Thaioil Group

Corporate social responsibility

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CORPORATE SOCIAL RESPONSIBILITY

Challenges, Risks, and Impacts

In 2023, the Clean Fuel Project (CFP) construction made significant progress which also posed a challenge for the Company to maintain business stability, while ensuring flexibility and agility in business operations. The construction could potentially impact the surrounding communities, such as traffic congestion, dust, and noise. Furthermore, in 2023, Thaioil Group encountered an oil spill incident at the Single Buoy Mooring (SBM-2). This presented another challenge for the Company to manage and maintain business continuity while aiding and mitigating the impacts of the incident. To address these challenges, Thaioil Group implemented a corporate social responsibility project to proactively prevent potential impacts that might affect the rights and safety of the surrounding communities. Also, the Company has developed the quality of life and driven the local economy through several projects that promote the quality of community life. Throughout this year, Thaioil Group operated community projects under the ESG strategic framework to maintain internal management stability and manage community impacts, particularly in communities surrounding the CFP project and operational sites.

Commitments and Targets

Thaioil Group is committed to building community engagements in accordance with the 2030 vision of “Empowering Human Life Through Sustainable Energy and Chemicals”. The Company conducts a petroleum and petrochemical refinery business under a framework of management excellence and in compliance with the principles of good governance, while also upholding responsibility towards stakeholders, environment, communities, and society to drive the Company towards sustainable development. The strategy for corporate social responsibility encompasses the following key elements:

1. Conduct social activities, focusing on projects that are significantly linked to the business operations of Thaioil Group.
2. Focus on four main activities: education, energy and natural resources, conservation of the environment, and quality of life. The strategy is to achieve self-reliance and sustainability.
3. Manage networking and collaboration with PTT institutions and other agencies with expertise and to be socially acceptable.
- 4. Promote the participation of stakeholders, including government agencies, customers, suppliers, and employees, in the CSR initiatives.

In 2023, Thaioil Group implemented integrated community development plans through projects and initiatives in society and culture, health and quality of life, education, and environment. Furthermore, Thaioil Group is committed to developing community, social, and environmental goals in line with the Company’s vision. In order to achieve this, Thaioil Group has adopted the social return on investment (SROI) concept to assess the effectiveness of community programs in a systematic manner.

Targets

Indicators	Unit	2023 target	2030 long-term target
Community complaints responded to, resolved, and resulted in measures to prevent reoccurrence	%	100	100
Community engagement score	%	More than or equal to 85	90
SROI in strategic CSR projects	Ratio	2:1⁽¹⁾	2:1⁽¹⁾

Management Approach and Performance

Management Approach

Thaioil Group has defined Corporate Social Responsibility Policy and reports the results of its performance to the Corporate Governance and Sustainability Committee on a bi-annual basis. The company has conducted community engagement programs covering all operations, including refinery units located in Thung Sukhla Subdistrict, Sriracha, Chonburi known as Sriracha complex.

Community Needs Assessment and Engagement

Thaioil Group conducts community relations activities with the communities surrounding the refinery area according to the “3-synchronization model” and the “5-Together” conceptual framework. This aims to encourage communities to participate in the development of their own communities, thereby becoming self-reliant and building strong communities while reducing impacts from Thaioil Group’s operations.

Thaioil conduct community impact assessment to identify potential negative impact and analyze community’s needs through various means, for example, exclusive meetings with community leader to explore emerging concern and mutual problem identified based on risk and environmental impact, the collection of feedback from subgroups, on-site visits with the households surrounding the construction project, and a community engagement survey, which conduct annually. This regular review of community’s perception and feedback allows the company to gain insight on impact it has on community and be able to design effective engagement strategy and appropriate corporate direction to further develop the community, tackle their concern and needs.

By considering the impact assessment result, the Company proactively implements preventive measures and proactive solutions to address potential impacts on the communities. To systematically response to existing community’s concern and uplift their quality of life, the Company is currently encouraging the community to participate in community relations activities and projects in four aspects; social, religious, local tradition, and culture; health promotion; education; and environment. In addition, the Company initiates a central function that allows communities to report incidents or complaints – VOS (Voice of Stakeholder) Management. According to the operational procedures, the central function will coordinate and collaborate with the internal functions in case of any complaints about occupational health, safety, and the environment.

