Exhibit 99.2

&/7*30/.&/5”- _40$*”- _”/%_(07&3/”/$&_3&1035

1 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2022

CONTENTS Message from the Chairman 01 About us 03 Awards and honors 04 Chapter 1 Governance of Sustainable Development 05 Governance structure 06 Communication with stakeholders 08 Development strategy 10 ESG risk management 11 Integrity and compliance 13 Technological innovation 15 Digital transformation 17 Chapter 2 Safe Operation and Green & Low-carbon Development 19 Responding to climate change 20 Strengthening safety management 24 Intensifying environmental protection 26 Developing a circular economy 30 Protecting biodiversity 33 Chapter 3 Fulfilling Responsibilities and Serving Society 34 Product liability performance 35 Supply chain management 37 Employees’ rights and interests & development 39 Dedication to society 41 SPC ESG performance table 44 Written Comments on Assessment of Corporate Environmental, 47 Social and Governance Report Index 51 About this report 53 Reader feedback 54

MESSAGE FROM THE CHAIRMAN We will firmly promote the shift of oil refining to chemical industry, chemical industry to materials, materials to high-end ones, and industry park to ecological ones, and strive to be the vanguard of high-quality development and a national team with self-reliance and self-improvement of high-level science and technology. Dear friends, On behalf of the Board of Directors of the Company, I’d like to pandemic, we overcame many difficulties to ensure the supply of thank you for your long-term care and support for SPC. livelihood goods and meet market demand, optimized the production SPC always regards social responsibilit y as the biggest plan and material balance, and smoothed logistics by establishing driving force for its growth, sticks to the combination of its business transfer storage facilities, expanding receiving channels and increasing with environmental protection, social responsibility and corporate joint water and land transportation, to strive to complete the tasks to governance (ESG) and integrates the ESG concept into its operation guarantee supply. We maintained the record of zero interruption to the management system. On the basis of releasing social responsibility supply of more than 200 major chemical raw and auxiliary materials, reports for 14 consecutive years, the Company starts to release the thus providing solid support for the stable production of downstream ESG report this year. We will continue to practice ESG management, enterprises. On the premise of guaranteeing the market supply of our take on social responsibility and respond to the concerns of investors original products, we developed and switched to producing special and stakeholders with concrete actions. materials for nucleic acid sampling tubes, which ensured the market In the past year, faced with severe challenges such as energy supply of anti-COVID-19 supplies. security and climate change the green and low-carbon development SPC took on the responsibility as a member of the national under the carbon peak and carbon neutrality goals has turned into a strategic scientific and technological force and actively advanced global expectation and consensus. As industry chain, supply chain and the deep integration of the innovation chain and industry chain. We value chain in the global petrochemical industry started to undergo adhered to the combination of independent innovation and collaborative profound adjustments, the competitive environment of the industry innovation, strengthened innovation platform construction, established became severer and petrochemical companies were under multiple a high-level experts joint meeting mechanism, proactively served the pressure from demand contraction, supply shocks and weakening country’s strategic needs, bravely undertook major research tasks, expectations. In this new situation, SPC established and implemented promoted breakthroughs in core technologies in key fields, structured the development idea of “shifting the focus from refining to chemicals, our innovation chain based on the industrial chain, extended our chemicals to materials, materials to high-end ones, and petrochemical industrial chain through the innovation chain, gradually came up with park to eco-friendly park”, took overall considerations to promote industrial achievements in carbon fiber and hydrogen energy fields production and operation, sci-tech innovation, reform and management, and became the first enterprise in China and the fourth enterprise in project construction, and COVID-19 pandemic prevention and control, the world mastering the industrialization technology of 48K large-strived to strengthen competitiveness and development resilience and tow carbon fiber. The “Flying” torch made of carbon fiber composite basically completed all the target tasks. material by SPC for the first time in the world appeared on the site of SPC exerted maximum effort to ensure supply and drive the the Olympic and Paralympic Winter Games Beijing 2022 successively. industry chain to resume work and production in a coordinated way. SPC actively advanced green and low-carbon development and During the period of lockdown management due to the COVID-19 promoted “ shifting the focus from petrochemical park to eco-friendly 01 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2022

park”. We contributed to green transformation and development “Public Open Days” activities so that the public could feel the results of through project construction, participated in the market-oriented trading SPC’s green development. In the severest moment battling COVID-19 in of “Green Electricity Certificate” for the first time, actively advanced Shanghai, SPC undertook the task of receiving more than 400 medical clean energy substitution projects and promoted the transition workers who came to aid Shanghai and exerted maximum effort to of traditional energy plants to new energy production bases. We ensure service support for them. We implemented rent reduction systematically conducted air pollution control and strictly controlled the and exemption and other relief policies to reduce or exempt rent for boundary VOCs concentration index, and achieved remarkable results. micro and small enterprises and individual businesses. Besides, we In addition, we strengthened sewage source control, internal production continuously launched social welfare actions and contributed to the management and daily monitoring and control, to continuously improve rural revitalization of the paired cooperation areas through supportive sewage treatment capacity. SPC passed the environment friendly spending and education support. enterprise review in 2022. The year 2023 is a year full of hopes and uncertainties. The SPC strove to improve its intrinsic safety. We steadily and orderly journey ahead is long and arduous, but with determined steps, we advanced the emergency response to the “June 18” explosion accident will reach our destinations. We will completely, accurately and fully in refining unit of #1 ethylene glycol plant , potential risk investigation implement the new development concept, take keeping stability the top and rectification, restorative maintenance and resumption of work and priority and seek progress while maintaining stability, actively integrate production and adhered to “prohibition of production, construction and into the new pattern of development, better coordinate development startup unless safety conditions are in place”. As a result, we achieved and safety, strive to promote our production and operation to the successful one-time startup of 62 sets (series) of production units “outperform the general trend and be better than counterparts”, and the whole industrial chain resumed normal operation. We put into continuously bolster the future development momentum and market use a digital-intelligent control platform for double prevention, fully competitiveness, create a new situation of high-quality development implemented the double prevention mechanism of safety risk control with all our strength and strive to contribute SPC’s bit to the realization by level and hidden danger inspection and handling, strengthened the of Chinese modernization. risk control of key links such as engineering construction, equipment maintenance, direct operation and contractor management and comprehensively promoted improvement of intrinsic safety and environmental protection , striving to consolidate the foundation of high-quality development. SPC earnestly performed its social responsibility and shared its development results. We paid attention to the integration and joint Wan Tao development with the adjacent communities and continued to launch Chairman March 23, 2023 ENVIRONMENTAL, SOCIAL AND 02 GOVERNANCE REPORT 2022

ABOUT US Located in Jinshan District, Shanghai, Sinopec Shanghai Petrochemical Co., Ltd. (hereinafter referred to as SPC) is a holding subsidiary of China Petroleum & Chemical Corporation, one of the major refining-chemical integrated petrochemical companies in China and also an important production base of refined oil products, intermediate petrochemical products, synthetic resins and synthetic fibers in China. SPC grows out of Shanghai Petrochemical Complex which was founded in 1972. In 1993, as one of the state-owned enterprises subject to the standardized reform of the shareholding system, SPC became the first joint stock limited company in China, with its shares listed on the Shanghai Stock Exchange, the Stock Exchange of Hong Kong and the New York Stock Exchange at the same time. CORPORATE PERFORMANCE Total assets Operating revenue Total profit 412.43 825.18 -36.00 in RMB 100 million in RMB 100 million in RMB 100 million Total taxes Number of employees R&D expense 136.65 8007 1.31 in RMB 100 million persons in RMB 100 million INDUSTRY CLUSTER The Company actively strengthens its major business such as refining, chemicals, synthetic resin and synthetic fiber and explores such new fields as carbon fiber, advanced materials and new energy, to build a cluster of “4+” petrochemical industries. Refining Synthetic resins Gasoline, diesel, aviation kerosene, Polyethylene, polypropylene, LPG, etc. polyester, polyvinyl alcohol, etc. Chemicals Synthetic fibers Ethylene, propylene, butadiene, pure Carbon fiber, acrylic fiber, polyester benzene, p-xylene, ethylene glycol, ethylene staple fiber, polyester filament yarn, oxide, vinyl acetate, C5 fractions, etc. etc. With the mission of “Fighting for a Brighter Life”, the Company always strives towards a “Leading Domestically, First-class Globally” company specialized in energy chemical products and new materials! 03 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2022

AWARDS AND HONORS Title of “Collective with an Outstanding Contribution to Olympic and Paralympic Winter Games Beijing 2022” One gold medal and one silver medal in 2022 National Industrial Vocational Skills Contest Excellent Organization Award in 2022 National Industrial Vocational Skill Contests—Sulfur Recovery Unit Operators Contest Group Third Prize in 2022 National Industrial Vocational Skills Contests—Pyrolysis Gasoline Hydrogenation Unit Operators Contest Second Prize in “Action for Healthy China” National Broadcast Gymnastics Online Competition Title of “2020-2021 Shanghai Enterprise with Good Credit in Honoring Contracts (Grade AAA)” First Prize of National Corporate Culture Excellent Achievement Award 2020-2021 Excellent Site in National Survey on the Condition of Scientific and Technical Workers by China Association for Science and Technology 2021 2022 Shanghai May Day Labor Award Title of Excellent Collective in Blood Donation Work Assessment of Shanghai Communities and Enterprises and Public Institutions 2021 Second Prize of Shanghai Corporate Culture Excellent Achievement Award 2020-2021 Second Prize in Comprehensive Evaluation of Energy Statistics Work in Shanghai 2022 Second Prize in Comprehensive Evaluation of Industrial Statistics Work in Shanghai 2022 Second Prize in Comprehensive Evaluation of Investment and Construction Statistics Work in Shanghai 2022 …… ENVIRONMENTAL, SOCIAL AND 04 GOVERNANCE REPORT 2022

GOVERNANCE OF SUSTAINABLE DEVELOPMENT 01 Governance structure SPC continuously improves its 02 Communication with stakeholders standardized corporate governance 03 Development strategy structure, integrates the ESG concept 04 ESG risk management into its development strategy and whole 05 Integrity and compliance operation process, strives to modernize 06 Technological innovation its corporate governance system and 07 Digital transformation governance capacity, actively safeguards the legitimate interests of investors, communities, customers, employees and other stakeholders and explores to strengthen scientific and effective corporate governance and improve the long-term mechanism for its lawful and compliance operations.

GOVERNANCE STRUCTURE The Company strictly complies with its Articles of Association and domestic and overseas securities regulation provisions, actively establishes a corporate ESG governance structure in line with regulatory requirements and international rules, integrates ESG into its development strategy and works to build a scientific and professional ESG management system and a clear and transparent ESG governance structure, to continuously promote the modernization of its corporate governance system and governance capacity. In the Company, the general meeting of shareholders, the Board of Directors and its special committees, the Board of Supervisors, and the management under the responsibility of the General Manager , have well-defined rights and responsibilities, work closely together and operate efficiently. General Meeting of Shareholders Strategy Committee Audit Committee Board of Board of Directors Supervisors Remuneration and Appraisal Committee Management Nomination Committee BOARD OF DIRECTORS The Company has directors elected by the general meeting of shareholders. As of December 31, 2022, the Company had 11 members in its Board of Directors, including four executive directors, two non-executive directors and five independent non-executive directors. Wan Tao was appointed as the executive director and Chairman of SPC with effect from September 8,2022. In 2022, the Company held 13 meetings of See the 2022 Annual Report of the Board of Directors, and these meetings were attended by all SPC for details of the members of directors in general. the Board of Directors As the highest authority in management and information disclosure regarding the Company’s ESG matters, the Board of Directors attaches great importance to sustainable development management by integrating ESG into the whole process of the corporate operation, and establishing an effective ESG management mechanism. Thanks to this, a governance structure with clear hierarchy and division of labor was formed and applied to effectively control ESG-related risks and further improve the corporate governance. ENVIRONMENTAL, SOCIAL AND 06 GOVERNANCE REPORT 2022

Age 6 d La Diversification of the Board 1-7 w 0 0 l 5 9 ca 90—% i 9 of Directors 1 m % 4 e d % h 7 % e 7 o c 2 2 r . B u The Company has formulated the g t 7 s i A e 2 n P 2 e s 7 s Policy on Diversified Members of the Board . A d 2 m 7 n i of Directors. In line with the objectives and s i % r t t a A o i requirements of the Board of Directors for 6 g n 4 d e diversifying members, the Company selects % 5 1 e %6 directors considering their professional—c 3 6 na .63 0 niF & gni experience, knowledge and skills, service tnuoccA term, region, education, gender, age, etc. SPC had 9.1% of female directors at the end of 2022. le ma Fe % 9.1 M r s N 9 a t o o n—0 l e c i n . e i r d 9 d % e t 5 p e n 5 e % . 4 n n d 5 . d e e 5 t n p 4 d INDEPENDENCE OF THE e d % r i n c e I o t BOARD OF DIRECTORS s r The Company has established a sound independent director system. It selects and appoints independent directors strictly following the election procedures and job qualification specified in these Articles of Association, ensuring not less than 1/3 of independent directors in the Board of Directors. Independent directors participate in the decision-making of the Board of Directors, give feedback on problems to the management and listen to reports, actively pay attention to the dual carbon goals, new materials and other major strategic issues, and guide the prevention and mitigation of risks. By the end of 2022, SPC had five independent members in the Board of Directors, accounting for 45.5%. SPECIAL COMMITTEES OF THE BOARD OF DIRECTORS The Company has four special committees under the Board of Directors. In collaboration with the leading group of social responsibility of the Company, the Strategy Committee is responsible for research, analysis and risk assessment of sustainable development, ESG and other related matters and relevant major investment decision-making of SPC, and makes recommendations to the Board of Directors. The Audit Committee is responsible for reviewing the Company’s financial report and discussing risk management, internal control and financial reporting matters. In 2022, the Audit Committee held five meetings, and these meeting were attended by all members of the committee. The Remuneration and Appraisal Committee studies the standards for evaluating directors and the senior management and implements the evaluation, and studies and reviews the remuneration policies and programs for directors, supervisors and the senior management. It includes ESG indicators as the obligatory targets in the performance evaluation, and incorporates ESG performance into the annual performance evaluation system of the management at all levels. In 2022, the Remuneration and Appraisal Committee held four meetings, and these meeting were attended by all members of the committee. The Nomination Committee makes suggestions to the Board of Directors on the size and composition of the Board of Directors, studies the criteria and procedures for selecting directors and the senior management, and reviews and makes recommendations on respective candidates. In 2022, the Nomination Committee held two meetings, and these meeting were attended by all members of the committee. MANAGEMENT The Company’s management consists of the General Manager, Deputy General Manager, Chief Financial Officer, Board Secretary and other leaders, as well as the departments related to various ESG issues. The management is responsible for promoting the implementation of ESG matters according to the requirements of the Board of Directors, and reports to the Board of Directors on a regular basis. 07 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2022

COMMUNICATION WITH STAKEHOLDERS MATERIALITY ANALYSIS Identification The Company has established a materiality analysis process of ESG topics. It determines material topics —† ESG Reporting Guide of HKEX with vital impacts on the Company and stakeholders through the primary steps of identification, evaluation and —† Sustainable Development Reporting screening, and makes key disclosures and responses. 1 Energy and climate change Guidelines —† National and Shanghai macro policies 6 13 7 2 Water management —† Recommendations from the Company’s important internal management 5 2 10 3 Atmospheric pollution management —† Stakeholder consultation 1 8 3 4 Hazardous waste management Extremely 9 4 5 Biodiversity protection Evaluation 6 Resource efficiency 12 14 11 —† Evaluation by domestic and foreign 7 Work safety specialists in the same field —† Evaluation by internal employee 8 Product quality representatives evaluation —† Comprehensive two-dimensional 9 Employee development evaluation External 10 Employee health 11 Supply chain management Screening 12 Investor relations management —† Constructing a materiality analysis matrix 13 Anti-corruption —† Ranking topics based on their degrees of importance 14 Community co-building —† Disclosure of topics with high Important In-house evaluation Extremely important materiality STAKEHOLDER ENGAGEMENT Identification of Expectations and demands Communication and responses stakeholders —†Legal compliance operations, safe and reliable products Government and —†Implementing the goals of carbon peak and carbon —†Executing policies and inspecting institutions regulators —†Discussions, symposiums, communication and reporting neutrality, and facilitating industry strides —†Sound performance and stable tendency —†General meeting of shareholders and information disclosure Investors —† —† Intensify operation and information disclosure Investor relations management, rationalization of profit distribution —†Serving customers to create value —†Customer visits and satisfaction surveys Customers —† —† Providing premium products and services Customer service hotline, website and WeChat official account —†Enhancing operational transparency —†Exchange and interviews, media communications Public —† —† Offering quality products On-site research and visits, and “Public Open Days” events —†Achieving shared growth through discussion and —†Exchanges and mutual visits, and cooperative research and Peers and industry collaboration, and advancing win-win cooperation development groups —†Drawing on each other’s strengths, and facilitating industry —†Industry forum and expansion of platforms transformation —†Guaranteeing occupational health and safeguarding the rights and interests of employees —†Staff meeting and staff training Employees —† —† Polishing vocational skills and providing a development Corporate culture activities and internal communication platform platform Suppliers and —†Open, equitable and fair procurement —†Supplier communication, evaluation and training partners —†Integrity and compliance, and mutual benefit and win-win —†Transparent procurement and responsible supply chain —†Community co-building and environmental protection —†Volunteer services, public benefit and charity Community —† —† Supporting public welfare and targeting poverty relief Community activities and risk assessment ENVIRONMENTAL, SOCIAL AND 08 GOVERNANCE REPORT 2022

SAFEGUARDING THE RIGHTS AND INTERESTS OF INVESTORS In 2022, the Company innovated information disclosure methods, raised the quality of information disclosure, deepened communication with investors, strengthened corporate governance and fully protected the legitimate rights and interests of investors. Compliance and effectiveness of information disclosure —† Prepare annual reports, interim performance reports and first and third quarterly reports on a regular basis, and update the 20F annual reports filed with the SEC. —† Release 47 interim announcements, including resolutions of the Board of Directors and the Board of Supervisors, resolutions of the general meeting of shareholders, performance forecasts, etc. —† Enrich the content of CSR reports, strengthen the requirements of non-financial information disclosure and the targets of controlling carbon emission intensity Innovation in investor relations management proves effective —† The Company continues the online annual and interim results conferences as well as performance briefings —† Establish communication with investors and media reporters via telephone and the Internet to ensure open and clear communication channels —† Attend online investor meetings to communicate with fund managers, securities analysts and shareholders to underscore the value of the Company Meetings are organized in a standardized and efficient manner —† Draw up work plans and make preparations for the meeting of the Board of Directors and the general meeting of shareholders —† The general meeting of shareholders was held online for the first time —† Meetings were efficiently organized in compliance with laws and regulations, and all motions were adopted Innovate “Public Open Days” events In addition to holding daily public open days, inviting local governments, sister companies and residents in and around the community to enter the Company to experience and know about its evolution, the Company also successively arranged many themed public open days, such as “Return home as often as possible”, “The plants are so beautiful. Why not visit them together?” and “Jointly build a clean and pretty world”, with a total of 72 events and 1,421 participants throughout the year. The Company’s attitude towards and spirit of practicing the philosophy of green development, centering on environmental protection governance and scientific and technological innovation, and seriously implementing corporate ESG governance were unanimously praised by the visitors. 09 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2022

DEVELOPMENT STRATEGY The Company thoroughly applies the spirits of the CPC’s 20th National Congress, upholds the new development concepts of “innovation, coordination, green, openness and sharing”, actively responds to the national strategic goals of “dual carbon” , Shanghai’s strategic requirements of “south-north industrial transformation” and Sinopec’s industrial strategic layout of “one base, two wings and three new growth poles”, and deeply implements the six major development strategies of “leading with value, market orientation, innovation-driven development, strengthening enterprises through talents, green and low-carbon, and integrated development”. It firmly shifts its focus from oil refining to chemicals, chemicals to materials, materials to high-end ones, petrochemical park to eco-friendly park, and strives to create a “Leading Domestically, First-class Globally” company specialized in energy chemical products and new materials. Leading Market with value orientation Integrated DEVELOPMENT Innovation-driven development STRATEGY development Green and Strengthening low-carbon enterprises through talents ENVIRONMENTAL, SOCIAL AND 10 GOVERNANCE REPORT 2022

ESG RISK MANAGEMENT The Company complies with the relevant requirements on ESG risk management and internal control of the Environmental, Social and Governance Reporting Guide of the Stock Exchange of Hong Kong (HKEX), the Sustainable Development Reporting Guidelines of the Global Reporting Initiative (GRI) and so on, to continuously improve its ESG risk management structure and comprehensive risk control system. “THREE DEFENSIVE LINES” RISK MANAGEMENT MODEL In order to ensure the effectiveness of risk management and internal control, the Company has established a risk management structure consisting of various units (departments), a risk management executive office and a risk management supervisory office, and has adopted a “three defensive lines” risk management system. We focus on dynamic monitoring of ten major risks, including work safety risk, ecological and environmental protection risk, macro economy risk, market competition and price risk, human resources risk, scientific and technological innovation risk, strategic planning risk, procurement and supply chain management risk, investment risk, and Party conduct and clean & honest governance risk (moral honesty), and put in place the “double prevention mechanism” of grading and controlling safety risks as well as investigating and addressing potential accidents, and solidly prevent and resolve major risks. 1 2 3 Operation and Risk Independent management management assurance The first defensive line is The second defensive line mainly The third defensive line consists primarily comprised of the includes the risk management mainly of the internal audit department Company’s various units and internal control departments, and discipline inspection department, (departments), responsible responsible for formulating the responsible for providing independent fo r d a i l y o p e r ati o n a n d policies relevant to the Company’s supervision and evaluation of the management, design and ESG risk management and internal effectiveness of the Company’s ESG implementation of relevant control, and making unified plans risk management and internal control control activities to address and carrying out the risk control system, and effectively improving risks. work. the efficiency of risk management implementation. INTERNAL CONTROL SYSTEM In 2022, the Company continued to strengthen the foundation construction of internal control system, optimize the internal control system by centering around the elements of internal environment, risk assessment, control activities, information communication, and internal supervision, constantly improve the internal control process, promote the construction of internal control informatization, strengthen the supervision of institutional implementation and guarantee the effective operation of the system, so as to integrate internal control into the day-to-day corporate management on an ongoing basis. 11 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2022

â—†Establishment and improvement of the organizational structure, optimization of the governance structure, management system and operation mechanism â—†Establishment of authority guide and authorization mechanism â—†Reasonable allocation of human resources and optimization of human resources placement â—†Identification of risk factors Internal â—†Risk analysis and assessment environment â—†List of risks â—† R o u t i n e s u p e r v i s i o n f r o m business departments Internal â—†Special supervision from risk Risk control departments supervision assessment â—†Supervision and evaluation from INTERNAL audit department CONTROL SYSTEM OPTIMIZATION Information Control communication activities â—†Inspection of implementing the HSE â—†Internal control informatization management management system â—†Delicacy management of “three â—†Information disclosure management system â—† basics” work Investor relations work system â—†AS9100D quality management system ޜਨ internal control was “generally effective”. Meanwhile, in compliance with the requirements of the internal control normative system, the __ Company has formulated a system revision plan, made a revision of —„ and improvements in the system without delay, and standardized the activities related to the system management. The Company discloses the internal control evaluation reports to the public every year ENVIRONMENTAL, SOCIAL AND 12 GOVERNANCE REPORT 2022

INTEGRITY AND COMPLIANCE SPC adheres to the rule-of-law culture’s philosophy of “legality, compliance, fairness and integrity”, strictly complies with the Anti-monopoly Law of the People’s Republic of China, the Anti-unfair Competition Law of the People’s Republic of China and other relevant laws and regulations, unceasingly reinforces compliance management, constantly intensifies the construction of an honest and clean government, and cultivates a culture of anti-corruption and integrity. In 2022, the Company was conferred the title of “2020-2021 Shanghai Enterprise with Good Credit in Honoring Contracts”, and was given the highest credit rating of Grade AAA. STRENGTHENING THE COMPLIANCE MANAGEMENT Refining the compliance system Year of Compliance Management Law Enhancement •Formulating the SPC’s Work Implementation Rules for “Year of Compliance Management Enhancement” and forming 97 implementation Risk control items • O rganizing and holding the me etings to advance and implement the “Year of Compliance Management Enhancement” and “FIVE-IN-ONE” COMPLIANCE the monthly compliance management meetings System •Conducting special inspections of the “Year of MANAGEMENT Compliance Management Enhancement” PATTERN •Carrying out tracking and supervision of rectifying compliance management issues every quarter Compliance Heightening awareness of integrity and compliance Internal Control —†Carrying out rotation training for compliance administrators —†Vigorously arranging a series of publicity activities —† Building of a cross-departmental cooperative pattern of compliance management for the Civil Code and integrity and compliance —† Establishment of the system of compliance management filing —†Organizing the quizzes of “Integrity and Compliance —† Establishment of a routine meeting system of compliance management M a n a g e m e n t K n o w l e d g e” a n d “ C i v i l C o d e —† Revision and refinement of the SPC’s Management Procedures for the Identification Knowledge” for law popularization on WeChat Over and Compliance Evaluation of Laws, Regulations and Other Requirements 10,000 people participated in the WeChat quiz for —† Performance of professional compliance evaluations law popularization —† Establishment of a mechanism for feedback reports on compliance risk events —† Development of the compliance management informatization platform Strengthen supplier compliance We constructed the informatization process of identifying laws and regulations, management identified a total of 2,140 requirements throughout the year from laws, regulations and —† The suppliers’ production and operation license other requirements which are related to the Company’s production and operation, and qualifications of all outsourcing raw and auxiliary entered 2,057 items into the identification checklists of laws, regulations and other materials (hazardous chemicals) of SPC were requirements comprehensively checked, sorted, and improved. The suppliers’ production and operation license qualifications of all outsourcing raw and auxiliary materials of SPC are within the validity period. 13 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2022

ENHANCING CLEAN GOVERNANCE CONSTRUCTION The Company strictly abides by anti-corruption laws and regulations and fully supports the United Nations Convention against Corruption and other related initiatives. Improving anti-corruption mechanism —† Strictly implementing the partners’ access system Formulated and issued the SPC Key Points for Improving the Party Working Style, Boosting Clean Governance and the Fight Against Corruption in 2022 Optimizing the dynamic access and exit mechanism —†Formulated and issued the SPC Breakdown of the Objectives and Tasks for Improving for partners the Party Working Style, Boosting Clean Governance and the Fight Against Corruption —†Partners involved in breaches of clean governance agreements and major in 2022 —† accidents (incidents) in safety and environmental protection, quality and The Secretary of the Company’s Discipline Inspection Commission signed 21 copies of the Letter of Responsibility for Supervision and Enforcement of Improving the Party security stability were dynamically excluded or banned Working Style, Boosting Clean Governance and the Fight Against Corruption with the Secretaries of the Discipline Inspection Commissions (General Branches) of the directly- Controlling the access threshold of partners controlled entities —†Signed a letter of responsibility for clean governance with related parties 2020 2021 2022 through the Sinopec Epec platform. Sessions of clean governance 240 148 284 training CULTIVATING A CULTURE OF Number of people receiving clean governance training 5189 8230 8580 CLEAN GOVERNANCE (person times) Hours of clean governance Continuously carrying out “three education” on clean 498 356 568 training governance 0φThe number of cases involving corruption at SPC from 2021-2022 was 0 Organized the study of regulations such as the Administrative Improve the whistleblowing & reporting mechanism Regulations on Business Enterprises Run by the Relatives of Daily 517 education Sinopec Leaders, distributed books such as case warning records to middle-level and young leaders, and published 22 Phone calls of issues of WeChat tips for clean governance Letters Email box Visit reporting Special Organized the anti-corruption and integrity education month —†Smoothen the channels of whistleblowing & reporting subject themed with “rectifying abuse of power to seek personal gains Prepare and distribute the Pocket Book of Reporting and Accusation to all employees to publicize the acceptance scope and reporting channels of education from enterprise” reporting and accusation. —†According to the principle of “centralized management and hierarchical Carried out special warning and education activities on typical handling”, the letters of reporting and accusation shall be subject to unified spiritual problems in violation of the central government’s management of SPC’s discipline inspection and supervision department, and Warning eight regulations; carried out special warning and educational shall be handled after review and approval level by level. —†Conscientiously implement the relevant requirements of national laws education lectures on “abuse of power to seek personal gains from enterprise “ cases, with a total of 176 lectures and 4,365 and regulations on the protection of whistle-blowers, and strictly keep people attendees confidential the information of whistle-blowers and the contents of reports and accusations. Carrying out the “dual clean governance assistance” Investigation of clean governance risks in positions campaign —†Carried out sort-out and investigation of clean governance risks in positions —†Family clean governance assistance: Excavate the typical example of A total of 1,003 clean governance risk posts were investigated and sorted “establishing family rules and cultivating family style”, and constantly expand out, with 2,418 personnel in risky positions. the spread and penetration of family clean governance assistance. 453 —†For those who have changed their clean governance risk positions, timely written proposals for family clean governance assistance were distributed, one-on-one information and education on clean governance risks were 613 books on clean governance and family integrity were presented, 127 provided, with 27 people exchanging sensitive posts throughout the year families of leaders at and above the grass-roots level and key posts were supported, and 461 leaders and employees and 266 family members Carrying out regular supervision participated in family clean governance assistance campaign —†Strengthening supervision over the “top leaders” and the leadership A total of 2,344 person times interviews were conducted by the Company’s —†Partner clean governance assistance: Continue to deepen partner clean leadership for various departments and units. governance assistance. 2,961 “clean governance reminder cards” were —†Promoting the clean governance “loose-leaf binder” system distributed to partners and clean governance risk position personnel, 1,272 The contents of the “loose-leaf binder” information platform for the clean partners were queried for bribery files, 391 partners signed the letter of governance of leaders were dynamically updated and maintained, adding 146 responsibility for co-construction of clean governance, and 804 employees middle-level leaders and 360 grass-roots principal leaders to the “loose-leaf signed the letter of commitment for clean governance maintenance, actively binder” promoting the co-construction of clean governance between enterprises and businesses. ENVIRONMENTAL, SOCIAL AND 14 GOVERNANCE REPORT 2022

