SSHE Management Framework

The SSHE management framework at PTT outlines the approach for managing Security, Safety, Occupational Health, and Environment (SSHE). It aims to communicate the values and principles articulated in PTT Group's Quality, Security, Safety, Occupational Health, and Environment policies from the corporate level to practical implementation across the organization, including its business groups, business areas, and affiliated companies. The framework consists of five key components, as illustrated in the diagram, which include:

• PTT Group Quality, Security, Safety, Health, and Environment Policy
• QSHE Targets and Strategy
• PTT SSHE management systems
• Corporate Manuals,  Procedures, Work Instructions and Supporting documents
• Business Group/Business Areas Manuals,  Procedures, Work Instructions and Supporting documents

Quality, Security, Safety, Health, and Environment Policy (QSHE Policy)

PTT has established the Quality, Security, Safety, Occupational Health, and Environment (QSHE) policy for the PTT Group to demonstrate the organization’s commitment to prioritizing actions, planning, setting goals, controlling processes, maintaining performance, improving productivity, and continuously enhancing products, services, and processes. This policy is designed to drive operational excellence, minimize the negative impacts of operations, foster opportunities for improvement, and support sustainable growth alongside Thai society. It also positions PTT to become a leading global company that operates responsibly toward its stakeholders, society, and the environment.
QSHE policy serves as the framework for managing QSHE across PTT and its subsidiaries, ensuring alignment with a unified direction throughout the organization. The policy has been reviewed and signed by the Chief Executive Officer and President and the PTT Board of Directors, with a clear emphasis on the following principles:

• The policy applies to all employees and contractors across the entire PTT supply chain and the PTT Group. It mandates compliance with applicable laws, regulations, organizational standards, international standards, and relevant commitments.
• The policy establishes a framework for setting both long-term and annual QSHE operational goals. These goals guide the creation of action plans and performance indicators at the organizational level, allowing PTT to evaluate the effectiveness of management at all levels.
• PTT is committed to proactively managing risks to prevent losses related to life, property, production processes, and logistics. This also includes fostering a healthy and safe working environment for employees, contractors, and all stakeholders.
• The policy emphasizes a serious commitment to managing environmental risks, focusing on the protection, prevention, and reduction of environmental impacts.
• PTT will ensure transparent communication of performance results and effectiveness to stakeholders, fostering understanding and raising awareness. It will also actively listen to stakeholders’ needs and expectations, providing opportunities for employees and contractors to participate in feedback and improvement processes.

Moreover, PTT is committed to continuously reviewing and enhancing its QSHE management approach. The policy mandates an annual review and revisit of the policy details, including QSHE operational targets, and incorporates processes for analyzing and prioritizing relevant QSHE issues. Employees, including those involved in quality, security, safety, occupational health, and environmental management at the business area level (QSHE Business Area: QSHE BA), are engaged in the review process.

PTT Group’s Quality, Security, Safety, Occupational Health, and Environment (QSHE) Policy

QSHE Governance Structure

PTT has established mechanisms for overseeing security, safety, occupational health, and environmental management. This includes the policies, targets, and management measures from the corporate level to implementation throughout the organization. There are two levels of responsible units, and each business unit includes manuals, procedures, and supporting documents as specified.

• Corporate level includes the Executive Vice President, Policy and Operational Excellence Management is responsible for overseeing the establishment of policies, strategies, targets, manuals, procedures, and measures/ projects for managing and supporting QSHE and Operational Excellence at the organizational level.
• Operational level includes the QSHE units of the Gas Separation Plant, the Pipeline Operations Division, Innovation Institute Division, the Natural Gas for Vehicles Division, and the QSHE Corporate responsible for driving, promoting, providing consultation, and monitoring result according to the targets, plans, and indicators."

The progress of performances against targets and KPIs are reported quarterly to the committees of governance structure both management and board levels. Furthermore, performance and progress are communicated transparently to stakeholders to ensure clear understanding and awareness, while also addressing their needs and expectations. Opportunities are provided for employees and contractors to contribute suggestions for improvement, which are then reviewed and incorporated to continuously enhance management practices.

QSHE Governance Structure

Long-Term and Annual  Security, Safety, Health, and Environment (SSHE) Targets

PTT has established QSHE targets, which are approved by the Chief Executive Officer and President, in alignment with PTT's Sustainability Management Master Plan. These targets are developed through a comprehensive analysis of both internal and external factors that could impact the Company’s operations. The performance indicators are designed to reflect the organization’s performance in terms of management competency, compliance with relevant standards, and adherence to international best practices. Each business unit is responsible for reviewing and setting goals that align with the organization’s overall strategy and context.

The long-term QSHE operational goals are reviewed every 5 years, while the annual QSHE operational goals are reviewed annually alongside the policy.

Annual Security, Safety, Health, and Environment (SSHE) Targets

Long-Term Security, Safety, Health, and Environment (SSHE) Targets

PTT Security, Safety, Occupational Health, and Environment (SSHE) Management System

PTT operates under the PTT Integrated Management System (PIMS), which covers the management of Security, Safety, Occupational Health, and Environment (SSHE). This system is designed to mitigate SSHE risks in line with PTT's policies and ensure the achievement of established operational goals. For companies within the PTT Group, governance is guided by the PTT Group Way of Conduct.

The SSHE management system is regularly reviewed and updated to remain aligned with Thai laws, international standards, and best practices, including ISO standards, GRI, WBCSD, and IPIECA. It also incorporates the organization’s risk context and factors, ensuring ongoing adaptation. Additionally, the system is integrated with other organizational management systems to enhance implementation efficiency.

Furthermore, PTT’s key operational areas, such as natural gas separation, natural gas tranmission system, natural gas for vehicle (NGV) mother, daughter and refueling stations, PTT’s Head Office, and PTT Innovation Institute, are certified according to international ISO standards, including ISO 45001, ISO 14001, and others. These certifications are provided by the Management System Certification Institute (Thailand) (MASCI). PTT also meets other relevant standards, such as ISO 50001, CSR-DIW (Corporate Social Responsibility), and ISO 22301 (Business Continuity Management), with certifications tailored to the expectations and needs of relevant stakeholders.

PTT is committed to systematically managing SSHE risks to ensure safe and continuous operations. Long-term action plans and goals are set to prevent and control potential losses impacting life, property, and the environment. Specific targets include achieving zero accidents resulting in work stoppages for employees and contractors, as well as zero incidents in production processes and transportation. The SSHE management process includes hazard identification, risk assessment, and the implementation of control measures to reduce risks and minimize impacts. PTT also establishes operational standards aligned with international norms, fosters a culture of safety among employees and contractors, and offers training and awareness programs. International safety engineering principles and tools are applied to prevent major incidents in production processes, transportation, and logistics. Regular safety audits and risk assessments identify potential hazards, and corrective actions are taken before incidents occur. PTT’s safety management framework encompasses essential elements such as personal safety, process safety, and transportation safety, forming the core of operational practices. These elements are continuously refined to drive ongoing improvements across the organization.

PTT is dedicated to continuously reviewing, improving, and developing its Emergency and Crisis Management system, as well as its Business Continuity Management System (BCMS). The Company conducts annual emergency and crisis management drills, alongside business continuity exercises, to ensure the organization is fully capable of handling incidents effectively and efficiently.

Safety, Occupational Health, and Environmental Management System for Large-Scale Construction Projects

For large-scale construction projects, such as natural gas pipeline transmission and natural gas separation plants, a comprehensive Environmental Impact Assessment (EIA) is conducted to evaluate the potential direct and indirect environmental and social impacts of the project. Based on the assessment, a detailed environmental action plan is developed in accordance with all relevant legal requirements. PTT oversees, monitors, and ensures that project contractors fully adhere to environmental protection and mitigation measures, as well as environmental monitoring protocols outlined in the approved EIA report. EIA monitoring reports are submitted to the relevant regulatory authorities every six months, as required by each agency. Additionally, PTT enforces stringent safety, occupational health, and environmental management standards that contractors must follow. KPIs are established, including the percentage of environmental compliance monitoring, LTA, and the TRIR. These metrics are continuously tracked and assessed to ensure consistent and effective performance.

Implementation of SSHE Policies Across Business Units and the PTT Group

To ensure the effective implementation of SSHE policies, goals, and management measures across the organization, each business unit is responsible for overseeing the execution within its operational areas and relevant departments, ensuring alignment with the SSHE management system. This includes adherence to established manuals, operational procedures, practices, and supporting documents. The QSHE units at each business area—such as the Natural Gas Separation Unit, Natural Gas Pipeline Unit, PTT Innovation Institute, and CNG Unit for vehicles, along with the QSHE unit overseeing PTT Headquarters—are tasked with promoting, advising, and monitoring progress toward the achievement of goals, plans, and performance indicators. These efforts are reported to management at the operational, departmental, and business unit levels, where regular reviews of effectiveness and efficiency take place.

For implementation within the broader PTT Group, actions will follow the PTT Group Way of Conduct, in proportion to shareholding. For companies where PTT holds 100% of the shares or has a majority stake, the Company’s SSHE policies, goals, strategies, and management standards will be adopted and tailored as appropriate. PTT emphasizes the participation of all group companies in elevating SSHE management across the organization. To facilitate this collaboration, the PTT Group QSHE Taskforce has been established to exchange knowledge, drive joint SSHE initiatives, and share best practices within the PTT Group. Initiatives such as safety culture enhancement, the development of operational manuals/guidelines, and pilot SSHE projects are among the key focus areas. The task force tracks the progress of these initiatives and actively contributes to the review and refinement of SSHE policies, goals, management standards, manuals, procedures, and supporting documents. These reviews are then presented to the Board for consideration, ensuring the effectiveness and efficiency of SSHE practices.

Performance Reporting and Data Management

PTT has developed comprehensive manuals and processes for the storage and reporting of environmental and safety performance, in line with international standards and best practices. By integrating information systems into the management process, PTT ensures that the data collection is systematic, reducing errors, and maintaining consistency across the organization. This standardized approach allows for effective comparison and analysis of performance across similar business units. The PTT Group's environmental and safety performance storage and reporting system is built on an internet-based platform, enabling easy system updates, secure data management, and seamless access for users across various operational sites. This infrastructure supports all business units, both domestically and internationally.

Auditing and Evaluation

PTT has established robust frameworks and guidelines to oversee and ensure the effective, efficient operation of SSHE management systems throughout PTT and the PTT Group. The aim is to align all operations with the group’s QSHE policies. Auditing is conducted through the following mechanisms:

• Organizations undergo audits for ISO certification, e.g., ISO 45001, ISO 14001, and ISO 22301, conducted by the Management System Certification Institute (Thailand) (MASCI).
• Audits to ensure alignment with the PTT Group's SSHE management standards.
• Regular audits to verify adherence to relevant laws and regulations.
• Assessments to confirm compliance with security management systems.
• Audits that verify the compliance of safety, occupational health, and environmental performance data.

Review of Effectiveness and Efficiency

The review of effectiveness and efficiency in relation to objectives, performance indicators, and the execution of SSHE plans—both within PTT and across the PTT Group—is conducted quarterly by the committees at both the management and PTT Board levels, in accordance with the governance framework for QSHE and Operational Excellence.

Progress on the Implementation of Security, Safety, Occupational Health, and Environmental (SSHE) Management Plans