Sustainability Framework and Long-term Target
Sustainability Journey
PTTEP set sight to be a sustainable organization since its inception in 1985. The journey started with a goal to be a "green organization" to which environment stewardship and management was a priority. The sustainability concept that involves Environmental, Social and Governance elements was subsequently applied and in 2011, PTTEP participated in the United Nations Global Compact (UNGC), demonstrating our commitment to uphold the UNGC 10 principles that highlight 4 main aspects - human rights, labor, environment and anti-corruption. PTTEP has submitted the Communication on Progress to the UNGC annually since 2012 up to the present.
Green Organization
- Emphasis on environmental stewardship and management
- Participate in Thailand Business Council for Sustainable Development (TBCSD) since 1993
ESG Principles
- Apply ESG principles across the organization
- Participate in the United Nations Global Compact (UNGC) since 2011
Outside In
- Align with Global Reporting Initiative Standards: GRI Standards and IPIECA’s Sustainability Reporting Guidance for the Oil and Gas Industry
- Adopt the United Nations’ Sustainable Development Goals (UN SDGs) and Sustainability Accounting Standards Board's SASB Materiality MapTM for Oil & Gas – Exploration & Production Industry as inputs of materiality assessment for further development of Sustainability Framework and Strategy
- Apply international sustainability assessment criteria such as S&P Global, MSCI, Moody’s, Sustainalytics, FTSE4Good, etc.
Inside Out
- Develop Sustainability Framework and Strategy
- Change PTTEP vision to Energy Partner of Choice
- Announce PTTEP Sustainability Statement as our commitment to conduct our business to ensure sustainability
Best Practice
- Take guidance from the Task Force on Climate-related Disclosures (TCFD) recommendations
- Initiate study and preparations for adopting IFRS Sustainability Disclosure Standards
- Incorporate elements of the Taskforce on Nature-related Financial Disclosures (TNFD) recommendations where applicable
PTTEP’s sustainability reporting aligns with Global Reporting Initiative Standards (GRI Standards) and IPIECA’s Sustainability Reporting Guidance for the Oil and Gas Industry, while also taking guidance from the Task Force on Climate-related Disclosures (TCFD) recommendations and the Taskforce on Nature-related Financial Disclosures (TNFD) recommendations where applicable. Moreover, we are in the process of studying and preparing for the adoption of IFRS Sustainability Disclosure Standards. PTTEP has adopted the United Nations’ Sustainable Development Goals (UN SDGs) and Sustainability Accounting Standards Board's SASB Materiality MapTM for Oil & Gas – Exploration & Production Industry as inputs for materiality assessment and development of Sustainability Framework and Strategy and several international sustainability assessment criteria, like S&P Global, MSCI, Moody’s, Sustainalytics, FTSE4Good, etc. as part of our sustainability management.
In 2019, PTTEP formulated Sustainability Framework and set clear long-term targets (2030) in alignment with the Company’s key strategies. Under the inside-out approach, PTTEP strived for impressive performance on strong business foundation, to deliver sustainable values to society (From We to World).
In 2020, the Board of Directors made an important step in pushing the organization's sustainability for concrete implementation. The Sustainability Statement was formulated to ensure common understanding among employees and other stakeholders. Moreover, the Corporate Governance and Sustainability Committee is in place to establish policies, targets, and workplans for good corporate governance and business ethics; and sustainability. The committee is also tasked to promote PTTEP’s overall sustainability implementation, including monitoring, evaluating, and disclosing sustainability performance to stakeholders, through committee meetings at least 4 times a year.
Sustainability Statement
PTTEP’s sustainability means being a responsible and resilient organization. We aim to embrace energy transition and create sustainable value to the Company and our stakeholders with commitment to achieving Net Zero Greenhouse Gas Emissions by 2050. Our Sustainability Framework is based on 3 pillars: High Performance Organization (HPO); Governance, Risk Management and Compliance (GRC); and Sustainable Value Creation (SVC).
While growing our business through the gas value chain, we will diversify beyond E&P with focus on technology and innovation, decarbonization, and future energy. Our competitiveness is driven by robust operations and efficiency improvement. We strive to become a GRC role model and zero incident organization. At PTTEP, we operate responsibly to ensure business sustainability with due care for the community, society and the environment.
Approved by PTTEP's Board of Directors on August 19, 2022
Sustainability Framework and Long-term Target
Sustainability Framework
PTTEP has a firm belief that the "Right Balance" of economic, social, and environmental aspects lead to a strong foundation for business sustainability. We have then developed "Sustainability Framework" to steer our business operations. This framework plays a pivotal role in ensuring business continuity to promote energy security while safeguarding both society and the environment. At PTTEP, we recognize the importance of building sustainability from within by fostering strong business performance on a robust business foundation. The goal is to deliver long-term value to all stakeholders while contributing to the sustainability of the society as a whole (From We to World), aligned with our vision to become the “Energy Partner of Choice”.
The Sustainability Framework emphasizes High Performance Organization (HPO), Governance, Risk Management and Compliance (GRC), and Sustainable Value Creation (SVC). The framework supports 17 United Nations Sustainable Development Goals (UN SDGs), focusing on Goals 3, 7, 8, 9, 12, 13, 14, 15 and 16 which are directly related to the Company's strategies, business operations, and long-term targets.
Emphasizing continuous performance improvement to become more effective, efficient, and productive in response to the energy transition with a focus on technology and innovation, decarbonization and future energy.
Emphasizing transparent and efficient operations for the organization's stability and sustainability through governance, appropriate risk management, and internal control as well as strict compliance with relevant laws and regulations.
Emphasizing long-term value creation for all stakeholder groups through organizational sustainability, responsible operations, natural resource conservation, environmental rehabilitation as well as community and social development.
Materiality Assessment Process
PTTEP assessed and reviewed material topics on sustainability including ESG issues based on Double Materiality approach, considering both the significance of financial impacts related to risks and opportunities, within the Company’s sustainability context, as well as the significance of the Company’s impacts on environmental, social (including human rights), governance, and economic aspects, under the reporting frameworks of the Global Reporting Initiative Standards (GRI Standards), from the perspective of eight key stakeholder groups: (1) Government Agencies and Regulators (2) Suppliers and Contractors (3) Customers (4) Employees and Directors (5) Shareholders and Financial Institutions (6) Business Partners and Joint Ventures (7) Communities and Society (8) Media. The material topics reflected national and international sustainability trends and were aligned with the United Nations Sustainable Development Goals and Sustainability Accounting Standards Board’s SASB Materiality MapTM for Oil & Gas – Exploration & Production Industry. The materiality assessment results served as part of the crucial inputs for shaping and improving corporate strategies. These results were also integrated into the Enterprise Risk Management process, empowering PTTEP to proactively address any risks associated with the Company’s material sustainability topics. The assessment process can be summarized as follows:
- 1 Identifying Material Topics
- Select preliminary material topics by considering the external context to ensure coverage of ESG dimensions, such as global trends and business practices within the same industry group. The process also involves reviewing the internal context across the organization’s entire value chain, including all business activities, business relationships, sustainability context, and all stakeholder groups, to identify issues relevant to the Company.
- 2 Identifying Actual and Potential Impacts
- Identify actual and potential impacts of material issues both positive and negative, in the short and long term, covering all PTTEP’s business activities throughout the value chain. The scope includes the Company’s environmental, social (including human rights), governance, and economic impacts. The impact assessment is conducted through interviews with relevant stakeholders and the collection of additional perspectives through an online survey, on the Company’s impacts for each material topic.
- 3 Assessing the Significance of the Impacts
Based on the principles of double materiality, the assessment method is shown as follows:
- Analyze impacts, including both risks and opportunities, related to the Company’ sustainability context.
- Assess and determine the significance of identified impacts from stakeholder engagement by considering two dimensions: (1) severity (scale, scope, irremediability) and (2) likelihood of the impacts.
- 4 Prioritizing the Most Significant Impacts
- Use the results of the impact assessment for each material topic to prioritize material topics based on two dimensions, covering the significance of the Company’s environmental, social (including human rights), governance, and economic impacts, as well as the significance of financial impacts related to risks and opportunities within the Company’s sustainability context.
- Validate key material issues against external professional views covering ESG dimensions. Then, combine the impact score from expert testing with the score obtained from stakeholders.
- Group interconnected material issues into material topics and submit them to the Management Committee for approval and to the Corporate Governance and Sustainability Committee for acknowledgement.
- Incorporate material topics as part of the key inputs for shaping and enhancing the Company’s sustainability strategy.
- Gather data on sustainability performance across all material topics for public disclosure through diverse channels to efficiently respond to each stakeholder group. Then, collect feedback and recommendations from relevant stakeholders to improve the efficiency of business operations.
2025 Material Topic
The details of the targets and annual performance summary of material topics can be accessed on PTTEP website under "Performance Summary of Material Topics"
Corporate Strategy and Sustainability Long-term Target
PTTEP is committed to delivering sustainable value from within to support wider society (From We to World) and supporting the UN Sustainable Development Goals (SDGs) while considering the benefits for all relevant stakeholders. Our corporate strategy is formulated with a focus on ensuring energy security and business resilience to address the ongoing global crisis and navigate the energy transition, together with environmental conservation. These efforts align with the three pillars of the sustainability framework: HPO, GRC, and SVC. Therefore, PTTEP has established sustainability strategies and long-term targets encompassing the Company’s focused Sustainable Development Goals as follows:
Sustainability Strategies under HPO
Drive Value
Ensure energy security and expand international growth
- Maximize supply from three gas corridors
- Drive cost competitiveness through operational excellence
- Expedite development projects
- Pursue growth in Southeast Asia and the Middle East
Decarbonize
Balance Greenhouse Gas (GHG) Emissions towards Net Zero commitment
- Execute Carbon Capture and Storage (CCS) projects
- Explore GHG reduction initiatives
- Foster carbon credit portfolio
Diversify
Drive country energy transition and invest internationally
- Invest in Net Zero business (CCS as a service, offshore wind power, hydrogen)
- Drive energy transition in Thailand
- Build a resilient portfolio
Sustainability Strategies under GRC
Smart Assurance
Optimize the integration of GRC into business processes, driven by digital technology
- Enhance the GRC process through the GRC operating model
- Integrate GRC via the data foundation and linkage across PTTEP
Mindful GRC
Embed GRC mindset among stakeholders in daily operations and decision making
- Implement a GRC culture company-wide focusing on anti-corruption and risk management
- Extend GRC practices to key stakeholders, e.g., contractors/suppliers
Sustainability Strategies under SVC
Stakeholder Management
Elevate stakeholder engagement for risk mitigation and opportunity creation
- Build awareness, understanding, and confidence among stakeholders
- Integrate networking organizations and enhance the engagement process effectively
- Enhance stakeholders’ commitment to drive organizational goals
Circular Model for E&P
Enhance operational efficiency while minimizing environmental impact
- Continuously improve waste management alternatives to elevate management system standards
- Maximize the value of existing resources for prolonged reuse
Ocean for Life
Protect marine ecosystems and create lasting social value
- Sustainable ocean-friendly operations
- Ocean health monitoring and blue carbon studies
- Protect marine ecosystems
CSR
Build community trust and strengthen stakeholder collaboration
- Enhance nature-based solutions to support climate adaptation
- Enrich community well-being and create long-term social value through corporate social responsibility initiatives
Sustainability (ESG) Long-term Target and SDGs in Focus
- Pursue sustainable growth in focus areas
- Maintain reserves to production ratio (R/P) to be greater than 5 years
- Maintain competitive unit cost for E&P
- Allocate 10% of PTTEP's total capital expenditure (CAPEX) budget for transition business during 2024-2030
- Achieve Net Zero GHG Emissions by 2050 (Scope 1 and Scope 2) of E&P business under PTTEP's operational control
- Reduce GHG emissions intensity by at least 30% within 2030 and 50% within 2040 (from base year 2020)
- Reduce methane emission intensity to less than 0.2% by 2030*
- Reuse at least 50% of main structures, with safety awareness and efficient conditions by 2030
- Achieve zero waste to landfill by 2030
- Deliver Net Positive Impact (NPI) for New E&P Operated Projects in high-risk area from 2026 onwards
- Avoid operation in World Heritage sites as defined by UNESCO
- Achieve No Net Deforestation for New E&P Operated Projects from 2026 onwards
- Conserve and restore 200,000 rai of forestation by 2030
- Increase more than two times the Ecosystem Services (ES) value through CSR Programs by 2030, Compared to the 2024 level
- Achieve zero oil and chemical spill
- Establish more than 22,000 conservation networks by 2030
- Achieve zero incidents (Target Zero)
- Achieve stakeholder engagement level at two highest levels, Support and Advocacy, as appropriate for stakeholders in each group.
