Anton actively responds to the challenges posed by climate change. Referring to the recommendations of the Task Force on Climate-related Financial Disclosure (TCFD), we focus on four key areas of climate change management: governance, strategy, risk management, and metrics and targets. Through this framework, we implement a comprehensive array of climate response measures to effectively address climate change in a pragmatic manner.

Governance

 

The Company attaches great importance to the risks and opportunities related to climate change. We have established a threetier climate change management system to facilitate effective internal communication and the implementation of climate-related initiatives:

 

 

Strategy

 

We closely monitor developments in policies, laws, technologies, and markets associated with the transition to a low-carbon economy in China and globally. Through years of specialized research, we have integrated climate change considerations into the Company's strategic planning and management practices. We consistently conduct thorough and comprehensive identification and assessment of climate change risks and opportunities, enabling us to capitalize on green transformation opportunities and facilitate the long-term, sustainable development of the Company.

 

Risk Management

 

We have established a comprehensive process for identifying, assessing, and managing climate risks. Through this robust process, we evaluate the likelihood and impact of various climate risks, analyze climate policy trends and market dynamics, identify key climate risks, and facilitate the implementation of relevant risk management measures.

 

Anton’s process of identifying, assessing and managing climate-related risks

 

 

In FY2023, we further intensified our efforts to identify physical and transition risks related to the Company's operations and developed countermeasures in the context of the Company's strategy and development:

 

 

Climate Change-related Opportunities

 

 

Metrics and Targets

 

To better respond to the country's goal of peaking carbon emissions and achieving carbon neutrality, and to play an active role in global climate action, we have set short-term and long-term objectives for carbon emissions and explored a green development model:

 

 

We use scope 1, scope 2, and scope 3 GHG emissions, along with emissions per revenue, as key indicators of climate change. Carbon emission performance is directly tied to the remuneration of managers in each unit. We conduct regular assessments of climate change performance and progress to ensure that our carbon neutrality target is met. In FY2023, we successfully achieved a 2.7% decrease in GHG emissions per revenue compared to FY2022, thus basically meeting our annual carbon emission reduction target.

 

 

Climate Actions

 

As a leading oilfield technology services company, we specialize in leveraging advanced technologies to assist our clients in mitigating greenhouse gas emissions during resource development. Concurrently, we are dedicated to reducing our own greenhouse gas emissions through technological innovation and stringent operational management practices. We are also committed to ramping up our technological and service innovation efforts, so as to help our customers and partners cut their greenhouse gas emissions. By pursuing these initiatives, we aim to achieve our sustainability objectives while also contributing to the industry's green transformation.

 

Exploration of Emission Reduction in Anton

 

To effectively manage carbon emissions in our operations and achieve our emission reduction objectives, we have developed the Greenhouse Gas Emissions Management Measures. The Measures incorporates indicators for controlling greenhouse gas emissions into our production and operation metrics, enabling comprehensive management of emissions throughout the entire process. To improve operational efficiency and reduce carbon emissions, we encourage the use of clean energy, make continuous efforts to implement the "Energy Efficiency Improvement" plan, and apply digital technologies.

 

 

Empowerment of Industry Partners

 

We provide our clients with better tailor-made and more efficient engineering design and development services for oilfield assets by applying precise engineering techniques, visualized data monitoring technologies, and optimal solutions to productivity and efficiency enhancement research. These measures help reduce the consumption of raw materials and energy resources, significantly raising the efficiency of resource utilization and development, as well as helping clients reduce the environmental impact of their operations. We proactively promote the business layout of Carbon Capture, Utilization and Storage (CCUS), which not only helps our clients to meet the challenging task of carbon emission reduction, but also turns carbon dioxide into a valuable resource that can be used for oil well flooding, thus improving the recovery efficiency of crude oil. In addition, we have innovatively developed a permanent fiber optic monitoring technology for U-shaped geothermal wells to support our clients in the exploitation of renewable geothermal energy, further contributing to carbon emission reduction efforts.

Based on the characteristics of the oil and gas industry, we have introduced the “asset leasing solution for green oil and gas development”, in order to support the green transition of our partners in the industry.

 

 

Case：Ningxia Yanchi CCUS Project

 

In FY2023, we worked with our partners to carry out the air seal inspection project in Yanchi, Ningxia, with a total of 25 wells of tubular air seal inspection completed. Oil casing gas seal inspection can help prevent gas leakage from oil and gas wells, avoiding major accidents such as fires or well scrapping from the smallest details. This effort can also help minimize the impact of methane escape on the environment.

 

 

Promotion of R&D Cooperation

 

We are committed to exploring collaboration opportunities to advance the industry's green transformation. Collaborating with various research institutes, we have focused on developing carbon capture, utilization, and storage (CCUS) technology. Additionally, we actively engage in industry conferences to explore connections between natural gas emissions reduction and carbon trading businesses. In FY2023, we became a governing unit of the International Cooperation Alliance for CCUS Technology Innovation led by Southwest Petroleum University. Moving forward, we will deepen exchanges and strengthen cooperation with fellow members. Together, we aim to promote scientific and technological innovation in CCUS, facilitate the application and transformation of research outcomes, and contribute to the achievement of carbon emission peak and carbon neutrality goals.