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Sustainable Code of Conduct for Suppliers of Thaioil Group

Sustainable Code of Conduct

for Suppliers of Thaioil Group

In accordance with the Thaioil Group Sustainability Management policy and Sustainable Procurement Policy, Thaioil Group will pursue collaborative actions through SCOC and Supplier ESG Program with Suppliers who are the key to success in delivering sustainable development capabilities alongside Thaioil Group. Therefore, this SCOC are covered three dimensions: Environmental, Social, and Governance whilst contributing to the realization of Sustainable Development Goals as follows:

SUSTAINABLE CODE OF CONDUCT FOR SUPPLIERS OF THAIOIL GROUP

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Environmental Management

Suppliers shall manage environmental aspects in a systematic manner to comply with all applicable environmental laws, regulations, and standards. Suppliers shall perform continuous performance improvement towards environmental challenges and undertake initiatives to enhance greater environmental responsibility which is a precondition for the survival and prosperity of humans and other living beings. Suppliers shall manage the relevance and feasibility of environmental strategies such as life cycle analysis, environmental impact assessment and eco-efficiency. Suppliers shall promote environmental principles with their suppliers and other stakeholders in the supply chain, encourage a precautionary approach, environmental responsibility, environment risk management, and ensure the operation in accordance with the “polluter pays” principle.

Sustainable Resource Efficiency

Suppliers shall ensure efficient resources management which includes the efficient use of energy and water consumption, and the reduction of environmental pollution. Suppliers shall strive to promote the efficient use of raw materials (reuse, recycling, circular economy, life cycle approach) and reduce the impact of their activities and products on the environment.

Biodiversity, Deforestation or Land Conservation

Suppliers shall collaborate, aim to protect, and value the biodiversity, ecosystem services, avoid gross deforestation, and sustainably use of the land and natural resources, including promote environmentally sound urban and rural development.

Pollution Prevention and Waste Management

Suppliers shall identify, separate, and manage solid waste, chemicals, and hazard materials along with monitoring, controlling, and water treatment from production process and related process before being released into the external environment to ensure safe handling, movement, storage, and disposal. In addition, Suppliers shall prevent pollution emissions to air and discharges to water, waste management, from the use and disposal of toxic and hazardous chemicals and pesticides, and manage other forms of pollution such as noise, odor, vibration, electromagnetic emissions, radiation, and viral or bacterial pollution as generated or received as a part of business operation in line with the applicable laws and regulations as well as initiate monitoring and control measures consistent with Thai Oil Zero Landfill Aspiration.

Greenhouse Gas Reduction and Climate Change Mitigation

Suppliers shall mitigate, in collaboration with their suppliers, the adverse climate change impacts of direct and indirect greenhouse gas emissions in order to reduce the greenhouse gas emission of its own operation and its supply chain, as well as consider aiming for carbon neutrality through participating in appropriate program with either Thaioil Group or other organizations. Suppliers should consider calculating carbon footprint (not just carbon emissions) associated with their products or services.

Human Rights

  • Non-Discrimination

Suppliers shall respect the differences or diversity among employees and workforces in the workplace and equally treat all employees and workforces without unfairly benefiting or depriving employees and workforces based on their race, nationality, skin color, ancestry, religion, social status, marital status, gender, age, sexual orientation, disability, political beliefs. Supplier shall not discriminate in any manner.

  • Anti-Harassment

Suppliers shall oppose to harassment and threat in any forms within the organization that covers both sexual and non-sexual unwelcome conduct or behavior that creates hostile work environment. Sexual harassment relates to gender and sexual orientation and non-sexual harassment associates with personal characteristics or situations, such as race, religion, age, ethnicity, intelligence, disability, physical stature, etc.

  • Child Labor

Suppliers shall not engage and employ under-aged or involuntary labor of any form. Young workers or workers aged under 18 years old must also be barred from performing night work or hazardous work.

  • Forced Labor

Suppliers shall not employ forced or unwilling labor in any form including forced labor, bonded or indentured labor, any work people are forced to do against their will under threat of punishment.

  • Freedom of Association

Suppliers shall acknowledge the rights of their employees to freedom of association and collective bargaining.

  • Working Conditions

Suppliers shall conform to all applicable local laws and regulations regarding working conditions, including working hours, remuneration and lay-off practices.

  • Wages and Benefits

Suppliers shall comply with labor law on wages, compensation, and various forms of benefits, and shall not deduct wages under any circumstances unless otherwise exempted by law.

  • Employment Creation and Skill Development

Suppliers shall promote and support activities encouraging the development of skills and knowledge and abilities for employees and operators by career development planning, existing knowledge and abilities review, training or providing opportunities to learn new things to enhance readiness of employees and operators for efficient and effective operations.

Customer Issues

  • Customer Data Protection and Privacy

Suppliers shall provide customer data protection and privacy to safeguard customers rights of privacy by complying with the laws, policies, regulations, requirements, and practices on the protection of Personal Data for customers and other relevant persons.

  • Protecting Customers’ Health and Safety

Suppliers shall ensure that goods or services shall not impact customers’ health and safety, including avoiding the supply of goods or services infringing any intellectual properties whether in the process of consumption, use, storage, maintenance, repair, and return.

  • Education and Awareness

Suppliers shall contribute to the education of customers by providing accurate, health and safety related information including environmental impacts, e.g., by providing labelling, instructions, user manuals, and other public relations.

