Promotion of Sustainability Network

PTT recognizes the imperative of fostering economic resilience, enhancing the quality of life for its citizens, and ensuring sustainable, balanced security across all fronts in Thailand. Achieving these goals necessitates genuine and ongoing collaboration at both national and international levels. Therefore, PTT is committed to strengthening its engagement within internal and external networks and partnerships, focusing on sustainability. These collaborations encompass various entities, including organizations, trade associations, institutions, and non-profit organizations, all committed to upholding policies on good governance, risk management, legal compliance, anti-corruption measures, and corporate governance standards. Additionally, PTT adheres to guidelines for ethical business conduct and high moral standards. Decisions regarding support or collaboration with such partners and networks undergo thorough scrutiny to ensure transparency and accountability.  

Standing Point and Sustainability Network Promotional Models  

PTT determines its standing point/participates in the sustainability networks and partnerships which covers all jurisdictions where we have operation. “Aimed at driving Thailand towards enduring low-carbon development. This commitment includes a proactive approach to addressing climate change promptly and supporting the organization's long-term goals of reducing greenhouse gas emissions. PTT aims to achieve interim Carbon Neutrality by 2040 and Net Zero Emissions by 2050, thereby contributing to efforts to limit global temperature rise to below 2 degrees Celsius.” To fulfill this commitment, PTT emphasizes the importance of sustainability network and partnership initiatives. These initiatives are primarily supported through membership fees, ensuring transparency and accountability in all engagements. PTT firmly prohibits any involvement in political lobbying or any activities that deviate from its core mission. Furthermore, PTT refrains from providing financial support or resources to political parties, organizations, or individuals with political affiliations. In addition to fulfilling tax obligations and other financial duties to the government, PTT adheres to the principles outlined in its manual of good corporate governance and upholds ethical standards and business ethics.

PTT is committed to prioritizing support for sustainability networks and partnerships with the following primary objectives:

1. Foster the development and advocacy of best practices in sustainability, human rights, and SSHE (Safety, Security, Health, and Environment) within the oil and gas industry and its associated sectors.
2. Align with Thailand's national policies and objectives, while also supporting the Sustainable Development Goals (SDGs) to advance towards a low-carbon society and attain carbon neutrality, as outlined in PTT's commitments under the Paris Agreement and the nation's goals.
   
   

The Governance of Sustainability Network Support

When evaluating decisions to engage in sustainability networks and partnerships, PTT designates the Executive Vice President of Sustainability Management to oversee the screening, provide feedback, monitor, and review the participation or membership in sustainability networks. This assessment is based on whether the objectives and activities of the network align with or diverge from PTT's stance on supporting/participating in sustainability networks and partnerships. going toward Paris Agreement for all lobby activities and trade association. The findings and member's climate policy positions and lobbying activities are their climate policy position and activities are then presented to the Board of Directors or other authorized executives for approval, as per the established annual protocol. If any network and partners are found to have objectives or activities that misalignment with the sustainability stance and intent as well as aiming for a low-carbon society to achieve net zero greenhouse gas emissions according to Paris Agreement. The company will reconsider its role in participating in various activities and discuss with networks and partners to review/improve operations with a clear time frame.  If unable to proceed The Company will cancel membership with such networks and partners.

Sustainability Network Supporting  Program 

In 2023, PTT conducted a comprehensive review of its national and international network and partnership initiatives, spanning diverse organizational structures such as corporations, trade associations, institutions, governmental bodies, and non-profit organizations, of which PTT is a member. The evaluation revealed that each initiative remains steadfast in its objectives and continues to pursue projects and activities aligned with sustainability principles and ambitions. This includes endeavors towards fostering a low-carbon society in line with PTT's commitment to achieving Net Zero Emissions as outlined in the Paris Agreement.

Collaboration with Sustainability Network and Partnerships at National and International Levels

Network/ Partnership	Level	Objectives	PTT’s Roles and Key Implementation in 2023
Federation of Thai Industries: F.T.I.	National	Facilitate the exchange of information and viewpoints among stakeholders. Foster collaboration for the advancement of the industry. Provide access to target groups, encompassing industrial operators of varying types and sizes.	PTT has joined as a member and actively participates in the Environmental Working Group for Oil Refineries.
Thai Chamber of Commerce	National	Foster trade and investment promotion while collaborating with governmental bodies to facilitate and organize trade activities. Provide insights, counsel, fact, and recommendations to the government regarding trade-related issues. Act as a liaison between businesses and governmental entities.	PTT is proud to be a member and actively participates in the committee dedicated to advancing the circular economy and environmental initiatives within the Thai Chamber of Commerce. PTT takes the lead in chairing the committee focused on organizing study tours to various companies within the PTT Group.
World Business Council for Sustainable Development: WBCSD	International	Develop guidelines and establish diverse regulations to uphold sustainability standards within the global business sector. Promote the dissemination of sustainable development practices to developing nations, with a particular emphasis on addressing climate change, environmental concerns, and societal inequalities.	PTT has become a member, with the Chief Executive Officer and President serving as an esteemed council member and senior executives acting as liaison delegates.
Petroleum Institute of Thailand: PTIT	National	Facilitate the exchange of information and knowledge within the petroleum sector. Foster collaboration in petroleum research and development initiatives. Provide access to specific target groups within the petroleum industry.	encompassing activities like drafting environmental legislation, managing volatile organic compounds, and crafting a White Paper on climate change to present to the government sector.
Thai Institute of Directors Association ( IOD )	National	Enhance skills and share knowledge regarding good corporate governance among directors. Collaborate in the collective development of good corporate governance practices and solutions to combat corruption in Thailand. Elevate operational standards to effectively manage corruption risks and enhance transparency.	PTT proudly joins as a member of the association. Enhanced disclosure of information in Form 56-1 One Report for 2022 and on the PTT website to adhere to the updated Corporate Governance Report for Thai Listed Companies (CGR) criteria, emphasizing comprehensive coverage of sustainability information.
Thai Listed Companies Association (Thai LCA)	National	Acts as an intermediary between listed companies and regulatory agencies, facilitating the exchange of pertinent professional knowledge, including regulations and guidelines specific to listed entities, and promoting sustainable business practices, among others.	PTT is an esteemed member of the Thai Listed Companies Association and actively participates in the ESG Network. Its Executive Vice President, Company Secretary, and Corporate Relations also serve as committee members in the Company Secretary Club, a distinguished organization operating under the umbrella of the Thai Listed Companies Association.
World Economic Forum (WEF)	International	Engages with national and international leaders across various sectors, including multinational oil corporations, national oil companies, and enterprises venturing into new industries, to cultivate a robust network of business collaborators.	The President and executives from PTT attended the WEF Annual Meeting 2023 to track industry trends, geopolitical shifts, and business policies supporting the transition to clean energy. Insights gained were utilized to bolster organizational strategy. Additionally, bilateral meetings with industry leaders were held to explore opportunities for new business collaborations with PTT.
Thai Business Council for Sustainable Development (TBCSD) and Thai Environmental Institute Foundation (TEI)	National	Facilitate the implementation of sustainable development policies and strategies. Foster collaborations with prominent environmental organizations and establish networks across different tiers to advance public welfare, promote sustainable development, and demonstrate social responsibility. Enhance the capabilities of government officials, private sector stakeholders, local authorities, and concerned citizens in environmental stewardship and natural resource conservation.	PTT became a member with The Chief Executive Officer and President serving as Council Member. The Executive Vice President of Sustainability Management, serving as Associate Members. Express its commitment to driving the organization towards a low-carbon and sustainable business model at the annual seminar of the TBCSD Annual Event 2022.
The United Nations Global Compact (UNGC)	International	Encourage the private sector to engage in business activities aligned with human rights principles and the United Nations Sustainable Development Goals. PTT conducts its business responsibly, supporting the Sustainable Development Goals and adhering to the ten international principles of the UN Global Compact.	PTT became a member of the UNGC. Submitted annual progress reports (Communication on Progress: CoP) or annual sustainability reports to the UN Global Compact, showcasing its sustainability performance results on an annual basis.