Engagement approach and communication channels with local communities

Stakeholders	Stakeholder Engagement Approaches
Community Committee	1. A monthly 3-synchronization model meeting. 2. A monthly meeting with community leaders. 3. Communication through various channels, such as on-site visit by community relations officers, a group chat via LINE application, phone calls, official letters, and E-card. 4. Open house activities.
Village Health Volunteer Group	1. A bi-monthly meeting with Village Health Volunteer Network. 2. Engagement activities with Village Health Volunteer Network. 3. Communication through various channels, such as a group chat via LINE application, phone calls, official letters, and E-card.
Local Government Agency	1. A monthly 3-synchronization model meeting. 2. Coordination with local government agencies to provide on-site activities updates in case that communities have concerns towards Thaioil Group’s operations.
Elderly Group	1. Health promoting activities for the elderly. 2. On-site activities with the Village Health Volunteer Network to gather feedback.
Fishery Group	1. Community relations and engagement activities with the fishery group. 2. Communication through local fishery group leaders to inform on operations and to gather feedback. 3. Communication through community leaders.
NGOs / Environmental Impact Assessment Committee	1. A committee meeting to align understanding. 2. An Environmental Impact Monitoring Committee meeting in accordance with EIA regulations.
Ship Operator Group	1. An ad hoc meeting in case any event occurs. 2. Communication through community leaders.
Youth Volunteer Network and Committee	1. A monthly youth volunteer network meeting. 2. Engagement activities with youth volunteer network. 3. Communication through various channels, such as a group chat via LINE application, Facebook, or phone calls.
People living close to the refinery	1. Community forum activity to communicate on Thaioil Group’s ongoing projects and collect feedback. 2. On-site visits to communicate and align understanding on the construction projects as well as involve community members in problem solving.
General Public	1. Community relations activities and projects. 2. Communication and feedback collection through community committee.

In addition, the Company consistently organizes the capacity building session with community to ensure that they can access to various communication channels when having concern (e.g., email, telephone, community relation activities, annual meeting). This aim to reduce communication barrier and improve accessibility of information to maintain and enhance positive relation with the community.

Creating Social Value Through Community and Social Development Projects

Priority	Education (SDG target 4.3)	Environment (SDG target 13.1) (SDG target 13.3) (SDG target 15.2)	Energy (SDG target 7.2)	Quality of Life (SDG target 3.8) (SDG target 8.3)
Priority
Approach	Support education development projects in collaboration with academic institutions and award scholarships.	Manage forest conservation and rehabilitation and develop greenhouse gas reduction initiatives.	Develop alternative energy and encourage efficient energy consumption.	Develop local communities to provide employment opportunities and promote public health.
Target	By 2024 • Develop and support skill development for teachers and students in general education, English language, science, sports, arts, and other areas.	Support the Net Zero GHG Emissions Target by 2060. • Support transition to a low-carbon society through forest conservation, rehabilitation, and reforestation, while creating biodiversity to balance local ecosystems. Support the Marine Resources Rehabilitation Project in Chonburi by 2024. • Support marine resources rehabilitation project in collaboration with government agencies.	By 2024 • Install solar power systems in three hospitals and five remote local schools.	By 2024 • Organize 12 job training programs. • Over 300 beneficiaries participated in job training programs. • Organize more than 10 health promotion activities. • More than 500 community members participated in health promotion activities.
Social Value Created in 2023	School Project and CONNEXT ED project • In 2023, the Company implemented five projects to develop teacher skills in the fields of science, technology, and engineering, coupled with promoting students' sports skills. Teach for Thailand Project Supported the budget for two teachers to serve as a teacher assistant in the fields of science and English language at Wat Manorom School, Sriracha District, Chonburi Province.	Reforestation project for Carbon Credit Benefits • In 2023, Reforestation projects were implemented for the benefit of carbon credits. As a result, this project can absorb over 92,800 tons of carbon dioxide equivalent over the 10-year project period.	Sustainable for Health Care Project • In 2023, solar power generation systems were installed at three hospitals and community health centers, with a total capacity of 72 kW and at five Border Patrol Police Schools, with a total capacity of 20.7 kW, respectively.	Health Promoting Project In 2023, heath promoting projects were implemented as follows. • Organized 39 yoga sessions with 40 participants per session. • Organized 3 sessions of the 5-month Commitment 100,000 km. Walk and Run activities with 150 participants per session. Job Training Project • Organized 3 sessions of Additional Jobs for Increased Income Project with 30 participants per session. • Organized 8 community flea markets. Community Health Survey Project In 2023, community health survey projects were implemented as follows. • 205 households visited for preliminary health check-up. • 736 community members screened for non-communicable diseases, such as diabetes and high blood pressure, and participated in health promotion projects.
Business Value Created in 2023	• 43.16 million THB corporate reputation (PR value) generated by social development projects in 2023. • In 2023, the corporate volunteering culture included 911 volunteers who took part in 89 CSR activities for a total of 7,488 volunteered hours.

