(A joint stock limited company incorporated in the People's Republic of China)
Stock code: 00338 Hong Kong 600688 Shanghai
TO PROVIDE ENERGY FOR BETTER LIVING
TO BUILD "LEADING DOMESTICALLY, FIRST-CLASS GLOBALLY" ENERGY AND CHEMICAL AND NEW MATERIAL ENTERPRISE
PEOPLE, RESPONSIBILITY, INTEGRITY, PRECISION, INNOVATION, SHARED VALUES
BEING DEDICATED TO BE A CULTURED PERSON, OBSERVING REGULATIONS TO BE AN HONEST PERSON, STAYING COURTEOUS AND TRUSTWORTHY TO BE A CIVILIZED PERSON
Revitalize petrochemical industry with an innovative and pragmatic mindset
Create value in good faith
Develop business through win-win cooperation
Safe operations, low-carbon and green development
People foremost, benefit the staff
Fulfill responsibilities and serve the society
2020 is an extraordinary year, which is a long journey full of hardships. In the past one year, COVID-19 has spread all over the world, the terminal demand has dropped sharply, the international oil prices have remained low, the plastic bans have emerged and climate change is getting more and more attention, all of which have brought about significant and far-reaching impact on the future of the petrochemical industry, and the entire industry has faced unprecedented complicated business environment.
However long the road is, a persistent walker can always reach the destination. During the spread of the epidemic, shouldering the responsibility of acting as one of China's largest suppliers of medical and health materials, we managed to develop and switch to the production of special materials for melt-blown fabric within 12 days, ensuring the supply of medical materials in a timely manner in contribution to the prevention and control of the epidemic. During the regular prevention and control of epidemic, we actively promoted the work and production resumption of upstream and downstream industries as well as medium and small enterprises to boost the stability of the industrial chain and supply chain. In daily operations, closely focusing on the major needs of the state's high-quality development and the people's desire for a better life, we firmly established the concept of "challenging the advanced level and benchmarking the highest standard", shared the same target at all levels and made concerted efforts. As a result, we achieved the operation revenue of 74.705 billion RMB and made total tax payment of 15.119 billion RMB. The operating performance was better than expected, and the targets set in the "13th Five-Year Plan" were successfully hit.
We insisted on transformation and development. Following the new development concept of "one flagship, one core, and one base", we accelerated the pace of industrial transformation and upgrade. The refining sector focused on promoting clean production and product mix optimization and modification. Adhering to the development orientation of "basics + high-end" and with a focus on carbon fiber, the chemical and materials sector developed elastomers, polyolefins, polyesters and new materials, and actively explored new energy businesses. With constant emerging of star products, such as 48K large tow carbon fiber, cutting-edge high-toughness polyester engineering plastics, high-density polyethylene "black material", we provide customers with advanced high value-added raw materials and solutions.
We insisted on innovative development. With a technology-leading company as the target, we founded an advanced materials innovation research institute to start a new journey of technological innovation; we benchmarked world-class technology management and created a more flexible and efficient technological innovation management system. Focusing on breakthroughs in key core technologies and strengthening core technological research of carbon fiber, we have obtained proprietary intellectual property rights of carbon fiber precursors and packaged technologies, and have possessed 165 carbon fiber related patents; we strengthened industrial strategic cooperation and innovation, and promoted capitalization and industrialization of technological innovation.
We insisted on green development. With "cleanness, high-efficiency, low-carbon, and recycling" as essential characteristics, with the most advanced environmental indicators, the most stringent
quality indicators, and the most efficient energy consumption indicators as the standards, we further promoted green enterprise construction. We strengthened the innovation, promotion and application of green clean processes and new technologies, focused on source prevention and control, process control, and integrated treatment; we established a boundary pollutant alarm and odor traceability work mechanism, and the boundary VOCs concentration has been close to the level of chemical parks in developed countries; we promoted the Process Safety Management system (PSM) in an all-around way, achieving safer and more stable production and operation; we conducted the establishment of "green base", and 47% of SPC's basic units have completed the establishment.
We insisted on shared development. We upheld the "people foremost" concept, respected the individuality of employees, safeguarded the vital interests of employees, and significantly improved corporate cohesion; we safeguarded the rights and interests of investors and shared the corporate development achievements with stakeholders.
We insisted on integrated development. We proactively involve ourselves in the construction of Shanghai Science and Technology Innovation Center, and focused on making key and core technological breakthrough and industrial innovation; we proactively got involved in the construction of Shanghai "Carbon Valley Green Bay" carbon fiber industrial cluster area and participated in the construction of Shanghai 10 billion-level carbon fiber composite industrial cluster; we promoted the integrated development of enterprise and local government for high-end new materials industry and improved the energy level of regional industrial development.
We insisted on benchmarking against world-class standards and accelerated the development of a market entity with core competitiveness. In 2020, SPC was granted the title of National Civilized Enterprise for six consecutive sessions, the honorary titles such as "CIIF New Material Award" of the 22nd China International Industry Fair, Class A evaluation of Shanghai Stock Exchange information disclosure, "Gold Award of Panoramic Investor Relations (2019)-Outstanding IR (Investor Relations) Enterprise". "If you persist in doing it regardless of any difficulty, you will achieve success sometime." We are firmly moving towards the vision of "leading domestically, first-class globally" energy and chemical and new material enterprise. Please support us as always.
2021 is the starting year of the "14th Five-Year Plan" and also a crucial year for SPC to achieve high-quality sustainable development. At the beginning of the new year, as a major industrial project in Shanghai, the "SPC's 12,000 t/a 48K Large Tow Carbon Fiber Project" officially started construction. Our large tow carbon fiber has successfully embarked on the road of large-scale production from R&D and trial production. At a new starting point, carrying the great mission of "substituting imported products with domestic products and promoting 'Made in China'", we will work hard and spare no effort to move forward.
SPC'S RESPONSIBILITY PERFORMANCE SHEET
Economic performance indicators
Earnings per share
Quantity of applications for invention patents
Contract performance rate
One-time settlement rate of complaints through customer service telephone
Product spot check qualification rate
Bidding purchase rate
Manufacturers' direct supply rate
Ratio of suppliers' obtaining ISO14000 environmental management system certification
0.21 65 96.35 97.66
100 100 92.34 99.70 61.83
0.49 63 93.71 97.93
100 100 90.47 99.60 54.10
Social performance indicators
Total tax paid
Coverage rate of anti-commercial bribery training
Labor contract conclusion rate
Coverage rate of collective contracts
Social insurance coverage rate
Proportion of female management staff
Incidence of occupational diseases
Number of occupational safety and health trainees
Coverage rate of physical examination
Input into relief of poverty-stricken employees
Proportion of female employees
Proportion of local employment
Employee turnover rate
Safety performance indicators
Annual morality rate of employees' work injuries
Annual rate of employees' serious injuries
Number of major fire and explosion incidents
Number of major environmental pollution incidents
Number of major incidents of occupational hazards
Major incidents of chemical spills
Major traffic accidents
Major liability incidents
Mortality rate per million man-hours
Input into work safety
Number of employees' leave of work-related injuries
Incident rate of work-related injuries
Environmental performance indicators
Total environmental investment
Fresh water consumption
Discharge of ammonia nitrogen
Discharge of waste gas
Discharge of nitrogen oxides
Total consumption of industrial energy
Electricity consumption (excluding external power supply)
CO2 discharge per unit operation revenue
Discharge of hazardous wastes
Discharge of non-hazardous wastes
Comprehensive recycling volume of sludge
Frequency of major leakage of chemicals
1.49 72.37 1.91
0.96 81.54 1.71
Sinopec Shanghai Petrochemical Co., Ltd. (hereinafter referred to as SPC), a holding subsidiary of China Petroleum & Chemical Corporation, is located in Jinshan District, Shanghai, whose predecessor was Shanghai Petrochemical Complex that was founded in 1972. In 1993, as a result of standardized reform of shareholding system for the state-owned enterprises, SPC is one of the major integrated refining and chemical enterprises and also an important production base of oil products, intermediate petrochemical products, synthetic resin and synthetic fiber in China.
In 2020, following the requirements of "combating epidemic, stabilizing growth, and pursuing development", SPC made great efforts to practice "three focuses and three implementations". Focused on "combating epidemic" and implemented the requirements of "strict prevention and control of epidemic, resumption of work and production"; focused on "stabilizing growth" and implemented the responsibility of "shouldering heavy loads and making more contributions"; focused on "pursuing development" and implemented the concept of "green development, innovative development".
Total tax paid
Number of employees
Successfully and swiftly developed special materials for mask melt-blown fabric in 12 days. Successfully completed the production of 6,600 tons of polypropylene medical materials.
Sucessfully kickstarted the commissioning and startup 400 KTA oil product cleaning project of SPC and brought new profit growth.
SPC Advanced Materials Innovation Research Institute was formally established, starting a new journey of technological innovation.
The state-of-the-art high-toughness polyester engineering plastic that was developed through cooperation won the prize at the 22nd China International Industry Fair.
Took the lead in using the AGV technique intelligent material warehouse, and moved towards the goal of developing a green intelligent material supply chain.
Inheriting the petroleum spirit of honesty and strictness, SPC was granted with the National Civilized Enterprise for six consecutive sessions.
Corporate culture is the key to formation of enterprise core competitiveness and also the impetus of corporate development. Excellent corporate culture is the soul of corporate management, the spiritual core that builds employees cohesion, and an important component of corporate development strategy. SPC's core value concept system includes corporate mission, corporate vision, corporate values, corporate style, professional conduct、etc., which are continuously innovated and developed in practice.
Adhering to the "two-mountain theory" and the idea that "the environmental protection standards of central government-owned enterprises must be higher than the national standards", and completing the task of comprehensive environmental improvement on time. Continuing to carry out activities such as full coverage of LDAR, "Identification of odor by all employees" and "Perfect Day" (a day with zero incident, zero injuries, zero damage to environment), vigorously implemented energy efficiency improvement plans, and consolidated the achievements of green enterprises creation.
Guided by President Xi Jinping's thought on socialism with Chinese characteristics for a new era and based on the overall development of Sinopec's Shanghai base, SPC thoroughly implemented the new development concept, highlighted green development and innovative development, prepared SPC's"14th
Driving integrative development by planning through top management
Refining the specific measures of "one flagship, one core, one base" and promoted their implementation. Developingbusiness such as high-end clean oil products, carbon fiber new materials, and new energy development of "wind power + hydrogen energy" through industrial linkage development and cluster concentration, so as to achieve integrative development with surrounding chemical zones.
Implementinggreen development through emission reduction from the source
Five-Year" development plan, spared no effort to promote structural optimization, transformation and upgrade, fully integrated into the construction of Shanghai "five centers", and focused on building the world leading green chemical base enterprise.
Boosting innovative development through technological innovations
Accelerating the construction of a new material innovation center, and promoting the transformation and development of new materials such as carbon fiber and polyolefin. Strengthening the application of new technologies such as big data, artificial intelligence, Internet of Things, and 5G, and deepened the construction of smart plant. Promoting management innovation and institutional innovation with technological innovation.
