PTT conducts its business in line with sustainable development principles, which involve identifying and assessing key environmental, social, and governance (ESG) issues that may affect the organization's operations and stakeholders. This analysis considers both positive and negative impacts on all stakeholders throughout the value chain and business units within the organization. Examples include the impacts of oil and chemical spills, which may affect community water rights. Stakeholder surveys, standards, requirements, best practices, global trends and risks are integrated into the strategic planning process and organizational risk assessments. PTT recognizes that its operations, from upstream to downstream activities, can have both positive and negative impacts on the environment, as well as on the well-being and quality of life of communities.

Objectives/Goals

Thailand has demonstrated its determination to reach carbon neutrality by 2050 and achieve net zero emissions by or before 2065. Moreover, the nation has declared the development of the Bio-Circular-Green Economy (BCG Model) as a cornerstone of its national agenda. In addition, it places increased importance on human rights issues. PTT is cognizant of these priorities and foresees potential impacts, thus gearing up to address challenges and relentlessly pursue actions in alignment with the country's objectives. Such endeavors will inevitably spur greater investment in environmental initiatives in the foreseeable future.

Management Approach 

The environmental management framework within PTT forms an integral component of its broader SSHE management strategy. Central to this framework is the establishment of the "Quality, Security, Safety, Health, and Environment Policy (QSHE Policy)" , which undergoes thorough deliberation by the PTT Group Management Committee (PTTGMC) and receives endorsement from the Chief Executive Officer and President and the PTT Board of Directors. This not only underscores the organization's steadfast commitment but also serves as a guiding framework for ensuring uniform management practices across diverse business units, departments, operational sectors, and affiliated companies within the PTT Group. Emphasizing a comprehensive and cohesive approach, the framework aims at the following:

• Adherence to legal requirements, organizational standards, global benchmarks, and pertinent agreements.
• Rigorous risk management to safeguard, prevent, and mitigate environmental impacts, with ongoing evaluation and enhancement of environmental practices.
• Transparent communication of operational outcomes and effectiveness to both internal and external stakeholders, fostering clarity and awareness.
• Clear delineation of duties and accountabilities for all levels of management as exemplary models, with oversight and ensuring that every employee is informed, comprehends, and executes them diligently.

Structure of Environmental Management and Governance

To ensure seamless alignment of policies with operational practices throughout the organization, PTT has devised pivotal environmental performance indicators serving as strategic milestones for the mid to long term, along with annual targets. These indicators are disseminated across business segments, units, functional areas, and relevant operational locales. Robust communication and training initiatives are in place to elucidate policies, performance metrics, and objectives, ensuring all managers and staff members grasp them comprehensively for thorough implementation. Progress and outcomes against these targets are systematically tracked and reported to the operational line executives and the Board of Directors according to the governance structure determined quarterly.

Of particular significance is the proactive management approach towards addressing climate change, an urgent concern across all sectors. Risks and opportunities associated with climate change are continuously assessed across short, medium, and long-term horizons, with a steadfast commitment to amplifying climate change mitigation efforts in alignment with national policies and PTT's vision to steer the nation towards a low-carbon society. This encompasses the attainment of carbon neutrality and net zero emissions objectives, in consonance with national directives.

For integrated water management, both PTT and its subsidiaries emphasize a balanced approach that addresses both supply and demand aspects. They prioritize ensuring no adverse impacts on community and societal water usage rights while minimizing environmental repercussions. Together, they conduct thorough assessments and establish targets for controlling freshwater withdrawal within the PTT Group, setting a maximum total volume of 74 million cubic meters for 2023 and 70 million cubic meters for 2024. Furthermore, PTT remains free from any environmental fines or penalties.

Moreover, PTT and its subsidiaries place significant importance on  Circular Economy and Waste Management,  aligning with Thailand's national development strategies, particularly the Bio-Circular-Green Economy (BCG Model). They collaborate to study and define targets for circular waste management, aiming for a minimum of 50% of waste to be managed circularly by 2030.

Additionally, emphasis is placed on the management of air pollution, prevention of oil and chemical spills, and the preservation of biodiversity.

Furthermore, PTT diligently conducts continuous monitoring and assessment of environmental quality in strict adherence to applicable laws. Should environmentally monitoring reveal deviations from prescribed standards, PTT proactively devises action plans for rectification and compliance, while also promptly reporting data to relevant authorities in accordance with legal requirements and timelines.

Indicators, Performance, and Key Achievements 

Indicators and Strategic Targets

Environmental Investments 

PTT has implemented a robust system for collecting and documenting expenses, revenues, and ongoing environmental management investments. In 2023, this system was expanded to encompass six companies within the PTT Group: 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), PTT Oil and Retail Business Public Company Limited (OR), and Global Power Synergy Public Company Limited (GPSC). Furthermore, tools for assessing Environmental Return on Investment (EROI) have been developed to measure the impact of environmental investments in a more transparent monetary format, instilling confidence among stakeholders. This initiative also aligns with international standards such as the "Environmental Management Accounting Procedures and Principles" set forth by the United Nations

Violation of Environmental Regulations^{CSA 2.2.5}

Following the natural gas and oil leakage incident from the Montara source in 2009, which was operated by PTTEP Australasia (Ashmore Cartier) Pty Ltd (PTTEP AAA), a subsidiary of PTT Exploration and Production Public Company Limited (PTTEP), PTTEP AAA has demonstrated its commitment to assuming responsibility for managing and mitigating the impacts of the incident. Funds have been allocated for studying the long-term environmental impacts since 2009. Subsequently, as a consequence of the aforementioned incident, a group of seaweed farmers in Indonesia filed a class action lawsuit against PTTEP AAA in the Federal Court of Australia in 2022. PTTEP AAA was notified that negotiations were underway as part of the class action lawsuit stemming from the Montara incident with the group of seaweed farmers in Indonesia, under the order of the Federal Court of Australia. This is a standard legal procedure under Australian law, and an agreement in principle has been reached whereby PTTEP AAA will pay AUD 192.5 million (or approximately USD 129 million) to settle all aspects of the class action lawsuit (including injunctions) with the group of seaweed farmers in Indonesia. However, it should be noted that the settlement agreement does not imply any admission of liability by PTTEP AAA, and details cannot be disclosed at this time as the settlement agreement is pending court approval by the Federal Court of Australia. [Click for more details: SET Notice ]

Key reviews and significant updates in the past year

PTT is currently undergoing a comprehensive review of its strategic direction, policies, and overarching management master plans concerning sustainability and environmental stewardship, encompassing both short-term and long-term objectives, as outlined below:

• Enhancing waste management metrics aligned with principles of the circular economy in the long run, including setting targets for waste managed circularly (% of waste managed circularly) within the PTT Group, aiming for no less than 50% by 2030.
• Establishing targets for controlling and monitoring freshwater withdrawal across the PTT Group, with a collective volume not exceeding 70 million cubic meters by 2023.
• Conducting a thorough reassessment of air emission targets for the PTT Group, with objectives to reduce VOCs, NOx, and SOx emissions by over 7% compared to the original targets by 2030.