VISION
WE STRIVE TO BE A LEADING FULLY INTEGRATED REFINING AND PETROCHEMICAL COMPANY IN ASIA PACIFIC
I MISSION THE GROWTH OF THAIOIL GROUP IS BUILT ON A STRONG FOUNDATION OF OPERATIONAL EXCELLENCE TO BE IN TOP QUARTILE ON PERFORMANCE 1 AND RETURN ON INVESTMENT
TO CREATE A HIGH-PERFORMANCE ORGANIZATION 2 THAT PROMOTES TEAMWORK, INNOVATION AND TRUST FOR SUSTAINABILITY
TO EMPHASIZE GOOD CORPORATE GOVERNANCE WE 3 AND COMMIT TO CORPORATE SOCIAL RESPONSIBILITY OUR PRESENCE IN THE COMMUNITY IS ESTABLISHED THROUGH DIRECT AND ON-GOING DIALOGUES WITH OUR STAKEHOLDERS
WORLD
THAIOIL GROUP’S COMMITMENT TO THE ENVIRONMENT IS THE KEY TO ACHIEVE OUR SUSTAINABILITY VISION 02 CONTENTS
SUSTAINABILITY REPORT 2013 REPORT SUSTAINABILITY 04 06 08 20 42 64 General Business Message from About This Report OUR WELL-BEING PEOPLE'S WELL-BEING ENVIRONMENT WELL-BEING Information the CEO and President 22 Corporate Governance 44 Our Communities 66 Environmental Management and Societies 30 Human Resource for 70 Energy Efficiency and Sustainability 56 Our Customers Climate Change
36 Occupational Health 58 Supply Chain 72 Oil and Chemical Spill and Safety Management Prevention CONTENTS 10 12 76 74 Water Management Thaioil Group’s Sustainability Performance Value Chain of Thaioil Group Summary
80 82 84 Awards and Statement of GRI Content Index
THAI OIL PUBLIC COMPANY LIMITED THAI OIL PUBLIC COMPANY Recognitions External Assurance & UNGC Principles COP 04 THAI OIL PUBLIC COMPANY LIMITED
CORPORATE VALUE HEADQUARTER 555/1 ENERGY COMPLEX BUILDING A, 11TH FLOOR, PROFESSIONALISM VIBHAVADI RANGSIT ROAD, CHATUCHAK, CHATUCHAK, TEAMWORK AND BANGKOK 10900, THAILAND COLLABORATION
SUSTAINABILITY REPORT 2013 REPORT SUSTAINABILITY OWNERSHIP LISTED DATE AND COMMITMENT EXCELLENCE 9/10/2004 STRIVING ON THE STOCK EXCHANGE OF THAILAND
REGISTERED CAPITAL 20,400,278,730 THB
ASSOCIATE OF PTT CO., LTD. GENERAL BUSINESS INFORMATION 49.10% OWNED AS REFINERY FLAGSHIP COMPANY WITHIN PTT GROUP VISION FOCUS
INITIATIVE
Gold Class 2014
INTEGRITY THAI OIL IS LISTED AS A MEMBER OF DOW JONES SUSTAINABILITY INDICES 2013 IN OIL AND GAS PRODUCER INDUSTRY WITH ITS RECOGNITION AS A GLOBAL SUSTAINABLE ORGANIZATION. WITH 2013 SUSTAINABILITY PERFORMANCES AMONG INDUSTRY PEERS, THAI OIL IS ALSO SOCIAL RECOGNIZED BY RobecoSAM IN GOLD CLASS LEVEL OR AS ONE OF THE TOP 3 SUSTAINABLE RESPONSIBILITY COMPANIES FROM TOTAL 89 OIL AND GAS COMPANIES IN THE GLOBE. THAI OIL PUBLIC COMPANY LIMITED THAI OIL PUBLIC COMPANY 06 MESSAGE FROM THE CEO AND PRESIDENT
This past year has been another successful one for personnel safety through the project “Safe, White, Green”, as Thai Oil Public Company Limited was Thaioil Group despite on-going challenges in running a well as employee development and succession planning in a accepted as a member of Dow Jones sustainable business. The success reflects the strength of systematic way in accordance with our business growth plan. Sustainability Indices 2013, Emerging our business from managing production cost, complying with requirements, ensuring the highest level of safety meanwhile Stakeholders: Promote relationships and partnerships with SUSTAINABILITY REPORT 2013 REPORT SUSTAINABILITY Market universe in Oil and Gas industry, all parties involved from our suppliers, contractors, customers also being classified for Gold Class building the capabilities of our suppliers and business partners so that they can grow with us. to the communities and society at large through direct Award means we were one of the top engagement activities such as community relations project three companies among eighty-nine Thaioil Group is able to withstand challenges in and Energy Efficiency Projects in remote areas. companies assessed by RobecoSAM. a competitive environment through continuous This achievement reflects investors’ improvement in our risk management and tighter and Environment: Sustainably protect and develop the environment confidence in Thaioil’s ability to create more systematic risk management for project development. while generating business value by meeting and exceeding stable and long-term financial returns. The Thaioil Group Investment Management (TIM) enhances regulations, using natural resources efficiently to reduce systematic project screening process which taking sustain- energy consumption and greenhouse gas emission and ability issues into consideration with return on investment. investing in alternative energy such as ethanol. Our notable projects from the past year include: a joint venture in establishment of LABIX Company, a company In 2013, Thaioil Group established the Sustainability that produces Linear Alkyl Benzene (LAB), an intermediate Management Function and implemented the Thaioil Group for the production cleaning chemical, and the expansion Sustainability Management Policy. To drive forward our MESSAGE FROM THE CEO AND PRESIDENT THE CEO MESSAGE FROM project of Small Power Plant Producer. sustainability effort, we are also working on the Sustainability Management Master Plan and 5-year roadmap (2014-2018) encompassing Thaioil Group’s value chain. In response to increasing stakeholders’ demands, MR. VEERASAK KOSITPAISAL Thaioil Group has defined an approach in conducting THE CEO AND PRESIDENT our business sustainably covering three dimensions I take this opportunity to thank our employees, customers, THAI OIL PUBLIC COMPANY LIMITED suppliers, and all stakeholders who helped make this past as follows: year a success for Thaioil Group. Lastly, I would like to Thaioil Group: Drive Operational Excellence to improve emphasize that sustainability starts with us–from improving operational effectiveness and increase competitiveness both production process, managing community and environmental in terms of reliability and production process by focusing impacts, to increasing financial returns. We pursue sustainability on predictive maintenance, production efficiency, process and for the long-term improvement of society and the environment. THAI OIL PUBLIC COMPANY LIMITED THAI OIL PUBLIC COMPANY 08 ABOUT THIS REPORT
(G4-17) (G4-17) REPORTING PRINCIPLES THAIOIL GROUP’S COMPANIES AND REPORTING BOUNDARY REPORT
REPORTING QUALITY CONTROL RELATIONSHIP COMPANY NAME BUSINESS TYPE 2013 Sustainability Report of Thai Oil BOUNDARY Public Company Limited (TOP) is the third - Thai Oil Public Company Limited Oil refining and distribution In preparation of the report, the information sustainability report. Its information Direct subsidiary Thai Paraxylene Company Limited Production and distribution of upstream aromatic petrochemicals have been collected and revised the covers the period of 1 January to consistency and completeness by the 31 December 2013, prepared in Direct subsidiary Thai Lube Base Public Company Limited Production and distribution of lube base oil SUSTAINABILITY REPORT 2013 REPORT SUSTAINABILITY Sustainability Management Function together accordance with the Global Reporting Direct subsidiary Thaioil Power Company Limited Small Power Producer (SPP) with the data owners. The contents have Initiative (GRI) Version 4.0 (G4) and Direct subsidiary Thaioil Energy Services Company Limited Human resource service providers been reviewed before compiling into the its Oil and Gas Sector Disclosures. Direct subsidiary Thaioil Solvent Company Limited Investment in solvent and chemical business report so as that the accuracy has been We declare this report to be in Direct subsidiary Thaioil Ethanol Company Limited Investment in ethanol business and alternative energy products verified. Moreover, according to the transparency accordance with the GRI guidelines Direct subsidiary Thaioil Marine Company Limited Domestic and international marine transportation and accountability policy of the company, at a comprehensive level. of petroleum and petrochemical products we engaged the services of an independent
Reporting boundary conforms with Direct subsidiary Global Power Synergy Company Limited** Power Producer external party to undertake an assurance the Global Reporting Initiative (GRI) process for our report to ensure the quality Direct subsidiary Thai Petroleum Pipeline Company Limited Petroleum transportation service via multi-product pipeline guideline as shown on page 9 and 19 and accuracy of the material issues as the report Direct subsidiary PTT ICT Solutions Company Limited Information technology and communications services assurance statement is shown on page 82. Direct subsidiary PTT Energy Solutions Company Limited Provider of engineering technical consulting services
Direct Subsidiary TOP SPP Company Limited* Small Power Producer PROCESS FOR DEFINING Indirect Subsidiary TOP Nautical Star Company Limited* Provider of vessels and transportation services FOR FURTHER INFORMATION, Indirect subsidiary TOP Solvent Company Limited Distributor of solvent and chemical products ABOUT THIS REPORT REPORT CONTENTS PLEASE CONTACT: Indirect subsidiary Sak Chaisidhi Company Limited Producer and distributor of solvents and chemicals
The contents in this sustainability Indirect subsidiary TOP Solvent (Vietnam) LLC. Distributor of solvent and chemical products Panchaya Patikornsin report are defined by conducting Indirect subsidiary Thaioil Marine International Private Limited Domestic and international marine transportation Sustainability Development Coordinator of crude oil and petrochemical products Innovation and Sustainability Materiality Assessment applied from Management Department AA1000 AccountAbility Principles Indirect subsidiary TOP-NYK MarineOne Pte. Ltd. Domestic and international marine transportation of crude oil and petrochemical products 42/1 Moo 1 Sukhumvit Road Km.124, Standard (2008) and GRI Reporting Tungsukla, Sriracha, Chonburi 20230 Indirect subsidiary TOP Maritime Service Company Limited Marine transportation services for crew and utilities Principles for Defining Report Content. Thailand Indirect subsidiary Thome Ship Management (Thailand) Dynamic provider of integrated ship management +66(0)-3840–8500, Details of Materiality Assessment Company Limited services to the international shipping and offshore +66(0)-3835-9000, are provided on page 18. industries such as offshore structure management, port agency, vessel inspection and crew training. +66(0)-3835-1555 ext. 6288 +66(0)- 3835-1554, Indirect subsidiary TOP-NTL Private Limited Trustee Manager +66(0)-3835-1444, Indirect subsidiary Sapthip Company Limited Producer and distributor of cassava-based ethanol +66(0)-3835-9019 Indirect subsidiary Ubon Bio Ethanol Company Limited Producer and distributor of cassava and molasses-based ethanol
THAI OIL PUBLIC COMPANY LIMITED THAI OIL PUBLIC COMPANY [email protected]
Indirect subsidiary Maesod Clean Energy Company Limited Producer and distributor of sugarcane-based ethanol
Indirect subsidiary LABIX Company Limited* Producer of Linear Alkyl Benzene
Remarks: * new companies in 2013 (G4-22) * * Independent Power (Thailand) Co., Ltd. has changed the name to Global Power Synergy ANNUAL REPORT 2013 SUSTAINABILITY REPORT 2013 Company Limited (GPSC) where Thai Oil is a minority shareholder and does not consume electricity from the GPSC. As a result, GPSC’s performance is not covered within the boundary for 2013. (G4-23) 10
The business of Thaioil Group is mainly the extension of petroleum refinery value chain in both upstream THAIOIL GROUP’S (crude oil marine transportation) and downstream (petrochemical and lube base oil, power and steam generation, ethanol, solvent production and other VALUE CHAIN businesses) to create value added and stability for the sustainable value chain of Thaioil. As a result, sales revenue of the group in 2013 reached up to Baht 414,599 Million
Oil Refinery The Oil Refinery is our Core Business. It has a capacity of
UPSTREAM approximate 275,000 bbl per day to refine crude oil and other feed stocks. This accounts for approximate 23% of the national overall SUSTAINABILITY REPORT 2013 REPORT SUSTAINABILITY refining capacity. EXPLORATION & MARINE TRANSPORTATION PRODUCTION Petrochemical & Lube base The Business provides value added of the by-products from our petroleum refinery. The petrochemical complex has a total annual production of 838,000 tons of aromatics and 684,535 tons of lube base oil, bitumen and TDAE.
Solvent The Business produces solvent from by-products obtained from Thai Oil petroleum refinery through a subsidiary with production CONSUMERS & SOCIETY LOGISTIC & PIPELINE REFINING capacity of over 76,000 tons per year along with solvent distribution business in Thailand and Vietnam.
Power and Steam Generation Power generation business is established to ensure stability of our operations. Our power generation business has natural gas co-generation power plant with capacity to produce 118 MWh. Electricity from Thaioil Power is mainly for internal use to provide stability of operations. Moreover, it is able to provide 168 tons of steam per hour for operations in other areas. THAIOIL GROUP’S VALUE CHAIN VALUE THAIOIL GROUP’S PETROCHEMICAL & LUBE BASE POWER AND STEAM GENERATION Ethanol The ethanol business is established to respond to Thai government policy on promotion of producing and using of renewable energy. Engaging in renewable business is also preparing for the future changing in energy mix. Thaioil engages in ethanol production business
DOWNSTREAM through joint venture with 3 ethanol plants which have combined production of 800,000 liters per day.
SYMBOLS Transportation & Others Thaioil Group also has other businesses for marketing support, efficiency improvement and creating future SOLVENT opportunities. Thaioil invests in the business of international marine THAIOIL & SUBSIDIARIES' BUSINESS transportation of petroleum products and petrochemical products. OTHER BUSINESS ENTITIES Our fleet comprises 7 vessels from large crude carriers to medium to small-sized crude oil tankers and petrochemical product tankers with a total capacity of 728,074 deadweight tons. Thaioil also THAI OIL PUBLIC COMPANY LIMITED THAI OIL PUBLIC COMPANY SUGAR CANE AND ETHANOL PLANT invests in petroleum product pipeline business with the transmitting CASSAVA PLANTATION capacity of 26,000 million liter per year. In addition, Thaioil has businesses in human resource management to supply workforce for companies in Thaioil Group and technology consultation and knowledge management for refining and petrochemical technologies. 12 SUSTAINABILITY OF THAIOIL GROUP
SUSTAINABILITY TO THAIOIL GROUP MEANS DELIVERING SUSTAINABLE GROWTH AND LONG-TERM VIABILITY THROUGH OPERATIONAL EXCELLENCE BY BALANCING BETWEEN ECONOMIC DEVELOPMENT, SOCIAL RESPONSIBILITY AND ENVIRONMENTAL STEWARDSHIP TO CREATE VALUE FOR ALL STAKEHOLDERS.
SUSTAINABILITY REPORT 2013 REPORT SUSTAINABILITY Thaioil Group strives to be a leading fully Group’s business activities, and has also established integrated refining and petrochemical company the Sustainability Management Function to oversee Sustainability Management Function in Asia Pacific and is fully aware of environmental tangible and systematic sustainability management reports directly to the Chief Executive and society’s well-being through the best under the following structure. Officer and President. The core respons- management. Therefore, Thaioil Group places ibilities of the function include proposing priority on environmental and social managements in the planning, construction and operation of the strategy, policy and planning on sustain- ability management and coordinating with multiple functions and companies within THAIOIL GROUP’S SUSTAINABILITY MANAGEMENT STRUCTURE Thaioil Group Sustainability Management Policy Thaioil Group to develop a sustainability management master plan, road map and Thaioil Group aspires to become a business leader in line with the principle of sustainable development by building confidence of stakeholders through BOARD OF DIRECTORS procedures, including the development of excellent and transparent operations, and continuously delivered innovations for a sustainable future of society and the environment in accordance with a sustainability culture among employees a Sustainability Management Framework in order to align the Group’s direction in the Group and its stakeholders to promote with international standards. The policies of Thaioil Group Sustainability Management are as follows: NOMINATION AND RISK MANAGEMENT AUDIT COMMITTEE CORPORATE awareness of sustainable business conduct. REMUNERATION COMMITTEE COMMITTEE GOVERNANCE COMMITTEE 1. Operate in an economically, socially and environmentally sustainable manner whilst balancing the interests of a diverse range of SUSTAINABILITY OF THAIOIL GROUP OF SUSTAINABILITY Sustainability is one of Thaioil Group’s stakeholders to assure sustainable business growth. key strategies and the Group also CHIEF EXECUTIVE OFFICER 2. Reduce the footprint along the value chains in which we operate. AND PRESIDENT implements a Thaioil Group Sustainability Our “footprint” covers environment, social and health and safety dimensions. Management Policy to communicate our 3. Develop Green Growth Strategies focusing on economic and ...... INTERNAL SYSTEM commitment to all groups of stakeholders. environmental sustainability through our internal capabilities SUSTAINABILITY AUDIT MANAGER It is the responsibility of the Board of and collaboration with external stakeholders. MANAGEMENT Directors, the management and every 4. Possess high aspiration to enable future growth through prioritized technologies to sustain operations, deliver growth, and shape employee to support and drive the the future for Thaioil Group. FINANCE AND CORPORATE REFINERY AND ORGANIZATION CORPORATE implementation of the policy. STRATEGY 5. Disclose performances on sustainability transparently and in ACCOUNTING COMMERCIAL PETROCHEMICAL EFFECTIVENESS GOVERNANCE accordance with widely accepted international standards to enable continuous development. • Economic • Economic • Customers and • Environment policy , • Supply chain • Corporate governance performance performance feedstock suppliers management system , management and • Code of conducts Every Director, Management member and employee of Thaioil Group is • Risk and crisis • Business growth • Product and services compliance , reporting procurement • Anti-corruption/trust responsible for contributing, driving and executing the above Policy and management • Investor responsibility and expenditure • Market presence • Corporate citizenship Thaioil Group Sustainability Management Framework. • Business growth • Transportation • Climate strategy • Labor practice and philanthropy and investment • Product • Operational eco-efficiency , • Employment , • Grievance
THAI OIL PUBLIC COMPANY LIMITED THAI OIL PUBLIC COMPANY decision stewardship energy labor/management • Public policy • Emission , waste , effluent , relation and equal • Indirect economic impact release to environment remuneration • Society and community • Biodiversity • Talent attraction • Biodiversity • Water management and retention • Social reporting • Occupational health • Trainning and and safety development • Grievance • Human rights 14
With regard to the implementation of the strategy in business, governance, the environment The Corporate KPIs of Thaioil Group incorporate every employee readiness and succession plan, and organizational Sustainability Management Policy, Thaioil Group and society. Environmental, social, occupational aspect, including finance, business and sustainability, i.e. health index. integrates sustainability management into the health and safety issues along with stakeholders’ Dow Jones Sustainability Indices, customer satisfaction, The Corporate KPIs are monitored monthly in the meeting of annual Strategic Thinking Session (STS) when the concerns are, therefore, included in this Strategic corporate governance rating, community satisfaction, each department as well as in the top management meeting management team and the Board define the Group’s Thinking Session. employee engagement, total recordable case frequency SUSTAINABILITY REPORT 2013 REPORT SUSTAINABILITY of Thaioil Group. Achieving of these KPIs positively affects rate, process improvement (including energy intensity the variable compensation payment scheme of the employees index), sustainability reporting according to GRI, long-term and management. CORPORATE SUSTAINABILITY
The strategic plan which has been approved by the Board and management team will become part of the SUSTAINABILITY MONITORING AND EVALUATION Group’s Key Performance Indicators (KPIs) at the corporate level. Corporate KPIs will be assigned to the CEO and cascaded down to executive vice presidents, assistant executive vice presidents, vice presidents and section managers. Thaioil Group’s Corporate KPIs are illustrated in below Strategy Map. FINE VISION, DE S ET, AND TRATEG ARG Y T A CO S P M S PR M STRATEGY MAP 2013 E O U IN E A N S R C IC U U H A B T F T
L O E
E U SUSTAINABILITY • STAKEHOLDERS VALUE OPTIMIZATTION R
L C V
B I I
T M S
A
INCREASE PROFITABILITY & ASSET OPTIMIZATION SUSTAIN SOCIAL & ENVIRONMENT POSITION N I N P O
I E
SUSTAINABILITY OF THAIOIL GROUP OF SUSTAINABILITY L N
A M E
T
P M A
S
O N
E
U
L
D N
S E
STAKEHOLDERS INCREASE STAKEHOLDER’S INTERESTS, BRAND AND REPUTATION
T
V
A
D
E
T
L
I
D
I
O
U
N
B
• Operational Excellence • Customer Focus • Innovation & Growth • Sustainable Development
>Enhance Efficiency >Enhance Customer >Establish Innovative >Strengthen Corporate
A
and Effectiveness Focus Management Capability Sustainability A
INTERNAL PROCESS N
S E
and Build strategic >Pursue growth through D C
S
E N
C
core, step out businesses S
Partner A
E
S
D
R
and new market approach M
R
T E O
IF CC ST Y N A Y PROACTIVE RISK MANAGEMENT IMP ENT I T S LEM EN WITH MANAGEM
LEARNING • HIGH PERFORMANCE ORGANIZATION & DEVELOPMENT ENSURE EMPLOYEE READINESSENHANCE KM SYSTEMENHANCE ORGANIZATIONAL HEALTH EXECUTIVES’ RESPONSIBILITY IN SUSTAINABILITY MANAGEMENT Under Sustainability Management framework, the executives of Thaioil Group are responsible for defining the vision, target
THAI OIL PUBLIC COMPANY LIMITED THAI OIL PUBLIC COMPANY Thaioil Group Strategy Map is adapted from the Balanced Score Card concept consisting of 4 aspects as and strategy regarding the sustainability of the Group in a balanced manner and with due consideration for stakeholder follows: feedback; for deploying the sustainability vision and framework; for defining the responsibilities and direction of effective • Sustainability • Internal Process performance monitoring; and for arranging internal and external performance evaluations to ensure conformance with the • Stakeholders • Learning and Development guidelines of the Thaioil Group Sustainability Management Framework. Last but not least, Thaioil Group management also has the responsibility of promoting a culture of sustainability management to all stakeholders of Thaioil Group. 16
In addition, Thaioil Group is in the process of developing a sustainability master plan and a five-year (G4-24) (G4-26) (G4-27) roadmap to provide a long term direction in economic, social and environmental management by taking STAKEHOLDER GROUP ENGAGEMENT METHODS EXPECTATIONS CHAPTER stakeholder perspectives gained from the insight of relevant responsible functions into developing Corporate goals in terms of economic, social and environmental aspects as follows: 1 Shareholders, • Annual General Meeting (AGM) • High and sustainable return on • Sustainability
SUSTAINABILITY REPORT 2013 REPORT SUSTAINABILITY money-lenders, • Quarterly corporate investment of Thaioil financial institutions performance announcement • Good corporate governance and Group ECONOMIC “TO SUPPORT THAIOIL GROUP’S ECONOMIC VIABILITY AND • Financial analysts meeting risk management • Corporate CORPORATE DEVELOPMENT THROUGH OPERATIONAL • Investment exhibition • Sustainability disclosure including Governance EXCELLENCE AND HOLISTIC SUPPLY CHAIN MANAGEMENT” (Road show) employee related data • Preparation of the annual report • Sustainable business plans SOCIAL “TO BE RESPONSIBLE AND ACCOUNTABLE TO ADVANCING • Grievance mechanism THE SOCIAL WELL-BEING OF ALL THOSE INVOLVED IN THAIOIL GROUP’S BUSINESS DIRECTLY AND INDIRECTLY” 2 Customers • Communication as planned • Good quality of products and • Our Customers • Monthly customer visit after-sale service • Annual satisfaction survey • Delivery of products within timeframe ENVIRONMENTAL “TO COMMIT TO RESPONSIBLE USE AND PROTECTION OF • Response to customers’ needs THE NATURAL ENVIRONMENT THROUGH CONSERVATION AND SUSTAINABLE BUSINESS PRACTICES” 3 Suppliers and • Communication via electronic • Fair and transparent procurement process • Supply Chain contractors media and telephone • Acceptable payment period Management
SUSTAINABILITY OF THAIOIL GROUP OF SUSTAINABILITY • Added value and long-term relationships
Eventually, Thaioil Group will review the Group’s sustainability management continuously by benchmarking 4 Employees • Employee Committee • Good compensation • Human performance against leading oil and gas companies in the Corporate Sustainability Management of Dow • Monthly journal (Akanee) • Career security, career path progression, Resource for Jones Sustainability Indices as well as through ongoing stakeholder engagement. • Annual employee benefits, human resource management Sustainability engagement survey • Employment trend disclosure • CEO meets employees STAKEHOLDER ENGAGEMENT (G4-25) 5 Society and • Regular involvement • No negative impact on the environment • Our Communities communities of the community as planned and society and Societies Stakeholder engagement is an integral part of Thaioil Group’s business conduct, included in our business • Monthly meetings with • Supports for long term community and code of conduct and Thaioil Group Sustainability Management Policy. Each function is responsible for community leaders society development engaging, identifying and prioritizing material aspects with stakeholders under their responsibility. The results from the engagement process are the key factors for defining any sustainability issues within 6 Government agencies • Participation in the activities • Comply with relevant laws and • Corporate Thaioil Group. and related and programs of the regulations Governance organizations government agencies THAI OIL PUBLIC COMPANY LIMITED THAI OIL PUBLIC COMPANY • Delivering reports to the government agencies 18
(G4-19) (G4-20) MATERIALITY ASSESSMENT (G4-18) MATERIAL GRI ASPECTS ASPECT BOUNDARY SUSTAINABILITY ISSUES
Thaioil Group conducted materiality assessment by applying GRI Reporting Principles for Defining Report 1. Business growth Economic Performance Thaioil Group Content which includes the following 5 steps: 2. Health and Safety Occupational Health and Safety, TOP, TPX, TLB, TP, TES SUSTAINABILITY REPORT 2013 REPORT SUSTAINABILITY Asset Integrity and Process Safety STEP 1: Identify aspects relevant to the sustainability STEP 3: Present the sustainability issues to the 3. Code of Conduct Compliance TOP, TPX, TLB, TP, TES of Thaioil Group by considering stakeholders’ CEO and top executives expectations, stakeholders’ feedback on previous 4. Customer Relations Product and Service Labelling TOP, TPX, TLB STEP 4: Present high priority issues in Sustainability year’s report, Thaioil Group business context and (PR5 – customer satisfaction) Report and medium priority issues on the Company’s industrial sustainability issues 5. Human Development Training and Education TOP, TPX, TLB, TP, TES website STEP 2: Prioritize the issues by scoring each topic 6. Employment Management Economic Performance, Market Presence, TOP, TPX, TLB, TP, TES STEP 5: Review sustainability context to ensure from 1-5 regarding importance to Thaioil Group Employment, Labor/Management Relations compliance with GRI principles on Report Quality in accordance with enterprise risk management 7. Climate Strategy Economic Performance (EC2) TOP, TPX, TLB, TP criteria and the frequency with which each issue This process confirms Thaioil Group’s commitment 8. Material and Energy Materials, Energy TOP, TPX, TLB, TP has been raised by stakeholders. In the next step, to continuous development through the external organize workshops with the relevant functions to assessment approach and verification of external 9. Water Resource Management Water TOP, TPX, TLB, TP explain the approach and conduct exercises. Each stakeholder expectations. 10. Community Impact Assessment, Local Communities TOP, TPX, TLB, TP function is required to prioritize issues relevant to
SUSTAINABILITY OF THAIOIL GROUP OF SUSTAINABILITY 11. Anti-corruption Anti-corruption TOP, TPX, TLB, TP, TES their work, the results of which must be approved by their supervisor. 12. Grievance Mechanism Environmental Grievance Mechanisms, TOP, TPX, TLB, TP, TES Labor Practices Grievance Mechanisms, Human Rights Grievance Mechanisms, Grievance Mechanisms for Impacts on Society MATERIAL ASPECTS AND ASPECT BOUNDARY SETTING (G4-18) 13. Air Emissions Emissions, Transport TOP, TPX, TLB, TP
The criteria to define the aspect boundaries of sustainability issues include the relevance of each issue 14. Effluent, Waste and Spills Effluent and Waste TOP, TPX, TLB, TP in terms of impact from the Company, illustrated as follows: 15. Social Investment Indirect Economic Impacts Thaioil Group
16. Environmental Compliance Environmental Compliance TOP, TPX, TLB, TP
17. Customer Privacy Customer Privacy TOP, TPX, TLB
18. Supplier Assessment Supplier Environmental Assessment, TOP, TPX, TLB, TP Supplier Assessment for Labor Practices, Supplier Human Rights Assessment, THAI OIL PUBLIC COMPANY LIMITED THAI OIL PUBLIC COMPANY Supplier Assessment for Impacts on Society
19. Public Policy Public Policy Thaioil Group
Remark : Thaioil Group is under improvement of data management system. The sustainability performance for Sustainability Report 2013 is mainly from TOP, TPX, TLB, TP and TES companies of which the data is considered adequately reliable and auditable. : The scope excludes partners and contractors unless otherwise stated that it is under Thai Oil’s direct management or that operation essentially affects. (G4-21) 20
OUR WELL-BEING SUSTAINABILITY REPORT 2013 REPORT SUSTAINABILITY
CORPORATE GOVERNANCE • Board of Directors • Risk Management • Code of Conduct MORE THAN 50 YEARS
I : OUR WELL-BEING OUR I : OF REFINING ENERGY FOR THAILAND. HUMAN RESOURCE FOR SUSTAINABILITY • Human Resource Development WE STRIVE TO MAINTAIN OUR • Employee Engagement REFINERY LEADER POSITION IN THAILAND BY LAYING THE STRONG FOUNDATION FOR OCCUPATIONAL HEALTH AND SAFETY THE SUSTAINABLE GROWTH IN • Occupational Health THE FUTURE THROUGH OUR • Safety GOOD CORPORATE GOVERNANCE, HUMAN RESOURCE READINESS AND LEADING OCCUPATIONAL HEALTH AND SAFETY THAI OIL PUBLIC COMPANY LIMITED THAI OIL PUBLIC COMPANY 22 CORPORATE GOVERNANCE
THAIOIL BELIEVES THAT HAVING VISIONARY, COMPETENT AND PARTICIPATION OF THE BOARD OF DIRECTORS RESPONSIBLE LEADER IN COMBINATION WITH FAIR, IN STRATEGY DEVELOPMENT TRANSPARENT AND AUDITABLE BUSINESS OPERATIONS ARE % CRITIACL REQUISITES FOR BUILDING TRUST AMONG The Board of Directors participates in developing and reviewing the Company’s OF CORPORATE STAKEHOLDERS AS WELL AS DRIVING ORGANIZATIONAL SUSTAINABILITY REPORT 2013 REPORT SUSTAINABILITY GOVERNANCE96 SCORE strategy in August and November every year. Sustainability issues are integrated DEVELOPMENT. THAIOIL INTEGRATES MEANS OF into the organizational strategy through corporate indicators in terms of economy, SUSTAINABILITY INTO OUR GOOD CORPORATE GOVERNANCE society and the environment. Additionally, in order to expand the directors’ SYSTEM IN ORDER TO BUILD SUSTAINABLE BUSINESS OPERATION. Thaioil has developed mechanisms to ensure compliance with the knowledge, Thaioil develops knowledge programs with third-party support and business ethiquette. Thaioil’s organizes overseas study trips for the Board of Directors. BOARD OF DIRECTORS internal audit department works independently and reports directly to the Audit Committee. The CORPORATE RISK MANAGEMENT The Board of Directors comprises individuals who are competent, trustworthy and respected, and skillful department is responsible for in various areas of expertise, such as industrial, accounting and finance, business, management, international auditing key business processes; marketing, strategy, crisis management, law and corporate governance. At least one-third and not less than the high risk processes are Thaioil’s risk management structure comprises the Board of Directors, Risk 3 members of the Board of Directors must be independent directors. At present, the number of independent included in the audit plan. The Management Committee (RMC), Risk Management Steering Committee (RMSC) and directors exceeds the requirements stipulated by law. There are 15 Thaioil’s current Board of Directors, internal control framework is Disciplinary Risk Management Committee (DRMC). In 2013, Thaioil held 7 Risk of which 1 is an executive director and 14 are non-executive directors. Of these 15 directors, 11 are independent. outlined pursuant to the guidelines Management Committee meetings, as normally planned once in a quarter, in order of the Committee of Sponsoring There are 4 audit directors, who are all independent and responsible for providing independent opinions to assess corporate risks, project and major investments risks before presenting Organizations of the Treadway the findings to the Board of Directors for consideration. CORPORATE GOVERNANCE CORPORATE on Thaioil’s business operations. All directors have been recruited by the Nomination and Remuneration Commission (COSO). The risk Committee, comprised of 3 independent directors. Individuals qualified in different areas of expertise have management section has been been recruited as directors which ensure diversity of the Board with different ideas and business perspectives established to analyze, assess and BOARD OF DIRECTORS presented. The nomination and appointment guidelines are outlined in Thaioil’s Corporate Governance monitor risks in various situations Manual. which may affect the business RISK MANAGEMENT COMMITTEE (RMC) operations in the organization. In the past year, Thaioil held 12 meetings of the Board of Directors to establish the Group’s vision, policy In the past year, there were no and business strategy so as to define the Group’s organizational values of good corporate governance, findings indicatinging that Thaioil RISK MANAGEMENT STEERING COMMITTEE (RMSC) corporate social responsibility, environment and human rights. incompliance with any law or regulations which would lead to In addition, in order to achieve the objectives of corporate governance, the Board of Directors appointed • GROWTH STEERING DRMC DRMC DRMC DRMC DRMC DRMC 4 committees in charge of screening and developing regulations consisting of the Audit Committee, the a penalty for anti-competitive COMMITTEE Strategy Finance Commercial Operation Corporate Affiliate Risk practice, corruption, discrimination, • CREDIT COMMITTEE Management Nomination and Remuneration Committee, the Corporate Governance Committee and the Risk Management • HEDGING COMMITTEE THAIOIL+ THAIOIL+ THAIOIL+ THAIOIL+ THAIOIL+ product use, product safety, or AFFILIATES AFFILIATES AFFILIATES AFFILIATES AFFILIATES Committee. product information.
THAI OIL PUBLIC COMPANY LIMITED THAI OIL PUBLIC COMPANY List of Board of Directors can be viewed in the Annual Report 2013 at : www.thaioilgroup.com FUNCTIONAL RISK MANAGEMENT COORDINATOR RISK MANAGEMENT SECTION 24
Each committee has consistent roles and responsibilities to ensure that corporate governance and Remuneration provided for the Board of Directors is linked to the responsibilities of each director and is subject to the corporate risk are implemented in all key activities including all risks related and linked to Thaioil’s management of the Remuneration Committee and approval of the annual shareholders’ meeting. affiliates. Then, the Disciplinary Risk Management Committee and Risk Management Committee of each Remuneration provided for the Chief Executive Officer depends on corporate key performance indicators and appraisal of affiliate will report its risk management progress and results to Thaioil’s Risk Management Steering leadership competency as well as budget and project management. Committee pursuant to Thaioil’s risk management framework and in compliance with international SUSTAINABILITY REPORT 2013 REPORT SUSTAINABILITY standards, i.e. ERM COSO and ISO31000. The Risk Management Policy and Risk Management Manual Remuneration provided for the top executives depends on corporate key performance indicators which will determine are provided as guidelines for all functions in Thaioil Group in order to set it as one standard. Thaioil bonus amounts and is subject to the management of the Remuneration Committee. The ratio of annual total compensation Group has developed the Risk Management Information System (RMIS) to store the risk data of Thaioil of the highest top executive to the median annual total compensation of employee is 10:01 and the ratio increased from Group’s companies and provide alerts to review the risk management plan for each company. the previous year at 1:1, respectively.
Thaioil Group’s risks are divided into 5 areas, which are Business and Strategy, Commercial and Marketing, Corporate Affairs, Financial, and Operations. Thaioil Group assesses the risks and develops CODE OF CONDUCT the appropriate measures and plans to prevent any environmental and social impacts which may affect business operations e.g. oil spills and refinery blockage by communities. Thaioil regularly reviews Code of Conduct in various areas to ensure that its content is suitable for the Group’s operations under changing business situations. The Board of Directors, top executives and all employees must sign their names to acknowledge understanding and acceptance of the Code of Conduct, and the top executives are obliged to ensure that the PERFORMANCE MONITORING employees, business partners and contractors also understand and comply with Thaioil’s Code of Conducts. Every year, Thaioil’s Corporate Governance is evaluated by third party organizations. Thaioil Group monitors performance through its This year, Thaioil participated in the Board MEASURES AGAINST benefits for themselves or their families. Thai Chamber of Commerce, the Joint
CORPORATE GOVERNANCE CORPORATE indicators from the level of the Board of Directors to of the Year Award, where the Board of CORRUPTION Further detail is disclosed in the Company’s Foreign Chambers of Commerce in the operating functions in a monthly management Directors’ performance is evaluated every CG manual, which can be downloaded Thailand, the Thai Listed Companies meeting. Thaioil has business code of conduct 2 years by Thai Institute of Directors (IOD), in the Company’s website. Moreover, Association, the Thai Bankers principles including conflict of interests; in cooperation with the Stock Exchange of Thaioil has launched a “Conflict of Association, and the Federation of Thailand and other business associations. maintaining confidential information and Interest Disclosure Electronic Form” Thai Industries commerce. The project In 2013, Thaioil’s Corporate Governance was the use of inside information; giving PERFORMANCE EVALUATION for all employees to encourage them to was also supported by the government evaluated (Corporate Governance Report of or acceptance of presents, properties, perform their duties with transparency, and the Office of National Anti-Corruption AND REMUNERATION OF Thai Listed Companies 2013) at a rating of or other benefits, etc. Thaioil’s code of morality, lawfulness, responsibility for their Commission. THE BOARD OF DIRECTORS "excellence" for 5 consecutive years which conduct prescribes that employees are own actions, and increased efficiency is the highest award. Thaioil is 1 of 30 prohibited from soliciting or accepting In 2012, Thaioil joined the member- companies of the Top Quartile with a market in performing their work based on There are 3 performance evaluations of the Board any advantage from third parties that ship of the United Nations Global value of over 10 billion Baht as evaluated transparency and fairness, in compliance of Directors which are Self Assessment of the Director, may impair their objectivity or weaken Compact (UNGC), which enabled it by Thai Institute of Directors (IOD). Thaioil with the Company’s corporate governance Assessment of other Directors and Assessment of their ability to promote the best interest to apply the ten UNGC principles, received the Top Corporate Governance principles. of the Company. Employees shall refrain which are internationally recognized the Board and Sub-Committees which cover the Report Awards in the SET Awards 2013 held THAI OIL PUBLIC COMPANY LIMITED THAI OIL PUBLIC COMPANY from offering advantages to outside Board policy, Board composition, Board meeting and by the Stock Exchange of Thailand (SET). Since 2010, Thaioil joined the project in the promotion of good governance Board practices. In the past year, the overall Board persons as a motive for him/her to do, on Collective Action Coalition against on human rights, labor, environment, assessment is in the level of excellence. or refrain from doing any illegal or Corruption in Private Sector. The and anti-corruption in its business wrongful act that may lead to seek coalition was initiated by the IOD, the operation. 26
In 2013, Thaioil defined an Anti-Corruption Policy by assigning definitions, roles, duties, responsibilities, Roles and Responsibilities guidelines, implementing measures of the supervision and control of corruption in the organization. Apart from the strict implementation of the policies, guidelines, and measures, the Company defines the roles and duties This was to show its concrete commitment to conducting business based on fairness, integrity, transparency, of the Board, board-committees, and management as follows: responsibility to society and all stakeholders in compliance with Thaioil’s corporate governance principles and code of business conduct, which conform to the Capital Market Supervisory Board’s announcement, 1. The Board of Directors must define policies, supervise, follow up, as well as allocating sufficient and suitable resources Tor Jor 44/2013 on the conditions on the disclosure of information on financial status and operating to ensure that the Company meets the objective of implementing the anti-corruption policy. results; the 2014 CG Rating of the IOD; and the Private Sector Collective Action Coalition against Corruption 2. The Corporate Governance Committee must review the policies as necessary in line with changes in businesses, rules, (CAC). Thaioil has communicated the policy to all employees through circulars and internal magazines regulations, and relevant laws, approve any improvement or modification before submitting it to the Board for approval; SUSTAINABILITY REPORT 2013 REPORT SUSTAINABILITY and sent policy notifications to customers and business partners, as well as announcing the policy via as well as providing comments and recommendations that benefit the management in the preparation of operating plans the Company’s website for the interested public. and the implementation of the measures.
3. The Audit Committee must monitor the operation of the Company in line with anti-corruption measures, including financial Anti-Corruption Policy reports, internal control system, and internal audit to ensure that the operation of various departments are efficient, The Company is committed to basing business on fairness, integrity, transparency, responsibility to lawful, and in compliance with ethical rules, regulations, and standards. society and all stakeholders, in compliance with its corporate governance principles and code of conduct on a par with international standards, to bolster confidence among all stakeholders and 4. The Management must implement the policies, support resources, communicate and encourage all employees and all promote its own sustainability. The Company is aware that corruption is a major obstacle to objective relevant persons to understand the policies, guidelines, and measures, encourage and support the Company’s subsidiaries achievement and is also a problem to national country’s economic and social development. Therefore, to apply the anti-corruption policy and measures as appropriate, implement the views and recommendations of the Board in 2010, the Company signed its commitment to joining the “Private Sector Collective Action and the board-committees, review the suitability of various systems and measures, as well as reporting to the Board Coalition against Corruption”. and/or to the board-committees accordingly.
To achieve the objectives, the Company defined its Anti-Corruption Policy, as well as roles, responsibilities, guidelines, and measures as follows: Implementation
1. In implementing the policies, refer to the guidelines set by the Company in the CG manual and code of business conduct, CORPORATE GOVERNANCE CORPORATE as well as rules, regulations, and relevant manuals on business operation. Definition of the Anti-Corruption Policy 2. In dealing with major corruption risks, the Company ensures that directors, the management, and employees cautiously Corruption means any action, whether offering, promising, soliciting, demanding, giving or accepting perform the following duties: assets or other benefits to government officials or other persons in business dealing with the Company, whether directly or indirectly, as a motive for them to do or refrain from doing any act to acquire or keep 2.1 Political Contribution The Company’s policy is politically neutral, with no support or action that supports political benefits that are unsuitable to the business, except as allowed by the laws, rules, regulations, local parties, whether directly or indirectly, as well as the use of the Company’s resources in activities that cause the customs or tradition, or business customs. Company to lose its political neutrality and/or sustain damage by participating in such activities.
Political contribution means assistance, whether in cash or in-kind, to support political activities such 2.2 Charitable Contribution and Sponsorship The Company’s policy is to control charitable contributions and sponsorships as giving of objects or services, advertisement on the promotion or support of political parties, purchase in various forms to ensure that the activities will not lead to corruption. The Company sets up procedures and control of tickets to attend fund-raising sessions, or donation to organizations close to political parties. that are clear, concise, efficient, and able to check and follow documents and proofs.
