Positive and Negative Impacts

Innovation and technology play pivotal roles in shaping the efficiency and effectiveness of an organization's business operations. Technological advancements in various industrial sectors are significant variables that necessitate organizations to constantly update their technology. Adapting to these changes is crucial as they can have both positive and negative impacts on organizations. However, integrating technology into business operations is essential for maintaining consistent product quality, enhancing service efficiency, meeting consumer needs, and fostering further innovation for sustainable business growth and competitiveness. The dynamic business landscape driven by innovation and technology continuously evolves, prompting organizational adaptation to thrive in an uncertain environment. Yet, these changes may also pose challenges, affecting areas such as financial resources, skillsets, and other valuable assets. For example, inaccurate market demand forecasts can lead to financial losses, and investing in unsuccessful projects due to simultaneous innovation development can incur unnecessary costs.

Technological change has had a significant impact on employment trends over the years, alongside other key business drivers that can affect industries worldwide. These include technological advancements and innovation, the adoption of robotics and automation, and the implementation of new operating systems into current operations. The rapid pace of technological change also plays a major role in pushing humans to develop skills and knowledge in areas that technology cannot replace.

The impact of innovation and technology on the industrial sector is quite clear. For instance, technological advancements in the industrial sector have led to increased demand for labor, such as in the supervision of production machinery, resulting in job creation and economic and urban community expansion. However, at the same time, it may result in problems such as labor migration from rural to urban societies, forming industrial communities like industrial estates, making resource management difficult, or causing pollution. Additionally, heavy reliance on imported technology or technology from other countries alone may lead to trade imbalances. Therefore, developing and creating technology domestically can help a country advance technologically, reduce dependence on foreign technology, increase income, and enhance economic stability.

PTT has changed its organizational vision in March 2021 from the previous "Thai Premier Multinational Energy Company" to "Powering Life With Future Energy and Beyond" after using the former vision for more than 10 years. Currently, the organization has successfully achieved its goals, being the company with the largest market capitalization in the country and conducting businesses that rank globally, being ranked by Fortune 500 and recognized as the National Energy Company. The new vision focuses on "Powering life," signifying the organization's commitment to driving energy for people and the country, reflecting PTT's identity as it moves forward with new energies and beyond (Future Energy and Beyond). PTT supports the creation and development of innovations across the organization. The innovation strategies of PTT vary, including the development of new initiatives led by internal units within the organization (Inside-Out) or receiving support from responsible units for technology development through PTT's innovation institute or digital development units to support research and development to deliver new products or services for business units to commercialize as planned. Moreover, PTT's innovation institute also provides consultancy to solve technical problems in processes and various technical services. Importing innovations from external sources by innovation and digital development units (Outside-In) will promote and accelerate innovations to become new businesses rapidly. Both innovation development approaches receive budget and technology support for prototyping to test ideas or market feasibility. If testing shows commercial viability and gains management approval for new business development, it can be established as a new company or a project under AlphaCom to test the market for new innovations and can increase investment if the market shows good growth potential.

Innovation related to PTT's business operations encompasses products, services, business models, various processes, and aligning with the new vision. Therefore, since 2022, PTT has expanded its business scope into other industries beyond the energy sector according to its key operational strategies and goals in three main areas: Business Growth, New Growth, and Clean Growth. This expansion includes venturing into the electric vehicle (EV) industry, the pharmaceutical industry, where PTT collaborates with pharmaceutical organizations to produce the country's first cancer treatment drug, medical equipment business, and nutrition business, among others. These innovations aim to enhance human well-being. Additionally, PTT considers the environmental impact of its business operations, leading to innovations for environmental sustainability, such as the "ReAcc" platform (reacc.io), a blockchain-based platform for trading renewable energy certificates, the EVme platform, a platform for electric vehicle lifestyle services, and innovations promoting greenhouse gas emission reduction, among others.

At present, PTT effectively manages its internal stakeholder relations through systematic channels for feedback and improvement across various operations. Employees have the opportunity to voice their concerns or provide suggestions online, empowering them to contribute to organizational innovation and knowledge creation. This proactive approach not only enhances PTT's reputation and goodwill but also fosters trust among the public.

Objectives/ Goals

PTT is steadfastly committed to integrating ESG considerations, which reflect the expectations, needs, and concerns of diverse stakeholders, as pivotal elements in innovation development across various domains. These encompass initiatives, and collaborative endeavors with business partners aimed at propelling the commercialization innovations stemming from PTT’s innovation institution, employee-led innovation of groundbreaking products. Such products not only enhance business value but also align with the long-term vision and objectives established by stakeholders. PTT’s strategic focus lies in future energy solutions, including renewable energy, energy storage systems, electric vehicle ventures, and hydrogen energy utilization research. These initiatives bolster Thailand's pursuit of carbon neutrality by 2050 and attainment of net-zero emissions by 2065, as per the Ministry of Energy's policy. Clear innovation development targets have been delineated as follows:

• Each year, there is an investment budget and expenditure for innovation activities of all types combined, amounting to no less than 10% of the total profit for the same fiscal year.
• By 2030, aim to generate a net profit of 15,000 million baht from innovation initiatives, with at least 2,500 million baht derived from in-house developed innovations.

