Importance and Mission
PTTEP realizes the importance of compliance with relevant laws and regulations as well as responsibility for community, society, and the environment in all operating areas, to reduce both direct and indirect impacts on the environment (inclusive of spillage, climate change, biodiversity, waste, air pollution, and water resources). PTTEP has garnered stakeholders' trust and has embodied the values of responsible consumption of natural resources, environmental stewardship, conservation, and sustainable management.
- Reduce greenhouse gas emissions intensity at least 25% by 2030, compared to the 2012 base year.
- Achieve hazardous waste to landfill by 2020; zero industrial waste to landfill by 2025; and zero total waste to landfill by 2030.
- Achieve zero oil and chemical spill.
- Avoid operating in areas at risk from water scarcity and ensure that there is no impact on the community and water users.
- Avoid operating in World Heritage sites as defined by UNESCO and achieve No-Net Loss of biodiversity in protected areas as defined by the International Union for Conservation of Nature (IUCN) by 2024 and;
- Achieve Net Positive Impact of Ocean Biodiversity and Ecosystem Services (Ocean BES) value in domestic offshore operations by 2025 and all offshore operations by 2030, compared to the 2019 base year.
PTTEP commits to operate business conscientiously and responsibly towards society and the environment by adhering to the Safety, Security, Health, and Environmental (SSHE) Policy which includes a commitment to environmental protection. Company personnel, business partners, and contractors working for or on behalf of the Company must abide by the SSHE Policy. PTTEP's implementation of the Environmental Management System (EMS) is aligned with the ISO 14001 international standard. PTTEP requires all operating assets to implement and certify the ISO 14001 within two years after the execution of the production phase, which resulted in achievement of the latest ISO 14001:2015 certification for PTTEP's operating assets in Thailand and Myanmar from SOCOTEC certification (under United Kingdom Accreditation Service - UKAS). PTTEP develops SSHE Management System covered all E&P activities; exploration, production and decommissioning phases and major supporting activities; product transportation, waste management, logistics and supply chain management. For effective implementation, the corporate oversight of SSHE management system is in place which includes the requirement of SSHE due diligence process before, during and after a merger and acquisition (M&A) deal takes place, to ensure business partners' compliance with the Company's requirements.
PTTEP adheres to the Green Practice Roadmap one of sustainability strategic plans that supports the Company's environmental performance to achieve Target Zero. The roadmap contains work plans to reduce carbon and ecological footprints and simultaneously create enterprise values and promote the circular economy concept. The roadmap demonstrates PTTEP's commitment to achieve cleaner and more environmentally friendly petroleum exploration and production, through various environmental projects such as those aimed to reduce greenhouse gas emissions, raise energy efficiency, ensure green procurements and deliver green and lean transportation.
PTTEP assesses each project's environmental activities against regulatory requirements, the Company's standards and/or international standards. Such environmental assessment is a tool to identify and evaluate environmental issues and impacts. It helps in the setting of impact monitoring and mitigation plans. For all E&P project phases, throughout their lifecycles from exploration, production until decommissioning, PTTEP has followed all requirements specified in the Environmental Impact Assessment (EIA) and the Decommissioning Environmental Assessment (DEA) report (which includes those relating to social and health issues) for all E&P phases. The summary of the Company's EIAs and case studies appears in 39TCapital Project Management39T topic.
Stakeholders also play an important role in driving business towards success and this demands appropriate management of their expectations and agreed objectives. Stakeholder management is conducted through the Company's stakeholder management process or the EIA process. For decommissioning activities, the Company follows government guidelines and relevant laws. The process requires risk assessment in several dimensions; for example, environment, safety, technical and engineering, community and society, as well as finances and investment. Decommissioning is as crucial as exploration and production. As such, they are subjected to the same level of SSHE management.
