可续 展报告 年可持续发 2014
SuStainability RepoRt 2014
Su S tainability Repo R t 司 公 团 集 工 化 国 中 ABOUT THE REPORT This is the fifth sustainability report published by China National Chemical Corporation (“ChemChina”). The report discloses information about the social responsibility commitments, practices and performance in 2014 of ChemChina on topics such as the business management, technical innovation, occupational safety, environmental performance, employee care and social harmony. Normative References The report is based on the Guideline on CSR Fulfillment by Central Enterprises issued by the State-owned Assets Supervision and Administration Commission of the State Council (SASAC), the Ten Principles of the United Nations Global Compact, the Sustainability Reporting Guidelines of the Global Reporting Initiative (GRI G3.1), the ISO 26000: Guidance on Social Responsibility (2010) issued by the International Organization for Standardization, and the CSR Reporting Guidelines for Chinese Companies (CASS-CSR 2.0) issued by the Chinese Academy of Social Sciences (CASS-CSR2.0). Scope of Report The report covers ChemChina’s activities from 1 January to 31 December 2014. In some instances content and information from outside the stated period may be included. The report covers ChemChina headquarters and its subordinate units. Data Sources All data used in this report comes from official documents and statistical reports of ChemChina. References to ChemChina Unless otherwise stated, all references to “ChemChina”, “Group”, “Company” or “We” refer to China National Chemical Corporation. Report Improvements Demonstrate green chemical progress to respond the revised Environmental Protection Law; Show key index to highlight good performance; Use charts, diagrams and tips, etc. to promote readability. Report Language The report is published in both Chinese and English. If any inconsistency or discrepancy exists between the two versions the Chinese version shall prevail. Obtain the Report To view or download the report, please visit the official website of ChemChina at www.chemchina.com.cn.
The report is printed on recycled paper. CONTENTS CONTENTS
MESSAGE FROM OUR CHAIRMAN / 02
CHEMICALS HELPS ACHIEVE THE CHINESE DREAM / 04
ABOUT US / 06 GOOD STRATEGY AND BUSINESS GOVERNANCE / 10 PERFORMANCE FOR THE CREATION OF DRIVING SOCIAL RESPONSIBILITY NEW VALUE NEW MANAGEMENT / 12 / 20 GROWTH THROUGH FOCUS / 16 TECHNICAL SETTING A NEW INNOVATION BENCHMARK FOR GREEN CHEMICAL INDUSTRY / 28 PRODUCTION – NEW OPPORTUNITY OF SAFETY / 38 LEADING THE DEVELOPMENT
OF CHEMICAL INDUSTRY China National Chemical Corporation Sustainability Report 2014
GREEN AND ENVIRONMENTAL, EXPANDING THE NEW SPACE / 44 EMPLOYEE GROWTH, CREATING NEW BUSINESS OPPORTUNITIES / 48 SOCIAL PROSPECTS FOR THE HARMONIES FUTURE / 62 AND SHARING THE NEW ACHIEVEMENT EXPERT COMMENTS / 64 / 56 GRI INDEX / 66 FEEDBACK FORM / 71
01 MESSAGE FROM OUR CHAIRMAN
Nowadays, social responsibility fulfillment has become an important means taken by an enterprise to address changes of complex internal and external environments, In 2014, on the basis maintain growth and stability and enhance the market competitiveness and risk- of conscientiously resistance capability. Integrating CSR into its development objectives and operating principles, ChemChina propels partners to fulfill responsibility, and devotes to implementing promoting sustainable development of the chemical industry on the basis of the decisions and achieving win-win results. deployments of the In 2014, global economy experienced sluggish growth with weaker-than-expected CPC Central Committee recovery, while China’s economy was featured by the three period superimposed (a and the State Council period with the growth slowing down, the structural adjustment progressing with difficulties and effects of early stimulus policies being digested gradually), increased and resolutions of the economic downward pressure, and overcapacity and scant demand of most SASAC, and adhering to chemical products. On the basis of conscientiously implementing the decisions and the general principle of deployments of the CPC Central Committee and the State Council and resolutions of the State-owned Assets Supervision and Administration Commission of the State seeking improvement in Council (SASAC), and adhering to the general principle of seeking improvement in stability, we achieved fast stability, we achieved fast growth in production and operation by deepening reforms, promoting structural adjustment, accelerating marketing changes and carrying out growth in production and all work well, while overcoming all difficulties in high spirits. operation by deepening reforms, promoting Giving advantages into full play, and developing diversified structural adjustment, services accelerating marketing We vigorously promoted marketing services, deepened application of modern marketing tools, and enhanced management over client information and product changes and carrying prices. We advanced construction of direct sales system, distribution system and out all work well, while e-commerce system, innovated models, broadened channels, updated means, overcoming all difficulties segmented customers, conducted pilot implementation of Chief Commercial Officer System, and held the marketing contest themed by “achieving good start by 100 days’ in high spirits. hard work”. We made breakthroughs in E-commerce service, launched more than 600 kinds of products and services, and achieved the E- sales of RMB17.5 billion, and an increase of 2,343 customers. 02 MESSAGE FROM OUR CHAIRMAN
Adjusting structures and optimizing the safety checks, and rectified 21,090 items, with the rate of allocation of resources 95.7%. We carried out various safety publicity and education activities themed by family safety, organized employees’ We promoted transfer of quality resources to major businesses, family members to visit our factories, and held the “family optimization and reorganization of professional sectors, and affection meetings” to build the culture of family safety. We gradually gave up the businesses which are non-core and lack researched and developed green and environment-friendly competitiveness. We drove the diversification of property rights, products, and promoted low carbon development of the and attracted foreign investment of RMB14.6 billion. We won chemical industry. the “Best Organization Award” for central enterprises in equity transaction for 4 consecutive years. We optimized product Assuming civic responsibility and promoting structures, and vigorously developed hi-tech & high value- added products. We promoted the reform of collectively owned social harmony factories operated by state-owned enterprises, and “water We continuously improved the supplier management system, supply, power supply, heat supply and property management” enhanced suppliers’ ability to assume responsibility, and separation. We cleaned up 23 enterprises below level 3, and attentively cared for employees to enhance their happiness recovered the long-term equity investment of RMB120 million. sense. We actively promoted the communication between the Chinese and foreign employees, and the organic integration Optimizing management, digging potentials, of Chinese and Western cultures. We safeguarded the reducing costs and increasing efficiency openness and transparency of donations, and tried to create We consolidated financial basis, optimized capital management, a social atmosphere of mutual help. constantly improved quality and efficiency of final accounting, and were rated as the advanced unit of annual final accounts by 2015 is a critical year for deepening reforms the Ministry of Finance. Our report was audited to be standard comprehensively. We will center on improving quality and with unqualified opinion for 8 consecutive years. We carried out effectiveness, and focus on effective incentive constraint benchmarking activities, made up for management weakness, mechanism to promote the transformation and upgrading and vigorously promoted lean management mainly through of ChemChina to a new height. We will accelerate economic China National Chemical Corporation Sustainability Report 2014 continuous improvement/world-class manufacturing. We restructuring, and constantly improve the“3+1” business strengthened supplier management and centralized purchase portfolio that centers on material, life and environmental of coal, crude oil, calcium carbide, natural rubber and steel, sciences and basic chemical engineering. We will improve optimized logistics distribution, and continuously reduced level of internationalized business operation, strengthen procurement costs. By promoting the in-depth integration the cooperation between enterprises at home and abroad, of business and information, and deepening application of enhance global resource allocation, and strive to become a collaborative office and ERP systems in the fields of production world-class enterprise with international competitiveness. and operation, human resources and financial management, We will promote the construction of science & technology we continuously enhanced management & operation efficiency. innovation platform, establish the innovative system of industry-university-research cooperation, and improve Strengthening platform construction and the supporting capacity of science and technology for the enhancing innovation capability “3+1” strategy. We will strengthen energy conservation and emission reduction, and quality energy management, and We strengthened dominant role of innovation, promoted complete the energy-saving and emission-reduction goals the construction of innovation platforms, and continued to as stipulated in the 12th Five-Year Plan, so as to lay a solid increase investment in science and technology. We constantly foundation for establishing a globally leading position. improved the system of scientific and technological innovation. Owning 123 R&D institutes of various kinds, including 28 ones We sincerely accept the supervision from all walks of of national level, the Group won the “National Science and life, willing to work with you for sustainable and healthy Technology Advancement Award for Engineering Enterprises development of ChemChina! Excellent in Technology Innovation” by SASAC. We launched 813 scientific research projects of various kinds, including 168 state key projects. With 741 filed patents and 743 authorized patents, we ranked top 5 among the central enterprises in four consecutive years.
Improving the SHE system and realizing energy conservation and emission reduction Chairman: We deepened the SHE management system construction, revised the SHE Performance Assessment Measures, and increased the intensity of rewards and punishment. We formulated the Five-year Plan for Production Safety and the Assembly of Accident Cases of the Group, carried out
03 CHEMICALS HELPS ACHIEVE THE CHINESE DREAM Human beings cannot be without clothing, food, housing and transportation, and these things cannot be without materials. Of these materials, some exist in nature, while even more are artificially synthesized with chemical processes, e.g., fertilizers, pesticides, plastics, synthetic rubbers, synthetic fibres, etc. They are of all shapes and colors and are ubiquitous. They have transformed the original form of production technology and transportation, improved people’s living conditions, and made our material lives even more rich and colorful. Chemical products have not only provided convenience to people’s lives, but even more, they have promoted the development of the national defense industry and related industries, as well as science and technology, and have greatly raised national economic benefit and regional economic benefit. CREATE A BETTER LIFE
HOUSING
Plastics, coatings, sealing agents, adhesives, waterproof materials, concrete additives and other new building materials are used to improve housing conditions.
CLOTHING
Chemicals are used as raw materials in the production of cotton fiber, artificial fiber and synthetic fiber, and in various dye stuffs and printing and dyeing auxiliaries in the textile industry. Tanning agents, leather fatliquoring agents, dyestuffs, coating agents and other auxiliaries are used in the tanner industry to shorten the leather production cycle, simplify the process, and reduce costs.
FOOD
Food additives and chemicals for food storage and packaging purposes are provided to broaden food choices. “Malan noodles” provides the common people with a nutritious, uniquely tasting, convenient and fast-food chain.
Chemicals are used in the production of chemical fertilizers and pesticides to increase both crop output and farmer’s income, helping ensure sufficient food for humans.
TRANSPORTATION
Provide chemical materials for the production of automobiles, ships and airplanes. Four kinds of high- molecule materials are used in the auto industry, i.e., plastics, rubber, adhesive, and coating to reduce the weight and fuel consumption of vehicles and increase speed. Provide asphalt additives, concrete admixtures and other chemicals for the transportation construction. China Auto Care provides convenient and efficient services of vehicle maintenance and repair, and automotive components manufacturing. SUPPORTING NATIONAL DEFENSE CONSTRUCTION
Various basic and high-performance chemical materials including high temperature and pressure-resistant materials as well as cryogenically processed new materials are used by the national defense industry. Auxiliary products are provided to the Shenzhou series of airships, the Tiangong Program, Chang’e lunar exploration satellites and large-type passenger planes, etc.
PROMOTING INDUSTRIAL UPGRADING
Raw materials such as plastics, rubber and coatings are used in the manufacturing of household appliances.
Chemical materials such as plastics and special- purpose chemicals are used in the manufacturing of many components in the machinery industry. Equipment, materials, specialty chemicals and High technology and new materials assaying and testing technologies are used in enable the development of new sources modern biotechnology. of energy such as solar energy, New materials, technology and equipment support biomass energy, maritime energy, the environmental industry. geothermal energy and wind power. Supply chemical additives, mining explosives and other necessary chemical products for the coal industry and the mining industry. Provide antioxidant, anti-corrosive additives and Provide the telecommunications other chemical catalysts for the catalytic refinement industry with chemicals from of crude oil. communication cables and optical Chemicals such as caustic soda and chlorine gas cables to telephones and mobile phone are used in paper-making industry. casing. A total of 16,250 kinds of electronic chemicals covering 18 categories are used in the electronics industry. These include base materials, photoresist, cleaning agents and solvents, ultra-clean high- purity agents, ultra-clean high-purity gas and metal organic compounds and encapsulating materials. Chemical materials and processing technologies are used in hardware that enables data acquisition, transmission, storage, processing and displays in the IT industry. Develop innovative products for the medical industry, and provide solutions for various applications and designs. ABOUT US Company Profile Headquartered in Beijing, ChemChina is a large-sized state-owned enterprise formed out of enterprises affiliated to the former Ministry of Chemical Industry. As the largest enterprise in China’s chemical industry, ChemChina operates six business units covering advanced chemical materials and special chemicals, basic chemicals, oil processing, agrochemicals, tire & rubber products and chemical equipment.
ChemChina, a national innovation-oriented enterprise, operates production and R&D facilities in 140 countries and a comprehensive marketing network system. We have six strategic business units (SBUs), two directly affiliated units, 112 production and operation enterprises, six overseas enterprises, 24 research institutes and design academies, and control nine A-share listed companies. In 2014, we ranked the 276th on the global top 500, up from 355th in 2013. Our business income was RMB254.5 billion with RMB274.2 billion in total assets.
We uphold our commitments to creating a better life through the use of chemicals. We act responsibly, advocate responsible care, and serve people’s material interests through our chemical products, and lead the industry in the adoption of high technology to become a top-notch chemical company in the world.
06 China National Chemical Corporation Sustainability Report 2014 07
ABOUT US Chemical equipment Rubber products Basic chemicals Agrochemicals Advanced chemical materials and and chemical materials Advanced special chemicals Oil processing and refinery products New chemical materials and Basic chemicals Petrochemical and refinery specialty chemicals products
• Own production and development • Low-cost, recycling and clean • Combined annual crude oil facilities for dozens of high-tech and production of chlorine and alkali processing capacity of 25 million high-value-added products such as plants tons, and use an oil-to-chemical silicone, fluororubber, methionine, technological line metallurgical-process solar-grade polysilicon
• World’s second largest methionine • The largest producer of caustic soda • Own the first 500,000 tons per year producer and PVC in China DCC plant and the first 500,000 tons • The world’s third largest silicone • The world’s third largest and Asia’s per year CPP plant in China producer largest PVC paste resin manufacturer • Asia’s largest PBT resin producer • China’s largest producer of fluororubber, neoprene and epoxy resin
Agrochemicals Rubber products Chemical equipment
• Including herbicides, pesticides, • Control and operate tyre, rubber • ChemChina enjoys technical bactericides and plant growth products and latex products superiority in the chemical machinery regulators, capable of producing manufacturers that produce a variety manufacturing field and owns the more than 120 varieties of original of high-tech and high-value-added only ion membrane caustic soda plant medicine and more than 800 products such as tyres, polysulfide production technology in China preparations—with nearly 5,000 rubber, specialty rubber products and registered products and more than new-process charcoal black 6,000 trademarks in 120 countries worldwide
• The world’s largest non-patented • The combined production capacity • The world’s third largest rubber agrochemical manufacturer of all-steel radial tyre, semi-steel machinery manufacturer • Ranks first in China in terms of radial tyre, aviation tyre and giant • Our Yixiangji series is the best-selling market share of products such as engineering tyre ranks in the top Chinese-made rubber machinery in dichlorvos, dipterex, pymetrozine, three in the Chinese tyre industry the international marketplace ethephon, uprofezin, endosulfan • Rank second in China in terms of belt • ChemChina ion membrane caustic emulsion, dimethyl tetrachloro and tubing products such as high- soda plant ranks third in the world sodium, 1-Nitrotoluene and toluidines strength conveying belt and braking in terms of output and sales volume, tube and has 70% domestic market share • Ranks first in medical glove and meteorological balloon productions in China
Business unit Business overview Position in the industry
08 China National Chemical Corporation Sustainability Report 2014 09
ABOUT US 27 364 692 1.18 0.05 2.14 2012 2,674 2,017 40.66 72,450 133,121 10,799.08 12,804.34 29 250 605 1.09 0.08 1.80 2013 2,936 2,440 41.50 53,700 125,002 10,502.11 12,462.46 28 398 743 1.05 0.04 1.62 2014 38.83 2,742 2,545 48,900 119,838 10,270.01 12,168.35 % % % tons Unit RMB10,000 10,000 tons RMB100 million RMB100 million RMB100 million Tons of standard coal per RMB10,000 Percentage of female staff Number of invention patents granted Total volume of effluent discharge Staff Employee Environment Comprehensive energy consumption per RMB10,000 output Spending on occupational safety Safety Mortality per 1000 R&D spending Technology Total assets Economic performance Business income R&D spending as a percentage of business income Number of patents granted Indicator COD emissions Key Performance Matrix Key Performance STRATEGY AND GOVERNANCE
1. VISION AND VALUES 2. STRATEGIC OBJECTIVES Our vision We will re-define our “new science To become a world-class, and new future” strategic position resource-efficient, environmentally and build a business portfolio friendly, and intrinsically safe that centers on material, life and chemical company that creates environmental sciences for its economic and social value. future business success but is strategically supported by basic Core values chemicals. Creating value for shareholders and jobs for the wider society. We quickened our transformation and our approach to business growth by adding four core capacities: business portfolio optimization, world-class manufacturing, investment and project management, and marketing and application development. We achieved this by optimizing our capital structure, our business structure, our organizational structure and our Envir human resources structure. on ce m n e ie n c t a s l
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M a c e t e n ria l s ci e
10 STRATEGY AND GOVERNANCE
3. ORGANIZATIONAL Administrative Office STRUCTURE (office of the Party Committee)
Office of Production & Operation (Safety and Environmental Department)
Personnel Department (Organization Department of Party Committee)
Finance Department
Planning and China National Development Department Chemical Supervision Department Corporation (Disciplinary Inspection Committee Office) PR Department (Propaganda Department of the Party Committee) China National Chemical Corporation Sustainability Report 2014
Management & Information Department
Science and Technology Department
Commerce Department
4. CORPORATE GOVERNANCE
We have adopted the board system that is in accordance with the provisions of the Company Law of the People’s Republic of China and other applicable Chinese laws and regulations. The board of directors is the highest power and decision-making body, which is responsible for the assets management activities of the Group, exercises their rights in accordance with the provisions of the Company Law and SASAC. The board of directors sets up special committees such as the strategy and investment committee, the nomination committee, the remuneration and appraisal committee and the audit and risk management committee, etc. SASAC fulfills its duties as a promoter on behalf of the central government, and the State Council maintains a board of supervisors for major state-owned enterprises at ChemChina. The board supervises the company’s corporate value and ensures the appreciation of state-owned assets in accordance with the Interim Regulation on Board of Supervisors of State-owned Enterprises.