TECHNOLOGICAL INNOVATION The Company bravely shouldered the burden of scientific and technological innovation, strove to make breakthrough in terms of key and core “bottleneck” technologies such as the development of complete technology for large tow carbon fiber and the packaged technology for critical industrialization equipment, promoted the deep integration of innovation chain with industrial chain, and drove SPC to accelerate the transformation to a technology-oriented company and build a “chain leader “ enterprise in the industrial chain. In 2022, the Company invested a total of RMB 131 million in R&D and applied for 82 national invention patents. Organizational mechanism for science and technology innovation In 2022, the Company deepened the reform of the scientific and technological system and mechanism to further stimulate the vitality of scientific research and innovation in accordance with the requirements of the SPC Continuous Benchmarking Management Improvement Plan and the Three-year Action for Deepening the Reform of State-owned Enterprises. Research platform Formulate the Implementation Measures for “the Open Competition Mechanism to Select the Best Candidates” of SPC Scientific Research Projects, and explore and implement the project organization and management mode of “the open competition mechanism to select the best candidates” Implement the project leader responsibility system for key projects. Cooperation platform National Engineering Research Center for Synthetic Fibers Cooperation platforms such as Sinopec Key Laboratory of Carbon Fiber and Its Composite Materials and Joint Research Institute of Carbon Fiber Cooperation platform established with universities, institutes and enterprises for other research fields Communication platform Plan and implement the high-level expert joint meeting mechanism Organize experts at all levels to participate in the whole process of management such as preparation of science and technology planning, plan formulation, project identification, project review, project acceptance, and results evaluation. KEY CORE TECHNOLOGICAL BREAKTHROUGH In 2022, by focusing on national strategic needs, key emerging fields, and the requirements of high-quality development, the Company accelerated the research and breakthrough of key core technologies. Large-tow carbon fiber technology The Company mastered the industrialization technology of 48K large-tow carbon fiber and achieved localization of key equipment in large-tow industrialization. New energy technology With the hydrogen energy joint laboratory as the platform, the Company cooperated in researching and developing organic liquid hydrogen storage, electrolysis of ethylene glycol waste liquid to produce hydrogen, and total photolysis of water to produce hydrogen. Energy-saving and environmental protection technologies Hydrophilic modification technology of enhanced ultrafiltration membrane, modified anaerobic coupling resource treatment technology of petrochemical excess sludge, etc. New material technologies The carbon fiber composite materials used in green & environment-friendly vehicle lightweight material technology, Winter Olympics torch, rail traffic, civil works, etc. 15 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2022

In 2022, the Company made breakthrough in the key core technology of large-tow carbon fiber, and realized localization of critical industrialization equipment such as the oxidizing furnace and carbonization furnace. The first production line of 48K large-tow carbon fiber production unit has been successfully started operation and produced qualified products, which marked the breakthrough of the Company in the field of related bottleneck material technology, and laid a solid foundation for the Company’s quality improvement and efficiency upgrade. August 15 September 17 October 9 Intermediate handover of Spinning Line 8 was the first large-tow carbon Commissioning of production successfully upgraded line equipment completed fiber production line and started up September 15 September 22 October 10 The raw tow plant started to The raw tow plant successfully Full process was lined up heat up the polymerization produced the first full box of raw and produced large-tow kettle as planned tow products MAINTAINING INTELLECTUAL PROPERTY RIGHTS The Company strictly complies with Intellectual Property Law and other laws and regulations and pays attention to the maintenance and management of intellectual property. In 2022, the Company established a leading group and working group for the standardized management and overall inspection of intellectual property under the responsibility of SPC’s main leaders and with the participation of relevant departments of the Company, which organized comprehensive investigation and rectifications of the current status and existing problems of the intellectual property, and revised the SPC Measures for the Management of Intellectual Property. SPC regularly carried out monitoring and risk assessment on its own brand to file trademark applications for registration, invalidity, objection, etc. to the national intellectual property administration based on the results. In addition, the Company managed patent protection, implementation, maintenance and abandonment as a whole, made full use of existing technical information in the R&D process, and carried out patent technology tracking to avoid infringement. Number of invention patents authorized by the Company in 2020-2022 Year 22 24 20 21 10 20 20 16 20 Items REDUCING HEALTH AND SAFETY RISKS To minimize the health and safety risks of products, the Company introduces new technologies or advanced technologies in the R&D process and conducts hazard identification according to HSE management requirements as well as risk assessment on all hazard sources identified according to the evaluation criteria, thus determining the maximum hazard degree and the maximum range of possible impact. The risks identified are summarized to determine risk control measures. ENVIRONMENTAL, SOCIAL AND 16 GOVERNANCE REPORT 2022

DIGITAL TRANSFORMATION Following the development trend of digitalization and intelligent transformation, SPC builds a two-in-one management system, strengthens digital technology empowerment, and accelerates the process of smart engineering construction. Through the application of the IoT, AI and digital technology, SPC drives the transformation of management mode and the upgrading of core business to achieve the goals of value addition, management efficiency, production optimization, and safety and environmental protection. PROMOTING DIGITAL MANAGEMENT STRENGTHENING DIGITAL REFORM TECHNOLOGY EMPOWERMENT From two aspects, namely system design and facility Digital technology enables business platform construction, SPC promotes the digital transformation of development management and improves its fine management. The robot process automation demand development project Improving the information management realized multiple functions: system —†Organization—SPC established the “leading group and Automatic Automatic Automatic maintenance of promotion office of the Company’s digital and intelligent integrated acquisition of reminder of the material supply expiration of management system” information price system monitoring material supply indicators warranty deposit —† Planning—Compiled and improved the “14th Five-Year Plan” for Information Development of SPC —† System—Revised the Management Measures for the Operation Automatic maintenance of and Application of the SPC Information System. The Detailed Rules Automatic filling material code for Application Management of SPC ERP System and the Detailed of demand plan master data Rules for Emergency Management of SPC Information System entered the publication process. Digital technology enables production Improving information facilities and platforms optimization In 2022, there were 52 informatization projects in SPC, of —† Advanced process control system (APC) which 25 projects were completed with acceptance inspection or —† Automatic control optimization of the whole water and steam process qualified for acceptance and 6 projects were in the online operation —† Simulation training system stage. Site safety control platform Integrated management and control platform for safety and environmental protection Safety and environmental protection data management Digital technology enables risk prevention and control Equipment integrity platform EMOC intelligent change management system helps change risk control —†The production process change, equipment and facilities change, interlock change, etc. are managed on the same platform, solving Maintenance management system the current unreasonable situation of separating the approval process of process changes and equipment changes. Water management information system Informatization of process anti-corrosion to improve chemical unitsĆ anti-corrosion control —†The mechanism of advance warning, weekly analysis, and monthly Deepening application of measurement closed-loop reporting of process anti-corrosion is combined with management information system information technology tools to help the safe, stable, and long-cycle operation of production units. 17 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2022

ACCELERATING THE CONSTRUCTION OF SMART PLANT Promoting the construction of information Promoting the intelligent transformation of integration portal production data In 2022, in accordance with the design principle of “one portal The production portal is promoting the construction of DCS for one discipline” of the smart plant, SPC, through continuous alarm phase IV, intelligent patrol phase IV, and visualized public pipe planning, design, establishment, and improvement of each network system in the plant. discipline information integration portal, uniformly displayed the data Digital transformation projects in the production field in 2022: required by the discipline in one portal, eliminated the information island, thus effectively promoting the sharing and utilization of data resources, improving the level of informatization application of various disciplines, and enhancing the work efficiency of business personnel. The production and equipment discipline portals have SPC Production SPC Energy been completed. Unit DCS Alarm SPC Management Isolation Plan (EIP) Management Of Change (MOC) intelligent control System Project system system Production Equipment (Phase IV) discipline portal discipline portal One portal for SPC Energy SPC Intelligent Basic platform of the Digital Dispatching public pipe network one discipline Integration Optimization management system Platform Project Software Project project in the SPC visualization plant Promoting equipment management Sales discipline Safety and informatization environmental portal protection discipline The equipment portal improved the function of the equipment portal integrity platform and built functional sub-modules such as rotating equipment reliability management and equipment operation Explore and apply new digital intelligence environment monitoring system. technology Equipment integrity platform Intelligent product library •The equipment integrity management platform enables big data management of equipment, and timely detection Pilot study on big data application of employee behavior of repetitive and large-scale defects in equipment, realizing the information management of the whole High-altitude intelligent rounds inspection robot process of equipment maintenance •SPC Equipment Integrity Management Platform has launched 222 scheduled affairs, including 21 for Intelligent lab management system for sewage detection comprehensive discipline; 57 for static equipment discipline; 25 for rotating equipment discipline; 52 for Research on intelligent video identification of operational violations electrical discipline; 67 for instrument discipline. —†Exploration of new digital technology Promoting the digitalization of storage and —†Exploration of digital management mechanism transportation logistics —† Logistics—The modern logistics management platform (LMP system) can realize the query of the batch, delivery and storage of The research report Highlighting the” Digital “Transformation and Building the Intelligent Security System of Large the company’s products stored in the external warehouses Petrochemical Enterprises applicated as the Sinopec’s 31st Management Modernization Innovation Result —† Storage and transportation—Intelligent material management platform, video image intelligent analysis, and material movement management ENVIRONMENTAL, SOCIAL AND 18 GOVERNANCE REPORT 2022

SAFE OPERATION AND GREEN & LOW-CARBON DEVELOPMENT 01 Responding to climate change Taking safe development, green and 02 Strengthening safety management low-carbon development as the premise 03 Intensifying environmental and basis for the survival and sustainable protection development of the enterprise, and taking 04 Developing a circular economy “clean, efficient, low-carbon and circular” as 05 Protecting biodiversity the essential characteristics, SPC promotes the green & low-carbon development of the Company and continuously improves the level of intrinsic safety and environmental protection by actively responding to climate change, strengthening safety management, strengthening environmental protection, developing circular economy, and paying attention to biodiversity protection.

RESPONDING TO CLIMATE CHANGE Under the influence of global climate change and green energy transition, and the overall layout of the national “dual carbon” strategy, the Shanghai Municipal Government issued the Shanghai Carbon Peak Action Plan and the Shanghai Carbon Peak Implementation Plan for Industrial Sector in 2022, requiring the strict implementation of the “Hundreds of One” actions for energy saving and carbon reduction, and actively promoting the carbon peak action in key industries such as petrochemicals and chemicals. By comprehensively implementing the concept of green development, actively carrying out energy-saving and carbon-reducing actions, and accelerating green and low-carbon technology research, the Company has improved energy utilization efficiency and continuously promoted green and low-carbon development, providing petrochemical contributions to help China achieve the “dual carbon” strategic goal. STRENGTHEN THE TOP-LEVEL DESIGN TO ADDRESS CLIMATE CHANGE peak National double carbon initiatives pick Increasingly high energy efficiency carbon up speed standards Increasingly stringent national and local Increasing contract fulfillment cost promoting regulations at carbon market in Challenges Target: Achieve significant results in the to Target: Project energy savings of more adjustment of product structure and energy than 30,000 tons of standard coal and Target: Reduce GHG emission intensity consumption structure, reach an internationally carbon emission reductions of more than by 5% in 2025 compared to 2020. advanced level in energy utilization efficiency, 78,000 tons of carbon dioxide equivalent and continuously increase the proportion of non-response in 2023 fossil energy consumption. to Action plan: Develop a Three-Year Action plan: Formulate the Action Action plan: Formulate and implement change 82 actions for energy conservation and Energy Saving and Carbon Reduction Plan for the Carbon Peak and Carbon Action Plan for each of the refining, carbon reduction. Neutrality of SPC, including 10 primary deployment climate chemical, and thermal power divisions. elements and 26 secondary elements. Strategic Short-term strategy Medium-term strategy Long-term strategy —† Established a leading group for the promotion of new energy in SPC. carbon —† Conducted an online presentation on the “Dual Carbon” situation analysis of SPC. —† of Carried out carbon inventory at the national, Sinopec and Shanghai levels in 2021. —† strategy The company formulated 82 actions for energy saving and carbon reduction for the first time and completed 57 actions, with an energy saving of 36,600 tons of standard coal. Implementation peak ENVIRONMENTAL, SOCIAL AND 20 GOVERNANCE REPORT 2022

