20160307 pttgc sd 2015

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Embracing the Sustainable Value

SUSTAINABILITY REPORT 2015

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Embracing the Sustainable Value


We Contribute to a Better Living Together with Creating Economic, Social and Environmental Values for Sustainable Growth

Economic

Social

Environment


RReasonableness easonablenesss

Risk M anagement Management

Moderation

His Majesty the King’s Suf Sufficiency fficiiency Economy PPhilosophy hilosophy an and Our Business Reasonableness

Moderation

Economic

Medium and long term plan / Risk management / SWOT analysis / BSC and risk monitoring Sustainable investment : Financial ratio i.e. debt-to-equity ratio / Internal rate of return / DJSI guidelines / UNPRI

Social

Economic

Core uplift, expansion and organic growth Clear vision of growth strategy

Social

Country benefiting : contribution of Thai petrochemical industry to economy = 6%

Environment

Stakeholder expectation / Social satisfaction survey

Environment

GHG reduction / Eco-efficiency / Life Cycle Assessment / 3Rs / Green procurement / Green process and product / Responsible care

1st quartile performance in operational excellence i.e. energy efficiency Green strategy i.e. Bio-chemicals / Bioplastics / Biodiesel

Risk Management Economic

Business Continuity Plan [BCP] Preparedness and crisis management

Social

United Nations Global Compact / United Nations Environmental Program / etc. License to operate / Community development / Employee volunteer / Stakeholder engagement / etc.

Environment

Clean Development Mechanism / Carbon Disclosure Project / etc.

Knowledge Learning Organization Knowledge Management Operational Excellence

Global Mindset

Customer Focus

Synergy Performance Innovation Responsibility Integrity and Trust and Excellence for Society Ethics Respect


Sustainability Policy At PTT Global Chemical Public Company Limited, three pillars must be taken into consideration for conducting sustainable business - economy, social and the environment - in all that we do. We believe that a balance can be achieved if we remain focus and open to new innovations and concepts.

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Creating Chemistry Innovation for a Healthy and Sustainable Future

Wealthy Economy We aim to grow our company through the adoption of sustainable principles in our daily business practices to achieve sustainable business growth. We seek to achieve this through the incorporation of innovation - both strategically and operationally. <EĂżKS9Q CW_= TMCTDb;$TE@S4;TO*' $EbM _7V<a7 a6DDX6MGS$_$53 6 T;'ITCDSg*DY;CTb- b;$TE6U_;V;:ZE$V+%O*<EĂżKS9Q > T;$TE;U;IS7$EECc=b- 9Sh*b;_-V*$GDZ9: `GR$TE6U_;V;*T; _@YgObM :ZE$V+_7V<a7OD T*DSg*DY;

Well-Being Society As a global company, we are committed to continue embracing the principles of United Nations Global Compact LEAD. To create value and contribute to our stakeholder and the world, we continuously integrate the principles into every area of our operations. b;2T;R9Wg_= ;<EĂżKS9ER6S<aG$ <EĂżKS9Q CW'ITCCZ *CSg;b;$TE=1V<S7V7TC_$53 %Sh;L[*LZ6%O*% O7$G*aG$`M *LM=ER-T-T7V ÂĽĂ’ÍÌùâå Ă‹ĂžùÌÏÍð Ă„ĂŠĂŹĂ&#x;ÞÊ ÀÏêíÞà ù ÉÂžà Œ OD T*7 O_;YgO*b;9Z$6 T;%O*$TE6U_;V;*T;%O*<EĂżKS9Q _@YgOLE T* 'Z5' TbM `$ >[ CWL I;c6 _LWD%O*<EĂżKS9Q `GRaG$%O*_ET

Better Environment We understand and value our place in the environment and seek to assure our responsibility by driving change for better environment through our operations and supply chain. We believe the innovation will help us deliver better products to our customers, while reduce the environmental impacts throughout the supply chain. <EĂżKS9Q _% Tb+`GRbM 'Z5' Tb;$TE_= ;L I;M;Xg*%O*LVg*`I6G OC`GR`L6*OO$8X*'ITCES<>V6-O< a6D$TE%S<_'GYgO;bM CW $TE_=GWgD;`=G*=ES<=EZ*LVg*`I6G OCbM 6W%Xh; > T;$ER<I;$TE6U_;V;*T;`GRM I*a. OZ=9T;%O*<EĂżKS9Q _@ETR<EĂżKS9Q _-YgOI T$TE%S<_'GYgO;6 T;;IS7$EEC +R- IDbM <EĂżKS9Q L *CO<>GV7BS53 9Wg6WbM $S<G[$' T@E OC9Sh*- IDG6>G$ER9<6 T; LV*g `I6G OC7GO6M I*a. O=Z 9T;

In line with our vision to be “A Leading Chemical Company for Better Livingâ€? and our mission of sustainable growth, this sustainability policy forms the first part of our sustainability framework, which we will seek to deliver a better tomorrow to our stakeholders, through our managements and our employees. LO6'G O*$S<IĂżLDS 9SJ; %O*<EĂżK9S Q b;$TE_= ; >[; Ub;:ZE$V+_'CWB5 S 3 _@YOg LE T*LEE' '5 Z BT@-WI7Ăż `GR@S;:$V+b;$TE_7V<a7OD T*DS*g DY; ;aD<TD$TE<EĂżMTE+S6$TE'ITCDS*g DY;;Wh _= ;7 ;`<<%O*$EO<'ITCDSg*DY;%O*<EĂżKS9Q _@YgOb- b;$TEL *CO<O;T'79Wg6W%Xh;bM $S<>[ CWL I;c6 _LWD> T;? TD<EĂżMTE`GR@;S$*T;%O*<EĂżKS9Q


Sustainability Performance in Focus

ECO NO M IC

SALE REVENUE

STRATEGIC PARTNERS

Million Baht

Partners

1,778

400,128

ENVIRONM E N T

ENERGY SAVING

1.71

EBITDA

Million GJ

50,873 Million Baht

100%

PRODUCT GRADES CARBON FOOTPRINT CERTIFIED

% WASTE TO LANDFILL

0

WATER RECYCLED

36.8%

GHG EMISSION REDUCTION (Scope I and II)

0.27

Million Tons CO2 equivalent EMPLOYEES

5,738 HR DEVELOPMENT INVESTMENT

Persons

1 23

Million Baht

Financial capital:

as the pool of funds available to an organization.

Manufactured capital: mainly comprises of physical infrastructure

Intellectual capital:

is intangibles that provide competitive advantage


NO. OF PATENTS APPLICATION FILED LOCALLY AND INTERNATIONALLY 9 Applications TOTAL R&D EXPENDITURE

387

Million Baht

CUSTOMER SATISFACTION SCORE

8.86/ 10 NO. OF R&D PROJECTS IN OUR PIPELINE > 100 Projects

Total Environment Expenditures

467

Million Baht

TRIR (TOTAL RECORDABLE INJURY RATE)

0.37

ENVIRONMENTAL INVESTMENT

Case/1 Million Manhours

1,550

Million Baht LTIFR (LOST-TIME INJURY FREQUENCY RATE) 0 . 0 9 Case/1 Million Manhours

SOCIAL

COMMUNITY SATISFACTION

86.02% EMPLOYEE ENGAGEMENT SCORE

SOCIAL ACTIVITIES INVESTMENT 223 Million Baht

85.76%

Human capital:

refers to People’s skills and experiences, as well as their capacities and motivations to innovate

Social and relationship capital:

is the stock of resources created by the relationships between an organization and all its stakeholders

Natural capital:

is an input to the production of goods or the provision of services.


PTTGC is the only chemical company from Thailand and ASEAN that has obtained the Silver Class distinction from RobecoSAM, one of the world's most trusted and accepted sustainability rating agencies.The distinction confirmed that PTTGC is intergrating sustainability performances across the value chain and at the global level. Additionally, the annual assessment of companies' sustainability by RobecoSAM is also used for selecting component of DJSI inclusion. The result of the 2015 assessment confirmed the inclusion of PTTGC in the DJSI World members for the third consecutive year. ¿¿²Ž W5 34=ĂžC1K W ;O:K + XE "W.O<A#L 5=JW1B[1<X?JZ3:S;:N L GLW&O<3 1O_[. =4K =L"AK? AL;Y..W. 31O=_ J.K4W"Ăž3#L ½ĂšĂ?Ă?ĂŽĂšž¸ &P"_ W5 3E3 A<"L3 1O_#K.GK4.K4 L=8K,3LG< L"<K_"<Q31O_;O AL;3 LW%Q_G0QGX?JW5 31O_<G;=K4 XE "E3P_" G"Y? =L"AK?.K" ? LA[. /G <`M L=.MW3N3"L3. L3 L=8K,3L G< L"<K_"<Q3/?G.E A"Y& GR51L3X?J AL;W5 3DL ?Z3 L=.MW3N3 L= . L3 L=8K,3LG< L"<K_"<Q3 G" ¿¿²Ž 3G #L 3O` 6? L=5=JW;N3 5=J#M5 Â?  £ G" ½ĂšĂ?Ă?ĂŽĂšž¸ <K"[. 3M[5Z% Z3 L=#K.GK4.K4 G" DJSI &P"_ ¿¿²Ž W5 34=ĂžC1K W ;O:K + %3`K 3M=J.K4Y? 1O_[. =4K L=#K.GK4.K4 Z3 ¯¾ž´ W5 35 1O_ ž /N./ G K3


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" I WOULD LIKE TO EXPRESS OUR UTMOST APPRECIATION FOR ALL THE SUPPORTS AND TRUST, THE HEART OF GROWING SUSTAINABLY TOGETHER WITH THAI SOCIETY."


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Awards and Recognitions The commitments to operate our business with sustainability can be demonstrated through the awards and success we received both nationally and internationally. Our pride from the awards and recognitions has been motivating us in striving for better.

DOW JONES SUSTAINABILITY INDICES

BOARD OF THE YEAR 2015

PTTGC was in the Top 10 Dow Jones Sustainability Indices (DJSI) - World Members in the Chemicals sector for 3rd consecutive year and in Silver Class in 2015.

PTTGC received Board of the Year for Distinctive Practices in 2015 for the 2nd time from Thai Institute of Directors Association and other six leading organizations.

FORBES GLOBAL 2000

ASEAN CG SCORECARD

PTTGC was ranked at the 1033 th in Forbes 2015 Global 2000 (World’s Biggest Companies). Four aspects have been taken into consideration for the evaluation : Sales, Profits, Assets, and Market Value.

PTTGC received ASEAN Corporate Governance Scorecard : TOP 5 ASEAN PLCs and TOP 3 of good governance of the Thailand PLCs from institution ASEAN Capital Market Forum: ACMF.

BEST MANAGED COMPANY IN ASIA

ICIS

PTTGC received the Best Managed Company - Oil / Gas / Chemicals / Petrochemicals in Asia, Overall Award 2015 from the EUROMONEY.

PTTGC was ranked at the 17th in the 2015 ICIS Top 100 global chemical companies with outstanding operational excellence.

BEST ELECTRONIC BANKING IMPLEMENTATION, THAILAND

PETROCHEMICALS COMPANY OF THE YEAR

PTTGC received the Best Electronic Banking Implementation from The Asset Triple A Transaction Banking: Asset Asian Awards 2015.

PTTGC received Petrochemicals Company of the Year 2015 Award from the Petroleum Economist, England.

Economic


Social

UN GLOBAL COMPACT: LEAD

GLOBAL REPORTING INITIATIVES

PTTGC is the first company in Thailand that made a commitment to the UN Global Compact at the highest level : LEAD.

PTTGC Sustainability Report 2014 was in accordance with the Global Reporting Initiative G4 guidelines, for 2nd consecutive year.

ESG 100 COMPANY

GOLDEN PEACOCK AWARD FOR EXCELLENCE IN CORPORATE GOVERNANCE

PTTGC was ranked ESG 100 2015 (ESG 100 Companies) from Thaipat Institute. PTTGC is a listed company that has been prominent in sustainable business practices that are exposed to society.

Environment

PTTGC received Golden Peacock Award for Excellence in Corporate Governance 2015 from Institute of Director, India.

BEST CSR & BEST ENVIRONMENTAL RESPONSIBILITY 2015

SUSTAINABILITY REPORT AWARD 2015

PTTGC received the Best CSR and Best Environmental Responsibility 2015 from Corporate Governance Asia.

