June 29, 2021, Shanghai, China - Sinochem International (600500.SH) today released 2020 Sustainability Report. It is the 17th sustainability report issued in succession since 2005.
The report highlights the company’s achievements in addressing climate change, carbon emission management, new business presence, technological innovation, precision poverty alleviation, as well as contribution to containing the Covid-19 pandemic. It also demonstrates the remarkable results in improving the long-term sustainability mechanism and shaping competitive edges in environment, social and governance (ESG) issues.
Liu Hongsheng, General Manager of Sinochem International, said: “The company is committed to building a world-class materials platform as we deliver on the strategy to be a technology-driven innovative fine chemical enterprise. We need to leverage our grand vision on sustainability to help us achieve higher targets, and our company has to grow in a high-quality manner in the new era.”
Advancing energy saving, emission reduction and green chemistry
Sinochem International always gives priority to climate change and carbon emission reduction. The company has been advancing clean technology and energy-saving facilities, exploring new ways to reduce carbon emissions, and contributing to national sustainability strategies.
The report shows that Sinochem International invested 424 million yuan in environmental protection projects in 2020 to foster energy-saving and emission reduction. The company’s total carbon dioxide emissions dropped by 220,000 tons from 2019, and carbon dioxide emissions per ton of product declined from 1.72 tons in 2019 to 1.49 tons in 2020.
Sinochem International will further incorporate the “carbon neutrality” target into its long-term strategy, increase investment in research and development, and improve overall efficiency via process improvement and supply chain management, so as to forge ahead with decarbonization.
Responding to major policies and initiatives
As Covid-19 rampaged in 2020, the company donated 130 tons of sodium hypochlorite, a disinfectant agent, and supplied more than 10,000 tons of them to the hard-hit areas. It also donated 1.38 million yuan in cash and 510,000 yuan in supplies to support the country’s efforts to contain the pandemic.
In 2020, Sinochem International allocated 7.19 million yuan as special funds for poverty alleviation, and helped 832 national poverty-stricken counties sell 26,000 kilograms of their specialty agricultural products.
In addition, the report identified Sinochem International’s action framework, practice, and key performance in line with the UN Sustainable Development Goals.
Improving long-term mechanism for ESG
In 2020, Sinochem International continued to improve its long-term mechanism for sustainability and stepped up efforts to build a quantitative evaluation system. The company set up a “sustainability committee” at the board of directors level, and released six sets of sustainability policies to improve information disclosure, ESG management, indicator management, and brand value.
Sinochem International has been widely recognized for excellence in ESG. In 2020, Sinochem International was shortlisted in the Top 50 ESG Ratings of Listed Companies in China’s Petrochemical Industry, ranked 4th with an A rating. It won the Responsible Enterprise of the Year award presented by the Southern Weekend, and the ESG Gold Responsibility Award by Sina Finance. The company was also awarded a bronze medal for corporate social responsibility from EcoVadis, with its score rising by 21% from 2019.
TÜV Rheinland, a worldwide testing and certification institute, verified Sinochem International’s sustainability performance in terms of inclusivity, materiality, responsiveness, and impact. It’s the first time that a third-party organization has been introduced to assess the report by Sinochem International.
Yin Gefei, co-secretary of ISO 26000 Stakeholder Global Network, said that the report made comprehensive disclosures based on global and domestic standards, with a broader perspective to address both challenges and opportunities, and the report also included opinions from more stakeholders to help vividly depict the corporate value proposition.
In 2021, Sinochem International will continue to accelerate the sustainability strategy, deliver the FINE 2030 Action, and contribute to the industry transformation and UN SDGs.