China Petroleum & Chemical Corp 6-K, filed Mar 30, 2021

China Petroleum & Chemical Corp (SNPMF)

6-K 2021-03-30 For: 2021-03-29

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Added on April 06, 2026

About this 6-K

China Petroleum & Chemical Corp filed this 6-K on March 30, 2021.

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Report Information			2
Letter from Chairman			5
Board’s Statement on ESG Governance			7
About Us			8
Recognitions and Awards			8
Topic 1: Concerted Efforts to Fight Against the Covid-19 pandemic			10
Topic 2: Achieving Poverty Eradication Goals with Unwavering Commitment			14
1.		Corporate Governance	18
	1.1	Development Strategy	18
	1.2	Board of Directors	19
	1.3	Business Integrity and Operation Compliance	21
	1.4	Risk Management	24
	1.5	Sustainability Management	24
	1.6	Technological Innovation	30
2.		Addressing Climate Change	33
	2.1	Management of Climate Actions	33
	2.2	Energy Saving and Emission Reduction	36
	2.3	Energy Transition	43
	2.4	Optimising Energy Structure	47
3.		Environmental Protection	48
	3.1	Environmental Management System	48
	3.2	The Green Enterprise Campaign	51
	3.3	Atmospheric Pollutants Control	53
	3.4	Solid Waste Management	54
	3.5	Water Resource Management	56
	3.6	Land Resource Management	58
	3.7	Preventing Leak and Spill of Hydrocarbons	58
	3.8	Biodiversity Protection	59
4.		Safety Management	61
	4.1	Safety Management System	61
	4.2	Workplace Safety	62

	4.3	Contractor Safety	63
	4.4	Logistics Safety	64
	4.5	Information Security	65
	4.6	Security	65
5.		Respecting Human Rights	67
	5.1	Respecting and Protecting Human Rights	67
	5.2	Employee Health	68
	5.3	Employee Training and Development	70
	5.4	Caring for Employees	71
6.		Contributing to Society	73
	6.1	Responsible Value Chain	73
	6.2	Community Engagement and Development	74
	6.3	Product and Service Management	75
	6.4	Contributing to Philanthropy	76
Key Performance			79
Environmental Performance			79
Social Performance			80
Independent Assurance Report			84
Report Content Indexes			89
HKEX ESG Reporting Guide Content Index			89
UNGC Ten Principles Index			92
TCFD Index			92
UNGC Advanced Level Criteria Index			93
Feedback			96

Exploration and Production	• Sinopec Corp.’s main oil and gas assets are located in China. Overseas, we only participate in four joint projects overseas, including Taihu in Russia, Block 18 in Angola, CIR in Kazakhstan, and Mansarovar in Colombia respectively, and there is not any other oil and gas assets overseas. • As of the end of 2020, our proved reserves of oil and gas totalled 1,542 mmbbls and 8,191 bcf respectively.
Refining	• Sinopec Corp.’s primary refining facilities are located in China. Overseas, we only invest in a refining joint venture project in Yanbu, Saudi Arabia. • In 2020, we processed 240 million tonnes of crude oil and produced 140 million tonnes of refined oil products.
Marketing and Distribution	• Sinopec Corp. has a comprehensive refined oil products distribution network consisting of 30,713 service stations, and sold a total of 220 million tonnes of refined fuel products in 2020.
Chemicals	• Sinopec Corp.’s primary chemical production facilities are located in China, producing synthetic resin, synthetic fibre, synthetic rubber and other petrochemical products. The only overseas projects include the Sibul project in Russia and the Amur project under construction. • In 2020, we produced 12.06 million tonnes of ethylene.
International Trade	• Sinopec Corp. is the largest trader of crude oil in China. • Sinopec Corp. engages in the international trade of crude oil, refined oil products and chemical products.
Technology R&D	• We have four State Key Laboratories, five National Engineering Research Centres, a National-Provincial Joint Engineering Research Centre, a National Engineering Lab, four National Energy R&D (Experiment) Centres, a National Testing and Evaluation Platform, and two State-Certified Enterprise Technology Centres.

