Climate Change Data

Environmental Metrics

ESG Focus Areas

• Health, Safety, and Environment (HSE)
• Sustainable Development
• Energy Transition
• Human Resources Development
• Social Responsibility

Environmental Achievements

• Improved gas recovery rate to 97%
• Implemented energy efficiency programs across operational sites
• Certified 4 E&P sites to ISO 50001 energy management system
• Launched GHG inventory system and MRV system for mitigation

Social Achievements

• Implemented COVID-19 prevention and protection measures for employees
• Continued to improve the quality of healthcare services in CMTs and CMSs
• Provided financial aid to employees and their families
• Launched the Human Resources Transformation (TRH) project

Governance Achievements

• Implemented an integrated information system (ERP)
• Improved HSE practices
• Established the Scientific and Technical Council of Sonatrach

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and its impact on health, safety, operations, and market conditions
• Significant drop in oil and gas prices (40% decrease compared to 2019)
• Unprecedented decline in global demand for petroleum products (9%)
• Reduced investment budget (50% decrease compared to 2019)

Mitigation Strategies

• Implemented COVID-19 prevention measures, maintained production, adapted production and marketing plans
• Reduced investments and costs, focused on reducing foreign currency expenses
• Prioritized expenses, revised investment and operating budgets (38% and 13% decrease respectively)
• Reduced foreign currency expenses by 40% compared to 2019 and 53% compared to 2020 forecasts

Supply Chain Management

Climate-Related Risks & Opportunities

Opportunities

• Development of renewable energy sources

Environmental Metrics

ESG Focus Areas

• Health, Safety, and Environment (HSE)
• Local Content and National Integration
• Social Responsibility
• Energy Transition

Environmental Achievements

• Slight decrease in flared gas compared to 2020; achieved a recovery rate of 96% for associated gases.
• Reduced hydrocarbon leaks on pipelines by 26% to 144 leaks in 2021.
• Launch of the second photovoltaic solar power plant with a capacity of 10 MW at Bir Rebaa North, reducing electricity costs and gas consumption.

Social Achievements

• Launched a vaccination campaign for SONATRACH staff and their dependents, administering over 110,000 doses.
• Signed a framework agreement with the National Employment Agency (ANEM) to improve transparency in recruitment.
• Implemented a new SONATRACH code of ethics and signed support contracts on ISO 26000 (social responsibility) and ISO 37001 (anti-corruption).

Governance Achievements

• Established a Company Ethics Committee to ensure compliance with ethical standards.
• Signed the “General Declaration of the Policy of Local Content and National Integration” to maximize the use of national goods and services.
• Implemented the new Procedure for Awarding Contracts E-025 (R1) to promote the national production tool.

Climate Goals & Targets

Environmental Challenges

• Slight increase in occupational accidents compared to 2020.
• COVID-19 pandemic impacted some activities.

Mitigation Strategies

• Implemented accident prevention systems at the workplace.
• Maintained vigilance and prevention systems for COVID-19; launched a vaccination campaign.
• Continued implementation of structuring projects to modernize management.

Supply Chain Management

Responsible Procurement

• General Declaration of the Policy of Local Content and National Integration.
• New Procedure for Awarding Contracts E-025 (R1).

Climate-Related Risks & Opportunities

Opportunities

• Development of renewable energy sources.

Reporting Standards

Frameworks Used: ISO 26000, ISO 37001

Environmental Metrics

ESG Focus Areas

• HSE and Sustainable Development
• Energy Transition
• Local Content and National Integration
• Social Responsibility

Environmental Achievements

• Reduced flared gas emissions by 5% compared to 2021 (120 million cm3)
• Launched construction of a second photovoltaic plant (BRN2) with a capacity of 10 MW
• Inaugurated a solar energy lab ("Solar Lab") to evaluate photovoltaic technologies and environmental data.
• Developed a roadmap for energy transition.

Social Achievements

• Signed nearly 1900 contracts with Algerian companies (80% of total contracts), valued at $3.5 billion, promoting local content and national integration.
• Implemented the Human Resources Transformation Project (TRH) to improve HR management processes.
• Adopted and updated a code of ethics.
• Implemented ISO 37001 (anti-bribery) and ISO 26000 (social responsibility) standards.
• Improved working conditions, site sanitation, and waste management.

Governance Achievements

• Implemented the SH One project for ERP system implementation.
• Sonatrach Data Center obtained "Uptime Tier 3 Design" certification.
• Restructured its national portfolio of holding companies from six to three.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the geopolitical upheaval and the Russia-Ukraine war.
• Global low oil stocks and high gas prices.

Mitigation Strategies

• Honored commitments to traditional clients by meeting their demand.
• Optimized refining tool to meet domestic fuel needs without imports.
• Accelerated development of gas discoveries (Hassi R’Mel, Ahnet, In Amenas).
• Maximized export turnover through upward review of contractual gas prices, spot market sales, and inter-market arbitrage.

Supply Chain Management

Responsible Procurement

• Prioritizing Algerian companies in procurement procedures.

Climate-Related Risks & Opportunities