Mubadala Energy lowers 2025 greenhouse emissions by 30.9%

Mubadala Energy reduced Scope 1 and Scope 2 greenhouse gas emissions from its operated assets by 30.9 per cent in 2025, while cutting emissions and flaring intensity across its portfolio.

The Abu Dhabi-headquartered company said in its 2025 Sustainability Report, published on Wednesday, that average emissions intensity fell by 12.4 per cent and flared gas intensity declined by 33.9 per cent across its operated portfolio.

Mubadala Energy attributed the environmental gains to operational improvements, continuing decarbonisation initiatives and the divestment of its Ruby asset in Indonesia in August 2025. The company said the measures formed part of its effort to combine growth with tighter environmental, social and governance controls.

Adnan Bu Fateem, acting chief executive of Mubadala Energy, said the global energy sector was entering a period shaped by rising demand, geopolitical uncertainty, affordability concerns, energy security and sustainability pressures.

“Under the theme ‘Energizing the Next Chapter’, our 2025 Sustainability Report reflects how we are aligning responsible growth with continued ESG progress,” Bu Fateem said.

He said the company reduced emissions intensity during the year, maintained zero spills and zero fatalities since inception, strengthened ESG governance and continued investing in employees and young talent.

Scope 1 covers direct emissions from sources a company owns or controls, while Scope 2 accounts for indirect emissions associated with purchased electricity, steam, heating or cooling. Emissions intensity measures greenhouse gas output relative to production, allowing performance to be compared even when operating volumes change. Flaring intensity similarly measures gas burned at production facilities against output, making it a key operational indicator for oil and gas producers seeking to limit routine flaring and associated carbon dioxide emissions across changing production levels.

The latest figures follow sharp improvements reported for 2024, when Mubadala Energy said Scope 1 and 2 greenhouse gas emissions from operated assets fell 36.5 per cent and average emissions intensity dropped 55 per cent. Flaring intensity was down 12.8 per cent that year, even though absolute emissions from flaring rose as production activity increased.

The 2025 report also highlighted the company’s safety record. Mubadala Energy said it had maintained zero fatalities and zero spills since inception, while continuing employee development programmes that delivered an average of 8.95 training days per employee during the year.

Women accounted for 32 per cent of the workforce in 2025, up from 28 per cent in 2024. Female representation in middle management rose more sharply, reaching 28 per cent from 18 per cent a year earlier. The company said its workforce comprised employees from 38 nationalities.

Mubadala Energy also invested more than Dh2.3 million in community programmes during 2025. It said its social initiatives had reached more than one million people over the past decade, with projects spanning education, community development and environmental programmes.

On governance, the company said it had strengthened its ESG framework and continued assessing alignment with IFRS S1 and IFRS S2 sustainability disclosure standards. Those standards, issued by the International Sustainability Standards Board, are designed to improve consistency in the reporting of financially relevant sustainability and climate risks.

The company also reported no data breaches for a seventh consecutive year, extending a record it highlighted as part of its governance and information-security performance.

Mubadala Energy is wholly owned by Mubadala Investment Company and has operated and non-operated assets across 10 countries. Its portfolio is weighted towards gas, which accounts for about 70 per cent of the business.

Working-interest production in 2025 was approximately 385,000 barrels of oil equivalent per day, according to company figures. The portfolio includes upstream oil and gas interests in Southeast Asia, the Middle East and other markets where the company operates through partnerships and direct interests.

The company has positioned gas as a central part of its energy-transition strategy, alongside work in areas such as carbon capture and lower-carbon energy. Its sustainability reporting is prepared with reference to Global Reporting Initiative standards and tracks environmental, social and governance performance across its operations.