PGPIC’s Journey Toward Sustainable Development
Since the introduction of the Sustainable Development Goals (SDGs) in 1992, governments and, consequently, businesses across the world have sought solutions to reconcile economic growth with the principles of sustainability. A deeper understanding of these goals has led to significant transformations in business models to ensure that economic development aligns with sustainable practices.
At the Persian Gulf Petrochemical Industries Company (PGPIC), the 17 Sustainable Development Goals have been embraced as guiding principles embedded across all operational and strategic processes.
Despite the obstacles and constraints imposed by international economic sanctions, PGPIC has continuously strived to advance development by aligning with global best practices in sustainability. This commitment is reflected in a wide range of initiatives, including:
- Strengthening domestic capabilities to support national resilience,
- Contributing to economic stability and improving livelihoods,
- Injecting foreign currency into the domestic economy through exports,
- Fostering a competitive business environment,
- Job creation and human capital development,
- Appointing and empowering local talent in executive and operational roles,
- Establishing development infrastructure for local communities in special economic zones,
- Ensuring equality and eliminating gender and ethnic discrimination in recruitment and leadership appointments,
- Treating and reusing industrial wastewater within production cycles,
- Developing policies to generate water from renewable marine sources and utilizing treated municipal wastewater in production processes,
- Designing and executing decarbonization projects to combat climate change, and
- Facilitating the export of products in alignment with international market standards.
These efforts, driven by the dedication of competent managers and hardworking personnel, along with continuous engagement with shareholders and stakeholders, embody PGPIC’s unwavering commitment to sustainable development and to building a better future for both the global community and our beloved Iran.
Sustainable Development and War
The relationship between war and sustainability is complex and deeply intertwined. While war inflicts devastating consequences on the environment and human well-being, sustainable development practices can contribute to building a more peaceful and resilient world. Addressing the root causes of conflict and promoting sustainable development are essential steps toward creating a more just and enduring future for all.
War significantly hampers sustainability efforts by damaging ecosystems, placing pressure on natural resources, and disrupting social and economic structures. In contrast, sustainable practices can play a pivotal role in preventing conflict and fostering peace by tackling root causes such as resource scarcity and social inequality.
Water contamination, emissions and air pollution, increased greenhouse gas output, deforestation, poverty, hunger, famine, declining health and hygiene standards, economic downturns, social disruption, inequality, humanitarian crises, and the absence of international community engagement and humanitarian action—these are among the many challenges that threaten the path to sustainable development.
PGPIC’s Measures to Safeguard Sustainability During Conflicts
The war in Ukraine has served as a stark reminder of the profound impact armed conflicts can have on the 17 Sustainable Development Goals (SDGs) and the environment—offering critical lessons for governments and industries alike. The destruction of ecosystems, contamination of water resources, restricted access to energy, poverty, damage to infrastructure, harm to human life and settlements—these are only a few of the far-reaching consequences of failing to realize the SDGs.
In response to such realities, the Persian Gulf Petrochemical Industries Company (PGPIC) has adopted a proactive strategy to preserve sustainability in times of war and conflict. Central to this approach is the identification of potential wartime risks and their impacts on facilities, infrastructure, personnel, and production—followed by the development and implementation of short-, medium-, and long-term mitigation actions. Key risks and corresponding actions include the following:
- Development of a Business Continuity Plan (BCP):
A comprehensive strategy that outlines how to maintain or quickly resume critical production operations during and after a disruptive event. As a preventative document, it defines response and recovery procedures for various disturbances such as natural disasters, cyberattacks, or supply chain disruptions. The primary goal is to minimize operational downtime, protect personnel and assets, and reduce financial and reputational damage.
- Establishment of a Disaster Recovery Plan (DRP):
This plan anticipates potential crisis scenarios, outlines response protocols, ensures data backups, and assigns clear responsibilities during emergencies. Proper execution of the DRP helps maintain the continuity of essential operations with minimal interruption and ensures that customer services remain stable and reliable.
- Implementation of Preventative Measures in Line with Emergency Response Protocols (ERP):
In alignment with international and national safety standards, tailored ERP guidelines have been developed for each production unit, based on the nature of their chemical products. These measures aim to prevent explosions, chemical spills, toxic leaks, and the release of hazardous gases in emergency situations.
- Human Capital Considerations:
PGPIC prioritizes its workforce during crises by facilitating remote work environments, issuing early salary payments, enhancing employee training, and raising awareness of emergency procedures.
- Deployment of Preventative and Protective Systems:
Installation of risk mitigation technologies and safety systems across facilities in accordance with national and global regulations to proactively address potential hazards.
- Crisis Management Readiness:
Activation of fully prepared crisis response teams across all subsidiary companies to ensure rapid and coordinated action during emergencies.
In line with global best practices, one of the most strategic sustainability initiatives during wartime involves ensuring access to renewable energy sources in scenarios where conventional energy supplies may be disrupted. To this end, PGPIC has established Persian Gulf Renewable Energy Company and has approved the development of 5,000 megawatts of solar and wind energy capacity—marking one of the most significant environmental projects undertaken to ensure long-term sustainability and energy resilience.
Air Pollutant and Emissions Management
Greenhouse Gas Emissions
In accordance with IPCC guidelines and directives issued by the Ministry of Petroleum, greenhouse gas (GHG) emissions are calculated on an annual basis in terms of CO₂-equivalent. These calculations have been conducted for three consecutive years using the PICARS software, as mandated by the Ministry of Petroleum.
Emissions are reported under two categories:
- Direct emissions (Scope 1)
- Indirect emissions (Scope 2)
The methodology excludes Scope 3 emissions, which encompass other indirect emissions along the broader value chain.
The reported figures represent the sum of Scope 1 and Scope 2 emissions. The majority of direct emissions stem from combustion processes, while indirect emissions are exclusively attributed to electricity consumption, sourced either from internal utilities or the national power grid.
As new production units have come online and overall output has increased, a corresponding rise in total emissions has been observed.