2022petro China Esgen

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STATEMENT OF THE BOARD OF DIRECTORS

The following is a statement from the Board of Directors (the “Board”) of PetroChina Company Limited (hereinafter
referred to as “PetroChina”, the “Company”, “we” or “us”) made in accordance with the requirements of the
Environmental, Social and Governance Reporting Guide (the “ESG Reporting Guide”) of the Stock Exchange of
Hong Kong Limited (HKEX).

The Board places strong emphasis on sustainable development management and has integrated environmental,
social and governance (“ESG”) into the Company’s operation. The Company has established an effective ESG
management mechanism and has formed a governance structure featuring clear hierarchy and labor division,
which allows the Company to effectively control ESG related risks and continuously improve our own corporate
governance standards.

As the highest decision-making body in respect of the ESG issues, the Board has ultimate
Responsibilities responsibilities for the ESG governance of the Company. The Board has established the
of the Board
Sustainable Development Committee (the “SDC”) consisting of three directors, with Mr. Huang
in Respect of
Yongzhang, executive director and president of the Company, serving as the chairman, and
ESG
responsible for overseeing the implementation of ESG policies, strategies and targets, and
Governance
reviewing the Company’s ESG Report.

The Company places strong emphasis on risk management of ESG issues. We


integrate macro policy environment, industry developments and trends, expectations
ESG and demands of stakeholders into our ESG risk identification analysis. We carry
Management out stakeholder engagement and professional research through various channels
Approach and to determine the focus areas and management measures of ESG risk control, and
Strategy integrate ESG considerations into the management system of our daily operations,
conduct regular review and supervision of ESG work progress, in order to
continuously improve and enhance ESG management standards.

The Company has formulated medium and long-term targets and quantitative indicators
for ESG matters, covering governance system and capabilities, green and low-carbon
transformation, greenhouse gas (“GHG”) emissions, sustainable use of resources, pollutant
Targets, emissions, health and safety, and human resources. We conduct progress review on a
Indicators regular basis. We incorporate benefits, operations, energy conservation, emission reduction,
and health, safety and environment (HSE) and compliance management as assessment
Progress Review indicators into the annual performance evaluation of the Company’s management. We
have engaged PricewaterhouseCoopers Zhong Tian LLP to conduct independent assurance
on certain ESG performance indicators of the Company to ensure the reliability of these
performance indicators (see Page 111 for details).
CONTENTS
STATEMENT OF Inside front cover
CORPORATE GOVERNANCE THE BOARD OF DIRECTORS
SUSTAINABILITY MANAGEMENT 16
ABOUT THE REPORT 2
GOVERNANCE FRAMEWORK 18
GOVERNANCE 22 ABOUT US 6

SUPPLY CHAIN MANAGEMENT 26 PETROCHINA AND UNITED 8


COMMUNICATING AND INTERACTING WITH STAKEHOLDERS 28 NATIONS (UN) 2030 AGENDA
SUSTAINABLE DEVELOPMENT
TECHNOLOGICAL INNOVATION AND DIGITAL 32 GOALS (SDGS)
EMPOWERMENT
MESSAGE FROM THE CHAIRMAN 12

PERFORMANCE DATA 105


CLIMATE CHANGE AND
INDEPENDENT PRACTITIONER’S 111
ENERGY TRANSITION
ASSURANCE REPORT
RESPONSE TO CLIMATE CHANGE 38
HONG KONG STOCK EXCHANGE 115
CURBING CARBON EMISSIONS 44
ESG REPORTING GUIDE CONTENT
LOW-CARBON TRANSITION 50 INDEX

TCFD RECOMMENDATIONS INDEX 118

GLOBAL COMPACT AND US 118

ENVIRONMENTAL PROTECTION GRI AND IPIECA/API INDEX 119

ENVIRONMENTAL RISK MANAGEMENT 56 APPENDIX Inside back cover


SUSTAINABLE UTILIZATION OF NATURAL RESOURCES 59
POLLUTANT DISCHARGE MANAGEMENT 63
CONSERVATION OF BIODIVERSITY 65

EMPLOYEE RIGHTS AND INTERESTS


AND DEVELOPMENT
EMPLOYEE HUMAN RIGHTS 72
HEALTH AND SAFETY 74
EMPLOYEE DEVELOPMENT 79
LOCALISATION AND DIVERSITY 83

SOCIAL CONTRIBUTION
COMMUNITY IMPACT MANAGEMENT 86
SOCIAL AND COMMUNITY WELFARE INVESTMENT 89
FEATURE: FIVE MAJOR INITIATIVES TO PROMOTE 92
RURAL REVITALIZATION
OVERSEAS COMMUNITY CONSTRUCTION 94
CUSTOMER SERVICE 99
PetroChina Company Limited
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

ABOUT Reporting Period

THE REPORT
This report covers the activities the Company undertook in 2022 pursuant to its ongoing
commitment to fulfil its ESG responsibilities during the period from January 1, 2022 to
December 31, 2022. For continuity and comparability, this report provides explanations
on past and future initiatives on particular issues.

Scope of the Report


Unless otherwise specified, the relevant data contained in the report covers the
Company and its wholly-owned and holding subsidiaries.

Explanation of Information
All information contained in this report has been taken from PetroChina’s
official documents and statistics as well as performance reports and statistics
gathered from the Company’s affiliated enterprises. It takes into account the
Company’s development priorities and stakeholders' concerns. This report has
been reviewed and approved by the Board on March 29, 2023. The Board and all
directors of the Company accept legal responsibility for the truthfulness, accuracy
and completeness of this report and assure that there are no misrepresentations,
misleading statements or material omissions herein.

Forward-looking Statements
Besides historical facts, any mention and description of events that may or could occur,
including but not limited to conditions, targets, estimations and business plans, are
considered to be forward-looking statements. The impact of external variables may result
in actual developments or trends that are different from those expressed in forward-
looking statements. Forward-looking statements contained in this report are made as at
December 31, 2022. PetroChina is not obliged to or responsible for modifying any of the
aforesaid forward-looking statements.

Standards of Reference
This report has been prepared in accordance with the Shanghai Stock Exchange
Guidelines on Self-Regulation for Listed Companies and the ESG Reporting Guide issued
by HKEX. Information disclosure is made with reference to the Recommendations of
the Task Force on Climate-Related Financial Disclosures (TCFD) issued by TCFD, the
Sustainability Reporting Guidance for the Oil and Gas Industry (2020) jointly issued by
the International Petroleum Industry Environmental Conservation Association (IPIECA)
and the American Petroleum Institute (API), the GRI Sustainability Reporting Standards
(2021) issued by the Global Sustainability Standards Board (GSSB) and the Ten Principles
of the United Nations Global Compact (UNGC) together with other guidelines.

Reporting Principles
This report observes the principles of materiality, quantitative, consistency and balance
in accordance with the requirements of the ESG Reporting Guide of HKEX.

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ABOUT THE REPORT

Materiality
This report adopts a materiality analysis methodology to select the ESG issues that are
matters of concern both internally and externally.

Basis for Assessing Material Issues

Internal aspect
Board and management discussion and evaluation of
material ESG issues
Awareness of the materiality of ESG-related issues
across management departments

Stakeholder aspect
Assessment of external ESG related policy requirements
and trends
ESG related concerns and feedback from stakeholders
such as investors, customers, professional institutions
and media

Materiality Analysis Procedures


The Company engaged with investors, employees, customers, ESG investment and ratings
agencies through various channels such as community interviews, periodic reports, field
surveys, thematic workshops and online communications (see Section 5 of Chapter 1 of this
report for details) to consider the demands of stakeholders and listen to their feedback,
allowing them to evaluate the importance of the respective issues from their own perspective.

During the year, the Company held over 150 ESG related seminars, conferences, surveys and
engagements. Stakeholders expressed greater concern over Board governance, compliant
operations, operating results, climate change, carbon emissions management, energy transition
and safety.

Collection Survey and


Prioritization
of issues evaluation

The Company collected key The Company comprehensively evaluated


issues on ESG related matters by the results from the above procedures
making reference to the regulatory and prioritized material issues based on
requirements of the listing venues, the two aspects of “importance to the
policies adopted at the place of sustainable development of the Company”
business, ratings and feedback and “importance to stakeholders”, and
of international rating agencies, accordingly determined the period and
international advocacy standards, extent of impact of each issue to ensure
media reports, industry benchmarking accuracy in the disclosure of information.
analysis, and expectations from
We identified a total of 21 material
governments, investors, employees,
issues that have a significant impact
customers and other stakeholders,
on the Company. For the ranking of
and taking into account the strategic
material issues, please refer to the
development planning of the Company.
materiality matrix (chart) on page 4.

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PetroChina Company Limited
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

Materiality Matrix
High

8 2

9 7

1 3

16 5 15
Importance to stakeholders

20 18 4

13
21

17 6

10

14 11

19

12

Low High
Importance to the sustainable development of the Company

Governance Environment Society


1 Board governance 7 Energy transition 15 Safety
2 Compliant operation 8 Climate change 16 Human rights
3 Operating results 9 Carbon emissions 17 Service quality
management
4 Technological innovation 18 Health
10 Waste management
5 Integrity risk prevention 19 Employee training
11 Water resources
6 Supply chain 20 Remuneration
management 12 Oil spill risk management
21 Community contribution
13 Biodiversity protection
14 Land resources

Quantification

The Company conducts quantified performance management for material ESG issues,
which covers governance, safety, climate change, the environment, our employees, and
society. Please refer to the relevant chapters of this report for details.

4
ABOUT THE REPORT

Consistency
This report observes the principle of consistency to ensure comparability with historical
data. In 2022, the scope of statistics and method of calculation for the remaining ESG
performance indicators disclosed in this report remain consistent with those in the
previous year without any material adjustments.

Balance
This report aims to reflect the Company’s ESG management and control strategies
and performance in an objective and comprehensive manner, and to enhance the
transparency of its ESG information.

Enhancing the Report


In order to address the concerns of our investors and comprehensively reflect the
Company’s ESG governance and practices, our 2022 report specifically enhanced
the description of our work in Board governance, ESG performance management,
technological innovation, response to climate change, green and low-carbon
transformation, ecological environment and biodiversity protection, human rights
protection, community engagement and social welfare investment, which are issues
of concern to our investors at large and rating agencies. For the first time, we have
dedicated a separate section for the discussion on “Climate Change and Energy
Transition” and enhanced information disclosure on climate-related matters under the
TCFD framework. In this year’s report, we have added 19 new disclosures of performance
data covering areas such as safety, climate change, environment, employee and society.

Availability of the Report


This report is available in simplified Chinese, traditional Chinese and English. In the case
of any discrepancy, the simplified Chinese version shall prevail.

To view or download an electronic


copy of this report, please visit
our Company’s website www.
petrochina.com.cn where further
information is also available.

5
PetroChina Company Limited
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

ABOUT US PetroChina Company Limited is a joint stock limited company incorporated on November 5,
1999, upon the restructuring of the former China National Petroleum Corporation (now China
National Petroleum Corporation Limited, abbreviated as “CNPC”). The American Depositary
Receipts ("ADRs"), H-shares and A-shares issued by our Company were listed on the New
York Stock Exchange ("NYSE") on April 6, 2000, the Hong Kong Stock Exchange (stock code:
857) on April 7, 2000 and the Shanghai Stock Exchange (stock code: 601857) on November
5, 2007, respectively, of which, the ADRs were delisted from the NYSE on September 8, 2022,
EST. PetroChina is one of the major oil and gas producers and distributors in China, and also
a significant player in the global oil and gas industry. We engage in a wide range of activities
related to oil, natural gas and new energy and new materials.

Our Strategic Our Mission


Focus and Values

Innovation, Resources, Market, Pursuing green development and


Internationalization, supplying energy,
Green and Low-carbon Fueling customers’ growth and powering
people’s happy life with new energy

Our Honors FORTUNE “FORTUNE Global Top 500” Number 4

Petroleum Intelligence
Global Top 50 Petroleum Companies Number 3
Weekly

Brand Finance “Most Valuable Oil & Gas Brands” Number 3

China Securities Excellent Listed Company Excellent CEO of the Listed


“Golden Bauhinia” Company
Award 2022 Excellent Entrepreneur

Oil & Gas Industry Most Honored Best Investor Relations Team
Companies Number 1 Number 1

Institutional Best ESG Number 1 Best Investor Relations


Investor Best CFO Number 1 Professionals (Individual Award)

Best Investor Relations Enterprise


Number 1

Corporate Best Investor Relations Company Best CEO of Asia


Governance Asia “Asia Best Environmentally Responsible Best Investor Relations Officer
Excellence Award” Company

China Association
for Public Best ESG Practices
Companies

6
ABOUT US

BUSINESS STRUCTURE
Domestic Oil and Gas Business
PetroChina is the leader of China’s oil and gas exploration and development. We
operate in numerous major oil and gas producing regions such as Daqing,
Changqing, Tarim, Southwest China, Xinjiang and Liaohe. In 2022, our domestic
crude oil output amounted to 767.4 million barrels and marketable natural gas
output amounted to 4,471.3 billion cubic feet, with a total oil and natural gas
output equivalent of 1,512.6 million barrels.

Overseas Oil and Gas Business


The Company is engaged in oil and gas exploration and production in many
Exploration, development, countries over the world. Currently, we have established five international oil
transportation, production and gas cooperation zones in Central Asia-Russia, the Middle East, Africa, Latin
America and Asia-Pacific. Our international oil and gas cooperation continued to
and sales of crude oil and
Oil, gas and grow in scale while operational quality has also improved. In 2022, oil and gas
natural gas; new energy production of the Company’s overseas businesses amounted to 172.8 million
new energy
business business. barrels of oil equivalent.

New Energy Business


The Company actively promotes integrated development of oil, gas and new
energy in order to build an “oil, gas, thermal energy, power, hydrogen” integrated
energy company with robust development in new energy businesses such as wind
and photovoltaic (“PV”) generation and geothermal energy. In 2022, the Company
added 10.06 million square meters of geothermal heating installations. Along
with wind and PV generation installations of total size over 1.4 million kW, our
new energy development in China has the capacity to replace 8 million tons of
standard coal per year.

The Company owns 14 ten-million-ton-level refining bases in China. In 2022, we


processed 1,212.7 million barrels of crude oil and produced 105.354 million tons
Refining crude oil and petroleum of refined oil.

products; production and sales The Company is engaged in producing six major categories of chemical products:
synthetic resin, raw materials of synthetic fiber and polymers, synthetic rubber,
Petrochemical of basic, derivative and other
urea, organic and inorganic compounds, with thousands of trademarked
and new petrochemical products and
materials products. Among such categories, our production capabilities of products such
new materials business. as ethylene, synthetic resin and synthetic rubber are ranked among the best in
business
China. In 2022, we produced 31.568 million tons of chemical products and 855,000
tons of petrochemical new materials in China.

The Company operates over 20,000 service stations in China covering 31 provinces
(including autonomous regions and direct municipalities) and the Hong Kong
Sales and trading of refined Special Adminstration Region. We actively develop international trading
business and have established three major oil and gas operation centers in
products and non-oil products.
Asia, Europe and the Americas. In 2022, the Company's total refined products
Sales business
sales amounted to 150.649 million tons, of which domestic sales accounted for
105.164 million tons.

The Company has a natural gas sales network with coverage across China. In
Transportation and sales of
2022, the Company’s natural gas sales amounted to 260.284 billion cubic meters,
Natural gas natural gas. of which domestic sales accounted for 207.096 billion cubic meters.
sales business

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PetroChina Company Limited
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

PETROCHINA AND UNITED NATIONS (UN) 2030


AGENDA SUSTAINABLE DEVELOPMENT GOALS (SDGs)
UN SDGs Our initatives and performance

Providing comprehensive and high quality assistance for rural revitalization based on five focus areas of industry,
talent, culture, ecology and consumption
In 2022, we launched 1,080 rural revitalization projects and invested over RMB400 million in funding
Launching the featured local industry promotion initiative in 10 designated assistance counties by combining
natural resources in the assistance areas
Supporting the development of rural tourism and recreational agriculture in poverty alleviation regions to help build
a development ecology model which integrates the primary, secondary and tertiary industries
Facilitating employment in poverty alleviation regions. In 2022, we helped 4,326 people from 10 counties to obtain
migratory employment

Supporting the building of agricultural irrigation facilities, corn drying plants and smart granaries to strengthen food
security in remote regions
Providing funding and technical support for agriculture, husbandry and food processing industries in remote
regions
Launching a comprehensive “Consumption as assistance and empowerment” initiative and making use of our own
sales network to boost sales of unique agricultural products

Implementing the Outline of the “Healthy China 2030” Plan and issuing the Guidance on Strengthening Employee
Health Management to safeguard occupational, physical and mental health of our employees and building a healthy
enterprise
Percentage of health records created for employees at 100%, detection rate of occupational health hazards in the
workplace at 100%, percentage of employees exposed to occupational health hazards receiving health checks at 99.15%
Undertaking several initiatives including helping remote regions improve rural clinic infrastructure, arranging for
medical institutions to conduct mobile clinical visits and training rural healthcare professionals, in order to improve
healthcare conditions in remote regions
Innovating healthcare assistance models to provide healthcare insurance and subsidies for treatment and
rehabilitation of serious cases to families in difficult economic conditions in order to alleviate their burden
Partnering with professional institutions to launch healthcare support programs such as the “Kids Care” program
and the “Internet + healthcare” project

Helping youths in underdeveloped regions access equal education opportunities by establishing specialist schools,
innovating student support models and connecting various forms of education resources, leading joint efforts in
addressing the issue of fair education
Providing assistance to students in difficulties as well as helping to train primary and secondary school teachers
and administrators based on our “Xuhang Program” and “Teachers Training Program”, so as to improve cultural
development and growth potential in remote areas. In 2022, our “Teachers Training Program” helped to train over
20,000 education workers in 10 designated assistance counties
Launching skills training programs specific to different regions and talents in order to help the impoverished find
employment and start businesses. We established our own “Rural Revitalization Workshop” training platform and
formulated over 300 sessions on rural revitalization and specialist skills based on the needs of assistance regions.
During the year, our training platform recorded 197,000 visits
Offering our scholarship program for the 22nd consecutive year. Throughout the year, we provided a total of
RMB4.47 million in scholarships for 685 excellent university students in 17 higher education schools including the
China University of Petroleum

Observing the principle of gender equality and treating employees of different genders equally
Strictly complying with the relevant provisions relating to maternity leave and lactation leave and protecting the
rights and interests of female employees

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PETROCHINA AND UNITED NATIONS (UN) 2030 AGENDA SUSTAINABLE DEVELOPMENT GOALS (SDGS)

UN SDGs Our initatives and performance

Providing assistance to communities in the construction of the water-saving irrigation projects and promoting
agricultural development in local regions
Implementing the “Sweet Community” and other clean drinking water projects, assisting in the building of wells in
local areas and addressing issues related to difficulties in access to drinking water in the communities

Making strong efforts in securing oil and increasing natural gas production to contribute to China’s energy structure
optimization. Domestic marketable natural gas output amounted to 207.096 billion cubic meters, increasing by 5.9%
over the past year
Importing natural gas resources through multiple channels
Promoting the development of new energy and new materials, actively expanding our new energy businesses
in geothermal heating, wind generation, PV generation, hydrogen fuel and charging stations. Our new energy
development in China has the capacity to replace 8 million tons of standard coal per year

Maintaining a "people first" approach, treating each and every employee with respect and fairness, optimizing our
remuneration and welfare system, safeguarding the legal rights of our employees and providing smooth promotion
paths for employees to develop their careers
Making strong efforts in implementing our strategy of strengthening the enterprise through talents. During the year, total
training time amounted to 15.1 million hours and average training time per employee amounted to 37.9 hours
Promoting the construction of people’s livelihood projects to improve the living and working conditions of
frontline employees, securing the personal benefits of employees and enabling the income of employees to grow
simultaneously with the development of the Company
Fostering local suppliers and contractors during our construction and operation to create more jobs for local people
and promote the development of local economy

Implementating innovation strategies extensively, optimizing our R&D innovation system, strengthening key core
technology research to achieve breakthroughs, develop technology innovation capabilities and talents, focusing
on technological cooperation, exchanges, standard setting, protection of technological intellectual property, and
transformation and application of research achievements, etc.
Establishing new research institutes in Shanghai, Shenzhen and Japan
Percentage of invention patents and applications for invention patents under the Patent Cooperation Treaty
continues to increase
Employing 27,913 R&D personnel, with an R&D expenditure amounting to RMB28.718 billion during the year,
representing a 21.0% increase as compared to the corresponding period last year and accounting for 0.9% of our
operating revenue
Conducting digitalization transformation based on three major lines of business development, management reform and
technology empowerment, facilitating the digital and intelligent development of the Company, developing smart oil and
gas fields, smart refining and smart sales, and supporting industrial transformation and upgrading

Prohibiting child employment and forced labour, and no event involving child employment and force labour reported
Opposing any form of discrimination in gender, region, religion, nationality, etc., and the proportion of female
employees and foreign employees in overseas projects reached 24.54% and 96.69% respectively

Managing community impact, helping to create job opportunities, contributing to tax revenue and growing together
with the community
Improving infrastructure in remote areas and developing unique industries to promote local economic and social
development
Performing the responsibilities and mission of an official oil and gas partner, providing all-weather and all-round
support and services on clean energy supply for the preparation and holding of the Beijing 2022 Olympic and
Paralympic Winter Games, and “lighting” the first hydrogen-fueled “green” torch in Winter Olympics history

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PetroChina Company Limited
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

UN SDGs Our initatives and performance

Incorporating environmental risks into our internal control risk system to eliminate potential large-scale
environmental pollution and ecosystem destruction events
Using natural resources on a sustainable basis and improving energy usage efficiency. During the year, we saved 8.71
million cubic meters of water, 1,280 hectares of land, and energy equivalent to 710,000 tons of standard coal
Strictly monitoring the generation of waste and discharge of pollutants from our production processes to enhance
pollution control standards and performance

Establishing a Leading Group on Carbon Peak and Carbon Neutrality


Establishing a three-step green and low carbon transformation path of “clean energy substitution, strategic
succession and green transition” and setting a low-carbon goal of endeavoring to achieve “near-zero” emissions by
around 2050
Formulating a carbon peak action plan setting out four major initiatives and ten major tasks
Strengthening carbon emissions management and carbon risk response, optimizing our carbon emissions control
system, participating in the establishment of a carbon market, accomplishing year-on-year reduction in GHG
emissions and methane emissions intensity of our units in China
Organizing active tree planting and reforestation activities to create carbon sinks and carbon neutral forests to
provide forest carbon offsets
Maintaining deep involvement in activities of the Oil and Gas Climate Initiative (OGCI) and China Oil and Gas
Methane Alliance
Conducting comprehensive research on Carbon Capture and Storage / Carbon Capture, Utilization and Storage (“CCS/
CCUS”) and striving to promote the commercialisation of CCS/CCUS
Attending the side event on "Nature-based Solutions for Synergistic Governance of Climate and Biodiversity" at the
27th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP27), where we
introduced to the audience PetroChina's innovative practices to promote synergistic governance of climate change
response and biodiversity conservation

10
PETROCHINA AND UNITED NATIONS (UN) 2030 AGENDA SUSTAINABLE DEVELOPMENT GOALS (SDGS)

UN SDGs Our initatives and performance

Adhering to the environmental protection philosophy of clean development, continually carrying out environmental
control and monitoring projects to protect the ecological environments and biological diversity in the business
locations

Strictly complying with local environmental protection policies and laws and regulations governing the prohibition
of poaching, picking, trading of nationally protected wild animals and plants and wildlife products as well as the
protection of local rare species and biological diversity
Formulate and publish regulatory and management systems such as Ecological Protection Action Plan and
Prohibitions Regarding Ecological and Environmental Protection
Continuously improve biodiversity protection system and incorporate biodiversity risk into project life cycle
management
Launching a wide range of biodiversity protection projects to protect wildlife habitats

Fully implementing the Anti-commercial Bribery Manual, the Integrity and Compliance Manual, the Employee
Handbook and the Corporate Culture Manual together with other systems and regulations, abiding by business
ethics, adhering to the principles of honesty and trustworthiness, equal consultation, mutual benefits, promoting
“Trading under the Sunshine”and striving to maintain fair and just competition order in business activities

Strengthening the ESG management of the supply chain


Participating the activities of the China Oil and Gas Methane Alliance
Partnering with OGCI member companies to share technology and experiences in order to promote global climate
governance
Participating actively in China’s methane monitoring pilot projects and conducting study on “China’s oil and gas
industry methane emissions control targets and methods by 2030”

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PetroChina Company Limited
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

MESSAGE FROM THE CHAIRMAN

Thank you for reading this report as well as for your interest in before destruction”, we strive to meet the society’s growing
and support to PetroChina now and over time. energy consumption demands, while accelerating our transition
towards a green and low-carbon economy. In the past year,
Time flies fast. With concerted efforts and a determined
our Company continued to optimize our two major industrial
endeavour, we have been through a significant albeit
chains and made strong efforts to implement our strategy of
unusual year of 2022. In the past year, the world experienced
increasing gas production while stabilizing oil output. As a result,
unprecedented, rapid, and intensifying changes. The highly
our crude oil output has increased for the fourth consecutive
volatile international energy prices posed setbacks to the energy
year, and our natural gas capacity has been growing at an even
transition initiative and brought additional uncertainty to the
faster pace. Domestic sales of natural gas amounted to 207.096
development of the energy industry. In the midst of a complex
billion cubic meters during the year, which contributed to the
situation, we nevertheless managed to withstand serious tests
optimization of China’s energy structure. By rapidly scaling up
such as oil price volatility, floods and other natural disasters,
the development of new energies, adopting a hybrid energy
overcame challenges brought about by changes in international
system that integrates wind, solar, gas, and electrical powers,
affairs, and achieved remarkable results in terms of corporate
and speeding up plans to develop geothermal, hydrogen and
governance, business expansion, scientific and technological
CCUS technologies, we have completed wind and PV installations
innovation, green transition, and energy security. We broke new
of over 1.2 million kW in size, bringing our total installations to
records in production, operations, reform and developments,
over 1.4 million kW in size, and an overall capacity for developing
achieved historic breakthroughs as well as record highs in our
and utilizing new energies that amounts to 8 million tons of
performance. In this critical year for the 14th Five-year Plan, we
standard coal per year. A major breakthrough was also achieved
improved our Company’s overall sustainability performance.
in the strategic layout, transition and upgrading of petrochemical
Setting our sights on the carbon peak and carbon neutrality and new materials business, which increased our new chemical
goals, we made all-round efforts to expedite our transition materials output by 56%. Moreover, the integrated energy
towards a green and low-carbon economy. Energy production service stations that we established for the purpose of selling
and consumption are major contributors to climate change. Our oil products, and the “people-vehicle-living” ecosphere that we
focus is on achieving “near-zero” emissions by around 2050. built are starting to show results. To strengthen cooperation at
We enhanced the top-level design of our green and low-carbon multiple levels and multiple directions, we actively participated
transformation strategy, and formulated and issued the Green in global actions against climate change, such as taking part
and Low-carbon Development Action Plan 3.0, pursuant to in the carbon reduction projects operated by the Oil and
which, we established a three-step path to energy transition that Gas Industry Climate Initiative (OGCI) and the China Oil and
consists of the "clean energy substitution, strategic succession Gas Methane Alliance, hosting public welfare activities in joint
and green transition" stages. As such, the outline of a green collaboration with the China Greening Foundation and other
industry plan centered around six bases and five major projects organizations, enhanced disclosure of climate information
has been determined. Believing in the principle of “construction under the framework developed by the Task Force on Climate-

12
MESSAGE FROM THE CHAIRMAN

related Financial Disclosure (TCFD), and, together with industry We maintain a mutually beneficial win-win strategy to
partners, international organizations and the general public, we create longstanding values for stakeholders. Adhering to
contributed our efforts to combat climate change. We also took a human-centered approach in our development, we stay
active steps to become a green company. By strengthening the committed to pursuing green development and supplying
control of both intensity and total volume of energy consumption energy, to fueling customers’ growth and powering people’s
and greenhouse gas (GHG) emissions, making strong efforts in happy life with new energy. We practice sincere cooperation
energy conservation and emissions reductions, and accelerating with stakeholders and share the fruits of our business growth.
the substitution of clean energy for fossil energy, we facilitated We actively respond to China’s rural revitalization strategy, and
the transition of our production processes towards green and focus on developing the five key areas of industry, talent, culture,
low-carbon technologies. We completed the three-year remedial ecology, and consumption to improve the livelihood of the
plan for rectifying our production safety issues, under which, we rural population in a comprehensive and high-quality manner.
promoted the prevention and control of pollutants, and continued With the implementation of over 1,400 projects related to rural
to fight the battle against pollution to keep our skies blue, waters revitalization and social welfare during the year, benefitting more
clear, and lands clean. We also stepped up our efforts to protect than 11 million people, we continue to make solid progress in
the ecological environment and biodiversity, promote the poverty alleviation. In addition, we powered the Beijing 2022
harmonious coexistence of humanity and nature, to help create Winter Olympics and Winter Paralympic Games with green
a Beautiful China. In 2022, Domestic GHG emissions per unit of energy by helping to ignite the first environmental-friendly
oil and gas production, methane emission intensity and energy Winter Olympics torch in history with our hydrogen fuel. We
consumption decreased by 4%, 11%, and 0.45% respectively made every effort to ensure clean energy supply throughout
over the past year. No major safety and environmental incidents the games, and sponsored 200,000 tons of Chinese Certified
happened during the year. Emissions Reductions (CCERs) to offset carbon emissions, to
assist the Games in achieving their carbon neutral goal. As
always, we prioritize the lives and safety of our employees as
We focused on reform and continuous innovation to modernize
well as their physical and mental well-being. We furthered our
our corporate governance structure and governance capacity.
efforts to build a healthy and safe enterprise, protect the rights
In pursuit of our strategic goal to become a world-class
and interests of employees, facilitate their career growth, strive
international energy company, we improved the top-level design
to improve the working and living conditions of our employees,
of our corporate governance and continued to modernize our
and guarantee that all employees as well as the general public
corporate governance structure and governance capability.
can reap the fruits of our Company’s development. Moreover,
We continue to improve the Company’s governance structure,
we are committed to a mutual gains approach, hence we
organizational structure, operating mechanism and system.
strengthened our communication and cooperation with host
Not only was our overseas business management system
country governments, partners and communities, invested more
fully reformed, but our major businesses were also efficiently
on the welfare of communities, nurtured local development
synergized, gradually showing the benefits of resource sharing,
potential, and facilitated local economic and social development.
system integration, and coordination. The new energies and
new materials business segments were established one after
At present, the world is undergoing an era of volatility and
another, accumulating momentum for our Company’s long-
change, with changes in the world, changes in the times, and
term development. We also strengthened our compliance and
unprecedented historical changes. In 2023, the macroeconomic
integrity risk prevention management, improved our ESG risk
situation in and outside China will become more complex
management and control, to steadily drive our risk management
and volatile. Instability, uncertainty, and unpredictability will
capabilities forward. Staying committed to empowering our
become the norm. In the face of coexisting opportunities,
Company through innovation, we carried out vertical reforms
risks and challenges for development, the energy industry will
of the science and technological system, created more effective
nevertheless continue to move forward and carry out full-scale
recruitment, training, and incentive programs for talents in
reforms. Embracing high quality sustainability, PetroChina will
science and technology, generated enthusiasm among scientific
make every effort to improve its energy capacity and efficiency,
and technical personnel for innovation, and strived to create
technological innovation, global competitiveness, modern
a new ecology for scientific and technological innovation. A
corporate governance, global impact, and leadership skills as
ten-year action plan for important foundational research was
an outstanding entrepreneur, with the aim of swiftly becoming
launched, pursuant to which, we firmly established multiple
a world-class international energy company, fully promoting
research institutes that serve to advance research on new
economic and social development, and working hand in hand
energies and new materials, and made substantial progress and
with stakeholders to create a better future.
achievements in key and core technologies such as geothermal
power, hydrogen power, and energy storage. Our computerized
system now supports an integration of applications as well as
shared services, thereby allowing us to accelerate the pace of
digital transformation and smart development, to build a digitally
smart PetroChina.
PetroChina Company Limited Chairman of the Board

13
CORPORATE GOVERNANCE
At PetroChina, we advocate value creation, upholding fundamental principles and breaking new ground,
legal and regulatory compliance, collaboration, participation, and shared benefits as our governance
doctrine. Through improvements to the modern enterprise system with Chinese characteristics and
strong efforts to promote modernization of governance system and capabilities, we ensure that our
decision-making is scientific, our checks and balances are effective, our operations are standardized
and our supervision is powerful. We continue to improve corporate competitiveness, innovative
capabilities, controlling power, influence and risk management capabilities. Sustained improvement in the
effectiveness of our governance allows us to promote high quality development of the Company, fulfil our
social responsibilities, and safeguard the interests of the relevant stakeholders of the Company.

The UN Sustainable Developmen Goals


PetroChina Company Limited
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

SUSTAINABILITY In support of international standards and initiatives such as the UN Global Compact,
the UN's 2030 Agenda for Sustainable Development, and in pursuit of sustainable
MANAGEMENT development, we advocate delivery of clean, reliable and affordable energy to the public
in a responsible, sustainable and ethical manner, abide by laws and regulations, respect
human rights, protect the environment and make contributions to the economic and
social development of the locations with our business presence.

We guide and manage the efforts in respect of sustainable development through the
work of the Shareholders’ meetings, the Board of Directors and its special committees,
the Supervisory Committee, and the management team led by the President. The
philosophy of sustainability and our emphasis on high quality development are deeply
integrated in the entire process of our business operation for effective control of
environmental, safety and social risks, as well as continuous improvement of our
sustainable development capabilities.

Progress Made on Sustainable Development Management in 2022


Strengthening the ESG control functions of the Board so as to further improve the structure of the Board

Strengthening Value-oriented headquarters essentially established with structure and organization continuously undergoing
corporate optimization and adjustment
governance Launching the “Year of strengthening compliance management” initiative, addressing specific
operational and business compliance management issues to eliminate potential compliance risks

Strengthening risk assessment, having audit reports and risk management reports reviewed by the Board and
passing relevant resolutions

Convening ESG work seminars

Incorporating green and low-carbon transformation, energy conservation and emissions reduction, ecological and
environmental protection into our Company’s 14th Five-Year Plan
Promoting green
and low-carbon Establishing a Leading Group on Carbon Peak and Carbon Neutrality and a Leading Group on New Energy and New
transformation Materials Business Development with monthly meetings to study, strategize and promote carbon emission peak
and carbon neutral work as well as new energy and new materials business development

Publication and implementation of the Company’s Green and Low-carbon Development Action Plan 3.0

Enhancing the Company’s new energy and new materials organizational structure, renaming and establishing the
Oil, Gas & New Energies Branch and the Refining, Chemicals & New Materials Branch, and establishing the new
energy and new materials business segments

Commencing action on building a green enterprise, conducting annual evaluation for our subsidiaries on ecological
and environmental protection and sustainable development aspects, and incentivizing our subsidiaries to expedite
green and low-carbon transformation

Incorporating response to climate change and green and low-carbon transformation and development into
compulsory training material for senior management, conducting promotion and training on green and low-carbon
transformation policies and technologies on all our employees

Establishing the Wisdom Pool Research Institute in Japan while facilitating the establishment and operation of our New
Materials Research Institute in Shanghai and New Energy Research Institute in Shenzhen

Establishing a GHG monitoring center, planning a carbon assets management platform, strengthening basic
management of carbon emissions, promoting regulated management of carbon assets and development of carbon
asset projects

Observing business ethics, respecting and protecting human rights, caring for employees and committing to
Fulfilling social greater social contributions
responsibility Promoting community engagement, implementing community investment projects, supporting rural growth and
developing local sustainable capabilities

16
CORPORATE GOVERNANCE

Sustainable Development Committee


The Sustainable Development Committee under the Board is responsible for overall planning supervision
of ESG issues of our Company. Mr. Huang Yongzhang, the executive director and the president of our
Company, serves as the chairman of the committee, and Mr. Jiao Fangzheng, the executive director and
chief geologist of our Company, and Mr. Ren Lixin, the executive director and senior vice president of our
Company, serve as members of the committee.

Responsibilities of the Sustainable Development Committee

To work on the sustainable development of our Company (including but not limited to environmental, social and
governance matters), to identify and assess major risks and impacts on the sustainable development of our Company,
to enhance risk management (including that in respect of environmental, social and corporate governance), and to
make relevant proposals to the Board

To supervise our Company’s commitments and performance on addressing climate change, ensuring health and
safety and environmental protection and fulfilling social responsibilities in relation to key issues, and to make relevant
proposals to the Board

To examine the approach and strategies, goals, measures and relevant key issues in respect of the sustainable
development of our Company, and to supervise and review the implementation of the sustainable development goals

To review the environmental, social, and governance report and the health and safety and environmental protection
report of our Company annually and to make relevant proposals to the Board

To monitor important information concerning sustainable development, assess significant impacts of environmental,
social and governance issues on relevant stakeholders, monitor the Company's relevant safety and environmental
risks, formulate response measures, and make relevant proposals to the Board

Other matters as delegated by the Board

Significant Work Performed by the Sustainable Development Committee During the Year

Convening Sustainable Development Committee meetings to consider the resolution on the 2022 ESG Report of our
Company and the resolution on the 2022 Health and Safety and Environmental Protection Report of our Company and
passing the respective resolutions

Convening ESG work seminars, discussing ESG targets and formulating a three-year action plan for ESG work

ESG Performance Review and Management Remuneration


The Company incorporates various indicators relating to benefits, operations, energy conservation,
emission reduction, HSE and compliance management into our management performance review. The
results of the review are linked to their remuneration. In particular, emissions reduction indicators carry
10% weighting and up to 10 points may be deducted for non-performance of relevant indicators, while for
safety, environmental protection and compliance management indicators, 5 points would be deducted for
non-performance of each indicator. In 2022, we have incorporated energy consumption, GHG emissions
and pollutant control into the annual performance review for the heads of relevant departments and
subsidiaries and implemented performance review and granted awards on new energy and new materials
business development, in order to further promote our Company’s green and low-carbon transformation.

17
PetroChina Company Limited
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

Management Performance Review

Category and weighting KPI Weighting

Economic value-added 15%

Average investment capital rate of return 10%


Benefits
Net profit 15%
(60%)
Profit before tax 10%

Free cash flow 10%

Domestic oil and gas equivalent reserve


10%
conversion rate
Operations
(30%) Oil and gas output 10%

Net profit per capita 10%

Energy savings 2%

Water savings 2%
Energy
conservation and Chemical oxygen demand (COD) 1.5%
emission reduction
Ammonia emissions 1.5%
(10%)
Sulphur dioxide emissions 1.5%

Nitrogen oxides emissions 1.5%

Fatality rate per million work hours


5 points
Major safety production liability incidents deducted for
HSE and compliance
management non-
Major environmental liability incidents
performance
(mandatory) of each
Investment planning control
indicator
Internal control system operation evaluation

GOVERNANCE Ever since its incorporation, PetroChina has set in place a corporate governance
framework in compliance with regulatory requirements and international practices,
FRAMEWORK and such a framework has been improving from time to time by considering the
actual operating circumstances and building a corporate governance system based on
“statutory and transparent powers and responsibilities, coordinated operations, effective
checks and balances”, so that the modernization of the corporate governance system and governance capabilities could be
continuously enhanced. The respective authorities and responsibilities of the Shareholders’ meeting, the Board of Directors
and its special committees, the Supervisory Committee, and senior management headed by the President have been clearly
defined. Such a management structure allows for close coordination and is highly effective.

We actively optimize the legitimate decision-making mechanism in keeping with laws and regulatory requirements, enhance the
assessment of such a mechanism, set up and improve the retrospective and lifelong accountability system of decision-making.
We keep on improving monitoring and checking exercising of power and following the principle of consistency of power and
responsibility. We clearly delineated the limits of authority at different levels and set out a list of duties and powers. We made well-
coordinated use of internal monitoring resources of legal affairs, internal control, auditing, internal inspection and inspection tour.
We reinforced self-monitoring by means of double checking by dedicated departments and cross checking between superior
and subordinate departments. We receive social supervision voluntarily to procure well-grounded decision making, appropriate
authorization, well-controlled exercise of power and disciplinary action against any abuse of power.

18
CORPORATE GOVERNANCE

Corporate Governance Structure Chart

The governance system of our Shareholders’


Company meets the requirements General
of the Company Law of the People’s Meeting
Republic of China (“Company
L aw ” ) , t h e Se c u r i t i e s L aw o f Nomination Committee
the People’s Republic of China
(“Securities Law ”), the relevant Audit Committee
provisions of the China Securities
R e g u l ato r y Co m m i ss i o n , t h e Board of Supervisory
Examination and Remuneration Committee
regulatory requirements of stock Directors Committee
exchanges where shares of our
Company are listed and the Articles Investment and Development Committee
of A ssociation of PetroChina
(hereinafter referred as “Articles of
Association”). Sustainable Development Committee

Senior
Management

In 2022, the Company held one


shareholders’ meeting , w here
11 resolutions were considered Shareholders and Shareholders’ Meeting
and approved. The shareholders’
meeting complied with regulatory The Shareholders’ meeting is the highest authority in the Company, exercising functions
rules and statutory procedures, and and powers in accordance with the law. PetroChina’s Shareholders’ meeting is held
the resolutions adopted are legal annually to ensure that all shareholders enjoy equal status and exercise their rights
and valid. For details, please refer to
the relevant announcement on our effectively.
website.

Protection of Shareholders’ Rights and Interests


We attach great importance to the protection of shareholders’ rights and interests, especially
the legitimate rights and interests of minority shareholders. Since 2018, the Company has
been implementing a “cumulative voting system” for election of directors and supervisors,
strengthening the power of minority shareholders and promoting active participation
The Company complies with the of shareholders in the governance of the Company. Independent directors also actively
relevant rules of the Shanghai Stock
Exchange Self-regulation Guidelines
participate in the governance of the Company, providing independent advice and contributing
5 - Transactions and Connected to the protection of the rights of minority shareholders. We continue to provide positive
Transactions, and the continuing returns to our shareholders. In 2022, we paid a historic dividend of RMB0.42 per share (tax
connected transactions between the
inclusive) totaling RMB77.34 billion, an increase of 86.5% over the past year.
Company and its connected persons
are governed by the principle of fair,
At the time of our listing, the Company and CNPC entered into a continuing connected
equitable and open pricing. Such
transactions will not adversely affect transaction agreement. We update the particulars (including the service scopes and transaction
the Company’s future financial amounts) of the continuing connected transactions with CNPC on a regular basis in accordance
situation or operating results, nor
with regulatory requirements and submit these to the Board and the shareholders’ meeting
will they result in any reliance on
its connected persons or affect the of the Company for approval. The historical transaction amounts of the continuing connected
Company’s independence. For more transactions in the past years were all within the caps approved by the shareholders’ meeting of
details about connected transactions the Company and the Board and disclosed in our annual report every year. In order to ensure the
in 2022, please refer to our annual
report for 2022. fairness and reasonableness of the connected transactions, CNPC, as a connected shareholder
of the Company, abstained from voting on resolutions concerning connected transactions in the
shareholders’ meetings. For details of the Company’s shareholding structure, please refer to the
Company’s 2022 annual report.

19
PetroChina Company Limited
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

Directors, Board of Directors and Board Special


Committees
The directors are elected at our shareholders’ meetings and are accountable to the
shareholders of the Company. The term of office is three years, renewable at the
end of the term upon re-election and re-appointment. Directors act in the interest
of shareholders as a whole, strictly adhere to the principle of diligence, integrity and
pragmatism, and conscientiously perform their duties. Currently, the Company has
11 directors, including four independent non-executive directors. The proportion of
independent directors comply with regulatory requirements. For details of changes in
our Board composition, please refer to the Company’s 2022 annual report.

Board of Directors and Special Committees


The Board of Directors sets up five special Board committees, namely the Nomination
A total of seven Board meetings Committee, the Audit Committee, the Examination and Remuneration Committee, the
and 10 meetings of special Board Investment and Development Committee, and the Sustainable Development Committee
committees were held in 2022 with
36 Board resolutions being passed, as
(the composition, division and work of each Board committee is detailed in our annual
detailed in our website and our annual report for 2022). The above-mentioned committees are mainly responsible for providing
report for 2022. support to the Board in decision-making. The Directors sitting on the special Board
Committees focus on matters according to their division of duties and make proposals
for the improvement and enhancement of the management level of the Company.

Board Diversity
We implement the Diversification Policy of the Composition of the Board of Directors, so that
Board members are engaged based on the operational model and work requirements of
the Company, while taking into account their nationality, gender, age, cultural and educational
background and professional experience. The Company continuously optimize the Board
composition so as to further improve the decision-making capabilities and standards of the Board.
For details of Board members, please refer to our website and our annual report for 2022.
Gender
Female 9.1%
Position
Male 90.9%
Chairman
1
Country and region
Vice chairman
1 Mainland China
63.6%
Executive directors
3 Hong Kong SAR
27.3%
Non-executive directors Board
2 Diversity Japan
9.1%
Independent non-executive
directors
4

Professional background Age


Petrochemical 63.6% 51-60 63.6%

Finance/accounting 18.2% 61-70 27.3%

Economics 9.1% Over 71 9.1%

Legal 9.1%

20
CORPORATE GOVERNANCE

Independent Directors
Our independent directors perform their duties with diligence and loyalty and provide
advice for the operation of the Board and the business development of the Company by
making use of their professional knowledge and rich experience of their respective field
and experience, effectively protecting the interests of our shareholders as a whole.

For details of the attendance by independent directors at the Board meetings, please
refer to our annual report for 2022.

Participation of Independent Directors in Corporate Governance

Performing duties in strict accordance with relevant Chinese and overseas laws, regulations and the
Articles of Association, carefully reviewing resolutions and relevant documents submitted by the
Company, actively participating in shareholders’ meetings, board meetings and committee meetings,
providing independent and objective advice, protecting legal rights of shareholders as a whole, in
particular minority shareholders at large

Reviewing the Company's regular reports, overseeing the Company's information disclosure in
accordance with relevant laws, regulations and the Company's information disclosure management
system to ensure true, accurate and complete information disclosure

Actively understanding the Company's state of operations, financial performance and progress
of major projects through teleconferences, engagements with senior management and
correspondences

Closely monitoring relevant updates from regulatory authorities and feedback from investors,
media and the public, promoting sufficient concern and understanding by management of
stakeholder concerns, in particular connected transaction limits and investment budget planning

Supervisors and Supervisory Committee


The term of office of our supervisors is three years, renewable at the end of the term
upon re-election and re-appointment. No supervisor may concurrently hold the position
In 2022, the Company held five
Supervisory Committee meetings of a director, President, Vice President or Chief Financial Officer. In accordance with the
and considered resolutions Company Law and the Articles of Association, the supervisors shall attend meetings of
r e l a t i n g t o t h e C o m p a n y 's
the Supervisory Committee and sit in on Board meetings on a non-voting basis. They
financial report, ESG report, profit
allocation budget, CEO operating shall report to the Shareholders’ meeting, submit the Supervisory Committee’s work
results evaluation, election reports and relevant proposals. As at the end of 2022, the Company’s Supervisory
supervisory committee chairman, Committee consisted of 8 supervisors, 4 of which were employee representatives.
passing 15 resolutions, all of which
were in co mp l ian c e w it h t h e The Supervisory Committee is accountable to the Shareholders’ meeting. The Supervisory
provisions of the Company Law
of the People’s Republic of China Committee formulated the Organization and Rules of Procedures for the Supervisory
and the Articles of Association Committee and the Rules on Supervisors’ Performance of Duties, setting out the manner,
and were legal and valid. content, requirement and standard of appraisal with respect to performance of duties
by the supervisors. All supervisors are urged to monitor the Company’s finances and
the legality and compliance of the directors and senior management of the Company in
performing their duties with due diligence.

Executive Body
The Company’s executive body is headed by the President and is composed of
Senior Vice Presidents, Vice Presidents, a CFO and Secretary to the Board, etc. They
are appointed by and held accountable to the Board of Directors. They implement
Board resolutions and organize the day-to-day production and business activities of
the Company in accordance with the Company Law and the Articles of Association of
PetroChina on the strength of authorization by the Board.
21
PetroChina Company Limited
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

GOVERNANCE The Company emphasizes intensification, specialization and integration and has
established a management system incorporating structural, organizational, operational,
institutional and supervisory aspects, where responsibility is commensurate with
authority and is scientifically sound, lean, efficient and vibrant, to strengthen the
restrictions on and the supervision of the exercise of power. The Company aims at
achieving clear-cut control objectives, effective integration of resources and optimal
efficiency and effectiveness in order to promote the improvement of our environmental,
social and corporate governance performance and to achieve sustainable growth.

CASE STUDY

Sustaining In-depth Reform to Promote Modernization of the Company’s Governance System and Capabilities

Starting from 2020, the Company established a leadership panel on comprehensive in-depth reform for sustained in-depth
reform of the Company. A series of progress has been made in reforming important areas and key sections.

We published the Guiding Opinion on Modernization of Corporate Governance System and Capabilities,
Improving and specifying the Company’s optimization strategy and governance principles, as well as specific missions
reforming top-level for establishing structural, organizational, operational, institutional and supervisory systems, thus
design formulating the top-level design of our corporate governance, significantly enhancing governance
effectiveness.

We bolstered the functions of the Company’s headquarters as the center of our strategy, decision-
Accelerating the making and management, and continued to optimize the division of functional roles, organization
structure and personnel assignment, thus making great strides in the establishment of a value-based
establishment of
headquarters. Further, we optimized and adjusted our overseas business system and made significant
a new high-efficiency progress in the internationalization of our headquarters, contributing greatly to quality development
organization model of our overseas businesses. We continued to focus on strategic transformation of the Company and
improve our new energy and new materials organizational structure.

We comprehensively strengthened marketing efforts, optimized production and operation coordination


New pace of
system and established a smart operation center, thus facilitating our transformation from a
development with “production model” to a “business management model”. We fully implemented term limits and contract
marketization reforms and management system for management staff, allowing us to reassign bottom-ranked management and
operation system terminate employment of incompetent staff, thus continuously improving our marketized employment
system, as well as our market-oriented, efficiency-centered production business operation system and
transformation
quality efficiency incentive mechanism.

We implemented the Guiding Opinion on Independent Strengthening of High-level Technology and


Enhancing Technological Innovation, which determined our specific reform targets and path for
Horizontal and vertical technology system and mechanism reform. We revised the Company plan for rewarded scientific
technology, increasing bonus for significant technology contribution, thus improving the incentives for
reform of technology
technology personnel innovation and creativity. We devoted efforts to develop world-class research
system and mechanism institutes and world class innovative enterprises. With the establishment of several research institutes
focused on new energy and new materials, we have accomplished landmark achievements in major
technological barriers, thus expediting our digital transformation and smart development.

22
CORPORATE GOVERNANCE

Compliance Management
The Company incorporates compliance with laws and compliance into the 14th Five-Year
Plan, specifying the concept of compliance with laws and regulations of the “supremacy
of laws, compliance as the priority, honesty and good faith, and safeguarding rights

100 % according to the law”, and sets out ever more rigorous compliance management system
continuously. We have strictly implemented laws and regulations as well as government
regulatory requirements, incorporated compliance requirements into systems
and processes and established comprehensive, operationally effective hierarchical
Compliance training compliance management system, striving to improve a compliance risk control system
coverage rate
covering the whole chain and process and devoting full efforts to develop a compliance
culture with PetroChina characteristics. We actively promote the implementation of
compliance management requirements and responsibilities, and continuously improve
the Company’s operation level in compliance with the law and regulations.

Key Actions in Compliance Management in 2022

Launching the“Year of Strengthening Compliance Management”


initiative, addressing specific operational and business compliance
management issues to fully address and rectify non-compliance
issues and eliminate potential compliance risks

Strengthening and improving our compliance management system


based on seven aspects of compliance system establishment,
responsibility implementation, risk management, business compliance,
supervision and accountability, resource security and culture training

Organizing and formulating department and position compliance


responsibility checklist, compliance review checklist, compliance
risk checklist and procedure control checklist, ensuring compliance
responsibility and enhancing risk control effectiveness

Improving compliance guidelines on focus businesses

Revising and improving the evaluation criteria for legal and compliant
operations with strong enforcement and strengthening compliance as
a guiding value

Organizing a wide-range of compliance training and promotion with


comprehensive coverage

23
PetroChina Company Limited
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

Rules and Regulations System


The Company continues to optimize and improve the rules and regulations system and
build a system of rules and regulations which encompasses all aspects of production,
operations and management and is complete, scientific and standardized and operates
effectively. The Company strictly implements the external regulatory requirements, meets
the requirements for the improvement of management, continuously optimizes and
improves the rules and regulations in the fields of financial funds, projects construction,
material supply, bidding management, safety and environmental protection, quality and
health, etc., and promotes the improvement of the system.

Internal Control and Risk Management System


The Company attaches great importance to the construction and supervision of internal
In 2022, the Company conducted control and risk management systems. The Board of Directors and Audit Committee
1,018 internal audit projects and regularly listen to reports on internal control work, organize the identification and
submitted three reports on the
relevant work to the Board and the assessment of major and significant risks, determine control measures and formulate
Audit Committee. solutions, and ensure that the Company’s internal control system is complete and
effective. In 2022, the Company revised our risk management plan and procedures
management plan, optimized our internal control system design, published our
corporate internal control management manual and guidelines, adding guidance and
principles to our revised corporate handbook and ensured that our internal control
system design has been updated for compliance and effectiveness. The Company
maintains an issue-based approach, with in-depth analysis of causes and enhanced risk
alerts. In 2022, the Company passed an external audit for 17 consecutive years.

Integrity Risk Prevention


The Company places great emphasis on integrity risk prevention. We comply strictly with
the laws and regulations of the country in which our business is conducted as well as
international conventions to promote legal operations and compliance management.

100% We treat our business partners, customers, suppliers, contractors and counterparts with
integrity, respect and equality, oppose any form of commercial bribery and require our
business partners to follow the requirements pertaining to the Company’s integrity risk
prevention policies.
Coverage of integrity risk prevention
training for staff (including members The Company has formulated and implemented rules and regulations such as the
of the Board and all employees) Anti-commercial Bribery Manual, the Integrity and Compliance Manual, the Employees
Note: Employees include Manual, the Corporate Culture Manual, the Punishment Regulations for Management’s
dispatched workers
Violations and Non-compliance, Compliance Management Measures, Self-Discipline
Convention Applicable to Bidding and Tender Activities, Supplier Management Measures,
etc., to regulate the behavior of employees and the Company.

24
CORPORATE GOVERNANCE

Main Measures of the Company’s Integrity Risk Prevention

Strengthening standardized operations

Strictly complying with the rules of procedure for the Shareholders’ meeting, the Board of Directors and its Special
Committees, the Supervisory Committee and the management, etc., with all decisions such as major project
arrangement and large-amount capital operations discussed collectively

Strengthening the development of systems such as compliance management and prevention and control of
integrity risks, strengthening real-time supervision in focus areas and key sections to achieve full supervision
coverage

Strictly implementing systems and regulations relating to procurement of materials, management of contracts,
tendering and bidding, use of expenditure and internal control of funding and a full supervision mechanism from
preliminary prevention, work supervision to post evaluation

Strengthening supervision and inspection

Strengthening regulation and supervision of management in the exercise of authority, establishing a unified
mechanism, organizing regular coordination meetings, in order to establish a system based on coordination,
information sharing and joint efforts

Strengthening the supervision of managers, especially the “top leaders” at all levels; requiring all employees to sign
a pledge to be clean professionals; formulating and implementing articles on supervision

Strengthening compliance management

Establishing robust compliance control procedures for the review, approval, implementation, audit, supervision
and training of business partners and carefully selecting suppliers, contractors, agents, distributors and business
partners with complete qualifications and sound reputation

Carrying out due diligence on business partners, fully understanding and continuously paying attention to and
evaluating the integrity and compliance performance of business partners, closely monitoring changes in their
financial and credit status and regularly evaluating their ability to perform obligations

Promoting compliance concepts, requirements and culture to business partners through signing compliance
agreements and providing compliance warrantees

Strengthening education and training

Providing education and training for Directors and all employees on integrity risk prevention laws and regulations

Conducting integrity education activities at different positions to establish a long-term integrity education system

Providing business partners with various forms of compliance and anti-commercial bribery training

25
PetroChina Company Limited
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

Upholding Business Ethics


The Company abides by business ethics and market rules, and adheres to the principle
of honesty and credibility, equal consultation, mutual benefit and common development,
and promotes transactions with high business integrity and transparency, in order to
maintain fair and impartial competition in our business activities. We strictly comply with
the Anti-monopoly Law of the People’s Republic of China, the Anti-unfair Competition
Law of the People’s Republic of China, the Supervision Law of the People’s Republic of
China, and relevant laws and regulations of the country where we do business, as well
as the UN Guiding Principles on Business and Human Rights and other international
principles and initiatives.

Code of professional ethics formulated by the Company


Code of Professional Ethics for Senior Management Personnel of PetroChina Company
Limited
Code of Professional Ethics for Employees of PetroChina Company Limited
For more information, please refer to the Company website.

SUPPLY CHAIN The Company maintains global sourcing, open cooperation, resource sharing, mutual
benefit and win-win relationships as the basis of our supplier management philosophy
MANAGEMENT and adheres to the principles of compliance, quality, efficiency and effectiveness,
implementing full cycle closed loop management from access to exit. We formulate and
constantly improve the Regulations on the Management of Engineering Construction
Projects, the Regulations on the Management of Material Supply, the Regulations
on the Management of Tendering and other relevant regulations, as well as a series
of implementation measures and standards, so as to strengthen the compliance
management of suppliers. We practice responsible procurement and incorporate green
and low-carbon development into our entire materials supply chain management, fully
identify and control the possible environmental and social risks in the supply chain, such
as safety and health, labor rights, environmental protection and business ethics and
constantly improve the quality of suppliers.

Global
Compliance
sourcing

Open
Quality
Philosophy

Principles

cooperation

Resource Supply Chain Efficiency


sharing Management

Mutual benefit and


Effectiveness
win-win
relationships

26
CORPORATE GOVERNANCE

Major Supplier Management Measures


Supplier access

In 2022, we organized random We provide guidance to our suppliers on strengthening lawful and ethical business operation,
quality inspection of 814 batches of observing business ethics and corporate social responsibility. We require suppliers to comply
materials procured and strictly dealt with the relevant policies and regulations on anti-commercial bribery, conduct necessary due
with non-conforming suppliers and diligence on suppliers and include compliance performance in the contract as a prerequisite for
products. access
We have formulated over 80 supplier access basic conditions, requiring all suppliers to comply
We review and monitor our suppliers with our unified quality, environmental, health and safety standards, obtain requisite nationally
for their business ethics and compliant recognized quality management system accreditations, occupational health and safety
operations practices as well as management accreditations and environmental management system accreditations, so as to
performance records, and incorporate continuously improve product and service reliability as well as environmental sustainability
the relevant indicators into our supplier
We give priority to energy-saving and environmentally friendly products, expressly specifying
evaluation system. During the year, we
completed 226,595 orders with 100% priority in procurements to energy-saving, environmentally friendly and low-carbon materials,
dynamic quantitative assessment of encourage the use of environmentally friendly packaging, promote green procurement and give
our suppliers. extra bonus points in assessment for the same
Suppliers are required to protect labor rights and satisfy development needs
We organize on-board training on business ethics, prevention and control of integrity risks and
quality, health, safety and environment (QHSE) for all new suppliers and promote the Company’s
operation and management concepts
Supply Chain Management We require suppliers to sign a letter of commitment for access, covering 100% of our suppliers

21,890 Supplier supervision

We have optimized our whole-process management of suppliers and formulated a routine


Number of materials suppliers
management and supervision mechanism for suppliers to strengthen identification and
prevention of environmental and social risks and to promote the performance improvement of

2,185 suppliers

We have conducted reviews on business ethics and compliant operations practices as well as
Number of tier 1 manufacturers performance records for suppliers and incorporated the relevant indicators into our supplier
evaluation system. We continue to increase enforcement of penalties on suppliers who fail to

98.03% comply with laws and regulations

In 2022, we completed 226,595 orders with 100% dynamic quantitative evaluation of our suppliers
Percentage of tier 1
manufacturers certified by the
Quality Management System Supplier exit management
(ISO9001)
We have revised the administrative measures for dishonest behavior of bidders and regularly
published information of offenders on the column for dishonest behavior on the bidding and

94.14 % tender website of the Company

For issues related to the quality, compliance, integrity and corruption of our suppliers, the
Percentage of tier 1 supplier may be subject to four types of exit treatment from suspension of product trading right,
manufacturers certified by the
suspension of trading right of supplier, to revocation of product access or revocation of supplier
Environmental Management
access depending on severity
System (ISO14001)

93.14 %
Supplier communication

We ensure unobstructed and effective communication mechanism with suppliers and


Percentage of tier 1 understand supplier concerns and claims through various channels
manufacturers certified by the
In 2022, we continued to strengthen strategic procurement relationship with 18 domestic and
Occupational Health and Safety
international suppliers, including China Baowu and Siemens, expanded the cooperation areas and
Management System (ISO45001)
levels with suppliers, carried out active exchanges in various aspects such as green environmental
protection and sustainable development and opened more avenues for potential cooperation
Note: Data only includes suppliers
involved in domestic business of the We pay attention to the health, safety, environmental protection and compliance operations of
Company and does not include those suppliers and communicated with suppliers in a timely manner, enhancing the synergy level of
involved in our international business the supply chain

27
PetroChina Company Limited
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

COMMUNICATING AND
INTERACTING WITH STAKEHOLDERS
We are dedicated to enhancing the quality and profitability of our development to maximize returns to our shareholders
and value for our stakeholders, and to achieve our common goal of win-win cooperation and harmonious development.

150+ A
Conducted over 150 interactions with Received "A" rating in information
institutional investors and ESG rating agencies disclosure by SSE for 8 consecutive years

Communication aspect Methods and channels

Improving management systems for the disclosure of information

Establishing a working system of regular and extraordinary reports


Quality information disclosure

Actively participating in major international conferences and forums, where


we delivered addresses to share PetroChina's experiences and professional
insights

Regularly engaging with investors and media through shareholders’


meetings, media sessions, investor hotline, company website, new media
platform, tele-conference, email and fax

Actively participating in consultations, feedback and opinion on regulatory


authority policies

Enhancing communication Holding discussions with ESG investment and ratings agencies

through various channels Listening to consumer feedback and opinion through Open to Public Day,
Gas Station Open Day, questionnaires and customer service hotlines, etc.

Communicating with employees through workers’ congress, labor unions


at all levels, various training activities, feedback mailbox and other channels
so as to understand employees’ appeals

Participating in exchange and cooperation with industry organizations such


as OGCI and the China Oil and Gas Methane Alliance

28
CORPORATE GOVERNANCE

CASE STUDY

Enhancing Engagement to Jointly Tackle Climate Change

In response to the increasing concern from our stakeholders on tackling climate change and promoting
energy transformation, the Company actively engaged with institutional investors and international
organizations, briefing them about the Company's work and progress in enhancing ESG management and
participation in climate action.

In 2022, the Company engaged in active and effective exchange with the CA100+ investor group (including
10 institutions such as Harvest Fund Management) on energy transition paths, carbon emissions control,
new energy and new business developments, CCS/CCUS and hydrogen fuel development.

Progress made in 2022

Published quarterly, interim and annual financial reports

Published ESG report

Published 160 announcements on our website (please refer to the Company website)

Received "A" rating in information disclosure by SSE for 8 consecutive years

Mr. Dai Houliang, chairman of our Board, was invited to attend and speak at the 2022 BRICS business forum panel
discussion themed "Accelerate green transition and promote global sustainable development", the CNPC International
Cooperation Forum at the China International Import Expo where he delivered a speech on the feature of "Expanding
open cooperation, jointly tackle challenges, protecting energy supply safety in a green and low-carbon transformation",
the International High-level Forum on Green and Low-carbon Energy Revolution where he shared our practical experience
with green and low-carbon transformation

Participation in HKEX policy consultation

Communicated with MSCI

Actively participated in ESG-related work of the China Association of Public Companies (CAPCO), with Mr. Wang Hua,
our financial controller and secretary to the Board elected as deputy head of the CAPCO ESG committee, where he
shared the experiences of the Company at the inaugural meeting. Our case study "Implementing Green and Low-
Carbon Development - Contributing to the Carbon Peak and Carbon Neutrality Goals" was selected by CAPCO as the
best ESG practice case

Participated in the ESG initiation meeting organized by the China Petroleum and Chemical Industry Federation

Participated in the China Social Responsibility 100 Forum series of events

Active and effective engagement with the Climate Action 100+ (“CA100+”) investors’ group on issues such as energy
transformation paths and carbon emissions control

Effectively communicated with our shareholders

Organized PetroChina Open Day for the fifth consecutive year

29
PetroChina Company Limited
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

Stakeholders Expectations Communication approach

Providing stable energy supply


Promoting harmonious economic and Contributing company experience
social development Conducting strategic cooperation with relevant
Taking on leadership role in terms of departments
Governments brand and technology Attending seminars and forums
Paying taxes according to law

Fulfilling obligations on statutory information


disclosure
Standardizing corporate governance
Organizing non-deal roadshows and other
Ensuring stable business growth
communication activities
Shareholders Promoting sustainable development
Issuing regular reports and organizing results
announcement conferences and investors conferences

Electing employee representative to join the


Supervisory Committee
Guaranteeing basic rights Establishing labor unions at all levels
Providing career development Convening employee representatives’ meetings
Improving remuneration and welfare and making reports
Employees
Organizing employee training programs
Setting up a complaints and feedback system

Providing safe, environmentally friendly Carrying out activities to protect consumers’


and high quality products interests

Improving the quality of services on a Publicizing commitment to quality services


continuous basis Providing 956100 hotline services
Customers
Operating with integrity Conducting customer satisfaction surveys

Holding tender meetings


Holding large cross-border business negotiations
and technical exchange meetings
Using electronic trading platforms
Conducting fair and transparent
Sharing managerial practices and technical
procurement
standards
Pursuing win-win cooperation
Business partners Conducting contract negotiations and routine
meetings
Conducting training for business partners
Holding ordinary business meetings

Improving sustainable development


management
Contributing company experience
Taking on social responsibilities such as
Participating in NGO activities
poverty alleviation and environmental
protection Promoting international communication
NGOs
Actively tackling climate change

Establishing a comprehensive community


Promoting employment growth engagement mechanism and actively holding
Protecting community environment dialogues with local communities

Promoting community economic Paying attention to community feedback and


development improving social effectiveness
Communities Respecting community culture and Conducting publicity and education
traditions Fulfilling notification obligations and increasing
information disclosure

30
CORPORATE GOVERNANCE

Key actions

Participating in policy discussions organized by the


Complying with the applicable laws and regulations in
government on climate change, energy conservation and
the jurisdictions where we operate and operating with
emission reduction
integrity and compliance
Promoting local employment and nurturing local talents
Ensuring stable oil and gas supplies
Paying taxes according to law

Ensuring equal treatment of shareholders and valuing the


Operating in a responsible manner to maintain a good opinions of minority shareholders and providing feedback
reputation to the Company’s management in a timely manner
Holding general meetings Strengthening management over investor relations and
communicating with minority shareholders in various ways

Enhancing employee training and skills development Promoting local employment in overseas operations
Organizing vocational skill contests Providing a career development platform for employees
Conducting occupational health checks Protecting employee safety

Enhancing quality management and properly handling Increasing the supply of clean fuel, such as natural gas, high-
customer complaints standard gasoline, geothermal heating and hydrogen fuel
Protecting customer privacy Prioritizing the supply of oil for disaster relief and
Providing quality services and improving product and agricultural production actively
service quality Organizing PetroChina Open Day activity

Strengthening centralized procurement management to


provide suppliers with equal competition opportunities
Enhancing communication and coordination with Opening the investment field
contractors and strengthening the QHSE management Holding high-level forums
of contractors by creating a safe and healthy working
environment

Paying attention to concerns of the public through various Participating in a wide range of forums and conferences
forms of communication Attending the 27th Conference of the Parties of the United
Playing an active role in participating in and supporting Nations Framework Convention on Climate Change Side
international environment protection standardization Event

Managing impact on communities and conducting social and


environmental impact assessments Supplying clean energy such as natural gas to remote
Fulfilling social responsibility and investing in community regions
welfare Inspiring employees to provide voluntary services
Participating in disaster relief and reconstruction and providing Expanding local procurement
financial support for education and poverty alleviation Providing job opportunities and training for the local
Supporting and driving the economic and social development of community
areas where businesses are located with large projects construction

31
PetroChina Company Limited
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

TECHNOLOGICAL Innovation is our primary strategy and the basis for our entire development vision.
Our goal is to deepen technological and digitalization innovation through optimizing
INNOVATION allocation of innovation resources, building a dynamic and open innovation ecology,

AND DIGITAL
enhancing overall efficiency of the innovation chain, strengthening technological
innovation to support leadership capabilities. We expedite deep integration of

EMPOWERMENT digital technology and operations in order to achieve steady progress in digital
transformation and smart development.

Technological Innovation
Technological innovation drives the transformation of our production methods
towards a green and low-carbon future, addressing global issues such as energy
supply, carbon emissions reduction and improving efficiency. We continuously
strengthen planning and top-down design as well as our efforts in overcoming key
technology barriers, optimizing our technological innovation management system,
building an innovative technology enterprise and innovation platform and facilitating
the development of the centers for generating original technology.

RMB

28.718 0.9 % 27,913


billion

R&D expenditure Ratio of the annual R&D expenditure bears to R&D personnel
for the year the operating revenue of the Company

32
CORPORATE GOVERNANCE

Technological Innovation Initiatives and Progress

Technological Innovation Key initiatives Major progress

3,700 Formulating our Technology and Innovation to Support Carbon


Emission Peak and Carbon Neutrality Implementation Plan,
3,700 patents applied,
3,584 invention ones focusing on four main carbon reduction avenues of energy
Enhancing
conservation and enhancing efficiency in operations, clean
top-level design
energy substitution, engineering carbon sequestration and

96.9 %
structural optimization to establish a low carbon and zero
carbon technology system
Percentage of invention
patents applied

1,598
Accomplishing intermediate results with establishing the
original technology generation centers
Expediting
1,598 patents granted, establishment of Establishing the Wisdom Pool Research Institute in Japan
1,470 invention ones research institutes and
Expediting the establishment and operation of our new
innovation platforms
materials research institute in Shanghai and new energy

92.0
research institute in Shenzhen
%
Percentage of invention
patents granted
Expediting technological breakthrough and application

3
demonstration in focus areas such as hydrogen fuel, energy
storage, geothermal power, coal associated resources, CCS/
Facilitating green and CCUS, energy conservation and environmental protection
Received one Silver Award low-carbon and new
and two Outstanding energy technological Accomplishing major technological progress in CCUS full
Awards at the 23rd China development whole industrial chain key technology, geothermal high
Patent Awards efficiency integrated utilization key technology, wide
temperature tolerance high efficiency lithium-titanate
battery materials and battery manufacturing technology

5
Led the formulation and
revision of five international
Connecting with top R&D institutes in China and overseas to
standards which were Strengthening attract top technology talents
officially published innovative talent
workforce Strengthening cooperation with higher education schools to
nurture young and innovative talents

13
Accomplished seven
landmark technology Building a comprehensive IP management and support
achievements and six major service organization through the establishment of
technological progress Valuing IP PetroChina IP management office and three IP support
protection and centers
management Discussing and formulating the Company’s IP Development
Plan (2023-2030), IP Work Evaluation Plan and Patent Award
Evaluation Plan

33
PetroChina Company Limited
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

Digital Empowerment
Digital transformation is a major strategic initiative in the Company's drive towards
modernization of the Company's governance system and capabilities. We strongly
promote digitalization, networking and smart development, utilizing digital technology
such as cloud computing, IoT, 5G, big data and AI to integrate digital technology
into corporate governance and business development under key directions of
smart technology and product innovation, in order to drive enterprise digitalization
transformation and smart development as a part of our efforts to strongly promote
corporate digitalization and intelligentization.

PetroChina adheres to the general principles of "value orientation, strategic leadership,


innovation drive and platform support", focuses on the aspects of "business
development, management reform and technology empowerment", conducts business
model restructuring, management model reform and business model innovation,
facilitates the building of smart oil and gas fields, smart refinery and smart sales and
develops user-based, data-based and innovation-driven new production methods, new
business models, new industrial ecology, so as to achieve industrial transformation and
upgrade as well as value growth.

34
CORPORATE GOVERNANCE

Digital Transformation and Intelligent Development

Target Progress

Collaborative optimization of Leveraging our PetroChina Intelligent Operation Command


oil and gas business chains
Center to promote the unified scheduling, optimized
With the goal of maximizing the operation and process monitoring of production operations
overall benefits of the upstream and build early warning models, thus improving emergency
and downstream business chains response capabilities
and the value of shareholders,
Developing software and hardware with expanded capacity
carrying out optimal allocation of
and improved functionality based on cognitive computing
resources and overall planning of
platform, in order to build a unified, open and expandable
operating results and linkage of
AI platform for the Company
emergency response

Optimizing digital transformation top-down design for our


oil and natural gas and new energy, refining, chemicals and
new materials, sales, natural gas sales business segments,
organizing unified scenario models, optimizing pilot unit
implementation plans which expedite standardization,
Business Transformation and upgrading regularization and modularization, in order to build
development of main businesses implementation models that can be replicated, extended,
operated and used as reference
Integrating the Internet, big data,
Smart oil and gas fields: Building an oil and gas direct
artificial intelligence and other
management model based on "production command center
technologies with the Company’s
+ unattended stations", facilitating integrated management
business, and focusing on the
of focus areas such as production sites and operation sites
construction of smart oil and gas
fields, smart refining and sales Smart refining: Preliminarily constructing a comprehensive
in order to help the industrial 3D digitalized design, delivery and digital twin integrated
transformation and upgrade factory for the Shaanxi Yulin ethane-to-ethylene smart
factory, which significantly enhancing labor productivity and
reducing energy consumption
Smart sales: Actively building a customer-oriented full
membership system and developing extensive digitalized
integrated marketing

Further applying the big data analysis platform project on


financial and accounting supervision as well as auditing
Promoting the improvement
of decision support, operation Basically establishing our global shared services system,
management, collaborative continuing to promote the application of shared services
office, collaborative R&D platforms in areas such as finance and human resources, in
and shared services through order to facilitate centralized, streamlined and standardized
Management digitalization, and pushing processing of similar operations, in turn driving our
reform forward the modernization and transformation into high quality management
transformation of the corporate
Continuously developing electronic sales services and optimizing
governance system and
online business transactions and service platform functions,
governance capabilities
so as to effectively enhance precision marketing capabilities,
management standards and scientific decision-making

Increasing application of our cloud technology platform in


Creating a first-class industrial order to continuously improve PetroChina’s cloud resource
Internet system in the energy computation and storage capacities based on PetroChina’s
and chemical fields to empower four major data centers
Technology digital transformation with
empowerment technologies Further optimizing our data management system and
continuing to build our data governance and data lake systems

35
CLIMATE CHANGE
AND ENERGY TRANSITION
Climate change is a global issue for all humanity and requires the combined efforts and response of the
whole world. China has proposed the vision of building a human community with a shared future and
set out clear carbon emission peak and carbon neutrality goals, requiring energy industries to accelerate
their transformation. PetroChina firmly implements China’s policies on carbon emission peak and carbon
neutrality, actively participates in global climate governance, promotes the transition to a green and low
carbon model on a strategic level in the Company’s overall development, vigorously develops clean, low-
carbon, safe and highly-effective energy sources, continuously enhances carbon emission management
and control, and strives to play an integral role in the state’s efforts to achieve carbon emission peak and
carbon neutrality goals and to safeguard energy security.

The UN Sustainable Developmen Goals


PetroChina Company Limited
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

RESPONSE We agree with the temperature goal set out in the Paris Agreement and strive to
firmly implement the goals and action plans proposed by the Chinese government to
TO CLIMATE achieve carbon emission peak and carbon neutrality, and by leveraging our own energy

CHANGE
resources, we intend to carry out the carbon emission peak action plans systematically,
one step at a time. We have continued to improve our governance mechanism for
addressing climate change, incorporating it into our overall development strategy. We
have also improved our risk management procedures and its implementation plans and
collaborated with other institutions on climate change issues to actively and steadily
contribute to the carbon emission peak and carbon neutrality goals.
We have supported and
initiated the following plans
and initiatives related to
climate change
Paris Agreement
Climate Governance
China's National Program for
Addressing Climate Change The Board attaches great importance to climate change-related risks and opportunities.
China's Politics and Actions for We pay close attention to policies, laws, technology, and market changes related to the
Addressing Climate Change global and China’s transition to a low-carbon economy. In our annual policy research,
China Technolog y Strategic we take into consideration the impact of climate risks and the low-carbon economic
Alliance for Carbon Dioxide
transition policy to identify and assess the real challenges and potential impact of
Capture, Utilization and Storage
(CTSA-CCUS) climate change on our Company. Our Company also incorporates green and low-carbon

Oil and Gas Climate Initiative


initiatives into our overall development strategy and established a Leading Group on
(OGCI) Carbon Peak and Carbon Neutrality. Through monthly meetings, we study, deploy,
Carbon Peak and Carbon Neutrality and implement action plans to support these initiatives, continuously strengthen the
Declaration of China's Petroleum management of climate-related risks, improve our carbon emission management and
and Chemical Industry control system, develop low-carbon industries, improve clean energy supply, create
China Oil and Gas Methane effective capacity building programs for the management team and skills training
Alliance
programs for all employees, and actively participate in the cooperation across the global
oil and gas industry in tackling climate change.

38
CLIMATE CHANGE AND ENERGY TRANSITION

Our Company’s Climate Governance Process

Organization Responsibilities

Formulating and reviewing our Company's green and low-carbon development


Board of
strategy, major action plans, risk management policies, and annual budgets, as well
Directors
as supervising our Company's achievement of carbon emission reduction goals

Reviewing reports and recommendations submitted by specialized management


departments and submitting opinions and suggestions on strategies, planning and
Management management to the Board of Directors

Implementing our Company's green and low-carbon development strategies, paths


and action plans proposed by the Board of Directors

Strategic Formulating policies and carrying out studies on green and low-carbon development,
planning and analyzing climate risks and opportunities, as well as providing opinions and suggestions to
low carbon our Company's management based on our Company's low-carbon management status
management Implementing our Company's management goals and action plans related to low-
department carbon management

Implementing the low-carbon development plans, tracking and monitoring


Branches
the achievement of the objectives of the entity in accordance with the overall
(Subsidiaries)
deployment and target decomposition of our Company

Key Actions Taken by the Board and the Management to Govern Climate Risks

Incorporated green and low-carbon initiatives into our Company's overall development
strategy

Established a Leading Group on Carbon Peak and Carbon Neutrality and a Leading Group
on New Energy and New Materials Business Development, which are responsible for
convening monthly meetings to study, deploy, and implement relevant action plans

Incorporated indicators for energy consumption, greenhouse gas ("GHG") emissions etc.
into the annual performance evaluation of our Company's headquarters and branches
(subsidiaries), and embedded response to climate change as a mandatory module in the
training program of Senior Management members

Established the Wisdom Pool Research Institute in Japan, accelerated the building and
operation of the Research Institute for New Energies in Shenzhen and the Research
Institute for New Materials in Shanghai, and conducted more research on green and low-
carbon strategies and technologies

Promoted the standardized management of carbon assets and the development of carbon
asset projects

39
PetroChina Company Limited
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

Strategic Response
Incorporating green and low-carbon initiatives into its overall development strategy, our Company established a three-
step path to energy transition, which consists of the "clean energy substitution, strategic succession and green transition"
stages. We incorporated measures to transition to green and low-carbon energy, energy conservation and carbon reduction
in our overall 14th Five-Year Plan and issued Green and Low-carbon Development Action Plan 3.0 to further detail the
implementation methodologies and measures for achieving carbon emission peak and carbon neutrality.

We have systematically identified major climate risks that have an impact on our Company’s strategies in terms of reputation,
market, technology, operation, policies and regulations, and physical factors, and formulated corresponding countermeasures
to enhance our ability to address potential climate risks and opportunities at the strategic level.

Major Climate Risks Identified by the Company and our Corresponding Countermeasures

Risks Factors Measures

Having a low-carbon footprint helps energy companies Actively and steadily transitioning into a green and low-
build their reputation and is a major concern of carbon company
stakeholders. If our Company fails to meet its low-
Reputation Improving the disclosure and transparency of
carbon development goals or fails to ideally meet such
information related to climate change
goals using the expected routes and measures, our
reputation and image may be adversely impacted Facilitating all-round communication and exchange

Vigorously developing clean energy sources, promoting


Public attention on climate change may drive market
high-quality and sustainable development of our natural
preference for low-carbon products and services,
gas business and promoting the transformation and
thereby affecting demand for fossil fuels
Market upgrading of refining companies
The rapid development of alternative energy
Taking into account climate-related factors in our
sources, new energies and new products may put
investment decisions and increasing investment in new
competitive pressure on our Company
energies and alternative energies

Increasing investment in technological innovation, and


vigorously developing low-carbon and energy-saving
Low-carbon transition will increase our Company’s technologies
Technology
cost of technological innovation Establishing research institutes that focus on the
technological research of new energies and new
materials

Actively promoting clean energy substitution in our


production process, and accelerating our Company’s
The carbon emission policy may affect our transition to green and low-carbon energy
Operation
Company’s cost expenditure and profits Strengthening the management of carbon assets and
actively participating in the construction of the carbon
emission market

Paying close attention to the changes in policies and


The Chinese government will impose stricter regulations related to carbon trading
environmental and safety regulations in the
Strictly complying with the relevant laws and regulations,
Policies and future, and mandate higher standards for refined
and actively participating in standard setting
regulations oil products. Compliance with the new regulations
and standards will increase our Company’s Improving the management of low-carbon development
compliance cost and the risk control of safety and environmental
protection at our Company

Closely monitoring and regularly updating climate data,


Natural disasters such as typhoons (hurricanes), and issuing timely warnings
storm surges and floods caused by climate change
Improving emergency disaster drills to reduce the impact of
may directly prejudice our Company’s assets
natural disasters on our Company’s production and operation
and business operation, and disruptions to the
Physical factors Strengthening our supply chain management to establish
supply chain may affect our Company indirectly.
a supply chain with better resilience
In particular, natural disasters may damage
corporate assets in coastal areas, and exacerbate Transferring asset risks by insurance, expanding scope of
water shortages in water-scarce areas insurance and transferring natural risks at a reasonable
insurance cost

40
CLIMATE CHANGE AND ENERGY TRANSITION

PetroChina’s Transition Path to Green and Low-Carbon Energy

Clean energy Strategic Green


substitution succession transition
2021-2025 2026-2035 2036-2050

Strive to supply an amount of green and


zero-carbon energy that exceeds the Strive to achieve “near-zero” emissions
self-consumption of fossil fuel by 2035
Objectives

by around 2050
Boost the proportion of new energy
Strive to achieve equal portfolio of Strive to ensure that the proportion of
output to 7% of our Company’s primary
new energies, oil, and natural gas, and the output from new energies and new
energy production mix by 2025
substantially realize the strategic succession industries reaches half of our output as
of thermal energy, power and hydrogen a whole
energy to the oil and gas business

Enhance the development and


utilization of geothermal, solar, wind,
and hydrogen powers and other new
energy sources, and promote the use of
clean energy alternatives in production,
to facilitate the synergistic development
of new energy sources and the oil and
gas industry chain
Actively promote the integration and Promote the synergistic development of
Continue to increase the scale of new
development of natural gas-fired power new energies and new businesses and
energy development and utilization and
generation and new energy power the oil and gas business, and put in place
the strategic succession of oil and gas
generation, to provide clean energy a preliminary strategic succession plan to
resources, and complete the five major
products for the society replace oil and gas resources with clean
Measures

energy platforms of “oil, gas, thermal,


Actively conduct technological research electricity, establish a hydrogen industry
power and hydrogen”
and pilot demonstrations on the hydrogen chain, promote the cleaner use of fossil
fuels and develop other new businesses Direct our business operation towards
supply chain, the clean conversion and
full-scale electrification, implement our
utilization of fossil energy and other energy Promote the mass implementation
strategic succession plan through the
transition technologies, strive to apply CCUS of CCUS and carbon sequestration
construction of the CCS/CCUS industry,
measures to actively explore possibilities to projects to continuously reduce carbon
and develop a circular carbon economy
develop and utilize fossil energy in a clean emissions
manner and at a lower cost
Build synergies and enhance efficiency
by vigorously promoting energy-saving,
carbon reduction, and pollution reduction
measures, gradually replacing the self-
consumption of fossil energy with clean
energy, and enhancing the levels of clean
production and pollution control

Action deployment (“Three major initiatives”, “Ten major projects”)

The green enterprise construction The clean and low-carbon energy The circular carbon economy
leaders initiative contributor initiative pioneer initiative
The energy saving and carbon The “Natural Gas+” clean energy The in-depth electrification project
reduction project development project The CCUS industry chain construction
The methane reduction project The “Hydrogen+” zero carbon fuel project
The ecology construction project upgrading project The zero carbon production and
The green culture project The comprehensive energy supply system operation and reengineering project
reconstruction project
41
PetroChina Company Limited
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

The Green and Low-carbon Development Action Plan 3.0

In 2022, our Company issued the Green and Low-carbon Development Action Plan 3.0, where we proposed
the concept of developing a “circular carbon economy”. We intended to create three innovative projects, namely,
the “Natural Gas+” Clean Energy Development Project, the “Hydrogen+” Zero Carbon Fuel Upgrading Project,
and the CCUS Carbon Negative Industry Chain Construction Project. We also deployed and implemented
three major initiatives, namely, the Green Enterprise Construction Leaders Initiative, the Clean and Low-Carbon
Energy Contributor Initiative, and the Circular Carbon Economy Pioneer Initiative, as well as a total of ten major
projects under such initiatives.

PetroChina’s Development Path Towards a Circular Carbon Economy

At its core, the circular carbon economy consists of four principles, i.e. carbon reduction,
carbon reuse, carbon recycling and carbon removal (collectively, the 4Rs), as proposed
in the G20 Summit in 2020. By continuing to optimize our energy and carbon flows,
PetroChina focuses on implementing reformed measures to reduce carbon emissions
and reutilize carbon as a resource. We are actively exploring new energy sources,
new materials, and new industries with the aim to establish a CCUS industry chain, to
accelerate our transition towards clean energy supply and a scalable carbon industry,
and progress on our path towards a green and low-carbon future.

Carbon
recycling

CO2

Biomass Industry

Hydrogen
generation
CO2
Wind and Transportation
solar
CCUS Service
Energy
delivery
Oil, gas, geothermal,
Oil and gas power, hydrogen
Power
generation
Petrochemical
Carbon
reuse
Geothermal CO2
Construction

Carbon
reduction User end
Carbon
removal

Energy flow Carbon flow Business Measures

42
CLIMATE CHANGE AND ENERGY TRANSITION

Climate Risk Management


Our Company incorporates risks related to climate change into its list of comprehensive
risk management and control measures. Every year, we identify, analyze and assess
climate risks, formulate risk management and control strategies and procedures,
track and report risk events on a regular basis, and adjust risk prevention and control
strategies in a timely manner. We strictly monitor the implementation of climate risk
management and include GHG emissions as part of the framework of the annual
performance evaluation for relevant departments of our Company and responsible
persons from each branch/subsidiary. Their performance obligations are accounted for,
evaluated, and fulfilled each year.

Indicators and Objectives

Indicators Objectives Progress in 2022

Strive to achieve “near-


zero” emissions by
around 2050

Keep the amount of GHG Total GHG emissions


emissions at 169 million was 160 million tCO2e
GHG
emissions tons of carbon dioxide
equivalent (“tCO2e") or
lower in 2022

Domestic GHG
emissions per unit of
oil and gas production
Reduce GHG emission
was 0.24 tCO2e/toe,
GHG intensity
representing a decrease
emission
intensity of 4%

Reduce methane
emission intensity by
50% as compared to Methane emission
2019, to 0.25% in 2025 intensity was 0.40%,
Methane representing a decrease
Reduce methane
emission of 11%
emission intensity by
intensity
20% as compared to
2025, to 0.20% in 2035

43
PetroChina Company Limited
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

CURBING CARBON EMISSIONS


Paying close attention to our carbon emissions and carbon footprint arising from our production and operation, we continued
to enhance our carbon emission management system by implementing the Guiding Opinions on Strengthening Greenhouse
Gas Emission Management and Control, Measures for Management of Carbon Trading, the Management Measures for the
Statistical Assessment of Greenhouse Gas Emissions, and the Management Measures for the Voluntary Greenhouse Gas
Reduction Project, and by establishing the “1+3” carbon emission mechanism of our Company. We also continued to improve
our GHG accounting and inspection system, adopted an assessment model to review our carbon emission controls annually,
strengthened our carbon asset management, actively participated in carbon market transactions, carried out research
and development activities related to CCUS technologies and the implementation of demonstration projects, promoted its
application in business settings, actively planning forestry carbon sequestration, and collaborated with other industries to
reduce carbon emissions, in an effort to contributing to the fight against climate change.

To reduce carbon emission at source, vigorously develop the natural gas business, give full play to the key
Carbon supporting role of natural gas in the transition to the green energies, and continuously increase the scale of the
reduction development and comprehensive utilization of wind power, solar energy, geothermal energy and other non-fossil
Moving Towards Carbon Neutrality

fuel energies

Carbon To continuously improve the utilization rate of carbon, and strengthen the development ideology of CO2 chemical
utilization utilization and industrialization development

To effectively substitute for traditional fossil energy, vigorously promote geothermal and solar energy to replace
Carbon traditional heat for oil and gas production, promote the substitution of coal-fired electricity with clean electricity,
substitution accelerate the production and scaleable application of hydrogen energy, expand the scale of utilization of
“renewable electricity”, and continuously improve our electrification rate

To actively explore and improve technologies and efficient ways to capture and sequestrate carbon, implement
Carbon
carbon dioxide flooding and carbon dioxide sequestration on a large scale, continuously expand the “zero carbon”
storage
and “negative carbon” industries, and enhance the carbon sequestration capacity and scale of the ecosystem

CASE STUDY

Striving to Construct a “Zero-Carbon” Desert Highway


The responsibility of greening and irrigating the shelter belt along both sides of the Taklamakan Desert Highway lies with PetroChina’s
Tarim Oil Field. The long belt of vegetation stretches 436 kilometers; and is equipped with a well station approximately every 5
kilometers to water the entire green belt through drip-irrigation. The well stations and pumps were powered by diesel fuel previously.
In June 2022, 86 photovoltaic generators were newly installed in the Taklamakan
Desert hinterlands. With more than 10,000 solar panels, these generators convert
solar power into an endless supply of electricity used for irrigation, providing a greener
source of water supply to the 436 kilometers of shelter belt. Therefore, with the way
that the shelter belt is irrigated and maintained, we are achieving carbon neutrality.
Based on our calculations, the shelter belt can absorb approximately 20,000 tons
of carbon dioxide annually. The negative carbon emissions can offset the carbon
emissions previously arising from our vehicles, thus providing a new solution for China
to manage its deserts and maintain its desert highways and forging a new path of
“zero-carbon” desert highway construction.

44
CLIMATE CHANGE AND ENERGY TRANSITION

Carbon Emission Management


Our Company implements a dual-control system for managing our total carbon emissions and intensity. The amount and
intensity of carbon emissions associated with each branch/subsidiary are individually recorded. In addition, the energy-
saving, emission reduction, pollution reduction and carbon reduction performances of every branch/subsidiary are reflected
on their performance contracts. In accordance with the national GHG inspection and accounting standards, we set up a
GHG inspection and accounting mechanism and founded the GHG Inspection and Accounting Center; we account for GHG
emission data on a quarterly basis and conduct GHG inspections regularly. We also actively implement methane control
measures to reduce methane emissions. In 2022, our domestic GHG emissions per unit of oil and gas production and our
methane emission intensity recorded a year-on-year decrease of 4% and 11%, respectively.

GHG

160.56 400,900 tons

Total GHG emissions Methane emissions

119.68 6.35 %
Direct GHG emissions (scope 1) Year-on-year decrease of
methane emissions

40.88 0.4 %
Indirect GHG emissions (scope 2)
Methane emission intensity

million tCO2e

11%
0.24
Year-on-year decrease
of methane emission
tCO2e/toe
intensity
Domestic GHG emissions per Methane
unit of oil and gas production

Project for managing Social responsibility


Leak detection and
Conventional flare and controlling methane action plan for managing
repair (LDAR) system
extinguishing project emissions from and controlling methane
construction project
Seven Major operations emissions

Projects for
the Management
and Control of
Methane Emissions
Project for recovering Methane emission
Project for improving oil
methane releases from monitoring and accounting
containment solutions
wellbores system

45
PetroChina Company Limited
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

Carbon Asset Management


Our Company is an active participant in the construction of the Chinese carbon market
and is one of the first ten companies to engage in carbon market transactions in
China. We developed and launched a platform for managing and controlling carbon
assets, strengthened the centralized management of carbon assets, standardized
the compliance control of carbon trading companies, facilitated the standardized
management of carbon assets and the development of carbon asset projects, actively
followed up on and complied with national policies related to voluntary carbon reduction,
and encouraged our branches/subsidiaries and business units to develop carbon
reduction projects on a voluntary basis according to the national policies.

PetroChina's Carbon Asset Management System

PetroChina
Carbon Carbon
disclosure development Branch A
Parties to the agreement

QHSE Department
Branch B

Carbon Carbon
consultation trading
Carbon Asset
Management Branch C Monitoring, reporting
and inspecting
carbon emissions

Trading
Carbon Carbon
inspection finance
Chinese European Other
market market markets

CASE STUDY

CCER Project at the Daqing Oil Field North I-2 Natural Gas Treatment Plant

Pursuant to the Interim Measures for the Administration of Voluntary Greenhouse Gas Emission Reduction Transactions,
voluntary emission reduction transaction projects shall be filed and registered at the competent department of the state,
under the register of voluntary emission reduction transactions of the state. The registered emission reduction activities are
called “China Certified Emission Reduction(s)” (CCER(s)).

The Daqing Oil Field North I-2 Natural Gas Treatment Plant Project meets the requirements under the CCER scheme. The
methodology adopted for this project is coded CM-029-V01, namely, the recovery and utilization of gas from oil wells that
would otherwise be flared or vented. The project was successfully filed and registered with the National Development and
Reform Commission (“NDRC”) on May 12, 2016, and has entered the production phase. At present, we have completed 6
project inspections, observing a total carbon reduction volume of approximately 2.16 million tons.

46
CLIMATE CHANGE AND ENERGY TRANSITION

Carbon Capture, Utilization and Storage (CCUS)


Our Company actively explores technologies and efficient ways to capture and
sequestrate carbon, and continues to step up our efforts to research and promote

1.10+
key technologies related to every component of the CCUS industry chain. As such,
we efficiently enhanced our carbon capture and utilization technologies, facilitated
million tons the implementation of demonstration projects related to CCUS technologies and its
application in business settings, and achieved great results. In 2022, our Company
implemented several CCUS projects in Jilin, Daqing, and other oil fields. The gas injection
Annual CO2 injection of
capacity of these oil fields significantly increased, with over 1.10 million tons of CO2
CCUS projects
injection per year.

CASE STUDY

Developing a Circular Economy and Planning the Construction of


CCUS Industry Chain
Our Company conducts extensive
research on key technologies related Our Company took the initiative to develop a CCS/CCUS industry chain by conducting
to every component of the CCUS extensive research and development on whole-industry-chain technologies and taking
industry chain, and has effectively the lead in the construction of CCUS demonstration projects and the strategic planning
enhanced carbon capture and
utilization technologies: of a CCUS regional industrial center. Having set up the CCUS industry chain, we will be
able to accelerate the provision of cleaner energy and the establishment of a scalable
Energy consumption for carbon
capturing and regeneration carbon industry, facilitate the transition of the industry towards a green and low-carbon
reduced by 20% future, and help achieve the carbon emission peak and carbon neutrality goals.
Carbon dioxide flooding volume
increased by 20% Conducting research on advanced CCUS technologies
Accuracy of calculating We developed technologies and equipment related to the effective capture, transportation, injection,
thermodynamic parameters and storage of carbon dioxide. We deployed new and advanced carbon capture technologies such
reached 90% as the use of organic amine absorbents and solid absorbents, developed technologies for long-range
and large-capacity carbon transportation and storage, data simulation, integrated air monitoring,
and succeeded in capturing, utilizing and storing low concentrations of carbon dioxide. Moreover,
we participated in the global research projects on direct air carbon capture and storage (DACCS),
bioenergy with carbon capture and storage (BECCS), and ocean carbon sequestration. We also
established and perfected a standardized system for CCUS processes.

Making plans to create a CCUS regional industrial center


With the aim to promote a cleaner use of fossil fuel energies and upgrade the industry chain to
reach net-zero emissions, we carried out strategic planning to construct CCUS regional industrial
centers in priority locations such as Songliao, Junggar, Ordos, Tarim, Hainan. We also participated in
the construction planning of OGCI’s global CCUS regional industrial center and explored the regional
CCUS commercialization model.

Applying CCUS technologies to improve recovery rate and build a “near-zero”


emission demonstration zone for the petroleum and petrochemical industry
Leveraging the strengths of the integrated oil field and refinery businesses, we integrated
the resources of different oil and gas fields and refining companies, such as those in
Xinjiang, Changqing, Daqing, Jilin, and the Bohai Economic Rim, and applied carbon capture,
utilisation and storage and enhanced oil recovery (CCUS-EOR) technologies to utilize the
carbon produced and captured by refining companies on oil and gas extraction. We also
increased oil recovery rates through carbon dioxide flooding and built a “near-zero” emission
demonstration zone for the petroleum and petrochemical industry. In 2022, our CCUS project
at Jilin Oil Field had a carbon injection capacity of 800,000 tons, and an annual oil production
capacity of 200,000 tons. At present, an accumulative total of 2.77 million tons of carbon
dioxide has been injected into the oil field under the project, making it the largest carbon
injection in China. The recovery rate of crude oil was increased by more than 25%, which is
the equivalent to the discovery of a new oil field of the same scale.

47
PetroChina Company Limited
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

Forestry Carbon Sequestration


Our Company actively lays out plans to build carbon sequestration forests and carbon
In 2022, two of our branches/ neutral forests, with the aim to achieve carbon neutrality through carbon compensation.
subsidiaries were recognized as We prepared and issued the 14th Five-Year Plan for Green Development, the
National Award in Excellence
in Greening Initiative, and two PetroChina’s Carbon Neutrality Guidebook, and the PetroChina’s Guidebook for Carbon
individuals were recognized as Sequestration Forest Construction. These strategies, together with the construction of
Award of Excellence in Greening to a “zero-carbon” demonstration zone, help us build carbon sequestration forests and
Workers.
carbon neutral forests. We actively participated in the “Tree Planting to Achieve Carbon
Neutrality” campaign and helped reduce carbon emissions through tree planting. In
2022, 10,635 mu of carbon sequestration forests and carbon neutral forests were
planted by our Company.

CASE STUDY

30,804 hectares
Tree Planting to Achieve Carbon Neutrality

On the 44th Arbor Day (March 10, 2022), the “Tree Planting to Achieve Carbon Neutrality”
campaign, initiated by CNPC and jointly hosted with the China Greening Foundation, was
officially launched.
Total area of our Company’s existing
green spaces The campaign took place on the “Tree Planting
Volunteers” website, the fundraising platform of the
China Greening Foundation, to raise funds from
PetroChina’s employees and the public for voluntary

1,327
tree-planting and the construction of carbon
sequestration forests and carbon neutral forests.
hectares The campaign’s goal is to raise RMB 100 million over
a 5-year period to plant 15,000 mu of forest land.

Area of newly added green spaces Our employees actively participated in the
during the year campaign. As of the end of 2022, more than RMB
17.8898 million was donated by our employees,
retired employees, warm-hearted public and
social organization, accounting for 47% of the total

1.562 million
online donations received by the China Greening
Foundation during the year. The planting of the first
3,550 mu of forest land has commenced.

Number of trees planted


during the year

376,000
Total number of tree-planting
volunteers during the year

48
CLIMATE CHANGE AND ENERGY TRANSITION

Strengthening Cooperation on Emission Reduction


Our Company actively advocates for and implements a sustainable development
model characterized by low energy consumption, low pollution, and low emissions.
Together with CNPC, our parent company, we participate extensively in international
collaborations in combating climate change, especially strengthening the collaborations
with OGCI and sharing technologies and experiences with other member companies, to
contribute our efforts to addressing climate change issues and helping the oil and gas
industry transition to a low-carbon future.

We promoted and participated extensively in the work of China Oil and Gas Methane
Alliance. We standardized the Alliance’s workflow, organized and convened annual
technological exchange meetings, invited experts to deliver special reports on methane
management and control technologies, prepared annual reports for the Alliance, and
fostered collaborations between Alliance member enterprises to control methane
emissions. As a result, the influence of the Alliance continues to increase.

Annual OGCI Collaboration Progress

March 2022, Mr. Dai Houliang (Chairman of the Board of our Company) and the CEOs/chairmen
of the remaining OGCI member companies entered into the OGCI Zero Methane Emissions
Initiative, demonstrating their commitment towards achieving zero methane emissions. The
initiative is currently endorsed by 17 signatories and 39 supporters, including enterprises,
institutes, and government departments.

In a joint effort between CNPC and OGCI, an investment fund named OGCI China Climate
Investments was officially launched in Hainan Province in April 2022. It will invest in technologies
and business solutions that may have a significant impact on global GHG emissions in China to
help combat climate change.

Details about PetroChina’s participation in the OGCI and other experiences in fulfilling our social
responsibility obligations are presented under the section headed “Case stories” on CNPC’s
official English website. For more information, please visit CNPC’s English website: http://www.
cnpc.com.cn/en/.

49
PetroChina Company Limited
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

LOW-CARBON TRANSITION
We have adopted the “green and low-carbon” policy as one of the five key strategies of our Company and equally prioritize
our new energies and new businesses and our oil and gas businesses with an aim to help our Company transition to a low-
carbon energy model. Our Company prepared a development plan for our new energies and new businesses, which sets clear
the path of transitioning to a green and low-carbon economy based on carbon emission peak and carbon neutrality principles
and hard constraints. The plan also sets out measures to steady oil supply and increase gas capacity, accelerate the building of
new energy and new business portfolios, coordinate the development of different renewable energy systems (oil, gas, thermal
energy, power, and hydrogen energy), substitute clean energy for fossil fuels, and strive to create a green and low-carbon
future for PetroChina.

Natural Gas Development and Utilization


Natural gas is our Company’s strategic, growing, and value-added business, which plays
Our Objective a key supporting role in the process of energy transition, and is also a bridge for the
transition from fossil energy to clean energy. The vigorous development and utilization
In 2025, the proportion of natural of natural gas are a foundation project that runs through the process of green and low-
gas in our total domestic oil and gas carbon transition and development of our Company. Our Company stands firm on
output reaches
setting natural gas as the strategic focus of our green development, continues to step

55 % up our efforts to explore and develop natural gas, and promotes the exploration and
development of conventional gas and unconventional gases such as tight gas, shale gas
and coalbed methane. In addition, our Company imports natural gas through multiple
channels and speeds up our construction of liquid natural gas (“LNG”) terminals and gas
storage tanks to create a diverse energy supply system.

In 2022, we produced 145.5 billion cubic meters of domestic natural gas, representing
a year-on-year increase of 5.6%, of which the domestic saleable natural gas volume was
126.61 billion cubic meters, representing a year-on-year increase of 5.9%. We increased
imports of pipeline gas and LNG and continuously improved the natural gas marketing
network, so that the gas supply covers 31 provinces (municipalities and autonomous
regions) and the Hong Kong Special Administrative Region. We sold 207.096 billion cubic
meters of natural gas domestically during the year, which contributed to the optimization

52.5 % of China’s energy mix and the construction of a Beautiful China.

Green Power and Improving Energy Mix



3,654 3,675
 3,262
3,045
Proportion of natural gas in PetroChina’s  2,775
total domestic oil and gas output
2,373


2,010
1,890 1,946 2,071
 1,803 1,726
1,680 1,714
1,596
1,519
 1,315
1,227
1,195 8.9
1,106 8.4
7.6 8.1 8.5
 6.9 

66.8 %
5.6 5.8 6.1
5.3 
 

 0
         

Ŗ
Proportion of natural gas in China’s primary energy consumption mix (%)
ŗ
Natural gas consumption in China (100 million cubic meters)
PetroChina’s share in domestic natural PetroChina’s domestic natural gas sales volume (100 million cubic meters)
gas output Note: ①② are estimated data in 2022.

Source: Energy Statistics by CNPC Economics and Technology Research Institute

50
CLIMATE CHANGE AND ENERGY TRANSITION

RMB New Energies and New Businesses


7.67 We take the development of new energies as a new driver for the transition towards
a green and low-carbon future. We have set up a New Energies and New Materials
billion
Business Development Working Group, led by Mr. Dai Houliang, Chairman of the Board.
We have also strengthened the strategic planning for the development of new energies
Investment in new energies and new businesses and the construction of a business management system, and
and new businesses
accelerated the expansion of new energy businesses such as geothermal energy, wind
and solar power, hydrogen energy, and battery charging (swapping) stations. While we
were accelerating the building and operating of the New Materials Research Institute
in Shanghai and the New Energies Research Institute in Shenzhen, we also set up the

252 % Wisdom Pool Research Institute in Japan in 2022 to further provide technical support
for the development of new energies, new materials, and new businesses. In 2022,
PetroChina’s new energy development and utilization capacity reached the equivalent of
8 million tons of standard coal per year.
Year-on-year increase in investment in
new energies and new businesses

Development Progress of New Energies and New Businesses in 2022

Newly added geothermal heating area of 10.06 million square meters, amounting to 25 million square meters in
total, replacing 575,000 tons of standard coal annually

Geothermal The first medium and deep-level geothermal heating project in Beijing commenced construction successfully

Acquired permit to connect 10.20 million kW of clean power grids

Constructed wind and photovoltaic of an installed capacity of more than 1.20 million kW, with an aggregate
installed capacity of more than 1.40 million kW

Construction of the Yumen Oil Field 300 MW Photovoltaic Generation Project was substantially completed

Built our Company’s first self-designed and self-constructed floating photovoltaic power generation project in
Wind and Daqing oil filed with an installed capacity of 18.7 MW
solar
Our first wind power project —— Jilin 150,000 kW wind and photovoltaic project was connected to the grid

Collaborated with State Power Investment Corporation Limited to acquire a 900,000 kW offshore wind power
project in Guangxi

Conducted preliminary studies on 4 hydrogen purification projects, of which, the Sichuan Petrochemical Project
has been completed and put into operation

Lit the first environmentally friendly, hydrogen-powered torch at the Winter Olympic Games, continuing to
supply clean hydrogen energy for the Beijing Winter Olympics and the Paralympic Games, with the accumulative
amount totaling 161 tons

Our high-purity hydrogen capacity increased by 1,500 tons/year, and the total high-purity hydrogen capacity
Hydrogen reached 3,000 tons/year

We constructed more hydrogen refueling stations. In 2022, 23 new hydrogen refueling stations (comprehensive
service stations) were put into operation, we currently have 35 hydrogen refueling stations (comprehensive
service stations) in total

416 battery charging (swapping) stations were installed in 31 provinces (autonomous regions and municipalities)
Charging throughout the country
(swapping)
stations

51
PetroChina Company Limited
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

Beijing-
Geothermal heating demonstration base Tianjin- Yumen Clean transition demonstration base
Hebei

Six New Energies


and New Businesses Jilin
Green low-carbon sustainable Green and coordinated development
Daqing Development Bases
development demonstration base demonstration base
of PetroChina

Green energy industrialization development


Clean power generation base Qinghai Xinjiang
demonstration base

CASE STUDY

Launching of the Daqing Oil Field Xinghuo Floating Photovoltaic Demonstration Project

In July 2022, PetroChina’s first floating photovoltaic


project, the Daqing Oil Field Xinghuo Floating Photovoltaic
Demonstration Project, was connected to the grid and put
into operation. Covering a site of 400,000 square meters
and having an installed capacity of 18.7 MW, the power plant
can generate 27.5 million kWh of electricity per year. When
compared to coal-fired power stations, this new energy
project, which was designed and developed by PetroChina
itself, can reduce carbon emissions by 22,000 tons.

As of the end of 2022, a total of 13.01 million kWh of


electricity has been generated from this project.

Yumen Oil Field Embarked on the Path of Transition to a Green and Low-Carbon Future

As the oldest oil field discovered and put into large-scale development in China, Yumen Oil Field witnessed the history of China’s oil
industry. At present, this ancient oil field is back in operation. Thanks to the development of renewable energy, Yumen Oil Field is
now embarking on the exploration of development of clean energy solutions and transition into a green future.

In 2022, the development of Yumen Oil Field’s new energy business achieved a series of impressive results:
On June 28, the first medium and long-distance hydrogen transmission pipeline in Gansu Province was completed and fully
connected to the grid. The hydrogen transmission pipeline was linked to the hydrogen refueling station at Yumen Refinery, which
was equipped with a hydrogen compression system, loading system, and hydrogen storage facilities, and together formed a
preliminary hydrogen supply chain in Gansu-Ningxia-Xinjiang.

On September 8, the Yumen Oil Field 300 MW Photovoltaic Power Generation Project, the largest photovoltaic project constructed
by PetroChina so far, was officially launched. As at the end of 2022, all ground works have been completed and the project has
entered the final debugging stage.

On December 9, a 40 MW/80MWh electrochemical energy storage system was installed at the Yumen Oil Field 200 MW
Photovoltaic Power Plant and put into operation, which is the first of its kind in the construction of new energy storage projects at
Yumen Oil Field.

On December 13, the Yumen Oil Field Jiudong 5MW Distributed Photovoltaic Power Generation Project officially commenced
construction.

52
CLIMATE CHANGE AND ENERGY TRANSITION

CASE STUDY

Working with Partners to Lay Out our Battery Charging (Swapping) Business Plan

With the global upgrade and transition to clean energy sources, new energy vehicles have become one of the most remarkable
growth engine in the automotive market. To meet consumer demands, our Company has collaborated extensively with other
industries to lay out strategies to develop battery charging (swapping) business.

In September 2022, Shanghai Jieneng Zhidian New Energy Technology Co., Ltd. (hereafter referred to as “Jieneng Zhidian”)
was officially established. Jieneng Zhidian is co-invested by PetroChina, Sinopec, SAIC Motor, Contemporary Amperex, and
Shanghai International Automobile City Group. By fully leveraging their respective strengths in respect of clean energy supply,
new energy vehicles and battery R&D, smart network connection, and smart transportation etc., Jieneng Zhidian has built
a new platform for leasing power batteries, and facilitated research and development on, among others, battery swapping
technologies, battery operation and management, and big data services. It aims to create a model where the battery is
completely separated from the car and build a standardized platform to bring a safer, more reliable, more convenient, and
faster travel experience for owners of new energy vehicles.

At present, 416 battery charging (swapping) stations were built and put into operation by PetroChina across 31 provinces
(autonomous regions and municipalities) in China. In the future, our Company will further increase its investment in the
battery charging (swapping) business. Our Company plans to build more than 1,000 charging (swapping) stations by 2025 and
establish an upgraded comprehensive energy services network that provides chargeable and swappable batteries.

Green Products
We optimize the energy consumption structure by upgrading energy products. Our Company’s refineries fully supply China VI
standard gasoline and diesel to meet the market demand for high-quality oil products. We have increased the production and use
of clean energy and upgraded oil products in Beijing following the Beijing VIB standard, which adheres to higher environmental
requirements. The manufacturing level of downstream green chemical products and the level of whole life-cycle green management
have continued to improve, effectively supporting the country in achieving its air pollutant emission reduction targets. In response to
the International Maritime Organization’s (IMO) sulphur limitation regulations, we have developed and produced low-sulphur bunker
fuel oil with sulphur content less than 0.5% to protect the ocean-atmosphere system. We have carried out the LNG filing operation
on international shipping for the first time, providing a new choice for ocean-going ships to apply green energy.

Clean Energy Substitution


Clean Energy Substitution
in the Oil and Gas
Production Process
Our Company has vigorously introduced measures to save energy and reduce carbon
emissions, substituting clean energy for non-renewable energy sources in our
565,800
Newly added capacity of wind
kW production process. This allowed us to minimize fossil fuel consumption and carbon
emissions at the source and achieve our carbon reduction goals. In 2022, an action plan
and photovoltaic generators was implemented to adopt clean and low-carbon practices at all upstream stages of our
oil and gas production process. As a result, our new oil and gas projects saw an increase
1,154.7 %
Year-on-year increase of installed
in clean energy consumption, while existing oil and gas projects are on the path to a fully
low-carbon future through a three-step approach, namely, “energy saving and reduction,
capacity of wind and photovoltaic clean energy substitution, and the adoption of negative carbon measures”.
generators

113,700 kW
Newly added capacity of waste
Establishment of Green Enterprises
To encourage enterprises to adopt green and low-carbon energy sources, our Company
heat generators
established a system for creating, evaluating, and recognizing enterprises that have gone

38.5 %
Year-on-year increase of installed
green. In 2022, our Company continued to improve and standardize this system, and
fully extended its implementation to our principal activities of oil and gas production, oil
refining, petrochemical operation, and sales of oil products. 17 enterprises were newly
capacity of waste heat generators
recognized as green enterprises and we currently have 23 green enterprises in total.
53
ENVIRONMENTAL PROTECTION
The natural environment is fundamental to human survival and
development. Only through respecting, accommodating, protecting,
and co-existing harmoniously with nature, can we achieve sustainable
development. We optimize our ecological and environmental protection
management mechanism. We remain committed to the sustainable
use of natural resources, conduct extensive pollution treatment and
prevention, protect biological diversity and natural habitats, and
actively build a green enterprise as we strive to achieve harmonious co-
existence between energy and the environment.

The UN Sustainable Developmen Goals


PetroChina Company Limited
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

ENVIRONMENTAL RISK MANAGEMENT


Our Company actively responds to the United Nations’ 2030 Agenda for Sustainable Development, and widely recognized
international environmental protection conventions. We strictly comply with relevant laws and regulations such as the
Environmental Protection Law of the People's Republic of China ("Environmental Protection Law”) and comply with national
and industrial environmental protection standards. Learning from industry-leading environmental practices and experiences,
we have formulated and implemented our company’s Environmental Protection Management Regulations and optimized our
environmental risk management mechanism.

We incorporate environmental protection into the performance assessment of our Company’s management and the senior
management of our branches (subsidiaries). We have established a system of accountability for environmental protection and
lifetime accountability for ecological protection. We also have established an environmental protection incentive mechanism to
recognize units and individuals who achieve outstanding results in environmental protection.

Improvement of HSE Management


HSE Management System
Our Company pursues the goal of “zero accident, zero pollution, zero harm” and
Accreditation always regards HSE as prerequisites for business development. We implement a
uniform HSE management system across our global operations and have established

116
a globally integrated HSE working platform and risk control platform. We adhere to our
green development concept of “integration and coordination between development
Number of subsidiaries certified activities and environmental protection, giving priority to environmental protection”, and
by HSE Management System (Q/
continuously strengthen supervision and safety training in order to enhance our HSE
SY08002.1)
management performance.

105 Our Company attaches great importance to the establishment of a HSE management
system. We lead China’s petroleum industry in publishing and implementing an HSE
Number of subsidiaries certified
management system standard specific to China’s petroleum industry (Q/SY08002.1),
by Environmental Management
System (ISO14001) which fully covers all the requirements of the Environmental Management System
(ISO14001) and Occupational Health and Safety Management System (ISO45001)

107 in all technical aspects. All subsidiaries of our company have implemented the HSE
management system based on Q/SY08002.1.
Number of subsidiaries certified
by Occupational Health and Safety Based on the principle of “integration, specialization, differentiation”, our Company
Management System (ISO45001) conducts annual audits under the QHSE management system on subsidiaries. In 2022,
our Company fully completed comprehensive audits through methods such as “online
supervision plus offline verification”, “enterprise cross-audit” and “internal audit and
guidance plus special audit”. We made effective use of the audit results to strengthen
closed-loop rectification of issues and promote continuous, steady improvement of our
Company's safety and environmental protection performance.

In 2022, neither the Company nor


any of our branches (subsidiaries) Environmental Risk Prevention
were on the list of heavily polluting
enterprises released by the Ministry Our Company incorporates environmental risks into our internal control and risk
of Ecology and Environment.
management system. We conduct in-depth ecological and environmental risk
identification, review and assessment and continue to improve our “three-grade

56
ENVIRONMENTAL PROTECTION

prevention and control” system while strengthening ecological and environment risk
control measures. We have formulated and revised the Special Emergency Response
Plan for Environmental Emergencies, specifying respective responsibilities across all
departments and levels of headquarters, and improved the operability of the plan. All
our enterprises regularly carry out emergency response drills for handling environmental
emergencies. We classify and manage potential hazards and formulate respective
rectification measures in accordance with our Standards for Reviewing and Addressing
Potential Ecological and Environmental Hazards, thereby continuously optimizing our
system for reviewing and addressing potential ecological and environmental hazards.

Escalation policy on
01 02 Strict implementation of
accidents and incidents Layered accountability policy
Management and
Graded Prevention
Sharing of lessons and Control Escalation policy on
from incident accountability on liable persons
04 03

Three-level Prevention and Control System for Water Pollution Risks

Level 1 prevention and control system Level 2 prevention and control


system
To prevent potential minor environmental
pollution risks by establishing cofferdams, To prevent potential risks of more
fire dikes in tank areas and their supporting major environmental pollution
facilities. by setting up rainwater cut-off
systems, wastewater dams, overflow
prevention and diversion facilities,
Three-level Prevention and necessary intermediate buffer
Control System for Water facilities and supporting facilities.
Pollution Risks
To establish a safe, timely and effective
comprehensive pollution prevention and
control system, carry out environmental
risk assessment, and take necessary
prevention and control measures to
effectively control water pollution
risks and prevent oil leakage.

Level 3 prevention and control system

To prevent potential risks of major environmental


pollution by setting up terminal buffer facilities and their
supporting facilities.

57
PetroChina Company Limited
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

Risk of secondary environmental disaster events arising out


RMB

The “Six Major Environmental Risk Factors” Identified by the Company


of major safety accidents

3.89
billion

Risk of personal injury and/or environmental damage due to


Environmental protection expenditure leakage of hazardous chemicals

Risk of environmental pollution events caused by leakage of


oil and gas

Risk of public security events arising from the loss, theft, loss-
of-control or falling-into-well of radioactive sources

Risk of mass events caused by environment-related activities

Risk of environmental pollution events caused by discharge


of “Three Wastes” in excess of standards

Environmental
Monitoring of discharge at Risk Management Protection of the ecological
major pollution sources of Focus Areas environments in key watersheds
in 2022
Publication and implementation of the Protection of the ecological
2022 Online Monitoring Equipment environment of key watersheds of the
Installation and IoT Plan for Discharge Yangtze River and the Yellow River,
at Major Pollution Sources, full commencement of a three-year action
implementation of IoT monitoring plan in connection with the Work
of national major pollution sources, Plan for Strengthening the Protection
strict monitoring of up-to-standard of the Ecological Environment in the
discharge of enterprise pollutants, Yellow River Basin, publication of the
implementation of dynamic analysis Notice on Further Implementing the
and early warning of over-limit and Plan for Protection of the Ecological
abnormal discharge Environment in the Yellow River Basin
and the Yangtze River Economic
Commencement of on-site inspection of
Belt, enhanced implementation of
automatic enterprise pollution source-
major projects, strict prevention of
monitoring facilities
environmental risks at key watersheds

58
ENVIRONMENTAL PROTECTION

SUSTAINABLE We greatly value the protection and rational use of resources. By formulating and
implementing the Measures of PetroChina Company Limited for Energy and Water
UTILIZATION Conservation (“Company’s Measures for Energy and Water Conservation”), the Measures

OF
of PetroChina Company Limited for Land Management (“Company’s Measures for Land
Management”) and other management systems, we have strengthened our protection

NATURAL of water resources, conserved fresh water resources, and rationally utilized land
resources. We have improved the utilization efficiency of energies to minimize resource
RESOURCES consumption and utilize our resources in a sustainable manner.

Water Management
Water Saving Our Company strictly complies with applicable laws and regulations related to
water resources protection and water pollution prevention and control, such as the
Environmental Protection Law, the Water Law of the People’s Republic of China, and the

8.71 million cubic meters


Amount of water saved
Law of the People’s Republic of China on the Prevention and Control of Water Pollution
(“Prevention and Control of Water Pollution”), and implements the National Water
Conservation Action Plan. We attach equal importance to the prevention and control of
Exceeding our objective for 2022
(6.80 million cubic meters) water pollution and the recycling and reuse of water resources, and are committed to
protecting the ecological environment of water sources. We strive to “increase the water
resources utilization efficiency and realize the sustainable use of water resources” in all

746.88 million
cubic meters
Fresh water consumption
aspects of our production and business operation.

We have incorporated water-saving indicators into our performance evaluation


framework and implemented two systems to enhance our water consumption
management - a target responsibility system and an assessment and evaluation system
0.42 %
Year-on-year decrease in fresh
that keep track of our energy and water conservation goals. We have reduced our
freshwater consumption by applying advanced water-saving and wastewater-recycling
water consumption technologies and by actively developing and utilizing unconventional water resources
such as seawater, reclaimed water, and rainwater. In 2022, the total annual freshwater
consumption of our Company was 746.88 million cubic meters, representing a decrease
0.481 cubic meters
Water withdrawn for processing 1
of 0.42% and 8.71 million cubic meters of water saved.

ton of crude oil


Exceeding our objective for 2022 Our Objective
(0.485 cubic meters)

In 2023
Amount of water saved will be Water withdrawn for processing
more than 1 ton of crude oil will be lower than

6.30 million cubic meters 0.480 cubic meters

59
PetroChina Company Limited
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

Whole-Industry-Chain Water Resources Management


Oil, gas and new energy
Effectively reducing fresh water consumption by increasing wastewater recycling rates and reducing evaporating and other
measures
Pushing for a wider adoption of water-saving technologies and the extensive use of advanced water-saving materials,
technologies and equipment, as well as analyzing our rational use of water to improve water utilization efficiency
Proactively developing and utilizing unconventional water resources such as seawater, reclaimed water and rainwater
Maintaining and renovating our water systems to improve our water compliance
Optimizing our operation plans, and upgrading our wastewater discharge and treatment system to reduce the discharge
amount of produced water
Separating oil from water and filtering recycled wastewater for oil recovery and water reinjection, to avoid polluting
groundwater and surface water

Refining, chemicals and new materials


Applying clean production techniques, and optimizing our water consumption system to improve water efficiency
Testing the leakage rate of our water pipe network, and improving our groundwater pipe network through rigorous leak
detection and sophisticated leak-plugging solutions, to reduce groundwater leakage
Adopting advanced recycled water treatment technologies, and increasing the concentration rate of recycled water, to
reduce water replenishment
Paying full attention to wastewater treatment and reuse, improving wastewater reuse technologies, reducing wastewater
discharge, and increasing the reuse rate of industrial water. In 2022, the reuse rate of wastewater at our Company’s refining
and chemical enterprises increased by 1.4 percentage points year-on-year

Marketing
Preventing leaks in the underground storage tanks at our service stations by installing a 24/7 leak detection system to
ensure soil health and groundwater safety

Natural gas marketing

Implementing water quota management, and annually issue the urban gas and auxiliary production system with total water
consumption index and the LNG factory and LNG receiving terminal production water index to ensure that the total water
consumption is controlled

Implementing transformation of water supply pipeline of LNG plants to reduce leakage losses, and carry out transformation
of purification and reuse of production and domestic wastewater to reduce discharge of wastewater

Optimizing the cooling water flow of seawater pump to achieve annual water saving of 25,000 tons

Rationally controlling the cooling water temperature of compressor in CNG master station to reduce evaporation of
circulating water

Reasonably arranging the inspection plan and operation procedures for liquefied gas tanks, recycle the replacement water
and reducing the water consumption for replacement in tanks

Energy Efficiency Management


We are committed to the principles of “conservation first” and that “energy conservation
Our investment in upgrading energy and
water saving technologies throughout means an increase in production and saving means an improvement in efficiency”.
the year. Our Company has taken major steps forward in conserving energy and reducing

757
consumption to constantly increase our energy efficiency. We actively respond to the
RMB million national Industrial Energy Efficiency Improvement Action Plan, signing the Letter of
Commitment to Energy Saving and Carbon Reduction for Key Industries and Enterprises,

60
ENVIRONMENTAL PROTECTION

Energy Efficiency formulating the Company’s Measures for Energy and Water Conservation and other
Management management systems, reviewing energy saving plans of investment projects involving
fixed assets, and implementing a dual control system in the assessment framework to

0.71
Energy saved
million tons of
standard coal
evaluate our total energy consumption and intensity in order to constantly improve our
energy consumption management. We have also accelerated the restructuring of our
energy mix and continued to increase our energy efficiency by implementing measures
Exceeding our objective for
2022 (0.56 million tons of such as adopting energy management and control practices, reforming energy-saving
standard coal) technologies, optimizing our energy system, and striving to reduce energy consumption.
In 2022, the Company formulated an action plan to save energy and reduce carbon

62.45 million tons of


standard coal
Total energy consumption
emissions, shared our experience in energy-saving technologies with other companies,
stepped up our efforts in managing and controlling energy sources, upgrading and
reforming refined oil and ethylene products and other key areas, and saved 0.71 million
tons of standard coal of energy during the year.

109 kilograms of
standard coal/ton
Comprehensive energy
Our Objective

consumption of production per


unit of oil and gas equivalent In 2023
Exceeding our objective for
Amount of energy saved will Comprehensive energy consumption of production
2022 (115 kilograms of standard
be more than per unit of oil and gas equivalent will be under
coal/ton)

0.56 million tons of


standard coal 110 kilograms of standard coal/ton

Progress of Energy Efficiency Management Work in 2022

Action plan Inspection and evaluation of energy consuming equipment

Researched and prepared a Company action plan to save Tested and evaluated the energy performance of more than
energy and reduce emissions, which clarifies the development 17,000 sets of energy-consuming equipment such as oil
ideas, main objectives, key projects and safety measures for pumping units, heating furnaces and pump units
2025 and 2030

Control of energy sources Reformation of energy and water-saving technologies

Revised the Management Measures for Energy-saving Reviews Invested RMB 757 million into the upgrading of energy and
of Investment Projects Involving Fixed Assets to ensure that water-saving technologies throughout the year
the energy-saving reviews of our projects are compliant with
the law, and that the energy efficiency of our projects can
outperform most industry peers
Exchanges and promotion of energy-saving technologies
Benchmarking energy efficiency
Organized an energy-saving technology exchange meeting for
our Company
Benchmarked our energy efficiency performance in key areas
against standards prescribed by the NDRC for high energy- Jointly organized the “2022 Exchange Meeting on Energy-
consuming industries, and increased the energy efficiency of saving and Carbon Reduction Technologies for the
refined oil and ethylene to meet standards Petrochemical Industry ”

61
PetroChina Company Limited
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

CASE STUDY

Continuous Participation in the Energy and Water Efficiency Pacesetter Awards

In 2022, our refining companies actively entered into the nationwide Energy and Water Efficiency Pacesetter Awards organized
by the China Petroleum and Chemical Industry Federation for the Chinese petroleum and chemical industry. Dushanzi
Petrochemical, a subsidiary of the Company, was recognized as a Pacesetter in energy and water efficiency in the ethylene
industry, while Urumqi Petrochemical was recognized as a Pacesetter in energy efficiency in the synthetic ammonia industry.

Land Resource Management


The Company attaches great importance to land resource protection, and endeavors
to foster harmony and unity among the use of oil and gas resources, land resources,
and environmental resources. Strictly abiding by the Law of the People’s Republic of
China on the Prevention and Control of Soil Pollution, Soil Environment Quality Risk
Control Standard for Soil Contamination of Development Land, and other national
Our Company has fully implemented laws and regulations, as well as industry-specific pollutant discharge standards, we
non-polluting and clean drilling have formulated the Company’s Measures for Land Management for the purpose of
technology in 100% of our oil and implementing the most stringent arable land protection system and land conservation
gas exploration and production
procedures, allowing us to effectively system in China. Such measures have been put into effect at all stages of production and
protect land resources. operation to ensure the sustainable use of land resources.

We have strengthened our land management system, clarified the requirements for
the sustainable use of land resources in terms of planning, development control,
revitalization of existing land resources, structure optimization, land restoration, and
land withdrawal. We strive to guarantee the healthy and sustainable development of
land used in our operations from the prospective of policy and implementation, with an
aim to consume less land and to optimize our land structure.

