< PreviousLOCALISATION BOOSTING POST-COVID ECONOMIC GROWTH Localisation [(In-Country Value – ICV – in the UAE and Oman), (In-Kingdom Total Value Add – IKTVA – in Saudi Arabia)] is a powerful mechanism for ensuring more economic value remains in the nations from the contracts awarded. In short, the countries want to make sure that what they spend inside, stays inside, and helps stimulate the growth of the private sector and local economy 10 www.refi ningandpetrochemicalsme.com Cover Story Refi ning & Petrochemicals Middle East June 2021 10 www.refi ningandpetrochemicalsme.com Cover Story11 www.refi ningandpetrochemicalsme.com Cover Story Refi ning & Petrochemicals Middle East June 2021 11 www.refi ningandpetrochemicalsme.com Cover StoryICV/IKTVA represents an important element of the strategy that is rolled out in partnership with the private sector and in coordination with all relevant stakeholders. Ultimately, the success of this strategy will depend on the close collaboration and engagement between the public and private sectors. ADNOC’s ICV programme was launched in January 2018 to encourage private sector partnerships and opportunities resulting from the company’s 2030 smart growth strategy, catalyse socio-economic development, improve knowledge transfer and generate jobs for the UAE nationals. Saudi Aramco is committed to support IKTVA by working with key suppliers across the world to attract investments into the kingdom and enhance the development of a diverse, sustainable, and globally competitive energy sector in Saudi Arabia. For OQ’s Duqum Refi nery, ICV is an absolutely critical initiative for the Sultanate of Oman. It is the direction that the oil and gas sector of the nation have adopted in the past, and the rest of the country is now embracing it. It is a mechanism by which, they will retain lot of activities locally. And, the nation will be able to retain lot of industries locally. Stimulating the growth of the private sector and local economy ICV/IKTVA is an absolutely critical initiative for the GCC countries. It is the direction that the oil and gas sector has adopted in the past, and other sectors are now embracing it. It is a mechanism by which the industry will retain lot of activities locally. It will be able to retain lot of industries locally. “ICV is a powerful mechanism for ensuring more economic value remains in the UAE from the contracts we award. In short, we want to make sure that what we spend here, stays here, and helps stimulate the growth of the private sector and local economy,” said Dr. Sultan Ahmed Al Jaber, UAE minister of industry and advanced technology and ADNOC managing director and group CEO, delivering the opening remarks at ADNOC’s Private Sector and ICV Forum, which had over 3,000 virtual attendees, on 15 December 2020. “Today’s forum is all about reinforcing the critical symbiotic relationship between ADNOC and the private sector to realise the simple goal of creating even more economic value for the UAE.” ICV/IKTVA tries to identify the materials needed for various projects and, if it possible, those materials could be sourced from the local market, or if it not available today in the local market, then industries are created in order to supply those materials. ICV/IKTVA encourages investors not only to rely on the local market but also use the local market as a platform to start from, and look then around, and go beyond the “ICV is a powerful mechanism for ensuring more economic value remains in the UAE from the contracts we award. In short, we want to make sure that what we spend here, stays here, and helps stimulate the growth of the private sector and local economy.” Dr. Sultan Ahmed Al Jaber, minister of industry and advanced technology, UAE, and managing director and group CEO, ADNOC $20.7bn Launched in January 2018, ADNOC’s ICV programme has driven more than $20.7bn back into the UAE’s economy and created over 2,000 private-sector job opportunities for Emiratis. FACT BOX 12 Refi ning & Petrochemicals Middle East June 2021www.refi ningandpetrochemicalsme.com Cover Storyinternational partnerships and the establishing of companies through an Industrial Investment Program (IIP), which is linked to the development of Saudi Aramco’s business. Amin H. Nasser, Saudi Aramco’s president and chief executive offi cer, remarked, on the occasion: “Today’s announcement is a step change in Aramco’s pioneering IKTVA programme, which was launched in 2015. Despite the uncertainties surrounding the global economy, we have sustained our focus on our long-term goals to enable growth and development for a thriving ecosystem and a more