Sources of topics
Standard for screening of topics
Matrix for assessment of the importance of social responsibility topics
Based upon the relevant requirements for social responsibility management in the "Guidelines for Report on Environment, Society and Governance" of the Stock Exchange and the "Guidelines for Sustainable Development Report" of the Global Initiative, the Company continuously improved the social responsibility management structure, strengthened ESG supervision, and regulated the duties and processes of social responsibility work. The Company's board of directors attached great importance to the preparation of the social responsibility report, and required that the social responsibility report should reflect the Company's responsibility owed to investors, customers, employees, governments, partners and other stakeholders. In terms of the selection of topics, it must identify the Company's key areas of impact on society, economy, and environment, and establish a harmonious development and benefit-sharing relationship with stakeholders. The social responsibility reports over the past years have been disclosed to the public after being reviewed by the board of directors.
Governments and supervisory agencies
◆ Legal operations
◆ Safe and reliable products
◆ Implementation of energy conservation and emission reduction
◆ Promote industry progress
◆ Serve national economy and the people's livelihood
◆ Maintain good operating performance
◆ Ensure stable operation
◆ Strengthen disclosure of operation information
◆ Serve customers and create value
◆ Satisfy customers' diversified demand
◆ Provide premium quality products and services
Recommendations of the Company's internal management
Analysis and judgment of internal and external experts
Analysis of various media information
Industrial benchmarking and analysis at home and abroad Making reference to guidelines for standards of social responsibility Proposals of employees' democratic activities and worker's congress Customers' main concerns Conclusion of strategic cooperation agreement with governments Feedback from suppliers Solicitation of opinions of communities and the public
The same industry and industry organizations
◆ Win-win cooperation
◆ Industry contributions
◆ Fair operations
◆ Ensure occupational health
◆ Safeguard employees' rights and interests
◆ Improve occupational skills
◆ Provide platforms of development
◆ Achieve work life balanceStakeholders' general great concerns
Significant contributions to sustainable development Highlights of guidelines for social responsibility
Compatibility with the Company's development strategy
Energy management and climate changes
Water managementAir pollution management
4 Hazardous wastes management
5 Biodiversity protection
6 Rate of resource utilization
7 Work safety
8 Product quality
9 Staff development
10 Health of staff
11 Supply chain management
12 Investor relation management
14 Co-construction of community
Suppliers and partners
◆ Open, fair and just procurement
◆ Honor credibility and keep promise
◆ Mutual benefit and win-win
◆ Co-construction of community
◆ Support charity
◆ Environmental protection
◆ Fix-point poverty alleviation
SUSTAINABLE DEVELOPMENT MANAGEMENT
The Company strictly abided by the "Corporate Law of the People's Republic of China", "Securities Law of the People's Republic of China", and other laws and regulations, as well as the applicable regulations and provisions contained in the "Guidelines for Environmental, Social and Governance Reporting"; gave full play to the leading role of high-quality Party building, and continuously improved the governance structure of defined powers and responsibilities for the board of directors, the board of supervisors and the management level, with each performing their own duties, exercising effective checks and balances, making scientific decisions, and conductingoperations in a coordinated manner; effectively interfaced the social responsibility with corporate development strategies; unswervingly promoted the construction of a responsibility governance system including six aspects such as responsibility strategy, responsibility governance, responsibility integration, responsibility performance, responsibility communication, and responsibility capabilities; and incorporated social responsibility governance into all aspects of the company's production and operation, providing important support in building "leading domestically, first-class globally" energy and chemical and new material enterprise.
In 2020, the Company totally held 7 sessions of BOD meeting, 2 sessions of board of supervisors' meeting, and 1 session of shareholders' meeting. The BOD meetings reviewed and adopted 30 proposalsi n total, the board of supervisors' meetings reviewed and adopted 8 proposals in total, and shareholders' meeting reviewed and adopted 11 proposals.
Responsibility incorporationResponsibility performance
Communication of responsibilities
Continue to make breakthroughs and create benefit Deepen reform and innovation
Prevent and resolve risks Comprehensively strengthen the Party disciplineGreen enterprise establishment steering group
Legal corporate governance steering group Deepening reform steering group HSSE supervision management committee
Corporate culture development steering group Informatization steering group Retiree management steering group
Strategic decision-making Crisis management Co-construction of community Staff development Green supply chain management
Investors' relationship managementHSSE responsibility performance
Production operation responsibility performance Engineering construction responsibility performance Technical and economic responsibility performance Technical progress responsibility performance
Talent team development performanceMedia convergence publicity platform Public Open Day program
Publication of social responsibility report Babysbreath volunteer service Sunshine supply chain Carry out community Party building pairing
◆ Won the second prize of National Science and Technology Progress
◆ Won the title of the 6th session of National Civilized Enterprise Was awarded "China's Highest Annual Output of Isoprene"
Was awarded "China's Highest Annual Output of Dicyclopentadiene"
Strategic decision-making Safety and environment
Profitability Corporate culture System building Occupational health
Was awarded "China's High-quality Producer of Isoprene, Piperylene and Dicyclopentadiene"
Won the "CIIF New Material Award" at the 22nd CIIF (China International Industry Fair) Was awarded "Shanghai Contract-abiding and Credit-Reliable Enterprise (AAA Level) in 2018-2019"
Won the "Second Prize" in the comprehensive evaluation of statistical work in the field of investment and construction in Shanghai in 2020
Was awarded "Class A Evaluation of Information Disclosure of Shanghai Stock Exchange"
Was awarded "2019 Shanghai Safety Model Enterprise"
Was awarded Shanghai "Patriotic & Army Supporting Model Enterprise (2019)" Was awarded Shanghai "Model Enterprise for Conscription Work in 2019" Was awarded the Shanghai "2019 Quality Benchmarking Unit"
Won the "Third Prize" of Shanghai key product quality breakthrough achievement award in 2020
REVITALIZE PETROCHEMICAL INDUSTRY WITH AN INNOVATIVE AND PRAGMATIC MINDSET
Facing the unprecedented challenges brought about by the unprecedented changes in the past century, SPC firmly established the concept of "challenging the advanced level and benchmarking the highest standard", and was committed to filling the domestic gap by focusing on promoting technical breakthroughs and product applications of new materials such as carbon fiber, polyolefin, elastomer, etc. in accordance with the deployment of "one flagship, one core, and one base".
01 Focus on high-end supply
02 Make innovations in petrochemical technology
03 Jointly develop SPC quality
04 Build smart plant
FOCUS ON HIGH-END SUPPLY
In 2020, facing the severe challenges brought about by the unprecedented complex environment of the global petrochemical industry, SPC adhered to the concept of "challenging the advanced level and benchmarking the highest standard", adhered to the development direction of "basic + high-end", actively boosted the new material industry with carbon fiber as the core, was committed to filling the domestic gaps, promoted the substitution of imported products with domestic products and promoting 'Made in China'".
Decline in international demand due to the epidemic impact
Reduced output of jet fuel oil
Economic globalization encountered a countercurrent
Substitution of import in new materials industry
Significant drop of ethylene price
Increased the total amount of polyolefin products
Intensified competition in the homogeneity of basic chemicals
Provided differentiated, high value-added products
Increasing constraints on green development of petrochemical industry
Providing cleaner refining products and optimization of product mix
Pressing demand for petrochemical products under concerns about climate change
Development and production of climate-friendly products
SPC'S MAIN PRODUCT OUTPUT IN 2020 (10 K TONS)
DEVELOP A CORE CARBON FIBER INDUSTRY
Carbon fiber is called "black gold" and is classified as a new material field that relies heavily on imports. As the first domestic enterprise to make breakthroughs in 48K large tow carbon fiber industrialization technology, SPC considers carbon fiber as the core industry and continuously expands its application space.
BUILDING REINFORCEMENT Carbon fiber reinforced cloth, pultruded sheet. Completed 11,000 m² piping reinforcement, demonstration applications of 6 infrastructure reinforcement projects
Carbon fiber reinforced PPS/PEEK centralizer, valve bonnetENERGY TRANSPORT Carbon fiber underground double-layer oil tank
Carbon fiber reinforced PEEK isolation element Carbon fiber reinforced PEEK filter plate
Carbon fiber reinforced tank truck Carbon fiber wound gas cylinder
Gasoline vehicle emissions (mg/km)
Europe 5 Europe 6
VI A VI B
FOCUS ON INDEPENDENT RESEARCH AND DEVELOPMENT OF NEW PRODUCTS
SPC has always considered independent research and development of new products as the acting point of product mix optimization and adjustment, continued to strengthen the integration of new product production, marketing, research and application, and achieved self-improvement of quality and efficiency while providing solutions for replacing imports.
SPC produced National VI B standard motor gasoline for the first time and supplied it to Guangxi and Yunnan through pipelines. The National Six B standard gasoline has higher quality requirements and is cleaner and more environmentally friendly.
The state-of-the-art high-toughness polyester engineering plastics has solved the key technical problems in the polyester sheet forming process, filled the domestic production technology and product gaps of the base material for polyester sheets, and realized the first domestic industrial production in China.
The high-density polyethylene black pipe material has met the domestic manufacturing performance requirements for large-diameter gas pipes over 800 mm, which has successfully ended the foreign technology monopoly, and substituted imported ones.
PRODUCT DIFFERENTIATION RATE 89.26%
Attach importance to differentiated competition
Customized production and personalized service are important means for SPC to achieve product differentiated competition. Through customization, we can form a close cooperative relationship with upstream and downstream units, enhance customer stickiness, and effectively expand downstream markets.
MAKE INNOVATIONS IN PETROCHEMICAL TECHNOLOGY
In 2020, SPC considered innovative development as a strategic measure to cope with the challenges brought about by unprecedented changes in a century, proactively served the state's important strategic positioning for the development of cutting-edge materials and the demand for the construction of Shanghai Science and Technology Innovation Center, with carbon fiber and other cutting-edge materials as the core to strengthen independent research and development and cooperative innovation, improvedthe mechanism of scientific research management systems, and encouraged innovation through benchmarking with world-class technology management.
In 2020, SPC won a total of 17 national invention patent authorizations, and SPC's project of "Optimization Control Technology for Maximizing the Benefit of Ethylene Plant" won the second prize of the National Science and Technology Progress Award.
IMPLEMENTED THE PROJECT LEADER RESPONSIBILITY SYSTEM
OPTIMIZED THE MANAGEMENT PROCESS OF SCIENTIFIC RESEARCH PROJECT
Strengthened regular follow-up of the progress of scientific research projects Established an assessment notification mechanism Promoting regular work review and correction mechanism of scientific research projects
Promoted the decentralization of approval for research projects in the field of self-financing new materials
Relaxed the budget and approval authority of a single self-approved project
IMPROVED THE INCENTIVE MECHANISM FOR SCIENTIFIC RESEARCH
Empowered the scientific research project leader with greater autonomy in the use of funds
Closed and modular unit for demulsification of refinery sewageMixed anaerobic treatment technology for chemical wastewaterDevelopment of FCC slurry flexible desolidification technology (RSFF)
48K large tow carbon fiber
Foamed polypropylene product series
Joined in the "Large Aircraft Composite Material Innovation Center"
Made a breakthrough in application of
Rail transit the key core technology of carbon fiber in the field of rail transit
Conducted R&D of carbon fiber train
Maglev train body parts for maglev trains
Jointly declared "Shanghai Engineering Technology Research Center for Civil Engineering Application of Carbon Fiber Composite Materials" with China Construction Eighth Engineering Division
Strategic cooperation platform for carbon fiber technological innovation
SPC gave play to the technology and resource advantages of carbon fiber raw material preparation to promote the research and application of domestic carbon fiber technology
JOINTLY DEVELOP SPC QUALITY
SPC strictly abides by the requirements of the state Product Quality Law of the People's Republic of China, Standardization Law of the People's Republic of China and other laws and regulations, and strives to jointly develop with our customers through mutual benefit and win-win cooperation by considering quality as the core, and customer satisfaction as the tenet.
In 2020, SPC continued to promote the quality management system and improved the optimization and adjustment of management process, enhanced the identification of quality risks, constantly
Improved the quality management system Revised "SPC Rules on Quality Management" and "SPC Rules on Management of Jet Fuel Production"
Formulated "SPC Rules on Management of Asphalt Production"
improved the quality management efficiency and accuracy. SPC's product compliance rate reached 100% throughout 2020. There were no quality incidents and SPC didn't receive any complaints about product quality throughout the year of 2020. No products sold had been recalled due to quality problems.
During the reporting period, SPC was not aware of any serious violation of laws and regulations on health and safety, advertising, labeling and privacy matters as well as remedies related to the products and services provided, which had a significant impact on the Company.
Improved quality management efficiency
Held quality education and training Established a new mechanism of quality analysis and management of simulation charge
Strengthened daily production control
Monthly inspection of production units
Organized production units to conduct self-inspection
Identified quality risks in a timely manner
Strengthened the application of online quality instrument
Ensured controllable "source" quality
Organized review of the supplier management system
Conducted evaluation and management of incoming raw and auxiliary materials strictly in accordance with the raw and auxiliary material standards
Off-spec. raw materials must undergo process review to confirm the disposal plan
Strictly controlled the plant product delivery quality
Established product internal control indicators
Controlled the plant product delivery quality risks within the enterprise
Food related products
Passed Shanghai Municipal Market Supervision Bureau's on-site assessment of SPC's non-licensed food-related product manufacturers' quality and safety assurance capabilities
BUILD SMART PLANT
In 2020, SPC focused on the application direction of new generation information technology and intelligent manufacturing, comprehensively boosted the development of information technology, was committed to promoting the construction of smart plant, fostered new capability that is compatible with enterprise strategy and has sustainable competitive advantages and promoted SPC's intelligent
In 2020, SPC's "Smart Plant Promotion Project" was approved by Sinopec; SPC's project of "Smart Plant Construction Practice with the Integration of Informatization and Industrialization as the Core" was awarded the first prize of innovation achievements in modernization of enterprise management by Shanghai.
of 35 information
of smart plant
platforms with 12
scheduling for crude
categories of data
terrain and ground
process for SPC's
The robot "warehouse keeper" was put into operation
SPC's intelligent warehousing project was put into operation. The intelligent warehouse stores and manages 16 major categories and a total of 2351 varieties of materials. The project filled the gap of intelligent warehouse management in the company's intelligent material management system and realized the goal of unmanned integrated warehouse.
Increased warehouse utilization
Increased work efficiencyAccuracy of warehouse receipt/delivery
CREATE VALUE IN GOOD FAITH
SPC has always insisted on compliance with laws and regulations and honest management, abided by business ethics, kept in mind the supremacy of customers, improved competitiveness in open cooperation and mutual benefit, and enhanced development capability and value creation with customers and partners under mutual understanding and trust.
JOINTLY CREATE VALUE WITH OUR CUSTOMERS
Adhering to the concept of serving customers, SPC continuously improves product quality, innovates customer service channels, and repays customers with premium products and services.
SPC adheres to integrity management and abides by business ethics; abides by laws and regulations, and establishes a compliance management system with compliance management, compliance review, and investigation of violations.
Established the compliance system
Conducted demonstrations on the legality and compliance of major investments, revised and improved the "SPC's Administrative Measures for Industrial and Commercial Affairs"
Released the guidelines for compliance inspection in epidemic prevention and control, and carried out response to epidemic risks for contract business
Strengthened the building of a strong legal work team
Organized legal staff to participate in business training on legal corporate governance and compliance management
Organized training courses such as "Management of Corporate
Governance according to Laws and Regulations", "Cases of Labor Contract Disputes"
Developed employee compliance awareness
Formulated "SPC's Work Arrangements for the Legal Cultural
Construction in 2020"
Carried out legal publicity and education themed "April 15 National
Safety Day for All the People" and the Civil Code
SPC continues to practice the service concept of "Do it right now" and provides customers with satisfactory professional services with products of "high quality and sufficient quantity".
Issue a notice on epidemic prevention and control
Online contactless business handover Coordinate the delivery of hazardous chemicals during daylight saving time.
Expedite logistics and delivery for customers who produce medical supplies and make delivery for them within 24 hours, reflecting higher efficiency and quicker service.
In the face of the severe COVID-19 and the sharp swing of international crude oil, SPC faced the challenges and won the "double victory" of epidemic prevention & control and production & operation.
SPC cumulatively increased bene t through online platform as follows
Cumulative transaction volume through online platform
Cumulative increase of revenue
6.0310 K RMB
Cumulative transaction volume through online platform
Cumulative increase of revenue
1019.1510 K RMB
Cumulative transaction volume through online platform
Cumulative increase of revenue
119.1710 K RMB
Cumulative transaction volume through online platform
Cumulative increase of revenue
1144.3510 K RMB
SPC has always attached importance to peer exchanges and practical cooperation,and actively expanded new platforms to achieve mutual benefit and win-win with all stakeholders and promote sustainable development of the industry.
BUILD RESPONSIBLE SUPPLY CHAIN
With targets of "safety, timeliness, greenness and economy", SPC continuously establishes and improves the supplier management system, and jointly creates the future with suppliers for mutual benefit and win-win.
Upgrade intelligent supply chain
Deepen green purchase
Give priority to green products, improve the green procurement catalog, and boost green tendering procurement model throughout the full life cycle.
Strengthen supplier access
Screen the suppliers' qualification and implement dynamic clearance or prohibition of access strictly in accordance with the "SPC's Regulations on Management of Supply Resources for Material Procurement.
Promote the intelligent material system to improve efficiency; fill the gap of intelligent warehousing and realize intelligent management.
Improve the supplier assessment system
Perform quantitative assessment on suppliers, use balanced scorecards to build the assessment system, and establish the supplier reward mechanism.
Strengthen suppliers' risk management
Strengthen the implementation of responsibilities, promote the HSSE management, set up the concept of risk management for all employees from the three dimensions of safety, operation and integrity, and improve the risk management mechanism.
In 2020, SPC held on-site exchange meeting for material procurement management to further improve the level of material supply management and promote exchanges.
In 2020, 1434 suppliers had service relationships with SPC, including 824 transaction suppliers, involving 24 provinces
(cities) throughout China.
40.00% 35.00% 30.00% 25.00% 20.00% 10.00% 5.00% 0.00%
■ Number of suppliers ■ Proportion of suppliers
Note: The number and proportion of suppliers in other provinces (cities) in the above bar chart are: Henan (9,1.09%), Sichuan (8,0.97%), Jiangxi
(8,0.97%), Hunan (7,0.85) %), Fujian (7,0.85%), Heilongjiang (6,0.73%), Gansu (6,0.73%), Shaanxi (5,0.61%), Tianjin (4,0.49%), Chongqing (3,0.36%), Yunnan (1,0.12%), Ningxia (1,0.12%), Jilin (1,0.12%), Guangxi (1,0.12%).
DEVELOP BUSINESS THROUGH WIN-WIN COOPERATION
As the first listed company listed on the stock markets in Shanghai, Hong Kong and New York, SPC strictly abided by the securities supervision rules and regulations of the listing exchanges, strived to reduce costs and increase benefit, and improve operating performance with operating efficiency as the startingpoint. In the meantime, SPC strictly implemented various information disclosure systems, innovated investor relation management, attached importance to investors' opinions and feedback, and earnestly safeguarded the investors' interests.
IMPROVE OPERATION PERFORMANCE
In 2020, SPC put forth effort to expand the market, reduce costs, improve benefit, consolidate the foundation, and strived to win both epidemic prevention & control and production & operation.
SPC benchmarked advanced enterprises in the industry, constantly reduced the costs in links such as production, procurement, sales, transportation, etc., took multiple measures at the same time to increase corporate benefit with great efforts
Expansion of market and marketing
Production on demand
Increase production of high value-added products Adopt the "progressive benefit increasing-based production scheduling method"
Optimize marketing and expand market share
Scientific research and judgment, accurate identification of market conditions
Innovate to create smart warehouses
Build an efficient logistics system
Purchase low-fugitive-emission valves
Produce polyethylene black pipe material
Expand overseas markets
Build smart warehousing
In 2020, SPC focused on optimizing the product mix and reducing costs by increasing the production of chemical light oil to ensure feedstock for steam cracker and CCR.
SAFEGUARD INVESTORS' RIGHTS AND INTERESTS
In 2020, affected by the epidemic, SPC developed new information disclosure methods, improved the quality of information disclosure, strengthened communication with investors, improved corporate governance, and fully safeguarded the legitimate rights and interests of investors.
Compliant and valid information disclosure
Prepared the annual report, interim report and quarterly report on a regular basis, and updated the 20F form registered at the Securities Regulatory Commission of the USA Published 27 times of provisional reports, including resolutions of BOD and board of supervisors, shareholders' meeting, announcement of abnormal stock price fluctuations etc.
Strictly reviewed the progress and quality of announcement preparation to ensure timely, accurate and complete information disclosure
Effective innovations in investors' relationship management
Affected by the epidemic, SPC actively tried and explored online press conferences and road show of performance presentation
Exchanged and communicated with investors and media reporters via telephone to ensure open and unblocked communication channels
Attended the online investors' meeting, communicated with fund managers, securities analysts, and shareholders, and highlighted the corporate value
Standardized and efficient operation of three boards
Formulated work plans, completed the re-election of the board of directors and the board of supervisors upon expiration of term of office
Standardized daily connected transactions and prevented potential legal risks Prepared to convene board meetings to review relevant proposals
In 2020, SPC listened to the voice of investors through "E-Interaction of Shanghai Stock Exchange ", and actively responded to investors' concerns, which was highly recognized by investors.
Actively responded to investor concerns through "E-interaction of Shanghai Stock Exchange"
SAFE OPERATIONS, LOW-CARBON AND GREEN DEVELOPMENT
Considering safe development, green and low-carbon development as the prerequisite and foundation for corporate survival and sustainable development, and "cleanness, high-efficiency, low-carbon, and recycling" as the essential characteristics, SPC actively responds to climate change, strengthens safety management, intensifies environmental protection, and develops recycling economy to continuously improve the level of intrinsic safety and environmental protection.
01 Respond to climate change
02 Strengthen safety management
03 Intensify environmental protection
04 Develop recycling economy
RESPOND TO CLIMATE CHANGE
Climate change is still one of the most serious challenges that the world is facing. On December 12, 2020, General Secretary Xi Jinping announced at the Climate Ambition Summit that China will strive to reach the peak of carbon dioxide emissions by 2030 and endeavor to achieve carbon neutrality by 2060. SPC proactively identifies opportunities and challenges incoping with climate change. Guided by the new development concept, SPC will boost energy conservation and emission reduction in the promotion of high-quality development, and promote industrial low-carbon transformation, so as to make petrochemical contribution to the global response to climate change and "China Commitment" in responding to climate change.