Anti-Corruption Policy 2.3 Gifts, Hospitality, and Expenses The Company determines that exchanging gifts and entertainment must be suitably done according to tradition but within reasonable value. They must not induce to act or refrain from acting that may The Board of Directors (the Board), the management, and employees must not corrupt or accept corruption THAI OIL PUBLIC COMPANY LIMITED THAI OIL PUBLIC COMPANY lead to malfeasance and corruption. of all forms in any circumstances, covering the business of the Company in every country and in every relevant agency. The Company defines guidelines, operating measures, and roles and duties of responsible persons, as well as regularly monitoring and reviewing the implementation of the anti-corruption policy in compliance with changes in businesses, rules, regulations, and relevant laws. 28
GRIEVANCE CHANNELS Measures In order to ensure that all employees comply with Thaioil’s Corporate Governance 1. Board, the management, and employees must comply with the anti-corruption policy and measures, policy and principles, Thaioil has communicated the policy to our employees Thaioil Group recognizes the rights of all the Company’s corporate governance principles and code of business conduct, by not involving in through e-newsletters and corporate governance training provided on the Group’s stakeholders and provides communication corruption, whether directly or indirectly. intranet (CG e-learning) since 2010. In 2013, more than 90% of Thaioil’s employees channels for reporting complaints related 2. Employees should not neglect or ignore, or when they face or doubt any act that is considered to any breach of law or Thaioil’s Business corruption by notifying supervisors or responsible persons or through suitable report channels and have been trained by CG e-learning. cooperate in the fact-finding investigation stipulated by the Company’s regulations. Code of Conduct. In 2014, Thaioil plans to communicate anti-corruption issues to the Board of 3. The Company will provide fairness and protection of employees who refuse or inform about the Directors, top executives and employees at all levels and plans to revise the Any stakeholders within the organization corruption relevant to the Company’s activities, by not demoting, punishing, or causing negative impacts. SUSTAINABILITY REPORT 2013 REPORT SUSTAINABILITY can lodge a complaint directly with the The Company will strictly provide protection to the complainant or the person who cooperates in content of e-learning so as to comply with the anti-corruption policy announced reporting corruption as defined in the policy and personnel guidelines and/or the Company’s complaint at the end of year 2013. Human Resource Department. and whistle-blowing measures. Any stakeholders outside the organization 4. Corrupt persons violate the Company’s code of conduct and must face punishment under the can lodge a complaint directly via Company’s rules and may also face prosecution if the action violates the law. GRIEVANCE MECHANISM channels below: 5. The Company communicates its anti-corruption policy and measures, including channels of whistle-blowing, complaint or recommendations within the Company through various means such as orientation of new directors and employees, the intranet, or newsletter to forge understanding in the Thaioil accepts complaints from all stakeholders through 2 channels, one inside Mail: implementation of the policy. and one outside the organization. All complaints are investigated and documented Chairperson of Board of Directors/ 6. The Company communicates anti-corruption policy and measures, including channels of whistle-blowing, according to the established process and in line with the confidentiality policy. Chairperson of Corporate Governance Committee/ complaint, or recommendations to the public and stakeholders through various means such as the All complainants’ names and complaints are treated with confidentiality in order Chairperson of Audit Committee/ Company’s website or annual report. to protect the complainant. Thaioil has also established an investigation process. Chief Executive Officer or 7. The Company sets up risk management on anti-corruption by assessing and ranking risks, and defining Secretary of the Company suitable measures, as well as following up on the implemented measures. Thaioil neither condones nor accepts business code of conduct violations by employees, business partners and customers in connection with corruption. Thai Oil Public Company Limited. 8. The Company sets up personnel management processes to reflect its commitment to the anti-corruption th policy and measures, from the selection of personnel, training, performance assessment, compensation, In the past year, there were no significant instances of improper business practice 555/1 Energy Complex Building A, 11 Floor, promotion, to an organizational structure with suitable division of duties for checks and balances, as well in relation to business code of conduct. In 2014, Thaioil plans to improve the Vibhavadi Rangsit Road, Chatuchak, Bangkok 10900 CORPORATE GOVERNANCE CORPORATE as ensuring sufficient and suitable skilled resources and personnel to implement the policy. grievance mechanism process pursuant to international practice. Email: 9. The Company sets up a Corporate Authorization Procedure that is clear, concise, efficient, transparent, and open to scrutiny. [email protected] or 10. The Company sets up an internal control system covering finance, accounting, data entry, as well as GOVERNMENT SUPPORT [email protected] other organizational processes, which is relevant to anti-corruption measures. The Company also ensures that internal control findings are communicated to responsible personnel. Tel: 11. The Company sets up an internal audit system covering major activities, including commercial Thaioil Group maintains political neutrality and does not support any political 0-2797-2900 or operation, and procurement to ensure that the system meets the objectives, as well as monitoring the party or person in the name of the company. However, Thaioil Group always supports 0-2797-2999 or operation so that it complies with rules, work practices, regulations, and, finally, provide recommendations government policies and participates in sustainable development activities 0-2299-0000 ext. on the improvement of processes for greater efficiency. organized by the government. For example, the Board of Investment (BOI) has 7313-7316 or 7440-7442 To comply with the policy, the Company has put in place whistle-blowing measures and whistle-blower launched an investment promotion for sustainable development by offering protection mechanisms, as well as communication on anti-corruption measures via the orientation of new privileges to companies for efficiency improvement in terms of efficient energy Fax: employees, E-newsletter, internal and external magazines, policy notifications to business partners and use and environmental improvement. Thaioil Group has responded to the policy customers, and the Company’s website. 0-2797-2973 by investing in the energy saving and emission improvement project, and plans In 2014, Thaioil plans to become a member of the Private Sector Collective Action Coalition Against THAI OIL PUBLIC COMPANY LIMITED THAI OIL PUBLIC COMPANY to operate at an efficiency level that is beyond the legal requirements. Corruption “CAC”. To prepare for certification by CAC, Thaioil is required to submit all relevant information and documents to the Audit Committee so as to obtain approval. This certification will illustrate Thaioil’s intention to engage in fair, honest and transparent business operations displaying corporate social responsibility to society and stakeholders in all groups pursuant to the principles of good Corporate Governance and Business Code of Conduct. Thaioil has established measures to control and prevent corruption such as anti-corruption risk assessment etc. 30 HUMAN RESOURCE FOR SUSTAINABILITY
2014 PLAN
Building employee readiness is still one of the challenges faced by Thaioil Group on the path to sustainable development. The objectives of the 2014 initiatives on human resource management are to build employee readiness in terms of employee competency and employee numbers in order to be able to support business growth and expansion to regional level. These initiatives SUSTAINABILITY REPORT 2013 REPORT SUSTAINABILITY place emphasis on developing the foundation of the employee management system to incorporate STEP 1 STEP 2 STEP 3 STEP 4 clear and integrated policies and processes, including on encouraging employees’ motivation to create and yield the remarkable results that lead to High-Performance Organization. • Step 1 : Employee’s Competency Development Planning in accordance with Career Model • Step 2 : Training Thaioil Group prepares employee readiness in 2 dimensions by using proactive employee acquisition • Step 3 : Performance Assessment strategies by building brand image of the organization to be the most admired and aspired to • Step 4 : Retirement Preparation Programs work with by talented people as an Employer of Choices. In addition, Thaioil Group focuses on employee development through an evaluation, selection, and development process as part of a Talent Management System that not only creates skilled, good and dedicated employees but also supports high potential employees to progress to management level and become the leaders STEP 1 : who will drive the Group’s future business growth. For 2014, Thaioil Group still focuses on developing our work systems and employees to be ready to support business growth on a regional Thaioil Group is fully aware of the importance of employee planning and competency development which is addressed right level through our International HR System, an initiative developed to lay the foundation for all from the first interview through assessment of each candidate’s competency in the aspects of capability, experience, knowledge, HR activities, including employee selection for overseas work, employee development system, and perspectives of management in order to identify the candidate’s Currently Estimated Potential (CEP) and their expected performance management system, career management system, remunerations and benefits final position within the Group if they are given the opportunity to work with Thaioil Group. This in-depth planning process management, employee relations and all other administrative requirements during employees’ ensures that the potential candidate will be able to develop their careers in Thaioil Group. overseas assignments. Also with a focus on regional expansion, Thaioil Group has developed the Mobility Academy, an intensive project implemented in 2014 to prepare and develop employees In addition, Thaioil Group’s Career Development Plan provides direction for the development of each employee in accordance HUMAN RESOURCE FOR SUSTAINABILITY to be able to work overseas. with their competency and then allows the employee to acknowledge their Individual Career Plan as appropriate. Each of our employees is also required to develop an Individual Development Plan, which includes job rotation to improve their skills and knowledge as well as challenging assignments in accordance with the knowledge and skills which need to be developed for the employee’s existing and future positions in line with the Career Model for each discipline. HUMAN RESOURCE DEVELOPMENT For every position in every discipline, Thaioil Group has a Career Model which defines the expectations in the required knowledge, skills, experience and perspectives for the position. Career Model therefore provides a clear path for competency development of our employees. There are 700 career paths in total.
% % Each employee’s Career Development Plan is reviewed annually and has to be approved by the Discipline Human Resource Employees developed Individual Internal promotion rate 100Development Plan (IDP) 14.4 Committee chaired by the Executive Vice President of the relevant discipline and the Corporate Human Resource Committee
THAI OIL PUBLIC COMPANY LIMITED THAI OIL PUBLIC COMPANY chaired by the CEO and President and of which all Executive Vice Presidents from every discipline are members.
THAIOIL GROUP IS COMMITTED TO DEVELOP OUR EMPLOYEES TO GROW SIDE BY SIDE WITH OUR BUSINESS BY PROVIDING EQUAL OPPORTUNITIES FOR ALL PEOPLE AT ALL LEVELS TO DEVELOP THEIR COMPETENCIES FROM THE FIRST DAY RIGHT THROUGH RETIREMENT. 32 STEP 2 : STEP 4 : Thaioil Group has created courses to support the development of every employee in every level, from RETIREMENT PREPARATION PROGRAMS operational level through to management level, in order to provide appropriate opportunities for all our 1. Work-life balance for staff employees to develop themselves and prepare for their career development in accordance with the Thaioil For employees in the age ranges of 31-40 years old and 41-49 Group Development Blueprint, The blueprint consists of employee development in line with the Core Program years old, physical fitness test is provided, as well as an for 3 employee levels: employee level, management-to-be level, and executive-to-be level. understanding of work-life balance, and determine the most Thaioil Group has Human Resource Management Function appropriate financial planning course. responsible for strategic human resource development, Performer Development Program Employee Level 2. How to lead a healthy life after 50 employee development, remunerations and benefits, Leadership Development Program Section Manager Level Employees over 50 years old receive physical fitness test, and labor rights under human resource management Advanced Leadership Development Program financial planning before retirement courses, an attitude guidelines. Topics covered in the guidelines consist of Department Manager Level upwards Executive Development Program adjustment to live life in happiness so as to utilize the time labor rights in accordance with Thai labor laws and appropriately. the Universal Declaration of Human Rights, a grievance In 2013, Thaioil Group invested more than Baht 100 million in human resource development, which included 3. Happy Body and Soul for retirement process, and the confidentiality policy. In addition, both internal and external employee development for domestic and overseas workers. In addition, Work For employees due to retire within 1-3 years, this program Thaioil Group regularly communicates with employees Based Learning allows employees to apply their skills, knowledge and capabilities in real work situations, focuses on physical, psychological and emotional preparation through electronic newsletter and a monthly internal SUSTAINABILITY REPORT 2013 REPORT SUSTAINABILITY while external scholarships support education for society. including advice on financial management before and after journal called “Akanee” as well as various other channels. retirement. Health tips for the aged presented by financial AVERAGE HOURS OF TRAINING PER YEAR PER EMPLOYEE (BY CATEGORY) specialists and doctors from leading hospitals are also provided. In 2013, Major project supporting
business growth into the international level: 119 106 102 99 101 96 Employee level 90 79
71 Section/Division/
International Development 49 Department EMPLOYEE ENGAGEMENT THAIOIL GROUP BELIEVES THAT THE KEY SUCCESS management level 15 This employee development project is designed to 15 Executive level FACTOR TO ACHIEVE BUSINESS GOALS IS THE ABILITY develop foreign language skills and cultural TO ATTRACT AND RETAIN TALENTED PEOPLE TO WORK awareness in readiness for international business 2010 2011 2012 2013 IN THE ORGANIZATION, INCLUDING BUILDING THE communication, including general English AVERAGE HOURS OF TRAINING PER YEAR PER EMPLOYEE (BY GENDER) conversation skills with a focus on developing % MOTIVATION FOR EMPLOYEES TO PERFORM TO THEIR 124 confidence, making presentations in a foreign 123 FULL POTENTIAL. 95 92 language, learning about cultural diversity and 91 Employees Engagement Score 82 79 79 82.45 understanding how to behave in different cultural environments, all of which are intended to Male Thaioil Group provides first quartile remunerations and benefits compared to industry peers in a fair manner, by implementing Female prepare employees to adapt to future situations. the policy on remuneration management in line with the organization’s performance and connected to employees’ performance 2010 2011 2012 2013 as described below:
1. Short-term compensation Thaioil Group sets our levels of from every discipline in order to ensure fairness among
HUMAN RESOURCE FOR SUSTAINABILITY STEP 3 : compensation in line with those of other organizations in the employee group. Thaioil Group defines our performance assessment system at functional and individual levels by starting same industry in order to maintain and improve our • External Equity The Company sets our remuneration levels with Work Target setting, planning, follow-up, development, and assessment for individual key performance competitiveness in human resource management to the indicators. This ensures alignment with the performance management of each employee, function and organization. In addition, the Company sets a variable bonus comparable to other organizations in the same industry to organization by providing the credibility, correctness and fairness that are key to employee motivation. system that is tied to the organization’s annual financial maintain and improve the organization’s competitiveness performance as well as personal performance in order to in human resource. Performance Management System (PMS) motivate employees in management level to achieve the • Employee Contribution Thaioil Group links corporate Corporate KPIs each year. performance to individual performance under transparent Our Performance Management System (PMS) is a continuous process of measuring and assessing 2. Long-term compensation To retain and motivate the criteria to establish compensation related to performance knowledge, capability, development progress and effectiveness against specific work targets in line employees working for the organization to achieve longer term with Functional and Corporate KPI. The PMS is a tool to measure the performance of each individual at (Pay for Performance). goals, Thaioil Group sets a remuneration policy that includes a given moment and assess his or her readiness for promotion in terms of knowledge and capability. annual merit pay increases, compensation tied to salary, provident • Budget Administration The Company defines a framework for The PMS also enables any knowledge and skill gaps in the next career level to be identified. The results planning and controlling the budget for remuneration in are then used to determine the appropriate next steps of the Career Development Plan in both short fund, etc. The principles of Thaioil Group’s compensation accordance with the corporate budget plan. The plan is and long term. payments are as follows: THAI OIL PUBLIC COMPANY LIMITED THAI OIL PUBLIC COMPANY prepared with due consideration of ability to make short- and Performance evaluation is conducted 2 times a year: mid-year (June–July) and year-end (November– • Internal Equity In setting appropriate remuneration, Thaioil long-term payment based on a precise database that allows December). Performance and progress against Individual Career Plan and Indvidual Development Group considers job value, including the scope of responsibility Plan are annually reviewed through i-Link by line manager who can then appraise the Career Development of the position, which is determined by a panel made up of the budget plan to be revised instantly at any time during Plan of each employee and identify development actions such as training, on the job training and site external professional consultants and internal management the year in accordance with corporate performance. visits, etc. 34
EMPLOYEE REMUNERATIONS AND BENEFITS EMPLOYEE ENGAGEMENT
Thaioil Group evaluates remunerations and benefits for our employees on an annual basis to ensure the Thaioil Group has 1,282 employees, a 10% increase from the previous year, most of whom was accounted for by engineers and Company is able to maintain our first quartile position in the same industry by conducting a remunerations technicians hired in preparation for future business growth. Employee turnover rate in 2013 was 2.89%, which was very low and benefits survey so as to compare and define appropriate remunerations. In general, remunerations compared to the industry average of 5%. This demonstrates the confidence of our employees towards the future of Thaioil Group. and benefits for permanent employees include: • Housing benefit • Awards based on years of service EMPLOYEE ENGAGEMENT INDEX • Allowances • Compensation for emergency shift work • Bonuses • Personal protective equipment Thaioil group conducts annual employee engagement survey • Employer contributions to provident fund • Support in case of employee and family member in the fourth quarter of every year. Target • Employer contributions to social security bereavement Results from employee engagement survey in 2013 showed an 83 and workman compensation funds • Club and recreational activities
SUSTAINABILITY REPORT 2013 REPORT SUSTAINABILITY increase from the previous year to 82.45%, which is minimally • Medical benefits for employees and family • Thaioil consumer cooperative short of the target of 83%. The increased level of employee • Work uniforms • Thaioil savings cooperative engagement are the result of efforts made to address and • Group accident insurance improve the development areas identified in the findings of the Thaioil Group’s remuneration policy is based on role and responsibility, experience, and educational background previous survey including the Organization Health Index (OHI) with no discrimination between male and female employees. study initiative. However, Thaioil Group also believes that the improvement came about as a result of establishing a working EMPLOYEE RIGHTS team consisting of representatives from each function and the Labor Union to identify issues in need of improvement. The Employee 2010 2011 2012 2013 Thaioil Group upholds the Thai labor laws and regulations to define human resource management regulations Engagement Index was also one of the Corporate KPIs for 2013. under which child labor, forced labor, discrimination and anti-collective bargaining are prohibited. The regulations manual is distributed to every employee and is also available on the Company's intranet. Key issues identified from the 2013 Employee Engagement survey include: • Working environment THAIOIL UNION consultation on other specific matters by setting • Leading position of organization up various committees and working teams, such as • Total rewards Stretching back 39 years to 1975, Thaioil has a long the Occupational Health and Safety Committee, the • Growth opportunities history of good relationships with the Thai Refinery Club Administration Committee, the Provident Fund Union (Thaioil) under the principles of protecting Committee, the Savings Cooperative Committee, the In 2014, there is a plan to separately communicate the findings by functions together with to initiate improvement plan upon
HUMAN RESOURCE FOR SUSTAINABILITY the rights of employees as well as Thaioil’s business Consumer Cooperative Committee and the Salary the results. at the same time. Both parties focus on building Structure Working Team. a proactive relationship through workshops, informal Thaioil and the union periodically engage in collective meetings, training or seminars on labor laws and labor WHY DO YOU WANT TO WORK WITH THAIOIL GROUP? bargaining to seek agreement between the two parties. relations, and extending invitations to representatives Since the foundation of the Company, a collective of the union to attend analyst meetings etc. bargaining agreement has been reached in every Thaioil Group values the creation of home-like workplace, with the leaders as a role model in establishing an In addition, Company representatives meet with instance without need for external mediation environment of friendly work, enthusiasm, creativity and value for different ideas. At Thaioil Group, we respect each the Employee Committee to develop strategies for and judgment by the government. All such agreements other and do not place prejudice or discrimnation to others, with POSITIVE as our corporate value and it is in the heart improving benefits and addressing employee issues. are included in Thaioil’s terms of employment, or the of all employees at every level. Thaioil Group also has a tradition of building workplace relationships as part of one big To ensure meaningful communication between the two Blue Book. happy family through several company activities, such as the Songkran Water Blessing Ceremony for elders; Thaioil parties, the ratio of representatives from the employer In addition, Thaioil has established mechanism to Group New Year Party etc., as well as activities especially for employees’ families, such as the TOP Group Summer and employee side is 50:50. The meetings are held receive and handle employee grievances and Camp. Thaioil Group does not only provide our employees with remuneration packages and career opportunities to every 2 months and minutes are taken of every meeting. ensures confidentiality. In the previous year, the prove ourselves as an employer of choice, but we also offer friendship, family and understanding so that our employees In addition to these formal meetings, the Company Company received 3 employment-related grievances, will walk together with us. THAI OIL PUBLIC COMPANY LIMITED THAI OIL PUBLIC COMPANY has established means of discussing and providing all of which were addressed and resolved immediately.
Currently, 627 persons or 49% of all Thaioil Group employees are members of the Union. 36 OCCUPATIONAL HEALTH AND SAFETY
“SAFETY BEGINS WITH YOU.” IS THE WHOLE-HEARTED RESPONSIBILITY Thaioil Group has developed safety policies, procedures and work insructions as well as Thaioil's term of emtloyment OF ALL WORKERS IN THAIOIL GROUP. ALONG THESE 53 YEARS, THAIOIL (Blue Book), Chapter 11. The Blue Book has been certified by both the organization and the Labor Department. All employees GROUP HAS TAKEN THE SAFETY FIRST AS A SERIOUS DUTY. WE MOVE must comply with prescribed practices and procedures when starting work and are required to report all potential hazards and dangers to their supervisor. million FORWARDS WITH EFFICIENT MANAGEMENT SYSTEM AND QSHE (QUALITY, SAFETY, OCCUPATIONAL HEALTH AND ENVIRONMENT) THAT HAVE BEEN
SUSTAINABILITY REPORT 2013 REPORT SUSTAINABILITY Working hours of employees and6.5 contractors without OUR STRONG FOUNDATION FROM THE BEGINNING TO ENSURE TRUST OCCUPATIONAL HEALTH AND SAFETY PLAN EMPLOYEE HEALTH PROMOTION lost time injuries AMONG OUR STAKEHOLDERS. WE DENY THE SUCCESS DERIVED FROM AT LEAST ONE INJURIES. Our Group has developed the Occupational Health and Safety Plan with both short-term goals (1 year) and long-term 2014 PLAN goals (5 years). The performance indicators have been set To improve and enhance the Safety, Security, Occupational and communicated to all people concerned with their Health and Environment Management System in compliance implementation in the following areas: with the 5-year roadmap. Case To improve and enhance safety leadership in the workplace. Thaioil Group promotes a proactive approach to occupational Chemical spills during 1. Safety, security and environment management production process0 which “Safe White Green” for employees and contractors health management. Health risk assessments are part of To improve and enhance process safety by focusing on affect people, community our standard occupational health and safety management additional leading indicators. 2. Safety leadership or equipment above the system. Exposure assessments are used to identify and accepted limit. To integrate crisis and emergency management. assess employee health risks and develop appropriate 3. Occupational health management exposure control measures, identify work activities that 4. Process safety may be at risk, and measure and assess risk factors so as SAFETY COMMITTEE to review existing preventive measures. We also carry out
OCCUPATIONAL HEALTH AND SAFETY HEALTH OCCUPATIONAL SAFETY 5. Crisis and emergency management regular checks on employees’ health to detect any signs COMMITTEE 1 employer of harm. representative as We have implemented our Work Process Improvement (WPI) the chairman of the committee Thaioil Group’s Occupational for the development and enhancement of safety management The health of employees is monitored during the spread Health, Safety and Environment in the following procedures: of infectious diseases such as Bird Flu, influenza, etc. by Committee was established to 4 supervisor assessing work areas regularly. We disseminate the representatives as 1.Identify and select processes for improvement appropriate information to all employees who are at risk of take responsibility for providing the members a safe working environment for exposure to the diseases when performing their duties in 2. Identify the needs of stakeholders and establish process all employees, developing safety high risk areas, such as employees in charge of business 1 professional requirements policies and procedures for the safety officer as development who need to travel overseas. work place, providing safety a members and secretary 3. Review current processes equipment, training employees 4. Analyze processes in safe work practices, and 5 employee representatives THAI OIL PUBLIC COMPANY LIMITED THAI OIL PUBLIC COMPANY (50% of all committee members) conducting regular inspections 5. Establish processes required for implementation elected by the committee and investigations. appointed by the company 6. Make continuous improvements to our work standards 38
TOTAL RECORDABLE INJURIES-EMPLOYEE Our Major Activities in 2013: SAFETY 1 0 1 0
HEARING CONSERVATION PROGRAM FIT FOR WORK PROGRAM Thaioil Group places great emphasis on safety in the organization. Personal 0.60 No employees in our Group have ever suffered from Noise 0.55 safety is of major concern to us and this lead
SUSTAINABILITY REPORT 2013 REPORT SUSTAINABILITY Induced Hearing Loss (NIHL). However, in order to prevent and to the Group’s safety culture which ensures reduce possible occurrences of NIHL, we have developed the 0.00 0.00 that our business will continue to operate in the long term. hearing conservation program. A noise contour map was produced 2010 2011 2012 2013 from the results of our measurements and assessments, and Our major safety activities last year were as follows: injuries (case) per million manhours the sources of noise were then managed. Warning signs are posted when the noise levels in the workplace are greater SAFETY LEADERSHIP PROGRAM than 80 dB(A). All employees and contractors are encouraged Safety leadership program to wear hearing protectors when working in the process areas LOST TIME INJURIES–EMPLOYEE aims to develop and promote and to take hearing test for the prevention of early stage hearing safety leadership and maturity loss. From this program, the risk of NIHL will be further reduced in the workplace for all in the future. employees and contractors under the principles of OFFICE ERGONOMICS ATTENTION 2010 2011 2012 2013 the Group’s safety culture. Office workers who use Number of 0 0 0 0 In 2012, we outlined a framework for developing and injuries (case) computers for a long time promoting safety leadership in our Safety Leadership Lost time injury 0.00 0.00 0.00 0.00 without taking breaks are Manual for the Workplace. This year our Group is focusing frequency rate
OCCUPATIONAL HEALTH AND SAFETY HEALTH OCCUPATIONAL (per million manhours) potentially exposed to Our Group focuses on making sure on communication and implementation of the framework ergonomic stress and office the physical state of our employees is through the following activities: syndrome, and their work fit for work. We have assessed high efficiency can be affected risk work practices, such as working • Safety Leadership Training for Thaioil group’s employees From our continuous improvement and monitoring in 2013, accordingly. Occupational health specialists and physicians in confined space, working at height, • Safety Leadership Events the rate of employees’ total recordable injuries was reduced from 0.60 to 0.00 and there were no employee lost time have assessed the ergonomic risk factors of all at-risk groups; etc. We plan to assess the employees • Management walk and talk made recommendations on rearranging their workstations, office injuries. who have health problems such as • Potential Incident Report (PIR) to promote employee equipment, and positions; and advised them to take frequent high blood pressure, diabetes, heart awareness and accident prevention breaks from their work activities. disease, etc.; those who are undergoing
Thaioil Group provides a safe working environment so that medical treatments but able to all our employees remain in a good mental and physical state, continue working; and employees who which in turn leads to work effectiveness and efficiency. are overweight with a BMI (Body Mass
THAI OIL PUBLIC COMPANY LIMITED THAI OIL PUBLIC COMPANY The Group’s business operations continue to operate sustainably Index) higher than the approved in the long term. In the past 53 years, based on the assessments standard. These measures can reduce of occupational health physicians, not one Thaioil employee the risk of accidents caused by health or contractor has suffered from occupational injury or illness. problems. 40
“SAFE WHITE GREEN” PROJECT TOTAL RECORDABLE INJURIES-CONTRACTOR ENHANCEMENT OF PROCESS SAFETY PHASE 2
Last year Thaioil Group established ‘Thaioil Group Operation 7 Excellence Management System (TOP Group OEMS)’ which 5 5 Safety is one of the elements in “Security, Safety, Health and 4 Environment (SSHE),” resulting in a significant review and SUSTAINABILITY REPORT 2013 REPORT SUSTAINABILITY 0.86 revision of Safety, Health and Environment Management 0.69 Manual to be complied with OEMS’s requirements. We 0.61 focused on enhancing safety management in our production 0.39 processes which is taken as key performance indicator in 2010 2011 2012 2013 department level.
injuries (case) per million manhours In the past year, we found zero oil and chemical spills in any The Safe White Green Project aims to develop With these activities, Thaioil group’s business can processes which can cause effect to people’s health, the and promote the management of safety (Safe), continue to operate safely in the long term, free environment, property and community (as defined in Tier 1 and security (White) and environment (Green) in from drugs, illegal acts and environmental impacts. Tier 2 of API RP 754 standard) cooperation with our contractors so as to achieve Employee participation: the missions and objectives of the Thaioil Group. LOST TIME INJURIES–CONTRACTOR EMERGENCY AND CRISIS RESPONSE PHASE 2 All supply chain operations shall be safe and free 1. Follow the practices and regulations in connection with safety. from drugs and illegal items, and shall not affect the We reviewed and revised environment or cause problems for the communities 2. Check the work environment and equipment 1 1 1 the Emergency and Crisis surrounding the refinery. The following strategies regularly and report problems which may cause Response Manual to cover 0.14 OCCUPATIONAL HEALTH AND SAFETY HEALTH OCCUPATIONAL are implemented: injury, affect the environment, or involve illegal 0.12 potential emergency scenario. 0.08 activities for immediate solution. The roles and responsibilities 1. CEO communicates the Safe White Green policy to 3. Report problems or make recommendations in 0.00 of our security officers were the top management of all contractor companies. connection with the safety, security and environment; 2010 2011 2012 2013 reviewed in compliance with 2. The top management of all contractor companies implement problem solutions and preventive injuries (case) per million manhours the new regulations. We trained the emergency response and expresses their intention of implementing the measures to ensure that the incident does not firefighting teams. We checked and maintained the fire policy and developing their own Safe White Green occur again. protection equipment to be in ready-to-use condition. We held policy in compliance with our policy. From our continuous improvement and monitoring in 2013, 4. Avoid the use of illegal drugs and engagement crisis and emergency plan drills in different levels to practice 3. The Safe White Green policy is developed into the rate of contractors’ total recordable injuries was reduced in illegal acts. all newly planned procedures, such as Table Top Exercise the action plan which is put into practice in the from 0.86 to 0.39 and the rate of contractors’ lost time injuries and Emergency Exercise, etc. With all of our people now better 5. Reduce waste or garbage at the point of generation, relevant areas or departments. was reduced from 0.12 to 0.08 prepared to face a range of emergencies with the necessary sort and separate waste properly, and focus on 4. We set the Leading Indicators to measure the well-maintained equipment, they are fully-prepared to respond environmental benefits. policy’s efficient implementation. to emergencies efficiently and safely. THAI OIL PUBLIC COMPANY LIMITED THAI OIL PUBLIC COMPANY 5. We monitor and improve the results on a regular basis. 42 THAI OIL PUBLIC COMPANY LIMITED WE : PEOPLE'S WELL-BEING SUSTAINABILITY REPORT 2013 PRODUCT • SUPPLIER • RAW • SUPPLY CHAINMANAGEMENT CUSTOMER • CUSTOMER • OUR CUSTOMERS CORPORATE • IMPACT • COMMUNITY • OUR COMMUNITIES AND SOCIETIES ENVIRONMENT AND HEAL ENVIRONMENT AND
MATERIALS
ON
RESPONSIBILITY AND
PRIVACY RELATIONSHIP COMMUNITY,
SOCIAL DEVELOPMENT
CONTRACTOR
AND
RESPONSIBILITY
TRANSPORT
TH
MANAGEMENT
MANAGEMENT WELL-BEING ATION PEOPLE’S WE
WHERE WE OPERATE.WHERE WE SOCIETIESTO THE CREATEAS WELLTO VALUES BUSINESS TOGETHER SUSTAINABLEBUILD THE US TO GOALS ANDASPIRATION WITH STAKEHOLDERSSHARE WHO ARE ONEOFOURKEY PARTNERSCOMMUNITIES AND OUR CUSTOMERS, BUSINESS STAKEHOLDERS’ VOICES. VALUE OUR
44 OUR COMMUNITIES AND SOCIETIES
2014 CORPORATE SOCIAL RESPONSIBILITY PLAN THAIOIL GROUP COMMITS TO SUSTAINABLE COMMUNITY DEVELOPMENT TO GAIN TRUST AND SOCIAL LICENSE TO OPERATE - Um Phang – Energy Sufficiency City in honor of H.M. the King, Tak Province (continuing) BY CREATING VALUES TO LOCAL COMMUNITIES AND TO THE - Biogas production from rubber sheet production waste and household organic waste, and hydroponics systems (Phase 2), households SOCIETY IN ORDER TO CREATE MUTUAL SUSTAINABLE GROWTH Mak Noi Island, Phang-nga Province (continuing) - Coral farming and rehabilitation of coral reefs at Si Chang Island, Chonburi Province (continuing) SUSTAINABILITY REPORT 2013 REPORT SUSTAINABILITY 2,347 TOWARDS INDUSTRY, ENVIRONMENT AND COMMUNITIES. WE FOCUS ON PROMOTING LIFE QUALITY IN THE COMMUNITIES - Hydropower plant at Ban Mae Jo Community, Chiang Mai Province (organic agriculture development and community forest WHERE WE OPERATE BY ENCOURAGING PEOPLE WELL-BEING rehabilitation) and public service buildings IN TERMS OF HEALTH, EDUCATION AND POTENTIAL SKILLS, 8 INITIATIVE PROJECTS (UNDER FEASIBILITY STUDY) Benefit from Renewable Energy AND ALSO FOCUS ON DEVELOPING AND PROMOTING THE USE - Canal water for sufficiency economy project (Phase 3) in Buriram Province for Community and Energy OF RENEWABLE ENERGY BY PRODUCING CLEAN ENERGY FOR - Ecological system development project in Khao Pu Bai, Chonburi Provinnce Efficiency Projects THE REMOTE COMMUNITIES WHERE THERE IS NO ACCESS TO - Project in collaboration with PTT Group including the establishment of higher education institution and science school in Rayong Province PUBLIC UTILITIES.
2014 COMMUNITY DEVELOPMENT PLAN
Thaioil Group believes that the strength and self-dependence of In 2013, Thaioil Group invested around 47 million baht in livelihood - Community health survey project (FAP 1) the community and society are key factors for our sustainability. development projects for communities surrounding our refinery as • Ban Chak Yai Jean Community Corporate Social Responsibility (CSR) is one of the key missions of well as for communities in remote rural areas. We successfully • Ban Khao Nam Sub Community Thaioil Group. Our CSR programs can be divided into 3 levels achieved the business objectives and needs of the community - Metabolic screening project (FAP 2) persons as follows: and society. > • Talad Ao Udom Community • Production process management in compliance with Elderly Care (FAP 3) OUR COMMUNITIES AND SOCIETIES OUR COMMUNITIES Benefit50,000 from community relation - environmental policy and sustainable refinery energy (CSR projects and services in Thaioil • Ban Thung and Ban Laem Chabang Community in Process) Group Health and Learning Center • Ban Ao Udom Community for Communities • Corporate Social Responsibility for communities in the vicinity Thalassemia or carrier screening project (FAP 4) - of our refinery (CSR for Community) • Wat Manorom Community • Corporate Social Responsibility for society at the national level Drug use monitoring project - (CSR for Society) - Dentistry and oral health project - Laem Chabang youth development project for rope Thaioil Group encourages our employees to participate in skipping championship activities and projects that benefit society so as to promote - Science camp for children living in the vicinity of the refinery the spirit of volunteering and share our CSR policy among all % - Youth leadership development project for the environment stakeholders in order for them to understand and engage 97.81Community Satisfaction Score in the same CSR practices continuously and systematically. INITIATIVE PROJECT Initiation of crab bank project, Ban Ao Udom Community THAI OIL PUBLIC COMPANY LIMITED THAI OIL PUBLIC COMPANY - 46
DEVELOPMENT OF THE COMMUNITIES Community Assessment Program: FAP 1. Fourth year students 2013 MAJOR COMMUNITY from the Faculty of Nursing, Burapha University were assigned IN THE VICINITY OF THAIOIL GROUP’S REFINERY DEVELOPMENT PROJECTS to conduct the community health survey at Wat Manorom and Ban Chak Yai Jean Communities. Family data and community For more than 50 years, Thaioil Group has recognized the importance of learning and AND ACTIVITIES IN SUMMARY maps were made and recorded in electronic data files. Activities responding to the needs and expectations of the 7 communities in the areas where were organized to solve local health problems and develop the Wat Manorom and Ban Chak Yai Jean Communities. Most of the we operate. While operating our business and expanding project developments, PUBLIC HEALTH AND COMMUNITY SUSTAINABILITY REPORT 2013 REPORT SUSTAINABILITY LIFE QUALITY DEVELOPMENT PROJECT activities were related to the control and prevention of pests, we have supported and organized a variety of activities that promote environmental such as mosquitoes, ants, rats, cockroaches, etc. Simple but improvement, education, health, local arts and community culture. Thaioil Group believes that a effective techniques were demonstrated to the communities, healthy community is a key such as rat poisoning oleander, cockroach control herbs, etc. priority because it brings The family data files have about a better quality of PROMOTION OF SUSTAINABLE DEVELOPMENT IN THE COMMUNITY been analyzed and organized life for the people who live Thaioil Group has initiated the Principle of Tripartite model, or Ao Udom model, to set the framework in order to plan behavior there. Since 2010, Thaioil and strengthen the cooperation between Thaioil Group, local communities and local government change for improved health. Group and the communities offices. A regular monthly meeting is held for the 3 sectors with the involvement of community leaders Activities have been held surrounding our refinery to reduce risk factors for and committee members; the Public Health and Environment Office, the Social Welfare Division, Laem established the Thaioil Group Health and Learning Center for diabetes, high blood pressure, Chabang Municipality; and representatives of Thaioil Group. The objectives are to exchange ideas and Communities. Over 140,000 people have used the public library, and obesity (FAP 2). All people find solutions for the issues that are relevant to the development of the community, as well as to settle dental clinic, multi-purpose community area, Buddhist shrine, over 35 years old with risk factors have been diagnosed, monitored any complaints that the community may have. and recreation and exercise area. Young children, students and screened. A “Health Promotion” event was organized to and adults of all ages have taken the opportunity to use the share useful knowledge and promote physical activities such center. In addition, as we focus on community health, we have In addition, Thaioil Group has as the long stick exercise, yoga, and Qi Gong, while health care TRIPARTITE DEVELOPMENT MODEL (AO UDOM MODEL) established the Community and Preventive Medicine Project. The established the guidelines for handbooks for high blood pressure prevention have been Thaioil Community Health and Learning Center for communities community development based distributed. In addition, the health problems of the elderly in the demonstrates how a business and its surrounding communities OUR COMMUNITIES AND SOCIETIES OUR COMMUNITIES EDUCATION on the Public Office’s guidelines communities, those aged 55 years or older (FAP 3), have been NON-GOVERNMENTAL can coexist peacefully and in harmony with each other. EDUCATIONS ORAGNIZATION/ for economic and social development diagnosed by the Faculty of Pharmacy, Silapakorn University. LEARNING PROJECT COOPERATION KNOWLEDGE R People aged 15–35 years old in the Ban Thung and Ban Laem EA AGREEMENT L C and has created projects that C A & N ING EN R COMMUNITY AND PREVENTIVE MEDICINE PROJECT IO LV C E Chabang Communities received Thalassemia or carrier screening N T O O A A S U & address the needs of the local IP M R E MUNICIPALITY S L C E C A I L O G H C T B (FAP 4) in cooperation with the Thalassemia Center, Siriraj E R O - A M A R O R P E people. These projects have P P E N In 2013, the Principle Y E & T T R Hospital and Laem Chabang Hospital. Accurate DNA blood tests I T A & N N T
U S ENVIRONMENT E I been developed from discussions ENERGY O U of Tripartite comprising M M
N
P
P were taken, and the results were used to analyze the risk factors
M
P
O
O
O
L COMPETENCE
C R
E that took place in the Principle
T representatives of the
V
E of developing cancer over the next 5-10 years. This project D P TOP GROUP R of Tripartite meetings to ensure Thaioil Group, a network of 7 A M has been very successful in providing great benefits to health H I S X & communities, and public & COMMUNITY that the community is fully aware T T E care and family planning in the local communities. M T R R P A C RU PO O T O ST UP P A M & AC IES S UP H offices such as Laem Chabang C M TIVIT S S of each project’s benefits and H UN ES ITY’ VITI S CSR AND ACTI Municipality, Laem Chabang Last year, Thaioil Group made a financial contribution to the SELF EXPERIENCE is ready to cooperate with the AO UDOM HOSPITAL & EXPERIMENTATION Hospital and Village Health construction of a 5-storey emergency building for Laem Chabang HEALTH KNOWLEDGE COMMUNITY KNOWLEDGE local public offices for project Volunteers (VHV) developed the proactive medicine project. Hospital to provide emergency response services for the area. QUALITY OF LIFE development. A community health survey was conducted under the Family and The building is expected to be completed in 2015. THAI OIL PUBLIC COMPANY LIMITED THAI OIL PUBLIC COMPANY SD : Society: Economy: Environment 48
COMMUNITY HEALTH PROMOTION PROJECT ENVIRONMENTAL PROJECT COMMUNITY COMMITTEE POTENTIAL a Rope Skipping Championship in Chonburi to recruit DEVELOPMENT PROJECT qualified people for the National Rope Skipping Every year, Thaioil Thaioil Group is fully aware of the importance of nurturing Championship Royal Cup, with approximately 400 Group develops knowledge and skills in local communities to support the people participating in the competition. Thaioil Group environmental development of society, the environment, the economy, covered all travel expenses for the national competition, projects for H. M. religion and culture. The “Community Leader” serves as and representatives of local schools won 10 of the 20 the King and H. M. an opinion leader and coordinator between the community categories. the Queen on the and the refinery; therefore, auspicious occasion the Community Committee EDUCATION AND LEARNING SUPPORT PROJECT of the royal birthdays. FOR COMMUNITIES Potential Development With the support of 7 surrounding communities, Laem Thaioil Group and Laem Chabang Hospital Project has been developed Chabang Municipality, neighborhood schools and Ao Udom have joined forces to provide dentistry and In 2013, Thaioil Group to visit other communities to fishers, we organized the Ao Udom Revival Project, which SUSTAINABILITY REPORT 2013 REPORT SUSTAINABILITY oral treatment services for students in Grades and a number of exchange ideas, skills and involved several releases of Blue Swimming Crabs into Ao Udom; 1-6 at 8 schools surrounding the refinery employee groups such experiences. This year, Thaioil Group will organize field trips for the the Ecological System Development Project, a nature surveying and developed a Dental Health Project for as the Thaioil Refinery Community Committee to Phitsanulok, Sukhothai, Nakhon Sawan mission at Khao Pu Bai; and the Green Communication Project. the Surrounding Schools. We have provided Workers Union, Thaioil and other nearby provinces for relationship development. We also jointly established the Coordination Center and funds for Proactive Health Promotion for Savings Cooperative, Environment and Community Relations Committee in Surrounding Communities from June 2010 Senior Employees Club, RELATIONSHIPS AND PARTNERING PROMOTION PROJECT cooperation with various departments from the refinery so as to strengthen the efforts of community Thaioil Alumni and Employee Volunteers Association, and the community relation section for the development health and medicine promotion. We have also supported education on a regular basis in the form of During the “Principle of Tripartite” of proactive measures and a 24-hour operation plan. developed a “Vibrant Communities” project Thaioil Scholarships for students in Laem Chabang meetings of Thaioil Group, local with physical activities such as aerobics, long Municipality. A total of 217 scholarships were offered for communities and Laem Chabang stick exercises and yoga, while a playground primary, secondary, and university level students. RELIGION, CUSTOMS AND CULTURE PROJECT Municipality in 2013, the “Ao Udom The Graduates for Hometown program included a number Zero-Waste Community Project” and exercise equipment have also been provided Thaioil Group has of special scholarships, including scholarships for was developed. The Principle of for local residents to use at the Thaioil always valued nursing students to study a Bachelor of Nursing degree Tripartite managed the project systematically and a community Community Health and Learning Center. community activities at Burapha University and work as professional nurses environment fund was established for managing waste in which promote the at Laem Chabang Hospital, while there were also the community. Other projects include Open House, Open Mind: preservation of scholarships for the Automotive Innovation Project Thai Youth at the Refinery; the Ethics Bank in Ao Udom cultural traditions of Kasetsart University, Sri Racha Campus. Community; the Young Community Ambassadors; and Children OUR COMMUNITIES AND SOCIETIES OUR COMMUNITIES and major Buddhist and Student Development for Community Sustaiability In addition, Thaioil Group established the Living Library festivals in the Management. These projects were managed at Thaioil Group and developed a number of projects and courses for local communities where we operate. Cooperation with the Health and Learning Center for Communities in purpose of community members, including the Watercolour Painting communities includes exchanges of ideas, discussions, planning exchanging ideas and knowledge, participating and sharing. and Craft Project, English for Kids at the Thaioil and implementation.The activities organize by the Thaioil Group Another health initiative supported by the Community Health and Learning Center, the Rope and Community Committee include the Praying and Meditation Thaioil Group conducted a survey of economic, social and environmental problems in the community. About 400 students Thaioil Group is the Rope Skipping for Heart Skipping Training Project for students in surrounding Project held monthly on the 14th day of the waxing moon at the Project, which aims to promote good health, and teachers at Wat Laem Chabang School were suffering schools, the Biogas Production Project for villagers, the Buddhist Shrine in Thaioil Community Health and Learning Center reduce the risk factors of heart disease and Biogas Production Project for the Community at Wat Mai due to a shortage of water. In response to this situation, where a statue of Buddha Rattana Mongkol Sakol Prachanartmunee increase the sense of unity in the community Noen Payom School, and a Science Camp Project. The we developed the Water Tank Project for Wat Laem Chabang is located, the Candle Offering Project for 9 Temples in through group skipping activities. Last year, students and children received prestigious awards from School. A water tank with a capacity of 13 cbm was built to Laem Chabang in which around 700 people from the communities Thaioil Group and the Heart Foundation these project developments. Students from 8 different improve life quality and well-being of the students and teachers trained 80 teachers and students in Advanced schools were awarded a total of 10 Royal Cups and 103 participated, and the Songkran Festival in the communities where there. The success of the project promotes strong relationships Rope Skipping for Heart at the Thaioil Community medals in all categories of the 7th Rope Skipping we operate. In addition, we participated in reviving a traditional between Thaioil Group, our business partners, the community THAI OIL PUBLIC COMPANY LIMITED THAI OIL PUBLIC COMPANY Health and Learning Centers and 8 Championship Royal Cup 2013 held by Thai Heart folk dance by supporting the activities of the Laem Chabang Folk and local public office. With its value, Thaioil Group has planned surrounding schools. Thaioil Group also held Foundation under Royal Patronage. Dancing Group as part of our policy of preserving cultural traditions. to build water tanks for other schools in need as well. 50
COMMUNITY BULLETIN To make an EIA report for COMMUNITY DEVELOPMENT IN REMOTE AREAS OF THAIOIL GROUP each project, at least 2 The “Our Community” bimonthly bulletin provides formal meetings are held in information and updates on the activities of Thaioil order to listen to the opinions In developing “Remote Areas” or Thaioil Group encourages the participation of residents in Group as well as the local communities where of all stakeholders. The communities in remote areas with the community in order to reduce the gap between urban we operate. The bulletin also promotes stronger meeting results are included no access to public utilities, society and rural society by utilizing local natural resources relationships and understanding, and provides in the EIA report and presented to Office of Natural Thaioil Group, its alliances and which require no investment. This is achieved by creating an opportunity for the community to exchange Resources and Environmental Policy and Planning as specialists in various fields of awareness of natural rehabilitation such as of local forests information or opinions with us. well as all other concerned authorities. At the time of expertise focus on developing and or water sources in accordance with local culture and tradition.
SUSTAINABILITY REPORT 2013 REPORT SUSTAINABILITY project implementation, Thaioil Group shall send its utilizing alternative energy from The ongoing development process improves the life quality operating report to the Office of Natural Resources local natural resources as well of people in the community by promoting the creation of an IMPACT ON COMMUNITY, and Environmental Policy and Planning as well as all as on promoting the optimization of resource utilization energy self-reliant community. ENVIRONMENT AND HEALTH concerned authorities every 6 months throughout the for sustainable development pursuant to the philosophy of term of the project so as to communicate all positive sufficiency economy. Thaioil Group believes that people and negative results in the area to the stakeholders. engagement is very important In 2013, Thaioil Group had 4 projects approved following Thaioil Group has a Corporate Social Responsibility Policy and has just reviewed the Corporate Social Responsibility for environment and community the submittal of EIA reports.We are currently Strategy in 2013 as follows: management. To prevent Thaioil preparing EIA reports for 2 additional projects. Group’s operations from adversely affecting the environment and to develop environment Thaioil Group has sustainability management for the surrounding established the “Thaioil THAIOIL GROUP CSR POLICIES THAIOIL GROUP CSR STRATEGIES communities, we protect and monitor the quality of Environment and 1. Strive to develop the business’s sustainable growth 1. Focus: project/activity that have high impact to the business the environment in the areas where we operate, with Community Relations with environmental stewardship and care for community a focus on air quality, seawater and underground Committee” comprising 2. Selective: Energy/Environment/Education/Quality of life safety and earnest support to society water quality, and diversity of sea life. From our representatives of internal 3. Network/Collaboration: well-known institution and PTT group inspections, the environment quality meets the function in the refinery and the community relation 2. Support and develop society by applying Thaioil’s
OUR COMMUNITIES AND SOCIETIES OUR COMMUNITIES function. The top management of operations serves as standards of Thailand. Apart from that, when a change extensive strengths, expertise, and experience in 4. Participation: enhance stakeholder participation with focus the Chairperson and is the authorized decision-maker. in our operations from a new project or project energy business to CSR projects on “AOU-UDOM Model” expansion has the potential to have impacts on the Thaioil Environment and Community Relations 3. Implement CSR projects to benefit society, both at the (Community–Thaioil–Municipality), CSR in Supply Chain environment, we conduct an Environmental Impact Committee Meetings are held each month. community level (around the refinery) and at the national (Customer–Vendor) and Employee Volunteer Assessment (EIA) to analyze possible positive and In addition, Thaioil Group has established the level (in localities without access to public utilities) negative results from project development in 4 key Community Relations function to be responsible for areas pursuant to the Notification of Natural working directly with the communities where we operate. 4. Focus on using natural energy sources instead of wasting Resources and Environment and EIA guidelines of Thaioil Group has also provided communication them, under the Sufficiency Economy Philosophy of the Office of Natural Resources and Environmental channels for receiving questions, suggestions, concerns, maximizing local resources Policy and Planning (ONEP) as follows: and complaints from the community through the
1. Physical resources such as air quality, water community leader, through Thaioil community affairs quality, soil quality staff, by complaint letter, and via a 24-hour hotline. 2. Biological resources such as animals, plants or Last year, we received 68 cases, only 1 of which was THAI OIL PUBLIC COMPANY LIMITED THAI OIL PUBLIC COMPANY other living things caused by Thaioil Group and for which corrective 3. Human use values such as drinking water, water action was taken. All cases are stored in the central for household use, electricity, traffic system for investigation and follow-up within 24 4. Quality of life in terms of economic, social and hours because cooperation is usually needed from public health factors several departments. 52
PARTICIPATION IN COMMUNITY DEVELOPMENT (COMMUNITY NEEDS ASSESSMENT) 2013 MAJOR CORPORATE SOCIAL RESPONSIBILITY PROJECTS AND ACTIVITIES IN SUMMARY 1 2 3 4 “GREEN ENERGY MECHANISM” in 4 key areas which are 1.Education, 2. Public Health, 3. Environment, and 4. Security. Thaioil Group has continued Um Community Community Building CSR PROJECT Needs Potential alliance with Understanding Organize Create Organize Follow up Phang – Energy Sufficiency City in honor of H. M. the King after the Assessment and Basic experience community workshop systematic a public and assess in cooperation with the Energy for Environment project started in 2012. We developed different types of renewable (Public Needs and culture and on energy knowledge space to the project Hearings) Assessment expertise in beliefs management transfer gather results Foundation (EforE) and the Department energy such as hydropower, biomass, biogas and solar cell, etc. SUSTAINABILITY REPORT 2013 REPORT SUSTAINABILITY CSR projects (Do/Don't) opinions periodically of Alternative Energy Development and Efficiency (DEDE) We also promoted knowledge and understanding of using renewable energy produced in the community. The project implementation leads HYDROPOWER PLANT POWER GRID EXTENSION PROJECT AT to public acceptance as an organization responsible for environment HUAY POO LING COMMUNITY, CHIANG MAI PROVINCE preservation. This project reduces the gap between urban society 1. Community Needs Assessment (Public with them the knowledge they need to manage and rural society and promotes the establishment of energy Hearings) To explain and build collaboration, to the projects by themselves. The project performance A grid was installed to expand the coverage of the power supply self-reliant communities. understand community's uniqueness and efficiency pursuant to the CRS policy is assessed to 6 villages, totaling 236 households or over 1,000 people and competency, to know the demands or requirements by a third party company. After Community Needs 8 public places. in each community, to organize a public hearing Assessments, the following processes will be with community leaders and folks. developed into projects: HYDROPOWER PLANT AT BAN MAE JO COMMUNITY, INTEGRATED HIGHLAND LIVELIHOOD DEVELOPMENT CHIANG MAI PROVINCE IN MAE HONG SON PROVINCE 2. Community Potential and Basic Needs • Organize workshop on energy management Assessment To determine the community By allied representatives and employee volunteers A 35 kW Hydropower plant was Different types of renewable willingness and to respond to the community who are specialized in energy. developed and built from the Huay energy were developed in needs. Mae Rerm Reservoir Project of remote areas in cooperation • Create systematic knowledge transfer To establish H. M. the King’s initiative. This with the United Nations 3. Building CSR alliance with experience and the Community Committee, focus on self- project promotes electricity Development Programme expertise in CSR projects To use the strength management based on the community handyman security for the community of 111 households as well as generating (UNDP), such as hydropower, and energy knowledge in CSR project principle and give knowledge to the communities.
OUR COMMUNITIES AND SOCIETIES OUR COMMUNITIES income from selling electricity back to the Provincial Electricity biomass, biogas and solar cells. We also promoted sustainable development in cooperation with the private • Organize a public space to gather opinions Authority. A small community enterprise has been set up in order energy and natural resource conservation. In 2013, a solar charge development organizations and educational To listen to the opinions of experienced people to operate an electricity system and use part of the income to controller (Set 2) was installed at Ban Ruam Thai (Pang Ung) institutions that are specialized and accepted in the communities and give knowledge to the develop organic agriculture and promote the use of organic fertilizer Community, Mok Jam Pae Sub-district and served 32 households. by the society such as the Energy for the communities. and bio-pesticides. Activities have been organized for teenagers to Environment Foundation, Thaksin University, In addition, local people were trained on “Solar Home Maintenance • Follow up and assess the project results preserve and rehabilitate the community forest. Phatthalung Campus, the Education & Public Techniques” at Mae Suad Sub-district. This workshop brought To use assessment results to improve Welfare Foundation, the UNDP etc. periodically benefits to the villagers using solar home systems in the following the projects. UM PHANG – ENERGY SUFFICIENCY CITY 4. Understanding community culture and beliefs IN HONOR OF H.M. THE KING, TAK PROVINCE 3 sub-districts: (Do/Don’t) One of Thaioil Group’s CSR Thaioil Group promotes the “Volunteering Spirit” of the • Tamlod Sub-district: brought benefits to 4 villages, 287 households A Commemorative Project to commitments is to develop communities in employees to participate in the projects and activities celebrate the auspicious occasion • Maeyuam Sub-district: brought benefits to 2 villages, 181 remote areas to be models of energy self- for the good of society on a regular basis, and encourage of H. M. the King’s 84th Birthday households reliance through the use of alternative energy all employees to initiate CSR activities through the Anniversary and to improve the life • Maesuad Sub-district: brought benefits to 11 villages, 1,196 and through forest and water resource “Thaioil Group Employee Volunteers Fund” so as to
THAI OIL PUBLIC COMPANY LIMITED THAI OIL PUBLIC COMPANY quality of people in the community households management. In the process of this development, create awareness, promote the spirit of volunteering we encourage the communities to participate in for society and develop teamwork skills and problem the projects from the start and we regularly share solving in a systematic framework. 54
RENEWABLE ENERGY PROJECTS IN SUFFICIENCY ECONOMY PROJECT CSR VOLUNTEERING ACTIVITIES WITH EMPLOYEE IN 2013 COOPERATION WITH OUR ALLIANCES (CANAL WATER) IN BURIRAM PROVINCE • Employee volunteering activities such as plastering the walls at the power plant, landscaping and building in cooperation with the dams for local communities at the hydropower plant at Ban Mae Jo Community, Chiang Mai Province. Education and Public Welfare • Canal building activities (phase 2) donating fish species and seeds to farmers; employee volunteering Foundation. We developeda activities include painting walls at Nong Talumpook Temple and the Canal Water for Sufficiency Economy natural water resource Project in Buriram Province. management system by building a water supply for WASTE MANAGEMENT FROM RUBBER SHEET agriculture pursuant to the sufficiency economyphilosophy. CSR ACTIVITIES IN COOPERATION WITH CSR THAIOIL GROUP PRODUCTION WASTE AND HOUSEHOLD ORGANIC The community leader and villagers were trained in water SUSTAINABILITY REPORT 2013 REPORT SUSTAINABILITY WASTE, MAK NOI ISLAND COMMUNITY, PHANG-NGA, STAKEHOLDERS IN 2013 EMPLOYEE VOLUNTEER FUND supply management and agriculturalplanning. In 2013, WITH BIOGAS PRODUCTION SYSTEM AND TOXIC FREE • Thaioil Group offered 102 HOME-GROWN VEGETATION FOR COMMUNITY HEALTH the project was developed in 3 villages. A 150-meter-long In 2013, there were 26 employee scholarships for high achieving concrete drainage system was built at Ban Lim Thong-Thai volunteer projects approved by the students from 16 educational Thong Community. The 1,350-meter-long Krok Ma Khuea Fund Committee. These projects institutions in Thailand for the Canal was built at Ban Nong Thong Lim Community. promote the initiation of activities development of human resources, A 700-meter-long canal was extended from Ban Nong for the good of society and increase the promotion of knowledge and ability, as well as the development Ta Khian to Ban Chok Chai Community. The project brought employees’ awareness. benefits to 180 households and promotes the development of society and the nation. • Project for sponsoring children’s day activities of Ruamjai 8640 of community potential and agriculture, especially crop • Thaioil Group offered 195 scholarships for Thai students Sri Racha Group rotation outside the regular planting season. at educational institutions in Laem Chabang Municipality and Sri Racha District in 2013 and 11 scholarships for educational • Project for building toilets for Nongprue Prachasan School institutions in the vicinity of the refinery. ENVIRONMENTAL PROJECT • Project for developing society and promoting educational quality • Thaioil Group and partner for Srisomboon Pattana School in cooperation with Thaksin University, Phatthalung CORAL FARMING AND THE REHABILITATION companies conducted corporate • Project for developing education for Chumchon Wat Taprik School Campus, Phase 1 (2012-2013). The biogas OF CORAL REEFS AT SI CHANG ISLAND, social responsibility activities in (Chariya Uppatham) CHONBURI PROVINCE (CONTINUING OVER A PERIOD system was installed for 104 households which the CSR-DIW 2013 project for the saved cooking gas costs of approximately 160,000 OF 5 YEARS FROM 2011–2015) • Project for rehabilitating Koh Samed in Rayong from oil spills
OUR COMMUNITIES AND SOCIETIES OUR COMMUNITIES construction of a water well for baht per year and reduced organic waste by in cooperation with the children at Wat Laemchabang School. • Project for developing education for Ban Thungna School, Nongped about 130,000 liters per year. This project was Department of Marine and Coastal Sub-district, Srisawad District, Kanchanaburi Province • Thaioil Group and customers released snappers into the sea expanded to include “Toxic Free Home-Grown Resources, the Aquatic Resources • Project for assisting 19 households of Thaioil Group’s employees Vegetation”. The fermentation sludge from the at Ao Prao, Koh Samed, Rayong Province. Research Institute, and the Faculty and family members from flood disaster in Thailand biogas production system was used as organic of Science, Chulalongkorn University. In order to increase • Thaioil Group donated items to people suffering from fire fertilizer to reduce the use of chemical fertilizer in the potential for coral farming and the rehabilitation disaster at Ban Maesurin Refugee Camp, Koonyuam District, • Project for providing clean drinking water at Ban Nongbon Tanchaopa School, Lamnangrong Sub-district, Nondindaeng local farming. During Phase 2 in 2014, the system of coral reefs, we built a coral propagation facility at Mae Hong Son Province. District, Buriram Province will be installed for 30 households. Upon completion Samaesan Island, Sattahip District in 2013. We plan of Phase 2, almost half of all households on the to develop the coral propagation facility to become a island will have the biogas system. In 2014, marine ecosystem learning center for all people to take Thaioil Group’s board of directors and chief executive officer realize the importance of CSR policy and strategy the new “Hydroponics” system will be added to advantage of. Our primary focuses were on promoting development. For this reason, we have established a department specifically to be in charge of the communities in cultivate toxic-free home-grown vegetables with knowledge regarding the rehabilitation of coral reefs and the areas where we operate as well as remote communities. We develop CSR projects that allow communities to the use of the fermentation sludge from the biogas on strengthening the community. We organized an event participate at the beginning. We cooperate with local public offices to transfer knowledge and inspire an ownership
THAI OIL PUBLIC COMPANY LIMITED THAI OIL PUBLIC COMPANY production. From the success of this project, Mak at Si Chang and trained children on how to set up a junior spirit among people in the local communities. In the end, the projects will continue even after Thaioil group leaves Noi Island is seen as a “Southern Biogas System marine club. We also plan to organize a field trip for the areas. Learning Center”. the surrounding communities to observe the activities. 56 OUR CUSTOMERS
CUSTOMER DATABASE SYSTEM THAIOIL GROUP STRIVES TO ENHANCE THE RELATIONSHIPS CONTINUOUS IMPROVEMENT WITH OUR CUSTOMERS THROUGH UNDERSTANDING THEIR After successfully developing our customer EXPECTATIONS AND ADAPTING TO DRIVE THE CONTINUOUS In addition to customer satisfaction and engagement which are the leading relationship management system, Thaioil has established efficient customer data % DEVELOPMENT AND IMPROVEMENT OF OUR PRODUCTS AND performance indicators for our organization, Thaioil has set a number of commercial Customer Satisfaction management and customer information SERVICES AS WELL AS WORK PROCESSES SO AS TO RESPOND indicators, such as increased sales volume, number of new customers, number SUSTAINABILITY REPORT 2013 REPORT SUSTAINABILITY 89and Engagement Score security systems to catalog profile information, TO OUR CUSTOMERS’ NEEDS QUICKLY AND EFFICIENTLY FOR of complaints and suggestions, and number of factory visitors. Monthly functional product demands, purchasing behavior etc. THE LONG-TERM BUSINESS CONTINUITY AND SUCCESS OF meetings are held to monitor the results with the concerned departments e.g. These data are stored in the database and BOTH THAIOIL GROUP AND OUR CUSTOMERS. CUSTOMER production unit. Besides, Commercial Management Committee (CMC) meetings the system then provides customers with a convenient channel of communication SATISFACTION AND ENGAGEMENT LEVELS THUS HAVE BEEN are presided over by the Group’s Chief Executive Officer and held to review the progress and obstacles of development and improvement. Thaioil also cooperates such as telephone to access information ONE OF MATERIAL LEADING PERFORMANCE INDICATORS OF with the Thailand Productivity Institute in order to observe the prevailing and data. The customers will receive better THAIOIL GROUP. service because our system is updated guidelines of other industries and apply those guidelines to the Company as well. case regularly. 2014 PLAN Thaioil has also developed customer data Complaint on customer’s protection measures. Data level access data leakage0 To improve grievance mechanism through I-Care system. E-ORDERING PHASE II control includes employees only being In 2013, Thaioil developed E-ordering Phase II which focuses on able to access information that their level To provide training and cultivate awareness among employees of authorization allows and Thaioil assigns in charge of customer service at all levels. increasing the number of lorry loading customers. This system reduces transaction errors, saves time, and provides convenient access for our data level access control for all employees. The access authorizations are given and customers through a user-friendly system. changed every 3 months or upon position OUR CUSTOMERS change. Every data access authorization CUSTOMERS’ NEEDS RESPONSE is stored in the system. To date, we have never received any complaints about CUSTOMER SATISFACTION AND ENGAGEMENT customer data loss. Thaioil Group values customers’ voices and keeps responding promptly to their needs in terms of delivering the high quality products,
before and after sales service, and the right price. Thaioil Group Thaioil and our affiliated companies CUSTOMER SATISFACTION AND ENGAGEMENT With its results, the Company has taken also has the Customer Relations function in purpose of listening to conduct a customer satisfaction and a continuous improvement on work customers’ opinions expressed through various channels, such as engagement survey every year by a Target processes through conducting workshops in face-to-face meetings with customers, through discussions with third party so as to ensure unbiased among concerned persons and customers the relevant officer-in-charge, or by email: [email protected], opinions are expressed by our customers. in order to improve service efficiency facsimile, website, call center as well as communicating newsletters. The survey covers 6 key areas: 2010 2011 2012 2013 and to keep commitment as well as to Apart from that, we use annual customer satisfaction and engagement • Satisfaction with the organization create awareness for employees on the survey to gather comments or suggestions which will be collected, • Product quality The result of satisfaction and engagement importance of efficient responding to analyzed and acted upon to drive improvement. the customers’ needs. In addition, we plan • Operational services survey in 2013 achieves an overall score of THAI OIL PUBLIC COMPANY LIMITED THAI OIL PUBLIC COMPANY • Technical services to continue enhancing our competitive In 2013, we received 78 complaints and suggestions concerning 89%, higher than the target of 87% and good • Transaction efficiency advantage in market place by improving products and services by email and face-to-face discussion. • Product price. performance compared to industry peers. our logistics management standards. All complaints were completely closed and continuous improvement is being taken. 58 SUPPLY CHAIN MANAGEMENT
In 2012, Thaioil Group initiated the Feedstock THAIOIL GROUP FOCUSES ON MANAGING MATERIAL RISKS IN RAW MATERIALS AND Co-loading Project with other oil companies both in OUR SUPPLY CHAIN IN ORDER TO REDUCE OUR ENVIRONMENTAL TRANSPORTATION vol Thailand and in foreign countries because sometimes 0.21 IMPACTS AND GENERATE BENEFITS FOR THAIOIL GROUP AND a ship used for transporting Thaioil’s crude oil is not Volume of crude oil loss during marine transportation OUR BUSINESS PARTNERS FOR THE SUSTAINABLE DEVELOPMENT fully loaded, so other companies’ crude oil can be
SUSTAINABILITY REPORT 2013 REPORT SUSTAINABILITY OF SOCIETY. co-loaded to achieve maximum efficiency. From this, Thaioil Group’s cost was reduced by approximately CRUDE OIL SUPPLY Baht 100 million in the past year. 2014 Plan Thaioil Group purchases crude oil from international oil companies e.g. the U.S., Europe, Singapore, and commits not to • CSR in Supply Chain Project of Thaioil Group was initiated in 2011 and has run continuously in purpose of: acquire crude oil from boycotted countries. Thaioil Group has CRUDE OIL LOGISTICS MANAGEMENT 1) Encourage the contractors and suppliers in Thaioil Group’s supply chain to be part of direct and indirect established a crude oil purchasing process and database development of society, local communities and the environment, as well as in self-development To develop transportation efficiency, Thaioil Group monitors so as to ensure the quality, meet the requirements and pursuant to the international standards of corporate social responsibility. loss during marine transportation (Ocean Loss) which is a key identify the source of all crude oil purchased. 2) Promote and increase the potential for corporate social responsibility of the contractors and suppliers performance indicator. In 2013, the Ocean Loss Index was 0.09% in Thaioil Group’s supply chain. In addition, Thaioil Group updates our crude oil procurement by weight or 0.21% by volume, which was lower than the 3) Promote a strong corporate image and collaboration based on the concept of collaborative sustainable plan on a monthly and yearly basis in order to respond to control value prescribed at 0.5% in the same industry. In 2014, growth. market demands, crude oil prices and crude oil quality. Thaioil Group’s targeted Ocean Loss Index is 0.20% by volume. In 2013, Thaioil Group purchased more than Baht 300 billion • Develop policy to communicate Supplier Code of Conduct pursuant to the Corporate Governance guidelines of crude oil. for business responsibility, ethics, fairness, transparency and accountability, and to strengthen relationships with business partners and suppliers in the supply chain for sustainable growth. SUPPLY CHAIN MANAGEMENT SUPPLY ENERGY CONSUMPTION FOR TRANSPORTATION OCEAN LOSS INDEX • Develop a plan for promoting and strengthening relationships with the contractors and suppliers in the The marine transportation of crude oil for Thaioil’s refining supply chain. This is one of the strategic plans of Thaioil Group’s purchasing and procurement policy, process requires high fuel consumption in addition to the fuel 0.5 although the management and development techniques will vary depending on the types of contractors required in the production process. For this reason, Thaioil (Standard target) and suppliers. Group has developed a logistics management system for
transporting raw materials via both Thaioil Group's ships 0.25
• Implement and enhance feedstock co-loading product, co-sell, swap products with neighboring refineries 0.21 0.19 and those of our contractors. Under this system, Thaioil Group 0.19
for cost benefits. 0.15 adjusts the ship speed in each schedule in line with the current 0.11 demand for crude oil. 0.09
Thaioil Group is fully aware of the opportunities and risks in the supply chain process, ranging from 0.05 crude oil suppliers, ships birthing at Thaioil’s port, business partners and contractors transporting goods For 2013, the fuel consumption for marine transportation and raw materials, and customers purchasing goods and services from Thaioil in Thailand and in foreign was about 2,800 tons per sailing (40-45 sailings per year) 2010 2011 2012 2013 countries. Therefore, efficient and integrated supply chain management is of major importance to Thaioil Group. or a total of 2,844,355 liters, equivalent to 113,120 GJ, which %WT %VOL generated 218,879 tons of carbon dioxide equivalent. THAI OIL PUBLIC COMPANY LIMITED THAI OIL PUBLIC COMPANY 60
The Ocean Loss can occur during SUPPLIER In 2014, Thaioil Group plans to establish and communicate the Supplier Code of 3 main processes: AND CONTRACTOR Conduct for clarity and transparency in business operations pursuant to the • Loading loss while transferring Corporate Governance principles in relation to supply chain management. crude oil from port to ship (Loading MANAGEMENT
SUSTAINABILITY REPORT 2013 REPORT SUSTAINABILITY Loss) THAIOIL GROUP ESTABLISHES INDICATORS OF ENVIRONMENTAL, SOCIAL • Transit loss between the origin and SELECTION OF SUPPLIERS AND CORPORATE GOVERNANCE SO AS TO EVALUATE SUPPLIERS’ destination points (Transit Loss) AND CONTRACTORS CSR IN THE "CSR IN SUPPLY CHAIN" PROJECT AS FOLLOWS: • Discharge loss while loading crude Thaioil Group has reviewed the oil from tanker to storage tank management process of suppliers and 1) Develop supply chain vendor list, Tier 1-which means a vendor with a (Discharge Loss) contractors for efficiency. Thaioil Group direct agreement with Thaioil Group. conducts systematic screening and 2) Assess negative impacts on society and the environment. evaluation of suppliers and contractors. 3) Prioritize significances IN 2013, THAIOIL GROUP ESTABLISHED THE FOLLOWING PROJECTS AND ACTIVITIES As part of the evaluation process of 4) Select a vendor from the prioritization results. TO PREVENT OIL LOSS: all suppliers and contractors, all supporting documents in connection Assessment Criteria with the management of environment • Crude Online Sampler-an automatic sampling • Installation of pump for line packing after quality and safety as well as occupational 1. The value of the vendor’s products and/or services is significant compared system enables the accurate properties analysis obtaining long residue of Thai Lube Base Public health must be submitted to Thaioil to the total purchasing value which means that the value of the products of the crude oil. Co., Ltd. (TLB) and long residue used as a Group in order to be checked for compliance and/or services should account for top 80% of the total purchasing value. with the law, e.g. labor law, environment reinforcing agent of Thai Tokai Carbon Product 2. The vendor’s products and/or services are necessary and critical for • Crude Oil Washing (COW)-a system whereby oil law, and all regulations and rules which
SUPPLY CHAIN MANAGEMENT SUPPLY Co., Ltd. (TCP) so as to reduce oil contamination the production process, and Thaioil’s business would be adversely affected tanks on a tanker are cleaned out to reduce cover human rights and management and loss during transportation. without the vendor. Critical products and/or services are divided into ocean loss. systems. Thaioil Group has established 3 groups as follows: • Study of temperature guage installation on oil the Integrated Management System (IMS) • Improvement of work process to minimize crude oil receiving pipeline from buoy SBM-2 so as to and Enhanced Safety Management i Catalysts loss while loading crude oil from tanker to storage measure temperatures accurately for the pursuant to the international management ii Chemicals for the process tank. standards and Occupational Health calculation of crude oil volume received. iii Other process materials e.g. gas or water, required for the processes. • Random inspection of process when loading crude and Safety Management Systems (TIS/ Since 2006, Thaioil Group has assessed the quality OHSAS 18001). 3. The vendor’s products and/or services cannot be substituted or provided oil from tanker to storage tank to maintain of all tankers (Ship Vetting) pursuant to the elsewhere. compliance with the process pursuant to However, before any supplier or International Convention for the Prevention of From the assessment of suppliers which had significant impacts on the international standards. contractor can be included in Thaioil Pollution from Ships in terms of prevention of water Group’s Approved Vendor List, verification business of Thaioil and its affiliated companies as stated in the above criteria, • Oil Movement Improvement Project by placing pollution from oil spills, prevention of water pollution is required. Their performances shall be there were 170 qualified suppliers and those suppliers were included valves and their positioning system along the from hazardous chemical transportation, and control reviewed on a yearly basis pursuant to in the supply chain Vendor List, Tier 1, and the suppliers were selected of waste discharged from ships into the sea. THAI OIL PUBLIC COMPANY LIMITED THAI OIL PUBLIC COMPANY pipeline route so as to avoid errors when loading. Thaioil Group’s standards. from the prioritization results as stated above. 62
RESULTS OF Thaioil Group and Mitsui & Co., Ltd. Thaioil Group has assessed the risks potentially NUMBER THAIOIL GROUP’S PRODUCT RESPONSIBILITY POTENTIAL RISK OF SUPPLIERS % jointly invested over Baht 12 billion posed by suppliers and contractors to the environment, ASSESSMENT in an LAB (Linear Alkyl Benzene) society and corporate governance (ESG) caused Thaioil is the largest petroleum refinery in Thailand. In 2013, Thaioil had a refining in the supply chain process. The major identified capacity of 279,940 barrels per day, or about 26.6% of the nation’s overall production plant incorporating the potential risks are contractors’ safety when working Safety Risk 21 28 refining capacity, which is 512,570,000 GJ of energy or 38,210,634 tons of carbon latest UOP innovation – the world’s
SUSTAINABILITY REPORT 2013 REPORT SUSTAINABILITY dioxide equivalent. Our major product is base oil to blend with natural fuel for in our areas and reputational risk in case of contractors’ most advanced and environmentally- the production of biodiesel and gasohol at a rate of 110,745 barrels per day. non-compliance with the law. However, Thaioil Group friendly technology. LAB is a key raw is now developing risk management in the supply chain Reputational Risk 4 5 Thaioil Group’s products help reducing greenhouse gas emissions throughout material for use in cleaning products which shall be presented in the future. their lifecycles, the biodiesel, gasohol and ethanol release fewer greenhouse and cleaning agents. In 2012, the gases than fossil fuels. The products sold in 2012 and 2013 were compared below: demand for LAB in the world market was around 3.2 million tons per year THAIOIL WAS AWARDED CSR-DIW IN SUPPLY CHAIN ADVANCE LEVEL 5 ALTERNATIVE PRODUCTS UNITS 2012 2013 at a growth rate of about 2-3% per year, Volume of Gasohol sales Million liters 737.9 1,065 or about 70,000–100,000 tons per In 2013, Thaioil Group participated in “Corporate Volume of Biodiesel sales Million liters 91.38 94.10 year, with the highest growth rate Social Responsibility-Department of Industrial Volume of Base oil sales Million liters 5,440 5,246 being in Asia. Works” or “CSR-DIW Advance 5” in cooperation to blend with natural fuel This year, the joint venture represents with 2 business alliances–Air Liquide (Thailand) a major project involving cooperation Co., Ltd. and Eastern Water Resources Thaioil Group’s Ethanol Business between Thailand and Japan. This Development and Management Public Co., Ltd. project will create more jobs and –in order to develop appropriate Corporate Thaioil Group has established Thaioil Ethanol Co., Ltd. to produce biofuel as enhance economic growth by Social Responsibility Guidelines. Members of the an alternative energy made from renewable raw materials which will replace SUPPLY CHAIN MANAGEMENT SUPPLY non-renewable fossil fuels and reduce greenhouse gas emissions that lead to an replacing Baht 3.5-4.0 billion community and Thaioil’s employee volunteers increase in global temperatures. Ethanol business produces pure ethanol to blend worth of LAB import per year and built a “Water Tank with a Capacity of 13 cbm with gasohol base oil for gasohol production. At present, there are 3 production generating additional income at for Wat Laem Chabang School”. Before the project implementation, Thaioil and our business partners plants processing fuel from sugarcane and cassava with an investment cost least Baht 6 billion per year. The held meetings to discuss the project development with representatives of Wat Laem Chabang School and of Baht 1,660 million. In 2013, the ethanol sales were 187 million liters and the project can enhance Thailand’s the local community with the aim of improving the life quality of people in the community. All projects greenhouse gas emission rate was lower than other fuels at approximately 56%. competitiveness for achieving a implemented by Thaioil and communities throughout the period reflecte the sustainable coexistence of leading position when entering into the business and the communities. It was the aim of Thaioil to develop the life quality and wellbeing Thaioil Group has developed projects to develop a wide variety of high quality, environmentally-friendly products such as a project to produce EURO IV specification the ASEAN Economic Community of people in the community, and to help children with health problems caused by water shortages. oil products, which was initiated in 2007. The project was extended to produce (AEC) and strengthen the good The participation of the community and of relevant public offices was encouraged pursuant to the 95-octane and 91-octane gasoline pursuant to EURO IV specification whereby relationship that has existed between requirements of CSR-DIW Advance 5. Thaioil Group is 1 of 7 factories that has been granted with CSR- the sulfur content is 10 times lower. In the past year, 130,732 barrels per day the two countries for a long time. DIW Advance 5 Award, which is the highest award of CSR-DIW. Thaioil also received a CSR-DIW Award of fuels refined by Thaioil were in compliance with the EURO IV specification. in recognition of being an organization in compliance with the prescribed standards for a continuous In order to gauge the demand for products and determine which of those products period of time. will be developed, Thaioil provides a communication channel for customers via the THAI OIL PUBLIC COMPANY LIMITED THAI OIL PUBLIC COMPANY Customer Relations Section so as to be in a position to respond to the demands of customers and the market as quickly as possible. 64 WORLD ENVIRONMENT WELL-BEING SUSTAINABILITY REPORT 2013 REPORT SUSTAINABILITY
ENVIRONMENTAL MANAGEMENT • Emission Control • Effluent and Waste Management EMBRACE THE WORLD.
THE ENVIRONMENT IS OUR
WORLD : ENVIRONMENT WELL-BEING ENVIRONMENT WORLD : ENERGY EFFICIENCY AND CLIMATE CHANGE HABITAT GIVING US RESOURCES • Energy Efficiency Improvement AND SERVICES WHICH THAIOIL • Climate Change Risk Assessment GROUP ASPIRES TO MAKE THE WORLD THE BETTER PLACE THROUGH ENERGY EFFICIENCY OIL AND CHEMICAL IMPROVEMENT AND CONTINUOUS SPILL PREVENTION • Spill Response IMPROVEMENT OF THE WAY WE • Maritime Disaster Prevention Measures MANAGE OUR ENVIRONMENTAL IMPACTS.
WATER MANAGEMENT • Water Supply • Water Risk Management THAI OIL PUBLIC COMPANY LIMITED THAI OIL PUBLIC COMPANY • Consumption and Quality 66 THAI OIL PUBLIC COMPANY LIMITED ENVIRONMENTAL MANAGEMENT SUSTAINABILITY REPORT 2013 MANAGEMENT ENVIRONMENTAL its operations. actionsAll environmentsrelated of of the potential impacts management systematic efficiently.management It also facilitates the which the outresourceThaioil Groupcancarry workunder environmentrelated a frameworkfor health andenvironment.occupational This constitutes ofquality, themanagement ISO 14001)for safety, various standards (ISO 9001, TIS/OHSAS 18001 and systems, management integrated which are in line with responsibility of Thaioil Group. withThis isassociated health, environment, andsocial management energy quality,policies for security, safety, occupational toits responsibility tosocietyandcreatesfirmly initsmission,As stipulated Thaioil Groupadheres management incidents management Environmental 0 Examining development programs for tracking the carbon footprint of trackingthecarbonfootprint for Examining developmentprograms Thaioil Group wastemanagement Integrating therefineriesof systemfor Developing anairpollutionmanagement Thaioil Group second phase(2012-2014) inthe water directionsandthequalityofsoil underground Implementing researchesonflow (continued) ofenvironmentaldata themanagement asystemfor Creating work(continued) environmentrelated Setting aimsfor 2014 PLAN The policy www.thaioilgroup.com/en systemcanbefound at anddetails ofmanagement Case
LONG-TERM SUSTAINABILITY. IMPROVEMENTS TOACHIEVECONTINUOUS FOR INTERNAL AUDIT CONFORMITY WITH RELEVANT REGULATIONS, AND CONDUCTING IDENTIFYING PROBLEMS AND REGULATIONS, EVALUATING THE CHANCES FORIMPROVEMENTOF THE GROUPBYSTARTING AT ENVIRONMENT. SUCH AN ENVIRONMENTAL FOCUSCREATES CONCERNING QUALITY, SAFETY, OCCUPATIONAL HEALTH AND MECHANISM FORMANAGINGRISKS AS WELL AS ISSUES MANAGEMENT SYSTEMCONSTITUTES A SYSTEMATIC ENVIRONMENTAL MASTER PLAN WITH AN INTEGRATED ENVIRONMENTALPERFORMANCES THROUGHTHEDRIVING
health andsafetydepartment. plan withotheroperations, suchasoccupational department canlinkenvironmental management their operations more effective. In addition, the safety department. outThe departmentcancarry quality management, healthand occupational departmenttobeunderenvironmental management internal structureoftheenterprise, movingan In thelastyear, theThaioil Grouphasreformed basis.Thaioil Grouponayearly can beset. executivesoftheThis iscarriedoutby improvements guidelinesfor are revisedsothat
business and energy security.business andenergy process tomaintainabalancebetweencompetitivenessin offueltypesusedintheproductiondue tochangesintheratio oftheburnershadbeenimproved.efficiency The increasewas dioxide increasedincomparisonto2012, eventhoughthe In 2013, however, emissionsofoxidesnitrogenandsulfur fromdirectcombustion.nitrogen releasedtoatmosphere was madeinordertodecreasetheamountofoxides in operation. This investmentofmorethanBaht1,860million 362 ultra low NOx Burners, gas,which can fire natural are now exchangers andburnerstoultralowNOxBurners. A totalof Since 2012, Thaioil Grouphaschangedandimprovedheat OXIDES OFNITROGEN AND SULFURDIOXIDE EMISSION CONTROL SULFUR DIOXIDE OXIDES OFNITROGEN Thousand Tons Thousand Tons 2010 2010
6.27 2.87 0.53 0.11 2011 2011
8.35 3.02 0.42 0.10 2012 2012
4.74 2.66 0.09 0.51 Tons per Tons per throughput throughput 2013 2013 Thousand Tons Thousand Tons
5.41 3.93 0.37 0.20
68 THAI OIL PUBLIC COMPANY LIMITED ENVIRONMENTAL MANAGEMENT SUSTAINABILITY REPORT 2013 management canbemadeintime.management diagnosis of ofairpollutantshasbeendeveloped. thedissemination factors affecting Therefore, airquality area of Thaioil Groupincomparisonwithstandardvalues. Parallely, thedevelopmentofsystematic In addition, tocheckambientairqualityinthesurrounding programs Thaioil Grouphasimplementedfollow-up effluent treatment system. treatment effluent ofefficiency the By this we can improve discharge totheenvironment.before online ChemicalOxygenDemand(COD) by Thaioil Groupmeasuresqualityofeffluent DEMAND INEFFLUENT CHEMICAL OXYGEN resource used. ofdischarge andmaximizeefficiency inordertominimize effluent of treated studyingtheuseThaioil Groupiscurrently TREATED EFFLUENTDISCHARGED WASTE MANAGEMENT EFFLUENT AND VOLATILE ORGANICCOMPOUNDS the concentration of volatile organic compounds could be reduced by morethan99percent. couldbereducedby organic compounds ofvolatile the concentration atmosphere. In experiments with this system, insome resultssources, showthat and the transformation to Carbondioxide(CO and thetransformation bacteria.facultative organiccompounds withthedecompositionofvolatile Itisassociated withaerobicbacteriaand organicsubstancesintheatmosphere volatile eradicates compounds emittingfromproductionprocessesthroughtheuseofbiofilter. The system organic toreducetheamountofvolatile Thaioil Grouphasimplementedprograms
CHEMICAL OXYGEN DEMAND INEFFLUENT TREATED EFFLUENTDISCHARGED Tons Million m 2010 2010 3
150.75 4.26 0.20 2011 2011 2 136.32 4.09 0.16 ) and water (H ) andwater 2012 2012
136.91 4.04 0.17 2 m O) emittedtothe 3 per tonsthroughput 2013 2013
121.08 2.43 0.17
will bepresentedin2014. Currently, all departmentsconcerned. studiesandresearchesarebeingcarriedoutonthisissueby Detailsofthestudies In addition, targetof aimsascorporate policythat weadheretothewastemanagement “zero wastetolandfill” 2020. by missions andpoliciesof Thaioil Group. landfills. by is furtherdisposedoff Waste hierarchysystemallows maximumuseofresourceinlinewithenvironmental asfirststep, fromoperations waste generated wasteseparation, by followed reusingandrecycling. The remainingwaste of minimization at focusing by wastedisposalmanagement Thaioil Grouphasimplementedwastehierarchysystem for WASTE DISPOSAL
70
Thaioil Group has implemented projects such as the reduction GREENHOUSE GAS EMISSIONS ENERGY EFFICIENCY of greenhouse gases in our production processes by increasing energy efficiency, turning waste heat into electricity etc. AND CLIMATE CHANGE Similar activities of our business partners include the transportation of products by low fuel consumption vehicles etc. In addition, Independent Power (Thailand) Co., Ltd. has been separated from Thaioil Group; therefore, the Group’s direct 2010 2011 2012 2013 (Scope 1) and indirect (Scope 2) greenhouse gas emissions Total GHG emission (million tons of carbon dioxide equivalent) THE USE OF FUEL FOR THAIOIL'S OPERATIONS IS THE were reduced by 50% or about 2 million tons. Volume per unit of production of refinery (tons per ton of throughput) KEY CONTRIBUTING FACTOR OF GREENHOUSE GAS GENERATIONS. IN RESPONSE TO THIS, THAIOIL GROUP tons HAS DEVELOPED PLANS TO CONTINUOUSLY IMPROVE SUSTAINABILITY REPORT 2013 REPORT SUSTAINABILITY ENERGY EFFICIENCY IMPROVEMENT ENERGY CONSUMPTION EFFICIENCY TO REACH THE TOP ~14,500of carbon dioxide emission reduction from energy efficiency improvement QUARTILE POSITION BY 2018 AND TO MAINTAIN OUR Thaioil Group manages energy efficiency through the Energy and Loss Committee which consists of representatives from all and hydrocarbon loss prevention projects EXCELLENCE IN THE COUNTRY AND THE REGION. relevant departments including the operation process and management. The Committee is responsible for managing energy for the group, developing an energy efficiency master plan, establishing measures to conserve energy and prevent oil loss, monitoring results against identified targets, and establishing energy efficiency projects. In addition to reducing greenhouse gases from 2014 PLAN combustion, the energy efficiency has brought about reductions in production costs as well. The Committee regularly reviews and revises the master plan in order to ensure it suitable with domestic and global energy situations. To set up an energy conservation and oil loss prevention Community of Practice
Project for Communication and knowledge sharing in energy savings In 2013, Thaioil Group has implemented the following energy • Crude Distillation Unit 3 (CDU-3) applying Energy Management conservation activities: System: ISO 50001 to existing energy management • Crude Distillation Unit 2 (CDU-2) maintenance as planned in with plan to extend certifications to other production units Thaioil Group believes that climate change may affect competitive advantage in the future in terms of fuel May in order to improve heat exchanger efficiency for energy at Thai Lube Base Public Co., Ltd. and Thaioil’s affiliates. prices, control measures or government support, natural disasters and changing climate. Thaioil Group saving and highest production capacity. From the above implementations, Thaioil Group could save up has assessed the climate change risk and identified the requirements for energy efficiency development. • Thermal Cracking Unit (TCU) maintenance as planned in May to 234,943 GJ of energy and reduced operating costs by We aim to reduce Energy Intensity Index (EII) by 1–1.5 per year in order to reach the Top Quartile in order to improve heat exchanger efficiency. Baht 95 million, leading to the Energy Intensity Index (EII) position by 2018. • Reducing steam usage at Crude Distillation Unit 1 (CDU-1) of 82.1 compared to the target of 81.0. It represented an by not operating gas oil dryer which leads to medium improvement on the EII of 2012 due to reduced production ENERGY EFFICIENCY AND CLIMATE CHANGE AND CLIMATE ENERGY EFFICIENCY has also developed measures to reduce the risks which may pressure steam saving of 5 tons per day. volume at the end of 2013 and production unit maintenance, CLIMATE CHANGE planned or unplanned, which led to a greenhouse gas emission impact oil prices or to the control of energy consumption • Flue gas heat recovery at High Vacuum Distillation 3 RISK ASSESSMENT reduction to 14,503 tons of carbon dioxide equivalent. which produces high volumes of greenhouse gases, such as by increasing Boiler Feed Water flow to Air Pre-heater. the installation of 362 dual oil and gas firing burners or 81% • Convection bank tube replacement at High Vacuum Unit 2 In 2012, Thaioil Group and external ENERGY INTENSITY INDEX (EII) of the total burners in the refinery. (HVU-2) furnace in order to increase heat transfer specialists studied and assessed the efficiency and reduce fuel consumption. possible impacts from climate change and However, Thaioil Group has established guidelines for greenhouse • Reducing overhead pressure of Isomerization column in 82.6 82.1 82.1
domestic fuel price fluctuations, and gas reduction and efficient energy consumption by realizing order to reduce steam consumption. 78.3 there were no findings suggesting the necessity of addressing the issues of global warming • Reducing pressure in gas separator at HDT-3 in order to re any likely significant impact in the near even though it is not predicted to have any direct impacts in the duce energy in distillation tower. 2010 2011 2012 2013 future. near future. We also closely follow the United Nations Framework
THAI OIL PUBLIC COMPANY LIMITED THAI OIL PUBLIC COMPANY Convention on Climate Change (UNFCCC) and participate in In addition to engaging in continuous Thaioil Group received the PTT Best Practice Platinum Award, one of the Best Practice Awards of PTT Group, for using steam energy efficiency development which can activities that will promote the use of mechanisms and guidelines in furnace at CDU-3 for the highest optimization. Because Crude Distillation Unit 3 reduced the steam usage in its furnace, this reduce energy consumption, Thaioil Group for greenhouse gas emission management in Thailand. solved the problems of distillation temperature, increased the high-value jet fuel production, reduced the low-value naphtha production and reduced steam costs, generating additional profits of approximately Baht 204 million per year. 72 THAI OIL PUBLIC COMPANY LIMITED OIL AND CHEMICAL SPILL PREVENTION SUSTAINABILITY REPORT 2013 SPILL PREVENTION CHEMICALOIL AND PTT andEsso. inSriRacha(IESG SubSriRacha)withAssociation Environmental Safety Groupwith the Oil Industry The drillswerealsoconducted incollaboration oilbooms. theport on howtolay at and officers where Thaioil Grouptrainedthecrews ontheships theactual locationsThe drillswereconductedat Top Exerciselevel. actions, OilSpill andproblemsolutionsat Table everyone’s roles and responsibilities, response plan includes ensuring full understandingof level. corporate rehearsed 11timesat The contingency CONTINGENCY PLAN andresponsemeasures. crisismanagement together withthepreparednessfor health, areas. andthecommunityinaffected theeconomy onspillpreventionThaioil Groupfocuses animpactonlivingorganism, willhave quantity ofoilandchemicalspillsorcontinuousleakages human ofthepetroleumindustry. factorstothesustainability Oil andchemicalspillsarematerial largeAny which affectstheenvironment cases fromtheprocess Oil andchemicalspills 0 Thaioil’s ofoilspillpreparedness. management toaudit specialists (OilSpillResponseLimited)fromSingapore Invite oilspillmanagement 2014 PLAN the contingencyplanwas year.every In the past year, oil spill contingency plan comprehensive testof Thaioil Grouphasafulland
SPILLS ATSEA. STANDARDS AND OPERATE SAFELY WITHOUT OILORCHEMICAL PORT ORBUOY MOORINGFACILITY MEETINTERNATIONAL BERTHING ATENSURES THATSHIPS GROUP THAIOIL’S ALL THAIOIL
OIL ORCHEMICALSPILLRESPONSE within 10hoursafterreceiving theincidentreport. locationcan senditsspecialiststo the affected example,spill crisis;for incaseofoilspill, OSRL onoilassistance withandmakerecommendations Limited (OSRL)fromSingapore, whocanprovide with specialistse.g.relationships OilSpillResponse In addition, goodThaioil Grouphasestablished level. corporate at such as preventive action and oil spill removal plan
a setofresponsemeasures Thaioil Grouphasdeveloped manner,response inatimely of oilandchemicalspill To ensurethe efficiency
environment. on thepreventionofoilandchemicalspillsreleasedto standardsand continuously inaccordance withinternational efficiently wecanachieveourobjectivesandstrategies that has beenverifiedbyathirdparty. Remainingincident-free indicates mooringfacility. ourportandbuoy spill incidentsat This information “ Auditor. thePTTGroupSecurity,made by Safety, HealthandEnvironment(SSHE) continuously. health,The occupational safetyandenvironmentinspectionis andresponsibilities ofemergencydutypersonnelarereviewedregularly Emergency andCrisisManagement: QMOS-SSM-01. The rolesand Thaioil GroupreviewsandrevisesitsEmergencyManual: QMOS-SSM-01tocover oilspillprevention,In ordertoensureefficient leastonceperyear, at OF SAFETYPROCESS REVIEWMONITORING AND From 2008to2013, Thaioil Grouphasnooiland chemical ”
to all employees concerned on a regular basis. These and measures informedare updated andoilspills.and responsetoterroristattacks from shipcollisionsandduringoilpumping, accident prevention, accidentprevention prevention duringoilpumping, operational risk assessment, accident engineering prevention measures. The measuresinclude has developedasetofmaritimedisaster ship loadingoperations, Thaioil Group seaduringIn ordertopreventoilspillsat COMPANY LIMITED OF THAI OILPUBLIC PREVENTION MEASURES MARITIME DISASTER
74 WATER MANAGEMENT THAIOIL GROUP EMPHASIZES THE IMPORTANCE OF EFFECTIVE WATER RISK MANAGEMENT REPORT ON WATER CONSUMPTION WATER MANAGEMENT AT ALL TIMES SO THAT THE PRODUCTION AND WATER QUALITY ppm PROCESS CAN RUN CONSTANTLY WITH NO ADVERSE EFFECT ~ Thaioil Group considers water risk management as a corporate The COD level in our wastewater ON THE ENVIRONMENT OR ANY STAKEHOLDERS. THAIOIL GROUP risk. The water crisis management and emergency response is less60 than the level prescribed ENSURES THAT ALL WATER DISCHARGED BACK INTO THE procedures was developed to cope with water supply shortage. SUSTAINABILITY REPORT 2013 REPORT SUSTAINABILITY by the Ministry of Industry ENVIRONMENT MEETS THE LEVEL PRESCRIBED BY LAW. In addition, Thaioil Group has conducted water sufficiency
2014 PLAN assessments for 1 year, 3 years, 5 years and 10 years by both internal functions and an independent third party company. To study the use of treated wastewater for tank calibration. Thaioil Group submits a report on water consumption to management level every month in the area production unit To study the use of treated wastewater for watering trees outside the refinery. 3Rs STRATEGY meeting. Water consumption quantity is monitored daily, while the water level of reservoirs is tracked every working day. THE LIFE-CYCLE OF WATER MANAGEMENT In addition, the quality of treated wastewater is inspected weekly Thaioil Group has successfully by an internal function and monthly by a third party company. implemented the 3Rs (Reduce, The Chemical Oxygen Demand (COD) level in wastewater is Reuse, Recycle) strategy to monitored 24 hours, and then it is reported directly to the reduce water consumption. Department of Industrial Work. In 2013, the average COD level Consequently, in 2013, around was 60 ppm, which is half the level of 120 ppm recommended 3.9% of water withdrawn from
WATER MANAGEMENT WATER by the Ministry of Industry. natural sources was minimized. Inaddition, a water reuse The volume of effluent discharged into the sea was 2.43 million project : Reverse Osmosis cubic meters per year. We contract a third party company Thaioil Group implements water management throughout the life-cycle. All strategic plans, systems and (RO) is on approval process. licensed by the public office to monitor environmental and projects are reviewed regularly to ensure the most efficient water usage. Thaioil Group has also implemented surface water quality in neighboring areas, as well as plankton strategies to prevent the risk of water supply shortages for our production processes. levels in the sea. The results are then reported to the Office of Natural Resources and Environmental Policy and Planning. The Raw water consumed in utility systems, production processes, and WATER CONSUMPTION STATISTICS 2010–2013 findings show that the surface water quality meets the level WATER SUPPLY other activities of Thaioil Group are supplied from 3 sources. prescribed by law with no significant environmental impact.
E R 1.) Bang-pra Reservoir The Royal 2.) Nong-kor Reservoir is under 3.) Seawater Thaioil Group has 6 C E U U
14.22 In addition to the water management inside the company, D S 13.91 Irrigation Department grants us the management of the Eastern desalination units at the refinery E E
R Thaioil Group cooperates with third parties in both the private permission to use water from the Water Resources Development in Sri Racha, Chonburi. The treated 11.26 9.16 and public sectors, including local communities, the Royal Bangpra Reservoir. The capacity and Management Public Co., Ltd. water is supplied to boilers (Boiler Irrigation Department for the 9th District, the Eastern Provincial of this reservoir is 117.4 million The capacity of the reservoir is Feed Water) for producing steam. 0.80 0.67 0.66 Waterworks Authority and other companies in the PTT Group cubic meters. The raw water 0.63 21.0 million cubic meters. The raw In 2013, the water volume obtained to develop an effective water consumption plan that ensures consumed from this source by 2010 2011 2012 2013 water consumed from this source from the desalination system other parties are not affected by our operations. As part of THAI OIL PUBLIC COMPANY LIMITED THAI OIL PUBLIC COMPANY Thaioil Group accounts for 1.4% by Thaioil Group accounts for achieved 10,000 cubic meters per Total water consumption (million cubic meters) this commitment, all our present and future water consumption of total water consumption. 7.1% of total water consumption. day. Volume per unit of production (cubic meters per ton of throughput) needs are estimated and the optimum water supply volume is allocated to each parties. These three water supply sources are managed by third parties such as the Royal Irrigation Department and other water management companies. Therefore, Thaioil Group's water consumption from these sources does not affect other water consumers and the neighboring environment. 76 THAI OIL PUBLIC COMPANY LIMITED PERFORMANCE SUMMARY SUSTAINABILITY REPORT 2013 Remarks: Remarks: PERFORMANCE SUMMARY Number of employees who have completedcodeofconducttraining Number ofemployeeswhohave Code ofconductviolation Code ofConduct Market capitalization Return onassets Return onequity Earnings pershare Shareholders’ equity-net Payment to providers of capital toprovidersofcapital Payment Total liabilities Employee wages andbenefits Employee wages Total assets Operating cost Operating Net profit Total revenues Generated Economic Value Total processsafetycaseinlevel1and2 Total mechanism grievance codeofconductthroughformal about numberofgrievance Grievance aboutCodeofConduct EBITDA Total (Employee) injuriesrate recordable Lost time injury frequency rate (Employee) frequencyrate Lost timeinjury Total injuriescase(Contractor) recordable Lost time injury frequency rate (Contractor) frequencyrate Lost timeinjury Total injuriescase(Employee) recordable (Employee) Absentee rate Near miss SAFETY PERFORMANCE Occupational HealthandSafety Occupational ECONOMIC PERFORMANCE Occupational illness frequency rate (Employee&Contractor) illnessfrequency rate Occupational case(Employee) Lost workday Total (Contractor) injuriesrate recordable Fatality (Employee&Contractor) Fatality case(Contractor) Lost workday
(3) (2) (4) (1) (2) (1)
Thaioil Groupreportedprocesssafetyinaccordance with API RP754standard. socialresponsibilityof safetyandhealthreportsarebrokendowntoemployeescontractorsinorderillustrate Occupational contractors.Thaioil Grouptooperational TRIC and thefirst-aid level. at doesnotincludeaccidents categorized TRIR data SafetyandHealth reportingofPTTGroupinaccordance withOccupational standardstatistical Thaioil Groupfollows (OSHA) Administration Thaioil GrouphasstartedtocollecttraininghoursofE-learningprogram. In2011, arereviewedtrainingcontentsin2014. codeofconducttopicscovershumanrightsandanti-corruption that incudesdividendandinterest. toprovidersofcapital Payment (3) (1) (1) (2) (2) (2) (3) (2) (3) (3)
(4) Case/Million manhour Case/Million manhour Case/Million manhour Case/Million manhour Case/Million manhour (2) Day/Million manhour Day/Million Person UNIT Case Case Case Case Case Case Million THB Million THB Million THB Million THB Million THB Million THB Million THB Million THB Million THB Million THB THB/Share UNIT Case Case % % % 159,632 147,148 307,710 324,352 75,570 71,578 17,381 12.20 2,573 8,956 6,146 2010 2,118 6.30 4.39 2010 0.89 0.00 0.61 0.55 0 0 - 0 4 0 0 1 0 0 0 119,342 154,568 422,360 448,773 85,034 69,534 14,853 28,760 18.50 3,407 7,809 2011 1,420 9.80 7.28 2011 0.71 0.14 0.69 0.00 90 0 0 0 5 0 1 0 0 0 0 137,702 170,676 432,312 451,659 90,724 79,952 12,320 20,350 14.00 2,796 7,603 2012 2,438 7.60 6.04 2012 1.31 0.12 0.86 0.60 92 0 0 0 7 0 1 1 0 0 0 114,752 113,681 208,519 397,556 418,514 94,838 10,394 22,361 11.20 2,841 9,337 2013 1,722 5.50 5.09 2013 1.09 0.08 0.39 90 0 0 0 5 0 1 0 0 0 0 0 Remarks: Average traininghours Average • Employeereturnedtoworkafterparentalleave • Employeetakenparentalleave Total turnover turnover Employee • Coverage Total newhirerate • Employeeentitledtoparentalleave Parental leave • Over50yearsold Voluntary resignation • 30-50yearsold Turnover rate • Below30yearsold Number of grievance about humanresources about Number ofgrievance Grievances abouthumanresources • Over50yearsold Total numberofnewemployeeshired hired New employee Number of grievance addressed • Numberofgrievance • Gender Diversity • Number of grievance resolved • Numberofgrievance • • • 30-50yearsold • • Others Total numberofemployee Employee non-management employee non-management • Average allemployees traininghoursfor • Below30yearsold • Bangkok • Male PEOPLE PERFORMANCE • Female • Chonburi byregion Number ofemployee Total numberofexecutives Average executives hoursoftrainingfor Total employee numberofnon-management Total numberofmanagement Average management hoursoftrainingfor Average hoursoftrainingfor
(3) (2) (1)
Management includesvicepresident,Management divisionmanager, andsectionmanager. Executives includeCEO, president, executivevicepresident, andassistant executivevicepresident. theorganization. providedby leave exclude paideducational Data (1) (2) (3) (2) (3) % oftotalemployee % oftotalemployee % oftotalemployee Hour/Person/Year Hour/Person/Year Hour/Person/Year Hour/Person/Year Person Person Person Person Person Person Person Person Person Person Person Person Person Person Person Person Person Person Person Person Person UNIT Case Case Case 61.58 Male 0.80 0.57 537 787 125 123 110 14 14 75 10 16 1,089 2010 5 0 0 7 1 7 1 3 - - - - 872 217 0 0 0 Female 6.45 4.15 100 217 186 12 14 91 91 30 98 6 6 9 0 2 0 3 1 6 0 - - - - 60.85 14.98 13.33 Male 113 516 127 760 107 20 20 90 30 91 80 82 82 15 53 1,089 2011 7 7 6 - - - - 10 10 10 848 241 Female 99.17 24.48 16.60 239 203 40 36 22 59 33 76 79 37 92 21 4 4 1 2 1 5 - - - - 58.53 Male 6.67 0.34 518 793 17 17 10 49 59 95 95 87 96 71 1,158 2012 3 0 0 2 5 1 - - - - 885 273 1 1 1 Female 15.38 2.56 100 273 235 106 35 42 74 79 38 3 3 7 0 7 0 2 0 5 0 - - - - 54.14 Male 9.11 2.51 517 858 917 19 19 24 11 82 12 87 92 92 90 97 15 36 1,282 2013 0 5 3 2 7 9 955 327 3 3 3 Female 19.57 3.98 100 327 279 130 124 115 211 13 13 10 54 64 48 94 6 6 0 1 8 1 0 4 0 78 THAI OIL PUBLIC COMPANY LIMITED PERFORMANCE SUMMARY SUSTAINABILITY REPORT 2013 Remarks: Total gas directandindirectgreenhouse Refinery energy intensity energy Refinery Electricity purchased • Ethanol • Gasoline • Diesel • LPG • Coke Particular matter (PM)emission • Particularmatter • Fuelgas Air • • Fueloil Refinery greenhouse gasintensity greenhouse Refinery • Sulfuroxide(SOx)emission • Throughput Refinery Energy Management andGreenhouseGas Management Energy • Nitrogenoxide(NOx)emission Total consumption energy throughput Refinery ENVIRONMENTAL PERFORMANCE Local purchases and services inthearea Local purchasesandservices Supply ChainManagement New suppliers that were screened using criteria for labors andsafety labors werescreenedusingcriteriafor New suppliersthat Customer satisfaction Products andServices Total societyandcommunitydevelopment investmentfor Society andcommunitydevelopment SOCIAL PERFORMANCE Natural gas Natural Volatile organiccompound(VOC)emission (4)
(3) (2) (1)
"in thearea"meansdomesticsince breakdowneconomics,Thailand doesnotclearly politicsorpeople. In 2013, 87%. compliedthetargetat performance coveredallcustomerseachyear. ofCustomersatisfaction Boundary In 2012and2013, budgetswerehighduetosocialassistancefor hospital. andsupportingtheconstructionofLaem-chabang Thailand flood (1) (2) (3) (3) (2) (1) Thousand Ton Thousand Ton Thousand Ton Thousand Ton Million THB Million THB Million Ton Mega Watt Metric Ton Million GJ Million GJ Million GJ Million GJ Million GJ Million GJ Million GJ Million GJ Million GJ Ton /Ton GJ /Ton UNIT UNIT % % 13,589,950 2010 2,381 23.76 29.11 58.66 2010 2.46 0.01 0.01 0.79 4.24 4.97 0.28 6.27 3.31 2.87 87 47 - - - - - 14,737,892 2011 2,381 17.50 60.62 85.90 2011 2.15 0.01 0.01 0.79 3.99 6.98 0.33 8.35 4.54 3.02 90 93 - - - - -
14,575,951 2012 19.86 65.42 89.89 2012 2.14 0.02 0.00 0.69 6.59 3.91 0.35 4.74 4.73 2.66 93 72 859 - - - - - less than0.01 less than0.01 14,455,228 13,470 54.30 2013 2013 18.28 10.66 35.14 2.43 0.02 0.00 0.83 6.87 1.10 5.35 0.17 5.41 2.43 3.93 89 47 212 Remarks: • Numberofnon-compliancewithenvironmentallaws non-compliance withenvironmentallaws • Finesfor Legal Compliance Significant oilandchemicalspill Oil andChemicalSpill • Recovery • Recycle • Landfills Total non-hazardouswastedisposal • Others • Recovery • Recycle • Landfills Total hazardouswastedisposal Waste Disposalby Type Total suspendedsolids Total oilandgrease Chemical OxygenDemand(COD) Biochemical OxygenDemand(BOD) • • RecycledWater consumption • Seawater supply • Industrialwater • Water ENVIRONMENTAL PERFORMANCE • Others Wastewater releasedtoenvironment Total consumption water
(5) (4) (3) (2) (1) (5)
Data exclude portable water consumption which has very small volume compared to water consumptioninproductionprocess. smallvolumecomparedtowater consumptionwhichhasvery water excludeportable Data Thaioil GroupdonotpurchasedozonedepletingsubstancesincludingCFCs, HCFCs, halons, andmethylbromide. reportingofPTTGroupinaccordancewith standardstatistical Thaioil Groupfollows WBCSD GHGProtocol gasemissionweresignificantreducedsinceIndependentPower(Thailand)Co., consumptionandgreenhouse The energy from Ltdwasseparated Thaioil Group. “Refinery Throughput” meanscrudeandotherfeedstocks Million M3/Ton Million THB Million Ton Million Ton Million M3 Million M3 Million M3 Million M3 Million M3 UNIT Case Case Ton Ton Ton Ton Ton Ton Ton Ton Ton Ton Ton Ton 150.75 1,196 79.63 2,698 3,633 48.90 33.30 11.26 2010 4.46 4.26 0.66 6.27 0.37 4.99 340 641 199 855 256 17 0 0 0 136.32 1,014 4,569 5,327 41.04 33.00 14.22 2011 3.07 4.09 0.70 6.13 0.55 8.09 480 101 420 758 256 13 0 0 0 0 136.91 4,135 5,363 37.93 35.00 13.91 2012 3.93 4.04 0.65 5.87 0.55 8.04 345 327 279 972 319 909 149 22 0 0 0 121.08 1,449 4,967 5,554 33.36 25.97 2013 3.75 2.43 0.65 6.02 0.22 3.14 9.16 613 715 557 34 87 31 0 0 0 0 80 THAI OIL PUBLIC COMPANY LIMITED AWARDS AND RECOGNITIONS SUSTAINABILITY REPORT 2013 RECOGNITIONS AWARDS AND ▪ ▪ INTERNATIONAL LEVEL ▪ ▪ By: The fromHongKongAssets magazine Member of Dow Jones Sustainability IndicesasaMember ofDowJonesSustainability By: SouthEast IR Magazine Asia Awards &Conference inSectorEnergy- The BestInvestorRelations 2013 at Singapore 2013 at East Asia South By: (GRI)organizationThe GlobalReportingInitiative By: JonesSustainabilityIndices(DJSI) Dow producer industry organiza global sustainable Governance 2013 at Goldlevel Governance 2013at (GRI) version3.1 report inaccordancewithGlobalReportingInitiative Level disclosureinthesustainabilityA ofinformation The andCorporateAssets ExcellenceinManagement tion inoilandgas
▪ ▪ ▪ ▪ Thai Oil Public Company Thai LimitedcompanyOil is Public the Company only Thai Oil Public Company Thai Limitedwas Oil ranked Public 38 Company The BestCSRfrom Asian ExcellenceRecognition Governance Corporate ofthe Secretary Asian Company Year 2013 Award in By: Platts: Top Rankings Company 250GlobalEnergy in Asia and136 By: Governance Corporate Asia Magazine Awards 2013 - - - consecutive years, Awards 2 levels for and national in both regional toreceivethe of theregion Alpha Southeast Asia 2013 By: Alpha Southeast Asia magazine
The BestStrateg The Strongest Adherence Southeast Asia Energ The StrongestCommitmenttoSustainable th intheworld ic CSR to Corporate Governance to Corporate
y in th
BusinessMembershipin Associations forSustainableDevelopment NATIONAL LEVEL ▪ ▪ ▪ CSR Club-ThaiListedCompanies Association Foundation Thai EnvironmentalCorporation Development (TBCSD) SustainableThailand BusinessCouncilfor Petroleum Instituteof Thailand ASSOCIATIONS Sustainability Report Sustainability Award excellenceindisclosingESG for The 6 2013 Zero AccidentAwards By: Thai ListedCompanies Association report sustainability (Environment, Efficiency, ofEnergy Ministry By: Departmentof Developmentand Energy Alternative MakNoiIsland,project at PhangNga system in the biogas to off-grid unrelated and recycled energy By: ofLabour Ministry th
Thailand Energy Thailand Energy Awards energy2013 in renewable Social and Governance) information in theSocial and Governance) information
▪ ▪ ▪ ▪ ▪ ▪ CSR-DIW Continuous Award CSR-DIW CSR-DIW Chain)Advance 5(CSR-DIWinSupply Social Responsibility,CSR-DIW (Corporate Department of CSRI Recognition Award 2013 SocialResponsibility Best Corporate Awards SET Awards 2013-Top GovernanceReport Corporate Awards Department ofIndustrial W By: PromotionandDevelopmentOffice,Green Industry Industrial Works) By: Stock Exchangeof Thailand 2013 ork YEAR OFMEMBERSHIP 2012 2009 2006 2006
82
LRQA Assurance Statement • Visiting the facility at Chonburi to sample evidence for the selected environmental and social indicators to Relating to Thai Oil Public Company Limited’s environmental and social confirm its reliability. Note: LRQA did not verify the data back to its original sources, nor did it assess the accuracy and completeness of the data indicators within the Sustainability Report for the calendar year 2013 reported by individual locations. Observations This Assurance Statement has been prepared for Thai Oil Public Company Limited in accordance with our Further observations and findings, made during the assurance engagement, are: contract but is intended for the readers of this Report. • Stakeholder Inclusivity: We are not aware of any key stakeholder groups that have been excluded from TOP’s stakeholder Terms of Engagement engagement process. TOP has stakeholder engagement processes which collect the views and expectations Lloyd’s Register Quality Assurance Ltd. (LRQA) was commissioned by Thai Oil Public Company Limited (TOP) to of stakeholders. Stakeholders’ concerns are then considered by TOP when setting their sustainability provide independent assurance on the environmental and social indicators within its Sustainability Report 2013 strategies and roadmap. (“the Report”) to a limited level of assurance using LRQA’s verification procedure. LRQA’s verification procedure is • Materiality: SUSTAINABILITY REPORT 2013 REPORT SUSTAINABILITY based on current best practice and uses the principles of AA1000AS (2008) - Inclusivity, Materiality, TOP has processes in place for identifying and evaluating their material issues which are determined by a set Responsiveness and Reliability of performance data and processes defined in ISAE3000. of risk criteria. We are not aware of any material issues concerning TOP’s environmental and social performance that have been excluded from the Report. However, we believe that future Reports should Our assurance engagement covered TOP’s operation and activities in Chonburi, Thailand, including four disclose detailed accounts of TOP’s management approach to addressing material issues, particularly on subsidiary companies and specifically the following requirements: climate change. This account should also disclose the challenges and progress made in performance. • Evaluating the reliability of data and information for the selected environmental and social indicators: EN3, • Responsiveness: EN8, EN 15, EN 23, EN 24, LA6 and LA9 Although TOP has processes and communication channels in place to respond to stakeholders, we believe • Reviewing whether the selected environmental and social indicators within the Report have taken account of: that future Reports should explain in detail how TOP engages with its different stakeholders groups; for - GRI G4’s Sustainability Reporting Guidelines, and example - employees, local communities, subcontractors’ families, customers and suppliers. This detail - GRI G4’s Oil and Gas Sector Disclosures. should also explain how each stakeholder group relates to TOP’s sustainability strategies. • Reliability: Our assurance engagement excluded TOP’s operations and activities outside Chonburi, Thailand and the data Although TOP has data management systems, implementation of these systems is variable across facilities. and information of its suppliers, contractors and any third-parties mentioned in the Report. TOP should consider establishing comprehensive reporting procedures for data collection, quality assurance, control and security processes at each facility. LRQA’s responsibility is only to TOP. LRQA disclaims any liability or responsibility to others as explained in the end footnote. TOP’s responsibility is for collecting, aggregating, analysing and presenting all the data and LRQA’s competence and independence information within the Report and for maintaining effective internal controls over the systems from which the LRQA ensures the selection of appropriately qualified individuals based on their qualifications, training and Report is derived. Ultimately, the Report has been approved by, and remains the responsibility of TOP. experience. The outcome of all verification and certification assessments is then internally reviewed by senior management to ensure that the approach applied is rigorous and transparent. LRQA’s Opinion Based on LRQA’s approach nothing has come to our attention that would cause us to believe that TOP has not: This verification is the only work undertaken by LRQA for TOP and as such does not compromise our • Met the requirements above independence or impartiality.
STATEMENT OF EXTERNAL ASSURANCE OF EXTERNAL STATEMENT • Disclosed reliable performance data and information for the selected environmental and social indicators • Covered all the environmental and social issues that are important to the stakeholders and readers of this Signed: Dated: 22 February 2014 Report. The opinion expressed is formed on the basis of a limited level of assurance and at the materiality of the professional judgement of the Verifier. Note: The extent of evidence-gathering for a limited assurance engagement is less than for a reasonable assurance engagement. Nit Tanasuthiseri Limited assurance engagements focus on aggregated data rather than physically checking source data at sites. LRQA Lead Verifier On behalf of Lloyd’s Register Quality Assurance LRQA’s Approach Lloyd’s Register International (Thailand) Limited LRQA’s assurance engagements are carried out in accordance with LRQA’s verification procedure. The following 14th Floor, Sirinrat Building, 3388/46 Rama IV Road tasks though were undertaken as part of the evidence gathering process for this assurance engagement: Klongton, Klongtoey, Bangkok 10110 THAILAND • Assessing TOP’s approach to stakeholder engagement to confirm that issues raised by stakeholders were captured correctly. We did this by reviewing documents and associated records. LRQA Reference: BGK6019268 • Reviewing TOP’s process for identifying and determining material issues to confirm that the right issues were included in their Report. We did this by benchmarking reports written by TOP and its peers to ensure that Lloyd's Register Group Limited, its affiliates and subsidiaries, including Lloyd’s Register Quality Assurance Limited (LRQA), and their sector specific issues were included for comparability. respective officers, employees or agents are, individually and collectively, referred to in this clause as 'Lloyd's Register'. Lloyd's Register • Auditing TOP’s data management systems to confirm that there were no significant errors, omissions or mis- assumes no responsibility and shall not be liable to any person for any loss, damage or expense caused by reliance on the information or advice in this document or howsoever provided, unless that person has signed a contract with the relevant Lloyd's Register entity for statements in the Report. We did this by reviewing the effectiveness of data handling procedures, instructions the provision of this information or advice and in that case any responsibility or liability is exclusively on the terms and conditions set out and systems, including those for internal verification. We also spoke with those key people responsible for in that contract. THAI OIL PUBLIC COMPANY LIMITED THAI OIL PUBLIC COMPANY compiling the data and drafting the Report. The English version of this Assurance Statement is the only valid version. Lloyd’s Register Group Limited assumes no responsibility for versions translated into other languages.
This Assurance Statement is only valid when published with the Report to which it refers. It may only be reproduced in its entirety.
Copyright © Lloyd's Register Quality Assurance Limited, 2014. A member of the Lloyd’s Register Group. This document is subject to the provision on page 2.
84 THAI OIL PUBLIC COMPANY LIMITED GRI CONTENT INDEX & UNGC PRINCIPLES COP SUSTAINABILITY REPORT 2013 & UNGCPRINCIPLESCOP GRI CONTENTINDEX G4-58 G4-57 G4-56 INTEGRITY ETHICS AND G4-55 G4-54 G4-53 G4-52 G4-51 G4-50 G4-49 G4-48 G4-47 G4-46 G4-45 G4-44 G4-43 G4-42 G4-41 G4-40 G4-39 G4-38 G4-37 G4-36 G4-35 G4-34 GOVERNANCE G4-33 G4-32 G4-31 G4-30 G4-29 G4-28 REPORT PROFILE G4-27 G4-26 G4-25 G4-24 STAKEHOLDER ENGAGEMENT G4-23 G4-22 G4-21 G4-20 G4-19 G4-18 G4-17 MATERIALBOUNDARIES IDENTIFIED ASPECTSAND G4-16 G4-15 G4-14 G4-13 G4-12 G4-11 G4-10 G4-9 G4-8 G4-7 G4-6 G4-5 G4-4 G4-3 ORGANIZATIONAL PROFILE G4-2 G4-1 STRATEGY ANDANALYSIS Disclosures Standard General GENERAL STANDARD DISCLOSURES
(or Link) Page Number 28-29 28-29 25, Annual Report98, 99 25 25 Annual Report118-120 Annual Report118-120 Annual Report118-120 24 24 8-9 13-14 13-14 13-14 24 23, Annual Report 120 12, 23 25, Annual Report 106, 109 22, Annual Report 104 Annual Report87 Director’s CV62-71, 24 Remuneration 17 12-13 14-15 12, Annual Report 72, 73 9, 82-83 8, GRIContentIndex: 84-88 9 8, 9 8, 9 8, 9 8, 17 16, 17 16 17 9 8, 9 8, 19 19 18-19 18-19 9 8, 4, 24, 25, 61, 66, 80-81 23-24 10, 11, 58-59 10, 11, 58-59 34 76 10, 76, Annual Report2, 3 11 4 11 4 11 4 10-11, 16-17 6-7 Not applicable Omission(s) Identified for Omission(s) Reason(s) Not applicable for Omission(s) Explanation Not applicable Assurance External ------G4-EN21 G4-EN20 G4-EN19 G4-EN18 G4-EN17 G4-EN16 G4-EN2 G4-EN1 G4-DMA MATERIAL ASPECT:MATERIALS CATEGORY: ENVIRONMENTAL G4-EC8 G4-EC7 G4-DMA MATERIAL ASPECT: INDIRECTECONOMICIMPACTS G4-EC4 G4-EC3 G4-EC2 G4-EC1 G4-DMA MATERIAL ASPECT: ECONOMICPERFORMANCE Indicators DMA and SPECIFIC STANDARD DISCLOSURES G4-EN5 G4-EN4 G4-EN3 G4-DMA MATERIAL ASPECT:ENERGY G4-EN15 G4-DMA MATERIAL ASPECT:EMISSIONS G4-EN10 G4-EN9 G4-EN8 G4-DMA MATERIAL ASPECT: WATER G4-OG3 G4-OG2 G4-EN7 G4-EN6 CATEGORY: ECONOMIC OGSS OGSS OGSS OGSS OGSS OGSS OGSS OGSS OGSS OGSS OGSS OGSS OGSS OGSS OGSS OGSS
(or Link) Page Number 71 79 67-68 70 71 63 71 70-71 45, 48, 63 45, 78 44, 48, 63 Annual Report250-251 Annual Report206-207 70 76, 78, Annual Report157-158 23-24 78 63, 78 78 70-71 71, 78 66, 70 79 74-75 63 63 63 71 74 79 Omission(s) Identified compounds (VOC) organicQuantity ofvolatile input materials arerecycledused that ofmaterialsPercentage
unavailable. iscurrentlyThe information Omission(s) Reason(s) for Disclosure isnotapplicable or partoftheStandard The StandardDisclosure
be available in2015. be available system. willThe information andmonitoringmanagement process toimprove VOC Thaioil Groupisinthe compared toouroverall islowthe percentage recycled intotheprocess, Although usedoilis petrochemical industry. business isshiftingmoreon ifourwe willreportthisdata petroleum refining. However, business iscurrently throughput asourcore Omission(s) forExplanation
gas emissionsp.82-83 Total directgreenhouse Total consumptionp.82-83 energy by sourcesp.82-83 by Total withdrawal water Assurance External ------86 THAI OIL PUBLIC COMPANY LIMITED GRI CONTENT INDEX & UNGC PRINCIPLES COP SUSTAINABILITY REPORT 2013 G4-EN23 G4-EN22 G4-DMA MATERIAL ASPECT:EFFLUENTS ANDWASTE Indicators DMA and G4-EN28 G4-EN27 G4-DMA MATERIAL ASPECT:SERVICES PRODUCTS AND G4-OG7 G4-OG6 G4-OG5 G4-EN26 G4-EN25 G4-EN24 G4-EN34 G4-DMA MATERIAL ASPECT: ENVIRONMENTAL GRIEVANCE MECHANISMS G4-EN33 G4-EN32 G4-DMA MATERIAL ASPECT:ENVIRONMENTALSUPPLIER ASSESSMENT G4-EN30 G4-DMA MATERIAL ASPECT: TRANSPORT G4-EN29 G4-DMA MATERIAL ASPECT:COMPLIANCE G4-OG8 OGSS OGSS OGSS OGSS
(or Link) Page Number 69, 79 68, 74-75, 79 66 63 63 78 75 72,79 50 50 61-62 61-62 61-62 59-60 59-60 23, 79 66 63 non-routine waste routine wastefrom ofSegregation Omission(s) Identified produced water orformation disposal of categories are reclaimedby thatmaterials their packaging products soldand ofPercentage disposal and treatment for and strategies drilling waste Amount of Volume and internationally waste shipped ofPercentage
Omission(s) Reason(s) for unavailable is currently The information applicable Disclosure isnot of theStandard Disclosure orpart The Standard applicable Disclosure isnot of theStandard Disclosure orpart The Standard applicable Disclosure isnot of theStandard Disclosure orpart The Standard unavailable is currently The information
Omission(s) forExplanation in 2015. will beavailable The information system.management to improvewaste in theprocess Thaioil Groupis company and production non-exploration toNot applicable company and production non-exploration toNot applicable in2015. available infroamtion willbe system. The management improve waste in theprocessto Thaioil Groupis context of Thaioil. context inthethis data totrackmaterial Therefore, itisnot in bulkcontainer. tankers orcomes into custiomers’ which feedsdirectly and lubebaseoil refined petroleum products are Our primary
Assurance External p.82-83 generated Total waste spills p.82-83 Oil andchemical ------
G4-OG11 G4-OG10 G4-SO2 G4-SO1 G4-DMA MATERIAL ASPECT: LOCAL COMMUNITIES SUB-CATEGORY: SOCIETY G4-HR12 G4-DMA MATERIAL ASPECT: HUMAN RIGHTSGRIEVANCE MECHANISMS G4-HR11 G4-HR10 G4-DMA MATERIAL ASPECT: SUPPLIER HUMANRIGHTS ASSESSMENT G4-HR9 G4-DMA MATERIAL ASPECT: ASSESSMENT SUB-CATEGORY: HUMANRIGHTS G4-LA6 G4-LA5 G4-DMA MATERIAL ASPECT: OCCUPATIONAL HEALTH AND SAFETY G4-LA3 G4-LA2 G4-LA1 G4-DMA MATERIAL ASPECT:EMPLOYMENT DMA and G4-LA9 G4-DMA MATERIAL ASPECT:EDUCATION TRAININGAND G4-LA8 Indicators G4-LA16 G4-DMA MATERIAL ASPECT: LABORPRACTICESGRIEVANCE MECHANISMS G4-LA15 G4-LA14 G4-DMA MATERIAL ASPECT: SUPPLIER ASSESSMENT FORLABORPRACTICES G4-LA11 G4-LA10 G4-LA7 SUB-CATEGORY: LABORPRACTICES AND DECENT WORK CATEGORY: SOCIAL OGSS OGSS OGSS OGSS OGSS OGSS
(or Link) Page Number 46, 52 None 52 52 46, 48, 52 46, 50 46, 50 61-62 61-62 61-62 52 52 34, 36 36-37 77 33-34 77 30-31 76 32, 77 31-33 34, 37 34, 77 34 61-62 61-62 61-62 30 31-33 Omission(s) Identified related totheiroccupation related or highriskdiseasese Workers withhighincidence Disclosure isnotapplicable or partoftheStandard The StandardDisclosure Omission(s) Reason(s) for
occupational disease.occupational higher risktoincidenceor possesswhich occupation disease whichdonotindicate incidence andoccupational lowThaioil hasvery Omission(s) forExplanation
Employee LTIFR p.82-83 Contractors LTIFR, employee categories p.82-83 employee categories per employeeandby Average houroftraining Assurance External ------
88 THA I OIL PUBLIC COMPANY LIMITED GR I CONT ENT INDEX & UNGC P RINCIPLE S COP SUSTAIN ABILITY REPORT 201 3 G4-OG13 G4-DMA MA G4-DMA MA G4-SO11 G4-DMA MA G4-SO10 G4-SO9 G4-DMA MA G4-PR8 G4-DMA MA SUB-CA MA G4-SO8 G4-DMA MA G4-SO6 G4-DMA MA G4-SO5 G4-SO4 MATERI Ind DMA and G4-OG14 G4-DMA G4-SO3 G4- Ant Env Labor Human Rights UNITED RIAL A TERIAL A TERIAL RIAL A TERIAL RIAL A TERIAL A TERIAL A TERIAL A TERIAL A TERIAL i-co A DMA iro ica nment AS AL tors rruption OGSS OGSS OGSS OGSS OGSS TEGOR N SPECT SPECT: SPECT: SPECT: SPECT: SPEC SPECT: SPECT: AT PECT: IONS T: S T: Y: PRODUCTRESPONS : EME G F C COM P A ANTI-CORR ( Pag 41 41 41 50 50 61-62 61-62 61-62 57 56-57 76 28-29 29 29 23 63 63 25-27 Pr Pr Pr Pr Pr Pr Pr Pr Pr Pr O SSE U UPPL U R or Li GLOBALC BLIC SSIL FU STOME VANCE M IEVANCE 0 inciple 10 inciple inciple inciple inciple inciple inciple inciple inciple inciple RGENCY PREP PLIANCE T umber e Number IER IER I P Y NTEGRITY nk) OLICY R PRIVACY ASS 7 7 3 1 8 8 2 2 9 9 4 4 5 5 EL SUBS 6 6 UPTION ECHANISMS FORIMP Businesses sho Businesses sho Businesses sho Businesses sho Under rec Businesses sho proc Enco The The The ESS PACT P OMPACT ognition eliminatio e eliminatio AREDNESS MENT AND PROCESSSAFETY laimed humanr ura TIT f take fective ge thedevelopmenta UTES initia FORIMPA IBILITY o e r f the a n ofallfo n ofdiscrimina bolition ofchildla uld wo uld suppor uld upho uld suppor uld ma tives topro RINCIP ight toco ights CTS ON ACT rk ke surethat rms ld thefre a LES S ONSOCIETY gainst cor t aprec t andre e g mote o SOCIETY llectiv tion inr f nd diff (UNGC) for bour edom ofassocia ced andcompulsor aut spe rea the e ba ruption inall i usion ofenvironmental l ionar espec ter ct theprotect y arenotcomplicitinhuma rgaining e nvironmenta y t of a pproa proce polic anti-cor and tra Co Om Identi ident signif to co fo o perce T ota pera employmentandocc elated r riskselated mmunica l numbe ission(s) tion andt ies and t ified rruptio tio icant risk ch toenvironment dures nta s ion of ining fied f ns asse y labour ruption orms, ge of l re inte on tion n and r and spo on on includingex t he y friendl ed ssed nsibility rna eff ly tionally e ective n O Reason(s unava is curre The inf unava is curre The inf r upa y technolog mis ights al challenges tion ila ila ortion and bribery sion(s) orma orma y ntly y ntly a ble ble buses ) for tion tion ies Om E Anti-co 2014 imple the policywillbe prog in polic Anti-co 2014 imple the policywillbe prog in polic lanation xplanation 2013 2013 ission(s) ram tosupport ram tosupport d y isissued d y isissued mente mente rrupt rrupt whichthe whichthe d in d in ion ion for Pa Pa 52-53, 61 52-53, Pa Pa Pa Pa Pa Pa Pa Pa : 24, 29 24, ge: : 66 ge: : 34 ge: : 66 ge: : 34 ge: : 61 ge: : 66 ge: 34 ge: : 34 ge: : 34 ge: Ass External -75 , -35, -75 -35 -62 -75 -35 -35 -35 urance -62 ------