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2 ' !+ ' + ( ( () * ( ,$/ 3$ #1 %+1 45 + % " $ , ( + - , %& !- " !+ :LWK 0RUH 7KLQN $FW &DUH Sustainability of the business can not be achieved by business excellence only; corporate responsibility and environmental awareness also have a major role. PTT Chemical is therefore willing to do more than it has in the past, for a better society and environment. PTT Chemical engineers the security and sustainability of the business growth along with the social and environmental responsibility through improving thinking and actions; changing perspectives; expanding vision and imagination; and offering more responsibility. We believe what has been said needs in all our employees’ minds, to ensure this footstep is towards a brighter and more beautiful future.

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Statement GRI Application Level Check GRI hereby states that PTT Chemical Public Company Limited has presented its report “2010 Sustainability Report” to GRI’s Report Services which have concluded that the report fulfills the requirements of Application Level A. GRI Application Levels communicate the extent to which the content of the G3 Guidelines has been used in the submitted sustainability reporting. The Check confirms that the required set and number of disclosures for that Application Level have been addressed in the reporting and that the GRI Content Index demonstrates a valid representation of the required disclosures, as described in the GRI G3 Guidelines. Application Levels do not provide an opinion on the sustainability performance of the reporter nor the quality of the information in the report. 23 March 2011, Amsterdam

Nelmara Arbex Deputy Chief Executive Global Reporting Initiative The Global Reporting Initiative (GRI) is a networkͲbased organization that has pioneered the development of the world’s most widely used sustainability reporting framework and is committed to its continuous improvement and application worldwide. The GRI Guidelines set out the principles and indicators that organizations can use to measure and report their economic, environmental, and social performance. www.globalreporting.org Disclaimer: Where the relevant sustainability reporting includes external links, including to audio visual material, this statement only concerns material submitted to GRI at the time of the Check on 11 March 2011. GRI explicitly excludes the statement being applied to any later changes to such material.

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:HOFRPH We believe that our business - providing chemicals - is necessary for human and the quality of life in societies. We welcome you to read this report which adopted Global Reporting Initiative Guidelines (GRI), which is the international standard for sustainability reporting. This report is also served as the United Nations Global Compact 2010 Communication on Progress (COP). Moreover, you can visit our website on PTTChemgroup.com to learn how we operate responsibly to help meet the need for supporting our society, environment by promoting harmony and a mutually beneficial cycle between “industry� and “the society.�

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“ " -#& # ) * + .' / # " #$ & - ## 0 12 " 3 " '4 & 5 5 &- '4 6 5 ! 7 !# ' 0. � “By balancing economic, social and environmental dimensions will help PTT Chemical to achieve growth and drive our performance to compete in the international arena.�

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&UHDWLQJ sXVWDLQDEOH 9DOXH D 6WUDWHJLF 1HFHVVLW\ At PTT Chem Group, our aim is to be the chemical industry leader in bettering quality of life via human, technology, and innovation potential as well as being a sustainable business role model.

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We believe with high morale and responsibility in our conduct not only can raise quality of life and develop higher living standards to stakeholders, but contribute to our nation as a whole from today and beyond.

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More importantly, by creating such values enhances PTT Chem Group to reach healthier business potential by improving financial performance from lowered costs which is quite essential for qualitative growth. This approval reflects from stakeholders in leading to sustainability.

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This Sustainability Report was prepared in accordance with Global Reporting Initiative, GRI-G3 Guidelines to demonstrate comprehensive performance on sustainable development. It is our pleasure that the report was improved and qualified as ‘Application level C’ last year to ‘Application level A’ this year from GRI.

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3DWK WR 6XVWDLQDELOLW\ PTT Chem Group’s Corporate Social Responsibility (CSR) roadmap emphasized on integrating variety of business operations, corporate vision, fine-tuning business means according to environment, risk factors and global leader benchmarking, in addition to aligning stakeholders expectations. All key considerations are also our key success factors in moving forward as a leader in sustainability development. In 2010, PTT Chem Group’s CSR Committee accompanied with Value Centers achieved its mission with formulating PTT Chem Group’s CSR Strategy and Master Plan for 2011-2015 as a framework for all business units. It contains guidelines to efficient natural resource utilization, responding to stringent regulatory requirements, bettering Thai quality of life and collaboration with industry groups for community benefits, which are all vial to PTT Chem Group’s business conduct.

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We continue to improve the way we embed the principles of Corporate Social Responsibility into the way we manage our business. Thus, our business units are now required to adopt PTT Chemical CSR Framework, which is aligned with international standards including ISO 26000. To put PTT Chemical CSR Framework into practice, businesses must develop short and longterm action plans, including challenging targets through incorporating into their business plans.

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Findings in studies for Master plan revealed challenges with significant effects to the group’s growth target. In 2010, PTT Chem Group countered these challenges by means of utilizing natural resource efficiently, such as lowering water and energy consumption in production through equipment improvement and installation down to improving production efficiency. PTT Chem Group collaborated with industry members and communities in establishing and being a part of “Community Partnerships Initiative� to help coordinate and manage all concern issues related to social and community well-being with PTT Chem Group’s CEO as the group’s president.

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The “Map-ta-phut� situation has subsided after the court decided to have only the expansion of Ethylene glycol production project of TOC Glycol Co., Ltd. - a part of PTT Chem Group - to halt operation according to the Thai constitution. We are awaiting the royal Thai government for direction to move forward. Nevertheless, without further ado, all projects conduct Health Impact Assessment (HIA) reports and are preparing equipment readiness for operation.

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2010 challenges are testimony to direct effect of PTT Chem Group’s determination towards social and environment responsibility with our business performance and plan. Therefore, it is with our honour to announce that PTT Chem Group has joined the United Nations Global Compact and support The UN Global Compact’s ten principles in business conduct with the group’s CSR strategy.

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PTT Chem Group is resolute as portray in this report in its determination and progress as a leader in Petrochemicals & Chemical as well as a role model in Corporate Social Responsibility.

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We have the company incorporated such responsibility in all activities to help lead to sustainable development as stated in our vision: Creating sustainable social value through innovation.

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MMr. VVeerasakk KKositpaisal it i l President & CEO

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Sustainability Report 2010 PTT Chemical Public Company Limited

Last year, it was our pride to take a big step toward a global social responsible company by participation in United Nations Global Compact, the UN initiative for responsible businesses and supporting UN sustainable development initiatives and goals. There are over 8,700 participants from 135 countries comprising of leading companies, NGOs, academics and government agencies. To date, the Global Compact stands as the largest corporate citizenship and sustainability initiative in the world PTT Chemical upholds the UN Global Compact’s ten principles and commits to integrate the 10 principles into PTT Chemical business process through the company Sustainability Strategy. The progress to date of our actions could be illustrated as follows:

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Global Compact Principles

Actions

Human Rights

1. Businesses should support and respect the protection of internationally proclaimed human rights 2. Businesses should make sure that they are not complicit in human rights abuses

• Written company’s code of conduct on respecting employees’ fundamental human rights regarding international norm • Grievance mechanism in case of human rights abuse • One of the elements in PTTCH Sustainability Strategy, “Human Rights” • Continuous fence-line communities dialogue to receive concerns and provide understanding and resolution

Labour

3. Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining 4. Businesses should uphold the elimination of all forms of forced and compulsory labour 5. Businesses should uphold the effective abolition of child labour 6. Businesses should uphold the elimination of discrimination in respect of employment and occupation

• Written policy on human resources management on respecting fundamental rights at works and non-discrimination • Written company’s code of conduct on non-discrimination, fair compensation and benefits, supporting group activities and employee consultation • Written company rule on no child, forced and compulsory labour • One of the elements in PTTCH Sustainability Strategy, “Labour Practices” • Grievance mechanism and annual employee satisfaction survey

Environment

7. Businesses should support a • One of the elements in PTT Chemical Strategy, “Environment” precautionary approach to focusing on energy efficiency, whereas pollutions and wastes environmental challenges management considered as fundamental practices 8. Businesses should undertake • Written company’s code of conduct on treatment of initiatives to promote greater communities, society and environment and written Good environmental responsibility Practices on undertaking of transactions with business partners 9. Businesses should encourage who shares its ideals of social and environmental responsibility the development and diffusion • ISO 14001 environmental management system is in place for all of environmentally friendly major facilities, which has environmental risk assessment as a technologies requirement to prevent the impact

Anti-corruption 10. Businesses should work against • Written company’s code of conduct on conflict of interest, corruption in all its forms, procurement and treatment of business partners, acceptance including extortion and bribery and giving of gifts, assets or other benefits and internal controls / audits and accounting / financial reports • Disclosure of PTT Chem Group Corporate Governance Policy and Business Code of Conduct on the company’s website • PTT Chem Group Business Code of Conduct Hand book for suppliers and business partners to disclose fair business practices • Whistleblower system for internal complaint • Grievance system for external compliant through the company’s website, letter and facsimile

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(1) PTTCH production = 1,863,000 tons per year and PTTPE production = 1,025,000 tons per year (2) PTTCH production of Butene-1 and Butadiene = 100,000 tons per year

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(3) PTTCH production = 300,000 tons per year and BPE production = 500,000 tons per year (4) PTTPE production = 300,000 tons per year (5) PTTPE production = 400,000 tons per year (6) TSCL production = 90,000 tons per year

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(7) TOCGC production = 300,000 tons per year and expansion project production = 95,000 tons per year (8) EA production = 50,000 tons per year (9) TEX production = 50,000 tons per year

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(10) TOL production = 331,000 tons per year (11) EMERY production = 976,000 tons per year (including MPR*) (12) Bio Spectrum production of Carotenoid (by-production of Methyl Ester used in food coloring)

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2YHUDOO %XVLQHVV PTT Chemical is a fully integrated petrochemical and chemical company. Our products are derived from our main product, Olefins, namely ethylene and propylene with other products including EO-Based Performance and Oleochemicals. The Company also provides services to support PTT Group's production capacity, such as shared facility, jetty and storage tank farm. The Company's distinctive business expansion plan will enhance its competitiveness, as well as elevate Thai petrochemical industry into the international arena.

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6XFFHVV YLD 6XVWDLQDEOH 'ULYH PTT Chemical works towards strengthening our economic, social and environmental performances, in order to lay a strong foundation for a growing international presence and to become a leader in petrochemical sector. As we expand our company into a new era of strength and stability, PTT Chemical realizes that our key challenge is to propel our operation with responsibility to the society and environment, as well as putting in place CSR practices in line with internationally recognized standards.

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%XVLQHVV 6XVWDLQDELOLW\ PTT Chemical believes that business sustainability cannot success upon profitability alone, but also by operating responsibly can sustain our growth path. PTT Chemical operates on a foundation of Corporate Social Responsibility Framework of PTT Chemical.

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PTT Chem Group considers its essential to embed CSR into its management strategies and to practice CSR as a part of its business operations. As such, PTT Chem Group continues to embed the principles of CSR into the way we manage our business on a day-to-day basis and from board room to shop floor.

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&RUSRUDWH 6RFLDO 5HVSRQVLELOLW\ *RYHUQDQFH PTT Chem Group has appointed PTT Chem Group’s Corporate Social Responsibility Committee since 2009 to be responsible for strategy formulation and execution. At reporting time, the Committee comprises of 11 members with PTT Chem Group’s CEO as the president of Committee along with top management from each “Value Center� and other business functions. The Committee members must be knowledgeable in assorted disciplines so as to blend their knowledge and competence to oversight the CSR governance of PTT Chemical. The Committee is accountable for playing proactive roles in decision-making, direction-setting and provision of oversight of management’s performance in implementing CSR Policy and strategy. This also ensures implementing the vision and strategy effectively. The committee’s role and responsibility are:

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1. Set PTT Chem Group CSR’s policy complying to PTT Chemical standards and international standards 2. Give advice, promote and support resources to related parties to enable CSR plan implementation effectiveness 3. Govern and monitor the group’s practice with continuous improvement that conforms to the policy including required standards 4. Review and approve CSR action plan and assess the group’s CSR performance 5. Account for CSR report preparation in line with international CSR standards

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The PTT Chem Group’s CSR Policy and Strategy are communicated and deployed through this Committee in Corporate Strategy Deployment & Alignment sessions. The Committee members are responsible for deploying CSR Policy, Strategy and action plans; direct and review CSR performance in their line of responsibility. Reviewing of performance in implementing CSR Policy and Strategy is implemented on a quarterly basis, as well as reporting through Corporate Dashboard within BSC Monitoring and CSR Committee Meeting

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In 2010, the Committee met 5 times to review, set and approve CSR Strategy for PTT Chem Group. In addition, the Committee has set medium and long term goals, including material issues to group and programs to be achieved within 2015 as depicted as follow:

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The nature of our business means that social and environmental issues are material to our future success also material to the interests of local communities and other stakeholders in location where we operate.

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Through formulation of our CSR Strategy, PTT Chem Group CSR committee defined priority areas and reviewed completeness and comprehensiveness of the issues, we identify as material to our business and our internal and external stakeholders. Our assessment of materiality is a judgement based on a wide range of factors including our ambition levels, priority and the changing landscape.

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The CSR issues, we regard as the most material including in our progress and plan at the end of 2010 are shown in the table.

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Priorities & CSR Framework

Material Page issues

Energy Management

Efficient Operations

Water Management

2010 Plan

2010 Performance

2011 Plan

49

Conserve energy in processes and offices.

• Improve production process to reduce • Support and study breakthrough energy loss. However rate of energy technology to improve energy consumption in 2010 was higher due efficiency. to production turn down from raw material limitation and turn around at production unit#1 of olefins plant I-4 in 2010. • Design Rayong office building to be energy saving building by using natural light and using LNG to generate electricity and cooling water.

49

Promote an energy saving awareness to all employees.

• Establish olefins plant I-1 and I-4 • Communicate and arrange contest energy conservation working team for energy saving in offices. and announce energy conservation policy. • Communicate energy conservation regulation to all employees. • Promote energy saving awareness to all employees including add communication channels like billboard and e-mail.

47

Monitor water availability situation and suggest measure in case of water availability crisis in Rayong Province.

• Set up water resource management task force to monitor water availability crisis in Rayong Province and suggest water management measure to relevant agencies.

47

Improve efficiency of water • Increase water use efficiency, e.g. use in the production increase a number of water circulation process. in cooling system and inspection of valve and leakage. However, due to production turn down from raw material limitation and turn around at production unit#1 of olefins plant I-4, resulting in increase rate of water consumption than the previous year. • Analyse and calculate water use efficiency per ton product and monitor against criteria. Manage discharge Improve efficiency of an existing of treated wastewater. reverse osmosis (RO) system, e.g. changing filter and pumps.

48

• Develop proactive monitoring and mitigation measure in case of possible water shortage crisis in 2011.

• Support and study appropriate technology to further increase the proportion of reused and treated wastewater in the production process without compromising production and product quality. • Reduce water use in production process and continuously monitor and analyse water efficiency per ton product. Install RO at PTT Polyethylene and TOC Glycol to efficiently treat and recycle treated wastewater to production process.

Sustainability Report 2010 PTT Chemical Public Company Limited

Priorities & CSR Framework

2010 Plan

2010 Performance

2011 Plan

47

Conserve and rehabilitate water storage in Tap-ma Canal to develop sustainable water use.

Conduct feasibility study of the project by applying technology in the study to record data and statistics which will lead to root cause analysis and response measure. In 2010 these response measures were proposed to the government agency for consideration.

Leverage the collaboration between government agency and private entity to rehabilitate water source by conducting studies of water ways in mountains, install weir to retain water and prevent water entering the sea, and develop artificial water storage for community and agricultural during dry season.

Join a membership of national and international network for sustainable development, i.e. Thailand Responsible Care TBCSD and UN Global Compact

Material Page issues

Organization Governance

Implementation of PTT Chem Group CSR Strategy in conformance with international sustainability guidelines

5

Join networking with sustainability organizations.

