CNOOC Limited is committed to developing natural resources in a safe, efficient, and environmentally-friendly manner and supplying the society with clean, reliable and stable energy and meeting the reasonable energy demand of the people, which comprises our commitment to sustainable development. The economy, environment, and society are the three cornerstones for the Company to develop energy resource and create value. As our business and economic contributions grow steadily, we will press ahead on the road of environmental protection and social progress. Continued efforts will be made to integrate economic, environmental and social factors to drive the sustainable development of the Company.
The Company believes that sustainable development should not only rely on the knowledge, beliefs and ideas of the management or individual employees. We must integrate sustainability requirements into our corporate management systems to make it part of our corporate culture.
We constantly assess our performance and make improvements and adjustments to ensure that our operations and management are more environmentally-friendly, efficient and safer, and to achieve balance in the development of the economy, environment and society.
Communication with Stakeholders
CNOOC Limited continuously strengthens its partnerships with stakeholders, proactively building an open, transparent, diverse, and ever-improving communication system. We proactively engage in in-depth dialogues with various stakeholders on multiple ESG-related issues, comprehensively assess the impact of the Company's operations on local communities, and pay particular attention to the needs and expectations of vulnerable groups, thereby continuously improving the ESG management system. We also develop and implement targeted community engagement plans and livelihood improvement strategies. Through responsible investments and concrete actions, we strive to promote sustainable community development, enhance people's well-being, and contribute to social harmony and prosperity.
Double Materiality Matrix
According to the materiality requirements of the Environmental, Social and Governance Reporting Code issued by the Stock Exchange of Hong Kong Limited (HKEX) and in response to the requirements of the Guidance on Self-Regulation of Listed Companies on the Shanghai Stock Exchange No. 14 -- Sustainability Report (Trial), CNOOC Limited has comprehensively met the expectations of shareholders, customers, employees, and other stakeholders. Through the preliminary selection of ESG issues, business reviews, and departmental consultations, the Company has identified and established a double materiality matrix that aligns with the characteristics of the petroleum industry and the Company's business operations. By enhancing transparency and providing comprehensive disclosures, CNOOC Limited aims to drive sustainable corporate development while highly honoring its due share of responsibility and creating long-term value for society.
The materiality analysis results of CNOOC Limited’s ESG issues in 2024 are as follows:
ESG Management
CNOOC Limited continuously improves its ESG framework, establishing a three-tier governance structure comprising the "Governance Level – Management Level – Execution Level". We incorporate ESG-related indicators into the compensation system of the Company's management, clarifies responsibilities at each level, and promotes the integration of ESG work with operational practices to enhance ESG management standards.
Governance Level: Board of Directors acts as the highest decision-making body for ESG matters, bearing full responsibility for formulating and implementing ESG strategies. Oversees and manages ESG-related goals and progress. Evaluates and identifies ESG risks, and ensures effective ESG risk management and internal control systems. Approves corporate governance reports and internal control compliance risk management reports.
Strategy and Sustainability Committee researches sustainable development issues, provides recommendations on related policies and strategies to the Board, monitors the Company's commitments and performance on key issues such as climate change, and reports to the board of directors in a timely manner. Reviews the annual ESG report, stakeholder communication outcomes, and materiality analysis results, provides recommendations to the board of directors on the appropriateness and effectiveness of related work, and ensures the Board's full participation in ESG governance and information disclosure.
Management Level: ESG Leading Group led by the Executive Director/CEO, with leaders from key departments including Human Resources, QHSE, and Technology & Digitalization as members. Implements the Board's decisions, oversees major ESG management matters, and reviews ESG progress reports.
Execution Level: ESG Management Office organizes, coordinates, and supervises the implementation of ESG initiatives. Develops annual ESG work plans and submits them to the ESG Leading Group for review.
The Company has established a systematic ESG governance and oversight mechanism. The Board of Directors receives biannual reports from the Company's management on its risk control and compliance efforts, and at least one specialized report from the Company's management on safety and environmental protection annually. The ESG Leading Group convenes a meeting at least once a year, during which major ESG matters are reviewed, and the work priorities in the future are determined. The ESG Management Office is responsible for executing the decisions made in these meetings, ensuring a comprehensive management process from top-level decision-making and communication to implementation. In 2024, the Company held one ESG Leading Group meeting, three ESG Management Office meetings, and 56 meetings on climate change information disclosure, effectively deploying and researching various tasks to provide strong support for the Company's ESG management.
