Aramco publishes sustainability report for 2023

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Saudi Arabian Oil Co. (Saudi Aramco) published today, June 3, its 2023 sustainability report, which highlights the company's plans to further address emissions, while providing reliable and cost-effective energy solutions.

In 2023, the oil giant completed bottom-up assessments of its assets, to better identify and prioritize opportunities to meet its interim and 2050 climate ambitions. These assessments are supported by ongoing efforts including energy optimization and energy efficiency.

"Our 2035 upstream carbon intensity target of 15% reduction from a 2018 baseline remains unchanged. Adopting a market-based methodology, our target is now 7.7 kg CO2e/boe (using the 2018 baseline of 9.1 kg CO2e/boe). Under our previously reported location-based methodology, the target was 8.7 kg CO2e/boe (using the 2018 baseline of 10.2 kg CO2e/boe)," the company said.

It aspires to achieve net-zero Scope 1 and Scope 2 greenhouse gas emissions for its wholly-owned operated assets by 2050.

Performance of key metrics
Metrics	2023	2022	Status
Scope 1 emissions (million metric tons of CO2e)	54.4	55.7	Scope 1 emissions decreased by 2.4% compared to 2022 mainly due to lower hydrocarbon production during the year, and the use of more accurate emissions accounting methodologies for dynamic data at gas processing facilities
Scope 2 emissions (market-based) (million metric tons of CO2e)	13.0	10.3	Scope 2 emissions (market-based) increased 26.3% and Scope 2 emissions (location-based) increase 13.0% compared to the previous year primarily due to the inclusion of the Jazan Refinery (stabilized units) in the 2023 GHG emissions inventory
Scope 2 emissions (location-based) (million metric tons of CO2e)	18.2	16.1
Upstream carbon intensity (market-based) (kg CO2e/boe)	9.6	9.3	Upstream carbon intensity (market-based) increased 3.2% and upstream carbon intensity (location-based) increased 3.9% compared to 2022, largely due to higher gas production, processing and storage, and lower overall hydrocarbon production.
Upstream carbon intensity (location-based) (kg CO2e/boe)	10.7	10.3
Upstream methane emissions (metric tons of CH4)	27708	29193	Upstream methane emissions decreased by 5.1% and upstream methane intensity was maintained at 0.05% despite increase in natural gas production. This was enabled by the Company’s rigorous Leak Detection & Repair (LDAR) program, along with activities to decrease upstream flaring and enhance energy efficiency which reduce associated combustion related methane emissions.
Upstream methane intensity (%)	0.05	0.05
Flaring intensity (scf/boe)	5.64	4.60	Flaring intensity in 2023 was 5.64 scf/boe, up from 4.60,2 scf/boe in 2022, primarily due to increased maintenance and operational activities, as well as the inclusion of the Jazan Refinery (stabilized units) in the 2023 GHG emission inventory.
Flared gas (MMscf)	27506	23818
Energy intensity (thousand Btu/boe)	153.8	146.2	In 2023, Aramco’s energy intensity was higher than 2022 by 5.2%, this was due to higher energy demand at our operationally controlled affiliates and at Jazan Refinery (stabilized units). Additionally, the increase in gas production, processing and storage impacted the energy intensity, along with lower overall production
Energy consumption (MMBtu/hr)	85649	Metric not disclosed previously, therefore no prior year comparative

The company's strategic focus is on developing and deploying innovative solutions, optimizing operations, and adopting efficient project designs that aim to mitigate its emissions. It has allocated financial, technological, and human capital to invest at scale to deliver these plans and ambitions. Innovation and new ways of thinking are driven by all levels of Aramco.

In addition, Saudi Aramco's focus is on the management of greenhouse gas emissions from the company's wholly-owned operations that are within its direct control, it also support the energy transition through developing technologies that aim to lower-GHG emissions.

"Our investment in hydrogen, chemicals, and renewable energy sources and the increasing share of gas in our production are intended to provide lower emissions products and energy to our customers. We continue to invest in a number of product stewardship partnerships and technologies to reduce emissions, including research and development into lower emissions transport solutions," the company said in the report.

"Our $1.5 billion Sustainability Fund, which invests in breakthrough technologies and startups to find solutions to complex climate challenges, is evidence of our holistic approach and support to the energy transition," it noted.

Saudi Aramco - Sustainability Report for 2023

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