Climate Change Data

Environmental Metrics

ESG Focus Areas

• Enhance Clean Environment
• Engage Society
• Ensure Good Governance

Environmental Achievements

• Total Greenhouse gas emissions reduced by 28,003 tons of carbon dioxide equivalent through energy efficiency improvement projects.
• Zero industrial waste disposal to landfills.
• Reduced dependence on external fresh water resource by 37% replaced with desalination
• No freshwater withdrawal for consumption from water-stressed areas.

Social Achievements

• 95% community engagement score.
• No human rights complaints.
• 92% employee engagement score.
• 94% employee satisfaction score.
• Employee turnover rate decreased from 4.93% to 3.62%.

Governance Achievements

• No cases or fines for non-compliance with laws and regulations, or cases of corruption and bribery.
• No financial losses due to cyberattacks impacting business operations.
• Zero case of non-compliance with the Company’s code of conduct, violation of laws and regulations, and actions that may induce corruption.
• 98% supplier satisfaction score.
• 94% customer engagement score.

Climate Goals & Targets

Environmental Challenges

• Prolonged economic stagnation resulting from fluctuations in financial markets and consumer goods prices.
• Geopolitical conflicts in different regions worldwide.
• Demographic shifts towards an aging society.
• Achieving Thailand's goal of becoming a net zero greenhouse gas emissions nation by 2065.
• Transition towards clean energy usage.
• Intensive actions of climate change, including the establishment of Carbon Neutrality and Net Zero targets.
• Air quality management, such as control of Volatile Organic Compounds (VOCs) emissions.
• Compliance with environmental regulations.
• Circular economy.
• Preparation for drought situations.
• Biodiversity conservation.
• Impact of the business operations on local communities.

Mitigation Strategies

• Adapted the business strategy to align with global trends to reduce the impact of oil refining business fluctuations.
• Developed a strategic plan under the concept of “TOP for the Great Future”, built on the foundation of the 3Vs business strategic framework.
• Established business operational guidelines under the “TOP” concept (Transformation, Operational to Business Excellence, Partnership and Platform).
• Implemented cost management initiatives through different measures, such as procurement management, effective maintenance planning, the use of co-insurance with the PTT Group, proactive risk management in foreign exchange, financial cost reduction through various financial tools, and tax planning.
• Adopted the sustainability or Environment, Social, and Governance (ESG) management process to enhance work process and procedures that can reduce environmental impacts on communities and other stakeholders.
• Implemented additional projects to control SOx and NOx emissions, VOCs emissions, and Particulate Matter (PM).
• Established the Environment and Community Relation Committee (ECRC).
• Implemented management approaches in four aspects to efficiently manage the oil and chemical spill (Prevention, Mitigation, Prevention of Reoccurring Incidents, Personnel Development).
• Developed the “Long-term Water Supply Strategy 2023–2033” to ensure water security and reduce the risk of water scarcity.
• Implemented 23 energy efficiency improvement projects.
• Participated in the Thailand Voluntary Emission Reduction Program (T-VER).
• Developed a Net Zero GHG Emissions Strategy, known as the 3Cs strategies (Cut Down Existing Emissions, Compensate Residual Emissions, Control Future Emissions).

Supply Chain Management

Supplier Audits: 45 suppliers assessed in 2022, 32 in 2023

Responsible Procurement

• Sustainable green procurement
• Thaioil Group Supplier Code of Conduct (SCOC)

Climate-Related Risks & Opportunities

Physical Risks

• Water scarcity
• Offshore cyclones

Transition Risks

• Regulatory changes (carbon pricing, emission trading schemes, EU’s Carbon Border Adjustment Mechanism (CBAM))
• Technological advancements in alternative energy
• Market shifts (declining demands for oil products, growth of electric vehicle demand)

Opportunities

• Government initiatives supporting clean energy investments (hydrogen production, sustainable aviation fuel)
• Investment in new businesses that contribute to mitigating the impacts of climate change
• Adjusting business strategies to align with the circular economy

Reporting Standards

Frameworks Used: Integrated Reporting Framework of the Value Reporting Foundation, Global Reporting Initiative (GRI) Standards, United Nations Global Compact (UNGC), Task Force on Climate-Related Financial Disclosures (TCFD), United Nations Sustainable Development Goals (SDGs)

Certifications: ISO 14001:2015

Third-party Assurance: External verifier

UN Sustainable Development Goals

• Goal 3
• Goal 4
• Goal 7
• Goal 8
• Goal 9
• Goal 12
• Goal 13
• Goal 15
• Goal 16

Thaioil Group determined 14 targets which are aligned with 9 out of the 17 United Nations Sustainable Development Goals (SDGs).

Sustainable Products & Innovation

• Benzene-free solvents
• Rubber oils
• Low Sulfur Fuel Oil (LSFO)
• Methyl Cyclohexane (MCH)
• Cyclopentane CP80 and CP97
• Gasohol
• Biodiesel
• Heat Transfer Oil (HTO)
• Emulsified Asphalts (EA)
• Rubber Process Oil (RPO)

Awards & Recognition

• Top 1% of the S&P Global ESG Score
• Member of the Dow Jones Sustainability Indices (DJSI) 2023 for the 11th consecutive year