  • Customer Service, Support and Complaint and Dispute Resolution

Suppliers shall offer adequate customer service, support, and complaint mechanisms, including proper installation, warranties and guarantees, and technical support regarding use, as well as making provisions for return, repair and maintenance. Make use of alternative dispute resolution, conflict resolution and redress procedures that are based on national or international standards, ensure customer’s safety, are free of charge or are at minimal cost to customers.

Embeds good corporate governance

Embeds good corporate governance, business ethics, and anti-corruption principles since the first day of employment. The Company integrates the principles into the orientation program for new employees and shared the CG handbook through the CG Reporting system. As a result, 100% of new employees acknowledged and participated in the trainings.

Organized knowledge sharing sessions to customers both in online and on-site presentations with various topics

Organized knowledge sharing sessions to customers both in online and on-site presentations with various topics such as Fundamental of Refinery Process and Business & Refinery Overview. This aims to enhance customers’ knowledge and understanding of the oil refinery industry and market.

Organized “Safety and Happy Hours” activity for drivers in 2024

Organized “Safety and Happy Hours” activity for drivers in 2024 to raise awareness on safety during product pickups for customer groups working at fuel stations, transport coordinators, ticket room staff, and other related units.

Organized cultural promotion activities through the “Cultural Activity” project.

Organized cultural promotion activities through the “Cultural Activity” project. The activity of this project aims to enhance the learning about national history and art together with customers at the Chao Sam Phraya National Museum, Phra Nakhon Si Ayutthaya Province.

Thaioil Innovation Awards 2024

Innovation Talk

Invited external speakers with expertise in innovation to share knowledge to employees. Notable speakers included Ajarn Thongchai Rojkangsadal from the Faculty of Engineering, Chulalongkorn University; Mr. Thana Slanvetpan, General Manager of AI and Robotics Ventures Co., Ltd.; Mr. Nattapat Thanesvorakul, a corporate innovation assessment consultant from RISE Accel Co., Ltd.; and Mr. CK Cheong, CEO of Fastwork Technologies Co., Ltd. In 2024, a total of 4 sessions were held with 15% increase in employee participation compared to the previous year. Moreover, the overall satisfaction level improved from 93 to 94 out of 100. There were many employees participating in each session reflecting to consistently positive response from them.

TOP BCG Updates

Prepared public relations materials in the form of monthly emails to enhance knowledge on BCG, a new economic model of the Thai government focusing on the three economic systems – Bio-Economy, Circular Economy, and Green Economy. The examples of contents involve electric vehicles, hydrogen energy, and other innovations for reducing global temperatures. In 2024, the overall satisfaction level was at an excellent level (97 out of 100).

TOP Innovation E-newsletter

Prepared the public relations media through weekly emails distributed to all Thaioil Group’s employees. The content will focus on promoting creativity, out-of-the-box thinking, and a growth mindset to cultivate the qualification of quality innovators and to build awareness of the importance of innovation in the present era. As a result, these activities have created good momentum and feedback for the Company. In 2024, the Company disseminated a total of 39 TOP Innovation E-newsletters with over 24,707 readers. Meanwhile, the readers’ satisfaction score was at an excellent level (97 out of 100).

Innovation and Learning Day 2024

Innovation Failure Challenge activity

Innovation Roadshow activity

Innovation Idea Challenge activity

Generating New Actionable Ideas through Change Agent SME
Idea Facilitation & LO Inspirer Workshop

Organized a workshop activity to develop the change agent by choosing the representatives from selected functions. The groups of change agents will be developed with the full knowledge, skills, and tools, to facilitate them to create innovation culture and invent new ideas within their functions.

CEO Townhall and Management Meeting

rganized a communication activity to encourage communication between the CEO and all employees to emphasize the Company’s direction, strategy, plans, and performance. This activity helps to ensure that employees understand and are aware of the top management’s commitment to bring changes to the Company and all employees. In addition, the progress of the Innovation Culture Awareness project will be regularly reported in the Company’s top management meetings to stimulate them to foster an innovation culture among employees.

Building Innovation Culture Awareness through Top
Management Workshop (Management Outing Workshop)

Organized a workshop activity for top management to be the leading change makers. This aims to create Innovation Culture Awareness for employees in their line or function through the core behavior of “Lead to Innovation Culture.” In addition, the workshop fosters them to exchange their experiences with external speakers on innovation creation, communication, and practices to apply the i-LEAD behavior as a role model.

Teach for Thailand Project

Objective

To develop potential changemaker teachers to serve as teaching assistants for middle school students.

Project Type

Teach for Thailand Project

Performances 2024

Thaioil Group has allocated budgets to develop teachers to be changemakers for the sixth consecutive year. In 2024, the Company funded two teaching assistants for science and mathematics subjects in junior high school at Wat Mano Rom School, Sriracha District, Chonburi Province, which is located close to the Thaioil refinery. This project was conducted for one year and achieved positive performance evaluations, including:
1. Taught a total of 489 students in science and mathematics subjects during the 2024 academic year.
2. Compared to the average post-test score (28.51) and the average pre-test score (27.57) in the first semester, there was an increase in the student’s academic performance, personality traits, and essential skills. Furthermore, it also found that changemakers fostered and developed student’s personality traits in terms of perseverance, growth mindset, and the ownership of their learning. Similarly, they also contributed to and improved student’s essential skills, consisting of critical thinking, collaboration, and self-awareness.
3. Adopted technologies in the teaching materials, such as videos, board games, and online programs. This resulted in the students’ development and foster positive attitude towards the studied subject through demonstrating the ability to answer questions, classify examples, and collaborate well in team with their classmates.
4. Majority of the students recognized the dedication and significant development in work performance of changemaker teachers.
5. The school director and staff were satisfied with the teaching performance of the changemakers. Their overall satisfaction score was 9.1 out of 10. Furthermore, 92 percent of respondents acknowledged that the changemakers were competent and possessed appropriate characteristics for performing the work in challenging contexts. Moreover, changemakers regularly exchange their knowledge with the students.

PTT Group Model School Project and CONNEXT ED Project

Objective

To support basic education and develop leaders in the educational sector, to become a significant force driving education through knowledge exchange, learning, and the development of schools with school executives.

Project Type

PTT Group Model School Project and CONNEXT ED Project

Performances 2024

In 2024, Thaioil Group conducted various activities under the PTT Group Model School and CONNEXT ED projects:
1. Artificial Intelligence (AI) Readiness Program: This program aims to encourage learning and provide knowledge for supporting the understanding of youth in Artificial Intelligence (AI) technology and the Internet of Things. Moreover, it also aims to encourage youth to recognize the importance of technology, including its impact on the nation’s development in terms of economy, society, education, and culture. As well as this project was also expected to inspire the next generation to pursue studies in science and technology, with the purpose of developing expertise in AI and IoT, which are the key drivers for the country’s future technological advancement. There are 2 schools under CONNEXTED project, with 6 participants.
2. Thaioil Group Volunteer Spirit Program aims to promote the employees to engage in volunteer activities by providing waste separation knowledge and participating in football, futsal, table tennis, and volleyball clinics for students in the communities surrounding the refinery.

Forest Planting Project for the benefits of Carbon Credits

Objective

To support the forest restoration and conservation target, which can extend Thailand’s green areas and reduce greenhouse gas emissions through enhancing carbon dioxide sequestration, coupled with improving the quality of life for communities surrounding the target forest areas.

Project Type

Forest Planting Project for the benefits of Carbon Credits

Performances 2024

Thaioil Group implemented reforestation projects for carbon credit benefits, covering a total of 8,656.22 rai as the following detail.
1. 8,300 rai of terrestrial forest in Phrae Province in collaboration with the Royal Forest Department.
2. 356.22 rai of mangrove forest in Chon Buri and Trang Provinces in collaboration with the Department of Marine and Coastal Resources.

These projects were expected to capture 88,000 tons of carbon dioxide equivalent over the 10-year project period and enhance biodiversity by selecting and planting local tree species in target forest areas.

In addition, to continue the implementation of reforestation and forest conservation, Thaioil Group has also supported the establishment of 4 community enterprises, which it does not only aim to distribute local incomes and encourage community economy, but it also aims to enhance the knowledge regarding to forest conservation. Furthermore, the Company also supports improving local quality of life through promoting job creation and advocating in educational, social, and cultural development in the communities.

Thaioil CE WE GO Project: Promoting Circular Economy Values

Objective

To raise awareness of energy and environmental conservation among employees and foster positive coexistence behaviors within the organization.

Project Type

Thaioil CE WE GO Project: Promoting Circular Economy Values

Performances 2024

In 2024, Thaioil Group conducted activities under the “Thaioil CE WE GO” project, as follows:

1. Organized 2 sessions of Green Office training for the Auditorium Building and the Thaioil Health and Learning Center, with the aim of preparing for registration of Green Office certification with the Pollution Control Department for both buildings in 2025. 
2. Conducted a study tour project with 10 representative households and the Ban Na Kao community committee by visiting the waste management model community project in Rayong Province.

Thaioil CE School Model Project

Objective

To raise awareness and contribute knowledge with communities and society on the importance of the Circular Economy (CE) and relevant topics.

Project Type

Thaioil CE School Model Project

Performances 2024

Thaioil Group organized activities to provide knowledge and raise awareness of waste management and circular economy management for students from kindergarten to elementary level in three schools, namely Boonjitwitthaya School, Laemchabang 1 Municipality School, and Laemchabang 2 Municipality (Foundation Tailong – Cheng Phonprapha) School in Chon Buri province. The waste management activities were conducted through four learning practices, including waste segregation, composting from food scraps, recycling used vegetable oil, and converting waste into income. From 2022 to 2024, these schools joined in this project have collected a total of 12,240.24 kg of recycled waste, or equal to reducing greenhouse gas emissions by 27,725 kg of carbon dioxide equivalent. In addition, the Company regularly monitors the progress and takes the knowledge of this project to further develop other related activities.

"Waste To Value”

Objective

To raise the awareness of waste segregation and recycling among students with the purpose of encouraging youth to understand the importance of environmental care. Moreover, it also aims to support effective plastic waste management to reduce waste in schools and create a clean and sustainable environment.

Project Type

“Waste To Value”

Performances 2024

Thaioil Group has added value to the “Thaioil Run For the Green Future 2024” event held in February 2024 to reduce plastic waste in schools and raise environmental awareness among youth. As a result, the Company has provided plastic bottle segregation equipment to eight schools in the Laem Chabang area. These schools encouraged students to participate in waste segregation and plastic recycling. Those recycled plastics were sent to the Company for proper recycling. However, students can exchange those collected plastic bottles to useful items such as socks, school supplies, sports uniforms, and cleaning equipment. This project was expected to reduce the financial burden on parents and schools.

Youth Environmental Conservation Project: reviving waste into new life (TOP GREEN X)

Objective

To enhance understanding and awareness of environmental problems, especially the impacts of plastic waste on nature and ecosystems, as well as motivate behaviors that reduce, avoid, or stop the use of single-use plastics.

