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Management Approach

 

Quality, Security, Safety, Health, and Environment Policy: QSHE Policy

The PTT Group Quality Security Safety Health and Environment Policy (PTT Group QSHE Policy) serves as an implementation framework for executives and employees within the organization as well as PTT Group companies. PTT implements the policy by setting targets, strategic plans/programs, work plans, and key performance indicators (KPIs) which are deployed from corporate level to Business Unit, Business Areas, divisions, and operational sites, respectively. The most senior executive of each company under PTT Group, together with the President and CEO of PTT, have signed an agreement to implement the QSHE management framework; to define the work plan and key performance indicators; and to monitor and assess performance against targets, strategic plans/programs, and work plans in order to assess compliance with PTT Group's policy on a quarterly basis. Moreover, an audit is conducted at the corporate level as specified in the agenda.

Reference: PTT Group Quality Security Safety Health and Environment Policy


Long-term and Annual SSHE Strategic Objectives

PTT sets SSHE strategic objectives that respond to and comply with the corporate strategy including long-term objectives that cover 3 aspects:

  • Socio: Focus on reducing loss related to safety and health of employees, contractors and process safety
  • Eco: Reduce ecological footprint throughout the product life-cycle
  • Efficient: Improve the operational effectiveness to be ranked as a leader on an international level
  •  


    The strategy implementation focuses on creating a QSHE culture and SSHE management system as tools for improving operational effectiveness and efficiency, while developing innovation and initiatives to ensure that the performance is in line with the defined targets as well as to reduce social and environmental impacts.

    To transform commitment into action, PTT sets annual QSHE Goals by considering the internal and external factors that have impacts on operations and selecting key performance indicators as corporate targets. Each business unit must then set targets for the business areas and divisions as appropriate. The executives will be informed regularly of the results of monitoring and assessments against the targets.

    PTT Group SSHE Management Standard (SSHE MS) is an important tool used to manage risk related to SSHE. All business units and PTT Group companies must implement the Standard as a management framework appropriate to the profile and risk of the business. Doing so creates a linkage between PTT Group QSHE Policy, management policy and regulation, and the procedures for each of the business units and companies. The management standard is developed in accordance with the Plan-Do-Check-Act Principle, which leads to continuous improvement and is based on the international management standard comprised of 6 main elements. Each of the main elements can be summarized as follows:

     

    ​​
    Policy & Leadership: communicating, and illustrating the commitment of the management in creating a clear culture for SSHE management as well as reviewing the effectiveness of SSHE performance
    Planning: Risk assessment, the coverage of law, SSHE assessment for mergers and acquisitions of new assets and projects, SSHE management related to the life cycle of products
    Engineering, Operations and Maintenance: SSHE risk management during the design, construction, testing, and operation phases operated by staff, contractors or sub-contractors; appropriate maintenance for machines and tools; and emergency and crisis preparedness and response in order to reduce and mitigate SSHE related impacts that may occur such as emission of pollution, wastewater drainage, waste management, etc.
    Performance Monitoring and Improvement: SSHE risk management during the design, construction, testing, and operation phases operated by staff, contractors or sub-contractors; appropriate maintenance for machines and tools; and emergency and crisis preparedness and response in order to reduce and mitigate SSHE related impacts that may occur such as emission of pollution, wastewater drainage, waste management, etc.
    Resources and Organization: Defining roles, responsibilities, and competency of staff as appropriate to manage SSHE issues effectively
    Culture, Communications and Information: Creating SSHE engagement, behavior and culture. Communicating internally and externally to interested stakeholders. Controlling the SSHE documentation and recordkeeping. All of these requirements have been developed based on the international standards, existing management system, best practice used by multinational companies in the power industry, and Thailand Quality Award (TQA), which are adjusted to match the nature of PTT Group's operations.

    Reference: PTT Group SSHE Management Standards

     

    Integrated Management

    The SSHE Management Standard is the basic requirement for all PTT Group businesses. It is built on existing SSHE management based on the OHSAS 18001 and ISO 14001 SSHE management systems that every business unit and operational area has already adopted.

    Each business unit controls the implementation of the SSHE management system in the involved operations and departments so as to be in compliance with the SSHE Management System Manual as well as the defined procedures and methods. The effectiveness of the performance is monitored via internal audit procedures and verified by the executives at the operation level, business area and business unit as specified in the agenda.

    Audit

    PTT sets the framework and approach for governing, controlling, and managing the SSHE related performance of departments within PTT and PTT Group resulting in an effective performance that is aligned with PTT Group QSHE Policy and direction. Approaches for SHE Corporate Audit include:

    1. PTT Group SSHE Management Standard
    2. SHE Performance Audit
    3. SSHE Legal Compliance Audit
    4. SSHE Performance Assessment
    5. PTT Group Engineering Standard Audit
    6. Security Compliance Audit
    7. SHE Performance Verification

    Implementation of the Policy in Business Units and PTT Group Companies

    PTT formulates policy for managing the implementation of the policy for business units and PTT Group companies based on the equity share basis. Companies in which PTT invests 100% or is the major shareholder must fully implement SSHE policy, target, strategy, and management standards.

    PTT established the PTT Group QSHE Policy Committee and the PTT QSHE Committee, in which the highest executive in the operational division and related division and executives from the QSHE department serve to examine, govern, and review the effectiveness of the implementation of SSHE policy, strategy, targets, and SSHE key performance indicators in the business units and companies within PTT Group. The committee meets quarterly and the corporate SSHE department serves as the secretariat. In addition, a special function has been set up which has the responsibilities for ensuring that SSHE management is aligned with the framework at every level of the corporate structure including the corporate, business units, operation level, and project level.

    Performance Documentation and Reporting

    PTT and PTT Group companies have worked together to improve the environmental and safety data collection and reporting system of PTT Group. By using the information system to improve the data collection system to serve as the environmental and safety database, this method facilitates systematic documentation to a common standard. As a result, PTT is able to compare the environmental and safety performance of similar business groups within PTT Group. The PTT Group environmental and safety performance documentation and reporting is a web-based application to create a wider range of access for every business group. Protected by a security system, the web application is user-friendly and available to users from various operations of PTT Group both within and outside of the country.

