CITIC Resources deeply understands that robust corporate governance is key to enhancing operational efficiency, while sound compliance operations serve as the cornerstone of corporate sustainable development. To this end, the Group actively pursues a level of corporate governance that goes beyond mere regulatory compliance. We strictly adhere to the laws and regulations of the jurisdictions where we operate, as well as the relevant norms of regulatory bodies. Furthermore, we have formulated detailed internal management policies and business codes of conduct to ensure that all operational activities are legal and compliant.
The Group actively adopts policy frameworks and system monitoring measures to fully implement compliance with laws and regulations from the Group level down to
its subsidiaries. This ensures the integrity of business operations while effectively managing risks and seizing opportunities. Furthermore, by implementing diversified
and multi-level corporate governance, the Group continuously strengthens its core business, thereby enhancing its core competitiveness and striving to achieve its sustainable development goals.
The Board of Directors holds ultimate responsibility for maintaining the Group’s risk management and internal control systems and is committed to conducting regular annual reviews to ensure their continued effectiveness. The risk management and internal control system is categorized into five levels:
Responsible for assessing and determining the nature and extent of risks willing to take in achieving the Company's strategic objectives
Responsible for reviewing the Group's risk management
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 executing daily risk management tasks
For detailed information about the Group's corporate governance, please refer to the Corporate Governance Report in the 2025 ESG Report for comprehensive information.
CITIC Resources recognizes the profound importance of corporate sustainability in ensuring long-term robust operations and promoting the harmonious coexistence between the environment and humanity. Accordingly, the Group actively drives economic and social development while upholding the highest ESG standards throughout its operations. Furthermore, members of the Board actively participate in professional ESG training to stay abreast of the latest global trends. Adhering to the principles of sustainable development, the Group has established a comprehensive ESG management framework to ensure the effective implementation of its strategies. The Group's ESG governance structure is illustrated in the chart below:
Effective stakeholder communication is the cornerstone for the Group to balance diversified development and achieve long-term value. CITIC Resources has established normalized communication mechanisms to proactively collect and analyze feedback and expectations from various stakeholders through diversified internal and external channels. Each year, the Group conducts materiality assessments and stakeholder surveys to comprehensively identify and understand the issues that are most critical to stakeholders and business operations.
The Group is dedicated to actively responding to the expectations and suggestions of stakeholders, demonstrating our commitment to sustainable development. In appreciation of the trust and support from our stakeholders, we pledge to translate their opinions into a driving force for management optimization. By addressing various concerns through concrete actions, we ensure that the Group’s development blueprint aligns with social expectations, working hand-in-hand to create sustainable value.
| 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. |
It is crucial to understand the sustainability issues of concern |
To articulate our pursuit of longterm financial returns to major shareholders and report on our sustainability progress.
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Compliance with laws, regulations, and policies directly impacts the Group's businesses. We maintain close contact with government authorities and regulatory bodies to ensure a thorough and accurate understanding of relevant policies and legal requirements. |
The sustainability performance of suppliers and contractors directly affects the Group. While suppliers provide services, materials, and equipment without direct involvement in oilfield operations, their environmental and social performance impacts our operations and reputation. Thus, we maintain communication to ensure their compliant operations. As contractors face the same health and safety risks as our employees at operational sites, they are managed, constrained, and protected by the Group's HSE policies and systems. This ensures the safety of contractor personnel and prevents injuries to themselves or our employees caused by 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 compliance with requirements from various asset management companies and investment institutions. |
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 in its operating locations and continuously strives to enhance localization value. |
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As a key participant in the natural resources industry, CITIC Resources regards sustainable development as a core value and remains committed to green and low-carbon practices. We integrate environmental principles into corporate governance and decision-making at the strategic level, and extend them across the value chain – from oilfield exploration through development and production. In daily operations, we strictly comply with applicable environmental laws and regulations in our operating locations and align with relevant international standards, supported by a robust environmental management system that includes regular risk assessments, pollution prevention and control measures, and emergency response plans.
These efforts not only ensure compliance, but also help safeguard ecological balance and long-term sustainability. To enhance resource efficiency, we apply innovative green and low-carbon technologies wherever practicable and implement a suite of decarbonization action plans to reduce energy and resource consumption and minimize impacts on air, soil, and water. We regularly collect and analyze key performance indicators, adjust our approach in a timely manner, and continue advancing our sustainability objectives – striving to deliver economic value while supporting social progress and environmental stewardship.
As a responsible enterprise, CITIC Resources is deeply aware of its environmental protection responsibilities. We regard environmental stewardship as a core value and integrate it into every aspect of our daily operations. By implementing rigorous and comprehensive environmental management measures, we continuously improve our environmental performance and actively mitigate the impacts of our business activities on the natural environment.
CITIC Resources is acutely aware that energy and water resources are vital to our operations, particularly within our oilfield segment. Given that our oilfields are predominantly located in remote onshore or offshore regions, securing a stable supply of these resources often poses significant challenges. To address this, we continuously drive technological innovation, equipment upgrades, and refined operational management. These efforts enable us to steadily enhance energy and water efficiency, achieving optimized and conservation-oriented resource allocation. By ensuring the stability of resource management in our operating areas, we bolster the Group’s sustainable development.
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 are committed to eliminating spill risks at source by dedicating substantial resources to both prevention planning and execution. Concurrently, we continuously upgrade our emergency response mechanisms to ensure the fastest and most effective intervention in the event of an incident.
CITIC 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.
“An enterprise thrives with people and halts without them.” CITIC Resources regards its employees as valuable assets and a fundamental pillar of business operations. The Group is committed to optimizing human resources policies to create a more competitive working environment and comprehensive compensation and benefits system. To provide a safe and harmonious workplace, the Group regularly organizes employee activities and team-building programs to enhance cohesion across all levels, while also paying close attention to employees ’ mental health.
In addition, the Group places great importance on employees’career development and the enhancement of professional capabilities. A comprehensive and systematic training policy and program have been established to support employees in fully realizing their potential in suitable roles. The Group continues to invest resources in employee development, as improvements in professional skills and work efficiency contribute back to the organization, fostering a virtuous cycle of personal and corporate growth. This approach not only creates a win-win scenario for employees and the Group but also continuously strengthens the Group’s core competitiveness.
Regarding employee rights, the Group regularly reviews and updates its human resources policies to foster a better working environment and safeguard employee interests. We strictly comply with laws and regulations relating to recruitment, remuneration, promotion, termination, working hours, leave, and benefits, and periodically assess our HR policies to ensure regulatory compliance. The Group has developed and implemented an Employee Handbook, which clearly outlines policies on recruitment, remuneration, promotion, termination, benefits, working arrangements during adverse weather, employee code of conduct, business conduct, equal opportunity, other employment policies, and occupational health and safety. These defined employee rights and business standards serve as a reference for subsidiaries and joint ventures to align with local regulations and establish applicable employment policies.
For detailed information about Our Employees, please refer to Our Employees Report in the 2025 ESG Report for comprehensive information.
CITIC Resources has consistently regarded“safety first, prevention-oriented, and comprehensive management” as its core operating principle. In pursuit of the goal of zero accidents, the Group strictly complies with applicable laws and regulations in the jurisdictions where it operates, and is committed to the effective implementation of its HSE management system. The Group continues to strengthen compliance management to ensure that its operational 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 its daily operational management, the Group strictly complies with all applicable laws and regulations relating to intellectual property, quality control, information security, and data privacy and confidentiality. 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 infringement is 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 are incorporated into a unified safety management system to ensure that they comply with the same HSE policies and procedures as internal employees across all operational sites. Through standardised controls and protective mechanisms, the Group seeks to prevent accidents arising from improper operations.
Based on the risk profiles of various emergency scenarios, the Group continuously enhances its prevention and emergency response mechanisms. These efforts are supported by operational guidelines, safety alerts, and dedicated training programmes, with the aim of strengthening onsite personnel's resilience and preparedness in responding to potential hazards.
All operational personnel are required to wear approved personal protective equipment while on oilfield sites. For specific high-risk tasks, the Group reinforces compliance by conducting targeted inspections of PPE and safety gear usage to ensure the protection of personnel.
The Group conducts routine risk assessments and targeted controls for critical facilities. All production equipment is integrated with automated monitoring and security systems to provide real-time oversight of key parameters, including pressure, temperature, liquid levels, safety valves, and gas detection. In the event of abnormal readings or system malfunctions, an immediate warning mechanism is triggered, enabling operators to promptly carry out emergency responses and replace components as needed.
CITIC Resources adheres to the core principle of“coexisting with communities and growing together with society” and integrates social responsibility deeply into its long-term corporate development strategy.
The Group recognises that its oilfield operations are closely linked to local economic development, employment and community well-being. Accordingly, it is committed to implementing localisation strategies for its assets, proactively integrating into local cultures and establishing regular communication mechanisms to accurately respond to community needs. Through sustained investment in infrastructure development, social welfare, and healthcare, as well as the active organisation of various community engagement and charitable activities, the Group seeks to share the fruits of development with stakeholders and achieve mutual benefits for both the Company and society. At the same time, the Group regards compliant operations as the baseline for fulfilling its social responsibilities. It strictly adheres to and keeps pace with updates to applicable laws and regulations in its operating locations, ensuring that all business segments advance community development and sustainable development on a solid foundation of high compliance.
Given that the Yuedong Oilfield is located offshore, and the onshore terminal processing station is located in an industrial zone without nearby communities, and the workforce primarily consists of local residents without cultural integration issues, there are no community-related considerations for the Yuedong Oilfield; in contrast, the Seram block is located on Seram Island in Indonesia, with nearby villages; the Karazhanbas Oilfield is located in the western part of Kazakhstan, which is a large onshore heavy oil field near the coast of Rio, with villages and ports nearby.
