Collaborating
across the industry
to create a
responsible
industry chain
Sinopec is committed to the principles of responsible and transparent procurement, upholding open and transparent procurement standards and continuously improving its supplier and contractor management systems. The Company also continues to deepen strategic partnerships and actively explores diversified cooperation models to create a sustainable and accountable supply chain.
Bidding and tendering management
Sinopec has revised its three major systems—material procurement bidding and tendering management, bidding specifications, and bidding and tendering supervision and management methods—expanding its "1+6+12" bidding management system into a comprehensive framework that now includes 1 overarching management system, 8 specialized management rules, 12 operational guidelines, and 1 supervision and management method. Additionally, the Company has standardized bidding and procurement criteria, established clear compliance boundaries for bidding conditions, and developed a new electronic bidding platform that integrates both bidding and procurement. The Company has also introduced centralized prequalification for bidders and promoted the standardization and digital supervision of bidding processes to enable risk pre-warning, in-process control, and post-event monitoring for key bidding and procurement activities.
Supplier management
Sinopec has continuously strengthened its supply resource management system, actively expanded access to supply services, and optimized its supplier qualification review and dynamic performance evaluation mechanisms. The Company has also enforced stricter penalties for contract breaches and promoted the development of a market integrity system, aiming to build a transparent material supply ecosystem.
Contractor management
Sinopec has developed and issued the Sinopec Management Regulations on Engineering Construction and Inspection and Maintenance Contractors and the Sinopec Management Measures for Personnel Training and Assessment of Engineering Construction Contractor Projects, along with other relevant systems and guidelines, to comprehensively regulate contractor management. The Company has also issued the Notice on Strictly Implementing Bidding and Tendering Regulations to Further Regulate the Conduct of Bidding and Tendering Entities to strengthen the supervision and management of engineering bidding and tendering activities. Additionally, Sinopec has adopted a "red line crossing penalty + scoring and quantitative assessment" approach to evaluating contractors. Contractors found violating the Integrity Responsibility Statement or Integrity Responsibility Agreement, or involved in power abuse or bribery, will be added to the Company's blacklist of engineering contractors. The Company also conducts scoring and quantitative assessments for both contractors and their personnel to encourage comprehensive reviews and improvements in construction practices. Due to stringent enforcement of market integrity management measures, 5 contractors and 264 contractor personnel have been blacklisted.
Sinopec's bidding standards clearly require all contractors to hold certifications in quality management, environmental management, and occupational health and safety management systems. Bidders will be disqualified if they have been involved in major engineering safety incidents in the past three years, have caused significant social impacts due to environmental violations, or are on a government blacklist. Additionally, any bidder scoring below 80 for the HSE review during the qualification review will be rejected. The contract terms explicitly outline that contractors must assume responsibility for safety and environmental protection and implement the necessary measures accordingly.
Industrial chain management
Sustained operations of EPEC
Sinopec's EPEC e-commerce platform for industrial products adheres to the principle of "professionalizing procurement" and has created a new supply chain to business (SC2B) e-commerce model characterized by information sharing and digital connectivity. The platform consistently provides services in four key areas—procurement, sales, bidding, and comprehensive value-added services—aiming to build a transparent, trustworthy, green, safe, open, and collaborative digital supply chain ecosystem. Sinopec has also built the first industrial e-commerce innovation base that meets national technical standards, providing a one-stop digital supply chain solution integrating "procurement mall (SaaS) + supply resources + management tools", and developed 19 tools under its Easy series. The platform's business operations span 104 countries and regions, covering various professional fields, including raw materials, components, equipment, and chemicals, and it has formed partnerships with suppliers and buyers in 61 countries along the Belt and Road.
Strengthening strategic partnerships
Sinopec has advanced its open cooperation strategy based on the principles of mutual benefit and shared development. The Company has actively engaged in in-depth collaborations and exchanges with governments, enterprises, and universities to continuously broaden the scope of cooperation, achieve synergies, and optimize resource sharing. At the 6th China International Import Expo in November 2023, Sinopec signed procurement agreements with 38 partners from 16 countries and regions, with a total contract value of USD 40.3 billion.
Supporting China's goal to become a manufacturing power
Sinopec has intensified its efforts to localize major equipment by launching several initiatives, including the localization of the FDPE extrusion & pelleting unit, POE screw mixer and pelletizer, PP labyrinth reciprocating compressor, and propane dehydrogenation coil-wound heat exchanger. The Company has also actively promoted the use of domestically produced equipment by focusing on R&D at the source and implementing demonstration plans for the localization of major equipment across 12 projects.
