Approach to Reporting
Materiality Assessment Process
PTTEP's materiality analysis includes a structured review of current and future business risks and opportunities based on the framework developed by the Global Reporting Initiative (GRI). The material issues include aspects that reflect significant economic, environmental and social impacts for PTTEP. The materiality analysis is conducted on a yearly basis as part of the reporting cycle.
Materiality Assessment Process:
To identify and prioritize material issues, define reporting boundaries and to conduct a materiality analysis, this process has been prepared in accordance with the GRI Standards: Core option. It has been prepared in accordance with Oil and Gas Sector – OGSD, defining reporting boundaries, prioritizing, validating; and reviewing and continuous development of issues. The details of PTTEP materiality assessment process are summarized below.
GRI Principles for Defining Report Content are used to conduct the sustainability materiality assessment to identify the material issues from the perspective of PTTEP business and stakeholders. The process is based on consideration of PTTEP's strategy and activities, risks and challenges, expectations from the society, applicable laws and regulations, future trends and stakeholder feedback. PTTEP considers the GRI aspects; the identified issues address the full scope of sustainability issues: environmental, social and governance.
Defining Reporting Boundaries:
For each Material Aspect, PTTEP considers whether the impact of that issue lies inside or outside the organization and assess and describe where the impact end by considering the relevance to different stakeholders groups i.e. external groups such as suppliers, contractors, and communities.
PTTEP assessed level of significance of the ranks and prioritize identified issues using agreed criteria (magnitude of impact, importance to investors, society, and business). Each issue is prioritized as low, moderate or high for current or potential impact on the Company, and degree of concern to stakeholders.
PTTEP uses focus group meetings with relevant functions as well as PTTEP key stakeholders to identify the key materiality issues.
The issues and their ratings are then plotted on a "materiality matrix" with
- X (horizontal axis) is "significance to PTTEP"
- Y (vertical axis) is "significance to stakeholders"
PTTEP consider the issues in the upper-right quadrant to be the most material. None of the issues are unimportant in the materiality assessment; the position of each issue in the matrix simply represents the understanding of its relative importance to the Company and its stakeholders.
The list of material issues are presented to the Management Committee to finally review and approve. The materiality assessment is based on the result of the prioritize identified issues. All identified material issues are assessed against the Reporting Principle of 'Completeness' prior to gathering the information to be reported. The aspects identified in the prioritization step are checked against the dimensions of Scope, Boundary and Time.
Review and Continuous Development
PTTEP's review process applies the principles of 'Stakeholder Inclusiveness' and 'Sustainability Context' to ensure continuous improvement of information disclosure. PTTEP is engaging internal and external stakeholders to check whether the report content provides a reasonable and balanced picture of the organization's sustainability performance, and if the process by which the report content was derived reflects the intent of the two Reporting Principles. The comments and suggestions from external stakeholders through the annual stakeholder meeting event, interviews, surveys, and website user statistics are considered. The findings inform and contribute to the identification step for the next reporting cycle.
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