China announced that it will increase its national independent contribution, adopt more powerful policies and measures, and make commitments of carbon peaking and carbon neutrality.
Forced industrial transformation
To hit the target of carbon peaking, SPC shall not blindly expand the production capacity. It needs to accelerate the realization of industrial upgrading.
Addressing climate change has become a global consensus, the United States returns to the "Paris Agreement", and the world will carry out extensive cooperation to address climate change
Overall arrangement of emission reduction in advance
Carbon peaking involves two five-year plans, requiring advance planning to create a foundation for achieving carbon peaking during the 15th Five-Year Plan
SPC attaches great importance to carbon peaking and carbon neutrality, integrates response to climate change into the company's development planning, and proactively assumes the responsibility of a petrochemical company.
SPC formulated SPC's 2020 green enterprise action plan, and established the 2020 low-carbon development targets as follows:
Based upon the concept of "dedicating to clean energy and practicing green development", SPC promotes energy transition through oil product upgrading, energy consumption revamp, energy substitution, and technological innovation.
Optimization of cleaner oil products
Revamped to meet the standard of energy consumption by coal power
SPC continued to improve the quality and yield of modified heavy gasoline, reduced the output of low-quality diesel, and completed the construction of 400 KTA alkylation unit.
SPC formulated and promoted the implementation of "SPC Implementation Plan for Revamp of Coal Power Unit to Meet Energy Consumption Standard". As a result, the coal equivalent consumption of power consumption continued to decline.
Development and use of new energy
SPC used natural gas and dry gas to substitute fuel oil and coal, and increased the proportion of clean energy to minimize energy consumption and carbon emissions.
Promote technological innovation for new energy
SPC promoted the innovation of distributed power generation technology, studies coastal, intertidal and offshore wind power facilities, and developed high-purity hydrogen production technology.
Electric power consumption
(100 million kWh)Crude oil consumption
(10 k tons)Natural gas consumption
(100 million m³)Comprehensive energy consumption of oil refining
(kg standard oil/ton)SC high value-added fuel and power consumption
(kg standard oil/ton)
SPC continued to promote the effective operation of the energy management system, boost the contract energy management model, improve energy utilization efficiency and resource utilization level, and achieved the target of "dual control" of total energy consumption and intensity.
Increase responsibilities for energy conservation and emission reduction
SPC continued to improve the responsibility system for energy conservation and emission reduction, controlled the coal consumption, promoted power generation with new energy and renewable energy to replace coal power, and helped to achieve carbon peaking.
Organize the "Energy Efficiency Improvement" competition
SPC formulated and implemented the "SPC Incentive Plan for Competition of 'Energy Efficiency Improvement' "to encourage all units to implement energy efficiency improvements and effectively control the total energy consumption and intensity.
Take multiple measures to reduce in-house power consumption
SPC optimized production and recycling technology to reduce energy consumption. The power consumption of sewage treatment decreased from 0.66 kWh per ton of sewage to 0.60 kWh per ton of sewage, which can save 1.92 million kWh of electricity every year.
Considering provision of more high-quality ecological products as our mission, SPC continuously optimized the industrial structure and development layout; implemented the quality and efficiency improvement and green low-carbon development strategies, promoted the upgrading and revamp of cleaner refinery products and the optimization and adjustment of industrial structure, and propelled the quality improvement and upgrade as well as transformation development with a focus on new materials.
Deepen the integration of refining and chemical industry, upgrading and revamp of cleaner oil products
Promote upgrading and revamp of steam cracker
Revamp of coal power unit to meet the energy consumption standardIncrease production of high-end chemical productsDevelopment and research of hydrogen fuel cell technologyEliminate outdated equipment and technology with high energy consumption
Carry out carbon trading. SPC carried out carbon footprint accounting and completed the carbon emission compliance for 2019. SPC bought 2% CCER of the approved carbon emissions and replaced the default value with the actual oxidation rate to calculate the carbon compliance amount for the first time, In 2020, SPC implemented various energy conservation and emission reduction measures, kept optimizing carbon emission accounting methods, and reduced the contract fulfillment costs for carbon emission by 5.28 million RMB.
Promote carbon recycling. SPC promoted the sending of biogas from the polyester wastewater treatment plant to PTA unit as fuel of the heating furnaces, and actively promoted carbon capture and storage (CCS), and uses the carbon dioxide during production to be used in the production of cola by local enterprises.
SPC strives to reduce the impact of production activities on the ecological environment, increase carbon sinks, and continues to strengthen green protection. Currently, the green coverage area is 302.79 square meters, the green area rate is 40.5%, and the green coverage rate is 42.2%.
Through energy transformation, energy management, industrial upgrading, carbon management, and increasing carbon sinks, SPC has reduced the industrial energy consumption, energy consumption per unit output value, and carbon dioxide emissions, and the emission intensity is at the advanced level in the industry, laying good foundation for SPC to realize carbon peaking as soon as possible.
STRENGTHEN SAFETY MANAGEMENT
In recent years, the total number of work safety incidents, serious incidents, and major incidents in China has achieved "three continuous declines". The work safety situation has further improved, but there are still many risks of potential hazards. Based upon the main characteristics and outstanding problems of work safety incidents in various industries, it is necessary to implement responsibilities level by level, focus on implementation of rectifications, strengthen risk prevention and control, eliminate potential safety hazards from root causes, and effectively contain the occurrence of major incidents.
SPC has always considered work safety as the first priority of the company's production and operation. In 2020, SPC earnestly implemented the corporate HSSE management system, and fully fulfilled the entity responsibility for work safety with the highest standards and most stringent requirements and in compliance with laws and regulations; strengthened implementation and comprehensively promoted the process safety management; focused on actual effect, continued to improve emergency rescue capabilities, and actively advocated the goal of "zero injury, zero pollution, and zero incidents" to build an excellent HSSE culture, striving to create first-class HSSE performance. In 2020, there have not been any major incidents of work safety, occupational poisoning or environmental pollution incidents, and the HSSE situation presented stable trends. In 2020, SPC strictly abided by the "Work Safety Law of the People's Republic of China" and actively promoted the implementation of the document requirements such as "Sinopec Three-year Action Plan for Special Improvement of Work Safety" and "Shanghai Three-Year Action Implementation Plan for Special Improvement of Work Safety" etc. to lay a solid foundation of work safety.
Completed undertakingof revisionand
"identical responsibility forPartyand governmentoffices, dualdutiesfor oneposition",all staffshavesigned HSEcommitment, withsignaturerate reaching100%.
9majoritemsand 19minoritemswere voteddowninthe activities,including indicatorsofpersonal injury,safetyincident, environmental incidentetc.
Strengthen implementation ofworksafety responsibilityAssessedandgave scoresto254individuals ofthecontractor; Returned6construction workersofthecontractors whoseriouslyviolated relevantregulations.
Implemented allstaff safetyscoring
Completedpreparationofthe implementationplan,issuedthe sametovariousunitsandset upaworkinggroup; Issueandsetupaworking group;Formed"TwoLists" ofmeasuresforfindings andupdatedthem continuously;
safetyLeaderstookpersonal chargeoftheshiftfor 450times, Leadersvisited thegrassroots organizationsfor2104 times.
Atotalof196findings werefound,withal havingbeenrectified
Carriedout activitiesofleaders visitinggrassroots organizations
Inspections totaled 87 times, and 227 findings were found. So far, 288 findings have been completed with rectifications, with a rectification rate of 99%
Implemented readiness systemforthe epidemic preventionand control
identificationand continuouslyimproved theplatform;
Completed rectification of 20 group company-level potential safety hazards, with a total investment of 101.87 million RMB; Awarded 9,599 diagnostic recommendations, totaling 1.913 million
Invited experts to conduct process safety assessments and held special training on process safety; Invited a third party to provide process safety instruction service for 11 production units
Fully initiated process safety management and carried out special training
on projects are dling of "Three neities"; completed y completion ptance; s completed chapters n of safety lities; rojects ted safety essment
vely ted the ng and entation "three eities " of ety
out direct operations and contractor safety m anage m ent
S u p ervisio n" for o n-site safety
Innovated " D u al M o d e S afety
C ontractors' pass rate ofsafety education and training w as 97.8 % ;
C ontractors totally signed 4 6 7 H S E m a n a g e m e nt agree m ents;
H S S E q u alific atio n revie w ;
169 contractors passed
Attached great importance to the work safety management of hazardous chemicals
o f h a z a rd o u s c h e mic als; S m o o t hly p r o m o t e d t h e renewal of work safety license; Strengthened special investigation and rectification of major h a z a rd s o u rc e s
o f m ajo r h a z a r d s o u r c e s
Obtained Level-2 enterprise certificate of work safety standardization and notification on registration
On-duty readinesstotaled 22,098person timesduring theepidemic preventionand control;
Stationedat57 placesandthesafety watchingguarantee ratereached100%
Fully carried out special fire inspection
Prepared the assembly oftypicalsafety incidents, and carriedoutsafety educationandtraining
594 emergency drills, with 9,221 person times of participants; 103 spot checks of emergency drills, generating 35
Prepared and issued the assembly of typical incidents, totaling 100 cases;
sessions of safety education and training
Carried out 71
Improve the intrinsic safety management and continuously consolidate the foundation for development
In 2020, SPC continued to carry out activities such as "Work Safety Month" and "Work Safety Circuits", organized special publicity and in-depth study of General Secretary Xi Jinping's important remarks on work safety, and created good atmosphere of "Everyone stresses safety, everything is for safety, safety in mind anytime and safety is top priority anywhere" within the company to improve the level of intrinsic safety management and continuously consolidate the foundation for development.
Carry out "Perfect Day" (a day with zero incident, zero injuries, zero damage to environment) activities to demonstrate good HSSE image
In 2020, SPC's 12 pilot units organized and carried out the "Perfect Day" activity, which focused on comprehensive intrinsic safety, aimed at preventing and resolving major risks, eliminating potential safety hazards in a timely manner, effectively containing work safety incidents, and establishing a mechanism that links the management and subordinates and is promoted hierarchically. As a result of six-month pilot operation, the "three basics" work had been continuously consolidated, the average concentration of VOCS at the boundary had steadily decreased, the equipment stability rate and production discipline had been greatly improved, the safety awareness of employees had been strengthened, the construction of safety culture had been strengthened, and a good HSSE image had been demonstrated.
Continue to improve contractor management to ensure the safety of direct on-site operations
In 2020, SPC strictly conducted HSSE qualification review for all contractors in accordance with the "SPC Rules on Supervision and Management of Contractor Safety"; actively carried out induction safety education and training for contractors, and strengthened contractor management information capacity building. Besides, in combination with the project landing of "SPC Job Safety Management and Control Platform", SPC strived to stabilize the operation of current contractors' information platform to ensure online management and control of the contractor's direct operations throughout the process, which practically strengthened the contractor's safety management capabilities and management level, and effectively ensured the safety of on-site operations.
Focus on actual effect and continuously improve emergency rescue capabilities
In 2020, in order to continuously improve the emergency rescue capabilities, SPC continued to deepen on-the-job training and focused on emergency plan drills. For example, the full-time fire brigade actively carried out subject training on rescue at height and formulated detailed implementation measures for training on rescue at height. As a result of nearly half a year of training on rescue at height, the original rescue time of more than 20 minutes was shortened to less than 10 minutes, so the emergency rescue capability had been significantly improved.
