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 and based on the Universal Declaration of Human Rights (UDHR) and the International Labor Organization's (ILO) Declaration on Fundamental Principles and Rights at Work. Most 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 (CoP) on the implementation of 10 principles has been in UNGC Advanced Level since 2015, mainly falling into 4 categories of human rights (Principles 1-2), labor (Principles 3-6), environment and anti-corruption (Principles 7-10) and the 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. In addition, the Company is committed to aligning its human rights implementation with the National Action Plan on Business and Human Rights – NAP in all related dimensions, and 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 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. In view of Supply Chain, PTTEP has communicated with its suppliers and contractors to seek their acknowledgement and agreement to PTTEP Vendor Sustainable Code of Conduct to achieve safe and sustainable operations and minimum social and environmental impacts. Also, PTTEP has established the assessment and monitoring process and enforced before the selection and during the contract life particularly with critical suppliers and high-risk activities, to ensure that their operations meet standards, contractual clauses, business ethics and human rights principles. Such practices are 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 3 key aspects: (1) human rights due diligence (2) whistleblowing and remedies (3) building shared responsibility and understanding on human rights as outlined below:
Human rights Due Diligence
PTTEP has incorporated a Human Rights Due Diligence Process into its Human Rights Management System. The due diligence covers human rights-related risk assessment, mitigation plan and measures for medium to high risks, and monitoring of such risks. In 2020, PTTEP outsourced independent human rights specialists to advise and audit its risk assessment process and Human Rights Due Diligence (HRDD).
PTTEP Human Rights Management System clearly specifies the required identification of human rights issues which are classified into 5 main groups based on their involvement: personnel, community, supply chain, 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 2 factors: the likelihood and its impact, being aligned with PTT Group's requirements, UN Global Compact's due diligence guidelines and IPIECA's practices.
The Company 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. All identified risks, which cover the risks from 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 start of M&A due diligence through decommissioning, are to be recorded in PTTEP's Human Rights Risk Register.
PTTEP's human rights risk assessment in 2021 covered 100% of operating assets, non-operated joint ventures, and Tier-1 suppliers. The result showed 12% of the Company's activities contained medium-level human rights risks which involved 3 salient issues: (1) personnel and contractors' health, safety, and welfare; (2) impacts from light, noise, and other environmental pollution in operational areas; and (3) health, safety, and quality of life of the local community. 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 requires the monitoring on medium-to-high-level risks. Although there were only medium-level risks identified in the 2021 assessment, the Company exercised high alert monitoring on 4 operating sites (20% of 20 operating assets) and 2 non-operated Joint Venture sites (10% of 21 non-operating Joint Venture assets). The aforementioned sites were monitored and mitigation plans were 100% prepared.
In addition, the Company has continuously followed up on the progress of Mozambique Area 1 Project (a non-operating joint venture in which PTTEP holding 8.5% shares), particularly on the relocation of the community. To ensure that the resettlement is well organized, PTTEP and its partners have worked on a resettlement program, community engagement and other actions in accordance with international standards to ensure fair treatment and minimize the impact on the livelihood of the local community. The resettlement program along with community development programs supports the settlers' adjustment and improves their quality of life and the standard of living while promoting self-reliance through supports on agriculture, local business for living, transportation, and community water system, etc.
As of 2020, the construction of accommodations for Phase 1 resettlement was completed as planned and the relocation of the community is underway. However, the unrest situation in the project area in the beginning of 2021 has stalled the progress. The Project is in full cooperation with the government of Mozambique to provide humanitarian supports to the resettlement-affected population where possible. PTTEP truly hopes the situation will resolve soon.
Since the start of the Republic of the Union of Myanmar political situation in 2021, PTTEP has been closely following the situation of the Republic of the Union of Myanmar where PTTEP has supplied natural gas for electricity generation to help better the standard of living of people in Myanmar and support the economic growth of the country. As the company believes that energy plays an important role to develop basic necessity for household and industry, including the everyday lives of people, hospitals, telecommunications, educational institutions and businesses that contribute to the country's economy, PTTEP maintains its operations even after the situation. In addition, PTTEP continuously supports several socially responsible projects to improve the quality of lives in the communities where our operations are located. PTTEP's primary concern lies in the welfare and safety of all Myanmar people and the Company truly hopes the situation will resolve soon and bring peace back to the Republic of the Union of Myanmar.
Further information on PTT Group's Risk Assessment Framework is on PTT Human Rights Management page.
Whistleblowing and Remedies
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.
Building Shared Responsibility and Understanding on Human Rights
During 2019 - 2020, PTTEP had put effort in building shared responsibility, awareness and understanding on human rights through communications and trainings for relevant units such as human resources, community relations, and procurement. The goal is for its personnel to gain a better understanding on the identification of human rights risks, which will lead to appropriate management. In 2021, PTTEP expanded human rights training on online platform to cover all PTTEP employees with aim to enhance their knowledge and understanding on human rights fundamentals and PTTEP Human Rights Management System, with more than 122 hours of staff participating.
In addition, PTTEP participated in the government's public workshop to review and give feedbacks on Thailand's National Action Plan on Business and Human Rights (NAP), the first NAP enforced in Asia Pacific, and the 4th National Human Rights Plan. Besides, PTTEP participated in human rights panel sessions to share its views and best practices. Thanks to the efforts, PTTEP was awarded the 2021 Role Model Organization on Human Rights in State Enterprise sector from the Rights and Liberties Protection Department for the 3rd consecutive year.