China Petroleum & Chemical : 2022 Sinopec Corp. Sustainability Report

Report Information

CONTENTS

The 2022 sustainability report (hereinafter referred to "SR") is the 17th sustainability report of China Petroleum & Chemical Corporation (hereinafter referred to as "Sinopec Corp.", "the Company" or "We"). The report introduces our sustainability philosophy and policies and our environmental protection, social responsibility, and corporate governance (hereinafter referred to as "ESG") performances in 2022, and highlights on how we responded to the expectations and concerns of our stakeholders.

Report Perimeters

This report covers our business activities from 1 January to 31 December 2022, with some content from beyond this time span for continuity reasons. The information herein comes from internal data and relevant public information. Unless otherwise specified, all monetary figures shown in this SR are expressed in RMB (yuan).

Unless otherwise specified, the data in this SR covers the data of Sinopec Corp. and its wholly-owned and controlled subsidiaries.

The Company's Board of Directors reviewed and approved this report on 24 March 2023. The report is available in Chinese and English versions, and the Chinese version shall prevail in case of any conflict or inconsistency. The report can be downloaded at the website:http://www.sinopec.com/listco/en.

References

This report is prepared in accordance with the Guideline for the Self-Regulatory Supervision of Listed Companies of Shanghai Stock Exchange (SSE) No. 1 - Standardised Operation , the Environmental, Social and Governance Reporting Guide issued by Hong Kong Stock Exchange (HKEX), Ten Principles of the United Nations Global Compact (UNGC), and the criteria of the Global Compact Advanced Communication on Progress, and with reference to the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), the 2021 GRI Universal Standards (GRI Standards) and GRI 11: Oil and Gas Sector 2021 issued by the GRI Global Sustainability Standards Board (GSSB).

Disclaimer

This report includes certain forward-looking statements with respect to the results of our business operations and certain plans and conditions. All statements that address activities, events or developments that we expect will or may occur in the future, other than statements of historical fact, are forward-looking statements and by their nature involve risk and uncertainty. This means that actual results may differ materially from those indicated in the forward-looking statement due to a number of factors and uncertainties. The forward-looking statements are made by 24 March 2023 and the Company undertakes no obligation to update these forward-looking statements unless required by an appropriate regulatory authority.

01 03 04 05

Letter from Chairman

Board's Statement on ESG Governance

About Us

Recognition and Awards

103

Key Performance

103 105

Environmental Performance

Social Performance

107

Independent Assurance Report

111

Report Content Indexes

111 114 114 115

HKEX ESG Reporting Guide Content Index

UNGC Ten Principles Index

TCFD Index

UNGC Advanced Level Criteria Index

07 Corporate Governance 65

09 14 17 24 25 28

Sustainability Management

Governance System

Business Integrity and Operation Compliance

Risk Management and Internal Control

Technological Innovation

Digital and Intelligent Development

29 Addressing Climate Change 77

31 37 43

Climate Strategies and Actions

Reducing GHG Emissions

Promoting Energy Transition

49 Protecting the Environment 87

Building a Solid Safety Defence Line

67

69

70

71

74

75

76

Safety Management System

Production Safety

Contractor Safety

Occupational Health

Logistics Safety

Information Security

Security

Respecting Human Rights and Cultivating Talents

79

81 83 86

Respecting and Protecting Human Rights

Human Capital Management

Employee Training and Development

Employee Care

Fulfilling Social Responsibility

116

Feedback

51	Environmental Protection	89	Contributing to Social
Management and Targets	Philanthropy
54	Water Resources Management	93	Sustainable Supply Chain
57	Land Resource Management	95	Community Communication
and Engagement
57	Control of Atmospheric Pollutants
98	Product and Service
59	Solid Waste Management	Management
61	Prevention of Hydrocarbon Leakage	102	Promoting Win-win
Development of the Industry
62	Biodiversity Conservation

Letter from Chairman

Dear Friends,

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

Sustainable development is a "golden key" to addressing the current global challenges. ESG, as a tangible manifestation of a company's development philosophy at the micro-level, aligns closely with the Chinese government's fundamental principles of high-quality development and harmonious coexistence between man and nature. Strengthening ESG governance is a crucial step in fully and accurately executing the new development concept and an inherent necessity for promoting high-quality economic and social growth.

As we navigate through the complex challenges of geopolitical conflicts, energy security, and climate change in 2022, Sinopec Corp. - an integrated energy and chemical company and a LEAD member of the United Nations Global Compact - is resolutely committed to sustainable, low-carbon, safe, and responsible development. We have fully integrated environmental, social, and governance (ESG) considerations into our corporate operations and development strategies. In the past year, we have made significant progress in strengthening corporate governance, ensuring a secure and stable energy supply, promoting green and low-carbon development, driving technological innovation, enhancing safety management, and fulfilling social responsibility.

We strive to improve our corporate governance. The Board of Directors is wholly dedicated to enhancing strategic planning and has thoroughly deliberated and approved the Company's medium and long-term development plans. Our independent directors have carried out their duties and offered valuable suggestions for corporate reform and development. We have revised multiple governance policies to consolidate the institutional foundation for standardised governance and deepened the construction of internal control system to continuously improve its effectiveness. For the first time, we repurchased shares both domestically and overseas to increase our value and shareholder returns. We deeply promoted the "Demonstration Action for Scientific and Technological Reform" to stimulate the impetus and vitality of technological innovation. We have formulated and implemented the Sinopec Medium and Long-term Talent Development Plan in the 14th Five-Year Plan Period to build a team of high-quality and professional talent. We carried out regular audits and supervision to strengthen anti-corruption and continuously enhance our compliance management.

We strive to ensure a secure and stable supply of energy. Regarding upstream oil and gas exploration and production, we have improved our reserve capacity, stabilised oil and gas production, and reduced costs. We have also increased investment in oil and gas exploration and production, achieving new domestic oil andgas production records, reaching a reserve-replacement ratio of 165%, and ensuring natural gas supply for the warmth of millions of households during the heating season. Regarding oil refining and marketing, we have supplied cleaner VIB refined oils and ensured stable supply of refined oil products. We are actively promoting the development of the domestic hydrogen energy industrial chain, ranking the first globally in terms of hydrogen refuelling stations in operation and under construction. We have accelerated the development of charging and battery replacement infrastructure and built over 1,000 charging and battery replacement refuelling stations. Our business in wind power, photovoltaic, and other sectors also developing well, and our bio-jet fuel business has achieved large-scale production and application.

We strive to improve our green and low-carbon competitiveness.

We are committed to promoting carbon peaking and carbon neutrality in an integrated and orderly manner with the launching and implementation of the Action Plan for Carbon Dioxide Peaking Before 2030. Adhering to the principle of "reducing carbon emissions of existing energy consumption, lowering carbon emissions of energy consumption increment, seeking zero carbon emissions, and developing carbon-negative technologies", we have completed and put into operation China's first million-tonne CCUS demonstration project. This achievement has made Sinopec Corp. a technology company with a complete carbon-related industrial chain. We have comprehensively strengthened our environmental compliance management, established a supervision mechanism for ecological and environmental protection, and conducted environmental compliance verification of construction projects. We have continued to deepen pollution prevention and control actions and effectively implemented our "Green Enterprise Campaign". We promoted the protection and restoration of major ecosystems and launched the Sinopec Saihanba Ecological Demonstration Forest Project.

We strive to strengthen technological innovation. We have accelerated the cultivation of innovative enterprises, continuously strengthened the whole-process innovation from basic research to industrial application, and achieved numerous key innovation results. We have made significant breakthroughs in key technologies such as large tow carbon fibre and high-gauge polybutene-1, and new progress in major technologies including the exploration and development of ultra-deep oil/gas, direct crude oil cracking for producing ethylene, and special rubber. We actively promoted digital transformation and enhanced the digitalisation and intelligentisation of our business via demonstration projects such as "Industrial Internet +".

We strive to build a solid line of defence for safety. In response to the once-severe situation of safety production, we took decisivemeasures to strengthen hazard inspection and rectification while increasing supervision on key links. These actions were instrumental in effectively reversing the negative situation. We strengthened the implementation of safety responsibilities, promoted the efficiency of the HSE system, and strengthened emergency management, thereby improving our emergency response capacity. By optimising the allocation of safety equipment and improving the working environment, we have consolidated the foundation of occupational health management, effectively ensuring the physical and mental well-being of our employees.

We strive to fulfil social responsibility. We have made every effort to ensure the supply of petroleum and petrochemical products, maintaining the stability of our industrial chain and supply chain. Our performance in serving the Beijing Winter Olympic Games and the Winter Paralympic Games was highly recognised by all parties. We actively explored distinctive modes of rural revitalisation to promote industrial development with marketing support, boost revitalisation by industry, and enhance rural development through education. During the emergency rescue and disaster relief tasks, we always took promotive actions and donated funds and relief supplies. We further implemented public welfare and charity projects such as "Spring Bud Gas Station Programme", "Driver's Home Programme" and "Warm Stations Programme", and conducted international business with the concept of "paying back to the local communities and contributing to the local economy", and continued to improve our image as a responsible international company.

Looking ahead to 2023, Sinopec Corp. is determined to accelerate to become a world-leading company, further integrate ESG into all aspects of corporate strategic planning, production and operation, strengthen the top-level design of ESG governance, and consolidate its management foundation, actively participating in the construction of China's ESG ecosystem. We hope to work with stakeholders to promote sustainable development, enter a new stage of high-quality development, and confidently write a new chapter of Sinopec following the Chinese path to modernisation.

We cherish your valuable suggestions for the Company's sustainable development and look forward to joining hands with you to build a better life and create a brighter future!

Ma Yongsheng,

Chairman March 24, 2023

Board's Statement on ESG Governance

The Company's Board of Directors made the following statement in accordance with the requirements of the Environmental, Social and Governance Reporting Guidelines of the Stock Exchange of Hong Kong Limited (hereinafter referred to as the "Hong Kong Stock Exchange").

The Board of the Company promises that the Company and its Board of Directors strive to follow the Requirements of the Guidelines for the Governance of Listed Companies issued by the China Securities Regulatory Commission, and theEnvironmental, Social and Governance Reporting Guidelines issued by Hong Kong Stock Exchange, and continuously optimise its environmental, social and corporate governance mechanism. We will further strengthen the Board's role in supervising and participation in ESG related issues, and vigorously integrate ESG considerations into the Company's major decision-making processes and various business practices.

Board's Role in ESG Governance

The Board of Directors is the highest responsibility and decision-making agency, bearing the ultimate responsibility for Sinopec Corp.'s ESG governance. The Sustainability Committee under the Board of Directors is responsible for overseeing and deliberating the implementation and progress of the Company's sustainability and ESG strategies and plans; overseeing the commitments and performances of the Company on key ESG issues such as climate change, environmental protection and compliance management; overseeing key information regarding sustainability issues related to the Company's businesses and approving the Company's annual

ESG Management Strategy and Policy

The Company attaches great importance to ESG management, adheres to the development concept of "innovation, coordination, green, open, and sharing", and deeply implements development strategies of "value-leading, market-oriented, innovation-driven, green and clean, open and cooperation, and talents to revitalise the enterprise". The Company analyses ESG-related risks andopportunities in the context of macro policies, socio-economic

Targets, Indicators and Review of Progresses

The Company has established an ESG target management mechanism, and set up ESG performance targets in its development plans and key tasks, such as clean energy, climate change, environmental protection, resource utilisation, safe production management, occupational health and safety, anti-corruption and compliance, etc. The Sustainability Committee regularly reviews the progress of the targets and reports it to the Board of Directors. To ensure the achievement of these targets,sustainability reports; coordinating with other committees and functional departments to incorporate ESG factors into internal control, risk management, strategic planning, remuneration and incentives, etc., and reporting ESG performances and major plans to the Board of Directors. The Sustainability Committee is composed of four directors, including one independent director, with Chairman of the Board serves as the chairperson of the Committee. The Committee convenes at least once each year, and can hold ad hoc meetings when necessary. The Committee shall inform the Board on ESG related issues in a timely manner.

environment, and the strategy, production and operation, and stakeholder engagement of the Company. It also carries out materiality analysis by conducting stakeholder research and expert consultation, to identify key ESG issues for the Company's development, continuously optimise its ESG governance and risk control, and improve the overall ESG management level.

the Company signs annual performance commitment documents with management staff and subsidiaries to integrate part of key ESG performance indicators as the KPIs for key management staff. To ensure the reliability of our ESG performance indicators, the Company hired KPMG Hua Zhen LLP to conduct an independent assurance of the Sinopec Corp. 2022 Sustainability Report, and issue independent assurance opinions regarding 18 ESG performance indicators of the Company.

China Petroleum & Chemical Corporation Board of Directors

March 24, 2023

About Us

Sinopec Corp. was established on February 25 in 2000, listed in the Hong Kong Stock Exchange, New York Stock Exchange and London Stock Exchange in October 2000 and the Shanghai Stock Exchange in August 2001. Sinopec Corp. is one of the largest integrated energy and chemical companies in China, with its business scope all over the world, mainly including oil and gas exploration and production, oil refining, oil sales and chemical industry. It is a large oil and gas and petrochemical product manufacturer in China and has a complete sales network of refined oil and chemical products in China.

• • Sinopec Corp.'s main oil and gas assets are located in China. We only participate in four joint projects overseas, including UDM in Russia, Block 18 in Angola, CIR in Kazakhstan, and Mansarovar in Colombia respectively, and there is not any other oil and gas assets overseas.

  Exploration and Production

• • In 2022, Sinopec Corp.'s crude oil production was 280.86 million barrels and natural gas production was 1,248.75 billion cubic feet.

Refining

• • Sinopec Corp.'s primary refining facilities are located in China. Overseas, we hold shares in a refining joint venture project in Yanbu, Saudi Arabia.

• • In 2022, Sinopec Corp. processed 242.27 million tonnes of crude oil and produced 140.15 million tonnes of refined oil products.

• • Sinopec Corp.'s primary chemical production facilities are located in China, producing synthetic resin, synthetic fibre, synthetic rubber, basic organic chemicals and other petrochemical products. The only overseas projects include the Sibul project and the Amur project under construction.

  Chemicals

• • In 2022, Sinopec Corp. produced 13.44 million tonnes of ethylene.

Technology R&D

• • We have four State Key Laboratories, five National Engineering Research Centres, a National-Provincial Joint Engineering Research Centre, a National Engineering Lab, four National Energy R&D (Experiment) Centres, a National Testing and Evaluation Platform, and two State-Certified Enterprise Technology Centres.

• • As of the end of 2022, Sinopec Corp. had been granted 49,852 patents cumulatively, of which 6,289 were granted within the year.

Recognition and Awards

China Newsweek

Responsible Enterprise in 2022

The only Chinese central state-owned enterprise that has won this honour for 12 consecutive years

China Social Responsibility 100 Forum Chinese Central State-owned Enterprises ESG · Pioneer 50

Chinese Central State-owned Enterprises Responsibility Management · Pioneer 30