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Environmental
Impact Management

Challenges, Risks,

and Impacts

Thaioil Group conducts a comprehensive review of the environmental risks and impacts on an annual basis. In 2023, the Company recognized several challenges arising from environmental factors, such as the intensive actions of climate change, including the establishment of Carbon Neutrality and Net Zero targets.

Air quality management, such as control of Volatile Organic Compounds (VOCs) emissions, compliance with environmental regulations, circular economy, preparation for drought situations, and biodiversity conservation. In addition to these challenges, Thaioil Group recognizes the impact of the business operations on local communities, which requires proper management to mitigate the risks. Consequently, Thaioil Group has elevated the management approach in construction projects and has implemented control over the production process to prevent adverse effects on the community’s lifestyle and well-being. To achieve this, the Company has adopted the sustainability or Environment, Social, and Governance (ESG) management process to enhance work process and procedures that can reduce environmental impacts on communities and other stakeholders. This approach will be applied to all sizes of Thaioil Group’s construction projects. Likewise, the Company maintains strict control over the current production process to ensure normal operating conditions. Moreover, Thaioil Group places significant emphasis on inspecting regulatory compliance and preparing for emergencies that may arise and impact the environment.

Commitments and Targets

Thaioil Group strives to enhance the Company’s environmental management system in alignment with global trends, aiming to drive towards sustainable business growth while maintaining environmental awareness. According to the Environment, Social, and Governance (ESG) practices, the Company aims to reduce environmental impacts and create long-term business opportunities in collaboration with the community as specified in the policy

In addition, the Company has adopted an environmental management system in accordance with national and international standards to oversee and continually improve the management system and environmental master plan. In 2023, Thaioil Group elevated the policy commitment in Thaioil and Subsidiaries’ Quality, Security, Safety, Occupational Health, Environment, and Energy Management Policy through the approval of the Board of Directors to consistently drive the most efficient environmental management practices.

Targets

Complaints on environmental incidents

2023 Target

0

Case

2030 Long-term Target

0

Case

Non-compliance with relevant environmental laws and regulations

2023 Target

0

Case

2030 Long-term Target

0

Case

Major non-compliance with ISO 14001: 2015 standard

2023 Target

0

Case

2030 Long-term Target

0

Case

Significant oil and chemical spills into the environment

2023 Target

0

Case of significant spill

2030 Long-term Target

0

Case of significant spill

Compliance with excellent environmental governance standards in petroleum and petrochemical refineries

2023 Target

100

Percentage

2030 Long-term Target

100

Percentage

Management Approach

and Performance

Management Approach

Thaioil Group takes responsibility in the three key areas, namely Environment, Social, and Governance (ESG) while the principle of the circular economy is adopted to drive the business forward. The environmental strategies and master plan in the short, medium, and long term have been established to grow the business while being environmentally conscious and minimize the environmental impacts throughout the production chain.

Long-term Strategy

Thaioil Group is committed to promoting business growth while maintaining environmental consciousness and creating long-term business opportunities. This commitment comprises  two key strategies, namely the Net Zero GHG Emissions strategy and the Circular Economy strategy, both of which are supported by a well-defined governance structure.

Short to Medium-term Strategy

Thaioil Group is committed to minimizing environmental impacts at their sources and promoting ESG practices that are resilient to changes and aligned with global trends and the long-term business strategy. The Company has aligned the strategic management plan towards O2Bx (Operation Excellence to Business Excellence). In addition, the “Refinery in The City” model has been adopted in the management approach in pursuit of business excellence, focusing on three main areas on environmental management, social management, and governance compliance. To efficiently achieve these business excellences, Thaioil Group has implemented a management approach known as the “CARE Concept”, which is outlined as follows: 

CARE Concept

C

C – Control Right

Controlling environmental impacts and maintaining compliance with the regulatory requirement. The environmental management has been elevated through Permit to Work-Job Safety Environmental Analysis (JSEA) to prevent and minimize potential impacts on communities that may be affected by the Company’s production, construction, and transportation activities. The Company has also proactively prepared to mitigate impacts from the Clean Fuel Project (CFP), which is in the process of commissioning and start-up. This aims to maintain the trust of the surrounding community through active community engagement.