Global Compact Network Thailand (GCNT)	National	Enhance the leadership position in national sustainability initiatives, with a specific focus on addressing challenges related to global warming and biodiversity conservation. Expand communication channels to effectively publicize and disseminate information regarding PTT's sustainability efforts across diverse dimensions. Elevate the standards of human rights management within the business operations, aligning with international guidelines and best practices.	PTT is a founding member of the association, alongside more than 110 member organizations. Its Chief Executive Officer and President plays pivotal roles as a representative on the co-founding team, while its Senior Executive Vice President of Corporate Strategy and Sustainability serves as the vice president of the association and is a member of the executive committee. In 2022, PTT collectively announced its commitment to establishing policies and promoting sustainable and equitable utilization of biodiversity across the supply chain. This initiative aims to support the nation's goal of conserving at least 30 percent of land and sea areas by 2030. The Company actively participated in discussions at the GCNT Forum 2022: Accelerating Business Solutions to Tackle Climate & Biodiversity Challenges.
Thai Renewable Energy Association (RE100)	National	Advocate for policies to the government to spearhead Thailand's industrial shift towards utilizing 100% renewable energy (RE100). This initiative serves as a pivotal mechanism in fulfilling Thailand's greenhouse gas reduction objectives, ultimately working towards achieving the goals outlined in the Paris Agreement to limit the global average surface temperature increase to no more than 1.5 degrees Celsius by 2100. Facilitate the transition of Thailand's industrial sector towards adopting clean energy, thereby positioning Thailand as a prime investment destination within the ASEAN region. Enhance industry capabilities and bolster Thailand's competitiveness by embracing clean energy technologies and sustainable practices.	PTT serves as a founding member, with our Senior Executive Vice President of Corporate Strategy and Sustainability actively participating as a member of the association's committee.
Oil Spill Response Limited (OSRL)	International	Mitigate the risk of oil spill incidents by establishing protocols for seeking external assistance in situations beyond internal capacity. Streamline expenses associated with procuring necessary equipment for incident response preparedness. Foster knowledge exchange and personnel development initiatives aimed at preventing and mitigating oil spills collaboratively. Provide support to international emergency teams by offering essential equipment and tools for oil spill cleanup efforts.	PTT became a member, representing the PTT Group as a key member.
Oil Industry Environmental Safety Group Association (IESG)	National	Mitigate the risk of oil spill incidents by establishing protocols for seeking external assistance in situations beyond internal capacity. Streamline expenses associated with procuring necessary equipment for incident response preparedness. Foster knowledge exchange and personnel development initiatives aimed at preventing and mitigating oil spills collaboratively. Provide support to international emergency teams by offering essential equipment and tools for oil spill cleanup efforts.	PTT became a member and served in the following positions:  Executive Vice President of Sustainability Management serves as the Board of Trustees. Vice President of Safety, Security, Occupational Health, and Environment serves on the Main Committee.
Thailand Carbon Neutral Network (TCNN)	National	Champion and provide backing to diverse organizations in conducting feasibility studies and establishing operational guidelines for announcing carbon neutral targets at the corporate level. Enhance the collective advantages derived from sustainable development initiatives, particularly those aimed at reducing greenhouse gas emissions. Facilitate a knowledge-sharing platform among network organizations to enhance capabilities in managing and mitigating greenhouse gas emissions. Advocate for governmental incentives and promotional measures, including access to funding sources and other forms of support, to incentivize participation in greenhouse gas reduction efforts. Encourage the proliferation of activities and projects aimed at mitigating greenhouse gas emissions, while also emphasizing the creation of added value through certification and the exchange of carbon credits within the country.	PTT's senior executives serve as administrators of the TCNN network as follows: The Chief Executive Officer and President serves as Chairman of the Executive Committee of Carbon Neutral Thailand Network (Council Board). Executive Vice President of Sustainability Management serves as Chairman of the Thailand Carbon Neutral Network (Executive Committee). PTT became a member of the Climate Action Leading Organization (CALO) and participated in the Climate Neutral Now initiative under the Secretariat of the United Nations Framework Convention on Climate Change (UNFCCC). It is an outstanding CALO organization which has achieved measurement evaluation results and reductions at the gold level. PTT provided suggestions and opinions appropriate to the Thai context to prepare policy proposals to the government sector, supporting the reduction of greenhouse gases in the country.

The membership fees for networks and partnerships that PTT joins as a member 

In 2023, PTT allocated membership fees to five prominent organizations, including World Economic Forum (WEF), Petroleum Institute of Thailand (PTIT), World Business Council for Sustainable Development (WBCSD), United Nations Global Compact (UNGC), Thai Institute of Directors Association (IOD).

Collaboration with Energy Networks in the Country

PTT collaborates with PTT Exploration and Production Public Company Limited (PTTEP) to spearhead the development of a voluntary methodology for reducing greenhouse gas emissions, known as the Premium T-VER Methodology. This initiative focuses on projects involving the capture and storage of carbon dioxide in underground geological formations, also known as Carbon Capture and Storage (CCS). To advance this endeavor, PTT and PTTEP have drafted regulations and engaged in extensive discussions with regulatory bodies such as the Department of Mineral Fuels, Ministry of Energy, and the Thailand Greenhouse Gas Management Organization (Public Organization) (TGO). This collaborative effort aims to support Thailand's Long-Term Low Greenhouse Gas Emission Development Strategy (LT-LEDS), with CCS technology playing a pivotal role in achieving Carbon Neutrality and the nation's target of Net Zero GHG Emission.

In 2023, PTT, as a leading energy organization in Thailand, actively participated in supporting the initiatives of government agencies, including the Office of Natural Resources and Environmental Policy and Planning, the Department of Environmental Quality Promotion, and the Department of Climate Change and Environment. Additionally, PTT engaged with the Greenhouse Gas Management Organization and the Sustainability Network, particularly at the Thailand Climate Action Conference (TCAC 2023). At this conference, various stakeholders convened to share insights, exchange knowledge, and collectively drive climate change initiatives. PTT's involvement in this event facilitated the dissemination of crucial information and best practices related to climate change mitigation and adaptation. Furthermore, PTT allocated financial support totaling 3,620,000 baht to bolster the organization and promotion of climate change activities across government agencies, local communities, network partners, private sector entities, educational institutions, and the general public.

Pivotal roles in driving public policies: Eastern Economic Corridor of Innovation: (EECi)

Through active participation in the sustainability networks of esteemed institutes and organizations, PTT has successfully cultivated collaborative partnerships across various sectors, spanning both the public and private domains. Notably, PTT has played a pivotal role in establishing cooperative networks aimed at fostering innovation within the Eastern Economic Corridor of Innovation (EECi) in the Wang Chan Valley area of Wang Chan District, Rayong Province. This initiative aims to create a comprehensive innovation ecosystem, positioning the region as a hub for cutting-edge research and development. Furthermore, PTT's efforts have garnered crucial support, including endorsement for the establishment of the special economic zone city plan from the Eastern Special Development Zone Policy Committee (ESEC) and benefits support from the Board of Investment of Thailand (BOI). These partnerships have been instrumental in propelling forward this ambitious vision, with key collaborators including:

• The National Science and Technology Development Agency (NSTDA) spearheads the planning, development, and management of the Wang Chan Valley area, which includes the establishment of the Department of Innovation Center (EECi Headquarters). This initiative aims to bolster the nation's research and innovation capabilities across four key domains:
  
