|Sustainable Development Goals|
The Actual Impact and Potential Impact from the Operations
PTT operates its business in compliance with sustainable development guidelines, which identify and assess material issues covering the Environmental, Social, and Governance (ESG) dimensions that may affect the organizational operations and the stakeholders. The analysis is conducted based on both positive and negative impacts on all stakeholders, including the impacts throughout the value chain of all operational lines and PTT business groups (e.g., impacts from oil spills and chemical contamination and impacts on communities' water consumption), stakeholder survey, standards, requirements, guidelines, and global risks and trends. These key issues have been incorporated in the strategic planning process, and corporate risk management as PTT is fully cognizant that its businesses and the upstream to downstream business operations may cause positive or negative environmental impacts. At the same time, it affects the well-being and livelihood of communities.
Objectives / Goals
Thailand intends to achieve carbon neutrality by 2050 and net zero greenhouse gas emissions within or before 2065. An agenda regarding Bioeconomy Development, Circular Economy, and Green Economy (Bio-Circular-Green Economy: BCG Model) are also announced nationwide. As PTT is aware of the national agenda and anticipates possible consequences, PTT is prepared to face the upcoming challenge and strives to constantly take action in line with the national goals, which will increase investment in more environmental projects in the future.
PTT Environmental Management Policies
PTT's environmental management is part of SSHE management. Under the framework, a "Quality, Security, Safety, Health, and Environment (QSHE) Policy" has been developed and considered by the PTT Group Management Committee (PTTGMC), as well as reviewed and approved by the Chief Executive Officer and Managing Director and another PTT Board of Directors. The organization's commitment is made clear through this policy, which also serves as a management framework for the PTT group, business units, operational lines and sites, and the PTT Group's subsidiaries to comply collectively and fully. Its highlights are as follows:
- Compliance with laws, corporate regulations, the international standard, and relevant commitments.
- Risk Management, protection, prevention, and deliberate environmental impact reduction with constant review and improvement of its performance.
- Internal and external communication on our performance and the transparency of the performance’s effectiveness for the stakeholders to mutually understand and recognize.
- All management levels as a role model for their roles and responsibilities with good governance, followed by a clear understanding of all staff.
Governance Structure/ Mechanisms/ Environmental Management Process
Governance Structure and Environmental Management
To put the policies into concrete implementation throughout the organization, PTT has defined vital environmental indicators as strategic goals for medium-term, long-term, and annual goals and transmitted them to the PTT group, business units, operational lines, and relevant operational areas. The policies, indicators, and goals are clarified through constant communications and organized training for all executives and employees to understand and comply fully. A follow-up on progress and performance is also reported to the operational line executives and the Board of Directors according to the governance structure determined quarterly.
More importantly, the management issue in response to climate change is an urgent agenda that all sectors prioritize. Risks and opportunities have been monitored and assessed in the short, medium, and long terms. PTT is committed to entirely elevating climate change solutions in line with national policies and the vision of PTT, which strives to be the power driving the country towards a low-carbon society by achieving carbon neutrality goals and net zero greenhouse gas emissions targets.
For integrated water management, PTT and PTT Group's subsidiaries remain invested in managing supply and demand in a balanced manner and avoiding impacts on the water consumption of the communities and the environment. A study has been conducted, and a target was set to control and monitor the Freshwater Withdrawal of the PTT Group. The target is to limit the total volume of freshwater withdrawal to 74 million cubic meters or below. In 2022 and 2021, the discharge of PTT's wastewater followed the expected standard and rules, and PTT has not charged any fines or penalties for non-compliance with environmental laws and regulations.
PTT and PTT group's subsidiaries emphasize Circular Economy and Waste Management, which comply with Thailand's aim to drive the nation towards sustainable development by following Bio-Circular-Green Economy or BCG Model. We have studied and established a target for % of Wastes that are managed circularly, and the proportion must be at least 50% by 2030.
PTT also remains invested in Air Quality Control, Spill Management, and Biodiversity.
In addition, PTT has constantly monitored and measured environmental quality in strict accordance with related laws. If the measurement results are inconsistent with the standard requirements, PTT will develop an action plan to improve the performance and ensure that it aligns with the established measures. Furthermore, we will report the data to related agencies in compliance with the guidelines and timeframe by law.
Indicator, Performance, and Key Awards
Indicator and Strategic Targets
0% increase in air pollution emissions per year
||Zero hazardous industrial waste disposed of landfills1|
||Zero non-hazardous industrial waste disposed of landfills1 in 2023|
By 2030, reduce the PTT group2’s greenhouse gas emissions by 15% from the 2020 baseline.
Reduce water consumption in high-risk areas and limit water consumption at current levels or below in areas with high water consumption. PTT Group has determined the following water efficiency targets for our offices and operational areas:
Establish a target of waste managed circularly (% of Wastes managed circularly) at least 50% in 20303
1. The scope of data does not include industrial waste under the following conditions:
• Industrial waste that the Department of Industrial Works, or other government agencies, did not authorize to be disposed of through other means.
• Industrial waste could not be recovered due to the lack of technology in the country.
Nonetheless, this calculation aligns with all the Department of Industrial Works criteria for the Zero Waste to Landfill Achievement Award.
2. The long-term greenhouse gas emissions target for 2023 was reviewed and updated in 2021.
3. Non-routine waste is excluded.
PTT has collected and recorded expenses, revenues, and investments in environmental management on an ongoing basis. In 2022, PTT expanded the scope of data collection to include five of PTT Group's subsidiaries, including PTT Exploration and Production Public Company Limited (PTTEP), PTT Global Chemical Public Company Limited (GC), Thai Oil Public Company Limited (TOP), IRPC Public Company Limited (IRPC), Global Power Synergy Public Company Limited (GPSC), and PTT Oil and Retail Public Company Limited (OR). Meanwhile, the report for Global Power Synergy Public Company Limited (GPSC) will be commenced in 2022. Additionally, PTT developed a tool to calculate the Environmental Return on Investment (EROI) to measure the effectiveness of our environmental investments in the form of money more concretely. This tool will help ensure stakeholder confidence and reflect the actual value of the environmental expenses and investment. All of which comply with the United Nations Environmental Management Accounting Procedures and Principles.
PTT Environmental Investments
• Environmental investments are defined as investments to acquire environmental assets for PTT.
• Since 2016, PTT has developed our approach to classifying expenses as environmental expenses for more comprehensiveness and alignment with the UN Environmental Management Accounting Procedures and Principles. The process for estimating the environmental return on investment by referring to projects under the productivity enhancement system of PTT was also updated.
• Although the assets of PTT and OR have been separated since July 2018, environmental assets have increased in value compared to 2017. In 2018, PTT consolidated investment data and improved data completeness for an initiative to install selective catalytic reduction (SCR) technology on the waste heat recovery unit (WHRU) at the Gas Separation Plant Unit 5 in Rayong Province. This system serves to help reduce Nox emissions.
•In 2019, PTT developed the "e-Expense" system to consolidate data on the environmental expenses of the organization and improve data completeness. PTT is also investing in a project to install a hydrogen sulfide removal unit, including a regenerative thermal oxidizer (RTO) and SO2 scrubber, at the Gas Separation Plant Unit 5 in Rayong Province. This system will help remove hydrogen sulfide from contaminated acidic gas.
• In 2020, due to the COVID-19 pandemic and travel restrictions, some of PTT's investment projects were delayed as experts and consultants from abroad could not travel to Thailand.
• In 2021, Environmental Investment increased because of the wastewater collection system project at Wangchan Valley, Rayong Province.
Violation of Environmental RequirementsCSA 2.2.5
Following the 2009 Montara Natural Gas and Oil Spill Incident — which was at that time operated by PTTEP Australasia (Ashmore Cartier) Pty Ltd (PTTEP AAA), or a subsidiary of PTT Exploration and Production Public Company Limited (PTTEP) — PTTEP AAA has expressed its willingness to compensate for the costs of controlling and mitigating the impacts arising from the event and has allocated funds to study the long-term environmental impact since 2009. According to the case, a group of seaweed farmers in Indonesia filed a lawsuit against PTTEP AAA at the Federal Court of Australia in 2022. PTTEP was notified that PTTEP AAA had negotiated with the seaweed farmers' group in Indonesia about the Montara incident in compliance with the Federal Court of Australia's order, which is common practice under Australian law. As a result of the negotiation, PTTEP AAA has reached a principle agreement in condition by which PTTEP AAA will pay AUD 192.5 million (or the equivalent of approximately US$129 million) to settle all class action proceedings. However, PTTEP AAA's settlement of the class action does not constitute a liability for PTTEP AAA, and the information of the case remains confidential at present due to pending consideration of the Federal Court of Australia [Click for more details: SET Notice].
2022 Key Review and Update
PTT has reviewed strategic directions, policies, sustainability management, environmental management framework, and short-term and long-term goals. An Indicator regarding waste management based on the long-term circular economy has also been added, including establishing a target for % of Waste that is managed circularly, in which the proportion of the waste management must not be less than 50% by 2030.
- Sustainable Governance