CNPC report shoulders corporate social responsibility

PUBLISHED : Friday, 02 March, 2007, 12:00am
UPDATED : Thursday, 11 June, 2015, 4:57pm

Group the latest mainland state company to issue such data separately from annual financial accounts

China National Petroleum Corp, the nation's largest oil producer, yesterday released its first corporate social responsibility report as it seeks to measure up to international corporate practices.

CNPC, the parent firm of listed PetroChina, in the 69-page report detailed accomplishments in workplace safety, environment protection, greenhouse gas reduction, clean energy development and social welfare contribution, both in the mainland and abroad.

'It is a big deal,' said Sophie Leclue, an associate director at Asria, a Hong Kong-based organisation promoting corporate responsibility and sustainable investment practice in the Asia Pacific.

CNPC is the latest state firm to issue such reports separately from annual financial reports to highlight achievements in sustainable development and social welfare contributions.

Ms Leclue said Hong Kong firms, such as Swire Pacific, began issuing such reports about a decade ago, following a trend begun in the west.

The CNPC report comes after two high-profile accidents - a gas blast that killed 243 people in late 2003 in Chongqing and an explosion two years later at the company's petrochemical plant in Jilin province that killed eight and contaminated the fresh water supply for millions of people, including many in Russia.

Mainland firms, which are just starting to produce social responsibility reports, face criticism from abroad that they ignore human rights abuses in emerging markets.

CNPC and China Petrochemical Corp, the parent of listed Sinopec Corp, have been accused by some of indirectly supporting genocide in Sudan. Militia attacks in that country are widely believed to be funded by the government there.

According to officials at mainland oil firms involved in compiling social responsibility reports, three other state companies have issued similar documents separately from their annual reports, but this was not widely reported. The three firms are Baosteel Group, State Grid Corp of China and CNOOC's parent, China National Offshore Oil Corp.

PetroChina's spokesman said the company would issue its first social responsibility report this year. Its latest annual report has not included health, environment and social responsibility information.

CNOOC's report spared four pages on such topics, compared with one in Sinopec's.

A Sinopec spokesman said there was no plan to publish separate social responsibility reports.

A CNPC spokesman said it would publish its corporate social responsibility report annually and would join 'at the right time' the United Nations Global Compact, which works to advance human rights, labour, environment and anti-corruption initiatives, China Business Times reported.

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