This article first appeared in The Edge Malaysia Weekly on November 27, 2023 - December 3, 2023

Navigating the decarbonisation journey as an oil and gas company is tough due to the nature of the business, which is carbon-intensive. Energy services company Deleum Bhd, however, has invested efforts in this area. It bagged the gold award under the energy category at The Edge Malaysia ESG Awards 2023.

Its group CEO Ramanrao Abdullah says the company’s achievement is the result of a dedicated and passionate team, adding that its employees are on board and committed to Deleum’s ESG journey.

“This collaborative spirit emphasised the power of teamwork and a shared vision, driving us towards our goals. To reinforce our commitment, we have established a dedicated sub-board focusing on sustainability, ensuring it remains a focused agenda for Deleum,” says Ramanrao.

The company’s main challenge in maintaining its ESG performance over the past years was data collection, which was initially focused on compliance. Ramanrao says it learnt that generating comprehensive ESG data demanded unwavering consistency and adaptability. Therefore, it initiated a structured process where it continuously monitors data collection.

Despite the complexity, he says it remains open to change, ensuring its data collection is both compliant and practical, aligning with its sustainability commitment and targets. “We identified shortcomings and refined our methods, fostering transparency in data reporting. One of the challenging steps was setting a baseline for carbon emissions and we continuously strive to enhance our data collection process to prevent any greenwashing,” he says.

“Moving forward, to validate our efforts, we are engaging an independent verifier to provide an assurance statement, which is key to ensuring data credibility. At Deleum, we are distinct in our approach, embracing change and recognising the necessity for continuous improvement for excellency. We believe in a just transition, where a thriving economy and positive economic development can coexist harmoniously with a cleaner environment.”

Ramanrao says Deleum is proud of its FTSE4Good rating, especially in the social and governance categories. The scores reflect its dedication to global ESG standards and sustainable practices, he says.

To reflect the company’s commitment, he says it implemented robust policies for sustainability, and is dedicated to achieving carbon neutrality by 2050 by setting emission reduction targets.

“Our social and governance initiatives include partnering and engaging with government agencies, non-governmental organisations, local communities and educational institutions. Through these collaborations, we have sponsored scholarships, provided assistance and organised community clean-up drives, among others, to drive responsibility stewardship.”

In the coming years, Ramanrao says the company is seeking stakeholder support to recognise the presence of the global oil and gas industry. To address the worldwide challenges posed by the “energy trilemma” and meet the objectives of the Paris Agreement, substantial changes are imperative for industry sustainability, he adds.

“Decarbonisation is crucial, alongside short- to medium-term solutions for energy security and affordability. Long-term transformative actions need continued engagement from all stakeholders,” he says.

“Policymakers must establish stable, consistent policies, enabling businesses to thrive in this evolving energy landscape. Businesses face challenges when policies fluctuate, affecting their operations. Encouraging policymakers to match their words with actions will further enhance our collective progress.”

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