| Sustainable Development Goals |
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Corporate Governance
As the country's national energy company, holds the status of a state-owned enterprise and a listed company on the Stock Exchange of Thailand (SET), PTT realizes its key missions to engage in transparent management, corporate governance and equitable treatment of all stakeholders, aiming at developing the organization to be a role model for good corporate governance. The Company acts in compliance with applicable laws, rules, and regulations, as well as in accordance with the corporate governance principles for listed companies prescribed by the Securities and Exchange Commission (SEC) and the Stock Exchange of Thailand (SET). This includes the corporate governance principles and guidelines for state enterprises and those of the Office of the State Enterprise Policy Committee (SEPO). It believes that good corporate governance is a management system which embodies fairness, credibility in the lens of stakeholders, and enables PTT to have proper, effective, and efficient management in place, to the maximum extent, to promote PTT's competitiveness for sustainable growth in accordance with the vision of "Powering Life with Future Energy and Beyond". Another important element is being an organization that operates with integrity, honesty, transparency, and does not tolerate any form of corruption. These altogether serve as a driver that steers and enhances competitiveness, both in short-term and long-term, in order to strengthen the confidence of all investors, financial institutions, and business partners toward our business collaboration, thus contributing to added value for shareholders and balanced benefits of all stakeholders.
Internal control and risk management serve the purpose of instilling confidence in stakeholders regarding the efficiency and reliability of PTT's operations. This includes ensuring compliance with laws, regulations, and directives, as well as establishing appropriate internal controls aligned with the level of risk. Priority is given to evaluating internal controls both at the organizational and process levels, in line with international standards on internal control and the adequacy assessment of internal control systems set by the Stock Exchange of Thailand (SET). Moreover, guidelines for suitable internal control measures are outlined by the National Anti-Corruption Commission (NACC). PTT conducts annual assessments to consolidate findings on the effectiveness and efficiency of its internal control system for regular submission to regulatory authorities, on a yearly basis.
PTT Board of Directors prioritizes and actively fosters a culture where PTT operates as an efficient organization, excelling in its business operations, upholding exemplary corporate governance, and demonstrating outstanding management practices. The focus remains on generating enduring benefits for shareholders while maintaining a balanced consideration for the interests of all stakeholders. Consequently, PTT establishes policies and ensures compliance with principles of corporate governance, ethical standards, code of conduct, and sustainable management standards. PTT is committed to continuously enhancing and elevating its corporate governance framework to maximize effectiveness. Recognizing that transparent and ethical business conduct builds trust among all stakeholders, the Board of Directors staunchly supports the organization's sustainable development endeavors.
PTT Suppliers Sustainable Code of Conduct
PTT Corporate Governance, Ethical Standards, and Code of Business Ethics Handbook
The Corporate Governance, Ethical Standards, and Code of Business Ethics Handbook, commonly referred to as the CG Handbook, serves as a comprehensive guide for all PTT personnel. It outlines the principles and practices that employees must acknowledge and adhere to, providing a framework for their conduct and responsibilities. This handbook encompasses guidelines for fostering good corporate governance, understanding the roles and duties of the Board of Directors as leaders dedicated to sustainable value creation, establishing objectives and goals for sustainable business operations, enhancing board effectiveness, recruiting and developing management and staff, promoting innovation and responsible business practices, implementing appropriate risk management and internal control measures, ensuring financial credibility and transparent financial disclosures, engaging with shareholders, adhering to ethical business practices and moral standards, respecting laws and international human rights principles, preventing money laundering, maintaining political neutrality, avoiding conflicts of interest and related-party transactions, safeguarding confidentiality, handling internal information responsibly, treating customers and consumers fairly, interacting with competitors, managing procurement and vendor relationships, fulfilling social, community, and environmental responsibilities, including employee welfare practices, handling creditor relations, conducting internal controls and audits, managing gift-giving and receiving, ensuring stability, safety, occupational health, and environmental sustainability, protecting intellectual property rights, and utilizing information technology responsibly. Additionally, it emphasizes responsible communication, reporting unethical business conduct, and complying with the prohibition on gift-giving to PTT staff. Collaboration among all stakeholders is encouraged to refrain from offering gifts to PTT personnel at any time.