STRENGTHEN ENVIRONMENTAL PROTECTION
SPC actively responded to the national ecological environment protection policy and strictly abided by the Environmental Protection Law of the People's Republic of China as well aslaws, regulations and normative documents on the prevention and control of air, water, soil and solid waste pollution.
SPC actively fulfilled the main responsibility of corporate environmental protection, comprehensively promoted green development, resolutely coped with the prevention of pollution, won the battle to defend the blue sky, earnestly implemented the "Seventh Round of Three-year Action Plan for Environmental Protection", "Shanghai Clean Air Action Plan (2018-2022)" and "Jinshan District Action Plan for Comprehensive Improvement of Environment", promoted the green enterprises review and the creation of green grassroots, continued to improve the level of intrinsic environmental protection, and strived to create a "domestic leading, world-class" HSSE performance of a refinery and chemical enterprise.
Taking the lead
Optimize the environmental management system
Pass the green enterprise review
Carry out creation of "green bases"
SPC implemented the corporate HSSE management system, adhered to process safety management, and further clarified the environmental management responsibilities of each unit and department.
SPC carried out monthly self-assessment against the "Green Enterprise Evaluation Index (2020 Edition)-Refining and Chemical Division" to improve the point-losing items and exempt from on-site pre-audit.
SPC actively carried out the creation of green bases, formulated and issued the "SPC Green Bases Creation Plan", established a leading group and working group, and each department carried out learning, rectification and self-assessment every month.
SPC highlighted the root cause rectification, promoted the implementation of rectification work in an all-round way, ensured that the pollutant discharge met the requirements of pollutantdischarge permits, continued to promote pollutant emission reduction, achieved comprehensive collection and treatment of process waste gas and complete compliance discharge, and completed various environmental protection indicators issued by the group company.
Generation of hazardous wastes (unit: x10 KT)
Generation of non-hazardous wastes (unit: x10 KT)
Sulfur dioxide (ton)
SPC comprehensively investigated the
compliant discharge of air pollutants, strengthened the research and development and application of waste gas treatment technology, continued to improve the level of pollutants purification, and strived to achieve the compliant discharge of air pollutants.
Management of water pollutant discharge
Based upon the national and Shanghai discharge standards, SPC comprehensively investigated the compliance status of water pollutant discharge, developed a green sulfuric acid alkylation treatment technology with China's independent intellectual property rights to successfully substitute foreign alkaline washing and water washing technological processes, greatly reducing the discharge of alkaline water and the consumption of utilities. As a result, the environmental impact is significantly reduced.
Management of solid waste discharge
SPC prepared "SPC Implementation Scheme for Three-year Action Plan of Special Rectification of Work Safety", established four special rectification plans for hazardous chemicals and hazardous waste etc., promoted corporate standardized management of hazardous chemicals and solid waste, and carried out standardized service for daily cleaning of daily generated hazardous waste.
Initiated various green creation activities
SPC developed a series of action plans, printed and distributed "Notice on Maintenance of Energy and Environment by Taking Actions on '100-day Challenges for Creation of Benefit'", broke down emission reduction indicators and implemented various emission reduction measures. Carried out "Perfect Day" activity and disclosed the cumulative excellent days to the company.
Strictly conduct self-monitoring of the environment
In accordance with the pollutant discharge license, relevant national environmental monitoring regulations and Sinopec requirements, SPC issued the "2020 SPC Environmental Monitoring Plan and Emission Implementation Standards" and provided timely feedback on the risk of incompliant environmental monitoring factors and timely supervision of rectification.
Strictly conduct online monitoring management
SPC established an online monitoring data SMS alarm platform to ensure that relevant units can organize timely investigations and make arrangement for rectifications and achieve closed-loop online data management; and initiated grid-based online monitoring project to connect all equipment to SPC environmental protection information platform.
Strengthen identification and supervision of environmental risks
SPC assessed the environmental risk sources in accordance with the requirements of "Sinopec Guidelines for Risk Assessment of Environmental Incident", prepared "One Source, One Case" for all environmental risk sources, and implemented the responsible departments (persons); and carried out investigations of potential environmental hazard in a rolling manner, realized split flow of clean water and waste water at key production area, improved VOCs treatment facilities, reduced the solid waste etc.
In-depth promotion of "investigating unpleasant odor by all employees"
SPC focused on the deployment of the activity for "investigating unpleasant odor by all employees". In 2020, a total of 29,470 environmental protection issues were reported, and the problem rectification rate increased by 1.5% compared with the previous year. As a result, a closed loop process was formed, including "finding of environmental problem - report of the problem - rectification of the problem - reward of bonus points".
Continuously organize Public Open Day Program
SPC actively implemented environmental information disclosure, and continuously organized "Public Open Day", World Environment Day and other themed activities. In 2020, a total of 38 sessions of "Public Open Day" were held with 1204 participants, facilitating the public to better understand sewage treatment and the effect of pollution treatment and environmental monitoring.
DEVELOP RECYCLING ECONOMY
SPC strictly abided by the laws and regulations on the use of resources, established the concept of recycling economy, and adhered to the path of recycling economy through technical revamping and comprehensive utilization of resources. As a result, the water recycling, waste gas recovery management, and comprehensive recycling of waste were further improved.
SPC actively developed recycling economy. The total water consumption and intensity continued to decrease, and the industrial water utilization rate and sludge recovery constantly improved.
Fresh water consumption
Water consumption per unit of output value
Industrial water recycling rate
Comprehensive recovery and utilization of sludge
10 K tons ton / 10 K
10 K tons
Emission reduction and recovery of flare gas
SPC promoted the emission reduction and recovery of flare gas through multiple measures such as strengthening the operation management of production units, daily management of flare system source emissions, operation management of flare gas recovery system, purge operation management, flare emission management of maintenance units as well as "daily assessment and monthly assessment" of the flare system emissions and recovery status. In 2020, a total of 90,262,600 cubic meters of high-and-low-sulfur flare gas was recovered.
Waste gas recovery technology upgrade
SPC successfully tested the waste gas treatment technology unit of the northern acrylic fiber complex, which achieved the concentration of acrylonitrile in the exhaust gas ≤ 0.25 mg/m³, realized compliant discharge and regeneration cycle of the adsorbent, and can also reuse the generated wastewater to the production system to achieve clean production.
■ 2019 (x10,000 m³)
Refining flare cylinder emission
Low sulfur flare gas recovery
Continue to promote off-gas recycling
■ 2020 (x10,000 m³)
High sulfur flare gas recovery
SPC promoted the application and development of VOCs off-gas, developed a kilowatt-level solid oxide fuel cell power generation system based on reformed gas fuel, realized the efficient and clean utilization of VOCs, and promoted the upgrade of VOCs reforming and conversion technology generated in production process of the petrochemical industry.
SPC's industrial water is sourced from surface water and domestic water comes from municipal water supply. Therefore, there are no problems or risks in obtaining suitable water sources. SPC steadily improved the centralized management of industrial water system, cooling water system, and sewage system, promoted the implementation of various scientific and technological breakthrough plans, and realized the continuous improvement of water recycling and water recovery treatment. In 2020, SPC's total water intake was 49.81 million tons, and the water intake per 10,000 RMB output value was 5.49 tons per 10,000 RMB. The total water consumption, water consumption and water discharge for processing per ton of crude oil were far below the assessment indicators, and the industrial water recycling rate was up to 97.95%, higher than the assessment indicators and the average level in industry.
In 2020, SPC's industrial water intake was saved by 5.87 million tons on a year- on-year basis, and the industrial water recycling rate reached 97.95%. SPC was awarded the title of "Shanghai Jinshan District Water-saving Enterprise".
SPC made localized replacement of the membrane of the sewage treatment plant, explored the optimization method of MBR membrane cleaning, and solved the capacity bottleneck of the sewage treatment plant.
Total water intake
Water intake per 10 K RMB output value
Total water consumption
Water consumption for processing of per ton oil
Water discharge for processing of per ton oil
Recycling rate of industrial water
Special rectification action for safety of hazardous waste
Based on the "Shanghai Three-Year Action Implementation Plan for Special Improvement of Work Safety" and the "Shanghai Three-Year Action Implementation Plan For Special Rectification Of Safety Of Hazardous Waste", SPC formulated a special rectification implementation plan for hazardous waste safety, improved the supervision system for hazardous waste throughout the process, revised and improved "SPC's Regulations on Prevention and Control of Solid Waste Pollution" to regulate the work requirements of hazardous waste generation, collection, storage, transfer, transportation, utilization and disposal.
Promote the reduction and resource utilization of hazardous waste
To further reduce the amount of generated hazardous waste and increase the utilization rate of hazardous waste resources, SPC promoted open bidding for the outsourcing of hazardous waste disposal, applied for exemption from thermal and hazardous waste disposal in accordance with the "National List of Hazardous Waste" and other incentive provisions to promote internal utilization of hazardous waste and reduce the risk of outsourcing disposal, and carried out the standardized daily removal of daily generated hazardous waste, etc., to achieve a multiple win-win for economic, environmental and safety benefits.
Continue to promote "green packaging"
SPC strengthened cooperation with suppliers and technical licensors to reduce and recycle various packaging, consolidated and improved nearly a hundred types of "green packaging" in recent years, continued to use environmentally friendly packaging, and tapped the potential to continue to promote the use of "green packaging" for remaining varieties. In 2020, SPC additionally completed the replacement of "green packaging" for extraction scorch retarder and thiourea dioxide, and further reduced the packaging barrels by 6,837.
PEOPLE FOREMOST, BENEFIT STAFF
Regarding employees as the corporate most valuable asset, SPC is committed to building harmonious labor relations. SPC respects and safeguards the rights and interests of employees, cares for their physical and mental health, emphasises talent cultivation, and builds diverse and fair promotion channels.
01 Harmonious labor relations
02 Employees' health and safety
03 Boost employees' career development
HARMONIOUS LABOR RELATIONS
SPC abided by the Labor Law and Trade Union Law of the People's Republic of China, signed labor contracts with employees according to law, and didn't terminate labor relations with employees under specific conditions stipulated by law; SPC respects and safeguards the employees' rights and interests and equal opportunities, and prohibits the use of child labor and the forced labor and protects the employees' privacy; SPC establishes and perfects diversified daily consultation and communication mechanisms between management and employees for promoting harmonious labor relations. By the end of 2020, there were 9106 staffs and employees at SPC. The employee turnover rate in 2020 was 0.23%, and that of local employees was 0.10%.
Employees with undergraduate
Employees with college diplomas
Employees with registered
Employees with registered permanent
Proportion of female management staffs
Proportion of male management staffs
diplomas and aboveand below
permanent residence residence of provincesof Shanghai
or cities other than Shanghai
Diversified channels to listen to and respond to employee demands
Feedback on the proposals of the Employee Representatives Congress under supervision of the Party Committee Office, General Manager's Office
WeChat official account of "e-Home for SPC's Staff"
"Go to the junior staff and visit staff's families"
to listen to their demands
Employee Representatives Congress
"Do it right now" mechanism to improve service efficiency
Information platform for disclosure of corporate affairs and policies
EMPLOYEES' HEALTH AND SAFETY
SPC abided by the Work Safety Law and the Law on Prevention and Control of Occupational Disease of the People's Republic of China, promulgated the SPC Great Health Implementation Plan, established the working mechanism of great health management, and was committed to safeguarding employees' health.
