Climate Change Strategy
The Green Roadmap is one of the strategies under the vision to become the Thai Premier Multinational Energy Company through management excellence in advanced technologies and environmental responsibility. The Green Roadmap reflects PTT’s commitment to developing Green Products through the research and development of alternative energy and environmentally friendly products; the implementation of the Green Process across all levels of management 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.
The PTT Group Sustainability Alignment Committee (SAC) is responsible for policy and climate change management 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 in energy consumption, reduce GHG emissions and effectively manage GHG emissions within the organization; 2. Green Product: 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.
Climate Change Management
Risks and Opportunities from Climate Change
PTT adopts Enterprise Risk Management to analyze risks and opportunities arising from climate change in various cases 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 levels and natural disasters. In addition, PTT also 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 through the Annual Sustainability Report. In 2011, PTT conducted an assessment of the risks and opportunities arising from climate change and continues to monitor relevant factors.
Climate change risk is an opportunity for an organization to develop itself in order to effectively respond to risks and changes arising from various conditions and shifting consumer behaviors due to greater awareness of climate change. These factors align with the vision, strategic direction of TAGNOC, and the Green Roadmap. To date, several innovations have been presented to consumers, including alternative energy such as gasohol oil E20 and E85, and synthetic materials made from biomaterials and which are used to develop hi-tech gadgets that are lightweight, durable and environmentally-friendly, such as composite LPG gas tanks and biodegradable plastic for use in coffee cups, popcorn buckets, etc.
For risks and opportunities arising from climate change at the operational level, PTT takes into account natural risks such as rising sea levels and natural disasters. Appropriate actions are taken to minimize the impacts of such risks by preparing to protect against and respond to impacts from these risks by using the Business Continuity Management System (BCMS). 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 following up business continuity on a quarterly basis.
Greenhouse Gas Emission
PTT’s long-term greenhouse gas (GHG) emission target is to reduce emissions from PTT Group operations by 1.1 million tons 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 Product: Low-Carbon Products, such as bio-fuels.
|Green Public Awareness: Carbon reduction Initiatives, such as reforestation.
Greenhouse Gas Emission Accounting
PTT has adopted Greenhouse Gas Accounting to track its GHG inventory since 2006. 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) and Indirect Emissions (Scope 2)
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.
Other Indirect GHG Emissions (Scope 3)
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 TAGNOC strategic direction and Alternative Energy Development Plan (AEDP). In addition, PTT plans to expand the manufacture of bio-fuels in order to serve the increasing demand for bio-fuel in Thailand.
Progress against Plan
|Compliance of GHG database 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 Hazardous Waste-to-Landfill.
||Development of the GHG database (in progress).
||Complete reporting system and launch system for data reporting. |
|Participation in CDP: Climate Change
Fulfil CDP commitments by 2015 and continue to report GHG data and performance through participation in the CDP.
|In 2015, received score of 87 out of 100 from the CDP assessment.
||Improve performance and disseminate information on GHG management through CDP participation. |
|Green Roadmap: Process – Energy Efficiency
||• 2015 Target: Reduce
GHG intensity to 88.6 kg
• Long-term target:
Reduce GHG intensity by
5% by 2020, compared
to 2012 baseline.
|Managed GHG emissions intensity at 84.74 kg CO2/boe in 2015, better than the set annual target
||• 2016 Target: Control |
intensity within the
limit of 88.5 kg
• Long-term target:
Reduce GHG intensity
by 5% by 2020,
compared to 2012