Management Approach

Innovation and Product Safety
PTT Innovation Management Policy

PTT places a high value on fostering creativity and innovation throughout the organization, whether it be in product and service development, streamlining work processes, or exploring new business opportunities. These endeavors aim to enhance operational efficiency, bolster competitiveness, and cultivate a culture of creativity and innovation essential for long-term sustainability. To formalize its commitment, PTT has established an Innovation Management Policy, signed by the Chairman of the Board of State Enterprises and the Chief Executive Officer and President, serving as a guiding framework for all executives and employees. The key provisions of this policy are outlined as follows:

• Article 1: Encourage the adoption of innovation to support operations and implement an effective innovation management process, complete with designated responsible personnel at the corporate level, defined roles and responsibilities, and established operational procedures.
• Article 2: Develop an innovation management master plan, allocating resources and budgets appropriately to promote innovation initiatives.
• Article 3: Foster the development of personnel capabilities and creativity to empower them to conceive, implement, and effectively apply innovations in their respective work processes.
• Article 4: Ensure that the innovation management process complies with the applicable laws and regulations of the countries in which PTT operates.
• Article 5: Promote activities that foster a culture of creativity, facilitate knowledge management, and encourage the exchange of resources and innovation development expertise across different functions.
• Article 6: Mandate the evaluation of the effectiveness of the innovation management process, along with monitoring and reporting of operational outcomes to relevant executives and committees. This feedback loop aims to provide recommendations and drive continual improvement aligned with the innovation master plan.

All executives and employees are entrusted with the responsibility of supporting, promoting, and adhering to the Innovation Management Policy, serving as exemplars in championing innovation management to continually enhance the efficiency and competitiveness of PTT's business operations.

To ensure the effective implementation of PTT’s Innovation Management at the corporate, business unit, and individual levels, PTT has established a structured Innovation Governance Framework. The Enterprise Risk Management Committee (ERMC) oversees the overall execution of innovation management, ensuring its integration into the organization. This is facilitated through the PTT Innovation Management Committee (PTT IMC), which comprises senior executives from each business unit. The committee is responsible for reviewing, promoting, and supporting innovation initiatives across the organization. Furthermore, the PTT Innovation Management Working Team, consisting of department managers and representatives from relevant functions, plays a critical role in supporting and driving innovation initiatives within their respective areas.

Innovation performance is systematically monitored and reported at least once per quarter or as required. In 2024, the PTT IMC successfully conducted quarterly meetings to assign strategic directions and track progress, ensuring the effective execution of the Annual Innovation Action Plan and the Innovation Master Plan. As a result, PTT achieved 100% completion of the planned innovation initiatives, fully meeting the established objectives and strategic targets.

PTT's Innovation Management Process and Innovation Master Plan 

PTT's innovation development follows the PTT Innovation System, operating under the guiding principle of "ASAP – Innovation Happens When Action Begins Immediately." PTT’s innovation development process originates from two channels including (1) Innovation Development Based on PTT’s Strategic Goals (Top-Down Approach) Governed by the PTT Management Committee (PTTMC) and the Corporate Plan and Risk Management Committee (CPRC) and (2) Innovation development stemming from the collection of creative ideas from both internal and external sources (Bottom-Up Approach) is integrated and managed holistically by the Enterprise Risk Management Committee (ERMC) and the PTT Innovation Management Committee (PTT IMC) under the PTT Group Portfolio Management framework.

Appointment Order for the PTT Innovation Management Committee (PTT IMC)

Innovations driven by PTT’s strategic objectives originate from the Top Executive Thinking Session (TTS) and Strategic Thinking Session (STS), which provide a framework for business units to develop innovation and technology initiatives. These efforts focus on enhancing production processes, creating new products and services, and supporting innovation across the PTT Group. Additionally, innovation is pursued through New Initiative projects, ensuring alignment with the organization's strategic direction.

PTT gathers creative ideas from both internal and external sources, leveraging various channels such as Productivity Improvement Projects, employee knowledge-sharing sessions, and innovation competitions like the PTT Inno Award. Collected ideas undergo a screening process before being presented to the PTT Innovation Management Committee (PTT IMC) or senior executive meetings, where recommendations, strategic directions, or directives are provided to scale successful initiatives across other areas, fostering organization-wide innovation.

PTT recognizes the critical importance of innovation management, emphasizing technology capability development, innovation creation, and optimal resource utilization. The company is committed to systematic, efficient, and sustainable technology and innovation management to ensure continuity and long-term impact.