Product Stewardship

Green and user-friendly innovation

56

Develop existing products to be friendly to the environment and users in line with international standards.

Expand the business in response to bio-plastic demand

56

Develop chemical products which are produced from natural materials and business value chain for bio-plastic

Collaboration of industry to improve community quality of life

83

Corroboration in the industrial group to manage social issue

Collaboration of industrial sector for the mutual benefits of our communities

26

Continue to expand our networking with sustainability organizations through studies of criteria of these organizations (e.g. DJSI, FTSE4GOOD and PRI) with respect to relevance and priority to PTT Chem Group Maintain products quality to align Continue to expand certification with international safety and health of existing products to cover environmental aspect (i.e. in standards such as high density polyethylene (HDPE), low density product labelling) through studies of environment label standards. polyethylene (LDPE) and linear low density polyethylene (LLDPE) resins, which now comply with US Food and Drug Administration (US.FDA) specifications and Restriction of Hazardous Substances (RoHS) standard. • Form a joint venture with reputable oversea company to study the production of Polylactic Acid (PLA) and Polybutylene Succinate (PBS), bioplastic polymers from sugarcane, corn flour and tapioca. • Continue our business dedicated to oleochemicals in which produce natural chemical products from natural materials like palm oil, palm kernel oil, vegetable oil and animal fat. In 2010, oleochemical business is accounted by 5% by capacity of PTT Chemical Portfolio. Take part in founding and join the network, Community Partnerships Initiative, a network of 5 large companies in Map Ta Phut Industrial Estate with PTT Chem Group’s CEO as the group’s president. The network is founded with clear objectives which are to develop a pilot environmental friendly factory, internal monitoring process and enhance community quality of life and education. In addition, Community Partnerships Information Center has been set up.

• Plan acquisition of bio-plastic company in overseas and adopt bio-plastic technology in Thailand. • Continue to supply the markets with natural chemical products from our olechemical business

Improve and practice emergency response drill with surrounding communities and relevant agencies, i.e. hospital, doctors, nurses, fire fighters. All communities are targeted to be included in the drill to build trust in emergency response of industry.

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&RPPLWPHQW WR &RUSRUDWH *RYHUQDQFH PTT Chemical is committed to conduct business in accordance with the company’s good corporate governance and underlining the business ethics, transparency and accountability to its all stakeholders, which consist of the shareholders, customers, business partners, business competitors, creditors, government, employees, communities as well as society and the environment at large. Its goal is to become a leading company in petrochemical sector, chemical, public utilities and supplementary services of international recognition for the efficient management of PTT Chemical that can render best benefit for the stakeholders, ultimately paving the path sustainable long-term growth.

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&RUSRUDWH *RYHUQDQFH 3ROLF\ The Board of Directors, the Management and all employees are firmly committed in the adherence to and application of the principles of Good Corporate Governance.

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Since December 2006, PTT Chem Group announced its corporate governance policy along with distributed the Corporate Governance and Business Code of Conducts Handbooks. In 2009, it has received revisions and updates to meet more industry and global standards and was enforced throughout the group. In essence, the handbook consists of two parts: first, the policy and structure for corporate governance to bolster confidence in the Company’s business and second, the business code of conduct for all PTT Chem Group employees to observe as discipline in their business conduct. The handbook covers issues from anti-corruption, transparency, fair competition and fair marketing, respect to customer privacy and information protection, fair service to regulatory compliance.

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Corporate governance policy is deployed through this hand book, which is issued to all managements and every employee. As a commitment by every individual within PTT Chem Group to the policy and business code of conduct appearing in this handbook, PTT Chem Group is asking all recipients to master and sign their names in acknowledgment. In addition, for new recruits, we provide trainings on the policy and business code of conduct appearing in this handbook to jointly foster an organization with an internationally accepted standard of corporate governance. Moreover, PTT Chem Group expects all staff to help monitor on going corporate governance practice by support upright reporting to superiors, internal audit and/or Company Secretary regarding to incident related to breach or doubt of breach of corporate governance policy and business code of conduct. All reports will be treated as confidential. If found guilty as suspected and charged, related staff wil be punished escalating from corporate rules up to legal prosecution depending on the case. This is for PTT Chem Group to uphold good governance to its best. Also, PTT Chem Group assigns the Corporate Governance Committee to oversee, evaluate and review the deployment of corporate governance policy and business code of conduct to ensure good governance of the organization.

Sustainability Report 2010 PTT Chemical Public Company Limited

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3ROLWLFDO 1HXWUDOLW\ PTT Chem Group’s policy is to conduct business under the law with utmost respect and honesty. Political neutrality is enforced; hence, political support both direct and indirect in forms of funds, resources or any types of property are prohibited towards political parties, politicians and/or related groups. This is not to be conflicted with good citizenship which the PTT Chem Group promotes democracy and supports election rights according to the Thai constitution and other laws.

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The PTT Chem Group emphasizes on establishing two-way communication channels for our employees, such as annual meeting between the top management and employees to inform on strategies and business directions including any significant changes within the group; intranet system; and the group web board. In addition, the PTT Chem Group maintains various communication channels to allow different groups of external stakeholders to equally reach us, such as via our website (www.pttchemgroup.com), or direct contact with our investor relations or public relations. Placement of the PTT Chem Group’s communication channels are addressed in various medias to reach different audiences. Annual shareholder meeting is also a channel for even the minor shareholder could communicate recommendation and direction to the organization.

31

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PTT Chem Group organizes the internal audit as a separate unit, responsible for the assessment of sufficiency and effectiveness of the internal control on the operations and activities of every business unit in line with the annual audit. It must regularly report to the Audit Committee, to promote the effectiveness of the control environment, risk assessment, including risk related to corruption and effectiveness of internal controls under the ethical and standard internal audit standards for the independence and quality of the internal control.

8 " ( )+ % ( 9 %_ 2553 " 8 ( > | 3$ 8 " ( - , ! " 4} % (% (( ( 9 " / %_ ) + ( > %" . + ( %‰ ) , 1+ %& %" , - !+ , - ~

, ( " %* - + %: ( " !+ !, , !+ "+ %&

The Audit Committee submitted the evaluation report on the 2010 internal control to the management. The Audit Committee made suggestions to the management on continued improvement in the internal control. In 2010, no legal action was initiated against any of PTT Chem Group’s businesses in respect to corruption, accounting fraud, workplace discrimination, anti-competitive behaviour nor misconduct in marketing communication.

Sustainability Report 2010 PTT Chemical Public Company Limited

32

' 6 + ( > %" . + % "' * " * / -+ -+ - % % )+ 9 , ' (1 8'!+ # (Balanced Scorecard) 3$ / %: ( " ( + !+ () * (" %& " 3$ % )+ + 8 % )+ !+ " (! , )1 ( - !+ % - ( - !+ )1 -= !+ 0 ,$/ 1 (- () * (, " !- /

(PSOR\HH (YDOXDWLRQ 3HUIRUPDQFH $SSUDLVDO PTT Chem Group uses a number of key indicators to evaluate and reflect the company’s overall performance (BSC Scorecard) across financial, human resource, corporate social responsibility and etc. Evaluation results are part of performance review and compensation of CEO, top management to employee of every level respective to each position’s responsibility.

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5LVN 0DQDJHPHQW Corporate Risk Management Committee of PTT Chem Group is aware of importance of risk management to achieve business objectives. Therefore, the policy and systematically corporate -wide risk management framework are developed. Accordingly, the structure of the corporate risk management function has been reformed since 2009 and subsequently the revision of risk management manual according to the international standards. In addition, the PTT Chem Group has announced the use of Risk Management Procedure to compliment the manual including process to monitor risk status and progress of risk management plan and reporting to Risk Management Committee and the Board of Directors according to the frequency and process identified.

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PTT Chem Group has constantly ensured its group of companies’ risk analysis in both quantitative and qualitative aspects. The Value-at-Risk (VaR) is used in analyzing financial impacts at various probabilities resulting from changes in key assumptions. PTT Chemical also uses an analysis of impactlikelihood relationship in form of Risk Matrix in order to comprehend potential effects on its corporate KPIs and project goals. The Company advises its risk owners within PTT Chem Group to set up risk mitigation plans to reduce the likelihood or impact of the risks under their responsibilities. Progress monitoring is regularly reviewed.

33

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5LVN )DFWRUV Although, the PTT Chem Group has emphasized on aligning its risk management practice to the international standards, due to the unique nature of the petrochemical industry and of its Group’s activities, we inevitably realise that certain risks could thus have significant impacts on PTT Chem Group’s goals and business operations. Such risks are categorized into two types: industry specific risk and company and the group specific risk.

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" Corporate Risk Profile !+ -'! 0 !+ # 8' 2 >J 0+ /% 2 )+ (" -+ , + ( > %" . + 0

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In 2010, PTT Chem Group has managed risk according to the Corporate Risk Profile including has trend analysis and monitor world/Thai economic situation those could impact business operation of the PTT Chem Group. Risks in relevant to corporate social responsibility of the group include responding to stakeholder expectation, unclear environmental regulatory requirement, human resource development for organization growth. Hence, PTT Chem Group has been developed and executed risk management plan continuously throughout the year.

Sustainability Report 2010 PTT Chemical Public Company Limited

34

&6 , & 0 12 (&2120,& 3(5)250$1&(

37

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/ 5

377 &KHP *URXS .H\ )LQDQFLDO )LJXUHV < ) ' &: %XVLQHVV DW D *ODQFH

1

EMERY Oleochemicals @ > :

W /J>/ ! "! " ] Z + +"K+ ^ Z"+ \ ;

EMERY Oleochemicals is selected for outstanding Oleochemical producer from natural material in Asia Pacific /J>/ Z _ ^ #J # Z"+ Among largest Olefins producer in Asia

/J/> HDPE + +"+K ^ #J # Z"+ Top 10 Among largest HDPE producer in Asia

103,186 & million baht

#.

7RWDO 5HYHQXH

TOP

10

TOP

3

/ ! ; <' Olefins production capacity

2.8

/'>

million tons/year

70%

/ ! ; <' < # +^ ` Of Thailand’s Olefins production capacity and market share

Sustainability Report 2010 PTT Chemical Public Company Limited

38

/ !" 5 )LQDQFLDO +LJKOLJKWV ( > %" . + ( - * ) !+ ( >

( , - (!" + %_ / 31 2553 !+ 2552 PTT Chemical Public Company Limited and its Subsidiaries Statements of income For the years ended 31 December 2010 and 2009 +@ > Revenues

( financial budget 2553 2010

2552 2009

,

Revenues from sale of goods

98,656,003,913

83,952,092,721

- ( Revenues from rendering of services

2,431,290,126

2,077,078,053

-

21,090,045

163,387,735

219,177,658

1,475,848,967

648,469,768

Other income

459,882,792

165,022,462

Total revenues

103,186,413,533

87,082,930,707

%5 )+ ( Dividends income ( / ( Interest income " !+ %+

Net foreign exchange gain

39

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168,022 2010

103,186

2009

87,083

152,318 2008

85,111

10,290 2010 6,802 2009 11,739

' Total Assets

Total Revenue

Net Profit

160,251

2010 2009

2008

2008

- -" : !( + ( > 3$ ! %& - $ , % 9 - 0 ! ! %& ! " - 9 " ( , - (%_ / 31 2553 Note: Share of profits from investments accounted for using equity method which was included as part of total revenue has been reclassified to be separately presented as an item under profit and loss statement for the year ended December 31, 2010

2,000 - ( + ( > %" . + * 2 , )+ "9 8Z' !+ " - % 2!+ / 2 7 / 2 >J ! + %& % () * ( !+ - 2 '!+ -+ , !+ 0 ( + - ( + %{ - %& )1 (0+ 98 Z' ) + " "# ( * " !+ 0 ( 7 89 )+ "9 8Z'!+ " " ( " " , +1 " 3$ - %& - $ 7 2 >J

( 1 ( % 1 2 >J / (% 2!+ ( #

With more than 2,000 employees of PTT Chem Group, we believe our business direction creates product and innovation that contributes to responsible and sustainable development in where we operate. Other than our core business vision and mission, we have investment policy to achieve the target of a global leader in chemical product from natural raw material and policy in continuous development of product and innovation to response to the need of our customer. This leads to our contribution in sustainable economic development and economic distribution in both local and national level.

40

Sustainability Report 2010 PTT Chemical Public Company Limited

/ 0 12 !" &

& / "

(FRQRPLF &RQWULEXWLRQ WR 6RFLHW\ DQG (QYLURQPHQW &6 , & 0 12 " %& = , + ( > %" . + " == , !( ' “ 98 Z'

* "* " � - =" 7 )+ "9 8Z'!+ ( )+ " 0 < + * + !+ + %+ X 3 '( 3 ' " !+ - ~ + , Olefins, Polymers, EO-Based performance and Oleochemicals

(FRQRPLF 5HVSRQVLELOLW\ Innovation is vital to PTT Chem Group. With “chemicals come alive through innovation� as our brand testament, it grooms us in sustainable product development and production especially in energy conservation, CO2 gas reduction via innovation, and other new technologies for Olefins, Polymers, EO-Based performance and Oleochemicals.

, # )$" # #. .'# 6/ ! . !# (FRQRPLF 'LVWULEXWLRQ WR 6WDNHKROGHUV + Item

2552 ( > ) 2553 ( > ) 2009 (Million Baht) 2010 (Million Baht)

* 7 * * Investments and expenditures regarding social and community development

31

40

* ( - ! + Environmental investments and expenditures

42

39

%5 )+ - ! )1 # - Dividend to shareholders

3,000

4,760

9 > - ! J( + !+ - # Taxes to government and local government authorities

1,723

968*

992 (708 )

1,118 (879 )

4,975

8,275

3 / # ( ) Local purchasing (Rayong) Total

* % 8 9 > " ( + ( + %_ 2553 736 + ( * Significant estimated value of aggregated BOI tax relief in 2010 is 736 million Baht

&6 , & " (19,5210(17$/ 6281'1(66

43

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& " (QYLURQPHQWDO 0DQDJHPHQW

+ ( > %" . + " - #$ () * (" 1!+ > ! + $ - 0 ( %{ - + ' !+ ! ( - ! + "+ % *= 7 %& -+ 0 * ! % 9 * 2 2 >J (Eco-Efficiency) %& * * / % )+ ! + ) 8 )1( - ( 1 , ( > (Top Team) 3$ )1 -= %& % /!" + 0 * * / + % ! ( - ! + , 0 0 - %& !) / / !+ / " " " ) % * , !" + + 3$ )1 -= , !" + + %& %

PTT Chem Group is fully aware of its responsibility to the environment; PTT Chem Group has therefore defined environmental policy, mission, strategy and approach in the light of Sustainable Development principles. At PTT Chem Group, we adopt Eco-Efficiency as corporate level indicator to monitor our overall performance in environmental aspect. The indicator is tracked and reported to Top Team management of PTT Chem Group, which is chaired by CEO. Each operation plant is required to adopt this set of Eco-Efficiency indicators and determine their own environmental management plan via short and long term plans with monitoring in Value Chain committee meeting with the vice president as chairman.

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Tracking and reviewing the suitability of the plans to economic, social, and environmental concerns are implemented via the Balanced Scorecard Monitoring session, with top management as attendees and the CEO as chairman. The session is held on a monthly basis.

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!+ ! + "+ - %+ 9 *

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The Safety and Environmental department, under Operational Excellence, has main responsibilities to enforce, advice enterprise-wide environmental plans, observe and correct their respective outcomes. For effectiveness, QESH organization delegate responsibilities to following units, QESH Audit, Environmental Service, Crisis and Security Management Service, Group Quality System Service, ESH Enhancement Center and ESH Services for each Value Chain.

Sustainability Report 2010 PTT Chemical Public Company Limited

44

/ + ( > %" . + $ # %: (" " , - !+ ‚- ! + %& " J , / " %_ ) + ( > %" . + + " ‚- - %& $ * - % ( %: ( " - + , - " ‚- ! + / /

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%: (" " ) ( (( " J + - (#

PTT Chem Group strictly complies with the environmental regulations as business protocol. In 2010, PTT Chem Group conducted its business in compliance with the regulations and consequently there were no fines for non-compliance with environmental regulations. Our environmental and safety management systems are aligned with ISO 14001 standard and OSHAS 18001 standard. Areas that are certified for such standards are olefins plant I-1 and I-4, Product warehouse and port branch, Bangkok Polyethylene Co., Ltd., TOC Glycol Co., Ltd. and Thai Oleochemicals Co., Ltd. PTT Chem Group aims to have all required operating areas to be certified to these management systems.

+ ( > %" . + + - #$ =, ' 9 " - " / ,$/ $ - !+ , % ( ( J * 7 0 ( !+ - ! , 9 " - )+ ‚- " ~

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PTT Chem Group realizes the importance of joining forces with public organizations and associations established by industrial sector. Hence, PTT Chem Group has joined public organizations and industrial associations, and taken significant roles in developing policy, industrial guidelines and relevant laws and regulations. Some positions taken are chaired by PTT Chem Group including Chairman of the Plastic Industry Club in the Federation of Thai Industries (F.T.I), Director Petroleum Institute of Thailand, Director of Thai Listed Companies Association and Vice Chairman of F.T.I. for the Institute of Industrial. In 2010, PTT Chem Group has worked closely with the Sub-committee for public hearing to develop the criteria on “the projects or activities which may seriously harm the community�

45

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Sustainability Report 2010 PTT Chemical Public Company Limited

46

& && 0 , 0 12 (FR (IILFLHQF\ 0DQDJHPHQW

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PTT Chem Group stresses the necessity of balancing eco system conservation and economic growth. In practice, the group adopts Eco-Efficiency principles to prevents and lower pollution in production processes from raw material usage to continue developing alternative approaches to use natural resource more efficiently with less effect to the environment and surrounding communities, while maintain business competitiveness.

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PTT Chem Group adopts United Nations’ Manual for the Preparers and Users of Eco-Efficiency Indicators in the development of corporate level indicator. We have begun collecting data and monitoring our performance against the Eco-Efficiency set of indicators at Olefins plants I-1 and I-4 since 2008 and expanded to other Value Chain in 2010 with plans to cover all plants in 2011.

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Currently, monitoring of environmental performance of PTT Chem Group under Eco-Efficiency consists of the following aspects: (1) Water resource management, (2) Energy consumption and conservation, (3) Greenhouse gas, air pollution and waste management and (4) Eco-friendly product development. Eco-Efficiency indicators consist of Water Consumption, Energy Consumption, Global Warming Contributions, Wastewater Generated, Solid Waste Generated and Ozone Depleting Substances. Performance of Eco-Efficiency indicators in this report are from olefins plants I-1 and I-4.

47

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& )# :DWHU 5HVRXUFH 0DQDJHPHQW

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9 " + ( > %" . + " - #$ * / - % 9 1 0 )+ (" ! + !+ * * $ !+ 0 ( - / 0 ! %& 3 -+

Water is a crucial component to the chemical business. With domestic water resource problems in the past, effect to both environment and business were eminent; consequently, PTT Chem Group has initiated water resource management projects with 3 main factors which are:

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Water resource management in Rayong PTT Chem Group has collaborated with the water resource management in Rayong working team, the collaboration among government agencies, private and industrial sectors, to found the operation center for an integrated water management. Measures have been defined to monitor water-shortage issue caused by drought and manage water quality in Rayong province. Our proactive approach to water management aims to prepare and tackle water-shortage issue in future, which could affect the water use of communities and industrial sectors.

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Water resource management in production process Since 2006, PTT Chem Group has continuously strived to conserve water resource by 4Rs concept; consisting of Reducing, Reusing, Recycling and Reclaiming, to maximize the water use effectiveness. Examples of initiatives are increasing cooling water cycle and the capacity of Reverse Osmosis (RO) unit. To reserve surface water and use natural resource worthily, PTT Chem Group has installed desalinated water production system to use seawater as an alternative.

/ + ( > %" . + + * / !+

% 9 * / - ,$ / %5 ( !-+ / (, ( > + %" . + ( / !+ ( / - %+ -+ 3$ 0 , , / ( * / / - !+ *+( / ( / , 9 * " ~ %& 2 9 !+ (% 8 * / * Â’" / !+ " 0 ( , + ( > %" . + ( - / * ( )+ " - # " % 0 (" !-+ / * % 09 ( 09 !+ >" , % * *

In addition, PTT Chem Group continues to reduce our water consumption and increase the efficient use of water. Currently, PTT Chem Group has raw water sources including Dokkrai and Nong Pla Lai reservoirs and reserved private water sources which are connected to other reservoirs in Rayong province and Chonburi province, including other private reservoirs to ensure our capability to cope with water crisis period. PTT Chem Group is committed to efficient management of our water to ensure the continuity of our production without affecting the water consumption by local communities.

Sustainability Report 2010 PTT Chemical Public Company Limited

48

!) -+ % 9 * / Capacity )+ " / , - Reverse Osmosis (RO) 0 0 +‘‰ ' , # -- $ 3$ #+ * / # $ 249,304 +(. .

Our key achievement to increase efficient of water usage is the project to increase the capacity of Reverse Osmosis (RO) unit at I-1 olefins plant, which has resulted in reduction in water withdrawn from nature (raw water) by 249, 304 m3.

(3) _ _

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) ( )+ " 89 / 8 9 " J - / ( > / / + ( * - (Recycle) #$ 30% 0 ) ( % (% 89 / Reverse Osmosis (RO) 0 %_ 2553 ) # + % 8 / / 365,106 +(. .

Water discharge management To ensure there are no significant impacts on the environment, all wastewaters from production process have to be treated and controlled in accordance with the regulatory standards before discharging to the industrial estate receiving canal, Klong Chag Hmak. PTT Chemical wastewater treatment plant installed the online monitoring equipment to measure the quality of water discharge, Chemical Oxygen Demand (COD) and Total Dissolved Solid (TDS). Moreover, the other parameters for controlling discharge quality are monitored on a daily basis the laboratory certified to ISO/IEC 17025:2005 standard. The monitoring results of water discharge are better than regulatory standards. In 2010, PTT Chem Group can recycle water discharge up to 30% via Reverse Osmosis (RO) and reduce water drainage up to 365,106 m3.

6 , !"- - \U + ; . - " . - !" :DWHU &RQVXPSWLRQ DW , DQG , 2OHILQV 3ODQWV

^Z> _ Water Consumption Rate [m3/ton olefins]

2007

10.76

2008

11.72

2009

10.83

2010

13.25

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49

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) 1+) ] 3 $

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As an excellent petrochemical business with social responsibility, PTT Chem Group is determined to integrate energy efficiency and conservation as one part of our business plan. Moreover, energy efficiency and conservation can serve as an effective way to reduce carbon dioxide (CO2) and greenhouse gas emission as well.

) 1+) + ( > %" . + - = ( * + % 9 1 / + * + 0 * % 8' % 9 1 / ( > % 8'" ~ - 1 9 * 1 "+ 2$ > !+ 7 (( + - + ( " J + " ( 1 ( " $ * + (

(QHUJ\ 0DQDJHPHQW DQG &RQVHUYDWLRQ PTT Chem Group sets a high priority on energy efficiency maximization, which includes high efficient equipment and preventive maintenance to ensure availability. Moreover, we support research and adoption of energy management in line with international standards, while promoting energy saving awareness for all its employees.

%5 ( ( > + ( > %" . + * X 3 * " (Natural Gas) X 3 * / + 3$ %& )+ + ( )+ " (Byproduct Gas - Tail Gas) !+ / * / + (Fuel Oil) )+ " + / ( ! ‘‘{ !+ / %& + - ( * ( )+ " 3$ %_ 2553 >'!+ * + / " !+ % 9 " / / !) = + , ( > + %" . + % (

Currently, primary energy sources consist of natural gas, byproduct gas or tail gas and fuel oil, while electricity and steam are received as secondary sources. In 2010, our key achievements in energy conservation are highlighted as follows:

, ) ' : < ) / • ( KEV (Key Energy Variables) - " !%

, ( * + ( )+ ", 0 0 +‘‰ ' , # -- $ - 1 " / * ( % excess oxygen - 2.05 3$ #+ * + #$ 197,123 KWH " %_ ( (%_ 2552 • + 1= + Flare (Flare Loss Management) 0 X 3 * / + -+ )+ "!+ , - + 1 ( )+ ", 0 0 +‘‰ ' , # - 3$ # + 1= + # $ 92,874 MMBTU " %_ • + % 8 ( X 3 * / + (Fuel Gas Import) 9 )+ " + * ( )+ ", 0 0 +‘‰ ' , # - Maximize !+ * X 3 * / + ) + "

(IILFLHQW 2SHUDWLRQV • Control Key Energy Variables (KEV) in Olefins production at I-1 olefins plant, such as control % excess oxygen to be less than 2.05, resulted in energy reduction of 197,123 KWH per year. • Flare Loss Management in Olefins production at I-4 plant can reduce energy loss up to 92,874 MMBTU per year. • In-process gas management in olefins process at I-4 plant, resulted in fuel gas import reduction of 7,656 MMBTU per year. • Improvement was made thermal efficiency of cracking furnace in I-4 olefins plant, which resulted in reduction of energy consumption for 53,133 MMBTU per year.

Sustainability Report 2010 PTT Chemical Public Company Limited

( )+ "! * * / + , ( > %" . ( - * ) 3$ #+ 1= + #$ 7,656 MMBTU " %_ • % 9 * (Thermal Efficiency) , " !" 0 + + (Cracking Furnace) , 0 0 +‘‰ ' , # - 3$ #+ * + #$ 53,133 MMBTU " %_ • + 1= / Steam trap 0 " ( !+ 3 %+

Steam Trap %& " %_ 2552 3$ #+ * + 149,938 MMBTU " %_ • + * + ((- -+ (Cooling Tower) 0 %+

( , + ( (Cooling Fan) %& * % - + 0 #+ * + ‘‘{ %& 207,090 kWh " %_

50

• Steam trap survey program has been conducted since 2009 to reduce steam loss for 149,938 MMBTU per year. • The change of cooling fan in cooling tower resulted in electricity reduction of 207,090 kWh per year.

6 , ) !"- 6 - \U + ; . - " . - !" (QHUJ\ &RQVXPSWLRQ DW , DQG , 2OHILQV 3ODQWV

^Z>? Energy Consumption Rate [GJ/ton olefins]

51.72 2007

39.95 2008

37.98 2009

53.09 2010

- -" : " * + " - 0 +‘‰ ' %_ ) 1 ,$/ %& )+ )+ "9 8Z'0 +‘‰ '+ + ( , , % 8 "# ( #$ - 3 ( , - )+ " 1 , 0 , # - %_ 2553 Remark: Rate of energy consumption per ton olefins in the past year was higher due to production turn down from raw material limitation and turn around at production unit#1 of olefins plant I-4 in 2010.

51

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] 3 $

*UHHQKRXVH *DV

+ ( > %" . + " - #$ =, %5=- %+

!%+ , 9 91 20+ %+

X 3 $ !+ - =" ! + - X 3 / ,$/ 0 " * * + / + ( > %" . + $ >' + %& / J = !+ 2$ > ! ~ * + %+ X 3 %+ 1 ( 2

PTT Chem Group realizes the importance of greenhouse gas emission that causes climate change, the global issue. It is determined to reduce greenhouse gas from its main operations, such as energy utilization and study other approaches.

/ + ( > %" . + %

%+

!%+ 9 91 20+ ( %5 (

%+

!%+ 9 91 2 )+ (" , + ( > %" . + " !) %{ )+ ( ,$ / " $ % (% * + 3$ %& !-+ X 3 -+ - % 9 1 " * + / , Decoke + * / * / + (Fuel Oil) 3$ %& * / + - X 3 ( =* X 3 (Green house Gas Inventory) "+ " %

!+ 0 %+

!%+ 9 91 2 )+ (" '

The group has evaluated risks for its activities due to climate change, the result has revealed no significant impact from climate change to its business. However, to prevent the impact in the future, it has continuously strived to improve energy usage; the main cause of greenhouse gas from our types of business, such as decoke time and fuel oil use reduction, conduct greenhouse gas inventory and prepare the assessment of climate change risks and opportunities for the group business in long term.

+ ( > %" . + ( =* X 3 (Greenhouse Gas Inventory) " PTT Greenhouse Gas Accounting and Reporting Standard 3$ " IPCC 2006 (U.N. Intergovernmental Panel on Climate Change) !+ ISO 14064 -1:2006 0 !+ 0 0 +‘‰ ' , # -- $ !+ - 9 %_ 2011 !+ -+ / ( #1 " 0 %_ 2011 !) ( + 0 + ( > %" . + 9 %_ 2011 "+ - ( #1 " 0 - 9 %_ %_ 2012 ( #1 " 0 - 9 / , ( " (( " J + - ISO 14064-1:2006 / + ( > %" . + , )+ % X 3 , ' %& )+" , (Scope 3 * # "' ( %& " !" ‘‘{ - / 0 %+ %+

X 3 / %_ 2009 %& 929.99 '( 3 ' ( (ton CO2 eq)

PTT Chem Group adopts PTT Greenhouse Gas Accounting and Reporting Standard, which is aligned with IPCC 2006 (U.N. Intergovernmental Panel on Climate Change) and ISO 14064 -1:2006 to report Greenhouse Gas Inventory at Olefins plants, I-1 and I-4. PTT Chem Group aims to expand the scope of greenhouse gas inventory to all plants in 2011. Moreover, it plans to have verification conducted by internal and external party in 2011 and 2012, respectively, and obtain certification to international standard ISO 14064-1:2006. In addition, PTT Chem Group has expanded the scope of GHG management to cover scope 3 GHG emissions from indirect energy use (e.g. transportation via vehicles and plane however, excluding indirect emission from imported energy). These relevant indirect greenhouse Gas emissions in 2009 is 929.99 ton CO2 eq.

Sustainability Report 2010 PTT Chemical Public Company Limited

52

0 % 8 %+ X 3 %+ 1 * / ( 2 GHG emission from I-1, I-4 olefins plant is shown in table below 0 0 +‘‰ ' , # -- $ !+ - ! 1 " " % / 6 ' # ] 3 $

7DEOH RI *+* (PLVVLRQ

+ \ :

GHG Emission

0.206 t-CO eq/ton2

(t-CO2 eq/ton Olefins)

I-1

2551 2008

0.990 t-CO2 eq/ton

2552 2009 0.170 t-CO2 eq/ton

I-4

2551 2008

2552 2009

0.271 t-CO2 eq/ton

2553 2010 0.928 t-CO2 eq/ton

2553 2010

0.996 t-CO2 eq/ton

+ : - " %+ X 3 " - 0 +‘‰ ' %_ ) 1 ,$ / %& )+ )+ "9 8Z'0 +‘‰ '+ + ( , , % 8 "# ( #$ - 3 ( , - )+ " 1 , 0 , # - "+ + ( ! ‘ %& "# (! 3$ ! ‘ %& ›0 '( 0 + + -= - X 3 (" " "# ( X 3 * " - % 8 %+ X 3 8 + + ( > %" . + * 0 ) )+ = * / + - X 3 ! X 3 '( 3 ' (CO2) (CH4) !+ " 3 ' (N2O) 0 + ,$ / 18 Emission Factor %& ( , X 3 '( 3 ' (CO2) ! X 3 3 * ,$/ / - Remark: - Specific GHG emission per ton olefins in the past year was higher due to production turn down from raw material limitation and turn around at production unit#1 of olefins plant I-4 as well as raw material swap to Naphtha that generates GHG emission per ton of raw material much more than natural gas. - Specific GHG emission per ton olefins is calculated from energy consumption and converted to carbon dioxide (CO2) methane (CH4) and nitrous oxide (N2O) from fuel combustion by multiplying energy value with the emission factor of each gas type.

