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RAM Sustainability assigns Silver3p Project Sustainability Rating to Sarawak Petchem

Published on 29 Apr 2022.

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RAM Sustainability has assigned a Silver3p (S3p) Project Sustainability Rating to Sarawak Petchem Sdn Bhd (the Project Company).

Sarawak Petchem is jointly owned by Permodalan Satok Berhad and the Sarawak Economic Development Corporation. The Project Company was established to develop, construct and operate the first methanol plant in Bintulu, Sarawak, aimed at retaining the value chain of the state’s oil and gas downstream activities. Sarawak Petchem is also expected to create economic and societal positive impacts through technology transfers, capacity training, product development and collaborations with local vendors through its proposed Vendor Development Programme that will link them to well-established global players in the industry. Currently under construction, the plant is expected to commence operations only in 1Q 2024. This limits the visibility of some of the Project Company’s environmental, social and governance (ESG) initiatives.

The manufacture of methanol, which uses natural gas as a feedstock and fuel source, emits greenhouse gases and produces waste and effluent. Sarawak Petchem however has established a Health, Safety and Environmental (HSE) Policy to limit its emissions and waste and address occupational health and safety risks. The Project Company is also developing a comprehensive HSE Management System Framework, which includes training and development principles.  

As most of the Project Company’s key management personnel have worked with the Petronas group of companies, and are committed to sustainable practices, we expect Sarawak Petchem to adopt the best available technologies, techniques and standards that are primarily referenced from Petronas. Notably, the design of the methanol plant will incorporate environmental efficiency aspects such as the 3Rs (Recovery, Recycle, Reduce), an energy loss management system and industrial effluent treatment system. Sarawak Petchem also abides by specific methanol quality standards, as requested by its offtake customer – Petronas Chemicals (Labuan) Limited.

RAM Sustainability Sdn Bhd is a provider of sustainability services and ESG analytics. Incorporated on 31 May 2000, RAM Sustainability is a wholly owned subsidiary of RAM Holdings Berhad. RAM Sustainability is the first ASEAN-based provider of sustainability ratings and second opinions and has the distinction of being the first Registered Observer of the International Capital Market Associations’ (ICMA) Green Bond Principles (GBP), Social Bond Principles (SBP) and Sustainability Bond Guidelines in ASEAN. It is a member of ICMA’s Advisory Council to the GBP and SBP Executive Committee for a third consecutive term. On 12 August 2020, RAM Sustainability became an Approved Verifier for the certification of climate bonds under the Climate Bonds Standard & Certification Scheme after having been awarded the status by the Climate Bonds Standards Board. For further details, please refer to https://www.ram.com.my/sustainability. 

 

Analytical contact
Jean Sau
(603) 3385 2574
jeannie@ram.com.my
 



Publication Date Published Category
Sarawak Petchem Sdn Bhd Project Sustainability Rating Report 29-Apr-2022 Sustainability Ratings View PDF

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