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 and external context which may impact the objective
- Analyze: Identify, evaluate and prioritize social risks and stakeholders in order to prepare an issue and stakeholder management plan
- Execute: Implement issue and stakeholder management plan and monitor progress
- Evaluate: Evaluate the effectiveness and communicate results to stakeholders
ISMS is applied throughout the lifecycle of every project which includes exploration, production and abandonment. Since 2015 PTTEP has deployed ISMS to all operations worldwide to facilitate the process of decision making with regard to social risk and stakeholder issues. To ensure the effective deployment, External Relations staff of each operating asset shall conduct ISMS workshop every year to revisit social risk analysis and submit a report. Furthermore on a monthly basis, External Relations Officers at each location shall monitor the progress and result of engagement activity and report to Corporate.
A good sample of social risk identification by ISMS involves a concern of local fishermen group who is an opinion leader in the area which might impact PTTEP operations. Based on the mitigation plan developed under ISMS, PTTEP works with the group to initiate and implement “Crab Hatchery Learning Center”, a social responsibility project. At present, this fishermen group becomes our CSR partner in replicating the Learning Center to other locations in PTTEP operating areas. This project is one of our most successful CSR projects which not only creates economic value for fishermen but also contributes to environmental conservation at the operations area of our Petroleum Supply Base in Songkhla.
To evaluate the success of issue and stakeholders management, PTTEP conducts the stakeholder commitment survey to assess the level of commitment at operating areas. The survey result is used to develop an improvement plan to increase commitment level to “Support” level. In 2016 the Company conducts he Stakeholder Commitment Survey at the Petroleum Development Support Base in Songkhla province; S1 Project in Kamphaengphet, Sukhothai and Phitsanulok provinces; and PTTEP1 Project in Suphanburi and Nakornpathom provinces. In 2018, more surveys are carried out at Sinphuhorm Project in Udonthani and Khon Kaen provices, Zawtika Project in Myanmar and at LKC Free Clinic in Indonesia.
In addition, it is intended that ISMS shall incorporate social risk consideration into the business decision process. Through ISMS, the identification of social impacts shall result in the development of appropriate mitigation plan and social development plan, which enables PTTEP to act in the best interest for stakeholders and the company as a whole.