marketing	eggs from Yingshang County, and mulberry stick fungus from Yuexi County. • Developed a product selection mechanism and a traceability mechanism to ensure both the quality and the authenticity of the poverty alleviation purpose of the products being marketed. • Allocated a dedicated display shelf for poverty alleviation products in 28,000 EasyJoy conveniences stores, providing the marketing access to reach consumers for products from poverty-stricken areas. • Promoted the sales of poverty alleviation products by giving the products access to our online and offline sales channels for poverty alleviation products, such as EasyJoy online store, Sinopec employee crowd purchase online store, and Shengda Super Market, and prioritising them for corporate procurement. • In 2020, the Company helped marketed RMB 480 million worth of products from poverty-stricken areas.
Poverty alleviation through education support	• Improved education facilities such as classrooms and dormitories in poverty-stricken areas. • Supported 1,560 students from low-income families with RMB 950,000 through the Sinopec Student Grant programme. • Organised Sinopec Summer/Winter Camps, Winter Olympics Camps and other activities for students from targeted poverty counties.
Poverty alleviation through promoting employment	• Launched special hiring sessions in targeted poverty counties during the pandemic and provided over 1,400 job opportunities. • Besides the special hiring sessions in targeted poverty counties though a third party, the Company also carried out recruiting events in eight targeted poverty alleviation counties. • Built poverty alleviation workshops in poverty-stricken areas to help create job opportunities for low-income population, especially women.

Disciplinary education	Launched the Anti-corruption and Integrity Education Month event with the theme of “Abiding by Laws, Strengthening Disciplines and Promoting Development”, organising employees to study laws and regulations and relevant company policies.
Cautionary education	Organised group-wide cautionary sessions, and circulated typical corruption and violation cases for caution, reminding employees to abide by the red line.
Integrity culture programmes	Organised online education sessions for employees, and hosted relevant lectures to foster an integrity culture and self-discipline awareness among employees.


Promoting quinoa growing in Dongxiang County	Photovoltaic power generation project in Dongxiang County
Sinopec volunteers helping with rice harvest Breaking infrastructure bottlenecks Water shortage is the primary problem in Dongshan County. We spent over RMB 67 million to lay water pipelines, build and renovate reservoirs, install household tap water, build a water quality inspection centre, and develop a tap water intelligent management system, to bring safe and convenient tap water to the homes of villagers in the Bulengou Valley. Besides household tap water, we invested another RMB 100 million to upgrade village roads, replacing the old dirt roads, which were “dusty when sunny and muddy when rainy”, with concrete ones. We also supported 56 villagers in Bulengou Village to build houses, and supported housing renovation projects that benefited 1,335 households, including virtually all the registered low-income households in the Bulengou Valley. Developing specialty produce and industries In order to accelerate the pace to eradicate poverty, we established a quinoa pilot farm in 2018 with the cooperation of Gansu Academy of Agricultural Sciences. In 2020, there were over 670 hectares of quinoa growing in Dongxiang County, generating higher incomes for 2,149 farming households and over1,600 lowincome villagers working on related businesses. We helped build processing workshops, promoted the “Dongxiang Quinoa” brand, and developed a “field to fork” full industrial chain poverty alleviation model including growing, harvesting, procurement, processing, packaging and sales. We also supported the Bulengou Village Chicken Cooperative, building warm coop and encouraging chicken farmers to have confidence; worked together with the China Foundation for Poverty Alleviation to support homestay tourism in Maxiang Village, Tangwang Township; and established Gansu Agricultural and Animal Husbandry Product Sales Centre and the Yangtze River Delta and Pearl River Delta markets, leveraging our extensive marketing platform to bring over 230 local agricultural products to the nationwide market. Fostering knowledge and skills Among the population of 300,000 in Dongxiang County, ethnic minorities account for a relatively high proportion,

Indicators	2018	2019	2020
Number of employees participated in anti-corruption trainings (10,000 person-times)	114.3	123.8	105.2
Coverage rate of anti-corruption trainings (%)	100%	100%	100%
Number of CPC integrity and anti-corruption trainings organised (10,000 times)	1.5	1.7	1.3

Stakeholders	Key Communication Topics	Communication Channels
Government and Regulators	• Business ethics and anti-corruption • Risk management and operation compliance • Invest in new energy • Respond to climate change • Ensure energy security • Taxation & job creation	• Daily communication and reporting • Discussion and seminar • Project approval • Government supervision and regulation

	• Research and innovation
Shareholders	• Business performance • Research and innovation • Respond to climate change • Promote energy transition • Risk management and operation compliance	• Information disclosure required by law • Performance release and meeting • Teleconference and online interaction • Investor hotline • Investor visit • Capital market conference
Customers	• Improve quality of products and services • Accelerate smart transformation • Invest in new energy • Ensure energy security	• Daily service communication • Customer visits • Questionnaire survey • Website, WeChat and other online media
Employees	• Workplace health and safety • Training and career development • Diversity and equal opportunity • Respect human rights	• Employees’ representative meeting • Annual commendation • Regular trainings • Corporate cultural activities • Website, WeChat and other online media
Communities	• Community engagement and development • Taxation and job creation • Responsible supply chain • Support eradication of poverty • Respond to climate change • Pollution and emission management • Invest in new energy • Resource recycling and reuse • Biodiversity and land use • Water resource management	• Corporate philanthropy • On-site research • Community communication activities • Media communication • Project environmental and social risk assessment • Environmental performance monitoring and disclosure • Respond to external investigation

	We reviewed our development strategy and plans and identified 22 issues of significance both to the Company and its stakeholders.
Evaluation	We invited both key stakeholders, such as investors and sustainability experts, and employee representatives, to evaluate the identified issues from their perspectives, and constructed a two-dimensional mapping of the issues based on their significance.
Screening	Based on the materiality matrix constructed, we ranked the material issues based on their significance, and selected the issues with high significance for focused disclosure in this report.

Issue hierarchy	No.	Material issue	Indicator aspect
Core	1	Risk management and operation compliance	-
	2	Invest in new energy	A4 Climate change
	3	Respond to climate change	A4 Climate change
	4	Research and innovation	-
	5	Occupational health and safety	B2 Health and Safety
	6	Pollution and emissions control	A1 emissions, A3 environment and natural resources
	7	Improve corporate governance	-
	8	Business ethics and anti-corruption	B7 Anti-corruption
	9	Improve the quality of products and services	B6 Product Responsibility

	10	Accelerate intelligent transformation	-
	11	Respect human rights	B1 employment, B4 labour standards
	12	Promote energy transition	A4 Climate change
Important	13	Ensure energy supply	-
	14	Resource recycling and reuse	A2 Resource use
	15	Support eradication of poverty	B8 Community investment
	16	Employee training and career development	B3 Development and training
	17	Biodiversity and land use	A3 The Environment and Natural Resources
	18	Water resource management	A2 Resource use
	19	Responsible supply chain	B5 Supply Chain Management
	20	Community communication and development	B8 Community Investment
Regular	21	Taxation & job creation	B8 Community Investment
Regular	22	Diversity and equal opportunity	B1 Employment

SDGs	Sinopec Corp. Actions
1 NO POVERTY	We vigorously supported targeted poverty alleviation by dispatching 1,945 designated poverty alleviation volunteers and providing RMB141 million in poverty alleviation financial support. All of our eight designated poverty alleviation counties were lifted out of poverty.
2 ZERO HUNGER	We supported the development of specialty agriculture in poverty-stricken areas. Over 10,000 mu of quinoa were grown in Dongxiang County, Gansu Province, which generated higher income for 2,149 farming households, including over 1,600 low-income households.
3 GOOD HEALTH AND WELL-BEING	We protected the health and safety of our employees, and there was no occurrence of clustering Covid-19 infection within the Company during the pandemic. We provide all employees with occupational disease screenings, and established the Sinopec mental health (EAP) committee to promote the physical and mental health of our employees. We adjusted and increased our capacities to supply materials for medical supplies to provide material support for the fight against the pandemic and better protect the health of our customers and the public.
4 QUALITY EDUCATION	We provided a variety of trainings for our employees, totalling 1,259,000 person-times in 2020, and maintained a 100% vocational training coverage rate. We donated RMB 89.63 million to upgrade educational facilities in our targeted poverty areas. Our Sinopec Scholarship programme provided financial aid to a total of 1,560 students from low-income families.
5 GENDER EQUALITY	We uphold gender equality and has established the Female Employees Committee to protect the rights of female employees. We strive to eliminate gender discrimination in recruiting and promotion, and encourage female employees to participate in democratic management of the enterprise. We pay attention to the needs of female employees during pregnancy and maternity, as well as the physical and mental health of female employees.

6 CLEAN WATER AND SANITATION	We set annual water consumption targets and committed to reducing our annual industrial fresh water withdrawal by 1% or greater year-on-year. To achieve this, we optimised water sourcing strategy to replace the use of fresh water with unconventional water resources. We invested over RMB 67 million to upgrade water facilities in Dongxiang County to bring tap water to villages in Dongxiang County, Gansu Province.
7 AFFORDABLE AND CLEAN ENERGY	We actively invested in new energy businesses to increase the share of natural gas and other clean energy in our energy supplies, with natural gas accounting 41% of oil and gas production in 2020. The total production capacity of our high purity hydrogen generation unit reached 9,000 kg per day, and our bio-jet fuel capacity reached 100,000 tonnes per year.
8 DECENT WORK AND ECONOMIC GROWTH	We strive to support local economic development through investing, paying taxes, creating jobs and increasing localised procurement. In 2020, we generated over 1,400 job opportunities for migrant workers and new recruits from previous employment history. We also actively recruited female employees, overseas employees and minority employees to ensure equal employment opportunities.
9 INDUSTRY, INNOVATION AND INFRASTRUCTURE	We invested RMB 15.2 billion in R&D and obtained 4,254 patents both at home and abroad in 2020. We have built six intelligent factories, and piloted digitalised and contact-free intelligent gas stations in nearly 20,000 Sinopec service stations.
10 REDUCED INEQUALITIES	We strictly forbid the use of child labour and forced labour, and forbid any form of discrimination such as due to gender, region, religion and nationality. We strive to further increase the diversity at our workplace, such as in gender and ethnicity, and fully ensure equal opportunities for employees.
11 SUSTAINABLE CITIES AND COMMUNITIES	We actively cooperate with the development of the new energy vehicle industry and accelerated the construction of new energy vehicle charging and swapping facilities and hydrogen refuelling stations. We invested RMB 100 million to build village roads in Dongshan County, Gansu Province.
12 RESPONSIBLE PRODUCTION AND CONSUMPTION	We kept optimising HSSE management to ensure workplace safety, occupational health and environmental compliance. There was no occurrence of major safety accident or environmental emergency in 2020. We worked together with our suppliers to promoted green procurement and responsible procurement, and disclosed our sustainability performance in our annual sustainability report to improve transparency.
13 CLIMATE ACTION	We kicked-off the research on the strategic path towards carbon peak and carbon neutral in order to formulate our low-carbon development strategy and roadmap. We carried out the “near zero emission” pilot projects, developed and promoted carbon emission reduction technologies, and strengthened the monitoring and management of greenhouse gas emissions. We strive to reduce our carbon footprint and contribute to the national carbon neutral goal through a variety of approaches, such as carbon capture, utilisation and storage (CCUS) and forestry carbon sinks and other carbon removal technologies.
14 LIFE BELOW WATER	We conducted site visits to enterprises along the Yangtze River, the Yellow River and other key river basins to protect the environment of the river systems. We maintained our membership in the Alliance to End Plastic Waste (AEPW) to protect the marine environment and marine life. We took meticulous measures to prevent oil spill accidents at sea, recycle and reuse more wastewater, and fully comply with all compliance criteria for affluents.
15 LIFE ON LAND	We required all new and under-construction projects to pass environmental impact assessment

