2016 - sinopecgroup.com · &WFSZ ESPQ PG 0JM JT B QSPNJTF China Petrochemcial Corporation Address: 22 Chaoyangmen North Street, Chaoyang District, Beijing, China Post code: 100728

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


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


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.


Social Responsibility ReportChina Petrochemcial Corporation

Official Weibo Official Wechat


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



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.


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


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


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.


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


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



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


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




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


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



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


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


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


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


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.


revenue reach to 250 million yuan, up by 37%. The number of stations with insurance service had amounted to 5,160.



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.


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.


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


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


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


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


Affordable and Clean Energy

Climate Action

Life on Land

Life Below Water

SDGs

Intensified Environmental Stewardship


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



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




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.



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



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


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


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


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





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


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



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.


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.


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


logo

CO-BRANDED

62 63Value Creation • Partnering for Win-Win2016 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

Email



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



Index 2014 2015 2016

Rate of contractors with ISO9001 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.


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


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


SDGs

Sustainable Cites and Communities

Peace, Justice and Strong Institutions

82

Tax Contribution


Public Welfare

Social Contribution

76767780

Feature

The Gas Station That Cares

A Better Road Home

Shared Benefit

Social Contribution


Tax Contribution


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

%


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.


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


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


92

CSR Model

CSR Management

CSR Communication

868790

Feature

Fulfilling CSR in 10 Years,

Embracing New Journey

Pursuing Excellence and Creating Value

CSR Management


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


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


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)


Ful�lling CSR in 10 Years, Embracing New Journey


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


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.



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


Appendix

Appendix


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


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


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



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

Documents

2016 - sinopecgroup.com · &WFSZ ESPQ PG 0JM JT B QSPNJTF China Petrochemcial Corporation Address: 22 Chaoyangmen North Street, Chaoyang District, Beijing, China Post code: 100728