The PTT Board appoints the Corporate Governance and Sustainability Committee, tasked with formulating policies and operational guidelines related to good corporate governance, risk management at operational and internal control levels, legal compliance, organizational regulations, anti-corruption, and anti-collusion measures, as well as sustainability management, and social, community, and environmental care. This is to promote and emphasize sincere adherence to the principles of good corporate governance. PTT establishes the Governance Risk and Compliance Management Committee (GRCMC), a management-level committee chaired by senior executives. It is responsible for overseeing, driving, and promoting operations in line with established plans. The oversight and promotion of ethical conduct and the resistance to corruption and collusion within PTT are managed by the Good Governance and Corporate Ethics Department. They develop long-term plans and action plans for good corporate governance and the prevention of corruption and collusion, which are then approved by the Corporate Governance and Sustainability Committee (CGSC) and the PTT Board for implementation by relevant units. Various activities such as GRC Forums, PTT Group CG Day, CG Tips, CG Do & Don'ts, GRC Podcasts, GRC Short VDOs, and GRC Lessons Learned are conducted through internal emails and the CG Intranet system. Furthermore, training courses cover topics including auditing/governing transactions with third parties, basic knowledge of economic crime prevention measures, basic knowledge of anti-corruption laws, guidelines, and investigation/interrogation techniques, conflict of interest, and insider trading, as well as communications through GRC Knowledge Awareness Workshops. Additionally, the CG Handbook and business ethics are integral parts of the annual performance evaluation in terms of Behavior Key Performance Indicators (KPIs), linked through organizational values.
Business Code of Conduct
Consistent communication and emphasis on the corporate governance principles and business code of conduct have led to a continuous increase in employees' knowledge and understanding of these principles. This ongoing improvement enables them to apply these principles effectively in their work. As a result, PTT operates as an organization with integrity, practicing good corporate governance and mitigating the risk of ethical violations through key activities, including:
- Training sessions on ethics and business conduct cover a range of topics, including seminars and materials on good corporate governance and anti-corruption measures. These sessions, along with other courses, are provided to both executives and employees. They include The MD Academy program, foundational courses on economic sanctions, basic legal knowledge regarding anti-corruption laws (from the SEC), investigative techniques, conflict of interest and insider trading, and a comprehensive briefing on good corporate governance, anti-corruption measures, and compliance practices specifically tailored for new PTT employees and those joining the International Trade Business Unit (TBU Pre-Career). These training efforts aim to equip participants with the necessary knowledge and guidance for adhering to principles of good corporate governance, ethical business conduct, and effective anti-corruption practices.
- Utilizing diverse communication channels and hosting seminar events, such as producing video interviews featuring PTT board members and executives, aims to enhance awareness among all executives and employees regarding the practices of good corporate governance, risk management, and compliance with laws and regulations. These initiatives also underscore the importance of adhering to CG principles and implementing measures to combat corruption and collusion.
- The GRC Forum 2023 event, themed "Beyond with GRC #BetterThanGood," celebrated its 10th consecutive year, aiming to emphasize and enhance understanding of the principles of good corporate governance, risk management, and compliance with laws and regulations. The goal was to effectively apply these principles in daily work practices by executives and employees alike. In 2023, the event adopted a hybrid format, with senior executives participating in panel discussions to share insights and experiences on conducting business based on GRC principles under the theme "Beyond GRC for Sustainable Growth." This initiative aimed to fortify PTT's integrity culture and bolster its reputation as a morally responsible corporation while driving sustained business growth both domestically and internationally.
