Addressing Climate
Change
Sinopec remains committed to its "Energy Efficiency Improvement" program and is steadily advancing eight major initiatives to support carbon peaking. The Company has prioritized reducing greenhouse gas emissions at the source, enhancing process controls, and strengthening end-of-pipe treatment. It has also actively promoted carbon dioxide capture and utilization, continuously improved fossil energy purification, accelerated the scale-up of clean energy, and driven low-carbon transformation across its production processes, ultimately contributing to achieving China's carbon peaking and carbon neutrality goals.
Energy Efficiency Improvement
Sinopec has continued to implement its "Energy Efficiency Improvement" program. In the oilfield segment, the focus has been on the integrated development of water injection, oil extraction, and transportation systems. In the refining and petrochemical segment, efforts centered on optimizing energy systems across entire plants and making better use of waste heat and cold energy. In the marketing segment, it has accelerated the rollout of PV power generation projects. Sinopec has also strengthened energy efficiency benchmarking by developing tailored indicators for each business segment and organizing compliance-based competitions among production units and technical professions. These initiatives encourage comparison, learning, and collaboration to drive better performance in energy conservation. In 2024, Sinopec completed 470 energy efficiency improvement projects, saving the equivalent of 790,000 metric tons of standard coal and reducing carbon emissions by approximately 2.05 million metric tons, achieving an energy saving rate of 5%. In August 2024, eight Sinopec subsidiaries were recognized as benchmark leaders in energy efficiency in the list of "2023 Energy Efficiency Leaders of Key Products in the Petroleum and Chemical Industry".
Greenhouse Gas Emission Management
Sinopec has established a set of internal policies, including the Sinopec Carbon Emissions Management Measures, the Sinopec Carbon Trading Management Measures, and the Guiding Opinions on Sinopec's Carbon Peaking and Carbon Neutrality Actions, and formed a Carbon Peaking and Carbon Neutrality Working Group overseeing strategy development and implementation of group-wide carbon peaking and carbon neutrality efforts, as well as coordinating group-wide initiatives in energy conservation and greenhouse gas emission control. Sinopec has also released the Sinopec 2030 Carbon Peaking Action Plan, which sets the goal of reaching peak carbon dioxide emissions by 2030. In parallel, it has launched Phase II of the Green Enterprise Action Plan, which sets 2028 as a milestone year, aiming to reduce carbon emission intensity by 5% compared to 2023 levels.
Product carbon footprint management
Sinopec has launched the Implementation Plan for Establishing Sinopec Product Carbon Footprint Management System (2024–2027), setting out 6 key tasks and 14 specific measures. These include developing carbon footprint accounting standards, building data systems, introducing product carbon labeling, managing supply chain emissions, conducting benchmarking and reduction initiatives, and positioning Sinopec as an industry leader. The plan targets carbon footprint accounting for 85 product categories. The Company has also completed digital carbon footprint management transformations at six pilot subsidiaries, including Shengli Oilfield and Zhenhai Refining & Chemical, and finalized carbon footprint accounting for 85 categories of petroleum and petrochemical products. In addition, Sinopec has submitted more than over 30 carbon footprint standards and co-initiated China's first industry alliance for carbon footprint management in the energy and chemical industry: the Energy and Chemical Industry Chain Carbon Footprint Alliance. This initiative aims to advance accurate carbon accounting and promote its widespread adoption across the industry chain.
Carbon asset management
Sinopec has built an integrated carbon asset management system covering emissions accounting, reduction efforts, carbon trading, and product carbon footprint management. It has organized carbon trading matchmaking sessions, released its 2024 carbon trading plan, and actively participated in the opening day of China's national voluntary greenhouse gas emission reduction trading market. It has also conducted carbon-inclusive trading in pilot carbon markets, lowered carbon quota settlement costs by purchasing green electricity and China Certified Emission Reduction (CCER) products. Furthermore, all subsidiaries engaged in carbon trading completed their quota settlements on time. In January 2024, Sinopec executed transactions on the launch day of the national voluntary greenhouse gas emission reduction trading market. In August, it introduced its first batch of dedicated carbon finance loan products to channel low-cost capitals into green industries and support the transition of key emission-control enterprises. This marks a pioneering use of carbon finance to advance the national carbon peaking and carbon neutrality goals.
Methane emission reduction
Sinopec has carried out research and application projects to develop methodologies for reducing methane emissions in oil and gas fields. Its oilfield subsidiaries have continued to improve the use of closed-loop mixed transportation systems, actively implemented casing gas recovery initiatives, comprehensively utilized flare gas, enhanced gas recovery from remote and scattered wells, and promoted the capture of vented natural gas.
In-depth Low-carbon Collaboration
Sinopec has continued to deepen mutually beneficial partnerships with businesses, universities, and research institutions to jointly promote the green and low-carbon transition, supporting China's carbon peaking and carbon neutrality goals and advancing global climate action. In September 2024, the Carbon-Neutral Ecological Partnership Program was inaugurated. This is a joint effort by Sinopec and Tsinghua University to explore new models of collaboration between universities and enterprises integration between industry and education, seeking to build a cross-disciplinary, cross-sector platform that brings together stakeholders from government, industry, academia, research institutions, end users, and beyond to contribute to carbon neutrality efforts.