Environmental quality management

Environmental Quality Management

Environmental Management SystemIt is the mission of Thaioil Group to be committed to the society. Therefore, the company has established its policies based on Quality, Security, Safety, Health, Environment, Energy Management and Corporate Social Responsibility, while also implementing the Integrated Management System (IMS) that is in accordance with international standards (ISO 9001, ISO 14001, and OHSAS 18001) relating to quality, safety, health and environment as a framework for environmental operations. This has resulted in Thaioil Group in being able to effectively managing its resources as well as systematically managing the environmental impacts that may occur.

 

Overall Environmental Policy Along Value Chain 

 

Thaioil address environmental management through policy and guideline covers all business activities along value chain as follows.

"Click" Thaioil Group Policy Quality, Security, Safety, Health, Environment, Energy Management and Corporate Social Responsibility Commitment to prevent and control environmental quality in production operation, product and product distribution.
  • "Click" Supplier Code of Conduct to protecting its business partners (suppliers) from business operation risks deriving from related laws, rules and regulations. This includes business disruption risks that may affect the company's reputation in environmental, social and ethical aspects.
  • "Click" TOP Way of Conduct - QSHE Policy (Page 36-38) to ensure the alignment amongst Thaioil and its affiliates, and to create competitive advantages in the market in achieving long-term goals and sustainable growth.
  • "Click" ESG Criteria for Thaioil Investment Management For consideration of environmental, social, and governance impact at investment project initiation phase for both merge & acquisition (M&A) and non-M&A investment schemes.  

 

 

Environmental Management Governance

Environmental governance in Thaioil Group is conducted by the department responsible for the management of quality, health and safety. Environmental management is linked and traceable to related departments, thereby increasing the effectiveness of operations and development as well as systematically manages potential environmental impacts. In addition, operations relating to the environment that must be reported to government agencies will be inspected by an external expert to validate their appropriateness. Environmental operations are also reviewed annually by the executive managers of Thaioil Group to lay down the foundation for future development.

 

Environmental management for sustainable development

Thaioil Group is aware that its core business of oil refinery and petrochemicals may impact the environment and society without proper management. Furthermore, many stakeholders at present are more involved in the monitoring of environmental performance and various impacts of business operations. Therefore, Thaioil is committed to maintaining its environmental management at a level that is internationally accepted and succeeding the law. Thaioil has maintained that environmental management in each region is up to the same standards to promote both domestic and international investments. In the push to become the region’s leading organization, Thaioil abides by the current laws, conditions, and existing plans to cope with changes in the future. In addition, the Group has also driven its sustainable operations under the Environmental Master Plan. The Master Plan is one element of the Sustainable Development Roadmap to manage the environment by integrating various aspects including related laws, manufacturing trends, stakeholders’ opinions as well as according to internationally-accepted methods stipulated in the United Nations Global Compact (UNCG), Dow Jones Sustainability Indexes (DJSI), the Global Reporting Initiative (GRI), etc.

 

Management of Waste and Scrap

Thaioil Group has adopted the Waste Hierarchy by prioritizing the minimization of waste from operations, followed by the separation, reuse, and recycling of waste. Remaining waste are disposed in landfills. This is a valuable method for the management of resources that is in accordance with Thaoil’s mission and environmental policies. In addition, Thaioil Group has implemented a Zero Waste to Landfill policy and has set a goal to manage the organization’s industrial waste within the year 2020.

 

 

Emission Improvement Project (EIP)
  • Oxide of Sulphur (SOx) is the significant pollution of petroleum refineries, which generates strong ordor pertaining to major complaints from the surrounding communities when the astmosphere around the refinery is not appropreate for gas dispersion. 
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  • Emission Improvement Project (EIP) has been installed in 2015 in order to improve the quality of air for the surrounding communities and our employees working in the area. As a part of the Energy Master Plan, Thaioil has invested in advanced refinery solutions for cleaner and higher quality oil production and the product line.  With such solutions, Thaioil is able to refine poor quality crude oil to produce product that meets the standard of Euro IV; hence reducing SOx emissions from refinery production beyond the requirements of the laws and regulations. This project also response to UN Sustainable Development Goal 3: Improvement in health and well-being.
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  • This allows Thaioil to have the flexibility in purchasing poor quality crude oil which leads to cost saving and to minimize risk of crude oil shortage. With EIP, all production units now produce products with Euro IV grade and generate   revenue of liquid sulphur capture from the emission to the company. The communities and our employees benefit from this business program through the 60% SOx emission reductions both from the production process as well as from tail pipe emissions. As the result, they now have better quality of health and well-being from cleaner air.
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  • Performance of this project are measured as quantity of SOx emitted from our operation and community perceptions (e.g. number of odor complaints and community satisfaction score). The value on health of people in our society is also tracked by the commodity medicines program which conducting the community health survey to prepare community health profiles by  means of Family and Community Assessment Program (FAP) since 2011.
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  • Not only the social and environmental impacts near the refinery are measured, but the social and environmental externalities outside refinery are valuated by conducting the study on life cycle assessment. SOx can evaporate and cause acidic rain which could impact other areas away from the site of emission. Acidic rain damages vegetation and wildlife, and pollutes water bodies. In addition, EIP benefits on better air quality contributed by vehicles consumed our Euro IV product. 
Environmental Expenditures

The environmental expenditures are tracked for measuring efficiency of our environmental projects which it also provide valuable data for internal cost-benefit analysis. The expenditures on environmental care cover  all core operations  

 Environmental expenditures FY 2015 FY 2016 FY 2017 FY 2018
    · Investment amount (million baht)
23.40 43.00 26.30 0.00
    · Expense amount (million baht)
6,648.93 7,578.28 7,790.62 10,619.87
 Economic benefit of environmental protection (million baht) * 1,044.80 195.00 103.10 197.71
  • * Economic benefit of environmental protection covers cost saving and tax incentives.