(MENAFN- The Arabian Post) Greenlogue /AP

Mubadala Energy achieved a 36.5 per cent drop in its Scope 1 and 2 greenhouse gas emissions in 2024, the company's newly published Sustainability Report reveals, underscoring the firm's accelerating role in the energy transition. The decline was complemented by a sharp 55 per cent fall in emissions intensity, from 15.57 to 6.95 tonnes CO2e per kilo barrel of oil equivalent. Emissions from flared gas fell by 12.8 per cent across its portfolio, and the company unveiled its first carbon pricing policy to guide future climate-related decisions.

These gains build on Mubadala Energy's longer-term decarbonisation trajectory. In 2023, the company reported a two-thirds reduction in Scope 1 and 2 emissions relative to 2022, while raising gas weighting in its fuel mix from 66 per cent to 69 per cent to lean more on lower-carbon energy sources.

Mansoor Mohamed Al Hamed, Managing Director and CEO, framed the 2024 results under the theme“People, Energy, Impact”, saying the company continues to embed sustainability in its operations. He noted that improvements in operational efficiency, decarbonisation initiatives, and stronger emissions discipline drove the progress.

On the environmental front, Mubadala Energy said it recycled 56 per cent of its total waste, reinforced flared gas reduction, and launched its first carbon pricing mechanism. The carbon pricing policy is intended to sharpen decision-making around investments and emissions trade-offs within the company, aligning internal costs with climate risks.

In the social domain, Mubadala maintained a zero-fatality record since the company's inception and reported an average of 64 training hours per employee. Its workforce now spans 32 nationalities, with above industry average female representation. On governance, the firm established an ESG Committee to define decarbonisation KPIs at leadership levels and upheld zero data breaches for a sixth year.

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Analysts point out that while the 36.5 per cent emissions reduction in 2024 is a striking headline, sustaining such year-on-year improvements is challenging in a sector where residual emissions become harder to eliminate. Mubadala Energy's move to introduce carbon pricing internally suggests it is seeking systemic discipline, but the true test lies in how aggressively that policy is applied across all projects and cost centres.

The company's role in new energy sectors also appears to be gaining traction. In 2024, Mubadala deepened its U. S. upstream gas and LNG presence via a stake in Kimmeridge's SoTex HoldCo, signalling a push to balance upstream capacity with lower-carbon transition investments. Mubadala Group's 2024 annual review further describes Project DeCarb - a collaboration with Solutions+ - to embed decarbonisation planning across UAE-based portfolio companies.

Still, questions linger about Scope 3 emissions, which represent the indirect emissions upstream or downstream of Mubadala's operations. The 2024 Sustainability Report notes alignment with evolving global reporting standards, but does not yet offer full Scope 3 coverage.

via Greenlogue

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