Sustainability

Corporate Citizenship

Sustainability

Corporate Citizenship

Sustainable Development Goals
  





Positive and Negative Impacts

PTT, as the National Energy Company, is committed to maintaining energy security and acting responsibly within society across four dimensions of social responsibility: Economics, Environment, People, and Human Rights. This commitment extends to subsidiaries, affiliated companies, and social networks in both public and private sectors (Business Relationships). To achieve this, specialized operational structures have been established, including Corporate Reputation and Social Responsibility,   Management Assistant to the Managing Director, consisting of four units:  Corporate Reputation and Social Responsibility Planning, Corporate Social Responsibility,  Corporate Communication and Branding, and Green Globe Institute. Additionally, oversight and support are provided to subsidiaries, including Sarn Palung Social Enterprise Public Company Limited (SPSE) and the Sustainable Power Foundation, to conduct social activities in each dimension. Efforts are made to enhance the organization's reputation and image by allocating 1-3% of annual net profits for sustainable budgeting, with 30% allocated for donations within a framework and 70% for CSR projects and SE initiatives of the approved budget. The aim is to generate positive social outcomes, including improving community quality of life and promoting a low-carbon society for CSR projects and Social Return on Investment (SROI) of greater than or equal to 1.3 times the investment for social enterprises (SE) through value-added activities. Furthermore, there is a commitment to enhancing community resilience, fostering capacity development, and vocational skills, alongside supporting marketing strategies and distribution channels for community goods to better reach consumers. Regarding youth, the objective is to promote educational advancement, including bolstering teacher skills and improving educational infrastructure. Additionally, efforts are directed towards ensuring that marginalized groups receive support to uplift their living standards. There is a strong emphasis on promoting environmental conservation and rehabilitation through PTT's community environmental network. All these initiatives are carefully designed to anticipate and mitigate potential negative impacts on communities. It is essential that communities can sustainably continue these projects independently post-PTT involvement, without adversely affecting PTT's reputation in the long term. Clear criteria are established for community participation in activities or networks to prevent any unintended consequences, especially in cases where operations do not cover all of PTT's business areas, the possibility of comparisons being drawn, and impacts being felt on the relationship between the community and PTT. Hence, all processes involving community engagement must align with the needs, expectations, and concerns of all stakeholders through participatory approaches. This fosters better relationships and understanding among communities, PTT's business sectors, disadvantaged groups, and various networks nationwide. Ultimately, it aims to create mutually beneficial value between the organization and the community, fostering sustainable collaboration for the future.

Objectives/Goals

In 2023, PTT made strides towards its sustainable journey to become a socially responsible organization by focusing on three key operational dimensions: Environmental, Social, and Governance (ESG), alongside its core business operations. The primary goal is to foster enduring strength and stability within Thai society, with a keen emphasis on human resource development, community welfare, and societal well-being, while concurrently promoting awareness of natural resource conservation and environmental restoration. This endeavor is complemented by actively involving and managing the business impacts on communities surrounding its operational facilities. Moreover, strategic guidance is provided to optimize overall group value creation by leveraging the unique capabilities and expertise of each company within the PTT Group, thereby harmonizing efforts to achieve broad-ranging social benefits. In 2023, PTT allocated a total budget of 1,018.79 million baht for social investments, equivalent to 1.08% of its net profits aligning with the established policy of dedicating at least 1-3% of net profits to social investments target for 2020-2024. The budget allocation for social investment includes contributions in the form of donations at 26.83%, corporate social responsibility projects (CSR) at 71.61%, and social enterprise (SE) operations at 1.56%, in line with the set targets for 2022-2026. The allocation ensures that donations do not exceed 30%, while CSR and SE combined make up no less than 70%. The outcomes of these social investments in 2023 encompass activities across all dimensions as outlined earlier. Despite the gradual alleviation of the COVID-19 situation, most planned activities proceeded as scheduled. Nevertheless, the PTT Group remains steadfast in its commitment to ongoing social responsibility efforts, including initiatives such as the Smile Innovation Project for economic development, the PTT Group School Model program focusing on education, where the “STEEM + 4E” project has been developed in collaboration with Kamnoetvidya Science Academy (KVIS) and Vidyasirimedhi Institute of Science and Technology (VISTEC), and environmental conservation efforts through promoting conservation networks and advocating for Vetiver Grass utilization. Additionally, PTT continues its long-standing tradition of promoting and preserving Thai art and culture through art competitions and the establishment of the PTT Art Gallery @Baan Chao Phraya, which serves as an art exhibition venue all year round, while also providing social assistance during disasters, promptly distributing relief aid in times of national crises and drought emergencies.

The aforementioned activities are part of the efforts that contribute to PTT being ranked first in the Corporate Reputation Score with a score of 87, up from 86 in 2022 (according to the survey of stakeholders' perceptions of PTT's business operations in 2023).

Plan2022 Target2022 Performance2023 Target2023 Performance
Supporting budget allocation and participation in social development. At least 1-3% of net profit from operations (target of 2020-2024). 1.66% of net profit from operations (1,086.4 million baht) 1,179.37 million baht 1,018.79 million baht
Cultivating organizational culture and volunteerism Encouraging participation in volunteer activities among newcomers, achieving 20% (compared to participant data over the past 2 years). The number of newcomers participating in the activities increased by 75% (compared to all participants over the past 2 years), totaling 249 individuals. 550 person

965 person

In-kind Giving  NA 462.8 Million Baht NA 303.31  Million Baht
Management overhead costs for social activities NA 67.8 Million Baht NA 86.7  Million Baht

Management Approach

PTT Social Value Creation Policy  

In its role as the nation's energy powerhouse, PTT steadfastly pursues a mission to propel Thai society forward in a resilient and sustainable manner. This commitment leads PTT to address pertinent issues by adhering to a two-pronged approach to social investment: enhancing community well-being (SOCIAL) and steering towards a low carbon society (ENVIRONMENT). PTT adeptly manages these initiatives at both policy and operational levels concurrently. Furthermore, PTT actively fosters community involvement through community relations practices, ensuring a nuanced understanding of diverse community contexts and needs in various locales. Moreover, it strategically aligns investment plans for societal and community development with overall business strategies, organizational budgets, and community aspirations. PTT also empowers its employees to contribute to the public good through voluntary initiatives and participation in the "Thai Power Volunteers" club, along with supporting community-centric projects focused on social, environmental, and communal advancement. These concerted efforts imbue PTT with a distinct ethos of being a socially responsible corporate entity within the broader fabric of society.

Governance Structure/ Mechanisms/ Management

Governance Structure

PTT has established clear goals and strategies aimed at fostering shared value and enhancing the well-being of communities and society. These initiatives form an integral part of the Company's sustainability strategy outlined in the " PTT Master Plan for Sustainable Management and Social Responsibility, 2021-2025." Long-term indicators and goals are established, then translated into operational performance indicators in the functional areas of responsibility (Functional KPI), as well as clear action plans. Progress reports on achieving goals and specified indicators are made to the management level committees and committees according to the governance structure set by PTT, on a quarterly basis.

Processes/ Mechanisms for Impact Management

PTT is steadfast in its commitment to cease operations in protected areas to ensure that community support initiatives adhere to established standards. Thus, PTT has formulated guidelines for community relations practices to alleviate various concerns and cultivate acceptance from communities impacted by PTT's business endeavors, both directly and indirectly. These guidelines encompass six steps, including:



1) Target Group Identification:
Thoroughly identifying target groups based on the potential impacts stemming from the organization's projects or activities, while also considering their level of interest and influence on said projects or activities.

2) Community Priority Ranking:
Assessing the importance level of communities that impact the organization's initiatives and establishing methods and degrees of community involvement categorized by priority levels derived from a comprehensive analysis of their interest levels and influence on organizational endeavors.

3) Community Engagement Plan Development:
Utilizing community data to craft engagement plans tailored to the prioritized communities' significance levels. This includes facilitating avenues for impacted communities to voice feedback on operational and project-related risks, cultural heritage conservation, environmental impacts, and societal concerns, while also devising strategies for mitigating adverse effects.

4) Implementation of Community Engagement Plans:
Executing engagement activities that cater to the specific needs and preferences of communities, focusing on addressing issues relevant to their interests and concerns in alignment with project objectives. Integrating community perspectives into decision-making processes and project execution, ensuring transparent access to information and establishing mechanisms for community grievances.

5) Community Data Analysis and Processing:
Systematically collecting and processing data from community development operations to create a robust database for monitoring progress and scaling outcomes based on agreements reached with communities. Providing regular progress reports to impacted communities and stakeholders.

6) Responsiveness, Monitoring, and Continuous Operation:
Fostering collaboration and coordination among internal and external stakeholders to ensure effective community engagement processes. Continuously evaluating the results of community development activities and incorporating findings to enhance future approaches and sustain ongoing community development efforts.

Social Value Creation

PTT is steadfast in its commitment to investing in sustainable social and environmental endeavors. It continually reassesses and refines its operational strategies to align with internal and external factors prevailing at the time. These strategies encompass initiatives aimed at fostering shared value and enhancing community and societal well-being, while also supporting Sustainable Development Goals (SDGs) and endorsing the nation's 20-Year National Strategy for Economic and Social Development, 12th Edition. PTT addresses issues such as natural resource degradation, economic and social disparities, energy accessibility challenges, and conducts thorough community needs assessments. Moreover, PTT places significant emphasis on the principles of the sufficiency economy philosophy and the importance of stakeholder engagement as pivotal in its operations. It prioritizes community support based on identified needs, recognizing the potential within these communities. PTT is dedicated to conducting business for the betterment of society, empowering the people of Thailand to actively contribute to the nation's sustainable development journey.

Corrective/Preventive Measures 
PTT CSR

PTT is engaged in social enterprise initiatives within a structured operational framework, focusing on two dimensions: the social dimension, which strives to elevate the quality of life in local communities and foster human and community development, and the environment dimension, which endeavors to propel towards a low-carbon society while promoting the conservation and rejuvenation of natural resources and the environment. The pivotal operational details are outlined as follows:


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

CSR Approaches

CSR Approaches:
Development of Human, Community, and Social Resources (SOCIAL): Through Education Promotion


Input Output Impact
How Social and Environmental Social and Environmental
Support Formats

