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Human Rights Governance
Commitment
PTT is mindful of human rights’ importance to corporate sustainability. PTT has therefore laid down the foundation to ensure respecting human rights as PTT’s fundamental practice, while upholding human rights principles as stipulated by the laws and international standards. This comprises the United Nations Universal Declaration of Human Rights (UNUDHR), the United Nations Guiding Principles on Business and Human Rights (UNGP), and the International Labour Organization (ILO). In conjunction, PTT has also joined in as part of the United Nations Global Compact (UNGC) and the Global Compact Network Thailand (GCNT). Additionally, PTT is also active in providing information to public sector, which supports the drafting of National Action Plan on Business and Human Rights (NAP) and the 4th National Human Rights Plan
 
Notably, PTT has announced its Sustainability Management Policy and Framework, and established Human Rights Issues as a part of the Group’s Sustainability Management Framework. PTT has encouraged other companies in the group to apply and operate in line with the management framework, which requires disclosures of risk assessment and risk mitigation plan for transparency.
PTT EP: Click here          IRPC:  Click here           PTTGC: Click here            ThaiOil: Click here
   
 
Embedding Human Rights Culture
Top Management and Senior Responsibility
Regarding the Group’s Human Rights performance, PTT’s Board of Directors has assigned Corporate Governance Committee to oversee PTT Group’s Sustainability Management and Policy, which covers human rights management throughout PTT Group’s supply chain.  This is overseen by Organization Management and Sustainability Function, comprises Senior Executive Vice President and Executive Vice President for Sustainability Management. Furthermore, Corporate Management Department is assigned to manage performance in line with the Group’s Human Rights Management System. Performance is reported to Corporate Governance Committee quarterly. This includes communicating policies to responsible functions, whose duty is to ensure effective compliance to human rights management approach.
 
Furthermore, Corporate Governance Committee closely monitors progresses and provided recommendations on operational plans, annual targets, results of human rights risks assessment, and risk management plan.  In 2018, the Committee approved the review of PTT Group Human Rights Management System, which is expected to complete in 2019. Furthermore, significant human rights performances are also reported directly to PTT’s Board. This may comprise issues such as climate change management, safety, and anti-corruption.
 
  
​Governance Structure Human Rights Performance Indicators

PTT Board of Directors
 
​Greenhouse Gas Emission Intensity
Total Recordable Injuries Rate (TRIR)
Senior Executive Vice President for Organization Management and Sustainability
​Greenhouse Gas Emission Intensity
Lost Time Accident (LTA)
Executive Vice President for Organization Management and Sustainability
​Greenhouse Gas Emission Intensity
Lost Time Accident (LTA)
Vice President for Corporate Management System Department
​Greenhouse Gas Emission Intensity
Lost Time Accident (LTA)
Remark: Key Performance Indicators set in accordance with the State enterprise Performance Appraisal (SEPA) and Corporate Key Performance Indicators are set to correlate with performances of the President and Chief Executive Officer, who serve as a members of the PTT Board of Directors.
 
 
Communication and Training
To foster understandings in business and human rights, PTT continues to raise awareness to all employees through internal journal articles, magazines and public relations emails. The content is drafted to ensure reader’s ease in comprehension and cover contents about human rights principles, approaches, management systems and case studies from other businesses. PTT also conducted PTT Group’s Sustainability Management and PTT Integrated Management System (PIMS) training courses. The content covers human rights performances in business sector, as well as best practices in business operations with respects to human rights. The trainings commenced in 2014. As of now, there have been 47 classes of participants. The number of participants is equivalent to 78 % of all employees.
 
In 2017, PTT conducted an academic seminar titled ‘Business and Human Rights’ for executives and employees in functions relevant to human rights performances. This includes Corporate Regulations and Laws, Social Enterprise, Strategic Procurement, Land Ownership, Safety and Security, Customer Relations, and Corporate Communication Functions. The seminar’s content covers overview of international human rights management, the government’s directions, and how human rights issues can be cascaded from the businesses to state enterprises.
 
For training of security officers, PTT stipulated that the security companies must provide necessary trainings to the security officers in line with the company’s Term of References. Emphasis is placed on prevention of human rights violations, e.g. raising awareness that security and safety are basic human rights for all, avoiding the use of violence against others, and no use of violence against offenders. Moreover, security officers do not have the authority to make arrests, unless the offenders committed the offense on PTT’s property. The accused are presumed innocent until proved guilty.
 
 
 
Business Partners throughout Supply Chain
PTT supports and encourages PTT’s business partners to operate with consideration and respect to human rights, and in compliance with PTT’s Human Rights Guideline. Suppliers are screened according to Environment, Social and Governance (ESG) criteria, in addition to fundamental criteria of quality and finance. Notably, PTT adopted the Supplier Sustainable Code of Conduct which covers issues on environment, labor rights, business ethics, etc. The Code of Conduct is enforced on suppliers with the contract values at over 2 million baht, and/or whose work affects safety and environment. This includes vendors who wish to register as suppliers with PTT. There are also performance monitoring, particularly for critical suppliers and suppliers of high risks, to ensure their operational improvement and avoid social and environmental impacts from their operations.
 
