We strictly comply with the legal regulations and human rights protection requirements of the countries where we operate. Before project commencement, we assess the social, environmental, and economic conditions of local communities, including their needs, human rights protection, natural environment, and cultural heritage. We operate in accordance with regulations, and fully protecting the legal rights and interests of community residents.
The Company incorporates knowledge of human rights and compliance management into its daily management system, clearly defining employee rights and corporate responsibilities through the Collective Labour Agreement and internal management regulations. The Human Resources Department regularly conducts specialised training for management and various departments, providing detailed interpretations of relevant policy content, and distributing relevant policy and system manuals for department managers to study. At the same time, compliance management reminders are sent each week, providing in-depth interpretation of core policies and systems, strengthening all employees' understanding and execution of human rights protection and compliance management, providing strong support for building a fair and respectful work environment.
To protect the interests of residents around oilfields, the Company has established an "Oilfield Land Acquisition Compensation Mechanism" in accordance with the relevant laws and regulations of the resource countries. In the process of oilfield land acquisition, we actively coordinate with local governments, oil companies, and landowners. After obtaining consent from landowners, we organise representatives from the three parties to measure the land acquisition area on site and provide timely compensation to the displaced residents according to the compensation policy.
In addition, the Company proactively identifies and assesses potential negative impacts and risks related to human rights by conducting due diligence covering its own operations, affiliated enterprises and business partners. The human rights risk issues identified include but are not limited to forced labor, human trafficking, child labor, restrictions on freedom of association and collective bargaining rights, discrimination, etc. The groups facing human rights risks covered include but are not limited to self-owned employees (with a focus on the employment of females and minors), third-party employees, local communities, indigenous people, etc.
To effectively manage the identified human rights risks, the Company has implemented a series of preventive measures in all operational areas, including: supporting a just transition (promoting energy transition through cooperation with stakeholders to help safeguard human rights), building harmonious community relations (developing and implementing a framework for engagement with indigenous communities and actively responding to their concerns), enhancing transparency of environmental supervision (inviting local residents, environmental volunteers, and experts to participate in and oversee environmental practices), and standardising the management of security contractors (ensuring that their operations strictly comply with human rights requirements).Meanwhile, the Company has established a complete remedial mechanism, providing economic compensation and non-material compensation plans, as well as a measures to prevent recurrence.
In 2025, the Company became aware of controversies concerning labor human rights issues involving suppliers of Dushanzi Petrochemical Company in the Xinjiang Uyghur Autonomous Region, China. To timely and prudently assess the potential negative impact this might have on its subsidiary, Dushanzi Petrochemical Company, the Company commissioned the internationally renowned UK law firm Herbert Smith Freehills Kramer and China's top law firm Fangda Partners to conduct a comprehensive and independent specialized human rights due diligence investigation into the relevant circumstances. The results of the third-party investigation （Independent Investigation Report on Allegations of Forced Labour Raised in MSCI's ESG Controversies Report） indicate that neither Dushanzi Petrochemical Company nor its suppliers were found to have employed so-called "coercive labor transfer" or participated in any "coercive labor transfer programs"
The Company consistently complies with and supports the Ten Principles of the United Nations Global Compact through practical actions. It has deeply integrated the United Nations Global Compact principle of "elimination of forced labor" into its operational mechanisms, strictly opposing all forms of forced and compulsory labor. Furthermore, the Company has established robust labor employment review and supervision mechanisms, conducting stringent audits across processes such as new employee recruitment, daily human resources management, and supplier/contractor onboarding to prevent any human rights-related risks. Our target is to ensure that there are no incidents of human rights violations. Up to now, no incidents of human rights violations had occurred.
The Company considers any actions that lack factual basis and seek to stigmatize or defame the Company and its subsidiaries as an infringement upon its right to reputation. The Company will resolutely take legal measures to defend its rights and pursue legal accountability against the relevant parties.
Human Rights Protection of Overseas Security Personnel
The Company strictly manages security contractors, requiring them to conduct their security duties responsibly and in accordance with ethical standards to ensure the protection of human rights.
