CITlC Resources deeply understands that good corporate governance is key to enhancing operational efficiency, and sound compliance operations are the cornerstone of sustainable corporate development. To this end, the Group actively pursues corporate governance standards beyond regulatory requirements while strictly adhering to the laws, regulations, and relevant regulatory requirements in its operating locations. We have established detailed internal management policies and business codes to ensure legal and compliant operations.
The Group actively adopts policy standards and systematic monitoring measures, implementing comprehensive compliance with laws and regulations from the group to subsidiary levels, ensuring business operation integrity and effective risk management while seizing opportunities. Furthermore, the Group continuously strengthens its core business through implementing diverse and multi-layered corporate govemance, thereby enhancing core competitiveness and striving to achieve sustainable development goals.
The Board assumes full responsibility for maintaining the Group's risk management and internal control systems, and commits to conducting regular annual reviews to ensure effective system operation. The risk management and internal control system consists of five levels:
Responsible for assessing and determining the nature and extent of risks the Company is willing to take in achieving its strategic objectives
Responsible for daily risk management of all departments and subsidiaries of the Company
Responsible for supervising, monitoring, and centralizing the Group's risk management
Responsible for reviewing the Group's risk management
Responsible for executing daily risk management tasks
For detailed information about the Group's corporate governance, please refer to the Corporate Governance Report in the 2024 Annual Report for comprehensive information.
CITlC Resources recognizes the crucial importance of corporate sustainability in ensuring long-term stable operations and promoting harmonious coexistence between the environment and humanity. Accordingly, the Group actively promotes economic and social development while adhering to the highest ESG standards in its operations. Concurrently, members of the Board engage in E$G-related professional training to stay abreast of the latest ESG developments and context.
The Group has established a comprehensive E$G management framework in accordance with sustainability principles to drive effective implementation of sustainability strategies. The Croup's E$G governance structure is detailed in the diagram below.Hong Kong Headquarters：
CITIC Resources is committed to maintaining active communication with stakeholders, deeply understanding their views and expectations to safeguard the Group's stable development and effectively implement sustainability strategies. We continuously engage in dialogue with stakeholders who influence the Group's strategy, including non-governmental organizations, media organizations, and industry associations, to understand various parties ESG concerns and expectations. Through stakeholder communication and consultation, the Group can more actively contribute to sustainable social development while fulfilling its responsibilities to various sectors of society.
Below are the communication channels, purposes, and expectations of key stakeholders with CITlC Resources.subsidiaries and joint ventures.
| Stakeholder Groups | Customers | Employees | Shareholders/ Investors | Government & Regulators | Suppliers & Contractors | Business Partners | Industry Peers | Potential Investors & Financial Institutions | Communities & Public |
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| Communication Purpose | To maintain long-term relationships by understanding shared sustainable development values to ensure products and services meet expectations. |
Understanding employee concession sustainable development issues, especially labor and occupational safety matters. |
Explain Group's commitment to long-term financial returns and sustainable development reporting, and address investor sustainability concerns. |
Maintain close contact to ensure thorough understanding of relevant policies and regulations. |
The suppliers' and contractors' sustainability performance directly impacts the Group's performance. Suppliers are only involved in providing services, materials, and equipment, without participating in direct oilfield operations of the Group. However, suppliers' environmental and social performance affects the Group's operations and reputation, thus the Group must maintain communication with suppliers to ensure their compliant operations. Since contractors face the same health and safety risks as Group employees when working at various operation sites, contractors must accept management, constraints, and protection under the Group's HSE policies and systems to ensure contractor personnel safety and prevent injuries to themselves and Group employees due to improper operations. |
The Group is committed to maintaining positive cooperative relationships with all partners, actively engaging in ongoing communication to understand shared sustainable development values and facilitate project implementation and execution. |
By maintaining connections with industry peers, the Group can more accurately grasp sustainable development trends and respond quickly. |
Since the Group may need to seek external funding during operations, it must ensure |
The Group must actively maintain closeties with communities where it operates to ensure its business brings social benefits to these communities. The Group respects local elements such as culture and beliefs inits operating locations and continuously strives to enhance localization value. |
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As a member of the natural resources industry, ClTlC Resources deeply implements green and low-carbon concepts, integrating them into every aspect from oilfield exploration to development and production. We strictly comply with local environmental protection laws and regulations and have established comprehensive environmental management systems to ensure sustainable environmental development. Through the adoption of innovative green and low-carbon technologies and the implementation of carbon reduction programs, we are committed to improving resource utlization eficiency, reducing energy and resource consumption, and minimizing impacts on air, soil, and water resources. We continuously track and evaluate environmental performance indicators to ensure the achievement of various sustainable develcoment goals, contributing to the harmonious development of the economy, socity and environment.
CITIC Resources fully understands the environmental impact of its business operations and is committed to incorporating environmental protection concepts into daily operations. Through comprehensive environmental management measures, we continuously work to reduce negative impacts on the surrounding environment.
CITIC Resources fully understands the importance of energy and water resources to the Group. Since oilfields are often located in remote or offshore areas, the supply of energy and water resources is one of the operational challenges. In addition to ensuring a stable supply, we continue to enhance the efficiency of energy and water resources utilization through technological innovations, equipment upgrades, and the strengthening of precise management in production operations.
CITIC Resources recognizes that oil spills can have significant impacts on both the ecological environment and socio-economic conditions, while also endangering employee and community safety. To address this, we invest substantial resources in planning and implementing oil spill prevention measures, while also enhancing the effectiveness and responsiveness of emergency response mechanisms.
CITlC Resources is highly attentive to the impacts and opportunities that climate change brings to the Group's business operations, and actively keeps track of the industry's development of low-carbon technologies and energy-saving devices. We aim to continually enhance our capability to respond and address climate change issues and to strive to reduce greenhouse gas emissions.
CITIC Resources deeply understands the importance of talented individuals to the sustainable development of the Company. Adhering to the principle of "a company thrives with people and falters without them", we regard employees as valuable assets and wealth. The Group is committed to continuously optimizing human resource policies to create amore competitive working environment and remuneration system. To ensure a safe and harmonious workplace, the Group regularly organizes employee activities and team-building events to foster cohesion among employees at all levels, while also paying attention to their mental well-being. In addition, the Group places great emphasis on employees' career development and the enhancement of professional skills. Comprehensive training policies and programs are in place to help employees realize their potential in suitable positions, achieving a win-win situation for both individuals and the Company.
The Group firmly believes that by investing in its employees, the professional skills and efficiency of employees will benefit the Company, to continuously enhance the core competitiveness of the Company.
In terms of employees' rights and interests, the Group regularly reviews and updates its human resources policies to strive for a better working environment and rights. We strictly comply with laws and regulations on recruitment, compensation, promotion, termination, working hours, holidays, benefits, etc., and regularly review and ensure the tour human resources policies comply with regulatory requirements. The Group has formulated and implemented systems such as the "CITlC Resources Hong Kong Office Employee Handbook (2024)", the "Employee Turnover Management System of ClTlC Resources Headquarters", the "Employee Care Plan" and the "Employee Rental Tax Deduction and Exemption Plan", which clarify the recruitment, remuneration, promotion, termination, benefits, bad weather working arrangement, employee codes, business codes, equal opportunity policies other employment policies, and occupational safety and health policies. These clear right of the employees, while the codes of practice provide a reference for subsidiaries and joint ventures to incorporate local regulations and develop a set of applicable employment policies.
For detailed information about the Group's corporate governance, please refer to the Corporate Governance Report in the 2024 Annual Report for comprehensive information.
CITIC Resources regards employee safety and health as the cornerstone of its operations and is committed to implementing the HSE management system, continuously enhancing safety awareness, and striving for the ultimate goal of zero accidents. The Group fully complies with the laws and regulations of its operational locations and strengthens compliance management through the formulation of relevant policies to ensure that safety standards exceed regulatory requirements.
In terms of integrity practices, the Group adheres to the concept of honesty and holds the highest ethical standards of conduct for the Company, employees and partners in accordance with market practices. The Group's internal code of conduct requires employees to strictly follow the Company's policies in the conduct of business activities to ensure fair competition and compliant operations. On the supplier side, we are committed to enhancing supply chain management, strengthening risk identification and response capabilities within the supply chain. By building a robust supply chain management system, we aim to establish sustainable partnerships with our suppliers.
In terms of dally operation and management, the Group attaches great importance to intellectual properly rights, quality control, information security and privacy, and abides by relevant laws and regulations. The Group will review existing intellectual property rights from time to time to protect the intellectual property rights of our own and others. If any infringements discovered, we will seek legal opinions. When selling and transporting crude oil products, the relevant parties are required to sign confidentiality agreements to ensure the security of confidential data or information. We respect the data and privacy of the parties concerned and strictly prohibit the disclosure of relevant data and information to any third party unless the written consent of both parties is obtained. The Group's subsidiaries will directly supervise matters relating to consumer data protection, information security and the implementation of confidentiality policies. Relevant policies and procedures will be reviewed and updated if necessary. If any incident related to consumer data protection and information security is identified the respective subsidiaries will conduct an investigation. They will then determine whether updates to policies and procedures are necessary to prevent the recurrence of such issues.
Contractors at all operational sites face the same health and safety risks as the Group's employees. Therefore, they are required to comply with the Group's HSE policies and systems and are subject to the same management, regulations, and protections to prevent accidents caused by improper operations.
In response to emergencies in oilfields, the Group also continuously improves emergency management and prevention mechanisms in consideration of the types of emergencies that may occur, and enhances employees' and contractors' capacities of response for potential hazards in workplaces by giving work instructions, warning instructions and training on specific safety topics.
The Group requires employees and other on-site employee to wear qualified personal protective equipment. Especially when specific high-risk works are engaged, the employees and other on-site employees must wear designated labor protective gear and safety equipment to protect their personal safety.
To promptly identify hazards and implement control measures, the Group continuously conducts key management and risk assessments on critical equipment and facilities. All production equipment is equipped with necessary security and detection systems. If there is a malfunction in the pressure, temperature, liquid level, safety valve, fire, or gas detection systems, the system will issue an immediate alert, notifying operators to pay attention to safety and replace the faulty components.
As a socially responsible company, CITlC Resources understands that the sustainable development of the enterprise relies on community support. Therefore, we adhere to the principle of developing together with the community, investing resources in community building to achieve mutual benefits.
The Group is well aware of the significant impact of oilfield operations on the local economy, employment, and community development. As such, we actively integrate into the local community and culture, listen to and respond to the needs of local communities, and increase resource investments in infrastructure, social welfare, and healthcare. We organize social welfare activities and are committed to sharing the Company's development achievements with the community.
To consistently fulfil its corporate social responsibility, the Group strictly complies with relevant laws and regulations in its operational areas, keeping a close eye on updates to ensure compliance in all business operations.
