Climate Change Data

Environmental Metrics

ESG Focus Areas

• Health, Safety, and Environment (HSE)
• Community Development
• Corporate Governance
• Talent Development
• Quality Assurance

Environmental Achievements

• Reinforced HSE compliance in operations through training, inspections, and audits; implemented oil spill control mechanisms; conducted energy surveys, water testing, and waste management.

Social Achievements

• Supported sustainable social development activities nationwide by partnering with reputable charitable organizations in healthcare, education, community building, and environment; extended support worth Rs. 86 Million to these causes.
• Launched PSO Impact program under CSR framework

Governance Achievements

• Strengthened Governance, institutionalized corporate reforms and controls to ensure transparency; implemented a Code of Conduct to maintain decorum and ensure a cohesive environment for employee success; strengthened review and monitoring mechanisms for business performance evaluation and improvement.

Climate Goals & Targets

Environmental Challenges

• Outstanding receivables of Rs. 233 billion from the power sector, PIA, and SNGPL putting pressure on liquidity; HSD quality challenges due to price arbitrage, incentivization, delays in LPG retail outlet approvals, and margin erosion; industry faces challenges related to fuel quality and supply chain efficiency.

Mitigation Strategies

• Working with the Ministry of Water & Power, NEPRA, and PIA for timely payment realization; taking steps to recover Rs. 14 billion from OMCs/IFEM, CNG, and GOP; devising plans for an efficient and cost-effective supply chain.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Successfully rehabilitated 4 thousand tons of existing storages; 104 thousand tons are being rehabilitated and 90 thousand tons of new storages are under construction.

Social Achievements

• Donated Rs. 78.5 million on account of CSR initiatives, including Rs. 39.6 million for flood relief, Rs. 33 million for community building, Rs. 3.7 million for education, and Rs. 2.2 million for healthcare.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• High inflation, slowing GDP growth, and Pak Rupee devaluation; Significant decline in the consumption of petroleum products due to flash floods, economic slowdown, and reduced purchasing power; Circular debt crisis, with receivables from SNGPL increasing by 90%; Increase in the company's average borrowing by 180%.

Mitigation Strategies

• Exploring options with the government to reduce the burden on PSO's financials; Continued investment in infrastructure development for capacity enhancement and reliability; Streamlining operational activities with cutting-edge technology and a digital transformation strategy.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Flash floods

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: KPMG Taseer Hadi & Co. Chartered Accountants

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Community Investment
• Infrastructure Development
• Digital Transformation

Environmental Achievements

• Rehabilitated 42 thousand tons of existing storage
• 90 thousand tons of new storages under construction

Social Achievements

• Donated Rs. 316 million through various CSR initiatives (Rs. 196 million for community building and social development, Rs. 70 million for improved access to education, and Rs. 48 million for healthcare, well-being, and environmental initiatives)

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• High inflation and regressed growth in Pakistan's economy
• Significant decline in white oil sales (19.6% decline, 17.1% dip in motor gasoline, and 24.9% dip in diesel)
• Decline in black oil demand (32.1% decline)
• Circular debt and increased receivables from SNGPL (65% increase, 157% increase in PSO's average borrowings, and 995 basis points increase in finance cost)

Mitigation Strategies

• Discussions with the government to resolve circular debt issues
• Investment in infrastructure development to increase supply chain robustness (addition of 22 retail outlets and integration/automation of 3 terminals)
• Digital transformation journey for end-to-end digitization of the supply chain (integration of 700 retail outlets with the central command and control system)

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed