2016 - sinopecgroup.com · &wfsz espq pg 0jm jt b qspnjtf china petrochemcial corporation...
TRANSCRIPT
2016China Petrochemical Corporation
Social Responsibility Report
Responsibility Creates Value
1
ImprovementThe report is themed with “responsibility
creates value” with main focuses
on practice and achievements in
targeted poverty alleviation and the
“Belt and Road Initiative”-related work.
The report reflected what we did in
2016 in addressing the stakeholders’
expectations from Energy Supply,
Green and Low-carbon Development,
Value Creation, Social Benefit, and
Responsibility Management. It also
presented how we respond to SDGs.
This is the 10th edition of Social
Responsibility Report by China
Petrochemical Corporation (referred
to as “Sinopec”, “the Company” or “we”),
disclosing information about Sinopec
and all its affiliates in performing
economic, social and environmental
responsibilities. The reporting period
is from 1st January to 31st December
2016, with some exception.
2016 Social Responsibility Report
2016 CSR Publications
H5 Report
2016 Social Responsibility Report Highlights CSR in 10 Years Brochure
Report in Video
Sources of Information All information contained in this report
comes from the Company’s official
documents and statistical reports. The
unit for financial data in the report is
the Chinese currency, yuan, unless
otherwise indicated.
Reference Criteria and Reliability AssuranceThe UN Sustainable Development
Goals (SDGs),Global Reporting
I n i t iat ive (GRI ) Guidel ines on
Sustainable Report (G4), IPIECA and
API’s Guide on Sustainability Report
of the Oil and Gas Industry,Guide on
Delivering CSR by SOEs, issued by
State-owned Assets Supervision and
Administration Commission (SASAC),
Guide 3.0 for the Petrochemical
Industry on Compiling CSR Report
by Chinese Enterprises issued by the
Chinese Academy of Social Sciences,
and Recommended Standards and
Implementation Cases on Chinese
Enterprises’ CSR by China Business
Council on Sustainable Development.
Report DesignThe 2016 Social Responsibility Report uses Chinese ink-painting illustrations and real-site photos, integrating Chinese
traditions and international style. The paintings, photos, words, �gures and tables, etc. all together presented Sinopec’s
principles and practices in meeting its social responsibility.
The 2016 Social Responsibility Report Highlights is published in the form of an agenda planner.
The CSR in 10 Years Brochure got its inspiration for design from the famous Chinese painting A Thousand Miles of Rivers
and Mountains. The CSR elements blended with Chinese painting style and presented to the reader a roll of 10-year CSR
achievements.
About This Report
GOOD HEALTHAND WELL-BEING
REDUCEDINEQUALITIES
ZEROHUNGER
QUALITYEDUCATION
CLEAN WATERAND
SANITATION
NOPOVERTY
INDUSTRY,INNOVATION
ANDINFRASTRUCTURE
SUSTAINABLE CITIESAND
COMMUNITIES
Focus one: Poverty Alleviation & Building Well-o� Society
PARTNERSHIPSFOR THE GOALS
Focus two: Powering “Belt and Road Initiative” & Pursuing Common Prosperity
AFFORDABLE ANDCLEAN ENERGY
INDUSTRY,INNOVATION
ANDINFRASTRUCTURE
Energy Supply: Promoting Sustainable Development
LIFEBELOW WATER
AFFORDABLE ANDCLEAN ENERGY
LIFEON LAND
CLIMATEACTION
Low Carbon: Building Eco-system
PARTNERSHIPSFOR THE GOALS
DECENT WORK AND
ECONOMIC GROWTH
RESPONSIBLECONSUMPTION
AND PRODUCTION
GOOD HEALTHAND WELL-BEING
GENDEREQUALITY
PEACE,JUSTICEAND STRONGINSTITUTIONS
Value Creation: Partnering for Win-Win
SUSTAINABLE CITIESAND
COMMUNITIES
PEACE,JUSTICEAND STRONGINSTITUTIONS
Social Contribution: Shared Bene�t
Key Items SDGs
Compiling Process
Phase 1
Phase 2
Phase 3
Benchmarking study
Materials collection
Report �nalization External review Report launch
Report compiling Report design Stakeholders consultation
Substantial issues analysis Kick-o� meeting
About This Report 01
2007 Corporate Social Responsibility Report
2008 Corporate Social Responsibility Report
Corp
ora
te S
ocia
l Resp
onsib
ility Report
Supply Responsibility
Social Responsibility
Employee Development Responsibility
HSE Responsibility
China Petrochemical Corporation 2008 Corporate Social Responsibility Report
About This Report
This report has been prepared in accordance with the Sustainability Reporting Guidelines (G3) issued by the Global Reporting Initiative (GRI), the Oil and Gas Industry Guidance on Voluntary Sustainability Reporting compiled by the International Petroleum Industry Environmental Conservation Association (IPIECA) and American Petroleum Institute (API). Abiding by the principles of truthful and objective, the report collects important information of the company in fulfilling the responsibilities in economy, environment and social responsibilities and provides related data in the appendixes. In order to provide convenience for statement and reading, “China Petrochemical Corporation” is also expressed by “Sinopec Group” , “Sinopec” , “the Group” , “the Company” and “We” . Thank you for spending your precious time to read this report. We hope to set up a communication platform with you with this report and expect in earnest for your feedbacks, so as to allow us to do a better job. Please visit our website (www.sinopecgroup.com) to read or download this report.
Welcome for your feedbacks: Address: 22 Chaoyangmen North Street, Chaoyang District, Beijing, ChinaPostcode: 100728Tel: 8610-5996 9719 / 8610-6444 9083Fax: 8610-5996 9720
Hong Kong
Beijing
Russia
Central Asia
Iran
Middle EastSaudi Arabia
Southeast Asia
Europe
North Africa
Britain
USA
South America
Oversea Offices
Paper for this report is recyclable.
Developing the Company / Creating Value for the Shareholders / Contributing to the Society / Benefiting the Employees
2009
Sinopec’s mission Develop the enterprise, Contribute to the country, Reward the shareholders, Serve the society , Benefit the staff
Address: #22, Chaoyangmen North Avenue, Chaoyang District, Beijing, China
Postcode:100728
Tel: +86(0)10 5996 9719 or +86 (0)10 6444 9083
Fax: +86 (0)10 5996 9810
www.sinopecgroup.com
2009 Corporate S
ocial Responsibility R
eport
Corporate Social Responsibility ReportChina PetroChemical Corporation
2012
2010
2008
2011
2009
2007
Corporate Social Responsibility Report
of Oil is
Integrity, Compliance, Cooperation, Win-Win
Corporate Mission
To Provide Energy for Better Living
Corporate Vision To Build a People-oriented, World-leading Energy and Chemical Company
Core Value People, Integrity, Responsibility, Excellence, Innovation
Social Responsibility ReportChina Petrochemical Corporation
20142014
To Provide Energy For a Better Living
2007 Corporate Social Responsibility Repor
2008 Corporate Social Responsibility Report
Supply Responsibility
Social Responsibility
Employee Development Responsibility
HSE Responsibility
2009Corporate Social Responsibility Report
China PetroChemical Corporation
China PetroChemical Corporation
Corporate Social Responsibility Report
China Petrochemcial Corporation
Address: 22 Chaoyangmen North Street, Chaoyang District, Beijing, China
Post code: 100728
Tel: +86 (0)10 5996 0114
Fax: +86 (0)10 59969810
Website: www.sinopecgroup.com
This Corporate Social Report is released by China
Petrochemical Corporation (referred to as “Sinopec”,
“the Company” or “we”) for the 9th consecutive year,
disclosing information about Sinopec and all its
affiliates in performing economic, environmental and
social responsibilities. The reporting period is from 1st
January to 31st December 2015, with some exception.
Reference Criteria and Reliability Assurance
Global Report Initiative (GRI)’s Guide on Sustainable
Report (Version 4.0)
IPIECA and API’s Guide on Sustainability Report of the
Oil and Gas Industry
Guide on Delivering CSR by SOEs, issued by
State-owned Assets Supervision and Administration
Commission
Guide 3.0 for the Petrochemical Industry on Compiling
CSR Report by Chinese Enterprises issued by the
Chinese Academy of Social Sciences
Recommended Standards and Implementation Cases
on Chinese Enterprises’ CSR by China Business
Council on Sustainable Development
Information Resources and Description
All information contained in this report comes from the
Company’s official documents and statistical reports.
The Chinese currency, yuan, is used as the unit for the
financial data in the report, unless other indicated.
Compiling Process
Total cycle management system was implemented
including analyzing CSR criteria of overseas and
domestic enterprises, benchmarking first-class reports,
analyzing substantial issues and all-level reviewing,
etc. to ensure the objectivity, standardization,
credibility and transparency of information in the report.
We aimed to improve the management level, carry out
effective practice and enhance the awareness of
corporate social responsibility through releasing the
report.
Responsibility Creates Value
Social Responsibility ReportChina Petrochemcial Corporation
Official Weibo Official Wechat
Responsibility Creates Value
Social Responsibility ReportChina Petrochemcial Corporation
2016
2014
2015
2013
2016 Social Responsibility Report2 3
Integrated Business Structure
Diversified Energy Mix
Leading Technology R&D
Stringent Safety and Security
Management
Intensified Environmental
Stewardship
Supplying Clean Products
Cutting Emission and
Energy Intensity
Nurturing the Eco-system
Responsible Care for Employees
Tailor-Made Services
Responsible Value Chain
Best Practice in Overseas CSR
FeatureEPEC, A Platform for Business Eco-system
Tax Contribution
Community Development
Public Welfare
Social Contribution
FeatureThe Gas Station That CaresA Better Road Home
FeatureFulfilling CSR in 10 Years, Embracing New Journey
CSR Model
CSR Management
CSR Communication
CONTENTSEnergy SupplyPromoting Sustainable Development
Low Carbon Building Eco-system
Value CreationPartnering for Win-Win
Social ContributionShared Benefit
CSR Management Pursuing Excellence and Creating Value
About This Report
Chairman’s Address
About SINOPEC
010406
10
14
20233034
18 40 54 74 84
38 52 72 82 92
868790
Outlook94
Performance in Key Areas
Index
Assessment of This Report
Readers' Feedback
Appendix
9698100101
42
4446
51
56626668
76767780
FeatureSupply-side Structural Reform for Growth
FeatureCoping with Climate Change through Carbon Asset Management
Contents 03
96
02
Focus one: Poverty Alleviation & Building Well-off Society
Focus two: Powering “Belt and Road Initiative” & Pursuing
Common Prosperity
2016 Social Responsibility Report4 5
Chairman’s Address
Energy supply: promoting sustainable development. We leveraged our strength of integrated business model and maximized value along the business line by supply-side structural reform, transformation and upgrading of traditional businesses, and diversified energy structure. In 2016, we produced 35.66 million tonnes of oil and 21.6 billion cubic meters of natural gas in China, and 42.95 million tonnes of oil equivalent overseas. We supplied 195 million tonnes of petroleum products and 69.96 million tonnes of chemicals to meet market demand. Non-fuels revenue reached 35.1 billion yuan, up by 41%, and clean and new energy business grew further. As of 21st March 2017, cumulative gas supply from Fuling shale gas �eld had reached 10 billion cubic meters. Geothermal heating capacity increased to 40 million square meters, accounting for 40% of China’s total. In science and technology, we implemented top talents programme and institutional reform to stimulate innovation. We also fastened integration of information technology and system with industrialization, promoted major IT/IS projects and smart factory and smart pipeline construction. Work safety, oil and gas pipeline integrity, and contractors safety management were all strengthened.
Low carbon: building eco-system. To address climate change, we made every effort to save energy, reduce emission and carbon footprint. Fuels quality upgrading was continued with 31 regions were supplied with Sinopec fuels meeting GB-V standard. We were the pioneer to supply Beijing with Jing-VI standard fuels. 418 projects under the “Doubling Energy Efficiency” program were carried out, saving energy equivalent to 565,000 tonnes of coal. The “Clear Water Blue Sky” initiative was concluded, by which we fully meet the national emission reduction targets (2011-2015). We led the industry in carbon asset management with carbon accounting and verification entering the sixth consecutive year and accumulative carbon trade volume and transaction value reaching 6.45 million tonnes and 178 million yuan, respectively. Industrial water consumption dropped by 1.1%, and emissions of COD, NOX, SO2 and ammonia nitrogen decreased by 3.86%, 4.53%, 4.07% and 3.48%, respectively.
Year 2016 marked the beginning of China’s 13th Five-Year Plan period and another year of daunting tasks for Sinopec. International oil prices remained low, and market environment continued to be extremely challenging. We focused on seeking growth while maintaining stability, and implemented the strategy of value creation, innovation, resources integration, open cooperation and low carbon growth in response to the government’s development concept of innovation, harmonization, green, open and sharing. We made further progress in sustainable development.
Wang Yupu
ChairmanChina Petrochemical Corporation
Value creation: partnering for win-win.We strive to protect employee interests, promote employee career development, improve products and services innovation, and enhance customer satisfaction. In 2016, we established China’s first professional customer service system in the petrochemical industry, which significantly improved customer experience, operational efficiency and our brand image. EPEC, China’s largest industrial products e-commerce platform, was online, offering Sinopec’s procurement resources and expertise to the public, and forming a business ecosystem with highly integrated supply chain. We collaborated with suppliers and contractors for win-win partnership and encouraged CSR along the entire value chain. YASREF (Yanbu Aramco Sinopec Refining Co., Ltd.), Sinopec’s �rst overseas re�ning and chemical project and China’s largest investment in Saudi Arabia, started commercial operation in 2016, a milestone in the Company’s effort to implement China’s “Belt and Road” Initiative. We ensured that our international operations meet high HSE standards and contribute to local economic development.
Social contribution: shared benefit. Our tax and fees contribution in the year was 353.6 billion yuan, helping the growth of national economy. We were active in community development programmes, targeted poverty alleviation, disaster relief, supporting education, sponsoring medical aid and public welfare. Our whole-year contribution to designated areas and poverty alleviation was 129 million yuan, and 3,248 cataract patients were cured free of charge through our sponsored Lifeline Express project. Tens of thousands of migrant workers were o�ered free fuel and services at our gas stations through “the gas station that cares, a better road home” programme. Other brands under the Sinopec umbrella, such as “Easy Joy Zhuoma Spring” and “Great Wall Lubricant” also sponsored numerous social welfare programmes.
CSR management: pursuing excellence and creating value. Upholding our mission of “powering better life”, we constantly improve CSR management and incorporate CSR into daily
operations, creating economic, social and environmental value. We stressed on CSR communications, helping stakeholders understand our CSR activities. In 2016, we selected best CSR practices from affiliates and published a book of case studies. In April 2016, Sinopec Open Day, China’s largest ever industrial public day event, attracted nearly one thousand visitors to take a closer look at its operations.
Looking ahead, we shall continue to implement national and corporate strategies, push forward the supply-side structural reform and transformation, tap potential, and stress on innovation, so as to achieve sustainable growth of higher quality and better economic and social bene�t.
Let me conclude by thanking all of you for your support on behalf of the board of directors and employees of Sinopec Group. We look forward to working with you together for better living and a more beautiful China.
Chairman’s Address
Dear friends,Thank you for reading this Corporate Social Responsibility Report. Your comments and advice are highly appreciated.
04 05
2016 Social Responsibility Report6 Energy Supply • Promoting Sustainable Development 7
on Fortune’s Global 500 list in 2016
76Businesses covering countries and regions
1,969.22016 sales revenue
billion yuan
No. 4
China Petrochemical Corporation (Sinopec Group) was incorporated in July 1998 on the basis of the former China Petrochemical Corporation as a state-owned enterprise. Its main businesses span across the hydrocarbon value chain, including oil & gas exploration, production, transportation and marketing; refining and marketing of petroleum products; manufacturing and sales of chemicals, petrochemicals, coal chemicals; petroleum and petrochemical engineering services; technology research, development and licensing. Headquartered in Beijing, Sinopec operates in 76 countries and regions, and has 752,000 employees globally.
Sinopec is an integrated energy and chemical company with world-class scale and capacity. In 2016, we ranked 4th on Fortune’s Global 500 list with a revenue of 1,969.2 billion yuan. We are the world’s largest refiner as well as aromatics producer. We are China’s largest ethylene and synthetic rubber producer, and rank No. 4 and No. 2 respectively globally. We are also China’s largest fuels supplier with extensive marketing network and rank No. 2 globally in terms of number of gas stations.
Sinopec is committed to its mission of “powering better life” and vision of building a world leading energy and chemical company that addresses the needs of all people.
2016 Social Responsibility Report06 About SINOPEC 07
Company Overview
About SINOPEC
2016 Social Responsibility Report8 9
Sinopec Group is a State owned and wholly invested company. China’s State-owned Assets Supervision and Administration Commission (SASAC) of the State Council exercises the shareholder (investor) rights on behalf of the State. The members of the Board of Directors are selected by SASAC and exercise the rights to decision-making, safeguarding investor interests and preserving and increasing the value of State assets. The members of the Supervisory Committee are dispatched to the Company by, and under the leadership of, the State Council. The Committee supervises the performance of the Board of Directors and the executive management team. The executive management is selected, recruited and assessed by the Board of Directors.
We comprehensively assessed risks, identified significant ones of the year, established monitoring and early-warning system and regularly worked out risk management reports. We dynamically improved internal control system, which had been further rooted in and integrated with ERP system to realize online auto-control. A mechanism of internal control with long-term effect was set up, duly searching for and solving problems on a quarterly test basis, which removed management defects and laid a solid foundation for comprehensive risk
management.
In 2016, the number of various audit projects reached 1,181, prompting the Company to save cost, control risks and standardize operations. We issued audit work plan for 2016-2020 and assessment rules for affiliates’ audit work, etc. and won prize from China
Institute of Internal Audit.
Corporate Governance
Board of Directors and Special Committees
Risk Control
There are four external directors and one employee representative director in the six-director board, headed by the Chairman. Under the Board, there are Strategy Committee, Nomination Committee, Remuneration and Assessment Committee, Audit and Risk Management Committee, and CSR Committee providing consulting and recommendations for the Board of Directors.
I n 2016, the Company in i t iated 613 performance supervision projects, retrieving an economic loss of 169 million yuan. 81 affiliates implemented supervision on their HSE performance. In the open and transparent business campaign, 3.79 million pieces of business information were disclosed involving USD 58.52 billion and 1.20 trillion yuan of contract value. Major businesses were also supervised online, creating a clean conduct
environment.
We formulated and implemented policies for legal work including Outline for Sinopec Legal Work in the 13th Five-Year Plan Period and Sinopec Education Work Plan on Knowledge of
the Law 2016-2020.
We enhanced overseas legal risks prevention by publishing investment and trade laws guide covering 55 countries and regions,
including 23 “Belt and Road” countries.
100% of the enterprise’s rules and regulations, economic contracts and significant decisions were audited according to law so as to
guarantee legal operations.
Rule of Law
The Company has 986 legal professionals and all direct affiliates have set up posts of general
counsel.
The Company actively provided training for rule of law respectively in each business segment among the employees, giving more publicity to the State’s laws and corporate regulations by making full use of various forms
of media and websites.
In 2016, 6 direct affiliates and 6 persons were awarded national prizes for their outstanding
work in education of knowledge of the law.
Economic loss retrieved
3.79Business information disclosed
169 million yuan
million pieces
公司治理About SINOPEC08 09
In January 2017, Sinopec work conference held in Beijing
2016 Social Responsibility Report10 Energy Supply • Promoting Sustainable Development 11
Poverty Alleviation & Building Well-o� Society
According to the 13th Five-Year Plan, targeted poverty alleviation requires taking precise measures in identifying targets, allocating capital, arranging right people and plan so as to be e�ective. Measures should be taken to ensure people have enough to eat and wear, and that they have adequate education, health services and housing.
Reducing PovertyShouldering Responsibility
As an SOE, Sinopec answered the government’s call to participate in poverty alleviation programmes.
From 1988 to 2016, Sinopec was responsible for poverty alleviation programmes of 12 counties/cities in Tibet, Qinghai, Jiangxi, Anhui, Hunan, Gansu and Xinjiang.
From 1988 to 2015, Sinopec and its affiliates contributed 1.16 billion yuan to designated areas for poverty alleviation. In 2016, this contribution was 129 million yuan. Sinopec sent 3 persons to aid Qinghai, 16 persons to aid Tibet and 56 persons to aid other areas from 2002 to 2016.
In 2008 and 2011, Sinopec was awarded “Outstanding Organization in Poverty Alleviation Work among the Ministries and SOEs” by the Poverty Alleviation O�ce of the State Council. In 2016, Sinopec’s practice was selected best poverty alleviation practice jointly by China Foundation for Poverty Alleviation and the CSR Research Centre of Chinese Academy of Social Sciences, and published in the Blue Book of Corporate Contribution in Poverty Alleviation (2016).
2016 was an important year in China’s poverty alleviation campaign. Sinopec implemented targeted programmes and helped lift 27,775 people out of poverty.