- The PTT Group CG Day 2023 event, themed "Good to Great: CG Empowering for the Future," celebrated its 15th consecutive year. PTT remained steadfast in its commitment to raise the standards of corporate governance across its group companies, aiming to bring them to a comparable level. To achieve this, a dedicated PTT Group Corporate Governance Committee was appointed to oversee planning, execution strategies, and proactive communication. Moreover, the PTT Group CG Day event was orchestrated to advocate, promote, and disseminate good corporate governance practices among the group's entities, including PTT, PTTEP, GC, TOP, IRPC, GPSC, and OR. The event targeted committees, executives, and employees of the PTT Group, along with partners, customers, stakeholders, and esteemed guests from external organizations, such as representatives from the Office of the National Anti-Corruption Commission, Anti-Corruption Foundation, Office of the Auditor General, and the Securities and Exchange Commission.
- The GRC Knowledge Awareness Workshop activity, introduced for the first time in 2023, targets employees within the upstream petroleum and natural gas business group, the New Business and Infrastructure Group, as well as interested employees. Its aim is to cultivate awareness and comprehension of GRC (Governance, Risk, and Compliance) principles. The workshop will exemplify how to integrate work with GRC principles and foster a stronger GRC culture among personnel within the organization.
Third-party Assessment
As a listed company on the stock exchange, PTT is mandated to partake in the Corporate Governance Report of Thai Listed Companies (CGR) assessment, a collaborative effort between the Thai Institute of Directors Association (IOD) and the Stock Exchange of Thailand (SET), conducted annually. In 2023, PTT maintained its streak of receiving “Excellent” CG Scoring for the 15th consecutive year. Notably, the CGR criteria for 2023 were refined to elevate supervision levels and encompass sustainability issues comprehensively. This adjustment aligns with the 56-1 One Report guidelines, emphasizing Environmental, Social, and Governance (ESG) information, and adheres to the guidelines set forth by the Organization for Economic Co-operation and Development (OECD). The evaluation criteria are structured into four categories as follows:
- Prioritizing shareholders' rights and equal treatment.
- Considering the needs and concerns of stakeholders to foster sustainable business practices. This involves addressing human rights management, implementing anti-fraud and anti-corruption measures, and conducting comprehensive risk assessments to mitigate potential risks of anti-fraud and anti-corruption.
- Maintaining transparency through accurate and timely disclosure of essential company information, including divulging financial performance, shareholding structures, and corporate governance practices to stakeholders in a clear and comprehensive manner.
- Board of Directors' responsibilities, which entail appointing a dedicated individual or unit to monitor compliance.
Key Performance
The comprehension level of employees regarding Corporate Governance (%) |
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Feedback regarding the implementation of good corporate governance and anti-fraud and corruption policies (%) |
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Ethics for Practices with Business Competitors
Commercial competitors are external entities with which PTT competes within the framework of free-market capitalism. Competition should always be conducted ethically and fairly, without resorting to misinformation, deceit, or any other improper methods. PTT upholds a set of best practices outlined in its corporate governance manual, emphasizing ethical standards and integrity in all business operations. In 2023, PTT maintained a commendable record, with no disputes or legal conflicts arising between the Company and its business competitors.Complaint Management and Grievance MechanismsGRI2-26
Complaint Mechanisms
PTT has established a comprehensive policy for receiving and managing complaints in a timely, clear, fair, and transparent manner while ensuring confidentiality and protection for complainants and witnesses. Complainants are provided with the means to track the progress of their complaints through the dedicated complaint system and labor relations department. Furthermore, PTT offers multiple channels for reporting complaints, including violations of business ethics by external parties. These channels include the 1365 Contact Center, the Corporate Communication and Branding Department, the Office of the President, the Good Governance and Corporate Ethics Department, and the Investor Relations Department.Additionally, PTT provides a dedicated channel for receiving tips on corruption via its website http://www.pttplc.com/ and through "PTT Voice" (pttvoice@pttplc.com), allowing stakeholders to report any instances of corruption or misconduct within the organization. Information received through these channels is promptly forwarded to the relevant department for investigation and action in accordance with established procedures. PTT has continually reviewed and enhanced the Rule on Complaints and Whistleblowing against Fraud, Malpractice, Misconduct, and Non-Compliance with Laws or Organizational Regulations B.E. 2565 (2022). This is to provide clear criteria and guides for filing complaints and whistleblowing to ensure consistent and transparent guidelines, investigation/interrogation across the organization. Additionally, measures have been implemented to safeguard and ensure fairness for complainants and individuals cooperating in providing relevant information throughout the supervision and investigation process.
Rule on Complaints and Whistleblowing against Fraud, Malpractice, Misconduct, and Non-Compliance with Laws or Organizational Regulations
B.E. 2565 (2022)
In 2023, PTT Public Company Limited received a total of 15 complaints through its channels dedicated to reporting corruption, malpractice, misconduct, and non-compliance with organizational regulations. Upon thorough examination, it was determined that 13 of the complaints were unfounded, while the remaining 2 are currently undergoing further investigation and examination. Any wrongdoing be substantiated, appropriate disciplinary or legal actions will be pursued. Additionally, suggestions arising from these complaints are promptly conveyed to relevant stakeholders for consideration, with the aim of improving processes and implementing measures to prevent recurrence in the future.
Number of Complaints Regarding Fair Operation PracticesGRI 205-3, GRI 406-1 (Cases)
2023 | |
|---|---|
| Number of complaints received | 15 |
| Scrutinized | 2 |
| Number of violations of Code of Ethics undergoing investigation/completely investigated | 0 |
| No substantiated grounds | 13 |
| Number of completed inquiries into alleged Code of Ethics violations | 0 |
| Non-compliance | 0 |
| Corruption or Bribery | 0 |
| Privacy Violation | 0 |
| Discrimination | 0 |
| Sexual Harassment | 0 |
| Harassment | 0 |
| Conflict of Interest | 0 |
| Money Laundering or Insider Trading | 0 |
| Others | 0 |
Notes:
1. PTT has taken disciplinary action against an offender based on a complaint received in 2022, with the completion of the complaint management process in 2023 resulting in the termination of employment without compensation. The relevant parties have been informed of the summary findings of the complaint, and further legal procedures are being pursued. Additionally, measures are being implemented to improve processes and enhance oversight to prevent recurrence. This includes mandatory training for employees involved in the process, aligned with procurement requirements and their respective duties as committee members. Mechanisms for systematic review of task progress and success are also being established.
2. Information regarding the number of disciplinary offenses committed by employees can be reviewed for further insights. https://www.pttplc.com/th/Sustainability/Social/Sustainablehumanresourcemanagement.aspx
Anti-Fraud and Corruption
Objectives/Targets
PTT is dedicated to conducting its business operations with integrity, transparency, fairness, and in strict adherence to the principles of corporate governance. It is committed to upholding relevant laws, regulations, and standards both domestically and internationally, unequivocally rejecting all forms of corruption, whether direct or indirect. Therefore, PTT mandates that directors, executives, employees, and any individuals acting on behalf of or for the benefit of PTT strictly adhere to its anti-fraud and anti-corruption policies.
The Corporate Governance and Sustainability Committee (CGSC) are tasked with providing comprehensive policies and operational guidelines concerning good corporate governance, operational risk management, internal control, compliance with laws and regulations, and anti-corruption measures, including the receipt and handling of complaints related to corruption and non-compliance. This ensures that the management places a high priority on combating fraud and corruption while strictly adhering to anti-corruption protocols. To further reinforce its commitment to governance and risk management, PTT has established the Governance Risk and Compliance Management Committee (GRCMC), chaired by an Executive Vice President, which serves as the focal point for anti-corruption efforts within PTT. This committee aligns with governmental policies and directives, fostering collaboration to prevent and combat corruption at all levels of the organization. The Good Governance and Corporate Ethics Department is entrusted with developing an annual action plan for good corporate governance and anti-corruption initiatives at PTT, which approved by the CGSC and the PTT Board of Directors. Subsequently, relevant departments are engaged to implement these plans across various operational areas.
Management Approach
PTT has announced the implementation of PTT Anti-fraud and Corruption Policy and No Gift Policy. This policy is reinforced by the development of robust systems, mechanisms, and measures to monitor personnel performance, fostering an ethical and moral work environment in line with the principles of corporate governance. PTT unequivocally rejects all forms of corruption, whether direct or indirect, and emphasizes heightened awareness at all organizational levels, spanning from directors and executives to employees and affiliated individuals. The anti-fraud and anti-corruption policy at PTT encompass several key areas:
- Fraud This encompasses any action aimed at illicitly seeking personal or third-party benefits, including:
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Asset Misappropriation: The unauthorized taking of property belonging to others or that mutually owned by others for personal or third-party gain.
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Embezzlement: Deceiving others through false statements or concealment to obtain property from them or a third party. It can also cause the deceived person or a third party to make, withdraw, or destroy any rights document.
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Financial Statement Fraud: Fraudulent accounting practices involve manipulating accounting numbers by exploiting loopholes in accounting principles and utilizing various alternatives in accounting measurement and disclosure. This manipulation aims to alter information in the financial statements to suit specific, often illegal, purposes.
- Corruption: Corruption entails initiating, receiving, or consenting to the receipt, offer, or pledge of property or other advantages to government officials, personnel from government agencies, or individuals from private organizations. This is done to induce them to exercise, refrain from exercising, expedite, or delay any action that falls under their lawful authority and responsibilities. Such actions are aimed at obtaining unlawful advantages, either for oneself or others, or to sustain business or other inappropriate benefits unless permitted by applicable laws, norms, or practices.
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- PTT personnel refer to directors, executives, and employees at all levels within PTT.
- Individuals associated with PTT include contractors, agents, consultants, subsidiaries, or any other individuals acting on behalf of or in connection with PTT, regardless of their authorization status.
Moreover, PTT maintains a stance of political neutrality, with no policy to offer financial or non-financial support to any political party. The organization ensures transparency in charitable donations and financial sponsorships as outlined in its anti-fraud and corruption measures. This includes establishing and revising anti-fraud and corruption policy, assessing related operations, managing risks, and reviewing internal control processes to prevent fraud and corruption effectively and continuously. PTT also communicates these messages to various stakeholders, including employees and partners, through initiatives like annual vendor seminars, aimed at preventing corruption within the organization and fostering trust among external parties in PTT's transparent operations. In 2023, PTT has taken steps to enhance its anti-fraud and corruption policy to encompass regulations related to the recruitment or engagement of government officials. This initiative aims to clarify operational procedures concerning the involvement of government officials and raise awareness among employees to refrain from utilizing such channels for personal benefit or causing conflicts of interest.
PTT is dedicated to elevating its status as a trusted entity to bolster its operations and facilitate business expansion. This endeavor necessitates agile responses to evolving landscapes across various domains, while upholding transparency in operations, adhering to principles of good corporate governance, implementing robust risk management practices, combating corruption effectively, and ensuring comprehensive internal controls and compliance with pertinent laws, regulations, and standards (Governance Risk and Compliance: GRC). To this end, PTT has established a rigorous process for monitoring and overseeing transparency in dealings with external parties, known as the Third-Party Screening Program. This initiative sets forth stringent standards for vetting the qualifications of entities engaging in transactions with PTT, thereby fostering efficient risk management and internal control frameworks. In 2023, PTT announced criteria and manuals for assessing and supervising transparency in transactions with third parties, based on predefined prohibited criteria (Blacklist), and implemented a dedicated database system for transparency checks. This system serves as a central hub for accessing essential information required for risk assessment, thereby streamlining operational processes with efficiency and expediency. Additionally, PTT established the PTT GRC Advisory Team to offer guidance on executing transparency assessment procedures and managing incidents or anomalies detected in dealings with third parties (Incident Management).
PTT has achieved certification as a member of the Thai Private Sector Collective Action against Corruption (CAC) for the third consecutive term. Notably, PTT received its initial CAC membership certification in 2014. This reiteration of certification underscores external recognition of PTT's dedication to transparent and accountable operations, alongside its steadfast commitment to combatting corruption in all its manifestations. Presently, PTT endeavors to extend invitations and encouragement to its business partners, including distributors and other stakeholders, to participate in the certification initiative. This concerted effort aims to comprehensively eradicate corruption risks across the entirety of the supply chain, fostering a culture of integrity and ethical conduct throughout.
