Sustainability

Human Rights Management

Sustainability

Human Rights Management

Human Rights Management

Commitment

PTT is mindful of human rights' importance to corporate sustainability. PTT has therefore laid down the foundation to ensure respecting human rights as PTT's fundamental practice, while upholding human rights principles as stipulated by the laws and international standards. This comprises the United Nations Universal Declaration of Human Rights (UNUDHR), the United Nations Guiding Principles on Business and Human Rights (UNGP), and the International Labour Organization (ILO). In conjunction, PTT has also joined in as part of the United Nations Global Compact (UNGC) and the Global Compact Network Thailand (GCNT). Additionally, PTT is also active in providing information to public sector, which supports the drafting of National Action Plan on Business and Human Rights (NAP) and the 4th National Human Rights Plan.

Therefore, PTT has adhered and respected to human rights principles in line with PTT Human Rights Statement and PTT Compliance Policy, and established Human Rights Issues as a part of the Group's Sustainability Management Policy and Framework. PTT has encouraged other companies in the group to apply and operate in line with the management framework, which requires disclosures of risk assessment and risk mitigation plan for transparency.







Building Corporate Culture in Human Rights

Roles and Responsibilities of the Board and Directors

Regarding the Group's Human Rights performance, PTT's Board of Directors has assigned Corporate Governance Committee to oversee PTT Group's Sustainability Management and Policy, which covers human rights management throughout PTT Group's supply chain. This is overseen by Organization Management and Sustainability Function, comprises Senior Executive Vice President and Executive Vice President for Sustainability Management. Furthermore, Corporate Management Department is assigned to manage performance in line with the Group's Human Rights Management System. Performance is reported to Corporate Governance Committee quarterly. This includes communicating policies to responsible functions, whose duty is to ensure effective compliance to human rights management approach.

Furthermore, Corporate Governance Committee closely monitors progresses and provided recommendations on operational plans, annual targets, results of human rights risks assessment, and risk management plan. The committee has approved the review of PTT Group Human Rights Management System. The Management System’s addition includes guidelines for corporate governance, compliance, and assessment of human rights impacts towards stakeholders. Also, PTT Board has monitored sustainability performance which is significant and may affect human rights, such as Climate Change management issues, Safety, and Anti-corruption. In 2019, there was a knowledge-sharing session organized on global trends and PTT Group’s readiness to directions of human rights management at an international scale for PTT Board, Executives, and relevant employees.

Building Corporate Culture in Human Rights

​Governance StructureHuman Rights Performance Indicators
PTT Board of Directors*
  • Greenhouse Gas Emission Intensity
  • Total Recordable Injuries Rate (TRIR)
Senior Executive Vice President for Organization Management and Sustainability
  • Greenhouse Gas Emission Intensity
  • Lost Time Accident (LTA)
Executive Vice President for Sustainability Management
  • Greenhouse Gas Emission Intensity
  • Lost Time Accident (LTA)
Vice President for Corporate Management System Department
  • Greenhouse Gas Emission Intensity
  • Lost Time Accident (LTA)

*Remark:

Key Performance Indicators set in accordance with the State enterprise Performance Appraisal (SEPA) and Corporate Key Performance Indicators are set to correlate with performances of the President and Chief Executive Officer, who serve as a members of the PTT Board of Directors.


Communication and Training

To foster understandings in business and human rights, PTT continues to raise awareness to all employees through internal journal articles, magazines and public relations emails. The content is drafted to ensure reader's ease in comprehension and cover contents about human rights statement/policy, approaches, management systems and case studies from various businesses. PTT also conducted PTT Group's Sustainability Management and PTT Integrated Management System (PIMS) training courses. The content covers human rights performances in business sector, as well as best practices in business operations with respects to human rights. The trainings commenced in 2014. As of now, there have been 49 classes of participants. Additionally, PTT has conducted an online course about PTT’s governance and compliance policy to encourage employees’ knowledge of ethical operations, anti-corruption, and human rights in operations. This course is required for all employees and determined as performance indicators of function- and division- managers onwards.

PTT conducted an academic seminar titled 'Business and Human Rights' for executives and employees in relevant functions including Compliance, Corporate Reputation and Social Responsibility Planning, Strategic Procurement, Land Acquisition, Security and Safety, and Corporate Communication and Branding. The seminar's content covers overview of international human rights management, the government's directions, and how human rights issues can be cascaded from the businesses to state enterprises.

For training of security officers, PTT stipulated that the security companies must provide necessary trainings to the security officers in line with the company's Term of References. Emphasis is placed on prevention of human rights violations, e.g. raising awareness that security and safety are basic human rights for all, avoiding the use of violence against others, and no use of violence against offenders. Moreover, security officers do not have the authority to make arrests, unless the offenders committed the offense on PTT's property. The accused are presumed innocent until proved guilty. In 2019, there was no complaints incurred from human rights about PTT’s security officers.


Business Partners throughout Supply Chain

PTT supports and encourages PTT's business partners to operate with consideration and respect to human rights, and in compliance with PTT's Human Rights Guideline. This starts from supplier screening, both existing contracts and new ones, in accordance to Environment, Social and Governance (ESG) criteria, in addition to fundamental criteria of quality and finance. Suppliers whose score did not reach established standards will not be allowed to be part of vendor list.

Notably, PTT adopted the Supplier Sustainable Code of Conduct which covers issues on environment, labor rights, business ethics, etc. The Code of Conduct is enforced on suppliers with the contract values at over 2 million baht, and/or whose work affects safety and environment. This includes vendors who wish to register as suppliers with PTT. There are also performance monitoring through suppliers’ monitoring and assessment plan since 2016, especially for critical suppliers and high risk suppliers. If violation of Supplier Sustainable Code of Conduct is found, the improvement plan has to be approached. PTT has the right to terminate the contract if those violations are still found.


Human Rights Due Diligence

PTT Group's Human Rights Management

In 2016, PTT has set up PTT Group Human Rights Management System to serve as a guideline for management of human rights issues related to PTT Group's business operations. It also supports PTT Group's efforts in applying the necessary human rights management processes that covers all of PTT Group's activities which may incur human rights impacts throughout the operation cycle. These activities include merger and acquisition, construction, and decommission. PTT has announced its adoption of the system, and communicated to companies within PTT Group accordingly to ensure appropriate deployment of the system. 

PTT Group's Human Rights Management


Human Rights Risks Assessment

PTT Group's Human Rights risks have been included as a part of the enterprise risk management. It was allocated as risks at functional level. Today, relevant units at functional level are managing human rights risk effectively, through risk management plan and reporting to relevant Committees. This comprehensive management approach resulted in zero human rights complaints. However, in case of high impacts and severity, PTT will consider management of human rights risks at a higher level, including business unit & support functional level and corporate level, respectively.

The risk assessment process covers identification of key issues, impacts on vulnerable groups, and the likelihood of impacts at the national-level of operations. Vulnerable groups include women, indigenous people, LBGTQI, underprivileged people and children. The objective behind this risk assessment is to consolidate corporate human rights risk reports, in conjunction with project-level human right risks reports.

The process of human rights risk assessment is as follows.

1. Define the Group's business boundaries

2. Establish the context on human rights

3. Identify/Assess human rights issues at operational areas and individual level

4. Risk Assessment

5. Control and Mitigation Measures Identification

6. Residual Risk Assessment

7. Monitoring and Reviewing


Human right risks are assessed on two factors: impacts and likelihood


Risk Rating Scale: Impacts

PTT ‘s Human Rights Risk Assessment

Impact Level Impact Description​
  Critical
  • Human rights impacts affect a larger scale of population groups beyond the scope of operational areas
  • The Company is unable to control or mitigate human rights impacts to restore the ability of an individual to enjoy his or her human rights
  • Impacts / Situations of human rights abuses require the involvement of independent, trusted expert advice from outside to aid companies in mediating issues
  Major
  • Operation is knowingly providing practical assistance or encouragement that has a substantial effect on the commission of human rights violation (Legal Complicity)
  • Human rights impacts were caused by the Company's operations or value chain, impacting stakeholders in operational areas
    The Company has human rights-related conflicts with Vulnerable Group
  Moderate
  • The Company receives benefits from human rights violations in the hands of other entity (Non-legal Complicity)
  • Business fails to address human rights-related concerns raised by concerns raised by internal or external individuals or groups
  Minor
  • Potential human rights impacts raised by internal or external stakeholders are resolved/prevented, using the Company's effective grievance mechanisms.

Risk Rating Scale: Likelihood 

The human rights impact depends on its scale, scope, and remediability.

Likelihood Level Likelihood Description
   Likely (>25%)
  • The event has occurred in the operation several times per year (>25%)
   Possible (10-25%)
  • The event occurred in the operation several times (10-25%)
   Unlikely (1-10%)
  • The event rarely occur in the operation, but possible to occur (1-10%)
   Rare (<1%)
  • The event occurred several times in the industry of the operation but unlikely to happen in the operation (<1%)

PTT has assessed human rights risk since 2015. The assessment covered 100% of PTT’s core business operation area, including the Natural Gas Business and International Trading Business. In 2019, the scope of PTT Group’s human rights due diligence has also been adjusted to fit PTT Group Way of Conduct. There are 15 subsidiaries operating in compliance with PTT Group Human Rights Management System, altogether accumulates to 28 areas across 14 countries. This is achieved through PTT-operated businesses, consisting of Petroleum Exploration and Production Business, Petrochemical and Refining Business, Oil and Retail Business, Coal Business, and Technology and Engineering Business.

Key human rights risks identified in PTT Group’s business operations consisted of occupational health and safety, migrant workers, security suppliers’ labor practice, community’s quality of life, and indigenous people’s lives. However, PTT Group’s human rights risk level, per 2019 risk assessment, remains in the range of low to moderate. Such result is due to development of human rights management plan and utilization of control measures suitable for each area. There is quarterly monitoring on the operations to ensure risks remain within risk appetite. The monitoring also ascertains that control measures execute with maximum efficiency.

Human Right Risk Issues  Percentage of areas assessed in the past 3 years (2017-2019) Percentage of areas with high human right risks  Percentage of risks with management plan and process in place Mitigation measures for areas with risks 
PTT’s Own Operations 
  • Labor Right Risks
  • Community Right Risks
  • Supply Chain Risks
  • Environment al Risks
  • Security and Safety Risks
  • Customer and Consumers’ Right Risks 
100 0 100
  • Operate according to PTT’s human Rights management System
  • Improvement of Supplier Code of Conduct in Human Rights Dimension
  • Business and Human Rights Awareness and Training
  • Improvement of human resources policy and employment practices against discrimination
Contractors and Tier 1 Suppliers
  • Safety and Occupational Health
  • Employment and working environment
  • Community Rights
  • Environment
100 0.2 100
  • Building and asset insurance
  • Employees' Individual Development Plan
  • Collect data and statistics of occupational safety
  • Drug and alcohol screening plan
  • Provide first-aid supplies
  • Provide information on updated status of all fire extinguishers
  • Set goals of energy consumption reduction, and GHG emission reduction
  • Monthly record of the use of water, electricity, and fuels 
Joint Ventures (including stakes above 10%)
  • Community rights
  • Supply chain
  • Environment
100 0 100
PTT identifies stakeholder groups who are potentially affected by its operations through stakeholders’ need assessment via engagement channels such as meeting, grievance centres, and survey and recommendation forms. For balanced management, the needs will be prioritized by the importance to the company and stakeholders. In 2019, the result of assessment showed the issues with high risk on human rights management, consisting of Climate Change (environmental and community rights), Product Stewardship (customers and consumer rights), and Human Capital Development (labor rights).

Grievance Management and Remediation

Grievance Management

PTT has developed grievance mechanism to receive complaints through internal and external channels in Thai and English, in order to ensure accessibility of all stakeholders and ensure the process that addresses all kinds of grievances, which also include human rights grievances, as well as the potentially affected stakeholders’ concerns and recommendations.
StakeholdersChannels to submit complaints and grievances
Employees
  • State Enterprise Employees Union of PTT PLC
  • Human Resource Management of each business unit
  • Employee Relations Division, through employee relations complaint system via phone or internet
  • Labour Relations Committee meeting, through employee representatives
  • Joint Consultation Committee (JCC)
  • Through pttvoice@pttplc.com, Employee Relations grievance system
Suppliers, Customers, and External Parties
  • PTT Customer Relations (Call Center 1365)
  • Submit complaint letters directly to CEO, Audit Committee, Executive Vice President, Office of Corporate Audit, Executive Vice President, Corporate Human Resource, or Vice President, Office of the President and Corporate Secretary, and Investor Relations.
  • Through various online channels, such as www.pttplc.com; www.pttbluecard.com; and Facebook pages of PTT News, We love PTT, PTT Blue Society, PTT Blue Card Application, etc.
  • Supplier meetings
Communities surrounding PTT's operations
  • Assign community relations officers to engage with local communities in accordance with the plan in each operation, to receive complaints, discuss needs and expectations, and listen to potential impacts from PTT's operations. All feedbacks will be used to improve the operation, design better complaint receiving process, and develop communication channels that are suitable to each area.

PTT is cognizant of the significance of whistleblower protection. PTT has an established procedure on whistleblower protection, including protection measures and fair process. The procedures and measures also cover witness and individuals who provide information or evidence. The company also sets up reasonable timeline for complaint management. For each step along the process, complaints received from employee must be manage within 30 days, while complaints received from external complainants must be investigated, resolved, and notified to complainants of its resolution and progresses within 7 working days. In 2019, there was no complaints incurred from human rights violations, or non-compliance practices against human rights laws.


Remediation

PTT prioritizes protection and remediation procedures for all individuals affected from its operations. The company provides channels to receive complaints particularly in crisis and emergencies in all areas of operations, set the process for expedient access to remedy, both as financial remedies (compensation, financial supports), and non-financial remedies. Non-financial remedies may include establishing emergency point to receive grievances and complaints to provide initial remediation, providing advices or recommendation supports from specialist, as well as providing communication channel to listen to concerns and complaints from stakeholders.

PTT has open channels for all affected individuals to report their complaints at the complaint mechanism of each project, or through PTT call center. For each complaint received, PTT will analyze the causes, find solution, and identify prevention measures. In case that the prevention and remediation processes cannot accommodate initial solution, PTT will designate the mechanism on prevention and remediation through grievance mechanism in the form of a tripartite taskforce. The taskforce consists of representatives from stakeholders including representative from local administration bodies, community leaders and relevant government agencies. This is to ensure that the case is properly and effectively managed, for the satisfaction of all parties.