to our investment master plan. To date, we have launched over 20 initiatives, in critical areas such as water conservation, waste management, circular procurement services, circular construction and built infrastructure. We are developing our first integrated waste management facility that aims to deploy waste management technologies to recover, treat and manage the waste generated by our communities and operations. This includes a planned waste-to energy plant, so that Aramco’s waste can become a potentially usable source of energy for the Company. Please see page 67 for more details on our waste management initiatives. SO2, NOx, and VOCs We continued the development of the Sulfur Recovery Units Dashboard, which monitors all Aramco sulfur recovery units (SRUs) to ensure safe and optimal operations. The real-time dashboard shows key SRU performance tracking parameters that are used to ensure the highest possible overall sulfur recovery efficiencies. We also continued our SRU upgrades with tail gas treatment units to reduce SO2 emissions. We are expediting these projects in line with our commitment to environmental stewardship and to support our efforts in fulfilling our compliance obligations.
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We are expediting these projects in line with our commitment to environmental stewardship and to support our efforts in fulfilling our compliance obligations. Tail gas treatment is gaining importance as the preferred technology to address stipulations on sulfur recovery systems in the latest revision of environmental regulations in the Kingdom and as we explore economic opportunities for sulfur itself. We are focused on ensuring these technical improvements are implemented at scale to achieve their full potential. In 2022, our SO2 emissions were 18% higher than in 2021 due to increased production of gas from our facilities. As we continue to scale up our operations, technologies like SRU tail gas treatment will support our efforts in keeping our SO2 emissions low relative to our production. Local environmental impact * 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. 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.
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2. For this metric, the reporting boundary has been reclassified from operational control excluding ATC, ASC, AOC and SAAC to operational control for 2022, 2021 and 2020. This is because ATC, ASC, AOC and SAAC are office-based entities and therefore, have no SO2 emissions 3. The Jazan Refinery (our downstream refinery) is excluded 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 refinery’s operations and complete all necessary reporting configurations before the end of 2023. Reporting on the refinery’s environmental and sustainability elements will commence immediately thereafter, in line with the company’s commitment to operational transparency. During 2022, we achieved ISO 14001 certification* for 98%1 of facilities under our operational control Aramco Sustainability Report 2022 58 Minimizing environmental impact
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We are working to quantify NOx emissions from our point sources and ensure they follow corporate and governmental mandates. We have improved our relative accuracy testing from every two years to every quarter on all applicable facilities. Increased frequency of testing will allow us to identify the NOx emissions from all applicable operating facilities and address exceedances, if any. Our vapor recovery system helps to minimize emissions of volatile organic compounds (VOCs) from our bulk loading operations, including new and established refined product distribution depots, which continue to operate efficiently to reduce VOCs from the ambient environment. Spills to the environment Aramco operates across Saudi Arabia with many operations in remote areas. This increases the complexity of detecting spills onshore and offshore and providing a swift response to spill sites. We mitigate these challenges by employing rigorous inspection programs of assets, putting fail-safe measures in place, training employees, and utilizing advanced technologies to predict possible failures. While Aramco strives to achieve zero spills, we encourage the reporting to provide lessons learned and prevent future incidents. Regrettably there were 15 hydrocarbon spills that occurred in 2022 with a total hydrocarbon volume of 142,8851 barrels.
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Regrettably there were 15 hydrocarbon spills that occurred in 2022 with a total hydrocarbon volume of 142,8851 barrels. Two major onshore oil spills were responsible for more than 99% of the total oil spills. A volume of 130,000 barrels was spilled due to a ruptured pipe in the pipeline corridor near Shedgum in Saudi Arabia, due to nearby heavy equipment-related work. Aramco managed to rehabilitate the affected area. Further clean-up operations continued at year-end. A volume of more than 11,900 barrels was also spilled due to equipment failure that led to a flow line rupture in the ‘Uthmaniyah area; however, the spread of the spill was halted quickly by the response team by isolating the damaged section of the pipe and the team was able to recover the liquid in full. Remediation activities were ongoing at year-end to rehabilitate the affected area. We continuously invest in efforts to ensure lessons are learned from any hydrocarbon spills and shared across our business.
