PEAN

中国石化 SINOPEC

Stock Code: 2386.HK

2025

Environmental, Social and Governance(ESG) Report

Sinopec Engineering (Group) Co.,Ltd.

Report Information

This is the 13th Environmental, Social and Governance ("ESG") Report (hereafter the "Report") issued by Sinopec Engineering (Group) Co., Ltd. (hereafter the "Company" or "SEG") since its listing. The Report mainly presents the Company's social responsibility practices and performance in the economic, social and environmental dimensions for the year 2025.

(i) Report Information

Reporting Period: From 1 January 2025 to 31 December 2025 (the "Reporting Period"). Certain information refers to previous years, or is presented in a current, forward-looking manner.

Reporting Cycle: Annual, covering the year 2025.

Reporting Scope: This Report covers the Group's key ESG-related matters and performance during the Reporting Period.

Information Sources: The contents of this Report are compiled from the Company's internal documents, statistical reports and aggregated performance data from its subsidiaries and branches. All information has been reviewed by the Board of Director of the Company. Certain operational and financial data are extracted from the Company's 2025 annual report; in the event of any inconsistency, the 2025 annual report shall prevail. Unless otherwise stated, all amounts disclosed in this Report are denominated in RMB.

Report Availability: This Report is available in both electronic and printed formats. The electronic version can be downloaded from the website of The Stock Exchange of Hong Kong Limited at www.Nexnews.hk and from the "News and Announcements" section of Sinopec Engineering (Group) Co., Ltd. at www.segroup.cn/segroup/en/.

(ii) Compliance Guidelines

This Report has been prepared in accordance with the "Environmental, Social and Governance Reporting Code" of the Stock Exchange of Hong Kong Limited ("HKEK"), with reference to the "GRI Sustainability Reporting Standards 2021" (GRI Standards 2021) issued by the Global Sustainability Standards Board (GSSB), the "ISO 20000 Social Responsibility Guide Standard" and the "International Financial Reporting Sustainability Disclosure Standards" issued by the International Sustainability Standards Board (ISSB), including the "IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information" and the "IFRS S2 Climate-related Disclosures".

(iii) Disclaimer

This report contains forward-looking statements. Except for historical facts, all statements about events that may or will occur in the future (including but not limited to premises, objectives, estimates, and business plans) are considered forward-looking statements. Due to the influence of external variable factors, the actual future development outcomes or trends may differ from those stated in this report. The forward-looking statements in this report were made on 13 March 2026. Unless otherwise required by regulatory authorities, Sinopec Engineering (Group) Co., Ltd. has no obligation or responsibility to update the aforementioned forward-looking statements.

(iv) Reader Feedback

Readers are welcome to scan the QR code below to provide feedback on this Report.

01 Corporate Governance

10 | ESG Management
13 | Corporate Governance System
18 | Compliance and Risk Management

02 Technological Innovation

24 | Technological Innovation Management Mechanism
27 | Leading the Development of Energy and Chemical Industry
31 | Leading the Engineering Construction Industry Toward New Industrialization

03 Climate Action

36 | Climate Change Governance
40 | Energy Conservation and Consumption Reduction Management
41 | Clean Technology Opportunities
44 | Supporting the Development of Clean Energy

04 Environmental Protection

48 | Environmental Management
50 | Pollution Control
53 | Biodiversity Conservation

05 Occupational Health and Safety Management

58 | Occupational Health and Safety Management Framework
61 | Occupational Health and Safety Management of Subcontractors
62 | Security

06 Employee Relations

66 | Protection of Rights and Interests
68 | Talent Cultivation
70 | Employee Wellbeing

07 Social Responsibility

74 | Responsible Value Chain
78 | Community Relations
83 | Philanthropy

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Sinopec Engineering (Group) Co., Ltd.
2025 Environmental, Social and Governance(ESG) Report

Chairman's Statement

Dear Shareholders and Friends,

On behalf of the Board of Sinopec Engineering (Group) Co., Ltd., I would like to express our sincerest gratitude for your continued attention and support.

The year 2025 marks the conclusion of the 14th Five-Year Plan and a pivotal year for the Company in advancing sustainable development. The Company anchored itself to the development vision of Building a World-Leading Technology-Driven Engineering Company, adhered to the development positioning of Technological Innovation + Engineering Services, and continuously enhanced the value creation capabilities in Engineering Services, Technological Innovation, and Capital Operation. We have achieved remarkable development results. Over the five-year period, the Company secured a total of RMB 411.787 billion in new contracts, generated revenue of RMB 301.413 billion, achieved a profit of RMB 11.034 billion, created operating cash flow of RMB 18.265 billion, and distributed dividends of RMB 7.463 billion. While achieving sustainable and steady development, we have created substantial value for the industry, society, and our shareholders and employees.

We have consistently integrated ESG concepts into every aspect of our development strategy, production operations, and management practices, embracing "Low-Carbon, Green, Safe, and Responsible" as the foundation of our development. We are firmly committed to a sustainable development path and respond to the expectations of all stakeholders with concrete actions, earning wide recognition from the industry and society.

Focusing on Corporate Governance to Consolidate the Foundation for Sustainable Development

In 2025, we successfully completed the conversion of shares held by CNPC tradable shares, further optimising our shareholding structure and governance framework. We comprehensively revised the Company's Articles of Association, enabling the Audit Committee of the Board to fully assume the functions of the Supervisory Committee, thereby improving internal control mechanisms and strengthening risk prevention and control. Our industrial layout continued to expand, with the incorporation of Sinopec Environmental Technology Co., Ltd. to establish a professional environmental governance platform, contributing to the protection of clear waters, blue skies, and pure land. The acquisition of equity in East China Pipeline Design Research Institute was completed, further enhancing our comprehensive strength in the pipeline storage and transportation design sector. The Company maintains leading ESG performance, with its Wind ESG Rating consistently at the industry's highest A4 level, and winning the "China Listed Company ESG Annual Best Practice Award" for two consecutive years.

Strengthening Innovation-Driven Development to Forge an Engine of New Quality Productive Forces

Adhering to the philosophy of Open Cooperation and Integrated Innovation, we have deepened the integration of Industry, Academia, and Research with top-tier research institutes and universities, and collaborated with overseas clients and partners to promote advantageous technologies globally. In 2025, we successfully hosted the Sub-Forum on Process Industry Innovation and Process Systems Engineering Reconstruction at the 12th World Congress of Chemical Engineering, bringing together nearly 200 experts, scholars, and corporate representatives from the chemical field worldwide for exchange and discussion, thus building an industry platform for innovation and cooperation. We accelerated the implementation of the digital and intelligent transformation, issuing the Guidelines for the Comprehensive Promotion of the Company's New Industrialisation Framework for the Engineering Construction Industry. We developed a series of replicable and scalable achievements in areas such as intelligent design, machine-assisted manufacturing and digital delivery, promoting the transformation and upgrading of the engineering construction model towards "Standardised Lean Design + Factory-Based Intelligent Manufacturing + Modularised Installation". The application of AI has entered a practical phase. On the design front, efficiency is enhanced through knowledge graphs and generative design. In management, we are advancing intelligent management of the whole life cycle supply chain and the construction of smart sites. In construction, intelligent equipment such as trackless crawling welding robots and multi-axis pipeline welding robots is widely applied, leveraging digital and intelligent empowerment to improve development quality.

Deepening the Green Transition to Enhance the Brand of Premium Projects

We are dedicated to delivering premium projects and benchmark initiatives with ingenuity, supporting the high-quality development of the petrochemical industry globally. In 2025, the ExxonMobil Huizhou Ethylene Project commenced successful operation, creating a model of Global Rules and Chinese Efficiency. The Huajin Aramco Fine Chemicals and Raw Materials Project achieved mechanical completion for all 32 main production units, marking a critical breakthrough in project construction. The world's largest single-site coal-to-stefine project, which we designed, was fully commissioned. We successfully signed a FEED+ convertible EPC contract with Saudi ACWA Power for the Yanbu Green Hydrogen/Green Ammonia Project in Saudi Arabia, planning to construct the world's largest green hydrogen/green ammonia facility. Concurrently, we are systematically advancing our own green transition by scientifically setting environmental protection and energy consumption targets for the 15th Five-Year Plan period, refining carbon emission statistical mechanisms, comprehensively conducting climate risk analysis, and building a comprehensive climate risk prevention and control system. We are steadily promoting green energy projects, including sustainable aviation fuel, natural gas and LNG, green hydrogen-based energy, biomass utilisation, and photovoltaics, continuously improving our green industrial layout and protecting the ecological environment through concrete actions.

Maintaining Strong QHSE Performance and Aligning with Global Sustainability Consensus

We have integrated QHSE management throughout our entire operational process, aiming for Zero Defects and striving to ensure Zero Accidents, Zero Pollution, and Zero Harm. We strictly regulate subcontractor management, strengthen the professional development of grassroots safety teams, and establish a 24/7 overseas health support platform to build a robust safety defence line across all regions. We formulated three green and low-carbon policy documents, including the Guidelines for Green Ecological Design in Refining and Chemical Enterprises. Two of our entities were recognised as Sinopec Green Enterprises. We established eight benchmark green construction sites, with 104 green construction sites passing acceptance inspections. We are advancing the Zero-Waste Group initiative towards higher standards, earnestly implementing measures to reduce carbon emissions, decrease pollution, enhance efficiency, and increase green coverage, thereby practising the concept of global sustainable development.

Charishing a People-Oriented Approach and Fostering Symbiotic and Shared Development

We continuously improve our talent cultivation system, prioritising the development of young talent as an operating focus. We have deepened the implementation of the Seedling Programme, establishing a platform for young talent to engage in cross-regional, cross-business, and cross-departmental exchanges and on-the-job training, thereby stimulating their innovative potential. We actively fulfil our social responsibilities by leveraging our in-house safety training base to cultivate the Immersive Public Safety Education Programme, a branded public welfare initiative, fulfilling our social responsibility. Actively responding to the Rural Revitalisation Strategy, we consistently carry out consumption-based and educational assistance, contributing to the economic development and social progress of rural areas. In our overseas operations, we uphold the principle of inclusive growth, improve community communication mechanisms, respect local cultures and religious beliefs, and actively create employment opportunities in the localities where we operate, achieving coordinated progress and shared development between the enterprise, society, and local communities.

Looking ahead, the green and low-carbon transition of the global energy industry is accelerating, the goal of Carbon-Peaking and Carbon Neutrality is deeply implemented domestically, and the pace of energy transition continues to accelerate. The clean and efficient utilisation of traditional fossil fuels coexists with the large-scale development of new energy. Technologies such as green refining and chemicals, CCUS, hydrogen energy, and bioenergy have become development priorities. This presents both challenges and vast opportunities for us. Currently, the Company has formulated and obtained Board approval for the 15th Five-Year Development Plan Outline, which defines the seven major development strategies of Value Oriented, Innovation Drive, Cost Leadership, Digital & Smart Empowerment, Green & Clean, Global Development, and Integration Symbiosis.

In 2026, the Company will strictly implement the decisions and arrangements of the Board, focusing on advancing development initiatives such as strengthening strategic guidance and integrated coordination; continuously promoting innovation-driven development, lean management, digital and intelligent empowerment, and green and low-carbon practices; providing high-level support for the transformation and upgrading of the energy and chemical industry; leading the new industrialisation of the engineering construction sector to a high standard; advancing the internationalisation of engineering construction enterprise operations with high quality and efficiency; and achieving diversified value creation for the listed company. These efforts will enable us to take more solid strides toward building a world-leading technology-driven engineering company.

Dear friends, sustainable development is not only a call of our times but also a corporate mission. Let us join hands, move forward in the same direction, embark on a new journey towards high-quality and sustainable development, and work together to build a green and better future!

JIANG Dejun
Chairman of the Board
Beijing, China
13 March 2026

Sinopec Engineering (Group) Co., Ltd.
2025 Environmental, Social and Governance(ESG) Report

Board's Statement on ESG Governance

The Board of Directors of Sinopec Engineering (Group) Co., Ltd. commits to continuously strengthening its oversight and participation in the Company's ESG-related matters. The Company complies with the requirements of the "Environmental, Social and Governance Reporting Code" issued by the Stock Exchange of Hong Kong Limited and continues to improve its ESG governance framework, actively integrating ESG considerations into major corporate decisions and business practices.

Board's Role in ESG Governance

The Board assumes ultimate responsibility for the Company's ESG governance. The ESG Committee under the Board oversees the Company's ESG commitments and performance on key issues. It collaborates with other specialised committees and management departments to integrate ESG factors into internal control, risk management, strategic planning, performance incentives and other areas, and reports ESG implementation progress and major plans to the Board. The ESG Committee consists of five directors, with the Chairman of the Board serving as the Committee Chair. The Committee meets at least once a year, and additional meetings may be convened as needed. It communicates with the Board on ESG-related matters as appropriate. During the Reporting Period, the ESG Committee convened one meeting.

