Sustainability

Sustainability Network

Sustainability

Sustainability Network

Management Approach 

PTT recognizes the importance of creating a sustainability network that is not limited to PTT Group subsidiaries. To become an organization of excellence, PTT joined various associations both internationally and nationally to jointly drive operations to achieve Sustainable Development Goals (SDGs), including knowledge management, technology development, energy innovation for the environment, corporate social responsibility, corporate governance, and mutual development of all stakeholders, which requires further cooperation from many sectors.


Sustainability Network Cooperation at the National Level 

PTT is a member of various networks such as the Petroleum Institute of Thailand, Federation of Thai Industries (F.T.I.), Thailand Business Council for Sustainable Development (TBCSD), Thai Listed Companies Association, Green World Foundation, Corporate Social Responsibility Institute Club, Thai Environment Institute (TEI), Oil Industry Environmental Safety Group Association, Thai Institute of Directors (IOD), Global Compact Network Thailand (GCNT), etc.

In 2019, PTT has joined forces with the Thailand Responsible Business Network (TRBN) which was a network newly found in the same year. The projection is to combine efforts between the public and private sector to drive Thailand towards sustainable growth. The pilot project is “Zero waste Vibhavadi Road”. One of the network founders, TRBN, has invited listed 32 companies on Vibhavadi road to partake in the project. For the first phase, each company, including SEC, aims to manage waste effectively through application of 3R “Reduce Reuse Recycle” or “Reduce, Reuse and Recycle.” The project commenced end of 2019, and remains active until 2020. Furthermore, TRBN continues to drive efforts regarding greenhouse gas management. The project utilizes private sector’s insights and expertise in tandem with the public sector’s efforts, in order to facilitate national-level greenhouse gas performance.

From the cooperation with multiple sustainability network at the national level, PTT has succeeded in building cooperation in developing the Eastern Economic Corridor of Innovation (EECi) at Wang Chan Valley, Wang Chan District, Rayong Province. The area is a complete innovation ecosystem providing advanced research and development center to drive innovation in accordance to the Thailand 4.0 policy. This project is supported by the Thailand Board of Investment (BOI) and is announced as the special economic zone.

PTT has collaborates with various sectors, private and public, to develop EECi space. This comprises collaboration with Electricity Generating Authority of Thailand (EGAT), National Science and Technology Development Agency (NSTDA), and pilot projects for effective electricity management system. The pilot project commenced in EECi areas, in partnership with Synchrotron Light Research Institute to create ‘Synchroton Center.’ The center would have synchroton generating machine, whose power level is at 3 Gev. The work can be further utilizes in fundamental scientific research, atomic and molecular property analysis. The work is applicable for medicinal science and for industrial development.

PTT has also signed an MOI with multiple partner companies, such as WHA Utility and Power Plc. (WHAUP). The collaborative efforts focus on treating wastewater management with modern and green technology. Used water is recycled for plant gardening in the projects, supporting users in Wang Chan Valley effectively. Furthermore, the space serves as an exhibition \on wastewater treatment for those who are interested to study. It supports industries for human capital development and education, as well as seeking opportunities for research and innovation development partnerships. Such partnerships may lead to business collaborations. Furthermore, there are also feasibility studies for establishment of Crotonville Management School and PTT-GE Solution Center, in collaboration with GE Company of Thailand.

Regarding EECi overview, currently the construction is according to plan. By end of 2019, the project progress is at 59.14%. Notably, the fundamental infrastructure and smart operation centers are expected to be completed and launched by 2020.


Sustainability Network Cooperation at the International Level 

Since 2005, PTT has joined the World Business Council for Sustainable Development (WBCSD), a network of CEOs from companies around the world to create a sustainable future for business, society and the environment. In addition, PTT supports the UN Global Compact, which covers human rights, labor standards, environmental conservation and anti-corruption. PTT also promotes companies in the PTT Group to have good corporate governance, be transparent, and have responsibility in the country in which PTT Group operates, with the support of the Extractive Industries Transparency Initiative (EITI) principle. This is consistent with UNGC 10 principles that PTT adheres to.


UN Global Compact

PTT has joined the United Nations Global Compact in 2012 to support the Principles of the Global Compact on human rights, labor, environment and anti-corruption. As an active participant, the Communication on Progress (COP) or the Corporate Sustainability Report is submitted to UNGC annually to disclose the implementation of sustainable actions.

PTT Group manages sustainability in alignment with PTT Group’s Sustainability Management. This was achieved through the implementation of PTT Group’s sustainability management policy regarding governance. It also proceeds according to PTT Group’s sustainability management framework to support 10 principles of UN Global Compact.
Management Director and President’s Commitment.


UN Global Compact 10 Principles 

Human Rights

Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights. 
Principle 2: Businesses should make sure that they are not complicit in human rights abuses.

