SSHE Management Guidelines

PTT has developed a management framework for security, safety, occupational health and environment (SSHE) to reaffirm the intention expressed in PTT Group's Corporate Quality, Security, Safety, Occupational Health and Environment Policy and achieve enterprise-wide compliance in all business groups, business areas, and affiliates. The guidelines consist of 4 key components as shown in the following figure:

• PTT Group's Quality, Security, Safety, Occupational Health and Environment Policy
• Annual targets and QSHE operational strategies
• PTT Group’s SSHE Management Standard (PTT Group SSHE MS)
• Handbooks, procedures and operating guidelines as well as projects/initiatives from the central team

Quality, Security, Safety, Occupational Health, and Environment Policy (QSHE Policy)^{GRI 403-1, GRI 403-8, CSA 2.2.1, CSA 3.7.1}

PTT established a Quality, Security, Safety, Occupational Health and Environment (QSHE) Policy for the PTT Group to demonstrate its commitment to prioritizing operations, planning, goal setting, supervision and work process control, maintenance, productivity improvement, products, and services to ensure risk management and further opportunities. This is to strive for excellence and be in accordance with the Sustainable Development Goals by enriching values for stakeholders in a balanced and continuous manner and serving as a framework for QSHE management of PTT and its affiliates to achieve consistency and aligned direction. The policy has been considered and signed by the Chief Executive Officer and President and the PTT’s Board of Directors with a firm focus on the following actions.

• The policy applies to all employees and contractors throughout the supply chain of PTT and PTT Group and is in compliance with laws, organizational regulations, and corporate requirements, international standards and relevant commitments.
• Frame long-term and annual QSHE performance goals to further determine corporate plans and KPIs. Performance of the management at all levels shall be evaluated.
• Manage risks to prevent fatality-related losses, losses to property, production process and logistics while promoting health, occupational health, and decent work environment for employees, contractors and stakeholders.
• Proactively manage risks, protect, prevent and mitigate environmental impacts.
• Communicate performance results and effectiveness to stakeholders in a transparent manner to achieve understanding and awareness while also being open to expressed needs and expectations. Initiate opportunities for employees and contractors to participate and come up with feedback for further reviews and continuous improvement.

Committed to reviewing and developing QSHE management by requiring yearly review of QSHE policy, goals and plans. The QSHE Corporate unit shall review related factors and involve respective parties, e.g., the QSHE Business Area (QSHE BA), etc. in reviewing through the Screening Committee, the output of which shall be signed by the President and Chief Executive Officer 

Quality, Security, Safety, Occupational Health and Environment Policy of PTT Group

Long-term and Annual Security, Safety, Occupational Health and Environment (SSHE) Targets^GRI 403-4

PTT has defined QSHE operating targets signed by the President and Chief Executive Officer. The goals are in line with the PTT Sustainability Management Master Plan, analyzing internal and external factors that affect the Company's operations and defining corporate KPIs that reflect management competencies and compliance with international standards and practices. Each business unit shall take the targets in consideration to further work on their specific targets and to cascade to the department level to ensure synchronization based on the organizational contexts.

The long-term QSHE operating goals are reviewed every 5 years while the annual operating targets, together with policies, are reviewed on a yearly basis. 

Annual Security, Safety, Occupational Health and Environment Operating Targets (SSHE)
Long-term Security, Safety, Occupational Health and Environment Operating Targets (SSHE)

PTT Group’s Security, Safety, Occupational Health and Environment Management Standards^GRI 403-3

With respect to the management of SSHE, in order to align with the existing policies and achieve the specified operating targets, PTT has established the “PTT Group’s Security, Safety, Occupational Health and Environment Management Standards” as an important tool, namely a management framework, for all affiliates under the roof of the Company, which can be suitably applied to the specific nature of business and risks to which the business is exposed. In this regard, the standards shall be cascaded through the PTT Group Way of Conduct.

SSHE Management Standards have been reviewed and updated to reflect Thai laws, international standards and practices, e.g., ISO standards, GRI manuals and guidelines, WBCSD, IPIECA, etc., as well as the organization's context and risk factors, on an ongoing basis. It is also integrated with other management systems of the organization for effective transfer into practice. 

In addition, every major operating area of PTT, be it a natural gas separation plant, natural gas pipeline system, main/master station of the natural gas network system for vehicles, or PTT headquarters, is also certified for ISO international standards including ISO45001, ISO14001 with the Management System Certification Institute (Thailand) (MASCI) being the certification body. In addition to above, it also includes other standards such as ISO50001: Corporate Social Responsibility (CSR - DIW), ISO 22301: Business Continuity Management, etc. The Company has considered application and acquired certifications based on contexts and expectations of stakeholders. 

PTT Group’s Security, Safety, Occupational Health and Environment Management Standards

PTT focuses on management to limit risks related to security, safety, occupational health and environment to ensure systematic and continuous operations. It defined plans and long-term targets to prevent and control the extent of fatality-related losses or those against property and the environment while also determining a Zero target for lost time injuries, production process safety and transportation accidents. PTT has in place risk management processes, starting from hazard identification, risk assessment, and determination of risk control and impact mitigation measures, all of which are benchmarked against international  standards. It nurtures safety culture among employees and contractors by providing knowledge and organizing activities to promote safety awareness, as well as adopting engineering principles recognized internationally to prevent serious accidents in the production and transportation process. There are safety assessments to identify risks, hazards and corrective actions shall be taken before an actual accident occurs. Safety management systems are such as personal safety, production process safety, transportation safety, which serve as a solid foundation for enterprise-wide adoption with continuous improvement.

PTT is also committed to reviewing, improving and developing emergency and crisis management and business continuity management systems (BCMS). It arranges emergency and crisis management drills, as well as annual business continuity management, to ensure that incidents can be efficiently and effectively handled.

Policy Management for Practices in Business Units and PTT Group

In cascading the SSHE policy, goals and management measures and shaping enterprise-wide practices, each business unit shall supervise the implementation in its department, operating area, and relevant departments to ensure they are in line with the SSHE management system manual, as well as procedures and work instructions specified with the department-level QSHE unit, which directly reports to the Executive Vice President in each department; for instance, natural gas separation plant, natural gas pipeline system, PTT Innovation Institute, etc. The QSHE unit that oversees functions within the premises of PTT Headquarters is responsible for promoting, rendering advice, and following up on operations based on goals, plans, and KPIs. Results are reported to the management, whether at the area, department, or BU level for consideration and review of effectiveness and efficiency based on the specified agenda.

For the transfer into practices within the PTT Group, it shall proceed in accordance with PTT Group Way of Conduct based on the shareholding proportion. The companies of which 100% shares or major shares are held by PTT shall adopt and apply the SSHE policy, goals, strategies and management standard as deemed appropriate. In this regard, PTT focuses on involving all companies to jointly upgrade the management, thus establishing a PTT Group QSHE Taskforce to exchange knowledge and drive the implementation of SSHE projects within the PTT Group, e.g., Safety Culture Promotion Project, Operational Manual/Guideline Project, SSHE Operational Pilot Project, etc. It shall follow up on the progress of operations while also reviewing policies, goals, management standards, operational manuals, procedures/guidelines for technical parts before proposing them to the respective committee based on the supervision structure for further review of efficiency and effectiveness and approval.

Performance Data Collection and Reporting

PTT has prepared a manual and procedures for filing and reporting environmental and safety performance, which are in line with international standards and practices, using information systems as a tool to develop databases for environmental and safety performance. This is to ensure that data filing is systematic, experiences minimum errors, and sets on the same standard. Hence, it shall be most beneficial when analyzing and comparing data obtained from the same business type. In this regard, PTT Group's environmental and safety performance reporting and collection system has been developed internet-based; therefore, the system can be easily updated and secured while also supporting user access from different operational areas of the PTT Group, covering all segments, both domestic and international. 

Assessment

PTT has framed and guided the supervision, control, and monitoring of SSHE management of different functions within the roof of PTT and PTT Group to ensure effective, efficient, and consistent operations in accordance with the QSHE policy of PTT Group. The assessment guidelines are as follows:

• Audit for ISO certification and other standards conducted by external auditors, e.g., ISO45001 and ISO14001 by the Management System Certification Institute (Thailand) (MASCI)
• Assessment of compliance with security, safety, occupational health, and environmental management standards of the PTT Group.
• Legal compliance audit
• Security management system compliance audit
• Verification of safety, occupational health, and environmental performance.

Review of Operational Effectiveness and Efficiency

Review of efficiency and effectiveness based on targets, KPIs, and the implementation of the SSHE plan, which is part of sustainability management, both within PTT and the PTT Group, shall be carried out by the respective committee at both levels of the management and the PTT Board of Directors according to the specified sustainability governance structure, on a quarterly basis.

PTT Sustainability Governance Structure

Progress for the implementation of the security, occupational health, and environmental management plan