Evaluating 2022 Financial Sustainability Report and check is it is following IFRS S1 and S2

Aramco Sustainability Report 2022 Investing in growth Innovating for sustainability About this report We are Aramco, one of the world’s largest integrated energy and chemicals companies Our approach to sustainability reporting In this Sustainability Report, we provide an overview of how we have integrated sustainability within our corporate strategy and operations; the material sustainability issues that impact our business and stakeholders; and a summary of key initiatives and sustainability performance during 2022. Reporting standards The following sections of this report have been prepared with reference to and guidance from the following frameworks, standards and guidelines: • Reporting guidelines for our Environment, Social and Governance (ESG) disclosures: Ipieca; • For developing and reporting our materiality matrix: Global Reporting Initiative (GRI) Sustainability Reporting Principles; • For measuring and reporting on our greenhouse gas (GHG) emissions: Greenhouse Gas Protocol; and • For developing and reporting our health and safety performance metrics: Occupational Safety and Health Administration (OSHA) Standards and the American Petroleum Institute Recommended Practices. Reporting boundaries, scope and basis of preparation This report contains data for the full year 2022 (January 1 – December 31). Where available, we have compared 2022 performance with 2021 and 2020 data. We have followed industry guidance on defining the boundary scope for performance data. For clarity and transparency, the specific reporting boundaries of each metric for 2022, 2021, and 2020 data have been noted in detail on page 86 in the Data section of this report. As we progress on our reporting journey and our controls around ESG data mature, we have expanded the scope of our reporting for some metrics, which were limited to the Kingdom of Saudi Arabia in 2021, to cover our operational control reporting boundary for 2022. Acquisitions made during the year will not be reportable until after the first full year of operation. Therefore, acquisitions made during 2022 will be reportable from FY2024 onwards. Any site that is not fully operational will be excluded from reporting to ensure effective data controls and systems are in place. The basis of preparation on how we measure and report on the sustainability performance metrics that undergo external independent assurance can be found online here. ore information M on assured data and assurance statements can be found online here For the avoidance of doubt, SABIC and S-Oil’s nonfinancial performance data are not in the scope of this report. Both subsidiaries are publicly listed and issue separate annual sustainability reports. Internal controls and data validation All figures in this report represent the latest available, internally validated data, unless specifically referenced. Some of the totals presented may reflect the roundingdown or rounding-up of subtotals. Aramco’s internal reporting systems capture and record the data used in this report. All data has been subject to internal validation, including data reviews by the reporting businesses and internal subject matter experts. Independent assurance Third-party independent assurance has been sought against 16 prioritized performance metrics, including GHG emissions and fatalities, in accordance with the revised International Standard on Assurance Engagements 3000 (ISAE 3000 revised). Data that has undergone assurance has been referenced throughout the report and the assurance statements can be found online here. Cover image: To protect the highly sensitive ecosystem in Manifa, we followed strict environmental policies enforcing drilling, land, and air protection measures. We also designed a causeway to improve and increase the density of marine life. Learn more about Manifa oil field. OVERVIEW Investing in growth Innovating for sustainability Governance ……………………………………………………………………… 83 Overview At a glance ……………………………………………………………………………….. 02 Aramco strives to provide reliable, affordable, and more sustainable energy to communities around the world, and to deliver value to its shareholders through business cycles by maintaining its preeminence in oil and gas production and its leading position in chemicals, aiming to capture value across the energy value chain and profitably growing its portfolio. Data Executive summary ………………………………………………………………….. 08 Abbreviations, terms and glossary…………………………………………….. 94 Our stakeholders ………………………………………………………………………. 10 Forward-looking statements……………………………………………………… 99 Chairman’s message …………………………………………………………………. 06 Our metrics ………………………………………………………………………………. 86 Sustainability framework ………………………………………………………….. 12 Materiality………………………………………………………………………………… 13 Our sustainability focus areas 19 see page Safe operations and people development 43 see page Minimizing environmental impact 57 see page GOVERNANCE Climate change and the energy transition GROWING SOCIETAL VALUE President and CEO’s message……………………………………………………. 07 Sustainability and our strategy………………………………………………….. 04 MINIMIZING ENVIRONMENTAL IMPACT Contents Aramco’s vision is to be the world’s preeminent integrated energy and chemicals company, operating in a safe, sustainable and reliable manner. SAFE OPERATIONS AND PEOPLE DEVELOPMENT Our mission CLIMATE CHANGE AND THE ENERGY TRANSITION Our vision Growing societal value 71 see page DATA 01 At a glance Our business in 2022 $161 Net income (billion) 13.6 258.8 Total hydrocarbon reserves1 (billion boe) 56.3 Total hydrocarbon production2 Net chemicals production capacity3 (MMboed) (MMtons/year) 4.1 $38 Net refining capacity Capital expenditures (MMbpd) (billion) 12.0 Employees (MMbpd) as at December 31, 2022 10.3 R&D spend4 Upstream carbon intensity5 (billion) (Kg CO2e/boe) 0.014 As part of a long-term strategy of investing (e.g., via our contribution to the Oil and Gas Climate Initiative (OGCI)) in innovative solutions to achieve lower carbon and lower energy intensity, Aramco established a new $1.5 billion Sustainability Fund to invest in technologies needed to address climate challenges. 70,496 Maximum Sustainable Capacity (MSC) $1.2 $1.5 billion Sustainability Fund 50+ Lost time injuries/illnesses rate5 Countries (per 200,000 work hours) in which we operate 85+ Circular economy For the first time in the Middle East and North Africa (MENA) region, Aramco and its partners produced International Sustainability and Carbon Certification + (ISCC+) certified circular polymers from plastic waste derived oil at SATORP. Aramco Sustainability Report 2022 Nationalities globally 1. Hydrocarbon reserves of Saudi Arabian Oil Company (the Company) as at December 31, 2022, under the Concession agreement. 2. Total hydrocarbon production (mboed) is derived from MMscfd (for natural gas and ethane) by dividing the relevant product production by 5.400 (in the case of natural gas) and 3.330 (in the case of ethane). 3. Excludes SABIC Agri-Nutrients and Metals (Hadeed) businesses. 4. Total Group R&D including SABIC. 5. This figure has undergone external limited assurance in accordance to the ISAE 3000 (revised). The assurance report can be found online here. 02 Voluntary carbon market Aramco participated in the first carbon credit auction held in the MENA region through the Regional Voluntary Carbon Market. OVERVIEW CLIMATE CHANGE AND THE ENERGY TRANSITION Manifa field development The Manifa field development project was recognized as the Upstream Project of the Year at the 2022 Middle East Energy Awards for its development, management, and production, and its innovative solutions for protecting the fragile marine ecosystem in Manifa Bay. SAFE OPERATIONS AND PEOPLE DEVELOPMENT MINIMIZING ENVIRONMENTAL IMPACT Maximizing liquids-to-chemicals value chain As part of plans to utilize more hydrocarbons for non-combustion uses, Aramco agreed to develop one of the world’s largest refinery-integrated petrochemical steam crackers in South Korea through its S-Oil affiliate, which will convert crude oil into petrochemical feedstock. Reinforced supply chain Our Jafurah unconventional gas field Containing an estimated 200 trillion standard cubic feet (scf) of natural gas, the Jafurah unconventional gas field development is now underway, targeting one of the largest liquid-rich shale gas plays in the Middle East. The Jafurah facility is expected to play a key role in the Saudi Arabian domestic energy sector, displacing significant volumes of oil with gas and in turn lowering emissions. DATA Through its In-Kingdom Total Value Add (iktva) program, Aramco signed over 90 corporate procurement agreements valued at $17.3 billion (SAR 64.9 billion) with manufacturers in Saudi Arabia, which are expected to reinforce Aramco’s robust supply chain. A joint development agreement between Aramco, SLB and Linde was signed to construct one of the world’s largest planned carbon capture and storage (CCS) hubs, in Jubail, Saudi Arabia, with a capacity target of 9 MMtpa by 2027. GOVERNANCE As we explore the development of blue hydrogen as a commercial opportunity that could support emissions reductions in hard-todecarbonize sectors, two Aramco subsidiaries (SASREF and SABIC Agri-Nutrients (AN)) received the world’s first independent certification for production of blue ammonia and blue hydrogen. Building one of the world’s largest carbon capture and storage hubs GROWING SOCIETAL VALUE Blue ammonia and blue hydrogen certification 03 Sustainability and our strategy Positioning Aramco for the future Increasing shareholder and societal value sustainably Aramco supports the aims of the Paris Agreement; all of us have a vested interest in protecting the world from human-caused climate change while pursuing economic and social sustainable development. As one of the world’s largest integrated energy and chemicals companies, we have an important role to play along our value chains. As the world emerges from the effects of COVID-19 lockdowns and deals with the on-going impacts of the conflict in Ukraine, we are facing significant global energy challenges. In Aramco’s view, these challenges have confirmed the world’s need to increase oil and gas investments, especially capacity development. Importantly, investing in conventional resources does not mean that alternative energy resources and technologies should be ignored. We believe that any energy transition requires a new global energy consensus built on three long-term strategic pillars: • Recognition by policy makers and other stakeholders that supplies of affordable conventional energy will continue to be required over the longer term; • Further reductions in the carbon footprint of conventional energy and improved energy intensity across the economy are priorities, and technology will be a critical enabler for this; and Aramco Sustainability Report 2022 • New, lower carbon energy sources, steadily complementing proven conventional resources. 