Climate Change Data

Environmental Metrics

ESG Focus Areas

• Green Enterprise Campaign
• Technological Innovation and Intelligent Construction
• Supply of Green Energy and Chemical Products
• Targeted Poverty Alleviation
• Climate Change
• Energy Transition
• Environmental Protection
• Safety Management
• Compliance
• Human Rights
• Social Contribution

Environmental Achievements

• Reduced comprehensive energy consumption per RMB10,000 of output by 0.4% year-on-year
• Reduced total GHG emissions by 0.48%
• Recovered approximately 397 million cubic meters of methane
• Captured 1.26 million tonnes of CO2 and accumulated 3.71 million tonnes of CO2
• Reduced fresh water for industrial use by 1.1% year-on-year
• Reduced solid waste by 5.1% year-on-year
• Increased comprehensive utilization rate of solid waste by 5.7% year-on-year
• 100% of hazardous waste properly disposed

Social Achievements

• Supported targeted poverty alleviation efforts, lifting three poverty-stricken counties out of poverty
• Provided free cataract surgery to 2,376 patients through the Sinopec Lifeline Express Programme
• Invested RMB 190 million in direct financial support for poverty alleviation
• Provided skills training for employees and community members
• Improved employee health and safety with 100% occupational health check-up coverage and 100% safety training coverage
• Achieved “zero death” from overseas security incidents for 12 consecutive years

Governance Achievements

• Established a comprehensive HSSE management system
• Implemented an anti-corruption system with 100% employee coverage in anti-corruption training
• Improved transparency and compliance management system
• Upgraded the Business Information Disclosure System

Climate Goals & Targets

Environmental Challenges

• Policy and legal risks related to climate change and greenhouse gas emission regulations
• Market and technology risks associated with the transition to a low-carbon economy
• Operational and disaster risks from extreme weather events
• Reputation risks from failing to address climate change effectively
• Environmental risks from production activities

Mitigation Strategies

• Developed a low-carbon development strategy
• Strengthened carbon asset management
• Implemented the Energy Efficiency Improvement Plan
• Promoted methane recovery and utilization
• Participated in the construction of carbon emission trading market
• Optimized environmental management system
• Strengthened emergency management command system

Supply Chain Management

Responsible Procurement

• Integrated HSSE Management System, pollutant discharge, and tax compliance into supplier management policies

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions (hurricanes, floods)

Transition Risks

• More rigorous regulations to limit greenhouse gas emissions
• Carbon tax on exports
• Reduced demand for traditional petrochemical products

Opportunities

• Expansion of business in clean energy (natural gas, hydrogen), renewable energy (biofuels, solar, wind), new materials, and new energy vehicle facilities

Reporting Standards

Frameworks Used: UNGC, GRI Standards, TCFD

Certifications: ISO 14001 (GB/T24001)

Sustainable Products & Innovation

• 98# gasoline
• B5 vehicle diesel
• Low-sulphur maritime fuel oil (LSFO)
• Various environmentally-friendly lubricants and tail gas treatment fluids
• Food-grade lubricants

Awards & Recognition

• One second prize of National Technology Invention Award
• Six second prizes of National Science and Technology Progress Award
• Level-A rating in the SSE’s 2018-2019 Information Disclosure Assessment of Listed Companies

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Protection
• Safety Management
• Respecting Human Rights
• Contributing to Society

Environmental Achievements

• Reduced major pollutant discharge
• Lowered industrial freshwater withdrawal
• Shut down and ecologically restored facilities in ecological protection zones
• Improved comprehensive energy efficiency
• Captured 1.29 million tonnes of CO2 in refineries (cumulative total of 5 million tonnes)
• Injected 298 thousand tonnes of CO2 for oil displacement in oil fields (cumulative total of 3.97 million tonnes)
• Recovered 600 million cubic meters of methane (equivalent to reducing GHG emissions by about 9 million tonnes of CO2e)
• Reduced coal consumption for power generation by 1.66 grams of standard coal/kWh year-on-year and standard coal consumption for heating by 0.30 kg/GJ year-on-year
• Generated 4.011 million kWh of photovoltaic power (increased by 41.3% year-on-year)
• Realized industrial production of PBSA biodegradable plastic

Social Achievements

• Established the largest melt-blown fabric production base to address medical supply shortages during the COVID-19 pandemic
• Ensured stable oil and gas supplies during the pandemic
• Successfully lifted all eight designated poverty alleviation counties out of poverty
• Marketed RMB 480 million worth of products from poverty-stricken areas
• Provided over 1,400 job opportunities
• Maintained a 100% vocational training coverage rate with 1,259,800 person-times of training
• Donated RMB 89.63 million to upgrade educational facilities in poverty areas
• Built 575 qualified Drivers’ Homes for truck drivers
• Served over 40 million migrant workers through the Warm Station program

Governance Achievements

• Established an ESG target management mechanism
• Integrated ESG considerations into internal control, risk management, strategic planning, remuneration, and incentives
• Implemented the Sinopec Compliance Management Measures
• Had no major legal compliance incidents
• Strengthened anti-corruption system with a “Big Supervision” structure
• Disclosed over 5.34 million pieces of information through its business information system
• Improved risk management system with 35,081 employees from 119 units participating in risk management training

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting supply chains and operations
• Climate change risks including regulatory changes, market shifts, extreme weather events, and changes in rainfall patterns
• Potential for negative impact on company image if climate strategy and energy transition do not meet stakeholder expectations

Mitigation Strategies

• Launched “100-day overcoming difficulties and creating efficiency” campaign
• Strengthened cooperation with suppliers and partners
• Implemented comprehensive risk management system
• Established a management system and organizational structure for climate actions
• Formulated carbon peaking and carbon neutrality strategy, targets, roadmaps, and implementation measures
• Actively participated in carbon emission market trading pilot programs
• Implemented energy efficiency improvement plan
• Promoted energy transition by expanding natural gas business and developing hydrogen energy industry chain

Supply Chain Management

Responsible Procurement

• Green Material Procurement Management Measures
• Prioritized raw materials, products, and services that conserve resources and minimize environmental impact
• Integrated environmental protection, resource conservation, safety management, and sustainability management into supplier assessment and qualification process

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (hurricanes, floods)
• Changes in rainfall and extreme weather fluctuations
• Changes in average temperature

Transition Risks

• Stringent government measures to limit GHG emissions
• National carbon emission trading market increasing carbon emission costs
• Restrictions on high-energy-consuming and high-carbon-intensity products
• Increased R&D costs and investment in clean energy and emission reduction technologies
• Reduced demand for traditional high-carbon energy products

Opportunities

• Expansion of natural gas business
• Development of hydrogen energy industry chain
• Development of new energy businesses (photovoltaic, biomass)
• Deployment of supporting facilities for new energy vehicles
• Commercialization of CCUS technologies

Reporting Standards

Frameworks Used: Guideline on Environmental Information Disclosure (SSE), Environmental, Social and Governance Reporting Guide (HKEx), UNGC Ten Principles, Global Compact Advanced Communication on Progress, GRI Sustainability Reporting Standards, TCFD recommendations

Certifications: ISO 14000 (46 subsidiaries)

Third-party Assurance: PricewaterhouseCoopers Zhong Tian LLP

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)
• Goal 8 (Decent Work and Economic Growth)
• Goal 1 (No Poverty)

Initiatives contributing to these goals are described throughout the report.

Sustainable Products & Innovation

• PBSA biodegradable plastic
• Environmentally friendly, low-carbon, and high-performance chemical products
• Bio-jet fuel

Awards & Recognition

• China’s Low Carbon Model (10th consecutive year)
• Environmentally and Socially Responsible Enterprise
• Top 50 Targeted Poverty Alleviation Award
• 2020 Golden Responsibility Award - Best Responsibility Achievement Award
• Golden Bauhinia-Outstanding Listed Company
• 2020 Green Development Demonstration Enterprises
• Top Ten “Beautiful China, We Act” Public Engagement Programmes
• Special Contribution to Fight the Pandemic Award
• Fortune 500 China No.1 in 2020
• 2020 Best Practices of Companies Achieving Sustainable Development Goals - UN Global Compact
• CEM Insight Award for Leadership in Energy Management

Environmental Metrics

ESG Focus Areas

• environmental protection
• social responsibility
• corporate governance

Environmental Achievements

• Reduced carbon dioxide emissions by 19.68 million tonnes from 2018 to 2022
• Completed and put into operation China's first million-tonne CCUS demonstration project
• Recovered 1.534 million tonnes of carbon dioxide in 2022
• Reduced annual industrial fresh water withdrawal by 1% or greater year-on-year.
• Implemented 479 energy efficiency improvement projects, saving 946,000 tonnes of standard coal in 2022

Social Achievements

• Maintained zero fatalities for overseas security for 15 consecutive years
• Provided a variety of training for our employees, with 60 million training hours in 2022
• Actively explored distinctive modes of rural revitalisation, providing RMB 211 million and introducing RMB 231 million in rural development support
• Supported the development of specialty agriculture in rural areas, selling over RMB 70 million of quinoa

Governance Achievements

• Revised multiple governance policies to consolidate the institutional foundation for standardised governance
• Deepened the construction of internal control system to continuously improve its effectiveness
• Repurchased shares both domestically and overseas to increase value and shareholder returns
• Formulated and implemented the Sinopec Medium and Long-term Talent Development Plan

Climate Goals & Targets

Environmental Challenges

• Increasing frequency of extreme weather events causing damage to facilities and supply chain disruptions
• Stringent government regulations to limit carbon emissions
• Social concern about climate change reducing demand for high-carbon emission energy products
• Need for continuous investment in R&D for renewable energy and emission reduction technologies

Mitigation Strategies

• Implemented early warning systems and disaster emergency plans
• Promoting green and low-carbon transformation, participating in national carbon trading
• Expanding the supply of clean energy products and services, developing environment-friendly products
• Increasing investment in R&D for low-carbon technologies

Supply Chain Management

Supplier Audits: 2,933 suppliers in 2022

Responsible Procurement

• Code of conduct
• Supplier sustainability requirements
• HSE system certification
• Quality management system certification
• Pollution discharge permits
• Energy management system certifications
• Green product and low-carbon product certifications

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Changes in rainfall
• Temperature rise

Transition Risks

• Government regulations
• Carbon quota system
• Methane emission regulations
• Market shifts
• Reputation risks

Opportunities

• Development of clean energy products and services
• Development of environment-friendly products
• Development of low-carbon processes and technologies

Reporting Standards

Frameworks Used: Guideline for the Self-Regulatory Supervision of Listed Companies of Shanghai Stock Exchange (SSE) No. 1 - Standardised Operation, Environmental, Social and Governance Reporting Guide issued by Hong Kong Stock Exchange (HKEX), Ten Principles of the United Nations Global Compact (UNGC), Global Compact Advanced Communication on Progress, Task Force on Climate-related Financial Disclosures (TCFD), 2021 GRI Universal Standards (GRI Standards), GRI 11: Oil and Gas Sector 2021

Certifications: ISO14000 environmental management system (28 subsidiaries)

Third-party Assurance: KPMG Hua Zhen LLP

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 13 (Climate action)
• Goal 8 (Decent work and economic growth)
• Goal 9 (Industry, innovation and infrastructure)
• Goal 11 (Sustainable cities and communities)
• Goal 12 (Responsible consumption and production)
• Goal 15 (Life on land)
• Goal 17 (Partnerships for the goals)

Various initiatives contribute to these goals through energy transition, emission reduction, rural revitalization, sustainable supply chain management, and community engagement

Sustainable Products & Innovation

• Bio-jet fuel
• Degradable plastics
• Green agricultural film

Awards & Recognition

• Responsible Enterprise in 2022 (12 consecutive years)
• 2022 Corporate Leadership Award
• Chinese Central State-owned Enterprises ESG Pioneer 50
• Chinese Central State-owned Enterprises Responsibility Management Pioneer 30
• Contribution to Sustainable Development Award by 2022 Changqing Awards
• China Low Carbon Model (12 consecutive years)
• The Golden Bauhinia-The Best Listed Company
• 2022 China Corporate ESG Best Social (S) Responsibility Award
• 2022 IACEE Award for Corporate Leadership in Continuing Engineering Education

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Protection
• Social Responsibility
• Corporate Governance

Environmental Achievements

• Reduced comprehensive energy consumption per RMB 10,000 of production value by 2.6% year-on-year.
• Reduced GHG emissions by 23.67 million tonnes from 2018 to 2023.
• Captured 1.749 million tonnes of carbon dioxide (14% increase year-on-year).
• Recovered approximately 874 million cubic meters of methane (4.8% increase year-on-year).
• Comprehensive utilization rate of industrial solid waste reached 90.2%.
• Industrial fresh water intake reduced by 1%.

Social Achievements

• Increased natural gas production by 7.1% year-on-year, reaching a historical high.
• Added more than 3,900 battery charging and swapping stations and 39,600 charging terminals.
• Implemented the Three-year Action Plan for the Development of Charging Networks.
• Number of contractor accidents decreased by about 50% compared to 2022.
• Zero incident of major production safety accidents.

Governance Achievements

• Revised multiple governance policies to further strengthen the foundation of sound governance.
• Further enhanced regulatory compliance and strengthened risk control management and audit supervision.
• Information disclosure received an A-level evaluation from the Shanghai Stock Exchange for the 10th consecutive year.
• No significant risk incident in 2023.

Climate Goals & Targets

Environmental Challenges

• Increasingly frequent occurrence of extreme weather events.
• More stringent laws and regulations to limit carbon emissions.
• Increased carbon emission compliance costs due to the national carbon emission trading market.
• Increased investment needed to improve methane emission monitoring and control.
• Potential constraints caused by carbon peaking and carbon neutrality targets.
• Development of new energy vehicles.
• Increased concerns from stakeholders regarding climate change.

Mitigation Strategies

• Strengthened extreme weather warnings and disaster emergency plans.
• Regularly inspected production and operation facilities.
• Strengthened energy conservation and emission reduction efforts.
• Implemented the Green and Clean strategy.
• Utilized the national carbon trading market mechanism.
• Conducted regular methane emission monitoring and analysis.
• Expanded the supply of clean energy products and services.
• Intensified the development of environmentally friendly products.
• Advanced key technologies such as CCUS.

Supply Chain Management

Supplier Audits: 1,486 on-site inspections in 2023

Responsible Procurement

• Green procurement
• Sunshine procurement
• Business Integrity Commitment
• Compliance Commitment Letter

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Climate pattern fluctuations

Transition Risks

• Stringent laws and regulations on carbon emissions
• National carbon emission trading market
• Control of methane emissions
• EU's carbon tariffs policy
• Market shifts towards green products
• Technological advancements in low-carbon economy

Opportunities

• Policy guidance from the "Belt and Road" initiative
• Regional coordinated development initiatives
• Energy transformation and industrial upgrading

Reporting Standards

Frameworks Used: Guideline for the Self-Regulatory Supervision of Listed Companies of Shanghai Stock Exchange (SSE) No. 1 - Standardised Operation, Environmental, Social and Governance Reporting Guide issued by Hong Kong Stock Exchange (HKEx), Ten Principles of the United Nations Global Compact (UNGC), Global Compact Advanced Communication on Progress, Task Force on Climate-related Financial Disclosures (TCFD), 2021 GRI Universal Standards (GRI Standards), GRI 11: Oil and Gas Sector 2021

Certifications: ISO 14000, ISO 45001

Third-party Assurance: KPMG Hua Zhen LLP

Sustainable Products & Innovation

• Bio-jet fuel
• Biodiesel
• Bio-naphtha
• Degradable plastics
• Lightweight materials for automobiles
• Lithium battery separator material

Awards & Recognition

• China ESG Pioneer Top 100 Listed Companies
• Best Practices in ESG
• Best Practices in Board of Directors
• ESG Pioneer Practitioner
• Contribution to Sustainable Development Award
• China Corporate ESG Rating Industry Movers
• Most Investable Value Award
• China Securities Golden Bauhinia Award for "Best Listed Company"
• The Sixth Annual Most Investable Value Award
• Golden H-share Companies – Best Energy and Resource Companies
• China Corporate Social Responsibility Leaders Index
• National Outstanding Cases of Rural Revitalization Through Consumption Support
• China Low Carbon Model
• Best Poverty Reduction Cases of the 4th Global Poverty Reduction Case Collection Activity
• Golden Bull Award for Public Companies Listed in Hong Kong
• Green Factory (Ministry of Industry and Information Technology)
• Green Factory (China Petroleum and Chemical Industry Federation)
• Typical Case of Health Enterprise Construction