In accordance with PTT’s vision, “Together for Sustainable Thailand, Sustainable World,” which underscores the importance of balancing both competitiveness and sustainability, PTT has formulated its Innovation Management Strategy to ensure alignment with the organization’s strategic direction.

The development of this strategy was based on comprehensive studies, in-depth analysis, and structured deliberations to assess the organization's strengths, weaknesses, opportunities, challenges, capabilities, and constraints. These insights informed the formulation of a well-defined, measurable strategic direction, along with clear policy frameworks and objectives. Furthermore, strategic initiatives and action plans have been established to ensure consistency and continuity in PTT’s innovation management approach, as illustrated in Figure below.

Innovation Management Strategic House

PTT's vision and innovation management strategy is “Driving Innovation to Enhance PTT Performance and Sustainability.” To support this vision, PTT has undertaken a review of its innovation key performance indicators (KPIs), as follows:

1. Financial KPI: Net income generated from innovation initiatives.
2. Non-Financial KPIs:
   
   • Environmental Sustainability: Measuring greenhouse gas (GHG) reduction resulting from innovation projects.
   • Organizational Culture: Fostering an innovation-driven culture among employees and executives, assessed through the "I" Score, with a target of exceeding 80%.

Based on this vision, PTT has established three strategic pillars and corresponding innovation management initiatives:

• Strategic Pillar 1: Winning Innovation Strategy 
  With three main targets as follows:
  
  • Align innovation strategy with overall corporate strategy.
  • Define the direction and management approach for innovation.
  • Set measurable innovation KPIs, conduct performance evaluations, and allocate resources effectively.
• Strategic Pillar 2: Innovation Process for Sustainable PTT
  With two main targets as follows:
  
  • Leverage innovation to enhance operational efficiency and improve business competitiveness.
  • Develop innovations that contribute to reducing greenhouse gas emissions and optimizing resource utilization.

• Strategic Pillar 3: Nurturing Innovation Culture and Capabilities
  With two main targets as follows:
  
  • Develop employees' capabilities to support technological and innovation advancements.
  • Embed innovation as a core element of PTT’s corporate culture.

The formulation of this Innovation Management Master Plan will provide PTT with a structured and integrated framework for innovation management, ensuring alignment with the company’s operational policies. Furthermore, it will establish well-defined action plans and measurable key performance indicators (KPIs), fostering the development of innovations across products and services, operational processes, business models, and strategic initiatives at all levels of the organization.

PTT Innovation Management Master Plan (2025–2029)

In today's dynamic business landscape, staying attuned to global trends and shifts is paramount. PTT recognizes the significance of adapting to evolving technologies, changing natural resource dynamics, and shifting societal lifestyles. These factors serve as guiding principles for the development of products and services that align with PTT's vision, strategic direction, enterprise plan, and stakeholder expectations.

PTT is firmly committed to research and development (R&D) and the procurement of products that prioritize safety and environmental and social responsibility. This commitment is deeply rooted in the Company's Quality, Security, Safety, Occupational Health, and Environmental Policy. PTT employs Life Cycle Assessment (LCA) principles as a comprehensive tool to evaluate the environmental impacts across a product's entire life cycle, from raw material acquisition to end-of-life product management throughout the supply chain. Moreover, health and safety impact assessments are conducted for all products and services, guiding the design and development process to minimize environmental impacts and ensure safety across all stages, including raw material selection, production, transportation, and implementation.

Currently, PTT and its subsidiaries are collaboratively building a comprehensive LCA database for every petroleum and petrochemical-based product. This database facilitates ongoing reviews and considerations to support the design and enhancement of new products.

Safety Information for Products and Services^{GRI416-2, 417-2, 417-3, 418-1}

PTT ensures that all its products and services, including those provided by contractors such as automobile product transportation, prominently display accurate safety information and warning labels in compliance with applicable laws, regulations, and international standards. Furthermore, PTT is dedicated to disseminating knowledge and information about its products, aiding customers in making informed purchasing decisions through transparent marketing and communication activities. Through a variety of marketing and communication initiatives, the Company ensures transparency and authenticity, refraining from any deceptive tactics or dissemination of false information regarding its products. All advertisements, whether visual or audio, undergo approval by the Television Advertising Censorship Board. Additionally, PTT prioritizes consumer education by organizing seminars and stakeholder visits regularly to maximize benefits for all parties involved.

In 2023, there were no instances of non-compliance with regulatory requirements, including safety regulations, occupational health laws, product labeling regulations, and the maintenance of customer personal information and product marketing communications.

