Positive and Negative Impacts

PTT faces significant challenges concerning stability, safety, occupational health, and environmental conditions in the workplace due to the intricate nature of its production processes, the use of hazardous chemicals, and prolonged utilization of diverse production equipment. The activities or operations of stakeholders, including contractors, may impact PTT's equipment or operational areas, leading to unforeseen incidents that could result in loss of life, injury, illness, property damage, or disruption of critical operations. Such incidents can profoundly affect business operations and competitiveness. Moreover, these occurrences could have far-reaching effects on the country's economy, the quality of life for communities, and various stakeholders. Addressing these challenges requires PTT to effectively manage and prioritize security, safety, occupational health, and work environment. Furthermore, it necessitates the enhancement of business continuity management to efficiently handle various situations and risks that may arise in any form.

PTT is committed to systematically managing and mitigating risks concerning Safety, Security, Health, and Environment (SSHE). This involves applying engineering principles and tools in line with international standards, legal mandates, and diverse requirements for identifying hazards, assessing risks, and implementing controls across all stages of production, storage, design, usage, maintenance, inspection, testing, and transportation of products, including hazardous chemicals. These efforts extend to PTT's internal operations as well as those carried out by regular and external contractors, such as maintenance and product transportation services. Recognizing the potential environmental impacts of these activities, PTT employs various management methods and frameworks to proactively address risks and prevent adverse effects, thereby instilling confidence in the SSHE management system among all stakeholders.

Objectives / Targets

Under the commitment laid out in the Quality, Security, Safety, Occupational Health, and Environment (QSHE) policy, PTT establishes annual operational targets that are in line with the comprehensive sustainability management master plan. PTT's ultimate goal is to achieve zero accidents within the organization by 2030. Key performance indicators comprise:

• Lost Time Accident (LTA) of employees and contractors (person)
• Total Recordable Injury Rate (TRIR) of employees and contractors (time per 200,000  hours worked)
• Total Recordable Occupational Illness Rate (TROIR) of employees (time per 200,000 hours worked)
• Process Safety Events (PSE)
• Major Car Accident
• Major Truck Accident Rate (case per 1,000,000 kilometers)
• Major marine transportation accident rate (case per 1,000 vessel voyage number in port)

Moreover, corporate key performance indicators (Corporate KPIs) have been implemented to evaluate the performance of business unit executives and are subsequently integrated into business lines  targets within each business unit to mirror the management competencies of each unit. This alignment enables companies within the PTT Group to synchronize their objectives with the organizational context.

PTT Group’s Safety, Occupational Health, and Environmental Targets

PTT Group’s Quality, Security, Safety, Occupational Health, and Environmental (QSHE) targets of 2024.

PTT Group's Safety, Occupational Health Targets

Overall Management Approach

PTT QSHE Policy

PTT is dedicated to managing workplace safety, occupational health, and work environmental impacts as integral components of its Quality, Security, Safety, Occupational Health, and Environment (QSHE) management strategy. Endorsed by the Chief Executive Officer and President and the PTT’s Board of Directors. The overarching objective is to enhance stakeholder value in a balanced and continuous manner. Acting as a management framework, the QSHE policy ensures alignment across PTT and its subsidiary companies toward shared objectives. The emphasis is on profound implementation, characterized by:

• The policy is universally applied, encompassing all employees and contractors within PTT's supply chain and the PTT Group, guaranteeing adherence to laws, regulations, organization requirement, international standards, voluntary programs and/or collective agreements.
• It acts as a foundational framework for establishing both long-term and annual operational objectives within QSHE, which in turn informs organizational planning and performance metrics, assessed at each management tier.
• Risk management measures are implemented to mitigate potential losses stemming from incidents impacting lives, assets, production operations, and logistical processes, thereby fostering the well-being of employees, contractors, and stakeholders in terms of health, occupational safety, and environmental concerns.
• Vigorously manage risks to safeguard against, prevent, and mitigate environmental impacts.
• Foster transparent communication of operational results and performance to stakeholders, ensuring comprehension and awareness. This involves actively listening to their needs and expectations through providing opportunities for employees and contractors to participate and provide suggestions and feedbacks. To ensure that the performance is continuously reviewed and enhanced.
• Clearly delineate responsibilities to facilitate robust guidance and supervision from management across all levels.
• Enforce compliance with the QSHE policy by ensuring that all employees and contractors are well-informed, comprehend, and adhere to its principles.
• Establish an annual review process for QSHE policies, objectives, targets, and progress/plans led by the Corporate QSHE unit. This comprehensive review involves the participation of Quality, Security, Safety, Occupational Health, and Environmental Business Areas (QSHE BA), ensuring their valuable input. The reviewed policies undergo thorough examination by

   PTT's Management Committee and receive endorsement from the Chief Executive Officer and President and the PTT’s Board of Directors.

PTT Group Quality, Security, Safety, Occupational Health, and Environmental Policy

Governance Structure and management of Safety and Occupational Health

PTT implements a comprehensive oversight mechanism for safety and occupational health, commencing with the dissemination of policies, targets, and SSHE management standard throughout the organization. Each business unit assumes responsibility for controlling and supervising implementation within its operational areas and departments, ensuring compliance with the SSHE management system, guidelines, procedures, work instruction, and supporting documentation. QSHE units operate at the business line level, encompassing divisions such as natural gas separation, natural gas pipeline systems, innovation institutes, natural gas for vehicle, and the QSHE division overseeing main office building areas. PTT's duties include advocacy, guidance, and progress monitoring against established targets, plans, and performance indicators. Reports are submitted to management at operation, business line, and business unit all the way to management committee levels, culminating at the PTT Board of Director level. This process follows the Sustainability Governance Structure  to review and evaluate performance and effectiveness according to agenda base meeting.

Safety and Occupational Health Management Approach

PTT's safety management encompasses various aspects, including personal safety, process safety, product transportation safety, and vehicle safety, all with the overarching target of achieving zero accidents to foster confidence among stakeholders. This approach is guided by the PTT Integrated Management System (PIMS), which integrates security, safety, occupational health, and environmental management. Through PIMS, PTT ensures that SSHE risk management is in line with established policies and works towards meeting specific operational objectives. Additionally, for companies operating within the PTT Group, management practices are guided collectively by the principles outlined in the PTT Group Way of Conduct.

PTT Integrated Management System (PIMS)
Element M4: SSHE (Safety, Security, Occupational Health, and Environment)

The SSHE management system has undergone thorough review and updates, ensuring alignment with current Thai legislation, international standards, and leading practices, encompassing ISO standards and guidelines from GRI, WBCSD, and IPIECA. Furthermore, it maintains a proactive stance by consistently evaluating the organization's context and risk. Notably, it has been harmoniously integrated with other organizational management systems, enhancing seamless and efficient implementation across the board.

Furthermore, PTT's core operational facilities, encompassing natural gas separation plants, natural gas pipeline systems, natural gas for vehicle main and mother stations, , and the head office have attained certification to internationally recognized standards such as ISO45001 and ISO14001. These prestigious certifications are granted by the Management System Certification Institute (Thailand) (MASCI), a recognized certification body. Additionally, it also values adherence to standards like ISO50001 Corporate Social Responsibility (CSR-DIW), ISO22301 Business Continuity Management standards, etc. The certification process is meticulously conducted, considering the relevance and alignment with the expectations of stakeholders.

Moreover, PTT prioritizes the ongoing improvement of its safety management practices through thorough analysis, identification, and evaluation of various potential hazards and threats that could pose risks to the organization.

Employee Safety

To effectively control, prevent, and mitigate the risk of accidents that directly affect employees and contractors, PTT prioritizes the enhancement of its safety, occupational health, and environmental management systems in the workplace. Furthermore, there is a concerted effort to foster a safety culture across the organization, with an emphasis on engaging employees and contractors to promote safety awareness and practices, not only during working hours but also outside of them. Key initiatives encompass:

• Implementing robust processes to manage and oversee safety, occupational health, and environmental risks within the workplace. This begins with the identification of hazards, followed by thorough risk assessments, the development of risk mitigation measures, and strategies for minimizing impacts. These efforts entail the establishment of operational procedure, work instruction, and work standards that conform to global best practices.
• Crafting explicit process and procedures to nurture a strong SSHE culture throughout the organization, coupled with regular evaluations to gauge the maturity level of this culture. These assessments provide valuable insights for ongoing enhancements to operational procedure.
• Developing visual media and leaflets that outline PTT Life Saving Rules to serve as the cornerstone of basic safety regulations for all employees and contractors. These resources are mandatory in all work areas, facilitating internal communication and knowledge dissemination within PTT. They play a crucial role in promoting safe work practices, mitigating accident risks, preventing injuries and work-related illnesses. Additionally, they encompass procedures for work review, hazard identification, risk assessments, reporting substandard conditions or actions, the Stop Work Authority, and the Rights to Refuse Work. These materials are extensively utilized for communication, training, and fostering awareness among PTT's employees and contractors regarding fundamental safety regulations. In 2023, there was a notable reduction in accidents involving both employees and contractors compared to the previous year. PTT not only bestows upon its employees and contractors the privilege to decline hazardous tasks without repercussions (Right to Refuse Work) but also empowers them with the authority to halt operations when encountering potentially dangerous situations (Stop Work Authority).
• Creating a robust incident reporting system to empower employees to report any deviations from standards, encompassing accidents, near misses, substandard acts and conditions, and instances of non-compliance with laws, regulations, or operational procedures. The collected data undergoes thorough analysis to devise systematic controls and risk mitigation measures. In 2023, substantial improvements were implemented, such as integrating functionality to import car accident data obtained from insurance companies. This enhancement included tracking driver records and optimizing data utilization for incident summary reporting, thereby enhancing user satisfaction and fulfilling their requirements more effectively.
• Conducting thorough safety training sessions designed to meet legal obligations while addressing the specific training requirements of both employees and contractors.
• Continuously promote the Incident Injury Free (IIF) initiative across diverse operational sectors, commencing with the natural gas separation plants, where a structured five step problem-solving methodology encompassing Planning, Assessment, Engagement, Skills Development, and Sustaining is enacted. Simultaneously, it also embeds safety culture principles into the operations of the natural gas pipeline system. In 2023, concerted endeavors were undertaken to elevate safety awareness and instill safety-conscious behaviors through targeted training sessions involving personnel from all operational areas. Substantial strides in safety were realized through Small Group Activity (SGA) endeavors, resulting in an uptick in safety culture assessment ratings from 4.16 to 4.36 out of 5 following the integration of safety culture tenets within the natural gas pipeline system operations. Furthermore, PTT is committed to advancing safety culture continually, with plans to extend its influence throughout the organization.

Management of Occupational Health and Workplace Conditions

In overseeing the occupational health and workplace condition, PTT has devised the PTT Group Occupational Health Management System, consolidated into the PTT Group Occupational Health Management System Guideline, ensuring compliance with legal stipulations, industry best practices, and global standards. Key initiatives encompass:

• Engaging occupational physicians to perform thorough workplace assessments, conduct interviews with employees and contractors, and evaluate Health Risk Assessment (HRA) protocols to cover all conceivable hazards. This involves inspecting work environments, conducting occupational health screenings, establishing protocols for sample collection and analysis, implementing specific control measures to mitigate health risks, as well as scheduling annual occupational health examinations for all employees.
• Upon analyzing health check-up and medical treatment data in 2023, it was observed that the majority of employees suffered from non-communicable diseases associated with office work. Consequently, occupational health training courses were organized, encompassing fundamental ergonomic principles for computer work, manual handling, and material handling for both office and field workers. The training also delved into advanced topics and problem-solving strategies concerning computer ergonomics, measures to prevent hearing loss, and medical emergency management. Additionally, continuous health promotion initiatives were implemented to encourage employees and contractors to uphold robust health practices. Examples of these initiatives include ongoing exercise promotion programs like Walk and Run, Fun and Fit, and Fight Fat Fun.  
• Developing and refining operational guidelines pertaining to occupational health involves creating procedures for health check-ups, establishing criteria to assess health risks, outlining protocols to manage emerging infectious diseases within the PTT Group, and formulating guidelines for public health management and workplace health promotion within the organization. Additionally, ergonomic guidelines are being developed for computer work, manual handling, and material handling among PTT Group personnel, along with medical emergency management protocols. These endeavors are aimed at enhancing PTT's occupational health management and aligning it with the Health Performance Indicators (HPI) standards established by the International Association of Oil & Gas Producers (IOGP).

PTT has emphasized the importance of health care and prevention of the spread of emerging infectious diseases such as COVID-19. Consequently, PTT has developed the PTT Group Emerging Infectious Diseases Management Guideline with the objective of preparing for and responding to situations involving the outbreak of such diseases. This guideline addresses health, occupational health, and safety measures for employees and workers in operational areas, as well as potential impacts on business operations and society. It underscores the need for preventive measures and related health management, including the use of personal protective equipment, infection control, and ensuring a safe working environment. Additionally, it serves as a guideline for management to consider establishing task forces or emergency management centers to address outbreaks of emerging infectious diseases. Compliance with laws, regulations, guidelines from the Department of Disease Control, Ministry of Public Health, and relevant government agencies is also emphasized to minimize potential impacts, ensure business continuity, and efficiently restore operations to normalcy in the event of an outbreak.

Process Safety Management

Accidents occurring in the production process have the potential to inflict significant harm on human life, property, and the natural environment, while also affecting stakeholders across the supply chain. Recognizing this, PTT Group places a strong emphasis on accident prevention, particularly concerning severe incidents like fires, explosions, or the release of hazardous chemicals into the environment. This emphasis is achieved through the implementation of the Process Safety Management (PSM) system within key operational areas. The foundation of this approach lies in meticulous attention to the design and construction of manufacturing processes and facilities, adhering closely to engineering principles and global standards. Furthermore, employees are trained to operate machinery safely in accordance with operational manuals, and regular maintenance ensures that machinery and instrument remain suitable and compliant with international standards.

PTT Group has implemented a comprehensive system for determining and gathering Process Safety Leading and Lagging Indicators. This system follows established methods and guidelines for data collection in alignment with the international standard API RP 754. Lagging indicators for Process safety in tier 1 and 2 are deployed to relevant parties as the PTT Group’s annual QSHE targets. Continuous monitoring of operational performance allows for the swift identification of corrective and preventive measures, helping to mitigate losses arising from accidents in the production process.

In 2023, PTT Group continued its efforts to refine and strengthen the barrier validation processes for Major Accident Events (MAE), building upon the foundation laid by the implementation of Bow Tie Analysis techniques for assessing and mitigating safety risks in production processes since 2019. The primary aim of the barrier validation process is to verify the effectiveness and readiness of MAE control measures within the operational risk management framework, covering both equipment and human barrier. This entails regular updating and maintaining control measures to address any identified deficiencies promptly, ensuring their swift reinstatement when needed. Robust MAE control measures play a pivotal role in averting severe accidents, minimizing disruptions to production, and safeguarding business continuity. Additionally, they serve to alleviate potential impacts on nearby communities and the environment surrounding operational facilities. This endeavor involved collaboration with specialized consultants to validate MAE control measures in two critical operational zones: Gas Separation Plant Units 5 and 6. These areas are of paramount importance for evaluating the efficacy of both equipment-related safeguards and personnel-driven interventions. Moreover, the Company is actively fostering the advancement and enhancement of safety management standards in manufacturing operations across PTT and its affiliated entities. The primary objective is to prevent and mitigate the severe consequences of major incidents such as fires, explosions, and hazardous chemical leaks. Notably, in 2023, PTT's high-risk operational zones successfully implemented Bow Tie Analysis technique, encompassing 90% of the targeted areas, with intentions to extend this approach company-wide in the future. This effort also involves convening operational best-practice sharing sessions to enrich the collective knowledge and experiences of each entity, thereby significantly bolstering safety management standards within PTT's operational areas and its subsidiaries.

Additionally, in 2023, PTT arranged for a Safety Risk Assessment and Assurance program (PTT Safety Risk Assessment and Assurance) to evaluate risks and safety in PTT operational areas. Expert consultants from external safety process management companies conducted assessments to ensure the operational readiness of assets (Asset Integrity) and evaluated the Process Safety Management (PSM) system. These assessments aimed to elevate safety standards across the natural gas separation, natural gas pipeline transmission, and Natural Gas for Vehicle (NGV) business areas, totaling 24 operational zones.

Security Management

PTT has established security management standards and risk assessment guidelines for the PTT Group, ensuring a consistent approach to security across all operational areas. Moreover, it has developed methods for implementing security practices among personnel and assets, providing a robust framework for overseeing security operations. Regular reviews are conducted to ensure that these guidelines remain relevant and effective in different situations. Additionally, PTT collaborates with government agencies, state enterprises, and private sectors to conduct news-related activities and promptly seek assistance in emergency situations. Security preparedness plans are routinely rehearsed in operational areas of the PTT Group, complemented by emergency drills, to maintain readiness and ensure the effective implementation of emergency management systems.

PTT places great emphasis on advancing security management practices, categorizing its efforts into three primary areas: bolstering personnel skills, fine-tuning operational protocols, and incorporating safety innovations into practical application.

PTT acknowledges the potential human rights risks associated with security activities. Consequently, robust measures to uphold human rights are enshrined in the PTT Group Quality, Security, Safety, Occupational health, and Environmental policies. These measures include safeguarding the lives, assets, and data of the organization, along with offering training sessions for security personnel employed through outsourcing, covering self-defense strategies and screening protocols. Moreover, security assurance assessments are routinely conducted within all PTT Group operations to monitor the performance of security personnel, ensuring they fulfill their responsibilities without violating the rights of individuals. The policy respectfully encompasses security service partners within PTT's operational area and diligently conducts compliance audits every three years.

Transport Safety Management

PTT is dedicated to enhancing safety management systems for vehicle and product transportation to improve efficiency. The overarching target is to attain zero accidents across all modes of transportation, encompassing road, rail, and water routes. To achieve this goal, PTT has implemented the following measures: