Sustainability

Sustainability Disclosure and Benchmarking

Sustainability

Sustainability Disclosure and Benchmarking

Sustainable Development Goals

About PTT

PTT Public Company Limited (PTT), a leading energy and petrochemical conglomerate, operates with a core mission to ensure national energy security, uphold balanced stakeholder interests through transparent and ethical management, and strategically invest across the entire energy value chain, from upstream to downstream. This commitment extends to developing and diversifying businesses in alignment with forward-looking visions for future energy and beyond. Presently, PTT has ceased investment in coal-related ventures to advance the Targets of achieving Carbon Neutrality by 2040 and Net Zero Emissions by 2050.

Summary of PTT's business includes operations managed directly by PTT, encompassing natural gas, natural gas pipeline, international trade, new ventures, and infrastructure businesses. Additionally, investments are made through subsidiaries and/or joint ventures, covering petroleum exploration and production, liquefied natural gas, petrochemicals and refining, oil retail, power and utilities, and service sectors. For more detailed information, visit the "PTT Public Company Limited: Get to know PTT" section on pttplc.com.

Company Profile

Sustainability Disclosure

Scope of reporting

Presently, PTT publicly discloses sustainability data under Part 3: Driving Sustainable Business in Section 1: Business Operations and Performance in the "Annual Information Disclosure/Annual Report 2023 (Form 56-1 One Report)" and shares comprehensive information on its website, spanning sustainability performance from January 1st to December 31st, 2023, across all business groups. These encompass Upstream Petroleum and Natural Gas Business Group, Downstream Petroleum Business Group, Emerging Businesses and Infrastructure Business Group, as well as Support Functions. The disclosed information encapsulates the operational achievements of entities within the PTT Group, including but not limited to PTT Exploration and Production Public Company Limited (PTTEP), PTT Global Chemical Public Company Limited (GC), Thai Oil Public Company Limited (TOP), IRPC Public Company Limited (IRPC), Global Power Synergy Public Company Limited (GPSC), and PTT Oil and Retail Business Public Company Limited (OR), among others. The operational scope aligns with the 3P Decarbonization Pathway and encompasses both PTT and its flagship companies, including PTTEP, GC, TOP, IRPC, GPSC, and OR. Additionally, it addresses direct and indirect greenhouse gas emissions, covering companies where PTT holds a direct shareholding of over 20% or exercises a controlling interest of 100%, as well as joint ventures with equal major shareholding. This reporting framework adheres to sustainability reporting standards at national and global levels, aiming to convey essential insights and performance outcomes as follows:

Guidebook for compiling the Annual Information Disclosure/Annual Report in Form 56-1 One Report issued by the Securities and Exchange Commission or SET.
Reporting on sustainability in compliance with the Global Reporting Initiative (GRI) Sustainability Reporting Standards, aligning with current indicators (GRI Standards 2021: Universal Standards and Topic Standards) and the Sector Standard Project for Oil and Gas (GRI 11: Oil and Gas Sector 2021), ensuring comprehensive content adherence to the "Reporting in accordance with the GRI Standard."
Sustainability reporting interlinked with the International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards (S) of the International Sustainability Standards Board (ISSB), encompassing IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information, which correlates with GRI Standards, reporting on organizational value creation according to the Integrated Reporting (IR) framework of the International Integrated Reporting Council (IIRC) and Sustainability Accounting Standards Board (SASB), and IFRS S2 Climate-related Disclosures, which relates to reporting on climate change impacts using the Task Force on Climate-related Financial Disclosures (TCFD) recommendations.
Reporting progress on operations based on the United Nations Global Compact (UNGC) 10 Principles at an advanced level, encompassing human rights, labor, environment, and anti-corruption issues, in alignment with stakeholder interests. For further details, please refer to the Sustainability Network section.
Reporting on climate change performance, leveraging the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
Reporting progress on operations supporting the Sustainable Development Goals (SDGs) of the United Nations.
Reporting sustainable value creation according to the core metrics outlined in "Measuring Stakeholder Capitalism: Towards Common Metrics and Consistent Reporting of Sustainable Value Creation" by the World Economic Forum (WEF).
Assessing performance on human rights issues through the Corporate Human Rights Benchmark (CHRB).

Remark: There have been no significant changes in the business units and supply chains in 2023.

Form 56-1 One Report

For further sustainability details regarding the economic, social, and environmental aspects can be found here. Additionally, comprehensive insights into the financial management of the Company can be found in the Financial Report, along with operational performance data of PTT Public Company Limited in the 2023 Annual Information Disclosure/Annual Report (Form 56-1 One Report), published annually. Furthermore, PTT conducts surveys to collect feedback from readers on Part 3: Driving Sustainable Business under Section 1: Business Operations and Performance in the Form 56-1 One Report.


PTT Sustainability Performance Data 2023		Presenting data in alignment with GRI, UN SDGs, UNGC, WEF, SASB, IFRS, TCFD, and CHRB Context Index.

