Achieving a steadily and sustainable business growth requires continuous developments for the business to adapt to disruptive challenges. The business also needs to build resilience by adhering to the principle of good governance, promoting the 20-year National Strategy and contributing to the United Nations Sustainable Development Goals, for the benefit of the organization and society in all sectors at all levels, from community, society and country level.
PTT operates under the Pride and Treasure of Thailand or "PTT" strategy, to build the company's pride as the nation's precious treasure. PTT strives to balance three sustainability management aspects (3P), consisting of operating business while caring for communities and societies (People), conservation of natural resources and the environment (Planet), and being the foundation for the steady and sustainable economic and social growth (Prosperity). Moreover, PTT also strives to contribute to taking care of communities, Society and Environment, while ensuring a balanced and responsive stakeholder engagement. To achieve this, PTT adheres to the principles of good governance and good corporate governance through the policy "CHANGE for Future of Thailand 4.0"
To establish the Group’s sustainability strategy, PTT Group considers internal-external factors, challenges and trends, both at international and global level. PTT Group makes the efforts to consolidate, acknowledge, and address all stakeholder groups’ needs and expectations. The input contributes to the development of corporate material issues, to be cascaded down as clear state enterprise’ plans, business group’s plans and flagship companies’ plan. The plans are thoroughly responsive to stakeholders, changes, and challenges in the future. This is apparent from 2019 strategic direction, which establish clear investment proportions for novel business forms and sustainability-enhancing businesses.
Material issues, whose achievements pertaining risks are managed through PTT’s enterprise risk management (ERM) via the Group’s vision, direction and strategic objectives. This set up ensures further development of existing controls and mitigation plans.
Eventually, all material issues are systematically managed, with responsible function owners, indicator and targets set, as well as clear response plans. Furthermore, there are monitoring and reviews of sustainability performance by PTT Group Sustainability Management Committee (GSMC), Governance, Risk and Compliance Management Committee (GRCMC) and Corporate Governance Committee (CGC), to name a few. There is transparent performance disclosure available for stakeholders through different channels, such as sustainability reports and corporate websites.
Additionally, PTT Group’s material issue management must remain in alignment and constructive to United Nation’s Sustainable Development Goals. PTT has set 7 key goals, which are Goal 7, 8, 12, 13, 14, 15 and 16. Relevant objectives, which are in focus, are as follows.
- Goal 7 - Affordable and Clean Energy
- 7.2 By 2030, increase substantially the share of renewable energy in the global energy mix
- 7.3 By 2030, double the global rate of improvement in energy efficiency
- Goal 8 - Decent Work and Economic Growth
- 8.2 Achieve higher levels of economic productivity through diversification, technological upgrading and innovation, including through a focus on high-value added and labour-intensive sectors
- 8.3 Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises, including through access to financial services
- 8.4 Improve progressively, through 2030, global resource efficiency in consumption and production and endeavour to decouple economic growth from environmental degradation, in accordance with the 10-year framework of programmes on sustainable consumption and production, with developed countries taking the lead
- 8.5 By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value
- 8.6 By 2020, substantially reduce the proportion of youth not in employment, education or training
- 8.7 Take immediate and effective measures to eradicate forced labour, end modern slavery and human trafficking and secure the prohibition and elimination of the worst forms of child labour, including recruitment and use of child soldiers, and by 2025 end child labour in all its forms
- 8.8 Protect labour rights and promote safe and secure working environments for all workers, including migrant workers, in particular women migrants, and those in precarious employment
- Goal 12 - Responsible Consumption and Production
- 12.2 By 2030, achieve the sustainable management and efficient use of natural resources
- 12.4 By 2020, achieve the environmentally sound management of chemicals and all wastes throughout their life cycle, in accordance with agreed international frameworks, and significantly reduce their release to air, water and soil in order to minimize their adverse impacts on human health and the environment
- 12.5 By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse
- Goal 13 - Climate Action
- 13.1 Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries
- Goal 14 - Life below Water
- 14.1 By 2025, prevent and significantly reduce marine pollution of all kinds, in particular from land-based activities, including marine debris and nutrient pollution
- 14.2 By 2020, sustainably manage and protect marine and coastal ecosystems to avoid significant adverse impacts, including by strengthening their resilience, and take action for their restoration in order to achieve healthy and productive oceans
- 14.3 Minimize and address the impacts of ocean acidification, including through enhanced scientific cooperation at all levels
- Goal 15 - Life on Land
- 15.1 By 2020, ensure the conservation, restoration and sustainable use of terrestrial and inland freshwater ecosystems and their services, in particular forests, wetlands, mountains and drylands, in line with obligations under international agreements
- 15.2 By 2020, promote the implementation of sustainable management of all types of forests, halt deforestation, restore degraded forests and substantially increase afforestation and reforestation globally
- 15.5 Take urgent and significant action to reduce the degradation of natural habitats, halt the loss of biodiversity and, by 2020, protect and prevent the extinction of threatened species
- Goal 16 - Peace, Justice and Strong Institutions
- 16.1 Significantly reduce all forms of violence and related death rates everywhere
- 16.2 End abuse, exploitation, trafficking and all forms of violence against and torture of children
- 16.5 Substantially reduce corruption and bribery in all their forms
- 16.6 Develop effective, accountable and transparent institutions at all levels
- 16.7 Ensure responsive, inclusive, participatory and representative decision-making at all levels
MaterialityPTT's materiality assessment process is conducted in accordance to the Global Reporting Initiative (GRI)'s Sustainability Reporting Standard and the International Integrated Reporting Council (IIRC), to identify economic, environmental, social, and stakeholders' issues that have potential impacts on the organization's business operations and significant influence in stakeholders' decision-making. The materiality assessment is undertaken annually in order to review any changes in the issues that are important to the organization and its stakeholders.
Materiality Assessment ProcessThe process includes identifying issues, prioritizing material issues, verifying the findings. Details of the process are summarized as follows:
- Issue Identification for Organization and Stakeholders:
Material sustainability issues are considered and identified in collaboration with relevant functions in the organization. Issues are selected based on alignment with corporate risks, strategic direction and sustainability management, and stakeholders' expectations.
- Issue Prioritization:
The identified issues are screened to assess their level of significance from opportunity and impact to business, stakeholder interests and impacts, including value creation for stakeholders.
- Verification and Assurance:
The PTT Group Sustainability Alignment Committee (SAC) is responsible for monitoring and verifying the report development process by reviewing results of the materiality assessment and report content, and approving the content for disclosure to ensure the report's completeness, balance, and coverage. The SAC further provides comments and suggestions on specific issues that should be reported depending on relevant stakeholder interests, such as current issues and global reporting trends. External parties are engaged to verify the materiality assessment process, stakeholder engagement process, data collection and analysis, and the organization's performance against indicators to confirm completeness, accuracy, reliability and transparency of the report. For continuous improvement, PTT takes into consideration observations and recommendations from relevant external parties to improve the quality of the report.
Materiality Assessment 2019
PTT has managed important issues through strategies and operational plans of relevant departments in a concrete manner. In 2019, the top three material issues are Climate Change Management, Sustainable Governance and Innovation and Product Stewardship. For more information, please visit the following topics.
- Human Rights Management
- Sustainable Human Resource Management
- Security, Safety and Occupational Health
- Corporate Citizenship