Mubadala Energy Accelerates Decarbonization in 2023
66% decrease in greenhouse gas emissions from Scope 1 and 2, with a commitment to establish 700,000 mangroves in the UAE by 2030.
Mubadala Energy, an international energy company based in Abu Dhabi, has made considerable strides in Environmental, Social, and Governance (ESG) initiatives. One of the key achievements includes a substantial two-thirds reduction in Scope 1 and 2 greenhouse gas (GHG) emissions since 2022. In its 2023 report, the company also revealed a nearly 50% reduction in energy consumption across its operated portfolio, signifying an aggressive push towards decarbonizing its operations.
Gas as a Key Element of Energy Transition
Aligning with its strategic focus on the energy transition, Mubadala Energy increased the share of gas in its energy portfolio from 66% in 2022 to 69% in 2023. As a lower-carbon fuel, gas is critical in facilitating a sustainable energy shift. The company also made progress in new energy sectors, such as Carbon Capture Utilization and Storage (CCUS) and geothermal energy. The 2023 report highlights a 66% reduction in Scope 1 and 2 GHG emissions, lowering the company’s average emissions intensity to 15.3 kgCO2e/boe.
Commenting on this year’s report, Mansoor Mohamed Al Hamed, Managing Director and CEO at Mubadala Energy, said; “Mubadala Energy’s fifth annual sustainability report highlights our progress in putting sustainability at the heart of the business. We’re proud to have made a significant reduction in both emissions and energy consumption, paired with real progress across our social impact and governance. We continue to deliver operational excellence and uphold our impressive safety record while investing in our people and the communities we serve.”
“With a clear strategy to proactively contribute to the energy transition by expanding our position in gas as a key bridge fuel, last year we also announced the first of our game-changing gas discoveries in Indonesia. This new growth platform will see sustainability continue to be at heart of our plans for the future as we accelerate our contribution to the energy transition,” he added.
Environmental Milestones
In terms of environmental performance, the company reported several key achievements:
> Zero significant oil spills: No spills greater than one barrel were recorded across operated assets.
> Mangrove planting initiative: Mubadala Energy has committed to planting 700,000 mangroves in the UAE by 2030.
> Gas flaring reduction: A 62% decrease in flared gas was achieved compared to 2022 levels in operated assets.
Last year also saw Mubadala Energy make significant strides in its new energies’ growth strategy. Commenting on this, Sumiyyah Mohammed, Vice President, Growth and New Energies at Mubadala Energy noted: “Collaboration and partnerships have been key to advancing our progress in new energy arms such as CCUS and geothermal energy; we continue to work closely with our stakeholders across the industry to ensure we are at the forefront of these and other low carbon solutions in the region where we do business.”
Social Impact and Workforce Diversity
Mubadala Energy has also excelled in social contributions:
> Workplace safety: The company maintained a zero total recordable injury rate (TRIR) and zero lost-time injury rate (LTIR) across all operated assets.
> Community impact: Over 24,000 individuals benefited from corporate social responsibility (CSR) projects in 2023, contributing to over a million positive impacts in the last decade.
> Diversity: Female representation within the company reached 27%, significantly surpassing the industry average.
Governance Achievements
The company’s governance structure remains robust, with notable highlights including:
> Regulatory compliance: No incidents of non-compliance with laws and regulations were reported in 2023.
> Support for local suppliers: Local suppliers accounted for 72% of the company’s total spending in 2023.
> Board composition: Independent members make up 43% of Mubadala Energy’s Board of Directors.
Commitment to Global Standards and Goals
The 2023 Sustainability Report was prepared under the Global Reporting Initiative (GRI) Standards and aligned with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), where applicable. The report offers a comprehensive overview of Mubadala Energy’s environmental, social, and governance performance, along with its contributions to the United Nations Sustainable Development Goals (SDGs).
To explore the full report, please visit the link here.
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