04 At Aramco, we are addressing all three. We are investing to increase our maximum sustainable oil production capacity to 13 million barrels per day by 2027. We are also growing our gas production, potentially increasing it by more than half through 2030 with a mix of conventional and unconventional gas. At the same time, we are working to lower our upstream carbon intensity, our gas flaring intensity, and our methane intensity, which are already among the lowest in the world. We are also intensifying efforts to advance key enabling technologies, particularly CCS, which is mission-critical to a sustainable future. Importantly, we are gradually adding new, lower carbon energy products to our own portfolio, such as blue hydrogen and blue ammonia, renewables, and low carbon synthetic fuels. Meanwhile, chemicals will become a much larger and more strategic part of our portfolio, growing the non-combustible, and lower emission, uses of oil. This is our plan to be part of a practical, stable, and orderly energy transition. We must partner to drive innovation and value on an unprecedented scale and speed to deliver results across the three pillars successfully. In our view, technologies of the Fourth Industrial Revolution are ripe for such partnerships, especially the rapid digital transformation of our industry. The right digital investments now could help deliver greater efficiency, lower costs, lower emissions, higher reliability, and higher profits over decades. Transforming the massive existing worldwide energy system, and delivering a secure and sustainable future for everyone, is a truly formidable task that will require both individual and collaborative efforts across industries, along value chains and involve governments, regulators and consumers. OVERVIEW Our strategic themes Aramco focuses on four strategic themes across its businesses: Upstream preeminence Lower carbon initiatives Localization and the promotion of national champions The Company facilitates the development of a diverse, more sustainable and globally competitive in-Kingdom energy ecosystem to underpin the Company’s competitiveness and support the Kingdom’s economic development. GROWING SOCIETAL VALUE Aramco’s strategy requires a number of enablers to be successful, including: People See page 19 Aramco’s technology program strives to develop new solutions for its Upstream and Downstream businesses, and to help in diversifying its product portfolio, grow its business sustainably and achieve its net zero ambition. Safe operations and people development See page 43 Portfolio optimization Aramco seeks to unlock value, enhance its capital structure and reallocate capital to higher growth and return investments. Aramco has a comprehensive and disciplined internal approval process for capital expenditures, new projects and debt issuance. Minimizing environmental impact See page 57 Growing societal value See page 71 05 DATA Climate change and the energy transition Technology GOVERNANCE Aramco recognizes the need to prepare its workforce for the future, thereby ensuring its capabilities match the requirements of its strategies, by  advancing technical and professional skills, developing commercial and leadership competencies and supporting the progress of localization, and focusing on diversity and inclusion. Our sustainability focus areas The Company has a dedicated linkage to domestic and internationally wholly-owned and affiliated refineries and chemicals operations that are critical to monetizing its upstream production. Through continued strategic integration, the Company captures additional value across the hydrocarbon chain. MINIMIZING ENVIRONMENTAL IMPACT The Company plans to reduce the net carbon emissions of its operations and to support the global energy transition through the development of lower carbon products and solutions across the energy, chemicals, and materials sectors. Downstream integration SAFE OPERATIONS AND PEOPLE DEVELOPMENT As the principal engine of value generation, the Company intends to maintain its position as the world’s largest crude oil company by production volume and one of the lowest cost producers. The Company’s vast reserves base, spare capacity, and unique operational flexibility allow it to effectively respond to changes in demand. Our key enablers CLIMATE CHANGE AND THE ENERGY TRANSITION Our strategy Chairman’s message Investing in growth In 2022, we took further action to reduce Aramco’s emissions impact, by enhancing our energy efficiency, participating in the Kingdom’s inaugural carbon credit auction, and unlocking the Kingdom’s first large-scale carbon sequestration opportunity. All of these activities are designed to ensure that as long as oil is needed, a barrel of Aramco crude will be among the least carbon intensive on the market. When we talk about sustainability at Aramco, we understand that it is about balancing the economic benefits to our owners, the social value and utility that our activities and products generate for customers and consumers, and minimizing any negative environmental and social impacts, to build something that will last: a company that will still be standing strong, generations from now. At Aramco, we recognize the challenge of sustaining our business and supporting the world’s climate ambitions. As we set out in this report, all plausible pathways to global net zero show that ample supplies of conventional energy will still be needed in 2050 and beyond. With one of the lowest upstream carbon intensities per barrel of oil equivalent and an ambition for near zero routine flaring, Aramco is ideally placed to help meet that demand. Demand continues to rise, though not always reliably matched by global supply. 2022 provided an unwelcome reminder that high and volatile energy prices are deeply damaging to the global economy. This could also impede the energy transition itself by raising the costs related to energy policies as well as the cost of material inputs needed for a lower carbon energy system. At a time of great geopolitical stress and underinvestment across our industry, we view our commitment to invest in new upstream production as a responsible course. Aramco Sustainability Report 2022 However, ensuring security of supply is not where Aramco’s responsibilities end. We also have a responsibility to the environment and to the communities in which we are privileged to operate. We are also continuing to support a global orderly energy transition towards a lower carbon emissions future, as we seek to develop blue hydrogen, advanced fuel combustion systems and lower carbon synthetic fuels. While the climate challenge remains central, for Aramco, sustainability also means having a robust local supply chain, operating in resilient local communities, and being part of a vibrant Saudi economy that excels in many other fields besides crude oil. As you will see in this report, we continue to make progress in all these areas. The Company’s recent achievements in supply chain localization — including the first ever “made in Saudi Arabia” drilling rigs — are a personal highlight for me. We are also continuing to support a global orderly energy transition towards a lower carbon emissions future, as we seek to develop blue hydrogen, advanced fuel combustion systems and lower carbon synthetic fuels.” As ever, our gratitude goes out to The Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud, and His Royal Highness Prince Mohammed bin Salman Al-Saud, Crown Prince and Prime Minister of the Kingdom of Saudi Arabia. Guided by their vision, Aramco is a global energy and chemicals powerhouse — securing our future as the world’s indispensable energy supplier. H.E. Yasir O. Al-Rumayyan Chairman of the Board of Directors 06 President and CEO’s message OVERVIEW Innovating for sustainability Aramco has strengthened its unique and central role in providing the world the reliable energy it requires for an orderly energy transition.” GROWING SOCIETAL VALUE As you will see in the following pages of this report, Aramco continues to make significant progress in key areas of sustainability, biodiversity, localization and more. These improvements are a direct result of the talented people who work for Aramco, and credit goes to them for their commitment, passion and drive to succeed. While our Company has plentiful oil and gas reserves, our number one asset is our people. Our successes are their successes, and I look forward to achieving and reporting continued progress as we advance on our sustainability journey together. GOVERNANCE As the world seeks to strike the right balance with the energy transition, Aramco is maintaining positive momentum through our ambitious chemicals program and a focus on the materials transition. We are striving to convert up to 4 million barrels of liquids-to-chemicals per day by 2030. In addition to significant advancements in CCS and hydrogen, we are also investing in renewables. MINIMIZING ENVIRONMENTAL IMPACT In 2022, we made significant progress on interim targets toward our net zero ambition. We also proudly established a $1.5 billion Sustainability Fund through Aramco Ventures, which will invest in technologies that will make a difference in addressing the challenge of balancing energy security and sustainability. In addition, we announced plans for one of the largest scale CCS hubs in the world. Aramco, in partnership with SABIC Agri-Nutrients, shipped 25,000 metric tonnes of the world’s first commercially accredited blue ammonia to South Korea in 2022. We have made significant strides in increasing diversity in the workplace, employing more women and people with disabilities, including a 23% increase in the number of women in leadership roles at Aramco. Safety is one of Aramco’s core values, and each health and safety incident must be reported and investigated to avoid recurrence. While we recorded enhancements in a number of safety metrics in 2022, unfortunately, we suffered the loss of five lives from our dedicated team of employees and contractors. These incidents underscore the critical importance of focusing on safety above all else, and we are fully committed to ensuring that we learn from these incidents, and that each and every person returns home safely, every day. SAFE OPERATIONS AND PEOPLE DEVELOPMENT Over the last year, there has been increasing acceptance of the fact that there needs to be a better balance between maintaining energy security, energy affordability and environmental sustainability. As you will see in this year’s Sustainability Report, Aramco has strengthened its unique and central role in providing the world the reliable energy it requires for an orderly energy transition. CLIMATE CHANGE AND THE ENERGY TRANSITION We are also placing an enhanced focus on innovation and technology to maintain our leadership position as one of the lowest average upstream carbon intensive producers in the world, along with seeking to improve on our upstream methane intensity of 0.05% which is already well below the Oil and Gas Climate Initiative ambition (0.20% by 2025). DATA Amin H. Nasser President and CEO 07 Executive summary Our sustainability performance Our focus areas Aramco has an important role in helping the world navigate the energy transition. What we do as a global community will determine the legacy we leave for future generations. Our intention is to be a part of the solution that creates a stable energy environment which fosters innovation and growth opportunities in developing and developed countries. We are also committed to providing a healthy, safe, and rewarding environment for our people, our suppliers and communities where we operate while rehabilitating and mitigating the impact on our natural environment. We have identified four focus areas: Climate change and the energy transition Safe operations and people development Minimizing environmental impact Growing societal value Each of these focus areas support Aramco’s strategic themes and align with both Saudi Arabia’s Vision 2030 and the UN Sustainable Development Goals (SDGs), directly and indirectly. These elements form our sustainability framework, which is presented on page 12. As part of ongoing materiality reviews and engagement with our stakeholders, we continue to build on this framework, and in 2022 we have measured and added an additional 25 ESG metrics (5 environmental metrics, 17 social metrics and 3 governance metrics) to the 36 metrics we reported in 2021. These metrics allow us to continue to prioritize key issues most material to our Company and our stakeholders, which we discuss further on page 10. Climate change and the energy transition In line with our ambition to achieve net zero Scope 1 and Scope 2 GHG emissions across wholly-owned operated assets by 2050, we strive to provide reliable energy while maintaining leadership as one of the lowest carbon intensity producers of hydrocarbon products. For more details, see page 19 • Committed to build one of the world’s largest CCS hubs (capacity target of 11 MMtpa by 2035) • Established a $1.5 billion Sustainability Fund to invest in technology to address climate challenges • An ambition to reduce our emissions by ~52 MMtCO2e and lower our upstream carbon intensity by 15% by 2035 • Delivered an upstream methane intensity of 0.05%, well below the OGCI ambition (0.20% by 2025) • Participated, and purchased credits, in the first carbon credit auction through the Regional Voluntary Carbon Market Scope 1 emissions2 (MMtCO2e) 55.7 16.1 (2021: 52.3) Scope 2 emissions2 (MMtCO2e) 10.3 Aramco Sustainability Report 2022 (2021: 15.5) Upstream carbon intensity1 (kg CO2e/boe) (2021: 10.7) 1. This figure has undergone external limited assurance in accordance to the ISAE 3000 (revised). The assurance report can be found online here. 2. The Jazan Refinery (our downstream refinery) is excluded from our current GHG reporting because in 2022, it remains in the startup and stabilization phase and is not fully operational. Aramco is working to stabilize the refinery’s operations and complete all necessary reporting configurations before the end of 2023. Reporting on the refinery’s environmental and sustainability elements will commence immediately thereafter, in line with the Company’s commitment to operational transparency. 08 OVERVIEW Growing societal value We strive to conserve natural resources, apply circular models across our value chain, and to have a legacy of projects that improve both natural habitats and shared resources. For more details, see page 57 We seek to grow value wherever we operate. With our biggest footprint in Saudi Arabia, we have invested in the Kingdom’s oil and gas ecosystem to enhance the reliability of our supply chain, providing employment and economic opportunities to thousands of Saudi nationals. For more details, see page 71 For more details, see page 43 • 50% of enrollment in Aramco’s college preparatory programs were female • 23% increase in female employees in leadership positions • 26% increase in apprentices (1,728 in 2022 versus 1,369 in 2021) 11 (%) 6.4 • Pursuing a water neutrality strategy • Planted 11 million mangroves and an additional one million trees Freshwater consumption (million m3) Hydrocarbon spills (number) (2021: 11) (2021: 5.61) 93.61 15 (%) • Spent $370 million on a range of global socio-economic and environmental initiatives iktva spend (% in-Kingdom) (2021: 94.6) 53 (2021: 13) Net positive impact on biodiversity*1,2 • Via iktva, facilitated creation of 31 new local manufacturers (2021: N/A) 63 90.9 (2021: 59) Saudi nationals employed (%) Social investment* ($ million) 370 (2021: 90.5) DATA Female employees • ISO 14001 certification for 98%1 of applicable facilities in 2022, with a view to complete coverage in 2023 • Via our investments, encouraged suppliers to have an aggregate investment of over $600 million in capex, which also created over 4,000 jobs in our supply chain in Saudi Arabia GOVERNANCE 5 (2021: 1) (number) • Ambition to deliver net positive biodiversity and ecosystem impacts • Aramco entered into over 90 agreements with an estimated value of $17.3 billion to build longterm collaborative relationships with strategic local suppliers GROWING SOCIETAL VALUE • Conducted over 1,100 exercises for emergency preparedness Tier 1 process safety events • Over 20 initiatives incorporating circular economy principles • Continued investments in tail gas treatment facilities • 66% increase in interns (3,190 in 2022 versus 1,922 in 2021) (number) • Launching refurbishment and recycling programs for material streams and equipment MINIMIZING ENVIRONMENTAL IMPACT • 28% of direct hires were female Fatalities1 SAFE OPERATIONS AND PEOPLE DEVELOPMENT We are committed to providing a safe and respectful working environment for all, on-site and within the community, supported by appropriate safety procedures, policies and resources. We strive to support, diversify, and empower our workforce. Minimizing environmental impact CLIMATE CHANGE AND THE ENERGY TRANSITION Safe operations and people development (2021: N/A) 1. This figure has undergone external limited assurance in accordance to the ISAE 3000 (revised). The assurance report can be found online here. 2. The Net positive impact (NPI) metric is a new KPI developed in 2022 and there is no prior year comparative. The purpose of the NPI is to aspire to achieve net gains for biodiversity and ecosystem services. This is when overall negative impacts on biodiversity are outweighed by the biodiversity gains that are achieved through conservation projects. For the formula of the metric, please refer to page 86 in the Data section of this report. * Metric reported for the first time externally. 09 Our stakeholders Stakeholder engagement Aramco recognizes that there is a social contract between our Company and the society within which it operates. Aramco interacts with a range of stakeholders to ensure that their perspectives are considered in the development of our business plans, sustainability plans and objectives; from project planning, to execution, long-term operations and of course, customer service. During the year, we engaged with key stakeholders on a diverse range of topics. Our people Communication channels and examples of engagement: Our suppliers, partners and contractors Communication channels and examples of engagement: • Business performance reviews • Workshops • On-boarding program • Training programs • Supplier facility visits Discussion topics: • Engagement on supply chain disruption and mitigation plans • Performance on quality, delivery and price • Safety requirements • Supplier Code of Conduct • Agreeing ESG initiatives with suppliers to improve their capabilities • iktva Investors, financial institutions, rating agencies, and insurers • Town halls • Human Resources Communication channels and examples of engagement: • Employee engagement surveys • Recognition events • Semi-annual earnings calls • Employee networks • Senior leadership meetings • External disclosures • Young Leaders Advisory Board • Safety meetings • Direct investor communication • Training • Quarterly engagement talks on current events • Annual General Meeting • Intranet Discussion topics: • Annual insurance renewals • Engagement with ClimateAction100+ • Conferences and non-deal roadshows Discussion topics: • Our vision and mission • Remuneration • Corporate ethics and values • HSE performance • Climate change and the energy transition • Financial and operational performance and outlook • Professional development • Industry trends, current events • Environmental performance • Career progress • Community support/ volunteering • Human capital management • Sustainability (including GHG emissions) related targets and performance • Our strategy • Risk management • Sustainability Our customers Communication channels and examples of engagement: Aramco Sustainability Report 2022 • Revolving credit facility meetings • Customer feedback forms • Customer service centres • Face-to-face meetings • Trade shows and conferences • Regular engagement between sales teams and our business customers • Email/newsletters Discussion topics: • Sustainability • Health and safety performance • Quality control 10 Local charities and nonprofit organizations Communication channels and examples of engagement: • Volunteer events • Student mentoring • Community events • Citizen Advisory Panel meetings • Employee service on community boards Discussion topics: • Corporate donations • Matching contributions • Community needs OVERVIEW CLIMATE CHANGE AND THE ENERGY TRANSITION Regulators and industry associations Communication channels and examples of engagement: • Community of ESG Practitioners Working Group within the World Economic Forum (WEF) • Saudi ministries and regulators • OSHA • Various working groups in Ipieca • International Sustainability Standards Board (ISSB) • US Environmental Protection Agency (EPA) • Saudi Organization for Chartered and Professional Accountants (SOCPA) • American Petroleum Institute • International Emissions Trading Association (IETA) • American Fuel and Petrochemical Manufacturers • OGCI • Saudi Exchange, Capital Market Authority, London Stock Exchange • American Society for Testing and Materials • Standards setting • Permits • Compliance with regulatory standards • Knowledge sharing on best practices • Project specific discussions • Collaboration on industry standards • Balancing the energy transitions • City Council meetings • School board meetings • Local industry groups meetings • Quarterly community newsletters • Plant tours • Direct mailings • Conferences Discussion topics: • Social impacts of operations and expansion plans • Charitable giving • Emergency response and preparedness • Workforce development • Environmental stewardship • Local content • Health and wellness programs • Community development and outreach • Mentoring programs and scholarships • Economic and social investments • Small business support “Meeting the world’s energy needs in a sustainable manner, without compromising energy security, reliability and affordability, is more essential today than ever before. The B20 Energy, Sustainability, and Climate Task Force plays a key role in leveraging existing capacities and aligning collectively to solve energy transition challenges.” DATA • Pipeline awareness Aramco B20 Co-Chairmanship’s message: GOVERNANCE • Citizen Advisory Panel meetings • Economic development associations • Enhancing consumer level access and ability to consume clean, modern energy. GROWING SOCIETAL VALUE • Community events Aramco’s Co-Chairmanship of the Energy, Sustainability, and Climate Task Force was demonstrated through the year-long active negotiations that led to the publishing of a policy paper proposing three policy recommendations as part of the B20 communique to the G20, which were centred around enhancing global cooperation to: • Ensuring a just, orderly, and affordable transition to sustainable energy use across developed and developing countries; and Communication channels and examples of engagement: • Student mentoring Aramco’s Co-Chairmanship • Reducing carbon intensity of energy use through multiple pathways; Our local communities • Volunteer events What are we doing? MINIMIZING ENVIRONMENTAL IMPACT Discussion topics: • Supply disruptions SAFE OPERATIONS AND PEOPLE DEVELOPMENT • Business20 (B20) Energy, Sustainability and Climate Task Force under G20 Indonesia 2022 11 Sustainability framework Our sustainability framework the UN SDGs and Vision 2030 to our four focus areas, and which encapsulate the material ESG topics stakeholders expect us to address. Our sustainability framework sets out the areas that hold the greatest potential for our business to have long-term positive impacts, connecting ’ Sustainable Developme ations nt G oals ted N i n U i Arabia’s Vision 2030 Saud At trac t in g t al e n t Growing societal value Minimizing environmental impact Re ti or pp m p Su a n d t e r en n ed g s m ris ium all es Em Aramco Sustainability Report 2022 pow e s o c i ri n g et y 12 W ma n a s t e ag eme nt Alternat i ve hydrog energ y en a m mo a nd : ni a e r th g fo Investin erm lo n g t How we work Safe operations and people development r s if y in g Dive nomy e co the Climate change and the energy transition g c in e n t du y m R e p lo em A un Sa u I n di i ti a en re G i ve t I nc re par wom asin t the icip en’ g wo atio s ustainability focus a rk n i o’s s fo n r c e as rc e ram d p o u c in llu g a tio i r n le ewab Re n e rg y en ti n g C o m b a ti o n ca d e s e r ti f i g in rv e s e e lif e r P rin ma Materiality The exercise consisted of: • External stakeholder engagement (details on pages 10 and 11); • Internal stakeholder engagement (details on page 10); • Review of existing (e.g., Ipieca sustainability guidelines) and upcoming standards (particularly the ISSB); and From our benchmarking, internal analysis, and stakeholder engagement, we identified and evaluated over 150 ESG topics. The outcomes of these assessments were tested with external and internal stakeholders to evaluate the relative significance of multiple topics impacts on our business. Prioritizing topics enables us to focus on where we can make meaningful differences. • Greater quantitative and qualitative information is required on some material topics, e.g., biodiversity and human rights, which had no metrics in the prior year. Therefore, for this report, we have introduced metrics and more information on our approach toward biodiversity and human rights; • Reconfirmed that Aramco’s roadmap to establish additional metrics to better monitor and report on our performance under each focus area and material topic is correct. Due to the increasing maturity of existing KPIs and new metrics, we have increased the number of KPIs and metrics in this report to 61 (an increase of 25 metrics from the 36 metrics in the 2021 Sustainability Report); MINIMIZING ENVIRONMENTAL IMPACT • Peer benchmarking. • Our four focus areas and 13 material topics (plus our focus on corporate governance2) remain relevant and appropriate; SAFE OPERATIONS AND PEOPLE DEVELOPMENT The materiality assessment is an in-depth analysis of the risks and opportunities that we face in our stakeholders’ topics of interest and serves as an essential process for selecting key sustainability topics for Aramco. Upon completion of our materiality refresh exercise and extensive stakeholder engagement, a summary of conclusions and subsequent actions, where appropriate, are provided below: CLIMATE CHANGE AND THE ENERGY TRANSITION During 2022, we performed an annual materiality1 refresh to assess whether our sustainability focus areas, ESG material topics, prioritized SDGs and metrics remain relevant and appropriate. OVERVIEW Our material ESG topics GROWING SOCIETAL VALUE • Ensure our metrics present a more complete picture of our total footprint. Therefore, various metrics (e.g., water consumed and waste generated) have expanded in scope from Company in-Kingdom to the operational control boundary level; • Increase our prioritized SDGs from 10 to 12 by including SDG 4 (Quality Education) and SDG 17 (Partnerships for the Goals) — more details on how we’ve contributed to these are provided over the next few pages; and • Increasing the number of our metrics in our Sustainability Report undergoing external assurance; from 6 metrics in 2021 to 16 metrics in 2022. GOVERNANCE DATA 1. The concept of “materiality” refers to the guidance on external reporting from the Global Reporting Initiative, and does not necessarily correspond to the concept of materiality used in connection with Aramco’s financial reports. 2. For more information on our governance, relevant material topics and our governance metrics, please refer to page 83 in this report and also page 90 in the 2022 Aramco Annual Report. 13 Materiality Mapping our material ESG topics Focus area Relevant metric to monitor performance against each material topic Climate change and the energy transition Climate change (including GHG emissions) • Scope 1 emissions (million metric tonnes of CO2e) • Scope 2 emissions (million metric tonnes of CO2e) • Upstream carbon intensity (kg CO2e/boe) • Upstream methane emissions (metric tonnes of CH4) • Upstream methane intensity (%) For more details, see page 19 • Flaring intensity (scf/boe) • Flared gas (MMscf) • Energy intensity (thousand Btu/boe) Example of our contributions to UN SDGs Material topics Impact Climate change (including GHG emissions) Investing in more than 12 GW in solar and wind energy by 2030, expanding CO2 storage capacity (e.g., CCS and CCUS) to support clean and affordable energy production, as well as investing in innovative flaring reduction technologies contribute to improved access to affordable, reliable and sustainable energy for all. Given the material impact climate change can have on human life and economic opportunities, Aramco continuously invests in lower carbon energy and alternative energy sources. This will create jobs and contribute to economic growth. Being one of the world’s lowest upstream carbon intensity major producers in line with the Kingdom of Saudi Arabia’s Vision 2030 toward cleaner energy, having an ambition to reach net zero emissions by 2050 from wholly-owned operated assets, and also leveraging our influence in non-operated assets, within the timeframe set by the Paris Agreement. As part of our commitment to this SDG in 2022, we planted 11 million mangroves and have set a target to plant another 31 million mangroves by 2025 along the Arabian Gulf and Red Sea shorelines. Aramco Sustainability Report 2022 Partnering with organizations with a climate focus, such as the OGCI, Ipieca and WEF, via collaboration with governments, the private sector across the different industries and civil society. Impact on our business Very high High Moderate Impact on our stakeholders 14 OVERVIEW CLIMATE CHANGE AND THE ENERGY TRANSITION Focus area Relevant metric to monitor performance against each material topic Safe operations and people development Workforce protection • Number of fatalities • Lost time injuries/illnesses rate (number of LTI cases x 200,000/total work hours) • Total recordable case frequency (total recordable incidents x 200,000/total work hours) • Health performance* (number of overdue major health findings) x (100)/total number of open major health findings) Process safety and asset integrity SAFE OPERATIONS AND PEOPLE DEVELOPMENT For more details, see page 43 • Number of Tier 1 process safety events Human rights • Number of grievances raised* Material topics Impact Workforce protection • Sites with a grievance mechanism in place* (%) Labor practices • Attrition rate* (%) • Number of company employees • Number of female employees* MINIMIZING ENVIRONMENTAL IMPACT Process safety and asset integrity • Female (%) of total employees • Female (%) of total number of new hires* • Number of female employees in leadership positions* Human rights • Female employees (%) in leadership positions • Number of contractor employees* • Employee engagement score* (%) Labor practices • Employees receiving regular performance reviews (%) • Number of hired graduates GROWING SOCIETAL VALUE • Number of apprentices • Number of interns • Total hours of training and development* • Average hours of training and development* (per employee) Examples of our contributions to UN SDGs Aramco has various health and safety and well-being programs for our employees (mental health initiatives, workplace standards and technology to minimize exposing our workers to unnecessary risk). GOVERNANCE Aramco believes in lifelong learning and development and continues to provide world-class learning experiences that drive personal growth and effective operations at all levels of the Company through innovative platforms such as corporate e-Learning, the Hosted University Programs, Advance Development Programs and others. Aramco is improving the gender balance of its workforce via a range of female empowerment initiatives. In Saudi Arabia, Aramco funds the STEMania program for school-age girls, offering university scholarships for science, technology, engineering and mathematical degrees. Very high High We have strong policies and processes to manage our ethics, bribery and corruption risks, and ensure a decent working environment for our workforce. DATA Impact on our business Moderate Impact on our stakeholders * Metric reported for the first time externally. 15 Materiality Mapping our material ESG topics Focus area Relevant metric to monitor performance against each material topic Minimizing environmental impact Local environmental impact • Number of hydrocarbon spills • Volume of hydrocarbon spills (bbl) • Recovered hydrocarbon* (%) • Hydrocarbon discharge to water (barrels) • SO2 emissions (kilotonnes) For more details, see page 57 • Number of sites with ISO 14001 certification* (%) Biodiversity and ecosystems • Net positive impact (%)* Water management Material topics Impact • Freshwater consumption (million m3) • Freshwater withdrawal (million m3) Product stewardship and waste management Local environmental impact • Industrial waste generated (metric tonnes) • Industrial waste recycled* (%) Biodiversity and ecosystems Examples of our contributions to UN SDGs Given water scarcity in Saudi Arabia, the Company has a large seawater treatment and injection network of facilities. Seawater is used as the primary source of water for oil production and to ensure clean water is available for our workforce and local communities. Water management Embracing circular economy (reduce, reuse, recycle and remove) principles and business models across our operations and activities. For example, our recent scrap-to-commodity program successfully recycled over 200,000 drum containers and over 80,000 tons of steel. Reintroducing these materials to local manufacturers as feedstocks eases the pressure on raw materials extraction and allowed us to recover over $30 million of value. For more information, please refer to Aramco’s circular economy section on our website. Product stewardship and waste management Aramco has systems in place to manage all discharged water to the sea, meeting Government requirements by investing in maintenance and monitoring systems while proactively managing operations to avoid hydrocarbon leaks and spills by maintaining asset integrity throughout the life cycle. Committed to delivering biodiversity net gain in support of SDG15, Vision 2030 and the Saudi Green Initiative. Aramco Sustainability Report 2022 Partnering with organizations, such as Ipieca, WEF and others, to help promote good industry practice and better environmental performance. We are also working closely with our suppliers and creating incentives to reward them for improvements in their environmental performance. Impact on our business Very high High Moderate Impact on our stakeholders * Metric reported for the first time externally. 16 OVERVIEW CLIMATE CHANGE AND THE ENERGY TRANSITION Focus area Relevant metric to monitor performance against each material topic Growing societal value Labor practices • Number of people on Aramco sponsored programs*1 National content • Saudization (%) For more details, see page 71 • Saudization of construction contracts (%) • Saudization of service contracts (%) SAFE OPERATIONS AND PEOPLE DEVELOPMENT • iktva procurement spend in-Kingdom (%) Human rights (supply chain) • % of active suppliers signed up to Aramco’s Supplier Code of Conduct* Material topics Impact • Number of active suppliers* Community and society Labor practices • Social investment* ($ million) • Number of volunteers* • Number of volunteer hours* National content Economic contribution Human rights (supply chain) MINIMIZING ENVIRONMENTAL IMPACT • Direct economic value generated and distributed ($ million) • Total R&D spend ($ million) Examples of our contributions to UN SDGs Aramco has various social investment programs, which look to improve the health and well-being of our host communities around the world. Community and society Economic contribution GROWING SOCIETAL VALUE Aramco believes in lifelong learning and development and continues to provide world-class learning experiences in our community. With a mission to equip the Saudi market with a highly motivated and qualified Saudi workforce, the Company has historically been building and maintaining schools for children and is also creating market/demand driven national training centers, which offer high standard vocational training programs to sponsored trainees. The Company also has a history of supporting the community via financing various education centers for people with development disabilities, such as Hiba Center for Down Syndrome and the Abdullatif AlFozan Autism Center (the first community center of its kind in Saudi Arabia’s Eastern Province to support children on the autism spectrum). GOVERNANCE Supporting the economic development of our employees and communities in Saudi Arabia via our iktva spend, various home ownership and Aramco initiatives to seed micro industries (e.g., Roseyar, beekeeping in al-Baha, fisheries in Yanbu’ and Baish, olive products in al-Jouf, coffee cultivation in Jazan). Industry: Creating a world-class local supply chain to serve the needs of the Company and its partners, facilitating the development of a diverse, sustainable, and globally competitive energy sector in the Kingdom. Innovation: At the heart of our business lies a commitment to innovate and maximize production from our resources, to deliver energy as efficiently as possible from the wellhead to customers. Very high High Moderate Impact on our stakeholders Infrastructure: The Kingdom’s Master Gas System delivers natural gas to industry across Saudi Arabia; while Aramco has also built various roads, educational facilities, cultural centers (e.g., Ithra, which delivered over 8,000 programs and welcomed more than one million visitors during 2022) and numerous other facilities across the Kingdom. DATA Impact on our business Partnering with governments, suppliers, non-profit organizations and education institutions. During 2022, $370 million was invested in various social initiatives, supporting more than 30 non-profit organizations around the world. * Metric reported for the first time externally. 1. These programs include the Vocational College Internship Program (VCIP), University Internship Program (UIP), Summer enrichment program, Tomooh program, Advantage program, and ACCEL International Ajyal Center. 17 Aramco Sustainability Report 2022 18 The challenge is to develop and deploy technology solutions at speed and scale, to provide the benefits of oil and gas for future generations, while minimizing emissions. It is a complex, multidimensional, and capital intensive challenge that will span generations. Climate change (including GHG emissions) Scope 1 emissions (million metric tonnes of CO2e) Scope 2 emissions (million metric tonnes of CO2e) Upstream carbon intensity (kg CO2e/boe) Upstream methane emissions (metric tonnes of CH4) Upstream methane intensity (%) Flaring intensity (scf/boe) Flared gas (MMscf) Energy intensity (thousand Btu/boe) Relevant UN SDGs GROWING SOCIETAL VALUE Relevant metrics MINIMIZING ENVIRONMENTAL IMPACT Material topics SAFE OPERATIONS AND PEOPLE DEVELOPMENT We are investing in technology needed for a stable energy transition that utilizes all sources of energy to meet the world’s growing energy demand while reducing GHG emissions. Our focus is on leading in lower carbon intensity energy production and supporting the development of non-fuel applications for crude oil, targeting the highest impact solutions across our value chain. CLIMATE CHANGE AND THE ENERGY TRANSITION As one of the world’s largest integrated energy and chemicals company, we have an important role to play to support energy security and promote sustainable practices in response to climate change. OVERVIEW Climate change and the energy transition GOVERNANCE DATA Learn more about Aramco’s GHG emissions management program. For more details on relevant metrics, see page 86. Scan here 19 The energy landscape Navigating the energy transition Toward a low carbon system Aramco supports the aims of the 2015 Paris Agreement to limit global temperature increase in this century to 2 degrees Celsius, while pursuing efforts to limit the increase even further to 1.5 degrees, and the commitment of the Kingdom of Saudi Arabia to achieve net zero emissions in its economy by 2060. This requires a transition of the global energy system toward a low carbon system, requiring thousands of large-scale projects across multiple sectors. This presents unprecedented design, engineering, and implementation challenges. The McKinsey Global Institute has estimated that a net zero world will cost around $275 trillion by 20501. Policymakers, industrial suppliers and customers recognize that this transition will not be uniform across geographies. What might be achievable today in more developed economies will be distinct from what is appropriate and effective in emerging markets. Growing markets, particularly in developing countries, face additional challenges to their ability to achieve sustainable development while meeting their needs for affordable, reliable energy. Reduction in GHG emissions across Europe and North America will proceed at a different pace from developing countries. What does unite all economies and societies is not only the desire to address the impacts of climate change, but also the need for affordable, reliable energy. Across any society, higher energy prices are a burden that disproportionately impacts lower income households. Balancing energy security, affordability and emissions Aramco Sustainability Report 2022 Events of the last few years, particularly COVID-19 and the conflict in Ukraine, have highlighted the risks of under-investment in energy sources and underlined the importance of energy security and energy access. Alternatives to traditional hydrocarbon-based energy sources are progressing, but on their own will be insufficient to meet the world’s energy demands today and ensure an orderly energy transition. As COP27 in Sharm El Sheikh highlighted, many developing economies depend upon the low-cost and reliability of hydrocarbons to avoid energy shortages and cost inflation — and they need realistic solutions now to ensure economic security, even while the energy transition develops in parallel. Although global energy systems are becoming more efficient each year, requiring less energy to meet the same level of economic activity, the demands of a growing middle-class and facilitating access to economies and communities that lack access to energy is leading to a growing energy demand. The definition of “affordable, reliable energy” diverges depending on the society and its position in the development index. Accordingly, prudent solutions will require a variety of energy sources and technologies. For example, around 800 million people do not have access to electricity and some 3 billion people still depend on indoor fires for cooking2 — their requirements differ substantially from those living in a highly advanced economy. With the focus on energy security and affordability, Aramco’s continued investment and capital expenditure to increase supply, combined with our high level of reliability and low carbon intensity of production, will support a global orderly energy transition. Our 2050 net zero ambition and 2035 GHG emissions reduction targets keep us focused on advancing in lower carbon intensity and abatement technologies and supporting the development of non-fuel applications for crude oil. We also continue to invest in the ability to meet the world’s need for energy sourced from hydrocarbons. This includes expanding the gas supply in Saudi Arabia, and exploring new markets, including for blue hydrogen and additional non-combustible uses for oil. A parallel materials transition At the same time, the global economy is facing the realities of having to invest in new supply chains for minerals, metals, and materials. Without adequate investment in oil and gas, there remains the risk of raising the cost of the critical inputs needed for any transition. Hydrocarbons will increasingly be used without combustion or where carbon emissions can be captured and removed. Fuels, such as blue hydrogen, using CCS technologies, are projected to increase in demand. Petrochemicals will provide feedstock essential to the development of new materials that will play a significant role in the energy transition — advanced, durable materials are essential for manufacturing wind turbines, solar panels, all modes of transportation, 1. McKinsey Report: “The Net Zero Transition”, January 2022. 2. Overseas Development Institute ‘Oil and gas, poverty and energy access’. 20 McKinsey Global Institute has estimated that a net zero world will cost around $275 trillion by 20501 OVERVIEW Energy security Energy transition scenarios Affordability Once the scenario pathways are defined, they are modeled using a proprietary energy analytics system. Scenario outputs include global economic indicators, energy market fundamentals, and GHG emission projections. MINIMIZING ENVIRONMENTAL IMPACT In our latest set of scenarios, we have used the energy trilemma framework, first developed by the World Energy Council, to determine alternate pathways for the future. The framework utilizes affordability, energy security and environmental sustainability as three policy objectives that require balance and trade-offs. Each of our scenarios accentuates one dimension of the energy trilemma triangle, while a fourth scenario depicts a balanced approach to these trade-offs. GROWING SOCIETAL VALUE The Company employs in-house expert economists and analysts to develop these scenarios. A wide range of internal and external stakeholders are engaged to determine the drivers of future energy landscapes, our strategies, and investment decisions. These and other important determinants, such as policy developments and climate goals, and technological progress form the basis of our scenario pathways. Environmental sustainability SAFE OPERATIONS AND PEOPLE DEVELOPMENT Scenario planning has been integral to Aramco’s decision-making process for around a decade. The first scenarios were developed in 2014, depicting four pathways to the future energy landscape our business operates in. We have updated the scenarios five times since the start of this journey, each time successively incorporating the increasingly complex nature of our business amid a fast-paced transition. During this decade, the energy world has endured a major downturn in oil price cycles, a pandemic, and several geopolitical events. Scenarios and outlooks have been critically important to strategic dialogues within our Company. CLIMATE CHANGE AND THE ENERGY TRANSITION storage devices, and infrastructure. The faster we accelerate the transition, the more of these materials we will need. Today, chemical products made from oil and gas enable over 90% of all manufactured goods. Aramco’s integrated energy and economic modeling system Climate model Natural gas Macroeconomy Energy demand Oil supply Prices Refining Petrochemicals DATA The system operates in an integrated manner with eight different sub-modules including economics, energy demand, climate, oil supply, gas supply, coal supply, refining, and petrochemicals. The system is capable of modeling at a country-level on 26 sub-sectors, 25 fuel types, energy carriers including electricity and hydrogen, and GHG emissions. GOVERNANCE Aramco developed its proprietary energy solutions platform in collaboration with a number of industryleading energy data providers and modelers. The platform is a computer-based integrated solution comprised of global economic and energy models. These models represent energy supply (oil, gas, and coal), demand (transportation, residential, commercial, and industrial), conversion (refining, power, and petrochemicals), and macroeconomics. 21 Climate change and the energy transition Our climate change and energy transition framework Our corporate strategy is based on producing hydrocarbons that have one of the lowest upstream production costs and carbon intensities in the world, and supporting a global orderly energy transition towards a lower carbon emissions future through investing in technologies and offering lower carbon products, including e-fuels. Our climate change and energy transition framework is informed by the circular carbon economy principles of reduce, reuse, recycle and remove. We have four areas of focus that provide the framework for our climate change initiatives and investments: Differentiate Sustain Diversify Leading in low carbon intensity operations Supporting the transition to low-impact energy pathways Developing and growing low-impact value chains GHG emissions management Lower carbon fuels and transport technologies Non-metallics Flaring and methane reduction Liquids-to-chemicals Hydrogen Energy management Renewable energy investment In-Company renewables Enable Aramco Sustainability Report 2022 Collaboration with partners to develop and deploy technologies and infrastructure at speed and scale Read about how Aramco seeks to adopt the principles of the circular carbon economy. Scan here 22 Carbon capture and storage Leveraging technology Developing offsets and supporting carbon markets Differentiate Sustain Diversify Enable We recognize the need to reduce our GHG and methane emissions and have ambitions and targets to reduce carbon emissions associated with our operations. Net zero ambition Aramco’s ambition is to reduce GHG emissions from our operations and achieve a net zero GHG emissions footprint by 2050 across our wholly-owned operated assets. It requires internal targets to be set for our businesses and assets, and for these targets to be embedded into our business planning, to ensure capital expenditure and resource requirements are in place. Risk Mitigation Policy: Policies restricting or banning use of fossil fuels, or applying a cost on carbon • Climate-related demand scenarios to inform business decision making Technology: Adoption of disruptive technologies and/or slow development of GHG reduction technologies • Accelerated development of our technology portfolios, including synthetic fuels, CCUS and CCS technologies, e.g., Jubail CCS Hub • Diversification into low GHG emitting Market: Loss of demand for products, e.g., chemicals and hydrogen hydrocarbons as customers move to achieve their GHG targets Legal: Potential exposure to climate-related litigation • Accurate and transparent reporting and disclosures with independent assurance Reputation: Impact on corporate • Stakeholder engagement, including reputation independent external consultants and subject matter experts to advise on reporting and disclosures, and explain the Company’s energy transition pathway What are we doing? Emissions management starts at the subsurface GOVERNANCE Our philosophy of sustainable reservoir management is key in reducing our upstream carbon intensity. Instead of maximizing production from wells which could irreversibly damage them, we prioritize the long-term health of our reservoirs. This entails producing our fields at low depletion rates to prevent premature water breakthrough, reducing the quantity of produced water. GROWING SOCIETAL VALUE Having undertaken analysis to support this corporate ambition, we know that achieving net zero operational emissions while we grow our business to meet global energy demand will be a huge challenge. Climate change is considered a top corporate priority for us and we assess this on a medium to long-term horizon. Our response to climate change is embedded in our business strategy, supported by our climate change and energy transition framework and our five GHG reduction initiatives. MINIMIZING ENVIRONMENTAL IMPACT Aramco’s industry leading low carbon intensity production performance is the result of almost half a century of careful reservoir management and investment in efficiency, reducing flaring and produced water management. This has yielded an environmental advantage that forms a key pillar of our corporate strategy. We are confident that we can help the world meet its rising energy needs, while reducing emissions from our operations. Climate change risk and mitigation SAFE OPERATIONS AND PEOPLE DEVELOPMENT Our emissions reduction strategy includes investing in low-emission technologies, including CCS, energy efficiency programs and energy mix diversification. We are committed to developing and deploying innovative solutions, optimizing operations, and adopting efficient project designs. What are we doing? CLIMATE CHANGE AND THE ENERGY TRANSITION GHG emissions management OVERVIEW Leading in low carbon intensity operations DATA Using advanced reservoir modeling and real-time data, our geoscientists and engineers steer multilateral wells with maximum reservoir contact to ensure optimum well placement which help minimize water production. Additionally, these wells are equipped with smart completions which enable shutting off when detecting water. Such practices result in superior produced water management and low water oil ratios (WOR). When the production of water is minimized, less energy is required for fluid separation, treatment and disposal. These energy savings result in lower carbon emissions. As a consequence, Aramco’s average WOR is significantly lower than the global average, and hence our upstream carbon intensity is amongst the lowest globally. 23 Diversify Enable What are we doing? Digital twins Our EXPEC Computer Center developed a solution to reduce energy intensity and emissions associated with operating subsurface artificial lift systems, leveraging digital twin technology by optimizing the performance of our electric submersible pumps (ESP). The system was trial tested across 42 ESP lifted wells resulting in a 22% average reduction in power consumption, equivalent to 12 GWh of energy savings during 2022. It is projected that deploying this solution across all fields will result in a 25% average reduction in artificial lift energy intensity at Company level. What are we doing? Aramco Sustainability Report 2022 Targeted GHG reduction Our Yanbu’ Refinery facility successfully obtained the International Sustainability and Carbon Certification under its circular cracker oil initiative. The initiative drives the certification relates to an in-house sustainable circular route to produce circular cracker oil from waste oil to reduce our Scope 2 GHG carbon footprint. During 2022, we have made progress toward achieving our 2035 and 2050 ambitions across our five identified levers: energy efficiency, reduced methane and flaring; increased renewables; CCS; and offsets to address emissions we cannot reduce or capture. For more information on our 2022 efforts and impact, please refer to pages 26 and 27. We have also been conducting site-level bottom-up assessments of what it would take to decarbonize our assets. Once this is completed in 2023, we will update our decarbonization strategy in the next report. GHG emissions The Company’s GHG emissions management program monitors direct (Scope 1) and indirect (Scope 2) emissions from wholly-owned operated assets, in a manner consistent with the GHG Protocol. Despite increased hydrocarbon production by 10% in 2022, total emissions (Scope 1 emissions and Scope 2 emissions) from the Company and its operationally controlled entities increased by only 6% (71.8 MMtCO2e in 2022 versus 67.8 MMtCO2e in 2021) compared to the previous year. This was enabled by more efficient operations and a reduction in flaring intensity by 17% compared to the previous year due to improved operations of the Company’s in-house flare gas recovery systems across several facilities. For more information on our flaring, please refer to page 28. 1. 2018 was the first year our GHG inventory was independently assured. 2. This figure has undergone external limited assurance in accordance to the ISAE 3000 (revised). The assurance report can be found online here. 24 2035 Targeted GHG reduction 67 52 -52 Forecast business-asusual growth 119 -15% (MMtCO2e) 2035 (kg CO2e/boe) Scope 1 and Scope 2 emissions GHG reduction targeted by 2035 722 -15% 2022 By 2035, consistent with the corporate growth strategy in oil and gas production and development of new businesses, particularly hydrogen and liquids-to-chemicals, we forecast our business as usual Scope 1 and Scope 2 GHG emissions for our wholly-owned operated assets will increase to 119 MMtCO2e. Our goal is to mitigate this growth in emissions and reduce our emissions to 67 MMtCO2e by 2035. Scope 1 and Scope 2 emissions upstream intensity: 15% reduction by 2035 8.7 In parallel with our intensity targets, we are aiming to reduce our net annual Scope 1 and Scope 2 GHG emissions from both the upstream and downstream businesses by 52 MMtCO2e from our business as usual 2035 forecast emissions. 2035 GHG emissions targets 10.21 Sustain 2018 Differentiate Our Southern Area Oil Operations won a 2022 Society of Petroleum Engineers Regional Distinguished Corporate Support Award for reducing its emissions by 600,000 tCO2e OVERVIEW This improvement is predominantly driven by energy efficiency, and reduced flaring across Upstream operations due to improved reliability and performance of our flare gas recovery systems (FGRS). In 2022, two new FGRS became operational in both Abu Ali and Qatif central processing facility resulting in estimated annual flared gas recovery of over 1.0 bscf per year. For more details on what we have done during 2022 regarding our progress on our five levers to meet our 2035 interim GHG targets, please refer to pages 26-27. 10.31 10.71 2021 2022 10.63 2020 16.11,2 2022 15.51,2 2021 During 2022, we increased our R&D spend on developing potential solutions that will assist the global energy transition towards a lower carbon emissions future — notably over a 45% increase in sustainable mobility R&D spend and over 380% increase in crude to chemicals R&D spend, reflecting the increasing importance of these areas to our future business. For more details on our R&D spend, please refer to pages 40-41. What are we doing? Vessel Speed Program GOVERNANCE To support the national and corporate GHG reduction aspirations, our terminals instituted the Vessel Speed Program reducing the speed of vessels sailing through the Ras Tanura and Ju’aymah Port to 12 knots from 15 knots. 12 knots was determined as the optimal speed based on vessel engine efficiency, while minimizing impact on customers’ satisfaction or our reliability. It is estimated that the program has reduced the GHG emissions of visiting ships by more than 90,000 tCO2e per year4. DATA Scope 3 — value chain emissions Our focus is on measurement, reporting, and management of those emissions within our direct control. To date, we have not reported Scope 3 emissions from our supply chain or from customers’ use of our products. We are working on supporting the global energy transition towards a lower carbon emissions future through investing in technologies and working with suppliers to integrate ESG performance measures through our iktva program. Our investment in hydrogen, chemicals and renewable energy sources and the increasing share of gas in our production provide products that will support the global energy transition towards a lower carbon emissions future. We continue to invest in a number of product stewardship partnerships and technologies to reduce emissions, this includes research and development into low emissions transport solutions. GROWING SOCIETAL VALUE Aramco is leveraging its R&D and technology initiatives to develop, and implement innovative approaches that could help lower emissions across our industry and have potential application in other industries. 10.3 MINIMIZING ENVIRONMENTAL IMPACT Upstream carbon intensity The Company’s 2022 upstream carbon intensity figure remains among the lowest in the industry at 10.31 kg CO2e/boe (2021: 10.71 kg CO2e/boe). 2020 55.71,2 2022 2021 2020 16.1 SAFE OPERATIONS AND PEOPLE DEVELOPMENT 55.7 18.11,2,3 (kg CO2e/boe) 52.31,2 Upstream carbon intensity (MMtCO2e) 50.21,2,3 Scope 2 emissions (MMtCO2e) CLIMATE CHANGE AND THE ENERGY TRANSITION Scope 1 emissions 1. This figure has undergone external limited assurance in accordance to the ISAE 3000 (revised). The assurance report can be found online here. 2. The Jazan Refinery (our downstream refinery) is excluded from our current GHG reporting because in 2022, it remains in the startup and stabilization phase and is not fully operational. Aramco is working to stabilize the refinery’s operations and complete all necessary reporting configurations before the end of 2023. Reporting on the refinery’s environmental and sustainability elements will commence immediately thereafter, in line with the Company’s commitment to operational transparency. 3. Fadhili Gas Plant is excluded from 2020 GHG emissions inventory. 4. These emission reductions were calculated from real vessel performance data at different speeds and application of the International Maritime Organization guidelines. Prior to implementation, terminals benchmarked the initiative with other worldwide ports, such as Los Angeles and San Diego in the United States, and other countries including Canada and Singapore. 25 Differentiate Sustain Diversify Enable GHG reduction initiatives to 2035 Levers to achieve interim targets Energy efficiency Our plans • Continue to sustain/improve energy intensity To achieve reductions in GHG emissions by 2035, we are focusing on five key levers: energy efficiency across our upstream and downstream assets; further reductions in methane and flaring; increased use of renewable energy sources; CCS; and development or purchase of offsets to help address hard-to-abate emissions. • Optimize co-generation and steam systems Our plans • Commitment to OGCI near zero upstream methane intensity by 2030 and the World Bank’s “Zero Routine Flaring by 2030” initiative • Ensure energy efficiency in new project design • Further enhance LDAR (Leak Detection and Repair) Program • Expand utilization and application of the energy efficiency digital solutions • Unmanned aerial vehicles and satellite methane detection • Initiatives include gas turbine upgrades, boiler and fired heater efficiency improvements Our actions in 2022 • Achieving a 3% improvement in energy intensity performance compared to last year • Implementation of new energy efficiency technologies in our industrial and non-industrial facilities Aramco Sustainability Report 2022 MMtCO2e 1. This figure may not match up due to rounding. 26 • Implementing a Flaring Minimization Roadmap, with site-specific priorities across Aramco operations • Investing in and developing innovative flaring reduction technologies • Enhancing hydrogen blending capabilities for current boilers • Installing high efficiency burners • Introducing new strategies for implementing energy conservation initiatives for more than 700 buildings ~52 • Upstream methane intensity of 0.05% • Introducing a smart flaring monitoring system • 36 organizations received the ISO 50001 certification for their energy management system 1 Our actions in 2022 • Achieved our lowest ever flaring intensity • Using modern low NOx burner technologies to boost fuel efficiency • Upgrading and optimizing operation of boilers, steam traps, and fired heaters GHG reductions targeted by 2035 Flaring and methane 11 MMtCO2e • As part of the LDAR program, surveyed thousands of points across our operations in the Kingdom to minimize methane leaks • Installed two new Flare Gas Recovery Systems at Abu Ali and Qatif Central Processing Facility 1 MMtCO2e OVERVIEW Our plans • Commitment to invest in 12 GW of solar and wind energy by 2030 for our business and also in support of the Kingdom’s National Renewable Program • Installing PV systems to power Aramco’s remote pipelines load • Jubail Hub targeted to store 9 MMtpa, with Phase 1 capturing around 6 MMtpa by 2027 from gas plants at Wasit, Fadhili and Khursaniyah, plus circa 3 MMtpa from other industry sources • Phase 2 will capture around 5 MMtpa and may include CO2 from other facilities Our actions in 2022 • Joint Agreement signed with SLB and Linde to build the Jubail CCS hub • Identified 9 MMtpa of storage capacity with CO2 injection expected by 2027 Our plans • Develop carbon offsets from natural climate solutions • Ambition to plant 300 million mangroves in Saudi Arabia and 350 million mangroves outside the Kingdom by 2035 — expected to remove and offset an estimated 16 MMtCO2e by 2035 • Assist in developing a credible and functioning carbon credit market in the Kingdom for carbon offsets and credits produced in the MENA region MINIMIZING ENVIRONMENTAL IMPACT • Approved installation of renewable systems to power 20 offshore water injection wells at Berri and Zuluf Our plans • Jubail CCS hub to capture up to 11 MMtpa by 2035 — contributing towards the Kingdom reaching its goal of 44 MMtpa of CCUS by 2035 Offsets SAFE OPERATIONS AND PEOPLE DEVELOPMENT Our actions in 2022 • Sudair Solar PV Plant has reached 56% completion — power generation expected to start in Q4, 2024 CCS CLIMATE CHANGE AND THE ENERGY TRANSITION Renewables Our actions in 2022 • Participated, and purchased credits, in the first carbon credit auction held in 2022 through the Regional Voluntary Carbon Market in Saudi Arabia GROWING SOCIETAL VALUE • Captured around 238 MtCO2 from our pilot Hawiyah Natural Gas Plant resulting in a cumulative total of about 1,570 MtCO2 stored in the reservoir, since the CO2 injection started in 2015 GOVERNANCE MMtCO2e 11 MMtCO2e 16 DATA 14 MMtCO2e 27 Diversify Enable During 2022, our flaring intensity fell by 17%, (4.601 scf/boe in 2022 versus 5.51 scf/boe in 2021) due to significant investments, installations and improved operations of our in-house flare gas recovery systems across several facilities and a reduction in routine and non-routine flaring. From April 2022, two new FGRS became fully operational in both Abu Ali and Qatif central processing facility, which will result in an expected annual reduction of 1.5 bscf per year. Substantial investments and developments in innovative flaring reduction technologies continued throughout 2022. These included implementing the Flaring Minimization Roadmap, which has identified priorities across Aramco operations, with every operating facility having a flare minimization plan and targets. Aramco’s operations are monitored in real-time at our Fourth Industrial Revolution (4IR) Center in Dhahran. This has enabled us to achieve near zero routine flaring already. We have maintained a flare volume of < 1% of total raw gas production since 2012. Aramco Sustainability Report 2022 Methane Addressing methane emissions is one of the fastest, most effective ways to slow the rate of global temperature rise. An enhanced Leak Detection and Repair program for the Company’s methane emissions in the Kingdom prioritizes actions at operating facilities. Hundreds of thousands of points are surveyed across our operations to minimize potential methane leaks. We use drones to monitor and measure methane emissions from our operating facilities. In addition to LDAR, we are assessing and deploying remote detection solutions and technologies such as the use of satellite monitoring. Aramco’s upstream methane intensity measures the ratio of our upstream methane emissions for operated assets against the quantity of marketed natural gas. Our upstream methane intensity remained low in 2022 at 0.05% (0.05% in 2021) and is already well below the OGCI ambition to achieve at least 0.20% by 2025. < 1% We have maintained a flare volume of of total raw gas production since 2012 What are we doing? Two technologies In 2022, two technologies were piloted to enhance the management of flaring emissions: • A flaring monitoring system detects flaring performance and optimizes burner feed inputs via cameras equipped with artificial intelligence programs. • We piloted portable ignition systems for on-demand flaring needs, replacing continuous flaring and emissions. 1. This figure has undergone external limited assurance in accordance to the ISAE 3000 (revised). The assurance report can be found online here. 2. The Jazan Refinery (our downstream refinery) is excluded from our current GHG reporting because in 2022, it remains in the startup and stabilization phase and is not fully operational. Aramco is working to stabilize the refinery’s operations and complete all necessary reporting configurations before the end of 2023. Reporting on the refinery’s environmental and sustainability elements will commence immediately thereafter, in line with the Company’s commitment to operational transparency. 3. Fadhili Gas Plant is excluded from our 2020 reporting. 28 2022 2021 4.601,2 5.512 5.972,3 4.60 2020 0.05 (scf/boe) 0.05 (%) 2022 Minimizing flaring Aramco is a signatory to the World Bank’s “Zero Routine Flaring by 2030” initiative and is committed to sharing best practices with industry partners to accelerate global flaring reduction. Flaring intensity Upstream methane intensity 0.05 Flaring of waste gases has long been recognized as one of the most significant contributors to GHG emissions in the oil and gas sector. Aramco has been a pioneer in gas flaring reduction and now has industry-leading methane intensity and gas flaring metrics. 2021 Flaring and methane 0.063 Sustain 2020 Differentiate OVERVIEW Energy efficiency The Company seeks to reduce energy consumption at facilities, design new facilities to be energy efficient, and promote energy efficiency in Saudi Arabia. 146.21 116.61,2,4 2021 2022 112.41,2,3,4 Several initiatives have been planned to improve energy efficiency, including: • Upgrading of simple cycle gas turbines with energy efficient combined cycle systems; • Replacement of older inefficient boilers with highly efficient fast ramp up boilers; and • Implementation of advanced digital solutions to improve energy efficiency performance. At the end of 2022, all our operational facilities have received the ISO 50001 certification for their energy management system (EnMS). EnMS enables our facilities to focus on an ongoing, sustained improvement in energy efficiency, and reduction in greenhouse gas emissions, along with monetary savings as a result of smarter energy utilization and improved energy efficiency. What are we doing? Innovative Energy Project of the Year Award Aramco won the Innovative Energy Project of the Year Award from the Association of Energy Engineers in recognition of implementing the Energy Demand Forecasting Solution in Oil and Gas facilities. The solution was recognized due to its novel machine learning capabilities that accurately forecast energy demand. GOVERNANCE We started an energy efficiency management program in 2000. The program has evolved through the implementation of energy efficiency initiatives such as process improvements, fuel gas optimization, higher co-generation utilization, continuous performance monitoring of significant energy users, reduction in energy for crude oil transportation, and load management of top energy users. in our interconnected co-generation facilities GROWING SOCIETAL VALUE While our reporting boundary has expanded as per footnote 1 below, in 2022, at a Company in-Kingdom level, the energy intensity was 112.9 thousand Btu/boe (a fall of 3% from prior year), which demonstrates continued improvement in our energy efficiency initiatives across our business. 146.2 70.7% MINIMIZING ENVIRONMENTAL IMPACT We are harnessing what would otherwise be waste energy by maximizing the conversion of energy released from the combustion of fuel into power and steam to achieve improved thermal energy efficiency and reduce overall GHG emissions. In 2022, we achieved an average thermal efficiency of 70.7% (70.8% in 2021) in our interconnected co-generation facilities. (thousand Btu/boe) SAFE OPERATIONS AND PEOPLE DEVELOPMENT We analyze the real-time data of the power generated, which allows us to streamline our carbon footprint. As of 2022, we achieved an average thermal efficiency of Energy intensity 2020 Co-generation Highly efficient co-generation plants enable us to produce electricity as a byproduct of our operations and are enabling self-sufficiency in electrical power generation for our own operating plants. We are retrofitting some of our existing plants with co-generation systems to create energy, as well as heat for oil and gas production processes. CLIMATE CHANGE AND THE ENERGY TRANSITION Energy management DATA 1. As we progress on our reporting journey and our controls around ESG data mature, for this metric from 2022 onwards, we have expanded the reporting boundary from Company in-Kingdom to operational control. The 2021 and 2020 figures are at a Company in-Kingdom level only. In 2022, at a Company in-Kingdom level, the energy intensity was 112.9 thousand Btu/boe. 2. The Jazan Refinery is excluded from our reporting because in 2022, it remains in the startup and stabilization phase and is not fully operational. Aramco is working to stabilize the refinery’s operations and complete all necessary reporting configurations before the end of 2023. Reporting on the refinery’s environmental and sustainability elements will commence immediately thereafter, in line with the Company’s commitment to operational transparency. 3. Fadhili Gas Plant is excluded from our 2020 reporting. 