China National Offshore Oil

CNOOC has not set any targets at the group level. A major subsidiary, CNOOC Limited has set two emission reduction targets but does not define the scope, base year, or targeted reduction. CNOOC should set a long-term decarbonisation target covering all scopes at the group level. It should also set sufficient mid and long-term targets to incentivise action on long-term aims. It should also disclose if, or how, carbon offsetting will be used to achieve these goals.

CNOOC does not disclose the amount it invests into research and development (R&D), either the total amount or specifically into low-carbon technologies. Investing into low-carbon technologies is important to bring these low-carbon technologies to scale. This could allow CNOOC to develop profitable low-carbon activities and to begin to pivot away from oil and gas. Furthermore, CNOOC is currently set to exceed its scope 3 emissions budget by 30% due to locked-in emissions from current and planned extraction activities.

CNOOC does not acknowledge climate change as an issue and there is no evidence that the company has a low-carbon transition plan. The company should establish a time-bound action plan that outlines how it will transition to a low-carbon economy. This should include medium and long-term targets, verifiable and quantifiable key performance indicators and financial commitments. The plan should be informed by scenario analysis to ensure that the plan’s ambition is sufficient for a 1.5°C pathway.

CNOOC has not set group-level emissions reduction targets. A major subsidiary, CNOOC Limited does aim to align with China’s efforts to peak carbon dioxide (CO2) emissions before 2030 and achieve carbon neutrality before 2060. The company has not explicitly acknowledged the climate crisis as an issue, and has not committed to phasing out fossil fuels.

CNOOC does not have a transition plan. The company is planning to expand its wind energy capacity through the building of a second offshore wind project. However, this remains negligible compared to oil and gas production with 20 new projects in the reporting year alone. A subsidiary, CNOOC Limited, has set a short-term goal of cumulative emission reduction of more than 1.5 million tons of carbon dioxide equivalent by 2025. The company does not disclose its emissions data or investment data.

The company has some wind energy activity and is expanding this, but is still actively exploring for oil and gas. In 2021 it produced its record high oil and gas production at over 500 million barrels of oil equivalent. The company views gas as a key element of the transition. Furthermore, it currently does not have strategies for supplier, client, or trade association engagement on the climate crisis. In 2022, it was named as the company responsible for the fourth highest amount of oil and gas exploration by cumulative CO2 emissions.

The company’s scope 1, 2, and 3 emissions intensities have remained the same between 2017 and 2021. This does not align with the annual 4% decrease its 1.5˚C aligned pathway calls for. The company’s scope 3 product-related emissions have been rising since 2017 due to a 40% and 30% increase in the production of oil and gas respectively between 2017and 2022.

CNOOC has not set a transition plan and has not set emissions reduction targets despite claiming to support the Paris Agreement. The company is still expanding its oil and gas production. It has some wind power activities, but this is negligible compared to its oil and gas revenues. The company has not shown signs of transitioning for a low-carbon future.

The company publicly discloses a commitment to engaging in social dialogue with workers and unions. However, no relevant disclosure was found regarding the categories of stakeholders it engages with on a just transition. Nor was there any evidence to show the company’s ongoing social dialogue and meaningful engagement with affected stakeholders. No evidence was found of the company undertaking low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in its just transition planning.

No public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s action to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks. No public commitment by the company was found stating its intention to re-skill and up-skill workers displaced by the transition to a low-carbon economy. Additionally, no evidence was found that the company re-skills and up-skills workers in a way that ensures gender balance and inclusion of vulnerable groups.

No relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders. No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

The company has a grievance mechanism available to workers and external stakeholders to report human rights issues. However, no other policies or commitments of the company related to respect for human rights were found in the public domain. This includes the necessary policies and systems by which the company can ensure respect for basic human rights in its operations and supply chain.

The company commits to respecting the health and safety of its workers and discloses some statistics about the diversity of its workforce. The company can however strengthen its disclosure on these subjects as well as on its living wage and working hours practices.

The company has a publicly available policy statement prohibiting bribery and corruption and offers a grievance mechanism where issues on this topic can be reported. However, no other policies or commitments were found in the public domain related to personal data protection, tax, bribery and corruption, and lobbying and political engagement. This includes ensuring ethical business conduct throughout its operations and in its relationships with business partners.