Sinopec Engineering Group Co Ltd. - Environmental & Social Information 2022

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��o�t ��i� Report

This Report is the ninth environmental, social and governance �� report ��the Report�� of ��P�C �ngineering ��roup� Co., �td. ��the Company� and �� since going public. This report introduces our sustainability philosophy and policies and our environmental protection, social responsibility and corporate governance �hereinafter referred to as �� performances in 2021, and highlights on how we responded to the expectations and concerns of sta�eholders.

Reportin� S��ect� ��P�C �ngineering ��roup� Co., �td.together with its subsidiaries and branches �the ��roup�, �we� or �us��.

Reportin� �eriod� From 1 �anuary 2021 to 31 December 2021 ��Reporting Period��, with some information and figures tracing bac� to earlier years beyond the stated Reporting Period in order to enhance the comparability and continuity of this Report.

��lication ��cle� This Report is published as the annual �� report for the year of 2021.

�ontent Scope� This Report covers the important matters and performance of the �roup in the environmental, social and governance aspects during the Reporting Period.

So�rce� o� �n�ormation� The informarion of this Report herein comes from internal data, materials from our subsidiaries, and relevant public information. �ome of the operational and �nancial data of this Report are cited from the �roup�s 2021 Annual Report. �n the event of any discrepancy in data between this Report and the 2021 Annual Report, the information in the 2021 Annual Report shall prevail. �nless otherwise speci�ed, the amount disclosed in this Report is denominated in RMB.

�ompilation G�ideline�� This Report is compiled based on the �nvironmental, �ocial and �overnance Reporting �uide of the �toc� �xchange of �ong �ong �imited �the ��x��. �t also refers to the �uidelines to the �tate-owned �nterprises on Ful�lling Corporate �ocial Responsibilities issued by �tate-owned Assets �upervision and Administration Commission of the �tate Council of PRC, the �R� �ustainability Reporting �tandards issued by �lobal Reporting �nitiative ��R��, and the �uidelines on Corporate �ocial Responsibility Reporting in China �CA��-C�R �.0� of Chinese Academy of �ocial �ciences. With respect to the section of addressing climate change, please refer to the advice of the Tas� Force on Climate-related Financial Disclosure.

�cce�� to t�e Report� This Report is released in both printed and online versions. The online version is available for downloading at the website of ��x at www.h�exnews.h� and the website of ��P�C �ngineering ��roup� Co., �td. at www.segroup.cn.

�i�claimer� This Report includes certain forward-loo�ing statements. �ther than the historical facts, all events which may or will happen in the future and their description �including but not limited to, preconditions, goals, estimates and commercial plans� are included in the forward-loo�ing statements. Due to the in�uence of external changing factors, the factual development result or trend in the future may be di�erent from such statements. The forward-loo�ing statements of this Report were made in April 2022. �nless otherwise re�uired by the regulatory authorities, ��P�C �ngineering ��roup� Co., �td. underta�es no obligation or responsibility to update these forward-loo�ing statements.

This Report is prepared in both Chinese and �nglish. �n case of any discrepancy between the two versions, the Chinese version shall prevail.

��E��S

02 Letter from Chairwoman
04 Board of Directors' Statement on ESG Governance

06 About Us

08 Topic 1: Pool Forces and Drive Green Development through Innovation
11 Topic 2: Do a Good Job in COVID-19 Pandemic Prevention and Control
13 Topic 3: System Construction Helps Improve the Company's Management Efficiency

�� ana�ement

16 Development �trategies

18 Corporate �overnance

23 Compliance �peration

25 Ris� Management

26 �ustainability Management

30 Environment

32 Advanced Technology-led
3� �trict �nvironmental Management
35 Dedicate Clean �nergy
36 �reen �nterprise �nitiative
37 Practices Related to �nergy Conservation and �mission Reduction

�8 Societ�

50 Care for �mployees� �rowth
63 �table and �afe �peration
68 Partner with Responsible Partners
72 �mprove Product �ervices
77 Adhere to �nnovation-based Development
80 �erve the Communities Wholeheartedly
82 Appendix
82 Paraphrasing

83 �ey Performance

87 �n �upport of �D�s
89 ��-�R� �ndex
92 TCFD Framewor� Content �ndex
93 Reader�s Feedbac� Form
�5 Bio-diversity Protection
�6 Address Climate Change

Letter from Chairwoman

First of all, on behalf of the Board of Directors of Sinopec Engineering (Group) Co., Ltd., I would like to express my heartfelt appreciation to all shareholders and stakeholders for your interest and support for the Group!

The past year was a year when China's "Two Centenary Goals" converged historically, and it was also a year when many of our business indicators reached record highs and pushed high-quality development to a new level. We responded calmly to the challenges brought by the changes in the energy and chemical industry, actively implemented the development strategy of "Value-Oriented, Innovation-Driven, Green and Clean, Talent-Based, Globalization-Targeted, Integration and Symbiosis ", focused on "engineering innovation and value creation", and made a solid step towards the goals of higher quality, more benefits and more sustainable development. In 2021, a number of business indicators of the Group hit record highs, with revenue of RMB 57.760 billion, a year-on-year increase of 10.3%, and a net profit of RMB 2.130 billion; the newly signed contract value for the year was RMB 63.150 billion, and the Board of Directors recommended to distribute the final dividend of RMB 0.222 per share. Plus the already distributed interim dividend of RMB 0.091 per share, the annual dividend payout ratio reached 65%, with a total dividend reaching RMB 0.313 per share, thus getting off to a good start for the 14th Five-Year Plan period.

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This year witnessed us forging ahead with determination and igniting the engine of scientific and technological innovation

We always take it as our mission to ensure the national energy security, accelerate the transformation and development of petrochemical industry, and serve people's pursuit of a happy life. We take the initiative to act as the strategic scientific and technological force for national development, focus on "bottlenecking" and forward-looking technologies, and make all-out efforts to press ahead with technological research. During the reporting period, progress was smoothly made in the 38 national-level projects, 22 key scientific and technological projects and 20 major special projects of Sinopec Group undertaken by the Group. PAO (Poly Alpha Olefin) was successfully put into production with production technology and industrial application in place, filling the technical gap of low-viscosity synthetic high-quality lubricating oil in China. The technology of producing ethylene through direct cracking of crude oil, known as "making bread with wheat", has been successfully tested by Tianjin Petrochemical Co., Ltd., opening up a new path for "reducing oil and increasing chemicals" and efficient utilization of crude oil. In 2021, innovation achievements won 92 (times)of the scientific and technological progress awards at the provincial and ministerial levels or above, 681 new patent applications were completed, and 422 new patents were authorized. Innovation played its leading and supporting role more significantly.

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Revenue

57.760RMB billion YoY increased by

10.3%

Dividend per share

0.313RMB

This year witnessed us focusing on green and low-carbon development

Annual dividend payout ratio

Committed to cultivating excellent genes for the highquality development of the petrochemical industry, we actively carried out research on the green and low-carbon

65%

development of the petrochemical industry, explored ways of creating a multi-energy coupling development path and a new multi-industry coordinated development model, provided high-end think tank support for the green, clean and efficient development of the industry, and gave all-out support to refining and chemical enterprises in upgrading and green transformation and development. During the reporting period, the newly-signed contract value of engineering and consulting business was RMB 5.920 billion, a year-on-year increase of 46.3%; 375 new consulting contracts were signed, more than half of which entered the stage of project implementation; nearly 30 projects were delivered digitally with breakthroughs made in the application of engineering digital twinning in smart factories. Focusing on the goal of "carbon peaking and carbon neutrality", we actively expanded our business in the fields of new energy, new materials, energy conservation and environmental protection. During the reporting period, the largest green hydrogen project in the world - Xinjiang Kuqa Photovoltaic Hydrogen Production Project, which we took part in, entered the project implementation stage, and the three hydrogen refuelling stations of the Beijing Winter Olympics that we undertook were successfully put into use. The carbon fiber codeveloped by the Group was used in the torch manufacturing for the Beijing Winter Olympics. In addition, a carbon neutrality green joint research and development center was jointly established with the Institute of Process Engineering of the Chinese Academy of Sciences and Yanshan Petrochemical Co., Ltd. so as to make our contributions to the Beijing Winter Olympics and the construction of "beautiful China".

This year witnessed us acting in a down-to-earth manner and laying a solid foundation for high-quality development

We pressed ahead by promoting the establishment and operation of QHSE management system and laid a solid foundation for the high-quality development of the Company. During the reporting period, we achieved two national quality engineering gold awards and two silver awards, and 21 quality awards at the provincial and ministerial levels and above. Zero accident was reported in safety, quality and environmental protection throughout the year and 295 million safety work hours realized continuously. At the same time, eight member enterprises won the title of "Green Enterprises". The Group successfully obtained the QHSE management system certification in line with ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018 standards, and thus became the first listed company in China's petrochemical engineering industry to obtain such certification, demonstrating the Company's spirit of continuously consolidating its management foundation, promoting high-quality development and constantly pursuing excellence.

This year witnessed us giving priority to talent development

We always regard talents as the most precious resource, striving to promote the shared growth of our employees and the enterprise. We treat employees of different genders, ethnic groups and nationalities equally, respect their basic rights and interests, care about their occupational, physical and mental health, create a comfortable working environment and a harmonious, friendly and united working atmosphere; strengthen the build-up of our talent teams, open up the growth channels for various talents, establish a multi-level and all-round training system, optimize our talent incentive mechanism and fully release the vitality of talents. During the reporting period, the Group has 1 academicians of the Chinese Academy of Sciences, and 3 academicians of the Chinese Academy of Engineering, 1 national expert with outstanding contributions, 49 people who enjoy special government subsidies, 1 national candidate of "Millions of

Talents Project", 5,648 people who have obtained senior professional and technical qualifications, 10 who became senior experts of Sinopec Group and 3 technical masters of Sinopec Group, and 8 who became winners of Min Enze Young Talents Award, fully demonstrating the Company's strengths in talent pooling.

This year witnessed us working together towards a happy and beautiful home

We earnestly fulfilled our social responsibilities and worked together to build a happy and beautiful home. Thanks to our ceaseless efforts in the prevention and control of the COVID-19 pandemic, we won the battles against the virus. While achieving good results in pandemic prevention and control, we organized volunteer teams to participate in local pandemic prevention and control efforts, fully demonstrating the sense of responsibility of a central state-owned enterprise. We actively carried out consumption and education assistance, contributing to the economic development and educational revitalization of rural areas. We carried out external donation and voluntary services in an organized manner, covering education, medical care, post-disaster reconstruction, pandemic prevention and control, care of vulnerable groups, etc. We actively promoted the economic and social development of areas where we operate our projects and pitched in with community construction to repay the society and be a global corporate citizen.

Dear shareholders and friends from all walks of life, the Board of Directors of the Company has always been attaching great importance to ESG work, thus has established the ESG Committee which is responsible for studying and supervising the commitment and performance of key ESG issues of the Company. In 2022, we will continue to improve our ESG governance framework and related policies to boost the Company's ESG performance. We will continue to strengthen scientific and technological innovation, build green and efficient productivity with advanced technology, and realize green and clean high-quality development. We will serve every client with the best technology and the most advanced equipment so that each of our works is endowed with the high-quality genes of green, efficient and low-carbon development. In the process of planning and design, we will continuously improve our own capabilities, including our engineering service capabilities, and realize the cleanness of production process through better process control. We will earnestly pay attention to the interests of all parties concerned, better integrate people's longings for a better life into our work, and plant ESG concept in all aspects of the Company. While building factories, we will fully take into consideration the integration and symbiosis of social, ecological and economic interests, so that every project that we design and build will make longer-term contributions to the development of the society and industry. In addition, we will continue to make donations and carry out voluntary services in full support of regional economic development and rural revitalization.

We value your constructive opinions and suggestions for the high-quality development of the Company and look forward to working with you to create a better future for the Company. We also hope that the Company will be able to make greater contributions to ensuring the national energy security, facilitating the transformation and development of petrochemical industry, serving people's pursuit of a happy life!

Mdm. Sun Lili

Chairwoman of the Board

2 2021 Environmental, Social and Governance Report

�oard o� �irector�� Statement on ESG Governance

The Board of Directors of �inopec �ngineering ��roup� Co., �td. promises that the Company will strive to follow the re�uirements of the �nvironmental, �ocial and �overnance Reporting �uide of �ong �ong �toc� �xchange, and continuously optomise its environmental, social and corporate governance �� mechanism, strengthen the Board�s role in supervising and participation on �� related issues, and vigorously integrate �� considerations into the Company�s major decision-ma�ing processes and various business practices.

�oard o� �irector��role in ESG �overnance

The Board of Directors bears the ultimate responsibility for the Company�s �� governance. The �� Committee under the Board of Directors is responsible for studying and overseeing the Company�s commitment and performance on �ey �� issues, coordinating with other committees and functional departments to incorporate �� factors into internal control, ris� management, strategic planning, renumeration and incentives, etc., and reporting �� permformances and major plans to the Board of Directors. The �� Committee is composed of five directors, with Chairwoman of the board serves as the chairperson of the committee. The �� Committee convenes at least once each year, and can hold ad-hoc meetings when necessary. The Committee shall inform the Board on ��-related issues in a timely manner.

ESG mana�ement ��ideline� and �trate�ie�

The Company attaches great importance to the signi�cant impact that �� ris�s may have on the Company. �very year, the Company updates its �� issue database based on �� ris� analysis, macro policies and trends, and feedbac� from sta�eholders. Then the �� issues are prioritised based on sta�eholder survey and expert evaluation results, providing guidance to prioritise the focus of the Company�s �� governance e�orts.

Revie� o� t�e pro�re�� o� ESG �oal�

As of the date of publication of this report, the Board of Directors has reviewed and approved the Company�s �1�th Five-�ear Plan�, including the six development strategies of �value-led, innovation-driven, green and clean, ma�ing the enterprise stronger with talents, global development, integration and symbiosis� as well as the goal of high-�uality development for the next �ve years. The Board of Directors will regularly review the completion of the goal. The Company has established a high-�uality development target management mechanism, covering major �� performance indicators such as greenhouse gas emissions, resource consumption and pollutant discharge, and will regularly review to chaec� these indicators. At the same time, the Company intergrates the Company�s �ey �� performance indicators such as wor�place safety, energy conservation and environmental protection, and operation compliance as the �P� for �ey management sta� and member enterprises, so as to contribute to the achievement of �� objectives. �n terms of the mediumterm goals set for sustainable development, the Board of Directors will regularly review to chec� the process of these targets.

� 2021 Environmental� Social and Governance Report

AB��T �� T�P�C MA�A��M��T ��R��M��T ��C��T� APP��D��

��o�t ��

The �roup is a leading energy and chemical engineering company in the PRC with strong international competitiveness and can provide domestic and overseas clients with overall solutions for petrol re�ning, petrochemicals, aromatics, coal chemicals, inorganic chemicals, pharmaceutical chemicals, clean energy, storage and transportation facilities, environmental protection and energy saving, among other industry sectors. The �roup is an integrated service provider for the whole industry chain and the whole life cycle in energy and chemical industry and can provide overall industry chain services including engineering consulting, technology developing and licensing, project management contracting, �nancing assistance, �PC �engineering, procurement and construction� contracting, as well as design, procurement, construction and installation, lifting and transportation of large e�uipment, precommissioning and start-up.

After nearly 70 years of continuous development, the �roup currently has one academician of the Chinese Academy of �ciences, three academicians of the Chinese Academy of �ngineering and nearly 10,000 professionals. The �roup has rich project management and implementation experience, and owns and cooperatively owns patents and �now-how in core business areas. The �roup has delivered on schedule hundreds of modern factories with enormous investment, complicated process, advanced technology and high �uality to clients in more than 20 countries and regions around the world, established long-term and steady cooperative relationships with large energy and chemical enterprises at home and abroad, maintained an extensive and stable client base, and enjoys remar�able industrial in�uence and social reputation.

The �roup has 11 wholly-owned enterprises in China: ��P�C �ngineering �ncorporation �td., ��P�C �uoyang �ngineering Co., �td., ��P�C �hanghai �ngineering Co., �td., ��P�C �ingbo �ngineering Co., �td., ��P�C �anjing �ngineering Co., �td., ��P�C �uang�hou �ngineering Co., �td., ��P�C Fourth Construction Co., �td., ��P�C Fifth Construction Co., �td., ��P�C Tenth Construction Co., �td., ��P�C �eavy �ifting � Transportation Co., �td., ��P�C �nergy Conservation Technology �ervice Co., �td., and ��P�C �ingbo Research �nstitute Co., �td., as well as two branches: �uoyang R�D Center of ��P�C �ngineering ��roup� Co., �td., and �nformation Technology Branch of ��P�C �ngineering ��roup� Co., �td.

The �roup was listed on the main board of the �ong �ong �toc� �xchange on May 23, 2013.

�n 2021, according to the �ngineering �ews-Record ��R�the Company ran�ed ��th among the world�s top 250 engineering contractors, 86th among the international top 250 engineering contractors, 38th among the world�s top 150 engineering design companies and 83rd among the international top 225 engineering design companies.

Economic �er�ormance�

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Total assets RMB Biilion Revenue RMB Biilion
2021 72.917 2021 57.760
2020 71.�65 2020 52.353
2019 67.87� 2019 52.261
2018 70.873 2018 �7.019
2017 59.�06 2017 36.209
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Pro�t before taxation RMB Biilion Total taxes and fees RMB Biilion Amount of new contracts RMB Biilion
2021 2.592 2021 2.276 2021 63.150
2020 3.011 2020 1.683 2020 63.01�
2019 2.827 2019 2.5�8 2019 52.319
2018 2.122 2018 2.576 2018 50.927
2017 1.635 2017 2.267 2017 39.063
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�r�ani�ational Str�ct�re

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�inopec �ngineering Construction Co., �td.
�inopec �uang�hou �ngineering Co., �td.
�inopec �hanghai �ngineering Co., �td.
�inopec �ingbo �ngineering Co., �td.
�inopec �anjing �ngineering Co., �td.
�inopec Fourth Construction Co., �td.
�inopec Fifth Construction Co., �td.
�inopec Tenth Construction Co., �td.
�inopec �eavy �ifting Transportation �ngineering Co., �td.
�inopec �ingbo Technology Research �nstitute Co., �td.
�uoyang Technology Research and Development Center
of �inopec �ngineering ��roup� Co., �td.
�inopec �nergy Management Technology �ervice Co., �td.
��inopec �nergy Management Technology �ervice Center�
�nformation Center of �inopec �ngineering ��roup� Co.,
�td. ��TC Branch�
�inopec �ngineering �roup �audi Co., �td.
�inopec �ngineering �roup Malaysia �dn. Bhd.
�inopec �ngineering �roup America �.�.C
�inopec �ngineering �roup �a�a�hstan Branch
�inopec �ngineering �roup Russia Branch
�inopec �ngineering �roup Abu Dhabi Branch
�inopec �ngineering �roup Co., �td.,sucursal en
�spa�a.
�inopec �ngineering �roup Russia ��C
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�eneral Management
Department
Board of Directors ��ce
Party-Mass Wor� Department
�Party Committee ��ce,
Party Committee Propaganda
Department, �nited Front Wor�
Department, �nterprise Culture
Department�
�nterprise Reform and
�egal A�airs Department
Finance Department
Party Committee �rgani�ation
Department ��uman Resources
Department�
�uality �afety Department
�upervision and Audit
Department �Commission for
Discipline �nspection ��ce,
Board of �upervisors ��ce�
�cience and Technology
Department
Mar�eting Department
�peration and Management
Department
�nternational Business
Department �Foreign A�airs
Management Department�
Audit Committee
�branches�
Domestic subsidiaries
Remuneration Committee
Board of Directors �enior Management
S�are�older�� eetin�
�trategy and
Development Committee
�branches�
�verseas subsidiaries
Board of �upervisors �ominations Committee
�� Committee
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6 2021 Environmental� Social and Governance Report

AB��T ��

T�P�C

MA�A��M��T

��R��M��T ��C��T� APP��D��

Topic1

�ool �orce� and �rive Green �evelopment t�ro�� nnovation

Climate change is a globally shared responsibility and challenge. The announcement of the goal of �carbon pea�ing and carbon neutrality� in 2020 mar�ed the opening of the green and low carbon curtain. �ustainable development, green and low carbon have become new development trends, and green transformation has become a new driving force for China�s economic and social development. The development direction of petrochemical industry in green and low carbon will focus on promoting the revolution of energy production and consumption, the establishment of green industrial systems and urbani�ation and low carbon development, forming an industrial structure and production mode committed to saving resources and protecting the environment, promoting the sustainable development of China�s economy, society and environment, and thus ma�ing important contributions to the response to global climate change.

��r opport�nitie�

The goal of �carbon pea�ing and carbon neutrality� has put forward new re�uirements for the green and low-carbon development of the energy and chemical industry. The demand of refining and chemical enterprises for improving �uality and efficiency, transformation and development is increasing day by day, providing vast mar�et opportunities for the Company. The �roup will actively respond to the challenge of climate change, ta�e the initiative to act as a strategic scienti�c and technological force for China�s green development, ta�e scienti�c and technological innovation as its development engine, provide high-end thin� tan� support for the green, clean and e�cient development of the industry, and help re�ning and chemical enterprises to enhance their green and low-carbon competitiveness, striving to become an innovative leading force for the green transformation of China�s energy and chemical industry.

��r action�

Technological innovation is essential to the achievement of the goal of �carbon pea�ing and neutrality�. Focusing on core technologies in �ey areas, the �roup has carried out technological research in the fields of �oil producing chemicals�, �oil to chemicals� and�oil to specialties�, high-end chemical materials, whole industrial chain of hydrogen energy and CC�� Carbon Capture, �tili�ation and �torage�, ta�ing the initiative to underta�e major technology research tas�s, promoting industry transformation and upgrading, increasing research and development of green and e�cient process technologies, and providing momentum for green development.

During the reporting period, with regard to technology research and development, 38 national-level projects, 22 �ey scientific and technological projects and 20 major special projects underta�en by the �roup went well. �PA� �Poly Alpha �le�n� Production Technology Development and �ndustrial Application� was successfully put into production, �lling the technical gap of low-viscosity fully synthetic high �uality lubricating oil in China. The technology of ma�ing ethylene through direct crac�ing of crude oil, �nown as �ma�ing bread with wheat�, has been successfully tested by Tianjin Petrochemical Co., �td., opening up a new path for �reducing oil and increasing chemical content� and e�cient utili�ation of crude oil. The R�D and industrial application of �the complex raw material complete sets technology for million tons grade of steam crac�ing to ethylene� won the �rst pri�e of the China �ational �cience and Technology Progress Award, ma�ing important contributions to supporting the high-�uality development of China�s petrochemical industry.

During the reporting period, the �roup accelerated the technological development of the whole industrial chain of hydrogen energy, undertoo� eight major hydrogen energy projects, such as hydrogen li�uefaction, initially forming an integrated R�D pattern of hydrogen energy production, storage and transportation, and terminal utili�ation. �u�a Photovoltaic �ydrogen Production Project, the largest green hydrogen project in the world, entered the project implementation stage, and the multi-thousands tons grade of green hydrogen projects in �rdos and �lan�ab was carried out as scheduled. The three hydrogen refueling stations in �iwan�i, Chongli, �ebei Province, were successfully put into operation, providing hydrogen energy guarantee for the �lympics Winter �ames. At the same time, the �roup leaded and participated in the formulation of a series of hydrogen energy-related standards, vigorously promoting the construction of �inopec�s hydrogen energy industry chain and contributed to the high-�uality development of China�s hydrogen energy industry.

During the reporting period, the �roup continued to expand the technical development in the �eld of new materials, the trial-device of polyole�n elastomer started construction in Maoming, the projects of low-cost large-tow carbon �ber of �hanghai Petrochemical Co., �td. and �ilu special rubber went well, laying a solid foundation for the Company�s development in the �eld of new materials. At the same time, the carbon �ber partially developed by the �roup was used for the shell of the �lympics Winter �ames torch �Flying�, which is high-temperature resistance and successfully solved the problems of and cold feel of the metal shell used for the torch relay in winter.

�The complex raw material complete sets technology for million tons grade of steam crac�ing to ethylene� won the �rst pri�e of the China �ational �cience and Technology Progress Award

Case

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The R�D and industrial application of �the complex raw material complete sets technology for million tons grade of steam crac�ing to ethylene� completed by ��P�C �ngineering �ncorporation �td., a member company of the �roup, won the �rst pri�e of the China �ational �cience and Technology Progress Award.

Based on the source and structure of China�s ethylene raw materials, the �roup has developed this technology, using light raw materials such as light hydrocarbon and naphtha, heavy raw materials such as diesel oil and hydrogenated tail oil, and unconventional raw materials such as high olefin content, ma�ing China the first country to master such technology. This technology is generally at the international leading level and would drive over a trillion output value of downstream industries. This technology effectively support the high �uality development of China�s petrochemical industry, ma�ing a signi�cant milestone for the whole industry.

The technology of ma�ing ethylene production through direct crac�ing of crude oil has been successfully tested for the �rst time.

