|Sustainable Development Goals|
Opportunities and Challenges
PTT’s role as Thailand’s national energy company and mission is to cater to stakeholder expectations, have responsibility towards society, community, and the environment, as well as ameliorating the country’s competitiveness. Operating a business sustainably presents both an opportunity and a challenge to create balance between the stakeholders involved. Furthermore, during 2020, the world was affected by the COVID-19 outbreak, an economic slowdown, the changing energy needs and moreover, climate change. Collaboration with sustainability networks is a crucial element in supporting both PTT and its networks in pursuit of joint opportunities that will rise from such challenges to become sustainable business opportunities. Whether it is a project-level cooperation, knowledge transfer, and the proposal of relevant guidelines or policies etc., this is to prompt the operations of the network organizations to be ready to support and respond to Sustainable Development Goals (SDGs) together.
PTT recognizes the importance of creating a sustainability network that is not limited to PTT Group subsidiaries. To become an organization of excellence, PTT joined various associations both internationally and nationally to jointly drive operations to achieve Sustainable Development Goals (SDGs), including knowledge management, technology development, energy innovation for the environment, corporate social responsibility, corporate governance, and mutual development of all stakeholders, which requires further cooperation from many sectors.
SUSTAINABILITY NETWORK COOPERATION AT THE NATIONAL LEVELGRI 102-12
PTT is a member of various networks such as the Petroleum Institute of Thailand, Federation of Thai Industries (F.T.I.), Thailand Business Council for Sustainable Development (TBCSD), Thai Listed Companies Association, Green World Foundation, Corporate Social Responsibility Institute Club, Thai Environment Institute (TEI), Oil Industry Environmental Safety Group Association, Thai Institute of Directors (IOD), Global Compact Network Thailand (GCNT), etc. In 2020, PTT has joined forces with the Securities and Exchange Commission (SEC) and 32 listed companies on Vibhavadi Road within the Thailand Responsible Business Network (TRBN) to combine efforts for the “Zero Waste Vibhavadi Road” project by adhering to the 3Rs “Reduce Reuse Recycle” concept. In 2020, the project was able to reduce landfill waste by 526 tons or, in terms of carbon dioxide equivalent, 894 tons.
From the cooperation with multiple sustainability network at the national level, PTT has succeeded in building cooperation in developing the Eastern Economic Corridor of Innovation (EECi) at Wang Chan Valley, Wang Chan District, Rayong Province. The area is a complete innovation ecosystem providing advanced research and development center to drive innovation in accordance to the Thailand 4.0 policy. This project is supported by the Thailand Board of Investment (BOI) and is announced as the special economic zone.
PTT has collaborated with various sectors, private and public, to develop EECi space. This comprises collaboration with Electricity Generating Authority of Thailand (EGAT), National Science and Technology Development Agency (NSTDA), and pilot projects for effective electricity management system. The pilot project commenced in EECi areas, in partnership with Synchrotron Light Research Institute to create ‘Synchroton Center.’ The center would have synchroton generating machine, whose power level is at 3 Gev. The work can be further utilized in fundamental scientific research, atomic and molecular property analysis. The work is applicable for medicinal science and for industrial development.
PTT has also signed an MOI with multiple partner companies, such as WHA Utility and Power Plc. (WHAUP). The collaborative efforts focus on treating wastewater management with modern and green technology. Used water is recycled for plant gardening in the projects, supporting users in Wang Chan Valley effectively. Furthermore, the space serves as an exhibition \on wastewater treatment for those who are interested to study. It supports industries for human capital development and education, as well as seeking opportunities for research and innovation development partnerships. Such partnerships may lead to business collaborations. Furthermore, there are also feasibility studies for establishment of Crotonville Management School and PTT-GE Solution Center, in collaboration with GE Company of Thailand.
Regarding EECi overview, by the end of 2020, the construction project progress is at more than 95% and expected to be completed by early 2021 in order to support the opening of services for partners and interested parties in the third quarter of 2021.
SUSTAINABLE NETWORK AND THE INTERNATIONAL LEVEL
Since 2005, PTT has joined the World Business Council for Sustainable Development (WBCSD), a network of CEOs from companies around the world to create a sustainable future for business, society, and the environment. In addition, PTT supports the UN Global Compact, which covers human rights, labor standards, environmental conservation, and anti-corruption. PTT also promotes companies in the PTT Group to have good corporate governance, be transparent, and have responsibility in the country in which PTT Group operates, with the support of the Extractive Industries Transparency Initiative (EITI) principle. This is consistent with UNGC 10 principles that PTT adheres to.
UN GLOBAL COMPACT (UNGC)
PTT has joined the UN Global Compact (UNCG) since 2012 to support the Principles of the UN Global Compact on human rights, labor, environment and anti-corruption. As an active participant, PTT submits the Communication on Progress (COP) report or the Corporate Sustainability Report to UNGC annually to disclose the implementation of sustainable actions.
PTT Group manages sustainability in alignment with PTT Group’s Sustainability Management This was achieved through the implementation of PTT Group’s sustainability management policy regarding governance. It also proceeds according to PTT Group’s sustainability management framework to support 10 principles of UN Global Compact.
10 PRINCIPLES OF UNGC
Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights.
Principle 2: Businesses should make sure that they are not complicit in human rights abuses.
Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining.
Principle 4: Businesses should uphold the elimination of all forms of forced and compulsory labor.
Principle 5: Businesses should uphold the effective abolition of child labor.
Principle 6: Businesses should uphold the elimination of discrimination in respect of employment and occupation.
Principle 7: Businesses should support a precautionary approach to environmental challenges.
Principle 8: Businesses should undertake initiatives to promote greater environmental responsibility.
Principle 9: Businesses should encourage the development and diffusion of environmentally friendly technologies.
Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.
COMMUNICATION ON PROGRESS (COP) 2020
|1||The COP describes mainstreaming into corporate functions and business units.|
|2||The COP describes value chain implementation.|
|3||The COP describes robust commitment, strategies or policies in the area of human rights.|
|4||The COP describes effective management systems to integrate the human rights principles.|
|5||The COP describes effective monitoring and evaluation mechanisms of human rights integration.|
|6||The COP describes robust commitment, strategies or policies in the area of labor.|
|7||The COP describes effective management systems to integrate the labor principles.|
|8||The COP describes effective monitoring and evaluation mechanisms of labor principles integration.|
|9||The COP describes robust commitment, strategies or policies in the area of environmental stewardship.|
|10||The COP describes effective management systems to integrate the environmental principles.|
|11||The COP describes effective monitoring and evaluation mechanisms for environmental stewardship.|
|12||The COP describes robust commitment, strategies or policies in the area of anti-corruption.|
|13||The COP describes effective management systems to integrate the anti-corruption principles.|
|14||The COP describes effective monitoring and evaluation mechanisms for the integration of anti-corruption.|
|15||The COP describes core business contributions to UN goals and issues.||
|16||The COP describes strategic social investments and philanthropy.|
|17||The COP describes advocacy and public policy engagement.||
|18||The COP describes partnership and collective action.||
|19||The COP describes CEO commitment and leadership.|
|20||The COP describes Board adoption and oversight.|
|21||The COP describes stakeholder engagement.|
PTT’s UNGC Communication on Progress 2020
PTT’S CONTRIBUTION TO ASSOCIATIONS AND OTHER SPENDINGGRI102-13, GRI102-16
|Association||Type||Contribution Amount (Baht)|
|The Federation of Thai Industries (F.T.I.)||Trade Association||-||241,820||241,820||370,220|
|The Thai Chamber of Commerce||Trade Association||24,610||24,610||24,610||-|
|World Business Council for Sustainable Development (WBCSD)||Others||2,683,264||2,671,976||2,484,928||2,733,232|
