China National Petroleum

CNPC states that it is planning to become “carbon-neutral” by around 2050 in support of China’s efforts to achieve carbon neutrality before 2060. However, the company does not specify this aim as a target. It alsodoes not clarify the scopes of emissions reduction and has not set any intermediate targets. Setting regularly spaced intermediate targets will incentivise near-term actions on longer-term goals.

In 2021, CNPC added 240,000 kilowatts to their installed capacity of wind and solar power generation projects. But it does not disclose its share of revenues from low-carbon products and expected revenues over the next 5 years. CNPC’s scope 1 and 2 emissions intensity has remained at the same level between 2017 and 2021 and does not align with its 1.5°C pathway.

CNPC states that it manages potential environment and social risks in the supply chain but does not provide further details in implementation. The company needs to be consistent in translating its implemented supplier engagement strategy into concrete actions in order to drive significant GHG emissions reduction.

CNPC has stated its ambition of becoming “carbon neutral” by 2050 in in support of China’s carbon neutrality before 2060.. However, this aim cannot be assessed as a target. The company does not clarify the scopes of emissions and has not set any interim targets to support the ambition

CNPC started the development of geothermal, wind, solar and hydrogen energy as part of their main business. However, the company includes gas in its described, “clean energy” production and expects that it will account for about 55% of overall oil and gas production by 2025. Between 2026 and 2035, CNPC plans to expand its geothermal and clean power business and promote the industrial development of hydrogen energy and carbon dioxide capture, utilization and storage (CCUS).

CNPC’s scope 1 and 2 emissions intensity has been at the same level since 2017 and does not align with the 1.5°C pathway. Its scope 1, 2 and 3 emissions intensity has decreased very insignificantly between 2017 and 2021. The company is projected to exceed its scope 3 carbon budget by almost 150% between 2022 and 2050.

In 2021, CNPC put into operation 39 new energy projects, including wind and solar power generation. It also stepped up research on CCUS industrial layout, and kicked off 18 CCUS evaluation and test projects, with 570,000 tons of CO2 injected.

CNPC has stated an ambition to become “carbon-neutral” by around 2050, but it has not set a target for all scopes of emission, or set interim targets and does not have a clear transition plan. The company shows interest in new energy projects but still heavily relies on oil and gas, and plans to expand their extraction and production. The company’s lack of targets, strategy and emissions intensity data all suggest that the company is not yet committed to the low-carbon transition.

No evidence was found of the company’s commitment to social dialogue or of the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate 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.

The company discloses the actions it takes to create jobs including local community development programs. However, 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. The company discloses the actions it takes to provide skill development opportunities for workers and affected stakeholders. For instance, it offers vocational training programs and staff development. However, no relevant disclosure was found of the company embedding equality of opportunity for women and vulnerable groups in these actions. Furthermore, no evidence was found of the company having a process for identifying skills gaps for workers and affected stakeholders or a public commitment to help workers displaced by the transition to re- or up-skill.

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.

No 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 expects the same commitment of its business relationships. Additionally, the company discloses the gender of its workforce. However, the company can strengthen its disclosure on these subjects, as well as on its living wage and working hours practices.

The company discloses its global tax strategy, and has a poliyc prohibiting bribery and corruption. However, the company can strengthen its disclosure on these and other key ethical business topics including responsible lobbying and political engagement.