  • Budget
  • Time allocated for employee engagement
  • Donations in the form of goods and services
  • Management cost for social activities
Issues to Address:
  • Supporting the development of educational capabilities in science and technology to establish a foundation for driving the country forward in the future.
  • Supporting teacher development in enhancing science and technology education.
  • Number of graduates from Kamnoetvidya Science Academy (KVIS) (Grade 12): a total of 422 individuals, and from Vidyasirimedhi Institute of Science and Technology (VISTEC): a total of 123 individuals in 2023.
  • Number of research outputs from Vidyasirimedhi Institute of Science and Technology (VISTEC): 1,458 outputs in 2023.
  • Number of schools benefiting from educational promotion and development through the PTT Group Model School project: 109 schools in 2023.
  • Number of athletes benefiting: over 20,000 individuals in 2023.
Social Value/Benefits
  • Increase the workforce in science and technology for the benefit of the country.
  • Expand research and innovation efforts to drive national development.
  • Promote and cultivate sports skills among youth.
    Value/Benefit to the Environment:
Environmental
  • Enhance research that promotes environmentally friendly development.
Project/ Activity  Business Business
  • Supporting budget allocation for long-term development of science and technology education through Kamnoetvidya Science Academy (KVIS) and Vidyasirimedhi Institute of Science and Technology (VISTEC).
  • Development of educational prototypes through the PTT Group Model School STEEM+4E project.
  • Supporting budget allocation for sports development.
  • Number of news articles or media reports covering educational promotion activities to enhance the organization's image: 433 publications in 2023.
Employee Benefits/Value:
  • Creation of networks for research and innovation development.
Business Benefits/Value:
  • Linking research and innovation development with the PTT Group's business entities to enhance production processes and foster the development of new business ventures.
  • Establishment of school networks within the vicinity of business establishments.
CSR Approaches
Development of Human, Community, and Social Resources (SOCIAL): Fostering economic growth, skill empowerment for sustainable livelihoods, and providing assistance to mitigate the impacts of crises.
Input Output Impact
How Social and Environmental Social and Environmental
Support Forms
  • Budget
  • Time spent by employees on activities
  • Donations in the form of goods and services
  • Management overhead costs for social activities
Focused Issues
  • Reduce energy expenses for communities and organizations by promoting the use of renewable energy sources.
  • Increase income through community capacity building, focusing on utilizing local resources, integrating knowledge and innovation, and extending distribution channels.
  • Develop capabilities to enhance employment opportunities for individuals with disabilities, the elderly, and the underprivileged.
  • Support to aid social well-being and economic stability during crises.
  • Employment opportunities provided by the Restart Thailand project: 23,358 positions in 2023 (with continuous employment from 2022).
  • Agricultural groups and community enterprises benefiting from the Innovation Smile project under PTT: 45 areas across 29 provinces in 2023. In these areas, communities saw a net income increase of over 10% and more than 5,000 baht per household per month. The project aimed to develop and enhance products, facilitate market access for communities, resulting in over 1,416 products from 443 communities. Additionally, it focused on fostering community-based tourism in 6 regions nationwide.
  • Individuals assisted through natural disaster relief efforts with essential consumer goods support: 23,000 individuals in 2023.
  • Disadvantaged individuals and farmers benefiting from improved quality of life and economic opportunity development: over 443 communities in 2023. 
Social Value / Benefits 
  • Reducing household energy expenses.
  • Increasing community income.
  • Creating job opportunities for individuals with disabilities, the elderly, and the underprivileged.
Environmental Value / Benefits 
  • Decreasing greenhouse gas emissions.
  • Addressing community pollution issues such as wastewater, food waste, etc.
  • Enhancing efficiency in agricultural water management.
Project/ Activity  Business Aspect Business
  • Restart Thailand Project
  • PTT Innovation Smile Initiative
  • Community Smile Project
  • Assistance for natural disaster victims
  • Improving the quality of life for the underprivileged
  • The number of news articles or media reports covering activities promoting economic development, skill-building for employment, and providing relief from crisis situations to the public, aimed at creating a positive image for the organization, amounted to 3,372 publications in 2023.
Employees Benefits
  • Utilizing knowledge and expertise to contribute to societal assistance.
Value / Benefits to Business
  • Establishing community networks around business premises and nationwide.
  • Enhancing the image of promoting clean energy usage.
CSR Approaches:
Promotion of Conservation and Restoration of Natural Resources and Environment (Planet)
Input Output Impact
How Social and Environmental Social and Environmental
Type of Support
  • Funding
  • Employee participation time in activities
  • Donations in the form of goods and services
  • Management overhead costs for social activities
Focused Issues
  • Increase forest and green areas to serve as carbon sinks and preserve ecosystems.
  • Link the benefits of forests or green areas with communities and society.
  • Raise awareness and promote community participation in environmental conservation.
  • Total green area accumulated 1,167,613 rai since the commencement of the 1 million rai Reforestation Project in 1994 until 2023.
  • The value of benefits derived from forests amounted to 280,654,442 million baht on average per year, as referenced from the research findings of the 1 million rai Reforestation Project, Phase 4, conducted during 2017-2018 (research conducted every 3 years).
  • The amount of greenhouse gasses sequestered (directly and indirectly) from promoting the conservation and restoration of natural resources and the environment totaled 2.14 million tons of carbon dioxide equivalent (CO2e) on average per year. It has been certified as accumulated CO2 absorption of 32.51 MTonCO2e (1.62 MTonCO2e/year) from 1994 to 2017, as referenced from the research findings of the 1 million rai Reforestation Project, Phase 4, conducted during 2017-2018 (research conducted every 3 years).
Social Value / Benefits 
  • Increase sustainable income from forest utilization.
  • Drive networks in environmental conservation.
Environmental Value / Benefits 
  • Increased forest coverage and green spaces
  • Increased greenhouse gas emission sequestration
  • Protected ecosystems
Other Value / Benefits
  • Serve as recreational and tourist destinations for the public and interested organizations.


