Sustainability

Circular Economy and Waste Management

Sustainability

Circular Economy and Waste Management

Sustainable Development Goals
     


 


Opportunities and ChallengesGRI 306-1(2020)

Thailand has established the “BCG economic model” or Bio-Circular-Green Economy Model as a “national agenda” to direct Thailand towards the goal of becoming a high-income country while fulfilling Sustainable Development Goals (SDGs) in 2021. This model emphasizes the consumption of resources for maximum benefit, cost-effectiveness, waste amount reduction to less than or equal to zero, raw materials utilization from natural sources in addition to environmental friendliness for target industry groups. The mentioned industry groups, which comprise of 4 main sectors, encompass the energy industry, materials and biochemical industries, and industries related to the business operations of PTT and the PTT Group. Therefore, the implementation of this model as a facet of business strategy adjustments aims to promote development and increase distribution proportion of biobased products extracted from raw materials of natural origin and environmentally friendly products. Through integrating circular economy principles into business operations, further reduction of resource utilization and waste amount reduction is systematically enabled. 

Factors including urban expansion, population increase, and changes in consumer behavior also changing lifestyles and working from home due to COVID-19 have resulted in solid waste surges in 2020 to 25.37 million tons. 24% of this waste is improperly disposed of and consequentially causes degradation of living things and natural resources, with instances of wildlife and marine animal death from ingesting the solid waste, soil and groundwater contamination from waste water, as well as issues about unpleasant odours and destruction of scenery from improper waste disposal. In addition to solid waste, industrial waste has increased due to the industrial sector growth and thus may cause toxic residues and contamination in the environment, if not disposed of properly.  With the initiation of the governmental 20-year master plan to formulate preventions and solutions for pollution arising from waste and hazardous waste (2018-2037), industrial waste and solid waste must be properly disposed of by 2020 and 2026, respectively. Among the measures instituted within this master plan is the focus on prevention and reduction of pollution from waste and thus, operators are expected to utilize resources cost-effectively and produce minimal pollution.

PTT is fully aware that waste management is not the role and responsibility of any particular authority, but the duty of everybody in the country. Therefore, PTT emphasizes on developing its operation procedure to reduce waste from upstream to downstream operations; this includes the application of the upcycling process to make the most of resources,  under circular economy principles. 


Management ApproachGRI 306-2 (2020)

PTT manages waste following the SSHE Management System approach, determines policies, and long-term and annual goals in addition to monitoring and measuring in line with corporate laws, standards, guidelines, policies, goals and business processes. There is a quarter review on its efficiency and effectiveness according to the SSHE governance structure. This approach enables the review of efficiency and effectiveness according to the specified regulatory structure while preparing reports to government agencies and disclosing information to stakeholders in a transparent and continuous manner. 

From PTT’s target to reduce the volume of hazardous industrial waste landfilled to zero, PTT Group has been working to enable the decreasing trend since 2015, aspiring to operate per circular economy principle. PTT’s primary waste management includes recycling and extending of product’s lifespan through constant research and studies on innovation of management approaches as well as the adoption of new technology per international standards. The current goal for zero waste disposal by landfill has been extended to non-hazardous industrial waste by 2022. The PTT Group treats waste management in every activity of the value chain as of great importance; this includes management of waste generated from upstream petroleum & gas operations, from the downstream petrochemical operation, waste at on-site operations and waste from consumption of PTT Group’s product

Remark:

Excluding industrial waste from the following cases;
1. Department of Industrial Works (DIW) or the state agency incharge does not allow waste disposal by other methods.
2. Industrial waste that is unable to be recycled due to a lack of supporting technology in the country
Somehow, the management is to comply with the criteria for DIW’s Zero Waste to Landfill Achievement Award.

PTT has analyzed flagship companies’ industrial waste management data and developed a database on waste management approaches assess changing approaches in waste treatment. The company has also organized seminars for knowledge-sharing within PTT Group, such as the extraction of valuable metal with catalysts to produce a ceramic color powder. The approach yields value according to circular economy principles. Knowledge sharing serves as an approach for PTT Group to deploy and apply as appropriate with respective own companies. In this regard, PTT has managed generated waste disposals for relevant waste according to the standards and laws set forth.

Waste generated from upstream petroleum & gas operations

PTT operates the petroleum exploration and production business and supplies this raw material to other businesses under PTT Group. Waste generated during the process of petroleum exploration and production and drilling cutting waste is  properly disposed per legal requirements and international standards. In addition, the company has been carrying out a study on upcycling drilling cutting waste for alternative construction materials , in accordance with circular economy principles. The mentioned process is currently undergoing research development.

Non-hazardous waste 

PTT emphasizes the waste separation process in office settings and therefore has prepared waste separation bins, including organic bins, general bins, recycling bins, etc. Furthermore, PTT disseminates knowledge with an emphasis on raising awareness and comprehension among employees regarding waste reduction, including waste sorting, through a variety of channels both via the website and the publication The aforementioned campaign activities have been organized in all operating areas throughout the country. In 2020, PTT Group treats facial mask separation and disposal as of great importance in order to prevent COVID-19 from spreading among staff. Furthermore, PTT Group has joined the ‘Vibhavadi Zero Waste’ campaign, organized by the Office of The Securities and Exchange Commission in collaboration with Thailand Responsible Business Network (TRBN). The campaign aims at private companies situated along Vibhavadi road to join hands in developing effective waste management, increasing recycling rates and reducing waste disposal.