Labor Standards 

Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining.
Principle 4: Businesses should uphold the elimination of all forms of forced and compulsory labor.
Principle 5: usinesses should uphold the effective abolition of child labor.
Principle 6: Businesses should uphold the elimination of discrimination in respect of employment and occupation.

Environment 

Principle 7: Businesses should support a precautionary approach to environmental challenges.
Principle 8: Businesses should undertake initiatives to promote greater environmental responsibility.
Principle9: Businesses should encourage the development and diffusion of environmentally friendly technologies.

Anti-Corruption 

Principle9 10: Businesses should work against corruption in all its forms, including extortion and bribery.


Communication on Progress 2019 

CriterionDescriptionPage
1 The COP describes mainstreaming into corporate functions and business units. 18-23
2 The COP describes value chain implementation. CEO message, 16-17, 28-29
3 The COP describes robust commitment, strategies or policies in the area of human rights. 41
4 The COP describes effective management systems to integrate the human rights principles. 41
5 The COP describes effective monitoring and evaluation mechanisms of human rights integration. 41
6 The COP describes robust commitment, strategies or policies in the area of labor. 41
7 The COP describes effective management systems to integrate the labor principles. 41
8 The COP describes effective monitoring and evaluation mechanisms of labor principles integration. 41
9 The COP describes robust commitment, strategies or policies in the area of environmental stewardship. 30-34, 56-62
10 The COP describes effective management systems to integrate the environmental principles. 30-34, 56-62
11 The COP describes effective monitoring and evaluation mechanisms for environmental stewardship. 33, 56-64
12 The COP describes robust commitment, strategies or policies in the area of anti-corruption. 18-20
13 The COP describes effective management systems to integrate the anti-corruption principles. 18-20
14 The COP describes effective monitoring and evaluation mechanisms for the integration of anti-corruption. 18-20
15 The COP describes core business contributions to UN goals and issues. 16-17
16 The COP describes strategic social investments and philanthropy. 42-51
17 The COP describes advocacy and public policy engagement. 16-17
18 The COP describes partnership and collective action. 16-17, 21-23, 30-31, 56-58, Web link
19 The COP describes CEO commitment and leadership. CEO message
20 The COP describes Board adoption and oversight. 18-20
21 The COP describes stakeholder engagement. 7-9, 26-27

PTT’s UNGC Communication on Progress 2019


PTT’s Membership Contribution to Associations 

AssociationTypeContribution Amount (Baht)
2016201720182019
The Federation of Thai Industries (F.T.I.) Trade Association 235,400 - 241,820 241,820
The Thai Chamber of Commerce Trade Association 24,610 24,610 24,610 24,610
International Chamber of Commerce (ICC) Trade Association 32,100 - - -
World Business Council for Sustainable Development (WBCSD) Others 2,850,824 2,683,264 2,671,976 2,484,928
Petroleum Institute of Thailand (PTIT) Others 3,984,318.53 3,790,557.11 3,946,381.8 4,263,128.15
Thai Institute of Directors (IOD) Others 7,009.35 2,140,000 2,461,000 1,605,000
Thai Listed Companies Association (Thai LCA) Others 7,490 - 7,490 -
International Energy Agency’s and Advanced Motor Fuels (IEA/AMF) Others - - - -
Asia Business Council (ABC) Others - - - -
Thai Environmental and Community Development Association (TECDA ) Others - - - -
World Economic Forum (WEF) Trade Association - - - -
Thailand Renewable Energy for Community Association (TRECA) Others - - - -
Thailand Management Association (TMA) Others 7,490 - - -
Thai Business Council for Sustainable Development (TBCSD) and Thailand Environmental Institute (TEI) Others 250,000 500,000 - 250,000
Thai-UK Business Leadership Council (TUBLC) Trade Association - 100,000 - -
UN Global Compact Others 358,000 356,900 676,854.20 609,164
Total 7,757,241.88 9,595,331.11 10,030,132 9,478,650

In 2019, the top 5 membership fees comprise of Petroleum Institute of Thailand (PTIT), World Business Council for Sustainable Development (WBCSD), Thai Institute of Directors (IOD), UN Global Compact, Thai Business Council for Sustainable Development (TBCSD). All of which are non-profit organization, foundations and trade association, to name a few. 

Issue or TopicCorporate PositionDescription of Position/ EngagementTotal Spend in 2019 (THB)
Supporting the Constitutionally-mandated 20-Year National Strategy of Thailand in terms of establishing  the infrastructures in the Eastern Economic Corridor of Innovation (EECi) in response to PTT New S-Curve Direction towards Innovation.





