Project/ Activity  Business Business
  • Participation in increasing and preserving the restoration of green areas in the Bang Kachao.
  • Building awareness of environmental conservation through three nature learning centers, namely the Sirindhorn Queen Sirikit Forest Learning Center, the Wang Chan Forest Learning Center, and the Urban Forest Learning Center.
  • Involvement in raising awareness of environmental conservation through the Green Globe Institute.
  • The number of direct beneficiaries from visiting the learning centers totaled 63,176 individuals across all three centers in 2023.
Employees Benefits 
  • Utilization of green spaces around the Company's main office premises for recreational purposes.
  • Utilization of green spaces in the surrounding area of Khung Bang Kachao and the 3 nature learning centers of employees.
Business Benefits
  • Establishment of community networks around the Company's premises and at the national level.
  • Enhancement of the Company's environmental conservation image at the national level.
  • Development of skills and expertise among employees in environmental conservation.


The results of social investment operations over the past 3 years (2021-2023)


The dimension of human, community, and societal
development (SOCIAL)

Unit
2021
2022
2022
Short term indicators
Total number of beneficiaries of social enterprise (SE) activities Individual
Community
Household


115 individuals
8 groups
(underprivileged)
255 households

348 individuals

494 individuals
Numbers of students enrolled (Fully Funded)  Kamnoetvidya Science Academy (KVIS) and Vidyasirimedhi Institute (VISTEC) Individuals/Year 256 71 69
Number of schools that benefited from education support and development activities organized through the PTT Group Model School Project School/year 109 109 109
Number of people who benefited from support for sports  Individuals/Year >685 3,557 20,000
Number of people who obtained employment through the Restart Thailand Project Individuals/Year 25,489 23,354 23,358
Number of agricultural groups benefiting from innovation projects under PTT: Smart Farming
Communities/Year

25

45
45
Number of community products developed through innovation projects under PTT: Smart Marketing
SKU/Year

255

31

36
Number of individuals receiving aid from natural disaster relief efforts through essential consumer goods support Individuals/Year 23,000 15,000 23,000
Number of disadvantaged individuals benefiting from quality of life development Individuals/Year >40 348 494
Long term indicators
Increased revenue from social enterprise operations Baht/year 7,397,753.78 >4,751,028 >6,170,000

Number of patented research outputs from Vidyasirimedhi Institute of Science and Technology (VISTEC)

Patents 32 16 75
Increased revenue and reduced overall community expenses from innovation projects under PTT: Smart Farming Million Baht/year 6.5 33 areas (out of 45 areas) increased by 10% from the original income 45 areas (out of 45 areas) increased by 10% from the original income
Increased revenue from supporting community product distribution channels through the Smiling Communities platform Baht/year

23,192,894

28,375,482 28,848,622
Social Return on Investment (SROI)                                                                                                                                                  1.79 times on average from the investment
- Café Amazon Project to unlock opportunities




