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Stock exchange symbol: (601857:CH)

[Note: English translation of Chinese original sent by PetroChina]

PetroChina sent the following text as its response to the survey, rather than sending answers to the individual questions:

Since becoming a member of the UN Global Compact in 2007, PetroChina has conscientiously fulfilled the Ten Principles of the Global Compact and has actively participated in Global Compact activities. Progress in complying with the “Ten Principles” of the Global Compact is expounded and explained in the annual “Sustainable Development Report” (“Social Responsibility Report”), submitted to the United Nations Global Compact website: [link]. The actions taken by the Company to discharge its social responsibilities and the reports that it has made thereon have received very positive recognition. The Company’s Sustainable Development Report has been judged a “Global Compact Model Report” many times.

Meanwhile, PetroChina has always placed an emphasis on people-oriented principles that show respect for employees, safeguard their legitimate rights, promote hiring of local residents, and give impetus to the melding of diverse cultures. Efforts are made to solve the most practical problems that employees feel most concerned about with the aim of enabling all employees to benefit from the company’s growth and success.

1. Protection of Rights

PetroChina conscientiously complies with the Labour Law of the People’s Republic of China, the Labour Contract Law of People’s Republic of China, and applicable rules and regulations promulgated in the places where its shares are listed. It also fulfils international conventions ratified by the Chinese government, as well as the applicable laws and regulations of the places where the company carries out its operations. PetroChina has established a relatively well-developed institutional framework for managing employment matters. It includes a labour contract system, a wage, insurance and benefits system, a performance evaluation system, a rewards and penalties system, a vocational training system, and a vacations and leaves policy. The Company places a high value on employees’ vital interests and does as much as possible to protect the legitimate rights and interests of current and retired employees. It strives to develop benefit-sharing mechanisms for the Company and employees so as to establish harmonious labour relations.

The Company insists on treating all employees equally regardless of their nationality, ethnicity, race, gender, religion, belief and cultural background. The Company strictly prohibits employment and use of child labour and resists all forms of forced labour. In the workplace, male and female employees enjoy equal rights. Additionally, the Company has always striven to promote employment of local residents, women and ethnic minorities in an effort to increase job opportunities for local communities. International and local employees account for about 95 per cent of the company’s total overseas workforce.

2. Democratic Participation

The Company attaches great importance to giving full scope to democratic management, participation and supervision, and it has set up trade unions on a universal basis as well as a system for managing enterprise democracy and a system for publicly disclosing enterprise affairs, both of which basically take the form a ‘workers’ congress’ (Translator’s note: more about ‘workers’ congress’ on [link] ). Also, by clearly defining the official powers as well as the organisational and work systems of this workers’ congress,  the Company has further regularised the content, procedures and methods for making enterprise affairs public while giving prominence to the key points in such disclosures, and it has improved  the quality of corporate democratic governance.

The Company and its subsidiaries have established a variety of channels for communicating with employees and has insisted on upholding democratic procedures.  By holding events like workers congresses, democratic discussions and employee representative meetings, the Company pursues communication and exchange of ideas on multiple levels, extensively solicits employee opinions, andencourages employees to participate in the management of enterprise production and operations. It has also improved labour relations coordination mechanisms and thus promoted harmonious labour relations.

3. Remuneration and Motivation

The Company has further improved performance evaluation and salary allocation systems and has established a fully developed remuneration system that gives prominence to the value of work positions and to work evaluations in a way that conforms to the characteristics of all kinds of employees to help them more effectively realise their self-worth. In recent years, the Company has also emphasised allocations towards key scientific research personnel, basic-level frontline employees, and those who work in key positions under harsh conditions . It has thus increased salary levels for basic-level frontline employees who work outdoors and those who work in key positions under harsh conditions. The company has also widely conducted activities to select model employees, advanced workers, and enterprising and youthful talent as a way of providing psychic and material incentives to motivate employees. In addition, the Company promotes a sense of pride among employees by naming basic-level teams after outstanding team leaders. It thus commends the basic-level teams and employees for their significant contributions to the development of the Company and fosters a sense of pride among employees.