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Performance Summary of Material Issues

PTTEP has set short and long-term sustainability targets for economic, social, and environmental dimensions and disclosed the sustainability performance of our materiality issues. In 2022, the main achievements and progress of PTTEP's targets and work plan were as follows:

Materiality: 1. Energy Transition towards Net Zero

Target	2022 Progress
2030 5% CAGR Production Growth Maintain Proven Reserves to Production Ratio (R/P Ratio or 1P/Production) at no less than 5 years Unit cost in the top quartile among peers (≤25 USD/BOE) 20% of the Net Income from beyond E&P business Net Zero Greenhouse Gas (GHG) Emissions by 2050 with 30% GHG emissions intensity reduction by 2030 and 50% by 2040 from 2020 base year	Production growth rate at 18%, compared to 2021 Proportion of natural gas production accounted for 74% of all production in 2022 R/P Ratio or Reserves Life at 6.8 years Unit cost at 28.4 USD/BOE Became an official operator of the G1/61 and G2/61 projects in the Gulf of Thailand under the Production Sharing Contract (PSC) on April 24, 2022. Became the operator of the Yadana Project on July 20, 2022, to ensure gas supply continuity and long-term energy security for the people of both countries. Established and supported investment growth plan in renewable power business: Signed the MOU for 1) Thailand's Carbon Capture and Storage (CCS) Hub Model 2) Green Methanol Value Chain Feasibility Study 3) Green energy investment with the government of Oman EDO (Energy Development Oman). Successfully utilized Nautilus (under ROVULA business unit by ARV) for subsea pipeline inspection & repair, currently ready for service to customers covering public and private sectors in the petroleum exploration and production industry. Accumulated greenhouse gas emissions avoidance and reduction since 2013 at 8.9 million tonnes of CO₂ equivalent (from 2012 base year) Greenhouse gas emissions avoidance and reduction of 928,518 tonnes of CO₂ equivalent in 2022 (from 2020 base year) (from greenhouse gas emissions reduction project of 166,352 tonnes of CO₂ equivalent)

Target

2022 Progress

2030

5% CAGR Production Growth
Maintain Proven Reserves to Production Ratio (R/P Ratio or 1P/Production) at no less than 5 years
Unit cost in the top quartile among peers (≤25 USD/BOE)
20% of the Net Income from beyond E&P business
Net Zero Greenhouse Gas (GHG) Emissions by 2050 with 30% GHG emissions intensity reduction by 2030 and 50% by 2040 from 2020 base year

Production growth rate at 18%, compared to 2021
Proportion of natural gas production accounted for 74% of all production in 2022
R/P Ratio or Reserves Life at 6.8 years
Unit cost at 28.4 USD/BOE
Became an official operator of the G1/61 and G2/61 projects in the Gulf of Thailand under the Production Sharing Contract (PSC) on April 24, 2022.
Became the operator of the Yadana Project on July 20, 2022, to ensure gas supply continuity and long-term energy security for the people of both countries.
Established and supported investment growth plan in renewable power business:
- Signed the MOU for 1) Thailand's Carbon Capture and Storage (CCS) Hub Model 2) Green Methanol Value Chain Feasibility Study 3) Green energy investment with the government of Oman EDO (Energy Development Oman).
- Successfully utilized Nautilus (under ROVULA business unit by ARV) for subsea pipeline inspection & repair, currently ready for service to customers covering public and private sectors in the petroleum exploration and production industry.
Accumulated greenhouse gas emissions avoidance and reduction since 2013 at 8.9 million tonnes of CO₂ equivalent (from 2012 base year)
Greenhouse gas emissions avoidance and reduction of 928,518 tonnes of CO₂ equivalent in 2022 (from 2020 base year) (from greenhouse gas emissions reduction project of 166,352 tonnes of CO₂ equivalent)

Materiality: 2. Technology and Innovation

Target	2022 Progress
Develop and apply technology to support business operations according to the company's strategy in 3 areas: 1. Drive value and enhance competitiveness in E&P business; 2. Reduce greenhouse gas emissions to become a low-carbon organization; 3. Support the energy transition and new businesses. Put in place an effective intellectual property management system and register an intellectual property out of the research and technology development outcome yearly. Publish research papers in international conferences and journals and win the prize for national and international innovation award competitions every year.	Success of 4 projects in the prototype phase, 2 projects in the pilot testing phase, and 2 projects in the deployment phase Increased a return on investment at USD 23.5 million from the deployment of the successfully developed technologies in E&P business Submitted additional 17 patent applications, and 3 previous applications were granted in 2022, which made up to a total of 11 patents obtained. Published 8 technical papers in international academic conferences and received 1 award from a technology development project.