In 2016, Sinopec donated 29.97 million yuan to 8 Aiding Tibet programmes, improving local people’ living standard and promoting economic and social development.
In 2016, Sinopec designated aiding region was changed from Mangya to Zeku County, Huangnan Tibet Ethnic autonomous prefecture of Qinghai. We plan to invest 30 million yuan from 2016 to 2018 to implement solar photovoltaic power generation and poverty alleviation project,develop the construction of schools and wells project.
O�ering SupportDelivering Prosperity
Aiding Tibet and Qinghai
8 major projects Sinopec sponsored in Ban’ge,
Tibet in 2016
Medical centre
expansion project
Housing project for
55 nomad families
Sponsoring 113
college students
Skill training project lifting
50 nomads out of poverty
Building greenhouse
for family pastures
Sponsoring operation and
maintenance of Ban’ge
Sinopec Primary School
Donation to
trade unions
Farm produce market upgrading project,
enabling 14 families trading in the market
Sinopec actively supported the water
development industry of Tibet to help its
economic growth. In August 2014, Sinopec
signed a strategic cooperation agreement with
Tibet Glacial Water Co., Ltd. to develop the “Easy
Joy Zhuoma Spring” brand. In October 2014,
Sinopec increased its stake in Tibet Glacial
Water Co. to 40%.
Case
1988-2001
Zhuanglang County and
Weiyuan County, Gansu
Ninggang County, Jiangxi
2002-2016
Ban’ge County, Tibet
Mangya, Qinghai (2010-2015 )
Zeku County, Qinghai (2016)
Yuexi County, Anhui, Fenghuang County and Luxi County, Hunan
Yuepuhu County, Xinjiang
Dongxiang County, Gansu (2013-2016)
1988-2016
Yingshang County, Anhui
The venture joined respective strengths of
premium quality water, state-of-art processing
technology from the water company and
extensive marketing and sales network as
well as quality customer base from Sinopec,
successfully introducing the water from the
holy mountains into millions of homes.
Introducing “Zhuoma Spring” water to the market
Focus one
2016 Social Responsibility Report10 Poverty Alleviation & Building Well-o� Society 11
Sinopec focused on building facilities, developing industries, supporting education and skill training, sponsoring medical care, and providing platform in poverty alleviation, e�ectively lifting people out of poverty.
2016 Social Responsibility Report12 Energy Supply • Promoting Sustainable Development 13
In 2016, Sinopec donated 88.73 million yuan to 6 designated counties for 54 poverty alleviation projects, enabling these areas to grow economy and improve living standard.
Infrastructure
5 million yuan for potable water project in Dongxiang County of Gansu, providing
drinkable water for 3,775 people of 683 families in 6 villages and towns
8.7 million yuan for 40 kilometres of road construction
10 million yuan for relocation and housing for 300 families
Building 16.3 kilometres of road and two water conservancy facilities in Yuexi
County of Anhui
450,000 yuan for potable water project in Luxi County, Hunan, providing
drinkable water for 651 people in 127 families, and building 3 kilometres of road
Industrial
development
Sponsoring industrial development in extreme-poverty villages by donating 18
million yuan for development of livestock and 18.24 million yuan for development
of agriculture, and supporting photovoltaic power and courtyard economy
Education
5.06 million yuan, among which 2.11 million yuan was for 1,140 high-score
college entrants and high-school students from poor families, and 2.95 million
yuan was for laptops and library devices in Dongxiang County
Skill development3.6 million for skill development, including driving and automotive repair skills
training
Providing Easy Joy platform for products marketing
The key to poverty alleviation is taking targeted and e�ective measures. Sinopec has been focusing on utilizing the unique conditions of various regions to develop their competitive industries and o�ering the Easy Joy platform for products marketing.
Case
Designated Regions for Poverty Alleviation
Poverty alleviation is not simply building several projects. It involves o�ering our marketing strength to help farmers realize long-term and steady development.
Only in this way can we sustain the practice. Hence, the farmers could become rich and appreciate the Party’s good policy.
—— Wang Yupu, Chairman of Sinopec Group
At that moment, our pilot test of growing red kiwi proved pro�table, but we had no money to expand and increase output. Sinopec o�ered us a helping hand
by sponsoring 2 million. In the past years, our farmers income per capita grew from 1,500 yuan to 20,000 yuan.
——Xiang Yuting, head of red kiwi farmers’ cooperative of Fenghuang
As of today, numerous products are sold through Sinopec Easy Joy convenience stores including Chinese dates from Xinjiang Lvdan Food Co. and home textiles from Anhui Swan Group, and listed in the procurement category by Sinopec, enjoying significant sales growth. Products from various poverty-stricken areas were also promoted at Sinopec headquarters including red kiwi, mutton, etc., increasing income of the designated counties.
”
”
Red kiwi on shelf of Easy Joy convenience stores
Issuing Report to Communicate Progress
On the eve of China’s Poverty Alleviation Day (17th October), the
Sinopec Targeted Poverty Alleviation White Paper was issued on 14th
October 2016. This was the first white paper on targeted poverty
alleviation ever issued by China’s central SOEs.
Album of poverty alleviation
In October 2016, Zhu Weihua, corporate culture
specialist of Sinopec refined products marketing
department and designated person for poverty
alleviation programmes, presented his album of
Sinopec poverty alleviation work, called Hope, at
Photo Beijing 2016, an international photo exhibition
event. In his work, Zhu Weihua traveled to poverty-
stricken areas very often and took photos of children
and the elderly who remained in the rural area while
their adult family members worked away in cities.
The touching moments were so real in re�ecting the
situation in the poor areas and people there were so
eager to change the situation. Now that the poverty-
stricken areas have taken on a new look and are very
promising.
The album of Hope is a manifestation of Sinopec’s
commitment to poverty alleviation and building
happiness for the people.
Case
12 13
Feature video about targeted poverty alleviation
It presented how Sinopec, since
its inception, participated in
designated poverty alleviation
programmes and fulfilled its
social responsibilities, and its
achievements particularly from
2002 to 2016.
Poverty Alleviation & Building Well-o� Society2016 Social Responsibility Report
2016 Social Responsibility Report14 Energy Supply • Promoting Sustainable Development 15
Sinopec actively responds to the “Belt and Road Initiative” by accelerating “going global” strategy, implementing open and cooperative strategy and abiding by the principles of amity, sincerity, mutual benefit and inclusiveness, as well as the principles of achieving shared growth through discussion and collaboration. The goal is to strengthen our win-win partnership with pertaining countries and regions in multiple areas, map out a new and open scenario and jointly realize sustainable development.
Sinopec's presence in countries along the Belt and Road
Europe
(the Baltic)
Europe
Indian Ocean
South Paci�c Ocean
Mediterranean
Southeast Asia
Russia
Central Asia
China
South Asia
Sea
West Asia
Persian Gulf B u i l d i n g s a f e
a n d e f f i c i e n t t r a n s p o r t a t i o n corridors based on key sea ports
China-Indo-China Peninsula Economic Corridor
China-Central Asia-West Asia China-Central Asia-West Asia Economic Corridor
SLB China-Mongolia Economic Corridor
Close ties of China-Pakistan Economic Corridos and BCIM with the Belt and with the Belt and Road InitiativeRoad Initiative
Silk R
oa
d E
cono
mic Belt 21st-Century M
aritime Silk
Road
Scorecard along the “Belt and Road”
Sinopec has been working with countries along the “Belt and Road” in oil and gas exploration and production, oil�eld engineering, re�ning and chemical engineering, international trade and storage, etc. to realize common bene�ts.
In March 2017, witnessed by President Xi Jinping and King Salman bin Abdulaziz Al Saud, Mr. Wang Yupu, Chairman of Sinopec and Prince Saud bin Abdullah bin Thunayan Al-Saud, Chairman of SABIC signed a strategic cooperation agreement in Beijing. The parties agreed to explore the feasibility of jointly conducting projects in both China and Saudi Arabia, aiming to push forward China’s “Belt and Road Initiative” and Saudi Arabia’s Vision 2030. The strategic cooperation agreement will deepen the existing partnership of the two countries and facilitate the implementation of their strategies.
Oil and Gas Exploration
and Production
Since 2001, Sinopec has established investment and cooperation ties with 11 countries
along the “Belt and Road” in oil and gas exploration and production. By the end of 2016,
we had owned and participated in 18 projects, with USD 20.31 billion investment and
98.32 million tonnes of equity oil production.
Oil�eld Service
By the end of 2016, Sinopec had provided over 20 countries along the “Belt and Road”
with oil�eld engineering services including drilling, logging, geophysical prospecting and
surface engineering, which in the meanwhile spurred equipments and materials export.
From 2011 to 2016, accumulatively 745 oil�eld engineering service contracts were signed,
with a total contract value of USD 10.98 billion and completed contract value of USD 7.86
billion.
Re�ning and Chemical
Engineering
From 2011 to 2016, Sinopec signed 72 new international business contracts with 10
countries and regions along the “Belt and Road”, with a total contract value of USD 9.53
billion and completed contract value of USD 7.35 billion.
International Trade
The Company constantly deepens its partnership with countries along the “Belt and
Road” in international trade. From 2011 to 2016, we had accumulatively imported 1.1
billion tonnes of crude oil from 15 countries, exported USD 3.53 billion of chemicals to 64
countries, imported USD 10.23 billion of chemicals from 18 countries, exported USD 260
million of equipment and material and imported USD 91.63 million of equipment and
material.
Re�ning and Chemical
Storage
By the end of 2016, Sinopec had invested in 6 re�ning and chemical storage projects in 5
countries along the “Belt and Road”, with a total investment of around USD 5.2 billion.
President Xi Jinping of the People's Republic of China and King Salman bin Abdulaziz Al Saud of Saudi Arabia jointly inaugurated the re�nery
Enhancing Strategic Partnership with Countries along the “Belt and Road”
By the end of 2016, Sinopec had conducted investment and project cooperation with more than 30 countries along the “Belt and Road”, which have now become Sinopec’s core cooperation areas.
In January 2016, Sinopec’s first overseas refining and chemical project-YASREF went into production, marking China’s largest investment in Saudi Arabia and a flagship of China-Saudi Arabia economic partnership.
Sinopec in
Powering “Belt and Road Initiative” & Pursuing Common Prosperity
Focus two
In June 2016, Chinese President Xi Jinping and his Russian counterpart Vladimir Putin witnessed the signing of cooperation agreements between Sinopec Chairman Wang Yupu and Rosneft CEO Igor Sechin in the Great Hall of the People to deepen the two companies’ partnership. Heads of the two companies met before the signing ceremony to exchange ideas on furthering mutual cooperation.
In September 2016, Sinopec and Rosneft signed within the Eastern Economic Forum a binding Agreement on a joint preliminary study of the project for a gas processing and petrochemical complex in East Siberia.
14 Powering “Belt and Road Initiative” & Pursuing Common Prosperity 15
Saudi Arabia
Sinopec in
Russia
2016 Social Responsibility Report
2016 Social Responsibility Report16 Energy Supply • Promoting Sustainable Development 17
In February 2008, Sinopec International Petroleum Service Company (Sinopec Service) conducted a market research in Kuwait and won its first drilling contract in April 2009. In June 2009, Sinopec Service Kuwait Branch was established and in November, its �rst rig started drilling. It became the largest drilling contractor of Kuwait Oil Company (KOC) in 2014.
SEG plays an active role in pushing forward the “Belt and Road Initiative” and dedicates itself to marketing and branding in Central Asia and Middle East. It joined a consortium to participate in the construction of Kuwait Al Zour Re�nery.
In 2009, Sinopec set up a goal of “Chinese vessels for imported oil and Chinese lubricant for Chinese vessels” and signed long-term strategic oil products supply agreements with four major shipping enterprises. In 2013, Sinopec Lubricant Company’s Singapore Lubricants and Grease Plant was established and went into operation.
In 2013, to explore the Egyptian oil and gas market, SIPC acquired a third of the American independent oil company, Apache’s assets with USD 2.95 billion. The Apache project with its daily output of 350,000 barrels and annual output of around 18 million tonnes of oil equivalent, accounts for 20% of Egypt’s oil and gas production.
Fabricating Bright Landscape along the “Belt and Road”
Sinopec will adhere to the Vision “4322” (4 business lines, 3 strategic zones, 2 trading platforms and 2 innovation centers) echoing the “Belt and Road Initiative”, utilize benefits brought by the Initiative, expand cooperation with neighboring countries and regions, push forward industrial transformation and power the “Belt and Road Initiative” to realize common prosperity.
The acquisition of American First International Oil Co. (FIOC) in Kazakhstan by Sinopec International Petroleum Exploration and Production Company (SIPC) was the �rst overseas upstream project of Sinopec, which began in August 2004. SIPC brands itself as a “responsible and respected” global company in Kazakhstan and enriches the “Belt and Road” implication of peace, friendship and common prosperity.
Sinopec Engineering Group (SEG) was awarded the Atyrau Re�nery aromatics and modernization project. After Sinopec completed upgrading the re�nery as an EPCC (engineering, procurement, construction and commissioning) turnkey project, Kazakhstan was enabled to produce high-octane gasoline since July 2015. The aromatics project would improve Kazakhstan’s crude oil deep processing capacity, chemicals self-su�ciency and increase chemicals export volume.
16 17
Sinopec in
Sinopec in
Sinopec in
Sinopec in
Kazakhstan
Kuwait
Singapore
Egypt
2016 Social Responsibility Report Powering “Belt and Road Initiative” & Pursuing Common Prosperity
2016 Social Responsibility Report18 Energy Supply • Promoting Sustainable Development 19
The national 13th Five-Year Plan: to push forward
the supply-side structural reform, cultivate
emerging industries such as environmental
protection, energy conservation and new energy,
and upgrade traditional industries; to optimize
China’s energy supply mix, enhance energy
efficiency and build a clean, low-carbon, safe and
efficient modern energy system; to highlight
the role of technology in innovation, encourage
independent innovation to power economic and
social development; to fully implement Made
in China 2025 and Internet Plus action plans to
transform production and organization patterns
and realize a new development normal that is
internet-driven, intelligence-oriented, service-
centered and collaboration-approached.
We actively push forward the supply-side
structural reform and forge new advantages in
industrial development to safeguard national
economy and social development in terms
of energy and resources. The Company will
build institutions that inspire innovation, spur
technological innovation and push forward
the integration of information technology
and industrialization to power industrial
sustainable development. Comprehensive safety
management will be enhanced to ensure the
Company’s safe and efficient operation.
Our Actions
Sustainable Development Background
Integrated Business Structure
Diversified Energy Mix
Leading Technology R&D
Stringent Safety and
Security Management
20233034
38 Feature
Supply-side Structural
Reform for Growth
Promoting Sustainable Development
SDGs
Affordable andClean Energy
Industry, Innovation and Infrastructure
Energy Supply
2016 Social Responsibility Report20
Our business scope coversoil and gas exploration and production, oil re�ning,
chemicals production, products marketing and services,international businesses, oil�eld service,and re�ning and chemical engineering.
The Company integrates coordinated development of upstream,mid-stream and downstream businesses to providenational economy with energy and basic materials.
Its energy and chemical products directly or indirectly meetpeople’s clothing, food, housing, traveling and other daily
needs and lift the living standards ofhundreds of millions of people.
Integrated Industrial Chain
Upstream, mid-stream anddownstream value chain
Integrated Business Structure
Oil and Gas Exploration and Production
International Businesses
Oil Re�ning
Chemicals Production
Oil�eld Service, Re�ning and Chemical Engineering
Products Marketing and Services
21Energy Supply • Promoting Sustainable DevelopmentEnergy Supply • Promoting Sustainable Development
2016 Social Responsibility Report22 Energy Supply • Promoting Sustainable Development 23
Diversified Energy Mix
Promote Efficient Exploration and Developmentof Oil and Gas
Sinopec continued to promote efficient exploration, expanded the gas market and promoted the marketing and efficiency enhancement of natural gas to secure supply.
In order to meet the growing energy demand, Sinopec actively promotes the efficient exploration and development of oil and gas, provides quality oil and chemical products, vigorously expands the development of shale gas, coal bed methane, geothermal and other unconventional and clean energy to build a clean, low-carbon, safe and efficient modern energy system.
Following the breakthrough in Shunbei 1-1H Well,
Sinopec made a commercial discovery of Shunbei
Oilfield in the Tarim Basin with rapid evaluation
of integrated exploration and development. All
seven evaluation wells completed realized more
than 100 tonnes per day of light oil. The discovery
expanded Sinopec’s prospect in the Tarim Basin.
The Company aims to build a 1.5 million tonnes of
crude oil production base. As of the end of 2016,
Shunbei 1-1H well had accumulatively produced
36,000 tonnes of crude and 16.58 million cubic
meters of gas.
Significant commercial discoveries in Xinjiang
Case
Domestic Crude Production 35.66
million tonnes
Domestic Gas Production 21.6 bcm,
4.3% increase YoY
Overseas Equity Production 42.95 million tonnes of Oil Equivalent
2016 Index 2014 2015 2016
Domestic Crude Production (ten thousand tonnes) 4,379 4,174 3,566
Domestic Gas Production (hundred million cubic meters) 202 207 216
Environmental Performance
Industrial water use decreased by 1.1% YoY
Chemical Oxygen Demand (COD) of discharged
wastewater decreased by 3.86% YoY
Sulfur dioxide emission decreased by 4.07% YoY
Nitrogen oxide emission decreased by 4.53% YoY
Ammonia nitrogen emission decreased by 3.48% YoY
The Company fulfills its environmental protection
responsibilities by implementing quality upgrading
of refined oil products, "Clear Water and Blue Sky "
Campaign, "Energy Efficiency Doubling" Plan, carbon asset
management, environmental protection products R&D,
and biodiversity conservation
2016
Social Performance
The Company invested 288.63 million yuan in
training to ensure work safety
Employed 752,000 people and achieved 69% of
localization rate in its overseas employees
Sinopec made a total donation of 230 million
yuan, implemented targeted poverty alleviation
actions, and continued to carry out campaigns such
as Sinopec Lifeline Express and “the Gas Station
that Cares, A Better Road Home” to provide migrant
workers with free services during the Spring Festival,
contributing to social harmony
2016
2016 Social Responsibility Report22
Domestic crude production 35.66 million tonnes; domestic natural gas production 21.6 billion cubic meters; overseas
equity production 42.95 million tonnes of oil equivalent
Crude processing volume 237 million tonnes; refined oil products 149 million tonnes; Sinopec-operated station
30,562; Easy Joy convenience stores 25,000
Production of ethylene 11.06 million tonnes, production of para-xylene 4.33 million tonnes; business volume of
chemicals 69.96 million tonnes
Turnover of non-fuel business 35.1 billion yuan
18 terminals capable of handling 200,000-dwt cargos with an annual loading/offloading capacity of 320 million
tonnes; imported crude oil 182 million tonnes
A number of strategic and applicable R&D results achieved along the upstream, mid-stream and downstream value chain
Implemented 357 overseas oilfield service projects and 52 overseas refining and chemical engineering projects
2016
353.6
1,969.2
Taxes and fees contribution
Operating revenue
billion yuan
billion yuan
Value Creation
Economic Performance
To provide the community with steady and quality energy, chemical products and integrated services
2016 Social Responsibility Report24 Energy Supply • Promoting Sustainable Development 25
Accelerating gas in energy mix transformation
Sinopec has accelerated the development of
natural gas in the upper reaches of the Yangtze
River. It has equipped itself with a number of
significant large-scale gas fields such as Puguang
gas field, Fuling shale gas field and Yuanba gas
field, which have secured a solid resource base
for Sinopec's initiative to “power the Yangtze River
economic zone with gas”. The Sichuan to East China
Gas Pipeline continued to provide clear energy
for the economic development of the Yangtze
River economic zone. Tangible benefits have been
delivered to the 6 provinces and 2 municipalities
In 2016, Sinopec carried out various security
measures and developed contingency plans to
ensure the natural gas supply for the winter and
the next spring.
In November 2016, Shanghai Petroleum and
Natural Gas Exchange (SHPGX) was put into
operation, marking a milestone of China's energy
market construction. As a shareholder of SHPGX,
Sinopec will work with all stakeholders to transform
it into a globally impactful oil and gas trading
center.
Yuanba gas field production above 4 bcm
By January 2017, the Yuanba Gas Field, China’s first
ultra-deep and high sour biohermal gas field had
accumulatively produced 4.16 bcm of natural gas.
4 bcm of natural gas can suffice 8 million families’
annual needs or replace the consumption 8
million tonnes of coal. This can reduce annual CO₂
consumption by 4.8 million tonnes, which is the
equivalent of planting 44 million trees, or removing
nearly 3.2 million compact cars from the street for
one year. Its emission reduction in SO2 and NOX is
120,000 tonnes and 40,000 tonnes, respectively.
Record production and sales of Fuling Shale gas field
By 21 March 2017, Fuling Shale Gas Field had
accumulatively supplied a record of 10 bcm of
natural gas, and sales gas reached 16 million cm
per day, equivalent to 32 million families’ daily
gas consumption. In 2016, a Wall Street Journal
feature report recognized Fuling Shale Gas Field as
a manifest of China’s green, low-carbon and clean
energy initiative, which helped raise the nation’s
global image.
Accelerating construction of LNG terminals
In April 2016, Sinopec Beihai LNG terminal started
commercial operation, marking the Company’s
first LNG terminal up and running in southwest
China. Its first phase throughput stands at 3 million
tonnes. Guangxi and the western Guangdong
region will benefit first.
Natural gas is a strategic part of Sinopec corporate strategy in its 13th Five-Year Plan. The Company focused on market
approach to push forward the natural gas industrial chain development, provide society with clean energy and realize
green and low-carbon strategy.
New breakthroughs in natural gas development and application Gas supply along the Yangtze River economic zone
Secure natural gas supply National gas market
as well as over 70 large and medium-sized cities,
thousands of enterprises and more than 200
million residents.
During the 13th Five-Year Plan period, Sinopec will
vigorously promote the development of natural
gas, and strive to double the annual output of
natural gas by 2020 to 40 billion cubic meters. At
the same time, it aims to speed up the construction
of pipelines, facilities and interconnectivity, and
power the Yangtze River economic zone with
natural gas.4.16
By January 2017, the Yuanba Gas Field had accumulatively produced natural gas
bcm
43.08
Since the official production in 2010 ,Puguang gas field had accumulatively produced natural gas
bcm
10
By 21 March 2017,Fuling Gas Field had accumulatively supplied natural gas
bcm
40Strive to double the annual output of natural gas by 2020 to
bcm
The Sichuan to East China Gas Transmission
Zhu Guosi
ChongqingWuhan
XiaoganZaoyang
Ping Dingshan
GuiyangXiangtan
Nanchang
Zhangshu
Ji'an
ShaoguanGuilin
NanningGuangzhouRuili
Xi'an
The Sichuan to Chongqing Pipeline
Case
2016 Social Responsibility Report26 Energy Supply • Promoting Sustainable Development 27
In December 2016, Guangdong Refining &
Chemical Integrated project started to construct.
It is not only the largest under-construction
project of Sinopec, but also the major project of
Guangdong province. Phase I includes 10 million
tonnes per year refining series plants, 800 thousand
tonnes per year ethylene series plants, utilities and
supporting facilities. After completion, the project
will mainly produce refined oil products such as GB-
XI gasoline, diesel, jet fuel, and chemical products
such as polyethylene, polypropylene.
Index 2014 2015 2016
Refining capacity (100 million tonnes per year) 2.69 2.73 2.74
Crude oil processing volume (100 million tonnes) 2.37 2.38 2.37
Service stations 30,538 30,547 30,562
Refined oil products trade volume (10 thousand tonnes) 18,917 18,933 19,484
Refined oil products sales volume (excluding Hong Kong)
(10 thousand tonnes)17,092 17,137 17,270
Optimizing Refining and Marketing Structure
Judging from the market demand, Sinopec adjusts its product mix, reduces ratio of diesel and gasoline, promotes refined oil products quality upgrading, optimizes marketing network and supply, and guarantees stable supply of refined oil products.
China and Kuwait Jointly Invested Guangdong Refining &
Chemical Integrated Project start to construction
This project is one of the significant measures of
Sinopec to implement the strategic deployment
of the CPC Central Committee and State Council
on adjusting and optimizing major productivity
distribution, and to promote supply-side structural
reform and industrial upgrading. It is also a
milestone of Sinopec 13th Five-Year Plan during the
process of building four world-class refining and
chemical bases in Zhenhai, Shanghai, Maozhan
and Nanjing. Moreover, the project will make great
contribution to promoting national petrochemical
industry upgrading, promoting coordinated
development of Guangdong’s economy, society
and region, enhancing the company’s international
competitiveness.
Crude oil processing volume 237 million
tonnes
Average scale of refineries 8.84 million
tonnes per year
Refining capacity 274 million tonnes per
year
Producing 149 million tonnes of refined
oil products
Self-operating 30,562 service stations
Gas filling volume increases 25% YoY
2016
In 2016, Sinopec strengthened operation management, adjusted structure of materials, products and plants, tapped potentialities and increased profit, improved ratio of differentiated and high-end products, replaced imported products to a maximized extent.
Increasing Ratio of High-end Chemical Products
Index 2014 2015 2016
Ethylene production (10 thousand tonnes per year) 1,070 1,112 1,106
Chemical products trade volume (10 thousand tonnes) 6,079 6,287 6,996
Produced 11.06 million tonnes of ethylene , production capacity ranked 1st place in China
and 4th place in the world
Produced 4.33 million tonnes of para-xylene, aromatics production capacity ranked 1st place
globally
Synthetic rubber production capacity ranked 1st place in China and the 2nd place around the
world
Case In 2016, Sinopec made great efforts on developing new energy businesses, including geothermal energy, solar energy, biofuel, charging (battery-swap) stations and power battery, therefore safeguarded energy supply for the economic and social development.
S i n o p e c o p t i m i z e s b u s i n e s s management and development mode, explores emerging business, cultivates new engine, provides new opportunity to enterprises and helps transformation & upgrading, so as to realize the transition from a supplier of refined oil products to an overall service provider.
Sinopec proactively develops the i n d u s t r y o f e n e r g y - s a v i n g a n d environment protec t ion, a iding ecological civilization construction.
In 2015, Sinopec Energy-saving & Environment Protection Engineering and Technology Company (Energy-saving & Environment Protection Company for short) was established in Wuhan. It is the only company focusing on the above-mentioned fields in Sinopec upstream, acting as a support center of policy research and technology on upstream energy-saving & environment protection, an integrated engineering contractor and technological service supplier facing the energy-saving & environment protection market home and abroad. Besides, it is also a great action of Sinopec oilfield service to deepen the reform and adjust industrial structure. It represents a practical step of Sinopec Oilfield Service Corporation in its transformation.
I n 2 0 1 6 , t h e E n e r g y - s a v i n g & Environment Protection Company already provided services in terms of sewage treatment, liquid waste disposal, and environmental technology, which brought it a wide range of recognition.
Cultivating and Exploring Emerging Businesses
Energy-saving andEnvironment Protection
New Energy
The feasibil ity report on 100
thousand tonnes of bio jet-fuel
hydrogenation plant revamping
p ro j e c t o f S i n o p e c Z h e n h a i
Petrochemical Company was
approved and the project was
planned to put into operation in
2018.
By March 21st, 2017, Fuling shale
gas field had accumulatively
supplied over 10 billion cubic
meters of gas, daily gas sales
reached 16 million cubic meters,
which equals to daily gas demand
of 32 million households.
The setting technologies of SRCA
biological jet fuel were developed,
processing package of 100,000
tonnes per year biological jet fuel
SRCA-II industrial demonstration
plant was compiled, and industrial
application in certain appropriate
areas was under research.
By February 2017, Yanchuannan
CBM field, Sinopec's first one,
had accumulatively supplied
over 100 million cubic meters of
CBM to Shanxi Province since its
completion in 2015.
The production and application
of ethanol gasoline was actively
implemented.
B y t h e e n d o f 2 0 1 6 , t h e
accumulat ive geother mal
heating capacity had reached 40
million square meters, accounting
f o r 4 0 % o f t h e c o u n t r y ’s
conventional geothermal heating
areas.
Sinopec selected 9 service stations
as pilots in Beijing, Shanghai,
Guangdong, and Anhui to add
charging facilities. In 2016, Sinopec
cooperated with BAIC BJEV and
other companies to build the first
batch of 10 battery charging/
changing stations in Beijing and
they have all come into service.
Shannxi Baishui 20MW agricultural
light complementary project,
Sinopec's f i rst central ized
photovoltaic power generation
projec t , has been star ted
construction and implemented
23 photovoltaic power generation
projects.
Shale Gas Bio Jet-fuel
Coal Bed
Methane (CBM)
Bio Diesel
Geothermal
Energy
Bio Ethanol
Solar
Energy
Charging
(Battery-swap)
Stations and
Power Battery
Emerging Businesses New Materials
New Energy Non-fuel Business
Energy-saving and Environment Protection
2016 Social Responsibility Report28 Energy Supply • Promoting Sustainable Development 29
Nowadays, engineering plastics becomes a kind
of 3D printing materials with broad application.
As a pioneer of petroleum and chemical industry,
Sinopec explores 3D printing business and creates
conditions for developing 3D printing materials,
through which aiding a sound development for
3D printing industry.
In 2016, Sinopec Yanshan Petrochemical High-tech
Company developed ABS rubber material with
high-performance and PLA material with excellent
performance. The former material directly solves
the warping problem from the very beginning and
it is planned to be used more widely.
Sinopec takes the mode of “commodity + service”, develops both online and offline platforms to promote non-fuel business. In 2016, turnover of non-fuel business was 35.1 billion yuan, up by 41% year on year.
Till the end of last year, Sinopec had opened 25,000 Easy Joy convenience stores nationwide. Thanks to professional operation and management of convenience stores and strengthened marketing
Sinopec implements “Manufacturing Power” strategy with its own merits to cultivate and develop new material industry.
Non-fuel Business
New Material
Case
Participation in 3D printing business
In 2016, Sinopec Baling Petrochemical Company
signed a three-year framework agreement with
Farsoon High-Technology Co., Ltd., the only
demonstration enterprise on intelligent 3D
printing in China. Both sides agreed to develop
elastomer powder material, SLA epoxy resin. It is a
strategic measure of Sinopec Baling Petrochemical
Company, which is beneficial from its creation
advantage on technology, adjustment of mode
and structure, and development of 3D printing
material & special chemical materials.
of its own brand goods, Sinopec had realized 2.88 billion yuan, up by 72% . As a result, new businesses of service stations, such as drinking water, environmental protection goods, insurance, automobile service, fast food, advertisement and so on, were given impetus. Besides, the service function was enriched and comprehensive service ability was enhanced. Throughout the year, 620 stations added automobile service, making the total number reach to 1,247 and the operating
Case
Things about “Easy Joy Convenience Store” in 2016
Sold goods with Sinopec own brands, “Easy Joy Zhuoma Spring”, Yuetaihailong tail gas treating �uid,
Ranyoubao additives, Guoqitianxiang Medlar, etc.
Sold domestic and international goods with local feature, held introduction event of goods from
Qinghai, Inner Mengolia and Hainan, helped local goods be accepted by convenience store
Made full use of advantage in “internet +”, opened Wechat payment, provided convenient service to
customers
Held Easy Joy development forum to support non-fuel business development
Tips
3 D p r i n t i n g i s a k i n d o f r a p i d prototyping technologies, also known as 3D stereoscopic printing technology. When connecting printers with liquid or powder printing materials to the computer, blueprint in the computer can be turned into reality through overlay of the printing materials.
Sinopec actively develops CDM (Clean
Development Mechanism) project. Xianyang
CDM project, registered in 2012, is the first
geothermal heating CDM project in the world;
Xiong County CDM project, registered in
2013, laid a foundation for voluntary entry to
emission reduction trading market.
National Geothermal Energy Center, Sino-
Iceland Geothermal R&D Center, Geothermal
Energy Standardized Technology Committee
are all set in Sinopec Star Petroleum Ltd.
Besides, “2016 China Geothermal International
Forum” was successfully held. Thus, the
development of geothermal industry can be
jointly advanced.
During the 13th Five-Year Plan, Sinopec plans to build 20 more “smokeless city”, promoting new energy
integrated project with the theme of “geothermal +”, and aiming at 120 million square meters increase
of heating and refrigeration areas.
Developing geothermal industry and leading construction of modern “smokeless city”
Drive industrial developmentCompletion of the �rst geothermal heating
CDM project in the world
The largest geothermal energy development
scale in China
Promotion of geothermal + multi clean energy
integrated development
Geothermal energy is a kind of clean and renewable energy, featured by large reserves and broad
distribution, and enjoys a great potential of development and utilization. According to calculation, every
one percentage increase in utilizing geothermal energy, equals to replacement of 37.5 million tonnes of
standard coal, emission reduction of 94 million tonnes of carbon dioxide.
Basing on market demand and its advantage on integrated industrial chain, Sinopec participates and
implements comprehensive development and utilization of geothermal energy, which marks Sinopec’s
contribution in advancing sound development of Chinese geothermal industry, promoting adjustment of
national energy structure, and building a beautiful China.
Sinopec has explored the way of developing
and utilizing geothermal energy since 1996.
As of 2016, the business region had covered
16 provinces (cities, areas), such as Beijing,
Tianjin, Hebei, Guanzhong, Henan, Shandong,
Shanxi, Heilongjiang, Jilin, Liaoning, etc. The
accumulative heating capacity reached 40
million square meters, which was about 40% of
the conventional geothermal heating area in
the country. It can replace 1.16 million tonnes
of standard coal per year, and reduce 3 million
tonnes of carbon dioxide emission per year.
Hebei Xiong County, �rst “smokeless city” in China
In 2009, Sinopec Star Petroleum Ltd. and Hebei Xiong County government signed cooperation
agreement on geothermal development so that the geothermal resources can be overall planned,
developed, and managed. After 7 years, completed heating capacity amounted to 4.7 million square
meters. Urban area of Xiong County was generally covered by centralized heating, which made it the
�rst “smokeless city” in China. Nowadays, leading by the mode of Xiong County, Sinopec has developed
heating capacity of 15 million square meters in 15 cities (counties) within Hebei Province.
Case
Sinopec promotes geothermal + multi clean
energy integrated development, utilizes excess
heat, gas and pressure in oil�eld, petrochemical
and steel businesses. A series of demonstration
projects were completed, such as Henan Oil�eld
Xiaermen sewage & excess heat utilization
project, Zhongyuan Oilfield Pusanlian excess
heat plus geothermal heating project. Sinopec
explores power generation by solar energy and
wind energy. Shannxi Baishui 20MW agricultural
light complementary project has been started
construction and 23 photovoltaic power
generation projects were implemented.
2016 Social Responsibility Report28
revenue reach to 250 million yuan, up by 37%. The number of stations with insurance service had amounted to 5,160.
2016 Social Responsibility Report30 Energy Supply • Promoting Sustainable Development 31
Leading Technology R&D
Strengthening Scientific and Technological Innovation
In 2016, Sinopec formulated the 13th Five-Year Plan on Scientific and Technological Progress, published a series of regulations, such as Management Method of Scientific and Technological Project, Management Method
S y s t e m a n d M e c h a n i s m Management of Scientific and Technological Innovation
Sinopec has 8 research institutes and 10 research institute branches directly affiliated to it, and over 50 research organizations affiliated to its subsidiaries. Sinopec has built 18 national class R&D organizations and 28 major laboratories.
Platform and Talent-pool Building of Scientific and Technological Innovation
In January 2017, Sinopec announced to support the petroleum and petrochemical entrepreneurship platform based on IQ-CHem, attracted more participants to be involved
Case
Sinopec announced to support the petroleum and petrochemical entrepreneurship platform
in technological and solution innovation, promoted mass entrepreneurship and innovation, and build a public innovation platform with its own feature.
“Science and technology are the weapons of the country, and make the country strong, make the
company profitable, and make people’s living better. Considering both the social responsibility of an
SOE and Sinopec’s future, we must take innovation as cornerstone, promote an overall innovation with
a core of scientific and technological innovation, and explore a way of leading development driven by
innovation.”
——Wang Yupu, Chairman of Sinopec Group
of Scientific and Technological Expenditure, Management Method of Commercialization of Research Findings’ Promotion and Incentive. These methods promote system and mechanism reform and stimulate vigor of innovation.
Sinopec strengthened technological research on exploration and development, refining, chemical, safety, environmental protection and equipment, so as to provide technological support to its integrated and sustainable development.
Sinopec attaches great importance to the core value of talents, therefore it perfects talents excess and incentive system, selects chief experts, senior experts, and skill masters, introduces high-level talents and talents from national Thousand Talents Program, implements “Shi Bai Qian Wan” talents program, so as to build a high-quality talent pool and enhance innovation and profit-making ability. During the 12th Five-Year Plan period, 3 talents were selected academicians of Chinese Academy of Sciences and China Academy of Engineering, and a team of different-level experts was formed in core areas.
Index 2014 2015 2016
Total investment in R&D (100 million yuan) 83.0 79.6 79.1
R&D staff number (person) 14,012 12,895 13,610
In 2016, Mr. Dai Houliang, President of Sinopec, won the honor of National Excellent Science and Technology Talent. As the only representative from enterprise among the ten winners, Mr. Dai has engaged in petroleum & petrochemical production and R&D work for over 30 years, and is a well-known expert in aromatics and coal-chemical technologies. “High-efficiency environment-friendly aromatics packaging technology” with Mr. Dai as the leader has won the Special Award of 2015 National Prize for Progress in Science and Technology, and made China the third country that command this technology in the world only after the U.S. and France.
Tips
“Shi Bai Qian Wan” Talents Program:Relying on major R&D project and engineering project of the country and Sinopec, the company strives to cultivate a number of scientists to be equipped with international sights and strategic thinking, and be good at commanding and leading future development, cultivate hundreds of leading talents in their own fields, thousands of excellent talents with the ability of making breakthrough, ten thousand of backbone talents with strong innovation capability.
2016 Social Responsibility Report32 Energy Supply • Promoting Sustainable Development 33
Integration of Information Technology and Industrialization
Intelligent Factory in Sinopec Zhenhai Petrochemical Company was selected as 2016 national “Demonstration Project of Intelligent Manufacture Pilot”, appeared in 18th China International Industry Fair
In 2016, Sinopec implemented requirements of “Made in China 2025” and “Internet +”, promoted integration of information technology and industrialization. Taking “intelligent manufacture” and “internet +” as the main clue, Sinopec advanced construction of “421 Project” and achieved new progress, which greatly supported the company’s battle in mode and structure adjustment, quality and efficiency improvement.
In 2016, Sinopec was honored “The Enterprise with Outstanding Contribution to Integration of Information Technology and Industrialization”. New Capability Building of Large Petrochemical Group on Deep Integration of Information Technology and Industrialization won the First Prize of the 23rd National Corporate Management Modernization Innovation Progress. 15 subsidiaries had been recognized by national integration management system.
During the 13th Five-Year Plan period, Sinopec will continue to fasten the construction of intelligent oilfield, gas field and factory, complete 3-5 demonstration areas of intelligent oilfield and gas field, 10 intelligent factories, complete promotion of intelligent pipeline system. Besides, Sinopec will also make efforts to cut operating cost of intelligent oilfield, gas field and factory by 20%, increase labor productivity by 20%, and reduce energy intensity in the intelligent factory by 6%.
Four pilot intel l igent factories succeed in Yanshan
Pe t ro c h e m i c a l Co m p a ny, Z h e n h a i Pe t ro c h e m i c a l
Company, Maoming Petrochemical Company, and Jiujiang
Petrochemical Company. Sinopec intelligent factory 1.0
version was built
Labor productivity increases by over 10%
Utilization rate of advanced control arrives 90%
Automatic collection rate of production data arrives 95%
Qualified operation rate was increased from 90.7% to 99%
100% monitoring, analysis and warning was realized in major emission places
In a world-leading class
Completing the promotion of Sinopec Corporation’s ERP
integration
Promoting intelligent pipeline system in an all-round way
Promoting unified e-commerce platform and making it
online in Sinopec Chemical Commercial Holding Company
Limited and Sinopec Lubricant Company
Promoting use of self-developed mobile application platform
in hundreds of enterprises
In 2016, Sinopec made great progress in scientific and technological innovation. 4,878 patents were granted among its 6,563 applications home and abroad. 1 gold medal and 9 excellence award of Chinese patent were given to the company. By the end of January 2017, Sinopec had won 4 Second Prize of National Technological Innovation Award and 1 Second Prize of National Prize for Progress in Science and Technology.
Transformation and Application of Scientific and Technological Progress
National Major Scientific and Technological Innovation Progress Achieved by Sinopec (2016)
Second Prize of National Technological Innovation Award
Key Instruments and Methods for Reconstructing Multi-stage Hydrocarbon Accumulation ProcessHigh Efficiency Renovation Technology and Application of Fracturing Acidification in Deep & Ultra-deep Oil and Gas Reservoirs
During the 12th Five-Year Plan period, Sinopec made 5 great
breakthroughs, generally achieved the world class and partially
led the world, which meant that Sinopec steps into a leaping
development from quantity increasement to quality transition, and
changes its position from following and catching up to catching up
and leading.
Case
Scientific and technological innovation of Sinopec: from following, catching up to leading
Making unprecedented b r e a k t h r o u g h i n shale gas exploration & d e v e l o p m e n t technology, forming a full set of techniques
Developing technology a n d p r o m o t i n g a p p l i c a t i o n o f G B -
Ⅴ clean ref ined oi l p r o d u c t s , r e a l i z i n g quality upgrading of gasoline and diesel
M a k i n g g r e a t b r e a k t h r o u g h i n n e w c o a l - c h e m i c a l technology, init ial ly f o r m i n g i n d u s t r i a l technology series
R e a l i z i n g commercialization of million-ton ethylene packaging technologies w i t h i n d e p e n d e n t intellectual property right, achieving a world-leading class
Completing world-class scale commercialization plant by independently-developed high-efficiency environment-f r iendly a ro m a t i c s p a c k a g i n g technologies, generally in the position of world class
Breakthrough One Breakthrough ThreeBreakthrough Two Breakthrough Four Breakthrough Five
Second Prize of National Prize for Progress in Science and Technology
Large Heavy Duty Equipment Dynamic Design and Key Manufacture Technology & its Application
New Catalytic Materials and Key Preparation Techniques of Single-crystal and Multi-hollow Titanium Silicate Molecular Sieve New Technology of Polyolefin Fluidized Bed Reactor Based on Acoustic Emission Monitoring
6,563
4,878
Patent application home and abroad
Patent grant home and abroad
Tips
421 project means by 2020, Sinopec will complete four platforms, namely integrated and sharing operation and management platform, collaborated and intelligent production and operation platform, connected and high-efficient customer service platform, quick and safe technology support platform; two systems, namely completed and efficient information standard system and information safety management system; and one mechanism, namely scientific and high-efficient information management and control mechanism.
Meanwhile, Sinopec made fruitful achievement in scientific and
technological innovation, proved by completion of over 40 major
technology breakthroughs and commercialization. During the same
period, the number of patent applications and patent grants of
Sinopec were both top the list. The company was given 11 National
Technological Innovation Award, 25 National Prize for Progress
in Science and Technology, 5 Gold Medal of China Patent, and 29
Excellent Award of Chinese Patent.
2016 Social Responsibility Report34 Energy Supply • Promoting Sustainable Development 35
In 2016, Sinopec Safety Management Manual (the Manual) was published and implemented. It is not only significant assurance for Sinopec to strengthen safety management, realize safe development, and build a world-class energy and chemical company, but also a programmatic and mandatory document for all leaders and staff to implement in their daily work. The Manual defines safety concept, policy, goal, management and practice, etc.
Safe production is the fundamental and assurance of all work. Sinopec improves safe production in terms of perfecting safe production management system, implementing main safe responsibility, conducting risk identification, prevention and control, strengthening supply chain security and public security management, which provide solid guarantee to safe production and operation.
In 2016, according to the requirements of laws and regulations like Safety Production Law and Management Method on Safety Production Training, Sinopec conducted safety training at different levels and in different ways to improve safety quality and strengthen safety consciousness of all staff.
Safety
Concept
Firstly, safety comes from design, management and responsibility
Secondly, the safety responsibility should be shouldered according to business,
location and position
Thirdly, staff must pass safety training before they start to work, and no one can be
excluded
Fourthly, anyone has the right to say no to the unsafe work, and stop the unsafe work
Fifthly, all incidents can be prevented and traced to management reason
Sixthly, if one fulfills his responsibility, he can be exempted from taking liability;
otherwise, he will definitely be claimed responsibility
Safety
Policy
Life first, safe development; Prevention matters, comprehensive management; Leaders
contract, full responsibility
Safety Goal Zero Defect, Zero Violation, Zero Incident
Stringent Safety and Security Management
Safe Production Management
Safety System Construction
Safety Education and Training
Index 2014 2015 2016
Safety training investment (10 thousand yuan) 27,779 31,045 28,863
Total time of safety training (hour) 1,947,724 3,545,528 2,024,031
Coverage rate of safety training (%) 91.3 100 100
All Staff
Safety Training
Important Persons
Safety Training
Safety Simulation Training
and Practical Training Base
Construction
Arranged safety program in
management training class,
held 132,400 training classes
in the subsidiaries and
trained 2,699,000 person-
time throughout the year.
Held 3 safety training classes
and trained 109 leaders.
2 8 p e t r o c h e m i c a l
subsidiar ies revamped
simulation system of their
plants, 21 subsidiaries built
practical training base for
special operation.
34 2016 Social Responsibility Report
2016 Social Responsibility Report36 Energy Supply • Promoting Sustainable Development 37
Sinopec attaches the same degree of importance to both prevention and control of the hidden danger, and takes a series of measures to prevent safety risk.
Safety Risk Prevention and Control
Index 2014 2015 2016
Number of safety production emergency response drill 679,000 680,000 537,473
Number of safety production emergency response drill participants
(ten thousand persons)355 360 345
Coverage rate of safety production emergency response (%) 100 100 100
Safety Production
Monitoring and Control
Potential Risk
Checking and Solving
Safety Emergency
Response Management
Sinopec pays high attention to
compliance, supervises the whole
production process, and enhances its
ability of risk prevention and control.
The main responsible leaders of
enterprises, main responsible leaders
of safety affairs, and main responsible
leaders of safety departments have
100% passed the safety examination
and obtained certificate. 100% of
staff have the certificate before they
take up positions. Production plants,
utilities and high-risk operation sites
are 100% under video surveillance.
In 2016, the battle against hidden
dangers in oil and gas pipelines
(including inter-factory pipelines)
was finished one year ahead of the
schedule. The battle against hidden
dangers in tank areas were steadily
pushed forward, and finished over
50% of the total tasks in 2016.
Through optimizing emergency
response plan, making emergency
response cards, and conducting
emergency response drill, Sinopec
further optimizes its management
mechanism and improves i ts
response ability.
In 2016, Sinopec continued to strengthen oil and gas security, anti-terrorism prevention, overseas public security, hazardous chemicals management, and safeguarded security of enterprises and surrounding environment.
Public Security Management
Sinopec Yangzi Petrochemical Company has built a
complete hazardous chemicals management system and
relief expert team. It conducts specialized management
on hazardous chemicals, sets high access requirements
to vehicles, ships and drivers, and connects with drivers
during the whole transportation process in order to
Case
Total-process management of hazardous chemicals
provide consulting services and long-distance relief on
possible incidents. Yangzi Petrochemical Company has
been listed as Hazardous Chemicals Relief Base of Jiangsu
Province. It also participated in on-site relief of Jingjiang
hazardous chemicals incidents and won good comments
in 2016.
Supply Chain Safety Management
Sinopec’s partners are direct participants and operators in every process of production and operation. HSE management of Sinopec’s suppliers, contractors, and carriers are all included in the company’s safety management system. Sinopec evaluates their performances in safety production, occupational health, and environmental protection, maintains strict standards on origin control, process supervision, special rectification, so as to reduce safety risks.
Special Rectification Orientation on Contractors’ Safety Management
Implementing operator’s main
responsibility on safety
management
Strict qualification access
Strict contractors safety training
Strict engineering subcontract
management
Implementing scoring assessment
system on contractors, carriers and suppliers’ safety
management
Sinopec Shengli Offshore Vessels Center participated in a chemicals incident drill
held by the port and maritime affairs administration of Dongying City
2016 Social Responsibility Report38 Energy Supply • Promoting Sustainable Development 39
Supply-side Structural Reform for Growth
38
Feature
Energy Supply • Promoting Sustainable Development 39
The supply-side structural reform is to liberate productivity and increase competitiveness starting from the supply side and production to facilitate economic growth. To be specific, it is to phase out zombie enterprises and outdated productivity to create new economic growth points in new emerging fields and innovation fields.
The year 2016 was a critical year for supply-side reform.
Sinopec advanced supply-side reform by restructuring,
upgrading, cutting overcapacity, reducing costs and identifying
growth areas. We made great efforts in improving productivity,
efficiency and product quality to create new growth for a
sustainable development. In 2016, some subsidiaries of
Sinopec emerged as new models of reform and management.
Ultimate goal
of reform
Being market- or iented, i t improves i ts systems and
mechanisms by stressing stringent management. It aims to
increase profits and improve quality by means of appraisal,
marketing, actuary and security.
Reform
measures
Appraisal. Effective motivation measures are important means
to realize the corporate goals. Goal management is stressed.
Competition mechanism is established. Strict performance
appraisal is in place. If one dollar is earned, one cent of the
dollar shall be shared by the employee.
Marketing. Full-time petrol card client managers and part-
time gas station client managers are in place. This is new retail
business marketing strategy rather than the old philosophy
of waiting for customers to come. Instead of waiting for the
customers, the managers are going out to the market for their
customers.
Management. Cost-effectiveness by more and stringent
accounting is an integral part of the managing process. It tries
to maximize the profits and minimize the costs.
Security. Security management aims to start with details. It
consolidates the Three Basics work. The philosophy behind the
security management is that all best business will fall apart if
there is security problem.
Achievements
made
During the 12th Five-Year Plan, Sinopec Marketing Company
Zhejiang Subsidiary has increased its sales of refined oil
products by 4.5% per year, its retail volume by 76% per year,
and non-fuel product sales by over 30% per year. The profit
made per year is about 3 billion yuan.
Sinopec Zhongyuan Oilfield A model of oilfield reform as being a forerunner in reform by solving development problems Sinopec Marketing Company Zhejiang Subsidiary
A successful market-oriented reform in refined products sales
Ultimate goal
of reform
Taking a foothold in alleviating burdens in the old oilfields,
Sinopec Zhongyuan Oilfield deepens the restructuring
focusing on its business management. With an orientation to
specialized business reforms, it strengthens its three teams in
oil and gas development, oilfield service and utilities.
Reform
measures
Facilitating its business management. It has optimized its
three level management system: subsidiary, oil production
plant and administration area. It is an oilfield management
system featured as a flat organizational structure with a
focus on scientific decisions, market orientation, specialized
management, social service, profit appraisal and information
upgrading.
Strengthening professional teams. It has integrated and
established 12 efficient service teams to tap the domestic gas
field service market.
Optimizing the public service. It has integrated its 10 oil
production and drilling communities to 5. It has established
the Zhongyuan service brand with its own teams of water,
electricity, heating, telecommunications and networking
maintenance.
Mak ing sure of a thorough system and mechanism
restructuring. It has secured the working staff of their benefits
and encouraged all staff to make profits by ensuring the
surplus labor more opportunities.
Achievements
made
It has raised the productivity per capita of the core oil business
working staff. The core business has created profits regardless
of the reduced revenues from oil and gas. It has made
achievements in reducing loss and increasing its profits.
Sinopec Zhenhai Refining & Chemical CompanyA model reform for upgrading product quality
Ultimate goal
of reform
Being value-oriented, it aims to build itself into a stronger and
a larger-scale enterprise by focusing on project development,
management reform and human resource optimization.
Reform
measures
It upholds the principles of value-oriented investment, quality-
oriented technological and scientific development, and profit-
oriented for business operations. These three principles are
meant for quality and profit growth focusing on core business
development, restructuring and innovation.
The organizational structure reform is to make sure every duty
post is taken. The regulation system reform is to break up the
restrictions of management. Performance management reform
is to break up the restrictions of profits. Affinity relationship
reform is to avoid entangled connections. Planning mode
reform is to avoid one way development.
Reforms start with the mindset of the working staff. Team
building starts with the managerial staff. Sincere care for the
staff comes from strict management. The invigoration is based
on realizing the values. The managerial staff’s passion for the
company’s growth comes from their sense of belonging.
Achievements
made
Over 41 years, Sinopec Zhenhai Refining & Chemical Company
has made profits consecutively every year except 2008 when
the global economic crisis resulted in losses because of the
national mandate for oil products supply. It has realized an
accumulative profits and taxes of over 230 billion yuan, 480
times that of the original investment by the nation.
230
3
Over 41 years, Zhenhai Refining & Chemical Company has realized an accumulative profits and taxes of over
During the 12th Five-Year Plan,Zhejiang Subsidiary has made the profit of non-fuel product sales per year about
billion yuan
billion yuan
2016 Social Responsibility Report
40 Low Carbon • Building Eco-system 41
The nation’s 13th Five-Year Plan is intended to
fight global warming by giving equal importance
to both mitigating and adapting. It aims to
actively control carbon emissions and to carry
out its commitment of reducing emissions. It
intends to make contributions to fighting global
warming by deep involvement in climate change
actions.
We continue to save resources and protect the
environment with our actions of energy saving
and carbon emissions reduction. We make great
efforts to develop clean energy, research on
eco-friendly products and implement carbon
assets management. By doing so, we facilitate
a harmonious growth between the enterprise,
the society and the environment for a green,
recyclable and low-carbon development.
Our Actions
Sustainable Development Background
Affordable and Clean Energy
Climate Action
Life on Land
Life Below Water
SDGs
Intensified Environmental Stewardship
Supplying Clean Products
Cutting Emission and Energy Intensity
Nurturing the Eco-system
42444651
52 Feature
Coping with Climate Change
t h r o u g h C a r b o n A s s e t
Management
Building Eco-system
Low Carbon
2016 Social Responsibility Report
42 Low Carbon • Building Eco-system 43
S i n o p e c e n h a n c e s s t a f f ’ s
environmental protection awareness
a n d i m p r o v e s t h e C o m p a n y ’s
e n v i r o n m e n t a l p r o t e c t i o n
m a n a g e m e n t b y i n t r o d u c i n g
environment-re lated laws and
regulations as well as organizing
managerial and technical trainings.
We will not
earn ONE penny
at the cost of
the environment
Intensified Environmental Stewardship
Sinopec continues to increase its investment in environment protection. We raise our r isk control abi l i ty by improving environment management and establishing a whole process and multi-level risk control system.
6.82015
Total investment in environment protection
10.822014
billion yuan
billion yuan
62016
billion yuan
Sinopec honors the Three ONEs commitment to environmental protection. We continue our endeavors in establishing environment protection institutions, regulations and training systems so as to standardize the corporate environment protection management.
Environmental risk prevention and control helps to significantly reduce pollution and preserve people’s life, health and properties.
Environment Protection Management System
Environmental Risks Prevention
Mechanism
established
Sinopec has compiled Sinopec Environment Emergency Response (2016), to help its subsidiary companies to
establish emergency response mechanism.
Risk identification
and review
Sinopec has conducted environmental risk identification and review work among all its subsidiary companies
to raise its risk control capabilities. It has strengthened whole-process environment management with 100%
environment passing rate of new projects in 2016.
Environment
monitoring
Sinopec has improved its online pollutant monitoring platform. At present, 385 online monitoring
points of 43 enterprises have been connected to Sinopec’s online monitoring network, which results in a
comprehensive and effective monitoring on pollutants.
Three ONEs commitment to environmental protection
We will not
spend ONE penny
less on environmental
protection
EnvironmentManagement Structure
Rules and Regulations
Environmental Protection Education
In 2013, Sinopec set up the Energy
Management and Environment
P r o t e c t i o n D e p a r t m e n t i n i t s
headquarters. I t is the first SOE
which has its specialized department
re s p o n s i b l e fo r a n i n t e g r a t e d
management of green and low-
carbon energy as well as environment
protection.
Sinopec has 14 environment protection
regulations including Solid Waste
Treatment Regulations, Waste Gas
Treatment Regulations, Environment
Monitoring Regulations etc. It has
enacted the Sinopec Industrial Water
Saving Regulations to strengthen the
management of industrial water use.
It has also issued the Guidelines for
Sinopec Environment Work Performance
Review, one of the innovative ways of
monitoring and management.
We will not
do ONE single thing
that may damage
the environment
2016 Social Responsibility Report
44 Low Carbon • Building Eco-system 45
Supplying Clean Products
Sinopec continuously enhanced R&D for clean products so as to reduce impact on the environment during production process.
Sinopec continues to upgrade its oil products, aiming to offer clean energy to the society for a green and environment-friendly development.
From 2000 to 2015, Sinopec invested 276.6 billion yuan in oil products upgrading. From unleaded gasoline to GB-V standard fuels, sulfur content has
On 30th December 2016, Sinopec had a press conference for Jing-VI standard gasoline in Beijing. Starting from mid February 2017, 562
Oil Products Upgrading
been reduced from 1,000ppm in 2000 to 10ppm, international level, nowadays. In 2016, Sinopec offered GB-V fuels in 31 regions nationwide.
“Five Steps” to Realize Sinopec’s Oil Products Upgrading
New Contribution to Environment Protection: Jing-VI Standard Gasoline for the Nation’s Capital
Continuous Reduction of Sulfur Content of Sinopec’s Gasoline
January 2003First step
Second step
Third step
Fourth step
Fifth step
GB-I gasoline≤ 800ppm
GB- Ⅱ gasoline≤ 500ppm
GB-III gasoline≤ 150ppm
GB- Ⅳ gasoline≤ 50ppm
GB- Ⅴ gasoline≤ 10ppm
July 2005
May 2010
January 2014
December 2016
s
10% reduction of particle emissions in gasoline cars,
8% to 12% reduction of non-methane organic gases
and NOX emissions, and
4.6% reduction of NOX in diesel cars and 9.1%
reduction of particle emissions as well as further
reduction of vehicle exhaust pollutant emissions.
According to the statistics of Beijing municipal environment protection bureaus, it is estimated that the use of Jing-VI gasoline will result in
Sinopec supplies Jing-VI gasoline in Beijing.The company is actively promoting the
upgrade of GB- Ⅵ gasoline
service stations in Beijing have been offering Jing-VI standard gasoline.
Biomass Energy Development 13th Five-Year Plan has pointed out that biomass energy will be commercialized and used on a large scale by 2020. Over the years, Sinopec has always been leading the way in the research and application of biomass energy including bio-jet fuel.
Sinopec has been doing research on related green products to improve the efficiency of oil products and reduce hazardous exhaust emissions such as fuel additive, exhaust treatment liquid, diesel car pour point reducer, washer fluid etc.
Sinopec “Hailong” fuel additive helps clean
the carbon deposition, increase power, save
fuels and reduce emissions. As a carbon
cleaner, it keeps the engine always new and
makes fuel combustion more complete.
I t helps reduce fuel consumption and
hazardous emissions such as carbon and
hydrogen.
Sinopec “Yuetaihailong” diesel vehicle
exhaust treatment liquid is a high quality
catalyst reducer which helps reduce exhaust
particle emissions considerably. The statistics
from third-party inspection agency showed
after using the “Yuetaihailong” diesel vehicle
exhaust treatment liquid, the NOX and PM
emissions of GB- Ⅳ standard diesel vehicle
are 41.7% and 89.7% lower respectively than
GB- Ⅲ standard diesel vehicles.
Commercial Use of Bio-jet Fuels
Related Green Products
Cleaner for automotive
engines: fuel additive
Diesel mate: exhaust
treatment liquid
Chronicle of Sinopec’s No.1 Bio-jet Fuel
2009
2011
2013
2014
2015
2016
Research on bio-jet fuel started. Sinopec successfully developed the production
technology of bio-jet fuel with proprietary intellectual property right.
Sinopec officially applied to Civil Aviation Administration of China for certificates of
airworthiness.
Sinopec’s No.1 bio-jet fuel had a successful technical test flight by China Eastern
Airlines in Shanghai Hongqiao Airport.
Sinopec was granted the first certificate of airworthiness by Civil Aviation
Administration of China. This symbolizes Sinopec’s bio-jet fuel has been
commercialized into application.
Sinopec’s bio-jet fuel had its successful debut commercial test flight. This makes
China one of the few countries which have bio-jet fuel proprietary intellectual
property right and have it commercialized.
In order to secure the supply of bio-jet fuel, Sinopec Zhenhai Refining & Chemical
Company was granted the approval of its feasibility report on the hydro-processing
unit revamping. It will be put into operation in 2018.
Tips:
Bio-jet fuel is the jet fuel made from r e n e w a b l e r e s o u r c e s i n c l u d i n g coconut oil, palm oil, physic-nut oil, linseed oil, algae oil, waste cooking oil, etc. Compared with conventional petroleum-based jet fuel, carbon emissions are reduced by 35% in bio-jet fuel in its whole life cycle.
2016 Social Responsibility Report
46 Low Carbon • Building Eco-system 47
Cutting Emission and Energy IntensityGuided by ecological civilization, Sinopec has always had this philosophy of “saving is the best resource”. We uphold the principles of environment protection as priority, prevention �rst, comprehensive treatment, law abiding and accountability for environmental problems. We continue to coordinate the management work of energy saving, emission reduction and carbon reduction for clean, e�cient and sustainable growth. With great efforts in advancing clean production, Sinopec is building a resource saving and environment-friendly green enterprise to realize its development strategy of green and low carbon growth.
Improving the integrated
management of energy and
environment protection
The leader in charge is assigned responsible for energy saving and environment protection. Some subsidiary companies have specialized department o�ce for this job. Energy saving and environment protection is an integral part of the management system of production, reform and development and routine a�airs. Comprehensive appraisal mechanism of energy e�ciency is established. 35 re�ning companies entered this simulation appraisal throughout the year and 13 companies have found their overall cost of energy decreased year on year.
Standardizing review and audit of
energy saving
The review and audit work on energy saving and environment protection in �xed assets investment projects are particularly emphasized. We strictly carry out the review and audit work as well as the approval of these projects.
Building the energy management
center
In 2016, 7 companies including Sinopec Maoming Company online networking was �nished. By now, the nine companies online have made pro�ts of 53.54 million yuan by online optimization of thermoelectricity production.
Phasing out high energy
consumption electromechanical
equipment
In 2016, Sinopec phased out 1,264 transformers with a total capacity of 437 MW and 3,937 electric motors with a total capacity of 214 MW.
Promoting advanced energy saving
technologiesIn 2016, 230 energy saving technologies in Sinopec Group have been promoted. It is estimated that energy saved is equal to 237,000 tonnes of standard coal and pro�t made is 629 million yuan.
Strengthening the monitoring of
energy saving
We strengthened the energy monitoring on the energy use in re�ning enterprises and oil�elds and set up an energy saving bench marking system. In 2016, Sinopec �nished testing the energy consuming equipment in Sinopec Beijing Yanshan Company, Sinopec Qingdao Re�ning & Chemical Company, Sinopec Anqing Petrochemical Company and Sinopec Baling Petrochemical Company. In this testing, energy to be saved is equal to 50,242.7 tonnes of standard coal per year.
In 2016, Sinopec continued to improve energy management and tap the full potentials of energy saving to increase the e�ciency of energy used.
Energy Management
“Energy E�ciency Doubling” project facilitates energy e�ciency
Case
In 2016, Sinopec continued to advance the “Energy
Efficiency Doubling” project. The measures are taken
to save energy through management, organizational
structure, technology, key projects, cyclic economy and
contract energy management. These measures have
greatly improved the efficiency of energy resources.
Through the year, 418 projects were carried out, saving
energy equal to 565,000 tonnes of standard coal and
creating pro�ts of 1.08 billion yuan.
In 2016, Sinopec Zhenhai Re�ning& Chemical Company
and Sinopec Qingdao Refining & Chemical Company
were awarded “Energy E�ciency Leader” for the fourth
consecutive year in the Energy Efficiency “Pacemaker”
event among China’s petroleum and chemical industry.
15 Sinopec subsidiaries including Sinopec Shengli
Oil�eld were awarded the “Advanced enterprise” among
the nation’s petroleum and chemical enterprises. And
6 Sinopec energy saving technology companies were
awarded “Excellent enterprise” of energy saving during
the twelfth Five Year Plan. In the Energy E�ciency Index
Comparative Analysis Activity by the SASAC, Sinopec
Qingdao Refining & Chemical Company was awarded
as the best re�ning enterprise of over 10 million tonnes
capacity in energy efficiency for the third consecutive
year.
Index 2014 2015 2016
Energy saved (10 thousand tonnes of standard coal) 55 61 114
Percentage of energy saved (%) 0.6 0.7 1.25
Average energy consumption in re�nery (kg standard oil /tonne) 59.5 59.5 59.6
Unit energy factor consuming (kg standard oil /tonne·factor) 8.30 8.19 8.09
The feedstock is mostly non-
toxic renewable raw materials,
meant to reduce CO2.
Green and environment-
f r i e n d l y t e c h n o l o g y i s
e m p l o y e d t o r e d u c e
pollutants. The efficiency of
energy is raised and CO2 is
reduced.
Waste gas: desulfurization,
de-NOX, and dust pelletizing
technologies of the exhaust
gas, reducing the emission of
SO2, NOX, PM, VOC.
Considerably reduce the
emission of pollutants such
as SO2, NOX, hydrocarbon and
particles in fuel consumption.
Waste water: waste water is
treated and recycled. And
pollutants such as COD
and ammonia n i t rogen
are minimized to meet the
discharge standard of the
waste water.
Waste residue:detoxification,
reduction and recycling.
Sinopec whole-process management for clean production
Integrated use
Cyclic economy
By-products
Three Wastes
Feedstock ProductionClean
ProductsConsumption
2016 Social Responsibility Report
48 Low Carbon • Building Eco-system 49
Sinopec has always been committed to green, low carbon and recycle development. We have continuously reduced emissions and pollution with “Clear Water and Blue Sky” environment protection special action and Three Wastes treatment to build our green home.
In 2013, Sinopec initiated the “Clear Water and Blue Sk y ” environment protec t ion special action. This action mainly focuses on control of air pollution, water contamination and solid waste. This is not only the largest environmental protection campaign of Sinopec since its establishment, but also the most intensive and widely environmental protection initiatives of Chinese enterprises so far.
Sinopec applied strict regulations to the temporary storage and treatment of solid waste, especially hazardous waste, to meet the national and local standards. In 2016, solid waste treatment met the standard 100%.
Sinopec strictly implements the requirements of Air Pollution Prevention and Control. It has finished revamping of coal-fired boiler d e s u l f u r i z a t i o n a n d d e - N OX, s t a n d a rd upgrading of refinery flue gas, oil tank, oil-gas recovery in gas stations as well as VOCs. We have made great efforts to solve air pollution and to improve the conditions of the surrounding environment of the plants. In 2016, Sinopec finished the oil-gas recovery revamping in 17,943 service stations and 269 oil depots.
D u r i n g t h i s p e r i o d , S i n o p e c Lu o y a n g Petrochemical Company has implemented over 10 “Clear Water and Blue Sky ” and hidden hazard treatment projects. Four main pollutants in effluent waste water of COD, ammonia nitrogen, sulfur dioxide and nitrogen oxides have been reduced by 59%, 54%, 63% and 57% respectively. The effluent waste water and waste gas emissions all met standards. Solid wastes are all recycled and properly treated or disposed.
“Three wastes” Treatment
Sinopec strictly carries out its water use m a n a g e m e n t . I t r e g u l a t e s t h e w a t e r management in its subsidiary companies and carries out water balance test as well as standard upgrading of waste water treatment. In some water-stressed areas, we have built waste water reuse and high salt water treatment facilities. This helps improve the water use efficiency and result in zero waste water discharge. In 2016, the volume of industrial water use was reduced by 1.1%. We also strictly implement the Water Pollution Control Action Plan and Soil Pollution Control Action Plan. Actions to prevent and control water and soil pollutions have been carried out.
“Clear Water and Blue Sky” Environment Protection Special Action is A Complete Success
Waste water treatment and recycle for higher efficiency of water resources
Case
Sinopec Great Wall Energy and Chemical Ningxia
Company is a large-scale cyclic economy
demonstration enterprise built by China’s
Ningdong Energy and Chemical Industrial Base.
It is the first company of Sinopec’s coal chemical
segment that went into operation.
It made great efforts in waste water treatment,
having the waste water fully recycled. To
minimize the industrial water used in the
chemical facility, the company has built waste
water treatment facility of 1,250m3/h and waste
water recycle facility of 2,500m3/h and rainwater
Index 2014 2015 2016
Discharge of waste yoy (%) -7.2 -13.3 -5.08
Discharge of waste water yoy (%) -8.0 -0.27 -6.57
Volume of industrial water yoy (%) -1.1 -1.0 -1.1
Sinopec Luoyang Petrochemical Company’s water quality test staff regularly takes water samples for test from the industrial waste water discharge outlet of the Yellow River
In 2016, Sinopec Qilu Petrochemical Company carried out LDAR. 1,900 leakages were found and fixed, which has greatly reduced the leakage of VOCs
collecting system. It has demonstrated the
state’s strictest standard of water consumption.
The company has built high salt water treatment
facility with a designed capacity of 450m3/h.
For 20 months since operation, it has treated
high salt water of 2.17 million m3. This has
considerably eased the problem of discharge
and storage of high salt water and increased the
recycled use of waste water from 63% to 89%.
Meanwhile, it saved fresh water of 1.14 million
m3. This project has become the demonstration
for China’s high salt water zero discharge.
17,943
269
Service stations
Finished the oil-gas recovery revamping
Oil depots
By the end of 2016, Sinopec “Clear Water and Blue Sky” environment protection special action is completed. Over three years, we have implemented 870 projects and invested 20.92 billion RMB. 34 waste water treatment projects and 36 waste gas treatment projects on the nation’s responsibility statement have been completed. We have completely finished the emission reduction tasks of the nation’s 13th Five-Year Plan.
Reducing Emissions and Pollution
2016 Social Responsibility Report
50 51
Nurturing the Eco-systemDeveloping Circular Economy
We l a y e m p h a s i s o n p ro t e c t i n g t h e e c o l o g i c a l environment, strengthening the identification and analysis of environmentally sensitive areas and environmental risks, trying to avoid the production and operation in environmentally fragile areas and ecological conservation zones. We promote clean production, and make ecological restoration and rehabilitation around abandoned oil and gas wells and along oil and gas pipelines so as to reduce the impact of production and operation on the environment.
We focus on biodiversity conservation in the working areas and creating a healthy and harmonious ecological home for onshore and offshore animals and plants.
Sinopec actively develops circular economy, cont inues to explore means of resource optimization, and reinforces recycle and reuse of resources such as byproducts and “three wastes”.
Cascade utilization of
waste heat and waste
pressure
Recycle and reutilization of resources
Recovery and
utilization of
flare gas
Sludge treatment
and
recycled utilization
Comprehensive
utilization of
refinery gases
Optimal
utilization of
hydrogen
Spent catalyst
recovery and
recycling
Reutilization
of oilfield
associated gas
50 51Low Carbon · Building Eco-system2016 Social Responsibility Report
52 Low Carbon • Building Eco-system 53
Coping with Climate Change through Carbon Asset Management
Sinopec actively addressed the climate change challenge and
responded to the national policy to promote GHG reduction
and carbon asset management, being a key contributor to the
beautiful home and a leader in low-carbon lifestyle.
Release of Sinopec Regulations on Carbon Asset
Management (Trial) so as to de�ne the functions
and responsibilities of Sinopec subsidiaries in
carbon asset management.
Carbon asset accounting and management
training programs benefit 1,000 carbon asset
management personnel.
Establishment of statistical, monitoring and
management system for GHG emission and
improvement of functional module of IT system
for carbon asset management.
Total life cycle carbon footprint research on
asphalt, jet fuel, caprolactam, lubricant, etc.
Entrusted by NDRC and CPCIA, Sinopec completed
the carbon quota allocation benchmark research for
petrochemical products including re�ned products,
ethylene, aromatics, PTA and ethyl glycol, etc.
52
Feature
Strengthening Carbon AssetManagement System
Establishing
regulatory
systems
Talent
building
Carbon asset
management
information
system
Research on
identi�cation of
carbon footprint
for petrochemical
products
Facilitating the
establishment of
carbon market
in China
Carbon trading volume
2015
2014
1.8 million tonnes
2.1 million tonnes
2.552016
million tonnes
Sinopec in-house platform software——Sinopec carbon asset management system
Case
With an aim to achieve carbon accounting, carbon emission
reduction and creating carbon value, Sinopec established an in-house
information system for carbon asset management. The system serves
for the purpose of ensuring sustainable development of all Sinopec
subsidiaries by helping the management and analysis of carbon
emission reduction in a scientific, precise, complete and detailed
manner, providing support for the accounting, trading and footprint-
reduction of carbon emission. The system works for energy-saving and
emission reduction by improving carbon asset management e�ciency
and excellence in Sinopec subsidiaries.
Sinopec carbon asset management system represents the Group’s
proprietary carbon asset management platform software applied in
large-size industrial enterprise in China and supports the carbon asset
management of the Group.
53
Implementing
GHG emission
reduction
projects
Sinopec Star Petroleum and Shengli Oilfield completed the
filing for 5 CCER projects, with a total annual carbon emission
reduction of 195,000 tonnes.
Taking GHG
emission
reduction
actions
In 2016, the pilot CO2-�ooding EOR programs were carried out
in Sinopec Shengli, Zhongyuan, East-China, Jiangsu oilfields
for increasing recoverable reserves, with a total of 300,000
tonnes of CO2 injected into the oil�elds and 50,000 tonnes of oil
recovery enhanced. By far an accumulation of 3 million tonnes
of CO2 has been injected into these oilfields to enhance the
recovery of 280,000 tonnes of crude oil in accumulation. The
reutilization of associated gas from oil�elds, recovery of methane
from crude transportation system and Sinopec service stations
were completed by Sinopec North West Re�ned Products Sales
Company, Sinopec North China Re�ned Products Sales Company
and Sinopec Guangdong Re�ned Products Sales Company, with
a total of 200 million cubic meters of methane recovered, as an
equivalent of 3 million tonnes of CO2 emission reduced in GHG
emission.
Carbon
accounting
In 2016, Sinopec completed the full carbon accounting for the
production facilities in 96 Sinopec subsidiaries. This is based
on the achievement of carbon accounting in the previous 5
consecutive years. Carbon accounting is signi�cant to support
the construction of low-carbon demonstration facilities and
establishment of uni�ed carbon trade market in the nation.
Carbon trade
In 2016, 26 subsidiaries of Sinopec has been designated for
the trial of carbon trade on schedule, with 2.55 million tonnes
of carbon traded in total and worth 37.75 million yuan in
transaction.
Maximizing Carbon Asset Value
542015
Carbon trading value
86.342014
million yuan
million yuan
37.752016
million yuan
The 13th Five-Year Plan has proposed to promote low-carbon and circular growth, effectively control carbon emission in petrochemical and other key industrial sectors, build a unified carbon emission trading market nation-wide and improve carbon emission standard system.
Low Carbon · Building Eco-system2016 Social Responsibility Report
54 552016 Social Responsibility Report
Safeguarding employee’s rights and interests with
responsible care ; Adding value to customers through
innovation on products and services; Being a responsible
partner by creating win-win industrial value chain; Stepping
up international operations driven by management
excellence; Being a committed corporate citizen in local
community development.
Our Actions
Sustainable Development Background
SDGs
Decent Work and Economic Growth
Good Health and Well-being
Gender Equality
The 13th Five-Year Plan proposes: that the “talent preferred”
development strategy is to be implemented to put talent
as the primary resource for development; that the “Belt
and Road Initiative” should guide and enrich international
partnership; that foreign cooperation is to be further
opened up in parallel with building mutual and strategic
trust, promoting investment, economic and trade
cooperation as well as people-to-people exchanges, so as
to open new a chapter in synergetic mutual cooperation
with international partners.
Responsible Consumption
and Production
Partnerships for the Goals
Peace, Justice and Strong Institutions
Responsible Care for Employees
Tailor-Made Services
Responsible Value Chain
Best Practice in Overseas CSR
56626668
Feature
EPEC, A Platform for Business Eco-system
72
Value Creation
Value Creation • Partnering for Win-Win
Partnering for Win-Win
56 Value Creation • Partnering for Win-Win 572016 Social Responsibility Report
Cultural Legacy
Inspired and motivated by the corporate culture, a number of Sinopec people emerged as outstanding employees who are hardworking and professional, devoted and contributing, bold and creative, and caring for the disadvantaged people. With their own performance and actions, they carry forward Sinopec corporate culture and serve as showcase for other fellow employees to follow and contribute to the sustainable growth of the Company. In 2016, there were 8 Sinopec employees awarded National Labor Medal.
Corporate Culture
Carrying Forward the Legacy
Corporate culture is the essential component of corporate core competitiveness and provides continued driving source for corporate sustainability.
Sinopec carries forward the good traditions of “Love for the Nation and Revitalize Petroleum and Chemical Industry”, the “Three Honests” and “Four Stricts”, “Hardworking and Being Earnest”, etc. and inherits the �ne work style of being precise and rigorous as well as pragmatic and innovative. In the meantime, based on the legacy drawn from modern corporate management and corporate culture home and abroad, we are making continued innovations and progress.
(“three honests”: be honest in thought, word and deed; “four stricts”: set strict standards for work, organization, attitude and observance of discipline)
In 2016, we published the amended Outlines on Sinopec Corporate Culture Development, improving the core value and the work system of corporate culture development, creating the vibe of being positive and united, perseverance and diligence, as well as devotion and contribution, and encouraging enterprising spirit among employees to strive for quality, e�cient and sustainable growth of the Company.
Core Value System of Sinopec
Responsible Care for Employees
Sinopec is engaged in corporate culture development to motivate employees and improve cohesion. Employee care involves safeguarding employee’s basic rights and interests, safety and health, supporting career development and building employee care system, so as to improve the quality of career and life and ensure growth with the Company.
Min Enze, Father of Catalyst in China
Mr. Min Enze, member of Chinese Academy of Engineering and Chinese Academy of Science,
is the founding father of applied science for re�ning catalyst, a pioneer in the independent
innovation of petrochemical technologies, and explorer of green chemistry. Renowned as
Father of Catalyst in China, Mr. Min was awarded the Top Science and Technology Prize and
elected as Person of the Year in China 2007.
Sinopec sent successively 16 persons in 8 groups to work on Aiding-Tibet project in Ban’ge,
a county in Tibet. Guided by the traditional Tibetan Spirit, Naqu Spirit and the legacy of
Sinopec corporate culture, these people are committed to bringing practical bene�ts for the
well-being of the local people and contributing to the growth of Ban’ge.
Aiding-Tibet, committed and contributing to local community
Chen Penglong, Deputy Manager of Sinopec Hubei Jingmen Refined Products Sales
Company, was a forefront hero in �ghting �ood. He sacri�ced his life while helping a private
owner’s service station where the oil tank was in danger of being �ooded. His heroic deed
proves the loyalty and responsibility of Sinopec employees.
Chen Penglong, Flood-Fighting Hero
Tian Ming is a common worker of Sinopec Jiangsu Oilfield. Thanks to his arduous study
and creativity, he made 92 innovative achievements worth of over 60 million yuan. His
achievement, innovation and application of oil testing technology, was awarded second
prize for Progress in National Science and Technology.
Tian Ming, Technology Master
Xue Mei is a common worker from Sinopec Shengli oil�eld. For two decades, Xue Mei has
done a meticulous job of taking care of oil wells. She has made over 42,000 patrols about
wells and pipelines, covering a distance of over 300,000 km and ensuring oil production
of 123,400 tonnes. In 2016, Xue Mei was awarded by SASAC the “Most Beautiful Legendary
Figure from Chinese SOEs” and National Labor Medal.
Xue Mei, Beautiful Legendary Figure
Kalmagambetova Aliya is an employee of Sinopec SIPC Kazakhstan Company. She has been an
expert in Planning and Operation Department since 2012. She helped collect and consolidate
the business process and all kinds of regulations and systems of the company, so as to ensure
the management under uni�ed standard. Hence, she was awarded the Guru of Standard.
Kalmagambetova Aliya, Guru of Standard
Song Liping is common worker from Sinopec Zhongyuan Oil�eld. In the past 18 years, she
donated hematopoietic stem cells and 16,000 ml of blood for needy patients. She set up
Song Liping Volunteer Service Team to aid the disadvantaged households and the elderly in
“empty nest”. In 2013, Song Liping was awarded the National Moral Model and received by
President Xi Jinping.
Song Liping, Moral Model
56
Powering Better life
Building World Leading Energy
& Chemical Company
Strict, Stringent and Down-to-Earth
Corporate Work Style
Corporate Mission
Corporate Value
Corporate Vision
The core values of People, Responsibility, Integrity, Excellence, Innovation and Win-Win
2016 Social Responsibility Report
58 Value Creation • Partnering for Win-Win 592016 Social Responsibility Report
Occupational Health
We provide employees with reliable condit ions on health and labor protection, strengthen occupational health management, and continuously promote mental health development and create a safe and sound working environment.
Health Management
We revised the relevant regulations on Sinopec Occupational Health Management, with emphasis on the implementation of accountability and process control.
We had Occupational Health Division set up in oilfield and petrochemical subsidiaries and extended the management network on health management.
We continued to apply OSHA statistics method and integrate it with HSE management system. We kept record of and analyzed the status of occupational injuries and occupational diseases, as well as their root causes, so as to take counter-measures against these injuries and diseases.
Occupational Health Risk Control
We conducted special inspection and real-time management on occupational health risks, so as to control the source of occupational health hazards.
We strengthened project management of the Three Simultaneities for Occupational Health.
We carried out employees’ occupational health check-up. In 2016, 360,000 recipients were given occupational health check-ups, and diagnosis and treatment for people with abnormal results were arranged in a timely manner.
Mental Health Management
We carried out EAP (Employee Assistance Program) for 5 consecutive years to provide employees with care and psychological assistance, guiding them to take care of their mental health. By 2016, EAP had been in place in 70 Sinopec subsidiaries and covered over 600,000 recipients.
Occupational Health Training
We carried out 3 special training programs on occupational health covering 448 occupational health management employees.
We published books and journals, such as Occupational Health Management for Petroleum and Petrochemical Industry, so as to disseminate knowledge on occupational health.
We organized Education Week event in local residential communities to popularize occupational health knowledge and Law on Prevention and Treatment of Occupational Diseases.
We sent special delegation composed of representatives from Sinopec subsidiaries to attend the 2nd US-China Occupational Health Symposium for learning and sharing the best practice on occupational health.
Index 2014 2015 2016
Total expenditure for occupational health training(10,000 yuan) 2,927 2,934 2,099
Total hours for occupational health training (hours) 4,344,970 4,889,408 2,076,581
The incremental occupational dieses cases 21 6 19
Employee Rights and Interests
Sinopec respects and safeguards human
rights, and opposes any act that violates
human rights. We forbid gender, geography,
religion or nationality discrimination regarding
recruitment, training and promotion, and
forbid the use of child labor or forced labor.
We improve collective contract system. The
collective contract coverage ratio is 100%.
We sign labor contracts with employees
based on equality and consensus through
consultation. The rate of labor contract signed
is 100%. And we actively promote the reform
on employment system and regulate labor
dispatching.
We promote synchronized growth between
total payroll and corporate profitability,
providing multi-layer insurance system
involving social security, commercial insurance
and supplementary corporate insurance. We
further develop social benefits and insurance
systems by paying 100% insurance expenses
and housing funds, providing employees with
medical check-up, health record, and vacation
and recuperation systems.
We emphasize employees’ participation.
We give ful l play to the functions of
employee representative conference and
necessary disclosure of corporate affairs.
We aim for closer communication between
the employer and employees, and we
encourage employees’ participation in
business decision-making and protecting
their interests and benefits.
Respect for Human
Rights
Labor Management
People-Oriented Labor
Management
Remunerations and Benefits
Tips
“Three Simultaneities for Occupational Health” refers to the facilities for work safety and protection of occupational diseases should be in place with the key units of our production facilities throughout the engineering, construction and operation phases in accordance with laws and regulations. We take three fundamental principles in this regard: (1) in compliance with laws and regulations and under strict management; (2) those who are responsible for review and approval are held accountable; (3) those who are responsible for building the relevant facilities are held accountable.
60 Value Creation • Partnering for Win-Win 612016 Social Responsibility Report
In 2016, we promoted Family Culture development by aiding the employees living in difficulty, caring the retirees, organizing recreational activities and making employees work and live in happiness.
Employees are the major resources that support corporate growth. We provide sufficient conditions for them to achieve comprehensive development, demonstrate their strengths, fulfill their value and contribute to the Company’s growth.
Family Culture Development
We encouraged and promoted Family Culture program to make everybody feel increased team cohesion and sense of belonging.
Visits to Onsite Workshop and Employees’ Families
In 2016, we held the Visits to Onsite Workshop & Employees’ Families campaign and visited over 55,000 workshops at different plant sites and over 510,000 employees’ families, covering 60% of Sinopec employees. Through the visits, we solved over 33,000 problems on plant sites and helped employees overcome difficulties at work or home.
Employees Assistance Work
We implement the principle of"really need and really helpful",defining subsidiaries' responsibility for employee assistance. We set forth the bottom-line measures to assist those employees living in extreme difficulties and provide tailor-made support for needy employees. In 2016,total recipients of employee assistance amounted to229,953,and the total value of assistance funds and goods reached 220 million yuan.
Care for Retirees
We care for the living and health of retired employees, providing regular medical check-ups, making home visits and organizing recreational activities. We make our employees happier and more relaxing by providing various cultural and sporting activities. In 2016, we gave medical check-ups to 292,000 retirees.
Employee Recreational Activities
We organized diversified recreational activities for employees to strike a balance between work and life. In 2016, we set up Sinopec Chaoyang Volunteer Service Team to visit the plant sites and local residential communities and organized over 5,000 recreational activities for retired employees.
Career Development
Facilitating Career Development
We expand career development path for all kinds of talents, strengthening the talent pooling for leading experts, providing platform for these experts to grow and fulfill their value, and promoting the intra-group intellectual sharing among experts.
Improving Talent Attraction, Selection and Evaluation Process
We believe that “world-leading talents should be attracted to a world-leading company”, thus we held campaigns in the top universities such as Tsinghua University and Peking University to attract elite talents into the company.
We improved talent selection and evaluation process and built information platform for talent management.
We launched professional work competitions and built a talent growing-up platform.
We had outstanding employees awarded with national prizes and facilitated talent team-building. In 2016, 1 Sinopec employee was awarded Chinese Technical Skill Prize, 3 employees were awarded National Technical Expert Prize, and 8 employees were awarded National Labor Medal.
Tailor-Made Talent Training
We improved the training system to foster talents in 3 fields, namely, the operation and management, special technologies and technical skills. In 2016, 4,300 recipients from Sinopec subsidiaries attended a number of training programs on executive leadership, high-caliber specialized expertise, high-grade technical expertise and international operations.
We strengthened the designing of job-specific training programs tailored to the needs of different professional levels. We organized nearly 500 case-learning through internal training focused on corporate management, Party-building and basic skills.
We started the 3rd phase construction project of distance training system aimed for expanding remote-training and management application.
Versatile Employee Development
We encourage versatile development of employees and let them demonstrate diversified skills in the company.
Employee Care
Index 2014 2015 2016
Expenses on assisting employees living in extreme difficulties (100 million yuan) 1.03 1.76 2.2
Number of employees assisted 123,089 170,710 229,953
We launched a “Family Culture” program in service stations and oil depots,
advocating the core value of “interdependence and common growth between
the company and employees”. The program aimed at guiding employees to be
honest, disciplined, friendly, diligent and responsible, and to do business in a
way that satisfies employees, customers and the Company.
62 Value Creation • Partnering for Win-Win 632016 Social Responsibility Report
We are committed to continuous innovation on products and quality services for customer satisfaction.
Guided by the market and customer needs, we provide diversified products and services based on independent innovation and driven by advanced technologies. Today we have established our proprietary branding system through which we supply quality products and services to the society.
Sinopec Branding System
Brand Family
Petroleum & Petrochemical Businesses
Product Category
Single Product
Product-related Brands
In-Station Non-Fuel Service
Diversi�ed Products
Financial Services
Hotel and Real-Estate Services
Third-Party Procurement Platform
Company-related Brands
Businesses Other Than Petroleum and Petrochemical Businesses
Individual Brand
Corporate Brand
Co-Brand
Individual Brand
Corporate Brand
Endorsed Brand
Fixed Endorsed Brand
Fixed Endorsed Brand
Flexible Endorsed Brand
Flexible Endorsed Brand
Tailor-Made Services
logo
CO-BRANDED
62 63Value Creation • Partnering for Win-Win2016 Social Responsibility Report
64 Value Creation • Partnering for Win-Win 652016 Social Responsibility Report
We sincerely serve every client and consumer. We have a sound system of client relationship management to strengthen communication with clients and meet their demands, including means of client visits, e-commerce platform, client service center, online service, new media
First professional client service system in the petrochemical industry
Based on the idea of constructing a comprehensive information platform/system of unification, integration and sharing, we built Sinopec Unified Client Service System to meet clients’ growing demands. By December of 2016, subsidiaries had activated hotline service 95538, including fuel card, chemical product sales and lubricant business.
Function Structure of Client Service Information System 95538
Upgrading Client Service
Sinopec Lubricant Company always upholds the commitment of “every drop of oil counts” and adheres to the target of maximizing clients' value. Drawing on years of experiences, the company established a “Creating Value for Client in Total Life Cycle” quality management system, which was nominated for an award in the 2nd China Quality Award sponsored by China's General Administration of Quality Supervision and received satisfaction and acclaim by experts in the industry.
In 2016, Sinopec Lubricant Company manufactured 34,240 consignments of lubricant grease with 100% passing rate. The company proactively conducted self-random-test of 19 consignments of products in 10 categories, and accepted random-test of 104 consignments of products made by quality and market supervision department at various levels, all passed with reliable performances.
Case
Case
Advanced quality management “Creating Value for Client in Total Life Cycle” by Sinopec Lubricant Company
Sinopec always adheres to the policy of always leading in quality and the target of satisfying clients in quantity and quality. We constantly improve quality management from the aspects of management system, product research and design, raw material procurement, standardized operations, quality control, client service and quality cultural construction, aiming to provide our clients with safe, healthy and reliable products.
Product Quality Guaranteed
Index 2014 2015 2016
Passing rate of chemical products (%) 100 100 100
Sales passing rate of petrochemical products (%) 100 100 100
Random-test passing rate of oil products (%) 100 100 100
Index 2014 2015 2016
Resolve rate of client complaint on refined oil products (%) 100 100 100
Client satisfaction rate of lubricating products (%) 80.8 80.9 85.0
Resolve rate of client complaint on lubricating products (%) 100 100 100
Client loyalty of chemical products (%) 98.6 98.2 98.4
Resolve rate of client complaint on chemical products sales (%) 100 100 100
platform, client complaints and feedback, client satisfaction surveys etc. We constantly keep improving client information protection system and relevant measures to safeguard client privacy and information security.
The system, integrated with Sinopec Unified Call Center, uses unified client service to conduct client identification and advice gathering, makes profound analysis on service information of different channels with the assistance of classification of clients’ profile, and keeps improving client experience from various channels to enhance operation efficiency and Sinopec brand image.
Upgrading product and service quality from the very beginning of design by formulation and implementation of “Design and Development Management Procedures”.Making raw materials quality reliable by extending quality assurance to manufacture department in line with “Supplier Management Procedures”.Controlling key product manufacture by establishing “Production and Process Control Procedures” to ensure stable performances of products and improve process control ability.Setting up “Inspection and Laboratory Control Procedures” to bring about whole process supervision and measurement, and establish internal control indicators more strict than those of product standard to keep testing error acceptable inside manufacture and clients’ value fully guaranteed.
overall client satisfaction of lubricating products was
85%
70%
higher than the industry average of
In 2016
Integrated Platform
Sinopec ClientService System
Enterprise ERP System
Fuel Card System
CRM Logistics OA and other system
Client Service Analysis (BW)
Client Service Subsystem (CRM interaction center, services)
Call Center Subsystem
Clients Other Services
SMSWEB
ServicePhone Calls
66 Value Creation • Partnering for Win-Win 672016 Social Responsibility Report
Responsible Value Chain
The success of Sinopec comes from the engagement and support of its suppliers, contractors and strategic business partners. We support national industrial development by proactively promoting responsible procurement, improving supplier and contractor management, and developing strategic cooperation together with multi-channel cooperation.
In 2016, Sinopec continued making efforts to improve contractor management system. We set up contractor integrity evaluation system, optimized selection mechanism, reinforced performance appraisal and infringement punishment toward contractors together with their key administrators and staffs.
Driving Industry Growth
Responsible Procurement
We define bidding and purchasing as the main pattern in responsible procurement and keep maturating bidding and purchasing management by optimizing bidding process and building e-commerce platform. The Company comprehensively promotes bidding and purchasing in accordance with laws and regulations to ensure transparency, centralized supervision and open operation in order to build an open and fair business environment.
Supplier and Contractor Management
During 2016, Sinopec kept optimizing supplier management with a series of practical measures, namely establishing standard supply resources qualification system, improving dynamic quantization evaluation system, promoting construction of market integrity system and suppliers training, so as to reinforce suppliers’ professional capability and sense of social responsibility and power common development of all suppliers.
Index 2014 2015 2016
Rate of suppliers with ISO9001 certification (%) 57.2 53.9 57.6
Rate of suppliers with ISO14000 certification (%) 23.4 24.2 30.2
Rate of suppliers with ISO18000 certification (%) 2.7 18.4 25.4
Index 2014 2015 2016
Rate of contractors with ISO9001 certification (%) 100 100 100
Rate of contractors with ISO14000 certification (%) 100 100 100
Rate of contractors with ISO18000 certification (%) 100 100 100
Supplier HSE performance evaluation systemISO14000 certification (for environment management)
ISO18000 certification (for occupational health and safety)Production safety and emergency response system as well as labor protection
Supplier fulfillment of social responsibilitiesEmissions and pollutants treatment and controlCertification of green and low-carbon company
Supplier on-site Evaluation and Assessment Standards
Sinopec attaches great importance to carrying out strategic cooperation with partners in resources, technology, information sharing, combined storage, and optimization of business models to obtain win-win results.
Forging Strategic Partnership
Sinopec signed 13th Five-Year Plan Framework Agreement on Strategic Cooperation with Shanxi Provincial Government, according to which both parties will explore opportunities on coal-bed methane development, natural gas supply, service stations, construction of oil storage and refined oil pipeline, coal chemical projects, etc.Sinopec signed 13th Five-Year Plan Agreement on Strategic Cooperation with Chongqing Government to develop in-depth cooperation on shale gas exploration, natural gas chemical engineering, construction of service stations, etc.Sinopec signed Strategic Cooperation Agreement with China Post to explore opportunities for financial cooperation and logistics cooperation for non-fuel products.
Strategic cooperation projects achieved in 2016
Exploring Multichannel Cooperation
We make great efforts to develop “Internet+Sales+Service” new business model to build a more open and effective new business ecosphere. We will build a multilane bridge of cooperation by expanding crossover business pilots and sharing beneficial resources to reach win-win results for everyone.
In November of 2016,Sinopec Sichuan Vinylon Works launched online business and received first e-commerce order on Alibaba B2B Platform. Currently, SVW has opened online sales of more than 10 products in four categories, such as PVA, VAE, vinylon fiber and methyl acetate, receiving great attention and enquiries from domestic and international clients from more than 10 countries including Korea, UAE, Iran, India, etc.
Case
Sinopec promotes the development of high-end national equipment manufacturing. In 2016, we formulated a localization plan of key equipments for the 13th Five-Year Plan period, pushed forward R&D on national key equipment manufacture, which is indispensable for major projects concerning shale gas exploration and LNG, striving to achieve localization of key equipments and material.
Invigorating “Made in China”
Intelligent manufacturing of special boiler
In December 2016, the tail gas burner waste heat boiler developed Puguang gas purification plant of Sinopec Zhongyuan Oil Field was installed and test run was successful. This ended the monopoly by imported equipment in China’s high-sulfur gas field and strengthened China’s intelligent manufacturing.
Sinopec Petroleum Equipment Co. developed complex bridge plugs easy to mill with high performance in sealing, stability and resistance to pressure. The self-developed product made great contribution to the development of shale gas and was featured on CCTV special report
Case
68 Value Creation • Partnering for Win-Win 692016 Social Responsibility Report 69
We keep pushing forward our overseas business development and actively fulfill overseas social responsibility through complying with international principles and defending human rights, safeguarding overseas security, health and environment, and contributing to local economic growth. We promote cross culture integration and successfully build up international corporate citizenship image.
Best Practice in Overseas CSR
Overseas Businesses
By the end of 2016, our business had covered 76 countries and regions in the world, contributing energy resources to social and economic development.
Oil & gas business
As of end 2016, Sinopec operated 50 oil and gas exploration projects in 26 countries from six oil and gas producing regions, namely Africa, South America, Middle East, Asia-Pacific, Russia-Central Asia and North America. Overseas equity production totaled 42.95 million toe, of which 15.55 million toe production was from “Belt and Road” countries.
Refining business
By the end of 2016, Sinopec had carried out 4 overseas refining project. YASREF, the Company’s first refining joint venture, started operation. In the year, Sinopec successfully completed acquisition of a 10% stake in SIBUR. The NBR joint venture in Krasnoyarsk of Russia, and the lubricant plant with supporting tank farms and ports in Singapore were in smooth operation.
Service & engineering business
In 2016, Sinopec carried out 357 international oilfield service projects in 38 countries, and 52 overseas refining engineering projects in 10 countries.
International trade business
In 2016, Sinopec traded in the global market 320 million tonnes of crude oil, 39.64 million tonnes of refined oil and 5.925 million tonnes of LNG.
Storage business
At the end of 2016, Sinopec had 3 overseas storage projects. The Fujairah and VESTA storage joint ventures were in good operation.
On 25th June 2016, Sinopec signed a cooperation agreement with Rosneft to deepen win-win cooperation
In 2016, Sinopec Petroleum Engineering and Construction Co. completed and tested the Yanbu-Medina water pipeline 3rd phase EPCC project by Saline Water Conversion Corporation (SWCC). The project, supplying water to hundreds of thousands of local residents, gained great reputation in the country
69Value Creation • Partnering for Win-Win
70 Value Creation • Partnering for Win-Win 712016 Social Responsibility Report2016 Social Responsibility Report
Recruiting Local People
Under the framework of building an international talent pool and recruiting local people, Sinopec constantly provides job opportunities for local people and diversifies employee structure. We respect human rights and secure employees’ legitimate right to maintain sustainable development. We fully respect the local traditions and religious belief. We are dedicated to enriching employees’ life, promoting cross-culture communication and encouraging integration between Chinese expats and local employees. By the end of 2016, the number of overseas employees totaled 50,200, of which 69% were local.
Promoting Local Social and Economic Development
Sinopec maximizes local procurement to drive the development of local companies. We actively participate in public welfare causes to improve local people’s life by supporting infrastructure construction, promoting education, helping disadvantaged groups and contributing in disaster relief and rescue. We give full support to employees participating in community voluntary activities.
HSSE Management Helping Local Communities
Improving public security management institutional system Carrying out public security risk evaluationProviding intensive overseas public security trainingFully implementing security measures
Reinforcing physical and mental health management of employeesProperly handling overseas emergenciesSteadily carrying out overseas public security auditing
In Tanzania, we offered sustainable agricultural techniques training to individual farmers and unemployed young people to improve food security. We also helped resolve solid residue problem in cities
In Morocco, we cooperated with retired volunteers of “Education without Borders Program” to carry out training for young preschool teachers and experienced teachers in modern education, documents and library management, aiming to improve rural children’s early education
Index 2014 2015 2016
Expenditure on overseas public security (HQ) (million yuan) 4.99 6.05 7.42
Total process environmental protection management, fulfilling the idea of green growth
SIPC put emphasis on environmental protection and ecological conservation while developing projects, implementing total process management of environmental protection and making efforts to reduce impact to the environment.
Making environment management plan, according to which all projects must pass environmental impact assessment.Drilling high-cost inclined wells in South America to lower impact on ground ecosystem.Carrying out additional construction of monitoring points along crude oil pipelines with high-tech automatic alarm system to reduce oil-leaking risk.Optimizing operation areas selection. We select areas free of government designated environmental protection zones, and strive to protect the environment and reduce our impact.Establishing general environmental protection center to reduce emission of “three wastes” (waste gas, waste water, and solid waste) for better recycling.Inviting people from local governments and media to supervise environmental protection on-site.
We strictly comply with laws, regulations, and HSSE standards of host countries, and attach great importance to HSSE management on project sites. Regarding safe operation, we try our best to lower health, safety and environment risks by following “ALARP” principles, striving to achieve “zero accident, zero injury and zero damage to environment”. As for environmental protection, we make efforts to improve environment management system and carry out rigorous supervision and pollution control measures to promote energy saving and emission reduction and active responding to the climate change. In terms of public security concerns, we continuously refine our overseas public security management system by strengthening risk evaluation and control, risk prevention and protection, emergency management and disposal, supervision and inspection. Moreover, we add auditing mechanism to public security management system. We constantly provide good healthcare services, reinforce health risk prevention and promote mental health of employees. By the end of 2016, Sinopec had achieved “zero death” in overseas public security for 9 consecutive years.
Highlights of Overseas Public Security Management in 2016
Case
72 Value Creation • Partnering for Win-Win 732016 Social Responsibility Report
EPEC, A Platform for Business Eco-system
72 73
110,000Total registered users reached
844,000
77.4Online registered products totaled
The total trade volumeon EPEC had reached
Up to March 2017
billion yuan
On 18 April 2016, EPEC, China’s largest industrial products e-commerce platform, was online.
Based on our solid industrial chain, we make great efforts in supply chain innovation based on internet technologies, and explore new business models. EPEC is an industrial products e-commerce platform, aiming to integrate quality resources, increase efficiency and elevate supply-side structural reform.
EPEC is an integrated SC2B (Supply Chain to Business) e-commerce platform aiming to meet tremendous needs from industry giants, such as Sinopec. Apart from meeting Sinopec’s procurement demand, the platform utilizes Sinopec advantages of professional procurement in technology, purchasing channel, quality control and sales service, integrates and amplifies internal and external resources and adds value to the users. EPEC offers procurement service, sales service, financial service and supporting services and is unique in professional quality procurement, compliant tendering and bidding, tailor-made and attentive services and innovative resources sharing, making procurement more professional.
Up to March 2017, the total trade volume on EPEC had reached 77.4 billion yuan, and online registered products totaled 844,000 types. 34,000 suppliers and 3,456 purchasing companies had registered on the Platform and total registered users reached 110,000. Page views rose from 570,000 to 1.94 million per month, total completed orders reached 99,000. In addition, the platform granted loans totaling 550 million yuan to suppliers through supply chain finance, and accumulated online transaction reached 3.93 billion yuan.
Sinopec actively responded to the internet plus strategy by building EPEC on the basis of advanced internet technologies. The Platform will interconnect resource management, bidding management and quality control to establish an open and win-win market, which will sustain EPEC's growth in the long run and promote collaborative, sharing and win-win results among enterprises along the supply chain.
-EPEC Supplier Representative Stephen Hinson, President of GE China.
Sinopec innovatively upgraded traditional procurement business by fully using IT technologies, built an industrial products e-commerce platform EPEC and opened it to the society, reflecting central SOEs' high sense of responsibility. Through EPEC, the Company's rich experience in procurement management will improve medium, small and micro-sized enterprises' procurement management and benefits. Moreover, the new “Internet + Supply Chain” business model created by EPEC will boost supply-side structural reform of China and become a new engine for economic growth.