Waste generated from PTT Group’s product consumption

PTT Group’s core products include petroleum, natural gas and petrochemicals such as plastic. The Group is determined to take as much plastic waste for recycling so that PTT and PTTOR have signed in an MOU for developing the recycling process of plastic waste from Café Amazon for reuse in its pilot project. The program requires research and studies to develop a prototype container for café Amazon’s plastic litters by applying QR code technology that enable the separation of plastic cups to facilitate waste collection for the Tumbler Upcycling process. In 2021, these waste containers installed at offices in Energy Complex Building enabled the collection of over 3,250 PET plastic cups. This amount can upcycle up to 601 Tumblers whereas 51.1 kilograms of plastic waste can be reduced which is equivalent to a reduction of 52.7 kilograms carbon dioxide equivalent (CO2eq) of greenhouse gas emission.

Key PerformancesGRI 306-3 (2020), GRI 306-4 (2020), GRI306-5 (2020)

PTT Key Performances

Total Waste Disposed (Metric Tonnes)


Waste from PTT's Routine Operations

Total Hazardous Waste Disposal (Metric Tonnes)
Total Non-Hazardous Waste Disposal (Metric Tonnes)


Waste from PTT's Non-Routine Operations

Total Hazardous Waste Disposal (Metric Tonnes)
Total Non-Hazardous Waste Disposal (Metric Tonnes)



PTT Group Key Performances

The amount of hazardous waste disposed of at landfills and the percentage of hazardous waste from routine operations disposed of at landfill against total hazardous waste from routine operations disposed of by PTT Group.

TopicUnit2018201920202021
The volume of hazardous waste landfill disposal from PTT Group Tonnes 119.04 211.75 0 0
The total volume of hazardous waste from PTT Group Tonnes 58,632.53 80,933.10 94,775.12 36,310.67
The target of hazardous waste landfill disposal to the total volume
of hazardous waste disposed of PTT Group’s routine operation
Percentage 2 1.15 0 0
Percentage of hazardous waste landfill disposal to the total volume
of hazardous waste disposed  of PTT Group’s routine operation
Percentage 0.22 0.26 0 0

Remark: The data of hazardous waste disposal covers 7 companies under PTT Group, namely PTT, PTTEP, IRPC, GC, TOP, GPSC and OR.

Waste from PTT Group's Routine Operations

Total Hazardous Waste Disposal (Metric Tonnes)
Hazardous Waste Disposal by Reuse/Recycle (Metric Tonnes)


Total Hazardous Waste Safely Landfilled (Metric Tonnes)
Hazardous Waste Disposed of by Incineration (Metric Tonnes)
Hazardous Waste Disposal by Other Methods (Reinjection into production wells and other disposal methods) (Metric Tonnes)
Hazardous Waste Disposal by Unknown Waste Disposal Method
(Metric Tonnes)
Hazardous waste incinerated with energy recovery 
(Metric Tonnes)
Hazardous waste incinerated without energy recovery 
(Metric Tonnes)
Total Non-Hazardous Waste Disposal
(Metric Tonnes)
Non-Hazardous Waste Disposal by Reuse/Recycled/Sold
(Metric Tonnes)
Total Non-Hazardous Waste Disposal to Landfill
(Metric Tonnes)
Non-Hazardous Waste Disposal of by Incineration
(Metric Tonnes)
Non-Hazardous Waste Disposal by Other Methods (Not Reused/Recycled/Sold) (Metric Tonnes)
Non-Hazardous Waste Disposal by Unknown Waste Disposal Method
(Metric Tonnes)
Waste incinerated with energy recovery
(Metric Tonnes)
Waste incinerated without energy recovery
 (Metric Tonnes)
Waste otherwise disposed
(Metric Tonnes)

Remark:

The data of hazardous waste disposal covers 7 companies under PTT Group, namely PTT, PTTEP, IRPC, GC, TOP, GPSC and OR.

Key Activities and Projects

Turning potential project to Business ModelSDGs 12.2, 12.4, 12.5

As an arising measure from the goal of applying circular economy principles in PTT Group's business operations  to achieve Maturity Level according to the British Standards Institution: Framework for implementing the principles of the circular economy in organizations – Guide (BS 8001 : 2017) Level 3, PTT Group has studied and analyzed guidelines and operational opportunities for mutual enhancement throughout the value chain. An approach will be selected for study and l co-implementation under the "Turning potential project to business model" on an annual basis. PTT in conjunction with PTT Oil and Retail Business Public Company Limited has  researched and developed an innovative prototype for Lube Container Upcycling transformation into traffic cones in 2021. This upcycling of approximately 150 cans of used lubricant, equivalent to 50 kilograms of recycled plastic pellets, produced 70 traffic cones which serve as replacement traffic cones at the fuel station at PTT Headquarters Building.


Future Plan 

PTT emphasizes the improvement of waste management methods in tandem with better environmental protection in operations to continuously maintain hazardous and non-hazardous industrial waste disposal by landfill to zero to achieve proposed targets. PTT is committed to research focused on upgrading and progressing pilot projects which integrate circular economy principles to the latest commercial products or business models throughout the PTT Group's value chain. This approach reduces waste disposal quantity and optimizes resource utilization within the PTT Group on a long-term scale and ultimately creates shared values for society, community, and country in a sustainable manner.

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