June 5, 2019, Shanghai, China - Sinochem International (600500.SH), a central chemical enterprise of China, released the Sustainability Report for Sinochem International 2018 on the World Environment Day. For the first time, the report explicitly defines “sustainable development” as part of the corporate strategy, highlighting Sinochem International’s determination to integrate business practices and social values and embrace sustainable development, while driving high-quality development with innovation.
This is the 15th sustainability report released by Sinochem International since 2005.
(Sustainability Report for Sinochem International 2018)
According to Liu Hongsheng, General Manager of Sinochem International, in 2018 the company underlined the construction of a sustainable development system as a company strategy and developed a three-year action plan accordingly. Leveraging science-oriented innovation and global collaboration, it seeks to rethink business models and product design, to keep reducing its negative impact on the environment and society, promote the balanced development of the economy, society and environment, and embrace a sustainable future.
(Photo: Roadmap for Sinochem International Sustainable Management Action)
The report shows that around its three strategic lines — new materials, new energy, and bio-industry, Sinochem International achieved great breakthroughs in 2018, together with best financial results ever in history. Throughout the year, Sinochem International delivered an operating income of RMB 59.96 billion; profit of RMB 31.97 billion, an increase of 57% year-on-year; net profit of RMB 911 million, an increase of 41% year-on-year; and total assets of RMB 50.33 billion.
Taking its advantages in technological innovation, operational experience, and upstream resources, Sinochem International continues to extend its green chemical product chain and seek the efficient use of resources as well as actively infusing sustainability into product value.
In the field of agrochemicals, where Sinochem International has been a long-time leader, it develops and produces high-efficiency, low-toxic, non-polluting, non-drug-resistant green agrochemical products, and improves soil health through green prevention and control. It assists farmers with scientific planting and reduce the dosage and adverse impact of pesticides and help improve crop quality and efficiency in the agriculture industry by providing holistic drug solutions and technical support covering the entire plant growth process from breeding to harvest. Overseas, its agrochemical sector is also offering integrated chain-wide agricultural solutions to countries and regions along the Belt and Road. With technical services driving business model innovation, it helps target regions improve agricultural technology and advance infrastructure construction.
Along the green product chain, breakthroughs in new materials and new energy was also a highlight in 2018, which will directly benefit water treatment and environmental protection. For example, the reverse osmosis membrane material previously introduced in the membrane material industry will help enterprises reduce wastewater discharge and energy consumption. While the layout in the segment of lithium battery and lithium battery materials, lightweight auto materials, and so on will power the green development of new energy vehicles, reducing vehicle exhaust while saving fuel.
As a central enterprise in the chemical industry, Sinochem International puts Health, Safety & Environment (HSE) high on the agenda of management and operations, and regards safe production, environmental protection, and occupational health as an integral part of its social responsibility; therefore, it integrates HSE into all production and management activities, laying a solid foundation for sustainable development.
According to the report, Sinochem international invested RMB 127 million and RMB 439 million in security and environmental protection respectively in 2018, representing a significant increase from the previous year. At the same time, supported by 79 well-established institutional systems and referring to the DuPont security system, the company established a world-class HSE 24 Element Management System with Sinochem characteristics. Through standardized management, 329 standardized, fixed and replicable good practices have been established. Its seven subordinate factories have passed the acceptance inspection for “Five-Star Factory”, and multiple subsidiaries honored by local governments, the Ministry of Industry and Information Technology, and the China Petroleum and Chemical Industry Federation (CPCIF) as a Green Factory and Leading Safe Producer.
Concerning energy conservation and emission reduction, Sinochem International performs whole-process and all-round pollution control that engages all employees. The pollutant discharge and emission comply with national and local emission standards and reduction requirements. At the same time, energy consumption is lowered through proactive energy management and technical means, which leads to better performance indicators. Compared with the previous year, in 2018 Sinochem International saved 94.8 tons of water, cut wastewater discharge by 84.4 tons, and reduced sulfur dioxide emissions by 25.7 tons.
Technological innovation is steadily empowering the sustainable development of Sinochem International. Honoring Sinochem’s core values – In Science We Trust, Sinochem International keeps upgrading in terms of strategic transformation, management system, talent evaluation mechanism, and R&D system, and seeks to build up an operation management system that drives growth with innovation.
The report also indicates that Sinochem International's technology investment reached 660 million in 2018, a year-on-year increase of 26%. The capitalization of R&D spending represented a proportion of 9.35%; R&D personnel recorded 891, surging to 355% year-on-year; and 63 projects were under research. Throughout the year, 153 talents in the profession of science and technology were introduced, and 152 patent applications were newly filed, including 138 invention patents.
Guided by the philosophy “from the society, for the society”, Sinochem International undertakes corporate social responsibility while promoting social development in production and management activities. Through efforts in precision poverty alleviation, community care, and education, it allows corporate development to serve the construction of a harmonious community.
Sinochem International donated a total of RMB 1.03 million throughout the year of 2018. In response to the Sinochem's targeted poverty alleviation action “Dream Come True”, 268 employees donated RMB 258,000 as subsidies for poor students in Ar Horqin Banner, Linxi County, Delingha, and Kamba County to complete their studies.
Looking forward to the sustainability path ahead, Sinochem International will continue to establish strategic goals, drive high-quality development with innovation, strengthen safety and environmental management, and work with stakeholders for more balanced and extensive development, as well as its the vision of “Fine Chemistry, Green Life”.