OVERVIEW
To be the preferred provider of offshore production and support services to our clients
Bumi Armada is fully committed to our sustainability aspirations both in terms of our daily operations, as well as from a strategic viewpoint.
Moving forward, our sustainability strategies, which include gas as a transitional energy source, will drive new infrastructure projects. We are venturing into carbon capture injection and storage projects.
This will accelerate our transition towards Net Zero carbon emissions by 2050 or earlier.
MISSION
In collaboration with our stakeholders, and in a responsible way, we are committed to reduce our environmental footprint, to support our local communities and to promote social sustainability awareness wherever we operate around the world.
VISION
In the global regions we actively operate, we will implement practical sustainable solutions which can create a difference to the environment and society.
At Bumi Armada, the commitment to integrate sustainability into daily operations stems from our vision “to be the preferred provider of offshore production and support services to our clients”. With this in mind, we have developed our Sustainability Philosophy that outlines the Group’s overarching ESG commitments applied to our day-to-day operations, including:
- Strive to build quality assets (vessels and floating production facilities) that meet international environmental standards and provide environmentally and socially responsible operations;
- Aim to conduct and manage our business operations in a responsible manner with safety, reliability, good corporate governance and transparency as over-riding principles;
- Aim to minimise our ecological footprint on the environment, including the prevention of pollution, sustainable resource use and the conservation of energy and resources;
- Play a role in the improvement of social and economic aspects among the people and communities in the areas we operate in;
- Aim to provide a safe and equitable working environment for our people that is conducive to their professional development and to enhance employer-employee relationships, in line with our core values; and
- Work towards engaging and building trust with stakeholders through two-way dialogues, understanding expectations, communicating our Group’s goals and where possible, collaborating for mutual benefit.
Please click here to access the Sustainability Policy in Bumi Armada.
OUR SUSTAINABILITY MANAGEMENT STRUCTURE
OUR SUSTAINABILITY GOVERNANCE
- The formalisation of a management structure for sustainability governance will increase the level of oversight by the Board and Management on the company’s sustainability matters.
- The Management Team will play a pivotal role, via the Sustainability Council, in ensuring that sustainability is effectively integrated into the overall operations of the company.
- The Sustainability Council is tasked to approve proposed sustainability initiatives, monitor their progress, evaluate their impacts and provide recommendations to the Board.
- Through advocacy and execution of sustainability initiatives, the associated Workgroup will expedite the sustainable transformation of the company at all levels of operations.
OUR POLICY ON CLIMATE CHANGE
OUR POLICY ON CLIMATE CHANGE
As a member of the energy industry, Bumi Armada recognises that ESG risks are one of the key material areas that are important to our business. The Group strongly believes it has the responsibility to work towards minimising and mitigating ESG related impacts and, where possible, implementing sustainable practices across our operations. Bumi Armada accomplishes this by collaborating with our clients to engineer solutions which maximise the sustainable value of their assets while reducing the environmental impact of their operations. This is aligned with our Health, Safety, Security, Environment and Quality (“HSSEQ”) Management policy, where we are committed to protect the environment and the communities where we operate through pollution prevention, waste management and emission minimisation.
The Group acknowledge that climate change, one of the key ESG risk areas, affects all our stakeholders, including our shareholders, clients, employees and the communities. The Group approaches the challenge of climate change as an opportunity to do what we do best: innovate, collaborate, and drive efficiencies across our operations. Our Board of Directors and Management Team oversees all climate-related risks and opportunities, as part of our Enterprise Risk Management (“ERM”) framework. In line with our ERM framework, Bumi Armada is committed to addressing identified climate related risks, including public policy and regulations that are material to our business.
In line with commitments from the United Nation Climate Change Conference (“COP26”) and our Sustainability Philosophy, the Group aspires to achieve Net Zero Emissions by 2050 through our “Sustainable Quality Progress” strategy. The Group-wide Climate Change Policy establishes our climate strategy which centres on reducing atmospheric greenhouse gasses from within the industries we operate. The climate change policy is available here.
The principles of the Climate Change Policy include the following:
- Embedding consideration of climate change risks and sustainability in the design of our vessels.
- Collaborating with clients in providing cleaner and more reliable energy solutions through the adoption of green technology.
- Applying emergent green technologies on new projects where applicable and practicable.
- Continuing to fund progress engineering studies and pursue business developments for:
- Zero Greenhouse Gas (GHG) emissions FPSOs and Floating Liquefied Natural Gas (“FLNG”) vessels.
- Post combustion carbon capture and storage facilities.
- Innovate, collaborate, and drive efficiencies to reduce GHG emissions.
- Measure emissions accurately, prioritising and incentivising GHG reductions.
- Engaging our employees on climate change issues and the actions which they can take to help reduce GHG emissions.
- Ensure GHG emissions management plan are prioritised across the business.
- Prioritise minimum lifecycle carbon footprint throughout our supply chain.
- Collaborate with our clients and contractors to help reduce GHG from their operations
- Prioritise the development of offshore carbon sequestration business.
- Expand our LNG regasification business to drive cleaner energy alternatives.
- Ensure compliance with all applicable environmental laws and regulations.
- Report regularly to our shareholders on our progress in sustainability and stewardship of our business.
- Develop strategic partnerships with clients and contractors that are COP26 committed.
