Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate change
• Safety
• Environmental protection
• Employee well-being
• Corporate governance
• Supply chain responsibility
• Internationalization
• Technological innovation
• Cost leadership
• Integration

Environmental Achievements

• Achieved a carbon reduction of 7,515 tons in 2023 by replacing diesel fuel with LNG fuel.
• Reduced carbon dioxide emissions for an output value of RMB10,000 from 0.4471 tonnes in 2022 to 0.4132 tonnes in 2023.
• Energy savings of 25,143.26 tonnes of standard coal in 2023.
• Waste reduced by 12,838.9 tonnes and recycled by 9,234.4 tonnes in 2023.
• 100% qualified rate of exhaust emission and wastewater discharge.

Social Achievements

• Total donation & employee relief fund of RMB2,510,080 in 2023.
• Number of employees participating in volunteer activities: 3,125 person-times.
• 100% of the Company’s staff working in offshore workplaces and fields passed the body check.
• No psychological crisis events occurred in 2023.
• Successfully completed various safety production targets and achieved the best safety performance in the past five years (no liability accidents with death of personnel, no environmental pollution liability accidents of Grade B or above, etc.).
• Improved the comprehensive quality and duty performance ability of cadres and talents.

Governance Achievements

• Included in the “Pioneer 100 of ESG-Listed Companies in China” and the “Constituent of Hang Seng (China A) Corporate Sustainability Benchmark Index” for the twelfth consecutive year.
• Won multiple awards including “Tianma Award for Investor Relations”, “ESG Golden Bull Award”, “Excellent Management Team of Listed Companies in China”, etc.
• Improved corporate governance system and governance capacity.
• Strengthened risk management and control of operating matters and ensured stable cash flow.

Climate Goals & Targets

Environmental Challenges

• Market competition risk due to global inflation, tense financial environment, and geopolitical conflicts.
• Health, safety, and environmental risks due to increased government supervision and international operation complexities.
• Exchange rate risk due to holding US dollar debt and conducting business in multiple currencies.
• Risk of impairment of assets due to fierce competition among oilfield service enterprises.
• Accounts receivable recovery risk due to expanding markets and dealing with high-risk customers.

Mitigation Strategies

• Improved legal construction, internal control compliance, and risk management institutions.
• Revised and publicized risk management systems to improve reporting and response mechanisms.
• Strengthened risk control information system and enhanced data sharing and analysis.
• Implemented a comprehensive management system with integral quality, health, safety, and environmental protections.
• Established a full-coverage safety and environmental protection responsibility system.

Supply Chain Management

Supplier Audits: 8,782 suppliers examined as qualified in 2023

Responsible Procurement

• Green procurement
• Green logistics and warehousing
• Supplier capacity building
• Resource sharing and recycling

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters such as typhoon, rainstorm and flood

Transition Risks

• Government policies promoting green transformation increasing compliance costs.
• Rapid technology development and iteration increasing costs of low-emission technologies.
• Market pressure due to customer preference for low-carbon technologies.

Opportunities

• Development of energy-efficient products and technologies.
• Exploration of emission reduction technologies such as CCUS.

Reporting Standards

Frameworks Used: GRI Standards, UN Global Compact’s 10 Principles, The Environmental, Social and Governance Reporting Guide (Hong Kong Stock Exchange), Self-Regulatory Supervision Guidelines for Listed Companies No. 1 (Shanghai Stock Exchange), Guide for Corporate Social Responsibility Report of China (CASS-ESG5.0), TCFD Recommendations

Certifications: ISO 9001, ISO 14001, ISO 45001, DNV quality, health and environmental protection certifications

Sustainable Products & Innovation

• LNG powered vessels
• CO2 intelligent wormlike micelle gel geological storage agent
• Oil-based drilling cuttings treatment equipment
• Domestic Sewage Treatment Device for Drilling Rigs

Awards & Recognition

• 2023 China Business Top 100 Enterprises Award
• 14th Tianma Award for Investor Relations
• ESG Golden Bull Award Carbon Neutral Top 50
• Excellent Management Team of Listed Companies in China
• Special Contribution Award for Corporate Governance