Labour Practices

PTTEP commits to respecting fundamental human rights by complying with all applicable legal requirements, cultures, customs and values in dealing with all of our stakeholders and avoiding any complicity in human rights abuses. Please see our Human Rights Policy which can be downloaded below in "Related Documents".

Labor Practice

PTTEP believes that human resources is an important factor that drives the organization towards success. PTTEP focuses on the development of systematic human resources management, treating employees equally, and encouraging employees to develop their professional knowledge and skills through our sophisticated competency management and performance management systems, as well as promoting their work-life balance. In addition, PTTEP’s employee engagement approach focuses on a two-way communication in order to incorporate employees’ feedback to continually improve our work process, work environment, and employees’ well-being.

PTTEP is a participant of the United Nations Global Compact (UNGC) and reports on the extent to which processes have been implemented, the promotion of human rights and the changes in the stakeholders' ability to enjoy and exercise them. PTTEP supports the Universal Declaration of Human Rights and the fundamental rights set out in the International Labour Organization's Declaration on Fundamental Principles and Rights at Work. PTTEP strictly complies with labor laws in every country we operate. PTTEP ensure to strictly complies with requirements of labor laws and regulations in every country we operate. For Thailand, a Welfare Committee, which comprises of 22 employee representatives from all operating areas in the country and 7 employer representatives, was established to discuss compensation and benefits and labor rights issues every two months. In 2019, the Welfare Committee was held 6 times, considered and discussed 48 issues relating to compensation, benefits and career opportunities.

Human Rights

As part of our core principles, PTTEP commits to respecting fundamental human rights by complying with all applicable legal requirements, cultures, customs and values in dealing with all of our stakeholders and avoiding any complicity in human rights abuses both in our operations and throughout our value chain. We expect everyone who works for or on behalf of PTTEP adopt our core principles and take responsibility to ensure that the committed expectations are fully met in all aspects of our business.

Human Rights Commitment
 
PTTEP Good Corporate Governance and Business Ethics, CSR Framework and Sustainability philosophy are founded on the principles of the Universal Declaration of Human Rights (UDHR) and the International Labor Organization (ILO) Declaration on Fundamental Principles and Rights at Work and is a signatory to the United Nations Global Compact (UNGC). PTTEP has been a UNGC member since 2011 and our Communication on Progress (COP) has met the UNGC Advanced Level criteria since 2015. UNGC aims to ensure that businesses positively contribute to society, both economically and socially. This is achieved through its ten overarching principles which largely fall into four categories of human rights (Principles 1-2), labor (Principles 3-6), environment and anti-corruption. PTTEP also reports our progress against the ten principles in the COP. Please visit the UNGC website for more information. In addition, PTTEP also has a Human Rights Policy which adopts the United Nations Guiding Principles on Business and Human Rights (UNGP) as well as the Voluntary Principles on Security and Human Rights and applies the Ruggie Framework to our company’s business. It is incumbent on all company employees to comply with PTTEP Human Rights policy and seek to work with suppliers and business partners who share our commitment to human rights.

Network of Responsible Operation

Our Business Ethics & Code of Conducts states that PTTEP Group is committed to operating its business without causing any undue negative impacts on environment, society and with respect for the human rights and interests of our stakeholders. As a responsible operator, we’re committed to ensuring that all our employees and own operations implement human rights policy as well as continuously monitor, influence and improve the business practices of our own operations and those of our suppliers and business partners.

Partnerships
In PTTEP’s business dealings, we expect our partners to adhere to business principles consistent with our own. Permitted by rights in the Joint Operating Agreement (JOA), PTTEP works closely with a number of key global partners to share learnings, good practice and manage challenges on human rights risks and issues. Collaboration, partnership and transparency are critical factors to identifying human right risks, taking appropriate actions and building the broad-based coalitions needed for sustained progress of our Joint Venture business.

Responsible Sourcing
PTTEP’s goal is to achieve safe and sustainable operations, minimize our environmental and social impacts. To achieve this we are committed to working with Suppliers and Contractors who sign up to our values as communicated in PTTEP Supplier Code of Conduct. PTTEP has established and maintained procedures to evaluate and select suppliers and contractors based on our core values, including human rights. We carry out risk-based due diligence assessment on Tier 1 suppliers prior to contract award and periodically review that suppliers are operating to agreed standards during the contract delivery especially on those who are working on higher risk activities.


Approach

To fully comply with our Human Rights Policy which respects human rights and avoids any complicity in human rights abuses, PTTEP developed the human rights management system which involves (1) identification of human rights risk through due diligence process (2) development of mitigation measures in response to medium/high human rights risk and (3) integrate action in business operation (4) monitoring performance and report to stakeholder. Actions and procedures we undertake to meet our commitment are:

Exercise Due Diligence

PTTEP Human Rights Management System Guideline defines requirements for PTTEP related human rights issues covering 5 key areas: employee, community, supply chain, environment and security. The human rights issues related to the vulnerable groups including children, minorities (e.g. indigenous peoples), migrant workers and the environment are also incorporated into these key issues. Risk ratings are assessed on two factors which are likelihood and impact in line with the PTT group. We conduct our risk assessment in alignment with the Group Framework, and IPIECA guidance on Human Rights Due Diligence.

Further details on Group Risk Assessment Framework can be accessed through PTT Human Rights page

Management Results

During 2019 and 2020, PTTEP continues to strengthen the management of human rights-related activities across functions within our company. This involved recurrent training workshop with functional teams such as Human Resources, Community, Procurement on Corporate side to identify, address and govern human rights risks in a holistic way as well as bringing in a third party human rights specialists to work more closely with our frontline and operation teams to support risk assessment and due diligence process. Moreover, PTTEP actively participated with civil society on human rights direction. This included government’s public workshop to review and feedback on Thailand’s National Actions Plan on Business and Human Rights (published December 16, 2019 - the first NAP in Asia and the pacific). Also in 2019, PTTEP was awarded for state enterprise sector as a Role Model Organization on Human Rights from the Department of Rights and Liberties Protection, Ministry of Justice.

Regarding due diligence, PTTEP has implemented the human rights risk assessment process since 2014 with aims to identify and mitigate human rights risks associated directly or indirectly with all of our activities where human rights issues could potentially occur.

The Human Rights Risk Register incorporates all of the human rights related risks in key activities for both onshore and offshore assets covering all phases in project life cycle where human rights issues could potentially occur in our operation such as seismic survey, exploration and appraisal drilling, development and production, employment practices, supply chain management, security management; from risk assessment prior to investment to decommissioning and restoration.

Through 2019 human rights risk assessment process, the Company assessed human rights risks across value chain covering 100% of operating assets, non-operating joint ventures and Tier 1 suppliers. The assessment identified inherent human rights risks in 19% of PTTEP value chain with the following four salient human right issues relevant to our operations: security, safety, health and well-being of employees and contractors; annoyance from noise, vibration and air pollution from operations; health, safety and quality of life of local communities, and environmental and social project management for relinquish and decommissioning. Implementing the company management standards e.g. SSHE Management System, Human Rights Management System, Issue and Stakeholder Management System etc., none of the sites remain with high residual risk.

Nevertheless, to reduce risks that may lead to potential escalation and violations, five of our own and operating sites (account for 25% of total 20 operating assets) and three of non-operating joint venture sites (account for 16% of total 19 non-operating JV assets) established mitigation plan on monitoring and remediation regardless of residual risks at Medium level at maximum. 2019 mitigation plan were implemented for 100% of the eight identified areas.

Of all the areas the company has set the measures to prevent risks, we identified the success of relinquishment and decommissioning preparation, particularly at two of the Joint Venture assets, B8/32 and Contract 3, with highest priority for human rights risk monitoring and management. Key mitigations include stringent environmental management plan as well as transparent, inclusive, consistent and timely stakeholder engagement program. To ensure effective management, PTTEP has worked closely with the operator in developing the management program in line with international standards and guidelines as well as regularly monitoring implementation and discussing potential human rights risk and issues at joint technical and operating committee meetings.

Another Non-operating Joint Venture that was assessed with potential human rights issue in 2018 and we continue to coordinate with operation in completion of mitigation plan was Mozambique Area 1 Project (a non-operating JV with stake under 10%). It is the only project that requires resettlement for land access, representing 1 out of 47 operational and joint venture projects. PTTEP is closely following up on the resettlement program which was developed in alignment with The Equator Principles and the IFC Performance Standards, adopting practices designed to minimize the impact to livelihood of people living in the project's area of influence. The resettlement program in combination with community development programs underwent comprehensive consultation to enable the communities to restore and, in many cases, improve their livelihoods and standard of living. As of 2020 Q2 the program proceeds according to plan for relocation of villagers to resettlement village in order to commence the construction of LNG facilities.

In 2019, PTTEP had no cases of human rights violation. Thus, there were no grievance remediation action necessary. PTTEP prioritizes the significance of human rights protection and remediation for all individuals affected from our operations. The Company established procedure on whistleblower protection as well as open grievance channels for all affected individuals to report their complaints in our grievance mechanism.

Please see our Human Rights Policy which can be downloaded below.