Climate Change Data

Environmental Metrics

ESG Focus Areas

• Green Energy Transition
• Carbon peak and Carbon neutrality
• CCS/CCUS
• Offshore wind power
• Rural revitalization

Environmental Achievements

• Utilized green electricity on a large scale on offshore platforms for the first time (expected 186 million kWh during the year)
• Enping oilfields CCS/CCUS demonstration project progressed
• Jointly launched China’s first large-scale offshore CCS/CCUS hub research project in Daya Bay
• Started construction of Wenchang floating wind power demonstration project

Social Achievements

• Continued to promote rural revitalization, focusing on employment, education, medical care, infrastructure, industrial development, living environment, and farmers' income

Governance Achievements

• Complied with all code provisions set out in Part 2 of Appendix 14 to the Listing Rules of Stock Exchange
• All Directors confirmed compliance with the Company’s Code of Ethics and the Model Code

Climate Goals & Targets

Environmental Challenges

• Complex international environment
• Fluctuations in crude oil and gas prices
• Geopolitical pressure
• Climate change and environment policies
• HSSE risks
• Risk of changing international political and economic factors
• Risk of industry policy changes
• Risk of climate change and environmental policy changes
• Risk arising from volatility in crude oil and natural gas prices
• Risk arising from increasing market competition
• Risk of deviation between forward-looking judgments of oil and gas prices and the actuality
• Risk that the anticipated benefits from mergers and acquisitions and disposals may not be realized
• Risk of limited control over our investments in joint ventures and our joint operation with partners
• Risk of high concentration of customers
• Risk of high concentration of suppliers
• Risk from irrealizable undeveloped reserves
• Technology development and deployment risk
• Network security and IT infrastructure damage risk
• Risks to business and operations in Canada
• Exchange rate risk
• Risk of foreign exchange control
• Risk of related party transactions
• Risk of violating anti-corruption, fraud, money laundering and corporate governance and other laws and regulations
• Risk of violating laws and regulations related to data security

Mitigation Strategies

• Vigorously increased reserves and production
• Advanced construction of major projects
• Implemented technological innovation
• Developed in a green and low-carbon manner
• Enhanced quality and efficiency to reduce costs
• Strengthened operation management and enhanced operation efficiency of the overseas assets
• Strengthened risk management, and improved the profitability of the overseas projects
• Accelerated its pace of scientific and technological innovation
• Accelerated the construction of a green and low-carbon production system
• Actively explored a new model of offshore “negative carbon emission” industry
• Actively follows the trend of energy transition
• Maintained its edge of cost competitiveness through keeping effective control over cost
• Established the risk management system to identify, analyze, evaluate and respond to risks

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IAS 34, HKAS 34

Third-party Assurance: Ernst & Young

Environmental Metrics

ESG Focus Areas

• Low Carbon Development
• Health, Safety and Environmental Protection
• Corporate Citizenship
• Human Resources

Environmental Achievements

• Reduced carbon emissions by over 440,000 tons through green electricity substitution.
• Achieved full recovery and utilization of flare gas with a capacity of over 50,000 cubic meters per day.
• World’s first semi-submersible “double-hundred” deep-sea floating wind power project started operation, supplying over 14 million kWh of green electricity.
• China’s first offshore CCS demonstration project was officially put into operation.

Social Achievements

• Invested RMB158.00 million in external donations and public welfare projects.
• Implemented 33 assistance projects for rural revitalization.
• Implemented over 50 charitable and public welfare projects overseas.
• As of the end of 2023, the Company had a total of 3,732 female employees, accounting for 17% of its total workforce and 17% of its senior and middle management.

Governance Achievements

• Honored with awards such as “Best Listed Company”, Asset ESG Corporate Award “Gold Award”, and “Hong Kong Stock Golden Bull Award”.
• Complied with all provisions in the “Corporate Governance Code”.

Climate Goals & Targets

Environmental Challenges

• Volatility in oil and gas prices.
• Increasing market competition.
• Climate change and environmental policy changes.
• HSSE risks.
• Risk of deviation between forward-looking judgments of oil and gas prices and the actuality.
• Risk that the anticipated benefits from mergers and acquisitions and disposals may not be realized.
• Limited control over investments in joint ventures.
• High concentration of customers and suppliers.
• Irrealizable undeveloped reserves.
• Technology development and deployment risks.
• Network security and IT infrastructure damage risks.
• Risks to business and operations in Canada.
• Exchange rate risk.
• Risk of foreign exchange control.
• Risk of related party transactions.
• Risk of violating anti-corruption, fraud, money laundering and corporate governance laws.
• Risk of violating laws and regulations related to data security.
• Risk of sanctions.

Mitigation Strategies

• Established a risk management system covering design, implementation, monitoring, assessment and continuous improvement.
• Integrated ESG risk management into normal risk management.
• Strengthened the implementation of production safety responsibilities.
• Strengthened cost control and continued to consolidate cost competitive advantage.
• Actively explored new suppliers to ensure supply adequacy and foster competition.
• Implemented measures to reduce costs and enhance efficiency.
• Established procedures for identifying, handling and disseminating inside information.
• Established whistleblowing policy and system.
• Formulated the Compliance Manual for Entities and Employees, the Policy for Compliance Management and other policies.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons, sea ice, oil spills, gas leaks

Transition Risks

• Carbon emission policies, energy transition

Opportunities

• Expansion of natural gas business, offshore renewable energy projects

Reporting Standards

Frameworks Used: IFRSs, HKFRSs

Certifications: Null

Third-party Assurance: Ernst & Young

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Best Listed Company
• Asset ESG Corporate Award “Gold Award”,
• Hong Kong Stock Golden Bull Award