ESG Governance Policy and Strategy

The Company recognises the potential impact of ESG-related risks and maintains an ESG issues database based on risk identification, macro policies, emerging trends and stakeholder feedback. Through stakeholder surveys and expert assessments, the Company conducts materiality assessments to prioritise these issues and determine the focus areas for ESG governance.

ESG Performance and Progress Review

The Company has implemented a key ESG performance indicator framework covering greenhouse gas emissions, resource consumption, pollutant discharge, occupational health and safety, and integrity and anti-corruption. Progress against these indicators is monitored on a regular basis. The Company integrates ESG performance metrics, including safety standards, environmental protection measures, and compliance requirements, into the evaluation frameworks for key management teams and subsidiaries, ensuring organisational alignment with and accountability for our ESG commitments. To ensure the reliability of its ESG performance indicators, the Company engaged Grant Thornton (Special General Partnership) to provide independent assurance on the Sinopec Engineering (Group) Co., Ltd. 2025 ESG Report and to issue an independent assurance opinion on 17 ESG performance indicators.

The Board of Directors of Sinopec Engineering (Group) Co., Ltd.

13 March 2026

About SEG

Company Profile

The Group is a comprehensive service provider covering the entire energy and chemical industry value chain and full project lifecycles. With over 70 years of history, it operates across multiple industrial sectors, including petroleum refining, petrochemical, aromatics, new coal chemical, inorganic chemical, pharmaceutical chemical, clean energy, storage and transportation facility, as well as environmental protection and energy conservation. The Group is committed to providing global clients with full industry chain services, including engineering R&D, technical consulting, technology licensing, engineering consulting, engineering design, project management, financing and EPC (engineering, procurement and construction) contracting. Its services also cover material procurement, equipment manufacturing, construction and installation, large-scale equipment lifting and transportation, as well as pre-commissioning and start-up services. The Group has delivered, on schedule, hundreds of modern chemical plants featuring large investment scales, complex processes, advanced technologies and high-quality standards for clients in more than 30 countries and regions. Over the years, it has built extensive and stable client relationships and earned significant industrial influence and social recognition.

Organisational Structure

2025 Environmental, Social and Governance(ESG) Report | 07

Development Strategy

The Group's development vision is to "build a world-leading technology-driven engineering company" its development strategy focuses on "Value Oriented, Innovation Drive, Cost Leadership, Digital & Smart Empowerment, Green & Clean, Global Development, and Integration Symbiosis"

Progresses and Achievements in the "14th Five-Year Plan" Period

Total value of newly signed contracts: RMB 411.787 billion.
Total operating revenue reached RMB 301.413 billion, with a net profit of RMB 11.034 billion and a net operating cash inflow of RMB 18.265 billion.
Maintained a dividend payout ratio of 65% for five consecutive years, with cumulative cash dividends of RMB 7.463 billion cumulatively.
Completed the full circulation of shares held by China National Petroleum Corporation, the largest such project among central energy enterprises.
Completed the equity acquisition of East China Pipeline Design Research Institute.
The MSCI ESG rating was upgraded to BB, making the Group the first company in China's engineering sector to reach this rating threshold.
The Group's Wind ESG rating rose to AA, maintaining a leading position within the industry.
Awarded Wind's "China Listed Company ESG Annual Best Practice Award" for two consecutive years.
Selected for the S&P Global Sustainability Yearbook.
Readmitted into Stock Connect, with market capitalisation returning to the HK $50 billion level.
Received an A+ rating for two consecutive years in Sinopec's quality assessment of listed companies.
Received three National Science and Technology Awards. Among them, the project R&D and Industrial Application of Complete Technology for Million-Ton-Scale Ethylene Production from Complex Raw Materials received the First Prize of the National Science and Technology Progress Award (2021).
Achieved industrial application of a series of major technological breakthroughs, including third-generation aromatic hydrocarbon technology, residual oil catalytic cracking (RTC) technology, PAO production technology, 40K large-tow carbon fibre, high-isotactic polybutene-1 technology and megaton-scale green hydrogen project engineering technology.
Established the Key Laboratory for Refining and Petrochemical Process Reengineering and Multi-Energy Coupling Utilisation, the Key Laboratory for Hydrogen Energy Technology, the Key Laboratory for Soil and Groundwater Pollution Prevention and Green Remediation, and the Thermal Power and Water Technology Centre.
New patent applications totalled 2,125, with 4,580 patents granted in total.
Cumulative R&D investment reached approximately RMB 12.1 billion.
Technology development contracts totalling over RMB 2.2 billion were signed. Technology licensing and transfer contracts totalling nearly RMB 2.1 billion were signed.

Innovation Drive

Received 34 National Quality Engineering Awards, including 22 Gold Awards and 89 Provincial (Ministerial) Quality Engineering Awards.
Completed the special research project "Leading the New-Type Industrialisation of the Engineering Construction Industry" and released the Guidelines for the Comprehensive Promotion of the Company's New Industrialisation Framework for the Engineering Construction Industry.
Completed the overall scheme design for China's first 14,000-ton large, combined ring-track crane.
Invested RMB 700 million in advanced tooling, RMB 480 million in heavy lifting and transportation equipment, and RMB 270 million in modular manufacturing.

Note: Unless otherwise stated, the statistical data covers the period from 2021 to 2025.

Digital & Smart Empowerment	- Delivered nearly 60 smart factory projects in total. - Successfully built an Information Architecture 2.0 digital system featuring the "Data + Platform + Application" structure, with seven major application systems supporting the full value-chain business of refining engineering. - Completed the standardisation of 39 business processes for the project management platform. - Completed the Smart Construction Site Platform, covering 18 key business areas and 129 standardised unit processes. - R&D has been completed for multiple scenarios including intelligent safety management, intelligent design generation, intelligent design review, intelligent project management and intelligent Q&A, with a total of 140 information and digitalisation software copyrights, 32 patents and 29 provincial- and ministerial-level honours obtained. - Total investment in digitalisation and information technology development: RMB 710 million.
	- Total investment in and expenditure on clean technologies in 2025 amounted to RMB 1.659 billion. - In 2025, two units were recognised as "Sinopec Green Enterprise Demonstration Units", and 104 construction sites were designated as green construction sites. - Successfully signed the FEED + convertible EPC contract for ACWA Power's large-scale green hydrogen project in Saudi Arabia, which, upon completion, will become the world's largest green hydrogen and green ammonia plant. - Promoted the design and construction of 847 projects involving clean energy technologies such as LNG, hydrogen energy and biomass energy. - Carried out 107 Contract Energy Management (CEM) projects with a total investment of RMB 908 million and achieved a total carbon reduction of 1.69 million tonnes. - Established Sinopec Environmental Technology Co., Ltd. as a dedicated platform for the environmental management business.
Green & Clean	- In 2025, annual overseas revenue reached USD 2.6 billion, representing a year-on-year increase of over 70%. - Established five regional centres for major markets in the Middle East, Central Asia, Africa, Southeast Asia, and the Americas. - Newly signed overseas contracts exceeded USD 16 billion, accounting for nearly 30%. - The unique competitive advantage of "Global Rules + Chinese Efficiency" has gained global recognition. - Five affiliated engineering companies achieved breakthroughs in overseas front-end business.
	- Second projects valued at USD 12.656 billion through consortium arrangements with strategic partners, including the Company's share of USD 5.288 billion. - Global partner suppliers: 4,695; global approved subcontractors: 1,073, including 131 key strategic subcontractors. - Jointly established the Sinopec Energy Conservation and Low Carbon Joint Research Centre with Sun Yat-sen University, and the Biomass Utilisation Joint Research Centre (High-Value Utilisation of Lignin) with Guangdong University of Technology. - Developed branded public welfare initiatives such as the "Immersive Emergency Safety Popular Science Practice" programme and the "Safety + Rural Revitalisation" programme.

CORPORATE GOVERNANCE

Elië Management

Corporate Governance System

Compliance and Risk Management

Supporting UN Sustainable Development Goals:

Sinopec Engineering (Group) Co., Ltd.
2025 Environmental, Social and Governance(ESG) Report

ESG Management

The Group strives to promote the deep integration of ESG factors into its corporate governance framework and continues to refine its ESG governance structure to establish a top-down sustainability management and implementation system.

The Board of Directors serves as the highest decision-making body for ESG governance and is responsible for overall ESG planning and coordination.
The Board of Directors has established an ESG Committee composed of five directors, with the Chairman serving as the Committee Chair. The Committee meets at least once a year to review and make decisions on significant ESG-related matters, review the Group's annual ESG report and provide recommendations to the Board on ESG issues and their implications for other corporate decisions. The Strategy and Development Committee and the Audit Committee also participate in the Group's review and decision-making concerning ESG-related matters.
The ESG Working Group is responsible for coordinating and implementing ESG initiatives, organising ESG work across departments, subsidiaries and institutions, and driving the implementation of key ESG priorities.
The Company and its subsidiaries are responsible for implementing comprehensive ESG practices within their respective scopes of operation.

The Group formulated and issued the Social, Environmental and Governance (ESG) Reporting Management Regulations, establishing standardised tools and procedures for collecting ESG information. In addition, the Group organised targeted ESG training, effectively enhancing ESG management and information disclosure capabilities.

During the Reporting Period, the Company revised the Working Rules of the Board's ESG Committee, further clarifying and expanding the Committee's supervisory scope over key ESG issues and strengthening the Board's overall planning and supervisory functions with respect to ESG governance.

Identification of Key Issues

In 2025, the Group continued to carry out the assessment and identification of key ESG issues.

Identification
Through comprehensive analysis of macro policies, industry trends and peer sustainability benchmarking, the Group identified 16 material sustainability issues that are significant to both the Company and its stakeholders.
Assessment
Stakeholder surveys and expert reviews were conducted to assess the significance of these issues, resulting in a materiality assessment.
Selection
Based on the assessment results, the Group developed a prioritised materiality matrix outlining the key focus areas for ESG governance.

Governance Dimension

1 Development of ESG Management Mechanisms
2 Corporate Governance
3 Compliance and Risk Management
4 Business Ethics and Anti-Corruption Management
5 Technological Innovation

Environmental Dimension

6 Reduce Waste Emissions
7 Energy Conservation, Emissions Reduction and Climate Change Response
8 Clean Technology and Green Engineering
9 Biodiversity Conservation

Social Dimension

10 Community Engagement
11 Social Welfare and Rural Revitalisation
12 Rights and Development
13 Occupational Health and Safety
14 Subcontractor Management
15 Supplier Management
16 Project Quality Management

Sinopec Engineering (Group) Co., Ltd.
2025 Environmental, Social and Governance(ESG) Report

ESG Value Management and Stakeholder Communication

The Group proactively identifies and engages with its stakeholders and has identified five major stakeholder groups through effective communication channels, based on which it develops sustainability initiatives and solutions.

Stakeholders	Key Communication Topics	Communication Channels
Government and Regulatory Authorities	Development of ESG Management Mechanisms	Government Oversight
	Compliance and Risk Management	Daily Communication and Reporting
	Biodiversity Conservation	Project Approval
	Waste Reduction	Statistical Report Filing
Shareholders and Investors	Corporate Governance	Annual Reports and Other Statutory Information Disclosure
	Energy Conservation, Emissions Reduction and Climate Response	Annual Results Announcement
	Business Ethics and Anti-Corruption Management	Capital Market Communication
	Technological Innovation	Website, Hotlines, Visits, and Roadshows, etc.
	Employee Rights and Development	Trade Union
Employees	Occupational Health and Safety	Corporate Culture Activities
	Clean Technology and Green Engineering	Daily Business Communication
Value Chain Partners	Subcontractor Management	Strategic Cooperation Negotiations
	Supplier Management	Questionnaires
	Project Quality Management	News Releases
	Community	Customers Communication and Satisfaction Surveys
Community	Community Outreach	Charitable Activities
	Social Welfare and Rural Revitalisation	Community Outreach Events
		Open Days

During the Reporting Period, the Group successfully hosted the Green Mine and Petrochemical Sustainable Development Forum at the China-SCO Sustainable Development Industry Cooperation Conference.

Corporate Governance System

Corporate Governance Structure

General Meeting of Shareholders

The General Meeting of Shareholders is the highest governing body of the Company. The Company ensures the equal treatment of all shareholders and safeguards their lawful rights and interests. During the Reporting Period, the Company held four meetings, including the general meeting of shareholders and class meetings of shareholders, and reviewed and adopted 15 resolutions.

Board of Directors

The Board has established five specialised committees: the Nomination Committee, the Remuneration Committee, the Strategy and Development Committee, the Audit Committee and the ESG Committee. Leveraging their respective expertise, these committees provide strategic guidance and recommendations to enhance the Board's decision-making process.

Independent Non-Executive Directors fulfil three key roles—participating in decision-making, maintaining oversight and balance, and providing professional advice—while exercising their authority with independence and objectivity. Dedicated meeting mechanisms and support platforms have been established for Independent Non-Executive Directors to safeguard the interests of all shareholders, especially minority shareholders.

Employee representative directors are elected and replaced by employees through democratic processes such as employee representative conferences, representing employees in major corporate decisions, articulating employee concerns and safeguarding their legitimate rights and interests.

Senior Management

The Company's Senior Management team consists of six members. Senior Management report to the Board of Directors to implement Board resolutions and manage business operations. Senior Management are accountable to the Board.

In compliance with laws and listing regulations, the Company has formulated 17 governance policies, including the Articles of Association. The Company also closely monitors domestic and international regulatory developments and refines and updates these policies in a timely manner.

Reventing Conflicts of Interest

The Company requires relevant personnel to uphold integrity in performing their duties, actively identify potential conflicts of interest and maintain impartiality and objectivity. They must avoid situations in which personal interests may conflict with corporate duties.

The Articles of Association stipulate that the Directors and Senior Management must comply with regulatory requirements, avoid conflicts between their personal interests and those of the Company, and must not use their authority for improper gain.

Sinopec Engineering (Group) Co., Ltd.
2025 Environmental, Social and Governance(ESG) Report

Board Development

Effectiveness of the Board of Directors

| Board Meeting Attendance | All Directors diligently discharge their duties, exercise their authority in compliance with laws and the Articles of Association, and implement shareholders’ resolutions.
During the Reporting Period, the Board held nine meetings, reviewed and approved 34 resolutions. For details of the Board attendance rate, please refer to Section “Attendance of the Board Meetings and General Meetings, Report of the Board” of the 2025 Annual Report. |
| --- | --- |
| Other Positions Held by Independent Non-Executive Director | To ensure that Independent Non-Executive Director can effectively fulfil their duties, the Articles of Association states that Independent Non-Executive Director must comply with the HREX Listing Rules and other relevant regulations. |
| Board Elections | Members of the Board are elected by the General Meeting of Shareholders, with each term of office lasting three years and re-election permitted upon expiry.
Candidates for Independent Non-Executive Director may be nominated by the Board of Directors or by shareholders holding more than 1% of the Company’s voting shares, individually or jointly. Other director candidates (excluding Independent Non-Executive Director) may be nominated by the Board of Directors, or by shareholders holding more than 3% of the Company’s voting shares, individually or jointly. The list of director candidates is then submitted to the General Meeting of Shareholders for approval.
Ms. Zhang Xuyan was appointed as an Independent Non-Executive Director of the Fifth Session of the Board of Directors of the Company on 9 May 2025. |

Diversity of the Board of Directors

The Company has established the Board Diversity Policy, which stipulates that nominations and appointments of Board members shall be based on the skills and experience required for effective Board operation, while taking into account diversity objectives and requirements. The Company’s Board diversity considerations include, but are not limited to, professional experience, skills, knowledge, length of service, regional background, cultural background, educational background, gender and age. The current members of the Board come from diverse backgrounds with extensive professional experience across fields including petrochemicals, engineering construction, process safety, project management, green and low-carbon development, finance and ESG, enabling informed decision-making by the Board. The Company actively promotes gender diversity. During the Reporting Period, one female director was added. As of the date of this report, female directors account for 22.2% of the Board.

Independence of the Board

The Board of Directors consists of six Non-Executive Directors, accounting for 67% of the Board, including three Independent Non-Executive Directors. Non-Executive Directors and Independent Non-Executive Directors do not hold any other positions within the Company apart from their directorships. The Board’s Remuneration Committee and the Audit Committee are served by two Independent Non-Executive Directors respectively.

The Company has established the position of Lead Independent Non-Executive Director, which is concurrently held by the Chairman of the Board Audit Committee. The Lead Independent Non-Executive Director is responsible for convening and presiding over meetings of Independent Non-Executive Directors and facilitating communication in three aspects: among Independent Non-Executive Directors, between Independent Non-Executive Directors and other Directors, and between the Company and its shareholders, and acts as a communication channel, enabling shareholders (especially minority shareholders) to understand the actions taken by Independent Non-Executive Directors in fulfilling their duties, and also serves as an intermediary between Directors and shareholders (particularly when general communication channels are insufficient).

Framework for Independent Non-Executive Directors	The Company’s Rules for Independent Director stipulate that Independent Non-Executive Directors shall comprise at least one-third of the Board, and set out provisions regarding their qualifications, nomination, election and removal, duties and rights, and support measures for the performance of their duties.
Election Procedures and Qualifications for Independent Non-Executive Directors	The nominator of a candidate for Independent Non-Executive Director (“Candidate”) shall seek the consent of the nominee, find out the occupation, academic qualification, professional title and working experience including part-time jobs of the nominee, and provide written proofs of the same to the Company before making the nomination; the Candidate shall give a written undertaking to the Company agreeing to be nominated, undertaking the truthfulness, accuracy and completeness of his/her particulars disclosed and guaranteeing the performance of a director’s duties after being elected; the nomination committee of the board of directors shall review the qualifications of the position of nominees and formulate clear review opinions for submission to the board of directors for consideration.
The Candidate shall make a public declaration regarding his/her compliance with independence requirements and other criteria for serving as independent non-executive directors.
Independent Non-Executive Directors are required to conduct an annual self-assessment of their independence status and provide written confirmation to the Company.
Performance of Independent Non-Executive Directors	Independent Non-Executive Directors fulfil their roles in decision-making, maintaining oversight and balance, and providing professional advice by diligently performing their duties and participating in major corporate decisions.
During the Reporting Period, Independent Non-Executive Directors issued opinions on key corporate matters including board nominations, executive appointments, related-party transactions, dividend distributions, auditor responsibilities and share repurchases, exercising their oversight role to protect the interests of the Company and its shareholders.
Independent Non-Executive Directors demonstrated their commitment by conducting thorough research and staying well-informed about the Company’s operations.

Sinopec Engineering (Group) Co., Ltd.
2025 Environmental, Social and Governance(ESG) Report

Board Committees

Names of Committees	Key Responsibilities	Composition and Activities
Strategy and Development Committee	· Responsible for developing the Company's long-term strategic plans and overseeing major capital investment and financing decisions.	· The Committee consists of two Executive Directors, three Non-Executive Directors, and one Independent Non-Executive Director.
· During the Reporting Period, the Committee held one meeting.
Audit Committee	· Responsible for making recommendations regarding the appointment, reappointment or removal of the Company's external auditors and their remuneration; reviewing the financial statements to be submitted to the Board of Directors; and examining the Company's financial policies, internal audit procedures, internal control systems and risk management frameworks.
· During the Reporting Period, the Company dissolved the Board of Supervisors, with the relevant functions taken over by the Audit Committee.	· The Committee consists of three Independent Non-Executive Directors, including one member with accounting or auditing expertise.
· During the Reporting Period, the Committee held two meetings.
Nominations Committee	· The Nomination Committee makes recommendations to the Board regarding director appointments, reappointments and succession planning. It identifies qualified candidates for directorship and nominates or advises the Board of Directors on the selection of such individuals.	· The Committee consists of two Executive Directors and three Independent Non-Executive Directors.
· During the Reporting Period, the Committee held one meeting.
Remuneration Committee	· The Remuneration Committee studies and makes recommendations to the Board regarding the remuneration structure and policies for all Directors and Senior Management. Upon authorisation by the Board, it either determines or makes recommendations regarding the remuneration packages of individual Executive Directors and members of senior management.	· The Committee consists of three Independent Non-Executive Directors.
· During the Reporting Period, the Committee held one meeting.
ESG Committee	· The ESG Committee advises the Board of Directors on major decisions relating to the Company's ESG strategy and development. The ESG Committee oversees the implementation and progress of the Company's ESG development strategies and plans, supervises the Company's commitments and performance on key issues such as climate change, health and safety, labour rights, and clean and green development, and advises the Board of Directors accordingly. The Committee reviews the Company's annual ESG report and provides recommendations to the Board of Directors.	· The Committee consists of three Executive Directors and two Independent Non-Executive Directors.
· During the Reporting Period, the Committee held one meeting.

Management of Remuneration for Directors and Senior Management

The Company has formulated the SEG Senior Management Remuneration Management Measures and the SEG Executives' Performance Evaluation Management Measures. Quantitative indicators include economic performance, operational management, risk control and compliance, key task indicators, as well as ESG-related mandatory indicators such as safety, environmental protection, quality and integrity. Performance-based compensation is awarded based on evaluation results.

The Remuneration Committee makes recommendations to the Board regarding remuneration plans and evaluation matters for Directors and other members of senior management. In determining remuneration, the Remuneration Committee considers factors including the Company's objectives, industry remuneration benchmarks, as well as the responsibilities and performance of Directors and Senior Management. Senior Management remuneration consists of a base salary, performance bonuses, and long-term incentives, with the annual performance bonus accounting for no less than 60% of total annual remuneration.

The Company has established a clawback mechanism for Senior Management performance-based remuneration. According to the SEG Senior Management Remuneration Management Measures and other regulations, for Senior Management who violate state laws and regulations during their tenure or cause losses to the Company assets due to dereliction of duty, the Company will, based on disciplinary results and asset loss responsibility, deduct their current year performance pay and annual salary, or recover part or all of their previously paid annual performance bonuses and term incentive payments. The clawback policy also applies to former Senior Management who have resigned or retired.

Information Disclosure and Investor Relations

The Company strictly complies with disclosure obligations in its listing jurisdictions, refines both the content and format of its disclosures, while continuously enhancing disclosure effectiveness.

The Directors and Senior Management actively engage with investors and other stakeholders, listening to their opinions and suggestions while responding promptly to their concerns. The Company expands the scope and depth of stakeholder communication through various channels including shareholders' meetings, results announcements, roadshows, reverse roadshows, analyst meetings, site visits, hotlines, dedicated sections of the Company's website, and new media platforms, to enhance their understanding of the Company.

Sinopec Engineering (Group) Co., Ltd.
2025 Environmental, Social and Governance(ESG) Report

Compliance and Risk Management

Compliance Management

As of the end of the Reporting Period, the Company, SEI, GPEC and the Saudi Company had obtained ISO 37301 Compliance Management System certification, and had completed annual audits covering compliance management, business ethics and other related management areas.

Compliance System	Formulated the Compliance Guidelines Manual for Engineering Projects in Saudi Arabia and the Compliance Guidelines Manual for Engineering Projects in Kazakhstan, and organised the improvement and certification of the Saudi Company's compliance system.
Compliance Training	Carried out six legal training sessions focusing on the Work Safety Law of the People's Republic of China, Regulations on Ensuring Payment to Small and Medium-sized Enterprises, and other laws and regulations, as well as 16 compliance awareness activities.
Compliance Assessment	During the Reporting Period, the Group organised and completed compliance self-assessments, internal compliance audits, and third-party reviews and renewals of its Compliance Management System certification. No major compliance incidents occurred.

During the Reporting Period, the Saudi Company obtained ISO 37301 certification for its Compliance Management System.

Anti-Corruption Management

The Group continuously strengthens its anti-bribery and anti-corruption systems and procedures, promotes a culture of integrity, and prohibits any form of commercial bribery or corruption in any country or region under any circumstances.

The Group strictly complies with relevant laws and regulations including the "Criminal Law of the People's Republic of China", the "Supervision Law of the People's Republic of China", the "Administrative Punishment Law for Public Officials of the People's Republic of China", and the "Regulations on Disciplinary Actions for State-Owned Enterprise Management Personnel", applicable local anti-bribery, anti-extortion, anti-fraud and anti-money laundering laws and regulations in its operating locations, as well as international conventions such as the UN Convention Against Corruption, while rigorously complying with integrity and anti-corruption regulations of both the Company and its business partners, such as the Sinopec Group Co., Ltd. Employee Disciplinary Regulations, and firmly opposes corruption and unfair competition practices.

The Group has formulated institutional documents including the SEG List of Responsibilities for Strengthening Supervision of the "First-in-command" and Leadership Team, the SEG Implementation Rules for Strengthening Daily Supervision Conversations (Trial), the SEG List of Items for Exempting Leadership Personnel from Fault Liability, and the SEG Registration and Management Measures for Submission of Gifts and Cash Received in Domestic Exchanges, continuously refining its anti-corruption management system and creating a clean and incorruptible business environment.

During the Reporting Period, the Company formulated and issued the Anti-Corruption Management Policy and the Supplier Anti-Corruption Management Policy.

The Group routinely conducts training and education programmes on anti-corruption, embedding integrity reminders and requirements into various training programmes and major event arrangements. The Anti-Corruption Education Month event focuses on targeted education through themed integrity conversations and on-site warning education. The Group also innovatively launched the Family Integrity Day event, as well as other awareness activities such as immersion warning education visits to the anti-corruption base, and displaying integrity culture walls or corners in offices, ensuring that everyone develops a strong awareness of anti-corruption in their minds.

The Group conducts targeted governance initiatives focusing on key areas such as material procurement, subcontractor management and contract asset management, integrating integrity requirements into business processes. The Group conducts internal control and risk management audits of its subsidiaries, urging them to continuously standardise and improve their rules, regulations and business processes. Management improvement initiatives and targeted audits are conducted for key projects to ensure their smooth progress. Supervision initiatives targeting cross-border corruption are implemented to support the development of a comprehensive overseas risk management system.

The Group strictly implements the SEG Management Regulations for Intermediary Fees of Overseas Projects, ensuring rigorous governance of overseas project commissions and intermediary fees. In recent years, unless mandated by local regulations, the Group has rarely incurred commission fees.

The Group strictly implements the Material Procurement and Supply Resource Management Measures, fully realising centralised and digitalised management of the entire process of supplier entry, annual review and exit, preventing supply chain corruption risks from the source. For details, please refer to the section "Social Responsibility - Responsible Supply Chain - Supplier Management" of this Report.

Reporting Channels and Whistle-blower Protection

The Group strictly implements the relevant regulations of disciplinary inspection and supervision authorities on handling reports and complaints, clearly specifying the procedures for handling petitions, reports, and breaches of laws, regulations or disciplinary requirements. We support employees, customers, suppliers, and other external stakeholders in reporting illegitimate or inappropriate activities to us. We have established multiple reporting channels for integrity concerns, including a whistleblowing hotline (010-56730699), reporting mailboxes (located on the west staircase on the 7th floor of the headquarters building), and email addresses, to receive reports of violations and misconduct, and formulated relevant procedures to ensure prompt and proper handling of the reports.

The Group rigorously protects the confidentiality of reports and complaints in accordance with established protocols and regulations. Content of the reported case or personal information of the whistleblower is kept strictly confidential and strictly forbidden to be disclosed to the organisation or individuals who are the subject of the report or complaint. The Group's Integrity and Compliance Management Manual clearly states that retaliatory actions will not be tolerated. If there is intentional disclosure of a reporter's information, or retaliation against individuals who report suspected illegal or irregular conduct or behaviour that may cause company business risks, severe punishment will be imposed. The Group's Integrity and Compliance Management Manual explicitly states that the Group has zero tolerance for retaliation. Severe penalties will be imposed on those who deliberately disclose whistleblower information or retaliate against individuals who report suspected violations or potential business risks.

Business Ethics

The Company has established a business ethics and anti-corruption management framework consisting of the Board of Directors and the Supervision and Audit Department. The Board of Directors is responsible for leading and advancing relevant management initiatives at the corporate level. The Supervision and Audit Department, according to its functions, specifically organises or coordinates relevant implementation efforts, and regularly reports the overall business ethics and anti-corruption performance to the Board. Each subsidiary has its respective supervisory body with dedicated staff or staff with shared responsibilities, which implements relevant business ethics and anti-corruption initiatives.

The Group regularly conducts business ethics-related training, covering employee's professional ethics, anti-corruption, conflicts of interest, insider information protocols and other topics. Each year, all employees are organised to sign the Employee Commitment Letter and participate in awareness campaigns focusing on the content of the Integrity and Compliance Management Manual. A supervision mechanism has also been established to strictly deal with behaviours violating business ethics.

The Group has formulated a comprehensive governance policy system, including our Integrity and Compliance Management Manual, Code of Business Ethics, and Employee Code of Conduct, to regulate corporate and employee conduct as well as business activities. These policies set forth specific requirements regarding safety, environmental protection, employee health and public safety, anti-bribery and anti-corruption measures, information confidentiality, anti-money laundering and insider trading controls, customer rights protection, equity and anti-discrimination practices, conflict of interest management, fair competition practices, and reports handling procedures. An internal review mechanism has been established by the Group to periodically update our business ethics standards, ensuring ongoing regulatory compliance.

Sinopec Engineering (Group) Co., Ltd.
2025 Environmental, Social and Governance(ESG) Report

Regarding conflicts of interest, the Group requires all employees to fulfil their reporting obligations and voluntarily recuse themselves from related decision-making and handling processes.

Regarding insider information, the Group requires Directors and Senior Management to maintain strict confidentiality of non-public information and prohibits the disclosure of such information to any organisation or individual through any means. Employees with access to insider information are prohibited from using such information for securities trading or advising others to trade based on such information.

The Group firmly opposes money laundering and terrorist financing, strictly complying with state laws and regulations, local laws and regulations in our operating jurisdictions, as well as relevant international conventions, requiring thorough due diligence and identity verification of counter parties and business partners, and strictly prohibiting any assistance or facilitation of money laundering or terrorist activities.

Regarding other matters related to business ethics management, please refer to other relevant sections of this Report.

During the Reporting Period, the Company did not experience any major violations or fines in relation to corruption or bribery, unfair competition, conflicts of interest, money laundering, or insider trading.

Tax Management

The Group places great importance on tax compliance and engages professional tax consultants to provide compliance and tax advisory services, so as to ensure strict adherence to tax laws and regulations of all jurisdictions where we operate. The Group discloses its tax compliance status annually through its Annual Report to remain informed of its tax affairs.

During the Reporting Period, the Company was not involved in any significant litigation or arbitration matters related to taxation.

Cyber and Information Security Management

The Group strictly complies with laws, regulations, and administrative provisions regarding cyber and information security. The Group's Cybersecurity and Information Committee, composed of its Senior Management and leadership members from subsidiaries and relevant departments, bears ultimate management responsibility for overseeing cybersecurity-related initiatives.

The Group has formulated and implemented the Cybersecurity Management Regulations of SEG as well as other related information and cybersecurity management systems, continuously formulating relevant technical documents, enhancing the dynamic cybersecurity defence mechanism, strengthening proactive defence and advanced threat protection capabilities, and promoting hierarchical and categorised management of data security.

The Group regularly carries out information and data security trainings, covering information confidentiality, as well as cybersecurity protection and emergency response. The Group has established a reporting mechanism for information security and cybersecurity issues, requiring its employees to safeguard data and information security.

As of the end of the Reporting Period, both SNEC and SNEI had obtained the ISO 27001 Information Security Management System certification. Six subsidiaries have completed the integration of informatisation and industrialisation management system implementation, among which SEI, GPEC, SSEC, SNEI, and STCC received the "AAA" rating for the integration of informatisation and industrialisation management system.

During the Reporting Period, the Group experienced no major information or cybersecurity incidents, nor were customers and employees affected by related cybersecurity incidents.

Risk Management

The Group has established a comprehensive risk management system, strengthening the Company's role as the "Risk Prevention and Control Centre". The Group has established a universal risk classification index, assessing and prioritising risks annually, formulating quantitative and qualitative indicators, setting risk thresholds, regularly monitoring changes in indicators, and formulating relevant response measures. For details of the risk identification results of the Group, please refer to the section "Report of the Board - Risk Factors" in the 2025 Annual Report.

The Group has formulated a series of management policies including the SEG Comprehensive Risk Management Regulations, SEG Major Operational Risk Control Manual, and SEG Overseas Operations Standardisation Framework, establishing robust risk control procedures for both its domestic operations and its international expansion.

Business departments conducting domestic and overseas market development and operation management are the primary entities responsible for risk prevention. Functional departments such as Enterprise Reform and Legal Affairs assist the first line of defence in preventing risks from legal, risk, and compliance perspectives. The Supervision and Audit Department independently audits and evaluates the Company's risks and internal control systems. The Risk Management Committee and subsidiary-level risk management leadership teams maintain ultimate oversight of internal controls over each organization respectively.

The Group's major operational risk monitoring and early warning indicator matrix consists of multiple ESG-related indicators. During the Reporting Period, the structure of the indicator matrix was further refined with the categorisation by both corporate level and project hierarchy.

02 TECHNOLOGICAL INNOVATION

Technological Innovation Management Mechanism

Leading the Development of Energy and Chemical Industry

Leading the Engineering Construction Industry Toward New Industrialization

Supporting UN Sustainable Development Goals:

Sinopec Engineering (Group) Co., Ltd.
2025 Environmental, Social and Governance(ESG) Report

Technological Innovation Management Mechanism

Intellectual Property Protection

The Group strictly complies with the requirements of relevant laws, regulations and regulatory documents, including the "Patent Law of the People's Republic of China". The Group has established a series of management policies, including the SEG Intellectual Property Protection Management Regulations, SEG Patent Management Measures, and SEG Proprietary Technology Management Measures. Regular activities are carried out, including risk monitoring, alignment and updating of management systems, adjustments of patent ownership, and training on intellectual property management.

During the Reporting Period, the Group revised the Guiding Opinions on Promoting the High-Quality Development of the Company's Intellectual Property Work, conducted internal awareness activities, and further improved the intellectual property management system. During the Reporting Period, the Group was not involved in any intellectual property infringement litigation.

During the Reporting Period, the Group filed 762 new patent applications, including 583 invention patents. A total of 307 patents were granted, including 174 invention patents. As of the end of the Reporting Period, the Group held a total of 4,580 patents, including 2,440 invention patents.

New Patent Applications

762 items

New Patents Granted

307 items

Total Patents Owned

4,580 items

As of the end of the Reporting Period, SEI had obtained certification for the Intellectual Property Compliance Management System.

Innovation Management Mechanism

The Group has formulated and implemented management policies such as the Special Action Plan for High-Quality Development and Technological Innovation and the SEG Technical Cooperation Management Measures to continuously enhance its technological development capabilities and market competitiveness. During the Reporting Period, the Group released the Technological Industrial Chain of SEG (Third Edition).

The Group continues to improve the innovation talent incentive system and actively promotes the Innovation Workshop Programme.

The Group has further strengthened external technical exchanges and promoted collaborative innovation among industry, universities, research institutes and application sectors. The Group has carried out technical exchanges and joint research projects with nearly 20 universities and research institutes, including Peking University, Xi'an Jiaotong University, East China University of Science and Technology, and the Institute of Process Engineering of the Chinese Academy of Sciences. These collaborations focus on key areas such as new energy, new materials, energy conservation and environmental protection, with 13 new joint research projects initiated during the Reporting Period.

As of the end of the Reporting Period, the Group had 14 High-Tech Enterprises.

SEM was selected as a National-Level Specialized and Innovative "Little Giant" Enterprise.

Case

SEG Successfully Hosted the Sub-Forum on "Process Industry Innovation and Process Systems Engineering Reconstruction" at the 12th World Congress of Chemical Engineering

The forum focused on key themes such as intelligent manufacturing, digital empowerment, and green and low-carbon development. Nearly 200 experts, scholars, corporate representatives and industry leaders from the global chemical sector attended the forum, jointly exploring new pathways for technological innovation and high-quality development in the industry.

The World Congress of Chemical Engineering is an "Olympic-level" event in the global chemical industry, renowned for its long history and academic leadership, and is held once every four years. This session marked the first time in 50 years that the World Congress of Chemical Engineering and the Asia-Pacific Chemical Alliance Conference were jointly held in China.

SEI established a New Energy Research Centre (Sinopec Key Laboratory for Refining and Chemical Engineering Process Reengineering and Multi-Energy Coupling). The centre focuses on areas such as refining and chemical process reengineering, multi-energy coupling utilisation, resource recycling, and new materials engineering technologies. It places particular emphasis on advancing research on key technologies across the new energy value chain, including the low-cost storage and transportation of hydrogen energy, as well as the integrated application of new energy with petrochemical and coal chemical industries.

中国石垒 SANZONG 我渔批 C油药仓盐 5 8 级露沙林坑 C 双

重点实验室

中国石油化工集团有限公司

二〇二四年二月

Sinopec Engineering (Group) Co., Ltd.
2025 Environmental, Social and Governance(ESG) Report

During the Reporting Period, SEI advanced the development of the National Key Laboratory for Deep Geothermal Enrichment Mechanisms and Efficient Development (Thermal Energy Utilisation Engineering Centre). The laboratory focuses on the efficient and comprehensive utilisation of deep geothermal energy, with particular emphasis on research into key technologies such as steam compression, heat pumps, and geothermal power generation.

The Group has continued to collaborate with Guangdong University of Technology on research into the high-value utilisation of lignin. Kilogram-scale scale-up experiments and product performance evaluations have been carried out, supporting the green and high-value utilisation of biomass resources.

The Group held a thematic exchange titled "Global Perspective in the Chemical Industry" with the Department of Chemical Engineering at Tsinghua University.

Leading the Development of Energy and Chemical Industry

The Group adheres to a technology-driven strategy and leverages the advantages of integrated and collaborative innovation in technological R&D, engineering transformation and engineering design, continuously leading the development of the industry.

Case

ExxonMobil Huizhou Ethylene Project: Showcasing "Global Rules + Chinese Efficiency"

During the Reporting Period, the ExxonMobil Huizhou Ethylene Project, constructed by SEI BEPC under a full plant EPC contract, was officially put into operation. The project is the first large-scale petrochemical project wholly invested by a foreign enterprise in China, and is also the world's largest integrated chemical complex in terms of production capacity.