Case

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The technology of ma�ing ethylene production through direct crac�ing of crude oil has been successfully tested by Tianjin Petrochemical Co., �td. for the �rst time, reali�ing the first industrial application of the crude oil direct crac�ing technology in China. This technology, developed by ��P�C �ngineering �ncorporation �td., a member company of the �roup, is an important path of �oil to chemicals�, which �s�ips� the traditional crude oil re�ning process and directly converts crude oil into ethylene, propylene and other chemicals, thus reali�ing the direct conversion from �wheat� into �bread�, omitting the lin� of grinding it into �our and greatly shortening the production process and reducing the production cost, and signi�cantly reducing the energy consumption and carbon emissions. Therefore, this technology is of great signi�cance to the transformation and upgrading of China�s petrochemical industry and the reali�ation of the goal of �carbon pea�ing and carbon neutrality�.

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Case The �rst domestic �plastic gold� was produced

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�n February 2022, the �rst domestic �3000t/year high-isotactic polybutene -1 industrial demonstration device� which was underta�en and partially developed by �inopec �ngineering �ncorporation, a member company of the �roup, was successfully put into operation, producing nearly 100 tons of �uali�ed products.

Difficult to crac� and being impact-resistant, tasteless, odorless and nontoxic, Polybutene -1 products are �nown as �plastic gold� and very suitable for being used as pipes, medical e�uipment, food pac�aging and medical pac�aging. Due to the difficulties in polymeri�ation control and product processing of butene -1, however, only three companies in the world, i.e., Basell in the �etherlands, Mitsui in �apan and Ai�ang in �outh �orea, were able to produce butene -1, and all domestic high-end polybutene-1 products were imported. The success of the industrial demonstration of polybutene -1 technology mar�s a major technological brea�through of �inopec in the �eld of high-end synthetic new materials, ma�ing �inopec the fourth enterprise in the world and the first in China that is able to continuously and stably produce polybutene -1 products.

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Case The world�s largest multi-thousands tons grade of photovoltaic green hydrogen demonstration project

�injiang �u�a green electricity hydrogen production and green hydrogen refining demonstration project is the world�s largest photovoltaic green hydrogen production project under construction. �uang�hou �ngineering Co., �td., a member company of the �roup, is responsible for the overall plant. This project has successfully entered the implementation stage. At the same time, this project is China�s first large project that produces hydrogen directly by photovoltaic power generation and �inopec�s first typical demonstration project running through the whole process of green hydrogen production and utili�ation, such as solar power generation, green electricity transmission, green electricity hydrogen production, hydrogen storage, hydrogen transportation, green hydrogen re�ning, etc.

This project has created a new development path for green hydrogen re�ning, and is of demonstration signi�cance to the large-scale utili�ation of green hydrogen by re�ning and chemical enterprises to reduce carbon emissions. After the project is put into operation, the green hydrogen produced will be supplied to Tahe Re�ning and Chemical Co., �td. to replace the existing natural gas fossil energy to produce hydrogen, which could reduce carbon dioxide emissions by �85,000 tons per year. �t is of great signi�cance to ensuring national energy security, improving atmospheric environmental �uality and promoting the upgrading of energy industry.

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Case Technological innovation contributed to the Beijing �lympics Winter �ames

The torch of the Beijing �lympics Winter �ames �Flying� was attracted worldwide attention. The carbon fiber composite material used in the torch was developed by �hanghai �ngineering Co., �td., a member company of the �roup. �ne of its technological highlights was that the torch shell was made of light-weight high-temperature resistant carbon �ber, showing the characteristics of �lightness, toughness and beauty�. At the same time, the carbon �ber is high-temperature resistance and successfully solved the problems of and cold feel of the metal shell used for the torch relay in winter.

During the Beijing �lympics Winter �ames, the �lympic �rgani�ing Committee made extensive use of hydrogen fuel cell vehicles. As the cleanest and most environmentally friendly fuel, hydrogen can achieve complete �ero emission. The three hydrogen refueling stations at �iwan�i, Chongli, �ebei Province, built by ��P�C �ngineering �ncorporation �td., a member company of the �roup, were successfully put into use, providing green hydrogen energy guarantee for the �lympics Winter �ames. As the first of its �ind in China, all the three hydrogen refueling stations are designed with the hydrogen filling function of 70MPa pressure fuel cell, with the daily supply of �000�g.

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with the daily supply of a� t�e �r�t 4000kg o� it� �ind in ��ina

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The largest hydrogen refueling stations with the highest �lling pressure in China have been put into operation to serve the �lympics Winter �ames

Torch delivery and acceptance ceremony

Topic2

�o a Good �o� in �� andemic �revention and �ontrol

The pandemic prevention and control is a tough battle and a daunting challenge. �n 2021, actively responded to complicated situation of repeated pandemic, the �roup adhered to the combined layered prevention and control with local emergency response in implementing various prevention and control measures, achieved double victories in pandemic prevention and control and safe production

�n China, outbrea�s of C��D-19 pandemic successively occurred in �anjing, �ingbo, �uang�hou, �hanghai, Tianjin, Beijing, etc, which caused some impacts on the �roup and project sites. From the perspective of resolutely ensuring safety, all member enterprises and projects made concerted e�orts to overcome di�culties, actively wor�ed with communities in pandemic prevention and control while doing a good job in their own wor� on pandemic prevention and control, and organi�ed volunteer teams to participate in local pandemic prevention and control services, thus eventually winning the battles against the C��D-19 pandemic, ful�lling the responsibility of the enterprise and further consolidating the record of ��ero infection� in the Company.

Despite the di�cult situation overseas, the �roup, than�s to its coordinated and active e�orts, successfully �ept the bottom line of �no gathering infection and no death due to infection�, and organi�ed employees to ta�e turns o� in an orderly manner. There were no con�rmed, suspected or asymptomatic infected persons or returnees from overseas projects.

��ild a ��re�all� a�ain�t t�e pandemic

With its �three-level� pandemic prevention and control system always operating in an e�cient manner, the �roup, adhering to the principle of the e�ective combination of normal prevention and control and emergency response, organi�ed the whole chain control such as personnel inspection, health monitoring, nucleic acid testing and vaccination, thus withstanding the test of the pandemic which bro�e out many times in 2021.

Case Blow the anti-pandemic horn at Zhenhai Base

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�n December 2021, many places in Zhejiang sounded the anti-pandemic alarm. The Project Department of Zhenhai Base of �ingbo �ngineering Co., �td., a member company of the �roup, �uic�ly hit the ground running, �ic�ed o� its emergency plan and strictly implemented the latest pandemic control measures issued by Zhenhai District.

�tic�ing to their posts, the employees of the Project Department made all-out efforts to ensure the smooth and orderly construction of the project while doing a good job in pandemic prevention and control. The Department arranged more than 300 construction wor�ers to stay in the dormitories in a uni�ed way to ensure their health and safety. While doing a good job in pandemic prevention and control, the company showed great concern for the food, clothing, housing and transportation of employees and responded to their needs in time, thus ensuring e�ective control on the basis of being considerate towards employees.

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�hanghai �ngineering Co., �td. arranging its employees for collective C��D-19 vaccinations

�inopec Fourth Construction Co., �td. going all out to ensure ade�uate supplies for the Project Department

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�oin t�e vol�nteer team� in ��tin� t�e pandemic

�n response to the sudden outbrea�s of the pandemic in di�erent places, we organi�ed employees to �ght the pandemic and arranged young volunteers to participate in the pandemic prevention and control, ful�lling our social responsibilities as a central enterprise.

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A banner given by the community to �inopec Fifth Construction Co., �td. to express than�s

�uang�hou �ngineering Co., �td. donating pandemic prevention materials to �uang�hou �outh �eague Committee

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A than�-you letter to �anjing �oung volunteers from �anjing �ngineering Co., �td. helping the �eighborhood Committee complete four �ngineering Co., �td. rounds of nucleic acid testing which involved a total of about 23,000 people

�in t�e �attle a�ain�t t�e �� pandemic over�ea�

�verseas, we �uic�ly set up the responsibility system for overseas pandemic prevention and control, formulated and updated the emergency plan for pandemic prevention and control as well as the wor� plan for normal pandemic prevention and control, increased the application and management of locali�ed resources, and too� e�ective measures to promote the resumption of wor� and production. During the reporting period, overseas project departments successfully withstood the test of the mutant viruses of Delta and �micron against the odds, ensured the orderly implementation of the project.

Paying attention to employees�physical and mental health, we arranged employees for C��D-19 vaccinations and prepared pandemic prevention �its� carried out trainings on public safety and pandemic prevention �nowledge for employees posted overseas, distributed pandemic prevention and control materials and subsidies, and regularly held overseas employees comforting meetings and pandemic prevention and control patrol meetings� invited experts to provide psychological counseling for overseas employees in response to overseas pandemic situations to alleviate their anxiety� specially organi�ed commercial chartered �ights for employees to return to China, reali�ing safe round trips for over 3,000 person-times throughout the year� and monitored the health of employees in the whole chain after they returned to China according to the re�uirements of pandemic prevention and control.

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�inopec Tenth Construction Co., �td. implementing the ��pring �eedling �nitiative� in the country where the project is located

�uccessfully complete the chartered �ight tas� to ensure that the construction of the Russian A�CC project can proceed on schedule

Topic3

S��tem �on�tr�ction Help� �mprove t�e �ompan�� ana�ement E�cienc�

During the reporting period, the Company focused on strengthening process management and ris� prevention and control and benchmar�ing against international standards, too� �carrying out the wor� on the construction and certi�cation of the management system� as its annual �ey tas� and organi�ed all staff to participate in the tas�. After one year�s efforts, the Company improved its management system platform, formed 2� process modules, compiled 25� process control documents, revised 95 management systems, and established a management system based on ris� thin�ing, process standards, strengthened process management and control, and integration with institutional systems.

The Company carried out the internal audit and management review of the management system, and conducted comprehensive and thorough analysis and discussion on the operation of the management system and the overall operation of the Company to ensure the suitability, su�ciency and e�ectiveness of the management system. At the same time, according to the audit results, the Company formulated the cause analysis and recti�cation plan for non-conformities, improvements and follow-up items, and wor�ed out the follow-up recti�cation plan for the review comments put forward through the management review, thus ensuring the continuous improvement of the management system.

During the reporting period, the Company successfully obtained the �� management system certification certificate in line with �� 9001:2015, �� 1�001:2015 and �� 5001:2018 standards, and became the �rst listed company in China�s petrochemical engineering industry to pass such certi�cation. The construction and certi�cation of the management system is of great signi�cance for the Company to improve its management ability, specify its management interface, and de�ne its wor� �ow and standards, laying a solid foundation for building a world-leading technology-oriented engineering company and for achieving high-�uality development.

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�� management system certi�cation certi�cate

Management promotion training meeting

�2 2021 Environmental� Social and Governance Report

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The Company has continuously improved its corporate governance structure, standardi�ed the
operation of the �hareholders� Meeting, the Board of Directors and the Board of �upervisors and
the wor� of the Company�s management in strict accordance with laws and regulations, constantly
enhanced the corporate governance level, perfected its internal control system and enhanced
its ability to resist ris�s� continuously improved its integrity and compliance management level,
and standardi�ed the behaviors of the enterprise, employees and supply chain partners to ensure
the clean and efficient operation of the Company� improved the level of information disclosure,
strengthened relations with investors, built an �� concept system that bene�ts all parties concerned,
and wor�ed together with all sta�eholders to achieve sustainable development.
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�D�s issues that this chapter responds to

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01
�ana�ement
�6 �evelopment Strate�ie�
�8 �orporate Governance
23 �ompliance �peration
2� Ri�� ana�ement
26 S��taina�ilit� �ana�ement
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�evelopment Strate�ie�

��rin� t�e reportin� period, t�e �ompan� i��ed it� ��t� �ive��ear �lan�.

Development Vision

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�reate t�e �orld�� leadin� tec�nolo��oriented en�ineerin� compan�.
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Development Orientation
� compre�en�ive �ervice
Development Engine
provider in t�e ��ole
ind��trial c�ain and
li�e c�cle o� ener�� and En�ineerin� innovation Development Strategy
c�emical ind��tr�. and val�e creation.
�al�e��riented
�nnovation��riven
Green � �lean
�alent��a�ed
Glo�ali�ation��ar�eted
��ion S�m�io�i�
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Maximi�e the Company�s overall value and ensure the consistency of shareholder value, customer value, social value and employee value. �trengthen the integration of external resources and the optimi�ation of internal resources, continuously expand the high-end core lin�s of the energy and chemical industry chain and the engineering service business chain, constantly improve the Company�s development �uality and e�ciency, and enhance shareholder value. Focus on customer needs, continuously strengthen the onestop service capacity building throughout the life cycle from project trac�ing to project operation, provide diversified engineering services with industry-leading levels, create high-end service advantages, and achieve win-win situation along with clients. �erve the society with high-�uality projects, green projects and safety projects, and earnestly ful�ll our social responsibilities. Provide a platform for employees to reali�e their own value and enhance employee value.

�al�e��riented

Put innovation at the core position of the Company�s overall development, and adhere to the concept of innovation-driven development. Develop new competitive advantages through innovation-driven development, and strengthen the long-term driving force of development. Turn technology into productive forces and improve the �uality and e�ciency of development. �se high-tech and advanced applicable technologies to transform and upgrade traditional industries, reduce consumption and pollution, and provide engineering and technical services for changing the development model of excessive consumption of resources and environmental pollution.

�nnovation��riven

Green � �lean

Combined with the strategic demand of the state for the development of energy and chemical industry, and under the goal of �carbon pea�ing and carbon neutrality�, promote the technological innovation and industriali�ation development of deep decarboni�ation in the industry, formulate low-carbon regulations and relevant technical standards, accelerate the low-carbon transformation of petrochemical industry, and enhance the green and low-carbon competitiveness. Ma�e the traditional energy utili�ation process more energy-saving, consumption-reducing, emission-reducing and low-carbon through technological innovation and engineering innovation so as to contribute to green development. Promote the coupling development of new energy sources such as wind energy, solar energy, geothermal energy and nuclear energy with traditional energy sources, reduce the carbon emissions of the industry while ensuring pro�tability, and promote the sustainable development of the energy and chemical industry. Create green enterprises and green construction sites while helping clients to reali�e green development.

Firmly establish the strategic position of talent leading development. Attach e�ual importance to educational training and hands-on experience, and earnestly strengthen personnel training and echelon construction. Accelerate the mar�et-oriented talent selection and employment mechanism� adhere to the performance-oriented principle, and constantly optimi�e the evaluation system in line with the characteristics of different types of talents� adhere to the mar�et-oriented reform direction and continuously improve the incentive mechanism of salary distribution� adhere to the talent-oriented concept, and vigorously create a sound and favorable environment to support talent innovation and entrepreneurship. �trengthen the construction of cadres around �seven abilities�. Create a talent team for the high-�uality development of the Company.

�alent��a�ed

Based on the domestic mar�et, open up the overseas mar�et, coordinate the domestic and international mar�ets and resources, promote each other and develop in a coordinated manner. Focus on the strategic target mar�et and accelerate the formation of the strategic pattern of the Company�s global mar�et. Based on system construction and personnel training, accelerate the establishment of a diversi�ed management and standard system to meet the needs of the implementation of international projects, and enhance the internationali�ation level of talents and the locali�ed operation ability of projects.

Glo�ali�ation��ar�eted

Reali�e integration and symbiosis between projects and nature, integration and win-win situation for the Company and sta�eholders, integration and symbiosis between all member enterprises of the Company, integration and sharing between the Company and its employees, and integrated development of traditional energy business and new energy business. �stablish multi-dimensional cooperative relations with clients, research institutes, manufacturers and sta�eholders, innovate cooperation models, and create a mutually beneficial and win-win business environment. �stablish a mechanism of orderly competition and coordinated development featuring both division of labor and cooperation, and create group-based scale advantages and integrated synergy effect. �stablish an enterprise ecosystem where employees and the Company are integrated and symbiotic, so that employees and the Company can grow together and share the Company�s development achievements.
��ion S�m�io�i�

�6 2021 Environmental� Social and Governance Report

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�orporate Governance

�on�tr�ction o� t�e �oard o� �irector�

The Board of Directors is the core of corporate governance. The Company has continuously improved the composition of the Board of Directors, perfected the system of the Board of Directors and its special committees, and paid attention to the role of independent directors, thus laying a solid foundation for the Company�s sustainable development. The Board of Directors is the decision-ma�ing body of the Company. �n 2021, the Company held �ve Board meetings. Members of the Board give full play to their professional s�ills and exercise their powers as directors in accordance with relevant regulations, actively promoting the high-�uality development of the Company.

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�em�er� o� t�e �oard

Chairwoman S�n �ili

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Mdm. �un is an expert in refining and chemical engineering technology and management, a master of national engineering survey and design, and an academician of the Chinese Academy of �ngineering. �he is currently the member of �cience and Technology Committee of �inopec �roup, the chairwoman of the Company and executive director of �inopec �ngineering �ncorporation �td.. Devoted herself to the research and practice of refining and chemical engineering technology, Mdm. �un has planned, designed and built many representative projects, such as, China�s first self-developed Paraxylene Complex, the first single series tenmillion-ton-grade refinery and the world�s second largest high-acid natural gas purification plant. As the winner of 2 special pri�es for �ational �cienti�c and Technological Progress Award, and of the �o �eung �o �ee Foundation �cience and Technology �nnovation Award and the �ou Debang Chemical �cience and Technology Achievement Award, Mdm. �un enjoys the special government allowance from the �tate Council. Mdm. �un has made significant contributions to the green development of China�s re�ning and chemical industry, ensuring national energy security and serving the people for their better lives.

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�ice chairman �ian� �en��

Mr. �iang is a senior economist with a Ph.D. degree. �e is currently the vice Chairman of the Board and also serves as the executive director of �inopec Fourth Construction Co., �td.. With more than 30 years� wor�ing experience in China�s energy engineering industry, he successively served in managerial positions at The �econd Construction Company of �inopec and �inopec �anjing �ngineering Co., �td.. With comprehensive and rich experience of technology and management in engineering, Mr. �iang has made significant contributions to the green, lowcarbon, environment-friendly, safe and high-�uality development of China�s energy industry.

The First Meeting of the Fourth �ession of the Board

�iver�i�cation o� t�e �oard o� �irector�

When selecting candidates for the Board of Directors and appointing directors, the �omination Committee will, according to the �roup�s business model and speci�c needs, consider the diversi�cation of Board members from many aspects, including but not limited to professional experience, s�ills, �nowledge, gender, region, culture, educational bac�ground, age and service term. The diversi�ed composition of the Board of Directors helps the Company to standardi�e its operation and improve its decision-ma�ing level.

The Company pays attention to the implementation of the policy of diversi�cation. The current Board members are from di�erent industries at home and abroad and have rich wor�ing experience and professional �nowledge in petrochemical, economics, accounting and �nance, which helps the Board of Directors to ma�e decisions in a scienti�c manner.

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Director �an� �i�on�

Mr. Wang is a senior engineer with a Ph.D. degree. �e is currently a director of the Board and also serves as deputy chief engineer of �inopec �roup, general manager of information and digital management department of �inopec �roup, general manager of information and digital management department of �inopec Corp., and chairman of Petro-CyberWor�s �nformation Technology Co., �td.. With more than 30 years of wor�ing experience in China�s energy industry, he successively served in managerial positions at Beijing Petrochemical �ngineering Co., �td. and �inopec �ngineering �ncorporation. Mr. Wang has made signi�cant contributions to the green, lowcarbon, environment-friendly, safe and high-�uality development of China�s energy industry.

Director �i ��en��en�

Mr. �i is a senior engineer with a master degree. �e is currently a director of the Board, and also serves as deputy chief engineer of �inopec Corp., general manager of chemical business department of �inopec Corp., chairman of �hanghai ��CC� Petrochemical Co., �td., chairman of A�CC project joint venture, executive director of �inopec Asset Management Co., �td., and �ice Chairman of ZT�C �nergy Co., �td.. With more than 30 years of wor�ing experience in China�s energy industry, he successively served in managerial positions at BA�F�PC Company �imited, �inopec �ang�i Petrochemical Company �imited, �inopec Chemical Commercial �olding Company �imited, �inopec Chemical Commercial �olding ��ong �ong� Co., �td. and �ino-�orean �Wuhan� Petrochemical Co., �td.. Mr. �i has made significant contributions to the green, low-carbon, environment-friendly, safe and high-�uality development of China�s energy industry.

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Director �� en�in

Mr. Wu is a senior engineer with a master degree. �e is currently a director of the Board, and also serves as the general manager of the engineering department of �inopec �roup, and the general manager of the engineering department of �inopec Corp.. With more than 30 years of wor�ing experience in China�s energy industry, he successively served in managerial positions at Fujian Petrochemical Co., �td. and Fujian Re�ning � Petrochemical Co., �td.. Mr. Wu has made signi�cant contributions to the green, low-carbon, environment-friendly, safe and high-�uality development of China�s energy industry.

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�ndependent director �e ��en�

Mr. �e holds a bachelor�s degree in Accounting and Finance and a master�s degree in Business Administration. �e is a member of the American �nstitute of Certified Public Accountants and the �ong �ong �nstitute of Certi�ed Public Accountants. �e was a consulting expert for the third session of the committee for enterprise internal control standards appointed by the Ministry of Finance of the People�s Republic of China. �e is currently an independent director of the Company and a director of Ace �ustainability � Ris� Advisors �imited. With more than 25 years�wor�ing experience in auditing, internal control and ris� management, Mr. �e has made significant contribution to improve the Company�s e�ectiveness of internal control and operation.

For more details of the resumes of the Board members, please refer to the 2021 Annual Report of the Company.

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Director and general manager �ian� �e��n

Mr. �iang is a senior engineer with a Ph.D. degree. �e is currently director of the Board and President of the Company. With more than 30 years� wor�ing experience in China�s energy industry, Mr. �iang successively served in managerial positions at �an�hou Design �nstitute of �inopec �roup, �ingbo �ngineering Co., �td. of �inopec �roup, �inopec �ngineering Co., �td., the �ngineering and �nterprise Management Department of �inopec �roup, �inopec Fifth Construction Co., �td., �inopec �ngineering �ncorporation, and �inopec �ngineering ��roup� Co., �td.. With comprehensive and rich experience in technology and management, Mr. �iang has made signi�cant contributions to the green, low-carbon, environment-friendly, safe and high�uality development of China�s energy industry.

�ndependent director �� ao��on�

With over 50 years�experience in securities and investment, Mr. �u is currently an independent director of the Company. �e is currently Chairman and Administrative President of �u�foo� Financial �ervices. �e has served as director and vice chairman of the Board of Directors of the �ong �ong �toc� �xchange, a member of the Advisory Committee of the �ecurities � Futures Commission of �ong �ong and a member of the Real �state �nvestment Trust Fund Committee, director of the �ong �ong �ecurities Clearing Company �imited, member of the �isting Committee of the �ong �ong �xchanges and Clearing �imited, member of the �ecurities and Futures Appeals Tribunal, member of the �tanding Committee of Company �aw Reform, and member of the �nvestigation Panel of the �ong �ong �nstitute of Certi�ed Public Accountants. Mr. �u has made signi�cant contributions to improving the governance �uality of the companies listed in �ong �ong and to promoting the company�s compliance operation.

Str�ct�re o� t�e �oard o� �irector�

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Service term
�ppointed po�ition ��e �Total number of
�Total number of people� �Total number of people�
people� �a�or
�xecutive director �Total number of �nder 5 years
3 Gender people� 5
Aged 50-60
�Total number of 6
�on-executive director Accounting 5-10 years
people� 4
3 Above 60 and Finance 2
3
�ndependent non- Male Re�ning �
executive director 3 8 Chemical
�ndustry 7
Female
1
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�ndependenc� o� t�e �oard o� �irector�

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�ndependent director �in �on�

Mr. �in is an academician of the Chinese Academy of �ngineering and is currently an independent director of the Company. �e is also president of Tsinghua �niversity�s �nstitute of Chemical �cience and Technology, professor of Tsinghua �niversity�s Department of Chemical �ngineering, executive director of the Chinese �ociety of Particuology and executive director of the Chemical �ndustry and �ngineering �ociety of China. �e used to be a lecturer, associate professor, professor and doctoral supervisor at Tsinghua �niversity�s Department of Chemical �ngineering. With more than 60 years� wor�ing experience, Mr. �in has made significant contributions to China�s energy science and technology progress, green and low-carbon development as well as the reali�ation of the goal of �carbon pea�ing and carbon neutrality�.

The Company has established a perfect independent director system and selected independent directors from domestic and foreign celebrities and industry experts in strict accordance with the election procedures and �uali�cations stipulated in the Articles of Association to ensure that independent directors account for not less than 1/3 of the Board members.

�ndependent directors conscientiously perform their duties in accordance with the Company�s Wor� �ystem for �ndependent Directors. When expressing independent opinions on company affairs, they pay special attention to the following items: major related transactions, annual pro�t distribution plan, appointment and dismissal of senior management personnel, and matters that may harm the interests of medium and small shareholders. Besides exercising the general functions and powers of directors, the Articles of Association also endows independent directors with some special functions and powers to ensure that they can e�ectively safeguard the legitimate rights and interests of shareholders, especially medium and small shareholders.

�ndependent of the Company�s management and other interests, independent directors can independently play a supervisory role and provide objective suggestions for the Company�s decision-ma�ing. �n the formulation and voting process of the triennial related transaction plan during the reporting period, the independent directors of the Company played an active supervisory role and exercised their suggestion functions, helping the Company to ma�e fair and reasonable decisions that complied with the interests of the Company and all shareholders.

20 2021 Environmental� Social and Governance Report

2�

SINOPEC Engineering �Group� Co�� Ltd�

AB��T �� T�P�C MA�A��M��T ��R��M��T ��C��T� APP��D��

Governance �tr�ct�re

�trictly abiding by the Company �aw of the People�s Republic of China, the �isting Rules of the �toc� �xchange of �ong �ong �imited as well as other relevant laws, rules and regulations, the �roup has established a corporate governance structure with �hareholders�Meeting, Board of Directors, Board of �upervisors and senior management as its main subject in accordance with the Articles of Association and other relevant systems, and continuously improved the governance rules and management system characteri�ed by clear rights and responsibilities, standardi�ed operation, mutual coordination and mutual chec�s and balances among power organs, decision-ma�ing organs, supervisory organs and the management so as to achieve high-level corporate governance.

�n order to give full play to its functions and improve its decision-ma�ing �uality, the Board of Directors of the Company has set up �ve special committees, i.e., the �trategy and Development Committee, the Audit Committee, the �omination Committee, the Remuneration Committee and the �� Committee. All members of each special committee are directors of the Company.

�trategy and Be responsible for studying the Company�s long-term development strategy, major capital Development expenditure and investment and �nancing decisions, etc. Committee Ma�e suggestions on the employment, renewal, dismissal and audit fees of the independent auditors of the Company� review the �nancial statements that the Company submits to the Board Audit Committee of Directors, and chec� the Company�s �nancial policies, internal audit system, internal control system, ris� management system, etc. Ma�e recommendations to the Board of Directors on the appointment or re-appointment of �omination directors and the succession plan of directors, hunt for people with suitable �uali�cations to serve Committee as directors, and select and nominate people to serve as directors or o�er advice to the Board of directors on this. �tudy the remuneration structure and policies of all directors, supervisors and senior management of the Company and ma�e recommendations to the Board of Directors, or determine the Remuneration remuneration and benefits of individual executive directors and senior management members Committee with the authori�ation of the Board of Directors or ma�e recommendations to the Board of Directors. The remuneration of directors shall be determined in accordance with relevant national laws and regulations and the Company�s relevant remuneration management regulations. Ma�e recommendations to the Board of Directors on major decisions related to �� development �including environment, society and governance, etc.�� upervise the implementation and progress of the Company�s �� development strategy and plan� �upervise the Company�s commitment and performance on �ey issues such as climate change, ensuring health and safety and ful�lling social �� Committee responsibilities, and ma�e suggestions to the Board of Directors�Pay attention to the important information of �� development related to the Company�s business, study �� developmentrelated issues, and ma�e suggestions to the Board of Directors� Review the annual �� report of the Company and ma�e recommendations to the Board of Directors.

Governance �tr�ct�re o� t�e �ompan�

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�hareholders�Meeting
Boa rd of �upervisors
Board of Directors
�ominations Remuneration �� Committee �trategy and Audit Committee
Committee Committee Development Committee
For more information of corporate governance, please refer to the 2021 Annual Report of the Company and the the Company�s website.
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�ompliance �peration

The �roup has always adhered to the rule of law, adhered to the integrity culture of ��eeping promises and operating in compliance�, continuously improved the integrity and compliance management level, focused on �ey areas, �ey lin�s and �ey personnel, implemented the ��ero tolerance� policy for corruption and business ethics violations, and resolutely put an end to all forms of corruption.

�ompliance mana�ement

During the reporting period, the Company formulated and published the Wor� Plan for Promoting the Construction of Compliance Management �ystem of Re�ning � Chemical �ngineering �roup, promoted the construction of the sector compliance system, built a compliance management system with perfect system, standardi�ed business process and e�ective wor�ing mechanism, and formed a complete �three lines of defense� for compliance management and a sound mechanism featuring compliance ris� identi�cation, early warning, reporting, investigation, emergency response, disposal and accountability.

During the reporting period, the Company started to promote the construction of its compliance management system in an all-round way, and compiled the Chinese and �nglish versions of the �cheme for Comprehensively Promoting Compliance Management �ystem of �inopec �ngineering �roup and the �ntegrity and Compliance Manual of �inopec �ngineering �roup, issued the compliance management process and �ow chart and established a relatively complete compliance operation mechanism so as to minimi�e the possibility of the occurrence of major legal ris�s. At the same time, the Company also carried out compliance management training and compliance commitment signing to promote the construction of the Company�s compliance culture, thus providing strong compliance guarantee for its operation and development.

During the reporting period, the Company issued the Compliance Management �uidelines for Business Partners of �inopec �ngineering �roup, the Compliance Management �uidelines for �conomic �anctions of Foreign-related Business of �inopec �ngineering �roup and the Compliance Management �uidelines for �verseas Anti-Corruption and Commercial Bribery of �inopec �ngineering �roup, covering three business areas, i.e., business partners, foreign-related business sanctions and overseas anticorruption and commercial bribery. At the same time, the Company also carried out compliance commitment signing among employees, cultivated and established all-employee compliance culture, further strengthened the prevention and control of compliance ris�s in �ey business areas, improved the construction of the Company�s compliance management system, and consolidated the defense line of legal compliance ris�s. During the reporting period, no major legal compliance event occurred.

�nti�corr�ption mana�ement

The �roup strictly abides by the Criminal �aw of the People�s Republic of China, the Anti-�nfair Competition �aw of the People�s Republic of China, the Company �aw of the People�s Republic of China and the �nterim Regulations on the Prohibition of Commercial Bribery, as well as the local relevant laws and regulations applicable to the prevention of bribery, extortion, fraud and money laundering, and opposes all forms of corruption and unfair competition. During the reporting period, no lawsuit against corruption or bribery was �led.

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Case An anti-corruption education � warning meeting
�n �eptember 2021, the �roup
h e l d a n a n t i - c o r r u p t i o n
education and warning meeting
in the combined form of �online
+ o�ine�. Directors of the board,
management team and middle-
level managers, �ey positions
and relevant managers of some
member enterprises attended
the meeting which has been
instrumental in further building
the Company�s clean culture.
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22 2021 Environmental� Social and Governance Report

SINOPEC Engineering �Group� Co�� Ltd�

ABOUT US TOPIC MANAGEMENT ENVIRONMENT SOCIETY APPENDIX

Thirteen management regulations, including the Anti-Fraud Management Regulations of Sinopec Engineering Group and the Implementation Regulations on Integrity Risk Prevention and Control of Sinopec Engineering Group, were formulated, and the Management Regulations for the Registration of Gifts and Money in Domestic Exchanges of Sinopec Engineering Group were issued and implemented, so as to develop the awareness of integrity and self-discipline among all employees, partners, suppliers and subcontractors of the Company and effectively create a clean business environment.

Build an anti-corruption system in an all-way way

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A major supervision system featuring comprehensive supervision, special supervision, functional supervision, daily supervision and democratic supervision was established. During the reporting period, the Group closely focused on its central work on rectifying formalism bureaucracy in the field of safety and environmental protection, adhered to the idea of treating both the symptoms and root causes, continuously promoted the multi-department joint supervision and multi-matter integrated supervision model, and inspected a number of key projects.

Establish a major supervision system

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The Group continued to carry out tour inspections so as to prevent and resolve major risks, focusing on the member enterprises that have failed to fulfill the "two responsibilities", made inadequate efforts in the rectification of internal review and external inspection, accussed by letters and visits, and performed poorly in operation and management.

Carry out tour inspection

Strictly implement the Management Regulations of Sinopec Group on the Bidding and Tendering for Materials Procurement, and a reasonable management strategy for suppliers, and adopt fair, open and transparent procurement methods and standardized bidding system and process to prevent corruption; compile the Discipline for Procurement and Procurement Integrity and Self-discipline Regulations, hold fast to regulations, strengthen process supervision, and eliminate corruption; continuously optimize and improve the procurement management and operation platform to fully realize the online procurement Strengthen anti-corruption of all kinds of materials and services within the Group, and open the data of the whole among suppliers procurement process for the supervision department, so as to realize real-time audit and review, and make the procurement process more open and transparent. Set up tip-off channels, including tip-off hotline, tip-off mailbox, e-mail, etc., and receive tip-offs on violations of laws and regulations through multiple channels. At the same time, tip-offs on violations of laws and regulations through multiple channels. At the same time, we manage letters and visits so strictly that and it is strictly prohibited to withhold, destroy or disclose them without permission. It is strictly prohibited to check the information such as the notes and IP addresses of the informants without permission. For the real-name tip-off, we contact the whistleblower in an appropriate way, obtain and verify the clues without off, we contact the whistleblower in an appropriate way, obtain and verify the clues without Improve the tip-off mechanism revealing the identity of the whistleblower, and give priority to the handling and disposal of the real-name tip-off letters, and implement the "two-feedback" measure, i.e., informing the the real-name tip-off letters, and implement the "two-feedback" measure, i.e., informing the

Set up tip-off channels, including tip-off hotline, tip-off mailbox, e-mail, etc., and receive tip-offs on violations of laws and regulations through multiple channels. At the same time, tip-offs on violations of laws and regulations through multiple channels. At the same time, we manage letters and visits so strictly that and it is strictly prohibited to withhold, destroy or disclose them without permission. It is strictly prohibited to check the information such as the notes and IP addresses of the informants without permission. For the real-name tip-off, we contact the whistleblower in an appropriate way, obtain and verify the clues without off, we contact the whistleblower in an appropriate way, obtain and verify the clues without revealing the identity of the whistleblower, and give priority to the handling and disposal of the real-name tip-off letters, and implement the "two-feedback" measure, i.e., informing the the real-name tip-off letters, and implement the "two-feedback" measure, i.e., informing the real-name whistleblower of the acceptance within 15 working days from the date of receipt of the accusation, and feed back the handling results to the real-name whistleblower within 15 working days from the date of completion.

Focus on the daily education on integrity, and guide employees to learn from the cases around them. Steadily carry out the anti-corruption education month activity, and enhance the discipline awareness and regulation awareness of cadres and employees. Keep reminding all employees of maintaining integrity before holidays.

Carry out daily integrity education Carry out integrity education among directors of the board and management team

Conscientiously implement the Implementation Opinions of Sinopec on Strengthening the Supervision of the "Top Leaders" and Leading Groups. Regularly urge the directors of the board and senior management to study the relevant regulations and requirements of the state on combating corruption and advocating integrity and cases of violation of laws and regulations, and hold talks (by the Company's senior management) with the personnel in charge of departments (units) or working at key positions.

Risk Management

The Company has established a risk management and internal control system, and set up a risk management committee composed of the chairman, senior management and heads of functional departments which is responsible for the construction and operation of the Company's risk internal control management system and the decision-making of major risk management matters. Member enterprises have set up comprehensive risk management leading groups which are responsible for the soundness of the Company's risk internal control management system and the effectiveness of its risk internal control management work, formed risk prevention and management mechanism that runs through the top to the bottom and is horizontally coordinated, and regularly evaluated and monitored its effectiveness so as to protect the overall interests of the Company and its shareholders and further promote the sustainable development of the Group.

Each functional department of the Company and member enterprises identify, analyze and evaluate risk factors and risk points in a timely manner in various professional fields such as safety, quality and anti-corruption in the production and operation process, deeply integrate risk management with internal control system, QHSE (Quality, Health, Safety and Environment) management system, integrity risk prevention and control system and other management systems, put forward countermeasures and solutions, and put them in place in key points of internal control to form a comprehensive risk management system featuring goal setting, risk identification, risk evaluation, risk response, risk supervision and improvement so as to ensure that the major risk factors significantly affecting the Group can be fully covered and controlled.

During the reporting period, the Group formulated the Credit Risk Management Regulations of Sinopec Engineering Group and the Management Regulations of HSE Risk Control and Hidden Danger Investigation and Management of Sinopec Engineering Group (Trial), organized the formulation of the Promotion Plan for the Construction of Major Operational Risk Management and Control System Based on the Entire Life Cycle of Project Contracts, steadily promoted the implementation of the major operational risk management and control system, followed the problem-oriented philosophy, adhered to the principle that "risks and compliance must be managed in business management", strengthened the management and control of major risks, specified the risk management responsibility according to the annual major risks determined by the Company, defined the goals and plans on risk management and control, formulated and improved the countermeasures, and resolved and eliminated potential risks in time, thus constantly improving the risk management system and laying a solid foundation for the high-quality development of the Company.

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Risk category Countermeasure
Implement dynamic management throughout the whole process, and enable risk identification and
control to intersect the whole process of production and operation business such as design, procurement,
construction, manufacturing, and research and development;
Safety Risks Conduct the level-to-level management based on major risks, greater risks, general risks and low risks;
Evaluate the safety risks caused by extreme environment and extreme weather in the production and
operation links;
Include the risk management work in the scope of safety production performance assessment of the Group.
Establish procurement risk report and early-warning system, annual risk report, and irregular special risk
report system;
Procurement
Risks Manage the material procurement risks by classification, regularly improve and update the procurement risk list, track and monitor the risk management;
Continuously supervise, inspect and improve the effectiveness and efficiency of procurement risk
management.
Conduct risk identification, risk analysis, risk evaluation, and risk classification of the public security of
Overseas Public countries (regions) where overseas institutions and projects are located;
Safety Risks Inspect the risk assessment of overseas institutions and projects of the units dispatched by the Group on an
irregular basis, and take the inspection results as the basis for year-end performance assessment.
Collect and analyse risk events in accordance with economy, culture, laws, public security, credit standing of
Market the owner, funds and their sources, requirements of the owner, and bidding methods to determine the risk
Development level of the project;
Risks of Overseas Carry out project bidding quotation and risk management throughout the whole process of execution stage,
Projects and compile project risk assessment reports through identifying, analysing and assessing risks and dealing
with results.
Formulate the relevant systems, evaluation standards, and assessment methods for the management of legal
risks of the Group, and prepare risk management reports;
Legal Risks Establish, update and maintain the legal risk database;
Identify, evaluate, prevent and control legal risks, and implement the legal risk responsibility system for key
posts related to the business process.
Analyse, study and evaluate the probity risk information, and give "red, yellow and blue" risk early warning
for possible corruption;
Sort out the functions and powers of risk-related posts, and study the possible probity risks of the posts;
Probity Risks Propose prevention and control measures with strong pertinence, operability and practicality as per the
manifestation, cause and rating of probity risk points;
Adjust and improve the content and level of and measures for probity risks according to the self-examination,
inspection and evaluation, and in combination with the adjustment of internal control system, transformation
of operation mode, management process reengineering, and change of duties and authority.
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24 2021 Environmental, Social and Governance Report

SINOPEC Engineering (Group) Co., Ltd.

AB��T �� T�P�C MA�A��M��T ��R��M��T ��C��T� APP��D��

S��taina�ilit� �ana�ement

�ntegrating the concept of sustainable development into the development and daily operation of the enterprise, the �roup has built an ecological value system with the government, shareholders, employees, clients, partners and other sta�eholders to create a win-win situation, constantly promoting the construction of �� culture of the Company and striving to create economic, social and environmental value.

ESG mana�ement p�ilo�op��

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�uality
services
Repay the
society
�perate
according to
law
Care for
employees
Wor� with
partners
�afety �reen
development development
��
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S��taina�ilit� or�ani�ation ��tem

The �roup has continuously improved its management and organi�ation system of sustainable development and strengthened the top-level design of sustainable development. The Board of Directors of the Company shall assume the ultimate responsibility for �� governance. The �� Committee of the Board of Directors is responsible for studying and overseeing the commitment and performance of the Company�s �ey �� issues, wor�ing with other special committees and the Company�s management departments to bring �� into the categories of internal control, ris� management, strategic planning, salary incentives, and for reporting �� implementation results and major plans to the Board of Directors. Composed of �ve directors and with the chairman acting as its director, the �� Committee will hold meetings at least once a year or temporary meetings when necessary, and communicate with the Board of Directors on ��-related issues in due course. �nder the �� Committee, an �� wor�ing group has been set up to organi�e relevant departments and institutions to jointly carry out �� wor� and promote the implementation of important �� issues. �ach member enterprise puts its social responsibilities into practice within its own scope, and reports �� performance every year according to the actual needs.

During the reporting period, the �roup further improved the reporting mechanism of �� information and the mechanism of lin�ing with member enterprises, formed a standardi�ed process for collecting and reporting �� information, and organi�ed member enterprises to carry out special �� training, which e�ectively improved the �roup�s �� management level and �� information disclosure level.

S��taina�le development �overnance �tr�ct�re

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�valuate and determine the Company�s major �� ris�s, review and ma�e
decisions on major �� issues, and review the �roup�s annual �� report.
�oard o�
�irector�
�upport the Board of Directors in formulating the �roup�s ��
strategy and supervising the implementation of �� measures.
ESG �ommittee
�rgani�e and coordinate all relevant departments,
member companies, and institutions to carry out ��
wor�, and promote the implementation of important
ESG �or�in� Gro�p �� issues.
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��e �ompan� and �t� �em�er �ompanie�
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Responsible for putting social responsibilities into practice within their own scope of wor�.

Sta�e�older� comm�nication

The �roup has actively identi�ed various sta�eholders, made clear the expectations and demands of 11 categories of sta�eholders through effective communication, and turned the relevant demands into sustainable development actions and plans, and e�ectively strengthened its own capacity building so as to ensure that the development of the enterprise can be more fruitful and bene�t more groups.

26 2021 Environmental� Social and Governance Report

2�

SINOPEC Engineering �Group� Co�� Ltd�

AB��T �� T�P�C MA�A��M��T ��R��M��T ��C��T� APP��D��

�emand� o� Sta�e�older� and Re�pon�e

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Sta�e�older� E�pectation� and �ppeal� �omm�nication and Re�pon�e
�erve national development strategy
Actively implement national development strategy
�overnment Abide by laws
Carry out compliance management in accordance
and Regulatory Preserve and increase the value of state-
with law and realise stable operation growth
Authorities owned assets
Constantly increase tax contribution
Pay taxes in accordance with law
Be honest and ful�l agreements Carefully ful�l contracts
Business Partners Prevent and control ris�s �trengthen operation ris�s management
Achieve win-win cooperation �trengthen strategic cooperation
Carry out stable operation and improve operation
performance
�atisfactory return
�nvestors/ �trict ris�s control �tandardise corporate governance and carry out
operation in accordance with law
�hareholders �ood credit rating
�mplement leading investor relationship
�mooth information communication management
�eep ade�uate timely information communication
Benchmar�ing projects in terms of both
safety and �uality Promote essential safety management
�xperts
�reen and low carbon development �elp construct green factories
Promotion of industrial upgrading
Be honest and ful�l agreements
Publicity activities
�nformation transparency
Clients visits
Clients Privacy protection
�uestionnaire survey
�xcellent products
�nteraction through o�cial website, WeChat
�uality services
Fair employment policy
Protection of employee�s rights and
interests Complete compensation and incentives
mechanism
Co-growth
�mployees All-round employee training
�uarantee of compensation and bene�t
Diversi�ed occupational development platform
�ealth and safety
�ealthy wor�ing environment
Care for employees
Considerate humanistic care
�ood cooperation relationship
Win-win cooperation �mooth communication channels
�upply Chain Co-development �xecution of cooperative agreement in a careful
Resources sharing manner
�hared prospective study
�nvironmental protection
�trengthen energy conservation and emission
�reenhouse gas emission reduction
�nvironment Discharge of waste
�nnovate environmental protection technologies
��ective utilisation of resources
�mplement �reen �nterprise Action Plan
�atural resources protection
Community support and guidance
Promote local economic development
Communication with community
�nfrastructure construction
Poverty alleviation
Community Promotion of employment
Charitable donation
Charity
�olunteer activities
Participation of community
Public open day
�penness and transparency of enterprise Actively carry out news report and publicity
Public and Media information �eep smooth communication channels with public
Maintain good public relationship and media
�� support and cooperation �upport �� activities
��
�armonious cooperation �trengthen communication with ��
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�denti�cation o� important i��e�

The �roup assesses the important environmental, social and governance matters which related to our business from the two aspects of the importance of such topics to the sta�eholders and to the �roup respectively based on communication with sta�eholders and the actual situation of the Company in accordance with the Appendix 27 �nvironmental, �ocial and �overnance Reporting �uide of the �isting Rules and other international standards and form a matrix of �ey topics after screening to serve as the basis of the Company�s �� focuses and disclosure.

�denti�cation and ��e�tionnaire in��ir� ��e�tionnaire anal��i� and �creenin� o� topic� compre�en�ive a��e��ment
�xperts identify and screen A total of 130 valid A matrix of important 20 topics to be used for �uestionnaires were topics is obtained based on
sta�eholders�survey through collected in the the opinions of experts and
their analysis and judgment in sta�eholders� survey. relevant personnel after line with the industry reports a priority ran�ing of the based on the domestic and �ey topics for each group overseas industrial policies of sta�eholders as per the 130
and standards and the result of the �uestionnaire.
concerns of sta�eholders.

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� �mprove the �roup�s �� responsibility
management mechanism
�mportant issues Core issues
� �mprove the �roup�s �� performance in
administrative o�ce
�igh
� �mprove the �roup�s �� performance in
engineering business
� Respond to ris�s of climate change
�
� �mission management
� � � �nergy consumption and resource use
� � management
� � Protection of environment and natural
� � � resources
� ��ual employment and standardi�ed
� employment
�
��afeguard the health and safety of
�
employees
�Pay attention to sta� training and
�
� development
�
� ��nsure employee remuneration and
� � bene�ts
��nvironmental and social ris�
management of suppliers
��ive priority to green products in
� procurement
�Fair procurement
�Focus on innovation and development
��nsure engineering �uality
�Anti-corruption supervision and
management mechanism
�Anti-corruption warning and education
��upport rural revitali�ation
�ow �mportance to the Company �igh
�Participate in social services
�mportance to sta�eholders
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28 2021 Environmental� Social and Governance Report

2�

SINOPEC Engineering �Group� Co�� Ltd�

Adhering to the concept of a community of life for man and nature, the �roup is committed to the high-�uality development of pro-ecology, green and low carbon, accelerating the deepening of the action plan for green enterprises, actively responding to climate change, ta�ing technological innovation as the guide, focusing on energy conservation and emission reduction, and giving priority to ecological protection, so as to help build a clean and beautiful world of green mountains, clear water and fresh air.

�D�s issues that this chapter responds to

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Environment 02

32 �dvanced �ec�nolo��led
3� Strict Environmental �ana�ement
3� �edicate �lean Ener��
36 Green Enterpri�e �nitiative
3� �ractice� Related to Ener�� on�ervation and Emi��ion Red�ction
�� io�diver�it� �rotection
�6 �ddre�� limate ��an�e

AB��T �� T�P�C MA�A��M��T ��R��M��T ��C��T� APP��D��

�dvanced �ec�nolo��led

Hi�torical �onor

��e �pecial pri�e o� ��ina�� ational Science and �ec�nolo�� ro�re�� ard

The �roup will continue to strengthen scientific and technological innovation, build green and efficient productivity with advanced technology, and reali�e green and clean high-�uality development, so that each of our wor�s is endowed with the high-�uality genes of green, e�cient and low-carbon development.

�or more detail� o� �cienti�c and tec�nolo�ical innovation, plea�e re�er to �opic � ��ool �orce� and drive �reen development t�ro�� innovation� in t�i� report �rom pa�e 8 to �0.

The million-ton-level ethylene complete-set technology won t�e �r�t pri�e o� t�e ��ina �ational Science and �ec�nolo�� ro�re�� ard

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Technological innovation contributed to the Beijing �lympic Winter �ames

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The technology of ma�ing ethylene The world�s largest 10,000-tonthrough direct crac�ing of crude oil has level photovoltaic green hydrogen The �rst domestic �plastic gold� been successfully tested for the �rst time demonstration project was produced

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2015 2012
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1985
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��e �pecial pri�e o� ��ina�� ational Science and �ec�nolo�� ro�re�� ard

��e �r�t pri�e o� ��ina�� ational Science and �ec�nolo�� ro�re�� ard

�igh-e�ciency and environmentally friendly Paraxylene�P�� technology

Complex raw material complete sets technology for million tons grade of steam crac�ing to ethylene �arge-scale Moderni�ed Coal Chemical �ndustry for Coal-to-�i�uid and/or �le�n Technology

Application of gas �eld development technology in super-large ultra-deep high sulfur gas �eld

�ew technology of butadiene rubber industrial production

Design, manufacture and maintenance of critical pressure vessels under extreme conditions �aphtha catalytic reforming technology Complete set of technology for residual oil hydrotreating ��-R�T� Ring-pipe process for polypropylene technology Application of energy-saving transformation technology for Crude distillation units R�-1 �ydro�ning Catalyst and Process

��e �r�t pri�e o� ��ina�� ational �ec�nolo�ical �nvention ��ard

Methanol to low carbon ole�ns �DMT�� technology

��e �econd pri�e o� ��ina�� ational

�ec�nolo�ical �nvention ��ard

��e Special pri�e o� �a�or �ec�nical E��ipment o� t�e State �o�ncil

Application of new catalytic materials of fully crystalline composite pore molecular sieves

�ew technology for process emission reduction of �ne particle pollutants in major chemical plants

Technical Development of ��-1 �team Crac�ing Furnace

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Strict Environmental �ana�ement

Adhering to the road of green and low-carbon development, the �roup has constantly improved its environmental management system, comprehensively identified and underta�en relevant laws, regulations, standards and norms such as ecological protection, energy conservation, water conservation, low carbon and environmental protection, and formulated system documents that comply with the realities and meet the actual re�uirements, including environmental management systems and environmental technology systems.

The �roup has set up the �� ealth, �afety and �nvironment� Management Committee, with the chairman acting as its team leader, and one director, four senior executives and the top management of each member enterprise as its team members. As the decision-ma�ing organ of environmental protection policies, the �� Management Committee is responsible for examining and approving the Company�s environmental development plan and relevant rules and regulations, coordinating and solving environmental problems, and supervising the ful�llment of environmental protection duties.

�trengthen daily supervision and inspection, set up an environmental supervision group, adhere to the combination of �Four �os and Two Directs� and �special supervision� on a daily basis, strengthen on-site supervision and inspection, and focus on strengthening supervision and inspection and �loo�-bac�� on the building of green construction sites and the implementation of pollution prevention and control measures through supervision and inspection, assessment and noti�cation, and evaluation of the �rst and the best, so as to achieve closed-loop management and ma�e continuous improvement.

Carry out system audit, and formulate the Detailed Rules of �inopec �ngineering �roup for �nvironmental Audit of �� ystem, covering the whole process of leadership, commitment and responsibility, planning, support, operation, performance evaluation and improvement. Conduct system audit among member enterprises, �nd out the gap and wea� part between the environmental management of member enterprises and �inopec �roup�s environmental management re�uirements, and comprehensively evaluate the operation of the environmental management system so as to ensure the e�ective operation of the system and improve the �roup�s environmental management level.

We are active in encouraging member enterprises to carry out �� environmental management system certification. As of the reporting date, 11 member companies of the �roup have passed the environmental management system certi�cation.

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member companies of the �roup have passed the environmental management system certi�cation 11[ �]

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�edicate �lean Ener��

Developing clean energy is the only way to achieving the goal of �carbon pea�ing and carbon neutrality�. The �roup is committed to continuously promoting the development of new energy and strengthening the integrated innovation and application of new energy.

H�dro�en ener��

�ydrogen energy is one of the �ey paths for the transformation of the global energy structure in the clean and low-carbon direction. �inopec �ngineering �ncorporation, a member company of the �roup, planned and implemented a number of hydrogen production projects based on solar power, wind power and electric power in �rdos, �lan�ab, Dalian, obtained technical reserves in hydrogen production, hydrogen storage, hydrogen refueling stations and other fields, and participated in the engineering technology development and design of three hydrogen refueling stations that would serve the Winter �lympics, with a daily supply of �000�g of hydrogen, including 1500�g per day at 35MPa and 2500�g per day at 70MPa, which is the �rst of its �ind in China. At the same time, it participated in the formulation of a number of hydrogen energy-related standards, greatly promoting the construction of �inopec �roup�s hydrogen energy industry chain and contributed to the high-�uality development of China�s hydrogen energy industry.

The �injiang �u�a �reen �ydrogen Demonstration Project designed by �uang�hou �ngineering Co., �td., a member company of the �roup, is the world�s largest photovoltaic green hydrogen production project under construction, China�s �rst large-scale project of hydrogen production directly by photovoltaic power generation and the �rst typical demonstration project of �inopec �roup that runs through the whole process of green hydrogen production and utili�ation, including solar power generation, green electricity transmission, green electricity hydrogen production, hydrogen storage, hydrogen transportation, green hydrogen refining, etc. The project reduces carbon dioxide emissions by �85,000 tons per year, which has e�ectively promoted the development of green hydrogen energy in �injiang.

�hanghai �ngineering Co., �td., a member company of the �roup, continues to ma�e investment and actively see�s technical cooperation, focusing on the development of large-scale hydrogen production technology from electroly�ed water coupled with renewable energy. �o far, it has completed the development of �ey e�uipment, safety control and other engineering technologies and wor�ed out a distinctive green hydrogen solution, thus laying a solid foundation for underta�ing engineering projects in the �eld of green hydrogen.

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The �injiang �u�a �reen �ydrogen Demonstration Project reduces carbon dioxide emissions by

~~4~~ 85,000 tons per year wind and solar green electricity green electricity hydrogen hydrogen green hydrogen power generation transmission hydrogen production storage transportation re�ning

��G

�� li�uefied natural gas� is a �ind of clean and efficient energy, and an important energy product for optimi�ing the energy consumption structure. The �roup adheres to the technology-led philosophy, possessing a series of patents and proprietary technologies in the �eld of �� construction. While continuously improving its project construction ability, the �roup is committed to contributing more clean energy to the society. During the reporting period, a series of projects represented by Tianjin �� were completed and put into use, lending strong support to the winter supply in �orth China.

During the reporting period, the �roup undertoo� and built a number of �� receiving stations and storage tan� projects including Wen�hou ��, Tianjin �� Phase ��, and �handong �� Phase �� and Phase ��. Among them, �handong �� Phase �� project, led by �inopec �ngineering �ncorporation, a member company of the �roup, has a storage tan� capacity of 270,000 cubic meters, which is currently the largest �� storage tan� designed and built in China and the �rst large-volume low-temperature storage tan� in China.

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Green Enterpri�e �nitiative

The �roup has actively carried out the ��reen �nterprise �nitiative�, fully implementing the concept of green development, and promoting energy conservation and emission reduction. Regarding the cultivation of green enterprises as one of its �ey tas�s of the year, the �roup has de�ned the annual �ey objectives and tas�s of the �reen �nterprise �nitiative, �nding its wea� points� carrying out green enterprise cultivation training to improve the professional �uality of environmental professionals� and building green construction sites and organi�ing personnel for acceptance inspection of. During the reporting period, a total of 8 member enterprises were awarded the title of ��reen �nterprises�.

�tarting with the establishment of green construction sites, the �roup has continued to carry out the prevention and control of solid waste, air pollution, water pollution and noise pollution and radioactive pollution. �reen construction sites are subject to three levels of management and control, i.e., monthly self-assessment, assessment by member enterprises, and random inspection by the Company for verifying the assessment results. The establishment of green construction sites has progressed steadily, and various environmental protection wor� has e�ectively been implemented. During the reporting period, the �roup established a total of 72 green construction sites.

Goal o� t�e Green Enterpri�e �nitiative

2022 2023 �ercenta�e o� �ercenta�e o� e�ta�li��ed �reen 80% e�ta�li��ed �reen con�tr�ction �ite� con�tr�ction �ite�

90%

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�ontent �ix 100�: 100� enclosure around the construction site, 100� coverage of bare soil and material stac�, 100� washing of vehicles in and out, 100� hardening of roads on construction site, 100� wet process for earth-roc� excavation and 100� airtight transportation of slag cars�
Reduced discharge of solid wastes: 100� compliance disposal rate of general solid wastes and ha�ardous wastes�
Compliance treatment or standardi�ed discharge of production and domestic wastewater�

Build green and digital factories to reach the domestic first-class environmental protection level in the petrochemical engineering industry and build an environmental protection benchmar�ing enterprise of ��P�C.

�stablish green construction site

Case

�inopec Fifth Construction Co., �td., a member company of the �roup, has persisted in green production, accumulated experience in green construction, conducted environmental planning of early projects, duly identified and eliminated potential safety ha�ards in project processes, and intensified sewage treatment, to ensure that construction wastewater discharge is up to standards. The company has provided green services, intensified solid waste and construction waste disposal, and inspected the separate collection, mar�ing, transport and disposal of common solid waster, ha�ardous waste, construction waste and domestic waste, to ensure that waste is disposed in accordance with laws and regulations. The company has fostered a green culture, integrated green culture building into corporate culture building, and fully leveraged its medium to spread the philosophy of green development throughout the company.

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�ew energy sprin�ling � de-dusting vehicle

�reen soilless construction

�ractice� Related to Ener�� on�ervation and Emi��ion Red�ction

Emi��ion mana�ement

The �roup strictly abides by China�s national and local laws and regulations such as the �aw of the People�s Republic of China on �nvironmental Protection, the �aw of the People�s Republic of China on Prevention of Air Pollution, the �aw of the People�s Republic of China on Prevention of Water Pollution, the �aw of the People�s Republic of China on Prevention and Control of �nvironmental Pollution by �olid Waste, the �aw of the People�s Republic of China on Prevention of �nvironmental �oise Pollution as well as other environmental laws and regulations of countries where the project is located, such as the �eneral �nvironmental �aw and �nvironmental Protection �tandards issued by the �ingdom of �audi Arabia.

During the reporting period, the �nvironmental Protection Management �uide for Prefabrication �ard of �inopec �ngineering �roup �Trial� and the �nvironmental Protection Management �uide for �olid Waste of �inopec �ngineering �roup �Trial� were issued to guide the construction project sites to carry out the wor� concerning dust and solid waste discharge according to laws and regulations.

During the reporting period, no major lawsuits were filed against the �roup due to environmental violations and no penalties imposed.

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Goal o� o�t�o�rced di�po�al o� Goal o� �reen�o��e �a� emi��ion
Goal o� �a�te emi��ion red�ction �a�ardo�� a�te red�ction
During the �1�th Five-�ear Plan� period, During the �1�th Five-�ear Plan� period, During the �1�th Five-�ear Plan�
the discharge amount of harmless the outsourced disposal of ha�ardous period, the intensity of greenhouse gas
wastes with revenue of RMB 100 million wastes with revenue of RMB 100 million emission reduction decreased by 5.7�.
was reduced by 11�. decreased by 8�.
11% 8% 5.7%
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��pe o� emi��ion Emi��ion red�ction mea��re�
Ta�e solid waste management as the focus of the daily wor� of environmental supervision, strengthen
the e�ectiveness of corrective measures and establish a long-term management and control mechanism
�a�te� to avoid the re-occurrence of similar problems, aiming at the outstanding problems such as open
storage of ha�ardous wastes, mixed storage of solid wastes and ha�ardous wastes, random disposal of
construction wastes, incomplete and nonstandard ledgers, and non-standardi�ed labeling.
�trengthen the management of dust prevention and control at the project site, purify and discharge
��Cs and welding fume and adopt low ��Cs coatings for open-air painting�
�ir
poll�tant� �n order to ensure the air �uality during the Winter �lympics, safeguard measures were formulated
for projects in �ey areas, and safeguard measures and emergency plans were implemented in strict
accordance with di�erent periods and �ones.
All waste water from chemical cleaning and other operations at the project site was recovered and
�a�te �ater disposed of according to law, and the sewage from construction projects was discharged in a uni�ed
manner according to the location and manner speci�ed by the proprietor.
Ma�e reasonable layout of the construction site and reasonable arrangement of operation time�
Adopt low-noise and environment-friendly construction machines and tools, and ta�e effective
�oi�e measures to reduce the noise in the construction process. �nits involved in noise at the factory
boundary should carry out noise monitoring as re�uired to ensure that the noise at the factory
boundary meets the standards.
�mplement the radiation safety license filing system according to the re�uirements of the state,
Radioactive
strengthen the management of storage and use, and strictly manage the whole process of radioactive
poll�tion
wastes so as to ensure that no environmental emergencies of radioactive pollution occur.
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��e �eneral in�ormation o� emi��ion �� t�e Gro�p in t�e Reportin� �eriod i� li�ted a� �ollo��

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��pe o� Emi��ion �nit 202� 2020 20��
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Total volume of greenhouse gas emission	Total volume of greenhouse gas emission	Total volume of greenhouse gas emission	Ton of C�2e	111,873.76	115,798.39	179,010.08
Range � total volume of greenhouse gas emission			Ton of C�2e	�6,8�8.89	52,728.27	116,�39.97
Range �� total volume of greenhouse emission	gas		Ton of C�2e	65,02�.87	63,070.12	62,570.11
�reenhouse gas emission per unit of revenue			Ton of C�2e/RMB �undred Million	193.69	221.19	3�2.53
�utput of ha�ardous wastes 2			Ton	982.6�	879.10	1,336.62
�mission density of ha�ardous wastes		3	Ton/RMB �undred Million	1.70	1.68	2.56
Treatment rate of ha�ardous wastes			�	100	100	100
�utput of harmless wastes �			Ton	51,31�.78	62,267.67	6�,�05.38
�mission density of harmless wastes	3		Ton/RMB �undred Million	88.8�	118.9�	123.2�
�mission density of harmless wastes			�	100	100	100
Total volume of wastewater 5			Ton	2,50�,7�3.07	�,338,861.09	3,387,082.81
Density of wastewater 3			Ton/RMB �undred Million	�,336.�7	8,287.70	6,�81.09

�ote: 1. �reenhouse gas emissions are calculated according to the �reenhouse �as Accounting �ystem-Accounting and Reporting �tandards for �nterprises issued by the World Resources �nstitute �WR�� and the World Business Council for �ustainable Development �WBC�D�, the Fifth Assessment Report 2013 of the �ntergovernmental Panel on Climate Change ��PCC� and the �uidelines for Accounting Approaches and Reporting of �reenhouse �as �missions for �ndustrial �nterprises and �nterprises of �ther �ndustries �Trial�� 2. the amount of ha�ardous wastes produced is calculated according to the statistical ledger of the production system of the �roup� 3.density data is calculated by using the method of dividing revenue by production. �. harmless wastes are mainly waste paper, scrap metal, wastes from temporary demolition and domestic garbage, of which the total discharge of domestic garbage is calculated according to 0.8�g/person/day, and the rest harmless wastes are proportionally converted according to the actual situation� during the reporting period, we reasonably planned the reuse of excavated earth in the project, e�ectively reducing the amount of residue.5.during the reporting period, the company strengthened the management of pressure test water during project implementation, effectively reducing the discharge of sewage.

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Case Clean technologies assist pollutant emission reduction from the source

A series of advanced technologies of �inopec �ngineering �ncorporation, a member company of the �roup, represented by � Zorb �FCC �asoline Adsorbing Desulfuri�ation� technology and high-efficiency and environment-friendly Paraxylene complete-set technology have achieved clean process, pollutant emission reduction and environmental friendliness from the source, providing a solid guarantee for the whole petrochemical industry chain to reali�e the green and environmental protection goal. At present, the total processing capacity of � Zorb units built in China exceeds 52.3 million tons per year. According to calculation, this technology helps reduce ��2 emissions by more than 30,000 tons and C�2 emissions by about 2.1 million tons every year. The second set of green Paraxylene technology has been successfully applied at �ainan Refining and Chemical Co., �td. in China and exported to �audi Arabia, �ndonesia, Belarus and other countries. At the same time, the third set of high-efficiency green aromatic hydrocarbon technology has been constructed at �iujiang Petrochemical Co., �td. �t is reported that a single set of unit can reduce the solid waste discharge by about 2,000 tons per year.

Case Continue to innovate in the technology of ��ero discharge� of sewage to protect the environment

The Fischer-Tropsch synthesis reaction process of the indirect coal li�uefaction project produces a large amount of synthetic water with complex components which is di�cult to treat. The resource utili�ation of synthetic water has become one of the main bottlenec�s restricting the development of indirect coal li�uefaction technology. �inopec �ngineering �ncorporation, a member company of the �roup, after underta�ing the national �ey R�D plan, has developed the technological route of �vapori�ation membrane separation and concentration + separation of the wall tower and extractive distillation + acidresistant biotransformation + biochemical coupling treatment�, which has been veri�ed by �eld pilot test and is expected to help reali�e ��ero discharge� of sewage.

Waste al�ali oxidation is the �ey lin� of sewage treatment. This technology has long been monopoli�ed by foreign countries, becoming one of the �bottlenec�� technologies in China�s environmental �eld. �inopec �ngineering �ncorporation, a member company of the �roup, too� the lead in carrying out independent research and development and finally achieved major brea�throughs and completed the engineering process, brea�ing the monopoly of foreign patent dealers in large-scale nonbiological waste al�ali oxidation process and reali�ing the locali�ation and industriali�ation of e�uipment for the �rst time.
The effective treatment and resource utili�ation of waste lye discharged from ethylene production process is a research hotspot in the �eld of sewage treatment. �inopec �ngineering �ncorporation, a member company of the �roup, and fraternal companies have wor�ed together to tac�le �ey problems, and independently developed the technology pac�age of free�ing and crystalli�ing ethylene waste lye. This technology with independent intellectual property rights is expected to help reali�e resource recovery and �ero emission of ethylene waste lye.
Zhong�an coal chemical integration project is located on the ban� of �uaihe River, and its environmental standard is extremely strict. The commissioning of its saline sewage treatment device has become the �ey lin� a�ecting the normal start-up and operation of the whole plant. �inopec �ngineering �ncorporation, a member company of the �roup, too� the lead in carrying out innovative research and development of the �complete set of processes and technologies for �ero discharge of high-content salt water in �inopec �roup�s coal chemical sector�, which solved the problem of �ero discharge treatment of high-content salt water and utili�ation of salt water resources for the �rst time in China. The complete set of technologies have been successfully applied in Zhong�an joint coal chemical engineering project, and a 360-ton-per-hour high-content salt waste-water �ero-discharge device has been built. The device has successfully achieved the overall sewage l recovery rate of about 98�, the total �uality salt and nitrate recovery rate of about 80�, and the annual direct and indirect benefits have reached RMB 97 million. This technology has filled in the blan� in China in the field of the complete-set technology of �ero discharge of high-content salt sewage based on �uality separation and salt separation.

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Zhong�an �ero discharge of high-content salt water project

Fischer-Tropsch synthesis water-alcohol separation tower

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Case

The ultra-low emission green solution of petrochemical wastewater won the �ino-French Teamwor� �nnovation Award

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�uang�hou �ngineering Co., �td., a member company of the �roup, wor�ed with France-based �ue� �nvironment and �henghong �roup to develop a green solution for ultra-low emission of petrochemical wastewater. The solution adopted the concept of �treating waste with waste� to achieve recycling, energy conservation and emission reduction, fully demonstrating the concept of resource utili�ation and environmental protection and biodiversity through technological innovation. �t will provide clients with an economical and reliable solution for the whole process of ultra-low emission of petrochemical wastewater. The wastewater reuse rate has been the highest of existing petrochemical projects in China. After the project is put into operation, it is estimated that the annual carbon dioxide emission will be reduced by 8,000 tons, and the operating cost saved by RMB 20 million. With its outstanding performance in energy conservation and emission reduction, this solution won the ��nnovation Pioneering Award� issued by the French-Chinese Commission in 2021.

Case Committed to technical development in the �eld of new materials with a view to building a brand of degradable materials

Focusing on the field of new materials, the �roup has made brea�throughs in the large scale and full locali�ation of degradable materials, and built a distinctive brand of degradable materials through continuous development of various �inds of production technologies, as well as technical extension and layout in both upstream and downstream industrial chains.

�hanghai �ngineering Co., �td., a member company of the �roup, integrated the technology of ma�ing ethylene glycol from coal with independent intellectual property rights and the co-developed polyglycolic acid technology, and undertoo� the engineering business of �ubei�s chemical fertili�er P�A �polyglycolic acid, a degradable material with uni�ue properties� project and �ui�hou�s �enghua P�A project, and synthesi�ed high value-added degradable engineering plastics based on coal, promoting the technical development and industrial demonstration of clean and e�cient use of coal for ma�ing high value-added products, and the development and application of degradable plastics. The engineering design of Tianjin Petrochemical�s 100,000-ton/year PB�T �biodegradable polyester material� project and �ainan Re�ning � Chemical�s 60,000ton/year PB�T project has opened up the mar�et of biodegradable materials while improving the application level of the production technology of biodegradable materials.

Case Phosphogypsum treatment technology reali�es �treating waste with waste�

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With the rapid development of China�s phosphorus chemical industry, the �uantity of by-product phosphogypsum has become enormous, which has caused an increasingly adverse impact on the environment. C�2 emission reduction and phosphogypsum solid waste treatment are major environmental problems, posing a severe challenge to the industrial economy, especially the energy industry.

�anjing �ngineering Co., �td., a member company of the �roup, developed the technology of directly minerali�ing phosphogypsum with low concentration of C�2 to produce ammonium sulfate and calcium carbonate, and directly minerali�ed C�2 from tail gas into solid waste phosphogypsum, calcium carbonate and ammonium sulfate as by-products. At the same time, it has solved the environmental problems of C�2 emission and phosphogypsum solid waste, reali�ing the technical route of �treating waste with waste� and circular economy, which is conducive to the reduction and resource utili�ation of by-product phosphogypsum, and is of practical significance to the sustainable and healthy development of phosphorus chemical industry.

Complete-set ��Cs treatment technology with high �ux and low temperature plasma has been applied industrially

Case

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��Cs ��olatile �rganic Compounds� are the �ey and a difficult problem of waste gas treatment in petrochemical industry. �uang�hou �ngineering Co., �td. a member company of the �roup, participated in the research and development of the complete-set high-�ux plasma ��Cs treatment technology which was �rst applied to the treatment of organic waste gas in �ingmen Petrochemical Wastewater Treatment �ard. The si�e of waste gas treatment reached 12,000 �m3/h, which significantly improved the treatment efficiency of low-temperature plasma ��Cs treatment technology. After three months of stable operation, the emission of ��Cs waste gas met the standard, which e�ectively solved the problem of large-�ux and low-concentration ��Cs treatment, becoming a �sharp weapon� for efficiently completing the tas� of low-concentration ��Cs treatment and improving the �uality of atmospheric environment.

Case �mplement the factory manufacturing concept to reduce pollutant emissions

�inopec Fourth Construction Co., �td., a member company of the �roup, is a firm believer in the concept of factory manufacturing. Through the investigation at the prefabricated sites of the projects around the Beijing-Tianjin-�ebei region, it has built a centrali�ed manufacturing base and e�uipped it with environmental treatment devices to ensure that the emission meets the standards, e�ectively solving the problem of environmental pollution caused by open-air welding and spraying. �ince the factory manufacturing base resumed production in February 2020, it has underta�en the shot blasting anticorrosion construction of many large-scale projects such as pipeline, section bar, plate, pipe �ttings, etc. After the pollution control facilities are put into operation, the emissions of pollutants such as particulate matter, xylene and ��Cs have all been reduced to varying degrees.

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�nit: t/a Particulate matter �ylene ��Cs
20
1�.37
15
10.02
10
6.57
5
2.17 1.7
1.1
0
Before treatment After treatment
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��e o� re�o�rce�

The �roup too� the initiative to implement the �aw of the People�s Republic of China on Conserving �nergy, �aw of the People�s Republic of China on Promoting Clean Production, �rdinance on Civil-Building �nergy Conservation and relevant policies on energy conservation to exploit the advantages of the �roup�s whole industrial chain in engineering construction. �n the planning, design, consultation, construction and commissioning services for petrochemical engineering, the �roup promoted the research, development and application of new energy, new technology and new e�uipment and was dedicated to building green projects and green factories to realise energy conservation and cost reduction. Meanwhile, the �roup actively optimised the energy consumption structure, eliminated the use of coal-�red boilers, and promoted clean and e�cient gas-�red boilers, thus improving the energy consumption e�ciency and reducing the waste of water resources.

Ener�� con�ervation �oal

�ater con�ervation �oal

�mprove the efficiency of use of resources, and reduce the consumption of major energy resources through the research � development and application of new energy, new technologies and new e�uipment.

�mprove the efficiency of use of water, and reduce the per-capita consumption of water resources.

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Fourth Construction Co., �td. launching the �nitiative of ��iving Priority to �aving in �reen Development�

�inopec �ngineering �ncorporation carrying out low-temperature heat investigation and implementing the overall plan at �anshan Chemical Plant

Green de�i�n

Green con�tr�ction

�stablish a sound management mechanism of energy resources at the construction site, and standardi�e the use �uantity of materials and the scope of transportation to save resources�

Promote the green design concept, tap the resource recycling potential from the whole process flow in the design stage of the construction project, adopt new process, new technology and new e�uipment based on the principle of �the optimal energy consumption�, reali�e the waste heat recovery and the cascaded utili�ation of residual pressure, maximi�e the utili�ation rate of resources and energy, and reduce the consumption of water, electricity and other resources�

�mplement recycling, such as unpolluted industrial waste water�

Repair the old and utili�e the waste, reduce transshipment, and reuse the temporary facilities on the construction site, such as material warehouses, tool boxes and board rooms�

Carry out technical transformation of old devices to improve the energysaving and consumption-reducing capacity of in-service devices�

�elect environment-friendly and e�cient catalysts to improve the e�ciency of reaction�

��ectively dispose of recyclable materials, such as scrap metal, wood, plastic, cardboard, etc.�

Design supporting solid waste reduction devices and waste water and waste gas treatment devices to reduce the discharge of �three wastes� from the source�

�ive priority to energy-saving, e�cient and environmentfriendly construction facilities and machines recommended by the state and industry�

Promote the engineering application of the complete-set �ero emission technology of waste water and significantly reduce the consumption of fresh water�

�liminate bac�ward facilities and e�uipment on schedule, and maintain energy-consuming e�uipment and machines in time�

�tili�e renewable resources to develop and optimi�e the industriali�ed production technology of fuel ethanol to reduce production costs and improve competitiveness and economical e�ciency.

Call on subcontractors to participate in the �Four�aving� activity, i.e., saving energy, saving water, saving materials and saving land.

��rin� t�e reportin� period, t�e Gro�p�� re�o�rce con��mption per�ormance �a� li�ted a� �ollo��

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Re�o�rce ��pe 1 �nit 202� 2020 20��
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Diesel	Ton	9,�25.57	10,566.18	20,737.2�
�asoline	Ton	3,337.56	3,032.37	7,118.00
�atural gas	M 3	�55,31�.89	325,�63.98	�99,126.��
�i�ue�ed petroleum gas	Ton	337.�2	1,711.38	5,681.15
Acetylene	Ton	2,�73.22	1,�23.87	3,250.89
Propane	Ton	30�.00	132.35	77.�1
�et purchased electricity	MWh	95,2�7.97	92,107.93	95,976.68
�et purchased heat or steam	M��	63,833.22	63,830.09	26,768.75
�ntegrated energy consumption	Ton of standard coal	51,006.33	�7,360.�5	87,727.35
�ntegrated energy consumption per unit of revenue	Ton of standard coal/ RMB �undred Million	88.31	90.�6	167.86
Total consumption of water resources	Ton	6,226,0�7.�9	5,129,561.71	3,827,827.58
�ntensity of water resources consumption	Ton/RMB �undred Million	10,779.17	9,798.03	7,32�.��

�ote: 1. Factors such as the location of the project department, prefabrication yard and manufacturing plant, mar�et supply and project increase or decrease will lead to changes in energy consumption. During the reporting period, the company contracted and completed several tan� farm projects, which increased gas consumption� the comprehensive energy consumption data in the table were calculated based on the �eneral Rule for Calculation of Comprehensive �nergy Consumption� density- related data in the table were calculated by the consumption divided by the operating revenue� engineering projects the �roup delivered to clients did not involve the use of pac�aging materials.

Green li�e

Green o�ce

Advocate green travel, standardi�e bus management, and advocate the concept of the multi-use of one vehicle�

�se water-saving appliances to avoid unnecessary waste�

Turn o� the lights and computers before leaving, and set the air conditioning temperature properly�

Advocate the �Plate-clearing Campaign� to save food resources�

Recycle the cooling capacity and heat of air conditioning in o�ce areas�

Carry out voluntary tree-planting activities to strengthen employees�eco-environmental awareness of �planting trees, protecting trees and loving a green life��

Carry out energy-saving renovation of lighting �xtures in o�ce areas�

Promote the application of �A system�

Cultivate green culture, carry out green theme learning activities, hold environment-related �ui��es, and publici�e energy conservation and carbon reduction through banners to reduce carbon emissions.

Promote the application of teleconferencing system�

Advocate the use of durable goods and double-sided printing, and minimi�e the purchase of disposable products.

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Carry out energy utili�ation analysis and improve the e�ciency of resource utili�ation

Case

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The �roup is dedicated to doing a good job in energy utili�ation analysis, optimi�ing process schemes and serving enterprises in saving energy and water. During the reporting period, �hanghai �ngineering Co., �td., a member company of the �roup, completed the low-temperature waste heat utili�ation project of the new ethylene oxide unit of Maoming Petrochemical, which reduced the energy consumption by 37.8�g standard oil per hour for the new ethylene oxide unit and 1039.5�g standard oil per hour for the Water Affairs Department, with a total reduction of 1,077.3 standard oil per hour� the energy-saving scheme of �hanghai Petrochemical Plant was completed and implemented in two phases. �n Phase �, the steam consumption was saved by 121,100 tons per year by systematically ta�ing into consideration the design of utili�ation of low-temperature heat, and the maximum heat recovery e�ciency of low-temperature heat in the aromatic hydrocarbon unit was reali�ed. �n Phase ��, �t is expected that �8.8MW of low-temperature heat can be recovered.

reduced standard oil per hour for the Water A�airs Department 1039.5kg

reduced the energy consumption by standard oil per hour for the new epoxy unit

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37.8kg

�io�diver�it� �rotection

The �roup strictly abides by the �nvironmental Protection �aw of the People�s Republic of China and relevant environmental laws and regulations of the operation place of the project, actively performs its environmental responsibilities at home and abroad, strictly adheres to the ecological red line and the environmental safety bottom line, ta�es into full consideration the possible impacts on biodiversity and natural resources during the project construction process, ta�es e�ective measures to implement ecological protection and soil and water conservation, and strengthens vegetation protection and restoration so as to minimi�e the impacts on the project operation place. At the same time, the �roup also ma�es great e�orts to innovate ecological restoration technology and promote soil restoration and biodiversity protection to ma�e its due contributions to global ecological governance.

Carry out the identification of environmental factors and impact assessment. �trictly abide by the national ecological red line system, the policy of intensive and economical use of land and marine functional �oning, identify environmental factors and evaluate the impact of construction areas, office areas and other activity areas, and ensure that the conclusion of the assessment of environmental impact is correct and reasonable.

Minimi�e the impact of the project on the environment. During construction, priority is given to wasteland and inferior land to improve the e�ciency of land use without occupying the farmland and a�ecting community crowds and wildlife habitats. Attention is paid to prevent the lea�age of glare, fuel and mud. ��orts are made to strengthen environmental protection and ecological restoration during pipeline construction.

Restore the damaged ecosystem. For the environmental damage caused during construction, the �roup restored it to its original state after construction, including vegetation restoration, soil and water conservation, etc.

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the steam consumption was saved by of low-temperature heat can be recovered in phase �� tons per year 48.8MW 121,100

Wildlife protection. During the construction period, it is strictly prohibited to destroy animal nests, hunt, feed and intentionally harass wild animals. Trapped wild animals must be rescued in time.

�trengthen the research � development of soil and groundwater remediation technology and its reserve. The �roup has actively promoted the development and reserve of soil remediation technology and formed a complete site technology system, including bioremediation and phytoremediation, so as to advocate the application of �B� �nature-based solution� and promote the construction of �clear water, blue s�y and pure land�.

Case Build a �technical experience pool� for soil remediation to remediate polyether-contaminated soil for Tianjin Petrochemical Co., �td.

Build a rooftop distributed P� power station to achieve both economic and environmental bene�ts

Case

The rooftop distributed P� power station built by �ingbo �ngineering Co., �td., a member company of the �roup, converts the direct current generated by P� cells into alternating current with high power �uality, low harmonics and in line with the national grid-connected standards through inverters, and gives priority to the use of clean power through the switch control cabinet, while the surplus power is sold to the �tate �rid as its income. After the completion of the power station, it is expected that it can supply 7,895,900 �Wh of electricity to the power grid every year, which, compared with the thermal power with the same power generation capacity, is e�uivalent to saving 2,526.67 tons of standard coal every year, while reducing the emissions of various air pollutants every year, including about 6,619.89 tons of carbon dioxide, 21.�8 tons of sul�de and 18.70 tons of nitrogen oxides.

it is expected that it can supply of electricity to the saving of standard coal every year power grid every year

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7,895,900

2,526.67

�Wh

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tons
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��ile red�cin� t�e reducing the emissions of various air pollutants of sul�de of nitrogen oxides every year, including about of carbon dioxide 6,619.89 tons 21.48 tons 18.70 tons

�n order to strengthen the technical reserve of soil and groundwater remediation, �inopec Fifth Construction Co., �td., a member company of the �roup, set up a technical research team, selected the demonstration project to train technical talents, and built a �technical experience pool� to promote the solution of bottlenec�s in the project implementation process. At the same time, relying on its engineering projects, the company set up an on-site pilot scienti�c research base, carried out technical R�D cooperation, and steadily advanced a number of scienti�c research topics. Through the implementation of the project, the company successfully promoted the application of the technology, establish the technical system of soil remediation, promote the construction of the standardi�ation system of petrochemical sites and improve the technical capabilities of soil remediation.

Tianjin Petrochemical Polyether �ite Remediation Project is the �rst independent remediation site of �inopec �roup. �n the process of remediation, �inopec Fifth Construction Co., �td. established a screening database of remediation technologies for organic pollution at the petrochemical site, optimi�ed pollutant identi�cation and classi�cation control, accurately coupled remediation technologies, and established an intelligent management platform to reali�e online monitoring, remote control and result judgment, which has greatly improved the treatment rate and e�ect. During the reporting period, 920,000 cubic meters of soil and 1�0,000 s�uare meters of groundwater were successfully restored. Than�s to the e�orts of the company, the local ecosystem has been restored, and bioremediation and phytoremediation reali�ed. �n addition, �ve patents have been applied and three group standards compiled.

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The relocation project of �ing�hou �il Depot of �ubei Petroleum Branch, which was contracted by �uang�hou �ngineering Co., �td., achieved high-standard mid-term delivery, contributing to the implementation of the �angt�e River Protection �trategy.

Tenth Construction Co., �td. formulated a special hydraulic conservation plan during the construction of the natural gas main pipe networ� project in western �uangdong

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�ddre�� limate ��an�e

Addressing climate change has become a global consensus. �nder this context, the Chinese government has put forward the climate action goal of �carbon pea�ing and carbon neutrality�. As an important engineering service provider and technology patent holder in the petrochemical industry, the �roup attaches great importance to climate change and actively responds to the issue. At the same time, the �roup fully responded to the Declaration of China�s Petroleum and Chemical �ndustry on Carbon Pea�ing and Carbon �eutrality issued by �inopec �roup, actively promotes the development of energy structure in the clean and low-carbon direction.

�limate c�an�e re�pon�e

The �roup also attaches importance to the research � development and utili�ation of low-carbon technologies and actively cooperates with research institutes at home and abroad. During the construction of the project, the �roup also too� into full consideration the impact of regional climate ris�s on the project implementation and by establishing a sound emergency response mechanism, improved its emergency response capability in the face of climate disasters, minimi�ed the impact of climate change on the project construction, and boosted its ability to adapt to climate change.

�arr� o�t ��ar�on �ea�in� and �e�tralit�� re�earc�

The �roup actively carries out �Carbon Pea�ing and �eutrality �-related research, and has made great progress in standards formulation, reali�ation of �double carbon� path.

The construction engineering company, a member company of the �roup, fully relying on the �oint R�D Center of �reen Technology of Carbon �eutrality jointly established with the �nstitute of Process �ngineering of the Chinese Academy of �ciences and �anshan Petrochemical Co., �td., gave full play to its own experience and advantages in engineering technology innovation and engineering transformation so as to advance the construction of the carbon neutrality industrial demonstration par� and jointly promote the low-carbon development of petrochemical industry.

�limate c�an�e �overnance

The Board of Directors of the �roup is responsible for supervising and managing climate-related issues and wor�, and the �� Committee is responsible for determining climate-related issues, ma�ing suggestions to the Board of Directors, and supervising the implementation of the �roup�s climate change response plan.

Ri�� and opport�nitie� �ro��t �� climate c�an�e

The �roup regularly identifies and evaluates climate ris�s and opportunities. The possible ris�s brought by climate change include the ris�s of tightening carbon emission policies, the ris�s of rising supplier costs, the possible damage to production e�uipment caused by extreme weather events and major natural disasters, and the ris�s of affecting employees�safe production and normal business order. Climate change also provides vast mar�et opportunities for the Company�s development. The �roup is committed to promoting scientific and technological innovation, providing high-end thin� tan� support for the green, clean and e�cient development of the industry, and helping re�ning and chemical enterprises to enhance their green and low-carbon competitiveness.

��P�C �nergy Conservation Technology �ervice Co., �td. has formed five national standards for water inta�e �uota, led the formulation of local standards, participated in the formulation of group standards for the �valuation and Certification of Carbon �eutrality �atural �as and in the revision of national standards for mandatory energy consumption� carried out the research on evaluation technical specifications of green factories in �ainan Province, and jointly promote the professional and high�uality development of green environmental protection industry and petrochemical industry in �ainan by relying on the opportunity of building the �ainan Free Trade Port� undertoo� special research projects on exploring the paths towards the goal of carbon pea�ing and carbon neutrality, and provide data base and technical support for reali�ing the goal of carbon pea�ing and carbon neutrality in chemical industry� strengthened research in the field of carbon mar�et and carbon trading, and further improved the research level in the �eld of carbon asset management.

Re�pond to e�treme �eat�er

The �roup plans to ta�e climate change into consideration as an issue concerning its own operational ris�s, actively responding to the impact of extreme weather such as rainstorms and typhoons on its operations.

�n �uly, 2021, a typhoon called �Firewor�s� landed in the coastal area of Zhoushan, Zhejiang Province. Due to the continuous heavy rainfall and windy weather in the project construction site of �inopec Tenth Construction Co., �td., a member company of the �roup, the �ngineering Project Department made deployment in advance, immediately started the typhoon prevention emergency plan, reinforced the project office area, the pipeline processing plant, and the material supply warehouse and other areas, conducted comprehensive and three-dimensional safety inspection in the construction area, and investigated the potential ris�s of temporary electricity use and construction machines and tools, building a safety control line for the construction of the project. �n addition, more than 2,700 construction wor�ers were safely transferred to other areas 12 hours before the landing of the typhoon.

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�6 2021 Environmental� Social and Governance Report

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�n the operation process, the �roup actively responds to the needs of society and the expectations of
people, puts itself in the shoes of employees, and wor�s with partners so as to reali�e the sharing of
resources between the enterprise and society as well as the common development of the industry and
society.
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�D�s topics that this chapter responds to

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03
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Societ�
�0 �are �or Emplo�ee�� Gro�t�
63 Sta�le and Sa�e �peration
68 �artner �it� Re�pon�i�le �artner�
�2 �mprove �rod�ct Service�
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80 Serve t�e �omm�nitie� ��ole�eartedl�
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�are �or Emplo�ee�� Gro�t�

�mployees are the inexhaustible motive force for the development and progress of an enterprise. The �roup regards employees as its important partners, adheres to the people-oriented principle, protects employees�basic rights and interests and improves the training system to promote their career development� improves the occupational health management system to ensure the physical and mental health of employees� cares for employees�lives and guides them to wor� and live happily.

�ttac� importance to ��man ri��t� protection

The �roup strictly abides by the �abor �aw of the People�s Republic of China, the �abor Contract �aw of the People�s Republic of China, the �aw of the People�s Republic of China on the Protection of Minors, the Regulations on the Prohibition of Child �abor and other laws and regulations, and actively practices the national human rights action plan and international human rights conventions. At the same time, the �roup also strictly abides by the relevant local laws and regulations, such as the �abor �aw issued by the �ingdom of �audi Arabia. The �roup resolutely opposes any forms of illegal employment such as child labor and forced labor, and strictly prevents child labor, forced labor and other illegal employment, adhering to the principle of voluntary and e�ual employment. By signing formal labor contracts with employees, the �roup fully protects employees�rights and interests in terms of recruitment, dismissal, promotion, wor�ing hours, vacation, salary and bene�ts, anti-discrimination, diversity and e�ual opportunities, and safeguards their rights to �now, participate and supervise. At the same time, the �roup also strives to build a healthy, harmonious, stable and win-win labor relationship with employees.

During the reporting period, no violations such as use of child labor and forced labor occurred in the �roup, and no lawsuits were �led due to employment problems.

��ild a diver�e team

We pay attention to the diverse composition of employees, evaluate the �ualifications of professionals from the aspects of compliance, wor� attitude, �ualification, performance and ability, and ensure that all employees enjoy e�ual employment opportunities. We recruit talents through multiple channels, including campus recruitment, social recruitment and internal recommendation. We treat all candidates e�ually in the recruitment process, and do not loo� down on candidates because of their color, nationality, language, race, creed, or physical disability.

Emplo�ment o� t�e Gro�p in 202��

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�ame o� indicator �nit 202�
Total number of employees / 16,973
�� t�pe o� emplo�ment
Full-time / 16,973
Part-time / 0
�� ender
�umber of male employees / 12,�36
�umber of female employees / �,537
�� a�e
Aged 30 and below / 1,995
Aged 31-50 / 10,191
Aged 51 and above / �,787
�� ed�cation
With master�s degree / 2,987
With bachelor�s degree / 7,807
�unior college degree / 2,8�9
�thers / 3,330
�� re�ion
Domestics / 16,�28
�verseas / 5�5
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�verseas employees are an important part of the �roup�s wor�force that provides a solid foundation for the �roup�s international development strategy. We care about the career development, business training, health and safety of foreign employees, constantly promote the internationali�ation of talents and locali�ation of employment, respect local culture and strengthen cultural integration so as to stimulate the initiative of foreign employees, create value for the overseas business pattern of the �roup and share the achievements with foreign employees. �n international projects, we actively participate in local or third-country recruitment meetings to introduce foreign employees so as to promote the locali�ation of overseas employment.

Case �mployee locali�ation in �audi Arabia

�� audi Arabia has advanced employee locali�ation to help �audis get employed. �t signed a training agreement with the �ational Construction Training Center of �audi Arabia. �n March 7, 2021, it started recruiting a total of �0 �audi Arabian trainees for the �rst training session, including safety supervisors, electricians, instrument wor�ers and plumbers.

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recruiting a total of �audi Arabian trainees for the �rst training session

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Emplo�ee lo�� rate o� t�e Gro�p in 202��

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�ame o� indicator �nit 202�
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�mployee loss rate by gender	Male � 1.87
	Female � 1.3�
�mployee loss rate by age	Aged under 30 � 7.87
	Aged 31-50 � 1.30
	Aged 51 and above � 0.08
�mployee loss rate by region	At home � 1.78
	Abroad � 0.00

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�mprove �alar� and �el�are

Adhering to the salary distribution philosophy of �pay based on value, pay based on the post and pay based on performance�, the �roup implements a competitive salary distribution system in line with the mar�et salary price mechanism. We have established a bene�t-oriented salary mechanism, and formulated a medium- and long-term incentive plan for �ey employees. At the same time, we have set up a perfect performance appraisal mechanism, given full play to the leading role of appraisal and distribution, and implemented the wor� e�ciency-based appraisal, lin�ing the completion of various indicators with the total salaries, which has increased the incentive and binding of individual indicators, and helped encourage employees to share the value results together while creating bene�ts for the Company.

The �roup has established a perfect employee welfare system, paying �five insurances and the housing provident fund� for employees according to law, adding supplementary benefits such as supplementary medical insurance, recuperation subsidy, heatstro�e prevention and cooling fee for employees, and paying personal accident insurance for overseas employees. �n addition, we respect employees�vacation rights, and safeguard employees�vacation rights such as statutory holidays, wedding and funeral leave, maternity leave, late-child leave, breastfeeding leave and paid leave. For minority employees, we respect their religious beliefs and customs, such as arranging a day o� for Muslim employees on �id al-Fitr.

�n addition, committed to women�s e�ual rights, the �roup attaches great importance to safeguarding the legitimate rights and interests of female employees. The Company�s Trade �nion has established the Women Wor�ers�Committee to ensure the implementation of the regulations on maternity leave and breastfeeding leave as well as the regular physical examination system for female employees, paying attention to their physical and mental health and career development while providing an ever-improving wor�ing environment and better conditions for female employees.

Help emplo�ee� �ro�

The �roup implement the strategy of �ma�ing the enterprise stronger with talents�. While developing itself, the �roup actively responds to the development needs of employees. By establishing a multi-level and comprehensive training management system, the �roup has enriched training contents and innovated training methods, which has helped employees to constantly improve themselves, reserved �nowledge and experience for employees�growth and development, and improved their comprehensive �uality, thus reali�ing the common progress of employees and the enterprise as well as the long-term development goal of the �roup.

��ildin� o� talent team�

The �roup continuously strengthens the construction of high-�uality professional talent teams and explores the way of establishing a wor�ing mechanism of �normal development, dynamic reserve, collaborative training and diversi�ed use�, forming five professional areas: scientific research and technology, professional management, emerging business, s�ill operation and international business. Through multi-level talent training, we help employees grow rapidly and broaden their career development space, thus reali�ing the integrated development of personal value and the �roup.

During the reporting period, the �roup has 1 academician of the Chinese Academy of �ciences, 3 academicians of the Chinese Academy of �ngineering, 1 national expert with outstanding contributions, �9 people who enjoy special government subsidies, 1 national candidate of �Millions of Talents Project�, 5,6�8 employees who have obtained senior professional and technical �uali�cations.

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the �roup has academician of the
1 academicians of the Chinese
Chinese Academy of �ciences 3 Academy of �ngineering
national expert with outstanding contributions
1
people who enjoy special government subsidies
49
national candidate of �Millions of Talents Project�
1
employees obtained senior professional and technical �uali�cations
5,648
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�n the next step, the �roup will carry out the strategy of �Talent-based �nterprises� and implement the medium and longterm talent development plan. We will conduct the �Talent �eedling Program� for young cadres, promote the multi-post exchange training of young cadres within and among different business units, provide broader opportunities for young cadres to experience, and comprehensively enhance the professionalism and overall management ability of cadres. We will launch the training programs of �Approaching �cientists� and �Towards Advanced �nterprises�, adopt the method of ��xchanging �isits with �utside Resources�, strengthen professional �uality training, improve the comprehensive �uality and ability of cadres and employees, and provide better human resources guarantee for corporate development.

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Talent �eedling Approaching Towards Advanced
Program �cientists �nterprises
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	Compile and issue the Regulations on the Management of �xpert Database of �inopec
�mprove t�e ��tem o� �electin� and emplo�in� people	�ngineering �roup and the Regulations on the Management of Talent Training of �inopec �ngineering �roup so as to give full play to the supporting role of various experts, strengthen the source construction of young cadres, and cultivate talents
	with excellent �uality and optimi�ed structure.
	Publish the Classi�cation of �pecialty in Technical �e�uence of �inopec �ngineering
	�roup and the Classification of �ob in ��ill �peration �e�uence of �inopec
	�ngineering �roup, and based on the classi�cation of specialty �job�, complete the
	�uali�cation �valuation �tandard of Talent Promotion Channel for main specialties
�mprove t�e talent �tandard	�jobs�, standardi�e the re�uirements of �nowledge, s�ills and abilities that the people at different positions should own, and provide standards for talent selection and
eval�ation ��tem	training�
	�n order to evaluate the international talent team, the �nternational Talent �valuation
	�tandard �ystem has been established by combining �uantitative and �ualitative
	methods, which includes three dimensions of ability evaluation indicators: basic
	�uality, professional �uality and management �uality.
	Formulate the Management Regulations of the �ead�uarters of �inopec �ngineering
	�roup �Trial�, optimi�e the conditions of talent selection, perfect the relevant systems
�pen �p t�e talent promotion c�annel	and methods and channels for talent growth, form management systems featuring expert management, performance appraisal and talent growth, reali�e the cross promotion and hori�ontal penetration of talents among the three se�uences, i.e.,
	business management, professional technology and s�ill operation, and further
	broaden the space for employees�career development.
�romote t�e implementation o�	Promote the implementation of the sta� rotation system, expand employee�s career
t�e �ta� rotation ��tem	hori�ons, and cultivate high-�uality compound talents
E�ta�li�� t�e �mentor� apprentice� talent trainin� mec�ani�m	Accelerate the training of young talents, carry forward excellent styles, experience and techni�ues, and help employees grow into professionals.
	Dispatch outstanding employees to carry out overseas construction projects, help
�mplement t�e mec�ani�m o�	them to become more familiar with international business processes, improve their
trainin� talent� t�ro�� over�ea�	cross-cultural communication ability, and reali�e the goal of training international
pro�ect�	talents pro�cient in technology and with certain abilities in business, foreign language
	and management.

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�The Power of �ntegration� �outh Practice �peech Contest

Case

�n �uly 21, �inopec �ngineering �roup held the �Power of �ntegration� �outh Practice �peech Contest in Beijing. �ine youth representatives from the head�uarters of the Company and its member units who had participated in the First �Three �undred and Three Thousand� Program attended the colorful contest which went swimmingly in a warm and inspiring atmosphere. The nine contestants shared their experiences in di�erent positions, showed the courage as petrochemical youths to overcome di�culties and grow robustly, and elaborated on the meaning of the �Power of �ntegration�, showing that sharing weal and woe, all member units of �inopec �ngineering �roup are wor�ing closely towards the same goal so as to create a more brilliant future for the �roup with the majestic power of integration and cohesion.

The �Three �undred and Three Thousand� Program is a program for training young cadres launched by �inopec �roup, aiming to promote the exchange and training of young cadres between enterprises and within enterprises, so that young cadres can obtain hands-on experience in tough positions, major projects and harsh environments, and develop their ability to shoulder heavy responsibilities. A total of 36 people were dispatched to participate in the First �Three �undred and Three Thousand� Program and 16 people were received and trained.

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Emplo�ee�� trainin�

Ta�ing cultivating high-�uality talents as its long-term development strategy and promoting the overall improvement of employees��uality as its starting point, the �roup committed to building a �learning, service-oriented and innovative� organi�ation. During the reporting period, we held fruitful online and o�ine training courses such as ��uppliers� Administrators Training Course�, �Project Management Training Course� and ��nline Continuing �ducation Training Course for �afety Management �ta��.

We focus on developing and improving �ey training programs. We have organi�ed the annual �ey training program �Training Course for �mproving the Ability of Project Managers� to build a team of project managers with excellent �uality, e�ectively solve the common and di�cult problems in engineering construction, and further improve the organi�ation, management and decisionma�ing ability of re�ning engineering construction project managers and cultivate outstanding bac�up talents. We o�er 280-hour courses around four modules, i.e., ideological education, s�ill improvement and strategic thin�ing. We have also improved the training courses for the Company�s young bac�bone employees and optimi�ed the content, time and method of the training courses to ma�e them more useful and applicable.

Due to the impact of the pandemic, we carried out various trainings in the form of �online business �nowledge training + o�ine examination and certi�cate collection�. During the reporting period, the total training duration reached 825,000 hours, with a total investment of RMB �3.36 million, and the average training duration of employees reached �8.61 hours.

�romote	Formulate the Management Regulations of �inopec �ngineering �roup on �taff Training and the
�tandardi�ation o�	�mplementation Rules of �inopec �ngineering �roup on �ta� Training to promote the construction of
trainin�	the Company�s talent training system.
	�trengthen the management ability of the education and training center, provide high-�uality
�mprove trainin� re�o�rce�	training support for the Company�s training wor�, organi�e the education and training center to benchmar� the teaching philosophy and services of �inopec �roup�s �chool of Management, and continuously optimi�e and enhance the training ability of the education and training center based on
	the training experience accumulated in recent years.
E�ta�li�� a pool o� ��ll�	�stablish a pool of full-time and part-time trainers, promote the sharing and inheritance of internal
time and part�time	management experience and �nowledge information, and the sharing of training resources such as
trainer�	excellent trainers.
	Adopt the training methods such as �online training� and �o�ine training�, and apply various means
�iver�i�ed trainin� met�od�	such as networ� training, simulation training, remote education and audio-visual education. At the same time, based on di�erent trainees and training contents, �exibly choose multimedia viewing, on- site observation, hands-on operation, experience � exchange, appraisal of competition, assessment
	and other methods to improve the training results.

Sta� trainin� o� t�e Gro�p in 202��

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�ame o� indicator �nit 202�
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Case Theme Activity of ��row Together with Zhenhai Base�

�inopec Zhenhai Base is one of the seven national petrochemical industrial bases. During the reporting period, under the theme of ��rowing Together with Zhenhai Base�, the �roup set off an upsurge at the project construction site of Zhenhai Base, which was instrumental in the smooth progress of the project.
�nder the goal of ��andover before 630�, each member company of the �roup actively carried out the theme labor competition, vigorously promoted the spirit of model wor�ers, labor spirit and craftsman spirit, and created high-�uality petrochemical projects with excellent �uality and safety performance. The �roup gave full play to its overall advantage as a �legion� while, with the spirit of �one family, one mind, one goal and unity�, all member enterprises made concerted e�orts to tac�le di�culties and successfully achieved the common goal of � �andover before 630�. The talent team was tempered and the common growth of talents and the project reali�ed.

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Percentage of trained employees by gender	Male � 57.03
	Female � �2.97
Percentage of trained employees by employee category	�igh-level � 21.21
	Medium-level � 35.20
	�rdinary employees � �3.59
Average training hours of employees by gender	Male �our�s�/person 51.01
	Female �our�s�/person �6.21
Average training hours of employees by employee category	�igh-level �our�s�/person �3.5�
	Medium-level �our�s�/person �9.30
	�rdinary employees �our�s�/person 52.99
Total training hours	10,000 hours 82.50
Training input	RMB 10,000 �,336

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Promote the �mentor-apprentice� model to accelerate the growth of young talents

Case

The �mentor-apprentice� model is an important way for the �roup to accelerate the growth of young talents. According to di�erent majors, �inopec �ngineering �ncorporation, a member company of the �roup, too� measures such as �double tutorial system of scientific research and development + engineering design�, �double tutorial system of mentor + apprentice� and the co-mentoring system in multiple professional �elds. During the training period, the whole process was managed from the selection of mentors, pairing of mentors and apprentices, apprenticing ceremony, signing of agreements, follow-up training, assessment and evaluation, and selection of outstanding mentors and apprentices. �ver the years, we have maintained a 100� apprenticeship rate for fresh college graduates, formed a regular youth training mechanism, and built a solid foundation for the development of young talents. A total of 13� pairs of mentors and apprentices have been named ��utstanding Mentors and Apprentices� by the company.

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Award ceremony of ��utstanding Mentors and Apprentices� held by �inopec �ngineering �ncorporation

�uang�hou �ngineering Co., �td., a member company of the �roup, based on the summary of many years�experience, formulated the Management Regulations on Mentoring and Apprenticeship to further improve the institutionali�ation level of the �Mentoring and Apprenticeship� wor�. �ince 2017, the signing rate of the �Mentor-Apprentice Agreement� for fresh graduates has reached 100�, and a total of 201 pairs of mentors and apprentices have been formed. �n 2021, at the signing ceremony of the �Mentor-Apprentice Agreement� � the meeting in commendation of outstanding mentors and apprentices, 11 pairs of mentors and apprentices won the title of ��utstanding Mentors and Apprentices�.

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�igning the �Mentor-Apprentice Agreement� with fresh employees of �uang�hou �ngineering Co., �td.

Case �old international engineering management wor�shops

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�anjing �ngineering Co., �td., a member company of the �roup, adopted the form of Wor�shop to carry out training on international engineering management �nowledge in order to cultivate fastgrowing employees and international compound reserve talents. Combining with the actual cases of its overseas projects, the company invited experts in related fields to teach international engineering management �nowledge through offline and online lectures and wor�shops to familiari�e trainees with the company�s overseas business operation model and rules, enable them to understand and master the wor� methods and s�ills, and inspire them to learn, thin� and grow. During the reporting period, a total of 17 international engineering management Wor�shops were held.

�are a�o�t emplo�ee�� ealt�

�mployees� health is an important guarantee for the stable development of the Company. �n accordance with the Management Regulations of �inopec �roup on �mployee�s �ealth, the �roup implements the management model of employees�health and overall health. According to the model, based on occupational health, the occupational health, physical health and mental health of all employees are mutually promoted and simultaneously improved, and the people-oriented concept is ful�lled to safeguard employees�health rights and interests.

�andemic prevention and control

�n strict accordance with the goal of ��ero infection at home and �ero gathering abroad�, the �roup adhered to the combination of layered prevention and control and local emergency treatment, and strictly implemented various prevention and control measures at home and abroad, thus e�ectively ensuring the safety of employees.

For more details, please refer to Topic 2 �Do a good job in pandemic prevention and control against the odds�in this report from page 11 to 12.

�cc�pational �ealt�

The �roup has always adhered to the principle of �prevention first, combining prevention with treatment� and the concept of �putting health and safety �rst�, and strictly abided by the relevant laws and regulations on occupational health in the country and region where the project is located, such as the �aw of the People�s Republic of China on Prevention and Control of �ccupational Diseases, the Management Regulations for �ccupational �ealth �nspection, the Regulations on �upervision and Management of �ccupational �ygiene in Wor�places, the Prevention and Control �tandards for �ccupational �a�ards in Construction �ndustry, and �uwait�s �abor �aw, �afety Precautions against �ccupational �njuries and Diseases, Medical �valuation when �ccupational �njuries and Diseases �ccur, etc.

During the reporting period, the �roup had no cases related to occupational diseases, no pandemic events at home, no gathering pandemic abroad, and no severe or fatal cases.

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��ical and mental �ealt�

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�mprove t�e occ�pational
�ealt� mana�ement ��tem

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�denti�� t�e in��encin� �actor� o� occ�pational �a�ard� in �or�place�

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��e occ�pational �ealt� protection article� in accordance �it� re��lation�

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�arr� o�t occ�pational
�ealt� trainin�

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�r�ani�e occ�pational
�ealt� e�amination and
e�ta�li�� occ�pational �ealt� ��rveillance arc�ive�

Formulate a series of management systems such as the Regulations on �ealth Management of �mployees of �inopec �ngineering �roup, the Regulations on Management of �abor Protection �xpenses of �inopec �ngineering �roup , the Regulations on Management of �ndividual �abor Protection Articles of �inopec �ngineering �roup and the Regulations on Management of �abor Protection Articles at Construction �ites�

Revise the Regulations on �ealth Management of �verseas �mployees of �inopec �ngineering �roup, and do a good job in employee health management from four aspects: before going abroad, staying abroad, during the trip, and after returning to China.

�dentify the occupational ha�ards that may occur in the construction process according to the Code for Prevention and Control of �ccupational �a�ards in Construction �ndustry ��BZ/T 211-2008�, detect them regularly, and inform the operators truthfully.
�perators shall be distributed �ualified personal protective e�uipment, such as protective clothing, protective glasses, protective mas�s, protective gloves, insulated shoes, earplugs, winter clothes, washing products, etc., and urge them to use them correctly.
�rgani�e pre-job and on-job occupational health-related �nowledge training for operators on a regular basis to ensure that they have the necessary occupational health �nowledge to correctly use occupational disease prevention facilities and personal protective e�uipment, and forbid those who fail the training and examination to wor� at their posts�
�rgani�e on-site �rst aid training�
�old health �nowledge lectures to help the sta� to understand and pay attention to the prevention and treatment of occupational diseases.

According to the employees�age, post and location, organi�e the occupational health examination before, during and after the job, and inform the employees of the results in writing.

�n order to protect the health rights and interests of domestic and overseas employees and promote the overall health of employees, the �roup has formulated a series of management systems and guidelines such as the Regulations on �ealth Management of �mployees of �inopec �ngineering �roup, the Regulations on �ealth Management of �verseas �mployees of �inopec �ngineering �roup, the �uidelines for the �ealth Ris� Assessment of �verseas �mployees, and the �uidelines for the Prevention and Control of Cardiovascular and Cerebrovascular Diseases of �verseas �mployees, which have defined the responsible department of health management and formed a sound employee health management system. We adhere to the principle of �early detection, early intervention and early treatment�, and include health management funds in the annual budget to ensure the effective implementation of employee health management.

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early
early treatment
detection
early
intervention
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During the reporting period, we organi�ed on-site �rst aid training, focusing on the use of the automated external de�brillator �A�D�, theory and practice of cardiopulmonary resuscitation, and o�ce health care s�ills� carried out employee health services, providing video consultation, referral to Beijing and appointment with famous doctors for employees� carried out physical examination for employees, formulated physical examination plans for employees of di�erent ages, and established a list of physical examination for high-ris� personnel� and carried out physical examination and evaluation of employees before they went abroad.

The �roup implements the �mployee Assistance Program ��AP�, aiming to help employees solve their occupational mental health problems, care about employees�situations beyond wor�, discover and relieve employees�unsafe and unhealthy lifestyles and bad psychological state in time, and guide and promote employees�self-health management� actively understand the wor�ing environment and thin�ing of overseas employees, and provide them with services such as video consultation and health ris� assessment.

Case �stablish an early warning platform for employees�health

Based on the information technology and the �nternet of Things technology, the �ecurity Technology Center of �inopec Fifth Construction Co., �td., a member company of the �roup, has established an early warning platform for employees�health. Through the services such as health ris� assessment, real-time online monitoring, psychological consultation, health warning, daily health care, remote diagnosis and treatment, and �uic� medical treatment, the platform has helped the enterprise e�ectively manage employees� health ris�s in advance, intervene in advance, obtain employees� health data in real time, and e�ectively manage and analy�e employees�health examination data.

��

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Case �et up health stations for employees

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According to the needs and expectations of employees, �inopec Fourth Construction Co., �td., a member company of the �roup, has set up 86 health stations for employees and achieved 100� coverage. Mainly concentrated in the first-line construction sites, these stations have been e�uipped with commonly used medicines and heatstro�e prevention and cooling supplies. At the same time, they also have small �tness e�uipment such as body fat scales, thus enabling employees to pay attention to their health.

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The �ealth �all of the �afety Technology Center built by Fifth Construction Co., �td.

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�inopec �ngineering �ncorporation and Beijing An�hen �ospital�s Medical and �ocial Wor� Department jointly giving free medical treatment

�xperts invited by �eavy �ifting � Transportation Co., �td. o�ering �AP psychological counseling for employees.

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�are a�o�t emplo�ee��li�e

The �roup cares about employees�wor� and life, attaches importance to humanistic care, actively solves practical problems for employees, vigorously carries out warmth activities, and earnestly cares about employees�lives. We have carried out a variety of activities to encourage employees to balance their wor� and life, and created a positive, optimistic and harmonious wor�ing atmosphere through �tness activities and fun games.

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�inopec �ngineering �uang�hou �ngineering Co., �ncorporation organi�ing �td. holding the ��nnovation the activity of �cutting Cup� football match for window decorations and employees writing �pring Festival couplets� �nergy Management �hanghai �ngineering Co., Technology �ervice Co., �td. �td. holding the Public organi�ing summer series �pen Day themed �Better activities for children Childhood, Better Future�

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�uang�hou �ngineering Co., �td. carrying out �AP training

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Case �mployee representatives of �inopec �ngineering �roup participated in the torch relay of the Beijing Winter �lympics

Sta�le and Sa�e �peration

�n February 2022, on behalf of nearly 20,000 employees, two employee representatives of �inopec �ngineering �roup participated in the torch relay ceremony of the Beijing Winter �lympics as torchbearers.

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�orc��earer ��. �a �ia

��inopec �ngineering �roup has participated in the scientific and technological research of new materials for the torch shell. As the representative of ��, � am extraordinarily proud to hold the �Flying�torch partially developed and manufactured by ourselves to participate in the torch relay�� said Ba �ia, an outstanding youth representative of the �roup.

�orc��earer �r. S� Hon�

�The shell of �Flying�torch and the hydrogen fuel in the main venue are all made by �inopec �roup. � am very honored and proud to participate in the torch relay of the Beijing Winter �lympics on behalf of ��,� said �u �ong, a survey and design master of petrochemical industry, a senior expert of �inopec �roup, and leader of polyolefin technology at �inopec �ngineering �ncorporation, a member company of the �roup.

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�afety production is the foundation of the sustainable development of the �roup. The �roup strictly abides by the �afety Production �aw of the People�s Republic of China, the Measures for the Administration of Construction Permits for Construction Projects, the Measures for the �mplementation of Fire �afety Responsibility �ystem, the �pecial ��uipment �afety �aw of the People�s Republic of China, the Regulations for the Management of Dangerous Chemicals, the �mergency Regulations for Production �afety Accidents and the relevant laws and regulations on production safety in the place where the project is located, and implements the overall re�uirement of �safety is put above anything else�, strengthens safety ris� management, and promotes the long-term mechanism of production safety so as to ensure production safety.

Stren�t�en �a�et� mana�ement

The Company has established the �� management system with the distinctive characteristics of refining and chemical engineering, strengthened the information collection, transmission and analysis, implemented the PDCA system operation cycle, and strengthened the process assessment in all lin�s of system operation so as to improve the safety management level.

�n addition, the Company has established the �� Management Committee, which, as the highest decision-ma�ing establishment of �� management, is responsible for handling the major �� issues of the Company. The Committee has set up an o�ce as the permanent establishment to carry out daily wor�.

Re�pon�i�ilitie� o� t�e HSE �ana�ement �ommittee o� t�e �ompan�

�mplement the �� guidelines, policies, laws, regulations, standards, norms and provisions of the state and local governments and �inopec, and organi�e the implementation through functional departments and subsidiaries
�rgani�e the formulation of the Company�s �� policy, objectives and �� management standards, and supervise the implementation of �� responsibility system
�tudy and decide the major decisions of the Company�s �� wor�, organi�e the assessment of major hidden dangers, and urge special personnel to have a project registered for recti�cation

Review the emergency rescue plan for major emergencies, organi�e and coordinate the �� inspection, organi�e, coordinate and guide special personnel in investigating and handling safety accidents

�old wor�ing meetings of the committee on a regular basis, review and approve the annual or stage �� wor� plan of the Company, discuss and decide the major issues in �� management and measures that should be ta�en, and decide the annual �� wor� deployment

Review and approve advanced units, collectives and wor�ers in safety production, occupational health and environmental protection, and decide on matters of commendation and punishment

�uide, supervise and coordinate the �� Management Committee of subsidiaries in carrying out wor�
�et up the Company�s safety technical expert group

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Sa�et� mana�ement polic� o� t�e Gro�p �e�ample��

Regulations on �afety Ris� Management of �inopec �ngineering �roup �Trial�

Regulations of �inopec �ngineering �roup on �mergency Management

Management Regulations of �inopec �ngineering �roup on �� Ris� Control and �idden Danger �nvestigation �Trial�

�afety Management Regulations of �inopec �ngineering �roup for �igh-ris� �perations

Regulations on �mergency Management

Management Regulations for Production �afety Accidents ��vents�

�afety Management Regulations for Production Change

Speci�� a�et� prod�ction re�pon�i�ilitie�

The �roup �rmly adheres to the concept of safe production, follows the principle of �putting life and safety �rst�, clearly speci�es the persons responsible for safe production, and focuses on safety ris� management, safety supervision and hidden danger investigation and management so as to ensure safe and stable operation. During the reporting period, the 11 member companies of the �roup passed the �� 5001 occupational health and safety management system certi�cation, achieving 295 million safety manhours and maintaining a stable trend of safe production.

Sa�et� prod�ction o��ective� During the 1�th Five-�ear Plan period: The rates of common accidents and The lost man-hour rate is reduced by Total lost wor�time rate is reduced by �� accidents �events� of practitioners �including subcontractors� are reduced by 40% 30% 30%

During the 1�th Five-�ear Plan period:

�reca�tion� a�ain�t �a�et� accident�

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|||
|---|---|
|�stablish a dual prevention mechanism of layered management and control|
|of �� ris�s and investigation and management of hidden dangers, clarify|
|the responsibility of ris� identification and dynamic management and control|
|re�uirements, and establish a ris� list database�|
|�mplement operation permit management for 17 high-ris� operations, apply ris�|
|analysis tools, standardi�e the identification, evaluation, layered management|
|and control of �� ris�s in the production process, and the investigation and|
|Sa�et� ri�� identi�cation|management of hidden dangers, so as to prevent and reduce accidents and|
|improve the intrinsic safety level�|
|�eep an eye on the safety ris�s brought by new energy business such as hydrogen|
|energy, wind power and P�, and continue to pay attention to the intrinsic safety|
|ris�s in the process of �oil conversion� and �special oil��|
|During the reporting period, a total of more than 120 enterprise-level ris�s were|
|sorted out and investigated, and 13 major company-level safety ris�s under �ey|
|control were all eliminated or downgraded.|
|Compile the �afety �eadership Manual, which puts forward the principle re�uirements|
|for the management, and ma�e the �safety observation card� which is used as the|
|�a�or prod�ction �a�et� contractin�|basis for safety observation of contact points and ris� contracting points�|
|��tem|The management implements �Four �nes� for major ris� contracting points, i.e.,|
|at least inspecting the site once, holding one special meeting, listening to one|
|special report and solving one problem.|
|Adopting on-site, online, self-inspection, mutual inspection and other forms and|
|starting with 13 categories and 137 sub-items in the ��nspection and Con�rmation|
|Form of �afety Management in the Whole Process of Maintenance Projects�, we|
|strengthened maintenance safety supervision and completed the full-coverage|
|supervision of 10 large maintenance projects�|
|Formulate the Promotion Plan of Major Business Ris� Management and Control|
|�arr� o�t pro�ect �a�et� ��pervi�ion|
|�ystem Construction Based on the Whole �ife Cycle of Project Contract, and|
|conduct safety inspection or �� management system audit for major ris�|
|management and control projects�|
|�et up safety and �uality supervision teams in �ey projects, and dispatch safety|
|and �uality experts to the site for supervision and inspection. At the same time,|
|strengthen the safety supervision of projects in construction pea�s.|
|�rgani�e all member enterprises to chec� and correct �,525 items around �ey|
|�arr� o�t t�e ��00�da� Sa�et�|
|�ccident��ree �ction�|and difficult points after holidays such as resumption of wor� and production,|
|inspection, maintenance and operation.|
|�stablish an accident � event sharing platform and sharing mechanism,|
|incorporate typical accident cases inside and outside the system into the platform,|
|�mprove t�e accident � event ��arin�|and insist on ��ve-minute warning � sharing� for accidents at home and abroad,|
|plat�orm and t�e �tati�tic� and|and inside and outside the system before each meeting and activity, so as to|
|reportin� mec�ani�m o� clo�e�call|improve the level of accident prevention�|
|event data|
|�trengthen the management of close-call events and improve the statistical|
|reporting of close-call events.|
|Revise the �� management system audit criteria, compile the audit and scoring|
|rules for �� management system, set up 3� evaluation elements and nearly|
|900 evaluation items, conduct �� management system audit for all member|
|�arr� o�t mana�ement ��tem a�dit|enterprises on an annual basis, and �uantitatively evaluate �� construction and|
|operation performance�|
|�et up three audit teams to audit the �� management systems of 9 member|
|enterprises, 9 secondary units and 10 project departments.|
|�trictly abide by the Management Regulations of �inopec �roup on �verseas|
|Public �afety, the Code of �inopec �roup for Ris� Assessment of �verseas Public|
|�afety �Trial� and other management regulations, as well as the safety-related laws|
|and regulations in the place where the project is located�|
|�stablish �� management mechanism for overseas projects, set up ��|
|committee, de�ne the responsibilities and wor�ing mechanism of the committee,|
|�ttac� importance to over�ea�|and coordinate the safety management of overseas projects�|
|operation �a�et�|
|Create a whole-process and whole-system project ris� prevention and control|
|mechanism. Carry out ris� identi�cation, analysis and �uantitative evaluation of|
|important projects implemented overseas, and incorporate sand table deduction|
|based on game theory into the projects�|
|�et up an overseas public safety supervision wor�ing group to tour-inspect the|
|safety management of overseas petrochemical projects.|

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��rin� t�e reportin� period, t�e �ompan�� a�et� prod�ction �or� i� de�cri�ed �elo��

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2021
0
2020
Number of 3
occupational
accidents of
employees 2019
1
2021
0
2020
0
Number of
fatalities of
employees 2019
0
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2021
0 �
2020
0 �
Rate of
fatalities of
employees 2019 0 �
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�umber of fatalities of �umber of safety �ost time �njury Total lost wor�time rate
contractors �sub-contractors� production accidents �per 200,000 hours�
0 0 0 day 0
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�ote:�ost time �njury of �ote:Total lost wor�time rate of contractors �subcontractors �sub-contractors� contractors� is 122 days �per 200,000 hours� is 0.08

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Case �ive full play to its advantages of ��arge Troop Formation� and carry out safety and �uality supervision

�iving full play to its advantages of ��arge Troop Formation�, the �roup selected 16 �uality and safety experts from its head�uarters and 8 member companies and formed the Zhenhai Re�ning � Chemical �uality and �afety �upervision �roup, which, stationed at Zhenhai Base in mid-May 2021, continuously conducted cross-chec� and joint inspection on 12 high-ris� operation areas of Zhenhai Re�ning � Chemical Base Project and 1� technical transformation projects in the old factory area, and urged relevant units to rectify and implement the safety ris�s and hidden dangers due to the adjustment of construction period, as well as the ris�s caused by the unclear de�nition of the management interface, thus building a safe defense line.

�romote t�e �a�et� o� �ta�e�older�

The �roup pays attention to the safety management of suppliers and subcontractors, clearly re�uires uni�ed �� management for subcontractors, carries out �� system audit for strategic subcontractors, and achieves full coverage every three years.

�ubcontractors receive �� training and education at the same standard as employees of the Company, participate in ris� identification, attend �� meetings and �� inspections, and are e�uipped with labor protection articles according to the standards of �inopec �roup. �ncorporating subcontractors into the Company�s health management category, the Company re�uires all personnel to have a health examination before entering the site, and establishes a list of personnel with occupational contraindications to implement special management� carries out daily monitoring of places and posts exposed to occupational harmful factors, informs subcontractors exposed to occupational harmful factors of occupational ha�ards, and carries out occupational health examination.

�arr� o�t �a�et� trainin� and p��licit�

The �roup continues to strengthen the construction of safety production culture, creating a sound safety culture atmosphere, strengthening publicity, education and training, and steadily improving employees�safety s�ills. We compiled safety videos and trained our own and our subcontractors�safety management personnel online� issued the �otice on �trengthening �upervision Management, and put forward the re�uirements for strengthening guardianship management from six aspects, i.e., guardianship duty, site interview, training and certificate collection, resource allocation, supervision and assessment� compiled the �afety of �upervisors �eries 1+7, and strengthened the s�ills training of guardians from eight aspects, i.e., general duty, hot wor�, brea�ing ground, use of electricity, hoisting, restriction, height and blind plate� organi�ed more than 600 people to participate in more than 20 trainings, such as improvement of inspection and maintenance safety management ability, high-altitude operations, and cultivation of sca�old inspectors� organi�ed ��B�� The �ational �xamination Board in �ccupational �afety and �ealth� training to reserve international safety talents� and organi�ed more than 800 professionals to carry out the preliminary training competition of �wor� permit and supervision�. �ach member enterprise conducted hands-on training and s�ill verification for on-site construction wor�ers through the mobile safety island, safety night school, multimedia training toolbox and sta� classroom so as to enhance their safety awareness and professional s�ills.

During the reporting period, the �roup organi�ed 106 safety trainings involving a total of 10,200 participants, and totaling �7,000 safety training hours.