Highlighted Projects

In 2023, Thaioil Group implemented key social and community projects under the corporate social responsibility (CSR) framework as follows:

Community Management

• Community Products Project for Communities Surrounding Thaioil Group

• Project for mitigating the oil spill impacts

CSR Management Projects

• Thaioil CE School Model

Employee Voluntary Culture

• The “You Initiate… We Fulfil” Project: Year 3

CSR Networking & Branding

• Project to Support Victims of Natural Disasters

Performances 2023
Tracking of community grievance
In 2023, there is 33 complaints from the communities. According to the grievance mechanism procedure, the Company investigated and resolved all the submitted complaints, established prevention measures, and notified the complainants of the result.
Type of complaint 2020 2021 2022 2023

Solved 34 30 28 33

Unsolved 0 0 0 0
Update : February 2024

CSR Projects by CSR Framework Priority Area 2023

CSR Project	Priority Area	Objective	Performances 2023
Dental Health Promotion Project for Schools Around Thaioil Group	Quality of Life	To promote oral health for students.	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 students in grades 1 to 6 across eight schools in the Thaioil Group's surrounding communities, benefiting a total of 4,375 students.
Laem Chabang Youth Training for Jump Rope Championship Project	Quality of Life	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.	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. 1. Supported athletes to participate in the 1^st Jump Rope Championship competition for the Newcomer category on June 24, 2023, at the Vajiravudh Sports Complex (Thai-Japan), Bangkok. Thaioil Group secured one trophy from this royal-sponsored competition. 2. Implemented the 2023 Skill Development for Jump Rope Champions Project to qualify and train athletes from eight participating schools for national-level competitions. The project had 150 participants from the Thaioil surrounding schools. 3. Organized the 2023 Thaioil Jump Rope Championship on November 17, 2023, to provide an opportunity for athletes from all eight schools to show their abilities, compete for scholarships, and encourage youth in sports. The championship featured 52 events, 156 scholarships, and aimed to inspire and support young athletes in their sports endeavors. 4. Supported Laem Chabang youths to join the 14^th Thailand’s National Jump Rope Competition on December 16-17, 2023, at the Vajiravudh Sports Complex (Thai-Japan), Bangkok. Thaioil Jump Rope team achieved remarkable success, winning a total of 36 medals, including 14 gold, 9 silver, and 13 bronze medals in various events.
5-Month Commitment – 100,000 km. Walk and Run Project	Quality of Life	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.	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 over a 5-month period from June to October 2023. Additionally, there were three scheduled follow-up events at the Thaioil Health and Learning Center for the Community to monitor progress, with a total of 150 participants taking part in the activity.
Community Economic Support Project	Quality of Life	To enhance community capabilities through job creation projects at the Si Racha District Community Health and Education Center.	In 2023, Thaioil Group conducted community economic development activities as part of the Community Economic Promotion Project. The activities include: 1. “Additional Jobs for Increased Income” 2023: Thaioil Group organized skill development projects to enable interested individuals to apply their knowledge in creating sustainable income. These projects were conducted in three sessions, with 30 participants in each session. 2. Community Flea Market 2023: Thaioil Group initiated community flea market events to encourage each community to show and sell their locally produced goods, creating additional channels for product distribution. These events were held eight times throughout the year. In addition, Thaioil Group collaborated with the Faculty of Management Science, Kasetsart University, Sriracha Campus, to study the raw materials and production processes within the community. The aim is to leverage this knowledge to develop community products and services in the future.
Aquatic Species Project in collaboration with the fishery communities	Environment	To restore the marine and coastal ecosystems and resources to a state of abundance.	Thaioil Group actively supported the release of aquatic species, including male and female tiger prawns and juvenile horseshoe crabs with the fishery communities. In 2023, releases were conducted three times, which released over 5 million marine animals. The purpose is to increase the quantity of marine life and enhance the biodiversity along the coastline. Additionally, the initiative includes joint efforts to clean up beach litter, contributing to the creation of a beautiful coastal environment in the Ban Ao Udom area.
Thaioil CE WE GO Project: Promoting Circular Economy Values	Environmental and Resource Efficiency	To raise awareness of energy and environmental conservation among employees and foster positive coexistence behaviors within the organization.	In 2023, Thaioil Group conducted activities under the "Thaioil CE WE GO" project, as follows: 1. Recycling Used Wooden Pallets: The project involved repurposing used wooden pallets from the production process into furniture items such as shelves, wooden sofa sets, tables, and waste bins, which were then utilized within the organization. 2. Coffee Ground Recycling: The project focused on recycling coffee grounds from Akhani Coffee Shops into various products such as plant pots, home decor items, and materials for mushroom cultivation. These recycled products were also distributed to employees.