Green Label

PTT and its subsidiaries are dedicated to innovating and developing environmentally friendly products. This commitment includes the creation of alternative energy sources, green petrochemical products, and process management aimed at enhancing energy efficiency and reducing greenhouse gas emissions. There are plans in place to introduce even more eco-friendly products to the market in the future. Furthermore, PTT is actively involved in renewable energy initiatives to bolster the nation's long-term energy security. This involves establishing pilot charging stations and designing solar charging facilities at PTT service stations. Additionally, collaborative efforts with leading car manufacturers are underway to promote the adoption of electric vehicles.

To raise societal awareness about environmentally friendly products and services, PTT has introduced the GREEN FOR LIFE certification symbol. This emblem acts as a seal of approval for products carrying the GREEN FOR LIFE label, signifying their eco-friendliness. Aligned with international standards (ISO14021:2016) and firmly rooted in scientific principles, this certification ensures the accuracy, precision, and clarity of information, safeguarding consumers against confusion. The goal is to enhance consumer understanding of the environmental attributes of products within the PTT Group.

Examples of Projects or Key Activities 

Life Cycle Assessment (LCA) Project^{SDGs 9.4}

PTT acknowledges the significance of Life Cycle Assessment (LCA) in line with its vision of "Powering Life with Future Energy and Beyond." In 2023, PTT undertook LCA evaluations for solar photovoltaic (PV) cells and hydrogen. The insights gained from these assessments will be instrumental in driving the development of future energy-related technologies and innovations.

GREEN FOR LIFE Project^{SDGs 9.4}

The GREEN FOR LIFE Project contributes to Sustainable Development Goal (SDG) 9.4. PTT continually enhances its green product certification guidelines under the GREEN FOR LIFE label. In 2023, one product earned certification, marking the 116th product to undergo the rigorous process. All certified products are eco-conscious, actively contributing to carbon footprint reduction and proudly displaying the Carbon Footprint Reduction Label awarded by Thailand Greenhouse Gas Management Organization (Public Organization). These certified products include electricity, potable water, and mineral-free water from Global Power Synergy Public Company Limited, as well as ethylene from Global Power Synergy Public Company Limited, and linear low-density polyethylene (LLDPE) pellets from PTT Global Chemical Public Company Limited.

PTT Group Geo-spatial for Maritime System (PTT Group - GMaS) Project

PTT has collaborated with the Geo-Informatics and Space Technology Development Agency (Public Organization) to develop data and visualization components for local impact assessments, aiding coastal environmental management in Rayong province. These components are designed for immediate responsiveness, supporting environmental incident management, particularly in cases of oil spills. They facilitate predicting oil movement directions and mapping environmentally sensitive areas affected by oil pollution in Rayong province, encompassing both land and marine areas, aligned with international standards. This data serves as vital information for planning oil spill mitigation strategies and prioritizing protection or restoration of marine and coastal resources. Furthermore, it guides future development and management planning for coastal areas to ensure efficient ecosystem restoration and biodiversity preservation. In 2022, this data was utilized to forecast oil spill movement trends, such as those occurring at single-point moorings in the open sea or oil transfer points in the sea, situated at the Map Ta Phut Industrial Estate in Rayong province.

Development of Innovations in Electric Vehicle Businesses and Environmentally-related Businesses

Given the current global energy landscape's shift towards cleaner alternatives and increased environmental awareness, coupled with the imperative for businesses to adapt to a low-carbon society, PTT, as an energy-focused entity, has expedited the development and expansion of new ventures to align with the future of energy and the electric vehicle (EV) value chain. Under the umbrella of Arun Plus Co., Ltd., PTT has ventured into the EV Charging Platform business, while key subsidiaries like Horizon Plus Co., Ltd., have been instrumental in establishing comprehensive domestic electric vehicle production platforms. Furthermore, strategic investments in electric vehicle battery technology through Nuovo Plus Co., Ltd., have been made to bolster business resilience. Collaborating closely with PTT's Innovation Institute and business development units, efforts are underway to drive innovation and technology adoption, facilitating the integration of EV and environmentally sustainable businesses. This includes the establishment of the world's first 24m semi-solid battery production facility, offering battery swapping services for electric motorcycles, electric car rentals, and the development of cutting-edge EV chargers and communication systems. Preparatory measures are also being implemented, such as laboratory enhancements for EV and battery testing, research into e-waste management, and other initiatives aimed at ensuring the sustainable operation of the EV value chain business in the long term.

Production of Sustainable Aviation Fuel (SAF)

PTT collaborates with its subsidiary companies, including Thaioil, GC, IRPC, and OR, within the PTT Group, to advance the production of Sustainable Aviation Fuel (SAF). Leveraging cutting-edge production technologies, i.e., Hydroprocessed Esters and Fatty Acids (HEFA) and Alcohol to Jet (ATJ), the initiative targets a significant reduction in greenhouse gas emissions within the global aviation sector.

 

Indicators, Performance, and Key Awards (Innovation and Product Stewardship)

Green Products and Services

Products certified with the Green for Life Label

Bio-Fuel production volume for 2023

Innovation and product safety
Research and development innovation performance

Adherence score to SPIRIT values (%)

Adherence score to SPIRIT values in innovation behavior from 2020-2023 (%)

Awards

PTT was honored with the 2023 SET AWARDS by the Stock Exchange of Thailand, in collaboration with the Finance and Banking Journal. The prestigious recognition includes three notable awards: the Sustainability Awards of Honor, awarded for the third consecutive year, the Innovative Company Awards of Honor, and the Best Investor Relations Awards. These accolades commend PTT's commitment to sustainability, evidenced by its clear strategic direction and business plan transformation. Noteworthy initiatives encompass investments in renewable energy ventures, the development of electric vehicle ecosystems, and ventures transcending traditional energy paradigms. These efforts aim to catalyze new industries and enhance the quality of life for the Thai populace. Moreover, PTT's proactive stance towards achieving carbon neutrality by 2040 and net-zero emissions by 2050 underscores its dedication to supporting Thailand's sustainability goals set for 2065. These milestones exemplify PTT's genuine commitment to driving business practices towards sustainability.

For the distinguished Innovative Company Awards of Honor, recognizing consecutive wins of the Best Innovative Company Awards for three years running, PTT has secured yet another accolade this year. This recognition is attributed to the development of the "PTT SCR Catalyst," engineered to eradicate nitrogen oxide (NOx) emissions from industrial exhaust, notorious for their detrimental environmental and health effects. Notably, NOx is a noxious gas linked to air pollution, acid rain, PM2.5, and respiratory ailments, among other issues. The groundbreaking PTT SCR Catalyst boasts heightened efficiency, doubling its operational lifespan to a decade from its former five-year duration. Additionally, it diminishes waste buildup and operates effectively at lower temperatures, enabling surplus heat utilization. With three petty patented innovations, it serves as an eco-friendly solution, reducing reliance on foreign technology, fostering domestic catalyst accelerator businesses, and aligning with forthcoming industry trends. PTT remains steadfast in its commitment to sustainable growth, societal responsibility, and environmental stewardship. Presently, the PTT SCR Catalyst has been actively employed at PTT's natural gas separation facility for over two years and is poised for commercial expansion to broader target demographics, both within and outside the PTT Group.

PTT has also been awarded the highest AAA rating in the SET ESG Ratings for the year 2023, demonstrating its commitment to sustainable business operations development and providing investors with additional support to invest in PTT.

Customer Relationship Management

PTT adopts a segmented approach to customer relationship management across its business units, tailored to various customer groups corresponding to different product lines. This strategy covers comprehensive assessments of customer needs and expectations, agile product development, and continuous improvement efforts to enhance satisfaction and foster long-term loyalty towards products and services. The integration of customer-centric processes with other relevant systems is systematic, with well-defined timelines for execution and refinement. This includes activities such as defining and reviewing customer learning channels, analyzing market information, and implementing processes to build customer loyalty.

Each business unit adheres to guidelines for systematically fostering customer relationships, albeit with variations tailored to specific customer groups. For instance, customer feedback is collected through diverse communication channels such as the Customer Service Center, official website, Line Official accounts, and the uVoice application for grievance resolution. Additionally, feedback is gathered via the 1365 Contact Center and annual satisfaction surveys to derive insights useful for product development. Systematic and ongoing customer visits, seminars, and the establishment of an efficient customer database using modern IT infrastructure are prioritized to meet evolving business needs. Furthermore, various activities are organized to foster strong bonds with customers, ensuring sustained engagement

Charters and Service Standards

PTT is dedicated to providing exceptional service to all customer segments equally, aiming to foster satisfaction and engagement. This commitment is realized through the establishment of processes and service standards that are responsive to customer needs and expectations. These standards are designed to encompass the entire customer journey (Customer Journey) at each touchpoint (Touch Point), as outlined in the service blueprint (Service Blueprint) and standards across all business units. This ensures readiness and continuity of service (Accommodate), adhering to standards at every PTT service point, with a strong emphasis on safeguarding and preserving customer confidentiality (Security), providing services with transparency and ethical conduct (Ethics), and upholding principles of honesty and responsibility (Trustworthy) to all customer groups.

In 2023, by adhering to the charters and maintaining consistent service standards, it was observed that the outcomes of customer management remained in line with PTT’s objectives. The Company effectively addressed the needs and expectations of its customers, as evidenced by continually improving results in customer satisfaction surveys. This success can be attributed to its unwavering commitment to delivering exceptional service, encapsulated in the Company’s motto "Customer is Our Precious ASSET", as well as its practice of setting satisfaction survey benchmarks at every touchpoint. These efforts have significantly enhanced PTT's service standards, ensuring efficient customer interactions.

