Importance and Mission
PTTEP is committed to fundamental human rights by honoring local laws, cultures, traditions and values in treating employees and stakeholders as well as avoiding human rights violation. PTTEP follows human rights principles and attempts to enforce them throughout the supply chain on expectation that the Company's employees, suppliers and contractors acting on behalf of the Company would adhere to common principles and integrate all involved aspects in their operations.
Human rights commitment
PTTEP respects human rights wherever it operates, as guided by its corporate good governance principles, business ethics, CSR framework and sustainability philosophy which is based on the Universal Declaration of Human Rights (UDHR) and the International Labor Organization's (ILO) Declaration on Fundamental Principles and Rights at Work. Importantly, PTTEP participated in the United Nations Global Compact (UNGC) in 2011 and is required to report on the implementation of human rights measures and impacts on stakeholders. To ensure economic and social values of business operations, UNGC highlights the need for businesses to integrate 10 principles into their operations. PTTEP's Communication on Progress on the implementation of 10 principles has been in UNGC Advanced Level since 2015 which largely fall into four categories of human rights (Principles 1-2), labor (Principles 3-6), environment and anti-corruption (Principles 7-10). and details are published on UNGC website. Moreover, PTTEP's human rights policy is based on the United Nations Guiding Principles on Business and Human Rights (UNGP) or Ruggie Framework, and the Voluntary Principles on Security and Human Rights. The Company expects its personnel to uphold PTTEP's Human Rights Policy and seeks business partners and suppliers' cooperation in honoring human rights principles in any business activities.
Our Business Ethics & Code of Conducts state that PTTEP Group upholds "good corporate governance and business ethics", committed to operating without causing social and environmental impacts, honoring human rights principles and taking into account stakeholders' interests. As a responsible citizen, PTTEP ensures strict implementation of the human rights policy among employees and at all premises. Such implementation has been continuously monitored while business practices have been continually improved. Suppliers and business partners are encouraged to follow the same path.
1. Business partners
Business partners are expected to respect human rights and follow international practices that are aligned with PTTEP's policy. PTTEP supports, promotes and pushes business partners to manage human rights issues or related risks based on common agreements. PTTEP seeks business partners' cooperation through an exchange on best practices, the development of appropriate approaches to deal with the risks, and the development of Joint Operating Agreement chiefly for transparent operations.
2. Responsible supply chain
To achieve safe and sustainable operations and zero social and environmental impacts, PTTEP's suppliers and contractors vow to follow sustainability path, starting with agreeing to PTTEP Vendor Sustainable Code of Conduct. PTTEP has established the assessment and monitoring process, enforced before the selection and during the contract life particularly with critical suppliers and high-risk activities, to ensure their operations meet standards, contractual clauses, business ethics and human rights principles. Such practice is expected to prevent and reduce possible social and environmental risks.
For concrete implementation of PTTEP's Human Rights Policy with respect to human rights and prevention of violation, the Company developed the Human Rights Management System which involves (1) identification of human rights risk through due diligence process (2) development of mitigation measures (3) integration of actions in project and corporate levels and (4) monitoring and reporting of performance to relevant stakeholders. Activities under the system are as follows:
Human rights Due Diligence
covers human rights-related risk assessment, mitigation plan and measures for medium to high risks, and monitoring of such risks.
The system clearly specifies the required identification of human rights issues which are classified into five main groups based on their involvement: personnel, community, supply chain, the environment and security. Such identification also includes the vulnerable like children, ethnic minorities, indigenous people and migrant workers. Risk levels are assessed in accordance with two factors - the likelihood and its impact, being aligned with PTT Group's requirements, UN Global Compact's due diligence guidelines and IPIECA's practices.
Further information on PTT Group's Risk Assessment Framework is on PTT Human Rights Management page.
Human right risk and mitigation measures
PTTEP has been conducting human rights risk assessment annually since 2014 to assess risks, directly and indirectly caused by the Company's operations, and to determine mitigation measures.
During 2019 - 2020, PTTEP strengthened the human rights management through further communications and training for relevant units such as human resource, community relations, and procurement. The goal is for personnel to gain a better understanding in the identification of human rights risks, which will lead to appropriate management. PTTEP has outsourced independent human rights specialists to advise and audit the 2020 risk assessment process and Human Rights Due Diligence (HRDD). PTTEP participated in the government's public workshop to review and give feedback on Thailand's National Action Plan on Business and Human Rights (NAP), the first NAP enforced in Asia Pacific. In 2020, PTTEP was awarded Role Model Organization on Human Rights for the state enterprise sector for the second consecutive year, from the Department of Rights and Liberties Protection, Ministry of Justice.
All human rights-related risks of PTTEP are put in the Company's Human Rights Risk Register. It includes the risks in key activities of both onshore and offshore assets in every phase; for example, seismic survey, exploration and appraisal drilling, development and production, recruitment, supply chain management and security management from the day M&A due diligence starts through decommissioning.
PTTEP's human rights risk assessment in 2020 covered 100% of operating assets, non-operated joint ventures, and Tier 1 suppliers. The result showed 19% of the Company's activities contained low to medium-level human rights risks which involved four salient issues as follows: (1) personnel and contractors' health, safety, and welfare; (2) impacts from light, noise, and other environmental pollution in operational areas; (3) health, safety, and quality of life of the local community; and (4) social projects and environmental management from operations in decommission phase that showed natural risk level (uncontrolled risks). The issues have been addressed by PTTEP's practices under Safety, Security, Health and Environment (SSHE) Management System, Human Rights Management System and Issue and Stakeholder Management System, and the Company found no high residual risk.
To prevent and reduce potential violation, the Company required the monitoring on high-level risks. Though the 2020 assessment showed medium-level risks, the Company exercised high alert monitoring on five operating sites (25% of 20 operating assets) and three non-operated Joint Venture sites (16% of 19 non-operating Joint Venture assets). The aforementioned sites are monitored and mitigation plans are 100% prepared.
Of all assets, PTTEP places emphasis on the preparation on relinquishment and decommissioning of two Joint Venture assets in the Gulf of Thailand - B8/32 and Contract 3. PTTEP worked closely with the operators in developing an effective work plan in alignment with international standards and intense environmental management measures. The information of such activities has been transparently, timely and thoroughly disclosed to community, government agencies and other institutions, to ensure zero impacts on the environment and community's rights. The implementation and potential risks are regularly monitored and discussed at Joint Operating Committee meetings.
The Company also follows up on the progress of Mozambique Area 1 Project (a non-operating Joint Venture with less than 10% interests), 1 out of 49 operational and Joint Venture projects that requires resettlement. The project was assessed in 2018 with potential human rights issues regarding the relocation of the community and required a follow-up. PTTEP and other partners worked on a resettlement program, community engagement and other actions in accordance with Equator Principles and IFC Performance Standards, to ensure fair treatment and minimize the impact on the livelihood of the local community. The resettlement program along with community development programs ease the settlers' adjustment and improve their quality of life as well as the standard of living. As of 2020, the construction of accommodations for Phase 1 resettlement was completed as planned and the relocation is underway.
In 2020, PTTEP received no report on human rights violation and no remediation was necessary. Nevertheless, PTTEP recognizes the importance of human rights protection and remediation for individuals who may be affected by its operations. The Company has therefore established regulations on whistleblowing and whistleblower protection. Communication channels accessible to all stakeholders are in place, where they can voice their comments and grievances. PTTEP developed the guideline to be used as a framework and guidance to ensure appropriate remediation, compensation and mitigation (in monetary and non-monetary forms) for the people affected by the complaint as stated in the Remediation Guideline.