Health

Sinopec Corp. attaches great importance to its employees' health and guides all its subsidiaries to conduct occupational health work in conformity with the Law of the People's Republic of China on the Prevention and Control of Occupational Diseases as well as the Regulations on Occupational Health of Sinopec Corp. All its branch companies and affiliates have established occupational health administrations and service organizations. In 2007, complying with the Law on the Prevention and Control of Occupational Diseases, the Company comprehensively implemented the HSE management system, adhered to the principle of "people as top priority". Site detection and monitor for potential hazardous materials exposure were intensified; tremendous efforts have been made towards occupational disease analysis, public health monitoring and occupational health supervision. There were only 56 out of 16000 enterprises being entitled "National Occupational Health Showcase Enterprises" by the Ministry of Public Health, State Ministry of Work Safety and All China Federation of Trade Unions. This glorious title went to 7 subsidiaries under Sinopec, which is spoken highly by Ministry of Public Health, State Ministry of Work Safety. The Company is making every effort to improve working conditions, guarantee employees' health, create harmony in petrochemical industry and implement sustainable development.

In 2008, Sinopec Corp. will earnestly implement the Law on the Prevention and Control of Occupational Diseases, comply with the principle of "putting people first", enforce monitoring supervision and provide relevant technical services. The Company will also endeavor to strictly carry out "ten prohibitions", improve labor protection conditions, raise employees' health awareness and boost harmonious and sustainable development of petrochemical industry.

Safety

Safe production is Sinopec's top priority. Implementing the policy of "Safety First, Prevention Foremost, All Involvement and Comprehensive Control" as well as upholding the principle focusing on all stuff involvement, whole process, all positions and around the clock, Sinopec practices an integrated health, safety and environmental protection (HSE) management. The Company's HSE objectives are to seek zero incidents, no harm to health or deterioration of environment, so as to achieve world-class HSE performance". All subsidiaries execute total HSE management system according to the Company's guidance; make every effort to ensure sufficient deployment of personnel, funds and facilities to set up an effective mechanism, thus achieving stable and safe operations.

Sinopec Corp. has a sound safety management system. HSE Department in the headquarters is responsible for safety supervision and management. All business units and management divisions have HSE management organizations or positions. HSE branches have been established in every production subsidiary and all major facilities have designated safety engineers. The Company has also formulated a responsibility system of safe production which is strictly implemented and examined.

The Company has set up a comprehensive set of safety regulations which has been continuously improved so that each position has its rules to follow. For operation sites with high risks, a work permit system and safety identification system have been set up. A safety inspection network has been established and different levels of general and specific safety inspections have been conscientiously carried out. National safety pre-assessment mechanism is strictly followed: engineering, construction and operation of safety facilities, fire-fighting facilities and occupational health devices are required to be established in parallel with the key processing facilities for all grass-root, revamping and expansion projects.

Sinopec Corp. makes every effort to manage hidden perils and to create a safe production environment. The Company conducts risk evaluation to eliminate hidden safety perils from existing plants, facilities and utilities. In 2007, the Company invested RMB 2.27 billion in 1100 projects to tackle hidden perils, which guaranteed safe operation.

The Company strengthens safety monitoring on key production facilities and vital units. Owing to the tailor-made major accident prevention measures and emergency response plans at various levels, together with emergency response drill, the Company's emergency handling capability has been further improved.

The Company's overall safety guidelines for 2008 is to adopt the scientific outlook for development, uphold the principle of "Safety First, Prevention Foremost, Comprehensive Management and People First". Efforts shall be made to improve regulation and accountability system and to lay a solid foundation for safe production. Furthermore, the Company will enhance HSE management in an all-round way to achieve an even better HSE performance.

Environmental Protection

Sinopec Corp. is dedicated to operate in strict compliance with national laws, rules and regulations, standards and policies, practicing a sustainable growth strategy and pursuing coordinated economic and ecological development to deliver our promises to the public. Upholding the principle of "Prevention Foremost, People First", the Company commits itself to enforcing HSE management system and conducting clean production in a broad and extensive manner. In order to fulfill its corporate social responsibilities, the Company provides safe and environment-friendly products with premium quality and sets up a good corporate image.

In 2007, Sinopec Corp. further pushes ahead the environmental protection management. Environmental protection responsibilities at different levels were clearly defined in line with the environmental protection highlights in HSE management system. Qualification training programs for HSE managerial staff at all subsidiaries were intensified. The Company continued to carry out specific management on environmental protection and monitoring in new projects. Thus, major pollution sources have been effectively controlled. The overall pollution prevention and control level was improved. While the Company achieved a significant growth in upstream E&P, maintained high utilization rate in refineries, total pollutant emission has been decreasing, with the total volume of pollutants in discharged waste water reduced by 5.4%.

Sinopec Corp. continues to implement clean production in an active manner. The Company further improved clean production standard, implemented internal charging system for waste emission, and adopted clean production technologies. Thus, the Company is able to minimize the waste emission.

Sinopec Corp. incorporated the concept of circular economy into production and promoted energy conservation, consumption reduction, water-saving and pollution-minimizing technologies throughout the whole process of production and operation. Comprehensive utilization of "three wastes" was actively implemented to enhance resource utilization efficiency. Through the application of water conservation and discharge reduction technologies, the Company strengthened management on the use of industry water, intensified checks on water consumption, and emphasized water reuse and multi-uses. While the plant utilization rate increased significantly, the Company's industry fresh water consumption dropped by 4.3% year on year.

Sinopec Corp. attaches great importance to water pollution control. All subsidiaries are required to amend, supplement and standardize the emergency plans of water pollution control with emergency plan drills, equip themselves with materials for emergency use. The subsidiaries' ability of dealing with emergency has been further improved.

During the last three years in the "Eleventh Five-year Period" , Sinopec Corp. will conscientiously implement the national guidelines of the economic development plans, promote clean production in an all-round way, strengthen pollution control and develop circular economy to become a resource-efficient and environment-friendly company.