Management Approach
PTT's environmental management is a key component of its SSHE (Safety, Security, Health, and Environment) management system, underscored by the "Quality, Security, Safety, Health, and Environment Policy (QSHE Policy)". This policy has been thoroughly reviewed and approved by PTT Group Management Committee (PTTGMC), signed by both the CEO and President, as well as the PTT Board of Directors. It serves as a guiding framework for all business units, departments, operational areas, and subsidiaries within PTT to ensure consistent and unified implementation across the organization. The most recent QSHE policy was reviewed and implemented in 2025, and it includes the following key principles:
- The policy is applicable to all employees, contractors, and the entire supply chain across PTT and its subsidiaries, ensuring strict adherence to applicable laws, regulations, organizational standards, international best practices, and relevant commitments.
- It provides a structured approach to setting both long-term and annual QSHE operational objectives, which are aligned with corporate plans and key performance indicators (KPIs) to assess the performance of leadership at all levels of the organization.
- The policy focuses on managing risks to prevent incidents that could result in harm to life, property, production processes, or logistics, while also promoting health, occupational safety, and a supportive working environment for employees, contractors, and all stakeholders.
- It emphasizes a committed approach to managing, preventing, and mitigating environmental risks.
- Transparent communication of operational results and the effectiveness of the policy to stakeholders is prioritized, ensuring mutual understanding, raising awareness, and addressing stakeholder expectations and concerns.
- Ongoing clarification and training initiatives are implemented to ensure that employees and contractors fully understand the policy, while also encouraging their active participation, feedback, and continuous improvement through regular review processes.
PTT is dedicated to the continuous review and enhancement of its management practices related to quality, security, safety, occupational health, and the environment. The company conducts an annual review of its QSHE policy and operational goals. This process involves a thorough analysis and prioritization of QSHE-related issues, with active involvement from employees, including those from the Quality, Security, Safety, Occupational Health, and Environmental units at the business area level (QSHE Business Area: QSHE BA).
Implementation and Governance Structure
PTT integrates environmental management within its SSHE framework, ensuring the practical implementation of policies across the organization through the following mechanisms:
- PTT has implemented an environmental management system in accordance with the international ISO 14001 standard across all operational areas, including natural gas separation plants, natural gas pipeline systems, vehicle refueling stations, as well as PTT Headquarters and the PTT Innovation Institute. These areas undergo both internal audits and evaluations by external certification bodies. Currently, all operational areas have been fully certified.
- Key environmental performance indicators (KPIs) are established and set as annual goals, along with medium- and long-term strategic objectives. These goals are communicated to business groups, units, departments, and relevant operational areas within PTT Group. To ensure effective implementation, policies, indicators, and targets are clearly communicated, and training sessions are conducted for all employees and management to ensure complete understanding and compliance.
- Critical environmental issues are identified as corporate-level (Corporate KPIs) or functional-level (Functional KPIs) performance indicators, which impact the compensation of relevant executives and employees, as appropriate.
Key Performance Indicators, Annual Goals and Strategic Targets for 2030
PTT has established key environmental performance indicators (KPIs) and set them as annual goals, along with medium- and long-term strategic objectives. These goals are effectively communicated across business groups, units, departments, and relevant operational areas within PTT Group. To ensure thorough understanding and successful implementation, policies, indicators, and targets are conveyed through training sessions to all executives and employees
Annual Key Performance Indicators and Targets
Detailed information can be found on the website under the Sustainability section, in the subtopic "Management System for Security, Safety, Occupational Health, and Environment."
Strategic Key Performance and Targets
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Reduce water usage in high-risk areas and control water consumption to prevent an increase in areas with high water usage. PTT Group has set water usage efficiency targets for office buildings and operational areas as follows:
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Remark:
1. Excludes industrial waste from operations under the following conditions:
• When the Department of Industrial Works or other relevant authorities do not permit the disposal of industrial waste by other methods.
• When industrial waste cannot be reused due to the lack of appropriate domestic technology to support its recovery.
This is in line with the criteria for the Zero Waste to Landfill Achievement Award as defined by the Department of Industrial Works.
2. The long-term target for controlling greenhouse gas emissions by 2030 was reviewed and revised in 2021.
3. Excludes non-routine waste.
Environmental Key Issues Management
Climate change management is a top priority that is being given significant attention across all sectors. PTT has been actively monitoring and assessing the associated risks and opportunities over short, medium, and long-term horizons. The company is fully committed to addressing climate change in alignment with national policies, while also striving to fulfill its vision of driving the country toward a low-carbon society. This includes achieving carbon neutrality and the net-zero greenhouse gas emissions target set by the company.
In addition, PTT and its subsidiaries place a strong emphasis on circular economy practices and waste management, which align with Thailand’s Bio-Circular-Green Economy (BCG) Model for sustainable development. As part of this commitment, PTT has set a target to ensure that at least 50% of waste is managed in a circular manner by 2030.
For integrated water management, PTT and its subsidiaries emphasize balanced management of both demand and supply, ensuring that community and societal water rights are respected and that environmental impacts are minimized. Together, they have established targets to control and monitor freshwater withdrawal for PTT group, setting a limit of no more than 74 million cubic meters in 2023 and no more than 70 million cubic meters in 2024. Additionally, PTT has not incurred any fines or penalties related to environmental issues.
Furthermore, PTT prioritizes the management of air pollution, oil and chemical spills, and biodiversity. The company continuously monitors and measures environmental quality in strict compliance with relevant laws. If monitoring results indicate that environmental impact measures are not being met, PTT will develop an action plan for remediation and adhere to the specified measures, including reporting information to relevant authorities, in accordance with legal guidelines and timelines.
Environmental Investment
PTT has consistently collected and recorded data on expenditures, revenues, and investments related to environmental management. In 2024, the scope of this data collection was expanded to include six subsidiaries within 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). Moreover, PTT has developed a tool to assess the Environmental Return on Investment (EROI), which measures the financial effectiveness of environmental investments in clearer, more tangible terms. This approach enhances stakeholder confidence and provides a transparent reflection of the true value of the organization's environmental spending and investments, in alignment with international standards, specifically the "Environmental Management Accounting Procedures and Principles, The United Nations."
Environmental Regulation ViolationCSA 2.2.5
In 2009, a natural gas and oil spill occurred at the Montara field, operated by PTTEP Australasia (Ashmore Cartier) Pty Ltd (PTTEP AAA), a subsidiary of PTT Exploration and Production Public Company Limited (PTTEP). PTTEP AAA has expressed its commitment to taking responsibility for the costs related to controlling and mitigating the environmental impacts of the incident. Since 2009, PTTEP AAA has allocated funds to study the long-term environmental consequences of the spill. Following the 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 was informed that PTTEP AAA had entered into settlement negotiations with the Indonesian seaweed farming group, under the class action proceedings, as per Australian legal procedures. PTTEP AAA reached an agreement in principle to pay AUD 192.5 million (approximately USD 129 million) to settle the class action in its entirety, including any appeals, with the Indonesian seaweed farmers. It is important to note that this agreement in principle does not imply an admission of liability by PTTEP AAA. The details of the agreement remain confidential as it is currently under review by the Federal Court of Australia. [LINK: Market Disclosure Letter]