Furthermore, PTTEP is committed to comprehensive reporting on environmental performance that covers for all activities, in line with the Global Reporting Initiative's Sustainability Reporting Standards (GRI Standards) and full reporting guideline on Oil and Gas Sector Disclosures (OGSD) for the "In Accordance - Core" option and the International Petroleum Industry Environmental Conservation Association (IPIECA)'s reporting guideline on international sustainability. The Company's data collection and reporting tool is the web-based 'environmental performance reporting system'. This reporting covers energy consumption, greenhouse gas emissions, air emissions, water withdrawal, water discharge, spills, and produced water management, as well as waste management. The up-to-date data can be analyzed, to enhance environmental management efficiency and ensure compliance with relevant laws and the Company's regulations.
For continuous improvement of environmental performance, PTTEP has reviewed and improved data collection and database to ensure its timeliness. The data first collected in 2010 till now is verified by an external party and it has been publicly disclosed in PTTEP's annual Sustainability Report. In addition, PTTEP also benchmarks its performance on climate change and water security against peers in the International Association of Oil and Gas Producer (IOGP), Dow Jones Sustainability Indices (DJSI), CDP (formerly Carbon Disclosure Project), and other organizations.
Climate Strategy and Targets
Climate change may impact on the environment and PTTEP's business, in term of more frequent natural disasters, stringent national and international policies and regulations, and a drive towards low carbon future.
PTTEP has continuously introduced actions to reduce and mitigate risks, including an increase in the investment proportion of natural gas as a cleaner transition energy and studies to find ways to reduce greenhouse gas (GHG) emissions. PTTEP aspires to become a low carbon organization, by setting a target to reduce GHG emission intensity by at least 25% in 2030 from 2012 base year. The target, covering all operating assets and petroleum support bases under its operational control, is aligned with the International Energy Agency (IEA)'s 2-degree scenario.
To achieve the target, PTTEP launched the GHG emission reduction projects by means of flare/excess gas recovery and utilization, energy efficiency improvement, production efficiency improvement and methane leak reduction. In addition, recognizing that greenhouse gas emissions will affect business expansion, PTTEP in collaboration with the PTT Group launches an internal carbon pricing scheme for investment decision-making process especially in projects that may emit significant GHG volume
PTTEP's operational transparency reflects in the inclusion of climate change strategy and performance in the annual reports and sustainability reports. PTTEP has also disclosed environmental and climate change-related performance to CDP since 2010. It has ranked at "Leadership Level" for the 7PthP consecutive years since 2014, reflecting its environmental stewardship compared to its peers.
As a company vision to become an "Energy Partner of Choice", PTTEP recognizes the importance of collaboration with other Thai and international organizations to create positive climate action. PTTEP has committed to engage with third parties including Thailand Greenhouse Gas Organization (TGO) on climate policy under UN Global Compact's Guide for Responsible Corporate Engagement in Climate Policy, PTTEP is seeking for opportunities to reduce or offset GHG emissions through various channels. For instance, PTTEP buys carbon credit in support of TGO's carbon credit market to offset the emissions for internal activities; launches a reforestation project to capture carbon, participates in TGO's Low Emission Support Scheme (LESS) by initiating energy efficiency projects and applies the 3R principle (reuse, recycle, recovery) in waste management.
In 2020, PTTEP successfully reduced GHG emission intensity by 13% compared to the base year 2012 and reduced GHG emissions from production processes by 315,215 tonnes of CO2 Requivalent.
Climate Risk Management
PTTEP takes risks that may result from climate change into serious consideration, treating it as the Company's emerging risk. In 2020, PTTEP assessed risks for timely improvement across all new operation sites and for compliance with modified requirements both at national and international levels. Climate change risks consist of physical risks and transition risks. Physical risks are direct impacts such as heat waves, heavy precipitates, tropical storms, drought and water-related risks. Transition risks are related to changes of risks of policy, legal, technology; market; and reputations. The assessment covers short-term risks (2020 - 2025), medium-term risks (2025 - 2035) and long-term risks (2035 - 2050).
In assessing physical risks, 3 levels of scenario are applied as guided by the Intergovernmental Panel on Climate Change (IPCC): aggressive mitigation scenario or representative concentration Pathways (RCP 2.6); strong mitigation scenario (RCP 4.5); and Business-as-usual (BaU) scenario (RCP8.5). The assessment of corporate physical risks in all scenarios and all timeframe is in between low to medium level.