 
 
 
 
 
 
 
Human Rights Due Diligence
PTT Group Human Rights Management
In 2016, PTT has set up PTT Group Human Rights Management System to serve as a guideline for management of human rights issues related to PTT Group’s business operations. It also supports PTT Group’s efforts in applying the necessary human rights management processes that covers all of PTT Group’s activities which may incur human rights impacts throughout the operation cycle. These activities include merger and acquisition, construction, and decommission. PTT has announced its adoption of the system, and communicated to companies within PTT Group accordingly to ensure appropriate adoption of the system.
 
 HRmanagement.png
Diagram 1 Illustration of PTT Group’s human rights management
 
 
 
 
Human Rights Risks Assessment
PTT Group’s Human Rights risks have been included as a part of the enterprise risk management. It was allocated as risks at functional level. Today, relevant units at functional level are managing human rights risk effectively, through risk management plan and reporting to relevant Committees. This comprehensive management approach resulted in zero human rights complaints. However, in case of high impacts and severity, PTT will consider management of human rights risks at a higher level, including business unit & support functional level and corporate level, respectively.
 
PTT has conducted human rights risks assessment for PTT Group since 2015. The latest review of operational areas and risk assessment was conducted in 2018. This risk assessment addresses various operations in industry groups and operational areas. The assessment covers 117 operational areas in 29 countries where PTT operates. The process covers identification of key issues, impacts on vulnerable groups, and the likelihood of impacts at the national-level of operations. Vulnerable groups include women, indigenous people, LBGTQI, underprivileged people and children. The objective behind this risk assessment is to consolidate corporate human rights risk reports, in conjunction with project-level human right risks reports. The process of human rights risk assessment is as follows. 
 
 HR2.PNG
 
 
 
Human rights risk ratings are assessed on two factors: impact and likelihood.
 
 
 
 
Risk Rating Scale: Impact
The human rights impact depends on its scale, scope, and irremediability (any limits on the ability to restore those affected to a situation at least the same as, or equivalent to, their situation before the adverse impact).
 
 

Impact Level

Description of Impacts

4​ ​Critical
- Human rights impacts affect a larger scale of population groups beyond the scope of operational areas
- The Company is unable to control or mitigate human rights impacts to restore the ability of an individual to enjoy his or her human rights
- Impacts / Situations of human rights abuses require the involvement of independent, trusted expert advice from outside to aid companies in mediating issues
3​ ​Major
- Operation is knowingly providing practical assistance or encouragement that has a substantial effect on the commission of human rights violation (Legal Complicity)
- Human rights impacts were caused by the Company’s operations or value chain, impacting stakeholders in operational areas
- The Company has human rights-related conflicts with Vulnerable Group
​2 Moderate
- The Company receives benefits from human rights violations in the hands of other entity (Non-legal Complicity)
- Business fails to address human rights-related concerns raised by concerns raised by internal or external individuals or groups
​1 Minor - Potential human rights impacts raised by internal or external stakeholders are resolved/prevented, using the Company’s effective grievance mechanisms.


 
Risk Rating Scale: Likelihood

Likelihood Level

Description of Likelihood

4​
​Likely
(>25%)
The event has occurred in the operation several times per year (>25%)
3​
​Possible
(10-25%)
The event occurred in the operation several times (10-25%)
​2
Unlikely
(1-10%)
The event rarely occur in the operation, but possible to occur (1-10%)
​1
Rare
(<1%)
The event occurred several times in the industry of the operation but unlikely to happen in the operation (<1%)

 

PTT identifies stakeholder groups who are potentially affected by its operations through the company’s sustainability materiality assessment process. The process assesses the needs of all stakeholder groups through various channels, including meetings, complaint mechanism, and questionnaires. The issues identified in the process will then be prioritized in accordance with its significance to the company, and to the stakeholders, to ensure the balanced management of all material issues. As shown in the list of PTT’s materiality, four issues out of the top five issues are significantly related to human rights. This includes climate change, security and emergency management, corporate citizenship, and human rights management.

 

Issues
Country 
Shareholders Suppliers Customers Community Employees
Climate Change
Climate Change Management Scope 1-3
​Ministry of Natural Resource and Environment / Ministry of Energy ​- -
​-
​- ​PTT internal units with the mandate on environmental management, and companies in PTT Group
Security, Safety and Crisis Management ​ ​ ​
​Continuous business operation for the country's energy security
Ministry of Energy ​- -
 
-
 
- ​-
Continuous business operations to protect lives/assets/benefits of community in the plants' vicinity
​- - -
 -
Community in the vicinity of PTT operational areas ​-
​Continuous business operations to protect shareholders' benefits ​- Shareholders - ​- ​- ​-
​Continuous business operations to protect suppliers' benefits, enabling continued business partnership, as well as product and service delivery as agreed ​- ​- Suppliers - ​- ​-
​Continous buisness operation to protect customers' benefits, ensuring product and service delivery as agreed ​- ​- ​- Customers ​- ​-
​Operating business that protect lives, assets, and benefits of all employees, as well as protect reputations, image and activities that create values to the company ​- ​- ​- ​- ​- PTT employees and other companies in the Group
​- Manage business risks along the supply chain in order to minimize business interruption
- To prevent Thailand's energy shortage   
​- Household Sector
- Transportation Sector
- Industrial Sector
- Power Sector (EGAT)
Prevention of human rights violation within PTT Group, which will severely affect reputation of the group Contractors who works alongside employees in the same workplace Customers who enter PTT's service areas or properties. ​Community in the vicinity of PTT operational areas PTT employees and other companies in the Group
​Emergency management for PTT's business continuity ​-
​Appropriate response to major oil spill - Shareholders ​- ​- ​Community in the vicinity of PTT operational areas ​-
Corporate Citizenship ​ ​ Support in Education ​- ​- ​- ​- ​Community in the vicinity of PTT operational areas ​-
​Healthcare ​- ​- ​- ​- Community in the vicinity of PTT operational areas ​-
​Environmental Stewardship ​- ​- ​- ​- ​Community in the vicinity of PTT operational areas ​-
​Support in Economy/ Employement ​- ​- ​- ​-
 
- Communities surrounding PTT's operations
 
- Communities in project support areas, such as in pipeline construction projects
 
- Communities in PTT's network

- Society at the national level
Support in Education

- Schools in the areas surrounding PTT's operations


- Schools in the company's network


- University in the company's network


- Youths participating in the project

​Environmental and Natural Resource Conservation

 

- Communities surrounding PTT's operations
 
- Communities in the company's network throughout Thailand

 

 

 
- Society at the national level
 
- Academia, academic institutions, and NGO

 

​Human Rights Amendment of labour laws regarding minimum standard of working conditions in state enterprise ​- ​- ​- ​- ​- ​PTT employees
Employees are not aware of greivance mechanism in case they have concerns of being treated unfairly by supervisors. ​- ​- ​- ​- ​- ​PTT employees
​Human Rights Management ​- ​- ​- ​- ​- PTT executives and employees / Companies in PTT Group
 
 
 
 
 

 

 

Grievance Management and Remediation
Grievance Management

PTT has developed grievance mechanism to receive complaints through internal and external channels, in order to ensure accessibility of all stakeholders and ensure the process that addresses all kinds of grievances, which also include human rights grievances.

 

Stakeholders Channels to submit complaints and grievances
Employees ​• State Enterprise Employees Union of PTT PLC
• Human Resource Management of each business unit
• Employee Relations Division, through employee relations complaint system via phone or internet
• Labour Relations Committee meeting, through employee representatives
• Joint Consultation Committee (JCC)
• Through pttvoice@pttplc.com, Employee Relations grievance system
​Suppliers, Customers, and External Parties ​• PTT Customer Relations (Call Center 1365)
• Submit complaint letters directly to CEO, Audit Committee, Executive Vice President, Office of Corporate Audit, Executive Vice President, Corporate Human Resource, or Vice President, Office of the President and Corporate Secretary, and Investor Relations.
• Through various online channels, such as www.pttplc.com; www.pttbluecard.com; and Facebook pages of PTT News, We love PTT, PTT Blue Society, PTT Blue Card Application, etc.
• Supplier meetings
Communities surrounding PTT’s operations ​• Assign community relations officers to engage with local communities in accordance with the plan in each operation, to receive complaints, discuss needs and expectations, and listen to potential impacts from PTT’s operations. All feedbacks will be used to improve the operation, design better complaint receiving process, and develop communication channels that are suitable to each area.
 

 

PTT is cognizant of the significance of whistleblower protection. PTT has an established procedure on whistleblower protection, including protection measures and fair process. The procedures and measures also cover witness and individuals who provide information or evidence. The company also sets up reasonable timeline for complaint management. For each step along the process, complaints received from employee must be manage within 30 days, while complaints received from external complainants must be investigated, resolved, and notified to complainants of its resolution and progresses within 7 working days. In 2018, there was no complaints incurred from human rights violations, or non-compliance practices against human rights laws.

 

 
Remediation 
PTT prioritizes protection and remediation procedures for all individuals affected from its operations. The company provides channels to receive complaints particularly in crisis and emergencies in all areas of operations, set the process for expedient access to remedy, both as financial remedies (compensation, financial supports), and non-financial remedies. Non-financial remedies may include establishing emergency point to receive grievances and complaints to provide initial remediation, providing advices or recommendation supports from specialist, as well as providing communication channel to listen to concerns and complaints from stakeholders.

PTT has open channels for all affected individuals to report their complaints at the complaint mechanism of each project, or through PTT call center. For each complaint received, PTT will analyze the causes, find solution, and identify prevention measures. In case that the prevention and remediation processes cannot accommodate initial solution, PTT will designate the mechanism on prevention and remediation through grievance mechanism in the form of a tripartite taskforce. The taskforce consists of representatives from stakeholders including representative from local administration bodies, community leaders and relevant government agencies. This is to ensure that the case is properly and effectively managed, for the satisfaction of all parties.