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Remediation activities were ongoing at year-end to rehabilitate the affected area. We continuously invest in efforts to ensure lessons are learned from any hydrocarbon spills and shared across our business. In 2022, we improved our asset integrity, process safety and prevention measures through the Company’s engagement with regional, national and international entities to carry out oil spill drills to evaluate our response capabilities. In the event of any spills and resultant pollution, we have response plans that enable rapid mitigation. Our management processes are particularly aligned to minimize the impacts of hazardous chemicals and air, water, and soil pollution and contamination. We have completed an upgrade on our containment and recovery equipment to ensure we have access to flexible solutions and the latest technology. Currently, we are engaged in efforts to introduce major upgrades to our existing aerial dispersant spray systems with the acquisition of advanced large aircraft. 2022 2021 2020 Number of hydrocarbon spills 15 13 6 Volume of hydrocarbon spills (barrels) 142,8851 14,447 134 1. This figure has undergone external limited assurance in accordance to the ISAE 3000 (revised). The assurance report can be found online here. 5959
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Governance framework With the planet experiencing a dangerous decline in nature as a result of human activity, the United Nations Biodiversity Conference (COP 15) concluded in Montreal, Canada, in December 2022 with 196 countries, including Saudi Arabia, signing up to the Kunming- Montreal Global Biodiversity Framework (GBF). The GBF aims to address biodiversity loss, restore ecosystems and protect indigenous rights, providing a refreshed roadmap for delivering the Global Goal for Nature. One of the key levers of the GBF is the protection and restoration of ecosystems to deliver 30 by 30 i.e. 30% of land and sea protected and 30% of degraded ecosystems restored by 2030. This principle lies at the center of Aramco’s Corporate Biodiversity Protection Policy and standard operating procedures developed in 2021 and applied as governance in 2022. These provide the framework and responsibilities of relevant Company organizations to ensure protection of biodiversity and ecosystem services wherever the Company operates and to restore degraded areas. The Company continues to work to update its operating procedures and standards to ensure we meet the commitments of the Biodiversity Protection Policy and support the aims of the GBF.
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The Company continues to work to update its operating procedures and standards to ensure we meet the commitments of the Biodiversity Protection Policy and support the aims of the GBF. We have continued to invest in biodiversity and in 2022 established a dedicated biodiversity team by forming our Environmental Biodiversity Division. Under the governance framework, Aramco strives to achieve a net positive impact on biodiversity and ecosystem services. In all our new projects we implement the biodiversity mitigation hierarchy, with enhanced outcome requirements for new projects to deliver net positive impacts for biodiversity and ecosystem services. In 2022, we developed a biodiversity KPI to help track the Company’s biodiversity performance. Biodiversity and ecosystems Achieving a net positive impact 1 Aramco’s Biodiversity Protection Corporate Policy provides the road map for all the Company’s operational areas to achieve a Net Positive Impact for biodiversity and ecosystem services. During the year, Aramco developed a new metric to measure and monitor its biodiversity footprint. The NPI is a metric that seeks to achieve net gains for biodiversity and ecosystem services. This occurs when the biodiversity gains through our conservation projects outweigh the overall negative impacts on biodiversity as a result of our operations on our owned land.
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This occurs when the biodiversity gains through our conservation projects outweigh the overall negative impacts on biodiversity as a result of our operations on our owned land. In 2022 (our baseline), our NPI* was 53%2 and we have set a target to increase the NPI by 30% by 2025. What are we doing? The KPI is based on spatial area of operational footprint versus the area of biodiversity projects, and so does not include aspects such as ecological quality and condition data. However, it represents the best proxy evaluation of Company’s biodiversity currently available. The biodiversity KPI is being further developed to reflect the complexity of biodiversity measurement and assessment. The most effective way to conserve biodiversity is to avoid operating in high-quality habitat. Where Company activities must interact with biodiversity, we seek to minimize negative impacts by refining our standard operating procedures. When habitats have been impacted, the degraded areas are restored. Finally, unavoidable and long-lasting impacts need to be offset, for example by creating new habitat. These workstreams are delivered by investing in four enabling elements: a strong governance framework, targeted mapping and monitoring, applied research, and education and awareness.