    Progress against plan
    1. Revision and communication of Quality, Security, Safety, Health, and Environment (QSHE) policies to affiliates
    ​2016 Target 2016 Accomplishments​​ ​2017 Target​
    ​Revise QSHE policies for improvement in accordance with current situation and factors causing change both internal and external organization​ Revised policies content by comparing with risk and change factors of both internal and external organization. The results suggested there is no need to amend any section of policies. ​​​Continuously revise QSHE policies to keep up current situation and amend as necessary.
    Communicate the policies to PTT affiliates​ Communicated the policies to PTT affiliates through PTT Way of Conduct (PTT WoC) Conducted verification; proposed recommendation including improving policies content at company level to be in accordance with the policies of the whole organization and to meet the local context of each business. Communicate the policies to PTT affiliates and continuously promote consistent practice following the policies.
    2. Revision/Establishment of strategic direction, strategic goal, and annual target in SSHE
    ​2016 Target 2016 Accomplishments​​ ​2017 Target​
    ​Revise strategic direction, strategic goal, and annual target to keep up situation in accordance with organization strategies and reflecting sustainable development. Revised and established strategies and goals for the framework and implemented roadmap as follows:
    • Strategic direction of SSHE performance of PTT group in 2016-2019.
    • Strategic objectives in 2019, goals of 2016 and affiliate-level goal
    • Management direction of significant SSHE issues in 2016-2019
    • Communicate, disseminate and move forward implementation of strategies and goals.
    • Stringently monitoring implementation progress of strategies and goals
    • Analyze and improve significant management procedure issues in order to be able to monitor, prevent, and reduce risk reduce risk to achieve desired targetdesired target
    ​3. Implementation of PTT Group SSHE Management System throughout organization following identified standard by PTT
    ​2016 Target 2016 Accomplishments​​ ​2017 Target​
    Apply SSHE Management System following international standard for most current relevant risk All 55 PTT’s and its affiliate’s sites successfully maintained internationally-standard certifying of SSHE Management System. Moreover, business continuity management system has been developed and improved. The organization has been certified by international standard ISO 22301. Apply continuously SSHE Management System following international standard
    ​Expand scope of SSHE management standards and Operational Excellent Management System (OEMS) Performed pre-evaluation of implementing SSHE management standards and OEMS to identify opportunities in improvement of four PTT Group’s companies e.g. TLBC, PTTNGD, PTTLNG and TTM
    • Monitor, impelling, and consultation for performance improvement that reflect opportunities in development of 4 PTT Group’s companies
    • Expansion scope of initial status evaluation for three additional PTT’s companies
    Apply OEMS in high-risk operation area for enhancing integration level and PTT internal management that aim to achieve safety reliability sustainability and cost-effective targets
    • Monitored and impelled implementation of OEMS by applying OEMS in seven designated companies and three business lines e.g. PTT (GSP, GTM, PTO), PTTGC, PTTEP, TOP, IRPC, GPSC, and PTT Tank
    • Strengthened knowledge exchange for identifying the best practice through OEMS Forum meeting; In 2016, 26 new operational excellence have been developed (total 55 topics) including topics related to safety process management i.e. Pre-Start up Safety Review (PSSR), Operating Window, Isolation, MoC Unauthorized Change Prevention, etc.
    ​​Monitor and impel implementation of OEMS by continuously applying OEMS in designated companies and business lines
    4. Development of SSHE issues management process
    ​2016 Target 2016 Accomplishments​​ ​2017 Target​
    Development of SSHE issues management process Developed and improved work manuals and guidelines for SSHE materiality topics as follows:
    • PTT Group Occupational Health Management System Guideline
    • PTT Health Risk Assessment Manual
    • PTT Group Climate Change and Greenhouse Gas Management Manual
    • Assessment guideline for evaluating effectiveness of environmental projects
    • Develop additional work manuals and guidelines for and guidelines SSHE materiality topics
    • Assess performance and implementation of the management system for continuous improvement
    ​5. Security, Safety, Occupational, Health, and Environment audit or PTT Group SSHE MS by corporate
    ​2016 Target 2016 Accomplishments​​ ​2017 Target​
    ​SSHE compliance audit against PTT Group standards that considers risk and main issues of the areas. To ensure excellent performance of SSHE in the value chain leading to sustainability of business and society ​In 2016, SSHE management and audits have been conducted against plans as follows:
    1. SSHE management audit against PTT Group SSHE MS and OEMS in three areas as well as including follow-up the progress of corrective action plans for previous auditing of four companies
    2. Compliance SHE legal audit and implement corrective action plans of previous auditing of five departments
    3. Monitored progress and effectiveness of preventive and corrective plans of serious accident cases for inhibiting repeating case: 3 events
    4. Conducted compliance audit against PTT Group’s engineering standards; PTT has conducted the audit for oil transportation contractors and three oil transport truck manufacturers
    5. Road Safety Management Audits have been performed for 40 PTT transporting service contractors for three products oil, natural gas, and petrochemical. Around 2,000 trucks have been assessed against the PTT Group Road Safety Management manual.
    6. The business continuity management system has been audited internally against international standard ISO 22301covering all business units and supporting units.
    7. PTT Group SSHE Performance Internal Verification used for assessing completeness and inclusivity for obtaining SSHE data has been performed in eight areas of PTT Group.
    8. Monitoring of corrective action plans for significant topics of Process topics of Process Safety Management has been conducted for four areas.
    ​Expand scope of auditing to include additional topics across PTT’s value chain i.e. product transportation contractor, and construction contractor
    ​6. Improve SSHE database to comply with data storage standard and reporting performance indicators followed international standards
    ​2016 Target 2016 Accomplishments​​ ​2017 Target​
    Expand reporting scope of SSHE to cover new areas and new established companies ​​Increased coverage of areas to include new fuel stations launched in 2016 including Vanarom Eco-industrial Zone (PTT WEcoZi) and PTTLAO ​​Increase coverage areas to include all new operating units that established in 2017
    Improve tools for consolidating and reporting data Developed linkage between database systems with environmental performance reporting i.e. analyzed wastewater database and environmental performance database to reduce data input errors. Improve management report graphic interface of environmental indicators for analyzing data and effectively managing environmental performance