In addition to surveying readers' opinions as mentioned above, PTT arranged to receive feedback and suggestions from stakeholders regarding its sustainability efforts and disclosure of sustainability information in the form of the 56-1 One Report to assess the effectiveness and impact of information disclosure and improve PTT's disclosure practices for the fiscal year 2023. It was found that there were no issues related to information disclosure. Summaries of stakeholders' feedback on each aspect are as follows:

Sustainability Data Assurance

The sustainability information across all three dimensions - environmental, social, and governance - disclosed in Part 3: Driving Sustainable Business under Section 1: Business Operations and Performance in the “Annual Information Disclosure/Annual Report 2023 (Form 56-1 One Report)”, as well as on the website www.pttplc.com under the sustainability section, has received approval from senior management of relevant departments and endorsement from the PTT Board of Directors. Furthermore, it has undergone continuous external independent verification for the 13th consecutive year to ensure stakeholders' confidence in its accuracy, completeness, reliability, and alignment with business operations. More details can be found at Assurance Statement.

Sustainability Performance Assessment

PTT has undergone sustainability performance assessments by various investors and institutions, both on a national and international level, yielding significant assessment outcomes as follows:

Benchmarking/ Rating	Results of 2023
	PTT has once again been recognized for its sustainable practices, being chosen as a member of the DJSI in both the World Index and the Emerging Market Index for the 12 consecutive year. Furthermore, it maintains its position as a frontrunner in the Oil & Gas Upstream & Integrated (OGX) sector, highlighting its enduring commitment to sustainable development. This acknowledgment underscores PTT's strategic alignment with the changing global landscape, as well as its dedication to social and environmental responsibility.
	PTT has received an ESG Rating of AA, up from A, in the Integrated Oil and Gas industry. This assesses the company's ability to manage environmental, social, and governance risks to instill investor confidence that the company operates in accordance with ethical, social, and environmental principles.
	PTT has passed the evaluation criteria of the FTSE and has been selected as a member of the FTSE4Good Emerging Index and FTSE4Good ASEAN 5 Index for the eighth consecutive year since 2015.
	PTT has received a "B" rating (Management Level) in managing climate change and water security under the assessment framework of the globally respected sustainability assessment institution, Carbon Disclosure Project (CDP), for the fiscal year 2023.
	PTT has been awarded the SET ESG Ratings for 2023, achieving the highest AAA rating. This accomplishment highlights the Company's steadfast dedication to sustainable business practices, showcasing its ongoing commitment to enhancing sustainability initiatives. Moreover, this rating serves as valuable information for investors considering investments in PTT, reinforcing confidence in the Company's sustainable operations.
	PTT has been honored with the 2023 SET Awards ceremony, presented by the Stock Exchange of Thailand in collaboration with a leading financial magazine. The accolades include 3 prestigious awards. The Sustainability Awards of Honor, the highest accolade in sustainability, have been conferred upon PTT for the 3 consecutive year. This recognition underscores PTT's steadfast commitment to navigating through various challenges and leading the business towards a low-carbon society, aiming for Carbon Neutrality by 2040 and Net Zero Emissions by 2050, in line with the 3P approach (Pursuit of Lower Emissions, Portfolio Transformation, and Partnership with Nature and Society). PTT has surpassed Thailand's goals by setting clear strategic directions and business plans for transforming its business model, including investments in renewable energy, electric vehicle infrastructure, and ventures beyond energy. These efforts demonstrate a genuine commitment to driving the business towards sustainability. The prestigious Innovative Company Awards of Honor, conferred for 3 consecutive years as the Best Innovative Company, underscore PTT's innovation prowess, notably through the development of the "PTT SCR Catalyst". This Selective Catalytic Reduction (SCR) catalyst, devised and manufactured to mitigate nitrogen oxide (NOX) emissions from industrial combustion exhausts, stands as a testament to innovation, having secured three patents. It serves as a pivotal force in diminishing environmental impacts on society and communities, reducing dependence on foreign SCR technology, and fostering opportunities for SCR-related ventures in line with future business trajectories. This sustainable growth strategy epitomizes PTT's unwavering commitment to social responsibility, community welfare, and environmental stewardship. Presently, the PTT SCR Catalyst is actively employed at PTT's natural gas separation facilities for over two years and is poised for commercial expansion to target groups within and beyond the PTT umbrella. Outstanding Listed Company in Investor Relations Award
	PTT has been honored with the Role Model Organization Award on Human Rights 2023, presented by the Rights and Liberties Protection Department, Ministry of Justice. This esteemed recognition, received for the 3 consecutive year, underscores the Company's dedication to conducting business under robust corporate governance, while also adhering to global human rights principles, promoting equality, and fostering inclusivity throughout its operations. This commitment propels the organization forward, continually and sustainably creating shared value for all stakeholders.
	PTT has been honored with the Climate Action Leading Organization (CALO) Awards at the Thailand Climate Action Conference 2023 (TCAC 2023). Additionally, it has received the Thailand Tourism Awards for the 14 consecutive year in 2023, organized by the Public Organization for Thailand Greenhouse Gas Management (Public Organization). These accolades underscore PTT's unwavering commitment to conducting business responsibly, aiming for Carbon Neutrality by 2040 and Net Zero Emissions by 2050 through its comprehensive 3P strategy. This strategy includes Pursuit of Lower Emissions, actively driving projects to reduce greenhouse gas emissions within the PTT Group; Portfolio Transformation, reallocating investments towards future energy businesses and ventures beyond energy; and Partnership with Nature and Society, collaborating with the government and communities to reforest both land and mangrove areas, thereby increasing green spaces and naturally sequestering carbon dioxide. PTT remains dedicated to advancing its business while simultaneously caring for all stakeholders, thus propelling Thailand towards a low-carbon society with steadfast and sustainable progress.