ESG

ESG Excellence: Advancing Sustainability, Governance, and Social Impact Throughout the Year

Advanced commitment to achieving ESG excellence is firmly anchored in Advanced values. The balance among, environmental protection, social responsibility and economic performance is an integral part of Advanced culture and an embedded part of Advanced business strategies.

At Advanced, we strive to create more value for our stakeholders, including our commitment and contribution to the initiatives related to Environment, Social, and Governance. We aim to innovate new initiatives for sustainable development while shaping our business responsibly and increasing our economic success. Our ESG framework reflects plans and performance to meet and exceed stakeholders' expectations.

Advanced ESG Report for 2021 marks the inception of our journey towards ESG excellence. Published in 2022, this report reflects Advanced's proactive stance on ESG investment and its commitment to mitigating globally identified ESG risks. The maturity of Advanced's ESG approach continued to evolve in the 2022 ESG report, published in 2023. Advanced is dedicated to further advancing its journey of positive ESG contribution, striving to enhance its positive impact while minimizing negative effects across all aspects of ESG.

LONG TERM
ESG OBJECTIVES

Using 2017 as the baseline year for sustainability improvements, in 2018 Advanced launched its Sustainability Program. This marked the start of a journey towards lowering environmental impacts and enhancing efficiency. Advanced appreciates that it will take time to develop and execute various elements of this program. Therefore, the company set 2030 as its target measurement year. 2030 is also a critical milestone for reducing CO2 emissions. By 2030, the company aims to reduce GHG emissions and energy intensity by 13%; reduce water intensity by 26%; and improve material effectiveness by 26%.

The company also deepened its efforts in Corporate Social Responsibility (CSR) and joined a number of initiatives.

Advanced’s long-term strategy is one of continued growth in the chemicals sector and it is aiming for multiples of our current size. The company also wants to be recognized as a leader in operational and manufacturing excellence in the petrochemical sector, while complying with, and improving performance across, all aspects of ESG.

In support of its growth strategy, Advanced is currently executing its multi-billion-dollar Propane Dehydrogenation; Polypropylene & Isopropanol (PDH-PP-IPA) project in Jubail-2, Saudi Arabia, with approximately twice its current size, which is expected to come on stream by 2024. This project aims to produce various specialized PP product grades which will provide an edge for Advanced to penetrate value added PP segments.

Further to this, Advanced also obtained feedstock allocation from the Ministry of Energy in 2023 to set up an integrated world scale cracker complex. This project will also focus on producing various downstream products for conversion and for local industry. It will serve to enhance and boost local consumption and employment.

	Baseline 2017	2030 Plan
SHE Index*	0	0
Incident rate direct hire*	0	0
Incident rate contractors*	0	0
GHG tCO₂e/t product	1.37	1.19
Energy GJ/t product	23.95	20.84
Water Withdrawal tH₂O/t product	1.18	0.87
Material effectiveness kG/t product	11.55	8.55

*Refer to Appendix & Glossary of Formulas Published in 2022 ESG Report

ESG

FRAMEWORK

Advanced Petrochemical’s ESG and Sustainability Framework summarizes what sustainability means for the company by identifying the key areas that need to be addressed and balanced. The Framework revolves around Advanced Petrochemicals values:

Advanced ESG framework is aligned with many national and international frameworks such as the UNGC, UNSDGs, and the Saudi Vision 2030. The framework has been developed based on ESG materiality assessment with the engagement of Stakeholders. The materiality assessment covered environmental, social, governance, and economic issues that range from broad global and national issues and Initiatives such as climate change and commitment to carbon footprint reduction, supporting the Sustainable Development Goals (SDGs) of the United Nations, moving to contribute and support national 2030 Saudi Vision initiatives and programs.

Advanced is moving toward exploring further initiatives and projects to contribute to enhancing the maturity level of ESG performance in the years to come.