Shaanxi Yanchang Petroleum

Yanchang Petroleum has not set any emissions reduction targets and does not disclose plans to develop any. The lack of publicly disclosed targets suggests that Yanchang Petroleum’s management is not focused on reducing its scope 1 and 2 or its scope 3 emissions, and is lacking internal planning towards a low-carbon transition. The company should develop a long-term target that aligns with its 1.5°C pathway and covers its scope 1, 2, and 3 emissions. Additionally, the company should set intermediate targets at gaps of no more than five years to incentivise near-term action on longer-term goals.

There is no evidence that Yanchang Petroleum 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, as well as 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.

Yanchang Petroleum is exposed to risks across every assessment area. It is not engaging with the low-carbon transition and therefore will not be prepared for changes to the sector. The company’s revenue is wholly reliant on fossil-fuel activities. The company has not disclosed any information on potentially viable low-carbon business models.

Yanchang Petroleum does not have any targets or a transition plan. The Group outlines that greenhouse gases are the main cause of climate change, and has suggested it is improving its facilities to reduce its greenhouse gas emissions and has adopted emissions reduction policies. However, no further information regarding these claims has been found. The company’s lack of targets and emissions disclosure, suggest the company is not focused on reducing the emissions impact of its business.

Yanchang Petroleum does not appear to have a climate transition plan. The company details some emission reduction practices, including internal energy efficiency practices. However, no specific climate targets could be found. With no transition plan, Yanchang Petroleum has not laid out any long-term actions or an overarching vision for a transition to a low-carbon future.

Although Yanchang Petroleum has committed to developing a carbon capture, use and storage (CCUS) project with a 1-million-tonne commercial capacity by 2020, there is no information available on the company’s capital expenditure (CapEx) for this project or for other low-carbon technologies. There is no evidence the company is investing in research and development (R&D) to support a low-carbon transition.

Yanchang Petroleum has invested in a coal-to-ethanol project. However, this project is not classified as low-carbon aligned within the ACT framework. There is no evidence to suggest the company has invested in any low-carbon technologies in recent years. The company’s sales of fossil fuels have increased over the last five years, increasing the company’s divergence from its 1.5°C pathway.

No details have been found on Yanchang Petroleum’s targets and low-carbon transition plan. There is no evidence to indicate the company is offering energy efficiency services as a sold product for clients. The company does have a green procurement initiative for its suppliers. However, the scope and success of this strategy has not been disclosed. The company does not appear to have a client engagement strategy focused on reducing its scope 3 greenhouse gas emissions.

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.

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 training courses to help improve employees’ skills and allow them the opportunity to explore different workstreams and opportunities for workers and affected stakeholders. 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.

No evidence of the company s policies or commitments related to key decent work issues was found in the public domain. These issues include the provision of secure, safe and healthy workplaces, where workers are fairly renumerated and have a meaningful say in decision-making.

No policies or commitments of the company related to key ethical business topics – personal data protection, tax, bribery, and lobbying and political engagement – were found in the public domain. This includes ensuring ethical business conduct throughout its operations and in its relationships with business partners. However, the company does have a policy against bribery and corruption.