Sinopec Shanghai Petrochemical : 2018 Corporate Social Responsibility Report

2018

CORPORATE

SOCIAL

RESPONSIBILITY

REPORT

(A joint stock limited company incorporated in the People's Republic of China)

Stock code: 00338 Hong Kong 600688 Shanghai

Original Aspiration and Mission

Love My Country, Revitalize Petrochemical Industry and

Provide Energy for Better Living

Strategic Positioning

To Build a Domestically Leading and Globally First-class Energy and Chemical as well as New Material Company

Corporate Value

People, Responsibility, Integrity, Precision, Innovation, Shared Values

Corporate Style

Strictness, Precision, Pragmatism

Table of Contents

Address by Chairman of the Board 01

SPC Responsibility Performance Sheet 03

Company Profile 05

Corporate Culture 06

Development Strategy 06

Corporate Governance 07

Communication about topics of social 08 responsibility

Matrix for assessment of the importance 08 of social responsibility topics

Responsibility Management 09

2018 Honors of Responsibility 11

Outlook of 2019 46

12 18 22 26

38 42

Written Comments on Assessment of Corporate 47

Social Responsibility Report

Index 51

Briefing of this report 53

Address by Chairman of the Board

2018 is the 40th anniversary of economic reform and opening-up in China and also the critical year for Sinopec Shanghai Petrochemical Company Limited (hereinafter referred to as "SPC")'s deepening of reform and innovations. Faced with such complicated situations as swinging international oil prices, visible slowdown of energy demand growth and increasingly stringent environmental requirements, SPC remained mobilized for brand new endeavors from senior management to grassroots, focusing on three main campaigns of "environmental governance, overcoming difficulties of development, reserve of talents", making great efforts to implement such activities as stable operation of the units, optimization of production operations and cost reduction. As a result, the production operation is generally stable, safety and environmental protection are at a good tendency and the economic benefit presents favorable trends. In 2018, SPC achieved total industrial output value of 81.736 billion RMB and operation revenue of 107.765 billion RMB and totally paid tax revenue of 14.097 billion RMB, ranked 19th among the top 100 Shanghai-based enterprises in 2018.

01 2018 SPC Report on Corporate Social Responsibility

SPC vigorously built "beautiful petrochemical industry" and accelerated the establishment of green enterprises. The company greatly promoted advanced, highly efficient, low-carbon, energy saving and water conservation technologies, spared no effort to take part in the battle of pollution prevention and treatment and focused on the campaign of "investigating unpleasant odor by all employees". Consequently, the target of main pollutant emission reduction was accomplished on schedule and hazardous wastes were completely properly disposed. SPC took the initiative to undertake more social responsibilities, proactively promoted the integrated environmental improvement at Jinshan district, supplied national VI standard gasoline and diesel to the market in an all-around way and successfully completed support for safety, environmental protection, harmony and stability of the first session of international import expo.

SPC vigorously built "innovative petrochemical industry" and sped up development of smart plant. The company attached importance to fostering new momentum for innovative development. Therefore, brand new products and advanced technologies have kept on achieving new breakthroughs. SPC's 48K large tow carbon fiber technology has filled the gaps in domestic market. The company has achieved breakthroughs in zero export of carbon fiber products. SPC proactively promoted building of smart plant and was rated as the demonstration enterprise of 2018 intelligent manufacturing pilot projects by the Ministry of Industry and Information Technology of the People's Republic of China.

SPC vigorously built "sharing petrochemical industry" and kept on expanding the Circle of Friends.

The company was committed to building green supply chain to share high quality products and service with cooperative partners. SPC also established linkage and interfacing mechanism with local government, 46 grassroots Party Branches were partnered and co-constructed with 46 village-based Party organizations to jointly build harmonious partnership between enterprises and local government and further enrich the connotation of regionalized Party building. Cumulatively more than 107 sessions of "Public Open Day" programs were held with over 3600 people/times of participation in communication and exchange.

SPC vigorously built "harmonious petrochemical industry" to improve the employees' sense of happiness with great efforts. The company pushed forward the project of "talents-based corporate development" and reform of "three systems", constantly expanded the career development channels for employees, facilitated and motivated employees to contribute themselves to sustainable development of the company. SPC practically assured the employees' various rights and interests by adopting EAP in an all-round way and initiating great health management.

Thanks to the joint efforts of all staff and great support from all walks of life, 2018 is a harvest and fruitful year for SPC. The company was selected as "Constituent Stock of 2018 China SGCX-ESG50 Index (SynTaoGF CaiXin ESG 50 Index)" and granted with the honorary titles of "China Top 100 Enterprises", "Innovation China-Top 100 Listed Companies", "Shanghai Top 100 Enterprises of Two Excellences" and "Green Development Prizes". Here I would like to express my sincere thanks to all SPC staff for their devotion and all sectors of society for their care and support to SPC.

A persevering doer can always achieve success and a persistent walker can always reach the destination. 2019 is the 70th anniversary of the founding of the People's Republic of China and also a crucial year to determine the victory of sustainable development in an all-around way for SPC, in which the petrochemical industry has both opportunities and challenges. Centering on the development target of "building a domestically leading and globally first-class energy and chemical as well as new material company ", SPC will remain true to our original aspiration and stay firm in our great mission of "Love My Country, Revitalize Petrochemical Industry and Provide Energy for Better Living ", adhere to the work concept of "challenging the advanced level and benchmarking the most stringent standard", act as a running dream seeker with the determination and courage of further reform and opening-up on the way of high quality development and present gifts to 70th anniversary of the founding of new China with new performance that lives up to new era.

Chairman Wu Haijun

Mar. 19. 2019

2018 SPC Report on Corporate Social Responsibility 02