Seek China National Petroleum’s “HSE Management Principles”

Health, Safety and Environment (HSE) Management Principles of China National Petroleum Corporation: 1. Health, safety and the environment must be given priority in any decision-making process； II. Safety is a necessary condition for employment ； III. Enterprises must provide health, safety, and environmental training to their employees ； IV. Managers at all levels are responsible for health, safety, and environmental matters within their areas of responsibility ； V. Managers at all levels must personally participate in health, safety, and environment audits ； VI. Employees must participate in the identification of hazards associated with their positions and in risk control ； VII. Potential accident hazards must be rectified promptly ； VIII. All accidents and incidents must be reported, analyzed, and addressed promptly ； IX. Unified health, safety, and environmental standards shall be applied in contractor management ； Explanations on the Compilation of the \"Health, Safety, and Environment (HSE) Management Principles\" of China National Petroleum Corporation I. Purpose of Compilation To unify understanding of HSE, standardize HSE practices, foster an HSE culture, and ensure better implementation of the corporation’s HSE policies and strategic goals. II. Basis for Formulation: The HSE management principles are formulated in accordance with the group company’s HSE policies and strategic objectives, by drawing on the practices of international corporations such as DuPont, Shell, and BP, and taking into account the actual conditions of the group company. III. Relationship with HSE policies and strategic objectives The HSE management principles represent a further elaboration and clarification of the group company’s HSE policies and strategic objectives; they constitute the basic requirements and behavioral guidelines for the key aspects of HSE management within the group company. The HSE management principles, together with the HSE policy and strategic objectives, constitute the basic guiding principles for HSE management within the group company. IV. Interpretation of Provisions (1) Health, safety, and the environment must be given top priority in any decision-making. Good HSE performance serves as a solid foundation and continuous driving force for enterprises to achieve excellent results and build a positive social image. In HSE work, prevention should take precedence and control should be exercised at the source; that is, when making decisions regarding strategic planning, project investment, and production operations, potential HSE risks must be considered and assessed simultaneously, with appropriate risk control measures put in place to ensure favorable HSE conditions and promote safe and clean development. (II) Safety is a necessary condition for employment. Employees must commit to complying with safety regulations, undergo safety training and pass relevant assessments; demonstrating good safety performance is a necessary requirement for an enterprise to hire employees. Companies should thoroughly assess employees’ safety awareness, skills, and past performance, and must not hire unqualified individuals. Managers and operators at all levels should strengthen their awareness of safety responsibilities, improve their own safety skills, earnestly fulfill their safety duties at their posts, and continuously enhance their personal safety performance. (III) Enterprises must provide health, safety, and environmental training to their employees. Receiving HSE training relevant to one’s job is an employee’s basic right, as well as an important responsibility of the enterprise in terms of HSE efforts. Companies should continuously provide HSE training and retraining to their employees, ensuring that they possess the relevant HSE knowledge and skills, and fostering a strong HSE awareness and behavior among them. All employees must proactively undergo HSE training; only after passing the assessment and obtaining the corresponding qualifications can they take up their duties. (IV) Managers at all levels are responsible for health, safety, and environmental matters within their areas of responsibility. HSE responsibilities are an important part of job duties. Managers at all levels are the direct responsibles for HSE activities within their respective areas of jurisdiction or business scope. They should actively fulfill their HSE responsibilities within their scope of duties, set HSE objectives, provide the necessary resources, improve HSE systems and strengthen their implementation, in order to continuously enhance the level of HSE performance. (5) Managers at all levels must personally participate in health, safety, and environment audits. Conducting on-site inspections, internal system audits, and management reviews are effective ways to continuously improve HSE performance, as well as effective means of demonstrating proactive leadership. Managers at all levels should set an example by actively participating in on-site inspections, internal system audits, and management reviews, so as to understand the status of HSE management, identify and address any weaknesses in this area promptly, and promote continuous improvement in HSE management. (VI) Employees must participate in hazard identification and risk control. Hazard identification and risk assessment form the basis of all HSE activities, and it is also a responsibility that employees must fulfill as part of their job duties. Hazard identification and risk assessment must be conducted prior to any operational activity. Employees should actively participate in hazard identification and risk assessment for their positions, be familiar with the risks associated with those positions, and master the control methods to prevent accidents from occurring. (7) Potential accident hazards must be rectified promptly; as long as these hazards remain, there can be no peace in terms of safety. All potential accident hazards, including unsafe human behaviors, should be rectified immediately once identified; for those that cannot be rectified right away, appropriate monitoring measures should be taken promptly. It is necessary to track and verify the implementation process and effectiveness of the corrective or monitoring measures to ensure that they achieve the desired results. (8) All accidents and incidents must be reported, analyzed, and addressed promptly. Accidents and incidents are also a type of resource; each one provides an important opportunity for improving management practices, and they are of great significance for analyzing safety conditions and identifying problems. It is necessary to improve mechanisms, encourage employees and grassroots units to report accidents, and tap into accident-related resources. All accident incidents, regardless of size, should be reported promptly in accordance with the \"four no-lets-go\" principle. The causes should be identified as soon as possible, corrective actions taken, and potential accident risks eliminated. Resources related to accidents and incidents should be shared fully, lessons drawn from them in a thorough manner, so as to prevent such accidents and incidents from occurring again. (IX) Unified health, safety, and environment standards shall be applied in the management of contractors. Enterprises should integrate the HSE management of contractors into their own internal HSE management systems, enforce unified oversight, and include accidents involving contractors in the enterprise’s accident statistics. The contractor shall, in accordance with the unified requirements of the company’s HSE management system, strengthen internal management in areas such as the implementation of HSE policies and standards, employee HSE training, and the provision of personal protective equipment, in order to continuously improve its HSE performance and meet the company’s requirements.