Fraud and Corruption Risk AssessmentsGRI 205-1
Since 2017, PTT has diligently developed and maintained a fraud and corruption risk management manual, which undergoes annual review and approval by the PTT Management Committee (PTTMC) to ensure alignment with business operations and relevant criteria. This manual serves as a cornerstone for evaluating fraud and corruption risks at the operational level, aimed at mitigating the company's exposure to potential risks arising from such activities. It adheres to stringent internal control measures prescribed for corporate entities to prevent bribery of government officials, as stipulated by the Organic Act on Prevention and Suppression of Corruption B.E. 2564 (A.D. 2021), Section 176, and in accordance with established guidelines. This approach is consistent with PTT's Anti-corruption Policy, guiding the assessment of risks associated with fraudulent activities and facilitating the design of appropriate internal control measures.
Since 2017, PTT has conducted comprehensive fraud and corruption risk assessments, expanding the scope in 2019 to encompass the entire organization through a GRC assessment.
In 2023, a comprehensive evaluation of fraud and corruption risks has been conducted across 151 departments and direct-report divisions, beginning with the delineation of departmental or direct-report divisions procedures. These procedures were categorized into core processes, aligned with each agency's roles and responsibilities, and support processes, which every department was obligated to assess.
The evaluation revealed that the control score, as per the Anti-corruption Policy, attained the maximum score of 4, indicating robust control measures. However, three processes were identified with very high-risk levels, namely corporate governance, organizational leadership, adherence to business laws, and accounting management. Overall, the control score reflects a commendable level of sufficient and appropriate control, with internal control measures diligently adhered to on a regular basis.
Training and Communication on Anti-fraud and CorruptionGRI 205-2
PTT prioritizes the enhancement of knowledge and understanding among its directors, executives, and employees regarding anti-fraud and corruption measures. Various training courses are conducted to achieve this objective, encompassing topics such as good corporate governance and anti-corruption. Executives and employees undergo, for instance, training sessions, which cover topics such as the criteria and validation of qualifications for individuals engaging in transactions with PTT, foundational insights into anti-corruption legislation, courses offered by the National Anti-Corruption Commission (NACC) on investigative principles and techniques, modules addressing conflicts of interest and insider trading, and workshops focusing on the principles of corporate governance, fraud prevention, and anti-corruption strategies during the onboarding process for new hires at PTT and the International Business Unit (TBU Pre-Career). These educational endeavors aim to equip participants with the necessary knowledge and skills to effectively uphold principles of corporate governance, business ethics, and ethical conduct while combating fraudulent activities and corruption.
PTT offers a range of E-learning courses focusing on corporate governance and anti-fraud and corruption practices, allowing employees to select courses tailored to their job roles. These include: (1) CG and Anti-Fraud and Corruption E-Learning, which aligns its content with the CG Handbook, covering key practices such as preventing insider trading, managing conflicts of interest, and combating corruption. (2) Conflict of Interest Course, addressing the complexities of balancing personal and public interests. (3) Basic Knowledge Course on the Organic Act on Prevention and Suppression of Corruption, B.E. 2561 (A.D. 2018), complemented by public relations resources for executives and employees to deepen their understanding across all domains. Participation rates in these training programs have exceeded 91.8%, 90.9%, and 90.9%, respectively.
Moreover, all directors, executives, and employees are required to study, comprehend, and endorse the CG Handbook, which includes ethical standards and the Anti-Corruption and Corruption Policy. In 2023, 100% of directors, executives, and employees acknowledged the CG manual by signing to affirm their understanding and commitment to its principles.
Acknowledgement of CG Handbook (Performance) |
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| Year | Target | Performance |
|---|---|---|
| PTT's Anti-fraud and Corruption Operations | ||
| 2020 | Enhance requirements and guidelines pertaining to complaints and reporting corruption to ensure greater efficiency and foster trust among all stakeholders. | Successfully enhanced requirements and guidelines pertaining to complaints and reporting corruption. |
| 2021 | Review and implement:
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Review and implement:
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| 2022 | Revise and refine the requirements and guidelines for complaints and reporting of corruption to increase effectiveness to bolster trust among all stakeholders. | The terms and guidelines concerning complaints and the reporting of corruption were ratified during the PTT Management Committee's meeting No. 34/2022 on September 1, 2022. |
| 2023 |
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| 2024 |
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| Private Sector Collective Action Coalition Against Corruption (CAC) | ||
| 2020 |
Submitting the renewal application for the third consecutive term to maintain membership in the Thai Private Sector Anti-Corruption Coalition. |
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| 2021 | To be certified as a member of the Thai Private Sector Collective Action against Corruption (CAC) for the third consecutive term. | Successfully certified as a member of the Thai Private Sector Collective Action against Corruption (CAC) for the third consecutive term on March 31, 2021. |
| 2022 |
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| 2023 | Submitting the renewal application for the fourth consecutive term to maintain membership in the Thai Private Sector Anti-Corruption Coalition. |
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| 2024 |
To be certified as a member of the Thai Private Sector Collective Action against Corruption (CAC) for the fourth consecutive term.
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Assessment Results and Relevant Awards
| Years | 2019 | 2020 | 2021 | 2022 | 2023 |
|---|---|---|---|---|---|
| PTT's operations regarding corporate governance and anti-fraud and corruption |
Transparent Organization Award
|
-
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Transparent Organization Award | Transparent Organization Award | Transparent Organization Award |
| Integrity & Transparency Assessment (ITA) |
Level A
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Level A
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Level A | Level A | Pass |
| Other assessments/awards |
-
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The assessments of ASEAN Corporate Governance Scorecard: ASEAN TOP 20 PLC and TOP 3 PLC (Thailand)
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- | The assessments of ASEAN Corporate Governance Scorecard: ASEAN TOP 20 PLC and TOP 3 PLC (Thailand) | - |
*Based on the revised ITA assessment outcomes for 2023 as evaluated by the NACC.
Key Improvement during the Past Year
PTT conducts an annual review of its corporate governance policy, Anti-fraud and corruption Policy for PTT and its subsidiaries, the CG Handbook, ethical standards, and the Fraud and Corruption Risk Management Manual. In 2023, PTT completed a thorough review of these policies and manuals and confirmed their current relevance. They remain aligned with applicable laws, regulations, standards, and best practices at both national and international levels. Furthermore, PTT has enhanced its Anti-fraud and Corruption Policy by incorporating provisions related to the hiring or appointment of government officials. Additionally, improvements have been made to the CG Handbook by introducing guidelines for hiring or appointing government officials. These enhancements aim to clarify procedures regarding the engagement of government officials and raise awareness among employees to prevent the misuse of such channels for personal gain or conflicts of interest.
TransparencyGRI2-15
Directors, executives, and employees at all levels are required to complete a conflict of interest disclosure form for PTT annually. Additionally, they must report any potential conflicts of interest or risky situations promptly to their supervisors. Supervisors then assess the situation and implement appropriate corrective actions, such as temporarily reassigning tasks for employees with conflicts of interest or mitigating risks in other ways.
Besides, PTT utilizes the Continuous Control Monitoring and Auditing System (CCMS) to analyze reports of conflicts of interest in conjunction with the Procure-to-Pay process. This system helps identify transactions that may pose significant conflicts. Upon analyzing the data from the CCMS for 2023, no significant conflicts of interest were detected.
Reporting of Employee Conflicts of Interest (%) |
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Compliance with Laws and RegulationsGRI2-27
Compliance Policy
PTT places utmost importance on conducting business with integrity and strict adherence to applicable laws, rules, and regulations. To uphold this commitment, PTT has established a Compliance Charter for its legal and regulatory agency, the "Legal Compliance and Organizational Regulations Department." This department is tasked with overseeing corporate legal and regulatory compliance, including collecting relevant laws, conducting risk assessments, and providing guidance to organizational departments to ensure compliance. It also monitors, reviews, and reports on compliance outcomes to relevant executives and committees, facilitating correct and lawful operations within the organization. Moreover, there is collaboration with specialized legal and regulatory compliance departments (2nd line) to oversee adherence to laws and regulations pertinent to specialized sectors. This encompasses providing guidance, assistance, oversight, and evaluation of operational units (1st line) to ensure the proper conduct of PTT's diverse businesses in compliance with legal and regulatory frameworks.
