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นวัตกรรม สร้างอนาคตสร้างอนาคต INNOVATIONINNOVATION CREATESCREATES THETHE NEXT NEXT Contents CorporateCorporate Sustainability Sustainability Report Report 2012 2012 PTT PublicPTT Public Company Company Limited Limited นวัตกรรมนวัตกรรม สร้างอนาคตสร้างอนาคต INNOVATIONINNOVATION CREATESCREATES THETHE NEXT NEXT Contents 002 President and CEO Statement 004 Our Business 016 Report Introduction 020 Sustainable Governance 046 Our Priorities • Supply Chain Management • Product Stewardship • Climate Change • People • Operational Excellence • Capital Project Management • Corporate Citizenship 111 Performance Summary 127 Awards and Recognition 129 GRI Content Index and UNGC Principles COP 135 Assurance Statement As the world faces greater challenges, yet with resource limitation, the promotion of energy efficiency, innovation creation, and technological breakthroughs are viable tools to keep our world in balance – meaning business growth hand in hand with better lives, economies, and surroundings. That is why PTT Group constantly seeks better solutions while pursuing ways to incorporate Thai wisdom with academia so as to create new knowledge. All these to drive Thailand for better and more secure tomorrow. 02 Corporate Sustainability Report 2012 PTT Public Company Limited Mr. Pailin Chuchottaworn President & CEO 03 Corporate Sustainability Report 2012 PTT Public Company Limited CEO Statement The energy business has become more challenging over years. Securing energy supply from increasing limited sources to meet demand for energy needed to support population and economic growth is more competitive than ever. In addition, climate change issues are becoming more severe. In response to these challenges, PTT has set a strategic vision to become a Technologically Advanced and Green National Oil Company (TAGNOC). It is a strategy to drive business through advancement in innovation and technology that are designed to minimize environmental impacts. TAGNOC represents PTT’s vision to strategically transform from a resource-based company into a knowledge-based company. To this end, PTT has crafted the Technology Roadmap to drive innovation and the Green Roadmap to guide the entire organization covering products, processes as well as public awareness. PTT has rolled out clear targets and developed work plan to reduce greenhouse gas emission and environmental impacts. Sustainability Management Framework is an integral part of our organization management. PTT is committed to operate with transparency and respect to the rule of law. PTT has joined the United Nations Global Compact (UNGC) initiated and urged companies within PTT Group to participate as well. UNGC membership demonstrates our commitment to apply international standard to promote human and labor rights and environmental protection as well as to defend against corruption. As the only Thai company that is a member of the World Economic Forum (WEF) in the industrial partner level, PTT played an important role in supporting the 21st WEF on East Asia which was held in Thailand. More than 600 government and business leaders participated in the forum. At the forum, PTT proposed energy principles for sustainable development including energy security, robust energy systems, social responsibility and knowledge dissemination. Working with the Ministry of Energy, PTT has set up the Energy Academy to promote in depth knowledge on energy issues to both public and private sector which is important for steering the country development in long term. PTT understands the importance of creating shared value between business and society, thus aims to develop the Rayong Science Academy (RASA) into a leading science educational institution as well as promoting the Rayong Institute of Science and Technology (RAIST) into a world-class research university. The goal of these efforts is to develop Thai students’ competency as well as expanding the country’s knowledge base in order to achieve sustainable development. Our efforts and commitments have successfully propelled PTT into the 95th ranked company of the Fortune Global 500. PTT has also been selected as a member of the Dow Jones Sustainability Index (DJSI 2012/2013), a result that was achieved ahead of our targeted date. I would like to take this opportunity to thank all who has helped and supported PTT on our path to become the Thai Premier Multinational Energy Company and promise that PTT remains resolute in our commitment to become a 100-year organization and a strong support for Thailand in the coming years. 