PTTEP has set short and long-term sustainability targets for economic, social, and environmental dimensions and disclosed the sustainability performance of our materiality issues. In 2023, the main achievements and progress of PTTEP’s targets and work plan were as follows:
Materiality: 1. Energy Transition and Business Model Resilience
| Target |
2023 Progress |
2030
- Sustain 5% average production growth (Compound Annual Growth Rate – CAGR)
- Maintain reserves to production ratio (R/P) to be greater than 5 years
- Maintain competitive unit cost for E&P
- Allocate 10% of total capital expenditure (CAPEX) budget for transition business during 2024-2030
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- Production growth rate at 9%, compared to 2022
- R/P Ratio or Reserves Life at 6.2 years
- Unit cost at 27.65 USD/BOE
- Allocated capital expenditure (CAPEX) to energy transition business amounting to USD 29.5 million.
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Materiality: 2. Climate Change and Net Zero
| Target |
2023 Progress |
- Achieve Net Zero Greenhouse Gas (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)
- Conserve and restore 256,000 rai of forestatrions by 2028
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- Accumulated GHG emissions reduction by more than 2.4 million tonnes of CO2 equivalent when compared to the GHG emissions intensity from base year 2020
- GHG emissions reduction more than 0.9 million tonnes of CO2 equivalent (GHG emissions intensity reduction by 12.3% from base year 2020)
- Conserved and restored 29,537 rai of land forests
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Materiality: 3. Technology Development, Innovation, and Digitalization
| Target |
2023 Progress |
- Develop and apply technology to support business operations according to the company’s strategy in 3 areas:
- To increase operational efficiency and reduce costs in petroleum exploration and production.
- To support the achievement of net zero greenhouse gas emission by 2050.
- To enhance competitiveness in low-carbon business operations.
- Put in place an effective intellectual property management system and register an intellectual property out of the research and technology development outcome yearly.
- Publish research papers in international conferences and journals and win the prize for national and international innovation award competitions every year.
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- Success of 3 projects in the prototype phase and 1 projects in the pilot testing phase
- Increased a return on investment at USD 74 million from the deployment of the successfully developed technologies in E&P business.
- Accumulated intellectual properties: 29 granted patents, 9 registered software copyrights, 63 pending patent applications
- Published 8 technical papers in international academic conferences and received 2 award from a technology development project.
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Materiality: 4. Safety, Security, and Occupational Health
| Target |
2023 Progress |
- Zero incident organization
- Lost Time Injury Frequency (LTIF) of employees and contractors is 0 case per million hours worked in 2023.
- Total Recordable Injury Rate (TRIR) of employees and contractors is ≤ 0.33 cases per million hours worked in 2023.
- Occupational health and safety management systems are certified in accordance with international standards covering all operations
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- Lost Time Injury Frequency (LTIF) of employees and contractors at 0.10 cases per million hours worked
- Total Recordable Injury Rate (TRIR) of employees and contractors at 0.61 cases per million hours worked
- Occupational health and safety management system certifications are in compliance with ISO 45001:2018 covering practically all Thai domestic assets and petroleum development and support bases, excluding G1/61 project currently in the process of implementation according to this standard.
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Materiality: 5. Governance, Risk Management, and Compliance
| Target |
2023 Progress |
2030
- Achieve zero fraud and corruption and zero non-compliance
- Achieve 100% high-impact risk identification with effectiveness mitigation
- Achieve 100% improvement for control deficiency
- Increase GRC Maturity Level to level 4+
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- Implemented GRC according to GRC Strategies – Smart Assurance and Mindful GRC which aims to effectively integrate assurance processes, cultivate GRC mindset and extend GRC practices to related parties.
- Developed GRC One Digital System to support management performance by easily and quickly receiving GRC related information.
- Continued building GRC culture throughout several communication campaigns for all employee in Thailand and overseas.
- 100% of employee completed training and maintain acknowledgement on Good Corporate Governance and Business Ethics (CG&BE)
- Developed ONE BCMS as to increase efficiency in business continuity management (BCM).
- GRC Maturity Level: 3.84/5 (Managed – Transform Level) and perform gap improvement and level up GRC Maturity Level in 2030.
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Materiality: 6. Human Resource Management
| Target |
2023 Progress |
- Improve the competency of employees at all levels for corporate and international assets to exceed an average of 2022 which is 5.94% in preparation for an organizational transformation.
- Conduct Employee Engagement Survey every 2 years.
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- Implemented the Individual Competency Development Plan (ICDP), allowing PTTEP to continuously improve employees’ competency. In 2023, an average of employees’ competency increased by approximately 6.24%.
- Employee engagement score in 2022: 74%, which is higher than benchmarks: Thailand Market Average, Thailand - Oil, Gas, Exploration and Production, APAC- Oil, Gas and Consumable Fuels and Fortune 500 companies. Based on the employee engagement survey results, an improvement plan has been initiated for execution during 2023 - 2024.
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Materiality: 7. Human Rights
| Target |
2023 Progress |
- No human rights violation from direct operational activities
- Annual human rights risk assessment covers 100% of operating assets, non-operated joint ventures, and Tier-1 suppliers.
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- No wrongdoing cases related to human rights violation.
- Human rights risk assessment was conducted in 2023, covering 100% of operating assets, non-operated joint ventures, and Tier-1 suppliers. Related data and issues were systematically gathered, mitigated and monitored.
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Materiality: 8. Environmental Management and Operational Eco-efficiency
| Target |
2023 Progress |
- Achieve zero oil and chemical spills.
- Zero produced water discharge to environment
- Avoid operating in areas at risk of water scarcity and ensure that there is no impact on the community and their water usage.
- Environmental management systems are certified in accordance with international standards covering all operations.
2030
- At least 50% of main structures must be reused, with safety awareness and efficient conditions.
- Zero hazardous waste to landfill by 2020, zero industrial waste to landfill by 2025, and zero total waste to landfill by 2030.
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- Oil and chemical spill rate at 0.21 tonnes per million tonnes of petroleum production
- Zero produced water discharge to environment for operations in Thailand only.
- No PTTEP operations located in areas at high water risk.
- Environmental management systems certified in accordance with international standards: ISO 14001:2015 covering all operations, excluding G1/61 project currently in the process of implementation according to this standard.
- Completed a wellhead platform jacket reuse conceptual study.
- Zero hazardous waste to landfill for operations in Thailand only.
- Waste diverted from disposal: 0.4 million tonnes
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Materiality: 9. Contribution to Communities and Society
| Target |
2023 Progress |
- Macro Level:
- Increase 50% of community income for focused communities by 2030, compared to the baseline data before PTTEP project implementation.
- Achieve 16,000 conservation networks by 2030
- Macro Level:
- Implement social development projects to serve their needs and to create job opportunity for better employment through social development projects, with the objective of building and maintaining a good relationship with stakeholders to gain support from the local community in all operating areas.
- Social Return on Investment (SROI) of social development project not less than 2:1.
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- Macro Level:
- Increased income of focused communities participating in PTTEP projects: more than 39% (compared to baseline data before PTTEP project implementation)
- Established 5,795 conservation networks and 29 community groups support for conservation activities in Songkhla, Pattani, Nakhon Si Thammarat, Surat Thani, Prachuap Khiri Khan, Chumphon, Rayong, Phetchaburi, Samut Songkhram, Samut Sakhon, Samut Prakan, Chon Buri, Chanthaburi and Narathiwat provinces
- Macro Level:
- Implemented more than 100 social development projects in all operating areas both domestic and international which help supporting and maintaining a good relationship with stakeholders as well as maintaining smooth business operation continuity without business disruption from communities.
- Average of Social Return on Investment (SROI) of 30 strategic CSR projects are 3.43:1.
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Materiality: 10. Biodiversity and Ecosystem Services Management
| Target |
2023 Progress |
- Avoid operation in World Heritage sites as defined by UNESCO
- Achieve No-Net Loss of biodiversity in Category I-IV protected areas as defined by the International Union for Conservation of Nature (IUCN) by 2044.
- Achieve Net Positive Impact of Ocean Biodiversity and Ecosystem Services (Ocean BES) value in all offshore operations by 2030, compared to 2019 base year.
- No Gross Deforestation for E&P from 2021 onwards
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- No PTTEP operations in areas of high biodiversity risk or World Heritage sites.
- Developed and implementing Biodiversity Offset Management Plan for the Zawtika Onshore Gas Transportation project in the Republic of the Union of Myanmar, located in an IUCN protected area, to define effective ways forward to achieve no-net loss.
- Achieved Net Positive Impact of Ocean Biodiversity and Ecosystem Services (Ocean BES) value in all offshore operations by 68.0%. (compared to base year 2019)
- No Gross Deforestation for E&P.
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Materiality: 11. IT Security, Cybersecurity, and System Availability
| Target |
2023 Progress |
- No loss from all cyber attacks
- Test the IT BCM and incident response procedure > 2 times per year.
- All IT infrastructures are certified in accordance with international standards.
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- Zero case of information security breaching
- Completed the IT BCM and incident response procedure testing 2 times per year.
- Complied with cybersecurity guidelines on the National Institute of Standards and Technology (NIST)'s standardized framework, and all data center facilities were certified by ISO 27001.
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Materiality: 12. Supply Chain Management
| Target |
2023 Progress |
- Maximize operational efficiency, reliability, transparency and shared values between PTTEP and suppliers.
- Conduct an audit on ESG related risk with all significant suppliers and suppliers with high sustainability risk for the last 3 years.
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- Domestic and international suppliers engaged in PTTEP’s Supplier Day over 100 suppliers.
- Supported local content in operational areas worth over USD 1,818 million, equivalent to 30 percent increase compared to 2022.
- Implemented green procurement worth approximately USD 955 million, equivalent to 68 years percent increase compared to 2022.
- Conducted an audit on ESG related risk with 100% of significant suppliers and suppliers with high sustainability risk for the last 3.
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Materiality: 13. Stakeholder Management
| Target |
2023 Progress |
- Maintain good relationships through stakeholder management in response to stakeholder needs and expectations.
- Stakeholder engagement level at Support and Advocacy level, as appropriate for each stakeholder group.
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- Assessed and reviewed a sustainability materiality assessment with stakeholder groups and developped corporate strategies accordingly.
- Determined Stakeholder Management Strategies and targets at corportae level
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