Sustainability

Social Value Creation

Sustainability

Social Value Creation

Sustainable Development Goals
    





Opportunities and Challenges

Due to the impacts of the COVID-19 outbreak on PTT’s operations, society at large, and possibly PTT’s sustainable development goals, PTT decided to establish social investment approach that aims to meet the requirement of stakeholders upon important yet urgent issues, including building economic development and opportunities, and employment among the organization’s surrounding communities, disadvantaged groups, and other networks at the national level. This is also associated with the adoption of technologies and innovation that can improve the efficiency in securing access to limited natural resources, addressing the effects of climate change, and raising awareness on environmental conservation, as well as delivering continuous social investments to create shared value for society and community in a more balanced approach, considering several factors such as the investment worthiness, the maximization of operational effectiveness, the operational adaptation to handle new challenges and fast-changing societal contexts. 



Management Approach

Social Value Creation 

PTT as Thailand’s national energy firm is committed to our mission to help drive Thai society toward a sustainable yet stable growth, we therefore conduct an issue-centric management with a focus on social investment approach that highlights two different dimensions including a dimension of social, community and human resource development, and a dimension of natural resources rehabilitation and conservation promotion. As a result, PTT simultaneously operates at both policy and practical levels while promoting engagement with community according to community relation operational approach to understand different contexts and requirements of community in each area and setting social and community investment strategies that are in line with the company’s business strategies and budget, and the requirements of community. Meanwhile, PTT encourages our employees to spend some time to perform public services through the PTT Volunteers Club and other projects dealing with environmental, social and community development, and PTT’s corporate culture cultivation to be a company that creates value for society.

PTT has a vivid intention to continue to invest on social and environmental activities in a sustainable approach. To achieve that, the company makes continuous business operation improvement as appropriate. In 2019, PTT issued operational frameworks based on both interior and exterior factors which encompass creating shared value strategy, improving the wellbeing among community and society, supporting the sustainable development goals, Thailand’s 20-Year National Strategy, and The Twelfth National Economic and Social Development Plan, as well as, recognizing the natural resources degradation, economic and social inequality, the access problem to energies, and survey results on community and society’s requirements. Furthermore, PTT focuses on applying the philosophy of sufficiency economy, building engagement with stakeholders as the key driver for business operation, supporting communities to address related issues according to community’s requirement prioritization. As PTT always placing trust in the potential of a community, the company commits to put social responsibility at the heart of our business to support Thais to play a role in driving Thailand toward sustainability. 

Ensuring that the approach in promoting community development is performed as planned, PTT established a community relation operation guideline to build better understanding and reduce the community’s concerns on the direct and indirect effects of business operations. The approach cosists of six steps, including:


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 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 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 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 community.

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


Significant Performances 

Overview of Operational Progress

PlansGoals for 2020Performance in 2020Goals for 2021
Engagement and budget support in social developmentGRI201-1 Budget support in implementing corporate social responsibility projects through two major approaches including People (Social, Community, and Human Resource Development), and Planet (Continuous Promotion of Environmental and Natural Resources Rehabilitation and Conservation). 620.37 million baht At least 1-3% of net operating profit (goal for 2020-2024)
Creating a culture of volunteering within the organization. Promote and raise employees’ awareness on environmental, community, and social responsibility and cultivate voluntary consciousness in their daily life. 918 employees who engaging in volunteering activities Focus on applying employees’ core competency into volunteering works.
Donations in a form of objects and services (In-king Giving). NA 13.05 million baht NA
Management expenses for Social Enterprise. NA 60.04 million baht NA

PTT’s Corporate Social Responsibility Projects

PTT simultaneously operates business and supports communities according to the two major approaches, including the social, community and human resources development (People), and the promotion of environmental and natural resources rehabilitation and conservation (Planet), which feature the following details of operation:

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

Social Enterprise and Institutes

Green Globe Institute
Reforestation Institute
Social Enterprise

Guidelines on Corporate Social Responsibility

Guidelines on Corporate Social Responsibility:
Human Resource Development through Educational Promotion
SDGs: 


Input Output Impact
How Social and Environmental  Social and Environmental
Types of Support
  • Budget
  • Duration of employee participation in activities
  • Donations in a form of objects and services
  • Management costs for corporate social responsibility activities
Issues to Solve 
  • Support the development of technological, scientific, and educational competency as a foundation to driving the country in the future.
  • Support teachers’ professional development through the improvement of teaching and learning in science and technology
  • The number of participants in activities/ the number of people receiving supports from activities.
    4,878 persons
  • The number of stakeholders receiving benefits.
    4,878 persons
  • The number of companies receiving benefits/ supports.
    141 companies
Factors for Other Productivity Measurements 
  • 28 patented researches of VISTEC
Social Values/ Benefits
  • Increase the number of personnel in science and technology in the country.
  • Increase the number of research and innovations that contribute to moving forward the country.
  • Promote and build athletic skills for youth.
Environmental Values/ Benefits
  • Increase the number of research that promotes eco-friendly development.
Projects/ Activities Business Business
  • A Memorandum of Understanding (MoU) on the provision of budget support to Kamnoetvidya Science Academy (KVIS) and Vidyasirimedhi Institute of Science and Technology (VISTEC)
  • STEEM+4E Model which is PTT’s educational development project.
  • Support on athletic development.
  • The number of employees participating in activities.
    566 employees
  • The amount of news reporting and media coverage about activities to the public.
    74 news
Values/ Benefits to Employees
  • Utilize knowledge to perform social contribution activities.
Values/ Benefits to Business
  • Connect the development of research works to other businesses in the PTT Group to increase manufacturing efficiency and develop new businesses.
  • Build a network of the company’s surrounding schools.
Guidelines on Corporate Social Responsibility:
Economic Development, Poverty Alleviation, Career Building and Creating Shared Value through Social Enterprise Projects
SDGs: 
     
Input Output Impact
How Social and Environmental Social and Environmental
Types of Support
  • Budget
  • Duration of employee participation in activities.
  • Donations in a form of objects and services.
  • Management cost on corporate social responsibility activities.
Issues to Solve
  • Reduce energy cost for community and organization by promoting the utilization of renewable energy.
  • Boost income by promoting distribution channels and improving community capability with a focus on the utilization of resources available in the area.
  • Increase employment for persons with disabilities, elderly people, and disadvantaged people through the implementation of Social Enterprise (SE) projects.
  • The number of participants in activities/ the number of people receiving supports from activities.
    • 82 persons
    • 1,526 households
    • 127 communities
  • The number of stakeholders receiving benefits.
    • 119 persons
    • 1,526 households
    • 127 communities
  • The number of companies receiving benefits.
    4 companies
Factors of Other Productivity Measurements
  • An increased income of 21.11 million baht/year
  • A decreased expense of 3.86 million baht/year
  • A decreased expense of 3.86 million baht/year
  • A reduced amount of wastewater of 168,715 cubic meters/year
Values/ Benefits to Employees
  • Reduce the household’s energy cost.
  • Increase the income of the community.
  • Increase employment for persons with disabilities, elderly people, and disadvantaged people.
Environmental Values/ Benefits
  • Reduce greenhouse gas emissions.
  • Address pollutions for community such as wastewater, and food scraps.
  • Increase water management efficiency for agricultural activities. 
Projects/ Activities Business Business
  • Development of clean energy participation management through biogas system from pig farms.
  • Development of clean energy participation management through solar cell system.
  • Development of clean energy participation management through water distribution system using Hydraulic ram pump.
  • Sustainable social investment in a form of social enterprise through the operation of Sarn Palang Social Enterprise Company Limited through several projects including Café Amazon for Chance, Community Coffee Sourcing, PTT Day Care, PTT Group Lounge, and Forest for Chance.
  • Promoting distribution channels and developing community products through the implementation of the ‘Community Can Smile, Vegetable Can Smile’ project.
  • The number of employees participating in activities.
    158 employees
  • The amount of news reporting and media coverage about activities to the public.
    67 news
Values/ Benefits to Employees
  • Utilize knowledge and expertise to contribute to society.
Business Values/ Benefits
  • Build a network of the company’s surrounding communities at the national level.
  • Positive image in promoting the utilization of clean energies.
Guideline on Corporate Social Responsibility Activities:
Promotion of Environmental and Natural Resources Rehabilitation and Conservation (Planet)
SDGs: 
Input Output Impact
How Social and Environmental Social and Environmental
Types of Support
  • Budget
  • Duration of employee participation in activities.
  • Donations in a form of objects and services.
  • Management costs for corporate social responsibility activities.
Issues to Solve
  • Increase the area of forests and green areas to be a greenhouse gas storage and ecological protection source.
  • Connect the utilization of forests and green areas to community and society.
  • Raise social awareness on engagement in environmental conservation.
  • The number of participants in activities/ the number of people receiving supports from activities.
    6,647 households
  • The number of stakeholders receiving benefits.
    6,647 households
  • The number of companies receiving benefits/ supports.
    5 companies
Factors of Other Productivity Measurements  
  • A cumulative number of forests of 1,169,772 rais of land
  • The amount of stored greenhouse gas at 2.14 million tons carbon dioxide equivalent per year
  • The value of forest utilization at 281 million baht/ year
Social Values/ Benefits
  • Increase income through the sustainable utilization of forest.
  • Drive a network of environmental conservation.
Environmental Values/ Benefits
  • Increase the area of forests and green areas.
  • Increase carbon sequestration.
  • Protect ecosystem.
Other Values/ Benefits 
  • Become a recreational and touristic attraction for the public and interested agencies. 



Projects/ Activities Business Business
  • Increasing and maintaining green areas in the city.
  • Increasing and maintaining green areas or forests outside the city.
  • Raise awareness on environmental conservation through the three natural learning centers including Sirinart Rajini Mangrove Ecosystem Learning Center, Wang Chan Forest Learning Center, and PTT Reforestation Institute.
  • Raise awareness on environmental conservation through Green Globe Institute.
  • The number of employees participating in activities.
    250 persons
  • Total number of visitors to the learning center of 83,726 persons
Values/ Benefits to Employees
  • Utilize the surrounding green areas of PTT Headquarters’ buildings.
Business Values/ Benefits
  • Build a network of the organization’s surrounding communities at the national level.
  • Positive image in realizing the importance of environmental conservation at the national level.

Performance of Social Investment over the Past Three Years (2018-2020)

Note:

Reference based on the information of the performance between 2018-2020 disclosed on the sustainability report.