diversifi ed Saudi economy.” “These new partnerships will contribute to advancing innovation, sustainability and enhance the scale of reliability in our business ecosystem and, in addition, benefi t companies operating in the kingdom’s vast energy and chemicals sector. These partnerships will also have a strong focus on new technologies, by maximising our investments in non-metallic materials and the circular carbon economy, as well as the development of talented Saudis in communities where we operate.” The new collaborations refl ect Saudi Aramco’s commitment to increasing the company’s reliability and operational effi ciency, as well as its commitment to further enhancing the kingdom’s commercial ecosystem and increasing employment and development opportunities for talented Saudis. Since IKTVA’s launch, Saudi Aramco’s local content index has increased from 35%, at the end of 2015, to 56%. Being future-ready is forged from the practice of operational excellence – by giving private organisations the opportunities they need to succeed in the business of the future. It enables a vibrant commercial ecosystem that will drive effi ciency and reliability of operations. Through eff ective governance, ICV/ IKTVA can create infrastructure, streamlined processes, and build capabilities that improve return on investment and leverage greater value for private sector companies, and thereby for the local economy. borders. Many of them have already started doing that – they start locally; then they start embarking on international projects and they use the local experience to sell their know-how. ICV/IKTVA programme is one of the key elements in the sustainability of various projects, as it will generate business opportunities that will contribute in the progress of the projects in the future. The ICV/IKTVA programme will also contribute in shaping and polishing the skills of local youth in various fields to empower them to grow in their career path to serve their country. Think local, act global Companies such as ADNOC, Saudi Aramco and OQ try to identify the materials needed for various projects and, if it is possible, those materials could be sourced from the local market, or if it is not available in the local market, then industries are created in order to supply those materials. ICV/IKTVA is and will be a strategic criteria for selecting partners locally in major global projects in the GCC energy industry. On 30 November 2020, Saudi Aramco announced the expansion of its fl agship programme to increase local content and boost domestic supply chains. It is a signifi cant milestone in the company’s IKTVA programme, which marked its fi fth anniversary on 1 December 2020. The expansion includes plans for new “We view localisation more of a value pack, especially when we consider the positive impact of the alignment between the public and private sectors on the development of local content and industrial investment.” Yousef Abdullah Al-Benyan, vice chairman and CEO, SABIC In December 2020, Saudi Aramco and Baker Hughes started construction on a non-metallics joint venture, based on a shareholders agreement signed in February 2020 during Aramco’s 5th In-Kingdom Total Value Add (IKTVA) Forum & Exhibition. In this fi le photo, (from left to right) Lorenzo Simonelli, CEO, Baker Hughes, Ahmad al Sa’adi, senior vice president for technical services, Saudi Aramco, and Wael Tashkandi, CEO, Novel, are at a ceremony held at the project site to commence the construction in Saudi Arabia. 13 Refi ning & Petrochemicals Middle East June 2021www.refi ningandpetrochemicalsme.com Cover StoryClose collaboration between public and private sectors ICV/IKTVA will open new doors of opportunity by enhancing the business environment for young locals, for entrepreneurs and for businesses, big and small. The impact it has on local community’s lives – that is what ICV/ IKTVA is. To highlight an example, more than 2,000 suppliers have already obtained ICV certifi cation in the UAE. The certifying bodies’ ICV evaluation formula takes account of goods manufactured in the UAE, the value of third-party spend in the UAE, a company’s investment in the UAE and its Emiratisation record, as well as the UAE- based expatriate employees’ contribution to the national economy. The evaluation also takes account of a supplier’s operating costs and depreciation cost, along with any exports created. When we look at Saudi Arabia, the seventh NUSANED Executive Council meeting was held virtually on 16 September 2020 to discuss ways to help stimulate local content, enable local investors, attract global investments, seek new opportunities for SMEs, and support commercially viable sectors for future growth. NUSANED is SABIC’s localisation initiative to support the realisation of Saudi Vision 2030. Yousef Abdullah Al-Benyan, SABIC vice chairman and CEO, observed on the occasion: “We view localisation more of a value pack, especially when we consider the positive impact of the alignment between the public and private sectors on the development of local content and industrial investment.” “That is why we at SABIC have initiated NUSANED to create the proper ecosystem for success through harnessing its capabilities in innovation and advanced technologies, as well as its distinguished “Today’s announcement is a step change in Aramco’s pioneering IKTVA programme, which was launched in 2015. Despite the uncertainties surrounding the global economy, we have sustained our focus on our long-term goals to enable growth and development for a thriving ecosystem and a more diversified Saudi economy.” Amin H. Nasser, president and chief executive offi cer, Saudi Aramco An exhibition focusing on the ICV opportunities offered by Duqm Refi nery was held at the Oman Convention & Exhibition Center during 30 September and 1 October 2018. Salim bin Nasser Al Aufi (centre), undersecretary, Ministry of Oil and Gas, Sultanate of Oman, displays a plaque commemorating the ICV exhibition organised by Duqm Refi nery. 14 Refi ning & Petrochemicals Middle East June 2021www.refi ningandpetrochemicalsme.com Cover Storyeconomy and created over 2,000 private- sector job opportunities for Emiratis. Over 4,200 suppliers are certifi ed in the programme, which has more than 20 certifying bodies. ADNOC’s downstream and industry operations are a critical engine of industrial growth in the UAE. The company’s operations provide competitive fuels and feedstocks to enable the nation’s industries and manufacturing supply chains. With its ambitious growth plans, ADNOC is proud to support the Ministry of Industry and Advanced Technology’s ‘Make it in Emirates’ strategy, creating new opportunities for companies to grow, develop and to thrive in the UAE. Refi ning & Petrochemicals Middle East ICV/IKTVA Forum 2021 Is ICV/IKTVA a powerful mechanism for ensuring more economic value remains in the nations from the contracts awarded? Will ICV/IKTVA help stimulate the growth of the private sector and local economy? How ICV/IKTVA will facilitate close collaboration and engagement between the public and private sectors? Refining & Petrochemicals Middle East will give novel insights on these and many more issues by engaging with industry leaders from operators, EPC contractors and technology/service providers, certifying bodies, and knowledge partners in its first ever edition of ICV/IKTVA Forum 2021. In part one of the forum, key operators will enlighten the Refi ning & Petrochemicals Middle East audience on how ICV/IKTVA acts as a powerful mechanism for ensuring that more economic value remains in the nations from the contracts awarded, open new doors of opportunity by enhancing the business environment for young locals, for entrepreneurs and for businesses. In part two, leading EPC contractors and technology/service providers will discuss how ICV/IKTVA helps stimulate the growth of the private sector and local economy, facilitates close collaboration between the public and private sectors, accelerates their businesses, improves return on investment, and leverages greater value. I part three of the forum, ICV/IKTVA certifying bodies, and knowledge partners will explain how ICV/IKTVA nurtures new local and global partnerships and business opportunities, and is a strategic criteria for selecting partners locally in major global projects in the GCC energy industry, as well as the methodology in obtaining ICV/ IKTVA certification. competencies to enable the ambitious goals of Vision 2030.” Creating job opportunities for locals “OQ is known for its talented and passionate employees. We take that serious and talent management is high on our agenda. We employ and develop local talents in our diff erent locations and we provide opportunities for cross-postings into diff erent locations to develop global leaders,” commented Ahmed Al Jahdhami, downstream CEO, OQ, in an interview given to Refi ning & Petrochemicals Middle East, in December 2020. As far as the UAE is concerned, ADNOC will drive over $43.6bn back into the UAE economy over the next fi ve years as it executes its capital expenditure (CAPEX) approved by Abu Dhabi’s Supreme Petroleum Council (SPC). ADNOC is doubling down on ICV to deliver greater value to the UAE. In 2020, ADNOC spent $1.36bn