Sinopec’s impact on the sustainable and environment-friendly development

8 August 2016

Nowadays, it is commonly recognized that human has destroyed natural environment with the human society and urbanization’s development. As the environment much more concerned by society and climate change influencing people’s daily life, Sinopec recognized that develop a sustainable and environment-friendly production could bring long-term benefits and satisfied society. As a worldwide energy and petrochemical company, Sinopec pay large attention to the environment protection (Green and Low-Carbon Growth 2011).

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However, the high toxic plants (Three Petroleum Plants Closed 2012) and water (China Intensifies Efforts to Combat Water Pollution 2007) pollution problems caused by Sinopec, posed high environmental risk. These problems affected the public health and destroyed ecological system. As a result, the negative performance may damage the environment as well as company’s profit losing. This essay analyses both negative and positive performances of Sinopec on corporate environmental responsibility, including high toxic pollution explosion and Green and low-carbon growth program as well as the impact on society and stakeholders.

The negative performance of Sinopec The issue of corporate environmental responsibility has grown with increasing severely environmental pollutions during recent years. Petrochemical giant Sinopec has suspended production at subsidiaries in Guangdong after the environmental pollution breaches exposed on state TV. Based on the CCTV report, it is known by society that no on supervised the company and required to correct their mistakes even it was obverse that their pollution were out of legal range in China.

The company continue bullying relevant organizations and local governments, claiming their operations are essential for the national economic growth and society regardless the livelihood of citizens (Three Petroleum Plants Closed 2012). Based on the CCTV report that a subsidiary of Sinopec dumped poison sewage in rainwater drains with improper method. The plant was also set up to have resumed operation without accept after being asked to close in May because failing to settle down citizens. Another subsidiary illegally kept a great amount of liquid into two tanks that designed for emergency use only (Li, Jing 2012).“And Xinzhongmei Chemical Industrial, a joint venture in Zhanjiang partially controlled by Sinopec, tried to dilute its waste with tap water before dumping it. CCTV reported that Mo Zhi, the company’s general manager, described the pungent odour from drainage pipes as “cooking smells” in an attempt to cover up the illegal handling of the waste. ” (Three Petroleum Plants Closed 2012). Greenpeace China campaigner Ma Tianjie claimed that it is seriously irresponsible for Sinopec because of the highly toxic waste.

In these years, the projects of Sinopec have became opposite from local people so that environmentalists thought the state TV expose the truth to the society based on reliable evidence (Li, Jing 2012). Recently, the Sinopec engineering said the demand of coal-to-chemical projects grow fast and support by the local government in spite of carbon emission and scarcity concerns of limited resources. Because of the contracts with government, the outstanding orders are growing fast (Eric Ng 2013).

Coal take 80% of Chinese energy use, which is a big factor significant contributing the air quality in China. However, another essential part is low-grade fuel burned by Cars and trucks in China. Because of the cleaning cost growth, the earning of Sinopec is reduced to some extent (Orlik, Tom 2013). It can be seem through the examples above that environmental pollution not only causing people suffered unprecedented physical hurt but also reduce the benefits of Sinopec, the most essential problem is it unavoidable lead to ecosystem out of balance.

The positive performances of Sinopec On the other hand, Sinopec has contributed on develop sustainable and environment-friendly production. In 2011, Sinopec give signature responsibility contract of reducing pollution and no charge target with local government, and set up the 12th Five-Year Plan for the environmental protecting activity of Sinopec, which disposes main environment-related task in long-term developing. At the same time, Sinopec keep improve regulations of protecting environment and carried out EIA seriously.

They also made great efforts in advertising green growth and resource efficiency. For instance, comparing industrial effluent discharge with last year, “this year decreased by 8. 7%, on-spec rate of discharged waste water grew by 0. 4%, and COD discharge went down by 16. 9%. SO2, NOx and NHx emissions reduced by 9. 8%, 3. 4% and 34. 9% respectively” (Green Operation 2011). What is different is that Sinopec improve the treatment of waste gas, waste water and industrial residue (Three wasters), try best to reach the standards and minimize the impact to the environment.

Furthermore, Sinopec found process, equipment and invite expert groups to protect environment, define problems and resolve. There is a new program of expend recycle economy and turning waste to worth in order to consuming less energy and high efficiency. Also, Sinopec put great effort on eco-environment restoration around abandoned area and along the pipelines so that they can minimize the impact on environment (Green Operation 2011). Climate change is a heat issue for all human beings over the world. It is commonly accepted that people’s lifestyle changed as the climate change.

Therefore, most companies have changed and proved products and service in order to fulfill the scarcity of customers. So does Sinopec. The company pays attention to “shift the stage of growth, optimized energy structure, utilize low-carbon energy resource”. For example, Sinopec focus on commercial test of CO2 recovering, to reduce GHG and prepare well for the climate change (Fight against climate change 2011). Sinopec continued “efforts in industrial restructuring and integrating production capacities and operations”. Expansion of resources reduced significantly and produced less CO2.

From 2006 to 2011, the average capacity increased by 25. 7%, while that of ethylene facilities reduced by 13. 2% (Fight against climate change 2011). Experienced several years, the capacity of production still increasing, Sinopec reached great grates in reducing energy and decreasing consumption to enhance administration, develop different techniques, facilities and unique process of producing. Refining and ethylene intensive energy of production, reduced separately by 2. 0% and 4. 3%. We cut 540000 tones coal equivalent that as same as reducing 1.33 million tons CO2 or planting 12 million trees (Green and Low-Carbon Growth 2011). E-power service station. We tend to set up “refilling and recharging service networks in 13 provinces and cities for both regular autos and electric autos. ” By now, we have successfully built up two stations of recharging in the city of Beijing and Shenzhen, and six refilling and recharging demo stations in Shanghai and Anhui (Green and Low-Carbon Growth 2011). There is a unique lifestyle called “Low-Carbon Lifestyle”, which is the major way for Sinopec to improve capacity and living level for employees.

For building a “green” company, they motivate staff to take part in various campaign and activities, such as planting trees, watching environmental relevant movie and so on, in order to increasing the awareness of environment-friendly and low carbon lifestyle. By using this method, Sinopec spread the Low-Carbon Lifestyle to the consumers, employees, suppliers and other group of stakeholder. Raising the awareness of social duty and protect the environment (Fight against climate change 2011). Conclusion As an international petrochemical and energy company, Sinopec has a big social responsibility and influence power.

After weigh up negative and positive performance of Sinopec, it can be seen that the contribution is overweight breaches. Due to the improper treatment, Sinopec improve the performance step by step. There is no doubt that Sinopec plays the important role in the national economy and society. The value of green growth and low-carbon lifestyle are sustainable and advanced. However, the negative performance of Sinopec should be corrected and standardized by law, contracts and the local governments, especially the problem is relevant to the balance of entire ecosystem.

Using the internal force of Sinopec to protect environment and lead a green lifestyle is another method. First, Sinopec need to improve the skills og communicating and interacting. Innovation, idea and flexibility are important in business. Petrochemical pollution and three wastes cannot be ignored. Every single person needs to pay attention to the environment aspect. As a result, Sinopec can resolve the problem and enhance the social responsibility, which can help the company improve the reputation and communicate better with customers, employees and other stakeholder.

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