Project Type

Youth Environmental Conservation Project: reviving waste into new life (TOP GREEN X)

Performances 2024

Thaioil Group has collaborated with the Faculty of Science, Department of Environmental Science and Technology at Kasetsart University, Sriracha Campus, to organize an activity on recycling waste into brooms. This activity provided the knowledge on waste management and the characteristics of different types of waste, involving creating brooms from plastic bottles. The purpose of this activity was to foster environmental awareness among youth, with a total of 70 youths who participated in the activity.

Aquatic Species Project in collaboration with the fishery communities

Objective

To restore the marine and coastal ecosystems and resources to a state of abundance.

Project Type

Aquatic Species Project in collaboration with the fishery communities

Performances 2024

Thaioil Group actively supported the release of aquatic species in fishery communities of Ban Ao Udom, aiming to restore marine and coastal ecosystems and natural resources. This project was expected to increase the population and biodiversity of marine species, contributing to the ecological balance of the Ao Udom Bay. In 2024, the Company participated in releasing aquatic species such as white shrimp broodstock, juvenile blue swimming crabs, and squid during various important festivals. In addition, the Company also participated in the beach clean-up activities around coastal communities.

Educational Project

Objective

To provide educational opportunities for youth in Laem Chabang City Municipality and Si Racha District, while empowering them to develop their potential and contribute to society as key drivers of the country’s future development.

Project Type

Educational Project

Performances 2024

Thaioil Group provided 252 scholarships to primary, secondary, vocational, and university students who behaved well and were diligent in their studies. Additionally, the Company also provided 11 educational funds under the Thaioil Group fund to educational institutions, which are located in Laem Chabang City Municipality and Si Racha District. This fund has a total contribution amounting to 1,900,000 THB. Additionally, this fund is part of an annual program that Thaioil Group has consistently implemented to support education and foster academic excellence.

Community Economic Support Project

Objective

To enhance community capabilities through job creation projects in the Si Racha District at the Community Health and Education Center.

Project Type

Community Economic Support Project

Performances 2024

In 2024, Thaioil Group conducted community economic development activities as part of the Community Economic Promotion Project. The activities include:

1. Collaborated with the Faculty of Management Sciences at Kasetsart University Sriracha Campus to develop community products from local raw materials. This project aimed to add value and elevate the quality of community products to meet the standards. Moreover, the Company also participated in an open-house academic event with the Faculty of Management Sciences at Kasetsart University Sriracha Campus. The purpose of this event was to showcase the development of aromatic candle products, emphasizing the development process and the unique qualities of the products with an emphasis on innovation and value creation from natural materials.
2. Organized a workshop on creating the gift sets of aromatic candles by using slack wax, which is a product of Thai Lube Base Public Company Limited, as its raw material. The Company also conducted modern entrepreneurship 2024 courses, consisting of making alms coins, composting food waste, and fat decomposition by foam courses. In addition, courses on modern entrepreneurship for 2024 were provided, including lessons on making alms coins and composting food waste into fertilizer using innovative methods. These workshops aimed to generate income for communities surrounding the refinery, with over 50 participants attending.

100,000 km. Walk and Run Project

Objective

To encourage communities to engage in walking and running activities to enhance their physical health. The Company also shared healthcare knowledge for participants to apply to themselves as well as their families.

Project Type

100,000 km. Walk and Run Project

Performances 2024

Thaioil Group invited the community surrounding the refinery to engage in physical activity through walking and running, with a goal to collectively achieve 100,000 kilometers. Participants recorded their distances using the “Step Counter” application. Additionally, there were a total of 175 participants taking part in the activity, with two scheduled follow-up events at the Thaioil Health and Learning Center for the Community to monitor progress.

Dental Health Promotion Project for Schools Around Thaioil Group

Objective

To promote oral health for students.

Project Type

Dental Health Promotion Project for Schools Around Thaioil Group

Performances 2024

Thaioil Group has provided dental services, including oral health check-ups, fillings, extractions, fissure sealants, fluoride coatings, and tartar removal. The initiative aims to promote cavity prevention and enhance oral health for a total of 4,520 students in grades 1 to 6 across eight schools in the Thaioil Group’s surrounding communities.

Project to Support Victims of Natural Disasters

Objective

To help and support the victims of  natural disasters in collaboration with the PTT Group.

Background

Thaioil Group has collaborated with the PTT Group to proactively aid affected individuals and alleviate the suffering of people affected by various natural disasters.

Approach

1. Monitor natural disaster situations throughout the country.
2. Provide assistance within the Company’s operational areas.
3. Coordinate with PTT Public Company Limited to extend assistance to areas outside of the Company’s operational areas.

Performance 2024

Thaioil Group has collaborated with the PTT Group to prepare and donate over 20,800 survival bags containing essential supplies, drinking water, and necessary medicines to flood-affected residents in Phrae, Nan, Sukhothai, Phayao, Phitsanulok, Nong Khai, Pattani, Yala, and Narathiwat provinces.

The “You Initiate… We Fulfil” Project: Year 4

Objective

To promote values that encourage employees to engage in volunteer-based social activities and build the reputation of Thaioil Group as an organization that helps society.

Background

Employees with extensive experience and expertise are the cornerstone of the Thaioil Group’s operation. Meanwhile, those employees also adhere to and comply with the “Volunteerism” value. Consequently, Thaioil Volunteer Project, called “You Initiate… We Fulfil”, was first initiated in November 2020 to support this value and commemorate the Company’s 60th anniversary. In this year, the “You Initiate… We fulfil” Project Year 4 was organized to prolong Thaioil Group’s volunteerism.