on more than 400 local Micro, Small, and Medium Enterprises (MSMEs) through the programme. ADNOC’s ICV programme is aimed at nurturing new local and international partnerships and business opportunities for the private sector, fostering socio- economic growth, and creating job opportunities for Emiratis. Launched in January 2018, the programme has driven more than $20.7bn back into the UAE’s “OQ is known for its talented and passionate employees. We take that serious and talent management is high on our agenda. We employ and develop local talents in our diff erent locations and we provide opportunities for cross-postings into diff erent locations to develop global leaders.” Ahmed Al Jahdhami, downstream CEO, OQ From 35% to 56% Since IKTVA’s launch, Saudi Aramco’s local content index has increased from 35%, at the end of 2015, to 56%. 15 Refi ning & Petrochemicals Middle East June 2021www.refi ningandpetrochemicalsme.com Cover StoryOne key industry question currently being asked is whether energy effi ciency of processing facilities are part of future sustainability plans and solutions? The answer is a defi nite and resounding yes. Improving the overall energy effi ciency means reducing the overall carbon emissions of the facility, which should be seen as the fi rst major step on the sustainability journey. Investing in such technologies and upgrades does not come cheaply – CAPEX can be important. However, with the introduction carbon taxes, good planning and effi cient budgeting, such investments can pay off on their own. It can be seen that the level of energy demand increases in complexity and can have low and high-energy effi ciency levels. Rationalising energy consumption The difference between energy efficient refineries and those that are less efficient represents a real opportunity to rationalise energy consumption. Inefficient refineries can reduce their own energy consumption by as much as 30% through more efficient technological, energy and organisational solutions. This can be illustrated as follows: A refi nery, which accounts for fi ve percent of the energy consumption of crude oil, has to work 16 days a year to meet its own energy requirements. Energy savings go right to the bottom line. Money that is not spent on energy is money that can be kept and put to other uses. Energy reductions lower operating costs and can reduce maintenance costs also. On the other hand, poor energy performance steals capital that could be spent on other business needs. Energy reductions promote emissions reductions. Emission reductions promote reduced compliance requirements. Reduced compliance requirements promote reduced fees, penalties and reporting, and reduce the amount spent on chemicals, environmental controls, etc. The current scenario sees: world population growth of 15% up since 2010; CO2 emissions of 40% up since 2010; and competition is more severe than ever. Financing, rebates and tax incentives are now readily available for plant and asset improvements. As energy effi ciency improves, costs are further reduced, and the company as a result more competitive. Price fl uctuations can be a signifi cant risk factor that can be reduced by implementing an energy management system to reduce energy consumption. Refi nery performance indicators and relationship to resource effi ciency (examples): production optimisation (+40% effi ciency); feedstock and energy consumption (-30%- 50%); environmental protection and safety (up to 50% OPEX of the refi nery); maintenance (repair time -25%); equipment utilisation/ loading effi ciency (+40%); effi ciency of organisation (+80%); and resource effi ciency – EBITDA/bbl +$2-$3 => $150mn-$200/year (10mn tonnes capacity). Energy efficiency in production Energy effi ciency in production always consists of three key steps. The fi rst is to address the ‘low-hanging fruit’, i.e., replacing light bulbs with energy-saving ones, putting in frequency and speed controllers for drives and so on. Example of a company – strategic energy saving goals include: (i) modernisation of technological equipment and introduction of energy-saving technologies; (ii) a highly effi cient system for managing electricity consumption; (iii) optimisation of generation and consumption of thermal energy; and (iv) development of own generation sources. This particular company also achieved more rational use of fuel and energy resources and as a result made substantial savings (>$100mn) through the introduction of innovations that reduced energy consumption. The second step is to optimise equipment that uses a lot of energy, such as compressors, pumps and air coolers. Optimisation comes down to two things – moving to condition-based maintenance and monitoring the condition of the asset in real-time to make sure the equipment is running well. The second is fi nding the most energy-effi cient operation modes for the equipment and using them specifi cally. Ekaterina Kalinenko is director, consulting, and Miro Cavkov is technical advisor at Euro Petroleum Consultants, which is a technical oil and gas consultancy with offi ces in Dubai, London, Moscow, Sofi a, and Kuala Lumpur, as well as organisers of leading conferences worldwide, including Energy & Sustainability Forum (ESF) – a new high-level forum designed to support the discussions and development of a sustainable energy future in which the downstream industry plays a leading role. ESF MENA is taking place during 24-26 October 2021 in UAE. For more in- formation, please visit esfmena.europetro.com. EURO PETROLEUM CONSULTANTS Energy consumption is one of the major cost items in any refi nery. (Image for illustration only) Energy effi ciency and sustainability in a crude oil refi nery Deeper refi ning is one of the ways companies can save resources by getting 1.5 times more petroleum products out of one tonne of oil. As the refi ning industry is among the most capital-, material-, and energy-intensive industries, it is clearly important to optimise refi nery operations and get the most out of current assets, comment Ekaterina Kalinenko and Miro Cavkov 16 Opinion Refi ning & Petrochemicals Middle East June 2021www.refi ningandpetrochemicalsme.comwith little, or no capital expenditure – priority activities (quick-wins) – 5%-10% reduction, no/minimum investment, 25%-30% reduction; (ii) quick-hit interventions generate revenues quickly without capital investment within 3-4 months; (iii) improvements with no/minimum capital investment yield signifi cant benefi ts within 6-12 months; (iv) improvements are based on implementation of best practices, resulting in sustained savings year after year; (v) in value terms, the benefi ts are valued at tens of millions of dollars per year – which is highly signifi cant; and (vi) starting from the main refi nery heat source the tube furnaces/fi red heaters, which we know are very sensitive installations in terms of effi ciency tuning. There is room for improvement in each fi red heater in order to get the maximum effi ciency from the radiant and convection sections inside. It is not so straightforward like if you need more heat, just to increase the fuel supply to the burners and then the problem to be solved. Sometimes, it could be a temporary solution, but in terms of environmental eff ect and energy cost it is not reliable in long-term, also it is strictly independent case in each facility. As we can see, energy effi ciency of processing facilities will play an important part of any future sustainability plans and solutions. The simple fact remains that improving the overall energy effi ciency means reducing the overall carbon emissions of the facility. And, this should be seen as the fi rst major step to sustainability. (This is the fi rst part of an opinion piece on energy effi ciency and sustainability. The second part of this comment will be published in the July 2021 issue of Refi ning & Petrochemicals Middle East.) For pumps, we fi nd the point of maximum effi ciency based on performance, energy effi ciency and equipment exhaustion. The task of fi nding the optimum point for a compressor is more complicated, usually involving a survey and a model of the equipment, from which the optimum mode is calculated. Refi nery power engineers are usually familiar with the fi rst two steps, and the third step is a complete process energy monitoring system. In Europe and the USA, these systems are an integral part of any production plant, and practically every plant has an energy manager reporting to the general director, whose ‘sole’ task is energy effi ciency, as opposed to our plants’ chief power engineers, who have the main KPI of uninterrupted power supply. The task of this system is very simple – to create energy metrics for all types of equipment, processes, products to create current energy consumption standards for all of the above and monitor energy consumption to comply with these consumption standards. Initial step is to retrofi t the necessary metering devices and to collect information on the energy consumption of all equipment, storing it in a ‘data lake’. The second step is to implement an energy management system that works on the basis of contextualised information from technological processes. All production processes are decomposed into a hierarchical structure that contains all equipment, and based on this the actual consumption rates for each piece of equipment are calculated, and deviations from these rates are analysed, and the system issues alerts and supports solutions to eliminate any deviations. The importance of accurate material and heat balances, for this system to work properly, cannot be overstated – you cannot manage what you cannot measure. By reconciling the balances directly, we will inevitably get errors related to the accuracy of the instrumentation, faulty instruments, losses and sampling. Simulation on a mathematical model calculates how unbalanced the fl ows are. In terms of numbers, energy savings from the waste heat recovery process are the most signifi cant, with energy consumption 92.37% lower than for the normal rectifi cation process and 52.5% lower than for the heat pump rectifi cation process. The waste heat recovery process has the lowest economic costs, 87.06% lower than the normal rectifi cation process, and 44.78% lower than the heat pump rectifi cation process. Saving resources Possible ways to optimise raw material consumption are: increasing conversion rate per tonne of raw material processed; increasing productivity of process units (higher yields of key products); minimisation and loss control of raw materials and products; reducing fuel and energy consumption; and optimisation of process confi guration. Energy consumption is one of the major cost items in any refi nery. In order to maximise the benefi ts of improving company-wide effi ciency, a signifi cant number of small and medium-scale plant-specifi c programmes usually need to be implemented. With relatively little investment, a downstream refi ner can potentially save tens of millions of dollars per year by reducing energy overhead by 50%-70% and be on par with its competitors in the upper quartile. We would also add a point regarding environmental protection. In this case, for companies, this factor becomes more and more signifi cant every year in terms of costs, product quality, production safety, and the overall reputation of the company. For example, for a large company this cost item is becoming increasingly signifi cant due to increasing adverse environmental impact and is comparable to capital expenditures in the refi ning sector, or 50% of the refi ning operating costs, so improving environmental policy together with resource and energy conservation can have a signifi cant positive eff ect on fi nancial health. The effi ciency improvement programmes off er the following benefi ts to certain refi neries: (i) effi ciency improvements of up to 30%-40% Industrial energy use and carbon emissions reduction: A UK Perspective. (Source: WIREs Energy and Environ- ment, 2016; Paul W. Griffi n, P. Hammond and Jonathan B.) % 100 80 60 40 20 0 Energy Saving Potential Existing energy use Economic potential Technical potential Thermodynamic potential 17Opinion Refi ning & Petrochemicals Middle East June 2021www.refi ningandpetrochemicalsme.com18 Refi ning & Petrochemicals Middle East June 2021www.refi ningandpetrochemicalsme.com Sustainability In Saudi Arabia, the Circular Carbon Economy (CCE) National Program is a holistic approach to sustainability in the kingdom that addresses emissions through innovations such as the cap- ture and conversion of carbon into usable raw material. SABIC is committed to supporting this through numerous initiatives The role of the chemical industry in addressing climate change Climate change is one of the greatest issues faced across many industries – including the global chemicals industry. The key challenge is related to managing the greenhouse gas emissions that result from industrial processes. In both Europe and America, green poli- cies are at the forefront of the social and political agenda. For example, the Europe- an Commission adopted the EU Chemicals Strategy for Sustainability, which is the fi rst step towards a zero pollution ambition for a toxic-free environment announced in the European Green Deal. SABIC is collaborating with the Saudi government to achieve the targets out- lined in the Paris Agreement and are committed to reducing its own green- house-gas emissions. The company has set a target to reduce the intensity of its energy and greenhouse gas emissions by 25% from 2010 to 2025. At our Riyadh headquarters, carbon offsets accounted for nearly 44,000 met- ric tonnes of greenhouse gas emission in- tensity before the company achieved the PAS 2060 carbon neutrality specification standard (established by the British Stan- dards Institute). In Jubail, SABIC