- ' / '[ )$" ' ] 3 $

( 89 )+ " + )+ (" ! + !+ + ( > %" . + + - #$ =" ! + %+ X 3 %+1 %} 3$ - %& %5 =" * " , * " * !-+ )+ "!+ ( / * " !+ " * 1 3 ( X 3 / + ( > %" . + $ 0 %+1 %} + % 8 X 3 9 ~ 0 ,

5HIRUHVWDWLRQ SURMHFWV DUH DOVR LPSOHPHQWHG FRQFXUUHQWO\ WR UHGXFH JUHHQKRXVH JDV Not only pollution prevention from production process, but reforestation is also necessary. Forest can reduce greenhouse gas, reserve water and absorb air emissions. Hence, PTT Chem Group is committed to reforest in all operation areas.

53

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] 3 !# !# $LU (PLVVLRQV DQG :DVWH

] 3 !# + ( > %" . + * + ) + " X 3 * " %& -= 3$ - %+ X 3 '( 3 ' (CO2) 1 ( 2 % 8+ + !+ ( ( ( * * / + / " ) )+" + %+ %+ X 3 3 + ‘ ' 3 ' (SOx) 0" 3 ' (NOx) !+ 4 }

/ % (% + % 8 %+ 0" 3 ' (NOx) ( )+ " 0 " " / - ) % 9 1 (Ultra Low NOx Burner) 3 " 3$ * + %+

0" 3 ' #$ %_+ % 8 9.78 "

$LU (PLVVLRQV The majority of our energy consumption comes from natural gas, which has low level carbon dioxide (CO2) emission in comparison to the use of fuel oil. Thus, this has resulted in reduction of Sulfur Dioxide (SOx) Nitrogen Oxide (NOx) and particulate matters emissions. Additionally, PTT Chem Group has continuously determined to improve our production process by installing 3 ultra low NOx burners resulting in 9.78 ton of NOx emission reduction.

- + %+ X 3 '( 3 ' (CO2) X 3 3 + ‘ ' 3 ' (SOx) 0" 3 ' (NOx) !+ 4 } 1 ( 2!+ + ( > %" . + - = ( ( !+ + %+ ' - (VOC) 0 ( - % 8 %+ ( ' - / % : (" 1 ( " J % 8' ( % ( ' - "+ (( " 3$ " ( !+ % 8' 3$ %& % "+ / + ( > %" . + 0 + ( > %" . + ( =* ' - (VOC Inventory) " PTT VOC Inventory Standard 0 !+ 0 0 +‘‰ ' , # -- $ !+ , # -

!+ !) " " , + )+ "

PTT Chem Group also pays attention in managing volatile organic compound (VOC) better than regulation standards by inspections of site area, equipment and machines and periodic monitoring for any leakage of VOCS for further improvement and reparation. PTT Chem Group adopts PTT VOC Inventory Standard which is in line with international standards (USEPA) to establish VOC Inventory at Olefins plants, I-1 and I-4. PTT Chem group plans to expand its VOC Inventory to cover all plants by 2011.

/ %_ 2553 ) % (% + % 8 %+ ' - (VOC) 0 !) ( )+ "0 +‘‰ ' " % / • " " / "1 1 - (Hood) (%‰ %5 Âœ * < Dimethyl disulfide (DMDS) 3$ * + %+ ' -

• " " / -+ 0 (Dome Roof) - (( ( /

(Equalization Tank) , ((( ( / * 9 " % • " " / + !(( * # (Carbon Canister) ( 8( , ( / % %“” ›0 '( 3$ * + %+ ' - - - + + %&

In 2010, VOC improvement projects were conducted in olefins plants as illustrated: • Hood installation at Dimethyl Disulfide (DMDS) pumps. • Dome roof installation at equalization tank. • Carbon canister installation at the sumps of Hydrocarbon contaminated water drains.

/ / " 4{ % %“ ” , ' -

(VOC) !+ / " 0 " VOC / " ~ 3 3$ )+ " ( VOC / " !"

To monitor VOC contamination in soil and ground water, the group conducts VOC measurement in ground water quarterly and found nothing abnormal.

Sustainability Report 2010 PTT Chemical Public Company Limited

#, - -3 + ( > %" . + " - #$ =, %5=- + * / 0 03 3$ -= %& * (( ( + !+ (( - ( (( ( + + ( > %" . + + * FM-200 3$ %& - + * / 0 03 (( , # + ( 8 ( | + * R-22 3$ %& - + * / 0 03

0 " * R-22 + + %_ 3$ % (% % 8'!+ +' " ~ - % 9 1 " + -+ !+ %& * + %+ + * / 0 03 % + 1( 2

Ozone Depletion (, - Jetty) " " Ethylene transfer Ozone depletion (Jetty) per ton Ethylene transfer (kg CFC-11 eq/ton)

0.0150

2008

54

2]RQH 'HSOHWLQJ 6XEVWDQFHV PTT Chem Group foresees the impact from the use of Ozone Depleting Substances (ODS), which are mostly used in fire extinguishers and refrigeration system. Our plants use FM-200 as substitutes for ODS. For our jetty, where there is the largest use of cooling system for ethylene transferring, we use R-22 refrigerants. In addition, we implement periodic inspections of equipment and valves for further improvement and reparation prevent any leakage ODS emission.

0.0127

2009

0.0037

2010

!# + !+ %{ )+ (" ! + ,$ / ( - , ( )+ " + ( > %" . + $ $ # " ‚- %& " J , / " ( - , 0 ) , , + ( > 0 %45 +(" -+ , 9 ( + - % ( # , " 45 +( !((%+ 9

/ ) ! % 9 % * 3/ 9 (Reuse/Recycle) % * %& "# (- * / + ! / * / + ) #$ * 3 / !+ + ( * - 9 ( > / / , ,$/ / - #1 % %& " " ! + 0 ( > , ( = "#1 " " ‚- 3$ % 8, " " - )+ " % 8+ + ~ " / !" %_ 2550 %& "

:DVWH To reduce and prevent the environmental impact, PTT Chem Group adopts legal compliance as minimum requirements in waste management. PTT Chem Group practices waste management with proper approaches; such as, sanitary landfill or secure landfill with waste stabilization, incineration, reusing and recycling; managed by licensed waste disposal vendors. Moreover, our specific waste generation per production unit has continuously declined since 2007.

/ + ( > %" . + $ - - %{ -

( Oil sludge , - 0 +‘‰ ' , # -- $ " " )+ "9 8Z' !+ Bio + Oil sludge , -

0 +‘‰ ' , # - " " )+ "9 8Z'

In addition, PTT Chem Group has defined targets to control specific wastes from our plants as follows: specific Oil sludge (Olefins Plant I-1) per ton Olefins Plant I-1 and Specific Bio + Oil sludge (Olefins Plant I-4) per ton Olefins Plant I-4.

55

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Sludge !" - 6 - \U + ; . - " . - !" 6OXGJH *HQHUDWLRQ DW , DQG , 2OHILQV 3ODQWV

5.58

Sludge Sludge Generation (kg/ton Olefins)

I-1

2008

1.05

2009

2008

2010 0.43

0.27

0.21

I-4

0.59

2009

!+ + )+ (" ! + , + ( > %" . + $ - %{ - + % 8 , %45 +( %& 21 ' (Zero Waste to Landfill) 9 %_ 2558 !+ - ( - , ( + %{ - + $ !" " / 8 , " - + ( > %" . + (PTTCH Group-Waste Management Committee) 3$ )1 -= % 9 %: (" %& % !+ )1 , !" + + / )1 ( - , -

, %& 8

2010

For our overall waste management, PTT Chem Group is committed to the target of “Zero-waste to Landfill� by 2015. To achieve the target, waste management committee; having value chains’ Executive Vice Presidents as attendees and the Executive Vice President of Operational Excellence as a chairman, have been appointed to govern implementation and track performance.

Sustainability Report 2010 PTT Chemical Public Company Limited

56

) * 6 < ^+ !" '4 " (FR )ULHQGO\ 3URGXFW 'HYHORSPHQW

) * 6 < ^+ 7 )+ "9 8Z' 2 9 !, , "+ !+ 2 >J , % 2 0 " - = , )+ (" " ! + !+ )1 * - " !+ 0 0+ , %" . + $ % (!" + + 7 )+ "9 8Z' %& " " ! + !+ )1 ( 09 0

9 5-10 %_, - %" . +" / %{ %& )1 )+ " )+ "9 8Z' %& " ( ! + (GREEN PRODUCT) , 0+

3URGXFW 'HYHORSPHQW PTT Chem Group is committed and devoted in keeping pace with the innovation for environment and user to line with the market trend. Therefore, Science and Innovation Centre (S&IC), has collaborated with each value center to research and develop environment and user friendly products. PTT Chem Group aims to be the global leading in green products in next 5-10 year.

%5 ( + ( > %" . + 7 )+ ")+ "9 8Z' 0 + 0 3$ * " # ( -+ * " / % +' / + % +' / * !+ , " ' - ()+ " + " ' (Methyl Ester) 3$ * - ()+ " / 3+* 9 - (0 3+ (Biodiesel) !‘"" !/ + › +' (Fatty Alcohol) !+ + 3 (Glycerin) !/ + + ( > %" . + 7 98 Z' - (Renewable Chemical) , !+ ! + 0 + ( > %" . + %‰ 21 ' " !+ 0 0+ 3$ %& 21 ' !+ 7 %‰0" !+ 98 Z', -= !- ! , % 2 - = ( 7 " !(( %‰ (Open Innovation) 0 ( " % ( % 7 2 " '!+ 0 0+ !- * " ( *.) - + ! ‘ { -+ + %‰0" + !+ %‰0" Â&#x; + 8' - + !+ - + - + !+ / % 0 * '3 $ !+ 1%!((, , " ' " / " " 2 9 1 )+ " * 8 * '

Currently, the PTT Chem Group has business dedicated to oleochemicals or natural chemical products, which are produced from natural materials like palm oil, palm kernel oil, vegetable oil and animal fat. The products include methyl ester, used in Biodiesel production, fatty alcohol and glycerin. Moreover, PTT Chem Group has opened its own S&IC, Thailand’s first petrochemical and chemical research and development centre to develop renewable chemicals that contributes to social and environmental sustainability. PTT Chem Group also realizes the importance of development the open innovation by collaborating with academic alliance like National Science and Technology Development Agency (NSTDA), Mae Fah Luang University, the Petroleum and Petrochemical College Chulalongkorn University and Mahidol University.

- $ 0 + ( > %" . + ( 7 2 " '!+ 0 0+ !- * " ( *.) 0 + - (Micro-Algae) 3$ 2$ > 7 " / !" (" / + / + - - % 9 1 0 7 (( + / / ! , 2 " '* 9 !+ 2 %#$ ! '( 3 ' - CO2 * - "+ 7 (%+ / * / !+ =" ~ + - !+ , - - % 0 * ' 1 %& "

Micro-Algae project, one of its collaborated research projects with NSTDA, is studied from upstream to downstream phase. Upstream phase consists of micro-algae culture system development with biological science and engineering approaches including highest Carbon Dioxide use in Photosynthesis, while downstream phase is to develop micro-algae utilization, such as oil and essential substances extraction and other use from its residue.

57

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/ + ( > %" . + !) , - " ( " )1 ( 09 )+ " + " * 9 0 (( > %" . , !+ 2$ > ( ( > * / " % 2 0 0+ !+ %& %" " J + )+ "0 + !+ " ! 3 - Polylactic Acid (PLA) !+ 0 + ( + 3 3 " - Polybutylene Succinate (PBS) 3$ %& 0 + ' - ()+ " + " * 9 0 )+ " "# ( >" * / " + !%{ , 0 !+ % -+ 3$ -+ " % 2!+ + ( > %" . + !) 0 0+ + % 2 3$ # %_ 2557

In order to satisfy consumers requirements on bioplastics, PTT Chem Group and PTT plan to form a joint venture with reputable oversea company to study the production of Polylactic Acid (PLA) and Polybutylene Succinate (PBS), bioplastic polymers from sugarcane, corn flour and tapioca. This bioplastics technology is expected to start running in Thailand in 2014.

!" 7 )+ "9 8Z' - ~ / + ( > %" . +

- = ( 7 )+ "9 8Z' 1 !+ - ( - %& " " ! + !+ )1 * " " J + 0

%_ ) 7 89 , 0 + + - ! 1 (HDPE) 0 + + - ! " (LDPE) * + - ()+ " ( 9 8Z' * 4 , !+ # #$ + ( !+ 0 + + - ! " * (LLDPE) - )+ "9 8Z' InnoPlus LLDPE - 8 ( " ) " " J , 0 + + * - ( ) - 3$ %& , - #1 ( 0 ' - !+ - J (U.S. FDA) / 8 ( ") " , - , " J RoHS (Restriction of Hazardous Substances) 3$ %& " J

( - % 8 " = " - 1 + + ' # ( %& (% 89 )+ "9 8Z' -+ / %+ 9 " )1 * !+ * " )+ " %& " " ! +

PTT Chem Group also has a mission to adopt and apply internationally reputable standards in developing the existing products to be friendly to environment and users. In 2010, High Density Polyethylene (HDPE) and Low Density Polyethylene (LDPE) resins for package grade and Linear Low Density Polyethylene (LLDPE) or InnoPlus LLDPE resins have achieved compliance with 2 international quality standards. The first one is the Food and Drug Administration (FDA) specifications according to U.S. FDA 21 Code, which allows for Polyethylene unmodified used in articles that contact food. The other one is RoHS (Restriction of Hazardous Substances). This to ensure that our products are safe and suitable to be used as the food contact article as well as produced with no hazardous substance in process.

/ / - !) % : * " (Life Cycle Assessment) - ()+ "9 8Z'0 + + - ! 1 (HDPE) !+ " , - ! %: ( " - ( , - ! %: (" 1!+)+ "9 8Z' (Code of Management of Practices: Product Stewardship) , Responsible Care 9 %_-

In line with PTT Chem Group CSR Framework, we are developing Product Stewardship Process inline with Responsible Care-Product Stewardship Code of Management Practices which social and environmental consideration wil be considered throughout the product lifecycle. Thus, PTT Chem Group plans to conduct life cycle assessment for High Density Polyethylene (HDPE) and code of management compliance for product stewardship practice from Responsible Care in 2011.

Sustainability Report 2010 PTT Chemical Public Company Limited

58

) ) / + ( > %" . + " - #$ = !+ $ * )+ "9 8Z'!+ ( , +1 $

> !+ 7 89 , )+ "9 8Z'!+ ( ( - " (0" (+1

&XVWRPHU 6DWLVIDFWLRQ PTT Chem Group is aware of importance of confidentiality and satisfaction of product and service provided to customers. Therefore, we commit to sustain and develop product and service quality within acceptable price to make business growth with our customers.

~ %_ + ( > %" . + $ , +1 " " - " !+ +1 - = 3$ 8 $ 89 % 8 !+ , )+ "9 8Z' - ( ( , , ( ( - , "+ ( -+ , / - * !+ (, 1+ - - ( + , +1 * ) " " (Observe), 9 >8' ( + (Personal Interview), 9 >8' + (Focus Group), (# 0

* !(( (# - (Standard Form) #1 7 ,$/ - - !+ ) - * ( 8 ( - +1

Customers’ satisfaction is conducted annually to follow-up expectation and determination to maintaining and developing our product and service is critical to growth. To improve customer satisfaction, we measure vital aspects of Product Quality, Quantity correctness, Pricing, Service, Shipment, Sales staff service level, Quality of documentation and service provided, Payment process, Complaint handling and After-sales service. Mechanisms to measure satisfactions are through observation, Direct Interviews, Focus Groups, and Survey Forms.

0 %_ 2553 )+ $ , +1 (Customer Satisfaction Index) , !" + + ( %& %" %{ -

80% 0 + /

In 2010, the PTT Chem Group sets customer satisfaction index by each business line at 80% target, results are shown in the table below:

59

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90 % 87 %

/ ! ; <' < $J Olefins & Shared Facilities

/ # $%' !? ' Polymers Products Value Center

92 % 83 %

/ # $%' " @\ ' EO-Based Performance Products Value Center

/ # $%' ! "! " Oleochemical Products Value Center

/ - , +1 " 9 + >8' * ' !+ $ " ~ 0

)+ ( (, + +1 " 9 + >8'!+ * ' 83.9% 3$ 1 %{ - " / 80%

On top of the above measurements, PTT Chem Group measured satisfaction in areas of corporate image, brand recognition and other satisfactions with 83.9% satisfied beyond the 80% target set.

7 " + ( > %" . + 7 89 !+ -+ -+ - ( 0 0+ !+ % 9 * (( B2B E-Ordering !+ E-Payment %& "

Continuous improvement in using technology is an integral part of PTT Chem Group projects, such as B2B E-Ordering and E-Payment are among beyond-standard initiatives.

( > | , ( " J )+ "9 8Z' %& -

* . 816-2538, U.S. FDA 21 CFR 177.1520, RoHS Directive 2002/95/EC %& " - )+ "9 8Z' " , - , 1+, )+ "9 8Z'3 $ ( + #$ % (!+ %+ 9

+ ( ‚- - " J + * ) Material Safety Data Sheet (MSDS) !+ - , 1+

( )+ "9 8Z' * ) ( 3"', ( >

To ensure that all of our products subject to information requirement are in line with regulatory requirements and international standards, we adopt various standards including Thai Industrial Standard 816-2538, U.S. FDA 21 CFR 177.1520, RoHS Directive 2002/95/EC, etc. Examples product labeling and communication include Material Safety Data Sheet (MSDS), which apply for all of our chemical products in markets; and communication via our website. Examples of information provided include product contents, safety and disposal.

Sustainability Report 2010 PTT Chemical Public Company Limited

60

/ + ( > %" . + " *( == " () " - ,$ / %+ 9 "+ - 1 " !+ + ' - , “ " " (0" � (Partnership-Our Drive to Sustainable Growth) - ( + +1 -+ , ( > / % 0 * ' 1 - (+1

Moreover, the PTT Chem Group has developed online systems, which provide product traceability and safety information according to Product Liability Act. “Partnership-Our Drive to Sustainable Growth� is one of the group’s key events to share innovation and business strategies to business partners for mutual benefits.

%_ 2553 ) , ( > %" . + ( + ( ‚- - , - () " - ,$ / * %+ 9 - - , 1+)+ "9 8Z'!+ <+ ) %& "+ "+ !+ 0†>8 , ! ( ‚- , % 2 #$ , + , 1+ " , +1

In 2010, PTT Chemical was clear of penalty or fine due to violation of laws and regulations concerning responsibilities for damages caused by use of unsafe products and overstatement of product quality. The group’s marketing, communication or advertising did not encounter any Thai laws violation. Complaints about abuse of customer’s confidential information were none.

61

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? [ + + K +: K ^ ? ! +]: '? W <  K ‚  !+ + ' ? "_ At PTT Chemical Public Company Limited, we strive for chemical industry excellence, organization of innovation and responsible company under the principles of continuous improvement and sustainable development. Therefore, we commit to energy management through integration of energy conservation into our business process as follows: 1. '? W > "K / Z /J> /J> ƒ All levels of management and employees are responsible for energy conservation 2. „ + '? ^ > < ^Z>? Energy conservation targets is structured in accordance with energy application 3. ƒ … + "K "K+ > ' ? Energy conservation and management regulatory is follow 4. < # ? ^Z>? + :K Continuous improvement in energy efficiency 5. < ?+ _ $^ > ?"+ ? + " < # ? Manage sufficiently and efficiently for both human resource and budget _ "_ . ( Z ) ? ! +^ >? "< ^ ^ > W @ !+ + <:K < ^ >/J> "K+ > + K ] PTT Chemical Public Company Limited shall manage energy through employee involvement in archiving the target and communicate the result to all relevant parties. < K $ "K 2 … 2553

Effective on 2 July 2010

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(Mr. Veerasak Kositpaisal) President & CEO

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PTT Chem Group holds the highest standards towards its employee’s health and safety. This commitment also expands to cover our communities where we operate and the contractors working on behalf of PTT Chem Group. This year, PTT Chem Group is pleased to announce the winning of a prestigious award of best company in health and safety by the Ministry of Labour for the 13th consecutive year.

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PTT Chem Group is committed to risk management and controlling loss from accidents, occupational health and workplace management, while promoting our staffs to have healthy life and happy workplace. PTT Chem Group emphasizes on process safety through personal awareness, training, communication and root-cause analysis to promote safety in workplace. PTT Chem Group seeks to reduce the Incident Rate (IR): Total recordable cases of non-fatal occupational injuries and illness, by focusing on improving the control and preventing occupational injury and illness. Thus corporate-wide IR reduction target will be set in 2011 to monitor and evaluate the group’s overall performance in safety area.

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Management of occupational health and safety rests with our top management. Management supports health and safety programs with resources and promotes staff involvement in order to achieve and align the group’s goals continuously. Monitoring of Group’s occupational health and safety performance is implemented via management review induce continuous improvement. Legal requirements are minimum requirements to practicing health and safety at PTT Chem Group. PTT Chem Group adopts best practice and international health and safety standards to improve our performance in health and safety management. Highlights in our health and safety management are illustrated as follows:

Sustainability Report 2010 PTT Chemical Public Company Limited

66

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&RPPLWWHH SHE Committee has been appointed with the most senior management or appointed representative chaired the committee. The Committee members are from both management representative (employer) and employee representatives, which were kept not only to be legal complied, but also to drive continuous improvement through health and safety programs.

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The Committee delegated responsibilities according to working areas, which comprise of sub-committees in plants, Bangkok offices and Rayong Offices. Specifically, operational-level employee representative in all level of committees must not be less than 40% of all members to help effectively monitor and gauge any given program.

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PTT Chem Group adopts OHSAS/TIS 18001 in maintaining our occupational health and safety management system and delivering continual improvement in our performance. Our action plans and safety activities are developed to underpin occupational health and safety management system in accordance with OHSAS/TIS 18001, which spans from workplace risk assessment to action plans to, mitigate or control risks to acceptable levels. Monitoring and evaluating of performance is done through management review to induce continuous improvement.

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+LJKOLJKWHG 3URMHFWV DQG $FWLYLWLHV 5HODWHG WR 6DIHW\ DUH DV )ROORZV • Creating a Behaviour-Based Safety (BBS) culture The purpose is to grow safety conscious of our employees and foster safety as a part of organizational culture. We realize that often the root cause of most accidents occurs from personal behaviour, thus to prevent accident, it should start from personal behaviour.

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Training of employees to seek “At-Risk Behaviour� is the key to BBS. At-Risk Behaviour serves as anchor to observation, planning, methodology and measurement to eliminate and reduce such risks where it can be embedded into an organizational culture.

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In 2010, this initiative has been implemented at PTT Chem Group facilities at I-1 and I-4, Bangkok Polyethylene Company, TOC Glycol Company and PTT Polyethylene Company. It is expected to be implemented in all the companies in PTT Chem Group in 2011.

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• Process Safety Management PTT Chem Group emphasizes loss prevention from production process by introducing Process Safety Management to prevent impact from serious accident from the production process, which could have impact on employees and surrounding communities.

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Leading indicators and lagging indicators have been defined to gauge and measure production safety effectiveness on top of preventing unpredictable incidents. The past year, suitable indicators were studied at Bangkok Polyethylene, which is a pilot plant, when in 2011 the group plans to roll out group-wide.

Sustainability Report 2010 PTT Chemical Public Company Limited

68

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3URPRWLQJ &RQWUDFWRU 6DIHW\ Contractors are an integral part in PTT Chem Group’s growth; therefore, their safety, too, is sternly considered and supported. Safety training, audit, and suggestion are key collaboration to ensure similar level of safety to the group’s own practice.

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Together planning and implementations in regards to occupational health and safety helps PTT Chem Group realizes a new level of safety culture.

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/DERXU 5LJKWV DQG +XPDQ 5LJKWV Employee care is one of the most vital aspects PTT Chem Group accentuates. Health, Well -being, and employee families are cornerstones to the group’s success; this is stated lavishly from being ranked “Top Employers of Choice� under Industrial Products category through Thailand’s Top Graduates Employers survey by Quality Profile co., ltd.

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Beyond labour law and business etiquette, PTT Chem Group practices ‘Code of Conduct’ through prevention of discrimination, respect of human rights, fair compensation and remuneration, promotion and transfer, reward and punishment, employee interest club support, workplace environment management, and unbiased suggestion and recommendation hearing from all staff levels. The group does not support nor tolerate child and forced labour as well as violation to any employee rights to freedom of association.

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To realize the group’s determination, labour rights and human rights are entrenched in the PTT Chem Group CSR Framework. To facilitate implementation, 3 units are assigned to be responsible, which are Human resource policy and strategy office which is responsible for governance and setting directions; Human resource management and development office, which role is for shared services and resource office in each business unit. Welfare committee comprises of members, who are employee representatives, with roles to monitor and review employees’ quality of life, monitor safety of working environment, and arrange suitable and essential welfare for our employees and regularly review welfare arrangements to match social, economic and obligatory changes.

Sustainability Report 2010 PTT Chemical Public Company Limited

70

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We provide trainings to all employees to understand their rights in the company’s business code of conduct handbook including human rights since the first day of employment. The training also opens opportunity for questioning and suggestion for employee rights. We pay particular regard to the use of security personnel, thus our security guards must pass trainings according to the security guidelines, which include aspect on prevention of human rights violations when in duty.

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We have guidance in hiring and employee treatment which are in line with human rights principles, employment law and other relevant laws. As a result in 2010, the company has not received any complaints or lawsuit in regards to discrimination, under-age or forced labour, abuse freedom of association and collective bargaining.

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In case of any violations, employees can directly report to superiors, internal affairs and/or corporate office including any suspicious in regards to business partner dealings. Our commitment to human rights expands beyond our direction operations, to our service providers and contractors, by embedding our human rights practice as part of contractual arrangement.

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In 2010, we have challenging key plan to be inline with the Human Resource Policy as follows: 1. Human Capital Management (Leap) We developed Leadership Development Program as the management development plan and developed selection process to promote employee development through Talent Management Process. 2. Global Standard & Professional Shared Services To improve the current HR Shared Service and ensure readiness for the growth of the company and to be Global HR Shared Services Center in the near future. We worked

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with Deloitte Touche Tohmatsu Jaiyos Advisory to design, improve and provide recommendation regarding service delivery model and role & responsibility to suit with the new designed functions; process, regulation and job description; and software application The project duration is expected to be 18 months from August 2010 to February 2012.

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(PSOR\HH :HOO %HLQJ PTT Chem Group has a policy of having an equivalent standard in welfare and compensation to its peers and in compliance with law. Discrimination against any personnel towards social status or gender preference in performance, pay grade and bonus consideration is not tolerated. We provide employees both permanent and probationary status with welfares and monetary fund, such as moving and relocation expenses, accommodation, per diem, shift expense, standby compensation, overtime and weekend compensation expenses, meals and travel expenses, provident fund, social security, workmen’s compensation fund, life insurance and personal injury, health benefits, dental plans, childbirth support fund, annual checkups, blood workup and hepatitis B vaccination, housing loan, savings so-op, uniforms, death support fund, Employee clubs by interests, education fund for employee children and awards to employees with 10, 15, 20, 25, and 30 years service to the company.

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PTT Chem Group also established provident fund for monetary security to employees in occurrence of leaving the company or retirement by matching the employee’s contribution with 5-10% addition based on membership age. Payment of fund applies to all end-of-employment cases except firing case. The provident fund committee oversees the fund management and paid compensation according to the Thai law Section 118, including fund governs by social security.

Sustainability Report 2010 PTT Chemical Public Company Limited

72

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(PSOR\HH 3RWHQWLDO To ensure business growth and sustainable development, it is vital to ensure our employees potential development. We provide equal opportunities for competency development for every level of employees and skill set. Every employee must undergo annual performance and competency evaluation by their superior for career path and development planning. Talent management is one of the programs to groom high potential and exceptional employees in succession planning. For managerial level, Leadership Development Program is a driving element for us.

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Additionally, we have developed a training guideline for potential development in all staff levels with 2010 having at least 70.6 hours per employee.

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(PSOR\HH &DUH Although we consider ourselves as a thriving organization, but we also pay attention in balancing our employees work and personal life through various activities, such family day, children day and good health & happy life program. In 2010 PTT Chem Group has initiated projects to promote good atmosphere in the work place and enable employees to foreign readiness, such as English training course. Furthermore, health care, safety, work environment and compensation and welfare are fundamental yet significant to our employee care.

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Every year, employee satisfaction survey is conducted to learn and understand employee needs in order to set and continuously better the quality of work life.

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We have guidance in hiring and employee treatment which are in line with human rights principles, employment law and other relevant laws. As a result in 2010, the company has not received any complaints or lawsuit in regards to discrimination, under-age or forced labour, abuse freedom of association and collective bargaining.

Sustainability Report 2010 PTT Chemical Public Company Limited

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Responsibilities of duties and tasks Company, structure and procedure Satisfaction on supervisor Internal and external relationship Working environment Career path Compensation, welfare and activities Communications Performance appraisal Perspective on management from manager level Employee training and development

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Sustainability Report 2010 PTT Chemical Public Company Limited

Continuously dialogue with stakeholders relevant to PTT Chem Group business is a significant factor for achieving business objective. Therefore, PTT Chem Group develops a mission to response to both internal and external stakeholder expectation. Each function has to identify their stakeholders and engage their stakeholder in both company level and

facility level. Engagement has to be conducted continuously from before entering; construction phase to operation phase to ensure all stakeholders including community expectation has been considered in business decision. Method for stake holder expectation identification and stakeholder engagement are provided as follows.

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$ # > )+% 0 * ', % * * !+ * * "+ + ( ( ( , ( (, % 2 %& -+ $ - - ( (‘5 - 8 %& (( 3$ %_ 2553 + ( > %" . + - ( (‘5 - 8 16 / !+ - ( (‘5 %& " " J !+ %& + / $ (- 9 # !+ * = 3$ ( (‘5 - 8 (‘5 , ( ,", % * + !+ - % * * ( )+ !+ 2$ > , !+ ! - 1 * * ' !+ %‰ ( %& "

3XEOLF &RQVXOWDWLRQ PTT Chem Group has systematic public hearing process to ensure our business operation has been conducted carefulness, rightness and transparent considering the benefit of society and community and compliance with the national regulation. In 2010, PTT Chem Group has conducted public hearing for 16 times by an experience and qualified third-party to ensure the process is standardized and neutral. The process comprises of public scoping, focus group meeting, public review, education and building understanding on chemical process, community relations activity and open-house activity.

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;‹ Key concerns from public hearing %{ !+ " ( " -" < < Emergency prevention and response )+ (" ,9 Health impact * / Water availability %+ 9 #, Transportation safety

#

Local hiring + + ( / , " - Illegal industrial waste dumping

Response to the concerns * !/ !+ , (* * " %{ !+ " ( " -" < < Clarify and make understanding with community in emergency prevention and response measures. + % 8 ' - , ( > + Reduce VOC emission from the group’s facilities. + % 8 / * ( )+ " " Continuously reduce water use in the production process. == - - " + #, 3 (, 1 == - -" + #, 3$ (, 1+ # - * * ( - # - # ( #!+ ! - ( > ( ( Make a contract with waste contractors to install a black box in waste transportation truck which the velocity and route will be recorded. Community could also record the vehicle license plate for inform the company in case of complaint. 0 ( ( / , 20% , / - Receive local people to work for at least 20% of the total workforce as the policy. * ( > ( ( = "" ‚- 0 # ( , *( > ( ( 0 # ( ,

0 # ( ,

% " " GPS " ( # !+ " " + Use license waste contractor with GPS and black-box installed on all vehicles.