Progress of Sustainable Use of Land Resources in 2022

Using land in an economical


and intensive manner

1,280 hectares
Applied technologies to construct
cluster wells, horizontal wells,
integrated stations, and multi-layer
oil fields, optimized our engineering
designs, and used our newly-
Newly-acquired construction land acquired land in an economical
used in an economical manner Restoring land
manner
Made good use of land with low Carried out land restoration
land use efficiency to build new ourselves and commissioned third
energy projects, drilled new wells in parties to restore land to strictly
abandoned well sites to revitalize fulfill our obligation of restoring

32
hectares
existing land temporary land

Returning unused or inefficient


construction land

Withdrew from construction land Returned unused or scarcely-used


land to the local government

62
ENVIRONMENTAL PROTECTION

POLLUTANT Our Company strictly abides by the Environmental Protection Law, the Law on the
Prevention and Control of Water Pollution, the Law of the People’s Republic of China on
DISCHARGE the Prevention and Control of Atmospheric Pollution, the Law of the People's Republic of

MANAGEMENT
China on Prevention and Control of Environmental Pollution by Solid Waste ("Prevention
and Control of Environmental Pollution by Solid Waste”), the Law of the People’s Republic
of China on Prevention and Control of Environmental Noise Pollution, the Regulation
on the Administration of Permitting of Pollutant Discharges and other relevant laws
Online Monitoring of Key and regulations. We have also implemented pollutant discharge standards such as the
Sources of Pollutants
Integrated Wastewater Discharge Standard, the Air Pollutants Discharge Standard, the
The Company issued the “2022 Online Pollutant Discharge Standards for Petroleum Refining Industry, the Pollutant Discharge
Monitoring Equipment Installation
and Networking Plan at Key Sources of Standards for Petrochemical Industry, the Air Pollutants Discharge Standard for
Pollutants” to strictly monitor the pollutant Onshore Oil and Natural Gas Exploitation Industry, the Soil Environment Quality-Risk
discharge compliance of enterprises, Control Standard for Soil Contamination of Development Land, etc., implemented in-
and analyze and issue warnings for those
depth measures to win the strategic fight of pollution prevention and control, issued
with excessive and abnormal emissions.
An onsite inspection of the automatic PetroChina’s Measures for Pollutant Discharge Permitting Administration and other
monitoring equipment of the enterprises’ institutional documents, systematically carried out key tasks on pollution prevention
pollutant sources was also carried out.
and control, standardized the implementation of pollutant discharge management
As of the end of 2022, 717 pollutant
sources were monitored by PetroChina’s procedures for enterprises, improved the quality and performance of pollutant
network, and key sources of pollutants prevention and control and treatment, and continued its combat against pollution to
were monitored through comprehensive keep our skies blue, waters clear, and lands clean.
monitoring network. The scope of the
automatic monitoring of pollutant sources
covered major production equipment
and pollutant sources of PetroChina.
Key Measures Adopted to Manage Pollutant Discharge

Through strict management and control, we have ensured that our pollutant discharge meets
relevant standards, implemented relevant measures to prevent pollution at the production
source and strengthened the management for the operation of existing pollution treatment
devices

50,100 tons
Upgraded and renovated our pollution treatment facilities and ensured that wastewater, waste
gas and other pollutants are discharged steadily and compliant with relevant standards

Put in place stronger pollution warnings, and achieved real-time monitoring of wastewater and
waste gas emissions through the online pollution monitoring system

Nitrogen oxides (NOX) emissions Incorporated our major pollutant discharge targets into the annual performance agreements of
key management staff, and strictly assessed their performance

9,200 tons
Air Pollutant Control
Sulfur dioxide (SO2) emissions Our Company constantly strengthens the control of conventional air pollutants and
characteristic air pollutants. We formulated the Ozone Pollution Prevention and Control
Action Plan (2022-2025), deployed, and implemented key missions to prevent and
control the emissions of volatile organic compounds (VOCs), nitrogen oxides (NOX) and

68,200 tons
other ozone precursors to further improve the air pollution control performance of the
Company. We have also comprehensively conducted upgrading and remedial work on
oil and gas fields, refining operations, sales of oil storage tanks and other key areas of air
pollution such that new standards can be met. Moreover, we have continuously stepped
Volatile organic compounds (VOCs) up our efforts in the online monitoring of air pollution sources and standard compliance
emissions (from refining operations) management and adopted emergency response measures for heavily polluted days in
Note: Flaring emissions is included in the flue key locations and time periods to strictly control emissions and comply with standards.
gas emission data
63
PetroChina Company Limited
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

Solid Waste Disposal


Our Company attaches great importance to the pollution control of solid waste, especially
hazardous waste. We strictly comply with the Law on the Prevention and Control of
Environmental Pollution by Solid Waste, and have adopted a computerized dynamic
Solid Waste Disposal
management and control system on the entire solid waste management process from
waste generation, collection, storage, transportation, transmission, utilization to its disposal.

2.485
General solid waste
million tons
In 2022, we carried out hazardous waste inspection as well as operation and maintenance
management of disposal equipment to further strengthen our control over hazardous waste.

Our Objective

100 %
Compliance rate of general solid
waste disposal
Solid waste disposal compliance rate
100 %
0.943
Hazardous waste
million tons

Disposal of Solid Waste in Compliance with Laws and Regulations

100 %
Compliance rate of hazardous
Key measures:
Our Company uses clean production technology and has greatly reduced the generation
waste disposal of solid waste, especially hazardous waste, by reducing the use of oil-based mud through
layered drilling, applying technologies to dispose of drilling mud while drilling and degreasing
down-holes, and carrying out above-ground “box-like” well repair operations and other clean
Note: The above data reflects the amount production measures
of solid waste disposed by third-party
institutions with relevant qualifications Our Company has built more facilities to comprehensively utilize and dispose of oil-bearing
commissioned by the Company waste and other solid waste, and engaged third-party institutions to dispose of and utilize
solid waste in accordance with relevant standards, to ensure the compliance of the whole
process of solid waste disposal and utilization with laws and regulations

Our Company has established a unified whole-process management and control platform
for solid waste, thereby enabling the precise whole-process management and monitoring
of general industrial solid waste and hazardous waste

Wastewater Discharge Management and


Recycling Utilization
We strengthened the standardized construction and management of wastewater outlets,
adopted a graded approach for the management and control of wastewater discharge,
implemented wastewater pretreatment and in-depth treatment measures, enhanced
our wastewater disposal techniques, maintained stable and efficient operation of our

5,000 tons
wastewater treatment facilities, and ensured that our pollutant emission was stable and
compliant with requirements in general. We also carried out a comprehensive inspection
of wastewater outlets, analyzed the emission reduction potential of enterprises that were
the relevant larger wastewater polluters, increased wastewater recycling rates, optimized
Amount of chemical oxygen demand the operation and daily management of wastewater treatment facilities, and ensured the
(COD) emission attainment of wastewater prevention and control objectives.

64
ENVIRONMENTAL PROTECTION

CONSERVATION We actively respond to global initiatives and international conventions such as the
2030 Agenda for Sustainable Development and the Convention on Biological Diversity
OF issued by the United Nations, and the Opinions on Further Strengthening Biodiversity

BIODIVERSITY
Protection issued by the Chinese government, and have firmly established a concept
of ecological civilization that respects nature, conforms to nature, and protects nature.
We have integrated the concept of biodiversity conservation into the entire process of
our business operations and actively participated in global biodiversity conservation.
The Company protects wetlands, rainforests, oceans and other natural ecological
We have actively fulfilled our environments and endangered wild animals and plants, with an aim to increase
obligation of restoring land by
the diversity, stability, and sustainability of ecosystems, and help achieve the goal of
restoring the ecological system
of temporary land used in our “protecting, restoring and sustainably utilizing ecosystems and curbing biodiversity loss”.
production and operation. In
Our Commitments
2022, the Company restored

9,213 We shall strictly abide by the relevant laws and regulations of China
and other countries where our operations are located, and not conduct
hectares of temporary land business in environmentally sensitive areas and natural ecological
protection zones prohibited by law

Whole-industry-chain Ecological
Environment Management
Our Company is committed to reducing and eliminating the potential impacts caused
by our production and operation to the ecological environment and biodiversity, insists
on managing and controlling pollution at the source, and implements a whole-industry-
chain and whole-life-cycle ecological environment management system.

During the project design and planning stages


We create a strict access list for projects in accordance with the laws and regulations, conduct
environmental impact assessments, and propose targeted measures related to ecological
environment protection to require facilities and access routes to bypass natural, vulnerable, and
important wildlife habitats.

During the project construction stage


We carry out ecological restoration in areas where ground vegetation has been destroyed. During
the restoration process, we prioritize the use of topsoil and species native to the area over invasive
species to prevent ecological harm and to create plant communities that are compatible with its
surrounding ecological environment, ultimately forming self-sustainable ecosystems.

During the project operation stage


We adopt a wide range of environmental technologies, implement a multi-level risk prevention and
control system, and take various measures to limit our disturbance to natural ecology in order to
minimize our impact on biodiversity.

When a project is completed


We carry out greening, ecological restoration and improvement work based on local ecological
characteristics to gradually restore impacted areas; we also carry out biodiversity offsetting activities
in receptor sites.

65
PetroChina Company Limited
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

Whole-process Eco-environmental Management of Whole Industry Chain

Exploration and Storage and


development transportation

Whole process of
environment management

Stakeholder Communication

Stakeholder Communication
Environmental Ecological Monitoring and Ecological
Evaluation
management protection treatment restoration

Project Put into


Design Construction Acceptance
construction production

Multi-level risk prevention


and control

Refining and
Sales and trade
petrochemical

Biodiversity Protection
We have incorporated biodiversity protection into our Company’s management system.
Adhering to our principle of promoting the integrated protection and systematic
management of mountains, rivers, forests, farmlands, lakes, grasslands, and deserts,
we have adopted natural restoration measures or environmental-friendly restoration
processes, carried out environmental protection activities in key watersheds such as the
Yangtze River and Yellow River areas, created biosphere reserves and environmentally-
friendly mines, and implemented a variety of biodiversity protection measures. Relying
on nature-based solutions (NbS(s)), we have explored the development potential and
direction of charitable tree planting, carbon sequestration forest building, ecosystem
restoration and biodiversity conservation, as well as the establishment of biomass
energy operations and ecological corridors. Aside from encouraging employees to
actively participate in biodiversity conservation activities, we have also actively mobilized
communities, the public, business partners and other stakeholders in our operation
locations to collaborate with each other in contributing to biodiversity protection.

66
ENVIRONMENTAL PROTECTION

Key Measures and Actions Adopted to Protect Biodiversity

Measures Major actions

Incorporating Formulated and issued the Ecological Protection Action Plan, the 14th Five-Year Plan for Green
biodiversity into Development, the Ecological Ban and other regulations and management systems
our Company’s Continuously improved our biodiversity protection system and incorporated biodiversity risk
management system assessments into the whole-life-cycle management of our projects

Implemented enhanced environmental protection measures for key watersheds such as the Yangtze
River and Yellow River areas, carried out the three-year Action Plan for Enhancing Ecological Environment
Protection in the Yellow River Watershed, and issued the Notice on the Requirements for the Further
Implementation of the Action Plan for Ecological Environment Protection in the Yellow River Watershed
and the Yangtze River Economic Belt

Exploring nature-based solutions (NbS(s)), we strived to create 10 voluntarily- contributing biosphere


reserves (represented mainly by the Guowu Lake at Daqing Oil Field) based on the same standards as
the Other Effective Area-based Conservation Measures (OECMs). Pilot projects were carried out at five oil
field companies in Daqing, Changqing, Huabei, Tarim, and Xinjiang. (For more information, please refer
to the Case Study titled “A Nature-based Solution (NbS): The Active Creation of a Voluntarily-contributing
Biosphere Reserve at Daqing Oil Field in the Guowu Lake Area”)

Carried out environmentally friendly mine construction activities, with a total of 72 oil and gas field
enterprises or business units entering the 2022 List of Environmentally Friendly Mines in the past three
Carrying out a variety
years
of biodiversity
protection practices Protected, restored and promoted the sustainable use of land, took our greatest care to reduce arable
land occupation, protected water and soil resources, restored vegetation, and strived to restore the
ecological environment of areas where our operations are located

Actively conducted environmental impact assessments of our construction projects, conducted research
on wild animals and plants species and the ecological environment, prioritized the adoption of avoidance
measures to prevent damage on biodiversity at the source, including making adjustments to our site
and route selection or optimizing project plans to avoid ecologically sensitive areas, and coordinating
construction works to avoid sensitive times, such as breeding, wintering, and migration seasons and to
avoid disturbing other critical activities of vulnerable species

Widely organized tree planting activities to create unevenly-aged and multi-layered close-to-nature
forests; responding to the “Trillion Tree Campaign”, we participated in the “Plant a Million Trees in Ten
Thousand Well Sites” activity

Protected valuable and old trees and wildlife habitats

Encouraged staff to participate in educational events such as “World Wildlife Day” and “World
Environment Day” to enhance their awareness towards biodiversity conservation

Organized an activity for collecting excellent cases of biodiversity conservation to promote and share
Promoting the
knowledge on biodiversity conservation
concept of biodiversity
protection Attended the side event on "Nature-based Solutions for Synergistic Governance of Climate and
Biodiversity" at the 27th Conference of the Parties to the United Nations Framework Convention on
Climate Change (COP27), where we introduced to the audience PetroChina's innovative practices to
promote synergistic governance of climate change response and biodiversity conservation

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PetroChina Company Limited
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

CASE STUDY

A Nature-based Solution (NbS): The Active Creation of a Voluntarily


Contributing Biosphere Reserve at Daqing Oil Field in the Guowu Lake Area

Since 2008, we have carried out ecological restoration and biodiversity monitoring and
protection work at Daqing oil field in the Guowu Lake area. After 15 years of restoration,
its green area has now reached 560,000 square meters and the area of water bodies has
reached 1.02 million square meters. The land is now home to 250,000 square meters of
grass and flowers, 100,000 square meters of aquatic plants, more than 1 million trees
and shrubs, 99 species of wild plants, more than 60 species of wild animals, including
National Class II Protected Animals such as Podiceps cristatus, fulica atra, and anas
platyrhynchos.

In 2022, our Company included Guowu Lake in the list of self-contributing biodiversity
conservation sites, and following our innovative concept of “breeding trees at high
levels, storing water at low levels, and allowing self-seeding grass and reeds to grow in
transitional areas”, we have monitored the progress of our plant cultivation activities
and the resulting plant diversity, and created a biologically-diverse and stable ecological
system in the area.

68
ENVIRONMENTAL PROTECTION

CASE STUDY

An Oasis for Wild Animals and Plants in the Gobi Desert

The Tarim Oil Field is located in the desert area in Western China. Making a synchronized and coordinated
effort towards gas development and environmental protection, our Company has actively improved the
ecological environment in the desert hinterlands and turned a part of the Gobi Desert near our operation
area into an oasis for wild animals and plants.

In the Tazhong operation area, our Company and the Xinjiang Institute of Ecology and Geography (XIEG)
of the Chinese Academy of Sciences have carried out in-depth cooperation to build a stable and diverse
ecological chain. By constructing a “trinity” of green landscapes consisting of a botanical garden, a
demonstration garden, and green spaces near residential apartments, and selecting desert plants from all
over the country for cultivation and planting, our Company has built a botanical garden with more than 260
desert plants. We have constructed a green space spanning 45.38 square kilometers in our operation field
and have been acknowledged as one of the “Top 400 Enterprises with Excellent Forestation and Greenery”
by the National Greening Commission. The botanical garden in the desert in Tazhong has also become a
paradise for wildlife, with over 100 types of birds having migrated to the area. Wild animals such as Bactrian
camels, hares, and gerbils are also regular visitors to the oasis.

Our Company has tirelessly carried out tree planting activities in the operation area of the Kela-2 gas field,
and has now built a 156-mu green belt. With an improved ecological network, the area is now inhabited
by Mongolian gazelles, hares, foxes, and other wild birds. Our staff have become increasingly aware of the
need for biodiversity conservation and have taken the initiative to rescue wildlife. In April 2021, a common
kestrel (a Class II Protected Species in China) with a broken wing was rescued by our Company’s employees.
At the same time, our Company also set up signs around the habitat of Mongolian gazelles and near water
sources to promote wildlife conservation to nearby nomadic groups. Security guards were also assigned to
patrol the area.

69
EMPLOYEE RIGHTS AND
INTERESTS AND DEVELOPMENT
Employees are our most valuable assets. Promoting the all-
round development of employees is one of our primary
objectives. We protect employees’ human rights, place
great emphasis on their physical, mental health and safety,
and provide a platform for their career development. We
continue to promote localization of employees, endeavor
to create an inclusive, equal, mutually trusting, and
collaborative working environment, and align employee
values with our own.

The UN Sustainable Developmen Goals


PetroChina Company Limited
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

EMPLOYEE We remain committed to a people-first philosophy in treating our employees with


respect and equality while protecting their legal rights. We endeavor to resolve the
HUMAN most practical issues that our employees are most concerned about and ensure that all

RIGHTS
employees share the fruits of our development on an equal basis.

Fair Treatment of Employees by Law


We conscientiously abide by international conventions, including the International
In 2022, our Company recorded Covenant on Economic, Social and Cultural Rights and the Elimination of Discrimination
zero cases of employment violations
that had a significant impact on our
in Respect of Employment and Occupation, along with domestic laws including the
business. Labor Law of the People’s Republic of China and the Labor Contract Law of the People’s
Republic of China, and relevant laws, rules and regulations of the host countries. We have
formulated and implemented regulations such as the Measures for the Management of
Employment Contracts and the Measures for the Management of Overseas Employment
and established a complete employment management system to regulate employment
practices according to the law. The system incorporates employment contract

100 % management, remuneration insurance and benefits, leave, performance appraisal and
vocational training.

We strictly comply with the applicable laws and regulations on the dismissal and working
Percentage of employees who took hours of employees. Tailoring to the actual circumstances of each subordinate of our
maternity/paternity leave returned to Company, we have formulated management regulations and detailed implementing
work and kept their posts rules that are applicable to all employees and business courses of our Company.
Through self-inspection of our employment practices in compliance with the law, we
regulate the process of recruitment, promotion, and the termination of employee
contracts, safeguarding the human rights of our employees.

We provide equal opportunities and fair treatment to all employees regardless of their

398,400 nationality, ethnicity, race, gender, religion, and culture. We attach great importance
to the employment of local residents, women, ethnic minorities and college students
Total number of staff
in order to increase job opportunities for local communities. In graduate recruitment,
we seek to favor graduates from poverty-stricken areas in Western China, households

7.17 % newly lifted out of poverty, households on subsistence allowance, zero-employment


households, and those with disabilities but nevertheless can meet our job requirements.
Percentage of female
administrative staff We strictly implement regulations on maternity leave entitlements and breastfeeding
breaks to protect the rights and interests of our female employees.

6.70 % We strictly abide by the Forced Labor Convention 1930, the Abolition of Forced Labour
Convention 1957, the Minimum Age Convention, and the Worst Forms of Child Labor
Percentage of employees of
ethnic minority Convention promulgated by the International Labor Organization, and the Law on the
Protection of Minors and the Provisions on the Prohibition of Child Labor promulgated by

0.14 % the State and similar legal requirements of countries and regions where we operate our
overseas businesses. We prohibit the employment of child labor and reject all forms of
Employee turnover rate
forced or compulsory labor. Our Company has established an employment examination
and supervision mechanism under which the recruitment of new employees, the daily
Note: Excluding staff employed
management of human resources, supplier/contractor access and other processes are
through labor dispatching, for seasonal
employment, temporary work and verified to prevent and control related risks. Our Company has never used any child
third-party staff. labor or forced labor.

72
EMPLOYEE RIGHTS AND INTERESTS AND DEVELOPMENT

Types of employment Workforce by country and region

Full-time: 100% China: 99.7%


Part-time: 0% Countries and regions other than China: 0.3%

Workforce by position
Workforce by gender
Administrative staff: 29.06%
Male employees: 75.46% Workforce Professional and technical staff: 15.41%
Female employees: 24.54% Composition Operating staff: 55.53%

Workforce by education
Workforce by age
Master's degree and above: 4.99%
25 or below: 1.99% 46-55: 50.89% Bachelor's degree: 37.39%
26-35: 10.32% 56 or above: 12.92%
College degree: 22.31%
36-45: 23.88%
Technical secondary school and below: 35.31%

Improving Remuneration and Benefits System


The remuneration system of our Company is closely centered on work arrangements for quality improvement, profitability
improvement, and strengthening the enterprise through talents. We constantly improve our market-oriented remuneration and
distribution mechanism and benefits system. We ensure that our pay raises align with the labor market and are linked to the
economic efficiency and labor productivity of our enterprises. We have established a wage determination mechanism that takes into
consideration and operates based on wage efficiency, efficiency benchmarking and salary
reviews, and perfected our core talent recruitment policy and other supportive policies
to enhance innovation and talent protection. We have also optimized our remuneration In 2022, we:
structure, improved our internal distribution system, and continued to give further
Optimized the market-oriented
priority of distribution to grassroots frontline personnel, key positions of challenges, and
remuneration and distribution
professional and technical personnel. We have provided specific incentives to key employee
mechanism
groups, and continuously increased incentives for high-end operation and management
Perfected the differentiated wage
personnel, core technology R&D personnel, and high-skilled leaders. We actively fulfill the determination mechanism that is
relevant requirements of the Social Insurance Law of the People’s Republic of China, fully linked to efficiency
pay our employees’ various social insurance fees timely, improve enterprise annuities and Increased remuneration incentives
supplementary medical insurance system, improve the production and life conditions of for core talents
our frontline staff and protect our employees’ interest.

Employee Communication and Engagement


We fully respect our employee’s democratic rights and lawful interests. We attach great importance to employees’ role
in democratic management, democratic participation, and democratic oversight. Apart from establishing and improving
labor unions, we have put in place a democratic style of management and a transparent system to deal with matters at our
plants, through the Employees’ Congress system, to protect employees’ rights to information, participation, expression, and
supervision. We have further standardized the content, procedures, and model of our open system for matters at our plants
by clarifying the duties and authorities, organizational system, and working processes for the Employees’ Congress.

Our Company has established multiple channels to communicate with employees and continued to implement democratic
procedures. We communicate across different levels of our Company and conduct multi-level communication through
meetings with staff representatives and online discussions, to encourage employees to participate in the management of
production and operations.

73
PetroChina Company Limited
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

HEALTH AND Our health and safety management covers all staff, including staff in the entities in our supply
chain. We give top priority to employees’ health and safety by emphasizing the occupational
SAFETY safety and health management and protection at operational sites, continuously improving
working conditions, abiding by the statutory requirements related to working hours and
holidays enforced in our business locations and taking care of employees’ mental wellbeing.

Occupational Health
Abiding by the Law of the People’s Republic of China on Prevention and Control of
Occupational Diseases, we have implemented the Outline of the “Healthy China 2030”
Initiative in our occupational health management, and formulated the Guidance on
Strengthening Employee Health Management, focusing on the prevention and control of
occupational hazards as well as the implementation of related measures, such as poison
prevention, dust removal and noise reduction, with a view to providing employees with a safe
and healthy work environment and guaranteeing employees’ physical and mental health.

Occupational Health

107 100 % 100 % 99.15 %


Number of subsidiaries certified by Percentage of health records Detection rate of occupational Percentage of employees
the Occupational Health and Safety created for employees health hazards in the workplace exposed to occupational health
Management System (ISO45001) hazards receiving health checks

Key Actions Related to Occupational Health in 2022

Response to Healthy China 2030 Construction of a healthy enterprise

Implemented the “Healthy China 2030” Initiative Prepared implementation rules for the establishment of a
healthy enterprise according to different business types and
refined the standards for establishing a healthy enterprise
Occupational health management Organized exchange seminars and work improvement
meetings to share practical experiences and typical practices
Issued the Guidance on Strengthening Employee Health in relation to the establishment of healthy enterprises
Management to further refine health management
measures such as the setting-up of health equipment and
Health management of overseas employees
facilities, the creation of a healthy enterprise, physical
examinations and health assessments, health interventions
Revised our Company’s Special Emergency Response Plan
and the creation of health records
for Overseas Public Health Emergencies to further optimize
Issued a negative list of health issues at special operation the response categories and first aid procedures for
positions, which was strictly enforced for 6 types of special overseas public health emergencies
operation positions including electrician work, aerial work,
Standardized the construction of medical offices and first
the operation of pressure vessels, the driving of vocational
aid stations for overseas projects
automotives, work at high altitudes, and work involving screens
Organized special trainings on the prevention and control of
malaria, monkey pox, Ebola, and other infectious diseases,
Occupational health promotion with over 3,500 participants

Successfully treated 9 overseas employees with serious


Organized the 2022 “Occupational Disease Prevention” illnesses by organizing cross-border medical transfers and
publicity campaign remote conferences

Hosted a quiz on health to raise employees’ awareness on Organized a series of 10 online activities titled “Gathering
the prevention and control of health risks on a Cloud Platform, We Stay Healthy”, with over 180,000
attendances

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EMPLOYEE RIGHTS AND INTERESTS AND DEVELOPMENT

Mental Health
Overseas Mental We pay close attention to our employees’ mental health and have incorporated mental health
Health Services into the overall planning of our establishment as a healthy enterprise. A hotline and a website
have been set up for psychological counseling, and various mental health training programs

1,624 hours
Service hours of the counselling
have been carried out, to help employees develop a positive and healthy state of mind.

Key Actions Related to Mental Health in 2022


hotline throughout the year

Mental health service protection system

995
Counselling cases
Formulated Ten Measures for Establishing a Healthy Enterprise to incorporate mental health
measures into the overall planning of our establishment as a healthy enterprise
Built a comprehensive service system, and constructed a longstanding mechanism to support the

1,577
Number of assessments and tests
mental health of employees
Formed mental health service teams to establish a cross-regional and cross-unit counselling
service mechanism
on the psychological readiness for
Set up a counselling hotline for our Company’s employees and their family members
overseas employees
Continuously improved the service platform of the Employee Assistance Program (EAP)
Provided counselling and talk therapy services to employees

Spread of mental health

Organized lectures and special trainings on mental health knowledge


Popularized and promoted mental health knowledge through our Company’s internal platforms
and media

Mental health management of overseas employees

Hosted a series of lectures on family bonding for overseas employees


Conducted assessments and tests on the psychological readiness of overseas employees

CASE STUDY

“Gathering on a Cloud Platform, We Stay Healthy”

In 2022, our Company organized a series of online activity titled “Gathering on a Cloud Platform, We Stay Healthy” to improve
the physical and mental wellbeing of our employees of overseas projects. The series of activity lasted for a month and were
held in the form of online seminars, giveaway contests, online experience sharing and other formats.

Major topics covered


“Caring family”: Aimed to strengthen family bonds between employees of overseas projects
The “Gathering on a Cloud Platform,
and their family members, help overseas employees and their spouses improve parent-child
We Stay Healthy” activity
communication skills to build stronger family relationships.
“Health station”: Provided answers to basic questions relating to illness and health issues
that employees of overseas projects were concerned with, and at the same time performed
was held 10 times online in total

mental health assessments to safeguard the physical and psychological wellbeing of overseas with more than
employees.
“Harmonious work”: Aimed to promote effective communication between employees of overseas
180,000 attendances

projects and managers by sharing experiences on demonstrations of care for employees.

75
PetroChina Company Limited
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

Safety and Security


Striving for “zero accidents and zero injuries”, we comprehensively improve our safety
management and safeguard the safety and health of our employees and staff members
of our suppliers/contractors.
Our Objective

Strengthen Safety Management


In 2023, the fatality rate
will be kept below Our Company embraces production safety as our core value. To this end, we implement
safety measures in every segment and procedure in our production and operation
0.35 processes. We actively promote the building of a longstanding production safety system.
In 2022, our Company continued to improve the top-level framework of our safety
persons/100 million
working hours management system that covers the entire process of our production and operation,
tracked the updates to relevant laws and regulations, and revised and issued the
Regulations on Management Responsibilities in Safety Production and Environmental
Protection at Headquarters, the Management Measures for Safety Production
Supervision, and the Management Measures for Safety Supervision of Major Hazardous
Sources of Dangerous Chemicals. With respect to key risks, we also formulated
regulations such as the Safety Management Rules for the Overhaul of Internal
Floating Roof Storage Tanks and the Management Measures for Safety Supervision of
Laboratories, and coordinated the remedial work for mitigate safety risks, including those
related to hazardous chemicals, oil and gas pipelines, town gas, and building safety. The
safety production remedial work was completed in three years, with major risks under
effective control.

Continued Strengthening of the Safety Management of our Production Process


In 2022, our safety production remedial work has been completed after three years (2020-2022) of implementation.

Centralized rectification of safety risks in key areas


We identified key risk areas such as the storage locations of oil and natural gas tanks, gas tanks, town gas, oil and gas well control,
and stepped up our efforts to rectify such hazards

Establishment of longstanding mechanisms for production safety


We established and improved several longstanding mechanisms for production safety, such as contracting points for safe production,
an “area manager system” for aerial work, and a rating system for evaluating the safety production performance of all employees

Implementation of differentiated safety risk management and control


Comprehensive assessment of safety risks at enterprises engaging in production and operation work were carried out. For enterprises
under different risk categories, we implemented differentiated safety risk control measures such as all-factor quantitative audits at
headquarters, audit guidance, project inspections and sample checking

Mitigation of safety risks related to hazardous chemicals


77 facilities, including those used for the inspection of large oil and gas storage tanks at our bases, the video surveillance system, the emergency cut-
off system, and the lightning warning system, were all well-equipped and put into operation, and existing hazards were mitigated

Full-scale production safety inspection


A total of 131,000 production safety inspections were conducted at all operation levels throughout the year

76
EMPLOYEE RIGHTS AND INTERESTS AND DEVELOPMENT

CASE STUDY

The Launch of “Safety Eye Platform”

In 2022, our Company made several breakthroughs in the digitalization of safety and environmental protection systems,
monitoring automation, smart warning, and other areas. The test run of our self-developed “Safety Eye Platform” has been
launched officially to digitalize the product management and safety supervision processes for our oil, gas and new energy
businesses through smart technology and solutions.

The platform focuses on the smart identification and active warning of employee misconduct, and aims to strengthen
supervision, control risks, reduce costs, and increase quality and efficiency. At present, we have carried out the construction of
demonstration projects at the Oil, Gas & New Energies Branch, Changqing Oil Field, Southwest Oil and Gas Field, and Dagang
Oil Field. We have completed the onsite deployment and application of smart video analysis of 36 types of scenarios.

Implement a safety qualification


screening system for suppliers/
PetroChina Supply Encourage management personnel

contractors Chain Safety of suppliers/contractors to earn


Management certifications
Establish safety performance records
Process Provide trainings on system
Regularly publish the list of qualified
development, HSE system auditing,
suppliers/contractors, and remove
safety management and emergency
unqualified suppliers/contractors from Strict
Capacity response etc.
the list in a timely manner screening
building
process

Establish a safety performance evaluation


system
Strictly require suppliers/contractors to
Carry out safety capability assessment, Evaluation
Process fulfill their responsibilities in supervising
daily safety performance evaluation, and
control workplace safety, based on the principle
and comprehensive safety performance assessment
that “whoever awards a contract or
assessment
employs workers should be held
Hold violators of national safety production responsible”
laws, regulations and contracts strictly
Conduct targeted inspections
accountable
on suppliers'/contractors’ safety
Terminate the contracts of suppliers/ management
contractors that have failed to pass the
safety performance evaluation

Enhancing Security Capability


The safety of our employees has always been the top priority in our operations. We
remain committed to a people-first, prevention-oriented, symptoms-and-root-causes-
tackling, and safety-safeguarding philosophy to comprehensively enhance our
operation safety level, ensure the safety of our employees, and the stable operation of
our oil and gas production businesses.

77
PetroChina Company Limited
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

Our Company strictly abides by the relevant laws and regulations and safety standards of China and other countries where
our overseas projects are located. We have formulated special emergency plans to address security issues, regularly conduct
emergency drills, enhanced employees’ security awareness through education and trainings, and established and promoted
the regular operation of a joint meeting mechanism for performing security work. In addition, we have actively established
a security management system for our domestic businesses, formulated and issued the Design Guidelines for the Security
Management System Framework (Domestic Businesses), which sets out our strategic goals, clarifies the main points, workflow
and basic requirements for the preparation of system documents, incorporated security risk management and control
measures into the production and operation business management and control process and relevant system regulations
organically, to constantly enhance our risk prevention, control and management capability. We have also established an
overseas security prevention and management system, and constantly enhanced the system by revising the Regulations on
the Social Safety Management of International Businesses, and further developed our social security management system to
ensure the safety of employees in overseas projects.

Key Actions Related to Social Safety Management of Overseas Projects in 2022

Optimization of the safety management system of overseas communities

Revised the Regulations on Social Safety Management for International Operations and the Emergency Response Plan for Overseas Social
Safety Emergencies, and completed the amendment of the Social Safety Management System Documents (Version 2.0)

Enhancement of the safety risk management system of overseas communities

Improved the information collection, analysis and warning system for social safety risks
Promoted the vulnerability assessment of social safety management for key locations and key projects, rectified loopholes and problems,
and upgraded security measures
Established a unified and coordinated mechanism for risk warning and addressing emergencies

Conduction of safety education trainings for overseas employees

Organized training sessions on social safety management for international operations


Organized online training sessions on safety risk prevention for employees
Organized 156 anti-terrorist safety training sessions for expatriate staff throughout the year

Organization of social safety management evaluations for international operations

Conducted annual performance evaluations on social safety for international operations of overseas project companies

CASE STUDY

Safety Training Put into Practice in Emergency Scenario


During the Spring Festival, Esker, a PetroChina staff member, came across a drowning child when he was on vacation in Sanya,
Hainan. With the assistance of the local security guards, he performed CPR on the drowning child non-stop for 17 minutes and
saved the child from the verge of death.