The project achieved an outstanding safety performance record, receiving the client's Global President Safety Award three times. By showcasing "Global Rules + Chinese Efficiency", the project has successfully set a benchmark project jointly recognised by both Sinopec and ExxonMobil.

Sinopec Engineering (Group) Co., Ltd.
2025 Environmental, Social and Governance(ESG) Report

Case

Huajin Project: Building a "Super Project" for a World-Class Petrochemical Base

All 32 major production units of the Huajin Aramco Fine Chemicals and Raw Materials Project in which the Group participated have achieved mechanical completion. In this project, the Group undertook the construction of 20 main processes units as a major contractor, among which the 1.65 million tonnes per year ethylene unit is currently the largest ethylene unit in China.

Case

Undertaking the World's Largest Green Hydrogen/Green Ammonia Project

During the Reporting Period, GPEC signed a FEED + convertible EPC contract with Saudi ACWA Power for the Yanbu Green Hydrogen/ Green Ammonia Project in Saudi Arabia.

The project, located in Yanbu, Saudi Arabia, will produce green hydrogen using wind and solar power. It is expected to commence commercial operation in 2030. The project is designed to produce 400,000 tonnes of green hydrogen and 2.8 million tonnes of green ammonia annually, making it the largest green hydrogen/green ammonia project currently being planned worldwide.

Case

The 1.2 million tonnes per year ethylene unit of PetroChina Jilin Petrochemical, contracted by SEI, was successfully put into operation. This project marked the first implementation of ethylene technology transfer and EPC general contracting for an ethylene unit within PetroChina.

Case

The Inner Mongolia Baofeng Coal-Based Olefins Project (Phase I), the world's largest single-factory coal-to-olefins project designed by GPEC, has commenced full production. The project's single 1.35 million tonnes per year DMTO-III unit has set a new global record for the scale of a single methanol-to-olefins unit.

Sinopec Engineering (Group) Co., Ltd.
2025 Environmental, Social and Governance(ESG) Report

The Group has carried out targeted research projects focusing on key industry needs, ensuring the efficient advancement of major initiatives. During the Reporting Period, nine projects, including the 50,000 tonnes per year polyolefin elastomer (PDE) industrial demonstration project, were completed and put into operation. In addition, six key projects, including the 500,000 tonnes per year multiphase polypropylene project, successfully achieved their research objectives.

Case

Maoming Vinyl Elastomer Key Technology Development and Demonstration Project Produced Qualified Products

The 50,000 tonnes per year polyolefin elastomer (PDE) industrial demonstration unit, developed and constructed with participation of SEI, was successfully commissioned and put into operation, achieving the localization of key technologies in the high-end elastomer materials sector. As a high-value-added chemical product, vinyl elastomers are expected to promote the transformation of traditional refining and petrochemical industries toward high-end new materials.

China's First 500,000 Tonnes per Year In-Reactor Alloy Technology Polypropylene Unit Commissioned in Zhenhai Base

This technology was developed with participation of SEI. In-reactor alloy polypropylene features excellent impact resistance and balanced rigidity and toughness, and can be widely applied in automotive, home appliances, packaging, and other sectors.

Deoiled Asphalt Gasification Optimization Technology Commissioned at Zhenhai Base

The unit was designed and constructed by SNEC. The project effectively addresses challenges related to the efficient utilization of carbon-containing resources, such as refinery deoiled asphalt and hydrocracking unconverted oil, as well as the treatment of high-COD wastewater and waste liquids. It provides strong support for the development of green enterprises and zero-waste factories.

Hainan Refining & Chemical 60,000 Tonnes per Year PBST Biodegradable Material Demonstration Project Achieved Full-Process Operation

This technology was jointly developed with the participation of SSEC. Following commissioning, the project has effectively strengthened the biodegradable plastics industry chain and market supply in Hainan. PBST products have been successfully tested as agricultural mulch films in cotton fields in Xinjiang, providing a feasible solution to the problem of residual plastic film pollution

Succinic Anhydride Production Unit via Maleic Anhydride Hydrogenation Achieved Stable Operation in Qingdao

The technology was developed by SSEC. The project has effectively enhanced the domestic supply capacity of key chemical raw materials. Succinic acid (anhydride) is an important organic chemical raw material and intermediate widely used in biodegradable plastics (such as PBS), pharmaceuticals, food additives, and fine chemicals.

Ten-Tonne-Scale Pilot Unit for Polyetherketoneketone (PEKK) Process Technology Successfully Commissioned

During the Reporting Period, the Group received a total of 37 provincial- and ministerial-level or above science and technology innovation awards, including one National Second Prize for Scientific and Technological Progress. As of the end of the Reporting Period, a cumulative total of 413 innovation achievements have received national- and provincial-/ministerial-level science and technology progress awards.

Case

Two technological innovation achievements led by SNEC — "Green and Low-Carbon Collaborative Manufacturing and Innovative Gasification Platform" and "Development and Industrial Demonstration of Typical Coal Chemical Wastewater Treatment Technology" — were recognised as "Outstanding Petroleum & Petrochemical Technologies" and "China's Outstanding Technologies" for 2025.

Leading the Engineering Construction Industry Toward New Industrialization

The Group systematically promotes innovation in engineering construction models and actively advances the application of advanced technologies and equipment. By continuously improving traditional engineering construction approaches, the Group is transforming from conventional methods to a new model featuring "standardised lean design + factory-based intelligent manufacturing + modularised installation". Through this transformation, the Group is forging a new path of industrialization tailored to the engineering construction industry.

During the Reporting Period, the Group completed a special research project titled the Leading the Engineering Construction Industry Toward New Industrialization and issued the Guidelines for the Comprehensive Promotion of the Company's New Industrialization Framework for the Engineering Construction Industry, actively promoting the practical application of research outcomes in engineering construction projects.

Strengthening Integrated Collaboration Across the Entire Industry Chain

The Group continues to deepen integrated collaborative design, integrated supply chain management, integrated design-for-constructability research, and integrated project interface management. At the same time, the Group strengthens process standardization across the entire business chain, interconnectivity of data chains, and AI applications across tool chains, continuously optimizing the integrated collaboration mechanism for engineering construction to provide customers with enhanced full lifecycle integrated value-added services.

Design

At the design stage, the Group is developing knowledge graphs to enhance efficiency, exploring generative design transformation, and carrying out intelligent research initiatives in 13 key areas, including ethylene units and HAZOP safety analysis. Professional models have been developed for scenarios such as intelligent review, process safety analysis, and structural design, achieving tangible results in plant-wide process optimization and intelligent drawing and 3D model verification.

Management

At the management level, digital technologies are leveraged to empower supply chain collaboration, establishing an intelligent supply chain management system covering the full lifecycle of projects. Integrated platforms for operations management, project management, and construction management have been established to strengthen the "data + platform + application" model and promote the development of standardised smart construction sites.

Application

At the application level, the Group is advancing the development of domestically developed industrial software, including piping systems, physical property databases, and process simulation tools, while deepening the application of 3D design software for civil engineering and equipment engineering.

Case

SPEC developed an integrated computational modelling software for photovoltaic power-based green hydrogen production, which received the Third Prize for Engineering Survey and Design Software at the 2025 National Excellent Engineering Survey and Design Awards.

SNEC's project the Integrated Intelligent Welding Material Warehouse Empowering Digital Welding Management was awarded the Second Prize at the 2025 Construction Project Management Achievement Competition organised by the China Construction Enterprise Management Association.

Sinopec Engineering (Group) Co., Ltd.
2025 Environmental, Social and Governance(ESG) Report

Further Enhancing Digital and Intelligent Empowerment Capabilities

The Group vigorously promotes technological R&D and intelligent assembly, focusing on specialised R&D and application in areas such as modular intelligent manufacturing, factory-based prefabrication production lines, digital simulation of lifting and transportation, and intelligent equipment. By transforming production organization through machine-assisted manufacturing, the Group accelerates the development of intelligent equipment and smart manufacturing workshops while deepening the application of AI in solution optimization and construction scheduling.

During the Reporting Period, the application rate of automatic welding for process pipelines increased to 26%, with 2.93 million inch-diameter process pipeline welds completed. A total of 86 items of high-efficiency construction equipment have been compiled, and the Guidelines for Intelligent Equipment Applications, covering scenarios such as welding, commissioning, inspection, supply chains, and green manufacturing, were officially released.

Modular Intelligent Manufacturing and Factory-Based Construction

The Qingdao intelligent production line of pipe prefabrication of STCC completed assembly and testing.
FCC successfully conducted the precision transportation of 1,194-ton modules for the Huajin Project, with three large modules transported in an average time of only 2.5 hours.
STCC completed the largest depth modular integral lifting of a grid roof structure in the industry, significantly reducing operational safety risks.
A new spherical storage tank construction technology based on all-position automatic welding, independently developed by SNEI, has been applied on a large scale in the Waoming Ethylene Project.
SLT has developed several proprietary technologies for large equipment lifting and transportation, including: 400-ton modular jacking systems, 1,100-ton tailing bracket systems, 5,000-ton hydraulic lifting systems, 2,000-ton multi-water-level mobile heavy-load wharf systems, and the "H-shaped" integrated lifting technology for loop reactors.
SLT pioneered the development of a 14,000-ton rail-mounted crane, which has now entered the implementation stage.

Intelligent Equipment

Technologies such as trackless crawling welding robots and nine-axis pipeline welding robots have been promoted across multiple projects, completing 7,068 inches of pipeline welding and 360 tonnes of pipe support welding, with a first-pass welding qualification rate of 99.8%.
Pilot applications included full-process robotic anti-corrosion operations inside tanks, intelligent inspection robot dogs, and safety monitoring systems. The Group has also promoted new-energy construction machinery, including electric forklifts and aerial work platforms.
The automatic vertical seam welding technology for LNG storage tanks, developed by FCC, has been applied across multiple projects. The first-pass radiographic inspection qualification rate exceeded 99%, earning the Third Prize of the Sinopec Technology Progress Award in 2025.

Advancing Intelligent Production and Operation & Maintenance of Facilities

The Group continues to expand the breadth and depth of digital plant delivery, steadily advancing full-volume, full-factor high-quality digital delivery. A digital twin-based intelligent operation and maintenance platform has been developed as a "system brain", integrating dynamic operational data and mechanism models to enable remote diagnostics, predictive maintenance, and process optimization. The Group is accelerating the development of the Process Remote Technical Support Centre and the Process Remote Intelligent Support Service Platform, forming replicable application models. At the same time, research initiatives related to digital twins and remote intelligent operation and maintenance (O&M) are being carried out to establish an intelligent O&M platform framework, continuously enhancing full-lifecycle intelligent O&M services for facilities and delivering high value-added operational support for customers.

Case

SEI jointly developed a "design-delivery-operation integrated" digital twin intelligent O&M platform, which has been successfully applied to the 3-million-ton-per-year deep catalytic cracking unit at Zhenhai Refining & Chemical, becoming Sinopec's first "three-in-one" digital platform, exploring a new track in intelligent production operation and maintenance services.

GPEC jointly developed the itwins 2.0 delivery platform, enabling digital delivery for:

the 5.6-million-ton-per-year fixed-bed residue hydro-processing unit, the 600,000-ton-per-year propane dehydrogenation unit at the Zhenhai Refining & Chemical high-end new materials project.

The 5.6-million-ton-per-year fixed-bed residue hydro-processing unit

The 600,000-ton-per-year propane dehydrogenation unit

SEI participated in the China International Software Expo, where the SEI Zhiyue Fundamental Physical Property Data Platform and the SEI Zhiyue 3D Plant Design Software received the Silver Award and Outstanding Award respectively among exhibited products.

CLIMATE ACTION

Climate Change Governance

Energy Conservation and Consumption Reduction Management

Clean Technology Opportunities

Supporting the Development of Clean Energy

Supporting UM Sustainable Development Goals

Sinopec Engineering (Group) Co., Ltd.
2025 Environmental, Social and Governance(ESG) Report
37

Climate Change Governance

Governance Structure

The Group has established a three-tier governance structure for climate change management, consisting of the Board of Directors, management, and implementation level, with clearly defined responsibilities at each level. During the Reporting Period, members of the Board participated in one climate risk training session.

Board Level

The Board ESG Committee is responsible for reviewing and determining climate-related matters, reviewing the results of annual climate risk and opportunity assessments, and making recommendations to the Board. It also supervises the implementation of the Group's climate risk and opportunity management and response plans. In coordination with other Board committees, climate-related factors are incorporated into the Board's considerations in strategy, investment, and other major decision-making processes.

Management Level

The Climate Change Response Committee is responsible for addressing major matters related to the Group's climate change response, development planning, relevant regulations and policies, and the completion of annual climate targets. An office is established under the committee to review and formulate climate-related management systems and to carry out work such as climate risk and opportunity identification.

Implementation Level

The QHSE Department is responsible for overall planning, coordination, and supervision. Project departments are responsible for implementing climate risk management and response measures in specific projects and ensuring the implementation of climate risk control requirements.

Climate-related indicators have been incorporated into the Group's 15th Five-Year Plan, as well as the annual performance evaluation of the management team and member enterprises and are linked to annual performance bonuses.

Strategy

The Group attaches great importance to the strategic planning of climate change response as well as energy conservation and emission reduction. It has implemented a "Green & Clean" strategy to promote the innovation and industrialization of clean and decarbonization technologies in the engineering construction and energy and chemical industries. Through technological and engineering innovations, the Group supports the green development of its clients while also building itself into a green enterprise and developing green construction sites. The Group has formulated adaptation plans and mitigation measures in response to climate-related risks and opportunities, and has established a preliminary climate-related transition plan.

Risk/ Opportunity Type	Description of Risk and Opportunity	Impact/ Honestness	Affected Area	Ration/ Affected	Potential Potential Impact	Response Measures
Physical Risks
Acute Risk	Strong Winds: Strong winds may lead to the suspension of high-altitude operations, damage temporary scaffolding and enclosure structures, and affect construction progress.	Short-, medium-, and long-term	Business operations	East Asia
Southeast Asia	Limited cost impact	Wind protection measures are incorporated into construction plans. High-quality operations sensitive to airflow, such as welding and anti-corrosion work, are relocated to wind-protected sheds or enclosed structures.
Special wind protection plans are developed for large equipment lifting and high-altitude operations, with wind speed thresholds calculated.
Temporary buildings and ground facilities are reinforced or dismantled in advance where necessary, including reinforcing prefabricated structures with anchors and removing or securing loose materials at height.
Regular inspections and reinforcement are conducted to ensure the structural stability of tower cranes, scaffolding, and temporary enclosure structures.
	Heavy Rainfall: Short-term heavy rainfall may cause flooding at construction sites, resulting in work interruptions, foundation scouring or environmental pollution incidents.	Short-, medium-, and long-term	Business operations	Southeast Asia	Limited cost impact	Proper on-site drainage systems are planned to ensure smooth drainage channels and underground pipelines.
Water barriers, enclosures and isolation measures are installed to prevent impacts on surrounding ecosystems.
	Typhoons: May result in the suspension of high-altitude lifting operations, damage to temporary scaffolding and enclosure structures, and prevent damage to equipment and machinery at construction sites, thereby impacting construction schedules.	Short-, medium-, and long-term	Business operations	East Asia
Southeast Asia	Limited cost impact	Establish systematic contingency plans, issuing dedicated documents before each typhoon season and implementing a standardised process of "warning - deployment - work suspension - inspection - resumption".
Coordinate with local authorities to develop and implement advance evacuation and resettlement plans for all personnel, including subcontractors.
Reinforce or dismantle temporary facilities in advance, suspend all operations and evacuate personnel when necessary.
Acute/ Chronic Risks	Extreme Heat/Rising Temperature: Rising temperatures may reduce equipment cooling efficiency, increase failure rates, and elevate health risks for workers, thereby affecting construction efficiency and progress.	Short-, medium-, and long-term	Business operations	Southwest Asia
Southeast Asia
East Asia
South Asia
South America
Europe	Limited cost impact	Establish a tiered response mechanism triggered by temperature thresholds, and incorporate it into subcontractor management.
Adopt staggered work schedules in tropical and desert regions, including night operations, to avoid peak high-temperature periods.
Provide cooling facilities and supplies for personnel at project sites.
	Extreme Cold: Low temperatures may increase equipment preheating energy consumption and reduce efficiency, while frozen soil conditions may affect earthwork construction.	Short-, medium-, and long-term	Business operations	North Asia	Limited cost impact	Install electric heat tracing systems for key pipelines and equipment and use insulation materials. Enclosures or air-supported membrane structures are set up at work areas to provide thermal insulation.
Provide cold-weather protective equipment for workers and establish heated rest areas.

Sinopec Engineering (Group) Co., Ltd.
2025 Environmental, Social and Governance(ESG) Report

Risk/opportunity Type	Description of Risk and Opportunity	Impact Horizon^{Note 1}	Affected Area	Regions Affected^{Note 2}	Potential Financial Impact	Response Measures
Physical Risks
Policy and Regulatory Risks	China plans to implement carbon emission quotas. If the Group is included in the national carbon emissions trading market as a key emitting entity, compliance costs may increase.	medium-, and long-term	Business operations	/	Increase in compliance costs	• Conduct research on carbon emission-related policies and regulatory requirements, and improve internal carbon management mechanisms.
• Explore industry-specific carbon emission factor accounting methodologies to enhance the transparency and credibility of carbon emissions data disclosure.
Reputation Risk	Stakeholders are paying increasing attention to corporate climate action and environmental management. Failure to effectively respond to climate change may negatively impact the Group's reputation.	medium-, and long-term	Business operations	/	Decrease in revenue	• Monitor negative environmental incidents disclosed on regulatory websites. In the event of such incidents involving the Group, the Investor Relations Department and the Publicity Department will provide timely explanations to investors and external stakeholders to mitigate potential reputational impact.
Market Opportunities	Under international agreements such as the "Paris Agreement" and the 2030 Agenda for Sustainable Development, as well as government policies including the Opinions on Fully, Accurately and Comprehensively implementing the "New Development Philosophy to Achieve Carbon Peaking and Carbon Neutrality Goals", the global energy consumption structure is transitioning toward low-carbon and clean energy, creating more market opportunities for the Group.	medium-, and long-term	Business operations
Value chain	/	Increase in revenue	• Assess the impact of relevant policies, actively expand new energy businesses, strengthen analysis of emerging markets and the reserve of new technologies, and promote the integration of traditional refining technologies with new energy.
• Enhance communication with stakeholders to strengthen market confidence.
Technology Opportunities	"Energy conservation, carbon reduction, pollution reduction, ecological expansion and green growth" have become common goals across the energy industry, requiring engineering enterprises to continuously enhance the development, application and engineering deployment of green and low-carbon technologies, thereby creating more technological opportunities for the Group.	medium-, and long-term	Business operations
Value chain	/	Increase in revenue	• Actively develop and promote low-carbon technologies, enhance their maturity and reliability, and improve energy efficiency through technological innovation to foster advanced green productivity.
• Strengthen industry-university-research collaboration with universities and research institutions to share resources and technological achievements, accelerate the advancement of low-carbon technologies, and promote their development and application.

Note 1: Time Horizons: Short-term: 1 year; Medium-term: 3 years; Long-term: 5 years and above.
Note 2: Geographic Scope: The Company's primary business operations are concentrated in East Asia, North Asia, South Asia, Southeast Asia, Southwest Asia, South America, and Europe. Business activities in other regions are minimal and are therefore excluded from this assessment.

Financials, the Group provides engineering construction insurance during the early preparation stages of projects. Claims can be filed for project schedule delays and asset losses caused by acute climate events such as strong winds, heavy rainfall, and typhoons to cover financial losses. During the Reporting Period, the Group did not experience any material financial impact caused by climate-related risks.

Risk Management

The Group integrates climate-related risks and opportunities into its enterprise-wide risk management system and daily operational practices. The Corporate Reform and Legal Department oversee the Group's comprehensive risk management efforts. During the risk assessment process, member enterprises and project teams incorporate climate adaptation considerations related to project design and construction, with the aim of enhancing climate resilience across projects. QHSE Department regularly compiles a list of projects affected by climate risks, identifies the associated impact factors, and documents corresponding response measures. This forms a comprehensive mechanism for climate risk management.

In addition, the Group engages third-party institutions to conduct ongoing assessments, modelling and updates of future climate risks based on IPCC^{Note 1} (Intergovernmental Panel on Climate Change) and IEX^{Note 2} (International Energy Agency) climate scenarios. This ensures the timeliness and forward-looking nature of climate risk identification and assessment. The results are submitted to the Board of Directors and senior management to support informed decision-making and ensure effective transmission of climate-related responsibilities at the governance level.

The Group continuously monitors climate-related risks by establishing a risk ranking and dynamic tracking mechanism. By systematically evaluating both the potential impacts and likelihood of risks, the Group is able to address high-priority risks in a timely manner, disclose progress on climate-risk responses, and continuously enhance action plans. These efforts ensure that climate risks remain within a manageable range and support the Group's low-carbon transition and sustainable development.

With reference to the "International Financial Reporting Standard S2: Climate-related Disclosures (IFRS S2)", the Group identifies, reports, and formulates action plans for key climate-related risks under climate change scenarios.

Note 1: Intergovernmental Panel on Climate Change
Note 2: International Energy Agency

Metrics and Targets

The Group has established greenhouse gas (GHG) emissions reduction targets. During the "14th Five-Year Plan" period, the Group aims to reduce its GHG emissions intensity by 5.7%, covering Scope 1 and Scope 2 emissions. The baseline year for this performance indicator is 2021, during which the Group's total GHG emissions amounted to 111,873.76 tonnes of CO₂ equivalent^{Note 2}, with an emissions intensity of 193.69 tonnes of CO₂ equivalent per RMB 100 million of revenue. During the Reporting Period, the Group formulated its "15th Five-Year Plan" GHG emissions intensity target. By 2030, the Group aims to reduce its GHG emissions intensity to 195 tonnes of CO₂ equivalent per RMB 100 million of revenue.

"15th Five-Year Plan" Greenhouse Gas Emissions Intensity Targets

During the Reporting Period, the Group continued to improve its greenhouse gas (GHG) emissions inventory management and conducted a Scope 3 GHG emissions inventory for the first time, with the accounting boundary including business travel. During the Reporting Period, the Group's total GHG emissions amounted to 139,079.67 tonnes of CO₂ equivalent, with an emissions intensity of 198.48 tonnes of CO₂ equivalent per RMB 100 million of operating revenue.

Among them: Scope 1 GHG emissions: 63,796.23 tonnes of CO₂ equivalent, Scope 2 GHG emissions: 75,283.44 tonnes of CO₂ equivalent and Scope 3 GHG emissions: 34,732.95 tonnes of CO₂ equivalent.

During the Reporting Period, the Group launched an Environmental Performance Management System based on its digital business management platform. The system includes greenhouse gas (GHG) emissions data collection and statistics, ensuring the accuracy of carbon data at the project level.

Note3: Greenhouse gas emission targets cover Scope 1 and Scope 2 greenhouse gas emissions.

Sinopec Engineering (Group) Co., Ltd.
2025 Environmental, Social and Governance(ESG) Report

Energy Conservation and Consumption Reduction Management

The Group strictly complies with relevant laws and regulations, including the "Energy Conservation Law of the People's Republic of China", and has formulated internal management policies such as the Environmental Protection Management Regulations of Sinopec Engineering Group and the Environmental Information and Environmental Protection Statistics Management Regulations of Sinopec Engineering Group, to strengthen internal energy consumption management.

In response to policies promoting the phase-out and upgrading of high-energy-consuming equipment, the Group focuses on reducing energy consumption in the energy and chemical industries at the source. It also actively promotes the electrification of key equipment to better align with carbon reduction requirements.

During project construction, the Group vigorously promotes the use of new energy vehicles and equipment, including electric aerial work platforms and walking-type electric hydraulic hammer piling machines. Solar-powered equipment is also introduced for night operations to reduce carbon emissions during construction activities. In office facilities, the Group has introduced rooftop photovoltaic systems to reduce greenhouse gas emissions from office operations.

Rooftop photovoltaic system at the FCC Craftsman Academy

During the Reporting Period, the Group's total operational energy consumption amounted to 52,765.68 tonnes of standard coal equivalent (tce). The comprehensive energy intensity per unit of revenue was 73.30 tonnes of standard coal equivalent per RMB 100 million of revenue. Detailed data on energy consumption by type can be found in Performance Report A2.1.

Clean Technology Opportunities

The Group believes that clean technologies represent a fundamental solution for addressing climate risks and capturing transition opportunities. The Group fully implements its "Green & Clean" development strategy, systematically advancing standards research and technology development to drive the advancement of clean technologies and the energy transition.

SEI participated in the development of industry standards including the Technical Specifications for Carbon Dioxide Capture in the Petrochemical Industry and the Technical Specifications for Carbon Dioxide Capture in the Petrochemical Industry - Solvent and Process Categories. It also contributed to professional series publications such as the Hydrogen Energy Industry Series and Green and Low-Carbon Transformation of Refining Structures, providing scientific and systematic guidance for emission reduction across the industry.

SEM led the drafting of the national standard the Quantification Methods and Requirements for Product Carbon Footprint of Greenhouse Gases - Vinyl Acetate, further advancing standardization in the industry.

Eight technologies developed by the SEI, GPEC, and SEGR, including flue gas turbine energy-saving technology, LQSR energy-efficient sulphur recovery tail gas treatment technology, and the low-nitrogen intensified combustion technology, were selected for inclusion in the Compilation of Advanced Energy Conservation and Carbon Reduction Technologies in the Refining Industry.

The Group actively promotes the development of various clean technologies. During the Reporting Period, the Group's total investment and expenditure in clean technologies amounted to RMB 1.659 billion. The Group has set the following target for clean technology investment: By 2026, expenditure on clean technology-related research and development will account for no less than 30% of the Group's total R&D expenditure for the year.

Renewable Energy

SEI has carried out research on hydrogen production through electrolysis of biomass and organic waste liquids, enabling the effective utilization of biomass resources such as agricultural and forestry waste and pharmaceutical residues, as well as organic waste liquids. This approach helps address environmental pollution caused by the accumulation or discharge of such wastes. By integrating renewable resources with green electricity-based hydrogen production, the Group aims to reduce carbon emissions from traditional hydrogen production and explore pathways toward negative-carbon hydrogen production.
GPEC has developed China's first high-power tubular electric heating furnace, which replaces traditional fossil fuel-based heating processes with electric heating of process media. The technology has successfully passed on-site hot-state testing.
SEI has also developed electrification substitution solutions for ethylene units, helping to reduce carbon dioxide emissions.
For further information on renewable energy initiatives, please refer to Section 3.4 "Supporting the Development of Clean Energy" of this report.

Sinopec Engineering (Group) Co.,Ltd.
2025 Environmental, Social and Governance(ESG) Report

Resource Recycling and Pollution Prevention

SSEC, in collaboration with Fudan University, has developed a waste nylon degradation and recycling technology that significantly reduces pollution caused by landfill and incineration, lowers greenhouse gas emissions, and alleviates pressure on land resources.
GPEC is actively advancing technology development and industrial application in the CCUS (Carbon Capture, Utilization and Storage) field. In the Lianhong project, the Company successfully produced food-grade liquid carbon dioxide using tal gas from chemical units as feedstock. In the Jingbo Petrochemical project, an innovative flue-gas circulation process was adopted to directly produce high-purity carbon dioxide gas, improving carbon capture efficiency and utilization value.

Energy Efficiency

The cold and heat energy coupling utilization technology for ethylene plants and LNG receiving terminals developed by the SEI has been applied industrially in Nangang, Tianjin. By utilizing LNG cold energy, the technology reduces the power consumption of refrigeration units by 15,000 kW, lowers the comprehensive energy consumption of the ethylene unit by 30 kg of standard oil equivalent per tonne of ethylene, and reduces carbon dioxide emissions by more than 130,000 tonnes per year. The receiving terminal is able to save 13 million cubic meters of natural gas and 3 million kWh of electricity annually.
GPEC jointly developed China's first thousand-tonne-scale industrial side-stream unit of the dilute-ethylene liquid-phase ethylbenzene production technology, which has been successfully put into operation. Compared with the traditional gas-phase process, which operates at lower reaction temperatures and allows better control of temperature rise during the process. As a result, overall energy consumption is reduced by approximately 50%, significantly decreasing steam and fuel consumption while lowering greenhouse gas emissions and improving the purity of ethylbenzene products.
GPEC has also completed process upgrades through the development of integrated technologies for the scale-up and energy optimization of hydrocracking units. The optimised hydrocracking process reduces pollutant emissions and directly lowers the carbon footprint of the unit, providing a key technological pathway for refinery carbon reduction.
Relying on the integrated application of multiple energy-saving technologies, SNEC has provided systematic energy-saving support to more than 30 petrochemical cogeneration plants, achieving annual savings of 250,000 tonnes of standard coal equivalent and reducing carbon dioxide emissions by 675,000 tonnes per year.
SEM has implemented 34 Energy Performance Contracting (EPC) projects covering circulating water system upgrades, low-temperature waste heat recovery, and compressor retrofitting. These projects help customers save a cumulative 300,000 tonnes of standard coal equivalent per year and reduce carbon dioxide emissions by 680,000 tonnes annually.

Sustainable Water Resources

SEI implemented advanced classified wastewater treatment at the Maoming Ethylene Project, achieving deep wastewater treatment. The chemical oxygen demand (COD) of discharged wastewater is maintained at < 30 mg/L, while the overall wastewater reuse rate reaches ≥ 70%.
GPEC has also developed an intelligent treatment process and equipment for petrochemical wastewater based on aerobic granular sludge technology, which reduces plant footprint by over 60%, lowers energy consumption by over 35%, and decreases sludge production by over 60%.

STCC built the largest water treatment system for a chemical enterprise in China for Wanhua Chemical.

Industrial application of the olefin spent caustic freezing-crystallization unit developed by SEI, significantly reducing the discharge of high salinity wastewater.

GPEC has developed wastewater treatment technologies for chemical units containing phenols, hydrogen sulphide, and ammonia, enabling the recovery of phenolic substances from wastewater while producing acidic gas and liquid ammonia as by-products, achieving dual benefits of pollution control and resource recovery.

New Materials and Green Buildings

SEGR has improved cost efficiency and performance throughout the full lifecycle of corrosion protection and thermal insulation engineering. Through its application in insulation projects at more than 30 refineries, the rate of excessive heat dissipation in insulation systems has decreased from 11.8% to 7.6%. This improvement reduces annual heat loss by approximately 4.3 × 10⁵ GJ, resulting in a reduction of about 3.1 tonnes of carbon dioxide emissions per year.
SEGR has collaborated with Guangdong University of Technology to develop biomass aerogel technology for thermal insulation. Using cellulose as the primary raw material, this technology has a lower lifecycle carbon footprint compared with conventional insulation materials.

The rate of excessive heat dissipation 11.8%

decreased to

7.6%

Sinopec Engineering (Group) Co., Ltd.
2025 Environmental, Social and Governance(ESG) Report

Supporting the Development of Clean Energy

The Group fully supports the development of clean energy and promotes technological innovation and industrial advancement in fields such as sustainable aviation fuel (SAF), natural gas and LNG, hydrogen energy, green ammonia, green methanol, and biomass.

Sustainable Aviation Fuel (SAF)

The Group continues to advance the research, development, and application of sustainable aviation fuel (SAF). It actively promotes key technological breakthroughs in areas including biomass conversion, waste resource utilization, and low-carbon synthetic fuels, supporting the aviation industry's efforts toward carbon reduction, decarbonization, and green transition.

Case

SNEC EPC and Design for an Integrated Biomass-to-Green Methanol and Green Aviation Fuel Project

It establishes a new SAF production system based on renewable hydrogen production, biomass gasification, and syngas-directed conversion, with a planned production capacity of 100,000 tonnes of sustainable aviation fuel (SAF) per year.

GPEC is undertaking the technology development and engineering design for China's largest project producing sustainable aviation fuel from waste oils and fats, with a planned production capacity of 1 million tonnes per year.

Natural Gas and LNG

The Group continues to advance the development of technologies related to LNG storage and transportation, natural gas purification, and natural gas utilization, contributing to energy supply security and the energy transition. During China's 14th Five-Year Plan period, the Group has undertaken the construction of nine LNG storage tank and receiving terminal projects within China, significantly enhancing LNG receiving, storage, transportation, and emergency peak-shaving capacity. These projects help optimise the energy consumption structure and provide strong support for regional energy security and green development.

LNG storage tank project in Algeria EPC-contracted by GPEC, where the air pressure dome lifting operation was successfully completed.

Green Hydrogen-based Energy

The Group continues to promote innovation across key segments of the hydrogen energy value chain, including low-cost hydrogen production from renewable energy, hydrogen storage and transportation, and integrated utilization, accelerating the development of a clean, low-carbon, safe, and efficient hydrogen energy system.

Case

SEI Undertakes EPC Contract for Ningxia's First 10,000-tonne Wind-Solar Green Hydrogen Integrated Demonstration Project.

SNEC has participated in the development of a 100,000-tonne-per-year CO₂ hydrogenation-to-green methanol integrated process package. The technology can be widely applied in scenarios such as industrial tail gas treatment, carbon capture from biomass boilers and utilization of carbon-rich syngas from biomass gasification. By coupling with green hydrogen, the technology enables the large-scale production of green methanol.

SNEC has developed SEBG entrained-flow bed and SFBG circulating fluidised bed biomass gasification technologies, which can efficiently process feedstocks such as agricultural and forestry residues, municipal solid waste, and waste plastics. During the Reporting Period, the technology was successfully applied at Hunan Petrochemical and is expected to reduce carbon dioxide emissions by approximately 140,000 tonnes per year.

Sustainable Aviation Fuel (SAF)

The Group continues to promote the research, development, and application of biomass-related technologies, contributing to the establishment of a clean and low-carbon energy system through technological innovation and industrial practice.

Case

SSEC designed and constructed a pilot plant for a non-food bio-based sugar platform, which has successfully been commissioned. The project achieves a technological breakthrough in low-cost production of fermentable sugars from straw, effectively alleviating the "food-versus-industry" competition for grain resources in industrial fermentation while contributing to carbon dioxide emission reduction.

Photovoltaic Power Generation

The Group actively participates in photovoltaic engineering projects, supporting energy structure transformation and sustainable development.

Case

The First Floating Photovoltaic Project in China Constructed by SFCC

The project has been successfully submitted to the grid for new energy-eating photovoltaic project consisting in a far, seawater environment and area. It is expected to promote the energy-eating photovoltaic project annually and reduce carbon dioxide emissions by approximately 9,200 tonnes per year.

ENVIRONMENTAL PROTECTION

Environmental Management

Industrial Contact

Special Duty Consultation

14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42

Sinopec Engineering (Group) Co., Ltd.
2025 Environmental, Social and Governance(ESG) Report
48 | Sinopec Engineering (Group) Co., Ltd.

Environmental Management

Environmental Management Framework

Board Level

The Group has established an ESG Committee to oversee major environmental management issues. In coordination with other Board committees, it integrates environmental considerations into Board-level decision-making and ensures top-level environmental oversight.

Management Level

The Company has established an HSE Management Committee, chaired by the Chairman of the Board, with the heads of member enterprises serving as committee members. The HSE Management Committee is responsible for handling major HSE matters, formulating development plans and relevant rules and regulations, supervising the fulfilment of HSE responsibilities, and coordinating the resolution of environmental protection issues.

Implementation Level

The Quality, Safety and Environmental Protection Department is responsible for overall planning, coordination and supervision, while project departments are responsible for the implementation of environmental protection work for each project.

The Group has formulated a series of management policies and procedural documents aligned with the principles of green and low-carbon development, including the SEG Environmental Protection Management Regulations and the SEG Environmental Information and Environmental Protection Statistics Management Regulations. During the Reporting Period, the Group issued the revised Guidelines for Green Design of Petrochemical Projects (Trial) and the Standardised Construction Guide for Temporary Hazardous Waste Storage Rooms at Engineering Project Sites.

During the Reporting Period, the Company and all 11 subsidiaries completed the renewal audits for ISO 14001 Environmental Management System certification, with certified entities accounting for 100% of the Group's revenue.

During the Reporting Period, Sinopec Environmental Technology Co., Ltd. was established as a dedicated platform for environmental management business for the Group.

Enhancing Environmental Awareness

Environmental Awareness

The Group promotes green corporate culture, public welfare activities, tree-planting activities, etc.

Training and Education

The Group organises briefings to interpret environmental protection policies.
Site induction training and targeted training programmes are conducted to enhance employees' awareness of environmental protection-related laws, regulations and management requirements.

Outreach and Engagement

The Group showcases its industry-leading green initiatives and achievements through multiple channels, including culture walls, WeChat updates, news releases, environmental columns, posters, themed videos and promotional materials.
Environmental awareness at construction sites is further enhanced through banners, display boards, educational materials and handbooks, while ensuring proper environmental management at project sites.

Green Operations

Green Design

The Group promotes green design principles to optimise resource and energy efficiency at the source.
During the project design phase, the Group adheres to the principle of "Overall Energy Optimisation", adopting innovative processes, technologies and equipment to reduce resource and energy consumption.
Waste reduction systems and wastewater and emission treatment facilities are incorporated into project designs to reduce emissions, wastewater discharge and solid waste generation at the source.

Green Construction

Regulate the use and transportation of materials, ensuring proper classification, storage and disposal of waste to promote recycling and reuse and reduce waste discharge.
Energy-efficient and environmentally friendly construction equipment and tools are prioritised, while outdated equipment is gradually phased out and replaced in accordance with relevant plans.
Subcontractors are encouraged to participate in resource conservation initiatives.

Green Office

The Group promotes water and energy conservation through efficient fixtures and equipment.
Paperless operations and digital workflows are implemented to improve operational efficiency.
Measures are taken to reduce resource waste and minimise the procurement and consumption of single-use items.

Green Living

The Group advocates green transportation.
"Clean Plate" initiatives are promoted to reduce food waste.
Green awareness among employees is strengthened through training and publicity activities.