�ptimi�e training content and strengthen safety education through various measures

Case

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�n order to improve employees�management ability and safety s�ills, �inopec Tenth Construction Co., �td., a member company of the �roup, compiled and published the Cartoon Manual on the �afety of �ifting �perations, the Cartoon Manual of Common Mista�es in �caffolding �peration and the Cartoon Manual on the �afety of the Temporary �se of �lectricity, presenting the standard procedures and problems in �ey operation lin�s in simple and colorful cartoons by integrating science, humor, fun and practicality, and thus e�ectively improving employees�safety awareness and their s�ills in safe operation and management.

66 2021 Environmental� Social and Governance Report

6�

SINOPEC Engineering �Group� Co�� Ltd�

AB��T �� T�P�C MA�A��M��T ��R��M��T ��C��T� APP��D��

�artner �it� Re�pon�i�le �artner�

The �roup is committed to building a responsible supply chain. Abiding by the principle of fair procurement, the �roup strictly controls the fairness of the process of selecting supply chain partners and continuously promotes procurement standardi�ation and informati�ation construction to ensure compliance, transparency, fairness and justice of procurement process. For suppliers and subcontractors with whom we have established cooperative relations, we will sign the �etter of Responsibility for �ntegrity to prevent commercial bribery, standardi�e trading behaviors and maintain fair competition so as to form a transparent material supply ecosystem.

S�pplier mana�ement

The �roup has established a strict supplier selection mechanism based on the principles of fairness, justice and openness. �t has formulated management systems such as the Management Regulations of �inopec �ngineering �roup on �upplier Access, the Management Regulations of �inopec �ngineering �roup on �upplier Dynamic �uantitative �valuation and �rdering, and the Regulations of �inopec �ngineering �roup on �upplier Management. When selecting suppliers, we explicitly ta�e into consideration the sustainable development practices such as �� management and the establishment of �uality systems so as to prevent �� ris�s at the supply chain level.

We supervise and inspect the implementation of supplier assessment, and re�uire all member enterprises to conduct daily management of supplier assessment and implement internal supervision and assessment. At the same time, we also deal with the violations by suppliers in time.

During the reporting period, we set out to build a supply resource management platform for overseas projects. We formulated and revised the Regulations of �inopec �ngineering �roup on �upply Resources Management, the Regulations of �inopec �ngineering �roup on �ite �nspection of �uppliers and the Regulations of �inopec �ngineering �roup on �upplier Assessment, and provide institutional support for the construction of overseas supply resource pools and management platforms.

By the end of the reporting period, 85 new suppliers had established service relationships with the �roup, ma�ing the total number reach 3,0�1� 85 new suppliers have been �led, ma�ing the total number reach 515� 29 new overseas suppliers had been added, ma�ing the total number reach 3�3.

ma�ing the total new suppliers had established number reach service relationships with the �roup 85 3,041

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new suppliers have ma�ing the total been �led number reach 85 515

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new overseas suppliers ma�ing the total had been added number reach 29 343

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S��contractor mana�ement

The �roup attaches great importance to the management of �� ris�s of subcontractors. We revised and published the Company�s subcontracting management system documents, including the Regulations of �inopec �ngineering �roup on �ubcontracting Management, the Regulations of �inopec �ngineering �roup on �ubcontracting Management, the Regulations of �inopec �ngineering �roup on �ubcontractor �valuation Management, the Regulations of �inopec �ngineering �roup on the �n-site Management of �ubcontractors, the Regulations of �inopec �ngineering �roup on the Management of �ubcontractor Resource Pools and the Regulations of �inopec �ngineering �roup on the Management of �trategic �ubcontractors, so as to unify management standards, wor� procedures, the establishment of resource pools and evaluation, thus further standardi�ing subcontracting management behavior and promoting the ful�llment of responsibilities by subcontractors.

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Define the company-level unified strategic subcontractor cultivation ideas and paths from the aspects of tas� planning, process management, assessment, and promotion � demotion management, etc. Re-evaluate and update the list of strategic subcontractors of the Company, and form a new list of strategic subcontractors including 101 companies and covering 132 specialties.

E�ta�li�� trate�ic ��contractor mana�ement mec�ani�m

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A total of 5�0 subcontractors with 690 specialties were comprehensively
assessed. According to the assessment results and the promotion and demotion
management methods, the subcontractors were promoted or demoted, dynamic
management implemented, and subcontracting resources optimi�ed.
�r�ani�e t�e ann�al compre�en�ive
a��e��ment o� ��contractor�
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�rgani�e �� inspection, focusing on the on-site implementation of �� by
subcontractors. �ach member enterprise carried out �� system audit and
inspection on 96 subcontractors.
�r�ani�e �HSE in�pection
According to the inspection results, we adhered to combining both rewards and
punishments, communicated with un�uali�ed subcontractors and cancelled the
�uali�cation accordingly, the on-site safety behaviors were e�ectively restrained
and safety guaranteed.
G�ide and �r�e ��contractor� to ma�e
contin�o�� improvement
�rgani�e special meetings on subcontracting management, share and exchange
the experience of subcontracting management, discuss the �ey wor� of
subcontracting management, thus laying a solid foundation for the wor� in the
next step.
�r�ani�e �pecial meetin�� on
��contractin� mana�ement
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68 2021 Environmental� Social and Governance Report

6�

SINOPEC Engineering �Group� Co�� Ltd�

ABOUT US TOPIC MANAGEMENT ENVIRONMENT SOCIETY APPENDIX

Carry out special inspection of subcontractors

Case

During the reporting period, the Group organized equipment inspection for three key construction projects, including Zhenhai Project, Maoming Commercial Storage Project and Zhongsha Carbon Accumulation Project. The inspection covered 10 member enterprises, involving a total of 16 project sites. The management and use of subcontractors'equipment were carefully inspected, 280 problems found out and timely rectification required, thus improving the level of managing subcontractors'equipment.

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Case Systematically carry out training for subcontractors

Sinopec Fourth Construction Co., Ltd., a member company of the Group, incorporated the training management of subcontractors into the overall training management system of the company, and implemented it in accordance with the Management Regulations on Safety Training and Safety Capability Improvement of the Company. Based on the principles of "holding certificates to posts, joint management, and information sharing ", Sinopec Fourth Construction Co., Ltd. adhered to the access system of "no admission without training, no posts without certificates". Subcontractor training includes pre-job training and on-job training, with its content covering HSE management, technical management, quality management, material management, civilized on-site construction and process handover, finished product protection management, etc.

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2021 Contractor/subcontractor HSE system certification and audit Number of contractors/subcontractors passing environmental management system certification 596 Proportion (%) of contractors/subcontractors passing environmental management system certification 100 Number of contractors/subcontractors passing quality management system certification 596 Proportion (%) of contractors/subcontractors passing quality management system certification 100 Number of contractors/subcontractors passing occupational health safety management system certification 596 Proportion (%) of contractors/subcontractors passing occupational health safety management system certification 100

The numbers of contractors/subcontractors by region during the reporting period are presented below:

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Region	Number
North China	78
Central China	115
East China	324
South China	44
Northeast China	10
Northwest China	12
Southwest China	13

Promote green procurement

Green procurement is an important part of the Group's "Green Enterprise Action Plan", which is incorporated into the "Implementation Plan of Sinopec Engineering Group for Green Enterprise Action" to promote the implementation of the green procurement concept. The Group actively adopts the products in the Recommended Catalogue of Energy-saving Mechanical and Electrical Equipment (Products), specifying that it is strictly prohibited to purchase obsolete, backward and energy-consuming materials; at the same time, the energy consumption indicators of equipment and pumps are defined to purchase equipment, motors and materials that meet the quality standards and the green and energy-saving requirements.

70 2021 Environmental, Social and Governance Report

SINOPEC Engineering (Group) Co., Ltd.

ABOUT US TOPIC MANAGEMENT ENVIRONMENT SOCIETY APPENDIX

Improve Product Services

Strictly control product quality

In response to the goal of building national high-quality projects, the Group has always deemed it its duty to build "model projects" and "high-quality projects" to ensure the "safety, stability, long term, full capacity and optimization" of the devices after they are put into operation, and regarded it as its core competitiveness. The Group strictly abides by the Construction Law of the People's Republic of China, the Regulations on Quality Management of Construction Projects, and the laws, regulations, technical standards and regulatory requirements related to engineering quality in the place where the project is located, such as the Road Construction Law of the Kingdom of Saudi Arabia.

The Group continues to promote the implementation of the quality management system, optimizes the project management mechanism and system, clarify job responsibilities, and implements the project process monitoring so as to ensure the delivery quality of each project in an all-round way and continuously improve its project management level, thus establishing a good brand image and market reputation and enhancing its global competitiveness.

During the reporting period, two projects undertaken by the Group won the National Gold Award for Quality Engineering, two projects won the National Silver Award for Quality Engineering, seven projects won quality engineering awards at the provincial and ministerial levels, nine projects won the Sinopec Quality Engineering Award, five projects won excellent design awards at the provincial and ministerial levels, two projects won the first prize for excellent welding engineering, and four projects won the National Excellent Welding Engineering Award.

5 projects won excellent design 2 awards at the provincial and ministerial levels 4 projects undertaken by the Group won the National 7 projects won Gold Award for Quality the National projects won quality Engineering Excellent Welding engineering awards at the provincial and ministerial levels Engineering Award

2 2 projects won 9 projects won the the first prize for National Silver excellent welding projects won the engineering Award for Quality Sinopec Quality Engineering Engineering Award

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Establish the quality management responsibility system	Establish the project quality management responsibility system covering all member enterprises and all levels, and defne the functions and responsibilities of each company, functional department, project manager as well as related jobs.
Promote quality objective management	Formulate the Management Regulations for Quality Objectives, strengthen project quality management, formulate documented quality control plans and project quality management regulations based on the requirements of project contract and project characteristics, and inspect the fulfllment of the objectives on a regular basis.
	Formulate the Quality Management Regulations of Sinopec Engineering
	Group, the Implementation Regulations of Quality Management System, the
Deepen the construction of quality	Management Regulations on Construction Procedures of Engineering Projects, the
management system	Management Regulations on Construction Standards and Norms, and the Manual
	on the Management of International Projects to further deepen the construction
	of quality management system.
	Establish and publish the Company's quality management expert database, in
Establish the quality management	which 100 quality management experts are selected, with their professional
expert database	composition covering all specialties in refining and chemical engineering
	construction.
	According to the key nodes of project management, the implementation rules
	such as the Manuals on Quality Inspection of Petrochemical Projects (2020
Strengthen on-site engineering quality	Edition), the List of Project Quality Control Points, the Management Regulations
management	of Quality Tour-Inspection and the Engineering Tour-Inspection List of Branches
	were compiled to further standardize the construction level, construction
	procedures and construction process.
	Establish the quality control reporting mechanism, and carry out quality
	inspection on all working procedures, all materials, spare parts and finished
	products through daily inspection, self-inspection, cross-project inspection
Carry out quality verifcation and inspection steadily	and other methods so as to realize early detection, early treatment and early resolution of quality problems. In order to strengthen the quality verification during the implementation of the project, the stay-in-factory and fight inspection methods were adopted to ensure that the equipment and performance meet the
	quality requirements.
	On-site self-examination and self-correction of project quality were carried out,
	with 86 projects inspected by member enterprises.
Strengthen process control of design quality	Compile the Design Quality Control Procedure , and specify the quality requirements in design planning, design input, design control, design output and design modifcation.
	Formulate management methods and control procedures such as the
	Management Regulations of Sinopec Engineering Group on Quality Accidents, the
	Management Regulations of Sinopec Engineering Group on Welding Quality Flight
	Inspection (Trial), the Management Regulations of Sinopec Engineering Group on
	Quality Supervision and Inspection of Construction Projects (Trial), the Control
	Procedures for Nonconforming Products and the Corrections and Management
	Procedures for Corrective Measures.
Improve the mechanism of handling	Set the project quality complaint management objectives, establish a layered
engineering quality problems	handling mechanism to supervise and solve the complaint problems, formulate
	special rectification measures and corrective and preventive measures for
	the links where problems occur repeatedly in the project, and publicize the
	importance of learning among construction workers and technicians so as to
	avoid the re-occurrence of the previous problems.
	Complete the collection, sorting-out and sharing of the welding procedure qualifcation report (PQR) for overseas projects of the Company; compile and issue the Manual of Common Quality Problems of Petrochemical Engineering Projects.
	Formulate the Work Procedure for Continuous Improvement , and work out
Promote quality improvement	improvement measures from the aspects of work objectives, cost of measures, systematicness and contingency, improved performance, customer satisfaction
	and reputation.

72 2021 Environmental, Social and Governance Report

SINOPEC Engineering (Group) Co., Ltd.

AB��T �� T�P�C

MA�A��M��T

��R��M��T ��C��T� APP��D��

Case

Winning the �ational �old Award for �uality �ngineering

During the reporting period, the project of 1.7 million tons/year methanol and olefin conversion from Zhong�an �nited Coal Co., �td., in which �inopec �ngineering �ncorporation, a member company of the �roup, was the general contractor, won the 2020-2021 �ational �old Award for �uality �ngineering. As an important strategic layout of energy cooperation between �inopec and Anhui Provincial �overnment, this project has �lled the gap of large-scale polyole�n in Anhui province, and made positive contributions to the clean and efficient utili�ation of coal by �inopec �roup and to promoting the transformation and development of �uainan.

During the reporting period, the �engyi �Brunei� PMB petrochemical project designed by �uang�hou �ngineering Co., �td., a member company of the �roup, won the 2020-2021 �ational �old Award for �uality �ngineering. As the �rst large overseas petrochemical project to fully implement Chinese standards, the largest foreign direct-investment project in Brunei and the largest overseas investment project of Chinese private enterprises, the project has been listed in the �rst batch of �ey �Belt and Road� construction projects.

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Zhong�an �nited Coal-to-Methanol and �le�n Conversion Project

�engyi �Brunei� PMB Petrochemical Project

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The �MP� ��tyrene Monomer-Propylene �xide� project of C��C and �hell Petrochemical Co., �td., which was contracted by Tenth Construction Co., �td., won the Chemical �ndustry �uality �ngineering Award, and Tenth Construction Co., �td. was awarded the titles of ��xcellent Construction Contractor�, ��xcellent Contractor for �afety Production� and ��xcellent Contractor for �uality Management� by C��C and �hell Petrochemical Co., �td.

The �� device in the integration project of Zhong�e Re�ning and Chemical Co., �td. underta�en by Fifth Construction Co., �td. wins the First �ational Award for Welding �xcellence

En�ineerin� ��alit� o��ective� ��l�llment o� t�e o��ective� in 202�

The �ualification rate of unit engineering �uality was 100��

Delivered 855 unit projects throughout the year, with a �uality �uali�cation rate of 100��

The review rate of technical design schemes determined in project planning or implementation schemes was 100��

1,822 technical design schemes were determined in the project planning or implementation schemes, with a review rate of 100��

The manufacturing supervision rate of Class A materials 2,209 units of Class A materials were supervised, with a supervision and the warehousing inspection rate of e�uipment and rate of 100�, and 75,066 batches of e�uipment and materials were materials were 100�, and the �uali�ed rate of the entryput into storage for inspection, with an inspection rate of 100�, and into-warehouse acceptance of materials was � 98�� the �uali�ed rate of arrival acceptance of materials was � 98�� The one-time pass rate of welding �lm was �96.1�, With 1,295,�00 welding joints, the one-time pass rate of welding and the one-time pass rate of welding joint was � reached 96.25�. With 6.195 million pieces of welding �lms, the one91.5�� time pass rate of welding joints reached 98.5��

The one-time pass rate of the inspection points of Project A and B was � 98��

A total of �72,�00 points of Project A and B were inspected, with a one-time pass rate of 99.76��

Case Promote the application of intelligent welding robots to create high-�uality projects

�n order to improve the existing welding e�uipment and welding technology level, and reduce the labor intensity and construction ris� of manual welding at the project site, �inopec Fifth Construction Co., �td., a member company of the �roup, in conjunction with scienti�c research institutes, developed the �trac�less, all-position crawling welding robot� project in the oil and gas and chemical �elds, and successfully completed the industrial application test at the �anjing project site of the �roup. The test showed that the application of the trac�less, all-position crawling welding robot can greatly improve the welding e�ciency, reduce the construction cost and avoid potential �uality ha�ards. The trac�less, all-position crawling welding robot was widely used in the integration project of Zhong�e Refining and Chemical Co., �td., ma�ing significant contributions to creating �uality projects.

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Pan �iluan, professor of Tsinghua �niversity,funder of China�s welding industry, promoting a lot to the study of crawling welding robot

�i� into over�ea� ��ine��

The �roup vigorously promotes the mar�et development along the �Belt and Road� route, gives full play to the synergy advantages of the Company�s industrial chain, technology chain and business chain, promotes the application of advanced engineering technologies and management concepts, provides clients with a �one-stop overall solution� from technical consulting, feasibility study, financing arrangement and implementation � planning, and ma�es all-out efforts to push oil refining and chemical technologies, projects and e�uipment services to go global, promotes the coordinated development of the host country�s economy, environment and society, and boosts the Company�s international brand image and social reputation. At the same time, the �roup has been actively establishing sound and stable cooperative relations with internationally renowned engineering companies, design companies and strategic partners to complement each other�s advantages and jointly explore the mar�et.

During the reporting period, the �roup implemented a total of 57 projects in 15 foreign countries, with the overseas income reaching RMB �.639 billion and the value of newly signed overseas contracts totaling RMB 8.679 billion.

implemented a total of with the overseas the value of newly projects in 15 foreign income reaching RMB signed overseas countries contracts totaling RMB 57 4.639 billion 8.679 billion

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The success rate of one-time commissioning �or put Completed 2� �PC general contracting projects, with a success rate of into use� of �PC general contracting projects was 100�� one-time commissioning �or put into use� being 100�� o �uality accidents were reported, and no complaints �o �uality accidents were reported, and no complaints made about made about major �uality problems. major �uality problems.

�� 2021 Environmental� Social and Governance Report

AB��T ��

T�P�C MA�A��M��T ��R��M��T ��C��T�

APP��D��

�inopec�s �-MT� complete-set technologies went global for the �rst time

Case

After overcoming various di�culties caused by the pandemic, �inopec �ngineering �ncorporation, a member company of the �roup, successfully won the bid for the patent of MT� unit in ��be�istan�s natural gas complex project in three months, mar�ing that �inopec�s �-MT� �Methanol to �le�n� complete-set technology with independent intellectual property rights went global for the �rst time. At the same time, the successful bidding of the project has achieved the brea�through of the Company in the Central Asian mar�et, as well as the high-end development of the Company as a technology leader. �t is of great signi�cance to promoting the �going global� process of re�ning and chemical processes and engineering technologies and to improving the Company�s international competitiveness.

The Malaysia RAP�D Residual �il �ydrogenation Project earned high recognition

Case

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�n �ctober 2021, �inopec �ngineering �ncorporation, a member company of the �roup, completed the upgrading and reconstruction of the materials of the residue oil hydrogenation unit in the RAP�D oil refining and chemical integration project invested and built by Petronas. �ince the �ic�o� of construction, safety has always been put in the first place, and the safety production responsibility system effectively bro�en down and implemented, and the person responsible for safety specified to promote the effective fulfillment of safety responsibilities. �n terms of environmental protection, based on the ��A report, the company formulated a number of environmental protection management rules and regulations and procedural documents to ensure compliance with laws and regulations. The project invited a third-party institution to carry out water �uality and soil monitoring and noise monitoring� invited service providers to sort out and recycle garbage, and sprin�le water to remove dust� and compiled the monthly environmental monitoring report and submitted it to the proprietors and government departments for review. The compliance rate reached 100�.

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accumulated safety man-hours 15[million]

Petronas highly recogni�ed the project and commended �inopec �ngineering �ncorporation for its accumulated 15 million safety man-hours.

The �rst process module of the Canada-based �� project reali�ed high-�uality delivery

Case

The Canada-based �� project is another super-large �� core process module construction project underta�en by China after the successful delivery of the world�s �rst polar �� amal project in 2017. During the reporting period, A5�A, the �rst process module of the Canada-based �� project underta�en by �inopec Fourth Construction Co., �td., a member company of the �roup, was completed and delivered in �ingdao on time. �t was the module of the Canada-based �� project that started construction �rst, completed construction �rst and went to sea �rst. The reali�ation of �20,000 safety man-hours mar�s the major progress of the world�s first integrated �� plant. China�s �� industry chain construction and service capability has reached the international leading level, and �inopec Fourth Construction Co., �td. won the Canada-based �� Project �utstanding �afety Contribution Award.

Sa�e��ard client�� ri��t� and intere�t�

�n accordance with the re�uirements of the Contract �aw of the People�s Republic of China, the �roup never discloses the commercial secrets of the two parties to the contract, and �eeps the technical secrets in accordance with the �aw of the People�s Republic of China on Promoting the Transformation of �cienti�c and Technological Achievements in terms of the transformation of scienti�c and technological achievements� in terms of advertising and use of labels, strictly abides by the Advertising �aw of the People�s Republic of China and the relevant laws and regulations of the place where the project is located, such as the Commercial �nformation �aw of the �ingdom of �audi Arabia, and provides clients with accurate and true information. �n addition, in terms of brand building, the �roup has formulated the �� Manual and �nstructions to standardi�e the use of brand logos.

�n terms of information security, the Company has formulated the Management Regulations of �inopec �ngineering �roup on �nformation �ecurity, the Management Regulations of �inopec �ngineering �roup on Protection of �etwor� �ecurity �evels, the Management Regulations of �inopec �ngineering �roup on �nformation and Digiti�ation and the Management Regulations of �inopec �ngineering �roup on Computer ��uipment, re�uiring all �le clients to use high-level document encryption measures to prevent data lea�age. All e�uipment related to technology and sensitive information should adopt the management measures of closing � port and using encrypted � dis� to improve the management level of information security and privacy protection.

�d�ere to �nnovation��a�ed �evelopment

The �roup vigorously implements the innovation-driven development strategy, puts innovation at the core of the Company�s overall development, and adheres to innovation-driven development to improve the �uality and e�ciency of development.

�oc�� on �cienti�c re�earc�

The �roup continues to intensify technical research efforts, actively supports major national science and technology projects, underta�es �ey science and technology projects entrusted by �inopec �roup, leverages its professional advantages, studies speciali�ed topics, and promotes the development of the industry� continues to strengthen cooperation with �inopec Research �nstitute, and actively promotes the transformation and industriali�ation of scienti�c and technological achievements. During the reporting period, we invested RMB 2.379 billion in scienti�c and technological research and development, and the 38 national-level projects, 22 �ey projects and 20 major projects of �inopec �roup went smoothly. �nnovation achievements won 92 �times� of the scienti�c and technological progress awards at the provincial and ministerial levels, and won 1 �rst pri�e of the �ational �cienti�c and Technological Progress Award, � first pri�es, 7 second pri�es and 5 third pri�es of the �inopec �cientific and Technological Progress Award.

� For more details, please refer to Topic 1 in this report.

invested in scienti�c and technological the national-level �ey projects major projects of �inopec research and development RMB projects �roup went swimmingly 2.379[billion] 38 22 20 irst pri�es of the �inopec second pri�es of the �inopec third pri�es of the �inopec �cienti�c and Technological �cienti�c and Technological �cienti�c and Technological Progress Award Progress Award Progress Award 4 7 5

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�rotect intellect�al propert� ri��t�

The �roup strictly abides by the Patent �aw of the People�s Republic of China and other local laws and regulations related to intellectual property protection. During the reporting period, four relevant management systems were revised and improved, including the Patent Management Regulations of �inopec �ngineering �roup, the Management Regulations of �inopec �ngineering �roup on �ntellectual Property Protection, the Management Regulations of �inopec �ngineering �roup on Technical Confidentiality Agreements and the Management Regulations of �inopec �ngineering �roup on Proprietary Technologies, so as to continuously improve the intellectual property management system and ensure that intellectual property rights cannot be infringed.

During the reporting period, �inopec �ngineering �ncorporation, a member company of the �roup, passed the certification of the �Management �tandards of �nterprises on �ntellectual Property Rights� and obtained the certificate of intellectual property management system certi�cation which was planned to be promoted in the �roup in an orderly manner to ensure the e�ective operation of the intellectual property management system. �hanghai �ngineering Co., �td., a member company of the �roup, organi�ed the annual e�ective patent value evaluation, de�ned the grades for classi�ed management, continuously communicated with patent agents, e�ectively simpli�ed patent disclosure materials, and further stimulated the enthusiasm of technical personnel to apply for patents which were planned to be promoted in the �roup in an orderly manner.

