In 2024, the global economy was recovering slowly, the petrochemical industry was facing the dual challenges of weak market demand and oversupply, the petroleum was more prominent as a feedstock under the new energy system, and the low carbon and intelligence became important development trends in the petrochemical industry. The global petrochemical industry giants actively adjusted their strategic directions to adapt to the changes in the global energy market and cope with the challenges of climate change. In the face of new opportunities and challenges, the Company earnestly studied and implemented the spirit of the Third Plenary Session of the 20th CPC Central Committee and the spirit of the Central Economic Working Conference, set out on a new course and earnestly fulfilled its environmental, social and corporate governance responsibilities in accordance with the development idea of “shifting the focus from oil refining to chemicals, chemicals to materials, materials to high-end ones, and petrochemical park to eco-friendly park”, and achieved staged victories in the battles of work safety, turning losses into profits and high-quality development, thus weaving a picture of a thriving year.
We deeply practiced ESG concepts and promoted sustainable development. The Company has always regarded the practice of ESG as a proactive choice and the ESG risk management as part of its development strategy. With value-driven leadership, market orientation, innovation-driven growth, talent-driven enterprise, green and low-carbon practices, and integrated development as the guiding principles, the Company has carried out in-depth ESG risk identification, analysis and assessment, continuously optimized management and risk control, and transformed high-quality management innovations into concrete practices to promote the Company’s high-quality development. In 2024, the Company’s ESG practice was awarded Class BBB in the rating of MSCI, an authoritative international ESG rating agency, and Class A in the rating of Wind, a well-known domestic rating agency, and ranked the top among domestic companies in the same industry evaluated. The Company’s in-depth practice in the field of ESG was selected as one of the best practice cases of sustainable development of listed companies in China in 2024.
We insisted on taking safety as the premise and foundation of all work. The Company enhanced the level of intrinsic safety throughout the whole process of production and operation, further implemented the safety management concepts and requirements of “rules for every matter, accountability in all areas, oversight at all times, safety ensured by everyone” on the basis of “being strict to the end”, strictly implemented the “three managements and three musts” and the localized grid management responsibility, issued and tried out the “HSE penalty order, HSE deadline rectification order”, carried out the work safety improvement year campaign and the “100-day safety without accidents” campaign in a deep-going way, deepened source governance, system governance and comprehensive governance, and fully pushed forward risk control and hazard investigation and rectification. As a result, the production abnormalities reduced by 25% year-on-year, and the total flare gas emissions hit a record low, realizing the goal of “zero injury, zero pollution and zero accident”.
We strived to make green the bright background color for high-quality development. The Company has earnestly laid out and practiced the strategy of green and low-carbon transformation, actively responded to global challenges such as energy security, environmental pollution and climate change, resolutely shut down and eliminated outdated production facilities that was highly polluting and energy-consuming, and continued to push forward the energy saving through management, projects and technologies, with emphasis on the control of intermediate utilization of energy. The clean and efficiency improvement project of the thermal power unit is being implemented, and the total annual carbon emissions will be significantly reduced after it is put into operation. The Company strengthened the whole process control and deep treatment of sewage and waste gas, and fully pushed forward the construction of ecological and environmental protection projects. The Company focused on the combination of “increasing income and reducing expenditure”, vigorously developed the circular economy, and the standard make-up rate of circulating water fell to a record low. In 2024, the Company’s VOCs alarms decreased by 50% year-on-year, and the concentration of VOCs at the plant boundary decreased by 9.90% year- on- year, which was at a new record low, and it was awarded the titles of “Advanced Unit of Environmental Protection” and Class A “Zero Waste Plant” by SINOPEC. From 2010 to now, the Company continued to maintain the honorary title of “China’s Environmentally Friendly Enterprise”.
We actively cultivated and developed new quality productivity. The Company accelerated the construction of high-quality development projects and the layout of industrial chain, speeded up the construction of digital intelligence, built intelligent plant, and accelerated the development of carbon fiber and its composite material industry, striving for the first place in developing the new quality productivity. The Company comprehensively carried out the construction of “one cloud, one lake and one plant”, the production patrol inspection entered the digital era, and Class AAA digital production and operation control capability passed the certification and evaluation of "integration of two digitizations" management system. The Company has been focusing on efficiency creation in the two major segments of refining and chemical, optimizing the production and operation of facilities, crude oil procurement strategy, refined product structure and chemical industry chain structure, enlarging the total amount of gasoline and jet fuel, and exploring the market development of other high-value-added oils. We have strengthened the core industry of medium- and high-end new materials such as carbon fiber, and strengthened the medium- and high-end new material industry chain with polyolefin, elastomer and C5 downstream fine chemical new materials as breakthroughs and extensions. Technological innovation has brought ab out a steady improvement in product competitiveness, the Company’s medical polypropylene special materials were identified as Shanghai high-tech achievement transformation project (Class B), and the Company’s carbon fiber products were successfully applied to the world’s longest onshore wind turbine blade of 131m, the thematic commemorative medals of the 2024 World Design Capital Conference and other application scenarios.
We kept in mind and actively fulfilled our social responsibilities. The Company attached importance to staff development, taking human resource construction as a key task to support business development, actively innovating talent training mode, and creating new employees rainbow training camp, employee innovation studio and other growth platforms. Focusing on serving the staff and masses, the Company has set up and completed ten projects of “I do practical things for the masses”. The Company has been carrying out research on employee mindset index for 25 consecutive years, and the overall mindset of employees is stable and improving, with the total mindset index hitting a record high in 2024. It is our mission to develop with the community, and the “Starry Sky” volunteer team continued to organize and participate in volunteer activities. In 2024, the Company held a total of 44 “Public Open Day” activities. The Company launched the “Transformation and Upgrading” strategic cooperation with the Shanghai Jinshan District Government, answering the same questions and drawing a new blueprint for the green and low-carbon transformation & development of the petrochemical industry. The Company steadily and deeply promoted the helping and supporting activities, actively carried out educational and consumption support activities, subscribed for agricultural products actively, and invited representatives of teachers and students from Bange County, Naqu, Tibet to Shanghai for study and training, helping to revitalize the countryside with practical actions.
2025 is the last year of the “14th Five-Year Plan” and the year of planning and layout of the “15th Five-Year Plan”. The Company will rise to the challenge, anchor the vision of building a “Centennial Jinshan” and the goal of building a “New Jinshan” and restationing at the head, and grasp the work safety with the sense of responsibility of “never slacking off”, and give full play to the competitive advantages of the integrated refining and chemical industry chain, adhere to the consideration of low cost and differentiation, and pay equal attention to scale and refinement, adhere to the transformation and upgrading of traditional industries and accelerate the development of strategic emerging industries, comprehensively promote the transformation of digit al intelligence, comprehensively carry out technological transformation and quality upgrading, and further optimize the structure of the refining and chemical products, so as to make new achievements in the journey of holding steady the energy rice bowl, and write a new chapter of the Chinese style of modernization of the petrochemical industry.