	first, identify the eco-environmental sensitivity of projects to avoid eco-sensitive areas. We also conducted ecological environmental environment assessment for decommissioned facilities, and carried out ecological restoration work if needed.
16 PEACE, JUSTICE AND STRONG INSTITUTIONS	We continued improving compliance management to ensure business integrity, and implemented a “zero tolerance” policy for corruption and violations of business ethics to eradicate all forms of corruption. We also urged our suppliers and contractors to strengthen their safety management and environmental protection efforts.
17 PARTNERSHIPS FOR THE GOALS	We continuously supported UN Global Compact and other global initiatives; actively participated in international organisations and trade associations, and promoted research collaboration. We also continued investing in e-commerce platforms such as EPEC and Sinopec Chememall to achieve win-win development of the industrial chain.

Triple Successes in the Field of Biodegradable Materials material Sinopec Corp. vigorously explored solutions to solve the “white pollution” problem, and became the first Chinese company to join the Alliance to End Plastic Waste (AEPW). The Company intensified its research in the field of biodegradable materials. After independently developed the material preparation technology for PBAT and PBST, the Company successfully realised the industrial production of PBSA biodegradable plastic in October 2020. Terms and Tips: • PBST and PBAT are copolymerised thermoplastic biodegradable plastics processed on the basis of PBT (polybutylene terephthalate, one of the five major engineering plastics). They are widely used in making plastic film, shopping bags, garbage bags, etc. Other than biodegradable, they can also be disposed by composting. • Compared with PBST and PBAT, PBSA (polybutylene succinate adipate) has lower melting point, faster crystallisation and higher fluidity. It can be used in 3D printing and as materials for making medical supplies and film and bags.

Yizheng Chemical Fibre started production of new biodegradable plastic PBSA PBSA, a new biodegradable plastic material

Target	Progresses in 2020
Intelligent plant Target: By 2025, develop an upgraded version of the intelligent plant, and implement it in over 10 refining and chemical subsidiaries.	• Completed the construction of six intelligent plants, realising integrated optimisation, fine-managed production, and intelligent management through digital transformation.
Intelligent oil and gas fields Target: By 2025, develop upgraded versions of intelligent oil and gas fields, and implement them in six oil and gas field subsidiaries.	• Completed the pilot upgrade project of intelligent oil and gas field in Sinopec Northwest Oil Field Company. • Initiated the implementation of intelligent oil and gas field in three locations, including Sinopec Northwest, Shengli Offshore and Jianghan Fuling, and completed the implementation of seven major applications, such as dynamic management of oil and gas reserves, single well management, etc. • Launched pilot programmes in areas such as safety and environmental protection, and shale gas production, further improving the efficiency and profitability of exploration and development operations.
Intelligent service stations Target: Develop multiple intelligent application scenarios focusing on the ecosystem of “people, vehicles and life”, support integrated and cross-functional development.	• Offered station-level integrated system with core functions at close to 20,000 service stations, and launched mobile Apps such as EasyJoy Refuelling, Sinopec Wallet, aiming at exploring touch-free consumption scenarios and improving customer experience. • Realised automatic license plate recognition and digital marketing through technologies such as big data and artificial intelligence, further promotes the development of a diversified business ecosystem.

2014.6	Launched the Energy Efficiency Improvement Plan
2018.4	Launched the Green Enterprise Campaign
2020.11	Initiated the research on strategy of peaking carbon emissions and achieving carbon neutrality
2021.1	Signed the Declaration of Achieving Peak Carbon Emissions and Carbon Neutrality of China Petroleum and Chemical Industry
2021.3	Proposed to peak carbon dioxide emissions before the national carbon peaking target and to achieve carbon neutrality by 2050.

Board of Directors	Strategy Committee, Audit Committee and CSR Management Committee	Reviewing climate change related development plans, policies and reports, and making recommendations to the Board; identifying, assessing and managing important investment and operation issues related to climate change, establishing an appropriate and effective climate risk management system; Reviewing and supervising development plans for natural gas and renewable energy, and the development of the Company’s energy structure.
Management level	Sinopec Carbon Emission Peaking and Carbon Neutrality Task Force	Conducting research on peaking carbon emissions and achieving carbon neutrality strategic path, and formulating Sinopec’s carbon peaking and carbon neutrality strategy, targets, roadmaps and implementation measures.

	Comprehensive Risk Management Implementation Leading Group	Identifying risks and opportunities related to climate change and relevant countermeasures under the comprehensive risk management system, and reporting to the Board or the Audit Committee.
Implementation level	Headquarters departments and subsidiaries	Implementing the Company’s carbon peaking and carbon neutrality strategies, formulating department/enterprise level carbon peak and carbon neutrality targets and action plans to continuously reduce CO₂ emissions.

Climate-related Risks and Impacts
Physical risks	Acute risk • Increasing frequency of extreme weather events such as hurricanes and floods may cause the Company’s production capacity to decline due to production shutdowns, transportation difficulties, and supply chain interruptions, and reduce the Company’s profitability. • Sudden natural disasters are prone to trigger secondary production accidents, causing major economic losses to the Company and heavy human casualties.
	Chronic risk • Changes in rainfall and extreme fluctuations in weather patterns may cause the Company’s construction costs to increase (such as due to extended construction period, damaged equipment, etc.); insurance costs for equipment and personnel may increase.

	• An increase or decrease in the average temperature may increase the Company’s operating costs, such as an increase in equipment cooling water demand, and an increase in office cooling and heating requirements.
Transition risks	Policy and legal risk • The Chinese government has announced to peak carbon emission by 2030 and achieve carbon neutrality by 2060. Regulators will adopt more stringent measures to limit greenhouse gas emissions, which may reduce the demand for fossil fuels. • China will implement a quota system for carbon emissions. Most of the Company’s subsidiaries are expected to be included as key emission units in the national carbon emission trading market, which may increase the Company’s carbon emission costs for compliance. • Restrictions on the access of high-energy-consuming and high-carbon-intensity products may cause some products or equipment to be gradually phased out.
	Technology risk • Technological innovation during the transition to a low-carbon and energy-saving economy will increase the Company’s R&D costs, as well as the investment in clean energy, new energy and emission reduction technologies.
	Market risk • Consumers’ concern about climate change and sustainability may persuade them to prefer low-carbon products, thereby reducing the demand for traditional energy products with high carbon emission intensity.
	Reputation risk • Stakeholders pay greater attention to the Company’s climate strategy and energy transition, which may result in a negative impact on the Company’s image if they fail to meet the stakeholders’ expectations.

Management Measures	Formulated the Sinopec Carbon Emission Management Measures to specify carbon emission statistics, emission reduction, trading and other procedures, and carried out annual audits and internal inspections of the carbon emission data of subsidiaries to fully understand the specific carbon emissions situation of the Company.
Management Standards	In accordance with domestic and international greenhouse gas emission accounting standards, including ISO14064-1: 2006 standards, China Oil and Gas Production Enterprises Greenhouse Gas Emission Accounting Methods and Reporting Guidelines, and China Petrochemical Enterprise Greenhouse Gas Emission Accounting Methods and Reporting Guidelines.
Management Scope	Direct greenhouse gas emissions (Scope 1) and indirect (energy) greenhouse gas emissions (Scope 2) have already been included in the scope of the audit process. The Company has not included the identification, audit and verification of emission sources of other indirect (value chain) greenhouse gas emissions (Scope 3), but has established a product carbon footprint calculation and evaluation method to calculate the carbon footprint of four oil products, including jet fuel, lubricant base oil, polypropylene, and PX.
Management system	Established and launched a carbon asset management information system, and optimised its accounting modules during the year to improve the efficiency of data collection; completed the group-wide carbon audit and carbon verification of all devices, laying a solid foundation for formulating emission control measures.

Technological R&D	Researched on carbon dioxide capture technology, accelerated the experimental research and application of new CO₂ capture technologies such as membrane absorption, membrane separation, ionic liquids and other methods, as well as CO₂ capture and transportation processes, to develop carbon capture technologies.
Oil fields	Continued to carry out CO₂ flooding projects, injecting CO₂ into oil reservoirs to improve oil recovery rate and realise CO₂ storage at the same time. In 2020, our oil field subsidiaries injected 298 thousand tonnes of CO₂ for oil displacement, reaching a cumulative total of 3.97 million tonnes of CO₂ injected underground for flooding.

Business Segment	Methane Emissions Control Measures
Exploration and development	• Expanded the scope of vented natural gas recovery, improved low-pressure natural gas management, and used low-pressure condensing systems to recover vent air to reduce natural gas escape. • Fully adopted airtight mixed transportation technology, and intensified the management of leakage. • Required inspection, maintenance and equipment commissioning to be scheduled in advance to minimise the amount of natural gas vented during the operation. • Recovered 600 million cubic metres of methane in oilfield subsidiaries, which was equivalent to reducing greenhouse gas emissions by about 9 million tonnes carbon dioxide equivalent.
Refining and chemicals	• Paid greater attention to the smooth operation of equipment to reduce abnormal fluctuations and unscheduled shutdowns, so as to avoid venting the torch under emergency shutdown; and conducted leak detection and maintenance of the vent valves of the

Enterprise greening	• 116.474 million square metres of green area in total, among which • 1.829 million square metres of green area was newly built or renovated during the year • Green area rate (excluding areas under construction) reached 27.7% • Green coverage rate reached 30.6%
Voluntary tree planting	• 1.703 million trees planted during the year, an increase of 243,000 trees over 2019 • 17,000 tonnes of carbon dioxide equivalent can be sequestered estimated by the number of trees planted

Measures to Improve Energy Efficiency
Setting energy efficiency goals	Strictly implemented the requirements on controlling both total energy consumption and energy intensity, signed annual energy and environmental responsibility commitment with business units and subsidiaries, strengthened process inspection and early warning, carried out quarterly reviews and year-end assessment to ensure that the annual energy efficiency goals were met.
Energy efficiency management	Established energy management systems at key energy-consuming subsidiaries, promoted energy management informatisation, and established overall energy management solutions in refining and chemical subsidiaries; carried out energy efficiency benchmarking to ensure continuous improvement of energy efficiency.
Energy efficiency audit and supervision	Carried out energy audit and energy saving supervision to improve energy conservation management at the subsidiary level; strengthened the post-evaluation of energy conservation performance of fixed asset investment projects, and urged subsidiaries to manage energy consumption from the source.
Energy-saving technology application	Organised business segments to develop showcases of mature and applicable energy-saving technologies, and accelerated the R&D on new energy-saving technologies, new catalysts and new equipment to provide technical support for energy efficiency improvement.

Indicators	2020	2025
Demand for primary energy (100 million tons of standard coal)	49.39	53.78
Percentage of fossil energy (%)	84.3	81.2
Percentage of coal (%)	56.7	51.3

Indicator	2018	2019	2020	2021 Target
Natural gas production (BCM)	27.678	29.673	30.369	34.100
Proportion of domestic natural gas to oil and gas equivalent (%)	39	41	41	44

Bio-jet fuel	Developed capacity for bio-jet fuel production, which uses renewable resources such as kitchen waste grease, animal grease and vegetable oils to produce bio-jet fuel, with a production capacity of 100,000 tonnes per year.
Biodiesel	Continued to expand the supply of biodiesel in Shanghai, increased the blending capacity of B5 biodiesel to over 400,000 tonnes per year, and the fuel was provided to over 240 service stations in Shanghai.
Ethanol gasoline	Sold 14.75 million tons of ethanol gasoline in 2020.

Upstream segment	Promoted the transition from diesel fuel to electricity and natural gas, promoted the utilisation of new energy such as geothermal, solar, and wind energy to replace coal, fuel oil or gas boilers for heating supplies, built distributed power supply systems, and promoted the clean transition of the energy structure.
Refining and chemical segments	Promoted the utilisation of waste heat in steam and power generation for heating to improve energy utilisation; Implemented cross-supply of steam and power to achieve complementary and shared thermal power resources; and used vacant space to develop distributed photovoltaic power generation.
Marketing segment	Implemented the Thousand Stations with Solar Energy project and had built 205 distributed photovoltaic power generation pilot projects in service stations with a total installed capacity of 8.88 MW, which is equivalent to reducing carbon emissions by about 12,000 tonnes of carbon dioxide equivalent.

Site selection	• Carried out project feasibility study and environmental impact assessment, evaluated the impact of project construction and operation on the ecological environment, proposed and implemented corresponding ecological environmental protection measures in the construction and operation process.
Construction	• Carried out ecological environment survey and assessment before entering new production areas, identified ecological environment sensitive targets, and avoided ecologically sensitive areas. • Strictly implemented the requirements of environmental assessment and design documents, adopted green construction plans, and gave priority to the use of production and construction techniques and technical measures with less emissions and using less land to reduce the impact of project construction on the ecological environment.
Environmental monitoring	• Both the Company and its subsidiaries have submitted their implementation reports on the national pollution discharge permit management platform, which could be publicly

	accessed after being reviewed by local environmental protection authorities. • The key pollutant discharge units were required to install online monitoring device, data collected were transmit to the national and local monitoring platforms in real-time and used for supporting the supervision by relevant authorities.
Clean production	• Formulated the Notice on the In-Depth Implementation of the Clean Production Audit Work in Key Industries, and regularly optimised the mechanism, promote emissions reductions throughout the entire process, and supervise subsidiaries to continuously reduce pollutant emissions.
Emergency response	• Formulated the Guidelines for the Preparation of Emergency Plans for Emergent Environmental Incidents and Guiding Opinions on the Provision of Emergency Supplies for Emergent Environmental Incidents to ensure that effective treatment measures would be taken when an incident occurs, so as to reduce pollution loss and mitigate the ecological damage.
Project withdrawal	• Established the investigation and evaluation mechanism regarding the current ecological environmental conditions, and carried out ecological rectification and restoration based on the findings of the investigation and evaluation.

Our Commitment	Progress in 2020
Fuel products that meet the National VI emission standards	Completed the oil quality upgrade to meet the National VI emission standards ahead of schedule in key cities in July 2017; Started supplying National VI standard gasoline and diesel products for motor vehicles nationwide on January 1, 2019.
Low-sulphur fuel oil (LSFO)	In compliance with the new International Maritime Organisation (IMO) Low Sulphur Regulation and requirements of China’s maritime authority on low sulphur fuel oil, the Company produced 4.54 million tonnes of LSFO and dominated the domestic market as the largest LSFO supplier in China.
Green chemical products	Developed environmentally friendly, low-carbon and high-performance chemical products; launched new innovative epoxy resin products, which are non-toxic, waterproof and corrosion-resistant, VOCs-free during its production process, and can be used in a variety of applications;

Policies and standards	Continued to implement the Three-year Implementation Plan for Pollution Prevention and Control of the Sinopec Green Enterprise Campaign; Formulated the Sinopec 2020 VOCs Governance Plan and the Special Action Plan for Ozone Pollution Prevention and Control in 2020, putting forward emission standards for VOCs and NO_X that are more stringent than the national and regional standards.
Emission permit	The main atmosphere pollutants produced by the Company include SO₂, VOCs and NO_X. All Sinopec subsidiaries have applied and been granted the necessary emission permits before the required deadline, and managed the concentration and total amount their atmosphere pollutants emissions in strict accordance with the permits.
Source control	Implemented integrated management of energy conservation and environmental protection, reducing atmosphere pollutants emissions by optimising energy structure, using clean fuels and raw (auxiliary) materials and adopting clean production technologies and advanced treatment technologies.
Environmental	Installed online environmental monitoring device in accordance with government