REDUCE GHG EMISSION The Company has been actively promoting the carbon peak initiatives and has achieved significant energy savings and carbon reduction. Total CO2 emissions in 2022 decreased by 11.76% year-on-year, with direct emissions down by 10.30% and indirect emissions down by 41.35%. CO2 emissions in 2022 Change trend of CO2 emissions in last three 10,000 tons years Total emissions: 8.3544 million tons 1200 2020 1054.11 2021 977.32 1000 946.75 902.30 2022 Direct emissions (scope 1): 835.44 809.37 8.0937 million tons 800 600 Indirect emissions (scope 2): 260,700 tons 400 76.79 CO emission intensity: 1.82 200 2 44.45 tons/RMB 10,000 26.07 0 Total emissions Direct emissions Indirect emissions (scope 1) (scope 2) Carbon asset trading and management Ǻ Implement carbon budget, carbon quota surplus and deficit, and trading strategy. Make a carbon emission budget at the beginning of the year according to the production schedule, and forecast surplus and shortage and trading strategy according to the allowance allocation scheme. The Company will conduct monthly carbon inventory, track the progress of allowance usage, and participate in government auctions, CCERs, or allowance purchases at the appropriate time according to market conditions and compliance requirements. Ç» In September 2022, the Company participated in the government auction in Shanghai Carbon Market and purchased 100,000 tons of carbon quota at the base price for future (2023) carbon performance. In December, the Company fully completed the performance and settlement of the carbon quota in Shanghai Carbon Market (quota criterion) in 2021. Ǽ The Company actively participated in the transaction of green certificates, fulfilled its social responsibility, and purchased 10,000 green certificates. 21 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2022

PROMOTE LOW-CARBON ENERGY TRANSITION The Company actively promotes low-carbon energy transition, and the total energy consumption has decreased significantly. In 2022, the total industrial energy consumption fell by 17.98% year on year, of which fuel energy consumption decreased by 12.09% year on year, achieving the yearly planned indicators. Variation tendency of total industrial energy consumption in recent three years 692.0 Total industrial energy consumption in 2022: 632.3 01 518.6 5.186 million TCE. Energy consumption per unit output value in 2022: 02 1.092 TCE/RMB 10,000 2020 2021 2022 Total industr ial e ne rg y In 2022, the Company’s total industrial energy consumption was 5.186 million TEC, of which fuel consumption (10,000 TCE) energy consumption (excluding FCC coke burning) accounted for 56.52%, raw material consumption accounted for 32.53% and loss and others accounted for 10.95%, with an investment in energy conservation of RMB 181.56 million. In the past three years, the Company’s main energy consumption has shown a continuous downward trend, and the energy consumption structure has been gradually optimized. SPC’S MAIN ENERGY CONSUMPTION IN RECENT THREE YEARS Indicators Unit 2020 2021 2022 Coal consumption 10,000 TCE 189.84 175.21 173.52 Electric power consumption 10,000 kWh 334818 306914 266993 (excluding external power supply) Crude oil 10,000 tons 1467.2 1377.63 1045.33 consumption Natural gas 3 100 million m 5.55 5.19 4.67 consumption Comprehensive energy consumption KOE/ton 49.86 50.98 57.40 of refining ENVIRONMENTAL, SOCIAL AND 22 GOVERNANCE REPORT 2022

FIVE ACTIONS FOR CARBON PEAK Improvement of the supply capacity of clean Transformation and upgrading of the structure of and low-carbon energy the refining and chemical industry The Company promoted photovoltaic power The Company promoted the intensive and green development of refining and chemical businesses, shut down outdated generation projects, such as large-tow roof-distributed production facilities and carried out comprehensive photovoltaic power generation and warehouse roof-distributed photovoltaic power generation in Huanjiang technological upgrading and quality upgrading projects in an orderly manner. Road. The Company adjusted the product structure. The first phase The generating capacity of the roof photovoltaic power of the 48K large-tow carbon fiber project has been put into generation project for a switchgear room of 220,000 kV production, and the 250,000 tons/year styrene thermoplastic in the west area of the Thermal Power Department was elastomer project proceeds orderly. 480,000 kWh in 2022. The Company obsolete 78 motors with low energy efficiency in operation and replace the ones with class-I energy efficiency The hydrogen supply center was put into operation . and obsolete 12 transformers with low energy efficiency and replace the ones with class-I energy efficiencyEnergy conservation and carbon reduction campaign The Company completed energy conservation projects, such as the waste heat recovery system renovation of heating furnaces, the renovation of lean/ rich amine heat exchangers for 3# diesel oil hydrogenation solvent regeneration system, and the renovation of heating furnace linings. The Company completed the through-flow reconstruction of 5# and 6# units, and the power supply coal consumption of 5-6# units decreased by 43g/ kWh compared with that before the renovation, with an increase in generating capacity of 7.48 million kWh; the Company also completed the energy- saving reconstruction of four fans of 5# furnace and four feed pumps of 6# unit, saving about 3 million kWh of electricity per month. The Company carried out CO capture and utilization, and 41,293 tons of crude CO has been recovered from EG unit in 2022, which could be used to 2 2 produce food-grade CO2 products. The Company promoted the industrial application of low-NOx new technology for environmental protection and energy conservation in cracking furnaces. If a cracking furnace runs 8000h/year, 740.4t/year of fuel gas can be saved. The Company promoted the renovation of thermoelectric units to use clean fuel and improve efficiency. The carbon emission intensity for the power supply is expected to decrease from 0.83tCO2/MWh to 0.36tCO2/MWh. Optimization and adjustment of the Green and low-carbon action energy structure for all The Company achieved a generating capacity The Company strengthened the publicity of 9.66 million kWh by biomass fuel blending and and guidance of green and low-carbon and coupling, thus reducing CO2 emissions by 17,600 carried out cloud publicity of the Company’s tons, which is equivalent to planting 950,000 trees. “carbon peak and carbon neutrality” The Company steadily increased the proportion situation for the first time. of “green electricity” used, and purchased green The Company establishes the concept certificates equivalent to wind electricity of 10 million of green and low-carbon production and kWh in 2022, which is equivalent to a reduction of advocates a green and low-carbon lifestyle. 8,719 tons of CO2 emissions. 2020-2021 Advanced Group for Energy Conservation and Emission Reduction by Shanghai Energy Conservation Association honors The Company won the “Best Deal Award” in the 2021 member evaluation and the selection of Relevant related awards conducted by Shanghai Environment and Energy Exchange in 2022. The Company won the Outstanding Organization Award in the knowledge contest of the Energy Conservation Week conducted by Shanghai Energy Conservation Association in 2022. awards and 23 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2022

STRENGTHENING SAFETY MANAGEMENT PURSUING SYSTEMIC THINKING AND IMPROVING THE INTRINSIC SAFETY LEVEL In 2022, the Company thoroughly implemented General Secretary Xi Jinping’s important remarks on work safety, took HSE management system thinking as a guarantee to improve the Company’s intrinsic safety level in strict accordance with the Work Safety Law and Shanghai Administrative Rules on Work Safety, and upon the continuous implementation of the requirements of the Sinopec’s Three-year Action Plan for Special Rectification on Work Safety, the Implementation Plan of the Three-year Action for Special Rectification on Work Safety of Shanghai and other documents. The Company firmly establishes the idea that “all accidents can be avoided” and adheres to the problem-oriented principle to effectively identify safety risks and hidden dangers, actively carry out special rectification, constantly enhance the emergency response capacity, strengthen all employees’ responsibilities for work safety, and prevent and reduce work safety accidents. Number of Occupational Serious accident Deaths in the employees health involving serious line of duty receiving training examination consequences rate on occupational safety and health 0 0 100% 45910 Fully implementing HSE management system to form a safety management and operation mechanism In 2022, leaders at all levels of the Company took the lead in publicizing and implementing the HSE management system and took serious measures to ensure the effective operation of the HSE management system, forming a safety management and operation mechanism with each performing his own duties and responsibilities and coordinated operations; established dynamic management of safety factors to achieve closed-loop management of each safety problem and realize the intrinsic safety of production management. Strengthening work safety accountability to ensure the intrinsic safety of personnel quality In 2022, the Company strengthened the work safety responsibility of all employees by focusing on “Three Studies” and “Three Fulfillments”; broke down and implemented the work safety responsibility system, and strictly implemented the safety scoring and assessment of all employees against violations of rules and regulations to ensure the intrinsic safety of personnel quality. Risk investigation and elimination of potential hazards After the June 18th incident took place at 1# EG unit of SPC Chemical Division, SPC steadily and orderly promoted the emergency disposal, restorative maintenance and resumption of production, and the whole industrial chain resumed normal operation at the end of September. The preliminary investigation of the “June 18th” incident showed that the incident was identified as a general incident. Based upon relevant regulations, SPC actively cooperated to carry out the incident investigation, deeply learned lessons from the incident, comprehensively performed risk investigation and elimination of potential hazards, and built a firm defense line of work safety. 01 01 Thoroughly Fulfilled the safety understood and responsibilities of Party and administration heads the first responsible followed the national signed the HSE Responsibility person at all levels spirit of work safety Letter of the Company 02 02 All employees signed the HSE Commitment Letter Comprehensively understood, publicized, and THREE Fulfilled the safety followed the Work Safety THREE responsibilities of all Law and the Regulations of FULFILLMENTS STUDIES Shanghai Municipality on employees Responsible units and Work Safety “WORK SAFETY MONTH” departments signed the Work ACTIVITIES Safety Responsibility Letter Systematically Fulfilled studied safety feature accountability Continuously carried out films “Work Safety Month” activities 03 03 ENVIRONMENTAL, SOCIAL AND 24 GOVERNANCE REPORT 2022

Strengthening the production process safety management to enhance the level of process safety control In 2022, the Company prepared the post manual of “Five Understandings, Five Capabilities, and Five Abilities” for work safety to strengthen the intrinsic safety management of the production process; carried out the safety risk assessment of the production process for all employees, established and improved the risk lists at all levels; and established a comprehensive alarm management system to systematically improve the level of production process safety control. Be Treating safety risks and hazards in a centralized manner to lines able t iscip o o s d bs improve the prevention and control of hazardous chemicals es er oc ve p r t e n he t h ratio Be ca s pe pa a e o bl f In 2022, the Company formulated the Plan for Safety Risk r v ion e o et e c t f a y s u b b o d no di Management and Centralized Hazard Treatment of Dangerous o r r s o f p s m c t o es al i i c Un t p Chemicals of SPC, developed a digital intelligent control platform for l e l e r o der y l i bp st a n b a n d s c a n e a p a i e ha n a the dual prevention of graded risk control and hazard identification e c a s t o g ra d l y s r o l ct ha s B e e n er z i s B d h is a and treatment at the enterprise level, carried out the “Look Back” n c ti r d U t e cs action for the special treatment of hazardous waste, and improved the s B o n n t Job Description w e i a t e a l a level of dual prevention and control of hazardous chemicals. u l t m m Manual of Five U k—b l g a n a r e e e s d e t o t r t r t s n Understandings, Five o r e u o t y f y s n s e o c s e t d n i n m Capabilities, and Five a i B b d q n a e n e u n e s r d g g a i Abilities for Work i s c e a r t u p t p r s h a v e r q m e p d e e c e n m e r Safety e t a a e d t n r p o i b t f n i l h m o U nne e me i c o o l l p f f a o c b a e l q e b t s o s i p a s a i ur Innovating the operation supervision and inspection mode s c dradnats dn m p d e r e sn U s i B oital edn e c to ensure the intrinsic safety of on-site operation o t uger dnatsr n i e t l p lb e n i a s eB noitacifitnedi ksir fo B In 2022, the Company formulated eight operation management s elbapac e noi B systems including the Detailed Rules for the Management of Work tal a e ug elb er g s ot nitalo o pot Permits of SPC, innovated the on-site operation supervision and iv morf sreht inspection mode, launched the 5S standardized management pilot, and adopted the scientific improvement methodology to ensure the Carrying out special renovation of old units to improve the intrinsic safety of the on-site operation environment. safe operation level of equipment 5S implementation procedure Improvement methodology In 2022, the Company formulated the Work Plan for Special Renovation of Old Units for Safety Risk Prevention and Control of SPC, established the renovation plan of “one policy for one unit”; and Requirement Seiri identification implemented the special competition for the stability rate, reliability, and operation rate of production units to improve the safe operation level of units and equipment. Seiton Rational arrangement Improvement Seiso Continuous improvement process Standard Seiketsu finalization Methodological Result Shitsuke thinking Continuously strengthening the management of contractors to ensure that safety accident risks were controllable In 2022, the Company continued to strictly review the qualification of contractors, strengthened the assessment of contractors’ violation of regulations, completed the HSE performance assessment of contractors’ key positions, and ensured safety accident risks were controllable. The Company established the concept of “emergency response of all employees”, improved the emergency plan system, strengthened the emergency fire drill, and enhanced the ability of grass-roots employees to deal with safety accidents. 25 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2022

INTENSIFYING ENVIRONMENTAL PROTECTION The Company strictly followed the laws and regulations related to environmental protection and LEADING Green enterprise creation actively responded to the environmental protection policies formulated by the State and Shanghai. In 2022, the Company actively fulfilled its main responsibility of environmental protection as an enterprise, continued Key pollution prevention and to promote the development of a green enterprise, control implemented whole-process clean management, strictly controlled its emission of pollutants, continuously improved the environmental monitoring and management system, strived to improve the level of the Company’s green culture, and helped build the vision of a “Leading Domestically, Solid Rad First-class Globally” energy chemical and new material PRIORITIES ioac company. In 2022, the Company’s total expenditure on Water Noise source t environmental protection was RMB 0.28 billion. Atmosphere waste ive Stable and up-to-standard pollution emission Environmental Green Risk SUPPORT monitoring culture monitoring CREATING A GREEN ENTERPRISE Carrying out green enterprise indicator development In 2022, the Company successfully established itself as a green enterprise by focusing on “green development, green production, green energy, green technology, green service, and green culture”. Keeping track of “two lists” The Company formulated the 2022 Green Enterprise Action Plan of SPC and continuously promoted the implementation of the Task Breakdown List for Green Enterprise Creation and the Implementation List for the Green Enterprise Creation Project. The Company completed one item in each of the Task List and the Project List in 2022 and other tasks and items are under continuous progress. Creating “green grassroots” The Company formulated the 2022 Work Plan for the Creation of Green Grassroots of SPC. As of September 21, 2022, it completed the cultivation of 51 green grassroots organizations. ENVIRONMENTAL, SOCIAL AND 26 GOVERNANCE REPORT 2022

