Climate Change
Management
Challenges, Risks,
and Impacts
At present, climate change is a significant global issue garnering substantial attention from the public sector, private sector, and general public.
Thailand has accelerated its target for Net Zero Greenhouse Gas (GHG) Emissions from 2065 to 2050, as outlined in its third Nationally Determined Contribution (NDC 3.0). This commitment was declared at the 30th Conference of the Parties (COP), leading to more concrete GHG management across all sectors. This involves the introduction of laws, measures, and economic mechanisms to push for national targets, such as the National Climate Change Act, carbon taxes, and the Emission Trading Scheme (ETS). Simultaneously, the expectations and consumption behaviors of various stakeholders, particularly the general public, are shifting towards supporting greener energy and more environmentally friendly products. These factors present both opportunities and risks for Thaioil Group’s business operations, impacting costs, product sales, and corporate reputation. In response to these challenges, Thaioil Group has conducted risk and opportunity assessments to establish long-term targets and strategies that maximize operational effectiveness.
(Low Carbon and New Energy) The Board of Directors and executives of Thaioil Group recognize the significance of climate change as well as the various risks and opportunities arising from the aforementioned shifts in business direction Consequently, Thaioil Group has implemented the “2S1P” strategic framework to drive the organization toward stable and sustainable long-term growth. This strategy focuses on strengthening the current core business and maximizing the utility of existing assets (Strengthen the Core: S1), which includes enhancing energy efficiency within current production processes. Concurrently, the Group is seeking investment opportunities in new businesses that offer strong returns and are environmentally friendly (Sustaining the Future: S2), with a specific emphasis on low-carbon and new energy sectors.
Furthermore, the Board of Directors has approved a review of the goals and operational guidelines to achieve Thaioil Group’s Net Zero target. The Company is prepared to accelerate its Net Zero target to 2050 (Accelerated Net Zero Target), provided there is support for economically viable technologies that enhance business competitiveness, in alignment with the adjustment of the national Net Zero target. Additionally, the Board has approved an organizational restructuring by establishing a Corporate Sustainability Function to directly oversee sustainability strategies and management.
Targets
GHG emission reductions
(Scope 1 and 2)
Target 2025
16,600
Ton of carbon dioxide equivalents (tCO2e)
Long-term Target
Reduce 15% of GHG emission by 2035
compared with the base year in 2029
GHG emissions
(Scope 1 and 2)
Target 2025
Less than 3,570,000
Ton of carbon dioxide equivalents (tCO2e)
Long-term Target
Net Zero GHG Emissions
by 2060
Accelerate Net Zero Target
to 2050 (Accelerated Net Zero Target)
with conditions of technological maturity, economic viability and business competitiveness
GHG emissions
(Scope 1)
Target 2025
Less than 3,510,000
Ton of carbon dioxide equivalents (tCO2e)
GHG emissions (Scope 2)
Target 2025
Less than 60,000
Ton of carbon dioxide equivalents (tCO2e)
GHG emissions (Scope 3)
Target 2025
Less than 50,000,000
Ton of carbon dioxide equivalents (tCO2e)
Thaioil Group's Net Zero GHG Emissions Targets
The company-wide target covers all relevant segments, accounting for 100% of companies under operational control or more than 96% of total sale revenue.
Remark : * The first year of full commercial operation of the CFP project
Management Approach
and Performance
The Board of Directors plays a key role in reviewing the corporate strategy to ensure alignment with climate change scenarios. Performance is monitored annually through sustainability-related Corporate Key Performance Indicators (KPIs), including the Energy Intensity Index and the Thaioil Group’s Scope 1 and Scope 2 Greenhouse Gas (GHG) Absolute Target. Furthermore, the Board monitors the assessment of future climate change impacts on business operations every quarter through Corporate Key Risk Indicators (KRIs), specifically the GHG Emission Intensity.
Furthermore, during the 2025 annual strategy review, the Board of Directors approved a revision of the Thaioil Group’s Net Zero GHG Emissions Target and Pathway. This includes adjusting the base year from 2026 to 2029. Additionally, the Group is prepared to accelerate its Net Zero target to 2050, provided there is support for economically viable technologies that enhance business competitiveness, in alignment with the adjustment of the national Net Zero target.
The Board of Directors has assigned the Corporate Governance and Sustainability Committee (Board level) to oversee and monitor the performance of sustainability initiatives, including the management of topics related to climate change at least twice a year. The Sustainable Development Steering Committee (Management level), chaired by the Chief Executive Officer and President, is also assigned to drive the implementation, and monitor the progress on a quarterly basis, while the executives of Thaioil Group take responsibility for the management in line with the established strategy.
