Sustainability

SUSTAINABILITY AND VELESTO ENERGY BERHAD

As a responsible rig operator that is part of the energy value chain, Velesto recognizes the role it has to play in contributing to making a better future. In support of the current energy transition, the Group is committed to taking a precautionary approach to lower our emissions, reduce our environmental footprint and minimize any harm that may arise from our business activities.

“Through our pursuit of value creation and profit-making, we have learned to tread lightly along the path of stewardship. In FY2022, we reaffirmed our commitment to reduce emissions by 2030 to support Malaysia’s sustainability aspirations and our strategic stakeholders’ net-zero aspirations.”

Megat Zariman Abdul Rahim
President Velesto Energy Berhad

OUR SUSTAINABILITY TARGET

Velesto Environment Target

To achieve a 10% reduction in emissions intensity measured by operating days, and a 30% reduction in revenue emissions intensity by 2023
ZERO major spills

OUR MATERIALITY

Environment

Energy & emission management
Climate change

Social

Health & Safety
Human Rights

Governance

Economic performance
Anti bribery & Corruption

Alignment with United Nations Sustainable Development Goals

The 17 Sustainable Development Goals (“SDGs”), otherwise known as the Global Goals adopted by the United Nations, represent a universal call to action towards the creation of a better shared future. Every organisation has a role to play in furthering the individual agendas of each SDG.
AT Velesto, UN SDGs are an important consideration for how we set our sustainability targets in line with stakeholders’ expectations. We strategically aligned our corporate efforts towards contributing directly to SDGs across our business units and activities.

2022 HIGHLIGHTS & ACHIEVEMENTS

FTSE4Good Bursa Malaysia Index
Constituent
(ESG 3-STAR RATING)

Winner of the MSWG-ASEAN Corporate Governance Award 2021 And MSOSH Gold Class 1 Award 2022

BEST HSE and Operational Performance HWU Gait VI for Workover and P&A campaign 2022

Reduction 15% in emissions intensity by operating days and Reduction 32% in revenue intensity

Reduction 2% Total Water Consumption Volume despite increase in business activity levels

Reduction 29%
Total Waste Generated
(from 194 tonnes in FY2021 to 137 tonnes in FY2022)

ZERO major spill

722 employees (73% Malaysians)

WOMEN Representation in Leadership Positions: 44% of Directors, 36% of Senior Management

RM331mil Procurement
Spend on
Local Suppliers
(56% Malaysian)

503 Participants
Trained at VELESTO
Instep Drilling Academy
(“VIDA”)

ZERO Lost Time Incident (“LTI”) for Velesto employee ONE LTI from contractor

ZERO Incidence of Customer Data Breaches

ZERO Incidence of Corruption

Find Out More About Our Sustainability Performance Data
ESG Index

SUSTAINABILITY LENSES

Velesto Coral Nursery

Safeguard the well-being of our oceans

Smart’s Cool Program

Enhancing quality education

VACP

Reinforce our dedication to ethical conduct

Business Partner Integrity

Fostering integrity in Velesto

Miri School Less Student

Striking balance in education for all

SUSTAINABILITY GOVERNANCE

Velesto has established a sustainability governance structure comprising the Board Risk Management Committee (“BRMC”), the Sustainability Management Committee (“SMC”) and the Sustainability Working Group (“SWG”), to facilitate communication between the highest decision-making bodies and working levels, with Velesto’s President tasked with the strategic management of ESG and climate change matters, and the operationalisation of the Group’s sustainability strategy as the chair of the Sustainability Management Committee (“SMC”).

Board Oversight

The sustainability agenda at Velesto is driven by the tone from the top. The Board of Directors acknowledges ultimate responsibility for all ESG matters, including setting the company’s sustainability strategies and priorities, while the Group’s ESG goals and targets fall under the purview of Velesto’s senior management.

The Board provides oversight on all environmental and climate-related matters such as energy and emissions management, biodiversity, resource consumption, pollution and waste management, as well as socio-economic issues like talent management, Occupational Safety and Health, labour and human rights practices, and local community impact, in addition to corporate governance, anti-corruption, regulatory compliance and supply chain management.

Click here to find out more

ANTI-CORRUPTION PLAN

VACP 2023 –2027 is a document that manifests Velesto management’s anti-corruption initiatives and efforts toward a corrupt free organisation. The development of VACP is in line with the

Malaysian Government’s commitment in National Anti-Corruption Plan (NACP) 2019 – 2023 to achieve the aspiration for Malaysia to be known as a developed country with integrity.

Click here to find out more