CONTROLLING POLLUTION EMISSION According to the environmental protection assessment indexes of the Energy and Environmental Responsibility Letter and the pollutant permit control indexes of the Pollution Emission License, the Company clarified the relevant tasks, broke down the control indexes, and implemented the assessment rules. The total emission of the chemical oxygen demand, ammonia nitrogen, sulfur dioxide, and nitrogen oxides of the main pollutants all met the assessment indexes. MAJOR POLLUTANTS EMISSION INDEX ACTUAL EMISSION Chemical oxygen demand (t) 730 719.32 Ammonia nitrogen (t) 30 11.11 Sulfur dioxide (t) 210 152.02 Nitrogen oxides (t) 1180 954.84 —† The Company formulated the Implementation Plan for SPC to Further Pollution Prevention and Control, in which the prevention and control tasks of water, air, solid waste, noise, and System radiation pollutions were planned, and established a list of projects for further pollution improvement prevention and control from 2022 to 2025 with 14 projects in total. —† The Company carried out 7 ozone pollution prevention and control projects, 4 of which were completed, and the remaining 3 are under progress. actions —† 21 comprehensive environmental improvement projects in Jinshan District were launched, of which 13 were completed. —† The Company focused on improving VOCs treatment facilities, regulating solid waste, and carrying out environmental hazard Special investigations. and —† In 2022, the Company continuously carried out LDAR work and monitored 2.9 million times in total, with a cumulative repair rate of 98.5%. —† The Company recycled and utilized solid waste, with a comprehensive utilization rate of 97.2% in 2022. —† The proportions of outsourced disposal and internal disposal and utilization of hazardous waste accounted for 2.6% and 97.4% Classification treatment respectively in 2022. Comprehensive compliance rate for Disposal Compliance rate of compliance rate of discharged industrial controlled exhaust hazardous waste wastewater 100% 99.99% 100% 27 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2022

STRENGTHENING ENVIRONMENTAL MONITORING Improving environmental risk identification and assessment The Company reassessed environmental risk source indexes. According to the latest assessment, there are 160 environmental risk sources in the Company, which can be divided into four categories, high, relatively high, medium, and low environmental risk sources, without extremely high environmental risk sources. Strengthening the identification and rectification of potential environmental hazards In 2022, the Company identified VOCs treatment facilities and an in-line monitoring system of fixed pollution sources as the key points of treatment, carried out rolling environmental hazard inspections, and reported 7 environmental protection treatment projects. All the reported projects have been completed. Improving water and soil risk management In 2022, the Company continued to strengthen water and soil risk management according to the requirements of the construction of a green enterprise. The Company prepared a list of groundwater monitoring wells and developed a self-monitoring plan; investigated buried storage tanks and abandoned wells, established a list, and declared it for recording; and completed the preliminary investigation of soil pollution in the Suitang Substation plot. Improving environmental risk identification and assessment In 2022, the Company organized the “Meeting on the Preparation of Emergency Response Plans for Environmental Emergencies in SPC”, and required to focus on the preparation of special and on-site response plans, and form practical emergency response cards from them. Strengthening the supervision of radioactive sources In March 2022, the Company’s radiation safety license was approved for renewal and the validity period of the radiation safety license was extended. ENVIRONMENTAL, SOCIAL AND 28 GOVERNANCE REPORT 2022

PROMOTING GREEN CULTURE The Company promoted the concept of green culture and translated it into specific work and actions of employees, established a long-term mechanism for green production and green development, cultivated and practiced green concepts, created a green environment, advocated green office and green lifestyles, and strengthened publicity to create a green development image. Raise employees’ green Improve green awareness production management —† Enhance supervision and inspection —† Promote landscaping efforts —† Set up an environmental protection —† Improve environmental monitoring role model —† Enhance sanitation management —† Carry out theme promotion activities Strengthen external publicity —† Carry out the “Public Open Days” activities —† Strengthen external press campaign —† Enhance community-based publicity 29 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2022

DEVELOPING A CIRCULAR ECONOMY Committed to building a resource-saving and recycling-oriented enterprise, the Company followed the circular economy principle, i.e., “reduction, reuse, and recycling”, in the whole process of resource input, enterprise production, and product consumption and disposal and continuously reduced resource consumption and recycled waste resources via innovative technology R&D and optimized management to achieve sustainable development. SOLID WASTE RECYCLING The Company strictly implemented the newly enacted Law of the People’s Republic of China on the Prevention and Control of Environment Pollution Caused by Solid Wastes and Solid Waste Pollution Prevention and Control Regulations of SPC, strengthened the whole process management of hazardous waste, general industrial solid waste, construction waste, and domestic waste, created a solid waste identification list, actively researched on waste minimization and comprehensive utilization, and promoted the construction of “waste-free factories”. The Company achieved a 100% solid waste disposal compliant rate in 2022. During the “14th Five-Year Plan” period, the Company will research the recycling technology of waste plastics and oil, promote the recycling of resources, and cultivate a new recycling model for petrochemical products. The comprehensive Following the HSE management plan, various departments of utilization rate of solid the Company teamed up to promote solid waste collection and waste reached disposal in a coordinated manner. In 2022, the Company utilized 97.2% 575,251.15 tons of comprehensively solid waste. The disposal rate of outsourced The Company actively promoted the construction of hazard-free recycling facilities to treat sludge and reduce outsourced oil hazardous solid sludge disposal. In 2022, the Company disposed of 16,285.22 waste was tons of hazardous waste outside the plant and 610,254 tons of 2.6% waste lye and hazardous waste in the plant. WATER RESOURCES UTILIZATION The Company compiled the Water Conservation Work Plan of SPC for the “14th Five-Year Plan” to further improve the efficiency of water resource utilization. INDICATOR UNIT 2020 2021 2022 Total industrial energy 10,000 tons 4981 4768 3742 consumption Water consumption per Ton/RMB 10,000 5.49 7.72* 8.14* RMB10,000 output Water consumption per ton of Ton/Ton 0.36 0.40 0.48 oil processed Water discharge per ton of oil Ton/Ton 0.140 0.158 0.145 processed * The water consumption per RMB 10,000 output value in 2021 and 2022 is calculated at the constant price of 2020. If it is calculated according to the old scope, it is 5.43 in 2021. ENVIRONMENTAL, SOCIAL AND 30 GOVERNANCE REPORT 2022

Recycled circulating Industrial water system water upgrades T h e C o m p a n y c a r r i e d o u t T h e C o m p a n y a c t i v e l y i n—d e p t h w a t e r c o n s e r v a t i o n a d o p te d m u l t i p l e m e a s u r e s , transformation projects, optimized the production and operation of water including water intake optimization, pre s sure re duction for wate r fields, transformed water pumps to save energy, increased the proportion supply, reuse of sludge water, leak of make-up water in circulating water, detection of pipeline network, etc., and adopted pipeline pumps and other to reduce costs and optimize the methods to reduce the pressure of operation of sludge water recovery circulating water systems. In 2022, the Company reduced the annual pollutant u n i t. I n 2 0 2 2, t h e C o m p a n y discharge of circulating water by recycled 1.8996 million tons of 524,000 tons, a 25.77% decrease. sludge water. Wastewater system Domestic water pipeline optimization network renovation The Company strengthened T h e C o m p a n y r e n o v a t e d the wastewater system optimization, the domestic water main network, monitored the conductivity of the significantly reducing domestic water MBR feed water and other indicators, leakage. In 2022, it reduced the cost promptly checked and adjusted where of domestic water by RMB 1.64 million. exceeded standards, and regularly The Company successfully acquired cleaned the MBR membrane modules data from primary and secondary offline and replaced them. In 2022, water meters, monitored the changes the Company recycled 5.7977 million in domestic water consumption, and m3 of wastewater, achieving a 41.94% detected abnormalities promptly. recycling rate of wastewater treatment. Action plan for water resource utilization during the 14th Five-Year Plan Period The Company aims to reduce its industrial water consumption by more than 5% compared to 2020, save more than 5 million m3 of water and achieve controlled total amount of water drawn by the end of the 14th Five-Year Plan Period. —† Optimize the direct use of wastewater. The Company studied the feasibility of using the sour water generated by this unit to replace the purified water for water injection at the top of the fractionation column of the FCC unit and the outlet of the rich gas compressor to reduce the total amount of sour water in the whole plant supplied to the sour water stripping unit. —† Strengthen the recycling of condensed water. The Company lowered the amount of demineralized water and the load of wastewater treatment plant, increased the recovery rate of condensed water, and reduced effluent. —† Optimize integration of circulating water system. The Company studied the technical and economic feasibility of applying advanced water-saving technologies, including the defogging process of the cooling column for circulating water and the closed circulating water process, to reduce the evaporation loss of the circulating water system and the amount of make-up water. —† Improve wastewater reuse rate. The Company enhanced the treatment of wastewater discharged outside the wastewater treatment plant, reduced the wastewater discharge, increased the wastewater reuse rate, and strived to achieve the goal of “zero discharge of wastewater”. —† Establish a smart water system. The Company studied the feasibility of establishing a smart water management system for the whole plant to ultimately optimize water resources and realize the intelligent management of the enterprise water system. 31 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2022

EXHAUST RECYCLING The Company established two sets of high-sulfur and low-sulfur gas holder systems, allowing the high-concentration exhaust produced by the production system to enter the gas holder for recycling purposes. By this way, the Company recycled and turned the exhaust passing through desulfurization and other pretreatment facilities into fuel gas. In 2022, the Company recovered 31.56 million m3 of low-sulfur flare gas and 19.22 million m3 of high-sulfur flare gas. The Company adopted a combined recycling and treatment process to reduce the total amount of final treatment pollutants in volatile organic compounds, thus reducing resource consumption. Green maintenance The Company practiced the concept of green maintenance, adhered to the principle of “gas does not go to the sky, oil does not fall to the ground”, optimized the structure of gas sources, strengthened the monitoring of the discharge back pressure flow of the unit, effectively reduced the impact on the operation capacity of the flare gas recovery system, and ensured the maximal recycling of flare gas of the system. Technology upgrading The Company newly introduced a VOCs deep treatment system, which adopts liquid nitrogen cryogenic technology to extend the treatment capacity of tank truck exhaust gas to up to 800m3/hour, improve the collection and treatment of oil and gas in storage tanks, and reduce costs. The Company introduced an desorbed gas layered adsorption equipment to reduce the dust in the desorbed gas and reduce the emission of flare gas. System optimization The Company optimized the start-up combustion chamber of some flare heads and regularly drained the inlet filter and the condensate from the wastewater pipe of the gas holder’s external pipeline, thus effectively saving fuel gas. 5400 2021 4761 2022 4800 4200 3291 3600 3156 3 m 3000 1922 10,000 2400 1763 1800 1478 1200 600 0 Re f i ning f l a r e s t a c k Low sulfur flare gas High sulfur flare gas discharge recovery recovery ENVIRONMENTAL, SOCIAL AND 32 GOVERNANCE REPORT 2022

BIODIVERSITY The Company strictly abides by relevant international and domestic laws and regulations, actively responds to global initiatives and international conventions, including the 2030 Agenda for Sustainable Development and the Convention on Biological Diversity, PROTECTION implements the Opinions on Further Strengthening Biodiversity Protection, strengthens biodiversity protection, and promotes the coexistence of man and environment in harmony. The Company has integrated biodiversity protection into the whole process of its operations, continued to carry out ecological monitoring, maximized the benefits of greenery in biodiversity protection, promoted the construction of “garden factories”, and actively protected natural ecological environments such as wetlands and oceans to build a sustainable world where people and nature dwell in peace. Carry out ecological monitoring The Company continues to improve the ecological monitoring method by integrating multiple functions, including water quality monitoring, ecological monitoring, and environmental protection display, via the ecological park as a carrier to bring the practicality and 1aesthetics of environmental monitoring in alignment with each other. Build a garden plant The Company actively builds garden plants and established a balance system of greenery occupation and compensation, enabling the greenery to swing from reduction to expansion. The Company follows the ecological laws of flora to expand greenery, cultivates new salt- and alkali-tolerant cultivars that could adapt to the environment full of chemical 2 gases, and enriches the plant diversity in the plant area. As of 2022, the Company’s greenery had expanded to 2.909 million m2, with a green coverage rate of 42.2%, making green the distinctive background color of units. Protect the living environment The Company pays attention to reducing the impact of each link of production and operation on the biological habitat environment. It has built a green, eco-friendly wharf with low energy consumption, noise, and emissions. It has also replaced the ship’s fuel generator for power supply with the shore power system, thus reducing the impact of wharf operations on the natural entities in the 3coastal zone and ecological processes. The Company actively contributes to improving the quality of the ecological environment. It has become the first company to produce low-sulfur heavy marine fuel oil in China, providing clean oil products to improve the marine eco-environment and reduce the impact of shipping on it. 33 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2022

FULFILLING RESPONSIBILITIES AND SERVING SOCIETY 01 Product liability performance SPC always keeps its “original mission” 02 Supply chain management in mind and firmly fulfills its responsibilities as 03 Employees’ rights and interests & a central SOE. The Company bravely takes development the core responsibility of the national strategic 04 Dedication to society scientific and technological force and improves the supply capacity of high-end petrochemical products; continues to promote the construction of a responsible supply chain to help the entire supply chain achieve environmental and social goals; respects and safeguards the rights and interests of its employees and promotes the common growth of its employees and itself; and insists on rooting for the greater good, working hard, and making altruistic decisions to give back to society.

PRODUCT LIABILITY PERFORMANCE Following the requirements of the Guiding Opinions on Promoting High-Quality Development of the Petrochemical and Chemical Industry during the “14th Five-Year Plan” Period and aiming at the theme of high-quality development, the Company vigorously developed clean energy products and new chemical materials, established itself as a leader in high-end industries, and made great strides in developing strategic emerging industries such as the new material industry in the region in 2022. FOCUSING ON HIGH-END SUPPLY In 2022, the Company accelerated structural adjustment, focused on the core industry of carbon fiber and its composite materials, actively planned the layout of new and renewable energy industries, and made constant breakthroughs in the fine chemical and new material industries. Large-tow carbon fiber and composite materials The Company successfully put large-tow carbon fiber into production, which will remove China’s current reliance on imports and a longstanding, underserved market and effectively promote the development of China’s carbon fiber and manufacturing industries. In 2022, the Company introduced its large-tow carbon fiber products to various applications, including the “Flying” torch of the Beijing 2022 Winter Olympic Games, the hydrogen-powered Lin-gang T2 public tram, and the Haikou Road Crossing Fenghe Bridge in Qingdao. In 2022, the Company’s 10,000-ton-level 48K large-tow carbon fiber project was selected as one of the “Top Ten National Key Projects of Central SOEs in 2022”. The Company received a commendation letter from the Civil Aircraft Materials Industry Development Alliance. The industry also praised the Company for its outstanding contributions to developing domestically produced large aircraft and its independent and controllable research on civil aircraft materials. VIB gasoline Clean energy C5 separation National In October 2022, the Company took the lead In September 2022, at the “Longzhong standard in producing National VIB gasoline, achieving a Dicyclopentadiene 15th World C5C9 and Petroleum Resin Industry cumulative production of 759,000 tons by the end of Conference 2022”, the Company won the “Champion December. The national VIB gasoline produced by of 2021-2022 Annual Production of Dicyclopentadiene the Company is transported to Minhang Oil Depot in China” title. in Shanghai and Chenshan Oil Depot in Zhejiang via Jinmin Long-distance Pipeline and Chenjin No. 3 Long-distance Pipeline to secure market supply in Shanghai, Zhejiang, and Jiangsu. By the end of May 2022, the Company produced 15,584.8 tons of polypropylene medical materials, including 3,800 tons of high-melting index polyethylene products that can make nucleic acid sampling tubes, hence contributing SPC’s strength to anti-pandemic efforts. 35 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2022

SERVING CUSTOMERS WITH UTMOST SINCERITY The Company strictly abided by laws and regulations, including the Law of the People’s Republic of China on Protection of Consumer Rights and Interests and Anti-Unfair Competition Law of the People’s Republic of China, safeguarded the rights and interests of customers, and fully guaranteed that relevant issues they identify are remedied appropriately. The Company practiced the service concept of “do it now”, constantly improved the customer service mechanism, and continued to pursue customer satisfaction. In 2022, the Company received no product complaints, and the satisfaction its products and services generated had been on an upward trend for four consecutive years. Safeguard customer rights and Improve customer service interests mechanism Take customer opinions seriously Effective communication —† T h e C o m p a n y h a n d l e d c u s t o m e r mechanism complaints and suggestions following the —† The Company carried out customer visit Customer-related Process Management activities through “National Quality Month” Procedures of SPC and Product Sales and other forms; Management Rules of SPC and updated —† it strengthened the connection and relevant procedures promptly according to communication with professional sales their actual needs. companies and dispatch experts to provide on-site services; —† it combined online and offline channels to provide customers with company product and service information. Value customer privacy Track service mechanism —† The Company explained the purpose of the information collection to customers to gain —† The Company responded to customer their permission before collecting necessary service information promptly via a matrix sales-related information. mode l in the for m of a s ale s se r v ice —† Relevant business personnel strictly professional working group; o b s e r ve d th e C o m p a ny’s a p p l i c a b l e —† it optimized parts of user service processes confidentiality regulations by signing a of the BPM platform; confidentiality agreement and accepting —† it continued to improve the e-commerce the supervision by the discipline inspection p l at fo r m to e n h a n c e th e p u rc h a s i n g department. experience. CREATING A QUALITY-CENTERED SPC TOGETHER Following the Law of the People’s Republic of China on Product Quality, Metrology Law of the People’s Republic of China, Standardization Law of the People’s Republic of China, and other laws and regulations, the Company formulated and continuously improved Quality Management Measures of SPC, Product Standard Management Measures of SPC, and other quality management and quality management systems to keep all links that affect product quality in check. In 2022, the Company’s product spot-check passing rate reached 100%, without any recall of sold products due to quality, safety, and health concerns. Improve the quality Rely on standards to Build a corporate quality-management system ensure compliance centered culture —† The Company revised —† It took charge of drafting 1 —† It actively carried out quality 7 q u a l i t y m a n a g e m e n t national standard and 2 industry improvement activities and strived systems and established standards; Improve quality for customer satisfaction; the Ledger for Unqualified —† Formulated relevant management informatization Utilized the “Quality Day” and measures to ensure the compliance Product Process Inspection “Quality Month” activities to guide of its products; —† It enhanced the online application mechanism. all employees to internalize the —† Discussed and reviewed the management of quality instruments, “Customer-first and Quality-agreement standards related to its —† promoted the online approval of compliance management of ex- the quality management process, centered Enterprise” concept. factory products; and —† Revised and issued 4 corporate —† focused on the capacity-building standards of labs. ENVIRONMENTAL, SOCIAL AND 36 GOVERNANCE REPORT 2022

SUPPLY CHAIN MANAGEMENT With the goal of “safety, timeliness, sustainability, and cost-effectiveness”, the Company built a green supply chain and promoted supply chain security to create a win-win situation with suppliers for mutual benefit and a better future. CREATING A GREEN SUPPLY CHAIN Strengthen green Improve the disposal Vigorously promote green warehousing and of waste materials procurement distribution The Company guided suppliers T h e C o m p a n y u s e d g r e e n The Company standardized the to implement green procurement photoelectric energy to minimize its disposal process of waste materials, o f r a w m a t e r i a l s , i n t r o d u c e d carbon footprint and build a “green strengthened the management of more products that meet green and smart” warehousing system. disposal timeliness, carried out special p r o c u r e m e n t s t a n d a r d s to t h e The Company promoted digitization, supervision of waste materials, and platform, and established a traceable standardization, and intelligence to implemented the newly revised Waste green supply chain. create a green, low-carbon, intensive, Materials Disposal Management and efficient distribution model. Measures of SPC. Case: The successful green packaging By promoting green packaging of chemical materials, the Company reduced 4,358 packaging barrels in 2022, saving RMB 217,900. After using liner bags for paint, the Company reduced 24.17 tons of barrels for storing hazardous waste, saving RMB 96,700. In 2022, the Company established business relations with 897 suppliers from 24 provinces (municipalities). All the above suppliers are managed according to the relevant supply chain management system of the Company. Number and proportion of suppliers by region 300 35.00% 263 29.32% 30.00% 250 220 24.53% 25.00% 200 20.00% 150 110 15.00% 12.26% 100 10.00% 52 49 57 5.80% 5.46% 6.35% 34 33 50 5.00% 3.79% 24 3.68% 17 2.69% 15 13 10 1.90% 1.67% 1.45% 1.11% 0.00% 0 Shanghai Jiangsu Zhejiang Shandong Beijing Guangdong Liaoning Anhui Hebei Hubei Henan Fujian Others Province Province Province Province Province Province Province Province Province Province Number of suppliers Proportion of suppliers Note: The number and proportion of suppliers from other provinces (municipalities) in the above chart are as follows: Hunan Province (9,1.00%); Jiangxi Province (7,0.78%); Shaanxi Province (7,0.78%); Sichuan Province (7,0.78%); Heilongjiang Province (7,0.78%); Tianjin (6,0.67%); Gansu Province (6,0.67%); Chongqing (4,0.45%); Guangxi Province (1,0.11%); Hainan Province (1,0.11%); Ningxia Province (1,0.11%); Yunnan Province (1,0.11%). 37 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2022

PROMOTING SUPPLY CHAIN SECURITY In 2022, the Company compiled the Implementation Rules for the Management of Material Loading and Unloading Operations, revised the Quality Management Measures of SPC for Material Supply, Supervision Management Measures of SPC for Equipment and Material, and Inspection Management Measures of SPC for Material Quality Inspection and Acceptance, and defined the job responsibilities and requirements of each unit (department) in supply chain security management from the system level. The Company strictly prescribed the access mechanism for Optimize supplier the suppliers, comprehensively carried out supplier qualification compliance review, focused on promoting HSE system compliance access rules review, and improved supplier safety awareness and skills. The Company revised and improved the supplier assessment Improve supplier management method, ensured the proper alignment of assessment results and sales, and pushed top-notch HSE vendors to expand evaluation and grow. The Company carried out in-depth supplier safety scoring and promoted independent safety management of suppliers under the Partner Management Measures of SPC. Based on the existing system certification of each supplier, Strengthen supplier the Company organized and conducted the inspection and audit of the establishment and operation of the supplier system every three exit management years and removed all suppliers found to be severely non-compliant out of the system. The Company prioritized procuring products from companies Deepen supplier with special equipment featuring energy and water conservation, eco-friendliness, and work safety. The Company comprehensively responsibility checked the qualifications of suppliers of hazardous chemicals procurement and improved the supply chain’s safety and reliability from the procurement source. The Company developed risk management measures in the Strengthen supply procurement, transportation, and storage of hazardous chemicals, actively promoted the use of the Easy-logistics platform for chain risk control suppliers, effectively managed and controlled the supply risks of hazardous chemicals, and improved supply chain security. ENVIRONMENTAL, SOCIAL AND 38 GOVERNANCE REPORT 2022

EMPLOYEES’ RIGHTS AND INTERESTS & DEVELOPMENT EMPLOYEES’ RIGHTS AND CARE FOR EMPLOYEES INTERESTS The Company abides by the Trade Union Law of the People’s Republic of China and other laws and regulations and establishes SPC abides by the Labor Law of the People’s Republic of China and and improves a diversified mechanism for daily consultation and other laws and regulations, signs labor contracts with employees as per communication between the management and employees. The the law, and never terminates the labor relationship with employees unless Company conducts in-depth research on the demands of employees under specific conditions stipulated by the law; SPC has the responsibility for and takes different care measures for the needy, retired, and young. reviewing and confirming its employment practices and system each year_and strictly abides by the Provisions on the Prohibition of Using Child Labor and The Company learns the demands of employees through policies on the prohibition of forced labor to prohibit the use of child labor and multiple channels and improves its feedback mechanism. forced labor; SPC respects and safeguards the rights and interests and equal opportunities of its employees and protects their privacy. The construction The Company offers fair opportunities in employment, promotion, etc. of carriers, including trade unions Including: Employees aged and workers’ female employees 30 and below congress. Connect with Research on Number of employees in 2022 8007 1462 1054 grassroots ideological trends employees and among young visit their families. employees. The Company of fers fair employment and promotion opportunities for vulnerable groups, including women and the disabled. In 2022, the Company hired 180 female managers, Management accounting for 12.31% of the total number of its female employees, which is close to the ratio (12.7%) of its overall management personnel to the total number of employees. In 2022, the Company employed 95 people with disabilities. The Company provided 100% protection of rights and interests for its employees Implement employee proposals and meet employee demands. joined the have five social trade union signed collective insurances and one housing fund 100% contracts Keep plant affairs transparent 100% to receive feedback on service 100% effectiveness from employees. implemented a entitled to a non-discrimination vacation allowance Precisely implement policies for different categories of policy 100% employees and provide comprehensive care and assistance. 100% Enforce policies for employees at different levels, precisely help the needy, offer support to the retired, and deliver results for the young. The Company implements a fair and incentive remuneration policy Leverage supplementary medical insurance and employee Implement support and mutual aid fund to create multiple layers of safety net Improve HR a salary Increase Offer individual digital platform distribution monthly reward rewards for key for employees. empowerment. system based levels. tasks. on job value. Actively promote practical projects to serve employees, including “staff huts” and cultural and sports venues. Strengthen the Offer well- Offer timelier Enhance the accuracy of targeted orientation of incentives. incentives. incentives. incentives. Respond quickly to the needs of workers by providing them with relief supplies during the COVID-19 pandemic. 39 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2022

EMPLOYEE HEALTH EMPLOYEE GROWTH The Company abides by the Work Safety Law of the People’s The Company followed the Vocational Education Law of Republic of China and Law of the People’s Republic of China on the the People’s Republic of China and other laws and regulations, Prevention and Control of Occupational Diseases and other rules implemented the project of building a talent-rich enterprise and the and regulations, establishes a comprehensive health management project of upskilling employees, and improved the staff training system mechanism, and devotes itself to protecting the physical and mental and the fair, just, and diversified promotion channels. health of its employees. Establishing a fair, accurate talent introduction, education, and selection mechanism. Establishing a comprehensive health management system to promptly identify, evaluate, and eliminate occupational Establish three major sequences, i.e., health hazards management, specialized technology, and skills operation, and create three corporate ladders. Whole process Control risk Introduce mature The Company established a The Company identified and talents leading group for comprehensive strictly controlled occupational health management to pull Shore up for the weak health hazards from the source together the strength of multiple points of the talent through routine occupational departments to comprehensively pipeline disease and hazard evaluation, manage employees’ health and daily occupational disease Recruit graduates provide all-inclusive protection, and hazard monitoring and from source prevention and investigation, comprehensive Implement a five-year control and process tracking physical examination, etc. growth plan to follow-up diagnosis and treatment. Line up horizontal flow channels and increase opportunities for diversified development. Set out the mechanism of characteristic cultivation, selection, “Three simultaneities” Point-to-point and reserve of talents for different groups. The Company rigorously Relevant departments of It carried out LII (Leadership Insight Inventory) and implemented the “three the Company monitored Leading MR (Leadership Readiness) tests and established simultaneities” system employees with abnormal cadres a “selection, cultivation, and retention” system for of occupational health. It health conditions or high cadres based on the competency model. designed and constructed health hazards on an ad hoc It improved the assessment and appointment occupational disease basis, routinely monitored system of chief experts and experts, implemented protection facilities and their conditions, and Expert closed-loop management of experts, and simultaneously put them into provided timely diagnosis constantly expanded the high-end talent pool. service for each construction and treatment. project. Frontline It created an “employee innovation studio” and workers cultivated craftsmen in Shanghai. The Company scored full marks in the detection rate of occupational disease hazard factors, the 100% occupational health examination rate, and the Female intervention rate of occupational contraindications It promoted the advanced cultivation of female and other risk factors in 2022. employees workers. It cultivated young experts, implemented the T he Company maintained a 0% rate of Youth “Sailing Plan”, and set up a “young and middle- 0% occupational disease incidence in 2022. aged talent class” and “young cadre class” to train young cadres. ENVIRONMENTAL, SOCIAL AND 40 GOVERNANCE REPORT 2022

DEDICATION TO SOCIETY PROMOTING COMMUNITY DEVELOPMENT The Company abided by the Law of the People’s Republic of China on Enterprise Income Tax, Interim Regulations of the People’s Republic of China on Value-added Tax, and other laws and regulations, paid taxes in good faith, established an all-round cooperation mechanism with neighboring communities, and contributed to China’s overall plan for economic growth; According to the Environmental Protection Law of the People’s Republic of China, the Measures for the Disclosure of Environmental Information by Enterprises and Public Institutions, and other laws and regulations, the Company disclosed corporate environmental information to residents, attached great importance to public opinion response, and promoted understanding through communication. The Company established a multi-level and all-round communication and cooperation mechanism with surrounding stakeholders. Undertake the strategic tasks entrusted by the State-owned Assets Supervision and Central government Administration Commission of the State Council and others. Accept the supervision of the Shanghai Municipal Development and Reform Commission, Shanghai Shanghai Economic and Information Commission, Shanghai Municipal State-owned Assets Supervision and Administration Commission, and Shanghai Municipal Bureau of Ecology and Environment, and undertake major tasks assigned by them. Jinshan, Pinghu and other regions Establish a joint development committee. Neighboring communities “Xinlianxin” Regional Party-building Joint Conference The public Hold “Public Open Days” activities. Regularly hold regional linkage development symposiums Under the framework of the joint development committee, the Company, Shanghai Jinshan District People’s Government, and Shanghai Chemical Industry Park regularly held regional linkage development symposiums to formulate and implement linkage development work points, undertook critical decision-making consulting topics in Jinshan District every year, and participated in regional development strategic planning. The Company actively supported the national strategy and aligned its development with that of the nation. The Company takes “building a world-class clean energy chemical company” as its positioning and development vision Serve the carbon It implemented the Shanghai Carbon Peak Implementation Plan, formulated and implemented the Carbon Peak Action peak and carbon Plan of SPC Before 2030. neutrality strategy Cooperated with surrounding partners, and built a hydrogen energy industry chain and industrial clusters based on the hydrogen energy joint laboratory. It completed the “bottleneck” technical research task assigned by the superior governments, overcame critical Serve the industry technological issues in carbon fiber manufacturing, and put it into mass production. chain and supply It planned to build a national high-end new material scientific and technological innovation consortium demonstration chain security base. strategy 41 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2022

The Company promoted the development of surrounding areas by leading industrial upgrading, paying taxes in good faith, and creating local job opportunities. The Company invested in industrial upgrading, building green chemical industry, carbon fiber, advanced materials, new energy, and other industrial clusters with formidable international competitiveness to help Shanghai implement the north-south transformation development strategy. RMB The Company established 136.65 a c o m p l e te t a x p a y e r s e l f- 93.08% inspection and internal control 100 million mechanism and generated a tax bill of RMB 13.665 billion yuan in The Company actively created jobs for the 2022. surrounding areas, achieving a local employment rate of 93.08% in 2022. The Company served the surrounding areas and peers regarding infrastructure, science popularization, training, material supply security, etc. The Company leveraged its power supply, The Company opened the SPC Exhibition water supply, wastewater treatment, and other Hall to the public, participated in many activities, facilities to provide services for neighboring science including Jinshan Science and Technology communities and included its environmental Festival and various exhibitions, where it displayed monitoring points in the Shanghai monitoring education cutting-edge scientific and technological Infrastructure network. Popular achievements s for The Company provided comprehensive supply The Company was tasked with guaranteeing service training services for SGPC, Sinopec Shanghai the supply of refined oil and key plastic raw O f fshore Petroleum Bureau, other fellow materials for surrounding areas and maintaining companies relevant government departments, the normal operation of society at a fraught Training and colleges and universities Responsibility guaranteed moment during the COVID-19 pandemic The Company seized opportunities in “Public Open Days” and other events to provide science education to surrounding primary and middle schools. ENVIRONMENTAL, SOCIAL AND 42 GOVERNANCE REPORT 2022

CONTRIBUTING TO PUBLIC WELFARE UNDERTAKINGS The Company has engaged in many demand-driven, result-oriented public welfare projects to fulfill the responsibility of large state-owned enterprises in rural revitalization, education assistance, and community aid; The Company spent decades creating, constantly reforming, and innovating the volunteer service brand “Starry Sky”. Inherit and promote “Starry Sky”, a volunteer service Invest in rural revitalization, education assistance, and brand other public welfare undertakings Since establishing the “Starry Sky” volunteer service The Company stayed committed to helping the needy in team in 1996, the Company has always been adhering to the underdeveloped and surrounding areas and continued investing volunteerism of “dedication, friendship, mutual assistance, and in rural revitalization, education assistance, consumption progress”, constantly exploring and improving the organization assistance, etc., enabling people in underdeveloped regions to and management mechanism, and actively improving the enhance their self-sufficiency skills. service quality. ADVOCATE AND ENCOURAGE EMPLOYEES TO BUILD “A HIGH-QUALITY MIDDLE SCHOOL DONATE HEMATOPOIETIC STEM CELLS. WITH THE HIGHEST ELEVATION” In 2015, Mao Jun, an employee of the Company, established the The Company provided “one enterprise on one school” volunteer team of “Xin Youth Home” of Jinshan District. By 2022, support for Baingoin County Middle School in Nagqu Town, the number of Jinshan District stem cell volunteers increased Tibet Autonomous Region. From digitization, library, gymnasium, from 5481 to 8638, and the number of donors increased from 21 and other hardware, to teacher training, “SPC Chaoyang to 49 cases. Mao Jun was named “the most beautiful volunteer” Scholarship”, and “one-on-one” hand-in-hand fund donations, it by the Publicity Department of the Central Committee of the invested in many aspects to build “a high-quality middle school Communist Party of China and the Office of Central Guidance with the highest elevation”. Commission on Building Spiritual Civilization. The Shanghai Conference Center and Jinshan Hotel, During the COVID-19 pandemic, the Company participated owned by the Company, provided logistical support for the in numerous voluntary services, including nucleic acid Shanghai medical team fighting the COVID-19 pandemic. testing, errands, and distribution of supplies. In 2022, the Company 3,932 In 2022, the Company In 2022, the 9.94 In 2022, the Company 76 38,759 organized 76 volunteer provided various Company volunteered invested RMB 9.94 person-times hours million service projects volunteer services 38,759 hours to million to support in neighboring to 3,932 members serve neighboring the development of communities. of neighboring communities. neighboring areas and communities. communities 43 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2022

SPC ESG PERFORMANCE TABLE ENVIRONMENTAL PERFORMANCE POLLUTANT DISCHARGE_ Indicators Unit 2022 2021 2020 Chemical oxygen demand (COD) emissions Ton 719.32 671.09 987.23 Ammonia nitrogen emissions Ton 11.11 26.23 45.22 Exhaust emissions 100 million m3 405.36 419.32 526.71 Sulfur dioxide (SO2) emissions Ton 152.02 199.76 210.18 Nitrogen oxide (NOx) emissions Ton 954.84 1067.59 1224.05 Hazardous waste emissions 10,000 tons 1.63 1.65 1.68 Non-hazardous waste discharge 10,000 tons 59.18 70.54 74.41 ENERGY CONSUMPTION_ Indicators Unit 2022 2021 2020 Total industrial energy consumption 10,000 TCE 518.6 632.3 692.0 Comprehensive energy consumption of industrial output TCE/RMB 1.092 0.991 0.743 value 10,000 Natural gas consumption* 100 million m3 4.67 5.19 5.55 Coal consumption 10,000 tons 173.52 175.21 189.84 Crude oil consumption 10,000 tons 1045.33 1377.63 1467.2 Comprehensive energy consumption of refining KOE/ton 57.40 50.98 49.86 Electric power consumption 10,000 kWh 266993 306914 334818 WATER RESOURCE Indicators Unit 2022 2021 2020 Total industrial water intake 10,000 tons 3742 4768 4981.15 Water consumption per RMB 10,000 output value Ton/RMB 10,000 8.14* 7.72* 5.49 Reuse rate of industrial water % 98.05 97.83 97.95 Water consumption per ton of oil processed Ton/Ton 0.48 0.40 0.36 Water discharge per ton of oil processed Ton/Ton 0.145 0.158 0.140 * The water consumption per RMB 10,000 output value in 2021 and 2022 is calculated at the constant price of 2020. If it is calculated according to the old scope, it is 5.43 in 2021. GHG EMISSIONS AND MANAGEMENT_ Indicators Unit 2022 2021 2020 Total carbon dioxide emissions 10,000 tons 835.44 946.75 1054.11 -Scope 1 emissions 10,000 tons 809.37 902.30 977.32 -Scope 2 emissions 10,000 tons 26.07 44.45 76.79 Carbon dioxide emission intensity Ton/RMB 10,000 1.82* 1.53* 1.41 * The carbon dioxide emission intensity in 2021 and 2022 is calculated at the constant price of 2020. If it is calculated according to the old scope, it is 1.06 in 2021. ENVIRONMENTAL, SOCIAL AND 44 GOVERNANCE REPORT 2022

SOCIAL PERFORMANCE EMPLOYMENT AND TRAINING Indicators Unit 2022 2021 2020 Total number of employees persons 8007 8230 8466 -Number of male employees persons 6545 6656 6758 -Number of female employees persons 1462 1574 1708 -Number of employees aged 30 and under persons 1054 796 702 -Number of employees aged 31 to 50 persons 3477 3989 4518 -Number of employees aged 51 and over persons 3476 3445 3246 -Total number of non-regular or dispatch workers persons 153 164 168 -Local employment rate % 93.08 91.38 89.32 Employee turnover rate * % 0.30 0.29 0.23 -Turnover rate of male employees % 0.22 0.23 0.18 -Turnover rate of female employees % 0.07 0.06 0.05 -Turnover rate of employees aged below 30 % 0.24 0.19 0.08 -Turnover rate of employees aged 31-50 % 0.06 0.07 0.13 -Turnover rate of employees aged over 51 % 0 0.03 0.01 Signing rate of employment contract % 100 100 100 Coverage of labor contracts % 100 100 100 Coverage of social insurance % 100 100 100 Coverage of anti-commercial bribery training % 100 100 100 * The above-mentioned employee turnover rates are all domestic data, and the Company has no employees abroad. OCCUPATIONAL HEALTH _ Indicators Unit 2022 2021 2020 Annual employee injury mortality rate % 0 0.0120 0.0116 Lost days due to work injury day 3540 3950 1918 Incidence rate of occupational diseases % 0 0 0 Occupational safety and health training personnel Person-time 45910 51839 29904 Occupational health examination rate % 100 100 100 SUPPLY CHAIN _ Indicators Unit 2022 2021 2020 Tendering and purchasing rate % 88.38 89.74 89.77 Direct supply rate of manufacturers % 99.66 99.77 99.62 Ratio of suppliers passing the ISO 14000 environmental % 65.73 64.60 63.50 management system certification 45 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2022

SAFETY Indicators Unit 2022 2021 2020 Major fire and explosion accident case 0 0 0 Major environmental pollution accident case 0 0 0 Major occupational hazard accident case 0 0 0 Major chemical spill accident case 0 0 0 ECONOMIC PERFORMANCE Indicators Unit 2022 2021 2020 in RMB 100 Operating revenue 825.18 892.80 747.05 million in RMB 100 Total profit -36 26.48 5.74 million in RMB 100 Total assets 412.43 470.39 447.49 million in RMB 100 Total taxes 136.65 144.89 151.19 million Number of invention patent applications piece 82 81 50 Customer satisfaction % 99.11 98.70 98.26 One-time resolution rate of customer service telephone % 100 100 100 complaints Product sampling pass rate % 100 100 100 ENVIRONMENTAL, SOCIAL AND 46 GOVERNANCE REPORT 2022

WRITTEN COMMENTS ON ASSESSMENT OF CORPORATE ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT No. Title of report 2022 Annual Environmental, Social and Governance Report Company name Sinopec Shanghai Petrochemical Company Limited Located in Jinshan District, Shanghai, as the holding subsidiary of China Petroleum & Chemical Corporation, Sinopec Shanghai Petrochemical Company Limited (hereinafter referred to as “SPC”) is one of the major integrated comprehensive enterprises of refining and chemical industry in China and also an important production base of oil products, intermediate petrochemical products, synthetic resin and synthetic fiber in China. SPC grows out of Shanghai Petrochemical Complex, which was founded in 1972. In 1993, as a result of standardized restructuring of shareholding system for the state-owned enterprises, SPC became the first limited liability company in China with its shares listed on Shanghai Stock Exchange, the Stock Exchange of Hong Kong and New York Stock Exchange at the same time. As of the end of 2022, SPC has a total of 8,007 employees. In 2022, SPC achieved operating revenue of RMB 82.518 billion, operating profit of RMB -3.6 billion, Company Profile and total tax payment of RMB 13.665 billion. SPC actively strengthens four major businesses of oil refining, chemicals, synthetic resin and synthetic fiber, explores new fields such as carbon fiber, advanced materials and new energy, and builds a “4 +” petrochemical industry cluster. SPC has become the first enterprise in China and the fourth in the world that has mastered the commercial production technology of 48K large tow carbon fiber In 2022, SPC was awarded the title of “Collective with an Outstanding Contribution to Olympic and Paralympic Winter Games Beijing 2022”; Won one gold medal and one silver medal in 2022 National Industrial Vocational Skills Contest; Won the honor of “Shanghai May Day Labor Award”. Adhering to the mission of “Providing Energy for Better Living”, SPC established and implemented the development idea of “shifting the focus from refining to chemicals, chemicals to materials, materials to high-end ones, and petrochemical park to eco-friendly park”, strove to create a “ Domestically Leading, Globally First-class “ company specialized in energy, chemicals and new materials, and contributed to boosting sustainable development of economy, fulfillment of social responsibilities and etc. Report Issue Fifteenth issue of corporate social responsibility report and the first issue of ESG development report. Assessment basis Shanghai municipal group standard Guidelines for Corporate Social Responsibility δT31/01001-G001-2014) Assessment was conducted in writing for SPC’s 2022 Environmental, Social and Governance Assessment method Report (hereinafter referred to as the Report) in accordance with the requirements of Guidelines for Corporate Social Responsibility (T31/01001-G001-2014) to verify and assess the process, substantiality, integrity, comparability, readability and innovation of the Report. Assessment issuesφ SPC’s Report Preparation Working Team makes overall planning and coordinates the preparation work, controls the overall direction and key nodes, and the Board of Directors is responsible for the final approval of the report. The Report identified substantive issues according to national macro policies, international and domestic standards for environment, social responsibility and governance, corporate development strategies, and social concerns, and positioned the Report as an important tool for improving social Process responsibility management, continuously promoting green and low-carbon development, and enhancing the scientificity and effectiveness of corporate governance, with clearly defined functional value orientation. The Report will be presented in electronic and print-out forms and available in Chinese and English versions. The electronic edition will be uploaded to the websites of Shanghai Stock Exchange, Hong Kong Exchanges and Clearing Limited and the website of Sinopec Shanghai Petrochemical Company Limited (http://www.spc.com.cn). 47 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2022

The Report disclosed SPC’s environment, society and corporate governance activities and their performance in 2022. 1. Governance of sustainable development. SPC integrated the ESG concept into its development strategy and whole corporate operation process, strove to modernize its corporate governance system and governance capacity, actively safeguarded the legitimate interests of investors, communities, customers, employees and other stakeholders and explored to strengthen scientific and effective corporate governance and improved the long-term mechanism for its legal and compliance operations. 1) SPC strengthened the compliance management, improved the compliance system, and established “Five-in-one” compliance management pattern. The Company carried out the quizzes of “Integrity and Compliance Management Knowledge” and “Civil Code Knowledge” for law popularization on WeChat, and over 10,000 person times participated in the WeChat quiz for law popularization. In 2022, SPC revised and improved the SPC’s Management Procedures for the Identification and Compliance Evaluation of Laws, Regulations and Other Requirements, the coverage of anti-commercial bribery training reached 100%, and there was no violation of competition laws and regulations or infringement of property rights. 2) SPC has formed a relatively sound anti-corruption system. Through sort-out and investigations of clean governance risks in posts, cultivating a clean governance culture and carrying out the “dual clean governance assistance” campaign, it ensured 100% full coverage of clean governance risk prevention and control and 100% full coverage of anti-corruption warning education. 3) Focusing on national strategic needs, key emerging fields, and the requirements of high-quality development, and investing a total of RMB 131 million in R & D, SPC made breakthrough in the key core technology of large-tow carbon fiber, realized localization of critical equipment for commercial production such as oxidizing furnace and carbonization furnace, and the first production line of 48 K large-tow carbon fiber unit successfully started up and produced on-spec. products. To further stimulate the vitality of Substantiality scientific research and innovation, SPC carried out reform of the scientific and technological system and mechanism, and set up the platforms of research, cooperation and communication. In 2022, SPC applied for 82 national invention patents and 24 invention patents were authorized. 2. Safety operation and green & low-carbon development. Considering “clean, efficient, low-carbon and circular” as the essential characteristics, SPC actively responded to climate change, strengthened safety management, enhanced environmental protection, developed circular economy, and paid attention to biodiversity protection, promoted the harmonious development of the Company with nature and strove to improve the level of intrinsic safety and environmental protection. Total CO2 emissions in 2022 amounted to 8.3544 million tons, decreased by 11.76% on a year-on-year basis; Total industrial energy consumption in 2022 was 5.186 million tons of standard coal, decreased by 17.98% on a year-on-year basis; The total emission of the chemical oxygen demand, ammonia nitrogen, sulfur dioxide, and nitrogen oxides of the main pollutants all met the assessment indexes, with the comprehensive compliance rate of discharged industrial wastewater reaching 100%, compliance rate of controlled exhaust gas reaching 99.99%, and compliance rate of disposal of hazardous waste reaching 100%. In 2022, deaths in the line of duty were 0, and occupational health examination rate was 100%. 3. Fulfilling responsibilities and serving society. SPC has always remained true to the original aspiration and mission, and has firmly fulfilled the responsibility as a central SOE. SPC bravely takes the core responsibility of the national strategic scientific and technological force and improves the supply capacity of high-end petrochemical products; continues to promote the construction of a responsible supply chain to help the entire supply chain achieve environmental and social goals; respects and safeguards the rights and interests of its employees and promotes the common growth of its employees and the company; and insists on providing fuel for better living, working hard, and making altruistic decisions to give back to the society. ENVIRONMENTAL, SOCIAL AND 48 GOVERNANCE REPORT 2022

Aiming at the theme of high-quality development, the Company vigorously developed clean energy products and new chemical materials, played the leading role of a leading enterprise and high-end industries, and boosted the rapid development of strategic emerging industries such as the new material industry in the region in 2022. The Company’s 10,000-ton 48K large-tow carbon fiber project was selected as one of the “Top Ten National Key Projects of Central State-owned Enterprises in 2022”. The compliance rate of product quality spot check in the whole year of 2022 reached 100%, and no sold products were reclaimed due to quality problems, and there were no product complaints. The satisfaction of the Company’s products and services achieved positive growth for four consecutive years. 2) With the goal of “safety, timeliness, sustainability, and cost-effectiveness”, SPC built a green supply chain and promoted supply chain security to create a win-win situation with suppliers for mutual benefit and a better future. 3) SPC regards employees as the power source of enterprise development and devotes itself to building harmonious labor relations. The Company abides by the Labor Law and Trade Union Law, signs labor contracts with employees according to law, respects and safeguards employees’ rights Substantiality and interests and equal opportunities, does not use child labor and forced labor, protects employees’ privacy, implements the project of strengthening enterprises with talents and the project of employees’ quality, and improves the all-staff quality training system and the fair and just diversified promotion channels. By the end of 2022, SPC had a total of 8,007 employees, with a turnover rate of 0.30%. Employees’ labor contract conclusion rate reached 100%, collective contract coverage rate 100%, social insurance coverage rate 100%, occupational health examination rate 100%, occupational health and safety training rate 100%, and employees’ occupational disease incidence rate was zero. 4) By adopting various methods such as holding activities of “Public Open Days” and “Xinlianxin” regional Party-building joint conference, SPC legally disclosed corporate environmental information to surrounding residents, attached great importance to public opinion response, and promoted understanding through communication. In 2022, SPC organized 76 items of volunteer services in neighboring communities, provided 3,932 person times volunteer services in surrounding communities, rendering volunteer services for 38,759 hours and invested RMB 9.94 million to support development of surrounding regions or communities. The report descriptions are detailed and full, presenting a good substantive performance. The main body of the “Report” systematically disclosed SPC’s accomplishment of the core indicators from the perspectives of “Governance of Sustainable Development; Safe Operation and Green & Low-carbon Development; Fulfilling Responsibilities and Serving Society”. Integrity The framework, topics and information content of the Report meet the requirements of “Basic Information, Responsibility Management, Responsibility Performance, Outlook of Responsibility and Appendix of the Report” of T31/01001-G001-2014 Guidelines for Corporate Social Responsibility. The “Report” disclosed the comparative data of multiple key performance indicators such as “total tax payment”, “exhaust emissions”, “total industrial energy consumption”, “total carbon dioxide emissions” and “major fire and explosion accidents” for three consecutive years, which has good Comparability vertical comparability; Besides, the Report also made horizontal comparisons by describing the fact that SPC became the first enterprise in China and the fourth in the world mastering the industrialization technology of 48K large-tow carbon fiber through carbon fiber and hydrogen energy. The “Report” comprehensively expounded the concept, actions and achievements of corporate annual fulfilment of responsibilities, communicated and responded to the expectations and demands of stakeholders from three dimensions, such as governance of sustainable development; safe operation and green & low carbon development; fulfilling responsibilities and serving the society, Readability and the framework structure is clear; Through the “Starry Sky” volunteer service, enthusiastic “rural revitalization, education assistance” and other pictures of fulfilling responsibilities, it enhanced the recognition and readability of the Report. The “Report” demonstrated the scenarios of corporate fulfillment of responsibility with characters, data, real pictures, etc., which enhanced the recognition of the report and had strong readability. 49 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2022

Focusing on the responsibility actions and achievements in terms of the governance of corporate sustainable development; safe operation and green & low carbon development; fulfilling responsibilities Innovation and serving society, the Report manifests the undertakings of central state-owned enterprise to implement macro policies; Through preparation of SPC Management Measures for Corporate Social Responsibilities (2022 revision) and improvement of ESG top-level design, the report management is intensified, thus presenting good innovation performance. The critical information, data and activities of fulfillment of social responsibility disclosed Overall comments by the Report are basically in conformity with Guidelines for Corporate Social Responsibility (T31/01001-G001-2014). Suggestions for 1ȽAdd the horizontal comparison of the industry. improvement 2ȽAdd data on key indicators including social donation, rural revitalization and education assistance to the social performance section. Statement The assessment comments are only specific to the Report. Auditor: Wang Xiulan Assessment agency: Beijiing Sanxing 9000 Certific fica c ca atio Body Co., Ltd. Date of Audit: March, 2023 3 ENVIRONMENTAL, SOCIAL AND 50 GOVERNANCE REPORT 2022

INDEX Titles Subtitles ESGδ2020ε IPIECAδ2020ε Pages Message from the Chairman P01-02 About us P03 Awards and Honors P04 GOV-1 Governance structure P06-07 GOV-2 Communication with GOV-5 P08-09 stakeholders Development strategy P10 Governance of Sustainable ESG risk management SOC2 P11-12 Development B7.1 Integrity and GOV-3 B7.2 P13-14 compliance GOV-4 B7.3 Technological B6.3 P15-16 innovation transformation P17-18 CCE-1 A1.2 CCE-2 Responding to climate A2.1 CCE-3 P20-23 change A2.3 CCE-4 A4.1 CCE-6 SHS-1 Strengthening safety SHS-4 P24-25 management SHS-6 SHS-7 Safe Operation and Green & Low-carbon A1.1 Development A1.3 Intensifying ENV-2 A1.4 environmental ENV-5 P26-29 A1.5 protection ENV-6 A1.6 A3.1 A2.2 Developing a circular ENV-1 A2.4 P30-32 economy ENV-7 A2.5 ENV-3 Protecting biodiversity P33 ENV-4 51 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2022

B6.1 Product liability B6.2 SHS-5 P35-36 performance B6.4 B6.5 B5.1 Supply chain B5.2 SOC-2 P37-38 management B5.3 SOC-14 B5.4 SHS-2 Fulfilling Responsibilities B1.1 SHS-3 and Serving Society B1.2 SOC-1 B2.1 SOC-3 Employees’ rights B2.2 SOC-4 and interests & B2.3 P39-40 SOC-5 development B3.1 SOC-6 B3.2 SOC-7 B4.1 SOC-8 B4.2 SOC-15 SOC-9 B8.1 SOC-10 Dedication to society P41-43 B8.2 SOC-12 SOC-13 SPC ESG performance P44-46 table Written Comments on Assessment of Corporate P47 Environmental, Social and Governance Report Index P51 About this report P53 Reader feedback P54 ENVIRONMENTAL, SOCIAL AND 52 GOVERNANCE REPORT 2022

ABOUT THIS REPORT This report is the 15th CSR report and the first ESG development report issued by Sinopec Shanghai Petrochemical Co., Ltd. This report addresses the sustainability philosophy and policies of the Company and its efforts regarding environmental protection, social responsibility and corporate governance in 2022, while responding to the expectations and concerns of stakeholders. Time range From January 1, 2022 to December 31, 2022. In view of continuity and comparability, it is appropriate to use data for three years since 2020. Report standard Reporting period This report has been compiled in accordance with This report is an annual report. the No. 1 Guidance for Self-Regulation of Listed Companies in the Shanghai Stock E xchange—Standardized Operation and Guidelines on Environmental Information Disclosure of Companies Listed on the S hanghai S tock E xchange by Data source Shanghai Stock Exchange, Environmental, Social and Governance Repor ting Guide by HKE X , All data in the report are from official documents and statistical reports of the company. and with reference to the Guidelines for the ESG Evaluation of Listed Companies in China’s Petroleum and Chemical Industry, TCFD-Aligned Reporting issued by TCFD, Guidelines for the Sustainability Report by the Oil and Gas Industry (2020) jointly Report scope issued by the International Petroleum Industry Consistent with the business coverage of SPC. Environmental Conservation Association and the American Petroleum Institute (API), GRI General Standard (Version 2021) and GRI 11: Oil and Gas Industry Standard (2021 Edition) issued by GSSB, ISO2600: Ten Principles of UN Global Compact, Appellation Global Compact requirements for disclosure of For the convenient presentation and reading, “Sinopec annual progress, and other Guidelines Shanghai Petrochemical Co., Ltd.” is also stated as “SPC”, “the Company” or “we” in the report. Report promotion The Company promises that there is no false record, misleading statement or material omission Report language in the Report and assumes legal liabilities for its This report is available in both English and Chinese. authentically, accuracy and completeness. In case of any discrepancy, the Chinese version shall prevail. Access to the report and further reading Review and approve Please visit the website of the Company (http://spc. sinopec.com/) to view or download the electronic This report has been approved by the Board of Directors of the Company on March 22, 2023. text of this report for more information. 53 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2022

READER FEEDBACK Dear readers, Thank you for reading the 2022 SPC ESG Report. We appreciate and look forward to hearing your feedback on the sustainable development of SPC and this report. Your comments and suggestions provide an important reference for us to improve our ESG performance. Please send us your feedback by mail, email or fax. We welcome and appreciate your valuable comments! Name: Employer: Tel: Email: Your comments on this report: Your comments on this report: Excellent Good General Poor Do you consider the structure of this report reasonable? ÈÈÈ È Do you understand the ESG philosophy and practice ÈÈÈ È characteristics of SPC from this report? Do you consider this report easily readable? ÈÈÈ È Do you consider the content arrangement and layout of ÈÈÈ È this report reasonable? What is your overall assessment of this report? ÈÈÈ È Your suggestions on SPC ESG Report: Your suggestions on the sustainable development of SPC: You can contact us by: No. 48 Jinyi Road, Jinshan District, Shanghai, China, postal code: 200540 TEL:86-21-57941941 FAX:86-21-57940050 Email:spc@spc.com.cn ENVIRONMENTAL, SOCIAL AND 54 GOVERNANCE REPORT 2022

Sinopec Shanghai Petrochemical Company Limited Address: 48 Jinyi Road, Jinshan District, Shanghai, PRC Tel: 86-21-57941941 Fax: 86-21-57940050 Website: www.spc.com.cn E-Mail: spc@spc.com.cn Postal Code: 200540