In addition to his own courage and ability to stay calm, Esker’s proficiency in first aid knowledge and skills also played an
important role in his timely and effective rescue of the drowning child in the moment of crisis. PetroChina has always placed
great importance to employees’ safety trainings, where we equip employees with first aid knowledge such as CPR, and skills
for rescuing others and themselves. Onsite and practical scenarios are an important part of the trainings, for they allow us to
carefully examine an employee’s training results and practical knowledge. Through the trainings, our employees’ emergency
response skills have been effectively enhanced. As a PetroChina employee, Esker has transformed his first aid knowledge into
a vivid example of altruism and contribution to society.
For more details, please refer to our WeChat Official Account: https://mp.weixin.qq.com/s/UQM7rvDOfiID7d-OM8jucQ

78
EMPLOYEE RIGHTS AND INTERESTS AND DEVELOPMENT

EMPLOYEE We address our employees’ need for career development at different stages, paying
close attention to their career planning. We continuously improve the system and
DEVELOPMENT mechanism for talent cultivation, and optimize the environment for talent cultivation,
attach great importance to the construction of a resource system for talent cultivation
and provide a big platform for employees to develop their personal potential.

In 2022, we:

Formulated the Opinions on the Implementation of the Talent Development Plan During the 14th
Five-Year Plan of China

Thoroughly carried out the Implementation Plan for Vigorously Discovering, Nurturing and Selecting
Outstanding and Young Cadres

Improved the Management Rules on the Introduction of Overseas High-level Talents

Researched on and formulated the Action Plan for Building a Team of Leading Talents in Science and
Technology, and issued the Opinions on the Full-scale Implementation of “Opinions on Strengthening
the Building of a Team of Highly-skilled Talents in the New Era ”

Strengthening the Enterprise Through Talents


We regard talents as the most important resource for our Company’s development. We vigorously implement strategic
measures to strengthen the enterprise through talents, and focus on the nurturing, introduction, and utilization of talents,
optimize our management team, stimulate our Company’s creativity, and enhance the overall value of talents.

Our Company has strengthened its top-level design and continued to improve its overall plan to strengthen the enterprise
through talents. We have formulated system documents such as the Action Plan for Strengthening the Enterprise Through
Talents, the 2021-2025 Implementation Plan for the Strengthening the Enterprise Through Talents Project, the 2022 Operation
Schedule, and promulgated ancillary documents such as the Measures for Evaluating Human Resources Value (Interim),
and the Promotion Plan of the Special Project to Develop Talents for New Energies, New Materials, and New Businesses. In
2022, our Company comprehensively carried out more than 20 key initiatives, such as launching the “Year of Strengthening
the Enterprise Through Talents” activity, formulating and issuing the Q&As for Strengthening PetroChina Through Talents,
organizing lectures and business seminars on special topics, training sales and marketing talents, and organizing a training
program for young talents in science and technology. We have built a strong and large team of talents for our key business
areas, thus proving the effectiveness of our project of strengthening the enterprise through talents.

Special project for talent value


Special project for cadre building
enhancement

Special project for organization system


Special project for leader skills improvement
upgrading and optimization

Special project for new energies, new 10 Special Projects Special project for quality introduction
materials and new businesses development to Strengthen the of talents in science and technology
Enterprise Through
Talents Special project for converging wisdom of the
Special project for talent team succession
science and technology innovation team

Special project for gathering Special project for training and developing
internationalized talents skilled talents

79
PetroChina Company Limited
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

Employee Training
Adhering to modern enterprise training concepts, our Company has sought to tap the
potential of our human resources through the combination of “Internet + Training”
approaches. We have analyzed our talent demand and continued to develop training

15.10
million hours
methods to carry out diversified and differentiated vocational trainings for employees in
order to drive both employee and business growth through positive correlations. In 2022,
our Company issued the 14th Five-Year Plan for Staff Education and Training and conducted
more than 25,000 training programs consisting of more than 33,000 sessions of different
Total training time categories and levels, covering 100% of our employees.

In 2022, we:

Formulated and amended system documents such as the


Conducted
37.9
Management Measures for Online Training, the Management
basic education Measures for Trainers, the Management Measures for the
and training
hours Standardized Evaluation and Certification of Managerial Positions, to
management
improve our Company’s education and training system such that it
becomes a fully-fledged system and meets scientific standards

Average training time Strengthened research and exploration of topics and theories
per person such as the Construction of a Standardized Training System for
Managerial Positions and the Evaluation of the Effects of Training
Internationalized Talents on the Internationalization of PetroChina
and Relevant Suggestions

Formulated the Evaluation Criteria for Education and Training Work


and the Evaluation Criteria for Training Institutions, to conduct full-

100 % coverage evaluation and assessment on training institutions

Established a standardized training system for managerial


Established a positions that meets the jobs requirements and career
standardized development needs of employees
Employees trained coverage
manager training
system Established a learning and development mechanism based on the
philosophy of “job seekers need certifications, the employed need
skills, and promotions need qualification”

Enriched and improved our training system and database, and


established a professional team of operators consisting of 500

25,000+ Jointly
experts with different expertise and levels

organized Strengthened efforts to nurture talents jointly with top universities


training in China
events
Training projects
implemented
throughout the year

Staff Training Highlights in 2022

Established the National Academy for Outstanding Engineers and conducted the joint nurturing
of engineering masters and PhD graduates

Conducted training sessions including legal compliance, marketing skills enhancement, and
businesses related to financial derivatives, with over 18,000 attendances

Hosted a series of 10 professional and technical lectures related to new energies and new
materials, carbon emission peak and carbon neutrality and other topics

Implemented a three-year basic training programme and an intensive training programme for
new employees

80
EMPLOYEE RIGHTS AND INTERESTS AND DEVELOPMENT

We improve employees’ vocational skills and professional abilities through the combination
of trainings and contests including the pre-employment training camp, technical skills
competitions, and vocational skills competitions. Through these activities, we promoted the
development of frontline employees and tested the results of our basic training programme.
In 2022, our Company organized and participated in 9 vocational skills competitions at all
levels. In competitions at the company level and above, our employees won 41 gold medals,
71 silver medals and 111 bronze medals.

In 2022, we hosted/organized/participated in:

PetroChina’s First Pre-Employment Training Camp

PetroChina’s first Technical Skills Competition

PetroChina’s first Technical Skills Competition for Firefighters

The Professional Technical Competition on the Dynamic Analysis


of Oil Reserves

The 2022 Online Skills Training Event for the Oil and
Petrochemical Industry

CASE STUDY

Pre-Employment Training Camp


On May 9, 2022, our Company launched the 6-week Pre-Employment Training Camp. The activity was a pre-employment
training course mainly targeted to the 210 students who had entered into employment contracts with 18 oil refining
companies under PetroChina. Forging collaboration among the industry, enterprises, and schools, the camp focused on
nurturing skilled talents through succession-oriented trainings to fill in vacancies in short-staffed oil refining companies to
precisely replenish their talent reserves. After the training, the students’ knowledge was tested in the second PetroChina
Cup, a competition for chemical technicians from vocational schools that was jointly organized by PetroChina and the China
Petroleum and Chemical Industry Association. In the competition, the participants’ problem-solving skills, teamwork skills, and
overall qualities were put to test, so as to motivate outstanding students and improve their skills through contests.

Skills Training Event for the Oil and Petrochemical Industry


In June 2022, our employees actively participated in the 2022 Online Skills Training Event for the Oil and Petrochemical
Industry hosted by CNPC. 61,000 skilled operators from the domestic oil and petrochemical industry participated throughout
the event. The scale, scope and number of participants were the largest ever among our job training activities held in the past.

For the first time in history, this event was jointly organized by multiple enterprises within the industry and realized a cross-
enterprise exchange of talents and sharing of resources such as question banks. Through the Skills Training Event, frontline
staff members further consolidated their basic knowledge and business skills, overcame shortcomings, and enhanced their
understanding and mastery of new technical standards and requirements in the industry. This allowed us to determine the
direction and basis for future skills training programs, provided a solid foundation for in-depth exchange and collaboration
among enterprises and created a new way for enterprises to enahcne their skills.

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PetroChina Company Limited
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

Unimpeded Career Development Paths


We attach great importance to the career planning of employees and endeavor to expand their career paths to help them
realize their self-worth. With a corporate culture that values moral integrity as well as professional competence, we have
developed a selection process that is democratic, open, competitive, and merit-based and also established and improved the
talent development mechanism in order to create a positive atmosphere that enables the recognition and best use of talent.

In 2022, our Company focused on building strategic scientific and technological strengths, implemented key Special Projects,
and continuously cultivated key talent teams such as leaders in science and technology, a scientific and technological
innovation team, young talents in science and technology, and a team of outstanding engineers. We formulated and issued the
Implementation Opinions on the Further Improvement of the Seniority System for Professional and Technical Positions and
systematic regulations on the management, selection, and recruitment of senior experts, to create a reformed “2+3” seniority
system for scientific researchers in professional and technical positions. In addition, we implemented target measures under
the Implementation Plan for Vigorously Discovering, Nurturing and Selecting Outstanding and Young Cadres, enriched and
made timely updates to our talent pool of young managers, to increase the number of young managers in our workforce.
Moreover, we also made improvements to the dynamic adjustment mechanism of job positions, the evaluation and selection
mechanism, the remuneration and incentives mechanism, to provide an unimpeded and stable career path for employees.

By the end of 2022, we had

3 were elected members of the


Chemical Industry and Engineering 23 Academicians of the Chinese Academy of Sciences and the
Chinese Academy of Engineering
Society of China

360
2 won the China Skill Award
1 was recognized as an individual Experts entitled to the Special Government Allowance
with outstanding contributions to
China’s Cultivation of Skilled Talents
7 won the National Technical
Experts Award 297 Senior Experts

92 Skilled Expert Studios, including 28 National Skilled Expert Studios

CASE STUDY

Training Programme for Young Talents in Science and Technology

In May 2022, the Company promulgated an implementation plan to fully execute its Training Programme for Young Talents in
Science and Technology.

Under the Programme, we highlighted the importance of innovative approaches, strengthened our recruitment management,
and distributed talents reasonably across professional fields, mainly with a focus on geological exploration, oil and gas field
development, oil and gas well engineering, petroleum refining, petrochemical operation, physical prospecting, well logging and other
key professional fields, as well as other emerging strategic fields such as new energies, new materials, and the latest information
technology trends. We also put more effort on the dynamic adjustment of talents. We built a pool of talent reserves to constantly
keep track of our talent pipelining activity. Focusing on sourcing talents, we encourage our business departments to actively consider
worthy college candidates from the Outstanding Engineering Education and Training Programme and conduct advanced “tailor-made
talent trainings” in core technological fields and production technology needs.

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EMPLOYEE RIGHTS AND INTERESTS AND DEVELOPMENT

LOCALISATION We embrace a respectful, open and inclusive culture and we are committed to
“selecting more local talents who live close to our overseas operations, upgrading their
AND DIVERSITY professionalism and making them more responsive to market forces”. We abide by all
laws and regulations of countries where our operations are located. We have formulated
the Measures for Administration of Local Employees in Overseas Operations, promoted
the innovation and practice of overseas labor management, and established an optimal
system for recruitment, deployment, performance appraisal, incentives and penalties.
We work hard to attract and train top local talents and to provide them with a working
environment conducive to their career development.

Local Hiring in Overseas Operation


We actively recruit and train local employees and do not discriminate against outstanding

96.69% local candidates, providing local people with job opportunities. Professionals employed in
our overseas projects involve multiple disciplines, such as exploration and development,
refining and chemicals, pipeline operation, international trade, finance, accounting, and
human resources management. With continuous efforts, our Company has gradually
Percentage of foreign established localized, regionalized and internationalized career development channels,
employees in overseas and many local employees have entered management positions. In 2022, foreign
projects
nationality employees accounted for 96.69% of our overseas workforce.

Cultural Integration
We fully respect cultural diversity and local customs. We create an environment of
multicultural integration, promote communication and exchanges between employees
with different cultural backgrounds and respect for different values and traditions, in
order to foster cross-cultural collaboration in a culturally diverse workplace.

CASE STUDY

Creating A Diverse, Equitable and Inclusive Corporate Culture

In 2022, a series of activities were organized by our project company in Canada to respect local cultures and promote cultural
integration, with an effort to create a diverse, equitable and inclusive corporate culture.

We established the Diversity, Equity and Inclusion (DEI) Committee, which organized DEI trainings for all employees

On Canadian and traditional Chinese holidays, we strived to promote festival culture, organized traditional cultural events and encouraged
employees to actively participate in the events

We celebrated the National Indigenous Peoples Day and showcased our Company’s efforts in building harmonious relationships with indigenous
peoples and promote community development

We participated in the dragon boat race hosted by the Calgary Dragon Boat Society

We organized a virtual Great Wall Marathon to promote employee health

We invited employees and their family members to the Calgary Zoo to


celebrate traditional Canadian festivals

We organized an activity titled “Live Well”

83
SOCIAL CONTRIBUTION
Rooted within society, PetroChina has a duty to
return. Our vital goal is to promote socioeconomic
development, so we attach great importance to the
well-being of people and social advancement. We
enhance local development capabilities and fulfil
product social responsibility. We actively participate
in activities such as rural revitalization, poverty
alleviation, community building, environmental
protection and social welfare. Through our efforts, we
strive to build a harmonious society.

The UN Sustainable Developmen Goals


PetroChina Company Limited
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

COMMUNITY We strive to have a positive impact on community development through responsible


operations. This impact can be reflected not only in the creation of jobs, tax contributions
IMPACT and business opportunities for local suppliers/contractors, but also in reducing the

MANAGEMENT
environmental and social impact of production and operation activities on communities,
safeguarding the human rights of community residents and facilitating local self-
development capabilities.

Management of Our Community Impact

Key Measures Specific actions

We set up environmental protection and community relations coordination


agencies in many countries and regions and established a variety of forms
Enhancing of communication with local governments, non-governmental organizations
community and community representatives.
engagement We published corporate information through various channels, continuously
enhanced engagement with communities and handled community
complaints properly.

Prior to project commencement: we specified a reasonable scope of our


production and operation activities to avoid causing any adverse impact on
the community and other stakeholders, assessed local community needs,
human rights protection, natural environment, cultural heritage and other
social, environmental and economic impacts to protect the legitimate rights
and interests of community residents.
Project full cycle During project implementation: we strictly implemented safety and
management
environmental protection procedures; formulated environmental
protection management system participated by stakeholders; implemented
environmental impact monitoring throughout the project; and maintained
good interaction with the community and other stakeholders.
After project completion: we restored land surface as soon as possible as
we strive to protect the local ecological environment.

We formulated a framework for developing and maintaining a harmonious


relationship with aboriginal communities located in our asset project and
site areas, understanding the grievances of local community residents and
protecting their rights.
We invited surrounding residents and social environmental protection
volunteers and professionals to visit our sites, learning about and supervising
Community our environmental protection efforts.
human
rights We gave priority to hiring local talents, provided skills training and involved
protection local talents in project construction to increase community income.
Relying on local social resources, we made efforts to support local enterprises,
attached great importance on purchasing local products and services,
strengthened cooperation with local enterprises in technical services and
promoted the development of relevant small and medium-sized enterprises.
We strictly controlled human rights risks posed by overseas security contractors.

We rationally planned community investment projects in light of local social


and economic development planning and the needs of community residents.
We engaged in good neighbor initiatives, supporting community capability
Participating building projects, investing in environmental, healthcare, education and
in community
public facilities projects for community welfare and monitored the progress
investment
and implementation of public welfare projects.
We regularly evaluated the performance of social welfare projects and made
necessary improvements.

86
SOCIAL CONTRIBUTION

Actual cases

In Iraq, our West Qurna subsidiary established a Public Relation & Socioeconomic Section. Based on its general business and operation
features, we identified and understood various interests, grievances and expectation of major stakeholders, including shareholders,
partners, government organizations, the local community, NGOs, media, employees, suppliers/contractors and the general public,
established effective engagement and communication systems and dispute resolution mechanisms, responded to their expectations and
grievances in a timely manner, ensuring that we can achieve win-win development together based on shared goals and expectations.
For details, please refer to the section titled “Overseas community construction”.

In Iraq, our Rumaila subsidiary formulated compensation and project management policies in relation to community impact. Our goal
is to achieve harmony between the development of oil field production and operation activities with the local community. Relevant
activities were reorganized and integrated into the production plans of relevant departments.
In Australia, our subsidiary Arrow Energy Ltd. engaged with stakeholders from predevelopment stage of gas fields, fully considering the
interests of stakeholders such as farm owners. We conduct one-on-one communication with land owners during planning to come to an
agreement on the locations for infrastructure such as wells, pipelines and roads, in order to minimize the impact on the relevant land.
For projects in operation, we listened to grievances and concerns of farm owners on a continuous basis, provided fair compensation and
actively communicated with the community as we maintained openness and transparency.
For details, please refer to the section titled “Overseas community construction”.

In Kazakhstan, we hold public consultations for our oil and gas partnership projects to obtain feedback from stakeholders. In 2022, the
PK Company held two rounds of consultations regarding the licenses for environmental protection and waste treatment of our gas fields,
inviting government regulatory bodies, NGOs, media, community residents, independent media and bloggers to participate. Together, an
understanding was reached and the relevant government environmental protection emissions license was obtained. Our Shymkent refinery
subsidiary held an environmental protection public consultation, inviting surrounding residents and social environmental protection volunteers.
and professionals to visit our plants and site areas, in order to understand our progress made in environmental protection measures.
In Kazakhstan, the PK company has formulated a Complaint Hotline Policy and Procedures to establish channels and handling
mechanism for employees and third parties to file anonymous complaints. We implemented a system to protect whistleblowers and
established effective channels for the community to file complaints directly to management.
In Iraq, our Rumaila subsidiary places great emphasis on professional ethical training for our security contractors. Ethical standards,
expected conduct, international standards of conduct and standards for use of force are integrated into the core training program for
security personnel.
For details, please refer to the section titled “Overseas community construction”.

We actively responded to China’s rural revitalization strategy. Together with our parent company, CNPC, we contribute our efforts in rural
revitalization based on five focus areas of industry, talent, culture, ecology and consumption.
In Iraq, our Rumaila subsidiary cooperated with the AMAR International Charitable Foundation in Basra to provide comprehensive social
responsibility support to the local community. We completed and launched various community building projects such as the QA water
treatment plant medical clinic and Al Khora community woman’s professional skills training program.
For details, please refer to the sections titled “Social and community welfare investment” and “Overseas community construction”.

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2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

Major Mechanisms and Measures for Enhancing Community Engagement

The Company complies with Free, Prior and Informed Consent (FPIC) principles,
establishing various engagement mechanisms with local governments, NGOs
and community representatives to conduct active communication and to
ensure that the rights of locals are respected.
Formulate, comply with and implement customized standards and management
regulations on maintaining relationships with local communities based on the conditions
of the place of our operations

Establish environmental protection and community relationship coordination agencies to


ensure normalized smooth communication channels

Convene regular meetings with government officials, local companies and community
representatives, communicate and manage relationships with stakeholders and address
pressing concerns of local communities

Hold topical conferences or consultations with local communities in the event of major
incidents affecting the community, in order to identify together relevant risks and
opportunities to the community and discuss resolutions

Actively fulfil disclosure obligations, formulate notification procedures for major events
and emergencies for timely publication of relevant information to local communities

Formulate community relations complaint handling mechanism, properly handle complaints


from the community, provide timely feedback and protect identity and safety of complainants

Organize company open day and actively participate in local social cultural events to build
positive and friendly relationships with local communities

Major Measures to Ensure Contractors' Protection of Human Rights

Observe relevant standards and laws of the places of our operations on human rights
and controlling violent confrontations, formulate company human rights protection
policies and management and implementation methods and require compliance and
implementation by security contractors

Conduct due diligence to assess human rights protection competence of security contractors

Regularly engage with security companies or personnel to understand and address issues
encountered in security work as well as their grievances and resolve such issues and
grievances through timely negotiations

Strengthen professional ethics education, indoctrinate professional ethics throughout


the entire training program for security personnel and established professional ethics as
priority criteria in evaluating personnel calibre

Conduct human rights protection training for security contractors as well as education on
legal issues and warning measures

Improve management of standards of security contractors through conducting audits


and evaluations of security contractors and monitor the implementation of human rights
protection policies

Maintain a strong stance against violence, prohibit violent and inhumane treatment of local
employees and residents

88
SOCIAL CONTRIBUTION

SOCIAL AND PetroChina has actively responded to the initiatives of the UN 2030 Agenda for
Sustainable Development. In an era dominated by the issue of shared wealth, our
COMMUNITY goal is to help local communities develop sustainable growth capabilities through our

WELFARE community welfare endeavours, in order to build a bright new future and accomplish
shared of social values.

INVESTMENT
Poverty alleviation

RMB 302.74 million

Other charitable
expenditure Our total contributions Education donation

45.30
RMB to public welfare around

175.54
the world in 2022
RMB million
RMB

582.72
million

million

Environmental protection Disaster relief

RMB 7.81 million RMB 51.33 million

The company focuses on areas such as industry, talent, culture, ecology and consumption. We carried out poverty alleviation
based on local conditions and followed up with rural revitalization, thus allowing designated poverty alleviation regions to improve
self-sustaining development capabilities and promote local economic sustainable development. In 2022, we joined efforts with
our parent company, CNPC, to launch several initiatives with the goal of stimulating development in poverty alleviation regions
and motivating poverty alleviation groups. Such initiatives include building “Happy Villages”, launching the featured local industry
promotion initiative, establishing “Rural Revitalization Workshop”, empowering through consumption and caring for elderly and
children. During 2022, we undertook 1,080 rural revitalization projects, benefitting over 5 million people.

The Company partners with various sectors of society in active participation of charitable work by making use of its brand
influence, creating charity models, utilizing its platform and bringing together different advantages and resources. We have
launched over 360 charitable programs both on our own and with our partners.

360+
Number of charity projects
of our own initiative or in
partnership

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2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

Building Sustainable Development Capabilities


Promoting industrial growth is fundamental to addressing the problem of economic backwardness in underdeveloped
regions. PetroChina actively undertakes community projects in agricultural products processing, unique rural industries, rural
recreation and tourism industries and rural new service industries. We implement localized policies, heavily invest funding,
manpower, materials and technology to facilitate agricultural industrialization and integrated development of agricultural
industries, promote rural innovation and development. By combining our own general advantages and local resources and
advantages, we helped rural communities improve their capabilities in industrial and business operation, allowing them to
increase their income.

In 2022, the Company launched the featured local industry promotion initiative. We leveraged local resources and natural
advantages, strengthened standardization, industrialization and brand development, helping to build unique industry chains
such as rural tourism, agricultural and pastoral production and processing.

For more details, please refer to the feature on "Five major initiatives to promote rural revitalization".

Skills Training
Raising the skill levels of the local population is essential to achieving sustainable development in underdeveloped regions.
PetroChina makes use of our advantages in resources to provide and create employment opportunities, build employment
platforms and launch various skills training programs, in our efforts to provide specialized training to address the
requirements of different regions and talents. By raising the population skill level, we motivate and help the local population to
find employment and start businesses.

The Company has established a “Rural Revitalization Workshop”, an online platform to help promote intellectual development.
We launched various targeted training programs to motivate all talents to prove themselves in the great vastness of the
rural areas. We expanded cooperation channels, formulated over 300 sessions on rural revitalization and specialist skills,
established online and offline integration mechanism and accomplished digitalization empowerment training. Our platform
trained 197,000 people during the year.

Education
Promoting education is key to ensuring that basic development opportunities are 22
consecutive
available to people in underdeveloped regions. From improving education environment
years
and quality and teacher training to fostering good family environment, PetroChina makes
use of our own social influence and network to establish specialist schools, innovate
student support models and connect various forms of education resources, to help Scholarship program

youths in underdeveloped areas access equal education opportunities and to promote


social concern as well as joint efforts in addressing the issue of fair education.

As part of our efforts to address issues such as education imbalance in “poverty


RMB
alleviation” regions, PetroChina continued its “Teacher Training Program” for the 8th
consecutive year, which focuses on improving the capabilities of teachers in these
regions. In 2022, we helped to train over 20,000 education workers in 10 of these
4.47
million
regions. We provided student grants and scholarships to high school students with
family economic difficulties, helping them to complete their studies and achieve their
Amount of scholarship provided for
dreams of further education. In 2022, our “Xuhang Program” donated RMB11 million
685 excellent university students in 17
and opened 19 “Xuhang” classes in 19 schools across 8 provinces as well as provided higher education schools including the
grants to support 950 academically excellent students with economic difficulties. China University of Petroleum in 2022

90
SOCIAL CONTRIBUTION

Healthcare
Improving healthcare standards is essential to eliminating potential public health risks in underdeveloped regions. Our
Company takes an active role in improving clinic infrastructure and healthcare employment conditions in rural townships
in remote regions, strengthening the abilities of healthcare professionals, conducting mobile clinical visits, raising general
awareness of health and sanitation knowledge, promoting higher standards of local healthcare services and healthy lifestyles,
striving to explore innovative ways of healthcare assistance and actively encouraging participation of other social forces to
provide healthcare insurance and subsidies for treatment and rehabilitation of serious cases to families in difficult economic
conditions in order to alleviate their burden.

In 2022, our Company participated "Kids Care" program initiated by CNPC, the China Foundation for Rural Development and
the Ant Foundation, integrating healthcare management, rural revitalization and internet charity. Supporting the project with
RMB15 million of our funds, we attracted another RMB15 million donations from the general public, which went towards
helping 130,000 children in poverty alleviation regions access insurance for critical illnesses, so that they would not return
to poverty in case of illnesses. We partnered with professional organizations to launch an “Internet + healthcare” project to
provide remote consultation for over 3,600 patients across six counties in Xinjiang, so that they would not have to travel long
distances for treatment, and at the same time provided targeted training for over 5,200 healthcare professionals in provincial
hospitals and village clinics to raise healthcare standards.

Staff Volunteer Projects


The Company encourages our employees to demonstrate the volunteer spirit of
contributing, caring, helping and progress. We established a youth volunteer service
team for our employees, which has participated extensively in poverty alleviation,
8,613
Youth volunteer service
community building, environmental protection, emergency response, disaster relief and teams
community welfare activities.

As of the end of 2022, the Company has a total of 8,613 youth volunteer service teams
consisting of 105,400 youth volunteers who participated in 22,801 volunteer service 105,400
Number of youth volunteers
activities. In the sixth national youth volunteer service project competition, the Changqing
Oilfield’s “Buckwheat flower” youth volunteers caring for stay-home children, poverty
alleviation and education support program, as well as Lanzhou Petrochemical’s voluntary
community home appliance repair service received silver awards, while Huabei Oilfield’s
22,801
Number of volunteer service
milk and beverage paper-based carton recycling environmental protection welfare
activities in 2022
program and Lanzhou Petrochemical’s “Green bank” voluntary community program
received bronze awards.

CASE STUDY

Changqing Oilfield “Buckwheat flower” Youth Volunteer Program


Since 2012, the Changqing Oilfield “Buckwheat flower” volunteer service team has participated in care and material support
programs for Dingbian county Zhangyaoxian schools for 11 consecutive years. From simple donation of materials in the
beginning, the team slowly bonded with the rural children to provide companionship, education and guidance over the past 11
years. The volunteers helped to plan “Life Lessons”, established the “Buckwheat flower” scholarship fund, organized campus
arts and culture festivals, celebrated birthdays and childrens’ day, and visited the elderly residing with stay-home children, in
order to bring warmth and joy into the lives of children. Meanwhile, Changqing Oilfield makes use of its own advantages, using
materials left over from production and daily usage to help schools improve education environment, changing heating systems
to ensure that there is winter heating. The Changqing Oilfield “Buckwheat flower” Youth Volunteer Program has supported
a total of 1,243 impoverished students, gifting over 1,100 sets of stationery, over 2,400 books, as well as tables and chairs,
mattresses and materials of over RMB600,000 in value.

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2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

Five Major Initiatives to Promote Rural


Feature Revitalization
We actively respond to China’s rural revitalization strategy. Together with our parent
Company, CNPC, we make full use of our Company’s business advantages, incorporate
resource characteristics of regions receiving aid and contribute our efforts in rural
revitalization based on five focus areas of industry, talent, culture, ecology and consumption.

Promoting Industry Revitalization


We launched the featured local industry promotion initiative in 10 designated assistance counties in
combination with natural resources of the assistance areas. To address food security, we supported

1,080
the building of corn drying plants and smart granaries in Nilka county and Jemina county in Xinjiang in
order to build strong food security. We expanded industry chains to help enrich local populations.
We supported the building of feedstock factories in Qinggil county, Xinjiang and continued to establish
an integrated industry chain consisting of forage planting, feedstock production, livestock farming, Rural revitalization
slaughtering and processing and product sales. In Fan county, Henan, we supported the building of projects undertaken
a forestry and flower farm project, promoting standardization and marketization of flower farming.
We supported the development of rural tourism, assisting the development of rural terrace field
homestays in Hengfeng county, Jiangxi. We helped to develop rural tourism and recreational agriculture
models based on local conditions, building an ecological model of development integrating primary,
secondary and tertiary industries. We facilitated employment in poverty alleviation regions. We
supported preferential employment from designated assistance counties for building and operating of
our projects and local enterprises. In 2022, we helped 4,326 people from 10 counties to obtain migratory
employment with our Company recruiting 529 impoverished people.

RMB
Promoting Talent Revitalization
400+million
In 2022, our Company supported over 200,000 people in the training of cadres, rural revitalization
leaders and professional technicians, contributing to a strong talent base for the rural revitalization Investment in rural
movement. PetroChina built a “Rural Revitalization Workshop” Platform. We invested dedicated revitalization in 2022
funds to establish our own training platform “Rural Revitalization Workshop”, engaging professional
organizations to formulate training programs based on a scientific and target-based approach. We
launched various training models. We adopted centralized teaching, mobile rural schooling and live
streaming to expand coverage of our training programs, stimulating interest in both online and offline
training programs through targeted adjustments and establishing specialized courses. We also sought
to promote interest in the oil and gas profession. We established specialized programs for nurturing
future oil and gas industry workers, recruited 100 high school graduates across six designated assistance
regions in Xinjiang, integrating general and specialized education and providing priority employment
opportunities in the petroleum industry.

Promoting Culture Revitalization 5+


million
People benefited
We leveraged local cultural advantages and well-preserved traditions to promote civilized, positive and
simple rural lifestyles. In-depth exploration of traditional culture. We supported two rural tourism
assistance demonstration programs in Fan county and Taiqian county, Henan. With in-depth exploration
of Central Plains and Yellow River culture and values, we promoted lifestyle and customs changes and
facilitated the development of the homestay economy and unique culture industry. Fostering rural
spirit and civility. We established “heritage learning points” in Xishui county, Guizhou and Hengfeng
county, Jiangxi. We organized over 600 thematic cultural events in Xinjiang to help enrich the lives and
experiences of the general public.

92
SOCIAL CONTRIBUTION

Promoting Ecology Revitalization


In response to China’s five-year plan on improving living conditions in rural areas, we contributed our
efforts towards organic integration of infrastructural assistance, improving living conditions in rural areas
and environmental protection. We continuously improved living conditions. We implemented the
“Model village for improvement of living conditions” project. In 2022, we launched our own initiative to build
“Happy villages” in 10 counties, conducted domestic refuse and sewage treatment in 76 villages, remodeled
toilets for over 2,000 homes and devoted efforts to greenify and beautify villages. We contributed efforts
towards emissions reduction, carbon sequestration and green infrastructure. We supported “carbon
emission peak and carbon neutrality” projects such as the establishment of forest reserves and carbon
sequestration research in Qapqal Xibe, Xinjiang, with the purchase, planting and maintenance of 10,000
mu saplings, creating employment opportunities in ecological and forestry maintenance and facilitating
rural green development. We helped rural areas develop ecological function potential. We supported
water saving irrigation projects in dry, unproductive and wasteland areas. We helped to transform 20,000
mu of Gobi desert into arable farmland through an integrated fertilization and high efficiency water saving
irrigation project in Qinggil county, Xinjiang. We helped to build a rare plant conservation area and a crop
rotation demonstration project in Xishui county, Guizhou, in order to create local ecological value. We
also worked to protect biodiversity. We launched a beaver offspring conservation program in Qinggil
county, Xinjiang, as part of our efforts to achieve organic integration of scientific education, protection
of endangered animals and increasing rural income and build a demonstration of peaceful coexistence
between man and nature.

Increasing Consumption Assistance


PetroChina fully supports the “consumption assistance empowerment initiative”. Throughout 2022, we
conducted purchases of RMB444 million worth of products and facilitated sales of RMB756 million worth
of products under the assistance initiative. We made use of our internal market to expand our efforts
in bridging production and sales of assistance products. We published a catalogue on consumption
assistance products which contains a selection of over 3,000 products from close to 300 poverty alleviation
counties, encouraging our employees and subsidiaries to increase efforts in purchasing consumption
assistance products from designated assistance counties. We implemented a series of measures
to expand sales channels of products from assistance counties. We set up dedicated “sections for
consumption assistance products” in our gas station convenience stores and non-oil products online sales
platform, organized live stream marketing competitions which focused on recommending unique assistance
agricultural products and distribution across China through our network of over 20,000 service station
convenience stores. We leveraged our access to quality resources to build unique brands. Making
full use of our access to non-oil products, we promoted regionally unique quality products such as Barkol
melons, Nilka honey and Jeminay flour by helping assistance regions build regional brands, facilitating
industry upgrading and enhancing recognition and impact of assistance products.

CASE STUDY

Rural Welfare Service Stations


As a major agricultural country, spring planting and fall harvesting are peak seasons for agricultural
machinery fuel consumption in China. For years, our Company has considered securing agricultural
machinery fuel as an area of focus. We implement service measures such as priority, concessionary and
quality supply of oil to ensure that agricultural production can be conducted smoothly during significant
farming periods.

In 2022, PetroChina established a total of 5,529 rural welfare service stations with 6,978 priority pumping

lines for agricultural machinery and 6,370 dedicated pumps for rural welfare, supplying a total of 1.323
million tons of agricultural machinery fuel. We also set up resting areas for agricultural machinery operators,

provided fuel delivery services to farmlands and organized 60,800 fuel delivery trips.

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OVERSEAS We maintain our vision of “cooperating in development to achieve win-win for all” in
conducting international cooperation. We respect the cultures and conventions of the
COMMUNITY countries in which we operate, and we are committed to establishing long-term and stable

CONSTRUCTION
cooperative relations with the host countries. We take an initiative to incorporate our
development into local socioeconomic growth and create economic and social value to
jointly promote the development and prosperity of local communities together with host
governments and business partners.

We actively participate in overseas community construction

Comply with all applicable international and local laws that related to community affairs and
social responsibility and dynamically adjust our Company’s policies and procedures to comply
with the relevant laws and regulations

Respect, defend and protect human rights and respect local customs and cultural traditions

Conduct all activities in an ethical, fair, transparent and responsible manner, and commit to the
protection of local ecological environment to promote social development

Formulate community development plans and carry out relevant activities to continuously improve
the well-being of local people and promote harmonious development of the community

Notify the community prior to the implementation of the community development projects,
regularly assess the results and make necessary improvements

Provide the stakeholders with timely information about the projects and activities relating to
community construction and call on all employees to participate in such activities

Promulgate our Company’s ESG philosophy and policy to our suppliers/contractors and
encourage them to actively participate in the implementation of projects and activities relating
to community development

Protecting the Local Environment


We strongly believe in the importance of striking a balance between business
development and environmental protection. Therefore, we strictly comply with the
environmental protection laws and regulations of countries where we operate and
international standards on environmental protection and carefully protect the local
ecological environment and historical and cultural heritage during operations.

CASE STUDY

Protecting Local Water Resources in Australia

In Australia, Arrow Energy Ltd. complies with the local Petroleum and Gas (Production
and Safety) Act and the Water Act, strictly monitoring and controlling discharge,
wastewater treatment and recycling. Arrow Energy Ltd. has established a groundwater
monitoring network to survey and assess groundwater levels and monitor changes
in water quality on a regular basis. It prepares underground water impact reports
to actively disclose the conditions of groundwater to land owners,government,
environmental organizations and other stakeholders. Arrow Energy Ltd. has also
established a community committee and provides purified extracted water to local
farmers for free, thus maximizing the use of groundwater in coal seams and avoiding or
minimizing impact to the local environment, society and economy.

94
SOCIAL CONTRIBUTION

CASE STUDY

Actively Responding to Chad’s Tree Planting Program

Our Company actively responded to the tree planting program promoted by the
government of Chad. We signed a cooperation framework agreement on the tree
planting project with the Chad Ministry of Environment to participate in tree planting
projects in three provinces and cities including N'Djamena.

In the first stage of the tree planting program, 300,000 trees will be planted in a
300-hectare green belt zone surrounding N'Djamena. Currently, 200,000 saplings
including neem and African mahogany have been planted.

Community Investment
We take an active role to help improve the production and living conditions of local residents. Every year, we provide support
to our surrounding communities in aspects such as environment, healthcare, education, public facilities and community
activities based on their actual needs, as part of our active efforts to fulfil social responsibility. We actively participate in
community welfare programs of our surrounding communities, allowing them to share the fruits of our development, so as
to maintain a long-term harmonious relationship with the local community and facilitate the sustainable development of the
community.

Kazakhstan Canada Australia

We organized a greenification We invested in various areas of community welfare, We participated in


campaign with communities such as healthcare support, environmental protection the investment and
surrounding our Shymkent promotion, housing plans, skills and employment establishment of the
refinery, planting 500 elm and training and social security University of Queensland
acacia saplings We sponsored education programs for endangered Centre for Natural Gas and
We donated widely to charities animals by the Calgary Zoo, which educates young sponsored the university’s
and community welfare visitors on protection of endangered animals and the Wonder of Science
organizations in Kyzylorda environment program

In 2022, we conducted various public welfare programs in overseas communities

Iraq Oman

We launched support programs in 14 communities near our West Qurna We participated in various projects including
project to promote local sustainable development in health, education, community education infrastructure construction,
infrastructure, culture and sports improvement of local community healthcare
We helped to clear explosives left over from conflicts in the region facilities for the socially vulnerable, environment
improvement, assistance for students with
We launched a community building initiative in areas surrounding our
difficulties, support for sporting events and
Rumaila project, which includes various projects on community woman’s
competitions, assistance for people suffering from
professional skills training, mobile clinics, professional training for the
cancer and severe illness
unemployed, oil field community power grid upgrading and school
furniture refurbishment In 2022, we were recognized by the Omani Ministry
of Social Development with an award of honour for
social development and support

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CASE STUDY

Partnership with the University of Queensland

In Australia, Arrow Energy Ltd. participated in the investment and establishment of


the University of Queensland Centre for Natural Gas, which offers subjects related
to coalbed gas including economics, business, petroleum engineering, earth science,
ecology and social science, in term providing continuous technological support for
project development. Since 2014, Arrow Energy Ltd. has sponsored the university’s
Wonder of Science program, providing learning guidance on science, technology,
engineering and mathematics (STEM ) subjects to students from the Bowen and Surat
basins. Currently, the project has organized 13 academic conferences with participation
of over 1,300 teachers and students.

13 1,300+
Number of academic Number of teachers and
conferences organized students participated

Promote Localization
We proactively promote localization, strictly comply with local laws and regulations in
the places of our operations, observe tax transparency, encourage local hiring, prioritize
procurement and usage of local products and services, in order to provide opportunities
for local suppliers, contractors and service providers to participate in our projects and
to support the development of local small and medium-sized enterprises as well as
community entrepreneurs.

Tax Payments According to Law


Our Company strictly complies with the laws and regulations in the countries where
it operates, pays taxes to local governments according to law, and duly contributes
to the development of local economies. In countries where the Extractive Industries
Transparency Initiative (EITI) standard is implemented, our local companies actively
participate in the multi-stakeholder groups and timely publish information on our tax
payments with more details than the minimum disclosure requirements prescribed
by the EITI. We support the anti-Base Erosion Profit Shifting (BEPS) initiative and the
PetroChina Tax Policy and pledge to pay tax according to the law in areas where we
operate and create value, in order to strive to achieve sustainable development and to
duly contribute to socioeconomic development.

For details on the PetroChina Tax Policy, please visit our Company website.

96
SOCIAL CONTRIBUTION

Promoting Local Employment


PetroChina makes continuous improvements to our international business management
standards. We promote local employment, respect local working culture and facilitate cultural
integration. We provide training programs for local employees to enhance their growth, so
that local society and economy can grow and develop with us. Our joint operating company in
Oman Block 5 has increased localized employment and on-site training, thus providing more
local employment opportunities. The percentage of local employees has risen from 29% in
2002 to 97% in 2022. Our international subsidiary in Kazakhstan employs over 2,500 locals
with the percentage of local employees at 99%.

Local Procurement
Our Company gives priority to local products and services in our procurement process. We
consider localization of procurement as a contractual obligation. Provided that there is fair
competition, we give priority to using local materials, equipment and consumables, providing
an opportunity for local suppliers, contractors and service providers to participate in our
projects and supporting the development of local small and medium-sized enterprises and
community entrepreneurs. In 2022, our Kazakhstan PK Company signed 23 supply contracts
with 13 local contractors holding “Local Content” certificates, covering areas such as oil,
chemicals, labor protection appliance and safety equipment.

CASE STUDY

Developing Local Suppliers/Contractors in Iraq

In Iraq, we actively implement our localized procurement policy to promote the development of local small and medium-sized
enterprises as well as local employment and economic growth.

West Qurna project Rumaila project

Our West Qurna project prioritizes and implements local In Rumaila, our localized procurement policy
procurement as part of its project management and monitors has extensively helped the development of
its implementation. An electronic tender platform has been local small and medium-sized enterprises,
established, and supplier/contractors manuals are made available including Etihad Al Basra for Contracting
in English and Arabic and issued with tender documents without Trading and Custom (EBCC). Our project
costs to encourage local suppliers/contractors to register and has provided EBCC with specialized training
use for free. As of the end of 2022, over 1,000 companies have including key site position training, regular
completed registration with over 30% being local companies. We system training, ISO management system
give priority consideration to local suppliers/contractors for raw and inspection system establishment, helping
materials, oil products, consumables, stationery, support services EBCC achieve international standards from
and local security, with particular procurement projects requiring business, management to compliance. After
at least 50% local bidders. Over the past few years, local suppliers/ over a decade, EBCC has grown from an
contractors have gradually expanded from providing minor services ordinary local company into one of Iraq’s
such as support services, stationery supply and material supply leading integrated site service companies.
to participation in minor construction works and are actively
participating in subcontractor work with large contractors.

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PetroChina Company Limited
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

Human Rights Protection


Protecting Indigenous Rights
Before the commencement of a project, we conduct assessments of the social,
environemental and economic impact in relation to the needs of communities, human rights
protection, natural environment and cultural heritage. We protect all legal rights and interests
of the indigenous people. We uphold standard operation and formulate compensation
plans by taking into account the opinions of the local governments, our partners and
the local residents in order to protect the interests of the indigenous people. Specifically,
compensation is paid before land use, and the compensation information is released in a
timely manner to ensure operational transparency.
CASE STUDY

Protecting Local Heritage in Rumaila, Iraq

In the northeast sector of Rumaila, Iraq, there are approximately 20 historical monuments of various sizes, with the total
protection area spanning 67 square kilometers. We used the Geographic Information System (GIS) to analyze, evaluate and
process all spatial data of the Rumaila oil field and created a dedicated map of cultural artifacts in the Rumaila oil field, which
alerts authorized users of the map to major cultural monument borders and locations in the Rumaila oil field. We conduct
environmental studies on all oil production plans and activities in this area to ensure the safety and protection of Iraqi cultural
monuments within our oil field production system. Our use of the GIS system to protect cultural monuments has received
recognition and praise from Qahtan Al Abeed, Director of Basrah Antiquities & Heritage and Director of Basrah Museum.

Protecting Aboriginal Rights in Canada and Building Mutual Win-Win Relationships with Local Communities

In Canada, our subsidiary respect and protect aboriginal rights as we strive to build mutual win-win relationships with
aboriginal communities. We have formulated our Aboriginal Relations Policy which provides a framework for the development
and maintenance of peaceful relations with aboriginal communities living in the area of our assets, projects and operations.
We have established an aboriginal relationship committee (ARC) to identify risks and opportunities in relation to aboriginal
stakeholders. In 2022, we formulated an Aboriginal Incident Notification Procedures to specify the procedures for notifying
aboriginal communities and hunters in the event of emergencies in our MacKay River oil sands and Duvernay shale projects.

We have established partnerships and signed agreements with four first nation communities and three Métis communities surrounding
our MacKay River oil sands project, specifying our engagement and negotiation with the communities on production, operations and
development plans, reporting to the local government, sharing information on potential business partnership opportunities, addressing
community concerns and establishing channels and methods for building work and leadership relationships.

We have established strategic partnerships with three aboriginal communities surrounding the Duvernay shale project and
have established a stakeholder affairs team to build and maintain various forms of official and unofficial relationships, including:
external engagement, communication and management of stakeholder relationship, addressing pressing concerns, exploring
development opportunities; convene meetings with government officials, local companies and community representatives to
discuss key issues affecting the communities and explore solutions; hold regular meetings with aboriginal leaders and contact
persons to share production and operations information of the Company, exploring mutually beneficial opportunities; providing
essential funding, training, employment and business opportunities for key aboriginal community development; participating in
aboriginal community cultural activities to understand their history, culture and development vision.

We also incorporate aboriginal companies into our supply chain so that the aboriginal community can share in the fruits of
our development through our sustained, long-term partnership. In 2022, our Canada subsidiary spent over CAD8 million on
procurement of services and material from aboriginal companies.

98
SOCIAL CONTRIBUTION

Overseas Security and Human Rights Protection


We strictly comply with the laws, regulations and human rights protection requirements
of the countries where our operations are located. All contracts on operation and
management of contractors are strictly performed in accordance with the relevant
local requirements and regulations set forth by the relevant authorities. We endeavor
to ensure that the rights and interests of both our Company and our employees are
maximized and maintained in a fair and equitable manner. We also require security
contractors to conduct their work in a responsible and ethical manner and prohibit them
from excessive use of force or engaging in human rights abuse.

The Kazakhstan PK company evaluates the qualifications of security contractors in accordance with our
tender and bidding regulations and selects qualified, competent and experienced security contractors,
In Central Asia

who are required to comply with the relevant laws and regulations of the local government in relation
to wages, paid leave, welfare, pension fund contributions, working conditions and labor protection
appliance. Our contractors are contractually responsible for ensuring and implementing employee safety.
Meanwhile, to eliminate potential discrimination and unfair treatment, the PK Company may exercise veto
over reassignments of security personnel. We conduct satisfaction survey on security services annually to
identify and resolve issues in a timely manner.

Our West Qurna project in Iraq has formulated security policies and is committed to observing Iraqi
Law and the internationally recognized Voluntary Principles on Security and Human Rights (VPSHR)
where oil field armed security and private security operates, so as to ensure that the production, lifestyle
and dignity of our stakeholders are unharmed under the framework of respecting human rights and
In Middle East

basic freedom while offering secure protection for our operations. To date, we have not received any
complaints against excessive use of force or infringement of human rights. In Rumaila, our subsidiary has
formulated a security contractor management standard which incorporates social impact as part of our
evaluation criteria for security contractors. We conduct background checks and criminal record verification
on all security personnel, and those who fail to meet our criteria are not employed. We incorporate Code
of Ethics, Expectations of Behavior, International Code of Conduct, Rules for the Use of Force into our core
training program for security personnel and conduct regular inspections on the performance of security
contractors to evaluate the effectiveness of such training as well as our impact on society.

CUSTOMER The Company practices a “quality-first” principle, an “honest, trustworthy, and excellent”
approach to quality, and pursues “zero accidents and zero defects” and “domestic and
SERVICE international market leader” objectives. We continue to improve our quality management
system, carry out extensive quality upgrades, organize and establish quality management
infrastructure such as measurements, standards, certifications and accreditations, and
inspections and testing, to create outstanding products and iconic brands, enhance our
brand influence and reputation, and strive to provide clean, high-quality, and diversified
products and services for consumers.

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PetroChina Company Limited
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

Product Quality and Safety


We provide consumers with products that meet legal requirements and standards in a
responsible manner. Our Company strictly complies with the Law of the People’s Republic of
China on Product Quality, the Regulations of the People’s Republic of China on Certification
and Accreditation, the Regulations of the People’s Republic of China on Administration
of Production License of Industrial Products and other applicable laws and regulations
100%
concerning quality management and formulated the Measures for Quality Management,
the Administrative Rules on Supervision and Random Inspection of Product Quality, and
the Rules on Quality Supervision of Purchased Materials, and other specific management The passing rates of our pre-
shipment inspection and end-
regulations and implementation rules covering all enterprises, all employees and the entire
product inspection in 2022
process. Through the establishment and accreditation of the quality management system,
we can gradually delegate the responsibility of quality control to employees at every level,
enhance control over process quality, monitor end-product quality and adopt a quality
management approach where we take “all employees, all factors, all processes, and all data”
into consideration.

When providing products to consumers, we consider our Company’s overall impact on


consumers and ensure that our products are safe and up-to-standards. We perform
thorough product quality inspections that cover raw materials, intermediate products and
end products. We place high emphasis on the importance of customer communication, thus
provide detailed information about the performance and physical and chemical indicators
of products to customers. We also established a strict set of procedures for disposing
recyclable products, to prevent adverse effects on the environment.

Product Quality Testing

Establishing a laboratory management system in line with the quality management in accordance with

1 the requirements of the China Laboratory Accreditation Certificate, and conducting verification in strict
accordance with the standard test methods used for testing

2
Verifying and Calibrating all measuring instruments and devices, meters, etc. in strict accordance with
the periodic calibration plan and calibration protocols (norms)

Implementing process quality control, and controlling quality fluctuations in the production process

3 through the establishment of key quality control points, the application of process capability index (Cpk)
and other management tools

4 Collecting and accumulating data and information that reflect quality statuses, conducting quality
analyses, and improving and strengthening our quality management system

Strictly implementing the “Five Prohibitions” rule during pre-shipment inspections, which prohibits
products with the following issues from leaving the factory: failure to meet requirements related to

5 quality, category and specifications/grades; failure to pass all analyses and all items on the inspection
checklist; failure to obtain a product quality inspection certificate; having packaging or containers that fail
to meet the standards; failure to submit samples as required

100
SOCIAL CONTRIBUTION

CASE STUDY

Enhancing Product Quality to Satisfy Market Demand


1-butanol is an important organic raw material used in the petrochemical industry for producing butyl acetate and butyl
acrylate. As a major 1-butanol supplier, PetroChina’s 1-butanol output accounts for approximately 16% of the total
1-butanol output in China. To satisfy the demands for high-end pressure-sensitive adhesives, water-based coatings and
other uses, our Company organized our 1-butanol manufacturers to conduct a full-scale market research where they
conducted on-site interviews with users, determined quality improvement objectives and developed plans to achieve
quality breakthroughs. Through technical transformation and upgrading, we sought to eliminate quality bottlenecks in
our product refining process in a targeted manner. The quality of our 1-butanol has since improved significantly, which
satisfied customers’ demand for higher quality products.

Recycling Process of Lubricant Products

Customers make a request for recycling products

Sales representatives
conduct on-site verification;
1
product management
3 2
department and production
The dispatch center of unit confirm and accept the
the enterprise recycles request, then file a report to
the products document the request

In 2022, our Company raised our standards in product quality and service quality
and endeavoured to provide diversified and high-quality products to consumers. We
implement internal quality control standards that are higher than national standards,
fully completed the upgrade of oil products to meet the China VIB standard, and
developed and produced upgraded chemical products and new chemical materials.

In China

Refined products sales Natural gas sales

105.164 million tons 207.096 billion cubic meters

Output of new chemical materials Year-on-year increase

855,000 tons 56 %
Output of new chemical products Year-on-year increase

840,000 tons in 119 grades 126 %

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PetroChina Company Limited
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

Major Developments Regarding Quality Management in 2022

Key focus Details


All subsidiaries under our Company
have established and implemented
a quality management system in
accordance with the ISO9001
Establishing a
standard. The number of subsidiaries
longstanding Formulated a plan for becoming a quality enterprise
certified by the Quality Management
mechanism for
System (ISO9001) reached
quality improvement

296 By performing QHSE system check, special check and the


“Quality Month” activities, we organized “Quality Check”
activity regarding the quality of procured items, wellbores,
Performing quality oil products and transport links
audits
Checked and endorsed our Kunlun brand, 782
petrochemical products passed our check, the reputation of
brands with a focus on quality growing steadily
Product Quality
and Safety

Carried out the “Quality Month” activity, under which, we

100 % organized 2,688 publicity events over the internet and


new media technology, 270 “Quality Open Days” and 324
Passing rate of third-party “Customer Experience Days”
Creating a culture
accreditation performed
of quality Held a Quality Control (QC) Conference to present our QC
under the quality
results
management system
Encouraged our employees to participate in a quiz on
comprehensive quality management

0%
Products recalled for Upgraded chemical products to further improve the quality
safety and health reasons
of 19 key products
Improving product To ensure that our refined oil products have been
quality comprehensively upgraded, we conducted random inspections
on 3,167 batches of petrol, ensuring that products entering the
end market met the China VIB standard

102
SOCIAL CONTRIBUTION

Consumers’ Rights and Interests


We strictly abide by applicable laws, regulations and international standards relating to
advertisements, labelling and privacy of products and services such as the Law of the People’s
Republic of China on Protection of Consumers’ Rights and Interests and the United Nations
Guidelines for Consumer Protection. Our Company established customer data management
rules and acted in strict accordance with the rules in the management and use of customer
data, so as to safeguard the security and privacy of consumer data.

Customer Data Security and Privacy Protection

Raising data security


Data collection Data storage awareness of data
management personnel

Except for necessary All information collected is Formulated the Measures


personal information that technically encrypted and for the Administration
we use to offer better transmitted to a database of Cybersecurity of our
services and improve located in a central data Company and provided
customers’ experience, center at our Company’s training to relevant
no other data is collected headquarters for storage. personnel
from customers The database uses security
Established a cybersecurity
components to encrypt
management system
and store information
headed by senior
Information on the management staff,
database is secured by controlled by specialized
an internal management personnel, and managed
system; it can only be by a special team on a
retrieved and managed regular basis. Customer
by authenticated and information is therefore
authorized personnel; protected to the greatest
customer private extent by multiple layers
information is redacted of security
from search results

Our Company is committed to a customer-centric approach


and constantly improves our service awareness. As we improve
customer service standards and standardize the customer
service workflow, customers’ complaints are duly addressed,
and the legitimate rights and interests of our consumers are
protected accordingly. A centralized 956100 customer service
center was established for handling customer complaints and 956100
giving feedback to customers. Complaints about the sales of Customer
hotline
refined oil are categorized into different levels and handling
procedures, and are expected to be handled within a specific
timeframe.

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PetroChina Company Limited
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

Customer Complaints Resolution and Service Improvement

Handling complaints of different levels

Handling Customer
Submitted to regional sales
Complaints Level 1
companies for handling
complaints

2,075 Level 2
complaints Submitted to municipal sales
Number of customer
companies for handling under
complaints
the guidance of regional sales
Level 3 companies

100 %
complaints

Customers complaint
response rate

Customers complaints and Analysis of issues Improvements


feedback on issues
Analysis of customer Conducting service Supervising the
complaints quality benchmarking rectification of issues

Visits by mystery Conducting customer Regularly summarizing


shoppers satisfaction survey our lessons learned

Video surveillance Analyzing the issues Conducting service


of stations identified training
Satisfaction rate towards
PetroChina’s 956100 customer Implementing more
service hotline rigorous service

97.9 %
standards

Improving service
quality

Our Company highly respects intellectual property rights. Accordingly, we monitor and
assess risks associated with core and key trademarks on a monthly basis, and based
on the relevant risk assessment results, file applications with the national trademark
administration authority to register, invalidate and oppose trademark applications.
Corresponding measures will be taken to protect our Company against trademark
infringement and unfair competition, to safeguard our exclusive right to use our
trademarks.

Value-added Services
According to the 2022 China Brand
Power IndexSM (C-BPI) brand Placing customer satisfaction at the heart of our business, we constantly improve the
ranking and analysis report released quality of our products and services and work hard to improve our service network and
by Chnbrand, a renowned brand its functions. In 2022, We fully leveraged our networking strengths and took the priority
rating institute, PetroChina came
to work on desired projects, constructed demonstrative hydrogen refueling stations and
nd
2 in the overall brand rating
charging (swapping) stations, and established a new battery leasing platform, with the
aim of driving the transition and upgrading of our sales business towards an integrated
service covering oil, gas, hydrogen, electricity and non-oil products.

104
PERFORMANCE DATA

PERFORMANCE
DATA
Category Indicator 2020 2021 2022

Board Diversity

Independent directors1 (%) 45.5 41.7 36.4

By gender

-Male (%) 90.9 91.7 90.9

-Female (%) 9.1 8.3 9.1

By professional background

-Legal (%) 9.1 8.3 9.1


Governance
-Finance/accounting (%) 18.2 16.7 9.1

-Economics (%) 18.2 16.7 18.2

-Petrochemical (%) 54.5 58.3 63.6

Compliance Management and Integrity Risk Control Management

Coverage rate of compliance training (%) 100 100 100

Coverage of integrity risk prevention training for staff (including members


- 100 100
of the Board and all employees) (%)

Fatality rate (persons/100 million working hours) 0.08 0.09 0.09

- Company staff (persons/100 million working hours) 0.12 0.12 0.06

- Contractor/service provider (persons/100 million working hours) 0.00 0.00 0.16

Total accident rate (incidents/million working hours) 0.0495 0.0541 0.0191

- Company staff (incidents/million working hours) 0.0660 0.0707 0.0237

- Contractor/service provider (incidents/million working hours) 0.0087 0.0108 0.0079

Work-related fatalities (persons) 2 2 2


Safety
- Company staff (persons) 2 2 1

- Contractor/service provider (persons) 0 0 1

Loss of working days due to work-related injury (days) 6,806 8,651 5,146

- Company staff (days) 3,716 8,417 2,574

- Contractor/service provider (days) 3,090 234 2,572

Number of subsidiaries certified by the HSE Management System


- - 116
(Q/SY08002.1)

【1】 In 2022, one independent non-executive director of the Board resigned, and the proportion of the indendent non-executive directors was lower than that for last year.
Our Company is actively looking for the candidate. The proportion of the independent non-executive directors of the Board complies with the relevant rule reuqirements.

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PetroChina Company Limited
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

Category Indicator 2020 2021 2022

GHG

Total GHG emissions2 (million tCO2e) 167.44 159.54 160.56

-Direct GHG emissions 3 (Scope 1) (million tCO2e) 127.57 121.39 119.68

-Indirect GHG emissions 4 (Scope 2) (million tCO2e) 39.87 38.15 40.88

-Oil and gas and new energy business (million tCO2e) 55.69 54.00 53.39

-Refining, chemicals and new materials business (million tCO2e) 93.93 97.16 98.81
Climate
-Other businesses (million tCO2e) 17.82 8.38 8.36
Change
Domestic GHG emissions per unit of oil and gas production5 (tCO2e/toe) 0.28 0.25 0.24

Methane emissions (10,000 tons) - 42.81 40.09

Methane emission intensity (%) - 0.45 0.40

Recovery from gas venting (100 million m3) - - 15.5

Transition to Low-Carbon Energy Sources

Investment in new energies and new businesses (RMB 100 million) - 21.8 76.7

Water Resources

Fresh water consumption (10,000 m3) 76,995 75,004 74,688

Year-on-year change in fresh water consumption (%) -3.01 -2.59 -0.42

Fresh water consumption for processing 1 ton of crude oil (m3) 0.515 0.488 0.481

Water saved (10,000 m3) 944 969 871

Land Resources

Environment Newly-acquired construction land used in an economical manner (hectares) 1,190 1,120 1,280

Energy Consumption

Total energy consumption6 (10,000 tons of standard coal) 6,406 6,273 6,245

7
Total raw coal consumption (10,000 tons) 1,289 1,327 1,232

Total crude oil consumption8 (10,000 tons) 172 168 159

Total natural gas consumption9 (100 million m3) 187 175 177

10
Total electricity consumption (100 million kWh) 553 525 564

【2-5】 GHG emissions are direct emissions (Scope 1) and indirect emissions (Scope 2) arising within our Company’s operational boundary. Our domestic projects mainly comply with the Guide to
Accounting Methods and Reporting of Greenhouse Gas Emissions by China’s Oil and Gas Producers (Trial Implementation) (No. 2920 [2014] on Climate, National Development and Reform
Commission (“NDRC”)), the Guide to Accounting Methods and Reporting of Greenhouse Gas Emissions by China’s Petrochemical Companies (Trial Implementation) (No. 2920 [2014] on
Climate, NDRC), the Guide to Accounting Methods and Reporting of Greenhouse Gas Emissions by China’s Chemical Production Enterprises (Trial Implementation) (No. 2526 [2016] on
Climate, NDRC) and other relevant industry guidelines and standards issued by the State for accounting purposes; while for overseas projects, local accounting standards and requirements of
the countries where the operations are located take precedence over PRC laws. Where there are no specific requirements from an overseas country, overseas projects are accounted for using a
combination of PRC standards and the relevant parameters of such country.

【6-10】 Total energy consumption is calculated by converting the actual amount of physical energy consumed in the production and daily operation of the enterprise according to the
calculation methods and conversion factors as stipulated in the PetroChina’s Corporate Standards (Q/SY09061-2020), using the following formula: total energy consumption
(tons of standard coal) = ∑ the actual amount of physical energy consumed in the production process of the enterprise × the conversion factor. For example, the conversion factor is
0.7143 tons of standard coal/ton for raw coal, 1.4286 tons of standard coal/ton for crude oil, 13.3 tons of standard coal/10,000 cubic meters for natural gas, and 1.229 tons of standard coal/10,000 kWh for
electricity. The total amount of energy consumption is calculated through multiplying the actual physical energy consumption of the enterprise by the conversion factor.

106
PERFORMANCE DATA

Category Indicator 2020 2021 2022

Energy saved (10,000 tons of standard coal) 76 70 71

Comprehensive energy consumption per unit of oil and gas equivalent


118 116 109
production (kg standard coal/ton)

Unit energy factor consumption for refining11 (kg of standard oil/ ton of
8.13 7.89 7.89
factor)

Consumption for producing ethylene products per unit12 (kg standard


658 651 604
oil/ton)

Pollutant Emissions

Amount of general solid waste13 (10,000 tons) - 260.3 248.5

Amount of hazardous waste14 (10,000 tons) - 139.6 94.3

Environment Compliant disposal rate of general solid waste (%) - 100 100

Compliant disposal rate of hazardous waste (%) - 100 100

Chemical oxygen demand (COD) emissions15 (10,000 tons) 2.35 0.53 0.50

Sulfur dioxide (SO2) emissions16 (10,000 tons) 8.84 1.11 0.92

Nitrogen oxides (NOX ) emissions 17 (10,000 tons) 7.76 5.64 5.01

Volatile organic compounds (VOCs) emissions (from refining operations)


- 7.06 6.82
(10,000 tons)

Environmental Protection

Environmental protection expenditures (RMB 100 million) - 39.2 38.9

Number of subsidiaries certified by the Environmental Management


- - 105
System (ISO14001)

Number of employees18 (10,000) 43.20 41.72 39.84

Employee Diversity

Percentage of female administrative staff (%) 7.28 7.21 7.17

Percentage of ethnic minority employees (%) 6.61 6.63 6.70

Percentage of foreign employees in overseas projects (%) 95.15 95.21 96.69

Employee By Employment Type

-Full-time employees (%) 100 100 100

-Part-time employees (%) 0 0 0

By Gender

-Male employees (%) 72.48 73.95 75.46

-Female employees (%) 27.52 26.05 24.54

【11-12】In 2021, our Company adjusted the statistical methods for two indicators, the “unit energy factor consumption for refining” and “consumption for producing ethylene products per unit”, in
accordance with the national standards, the Norm of Energy Consumption Per Unit Product for Petroleum Refining (GB30251) and the Norm of Energy Consumption Per Unit Product of
Ethylene Plant (GB30250). Our Company also restored the 2020 data according to the same standards. In 2022, according to the definition of national standard, we renamed “fuel and power
consumption for producing ethylene products” to “consumption for producing ethylene products per unit”, the analysis and calculation of them are the same.
【13-14】The amount of solid waste disposed of by third-party institutions with relevant qualifications commissioned by our Company.
【15-17】Since 2018, our Company has been implementing the state requirements to win the strategic fight against pollution. Since then, we have been vigorously upgrading our wastewater treatment
standards, improving our exhaust gas emissions to meet ultra low emissions standards, applying clean production methods, substituting fossil fuels with cleaner fuels, and implementing other
engineering and structural projects to reduce carbon, and significantly reduced our pollutant emissions. At the same time, in accordance with the results of the Second National Census on
Pollution Sources and the specific standards for pollutant emissions accounting stipulated in the Technical Specifications for Application and Issuance of Pollutant Permits for industries relating
to our Company’s business, starting from 2021, our Company’s pollutant emission statistics has been calculated using the preferred accounting method of using online monitoring data of
pollution sources. The exhaust emission data includes flaring emissions.
【18】 Excluding staff employed through labor dispatching, for seasonal employment, temporary work and third-party staff.

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PetroChina Company Limited
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

Category Indicator 2020 2021 2022

By Age

-25 years old or below (%) 1.29 1.60 1.99

-26-35 years old (%) 12.56 11.39 10.32

-36-45 years old (%) 27.35 25.11 23.88

-46-55 years old (%) 49.08 50.10 50.89

-56 years old or above (%) 9.72 11.80 12.92

By Position

-Administrative staff (%) 28.57 28.88 29.06

-Professional and technical staff (%) 14.08 14.63 15.41

-Operating staff (%) 57.35 56.49 55.53

By Education

-Master’s degree and above (%) 4.23 4.55 4.99

-Bachelor’s degree (%) 34.82 36.00 37.39

-College degree (%) 22.80 22.57 22.31

-Technical secondary school and below (%) 38.15 36.88 35.31

Employee By Country and Region

-China (%) 99.7 99.7 99.7

-Countries and regions other than China (%) 0.3 0.3 0.3

Employee Health

Number of subsidiaries certified by the Occupational Health and Safety


- - 107
Management System (ISO45001)

Creation of occupational health records for employees (%) 100 100 100

Detection rate of occupational health hazards in the workplace (%) 99.33 99.22 100.00

Employees exposed to occupational health hazards receiving health


99.25 100.00 99.15
checks (%)

Employee Training

Average training time per person19 (hour) 32.4 30.5 37.9

-Average training time per administrative staff (hour) - 20.7 37.5

-Average training time per professional and technical staff (hour) - 10.5 11.2

-Average training time per operating staff (hour) - 40.7 45.5

-Average training time per male employee (hour) - 36.7 38.9

-Average training time per female employee (hour) - 12.9 34.8

【19】 In 2021, our Company changed the formula of the indicator “Average training time per person” from “Average training time per person = Total training time/Number of trainees” to “Average
training time per person = Total training time/Number of employees”, in keep line with HKEX’s ESG Reporting Guide. Our Company also adjusted the 2020 data in accordance with the same
standards.

108
PERFORMANCE DATA

Category Indicator 2020 2021 2022

Training rate of employees (%) - 100 100

-Training rate of administrative staff (%) - 100 100

-Training rate of professional and technical staff (%) - 100 100

-Training rate of operating staff (%) - 100 100

-Training rate of male employees (%) - 100 100

-Training rate of female employees (%) - 100 100

Staff Turnover Rate

Staff turnover rate (%) 0.27 0.22 0.14

Employee -Turnover rate of male employees (%) - 0.21 0.14

-Turnover rate of female employees (%) - 0.23 0.16

-Turnover rate of employees aged 25 or below (%) - 2.38 1.34

-Turnover rate of employees aged 26-35 (%) - 0.81 0.49

-Turnover rate of employees aged 36-45 (%) - 0.22 0.15

-Turnover rate of employees aged 46-55 (%) - 0.06 0.05

-Turnover rate of employees aged 56 or above (%) - 0.05 0.06

Employees who returned to work and kept their posts after taking
100 100 100
maternity/paternity leave (%)

Tax Payment According to Law

Taxes and fees (RMB 100 million) 2,812 3,536 4,618

-Overseas taxes (RMB 100 million) 238 375 574

Supply Chain

Number of material suppliers20 23,699 20,527 21,890

21
-Suppliers registered in China - 19,885 21,331
Society
-Suppliers registered in countries/regions other than China22 - 642 559

Percentage of tier 1 manufacturers certified by the Quality Management


98.14 98.01 98.03
System (ISO9001)23 (%)

Percentage of tier 1 manufacturers certified by the Environmental


92.73 93.16 94.14
Management System (ISO14001)24 (%)

Percentage of tier 1 manufacturers certified by the Occupational Health


91.20 91.49 93.14
and Safety Management System (ISO45001)25 (%)

Procurement expenditures (RMB 100 million) 1,683 1,806 2,015

【20-25】Data of suppliers involved in our Company’s domestic business and international business is excluded.

109
PetroChina Company Limited
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

Category Indicator 2020 2021 2022

Products and Services

Passing rate of third-party accreditation performed under the quality


100 100 100
management system (%)

Number of subsidiaries certified by the Quality Management System


- - 296
(ISO9001)

Number of customer complaints - 4,111 2,075

Customers complaint response rate (%) - 100 100

Products recalled for safety and health reasons (%) - 0 0


Society
Public Welfare

Total contributions to public welfare (RMB 10,000) 39,623 62,580 58,272

-Contribution to poverty alleviation (RMB 10,000) 11,954 38,984 30,274

-Educational donations (RMB 10,000) 2,656 4,851 4,530

-Donations to disaster relief (RMB 10,000) 1,172 3,992 5,133

-Environmental protection (RMB 10,000) 375 216 781

-Other contributions to public welfare26 (RMB 10,000) 23,466 14,537 17,554

【26】Including social public welfare investment such as medical and health care, culture and sports, construction of social public welfare facilities, donations for disabled people's undertakings, other
public welfare relief, and donations for public welfare undertakings.
Note: Conversion standards. 1 barrel of oil equivalent = 1 barrel of crude oil = 6,000 cubic feet of natural gas = 169.9 m3 of natural gas; 1 m3 of natural gas = 35.315 cubic feet of natural gas; 1 ton of crude
oil = 7.389 barrels of crude oil (assuming an API gravity of 34 degrees)

110
INDEPENDENT PRACTITIONER’S ASSURANCE REPORT

INDEPENDENT PRACTITIONER’S
ASSURANCE REPORT

2023/SH-0174
(Page1/3)

English Translation for Reference Only

Independent practitioner’s assurance report


To the Board of Directors of PetroChina Company Limited
We have been engaged to perform a limited assurance engagement on the selected
2022 key data as defined below in the 2022 Environmental, Social and Governance
Report (“ESG report”) of PetroChina Company Limited (the “Company”).

Selected Key Data

The selected key data in the Company’s 2022 ESG Report that is covered by this
report is as follows:

• Fatality rate
• Total accident rate
• Work-related fatalities
• Employees exposed to occupational health hazards receiving health checks
• Total GHG emissions
• Direct GHG emissions (Scope 1)
• Indirect GHG emissions (Scope 2)
• Chemical oxygen demand (COD) emissions
• Nitrogen oxides (NOX) emissions
• Total energy consumption
• Energy saved
• Fresh water consumption
• Water saved
• Number of employees
• Percentage of female administrative staff
• Staff turnover rate

Our assurance was with respect to the year ended 31 December 2022 information
only and we have not performed any procedures with respect to earlier periods or
any other elements included in the 2022 ESG report.

Criteria
The criteria used by the Company to prepare the selected key data in the 2022 ESG
report is set out in the basis of reporting of the key data (the “basis of reporting”)
after this assurance report.

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2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

2023/SH-0174
(Page2/3)
H
Management’s Responsibilities

The Management of the Company is responsible for the preparation of the selected
key data in the 2022 ESG report in accordance with the basis of reporting. This
responsibility includes designing, implementing and maintaining internal control
relevant to the preparation of the selected key data in the 2022 ESG report that is
free from material misstatement, whether due to fraud or error.

Our Independence and Quality Management

We have complied with the independence and other ethical requirement of the
International Code of Ethics for Professional Accountants (including International
Independence Standards) issued by the International Ethics Standards Board for
Accountants, which is founded on fundamental principles of integrity, objectivity,
professional competence and due care, confidentiality and professional behaviour.

Our firm applies International Standard on Quality Management 1, which requires


the firm to design, implement and operate a system of quality management
including policies or procedures regarding compliance with ethical requirements,
professional standards and applicable legal and regulatory requirements.

Practitioner’s Responsibilities

It is our responsibility to express a conclusion on the selected key data in the 2022
ESG report based on our work.

We conducted our work in accordance with the International Standard on Assurance


Engagements 3000 (Revised) “Assurance Engagements Other Than Audits or
Reviews of Historical Financial Information”. This standard requires that we plan
and perform our work to form the conclusion.

The procedures performed in a limited assurance engagement vary in nature and


timing from, and are less in extent than for, a reasonable assurance engagement.
Consequently, the level of assurance obtained in a limited assurance engagement is
substantially lower than the assurance that would have been obtained had a
reasonable assurance engagement been performed. Accordingly, we do not express a
reasonable assurance opinion about whether the Company’s 2022 selected key data
in the 2022 ESG report has been prepared, in all material respects, in accordance
with the basis of reporting. Our work involves assessing the risks of material
misstatement of the selected key data in the 2022 ESG report, whether due to fraud
or error, and responding to the assessed risks. The extent of procedures selected
depends on our judgment and assessment of the engagement risk. Within the scope

-2-

112
INDEPENDENT PRACTITIONER’S ASSURANCE REPORT

2023/SH-0174
(Page3/3)

of our work, we have performed the following procedures in the Head Office of the
Company, Dagang Oil field Branch and Yunnan Petrochemical Branch. We have not
conducted work in other branches.

1) Interviews with relevant departments of the Company involved in providing


information for the selected key data within the ESG report; and
2) Analytical procedures;
3) Examination, on a test basis, of documentary evidence relating to the selected key
data on which we report;
4) Recalculation; and
5) Other procedures deemed necessary.

Inherent Limitation

The absence of a significant body of established practice on which to draw to


evaluate and measure non-financial information allows for different, but acceptable,
measures and measurement techniques and can affect comparability between
entities.

Conclusion

Based on the procedures performed and evidence obtained, nothing has come to our
attention that causes us to believe that the 2022 selected key data in the 2022 ESG
report is not prepared, in all material respects, in accordance with the basis of
reporting.

Restriction on Use

Our report has been prepared for and only for the board of directors of the Company
and for no other purpose. We do not assume responsibility towards or accept
liability to any other person for the content of this report.

PricewaterhouseCoopers Zhong Tian LLP

Shanghai, China

March 29, 2023

-3-

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PetroChina Company Limited
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

Basis of Reporting
Fatality rate (persons/100 million working hours):
Fatality rate disclosed herein refers to the ratio of fatalities in industrial production safety accidents to total working hours of PetroChina Company
Limited in 2022.

Total accident rate (incidents/million working hours):


Total accident rate disclosed herein refers to the ratio of the number of industrial production safety accidents to total working hours of PetroChina
Company Limited in 2022.

Work-related fatalities (persons):


Work-related fatalities herein refer to the number of people who died in industrial production safety accidents of PetroChina Company Limited in 2022.

Employees exposed to occupational health hazards receiving health checks (%):


Employees exposed to occupational health hazards receiving health checks herein refers to the ratio of the number of completed occupational
health examinations for employees exposed to occupational disease hazards to the planned number of occupational health examinations for
employees exposed to occupational disease hazards of PetroChina Company Limited in 2022.

Total GHG emissions (million tCO2e):


Total GHG emissions disclosed herein refers to the sum of direct GHGs emissions and indirect GHGs emissions produced by subsidiaries of
PetroChina Company Limited in 2022.

Direct GHG emissions (Scope 1) (million tCO2e):


Direct GHG emissions disclosed herein refers to the total direct GHGs emissions from fuel combustion emissions, process emissions, fugitive
emissions, etc. produced by subsidiaries of PetroChina Company Limited in 2022.

Indirect GHG emissions (Scope 2) (million tCO2e):


Indirect GHG emissions disclosed herein refers to indirect GHGs emissions from consumption of purchased electricity, purchased steam, etc.
produced by subsidiaries of PetroChina Company Limited in 2022.

Chemical oxygen demand (COD) emissions (10,000 tons):


Chemical oxygen demand (COD) emissions disclosed herein refers to the total amount of COD in the wastewater discharged during the production
process by subsidiaries of PetroChina Company Limited in 2022.

Nitrogen oxides (NOX) emissions (10,000 tons):


Nitrogen oxides (NOX) emissions disclosed herein refers to the total amount of NOX emissions discharged during the production process by
subsidiaries of PetroChina Company Limited in 2022.

Total energy consumption (10,000 tons of standard coal):


Total energy consumption disclosed herein refers to the total amount of energy converted into standard coal and consumed by subsidiaries of
PetroChina Company Limited in 2022, excluding energy consumed as raw materials for production and energy supplied outside the company.

Energy saved (10,000 tons of standard coal):


Energy saved disclosed herein refers to the sum of the year-on-year savings on energy consumption saved by subsidiaries of PetroChina Company
Limited in 2022, under the premise of producing the same products and completing the same processing or workload, and the amount of energy
consumption saved various energy-saving projects.

Fresh water consumption (10,000 m3):


Fresh water consumption disclosed herein refers to the amount of water used for the first time by subsidiaries of PetroChina Company Limited in
2022, from tap water, surface water, groundwater sources, excluding seawater, bittern brackish water, sewage, reclaimed water, and water supplied
outside the enterprise.

Water saved (10,000 m3)


Water saved disclosed herein refers to the sum of the amount of fresh water saved by subsidiaries of PetroChina Company Limited in 2022, under
the premise of producing the same products and completing the same amount of treatment or workload, and the amount of fresh water saved by
various water-saving projects.

Number of employees (10,000):


The number of employees disclosed herein refers to the registered personnel employed by PetroChina Company Limited in 2022 who have signed
labor contracts with the company, excluding labor dispatch, seasonal employment, temporary employment, and third-party personnel.

Percentage of female administrative staff (%):


Percentage of female administrative staff disclosed herein refers to the ratio of female employees working in management positions to the total
number of employees employed by PetroChina Company Limited in 2022.

Staff turnover rate (%):


The staff turnover rate disclosed herein refers to the proportion of employees who voluntarily resign from PetroChina Company Limited in 2022 to
the total number of employees.
114
HONG KONG STOCK EXCHANGE ESG REPORTING GUIDE CONTENT INDEX

HONG KONG STOCK EXCHANGE


ESG REPORTING GUIDE CONTENT INDEX
Aspect Mandatory Disclosure Indicator Page Number

A statement from the Board containing the following elements:


(i) a disclosure of the Board’s oversight of ESG issues;
Inside
Governance (ii) the Board’s ESG management approach and strategy, including the process used to evaluate,
front
Structure prioritise and manage material ESG-related issues (including risks to the issuer’s businesses); and
cover
(iii) how the Board reviews progress made against ESG-related goals and targets with an explanation
of how they relate to the issuer’s businesses.

A description of, or an explanation on, the application of the following Reporting Principles in the
preparation of the ESG report:
Materiality: The ESG report should disclose: (i) the process to identify and the criteria for the selection
of material ESG factors; (ii) if a stakeholder engagement is conducted, a description of significant
stakeholders identified, and the process and results of the issuer’s stakeholder engagement.
Reporting
2-5
Principles Quantitative: Information on the standards, methodologies, assumptions and/or calculation tools
used, and source of conversion factors used, for the reporting of emissions/energy consumption
(where applicable) should be disclosed.

Consistency: The issuer should disclose in the ESG report any changes to the methods or KPIs used, or
any other relevant factors affecting a meaningful comparison.

A narrative explaining the reporting boundaries of the ESG report and describing the process used to
Reporting
identify which entities or operations are included in the ESG report. If there is a change in the scope, 2
Boundary
the issuer should explain the difference and reason for the change.

Subject Area Aspect Comply or Explain Indicator Page Number

General Disclosure
Information on:
(a) the policies; and
38, 59-64
(b) compliance with relevant laws and regulations that have a significant impact on the issuer
relating to air and greenhouse gas emissions, discharges into water and land, and generation of
hazardous and non-hazardous waste.

KPI A1.1 The types of emissions and respective emissions data. 106-107

Direct (Scope 1) and energy indirect (Scope 2) greenhouse gas emissions (in
Aspect KPI A1.2 tonnes) and, where appropriate, intensity (e.g. per unit of production volume, 106
Environmental A1: per facility).
Emissions
Total hazardous waste produced (in tonnes) and, where appropriate, intensity
KPI A1.3 107
(e.g. per unit of production volume, per facility).

Total non-hazardous waste produced (in tonnes) and, where appropriate,


KPI A1.4 107
intensity (e.g. per unit of production volume, per facility).

KPI A1.5 Description of emission target(s) set and steps taken to achieve them. 38-49, 63-64

Description of how hazardous and non-hazardous wastes are handled, and a


KPI A1.6 64
description of reduction target(s) set and steps taken to achieve them.

115
PetroChina Company Limited
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

Subject Area Aspect Comply or Explain Indicator Page Number

General Disclosure
59-62
Policies on the efficient use of resources, including energy, water and other raw materials.

Direct and/or indirect energy consumption by type (e.g. electricity, gas or oil)
KPI A2.1 in total (kWh in ‘000s) and intensity (e.g. per unit of production volume, per 106-107
facility).

Aspect A2: Water consumption in total and intensity (e.g. per unit of production volume,
KPI A2.2 106
Use of per facility).
Resources Description of energy use efficiency target(s) set and steps taken to achieve
KPI A2.3 59-62
them.

Description of whether there is any issue in sourcing water that is fit for
KPI A2.4 59-60
purpose, water efficiency target(s) set and steps taken to achieve them.
Environmental Total packaging material used for finished products (in tonnes) and, if
KPI A2.5 -
applicable, with reference to per unit produced.

Aspect A3: General Disclosure


The Policies on minimising the issuer’s significant impacts on the environment and natural 56-58
Environment resources.
and Natural Description of the significant impacts of activities on the environment and
KPI A3.1 56-58
Resources natural resources and the actions taken to manage them.

General Disclosure
Aspect A4: Policies on identification and mitigation of significant climate-related issues which have 40
Climate impacted, and those which may impact, the issuer.
Change Description of the significant climate-related issues which have impacted, and those
KPI A4.1 38-53
which may impact, the issuer, and the actions taken to manage them.

General Disclosure
Information on:
(a) the policies; and
72
(b) compliance with relevant laws and regulations that have a significant impact on the issuer
Aspect B1: relating to compensation and dismissal, recruitment and promotion, working hours, rest
Employment periods, equal opportunity, diversity, anti-discrimination, and other benefits and welfare.

Total workforce by gender, employment type (for example, full- or part-time),


KPI B1.1 107-108
age group and geographical region.

KPI B1.2 Employee turnover rate by gender, age group and geographical region. 109

General Disclosure
Information on:
(a) the policies; and
74-78
(b) compliance with relevant laws and regulations that have a significant impact on the issuer
relating to providing a safe working environment and protecting employees from occupational
Social Aspect B2:
hazards.
Health and
Safety Number and rate of work-related fatalities occurred in each of the past three
KPI B2.1 105
years including the reporting year.

KPI B2.2 Lost days due to work injury. 105

Description of occupational health and safety measures adopted, and how they
KPI B2.3 74-78
are implemented and monitored.

General Disclosure
Policies on improving employees’ knowledge and skills for discharging duties at work. 79-82
Description of training activities.
Aspect B3:
Development The percentage of employees trained by gender and employee category (e.g.
KPI B3.1 109
and Training senior management, middle management).

The average training hours completed per employee by gender and employee
KPI B3.2 108
category.

116
HONG KONG STOCK EXCHANGE ESG REPORTING GUIDE CONTENT INDEX

Subject Area Aspect Comply or Explain Indicator Page Number

General Disclosure
Information on:
(a) the policies; and 72
Aspect B4: (b) compliance with relevant laws and regulations that have a significant impact on the issuer
Labour relating to preventing child and forced labour.
Standards
Description of measures to review employment practices to avoid child and
KPI B4.1 72
forced labour.
KPI B4.2 Description of steps taken to eliminate such practices when discovered. 72
Generally Disclose
26-27
Policies on managing environmental and social risks of the supply chain.
KPI B5.1 Number of suppliers by geographical region. 109
Description of practices relating to engaging suppliers, number of suppliers
Aspect B5: KPI B5.2 where the practices are being implemented, and how they are implemented 26-27
Supply Chain and monitored.
Management Description of practices used to identify environmental and social risks along
KPI B5.3 26-27, 77
the supply chain, and how they are implemented and monitored.
Description of practices used to promote environmentally preferable products
KPI B5.4 and services when selecting suppliers, and how they are implemented and 26-27
monitored.
General Disclosure
Information on:
(a) the policies; and
103-104
(b) compliance with relevant laws and regulations that have a significant impact on the issuer
relating to health and safety, advertising, labelling and privacy matters relating to products and
services provided and methods of redress.

Social Aspect B6: Percentage of total products sold or shipped subject to recalls for safety and
KPI B6.1 110
Product health reasons.

Responsibility KPI B6.2 Number of products and service related complaints received and how they are
103-104
dealt with.
Description of practices relating to observing and protecting intellectual
KPI B6.3 33, 104
property rights.
KPI B6.4 Description of quality assurance process and recall procedures. 100-101
Description of consumer data protection and privacy policies, and how they are
KPI B6.5 103
implemented and monitored.
General Disclosure
Information on:
(a) the policies; and 24, 26
(b) compliance with relevant laws and regulations that have a significant impact on the issuer
Aspect B7: relating to bribery, extortion, fraud and money laundering.
Anti- Number of concluded legal cases regarding corrupt practices brought against
corruption KPI B7.1 the issuer or its employees during the reporting period and the outcomes of 24-25
the cases.
Description of preventive measures and whistle-blowing procedures, and how
KPI B7.2 24-25
they are implemented and monitored.
KPI B7.3 Description of anti-corruption training provided to directors and staff. 24-25
General Disclosure
Policies on community engagement to understand the needs of the communities where the issuer 86-99
Aspect B8: operates and to ensure its activities take into consideration the communities’ interests.
Community
Focus areas of contribution (e.g. education, environmental concerns, labour
Investment KPI B8.1 86-99
needs, health, culture, sport).
KPI B8.2 Resources contributed (e.g. money or time) to the focus area. 110

This report is in compliance with the “comply or explain” provisions under the HKEX’s ESG Reporting Guide. The undisclosed indicators in KPI A2.5 and some of the disclosed
indicators in KPI B1.2 are interpreted as follows:
1. Clause A2.5 does not apply to our Company due to its product nature.
2. The Company employs a small percentage of its employees outside of China. In consideration of materiality, employee turnover data in terms of geographical region is not
disclosed in this Report.
117
PetroChina Company Limited
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

TCFD RECOMMENDATIONS INDEX


TCFD Framework Page Numbe

Governance

a) Describe the Board’s oversight of climate-related risks and opportunities. 38-39

b) Describe management’s role in assessing and managing climate-related risks and opportunities. 39

Strategy

a) Describe the climate-related risks and opportunities the organization has identified over the short, medium, and long
40
term.

b) Describe the impact of climate-related risks and opportunities on the organization’s businesses, strategy, and financial
40
planning.

c) Describe the resilience of the organization’s strategy, taking into consideration different climate-related scenarios. 41-42

Risk Management

a) Describe the organization’s processes for identifying and assessing climate-related risks. 39-40

b) Describe the organization’s processes for managing climate-related risks. 39-40

c) Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the
43
organization’s overall risk management.

Metrics and Targets

a) Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and
43, 45, 106
risk management process.

b) Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks. 45, 106

c) Describe the targets used by the organization to manage climate-related risks and opportunities and performance against
43, 45, 106
targets.

GLOBAL COMPACT AND US


The Global Compact is a global framework initiated and advocated by the United Nations aimed at the promotion of sustainable
development and the collective improvement of social well-being through responsible and innovative business practices. As a
member of the UN Global Compact, we are committed to observing and supporting the Ten Principles of the UN Global Compact
in the areas of human rights, labour rights, environmental protection and anti-corruption. We will always follow the Ten Principles in
our practices for fulfilling social responsibilities, and consistently disclose the compliance thereof in our annual report.

Ten Principles in the Global Compact Corresponding Sections Herein

1.1 Sustainability Management


1.Businesses should support and respect the protection of 4.1 Employee Human Rights
internationally proclaimed human rights 5.1 Community Impact Management
Human Rights 5.3 Overseas Community Construction

2.Businesses should make sure that they are not complicit in 4.1 Employee Human Rights
human rights abuses 5.1 Community Impact Management

118
GLOBAL COMPACT AND US / GRI AND IPIECA/API INDEX

Ten Principles in the Global Compact Corresponding Sections Herein

3.Businesses should uphold the freedom of association and the


4.1 Employee Human Rights
effective recognition of the right to collective bargaining

4.Businesses should uphold the elimination of all forms of


4.1 Employee Human Rights
forced and compulsory labour
Labour
5.Businesses should uphold the effective abolition of child
4.1 Employee Human Rights
labour

6.Businesses should uphold the elimination of discrimination in


4.1 Employee Human Rights
respect of employment and occupation

7.Businesses should support a precautionary approach to 2 Climate Change and Energy Transition
environmental challenges 3 Environmental Protection

8.Businesses should undertake initiatives to promote greater 2 Climate Change and Energy Transition
environmental responsibility 3 Environmental Protection
Environment
6.1 Technological Innovation and Digital
9.Businesses should encourage the development and diffusion Empowerment
of environmentally friendly technologies 2 Climate Change and Energy Transition
3 Environmental Protection

1.2 Governance Framework


10.Businesses should work against corruption in all its forms,
Anti-Corruption 1.3 Governance
including extortion and bribery
1.4 Supply Chain Management

GRI AND IPIECA/API INDEX


For the purpose of disclosing ESG information, we make references to the Oil and Gas Industry Guidance on Voluntary Sustainability
(2020) co-published by the International Petroleum Industry Environment Conservation Association (IPIECA) and the GRI
Sustainability Reporting Standards (2021) published by the Global Sustainability Standards Board.

Contents IPIECA/API (2020) GRI (2021)

Statement of the Board of Directors GOV-1 2-11, 2-12, 2-13, 2-14, 2-22, 2-23, 2-24
About the Report 2-2, 2-3, 2-4, 3-1, 3-2, 3-3
About Us 2-1, 2-6
GOV-1, GOV-4, CCE-1, CCE-6,
Message from the Chairman 2-11, 201-2, 203-1, 203-2, 302-1, 303-1
ENV-3, SOC-7, SOC-13
Sustainability
GOV-1 2-12, 2-13, 2-14, 2-18, 2-19, 2-22, 2-23, 2-24
Management
2-9, 2-10, 2-11, 2-13, 2-15, 2-16, 2-17, 2-26, 2-27,
Governance Framework GOV-1
405-1
Governance GOV-1, GOV-3, SOC-8 2-26, 205-2, 205-3
Supply Chain
Corporate GOV-3, SHS-1, SOC-1, SOC-2 308-1, 308-2, 414-1
Management
Governance
Communicating
and Interacting with SOC-10, SOC-12 2-29
Stakeholders
Technological
Innovation and Digital CCE-3
Empowerment

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2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT

Contents IPIECA/API (2020) GRI (2021)

Response to Climate
GOV-4, CCE-1, CCE-2, CCE-4, CCE-5 201-2, 203-1, 305-4, 305-5
Change
Climate
Change Curbing Carbon
GOV-4, CCE-3, CCE-4, CCE-5, CCE-7 2-28, 305-1, 305-2, 305-4, 305-5
and Energy Emissions
Transition

Low-carbon Transition CCE-1, CCE-3

Environmental Risk
SHS-1, SHS-6, SHS-7 403-1, 403-2
Management

Sustainable Utilisation
CCE-6, ENV-1, ENV-2, ENV-8 302-1, 302-3, 302-4, 303-1, 303-3, 303-5
of Natural Resources
Environmental
Protection
Pollutant Discharge
ENV-2, ENV-5, ENV-7 303-2, 305-7, 306-2, 306-5
Management

Conservation of
ENV-3, ENV-4, ENV-8, SHS-6, SHS-7, SOC-3 304-2
Biodiversity

Employee Human 2-7, 2-8, 401-1, 401-2, 401-3, 405-1, 408-1,


SOC-5, SOC-6
Rights 409-1

SHS-1, SHS-2, SHS-3, SHS-6, 403-1, 403-3, 403-5, 403-6, 403-7, 403-8,
Employee Health and Safety
SHS-7, SOC-2, SOC-3, SOC-4 403-9, 410-1
Rights and
Interests and
Development Employee Development SOC-4, SOC-7 404-1, 404-2

Localisation and
SOC-4, SOC-5, SOC-15 405-1
Diversity

Community Impact SOC-1, SOC-3, SOC-9, SOC-10, SOC-11,


410-1, 413-1
Management SOC-12, SOC-13

Social and Community


SHS-2, SOC-13 201-1, 203-1, 203-2, 413-1
Welfare Investment
Social
Contribution GOV-3, GOV-4, SHS-1, SHS-2, SOC-1, SOC-3,
Overseas Community
SOC-4, SOC-5, SOC-9, SOC-10, SOC-11, 203-1, 203-2, 204-1, 207-1, 410-1, 413-1
Construction
SOC-12, SOC-13, SOC-14, SOC-15

Customer Service SHS-5, SHS-6 416-1, 416-2, 418-1

GOV-1, GOV-3, GOV-4, CCE-4, CCE-5, CCE-6, 2-7, 2-8, 201-1, 203-1, 205-2, 205-3, 302-1,
ENV-1, ENV-2, ENV-5, ENV-7, SHS-1, SHS-2, 302-3, 302-4, 303-2, 303-3, 303-5, 305-1, 305-2,
Performance Data
SHS-3, SHS-5, SOC-4, SOC-5, SOC-7, SOC-13, 305-4, 305-7, 306-5, 401-1, 401-3, 403-1, 403-2,
SOC-14, SOC-15 403-3, 403-8, 403-9, 404-1, 405-1, 416-2

Independent Practitioner’s
2-5
Assurance Report

120
APPENDIX
We strictly complied with applicable laws and regulations. Taking into account our Company’s situation, we established rules
and regulations related to employment, branding, material procurement, quality, safety, environmental protection, health, and
other aspects that cover all production units, staff and processes relevant to our Company, including but not limited to:

1 Measures of PetroChina Company Limited for Management of Labour Contract

2 Measures of PetroChina Company Limited for Performance Evaluation of Company Leaders

3 Administration Measures of PetroChina Company Limited on Production Safety and Environmental Protection Accountability System

4 Administrative Measures of PetroChina Company Limited for Supervision and Inspection of Product Quality

5 Administrative Measures of PetroChina Company Limited for Appraisal of Staff Safety and Environmental Performance

6 Regulations on Environmental Protection Management of PetroChina Company Limited

7 Measures for Environmental Monitoring and Environmental Information Management of PetroChina Company Limited

8 Regulations of PetroChina Company Limited on Environmental Protection Concerning Project Acquisition

9 Management Measures of PetroChina Company Limited for Implementation of Wastewater Discharge Permits

10 Management Measures of PetroChina Company Limited for Ecological Environment Protection of Construction Projects

11 Administrative Measures of PetroChina Company Limited for Energy and Water Conservation

12 Regulations of PetroChina Company Limited on Quality Supervision of Procured Materials

13 Regulations of PetroChina Company Limited on Detection of Occupational Hazards at Workplace

14 Regulations of PetroChina Company Limited on Occupational Health Surveillance

15 Regulations of PetroChina Company Limited for the Administration of Engineering Construction Projects

16 Regulations of PetroChina Company Limited for the Administration of Materials Supply

17 Regulations of PetroChina Company Limited for the Administration of Bid Invitation

18 Administration Measures of PetroChina Company Limited for the Suppliers

19 Measures of PetroChina Company Limited for Service Trademark Management

20 Measures of PetroChina Company Limited for Land Management

21 Regulations of PetroChina Company Limited on the Management of Industrial Water of Refining Enterprises

All data disclosed in this Report regarding quantitative indicators of emissions, energy consumption, and other aspects are
calculated in accordance with the relevant standards issued by the Chinese government, including but not limited to:
1 Statistical Report on Energy Saving and Eco-environmental Protection in Central Enterprises

2 Communique on the Second National Pollution Census

3 Guide to Accounting Methods and Reporting of Greenhouse Gas Emissions by China’s Oil and Gas Producers (Trial Implementation)

Guide to Accounting Methods and Reporting of Greenhouse Gas Emissions by China’s Petrochemical Companies (Trial
4
Implementation)
Guide to Accounting Methods and Reporting of Greenhouse Gas Emissions by China’s Chemical Production Enterprises (Trial
5
Implementation)

6 General Rule for the Calculation of Comprehensive Energy Consumption

7 Statistical Index and Calculation Method of Energy and Water Conservation

8 Unit Product Energy Consumption Quota for Petroleum Refining

9 Unit Product Energy Consumption Quota for Ethylene Plants

10 Technical Specification for Application and Issuance of Pollutant Discharge Permit

11 Inspection Guide for Identifying VOCs Pollution Sources of the Petrochemical Industry

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