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Stakeholder Engagement

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Sustainability

Stakeholder Engagement

Sustainable Development Goals
 





Policy and Strategic Direction for Stakeholder EngagementGRI 2-29

PTT establishes stakeholder management objectives: “To become an organization trusted by the Thai people, fostering interdependence, and leading towards a cleaner environmental society.” We strive to engage and address the needs of all stakeholder groups—government agencies, communities, investors, customers, partners, directors, and employees—equitably. Our aim is to professionally cultivate understanding and confidence in PTT's operations among stakeholders through determination, transparency, fairness, and responsiveness to needs and expectations. This involves active participation in critical issues, fostering positive relationships, and building sustainable networks.

PTT has a strategic approach towards stakeholders: 'Understanding, Engagement, Dependence'. 'Understanding' focuses on enhancing communication efficiency and effectiveness. 'Engagement' involves developing participation mechanisms and driving action by considering stakeholder perspectives across the entire supply chain. 'Dependence' emphasizes building robust networks encompassing all six stakeholder groups involved in current and future operations across PTT's domestic and international business establishments, whether managed directly or through joint venture projects.

Stakeholder Relationship Management Process

PTT's stakeholder management process adheres to international standards, drawing guidance from the principles outlined in the AA1000 Stakeholder Engagement Standard 2015 (AA1000 SES) and the stakeholder and customer focus evaluation criteria found in the State Enterprise Performance Evaluation Manual. This approach aligns with the criteria for evaluating operational processes and management enablers of state enterprises (State Enterprise Assessment Model: SE-AM), as specified by individuals with relevant roles and responsibilities. Key responsibilities within the stakeholder management framework include:

  1. At the corporate level, the Stakeholder Management Department holds responsibility for crafting stakeholder policies and strategic directives, overseeing the organization's relationship-building endeavors.
  2. At the business line level, responsible persons disseminate policy,  strategic directions, and the organization's stakeholder strategies to personnel at the department level, urging action in their respective domains, and synthesize plans to foster relationships within their business lines. They disseminate these directives to personnel at the operational level, 
  3. At the department level, designated personnel develop relationship-building plans and establish Leading KPIs and Lagging KPIs. They implement, supervise, monitor, and evaluate the effectiveness of relationship-building efforts with relevant stakeholders.

In this context, performance results will be monitored and reported at both the corporate and departmental levels. Issues observed at the corporate level will be reported quarterly through the Corporate Planning and Risk Management Committee (CPRC), PTT Management Committee (PTTMC), and Enterprise Risk Management Committee (ERMC) to facilitate feedback and discussion. Additionally, the progress in fostering relationships among business line will be reported quarterly to senior executives within those business line for acknowledgment.

Classification of PTT StakeholdersGRI 2-29

PTT stakeholders encompass individuals or entities impacted, either positively or negatively, by PTT's business operations, as well as those who have the potential to influence PTT's business activities. Spanning from the past to the present and into the future, these stakeholders can be categorized into six main groups:

  • Public Sector: Policymakers, regulators, state-owned enterprises, judicial bodies, independent organizations, legislative bodies such as the House of Representatives and the Senate, as well as international organizations.
  • Society and communities: The local community surrounding PTT operation sites, the general public, youth, academic institutions, the mass media, local politicians, and non-governmental organizations (NGOs).
  • Investors: Common shareholders, bondholders, legal entities, individual investors, securities firms, and securities analysts.
  • Customers: Business customers (B2B), consumers (B2C), and government clients (B2G).
  • Suppliers and Partners: Trading partners, suppliers, collaborative partners, and business allies.
  • Directors and Employees: PTT directors, executives, and staff members.
PTT Stakeholder Engagement Process

PTT gathers and assesses the issues, needs, expectations, and concerns of its stakeholders. This process begins with an analysis of the business value chain, encompassing the three main business groups and supporting functions within the organizational structure, totaling 15 business lines. This comprehensive approach enables the identification of stakeholders, both internal and external to the organization. Subsequently, stakeholder needs, expectations, and concerns are identified to ensure comprehensive addressing. Each operational area takes the lead in managing stakeholder groups and issues at the corporate level, utilizing this information as a guide for stakeholder engagement and issue resolution within their respective domains. Moreover, various sources of information are added to ensure thorough consideration, including:

  • Results of a stakeholder survey which conducted at least once a year
  • Materiality topics from materiality assessment to identify environmental, social and governance issues including Human rights 
  • Analysis of global practice, trends, and  directions
  • Annual business plan
  • Recommendations from the Enterprise Risk Management Committee (ERMC)

Based on the analysis of stakeholder issues, needs, expectations, and concerns, along with a thorough examination of the value chain within each business lines, a comprehensive plan for stakeholder engagement is formulated. This plan outlines clear objectives, scope, stakeholders, issues, and performance indicators, with regular progress reports provided. Quarterly stakeholder management reviews are conducted with top executives of each business line to review progress and provide recommendations for further enhancement and improvement. Additionally, a summary of key issues to be monitored at the corporate level is presented to facilitate ongoing oversight of stakeholder relationship-building efforts. Updates on the progress of stakeholder engagement activities are reported quarterly to the Corporate Planning and Risk Management Committee (CPRC), as well as the Enterprise Risk Management Committee (ERMC), both being specialized committees within the PTT Board. In 2026, ten critical organizational-level issues are identified, including: 

  1. Brand & Trust "Brand" encompasses the collective image and perception held by stakeholders towards the Company, product, or service, whereas "Trust" embodies the essence of belief, reliance, and confidence.
  2. Climate Change denotes alterations in the climate stemming from natural fluctuations or human interventions.
  3. Compliance/Transparency Compliance pertains to adhering to laws and regulations, while Transparency denotes the degree to which a business openly discloses both positive and negative information.
  4. Customer Experience entails the interaction between customers and organizations, encompassing various aspects of business relationships such as awareness creation, training support, purchasing, and service.
  5. Energy Transition involves the transformation of the energy landscape towards a new structure.
  6. Financial Performance refers to the results of financial operations.
  7. Future Business means new businesses such as Renewable Energy, Energy Storage, Electricity Value Chain, Hydrogen Technology, Life Science, AI & Robotics.
  8. Information Security & Data Privacy Information security pertains to the safeguarding of data, while Data Privacy pertains to the confidentiality of information, ensuring protection and legal compliance.
  9. Organization & Employee means organizational and employee development
  10. Safety Health & Environment means security, safety, occupational health, and the environment.

The results of the value chain analysis conducted for each operational area in 2023 are summarized as follows:

Approach for Building Relationship with StakeholdersGRI 2-29

PTT has established meticulous criteria for selecting key corporate issues to monitor. This process is informed by a comprehensive analysis that integrates data from two perspectives: a bottom-up assessment of issues across 15 business lines and a top-down evaluation from the organizational standpoint. This holistic approach, implemented in 2023, takes into account alignment with three critical factors: government policy, the organization's vision, and stakeholder expectations. At the organizational level, four primary issues are identified for monitoring: 1) Brand & Trust, 2) Climate Change, 3) Energy Transition, 4) Future Business. Plans are in place to actively engage with each of these issues. For instance, regarding climate change, PTT holds the president of executive committee member (Council Board) in the Thailand Carbon Neutral Network (TCNN). This national coalition comprises over 500 public and private organizations, spanning various sectors such as small and medium businesses, large enterprises, top universities, and local communities. The TCNN's mission is to be “part of Thailand’s frontline towards Carbon Neutrality and Net Zero status by fostering participation across all sectors to reduce greenhouse gas emissions. Moreover, PTT advocates for policy changes to the government to align the country's greenhouse gas reduction standards with international norms. In 2023, PTT stands out as one of the five organizations within the TCNN network pioneering innovations in greenhouse gas management. Additionally, it is recognized as one of the sixteen leading organizations in greenhouse gas management, earning certification from the Thailand Greenhouse Gas Management Organization (TGO).

Furthermore, PTT utilizes a range of communication channels tailored to stakeholders. News is disseminated through primary avenues including: 1) Mass Media such as television, radio, and print media, 2) Social Media platforms like Website, Facebook, Instagram, YouTube, Twitter, Line, TikTok, and PTT Insight Application, and 3) Other media such as press conferences, interviews, and academic conferences.

Key Stakeholder Engagement Performance

The specifics of 2023 stakeholder engagement result are outlined as follows: 

Stakeholder Engagement Result

Stakeholder Engagement Score


Stakeholder management effectiveness is assessed through stakeholder engagement scores, with a target set at a “Excellence Level” (≥80). In 2023, the score surpassed the target at 85, showcasing PTT's exceptional responsiveness to stakeholders.