Approach

1. Publicize the projects during March to July 2024
2. Provide the opportunity for employees to execute this project during March to December 2024
3. The Company allocates a budget of 30,000 – 100,000 THB per function for volunteer activities.

Performance 2024

Thaioil Group commits to stimulate and embed a sense of volunteerism among its employees in accordance with the Company’s core value of “Social Responsibility.” As a result, the Company has implemented the “You Initiate…We Fulfil” project for the fourth consecutive year to invite executives, employees and contractors to engage in community service activities. In 2024, the project was operated under the concept of “Team Spirit+.” The executive management encourage employees and contractors within their department to participate in social activities with their knowledge, expertise, and physical and mental strength. Currently, Thaioil Group has contributed 30,000-100,000 THB per function to support the cost of materials and equipment used in such activities. In this year, there are total of 30 departments participated in the project, amounting to a total budget of 1,000,000 THB. This budget was utilized to organize CSR activities for schools, charities, communities, and others.

Sustainable Energy for Healthcare and Education

Objective

To strengthen the stability of electricity energy for public health agency and educational institution, aiming to enhance the efficiency of services provided to the public and reduce greenhouse gas emissions.

Background

Thaioil Group has utilized its engineering knowledge and expertise, which includes energy management experience, to execute solar power generation system installations for public health agencies and educational institutions since 2018. The project aims to encourage public health agencies and educational institutions to access alternative energy, reduce electricity costs, reinvest the savings into social initiatives, coupled with the reduction of greenhouse gas emissions.

Approach

1. Study the potential and suitability of the target areas.
2. Prepare a report of feasibility and investment cost-effectiveness analysis, including Social Return on Investment (SROI), in collaboration with the project consultants.
3. Propose the project and its budget for approval
4. Select supplier who will install solar power generation system for screened public health agencies and educational institutions
5. Deliver the completed project
6. Continuously monitor and evaluate the project, as well as apply for permits (in case the solar power system has to connect with the Provincial Electricity Authority’s transmission network).

2024 Performance

In 2024, solar power generation systems were installed at 6 hospitals, community health centers, and Border Patrol Police Schools, with a total capacity of 94 kW. The implementation of this project resulted in an annual savings of 900,000 THB. The savings from reduced electricity costs were used to purchase medical equipment, improve healthcare system services for patients and at-risk groups with non-communicable diseases (NCDs), and provide educational opportunities for schools in remote areas. Additionally, this project was also able to reduce greenhouse gas emissions, resulting in a reduction of 51 tons of carbon dioxide emissions per year.

Project for mitigating the oil spill impacts

Objective

To provide relieve to those who are affected by the crude oil spill and to rehabilitate natural resources, and biodiversity.

Background

Due to the occurrence of an oil spill from the crude oil transfer at the Single Buoy Mooring (SBM-2), Thaioil Group has implemented measures to mitigate the impacts of those who are affected while rehabilitating natural resources and biodiversity in the affected area.

Approach

1.Establish a working team to manage complaints and provide relief to those who are affected and distressed.
2. Visit the affected area to understand and address the challenges faced by those who are affected.
3. Define transparent criteria and conditions to provide support under a fair and appropriate framework while providing financial assistance to those who are affected.
4. Formulate rehabilitation working team to develop comprehensive plan and scope of the rehabilitation of marine and coastal natural resources and biodiversity.

Performance 2024

After the deadline for receiving complaints from affected individuals, the Company recorded a total of 905 complaints. Over 80% of individual who filed complaints received financial assistance, totaling approximately 58 million THB. In addition, the Company has appointed a rehabilitation working team to develop comprehensive plan and scope for rehabilitating marine and coastal natural resources and biodiversity in the affected areas through gathering opinions from academicians, government agencies, affected individuals, independent organizations, and various NGOs. Moreover, the Company also collaborated with relevant government agencies that the Company is currently in the process of considering in the next step of proper implementation on this mitigation.

Laem Chabang Youth Training for Jump Rope Championship Project

Objectives

1. To encourage youth to engage in physical exercise, enhancing their bone mass, muscle strength, and reducing the risks of heart disease for improved physical health.
2. Encourage youth to exercise with jumping rope for using free time beneficially

Background

Thaioil Group has initiated the “Laem Chabang Youth Training for Jump Rope Championship Project” in collaboration with the Heart Foundation of Thailand Office under the Royal Patronage since 2011. This project aims to support and encourage physical activity among youth from 8 schools within Laem Chabang City Municipality. Furthermore, the project has contributed to the schools’ and the municipality’s reputation through participation in the Royal Trophy competitions organized by the Jump Rope Association of Thailand.

Approach:

1. Organize a meeting with the school director and physical education teachers from the 8 schools surrounding the refinery in Laem Chabang City Municipality, including Wat Mai Noen Phayom school, Wat Manorom school, Wat Laemchabang School, Baanchakyaichin school, Laemchabang 1 Municipality school, Laemchabang 2 Municipality school, Wat Ban Na (Fin Witthayakom), and Boonjitwitthaya School.
2. Plan the project and propose its budget for approval.
3. Conduct a training camp to develop the skills and potential of jump rope athletes, aiming to select participants for the national-level Royal Trophy competition.
4. Foster new youth athletes to participate in jump rope competitions with the purpose of enhancing the reputation of Laem Chabang City Municipality.

Performance 2024

1. Supported athletes to participate in the 2nd Jump Rope Championship competition for the Newcomer category in June 2024, at the Prachaniwet Sport Center, Bangkok. As a result, they won a total of 4 gold medals, 10 silver medals, and 4 bronze medals. Additionally, Boonjitwitthaya School also won 4 royal trophies of Her Royal Highness Princess Maha Chakri Sirindhorn and achieved the second-highest overall score.
2. Implemented the 2024 Skill Development for Jump Rope Champions Project to qualify and train athletes from eight participating schools, located near Thaioil, for national-level Royal Trophy competitions.
3. Supported over 60 local youth athletes to join the 15th Thailand’s National Jump Rope Competition on November 30 to December 1, 2024, at the Kasetsart Gymnasium. This aims to strengthen youth health and encourage productive use of free time.
4. Local jump rope athletes from Laem Chabang area were selected to be the representative of Thailand at the Jump Rope China Open 2024 in Huaibei, the People’s Republic of China. As a result, the young athletes won 2 gold medals, 1 silver medal, and 4 bronze medals. This significant achievement brough recognition to both the nation and Laem Chabang City Municipality.

The Responses to COVID-19 Pandemic Situation

  • Implemented the COVID-19 surveillance plan covering 3 phases. In Phase 0, or no infected cases, the prevention and surveillance measure will be emphasized. Phase 1 begins when there are suspected or infected cases in Thaioil Group but no impacts on business operations. The Company will then focus on controlling and limiting the spread of the virus. Phase 2 refers to the large number of infected cases in Thaioil Group and creating impacts on business operations. In this case, Thaioil Group will focus on relieving and recovering while the Emergency Control and Business Continuity Center will be activated.

Safety Knowledge Sharing and Engagement

  • Enhanced knowledge, capabilities, and skills of employees and contractors through a safety training center to provide knowledge on safety theory and practice. the Company also evaluated the capability of the employees and contractors, who performed safety-related tasks, and had a continuous Permit to Work System from the previous year. Meanwhile, the roles in emergency and crisis management were also assessed through the Competency Assurance System.
  • Upgraded safety culture in the workplace through Behavior Based Safety (BBS) training program. The BBS training course was designed to train the targeted employees (Train for the Trainers) in order to disseminate knowledge and act as role models for the other employees and contractors. Consequently, safety behavior will be observed, and the operation will be halted, particularly when unsafe conditions arise.
  • Provided training on the Permit to Work System and Clearance Certificate Signatory for those who are involved in performing duties in the work permit system.
  • Organized the “30-60-90 Days with No Harm, No Leak” to strongly emphasize and simulate employees and contractors, raising awareness of safety in the workplace. The goal is to achieve zero Medical Treatment Case (MTC).
  • Organized Thaioil Group QSHE Day 2023 to promote the safety culture for the employees and contractors by awarding and certifying those who have outstanding 2023 QSHE performance. The Company also organized exhibition booths to provide employees and contractors with safety knowledge and awareness.
  • Incorporated Line of Fire into the 12 Life Saving Rule in accordance with the International Association of Oil & Gas Producers (IOGP) guideline.
  • Raised awareness of potential hazards, such as the line of fire, and strictly ensured compliance with the 12 life-saving rules. The Company also encouraged workers to submit Potential Incident Report (PIR), emphasizing the significance of unsafe act and condition as specified in the pre-incident prevention measure.
  • Developed a Contractor Training Matrix to ensure that contractors, who perform the work in operational areas of Thaioil Group, have the suitable knowledge and skills relevant to their job positions.
  • Conducted training and knowledge sharing on safety, occupational health, and workplace environment for new employees and contractors. This aims to build awareness of basic risks and hazards in Thaioil Group’s operational areas, to recognize and understand the safety measures, and to mitigate risks in operations. The training courses include basic safety in refinery, basic firefighting, safety in confined space, and first aid.
  • Conducted specific safety knowledge training for employees and contractors to improve operational effectiveness, ensure safety, and comply with safety requirements. For instance, Authorized Engineer/Authorized Gas Safety Inspector (AE/AGSI) course, Clearance Certificate Signatory course, Authorized Gas Tester course, and electricity safety course.
  • Thaioil Group consistently prioritizes on a proactive strategy. The Company elevated the Management Walk and Talk activity to GEMBA Walk. The management executives conducted a site visit to inspect key activities by engaging in conversations with specific questions. This aims to create mutual understandings and to recommend safety practices in the activities that may pose risks on personal and process safety. The QSHE Rollout activity has been consistently organized with a focus on providing more accessibility. In addition, the campaign to raise awareness about quality, security, safety, and the environment for workers in all operational areas has been expanded to include all operational areas and encourage worker engagement. Moreover, Thaioil Group has applied appropriate management systems to achieve the sustainable development. The performance of such activities is regularly reported and discussed with the management executives for resolutions. Likewise, the annual management review is performed to determine improvement areas and develop annual plans, along with the regular communication with the employees to ensure effective and impactful practices.

