Sustainability

Social Value Creation

Sustainability

Social Value Creation

Sustainable Development Goals
  





Opportunities and Challenges

As the primary national energy company in Thailand, PTT must ensure that our business activities are conducted with integrity and for the benefit of the Thai people. To demonstrate our commitment, PTT has established a strategic plan to leverage organizational resources to deliver social returns. This plan is based on a variety of approaches, including support through funding and donations, as well as social impact projects that support our corporate social responsibility goals. Through this plan, PTT seeks to strengthen our capacity to create shared value – contributing to both social and business benefits – and operate social enterprise activities.

Through stakeholder engagement processes that build relationships and understanding with communities surrounding PTT operations, the underprivileged, as well as other communities and groups across the country, PTT ensures that our activities reflect and align with the needs, expectations, and concerns of all stakeholder groups. PTT is committed to responding quickly in the case of our operational issues and accepting responsibility for any consequences, as proven by our response to the gas pipeline leak incident in 2020. We also contribute to rasing the standards of living for our communities and society. This ranges from efforts to help those affected by natural disasters to our longstanding support for communities throughout Thailand during the past two years, as the country faced the COVID-19 pandemic, which had created sudden changes Thai society and across all communities. These are both challenges and opportunities for PTT to tackle  promptly and efficiently support our society and communities, and continue to meet the expectations of all stakeholder groups. We are driven to achieve these goals to create shared value, maintain a balance of benefits for our organization and communities, and contribute to our path towards sustainability.


Management Approach

PTT has defined a strategy, including targets, to create shared value and advance the quality of life of our communities and society. This strategy is part of the Sustainability Strategic Direction, as outlined in the “PTT Sustainability Management Master Plan for Social and Environmental Responsibility 2021-2025”. PTT has defined long-term targets and key performance indicators (KPIs) that are cascaded to functional KPIs, and developed specific action plans to support these goals. Progress and performance against the targets and indicators are reported to management-level committees and the PTT Board – in line with what is specified in the Corporate Governance Structure – on a quarterly basis.

Social Value Creation 

As a national energy company, PTT is committed to our mission to advance Thai society towards sustainable and stable growth. Toachieve this mission, PTT manages relevant issues through investing in two priority areas – human capital, community, and social development (SOCIAL), and environmental and natural resource conservation and restoration (ENVIRONMENT). We implement activities at both the policy level and the operational level. At the same time, PTT prioritizes community engagement in line with our community relations approach to understand the specific contexts and needs of communities, which may vary across different geographies. To that end, we have established a social and community investment strategy that aligns with our business strategy and budget, and responds to community needs.  We continue to encourage employees to volunteer to serve the public through the Thai Volunteer Power Club and other initiatives related to social and community development and/or the environment to strengthen an organizational culture of corporate citizenship.

PTT aspires to sustainably invest in social and environmental projects. This means we continuously update our approach to correspond with the context at the time, and consider internal and external factors when planning our activities. We take into account our strategy to create shared value and advance the quality of life of our communities and society; our obligation to support the Sustainable Development Goals (SDGs), the 20-Year National Strategy, and the Twelfth National Economic and Social Development Plan; ongoing issues such as natural resource degradation, social and economic inequalities, and barriers to accessing energy; and findings from social and community needs assessments. Furthermore, PTT drives the integration of the Sufficiency Economy Philosophy and prioritizes stakeholder engagement as a key principle across all our activities. We support communities across different areas based on the priorities of that community. PTT believes in the capacity of local communities and thus is dedicated to implement social impact projects to support Thais in driving sustainability in the country.

Finally, to ensure that our efforts to support communities meet expected standards, PTT has defined an approach to guide community relations activities. This approach serves to efficiently reduce community concerns and obtain the approval of communities who have been directly or indirectly affected by PTT’s business activities. The approach includes six parts as listed below. 



1) Defining Target Groups:
Completely define target groups according to the assessment on the possible effects of projects/ corporate activities, and levels of interest and influence toward the implementation of projects/ corporate activities.

2) Prioritizing 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 Engagement Planning:
Utilize community information to establish a community engagement planning based on the priority levels of the community as classified.

4) Implementation based on Community Engagement Planning:
Implement the community engagement planning based on appropriation and convenience with the community with a focus on issues and interests toward the effects on the community while the objectives of projects and activities must be consistently considered.

5) Analysis and Assessment of Community Information Results:
Collect and assess the performance results of community development in a systematic way to create a database used for monitoring progress and further expansion as approved and agreed with the community.

6) Continuous Response, Monitoring, and Implementation:
Improve cooperation and collaboration with internal and external related agencies to maximize the effectiveness of the community engagement process. Assess the performance results to improve further community engagement frameworks.


Key PerformanceGRI 203-1, GRI 203-2

Progress Overview

Plan2020 Target2020 Performance2021 Target2021 Performance
Cash contribution to support and actively engage in social development. Continuously provide funding support for social impact projects in two priority areas – 1) human capital, community, and social development (SOCIAL) and 2) environmental and natural resource conservation and restoration (ENVIRONMENT). 620.37 million baht At least 1-3% of net operating profit (target for 2020 – 2024) 638.42* million baht

Employee volunteering during paid working hours to create a culture of volunteerism in the organization

Foster and advance social and environmental responsibility values in employees, and promote the integration of volunteering in their daily lives. The number of newcomers who volunteered for the first time increased by 20% (compared to the total number of volunteers over the last two years)
(38 employees)
Due to the COVID-19 pandemic, the target was changed to – increase engagement in volunteer activities for employees who have not volunteered before (newcomers) by 20% (compared to the total number of volunteers over the last two years) The number of newcomers Number of new comers who volunteered for the first time increased by 75% (compared to the total number of volunteers over the last two years)
(140 employees) 

the total working hours of employee volunteering to create a culture of volunteerism in the organization is 2,219 hours (as 0.891 million baht)

In-kind giving NA 13.05 million baht NA 21.94* million baht

Management overheads costs for social development programme

NA 60.04 million baht  NA 61.17* million baht 

Remark: * The budget for COVID-19 support and mitigation is excluded.

PTT’s Social Impact Projects

PTT implements social impact projects following a defined framework which includes two priority areas – human capital, community, and social development (People), and environmental and natural resource conservation and restoration (Planet). Details are presented below. 

Social, Community, and Human Resource Development
Promotion of Environmental and Natural Resources Rehabilitation and Conservation

Social Enterprise and Institute

Green Globe Institute
Reforestation Institute
Social Enterprise

Social Impact Priority Area

Social Impact Priority Area:
Human Capital, Community, and Social Development (People): Through Promoting Education
SDGs: 


Input Output Impact
How Social and Environmental Social and Environmental
Type of Support
  • Funding
  • Employee time
  • In-kind giving, including resources and services
  • Administrative costs for social impact projects
Target Issues
  • Support 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 17 graduates from the Vidyasirimedhi Institute of Science and Technology (VISTEC) (4 with master’s degrees and 13 with doctorate degrees) in 2021
  • 348 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 2021)
  • 60,100,000 baht in funding support for sports activities benefited over 685 athletes in 2021 (Due to the COVID-19 pandemic, some sports activities could not be organized.)
Social Value / Benefits
  • 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
  • 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)
  • PTT Group Model School STEEM+4E
  • Funding support for sports skill development
  • 12 public news posts and articles that covered education development activities and contributed to positive corporate reputation
Value / Benefits to Employees
  • Created a network for research and innovation development
Value / Benefits to Business
  • Intersections with research and innovation development for PTT Group business to increase process efficiency and advance new business development
  • Created a network of schools located around operational areas
Social Impact Priority Area:
Human Capital, Community, and Social Development (People): Through Economic Development, Skill Development for Employment, and Crisis Support and Mitigation Initiatives
SDGs: 
  
Input Output Impact
Approach Social and Environmental Social and Environmental
Type of Support
  • Funding
  • Employee time
  • In-kind giving, including resources and services
  • Administrative costs for social impact projects
Target Issues
  • Reduce energy costs for communities and the organization through advancing alternative energy options.
  • Increase incomes 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 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.
  • 24,699 jobseekers obtained employment through the Restart Thailand Project in 2021 (870 positions were social impact jobs)
  • 25 farmer groups (from 25 locations across Thailand) benefited from the Smart Farming activity under the “PTT Group Innovation for Happiness Project”
    267 community enterprises and social enterprises (representing over 1,500 individual beneficiaries in 2021 benefited from the Smart Marketing program
  • 6.5 million baht in increased incomes and reduced costs for communities achieved in 2021 through the Smart Farming activity under the PTT Group Innovation for Happiness Project
  • 267 SKUs of community products developed through the Smart Marketing program under the PTT Group Innovation for Happiness Project in 2021
  • 23 million baht in increased incomes in 2021 as a result of efforts to support the distribution of community products through the Community Smile Platform (30 million baht in accumulated benefits since 2020)
  • 23,000 people who were affected by natural disasters received support for basic needs and supplies in 2021
  • More than 40 underprivileged individuals benefited from livelihood development programs in 2021
Social Value / Benefits
  • Reduced household energy costs
  • Increased incomes for communities
  • Promoted employment for people with disabilities, the elderly, and underprivileged
Environmental Value / Benefits
  • 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 communities 
  • 48 public news posts and articles that covered PTT’s activities in economic development, skill development for employment, and crisis mitigation, and contributed to positive corporate reputation
Value/ Benefits to Employees
  • Gained opportunities to apply knowledge and expertise to contribute to society
Value/ Benefits to Business
  • Networked with communities at the operational level and  the national level
  • Strengthened reputation as a supporter of clean energy
Social Impact Priority Area:
Environmental and Natural Resource Conservation and Restoration (Planet)
SDGs: 
Input Output Impact
Approach Social and Environmental Social and Environmental
Type of Support
  • Funding
  • Employee time
  • In-kind giving, including resources and services
  • Administrative costs for social impact projects
Target Issues
  • Increase forest coverage and green spaces to support carbon storage and ecosystem conservation.
  • Create links with communities to leverage resources from forests and/or green spaces.
  • Foster environmental awareness in the 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
  • 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 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
  • Increased incomes from the sustainable use of forest resources. 
  • Achieved progress in moving forward with environmental conservation networks
Environmental Value / Benefits
  • Increased forest coverage and green spaces
  • Increased carbon sequestration
  • Protected ecosystems
Other Value / Benefits:
  • Created additional spaces for rest and recreation for the public and other interested agencies


Project/ Activities

Business Business
  • Contributions to the restoration, conservation, and expansion of green spaces at Khung Bang Kachao
  • 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
  • 1,981 visitors to the environmental learning centers in 2021 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 (2019-2021)

Overall
Unit
2019
2020
2021
    Long-term Indicators
    Relationship score from social
    and community group
Score - 80 80

Human Capital, Community,
and Social Development (SOCIAL)

Unit
2019
2020
2021
Short-term Indicators
Cumulative number of beneficiaries of social enterprise (SE) activities Individual
Community
Household


32 individuals
160 households


62
individuals
200
households

115 individuals
8 groups (underprivileged)
255 households

Cumulative number of beneficiaries of activities to promote clean energy consumption

Household

1,294

1,326

(Changed to beneficiaries from PTT Group Innovation for Happiness Project)

Number of beneficiaries of activities to promote employment and distribution channels for community products

Individual
Community

N/A

20
farmers
127 communities

Numbers of students enrolled (Fully Funded)  Kamnoetvidya Science Academy (KVIS) and Vidyasirimedhi Institute (VISTEC) Person/year - - 256
Number of graduates from the Kamnoetvidya Science Academy (KVIS) and the Vidyasirimedhi Institute (VISTEC) Person/year
78
84 88
Number of schools that benefited from education support and development activities organized through the PTT Group Model School Project School/year
178
139 109
Number of people who benefited from support for sports  Person/year 5,250 4,060 >685
Number of people who obtained employment through the Restart Thailand Project Person/year - - 25,489
Number of farmer groups who benefited from the Smart Farming activity under the PTT Group Innovation for Happiness Project Group/year
-

-

25
Number of community products that were developed through the Smart Marketing activity under the PTT Group Innovation for Happiness Project SKU/year
-

-

255
Number of people affected by natural disasters who received support for basic needs and supplies Person/year 96,000 12,970 23,000
Number of underprivileged individuals who benefited from activities to improve their quality of life Person/year - - >40
Long-term Targets
Increase in income achieved through social enterprise (SE) activities Baht/year 4,244,275 6,798,989 7,397,753.78

Increase in income and cost reductions resulting from activities to promote clean energy consumption

Baht/year

11,092,201

10,844,982


(Changed to increase in income from the PTT Group Innovation for Happiness Project) 

Increase in income achieved through activities to promote employment and distribution channels for community products

Baht/year

N/A

7,326,519

Number of research outputs developed by the Vidyasirimedhi Institute (VISTEC) that have been patented

Research output 30 18 32
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
Increase in income achieved through efforts to support distribution channels for community products through the Community Smile Platform Baht/year N/A 7,140,672 23,192,894

Greenhouse gas emission reductions (direct and indirect) achieved through activities to promote clean energy consumption

Ton of carbon dioxide equivalents/year

10,717

13,861

N/A

Social Return on Investment (SROI)
- Café Amazon for Chance





Percentage
10 10 7
- Community Coffee Sourcing  13.8 19 20.7
- PTT Day Care 27 16 10
- PTT Group Lounge 15 15 15
- Forest for Chance N/A 48 108
- Vegetables Can Smile N/A N/A 56
- Thanyaporn Home for Girls N/A N/A 20
Environmental and Natural Resource Conservation and Restoration (ENVIRONMENT)

Unit

2562

2563

2564
Short-term Indicators
Number of collaborative networks OUR Khung BangKachao project Organizations 34 34 34
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
Number of people who directly benefited from visiting the learning centers Person/year 204,000 83,726 1,981
Long-term Indicators 
Greenhouse gas emissions (direct and indirect) sequestered through supporting environmental and natural resource conservation and restoration 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

Remark: *The reported information is based on performance data disclosed in the Sustainability Report 2019 and the 56-1 One Report 2020-2021.

Key Projects and 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 joined other parties in mitigating the COVID-19 pandemic. Firstly, we donated over 400 ventilators and high-flow oxygen devices, alongside liquid oxygen, to over 300 hospitals located in areas with high infection rates across Bangkok and the region. In addition, PTT provided financial support and medical equipment to help set up seven field hospitals, and worked with the Bangkok Metropolitan Administration to establish mobile vaccination units in four vulnerable and highrisk areas. (At the same time, PTT continued the 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. PTT Group’s approach starts with “early screening”, which includes proactive testing and screening to identify cases and isolate confirmed cases as early as possible, followed by “early isolation”, where we support “green” infected cases in self-isolating at home through providing basic supplies and medicine as needed. The third part is “early treatment”, where PTT provides medical equipment and beds to support hospital capacity in accommodating more patients. PTT has also built on this project through establishing the End-To-End Mobile@1745 service. This service is targeted for those who have self-tested through ATK and tested positive. The service provides advice and access to treatment at field hospitals free of charge, and vaccination services for those who tested negative.
Benefits for stakeholders: Reduced risk of infection and death during the COVID-19 pandemic

Benefits for PTT.: Reputational benefits – beyond being known as a national energy company whose primary role is to secure energy stability in Thailand, these activities help reflect PTT’s commitment to be holistically engaged in corporate citizenship and support the country in facing the challenges of this crisis.

Stakeholder Feedback (see links below):

  1. https://www.youtube.com/watch?v=zANERpKamQk
  2. https://www.thairath.co.th/news/local/2198883
  3. https://www.facebook.com/thairath/posts/10160907537317439


Future Plans

Looking forward, PTT will continue to drive our strategy to create shared value throughout PTT Group. We will use the combined expertise and experience of PTT Group companies to work together to resolve social issues and achieve social outcomes. PTT has defined a target to allocate 1 – 3% of our net operating profits in social investments in our two priority areas – human capital, community, and social development (SOCIAL) and environmental and natural resource conservation and restoration (ENVIRONMENT). At the same time, we will remain active in engaging communities and diligent in managing the impacts of our business activities on surrounding communities. PTT is driven to continuously improve our performance and seek opportunities from new challenges, such as our commitment to reduce greenhouse gas emissions to become a net zero emission organization. To that end, we will develop innovation while making use of organizational knowledge and expertise in order to reduce costs and increase efficiency in expanding green spaces. We will also support initiatives to generate incomes for surrounding communities to ensure that we can operate alongside communities sustainably. In this way, PTT is continuously working to improve our capacity to respond to the needs, expectations, and concerns of all stakeholder groups, while being mindful of the specific contexts facing each community.