Climate Strategy and Target
Climate change will have significant potential effects on our operating environment, such as an increase in severe weather events, increase in the rigidity of national and international policies and regulations on climate change and drive towards low carbon future.
PTTEP firmly believes that we have a responsibility to both mitigate the risks from climate change and prepare adaptation measures for the changes that are inevitable. Our growing natural gas portfolio serves as a cleaner energy source. At our operations, we are always exploring new ways to improve energy efficiency and reduce emissions.
PTTEP aims to become a low carbon organization by setting GHG intensity target to reduce at least 25 percent of our greenhouse gas emissions from 2012 base year by 2030, covering all operating assets and petroleum support bases under our operational control. This target is aligned with the 2-degrees scenario for energy sector as recommended by the International Energy Agency (IEA).
To achieve the target, PTTEP has employed the GHG reduction projects by means of e.g. flare/excess gas recovery and utilization, energy efficiency improvement, process improvement and methane leak reduction.
In addition, recognizing that greenhouse gas emissions come at a cost, PTTEP in collaboration with the PTT Group is launching a campaign to develop an internal carbon price. The internal pricing is a mechanism designed to help guide our investment decisions, especially in projects that may have significant emissions.
We demonstrate a commitment to transparency and accountability by disclosing our climate change strategy and performance through the annual report and sustainability report. In addition, PTTEP has been also disclosing environmental data concerning climate change to the Carbon Disclosure Project (CDP) since 2010. We have been benchmarked at “Leadership Level” for 6 consecutive years since 2014, revealing our progress towards environmental stewardship against peers.
PTTEP has also signed on to the Climate Disclosure Standards Board’s (CDSB) commitment to report climate change in mainstream corporate reports (such as Form 56-1 in Thailand). We are proud to be one the 49 leading companies worldwide to do so.
With our vision to become an “Energy Partner of Choice”, we understand the importance of collaboration and value our partnerships with other organizations to create positive climate action. We have committed to responsibly engage with third parties on climate policy, consistent with UN Global Compact’s Guide for Responsible Corporate Engagement in Climate Policy. Our partnership with Thailand Greenhouse Gas Organization (TGO) to establish a carbon market in Thailand is an example of our engagement on climate change. In addition, we always seek opportunities to reduce or offset our greenhouse gas emission by e.g. purchasing carbon credits in order to offset the emissions from our internal events and activities and to support the TGO’s carbon credit market, reforestation to promote the carbon dioxide sequestration scheme and participation in TGO’s LOW Emission Support Scheme (LESS) to reduce greenhouse gas emissions through the use of renewable energy, increasing energy efficiency and waste management.
Climate Related Risk Management
PTTEP takes into serious consideration the risks that may result from climate change which considers as an “Emerging Risk ”. We identified the following climate change risks (current or future) to have the potential to generate a substantive change in the business operations, revenue or expenditure under the following 3 dimensions:
- Risks driven by changes in regulation
- Risks driven by changes in physical climate parameters
- Risks driven by market changes for countries whose PTTEP is the operator
Our climate change risk management and adaptation studies have revealed that PTTEP currently has no immediate risks. In the medium and long terms, there are risks at the medium level according to our internal PTTEP Risk Matrix that will be carefully monitored and mitigated so that the risk is reduced to the as Low as Reasonably Practicable (ALARP) level. PTTEP recognizes the emerging risks from climate change and are committed to ensuring that our business is sustainable by diligently monitoring, evaluating and mitigating the risks. The records of our risks and management methods are input into the SAP GRC system and monitored quarterly.