Corporate Governance and Business Ethics
Importance and Mission
PTTEP believes that business guided by PTTEP's sustainability framework will enable the Company to achieve its vision of becoming the Energy Partner of Choice with conducting our business with responsibility and resilience in response to energy transition while aiming to create sustainable values to for all stakeholders. With this belief, the Company lays out the sustainability framework as a common working approach which comprising 3 key components:
- High Performance Organization (HPO)
- Governance, Risk Management, and Compliance (GRC)
- Sustainable Value Creation (SVC)
GOALS
PTTEP is committed to conducting its business with transparency and effectiveness by adhering to the good corporate governance principles, maintaining robust risk management and internal control system as well as strictly conforming to applicable laws and regulations with the following goals:
Achieve zero fraud and corruption and zero non-compliance
Achieve high-impact risk identification with effectiveness mitigation
Achieve 100% improvement for control deficiency
Increase GRC Maturity Level to level 4+
Management Approach
PTTEP upholds business transparency and efficiency with adherence to governance principles, appropriate risk management and internal control as well as strict compliance with relevant laws and regulations under the foundation of Governance, Risk Management and Compliance or GRC.
Governance, Risk Management and Compliance (GRC)
PTTEP sees the need of the integration of Governance, Risk Management and Compliance (GRC) to warrant the effectiveness of the Company’s operations and adherence to regulations, rules, policies and ethics. This will establish confidence among directors, executives, all staff members and stakeholders and drive the Company towards corporate goals in a sustainable manner through 2 essential GRC long-term strategies, namely, Smart Assurance and Mindful GRC. This approach focuses on driving GRC by effective digital technology and fostering GRC mindset to raise awareness and encourage GRC practices in daily operation and key decision making. PTTEP is also willing to extend and share the GRC practices to its business alliances and interested organizations. The collaboration among teams from Governance, Compliance, and Internal Control unit and Risk Management unit has been established to drive GRC-promotion programs throughout the Company that highlight governance, risk management and compliance (GRC Management System) which the governance structure is designed accordingly to the Three Lines Model as follows:
Three Lines Model
First Line Roles
Second Line Roles
Third Line of Roles
External independent experts are entrusted to regularly evaluate the Company’s GRC performance. For instance, GRC Maturity Assessment and the assessment of Good Corporate Governance. Internal control assessment is also carried out, guided by the framework of the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The GRC performance is also audited by the Third line of defence or the Internal Audit unit in accordance with risk levels at a particular period. In 2023, PTTEP found zero non-compliance incidents with significant impacts on PTTEP’s business.
More information on risk and crisis management and compliance is available at:
Business Ethics
PTTEP realizes the significance of Corporate Governance (CG). The Board of Directors and executives are required to take the lead and be role models. They must provide suggestions, communicate and promote the knowledge and understanding about CG and PTTEP's Business Ethics among employees and other related organizations.
Find further information regarding PTTEP's CG practices involving, for example, Company's By-Laws, Good Corporate Governance and Business Ethics of PTTEP Group, Board of Directors, Reporting and Whistleblowing Regulation, CG Reporting and CG Assessment in Corporate Governance and Business Ethics webpage. Opinions and recommendations can also be sent directly to independent directors via this email address: IndependentDirector@pttep.com , or directly contact our Corporate Secretary at CorporateSecretary@pttep.com .
Anti-Corruption Measures
PTTEP's anti-corruption policy is part of PTTEP's Corporate Governance and Business Ethics, highlighting the Company's zero tolerance to all forms of corruption and without exception and full compliance to the anti-corruption laws in the countries of operations. Details of corruption prevention measures appear in the annual report's Corporate Governance Section and the Company's website, Corporate Governance and Business Ethics . (Section 3 : CG and Business Ethics, 7. Anti-Fraud and Corruption).
Complaint Handling
PTTEP establishes the whistleblowing and protection protocol, to ensure an efficient, transparent and fair complaint handling process which meets international standards. Complainants can be employees or outsiders who witness wrongdoings. Complaints can be filed by post; direct email to the Board of Directors and head of corporate governance unit under Corporate Secretary’s office; or via PTTEP’s complaint system on the corporate website. The corporate governance unit under Corporate Secretary’s office will be the complaint-handling center, as guided by the Company’s “Whistleblowing Regulation”. All are assured that the complaints will be handled in a transparent and fair manner, according to the specified procedure and timeframe as shown below.
- The complaint screening committee determines whether there is sufficient detail in a report to initiate an investigation and to appoint investigators within 7 working days.
- The investigation shall be completed within 30 working days. If necessary and approved by CEO, the period can be extended (each extension must not exceed 7 working days for straightforward cases and 30 working days for complex cases). Involved investigators must not have any conflict of interest with the complaints and all complaints filed to the aforementioned channels must be reported along with investigation results to the Corporate Governance and Sustainability Committee and/or the Audit Committee (depending on the nature of each case) and then the Board of Directors, respectively.
PTTEP also provides the appropriate protection for whistleblower or involved persons. For example, personnel must not be disadvantaged by these actions: change of job position or any other form of discrimination. All related information will be kept confidential. A person who fails to comply with these regulations or commits misconduct shall be proceeded with disciplinary action or legal action as the case may be.
In 2023, PTTEP received a total of 33 complaints through the channels according to the Whistleblowing Regulation and Human Resources Management Policy. Considering the sufficiency of preliminary supporting evidence, 11 complaints were forwarded for investigation. The investigation of all 8 was completed while 3 cases are under investigation process (Completed in Quarter 1/2024).
After completing the investigation of these 8 accepted cases pursuant to the Regulation, there were 5 cases that has no offenses while there were 3 cases of wrongdoing. There were 2 cases which has been considered a disciplinary offense pursuant to CG&BE. PTTEP has given verbal and written warning to the offenders. And 1 case was related to the inappropriate behavior of the staff and found that the case constituted disciplinary offenses pursuant to Human Resources Management Policy and Business Ethics on Human Resources. PTTEP has given written warning to the offender.
The corporate governance unit reported the investigation results to complainants, either the Audit Committee or the Corporate Governance and Sustainability Committee, and the Board of Directors.
See comparative reporting of annualized complaint data here: Governance, Risk Management and Compliance Performance Data.