%
7 7 0.64
- Coffee Bean Sourcing project from communities 20.7 22.4 3.47
-PTT Day Care Project 10 10 0.2
- PTT Group Lounge Project 15 15 0.2
- Thanaporn Girls' Home project 20 10  16.7
The dimension of promoting conservation and restoration of natural resources and the environment (Environment)
Unit
2021
2022
2023
Short term indicators
Expanded green areas and forested areas Rai 1,167,613 1,167,613 1,167,613
Number of beneficiaries from forest and green area utilization Household 6,647 6,647 6,647
Number of beneficiaries directly from visiting learning centers Individuals/Year 83,726 54,442 63,176
Long term indicators
Quantity of greenhouse gasses sequestered (both directly and indirectly) as a result of promoting the conservation and restoration of natural resources and the environment on a comprehensive scale Ton of carbon dioxide equivalents/year 2,140,000 2,140,000 2,140,000
Increased revenue from forest utilization Baht/year 280,000,000 280,000,000 280,654,442

Remark: Based on performance data disclosed in the One Report of 2021-2023.

Examples of Key Initiatives or Activities 

PTT Group's Innovation for Community Project

  • Operational activities have been carried out from 2021 to 2023, focusing on developing 3 main areas: Smart Farming, Smart Marketing, and Community Knowledge Management. These initiatives aim to address economic challenges within the community by promoting grassroots economic development through available networks, knowledge, innovation, technology, communication channels, and expertise. The overarching goal is to increase income and reduce expenses for the community.
    • Smart Farming
      • 485 farmers, covering 29 provinces, have been supported to become Smart Farmers.
      • Enhanced the learning centers in 4 regions to "Sustainable Innovation Learning Centers", stored and connected knowledge and innovations from PTT Group Innovation for Community Project. Also developed 8 pilot areas, totaling 12 learning spots, to serve as learning hubs and continue to expand on larger scale.
    • Smart Marketing
      • Community Product 
        • Chum Chon Yim Dai project has developed and increased opportunities to access community market channels, both online and offline. The project aims, to offer over 1,200 stock-keeping units (SKUs) on the platform, benefiting over 400 communities. Currently, 1,400 SKUs from all channels are participating in the project in 2023, representing 450 communities nationwide.
        • Community products totaling 1,400 SKUs from 450 communities have been developed and upgraded, focusing on packaging and quality and promoting marketing and distribution channels.
        • Increased revenue and decrease expenses more than 10% in 45 areas in 2022. Efforts were made to ensure that these operations were completed in all 45 areas by the end of the year.
        • Sales channels connected more than 1,400 SKUs from 450 communities achieved sales of THB 2,084,548 in 2023.
      • Community-based Tourism (CBT) 
        • The target revenue for each area must increase by at least 10% before the development.
        • 6 Community-based Tourism (CBT) destinations in 6 areas have been prepared for elevation to international standards and recognition, including: Mae Tha Subdistrict,  Mae On District, Chiang Mai Province, Phiman Subdistrict, Naga District, Nakhon Phanom Province, Ban Luang Subdistrict, Chom Thong District, Chiang Mai Province,  Na Haeo Subdistrict, Na Haeo District, Loei Province, Lam Sin Subdistrict, Sri Nakhon Khuean Khan District, Phatthalung Province, Ko Mak Subdistrict, Pak Phayun District,
          Phatthalung Province.
    • Community Knowledge Management
      • Community knowledge for expansion, dissemination, and advancement.
      •  Pilot areas with potential for communities to serve as learning points for innovation that can be applied in various local contexts

Benefits for stakeholders: Economic, educational and environmental aspects received potential development and promote the use of innovation and technology to enhance well-being. 

Benefits for PTT: It reinforces the good image of our commitment to participate in helping society in every dimension. Supporting the nation to successfully overcome the crisis as a good organization of society. In addition to playing the role of a national energy company with the main mission of creating energy security for the Thai people.

Key Indicators and Performance

PTT Performance Data: Economic