Adnoc Distribution targets a 25 per cent reduction in Scope 1 and 2 emissions intensity by 2030
Adnoc Distribution has set an ambitious Decarbonisation Roadmap to reduce its greenhouse gas (GHG) emissions intensity by 25 per cent by 2030, aligning with the UAE’s Net Zero by 2050 goal.
As outlined in its 2024 ESG Report, the company has converted 100 per cent of its UAE-based heavy vehicle fleet to run on B20 biofuels, resulting in a reduction of 1,468 tonnes of CO2 equivalent annually.
Real-time fleet monitoring and optimisation systems have also been implemented to enhance fuel efficiency. Adnoc is also exploring the integration of electric and hydrogen-powered vehicles into its logistics and delivery operations.
Adopting renewable energy sources, Adnoc has accelerated its transition to solar PV panels at 31 service stations in 2024.
The company has also launched an AI-driven energy management initiative to improve operational efficiency at service stations. Additionally, Adnoc has invested in LED lighting retrofits, high-efficiency HVAC systems, and advanced building insulation and design to optimise energy consumption.
Adnoc has converted an AED5.5 billion ($1.4 billion) term loan into a Sustainability-Linked Loan (SLL), tied to two KPIs: reduction in GHG emissions intensity per operational site and increase in renewable energy usage for internal consumption. The company met both targets for 2024, demonstrating alignment of environmental objectives with financial performance.
Adnoc Distribution has launched a Customer Neutralisation Project, focusing on EV charging, which offset more than 1,800 tCO2e and benefitted over 13,000 EV customers.
The company has implemented stormwater management systems, permeable pavements, oil-water separators, regular infrastructure inspections, elevated fuel tanks, waterproof barriers, flood-proofing measures, and cooling stations to protect the health and safety of outdoor workers.
Adnoc Distribution has improved its emissions intensity between 2023 and 2024, reducing it from 27.3 to 26.2 tCO2e per million AED of gross profit. The company also exceeded its 2024 emissions reduction target of 189,289 tCO2e.