A

A – Awareness & Communication Right:

Raising awareness, engaging in communication with stakeholders, and building trust in Thaioil Group’s ability to prevent and mitigate the impacts of business operations. This is outlined in the Company’s Sustainability Management Policy and Corporate Social Responsibility Policy. This aims to enhance the quality of life for communities and society, contributing to sustainable growth.

R

R – Recycling Right

Recycling Right: Managing natural resources efficiency through the 3Rs strategy (Reduce, Reuse, Recycle) and the circular economy principle, in order to support the Sustainable Development Goals.

E

E – Eco-Society Right

Eco-Society Right: Creating value to society through the “Partner for Life CSR” concept to instill volunteerism and corporate social responsibility among employees. Also, the Company promotes a “Volunteer Culture” and encourages employees to design initiatives for communities towards “Share Value with Society”.

Becoming The Partner
For Life Through

A Trusted Partner for Life

Thaioil Group operates business with transparency and fairness, prioritizing the appropriate return of benefits to all groups of stakeholders as well as emphasizing environmental protection and community well-being. To achieve this goal, the Company implements a comprehensive environmental management plan that considers both internal and external environmental factors (Environmental Outlook) to align with the needs and expectations of the stakeholders. This involves communities, government agencies, executives, and employees who have expertise in environmental topics, as well as environmental regulations, laws, and global megatrends, etc. All factors are analyzed to identify business opportunities and enhance a five-year environmental plan referred to as the “Environmental Master Plan”. This plan is used as the key framework to drive sustainability in environmental management and ensure effective environmental management to achieve the environmental targets.

Thaioil Group enhances employees’ knowledge on environmental management in alignment with the sustainability and environmental policies and practices. For instance, the Company organized training sessions on carbon taxes, Net Zero GHG Emissions, Carbon Footprint Organization and Carbon Footprint Products. In addition, statutory training was also conducted for environmental managers and practitioners in pollution treatment systems, which was attended by 34 attendants. The Company is committed to providing training on an annual basis to enhance employees’ knowledge of environmental management for continuous efficiency.

Furthermore, Thaioil Group governs and develops environmental management systems according to accepted standards at the national and international levels. For example, ISO 14001 (the standard on environmental management excellence), ISO 26000 (the standard on corporate social responsibility) under the CSR-DIW project, PTT Group’s Operational Excellence Management System (OEMS), the best practices in biodiversity management, the Global Reporting Initiative (GRI), and the best practices identified from the Dow Jones Sustainability Indices (DJSI) assessment. To improve and develop environmental management systems, these standards are adopted in risk assessments, environmental prevention and mitigation measures, operational controls, monitoring, inspection, and reporting processes, as well as the execution of the proactive and reactive environmental indicators. The Company has also improved and developed the environmental management system throughout the production process to end products across the value chain, covering operations in various conditions as follows:

Thaioil Group conducts risk assessments on environmental issues and implements preventive measures to mitigate environmental impacts at the sources on an annual basis or when significant changes occur. Moreover, the Company has been steadily enhancing production efficiency in accordance with the Environmental Master Plan which serves as the operational framework comprised the following topics:

  • Governance Structure
  • Technical Procedures
  • Climate Strategy
  • Water Resource Management
  • Eco-efficiency
  • Biodiversity
  • Supplier and Contractor Program
  • Environmental Audit
  • Management Information Solutions

For the refinery unit expansion project, Thaioil Group applies the environmental standard specification, which encompasses the requirements, laws, best practices, and fair stakeholder perspectives, based on the environmental principles. This aims to establish the operating framework for the Green Construction Project. The framework remains continuously responsive to the requirements and expectations of relevant stakeholders.

Highlighted Projects

In 2023, Thaioil Group implemented additional projects as follows: