China Petroleum and Chemical Corporation Limited (Sinopec)

Sinopec launched a three-year ‘Clear Water and Blue Sky’ Environmental Protection Campaign in 2013 and a Green Enterprise Campaign in 2018, wherein which it targeted emissions reduction. The company reported its intention to reduce scope 1 and 2 emissions by 12.6 million tonnes of CO2 equivalent between 2017 and 2023. However, it did not disclose information on the baseline for these targets or the emissions covered by these targets.

Sinopec also reports no information on its emissions reduction commitments beyond 2023. The company needs to be more transparent on its emissions reduction targets in the short term and long term to allow external stakeholders to assess its commitment to the low-carbon transition.

Sinopec needs to achieve a near 4% decrease in emissions intensity every year to align with its 1.5°C pathway by 2024 and meet the Paris Agreement commitments. The estimated scope 1, 2 and 3 emissions intensity of the China Petroleum & Chemical Corporation’s sold products has remained essentially flat between 2014 and 2019. Combined sales volumes of midstream oil products and gas products increased by around 10% from 2014 to 2019. Sinopec is yet to make significant changes to its sold product portfolio to achieve this reduction in emissions intensity and ready itself for the low-carbon transition.

Sinopec has started exploring profitable low-carbon business activities. In 2019, the company produced 6.92 million kilowatt hours (kWHs) of solar energy and over 3 million tonnes of hydrogen, sold 352,000 tonnes of bioenergy, and built 12 battery charging and changing stations providing over 6.2 million kWHs of power for new energy vehicles.

Sinopec launched a Green Enterprise Campaign in 2018, which contained emissions reduction targets from 2017 to 2023. However, there is no evidence that the company has set emissions reduction commitments beyond 2023.

Sinopec reported targets to reduce its scope 1 and 2 emissions by 12.6 million tonnes of CO2 equivalent between 2017 and 2023. However, the company does not provide details regarding the baseline of these targets and the emissions they cover.

Sinopec has started exploring profitable activities in solar energy, hydrogen production, bioenergy, and battery charging and changing stations, but the company is still at an early stage with regard to these activities.

Estimates of scope 1 and 2 emissions from Sinopec’s oil and gas product outputs indicate that the company has seen only a limited reduction in its emissions intensity between 2014 and 2019. The company needs to take more actions to meet the Paris Agreement commitments and align with its 1.5°C pathway by 2024.

Sinopec needs to achieve a near 4% decrease in emissions intensity every year to meet its 1.5°C pathway by 2024. The company will need to make significant changes to its sold product portfolio to ready itself for the low-carbon transition.