11 SOCIAL RESPONSIBILITY MANAGEMENT
In its day to day operations, ChemChina abides by moral codes as well as laws and regulations, enhancing its level of transparency, respecting and responding to the concerns and expectations of stakeholders. It undertakes responsibility towards its effect on the economy, society and the environment, encouraging the harmonious mutual benefit of the country, enterprises, employees, society and the environment. 1. GOVERNANCE OF RESPONSIBILITY
ChemChina attaches importance to and actively promotes social responsibility work. It has established a Social Responsibility Promotion Work committee with the general manager as the first person responsible. It is responsible for the overall leadership and harmonization work during the social responsibility promotion process of the group company. The committee has set up an office beneath it, it is managed by production and management of the group company and is made up from the planning department and related staff. The Social Responsibility Promotion Work Office is responsible for routine work such as setting up systems related to social responsibility promotion work, organizing social responsibility work training, and compiling and issuing reports concerning annual sustainable development for the group company.
ChemChina’s corporate social responsibility organization chart
Production and Management Social Responsibility Social Responsibility Office Work Committee Work Office Planning Department
2. CSR AWARD
In “The Seventh International Conference on CSR Reporting in China” sponsored by China WTO Tribune, “ChemChina Sustainability Report 2013” won “GoldenBee 2014 Excellent CSR Reports – Leading Enterprise” award.
12 SOCIAL RESPONSIBILITY MANAGEMENT 3. STAKEHOLDERS AND KEY ISSUES
Stakeholder Common objective Main communication channel Our effort
• Promoting strategic • Maintain and increase the value transformation and marketing of national assets reform • Technological innovation guides • Regular work reports • Increasing science and industry development • Participation in corresponding technology innovation system • Safe production, energy meetings construction conservation and emission • Submitting information • Improving the HSE reduction SASAC management system, • Bring employment to promote promoting “zero emissions” social harmony management
• Promoting scientific and technological innovation, • High quality goods and services accelerating the building of • Visiting clients • Abide by commercial ethics private brands • Contractual agreements Clients • Satisfy diverse demands • Providing products that concord with technological standards of environmental protection
• Linking salary with achievement • Reasonable salary and welfare • Capability and quality • Training and development of • Labor union activities assessments and performance professional career • Workers’ congress meetings feedback Employee • Good work environment • Establishment of corporate culture
• Promoting the combatting
• Paying taxes according to law China National Chemical Corporation Sustainability Report 2014 of corruption and upholding • Compliance with the law • Participating in government integrity • Drive regional employment and investigations and surveys • Communicating actively Government economic development and signed cooperation with various government agreements departments
• Transparent Procurement Suppliers/ • Fair competition • Industry conferences and • Scientific and technological cooperative • Encourage industry progress forums partners/those in the innovation same industry
• Maintaining contact with environmental protection • Energy conservation and • Reasonable use of resources administration and social emission reductions • “Zero emissions” management organizations • Green development • Environmentally friendly work Environment • Learning and exchanging green production technology
• Chemical Industry Museum of • Promoting local employment • Devotion to public welfare China • Promoting cultural fusion • Serving community development • BlueStar Summer Camp • Working for the public good Community • Community volunteer events
13 4. RESPONSIBILITY MATRIX
Good business Driving new growth Setting a new performance for the through technical benchmark for creation of new value innovation production safety
• Optimizing HSE system • Building innovative platforms construction • Persisting with “3+1” business for science and technology • Strengthening trouble portfolio • Building science and shooting • Continuous improvement of technology innovation teams ChemChina • Strengthening of emergency management levels • Promoting application of management • Internationalized operations science and technology • Strengthening management of innovation results dangerous chemicals
Advanced chemical • Launch Integrated Product • Strengthen safety production • Actively expand business materials Development (IPD) system inspection and standard work overseas and special construction specification management chemicals
• Resource integration, • Carry out sustainable Basic promotion of construction of • General survey of whole improvement work for all staff chemicals scientific and technological system’s basic safety work and processes platform
• Strengthen DCS application Oil processing • Strongly implement technical optimization • Strengthen safe production and refinery innovation and management • Pursue “client-manager cost management products project management mode”
• Open up public WeChat • Establish digital “wisdom Agrochemicals platform for “Jiangsu Anpon • “Kind safety message” factory” Electrochemical Co., Ltd”
• Protect intellectual property Rubber • Whole value chain rights • Launch safety and products management • Construct national level troubleshooting assessment enterprise technology center
• Accelerate integration of • Accelerate marketing • Safe management network Chemical scientific and technological integration construction equipment innovations
14 SOCIAL RESPONSIBILITY MANAGEMENT
Green and Employee growth, Sharing new environmental, expanding creating new business results in a the new space opportunities harmonious society
• Promote “zero emissions” • Implement “going out” and “attracting in” • Guarantee basic rights and interests management strategies for employees • Strongly encourage energy • Improve supplier management • Encourage vocational education conservation and emission reduction mechanism • Promote integration of CDM results • Research and develop environmental • Encourage cultural fusion in various • Create a harmonious corporate culture protection technology aspects
• Systematically promote process • Increase attraction of occupational • Improve supply chain management optimization, raise general efficiency managers
• Strengthen energy efficiency • Promoting careers of employee, • Strengthen fixed-point poverty China National Chemical Corporation Sustainability Report 2014 management planned projects alleviation
• Release “Work Post Responsibility • Promote performance management • Promote cooperation between for SHE Oil and Gas Company” system construction enterprises and banks
• Strengthen employee assistance • Strive to conserve resources • Assistance for poor areas mechanisms
• Cleaner production • Enrichen spiritual and cultural lives • Actively participate in charitable • Raise resource utilization efficiency of female workers donations
• Lower greenhouse gas emissions • Actively recruit fresh graduates • Promote supplier responsibility
15 FOCUS
GREEN CHEMICAL INDUSTRY – NEW OPPORTUNITY OF LEADING THE DEVELOPMENT OF CHEMICAL INDUSTRY
Chemical engineering and chemicals are no source of pollution, but the technology source for curing pollution and an effective means for resource conservation. They are also an important safeguard for building ecological civilization and a beautiful China.
16 FOCUS
17 Zhou Shengxian, Minister of Environmental Protection, noted at the 2015 National Work Conference on Environmental Protection that the economic and social development of China had entered a new normality under which the growth rate changes from high speed to intermediate-high speed, the economic structure transforms from medium-low end to medium-high end and the development momentum shifts from factor-driven and investment-driven to innovation-driven. Under the new normality of economic development, some new phase characteristics and tendency changes have shown in the fields of ecological civilization construction and environmental protection. Environmental protection is not only faced with new opportunities, but also confronted with new challenges.
Coordination of the relationship Constraint from resources and Guidelines between environment and economy environment
Insist on protection and prevention first; Emphasize “the coordination between Clearly realize the urgency and difficulty pay more attention to strict prevention economic and social development in protecting ecological environment from source, strict management of the and environmental protection”; and controlling environmental pollution; process as well as strict punishment more conscientiously promote green strictly observe the red line of ecological in case of any consequence. Give top development, cyclic development protection and let the overdrawn priority to protection and form a joint and low-carbon development; realize resource and environment recuperate force for comprehensive anti-pollution economic development and people’s and build up strength gradually; and ecological protection. well-being improvement while increase the ecological product supply protecting the environment. and environmental capacity.
Deeply Understand and Actively Adapt to the New Normality of Ecological Civilization Construction and Environmental Protection
ChemChina strictly abides by the environmental laws and regulations, sticks to “zero mission” concept, fulfilling low carbon and recycled production theory to lead the development of green industry. We invest a lot in development of new technologies to reduce chemical pollution and realize clean production, and also actively promote environmental technologies, and provide innovative and environmental services, to change wastes into treasure and continuously create economic and social values.
Integration of environmental protection concept in production
Some by-products are often generated during manufacturing of chemical products, thus causing negative impacts on the environment. We always adhere to the “zero emission” concept, actively explore the “cyclic utilization, clean production” road, conduct optimal integration during production, and strictly control pollution from source. We advocate source reduction, reuse and recycling of wastes, reduction of waste emission and toxicity, as well as adverse impact of product life cycle on environment, and change of chemical pollution governance from treatment after pollution to governance from source.
Case: Zhonghao Chenguang Research Institute of Chemical Industry Fluorooctanoic Plasma Bio- acid recovery incinerators processing built a “green factory” units units Zhonghao Chenguang Research Institute of Chemical Industry actively conducts Invested nearly RMB100 front-end control and source control. We invested nearly RMB100 million in million in equipping 20 equipping 20 sets of environmental protection devices including fluorooctanoic sets of environmental acid recovery units, plasma incinerators, and bio-processing units. We established protection devices environmental protection branches through integration, and actively advanced the plasma incineration project with annual processing capacity of 2,000 tons Front-end control Source control on principles of front-end comprehensive utilization supplemented by end Front-end Supplemented processing, which substantially enhanced the capability to dispose “three wastes comprehensive by end (industrial waste water, waste gas and residues)”. We launched the project of utilization processing perfluorooctanoic acid recovery with new technology to comprehensively recycle from source, which could save more than RMB10 million a year after operation. In cooperation with Landscape Planning and Design Research Institute of Southwest University, we renovated the landscape in the production base to build good production environment and working environment. The renovated production Actively advanced the plasma incineration project with annual processing capacity of base has a total of more than 800 trees, more than 320 strains of shrubs, 2,262 2 2 2,000 tons m of ground cover plants, and 15,308 m of lawn. Without dirty, disorderly and · Enhanced the capability to dispose three wastes bad situation of production sites of traditional chemical enterprises, the new base (industrial waste water, waste gas and residues) shows a new image of “green, healthy and pleasant garden-like factory”. · Launched the source recycled project · Saved more than RMB10 million a year
18 FOCUS Environmental service innovation
For us, environmental factors play a central role in development of new products. To win customers’ recognition, quality products must have good environmental compatibility. We closely combine economic benefits and environmental protection in development and innovation of technologies, and promote environmental technologies through rich expertise.
Case: BlueStar Water Treatment Technology Company participated 70% of the water supply in construction of “Bird’s Nest” is recycled water, of Design of Bird’s Nest (National which nearly one third is Stadium) maximizes the use of water resources, and 70% of its water supply rainwater is recycled water, of which nearly one third is rainwater. As the constructor of central rainwater processing room, BlueStar Water Treatment Technology Company designed the steps of triple purification (sand filtration, ultrafiltration, and nanofiltration) on the basis of comprehensively considering safety elements and overcoming space restrictions, to address water quality fluctuations, meet various
environmental conditions, and achieve China National Chemical Corporation Sustainability Report 2014 the compliance after treatment. Relying on the best design, meticulous construction, and rigorous testing, we smoothly completed the water supply tasks during the Olympic Games.
Case: Southwest Research and Design Institute of the Chemical Industry made civil natural gas with coke oven exhaust Coke oven gas is one of the main by-products of the coking industry. About 400 cubic meters of coke-oven gas would be generated to smelt 1 ton of coke. If coke-oven gas is not processed properly, enormous ecological and safety dangers will come into being. Southwest Research and Design Institute of the Chemical Industry developed the leading patented technology of coke oven gas purification and methanation, which can help make synthetic natural gas with Coke oven gas is one of the main by-products of Southwest the methane concentration of more than 88%, by turning coke oven gas into methane through the coking industry compressing and heat transfer Becoming methane through purification, Institute purification, compressing and heat transfer first, and then separating hydrogen from the patented 400 cubic meters of technology mixed gas through the gas separation technology. The technology achieved the zero emission 1 ton of coke of wastes, and has been applied in the industrial unit of Shanxi Guoxin Zhengtai Energy coke-oven gas Development Co., Ltd. with the capacity of making synthetic natural gas (SNG) with 240 million Purification Nm3/a coke oven gas after methanation. The project can achieve annual emission reduction of 240 million cubic meters of coke oven gas, 200,000 tons of carbon dioxide, 120 tons of sulfur Methanation dioxide, and 10 tons of dust. With the capacity to generate synthetic natural gas of 100 million Gas separation cubic meters annually and replace coal of 1.46 million tons, the project can achieve clean technology production of coking industry and increase the added value of coke oven gas and coal tar Natural gas Methane products. In addition, it is of great significance to promote energy conservation and emission Separating hydrogen reduction and substitute energy. from the mixed gas
19 GOOD BUSINESS PERFORMANCE FOR THE CREATION OF NEW VALUE
On the basis of seeking improvement in stability, ChemChina, through adjustment, optimization and upgrading of industrial structure, expands major businesses, promotes transformation of development mode, and constantly enhances comprehensive value creation ability and core competitiveness. 276 254.5 1,860 Ranked 276th on the Business income Achieved profit RMB1,860 global top 500 RMB254.5 billion million
20 GOOD BUSINESS PERFORMANCE FOR THE CREATION OF NEW VALUE 1. OPTIMIZING OUR INDUSTRY MIX
In accordance with the 12th Five-Year Plan, we continued to promote transfer of quality resources to major businesses, optimization and reorganization of professional sectors, and gradually gave up the businesses which are non-core and lack competitiveness, and further advanced the “3+1” pattern.
Typical initiatives
We continued to promote the adjustment and optimization of six business sectors, and deployed the development strategy for chemical new materials, specialty chemicals, agrochemicals, basic chemicals and technology sectors. We analyzed and studied the challenges to the industries of polysilicon, polyformaldehyde and carbon fiber, and explored the industry integration and restructuring. Adama consolidated domestic agricultural assets by merger, and built preparation bases to strengthen its global industry position. Academy of Sciences and China Haohua Chemical Group Co., Ltd. merged and formed technology sector of ChemChina, made clear development positions and optimized the allocation of resources.
2. OPERATIONAL RISK China National Chemical Corporation Sustainability Report 2014 PREVENTION AND Typical initiatives CONTROL We established the system of three levels of We strengthened prevention and control risk internal control organizations, formulated of operational risks, deepened efficiency policies and standards, and updated the risk database. We completed the Comprehensive supervision, advanced audit rectification, Risk Management Report and the Internal gradually established the long-term Control Evaluation Report. mechanism of legal system, and gave We defined internal control responsibilities play to the synergistic effect of discipline and work procedures, established the weekly inspection, supervision, auditing and laws. meeting system and briefing system for the project group, and the mechanism of communicating with and reporting to PMO. We completed site surveys of 25 enterprises, Legal Risk Control put forward 345 suggestions for improvement, With major risk prevention as the core, and and conducted risk management training of enterprises in Shandong province for one time. risk management information system as a The Group reviewed 122 contracts throughout platform, we comprehensively conducted the year, participated in special studies of risk management and internal control. We contracts related to important projects, and put formulated the legal audit management forward legal advice. We solved any dispute between enterprises measures for economic contracts, rules across the system through mediation, and and regulations, and major decisions, avoided legal proceedings. and promoted informatization of risk management. The rate of legal audits over the three aspects has reached up to 100%.
21 Disciplinary Inspection We promoted improving Party conduct, combating corruption and upholding integrity, strengthened supervision on exercise of power over key links and positions including human, financial and material resources, intensified efforts to punish corruption behaviors, and enhanced the honest education, to create an environment of honest, high-quality and efficient enterprise development.
Typical initiatives
The Group signed 22 letters of responsibility for party conduct and integrity, and letters of commitment on honest practicing with main party and administration leaders of specialized companies and units directly governed by the Group; specialized companies concluded 1,084 letters of responsibility for party conduct and integrity, and 2,441 letters of commitment on honest practicing with the leadership members and key position personnel of subordinate enterprises. We carried out special governance to eliminate the behaviors such as leaders’ purchase of various consumer cards with public funds, and extravagant and excessive purchase of books.
Supervision and Inspection By deepening efficiency supervision, formulating and improving 116 39.06 systems and approving 162 projects, we avoided economic losses of Avoided economic losses of RMB14.8 RMB14.8 million, saved money of RMB77.92 million, and directly increased million, saved money of RMB77.92 million, economic benefits of RMB39.06 million. We strictly investigated and dealt and directly increased economic benefits with 4 matters in violation of rules and disciplines, restoring the economic of RMB39.06 million losses of RMB4.25 million. We established the system of reporting the disciplinary inspection and petition situation on a monthly basis, and the system of receiving petitioners in turn, and accepted 88 petition reports. 4.25 Investigated and dealt with 4 matters Typical initiatives in violation of rules and disciplines, restoring the economic losses of We focused on the combination of the discipline inspection and petition cases since the RMB4.25 million incorporation of the Group, thoroughly cleared up 429 clues, registered and created a ledger, laying a good foundation for specifying cases. Conducted efficiency supervision with specialized companies and reported 6 projects to the Supervision Bureau of SASAC for filing. We held 6 site promotion meetings in specialized companies and some level-3 enterprises. We examined and verified the qualification of 315 suppliers within the project management scope of the Group.
Audit We sorted out the internal audit procedures, defined audit purviews, established and implemented the long-term supervision system, and urged enterprises to rectify through self-inspection and joint inspection by the Group and specialized companies, so as to improve auditing efficiency.
Typical initiatives
We supervised specialized companies and subordinate enterprises in conducting self- inspection that covered 130 audit projects in the last five years, and reflected 1,305 problems. Group Headquarters launched 57 audit projects throughout the year (31 economic responsibility audit projects, 18 construction audit projects, and 8 special audit projects), involving an amount of RMB176.5 billion, and proposing 336 audit suggestions.
22 GOOD BUSINESS PERFORMANCE FOR THE CREATION OF NEW VALUE 3. IMPROVING OUR MANAGEMENT PERFORMANCE
We executed the requirements of SASAC of the State Council on enhancing Typical initiatives management, conducted management reform and informationization construction, conscientiously summed up and deeply analyzed experience gained and lessons drawn, further benchmarked world-class standards, and We cultivated 1,600 yellow belt established the long-term mechanism for management improvement, to achieve personnel and 90 green belt the standardized, systematic and scientific improvement of management level. personnel, with the belt personnel coverage of 12.46%. We strengthened management of belt personnel and 3.1 Continuous Improvement projects, established the internal expert database of the Group for We deeply promoted continuous improvement/world-class manufacturing, continuous improvement, and and improved key indicators and management level through benchmarking completed review of 154 black belt international best practices, finding weaknesses and using the methods of six and green belt projects. Total benefits sigma and lean production, which play an important role in cost reduction, of projects reached RMB127 million. efficiency increase, energy conservation and emission reduction, and quality We strengthened continuous improvement. improvement of scientific research institutes and small-sized enterprises, organized discrete industries and research institutes across the system to learn the experience of Nanjing Case: Nanjing 7425 Rubber & Plastic Co., Ltd. won the title of 7425 on continuous improvement, and integrated it into the continuous “Excellent Enterprise in Continuous Improvement” by the Group improvement concept. We analyzed favorable factors and In 2013, Nanjing 7425 systematically analyzed and reasonably classified various improvement opportunities of the problems of production, operating and management through lean production and Group with McKinsey 7S model and world-class manufacturing, and gave play to the role of continuous improvement in SWOT matrix, and defined work cost reduction and efficiency increase, and debottlenecking by taking the measures objectives, work ideas, assessment including talent training, continuous improvement, concept establishment and indexes and job contents according to culture building. In addition, Nanjing 7425 promoted the shift of enterprise preliminary investigation results. production to full-process management, and achieved the calculable earnings of up to RMB2 million. It won the title of “Excellent Enterprise in Continuous Improvement” by the Group in 2013, following other 7 branches of the Group. China National Chemical Corporation Sustainability Report 2014
3.2 Cost Reductions and Efficiency Increases Centering on cost reductions and efficiency increase, we tried to improve production efficiency by strengthening investment management, standardizing production budget management, improving cost accounting, and conducting centralized purchasing management. Improving Investment Management Practices Starting from improvement of investment decision-making process, we further controlled new investment projects, comprehensively combed existing problems, defined business plans and feasibility assessment contents, and made process standardized, content specific and execution normalized. Relying on the third-party agencies, we strengthened product market argument and analysis and improved scientificity of decision- making.
Typical initiatives
We normalized fixed asset investment, and made investment and construction separated from production and management. We strengthened process management, and established a project termination mechanism and a mechanism of early warning in case of exceeding budget and duration, to control project risks in a timely manner. After checking and solving the problems concerning project investment, decision- making and review, we revised the Development Strategy and Planning Management Measures of China National Chemical Corporation, the Administrative Provisions on Engineering Construction Supervision (interim), and the Management Measures for Investment in Fixed Assets and distributed to subordinate units for execution.
23 Reducing Non-Productive Costs We optimized the financing structure, strengthened centralized management of funds, and reduced use of account receivable occupying funds and inventory occupying funds, as well as unproductive expenditures, to improve fund use efficiency and promote internal potential digging, cost reductions and efficiency increase.
Typical initiatives
We saved financial costs of RMB52.975 million by controlling credit scale, broadening direct financing channels and reducing the proportion of high interest-bearing debts. ChemChina Petrochemical Co., Ltd. benchmarked advanced industry enterprises, reduced the processing losses from 1.07% to 0.87%, and the comprehensive energy consumption from 71.52 kg standard oil/ton to 63.80 kg standard oil/ton, and saved costs of RMB402 million. Dezhou Shihua Chemical Co., Ltd. PVC product per ton consumed 1.346 tons of calcium carbide, reaching the excellent level, and achieved a profit of RMB50 million, an increase of 40.9%. BlueStar optimized the processing technology for 7 sets of key units, enhanced the self- control level, and achieved the annual revenue of RMB174 million. Xinghuo Organic Silicone Plant reviewed the DCS application optimization, and maintained the self-controlled rate of the whole system at 90%, and the key control loop usage rate of above 80%.
Case: Zhonghao Chenguang innovated the supply chain management, to achieve cost reductions and efficiency increases Zhonghao Chenguang launched the project of “reducing cost and increasing efficiency based on supply chain changes”, and promoted the construction of supply chain and the whole supply chain system, to reduce costs and increase efficiency. Through strengthening process controls, reducing intermediate links and procurement costs, expanding supply channels and taking other measures, Zhonghao Chenguang aimed to continuously provide raw materials and equipment of good quality, reasonable prices and stable supply for product manufacturing. The project significantly reduced the production delays due to supply quality, and reduced the inventory fund occupation of RMB6 million. In 2012, bulk material quality conformance rate reached 94.8%, and cumulative cost of RMB10.54 million was saved.
Centralized Purchasing Management Coal We strengthened the centralized purchase of coal, crude oil, calcium carbide, natural rubber, steel and other bulk raw materials, formed the Crude oil standardized procurement process and information-based procurement platform, and optimized logistics distribution, to continuously reduce procurement costs.
Calcium Centralized carbide purchase Typical initiatives Natural rubber E-commerce procurement covered 45 major categories and 5,259 varieties, with transparent procedures, controllable process and traceable results. Centralized procurement of 2.97 million tons of coal, and saving costs of RMB35.15 Steel million. ChemChina Petrochemical Co., Ltd. optimized the logistics structure, increased the proportion of oil pipeline transportation, and saved cost of RMB156 million. ChemChina Petrochemical Co., Ltd. strictly controlled transportation loss of import crude oil, and reduced the depletion rate from 3.8 ‰ to 2.8‰, and losses of RMB50 million. Shenyang Chemical Industry Co., Ltd., Lanzhou Silicon Materials Co., Ltd. and other enterprises obtained the direct power supply preferences, saved electric charge of RMB73 million.
24 GOOD BUSINESS PERFORMANCE FOR THE CREATION OF NEW VALUE 3.3 Informationization Construction We promoted the in-depth integration of business and information technology, deepened application of collaborative office and ERP system in production and operation, human resources, financial management, etc., and continuously improved management efficiency.
Typical initiatives
We applied the ERP system for another 14 enterprises, and conducted ERP post evaluation of 12 enterprises, as well as system health examination and assessment rankings. We actively promoted the application of online training platform, training 550,000 personnel throughout the year. We continuously strengthened IT team building and operation & maintenance support capability, configured CIO for 60 enterprises in place, established 21 information systems in data centers to safeguard normal and smooth operation of more than 56,000 users, and resolved 20,629 incidents, with the user satisfaction of 99.7%. We comprehensively implemented and completed the launch and acceptance of the property management information system, achieved information management of basic property right management data, and made property right management more open, timely, and transparent. Relying on the HR system, we developed the financial dynamic talent database to facilitate daily management of financial staff and lay the foundation for subsequent work shift and CFO appointment. China National Chemical Corporation Sustainability Report 2014 Case: China National Tire & Rubber Co., Ltd. strived to create the “1+6>7” effect of informatization China National Tire & Rubber Co., Ltd. and its 6 subordinate enterprises established the CIO joint meeting mechanism, becoming the first “experimental field” of the Group’s CIO joint meeting mechanism. Through regular discussions, in-depth enterprise research, hiring external experts to provide advice and carry out expertise training, etc., members of the joint meeting will exchange and share the experience and achievements about management improvement and informatization construction, discuss to address the common issues of rubber companies concerning informationization construction, and actively integrate information resources of rubber companies, promote management improvement, and make traditional rubber companies modern and intelligent.
25 4. IMPROVING THE CAPACITY TO SERVE
In face of scant market demands and pressures from decline of product prices, we gave play to the “leading” role of marketing, innovated services based on customer demands, and promoted steady growth in production and management by improving services.
Typical initiatives
We deepened application of “eight major tools” for marketing, and enhanced management over client information and product prices. We advanced construction of direct sales system, distribution system and e-commerce system, and actively explored the chemical distribution forms. SinoShine International Energy Dalian Co., Ltd. was making transformation to distribution business, and BSI and the world’s largest distributor began to cooperate. ADAMA Branch in India comprehensively extended sales services, with the market size increased by 9 times.
Case: “Home of customers” of Zhenghe Petrochemical Group Co., Ltd. Adhering to the customer-oriented principle, Zhenghe Petrochemical Group Co., Ltd. tried to promote fine management of service quality, and built “home of customers” where customers can enjoy personalized consulting services and keep up-to-date with loading information at any time while resting, to improve service quality and customer satisfaction.
26 GOOD BUSINESS PERFORMANCE FOR THE CREATION OF NEW VALUE
Case: Huaxing Petrochemical improves customer satisfaction with fine services To grasp customers’ “hearts”, Huaxing Petrochemical comprehensively improves service “hardware and software” and quality through details. Huaxing Petrochemical gave full play to the role of shopping guide consulting service desk in guiding customers to complete all business processes, properly solving customers’ difficulties, and feeding back complaints and suggestions in a timely manner. Many prompt boards and bulletin boards were set up in the business lobby, to make customers keep abreast of information and dynamics on oil products and feel convenience. In 2014, customer satisfaction reached up to 95%. China National Chemical Corporation Sustainability Report 2014
27 DRIVING NEW GROWTH THROUGH TECHNICAL INNOVATION ChemChina strengthened innovation, improved the system of scientific and technological innovation and promoted scientific and technological innovation culture building. By scientifically allocating scientific resources and promoting the application of scientific and technological achievements, it injected inexhaustible impetus for its own development, and contributed to industry development. In 2014, ChemChina won the “National Science and Technology Advancement Award for Engineering Enterprises Excellent in Technology Innovation” by SASAC. 3,883 743 398 R&D spending 743 patents granted 398 invention patents RMB3,883 million granted
28 1. IMPROVING THE TECHNICAL INNOVATION SYSTEM
We are committed to building the science and technology innovation platform featured by top- DRIVING NEW GROWTH THROUGH TECHNICAL INNOVATION down alignment and mutual promotion. We increase the investment in important areas of scientific and technological innovation, to win financial support of government. We improve hard power of technology innovation, strengthen introduction, training and development of scientific and technological talents, build dynamic and aggressive teams on scientific and technological innovation, strengthen intellectual property management, and inspire innovation activities to enhance soft power of technological innovation.
1.1 Establishing Technical Innovation Platform We actively promote construction of the scientific and technological platform, to lay a solid foundation for science and technology innovation. By the end of 2014, we had a total of 123 R&D institutes, including 123 28 national ones. AEOLUS TYRE CO., LTD. and By the end of 2014, we had a total of Tianhua Institute of Chemical Machinery &Automation 123 R&D institutes, including Co., Ltd. won the National Innovation Demonstration 28 national ones Enterprise award.
Construction of the Sci-tech platforms
Completed
6 institutions including Guangzhou Research Institute obtained the qualification as one of the third batch of national industrial product quality control and technical evaluation laboratories approved by the Ministry of
Industry and Information Technology. China National Chemical Corporation Sustainability Report 2014 Southwest Research and Design Institute of the Chemical Industry built three platforms for gas purification and conversion test. Nanjing 7425 established the Enterprise Research Institute and founded Nanjing Chemical Testing Center together with Shenyang Rubber Research & Design Institute. Shuguang Rubber Institute and Northwest Research and Design Institute of the Chemical Industry were chosen as the aeronautical rubber research and production center and the test and verification center by the General Armament Department of Air Force. National Drying Technology and Equipment Engineering Technology Center of Tianhua Institute of Chemical Machinery &Automation Co., Ltd. passed acceptance, and two provincial technology research centers passed the site assessment. National Research Center for Carbon Black Material Engineering of Carbon Black Research & Design Institute passed site acceptance and assessment.
Under construction
BlueStar State Key Laboratory for “CFRP” entered the phase of review. ChemChina Agrochemical Corporation implemented the plan for building the ADAMA China Research and Development Center, hired the person in charge of the Center and carried out preliminary construction.
Proposed
The Central Research Institute of China Chemical Science and Technology (CRICC) actively promoted establishment of “technology innovation strategic alliance for fine chemicals catalysis industry”. Analysis and Testing Center of Liming Research Institute of Chemical Industry was approved to establish a municipal-level key laboratory.
29 Case: Nine major development platforms of China BlueStar Group Co., Ltd. China BlueStar Group Co., Ltd., strengthens building technology platforms, steadily improving its scientific research strength. Up to now, China BlueStar Group Co., Ltd. has a total of 4 laboratories and 5 research centers. In 2014, Guangzhou Research Institute and Bluestar Lehigh Engineering Institute were rated as “Industrial (Synthetic Materials Aging) Product Quality Control and Technology Assessment Laboratory” and “Industrial (Chemical Mines) Product Quality Control and Technology Assessment Laboratory” by the Ministry of Industry and Information Technology, which enhanced their soft strength in technology evaluation, testing, project contracting and design concerning “synthesis material aging” and “chemical mine” fields.
4 laboratories 5 research centers
Sci-tech • Industrial (Synthetic Materials Aging) Product • Beijing Carbon Fiber Engineering Research Quality Control and Technology Assessment Center of China National Bluestar (Group) Laboratory of Guangzhou Research Institute Co., Ltd. Innovation • Industrial (Chemical Mines) Product Quality • Shangdong New-type Surfactant Control and Technology Assessment Laboratory Engineering Research Center of Shandong of Bluestar Lehigh Engineering Institute Dongda Chemical Industry Co., Ltd. Platform of • Industrial (Plastic and Chemical New Materials) • Hunan Research Center for Potassium and Product Quality Control and Technology Concomitant Comprehensive Development China BlueStar Assessment Laboratory of China BlueStar Engineering of Changsha Design and Chengrand Research Institute of Chemical Research Institute Industry • Jiangsu Esterificaiton and Hydrogenation Group • Zhejiang Key Laboratory of the Seawater Engineering Research Center of Nanjing Desalination Technology Research of Hangzhou BlueStar New Chemical Materials Co., Ltd. Water Treatment Technology Research Center • Jiangsu Environmental Microbial Agents Engineering Research Center of Bluestar Lehigh Engineering Institute
1.2 Increasing Input in Technical Innovation In 2014, ChemChina invested RMB3.883 billion in scientific research, 741 accounting for 1.62% of business income. ChemChina launched 813 research projects including 168 state key projects, 136 key projects at 741 patents filed, the provincial or municipal level, and 509 enterprise projects. ChemChina including 439 for invention obtained the provincial and ministerial-level research funds of more than RMB257 million.
1.3 Building a R&D Team 743 We strive to establish an introduction and cultivation policy focusing on 743 patents granted, high-level talents such as the Chief Technology Officer and academic including 398 for invention leaders as well as a growth channel for Young and middle-aged scientific and technological personnel in order to promote the scientific and technology innovation power and the core competitiveness of the Company. As of the end of 2014, there were 7,260 R&D personnel throughout the system, among whom, 3 were academicians of Chinese Academy of 20 Engineering, and over 2,630 were senior technical personnel. 20 PCT patents filed, with 3 granted 1.4 Strengthening Intellectual Property Management We steadily implement the intellectual property strategy, and constantly improve the IPR management system, to prevent intellectual property risks. In 2014, ChemChina ranked fifth for the fourth consecutive year 9 among central enterprises in patent ownership. Four patents respectively from China BlueStar Chengrand Research Institute of Chemical Industry, 9 patents and 20 PCT patents applied Changsha Design and Research Institute, Bluestar Lehigh Engineering in America, Japan and Europe, with 4 Institute and Lanzhou BlueStar won the China Excellent Patents award. By and 3 granted respectively the end of 2014, ChemChina had a total of 4,655 patents including 2,885 invention patents, 12 patents applied in America, Japan and Europe, and 10 PCT patents.
30 Typical initiatives DRIVING NEW GROWTH THROUGH TECHNICAL INNOVATION
We completed the Research on Patent Management of Central Enterprises entrusted by the SASAC. The Fifth ChemChina Excellent Patent Selection activity was carried out. Zhonghao Chenguang won the grand prize, 8 projects including that of Northwest Research and Design Institute of the Chemical Industry won the first prize, and Qenos won the special prize.
BlueStar
• Analyzed patent technology strategies and enlarged patent coverage areas; sorted out key industries, attached importance to developing key technical standards and improved patent portfolio. Conducted trace analysis and forewarning of product standard information and prevented risks of standard.
• Changsha Design and Research Institute formulated the Management Measures for Achievements of Institute to standardize reporting and reward of patents and outstanding achievements. Arranged main business patents based on patent analysis with the goal of strengthening core technologies. Haohua
Won nine “Outstanding Patent Awards” of China National Chemical Corporation with four units honored as “Outstanding Units of Patent Management”, and got five national, provincial and municipal China National Tire & Rubber Co., Ltd. honorable titles of intellectual property management. ChemChina • Aeolus Tyre Co., Ltd. won the honorable title of “Demonstration Enterprise for Intellectual Agrochemical Property Application” by Henan province and of Corporation “Advanced Enterprise of Patent Work” by China
National Chemical Corporation”. Achieved the zero China National Chemical Corporation Sustainability Report 2014 breakthrough in foreign-related patents in 2014 and filed 11 patents in Europe, North America and 75% high content ethephon South Korea. As the national superior enterprise aqueous solution of Jiangsu of intellectual property, it was chosen as pioneer Anpon Electrochemical Co., enterprise for establishing the management Ltd. is firstly registered in system of intellectual property. It established China. the management system of intellectual property and integrated elements of intellectual property ChemChina Petrochemical Co., Ltd. protection into the whole value chain so as to realize the systematic management of intellectual property. In addition, it established a personalized patent database to offer technical support for research and • The achievement of “industrial application of heavy oil development. fluid catalytic cracking devices with cold regenerant circulation technology” won the first prize of Science • “Radial tire with filling rubber in carcass” of and Technology Advancement Award from China ChemChina Guilin Tire Co., Ltd. won China Excellent Petroleum and Chemical Industry Federation. Patents award for three continuous years. Guilin Tire is the only enterprise in Guilin that got the prize. It • Daqing Zhonglan Petrochemical Co., Ltd. obtained formulated and implemented intellectual property about RMB 20,000 of Heilongjiang special patent strategies, ensured patent application amount and reward. It held special lectures on intellectual greatly increased the ratio of patent application property and standardized the collection, quality and patent for invention. It became a national arrangement and reporting of patent materials. pilot unit for intellectual property and an intellectual It rewarded valid patents to stimulate technical property demonstration unit in the Guangxi Zhuang personnel’s enthusiasm for and initiative in applying Autonomous Region. for patents. • Nanjing 7425 was identified as one of the first demonstration enterprises of intellectual property in Nanjing. It used the intellectual property to protect core technologies and maintained the leading role in technology. It participated in a series of activities organized by the government for demonstration enterprises, such as various training sessions of intellectual property, university-industry-research cooperation, inline patent exchange and connection, legal protection and so on, so as to build a platform for technology innovation.
31 2. GAINING TECHNOLOGY INNOVATION RESULTS We build a culture of respecting science and technology and encouraging innovation, continuously enrich the technology innovation results, and promote industrialization and conversion of innovation results into real productivity.
2.1 Enriching Technology Innovation Results We continuously improve science and technology innovation platforms and innovation teams, steadily increase investment in scientific and 46 technological innovation, deeply implement the intellectual property ChemChina obtained 46 scientific and strategy, and have achieved lots of scientific and technological innovation results. In 2014, ChemChina obtained 46 scientific and technological technological awards at the provincial awards at the provincial and ministerial level. and ministerial level
Honors (partial)
• The 1.2 MMTA Potassium sulfate packaged technology of Lop Nor Saline Lake Project developed by Changsha Design and Research Institute and Bluestar Lehigh Engineering Institute won the first prize of National Science and Technology Advancement Award. • The integrated technology of Clean-incineration developed by Tianhua Institute of Chemical Machinery &Automation Co., Ltd. won the second prize of National Science and Technology Advancement Award. • The “high-temperature-resistant flanged edge conveyor belt” developed by Qingdao Rubber Six Group Co., Ltd. was awarded the second prize of Shandong province technological invention Award, and the first prize of Qingdao technological invention Award. • The “industrial application of heavy oil fluid catalytic cracking devices with cold regenerant circulation technology” by ChemChina Petrochemical Co., Ltd. and Luoyang Weida Petrochemical Engineering Co. Ltd. won the first prize of Science and Technology Advancement Award by China Petroleum and Chemical Industry Federation. The research on key technologies and standards for safety, energy conservation and environmental protection of high performance tires by North Rubber and Plastics Institute, the research on technologies for CNR synthesis and application by China BlueStar Chengrand Research Institute of Chemical Industry, and the research and application of waterborne nontoxic low smoke expansion-type fire coating materials by Haihua Research Institute won the second prizes of Science and Technology Advancement Award by China Petroleum and Chemical Industry Federation.
Typical initiatives
Elkem of Norway successfully developed a new alloy material for polysilicon that can effectively extend the service life of standard silicon and reduce the light-induced defects of crystalline silicon solar cells. Shenyang Chemical Industry Co., Ltd. developed the PVC paste resin for foaming artificial leather which reaches the domestic advanced level, as well as the PVC paste resin new visbreaking agent, and the new surface modification fumed silica to raise silicone rubber tear strength. China BlueStar Chengrand Research Institute of Chemical Industry developed and applied 2 high performance fiber technologies in projects, breaking the foreign technique blockade. The project of basic research on purification of calcium carbide furnace exhaust gas and extraction and application of highly efficient natural gas launched by Southwest Research and Design Institute of the Chemical Industry under the National 973 Program passed the acceptance by the Foundation Division of the Ministry of Science and Technology. National high-tech marine research projects of Haihua Research Institute including the research on key technologies for ocean engineering corrosion protection and the research on development and application of key technologies for high-performance green and environmental marine paints, passed the mid-term inspection and evaluation. Nanjing 7425 successfully developed and achieved mass production of brake rubber hoses for high speed trains. Hubei Sanonda Co., Ltd. conducted independent research & development and cooperation on glyphosate, paraquat and so on, in terms of environmental protection and improvement of process and preparation, and launched more than 40 research projects. The project of developing technologies for processing 800,000 tons of ethylene in Wuhan per year which was launched by Tianhua Institute of Chemical Machinery &Automation Co., Ltd. and Sinopec Engineering Incorporation (SEI) together will promote comprehensive localization of key large-scale ethylene equipment and improve the equipment localization rate. The aramid fiber solvent desalting technology jointly developed by SINOPEC Yizheng Chemical Fibre Co., Ltd. and Changzhou University realizes the continuity, high efficiency, low energy consumption, high recovery and low pollution of polymerization solvent recovery.
32 Case: Southwest Research and Design DRIVING NEW GROWTH THROUGH TECHNICAL INNOVATION Institute of the Chemical Industry helps China achieve technology localization of the whole industry chain of coal-based natural gas
The “pilot-scale experiment technology Circular of coal-based natural gas methanation” jointly developed by Southwest Research and Design Institute of the Chemical Low-carbon Industry and CNOOC Gas and Power Group Ltd. is an achievement with completely independent intellectual property rights, reaches the world leading level, and realizes industrialization, marking that Green China has mastered all technologies for the whole industry chain of coal- Healthy based natural gas. Industrialization of technological achievements will promote efficient and clean use of coal, and optimization of the energy structure, and ease the coal overcapacity situation. We will increase natural gas supply to help reduce haze, provide technical support for building “a beautiful China”, and promote the green, circular, low-carbon and healthy development of coal chemical Coal chemical industry industry. China National Chemical Corporation Sustainability Report 2014
Case: The methionine project of BlueStar Adisseo (Nanjing) Co., Ltd. fills the domestic gap The products manufactured through the liquid methionine Rhodimet (AT88) production line of BlueStar Adisseo (Nanjing) Co., Ltd. which is China’s first integrated liquid methionine equipment with the world’s largest production capacity, are comparable with the products of the factory in Burgos of Spain. It changed the situation that China fully depended on import of liquid methionine, and promoted the upstream extending of feed industry chain, and the development of feed processing industry and breeding industry.
33 2.2 Facilitating the Application of Technology Innovation Achievements Taking technology innovation strategy as a guide and market demands as the orientation, we speed up the industrialization of technology innovation results.
Typical initiatives Case: Hangzhou Water Treatment Technology Development Center The industrialization of ”technology of making supports the development of seawater natural gas through methanation of coke oven gas” desalination industry in China by Southwest Research and Design Institute of the Chemical Industry is of great significance to energy The project of “research on 12,500 tons/day conservation, emission reduction and energy single integration technology and 100,000 substitution of China’s coking industry. tons/day engineering assembly technology” Labyrinth compressor developed by Tianhua undertaken by Hangzhou Water Treatment Institute of Chemical Machinery &Automation Co., Technology Development Center under the Ltd. is first applied in China’s BOG area, to meet national science and technology support the emergency needs of gas of main urban areas of program of the 12th Five-Year Plan, passed Hangzhou at peak time of winter. acceptance. It independently researched The industrialization demonstration project of and developed a stand-alone device with manufacturing 1 million sets of green fuel-saved the capacity of 12,500 tons/day seawater tires made of solution polymerized styrene- desalination by reverse osmosis, and launched butadiene rubber (SSBR) per year launched by a demonstration project concerning the stand- North Rubber and Plastics Institute and AEOLUS alone device. The technical achievements TYRE CO., LTD. was granted the subsidy fund in this regard promote the development of of RMB9 million by the Ministry of Finance seawater desalination technology in China, for transformation of science and technology are of great significance to large-scale achievements. seawater desalination projects, and pave New utility patent of Shenyang Rubber Research the way for industrialization of domestic and Design Institute – rubber diaphragm product key equipment and large devices. Hangzhou for boron recycling system, supports the grid- Water Treatment Technology Development connected generation of Hongyanhe Nuclear Center has undertaken 8 international Power Station, the first nuclear power station in seawater desalination projects, improving the Northeast China, and ensures Liaoning people can international competitiveness of seawater use economic and clean nuclear power. desalination industry. ”Surface-brightening technology Star-Shining” developed by Nantong Xingchen Synthetic Material Co. Ltd. breaks the technical bottlenecks of beauty 3. PROMOTING TECHNOLOGICAL electric appliance, and can be directly applied as ADVANCEMENT IN THE CHEMICAL INDUSTRY outer parts. Leading the industry through innovation and adhering to the principle of ”mutual benefit, and win-win cooperation”, we make full use of accumulated sci-tech innovation resources, and promote technological progress of the industry together with our peers.
Honors (partial) Case: Chairman (former General Manager) Ren Jianxin of ChemChina • The “key technology of super-critical won the Lifetime Achievement Award for China Cleaning Industry carbon dioxide water-free dyeing and industrialization” developed by In 2014, Chairman Ren Jianxin won the Lifetime Achievement Award by the Industry Guangming Research Institute of Cleaning Association of China. As the pioneer of China’s industrial cleaning industry, Chemical Industry was awarded the Ren Jianxin adheres to the concept of “hard work and business promotion to serve the first prize of Liaoning Province Science country”, and founded China’s first professional cleaning company BlueStar Cleaning Co., and Technology Award. Ltd., marking the start of specialized industrial cleaning services. With further application • The project of Chenguang Research and promotion of cleaning technology, National Chemical Cleaning Technology Research Institute of Chemical Industry about and Promotion Center and National Cleaning Industry Information Center were set up to “developing the industrialization promote industry exchanges. Ren Jianxin helped the industrial cleaning industry form the technology for production of 2,500 tons complete system combining product production, equipment manufacturing, technology of new PTFE dispersed concentrated research & development and technical services, and improve quality and efficiency. solution per year” won the grand prize of Science and Technology Award by the Group.
34 3.1 Carrying Out Exchanges and Cooperation in Science and Technology
We advocate sharing of resources, mutual aid and communication, and DRIVING NEW GROWTH THROUGH TECHNICAL INNOVATION integration of various advantages and resources, to enhance the industry influence and promote the healthy development of the industry.
Typical initiatives
ChemChina compiled a book on the involvement of petrochemical and chemical industries in military services, and a yearbook on science and technology industry of national defense. The large engineering monograph Soda Engineering (third edition) chiefly edited by Dalian Research & Design Institute of Chemical Industry was published, to commemorate Hou Debang, the pioneer of China’s soda industry.
Tips:
Case: Carbon Black Research and Design Institute held the 2014 China China Carbon Black Prospect Summit is the Carbon Black Prospect Summit largest, highest-level and most authoritative China National Chemical Corporation Sustainability Report 2014 Carbon Black Research and Design Institute held the 2014 China Carbon Black Prospect academic meeting for China’s carbon black Summit, exchanged 40 academic papers, and organized many keynote speeches such as industry. So far, 13 sessions have been the Sustainable Development of Green, Low-carbon and Intelligent Achievement Industries. held (one session every two years). It has a Carbon Black Research and Design Institute tries to enhance the influence of China’s carbon significant influence on carbon black circles black industry in the world, and help China’s carbon black industry understand the global of China and the world. China Carbon Black carbon black industry more comprehensively and deeply, particularly the competition situation Prospect Summit was initiated in 1988. and production technology development trend of carbon black industry in the Asia-Pacific Formerly known as the “National Carbon region. In addition, Carbon Black Research and Design Institute helps China’s carbon black Black Technology Seminar”, it was renamed industry in scientific planning and rational distribution, and contributes to China’s marching as China Carbon Black Prospect Summit in from a big carbon black country to a strong carbon black country. 2006 and became international. For more than 20 years, China Carbon Black Prospect Summit has become a communication platform favored by carbon black circles at home and abroad, playing an active role in making China’s carbon black industry go global, improving the influence of China’s carbon black industry on the world, and promoting the development of global carbon black industry. Now it has become comparable to the Carbon Black World and the Carbon Black Perspective in Asia-Pacific.
35 Case: Hangzhou Water Treatment Technology Development Center deepened trade cooperation Hangzhou Water Treatment Technology Development Center initiated the establishment of an industry association, organized exchanges and integrated resources to promote the progress of the industry.
• Established China’s first provincial membrane industry association in conjunction with others. Hangzhou Water Treatment Technology Development Center initiated and united five units including Zhejiang University and BlueStar (Hangzhou) Membrane Industry Co., Ltd. to found the Zhejiang Association of Membrane Industry. Hangzhou Water Treatment Technology Development Center built exchange and promotion platforms for the membrane industry to promote industrial development, and established expert databases, member databases and other library resource libraries to promote resource sharing.
• Co-hosted the Freshwater Industry Forum. Hangzhou Water Treatment Technology Development Center and five other units including National Society of Seawater Desalination and Water Reuse jointly sponsored the Summit Forum for Academicians of the Chinese Academy of Engineering on “Water Environment Protection under Climate Change Background” & Second West Lake International Forum on Seawater Desalination and Water Reuse. At the Forum, they discussed China’s related policies of seawater desalination industry, present status, trend and application of seawater desalination at home and abroad. The Center helps to promote the industry-university- research academic exchange and integration at home and abroad, water resources protection, water reuse, and development of seawater desalination industry.
3.2 Participating in the Formulation of Industry Standard We optimized the industry-university-research cooperation mechanism 140 and constantly improved the industry standard system. The number of In 2014, participated in formulating the technology standards we drafted, participated in formulating and amending throughout this year stands at 140, among which, four were and amending 140 technology international standards, 136 were standards of national and industrial standards level. We participated in five international standard organizations.
36 Honors (partial) Typical initiatives DRIVING NEW GROWTH THROUGH TECHNICAL INNOVATION
• Liu Huichun of Shenyang Rubber China BlueStar Group Co., Ltd. formulated the national standards for methionine products, Research and Design Institute won energy consumption quota and industrial pollutants emission, to enhance industry protection. Long-term Service Award by the Southwest Research and Design Institute of the Chemical Industry participated in formulation of National Technical Committee of national standards for coal-based natural gas, to promote the development of coal-based natural Rubber and Rubber Products. gas industry in China and ensure there are rules and laws to abide by in pipeline transportation, • The research on key technologies mixed transportation and consumption of coal-based natural gas. It also participated in and standards for safety, energy formulation of five national standards including that for pure methane and high-purity methane, conservation and environmental to create a fair competitive environment and build the unified market rules. protection of high performance tires Guangming Research Institute of Chemical Industry revised two national water treatment by North Rubber and Plastics Institute, standards, and participated in compilation of two water treatment industry standards, to regulate and the research on CPE test method and guide the production and evaluation of domestic water treatment industry products. and the revision of industry standard Bluestar Lehigh Engineering Institute drafted the national standard Determination of Lead, HG/T 2704, won the second prize and Arsenic, Mercury in Phosphate Rock and Concentrate, to promote normal circulation of third prize of Science and Technology phosphorus ore and improve the technology system for the chemical ore standardization. Advancement Award respectively Hebei Xinji Chemical Group Co., Ltd. participated in the formulation of the national standard by China Petroleum and Chemical Regulations on Treatment and Disposal of Waste Hydrogen Sulfide, and the industry standards Industry Federation. including the Industrial Strontium Hydroxide Octahydrate and the High-purity Industrial Product Strontium Nitrate, to improve the reputation of high purity inorganic salt industry. China National Chemical Corporation Sustainability Report 2014
37 SETTING A NEW BENCHMARK FOR PRODUCTION SAFETY
ChemChina firmly establishes the “red line” safety production awareness and bottom line thinking, strengthens safety management, strictly conducts safety control, and strives to establish a long-term mechanism for safety production.
0.04% 489 21,090 Mortality per one thousand Spending on occupational Rectified hidden dangers safety RMB489 million 21,090 items
38 1. IMPROVING OUR SAFETY MANAGEMENT SYSTEM
We continued to deepen the SHE management system 1,000 construction, reviewed SHE system documents, and Qenos created a record of zero accident for 1,000 consecutive days revised the SHE Performance Assessment Measures SETTING A NEW BENCHMARK FOR PRODUCTION SAFETY to continuously enhance safety management. and 1 million working hours.
Typical initiatives
We deepened the SHE management system construction, audited and reviewed eight key high-risk enterprises in terms of SHE management system construction, operation and standardization compliance. We improved SHE system files, prepared and revised the SHE checklist, and further decomposed 180 check items of 12 SHE system elements into key check points. We revised the SHE Performance Assessment Measures, adjusted scoring and reward & punishment regulations, strengthened punishment of enterprises suffering deaths in succession, and completed SHE responsibility assessment of persons in charge of specialized companies. Under the guidance of Qenos experts, 12 BlueStar enterprises rectified according to specific weaknesses, making systems run more efficiently. After systematic statistical analysis and study of various accidents of ChemChina in the past 10 years since establishment through information tools and statistical methods, we sorted out cases and formed an assembly for all levels of personnel to learn.
2. SOLIDIFYING OUR FOUNDATION FOR PRODUCTION SAFETY
We continuously strengthen management and China National Chemical Corporation Sustainability Report 2014 supervision over safety production, comprehensively implement the safety production responsibility system, and carry out standardization work to Typical initiatives enhance safety guarantee. In 2014, the whole system invested RMB489 million for production safety. After safety check of 22 key enterprises, we detected 573 hidden 2.1 Safety Hazard Identification dangers and issued 17 rectification We formulated safe production inspection solutions, notices. conducted safety supervision inspections, complete We carried out the activity of safety management measures and comprehensively ”detecting hidden dangers by thousands of team leaders and tens raise the safety management of the enterprise, of thousands of staff”, and analyzed achieving safe and stable operation across the whole accident causes through Lean Six system. Through safe production inspection across Sigma and other tools. the system, we found 22,034 hidden dangers, and rectified 21,090 items, a rate of 95.7%.
Case: China National Tire & Rubber Co., Ltd. strengthens dust hazard management China National Tire & Rubber Co., Ltd. renovated the weakness in the safety management. The company supervised storerooms safety with clear divisions and responsibilities, such as petrol, diesel, chemicals, sulphur, carbon black and other flammable and explosive areas, taking measures of ventilation and dedusting of specific dust atmosphere to avoid dust accumulation and explosion.
39 2.2 Intensifying Emergency Management We continuously strengthen emergency management system construction, 12,000 and enhance the ability to handle accidents through emergency drills. In In 2014, 313 emergency drills 2014, 313 emergency drills were organized across the system, covering were organized across the system, 12,000 personnel. covering 12,000 personnel.
Typical initiatives
Carrying out integrated emergency drills featured by all-staff participation and multi- sectoral alignment. We paid attention to the effect of oil and gas enterprises in dealing with the emergencies including refueling pipeline leakage and oil pipeline leakage, strengthened emergency drills for dangerous chemicals production enterprises to prevent leakage and poisoning. Strengthening cooperation with related parties. Asimco Danchi Components (Sichuan) Co., Ltd. organized heat-treatment workshop and natural gas rescue group to carry out natural gas leakage emergency drills. Haohua Junhua Group Co., Ltd. invited local safety supervision bureau, environmental protection agency and fire brigade to participate in emergency drills for the whole process, and tested the convergence between emergency plan and local government emergency plan. We made cards printed with post site disposal plans for employees to learn and consult, and conducted spot check of employees at any time during safety check, to urge employees to learn the emergency response plan.
Huaxing Petrochemical conducting emergency drill of oil and gas pipeline leakage
Case: Southwest Research and Design Institute of the Chemical Industry organized the fire-control emergency drill Southwest Research and Design Institute of the Chemical Industry organized all the staff to participate in the fire-control emergency drill against security accidents. Comprising fire escape-rescue drill and fire-control skills training, the fire-control drill further strengthened the staff’s safety awareness and effectively enhanced their fire-control skills.
40 2.3 Improving Our Management of Hazardous Chemicals We earnestly supervised hazardous technologies, products and hazard Hazardous sources in key areas to prevent and decrease the occurrence of chemical technologies accidents. Hazardous SETTING A NEW BENCHMARK FOR PRODUCTION SAFETY products
Typical initiatives Hazard sources We strengthened the safety supervision and management over 194 major hazard sources, 50 hazardous chemicals under special supervision of the State Administration of Work Safety and 16 kinds of technologies under special supervision to improve security supervision and management and accident emergency rescue of hazardous chemicals warehouses.
Case: Heilongjiang Haohua Chemical Group Co., Ltd. strengthened the management of hazardous chemicals Heilongjiang Haohua Chemical Group Co., Ltd. earnestly implemented the Regulations on Safety Management of Hazardous Chemicals and strengthened the supervision and inspection by management departments and the vocational training for operation staff; established relevant management system for hazardous chemicals according to processes involving hazardous chemicals; placed poison information cards at poisonous positions, developed the emergency rescue plan for hazardous chemicals accidents and regularly implemented the plan to eliminate the hidden dangers of hazardous chemicals. China National Chemical Corporation Sustainability Report 2014
2.4 Occupational Health and Safety We paid attention to detection of vocational hazards and prevention of occupational diseases, continued to improve the sanitary conditions of the workplaces, as well as the staff’s occupational health and safety.
Case: Sanming Double-Wheel Chemical Machinery gave lectures on industrial injury prevention By holding trainings on industrial injury prevention and analyzing the major reasons for industrial injuries and potential factors of industrial injuries in machinery industry, Sanming Double-Wheel Chemical Machinery enhanced the staff’s awareness of industrial injuries, offered solid assistance to units and departments of all levels to carry out industrial injury prevention, and effectively reduced the occurrence of industrial injuries and occupational diseases.
41 3. FOSTERING A SAFETY CULTURE
Typical initiatives We strengthened education and training for the staff, led them to establish the correct safety concept. Carried out family safety training to promote We analyzed the accident causes with safety culture construction, and created better safety atmosphere. the tools including Lean Six Sigma to improve the staff’s safety awareness 3.1 Conducting Safety Training and their ability to identify hazardous behaviors. We steadfastly established the concept of people orientation and China National BlueStar (Group) Co., safety development, enhanced safety training, and solidly improved Ltd. continued to improve materials the staff’s self-prevention awareness, laying a sound foundation for of safety training and compiled safety production. The whole system organized up to 3,725 trainings on safety training courseware such as Observation of Safety Behavior and special operations, position skills, accident investigations, and laws and Fire Operations. regulations, covering 138,000 people.
Case: Haohua Yuhann Chemical Co., Ltd. proposed innovative education model Haohua Yuhang Chemical Co., Ltd. changed the education model to guarantee the education quality and effect, organized compilation of video courseware of safety training and conducted safety education on shuttle buses. The Company held lectures on cardiopulmonary resuscitation, organized the staff to watch video courses of cardiopulmonary resuscitation, and invited Dean Guo from the staff’s hospital to give explanations on site. The Company held matches of wearing emergency prevention equipment and awarded the staff with excellent performance to arouse the staff’s enthusiasm in learning the above knowledge.
3.2 Building a Safety Culture Taking the safety production month activity as the carrier, we carried out various activities of publicizing safety culture, promoted enterprise safety culture construction, and comprehensively improved the safety consciousness of employees, to realize the transformation of employees’ mind from “I am required to be safe” to “I need to be safe”.
Typical initiatives
Organizing family members of employees to visit the factory, and holding “family affection meetings” to cultivate family safety culture. Carrying out safety activities in teams and groups including publicity of “One Thing, Safety”, and swears to ensure safety. Cangzhou Dahua Group Co., Ltd. won national “Ankang Cup” prizes for four successive years, and Xinghuo Organic Silicone Plant was awarded the title of “National Safety Culture Model Enterprise”. Guilin Rubber Machinery established the “Safety Day Inspection & Report” and “Safety Weekly Report” systems, published inspection and assessment results to the whole factory by mails, and shared safety inspection information, to make all departments pay more attention to safety and strengthen safety inspection.
42 Units Safety Production Month Activities
• Carrying out a series of activities such as safety culture publicity, safety responsibility certificate SETTING A NEW BENCHMARK FOR PRODUCTION SAFETY Dezhou Shihua signature, special lectures on safety, potential safety hazard surveys and governance, case analysis Chemical Co., Ltd. study, safety knowledge questionnaire, specific safety inspection, safety regulations amendment, emergency rescue exercises, etc.
• Comprehensively studying HAZOP analysis reports, accident cases and so on Haohua Yuhang • “Finding Fault” in safety consciousness, job Chemical Co., Ltd. management, facilities maintenance and other aspects post by post, and one by one, to strengthen all employees’ “Red Line” awareness for safety production
• Carrying out extensive publicity and education by means of special display panels, blackboard Zhonghao newspaper, and cable broadcasting televisions Chenguang • Conducting comprehensive emergency drill of “One Post, One Case” for each unit Research Institute • Carrying out series of activities such as warning of Chemical education on safety production accidents, essay Industry and speech contests on safety, “Ankang Cup” safety knowledge contest, “Youth Safety Supervision Posts in Action”, etc. China National Chemical Corporation Sustainability Report 2014
• Holding activities of accident case education, analyzing typical accidents and accident cases, analyzing causes, Heilongjiang summarizing lessons, and exploring rules Haohua Chemical • Strengthening chlor-alkali processes construction Group Co., Ltd. and emergency response capacity construction of PVC device staff to improve the emergency response capacity of frontline teams and groups
• Carrying out safety publicity to all staff by means of Dalian Research & publicity display panels, audio-visual videos, etc. Design Institute of • Carrying out self-examination and self-correction for Chemical Industry potential safety hazards and organizing the study of safety operation regulations by department
43 GREEN AND ENVIRONMENTAL, EXPANDING THE NEW SPACE
We thoroughly implemented basic state policies of resource saving and environmental protection, intensified energy saving and emission reduction, developed circular economy, generalized low carbon techniques, reinforced the capacity of sustainable development, and strove to realize the optimization of comprehensive benefits. 3.7% 102.70 121.68 Comprehensive energy Total volume of effluent COD emissions 121.68 consumption per discharge 102.70 million million tons RMB10,000 output tons reduced 3.7% year-on-year
44 1. IMPROVING OUR ENVIRONMENTAL MANAGEMENT SYSTEM We improved our environmental management system, established a network platform that covered the Group’s three-tier management structure, and built a long-term benchmarking mechanism featured by “comparison with the advanced, gap analysis, continuous improvement and continual surpassing” to optimize our environmental management model.
2. PROMOTING GREEN OPERATIONS GREEN AND ENVIRONMENTAL, EXPANDING THE NEW SPACE We focused on the comprehensive utilization of resources, improved the efficiency of resource utilization from systems, techniques, management and other aspects, increasingly popularized and used new techniques for energy-saving and cost-reducing, and made efforts to build a resource-saving and environment-friendly enterprise.
2.1 Promoting Energy Conservation and Emission Reduction We continued to promote the “zero emission” management, and advanced energy saving and emission reduction further to make the energy consumption per ten thousands Yuan output of the Group reduce 3.7% year-on-year by establishing an energy saving target responsibility and appraisal system with “specific targets, clear responsibility, initiatives in place, upper level controlling and assessing lower level”.
Typical initiatives Case: Tianjin Petrochemical Industry Co., Ltd. got the reward of energy saving from the We strengthened organizational system government once more construction, established the energy saving and emission reduction leading group, Tianjin Petrochemical Industry Co., Ltd. took energy conservation transformation as the motivation of inward development, successively implemented 5 energy saving and formulated the Interim Management
projects, that is, transforming speed controllers of gas compressor, recycling oil China National Chemical Corporation Sustainability Report 2014 Measures of China National Chemical and gas in gas station, remolding transformers and power distribution facilities, and Corporation for Energy Saving and Emission optimizing energy consumption during storage and transportation, and got RMB1 Reduction, and the 12th Five-Year Plan of million energy saving reward from Tianjin people’s government. Thereinto, the ChemChina for Energy Saving and Emission project of transforming speed controllers of gas compressor adopted the new type Reduction. electrical hydraulic speed controller, and saved 16,000 tons of steam annually in contrast with mechanical speed controllers used in the past, achieving remarkable We decomposed and implemented comprehensive benefits. energy saving and emission reduction tasks for 2014, signed the letters of responsibility for achieving energy saving and emission reduction goals, formulated the Benchmarking Regulations for China National Chemical Corporation’s Case: All staff of Haohua Yuhang Chemical Co., Oil Refining Enterprises, and revised Ltd. took actions to promote environmental the Group’s Energy Saving & Emission protection Reduction Performance Assessment Haohua Yuhang Chemical Co., Ltd. carried out the activity of “Meeting Standards Measures, to increase the appraisal of Environmental Protection and Emission Reduction” comprehensively, checked strength and precision of energy saving and sources of pollution from source, actively carried out benchmarking activities emission reduction. according to industry and relevant standards, established the pollution source ledger, formulated emission reduction control measures, constantly improved, and We tracked and supervised the completion strove to realize the goals of energy saving and emission reduction. of energy saving and low carbon targets of 53 enterprises in the Group, and helped Lanzhou Silicon Materials Co., Ltd., Xinghuo Organic Silicone Plant and other enterprises establish measurements, to guarantee the completion of tasks. We strengthened process control and early warning, refined the special appraisal targets of oil refining, synthesis?ammonia and other products, and comprehensively completed annual task targets of the Group in energy saving and emission reduction.
45 2.2 Building a Circular Economy On the principles of “Reduction, Reuse, Recycling” of resource, we transform the development mode and establish an industry chain based on circular economy with low consumption, low discharge and high efficiency.
Case: Reuse rate of purified water in Zhenghe Petrochemical Group Co., Ltd. reached 100% Zhenghe Petrochemical Group Co., Ltd., via the technical transformation of process units, fully introducing the purified water generated by the sour water stripping unit into each process unit to substitute fresh water and demineralized water, achieved 100% reuse of purified water. Every year, 480,000 tons of fresh water and demineralized water can be saved, and more than RMB1 million production cost can be directly saved. Meanwhile, the operation load of sewage works was reduced accordingly and about RMB160,000 operating cost can be saved.
2.3 Advocating Green Office We adhere to the thought of “energy conservation, low carbon” in our daily office activities all the time, actively advocate water saving and power saving, vigorously push forward office automatization, strictly control office expenses, strive to reduce unnecessary expenditures, and gradually form a full set of rules and regulations; meanwhile, we intensify the upgrading of old equipment, generalize the use of new energy-saving technologies and products, strengthen publicity of the green office, and strive to build a green and efficient office environment.
46 3. PROMOTING GREEN SERVICES
We actively promote the transformation and application of new environmental technologies, so as to assist the low-carbon development of chemical industry.
3.1 Researching and Developing Environmental Technology
Taking the green and environmental protection as the goal, we constantly GREEN AND ENVIRONMENTAL, EXPANDING THE NEW SPACE increase the input in technical innovation, laying a solid foundation for the sustainable development of chemical industry.
Case: Tianhua Institute of Chemical Machinery & Automation Co., Ltd. won the second prize of National Science and Technology Advancement Award for its clean-incineration integration technology “Clean-incineration integration technology for sludge-stirring indirect thermal drying and composite circulating fluidized bed”, jointly developed by Tianhua Institute of Chemical Machinery & Automation Co., Ltd., Zhejiang University and TDG Machinery Technology Co., Ltd, etc. won the second prize of National Science and Technology Advancement Award in 2014. Such technology has the advantages of high utilization ratio, low energy consumption, small investment, and easy implementation. It can also realize the sludge reduction, hazard-free treatment, recycling and integrated energy utilization, thus having prominent socioeconomic benefits. China National Chemical Corporation Sustainability Report 2014
Case: Tianjin Petrochemical Industry Co., Ltd. improved manufacturing techniques Tianjin Petrochemical Industry Co., Ltd. successively completed five technical innovation projects including diesel heat transfer and adjustment of catalytic apparatus, optimization of circulating water system, and replacement of feedstock nozzle of catalytic apparatus, which further excavated the reuse resources which can produce waste heat and helped the Company save 7,600 tons of standard coal. Through the methods such as process optimization and the improvement of running quality of catalytic apparatus, carbon dioxide emissions during incineration and flare discharge were reduced.
3.2 Providing Eco-Friendly Products and Services We devote ourselves to providing chemical products and services with low energy consumption and low emission, and share the achievements of green development with interested parties.
Case: Zhonghao Chenguang Research Institute of Chemical Industry launched the special fluororesin Zhonghao Chenguang Research Institute of Chemical Industry launched the special fluororesin with heat stability, chemical resistance and weather fastness. After being processed by downstream enterprises, such fluororesin can be widely used in the exhaust gas emission equipment of steelworks, thermal power plants, waste incineration works and cement plants, effectively reducing the PM 2.5 in the atmosphere.
47 EMPLOYEE GROWTH, CREATING NEW BUSINESS OPPORTUNITIES ChemChina highly values the growth of employees. Regarding the human resources building as the core, optimization of talent structure as the mainline, and intensifying the talent incentive and restraint mechanism as the breakthrough, we devote ourselves to creating a good development environment and condition for the employees, and building a talent team with personnel of excellent quality and reasonable structure.
28% 1,128 100% 28% female employees Hired 1,128 graduates 100% staff membership in 2014 rate of labor union
48 China National Chemical Corporation Sustainability Report 2014 49
EMPLOYEE GROWTH, CREATING NEW BUSINESS OPPORTUNITIES
staff 28% 3.2% Female Ethnic minorities 119,838 Total staff 72% Male to safeguard the legitimate rights and and rights legitimate the safeguard to Labor Contract Law of the People’s Republic Labor Law of the People’s Republic of China Typical initiatives Typical We strengthened the democratic management, and safeguarded We strengthened the democratic management, and safeguarded their own the democratic rights of employees to be the master of affairs. In 2014, the labor union has a 100% staff membership the of meetings 131 holding million, RMB218.5 funds with rate, workers’ conferences, collecting 5,236 opinions and suggestions, with a 91.4% of adoption rate We reinforced the labor contract management and improved the We reinforced the labor contract management and improved signing labor employment mechanism. In 2014, the labor contract rate signing contract collective the and 100%, reached rate reached 100%. the solve to system welfare and salary the optimized We linking payemployees’ worries. In accordance with the principle of the total to performance, we rationally regulated and controlled consumption, position-related the standardized strictly wages, the salary and optimized the salary and welfare system, providing and welfare with local competitiveness for employees.
Paying close attention to the growth, physical and psychological health of female employees, Changyi Paying close attention to the growth, physical and psychological health of female employees, in their Petrochemical Co., Ltd. led the female employees to take the actions of “making achievements with own posts” and “love & support”. It strengthened the organizational building of female employees, elected two teams and groups successively awarded the 38 Red Flag Collective, one female employee advanced as the representative of Municipal People’s Congress, and one female employee rated as the individual of ChemChina Petrochemical Corporation. by Weifang Changyi Petrochemical Co., Ltd. won the title of “Advanced Collective of Female Employees” Federation of Trade Union after the appraisal and selection of best female employees in Weifang. Case: Changyi Petrochemical Co., Ltd. cares for the female employees 1. PROTECTING THE INTERESTS THE 1. PROTECTING OF OUR EMPLOYEES such and regulations laws the with comply strictly We the as the and interests of employees, and build transparent and open interests of employees, to ensure that the employees communication channels, right and choice of right know, to right the enjoy can stable and harmonious a establish to and petition, of no was there year, the Throughout relation. industrial had Company the 2014, In dispute. labor significant employees male 71.8% including employees, 119,838 3,541 had Company the employees; female 28.2% and for 3.2%; the employees from ethnic groups, accounting accounting for overseas employees, had 10,380 Company 2014. 8.7%; the Company hired 1,128 graduates of of China 2. ACHIEVEMENT OF EMPLOYEES’ VALUE
Democratic We adhere to the equal employment system, and set up a democratic, open, competitive and preferential mechanism for talents selection and employment. We pay close attention to employees’ career development Preferential Open appeals, constantly improve the training system, expand the career development path, implement the plan to cultivate talents, and try to promote the vocational development of employees, and accomplish the Competitive value of employees.
m is n 2.1 Diversification Education Training a h ec m We constantly improve the training system, provide the individualized nt me training schemes, and design targeted training contents for employees of loy Emp different levels to improve their vocational ability.
ersonnel t p en m e g a n a al personn c e M i l n
h Successor and leadership
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e
t
l development programs: a n training leadership team members o i s Deputy CHRO at all levels of the company s
e f classes:
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so r ChemChina Central Party
r P training the deputy e p School training courses: d Chief Human le training leading young il Resources Officer k and middle-aged cadres S Deputy CFO classes: Team leader
training the deputy
remote training:
Chief Financial Officer enhancing the skills and management Discipline inspection capacity of grassroots and supervision classes: leaders as a “connecting training cadres on link” in the enterprise discipline inspections and supervision Youth League committee secretary training courses: training the Youth League committee secretary Deputy director of security training courses
Staff Training System
50 China National Chemical Corporation Sustainability Report 2014 51
EMPLOYEE GROWTH, CREATING NEW BUSINESS OPPORTUNITIES ChemChina Guilin Tire Co., Ltd. carried out the post training activities of “masters instructing and mentoring apprentice”; ChemChina Guilin Tire Co., Ltd. carried out the over 100 specialized knowledge trainings for over 2,000 employees. Qingdao Rubber Six Group Co., Ltd. carried out Yellowsea Rubber carried out the special trainings on safety, quality, production, fire control, marketing and enterprise culture; Yellowsea Rubber carried out the special trainings AEOLUS TYRE CO., LTD. held five trainings lectured by senior executives and over 300 people participated in; AEOLUS TYRE CO., LTD. held five trainings lectured Typical initiatives Typical Nanjing 7425 insists on separation of evaluation and appointment, and dynamic dynamic and appointment, and evaluation of separation on insists 7425 Nanjing high-level selected the for system engagement the implements and management, two and doctors three competition, job of means by year, this July In personnel. professional managers acquired their technical and management posts. Relying on the workstation, Zhenghe Petrochemical Group Co., Ltd. gives full play to the theory of senior technicians, and adopts the ways and technicians chief leading role of study, communication and discussion, DCS simulation drills, practical drills, as well as work shift to give play to the leading role of grass-roots talents.
• • 2.2 Optimizing Career Development Opportunities and establish employees, of development career the value highly We for employees, innovate the improve the career development framework conditions for talent training and personnel training mode, create good vocational training, and strive to development, actively push forward the and the Company. realize the common growth of employees • China National Tire & Rubber Co., Ltd. initiated the “from bottom to top” personnel training mode to discover and cultivate China National Tire & Rubber Co., Ltd. initiated youth talents for the first time. • Case: “from bottom to up” mode of China National Tire & Rubber Co., Ltd. to train innovative talents Case: “from bottom to up” mode of China Case: Overall coverage of CTPM/6S in Chenguang Research Institute of Chemical Industry of CTPM/6S in Chenguang Research Case: Overall coverage High the CTPM/6S training for Shanghai Chenguang Research Institute of Chemical Industry held Zhonghao Chenguang realized the and implementation of CTPM/6S scheme Ltd., covering 24 personnel. The formulation Polymer Material Co., improved the of Chemical Industry and vigorously for Zhonghao Chenguang Research Institute overall coverage of CTPM/6S Company. management level of the 3. ENHANCING EMPLOYEES’ WELL-BEING
We enhance corporate culture construction, solve the most direct, desired and beneficial problems for employees in their life and work, share with them the achievements of company development, and improve their living quality and happiness index.
3.1 Creating a Harmonious Corporate Culture We adhere to the core value of “creating value for shareholders and creating employment opportunities for the society”, carry forward the enterprise spirit of “perseverance and harmony in diversity”, and spread the corporate culture of “everybody can do something” to create a harmonious atmosphere.
Typical initiatives
50 excellent chemical employees won “2013 ChemChina Medal”. Two photography works, Partita of Construction Site from Nanjing BlueStar New Chemical Materials Co, Ltd, and Oneiromancy from ChemChina Guilin Tire Co., Ltd. were rated as the excellent works by SASAC in “New State-owned Enterprise in Chinese Dream” Internet video contest. Labor union of Xinghuo Organic Silicone Plant exhibited employees’ works of calligraphy, art, photography and handicraft with the topic of safety, environmental protection and quality. The exhibition works come from retired veteran cadres, front-line employees and their relatives respectively. Changyi Petrochemical Co., Ltd. won the title of “Weifang Advanced Collective of Female Employees”. Nie Renguo, head of Mobile Department of Zhenghe Petrochemical Group Co., Ltd., and Shang Haobin, head of Mobile Department of Huaxing Petrochemical won the title of “National Excellent Workers of Equipment Management”.
Case: BlueStar Silicones France provided “silicone class” for the children of employees BlueStar Silicones France opened a three-day “organosilicon class” to 12 children of employees and invited them to participate in the business negotiation, and visit the laboratories and manufacturing workshops, so as to help them know the different operating posts of chemical industry.
52 China National Chemical Corporation Sustainability Report 2014 53
EMPLOYEE GROWTH, CREATING NEW BUSINESS OPPORTUNITIES Case: Haohua Qingping Phosphorite visited households to assist employees assist to households visited Phosphorite Qingping Haohua Case: employee assistance mechanism that Haohua Qingping Phosphorite established an help employees who are in poverty combines daily and long-term assistance, to extremely their meet and accident, or children, of schooling illness, by caused vast mine areas, employees’ living urgent needs. The consolation activity covered RMB512,700, of fund consolation the with households employees’ and areas evaluation from employees and their benefiting 926 employees and gaining positive family members. Nanjing 7425 Rubber & Plastic Co., Ltd. launched the home-returning activity, activity, home-returning the launched Ltd. Co., Plastic & Rubber 7425 Nanjing employees send to Ltd. Co., Bus Argos Transit Nanjing from coaches renting for the Spring Festival Travel, home for free. In January, the Company prepared about shuttle buses and planned the contacted Nanjing Transit Argos Bus Co., Ltd. and factories by reported and places personnel of the number to according routes and arranged one liaison person departments. The Company set up three routes safety to ensure employees could for every route in charge of getting off and driving return home in time and safely. Case: Project of “Warm Shuttle Bus” launched Case: Project of “Warm 3.2 Care for Our Employees employees, of quality living and working the improving to attention paid We working atmosphere. and created a favorable Employees’ Recreational and Sports Activities
China Haohua ChemChina Chemical Petrochemical Group Co., Co., Ltd. Ltd. (CHC) Activity of gifting Fun games on summer welfare Women’s Day products
Yiyang Rubber ChemChina & Plastics Guilin Tire Machinery Co., Ltd. Group Co, Ltd. Lantern Riddle Participating in on Mid-autumn “Yiyang Dream Day, combining – Large Poem education with Recitation recreation Evening Party”
ChemChina Jiangsu Anpon Zhuzhou R&D Electrochemical Institute for Co., Ltd., Rubber & Plastics Female employees Lectures on participated morality in the public square dancing competition to celebrate Women’s Day
54 China National Chemical Corporation Sustainability Report 2014 55
EMPLOYEE GROWTH, CREATING NEW BUSINESS OPPORTUNITIES The chairman of BlueStar Adisseo, Mr. Gerard The chairman of BlueStar Adisseo, Mr. Gerard Deman (left) was honored with the Friendship Award of the Government of China in 2014 Yang Yong won the “Model Worker of Central Enterprise” Li Ruikang was named the Innovation Model in 2013-2014 National “Ideal & Contribution Competition” Nie Renguo from Zhenghe Petrochemical and Shang Haobin from Huaxing Nie Renguo from Zhenghe Petrochemical Workers of Equipment Management” Petrochemical won “National Excellent “National Advanced Individuals of Retired Cadre”, Li Junxian (academician) Honors of employees (partial) Honors of employees SOCIAL HARMONIES AND SHARING THE NEW ACHIEVEMENT
We always adhere to combining enterprise development with the sustainable development of the business location, share development opportunities and resource values with resource place, promote local economic development, support educational undertakings, organize anti-poverty work in poverty-stricken areas, carry out employee volunteer activities, and jointly develop with all sectors of society to build harmonious social relations.
1,967 36,718 1,967 young volunteers 36,718 hours of volunteer services
56 1. STRATEGIC COOPERATION Typical measures We strived to promote and guide the healthy BlueStar Adisseo (Nanjing) Co., Ltd. development of industry chain, innovating and Fermentalg jointly researched and cooperation model, sharing development developed the new product for animal achievements and achieving mutual benefit, win- nutrition, providing the sustainable solution for the global imbalance win result and mutual development with partners. between supply and demand of protein products. 2. SAFEGUARDING THE RIGHTS Bluestar (Beijing) Chemical Machinery Co., Ltd. signed a contract with NAC AND INTERESTS OF OUR Company of Algeria through CONVE & SUPPLIERS AVE of the US on the project of the 6,000 ton/year skid-mounted electrobath, marking the products’ successfully We insist on the principle of “green purchase, entering into the African market.
improving management, excellent service and Bluestar (Beijing) Chemical Machinery Co., SOCIAL HARMONIES AND SHARING THE NEW ACHIEVEMENT creating value”, guiding suppliers positively to Ltd. and Shenyang University of Chemical Technology signed the Agreement on fulfill social responsibilities and optimizing the the Strategic Alliances of Technological environment of industrial competition. Innovation and Industry-university- research-practice Cooperation and the Agreement on Cooperatively Developing the Technology of Working Condition Simulation for Ionic Exchange Membrane Cell to enhance new product development based on the research on the technology of working condition simulation for ionic exchange membrane cell and improve China’s overall level of chemical equipment.
Unit Measures and effect of supplier management
• Centralized purchase of bulk raw materials such as coal, crude oil, calcium China National Chemical Corporation Sustainability Report 2014 carbide, natural rubber and rolled steel • Optimized logistic structure, increased the proportion of pipeline oil Group transportation and strictly controlled the loss in the transportation of Company import crude oil • Rate of centralized purchase of coal reached 97%, enterprises of centralized purchase of coal reached 20 and purchase quantity reached 2.97 million tons, with the saved cost of RMB35.15 million • EGreatwall platform was actively utilized to realize informatization management of centralized purchase and the on-line strategic material purchase of Bluestar China National • Centralized purchase amount of 7 main raw materials including phenol, BlueStar (Group) acetone and titanium reached RMB1.57 billion with year-on-year growth of Co, Ltd. 110%, with the saved cost of RMB13.5 million • Enterprises and strategic suppliers were organized to achieve centralized purchase of 220,000 tons of material of RMB5.5 billion, saving the cost of RMB746 billion
• Long-term supply contract and spot purchasing contract were combined together; long-term contracts of importing crude oil were signed with Australia, Angela and other countries to ensure the safe and stable supply ChemChina of imported crude oil Petrochemical • 80% crude oil was imported from the oil company in the oil producing Co., Ltd. country • Purchasing management was further improved; post operating instruction, foundation database, letter of credit and relative business files were established or prepared, to strengthen data collation and quantitative analysis
China National • Centralized purchase of bulk raw materials of 380,000 tons at the cost of Tire & Rubber RMB3.6 billion, saving the cost of RMB173 million Co., Ltd. • E-commerce platform for purchasing was established, realizing the on-line purchase of bulk raw materials, with the on-line purchase rate of 78.3%
China National • Adhered to the principle of Purchasing All That We Need, actively promoted Chemical centralized purchasing through Greatwall e-commerce platform, recorded Equipment Corp 44 framework agreements, and purchased the materials of RMB1.5 billion at the group level
57 Case: Zhonghao Chenguang Research Institute of Chemical Industry strictly managed contractors Zhonghao Chenguang Research Institute of Chemical Industry enhanced the safety management of contractors to decrease contractor’s damage rate of operation and ensure health of employees of contractors, and formulated the Requirements on Safety, Health and Environment Management of Contractor (herein after referred to as “Requirements”). Taking the SHE system of Group Company and the safety management system of Qenos as the standard, the Requirements cover 8 major categories and 300 specific items including general safety requirement, requirement of coming in and out, safety training requirement, personal protective device requirement, work permit system, safety requirements of waste treatment and emergency rescue, thus standardizing the management of contractors and their employees’ operations and further laying the foundation for the SHE work of the company.
3. SERVING RURAL DEVELOPMENT
We are devoted to advancing the circulation of agricultural production factors, improving the market system, and strengthening the promotion of products and techniques, to support the increase of food production, farmers’ income and investment.
3.1 Providing High-Quality Agricultural Products As the world’s largest non-patented pesticide producer and the world’s sixth largest pesticide producer and dealer, we positively understood and responded to the demands of customers, popularized modern agricultural planting techniques, and promoted the sustainable and healthy development of agriculture, making contributions to realizing “high-yield, high-quality, high-efficiency, ecological, and safe” modern agriculture.
Our products cover herbicides, pesticides, bactericides, plant growth regulators and other series, as well as more than 120 varieties of original drugs and over 800 preparations. We have registered almost 5,000 products and 6,000 trademarks in 120 countries all over the world. Dichlorvos, pymetrozine and other products ranked first in market share at home.
3.2 Improving Our Agricultural Service System We positively promoted the application of modern agricultural techniques in production, and provided high-tech and environment-friendly agricultural products, helping farmers master modern agricultural planting techniques.
Units Measurements and Effects of“ Agriculture, Farmers and Rural Areas” Service
• Exploited market services, promoted the communication between old and new customers, accelerated innovative development, committed to food security, agricultural products quality safety and eco-environment safety, and facilitated the modern plant protection to serve modern ChemChina agriculture better Agrochemical Co., • Invited experts in China Agricultural University to undertake Ltd. trainings and discussions, launched the agrochemical e-commerce model and technique service system oriented to serving “Agriculture, Farmers and Rural Areas”, and carried on pilot projects of terminal construction oriented to retail shops in Jiangsu, Heilongjiang and other provinces.
• Conducted close cooperation with the consultant team, researchers and orchard workers, developed and ADAMA tested several varieties of formulas, and reduced the application amount and vestigital of fruit thinning agent products for much safer use.
58 4. PROMOTING CULTURAL INTEGRATION
We actively promoted the communication between Chinese and foreign employees, deepened overseas employees’ recognition of corporate culture, encouraged recreational and sports activities in subordinate companies, facilitated the organic integration of Chinese and Western cultures, and strove to be the most popular chemical company in the world.
Case: Dream-Pursuing “Flower & Youth”
On July 20, BlueStar Group ushered in the 25th International Summer Camp. The summer camp themed by “World Dream, BlueStar Dream, My Dream”, had a total of 22 sub-camps around China, and more than 950 little BlueStar campers from over 10 countries started a wonderful summer camp tour, pursuing their dreams here. BlueStar Summer Camp, with the number of campers from over a dozen in 1990 to nearly a thousand now, serves as an important bridge which embodies SOCIAL HARMONIES AND SHARING THE NEW ACHIEVEMENT BlueStar’s culture and links up its foreign and domestic employees.
Promotion of Cultural Integration During the over 20 days, these little campers took part in various activities, such as climbing the Mutianyu Great Wall to experience the heroic spirit of brave men, visiting the science and other kinds of museums, learning to make festive lanterns from Qinhuai Festive Lantern craftsmen, attending military training. The foreign and Chinese campers fully communicated with each other through language and other ways unique to children, which illustrates Climbing the Mutianyu Great Wall Group photo of campers and BlueStar’s cultural essence of “We are Chairman Ren Jianxin Family”. China National Chemical Corporation Sustainability Report 2014
A Gift Presented to BlueStar’s Birthday The year 2014 witnessed the 30th anniversary of BlueStar as well as the 25th anniversary of BlueStar International Summer Camp. The campers in Beijing Sub-camp made special birthday cards with imagination for BlueStar and the summer camp, and made a creative pattern in the shape of “30” and “25” to present a gift for the 30th anniversary A little camper made an A creative pattern for of BlueStar and the 25th anniversary of BlueStar exclusive birthday card BlueStar’s birthday International Summer Camp.
Real-time Sharing of Fresh News “Watching the happy faces of children, I suddenly have an impulse to go back to my school days and take part in BlueStar Summer For the first time, BlueStar set up a specific Camp to pursue my dreams. I, on behalf of all the parents, public account on Wechat, released the sincerely hope that the little campers will happily spend these information of the summer camp in time and unforgettable 20 days and become people with dreams.” interacted with fans so as to let more people know about BlueStar Summer Camp and further understand BlueStar’s culture. ——Guo Huixia, a Wechat netizen
59 5. ENTHUSIASTIC ABOUT PUBLIC WELFARE
We adhered to the concept of being good enterprise citizens, and actively took part in public welfare activities primarily through public welfare donations and volunteer activities.
5.1 Public Welfare Donations We increasingly improve the charitable activity mechanism, to guarantee the openness and transparency of public welfare donations, build a social atmosphere of mutual assistance, and promote the development of social and public welfare cause, and provide the society with love and warmth.
Case: China National BlueStar (Group) Co., Ltd. carried out targeted poverty alleviation in Gulang county China National BlueStar (Group) Co., Ltd. has carried out targeted poverty alleviation in Gulang County for 10 consecutive years. BlueStar carried out poverty alleviation work for “the New Generation of Gulang People”, organized poor students to take part in BlueStar Summer Camp to broaden their horizons; donated two “self- improvement classes”, helping 100 excellent poor students complete their 3-year high school education. BuleStar exploited the industrial advantages to the full, and made full use of local resources to support the construction in Gulang County. For 10 years, BlueStar has invested RMB3.091 million, making contributions to improving local people’s lives.
Case: Hebei Xinji Chemical Group Co., Ltd. helped poor students realize their dreams of going to school Hebei Xinji Chemical Group Co., Ltd. pays attention to poor employee families, striving to help them realize the dream of going to school after understanding their poor situation. The labor union organized 11 children from poor employee families to take part in the activity of issuing golden autumn education grants and bags by the Xinji Federation of Trade Unions, gave out RMB9,500 to 4 poor students, and provided seven middle school and high school students from poor employee families with love schoolbags, the Four Great Classical Novels of Chinese Literature and reference books; also encouraged children to develop good learning habits, and supported them in reading classics and building dreams.
60 5.2 Volunteer Activities
We make full use of our resources, offer volunteer services, reward society with love, and increase social welfare. In 2014, 1,967 young volunteers of the Company provided volunteer services for 36,718 hours.
Case: “Love Mooncakes” of Qingdao Anbang show a harmonious relationship between society and the enterprise
On the eve of Mid-autumn Festival, SOCIAL HARMONIES AND SHARING THE NEW ACHIEVEMENT Qingdao Anbang Youth League Committee carried out the activity of “Offering Love to Communities” in Jihongtan Street in Qingdao. The volunteer group successively came to the geracomium in Xiaya Community and the kindergarten in Nanwan Community, and sent festival blessings to the elderly and children, expressing their care for communities. China National Chemical Corporation Sustainability Report 2014 Case: Changyi Petrochemical Co., Ltd. carried out the helping & supporting activity
Changyi Petrochemical Co., Ltd. seriously implemented the instructive spirit of Changyi Party Committee and Changyi People’s Government, actively fulfilled social responsibility, helped and supported mutually with poor villages in pair, successively helped Xihuabu village finish hardening the 5,000 m main road, and broadened the road to enter the village, providing convenience for villagers; Changyi Petrochemical Co., Ltd. helped village party branch and village committee repair and afforest their offices, built an activity square, and gave them books related to planting, breeding, agricultural techniques, etc.
61 PROSPECTS FOR THE FUTURE
2015 is the beginning year to comprehensively implement the strategy of ruling the country by law, and also the final year to complete the 12th Five-Year Plan. ChemChina will deepen the implementation of the decisions made at the 18th National Congress of the Communist Party of China, the Third and Fourth Plenary Sessions of the 18th CPC Central Committee, take the initiative in adapting to economic “New Normal”, continue to deepen the reform, adjust the structure, seek improvement in stability, achieve innovative development, center on improving quality and effectiveness, and focus on establishing the mature business mode and effective incentive constraint mechanism, to promote the transformation and upgrading of ChemChina to a new height.
Establish mature business modes, and realize the values of customers. We will focus on structural adjustment, actively promote the continuous optimization of structures of the industry, products, techniques, and organizations. We will also grasp market opportunities, balance the speed and quality, adjust the speed without reducing impetus, and increase the quantity with better quality, to promote the reform and development of the enterprise to a new height, and realize its rapid, healthy and sustainable development.
Insist on innovation orientation, and improve efficiency through technology. We will comprehensively study and judge the tendency of science & technology innovation and industry transformation in the world, persist in market orientation and industrialization, confirm the breakthrough of innovation, search for the power source of innovation, and rely on innovation to cultivate the new competitive advantage of ChemChina.
Improve the SHE management system, and enhance the level of security and environmental protection in essence. We will firmly establish the “red line” safety production awareness and bottom line thinking, strengthen safety management, strictly conduct safety supervision, and strive to establish the long-term mechanism for safety production. We will adhere to the concept of “zero emission” and the principles of “total quantity control, and source governance”, enhance the comprehensive treatment and utilization of contaminants, promote circular economy, ensure compliance emissions, and strictly control environmental risks.
62 PROSPECTS FOR THE FUTURE
Establish the incentive constraint mechanism, and build high-quality talent teams. We will be performance-oriented, improve the salary system, set standards of basic remuneration, performance remuneration and tenure incentive remuneration, and implement differentiated remuneration allocation; improve the supervision system, make use of information-based system, establish a constraint mechanism with specific targets and strong operability, pay equal attention to introducing and cultivating, and optimize the talent structure; strengthen the pertinence, planning and diversity of talent training, and improve the professional level of employees at all levels.
Actively assume social responsibility, and establish a good enterprise image. We will strive to win the respect of customers with excellent products and services, actively respond to expectations and appeals of relevant stakeholders to fight for harmonious development space, increase the investment in community construction, and establish a reliable, brave, and responsible enterprise image.
We have a long way to go to realize the sustainable and healthy development. In 2015, ChemChina will comprehensively promote scientific development by improving the quality and efficiency with more positive attitude and aggressive spirit, and make positive contributions to realizing the Chinese Dream – the great rejuvenation of Chinese nation. China National Chemical Corporation Sustainability Report 2014
63 EXPERT COMMENTS
As the pillar and basic industry of national development of chemical industry. ChemChina economy, chemical industry plays an integral role continuously develops and improves the environmental in people’s everyday life, industrial raw materials technologies of green chemical industry, gradually production, and high-tech sector that determines establishes an integrated value chain which changes national destiny. As the largest enterprise wastes into values and pursues clean production and in China’s chemical industry, China National cyclical utilization, and provides the green chemical Chemical Corporation (“ChemChina”) actively products and services so as to contribute to building fulfills its social responsibilities when boosting ecological civilization and a beautiful China. the development of national economy. China National Chemical Corporation Sustainability A better life through scientific innovation: As Report 2014 gives a vivid account of ChemChina’s science and technology makes constant progress, practices and achievements in its performance of chemical industry has enjoyed a closer tie with our the responsibilities for sound operation, scientific everyday life. Now chemicals play a very significant innovation, production safety, environmental role in production and life. ChemChina promotes protection, employee growth and social harmony. the transformation of scientific research, enhances the technological competitiveness, quickens Tangible results in production safety: Chemical the application of innovative results, boosts the industry has been traditionally viewed as one technological progress and strives for the goal of high-risk industry. Since chemical industry “creating a better life, supporting national defense has such unique features as flammability, construction, and promoting industrial upgrading” to explosiveness, toxicity and hazard, and tends to build a colorful, convenient and vigorous world, and a suffer those major accidents with considerable beautiful Chinese Dream”. losses and effects, people usually become jittery at the mention of chemical industry. ChemChina I hope that ChemChina can continuously give its firmly establishes the “red line” safety production advantages into full play, focus much attention on awareness, strengthens safety management, the improvement of people’s livelihood, boost he regulates the safety production conducts, green, healthy and sustainable development of establishes the long-term mechanism for safety chemical industry and strive to grow into the world’s production, carries out the publicity activities leading chemical enterprise with international of safety culture, changes the prejudice against competitiveness. chemical industry through satisfactory safety performance and communicates the positive energy of beautiful chemical industry.