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These workstreams are delivered by investing in four enabling elements: a strong governance framework, targeted mapping and monitoring, applied research, and education and awareness. This biodiversity framework aligns with Ipieca guidelines on biodiversity protection and the LEAP (Locate, Evaluate, Assess, Prepare) approach from the Taskforce for Nature-related Financial Disclosures. * Metric reported for the first time externally. 1. Please refer to page 86 in the Data section of this report for the formula of this metric. 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 2022 60 Minimizing environmental impact
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We will not operate in designated world heritage sites, strict nature reserves, or wilderness areas, and will ensure our operations result in no net loss of biodiversity and ecosystems services in national parks, key biodiversity areas and vulnerable bird habitats. During 2022, we designated an additional two Biodiversity Protection Areas; we now have 12 Biodiversity Protection Areas covering 985 km2. Together, these sites protect more than 500 species of plants and animals, including at least 55 species or subspecies that are unique to Saudi Arabia. We reintroduced locally extinct species at the Shaybah Wildlife Sanctuary, and restored degraded wetlands at Abqaiq. Whenever we have to offset our impacts, we seek to get our offsets assessed by a credible third party. We conduct applied research The Company conducts applied research aimed at ensuring its activities do not cause undue impacts on biodiversity, including collaborative research partnerships with King Fahd University of Petroleum and Minerals and King Abdullah University of Science and Technology. We invest in biodiversity education and awareness The Company constructed educational visitor centers at our Mangrove Eco-Park in Rahimah Bay and Shaybah Wildlife Sanctuary in the Rub’ al-Khali.
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We invest in biodiversity education and awareness The Company constructed educational visitor centers at our Mangrove Eco-Park in Rahimah Bay and Shaybah Wildlife Sanctuary in the Rub’ al-Khali. Minimize We minimize our impacts Restore We restore degraded habitat Offset What we cannot avoid, minimize, or restore, we offset Avoid We avoid high quality habitat We map and monitor to understand the biodiversity around us In 2022, we mapped and monitored the area around us in the Berri Gas Plant identifying various species (see the following page for more details). Governance framework Our biodiversity mitigation hierarchy 6161
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4 5 3 2 6 7 1 8 9 10 11 12 Saudi Arabia Biodiversity at Aramco An impressive array of biodiversity exists within Saudi Arabia, including over 2,400 plant species, 1,230 marine fish species, 499 bird species, 266 coral species, 117 mammals, 107 reptiles, eight amphibians, eight freshwater fish, and numerous invertebrates. It is inevitable that our activities will at times overlap and potentially impact areas of biodiversity value and much of this biodiversity can be found in our operations and reservation areas. Our operating areas, including fenced areas, along coastlines and around offshore platforms, are home to significant patches of remnant biodiversity. These provide high quality habitat for threatened, endemic (unique to Arabia), and/ or migratory species. By conserving these valuable natural resources, the Company helps to fortify the Kingdom’s biodiversity for current and future generation, and replenish terrestrial and marine ecosystems and their ecosystem services, including promoting well-being within our workforce. We coordinate with and contribute to national biodiversity strategies within Saudi Arabia and wherever we operate.
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We coordinate with and contribute to national biodiversity strategies within Saudi Arabia and wherever we operate. We have created digital habitat models that identify and show the potential habitat of every species that resides in the Kingdom. These habitat models enable Aramco to identify, prioritize, avoid, and reserve high quality habitat on Company land and reduce impacts on biodiversity, as well as targeting resources for restoration and biodiversity protection. In 2022, at our Berri Gas Plant in northern Saudi Arabia, we conducted a comprehensive biodiversity survey to map species and habitats found within the area of the facility (32 km2). The study identified 431 species; 204 plants, 163 birds, 41 mammals, and 23 reptiles. Of these 45 species were recorded as High Conservation Priority Species, as per the International Union for Conservation of Nature Red List of Threatened Species. Biodiversity Protection Areas The Company identifies and designates its own Biodiversity Protection Areas over valuable patches of habitat, which we avoid operating in.
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Biodiversity Protection Areas The Company identifies and designates its own Biodiversity Protection Areas over valuable patches of habitat, which we avoid operating in. An internal procedure outlines the steps required to designate Aramco Biodiversity Protection Areas over high quality habitat, requiring a third-party consultant to confirm that a proposed site is of sufficient ecological quality to warrant designation as a corporate Biodiversity Protection Area. Aramco’s Biodiversity Protection Areas The most effective way to conserve biodiversity is to avoid high-quality habitat. Under the Corporate Biodiversity Protection Policy, Aramco will not operate in designated World Heritage Sites, Strict Nature Reserves, or Wilderness Areas, and will ensure our operations result in no net loss of biodiversity and ecosystem services in National Parks, designated Important Bird and Biodiversity Areas, Important Plant Areas, and Aramco Biodiversity Protection Areas. Biodiversity Protection Areas contain at least 55 endemic species or subspecies (plants and animals that are found only in the Arabian Peninsula).
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Biodiversity Protection Areas contain at least 55 endemic species or subspecies (plants and animals that are found only in the Arabian Peninsula). Our protected sites: 1 Shaybah Wildlife Sanctuary 2 Rahimah Bay Mangrove Eco-Park 3 Abu Ali Island 4 Tanajib Biodiversity Protection Area 5 Manifa Biodiversity Protection Area 6 Abqaiq Wetlands 7 Udhailiyah Biodiversity Protection Area 8 Abha Biodiversity Protection Area 9 Bahra Biodiversity Protection Area 10 Madina Biodiversity Protection Area 11 Khurais Biodiversity Protection Area 12 Bagga Bird Oasis As at the end of 2022, there were over 985km2 of Biodiversity Protected Areas Aramco Sustainability Report 2022 62 Minimizing environmental impact
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In 2022, the Company increased its Biodiversity Protection Network by 20%, and currently has twelve designated sites totaling over 985 km2. Each of these sites is recognized as fulfilling International Union for Conservation of Nature protected area criteria and protects regionally or internationally significant biodiversity, such as the presence of threatened, migratory and/or endemic species. Over 500 species of birds, reptiles, mammals, amphibians, and plants are protected within Aramco’s Biodiversity Protection Areas, including at least 55 endemic species or subspecies. Many of these species are globally endangered; others are highly migratory, flying 10,000 km or more to forage at Company protected areas; some exist in Arabia and nowhere else on earth — and all of them need our ongoing stewardship. Wetlands strategy Water plays a vital role in the ecology and environmental health of the nation.
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Wetlands strategy Water plays a vital role in the ecology and environmental health of the nation. In 2022, a Company-wide wetlands strategy was developed, consisting of two major themes that reflect the intersection of the Company with Saudi Arabia’s environment: • Restoration and protection of natural wetlands on Company land, primarily for biodiversity conservation outcomes (but with co-benefits such as carbon sequestration); and • Creation of constructed wetlands that provide nature-based solutions for sustainable and efficient wastewater treatment (with biodiversity and other ecosystem service co-benefits). Fact-finding missions to constructed wetlands in the Middle East region established the feasibility and parameters for their development. All the natural wetlands and evaporation ponds with potential for conversion to constructed wetlands were mapped in the Kingdom and on Aramco reservation land. Using Aramco’s bespoke biodiversity heat map for the Kingdom, we identified the most important natural wetlands on Company land to protect. This led to the designation of a new wetland Biodiversity Protection Area in 2022. We will continue designating priority natural wetlands as Biodiversity Protection Areas.
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This led to the designation of a new wetland Biodiversity Protection Area in 2022. We will continue designating priority natural wetlands as Biodiversity Protection Areas. We are also developing ecosystem service assessments to measure the full range of benefits from constructed wetlands in addition to their wastewater treatment and energy efficiency attributes. Manifa Bay At the 2022 Middle East Energy Awards, Aramco won the Upstream Project of the Year Award, for its development, management, and production of the Manifa field, and its innovative solutions for protecting the fragile marine ecosystem in Manifa Bay. When planning the development of the Manifa field, residents and fishing communities of Manifa Bay were considered carefully, using a multifaceted approach to field development and balancing sustainable production operations with the preservation of Manifa Bay’s ecosystem. What are we doing? 6363
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Mangroves planted (millions) 2020 2021 2022 24 13 6 Nature-based solutions Nature-based solutions are actions that protect, sustainably manage and restore natural and modified ecosystems in ways that address societal challenges effectively and adaptively, to provide both human well-being and biodiversity benefits. Mangrove forests are one of nature’s most powerful ecosystems, providing life-sustaining habitats for plants, birds, nursery areas for marine life, and supporting local communities relying on these productive ecosystems for their food security and well-being. They may also serve as an underwater nursery where juvenile fish and shrimp can grow in relative security before venturing out into the open ocean. Also, the complex and deep descending mangroves’ root structures can prevent shoreline erosion from waves and heavy storm surges, providing a natural adaptation to climate change impacts. As vast stretches of Saudi Arabia’s coastline are suitable for this forestation (and reforestation), we have invested significant resources in planting millions of mangroves. Tree planting using drones We have piloted drone technology for planting native trees and monitoring growth of these trees and the mangroves.