04 Corporate Sustainability Report 2012 PTT Public Company Limited Our Business PTT Public Company Limited or PTT was incorporated on October 1, 2001 through the privatization of the Petroleum Authority of Thailand where the organization was transferred to the state-owned enterprise including business, rights, debts, obligations, assets and employees under the State-Owned Enterprise Capital Act, B.E 2542 (1999). The company was first registered with 20,000 million Baht initial capitals and was debuted in the Stock Exchange of Thailand (SET) on December 6, 2001. PTT’s major shareholder remains the Ministry of Finance while its status remains a state-owned enterprise under the Ministry of Energy’s supervision. The head office is situated at 555 Vibhavadi Rangsit Road, Chatuchak, Bangkok. As of December 31, 2012, PTT boasted a total of 4,227 employees including secondments, of whom 2,851 were male and the remaining 1,376 were female working in the operations worldwide. PTT is a national oil company whose business consists of, firstly, PTT-operated business; namely, (1) natural gas business which refers to procurement and distribution of natural gas, natural gas separation plants, natural gas pipeline system and natural gas for vehicles; (2) oil business including retailing, commercial marketing, procurement and distribution of petroleum, oil depot management and operation, foreign investment and investment in subsidiaries and joint-venture firms; and (3) international trading business which covers trading of crude oil and condensate, refined oil and petrochemical and overseas procurement and transportation; and, secondly, PTT-investment business through other companies within the group in (1) exploration and production business; (2) petrochemical business; (3) refinery business; and (4) foreign investment business. 05 Corporate Sustainability Report 2012 PTT Public Company Limited Lampang 19 Chiang Mai 13 Phrae 7 Udon Thani 8 Phitsanulok 8 Nakhon Sawan 11 Khon Kaen 33 Ubon Ratchathani 9 Ayutthaya 180 Saraburi 31 Pathum Thani 35 Kanchanaburi 23 Ratchaburi 22 Chon Buri 357 Rayong 553 Number of PTT’s employees by area in Thailand Bangkok 2,761 Samut Sakhon 8 Surat Thani 23 Total 4,202 Phuket 15 Nakhon Si Thammarat 50 Krabi 2 Songkhla 34 Number of PTT’s employees by area overseas Total 25 Dubai 2 Laos 1 Singapore 9 China 1 Vietnam 1 Philippines 6 Cambodia 3 Malaysia 2 06 Corporate Sustainability Report 2012 PTT Public Company Limited Business Principles Sustainable business PTT’s vision is to become a Thai Premier Multinational Energy Aspirations Company. The firm has dedicatedly committed to the stakeholders where priority is the interests of the public and the country. PTT aspires to become a BIG company with PTT’s duty is to establish energy security for the country through a variety of business units that are extremely exploring, producing, researching and distributing activities. competitive, to be a company with sustainable At the other front, PTT constantly encourages and reminds the public growth and investments throughout the LONG of their rights and duties to consume and conserve natural resources integrated value chain in order to create in a balancing manner for today’s wellbeing and tomorrow’s future. added values, and lastly to be a company By committing to the core value “SPIRIT”, the management, with STRONG and outstanding operations employees and companies within the PTT Group are bound to and financial performances. To fulfill PTT’s commitment in creating a common path and direction to reach aspiration, PTT has defined three goals of the common goal. success in which the progress is summarized as follows. PTT pursues the business on the basis of the sustainable growth strategy through balancing of High Performance Organization (HPO) which involves technology development, innovation and knowledge management in work process, production, sales of products and services. This is balanced with Corporate Governance (CG), PTT pursues this goal on the basis of the business Code of Conduct where action taken must be transparent, fair, trackable and compliant with all the laws and regulations. Lastly, the balance takes into account the responsibility to the environment community development through Care, Share and Respect (CSR), as well as creation shared vales (CSV). 07 Corporate Sustainability Report 2012 PTT Public Company Limited BIG Strategic Objectives Goal: To become one of the world’s top 100 companies with the highest revenue in Fortune’s Global 500 by 2020. PTT defines core strategic objectives in Today (2012): PTT is currently ranked No. 95 among the world’s order to support the 3 goals comprising: largest 500 companies (based on the 2011 performance), up from No. 128th in 2011, with sale revenues of 2,428,165 million Baht, • Cost-cutting and profit-enhancing or a jump by 529,483 million Baht or 27.9 percent from 2010. strategy which has been translated into Performance: Best-in Class; and Synergy: Deeper and Broader Collaboration. LONG Goal: To be listed in the Dow Jones Sustainability Indexes (DJSI) • Sustainable growth and
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