Current Report by Foreign Issuer (Form 6-K)

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 6-K

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 of

The Securities Exchange Act of 1934

For the month of March 2022

CHINA PETROLEUM & CHEMICAL CORPORATION

22 Chaoyangmen North Street,

Chaoyang District, Beijing, 100728

People's Republic of China

Tel: (8610) 59960114

(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)

Form 20-F ✔Form 40-F _____

(Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)

Yes ____No✔

(If "Yes" is marked, indicate below the file number assigned to registrant in connection with Rule 12g3-2(b): 82-__________. )

N/A

This Form 6-K consists of:

A copy of 2021 sustainability report of China Petroleum & Chemical Corporation (the "Registrant"), submitted by the Registrant to the Stock Exchange of Hong Kong Limited on March 25, 2022.

Report Information

The 2021 sustainability report (hereinafter referred to "SR") is the 16th sustainability report of China Petroleum & Chemical Corporation (hereinafter referred to as "Sinopec Corp.", "the Company" or "We"). The report introduces our sustainability philosophy and policies and our environmental protection, social responsibility, and corporate governance (hereinafter referred to as "ESG") performances in 2021, and highlights on how we responded to the expectations and concerns of our stakeholders.

Report Perimeters

This report covers our business activities from 1 January to 31 December 2021, with some content from beyond this time span for continuity reasons. The information herein comes from internal data, materials from our subsidiaries, and relevant public information. Unless otherwise specified, all monetary figures shown in this SR are expressed in RMB (yuan).

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

The Company's Board of Directors reviewed and approved this report on 25 March 2022. The report is available in Chinese and English versions, and the Chinese version shall prevail in case of any conflict or inconsistency. The report can be downloaded at the website: http://www.sinopec.com/listco/en.

References

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

Disclaimer

This report includes certain forward-looking statements with respect to the results of our business operations and certain plans and conditions. All statements that address activities, events or developments that we expect will or may occur in the future, other than statements of historical fact, are forward-looking statements and by their nature involve risk and uncertainty. This means that actual results may differ materially from those indicated in the forward-looking statement due to a number of factors and uncertainties. The forward-looking statements are made by 25 March 2022 and the Company undertakes no obligation to update these forward-looking statements unless required by an appropriate regulatory authority.

Contents

About Us

Sinopec Corp. is one of the largest integrated energy and chemical companies in China that headquartered in Beijing. The Company was listed in Hong Kong, New York and London Stock Exchanges respectively in October 2000, and in Shanghai Stock Exchange in August 2001.

Letter from Chairman

Dear Friends,

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

Looking back in 2021, confronted with the severe challenges of the Covid-19 pandemic, climate change, energy security, etc., people around the world desired for green and low-carbon developmentmore than ever. The Chinese government attached great importance to the implementation of the UN 2030 Agenda for Sustainable Development, succeeded in eliminating absolute poverty, made steady progress in transition towards green and low-carbon development, contributed to the global fight against the pandemic, and promoted the building of a community with a shared future for mankind. As a LEAD member of the United Nations Global Compact and a major player in the energy and chemical industries, Sinopec Corp. embraces green development transformation, takes "net zero" of carbon emissions as the ultimate goal and firmly devotes to a green, low-carbon, safe, responsible, and high-quality growth path to the sustainable development of our society. During the last year, we vigorously implemented our world-leading development strategy, actively integrated into the new development paradigm, and got good results in promoting high-quality development. We achieved the best performance in the past decade, further integrated our business development with ESG and made new progresses in key areas such as corporate governance, technological innovation, energy supply, green development,etc..

Focusing on compliance and efficiency, we continued to improve governance efficiency. We elected new members to the Board of Directors and the Board of Supervisors and made appointments to senior management, enhancing diversity on the board level and all independent directors fulfilled their duties with diligence. We optimized a number of corporate governance practices, promoted the construction of the compliance management system, and enhanced the effectiveness of the internal controls. We further strengthened the ESG governance and deepened the benchmarking programme of improving management, further enhancing the management efficiency. We constantly reinforced planning and coordination of the overall supervision to better serve supervisory duties, and strengthened communications with our stakeholders to maintain the Company's transparency.

Focusing on innovation-driven development, we achieved fruitful results. Aiming to become a technology leading company, we continued to deepen reform of our technology management mechanism, expedite the construction of new R&D institutions and tech incubators, and effectively stimulated the innovation vitality. We vigorously promoted research into core technologies in key areas such as exploration and development, new chemical materials, new energy, green and low-carbon development, etc., and made significant progresses in shale oil exploration and development, direct catalytic cracking of crude oil to ethylene, high-end carbon materials, medical materials, proton exchange membrane electrolysis hydrogen production technology, and accelerated the layout of such cutting-edge technologies such as fuel cells. Development and Industrial Application of Megaton-Scale Steam Cracking and Recovery Technology for Complex Feedstocks and other six technological projects won the State Science and Technology Award. In 2021, we were granted with a record high of 4,853 patents, ranking the top among China's large enterprises.

Focusing on sustainable and reliable energy supply, we endeavoured to build a diversified supply system. We intensified exploration and development of oil and gas, increased the reserves and production, and enhanced reserve capacity, providing a strong guarantee for the stable development of society and economy. We promoted the transition to low-carbon energy and actively coordinated the development of natural gas production, supply, storage, and marketing, yielding a continuous share increase of natural gas in the total production of oil and gas production. To enhance the green energy supply capacity, we increased the supply of natural gas and actively advanced the layout of the hydrogen industry, constructed eight hydrogen supply centres and accelerated the development of photovoltaic projects according to local conditions, and gradually promoted the supply of biomass

energy. We are dedicated to transforming ourselves into an integrated energy service provider for oil, gas, hydrogen, electricity and non-fuel businesses and becoming a leader in clean energy supply to provide safer, cleaner, and more diverse energy for social development.

Focusing on green and low-carbon development, we endeavoured to build a clean and beautiful home. We actively promoted the green and clean development strategy and the Green Enterprise Campaign, deepened the pollution prevention and control and ozone pollution control action, and the emissions of major pollutants and the amount of industrial freshwater consumption continued to decline and the solid waste was disposed by 100%. We took wellordered steps to carry out actions for carbon peaking and carbon neutrality: actively implemented the "Energy Efficiency Improvement Plan" and enhanced the control of total energy consumption and energy intensity; built the million-tons CCUS demonstration project to further promote the emission reduction and utilisation of carbon; strengthened the management of methane emission control and jointly established the methane emission control alliance of Chinese oil and gas enterprises; and continuously improved the carbon asset management and enhanced the carbon absorption capacity of forest and grass.

Focusing on safe and healthy development, we improved intrinsic safety management. We comprehensively promoted the establishment of the HSE management system, published the HSE Management System Handbook, conducted the three-year safety rectification programme, accelerated the hidden danger treatment progress, and improved the capability of safety risk control. We further strengthened the safety qualification inspections of contractors to improve management, and enhanced operation safety management. We developed a special safety supervision mechanism, eliminated workplace safety hazards, and improved the deployment of safety equipment, improving the management of employees' health. We strictly continued the routine pandemic control measures, and effectively addressed the impact of catastrophic floods and typhoons. We maintained safe and stable operations throughout the year.

Focusing on serving the people for a better life, we fulfilled our social responsibilities as a corporate citizen. Adhering to the principle of putting the people first, we are committed to providing high-quality public products, closely combining our high-quality development with satisfying the people's needs for a better life, and fulfilling our responsibilities as a large enterprise. We expanded cooperation with our industrial chain partnerships to lead the high-quality industry development. We developed three distinctive brands of industrial support, education support, and marketing support to promote rural revitalization. We made efforts to fight against the pandemic, provided rescue and relief to disaster victims, and strengthened flood control and disaster relief, and promoted public welfare programmes such as Warm Stations Programme and Driver's Home Programme for Truck Drivers, bringing security and happiness to people. As an official partner of the Olympic and Paralympic Winter Games Beijing 2022, we provided comprehensive clean energy and executed the concept of Clean Energy for the Winter Olympics and Paralympics.

Looking ahead to 2022, Sinopec Corp. will fully and faithfully implement the new development philosophy, better integrate ESG into strategy and operation, and continuously improve our ESG management and performance. We will continue to integrate reform and development with corporate governance, energy supply with green development, and transformation and upgrading with technological innovation. Adhering to the principle of openness, sharing, and win-win cooperation, we will work together with stakeholders to explore leading ESG practices for sustainable development, and vowing to make new achievements in promoting sustainable economic and social development. We cherish your valuable suggestions for the Company's sustainable development, and look forward to joining hands with you to build a better life andcreate a brighter future!

Ma Yongsheng

Chairman

25 March 2022

Board's Statement on ESG Governance

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

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

Board's Role in ESG Governance

The Board of Directors bears the ultimate responsibility for Sinopec Corp.'s ESG governance. The Sustainability Committee under the Board of Directors is responsible for overseeing the implementation and progress of the Company's sustainability and ESG strategies and plans, overseeing the commitments and performances of the Company on key ESG issues such as climate change, environmental protection and compliance management; overseeing key information regarding sustainability issues related to the Company's businesses and approving the Company's annual sustainability reports; coordinating with other committees and functional departments to incorporate ESG factors into internal control, risk management, strategic planning, remuneration and incentives, etc., and reporting ESG performances and major plans to the Board of Directors. The Sustainability Committee is composed of four directors, including one independent director, with Chairman of the Board serves as the chairperson of the committee. The Committee convenes at least once each year, and can hold ad hoc meetings when necessary. The Committee shall inform the Board on ESG related issues in a timely manner.

ESG Management

The Company attaches great importance to ESG management and regularly analyses ESG-related risks and opportunities in the context of macro policies, socio-economic environment, and the strategy, production and operation, and stakeholder engagement of the Company. It also carries out materiality analysis by conducting stakeholder research and expert consultation, to identify key ESG issues and continuously optimise its ESG management.

Targets, Indicators and Review of Progresses

The Company has established an ESG target management mechanism, with ESG performance indicators and regular reviews of them, covering its development plans and key tasks, such as clean energy utilisation, climate change, environmental protection, safety management, and anti-corruption and compliance, etc. To ensure the achievement of these targets, the Company signs annual performance commitment documents with management staff and subsidiaries to integrate the Company's key ESG performance indicators, such as workplace safety, energy conservation and environmental protection, and operation compliance, as the KPIs for key management staff. To ensure the reliability of our ESG performance indicators, the Company hired KPMG Hua Zhen LLP to conduct an independent assurance of the Sinopec Corp. 2021 Sustainability Report, and issued independent assurance opinions regarding 17 ESG performance indicators of the Company.

China Petroleum & Chemical Corporation Board of Directors

0 25 March 2022

1. Corporate Governance

Sinopec Corp. has established a solid corporate governance structure. The Company routinely optimises basic systems such as the General Meeting of Shareholders, the Board of Directors, and the Board of Supervisors. To lay a solid foundation for sustainable development, the Company strives to integrate sustainability concepts into its development strategy, corporate culture, and all aspects of day-to-day operation, and actively protect the legitimate interests of investors, communities, customers, employees, and other stakeholders.

1.1 Development Strategy

Adhering to the development concept of "innovation, coordination, green, openness and sharing", the Company further implements the six strategies including "value creation, market orientation, innovation driven, green and clean, open cooperation and talent-cultivation", expedites formation of the development pattern of "One Foundation of energy and resources, Two Wings of clean fuels and advanced chemicals, and Three Growth Engines in new energy, new materials, and new economy", and strives to build a world-leading clean energy and chemical company.

Development Strategies of Sinopec Corp.

1.2 Governance System

Sinopec Corp. strictly abides by the Articles of Association and provisions on the supervision and administration of securities at both domestic and international levels, and constantly improves its corporate governance system. In 2021, the Company completed the succession of the Board of Directors and the Board of Supervisors with the members of the eighth Board of Directors and the Board of Supervisors elected, adjusted the setting of Board Committees, and strengthened the corporate governance structure.

1.2.1 Board of Directors

The Company continues to optimise the Board's composition, standardise relevant mechanisms for the Board and its committees, improve the functions of the committees, and attach importance to the role of Independent Directors, laying a solid foundation for the sustainable development of the Company. The General Meeting of Shareholders of Sinopec Corp. approved and adopted the Articles of Association and the Rules of Procedure of the Board of Directors to establish legally binding provisions on the composition, functions and authorities, rules of procedure, and other related matters of the Board and its committees.

In 2021, the CSR Management Committee of the Board was restructured into the Sustainability Committee. The eighth session of the Board of Directors approved the amendments to the working rules of the Nomination Committee and the Sustainability Committee.

Effectiveness of the Board

To ensure the interests of the Company, its shareholders, as well as other stakeholders, the Board promotes the diligence of Directors through upgrading policies and improving working mechanisms. The Company regularly prepares the report of the Board and issues Board's reports and annual reports to fully reflect the work performance of the Board.

Diversity of the Board

The Company has formulated the Board Diversity Policy, which stipulates that members of the Board shall be nominated and appointed based on the capabilities and experience necessary for the overall optimum operation of the Board, while also taking into account the targets and requirements for the Board's diversity. The Company's consideration of the diversity of the Board includes but is not limited to professional experience, skills, knowledge, length of service, regions, cultural and educational backgrounds, gender, age, and other factors. The present Board of Directors has extensive experience in different industries both home and abroad. Their professional backgrounds include petroleum and petrochemicals, economics, accounting, and finance, all of which are beneficial to ensuring the scientific decision-making of the Board. By the end of 2021, the proportion of female Directors in the Company was 10%.

Independence of the Board

The Company has established a solid independent non-executive director system. Independent non-executive directors are chosen from prominent personnel and industry experts both home and abroad in strict accordance with the election procedures and terms of appointment stipulated in the Articles of Association. The number of independent non-executive directors shall account for at least one-third of the Board's total members. The Company requires the nominators to express their opinions on the qualifications and independence of the nominees as independent directors, and the nominees shall make a public statement to declare that they do not have a relationship with the Company that would influence their independent and objective judgment.

The Company's Terms of Reference of the Independent Non-Executive Directors require that independent non-executive directors fulfil their duties in good faith. When expressing independent opinions on company affairs, they should pay particular attention to the following matters: nomination and appointment of directors, appointment or dismissal of senior management personnel, remuneration of directors and senior management personnel, major related-party transactions, issues that may harm the rights and interests of minority shareholders, etc.

As of the end of 2021, the Company had four independent non-executive directors in the Board, accounting for 40% of its total members. Independent non-executive directors fully participate in the work of five committees of the Board, three of whom serve as chaireperson of the Remuneration and Appraisal Committee, the Audit Committee, and the Nomination Committee respectively.

1.2.2 Board Committees

The Company has established five committees under the Board, which are the Strategy Committee, the Audit Committee, the Nomination Committee, the Remuneration and Appraisal Committee, and the Sustainability Committee. The committee conducts research on professional matters and presents opinions and suggestions to the Board for decision-making. The members of the Board committees are directors of the Company. In 2021, the Company has inspected the duties and composition of each Board committee, broadened and expanded the scope of their duties, replaced the CSR Management Committee with the Sustainability Committee to optimise and expand its duties, and further promoted the in-depth integration of sustainability issues with the Company's operations.

Strategy Committee

•Making recommendations to the Board on the long-term development strategies and significant investment decisions of the Company.

•The Strategy Committee consists of eight directors, including Chairman of the Board, who serves as chairperson of the committee, and three independent non-executive directors, who serves as members.

•In 2021, the Strategy Committee convened one meeting in total, with a 100% attendance rate.

Audit Committee

•Responsible for proposing to hire and replace external auditing agencies, supervising the Company's internal audit system and its implementation, handling the communication between internal auditing and external auditing agencies, reviewing the Company's financial information and its disclosure policies, and reviewing the Company's internal control system, etc.

•The Audit Committee consists of four independent non-executive directors, including one independent non-executive director who is an accounting professional.

•In 2021, the Audit Committee convened five meetings in total, with a 100% attendance rate.

Nomination Committee

•Making recommendations to the Board on the size and composition of the Board, as well as the selection criteria, procedures and candidates for directors and senior management personnel based on the Company's requirements. Extensively searching for qualified candidates, reviewing candidates for directors and senior management, and making recommendations to the Board of Directors.

•The Nomination Committee is composed of three directors, with an independent non-executive director serves as chairperson of the committee.

•In 2021, the Nomination Committee convened two meetings in total, with a 100% attendance rate.

Remuneration and Appraisal Committee

•Researching the evaluation criteria for directors and senior management, conducting evaluations and making recommendations. Researching and reviewing the remuneration policies and plans of directors, supervisors and senior management.

•The Remuneration and Appraisal Committee is composed of three directors, with an independent non-executive director serves as Chairperson of the Committee.

•In 2021, the Remuneration and Appraisal Committee convened one meeting, with a 100% attendance rate.

Sustainability Committee

•Making recommendations to the Board on major decisions related to the Company's sustainable development. Supervising the implementation and progress of the Company's sustainable development strategies and plans. Supervising the Company's commitment and performance on key issues such as climate change, health and safety, and social responsibilities.

•The Sustainability Committee is composed of four directors, including Chairman of the Board, who serves as chairperson of the committee, and the remaining three members are comprised an executive director, a non-executive directors and an independent directors respectively.

•In 2021, the Sustainability Committee convened one meeting, with a 100% attendance rate, and reviewed the important sustainability issues of environment protection and anti-corruption.

Based on the relatively unified basic salary system, Sinopec Crop. has developed a salary distribution system that is based on job evaluation, performance contribution, and capability improvement.

1.2.4 Conflict of Interest Prevention

The Company requires directors, supervisors, and senior management personnel to act in good faith when performing their duties, avoid putting themselves in conflict of interests situations, and fully perform their duties such as giving priority to the Company's best interests, not exceeding their authorities, and not seeking personal gains from the Company's property.

The Board of Supervisors is responsible for overseeing and inspecting the Company's business activities in accordance with laws and regulations and the Articles of Association and inspecting and correcting the performance of the duties of the Board and management personnel. The members of the Board of Supervisors are supervisors elected by the General Meeting of Shareholders and supervisors democratically elected by employees.

1.3 Business Integrity and Operation Compliance

Sinopec Corp. adheres to the rule of law and the integrity culture of "honouring agreements and operating compliance", and considers integrity and compliance management as a critical cornerstone of the Company's long-term stability and growth. The Company continues to improve compliance management policies and systems, foster a good compliance culture, implement a "zero tolerance" policy towards corruption and violations of business ethics, and strictly deal with relevant violations of law and discipline, striving to eliminate all forms of corruption and promote integrity and compliance management.

1.3.1 Compliance Management System

The Company has fully deployed and promoted the development of a compliance management system. All directly associated enterprises had developed a compliance management system construction plan. Throughout the reporting period, the Company had no major legal violations.

Process of compliance management inspection and evaluation

1.3.2 Employee Codes of Conduct

The Company has formulated the Employee Codes of Conduct, which provides behaviour guidelines for employees in areas such as health and safety, environmental protection, business conduct, ethical standards, workplace protocols, quality requirements, confidentiality, etc., and requires all employees to adhere to relevant rules such as business integrity, anti-discrimination, and information confidentiality. Any employee who violates the Employee Codes of Conduct will face disciplinary measures under the Sinopec Regulations on Punishment for Violations of Disciplines and Rules. In circumstances where the offender may be charged with a crime, the offender will be transferred to the judicial system for legal liabilities.

In 2021, the Company revised and improved the Integrity and Compliance Management Handbook, which focuses on key areas such as safety, environment, antitrust, anti-corruption, taxation and assets, securities, and intellectual property rights. The Company has specified 54 codes of conduct that the Company should follow and 50 codes of conduct that staff should abide by, and further emphasised the purpose and significance, formulation basis, and relevant systems of compliance management.

1.3.3 Anti-Corruption Management System

The Company strictly abides by China's anti-corruption laws and regulations and the anti-corruption and anti-bribery laws applicable to the countries and regions where it operates, fully supports the United Nations Convention against Corruption, the United Nations Global Compact, and other relevant initiatives, complies with the business integrity and anti-corruption regulations and commitments of its business partners. The Company also advocates for an integrity culture, has a "zero tolerance" approach to corruption, and is always working to strengthen its anti-corruption compliance system and management procedures to eliminate corruption at its source.

Anti-Corruption Organisation System

The Company continues to promote the reform of anti-corruption supervisory system and mechanism and stipulates that the Board is responsible for overseeing and promoting the company's anti-corruption efforts. With Chairman of the Board in charge, Sinopec Supervision Committee was established to formulate anti-corruption and integrity guidelines and key measures, identify compliance risks, convene regular committee meetings, research, deploy key supervision tasks, and oversee the timely rectification of problems found. The Company has set up a Supervision Department to manage and supervise anti-corruption daily, regularly report to the Supervisory Committee and the Sustainability Committee and conduct accountability assessment for the anti-corruption and integrity management at subsidiaries. All subsidiaries have set up supervision institutions or equipped with full-time or part-time employees to carry out anti-corruption activities in accordance with laws and regulations. In March 2022, the company's anti-corruption and compliance management and its performance in 2021 will be reviewed by the Sustainability Committee.

The Company continues to develop its internal supervision system and regularly researches and deploys key supervision tasks, ensuring directors, supervisors, senior management personnel, and staff are properly supervised. The Company's Supervision Department and other institutions are also under the supervision of the Board of Directors, the Board of Supervisors, and staff, effectively standardising their behaviour by optimising the internal supervision and restriction mechanism and processes.

Anti-Corruption Policy System

The Company continues to strengthen and improve its anti-corruption and compliance policy system to provide a system that guarantees sustainable and healthy development. In 2021, the investment and operation management system, the supervision system of management personnel's benefits and business expenses, and other relevant systems were revised to effectively reduce the risk of corruption. In addition, employees who are also CPC members also need to strictly abide by party regulations, such as the CPC Code of Integrity and CPC Self-Discipline, the CPC Regulations on Disciplinary Actions, and the CPC Accountability Regulations, and other regulations, and are put under relevant supervision accordingly.

Anti-Corruption Risk Assessment

The Company regularly conducts extensive risk assessments including anti-corruption risk. The Supervision Department regularly reports the overall state of anti-corruption and important matters to the Sustainability Committee and the Board. In 2021, the anti-corruption risk assessment results showed that through

comprehensively strengthening the anti-corruption education, continuously improving the anti-corruption compliance system, deepening daily supervision, and organising special governance in relevant fields, the overall risk of the Company had been controlled, the management in relevant fields had become more strict and standardised, and the Company's governance system has been further improved.

Anti-Corruption and Compliance of Supply Chain

The Company has developed a series of systems related to the anti-corruption code of conduct for contractors and suppliers, including Sinopec Management Regulations on the Letter of Responsibility for Business Ethics, Sinopec Management Measures for Market Integrity System of Construction Projects, Sinopec Management Regulations on Bidding and Submission of Tendering for Construction Projects, Sinopec Management Measures for Material Procurement and Resources Supply, etc. The Company has established clear policies and procedures for dealing with conduct that violate anti-corruption regulations. Depending on the severity of the circumstances, the procedures include warning, suspension or cancellation of business cooperation, listing on the "blacklist", reporting to the judicial authorities for criminal liability, etc.

The Company signs the Letter of Responsibility for Business Ethics with contractors and suppliers to promote integrity and transparency in procurement. The Letter of Responsibility for Business Ethics is legally binding as an appendix to the procurement contract and agreement. Additionally, a third-party commercial credit evaluation institution is introduced to evaluate the compliance and trustworthiness of contractors and suppliers in terms of basic qualification, business performance, abnormal operation, administrative sanction, and a penalty for faith-breaking, among other factors, to provide comprehensive credit ratings and to establish a mechanism of incentive for trustworthiness and punishment for faith-breaking, thereby effectively mitigating business risks. In 2021, 2,735 contractors and suppliers passed the corporate credit certification, bringing the accumulative number to 12,152. In 2021, three suppliers were penalised for violating the Company's regulations on business ethics.

Anti-Corruption Training

The Company strives to update anti-corruption training methods through anti-corruption and integrity training at different levels and various fields. The combination of integrity training with business training continuously enhances the anti-corruption awareness of all employees. In 2021, the Company and its subsidiaries carried out 2,509 anti-corruption courses, totalling 15,363 hours and maintained a 100% anti-corruption training coverage rate. In 2021, the number of corruption lawsuits filed and concluded against company employees was zero, and 54 people were disciplined for violating the Company's anti-corruption rules.

1.3.4 Petition and Whistleblowing Mechanism

1.3.5 Tax Management

The Company has formulated and implemented the Sinopec Tax Risk Management Guidelines, requiring strict compliance with the taxation regulations of the place where it operates, rigorous accounting of taxes and charges, and timely tax filing. Additionally, the Company paid close attention to changes in the tax laws and regulations of the jurisdiction in which it operates and analysed its tax risks on a timely basis to ensure tax payment compliance.

The company's annual tax payment information is disclosed through its quarterly, semi-annual, and annual reports to ensure that its stakeholders have timely access to this information. Under the relevant provisions of the British Disclosure Rules and Transparency Rules, the Company disclosed a Resource Country Government Payment Report on the London Stock Exchange website. It made relevant announcements on the Shanghai Stock Exchange and the Hong Kong Stock Exchange subsequently, listing the payments that the Company had made to different governments because of its business activities. In 2021, the Company had no major tax-related litigation or arbitration incident.

1.3.6 Intellectual Property Protection

The Company attaches great importance to intellectual property protection. It strictly abides by the Civil Code of the People's Republic of China, national criminal law, tort liability law, patent law, trademark law, copyright law, anti-unfair competition law, and other relevant laws and regulations related to intellectual property protection. Based on the current legal norms, the Company amended the Sinopec Measures for Patent Management. It issued the Opinions on Strengthening the Legal Protection of Intellectual Property Rights to effectively standardise the Company's patent management and clarify the general approach, objectives, and specific measures of the legal protection of intellectual property rights. In addition, the Company also prepared and issued the annual list of compliance risks of intellectual property laws in 2021 to prevent and deal with relevant risks effectively.

1.4 Risk Management and Internal Control

Sinopec Corp. continues to strengthen comprehensive risk management and strives to improve the risk management system, establish risk identification and response mechanism, cultivate risk management culture, and support the Company's sustainable development. The Company carries out comprehensive identification of primary and significant risks and critical points of annual risk management every year and prepares comprehensive risk management reports. In 2021, the Company had no significant risk incident, and its effectiveness of internal control continued to improve.

1.4.1 Comprehensive Risk Management

1.4.2 Internal Control System

1.5 Sustainability Management

Sinopec Corp. is committed to fully integrating the development concepts of green, safety, low-carbon, and responsibility into the Company's development strategy and its production and operation, continuously improving ESG governance structure and ESG governance policies, and tracking and promoting key ESG performance, working together with stakeholders to create sustainability value.

1.5.1 ESG Governance Structure

The Company continues to promote the integration of ESG and its governance system, improve the ESG governance structure, and form top-down sustainability management and practice system. The Company replaced the CSR Management Committee with the Sustainability Committee in 2021 and expanded its responsibilities, making it directly accountable for sustainability management, and reviewed the important sustainability issues of environment protection and anti-corruption during the year.

1.5.2 Stakeholder Engagement

Stakeholders of Sinopec mainly include government and regulators, shareholders and investors, customers, employees, communities, etc. The Company has established various channels for regular and special communication with multiple stakeholders to thoroughly understand their demands and expectations.

1.5.3 Materiality Analysis

The Company has formulated the materiality analysis process on sustainability issues. Through three main steps of identification, evaluation, and screening, the Company focuses on sustainability issues significant to itself and its stakeholders and provides information disclosure in response to this report. The sustainability issues in 2021 have no significant changes compared with those in 2020. The major changes come from the more in-depth interpretation of the issues under the context of the national development trend and the Company's development focus, such as "digital transformation" and "promoting common prosperity".

1.5.4 SDGs Mapping Table

1.6 Technological Innovation

Sinopec Corp. is committed to building a technology-leading enterprise. The Company continues to deepen the reform of its technology system, optimise the allocation of technical resources, accelerate the research of core

technologies, and strengthen breakthrough basic research, continuously improving innovation efficiency to support and lead the high-quality development of the Company.

1.6.1 Stimulating Innovation Vitality

The Company is continuing to strengthen the reform of its technology system and experiment with new methods of scientific study. The Company strives to establish multi-disciplinary collaborative research teams, implement key research mechanisms, establish incubation companies based on fundamental research projects, and explore dividend and other incentive mechanisms for technology enterprises by integrating high-quality scientific research resources.

Moreover, the Company strengthens the assessment of subsidiaries in the construction of technological innovation system, R&D investment, core technology research and achievement transformation, intellectual property management, formulates annual technological innovation assessment objectives in various fields, encouraging the subsidiaries to carry out scientific and technical research and achievement transformation actively.

Chairman Ma Yongsheng visited the New Material Synthesis Laboratory of Sinopec Beijing Research Institute of Chemical Industry in 2021.

1.6.2 Research on Key Technologies

The Company continues to focus on the research of critical technologies. Over the last three decades, the Company has successfully transformed over 200 significant complete sets of technologies, thereby encouraging the transformation and upgrading of the industrial chain. In 2021, the Company successfully realised nine key research projects in oil and gas exploration and development technology, oil refining technology, chemical material technology, public technology, etc.

The Company strives to strengthen its leading role in low-carbon technology innovation. In 2021, the Company made a series of technical breakthroughs in CCUS technology, renewable energy-related technologies such as hydrogen energy, energy storage technology, biomass energy, and solar power, as well as new energy vehicle-related technologies such as power battery materials and degradable plastics, effectively promoting the green transformation and upgrading of society.

In November 2021, Sinopec Corp. won six "Science and Technology Advancement Awards" and one "Technological Invention Award" under the "State Science and Technology Award in 2020" issued by the Ministry of Science and Technology.

1.6.3 Enhancing External Cooperation

The Company took proactive steps to integrate into the global innovation network and enhance its innovation capabilities in the open and cooperative innovation ecosystem. By the end of 2021, the Company has successively joined international academic organisations and institutions, including the International Synthetic Rubber Association (IISRP), International Union of Pure and Applied Chemistry - Committee on Chemistry and Industry (IUPAC-COCI), Society of Petroleum Engineers (SPE), and actively participated in variety of related activities. Moreover, the Company further expanded the technical exchanges and cooperation with internationally renowned research institutions to support its technology-leading development.

1.7 Digital Transformation

Sinopec Corp. has further promoted integrating digital technology, industrial technology, and its core business. With the new model of "data + platform + application," the Company carried out digital transformation centring on the whole industrial chain and promoted management innovation, business innovation, and commercial model innovation through digital technologies, providing innovative energy for high-quality development of the Company.

In 2021, the Company mainly focused on big data and artificial intelligence, established an innovation platform of artificial intelligence joint R&D centre, carried out collaborative research and talent training from the aspects of data mining and utilisation, process simulation and optimisation, intelligent perception, and advanced control, intelligent unmanned system, etc. in the field of energy and chemical industry, and cultivated innovative application achievements of intelligent technology through the in-depth integration of industry, universities, and research institutions.

2. Addressing Climate Change

2.1 Climate Action

Sinopec Corp. activity implements the green and clean development strategies, sets "net zero" emission of carbon as its primary goal, continues to promote the clean utilisation of fossil energy, scaling-up of clean energy, and low-carbon production process, so as to achieve the high-quality realisation of the carbon peaking and carbon neutrality targets, contributing its bit for the global response to address climate change. Referring to the recommendations from theTask Force on Climate-related Financial Disclosures (TCFD), the Company systematically discloses its governance structure, management strategies, risks and opportunities, and actions and progress related to addressing climate change.

2.1.1 Climate Governance Structure

Pays close attention to the risks and opportunities posed by climate change, the Company has taken the initiative to integrate climate change into its strategic planning, comprehensive risk management system, and daily operation and management; established a climate governance structure consisting of the Board of Directors, senior management, Headquarters and subsidiaries; and clarifies relevant roles and responsibilities to ensure the integration of climate change into the Company's governance system, effectively manage climate risks and enhance the effectiveness of its climate strategy.

2.1.2 Climate Risk Analysis

2.1.3 Climate Action Strategies

Sinopec Corp. proactively embraces green transformation, takes "net zero" of carbon emissions as the ultimate goal and strives to accelerate its low-carbon competitiveness.

Sinopec's Carbon Peaking and Carbon Neutrality Road Map

2.1.4 Indicators and Targets

In the Green Enterprise Action Plan formulated in 2018, the Company has set greenhouse gas emission reduction targets for the period of 2018 to 2023 as a scientific guidance for its greenhouse gas emission reduction progress.

2.2 Reduce Greenhouse Gas Emission

Sinopec Corp. attaches great importance to greenhouse gas emission management and strives to build a scientific

carbon asset management system. It has established a series of management policies, such as the Sinopec Carbon Emission Management Measures, the Sinopec Carbon Emission Trading Management Measures, and the Sinopec Carbon Emission Evaluation Management Measures for Fixed Asset Investment Projects. Based on comprehensive mapping and evaluation of its existing carbon emissions data, Sinopec scientifically coordinates its efforts in energy conservation and carbon reduction, methane emission control, CCUS, and carbon trading, to further reduce greenhouse gas emissions.

2.2.1 Carbon Emission Monitoring and Management
The Company places a high emphasis on carbon mapping and audit and closely monitors annual carbon emissions using data obtained, and incorporates carbon emission reduction measures into its overall production and operation plan. In 2021, the company continued to carry out carbon mapping and carbon audits across all production units.

Product Carbon Footprint

Sinopec Corp. continues to conduct carbon footprint accounting and evaluation of petrochemical products. It has developed product carbon footprint accounting and evaluation methods and accounting models for jet fuel, lubricating oil base oil, polypropylene, and xylene. It has conducted a full-scale assessment of greenhouse gas emissions over the product's complete life cycle, and used from the carbon footprint data to explore optimisation possibilities, so as to support the energy conservation and carbon reduction of the Company. In 2021, Sinopec Corp. drafted the Product Carbon Footprint and Product Category Standards - Petrochemical Products, which has been integrated into the 2021 Carbon Peaking and Carbon Neutrality Industry Standards Formulation and Revision Plan of the Ministry of Industry and Information Technology.

2.2.2 Energy Conservation

With the goal of "strictly controlling total energy consumption and improving energy efficiency", Sinopec Corp. actively promotes the Energy Efficiency Improvement Plan, implements various energy-saving and carbon reduction measures, and encourages its subsidiaries to improve energy efficiency and reduce energy consumption. In 2021, the consumption of comprehensive energy per RMB10,000 of production value of the Company reached 1.015 tonnes of standard coal¹, decreased by 1.3% year-on-year. During the year, the Company launched 544 energy-saving projects, saving 967 thousand tonnes of standard coal of energy, equivalent to a reduction of 2.38 million tonnes of carbon dioxide emissions.

Note1: The 2021 data were calculated based on constant price in 2020.

Optimise Energy Management Policy System

Optimise Energy Structure

The Company actively promotes the structural transition towards clean and low-carbon energy, develops new energy projects, and gradually replaces coal with renewable energy such as wind energy and solar energy. Regarding existing coal powered generation units, the Company continuously implements efficiency upgrades to improve energy efficiency.

Innovate on Energy-saving and Low-Carbon Technologies

The Company actively develops and promotes innovative energy-saving technologies, focuses on key development of energy-saving methods, technologies and equipment, implement pilot and demonstration projects, and continuously promotes and applies mature and practical energy-saving methods, technologies and equipment, such as integrated regional energy efficiency improvement of oil and gas fields, energy system optimisation, low-temperature heat utilisation, comprehensive energy-saving treatment of industrial cooling water system, and energy-saving upgrade of key energy-consuming equipment.

2.2.3 Carbon Capture, Utilisation and Storage (CCUS)

Sinopec Corp. attaches great emphasis on CCUS, and has intensified R&D investment and implemented key projects focusing on key CCUS technologies and their industry-scale application, aiming at building a demonstration project of the whole CCUS industrial chain. With an early start in CCUS technological research and engineering practice, the Company has developed certain advanced carbon capture technologies, at the forefront in China, and accumulated extensive engineering application experience.

In 2021, the Company's refining and chemical subsidiaries continued to implement the recovering and utilisation of high concentration carbon dioxide generated by hydrogen production and synthetic ammonia production devices, capturing 1.5198 million tonnes of carbon dioxide. The Company's oilfield subsidiaries used 307,600 tonnes of carbon dioxide for oil displacement and increased oil extraction by 88,700 tonnes. In addition, in January 2022, the Company successfully completed the construction of the million-tonne CCUS project at Qilu Petrochemical's Shengli Oilfield, making contribution to the development of a safe and reliable domestic CCUS technology system and industrial cluster with low cost and low energy consumption.

In the future, the Company will explore the possibility of establishing CCUS technology R&D centre, develop a carbon dioxide utilisation technology innovation system in accordance with the "technology development - engineering demonstration - industrialisation" model, focus on the deployment of cutting-edge technology projects and the development of technology reserve, such as CCUS+ new energy, CCUS+ hydrogen energy, and CCUS+ biomass energy; and explore the use of carbon dioxide to generate high-value chemicals and carbon dioxide mineralisation, extend the clean carbon storage industrial chain and promote the development of million-tonne CCUS demonstration bases in other regions. Sinopec Corp. strives to development a technology system based on the research of demonstration projects, so as to lead CCUS development with a complete series technical products and standardised models that can be replicated, promoted to and adopted by others.

2.2.4 Methane Emission Control

Sinopec Corp. attaches great importance to addressing climate change through controlling methane emissions. The Company has actively implemented methane emission reduction measures, comprehensively promoted measures such as methane leakage detection and repair, venting gas recycling, and closed process upgrade, striving to reduce its methane emissions intensity by 50% by 2025 (taking 2020 as the base year). In 2021, Sinopec Corp.'s methane emission reached 299.90 million cubic metres, while methane recovery reached 717 million cubic metres, with a year-on-year increase of 19.5%.

2.2.5 Participate in Carbon Trading

Sinopec Corp. actively participated in the national carbon emission trading market, developed trading plans and strategies, drafted, and issued the Sinopec Carbon Trading Administration Measures during the year, and further standardised the fulfilment of carbon quotas. The Company leveraged the advantages of its integrated system by making comprehensive arrangement based on carbon quota surpluses and shortages of its subsidiaries, and leveraged its capability expertise and established a dedicated carbon trading team. With scientifically formulated carbon trading plans and centralised management of carbon trading, the Company ensured that all its subsidiaries fulfilled their carbon quotas on schedule. By the end of 2021, Sinopec Corp. had 23 subsidiaries participated in the national carbon trading market, with a carbon trading volume of 4.56 million tonnes and a 100% carbon quota fulfilment rate.

2.2.6 Forest Carbon Sink

Sinopec Corp. fully embraces the green development concept, and integrates facility greening with building green enterprise. The Company encourages all employees to take part in nationwide volunteer tree planting, to both increase the forest reserve and maximises forest's comprehensive effects on carbon reduction, carbon storage, and ecological improvement.

2.3 Energy Transition

2.3.1 Green and Clean Energy Strategy

Sinopec Corp. takes "green and clean" as one of its core development strategies, adheres to ecological priority, green transition, and clean development, promotes the clean utilisation of fossil energy, scaling-up of clean energy, and low-carbon production process, strives to reduce energy consumption and emission intensity, and control and reduce total emissions, and actively develops and provides green, low-carbon, and environment-friendly products, allowing the Company to become an industry model for green, clean, and low-carbon development.

2.3.2 Natural Gas

As a fossil energy with low carbon emission intensity, natural gas plays a key role in the energy transition process. Sinopec Corp. is committed to planning and promoting the development of the natural gas business at a strategic level, coordinating natural gas resources and markets, promoting the development of the full-scale industrial chain system of natural gas, and striving to help increase natural gas's share in domestic primary energy consumption. In 2021, the Company's natural gas production reached 1,199.4 billion cubic feet, with an increase of 11.9% year-on-year.

2.3.3 Hydrogen Energy

The development of hydrogen energy is one of the essential paths to achieving the transformation of global energy structure to cleaner and low-carbon models. Sinopec Corp. has extensive industrial experience and competitive advantages in the hydrogen energy sector. Taking hydrogen energy as the main direction for its new energy business, the Company leverages its industry, technology, and network resources to build an integrated and collaborative operation mode, covering hydrogen energy production, hydrogen energy mobility, hydrogen energy technology, and hydrogen energy investment, through independent innovation, collaborative R&D, and strategic investment, building its own whole process industrial chain of hydrogen energy production, purification, transportation, and sales.

2050 Hydrogen Energy Vision

Progress and Achievements of Hydrogen Energy Business

In the next five years, Sinopec Corp. will accelerate the development of new energy business with hydrogen energy as the core, firmly promote the rapid development of the whole hydrogen energy industrial chain in two major fields of hydrogen energy mobility and green hydrogen refining. The Company will further strengthen cooperation with leading enterprises in new energy and hydrogen energy manufacturing, plan and layout hydrogen refuelling stations or gas-hydrogen hybrid stations, and strive to build China's leading hydrogen energy enterprise and an industry forerunner of commercial demonstration projects.

2.3.4 Photovoltaic Project

Sinopec Crop. has thoroughly implemented the "Photovoltaic+" action, fully combined rooftop photovoltaic power generation at gas stations with energy conservation, carbon reduction, and brand marketing. The Company promoted the construction of Building Integrated Photovoltaic (BIPV) on the spare space on rooftop of more than 30,000 gas stations in China, developed distributed photovoltaic power generation, and built "Carbon Neutral" gas stations. The Company plans to build 7,000 distributed photovoltaic power generation stations by 2025,

generating power to serve both the energy needs of the stations and the charging needs of electric vehicles. As the end of 2021, Sinopec Corp. has built 1,253 photovoltaic power generation stations with a total installed generation capacity of 43.8 MW.

Promote the Construction of Carbon Neutral Gas Stations

The Company carried out the "Photovoltaic +" action and build distributed photovoltaic power generation units on rooftop of gas stations, with a number of carbon neutral gas stations completed, such as the Jiaze Station in Changzhou City, Jiangsu Province, and Liuhua Station in Baise City, Guangxi Autonomous Region. The generated power not only fully offset the implied carbon dioxide emission of the purchased power of the gas station, but also partially contribute to additional reduction of carbon emissions. These stations have already passed the certification by professional authorities of its carbon neutrality.

Rooftop photovoltaic power generation unit at Jiaze refuelling station in Changzhou, Jiangsu generates 127,000 to 147,000 kWh of electricity annually

2.3.5 Biomass Energy

Sinopec Corp. actively promotes the development of biofuels and increases the production, promotion and supply of biomass energy.

2.3.6 Charging and Replacement Station

Sinopec Corp. fully grasps the development opportunities of new energy vehicles, strives to participate in the development of new energy vehicle-related businesses with a high starting point and high standards. The Company cooperated closely with leading enterprises of the industry and leveraged the location advantages of its gas stations to speed up the expansion of charging and replacement capacity, added fast charging, super-charge equipment and facilities in gas stations to help solve the charging challenge for electric vehicle owners. Regarding battery replacement, Sinopec Corp. continued to lead the industrial development and technological progress of the industry, cooperated with relevant enterprises to build C-end and B-end battery replacement stations, and actively

promoted the power bank service. In the next serval years (2021-2025), the Company plans to build 5,000 charging and replacement refuelling stations.

3. Protecting the Environment

The ecological environment supplies the materials, energy, and living space necessary for human society to thrive and develop, and it is also the home that we collectively protect. Following the concept of green and ecological development, Sinopec Corp. is committed to practicing environmental governance, promoting ecological protection, and contributing to building a beautiful China. The Company has kept improving the environmental management system, making committed efforts to prevent and control pollution, and continuously improving its environmental protection performance, contributing our bit to facilitate the ecological development and harmonious coexistence of mankind and nature.

3.1 Strengthening Environmental Management

Sinopec Corp. strictly implements laws and regulations related to environmental protection, makes strengthened efforts in developing environmental policies and management system, and has integrated environmental management into all aspects of its daily operations. In 2021, the Company made in-depth integration of Requirements and Guidelines for the Environmental Management System and the green and clean strategy, revised and released Manual for the HSE Management System, further emphasising the guidelines regarding its environmental protection efforts. The Company also formulated Sinopec Programme for Strengthening Environmental Protection, 2021-2023, for the purposes of pushing forward the construction of the environmental performance assessment system, enhancing supervision over the management of subsidiaries, maintaining the continuous progress and sound performance of its environmental protection efforts, and ensuring the harmonious coexistence between the Company and the natural environment. In 2021, the Company's environmental expenditure reached RMB 11 billion.

3.1.1 Environmental Management System

The Company continued to promote the construction of HSE (health, safety, and environment) management system, and optimised the policies and system documents related to environmental protection, which provided the necessary guarantees in terms of policies, guidelines, implementation, evaluation and assessment, to ensure the smooth operation, auditing and continuous improvement of the environmental management system. In 2021, a total of 25 subsidiaries of the Company had passed the third-party certification of the ISO14000 environmental management system.

The Company issued the "Energy and Environmental Responsibility Commitment" to its subsidiaries every year, specifying their emission reduction targets and governance tasks, and incorporating them into the annual assessment, and the Sinopec Programme for Strengthening Environmental Protection, 2021-2023 to guide its subsidiaries to carry out pollution prevention and control, and improve the effectiveness of environmental activities.

3.1.2 Management of Environmental Impact

Focusing on the goal of "zero pollution," the Company makes every effort to regulate project construction and production operations. It built a policy system covering the entire process from project entry to project exit, carried out in-depth life-cycle management of the environmental impact, and effectively avoided and reduced the adverse effects on the ecological environment and local communities.

3.1.3 Environmental Risk Management

The Company has formulated a tired environmental risk management plan, integrated environmental risks into the comprehensive risk management system, implemented a dynamic environmental risk monitoring mechanism, and achieved the management and downgrading of significant environmental by implementing environmental risk control accountabilities, optimising ecological risk management procedures, clarifying control processes for different risk tiers, and carrying out environmental risk supervision, inspection and rectification activities.

3.1.4 Environmental Complaint Mechanism

The Company actively seeks input from stakeholders throughout the project's construction process, including the government, community members, and social organisations, disclosing project information for public supervision. The Company has formulated the Sinopec Environmental Protection Management Regulations, which stipulates that "With regards to negative environmental information on environmental issues such as being listed on national and local government supervisory agendas, receipt of notices or environmental administrative penalties, excessive amounts beyond standards and violations found in government supervision and monitoring at all levels, being sued for environmental issues or being exposed by the media, etc., the Company shall report the information through the environmental protection information system within three working days. Late reporting or concealment of information shall be severely punished". Based on the local government's requirements, all subsidiaries have established the mechanism to engage local communities and the public to collect and handle opinions and make feedback accordingly regarding environmental complaints or whistleblowing on environmental violations. Significant environmental incidents shall be promptly reported to relevant departments at the headquarters to ensure its timely rectification through the joint working mechanism.

3.2 The Green Enterprise Campaign

Sinopec Corp. has listed the Green Enterprise Campaign as an essential part of implementing its green and low-carbon development strategy. After formulating the Guideline for the Evaluation of Sinopec Green Enterprises, the Company has established the Sinopec Green Enterprise Campaign Working Group to actively promote its subsidiaries to take actions and build green enterprises. In 2021, the Company continued to promote the Green Enterprise Campaign and achieved remarkable results in clean energy, green products, resource and energy utilisation, pollutant discharges and emissions, greenhouse gas emissions, and facility greening. As of the end of 2021, the Company had established 105 green enterprises, accounting for over 90% of its total subsidiaries.

Note: Take data of the year 2017 as the baseline for 2023 Targets.

3.3 Water Resources Management

The Company attaches great importance to water resources management, and has formulated and implemented Sinopec Measures for Water Resources Conservation, striving to reduce the total amount of fresh water withdrawal for industrial use by no less than 1% per year, comprehensively optimise water consumption structure, increase sewage and wastewater reuse, promote the application of water conservation technology, strengthen the management of water pollution prevention and control facilities, and vigorously promote pollution prevention and control. The Company conducts comprehensive inspections of its discharge of water pollutants in accordance with the requirements of the state pollution prevention and control campaign as well as relevant standards to ensure compliance with wastewater discharge standards. In 2021, all business units and subsidiaries of the Company reached their annual targets for comprehensive wastewater treatment with a 100% compliance rate.

3.3.1 Water Conservation

The Company follows the relevant national laws and regulations on water resources management, applies for water permits in compliance with the requirements of laws and regulations, actively takes water conservation and alternative measures to reduce source water intakes, and makes every effort to minimise losses and waste in water consumption. The Company has committed in the Green Enterprise Campaign to reducing the total amount of fresh water withdrawal for industrial use by no less than 1% per year. In 2021, the Company's fresh water withdrawal for industrial use amounted to 636.16 million cubic metres, down by 1.1% year-on-year.

3.3.2 Strengthening Sewage Treatment

The Company kept strengthening the prevention and control of water pollution risks and conducted comprehensive inspection of its discharge of water pollutants in accordance with the requirements of the national pollution prevention and control campaign as well as relevant standards. Problems identified were rectifies in a timely manner to ensure compliance. The Company implemented environmental protection and upgraded treatment projects, issued Guidance on the Management of Rainwater and Sewage Facilities at Plants in Refining and Chemical Enterprises to guide subsidiaries to implement rainwater and sewage diversion upgrade, and to continuously carry out visualisation and transformation of sewage pipe networks and upgrading of sewage plants, so as to optimise the pre-treatment effect of sewage plant while expanding treatment capacity to ensure compliance with discharge standards.

3.3.3 Groundwater Management

IIn 2021, the Company developed the corporate standard Technical Specification for Groundwater Investigation and Evaluation of Land for Corporate Use. We organized subsidiaries at all levels to continuously carry out self-

monitoring of groundwater in conjunction with the preliminary survey results of land for corporate use, as an effort to implement the system for the investigation of potential soil pollution hazards and to meet the corporate selfmonitoring requirements. After completing the groundwater investigation and administrative filing of land for corporate use, the Company screened for soil pollution hazards at solid waste sites and production facilities within a 1-kilometre range of the Yangtze River water system and a 10-kilometre range of the Yellow River water system, and cleaned up and disposed of 85,600 tonnes of solid waste in solid waste landfills.

3.4 Land Resource Management

Sinopec Corp. consistently implements the principle of "intensive, efficient and green land use." In compliance with the requirements of national land-related policies, the Company has required all subsidiaries to formulate land management rules following the actual business characteristics, clarifying the content, procedures, and responsibilities of land resource management, in a bid to realise the closed-loop management in the whole life cycle of land resources.

3.5 Control of Atmospheric Pollutants

The Company strictly abides by national and local policies, laws and standards related to air pollution prevention and control. It has formulated and strictly implemented the Sinopec Regulations for Pollution Prevention and Control, and actively followed the requirements of regulatory authorities to continuously promote emission reduction of air pollutants and prevent leakage. In 2021, all business units and subsidiaries of the Company reached the annual target for comprehensive control of exhaust gas, with a compliance rate of 99%.

3.6 Solid Waste Management

The Company strictly abides by the requirements of the new Solid Waste Law. Adhering to the principle of "reduction of use, conversion into resources and harmless treatment" for solid waste disposal, the Company kept promoting the reduction and recycled use of solid waste. To actively improve its capability to treat solid waste among its subsidiaries, the Company strengthened the whole-process management of solid waste, requiring the 100% disposal rate for hazardous waste, and included solid waste management into the energy and environmental responsibility evaluation over subsidiaries.

3.7 Prevention of Hydrocarbon Leakage

The Company has formulated the Sinopec Pollution Prevention and Control Management Regulations and Manual

for the HSE Management System, which clarify the means of controlling various pollutants including hydrocarbons and the risk identification mechanism for potential leakage hazards, to effectively prevent the risk of hydrocarbon leaks or spills.

3.8 Biodiversity Conservation

In strict compliance with the Environmental Protection Law and the United Nations Convention on Biological Diversity, the Company continuously improves the biodiversity protection policy and management rules to complete the ecological management system. It has formulated and issued Sinopec Environmental Management Regulations and Sinopec Ecological Management Measures to regulate the ecological protection work during construction, production, and operation. It also urges subsidiaries at all levels to avoid crossing the prohibited development areas as delineated by the ecological red line while requiring them to improve the supervision mechanism for ecological protection and restoration and protect the quality of ecological environment and biodiversity, to facilitate the sustainable development of the industry and society.

The Company required all construction projects involving ecologically sensitive areas to adopt strict ecological protection and restoration measures. When carrying out feasibility studies and environmental impact assessments for projects with ecological impact, related parties shall, with regards to the site (route) selection, layout, and scale of construction projects must strictly comply with the "Three Lines and One List" regulation as well as the general requirements for relevant planning and environmental impact assessment. Meanwhile, the Company required its suppliers to work on ecological protection strictly. It proposed that a construction unit be responsible for environmental protection during the project. It shall implement all environmental measures and requirements in line with the contract during the construction period.

In 2021, the Company further improved its ecological monitoring and evaluation system and the environmental monitoring network. It engaged in ecological monitoring on a pilot basis in eight subsidiary enterprises. It continuously tracked the ecological environment quality around the Puguang gas field, with a total of more than 34,000 entries of monitoring data and 2,800 comparison photos obtained so far from 73 ecological monitoring points deployed in 2021. The ecological tracking results show that the ecology of each development area in the Puguang gas field has retained its natural environmental functions. Throughout the year, there was no major incident involving the Company that was harmful to biodiversity.

4. Strengthening Safety Management

Sinopec Corp. adheres to the safety concept of "safety comes from design, management and accountability ", strictly follows the requirements of laws and regulations including the Production Safety Law and takes safety management to be the foundation of corporate production and operation. Under the guidance of the HSSE management system framework, Sinopec Corp. has strengthened the identification and prevention of safety risks, actively carried out the rectification of major safety hazards, and developed an emergency management system, to provide safety assurance for the sustainable development of the Company.

4.1 Safety Management System

Sinopec Corp. strictly builds a strong safety defence line, considers safety to be a critical aspect of its operations, and is committed to developing a first-class corporate safety management system. By continuously promoting and improving the development of the HSSE management system, Sinopec Corp. consistently optimises its safety management and performanzce, so as to create a healthy, safe, environmentally friendly, and comfortable working environment for employees.

4.1.1 HSE Management System

The HSE management approach system formulated and implemented by Sinopec Corp. includes five key components with 30 factors covering occupational health, production safety, security, and environmental protection. The system is centred account effective risk management and follows the PDCA mode of "plan, do, check and act", Sinopec Corp. integrates the closed-loop management of risks into the entire production and operation process, to achieve the whole process systematic management and control of risks.

4.1.2 Safety Risk Identification and Mitigation

Sinopec Corp. continues to optimise its safety risk identification mechanism, identifying and assessing safety risks through a two-way cycle mode that operates both "bottom-up" and "top-down" to eliminating safety vulnerabilities. Sinopec Corp. has established a dual prevention mechanism of hierarchical management and control of safety risks and troubleshooting of safety hazards and continued to promote the use of risk assessment management platform to achieve the systematic, regular, standardised, and informationalised identification and assessment of risks.

4.2 Production Safety

Sinopec Corp. attaches great importance to production safety, strictly abides by and implements laws and regulations such as the Production Safety Law Interim Measures for the Investigation and Treatment of Hidden Dangers of Production Safety Accidents, Implementation Guidelines for The Investigation and Treatment of Hidden Dangers of Hazardous Chemical Companies, and has formulated rules and regulations such as the Management Regulations on The Dual Prevention Mechanism of Hierarchical Management and Control of Production Safety Risks Investigation and Treatment of Hidden Dangers of Sinopec, to strengthen safety risk management and the identification and prevention of safety hazards, and prevent and avoid production safety accidents from happening.

4.3 Contractor Safety

Sinopec Corp. focuses on increasing contractors' safety skills, safety awareness, and business subcontracting management, and encourages contractors to improve their safety management capabilities to prevent safety accidents from happening.

In 2021, Sinopec Corp. revised its contractors management measures thoroughly, comprehensively promoted the review of contractors' QHSE systems, actively explored the management mode of contractors' self-discipline and self-improvement model, strictly required related training and certification for key personnel of contractors, and gradually built a strategic contractor pool.

There were three incidents of contractor safety accidents occurred in 2021. The Company thoroughly analysed the causes of accidents, required its contractors to strengthen their on-site safety management and management of key personnel, and seriously dealt with violations with a "zero tolerance" principle.

4.4 Logistics Safety

Sinopec Corp. is well aware that logistics is a critical link in production and sales processes, as well as an important factor in ensuring the effective operation of the Company. In 2021, the Company continued to strengthen HSSE management of its logistics service providers, requiring its carriers to improve their management capabilities.

4.5 Information Security

In strict compliance with network security, data security, and personal information related laws and regulations, the Company has developed a network security management policy and standard system centred on Sinopec Network Security Management Measures, with the issuing of management measures such as Sinopec Network Security Level Protection Management Measure, Sinopec Network Security and Informatization Assessment Regulation, Sinopec Information Security Notification Management Regulation, as well as technical specifications such as User Management and Identity Authentication,Network Equipment Security Baseline and Internet Application Security Protection.

The Company has established a Network Security and Informatisation Leading Group to lead the centralised coordination of network security efforts, review medium and long-term network security plan, annual plan, and key work, guide, coordinate, supervise and inspect the network security work of business units, and ensure the implementation of various network security tasks and responsibilities. The Company has also established a corporate network security evaluation system, with evaluation results directly related to the performance evaluation of Sinopec subsidiaries. In 2021, the Company had no instance of major network security incidents.

4.6 Security

Adhering to the overseas security concept of "people-oriented, prevention first and safe development", Sinopec Corp. continued to optimise its overseas security management system and operation mechanism, and strengthen risk assessment and control, risk prevention and assurance, emergency response and relief under the severe and complex overseas environment and the pandemic. The Company maintained the "zero death" overseas security performance for 14 consecutive years. In 2021, the online security assessment rate and pass rate of the Company reached 100%.

5. Respecting Human Rights and Cultivating Talent

Sinopec Corp. is committed to building a talent team to be future leaders through a talent-driven development strategy. The Company fully implements the principle of respecting and protecting human rights in the whole process of human resources management, actively encourages employees to participate in the Company's business decision-making, protects the legitimate rights and interests of employees, and fully respects their rights to express their ideas and participate corporate affairs. As part of its ongoing efforts to strengthen occupational health management, the Company strives to create a workplace conducive to physical and mental health for employees. It keeps providing support and assistance for employees in need and tries its best to solve the practical difficulties encountered by them in life. In addition, the Company consistently optimises its human resources layout and the talent cultivation mechanism, and strives to grow together with employees and enable them to realise their own values through competitive incentive mechanisms, sound training programmes, and smooth career development channels.

5.1 Respecting and Protecting Human Rights

Sinopec Corp. has adopted the laws and regulations related to human rights protection, the National Human Rights Action Plan and international human rights conventions as the basic principles and references for its own human rights management practices, and refrains from any disregard and trampling of human rights. We strictly abide by China's Regulation on Prohibiting the Use of Child Labour and relevant laws and regulations in overseas markets where we operate to prohibit the use of child labour. We respect the employees' right of personal freedom and the right to take leave, and prohibit the use of forced labour. We respect the rights and interests of female employees and ethnic minority employees, and strictly prohibit any form of discrimination, such as due to gender, ethnicity, religion and nationality. The Company's human rights requirements are fully applicable to Sinopec's employees, contractors and suppliers. In 2021, there were no incidents of child labour or forced labour.

In addition, the Company respects and protects the rights and interests of employees, contractors and suppliers as well as occupational health and safety in accordance with the requirements of the Labour Law of the People's Republic of China, the rules on the workplace as well as other laws and regulations to build stable and orderly harmonious labour relations.

5.1.1 Protecting Labour Rights

Sinopec Corp. strictly abides by laws and regulations, such as the Labour Law of the People's Republic of China, the Labour Contract Law of the People's Republic of China, and the Trade Union Law of the People's Republic of China, follows international conventions such as the International Covenant on Economic, Social and Cultural Rights, the Convention on the Elimination of Employment and Occupational Discrimination and the National Human Rights Action Plan as important references, and upholds the principles of equal consultation and harmonious collaboration during daily operations, ensuring proper protection of employees' rights and interests and decent work for all employees.

The Company follows the principles of "equality, voluntariness and consensus" and signs written labour contracts with employees, which specifies the content and location of work, working hours and rules for leaves and vacations, remuneration, labour protection, occupational hazard protection and other terms in accordance with relevant laws and regulations. In addition, the Company has formulated a supporting labour management

system for employees to ensure that labour contracts are strictly fulfilled and employees' rights and interests are properly protected.

In 2021, all the directly affiliated units of the Company actively organised collective negotiations. Articles of the collective contracts and special contracts were collectively negotiated within human resources and other administrative departments based on extensive solicitation of opinions from employee representatives, then voted and approved by the employee representative conference before the official signing of the contacts between labour union representatives and management representatives, ensuring that the contracts truly reflect the needs of employees and protect their rights and interests. In addition, the Working Committee of the labour union of the Company formulated and issued the Notice on Strengthening Democratic Management in the Three-Year Action to Deepen Reform, which stipulates that major matters involving the vital interests of employees must be deliberated and passed by the Workers Congress, and that the employee representative conference mechanism shall be established group-wide as the main channel for strengthening democratic supervision by employees.

5.1.2 Diversity and Equal Opportunity

Sinopec Corp. is committed to building a diverse and equal opportunity workplace, actively recruiting female, overseas and ethnic minority employees to increase workforce diversity, and providing equal opportunities and environment for all employees, providing them with an encouraging and supportive workplace to support their personal growth and career development.

The Company upholds the principle of gender equality, and ensures that female employees enjoy equal labour rights and social security benefits as their male counterparts. The Company also strictly implements the policies regarding female employees' pregnancy and maternity leaves, nursing breaks, and regular physical examinations. In addition, the Company has established a Female Workers Committee of the labour union to provide special protection for female employees. To effectively protect the rights and interests of female employees from the source, the Company requires all labour contracts and collective contracts to contain provisions for protecting the rights of female employees in order to be valid and effective. Regarding its operation, the Company attaches importance to and strengthens the supervision and inspection of labour safety and health of female employees in the production process, and continuously improves their work environments and conditions.

5.1.3 Employee Communication and Participation

Sinopec Corp. has established and consistently optimises the employee representative conference mechanism, encouraging employees to fully participate in the democratic management of the enterprise and actively contribute their wisdom and strength to the Company. In 2021, the Company held a total of 176 group-wide employee representative conferences and received more than 7,700 proposals from employee representatives on production safety, environmental protection, corporate management, production and operation, salary and benefits, and employee training, of which 3,432 were shortlisted for further review. The Company further optimized the working mechanism of closed-loop feedback for handling employee proposals, with 99.7% of the proposals handled with results. For the proposals not shortlisted, the Company would provide a timely written feedback to their submitters in explanation.

The Working Committee of the labour union of the Company actively explores ways to optimise employee complaint handling mechanism, so as to "solve minor complaints and boost synergy" and ensure that "solving minor complaints in workshops and general complaints in secondary units, and solving major complaints with the supervision of employee representative conference" with a tiered closed-loop handling mechanism including collection, processing, solving and feedback. In 2021, labour union organisations at all levels further implemented the long-term mechanism of paying visits to employees to solve practical issues for them, with a total of 17,000 problems identified through employee visits, of which 16,000 were solved. In addition, the labour union has also established contract persons at the grassroots level and regularly organises employee representatives to conduct inspections and surveys to understand the demand of front-line employees and help them solve difficulties in a timely manner.

5.2 Occupational Health

Sinopec Corp. strictly abides by the Safety Production Law of the People's Republic of China, the Occupational Diseases Prevention and Control Law of the People's Republic of China, and other relevant laws and regulations, ensures the comprehensive prevention and control of occupational diseases, actively manages employee health by integrating big health concepts with HSE management. The Company keeps deepening its mental health care for employees by comprehensively strengthening EAP programmes to provide employees in need with psychological assistance and counselling, ensuring that all employees can work and live healthily, both physically and mentally.

5.2.1 Management of Hazard Risks for Occupational Diseases

The identification, prevention and control of occupational disease hazards is an important module of the Company's HSE management. In 2021, the Company strengthened and refined its efforts the accountability system in this regard in order to strictly control occupational health risks and prevent their occurrences, putting forward the "100% in four areas" targets for health management, namely "100% detection of occupational disease hazards, 100% effective prevention and control, 100% coverage of occupational health examinations, and 100% intervention of high-risk personnel". The Company issued the Notice on Further Strengthening and Standardising Occupational Health Management to continuously strengthen the identification of occupational hazard risks and standardise the detection and monitoring of hazard factors, in addition to the efforts in the improvement of the working environment and better maintenance of equipment and facilities that are related to occupational diseases and emergency rescue. The Company clarified the management requirements for controlling serious occupational hazards in production operations, and standardized the monitoring of occupational health and the management of reporting on irregularities. The Company also attaches great importance to employees' labour protection, and has made new progress in developing protection standards and protective gears and equipment.

Upholding the concept that "exceeding requirements means hazards", the Company continuously strengthened the rectification of incidents of non-compliance with requirements through measures such as regularly following-up of rectification results, experience sharing from pilot enterprises, and the promotion of advanced management techniques and measures by producing training materials and online video lectures. The Company carried out a special study on the control of excessive noise, formulated the Guidance on the Management of Noise Hazards in Petrochemical Enterprises to strengthen the identification, analysis and assessment of noise hazards, and implemented the pilot research on noise control in chemical fibre device and petroleum engineering enterprises.

5.2.2 Management of Employees' Occupational Health

The Company actively facilitates the development of the employee health management system, requiring all department and management units to give priority to ensure employee health, as well as requiring all employees to take the primary responsibility to protect their own health. The Company has set up an Occupational Health Subcommittee under the HSE Committee to take the lead in coordinating the management of employee health. It also clearly defined the responsibility for health management in the HSE responsibility system for headquarters departments. In addition, the Company has listed "100% coverage of occupational health examinations, and 100% intervention of high-risk personnel" as key performance indicators for production safety.

In 2021, the Company carried out a series of occupational disease control and occupational health management activities, such as quality inspections of labour protection gears, video trainings on occupational health training, the Occupational Diseases Prevention and Control Law awareness week, and the Occupational Health Master event, etc. Through these events, the health awareness of all employees was further heightened, and the number of non-production deaths continued to decline. The Company also organised training courses for occupational health

management personnel for deputy directors overseeing HSE management and division heads for occupational health of subsidiaries, covering laws, regulations and policy requirements on occupational disease prevention and control, occupational health caring, occupational disease management, management of individual protective gears, detection and daily monitoring of occupational disease hazards, and application of ventilation and noise reduction technologies, etc. In addition, the Company comprehensively upgraded its health management measures, and strengthened the screening and other intervention measures for personnel at high health hazard exposures.

Regarding the prevention and control of Covid-19, the Company has established an Epidemic Prevention and Control Leading Group and an Epidemic Prevention and Control Leading Office, and strictly enforced epidemic prevention and control measures in an all-round way both home and abroad. The Company also strove to provide a safe and secure working environment for employees through measures such as flexible arrangements for working, business travel and vacations, prioritising video conferencing and telecommuting, and well-organised epidemic prevention measures, including home observation, isolation, and nucleic acid testing. In 2021, there was no incident of Covid-19 infection in the Company.

5.2.3 Care for Employees' Mental Health

Mental health is an important factor for ensuring employees' safety and health. The Company continued to explore operating modes of the Employee Assistance Programmes (EAP) and formally established the Sinopec Mental Health (EAP) Working Committee in 2020. In 2021, the Company further strengthened EAP management and expanded the coverage of EAP service, allowing more employees and their family members, including those overseas, to have psychological counselling support.

EAP Management Enhanced in All Aspects

5.3 Talent Growth

Talent is the cornerstone of enterprise development and one of its core competitiveness. Sinopec Corp. attaches great importance to human capital management, keeps implementing the talent-driven growth strategy, and strives to grow together with employees.

5.3.1 Human Resources Risk Management

Sinopec Corp. attaches great importance to contain the risk of talent loss. The Company systematically and comprehensively monitored the talent loss data in recent years to identify the patterns and root causes, and adopted a series measures to prevent and control the risk of talent loss, including providing greater room for growth, more targeted and effective incentives, the cultivation of a more supportive talent ecology with the implementation of its talent-driven strategy.

The Company formulated Sinopec Medium and Long-term Talent Development Plan in the 14th Five-Year Plan Period, and continuously optimised the cultivation mechanism and innovation environment for technological talent, focusing on high-end talent, development channels, and incentive mechanism. The Company has implemented the training plan for strategic scientists and the "Future Scientists" training plan, improved the assessment and incentive measures, and issued Opinions on Strengthening the Incentive and Supporting Mechanism for Scientific and Technological Innovation. In 2021, a number of outstanding talents of the Company won national honorary titles, including two newly elected Academicians of the Chinese Academy of Engineering, a winner of the Li Siguang Geoscience Field Award, a winner of the Chinese Skills Award, and four winners of the National Technician title. The Company also honoured a total of 80 outstanding experts, 100 winners of the Min Enze Young Scientific and Technological Talents Award, and 20 outstanding Sinopec Craftsmen.

In 2021, the Company formulated the Interim Measures on Tenure System and Contractual Management for Managers of Sinopec Directly Subordinate Enterprises and five other institutional documents to improve the selection and recruitment procedures of professional managers; formulated Sinopec Guidance on Medium and Long-term Incentives and the supporting rules, and promoted their implementation at different levels in subsidiaries, achieving remarkable results in the development of a market-oriented employment mechanism.

5.3.2 Recruitment and Talent Loss

The Company implements a differentiated talent attraction strategy, and has built three-dimensional talent attraction channels in addition to a more open and flexible talent attraction mechanism. Focusing on the strategic objectives of enterprise development and the needs for advancing key technologies, the Company sticks to the approach of targeted talent attraction focusing on high-level talent from home and abroad through the national high-level talent attraction programme and Sinopec's "Double Hundred Plan". For talents in urgent needs and shortages, the Company resorts to job market to attract mature professional talents. For its strategic talent reserve, the Company focuses its efforts on attracting outstanding college graduates.

Through a series of positive talent retention and utilisation initiatives, the Company's employee turnover rate has shown a continuous downward trend in recent years, and the brain drain problem has been gradually reversed. In 2021, the Company's employee turnover rate was 0.64%, down by 0.05 percentage points year-on-year.

5.3.3 Salary and Benefits

The Company keeps improving the employee compensation and welfare system, and pays social insurance and housing fund in full and on time in accordance with the relevant national and local policies and regulations for pension, medical care, work injury, maternity, unemployment, etc. It has established a company-wide corporate annuity system and organised its subsidiaries to establish a supplementary medical insurance mechanism according to their own conditions. It strictly implements policies and regulations related to employee welfare including maternity leave, parental leave and other issues. In terms of salary allocation, the Company implements a parallel incentive policy of salary-based and non-salary-based incentives, and has constructed a multi-dimensional salary system, including position (basic) salary, performance bonus, and medium and long-term incentive, based on the position, competence and performance of employees.

5.4 Employee Training and Growth

The Company keeps improving the high-quality education and training system for employees, consistently optimises key training programmes for management staff, technical and professional personnel, and overseas talent. The Company also actively promotes the digital transformation of its training system. In 2021, the Company organised a total of 94 training sessions under 46 key programme with a participation of 5,122 people person-times.

5.4.1 Employee Training

The Company keeps improving the high-quality education and training system for staff, consistently optimizes key training programs for managers at all levels, for technical and skilled personnel, and for international talents, and it actively promotes the digital transformation of training. In 2021, the Company organized a total of 94 training sessions under 46 key programs, participated by 5,122 people.

The Company continued to promote the reform of professional title evaluation and vocational skill level recognition, revised Sinopec Regulations for Professional Title Evaluation, Sinopec Regulations for Vocational Skill Level Recognition and other supporting policies; implemented the Skill Enhancement Program, Skill Competition Program and Skill Innovation Program to explore new modes of business competition and promote the shift of competition subject from elites to all staff, so as to motivate all employees to achieve better personal growth. In 2021, the Company declared and hosted 3 class-two national level competitions, 4 classone competitions and 6 class-two competitions at the group company level; and it completed evaluation of senior titles of 308 persons (at the professor level) and 961 senior technicians. In addition, the Company built a joint training model for talents in schools and enterprises, pushed forward the joint training programs with universities, which also actively promoted diversified training approached.

5.4.2 Career Development

In order to promote the cultivation of various talents, the Company revised and improved Sinopec Expert Management Measures and Sinopec Measures for the Selection and Management of Senior Skill Positions, and continued to push ahead the construction of talent growth channels and improved the vertical and horizontal development mechanism of talents. In terms of vertical promotion, we continued to raise the "ceiling" for the growth of talents, expanded the fields of expert positions, raised the expert level and set up more positions. In terms of horizontal development, we broke down the barriers of horizontal development across professional sequences, promoted the cross-transferring of positions among the three sequences, and formulated the policy for mutual recognition of professional skill levels and corresponding titles. In 2021, the Company selected and hired three Chief Scientists for the first time, in addition to ten Chief Experts, 71 Senior Experts and 49 top Skilled Professionals.

5.4.3 Performance Appraisal

An effective performance appraisal mechanism plays an important role in motivating employee growth and improving the overall efficiency of the Company. Sinopec Corp. implements annual performance appraisal for the

leadership team of various units (departments). At the beginning of each year, the Company organises these personnel to sign an annual performance appraisal responsibility commitment to specifies the performance indicators and targets; in the next March, their performance is evaluated mainly in such aspects as the performance indicators, professional indicators, key tasks and other binding indicators. In terms of medium- and long-term incentives, the Company conducts performance appraisal for management staff on an annual basis, drafting the commitment letter for management staff specifying the relevant performance appraisal responsibilities in accordance with their employment status and work division. Appraisal indicators, targets and weights are set in accordance with the overall performance at the Company and the business they oversee, and calculated in strict accordance with how they are completed to produce their final appraisal scores and results. The annual remuneration of management staff is tied to their performance appraisal results.

In 2021, the Company included key ESG indicators as binding indicators into the annual performance assessment for leadership team of business units and subsidiaries, including indicators on production safety, anti-corruption, energy conservation, environmental protection, response to climate change, quality management, and operational compliance, etc. Among them, production safety indicators include but are not limited to penalties for safety violations, contractor safety, etc.; energy conservation, environmental protection and response to climate change indicators include but are not limited to greenhouse gas emissions, pollutant discharges and emissions, energy efficiency management, penalties for environmental violations, etc. Management staff who have failed to meet the appraisal targets will have their comprehensive appraisal score deducted accordingly. In case of particularly significant safety, environmental and quality accidents or incidents, the comprehensive appraisal results will be directly reduced to "unqualified". In addition, the Company has linked the annual performance bonus of the leadership team to their appraisal result on response to climate change. For each point deducted, a certain percentage of his/her annual performance bonus will be reduced accordingly, up to 20% of the total amount.

5.5 Employee Care

The Company carried out a group-wide survey on its employee support and assistance efforts, focusing on 40 units which were the main recipients of assistance. The survey investigated the detailed information on the employees in difficulties and their difficulties, and the sources and use of assistance funds. The Company also completed the allocation of assistance funds to subsidiaries with employees in particular difficult conditions. In 2021, the Company provided assistance, totalling RMB 176.8591 million assistance (including inkind assistance), for 116,867 people through labour unions at various levels. Its subsidiary Yanshan Petrochemical revised its Implementation Measures for Yanshan Petrochemical Assistance Fund, which expanded the scope of assistance to cover 30 serious diseases and increased the upper limit of assistance to RMB 200,000, so as to providing "meaningful support for those in real difficulties".

6. Fulfilling Social Responsibility

6.1 Contributing to Social Philanthropy

Upholding the principle of common prosperity, the Company strives to promote social equity and establish a social contribution system to improve people's livelihood and well-being. Following years of development, the Company has established five significant areas of social commitment, with poverty reduction, social welfare, brand public welfare, serving the society, and environmental preservation at their core. The Company strives to improve people's lives, address their concerns, enhance their sense of happiness and benefit, and contribute to social development.

6.1.1 Supporting Rural Revitalization

In 2021, the Company issued the 14th Sinopec Five-Year Plan for Rural Revitalisation, formulated and implemented the Sinopec Implementation Plan for Education Support, and the Sinopec Implementation Plan for Rural Revitalisation through Product Consumption. Centring on the theme of "five revitalisations", the Company focused on three key fields of industry, education, and consumption. It accelerated the implementation of rural redevelopment by promoting poverty alleviation projects led or participated in by the Company at a high level. During the year, the Company dispatched 349 teams and 925 grassroots officers to villages to undertake the poverty alleviation tasks in eight counties and 610 villages. The Company invested and facilitated the distribution of RMB 581 million for poverty alleviation, trained 37,524 grassroots volunteers, and assisted in marketing RMB 949 million worth of products from targeted poverty areas, resulting in the six targeted counties' poverty alleviation indicators reaching new highs.

"One county, one chain" poverty alleviation through industrial development

In 2021, the Company gave full play to its advantages and put forward the "one county, one chain" poverty alleviation plan through industrial development to help poverty-stricken areas improve industrial quality, efficiency and market competitiveness, accelerate the upgrading of rural industries, build a high-quality agricultural industrial chain with a certain scale, and cultivate a number of brand products with market competitiveness.

Poverty alleviation through education support for bright future

The Company invested RMB 300 million to construct over 300 schools, significantly enhancing basic education in the designated poverty support areas. With the strategic transformation from poverty alleviation to rural revitalisation, Sinopec Corp. maintained its support in focus, capital, and employee volunteers, and continued to support the high-quality development of education, providing students with a more conducive learning environment and educational resources.

In contrast to traditional donations for infrastructure and faculty development, Sinopec's education support is distinguished by systematic promotion and comprehensive implementation of programmes. The Company works to improve local education on three levels: campus, teachers, and students. It focuses on the two dimensions of hardware and software and gives fully play to the resources supplied by renowned universities and central state-owned enterprises in China. The Company applied an education support mechanism of "Assistance, Promotion, and Advancement" in Dongxiang County, donated 37,000 books to targeted schools, and customised winter uniforms for 579 students. In Yuepuhu County, 60 students and 23 classes were paired up with donors and received RMB 200,000 worth of stationery, sporting goods, desks, and chairs. In Yingshang County, various education support activities were conducted, including one-on-one student assistance, book donation, and teacher-in-residence. In addition, the Company also organised 42 primary school students from Dongxiang County and Bange County to take the "Ice and Snow of the Winter Olympic" special flight to Beijing to participate in the Beijing Winter Olympic Camp named "Lighting Up Hopes".

Poverty alleviation through product marketing for stable income growth

The Company innovated the working mode and produced the "Pure Land" products under the "Baoyuansheng" brand and introduced specialty products from Naqu, Tibet to market. Since the "Baoyuansheng" Cordyceps Sinensis entered the market in the second half of 2021, its had already registered RMB 28 million in sales. Moreover, the Company also encouraged trade unions, logistics, and other departments to purchase poverty alleviation goods, totalling RMB 409 million in procurement. Supported by the sales of rural revitalisation products and Easyjoy's famous specialty products, the total sales of poverty alleviation products reached RMB 631 million in 2021.

6.1.2 Expanding Public Welfare Activities

Sinopec Corp. seeks to fulfil its social responsibility by focusing on the objective of "refuelling for a better life", leveraging its commercial and resource advantages, implementing diverse public welfare and charity projects, and giving back to society. Adhering to the spirit of "dedication, fraternity, mutual-assistance, and progress", the Company encourages employees to participate in voluntary activities. It continues to carry out public welfare projects such as "Sinopec Lifeline Express", "Warm Stations Programme", "Sanitation Workers' Stations Programme", "Driver's Home Programme for Truck Drivers", and "Spring Bud Project for Young Girls" to offer love and warmth to society. From individuals to groups, enterprises to communities, and special events to everyday behaviours, Sinopec's volunteerism has developed into a distinct "Sinopec Culture" that is carefully understood and actively embraced by all employees.

6.2 Sustainable Value Chain

Sinopec Corp. continues to promote supply chain management, adheres to the values of safe, timely, green, and cost-effective procurement, and incorporates sustainability concepts into a compliant, green, and responsible procurement system. The Company has built a risk identification and management method covering supply resources, purchase price, etc., and released a series of supplier social and environmental risk prevention rules.

6.2.1 Supplier Management

The Company is committed to promoting the awareness and ability of suppliers to improve product quality and protect the environment by integrating environmental protection requirements in the process of the supplier qualification inspection. The Company carries out an assessment and evaluation of suppliers regarding environmental protection, resource conservation, and sustainable development and urges suppliers to continuously improve product quality and practice the concept of green development. Based on the existing management measures for green procurement, the Company formulated and issued the Sinopec Green Material Procurement Catalogue (2021 Edition) to promote the quality and efficiency of green procurement comprehensively. As of the end of 2021, 25,072 suppliers have passed the qualification inspection, an increase of 3,626 from the previous year.

【Case】Strengthening mutually beneficial cooperation with suppliers through EPEC "EPEC" platform gives full play to the Company's role as the core enterprise of the supply chain, focuses on procurement standardisation, manufacturing digitisation, logistics transparency and information interconnection, and works with related parties to continuously deepen the "Sunshine Action" of the supply chain. As of the end of 2021, 69 companies had joined the "Sunshine Action". Focusing on the steady and mutually beneficial cooperation with suppliers, the Company invited more than 20 suppliers to participate in major new energy equipment seminars during the industrial products exhibition held by EPEC in 2021, guiding suppliers to pay attention to the demand and development trend of new energy such as hydrogen energy and geothermal energy, to focus on transformation and upgrading, carbon reduction and consumption reduction, and to accelerate the building of low-carbon competitiveness. In 2021, EPEC was rated as the first batch of national demonstration enterprises for supply chain innovation and application, with 3.33 million kinds of online goods and 268,000 registered users. In 2021, EPEC has achieved annual transaction amount of RMB 531.2 billion and helped 543 enterprises to obtain financial support of RMB 25.3 billion through factoring financing.

6.2.2 Contractor Management

In 2021, the Company continued to develop its comprehensive management of contractors, revising the management measures applicable to contractors thoroughly by formulating the Sinopec Contractors Management Regulations on Engineering Construction, Inspection, and Maintenance, and continued to promote the preparation of the Sinopec Contractors Assessment Measures for Engineering Construction, Inspection, and Maintenance, which further clarified the primary responsibilities of contractors and established a contractor self-management mechanism.

6.3 Community Communication and Engagement

Sinopec Corp. is committed to enhancing collaboration with stakeholders, establishingan effective mechanism for public communication and engagement, responding promptly to community concerns, identifying, assessing, and resolving risks of conflict between communities and the Company, and fully respecting the cultural customs and behaviour of the local community while minimising the impact on the local environment, ecology, and society.

6.3.1 Assessment of Impact on Community

The Company has formulated social impact assessment procedures covering the critical stages before a project is implemented, such as project scheme development, construction scheme formulation, environmental protection inspection, etc.

In addition, the Company has formulated a series of environmental protection management systems such as the Management Measures of Ecological Protection and Pollution Prevention and Control Management Measures. Adhering to the idea of taking into account the interests of local communities and residents, the Company takes targeted actions to reduce its influence on the ecological environment and to avoid and regulate noise pollution.

6.3.2 Community Communication Mechanism

The Company has established an environmental information disclosure system following national and local regulations to disclose environmental information and accept social supervision promptly. The principal means of information disclosure is by constructing pollutant discharge signboards outside the stations where pollution sources are released and explaining to the public the main processes, main types, and discharge volume of pollutants. Moreover, according to the requirements of local governments, all subsidiaries of the Company have established a complaint collection, handling, and feedback mechanism with the local community and the public, to timely report the major environmental complaints to the relevant departments of the headquarters and promote rectification through the joint working mechanism.

In 2021, the Company demonstrated innovative achievements in the domains of environmental protection, energy conservation, emission reduction, cost reduction, and efficiency enhancement through offline and online activities, including "online exhibiting" and "online live broadcasting". In addition, in combination with voluntary activities, the Company publicises knowledge about the oil and gas sector and safety on campus and in the community through voluntary activities, thereby increasing the content and format of the "Open Day" events. In 2021, the Company held 678 "Open Day" events, with 33 million participants. Since the first "Open Day" in 2014, all subsidiaries of the Company have carried out events in more than 100 cities in China and have invited 210,000 people, including community residents, students, media representatives, and government officials, to visit the plants, winning respect and recognition for Company.

Note: Zhejiang Taizhou Petroleum Branch Company organised open day event for the public

6.3.3 Community Participation Programme

The Company attaches importance to the joint development of itself and the local community, actively responds to local development strategies, and makes full use of its advantages to support local urban construction and economic and social development.

Deepening Cooperation with Local Community

Promoting Community Development

When conducting business overseas, the Company is committed to paying taxes in accordance with applicable laws and regulations, promoting local hiring, adhering to international standards of safety, health, and environmental protection, respecting indigenous cultures, actively participating in public welfare undertakings, and promoting the livelihood and environmentally sustainable development of local communities.

6.4 Product and Service Management

Sinopec Corp. is committed to continuously improving the quality of its products and services based on the tenets of "high quality, sufficient quantity, and customer satisfaction".

6.4.1 Quality Management

The Company strictly abides by the Product Measurement Law of the People's Republic of China, the Measurement Law of the People's Republic of China, the Standardisation Law of the People's Republic of China, and other laws and regulations. The Company has formulated internal regulations, such as the Measures for Quality Management of Refined Oil Products and Natural Gas and the Risk Management Regulations on the Quality of Refined Oil Products and Natural Gas, constantly promoting its product quality management mechanisms. Fifteen marketing subsidiaries of the Company have obtained third-party certification for their ISO9000 quality management systems. The remaining 22 subsidiaries have passed the Company's certification process.

The Company takes targeted measures to construct its indicator system, supplier management system, quality inspection, and control system to ensure product quality comprehensively. In 2021, more than 33,000 batches of samples of the Company accepted random external review at the national, provincial, and municipal levels and were all qualified. In 2021, there were no known incidents involving product recalls. Moreover, the Company is committed to adhering to new regulations and policies, consistently improving the quality of oil products, and promoting pollution reduction.

【Case】Sinopec actively improves oil quality in support of pollution control In July 2021, the Municipality Government of Beijing launched the "Beijing VIB" standards, which further standardized the allowed range of olefins, aromatics and distillation of gasoline, as well as the allowed range of polycyclic aromatic hydrocarbons and distillation of diesel, and added allowed values of some harmful substances (silicon and chlorine of gasoline), requiring all-round supply of the "Beijing VIB" oil before February 1, 2022. On December 7, 2021, 55 days prior to the deadline, Sinopec completed the replacement of "Beijing VIB" oil products required by the Beijing Municipal Government at 517 service stations and 5 oil depots in Beijing to fully supply "Beijing VIB" gasoline and diesel. The usage of "Beijing VIB" oil can reduce the emission of particulate matter of gasoline vehicles by 20% to 30%, the emission of hydrocarbons by 10% to 15%, and the emission of carbon monoxide by 6% to 10%. For diesel vehicles, the emissions of particulate matter can be reduced by 20%, and the emission of nitrogen oxides by 10%. Such achievement will play an important role in improving air quality and realising the coordinated emission reduction of fine particulate matter (PM2.5) and ozone.

6.4.2 Rights and Interests of Customer

The Company strictly abides by the Law of the People's Republic of China on the Protection of Consumers' Rights and Interests and the Anti-Unfair Competition Law and values the opinions and suggestions of customers and consumers. The Company has established a sound closed loop of "handling, settlement and return visit" to solve customer complaints to ensure that t customers complaints are followed and solved timely. The Company is committed to correctly resolving the issues and fully protecting consumers' rights and interests.

The Company places a focus on consumer privacy protection. The Board of Directors, as the primary regulator of customer privacy protection, strictly adheres to the requirements of applicable laws and regulations, such as the Personal Information Protection Law of the People's Republic of China, the Data Security Law of the People's Republic of China, and the Regulations on Classified Protection of Network Security. The Board also revised and issued the Sinopec Network security Notification Management Measures, requiring the Company to ensure the complete life-cycle security protection of essential data, adhere to the principles of lawfulness, fairness, and necessity, and collect and use personal information in strict accordance with relevant national laws and regulations.

The company adheres to the principles and regulations of lawfulness and integrity, clarity and rationality, accessing information only when necessary, openness and transparency, accuracy and integrity, and security guarantee, and complies with the legal and regulatory requirements for network security, data security, and personal information protection, ensuring the security of personal information related to the Company's online business. The Company has built an integrated security protection system, including identity management, password-related services, data-leakage prevention, document security management, and email data security to ensure data security protection. By the principle of accessing information only when necessary, the Company carries out personal information protection and provides technical protection measures such as desensitisation, monitoring, and audit.

6.4.3 Service Improvement

Adhering to the concept of "customer-centred", the Company carries out customer service in an all-around way, focuses on improving high-quality service, and implements targeted policies around multiple optimisation schemes to enhance the quality of service and customer experience comprehensively.

In 2021, the Company's customer and consumer satisfaction rate continued to increase, while the rate of bad comments and complaints continued to decline.

6.4.4 Service Innovations

The Company actively innovates its business model, diversifies its offerings, and promotes business form integration by focusing on consumer demands. The Company also seeks to accelerate the transformation and development of informatisation, integrate platform construction into its informatisation project, and develop an interconnected and efficient customer service platform, thereby providing practical support for the development of a new service model and business format with customers as the centre and the Internet as the carrier.

Key Performance

Environmental Performance

GHGs emissions and management

Note 1: The Company conducts GHGs emission (direct and indirect) accounting and verification according to ISO14064-1:2006 standards, covering six gases including carbon dioxide (CO₂), methane (CH₄), nitrous oxide (N₂O), hydro fluoro carbons (HFCs), per fluorinated compounds (PFCs) and sulphur hexafluoride (SF₆).

Note 2: GHGs emissions intensity(tonnes CO₂-equivalent/RMB million)= Greenhouse gas emissions / revenue (RMB million)

Energy and resources ^{Note 1}

Note 1: The consumption of certain energies increased in 2021 due to the change in scope of statistics as the result of asset acquisition of the Company, the increase of the scale of production and operation of the Company, and the release of new production capacities.

Note 2: Fresh water withdrawal for industrial use intensity(cubic metre/RMB million)= Fresh water withdrawal for industrial use/ revenue (RMB million)

Emissions, effluents, and wastes

Note 1: The total amount of general industrial solid waste entrusted by the Company to a third party for disposal.

Note 2: Solid waste intensity(tonne/RMB million)=amount of solid waste/revenue(RMB million)

Note 3: The total amount of hazardous waste entrusted by the company to third-party qualified institutions for disposal.

Note 4: Hazardous waste intensity(tonne/RMB million)=amount of hazardous waste/revenue(RMB million)

Social Performance

Employment and Training

Workplace Health and Safety

Supply chain

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GHGs emission (million tonnes CO2-equivalent)

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Direct GHGs emission (million tonnes CO2-equivalent)

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Indirect GHGs emission (million tonnes CO2-equivalent)

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CO2 capture (thousand tonnes)

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Consumption of crude oil (million tonnes)

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Consumption of natural gas (billion cubic metres)

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Consumption of purchased electricity (billion kWh)

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Consumption of coal (million tonnes)

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Weight of disposed hazardous waste (thousand tonnes)

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Number of accidents reported

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Number of deaths due to production safety accidents

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Total recorded accident (incident) rate (per 200,000 working-hours)

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Fatal accident rate (per 200,000 working-hours)

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Total number of employees

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Employee turnover rate (%)

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Percentage of female employees (%)

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Number of patients cured under the Lifeline Express Programme

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Assessing the risk of material misstatement of selected 2021 key data relating to the sustainability report, whether due to fraud or error;

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Conducting interviews with relevant staff at the Company who are responsible for providing the information in the sustainability report;

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Performing analytical review procedures on the selected 2021 key data relating to the sustainability report;

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Checking relevant documents of selected key data relating to the sustainability report on a sample basis;

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Recalculating 2021 selected key data relating to the sustainability report;

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Reading the information presented in the sustainability report to determine whether it is in line with our overall knowledge of, and experience with, the sustainability performance of the Company; and

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Perform other procedures deemed necessary.

GHGs emission (million tonnes CO2-equivalent): GHGs emission disclosed herein refers to the sum of direct GHGs emission and indirect GHGs emission produced by the production operation subsidiaries of China Petroleum & Chemical Corporation. Direct GHGs emission (million tonnes CO2-equivalent): Direct GHGs emission disclosed herein refers to direct GHGs emission from fixed emission source, mobile emission source, process emission source and escape emission source produced by the production operation subsidiaries of China Petroleum & Chemical Corporation. Indirect GHGs emission (million tonnes CO2-equivalent): Indirect GHGs emission herein refers to indirect greenhouse gas emissions resulting from the consumption of purchased electricity, purchased heat (steam), etc by the production operation subsidiaries of China Petroleum & Chemical Corporation. CO2 capture (thousand tonnes): CO2 capture herein refers to the total amount of carbon dioxide captured by refinery enterprises of China Petroleum & Chemical Corporation in carbon dioxide recovery work. Consumption of crude oil (million tonnes): Consumption of crude oil herein refers to total end-use crude oil consumed by industrial subsidiaries of China Petroleum & Chemical Corporation. Consumption of natural gas (billion cubic metres): Consumption of natural gas herein refers to total end-use natural gas consumed by industrial subsidiaries of China Petroleum & Chemical Corporation. Consumption of purchased electricity (billion kWh): Consumption of purchased electricity herein refers to the difference between total consumption of electricity of industrial subsidiaries of China Petroleum & Chemical Corporation and their self-generated electricity. Consumption of coal (million tonnes): Consumption of coal herein refers to total coal consumed by industrial subsidiaries of China Petroleum & Chemical Corporation. Weight of disposed hazardous waste (thousand tonnes): Weight of disposed hazardous waste herein refers to the total weight of hazardous waste entrusted for process and disposal, which is collected in the Environmental Protection Information System of China Petrochemical Corporation.

Number of accidents reported: Number of accidents reported herein refers to the number of General Grade A and higher accidents that occurred of China Petroleum & Chemical Corporation. A General Grade A accident means an accident in which some person died. Number of deaths due to production safety accidents: Number of deaths due to production safety accidents herein refers to the number of permanent employees that are eventually confirmed dead in General Grade A accidents of China Petroleum & Chemical Corporation. Total recorded accident (incident) rate (per 200,000 working-hours): Total recorded accident (incident) rate (per 200,000 working-hours) herein refers to the number of accidents (incident) that occurred of China Petroleum & Chemical Corporation, per 200,000 working hours. Fatal accident rate (per 200,000 working-hours): Fatal accident rate (per 200,000 working-hours) herein refers to the number of employees that died in General Grade A accidents of China Petroleum & Chemical Corporation, per 200,000 working hours. Total number of employees: Total number of employees herein refers to the total number of employees who has signed full-time employment contracts with China Petroleum & Chemical Corporation, excluding dispatched employees. Employee turnover rate (%): Employee turnover rate herein refers to the proportion of the number of employees whose labor contracts were terminated by China Petroleum & Chemical Corporation for personal reasons (excluding ordinary employees such as gas station operators). Percentage of female employees (%): Percentage of female employees herein refers to the proportion of the number of female employees who has signed fulltime employment contracts with China Petroleum & Chemical Corporation, excluding dispatched employees, to total number of the employees. Number of patients cured under the Lifeline Express Programme: Number of patients cured under the Lifeline Express Programme herein refers to the number of patients who have undergone rehabilitation surgery in the Lifeline Express Programme, which was launched by China Healthy Express Foundation in reporting year and supported by China Petroleum & Chemical Corporation.

Report Content Indexes

HKEX ESG Reporting Guide Content Index

Note 1: The indicator is not applicable since the main products sold by the Company are energy and chemical products.

Note 2: The indicator is not applicable, because the Company has calculated and disclosed the total recorded accident (incident) rate per 200,000 working-hours and the fatal accident rate per 200,000 working-hours in accordance with the OSHA standards instead.

UNGC Ten Principles Index

TCFD Index

UNGC Advanced Level Criteria Index

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