On the assessment of transition risks, 3 levels of scenario are applied: stated policies scenario (SPS), sustainable development scenario (SDS) and IPCC's 1.5°C scenario. The first two scenarios are in line with International Energy Agency (IEA)'s impact assessment guidance and the last with IPCC's guidance. The assessment of corporate transition risks in all scenarios and all timeframe is in between low to medium level.
Based on the assessment, the Company is confident that its climate risk management is appropriate and aligned with the global target to hold temperature increase to well below 2 degrees Celsius. The Company closely monitors and tracks climate change that may affect corporate risk level, in order to manage risks with the balancing of the risk appetite level and corporate sustainable development
Strategy and Targets for Biodiversity and Ecosystem Services
PTTEP has committed to operate with minimal environmental impacts and integrated the impacts on biodiversity and ecosystem services into the business decision making process, by means of the promotion of the net positive impact on biodiversity and ecosystem services at all operational areas. To achieve the objective, PTTEP has set the targets as outlined below:
- Avoid operating in World Heritage sites as defined by UNESCO and achieve No-Net Loss of biodiversity in protected areas as defined by the International Union for Conservation of Nature (IUCN) by 2024
- Achieve Net Positive Impact of Ocean Biodiversity and Ecosystem Services (Ocean BES) value in domestic offshore operations by 2025 and all offshore operations by 2030, compared to the 2019 base year.
In order to ensure effective achievement on the targets, PTTEP developed the Biodiversity and Ecosystem Services (BES) Management Guideline in line with IPIECA's "A Guide to Developing Biodiversity Action Plans for the Oil and Gas Sector" and International Finance Corporation (IFC)'s Performance Standard 6: Biodiversity Conservation and Sustainable Management of Living Natural Resources. The management guideline has been implemented at all PTTEP operational sites since 2014, according to the following mitigation hierarchy:
- Conduct biodiversity and ecosystem system service risk assessment in different project phases.
- Develop Biodiversity Action Plan where there are high risks.
- Implement Biodiversity Action Plan.
- Monitor environmental impacts concerning biodiversity and ecosystem services.
- Consider biodiversity offsets, where there is a residual impact, to compensate potential loss of biodiversity values in order to achieve no-net loss.
Furthermore, PTTEP collaborates with external organizations such as Biodiversity-based Economy Development Office (BEDO) to assesses corporations' responsibility for biodiversity; as well as IPIECA-IOGP Biodiversity and Ecosystem Services Working Group (BESWG) and UN Environment Programme World Conservation Monitoring Centre (UNEP-WCMC), to organize the workshop on ecosystem services in E&P industry.
Biodiversity and Ecosystem Services Risk Assessment
PTTEP manages biodiversity and ecosystem service risks by integrating them into the Environmental Impact Assessment of all E&P projects as well as impose Biodiversity Action Plan at projects with a high level of biodiversity risks. The action plan is designed to prevent the loss of endangered species as well as protecting and restoring ecosystem services that might be impacted by the company's operations.
The biodiversity and ecosystem service risk management assessment, conducted in 2017 and reviewed in 2020, showed that no project possessed high biodiversity risks. Moreover, PTTEP has finished the voluntary Biodiversity Action Plan (BAP) for all operational sites that possess medium-level risks. The Company also organized workshops to enhance knowledge and understanding on biodiversity for personnel working in areas of moderate risk level.
In 2020, the Company also applied the Natural Capital Protocol and Social & Human Capital Protocol's net impact evaluation in monetary term in the assessment of environmental and social impacts from the Company's operations in Thailand and Myanmar. PTTEP also established reference values or baseline impacts using 2019 as the base year, to track the progress and identify success of the future projects.
Strategy and Targets for Spill Management
Zero spill is one of SSHE Target Zero. To achieve the target, PTTEP focuses on efficient incident management, by forecasting spill scenarios and preparing responses. PTTEP follows the principles of the Incident Management and Command System in responding to spills. The system helps establish the organizational structure and the response process, including documentation, equipment and resources, response approaches, and internal and external communications.
PTTEP's spill management plan is regularly updated and follows the Tier 3 Spill response system defined by the International Petroleum Industry Environmental Conservation Association (IPIECA) and International Association of Oil and Gas Producers (IOGP). The response system is as follows:
- Tier 1: Spills that require Asset capability and resources.
- Tier 2: Spills that require local and national resources, such as the Marine Department and Royal Thai Navy.
- Tier 3: Spill that require global and international response resources, in collaboration with Tier 2 resources.
Spill Risk Management
PTTEP manages the spill risk in compliance with laws/regulations and company risk management process for all E&P activities in order to ensure the potential risk from spill has been assessed and mitigated to "As Low As Reasonably Practicable or ALARP" level. For an effective spill management, those risks are audited and reviewed regularly.
Furthermore, the Company prepared the spill management plan and conducted emergency drills at a corporate- and project-level. This is to assess its preparedness and capability, as well as continuously improved the management plan. The Company has entered into agreements with response organizations in national and international levels, for prompt and appropriate management. The organizations include the Oil Industry Environmental Safety Group Association (IESG), the Petroleum Industry of Malaysia Mutual Aid Group (PIMMAG), and the Oil Spill Response Limited (OSRL). PTTEP, as a corporate member of IESG, provides supports to reinforce Thailand's spill management system. Such supports include participation in equipment test and annual as well as serving as a member in various committees
In 2020, PTTEP simulated the condensate spill scenarios from floating storage and offloading's (FSO) by applying the mathematical model to study stochastic and trajectory of potential spill, to prepare response approaches. PTTEP also organized spill management trainings for the Company's emergency response teams from both onshore and offshore operation sites.
In 2020, the Company's spilled oil and chemicals was at the rate of xxx 0.08 tonnes per million tonnes of petroleum production, a significant decrease from the previous years. This is a result of the cause analysis and implementation of site-specific incident prevention campaigns for Spill and Loss of Primary Containment (LOPC). PTTEP performance on spill rate has continuously been kept lower than peers or IOGP average at all times.
Strategy and Targets for Waste Management
PTTEP handles waste from its operations in compliance with the regulations and laws stipulated by the countries where PTTEP operates as well as the waste management hierarchy. The first priority is to avoid generating waste at source, by removing and reducing waste volume. Then, the emphasis is on the strategy to reuse, recycle and recover waste in accordance with the circular economy concept. Waste treatment and disposal are the last in the hierarchy to consider. PTTEP targets zero hazardous waste to landfill in 2020, zero industrial waste to landfill in 2025, and zero total waste to landfill in 2030.
Further to its waste management with hierarchy above, PTTEP has sought and identified the best alternatives for waste management in E&P activities, in line with targets and to support the company's waste management beyond local regulation requirements. The company has continuously improved the waste management alternatives for elevated standards, as well as studying and researching methods for waste upcycling and create added value to both the community and governmental sectors. PTTEP has conducted the study on the use of drilled cuttings, as our significant waste generated from our drilling activities, as alternative material for road construction and maintenance under the Pilot Recycled Drill Cuttings Road Project. In 2020, the pilot project has been completed for 168 meters road pavement at the PTTEP Technology and Innovation Centre (PTIC).
PTTEP also regularly conducts audit and review of the waste management systems at operating sites and those of waste treatment and disposal contractors, to ensure compliance to legal and the Company's requirements. This helps contractors improve their waste management areas and processes.
PTTEP promotes the optimization of natural resources and energy consumption, while remaining environmentally friendly, at Headquarters in Bangkok and provincial offices. the Company adopts the Green Office concept from Department of Environmental Quality Promotion (DEQP)'s to promote the reduction in energy and natural resource consumption, waste, and greenhouse gas emissions. This well supports the growing environmental conservation awareness to the Company's personnel.
Strategy and Targets for Water Resource Management
In management of water resource, PTTEP commits to avoid operating in areas at risk from water scarcity and ensure that there is no impact on the community and water users. The Company also targets to zero produced water discharge to the environment. PTTEP commits to emphasize on reusing produced water as non-fresh water to improve oil recovery capacity and reduce consumption of limited freshwater, preserving the freshwater resource for community's consumption.
PTTEP has developed the action plan to control water consumption, by engaging with local stakeholders for their opinions and clearly communicating the Company's water management measures to relevant suppliers and contractors.
The Company demonstrates its commitment to transparency and trustworthiness by disclosing water performance in annual reports and sustainability reports. Water performance has also been reported to CDP since 2017 and PTTEP has been ranked at "Leadership Level" in 2017 and has ranked at "Management Level" since 2018 as a reflection of the Company's environment stewardship compared to its peers.
Water Risk Management
Water is crucial resource to petroleum exploration and production activities. PTTEP thus conducts an assessment on risks related to water resources management in all operating areas, to prevent the issues on water quality and water scarcity in neighboring communities. The Company also improves the water efficiency and water conservation and emphasize on the importance of leakage detection programs, maintenance, and the reduction of water losses from unnecessary activities.
In 2013, PTTEP developed the water risk assessment tool, to evaluate water risk management at all operating sites. The assessment was aimed at extending the risks to cover those related to water scarcity, increase in water fees, laws and regulations related to water consumption, as well as possible conflicts with stakeholders. The assessment utilizes actual data gathered onsite and forecasts from internationally-recognized tools such as IPIECA Global Water Tool for Oil and Gas, WRI Aqueduct, and WWF Water Risk Filter. Notably, the assessment focused on present and future risks (for 2020 and 2030, respectively) and the results were used to define risk management target and approaches.
In 2018, PTTEP reviewed and updated the water management guideline which identified recommendations on water-related risk assessment, performance reporting, targeting, and wastewater management best practices.
During 2018 - 2019, the Company reviewed water risk assessment and updated the analysis on possible impacts from water scarcity, increase in water fees, legal and regulatory amendments, water demands, and conflicts with stakeholders. The results showed that the Company is not currently at risk or facing significant impacts in any scenario at all assessed operations. However, the assessment on water stress area by WRI Aqueduct water risk atlas indicates the 3 operations assets located in area with water stress; S1 & L22/43, Suphanburi and Sinphuhorm Natural Gas Production assets. The Company had initiated the water resources conservation and water bank projects with local communities in water stress area.
Produced Water Management
PTTEP's projects located in Thailand have achieved zero produced water discharge since 2010, through injection of produced water back into depleted petroleum reservoirs. Though produced water volume tends to increase in line with production activities and reservoir age, PTTEP has effectively maintained the water injection capacity. Sinphuhorm project was the exception as it resorts to another technique, as described in its EIA, which also results in zero discharge. In 2020, the Company successfully achieved the zero produced water discharge for operations in Thailand by injecting xxx99.4% of produced water generated back to reservoirs and xxx0.6% of produced water managed according to legal requirements. For oversea operations, PTTEP manage the produced water in compliance with regulations/requirements of such countries.
Environmental Impact Assessment/ Social Impact Assessment
PTTEP requires all projects, in Thailand and abroad, to obtain approval in the Environmental Impact Assessment (EIA) before commencement the exploration and production activities and the Decommissioning Environmental Assessment (DEA) before commencement the decommissioning activities. EIA and DEA apply the principles in predicting positive and negative impacts of a project on the environment and local communities. This is to make sure that the possible impacts are thoroughly considered in the planning stage to prevent negative impacts; the impacts are monitored; and mitigation measures are prepared in advance. In Thailand, EIA preparation is overseen by the Environmental Impact Evaluation Bureau (EIEB), a unit under the Office of Natural Resources and Environmental Policy and Planning (ONEP) which endorses EIA. For DEA preparation, it is under the Department of Mineral Fuels (DMF) approval.
EIA and DEA reports also contain concerns raised during an opinion survey, as well as suggestions to prevent and mitigate possible impacts. Such concerns are analysed, to define appropriate measures. In 2020, PTTEP conducted community engagement activities at 3projects under exploration and development phase, 16 projects under production phase and 3 projects under decommissioning phase, considering 100% completion.
Approved EIA reports (including Social Impact Assessment or SIA) are published on the website of the Office of Natural Resources and Environmental Policy and Planning (ONEP). Visit the website of ONEP to study PTTEP's EIA reports. For DEA activities, which considered as a new activity in Thailand for last couple years, the DEA reports are under the study and approval process by DMF.
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