Positive and Negative Impacts

PTT as Thailand’s leading national energy company, ensures that its business operations uphold integrity for the benefit of all Thais. PTT’s mission to maintain energy security while remaining as a good corporate citizen are channeled through these four dimensions within the social responsibility sector: Economic, Environment, People and Human Rights. Therefore, PTT has directed cooperation amongst its affiliated companies, alliance networks encompassing both public and Business Relationships through establishing specific operational structures to ensure that PTT’s core values are upheld. With the formulation of its Executive Vice President, Corporate Reputation and Social Responsibility. The division consists of six departments, namely, the Corporate Reputation and Social Responsibility Planning Department, the Corporate Social Responsibility Department, the PTT Reforestation and Ecosystem Institute, the Conservation of Water and Forests of Bangkachao (Corporate Organization), the Green Globe Institute and the Corporate Communication and Branding Department. Coupled with governing entities to support its goals such as the Sarn Palung Company Social Enterprise Co. Ltd. (SPSE) and the Power for Sustainability Foundation (PSFF) to best support the aforementioned dimensions. To best solidify PTT’s reputation and image for the organization, 2% of net profit each year are channeled through various processes, this includes but is not limited to support in the form of Donations, Corporate Social Responsibility (CSR) engagement to best enhance and promote social value creation through the Creation of Shared Values (CSV) and Social Enterprise (SE) support. PTT aims to create its utmost positive impact on society, such as knowledge sharing and transfer amongst communities to elevate and create career opportunities, supporting the marketing and showcasing of natural resource restoration and conservation, as well as disseminating knowledge and generating income for related communities. In addition, to its social value creation process, PTT envisions that youth are encouraged to pursue educational opportunities through the refinement and development of teachers and the education system of learning institutions. To increase students’ potential where the quality of life amongst those marginalized and underprivileged are elevated and prevented from negative impacts such as the impact of PTT's retreat after the completion of said project/s for stability. PTT aims to provide mechanisms and support such that the community can operate on its own through sustainable systems enacted.  PTT believes that prudent processes are required to prevent negative impact which may affect PTT later on, or amongst areas that do not cover PTT operations in comparison and declining impact regarding community relations with PTT in the future. Therefore, operations must be comprehensive and in line with needs, expectations and concerns of all stakeholders through a mutual process to foster engagement, relationships and understanding of communities around PTT establishments and operational areas. This largely pertains to society, communities and networks nationwide to create a balanced shared value between organizations and community societies and contribute to mutual sustainability for the future.

Objectives/Goals

In 2022, PTT continues to adhere to its operation in enhancing social value creation through these two dimensions, namely social human development and the promotion of conservation and restoration regarding natural resources and the environment. Along with rallying participation and management of PTT’s business operational impact on communities surrounding the establishment. This includes overseeing the group's overall value creation strategy where PTT has focused on mobilizing talents and expertise of its subsidiaries within PTT Group to formulate a cohesive holistic social outcome. Whilst in 2022, PTT had allocated a total budget of 1,086.40 million baht, of which totaled to 1.66 % of its net profit from operations, in accordance to the company’s social investment budget allocation policy for at least 1-3% of net profit for target years 2020 - 2024. Budget allocations are channeled through the following methods: Donations 42.60 %, Corporate Social Responsibility (CSR) related projects 56.20 % and Social Enterprise (SE) and related operations 1.20 % for 2019 - 2023 targets with limitations on the donation ratio not exceeding 30% and CSR combined with Social Enterprise not less than 70%.

2022’s social investment performance is reported to cover all dimensions of operations as defined above. As COVID-19 pandemic begins to ease its toll, operations of social value creation are operating in accordance with its annual operating plan. However, PTT Group has maintained its effort to promote its corporate social responsibility expansion since 2021, where PTT implemented the Same Breath Project to encourage Thailand’s Public Health system to respond to COVID-19 scenarios affecting the economy ranging from macro to household levels. This led to the establishment of the PTT Virtual Run project, where the project created opportunities for more than 60,000 youths to return to their educational system whilst reviving Thailand’s economy from increasing employment rates through the Restart Thailand project. This involves the development of skills to support career creation for farmers and communities through the Smile Innovation Project as part of PTT's social value creation. This propelled PTT’s reputation scores and resulted with PTT’s Corporate Reputation Score to receive 1st place (86 points) according to an opinion survey of stakeholders on PTT's business operation in 2022.

Management Approach

PTT Social Value Creation Policy  

As Thailand's national energy corporation, PTT is dedicated to advancing Thai society towards a steady and sustainable development. PTT tackles pertinent concerns by making investments in two main areas being human capital, community, and social development (SOCIAL), and environmental and natural resource conservation and restoration (ENVIRONMENT). PTT carries out its buisness acitivities at the operational activities and policy-level activities. To understand the unique conditions and requirements of communities, which may vary across different geographies, PTT prioritizes community participation in accordance with its community relations approach. To that purpose, the organization has devised a social and community investment strategy that is in line with its corporate strategy and budget serving to address community needs. PTT as a company continues to motivate and encourage staff members to volunteer to help the public through its Thai Volunteer Power Club and other programs focused on social and community development of the environment in order to establish an organizational culture of corporate citizenship and responisbility.

Corporate Governance Structure/ Mechanisms

Corporate Governance Structure

PTT has established goals for its approach to the formation and development of shared values and improving societal and community standards of living. As stated in the "PTT Sustainability Management Master Plan for Social and Environmental Responsibility 2021 to 2025," this approach is an element of the company's Sustainability Strategic Direction. PTT has developed detailed action plans to support these objectives and has established long-term targets and key performance indicators (KPIs) that descends into functional KPIs. According to the Corporate Governance Structure, progress and performance against the targets and indicators are reported to management-level committees and the PTT Board on a quarterly basis.

Processes/ Mechanisms for Impact Management

PTT has established its approach to direct operations related to community relations in order to ensure that the organization's efforts to support communities reach the desired standards. This strategy effectively quells community concerns and secures the confidence of communities whose residents have been directly or indirectly impacted by PTT's business operations. The strategy consists of the following six components.

1) Audience Target Identification
Comprehensive assessment of target groups according to the evaluation on the possible impacts of projects/corporate related activities, and levels of interest and influence toward the implementation of projects/corporate activities.

2) Prioritization of Communities:
Assess the priority levels of communities that affect the implementation of projects/corporate activities and identify methods and levels of engagement with the community classified by the priority levels from the results of levels of interest and influence toward the implementation of projects/corporate activities.

3) Establishment of Community Related Engagement Planning:
Utilize community information to establish a community engagement plan based on the level of importance of the identified community.

4) Implementation based on Community Related Engagement Planning:
Implement community engagement planning based on appropriate and convenient means in conjunction the community. With focus on issues and interests in relation to the impacts on the community and take into account the objectives of the project/activity on an ongoing basis.

5) Analysis and Assessment of Community Information Results:
Systematically collect and evaluate performance results of community development to create a database used for monitoring progress and further expansion as approved and agreed with the community.

6) Continuous Monitoring, Evaluation and Implementation:
To guarantee that the community involvement process is carried out effectively, foster collaboration and coordination with appropriate internal and external entities. This includes assessing performance and using the results to enhance community policy frameworks.

Corporate Citizenship Strategy

PTT strives to invest in social development and environmental projects in a sustainable manner. The organization strives to adapt its strategy on a constant basis to take into account both internal and external elements while planning related actions. PTT takes into account the business's objective to improve societal and community quality of life and to generate shared values. This includes PTT's responsibility to assist with the Sustainable Development Goals (SDGs), the 20-Year National Strategy, and the Twelfth National Economic and Social Development Plan in relation to persistent problems such natural resource degradation, social and economic inequality, impediments to accessing energy sources, and conclusions from social and community needs assessments. Stakeholder engagement is prioritized as a core principle throughout all of PTT's business operation activities, and the company also aspires to further the integration of the Sufficient Economy Philosophy. Depending on the priorities of the particular community, PTT aims to provide support to communities in various locations. PTT is committed to conducting social impact programs to assist Thais in advancing sustainability in the nation because it believes in the potential of local communities.

Remediation/ Preventative Measures
PTT's Social Impact Projects

PTT executes social impact initiatives according to a predetermined framework with two priority areas, human capital, community, social development (SOCIAL), environmental and natural resource preservation and rehabilitation (ENVIRONMENT). Related descriptions of related projects are provided below:

Social, Community and Human Resource Development

Promotion of Conservation and Restoration of Natural Resources and the Environment

Partnerships and Cooperation with Related Agencies

Social Enterprise and Institute

Green Globe Institue

Reforestation

Social Enterprise

Social Impact Priority Area

Guidelines for Social Impact Projects: Human Capital, Community, and Social Development (People): Through the Promotion of Education			SDGs:
Input		Output	Impact
How		Social and Environmental	Social and Environmental
Type of Support Funding Employee time dedication for activities In-kind giving, including resources and services Administrative overhead costs for social impact projects	Key Target Issues Support educational subjects such as science and technology education development to establish a foundation for national development in the future. Build teacher capacity in science and technology education.	71 graduates from the Kamnoetvidya Science Academy School (KVIS) (Grade 12) and 20 graduates from the Vidyasirimedhi Institute of Science and Technology (VISTEC) 2 with master’s degrees and 18 with doctorate degrees) in 2022 338 research outputs from the Vidyasirimedhi Institute of Science and Technology (VISTEC) in 2021 109 schools benefited from the PTT Group Model School Project’s initiatives to support education development in 2022 189,937,005 baht in funding support for sports activities benefited over 3,557 athletes in 2022	Social Value / Benefits to Society Contributed to the development of science and technology experts in the country Advanced research and innovation that support national development Built and strengthened sports skills for youth beneficiaries Environmental Value / Benefits to Society  Increased research that supports environmentally-friendly development
Project/ Activity		Business	Business
Funding support for long-term development of science and technology education through the Kamnoetvidya Science Academy School (KVIS) and the Vidyasirimedhi Institute of Science and Technology (VISTEC) Development of PTT Group Model School STEEM+4E Funding support for physical sports skill development		Number of news or media reports on educational promotion activities generated to the general public in order to create a positive image for the organization. 423 News Release in 2022	Value / Benefits to Employees Created a network for research and innovation development Value / Benefits to Business Intersections to research and innovation development for PTT Group business to increase process efficiency and advancement of new business development Created a network of schools located around operational areas

Guidelines for Social Impact Projects: Human Capital, Community, and Social Development (People): Through Economic Development, Skill Development for Employment, and Crisis and Mitigation Support Initiatives			SDGs:
Input		Output	Impact
How		Social and Environmental	Social and Environmental
Type of Support Funding Employee time dedication for activities In-kind giving, including resources and services Administrative overhead costs for social impact projects	Key Target Issues Reduce energy costs for communities and the organization through advancing alternative energy options. Increase income channels through community capacity building, with a focus on initiatives that leverage local resources in combination with knowledge and innovation, and supported by promotion of new distribution channels. Organize capacity building initiatives to promote employment for those marginalized people with disabilities, the elderly, and the underprivileged Provide support to assist communities during crisis conditions, in particular focusing on the quality of life and economic conditions.	23,354  of jobseekers that obtained employment through the Restart Thailand Project in 2022 45 farmer groups (from 45 locations across Thailand) benefited from the Smart Farming activity under the “PTT Group Innovation for Happiness Project” in 2022 33 Areas (of 45 Areas)  increased incomes and reduced costs 10% of last incomes for communities achieved in 2022 through the PTT Group Innovation for Happiness Project 28,375,482  million baht in increased incomes in 2022 as a result of efforts to support the distribution of community products through the Community Smile Platform (61,505,102 million baht in accumulated income since 2020) 15,000  total amount of people who were affected by natural disasters and received support for basic needs and supplies in 2022 More than 348 underprivileged individuals benefited from livelihood development programs in 2022	Social Value / Benefits to Society Reduced household energy costs Increased incomes for communities Promoted employment for people with disabilities, the elderly, and underprivileged Environmental Value / Benefits to Society  Reduced greenhouse gas emissions Reduced pollution – such as wastewater and food waste – in communities Increased efficiency in water management for agricultural uses
Project/ Activity		Business	Business
Restart Thailand Project PTT Innovation for Happiness Project Community Smile Project Support for victims of natural disasters Initiatives to advance the quality of life of underprivileged and marginalized communities		Amount of number relating to news or media outlets that report on economic development and promotion activities of PTT, promotion and development of skills to build careers and help mitigate impact of crisis to the general public in order to create a positive image for the organization. News or media reporting on economic development promotion activities relating to career creation promoting local business and skills to the public to create a positive image for the organization. 3,367  of news publications broadcasted in 2022	Value / Benefits to Employees Gained opportunities to apply knowledge and expertise to contribute to the society Value / Benefits to Business Fostered network alongside with communities at the operational level and the national level Strengthened PTT reputation as a supporter of clean energy

Guidelines for Social Impact Projects: Environmental and Natural Resource Conservation and Restoration (Environment)			SDGs:
Input		Output	Impact
How		Social and Environmental	Social and Environmental
Type of Support Funding Employee time dedication for activities In-kind giving, including resources and services Administrative overhead costs for social impact projects	Key Target Issues Increase forest coverage and green areas to support carbon storage and ecosystem conservation. Create links with communities to leverage resources from forests and/or green spaces. Foster environmental awareness amongst the general public and increase their engagement in environmental conservation.	1,167,613 rai of green spaces increased since the 1 Million Rai Forest Restoration Project started in 1994 to the year 2022. 281 million baht in benefits from forests per year on average (Reference: 4th Impact Evaluation of the 1 Million Rai Forest Restoration Project, 2017-2018 (The research is completed every three years.) 2.14 million tons of carbon dioxide equivalents of greenhouse gas emissions (direct and indirect) sequestered on average per year as a result of PTT’s Environmental and Natural Resource Conservation and Restoration projects (Reference: 4th Impact Evaluation of the 1 Million Rai Forest Restoration Project, 2017-2018 (The research is completed every three years.)	Social Value / Benefits to Society Increased incomes from sustainable practices of consumption when it comes to forest resources  Achieved progress in championing forward with environmental conservation networks Environmental Value / Benefits to Society Increased forest coverage and green spaces Increased greenhouse gas emission sequestration Protected ecosystems Social Value / Other Benefits Created additional spaces for rest and recreation for the public and other interested agencies
Project/ Activity		Business	Business
Contributions and participation to the restoration, conservation, and expansion of green spaces at Khung Bang Kachao area. Promoting awareness of environmental conservation through the three environmental learning centers – Sirinath Rajini Ecosystem Learning Center, Wang Chan Forest Learning Center, and the Metro Forest Learning Center Contributions to increase awareness and understanding of environmental conservation through the Green Globe Institute.		54,442  visitors to the 3 environmental learning centers in 2022 were direct beneficiaries.	Value / Benefits to Employees Benefited from green spaces around PTT Headquarters Employees were able to make use of the green spaces in Khung Bang Kachao and the three environmental learning centers Value / Benefits to Business Networked with communities at the operational level and at the national level Strengthened reputation as a supporter of environmental conservation at the national level Built employee skills and expertise in environmental conservation

Performance on social investment from the past 3 years (2020-2022)

Human Capital, Community, and Social Development (SOCIAL)	Unit	2020	2021	2022
Short term indicators
Total number of beneficiaries of social enterprise (SE) activities	Individual Community Household	62 individuals 200 households	115 individuals 8 groups (underprivileged) 255 households	348
Numbers of students enrolled (Fully Funded)  Kamnoetvidya Science Academy (KVIS) and Vidyasirimedhi Institute (VISTEC)	Person/year	-	256	71
Number of schools that benefited from education support and development activities organized through the PTT Group Model School Project	School/year	139	109	109
Number of people who benefited from support for sports	Person/year	4,060	>685	3,557
Number of people who obtained employment through the Restart Thailand Project	Person/year	-	25,489	23,354
Number of farmer groups who benefited from the Smart Farming activity under the PTT Group Innovation for Happiness Project	Group/year	-	25	45
Number of community products that were developed through the Smart Marketing activity under the PTT Group Innovation for Happiness Project	SKU/ปี	-	255	31
Number of people affected by natural disasters who received support for basic needs and supplies	Person/year	12,970	23,000	15,000
Number of underprivileged individuals who benefited from activities to improve their quality of life	Person/year	-	>40	348
Long term indicators
Increase in income achieved through social enterprise (SE) activities	Baht/year	6,798,989	7,397,753.78	>4,751,028
Number of research outputs developed by the Vidyasirimedhi Institute (VISTEC) that have been patented	Research output	18	32	16
Increase in income and cost reductions for communities resulting from the Smart Farming activity under the PTT Group Innovation for Happiness Project	Million Baht/year	-	6.5	33 areas (out of 45 areas) 10% increase from the original income
Increase in income achieved through efforts to support distribution channels for community products through the Community Smile Platform	Baht/year	7,140,672	23,192,894	28,375,482
Social Return on Investment (SROI)
- Café Amazon to Create Opportunities	Percentage	10	7	7
- Community Coffee Sourcing Project		19	20.7	22.4
-PTT Day Care Project		16	10	10
- PTT Group Lounge Project		15	15	15
- Thanyaporn Home for Girls Project		N/A	20	10
Environmental and Natural Resource Conservation and Restoration Dimensions (ENVIRONMENT)	Unit	2020	2021	2022
Short term indicators
Increase in forest coverage and green spaces	Rai	1,167,613	1,167,613	1,167,613
Number of people who benefited from the forests and green spaces	Household	6,647	6,647	6,647
Number of people who directly benefited from visiting the learning centers	Person/year	83,726	1,981	54,442
Long term indicators
Number of people who directly benefited from visiting the learning centers	Ton of carbon dioxide equivalents/year	2,140,000	2,140,000	2,140,000
Increase in income from forests	Baht/year	280,000,000	280,000,000	280,000,000

Examples of Key Projects /Activities

Giving Breath Project^{SDGs 3.8, 3.b}

Material Sustainability Issue: Social Dimension: People’s Well-being Create Shared Value and Increase the Quality of Life of Our Communities and Society. Build Understanding, Relationships, and Engagement, and Support Society and Communities / Support to Promote Health and Public Health Activities / Social Investment to Improve Community Standards of Living 

Performance: PTT Group has made joint efforts with external entities in the mitigation of COVID-19 pandemic through its Giving Breath Project beginning 2021 through support on areas such as financial budgetary donations, medical equipment, establishment of field hospitals and proactive deployment of mobile vaccine units in vulnerable and high-risk areas (alongside with its Restart Thailand Project to support the economy through promoting employment and incomes). PTT collaborated with the Ministry of Public Health, the Institute for Urban Disease Control and Prevention, the National Health Security Office (NHSO), and hospital foundations under the Bangpakok Group and the Piyavate Hospital to optimize our capacity in COVID-19 support activities and established end-to-end COVID-19 screening and field hospital systems. To further efforts in relief, PTT Group expanded its End to End Mobile @1745 to empower the public health system in dealing with situations that leads to impact ranging from macroeconomic level to households including high amounts of schoolchildren who are at risk of dropping out of the education system. This led to the establishment of the Breath for Children project, which was initiated with the intention of PTT to formulate its Education Equality Fund to bring children who are out of the education system back to school in the 2022 school year. PTT also aims to Provide opportunities for school children and youth during their transition period. The organization’s goal is to offer 150 million baht in scholarships through the Equitable Education Fund to more than 60,000 young people from low-income and economically affected households nationwide through the PTT Virtual Run by converting walking or running activities into scholarships at the target of 600,000 kilometers. By every 10 distances each kilometer will be worth 2,500 baht in scholarships, which is sufficient to integrate one child back to school this past May. The success of the first 600,000 kilometers that completed within a short time in which inspired PTT to continue this activity with an elevated and more ambitious goals of 20 million steps to become a budget of 20 million baht in order to set up an initial fund to help children and youth within education crisis whist ensuring that assistance is directed towards children at risk of falling out of the system during emergencies.

Benefits for stakeholders: Those affected by the spread of the COVID-19 pandemic are allowed accessibility to the public health system with ease. In addition, also gaining economic and educational support.

Benefits for PTT: Reflects PTT’s commitment to contribute to society in every dimension alongside the nation to recover from situations of crisis from serving the public as a role model organization for society. In addition to acting as a national energy company whose main mission is striving to create energy security for all Thai people.