China National Petroleum Corporation (CNPC) is a publicly listed integrated oil and gas company headquartered in China, with majority state ownership. In 2019, it had USD 396.65 billion in revenue and a reported 1,344,410 employees in 2020*. CNPC is the world’s 3rd largest oil company with assets and interests in over 30 countries. CNPC has started developing renewable energy but lacks a clear low-carbon transition plan.
Despite having a Green Development Action Plan, CNPC has not made any public commitments to reduce emissions. The company should develop ambitious targets for reducing its scope 1 and 2 and scope 1, 2 and 3 emissions intensities to drive business strategy and demonstrate the company’s alignment with its 1.5°C pathway.
Although the company’s annual report mentions its aim to increase its low-carbon product sales, no evidence was found to demonstrate such an increase. There is also no evidence that the company is decarbonising its product offering by providing energy efficiency services to its customers.
CNPC has started to use renewable energy, such as geothermal and solar energy, at a few of its oil and gas fields. The company has also initiated research in carbon mitigation technologies and in carbon sequestration. CNPC can add credibility to its low-carbon transition plan through further disclosure on its plans for developing low-carbon business activities and growing its low-carbon technologies and research.
CNPC receives a trend score of -. If the company were reassessed in the near future, its score would likely decrease. The company has started research into developing renewable energy, but this is still at an early stage. The company aims for a higher proportion of natural gas and renewables in its domestic energy output by 2030, and to increase this even further by 2050. However, it fails to provide clarity on the business model and strategy that will help achieve this ambition.
With no robust low-carbon transition plan, and no specific targets for reducing its scope 1, 2 and 3 emissions intensity, CNPC is not on track to achieve the low-carbon transition aligned with its 1.5°C pathway.
Although CNPC has made a commitment to reduce emissions, the company has not set specific targets for reductions in its scope 1 and 2 or its scope 1, 2 and 3 emissions. CNPC is financing low-carbon innovation in its supply chain technology under the Oil and Gas Climate Initiative’s (OGCI’s) USD 1bn+ climate investment fund.
CNPC has strategic goals to achieve a higher proportion of renewable energy in its domestic primary energy output by 2030, and to increase this further by 2050. However, the company does not indicate the specific proportion that it targets to achieve. The company has indicated plans to reach 10% capital expenditure (CapEx) in research and development (R&D) by 2030 to reduce missions. However, the company provides only limited financial information about its low-carbon transition plan.
Between 2014 and 2019, CNPC has been slightly increasing the proportion of gas in its energy mix. However, the beneficial impact of increasing gas on the company’s scope 1 , 2 and 3 emissions intensity is reversed by its growing scope 1 and 2 emissions intensity owing to extraction in more emissions intense regions and an increase in the use of emissions intensive refining technologies. CNPC has also increased the proportion of oil that it refines using technologies with higher emissions intensity.