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 by PTTEP and all subsidiaries 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 making key decision 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 to Communications and Public Affairs Division. 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 example of ISMS capability to analyze and identify risk involves the case of a local group of fishermen who PTTEP was able to identify as opinion leaders in the area and furthermore identify their concerns which might impact the company. Based on the mitigation plan developed under ISMS, PTTEP approached and worked with the group of fishermen to implement a CSR project. Today, this group of fishermen has become partners in implementing the “Crab Hatchery Learning Center”, one of the most successful CSR projects which create economic value for fishermen and at the same time contributes to environmental conservation at the operations area of Petroleum Supply Base in Songkhla.
To evaluate the result, The company conducts the Stakeholder Commitment Survey every three years to assess the level of commitment 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 stakeholder commitment level to “Support” which is the highest level of engagement. In 2016 the Company has conducted the Stakeholder Commitment Survey in 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 of social impacts 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.