Target

2022 Progress

Develop and apply technology to support business operations according to the company's strategy in 3 areas:
1. Drive value and enhance competitiveness in E&P business;
2. Reduce greenhouse gas emissions to become a low-carbon organization;
3. Support the energy transition and new businesses.
Put in place an effective intellectual property management system and register an intellectual property out of the research and technology development outcome yearly.
Publish research papers in international conferences and journals and win the prize for national and international innovation award competitions every year.

Success of 4 projects in the prototype phase, 2 projects in the pilot testing phase, and 2 projects in the deployment phase
Increased a return on investment at USD 23.5 million from the deployment of the successfully developed technologies in E&P business
Submitted additional 17 patent applications, and 3 previous applications were granted in 2022, which made up to a total of 11 patents obtained.
Published 8 technical papers in international academic conferences and received 1 award from a technology development project.

Materiality: 3. Governance, Risk Management, and Compliance

Target	2022 Progress
2030 GRC role model of Thai Listed Companies Increase GRC Maturity Level to the highest level (Continuous Improvement with Automation).	Enhanced Risk Management System by implementing Chatbot with aim to effectively manage risks that potentially impact the company's targets. Developed a GRC One Digital System covering various reporting dimensions related to GRC to assist management and relevant parties to obtain immediate GRC information for efficient decision making. Continuously built the GRC culture throughout several communication activities and communicated GRC lessons learned to employees as well as promoted GRC to shareholders such as Explorer's Journal and Facebook: PTTEP Shareholders Society. Improved internal processes to fully comply with the Personal Data Protection Act B.E. 2562. Received the NACC Integrity Awards for the 4^th time from the National Anti-Corruption Commission (NACC). The awards are bestowed upon organizations that operate their business with transparency and uphold universal ethical practices. Received the ISO 22301 Business Continuity Management certification from the BSI (British Standards Institution) by the project in Malaysia.

Target

2022 Progress

2030

GRC role model of Thai Listed Companies
Increase GRC Maturity Level to the highest level (Continuous Improvement with Automation).

Enhanced Risk Management System by implementing Chatbot with aim to effectively manage risks that potentially impact the company's targets.
Developed a GRC One Digital System covering various reporting dimensions related to GRC to assist management and relevant parties to obtain immediate GRC information for efficient decision making.
Continuously built the GRC culture throughout several communication activities and communicated GRC lessons learned to employees as well as promoted GRC to shareholders such as Explorer's Journal and Facebook: PTTEP Shareholders Society.
Improved internal processes to fully comply with the Personal Data Protection Act B.E. 2562.
Received the NACC Integrity Awards for the 4^th time from the National Anti-Corruption Commission (NACC). The awards are bestowed upon organizations that operate their business with transparency and uphold universal ethical practices.
Received the ISO 22301 Business Continuity Management certification from the BSI (British Standards Institution) by the project in Malaysia.

Materiality: 4. Safety, Security, Health and Environment

Target	2022 Progress
Zero incident organization Lost Time Injury Frequency (LTIF) of employees and contractors is ≤ 0. cases per million hours worked in 2022. Total Recordable Injury Rate (TRIR) of employees and contractors is ≤ 0.37 cases per million hours worked in 2022. Achieve zero oil and chemical spills. Safety and environmental management systems are certified in accordance with international standards covering all operations. Zero produced water discharge to environment Avoid operating in areas at risk of water scarcity and ensure that there is no impact on the community and their water usage.	Lost Time Injury Frequency (LTIF) of employees and contractors at 0.15 cases per million hours worked Total Recordable Injury Rate (TRIR) of employees and contractors at 0.88 cases per million hours worked Oil and chemical spill rate at 0.68 tonnes per million tonnes of petroleum production Safety and environmental management systems certified in accordance with international standards: ISO 14001:2015 covering all operations* while ISO 45001:2018 covering only the domestic operations. Zero produced water discharge to environment for operations in Thailand only. No PTTEP operations located in areas at risk of water scarcity. *Remark: Excluding G1/61 project and Yadana project currently in the process of certification after the Company became an official operator.