The certificate of intellectual property management system certi�cation awarded to �inopec �ngineering �ncorporation

�6 2021 Environmental� Social and Governance Report

AB��T �� T�P�C

MA�A��M��T ��R��M��T ��C��T� APP��D��

During the reporting period, the �roup completed 681 new patent applications, including �76 invention patents� �22 authori�ed patents, including 171 invention patents� 3,502 Chinese patents, including 1,281 invention patents� 20 technical standards for design and 30 technical standards for manufacturing. The patent �a condensing system and method for the evaporation of li�ue�ed natural gas� won the China �xcellent Patents Award.

the �roup completed new including authori�ed including patent applications invention patents patents 681 476[�] 422 171

authori�ed including patents invention patents

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�dvance di�ital tran��ormation

The �roup vigorously promotes digital transformation and intelligent upgrading. Relying on emerging technologies such as arti�cial intelligence �A��, big data, cloud computing and bloc�chain, and in accordance with the new model of �data + platform + application�, we promoted the construction of networ�ed, digital and intelligent platforms in a coordinated manner, reali�ed the integration of digital technology and business management, strengthened the capacity building of modular design and modular construction, promoted the innovation of production organi�ation methods and operation management models, reali�ed the optimi�ation of resource allocation, coordinated and e�cient production, thus improving �uality and e�ciency and contributing to the green development of the enterprise.

During the reporting period, we deepened the application of digital engineering technology. We promoted the top-level design of re�ning and chemical engineering business domain in an orderly manner and implemented the wor� plan of �regional leader� responsibility system� and promoted integrated design, digital delivery, integrated project management and visual construction in an all-round way. The project �Construction and �mplementation of �oal-oriented �ntelligent �ntegrated Management �ystem� won the �rst pri�e of �inopec Management Moderni�ation �nnovation Achievements Award. �ew brea�throughs have been made in the application of engineering digital twin to smart factory, and nearly 30 digital delivery projects are underway.

Case Build an ecosystem of �digital construction of the whole life cycle of the project�

Relying on the projects of Zhong�e, Zhongsha, �ulei, Zhenhai, etc., �inopec �ngineering �ncorporation, a member company of the �roup, applied digital technology in consulting, design, procurement, manufacturing, construction, delivery, operation and maintenance from the early planning and simulation stages, and wor�ed with participants at all stages of construction to build the digital construction ecosystem of the whole life cycle of the factory. Accurate data services facilitated modular construction and intelligent construction, further reduced the consumption of construction materials and labor intensity and safety ris�s of on-site operations, and improved the construction environment. At the same time, the digital delivery successfully created the data base of the digital twin factory, reduced the construction cost of the smart factory of the production enterprise, and improved the safety, environmental protection, high e�ciency and intelligent operation level of the factory.

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Case The intelligent collaborative design platform e�ectively improves design e�ciency

�uang�hou �ngineering Co., �td., a member company of the �roup, developed an intelligent collaborative design platform and successfully applied it. The platform has opened up cross-specialty data transmission, and improved the �uality of 3D modeling. Through the application of visual model chec�ing, collision inspection and optimi�ation of design scheme, the efficiency of designing construction drawings has been substantially improved, with outstanding improvement in design �uality, and the drawing depth and design �uality improved. The wor� e�ciency of professional designers has been increased by more than 20�, and the design modi�cation on the project site lowered by more than 30�.

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----- Start of picture text -----

more than more than
the wor� e�ciency the design
of professional 20% modi�cation on the 30%
designers has been project site lowered
increased by by
Two-dimnsional collaborative design Three-dimensional
collaborative design
Aspen plus� C�M�� C�M�� P P��D �P�/�P��
Proll�Promax F��D ��C
Process Automatic �nstru- Tubing
Process, Process, Automatic �torage control ment and ��uipm
storage and storage and control and �lectric meter �3D ent
transportation transportation, �lectric transportation �torage PDM� Civil
e�uipment, and enginee-
machinery, transpo-rtation �nviro- ring
heating furnace nment
Design data middleground ��P Foundation�
Project design management information system
Digital delivery
----- End of picture text -----

Case �uccessfully apply the pipeline re�ned design model and contribute to the digital delivery of devices

�n order to promote the modulari�ation and prefabrication scale of pipeline installation in the construction site, and contribute to the digital delivery of devices, �inopec Fifth Construction Co., �td., a member company of the �roup, introduced the speciali�ed software of pipeline re�ned design, and formed a dedicated re�ned design model to continuously accelerate the digital transformation. During the reporting period, the model was successfully applied in the 1 million tons/year ethylene and re�nery reconstruction and expansion project of �inopec �ainan Re�ning � Chemical Co., �td., and the re�ned design of 23,000 drawings on the site was completed in about 3 months, which not only ensured the construction progress, but also laid a solid data foundation for the digital delivery of devices.

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�8 2021 Environmental� Social and Governance Report

AB��T �� T�P�C MA�A��M��T

��R��M��T ��C��T� APP��D��

Serve t�e �omm�nitie� ��ole�eartedl�

Always ta�ing �bene�ting from the society and repaying the society� as its starting point and �nishing point, the �roup actively ful�lls the concept of a �Community of �hared Future for Man�ind�, adheres to repaying the society, gives full play to its own strengths, and participates in community construction to build and share harmonious communities.

We actively carry out consumption-based assistance and education-based assistance. When purchasing employee welfare products, as well as other goods given to help those in di�culties, we gave priority to purchasing rural revitali�ation products. We organi�ed our employees to donate boo�s to the Petrochemical Middle �chool in Dongxiang County, �ansu Province. �early 300 donated boo�s were collected, ma�ing positive contributions to the economic development and educational revitali�ation of the rural revitali�ation areas.

We vigorously carry forward the volunteer spirit of �dedication, friendship, mutual assistance and progress�, encourage employees to carry out volunteer services, and organi�e volunteers to go into communities, schools, and counties enjoying paired-up assistance in poverty alleviation so as to show love and pass on positive energy.

We systematically ma�e donations to help those in need. �nder the policy re�uirements of the Public Welfare Donation �aw of the People�s Republic of China, the �otice of the �tate-owned Assets �upervision and Administration Commission of the �tate Council on �trengthening the Administration of Donations by Central �nterprises, and the �upplementary �otice on the Administration of Donations by Central �nterprises, and in accordance with the Management Regulations of �inopec �roup on Donations, we have improved the Company�s donation system, strengthened the management of donation projects, and strictly implemented the approval process of donations. During the reporting period, our donations totaled RMB 865,000, including supporting the reconstruction after the rainstorm in �enan and the development of education and medical care in rural revitali�ation areas. The project turned out to be �uite fruitful, deepened the relationship between the enterprise and local governments.

At the project construction site, we gave priority to hiring local people, paid attention to training local employees and created more job opportunities for local residents. We respected the cultural customs and habits of residents in the business area, strictly implemented international conventions on environmental protection, protected the local environment, helped improve the living conditions of residents around the project, and built beautiful homes together with local residents.

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nearly donated boo�s were our donations totaled RMB collected 300 865,000

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Case The ��imulation of Reality� �afety �ducation Base trains thousands of primary and middle school students for free every year

Actively assuming its social responsibilities, �inopec Fifth Construction Co., �td., a member company of the �roup, has wor�ed with many local schools in �uang�hou, where the company is located, made full use of the resources of its own safety education base, and launched the �simulation of reality� safety education and learning activities, training thousands of primary and secondary school students for free every year, thus enhancing the safety awareness of the students.

�sing modern technologies, the Base has developed and built �ve functional areas such as the Theoretical Training Area, the �ands-on Training Area and the �imulated Field �ands-on Training Area, involving more than 30 �inds of training modules, including high-altitude operations, hoisting, and con�ned space. Trainees can experience immersive education and training through physical operation and display, simulated �eld operation, accident experience, virtual simulation training and other methods, which further deepened their understanding of safety �nowledge and helped them draw on lessons from accidents, thus improving their safety awareness, self-rescue s�ills.

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�olunteers from �uang�hou �ngineering Co., �td. carrying out loving activities in the primary school in Miaowan �illage, �antun Town, Ruyang County

�anjing �ngineering Co., �td. carrying out voluntary activity to serve local people

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The �uwait Project Department of �inopec Fourth Construction Co., �td. cleaning up the domestic garbage on the beach near the camps on wee�ends

�uang�hou �ngineering Co., �td. organi�ing local calligraphers in �enan Province to go to counties enjoying paired-up assistance in poverty alleviation to contribute to the cultural revitali�ation in rural areas

80 2021 Environmental� Social and Governance Report

8�

SINOPEC Engineering �Group� Co�� Ltd�

ABOUT US TOPIC MANAGEMENT ENVIRONMENT SOCIETY APPENDIX

Appendix

Paraphrasing

Key Performance

Environmental performance

Greenhouse gas emissions

China Petrochemical Corporation: Sinopec Group

Sinopec: Sinopec Group and/or Sinopec Corp. and its subsidiaries and branches The Company: Sinopec Engineering (Group) Co., Ltd.

The Group: the Company and its subsidiaries and branches Engineering Incorporation Ltd.: SINOPEC Engineering Incorporation Ltd.

Guangzhou Engineering Co., Ltd.: Sinopec Guangzhou Engineering Co., Ltd. Shanghai Engineering Co., Ltd.: Sinopec Shanghai Engineering Co., Ltd. Ningbo Engineering Co., Ltd.: Sinopec Ningbo Engineering Co., Ltd. Nanjing Engineering Co., Ltd.: Sinopec Nanjing Engineering Co., Ltd. Fourth Construction Co., Ltd.: Sinopec Fourth Construction Co., Ltd. Fifth Construction Co., Ltd.: Sinopec Fifth Construction Co., Ltd. Tenth Construction Co., Ltd.: Sinopec Tenth Construction Co., Ltd.

Heavy Lifting and Transportation Co., Ltd.: SINOPEC Heavy Lifting & Transportation Co., Ltd.

Energy Management Co., Ltd.: SINOPEC Energy Management Technology Service Co., Ltd. R&D Center: Luoyang R&D Center of SINOPEC Engineering (Group) Co., Ltd. ITC Center: Information Technology Branch of Sinopec Engineering (Group) Co., Ltd.

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Indicator Unit 2021 2020 2019
Total greenhouse gas emissions Ton CO2e 111,873.76 115,798.39 179,010.08
Scope 1 of the total amount of
Ton CO2e 46,848.89 52,728.27 116,439.97
greenhouse gas emissions
Scope 2 of the total amount of
Ton CO2e 65,024.87 63,070.12 62,570.11
greenhouse gas emissions
Per unit revenue of greenhouse
Ton CO2e/RMB 100 million 193.69 221.19 342.53
gas emissions
----- End of picture text -----

Energy and resource consumption

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Indicator Unit 2021 2020 2019
Diesel consumption Ton 9,425.57 10,566.18 20,737.24
Gasoline consumption Ton 3,337.56 3,032.37 7,118.00
Natural gas consumption Cubic meter 455,314.89 325,463.98 499,126.44
Liquefied petroleum gas Ton 337.42 1,711.38 5,681.15
consumption
Acetylene consumption Ton 2,473.22 1,423.87 3,250.89
Propane consumption Ton 304.00 132.35 77.41
Net purchased power
Megawatt hour 95,247.97 92,107.93 95,976.68
consumption
Net purchased heat consumption Megajoule 63,833.22 63,830.09 26,768.75
Total amount of comprehensive
energy consumption converted Ton of standard coal 51,006.33 47,360.45 87,727.35
into standard coal
Per unit revenue of comprehensive Ton of standard coal/
88.31 90.46 167.86
energy consumption RMB 100 million
Total consumption of water
Ton 6,226,047.49 5,129,561.71 3,827,827.58
resources
Consumption density of water
Ton/RMB 100 million 10,779.17 9,798.03 7,324.44
resources
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ABOUT US TOPIC MANAGEMENT ENVIRONMENT SOCIETY APPENDIX

Social performance

Sewage and waste discharge

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Indicator Unit 2021 2020 2019
Amount of hazardous waste
Ton 982.64 879.10 1,336.62
produced
Discharge density of hazardous Ton/RMB 100
1.70 1.68 2.56
waste million
Treatment rate of hazardous waste % 100 100 100
Amount of harmless waste
Ton 51,314.78 62,267.67 64,405.38
produced
Discharge density of harmless Ton/RMB 100
88.84 118.94 123.24
waste million
Treatment rate of harmless waste % 100 100 100
Total amount of sewage produced Ton 2,504,743.07 4,338,861.09 3,387,082.81
Ton/RMB 100
Density of sewage produced 4,336.47 8,287.70 6,481.09
million
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Employment

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Indicator Unit 2021 2020 2019
Number of employees / 16,973 17,301 17,450
Of which: domestic employees / 16,428 16,778 16,728
Overseas employees / 545 523 722
Of which: male employees / 12,436 12,698 12,762
Female employees / 4,537 4,603 4,688
Of which: number of employees aged 30 and below / 1,995 1,955 1,706
Number of employees aged 31-50 / 10,191 10,846 11,407
Number of employees aged 51 and above / 4,787 4,500 4,337
Of which: people with a Master's degree / 2,987 2,798 2,531
People with a Bachelor's degree / 7,807 7,930 7,817
People with a junior college degree / 2,849 2,928 3,021
People with other academic degrees / 3,330 3,645 4,081
Number of employed persons during the reporting
/ 507 743 354
period
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Occupational health and safety

Indicator	Unit	2020	2019
Number of regular employees injured at work	/	3	1
Number of regular employees killed at work	/	0	0
Proportion of regular employees killed at work	％	0	0

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Supply chain

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Indicator Unit 2021 2020 2019
Number of suppliers who have passed
qualification examination / 3,041 2,956 2,875
Number of contractors/subcontractors passing
environmental management system certification / 596 553 511
Proportion (%) of contractors/subcontractors
passing environmental management system certification % 100 100 100
Number of contractors/subcontractors passing
quality management system certification / 596 553 511
Proportion (%) of contractors/subcontractors
passing quality management system certification % 100 100 100
Number of contractors/subcontractors passing
occupational health safety management system certification / 596 553 511
Proportion (%) of contractors/subcontractors
passing occupational health safety management system certification % 100 100 100
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Employees' training

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Indicator Unit 2021 2020 2019
Vocational training input RMB 10,000 4,336 3,684 4,396
Total length of employee vocational training 10,000 hours 83 88 87
Average length of employee occupational training Hour 49 51 50
Total number of employees participating in training / 35,898 36,555 42,029
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Public welfare

Indicator	Unit	2021	2020	2019
Total amount of donations	RMB 10,000	81.5	115	310

In Support of SDGs

SDGs Our action

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Carry out precise poverty alleviation, and help poverty-stricken areas such as Dongxiang Autonomous County in Gansu Province and Ruyang in Henan Province improve their living standards through industry-based poverty alleviation, consumption-based poverty alleviation, education- and culture-based poverty alleviation, infrastructure-based poverty alleviation and medical-based poverty alleviation.

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Improve rural infrastructure such as water and roads, and carry out poverty alleviation projects such as planting, breeding, processing, and online and offline sales based on Dongxiang's natural conditions.

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Ensure employees'occupational health, physical health and mental health, develop a mental health consultation platform, set up health clinics at the construction site of the project, and provide necessary emergency medical equipment and medicines.

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Carry out vocational skills training for employees; give support to the building of schools, provide teaching materials and improve the teaching environment in poverty-stricken areas.

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Observe the principle of gender equality, set up the women workers'committee, and pay attention to the physical and mental health and career development of female employees.

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Develop the technology of comprehensive utilization of wastewater to improve the utilization rate of water resources; build safe water drinking projects in poverty-stricken areas.

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Eliminate coal-fired facilities and adopt clean gas; develop clean energy technologies.

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Provide employees with stable job opportunities, income and working environment; contribute to the local economic development by making investment, paying taxes and providing job opportunities.

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Increase input in scientific research and promote the industrial application of new technologies, new equipment and new materials.

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ABOUT US TOPIC MANAGEMENT ENVIRONMENT SOCIETY APPENDIX

In Support of SDGs

SDGs Our action Child labor and forced labor are prohibited, and no form of discrimination such as gender, religion and nationality is allowed.

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Improve rural infrastructure conditions; actively participate in community anti-pandemic activities at home and abroad and promote social welfare undertakings.

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Implement the responsibility management of suppliers and subcontractors; purchase energy-saving and environment-friendly products.

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Develop low-carbon environment-friendly technology to contribute to the clean transformation of the industry; implement digital projects and promote the intelligent transformation of petrochemical industry.

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Pay attention to the environmental protection around the project. Construction projects involving rivers, lakes and seas should avoid ecologically sensitive seasons such as fish breeding seasons and migration seasons.

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Adjust the construction time and method of engineering construction, and pay attention to biodiversity protection.

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Observe business ethics, promote transparent procurement and implement anti-corruption measures.

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Strengthen cooperation with institutions and research institutes at home and abroad, and implement the "Belt and Road" strategy.

ESG-GRI Index

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SEHK GRI Disclosure Media
Classification
General disclosure
Those involve the emission of waste gases and greenhouse
gases, the discharge of pollutants into water and land, and the
generation of hazardous and harmless wastes: 37
(a) Policies; and
(b) Information on compliance with relevant laws and regulations that have a significant impact on the issuer.
A1.1 Type of emissions and relevant emission data. 38
A1.2 Total emissions (ton) and density (if applicable) (calculated
on basis of each generation unit or each facility) of greenhouse 302-1、302-3、 38
gases directly generated (Range 1) and indirectly generated by 302-4、302-5、
A1 Emissions energy (Range 2). 305-7、306-1、
306-2
A1.3 Total amount (ton) and density (if applicable) (calculated on
38
basis of each generation unit and each facility) of hazardous wastes.
A1.4 Total amount (ton) and density (if applicable) (calculated on basis
38
of each generation unit and each facility) of non-hazardous wastes.
A1.5 Description of the emission targets set and steps taken to
37
achieve them.
A1.6 Description of measures of disposing of hazardous and non-
hazardous wastes, and description of the waste reduction goals 37
established and steps taken to achieve them.
General disclosure
Policies of effective use of resources (including energy, water 42
and other raw materials).
A2.1 Total consumption (in 1,000 kwh) and density (calculated
on basis of each generation unit or each facility) of direct and/or 43
indirect energy by type (e.g. electricity, gas or oil).
A2.2 Total water consumption and density (calculated on basis 302-1、302-3、
43
A2 Use of resources of each generation unit or each facility). 302-4、302-5、
305-7、306-1、
A2.3 Description of benefit goals of use of energy established 306-2
42-43
and steps taken to achieve them.
A2.4 Description of any problem in gaining applicable water
sources, benefit goals of use of energy established and steps 42-43
taken to achieve them.
A2.5 Total amount (ton) of packaging materials used for finished N/N
goods and amount per generation unit (if applicable).
General disclosure
34
303-1、303-2、
A3 Environment Policies on reduction of significant impacts caused by the issuer on the environment and natural resources.
303-3、304-1、
and natural
304-2、304-3、
resources
A3.1 Description of significant impacts of business activities on the environment and natural resources, and actions that have 304-4 32-36
been taken on control of relevant impacts.
General disclosure
Policies for identifying and coping with major climate-related 305-1、305-2、 46
A4 Climate change issues that have and may have an impact on the issuer. 305-3、305-4、
305-5
A4.1 Description of major climate-related issues that have and
46-47
may have an impact on the issuer and the response actions.
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88 2021 Environmental, Social and Governance Report

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ABOUT US TOPIC MANAGEMENT ENVIRONMENT SOCIETY APPENDIX

Classifcation	SEHK GRI	Disclosure Media
B1 Employment and labour conventions	General disclosure Those involve remuneration and dismissal, recruitment and promotion, working hours, holidays, equal opportunities, diversity, anti-discrimination and other treatment and benefts: (a) Policies; and (b) Information on compliance with relevant laws and regulations that have a signifcant impact on the issuer. 102-8、102-41、 401-1、401-2、 401-3、404-1、 404-2、405-1、 403-2、403-3、 403-4 B1.1 Total numbers of staf by sex, type of employment (such as full-time or part-time), age and region. B1.2 Loss rates of employees by sex, age and region.	50
		51
		51
B2 Health and safety	General disclosure Those involve access to a safe working environment and protection of staf from occupational hazards: (a) Policies; and (b) Information on compliance with relevant laws and regulations that have a signifcant impact on the issuer. 403-4、416-1 B2.1 Number and ratio of deaths due to work in the past three years (including the reporting year). B2.2 Number of working days lost due to work injury. B2.3 Description of occupational health and safety measures adopted, and corresponding implementation and inspection methods.	57，63-64
		66
		66
		57-67
B3 Development and training	General disclosure Policies for improving staf's knowledge and professional skills in performing their duties. Description of training activities. 403-4 B3.1 Proportion of employees to be trained by sex and type (e.g. senior management, middle management). B3.2 Average hours for completion of training for each employee by sex and type.	50
		55
		55
B4 Labour standard	General disclosure Those involve prevention of child labour or forced labour: (a) Policies; and (b) Information on compliance with relevant laws and regulations that have a signifcant impact on the issuer. 102-8、102-41、 401-1、401-2、 401-3 B4.1 Description of measures for review of recruitment practices to prevent child and forced labour. B4.2 Description of steps taken to eliminate any breach of regulation discovered.	50
		50
		50
B5 Supply chain management	General disclosure Environmental and social risk policies for managing supply chains. 102-9、308-1、 308-2、414-1、 414-2 B5.1 Number of suppliers by region. B5.2 Description of customary practices on employment of suppliers, number of suppliers subject to practices and corresponding implementation and inspection methods. B5.3 Description of customary practices on identification of environmental and social risk in each link of the supply chain, and corresponding implementation and inspection methods. B5.4 Description of customary practices on promoting the use of environmentally friendly products and services in priority at the time of selecting suppliers, and corresponding implementation and inspection methods.	68
		68
		68
		68
		68

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SEHK GRI Disclosure Media
Classification
General disclosure
Those involve health and safety, advertising, labelling and
privacy and remedies of products and services provided:
72
(a) Policies; and
(b) Information on compliance with relevant laws and regulations that have a significant impact on the issuer.
B6.1 Percentage of products to be recycled due to safety and
N/N
health matters in all products that have been sold or delivered.
B6 Product B6.2 Number of complaints received about products and 102-17 73-74
responsibility services and corresponding responses.
B6.3 Description of customary practices on safeguarding and
77-78
protecting intellectual property rights.
B6.4 Description of quality inspection procedures and product
73
recycling process.
B6.5 Description of protection of consumers' information
and privacy policies, and corresponding implementation and 76
inspection methods.
General disclosure
Those involve the prevention of bribery, extortion, fraud and
money laundering:
23
(a) Policies; and
(b) Information on compliance with relevant laws and
regulations that have a significant impact on the issuer. 102-12、102-
B7.1 Number of corruption lawsuit cases against the issuer 15、102-17、
B7 Anti-corruption or its employees during the Reporting Period that have been 102-30、103-2、 23
prosecuted and closed and the lawsuit results. 205-2、205-3、
412-2、415-1
B7.2 Description of preventive measures and reporting
procedures, and corresponding implementation and 24
inspection methods.
B7.3 Description of anti-corruption trainings provided for
23-24
directors and employees.
General disclosure
Policies for understanding the needs of the community under
operation and ensuring the interests of the community taken 80
into consideration in its business activities through community
participation.
B8 Community
413-1
investment B8.1 Category of devotion and contribution (e.g. education,
environmental matters, labour demands, health, culture and 80
sports).
B8.2 Resources used for category of devotion (e.g. money or
80
time).
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90 2021 Environmental, Social and Governance Report

SINOPEC Engineering (Group) Co., Ltd.

ABOUT US TOPIC MANAGEMENT ENVIRONMENT SOCIETY APPENDIX

TCFD Framework Content Index

==> picture [455 x 402] intentionally omitted <==

----- Start of picture text -----

TCFD-suggested disclosure content Disclosure media
Governance: Disclosure of the governance of the organization related to climate-related risks and opportunities
a Description of the Board's monitoring of climate-related risks and opportunities 5、46
Description of the responsibilities of the management in assessing and managing climate-related
b 22、46
risks and opportunities
Strategy: Disclosure of the actual and potential impacts of climate-related risks and opportunities on the business, strategy and financial planning of the organization
a Description of the organization's identification of climate-related risks and opportunities in the 8、46
short, medium and long term.
Description of the impact of climate-related risks and opportunities on the business, strategy and
b finance of the organization 46
c Description of the strategic adaptability of the organization and consideration of different climate-related scenarios -
Risk management: Disclosure of how the organization identifies, assesses and manages climate-related risks
a Description of the organization's process of identifying and assessing climate-related risks 22、27、46
b Description of the organization's process of managing climate-related risks 22、27、46
Description of how the process of identifying, assessing and managing climate-related risks
c 22、27
integrates with the overall risk management of the organization
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Reader's Feedback Form

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financial planning of the organizationStrategy: Disclosure of the actual and potential impacts of climate-related risks and opportunities on the business, strategy and

a	Indicators and targets: Disclosure of the indicators and targets used in assessing and managing climate-related risks and opportunities	83-84
b	Disclosure of greenhouse gas emissions and related risks in Range 1, Range 2 and Range 3 (if applicable)	37
c	Description of the objectives used by the organization in managing climate-related risks and opportunities, as well as the fulfllment of the objectives	8、37-47

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92 2021 Environmental, Social and Governance Report

SINOPEC Engineering (Group) Co., Ltd.

Address: Building 8, shenggujiayuan, shenggu Middle Road, Chaoyang District, Beijing, the PRC Zip code : 100029 Tel : +8610-5673-0525 Fax : +8610-5673-0500 Web : http://www.segroup.cn

This report is made of environmental paper

AI assistant

Sinopec Engineering Group Co Ltd. — Environmental & Social Information 2022

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