Our Goal
Environmental Sustainability Performance and Reporting
Assurance Exercise & Commercial indicators to be set
Biodiversity and Ecosystem
Shared value on conservation with local community and BAB staff
Awareness Programme
Inculcate green thinking across the company
Global Networking and Partnership
Improvement on technical knowledge and Continual Professional Development
Environmental Management System
Extension of ISO 14001 Scope
Environmental Sustainability Performance and Reporting
Assurance Exercise & Commercial indicators to be set
Biodiversity and Ecosystem
Shared value on conservation with local community and BAB staff
Awareness Programme
Inculcate green thinking across the company
Global Networking and Partnership
Improvement on technical knowledge and Continual Professional Development
Environmental Management System
Extension of ISO 14001 Scope
OUR ALIGNMENT TO UN SDGs 2030
OUR ALIGNMENT TO UN SDGs 2030
In addition to our Climate Change Policy and our Sustainability Philosophy, Bumi Armada has adopted selected UN SDGs that are material to our business. The Group remains committed to contributing positively to these global targets. We have adopted ten goals that are relevant to the nature of our business, operations and strategy
Sustainalytics’ ESG Risk Ratings measure a company’s exposure to industry specific material ESG risks and how well a company is managing those risks. This multi-dimensional way of measuring ESG risk combines the concepts of management and exposure to arrive at an assessment of ESG risk, i.e. a total unmanaged ESG risk score or the ESG Risk Rating, that is comparable across all industries. Sustainalytics’ ESG Risk Ratings provide a quantitative measure of unmanaged ESG risk and distinguish between five levels of risk: negligible, low, medium, high and severe.
In May 2024, Bumi Armada received an ESG Risk Rating of 19.9 and was assessed by Sustainalytics to be at LOW risk of experiencing material financial impacts from ESG factors.
Sustainalytics’ ESG Risk Ratings measure a company’s exposure to industry specific material ESG risks and how well a company is managing those risks. This multi-dimensional way of measuring ESG risk combines the concepts of management and exposure to arrive at an assessment of ESG risk, i.e. a total unmanaged ESG risk score or the ESG Risk Rating, that is comparable across all industries. Sustainalytics’ ESG Risk Ratings provide a quantitative measure of unmanaged ESG risk and distinguish between five levels of risk: negligible, low, medium, high and severe.
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Our ENVIRONMENTAL AND SOCIAL CORPORATE RESPONSIBILITY
Our ENVIRONMENTAL AND SOCIAL CORPORATE RESPONSIBILITY
Bumi Armada is committed to investing in and supporting the communities in which we live and work. We constantly look for ways to bring shared value and development to help improve the lives of the people around us. Education, Health and The Underprivileged are the three pillars which govern our community activities.
In 2023, we developed an Environmental & Social Responsibility guidelines that will guide our approach to corporate responsibility and strengthen alignment with the Sustainable Development Goals (SDGs) 2030 of the United Nations. Please click here to find out more about our guidelines.
OUR SUSTAINABILITY ACCOLADES
OUR SUSTAINABILITY ACCOLADES
Bumi Armada Berhad is proud to be recognised at the Sustainability & CSR Malaysia Awards 2025 as the Company of the Year under Energy Facilities & Services – Community & Environmental Care
Bumi Armada Berhad was once again been recognised as a winner for two prestigious awards: 3G Best Sustainability Reporting Award 2024 and 3G Excellence in Green Innovation and Solutions Award 2024
Bumi Armada Berhad has shone once again
on the global stage by winning not one, but TWO prestigious awards: 3G Excellence in ESG Practices Award 2023 and 3G Leadership in Sustainability Reporting Award 2023
Bumi Armada Berhad won the prestigious Silver Award at The Edge Malaysia ESG Awards 2023: Equity Awards
Bumi Armada Berhad was awarded the prestigious “Highest Returns to Shareholders Over Three Years” recognition at the The Edge Billion Ringgit Club Corporate Awards 2023
FTSE4Good
FTSE4Good Russell
Bumi Armada Berhad has been consistently listed on the FTSE4GOOD Bursa Malaysia Index and Bursa Malaysia Shariah Index. Furthermore, be on the top 25% ranking among FBM EMAS PLCs with 4-Star rating
Sustainability Statements
Sustainability Statements
ESG Index
FTSE4Good Bursa Malaysia Index
“The FTSE4Good Index Series is designed to measure the performance of companies demonstrating strong Environmental, Social and Governance (ESG) practices. Transparent management and clearly-defined ESG criteria make FTSE4Good indices suitable tools to be used by a wide variety of market participants when creating or assessing responsible investment products” (FTSE4GOOD Index Series).
Governance
CORPORATE GOVERNANCE & RISK MANAGEMENT
Tax Disclosure:
Bumi Armada operates in multiple countries around the world with a varying degree of scale and size. The Group looks to actively comply with all the local rules in each country with regard to in-country tax laws as well as all operating requirements and regulations.
The Company discloses details of its tax position in the notes to its audited accounts via its annual filing release to Bursa (the Malaysian Stock Exchange) and in its annual report to shareholders. This reporting methodology is in-line, and in full compliance, with the Company’s reporting standards.
The disclosure includes, amongst other areas, the local income tax position (in Malaysia) and foreign tax paid during the year, as well as tax provisions for prior years, deferred tax amounts and the overall group effective tax rate.