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Tree planting using drones We have piloted drone technology for planting native trees and monitoring growth of these trees and the mangroves. The pilot: • Enabled seed germination technique for drone plantation; • Conducted soil and water analysis; • Planted 100,000 native trees using drones; and • Achieved a plantation success rate exceeding 88%. Coral reefs Coral reefs are the most diverse ecosystems in the world. Aramco has been actively promoting the growth of marine life with artificial reefs. In addition to the offshore oil and gas facilities that act as artificial reefs by providing substrate for marine communities, we are working together with the Okinawa Coral Reef Conservation Consortium, Japan. Building on 11 years of research, we conducted studies on how to restore coral reefs, and ran educational programs. Aramco Singapore is working with the National Parks Board on the trial application of CoralAID Mineral Accretion units to enhance coral growth. Under this technology, corals are subjected to low-voltage electricity to stimulate their growth. We are also helping to rescue and rebuild important reefs in the coastal waters of the United States, the Caribbean, and Mexico through grants by the National Fish and Wildlife Foundation’s Coral Reef Conservation Fund.
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We are also helping to rescue and rebuild important reefs in the coastal waters of the United States, the Caribbean, and Mexico through grants by the National Fish and Wildlife Foundation’s Coral Reef Conservation Fund. Seaweed Seaweed is a carbon negative crop and has a high potential for climate change mitigation. The Intergovernmental Panel of Climate Change (IPCC) Special Report on the Ocean and Cryosphere in a Changing Climate recommends “further research attention” as a mitigation tactic. We developed a sustainable seaweed farming facility at Yanbu’, and to date, we have spent over $1.5 million using this project to remove GHG and NOx by producing macro algae (seaweed). The laboratory, nursery and workshop have been built, but the farm is still under development. Mangroves We have an ambition to plant 300 million mangroves in KSA and 350 million mangroves outside KSA by 2035. In 2022, we set an interim target to plant another 31 million mangroves along the Arabian Gulf and Red Sea shorelines by 2025.
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In 2022, we set an interim target to plant another 31 million mangroves along the Arabian Gulf and Red Sea shorelines by 2025. This plantation target will support marine ecosystems adjacent to the Company’s operation in Abu Ali, Rahima, Yanbu’, and Jazan. To date, we have planted accumulatively 24 million mangroves. What are we doing? 11 million mangroves and 1 million trees were planted in 2022 Aramco Sustainability Report 2022 64 Minimizing environmental impact
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Water management Aramco’s approach to water Headquartered in one of the most arid environments in the world, water management has been an essential focus of our business since our inception. Today, that means: • Assigning an economic value to groundwater allocated for projects to incentivize the use of alternative sources; • Reducing our dependence on groundwater by using alternative water sources, such as seawater, treated sewage effluent, and treated reject streams, including significant investment in desalination; and • Ensuring the safety of the drinking water supply for our own and our host communities through water safety plans, which require the producer to conduct comprehensive risk assessments from the source to the consumer tap. In 2022, we completed the utilization of treated sewage effluent as make up water for cooling systems across several air conditioning plants in our communities. We also evaluated and deployed water efficient irrigation technologies to reduce irrigation water demand. Hydrogel technologies were deployed at the Khurais Producing facility and the irrigation water demand at that site is expected to reduce substantially as the technology increases water holding capacity, aeration balance and improves soil structure.
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We also conducted water conservation assessments to reduce freshwater consumption through the identification of gaps, and the implementation of best practices and water conservation initiatives. As part of our efforts to improve our monitoring and reporting of all our operations, we expanded the reporting boundaries of our two water metrics1 from Company in-Kingdom only to operational control for 2022. During the year, our freshwater consumption was 93.62 million m3; a small decrease from the prior year (94.6 million m3) and our freshwater withdrawn fell by 3.5% (136.6 million m3 in 2022 compared to 137.3 million m3 in 2021). The slightly lower trend in freshwater withdrawn performance is mainly due to our continued water conservation efforts, despite the increase in production. Deploying new technologies to conserve groundwater Two technologies were pilot tested in 2022: Crude desalting technologies were deployed at several of our facilities to enhance the process, improve crude quality, and optimize de-emulsifier consumption, reducing demand for wash water, thereby reducing the consumption of groundwater.