Safety Management Improvements

  • Reviewed Permit to Work System, especially the work permits related to heat and ignition (Hot Work). Additionally, all relevant checklists were reviewed to ensure alignment with international best practices.
  • Conducted safety maturity assessment. In 2023, the Company scored 4.16 out of a total of 5.00 points. Thaioil Group prepared the Safety Culture Development Plan in 2023 to build awareness for employees and contractors towards an accident-free organization.
  • Reviewed Permit to Work Inspection by the Area Operation Officers and Safety Audit team to ensure that the practices are aligned with the requirements specified in the permits.
  • Conducted the evaluation of Health Performance Indicators based on the standards of International Association of Oil and Gas Producers (IOGP). In 2023, the Company scored 3.85 out of a total of 4.00 points. The Company commits to improve the development plan for management systems in line with criteria and requirements of the IOGP.
  • Enhanced contractor safety management to align with international best practices and conducted annual contractor safety performance evaluation by the third party. The evaluation covered safety management system and operational performance to evaluate the contractor. The contractor can be categorized by a color code, including green, yellow, and red. This code serves as the criteria for deciding whether the Company should continue doing business with contractors or not. In the case that the contractors categorized in the low level (yellow and red), the Company will allow them to present corrective action plan to remedy the identified issues to comply with requirements within a specific timeframe. In 2023, the Company has updated the “Contract SSHE Bidding and Close Out Evaluation”.
  • Reviewed safety practices for activities or tasks with accident risks, such as heavy lifting with crane, scaffolding, or electric device utilizing within the refinery area. Additionally, the Company conducted training and communicated to relevant employees and contractors to ensure compliance with the requirements.
  • Upgraded notification systems on abnormal or emergency situations for emergency personnel and relevant officers through SMS systems that will promptly notify relevant parties to provide the emergency response efficiently and on a timely manner.
  • Upgraded notification protocols for extreme weather, specifically thunderstorms within a 5-kilometer radius. This is to alert employees to prepare and implement specified safety measures. It also involves notifying emergency response teams for a prompt response in the event of a fire, particularly around the rim seal fire.
  • Reviewed Pre-Incident Plan at levels 1 and 2 to align with international situations and standards, conducted drills as planned to prepare an effective response in emergency situations. In 2023, the Company developed the pre-incident plan at level 2 to support the new production unit of CFP project.
  • Reviewed Emergency and Crisis Management Manual and prepared the emergency response plan to cover environmental and community emergencies. This aims to prepare for CFP project, which is expected to undergo commissioning and start-up in the future. 

Occupational Health and Safety Risk Assessment

  • Reviewed the identification and assessment of risks and hazards assessment that may cause major incidents. The Company identified the control and preventive measures, with constant monitoring for effectiveness. This also involved safety inspections, performance analysis, and provision of the corrective and preventive actions to avoid recurrence for employees and contractors. The safety performance was reviewed monthly and monitored by the management executives.
  • Assessed risks and hazards assessment with high severity and reviewed safety control and preventive measures. The proactive plans and measures on safety and security were established at different levels (defense in depth), covering all high severity risks and hazards, especially chemical spills. The emergency drill of each emergency level was conducted and further developed towards the crisis management level together with external parties and local governments. This process helps prevent and mitigate business impacts, ensuring that Thaioil Group can consistently manage and maintain severe risks at acceptable levels.
  • Reviewed major accident event profiles to be aligned with the risks. The Company also reviewed and conducted emergency and crisis drills, as well as the emergency response plan, according to international best practices. Moreover, the improvements were made to the Emergency Control Center to ensure it is up-to-date and more efficient.
  • Reviewed accident and incident management practices to cover every incident type, such work-related injuries, occupational illnesses, near-miss events, and other incidents including incidents in production processes. The Company also conducted severity and risk assessment through the Risk Assessment Matrix to select the appropriate investigating team and method based on the incident’s severity and risk level. To avoid recurrence, the root cause and appropriate preventative measures were implemented.

Operational Excellence to Business Excellence (O2Bx) Strategy

  • Adjusted the O2Bx strategy to become a world-class refinery and reviewed the corporate safety targets to align with the new strategy – No Harm, No Leak, Goal Zero.
  • Revisited the 5-year Occupational Health, Safety, Emergency and Crisis Management Plan to align with the internal and external environment, risks, the new strategic plans, and new corporate targets.
  • Assigned the management executives to present case studies and significant safety issues from both internal and external sources at the monthly Board Meeting to continuously develop and improve Company’s safety measures.
  • Organized an on-site visit with the CEO and President and the management executives during normal operations, maintenance downtime, and construction period to encourage the workers, demonstrate commitments on safe working conditions, and be the safety role model.

SMILE Activity

Working with the right to health

Thaioil Group has managed and prevented the COVID-19 pandemic through continuous healthcare measures for employees until they recover and safely enable a return to work. The Company’s measures and policies are aligned with the government guidelines. Additionally, the Company has ensured high efficiency in providing safety and instilling confidence among employees, contractors, business partners, and stakeholders of Thaioil Group. The Work From Home Policy has also been established to grant the employee’s rights to choose their most suitable work lifestyle.

Furthermore, the Company has developed the “People First for Employee Support Policy” to respond to the employees’ needs. Meanwhile, the Company provides the assistances to the employees and their families, as well as members of the Thaioil Group Retired Employee Club, who may face the challenges in respect to financial concerns, legal issues, physical health, mental health, alcohol and drug problems, marital problems, illness of family members, or childcare problems, etc. The support was provided in the form of benefits, welfare, or non-welfare. This program aids eligible individuals 24 hours a day, seven day a week.

Improving mental health care

Improving mental health care: The Company implemented the “5 Happiness Project” to enhance the New Normal Work Life and to enhance understanding of their own rights, including employee care and benefits for employees and retired employees. The key projects in “5 Happiness Project” are:

Ensuring education for all

Ensuring education for all: The Company provided knowledge and awareness on human rights for employees through the Human Rights E-Learning course in the “Thaioil Academy Application.” For other stakeholders, the Company consistently organized workshops and activities to enhance the understanding and knowledge of human rights, for example, the human rights lecture in Supplier Seminar 2023 at the Thaioil Conference Hall in Sriracha, Chonburi. Also, The Company raises awareness of human rights through the acknowledgment of the Thaioil Group’s Supplier Code of Conduct.