Target

2022 Progress

Zero incident organization
- Lost Time Injury Frequency (LTIF) of employees and contractors is ≤ 0. cases per million hours worked in 2022.
- Total Recordable Injury Rate (TRIR) of employees and contractors is ≤ 0.37 cases per million hours worked in 2022.
Achieve zero oil and chemical spills.
Safety and environmental management systems are certified in accordance with international standards covering all operations.
Zero produced water discharge to environment
Avoid operating in areas at risk of water scarcity and ensure that there is no impact on the community and their water usage.

Lost Time Injury Frequency (LTIF) of employees and contractors at 0.15 cases per million hours worked
Total Recordable Injury Rate (TRIR) of employees and contractors at 0.88 cases per million hours worked
Oil and chemical spill rate at 0.68 tonnes per million tonnes of petroleum production
Safety and environmental management systems certified in accordance with international standards: ISO 14001:2015 covering all operations* while ISO 45001:2018 covering only the domestic operations.
Zero produced water discharge to environment for operations in Thailand only.
No PTTEP operations located in areas at risk of water scarcity.

*Remark: Excluding G1/61 project and Yadana project currently in the process of certification after the Company became an official operator.

Materiality: 5. Contribution to Communities and Society

Target	2022 Progress
Macro Level: Increase 50% of community income for focused communities and achieve 16,000 conservation networks by 2030, compared to the baseline data before PTTEP project implementation. Help restoring the Gulf of Thailand's marine ecosystem through mangrove forestation, setting up Crab and Aquatic Animal Hatchery Learning Center Project, building community networks, raising the awareness of sustainable fisheries, and promoting seafood value enhancement to social enterprise. Micro Level: Implement social development projects to serve their needs and to create job opportunity for better employment through social development projects, with the objective of building and maintaining a good relationship with stakeholders to gain support from the local community in all operating areas. Social Return on Investment (SROI) of social development project not less than 2:1.	Macro Level: Increased community income of focused communities participating in Aquatic Animal Hatchery Learning Center and Seafood Product Value Enhancement Project by 20.5%, compared to the baseline data before PTTEP project implementation. Promoted and expanded projects of Aquatic Animal Hatchery Center and seafood value enhancement in 17 provinces around the Gulf of Thailand, while creating jobs and improving community income. Increased the number of aquatic animals with economic value and income of fishers through Coastal Conservation Area and Fish Home Project and Aquatic Animal Hatchery Learning Center, which is an improved version of the Crab Hatchery Learning Center. The conservation areas have encompassed 12.8 square kilometers; 25 fish homes have been placed and 10 learning centers have been established in Songkhla, Pattani, Nakhon Si Thammarat, Prachuab Khiri Khan, Surat Thani, Phetchaburi, Samut Songkhram and Rayong provinces. Micro Level: Implemented more than 100 social development projects in all operating areas both domestic and international which help supporting and maintaining a good relationship with stakeholders as well as maintaining smooth business operation continuity without business disruption from communities. Average of Social Return on Investment (SROI) of key 28 social development projects are 3.55:1.

Target

2022 Progress

Macro Level:
- Increase 50% of community income for focused communities and achieve 16,000 conservation networks by 2030, compared to the baseline data before PTTEP project implementation.
- Help restoring the Gulf of Thailand's marine ecosystem through mangrove forestation, setting up Crab and Aquatic Animal Hatchery Learning Center Project, building community networks, raising the awareness of sustainable fisheries, and promoting seafood value enhancement to social enterprise.
Micro Level:
- Implement social development projects to serve their needs and to create job opportunity for better employment through social development projects, with the objective of building and maintaining a good relationship with stakeholders to gain support from the local community in all operating areas.
Social Return on Investment (SROI) of social development project not less than 2:1.

Macro Level:
- Increased community income of focused communities participating in Aquatic Animal Hatchery Learning Center and Seafood Product Value Enhancement Project by 20.5%, compared to the baseline data before PTTEP project implementation.
- Promoted and expanded projects of Aquatic Animal Hatchery Center and seafood value enhancement in 17 provinces around the Gulf of Thailand, while creating jobs and improving community income.
- Increased the number of aquatic animals with economic value and income of fishers through Coastal Conservation Area and Fish Home Project and Aquatic Animal Hatchery Learning Center, which is an improved version of the Crab Hatchery Learning Center. The conservation areas have encompassed 12.8 square kilometers; 25 fish homes have been placed and 10 learning centers have been established in Songkhla, Pattani, Nakhon Si Thammarat, Prachuab Khiri Khan, Surat Thani, Phetchaburi, Samut Songkhram and Rayong provinces.
Micro Level:
- Implemented more than 100 social development projects in all operating areas both domestic and international which help supporting and maintaining a good relationship with stakeholders as well as maintaining smooth business operation continuity without business disruption from communities.
Average of Social Return on Investment (SROI) of key 28 social development projects are 3.55:1.

Materiality: 6. Human Resource Preparation

Target	2022 Progress
Improve the competency of employees at all levels for corporate and international assets to exceed an average of 2021 which increased by 5.94% in preparation for an organizational transformation. Conduct Employee Engagement Survey every 2 years.	Implemented the Individual Competency Development Plan (ICDP), allowing PTTEP to continuously improve employees' competency. In 2022, an average of employees' competency increased by approximately 5.94%. Employee engagement score in 2022: 74%, which is higher than benchmarks: Thailand Market Average, Thailand - Oil, Gas, Exploration and Production, APAC- Oil, Gas and Consumable Fuels and Fortune 500 companies. Based on the employee engagement survey results, an improvement plan has been initiated for execution during 2023 - 2024.

Target

2022 Progress

Improve the competency of employees at all levels for corporate and international assets to exceed an average of 2021 which increased by 5.94% in preparation for an organizational transformation.
Conduct Employee Engagement Survey every 2 years.

Implemented the Individual Competency Development Plan (ICDP), allowing PTTEP to continuously improve employees' competency. In 2022, an average of employees' competency increased by approximately 5.94%.
Employee engagement score in 2022: 74%, which is higher than benchmarks: Thailand Market Average, Thailand - Oil, Gas, Exploration and Production, APAC- Oil, Gas and Consumable Fuels and Fortune 500 companies. Based on the employee engagement survey results, an improvement plan has been initiated for execution during 2023 - 2024.

Materiality: 7. Circular Economy

Target	2022 Progress
2030 At least 50% of main structures must be reused, with safety awareness and efficient conditions. Zero hazardous waste to landfill by 2020, zero industrial waste to landfill by 2025, and zero total waste to landfill by 2030.	Completed a wellhead platform jacket reuse conceptual study. Zero hazardous waste and industrial waste to landfill for operations in Thailand only.

Materiality: 8. Biodiversity Management

Target	2022 Progress
Avoid operating in World Heritage sites as defined by UNESCO and achieve No-Net Loss of biodiversity in Category I-IV protected areas as defined by the International Union for Conservation of Nature (IUCN) by 2044. Achieve Net Positive Impact of Ocean Biodiversity and Ecosystem Services (Ocean BES) value in all offshore operations by 2030, compared to 2019 base year. No Gross Deforestation for E&P from 2021 onwards	No PTTEP operations in areas of high biodiversity risk or World Heritage sites Developed Biodiversity Offset Strategy for the Zawtika Onshore Gas Transportation project in the Republic of the Union of Myanmar, located in an IUCN protected area, to define effective ways forward to achieve no-net loss. Achieved Net Positive Impact of Ocean Biodiversity and Ecosystem Services (Ocean BES) value in all offshore operations by 44.7%. No Gross Deforestation for E&P

Target

2022 Progress

Avoid operating in World Heritage sites as defined by UNESCO and achieve No-Net Loss of biodiversity in Category I-IV protected areas as defined by the International Union for Conservation of Nature (IUCN) by 2044.
Achieve Net Positive Impact of Ocean Biodiversity and Ecosystem Services (Ocean BES) value in all offshore operations by 2030, compared to 2019 base year.
No Gross Deforestation for E&P from 2021 onwards

No PTTEP operations in areas of high biodiversity risk or World Heritage sites
Developed Biodiversity Offset Strategy for the Zawtika Onshore Gas Transportation project in the Republic of the Union of Myanmar, located in an IUCN protected area, to define effective ways forward to achieve no-net loss.
Achieved Net Positive Impact of Ocean Biodiversity and Ecosystem Services (Ocean BES) value in all offshore operations by 44.7%.
No Gross Deforestation for E&P

Materiality: 9. Supply Chain Management

Target	2022 Progress
Maximize operational efficiency, reliability, transparency and shared values between PTTEP and suppliers. Conduct an onsite audit on ESG related risk with all critical suppliers and suppliers with high sustainability risk for the last 3 years.	Reduced the cost of spare drilling pipes and storage space up to USD 4.34 million from pool inventory management. Supported local content in operational areas worth over USD 1,400 million. Implemented green procurement worth approximately USD 566 million. Conducted an onsite audit on ESG related risk with 100% of critical suppliers (Tier 1 and Tier 2 Suppliers) and suppliers with high sustainability risk for the last 3 years.

Target

2022 Progress

Maximize operational efficiency, reliability, transparency and shared values between PTTEP and suppliers.
Conduct an onsite audit on ESG related risk with all critical suppliers and suppliers with high sustainability risk for the last 3 years.

Reduced the cost of spare drilling pipes and storage space up to USD 4.34 million from pool inventory management.
Supported local content in operational areas worth over USD 1,400 million.
Implemented green procurement worth approximately USD 566 million.
Conducted an onsite audit on ESG related risk with 100% of critical suppliers (Tier 1 and Tier 2 Suppliers) and suppliers with high sustainability risk for the last 3 years.

Materiality: 10. Biodiversity Management

Target	2022 Progress
No loss from all cyber attacks Test the IT BCM and incident response procedure > 2 times per year. All IT infrastructures are certified in accordance with international standards.	No major production disruption or data breach from cyber attack Completed the IT BCM and incident response procedure testing 2 times per year. Complied with cybersecurity guidelines on the National Institute of Standards and Technology (NIST)'s standardized framework, and all data center facilities were certified by ISO 27001.

Materiality: 11. Human Rights

Target	2022 Progress
No human rights violation from direct operational activities Annual human rights risk assessment covers 100% of operating assets, non-operated joint ventures, and Tier-1 suppliers.	Found 3 wrongdoing cases, considered as a disciplinary offense pursuant to the Human Resources Management Policy and Business Ethics on Human Resources. PTTEP gave written warnings and termination without severance pay to the offenders. Human rights risk assessment was conducted in 2022, covering 100% of operating assets, non-operated joint ventures, and Tier-1 suppliers through Enterprise Risk Management System. Related data and issues were systematically gathered, mitigated and monitored.

Target

2022 Progress

No human rights violation from direct operational activities
Annual human rights risk assessment covers 100% of operating assets, non-operated joint ventures, and Tier-1 suppliers.

Found 3 wrongdoing cases, considered as a disciplinary offense pursuant to the Human Resources Management Policy and Business Ethics on Human Resources. PTTEP gave written warnings and termination without severance pay to the offenders.
Human rights risk assessment was conducted in 2022, covering 100% of operating assets, non-operated joint ventures, and Tier-1 suppliers through Enterprise Risk Management System. Related data and issues were systematically gathered, mitigated and monitored.

Materiality: 12. Stakeholder Management

Target	2022 Progress
Maintain good relationships through stakeholder management in response to stakeholder needs and expectations. The highest level (Level 4) of community commitment level	Conducted a sustainability materiality assessment with stakeholder groups and developped corporate strategies accordingly. Community commitment level: 2.52

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