- Deliver social value to more than 1,300,000 beneficiaries by 2030
- Achieve 50% increase in income of focused communities participating in PTTEP projects, compared to baseline data before PTTEP project implementation
- Achieve zero fraud and corruption and zero non-compliance
- Achieve high-impact risk identification with effective mitigation
- Achieve 100% improvement for control deficiency
- Increase GRC maturity level to level 4+ (Transform and Advantaged)
Supporting SDGs
*In accordance with the calculation principles of the Oil & Gas Methane Partnership 2.0 (OGMP 2.0).
Sustainability Collaboration and Networking
Collaboration and networking play a crucial role for both PTTEP's current business operations and future growth. We, therefore, emphasize the importance of establishing business, social and environmental collaborations and networks with relevant parties to support the Sustainable Development Goals of Thailand and the United Nations; as well as PTTEP's vision of "Energy Partner of Choice".
Elevating Our Standards to a Global Level
PTTEP participates with relevant associations and agencies aiming at driving better economic and societal development by taking a support role. As respectable member in the in oil and gas industry, the Company focuses our contributions on associations and organizations supporting two main objectives: (1) develop and promote responsible practice for oil and gas industry in alignment with global best practice (2) encourage sustainable development in Thailand through partnership with business focusing on the conservation of natural resources and the environment, and business ethics. During 2022 to 2025, PTTEP made monetary contributions to 10 trade associations and tax-exempt groups including:
Network for responsible global practices for oil & gas industry
- International Association of Oil & Gas Producers (IOGP)
- IPIECA - The global oil and gas industry association
- Petroleum and Energy Institute of Thailand (PEIT)
- Indonesian Petroleum Association (IPA)
- Oil Spill Response Limited (OSRL)
- Oil Industry Environmental Safety Group Association (IESG)
Collaboration and partnership with business sectors for sustainability
- United Nations Global Compact (UNGC) via Global Compact Network Thailand (GCNT)
- Thailand Business Council for Sustainable Development (TBCSD)
- Malaysian International Chamber of Commerce
- Thai Institute of Directors Association (IOD)
Similar to the PTTEP’s Good Corporate Governance and Business Ethics that govern our decisions and actions in conducting business, it also governs the way PTTEP engage with the associations and delivering values through sustainability initiatives. PTTEP does not have any lobbying activities nor make any contribution, in money or in kind, to political parties or organizations, or to individuals engaged in politics. The Company has disclosed the contribution amount as shown in the Economics Performance Data.
Additionally, PTTEP has been a member of Thailand Responsible Business Network (TRBN) since 2019. TRBN is a non-profit organization and a network of businesses that share the same commitment to drive the country in economic, social and environmental dimensions in compliance with Sustainable Development Goals (SDGs). PTTEP also has been a member of Thai Listed Companies Association’s ESG Network.
Leveraging Our Expertise for Public Policy Development
PTTEP acknowledges the significance of driving public policies with government agencies by leveraging its knowledge and initiatives to effectively address national issues such as climate change and biodiversity. PTTEP actively engages with various stakeholder groups through sustainability committees and networks, including:
- CCUS Application Subcommittee under the National Climate Change Policy Committee
- Thailand Carbon Neutral Network (TCNN), led by the Thailand Greenhouse Gas Management Organization (Public Organization), to drive the reduction of Greenhouse Gas (GHG) emissions in collaboration with government sector, private sector, and local communities
- A Memorandum of Understanding (MoU) with the Office of Natural Resources and Environmental Policy and Planning and the Department of Climate Change and Environment to launch joint actions on climate change and biodiversity conservation
- An MoU with the Royal Forest Department; the National Park, Wildlife and Plant Conservation Department; Marine and Coastal Resources Department; as well as PTT Group for a two-million-rai reforestation project
- Collaboration agreements with leading university and institutes to foster research and development networks through collectively leveraging their organizational knowledge. Examples include:
- An MoU with Kasetsart University to promote ocean sustainability
- An MoU with the Hydro-Informatics Institute to develop an ocean data platform
- An MoU with Mae Fah Luang Foundation under Royal Patronage to conserve and restore natural resources through community engagement and application of technology for sustainable development
In addition, PTTEP actively engages in relevant Thailand public hearing process such as draft Thailand Climate Change Act, draft Biodiversity Conservation (Areas & Species) Act, and Thailand Taxonomy of the Bank of Thailand (BOT), in which scope and boundary of the current phase does not include oil and gas exploration and production. The progress of the Thailand Taxonomy is being closely monitored to ensure appropriate and timely response of the Company.