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Produced water treatment technologies, in which a high salinity water is pretreated then desalinated using one of these processes, eliminating the need to use groundwater as wash water altogether. 2 1 Wastewater and discharges to water We recognize the need to responsibly manage and treat water prior to returning it to the environment, and have a comprehensive wastewater effluents management program. Sustained performance has been achieved over the years by maintaining figures within targets. In 2022, we recorded a 47% reduction (16.42 barrels in 2022 versus 30.7 barrels in 2021) in our hydrocarbon discharge to water (HC2W). This is as a result of various activities, including: • Pro-active measures to avoid any incidental discharge; • Preventive maintenance of aging equipment; and • Enhanced monitoring and tracking of the metrics through the HC2W corporate dashboard.
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2022 2021 2020 Hydrocarbon discharge to water1 (barrels) 16.42 30.7 20.2 Freshwater consumption1 (million m3) 93.62 94.6 90.2 Freshwater withdrawal1 (million m3) 136.6 137.3 142.9 1. As we progress on our reporting journey and our controls around ESG data mature, for this metric, we have expanded the 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. 2. This figure has undergone external limited assurance in accordance to the ISAE 3000 (revised). The assurance report can be found online here. In 2022, we recorded 47% reduction in our hydrocarbon discharge to water 6565
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The Company continues monitoring hydrocarbon discharge to water data through the HC2W dashboard. In 2022, we further developed the dashboard to enhance the use of data and reduce the chance of error while reporting data. The HC2W metric is the total amount of hydrocarbons in barrels (bbl) that the Company systematically releases to surface water through regulated industrial wastewater discharge and excludes hydrocarbon releases from accidental oil spills, which are tracked separately. This has given us greater control over the wastewater we generate, thereby enhancing our capacity to improve water quality by reducing pollution, eliminating dumping and minimizing the release of hazardous chemicals and materials. Since 2021, the Company has been holding workshops with relevant facilities to provide clear guidelines of the reporting methodology. In 2022, we also augmented our management processes with updates to our Company’s asset integrity, process safety and prevention measures. These measures enhance our precautionary approach and risk management practices toward the environmental management of our operations, which require us to maintain specific environmental assessments and promote these best practices with our supply chain partners.
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These measures enhance our precautionary approach and risk management practices toward the environmental management of our operations, which require us to maintain specific environmental assessments and promote these best practices with our supply chain partners. Drilling fluids recycling Over the years, we have continued using drilling fluids recycling techniques, where properties of drilling fluids such as oil-based, water-based, and brine-based fluids are adjusted to fulfill specific operational requirements, as well as completion activities. These fluids are stored after being used, and in many cases treated, to be used on other wells, avoiding building new volumes from the scratch. As part of our effort, and to share lessons with other energy companies, we are a member of Ipieca’s Water Working Group. Winner at the World Oil Awards At the 2022 World Oil Awards, Aramco won The Best Water Management Technology Award for the Zero Liquid Discharge Technology. With relatively large volumes of water produced along with hydrocarbons in oil and gas fields, a sustainable produced water management solution was developed and piloted to recycle and reuse water by transforming its ionic properties.
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With relatively large volumes of water produced along with hydrocarbons in oil and gas fields, a sustainable produced water management solution was developed and piloted to recycle and reuse water by transforming its ionic properties. The technology comprises a unique combination of a custom-designed pretreatment system to remove residual oil, hydrogen sulfide, and a dynamic vapor recovery technology for salt removal from hypersaline oil field produced waters. Such technology would enable the adequate and effective recycling and reusing of produced water. What are we doing? Avoiding groundwater use at Jafurah Our plans for the development of the Jafurah unconventional gas field (a gigantic basin with an estimated 200 trillion standard cubic feet of gas, with wells drilled with long horizontal lateral lengths, which require significant water use) incorporate avoiding the need to draw on groundwater by building a dedicated seawater treatment facility to supply enough water for the process. What are we doing? What are we doing? Aramco Sustainability Report 2022 66 Minimizing environmental impact
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