The Green Roadmap is one of the strategies of becoming the Thai Premier Multinational Energy Company by focusing on management excellence for advanced technologies and being environmental responsible. The Green Roadmap reflects PTT’s commitment to develop Green Products through research and development of alternative energy and environmentally friendly products; the implementation of the Green Process across all management levels with the aim of increasing energy efficiency, reducing greenhouse gas emissions, and improving environmentally friendly processes; and the establishment of Green Public Awareness through the cultivation of environmental awareness within PTT Group, its suppliers, customers, and the public. In addition, PTT has invested in the research and development of carbon capture and storage technology as well as in carbon offset projects through various mechanisms while collaborating with public and private sectors to promote activities and policies related to climate change.
On April 22nd 2016, Thailand signed the Paris Agreement and pledged to a GHG emission reduction target of 20-25% within 2030. PTT has responded to the national target by focusing on GHG management and establishing the Green Roadmap under the governance of the Sustainability Alignment Committee’s (SAC). The SAC is responsible for policy work, GHG management at policy level under the direction of the Green Roadmap, annual performance monitoring, and strategy revisions as required.
Details of the Green Roadmap are as follows: 1. Green Process: Improve efficiency of energy consumption, reduce GHG emissions and effectively manage GHG emissions within the organization; 2. Green Products: Produce, procure, and distribute products that reduce GHG emissions, such as gasohol, bio-diesel fuels, composite LPG gas tanks, and biodegradable plastic in products such as Amazon Coffee cups; 3. Green Public Awareness: Cultivate a sustainable society through various GHG reduction initiatives, such as reforestation and social development activities. The aforementioned plans correspond to the Climate Change Roadmap established in 2003.
All action plans, strategies and projects targeted at improving energy efficiency and reducing GHG through energy management have to be formulated as business plans for approval by the Corporate Performance Committee on a quarterly basis. At the same time, the PTT Group QSHE Policy Committee oversees overall management to ensure that the performance of all PTT Group companies is aligned in the same direction.
PTT adopts the Enterprise Risk Management to analyze risks and opportunities arising from climate change by considering regulatory risk factors, consumer behavioral change, market trends, financial risks such as carbon tax, and physical risks such as the rise of sea level and extreme weather events. In addition, PTT considers and monitors reputational risk and updates mitigation measures on a monthly basis. As a result, financial impacts from reputational risk as a result of climate change are relatively low. PTT reports its assessment of risks and opportunities from climate change to the Board and stakeholders annually. In 2016, PTT identified risks and opportunities from Thailand’s GHG targets as per communicated Intended Nationally Determined Contributions (INDCs) for Thailand, hence, PTT is developing 2030 target in accordance with the INDC.
Climate change risk is an opportunity for an organization to develop itself in order to effectively respond to risks from climate change and shifting consumer behaviors due to greater awareness of climate change. These factors firmly align with the vision, strategic direction of Pride and Treasure of Thailand, and the Green Roadmap. To date, several innovations have been presented to consumers. Innovations include alternative energy sources such as gasohol oil E20 and E85, and synthetic materials made from biomaterials which are used to develop hi-tech equipment that is lightweight, durable and environmentally-friendly, such as composite LPG gas tanks and biodegradable plastic for use in coffee cups, popcorn buckets. Furthermore, innovation focuses on electricity generation from waste to energy power plant, and developing solar photovoltaic system.
For risks and opportunities arising from climate change at the operational level, PTT takes into account natural risks such as rising sea level and extreme weather events. Appropriate actions are taken to minimize the impacts of such risks by using the Business Continuity Management System (BCMS) by g to protect against and respond to impacts from climate change risks. This system covers an emergency response plan for incidents which may occur from both human and natural causes. Each business unit is responsible for monitoring and ensuring business continuity on a quarterly basis.
PTT’s long-term greenhouse gas (GHG) emission target is to reduce emissions from PTT Group operations by 1.1 million tonnes carbon dioxide equivalents, resulting in the reduction of greenhouse gas intensity by 5% by 2020, compared to 2012.
|Green Process: Reduce GHG Emission, such as through energy efficiency.
|Green Products: Low-Carbon Products, such as bio-fuels.
|Green Public Awareness: Carbon reduction Initiatives, such as reforestation.
In 2006, PTT has adopted Greenhouse Gas Accounting to track its GHG inventory. This mechanism tracks and reports on direct GHG emissions (Scope 1), indirect GHG emissions (Scope 2), and other indirect GHG emissions (Scope 3). GHG data is externally verified by a third party organization. In addition, PTT defines the carbon intensity index as the organization’s performance indicator for GHG emission reduction, as well as sets long-term targets to steadily improve carbon intensity to reflect GHG emission reduction while increasing production. PTT had developed the PTT Group GHG Project Standard based on ISO-14064-2. The Standard is integrated with PTT’s GHG emission inventory and is used as the standard for PTT Group to assess and analyze GHG reduction efforts in accordance with international standards.
Direct GHG emissions (Scope 1) cover operational activities in combustion, carbon dioxide separation, release of hydrofluorocarbons (HFCs) and sulfur hexafluoride (SF6), fugitive emissions, vented emissions, flares, and process emissions.
Indirect GHG emissions (Scope 2) are the release of GHG from the consumption of purchased energy such as electricity, heat and steam in PTT’s business operations.
PTT’s approach for reducing GHG emissions from business operations, covering direct GHG emissions and indirect GHG emissions focuses on process management with regard to energy efficiency and GHG reduction (Green Process), improving energy efficiency, changing fuel types, generating power from co-generation power plants, and utilizing waste heat.
PTT’s other sources of indirect GHG emissions (Scope 3) include the transportation of raw materials and products, employees traveling by air, as well as combustion from products sold. In 2015, PTT planned to expand GHG accounting to cover Scope 3 emissions, namely emissions from waste, to align with the PTT Group 2020 Strategic Objective of Zero Hazardous Waste-to-Landfill.
PTT’s approach for reducing other indirect GHG emissions focuses on reducing product carbon footprints through product research and development to meet market needs in correspondence with the Pride and Treasure of Thailand strategic direction and Alternative Energy Development Plan (AEDP). In addition, PTT plans to expand manufacturing of bio-fuels in order to serve the increasing demand for bio-fuel in Thailand.
WorkPlan1: Compliance of GHG database and inventories with international standards, and manage GHG through target-setting at the business unit level and PTT Group companies.
|Expand GHG accounting to cover Scope 3 Emissions from waste, to meet PTT’s 2020 Strategic Objective of Zero Industrial Waste-to-Landfill.
||The calculation tool has been developed and It will be deployed by 2017.
||Consolidate Scope 3 Emission data that relevant with other significant activities.|
Work Plan 2:Participation in CDP: Climate Change
|Fulfil CDP commitments by continuing to report GHG data and performance through participation in the CDP program.
||Disclosed information via CDP submission 2016
||Annually disclose data through participation in the CDP program|
Work Plan 3:Green Roadmap: Process – Energy Efficiency
|To control GHG emissions intensity within the limit of 88.5 kg CO2/boe
||Managed GHG emissions intensity at 78.7 kg CO2/boe.
||Control GHG emissions intensity within the limit of 88.9 kg CO2/boe.|
|Long-term target: Reduce GHG intensity by 5% by 2020, compared to 2012 baseline.
||GHG intensity reduced by 14% compared to 2012 baseline.
Additional reduction of 3.2% compared to 2012 baseline.
PTT Group Environmental Master Plan