Collaborated with PTT Group to organize the PTT Group CG Day 2023 under the theme “Good to Great: CG Empowering for the Future”

Collaborated with PTT Group to organize the PTT Group CG Day 2023 under the theme “Good to Great: CG Empowering for the Future”. The event was held in a hybrid event to promote and empower the good corporate governance practices of the PTT Group, emphasizing employees at all levels within the PTT Group to comply with the principles of good corporate governance in their work. The event attendees included the Board of Directors, management, employees, and business partner representatives. In addition, regulatory bod representatives, such as from the National Anti-Corruption Commission (NACC), were also invited. The event attracted over 400 attendees, including partners, clients, and employees who were joined the live streaming on the event’s website.

Conducted the 2023 GRC Culture Survey

Conducted the 2023 GRC Culture Survey to assess the organizational culture in terms of integration of good corporate governance, risk management, internal control, and the compliance with laws, regulations, and requirements (GRC). The survey results will be analysed to develop plans for promoting and enhancing corporate governance effectiveness in the future.

Communicated the principles of good corporate governance

Communicated the principles of good corporate governance, business ethics, and anti-corruption through internal communication channels throughout the year, such as the GRC Corner column in the Akanee magazine (a corporate internal magazine) and the GRC Newsletter, with a total of 12 times.

Communicated the No Gift Policy

Communicated the No Gift Policy to all employees through internal communication channels in various forms, such as video clips and E-newsletters. The “Request letter to prevent giving gifts to executives and employees of Thaioil Group” was sent to the suppliers, customers, financial institutions, and other business partners to avoid and prevent any cause that may lead to actions that violate Anti-Fraud Policy.

Improved electronic learning media (E-learning)

Improved electronic learning media (E-learning), including CG Orientation E-learning for new employees, covering the principles of good corporate governance, ethical business conduct, and anti-corruption. Also, Anti-Fraud E-learning for current employees was improved to provide knowledge on the origins of fraud and preventive measures to avoid fraud within the Company.

Conducted activities to provide knowledge

Conducted activities to provide knowledge and promote transparent and fair work practices throughout the year of 2023. For instance, the Company organized the Compliance & CG Talk activity on the topic of Anti-Money Laundering and Countering the Financing of Terrorism, lectured by experienced legal professionals from the Anti-Money Laundering Office. The Law Focus activity was organized with the topic of Anti-Money Laundering and Combating the Financing of Terrorism, lectured by executives from the Export-Import Bank of Thailand (EXIM Bank). The GRC in Action event was held at the CEO Townhall during the 2nd and 4th quarters. The Good to Great CG Contest was organized to share the working approach that can promote CG practices in their own way.

SAP ECC

Thaioil Group upgraded the software and hardware of the current Enterprise Resource Planning (ERP) system, or called SAP ECC, to ensure its function remained efficient. This upgrade is a part of the preparedness before transitioning to the ERP system to SAP S/4 HANA in 2027.

Prominence Enhancement

Thaioil Group enhanced a data collection system for the sale of products. The system gathers information from different perspectives, such as types of suppliers, prices, sale volume, sale periods, and payment methods. These data will be used to analyze pricing structure and support the decision-making in the sale approaches for each supplier. This will increase the chances for the Company to generate higher profits in different and fluctuating markets. 

Predictive Maintenance Analytics

Thaioil Group developed a data processing system to maintain the key machinery and equipment in the production process. The process will predict the likelihood of damage to the machines and provide prevention in advance. This helps avoid unplanned shutdowns and maintenance while reducing the risks associated with such damages.  

JSKem Pte Ltd & TOPNEXT India Private Limited

JSKem Pte Ltd & TOPNEXT India Private Limited

www.jskem.com.sg 

TOPNEXT acquired a 60% stake in JSKEM to expand its business in the distribution of solvents and chemicals in Singapore and India. TOPNEXT India Private Limited (TX India) was established in 2021.

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PT. Tirta Surya Raya

PT. Tirta Surya Raya

TOPNEXT (TX) has acquired a 67% stake in PT. Tirta Surya Raya, which was established in 2019 as a distributor of solvents and chemicals in Indonesia. The company is headquartered in Tangerang, Indonesia.

TOP Solvent Myanmar

TOP Solvent Myanmar

In 2017, TOP Solvent Myanmar  (TSMM) established a representative office in Myanmar under the name TOP Solvent Company Limited (Myanmar Representative Office). This office serves as the company’s representative for liaising with customers and business partners to distribute petroleum and chemical products, as well as other petroleum-related products.

TOP Solvent (Vietnam) Limited Liability

TOP Solvent (Vietnam) Limited Liability

TOP Solvent (Vietnam) Limited (TSV) was founded on November 2, 2009, TOP Solvent (Vietnam) is 100 percent owned by TOPNEXT International Co., Ltd. and marks Thaioil’s first overseas investment. The company provides a diverse range of solvents and chemicals for industries including paint, coatings, thinners, adhesives, binders, electronic printing inks, cleaning agents, vegetable oil extraction, and the chemical industry. It operates warehouses in the Go Dau Industrial Zone in Dong Nai Province (southern Vietnam) and Hai Phong (northern Vietnam).

Sak Chaisidhi Company Limited

Sak Chaisidhi Company Limited

Sak Chaisidhi Company Limited (SAKC) is primarily owned by TOPNEXT International Co., Ltd., which is located in the Map Ta Phut Industrial Estate in Rayong Province. The company specializes in manufacturing high-quality hydrocarbon solvents for a range of industries, including paint, automotive rubber, adhesives, vegetable oils, foam, plastics, and copper mining.