Charters and Service Standards

Customer Satisfaction

PTT prioritizes the highest level of satisfaction for customers purchasing its products, as well as consumers utilizing these products. This commitment entails providing products at fair prices, ensuring quality, and upholding responsibility towards customers and consumers alike. Customer satisfaction is a key performance indicator for PTT, assessed annually through comprehensive surveys conducted by external agencies. These surveys segment customers according to business units, encompassing both natural gas and international trade customer segments. Employing standardized methodologies, the survey process encompasses qualitative and quantitative data collection to ensure completeness and transparency. Each business unit committee considers survey feedback to inform the development of plans and annual operations. This iterative process aims to enhance products and services to meet the diverse needs of customer groups. PTT continually evaluates and refines its satisfaction survey process to address dissatisfaction and improve customer engagement. Moreover, PTT has developed a Data Analytics system to harness the potential of collected research data. This digital system enables efficient analysis of large datasets, empowering business units to plan improvements and foster proactive customer relationships effectively. By leveraging this system, PTT ensures rapid access to accurate information, fostering customer retention and enhancing satisfaction levels.

Policies and Procedures for Complaints Management

PTT upholds a steadfast commitment to managing complaints, requests, and suggestions from all customer groups equitably and effectively. This commitment is upheld through established policies and procedures for complaints management, executed via diverse communication channels. The Company maintains a comprehensive system for categorizing and storing information according to customer groups, ensuring confidentiality and safeguarding complainant rights. Emphasizing safety and mitigating potential damages, PTT strives to instill confidence and provide timely responses to customer needs and expectations, fostering long-term engagement and loyalty essential for sustainable business operations.

In 2023, PTT underwent a thorough review of its policies and operational protocols concerning complaint management. This review was based on performance indicators such as recurring complaints, overall satisfaction with complaint resolution, and other relevant factors. The objective was to refine the complaint-handling process, define complaint resolution, set clear reporting timelines, and enhance the tracking of complaint progress. For example, significant complaints and requests were monitored and reported to senior management at every level within 15 and 30 days, respectively. This approach aimed to cater to the varied needs and expectations of customers across different demographics.

Policies and Procedures for Complaints Management

Indicators, Performance, and Key Awards (Customer Relationship Management)

Product and Service Development to Meet the Needs of Natural Gas Customers

PTT remains steadfast in its commitment to delivering products to customers consistently, even amidst the challenges posed by the "New Normal" brought about by the COVID-19 pandemic. From procurement management to natural gas extraction, maintenance, customer service, and gas station operations, PTT ensures the stability and security of the nation's energy supply. Furthermore, PTT has tailored various products and services based on extensive customer surveys, leveraging technology and digital systems for swift responsiveness. Key initiatives include:

1. Development of the Customer Service Center (CSC) Website for Power Plant and Natural Gas Wholesale Market: This initiative aims to serve as a communication channel to enhance understanding of the natural gas business. It provides information about the benefits of natural gas to customers, including energy situations, beneficial training courses for collaborative business operations, frequently asked questions, and serves as a platform for disseminating media and public relations materials to customers, ensuring timely updates on news and developments.
2. Line Official Channel Enhancement: PTT has improved its Line Official channel to provide customers with convenient access to energy price updates, news, and educational content, integrating seamlessly with the CSC Website.
3. Development of the Gas Quality Notice System: This involves expanding the use of data from the Shipper Control Room to notify and coordinate with customers in cases where there are changes in the quality of natural gas. The objective is to ensure that customers are informed and prepared to adjust their machinery systems promptly to accommodate the gas quality changes.
4. Digital Technology Utilization: Applying digital technology to enhance management and product delivery capabilities to customers, such as the Adaptive Planning Optimization system for assessing the production capabilities of each gas separation plant based on actual gas inlet conditions and gas quality on a daily basis. Additionally, implementing the Global Plant Wide Advanced Process Control system to respond to fluctuating energy situations from external conditions. Furthermore, advancements have been made in service offerings to customers, including predictive maintenance services through The Predictor company established by PTT. This service provides forecasts of damage and abnormal behavior in advance before occurring on machinery or equipment used in the production process. Moreover, the development of the E-Nose system for monitoring odors around the factory premises to detect and assess the origin of odors, determining whether they originate from the factory or elsewhere.
5. Voice of Customer: From analyzing customer feedback in the past year, it became evident that industrial clients are increasingly concerned about energy consumption trends. This has prompted the development of energy management systems and automated data analytics solutions. Among these, PTT NGR EMOS and PTT NGR AIOT Platform stand out, utilizing IoT, Data & Analytics, and Edge Computing technologies to cater to industrial clientele. These digital tools empower customers to monitor machinery energy consumption, optimize production processes, and efficiently plan energy usage. Moreover, the systems are equipped to promptly notify users of any issues or irregularities. Additionally, PTT engineers diligently oversee production and energy usage through this platform round the clock, ensuring readiness for the digital era's transformations and leveraging digital technologies to propel industrial operations towards the realm of Factory 4.0.
6. Comprehensive Consultation Services: Offering end-to-end consultancy services for compressed natural gas (CNG) and liquefied natural gas (LNG) distribution systems involves providing guidance on the design and construction of these systems, along with transportation to industrial plants beyond pipeline networks. This includes calibration services for measurement instruments at natural gas service stations for vehicles, as well as industrial facilities.
7. Fire Training Center Operation: The fire training center located in Ratchaburi province offers comprehensive services to natural gas customers. These services include fire suppression drills and evacuation exercises in accordance with legal requirements. Additionally, the center conducts thorough inspections and tests on safety equipment and provides various safety training courses mandated by regulations. This strategic expansion of expertise aims to foster businesses associated with natural gas. Currently, the training services cater to personnel engaged in gas transport tank operations, gas service station attendants, and those working at gas utilization facilities. This initiative aims to facilitate customers involved in various aspects of natural gas operations.
8. International Trade Business Focus: In its international trading endeavors, PTT prioritizes the use of both physical gatherings and digital communication platforms alongside policy formulation to ensure continuous engagement and relationship-building with customers. This entails proactive monitoring and resolution of diverse customer concerns. Direct client visits have been substituted due to restrictions on international travel amid the COVID-19 pandemic. Additionally, PTT has produced video clips expressing care, empathy, and goodwill towards customers consistently over time.
   