Great Health Management Leading Group
97 EAP volunteers
By the end of 2020, SPC had developed 97 EAP volunteers
In 2020, offline training + online micro-classes, SPC held 3 EAP training courses for employees.
54 person times
In 2020, agency consultation + telephone consultation + video consultation + on-site consultation, SPC provided 54 person times of psychological consultation for employees.
BOOST EMPLOYEES' CAREER DEVELOPMENT
Abiding by the "Vocational Education Law of the People's Republic of China", etc., SPC implemented Talents-based Corporate Development Project and the Employee Quality Project, and improved the quality training system for all employees and fair, just and diversified promotion channels. In 2020, the average duration of training received by the corporate senior management, middle-level management, and ordinary employees was 81 hours, 40 hours, and 36 hours, respectively.
Three position sequences provide diversified promotion channels
HR management provides the chances of both employment and termination of employment
Just examination and assessment, open selection and engagement, competitive post engagement, chances of promotion and demotion
Diversified talent training plan for different groups of people
Frontline operation talents
High-quality professional cultivation plan for leaders
Cultivation of chief experts and senior experts
Build SPC's core talents pool
Employee Innovation Studio Master Technician Studio Technician Studio Training on "One Post with Multiple Skills"
Employee promotion reward Reward for mentor's coaching
"Three Hundred and Three Thousand" practical training program for young cadres;
Reserve of youth talents
Training course for young leaders Young workers positive energy training camp
Cultivate model female employees
Undertake "Shanghai Women's Innovation School"
FULFILL RESPONSIBILITIES AND SERVE THE SOCIETY
Facing the sudden outbreak of the COVID-19, SPC guaranteed the supply of medical materials, promoted the stability of the industrial chain, and highlighted the mission and responsibility of central enterprises. SPC was committed to consolidating and developing a mutually beneficial and win-win relationship with the surrounding areas, always shared ups and downs with the surrounding communities, and overcame difficulties together.
01 Win the Battle of Epidemic Prevention and Control
02 Facilitate Community Development
03 Demonstrate Corporate Image
04 Fulfill Responsibility of Anti-corruption
05 Contribute to Social and Public Welfare Undertakings
WIN THE BATTLE OF EPIDEMIC PREVENTION AND CONTROL
In 2020, the outbreak of COVID-19 swept across China. The stable supply of medical supplies and raw materials was a key link in the fight against epidemics. As one of the largest suppliers of medical and health materials in China, SPC timely guaranteed the supply of special materials for melt-blown fabrics, polypropylene medical materials etc., facilitated the epidemic prevention and control, and demonstrated the mission and responsibility of a central enterprise.
Guaranteed the supply of medical materials，facilitated the epidemic prevention and control
Urgent research and development of special materials for melt-blown fabrics
In the face of peak demand and a surge in prices for the melt-blown fabrics, the core material of masks in the early stage of the epidemic, SPC urgently developed special materials for melt-blown fabrics within 12 days and continued to expand its production capacity. In the whole year of 2020, a total of 22,400 tons of special materials for melt-blown fabrics were supplied to the market, expected to produce 22 billion masks.
Stable supply of polypropylene medical materials
Most of the medical materials required for epidemic prevention and control are polypropylene products. SPC produced 6,600 tons of polypropylene medical materials during the Spring Festival in 2020, and supplied a total of 60,048 tons of polypropylene medical materials throughout the year of 2020.
Donation of medical oxygen
After the outbreak, hospitals in Hubei Province lacked large amounts of medical oxygen in cylinders or Dewar flasks. Therefore, SPC purchased oxygen cylinders or Dewar flasks, and entrusted SPC's subordinate medical oxygen producers to produce medical oxygen to promptly assist Wuhan.
Facing the dual challenges of epidemic prevention & control and production & operation, SPC not only fulfilled the responsibility of a central enterprise in terms of basic supply guarantee, but also took the initiative to speed up our own resumption of work in response to market demand, and actively promoted the complete work resumption of upstream and downstream industries and small and medium-sized enterprises, having ensured the stability of the industrial chain and supply chain.
Stabilize the supply of
Increase gasoline production
Due to the impact of the epidemic, SPC processed only 28,000 tons of crude oil per day in February 2020. In April, the daily processing capacity of crude oil reached 40,000 tons, achieving full production.
Speed up work resumption
During the peak season of gasoline consumption in Shanghai and the accelerated resumption of work, SPC actively optimized production and sales, increased the production of 98# gasoline, and ensured supply at high quality and appropriate quantity through pipeline transfer for the first time. The corporate monthly gasoline output hit a record high in history.
polyester fiber to Wuhan
When Hubei gradually resumed work and production in late March, SPC kept a close eye on the pace of the work resumption of downstream enterprises and linked up logistics and transportation in Hubei direction. After the epidemic, SPC supplied 2500 tons of polyester products to Wuhan market for the first time, which significantly guaranteed the work resumption of downstream enterprises in Wuhan.
Help Hubei-based enterprises resume production
SPC took the initiative to purchase seamless steel pipe products of Hubei small and medium-sized enterprises in accordance with the needs of our own revamping project, and cooperated with cooperative enterprises to jointly support the purchase of 2,300 tons to help small and medium-sized enterprises in Hubei to resume work and production.
As a large central enterprise, SPC bears the entity responsibility for epidemic prevention and control. SPC resolutely obeyed the unified requirements for prevention and control of epidemic of the local government, carefully deployed epidemic prevention and control plans, strengthened prevention and control measures, and achieved the goal of "zero imported cases, zero spread, zero dead zone, zero dead angle, and zero infection", and made due contributions to the safety and stability of the local regions.
"SPC's Emergency Process for Response toEstablished the leading group for epidemic prevention and control
Suspected Cases of COVID-19"
Initiated first-level response to major public health emergencies
"SPC's Implementation Plan for Personnel Management and Control during the Epidemic" "SPC's Comparison Table for Early Warning Levels of Public Health Emergencies"
A total of 1,079,860 pieces/sets of epidemic prevention materials were implemented
Strictly controlled and distributed the epidemic prevention materials throughout the processAdjustments to timetable and dining modes to reduce unnecessary personnel contact and set up centralized isolation and observation rooms Regular disinfection and protection of personnel intensive sites and key facilities
SPC immediately organized Party members and volunteers to participate in the prevention and control of the epidemic in the community in various forms, rushing to the front line of epidemic prevention and control, jointly shouldering and overcoming the difficulties with the community.
At the request of the Party Working Committee of Jinshan Shihua Sub-district, volunteers went to 26 neighborhood committees of Shihua Sub-district to assist in epidemic prevention and control.
FACILITATE COMMUNITY DEVELOPMENT
SPC abided by the Law of Corporation Income Tax and Provisional Regulations on Value-added Tax of the People's Republic of China, paid taxes with honesty, established all-round cooperation mechanisms with surrounding communities and contribute to national development strategy.
According to the Environmental Protection Law of the People's Republic of China and Regulations on Disclosure of Environmental Information of Enterprises and Institutions, SPC disclosed the enterprise environmental information to residents, focused on response to public sentiment, and facilitated understanding by way of communication.
Diversified corporate-local cooperation and communication channels, listening to opinions, responding to appeals, eliminating misunderstandings, and enhancing collaboration
Shanghai Municipal Commission of Economy and Information Technology, State-owned Assets Supervision and Administration Commission and other authorities
SPC paid taxes according to the law and the amount of taxes paid has ranked top among Shanghai manufacturing enterprises for many years.
Obtain greater development opportunities while serving the national development strategy
■ Total tax paid (unit: 100 million RMB)
DEMONSTRATE CORPORATE FULFILL RESPONSIBILITY OFIMAGE
SPC abided by the "Environmental Protection Law" of the People's Republic of China, disclosed environmental information, attached importance to analysis and response to public sentiment, and demonstrated a positive corporate image to the society.
Demonstrate corporate image through multiple channels
Build a media
Display the efforts
platform and create
of green enterprise
a "central kitchen"
media and show a
for news and
TikTok account and
Public Open Day
"Cloud Open Day" during the epidemic
Under the impact of the epidemic, SPC innovated the form of "Public Open Day" and told good stories about pollution control and environmental monitoring through "Cloud Open". The live video had 68,000 person times watching, which played a very good publicity effect.
On September 3, 2020, a flare emission incident took place due to equipment shutdown, and false information about SPC was disseminated in public. SPC's public opinion response mechanism worked in a timely manner to eliminate negative public opinion.
Fulfilling the obligations of the members of Global Compact of the United Nations and abiding by applicable provisions of the Corporation Law of the People's Republic of China as well as Regulations of the Communist Party of China on Disciplinary Punishment, SPC completely fulfills the responsibility of anti-corruption.
In 2020, SPC was not aware of any serious violations of laws and regulations on bribery, extortion, fraud or money laundering inside the Company.
SPC improved the risk management system and internal control system, and strengthened the identification and management of integrity risk positions and integrity risk points
SPC strengthened partner access management, daily supervision and warning education, and prevented bribery
Adopting a three-pronged approach, SPC carried out education on clean practice for employees, "family helps the development of clean practice" and "partner helps the development of clean practice", so that the concept of clean practice and compliant operation can be deeply rooted in the hearts of the people.
MAKE CONTRIBUTION TO SOCIAL AND
PUBLIC WELFARE UNDERTAKINGS
SPC's public welfare programs were demand-oriented and actual effect-oriented, focusing on pursuing people's livelihood; SPC improved and upgraded the " Babysbreath " volunteers' service brand; and facilitated the nation to shake off poverty.
The public welfare programs were demand-oriented and result-oriented, and the enterprise and local government jointly discussed the list of requirements for public welfare programs; In 2020, SPC and employees donated money, materials and blood, and participated in volunteers' service activities.
6.607 million RMB
SPC invested 6.607 million RMB to support the development of surrounding areas in 2020
In 2020, SPC and local government jointly developed 35 public welfare projects
Carrying out volunteers'
service activities in 52 communities
1967 employees participated in poverty alleviation donations
The project of "Shared Efforts and Interests Promote Community Self-governing" of SPC's "Babysbreath" volunteer service team was selected as Sinopec Excellent Volunteers' Service Project in 2018-2019.
SPC's employees Tao Yi and Wu Weidong were selected as Shanghai Excellent Volunteers in 2018-2019.
Contribute to China's poverty alleviation
The corporate contribution + employees' donations totaling about 3.3 million RMB were donated to poverty-stricken counties in Yunnan and other regions.
2021 marks the 100th anniversary of the founding of the Communist Party, the first year of the 14th Five-Year Plan, and also SPC's planning year during the 14th Five-Year Plan. Today, the world is undergoing unprecedented changes in a hundred years, and China's development is still in an important period of strategic opportunities. However, the uncertainty of international environmental instability has obviously increased, the impact of COVID-19 is extensive and far-reaching, and the petrochemical industry has ushered in a highly competitive "Warring States Period". The circulation of industrial chain and supply chain has been blocked. We must be prepared to cope with a series of new risks and challenges. At this critical time of history, we should spare no effort to build a green chemical base enterprise with global scale and first-class competitiveness, with deepening reform and opening-up as the momentum, innovation-driven development as the source, so as to seize the development opportunities to devote ourselves to contributing "petrochemical power" to national progress, national rejuvenation and local development.
Build a green chemical base enterprise with global scale and first-class competitiveness
We will profoundly seize the new pattern and new opportunities in the new development stage, adhere to green development, innovative development and integrated development, give overall consideration to overall optimization and Coordinated development in Caojing Chemical Industry Park and Sinopec Shanghai Petrochemical Co., Ltd., continuously promote implementation of the development idea of "one flagship, one core and one base", focus on optimization of raw materials for steam cracker, strengthen carbon fiber core industry, and develop fine chemical business related to elastomer, polyolefin, polyester and new materials. We should not only be good at gaining momentum, but also be adept in identifying and responding to changes, nurture opportunities in the crisis, develop new situations in the turbulent situations, and stride towards the goal of a green chemical base enterprise with global scale and first-class competitiveness.
Build a clean, efficient, low-carbon, and recycling green enterprise
We will build a "clean, efficient, low-carbon, and recycling" green enterprise with the concept of "dedicating clean energy and practicing green development", and strive to become a practitioner of ecological civilization and a builder of beautiful China. We will further improve the HSSE system construction, focus on safety management, promote the construction of the "safe island" platform, and boost special rectification of work safety; we will continue to promote the green enterprise action plan, accelerate the overall industrial upgrading, boost environmental rectification, and keep strengthening green culture development; We will deepen energy conservation and emission reduction with greater determination and efforts, strengthen stable compliance of environmental emissions, focus on green protection for green enterprises, and make positive contributions to the full realization of the national carbon neutrality goal by 2060.
Build a "Community with a Shared Future" that is people-oriented, co-constructed and shared by enterprises and localities
We will continue to improve the modern enterprise system and social responsibility performance evaluation system, enhance the social governance and green supply chain management, and create value with customers; We uphold the people-centered development concept, earnestly safeguard the interests of employees, and make the reform and development achievements benefit more employees in a fair manner; We will implement the benefit of the people into deployment of various decision-makings and practical work, fulfill corporate citizenship duties, care about community development, continue to enhance the awareness and recognition of the surrounding residents on the energy and chemical industry, support and drive local economic and social development, and build a "community with a shared future" that is co-constructed and shared by enterprises and localities.
WRITTEN COMMENTS ON ASSESSMENT OFCORPORATE SOCIAL RESPONSIBILITY REPORT
Title of report
2020 Annual Corporate Social Responsibility Report
Sinopec Shanghai Petrochemical Company Limited
Located in Jinshan District, Shanghai, as the holding subsidiary of China Petroleum & Chemical Corporation,
Sinopec Shanghai Petrochemical Company Limited (hereinafter referred to as "the Company") is one of the major in-tegrated enterprises of reﬁning and chemical industry in China and also an important production base of oil products, intermediate petrochemical products, synthetic resin and synthetic ﬁber in China. As one of the largest integrated reﬁn-ing and chemical enterprises in China, the Company set the development goal of building "a domestically leading and world-class energy, chemical and new material company", adhered to the mission of "providing energy for better living ", actively created a green chemical enterprise, accelerated the layout of advanced energy and cutting-edge materials, and fostered new kinetic energy for sustainable development. Facing the epidemic, the Company struggled to move forward, achieved operation revenue of 74.705 billion RMB and totally paid tax revenue of 15.119 billion RMB in 2020. Inheriting the petroleum spirit of honesty and strictness, the Company was granted with the National Civilized Enter-prise for consecutive six sessions. In 2020, SPC succeeded in developing special materials of melt-blown fabric for masks emergently in 12 days, and successfully completed the production task of 6,600 tons of polypropylene medical materials; The successful commissioning and startup of SPC's 400 KTPA oil product cleaning plant brought new proﬁt growth points; The ofﬁcial establishment of Advanced Materials Innovation Research Institute marked a new journey of technological innovation; The state-of-the-art high-toughness polyester engineering plastic that was developed through cooperation won the prize at the 22nd China International Industry Fair; The Company took the lead in utilizing the AGV technique intelligent material warehouse, and moved towards the goal of developing a green intelligent material supply chain. The Company deﬁned the direction of strategic transformation for polyester, acrylic ﬁber, polyoleﬁn, ﬁne chem-ical and other major business areas to provide customers with differentiated value and solutions. By the end of 2020, SPC has a total of 8,466 staffs.
Company Address: 48 Jinyi Road, Jinshan District, Shanghai 200540, P.R. China Tel. 86-21-57941941 Fax: 86-21-57940050
Email box: email@example.com
Shanghai municipal group standard Guidelines for Corporate Social Responsibility （T31/01001-G001-2014)Assessment was conducted in writing for 2020 Annual Corporate Social Responsibility Report (called "the Report"
for short) of Sinopec Shanghai Petrochemical Co., Ltd. in accordance with the requirements of Guidelines for Corporate
Assessment method Social Responsibility (T31/01001-G001-2014).
The assessment process includes conﬁrmation of the source and reliability of information disclosed by the Report with help of the enterprise ofﬁcial website and the third party's data concerned.
With standardized structure and complete contents, the Company's report covered the basic contents of the Com-pany's performance of its economic, social and environment responsibilities, and was prepared by making reference to the Guidelines for Environment, Society and Management Report issued by the Stock Exchange of Hong Kong Limited, the Guidelines for Corporate Social Responsibility (SEO-CSR1.0) issued by Shanghai Federation of Economic Organization, ISO26000: Guidelines for Social Responsibility (2010) issued by International Standardization Organiza-tion, and Guidelines for Release of Report on Sustainable Development of Petroleum and Natural Gas Industry issued by the International Association of Environmental Protection in Petroleum Industry. The report contained and covered the main items of key performance indicators required by T31/01001-G001-2014.
Characteristics of the Report: With reference to domestic & international and industry requirements, the Company prepared the social responsibility report with industry characteristics, which covered the efforts and achievements of the Company made in various ﬁelds such as economy, environment and society in 2020 for sustainable development.
Centering on the eight core topics proposed by the Guidelines, the Report disclosed the Company's practice and performance in fulﬁllment of social responsibility in 2020.
In terms of scientiﬁc development: In 2020, following the requirements of "combating epidemic, stabilizing growth, and pursuing development", the Company made great efforts to practice "three focuses and three imple-mentations". Focused on "combating epidemic" and implemented the requirements of "strict prevention and control of epidemic, resumption of work"; focused on "stabilizing growth" and implemented the responsibility of "shouldering heavy loads and making more contributions"; focused on "pursuing development" and implemented the concept of "green development, innovative development". The Company deﬁned the core values of the Company "people, responsibility, integrity, precision, innovation, and shared values" and vision planning of "establishing a world-class energy and chemical company"; The Company targets at creating a future of sustainable development, being a re-sponsible enterprise with good faith and abiding by social morality with the undertaking spirit of "I must try my best to score achievements, but the achievements are not necessarily attributable to me", and the corporate mission of "providing energy for better living". Guided by President Xi Jinping's socialist ideology with Chinese characteristics for the new era, fully implementing the spirit of the 19th CPC National Congress and targeting at building a "domes-tically leading and world-class" company, the Company is committed to becoming an excellent energy, chemical and new material enterprise featured with "prominent major business, superior assets, reasonable structure, healthy ﬁnance, advanced technology, green low carbon, distinctive culture and standardized governance". The Company achieved operation revenue of 74.705 billion RMB, totally paid tax revenue of 15.119 billion RMB throughout the year, and implemented total proﬁt of 574 million RMB. Strictly abiding by the Corporation Law and the Securities Law, the Company established the social responsibility management system from six aspects such as the responsibility strategy, responsibility governance, responsibility capability, responsibility incorporation, responsibility performance and responsibility communication. The Company actively promoted the construction of smart plant in all aspects such as production management, safety and environmental protection, equipment management, energy manage-ment, supply chain management, auxiliary decision-making, and material management. In 2020, the Company was granted with the title of National Civilized Enterprise for consecutive six sessions, won the honorary titles such as "CIIF New Material Award" of the 22nd International Industry Fair, Class A evaluation of Shanghai Stock Exchange information disclosure, "Gold Award of Panoramic Investor Relations (2019)-Outstanding IR (Investor Relations) En-terprise". The Company's "Smart Plant Promotion Project" passed Sinopec's acceptance; "Smart Plant Construction Practice with the Integration of Informatization and Industrialization as the Core" was awarded the ﬁrst prize of inno-vation achievements in modernization of enterprise management by Shanghai.
In terms of fair operations: As the ﬁrst listed company listed in Shanghai, Hong Kong and New York, the Com-pany strictly abided by the securities regulatory laws and regulations of the listed places, started with operating beneﬁt, and strived to reduce costs and increase beneﬁt and improve operating performance. Besides, the Compa-ny strictly implemented various information disclosure systems, innovated investor relations management, attached importance to investors' comments and feedback, and earnestly safeguarded the interests of investors. The cover-age rate of anti-commercial bribery training reached 100%, and there was no violation of competition laws or intel-lectual property rights. The Company has formed a relatively complete anti-corruption system, attaching importance to employees' anti-corruption education + serious investigation and handling of cases in accordance with laws and regulations + strengthening daily supervision, and the coverage of anti-corruption education reached 100%.
In terms of environmental saving: The Company considered safe development and low-carbon development as the premise and foundation for the survival and sustainable development of the enterprise. With "clean, efﬁcient, low-carbon and recycling" as its substantive characteristics, the Company actively responded to climate change, strengthened safety management, enhanced environmental protection, developed recycling economy, and con-tinuously improved the level of intrinsic safety and environmental protection. The Company took the initiative to identify the opportunities and challenges in coping with climate change. Guided by the new development concept, the Company promoted energy conservation and emission reduction in boosting high-quality development, pro-moted low-carbon industrial transformation, and contributed to the global response to climate change and "China's commitment". The Company actively carried out activities such as clean production, pollution control, creation of green enterprises, and environmental cooperation to move forward the target of creating green enterprises, and was awarded "Sinopec Green Enterprise". The Company's total investment in environmental protection was 569.25 million RMB, and the frequency of major leakage of chemicals was zero; The discharge of various pollutants met the emission standard. Strengthened pollution treatment: the Company modiﬁed the sewage treatment plant in waste water treatment and is the ﬁrst company in Sinopec system that adopts biological ﬂuidized bed technology to treat PTA degradation-resistant wastewater. Regarding waste gas treatment, the Company adopted technical revamping and upgrading before the event, centralized collection and treatment during the event, and control of emission after the event. As a result, the exhaust gas emission reached 100% on-spec. discharge. In terms of improvement of resource utilization rate: fresh water consumption reached 49.81 million tons. The Company reduced ethylene tar consumption through change of oil to gas, reduced carbon emission through replacement with natural gas, etc., and reduced energy consumption through management of energy saving, optimization of energy performance pa-rameters, and energy-saving technological revamping projects.
