Arab Press

بالشعب و للشعب
Friday, Mar 24, 2023

Saudi Aramco slashes supply chain emissions by 23% since 2015, chairman reveals

Saudi Aramco slashes supply chain emissions by 23% since 2015, chairman reveals

The Saudi Arabian Oil Co., also known as Saudi Aramco, has reduced material and logistics supply chain emissions by 23 percent since 2015, the chairman Yasir Al-Rumayyan revealed in an exclusive interview with Arab News.
Aramco’s iktva program is playing a key role in helping the oil giant achieve its long-term sustainability goals by making sure that its suppliers are evaluated and rewarded for their local environmental, social and governance contribution.

“Sustainability has always been part of the iktva model. We are embracing new technologies, harnessing the Circular Carbon Economy framework and empowering people to enhance our sustainability and reduce our environmental impact,” said the Aramco chairman.

“It’s worth noting that our material and logistics supply chain Scope 1 and 2 emissions have been reduced by 23 percent since 2015,” he added.

Scope 1 emissions refer to the direct emissions from owned or controlled sources, whereas Scope 2 emissions relate to the indirect emissions that come from the generation of electricity, steam, heating, and cooling used by a firm.

As well as having an impact on sustainability, iktva also plays a role in backing the growth and development of the local economy, Al-Rumayyan noted.

As of today, Aramco has a local supply chain comprising an estimated 1,000 local manufacturers and more than 2,000 service providers, the chairman disclosed.

“The program creates an ecosystem of integrated value chains that help businesses operate efficiently in Saudi Arabia. In addition, iktva rewards suppliers for establishing regional headquarters in Saudi Arabia,” he said.

With regards to efficiency, the chairman noted that it all goes back to investment in a skilled network of local suppliers which automatically leads to resilience when it comes to supply chain matters.

Both local and international suppliers are required to meet certain criteria in order to be able to work with the oil and gas giant. The criteria includes establishing local manufacturing facilities, recruiting Saudi employees, investing in research and training, among others.

“This steady progress towards supply-chain localization has not only benefited our company, but also the local and national economy. The impact is expected to continue through growth in exports and increased employment opportunities,” the chairman told Arab News.

Speaking of milestones, Al-Rumayyan emphasized that Aramco achieved a 63 percent iktva score, implying that 63 percent of the firm’s expenditures on suppliers has remained within the Kingdom.

Moreover, Aramco also recorded a 40 percent surge in suppliers’ spend on Research and Development in the Kingdom compared to 2021 levels.

Meanwhile, suppliers’ expenditure on small and medium enterprise development rose 120 percent between 2021 and 2022, thereby propelling supply chain evolution, he exposed.

“Since 2015, we have signed 182 agreements with a total value of $31 billion to build long term collaborative relationships with strategic suppliers, drive further investments, and promote local content,” Aramco chairman stressed.

The goal of those agreements, which pose as Corporate Purchase Agreements, is to provide suppliers with long-term visibility of demand; therefore, enabling them to forecast and project future growth and drive localization efforts accordingly, he explained.

The iktva program was launched with the vision of building a diverse and internationally competitive industrial base in Saudi Arabia. Looking at the bigger picture, this annual gathering is also designed to help the community further innovate, collaborate, and network.

In terms of investments, the event has managed to identify over 200 investment opportunities with an annual market share estimated to stand at $16 billion across 10 different sectors.

“We are continuously looking for companies who share our vision of sustainable growth, and to build win-win strategic partnerships. Together, we aim to stimulate innovation, diversify industry, and produce quality jobs for a growing Saudi population,” Al-Rumayyan concluded.

Related Articles

Arab Press
Donald Trump arrested – Twitter goes wild with doctored pictures
Credit Suisse's Scandalous History Resulted in an Obvious Collapse - It's time for regulators who fail to do their job to be held accountable and serve as an example by being behind bars.
Paris Rioting vs Macron anti democratic law
'Sexual Fantasy' Assignment At US School Outrages Parents
Credit Suisse to borrow $54 billion from Swiss central bank
Russian Hackers Preparing New Cyber Assault Against Ukraine
If this was in Tehran, Moscow or Hong Kong
A brief banking situation report
We are witnessing widespread bank fails and the president just gave a 5 min speech then walked off camera.
Donald Trump's asked by Tucker Carlson question on if the U.S. should support regime change in Russia?.
Elon Musk Is Planning To Build A Town In Texas For His Employees
The Silicon Valley Bank’s collapse effect is spreading around the world, affecting startup companies across the globe
Market Chaos as USDC Loses Peg to USD after $3.3 Billion Reserves Held by Silicon Valley Bank Closed.
Banking regulators close SVB, the largest bank failure since the financial crisis
Silicon Valley Bank: Struggles Threaten Tech Startup Ecosystem"
The unelected UK Prime Minister Rishi Sunak, an immigrant himself, defends new controversial crackdown on illegal migration
Man’s penis amputated by mistake after he’s wrongly diagnosed with a tumour
In a major snub to Downing Street's Silicon Valley dreams, UK chip giant Arm has dealt a serious blow to the government's economic strategy by opting for a US listing
It's the question on everyone's lips: could a four-day workweek be the future of employment?
Spain officials quit over trains that were too wide for tunnels...
Corruption and Influence Buying Uncovered in International Mainstream Media: Investigation Reveals Growing Disinformation Mercenaries
European MP Clare Daly condemns US attack on Nord Stream
Tucker Carlson called Trump a 'demonic force'
US Joins 15 NATO Nations in Largest Space Data Collection Initiative in History
White House: No ETs over the United States
Saray Street in Hatay-Antakya before and after the earthquake
U.S. Jet Shoots Down Flying Object Over Canada
Nord Stream terror attack: David Sacks breaks down Sy Hersh's story
Being a Tiktoker might be expensive…
Miracle: El Salvador Search and Rescue teams, with the support of Turkish teams, rescued a woman and a child from the rubble 150 hours after the earthquake
SpaceX, the private space exploration company, made a significant breakthrough in their mission to reach space.
China's top tech firms, including Alibaba, Tencent, Baidu, NetEase, and, are developing their own versions of Open AI's AI-powered chatbot, ChatGPT
This shocking picture, showing how terrible is the results of the earthquake in Turkey
President Joe Biden delivered the 2023 State of the Union Address , in order to help Americans that missed the 2022 speech, do not have internet, and suffer from short memory.
The desk of King Carlos Alberto of Sardinia has many secret compartments
Today's news from Britain - 9th February 2023
The five largest oil companies in the West generated combined profits of nearly $200 billion in 2022, which has led to increased calls for governments to impose tougher windfall taxes
2 earthquakes in Turkey killed over 2,300 people
Powerful Earthquake Strikes Turkey and Syria, Killing More Than 1,300 People.
Turkish photographer Ugur Gallenkus portrays two different worlds within a single image. Brilliant work
Charlie Munger, calls for a ban on cryptocurrencies in the US, following China's lead
Shell reports highest profits in 115 years
EU found a way to use frozen Russian funds
First generation unopened iPhone set to fetch more than $50,000 at auction.
WARNING GRAPHIC CONTENT - US Memphis Police murdering innocent Tyre Nichols
Almost 30% of professionals say they've tried ChatGPT at work
Interpol seeks woman who ran elaborate exam cheating scam in Singapore
What is ChatGPT?
Bill Gates is ‘very optimistic’ about the future: ‘Better to be born 20 years from now...than any time in the past’
Tesla reported record profits and record revenues for 2022