Sustainability Report 2010 PTT Chemical Public Company Limited

78

) * , ,

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, + ( > %" . + - 1!+ 89 * "!+ % 0 * ' + ( 1 * * / , % - " (0" % ~

As a good corporate citizen, PTT Chem Group is committed to creating and developing of life and social sustainability through innovation as principle to discover the value of business and our social context. Therefore, we have set social investment and community development as one of our elements in CSR Framework to return the favour and grow together with our communities.

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From 2010, the group has develop projects for communities more systematically using stakeholders anticipation as studying guidelines to understand and plan more effectively. Collaboration among stakeholders between employees and community members has been implemented to help build a more long-termed self reliance to the community. Types of social and community projects are environment projects, life quality improvement projects, education opportunity projects, relief efforts and public health projects with highlighted projects such as:

79

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2$ > Education

+!+ % 2 " 8 - 8 !- %_ - + 2 - 8 " (!- %_ ( Top 5 Awards and recognitions - Board of the Year Award - Audit committee award (Top 5)

0 <+ " + 0+ # Global warming reduction projects for the King

2$ > +) / 0 2 " ' /0 " 9 Distance learning through satellite, Youth scientist, Tripartite Project Â&#x; Sport

- SET Awards 2009 - Excellent CG Scoring + %: (" " -+ ( 1!+ 0 " %& %_ 3 0 "+ -+ ' - SET Awards 2009 - Excellent CG Scoring Corporate Governance Award for three consecutive years

0 ( + " !(( %_ Plastic flapped sack project

8 , 81%09 Public health and infrastructure 0 " $ %+1 %} Conscious raising on reforestation

, %& * 0 United Nations (UN) Global Compact # %& = / #$ ! () * ( " % * 0+ Participation in United Nations Global Compact to embrace responsible business operation in the global level

0 SEA Camp II SEA Camp II Project

0 81%09 * 0 * * + %5 / Infrastructure for youths project, Community medical project & community clinic

Sustainability Report 2010 PTT Chemical Public Company Limited

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, # $ 6/ ' &< #: , 'LVDVWHU 5HOLHI

* * * Community job promotion

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0 ! 2$ > 1 Excursion for youth project

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% J # 2> 0 | 8| "% ( ( + + " , ! , !) %% ., ~ Special lecture by former U.S. President Bil Clinton, Her Majesty's Fund (kongtunmae), etc.

80

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&RPPXQLW\ &OLQLF Despite numerous public and private hospitals available at Rayong, the existing capacity is still not meeting the demand and the rising numbers of population.

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Community Clinic project has been initiated since 2001 to provide local communities in Map Ta Phut and nearby areas, convenient access to medical services and to reduce their financial burden on medical costs. At the beginning, the initiative started off with just mobile teams of doctors and nurses to provide medical services to various communities within Map Ta Phut district. Due to the quality of mobile teams and medical care given by the team, numbers of users have rapidly increased. PTT Chem Group sees the opportunity to help out, thus we have joined our participation in this initiative, by setting up community clinic at our training center at NPC S&E company limited Rayong province to provide medical care to Map Ta Phut communities with the level of high standard as if attending our own employees.

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In addition, we have arranged monthly mobile doctors to provide health checkups and educate the local communities regarding basic hygiene and health issue in Map Ta Phut district and Ban Chang community.

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Also, we partner with Pharmaceutical System Research and Development Foundation to initiate medical box for 32 communities in Map Ta Phut area and 14 communities in Ban Chang area and Medical Section for 11 schools in Map Ta Phut area. This initiative is worth more than 1 million Baht, which we consider it as service to society. Medical supply is replaced every 3 months.

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/RFDO %XVLQHVV 'HYHORSPHQW PTT Chem Group has initiated supports for innovation to creating mutual values for our home Rayong province. PTT Chem Group provides financial funds and works with Mae Fah Luang University which is an educational institute specialized

Sustainability Report 2010 PTT Chemical Public Company Limited

82

!+ 7 )+ "9 8Z' * " + )+ "9 8Z' + % )+ " %& % * * 9 " !( ' “+1‘‘ + � 3$ * * - !‘( %& !- !

in cosmetics to develop products from nature for natural spa. The products are being commercialized as local product from Nong Fab community under the brand “Luffala�.

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Luffala natural spa product is one of the prides of Rayong community, which is an outcome of collaboration between private party, educational institute, government agency and communities. We values growing of local economics for our neighboring communities and business opportunities using local knowledge and natural products whereby sustainable livelihood can be attained under the concept of creative economy. This is evidence by the use of various natural products in the production of Luffala products, such as extracts from mangosteen, ipomoea, tamarind, aloe vera, asiatic pennyworth and luffa in combination with our existing products from PTT Chem group, such as Glycerin, Fatty-Alcohol, Ethoxylate Triethanolamine, which are a key ingredient in manufacturing various personal hygiene products. The production is standardized under the control of cosmetic science department of Mae Fah Luang University to build assurance of quality to our users.

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In addition to the above product lines, Luffala has developed various natural products, such as shower cream after sun cream serve. These products can be accounted for natural product development as well as to serve the market needs in integrated cosmetic areas. Moreover, PTT Chem Group plans to expand our supports to cover the whole chain from marketing, selling, to packaging, in order to grow this business for our local communities to national and international markets.

83

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&RPPXQLW\ 3DUWQHUVKLSV PTT Chem Group is aware that collaboration between industrial sector and communities is a key success factor in living in harmony between communities and industries. PTT Chem Group as a part of PTT Group is among the five entrepreneurs in Map Ta Phut Industrial Estate: PTT, SCG, BLCP Glow and Dow Chemical; to join hands and announce a new group “Community Partnerships Initiative" with PTT Chem Group CEO as the first president of this initiative. The initiative which is the cooperation of industrial plants in Map Ta Phut, the first kind in Thailand, to mutually agree to develop an exemplar of environmental friendly plant that exceeds legal requirement and monitor each other as well as promote life quality of communities in terms of health, education in order to allow industry and community to live sustainably. Cooperation of “Community Partnerships Initiative� is intended to show honesty and commitment to take care of environment and life quality of Rayong people. The initiative aims to create Rayong as a model of city that have quality life and industrial development along with community nurturing through participation by every sector. The cooperation brings together 3 missions:

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1. Green Operation works in the manner that industries that seek to assist industries by sharing of experience and monitor each other in respect of environmental and safety performance beyond regulatory compliance. The priority is in the area of Volatile Organic Compounds (VOC) reduction, odor management, controlling of glare gas including establishment of protection strip by growing plantation to provide buffer between industrial areas and community areas.

Sustainability Report 2010 PTT Chemical Public Company Limited

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3. <:K < < < > > ^ " / “21 ', 1+, * * � - " + - " - (* * %‰ ) 0% %& 21 ', 1+ 1 - (* * / %& Call Center (, ! ,%5=- " ~ !+ %5=- 0 1 " ! * * + “ * * � ! %5=- # 1 !( %5 % ( 8' !+ " ( 1!+ 0

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84

2. Beyond social responsibility is about raising the quality of life by focusing on education and health of the communities. The priority plan is to develop community health database, which is the pioneer for this kind of initiative in Thailand. 3. Communication is based on the set-up of community partnership center in 2010. The center is expected to be a link between the industrial sector and community to share knowledge, address critical issues and timely respond to community needs. “Community Partnerships Initiative� is committed to solve problems together in a prompt manner through knowledge, experience sharing and monitoring each other. The initiative aspires to see both industries and Rayong to live and grow side by side in a sustainable fashion. PTT Chem Group was among the first organizations to provide relief effort to flood victims in 2010 with 4.26 million baht in charity cash as well as necessities from companies within the group, employees and fund raising to help alleviate their situation.

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Bottle drinking water for people impacted from flood in February

) 3; $ < 0 :6& ( . &.)

1,500,000

1,000,000

800,000

& / Bath

& / Bath

& / Bath

564,000

391,698

& / Bath

& / Bath

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+ + + * * (0 + + !+ + +1 ( ( " (! , %" . + ( + 81.8 / 91 / 88 / 83.9 " + (

To ensure our performance in corporate social responsibility responses to the stakeholders’ expectations and concerns, we have conducted a survey in regards to corporate image, recognition and satisfaction from our target groups including (1) 259 employees; (2) 934 community members; (3) 20 investors; (4) 75 customers from all 4 business lines. Results were higher than our 80% target with employees, community members, investors and customers rated our return to social and communities 81.8%, 91%, 88% and 83.9%, respectively.

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Satisfaction survey results have shown areas with higher scores than targets as follows: (1) Good governance 85.9%; (2) Human rights 86.3%; (3) Fair labour treatment 87.1%; (4) Consumer responsibility 86.9%; (5) Social and community development 85.6%; (6) Environment conservation 85.6%; and (7) Fair conduct 84.1%.

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Our intention is to use these results to keep improving our sustainability development continuously.

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6XSSO\ &KDLQ 0DQDJHPHQW PTT Chem Group suppliers have to follow PTT Chem Group business code of conduct or other similar principle equivalent to our standards. In case a supplier is not able to follow, we will review the contract, which could be contract termination. In 2010, there is no supplier contract termination.

Sustainability Report 2010 PTT Chemical Public Company Limited

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86

Apart from supply chain management according to PTT Chem Group Business Code of Conduct, we promote the acquisition of local products by providing guidance to our functions to give priority for local products, such as food and cleaning equipment. We expect economic expansion in Rayong Province, where we consider it as our home. In addition, it would reduce impact to environment as reduction in energy used for transportation of good and material. In 2010, we have proportion of local suppliers up to 20% from all suppliers. Other suppliers are national supplier of 68% whereas 12% is the international supplier.

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4XDOLW\ 2FFXSDWLRQDO +HDOWK 6DIHW\ DQG (QYLURQPHQWDO 3ROLF\ 377 &KHPLFDO 3XEOLF &RPSDQ\ /LPLWHG PTT Chemical Public Company Limited strives for sustainable chemical industry excellence and responsible company under sustainable development principle. Our commitments on quality, occupational health, safety and environment responsibility are as follows: 1. Focus on risk management and controlling loss from accident, injury, illness, damage to properties and environmental impact through process improvement and source prevention. 2. Oversee occupational health and working environmental of operators and promote good health and happiness in workplace 3. Comply with legal requirements and applicable standards regarding quality, safety, occupational health and environment 4. Posses intend on good management and high efficiency to build trust among stakeholders 5. Adopt sustainable development principle in business operation through continuous improvement and development The company will develop and maintain quality, occupational health, safety and environmental management system including will support with adequate resource, employee involvement, employee accountability and communication to all relevant parties. Announce on 30 June 2010

(Mr. Veerasak Kositpaisal) President & CEO

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% 8 / * Total Water * + Consumption (Million GJ) * + Total Indirect " Total Direct Energy (Million GJ) Energy (Million GJ)

/ + ( * - Percent Recycle Water (%)

% 8 %+ X 3 " / - Total direct greenhouse gas emission (Ton CO2 eq)

% 8 %+ X 3 / - Total indirect greenhouse gas emission (Ton CO2 eq)

% 8 %+ NOx (" ) NOx emission (Ton) % 8 %+ SOx (" ) SOx emission (Ton) % 8 / / (+ +(. .) Total water discharge (million m3)

Π2550 2007

0.7

24.6

0.7

8.4

3.59%

-

-

2,458.84

-

0.8

Π2551 2008

0.8

15.6

0.9

12.2

2.28%

-

-

1119.64

-

0.7

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0.8

20.2

0.2

13.8

2.18%

1,192,586

9,248

1340.09

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0.9

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0.7

26.2

0.1

13.4

1.83%

1,389,386

6,017

974.03

-

0.7

92

Sustainability Report 2010 PTT Chemical Public Company Limited

( 0 (" ) BOD (Ton)

% 8,

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% 8,

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= (+ " ) Non-hazardous -+

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3 0 (" ) COD (Ton)

1.80

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0

0

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0

0

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0

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Π2550 2007

1.5

16.4

2.2

6.0

2.69%

-

-

873.01

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1.4

15.3

1.8

6.4

1.95%

-

-

769.61

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0.8

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1.7

18.2

2.1

7.3

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293,061

548.32

19.53

0.6

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1.3

14.3

1.1

7.1

1.61%

660,394

274,871

444.88

5.93

0.5

- -" : *** 0 , # -- $ - #$ )+ "0 +‘‰ ' !+ )+ " 81% • * + " - 0 , # -- $ * Natural Gas !+ Tail Gas )+ " + !+ * + - Steam Boiler !+ Waste Heat Recovery Boiler - 0 , # - * + - 9 Steam Boiler !+ Waste Heat Recovery Boiler • , ( ,", * + - 0 , # -- $ * / %& + * / 8 < < ( ! ‘‘{ !+ / ( > 9 - 0 , # - ( ! ‘‘{ !+ / ( > 9 !+ (( Utilities Unit , 0 , # -- $ • !-+ / * - 0 , # -- $ ( / ( (Raw Water) . 3$ * / !-+ / ) 0 ) ( % (% 89 / / * / + ) ( Reverse Osmosis (RO) - 0 , # - ( / ( > 9 3$ ( / ( . !+ * / + ) ( Reverse Osmosis (RO) • % 8 X 3 / - - 0 , # -- $ !+ , # - % 8 CO2 -emission , )+ "9 8Z' " scope 1 !+ 2 " " J IPCC 2006 !+ ISO 14064 (PTT Greenhouse Gas Accounting and Reporting Standard) - %+ %+ X 3 %_ 2550 !+ 2551 + 1 - " J - ( !+ ( =* X 3 • % 8 %+ SOx - %+ %+ X 33 + ‘ ' 3 ', 0 , # -- $ # 1 - " %{ ! , !+ + )+ (" ! + " ( % )+ (" ! + , 0 * X 3 * " %& !-+ + " • !-+ / ( / / - 0 , # -- $ !+ , # - ( / / ) ( ( ( 8 9 %& %" ‚- + ( / , . 3$ -++ 1 + * - • ,

- 0 , # -- $ !+ , # - , 0 % ( # !+ 45 +(" -+ ) ! % 9 - % * %& "# ( ! / * / + ! / * / + ) #$ * 3/ !+ + ( * -

94

Sustainability Report 2010 PTT Chemical Public Company Limited

( 0 (" ) BOD (Ton)

% 8,

" " - )+ " 8,

(" / - )+ ") % "

Hazardous waste (" ) !, + (" ) disposal per % 8,

Suspended solid " (" ) unit of production wasteNon-hazardous disposal (Ton) (Ton) Hazardous waste (Ton/ton production) disposal (Ton)

% 8,

" " - )+ "

-+ (" /- )+ ") / % 8

= (+ " ) Non-hazardous -+

= waste disposal per Number of spills Volume of spills (liter) unit of production (Ton/ton production)

3 0 (" ) COD (Ton)

0.86

21.08

4.88

1,141.78

0.0013

561.50

0.0006

0

0

2.71

40.12

10.23

591.01

0.01

1,727.87

0.02

0

0

1.05

40.18

6.80

1,574.31

0.0015

410.28

0.0003

0

0

2.06

32.29

4.75

4,281.96

0.005

570.56

0.0007

0

0

Remark *** I-1 plant consists of Olefins plant and Utilities Unit. • Total direct energy - I-1 plant uses natural gas and tail gas from process as primary energy source and recovers energy from steam and waste heat recovery boiler. - I-4 plant recovers energy from steam and waste heat recovery boilers. • Total indirect energy - In normal operation, I-1 plant uses steam as indirect energy. - I-4 plant imports electricity and steam from external company and utilities unit of I-1 plant. • Source of water - Raw water sources of I-1 plant are surface water from industrial estate’s surface water supply sources and seawater. - I-4 plant receives treated water from external company and seawater via reverse osmosis unit. • Total direct and indirect GHG emissions - I-1 and I-4 plants use PTT Greenhouse Gas Accounting and Reporting Standard which is in line with IPCC 2006 (U.N. Intergovernmental Panel on Climate Change) and ISO 14064-1:2006 to calculate and report scope 1 and 2 greenhouse gas emissions. - There are no GHG emission data reported in 2007 and 2008, because PTT Greenhouse Gas Accounting and Reporting Standard was still under development and testing in 2007-2008. • SOx emission - Olefins plant I-1 does not report SOx emission, as their primary energy source is from natural gas, thus SOx emission is not relevant to their scope of emissions. • Receiving water body - I-1 and I-4 plants treat wastewater in accordance with the regulatory standards before discharging to the industrial estate receiving canal, Klong Chag Hmak. • Disposal method - I-1 and I-4 conduct waste management by sanitary landfill or secure landfill with waste stabilization, incineration, reuse and recycle approaches.