In 2025, Thaioil Group appointed a taskforce (executive level) and a workstream (department manager and operational levels), collectively known as the “Thaioil Group Net Zero Taskforce and Workstream,” to drive the organization toward net-zero greenhouse gas emissions. This structure is divided into seven specialized workstreams, each comprising relevant executives, department managers, and staff. These groups are responsible for setting targets, monitoring progress, and ensuring that all operations to drive Thaioil Group’s Net Zero goals proceed according to the established roadmap. The structure of “Thaioil Group Net Zero Taskforce and Workstream” is as follows:
Thaioil Group’s climate governance can be summarized as the followings:
Level | Roles and Accountabilities | Meeting Frequency |
|---|---|---|
The Board of Directors | • Approve the review of corporate strategies and sustainability operational plans. • Oversee and evaluate sustainability performance through sustainability-related Corporate Key Performance Indicators (KPIs). • Oversee and evaluate the impacts of climate change on future business operations through Corporate Key Risk Indicators (KRIs). | Regularly throughout the year |
The Corporate Governance and Sustainability Committee (Board level) | • Define and review sustainability strategy, plan, and goals, which include climate related issues. • Support, provide guidance, and promote operations to ensure alignment with the sustainable development policy. • Encourage the Board of Directors, executives, and employees to adhere to sustainable development guidelines to foster a corporate culture of sustainability, including participating in sustainability assessments or rankings. • Oversee, monitor, and evaluate sustainable development performance. | At least twice a year |
The Sustainable Development Steering Committee
(Executive level) | • Define the direction, policies, operational frameworks, material issues, sustainability strategies, corporate key performance indicators (KPIs), and short-term and long-term goals, as well as create long-term value for stakeholders. • Drive, review, and monitor the progress of short-term and long-term sustainable development plans, while designating responsible parties and KPIs for relevant departments. • Provide consultation, opinions, and advice, as well as promoting and support appropriate resources and personnel. • Encourage and support various departments to systematically and continuously integrate material issues into their business strategic plans. • Drive relevant departments to identify risk issues and business opportunities, as well as develop risk management plans and operational plans to address significant and necessary opportunities. • Support and promote sustainability awareness and culture among employees and continuously support related projects and activities to achieve concrete results. • Appoint taskforces to be responsible for the implementation and advancement of significant or urgent sustainable development issues. | Quarterly |
Thaioil Group Net Zero Taskforce (Executive level) | • Formulate and review strategies, targets, operational directions, and indicators, as well as monitor the progress of greenhouse gas emission performance at the corporate level and across the Thaioil Group. • Drive, monitor, support, control, and evaluate operations to ensure compliance with laws (Advocacy), as well as alignment with Thaioil Group’s Net Zero GHG emissions strategy and targets. • Select appropriate projects or mechanisms to drive operational plans into practice through reduction, offsetting, and controlling greenhouse gas emissions to achieve established targets. • Provide consultation, recommendations, and pathways, and drive projects related to carbon reduction and low-carbon technologies, including new business opportunities. • Communicate operational results in accordance with strategies and guidelines, as well as facilitate the exchange of knowledge and experiences. | Quarterly
|
Thaioil Group Net Zero Workstream
(Department manager and Operational level)
| • Drive the operations of each workstream to ensure alignment with Thaioil Group’s Net Zero GHG emissions strategy and operational guidelines. • Study, select, develop action plans, and implement appropriate projects or mechanisms for reduction, offsetting, and controlling GHG emissions to meet short, medium, and long-term targets. • Provide data and recommendations and collaborate in preparing summary reports on GHG emission reductions, studies of carbon reduction technologies, and new business opportunities, including participating in and monitoring GHG reduction efforts at both the corporate and Group levels. • Formulate operational recommendations or guidelines (Advocacy) in collaboration with relevant internal and external stakeholders to foster cooperation and support for projects and mechanisms aimed at achieving Net Zero, while maintaining business competitiveness and creating development opportunities. • Exchange knowledge and experiences and seek collaborations in GHG control and reduction to develop personnel skills and establish partnerships with relevant internal and external entities. • Review GHG emission databases and reports at the corporate and Group levels to provide supporting data for the review of strategies and operational plans. |
Thaioil Group has defined the Net Zero GHG Emissions Strategy, called the 3Cs strategies with the details as follows:
Thaioil Group has evaluated the resilience of the Net Zero GHG Emissions Strategy through scenario analysis, as well as the business impacts from each climate change scenario. The climate-related risks and opportunities were assessed in 2028, 2035, and 2050. According to the International Financial Reporting Standards S2 (IFRS S2). These standards incorporate the framework of the Task Force on Climate-related Financial Disclosures (TCFD) for evaluating risks and opportunities. The analysis was conducted in 2 scenarios compared with the baseline scenario as described as follows:
The Transition Scenario
Thaioil Group evaluates risks and opportunities across four key categories: Regulatory Risk involving government laws and regulations; Technological Risk, particularly where rapid advancements in alternative energy substitute petroleum; Market Risk, which encompasses shifts in consumer and market behaviours toward low-carbon products (Downstream) as well as crude oil price volatility affecting revenue stability—though this transition also presents opportunities for new business investments and products (Upstream); and Reputational Risk, arising if the Company fails to meet stakeholder expectations regarding timely climate action. These assessments utilize scenario modelling for the years 2028, 2035, and 2050, covering the entire value chain from upstream to production and downstream through two distinct scenarios as follows:
NGFS-NDC or Network for Greening the Financial System-Nationally Determined Contributions
is a climate action scenario under the current existing policies of countries worldwide, reflecting current policy directions and climate change action plans consistent with the Nationally Determined Contributions (NDC) established by each country, which remain “insufficient” to control the global temperature increase to within 5°C or 2°C under the Paris Agreement.