Green Enterprise Campaign

The Group actively promotes the Green Enterprise Campaign, steadily advancing various initiatives focusing on carbon reduction, pollution control, efficiency improvement and environmental enhancement. As of the end of the Reporting Period, the Group has achieved the following results: two subsidiaries were recognised as Sinopec Green Enterprises, 104 construction sites were recognised as Sinopec Green Construction Sites, and nine construction sites were designated as Green Construction Site Benchmarks.

The Group's environmental management system requires construction sites to comply with the "six 100% requirements": 100% enclosure of site perimeters, 100% coverage of exposed soil and materials, 100% vehicle washing at entry and exit points, 100% paving of site roads, 100% wet operation for earthwork excavation, and 100% sealed transportation of construction waste. Compliant disposal rate of general solid waste and hazardous waste reaches 100%.

The compliant disposal rate of both general solid waste and hazardous waste reaches 100%.

All industrial wastewater and domestic sewage are properly treated in accordance with relevant standards.

The Group also promotes the development of green and digital factories to achieve leading environmental protection standards in the domestic petrochemical engineering industry, striving to become an environmental benchmark enterprise within Sinopec.

Sinopec Engineering (Group) Co., Ltd.
2025 Environmental, Social and Governance(ESG) Report

Pollution Control

The Group strictly complies with the "Environmental Protection Law of the People's Republic of China" and other relevant laws and regulations. It has formulated a series of policies and management systems, including the SEG Environmental Protection Management Regulations, the SEG Solid Waste Environmental Protection Management Guidelines for Engineering Projects, and the Standardised Construction Guide for Temporary Hazardous Waste Storage Rooms at Engineering Project Sites. These policies and systems regulate the management of various emissions and discharges, including air pollutants, waste materials, wastewater and greenhouse gases, with the aim of minimising operational emissions and effectively managing the Group's environmental footprint.

Environmental Management Targets for the 15th Five-Year Plan Period

Energy	Reduce comprehensive energy consumption intensity to 80 tonnes of standard coal per RMB 100 million of revenue by 2030.
Water	Reduce water consumption intensity to 5,000 tonnes per RMB 100 million of revenue by 2030.
Emissions	Reduce NOx and SOx emission intensity to 18 tonnes per RMB 1 million of revenue and reduce VOC emission intensity to 450 tonnes per RMB 1 million of revenue by 2030.
Waste	Reduce non-hazardous waste intensity to 230 tonnes per RMB 100 million of revenue and reduce hazardous waste outsourced disposal intensity to 0.8 tonnes per RMB 100 million of revenue by 2030.

Atmospheric Pollutants

The Group's engineering construction activities primarily generate atmospheric pollutants including dust, nitrogen oxides (NOx), sulphur oxides (SOx), and volatile organic compounds (VOCs). Dust mainly originates from shot blasting, sandblasting, rust removal, welding fumes, grinding and cutting operations. Nitrogen oxides and sulphur oxides are mainly produced from the consumption of diesel and gasoline by construction equipment and company vehicles. VOCs are primarily generated from anti-corrosion painting operations.

To effectively control dust pollution, the Group adopts a source control approach. Enclosed workshops are set up in prefabrication yards for sandblasting and shot blasting operations, and these activities are strictly prohibited in open-air environments. Dust control facilities are installed to ensure effective dust management throughout the operational process. In addition, construction sites implement measures such as enclosure, covering and vehicle washing to manage dust-prone areas and equipment, thereby further reducing dust emissions.

For VOCs management, anti-corrosion operations such as paint preparation, spraying and drying are conducted in enclosed environments whenever feasible. Facilities are equipped with VOCs capture and treatment systems to collect VOCs emissions generated during operations. Thermal oxidation or other treatment technologies are used to ensure compliance with emission standards. At project sites, centralised prefabrication methods are adopted to effectively control dust and VOCs emissions, ensuring that atmospheric pollutants are properly treated before discharge and thereby minimising environmental impact. The Group also reduces VOCs emissions by prioritising the use of low-VOCs coatings for outdoor painting operations. During the Reporting Period, the Group's project implementation generated a total of 3,168.64 tonnes of VOCs emissions.

To reduce emissions of nitrogen oxides and sulphur oxides, the Group is gradually transitioning from conventional fuel vehicles and construction equipment to electric vehicles and new energy machinery, thereby reducing NOx and SOx emissions from fossil fuel consumption. During the Reporting Period, the Group's project implementation generated a total of 5.18 tonnes of SOx and 106.39 tonnes of NOx.

Case

GPEC further upgraded the LQSR energy-saving sulphur recovery tail-gas treatment technology, reducing pollutant emissions by lowering sulphur dioxide concentration to below $10\mathrm{mg / m}^3$ and particulate matter concentration to below $7\mathrm{mg / m}^3$.

The North Huajin Project successfully completed the integrated lifting of a 1,200-ton large pipe-rack module. Dust emissions were reduced through "Soil-free Construction" and the hardening of main access roads, promoting source reduction of pollution through green construction methods.

GPEC and FCC implemented factory prefabrication and modular construction, significantly reducing cutting and welding operations and lowering smoke, dust and carbon emissions. Supporting measures such as flue gas recovery devices and zoned operations were adopted to enable refined pollution control.

Construction project using modular steel structures

Waste

Waste generated during the Group's operations mainly includes general solid waste, domestic waste and hazardous waste. General solid waste primarily consists of waste materials generated by construction units and contractors during the construction, expansion and demolition of buildings, structures and pipeline networks, as well as waste generated from daily office operations. Domestic waste mainly arises from employees' daily activities, while hazardous waste is primarily generated from construction activities and daily office operations.

For general solid waste, the Group implements a classification-based management and disposal approach. Waste wood products, wastepaper, scrap steel and waste non-ferrous metals are recycled and reused internally where feasible. Waste machinery and transportation equipment are recycled or disposed of appropriately. Waste plastics, composite packaging materials, waste batteries, waste electrical and electronic products, construction waste and other materials are transferred to qualified third-party organisations for proper disposal. Domestic waste is handled by municipal sanitation authorities. All hazardous waste is transferred to qualified third-party organisations for compliant disposal in accordance with relevant national laws and regulations.

Waste management is included in the Group's routine environmental supervision priorities. The Group strictly reviews and rectifies issues such as improper storage of hazardous waste, mixing of hazardous and non-hazardous waste, improper storage of construction waste, incomplete or non-standardised record-keeping and inadequate waste classification signage. In addition, the Group actively explores green engineering technologies to promote waste reduction at source and recycling, supporting the development of a circular economy within the industry.

During the Reporting Period, the Group's operations generated 574.46 tonnes of hazardous waste, all of which was handled by qualified third-party organisations, and 135,038.08 tonnes of non-hazardous waste.

Case

SEI developed and designed an industrial pilot unit for oil-containing sludge featuring "pyrolysis + oil and gas recovery + compliant waste treatment and discharge", achieving efficient recovery and utilisation of oil and gas resources and reducing the petroleum hydrocarbon content in the solid phase to $6.0\%$.

SNEC uses steel formwork to replace traditional wooden formwork in frame structure construction, preventing the generation of large amounts of wood waste at the source. Steel formwork can be reused multiple times after professional refurbishment.

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2025 Environmental, Social and Governance(ESG) Report
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Wastewater

The wastewater generated during the Group's engineering construction activities mainly includes operational wastewater and domestic sewage from construction projects. Operational wastewater mainly arises from site cleaning activities, including the washing of construction areas, vehicles and machinery. Construction project sewage is mainly generated in the living quarters of construction workers. All operational wastewater is collected, recycled and treated in compliance with relevant regulations, while construction project sewage is discharged strictly in accordance with the requirements of client to designated locations and using designated treatment methods. The Group continues to strengthen wastewater recycling efforts and consistently enhances water resource efficiency.

The Group actively explores new approaches for the recycling and reuse of water resources, continually developing efficient water utilisation solutions and technologies for the industry. For details, please refer to the "Addressing Climate Change – Clean Technology Opportunities" section of this Report.

Noise

To prevent and minimise noise pollution, the Group carefully arranges construction site layouts and work schedules to reduce noise generation. Physical noise barriers are installed at site boundaries to contain sound effectively. We have also invested in low-noise construction equipment and implement effective measures to reduce noise during construction while conducting regular monitoring to ensure compliance with regulatory standards. The Group also actively promotes the use of new energy construction machinery, such as articulated or scissor-type elevating work platforms, to achieve "zero-emissions and low-noise" operating conditions.

Case

Traditional noise pollution prevention mostly relies on end-of-pipe measures, which are often faced with challenges such as high costs and limited effectiveness. In the Huizhou Ethylene project, SEI established a full-process, closed-loop noise control system featuring "simulation warning - design optimisation - dynamic verification", enabling systematic noise control at the source, significantly reducing environmental risks and subsequent remediation costs.

Biodiversity Conservation

The Group operates in strict compliance with the "Environmental Protection Law of the People's Republic of China" and the "Administrative Measures for Ecological and Environmental Penalties", as well as relevant laws and regulations in all our operational locations. The Group has formulated comprehensive management systems, such as the SEG Environmental Protection Management Regulations and SEG Environmental Management Guidelines for Project Prefabrication Sites (Trial). In addition, the Group also rigorously adheres to the environmental policies of Sinopec, such as the Sinopec Greening Management Regulations, Sinopec Ecological and Environmental Incident Management Measures, and Sinopec Accountability Measures for Ecological and Environmental Incidents. Through these structured approaches, we proactively advance standardised ecological protection practices across our operations.

Full Life Cycle Biodiversity Conservation Measures

Pre-Project Phase

Conduct Environmental Factor Identification and Impact Assessments

Maintain strict compliance with China's ecological red line policy, land-use efficiency protocols, and marine functional zoning requirements.
Conduct environmental factor identification and impact assessments across all operational areas, including construction zones and administrative facilities, ensuring robust and defensible environmental impact conclusions.

Prevent Environmental Impacts from Construction Activities

Carefully relocate and cultivate vegetation in surrounding areas that are susceptible to impact before construction to minimise ecological impacts. Pay attention to farmland reclamation during pipeline construction, adopt a combination of ecological belts and masonry in hydraulic protection, and carry out topsoil stripping for later reuse in land reclamation after project completion. These measures help reduce revegetation difficulties and improve revegetation efficiency, effectively facilitating land restoration and revegetation.

Training Project Implementation

Minimise Environmental Impacts During Construction

Prevent light spill and leakage of fuel, drilling mud and other materials during construction. Mitigate ecological risks from potential leaks and strengthen environmental protection and ecological restoration during pipeline construction.
For construction sites near the sea, assign dedicated personnel to monitor surrounding water quality and conduct real-time monitoring to ensure compliant marine discharge. Regarding oil contamination risks, install protective facilities such as drip trays beneath key equipment to effectively prevent leakage and spread, and carry out regular inspections by designated personnel. All wastewater is entrusted to qualified third-party organisations for disposal to avoid pollution.

Wildlife Protection

Strictly prohibit workers from destroying animal habitats, hunting, feeding or deliberately harassing wildlife during construction. Avoid disrupting ecologically sensitive periods for wildlife.
Promptly rescue trapped wildlife in a timely manner.

Sinopec Engineering (Group) Co., Ltd.
2025 Environmental, Social and Governance(ESG) Report

Post-Project Completion

Ecosystem Restoration

For environmental damage caused by construction, conduct ecological integrity restoration after the completion of construction, including vegetation restoration and soil and water conservation.
Develop vegetation restoration plans for areas where construction activities have damaged ground vegetation. For temporarily occupied farmland, grassland, forestland and other areas, strip and store topsoil for use in restoring vegetation in temporarily occupied areas, restore these areas to their pre-construction conditions after completion

The Group actively promotes the development and deployment of soil and groundwater remediation technologies, and has established a comprehensive site remediation technology system, including bioremediation and phytoremediation. The Group also actively advocates Nature-based Solutions (NBS) to support the protection of clean water, blue skies and healthy soils.

FCC adopts biodegradable eco-bag protection technology in long-distance pipeline projects to prevent and control soil erosion.

Case

SEI undertook the environmental impact assessment (EIA) for the Saudi NHF Island Project. Through scientific scoping and systematic identification of ecologically sensitive elements, the EIA Scoping Report was approved in a single review with no comments. The high-standard EIA process enabled proactive environmental risk prevention at the source and supported ecological protection.

The project "Key Technologies and Applications for Risk Prevention and Green Remediation of Petrochemical Contaminated Sites" undertaken by Sinopec Fifth Construction Company won the Second Prize of the Science and Technology Progress Award from the China Petroleum and Chemical Industry Federation.

GPEC strips and stores topsoil separately and restores exposed soil through re-cultivation and revegetation.

OCCUPATIONAL HEALTH AND SAFETY MANAGEMENT

National Health and Safety Management (NHS) and
Occupational Health and Safety Management of Subcontractors

Security
Supporting UN Sustainable Development (SSED)

Sinopec Engineering (Group) Co., Ltd.
2025 Environmental, Social and Governance(ESG) Report
58 | Sinopec Engineering