Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Climate Goals & Targets

Environmental Challenges

• Potential for oil spills from Montara operations

Mitigation Strategies

• Oil Pollution Emergency Plan (OPEP) to minimize the effects of marine oil spills

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: National Plan to Combat Pollution of the Sea by Oil and other Noxious and Hazardous Substances, Western Australian Department of Transport (WA DoT) WestPlan, NT Oil Spill Contingency Plan

Environmental Metrics

ESG Focus Areas

• Greenhouse Gas Reduction
• Circular Model for E&P
• Ocean for Life
• Governance, Risk Management and Compliance (GRC)
• Stakeholder Value Creation (SVC)
• High Performance Organization (HPO)

Environmental Achievements

• Greenhouse gas emissions intensity reduced by 14% compared to the 2012 base year (256,498 tonnes of CO2 equivalent reduction)
• Zero hazardous waste to landfill in offshore petroleum production fields in the Gulf of Thailand
• 77% of waste reused and recycled
• 12% of water reused and recycled

Social Achievements

• Implemented over 143 social development projects focusing on basic needs, education, environment, and culture
• Fishermen's income increased by THB 60,000 per household per year due to the Crab Hatchery Learning Center project
• H.T.M.S. Underwater Learning Site project generated over THB 59 million in annual income for local communities and business operators
• Employee competency level increased by 4.15% per year on average

Governance Achievements

• Achieved zero work-related accidents (Target Zero)
• Rated “Excellent” and received 5 of the National Corporate Governance Committee’s symbols
• Adheres to the ten principles of the United Nations Global Compact (UNGC) at Advanced Level

Climate Goals & Targets

Environmental Challenges

• Global oil price volatility
• Growth in renewable energy
• Emerging technologies and technological innovations
• Greenhouse gas emissions
• Resource efficiency
• Potential environmental spills
• Methane leakage

Mitigation Strategies

• Greenhouse Gas Reduction Strategy
• Circular Model for E&P Strategy
• Ocean for Life Strategy
• ENTERPRISE Project (organizational transformation, work processes, and corporate culture)
• Investments in natural gas value chain and renewable energy
• Research and development of Carbon Capture Utilization and Storage (CCUS) technology
• Improved marine transportation efficiency
• Methane gas detection and maintenance

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supported local suppliers
• Vendor and supplier management measures and assessment
• Transparent and fair procurement process (83% of procurement spending through bidding in 2019)
• Centralized inventory management
• Increased vessels’ cargo deck utilization (88% on average)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Global warming and climate change
• Increasing role of alternative energy sources

Opportunities

• Development of energy-efficient products and technologies

Reporting Standards

Frameworks Used: UNGC, UN SDGs, Dow Jones Sustainability Indices (DJSI)

Certifications: ISO 14001:2015

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Corporate strategies aligned with UN SDGs

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 2019 Dow Jones Sustainability Indices (DJSI) World Oil and Gas Upstream & Integrated Industry (Industry Leader)
• 2019 SET Award in Best Sustainability Award
• NACC Integrity Award
• Numerous other awards listed in the report

Environmental Metrics

ESG Focus Areas

• Greenhouse Gas Reduction
• Circular Economy for E&P
• Ocean for Life
• High Performance Organization (HPO)
• Governance, Risk Management and Compliance (GRC)
• Stakeholder Value Creation (SVC)

Environmental Achievements

• Reduced greenhouse gas emissions by 315,215 tonnes of carbon dioxide equivalent
• Reduced energy consumption and recycled energy by 3.18 million gigajoules
• Reused, recycled and recovered 46% of waste
• Turned waste (drill cuttings) to road construction material and paved 168-meter road
• Reused and recycled 62% of water
• Renewable energy accounts for 77% total energy consumption of Thai offshore production platforms
• Achieved zero hazardous waste to landfill

Social Achievements

• Launched 196 social development projects
• Increased target community's annual income per person by >10 times compared to the baseline data before Aquatic Animal Hatchery Learning Center implementation
• Established 34 conservation networks in Songkhla Province
• Employee volunteering hours: 4,021
• Developed negative pressure patient transfers and mobile negative pressure boxes to help fight COVID-19, contributing over THB 44 million in donations

Governance Achievements

• Implemented “Smart Assurance and GRC in Common Sense” scheme to become a GRC role model for Thai listed companies
• Increased GRC maturity level
• Applied GRC with new transition projects
• Implemented online web-based risk register system
• Expanded the Whistleblowing System to subsidiaries and overseas projects

Climate Goals & Targets

Environmental Challenges

• COVID-19 outbreak
• Oil prices plunging below USD 20 per barrel
• Energy transition
• Growth trend of renewable energy
• Rapid technological changes
• Global warming and climate change

Mitigation Strategies

• Launched a New Normal Transformation work plan (new way of working, efficiency enhancement for IT, LIVE broadcast of internal communications)
• Reduced expenses and increased revenue and work efficiency during oil price volatility
• Developed and implemented strategies for Greenhouse Gas Reduction, Circular Model for E&P, and Ocean for Life
• Invested in AI and Robotics
• Conducted a feasibility study on electricity generation and alternative energy investment in Southeast Asia

Supply Chain Management

Responsible Procurement

• Ensuring all new projects, suppliers, and contractors operate under the same GRC standards

Climate-Related Risks & Opportunities

Transition Risks

• Uncertainty in oil consumption
• Increase in renewable energy consumption

Opportunities

• Development of energy-efficient products
• Renewable energy investments

Reporting Standards

Frameworks Used: GRI Standards (core level), Oil and Gas Sector Disclosures (OGSD), International Petroleum Industry Environmental Conservation Association (IPIECA)’s Oil and Gas Industry Guidance on Voluntary Sustainability, Dow Jones Sustainability Indices (DJSI), AA1000 AccountAbility Principles Standard 2018 (AA1000APS), Sustainability Accounting Standards Board (SASB)’s SASB Materiality MapTM, Integrated Reporting (IR) Framework

Certifications: ISO 22301:2012 (S1 Project)

Third-party Assurance: KPMG Phoomchai Business Advisory Limited (limited assurance)

UN Sustainable Development Goals

• 7, 8, 12, 13, 14, 16

PTTEP's Sustainable Development Framework and sustainability-related material issues correspond with these UN SDGs.

Sustainable Products & Innovation

• Nautilus subsea pipeline maintenance robot

Awards & Recognition

• Member of Dow Jones Sustainability Indices (DJSI) for seven consecutive years
• Member of FTSE4Good Index Series for five consecutive years
• Included in Thailand Sustainability Investment Index (THSI) for five consecutive years
• NACC Integrity Award for two consecutive years
• 21 social development awards
• ADIPEC Awards 2020 Breakthrough Technological Project of the Year (Nautilus)
• Numerous other awards listed in the report

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Governance
• Safety
• Human Rights
• Community Development
• Supply Chain Management

Environmental Achievements

• Achieved 100% group-wide operations certified by a third party for Environmental Management System (EMS) aligned with ISO 14001.
• Zero routine flare for new assets.
• Implementation of circular economy concept.
• Methane emission reduction via technology.
• Carbon removal project and carbon credit purchasing.
• No gross deforestation for exploration & production from 2021 onwards.

Social Achievements

• 100% of employees, subsidiaries, vendors/suppliers and joint ventures received CG&BE training.
• Established Welfare Committee representing 100% of employees.
• Introduced various channels for grievance handling.
• Provided support programs to foster employees’ health and well-being (flexible working hours, work-from-home option, etc.).
• Implementation of Ocean for Life Strategy to conserve and rehabilitate marine resources and ecosystem.

Governance Achievements

• Established Enterprise Risk Management (ERM) Policy and Framework aligned with ISO 31000 and COSO.
• Information security management system verified by a third party to conform to ISO 27001.
• Developed Corporate Governance & Business Ethics (CG&BE) booklet.
• Established Supply Chain Management Policy with vendor sustainable code of conduct and audits.
• Established Human Rights Policy and management system aligned with UN standards.

Climate Goals & Targets

Environmental Challenges

• Climate change
• Global economic uncertainties
• Energy transition
• Degradation of resources and environment
• Biodiversity crisis
• Cybersecurity threats

Mitigation Strategies

• Net Zero Greenhouse Gas Emissions target by 2050.
• Lower carbon E&P portfolio management.
• Investment in natural gas and future energy options.
• Diversification beyond petroleum exploration and production.
• Implementation of Smart Assurance and Mindful GRC strategies.
• Business Continuity Management System (BCMS) aligned with ISO 22301.
• Third-party vulnerability analysis and incident response plan.

Supply Chain Management

Supplier Audits: Regular on-site audits of critical and high ESG risk suppliers.

Responsible Procurement

• PTTEP Vendor Sustainable Code of Conduct
• Green Procurement

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Exploring future energy options

Reporting Standards

Frameworks Used: GRI Standard

Certifications: ISO 14001, ISO 45001, ISO 27001

Third-party Assurance: Independent external third party

UN Sustainable Development Goals

• 7
• 8
• 12
• 13
• 14
• 16

The UN SDGs directly relate to PTTEP operational activities.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental
• Social
• Governance

Environmental Achievements

• Reduced GHG emissions intensity by 12.5% in 2023 compared to 2020 baseline.

Social Achievements

• Collaborated with Royal Initiative Discovery Foundation on peatland forest conservation and carbon credit methodology development.
• Partnered with Kasetsart University to monitor seagrass plantation survival rates.
• Collaborated with Chulalongkorn University on research for CO2 absorption using seaweed and seashells.

Governance Achievements

• Integrated ESG and climate-related KPIs into Corporate KPI, with 10% weighting under "Decarbonize" and 25% under "Diversify" strategies.
• Established a Climate Management Plan covering 100% of current and new operations, addressing heat waves, tropical cyclones, heavy precipitation, drought, and other water-related risks.

Climate Goals & Targets

Environmental Challenges

• Heatwaves reducing worker productivity and increasing maintenance costs.
• Tropical cyclones causing production interruptions.
• Potential for significant impacts from carbon pricing schemes.
• Model uncertainty in climate scenario analysis.
• Scenario uncertainty in climate scenario analysis.
• Internal uncertainty in climate scenario analysis (due to the complexity of climate systems).

Mitigation Strategies

• Reduce working hours, postpone maintenance, appropriate clothing, mandatory drinking breaks, and smartwatches for heat stroke detection.
• Implement monitoring for early detection of tropical cyclones and identify vulnerable infrastructure areas.
• Explore measures to prevent or minimize spill magnitude and mitigation options.
• Develop/update a strategy and protocol for managing storage tank capacity and update the spill prevention, control, and countermeasure plan accordingly.
• Adoption of an Internal Carbon Price (USD 35-60 per tonne of CO2 equivalent for new M&A projects).
• Further emission reduction projects within PTTEP.
• Investing in natural gas and conducting studies to decrease greenhouse gas emissions.
• Supporting Thailand's goals to achieve Carbon Neutrality and Net Zero Greenhouse Gas Emissions.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Heatwaves
• Tropical cyclones
• Heavy precipitation
• Drought
• Water-related risks

Transition Risks

• Carbon pricing
• Policy changes
• Technological advancements
• Market shifts
• Reputational risks

Opportunities

• Renewable energy
• Decarbonization technologies (CCS, hydrogen)
• Energy efficiency improvements

Reporting Standards

Frameworks Used: TCFD

Sustainable Products & Innovation

• Low carbon products (53% of total revenues)
• Avoided emissions products (Lan Sang Arun solar power project)