-Lin Qingmiao, Deputy Director General of SOE reform Dept., SASAC
Industrial Version of “Taobao”- EPEC
Forging New Business Model of “Internet + Supply Chain” to Build A Sound Business Eco-system.
EPEC Contributes to Sharing Quality Resources
“
“
”
”
Feature
Value Creation • Partnering for Win-Win2016 Social Responsibility Report
74 Social Contribution • Shared Benefit 752016 Social Responsibility Report
China's 13th Five-Year Plan stipulated that
the government will give full support to the
development of charity causes, improve constant
social donation mechanism and broadly mobilize
social forces to expand social relief and assistance
together with voluntary service.
We stick to paying taxes according to law to
serve social and economic development. We
strengthen community management and keep
improving community image in order to jointly
build harmonious community. We are dedicated
to public welfare and charity causes with
actions giving back to society, aiming to elevate
people's well-being and make contribution to a
moderately prosperous society.
Our Actions
Sustainable Development Background
SDGs
Sustainable Cites and Communities
Peace, Justice and Strong Institutions
82
Tax Contribution
Community Development
Public Welfare
Social Contribution
76767780
Feature
The Gas Station That Cares
A Better Road Home
Shared Benefit
Social Contribution
76 Social Contribution • Shared Benefit 772016 Social Responsibility Report
Tax Contribution
Community Development
In 2016, the Company further deepened system mechanism reforms in our communities, gradually divested community-related water, power, gas and heating supply, property and other services from our core businesses. We continued streamlining administration to make our community management more sound and effective. People-benefiting projects, with a total investment of 3.66 billion yuan, were fully executed to continuously promote comprehensive revamping for those old and rundown communities, and living conditions
Taxes are collected from the people and should be used for the people. Paying taxes according to law is our bound duty. Sinopec pays taxes fees, contributing to national economic development and social stability. The Company’s taxes and fees contribution in 2016 totaled 353.6 billion yuan.
were greatly improved. We finalized the shanty area transformation, enhanced and standardized housing construction for self-use, and effectively upgraded the living environment. The Company continued with the construction of a safe & happy, sincere & serving, environment-friendly, healthy & pleasant and civilized & harmonious community, constantly improving service and management levels to build up a harmonious and stable community, making people feel happy.
The newly-constructed community called Huashan in Sinopec Henan Oilfield by Cuihu Park
While pursuing our own development, the Company is determined to deliver care through activities including social welfare, brand public welfare, social contributions and environmental protection, and benefit the individuals and the society in return.
Building up a disciplined visual public welfare system focusing on our brand image, the Company highlights our unified image for public welfare, which are applicable to corporate welfare-delivering areas, including charity affairs, poverty and disaster relief, environmental protection, social public services, volunteer service, community development and overseas public welfare. This demonstrates our responsible brand image caring of benefiting the individual and society.
Public Welfare
Environmental Welfare
Targeted Poverty Alleviation Sinopec Lifeline Express
Serving for High farmingDisaster Relief
Serving Important State EventsVoluntary Service
Easy Joy·Zhuoma Spring Water The Great Wall Lubricant Product-supported Welfare
Social Welfare
Rewarding the Society
EnvironmentalProtection
Brand-supported
Public Welfare
The Gas Station that Cares, A Better Road HomeThe Caring Gas Station
355.72015
330.72014
billion yuan billion yuan
353.62016
billion yuan
Taxes and Fees Contribution
221
28
By the end of 2016
N u m b e r o f m o d e l communities constructed by Sinopec with 4A or 5A standards
P e r c e n t a g e o f 4 A o r 5A communit ies in a l l communities run by the Company
%
78 Social Contribution • Shared Benefit 792016 Social Responsibility Report
The Performance of
Sinopec Lifeline Express
From 2004 to 2016, we
accumulatively donated
136.4 million yuan
By the end of 2016, Sinopec
Lifeline Express had traveled
to 32 cities/counties in 18 provinces with altogether
35 stops
We accumulatively cured
38,046 cataract patients.
We donated to build 15 Sinopec cataract treatment
centers
We built and named
Sinopec ophthalmic surgery
training center in Xinjiang
Autonomous Region
We donated to name a train
hospital Sinopec Lifeline
Express
We won Special Brightness
Award from China Lifeline
Express Fund successively
from 2004 to 2016
With an annual increase rate of 10%, there are roughly 5 million cataract patients in China, most of whom are living in poverty-stricken rural areas and urgently require treatment. The “Lifeline Express” charity project is a unique mobile hospital built on a train donated by China Lifeline Express Fund, tailor-made for those who need urgent help.
Sinopec has been donating to the “Lifeline Express” charity project since 2004. In 2007, with an aim to cure more cataract patients in poverty, Sinopec spent 30 million yuan and built the first and only SOE-donated hospital train named “Sinopec Lifeline Express”. The train travels to 3 different impoverished
Sinopec Lifeline Express Providing a Journey of Hope
regions nationwide every year to treat cataract patients for free. In 2016, the train made stops at Luoyang of Henan Province, Anshun of Guizhou Province and Ziyang of Sichuan Province and cured 1,023, 1,026 and 1,199 patients respectively.
“I am now able to read every single character, and it’s amazing!”
——He Guifang, a treated cataract patient,
67 years old, from Ziyang of Sichuan Province
“The doctors on board are nice, kind and real experts. After all these years, I finally regain my
eyesight!”
——Li Heming, a treated cataract patient,
57 years old, from Anshun of Guizhou Province
Social Welfare
“The Caring Gas Station”, a Sinopec charity project starting from 2014, combines public welfare with Sinopec core business by setting up a “caring service counter” in Sinopec gas stations. We provide free hot water, tea and medical kits to our customers, or even hot water and food heating service to sanitary workers and taxi drivers in some of our stations.
We build free services in our caring station as a brand with care, which demonstrates our determination to make voluntary service disciplined, standardized and branded in order to better outline our corporate image.
Sinopec strongly popularizes knowledge of law. We donated 10 million yuan in total to China Legal Aid Foundation in the past 5 consecutive years, sponsoring 1+1 China Legal Aid Volunteer Action Program and providing legal aid to poverty-stricken areas. The Foundation sent over 200 volunteers to 12 provinces, regions or cities in west China and 115 counties or districts in Xinjiang Production
The Caring Gas Station
Popularizing Knowledge of Law
“The Caring Gas Station” brings warmth
Case
In October 2016, Sinopec Jiangsu Oil Products
Company, together with Jiangsu Department
of Housing and Urban & Rural Development
and Jiangsu Federation of Trade Unions, held
an opening ceremony for the establishment
our caring lounge for sanitary workers in a gas
station on the Huxi Street, Nanjing City. In the
meantime, 171 such caring lounges inside our
gas stations in 13 cities of Jiangsu Province
were officially put into use, where sanitary
workers could refresh themselves and enjoy
caring services.
We selected Jiangsu to establish caring
lounges, extending our social welfare
programmes.
13
171
Sanitary Workers’ Lounge in Jiangsu Province
Cities
No. of Lounges
and Construction Corps to provide legal services. 65,000 legal aid cases were dealt with, benefiting more than 100,000 people and retrieving economic loss of 3.92 billion yuan for poor people with a satisfaction rate of 99%. 654 workshops were held, with over 70,000 visitors for legal consultation and 6,753 disputes settled, making the significance of rule of law more widely accepted.
80 Social Contribution • Shared Benefit 812016 Social Responsibility Report
The spring, summer and autumn farming periods are the peak demand seasons for fuel products. In order to ensure stable supply for fuels during farming seasons, Sinopec makes preparation plan for marketing and takes concrete measures to guarantee sufficient fuel products. We always endeavor to improve our policy to support agriculture, give favorable treatment to farmers and optimize our services.
In times of disasters including floods, fires and typhoons, we immediately activate emergency response system, arranging logistics, allocating resources, opening fast fueling lines and donating Zhuoma spring water and instant food to protect people and their belongings. In 2016, Sinopec Jinling Petrochemical Company, Gaoqiao Petrochemical Company, Yizheng Chemical Fiber Company and Yangzi Petrochemical Company provided assistance to tackle the explosion of Jingjiang warehouse.
For the G20 Hangzhou Summit 2016, Sinopec Zhejiang Oil Products Company, the major gasoline supplier, enhanced resource allocation, optimized logistics, strengthened inventory management, guaranteed product quality & quantity, and provided stable, safe and orderly service.
Sinopec encourages its employees to participate in voluntary services, send their love and care to the society by taking real actions, and scale up the voluntary services. The spirit of “Devotion, Love, Help and Progress” has become a Sinopec culture regarding voluntary service.
Through actively providing in-house branded products to public charity activities, the Company has created social value, built up brand image and promoted brand excellence.
Brand Supporting Public Good Supporting Major National Events
Voluntary Service
Social Contribution
Serving Peak Farming Seasons
Disaster Relief and Rescue Caring for Environment
Index 2014 2015 2016
No. of volunteers (10 thousand) 80 84 150
Hours of services (10 thousand) 40 42 80
We develop with the society and the society shall be awarded in return. For years, Sinopec has been awarding the society whole-heartedly. We support farmers for agriculture development in the countryside, deal with post-disaster rescue and relief work, sponsor major national events and provide voluntary services.
The Company actively takes part in various environment-caring events, calling for the awareness of environment and home protection.
Sinopec Easy Joy Zhuoma Spring Water, the only official drinking water for the IAAF World Challenge Beijing in 2016
Sinopec Great Wall Lubricant, providing astronaut-experiencing camps to about 400 children for 9 consecutive years in Beijing Aerospace City
Volunteers from Sinopec Jiujiang Petrochemical Company are together with children from migrant workers’ families and children with autism
Sinopec Great Wall Lubricant, fully sponsoring the China-Russia Silk Way Rally in 2016
Sinopec Great Wall Lubricant, the tile sponsor for China Touring Car Championship for 5 years in a row
Case
82 Social Contribution • Shared Benefit 832016 Social Responsibility Report
The Gas Station That CaresA Better Road Home
82
Feature
83
On occasion of every spring festival holiday, there are tens of thousands of motorcycle-riding migrant workers, travelling hundreds of kilometers home from Guangdong province to Guangxi, Hunan, Guizhou and Sichuan provinces, closing up a year of hard work. In order to make those people’s road home safe and warm, we conduct “the Gas Station that Cares, a Better Road Home” program in 5 consecutive years, starting from 2013.
In 2017, our service was upgraded to better meet our special customers’ needs.
Warm in-station complimentary services have been extended to Guangdong
and Guangxi province as well, with 238 stations involved
1+10+X free services are provided
We provide 10,000 packages of services (free fueling of 1 tank, 1 insurance for motorcyclist accident, 1 suit of warm clothing and 1 Easy Joy
gift bag )
9 bus lines are arranged to Guangxi province, providing free lifts to migrant
workers, children and the pregnant
Related reading
In 2016, “the Gas Station that Cares, a Better Road Home” program was reported by CCTV and made a documentary.
Episode 1 Episode 2
“1”Caring for the elderly, children and the pregnant. Special lounges are designated, where milk and congee can be heated free of charge.
“10”Providing 10 free complimentary services, including free medicine, hot water and ginger soup.
“X”Varying services from free driver lounges, free engine oil change to free tourist maps, etc.
Free
services
In the past years, our 4-year old child sat between my wife and me on our motorbike, and it was a chilling and tiring 10-hour ride for home. Things changed this year, and my wife and child
went home by Sinopec free bus, comfortable!
——Chen Jinyi, a migrant worker
from Hezhou, Guangxi
“
“”
For years, we’ve seen lots of elderly people, children or even the pregnant on motorcycles for long-distance travel across provinces, heading home in bad weather conditions. Considering their safety, we designed special bus lines, together with Guangdong transpor tation and traff ic
organizations, to send those people home.
——Chen Chengmin, President of Sinopec Guangzhou Oil
Products Company
”
1
10
+
+
X
238
Number of "the gas
station that cares"
Social Contribution • Shared Benefit2016 Social Responsibility Report
84 CSR Management • Pursuing Excellence and Creating Value 852016 Social Responsibility Report
In 2016, SASAC issued “the Guidance on SOE’s Better Implementation of CSR”, which clarified requirements SOEs shall follow regarding CSR development. SOEs should deepen CSR philosophy, identify CSR issues, c o m b i n e C S R w i t h o p e r a t i o n , promote CSR communications and enhance CSR support. SOEs shall pursue maximum comprehensive value economically, socially and environmentally, so as to achieve a sustainable development.
We stick to the mission of “Powering Better Life”, nurturing our social responsibility culture, consolidating our CSR management, innovating CSR communications, promoting the integration of CSR, corporate strategies and daily operation in order to achieve a common sustainable development of the Company, the society and the environment.
Our Actions
Sustainable Development Background
92
CSR Model
CSR Management
CSR Communication
868790
Feature
Fulfilling CSR in 10 Years,
Embracing New Journey
Pursuing Excellence and Creating Value
CSR Management
86 CSR Management • Pursuing Excellence and Creating Value 872016 Social Responsibility Report
Sinopec attaches importance to fulfilling its CSR, adhering to the mission of “Powering Better Life”, sticking to the primary target of value creat ion, upholding the “Five Growth Strategies” of Creating Value, Driving Innovation, Optimizing Resources, Open
Sinopec CSR is integrated with its corporate culture. We vigorously uphold the good traditions of “to love China and revitalize Sinopec”, “Hardworking” and “Three Honests”, carry forward fine styles of work “being Strict, Stringent and Steady” and “to elaborate with preciseness”, making “Powering Better Life” our mission and “Building a World Leading Energy and Chemical Company” our vision. We set up “People, Responsibility, Integrity, Excellence, Innovation and Win-Win" as our five core values with emphasis of “Putting People First, Green and Low-carbon Development, Social Responsibility, Internationalization and Market Orientation”. Given our corporate culture is related to shareholders’ demand, we make efforts to integrate shareholders’ demand into corporate management and daily operation to maximize corporate value and satisfy reasonable needs, which has become the Company’s special CSR culture system.
In 2016, we formulated Sinopec 13th Five-Year Plan and accordingly Sinopec CSR 13th Five-Year Plan. We defined overall working plan and approach, giving full support to building a World Leading Energy and Chemical Company and contributing to the social and economic development of better quality, higher efficiency and sustainable growth.
Culture Nurturing
Strategy Guiding
CSR Model CSR Management
Cooperation and Green Growth based on the development concepts of innovative, coordinated, green, open, and shared development regulated in China’s 13th Five-Year Plan. The Company and its stakeholders jointly promote CSR fulfillment in five aspects
W e d e v e l o p o u r businesses in line with people’s aspirations for better life, providing m o r e a d v a n c e d t e c h n o l o gi e s a n d premium services to power better life.
We stick to a green, l o w - c a r b o n a n d susta inable path t o a c c e l e r a t e r e s t r u c t u r i n g o f o u r b u s i n e s s e s a n d o p e r a t i o n s , c o n t r i b u t i n g t o r e s o u r c e s a v i n g and environmental protection.
We a d h e re to t h e win-win cooperation philosophy, bringing b e n e f i t s t o a l l stakeholders along with our growth and development.
Powering Better Life
of energy supply, low-carbon development, va lue creat ing, soc iet y rewarding and responsibi l i t y management, a iming to constantly create value and power to achieve sustained economic, social and environmental development together.
87
Powering Better Life
Governments
Energy Supply
Low Carbon
ValueCreation
Social Contribution
CSR Management
Shareholders and Creditors
Customers
Employees
Business Partners
Relevant Organizations
NGOs
Communities and the Public
Fundamental Management
Responsibility Integration
Overseas CSR Fulfillment
Public Welfare and Charity Causes
OperatingTransparency
CapabilityBuilding
Prioritiesin Sinopec CSR 13th Five-Year
Plan
An Oil-Drop of Responsibility—CSR of a Value-Creating Company
CSR Management • Pursuing Excellence and Creating Value
88 CSR Management • Pursuing Excellence and Creating Value 892016 Social Responsibility Report
The decision-making level of Sinopec social responsibility is group social responsibility committee, whom raised proposals to Board of Directors. The social responsibility office under public communications department, affiliated to social responsibility committee, is in charge of strategic planning, organization, negotiation and promotion of corporate social responsibility work, compiling and release of corporate social
In order to improve the relevance and responsiveness of this report, Sinopec conducted a social responsibility substantial issue analysis survey in 2016, and identified the most substantial critical issues for this year.
Based on the initially identified 25 issues, we developed a questionnaire on Substantial Issue Analysis for Sinopec Social Responsibility Report, and conducted the survey among internal stakeholders including government agencies, investors, partners, employees, consumers, non-governmental organizations and media. According to the survey results, we established a substantial issue analysis matrix on the basis of two dimensions of “impact on Sinopec’s sustainable development” and “importance to stakeholders”, and set a priority order for the issues.
We reviewed the selected social responsibility issues and confirmed the substantial ones.
Responsibility Integrated into Management
responsibility, and responsibility communication, responsibility broadcast, assessment and study. Each department in headquarters is responsible for part of social responsibility work according to functional division. Each subsidiary builds social responsibility management organization to actively promote corporate social responsibility practice and ensure the work carrying out in a smooth way.
Issue Identification
Issue MatrixSource of Issues
In 2016, Sinopec held the award for excellent
company’s CSR practice. 103 CSR cases were
selected from 70 departments and subsidiaries
involving in the issues of energy supply, safety
production, energy saving and emission
reduc tion, employee care and targeted
poverty alleviation. All cases were compiled
into Powering Better Life —Sinopec CSR
Practice Cases. Through the release of these
cases, we take fully use of its demonstration
effect and enhance social responsibil ity
management. Meanwhile, with the broadcast
a n d p ro m o t i o n o f c a s e s , we i n c re a s e d
stakeholders’ acknowledge of Sinopec and
improved brand images. We also hope to form a
promotable way to develop Chinese enterprises
social responsibility with stakeholders by
summarizing the cases.
Powering Better Life—
Sinopec CSR Practice Cases
The 1st excellent company CSR practice award
Case
Based on the direction of national macro policy, social responsibility standard analysis at home and abroad, corporate development strategy and plan, industrial sustainable development issues benchmarking as well as taking into account concerns of investors, we identified 25 issues relating Sinopec’s sustainable development.
Issue Validation
Board of Directors Board of Supervisors
Strategy Committee
Nomination Committee
Remuneration and Assessment
Committee
Audit and Risk Management
CommitteeCSR Committee
HRDept.
Safety Super-visionDept.
Energy Manage-ment and Environ-mental
Protection Dept.
Commu-nity
Manage-mentDept.
Super-visionDept.
Communi-cationsDept.
(SocialRespon-sibilityOffice)
PartyManage-
ment Dept.
Other
Social responsibility management
Importance for stakeholders
Impact on Sinopec’s sustainable development
Coordinated development of traditional and emerging business
Work safety Product quality management
Public welfare and volunteer service
Social responsibility abroad
Community development“Belt and Road” and win-win overseas cooperation
Employee rights and interests protection
Employee career development
Occupational health and safety
Employee care
Attention to the rights and interests of investors
Supply chain management
Providing clean energy
Energy saving and emission reduction
Water resources management
Ecological restoration and biodiversity
Innovative development
Stakeholders
Risk management
Anti-corruption campaign
Corporate culture construction
Management optimization and upgrade
Coordinated industrial chain development
TheSecret-ariat of
BoD
Management Committee
1 8 15 22
29
16 23
3
1017 24
4
11
1825
5
12 196
1320
714 21
23
24
25
14
37
20
18
10 16
2 11 12
22
15
1
8
13
21
5 9
19 17
6
4
90 CSR Management • Pursuing Excellence and Creating Value 912016 Social Responsibility Report
CSR Communication
CSR
Communication
Publication of CSRPublished Sinopec CSR 2015
Published Targeted Poverty Alleviation White Paper (2002-2016)
Journal platformChina Petrochemical News
Sinopec Monthly
New Media platform
Sinopec Official Microblog: http://weibo.com/sinopec
Sinopec Official Wechat: woshi_xiaoshitou
“Sinopec Blackboard News” Official Wechat: shhbb2014
Twitter: @SinopecNews
Facebook:@Sinopec
“Internet+” Platform Established Sinopec on-line museum: museum.sinopec.com
“Entering Sinopec”
Activities
By the end of 2016, organized “Sinopec Open Day” Campaign in consecutive 5 years
By the end of 2016, engaged “Social Supervisor” Campaign in 6 consecutive years
By the end of 2016, held Media communication conference in consecutive 7 years
Supporting Sustainable
Development Goals
China Summit 2016
Supported Sustainable Development Goals China Summit 2016 organized by UN Global Compact Chinese Internet
Organization. “Lighting the bright future—Results Album of realizing sustainable development goals”
Participating in CSR
Communication activities
Actively participated in activities including “Sharing responsibility charity forum”, “The journey throughout China”,
“Chinese Chief Responsibility Officer Plan”, “China social responsibility one hundred experts forum” etc. to strengthen
the communication and experiences exchange with others and enhance responsibility ability.
Participated “Chinese enterprises CSR seminar”, “HNA CSR Forum” etc., the Bio-jet fuel self-developed by Sinopec was
selected to an good example complied into Green Aviation White Paper 2016
By analyzing the concerned issues raised by stakeholders, we put the related requests into corporate sustainable development action
Government shareholders and creditors
customers employeesbusinesspartners
related agencies
non-governmental organizations
communities and public
goals and plan to broaden diversified social responsibility communication channel and broadcast our CSR concept.
On 22nd April 2016, Sinopec launched “Discovering
intelligent energy-Public Open Day” Campaign
and proposed the initiative of “Advocating green
and simple life, saving energy and utilizing energy
intensively”, coinciding the 47th “World Earth Day”.
At the same time, there were 12 subsidiaries of
Sinopec from 9 domestic cities holing “Public Open
Day” Campaign and attracted thousands of visitors.
Chinese enterprises’ first on-line museum—
Sinopec on-line museum was setting up officially
and opened to the public on 9th Nov, 2016. The on-
line museum is an innovation using the technology
By having a site visit to production plant, control center, waste water treatment center, and joining interactive
activities, visitors gained a full and deep understanding of green production process in Sinopec Oilfields,
refineries and gas stations, as well as acknowledge the close relations between petrochemical and people’s
daily life in basic necessities of clothing, food, shelter and transportation.
Case
Established first on-line museum among domestic companies—Sinopec on-line museum
China’s largest “Public Open Day” Campaign among industrial enterprises
It was China’s largest “Public Open Day” Campaign
launched by industrial companies, and the first one
among state-owned companies. It demonstrated
the sincerity of openness for communication to
the public, and practicing green and low-carbon
development. Since 2012, 62 subsidiaries of Sinopec
have held more than 2,000 “Open Day” events, and
invited over 80,000 people.
of virtual reality, digital media and integrated with
popularity, interactivity and readability.
62
80,000
Subsidiaries of Sinopec
Since 2012Held “Open Day” events
Invited over
people
SinopecOpen Day
Upstream
Feel the spectacular
beauty of oilfield
Mid-stream
Garden factory of animal
habitats
Downstream
Humanized and convenient
gas station
Sinopec Zhenhai Refining and Chemical Company: Egret Garden (November 2016, the 100th “Public Open Day” Campaign)
92 CSR Management • Pursuing Excellence and Creating Value 932016 Social Responsibility Report
Ful�lling CSR in 10 Years, Embracing New Journey
2016 Social Responsibility Report92
Feature
93
The year of 2006 was the first year of CSR for Chinese enterprises. Sinopec actively took social responsibility and compiled �rst CSR (Sinopec CSR 2007) in 2008. Since then, Sinopec has been continuously practicing and improving social responsibility work and published ten CSR reports by 2017.
Over the past ten years, Sinopec has insisted on deepening social responsibility concept, improve social responsibility management and practice social responsibility activities. Taking CSR as an important carrier, we enhanced responsibility communication, playing an important role in leading sustainable development in the area of economy, society and environment.
Ten Years’ CSR Management
Over the past ten years, by using social responsibility management framework model in six dimensions including strategy, governance, study, integration, performance and communication, Sinopec improved CSR management system in terms of identifying social responsibility concept, setting up social responsibility committee, compiling social responsibility planning and management regulations as well as improving social responsibility communication mechanism. We promoted social responsibility integrated into corporate strategy and management, built social responsibility operation mechanism with company’s own characteristic to make sure the e�ectiveness of social responsibility work.
Ten Years’ Responsibility Practice
Over the past ten years, Sinopec strived to integrate social responsibility with operation and business advantages as well as requests of stakeholders. We continuously promoted responsibility practice in terms of energy supply, technical innovation, customer service, safety and environmental protection, employee care, partnership responsibility, public welfare and overseas social responsibility to boost the coordinated and sustainable development between the company, society and environment.
2009
2010
2011
2012
Set up CSR compiling committee, published Sinopec
CSR2007, released corporate economic, social and
environmental performance
Con�rmed CSR concept—every drop of oil counts
Social responsibility management framework model in
six dimensions �rst used to integrate social responsibility
into corporate strategy and operation
Cooperating with CASS CSR R&D Center to set up Chinese
enterprises CSR R&D Base
Promoted the initiative of Chinese enterprises CSR report
rating and supported the development of domestic CSR
rating system
Held CSR training conference
Set up BoD Social Responsibility Committee
Published Every drop of oil counts—Theory and Practice of
Sinopec CSR
Set up social responsibility management team and
management department to improve social responsibility
management system
2008
Milestones of Sinopec responsibility management
2013
2014
2015
2016
2017
Set up CSR management optimizing team
Issued guidelines for strengthening and improving CSR
management, CSR management regulations
Corporate mission—Powering Better Life
Issued Sinopec CSR Plan
Jointly published Guide 3.0 for the Petrochemical Industry
on Compiling CSR Report by Chinese Enterprises and
developed Guide 3.0 for the Petrochemical Industry on
Compiling CSR Report by Chinese Enterprises on-line
website to make contributions to improvement of
industrial CSR
Issued Sinopec CSR 13th Five-Year Plan
Revised Sinopec CSR management regulations
Published Powering Better Life- Sinopec CSR Practice Cases
in social donation from 2013 to 2016
970million yuan
728.97in designated-areas poverty
alleviation contribution from2000 to 2016
million yuan
2,759in tax contribution from
2007 to 2016
billion yuan
one million jobs provided during the 12th Five-Year Plan
period
7.3%decrease in energy intensity
from 2010 to 2015
6.4%decrease in industrial water
use from 2010 to 2015
93overseas re�ning and
petrochemical engineering projects from 2014 to 2016
overseas oil�eld service projects from 2007 to 2016
4,365
CSR Management • Pursuing Excellence and Creating Value
2016 Social Responsibility Report94 Energy Supply • Promoting Sustainable Development 95
Looking ahead to the 13th Five-Year Plan period, Sinopec will actively adapt
to and positively lead the new normal of economic development. We will
grasp the development trend of the next round of technology revolution,
industrial revolution and energy revolution. Serving the national strategy,
especially the “Belt and Road” Initiative and “Yangtze River Economic Zones”,
we will focus on improving development quality, implementing supply-side
structural reform, innovation talents building, and Party construction. We will
Outlook
94 Outlook 95
attach greater importance to Creating Value, Driving Innovation, Optimizing
Resources, Open Cooperation, Green and Low-carbon, quicken the pace
of restructuring, transformation and become a leader in middle and high-
end markets. Sinopec strives to become outstanding in quality and scale,
improve competitiveness in the global market, fulfill economic and social
responsibilities and realize sustainable development of the Company, the
society and the environment.
2016 Social Responsibility Report
2016 Social Responsibility Report96 97
Index 2014 2015 2016
Total Employees(10,000) 92.7 84.5 75.2
Collective Contract Coverage Ratio(%) 100 100 100
Labor Contract Coverage Ratio(%) 100 100 100
Benefits Package (Insurance & Housing Fund) Coverage(%) 100 100 100
Benefits Package (Insurance & Housing Fund) Payment Rate(%) 100 100 100
Ethnic Minority Employees(%) 2.2 2.2 3.0
Female Employees(%) 30 30 34
Female of Management Positions(%) 26 26 12.6
Ratio of Employees Joining the Trade Union(%) 100 100 100
Investment for Safety Training(10,000 yuan) 27,779 31,045 28,863
Reported Accidents Toll 5 8 3
Death Toll 8 7 2
Death Toll In 1000 People(‰) 0.0129 0.0086 0.0025
Occupational Health Check-up Ratio(%) 98.8 98.9 98.9
Health Check-up and Archive Coverage Ratio(%) 98.8 98.9 98.9
Social Donations(100 million yuan) 2.4 2.0 2.3
Aid Program Investment in Tibet and Qinghai(10,000 yuan) 3,750 3,524 4,042
Special Aid Program Investment(10,000 yuan) 7,749 7,518 8,873
Lifeline Express Cured Patients 3,006 3,286 3,248
Funded Poverty-stricken Students 939 940 1,140
Index 2014 2015 2016
Total Assets(100 million yuan) 22,284 20,585 21,594
Revenue(100 million yuan) 28,899 20,473 19,692
Taxes and Fees(100 million yuan) 3,307 3,557 3,536
Crude Production(10,000 tonnes) 4,379 4,174 3,566
Gas Production(100 million m³) 202 207 216
Overseas oil equivalent( 10,000 tonnes) 4,092 4,436 4,295
Crude Throughput(10,000 tonnes) 23,698 23,829 23,732
Fuels Sales(10,000 tonnes) 18,917 18,933 19,484
Chemical Sales(10,000 tonnes) 6,079 6,287 6,996
Non-fuels revenue(100 million yuan) 171 248 351
Fuel Sales Customer Complaints Handling Ratio(%) 100 100 100
Customer Satisfaction of Lubricant Products(%) 80.8 80.9 85.0
Lubricants Sales Customer Complaints Handling Ratio (%) 100 100 100
Chemicals Sales Customer Complaints Handling Ratio(%) 100 100 100
Number of Patents Application Home and Abroad 5,888 6,128 6,563
Number of Patents Granted Home and Abroad 3,722 4,343 4,878
Index 2014 2015 2016
Energy Saving Rate(%) 0.6 0.7 1.25
Industrial Water Use Change(%) -1.1 -1.0 -1.1
On-spec Water Discharge(%) 99.3 99.8 99.8
Ammonia Nitrogen Emission y-o-y Change(%) -4.2 -3.97 -3.48
Discharged Water COD y-o-y Change(%) -2.5 -4.14 -3.86
SO2 Emission y-o-y Change(%) -8.1 -4.84 -4.07
NOX Emission y-o-y Change(%) -3.9 -4.19 -4.53
Carbon Trading Volume(10,000 tonnes) 210 180 255
Business Performance Social Performance
Environmental Performance
Performance in Key Areas
Appendix
Appendix
2016 Social Responsibility Report98 99
Index
ContentsUN Sustainable Development Goals(SDGs)
GRI Guide on Sustainable Report(G4)
Guide 3.0 for the Petrochemical Industry on Compiling CSR Report by Chinese Enterprises
Page
About This ReportG4-18,G4-23G4-28,G4-30
P1.1-P1.5, P2.1 P01
Chairman’s Address G4-1,G4-2 P3.1-P3.2, M1.4-M1.5,S1.6 P04-P05
About SINOPEC SDGs 16
G4-3,G4-4,G4-6G4-7,G4-8,G4-9G4-14,G4-34G4-35,G4-36G4-37,G4-38G4-42,G4-43G4-45,G4-46G4-56,G4-57G4-58,G4-SO3G4-SO4
P4.1-P4.3G2.1,G2.3-G2.5
P06-P09
Focus one:poverty alleviation & building well-off society
SDGs 1-11,16G4-EC7,G4-EC8 G4-SO1,G4-SO6
S4.1,S4.4-S4.5,S4.10,S4.13,P5.3,G5.5 P10-P13
Focus two: powering “Belt and Road Initiative” & pursuing common prosperity
SDGs 9,10,17 G4-EC8 M2.5 P14-P17
Energy supply: promoting sustainable development
Integrated Business Structure SDGs 7,9,13,16G4-4,G4-EC1G4-EC7,G4-EC8G4-EN19
M1.4,M2.1,M3.1 P20-P22
Diversified Energy Mix SDGs 7,9,11,13
G4-4,G4-EC7G4-EC8,G4-EN7G4-EN19G4-EN27
M2.2, M2.3, M3.1 P23-P29
Leading Technology R&D SDGs 4,9,12 G4-EC8,G4-LA10 M2.17-M2.19,M2.21, M3.3 P30-P33
Stringent Safety and Security Management
SDGs 3,12G4-4,G4-14G4-LA9, G4-LA11G4-EN32,G4-HR7
S3.1-S3.5S3.8-S3.11
P34-P37
Feature: supply-side structural reform for growth
SDGs 7,8,9,12G4-EC1,G4-EC7G4-EC8
S1.6 P38-P39
Low-carbon: building eco-system
Intensified Environmental Stewardship SDGs 3,13,14,15G4-EC2G4-EN29
E1.1-E1.2,E1.4-E1.8 P42-P43
Supplying Clean Products SDGs 3,7G4-EN19G4-EN27G4-PR3
E2.5-E2.6,E3.3-E3.4 P44-P45
Cutting Emission and Energy Intensity SDGs 6,11,12,13
G4-EN3G4-EN8G4-EN16G4-EN19G4-EN27G4-EN30G4-PR3
E2.1-E2.2,E2.18-E2.19,E2.21-E2.24E2.26-E2.30,E2.32,E2.34E2.36-E2.38,E2.40
P46-P50
Nurturing the Eco-system SDGs 12,14,15G4-EN11G4-EN12G4-EN13
E5.1-E5.3 P51
Feature: coping with climate change through carbon asset management
SDGs 13G4-EC8G4-EN19G4-EN27
E4.1-E4.4 P52-P53
Value creation: partnering for win-win
Responsible Care for Employees SDGs 3,5,8G4-LA8,G4-LA10G4-HR2,G4-HR6
S2.1-S2.3,S2.6-S2.7,S2.11S2.13-S2.14,S2.18-S2.20S2.22-S2.31
P56-P61
Tailor-made Services SDGs 9,12G4-4,G4-EC8G4-PR1,G4-PR3G4-PR5,G4-EN28
M2.6-M2.11,M2.13-M2.16 P62-P65
Responsible Value Chain SDGs 9,10,17G4-12,G4-13G4-EN32,G4-LA14G4-LA15,G4-SO10
M3.1-M3.9 P66-P67
Best Practice in Overseas CSRSDGs 3,7,8,910,12,13,16,17
G4-EC7,G4-EC8 S4.1-S4.2,S4.5-S4.7,S4.9-S4.12 P68-P71
Feature: EPEC, a platform for business eco-system
SDGs 8,9,12G4-4, G4-EC1G4-EC8
M3.2 P72-P73
Social contribution: shared benefit
Tax Contribution SDGs 8 G4-56,G4-EC1 S1.5 P76
Community DevelopmentSDGs 1,2,3,4,67,10,11,15,16
G4-EC7,G4-ECBG4-SO1,G4-SO6
S4.1,S4.10,S4.13-S4.15,E5.5 P76-P83Public Welfare
Social Contribution
Feature: the gas station that cares, a better road home
CSR management: pursuing excellence and creating value
CSR Model G4-15,G4-24 G1.1 P86
CSR ManagementG4-18,G4-19G4-20,G4-21G4-34,G4-56
P2.2-P2.3, G1.3-G1.4G2.1-G2.5, G3.1, G4.3
P87-P89
CSR CommunicationG4-15,G4-16G4-24,G4-25G4-26,G4-27
G5.1-G5.6,G6.1-G6.4 P90-P91
Feature: fulfilling CSR in ten years, embracing new journey
G4-10,G4-11G4-15,G4-16G4-EC1,G4-EN7G4-EN31,G4-LA6G4-LA9,G4-SO6
P5.1, P5.2 P92-P93
Outlook G4-2 A1 P94-P95
Appendix
Performance in Key Areas
G4-10,G4-11G4-56,G4-57G4-EC1,G4-EC7G4-EC8,G4-EN6G4-EN7,G4-EN19G4-EN21,G4-EN31G4-LA6,G4-LA12G4-HR2,G4-SO6G4-PR5
P5.2 P96-P97
Index G4-32 A3 P98-P99
Assessment of This Report G4-33 A2 P100
Readers' Feedback G4-31 A4 P101
ContentsUN Sustainable Development Goals(SDGs)
GRI Guide on Sustainable
Report(G4)
Guide 3.0 for the Petrochemical Industry on Compiling CSR Report by Chinese Enterprises
Page
Appendix2016 Social Responsibility Report
2016 Social Responsibility Report100 101
Assessment of This Report Readers’ Feedback
Dear readers,
Thank you for reading our 2016 CSR Report. We would highly appreciate your valuable feedback for the report.
Postal address: 22 Chaoyangmen North Street, Chaoyang District, Beijing, China China Petrochemical Corporation (100728)
Tel: +86(0)10 59960114Fax: +86(0)10 59969810
Your Information
Your Suggestions
Name: Contact number:
Organization: Email:
Scoring Completeness Logicality Readability Innovativeness
Overall Assessment
Energy supply: promoting sustainable development
Low carbon: building eco-system
Value creation: partnering for win-win
Social contribution: shared bene�t
CSR management: pursuing excellence and creating value
* On a 5 points basis, with 1 at the lower end and 5 at the upper end.
Your comments and suggestions to this CSR Report
Assessment on China Petrochemical Corporation 2016 Social Responsibility Report
Upon the request of Sinopec Group, the Expert Committee on Chinese Companies
CSR Report Rating selected experts to form a rating panel. The panel rated China
Petrochemical Corporation 2016 Social Responsibility Report (hereinafter “Report”)
as follows.
1. Rating Criteria
Compiling Guide for CSR Report by Chinese Enterprises (CASS-CSR 3.0)
Rating Standard for CSR Report by Chinese Enterprises (2014)
2. Rating Process
(1)The panel interviewed major members from the Report compiling team and
reviewed the related material during compiling period.
(2)The panel evaluated the compiling process and the information disclosed in the
Report and gave this assessment.
(3)This assessment should be signed jointly by the vice chairman of the expert
committee and the leader of the panel.
3. Rating Results
Process management( )
The communications department takes the leading role in setting up a report
compiling team, the director general of group social responsibility committee and
chairman are in charge of �nal review. The compiling team identi�ed stakeholders
and collected information by questionnaires, teleconference, interviews and
public open day. Substantial issues are defined according to company decisions,
government policies, industrial benchmark analysis and stakeholders’ survey. It is
planned to hold a launching event and release the report in Chinese and English
version, simpli�ed version, H5 version, video version as well as the CSR in 10 years
brochure. Thus, process management is super excellent.
Materiality( )
The Report systematically disclosed key issues on its industries such as implement the
macro policy, products quality control, energy supply guarantee, occupational health
management, safety production management, focusing on technological innovation,
clean energy R&D, circular economy, tackling climate change, environmental protection
etc. with detailed description. The report has super excellent materiality.
Completeness( )
87.5% of the core indicators in petrochemical industry were systematically disclosed
from the aspects of “Energy supply: promoting sustainable development”, “Low
carbon: building eco-system”, “Value creation: partnering for win-win”, “Social
contribution: shared bene�t”, “CSR management: pursuing excellence and creating
value”, presenting high level of completeness.
Balance( )
This report disclosed negative information on “number of cases of occupational
diseases diagnosed”, “number of accidents”, “number of deaths”, “death rate per 1000
employees” etc. The report is well balanced.
Comparability( )
This report disclosed data on more than 78 key performance indicators for at least
3 consecutive years, including “revenue”, “crudes throughput”, “safety training cost”,
“social donations”, “energy saving rate”, “carbon trading volume”, etc. Other data such
as “refining capability”, “number of gas station”, “lubricants customer satisfaction”
were in horizontal comparison. The report is of high comparability.
Readability( )
This report is themed on “responsibility creates value”, and described the content by
advancing “energy supply”, “environment protection”, “partnership responsibility”,
“charity” with clear framework and logic. Pictures, tables and other forms are used
to complement the writing”. Abundant cases are adopted to describe the social
responsibility practice, which make this report very readable.
Innovativeness( )
Each chapter of this report started with “sustainable development background and
our actions”, and ended in di�erent “features”. Key issues were integrated with the
UN sustainable development goals (SDGs) through the report. The compiling of
Sinopec CSR 13th Five-Year Plan will further strengthen corporate social responsibility
management and improve practice level. The report was published in Chinese and
English, both full and simpli�ed versions, H5 version, video version as well as The
CSR in 10 Years Brochure, improving communications e�ect. The report is excellent
in innovation.
Overall Rating( )
The panel agreed to rate China Petrochemical Corporation 2016 Social Responsibility
Report as super excellent and give a �ve-star rating.
4. Recommendations
More disclosure of negative data and weak points in CSR ful�llment is expected to
balance the report.
Panel
Leader: Cheng Duosheng, Director of Corporation Innovation Department of China
Enterprise Confederation
Members: Wei Xiuli, Associate professor of School of Economics and Management of
North China University of Technology
Wang Zhimin,Process Evaluators
Cheng Duosheng
Leader of the Panel
Date: 11 April 2017
Wei Zichuan
Vice Chairman of the
Expert Committee
100 Appendix2016 Social Responsibility Report
Responsibility Creates Value
2016 Social Responsibility Report
China Petrochemical CorporationAddress: 22 Chaoyangmen North Street, Chaoyang District, Beijing, China
Post code: 100728
Tel: +86 (0)10 5996 0114
Fax: +86 (0)10 59969810
Website: www.sinopecgroup.com