GPSC examines issues that matter most to its business operation in terms of sustainability for internal and external organization. These issues are assessed and prioritized under the materiality assessment framework of the Global Reporting Initiative (GRI) Standards while at the same time addressing all stakeholders’ expectations and global sustainability trends. The company’s operation strategies, along with current and potential risk and opportunity factors, are also taken into consideration as assessment guidelines. The steps of materiality assessment are as follows
Step 1 Identification
Step 1 Identification
Identification of relevant issues that have impacts on sustainability of GPSC and its stakeholders throughout the value chain across economic, social and environmental dimensions. Issues taken into considering include all stakeholder expectations, global changing trends, the company’s operation strategies, risk and challenge factors, GRI Standards, global business and industrial trends, interests of internal and external stakeholders, as well as relevant aspects for effective management to provide benefits for all parties.
- PTT Group’s and GPSC’s Sustainable Development Guidelines
- International Practice Guidelines, including GRI1, DJSI2, SDGs3, WBCSD4, CDP5, ISO 260006, and UNGC7
- All internal and external stakeholders’ voices
- Annual Employee Engagement Survey
- Community Satisfaction Survey
- Community Satisfaction Survey
- Corporate image management process
- Complaint channels
- Corporate risk assessment
- Workshops with company’s executives.
- 1 Global Reporting Initiative (GRI) is the organization that initiates the international report which is used as a prototype of preparing a report of sustainable development.
- 2 Dow Jones Sustainability Indices (DJSI) is a family of capital indices that assesses the effectiveness of business operations according to the guideline of sustainable development of the world’s leading companies which the worldwide funds use it as the investment criteria.
- 3 Sustainable Development Goals (SDGs) is a set of sustainable development goals under the United Nations (UN), comprising 17 main objectives to be achieved and implemented by 2030.
- 4 World Business Council for Sustainable Development (WBCSD) is the committee of business persons operating business for the world’s environment. This committee comprises business persons from the groups of more than 120 international leading companies that are officially accredited in the “Earth Summit” in 1992.
- 5 Carbon Disclosure Project (CDP) is the global institution highly recognized by its environmental management.
- 6 ISO 26000 is an international standard for social responsibility.
- 7 UN Global Compact (UNGC) is a United Nations initiative that incorporates into business policies and strategies so companies can uphold to the accepted international standards in the area of human rights, labor, environment and anti-corruption.
Step 2 Prioritization
Step 2 Prioritization
Assessing the levels of importance of material aspects to determine what should be reported by taking into account the impacts on GPSC and the impacts on stakeholders. The assessment of each aspect and topic is determined by risk and opportunity assessment and factors affecting the company and stakeholders, along with stakeholders’ voices. Each aspect is classified into three levels of importance; high, medium and low. This report covers and focuses only on the aspects with high and medium material levels.
- Workshops with representatives from all agencies that are directly relevant to each stakeholder group.
Step 3 Validation
Step 3 Validation
Reporting the summary of materiality assessment and identified topics that are in alignment with the GRI Aspects, to be analyzed by responsible parties to ensure a more comprehensive assessment. In addition, the summary will be reviewed by GPSC’s Management Committee for validation and approval of material aspects in GPSC Sustainability Report.
- Materiality assessment analyzed by external shareholders prior to being reviewed by each department.
- Materiality assessment reviewed by the company’s executives.
Step 4 Review
Step 4 Review
Regular reviews of the sustainability report to make sure that the identification of material aspects truly reflects stakeholders’ interests and expectations, and that stakeholder engagement practices are improved via complaints and comments channels, both internal and external, for a better representation of stakeholder interests. Stakeholder engagement channels include participating in sustainability award assessment organized by the Securities and Exchange Commission, Thailand (SEC) and Thaipat Institute.
- The sustainability report reviewed by external agencies.
- Complaints and Comments Channels.
- Sub-group meetings of sustainability agencies to review the sustainability report.
Materiality Matrix 2018
- There is no significant difference in the levels of Importance in 2018.
- No new materiality issues in 2018.
|ECONOMIC||1. Corporate Governance
2. Business Ethics and Anti-Corruption
3. Risk Management
4. Customer Relationship Management
5. Supply Chain Management
6. Reliable Production and Availability
|ENVIRONMENT||8. Environmental Management and Resources Efficiency
9. Climate Change and Energy Management
|SOCIAL||11. Employee Readiness and Well-Being
12. Human Rights
13. Occupational Health and Safety and Well-Being
14. Sustainable Community
Sustainability Alignment Committee: (SAC)
The overall responsibility of PTT Group’s sustainability performance lies with the Group Sustainability Committee, which was renamed the Sustainability Alignment Committee (SAC) in 2014 to better and more closely integrate sustainability management within PTT Group. The Senior Executive Vice President of the Sustainability Management and Project Engineering serves as Chair of the Committee, with committee members from various Business Units and from Flagship companies – PTTEP, PTTGC, TOP, IRPC, and GPSC – meet regularly at least once every quarter to jointly establish sustainability-related plans and strategies, and to monitor progress.
PTT Group Sustainability Management Framework
The PTT Group Sustainability Management Framework has been developed to support the PTT Group Sustainability Policy. The Framework is in line with related international standards and guidelines such as World Business Council for Sustainable Development (WBCSD) Vision 2050, United Nations Global Compact (UNGC), ISO 26000, Global Reporting Initiative (GRI), and Dow Jones Sustainability Indices (DJSI).
The PTT Group Sustainability Management Framework consists of 10 Elements as follows:
1. Organizational Governance
Organizational governance is the system by which an organization makes and implements decisions in pursuit of its objectives. Organizational governance can comprise both formal governance mechanisms based on defined structures and processes and informal mechanisms that emerge in connection with the organization's culture and values, often influenced by the persons who are leading the organization. Organizational governance is a core function of every kind of organization as it is the framework for all decision making within the organization.
2. Human Rights
Human rights are defined as the basic rights and freedoms to which all humans are entitled. While the labor rights focus on the rights of the working population, human rights extend to local communities and the supply chain and include rights to natural resources such as water, land, forests and forest products, fisheries, clean air, etc. PTT Group respects the human rights of all our stakeholders by adhering to international human rights principles including the United Nations Global Compact (UNGC), the UN Universal Declaration of Human Rights (UNUDHR) and the UN Framework and Guiding Principles on Business and Human Rights (the Ruggie Framework) on the inherent dignity and the equal and inalienable rights of all individuals.
The effective management of people necessitates addressing a range of different but complementary issues which are critical for the success of the organization into the future. These issues cover the recruitment, capital development, employee retention, and creation of employee attraction in order to build the capacity of all employees to maximize their contribution towards meeting the common goals presented by the PTT Group Vision and Corporate Strategic Objectives. Central to managing people issues is an understanding of and respect for labor rights. Labor rights are a group of legal rights and claimed human rights having to do with labor relations between workers and their employers, usually obtained under labor and employment law. Labor rights relate to workers’ rights such as safe working conditions; the right to form a union/collective bargaining; and prevention of exploitative practices against workers including equal opportunities, working hours, minimum wages, protection from forced labor and unfair dismissal, and benefits.
4. Safety, Health and Environment
PTT Group is committed to protecting the safety and health of its people and the communities and environment in which the organization operates by taking a proactive approach in terms of mitigating impacts, by incorporating technology and best management practices to improve performance, and by keeping abreast of critical emerging issues.
5. Fair Operating Practice
Fair Operating Practices incorporate fairness and transparency into all aspects of the organization’s operations with the aim of supporting competitive but fair business practices, preventing a monopoly or any anti-competitiveness, preventing corruption within the organization, and preventing the distortion of competition to the disadvantage of other organizations and consumers.
6. Corporate Citizenship
Growing public awareness leads to higher expectations being placed on companies in their role as global corporate citizens and their ability to drive sustainable business practices forward.
7. Supply Chain Management
In an increasingly globalized world, outsourcing is used for production, services and business processes and this also brings additional corporate responsibilities and reputational risks. These risks and opportunities must be managed in different ways as they will differ from how they would be managed if the production or services were carried out by the company itself. PTT Group is committed to managing its supply chain in accordance with the UN Global Compact principles to do business with suppliers which can demonstrate their compliance with human rights and labor laws and standards as well as their adoption of environmentally sustainable practices.
8. Product Stewardship
PTT Group is committed to product responsibility standards that not only comply with legislation, but also respond to the social, economic and environmental expectations of local communities, customers, shareholders, regulators and the general public.
9. Reporting and Reputation
Sustainability Reporting is a practice of disclosing outcomes and results that occurred within the reporting period in the context of the organization’s commitments and management approach including organizational performance on economic, environmental, and social issues. Thus, the information reported must be accurate, relevant, and transparent as well as presenting a balanced account of PTT Group’s sustainability performance in accordance with stakeholder expectations. PTT Group is committed to reporting sustainability performance at the corporate level in general accordance with the Sustainable Reporting Guidelines of the Global Reporting Initiative (GRI).
10. Stakeholder Engagement
A stakeholder is any party who is impacted by or has an interest in or influence to the organization’s business operations. This includes, for example, employees, regulators, customers, shareholders, investors, suppliers, industry associations, non-governmental organizations (NGOs), opinion leaders, and communities. Thus, stakeholder engagement is placed at the center of sustainability management in every stage of the organization’s business operations, starting from design and construction to operations and decommissioning. Stakeholder engagement involves identifying and consulting stakeholders to build their understanding and trust; and improving design and management so that activities are integrated into the local social, economic and environmental context and accepted by the stakeholders. To ensure effective communication with stakeholders, it is essential to have strategic communication plans which include the degree and types of engagement will depend on the nature of the issues involved, the number of stakeholders, and the particular context.