has developed the world’s largest CO2 purification and liq- uefaction plant through the company af- filiate – UNITED. This has the capacity to purify and re-use 500,000 metric tonnes of CO2 annually as feedstock for indus- trial processes. SABIC is integrating renewable en- ergy and sustainability across its opera- tions around the world. In Saudi Arabia, the company recently set a new target to install four gigawatts of renewable en- ergy by 2025 and 12 gigawatts by 2030. In Cartagena, Spain, SABIC is developing a 100MW solar plant, which is set to be- come the world’s fi rst large-scale chemi- cal production site to be run entirely on “Climate change is one of the major challenges of our time. Delivering a lasting and positive impact will require the public and private sector to work closely together, harnessing the full potential of their innovative and collaborative capabilities.” Yousef Al-Benyan, vice chairman and CEO, SABIC19 Refi ning & Petrochemicals Middle East June 2021www.refi ningandpetrochemicalsme.com Sustainability The 2020 Sustainability Report is a transparent in- sight into SABIC’s approach to delivering ‘Chemistry that Matters’ to customers, suppliers, governments, NGOs, and communities all over the world. renewable power by 2024. In India, the company has also installed solar panels that helped reduce CO2 emissions by 200 tonnes at its Baroda and Rayong sites. Saudi Aramco and the Institute of Energy Economics (IEEJ), Japan, in partnership with SABIC, dispatched 40 tonnes of high- grade blue ammonia for use in zero-carbon power generation. In April this year, SABIC has released its 2020 Sustainability Report, which re- fl ects on the successes of its sustainability journey and the profound changes arising from a challenging yet remarkable year. Now in its 10th year and entitled ‘Thriving Responsibly’, the report outlines how the company’s actions are advancing the circu- lar economy; addressing climate change; and embedding environmental, social and governance (ESG) principles into every as- pect of the business. Centring ESG is an important piece of SABIC’s sustainability strategy and jour- ney of transformation and this year, SAB- IC created a new ESG Steering Committee, led by SABIC’s CFO. By embedding ESG inclusively and holistically, SABIC can weigh ESG factors alongside fi nancial con- siderations in its decisions. SABIC’s eff orts to support the Covid-19 response also feature strongly in this year’s report. During 2020, it contributed over $33.4mn in monetary and in-kind dona- tions, delivered across 212 activities and reaching more than 35 million people in fi ve continents. Yousef Abdullah Al-Benyan, vice chair- man and CEO, SABIC, said: “The year in review has proven that there are very real economic challenges for organisa- tions that cannot, or will not adapt to the changing world. Disruption triggered by the Covid-19 pandemic accelerated many of the trends that forward-looking com- panies had previously identified. Against this backdrop of definitive change, SABIC is well-positioned to thrive. Our long- standing ESG commitments have already helped strengthen our business resil- iency, bringing enhanced operational ef- ficiencies and timely investment in new low-carbon technologies.” In the decade since the fi rst sustainabili- ty report was published, SABIC has record- ed impressive results in relation to climate, energy and resource effi ciency commit- ments. Compared to 2010 baselines, in 2020 it secured important reductions in fl aring emissions (56%), material loss in- tensity (46.3%), green-house gas intensity (15.5%), and energy intensity (10.5%). In 2020, SABIC also deepened its com- mitment to the circular economy, expand- ing the TRUCIRCLE portfolio of products and services to facilitate cross-value chain eff orts working to close the loop on used plastic for good. Bob Maughon, executive vice presi- dent, sustainability, technology and in- novation, SABIC, said: “In view of the commitment on a path to carbon neu- trality, Science Based Targets initiative (SBTi) target-setting is under review. Our success toward this ambition is enabled by the willingness to test new technology solutions, business models, and partner- ships, and the integration of ESG princi- ples into every part of our business, func- tions, and markets.” “SABIC has committed to addressing the industry challenges of carbon neutrality and the circular economy through embracing the need for innovation, external collaboration, and new value chain partnership.” Dr. Bob Maughon, executive vice president, sustainability, technology and innovation, SABICNext >