NGFS-NZE or Network for Greening the Financial System-Net Zero Emissions
is a climate action scenario that achieves net zero greenhouse gas emissions by 2050, reflecting a pathway that successfully maintains and limits the global average temperature rise to “not exceeding 1.5°C” through an energy transition toward a low-carbon society and in accordance with the net zero greenhouse gas emissions commitments under the Paris Agreement.
Based on the assessment of the four risk and opportunity factors mentioned above, it was found that Regulatory Risk is a key risk factor with a tendency to substantially impact Thaioil Group’s future business operations, particularly the economic mechanisms to be implemented in the future, such as the Emission Trading Scheme (ETS) as specified in the draft Climate Change Act or Global Warming Act.
Regulatory Risk
Regulatory Risk
Risk and Opportunity
Besides, carbon pricing can pose a risk in upstream operation. Particularly, in the case that the origin country of crude oil suppliers mandates the carbon price. This could result in an increase of the Company’s raw material costs. In downstream operations, likewise, the risks of carbon pricing can be posed by the execution of the EU’s Carbon Boarder Adjustment Mechanism (CBAM). This may impact the prices of some petrochemical products of the Company that is exported in the European market.
With these situations, the oil industry business might face challenges in adaptation. Also, the Company may encounter the risks on higher costs and long-term shift towards clean energy. However, the government initiatives present opportunities for the Thaioil Group to formulate its business strategy. For instance, if the government advocates or offers incentives for investing in clean energy ventures, such as hydrogen production or sustainable aviation fuel, it could facilitate Thaioil Group’s adaptation to change its business landscape.
Mitigation Measures
Closely monitoring the progress of regulatory enforcement.
Conducting Sensitivity Analysis for Carbon Pricing.
Joining membership of the greenhouse gas-related associations such as Thailand Carbon Neutral Network (TCNN) and Thailand Business Council for Sustainable Development (TBCSD) to monitor the regulatory enforcements and directions for the private sector.
Monitoring the impacts of carbon prices in case of transmission from crude oil suppliers and conducting appropriate sourcing strategies.
Thailand’s commitment to GHG emission reduction at the Conference of the Parties to the United Nations Framework Convention on Climate Change is the factor that may affect current business operations and future investments. This may pose risks for production cost of Thaioil Group once new laws and regulations are enforced to drive the country towards net zero targets. For example, the Draft of Climate Change Act or Global Warming Act requires GHG emissions disclosure and actions toward national GHG emissions reduction target. Meanwhile, economic mechanisms, such as emission trading schemes, may be enforced by the government after 2030 for greenhouse gas emissions from the Company’s production processes.
Besides, carbon pricing can pose a risk in upstream operation. Particularly, in the case that the country of origin of crude oil suppliers mandates the carbon price. This could result in an increase of the Company’s raw material costs. In downstream operations, the risks of carbon pricing can be posed by the execution of the EU’s Carbon Boarder Adjustment Mechanism (CBAM). This may impact on the prices of some petrochemical products of the Company that is exported in the European market.
With these situations, the oil industry business might face challenges in adaptation. Also, the Company may encounter the risks on higher costs and long-term shift towards clean energy. However, the government initiatives present opportunities for the Thaioil Group to formulate its business strategy. For instance, if the government advocates or offers incentives for investing in clean energy ventures, such as hydrogen production or sustainable aviation fuel, it could facilitate Thaioil Group’s adaptation to change its business landscape.
Mitigation Measures
- Seeking investment opportunities in low-carbon and new energy businesses (Low Carbon and New Energy) that offer good returns and are environmentally friendly to reduce operational volatility and reliance on petroleum businesses, by adjusting the investment portfolio to align with future trends according to the growth strategy for a sustainable future (Sustaining the Future: S2).
- Closely monitoring the progress of laws and regulations and conduct sensitivity analysis for carbon pricing to assess financial impacts.
- Monitoring impacts from carbon pricing passed through from crude oil suppliers and determining appropriate sourcing strategies.
- Reviewing and implementing the Net Zero Greenhouse Gas Emissions pathway to achieve the net zero emissions target.
- Reducing greenhouse gas emissions through the implementation of energy efficiency projects in production processes.
- Studying, selecting, and driving projects to increase the appropriate proportion of clean and renewable energy usage within Thaioil Group, including projects for Carbon Capture, Utilization, and Storage (CCUS) technologies, as well as studying related impacts when integrating CCUS technology into production units.
- Join as a member or partner with greenhouse gas-related networks and associations, such as the Federation of Thai Industries, the Department of Industrial Works, the Pollution Control Department, the Thailand Carbon Neutral Network (TCNN), and the Thailand Business Council for Sustainable Development (TBCSD), to monitor progress, provide feedback on government regulations, and propose collaboration pathways between the public and private sectors to define adaptation guidelines for the Thai private sector.
Result of
Financial Impact Assessment
Key Risks
- Impact from carbon pricing based on carbon dioxide equivalent emissions from the Company’s production processes, by assessing scenarios in which Thailand implements an Emission Trading Scheme and refers to the allowance allocation based on Thaioil Group’s greenhouse gas emissions once the Clean Fuel Project (CFP) is in full commercial operation, referencing carbon prices for the years 2028 – 2035 – 2050 as specified in two scenarios: NGFS-NDC and NGFS-NZE.
- Impact of declining demands on the Company’s products from the shift to use alternative energy (Downstream). The demand for oil products in ASEAN is referred to the IEA World Energy Outlook 2021.
- Impact of carbon pricing from the increasing crude oil price by crude oil suppliers (Upstream).The scenario analysis has been conducted in the case that the suppliers have an impact from carbon taxes and consequently affect the Company’s cost at 100%.
The Physical Scenario
Thaioil Group has assessed physical risks, covering both acute impacts—such as storms that may affect crude oil transportation for production processes (Upstream), marine product transportation (Downstream), and storm wind speeds passing through operational areas that could damage machinery and equipment in production processes (Own operations)—and chronic impacts. These chronic impacts include flooding from rising sea levels that could damage production machinery and equipment (Own Operations), as well as water scarcity for production which may affect water procurement for manufacturing processes (Own Operations) due to rising global temperatures. The scenario analysis is conducted for the years 2028 – 2035 – 2050, covering the entire value chain from upstream to production processes, including new projects (New Operations) such as the Clean Fuel Project (CFP), utilizing the Shared Socioeconomic Pathways (SSPs) recognized by the Intergovernmental Panel on Climate Change (IPCC) across two scenarios, as follows:
SSP 1 – 2.6 or Shared Socioeconomic Pathway 1 – 2.6
SSP 5 – 8.5 or Shared Socioeconomic Pathway 5 – 8.5
Based on the results of the analysis of risk and opportunity factors, regarding both acute impacts and chronic impacts, it was found that water shortage for production (Water Scarcity) is a key risk factor that may affect the business continuity of Thaioil Group in the future. In the event that the Company is unable to procure sufficient water to meet the demands of its production processes, it may impact water sourcing for manufacturing and investment in expansion projects, such as the Clean Fuel Project (CFP) and other future projects.
Water Scarcity Risk
Water Scarcity
Risk
Mitigation Measures
To balance between business interests and stakeholders’ expectations, Thaioil Group has agreed with government agencies to give importance to the community as the first priority during water shortages. This is to ensure the surrounding communities have adequate water irrigation for agriculture and consumption for their daily needs before any allocation to Thaioil Group. Furthermore, Thaioil Group has established a “Long-term Water Supply Strategy 2023–2033” to ensure water security and reduce the risk of water scarcity that may impact both business operations and future expansion projects. Thaioil Group’s water management is summarized as follows:
At the present, Thaioil Group uses two types of water. The seawater is processed to freshwater through the Thermal Desalination unit. The raw water is sourced from two different water distributors namely the Bang Phra Reservoir, which is operated by the Royal Irrigation Department, and the Nong Kho Reservoir, which is operated by the Eastern Water Resources Development and Management Public Company Limited. Both water distributors operate integrated water systems alongside Thaioil Group through aligning practices with government policies or the local context of shared water use in the area. This is to ensure adequate water supply within Thaioil Group’s production processes, such as the cooling tower system, demineralization for steam production, and other production processes. The Company consistently improves and monitors water quality to exceed the required standards before discharging into the environment. To further minimize the impacts on the ecosystem, the circular economy and 3Rs (Reduce, Reuse, Recycle) principles are adopted in water management to maximize the utilization efficiency.
There are ongoing feasibility study projects under the “Long-term Water Supply Strategy 2023–2033” as follows:
1. A study project on installing additional desalination units from six existing units. This project aims to increase the proportion of water consumption from seawater, which is considered an unlimited natural resource, to replace freshwater consumption, which is considered a limited natural resource.
2. A study project on the recycled wastewater from the water treatment plant.
3. A study project on reverse osmosis system for recycling wastewater.
4. A study project on Pattaya wastewater recycle to reuse wastewater in the urban communities.
Moreover, under construction project is as follows:
A raw water utilization project from the private pond
The most significant physical risk of Thaioil Group is water scarcity in the production process and investments in expansion projects, such as the Clean Fuel Project (CFP) and other future projects. The water scarcity risk is classified as chronic impact because it is caused by the climate change that accelerate the water shortage and the economic expansion that increase water consumption demands, particularly in the Eastern Economic Corridor (EEC), located in Eastern Region of Thailand. Thaioil Group recognizes the importance of being prepared to manage such risks to its operations, production, environment, and communities.
Thaioil Group has monitored and predicted water scarcity risks through water risk assessment, scenario analysis, and sensitivity analysis in situations where there are water shortages at various proportions within the production processes. The Enterprise Risk team regularly works together with Thaioil Group Water Management Working Committee to monitor such risks. The WRI Aqueduct Water Tools, an internationally recognized tool developed by the World Resource Institute, were adopted in the working processes. The Company also built a water management network with both government and non-government agencies, such as the PTT Group Water Committee in the Eastern region, Keyman Water War Room, and the Institute of Water and Environment for Sustainability (established under the Federation of Thai Industries), to create comprehensive water management and determine proactive measures. This helps reduce the potential risks in the production process and community as well as managing the risks in a timely manner.
Mitigation Measures
To balance between business interests and stakeholders’ expectations, Thaioil Group has agreed with government agencies to give importance to the community as the first priority during water shortages. This is to ensure the surrounding communities have adequate water irrigation for agriculture and consumption for their daily needs before any allocation to Thaioil Group. Furthermore, Thaioil Group has established a “Long-term Water Supply Strategy 2025–2029” to ensure water security and reduce the risk of water scarcity that may impact both business operations and future expansion projects. Thaioil Group’s water management is summarized as follows:
At the present, Thaioil Group uses two types of water. The seawater is processed to freshwater through the Thermal Desalination unit. The raw water is sourced from the Bang Phra Reservoir, which is operated by the Royal Irrigation Department. The water distributor operates integrated water systems alongside Thaioil Group through aligning practices with government policies or the local context of shared water use in the area. This is to ensure adequate water supply within Thaioil Group’s production processes, such as the cooling tower system, demineralization for steam production, and other production processes. The Company consistently improves and monitors water quality to exceed the required standards before discharging into the environment. To further minimize the impacts on the ecosystem, the circular economy and 3Rs (Reduce, Reuse, Recycle) principles are adopted in water management to maximize the utilization efficiency.
There are ongoing feasibility study projects under the “Long-term Water Supply Strategy 2025–2029” as follows:
- A study project on Pattaya wastewater recycle to reuse wastewater in the urban communities.
Moreover, under construction project is as follows:
- A raw water utilization project from the private pond, with high potential and no impact on the water usage of communities and farmers, aimed at maximizing resource efficiency and increasing diversity in water supply management to mitigate the risk of raw water shortages. The Company has already entered into raw water purchase agreements with private entities. Currently, the raw water transmission system and the Reverse Osmosis (RO) quality control system are under construction.
Result of
Financial Impact Assessment
Key Risk
- Impact of water shortage (Water Scarcity): In case the government sector reduces water supply to the Company by 10%, the Company must align its investments with the Long-term Water Supply Strategy 2025-2029. The Company is required to consider increasing the volume of freshwater from private sources and freshwater production from seawater by the Thermal Desalination Unit. Additionally, the Company needs to prepare the water reservation plan in appropriate areas to provide adequate water in the production process. However, these measures could increase operation costs.
Internal Carbon Pricing : ICP
Thaioil Group has adopted Internal Carbon Pricing (ICP) as a tool to assess the impact of carbon pricing on the investment returns of projects that result in an increase or decrease in greenhouse gas emissions, covering both direct emissions (Scope 1) and indirect emissions (Scope 2), with two primary objectives as follows:
- To drive investment in low-carbon businesses and new energy, as well as production process improvements to drive energy efficiency, by incorporating carbon price impacts as a factor in cost-benefit analysis. This includes assessing economic value to drive and seize opportunities for transitioning to low-carbon and new energy businesses, in order to support strategic long-term investment decisions and promote long-term greenhouse gas emission reductions.
- To support strategic formulation and financial planning by applying carbon pricing in the analysis of climate risks, covering both the assessment and management of risks and potential climate-related opportunities. This enables Thaioil Group to effectively develop strategic and financial management plans to accommodate and navigate changes in relevant laws and regulations, as well as carbon pricing mechanisms that may impact on the Group’s financial standing, such as the Climate Change Act, carbon taxes, and the Emission Trading Scheme (ETS).
Thaioil Group has applied Internal Carbon Pricing (ICP) to all types of investments within the Group, in accordance with the scope of the Thaioil Group Investment Management Procedure (TIM) and the Plant Change Procedure. This is used to support investment decisions for both existing assets and new asset investments where the Company holds an equity share of more than 50% in the project.
Currently, the Sustainable Development Steering Committee has established Internal Carbon Pricing (ICP) as a Shadow Price to evaluate and compare the impacts of increased investment costs. The pricing is benchmarked against the legal requirements of the investment countries (External Carbon Price) and aligned with the practices of other companies within the PTT Group (Peer Practice), as follows:
- Investment projects that contribute to the reduction of Thaioil Group’s greenhouse gas emissions:
- ICP is set at 20 USD per ton of carbon dioxide equivalent (tCO2e).
- Investment projects that result in an increase in Thaioil Group’s greenhouse gas emissions, categorized into 2 cases:
- Investment in countries without carbon laws (including Thailand) – ICP is set at 20 USD per ton of carbon dioxide equivalent (tCO2e).
- Investment in countries with existing carbon laws – The actual carbon price regulated by that specific country shall be applied.
2025
Performances
To achieve Thaioil Group’s net zero GHG emissions target, the Company strives to reduce the GHG emissions in the production process. The performance of Thaioil Group in 2025 is outlined as follows:
Reduction of Direct Greenhouse Gas Emissions (Scope 1)
(Scope 1)
Thaioil Group has implemented 23 Energy Efficiency Improvement (EE) projects. Key initiatives include the project to enhance power production efficiency by optimizing GHG utilization for Gas Turbines at TOP SPP Co., Ltd., and the project to optimize energy consumption by operating all Sulfur Recovery Units. These initiatives have resulted in a reduction of greenhouse gas emissions by more than 36,115 tons of carbon dioxide equivalent (tCO2e). Consequently, the Scope 1 and 2 GHG Emission Intensity stood at 0.0316tons per million barrels of crude oil equivalent (MBOE), which is lower than the set target of 0.0354 tons per MBOE.
In addition, Thaioil Group has implemented renewable energy projects to support the greenhouse gas reduction goals and the national emission reduction targets. This includes the expansion of the Cogeneration Power Plant in Si Racha District, Chonburi Province, operated by TOP SPP Co., Ltd., which increased its capacity from 239 megawatts to 354 megawatts.
Moreover, the aforementioned greenhouse gas management has successfully controlled methane emissions within the specified targets, as the majority of Thaioil Group’s methane emissions originate from the same sources as its greenhouse gas emissions.
For the year 2025, Thaioil Group has received the following certifications and awards for its greenhouse gas emission reductions:
- Climate Action Excellence Awards 2025: Thai Oil Public Company Limited received the Climate Action Excellence Award, the highest distinction within the Climate Change Awards, from the Climate Change Institute of the Federation of Thai Industries. This recognizes Thaioil Group as a leader in concrete, multidimensional climate management and its efforts in driving the expansion toward a Low Carbon Society.
- T-VER Project Extension and Capacity Expansion: TOP SPP Co., Ltd. Has extended and expanded the scope of its T-VER project at the Si Racha Cogeneration Power Plant from 239 MW to 354 MW. The project is currently processing additional carbon credit certifications. To date, it has achieved a cumulative certified carbon credit total of over 1,674,618 tCO2e (from 2020–2024).
- T-VER Registration for Mangrove Reforestation: Thai Oil Public Company Limited’s 2025 “Sustainable Mangrove Reforestation Project” in Trang Province, in collaboration with the Department of Marine and Coastal Resources, has been officially registered as a T-VER project by TGO. Covering 300 rai, the project is expected to sequester or reduce greenhouse gases by approximately 825 tCO2e per year.
- Carbon Footprint of Product (CFP) Certification: Thai Oil Public Company Limited, Thai Lube Base Public Company Limited, Thai Paraxylene Co., Ltd., and LABIX Co., Ltd. Received CFP certifications from TGO. Thaioil Group now has the CFP certifications that cover the entire petroleum and petrochemical businesses. The Company plans to expand CFP assessment to TOP SPP Co., Ltd. Products and progress toward Carbon Footprint for Organization (CFO) assessments across Scopes 1–3.
- Low Emission Support Scheme (LESS) Certification: Several entities within Thaioil Group, including Thai Oil Public Company Limited, Thai Lube Base Public Company Limited, Thai Paraxylene Company Limited, LABIX Company Limited, TOP SPP Company Limited, and Sak Chaisidhi Company Limited, received LESS certificates from TGO for self-implemented energy conservation initiatives. Key projects include the Catalyst replacement in Hydrocracking Unit 1 and the temperature optimization of Benzene at the Detal Plus unit. These initiatives reduced emissions by 2,748 tCO2 This marks a significant achievement, as the Company has now received LESS certifications across its core business segments: Petroleum, Petrochemical, and Power. Since 2016, Thaioil Group has achieved a total emission reduction of 74,429 tCO2e through energy conservation and related support activities.
- LESS Friendship Awards 2025: Thai Oil Public Company Limited received the Best Organization, Silver Level category, from TGO for its consistent role in reducing emissions through the LESS program and for promoting sustainable emission reduction and carbon sequestration practices among its partners.
- T-VER Awards 2025: TOP SPP Co., Ltd. Received the Best Carbon Credit Project Award in the Energy and Heat Production Efficiency Improvement category, recognizing it as an organization with the highest cumulative certified carbon credits of 1,674,618 tCO2
- Royal Forest Department Recognition Plaque 2025: Thai Oil Public Company Limited was honored for its contributions to forest resource restoration and development. This plaque from the Royal Forest Department recognizes the Group’s support in planting and restoring 8,300 rai of forest in Phrae Province for both conservation and carbon credit benefits.
The Thai Oil Group has set long-term, medium-term, and annual targets. The annual targets are evaluated based on the energy consumption of the business plan for each year. Through the implementation of energy efficiency improvement projects in the production process in 2025, the Thai Oil Group is expected to achieve its greenhouse gas emissions target for Scope 1, as outlined, as follows:
Reduction of Indirect Greenhouse Gas Emissions (Scope 2)
Thaioil Group has indirect greenhouse gas emissions (Scope 2) from the purchased electricity with the total of 34,477 tons carbon dioxide equivalents (tCO2e) or 0.93% of greenhouse gas emissions (Scope 1 and 2), which meets the target for greenhouse gas emissions under Scope 2, set at no more than 60,000 tons of carbon dioxide equivalents.
Furthermore, Thaioil Group has implemented energy efficiency improvement projects through the use of renewable energy. This includes the utilization of electricity generated from solar rooftop systems installed at the Sattiwat Wirun Building, the Thaioil Auditorium, Parking Building 2 (in front of the laboratory), and the Engineering Office Building.
Reduction of Indirect Greenhouse Gas Emissions (Scope 3)
In 2025, Thaioil Group’s Other Indirect Greenhouse Gas Emissions (Scope 3) within the value chain totaled 42,607,525 tons of carbon dioxide equivalent (tCO2e), successfully achieving the set target of less than 50,000,000 tCO e. This performance was driven by the following key initiatives as follow:
Supported green procurement of environmentally friendly products and services from suppliers, achieving 99%, which was higher than the 97% target. The Company planned to reduce greenhouse gas emissions, such as leasing electric vehicles (EVs) for use at the Bangkok and Si Racha offices and replacing conventional light bulbs with LEDs.
Studied and created opportunities to increase the value of waste disposed to landfill. The 3Rs method was adopted to control and reduce GHG emissions. In 2025, Thaioil Group successfully maintained zero waste to landfill performance against the set target.
Conducted product study and development projects to prepare for the International Sustainability and Carbon Certification (ISCC).
Sold low-carbon products to reduce downstream greenhouse gas emissions for consumers, including biodiesel, gasohol, bioethanol, Linear Alkyl Benzene (LAB), Heavy Alkyl Benzene (HAB), Keen cleaning products, clean rubber oil, low-sulfur fuel oil with a sulfur content not exceeding 0.5%, and benzene-free solvents.