Sustainable Energy for Health Care & Education Project	Environment, Energy, and Quality of Life	To ensure energy stability for the hospital and school, to enhance the effectiveness of services provided to people, and to support greenhouse gas reduction.	Thaioil Group installed solar power generation systems, with the capacity of 72 kW, in Phanat Nikhom hospital, Nahin and Ban Nong Sai Sub – district Health Promoting Hospitals, in Phanat Nikhom District, Chonburi Province. This can optimize the capabilities and efficiency of medical services and public treatment. Through supporting the usage of alternative energy, the project reduced electricity cost by 455,000 THB per year and reduced the GHG emissions by 46.4 tons of carbon dioxide equivalents per year. Furthermore, Thaioil Group installed solar power generation systems, with a capacity of 20.7 kW, in five border patrol police schools located in Mae Ramat and Tha Song Yang Districts of Tak Province, including Ban Lepoedo Border Patrol Police Learning Center, Border Patrol Police Technical Volunteer School 1, Ban Kammapadod Border Patrol Police School, Ban Tindoi Border Patrol Police Learning Center, and the Royal Border Patrol Police Learning Center, Government Savings Bank (Ban Terkee). This project aims to support the electricity for the schools in the rural areas and use the electricity for maximum benefit. As a result, this project saved the costs of diesel fuel that was used for electrical generation by 579,736 THB per year and reduced the GHG emissions by 30.5 tons of carbon dioxide equivalents per year.
Forest Planting Project for the benefits of Carbon Credits	Environment and Quality of Life	To tackle climate change challenges, Thaioil Group aims to restore degraded forest areas and promote the expansion of mangrove forest areas to function as carbon sinks. This initiative is designed to support the reduction of greenhouse gas emissions in the country.	Thaioil Group collaborated with the Department of Marine and Coastal Resources (DMCR) to conduct the Mangrove Reforestation for Carbon Credit Project (Mangrove Reforestation Project) with 56.22 acres in Chonburi Province. This project is expected to absorb approximately 1,550 tons of carbon dioxide equivalents over 10 years. In addition, the Company requested an additional 300 rai in Trang Province from the DMCR to develop mangrove project. The project will commence in 2024 which is estimated to absorb approximately 8,250 tons of carbon dioxide equivalents over 10 years. In the meantime, Thaioil Group has conducted Carbon Credit Project (Forest Plantation Project) with the Royal Forest Department (RFD) in the area of 2,000 rai in Phrae Province. This project is expected to absorb approximately 20,000 tons of carbon dioxide equivalent over 10 years. In addition, the Company has requested an additional 6,300 rai in Phrae Province from RFD to expand the Forest Plantation Project in 2024. The project is expected to absorb approximately 63,000 tons of carbon dioxide equivalents over 10 years. Moreover, Thaioil Group supported two community enterprises in the Forest Plantation Project. The Company provides knowledge on forest conservation and hires them to plant and maintain the forest. Also, this helps strengthen the local economy.
Smart Farming Project.	Quality of Life	To develop pilot projects for designing “new normal” processes in farming, aimed at enhancing the production of agricultural products, increasing incomes, and assisting farmers and community enterprises in achieving stable yields and reliable distribution channels. This initiative contributes to the sustainable resolution of economic challenges within communities.	Thaioil Group actively supported Thai farmers through the ‘Innovation for Smiles Project’, with PTT Group Smart Farming. The initiative promoted technology and knowledge to develop innovative agricultural production processes and increase farmers’ incomes. Additionally, it facilitated product distribution through the Thaioil Refinery Market and the CFP project areas. The following activities were conducted: - Thaioil Group collaborated with Tha Chang Community Learning Center (Sarapi Tha Chang) in Tha Chang Sub-District, Sawang Wirawong District, Ubon Ratchathani Province, Ubon Bioethanol Co., Ltd. (UBE), the Department of Community Development, and the Tha Chang Noi Organic Agriculture Community Enterprise to support the construction of open greenhouses for organic salad vegetables cultivation. - Thaioil Group collaborated with the Faculty of Agriculture and Natural Resources, Eastern University of Technology (EUT), and Thai Ratchamangkhala University Farm to support the construction of closed greenhouses for organic salad vegetables cultivation in Eastern University of Technology, Bang Pra Sub-District, Sri Racha District, Chonburi Province. - Thaioil Group collaborated with the Central Chonburi Prison, Khlong Kiew Sub-District, Ban Bueng District, Chonburi Province to support the construction of versatile buildings to develop an organic agriculture learning center for the future.
PTT Group Model School Project and CONNEXT ED Project.	Education	To support basic education and develop leaders in schools and the educational sector, to become a significant force driving education through knowledge exchange, learning, and the development of schools with school executives.	In 2023, Thaioil Group conducted various activities under the PTT Group Model School and CONNEXT ED projects: 1. AI Readiness Program (2023) 2. STEM Education Promotion (Science, Technology, Engineering and Mathematics Education: STEM Education) aims to enhance the teacher skills in science, technology, engineering, and mathematics in both primary and secondary schools. This involved 23 schools under CONNEXT ED, with 64 participants. 3. STEM 4E Integrated Learning Management Capacity Building Program aims to develop the capacity of school’s executives and teachers. This project enhances the basic knowledge in designing learning processes and integrating essential life skills through 4E concepts, including Ethics & Growth Mindset, Entrepreneurship, Energy Literacy, and Environmental Awareness. There are 12 schools under CONNEXTED project, with 50 participants. 4. English Language Development Project aims to develop English skills through applications. Also, the Company develop English teachers through Global Englishers for Language Teaching program. 5. Thaioil Group Volunteer Spirit Program aims to promote the employees to engage in volunteer activities by providing STEM and waste separation knowledge, organizing English camps, and conducting football clinics for students in schools under Thaioil Group's supervision.
Teach for Thailand Project.	Education	To develop potential changemaker teachers to serve as teaching assistants for middle school students.	Thaioil Group has allocated budgets to develop teachers to be changemakers for the fifth consecutive year. In 2023, the Company funded two teaching assistants for science and English 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 548 students in English and science subjects during the 2023 academic year. 2. Conducted an English language skills development camp, resulting in 78.6% of students expressed positive attitudes towards the use of English language, and 73.2% of students demonstrated the ability to apply the knowledge in their daily lives. 3. Improved teaching methods, leading to better performance in English subjects among students. As a result, 60% of students developed goal setting and were motivated to achieve their goals. Meanwhile, 13% of students achieved good English skills, demonstrating the ability to understand and answer questions, and communicate in English. 4. Adopted technologies in the teaching materials, such as videos, board games, and online programs. As a result, over 90% of students demonstrated interest, development, and a positive attitude towards English subject, with similar results in science subject. Furthermore, community engagement activities were conducted to bolster English knowledge among local residents during significant events. 5. The school director and staff were satisfied with the teaching performance of the changemakers. They acknowledged that the changemakers are competent to perform the work in challenging contexts. Also, they would recommend this program to others.
Thaioil Group Supports Youth Dreams in Becoming Sport Professional Project	Quality of Life	To improve quality of life for youths living in communities surrounding Thaioil Group, as well as the offspring of employees by providing assistance with sports training and practices.	Thaioil Group has collaborated with PTT Football Club, Bluewave Chonburi Futsal Club, and the Thai Swimming Association for the sixth consecutive year. The Company has been actively involved in sports development by providing professional coaches for football, futsal, and swimming training to the youth in the Laem Chabang area. The activities in 2023 include: 1. Conducted a training workshop for football coaches in the 2^nd Generation of FAT G Diploma Course. The Company has collaborated with PTT Football Club and the Football Association of Thailand to enhance the skills on football coaching of PE teachers for the local youth in schools in Laem Chabang sub-district. This aims to elevate the football coach to potentially become professional coaches in the future. 2. Hosted a proactive football clinic with activities held for 8 schools in the Laem Chabang sub-district. The Company also organized football competitions for the members of the football clinic and 10 communities surrounding Thaioil Group’s operation. Additionally, the Company provided football equipment to 8 schools surrounding the Company’s refinery operations. 3. Arranged a futsal clinic to enhance knowledge, skills, and techniques for young athletes in the Laem Chabang sub-district. This program aims to inspire local youth to pursue professional sports careers and participate in national-level competitions. Additionally, the Company promotes physical fitness and the beneficial use of leisure time during school breaks. 4. Organized friendly football competitions and training with professional coaches and futsal players, at the Bluewave Arena in Chonburi, to exchange experiences and inspire youth who aspire to become professional athletes in the future. 5. Organized the 2023 “Rescue Life… Fight the Drowning Crisis” Project for the fourth consecutive year. This initiative provides an opportunity for 250 youths aged 6 to 15 in the Laem Chabang sub-district to learn swimming skills with the instructors from the Thai Swimming Association and university student for 10 days. The program aims to reduce the drowning rate among Thai youth and encourages community participation in promoting water safety.