Support






































Since Thailand has planned to develop Eastern Economic Corridor (EEC) to become a business hub. The innovation ecosystem zone was proposed by EEC Policy committee, chaired by Prime Minister, resulting in “Eastern Economic Corridor of Innovation (EECi)”.

Accordingly, PTT provide representatives to support and collaborate with FTI and The Thai Chamber of Commerce, which play important roles within EEC Committee. Under such supports, following significant issues has been endorsed.

  • City Plan for EECi while restricting the development to pilot-plant level (no factory allowed) to prevent environmental burden
  • BOI incentives which aim for direct foreign investment in EECi

As a result, PTT became responsible in laying down fundamental infrastructure and developing areas which cover about 3000 rai at Wang Chan Valley, Rayong Province. Several supporting infrastructures were already established, namely KVIS, VISTEC, and Wangchan Reforestation Project.

In 2019, to explore innovation and ecosystem in EECi, PTT extended collaboration with variety of government agencies. Among them was the Synchrotron Light Research Institute to establish Synchrotron Radiation Facility which will provide research and development of fundamental science, medical science and industrial development research. In addition, PTT also jointly collaborated with Electricity Generating Authority of Thailand and National Science and Technology Development Agency to develop Energy Management System and Demand Response program for the area to provide a pilot area of energy innovation. PTT has also signed MOU with various professional partners to establish human resources development and eco-infrastructure project namely, PTT-GE Solution Center and sustainable wastewater treatment by PTT and WHA Utilities & Power Public Company Limited (WHAUP). The overall construction in EECi is currently progressing according to plan, was at 59.14% completion. Construction on basic infrastructure and the Smart Operation Center will be completed by 2020.
FTI & Thai Chamber of Commerce fee 266,430 Baht

Invest for EECi (1st Phase 2019-2022) approximately 3,000 Million Baht







































Establishing public policies, industry standards, best practices and advocate on draft regulations public hearing related to exploration & production, refining & petrochemical process, logistics & marketing, etc.























Support
































PTT supports and collaborates with “The Federation of Thai industries (F.T.I)” and “Petroleum Institute of Thailand (PTIT)” in both executive level and task force level.
PTT executives are members in the Council of Trustees that consist of highly qualified individuals from different sectors including the government, the industry and the academia.
In task force level, PTT Group representatives share best practices to establish public policies, industry standards and propose position for new draft regulations public hearing towards PTIT and F.T.I.
In 2019, Proposed issues has been successfully enforced namely, “Thailand Factory Act Amendments: Factory Act (No. 2 and No. 3) B.E. 2562” which abolish delaying and obsolete requirement e.g., renewing license process. Instead, the act required industry to send their electronically self-declared report This promotes internal self-audit that has to be certified by third party and hence it contributes to more effective governance.

Draft Regulations which have been supported by PTT includes,
    • Draft regulations under Occupational and Environmental DiseasesControl act B.E. 2562, namely,
      • Draft Notification of the Ministry of Public Health, entitled " Occupational Diseases or symptom” B.E.…
      • Draft Notification of the Ministry of Public Health, entitled " Environmental Diseases or symptom” B.E.…
      • Draft Notification of the Ministry of Public Health, entitled "Reporting in case of finding Occupational and Environmental Disease confirmed or suspected” B.E.…
        In which, PTT has proposed different Disease Surveillance for industrial estate and isolated factory. Besides, PTT recommended to clarify and reduce the redundant role in case of outsource employment.
4,504,948.15 
































PTT Collaborates with Nation-level Sustainability Network namely, Thailand Responsible Business Network (TRBN) and Thailand Business Council for Sustainable Development (TBCSD) to promote a positive and sustainable impact at the national level; to conduct business responsibly and join forces to drive the country in every dimension, including economy, society and environment in compliance with Sustainable Development Goals (SDGs) for sustainable and long-term growth.




Support























In 2019, PTT collaborated with TRBN and stock-listed companies regulator namely, Securities and Exchange Commission (SEC) and Securities Exchange of Thailand (SET) promoting the “VIBHAVADI ZERO WASTE” campaign which invited 31 listed companies located along Vibhavadi Rangsit Road to explore SDGs goal 12: Responsible Consumption and Production by jointly adopting efficiently waste management from office buildings in order to minimize office waste. In this campaign, PTT shared best practices including data collection and raising employee awareness to increase recycling rate. The result from this campaign will perform in 2020.

PTT also supported TRBN’s plan to leverage Climate change management of government by providing experiences and knowledges from private sectors point of view which contributes to effective implementation altogether with proposing suitable policy for TRBN to work jointly with government sector.

For another national impact, PTT has supported TBCSD promoting PM 2.5 solutions in Thailand by promoting biofuel with higher “bio” content at reduced price based on the research that it generates less PM 2.5 during combustion, delivering greener product and benefiting ecosystem to the customers.

257,490