In 2025, Thaioil Group had 5 environmentally friendly product categories, and 9 types of products that contribute to climate change mitigation in alignment with the objectives of the EU Taxonomy Framework as follows:
Green Product Category | Product Sold by Thaioil Group | Company | Sales Value (Million THB) | Sales Volume |
|---|---|---|---|---|
Bio-based product
| Ethanol from cassava
| Thaioil Ethanol Company Limited (TET) | 1,715.70 | 56.40 million litres
|
Biodegradable Product
| Linear Alkyl Benzene (LAB) | LABIX Company Limited (LABIX) | 6,312.73 | 133,922.19 tons |
Heavy Alkyl Benzene (HAB) | 80.94 | 2,380.53 tons
| ||
Compostable Product | Cleaning products (KEEEN)
| TOPNEXT International Company Limited (TX) | 0.60 | 3.40 tons
|
Products that reduce emissions released to the environment (Emission Reduction)
| Benzene-free solvents, including:
| TOPNEXT International Company Limited (TX) | ||
– TOPSol BF: Benzene Free | 57.97 | 1,349.19 tons | ||
– Xylene (Isomer): Low Ethylbenzene | 1,470.41 | 56,782.18 tons | ||
Products with lower GHG emissions than products of the same group in the market (Avoided GHG Emission Product)
| Cyclopentane CP80 and CP97, which are agents that can replace use of CFCs and HCFCs | TOPNEXT International Company Limited (TX) | 21.10 | 338.70 tons |
Gasohol
| Thai Oil Public Company Limited (TOP) | 39,084.60 | 1,439.73 million litres
| |
Biodiesel
| 117,821.28 | 4,326.50 million litres
|
Carbon Capture Utilization and Storage (CCUS) performance and progress
In 2022, Thaioil Group initiated a preliminary study to identify production units with the potential to implement CCS technology. This study included estimating the investment budget required for installing carbon dioxide (CO2) capture systems, as well as the associated transportation and storage infrastructure, to meet greenhouse gas reduction targets within specified timeframes. Furthermore, since 2022, Thaioil Group has maintained ongoing collaboration with companies in the PTT Group to conduct a feasibility study on CCS technology. This study benchmarks perspectives at both regional and international levels, covering not only the assessment of technology readiness but also evaluations of financial impacts, regulatory support from regional and international frameworks, as well as environmental impacts related to CCUS.
These conceptual studies assess the current and future demand for CCUS services across various sectors.
In 2023, The results of the study were compiled into a comprehensive report on the Eastern Thailand CCS Hub to inform relevant government agencies about policy frameworks and regulatory mechanisms that drive the implementation of CCS in Thailand.
In 2024, the Company, in collaboration with the PTT Group, engaged in discussions with various government agencies and organizations, including the Federation of Thai Industries, the Department of Industrial Works, the Pollution Control Department, and the Marine Department. These discussions aimed to align with Thailand’s climate change goals by promoting relevant policies, legislation, and support frameworks. Additionally, they focused on exploring investment opportunities, securing funding, and analyzing market demand.
In 2025, the Company signed two Memorandums of Understanding (MOUs) with PTT Group to conduct feasibility studies on the application of Carbon Capture, Utilization, and Storage (CCUS) technology and the business development and application of low-carbon hydrogen technology. Furthermore, the Company joined the PTT Group Net Zero Taskforce to collaboratively advance shared decarbonization goals. This collaboration focuses on enhancing energy efficiency and exploring strategic investments in renewable energy and carbon abatement infrastructure.”
In addition, based on a preliminary feasibility study analysis on CCS technology investments, referencing the Longship and Northern Lights projects in Norway, it was found that the capital expenditure (CAPEX) and operational expenditure (OPEX) for CCS technology across the entire supply chain (Levelized Cost) requires significant capital investment1. To enhance the feasibility of CCS project implementation, the Company plans to further investigate and evaluate cost-effective and efficient carbon capture technologies to reduce future costs. Additionally, the Company is focusing on developing CCS business models in collaboration with the PTT Group and other strategic partners, while also exploring and securing funding sources to ensure projects can be delivered within specified timelines and budget constraints. Future studies will focus on CCS technologies. Examples of currently viable capture technology using amine-based solvents absorption and onshore and offshore carbon transport pipelines. These efforts aim to equip the Company with critical insights to enable informed decision-making and strengthen confidence in the successful execution of CCS projects.
Remarks:
- Referencing the Longship and Northern Lights projects in Norway, it was found that the capital expenditure (CAPEX) and operational expenditure (OPEX) of the CCS project throughout the supply chain (Levelized Cost) are estimated to be more than USD 200 per ton of carbon dioxide equivalent (USD/tCO₂e) (https://bellona.org/publication/briefing-norways-longship-ccs-project)