Moreover, PTT has implemented a Compliance Policy and Compliance Framework to guide personnel in adhering to the Company's standards and complying with applicable laws and regulations in their respective operations. Should there be any inquiries regarding laws, regulations, or the supervisory process concerning compliance, individuals are encouraged to engage with support entities such as the Legal Counsel Office or the Legal Compliance and Organizational Regulations Department. Moreover, discussions can be facilitated with specialized legal and regulatory compliance departments (2nd line) within PTT, which are specifically focused on addressing the relevant subject matter.
PTT has instituted key performance indicators (KPIs) to assess the annual performance of various departments, emphasizing adherence to laws and regulations with the overarching objective of achieving zero non-compliance. This is encapsulated in the Corporate KPI: Non-Compliance metric, which serves as a benchmark for evaluating compliance efforts. Additionally, PTT measures the learning outcomes of executives and employees to gauge their understanding and application of compliance principles.
Furthermore, the policy of overseeing operations to align with laws, rules, and regulations is among the directives extended to companies in which PTT maintains ownership stakes, as stipulated in the PTT Group Way of Conduct. This ensures a uniform set of guidelines across PTT and its subsidiaries, promoting consistency and alignment in matters pertaining to legal compliance.
Tracking process to assess compliance with legal requirements and support mechanisms.
PTT maintains a proactive approach to staying abreast of new or amended laws relevant to its business operations and regularly communicate to related department. This includes conducting regular assessments of legal risks and ensuring compliance with laws and regulations. Such assessments are carried out through various processes, including the risk assessment and internal control review process (GRC Assessment) and the notification process for reviewing new laws. The Compliance Monitoring Systems (CMS) further facilitate monitoring and reviewing compliance with laws and regulations.
In managing incidents of non-compliance, PTT assigns roles and responsibilities to relevant departments to collect and report such incidents to the Compliance Department. This department analyzes the causes, implements corrective actions, and improves operational processes to prevent recurrence. PTT personnel are encouraged to report incidents of non-compliance through an online channel provided by the Legal Counsel Office or via email to compliance@pttplc.com. Once incidents are reported and analyzed, they are summarized and reported, along with management guidelines, to the Governance, Risk, and Compliance Management Committee (GRCMC) and the Corporate Governance and Sustainability Committee (CGSC), respectively, on a quarterly basis.
Despite these measures, in 2023, there were no incidents of non-compliance that had significant impacts or legal liabilities on PTT.
Promotion of awareness and culture
PTT is dedicated to fostering a culture of compliance with laws and regulations among its personnel, known as Compliance Culture. This is achieved through comprehensive training initiatives aimed at providing legal knowledge and disseminating information about laws and regulations relevant to PTT's business operations. Training materials are delivered in various formats such as infographics, podcasts, emails, and through various public relations channels both within and outside the organization, reaching employees in head office areas as well as those stationed domestically and internationally. Training sessions are conducted in both classroom settings and via e-learning platforms to accommodate diverse learning preferences. Moreover, PTT emphasizes the importance of compliance from the top-down, with senior executives actively involved in promoting a Compliance Culture. This involvement includes communicating important messages and directives to employees through video clips or notable quotes, instilling a sense of responsibility and commitment to compliance throughout the organization. To gauge the effectiveness of these efforts, PTT conducts an annual GRC Survey, which includes questions related to compliance with laws and regulations. The insights derived from this survey are instrumental in shaping future development and improvement plans aimed at further enhancing the organization's Compliance Culture.
Channels/mechanisms for providing guidance on compliance or preventing legal violations
In instances of uncertainty or ambiguity concerning compliance with laws, regulations, or various internal rules within PTT, operational units are encouraged to seek guidance or initiate discussions with the Legal Counsel Office, the Compliance Department, or the pertinent legal and regulatory compliance department (2nd line) within PTT.