Environmental protection of green chemical industry: ChemChina upholds the “zero emission” management, implements the new Hao Changjiang Environmental Protection Law, and adheres to Vice Chairman of China Petroleum the concept of green chemical industry featured and Chemical Industry Federation by high efficiency, energy conservation and Chairman of China Education environmental protection to lead the green Association of Chemical Industry
64 EXPERT COMMENTS
China National Chemical Corporation social responsibility area from the perspectives of Sustainability Report 2014, featuring in concise good management, technological innovation, safe language, well-organized charts and informative production, green environmental protection, employee contents, demonstrates the company’s new development and social harmony, demonstrating the progress in performing social responsibility and company’s specific practices and achievements to promoting sustainable development. In addition, fulfill social responsibility in areas including safety, the report indicates the company’s commitment environment, economy and society. to serve people’s material life through various kinds of chemicals and utilize high-tech to lead The report’s various patterns of manifestation the industrial development. indicate good readability. The well-organized beginning of the report lays stress on the key The report is highly effective due to its performance data, showing the outstanding focus on the concerns of stakeholders. The achievements in the company’s responsibility report attaches importance to hotspot issues fulfillment; the main body makes the report more vivid and responds to worries and concerns of the and visualized through plenty of cases, in addition, public, which reveals that the company takes pictures and descriptions bring out the best in each the implementation of the new environmental other; the well-organized logic diagrams and various law as an opportunity, constantly promotes types of designs could bring a pleasant reading “zero emission” management, and tackles with experience to readers. the opportunities and challenges of industrial development through green chemical industry. In general, the report presents comprehensive content One the one hand, the company strives to achieve and a clear logic; therefore, it is a relatively high- clean production by developing new technologies level social responsibility report. We expect China to reduce chemical pollution; on the other National Chemical Corporation to continue to improve China National Chemical Corporation Sustainability Report 2014 hand, it promotes environmental technologies its management of CSR and sustainable development, and provides innovative environmental service promote the philosophy of social responsibility to so that chemical industry and chemicals could integrate into the company’s operation in an all-round become the technological sources of pollution manner and make contributions in building a beautiful control as well as effective measures of China and realizing China Dream. resources conservation, which indicates that the company is trying to become the good example of environmental protection among chemical companies.
The report is highly material due to its disclosure of responsibility fulfillment practices in a systematic manner. The report discloses that the company, in an all-round manner, accelerates the transformation of its development pattern, improves its technological competitiveness, lays a solid foundation for safe Yin Gefei production and promotes local development in Vice President of China WTO Tribune
65 GRI INDEX
Note: ● Fully disclosed, Partly disclosed, ○ Not disclosed, N Not applicable
Extent of Where Reported No. GRI Content Index Disclosure (Catalog of Report) Strategy and Analysis 1.1 Statement from the most senior decision-maker of the organization ● P2 1.2 Description of key impacts, risks, and opportunities ● P2 Organizational Profile 2.1 Name of the organization ● P6 2.2 Primary brands, products, and/or services ● P8 2.3 Operational structure of the organization, including main divisions, operating P6/P11 companies, subsidiaries, and joint ventures 2.4 Location of organization’s headquarters ● P6 2.5 Number of countries where the organization operates, and names of countries ● P6 with either major operations or that are specifically relevant to the sustainability issues covered in the report 2.6 Nature of ownership and legal form ● P11 2.7 Markets served (including geographic breakdown, sectors served, and types of ● P6 customers/beneficiaries) 2.8 Scale of the reporting organization ● P6 2.9 Significant changes during the reporting period regarding size, structure, or ● P11 ownership 2.10 Awards received in the reporting period ● P3/P12/P31/P55 Report Parameters 3.1 Reporting period (e.g., fiscal/calendar year) for information provided ● Inside front cover 3.2 Date of most recent previous report (if any) ● Inside front cover 3.3 Reporting cycle (annual, biennial, etc.) ● Inside front cover 3.4 Contact point for questions regarding the report or its contents ● Inside front cover 3.5 Process for defining report content ● Inside front cover 3.6 Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, ● Inside front cover joint ventures, suppliers). See GRI Boundary Protocol for further guidance 3.7 State any specific limitations on the scope or boundary of the report ● Inside front cover 3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced ○ operations, and other entities that can significantly affect comparability from period to period and/or between organizations 3.9 Data measurement techniques and the bases of calculations, including ● Inside front cover assumptions and techniques underlying estimations applied to the compilation of the indicators and other information in the report. 3.10 Explanation of the effect of any re-statements of information provided in earlier ● Inside front cover reports, and the reasons for such re-statement (e.g. mergers/acquisition, change of base years/periods, nature of business, measurement methods) 3.11 Significant changes from previous reporting periods in the scope, boundary, or ● Inside front cover measurement methods applied in the report 3.12 Table identifying the location of the Standard Disclosure in the report ● P65-P68 3.13 Policy and current practice with regard to seeking external assurance for the ○ report. If not included in the assurance report accompanying the sustainability report, explain the scope and basis of any external assurance provided. Also explain the relationship between the reporting organization and the assurance provider(s).
66 Extent of Where Reported No. GRI Content Index Disclosure (Catalog of Report) Governance, Commitments and Engagement 4.1 Governance structure of the organization, including committees under the ● P11 highest governance body responsible for specific tasks, such as setting strategy or organizational oversight 4.2 Indicate whether the Chair of the highest governance body is also an executive ○ officer.( (and, if so, their function within the organization’s management and the reasons for this arrangement). 4.3 For organizations that have a unitary board structure, state the number and ○ gender of members of the highest governance body that are independent and/or non-executive members. 4.4 Mechanisms for shareholders and employees to provide recommendations or ● P11 direction to the highest governance body 4.5 Linkage between compensation for members of the highest governance body, ○ senior managers and executives (including departure arrangements), and the organization’s performance (including social and environmental performance) 4.6 Processes in place for the highest governance body to ensure conflicts of ● P11 interest are avoided 4.7 Process for determining the composition, qualifications and expertise of the ● P11 members of the highest governance body and its committees, including any consideration of gender and other indicators of diversity. 4.8 Internally developed statements of mission or values, codes of conduct, and ● P10 principles relevant to economic, environmental and social performance and the status of their implementation 4.9 Procedures of the highest governance body for overseeing the organization’s ○ identification and management of economic, environmental and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles 4.10 Processes for evaluating the highest governance body’s own performance, ○ particularly with respect to economic, environmental and social performance 4.11 Explanation of whether and how the precautionary approach or principle is ● P10-P11 China National Chemical Corporation Sustainability Report 2014 addressed by the organization 4.12 Externally developed economic, environmental and social charters, principles, or ○ other initiatives to which the organization subscribes or endorses 4.13 Memberships in associations (such as industry associations) and/or national/ ○ international advocacy organizations in which the organization: Has positions in governance bodies; Participates in projects or committees; Provides substantive funding beyond routine membership dues; or Views membership as strategic. 4.14 List of stakeholder groups engaged by the organization ○ 4.15 Basis for identification and selection of stakeholders with whom to engage ○ 4.16 Approaches to stakeholder engagement, including frequency of engagement by ○ type and by stakeholder group 4.17 Key topics and concerns that have been raised through stakeholder engagement, ○ and how the organization has responded to those key topics and concerns, including through its reporting Economic EC1 Direct economic value generated and distributed, including revenues, operating ● P9 costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments EC2 Financial implications and other risks and opportunities for the organization’s ● P45 activities due to climate change EC3 Coverage of the organization’s defined benefit plan obligations ● P49 EC4 Significant financial assistance received from government ● P29 EC5 Range of ratios of standard entry level wage by gender compared to local ● P49 minimum wage at significant locations of operation EC6 Policy, practices, and proportion of spending on locally-based suppliers at ● P57-P58 significant locations of operation EC7 Procedures for local hiring and proportion of senior management hired from the ● P49 local community at significant locations of operation EC8 Development and impact of infrastructure investments and services provided ● P60 primarily for public benefit through commercial, in-kind, or pro bono engagement EC9 Understanding and describing significant indirect economic impacts, including P60 the extent of impacts
67 Extent of Where Reported No. GRI Content Index Disclosure (Catalog of Report) Environmental EN1 Materials used by weight or volume ● P45 EN2 Percentage of materials used that are recycled input materials ● P47 EN3 Direct energy consumption by primary energy source ● P45-P46 EN4 Indirect energy consumption by primary source ● P47 EN5 Energy saved due to conservation and efficiency improvements ● P45 EN6 Initiatives to provide energy-efficient or renewable energy based products and P47 services, and reductions in energy requirements as a result of these initiatives EN7 Initiatives to reduce indirect energy consumption and reductions achieved ● P45 EN8 Total water withdrawal by source ○ EN9 Water sources significantly affected by withdrawal of water ○ EN10 Percentage and total volume of water recycled and reused ○ EN11 Location and size of land owned, leased, managed in, or adjacent to, protected N areas and areas of high biodiversity value outside protected areas EN12 Description of significant impacts of activities, products, and services on ○ biodiversity in protected areas and areas of high biodiversity value outside protected areas EN13 Habitats protected or restored ○ EN14 Strategies, current actions, and future plans for managing impacts on ○ biodiversity EN15 Number of IUCN Red List species and national conservation list species with ○ habitats in areas affected by operations, by level of extinction risk EN16 Total direct and indirect greenhouse gas emissions by weight ● 40 EN17 Other relevant indirect greenhouse gas emissions by weight ● P40 EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved ● P39 EN19 Emissions of ozone-depleting substances by weight ● P40 EN20 NOx, SOx, and other significant air emissions by type and weight ● P40 EN21 Total water discharge by quality and destination ○ EN22 Total weight of waste by type and disposal method ○ EN23 Total number and volume of significant spills ○ EN24 Weight of transported, imported, exported, or treated waste deemed hazardous ○ under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally EN25 Identity, size, protected status, and biodiversity value of water bodies and related ○ habitats significantly affected by the reporting organization’s discharges of water and runoff EN26 Initiatives to mitigate environmental impacts of products and services, and extent ● P47 of impact mitigation EN27 Percentage of products sold and their packaging materials that are reclaimed by ○ category EN28 Monetary value of significant fines and total number of non-monetary sanctions ○ for non-compliance with environmental laws and regulations EN29 Significant environmental impacts of transporting products and other goods and ○ materials used for the organization’s operations, and transporting members of the workforce EN30 Total environmental protection expenditures and investments by type ● P45
68 Extent of Where Reported No. GRI Content Index Disclosure (Catalog of Report) Labor Practices and Decent Work LA1 Total workforce by employment type, employment contract, and region, broken ● P49 down by gender. LA2 Total number and rate of new employee hires and employee turnover by age P49 group, gender, and region LA3 Benefits provided to full-time employees that are not provided to temporary or ○ part-time employees, by significant locations of operation. LA4 Percentage of employees covered by collective bargaining agreements ● P49 LA5 Minimum notice period(s) regarding operational changes, including whether it is P49 specified in collective agreements LA6 Percentage of total workforce represented in formal joint management-worker P42 health and safety committees that help monitor and advise on occupational health and safety programs LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and total P9 number of work-related fatalities by region LA8 Education, training, counseling, prevention, and risk-control programs in place ● P53 to assist workforce members, their families, or community members regarding serious diseases LA9 Health and safety topics covered in formal agreements with trade unions ● P42 LA10 Average hours of training per year per employee by gender, and by employee P50 category LA11 Programs for skills management and lifelong learning that support the continued P50 employability of employees and assist them in managing career endings LA12 Percentage of employees receiving regular performance and career development ○ reviews, by gender. LA13 Composition of governance bodies and breakdown of employees per employee ○ category according to gender, age group, minority group membership, and other indicators of diversity
LA14 Ratio of basic salary and remuneration of women to men by employee category, ○ China National Chemical Corporation Sustainability Report 2014 by significant locations of operation. LA15 Return to work and retention rates after parental leave, by gender. ○ Human Rights HR1 Percentage and total number of significant investment agreements and N contracts that include clauses incorporating human rights concerns, or that have undergone human rights screening. HR2 Percentage of significant suppliers, contractors and other business partners that N have undergone human rights screening, and actions taken. HR3 Total hours of employee training on policies and procedures concerning aspects N of human rights that are relevant to operations, including the percentage of employees trained HR4 Total number of incidents of discrimination and corrective actions taken ● P49 HR5 Operations and significant suppliers identified in which the right to exercise N freedom of association and collective bargaining may be violated or at significant risk, and actions taken to support these rights HR6 Operations and significant suppliers identified as having significant risk for ○ incidents of child labor, and measures taken to contribute to the effective abolition of child labor HR7 Operations and significant suppliers identified as having significant risk for ○ incidents of forced or compulsory labor, and measures to contribute to the elimination of all forms of forced or compulsory labor HR8 Percentage of security personnel trained in the organization’s policies or N procedures concerning aspects of human rights that are relevant to operations HR9 Total number of incidents of violations involving rights of indigenous people and N actions taken HR10 Percentage and total number of operations that have been subject to human N rights reviews and/or impact assessments HR11 Number of grievances related to human rights filed, addressed, and resolved N through formal grievance mechanisms.
69 Extent of Where Reported No. GRI Content Index Disclosure (Catalog of Report) Society SO1 Percentage of operations with implemented local community engagement, ● P57 impact assessments, and development programs. SO2 Percentage and total number of business units analyzed for risks related to ● P21 corruption SO3 Percentage of employees trained in organization’s anti-corruption policies and ● P21 procedures SO4 Actions taken in response to incidents of corruption ● P21 SO5 Public policy positions and participation in public policy development and N lobbying SO6 Total value of financial and in-kind contributions to political parties, politicians, N and related institutions by country SO7 Total number of legal actions for anti-competitive behavior, anti-trust, and ○ monopoly practices and their outcomes SO8 Monetary value of significant fines and total number of non-monetary sanctions ○ for noncompliance with laws and regulations SO9 Operations with significant potential or actual negative impacts on local ○ communities SO10 Prevention and mitigation measures implemented in operations with significant ○ potential or actual negative impacts on local communities Product Responsibility PR1 Life cycle stages in which health and safety impacts of products and services are ● P34-P35 assessed for improvement, and percentage of significant products and services categories subject to such procedures PR2 Total number of incidents of non-compliance with regulations and voluntary ○ codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes PR3 Type of product and service information required by procedures and percentage ● P8 of significant products and services subject to such information requirements PR4 Total number of incidents of non-compliance with regulations and voluntary ○ codes concerning product and service information and labeling, by type of outcomes PR5 Practices related to customer satisfaction, including results of surveys P26 measuring customer satisfaction PR6 Programs for adherence to laws, standards, and voluntary codes related to ● P26 marketing communications, including advertising, promotion, and sponsorship PR7 Total number of incidents of non-compliance with regulations and voluntary ○ codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes PR8 Total number of substantiated complaints regarding breaches of customer ○ privacy and losses of customer data PR9 Monetary value of significant fines for noncompliance with laws and regulations ○ concerning the provision and use of products and services.
70 FEEDBACK FORM
Respected readers,
Thank you for reading this report. This is the fifth sustainability report we have released. To improve our efforts relating to corporate social responsibility and enhance our fulfillment thereof, we hope very much that you could spare some time from your busy schedule to comment on this report and make suggestions to help us improve it.
1. What is your overall evaluation on the ChemChina Sustainability Report 2014? □Very Good □Good □Fair □Not good
2. Do you think this report is a complete reflaction of the work we have undertaken in promoting economic, environmental and social coordination and sustainable development? □Very Good □Good □Fair □Not good
3. What do you think about our work in saving energy and environmental protection? □Very Good □Good □Fair □Not good
4. What do you think about our work in employee care? □Very Good □Good □Fair □Not good
5. What do you think about our work in making social contributions? □Very Good □Good □Fair □Not good
6. Do you think this report has disclosed sufficient data and information? □Very Good □Good □Fair □Not good
7. What do you think about the design of the contents and the layout of this report? □Very Good □Good □Fair □Not good
8. Your are welcome to give your comments and suggestions about the ChemChina Sustainability Report 2014:
You can submit your feedback in any of the following ways: Tel: 0086-10-82677365 Fax: 0086-10-82677088 Mail: Department of Social Responsibility, Office of Production & Operation, China National Chemical Corporation, No. 62 West Road North 4th Ring Road, Haidian District, Beijing 100080