Importance and Mission
PTTEP values social development as well as the conservation of natural resources and the environment. All stakeholders are regularly engaged and informed through meetings, activities and social development projects conducted across our operating areas. A long-term social development strategy is in place to build trust and gain acceptance from community and other stakeholders covered by the community relations management and corporate social responsibility policies. PTTEP strives to gain trust and acceptance and supports undertakings that will bring benefits to the Company and society as a whole.
Recognizing the importance of sustainable development, PTTEP is committed to operating with a balance of 3 key components – business, social and the environment, having the United Nations Sustainable Development Goals (UN SDGs) as business guidelines. The relevant UN SDGs are as follows.
1. Conserve and Sustainably Use the Oceans and Marine Resources for Sustainable Development
PTTEP restores marine natural resources of the Thai sea, aligned with SDG14, through the Aquatic Animal Hatchery Learning Center project and the establishment of Conservation Network to raise awareness of sustainable use of resources. The company has planned to set up a Sea Turtle Hospital in Songkhla Province and support the planting and maintenance of a mangrove forest. This will become a nursery and habitat for numerous marine larvae. The company further expands the success of these projects into its other operating sites under the "Ocean for Life" strategy.
In 2020, PTTEP's social development projects under the "Ocean for Life" strategy was being the highlight. The highlighted projects encompassed environmental and ocean waste management, ecosystem preservation, marine resource enhancements. In addition, the project supported the local fishing community with capability building in term of products and marketing for local fishermen in operating sites to strengthen the local economy.
2. Good Health and Well Being
PTTEP takes care of the health and sanitation of underprivileged communities who have limited access to medical services. To promote good health and well-being for people of all ages, the Company has implemented LKC (Layanan Kesehatan Cuma-Cuma) or a free clinic project in the Indonesia, PTTEP Mobile Health Check Project in Myanmar, Lan Krabue Hospital in Thailand, and Community Nurse Project for the benefits of communities and the general public, aligned with SDG 3.
3. Affordable and Clean Energy
PTTEP promotes community's sustainable access to cost energy through the development of alternative energy, including the Waste to Energy Project, which is aligned with SDG 7. Under the project, household waste is used as cooking gas. It does not only manage kitchen waste efficiently but also cut household expenses. On top of that, communities get organic fertilizer. Succeeding in Thailand, the Company replicated this project for communities in Zawtika Project in Myanmar.
4. Equality Education
PTTEP supports equal and thorough access to education by providing scholarships for studies in elementary to undergraduate levels to students at all operating areas in Thailand and overseas, which is aligned with SDG 4. The scholarships are extended on an annual basis until the receivers finish undergraduate-level studies. Furthermore, the Company supports SIOLA, the preschool development and Social Enterprise project in Indonesia. In Thailand, PTTEP in collaboration with PTT group established Kamnoetvidya Science Academy School (KVIS) and Vidyasirimedhi Institute of Science and Technology (VISTEC) to step up Thailand's studies and research on science and technology which will strengthen the country's competitiveness and smoothen its path towards sustainable development.
Overview, Expectations and Management Approach towards Corporate Social Responsibility
To reflect our responsibility for society and community, PTTEP has established a social responsibility policy and framework for the implementation by PTTEP and subsidiaries to ensure all projects will truly benefit society and community. PTTEP established various policies and guidelines, such as the corporate social responsibility policy, community relations management policy, and philanthropy guideline, which govern activities at all operating sites. Moreover, the Company gives proper regard to local community's health, safety, security, and the environment and support fundamental human rights. Our policy is to put more resources into social development projects than on donations. PTTEP's strategic social development projects are categorized as follows:
Corporate Social Responsibility Project
The project strategically planned for implementation in 2 levels: the macro level and the micro level.
1. Macro Level
PTTEP has set a 10-year social development project under the "Ocean for Life" strategy and roadmap (2020 – 2030) with the aim to increase biodiversity and restore resources in the Thai seas, while creating jobs and improving community income. The projects, in line with "UN SDG 14: Conserve and sustainably use the oceans, seas and marine resources for sustainable development", cover communities in 17 provinces around the Gulf of Thailand. The projects are carried out under 3P framework as follows:
To protect the seas through waste management and preventing them from land pollution.
To preserve and restore marine and coastal resources back to a sustainable status through mangrove reforestation and aquacultures of both economic and endangered species.
To provide opportunities in developing the local economy by adding value to marine products to allow better quality of life and well-being for coastal communities along the Gulf of Thailand
Social development under the "Ocean for Life" strategy and 3P framework that reflects PTTEP's commitment to preserving marine resources and improving the quality of life of communities dependent on marine resources is implemented through the following six projects: Ocean Waste Management Project, Mangrove Reforestation Project, Aquatic Animal Hatchery Learning Center Project, Sea Turtle Conservation Project, Coastal Conservation Area and Fish Home Project and Seafood Product Value Enhancement Project.
The indicators and performances of the corporate social responsibility projects in macro level are presented in an example project.
Aquatic Animal Hatchery Learning Center Project: The project hatches and returns baby crabs to the sea, so that they become a sustainable source of income for the community and align with UN SDG 14. PTTEP funded the construction and operation of five hatcheries and has plans to expand into Aquatic Animal Hatchery Leaning Centers in other areas in the future. The project currently has 1,600 members in its network and each enjoyed an increase in annual income by 57,000 baht per person. The project's SROI is 2.29: 1.
2. Micro Level
PTTEP has implemented its corporate social responsibility projects in the operation areas to uplift the quality of life for communities. The projects categorized under four themes – Basic Needs, Education, Environment and Culture, underlining the necessity that each project and activity must improve the local community's quality of life and genuinely address the locals' needs in order to gain support from the local community. Aligning and supporting the Company's business driver "Zero Disruption to Operations", the objectives are to gain stakeholders' trust and support for PTTEP's operations and to achieve the "Support" engagement level as well as to maintain business continuity without conflict or protests from communities.
Creating Shared Value
Creating Shared Value is a strategic management approach to achieve competitive advantages and simultaneously to build the capabilities of community where we operate, by addressing local needs and challenges with a business model.
PTTEP deploys strategic assistance, to create shared values for both the Company and society. Existing corporate social responsibility projects that can create shared value are selected. Integrated with PTTEP’s expertise and business network, these projects support target community or stakeholders. Under the Technical Capability Building and Development Project in Myanmar, technicians have been developed for the benefits of local industries. Under the Flare Gas Utilization for Local Agricultural Product Processing Project, PTTEP worked in collaboration with the Department of Mineral Fuels, Ministry of Energy and the Nong Toom Community in Kong Krailat District, Sukhothai Province located in S1 project. Excess gas from the Nong Toom production site which was burnt according to the standard excess gas handling process is used as fuel for agricultural product processing.
A social enterprise is an organization that applies business best practices in tackling social and environmental issues. A social enterprise earns mainly from products and services and does not depend on donations. Profits are reinvested to grow its business.
PTTEP together with the PTT Group has set up Sarn Palung Social Enterprise Company Limited (PTTSE) with an aim to promote social enterprises. Under the Social Enterprise - Café Amazon for Chance Project, the venture is designed to lead social enterprises in tackling, solving and developing community and the environment in a continuous and sustainable way. That will hence improve the quality of life in the long run. In additions, the School-Based Integrated Rural Development Project (School-BIRD) has been implemented with the aim to develop the schools as a models of learning hub and a center for economic and social enterprise.
Corporate Citizenship and PTTEP Group Wide Social Development Strategy
As a good corporate citizen, PTTEP formulates a group wide social development strategy which is implemented at all operating sites globally for conformity. The strategy takes into account the specific needs of communities at each site.
PTTEP's social and community development projects were carried out with mutual understanding and through strategic communications, to demonstrate our concerns for stakeholders at operating sites. The projects provide knowledge and understanding of best exploration and production practices and employees are involved in the sustainable development of society and community. PTTEP conducts the Stakeholder Commitment Survey to evaluate stakeholder engagement level and the results are used to develop community relations work plan as a way to gain acceptance and support for the Company's operations. PTTEP classifies stakeholder commitment into four levels - 1. Awareness, 2. Understanding, 3. Engagement and 4. Support - and aims to achieve the "Support" level from key stakeholders. To achieve the target, PTTEP corporate social responsibility and philanthropic activities will be deployed to improve the quality of life of stakeholders.
PTTEP highlights strategy under Stakeholder Value Creation for social development projects. The undertakings also emphasize basic needs and the transformation of potential corporate social responsibility (CSR) projects to Creating Shared Value (CSV). Meanwhile, Social Enterprise projects have been implemented continuously. All are in line with UN SDGs.
To ensure the efficiency of social development projects and the projects truly benefit stakeholders, PTTEP runs an analysis on Social Return on Investment (SROI) of the projects every 3 years. To date, the analysis of 24 projects has been completed. In addition, the projects having score under 2 times of project implementation cost, the Company will have an improvement plan to gain a better SROI result.
PTTEP has carried out social development projects in several patterns, from philanthropic donations to long-term activities.
The COVID-19 pandemic in 2020, causing a health crisis in Thailand and across the globe. PTTEP accordingly adjusted its operations and social development projects accordingly to the government public health policies of all countries of operations under the "Fight against COVID-19" project. PTTEP has applied the exploration knowledge and technology in creating innovations that helped protect medical personnel and prevent the proliferation of the virus. The Company contributed 44 million THB directly and indirectly to hospitals, educational institutions, and organizations in Thailand and other countries to support the fight against COVID-19. A part of the contributed innovations is the development of negative pressure patient transfers and mobile negative pressure boxes to Navamindradhiraj University's Faculty of Medicine at Vajira Hospital which has further distributed them to 87 hospitals across the country. Other endeavors include supporting the production of the Chula COVID-19 Strip Test, development of VISTEC Test Kit Diagnostics, allocation of funds to Thammasat University Hospital for the purchase of an ambulance and a ventilator, blood donation by PTTEP volunteers, distribution of PPE suits and masks to hospitals and the general public, donation of 5,000 liters of pure alcohol to Chulalongkorn University for hand sanitizer making for the general public, donation of Xterlizer UV Disinfection Robot to Department of Disease Control, activities to raise awareness on the prevention of COVID-19, and support on the development of the Shield Protecting Spray, a spray to be applied on masks to increase its protection effectiveness against dust and viruses. Last but not least, PTTEP provided funds and protection equipment to organizations in the countries where PTTEP's exploration and production is located, such as the containment center in Myanmar, the Relief and Recovery Fund for Malaysia, and the Office of the Governor of Jakarta in Indonesia.
After public health measures against COVID-19 were eased, PTTEP resumed its social, environmental and donation plans while strictly practicing COVID-19 prevention guidelines as follows.
- On contributions to the environment, beach clean-ups and ocean waste management; donation of medical lasers for sea turtle treatment; support to the World Sea Day in 2020.
- On career promotion and income generation, PTTEP organized career promotion and skill training and supported small and medium enterprises (SMEs), to help restore community economy affected by COVID-19.
- On contributions to quality of life, the Company funded the construction of an in-patient building for Lan Krabue Hospital in Kamphaeng Phet Province; provided healthcare vehicles to hospitals in operating areas; organized health check-ups for communities; distributed disaster relief supplies victims in 17 provinces in the northern region through Third Army Area; and organized blood donations for personnel and partners at Headquarters and operating sites.