Environment & Society

Climate Change

Attaching importance to climate change will help relieve bottleneck constraints on the current resources, accelerate fostering new economic growth, which will accelerate the transformation of economic development pattern and contribute to promoting the industrial transformation and upgrading. As an energy and materials provider, Sinopec Corp., on one hand, focuses on the development of major businesses and provides clean, high-quality and affordable energy and petrochemical products to promote social development and meet people’s living needs; on the other hand, it pays high attention to the climate-related risks and opportunities to the enterprise’s development.


Climate-related risks

Policy and legal

Consensus has been reached on combating climate change. Series International, national and regional laws and regulations enacted to limit GHG emissions, together with more stringent climate-related regulations that might be formulated in future, will affect global demands for fossil fuels. They may also increase corporate capital expenditure and affect future corporate profits and strategic growth opportunities.

China has made a set of commitments that are to be reached by 2030 at the latest: to achieve its peak CO2 emissions (and to make every possible effort to peak earlier), to lower CO2 emissions per unit of GDP by 60 to 65 percent from the level in 2005, and to increase the share of non-fossil fuels in primary energy consumption to around 20 percent.

China launched the national carbon emission trading system in 2017. The energy and chemical industry is expected to be gradually incorporated into the system.

Market and technology

Technology innovations that support the transition to a lower-carbon, energy-efficient economy system will increase the Sinopec Corp.’s R&D costs. People’s attention to climate change may lead to public choice of low-carbon products and services, thus affecting changes in consumer behavior.


Stakeholders pay more attention to ESG (environment, society and corporate governance) performance of Sinopec Corp. Our low-carbon transformation may fall out of stakeholders’ expectation which may impact our reputation.


Extreme weather events such as typhoons, hurricanes or floods caused by climate change may cause direct asset damage to our production and operation. The supply chain disruptions caused by climate change may also exert indirect impacts.


Meanwhile, actions to addressing climate change can foster Sinopec Corp. new growth drivers, help accelerate its energy low-carbon transformation and upgrading and promote high-quality development. Actively implementing Green and Low-carbon Development Strategy, Sinopec Corp. has continuously strengthened the integrated management of energy and environment by launching Green Enterprise Action and speeding up Energy Efficiency Improvement Plan, promoted clean production and strengthened carbon assets management to embrace the climate-related opportunities.


Improving energy efficiency

? Sinopec Corp. has implemented the Energy Efficiency Improvement Plan since 2014. As required in the Plan, the subsidiaries set the targets of energy efficiency improvement for the next year at the end of each year. The implementation progress of the Plan is reported monthly, the problems of subsidiaries are reported and discussed quarterly, and the annual assessment is conducted in accordance with Rules for the Implementation of Energy and Environmental Performance Assessment.

Energy low- carbon transformation

? We actively use low-carbon energy, promote coal-to-gas practice, and apply geothermal energy, solar power, residual heat and steam.

? All production and living facilities of SINOPEC Lubricant Marketing Company were powered by clean energy, using gas with coal zero consumption and zero purchase. SINOPEC Northwest Oil Field Company carried out oil-to-electricity operation.

? SINOPEC Jiangsu Oilfield Company promoted the application of “water-source heat pump + solar heating” and “air-source heat pump + auxiliary electric heating” to replace boilers. SINOPEC Zhongyuan Oilfield Company adopted geothermal heating.

? SINOPEC Hainan Marketing Company built distributed photovoltaic power stations on the roof of service stations to provide self-use electricity and upload surplus electricity to local grids.

? SINOPEC Pipeline Storage & Transportation Company reclaimed residual heat from surrounding thermal power plants and refineries. SINOPEC Zhenhai developed mutual cooperation on steam and low-temperature heat supply with surrounding enterprises.


Natural gas

In accordance with national strategic requirements of gas development, Sinopec Corp. formulates a strategic plan for effective and rapid development of natural gas, and builds an imported resources pool in long, medium and short terms that combines with spots and futures on the base of strengthening stability of domestic production. Moreover, we deploy infrastructure moderately in advance, accelerate the development of terminal business, and endeavor to build a production, supply, storage, and marketing system with optimised resource allocation, efficient operation of pipeline network, powerful guarantee gas supply and strong risk resistance, to achieve high-quality and sustainable development of natural gas sector.


GHG emission management

? Sinopec Corp. attaches great importance to GHG emission, sets emission reduction targets and measures, continuously carries out carbon capture and methane recovery, and promotes the development of alternative energy such as bio-aviation coal, biodiesel and photovoltaic power generation.

? In 2018, Sinopec Corp. emitted 172 million tons (CO2 equivalent) of GHG with an increase of 2.07 percent year-on-year. (Mainly due to the increased energy consumption incurred from the quality upgrading of refined oil and from the operation of new environment protection facilities; in addition, the relevant data of Shanghai Secco is included into the Company's statistics after it is acquired by the Company’s subsidiary.)


? Sinopec Corp. has set a goal of recycling more than 200 million cubic meters of methane annually by 2023, and has taken various measures to reduce methane emissions.

? For wells/stations far away from the oil gathering and transportation network, vehicle-mounted CNG or LNG facilities are used for recovery.

? Part of wells/stations adopts connecting pipes (or makeshift pipes) to enter the oil gathering and transportation network for recovery.

? Adopting technologies such as “testing during entrance” to recover natural gas during the testing process.

? Adopting oil and gas multiphase flow, oil jacket connecting unit or casing gas recovery unit, low-power gas generator and supercharger to recover casing gas.

? Adopting oil and gas airtight gathering and transporting process and large tank pumping unit to recover oil tank gas.


? The flaring system is the key facility to ensure safety. When certain emergency occurs in the production process, the gas materials need to be discharged into the flaring system for burning to ensure production safety and prevent subsequent accidents. However, flaring emissions will cause environmental pollution and energy waste.

? We strive to reduce the loss in petroleum processing and reduce environmental pollutions caused by flaring emissions. Adhering to the principle of safety foremost, reducing organised emissions or venting, and economic recovery and utilisation, we formulate rules of flaring emissions and recovery, include the operation management of flare system into the process and equipment management system, and establish the supervision and assessment system.

Developing alternative energy

We continue to implement residuel heat utilisation with the calorific value equals to 750,000 GJ per year, and deploy the distributed solar photovoltaic power generation projects generating 5.171 GWh of electricity annually, equivalent to saving 28,000 tonnes of standard coal per year and reducing 68,000 tonnes of CO2 emissions. SINOPEC Zhenhai started the construction of China’s first commercial production unit of 100,000-tonne bio-jet fuel, which will be completed and put into operation in 2019. Biodiesel R&D and production has been advanced and the pilot project was conducted to inject biodiesel B5 into vehicles in Shanghai transportation system and specialty vehicles. At the same time, we select renewable energy projects and promote the infrastructure construction of hydrogen production, purification and hydrogenation demonstration stations. Sinopec Corp. has set up demonstration stations for refueling and hydrogen charging in Guangdong province. In 2018, Sinopec Corp. joined the Hydrogen Council and signed strategic cooperation agreements with domestic enterprises to build hydrogen refueling demonstration stations for a green 2022 Winter Olympics.

Carbon capture

We conduct CO2 capture and reuse among E&P sector and refining & chemical sectors. Since we carried out CO2 capture and reuse, 2.45 million tonnes of CO2 have been captured accumulatively, and 3.44 million tonnes have been injected for EOR.

Carbon asset management

Sinopec Corp. carries out GHG emission reduction assessment. The KPI is composed of 2 indicators such as total carbon emissions, emission intensity and other 7 indicators including carbon accounting and carbon trading etc. We advance the carbon assets information system construction, and start the construction of carbon assets management information system in E&P, refining and chemicals sectors to enhance the statistical efficiency of CO2 emissions. The pilot subsidiaries participate in carbon trade and complete annual total carbon quota, which accumulates rich experience for Sinopec Corp. to participate in the national carbon trading market.


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