Climate Change Data

Velesto Energy Berhad

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:63,946 tCO2e/year
Scope 1 Emissions:63,469 tCO2e/year
Scope 2 Emissions:477 tCO2e/year
Scope 3 Emissions:67 tCO2e/year
Renewable Energy Share:Not disclosed
Total Energy Consumption:834,848 GJ/year
Water Consumption:101,294 liters/year
Waste Generated:223.72 tons/year
Carbon Intensity:34 tCO2e/operating day; 53 tCO2e/RM million revenue

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • 28% reduction in emissions intensity by operating days
  • 62% reduction in emissions intensity by revenue
  • Zero major spills
  • 2.2% reduction in water consumption intensity by operating days

Social Achievements

  • Zero Lost Time Incidents (LTIs) for Velesto employees
  • 732 employees (1.4% increase)
  • 75% workforce is Malaysian (2% increase)
  • 70% of total procurement was spent on local suppliers (14% increase)
  • 4 biodiversity assessments undertaken for new working sites
  • 41% increase in investment towards biodiversity and environmental conservation

Governance Achievements

  • Launched new Velesto Anti-Corruption Plan (“VACP”)
  • Women make up 44% of our Board, 36% of our Senior Management, 51% of our Executive Employees
  • Zero incidents involving data breaches
  • 86% of our organization was assessed for corruption risk

Climate Goals & Targets

Long-term Goals:
  • Net Zero Emissions by 2050
Medium-term Goals:
  • 10% reduction in emissions intensity per operating day by 2030
  • 30% reduction in emissions intensity in terms of revenue by 2030
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Maintaining a strong safety record despite increasing operational activity.
  • Managing environmental impacts from increased rig utilization.
  • Addressing a reportable integrity incident.
Mitigation Strategies
  • Continuous improvement of HSE practices and training.
  • Enhanced waste circularity assessments.
  • Thorough investigation of integrity incident and implementation of corrective actions.

Supply Chain Management

Supplier Audits: 33 audits in 2023

Responsible Procurement
  • Code of Business Conduct and Ethics
  • Anti-Bribery and Corruption Policy
  • Prioritization of local suppliers (70% of total procurement spend)

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Flooding
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI Standards 2021: Core Option, Bursa Sustainability Reporting Guide 3rd Edition, Task Force on Climate-related Financial Disclosures (“TCFD”)

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, ISO 29001:2020

Third-party Assurance: Ernst & Young and DNV-GL

UN Sustainable Development Goals

  • Goal 4 (Quality Education)
  • Goal 5 (Gender Equality)
  • Goal 8 (Decent Work and Economic Growth)
  • Goal 13 (Climate Action)
  • Goal 14 (Life Below Water)
  • Goal 17 (Partnerships for the Goals)

Velesto's initiatives contribute to these goals through education programs, gender equality policies, job creation, emission reduction efforts, marine conservation, and collaborations with various stakeholders.

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • FTSE4Good – ESG rating score of 3.8
  • BURSA ESG 4-Star ESG rating
  • Sustainalytics Rated – ESG Risk Rating 17.8
  • 2023 CSR Initiative of the Year – Coral Restoration at Perhentian Island
  • MSOSH Awards 2023 – Gold Class 1 Award
  • Roc Oil HSE Excellence Appreciation Award
  • SHELL Malaysia Safety Awards – Silver Safety Award
  • EMEPMI STAR Excellence Award (Gold)
  • 2023 IADC SEAC Safety Award