Sustainability Framework and Strategy

Sustainability Journey

PTTEP set sight to become a sustainable organization since its inception in 1985. The journey started with a goal to be a "green organization" to which environment stewardship and management was a priority. The sustainability concept that involves Environmental, Social and Governance elements was subsequently applied and in 2011, PTTEP participated in the United Nations Global Compact (UNGC), demonstrating our commitment to uphold the UNGC 10 principles that highlight 4 main aspects - human rights, labor, environment and anti-corruption. Later in 2015, PTTEP, adhering to all advanced criteria, was named at Advanced Participant level of the UNGC.

Moreover, PTTEP has adopted several international sustainability assessment criteria, like Dow Jones Sustainability Indices (DJSI), MSCI, FTSE4Good, etc. as part of its sustainability management. In addition, the sustainability reporting complies with Global Reporting Initiative (GRI) and International Petroleum Industry Environment Conservation Association (IPIECA) which are guidelines on international sustainability.

In 2019, PTTEP formulated sustainability framework and strategy, and set clear long-term targets (2030). Under the inside-out approach, PTTEP strived for impressive performance on strong business foundation, to deliver sustainable values to society (From We to World).

In 2020, the Board of Directors made an important step in pushing the organization's sustainable development for concrete implementation. It approved sustainability strategy with long-term targets and SD Statement, to ensure common understanding among employees and other stakeholders. The Corporate Governance Committee's scope of responsibilities was extended to cover the formulation, supervision and promoting of overall sustainable development policy and activities which are closely monitored on a quarterly basis. The Committee was renamed to Corporate Governance and Sustainable Development Committee, following the shareholders' resolution at the 2020 annual meeting. Currently, the Committee name is Corporate Governance and Sustainability Committee.

Sustainability Framework and Strategy

Sustainability Framework

With PTTEP's strong belief that the "Right Balance" of business, social and environment aspects will contribute to business sustainability, the "Sustainability Framework" was formulated. The framework plays a vital role in assuring business continuity to support national energy security while safeguarding society and environment. PTTEP strives to build sustainability from within through its operational excellence on a strong business foundation while being committed to delivering long-term values to all stakeholders as the Company believes that this will ultimately bring sustainability to society (From We to World) and enable PTTEP to achieve its vision of "Energy Partner of Choice". The Sustainability Framework emphasizes High Performance Organization (HPO), Governance, Risk Management and Compliance (GRC), and Sustainable Value Creation (SVC). The framework supports 17 United Nations Sustainable Development Goals (UN SDGs), whereas the sustainability-related material issues correspond with the UN SDGs: 7, 8, 12, 13, 14 and 16 which are directly related to the Company's business operations.

  1. High Performance Organization (HPO)
    Emphasizing continuous performance improvement to become more effective, efficient, and productive in response to the energy transition with a focus on technology and innovation, decarbonization and future energy.
  2. Governance, Risk Management and Compliance (GRC)
    Emphasizing transparent and efficient operations for the organization's stability and sustainability through governance, appropriate risk management, and internal control as well as strict compliance with relevant laws and regulations.
  3. Sustainable Value Creation (SVC)
    Emphasizing long-term value creation for all stakeholder groups through organizational sustainability, responsible operations, natural resource conservation, environmental rehabilitation as well as community and social development.

Materiality Issues

Materiality Assessment Process

In 2022, PTTEP assessed and reviewed material issues on sustainability encompassing the Environmental, Social and Governance (ESG) issues and consider in the 2-dimensional aspects which were significance of issues in PTTEP view and significance of issues in the view of stakeholders which are (1) Government Agencies and Regulators (2) Vendors, Suppliers/Contractors (3) Customers (4) Employees (5) Shareholders, Investment & Financial Institutions and Creditors (6) Business Partners, Consortium and Joint Ventures (7) Communities (8) Independent/Public Organizations, NGOs and Academics (9) Press and Media. The 2-dimensional issues were prioritized accordingly to the Global Reporting Initiative Standards: GRI Standards (2021) and AA1000 AccountAbility Principles: AA1000APS (2018). The material issues reflected national and international sustainability trends that corresponded with the United Nations Sustainable Development Goals and Sustainability Accounting Standards Board's SASB Materiality MapTM for Oil & Gas – Exploration & Production Industry. The materiality assessment results served as the crucial input for developing and improving corporate strategies. The assessment process was completed as follows.

  1. Identification
    Considered the company's business strategy, enterprise risks, and challenges, as well as social, business, and environmental activities, including the comparison with global sustainability trends and direction, peers, and related institutions, in conjunction with the stakeholders' suggestions, expectations, and interests.
  2. Prioritization
    Once the key material issues were identified, PTTEP assessed these issues in two dimensions: the significance to PTTEP and the significance to stakeholders. The prioritized issues are presented in the form "Materiality Matrix" by
    X (horizontal axis) is "significance of each materiality to PTTEP"
    Y (vertical axis) is "significance of each materiality to stakeholders"
    PTTEP consider the issues in the upper-right quadrant to be the most significant,
  3. Validation
    The Board of Director and The Management Committee reviewed and approved the material issues for disclosure in the sustainability report, website and considered to define the Company's direction and strategy. An external audit was annually carried out to verify the transparency, accuracy, and completeness of the disclosed information.
  4. Review and Report Development
    Improved the participation procedure, as well as gathered feedback and recommendations from stakeholders to further improve the report to better reflect the stakeholders' issues.

2022 Materiality Issues

  1. Energy Transition towards Net Zero
  2. Technology and Innovations
  3. Governance, Risk Management, and Compliance
  4. Safety, Security, Health, and Environment
  5. Contribution to Communities and Society
  6. Human Resource Preparation
  7. Circular Economy
  8. Biodiversity Impact Management
  9. Supply Chain Management
  10. Cybersecurity
  11. Human Rights
  12. Stakeholder Management

Sustainability Strategy

As guided by the Sustainability Framework and material issues, PTTEP sets 3 main strategy pillars as well as other strategies to strengthen our sustainability performance covering Environment, Social and Governance (ESG). PTTEP's sustainability strategies and long-term targets are as follows: