PetroChina Company Limited

InfluenceMap Score
C-
Performance Band
55%
Organisation Score
n/a
Relationship Score
Sector:
Energy
Head​quarters:
Beijing, China
Official Web Site:
Wikipedia:

Climate Lobbying Overview: PetroChina demonstrates mixed engagement on climate policy, with examples of strategically negative engagement on the energy transition. The company appears to have communicated a positive top-line position on climate policy and has called for expanding China’s national carbon market. However, it has also opposed the EU carbon adjustment mechanism and advocated for a continued role of fossil fuels in the energy mix, including coal and natural gas.

Top-line Messaging on Climate Policy: PetroChina appears broadly supportive of ambitious climate action in its top-line communications. In its 2020 ESG Report, PetroChina stated support for the Paris Agreement and the goal of limiting global warming to less than 2°C by the end of this century. In March 2021, as reported by 163 News, the CEO of PetroChina, Dai Houliang, backed China’s Nationally Determined Contributions to reach carbon peak by 2030 and carbon neutrality by 2060. In September 2021, the company stated support for government regulation to incentivize emissions reduction in a joint letter issued via the Oil and Gas Climate Initiative.

Engagement with Climate-Related Regulations: PetroChina appears to have limited engagement with climate policy. However, its parent company CNPC appears to be more engaged, with mixed support for climate policies. In a November 2021 article published by the Research Institute of Economics and Technology (ETRI), the think tank of PetroChina’s parent company CNPC, the group advocated to exclude China from the European Union’s Carbon Border Adjustment Mechanism (EU CBAM), suggesting that the mechanism should observe the principle of “Common but Differentiated Responsibilities and Respective Capabilities” set out in the United Nations Framework Convention on Climate Change. In another article, also published in November 2021 by ETRI, the company called for expanding China’s carbon market to include more sectors which will eventually be affected by EU CBAM, including iron and steel, cement, aluminum, and fertilizer. Despite its supportive position towards emissions trading in China, in an article authored by ETRI in August 2021, the company did not appear to support a more ambitious carbon price. In terms of emissions reduction, in a blog post in May 2021, CNPC stated support for government policy on methane emission control and reduction.

Positioning on Energy Transition: PetroChina appears to have limited engagement on energy transition. However, its parent company CNPC has communicated actively in support of fossil fuels. In December 2020, as reported by Xinhua News, CNPC suggested increasing the share of renewables in the energy mix but, at the same time, also continuing the exploration of oil and gas. In a March 2021 blog post, CNPC advocated for accelerating the further exploration of shale oil in China to secure energy supply. On CNPC’s corporate website, last accessed in November 2021, the company described natural gas as a low-carbon energy source, without clear reference to the deployment of CCS or methane abatement measures. An article published in March 2021 by ETRI advocated for subsidies for deep-water gas exploration. Another March 2021 article authored by ETRI stated that, considering China’s natural endowment of resources, a complete phase out of coal is unrealistic, and suggested continuing using coal with CCUS. In a July 2020 article, ETRI emphasized that improving the efficiency of coal is the path suitable to China’s energy structure, called to advance the technology of underground coal gasification, and suggested that producing hydrogen with coal gas is potentially a new path for the hydrogen industry.

However, PetroChina also has some positive communication on energy transition. In March 2021 in a press release by CNPC, the company stated support for using green hydrogen in heavy industry and called for policy support. In a blog post in December 2020, the company communicated positively on a regulation that promotes new energy vehicles and electrification of transport in China.

Industry Association Governance: As of November 2021, PetroChina does not appear to disclose a list of its industry association memberships on its corporate website. PetroChina is a strategic partner of International Air Transport Association (IATA), and the president of PetroChina Canada sits on the board of Canadian Association of Petroleum Producers (CAPP). IATA and CAPP have negatively lobbied on climate policies.

Additional Note: PetroChina is headquartered in China, where InfluenceMap’s LobbyMap platform can currently only make a provisional assessment of corporate climate policy engagement, due to limited capability to access publicly available data on this issue. As it is possible that InfluenceMap is not yet able to fully capture evidence of PetroChina's climate policy engagement activities, these scores should be considered provisional at this time.

In addition, CNPC is the parent company of PetroChina, and owns over 80% of its shareholding. The board of directors of PetroChina is identical with the Top Management team of CNPC. However, PetroChina has issued a disclaimer on its website stating that “CNPC is independent from the Company in all aspects, including personnel deployment, assets, finance, organisation and business operations.” Noting this, in each evidence piece it is indicated clearly whether the action is from CNPC or PetroChina.

CNPC is a listed company with more than 50% of its shares owned by the government of China. State-owned enterprises likely retain channels of direct and private engagement with government officials that InfluenceMap is unable to assess, and therefore are not represented in PetroChina's engagement intensity metric.

QUERIES
DATA SOURCES
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Strength of Relationship
STRONG
 
 
 
 
 
 
 
WEAK

How to Read our Relationship Score Map

In this section, we depict graphically the relationships the corporation has with trade associations, federations, advocacy groups and other third parties who may be acting on their behalf to influence climate change policy. Each of the columns above represents one relationship the corporation appears to have with such a third party. In these columns, the top, dark section represents the strength of the relationship the corporation has with the influencer. For example if a corporation's senior executive also held a key role in the trade association, we would deem this to be a strong relationship and it would be on the far left of the chart above, with the weaker ones to the right. Click on these grey shaded upper sections for details of these relationships. The middle section contains a link to the organization score details of the influencer concerned, so you can see the details of its climate change policy influence. Click on the middle sections for for details of the trade associations. The lower section contains the organization score of that influencer, the lower the more negatively it is influencing climate policy.