  • The BIOPOLIS research project focuses on industrial development within the bio-based economy.
  • The ARIPOLIS research project is dedicated to advancing research and innovation in the robotics industry, particularly in Automation and Intelligence Systems.
  • The SPACE INNOPOLIS research project aims to drive aircraft technology development and space technology, positioning the area as a center and production base.
  • The FOOD INNOPOLIS research project aims to elevate the food industry through the application of science, technology, and innovation.
• The Department of Science Service (Eng.) has established a connected and autonomous vehicle testing ground (CAV Proving Ground) to facilitate research and development in future mobility technologies (Future Mobility). This initiative aims to bolster Thailand's modern automotive industry by developing testing infrastructure that meets international standards. Additionally, the department aims to transform Wang Chan Valley into a CAV Sandbox city by utilizing the project road as a Proving Ground at the semi-public road level before conducting actual tests on external public roads.
• Global Power Synergy Public Company Limited (GPSC) is tasked with developing, designing, and managing systems for electricity production from solar energy (Renewable Energy), as well as overseeing energy planning and management in the Wang Chan Valley area to ensure efficiency.
• WHA Utilities and Power Public Company Limited (WHAUP) specializes in operating wastewater treatment facilities using modern technology while prioritizing environmental considerations. This includes the recycling of wastewater for plant irrigation within the project area, effectively supporting users in the Wang Chan Valley. Moreover, these facilities serve as a showcase for wastewater treatment technology, offering educational opportunities for interested parties in the future.
• Eastern Water Resources Development and Management Public Company Limited (Eastwater) oversees water production and services within the project area, ensuring efficient water management.
• The Office of the National Broadcasting and Telecommunications Commission (NBTC) has authorized PTT to act as the coordinator for specific regulatory areas, facilitating the use of special frequencies for innovation development and testing (Regulatory Sandbox) in the Wang Chan Valley area.
• The Civil Aviation Authority of Thailand (CAAT) governs regulations and requirements while also serving as a licensee for conducting experimental tests on aircraft. This includes the development of an area for research and development for unmanned aerial vehicles (UAV Regulatory Sandbox) or permitting drone flights for innovative research in the Wang Chan Valley area, fostering the creation of new innovations.
• PTT Exploration and Production Public Company Limited (PTTEP) has established the PTTEP Technology & Innovation Center (PTIC) to spearhead innovation research and develop technology to support the petroleum exploration and production business. The center focuses on cutting-edge fields such as artificial intelligence (AI) and robotics, serving as a hub for personnel training and learning within PTTEP.
• The Provincial Electricity Authority (PEA) collaborates on the ERC Sandbox prototype project to enhance the efficiency of the electrical system in the EECi area. The initiative begins with a pilot project in the EECi area to test the trading of clean electrical energy between organizations through the Peer-to-Peer Trading Platform of PEA.
• The Synchrotron Light Research Institute has initiated the "Synchrotron Light Generator Project" operating at an energy level of 3 GeV. This facility facilitates basic science research and enables the analysis of atomic and molecular properties for applications in medical science and industrial development, among others.
• Advanced Info Service Public Company Limited (AIS), True Corporation Public Company Limited (TRUE), and Total Access Communication Company Limited (DTAC) collaborate to support the "5G Playground" system. This platform enables experimentation and testing of innovations requiring 5G networks, such as various IoT devices and intelligent industrial systems in diverse formats.
• Aeronautical Radio of Thailand Company Limited establishes the AEROTHAI METROPLEX, a personnel development and innovation center within the Wang Chan Valley area. This center serves as a hub for advanced training, knowledge development, and continuous innovation in aviation personnel. It focuses on enhancing product development processes and systems for use in missions and expanding into the industrial sector, contributing significantly to enhancing the country's competitiveness.
• The National Institute of Emergency Medicine (NIEM) collaborates on a trial project to test helicopter flight events for emergency medicine within the Wang Chan Valley area. This initiative aims to bolster the country's health stability and provide equitable access to emergency medical services with international-standard quality. It serves as a model for emergency medical services in the Eastern Special Development Zone.
• The Defense Technology Institute (DTI) participates in developing a project to establish an ecology and innovation prototype area within the Wang Chan Valley project. The goal is to elevate the area into a model innovation city for unmanned aerial vehicles (UAVs). This initiative encompasses education, research and development, testing infrastructure, technology, and innovation, focusing on raising the standard of the UAV industry in Thailand.

PTT is currently engaged in negotiations with several partner companies to foster the development of the Wang Chan Valley area. These negotiations aim to bolster various aspects, including industry support, human development, education, and collaborative opportunities in research and innovation. The ultimate goal is to establish robust connections between businesses, fostering an environment conducive to growth and advancement.

UN Global Compact (UNGC)

Since 2012, PTT has proudly been a member of the UN Global Compact, aligning with its 10 principles covering human rights, labor, environment, and anti-corruption issues. As a member, PTT diligently submits an annual progress report, known as the Communication on Progress (COP), or an annual sustainability report to the UN Global Compact, transparently disclosing its sustainability performance results.

The PTT Group adheres to sustainability management practices that mirror those of PTT, utilizing the  PTT's Sustainability Management Policy and adhering to the guidelines outlined in the  PTT Sustainability Management Standards These standards are designed to uphold the 10 principles of the UN Global Compact across our operations.

10 principles of UN Global Compact

Human Rights

Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights.
Principle 2: make sure that they are not complicit in human rights abuses.

Labor 

Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining.
Principle 4: the elimination of all forms of forced and compulsory labor.
Principle 5: the effective abolition of child labor.
Principle 6: the elimination of discrimination in respect of employment and occupation.

Environment

Principle 7: Businesses should support a precautionary approach to environmental challenges.
Principle 8: undertake initiatives to promote greater environmental responsibility.
Principle 9: encourage the development and diffusion of environmentally friendly technologies.

Anti-corruption

Principle 10: encourage the development and diffusion of environmentally friendly technologies.