Positive and Negative Impacts

Impact of Issues over Time 

Objectives/Targets

In 2024, PTT is committed to achieving sustainable growth and becoming a socially responsible organization. This vision is built upon three core pillars: Environment, Society, and Corporate Governance, which will be integrated into its business operations to strengthen and stabilize Thai society for long-term sustainability. For the environmental aspect, it encompasses the planting and management of 1 million rai of forest already established by PTT, with an additional 1 million rai to be planted in support of its goal to achieve Net Zero Emissions target by 2050. Additionally, PTT aims to foster environmental awareness and promote the restoration and conservation of natural resources. PTT’s societal commitment focuses on improving the well-being of local communities and inspiring long-lasting social change.

Moreover, PTT is dedicated to creating opportunities for vulnerable groups by leveraging its expertise and innovations, alongside those of its partners, to elevate both societal and environmental quality for improved living conditions.

As for social investment (Environmental and Social Initiatives), PTT maintains a clear policy regarding social investment, allocating at least 1-3% of its annual operating profits. This investment is divided as follows: up to 30% for donations and up to 70% for social projects, including Corporate Social Responsibility (CSR) initiatives and Social Enterprises (SE).

In 2024, PTT allocated a total of 1,066.38 million baht, which accounts for 1.23% of its operating profit, towards social investments. This year, all activities were carried out according to the planned budget framework, with donations capped at 30%, and CSR combined with SE not less than 70%. The budget distribution for various initiatives is as follows:

1. Donation budget: 19.07%
2. Corporate Social Responsibility (CSR) projects: 80.07%, and all Social Enterprise (SE) operations combined: 0.86%

Driven by its commitment to conducting business while caring for society, communities, and the environment, PTT has continuously engaged in various social initiatives to reflect the Company's responsibility towards the community. These initiatives include developing skills to create employment opportunities for farmers and local communities through the Community Empowerment project, promoting knowledge and skills to enhance the quality standards of community products for sale via the Community Happiness by PTT , and inspiring interest in STEM education through partnerships with Kamnoetvidya Science Academy (KVIS) and the Vidyasirimedhi Institute of Science and Technology (VISTEC). PTT also focuses on environmental sustainability by supporting conservation networks and promoting the use of vetiver grass as part of the royal initiative under the Green Globe Institute’s efforts. Additionally, the PTT Forest and Ecosystem Institute is actively involved in planting and maintaining 1 million rai of new forests, restoring and preserving existing forests, and establishing four natural learning centers. These centers aim to educate and inspire the public and local communities in caring for and preserving natural resources.

Furthermore, when the country and Thai citizens are affected by natural disasters, the Thai Power of Volunteer Club (PTT Group) swiftly mobilizes resources to prepare and deliver essential relief supplies to those in need. The Group also deploys the PTT Group Seals, a specialized task force comprising employees with expert rescue skills from across PTT Group companies. This team is dispatched to remote, hard-to-reach areas, where they provide assistance to the sick, elderly, and children, as well as work to alleviate the suffering of affected communities in line with their assigned mission, ensuring a timely response to the situation.

Through its dual mission of securing energy stability while caring for society, communities, and the environment, PTT has consistently ranked highest in Corporate Reputation Score compared to its industry peers (according to the 2024 stakeholder survey on PTT’s business operations).

Management Approach

PTT's Social Value Creation Objectives   

As the national energy leader, PTT has established a strategy to drive social, community, and environmental initiatives in alignment with its organizational vision: “Together for Sustainable Thailand, Sustainable World.”  The Company follows a comprehensive approach that emphasizes community engagement, adhering to high standards in community relations to gain a deep understanding of the varying contexts and needs of each area. PTT’s social responsibility efforts are focused on two primary goals: 

1. Enhancing the quality of life for communities and fostering social outcomes that meet the objectives of the project, such as increasing income or reducing expenses by at least 10% compared to the baseline. 
2. Advancing towards a low-carbon society and achieving a greenhouse gas absorption of 3 MtCO2 per year by 2030. 

At the same time, PTT has encouraged and supported employees to dedicate their time to public service through volunteer programs that organize activities benefiting society. This includes the “The Power of Thai People with Kind Heart” club within the PTT Group, as well as projects focused on community development, societal well-being, and environmental protection. These efforts continuously promote a culture of social responsibility, ensuring PTT remains a positive and proactive force within society. 

Governance Structure/Mechanisms/Management Approach

Governance Structure

PTT has established clear goals and strategies aimed at creating shared value and enhancing the quality of life for communities and society. These objectives are integral to the Company's sustainable strategy, as outlined in the “Sustainability Management Master Plan to Reflect PTT’s Social and Environmental Responsibilities for 2021-2025 (2nd Edition).” Long-term goals and key performance indicators (KPIs) have been established and translated into functional KPIs for each department. A clear and detailed action plan has been developed, with progress towards these goals and KPIs being reported on a quarterly basis to both the management committee and the PTT Board of Directors, in line with the defined governance structure.

Processes/ Mechanisms for Impact Management

PTT is committed to ceasing operations in protected areas to ensure that community support activities are conducted with the highest standards. To address concerns and foster acceptance among communities directly and indirectly affected by its business operations, PTT has established a comprehensive framework for community relations. This framework is designed to mitigate concerns and enhance community engagement through six key steps:

1) Target Group Identification:
Define target groups comprehensively based on the impact assessment of potential effects from the organization's projects/activities. Consider the level of interest and influence each group has on the project's activities.

2) Community Priority Ranking:
Assess the importance of the communities affected by the organization’s projects/activities and establish the methods and levels of engagement with these communities, categorized by their significance based on the interest and influence each community has on the project/activity.

3) Community Engagement Plan Development:
Utilize community data to create an engagement plan that corresponds to the importance of each community.

4) Implementation of Community Engagement Plans:
Implement community engagement activities in ways that are appropriate and convenient for the community, focusing on addressing the key issues and concerns regarding the impacts on the community. Continuously consider the objectives of the project/activity throughout the process.

5) Community Data Analysis and Processing:
Systematically collect data on the results of community development efforts and process it into a structured database. This will serve as a foundation for tracking progress and scaling the results in accordance with the agreements and commitments made with the community.

6) Responsiveness, Monitoring, and Continuous Operation:
Systematically gather data on the outcomes of community development activities and process it into a database to monitor progress and expand results, aligning with the agreements and commitments made with the community.

Creating Social Value

PTT is committed to investing in sustainable social and environmental initiatives, continuously reviewing and refining its operational approach to align with changing circumstances. The Company's strategy is built on both internal and external factors, adapting to the current situation. Key focus areas include creating shared value, improving the quality of life for communities and society, and supporting the Sustainable Development Goals (SDGs). PTT’s efforts are also aligned with the 20-year National Strategy and the 12th National Economic and Social Development Plan. The Company actively addresses issues such as natural resource degradation, economic and social inequalities, energy access, and the needs identified through community surveys.

Corrective/Preventive Measures for PTT’s Social Operations  

PTT implements its corporate social responsibility initiatives through a framework that emphasizes two key dimensions: the first being the enhancement of the quality of life for society and communities, alongside the development of human resources and societal growth (Social), and the second being the transition to a low-carbon society, with a focus on promoting the conservation and restoration of natural resources and the environment (Environmental). The core areas of operation include:

Social, Community and Human Resource Development

Promotion of Conservation and Restoration of Natural Resources and the Environment

Partnerships and collaborations with other entities 

Social Enterprise and Institute

Green Globe Institue

Reforestation

Social Enterprise

Social Initiatives Framework

Example of Key Projects or Activities 

• PTT Group has built on the success of its Innovation for Smiles project to further develop the Community Strengthening initiative, enhancing agricultural skills through the integration of innovation and technology in a joint venture model. This approach allows communities to actively participate and take ownership, promoting economic value and contributing to the broader community supply chain. The initiative follows the BCG (Bio-Circular-Green) Economy Model, aimed at modernizing agriculture by applying suitable technologies tailored to the specific needs of each community. These technologies include solar-powered water pumps, smart irrigation systems, greenhouses, charcoal kilns, agricultural drones, nano zinc oxide fertilizers, and bioboosters. In 2024, 143 households across seven key areas were developed into resilient communities that can pass on their knowledge to other networked communities, including: 
  • Mae Tha Subdistrict, Mae On District, Chiang Mai Province 
  • Ban Nam Phu Subdistrict, Khirimat District, Sukhothai Province 
  • Phiman Subdistrict, Na Kae District, Nakhon Phanom Province
  • Kham Khan Subdistrict, Manjakiri District, Khon Kaen Province 
  • Tha Manao Subdistrict, Chai Badan District, Lopburi Province 
  • Dong Ki Lek Subdistrict, Mueang District, Prachinburi Province 
  • Dong Ki Lek Subdistrict, Mueang District, Prachinburi Province 

for local technicians, focusing on the design, installation, and maintenance of various technologies. This includes site visits and workshops in model areas. A total of 33 participants have undergone training. Moreover, PTT has initiated research into developing models or innovations for water management, alongside planning the development of community areas within the PTT network to serve as pilot learning hubs. These hubs are aimed at promoting effective water management strategies tailored to each area, addressing water shortages for both consumption and agriculture caused by droughts in a practical manner. 

• Benefits for Stakeholders: Communities and target groups gain enhanced capacity, with a focus on the integration of innovation and technology to improve economic, educational, and environmental outcomes, ultimately raising their quality of life. 
• Benefits for PTT: This initiative reinforces PTT's positive image, reflecting its commitment to contributing meaningfully to society in all dimensions, beyond its role as Thailand's national energy company that ensures energy security for the people of Thailand.