Mubadala Energy's 2023 Sustainability Report Shows Significant Progress In GHG Emission Reductions

Mubadala Energy, based in Abu Dhabi, has reported substantial advancements in its Environmental Social and Governance (ESG) initiatives. The company achieved a two-thirds reduction in Scope 1 and 2 greenhouse gas emissions from 2022. Additionally, energy consumption across its operations nearly halved, demonstrating a strong commitment to decarbonisation.

In 2023, Mubadala Energy increased its gas weighting from 66% to 69%, aligning with its strategy to support the energy transition. Gas is less carbon-intensive and plays a crucial role in sustainable energy efforts. The company also made progress in new energy sectors like Carbon Capture Utilisation and Storage (CCUS) and geothermal energy.

The company's average emissions intensity dropped to 15.3 kgCO2e/boe due to a significant reduction in Scope 1 and 2 emissions last year. Mansoor Mohamed Al Hamed, Managing Director and CEO of Mubadala Energy, stated, "Mubadala Energy’s fifth annual sustainability report highlights our progress in putting sustainability at the heart of the business." He emphasised their achievements in reducing emissions and energy use while maintaining social impact and governance standards.

Al Hamed further noted their strategic focus on expanding gas as a bridge fuel for the energy transition. Last year marked their first major gas discovery in Indonesia, which will drive future sustainability efforts. This discovery is part of their plan to accelerate contributions to the energy transition.

Mubadala Energy advanced its new energies growth strategy significantly last year. Sumiyyah Mohammed, Vice President of Growth and New Energies at Mubadala Energy, commented on the importance of collaboration and partnerships in advancing CCUS and geothermal projects. She stated that working closely with stakeholders ensures they lead low-carbon solutions in their operational regions.

The report highlighted zero spills exceeding one barrel since inception within operated assets. The company aims to plant 700,000 mangroves in the UAE by 2030. A notable achievement was a 62% reduction in flared gas compared to 2022.

Social Impact and Governance

Mubadala Energy maintained a zero total recordable injury rate (TRIR) and lost-time injury rate (LTIR) across all operated assets. Over 24,000 individuals benefited from CSR projects in 2023, with more than one million positively impacted over the past decade. Female representation reached 27%, surpassing industry averages.

On governance, there were no incidents of non-compliance with laws or regulations recorded in 2023. Local suppliers accounted for about 72% of total spending that year. Independent members comprised 43% of the Board of Directors.

The company's Sustainability Report for 2023 followed Global Reporting Initiative (GRI) Standards and aligned with Task Force on Climate-Related Disclosures (TCFD) recommendations where applicable. It detailed impacts across operational, environmental, social contribution, human capital, and governance areas while assessing contributions towards key UN Sustainable Development Goals.

With inputs from WAM