社会责任
Letter from Chairman

Dear Friends,

On behalf of the Board of Sinopec Corp., I would like to express our heartfelt gratitude for your continuing attention and support!

Looking back in 2021, confronted with the severe challenges of the Covid-19 pandemic, climate change, energy security, etc., people around the world desired for green and low-carbon development more than ever. The Chinese government attached great importance to the implementation of the UN 2030 Agenda for Sustainable Development, succeeded in eliminating absolute poverty, made steady progress in transition towards green and low-carbon development, contributed to the global fight against the pandemic, and promoted the building of a community with a shared future for mankind. As a LEAD member of the United Nations Global Compact and a major player in the energy and chemical industries, Sinopec Corp. embraces green development transformation, takes "net zero" of carbon emissions as the ultimate goal and firmly devotes to a green, low-carbon, safe, responsible, and high-quality growth path to the sustainable development of our society. During the last year, we vigorously implemented our world-leading development strategy, actively integrated into the new development paradigm, and got good results in promoting high-quality development. We achieved the best performance in the past decade, further integrated our business development with ESG and made new progresses in key areas such as corporate governance, technological innovation, energy supply, green development,etc..

Focusing on compliance and efficiency, we continued to improve governance efficiency. We elected new members to the Board of Directors and the Board of Supervisors and made appointments to senior management, enhancing diversity on the board level and all independent directors fulfilled their duties with diligence. We optimized a number of corporate governance practices, promoted the construction of the compliance management system, and enhanced the effectiveness of the internal controls. We further strengthened the ESG governance and deepened the benchmarking programme of improving management, further enhancing the management efficiency. We constantly reinforced planning and coordination of the overall supervision to better serve supervisory duties, and strengthened communications with our stakeholders to maintain the Company's transparency.

Focusing on innovation-driven development, we achieved fruitful results. Aiming to become a technology leading company, we continued to deepen reform of our technology management mechanism, expedite the construction of new R&D institutions and tech incubators, and effectively stimulated the innovation vitality. We vigorously promoted research into core technologies in key areas such as exploration and development, new chemical materials, new energy, green and low-carbon development, etc., and made significant progresses in shale oil exploration and development, direct catalytic cracking of crude oil to ethylene, high-end carbon materials, medical materials, proton exchange membrane electrolysis hydrogen production technology, and accelerated the layout of such cuttingedge technologies such as fuel cells. Development and Industrial Application of Megaton-Scale Steam Cracking and Recovery Technology for Complex Feedstocks and other six technological projects won the State Science and Technology Award. In 2021, we were granted with a record high of 4,853 patents, ranking the top among China's large enterprises.

Focusing on sustainable and reliable energy supply, we endeavoured to build a diversified supply system. We intensified exploration and development of oil and gas, increased the reserves and production, and enhanced reserve capacity, providing a strong guarantee for the stable development of society and economy. We promoted the transition to low-carbon energy and actively coordinated the development of natural gas production, supply, storage, and marketing, yielding a continuous share increase of natural gas in the total production of oil and gas production. To enhance the green energy supply capacity, we increased the supply of natural gas and actively advanced the layout of the hydrogen industry, constructed eight hydrogen supply centres and accelerated the development of photovoltaic projects according to local conditions, and gradually promoted the supply of biomass energy. We are dedicated to transforming ourselves into an integrated energy service provider for oil, gas, hydrogen, electricity and non-fuel businesses and becoming a leader in clean energy supply to provide safer, cleaner, and more diverse energy for social development.

Focusing on green and low-carbon development, we endeavoured to build a clean and beautiful home. We actively promoted the green and clean development strategy and the Green Enterprise Campaign, deepened the pollution prevention and control and ozone pollution control action, and the emissions of major pollutants and the amount of industrial freshwater consumption continued to decline and the solid waste was disposed by 100%. We took wellordered steps to carry out actions for carbon peaking and carbon neutrality: actively implemented the "Energy Efficiency Improvement Plan" and enhanced the control of total energy consumption and energy intensity; built the million-tons CCUS demonstration project to further promote the emission reduction and utilisation of carbon; strengthened the management of methane emission control and jointly established the methane emission control alliance of Chinese oil and gas enterprises; and continuously improved the carbon asset management and enhanced the carbon absorption capacity of forest and grass.

Focusing on safe and healthy development, we improved intrinsic safety management. We comprehensively promoted the establishment of the HSE management system, published the HSE Management System Handbook, conducted the three-year safety rectification programme, accelerated the hidden danger treatment progress, and improved the capability of safety risk control. We further strengthened the safety qualification inspections of contractors to improve management, and enhanced operation safety management. We developed a special safety supervision mechanism, eliminated workplace safety hazards, and improved the deployment of safety equipment, improving the management of employees' health. We strictly continued the routine pandemic control measures, and effectively addressed the impact of catastrophic floods and typhoons. We maintained safe and stable operations throughout the year.

Focusing on serving the people for a better life, we fulfilled our social responsibilities as a corporate citizen. Adhering to the principle of putting the people first, we are committed to providing high-quality public products, closely combining our high-quality development with satisfying the people's needs for a better life, and fulfilling our responsibilities as a large enterprise. We expanded cooperation with our industrial chain partnerships to lead the high-quality industry development. We developed three distinctive brands of industrial support, education support, and marketing support to promote rural revitalization. We made efforts to fight against the pandemic, provided rescue and relief to disaster victims, and strengthened flood control and disaster relief, and promoted public welfare programmes such as Warm Stations Programme and Driver's Home Programme for Truck Drivers, bringing security and happiness to people. As an official partner of the Olympic and Paralympic Winter Games Beijing 2022, we provided comprehensive clean energy and executed the concept of Clean Energy for the Winter Olympics and Paralympics.

Looking ahead to 2022, Sinopec Corp. will fully and faithfully implement the new development philosophy, better integrate ESG into strategy and operation, and continuously improve our ESG management and performance. We will continue to integrate reform and development with corporate governance, energy supply with green development, and transformation and upgrading with technological innovation. Adhering to the principle of openness, sharing, and win-win cooperation, we will work together with stakeholders to explore leading ESG practices for sustainable development, and vowing to make new achievements in promoting sustainable economic and social development. We cherish your valuable suggestions for the Company's sustainable development, and look forward to joining hands with you to build a better life and create a brighter future!