   

Product and Service Development to Meet the Needs of International Trade Businesses

PTT remains committed to expanding its international trade operations, aiming to meet customer demands consistently and cultivate enduring customer relationships. Leveraging both online and offline communication channels, the Company diligently tracks and addresses various customer concerns on a regular basis. In the wake of the COVID-19 pandemic, PTT also organizes seminars for customers, both domestically and globally, to strengthen ties and foster mutual understanding. Furthermore, PTT continually enhances its operational processes by embracing technology and digital solutions. The Company focuses on creating platforms that emphasize real-time information sharing and robust data analytics to facilitate informed decision-making across the entire business spectrum to better touch the needs of customers. Here are some notable examples:

1. ONE Platform Development: PTT is developing the ONE Platform system to facilitate seamless data sharing with flagship companies. This platform enables efficient planning of product imports and exports, thereby enhancing trade value through optimized logistics strategies like co-loading and co-purchasing.
2. Power BI Implementation: Utilizing Power BI, PTT monitors current crude import preferences at refineries to evaluate required crude baskets. This helps in market analysis and identification of target trade groups for future negotiations, ensuring proactive decision-making.
3. Intelligence Trading Signal (ITS) Development: PTT is working on developing the Intelligence Trading Signal (ITS) system. This system aims to improve the speed and accuracy of derivative contract transactions, enabling more effective risk management. It empowers the Company to respond swiftly to customer risk management needs, particularly in highly volatile price conditions.

Customer Satisfaction Survey Results (%)

Despite facing challenges in the volatile and competitive gas market, PTT remains steadfast in upholding a high standard of customer satisfaction. The Company has implemented proactive measures to foster engagement and satisfaction among its industrial gas customers. One such initiative involves organizing after-sales service activities, including seminars and customer meetings aimed at providing insights into the gas price situation and offering technical support. PTT is committed to addressing customer concerns and complaints promptly, leveraging feedback to develop improvement plans and regularly disseminate beneficial information to its customers. Additionally, the Company has established an online training platform, GASTALKTH.COM, offering a comprehensive range of resources, from fuel types to maintenance techniques for gas pipeline systems and industrial equipment. These online classes, conducted by PTT experts, are accessible to all interested parties, ensuring widespread knowledge dissemination.

Furthermore, PTT actively engages in social initiatives in collaboration with its customers. Notably, the Company, alongside its customers, organized a Virtual 30 Days Challenge exercise activity. The initiative aimed to accumulate calories, which were then converted into scholarships for deserving students in the local community. Additionally, PTT participates in tree planting activities in customer community areas and the Kung Bang Krachao.

Key Review and Improvement Initiatives in the Past Year 

Innovation Management Master Plan for the 2024-2028 

PTT has recently updated its Innovation Management Master Plan, transitioning from the 2023-2027 edition to the 2024-2028 version. This revision encompasses several key adjustments as follows:

1. The PTT Innovation System remains unchanged but has undergone internal process enhancements and improvements to make it more efficient.
2. Adjustments have been made to the financial data collection methods for innovation projects to reflect the innovation work more clearly.

