Addressing Climate Change
CNOOC Limited actively responds to climate change. CNOOC Limited refined its strategic deployment and developed a three-year action plan. Beginning with the systematic identification and analysis of climate-related risks and opportunities, CNOOC Limited is advancing a series of comprehensive and structured initiatives to improve climate governance.
Governance
CNOOC Limited treats climate change as a material strategic consideration，and has established a governance model in which the Board sets strategic direction, the Committee conducts structured analysis and deliberation, management drives implementation, and the execution level ensures full implementation. Dedicated climate risk management policies and procedures have been developed to ensure that climate considerations are deeply integrated into the full cycle of strategy formulation and corporate decision-making.
To meaningfully strengthen its climate governance, CNOOC Limited has progressively embedded climate-related performance metrics into the remuneration frameworks of the Board of Directors and senior management. It has incorporated indicators such as carbon reduction volume, the development of new energy business, and natural gas production into the compensation system for "directors" and senior management of the company.
Strategy
To more scientifically and effectively identify the climate-related risks and opportunities, CNOOC Limited has analyzed climate change scenarios and time frame settings. For climate physical risk analysis, the Company has selected SSP1-2.6 (low emission scenario), SSP2-4.5 (medium emission scenario), and SSP5-8.5 (high emission scenario) as the physical scenarios for CNOOC Limited. For climate transition risk analysis, the Company has selected the Net Zero Emissions scenario (NZE) and the Announced Pledges Scenario (APS) as the transition scenarios for CNOOC Limited. Taking into account China's dual carbon strategic targets and CNOOC Limited's own development plans, the Company defines short-, medium-, and long-term time horizons for assessing climate-related risks and opportunities.
CNOOC Limited has conducted an assessment of its business exposure to physical and transition risks under both the SSP5-8.5 scenario (high-emission scenario) and the Net Zero Emissions (NZE) scenario. The resilience assessment indicates that assets most vulnerable to physical risks are primarily offshore oil and gas platforms located in the Beibu Gulf, South China Sea, and East China Sea, while assets most susceptible to transition risks are mainly oil-related. Although these risks may impact the Company’s financial position, comprehensive strategies have been implemented to enhance climate resilience. Opportunities were assessed based on projected trends in the global energy landscape under the NZE and APS. The results show that the Company’s low-carbon industry development opportunities are primarily in natural gas and renewable energy.
During the year, the Company, through further financial impact assessments, has identified typhoons/tropical cyclones as the physical risks with high financial significance, market supply and demand changes of hydrocarbons as the key transition risk, and the development of low-carbon industries including natural gas as the primary opportunity.
Impact, Risk and Opportunity Management
CNOOC Limited has integrated climate change into its long-term strategy and enterprise-wide risk management system, developing dedicated climate risk management policies and continuously strengthening its climate governance capabilities. CNOOC Limited organically combines climate change risk assessment with risk management practices, establishing a robust climate risk management mechanism built around a "risk assessment – risk response – monitoring and review" process cycle.
Metrics and Targets
The company sets clear carbon emission targets, regularly monitors and evaluates the progress towards achieving these targets, and ensures that all carbon emission indicators are kept within the annual control target range.
Carbon Credits
Domestically, CNOOC Limited completed compliance obligations in the Tianjin local pilot carbon market, leveraging green electricity offset policies to reduce compliance costs. Internationally, CNOOC Limited fulfilled carbon compliance obligations in accordance with local carbon market regulations in the United Kingdom, Canada, and Australia.
Scope 3
In 2024, to strengthen transparency and accountability in carbon emission management across its value chain, the Company officially initiated research on Scope 3 greenhouse gas (GHG) emissions. Shenzhen Branch was selected as the pilot unit, and all 15 Scope 3 categories were preliminarily assessed, providing a comprehensive understanding of the Branch’s Scope 3 emissions across the value chain. In 2025, following the Greenhouse Gas Protocol: Corporate Value Chain (Scope 3) Accounting and Reporting Standard (GHG Protocol) and considering the emission characteristics specific to the oil and gas industry, the Company identified Category 11 (use of sold products) as the primary emission source. An accounting guideline was established to standardize the accounting procedures, define emission factor sources, and guide the collection and compilation of activity data, ensuring completeness, consistency, and accuracy of the calculated emissions.
Internal Carbon Pricing
CNOOC Limited applies an internal carbon price to estimate the greenhouse gas emission costs of projects, informing carbon emission evaluations, planning studies, and ongoing economic assessments. Drawing on relevant national policies, domestic carbon trading market price dynamics, and authoritative forecasts of future carbon price trajectories, CNOOC Limited published its 2025 carbon price parameters, setting the internal carbon price at RMB 110 per tonne of CO₂ equivalent for 2025. This price will be updated on a rolling basis in line with national policy developments and the progression of China's domestic carbon market. Overseas projects will be assessed based on the carbon pricing policies of the respective countries.