95

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, ) '> 2553 7RWDO GLUHFW HQHUJ\ FRQVXPSWLRQ LQ

^Z>? Total Direct Energy (Million GJ) 16.4

24.1

Natural Gas

Recycled By-product as Primary Energy

, ) '> 2553 7RWDO LQGLUHFW HQHUJ\ FRQVXPSWLRQ LQ

^Z>? > Total Indirect Energy (Million GJ) 0.6

0.5

Steam

Electricity

, '> 2553 7RWDO ZDWHU FRQVXPSWLRQ LQ

$ _ ^Z> Total Water Consumption (Million m3)

Surface water

Water supply

Sea water

6.7

4.4

9.3

!# # '> 2553 +D]DUGRXV ZDVWH GLVSRVDO LQ

$ <"+ 913.06 + "K Hazardous waste disposal (Ton) Recover

770.3

Landfill

22.72

Reuse

133.27

Recycle

8,042.77

Incineration

!#. # '> 2553 1RQ KD]DUGRXV ZDVWH GLVSRVDO LQ

$ <"+ 426.45 @ + "K Non-hazardous waste disposal (Ton) Domestic

428.33

Landfill

1,300.23

Reuse

333.49

Recycle

0.25

Incineration

96

Sustainability Report 2010 PTT Chemical Public Company Limited

'6 ' < # 6DIHW\ 3HUIRUPDQFH

2007

)1 * " Fatality

2008

2009

0 0 0 0

2010

0 0 0 0

2 0 0 0

( " -" #$ , / - Lost workday case (LWC)

4 0 3 3

? /J> Employee Contractor

)1 ( - Employee Contractor

)1 ( ( Total recordable injuries case (TRIC)

6 0 2 1

10 2 10 5

? /J> Employee Contractor

" ( ( Total recordable injuries rate (TRIR)

0.09 0 0 0

0.09 0 0.5 0

" ( " -" #$ , / - Lost time injuries frequency rate (LTIF) ? /J> Employee Contractor

+ : , 1+ %+ 9 ( + !+ )1 ( - , + ( > %" . + Remark: The scope of safety data covers employees and long term contractors of PTT Chem Group

0.26 0 0.76 0.30

0.34 0.41 1.67 0.79

? /J> Employee Contractor

97

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'6 & 3HRSOH 3HUIRUPDQFH

1,992 1,659

1,646

1,970

1,817

2,118

13

22

17

18

2550

2551

2552

2553

2007

2008

2009

2010

2,136 1,834

! " % 9 Total number of employee by employment contract

2550

2551

2552

2553

2007

2008

2009

2010

% (Full Time)

" == (Contract)

/ - Total number of employee 1,689

1,512

1 (0.05%) 21 (1.0%) 807 (37.8%)

2551 2008

2552 2009

2553 2010

1,404 76% (1,254) 24% (405)

75% (1,490) 25% (502)

71% (1,298) 29% (536)

71% (1,525) 29% (611)

2550 2007 2550

2551

2552

2553

2007

2008

2009

2010

! " 2 (%, ) Total number of employee by gender (%, person) * (male)

/ ! " ( (%, ) Total number of employee in Rayong by employee level (%, person) ( 15 - 16 Employee level 15 - 16 ( 13 - 14 Employee level 13 - 14 ( 1 - 12 Employee level 1 - 12

-= (female)

- -" : - , 1+ ( + ( + !+ )1 ( - , + ( > %" . + - + ( > %" . + 9 ! " 2 % +

, ( , ( > !+ 0 ( - 9 2 - , 1+ / ( ( - - )1 ( - ( 1 - #$ ( 13-14 ,$/ %

Sustainability Report 2010 PTT Chemical Public Company Limited

359

572

643

692

1,199

1,297

1,070

1,294

101

123

139

150

2550

2551

2552

2553

2007

2008

2009

2010

42% (15)

17% (4)

34% (18)

37% (20)

41% (16)

63% (15)

32% (17)

46% (25)

17% (8)

34% (18)

20% (5)

17% (9)

! " Total number of employee by age (person) 30 (Less than 30) 30 - 50 50 (More than 50)

2550

2551

2552

2553

2007

2008

2009

2010

9 ! " (%, ) Total number of employee turnover by age (%, person) 30 (Less than 30) 30 - 50 31

39

35

58

16 50

15 61

13 59

14 67

1,561

1,877

1,727

1,997

2550

2551

2552

2553

2007

2008

2009

2010

50 (More than 50)

21

12

28

28

18

12

25

26

2550

2551

2552

2553

2007

2008

2009

2010

! " ( Total number of employee by employment level % ( > , ( > , )1 -= President, Board, and CEO ( 15 - 16 Employee level 15 - 16 ( 13 - 14 Employee level 13 - 14 ( 1 - 12 Employee level 1 - 12

9 ! " 9 Total number of employee turnover by region (Bangkok)

(Rayong)

Remark: - Human resource information covers employees and long term contractors of PTT Chem Group - PTT Chem Group does not report employee turnover by gender because gender equality is not our material issue and we do not tolerate forcing of employee turnover due to gender difference - Employees in Rayong are employees who has resident registration in Rayong Province - Senior management is defined as employees from level 13-14

98

99

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# + Top Employers of Choice + + ! -' " - Industrial Products ' * / 1 10 ' ( - 0% !+ 1 , + %{ - (( + % %_ 2553 8 %{ * (Thailand’s Top Graduates Employers) , ( > !+ % (% "!- * " + " / 0 ‘+ ' 52/( 02'(/ 7UDQVSDUHQF\ $ZDUGV 7RS (PSOR\HUV RI &KRLFH PTT Chemical was selected as the “Most PTT Chemical received a highest score on Top Employers Transparent Company Award� out of 10 of Choice for a category of Industrial Goods among nominations received from Office of the peers in an annual study by the recruiter Quality Profiles National Anti-Corruption Commission Placement Ltd.

)# : , " + EIA Monitoring Award 2010 0 0 ‘‘{ 105 MW. 0 ( !+ !) * " !+ ! + 0LQLVWU\ RI 1DWXUDO 5HVRXUFHV DQG (QYLURQPHQW EIA Monitoring Award 2010 Certificate for “105 MW Electricity Plantâ€? for compliance with the Environmental Impact Assessment Report conferred by the Office of Environment Policy and Planning, Ministry of Natural Resources and Environment ; ' & ! ' < # ,! # < ) &' 0 • # % ( %+ 9 *

• + # % ( %+ 9 *

!+ 9 ! + (% 2 ! " %& %_ 13 • + # % ( ! '!+ ! % %_ 2553 % 9 # % ( , -= -9 !+ ! ! (;(&(//(1&( LQ /DERXU &RQGLWLRQV • In Labour Relationships and Welfare 2010 Award in large business category conferred by the Department of Labour Protection and Welfare, the Ministry of Labour. • In Safety, Occupational Health and Work Environment Award (National) 2010 conferred by the Ministry of Labour (for 12th year)

(FRPDJLQDWLRQ $ZDUG +0 Ecomagination Award GE Water and Process Technologies % 9 + 7 %& " " ! + (Return on Environment Award) $&7,1* 5(63216,%/< PTT Chemical received Ecomagination Award. The awards for leading companies in Thailand including “Ecomagination Leadership Award� and “Return on Environment Award�. It is the company’s activity with the business partners to use green technology to solve the problem of water and energy consumption to achieve sustainable development in economy.

Sustainability Report 2010 PTT Chemical Public Company Limited

&6 , & !" '4 0 + CSR Excellence Recognition ( + J ( > %& % 0 * '!+ () * (" 0 - % 2

&65 ([FHOOHQFH 5HFRJQLWLRQ The AMCHAM Thailand 2010 CSR recognition for outstanding achievements in sustainable community development

# '( &

& / !" ! ! - + %: ( " " -+ ( 1!+ 0 " %& %_ 3 0 "+ -+ '| $ZDUGV RI +RQRXU SET Awards 2010 Excellent CG Scoring for 3 consecutive years conferred by the Stock Exchange of Thailand

100

& $ & + ' , , , 0 United Nations initiative Global Compact # %& , = (0+ 75867 81 *OREDO FRPSDFW PTT Chemical is committed to the principles of the United Nations Global Compact and has been a signatory and active member. This network for the responsible involvement of companies in the global economy.

# & ( ( ( + , 7 (! 7 , Global Reporting Initiative (GRI) 3 3$ %& " J + % )+ *OREDO 5HSRUWLQJ ,QLWLDWLYHV Credibility for effective sustainability reporting in accordance with GRI G3 guidelines, an international level of sustainability benchmarking

101

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# %& & ! $SSURDFK WR 5HSRUWLQJ

# / '( & + ( > %" . + 7

" / !" %_ 2550 0 " # % ' %& + , 1+ 2 >J ! + !+ () * ( " , ( > - )1 + ( ( 0% !+ - * + - %& % %_ 0 % "' * ! 7 , Global Reporting Initiative Guidelines (GRI) G3 " * * / -+ - !+ % "' * % : (" ( !+ , 1+, + %" . 3$ + (! " GRI G3 - ()+ %+ 9 * !+ ! + - , 1+ %& 1%!(( ( > !+ - , 1+ / - * # + ( * * / , GRI G3 + ( > %" . + % (1 8', / - ( A

)UDPHZRUN DQG *XLGHOLQHV PTT Chem Group has published Corporate Social Responsibility report since 2007 as a medium to transparently communicate the Company's economic, environment and social performance data to stakeholders. PTT Chemical has defined the period for reporting to be on an annual basis. PTT Chem Group has adopted the Global Reporting Initiative's (GRI) G3 sustainability reporting guidelines for this Sustainability Report. In addition, for the performance data related to safety, health and environment, it is based on data compilation and reporting system of PTT Group, which is developed in line with GRI G3 indicators. Therefore, data compilation and reporting of the group utilizes the same format to ensure data reliability and also calculation and reporting methods are in compliance with GRI G3 PTT Chem Group declares this report a GRI A application level.

/ + ( > %" . + ( () * (" * ( - !+ % () * (" + %& 1% !+ + ( + ' () * (" , + ( > %" . +

In addition, PTT Chem Group has adopted the PTT Chem Group's CSR Framework to manage and report company's CSR performance in a tangible way and in consistent with our CSR Strategy.

# ' 7 ! " ! 5 / / + ( > %" . + % -+ )+ (" =, + ( > %" . + 0 * ! " -+ , * * / Global Reporting Initiative 3 (GRI-G3) ( % = 3$ <( ( / + ( > %" . + ( ( , + !+ + ' " ( " % = " %{ - " (0", ' /

0DWHULDO ,VVXHV PTT Chem Group is focusing on presenting material issues which reflect the company's significant economic, environmental and social impact that would substantively affect the perception of company. Guidance from GRI G3 was adopted in developing the approach to define these material issues. In this Sustainability Report, PTT Chem Group provides our position and strategy around the following key sustainability topics of relevance to PTT Chemical the industry.

Sustainability Report 2010 PTT Chemical Public Company Limited

102

, , ( () * (" , + ( > %" . + !+ % = # ! ~ /

Relevance of PTT Chem Group CSR Framework and Material Issues

• ( - ! + - * + % 9 - ( - / • ( 1!+ ' - + ' ' 7

+ (! %: ( " + • 1!+)+ "9 8Z' - " %& " " 89 * "!+ ! + - !) , - " ( " )1 ( 09 )+ " + " * 9 • , )1 + !+ 7 * * - , " - 7 89 * " * * (Partnership Program)

• Environmental Management - Energy efficiency - Water resource management • Organizational governance - Execution of sustainability strategy in accordance with international guidelines • Product Stewardship - Green and clean innovation - Business expansion responding to customers demanding on bioplastic • Stakeholder Engagement and Social Investment and Community Development - Partnership program between communities and industries

& &< # + ( > %" . + 7 - #1 " (# !+ % 7 , + #$ ! + 2 >J !+ , + - ) 1 , "+ 7 ! 3$ , 1+ " "+ - %‰ ) , 1+ (# (1 8' ,$/ - , ( + " # % ' + / - , <( ( / %& ( , 1+, - " ~ - !+ 7 89 %+ 9 * !+ ! + )+ " ( + ( -

( 1!+ !+ 0 8 ( 1!+ () * (" , + ( > %" . + - ( !+ - - * ( - , / - , !+ #1 " , , 1+

,QWHUQDO 3URFHVVHV PTT Chem Group aims to ensure that the information we publish is accurate, complete and material and therefore contributes to building trust and credibility with key stakeholders. To achieve this, the contents for the report are prepared using material drawn from a number of data owners including research and technology; safety, health and environment; operations; human resources; risk; corporate governance and finance. The PTT Chem Group CSR Committee reviews and approves proposals for content, direction and accuracy of the data.

103

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+ %" . + 1 - 0% ! ( () * (" 0 - 9 3$ 8 ( 1!+ !+ " ( " )1 !+ )+ # - ( 8 0 ( () * (" % * " 3 , %_ 2554 !+ ) ! <( (%_" %

PTT Chem Group is developing the Third-party CSR Verification Program to verify CSR governance, business conduct and stakeholder inclusiveness. The result is expected to be reported to the PTT Group Corporate Social Responsibility Committee within the third quarter of 2011 and will be available in the next year Sustainability Report.

/ + %" . + ( + %" . " % + ( 10 '% ( " ( () * (" + %" . %_ 2554 !+ )+ " + %" . " 2 , %_ 2555

Moreover, PTT Chem Group and PTT Group are expected to conduct CSR Assurance Program in compliance with the 10 Elements of the PTT Group Corporate Social Responsibility Framework in 2011 and the result is expected to be reported to the committee within the second quarter of 2012.

& # / - , , 1+ <( ( / ( + ! + 2 >J !+ * - 1 2553 #$ 31 2553 , ( > %" . + ( - * ) !+ ( > 0 ( > 1 !+ )1 ( - 1 , ( ,", <( ( / !" ( %& 8 + -+ / 1 9 " , %" . + 0 "

6FRSH This report includes economic, social and environmental performances during the period 1 January 2010 - 31 December 2010, of PTT Chemical Public Company Limited and our subsidiary, and excludes our joint ventures, business partners and contractors, except, on a case by case significant, when they are directly under the management of PTT Chemical or where their operations might cause significant impacts on the CSR performance of the group.

" , 1+)+ ! + !+ () * (" <( ( / ( + #$ ( > + ( > %" . + / - (( (, 1+ )+ " * * / 2 >J ! + %+ 9 !+ , ( > + !" " 1 ( , 1+)+ 9 - (

( , , 1+ / / + ( > %" . + 1 - 7 !+ % (% , 1+)+ () * (" 9 / - " % / , (,

, , 1+ 2 >J !+ ! + #1 ( * / - , <( ( / / % (% (( , 1+% )+ ! + - + (! , 1+, + %" . - ,$ / - % )+ " % %_ -

However, information on environmental and social responsibility activities in the 2010 report does not cover those activities of all the companies of PTT Chem Group as there are inherent limitations due to variation in data collection system of the economic, social, safety and environmental indicators among the companies in PTT Chem Group. PTT Chem Group recognizes that our data will be affected by those limitation and continue to improve the integrity of our data by strengthening and standardizing our internal data collection system, in order to make the disclosure of information more complete and more consistent to GRI indicators in future. It should be note that environmental performance reported in 2010 Sustainability Report could be varied from previous year report, because the organization is improving the data management to be in line with PTT Group procedure.

104

Sustainability Report 2010 PTT Chemical Public Company Limited

& / # , !, ! *5, *5, $SSOLFDWLRQ /HYHO 7DEOH

G3 Performance indicators & Sector Supplement Performance Indicators

B+

Report on a minimum of 10 Performance Indicators, including at least one from each of; Economic, Social and Environmental.

Management Approach Disclosures for each Indicator Category

Report on a minimum of 20 Performance Indicators, at least one from each of Economic, Environmental, Human rights, Labour, Society, Product Responsibility.

A

A+

Same as requirement for Level B

Management Approach Disclosures for each Indicator Category

Report on each core G3 and Sector Supplement* Indicator with due regard to the Materiality Principle by either: a) reporting on the Indicator or b) explaining the reason for its omission

*Sector supplement in final version

5HSRUW $SSOLFDWLRQ /HYHO 2002

C

C+

B

B+

A

A+

GRI Checked

Report Externally Assured

Optional

Third Party Checked

Report Externally Assured

Self Declared Report Externally Assured

Mandatory

In Accorderance

Report Externally Assured

Report Externally Assured

OUTPUT OUTPUT

G3 Management Approach Disclosures

B

Report on all criteria listed for Level C plus; 1.2 3.9, 3.13 4.5-4.13, 4.16-4.17

Report on: 1.1 2.1-2.10 3.1-3.8, 3.10-3.12 4.1-4.4, 4.14-4.15

Not Required

OUTPUT

Standard Disclosures

G3 Profile Disclosures

C+

Report Externally Assured

C

Report Application Level

105

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' # %& & ! (GRI Content Index – Global Compact) 1. Strategy and Analysis Indicator 1.1 1.2

Description

Sustainability Report 2-4

Description of key impacts, risks and opportunities

25-26, 21

CEO statement

Others

UNGC Principles Statement of Continuing support -

Others

UNGC Principles -

2. Organizational Profile Indicator 2.1 2.2 2.3

Description Name of the organization Primary brands, products and services Operational structure

2.4

Headquarter location

2.5

Countries of operation

2.6

Nature of ownership and legal form

2.7

Market served

2.8 2.9

Scale of the reporting organization Significant changes during the reporting period regarding size, structure or ownership Awards received in the reporting period

2.10

Sustainability Report 14 11-12 20

115

Website: Business Structure, Organization Structure, Subsidiaries & Affiliates Website: Contact Us Website: Contact Us Website: History, Business Structure Websites: Business Sectors, Market Served

37-38, 97 Website: Milestone 99-100

Sustainability Report 2010 PTT Chemical Public Company Limited

106

3. Report Parameters Indicator 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9

3.10 3.11 3.12 3.13

Description Reporting period Date of most recent previous report Reporting cycle Contact Process for defining report content Boundary of the report Limitations on the scope or boundary of the report Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that could affect comparability Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report. Explain any decisions not to apply or to substantially diverge from the GRI Indicator Protocols Explanation of the effect of any restatements of information provided in earliers reports Significant changes from previous reporting periods in the scope, boundary or measurement methods applied in the report GRI content index Policy and current practice with regard to seeking external assurance for the report.

Sustainability Report 103

Others

UNGC Principles -

(9/27/2010) 101 105 101-102 103 103 103 51, 94, 101

103

103 105-104 103

4. Governance, Commitments and Engagement Indicator 4.1 4.2 4.3 4.4

Description Sustainability Report Others UNGC Principles Governance Structure 19-20 Principles 1-10 Whether the chair of the board of directors is also 19-20 an executive officer Percentage of the board of directors that are Website: independent or non-executive directors Board of Directors Mechanisms for shareholders and employees to provide 75-76 recommendations or direction to the board of directors

107

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Indicator 4.5

4.6 4.7

4.8

4.9

4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17

Description Sustainability Report Linkage between compensation for members of 32 the highest governance body, senior managers and executives (including departure arrangements), and the organization's performance (including social and environmental performance) Processes in place for the highest governance body to ensure conflicts of interest are avoided Process for determining the qualifications and expertise 19 of the members of the highest governance body for guiding the organization's strategy on economic, environmental and social topics Internally developed statements of mission or values, 18, 28, 29 codes of conduct and principles relevant to economic, environmental and social performance and the status of their implementation Procedures of the highest governance body for 20 overseeing the organization's identification and management of economic, environmental and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct and principles Processes for evaluating the highest governance 32 body's own performance, particularly with respect to economic, environmental and social performance Precautionary approach 32-33 Agreements, principles or external initiatives on 6, 44, 46, 66 economic, environmental and social aspects Memberships in associations and national/international 83 advocacy organizations List of stakeholder groups engaged by the organization 75-76 The basis for identifying and selecting stakeholders 75-76 with whom to engage Approaches to stakeholder engagement 75-76 Key topics and concerns that have been raised 77 through stakeholder engagement

Others

UNGC Principles

CG 28-39 CG 17

Principle 7 Principles 1-10

Sharing the COP with the Company’s Stakeholders

Sustainability Report 2010 PTT Chemical Public Company Limited

108

5. Performance Indicators Economics Management Approach EC DMA EC Economic Performance

EC1

EC2 EC3 EC4 Market Presence

EC5 EC6 EC7

Indirect Economic Impacts

EC8

EC9

Sustainability Item Others Report Economic performance, Market presence 39-40, 81-82, 86 Website: and Indirect economic impacts Analyst Briefing Direct economic value generated and 38-40 distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings and payments to capital providers and governments Financial implications and other risks and 51 opportunities for the organization's activities due to climate change Coverage of the organization's defined 71 benefit plan obligations Significant financial assistance received from 40 government Range of ratios of standard entry level wage 71 compared to local minimum wage at significant locations of operation Policy, practices and proportion of spending 85-86 on locally-based suppliers at significant locations of operation 97 Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation 81-82 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement 81-82 Understanding and describing significant indirect economic impacts, including the extent of impacts

UNGC Principles Principles 1, 4, 6, 7 -

Principle 7 -

Principle 1 Principle 6 -

109

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Environment Management Approach EN DMA EN Materials

EN1 EN3

Energy

EN4 EN5 EN6

EN7 Water

EN8 EN9 EN10

Emissions, Effluents and Waste

EN16 EN17 EN18 EN19 EN20 EN21

Item Materials , Energy, Water, Emissions, Effluents and waste, Products and services, Compliance, Transport and Overall Materials used by weight or volume Direct energy consumption by primary energy source Indirect energy consumption by primary energy source Energy saved due to conservation and efficiency improvements Initiatives to provide energy-efficient or renewable energy based products and services and reductions in energy requirements as a result of these initiatives Initiatives to reduce indirect energy consumption and reductions achieved Total water withdrawal by source Water sources significantly affected by with drawal of water Percentage and total volume of water recycled and reused Total direct and indirect greenhouse gas emissions by weight Other relevant indirect greenhouse gas emissions by weight Initiatives to reduce greenhouse gas emissions and reductions achieved Emissions of ozone-depleting substances by weight NO, SO and other significant air emissions by type and weight Total water discharge by quality and destination

Sustainability Report 40, 46, 47-48, 49-52, 53-54, 56-57, 60, 62, 86 91, 93 91, 93, 95

Others

UNGC Principles Principles 7, 8, 9 Principle 8

91, 93, 95 49-50

Principles 8, 9

56

49-50 47-48, 91,93 47-48

Principle 8

48, 91, 93

Principles 8, 9 Principle 8

51-52, 91, 93 51 51-52 54 53-54, 91,93 54,94

Principles 7, 8, 9 Principle 8

Sustainability Report 2010 PTT Chemical Public Company Limited

Emissions, Effluents and Waste

EN22 EN23 EN25

EN26 Products and Services EN28 Compliance EN30 Overall

Sustainability Item Report Total weight of waste by type and disposal 54-55, 92,94 method Total number and volume of significant spills 92,94 Identity, size, protected status and biodiversity 47-48 value of water bodies and related habitats significantly affected by the reporting organization's discharges of water and runoff Initiatives to mitigate environmental impacts 56-57 of products and services, and extent of impact mitigation Monetary value of significant fines and total 44 number of non-monetary sanctions for noncompliance with environmental laws and regulations Total environmental protection expenditures 40 and investments by types

Others

110

UNGC Principles Principle 8

Principles 7, 8, 9 Principle 8

Principles 7, 8, 9

Labour Practices and Decent Work Management Approach LA DMA LA Employment

LA1 LA2 LA3

Occupational Health and Safety

LA6

LA7

Sustainability Item Report Employment, Labour/management relations, 65-67, 69-70, Occupational health and safety, Training and 72, 73-74 education, Diversity and equal opportunity 97-98 Total workforce by employment type, employment contract and region 98 Total number and rate of employee turnover by age group, gender and region 71 Benefits provided to full time employees that are not provided to temporary or part 66 Percentage of total workforce represented in formal joint management worker health and safety committees that help monitor and advise on occupational health and safety programs 96 Rates of injury, occupational diseases, lost days and absenteeism and number of work related fatalities by region

Others

UNGC Principles Principles 1, 3, 6 Principle 6 Principle 1

111

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Occupational Health and Safety

LA8

Training and Education

LA10 LA11

LA12 Diversity and Equal Opportunity

LA13

Sustainability Item Report Education, training, counseling, prevention 81 and risk-control programs in place to assist workforce members, their families or community members regarding serious diseases Average hours of training per year per 72 employee by employee category Programs for skills management and lifelong 72 learning that support the continued employability of employees and assist them in managing career endings Percentage of employees receiving regular 72 performance and career development reviews Composition of governance bodies and 97-98 breakdown of employees per category according to gender, age group, minority group membership and other indicators of diversity

LA14 Ratio of basic salary of men to women by employee category

71

Others

UNGC Principles Principle 1

-

Reporting on this Principles disclosure is not 1, 6 applicable. We report diversity data on employees by gender and age group. Data on minority employees is not aggregated and disabled employees is not collected or aggregated as this depends on individual wish for declaration. PTT Chemical's employees career progress, compensation and incentives are subject to their own quality, achievements, attitudes and capabilities. Therefore, no difference between the basic salary rates of men and women.

Sustainability Report 2010 PTT Chemical Public Company Limited

Item

Sustainability Report

112

UNGC Others Principles Requirement regarding the Board’s and President’s Compensation is provided in page 25 of CG Handbook.

Human Rights Management Approach HR DMA HR Diversity and Equal Opportunity

HR3

Non-discrimination

HR4

Freedom of Association and Collective Bargaining

HR5

Child Labour

HR6

Forced and Compulsory Labour

HR7

Security Practices

HR8

Sustainability Item Report Non-discrimination, Freedom of association 69-70 and collective bargaining, Child labour, Forced and compulsory labour, Security practices Total hours of employee training on policies 69 and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained Total number of incidents of discrimination 73 and actions taken Operations identified in which the right to 73 exercise freedom of association and collective bargaining may be at significant risk and actions taken to support these rights Operations identified as having significant 73 risk for incidents of child labour and measures taken to contribute to the elimination of child labour Operations identified as having significant 73 risk for incidents of forced or compulsory labour and measures to contribute to the elimination of forced or compulsory labour Percentage of security personnel trained 73 in the organization's policies or procedures concerning aspects of human rights that are relevant to operations

Others

UNGC Principles Principles 1, 2, 3, 4, 5, 6 Principles 1, 2, 3, 4, 5, 6 Principles 1, 2, 6 Principles 1, 2, 3 Principles 1, 2, 5 Principles 1, 2, 4 Principles 1, 2

113

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Society Management Approach SO DMA SO Community

SO1

Corruption

SO2 SO3 SO4

Public Policy

SO5

Public Policy

SO6

Anti-competitive Behaviour

SO7

Compliance

SO8

Sustainability Item Report Community, Corruption, Public policy, 29-31, 78 Anti-competitive behaviour, Compliance Nature, scope and effectiveness of any 77-78, 85 programs and practices that assess and manage the impacts of operations on communities, including entering, operating and exiting Percentage and total number of business 31 units analyzed for risks related to corruption Percentage of employees trained in 29 organization's anti-corruption policies and procedures Actions taken in response to incidents of 29 corruption Public policy positions and participation in 44 public policy development and lobbying Total value of financial and in-kind 30 contributions to political parties, politicians and related institutions by country Total number of legal actions for anti31 competitive behaviour, anti-trust and monopoly practices and their outcomes Monetary value of significant fines and total 31 number of non monetary sanctions for noncompliance with laws and rogulations

Others

UNGC Principles Principle 10 -

Principle 10

Principles 1-10 Principle 10 -

Product Responsibility Sustainability Item Report Management Approach PR DMA PR Customer health and safety, Product and 59-60, 52-53, 59-60 service labeling, Marketing communications, Customer privacy and Compliance Customer Health & Safety PR1 Life cycle stages in which health and safety 56-57 impacts of products and services are assessed for improvement and percentage of significant products and services categories subject to such procedures

Others CG 52-53

UNGC Principles Principles 1, 8 Principle 1

Sustainability Report 2010 PTT Chemical Public Company Limited

114

UNGC Sustainability Item Others Report Principles PR2 Total number of incidents of non-compliance 60 Principle 1 with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes Product and Service PR3 Type of product and service information 59 Principle 8 Labeling required by procedures, and percentage of significant products and services subject to such information requirements PR4 Total number of incidents of non-compliance 60 with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes PR5 Practices related to customer satisfaction, 59 including results of surveys measuring customer satisfaction Principle 8 58-60 Marketing Communications PR6 Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion and sponsorship PR7 Total number of incidents of non-compliance 60 with regulations and voluntary codes concerning marketing communications, including advertising, promotion and sponsorship by type of outcomes PR8 Total number of substantiated complaints 60 Customer Privacy Principle 1 regarding breaches of customer privacy and losses of customer data 60 PR9 Monetary value of significant fines for Compliance non-compliance with laws and regulations concerning the provision and use of products and services Remark - -" UNGC : United Nations Global Compact UNGC : United Nations Global Compact CG : Corparate Governance Code of Conducts Handbook CG : 1 ( 1!+ !+ ( 8 The data is corresponded with GRI G3 Guideline , 1+ + ( * * / GRI G3 The data is partially corresponded with GRI G3 Guideline , 1+ + ( ( * * / GRI G3

115

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&RQWDFW 'HWDLOV For more information, please refer to 2010 Annual Report or please contact the Corporate Social Responsibility Department of PTT Chemical Public Company Limited at Energy Complex, Building A, 15th - 18th Floors, 555/1 Vibhavadi Rangsit Road, Chatuchak, Bangkok 10900, Thailand. Telephone: +66 (0) 2265 8400 Fax: +66 (0) 2265 8500. PTT Chemical CSR Report may be downloaded through PTT Chemical’s website (http://www.pttchemgroup.com).

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555/1, Energy Complex, Building A, 15th-18th Floors, Vibhavadi Rangsit Rd., Chatuchak, Bangkok 10900, Thailand Tel: +66 (0) 2265-8400 Direct Line: +66 (0) 2265-8448 Fax: +66 (0) 2265-8500

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