Sustainable Development Goals |
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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).
Plan | 2022 Target | 2022 Performance | 2023 Target | 2023 Performance |
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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:
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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:
Partnerships and collaborations with other entities
Social Enterprise and Institute
CSR Approaches
CSR Approaches: Development of Human, Community, and Social Resources (SOCIAL): Through Education Promotion | |||
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Input | Output | Impact | |
How | Social and Environmental | Social and Environmental | |
Support Formats
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Issues to Address:
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Social Value/Benefits
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Project/ Activity | Business | Business | |
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Employee Benefits/Value:
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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. | |||
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Input | Output | Impact | |
How | Social and Environmental | Social and Environmental | |
Support Forms
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Focused Issues
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Social Value / Benefits
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Project/ Activity | Business Aspect | Business | |
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Employees Benefits
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CSR Approaches: Promotion of Conservation and Restoration of Natural Resources and Environment (Planet) | |||
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Input | Output | Impact | |
How | Social and Environmental | Social and Environmental | |
Type of Support
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Focused Issues
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Social Value / Benefits
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Project/ Activity | Business | Business | |
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Employees Benefits
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The results of social investment operations over the past 3 years (2021-2023)
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Unit |
2021 |
2022 |
2022 |
Short term indicators | ||||
Total number of beneficiaries of social enterprise (SE) activities | Individual Community Household |
|
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 Product
- 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
- Smart Farming
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.