4. This figure has undergone external limited assurance in accordance to the ISAE 3000 (revised). The assurance report can be found online here. 29 Differentiate Sustain Diversify Enable Pathways to lower carbon energy Aramco’s strategy is to increase its production of hydrocarbons while seeking to maximize opportunities for lower carbon products. We recognize the need to reduce emissions and support a global orderly energy transition towards a lower carbon emissions future through investing in technologies and offering lower carbon products, such as e-fuels, and working with suppliers, to integrate ESG performance measures through our iktva program. We are researching: Gasoline compression ignition Opposed piston engines Turbulent jet ignition Dilute boost engines For more information on advanced engine technologies see our website Low carbon fuels and transport technologies Achieving sustainable mobility requires collaboration across the value chain to meet consumer demand for affordable, low emission transport. Electric vehicles are fast growing and will play an important role in mitigating climate change when integrated with renewable electricity. However, in the near term, transport electrification alone is unlikely to be adequate to meet global CO2 mitigation goals. This has to be complemented by advanced combustion engines, fuel cell vehicles, and low carbon fuels, including renewable fuels and hydrogen. Sustainable mobility Aramco has around 100 scientists and engineers in four locations across the world working on the challenges of sustainable mobility. Through our global network, we are working to create breakthrough transportation technologies with the goal of improving efficiency that has the potential to reduce emissions — both CO2 and other air pollutants, including NOx and particulates. Aramco Sustainability Report 2022 We are seeking to redesign internal combustion engines, and the fuels that power them including advanced combustion systems, novel engine architectures, and innovative after treatment systems. We have two flagship projects that aim to advance the development of low carbon synthetic fuels, one in Spain and another in Saudi Arabia. Aramco’s low carbon synthetic fuels plan is to combine CO2 captured from industrial processes or directly from the air with green hydrogen and target a CO2 reduction potential of at least 80% on a lifecycle basis. 30 Scan here What are we doing? Demonstrating sustainable fuels through Formula racing Building on our strategic partnership with Formula 1 (F1) to accelerate our engineering excellence and achieve our respective net zero targets, we are working closely with F1 to support their goal of fully switching to sustainable fuels by 2026. In February 2022, Aramco entered into a strategic partnership with the Aston Martin Aramco Cognizant Formula One™ Team to promote the development of highly efficient internal combustion engines to accelerate high performance sustainable fuels and advanced lubricants, making use of the diverse technologies Aramco has developed. Beyond F1, Aramco signed a Memorandum of Understanding with Formula Motorsport Limited to introduce alternative, lower carbon fuels in the Formula 2 and Formula 3 racing championships beginning in 2023. Through this collaboration, we plan to demonstrate the potential of liquid synthetic fuels to reduce emissions both in motorsport and the broader transportation sector. OVERVIEW CLIMATE CHANGE AND THE ENERGY TRANSITION What are we doing? Aramco Ventures and our $1.5 billion Sustainability Fund Aramco Ventures is our venture capital vehicle, that invests globally in innovative startup companies. SAFE OPERATIONS AND PEOPLE DEVELOPMENT Aramco Ventures supports three key elements of Aramco’s overall strategy: • Commitment to innovation and technology leadership. • Supporting our digitalization journey and use of Fourth Industrial Revolution (IR 4.0) technologies. • Supporting the Company’s sustainability ambitions and development of new lower carbon energy solutions. The Sustainability Fund’s focus is on sectors closely aligned with Aramco’s decarbonization and lower carbon energy solutions business strategies, including: • Carbon capture, utilization and storage; • Renewable energy and energy storage; • Nature-based solutions; • Hydrogen and ammonia value chains; • Synthetic renewable fuels, including direct air capture; and • Digital sustainability solutions. Our $1.5 billion Sustainability Fund will be among the largest sustainability focused venture capital programs announced globally, and the largest by any oil and gas producer. It will join Aramco Ventures’ other investment programs: • As a founding member of the OGCI, Aramco participates in OGCI’s Climate Investments Fund. This is a $1 billion fund that includes the participation of 11 major oil and gas companies. It is focused on investments in carbon capture, utilization, and storage, methane emissions reduction, and carbon dioxide emissions reduction in the oil and gas and transport sectors. GOVERNANCE • Energy efficiency technologies; This fund has invested in various companies since inception, with three companies achieving IPO, six reaching “Unicorn1” status, and more than 25 technologies deployed in Aramco. This fund will continue to operate focusing on digital and industrial technology domains. GROWING SOCIETAL VALUE Launched in 2022, Aramco Ventures’ new $1.5 billion Sustainability Fund will accelerate the Company’s progress towards developing and using innovative solutions to address the climate challenge, and represents a major expansion of our sustainability investment activities. MINIMIZING ENVIRONMENTAL IMPACT As we accelerate the implementation of our vision to become the world’s preeminent integrated energy and chemicals company, the breadth of our businesses, operations, and geographic presence offer unique opportunities to pilot and deploy the technologies created within the startup companies we invest in. The Sustainability Fund builds on Aramco Ventures’ existing strategic venturing program, which invests in companies developing technologies with strategic importance to Aramco to accelerate their development and deployment in Aramco’s operations. • Prosperity7, Aramco’s $1 billion diversified growth venturing program invests in disruptive technologies and start-ups outside of the energy sector. The program focuses on investing in highly scalable start-ups in the U.S. and China. The program has made over 25 investments to date. DATA 1. Unicorn companies are those that reach a valuation of $1 billion without being listed on the stock market. 31 Differentiate Sustain Diversify Enable Hydrogen Hydrogen is a primary element in oil and gas, and holds significant potential as a clean, affordable energy that could support emissions reductions in hard-to-decarbonize sectors such as heavy-duty transport, heating, and industrial applications. We believe hydrogen has significant potential to provide a material reduction in GHG emissions, as a global market develops over the next decade. Hydrocarbon’s crucial role in the development of a global hydrogen business Despite the interest and possibility of producing hydrogen from multiple energy sources, in the short and medium term, hydrocarbons will remain the primary feedstock for its production. Hydrogen has the potential to become a tradeable commodity, which opens commercial opportunities for our business over the medium to long term. At the same time, investments in low carbon hydrogen can help foster new technological and industrial development in economies around the world, while also creating skilled jobs. Natural gas and hydrogen Natural gas has the potential to be a viable, cost-effective feedstock for blue hydrogen production. Natural gas is the most used feedstock for hydrogen production today. Aramco Sustainability Report 2022 Aramco is a steering member of The Hydrogen Council, a CEO-led organization that promotes collaboration between governments, industry and investors to provide guidance on accelerating the deployment of hydrogen solutions globally. 32 What are we doing? Blue hydrogen certification In 2022, Aramco and the SABIC Agri-Nutrients Company obtained the world’s first independent certifications recognizing “blue” hydrogen and ammonia production. The certification was granted by an independent testing, inspection and certification agency based in Germany, to SABIC AN, in Jubail, for 37,800 tonnes of blue ammonia and to Aramco’s wholly-owned refinery (SASREF), also in Jubail, for 8,075 tonnes of blue hydrogen. To certify ammonia and hydrogen as “blue” a significant part of the CO2 associated with the manufacturing process must be captured and utilized in downstream applications. Capitalizing on this agreement, we made the world’s first commercial shipment of blue ammonia to South Korea. Differentiate Sustain Diversify Enable OVERVIEW Developing and growing lower environmental impact value chains CLIMATE CHANGE AND THE ENERGY TRANSITION The energy transition offers challenges but also various opportunities for us to diversify our portfolio into new, lower impact value chains, including utilizing hydrocarbons for noncombustion uses, such as non-metallic materials and chemical applications, as well as investment in renewables projects. The materials transition investment gap over the next 15 years for the minerals needed to limit climate change No matter which energy transition scenario plays out, oil demand from the petrochemicals sector is likely to remain robust. In fact, under a net zero scenario, petrochemicals could account for more than half of total global oil demand by 2050. The more intense the transition, the more important petrochemicals will be to the oil and gas industry, and other industries. Our pursuit of sustainable materials is underpinned by a powerful business case that is driving our world leading chemicals growth ambitions — making our business portfolio even more robust. GOVERNANCE For example, emissions from concrete are projected to total almost four gigatonnes of CO2 by 2050 because of the growth in demand. Meanwhile, the iron and steel sector accounts for more emissions than the whole of road freight, and global demand for steel alone is expected to rise by more than a third by 2050. $2 trillion There is a projected GROWING SOCIETAL VALUE Energy demand is projected to more than double from 79 gigatonnes in 2011 to 167 gigatonnes in 2060. Materials production, use, and eventual disposal already accounts for almost a quarter of all global CO2 emissions. The increase in materials use, even if decoupled from economic growth, will be accompanied by a further rise in CO2 emissions, particularly in hard-to-abateindustries. At Aramco, we see opportunities arising from the materials transition. Steel, concrete and other traditional materials are responsible for significant CO2 emissions. Non-metallic materials, (e.g. polymers) and other carbonbased materials, can provide durable materials at a lower GHG impact with potential use in housing, construction, infrastructure, automotive, and renewables. At Aramco, we are working across them all. MINIMIZING ENVIRONMENTAL IMPACT According to a report issued this year by the Atlantic Council, a net zero energy system will be six times as mineral intensive as its hydrocarbonbased predecessor. However, the supply chains needed to deliver these minerals are significantly underdeveloped and undercapitalized; there is a projected $2 trillion investment gap over the next 15 years for the minerals needed to limit climate change — the world is underprepared for the risk of surging transition-related mineral demand. For example, one megawatt of installed renewable energy capacity utilizes eight to 11 tonnes of petrochemicals-based materials. SAFE OPERATIONS AND PEOPLE DEVELOPMENT Such actions provide us with commercial opportunities and help improve our resilience to changes in customer demands caused by the energy transition. To achieve an accelerated materials transition, cutting-edge R&D, innovation, and the necessary investments are essential. DATA 33 Differentiate Sustain Diversify Enable Liquids-to-chemicals Our 2020 acquisition of a 70% stake in SABIC brought together two global companies committed to growth and value creation in petrochemicals. This propels our strategy to convert up to 4 million barrels per day of liquids-to-chemicals. More advanced, more sustainable materials would strengthen the power of our net zero ambition and our chemicals’ strategies. To earn a larger share of the mat…

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