Climate Change Data

Environmental Metrics

ESG Focus Areas

• Air Emission
• Occupational Health and Safety
• Development and Training
• Labour Standards
• Intellectual Property

Environmental Achievements

• Reduced carbon dioxide emission/RMB10,000 of revenue by 18% compared with 2020 levels in 5 years.
• Reduced comprehensive energy consumption per RMB10,000 of revenue by 15% compared with 2020 levels in 5 years.
• Reduced non-hazardous waste generation by 10% compared with 2021 levels in 10 years.

Social Achievements

• Implemented HSE management system meeting ISO 45001:2018 standard.
• Provided 88,867 hours of training to 2,235 employees (average 39 hours/employee).
• No material production safety incidents, major fire incidents, major traffic fatality accidents, or cases of collective coronavirus infection.

Governance Achievements

• Complied with all code provisions as set out in the Corporate Governance Code throughout the year ended 31 December 2022.
• Established a whistleblowing system for reporting suspected fraud, corruption, and other malpractice.
• No litigation cases seriously violating relevant anti-corruption laws and regulations with significant impact on the Group.

Climate Goals & Targets

Environmental Challenges

• Limited power supply in factories and project sites due to high temperature and drought, affecting normal production.
• Major oilfield customers adjusting their business structure and reducing investment in traditional oil and gas exploitation, resulting in decreased revenue.
• Government potentially imposing laws and regulations regarding carbon emission restrictions or carbon tax, affecting production and operating costs.

Mitigation Strategies

• Installing energy storage and new energy power generation devices to maintain production under extreme conditions.
• Deploying in new energy and relevant equipment manufacturing industry, and proactively participating in the comprehensive integration and development of oil and gas and new energy in domestic and overseas oilfields.
• Applying energy-saving equipment, using clean energy, reducing carbon emissions, and promoting the electrification of oil and gas exploitation to reduce carbon emissions by customers.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier assessments based on qualifications, productivity, technology, performance, and quality management.
• Safety, Fire and Environmental Protection Agreement.

Climate-Related Risks & Opportunities

Physical Risks

• Continuous high temperature and drought, limited power supply

Transition Risks

• Market risk: Major oilfield customers reducing investment in traditional oil and gas exploitation.
• Policy and legal risk: Government imposing carbon emission restrictions or carbon tax.

Opportunities

• Growth in clean and low-carbon natural gas and unconventional gas markets.
• Opportunities in green shale gas exploitation.

Reporting Standards

Frameworks Used: Appendix 27 of the Listing Rules of The Stock Exchange of Hong Kong Limited

Certifications: API Monogram, ISO9001:2015, GB/T19001-2015, API Specification Q1, ISO 45001:2018

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Electric coiled tubing
• First “one-key linkage” automatic machine tool system in China

Awards & Recognition

• Not disclosed