In terms of work safety: The Company has always considered work safety as the top priority of the production and operation of the enterprise. In 2020, SPC conscientiously implemented the HSSE management system of the Company, and fully implemented the entity responsibility of work safety with the highest standards and the strictest requirements in compliance with laws and regulations; The Company strengthened implementation and comprehensively promoted process safety management; Focused on the actual effect, continuously improved emergency rescue capability, actively advocated the target of "zero injury, zero pollution and zero incident", built SPC's excellent HSSE culture, and strived to create ﬁrst-class HSSE performance. In 2020, there were no major or extremely serious incidents of work safety, occupa-tional poisoning and environmental pollution in the Company, and the HSSE generally presented stable trend. In 2020, the Company strictly abided by the Work Safety Law of the People's Republic of China, actively promoted the implemen-tation of "Sinopec Three-Year Action Plan for Special Rectiﬁcation of Work Safety", "Shanghai Three-Year Action Plan for Implementation of Special Rectiﬁcation of Work Safety" and other document requirements, consolidated the foundation of work safety, and fully implemented the entity responsibility of safety management. As a result, the incidence rate of occupational diseases was 0, the number of occupational safety and health trainees reached 29,904 person times, and the incidence rate of various safety indicators was 0; The investment in wo0rk safety was 284.7283 million RMB.
In terms of customer and consumer's rights and interests: The Company strictly abides by the requirements of the state Product Quality Law of the People's Republic of China, Standardization Law of the People's Republic of China and other laws and regulations, and strives to jointly develop with the customers through mutual beneﬁt and win-win coop-eration by considering quality as the core, and customer satisfaction as the tenet. In 2020, the Company continuously promoted improvement of the quality management system and optimization and adjustment of the management pro-cess, strengthened the identiﬁcation of quality risks, and continuously improved the efﬁciency and accuracy of quality management. The on-spec. rate of all the Company's products reached 100% throughout the year; The Company had no quality incidents and didn't receive any complaints about product quality throughout the year. There was no recall of sold products due to quality problems. The Company abided by laws and regulations as well as social morality, attached importance to business operations with good faith, continuously improved rules and regulations, strengthened operation control, consolidated the foundation of credibility, and won customer trust and social honor with practical actions. The Company continuously improved the quality management mechanism, streamlined and optimized grass-roots quality management institutions, and revised the detailed rules for performance appraisal; Strengthened quality supervision, identiﬁed product quality risks, formulated control requirements and carried out internal quality control; Improved the quality management ability, continuously improved the integrated management system, and promoted the online analy-sis and management of quality; The compliance rate of product sampling inspection was 100%, and the customer satis-faction was 98.26, which was 0.6% higher than that of previous year.
In terms of win-win cooperation: The Company has always adhered to the concept of business operations in com-pliance with laws and regulations and good faith, strictly abided by business ethics, kept in mind of the customer ﬁrst, enhanced competitiveness through open cooperation and mutual beneﬁt, and improved development ability and jointly created value together with customers and partners through mutual understanding and trust. The Company actively implemented the strategy of "going out" and "bringing in", made full use of domestic and international markets and two resources, strengthened strategic cooperation with governments, enterprises, universities, etc. to complement each other's advantages, boosted the industry transformation and upgrading, and made contribution to local economic de-velopment. While realizing its own development, the Company constantly established and improved suppliers' manage-ment system, and helped suppliers to achieve mutual beneﬁt and win-win results for a better future. The Company built a sound responsibility supply chain, optimized suppliers' supervision and evaluation, and strictly implemented access administration; Implemented material management and control throughout the process, strengthened risk management, and optimized risk control and prevention measures from three aspects such as safety, operation, and integrity.
In terms of harmonious labor relationship: The Company considered employees as the most valuable wealth of the company and was committed to building harmonious labor relationship. The Company respected and safeguarded the rights and interests of employees, cared for their physical and mental health, attached importance to talent training and constructed a diversiﬁed and fair promotion channel. The Company abided by the Labor Law and Trade Union Law of the People's Republic of China, signed labor contracts with employees according to law, and did not terminate labor relationship with employees under speciﬁc conditions stipulated by law; respected and safeguarded the rights and in-terests of employees and opportunities of equality, prohibited the use of child labor and forced labor, and protected the privacy of employees; The Company has established and improved diversiﬁed daily consultation and communication mechanisms between management and employees to build harmonious labor relationship. By the end of 2020, the total number of employees in the Company was 8,466, with a turnover rate of 0.23%, of which the turnover rate of local em-ployees was 0.10%. Abiding by the Vocational Education Law of the People's Republic of China and etc., the Company implemented talents-based corporate development project and the employee quality building project, improved the quality training system for all employees, and developed a fair and just diversiﬁed promotion channel. In 2020, the aver-age duration of training for senior management, medium management and ordinary employees of the Company reached 81 hours, 40 hours and 36 hours, etc. The labor contract signature rate was 100%, the collective contract coverage rate was 100%, the social insurance coverage rate was 100%, and the compliance rate of occupational hazard factors was 100%; On the basis of operating management series, professional technical series and skills operation series, the Com-pany established a talent promotion channel and a ﬂexible talent horizontal ﬂuidity channel to create a favorable pattern of everyone striving for success.
In terms of community participation and development: In 2020, facing the sudden outbreak of the COVID-19, SPC guaranteed the supply of medical supplies, promoted the stability of the industrial chain, and highlighted the mission and responsibility of central enterprises. SPC was committed to consolidating and developing a mutually beneﬁcial and win-win relationship with the surrounding areas, always shared ups and downs with the surrounding communities, and overcame difﬁculties together. The outbreak of COVID-19 swept across China. The stable supply of medical supplies and raw materials was a key link in the combat against epidemics. As one of the largest suppli-ers of medical and health materials in China, SPC timely guaranteed the supply of special materials for melt-blown fabrics, polypropylene medical materials etc., and facilitated the epidemic prevention and control. As a large central enterprise, the Company bore the entity responsibility for epidemic prevention and control. SPC resolutely obeyed the uniﬁed requirements for prevention and control of epidemic of the local government, carefully deployed epidemic prevention and control plans, strengthened prevention and control measures, and achieved the goal of "zero import-
Substantial contents ed cases, zero spread, zero dead zone, zero dead angle, and zero infection", and made due contributions to the safety and stability of the local regions. The Company's public welfare programs were demand-oriented and actual effect-oriented, focusing on pursuing people's livelihood; SPC improved and upgraded the " Babysbreath" volunteers' service brand; and facilitated the national project of shaking off poverty.
Recommendations of improvement: Facing the new development pattern of the domestic market as the mainstay and the domestic and foreign markets boosting each other, further enhance risk awareness, such as the high depen-dence of high-end products on foreign markets, the continuous improvement of market requirements for product qual-ity, variety and function, carry out risk management in various aspects such as the strategy, ﬁnance, market, opera-tion, laws, safety, environment, quality and etc., and continuously improve the strategic management and operational management capabilities to cope with the dynamic internal and external environment. Develop opportunities in the crisis, open new situations in the changing situation, and achieve high-quality development in the ﬁeld of economy, society, culture, ecology and etc.
The Report disclosed the performance indicators of Sinopec Shanghai Petrochemical Company Limited in terms of fulﬁllment of corporate social responsibility, and presents better vertical comparability. However, restricted by in-dustrial data/information, the Report doesn't have horizontal comparability.
Credibility of content
By way of the enterprise official website as well as consultation of relevant third party's assessment information and other means, we verified SPC's concept, culture and strategy of social responsibility and corporate governance disclosed by the Report as well as typical examples of practice and data, confirmed that the Report contents are credible.
The Report has a clear structure and plain text. In forms of characters, data, graphs, pictures and etc., the Re-port displays the Company's management, practice and performance of social responsibility; it is reader friendly and has strong readability.
The Report focuses on information disclosure of the Company's fulfillment of social responsibility in 2020, the examples of practice and performance data are mostly sourced from 2020, thusly presenting certain timeliness.
The Report disclosed the main social responsibility issues and stakeholders of Sinopec Shanghai Petrochemical Co., Ltd., and comprehensively described the joint participation of stakeholders in social responsibility and how to af-fect the stakeholders to devote themselves to the fulﬁllment of social responsibility.
The critical information, data and examples of fulfillment of social responsibility disclosed by the Report are basically in conformity with Guidelines for Corporate Social Responsibility (T31/01001-G001-2014).
The assessment comments are only speciﬁc to the 2020 information and data provided by the Report and the Company.
Titles Message from Chairman of the Board SPC's Responsibility performance Sheet Brief Introduction to
SPC Corporate CultureDevelopment Strategy
Stakeholders' Participation Sustainable Development Management
Revitalize petrochemical industry with innovative and pragmatic mindsetCreate value in good faithDevelop business through win-win cooperation
Focus on high-end supply Make innovations in petrochemical technology Jointly develop SPC quality
Build smart plant
P4.1 P4.2 P4.3 P4.4
People foremost, benefit the staff
Harmonious labor relations
6.3 6.4 6.8
B4 SOC-4 S2.10-S2.14
Employees' health and safety
Boost employees' career development
6.3 6.4 6.8
Win the Battle of Epidemic Prevention andP40-41
Fulfill responsibilities and serve the society
6.3 6.4 6.8 6.5
ImageE1.9 S4.1 S4.2
Fulfill Responsibility of
Make Contribution to S4.10
Social and Public Welfare
Outlook of 2021 Written Comments on Assessment of Corporate Social Responsibility Report
About this report Form of Readers'
ABOUT THIS REPORT
All data of the report are sourced from SPC official documents and statistical reports and have been reviewed by competent authorities.
Improvement of the report
Thirteenth report of social responsibility
Present report is the thirteenth report on enterprise social responsibility released by SPC, which includes the efforts and achievements made and scored by SPC in terms of economy, environment and society for sustainable development in 2020.
Reference standards of the report
References are made to the Guidelines for Environment, Society and Management Report (2019) issued by the Stock Exchange of Hong Kong Limited, the Guidelines on Enterprise Social Responsibility (SEO-CSR1.0) issued by Shanghai Federation of Economic Organization, ISO26000: Guidelines on Social Responsibility (2010) issued by International Standardization Organization, and Guidelines for Release of Report on Sustainable Development of Petroleum and Natural Gas Industry issued by the International Association of Environmental Protection in Petroleum Industry.
Abbreviations of the report
SPC and the Company as mentioned in the report refer to Sinopec Shanghai Petrochemical Co., Ltd.
Time frame of the report
This report was developed on the basis of the data ranging from January 2020 to December 2020. However, we also adopted the data of the past three years since 2018 for certain quantity of achievements, so as to reflect the variation tendency in time.
Reliability guarantee of the report
Present report does not contain intentionally fictitious fact, misleading statement or omission of major events and we guarantee its accuracy and authenticity.
We aim at giving play to the dialogue roles of the report, interpreting the value and impact brought about by SPC's fulfillment of social responsibilities and jointly discussing with stakeholders about the opportunities and challenges faced by us in the course of development and then seeking solutions. We welcome readers to propose your comments and recommendations on the report.
Ways to access to the report and extended reading
You can also read the electronic version of this report by visiting the website (http://www.spc.com.cn)
FORM OF READERS' FEEDBACK
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Address: 48 Jinyi Road, Jinshan District, Shanghai, China, 200540
Telephone: 86-21-57941941 Email box: firstname.lastname@example.orgFax: 86-21-57940050
Sinopec Shanghai Petrochemical Company Limited
Address: 48 Jinyi Road, Jinshan District, Shanghai, PRC
Fax: 86-21-57940050 Website:www.spc.com.cnE-Mail:email@example.comPostal Code: 200540