Issue and Stakeholder Management
The key success factor for PTTEP to be a sustainable company is its capability to build and manage relationships with stakeholders and how the Company mitigates impact from operations to community and environment where it operates. Accountable to enhance a best practice of issue and stakeholder management, PTTEP has therefore developed an Issue and Stakeholder Management System (ISMS); a tool to visualize social risks of both domestic and international operations/ projects with the same standard. It is a proactive system with the guideline on how to analyze, plan, evaluate and monitor the social Impact. Emphasizing on social risk analysis, ISMS demonstrates on how to mitigate social risks by controlling impact from operation to community probability, creating or amending existing community development programs as appropriated, and conducting a proper manner of stakeholder engagement.
The ISMS framework covers 4 key processes:
- Define: Clearly define framework in relation to Internal context and external context
- Analyze: Identify, evaluate and prioritize social risks and stakeholders
- Execute: Implement issue and stakeholder management plan
- Evaluate: Evaluate effectiveness and communicate results
The Issue and Stakeholder Management System (ISMS) applies to PTTEP and all subsidiaries (PTTEP group), throughout the lifecycle of every project which includes acquisition, seismic survey, exploration, drilling, construction, operation, modification and abandonment. Since 2015 PTTEP has deployed ISMS to all operations worldwide to help management making decision with regard to social risk and stakeholder issue. To ensure the effectiveness of deployment, External Relations staffs of each operating asset shall conduct ISMS workshop every year to revisit and revise social risk analysis and submit report to Communications and Public Affairs Division. Furthermore on a monthly basis, Communications and Public Affairs Representatives at each location shall monitor the progress and result of engagement activity and report to Corporate on a monthly basis.
An example of ISMS result is that PTTEP is able to identify a key stakeholder; a fisherman who is an opinion leader in the area, once protested against E&P industry in Songkhla. Following the mitigation plan developed under the ISMS, PTTEP approached the fisherman and worked with him to implement a CSR project. Nowadays, he becomes our partner in implementing the “Crab Hatchery Learning Center” one of the most successful CSR projects of PTTEP.
ISMS reflect PTTEP commitment to operate effectively according to business ethics with stakeholders' rights taken into account. The objectives of the ISMS include:
- To provide guidance on how to manage social impact and stakeholder's concern across PTTEP operations
- To enhance cooperation across function groups within organization in project management process
- To obtain and maintain "Social License to Operate" for domestic and international projects.
To evaluate the result, The company conducts the Stakeholders’ Engagement Survey every three years to assess the level of stakeholders’ engagement in various PTTEP project areas. The survey results are used to improve the effectiveness of social projects. The goal of effective community relations management is to raise primary stakeholders’ engagement level to “Commitment/ Support” which is the highest level of engagement identified in the survey. In 2016, the company conducted the Stakeholders’ Engagement Survey for three areas of exploration and production projects in Thailand. The areas surveyed were the Petroleum Development Support Base in Songkhla; S1 Project in Kamphaengphet, Sukhothai, and Phitsanulok; and PTTEP1 Project in Suphanburi and Nakornpathom.
In addition, it is intended that ISMS shall incorporate social risk consideration into business decision process. Through ISMS, the identified social impacts and development of appropriate mitigation plans are important factors in managing PTTEP footprint as well as community development plan to offset residual impacts, which enables PTTEP to make that the best interest for stakeholders and the company as a whole.
Stakeholder of PTTEP
According to PTTEP's Corporate Governance Policy, PTTEP categorizes stakeholders into groups to enhance involvement and communication channels by stakeholder roles as follows.
Roles of Stakeholders
PTTEP places great importance on Stakeholders. The Company ensures that they receive benefits and protection fairly as required by the law and international human rights principles. The Company provides fair treatment to workers, protects the environment and fights against corruption. PTTEP abides by business ethics to ensure that its business is conducted efficiently and ethically. The Company has improved the way in which Stakeholders can be involved in building the PTTEP's sustainable performance. PTTEP encourages people to report, with good intentions, corruption and other misconduct. Anyone who reports to and cooperates with PTTEP in good faith will be protected. This is to build confidence that PTTEP respects the rights of Stakeholders everywhere PTTEP conducts business. Stakeholders are categorized, and communication channels are provided to each group to ensure that their needs are adequately met.
PTTEP acknowledges the importance of Stakeholders and holds out the following considerations to the various groups of Stakeholders:
Customers are provided with a product and/or service in line with the specifications stated in the purchase or service contract. The product or service is of high quality, is safe and has been developed through an analytical method conducted by experts in terms of its properties, technology, and environmental impact etc.
Employees are encouraged to improve their skills and abilities to ensure the highest operational efficiency. Employees are provided with suitable and fair hiring conditions and a meritocratic system of advancement within the Company. The Company ensures a safe work environment that is in line with accepted standards. PTTEP listens to Employees' opinions, trusts them and treats them fairly as individuals and as the most important asset in its business. PTTEP supports ethical and talented Employees and respects Employees' privacy.
PTTEP complies with all relevant laws, criteria, rules and regulations in the jurisdictions in which it operates, maintains professional and cordial relationships with government agencies, is a good corporate citizen, and files tax accurately.
The Company collaborates with partners in a professional and transparent manner for its mutual best interest under joint venture contracts, conditions or requirements mutually established.
Society, Community and the Environment
PTTEP conducts itself as a good and responsible corporate citizen, and focuses on maximizing benefits from petroleum resources development in a sustainable manner. To this end, the Company complies fully with all relevant standards concerning safety, security, health and the environment to prevent any consequences that might result in the loss of lives and/or property of personnel, society, community or damage to the environment.
PTTEP treats suppliers/contractors equally and fairly in line with mutually established contracts. The Company uses clear, transparent and fair selection processes and keeps the best interests of the Company in mind at all times.
PTTEP treats lenders fairly according to the debt hierarchy and in line with the relevant contract and the law. The Company has good relationships with lenders, pays debts under obligation, complies with the stated criteria related to the maintenance of its financial status and ensures that PTTEP operates in a transparent and efficient manner in order to build confidence among lenders.
PTTEP competes fairly and treats competitors equally, respectfully and professionally. The Company respects and complies with the laws related to trade competition everywhere it does business.
Local Culture and Tradition
PTTEP shows proper respect toward local culture and traditions. Any Director, Executive, Employee, or anyone who acts on behalf of the Company must not act in any way that is disrespectful toward the local traditions and culture of any area where it does business.
PTTEP upholds and complies with human rights principles as well as principles in other areas. Overall, the Company abides by four principles i.e. human rights, labour, environment, and anti-corruption in line with the United Nations Global Compact.
Source: Good Corporate Governance and Business Ethics
Stakeholder Grievance Mechanisms Process in PTTEP
In verification and validation of our effectiveness, various grievance mechanisms are provided for stakeholders to choose at their convenience. At operation sites, stakeholders can send complain directly to the on-site community staffs, operation staffs or to the corporate route directly go to corporate level responsible for Stakeholder Engagement . There are 2 mechanisms of report:
- Incident reporting which is part of the SSHE Incident Management System. Onsite SSHE staffs and security officers are trained to be the front line to collect community complaints and log them through PTTEP's formal complaint form which is a database accessible from corporate side.
- PTTEP website provides direct and discrete channel for grievance reports under "Contact Us" web page and hotline number 66 (0) 25374000. This channel is centralized management to track and follow up with relevant functions involving in addressing the issue. We believe some complains involve Corporate Governance, Business Ethics, and Corporate Good Citizenship, together and have a centralized grievance page is to ensure multiple functions will review the concerns as appropriate. Stakeholder can also choose to send direct email to independent board of directors to ensure highest level of management has visibility to their concerns.
PTTEP operations and activities need to acquire or access to public or private land. Often, this land will be occupied or utilized in some manners. As a result, acquiring land or land use rights for a given project may cause physical and/or economic displacement e.g. loss of assets or shelters and loss of income source.
Company prime objective is to acquire land or access to land through voluntary agreement with land owners or user rather than through law enforcement. PTTEP Involuntary Resettlement Guideline has been developed to advise company to implement key activities to minimize impact and maintain relationship with stakeholder.