Sustainable Governance and the PTT Group Sustainability Management Framework
Sustainability Alignment Committee: (SAC)
The overall responsibility of PTT Group’s sustainability performance lies with the Group Sustainability Committee, which was renamed the Sustainability Alignment Committee (SAC) in 2014 to better and more closely integrate sustainability management within PTT Group. The Senior Executive Vice President of the Sustainability Management and Project Engineering serves as Chair of the Committee, with committee members from various Business Units and from Flagship companies – PTTEP, PTTGC, TOP, IRPC, and GPSC – meet regularly at least once every quarter to jointly establish sustainability-related plans and strategies, and to monitor progress.
PTT Group Sustainability Management Framework
The PTT Group Sustainability Management Framework has been developed to support the PTT Group Sustainability Management Policy. The Framework is in line with related international standards and guidelines such as World Business Council for Sustainable Development (WBCSD) Vision 2050, United Nations Global Compact (UNGC), ISO 26000, Global Reporting Initiative (GRI), and Dow Jones Sustainability Indices (DJSI).
The PTT Group Sustainability Management Framework consists of 10 Elements as follows:
Organizational Governance refers to the systematic integration of sustainability principles, practices, values and culture into business processes. This involves planning, control, and decision-making to ensure that objectives are achieved upon the foundation of clear and concrete structures and processes. In this way, Sustainability Management Governance covers Management and Board of Directors’ Leadership in driving change, building a corporate-wide sustainability management culture, transparency in operations, and collaboration between the company, public and private sectors, and civil society and communities
Human Rights refer to the basic rights and freedoms granted to all individuals. The organization should respect and demonstrate awareness of the importance of human rights of all stakeholder groups, and understand salient human rights issues (issues at risk of the most severe negative impacts) that are present in the company’s activities and business relationships, across its value chain. The scope of this element covers: risk assessment, human rights management and due diligence, complicity in human rights violations, resettlements, and labor rights, among others.
Employees are integral in driving the organization towards success, in accordance with its targets, vision, and strategic objectives. Efficient human resources management therefore encompasses long-term talent retention within the organization, talent attraction and engagement-building, and capacity development for all employees.
Security, Safety, Health And Environment
Efficient performance in security, safety, health and environment (SSHE) is an important foundation for operations, as it reduces risks of accidents and environmental impacts in all areas of operations – leading to the safety and security of stakeholders, reduction in negative impacts to business, such as reputation and organizational trust. The scope of the element covers compliance to requirements, laws, and international standards, efficient resources management, resource use reduction, climate change preparedness, integrated water resources management, and biodiversity conservation, etc.
Fair Operating Practices
Fair and transparent governance is the critical foundation for businesses in building trust among stakeholders regarding its operations, and is linked to organizational reputation. This element therefore encompasses respect for the rule of law in all areas of operations, combatting corruption in all forms, strong internal controls, privacy and conflicts of interest, and whistleblowing and protection of whistleblowers.
Good corporate citizenship refers to the act of conducting business whilst engaging with communities to elevate their qualities of life and contribute to human development, under to the framework of respect for the rights and freedoms of all, to bring about stakeholder trust and mutual growth. The scope of this element covers community investment, stakeholder collaboration, such as with the public and private sectors, and sustainability leadership.
Supply Chain Management
Supply Chain Management refers to the management of economic, social, and environmental impacts in the production process, service delivery, and procurement through means as risk management, good corporate governance, supplier collaboration, and continuous capacity development for employees and suppliers. Consideration of the aforementioned factors will reduce the risks of business interruption resulting from unexpected events, create long-term benefits for the organization and suppliers, and further promote stakeholder trust in the organization’s good practices.
Product stewardship refers to the research and development of products and services that integrates considerations of health, social, and environmental impacts throughout a product’s life cycle, while at the same time remaining conscious of customers’ expectations and the commitment to creating benefits for society, the environment, and organization. Product stewardship therefore encompasses compliance to laws and relevant standards, life cycle assessment, promoting research and development (R&D) of social and environmental innovations, product labeling, as well as customer relations management.
Reporting And Reputation
Reporting on sustainability performance demonstrates the organization’s commitment to disclosing its economic, social, environmental, and governance performance to internal and external stakeholders. Aside from creating trust in the organization, reporting is a critical process in reviewing performance and identifying opportunities for continuous improvement. The element covers: reporting approaches (national and international) and report quality assurance.
Stakeholder refers to an individual or a group of individuals both inside and outside the organization that may receive direct and indirect impacts from business operations across PTT Group’s supply chain. Efficient stakeholder engagement should support the organization in thoroughly responding to stakeholders needs, as well as reduce reputational risks and chances of business interruption. The element encompasses stakeholder risk management, collaboration, transparency, and grievance processes.
Sustainability Management Framework click here
Scope of Application
|PTT-Operated Business and 100% Share Ownership
||The Framework is to be applied formally and systematically in accordance with the prescribed requirements.|
- Less than 100% share ownership and managed under PTT (Flagship)
- Less than 100% share ownership but more than or equal to other investors (Majority)
||The Framework is to be adopted in alignment with existing management approaches.|
|Less than 100% share ownership and less than other investors (Minority)
||The Framework is to be acknowledged, and performance to be reported to PTT. |
PTT implemented the Sustainability Management Compliance Assurance against the requirements in the PTT Group Sustainability Management Framework, the compliance assurance process is used a tool for managing and monitoring sustainability issues. The assurance process also ensures the consideration and implementation of the regulations and requirements which the organization adheres to at the international level, and can be used for the preparation of action plans. As a result, the process creates opportunities and challenges for organizational development and can be used as information for improvement. Regular monitoring, control, and verification allows the organization to achieve its sustainability strategy.
Validation and Audit
To monitor the progress of PTT Group’s implementation of the PTT Group Sustainability Management Framework, PTT has 2 levels of verification in accordance with the PTT Group Sustainability Management Framework which include:
Level 1: Self-Assessment is conducted on an annual basis. The PTT Group Sustainability Management Project distributes an assessment form to all relevant functions and operations and all PTT Group’s Affiliates to perform self-assessment. Results from the self-assessments are consolidated and report to the GSC.
Level 2: External Assessment by a third party is conducted every 3 years. The third party auditor visits PTT and PTT’s subsidiaries to verify the effectiveness of performance in accordance with the 10 elements of the PTT Group Sustainability Management Framework.