Enhancing Industrial Operations through Digital Solutions

With the aim of promoting efficient energy utilization (both thermal and electrical), enhancing maintenance processes in industrial plants, and implementing cutting-edge technology for energy conservation, PTT collaborates with expert technology partners to assist entrepreneurs in reducing production costs and boosting efficiency through digital solutions. Within the realm of service, initiatives encompass:

• Energy Efficiency Platform
• Cloud Computing
• Industrial Internet of Things
• Big data Analysis
• System Integration
• Cybersecurity
• Autonomous Robots
• Augmented Reality
• Simulation

Expanding the battery business in Thailand

PTT collaborates with Global Power Synergy Public Company Limited (GPSC), Nuovo Plus Company Limited (Nuovo Plus), and Total Environmental Solutions Company Limited (TES) to further explore technology advancements and assess the viability of establishing a battery recycling facility in Thailand. This initiative aims to bolster the integrated battery industry in the foreseeable future while exploring recycling technologies to support clean energy ventures for both PTT and its affiliated companies. Moreover, this endeavor serves to enhance the country's circular economy potential. 

Promotion of renewable energy utilization

PTT is expanding its efforts to advance the adoption of alternative energy sources. In collaboration with Mekha V Company Limited, a subsidiary wholly owned by PTT, the Company is facilitating the distribution of Renewable Energy Certificates (RECs). Under this initiative, PTT has partnered with Thai Bridgestone Company Limited to procure renewable energy certificates from Mekha V's ReAcc platform, accredited with The International REC (I-REC Standard), for a three-year period spanning from 2023 to 2025. This strategic alliance not only reinforces PTT's commitment to sustainable energy practices but also propels innovation in energy solutions, fostering a sustainable future for Thailand while catalyzing the energy transition across the ASEAN region.

Promotion of electric vehicles in line with national environmental policies

Arun Plus Company Limited, a subsidiary wholly owned by PTT, has inked a memorandum of understanding (MoU) with SC Asset Corporation Public Company Limited to collaborate on the development of electric vehicle (EV) charging station infrastructure. This strategic partnership aims to bolster the adoption of EVs and enhance the user experience by offering convenient and efficient electric vehicle services. The initiative is designed to cater to the needs of EV drivers, allowing them to recharge their vehicles with clean energy swiftly and seamlessly, eliminating the need for prolonged stops. As part of its comprehensive strategy to expand electric vehicle charging infrastructure, Arun Plus plans to roll out charging stations under the on-ion brand across various locations, including shopping centers, hotels, office complexes, restaurants, and residential areas. The target for 2023 is to deploy over 400 charging units.

Furthermore, PTT OR and Swap and Go Company Limited, a subsidiary wholly owned by PTT, have embarked on a collaborative venture titled "Swap & Go - Universal Battery Swapping Network Expansion Empowered by OR." This initiative aims to expand the network of battery swapping stations for electric motorcycles operated by Swap & Go. These stations will support universal battery swapping, compatible with all types of electric motorcycles, within the PTT Station network managed by PTT OR. The objective is to enhance convenience and efficiency for commuters, facilitating seamless mobility transitions. The plan is to establish over 100 battery swap service points across Bangkok and its surrounding areas by 2024. These service points will also provide maintenance and repair services through the PTT Station service network, promoting the widespread adoption of clean energy Innovation and offering consumers cost-saving energy options. This initiative underscores PTT's commitment to advancing the electric vehicle ecosystem while fostering sustainable growth for society and the environment alike.

Development of innovation to create recycled products from leftover materials in the manufacturing process 

PTT, IRPC, and Boonrawd Brewery Company Limited are collaborating to drive innovation and expand the utilization of waste materials generated during the production process. Their joint efforts aim to create circular products, aligning with the principles of the circular economy. As part of this initiative, a plastic recycling pilot project has been initiated. This project focuses on developing prototype products such as water crates and replacement soda bottles made from recycled PET (rPET) and recycled high-density polyethylene (rHDPE), as well as pallets crafted from rHDPE and malt residue. This collaboration marks a significant stride forward in embracing the circular economy paradigm. The initiative contributes to the national strategic plan outlined in the Bio-Circular-Green Economy (BCG) model and plays a vital role in enhancing the quality of life for individuals within society and safeguarding the environment, with a firm commitment to sustainability.

Rainwater Treatment (RE Rain) Innovation Project

PTT is at the forefront of advancing circular economy initiatives with the introduction of its innovative rainwater treatment system, RE Rain. This pioneering technology is designed to collect rainwater and enhance its quality for reuse in our cooling towers, replacing traditional tap water usage. By integrating RE Rain into the Company’s operations, PTT anticipates a significant reduction in water consumption, amounting to 1,300 cubic meters per year, equivalent to approximately 2% of its total water usage across all office buildings. Furthermore, PTT has leveraged IoT (Internet of Things) technology to streamline operations and enable real-time monitoring through a dedicated mobile application. Currently, the aforementioned system is installed in the rooftop area of the PTT headquarters building and has officially commenced operation in June 2023.