|Petroleum Institute of Thailand (PTIT)||Others||3,790,557||3,946,382||4,263,128||3,644,500|
|Thai Institute of Directors (IOD)||Others||2,140,000||2,461,000||1,605,000||535,000|
|Thai Listed Companies Association (Thai LCA)||Others||-||7,490||-||-|
|World Economic Forum (WEF)||Trade Association||6,495,660||6,495,660||6,495,660||6,495,660|
|Thailand Management Association (TMA)||Others||-||-||2,000,000||2,000,000|
|Thai Business Council for Sustainable Development (TBCSD) and Thailand Environmental Institute (TEI)||Others||500,000||-||250,000||250,000|
|Thai-UK Business Leadership Council (TUBLC)||Trade Association||100,000||-||-||-|
|UN Global Compact (UNGC)||Others||356,900||676,854||609,164||620,794|
|Issue or Topic||Corporate Position||Description of Position/ Engagement||Total Spend in 2020 (Baht)|
|Supporting the Constitutionally-mandated 20-Year National Strategy of Thailand in terms of establishing the infrastructures in the Eastern Economic Corridor of Innovation (EECi) in response to PTT New S-Curve Direction towards Innovation.||Support||Since Thailand has planned to develop Eastern Economic Corridor (EEC) to become a business hub, the innovation ecosystem zone was proposed by EEC Policy committee, chaired by Prime Minister, resulting in “Eastern Economic Corridor of Innovation (EECi)”.
Accordingly, PTT provide representatives to support and collaborate with FTI and the Thai Chamber of Commerce, which play important roles within EEC Committee. Under such supports, following significant issues has been endorsed.
As a result, PTT became responsible in laying down fundamental infrastructure and developing areas which cover about 3000 rai at Wang Chan Valley, Rayong Province. Several supporting infrastructures were already established, namely KVIS, VISTEC, and Wangchan Reforestation Project.
In 2019, to explore innovation and ecosystem in EECi, PTT extended collaboration with variety of government agencies. Among them was the Synchrotron Light Research Institute to establish Synchrotron Radiation Facility which will provide research and development of fundamental science, medical science and industrial development research. In addition, PTT also jointly collaborated with Electricity Generating Authority of Thailand and National Science and Technology Development Agency to develop Energy Management System and Demand Response program for the area to provide a pilot area of energy innovation. PTT has also signed MOU with various professional partners to establish human resources development and eco-infrastructure project namely, PTT-GE Solution Center and sustainable wastewater treatment by PTT and WHA Utilities & Power Public Company Limited (WHAUP). The construction project completed more than 95% and plan to service in Q3 of 2021.
|Supporting public policies, establishing industry standards/ best practices/Methodologies and advocating on draft regulations of public hearing related to exploration & production, refining & petrochemical process, logistics & marketing, Material issues for Oil & Gas sector: Climate action, etc. by collaborating with independent institution/organization such as “The Federation of Thai industries (F.T.I)”, “Petroleum Institute of Thailand (PTIT)”, Thailand Greenhouse Gas Management Organization (Public Organization) (TGO) and local sustainability network such as Thailand Responsible Business Network (TRBN) and Thailand Business Council for Sustainable Development (TBCSD).||Support||PTT supports and collaborates with “The Federation of Thai industries (F.T.I)” and “Petroleum Institute of Thailand (PTIT)” in both executive level and task force level.
PTT executives are members in the Council of Trustees that consist of highly qualified individuals from different sectors including the government, the industry and the academia.
In task force level, PTT Group representatives share best practices to establish public policies, industry standards and propose position for new draft regulations public hearing towards PTIT and F.T.I.
In 2020, PTT supported the Draft Climate Change Act by proposing greenhouse gas (GHG) report system on one platform to avoid double counting and submitted a white paper: Carbon Pricing Instruments Suggestion for Thailand.
PTT also collaborated with TGO and signed MOU to promote climate action aligned with National target. PTT supported developing Thailand Voluntary Emissions Reduction Methodology: Switching from fossil Fuel to Biofuels.
Besides, PTT plans to submit the reforestation projects for the Low Emission Support Scheme (organized by TGO) to contribute to the national GHG sequestration.