PTTGC received Sustainability Report Award 2015 in Outstanding category from CSR Club, Thai Listed Companies Association, The Securities and Exchange Commission and Thaipat Institute.

CLIMATE DISCLOSURE LEADER 2015

ASEAN ENERGY AWARDS 2015

PTTGC was recognized by the CDP as a Climate Disclosure Leader for the 3rd consecutive year, receiving full score (100). CDP is a widely accepted organization that assesses environmental management of companies worldwide.

PPCL representing Thailand, received ASEAN Energy Awards 2015 in Industry Special Submission Category from ASEAN Center for Energy.

ECOMAGINATION AWARDS 2015

PRIME MINISTER’S INDUSTRY AWARDS 2015

PTTGC branch 2 & 3 received Ecomagination Leadership Award and PTTGC branch 2 received Return on Environmental Award: ROE from GE Water and Process Technologies Co., Ltd. (GEWT).

PTTGC received nine Prime Minister’s Industry Awards 2015 in five categories on Environmental Management, Energy Management, Productivity, Quality Management and Safety Management from Ministry of Industry.

CARBON FOOTPRINT REDUCTION

THAILAND GREEN DESIGN AWARDS

Products of Polyethylene, Aromatics, Petroleum, Green Chemicals and Ethoxylate of PTTGC Group were certified for Carbon Footprint Reduction from Thailand Greenhouse Gas Organization (Public Organization). This reflected our commitment to minimize environmental impact from our products.

PTTGC received Thailand Green Design Awards 2015 in Honorary Award category, - Product for Life Enhancement from Kasetsart University.


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DOW JONES SUSTAINABILITY INDICES 266)% ģ÷ňĆýĔ âĕĆéĔ÷ĐĔü÷Ĕýéĕâ &QY ,QPGU 5WUVCKPCDKNKV[ +PFKEGU &,5+ 9QTNF /GODGTU øŇĐğüĚħĐèğþŎüþĿúĘħ ìęħèğþŎü Ģü ýĆėČúĔ ğåĄĘăö Ĕ ôŋëüĔĨ üĬĕãĐèġĈâ þĆēéĬĕþĿ ĠĈēĐąĜŇĢüĆē÷Ĕý 5KNXGT %NCUU

BOARD OF THE YEAR 2015 266)% ģ÷ňĆĔýĆĕèĊĔĈåöēâĆĆĄâĕĆĠĎŇèþĿ ÷Ę ğ ÷Ň ü ğþŎ ü åĆĔĨ è úĘħ éĕâčĄĕåĄ čŇèğčĆėĄčùĕýĔüâĆĆĄâĕĆýĆėČĔúģúą +1& ĠĈēĐĘâ ĐèåŋâĆăĕåğĐâëüëĔĨüüĬĕ

FORBES GLOBAL 2000

ASEAN CG SCORECARD

266)% ğþŎ ü ĐĔ ü ÷Ĕ ý úĘħ éĕââĕĆéĔ ÷ ĐĔ ü ÷Ĕ ý ýĆė ČĔ ú é÷úēğýĘ ą üúĘħ ĄĘ åĊĕĄġ÷÷ğ÷ŇüéĕâúĔħĊġĈâ þĆēéĬĕþĿ ġ÷ąāėéĕĆöĕéĕâ þŌééĔą ģ÷ňĠâŇ ąĐ÷ãĕą âĬĕģĆ čėüúĆĔāąŋ ĠĈēĄĜĈåŇĕúĕèâĕĆøĈĕ÷

266)% ģ÷ňĆĔýĆĕèĊĔĈ #5'#0 %QTRQTCVG )QXGTPCPEG 5EQTGECTF čĜèčě÷úĘħĆē÷Ĕý 612 #5'#0 2.%U ĆĕèĊĔ Ĉ 612 6JCKNCPF 2.%U éĕââĕĆþĆēğĄėüġ÷ąâĈěŇĄ â Ĉ ø ĐĕğìĘąü #5'#0 %CRKVCN /CTMGV (QTWO #%/( þĆēéĬĕþĿ

BEST MANAGED COMPANY IN ASIA

ICIS

266)% ģ÷ňĆýĔ ĆĕèĊĔĈ $GUV /CPCIGF %QORCP[ 1KN )CU %JGOKECNU 2GVTQEJGOKECNU KP #UKC 1XGTCNN þĆēéĬĕþĿ éĕâčùĕýĔü '741/10';

266)% ğþŎüĐĔü÷ĔýúĘħ éĕââĕĆéĔ÷ĐĔü÷Ĕý ýĆėČĔúëĔĨüüĬĕĢüûěĆâėéþľġøĆğåĄĘãĐè +%+5 āéė ĕĆöĕéĕâÿĈâĕĆ÷ĬĕğüėüèĕüúĘ÷ħ ğĘ ąĘąħ Ą ĠĈēâĕƹХĆĔýéĕâûěĆâėéĠĈēÿĜňĄĘčŇĊüģ÷ň ğčĘąĢüþĿ

BEST ELECTRONIC BANKING IMPLEMENTATION, THAILAND

PETROCHEMICAL COMPANY OF THE YEAR

266)% ģ÷ňĆĔýĆĕèĊĔĈ $GUV 'NGEVTQPKE $CPMKPI +ORNGOGPVCVKQP éĕâ 6JG #UUGV 6TKRNG # 6TCPUCEVKQP $CPMKPI #UUGV #UKCP #YCTFU þĆēéĬĕþĿ

266)% ģ÷ňĆýĔ ĆĕèĊĔĈ 2GVTQEJGOKECNU %QORCP[ QH 6JG ;GCT þĆēéĬĕþĿ éĕâčùĕýĔü 2GVTQNGWO 'EQPQOKUV þĆēğúċĐĔèâćČ

Economic


Social

UN GLOBAL COMPACT: LEAD

GLOBAL REPORTING INITIATIVE

266)% þñėýĔøėøĕĄâñýĔøĆčĕâĈġĈâĠĎŇè čĎþĆēëĕëĕøė ĠĈēğþŎ ü ýĆė ČĔ ú ĠĆâĢü þĆēğúċģúąúĘħğþŎüčĄĕëėâĆē÷ĔýÿĜňüĬĕčĜèčě÷ .'#&

266)% ģ÷ňĆĔýâĕĆĆĔýĆĐèåĊĕĄùĜâøňĐèéĕâ )NQDCN 4GRQTVKPI +PKVKCVKXG ) ìęħèğþŎü ğâöôŋĢĎĄŇ ĠĈēğþŎüĆē÷ĔýčĜèčě÷ĢüâĕĆéĔ÷ úĬĕĆĕąèĕüâĕĆāĔõüĕĐąŇĕèąĔèħ ąĚü þĆēéĬĕþĿ ğþŎüþĿúĘħ øė÷øŇĐâĔü

ESG 100 COMPANY

GOLDEN PEACOCK AWARD FOR EXCELLENCE IN CORPORATE GOVERNANCE

266)% ģ÷ňĆýĔ þĆēâĕċüĘąýĔøĆĆĕèĊĔĈ '5) '5) %QORCPKGU ĠĈē ģ÷ň ĆĔ ý ÿĈâĕĆþĆēğĄėüĆē÷ĔýâĕĆāĔõüĕåĊĕĄąĔèħ ąĚü ÷ňĕü #PVK %QTTWRVKQP ĢüĆē÷Ĕý Ćē÷ĔýčĜèčě÷ úĘħãąĕąÿĈčĜŇÿĜňğâĘħąĊãňĐèĢüğĆĚħĐèâĕĆþŃĐèâĔü âĕĆĄĘčĊŇ üğâĘąħ ĊãňĐèâĔýåĐĆŋĆþĔ ëĔü

BEST CSR & BEST ENVIRONMENTAL RESPONSIBILITY 2015

Environment

266)% ģ÷ňĆĔýĆĕèĊĔĈ )QNFGP 2GCEQEM #YCTFU þĆēéĬĕþĿ éĕâčùĕýĔü +PUVKVWVG QH &KTGEVQTU þĆēğúċĐėüğ÷Ęą ĢüòĕüēĐèåŋâĆ úĘĄħ âĘ ĕĆýĆėĎĕĆéĔ÷âĕĆ÷ňĕüâĕĆâĬĕâĔý÷ĜĠĈâėéâĕĆ úĘħġ÷÷ğ÷Ňü

SUSTAINABILITY REPORT AWARD 2015

266)% ģ÷ňĆĔýĆĕèĊĔĈ $GUV %54 ĠĈē $GUV 'PXKTQPOGPVCN 4GURQPUKDKNKV[ éĕâ üėøąčĕĆ %QTRQTCVG )QXGTPCPEG #UKC þĆēéĬĕþĿ

266)% ģ÷ňĆĔýĆĕèĊĔĈĆĕąèĕüåĊĕĄąĔħèąĚü þĆēéĬĕþĿ þĆēğăú ÁĆĕèĊĔĈ÷Ęğ÷Ňü éĕâ %54 %NWD čĄĕåĄýĆėČĔúé÷úēğýĘąüģúą čĬĕüĔâèĕüåöēâĆĆĄâĕĆâĬĕâĔýĎĈĔâúĆĔāąŋ ĠĈēøĈĕ÷ĎĈĔâúĆĔāąŋĒ ĠĈēčùĕýĔüģúąāĔõüŋ

CLIMATE DISCLOSURE LEADER 2015

ASEAN ENERGY AWARDS 2015

ģ÷ň ĆĔ ý âĕĆéĔ ÷ ĐĔ ü ÷Ĕ ý øŇ Đ ğüĚħ Đ èğþŎ ü þĿ úĘħ ĢüâĈě Ň Ą ÿĜ ň üĬ ĕ ÷ň ĕ ü %NKOCVG 5VTCVGI[ úĘħåēĠüü ğøĦĄ éĕâġåĆèâĕĆ %CTDQP &KUENQUWTG 2TQLGEV %&2 čùĕýĔüĆē÷ĔýġĈâ úĘħģ÷ňĆĔýâĕƹХĆĔýčĜèčě÷÷ňĕüâĕĆþĆēğĄėü âĕĆýĆėĎĕĆ éĔ÷âĕĆčėħèĠĊ÷ĈňĐĄ

22%. ğþŎüøĔĊĠúüþĆēğúċģúąĠĈēģ÷ňĆĔý ĆĕèĊĔĈëüēğĈėċ #5'#0 'PGTI[ #YCTFU þĆēğăú +PFWUVT[ 5RGEKCN 5WDOKUUKQP éĕâċĜüąŋāĈĔèèĕüĐĕğìĘąü

ECOMAGINATION AWARDS 2015

PRIME MINISTER’S INDUSTRY AWARDS 2015

266)% čĕãĕ ĠĈē ģ÷ň ĆĔ ý ĆĕèĊĔ Ĉ ÿĜüň ĕĬ čĆňĕèčĆĆåŋğāĚĐħ čėèħ ĠĊ÷ĈňĐĄ ĠĈē 266)% čĕãĕ ģ÷ňĆýĔ ĆĕèĊĔĈâĕĆāĔõüĕåĊĕĄğþŎüĄėøĆ øŇĐčėèħ ĠĊ÷ĈňĐĄ éĕâýĆėČúĔ éĘĐ Ę ĊĐğøĐĆŋ ĠĐü÷ŋ ġāĆğìčğúåġüġĈąĘ )'96

266)% ģ÷ňĆĔýĆĕèĊĔĈ 2TKOG /KPKUVGT¿U +PFWUVT[ #YCTFU ĆĕèĊĔĈ Ģü þĆēğăú ģ÷ňĠâŇ þĆēğăúâĕĆĆĔâČĕåěöăĕāčėèħ ĠĊ÷ĈňĐĄ þĆēğăúâĕĆéĔ÷âĕĆāĈĔèèĕü þĆēğăúâĕĆğāėĄħ ÿĈÿĈėø þĆēğăúâĕĆýĆėĎĕĆèĕüåěöăĕā ĠĈēþĆēğăúâĕĆýĆė Ď ĕĆåĊĕĄþĈĐ÷ăĔ ą éĕââĆēúĆĊèĐěøčĕĎâĆĆĄ

CARBON FOOTPRINT REDUCTION

THAILAND GREEN DESIGN AWARDS

ÿĈė ø ăĔ ö ôŋ ā Ĉĕčøė â ġāĈĘ ğ Đúė ĈĘ ü 2' čĕĆĐēġĆğĄøė â čŋ ÿĈė ø ăĔ ö ôŋ þ ľ ġ øĆğĈĘ ą Ą ğåĄĘăö Ĕ ôŋğāĚĐħ čėèħ ĠĊ÷ĈňĐĄĠĈēčĕĆĐĘúĐâìėğĈú úĔèĨ ĎĄ÷ãĐèâĈěĄŇ 266)% ģ÷ňĆýĔ ğåĆĚĐħ èĎĄĕą êĈĕâĈ÷ġĈâĆňĐüéĕâĐèåŋâĕĆýĆėĎĕĆéĔ÷âĕĆ âʼnĕìğĆĚĐüâĆēéâ ĐèåŋâĕĆĄĎĕëü Ġč÷èùęè åĊĕĄĄěŇèĄĔħüĢüâĕĆÿĈėøčėüåňĕúĘħĈ÷ÿĈâĆēúý øŇĐčėħèĠĊ÷ĈňĐĄ

266)% ģ÷ňĆýĔ ĆĕèĊĔĈ 6JCKNCPF )TGGP &GUKIP #YCTFU þĆēğăú *QPQTCT[ #YCTF čĕãĕ 2TQFWEV HQT .KHG 'PJCPEGOGPV éĕâ ĄĎĕĊėúąĕĈĔąğâČøĆċĕčøĆŋ


16

About This Report

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22 STAKEHOLDER'S OPINION “PTTGC is a leading organization in the petrochemicals industry that, at the same time, demonstrates genuine care for society and the environment. For example, PTTGC continuously advances towards greenhouse gas emissions reduction to help alleviate problems related to global warming, in alignment with the 21st Session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC COP21). Nevertheless, PTTGC should place greater emphasis on communicating its activities to the public, in order to inform society about the organization’s valuable contributions, including how PTTGC operates its business with state-of-the-art technologies and implements CSR activities to share benefits with local communities and society.â€? ú¿¿²Ž 3K4W5 3G" =%K3` 3dL1O;_ BO K <:L8Z3 L=.dLW3N32R= N#5 Y/=W ;O Z3 -J W.O<A K3 ^ dL3P"0P"DK" ;X?JDN_"XA.? G; W% 3 L=W.N3E3 LG< L"#=N"#K"W8Q_G ?. L=5? G< L&W=QG3 =J# X?J.dLW3N3 L=[. G< L"%K.W#3;LG< L"/ GW3QG_ "W8QG_ % A< ?.5 }ELY? = G3 DG. ? G" K4 L=5=J%R;=K*:L OG3RDK}}LDE5=J%L%L/N A L. A< L=W5?O_<3X5?"D:L8:S;NGL LBD;K<1O_ Â?Âœ G< L"[= ^.O ¿¿²Ž A=W3 3 L=DQ_ G DL=ZE ; L <N_ " P` 3 W8Q_ G ZE DK " ;[. =K 4 1=L4Z3DN_ " 1O_ 4 =N CK 1 I .d L W3N 3 L=[. .O G <S X ? A W% 3 L=.d L W3N 3 2R = N # . A <W1 Y3Y?<O 1O_ 1K 3 D;K < E=QGY =" L=W8Q_GDK" ;/ L"] 1O_4=NCK1I [. ;G4ZE X %R;%3X?JDK" ;Ăť

Mrs. Prasertsuk Chamornmarn 3L"5=JWD=N*DR #L;=;L3 Director of Thailand Greenhouse Gas Management Organization (Public Organization) 6S GdL3A< L= G" L=4=NEL=#K. L= L&W=QG3 =J# “G" L=;EL%3”


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STAKEHOLDER'S OPINION “As an environmental expert, apart from PTTGC focusing on global environmental issues, such as climate change, where PTTGC has already operated according to national and international standards, the one area where PTTGC can place greater emphasis is on environmental issues at the national level, waste in particular. I would like PTTGC to take Eco-design into consideration, in order to design recyclable and/ or re-usable products. It is necessary to start from the product design phase to ensure the least amount of environmental impact along a product’s life cycle.�

Asst. Prof. Dr. Pomthong Malakul Na Ayudhaya 6B™.=™ 5;1G" ;L?L R? - G<R2<L The Dean of The Petroleum and Petrochemical College (PPC), Chulalongkorn University -4.O AN1<L?K<5 Y/=W?O<;X?J5 Y/=W ;O

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29



About PTTGC


32

About PTTGC

(G4-3, G4-4, G4-5, G4-6, G4-7, G4-8, G4-9, G4-10, G4-40, G4-56, G4-57 , G4-58)

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VISION

MISSION

TARGET

TO BE A LEADING CHEMICAL COMPANY FOR BETTER LIVING

PARTNERS ÂŹ '[ ' T

TO BE ONE OF THE TOP INDUSTRY LEADERS IN THREE ASPECTS

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We provide superior solutions from innovative products and services to be the best choice for business partners _= ;9T*_GYO$9Wg6W9WgLZ6`$ '[ ' T6 IDLV;' T `GR<EV$TE_-V*;IS7$EEC

SHAREHOLDERS ÂŹ >[ 8YOMZ ;

We deliver fair benefit and sustainability to stakeholders through management and excellence business performance

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Create balance in business, social and environmental management for sustainable growth

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SOCIETY ÂŹ LS*'C

We integrate social and environmental considerations into our business operation for sustainable development

Create continuous growth as a frontline leader in petrochemicals and chemicals industry with an integrated production complex and investment in countries throughout the world

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RETURN ON INVESTMENT / 6 T;>G7O<`9;+T$$TEG*9Z;

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Create secure returns for investors to build their confidence in the company and ensure that all stakeholder groups receive fair benefits LE T*>G7O<`9;9Wg`; ;O;7 O;S$G*9Z; bM CW'ITC_-YgOCSg; `GR7 O>[ CWL I;c6 _LWD OD T*_= ;:EEC


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SUSTAIN CORE

ACCELERATE GROWTH

400,128 MILLION BATH 50,873 MILLION BATH SALES REVENUE

EBITDA

8.86/10 CUSTOMER SATISFACTION

387 MILLION BATH

6 SUBSIDARY COUNTRIES

TOTAL R&D EXPENDITURE

THAILAND FRANCE INDONESIA MALAYSIA UNITED STATES OF AMERICA GERMANY

GREEN 3%

REVENUE FROM GREEN

STRENGTEN ENABLERS 7.4 MILLION TONS CO2 EQUIVALENT GHG EMISSION (SCOPE 1 & 2)

223 MILLION BATH

CONTRIBUTION TO SOCIETY

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86.02%

COMMUNITY SATISFACTION

0

85.76%

EMPLOYEES ENGAGEMENT

LOSS OF PRIMARY CONTAINMENT (LOPC)

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33


Business Value Chain FEEDSTOCK

UPSTREAM

INTERMEDIATES

EO ETHYLENE BUTENE-1

NATURAL GAS

PROPYLENE

EB / SM PO

POLYOLS

MIXED C4s

BUTADIENE

BENZENE

CUMENE

PHENOL ACETONE

CYCLOHEXANE HMDA

CONDENSATE

HDI

TOLUENE TDI

PARAXYLENE

PTA

ORTHOXYLENE

PA

CRUDE OIL

CRUDE PALM OIL

FATTY ALCOHOL OLEOCHEMICALS METHYL ESTER (B100)

AGRICULTURAL PRODUCTS Group Performance Center-Refinery & Shared Facilities Group Performance Center-Aromatics

Group Performance Center-Olefins Polymers Business Unit

EO-based Performance Business Unit Green Chemicals Business Unit


Fue Lub

Petr

och

emi

rica

l

DOWNSTREAM

END INDUSTRIES

nts

cals

MEG

Biofu

el

HDPE LDPE

Packaging

LLDPE ETHANOLAMINE ETHOXYLATE

Personal Care

PS ABS PP SBR BPA MMA

PC EPOXY RESINS PMMA

CAPROLACTAM

NYLON 6

System House

NYLON 6,6

ADIPIC ACID

Pharmaceutical

Automotive

PU POLYESTER FIBER

Construction

PET PLASTICIZER PETROLEUM PRODUCTS - LPG - REFORMATE - LIGHT NAPHTHA - JET A1 - DIESEL - FUEL OIL BIO-POLYMERS

Electronics

Textile

BIO-CHEMICALS

High Volume Specialties Business Unit Phenol Business Unit

PERSONAL CARE CHEMICALS

Potential Product Opportunities

Agriculture


36 CORPORATE GOVERNANCE

$TE$lT$S<6[`G$V+$TE9Wg6W

BOARD OF THE YEAR 2015 »¿¿ ²×ÚÍÌ× ®ÓÐØÔÎÌ× »àÍ×ÔÎ ®ÚØÛÌÙä ·ÔØÔßÐÏ ÝÐÎÐÔáÐÏ the “Board of the Year 2015” award for the second consecutive year from the Thai Institute of Directors Association (IOD), as well as a special award for being the top five among the highest-ranking organizations in the ASEAN CG Scorecard 2015. 4=NCK1 8O1O1O Y ?4G? W ;N G? #dL K. ;EL%3 =K4;G45=J LBW O<=/N R- ú -J ==; L=XE "5 £ ö .OW. 3û / GW3Q_G"W5 35 1O_ #L D;L ;D "WD=N; D0L4K3 ==; L=4=NCK1[1< ¿ÓÌÔ ´ÙÞßÔßàßÐ ÚÑ ¯ÔÝÐÎßÚÝ ¬ÞÞÚÎÔÌßÔÚÙ ¥ ´º¯ X?J=L"AK?8NWBCZ3*L3J1O_[. =K4 L=5=J LBZE W5 3 ¿º» G" ¬¾°¬¹ ®² ¾ÎÚÝÐÎÌÝÏ 5=J#dL5 £

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THREE FEMALE DIRECTORS IN PTTGC'S BOARD OF DIRECTORS

Mrs. Boobpha Amornkiatkajorn

Mrs. Watanan Petersik

Miss Ruenvadee Suwanmongkol

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PTTGC commits to basic human rights principles, including non-discrimination towards gender. We have three female directors who are highly qualified and widely recognized industry professionals. Their experiences in capital market, finance, accounting, audits, economics, international business and petroleum and petrochemical knowledge related to the Company’s business provide broader perspectives that is valuable for the Board’s action. Two of the three female directors have also been appointed as a Director of the Audit Committee and Director of the Risk Management Committee. Over the past year, they have performed their duties with careful diligence and have offered opinion and recommendations regarding finance, accounting, investment in a variety of projects, risk management and contract management in relation to the trade of key products, etc. L=1O4_ =NC1K I ;O ==; L=W8BE}N"&P"_ W5 36S1 =" R-AR,1N O_[. =4K L=<G;=K4Z3A" A L" 3G #L #JXD."0P" L=<P.E?K DN12N;3RC<%3 1O_ [; W?QG 5)N4K/NY.<[; W5 32==;=JEA L"W8BX? A AL;=S AL;DL;L=0 X?J5=JD4 L=- 1O_E?L E?L< G" ==; L=E}N" 1K"` DL;1 L3 G"4=NC1K I [; AL #JW5 3. L3/?L.1R3 4K}%Oš L=W"N3 L=/=A#DG4 WB=C*BLD/= 2R= N#=JEA L"5=JW1B =A;0P" AL;=S Z3. L35 Y/=W?O<; 5 Y/=W ;O 1O_W O_<A G" K42R= N#E?K G"4=NCK1I #J% A<D3K4D3R3X?JZE ;R;;G"1O_ A L" AL"GK3W5 35=JY<%3 / G L=5)N4K/NE3 L1O_ G" -J ==; L=4=NCK1I ==; L=E}N"DG"Z3DL;1 L3[. =K4X/ "/K`"ZE .dL="/dLXE3 " ==; L=W$8LJW=Q_G" [. X ==; L=/=A#DG4 X?J ==; L=4=NE L= AL;WDO_<"Y.<Z3=G45 1O_6 L3;L[. 5)N4K/NE3 L1O_. A< AL;=G4 G4 ZE GWD3GX3J AL; N.WE^3 X?J G A=8N#L=-L/ L"] 1O_W O_<A G" K4 L=W"N3 L=4K}%O L=?"1R3Z3Y =" L=/ L"] L=4=NEL= AL;WDO_<" X?J L=4=NEL=DK}}L&Q`G L<6?N/:K-+ 1O_DdL K} W5 3/ 3

37


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39


Sustainable Development Committee (SDC) '5R$EEC$TE$TE@S4;TOD T*DSg*DY;

Advisory Director Mr. Kun Patumraj ;TD$S +; =9ZCET-

Advisory Director Mr. Athavudhi Hirunburana ;TDOS43IZ4V MVES <[E5R

Chairman of the Board Mrs. Warawan Tippawanich ;T*IETIEE5 9V@@TI;V-

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5GPKQT 8KEG 2TGUKFGPV ¼ Corporate Affairs ÿĜňëŇĊąâĆĆĄâĕĆÿĜňéĔ÷âĕĆĢĎîŇ čĕąèĕüâėéâĕĆĐèåŋâĆ

Committee Mr. Patiparn Sukorndhaman ;TD=1VBT5 LZ';:CT;

Committee Mrs. Puntip Oungpasuk ;T*@S;: 9V@ OXh*>TLZ%

Committee Mrs. Sriwan Eamrungroj ;T*JEWIEE5 _OWgDCEZ *aE+;

%JKGH 1RGTCVKPI 1HÌEGT ¼ 7RUVTGCO 2GVTQEJGOKECN $WUKPGUU þĆēûĕüğéňĕĎüňĕúĘħþñėýĔøėâĕĆâĈěŇĄûěĆâėé þľġøĆğåĄĘãĔĨüøňü

'ZGEWVKXG 8KEG 2TGUKFGPV ¼ (KPCPEG #EEQWPVKPI ĆĐèâĆĆĄâĕĆÿĜňéĔ÷âĕĆĢĎîŇ čĕąèĕüâĕĆğèėüĠĈēýĔîëĘ

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Committee Mr. Varit Namwong ;TDIEV9:Vk ;TCI*K

Committee Mr. Kongkrapan Intarajang ;TD'*$ER@S; OV;9E`+ *

Committee Mr. Booncherd Suwantip ;TD<Z _-V6 LZIEE59V@D

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Committee Mr. Siridech Kumvongdee ;TDLVEV_6- 'Z CI*J 6W

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Committee Secretary Mrs. Pranee Poopair ;T*=ET5W B[ `@E

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RISK MANAGEMENT MEASURES FOR EMERGING RISKS CT7E$TEEO*ES<= ++SD_LWgD*9WgLU'S EVENTS _M7Z$TE5 A portion of the feedstocks used by PTTGC comes from natural gas reserves in the Gulf of Thailand where there is a decreasing trend of production, but an increasing trend in the production cost. This may impact the competitiveness and long-term sustainable growth of PTTGC.

RISK FACTORS = ++SD_LWgD*

Long-term feedstock (Quantity and Price) 6 T;IS78Z6V<b;ERDRDTI <b;ERDRDTI ¥=EVCT5`GRET'T¦ GRET'T¦

IS78Z6<V 9W<g EVK9S Q b- L I;M;X*g CT+T$`MG *$ T.:EEC-T7V b;O T Ic9D_EVg C CW ` ;Ia; C I T +R>GV 7 G6G*b;O;T'7 OW$9Sh*CW7 ;9Z;$TE>GV79WgL[*%Xh; .Xg*OT+L *>G$ER9< 7 O'ITCLTCTE8b;$TE`% *%S;`GR$TE_7V<a7ERDRDTI %O*<EVKS9Q OS;c=L[ 'ITCDSg*DY;

Global Climate Change is affecting rainfall in both ways: floods and droughts. As a result, sustainable water management is essential for every sector. +T$$TE_=GWDg ;`=G*LBT@B[COV T$TJ%O*aG$c6 L* >G 7 O=EVCT5;lhT?; .Xg*CWaO$TL_$V6c6 9Sh* ¯ GS$K5R 'YO =EVCT5;lTh ?;CT$c=MEYO; ODc= +X*7 O*CW$TE<EVMTE +S6$TE;lTh 9WDg *Sg DY;'EO<'GZC9Z$BT'L I;

Water Management (Floods and Drought) 6 T;$TE<EVMTE+S6$TE;lhT ¥;lhT9 IC`GR`G *¦

RISK MANAGEMENT MEASURES CT7E$TEEO*ES<'ITC_LWgD* Æêíïìóâ íïìáòàñæìë íïìàâððâð to support alternative feedstocks Æëñïìáòàâ ÞéñâïëÞñæóâ ãââáðñìàèð© which have a competitive economic value. =ES<=EZ*$ER<I;$TE>GV7%O*aE**T; bM EO*ES<IS78Z6V<c6 MGT$MGTDCT$%Xh; ;U_% TIS78Z6V<9T*_GYO$+T$`MG *OYg; 9WgCW'ITC'Z C' T9T*_JEK2JTL7E

Æêíéâêâëñ °Ïð Íïìçâàñð ¥Ïâáòàâ© Reuse and Recycle). ÍïâíÞïâ ÞááæñæìëÞé ôÞñâï ïâðâïóìæïð« ¾àñæóâéö âëäÞäâ ôæñå ñåâ äìóâïëêâëñ sector to support and promote the ôÞñâï êÞëÞäâêâëñ íïìçâàñð« 6U_;V;a'E*$TE °Ïð ¥Ïâáòàâ© Ïâòðâ `GR Ïâàöàé⦠6U_;V;$TE+S6MT`MG *;hULUEO*_@VgC_7VC CWL I;E IC$S<BT'ES2b;$TEL;S<L;Z;`GR >GS$6S;a'E*$TE7 T*e 9Wg_$WgDI% O*$S<$TE <EÿMTE+S6$TE9ES@DT$E;hU

Additional details of risk and crisis management can be found in the Annual Report and at http://www.pttgcgroup.com/th/governance/risk-management LUMES<ETDGR_OWD6%O*$TE<EÿMTE'ITC_LWgD*`GRLBTIRIÿ$F7V LTCTE8_@VgC_7VCc6 +T$ETD*T;=ER+U= `GR åññí·¬¬ôôô«íññäàäïìòí«àìê¬ñå¬äìóâïëÞëàâ¬ïæðèªêÞëÞäâêâëñ

41


42

2 Leadership BTIR>[ ;U 1 Risk Governance $TE$U$S<6[`G'ITC_LWgD* ÃìïêÞééö æáâëñæãö äìóâïëÞëàâ ðñïòàñòïâ Þëá âëãìïàâ ïæðè äìóâïëÞëàâ íìéæàö ñì ÍÑÑÄÀ ð ðòßðæáæÞïæâð CW$TE$UM;6;aD<TD$TE$U$S<6[`G'ITC_LWgD* 'EO<'GZCc=DS*<EÿKS9b;$GZ CEIC9Sh*CWa'E*LE T* b;$TE$U$S<6[`G$UM;6<9<T9 M; T9W'g ITCES<>V6-O< 9Wg-S6_+; `GR_= ;GTDGS$K5 OS$KE

6 Risk Management Knowledge 'ITCE[ 6 T;<EÿMTE+S6$TE'ITC_LWgD* ÀìêêòëæàÞñâð ïæðè êÞëÞäâêâëñ ñì ¿ìÞïá ìã Áæïâàñìïð© âõâàòñæóâð Þëá âêíéìöââð ßö íïìóæáæëä ñïÞæëæëä ñì âêíéìöââð© ðåÞïæëä èëìôéâáäâ Þëá æëãìïêÞñæìë óæÞ àìêíÞëö ëâôðéâññâïð Þëá àïâÞñæëä Þë âªéâÞïëæëä ðöðñâê ãìï ëâô âêíéìöââð« LYOg LTEbM 'ITCE[' ITC_% Tb+$TE<EÿMTE'ITC_LWDg * $S<$EEC$TE<EÿKS9Q >[ <EÿMTE`GR@;S$*T;9Z$ER6S< b;O*' $EEIC9Sh*+S6bM CW$TE? $O<EC`$ @;S$*T; _>D`@E 'ITCE[ % OC[G% TILTE7 T*e > T;+6MCTD% TI +S69UER<<$TE_EĀD;E[ OV_Gf$9EO;V$L ¥ÂªÉâÞïëæëä Ðöðñâê¦ bM $S<@;S$*T;9Wg_% TbMC

Ñåâ ¿ìÞïá ìã Áæïâàñìïð Þëá ðâëæìï âõâàòñæóâð ðòííìïñ ïæðè êÞëÞäâêâëñ óæÞ íìéæàæâð© ãïÞêâôìïèð Þëá äòæáâéæëâð© Þð ôâéé Þð ñì àéìðâéö Þëá àìëðæðñâëñéö êìëæñìï ñåâ íïìàâðð ìã ïæðè êÞëÞäâêâëñ« $EEC$TE<EÿKS9Q `GR>[ <EÿMTEER6S<L[*L;S<L;Z; $TE<EÿMTE+S6$TE'ITC_LWgD*> T;9T*;aD<TD $EO<`GR`;I9T*=1V<S7V EIC8X*CW$TE7V67TC 'ITC$ TIM; T6 T;$TE<EÿMTE+S6$TE'ITC_LWgD* OD T*b$G -V6`GR7 O_;YgO*

IS4;:EEC $TE+S6$TE'ITC_LWgD* (Risk Culture)

5 Risk Communication $TELYgOLTE6 T;'ITC_LWgD* Íïìóæáâð æëñâïëÞé àìêêòëæàÞñæìëð ñì ïÞæðâ ÞôÞïâëâðð ìã ïæðè êÞëÞäâêâëñ ñåïìòäå óÞïæìòð àåÞëëâéð ðòàå Þð êìëñåéö ëâôðéâññâï© èëìôéâáäâ ðåÞïæëä ãìï âêíéìöââð Þëá ðòßðæáæÞïæâð© âñà« Íïìóæáâð âõñâïëÞé àìêêòëæàÞñæìëð ñì áæðàéìðâ ïæðè êÞëÞäâêâëñ Þëá ïæðè ãÞàñìïð æë ñåâ ¾ëëòÞé Ïâíìïñ« ÊâÞðòïâð ñåâ âããâàñæóâëâðð ìã ñåâ àìêêòëæàÞñæìëð âêíéìöââ ðÞñæðãÞàñæìë ðòïóâöð Þëá ñåïìòäå ÌïäÞëæ÷ÞñæìëÞé ÅâÞéñå Æëáâõ ¥ÌÅƦ« CW$TELYgOLTEBTDb; _@YgOLE T*'ITC7ERM;S$6 T; $TE<EÿMTE'ITC_LWDg *> T;- O*9T*7 T*e %O*<EÿK9S Q _- ;$TE+S69U+6MCTD% TIETD_6YO; $TE9U Èëìôéâáäâ ÐåÞïæëä bM @;S$*T; `GR<EÿKS9b;$GZ C _= ;7 ; CW$TELYgOLTEL[ BTD;O$ > T;- O*9T*$TE_= 6_>D $TE<EÿMTE'ITC_LWDg *`GR= ++SD_LWDg *b;ETD*T;=ER+U= CW$TEIS6>G'ITCLSCF9:ÿ6k T ;$TELYOg LTE> T;$TE LUEI+'ITC@X*@Ob+`GR'ITC>[$@S;%O*@;S$*T; 7 OO*' $E ¥ÌïäÞëæ÷ÞñæìëÞé ÅâÞéñå Æëáâõ· ÌÅƦ

3 Risk Structure a'E*LE T*'ITC_LWgD* Ïæðè êÞëÞäâêâëñ ðñïòàñòïâ æð áæóæáâá æëñì ñåïââ éâóâéð· àìïíìïÞñâ© ßòðæëâðð ãòëàñæìëð Þëá ìíâïÞñæìëÞé éâóâéð« Ïæðè ÊÞëÞäâêâëñ Àìêêæññââ ¥ÏÊÀ¦© Âëñâïíïæðâ Ïæðè ÊÞëÞäâêâëñ Àìêêæññââ ¥ÂÏÊÀ¦ Þëá Âëñâïíïæðâ Ïæðè ÊÞëÞäâêâëñ Ãòëàñæìë åÞóâ ïìéâð æë äìóâïëæëä ïæðè êÞëÞäâêâëñ« Æáâëñæãö ïæðè íìéæàö© ïæðè Þííâñæñâ Þëá ïæðè ñìéâïÞëàâ« a'E*LE T*'ITC_LWDg * c6 `< *OO$_= ; ° ER6S< c6 `$ ER6S<O*' $E ER6S<LTD*T;`GRER6S<=1V<S7V$TE CW'5R$EEC$TE<EÿMTE'ITC_LWgD* ¥Ïæðè ÊÞëÞäâêâëñ Àìêêæññââ· ÏÊÀ© Âëñâïíïæðâ Ïæðè ÊÞëÞäâêâëñ Àìêêæññââ· ÂÏÊÀ¦ `GRM; ID*T;<EÿMTE'ITC_LWgD*O*' $E9UM; T9Wg $U$S<6[`G$TE<EÿMTE'ITC_LWgD* $UM;6;aD<TD$TE<EÿMTE'ITC_LWgD* ER6S<'ITC_LWgD*9WgDOCES<c6 `GRER6S<_<WgD*_<; 9WgDOCES<c6

4 Risk Technique _9';V'$TE+S6$TE'ITC_LWgD* ÍÑÑÄÀ åÞð Þáìíñâá ñåâ æëñâïëÞñæìëÞé ðñÞëáÞïáð· ÆÐÌ °®­­­ Þëá ÀÌÐÌ ãìï ïæðè êÞëÞäâêâëñ« Ïæðè êÞëÞäâêâëñ ñììéð æëàéòáâ Ïæðè Íïìãæéâ© Èâö Ïæðè ÆëáæàÞñìïð ¥ÈÏƦ© ñåâ Êìëñâ ÀÞïéì ÐæêòéÞñæìë© âñà« <EÿK9S Q c6 ;U_OTCT7E2T;LT$G ÆÐÌ °®­­­ `GR ÀÌÐÌ CTb- b;$TE<EÿMTE'ITC_LWDg * _'EĂOg *CYO9W;g UCTb- b;$TE<EÿMTE'ITC_LWDg * c6 `$ Ïæðè Íïìãæéâ 6S-;W-IhW 6S 'ITC_LWDg *9WLg U'S ¥Èâö Ïæðè ÆëáæàÞñìï· ÈÏƦ `GR Êìëñâ ÀÞïéì ÐæêòéÞñæìë _= ;7 ;


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RISK CULTURE

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Ă‚Ă‹Ă‘Ă‚Ă?Ă?Ă?ÆĂ?Ă‚ Ă?ÆĂ?Ăˆ ĂŠžĂ‹žĂ„Ă‚ĂŠĂ‚Ă‹Ă‘ ¡ $TE<EVMTE'ITC_LWgD*O*' $E PTTGC carries out Enterprise Risk Management (ERM) together with improving the risk maturity level by integrating feedback from stakeholders to the risk management process covering the strategic through operational levels. This enables a comprehensive risk identification and ensures the appropriateness and effectiveness of enterprise-wide risk management. This allows risk management to be assessed for effectiveness at the corporate level. 4=NC1K I [. .Ld W3N3 L=4=NEL= AL;WDO<_ "G" = “°Ă™Ă&#x;Ă?Ă?Ă›Ă?ÔÞĂ? ½Ă”ÞÖ ¸ĂŒĂ™ĂŒĂ’Ă?Ă˜Ă?Ă™Ă&#x; ÂĽ °½¸Â” A4 S [5 K4 L=8K,3L L=4=NEL= AL;WDO_<" G"G" =[5DS Z3=J.K4 1O_.O P`3 “½Ă”ÞÖ ¸ĂŒĂ&#x;Ă Ă?Ă”Ă&#x;ä” Y.<63A AL; N.WE^3#L 6S D A3[. WDO<W L[5Z3 L= =J4A3 L=#K. L= AL;WDO_<" G"G" = /K`"X/ =J.K4 ?<R12 #30P"=J.K4 L=.dLW3N3"L3W8Q_GZE ;K_3Z#A L[. =J4R5=JW.^3 AL;WDO_<"1O_DdL K} =40 A3 ;O;L/= L==G"=K4 AL;WDO_<"1O_;O5=JDN12N:L8X?JWE;LJD; GO 1K`"<K"DL;L=0 5=JW;N36?DK;>12Nc G" L=4=NEL= AL;WDO_<"[. =G4 ?R;1K_A1K`"G" =

43



Role Model in Product Stewardship


Role Model in Product Stewardship =ĕ N6 ĕ6 6'%9 +6%'5 8 1 Ĕ1 )8 $5 Ę

Key Figures

15 new products in 2015

6?N/:K-+ ZE; Z35 Â?  £ #M3A3 Âœ 6?N/:K-+

Total sales of environmentally friendly products: 4,791 million Baht

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Budget for research and development of environmentally friendly products: 8,022,000 Baht

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10,332 hours of employee volunteering

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Budget for social activities: 223 million Baht

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TARGET FOR 2015 _= TMCTD ¯²²µ

PERFORMANCE IN 2015 >G$TE6lT_;V;*T; ¯²²µ

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47


48 PRODUCT STEWARDSHIP

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Ă„ĂŒžĂ‰ _= TMCTD PTTGC focuses on the development of sustainable products, particularly green products and aims to ÎÚÙĂ?Ă ĂŽĂ&#x; ¡Ă”Ă‘Ă? ŽäĂŽĂ—Ă? ÞÞĂ?ĂžĂžĂ˜Ă?Ă™Ă&#x; Ă‘ĂšĂ? ĂŒĂ—Ă— Ă›Ă?ĂšĂ?Ă ĂŽĂ&#x; Ă’Ă?ĂŒĂ?Ă?Ăž Ă?ä Â?Â›ÂœÂĄ ĂŒĂ™Ă? Ă&#x;Ăš Ă“ĂŒĂĄĂ? ĂŒĂ—Ă— Ă›Ă?ĂšĂ?Ă ĂŽĂ&#x; Ă’Ă?ĂŒĂ?Ă?Ăž ĂŽĂ?Ă?Ă&#x;ÔÑÔĂ?Ă? with Carbon Footprint Reduction labels or Global Warming Reduction labels by 2020. Furthermore, PTTGC has projected to communicate on Product Safety and Toxicity disclosure in 2017. 4=N CK 1 I ;R " W3 3 8K , 3L6?N / :K - + W 8Q_ G AL;<K_ " <Q 3 “Sustainable Products” Y.<W$8LJG< L "<N_ " 6?N / :K - + 1O_ W5 3 ;N / =/ G DN_ " XA.? G ; “Green Products” X?J;O W 5 L E;L<Z3 L=5=JW;N 3 AK ) #K =%O AN / 1R W =.6?N / :K - + Z E X? A WD=^ # :L<Z35 Â?  ¤ =A;1K` " ZE 1R W =.6?N / :K - + [ . =K 4 $?L ?. L= 4 G39R / 8=N` 3 1 E =Q G $?L ?.Y? = G 3 (Carbon Footprint Reduction” Z35 Â? ¥Âž 3G #L 3O` 4=NCK1I ;OX63Z3 L=DQ_GDL= G;S?. L3 AL;5?G.:K< X?J AL;W5 38NC G"6?N/:K-+ “Product Safety and Toxicity Disclosure” Z35 Â? ¥Â›

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Biodegradable seeding bags awarded for environmental - care innovation < A"64 N6&Ĕ1&.)6&E ĕ B < N6A"64 )ĕ6E%ĕ E ĕ'5 '6 +5) +5 ''%'5 -ĘC)

PTTGC has developed biodegradable seeding bags with innovation compound formulated for drainage and aeration qualities good for root development in nursery, reducing risk of transplant shock to the tree seeding. With the specially developed formula, the bags attract micro-organisms and promote microbial degradation. The bags will serve as fertilizer when decomposed. With these environmentally friendly innovations, PTTGC âÚÙ Ă&#x;Ă“Ă? ´Ă™ĂĄĂ?Ă™Ă&#x;ÔÚÙ âĂŒĂ?Ă?Ăž Â?Â›ÂœÂĄ Ă‘Ă?ĂšĂ˜ Ă&#x;Ă“Ă? šĂŒĂ&#x;Ă”ĂšĂ™ĂŒĂ— Research Council of Thailand (NRCT) and the Thailand ²Ă?Ă?Ă?Ă™ ÂŻĂ?ÞÔÒÙ âĂŒĂ?Ă? Â?›œ Ă‘ĂšĂ? Ă&#x;Ă“Ă? úĂ?ĂšĂ?Ă ĂŽĂ&#x; Ă‘ĂšĂ? ¡Ă”Ă‘Ă? Enhancementâ€? category from the Kasetsart Agricultural and Agro-Industrial Product Improvement Institute, Kasetsart University. 4=NCK1I [. 8K,3L0R"8?LD/N %OA:L8DdLE=K4 L=W8LJ%dL Y.<[. N. 3DS/= G;8LA3. 1O_1dLZE 0R"W8LJ%dLDL;L=0< G<D?L<[. X?J;O R-D;4K/ZN 3 L==J4L<3dL` X?JGL LB[. . O D "6?ZE =L / 3G G31OW_ 8LJ Z30R"W8LJ%dL< G<D?L<[. X ^"X=" A L/ 3G G31OW_ 8LJZ30R"W8LJ%dL1KA_ [5 &P"_ % A<?.5 }EL L=/L< G"8Q%=JEA L"< L<5?S ?".N3 X?J. A<DS/= 1O_[. =4K L=8K,3L8NWBC1dLZE #?R 3N 1=O<D L;L=0< G<D?L<0R"W8LJ%dL ZE ?L<W5 35R <[. " L< P`3 . A<3AK/ ==;1O_W5 3;N/=/ GDN_"XA.? G;3O` D "6?ZE 4=NCK1I [. =K4 =L"AK?5=J LBW O<=/N R-6?"L35=J.NC* N. 3 5=J#dL5 Â?  ¤ #L D:LAN#K<XE "%L/N X?J=L"AK? ÂżĂ“ĂŒĂ”Ă—ĂŒĂ™Ă? ²Ă?Ă?Ă?Ă™ ÂŻĂ?ÞÔÒÙ âĂŒĂ?Ă? Â?›œ Z3DL L6?"L31O%_ A << =J.K4 R-:L8 L=Z% %AO /N “Ă?ĂšĂ?Ă ĂŽĂ&#x; Ă‘ĂšĂ? ×ÔÑĂ? Ă?Ă™Ă“ĂŒĂ™ĂŽĂ?Ă˜Ă?Ă™Ă&#x;” #L D0L4K3 3 A LX?J8K,3L6?N/6?1L" L= W C/=X?JGR/DLE ==;W C/= ;ELAN1<L?K<W C/=BLD/=

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52 PRODUCT HIGHLIGHT

Downgauging : Minimize the material use, but not quality )8 $5 Ę I9) 6'D ĕ+5 < 8 B Ĕ E%Ĕ) < $6"

PTTGC recognizes the future rising trend of raw materials's cost and the customers' need in cost saving, thus the downgauging projects have been established to minimize the use of raw materials, yet maintaining product's good functionality. In 2015, PTTGC served the frozen food industry by developing downgauged Ă›ĂŒĂŽĂ–ĂŒĂ’Ă”Ă™Ă’ Ă‘Ă?ĂšĂ˜ ¡Ă”Ă™Ă?ĂŒĂ? ¡Ăšâ ÂŻĂ?ÙÞÔĂ&#x;ä Ú×äĂ?Ă&#x;Ă“äĂ—Ă?Ă™Ă? “¡¡¯°Â” with good impact strength and good puncture resistance. The resulted film was 20 percent thinner and 10 percent cost saving. °ãĂŒĂ˜Ă›Ă—Ă?Ăž ÚÑ Ă?ĂšâĂ™Ă’ĂŒĂ Ă’Ă?Ă? Ă›Ă?ĂšĂ?Ă ĂŽĂ&#x;Ăž ÔÙÎ×à Ă?Ă? ÂĽ œ” ÂťĂŒĂŽĂ–ĂŒĂ’Ă”Ă™Ă’ for CPRAM frozen steamed bun and crab meat dumpilng, 2) Packaging for TUF export frozen salmon and squid, and ž” ÂťĂŒĂŽĂ–ĂŒĂ’Ă”Ă™Ă’ Ă‘ĂšĂ? Ž¹ Ă‘Ă?ÚüĂ?Ă™ Ă˜Ă?ĂŒĂ&#x;™ 4=NC1K I /=JE3K 0P"=L LAK/0R.4N 1O;_ XO 3AY3 ;#JDS" P3` X?J AL;/ G" L=?./ 31R3 G"?S L #P"AN#<K X?J8K,3L6?N/:K-+ 1O_Z% 1=K8<L =3 G<?"X/ <K" "5=JDN12N:L81O_.OW% 3W.N; Y.<Z35 Â?  £ 4=NCK1I 8K,3L6?N/:K-+ DdLE=K4GR/DLE ==; GLEL=X% X ^" 1O_ ? .5=N;L- L=Z% W ;^. 8?LD/N “¯ÚâĂ™Ă’ĂŒĂ Ă’Ă”Ă™Ă’Â” 5=JW:1Y8?OWG1N ?O3 AL;E3LX3 3 /d_LW%N"WD 3 “¡Ă”Ă™Ă?ĂŒĂ? ¡Ăšâ ÂŻĂ?ÙÞÔĂ&#x;ä Ú×äĂ?Ă&#x;Ă“äĂ—Ă?Ă™Ă?ÂĽ ¡¡¯°Â” X/ <K" "DL;L=0/G4D3G" AL;/ G" L= G"6S 4=NY: Z3. L3 R-:L8 AL;X ^"X="X?J AL; "13/ GX=" =JX1 D "6?ZE DL;L=06?N/9 ? ;1O_4L"?"= G<?J Â?› X?J% A<ZE ?S L?./ 31R3 AK/0R.N4[. 0P"= G<?J œ› /KAG< L"6?N/:K-+ 1O_4=NCK1I 8K,3L P`3 [. X œ” 0R"4==#R&L?LW5LX?JW Oa<A R "X% X ^" DdLE=K4DN3 LX4=3. &O8OX=; Â?” 0R"4==#R5?LX&?;G3X?J5?LE;P X% X ^" DdLE=K4DN3 LD "GG G"4=NCK1 [1<<SW3O_<3Y9=W& 3Y5=.K D #dL K. “;EL%3” X?J ž” 0R"4==#RW3Q`GDK/A X% X ^" DdLE=K4DN3 LX4=3. &O8OWG9


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56 INNOVATION MANAGEMENT

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Ă€ĂŒĂŠĂŠĂ†Ă‘ĂŠĂ‚Ă‹Ă‘ 'ITCCZ *CSg; PTTGC is committed to consolidate its sustainability directives into innovation management in order to create more value for business, society and the environment. 4=NCK1I ;R ";K_31O_#J=A;X3A1L" AL;<K_"<Q3W L K4 L=4=NEL=#K. L=3AK/ ==; G"4=NCK1I W8Q_GD ";G4 R- L1O_;L P`3 / G2R= N# DK" ; X?JDN_"XA.? G;

Ă„ĂŒžĂ‰ _= TMCTD PTTGC employs a policy of investing more than three percent of its net profit per year in research and development and will expand its cooperation with domestic and international partners. In the next ten years, PTTGC’s target is to yield research results that can produce new products, âÓÔÎÓ âÔ×× Ă’Ă?Ă™Ă?Ă?ĂŒĂ&#x;Ă? ĂŒĂ™ ĂŒĂ™Ă™Ă ĂŒĂ— Ă?Ă?ĂĄĂ?Ùà Ă? ÚÑ  ¤Â—››› Ă˜Ă”Ă—Ă—Ă”ĂšĂ™ ­ĂŒĂ“Ă&#x;— ĂšĂ? ĂŒĂ›Ă›Ă?ĂšĂŁĂ”Ă˜ĂŒĂ&#x;Ă?Ă—ä Ă&#x;Ă?Ă™ Ă›Ă?Ă?ĂŽĂ?Ă™Ă&#x; ÚÑ PTTGC’s total sales revenue. 4=NCK1I ;O3Y<4L<?"1R3. L3 L=AN#K<X?J8K,3L;L A L žÂ? G" dL[=DR12NX/ ?J5 X?J#J <L< AL;= A;;QG K48K32;N/= 1K`"Z3X?J/ L"5=JW1B Y.<Z3=J<JWA?LGO œ› 5 #L 3O` 4=NCK1I /K`"W5 LE;L<W8Q_G#J;O6?"L3AN#K<1O_DL;L=0D= L"D== 6?N/:K-+ ZE; D= L"=L<[. X 4=NCK1I 5 ?J  ¤Â—››› ? L34L1 E=QG[; 3 G< A L= G<?J œ› G"=L<[. =A;#L L= L< G"4=NCK1I

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IN FOCUS OUTSTANDING COMPANIES USING INTELLECTUAL PROPERTY FOR COMMERCIAL BENEFIT <EVKS96W_6 ; ;lT9ES@D LV;9T*= ‰‰TL[ =ERaD-; _-V*@T5V-D PTTGC places importance on the protection of intellectual property, and the use of intellectual property to create value added products as well as enhancing the branding image. The efficient management system of intellectual property has brought PTTGC the IP Championship Awards for invention patent category from the Department of Intellectual Property, Ministry of Commerce. 4=NCK1I ZE AL;DdL K}Z3W=Q_G" G" L= R ; =G"1=K8< DN31L"5 }}L GO 1K`"Z% 1=K8< DN31L"5 }}LW5 3W =Q_G";QG K4W ?Q_G3 2R= N#W8Q_GD= L";S? LW8N_;ZE K4DN3 L X?JD= L":L8?K C- ZE X G" = Y.<;O =J4A3 L=4=NEL=#K. L=1O_;O5=JDN12N:L8 X?JW5 3=S52==; D "6?ZE 4=NCK1I [. =K4=L"AK? ´ ÂŽĂ“ĂŒĂ˜Ă›Ă”ĂšĂ™ĂžĂ“Ă”Ă› âĂŒĂ?Ă?Ăž 5=JW:1DN12N4K/= L=5=J.NC* #L =;1=K8< DN3 1L"5 }}L =J1=A"8L-N%<

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Ă€ĂŒĂŠĂŠĂ†Ă‘ĂŠĂ‚Ă‹Ă‘ 'ITCCZ *CSg; PTTGC is committed in creating and developing the quality of life and protecting the environment through sustainable business practices that create trust for stakeholders by balancing business success with responsibility for society and the environment. 4=NCK1I ;R ";K_3D= L"D== X?J8K,3L R-:L8%OAN/ DN_"XA.? G; W8Q_GDK" ;1O_<K_"<Q3 . A< L=D= L" AL;D;.R?X?J 3 LW%Q_G0QGDdLE=K46S ;OD A3[. WDO<. A< AL;=K46N.%G4/ GDK" ;X?JDN_"XA.? G; S K4 AL;DdLW=^#Z3 L=.dLW3N32R= N#

Ă„ĂŒžĂ‰ _= TMCTD PTTGC has set a target of establishing and implementing Creating Shared Value (CSV) Projects. PTTGC has already undertaken two Corporate Social Responsibility (CSR) projects, namely the development of sustainable bioplastic for agriculture usage and the Huai Ma Haad Project for reforestation and water conservation as CSV projects. Moreover, PTTGC aims to develop guidelines for the selection of future CSR/CSV projects, so that CSR projects can be evaluated and developed to achieve the highest value for society and business. 4=NCK1I ;OW5 LE;L<Z3 L=#K./K`"X?J.dLW3N3Y =" L= L=D= L" R- L= A; K3 “Creating Shared Value ÂĽ Žžà ” Y.<W=N_ ; #L L=/ G <G.Y =" L= AL;=K 4 6N . %G4/ G DK " ; G"4=N CK 1 I “Corporate Social Responsibility ÂĽ Žž½Â” DG"Y =" L= [. X Y =" L= L=8K,3L8?LD/N %OA:L8W8Q_G L=W C/=1O_<K_"<Q3 X?JY =" L=8Q`35 L=K C 3d`L E A<;JEL. ZE W5 3Y =" L= Žžà 3G #L 3O` 4=NCK1I ;OW5 LE;L<Z3 L=8K,3LX3A1L" L= K.W?QG Y =" L= Žž½ÂšŽžà G"4=NCK1I DdLE=K45=JW;N3X?J8K,3LY =" L= Žž½ G"4=NCK1I W8Q_GZE 4==?R R- LDS"DR./ GDK" ;X?J2R= N#

ÀÅžĂ‰Ă‰Ă‚Ă‹Ă„Ă‚Ă? žĂ‹Ă ¿ÒĂ?ÆËÂĂ?Ă? ĂŒĂ?Ă?ĂŒĂ?ÑÒËÆÑÆÂĂ? 'ITC9 T9TD`GRaO$TL9T*:ZE$V+ Showing our social responsibility through business activities and stakeholder participation is an approach for creating mutual benefit between PTTGC, local communities and society as a whole. This policy helps foster the sustainable development of both the company and society, leading to mutual economic and social growth. This corresponds to United Nations Sustainable Development Goals, which include promoting healthy lives and well-being for all and ensuring inclusive and equitable quality education and promoting lifelong learning opportunities for all. L=XD." AL;=K46N.%G4 G"4=NCK1I 6 L3 N# ==;1L"2R= N#X?J L=;OD A3= A; K46S ;OD A3[. WDO< W5 3X3A1L"Z3 L= D= L" R- L= A; K3=JEA L"4=NCK1I %R;%3X?JDK" ; % A<W8N_; AL;DL;L=0Z3 L=X " K3 G"2R= N# A4 S K4 L=D "WD=N; WB=C* N#X?J N# ==;W8QG_ AL;<K"_ <Q3 G"DK" ; X?J;O AL;W/N4Y/ LAE3 L[5. A< K3 GK3#J3dL[5DS L=8K,3LX?J< =J.K4 WB=C* N#/?G.#3DK" ;Y.<=A;ZE X ^"X=" &P_"DG. ? G" K4W5 LE;L< L=8K,3LG< L"<K_"<Q3 G"DE5=J%L%L/N GL1N L= D "WD=N;DR :L8X?J AL;W5 3G<S 1O_.O G"%R;%3X?JDK" ; L=ZE E?K 5=J K3Z3 L=ZE L=BP CL 1O_;O R-:L8G< L"W1 LW1O<;X?J L=ZE YG LD1L" L=BP CLG< L"/ GW3Q_G"X 1R 3 W5 3/ 3


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Creating Biz Value

Investments in long-term competitiveness

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Creating Social Value Investments that address social and environmental objectives

Creating Shared Value (CSV)

Investments in long-term biz competitiveness that also address social and environment objectives

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IN FOCUS ¿ÆÌÍɾÐÑÆÀ ÅÒ¿ J[;D $GT*$TE>GV7@GTL7V$-WIBT@ Our advantages in terms of natural resources and its position at the center of different types of industry have ÐÙÌÍ×Ð »¿¿²® ßÚ ÍÐ Ì ­ÔÚÛ×ÌÞßÔÎ ³àÍ ÔÙ ßÓÐ ¬¾°¬¹ ÝÐÒÔÚÙ »Ú×ä×ÌÎßÔÎ ¬ÎÔÏ »·¬ ÍÔÚÛ×ÌÞßÔÎ ÔÞ ÌÙ ÔØÛÚÝßÌÙß bioplastic product, because it is a degradable bioplastic and can be processed easily and therefore can be used for various purposes. PTTGC cooperated with the Royal Project Foundation and the Thailand Research ±àÙÏ ßÚ ÛÝÚáÔÏÐ »·¬ ÍÔÚÛ×ÌÞßÔÎ ÑÚÝ àÞÐ ÌÞ Û×ÌÙßÔÙÒ ÍÌÒÞ ÌÙÏ ÒÝÐÐÙÓÚàÞÐ ÞÓÐÐß ÔÙ Û×ÌÙßÔÙÒ ÑÔÐ×ÏÞ ÌÙÏ ÒÝÐÐÙ ÓÚàÞÐÞ ¿ÓÐ »·¬ ÔÞ ÐÙáÔÝÚÙØÐÙßÌ××ä ÑÝÔÐÙÏ×ä ÍÔÚÛ×ÌÞßÔÎ »¿¿²® ÔÙáÐÙßÐÏ âÓÔÎÓ ÎÌÙ ÏÐÎÚØÛÚÞÐ âÔßÓÔÙ six months to one year, whilst conventional plastic products require more than 100 - 400 years. 4=NCK1I ;R ";K_3Z3 L=W5 3BS3< ?L" L=6?N/8?LD/N %OA:L8 E=QG ­ÔÚÛ×ÌÞßÔÎ ³àÍ Z3:S;N:L GLW&O<3 Y.<GLBK< AL;[. W5=O<4 . L31=K8<L =2==;%L/NX?JBK <:L8 G" L=W5 3BS3< ?L"GR/DLE ==;E?L<5=JW:1 Y.<6?N/:K-+ 8?LD/N %OA:L8 DdL K} QG 8?LD/N %OA:L85=JW:1Y8?OX? /N XG&N. »Ú×ä×ÌÎßÔÎ ¬ÎÔÏ¥ »·¬ &P_"W5 38?LD/N %OA:L81O_< G<D?L<[. X?J;O R-D;4K/N1O_DL;L=0 P`3=S5[. .O #P"DL;L=03dL[5Z% 5=JY<%3 [. E?L E?L< . A< AL;;R ";K_3Z3 L=Z% 3AK/ ==;W8Q_G G5=JY<%3 K4DK" ;X?J%R;%3 4=NCK1I = A;;QG K4;S?3N2NY =" L=E?A"X?JDdL3K "L3 G"1R3D3K4D3R3 L=AN#K< Y.<D3K4D3R38?LD/N %OA:L8 »·¬ W8Q_G3dL;LZ% W5^30R"W8LJ%dLX?J8?LD/N Y="W=QG3DdLE=K4Z% Z3X5?"5?S X?JY="W=QG3 Y.<4==#R:K-+ W8Q_G.SX?=K CL DN_"XA.? G; 8?LD/N %OA:L81O_4=NCK1I N. 3 P`33O` DL;L=0< G<D?L<[. /K`"X/ ¡ W.QG30P" 5 Z3 -J1O_6?N/:K-+ 8?LD/N 1K_A[5Z% WA?L A L 5

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IN FOCUS ÀÉžË Ă”žĂ‘Ă‚Ă? Ă‘žĂ‹ĂˆĂ? Ă?Ă?ĂŒĂ‡Ă‚Ă€Ă‘¡ Ă†Ă‹Ă‹ĂŒĂ?ÉÒĂ? a'E*$TE8S*;lhTLROT6 Ă†Ă‹Ă‹ĂŒĂ?ÉÒĂ? To improve public health issues, alleviate shortages of clean drinking water and reduce conflicts between communities and local businesses over water usage, PTTGC has supplied ÞÛĂ?ĂŽĂ”ĂŒĂ— Ă’Ă?ĂŒĂ?Ă? ¡Ă”Ă™Ă?ĂŒĂ? ¡Ăšâ ÂŻĂ?ÙÞÔĂ&#x;ä Ú×äĂ?Ă&#x;Ă“äĂ—Ă?Ă™Ă? “¡¡¯°Â” products. PTTGC is the only company in the country able to Ă›Ă?ĂšĂ?Ă ĂŽĂ? Ă&#x;ÓÔÞ Ă˜ĂŒĂ&#x;Ă?Ă?Ă”ĂŒĂ—Â™ žĂ”ÙÎĂ? Â?›œž— ¿¿²Ž Ă“ĂŒĂž Ă›Ă?ÚåÔĂ?Ă?Ă? Ă˜ĂšĂ?Ă? Ă&#x;Ă“ĂŒĂ™  ¢ Ă&#x;ÚÙÞ ÚÑ Ă›Ă—ĂŒĂžĂ&#x;ÔÎ Ă‘ĂšĂ? Ă&#x;Ă“Ă? Ă›Ă?ĂšĂ?Ă ĂŽĂ&#x;ÔÚÙ ÚÑ ÂĄÂ ÂœÂ— 2,000-liter water tanks for communities facing water shortage problems in various regions of the country. W8Q_G5=K45=R"5=JW.^3. L3DR :L8 G"5=J%L%3 4==W1L5 }EL L= L.X ?33d`L.Q_;1O_DJGL. X?J?. AL; K.X< " L=Z% 3d`L =JEA L"%R;%3X?J8Q`31O_.dLW3N32R= N# 4=NCK1I ZE L=D3K4D3R3 W;^.8?LD/N Y8?OWG1N?O3 AL;E3LX3 3/d_LW%N"WD 3 E=QG1O_W=O< A L ¡¡¯° “¡Ă”Ă™Ă?ĂŒĂ? ¡Ăšâ ÂŻĂ?ÙÞÔĂ&#x;ä Ú×äĂ?Ă&#x;Ă“äĂ—Ă?Ă™Ă?” W =.8NWBC1O_4=NCK1I DL;L=06?N/[. W8O<"=L<W.O<AZ35=JW1B Y.</K`"X/ 5 Â?  ¥ #30P"5 ##R4K3 4=NCK1I D3K4D3R3W;^.8?LD/N 5=N;L-;L A L  ¢ /K3 DdLE=K43dL[56?N/W5 30K"4==#R3d`L 3L. Â?—››› ?N/= #dL3A3 ÂĄÂ Âœ Z4 ZE K4%R;%31O_;O5 }EL. L3 L= L.X ?33d`L/L;:S;N:L / L"] G"5=JW1B

COMMUNITY SATISFACTION +6%": "1D C &'+% 1 <% ´Ă™ Â?›œ Â— Ă&#x;Ă“Ă? ĂžĂŒĂ&#x;Ă”ĂžĂ‘ĂŒĂŽĂ&#x;ÔÚÙ Ă—Ă?ĂĄĂ?Ă— ÚÑ ĂŽĂšĂ˜Ă˜Ă Ă™Ă”Ă&#x;Ă”Ă?Ăž ĂŒĂ™Ă? ÞÚÎÔĂ?Ă&#x;ä âĂŒĂž ĂŒĂ&#x; £¥™›Â? Ă›Ă?Ă?ĂŽĂ?Ă™Ă&#x;— âÓÔÎÓ ÔÞ ÓÔÒÓĂ?Ă? Ă&#x;Ă“ĂŒĂ™ ÔÙ Â?›œÂ&#x;™ The reason for this positive trend is attributed to a continuous increase in PTTGC’s activities and innovations ÑÚÎà ÞÔÙÒ ÚÙ ĂŽĂ?Ă?ĂŒĂ&#x;ÔÙÒ ĂĄĂŒĂ—Ă Ă? ĂŒĂ™Ă? Ă?Ă?Ă™Ă?Ă‘Ă”Ă&#x;Ăž Ă‘ĂšĂ? ĂŽĂšĂ˜Ă˜Ă Ă™Ă”Ă&#x;ä ĂŒĂ™Ă? ÞÚÎÔĂ?Ă&#x;ä™ ´Ă™ Â?Â›ÂœÂĄÂ— ¿¿²Ž ÔÞ Ă›Ă—ĂŒĂ™Ă™Ă”Ă™Ă’ Ă&#x;Ăš ÔÙåĂ?ĂžĂ&#x; Ă˜ĂšĂ?Ă? in social activities, including activities for education, support for professional development and greater public benefit in local communities. Z35 Â?  £ 84A L%R;%3X?JDK" ; ;O AL;8P"8GZ#= G<?J £¥™›Â? &P_";L A L 5 Â?  ¢ W3Q_G"#L 4=NCK1I W8N_; N# ==;1O_ GZE W N. R- LX?J5=JY<%3 X %R;%3X?JDK" ; GK3W5 36?#L L=1O_4=NCK1I DL;L=08K,3LX?JD= L"3AK/ ==;W8Q_GDK" ; P`3G< L"/ GW3Q_G" Y.<Z35 Â?  ¤ 4=N CK 1 I <K " AL"X63Z3 L=?"1R 3 Z3 N # ==;1L"DK " ;W8N_ ; P` 3 Z3 N # ==;Z3W=Q_ G " G" L=BP CL L=D " WD=N ; GL%O8%R;%3 X?J L=D= L"DL2L=-5=JY<%3 Z38Q`31O_W8N_;W/N;

82.30%

85.14%

86.02%

2013

2014

2015

63



Sustainable Supply Chain


Sustainable Supply Chain /Ĕ+ C Ĕ < Ĕ6 9I&5I &;

Key Figures

5 key suppliers were assessed on environmental,

social and corporate governance performance in 2015.  S LDM K} 1O_[. =K4 L=/=A#5=JW;N3. L3DNÄŽ"XA.? G; DK" ; X?J L= M K4.SX?G" = Z35 Â?  £

239 new suppliers passed screening criteria on environmental, labor practice, human rights and impact on society.

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264 suppliers joined the Knowledge

Management for Suppliers Project in 2015

Â?ÂĄÂ&#x; S L [. W L= A;Y =" L= L=#K. L= AL;=S ZE X S L Z35 Â?  £

9 suppliers have applied for Green Industry certification at Level two or above from the Ministry of Industry.

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Sales 400,128 million Baht in 2015 <G. L<Z35 Â?  £ W1 L K4 Â&#x;››—œÂ?ÂŁ ? L34L1

Reduction in operating costs by more than 21.3 million Baht from activities focusing on strengthening customer relations.

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67


68 CUSTOMER RELATIONSHIP MANAGEMENT

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Ă€ĂŒĂŠĂŠĂ†Ă‘ĂŠĂ‚Ă‹Ă‘ 'ITCCZ *CSg; PTTGC aims to sustain excellence in continuously delivering customer satisfaction by building confidence in products quality and services. 4=NCK1I ;R "=K CL AL;W5 3W?NBZ3 L=D ";G4 AL;8P"8GZ# G"?S LG< L"/ GW3Q_G" Y.< L=D= L" AL;W%Q_G;K_3Z3 R-:L8DN3 LX?J4=N L=

Ă„ĂŒžĂ‰ _= TMCTD PTTGC’s targets to maintain good customer satisfaction levels, in order to consistantly and sustainably ÚÛĂ?Ă?ĂŒĂ&#x;Ă?Ăž Ă”Ă&#x;Ăž Ă?à ÞÔÙĂ?Þޙ ÂŹĂ?Ă?Ă”Ă&#x;Ă”ĂšĂ™ĂŒĂ—Ă—ä— Ă?ä Â?Â›ÂœÂŁÂ— ¿¿²Ž âÔ×× Ă?Ă?ĂĄĂ?×ÚÛ ĂŒ ĂžäĂžĂ&#x;Ă?Ă˜ĂŒĂ&#x;ÔÎ ĂŽĂ ĂžĂ&#x;ĂšĂ˜Ă?Ă? Ă?ĂŒĂ&#x;ĂŒĂ?ĂŒĂžĂ? system, including customer satisfaction, customer dissatisfaction and customer engagement results. This system will allow group companies to access all customer database, which can be used for further analysis in order to continually develop sustainability customer satisfaction and relation plans. 4=NC1K I ;OW5 LE;L<Z3 L==K CL=J.K4 AL;8P"8GZ# G"?S L/L;1O4_ =NC1K I dLE3. X?J=K CL AL;DK;8K32 G3K .O 4K ?S L W8Q_G L=1dL2R= N#G< L"/ GW3Q_G"X?J<K_"<Q3 3G #L 3K`3 4=NCK1I #J.dLW3N3 L=8K,3L*L3 G;S??S L /?G.#3 G;S? 6? L=DdL=A# AL;8P"8GZ# AL;[; 8P"8GZ#X?J AL;6S 8K3 G"?S L ZE W5 3*L3 G;S?1O_1R 4=NCK1Z3 ?R ;4=NCK1I DL;L=0W L0P"*L3 G;S??S L[. :L<Z35 Â? ¥Âœ W8Q_G3dL[5ANW =LJE X?JAL"X638K,3L AL;8P"8GZ# X?J AL;DK;8K32 1O_.O K4?S LG< L"/ GW3Q_G"

ÀÅžĂ‰Ă‰Ă‚Ă‹Ă„Ă‚Ă? žĂ‹Ă ¿ÒĂ?ÆËÂĂ?Ă? ĂŒĂ?Ă?ĂŒĂ?ÑÒËÆÑÆÂĂ? 'ITC9 T9TD`GRaO$TL9T*:ZE$V+ PTTGC delivers value to our customers, so as to create customer satisfaction, which is our core mission. PTTGC endeavors to develop a more effective customer relationship management through aligning our business operation with United Nations Sustainable Development Goals, both in sustainable production and consumption. Risk miligation in supplier risk management also taken into consideration for efficient energy ultilization and product distribution. L=D ";G4 R- LW8Q_GD= L" AL;8P"8GZ#X ?S LW5 38K32 N#E?K 1O_4=NCK1I ;R ";K_38K,3L ?<R12 L=4=NEL=?S L DK;8K32 ZE ;O5=JDN12N:L8 Y.< L=.dLW3N3 L=DG. ? G" K4W5 LE;L< L=8K,3L1O_<K_"<Q3 G"G" =DE5=J%L%L/NZ3W=Q_G" L=6?N/X?J L=4=NY: 1O<_ "K_ <Q3 =A;[50P" L=?. AL;WDO<_ "Z3 L=4=NEL= AL;WDO<_ " G" S L Z3W=QG_ " G" L=D ";G4DN3 L X?J L=Z% 8?K""L3G< L";O5=JDN12N:L8


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CUSTOMER SATISFACTION RATINGS '4 5 +6%": "1D 1 )= ĕ6 PTTGC has conducted customer satisfaction, customer dissatisfaction and customer engagement surveys in ßÓÐ ÑÚ××ÚâÔÙÒ ÌÞÛÐÎßÞ¥ »ÝÚÏàÎß ¼àÌ×Ôßä ¾ÐÝáÔÎÐ ¼àÌ×Ôßä »ÝÚÎÐÞÞ ¼àÌ×Ôßä ÁÌ×àÐ ÌÙÏ »ÝÔÎÐ ®ÚÝÛÚÝÌßÐ ´ØÌÒÐ ÌÙÏ ·ÚäÌ×ßä ´Ù »¿¿²® Þ ÎàÞßÚØÐÝ ÞÌßÔÞÑÌÎßÔÚÙ ÞÎÚÝÐ âÌÞ ÓÔÒÓÐÝ ßÓÌÙ ßÓÐ ÔÙÏàÞßÝä ÌáÐÝÌÒÐ âÓÔÎÓ Ì×ÞÚ ØÐß the 2015's target. In addition, PTTGC just started conducting customer dissatisfaction and customer engagement surveys in 2014. 4=NCK1I .dLW3N3 L=DdL=A# AL;8P"8GZ#?S L AL;[; 8P"8GZ# X?J AL;6S 8K3 G"?S L Z3;R;;G". L3 »ÝÚÏàÎß ¼àÌ×Ôßä ¾ÐÝáÔÎÐ ¼àÌ×Ôßä »ÝÚÎÐÞÞ ¼àÌ×Ôßä ÁÌ×àÐ ÌÙÏ »ÝÔÎÐ ®ÚÝÛÚÝÌßÐ ´ØÌÒÐ ÌÙÏ ·ÚäÌ×ßä Y.<4=NCK1I ;O=J.K4 AL;8P"8GZ# G"?S L 1O_ DS " A L L W$?O_ < G"4=N CK 1 GQ_ 3 ] Z3GR / DLE ==;W.O < A K 3 JX33 [. W 5 L E;L<1O_ A L"[A Z 35 £ Dd L E=K 4 L=DdL=A# AL;[; 8P"8GZ# G"?S L 4=NCK1I [. W=N_;1dL L=DdL=A#/K`"X/ 5 ¢ W5 3/ 3;L

85.7

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IN FOCUS SALES AND LOGISTICS WORKSHOP $TE=ER-ZC_-V*=1V<S7V$TEb;6 T;$TEIT*`>;$TE%TD`GR$TE%;L * ¿¿²Ž ĂšĂ?Ă’ĂŒĂ™Ă”ĂĽĂ?Ă? ĂŒ žĂŒĂ—Ă?Ăž ĂŒĂ™Ă? ¡ĂšĂ’ÔÞĂ&#x;ÔÎÞ Ă‚ĂšĂ?ÖÞÓÚÛ ÔÙ ĂšĂ?Ă?Ă?Ă? Ă&#x;Ăš ĂžĂ&#x;Ă?Ă?ÙÒĂ&#x;Ă“Ă?Ă™ relationship and cooperation between suppliers and the Phenol Business Unit. The workshop was intended to develop, trade strategies and product delivery guidelines so as to achieve mutual benefits through the reduction of operating costs. The results in 2015 illustrated PTTGC's ability to Ă?Ă?Ă?Ă ĂŽĂ? ÚÛĂ?Ă?ĂŒĂ&#x;ÔÙÒ ÎÚÞĂ&#x;Ăž Ă?ä ¥››—››› Ă€ž¯Â— ĂšĂ? ĂŒĂ?Úà Ă&#x; Â?œ™ž Ă˜Ă”Ă—Ă—Ă”ĂšĂ™ ­ĂŒĂ“Ă&#x;™ 4=NCK1I ;O L=#K. L=5=J%R;W%N"5)N4K/N L=Z3. L3 L=AL"X63 L= L<X?J L= 3D " “žĂŒĂ—Ă?Ăž ‘ ¡ĂšĂ’ÔÞĂ&#x;ÔÎÞ Ă‚ĂšĂ?ÖÞÓÚ۔ W8Q_G =J%K4 AL;DK;8K32 X?JW5 3 L== A;;QG K3=JEA L" S L1O_;ODL<DK;8K32 1O_.OX?J ?R ;2R= N#6?N/:K-+ 9 3G? “ÓĂ?ÙÚה Y.< L=5=J%R; W%N " 5)N 4K /N L=3O` ;O AK / 0R 5 =JD" Z 3 L= d L E3. ?<R 1 2 Z 3 L= L X?JX3A1L"Z3 L= 3D " 6?N / :K - + = A ; K 4 S N . 1L" L= L W8Q_ G ZE W N . 5=JY<%3 = A ; K 3 Z3 L=?./ 3 1R 3 Z3 L=.d L W3N 3 "L3 Y.<6? L=.d L W3N 3 "L35 Â?  £ 4=N CK 1 I DL;L=0?./ 3 1R 3 L=.dLW3N3"L3[. 0P" ¥››—››› .G??L= DE=K*GW;=N L E=QG5=J;L- Â?œ™ž ? L34L1

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SUPPLY CHAIN MANAGEMENT

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Ă€ĂŒĂŠĂŠĂ†Ă‘ĂŠĂ‚Ă‹Ă‘ 'ITCCZ *CSg; PTTGC aims to improve supply chain management and build customer confidence to become the number one business partner recognized and trusted by both domestical and international clients in the chemicals industry. 4=NC1K I ;R" 8K,3L R-:L8Z3 L=4=NEL=E A"Y& G5R 1L3X?JD= L" AL;W%QG_ ;K3_ ZE 4K ?S L W8QG_ P3` DS L=W5 3 S L GK3.K4E3P"_ 1OW_ 5 31O<_ G;=K4X?J[. =4K L=[A AL"Z##L ?S LZ3GR/DLE ==;W ;O:K + 1"K` Z3X?J/ L"5=JW1B

Ă„ĂŒžĂ‰ _= TMCTD PTTGC aims to gain supplier's acceptance with the Supplier's Code of Conduct and conduct their businesses in accordance with the Code by 2020. It also sets a goal to collaborate with supplier in reducing environmental impact throughout the supply chain. 4=NCK1I ;OW5 LE;L<ZE S L 1R =L< G"4=NCK1I <G;=K4X?J.dLW3N3 L=/L;#==<L4==-Z3 L=5)N4K/N/ G S L G"4=NCK1I (Supplier's Code of Conduct) Z35 Â? ¥Âž =A;1K`";OW5 LE;L<Z3 L=.dLW3N3Y =" L== A; K4 S LW8Q_G?.6? =J14 / GDN_"XA.? G;/?G.E A"Y& GR51L3

ÀÅžĂ‰Ă‰Ă‚Ă‹Ă„Ă‚Ă? žĂ‹Ă ¿ÒĂ?ÆËÂĂ?Ă? ĂŒĂ?Ă?ĂŒĂ?ÑÒËÆÑÆÂĂ? 'ITC9 T9TD`GRaO$TL9T*:ZE$V+ Efficient supply chain management will reduce both risks and costs within the supply chain, which have direct impacts on stakeholders, including suppliers, customers and the surrounding communities. PTTGC, therefore, is committed to manage its supply chain in accordance with the United Nations Sustainable Development Goals to promote sustainable industrialization, foster innovation and build resilient infrastructure via a sustainable supply chain management system. This includes sustainable production through the implementation of PTTGC’s Supplier's Code of Conduct, in order to achieve the goals of efficient supply chain management, the reduction of greenhouse gas emissions and the production of more environmentally friendly products. L=4=NEL=E A"Y& GR51L3G< L";O5=JDN12N:L8 #J% A<?. AL;WDO_<"X?J/ 31R3Z3DL<Y& GR51L3&P_";O6? =J14Y.</="/ G 6S ;OD A3[. WDO< GK3[. X S L ?S L %R;%3Y.<=G4 4=NCK1I #P";R "EAK" L=4=NEL=E A"Y& GR51L3ZE DG. ? G" K4W5 LE;L< L=8K,3LG< L"<K_"<Q3 G"DE5=J%L%L/NZ3W=Q_G" G" L=D= L"GR/DLE ==; 3AK/ ==; X?JY ="D= L"8Q`3*L36 L3=J44 #K. L=E A"Y& GR51L31O_<K_"<Q3 =A;0P" L=6?N/1O_<K_"<Q36 L3 L=5)N4K/N/L;#==<L4==-Z3 L=5)N4K/N/ G S L G"4=NCK1I W8Q_GZE DdLW=^#/L;W5 LE;L< L=4=NEL=E A"Y& GR51L3G< L";O5=JDN12N:L8 L=?. L=5? G< L&W=QG3 =J# X?J L=6?N/ DN3 L1O_W5 3;N/=/ GDN_"XA.? G;;L P`3

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Supplier Risk Management Supply chain risk assessment Spend analysis in the supply chain Identification of key suppliers

Supplier Registration Evaluation of supplier qualifications in four aspects Supplier registration

Annual Performance Evaluation Annual performance evaluation Development of suppliers’ capability together with related parties


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IN FOCUS KNOWLEDGE MANAGEMENT PROJECT a'E*$TE$TE+S6$TE'ITCE[ In 2015, PTTGC organized a knowledge management event for its partners known as “Better Reliability is Our Duty” aiming at building knowledge and sharing experiences regarding maintenance work as well as potential risks and consequences for utility customers. Z35 £ 4=NCK1I ;OY =" L= L=#K. L= AL;=S ZE X S L :L<Z/ "L3 ú­ÐßßÐÝ ½Ð×ÔÌÍÔ×Ôßä ÔÞ ºàÝ ¯àßäû W8Q_GD= L" AL;=S X?JX%= 5=JD4 L=- . L34dL=R"=K CL =A;0P" AL;WDO_<"X?J6? =J141O_GL#W N. P`3 K4?S LDL2L=-S5 L=

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ÉÆàÀÖÀÉ ¾ÐÐÂÐÐÊÂËÑ· ÉÀ¾ 6' '4A%8 +5 5 ' 9+8 )8 $5 Ę Waste Management Characteristics of Environmentally Friendly Products and Services Reduce the use of resources and use recycle materials

LCA

Resources

Use energy efficiently and reduce waste generation Minimize or zero environmental impact from production process Longer life span products and design a reusable product

Utilization

Collect and reuse or recycle the packaging Low environmental impact logistic system Return of products for proper waste disposal

Distribution

Manufacturing


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Operational Responsibility


Operational Responsibility +6%'5 8 1 Ĕ1 6' N6A 8 6

Key Figures

Reduce accumulation of GHG emission by 3.5% (O.27 million tons of carbon dioxide equivalent)

Reduce energy consumption by 1.71 million GJ Water Recycled 904,842 m3

Zero waste to landfill Carbon Footprint Reduction Labels for 44 Product grades

6 Tier 1 process safety events Zero Loss of Primary Containment


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TARGET AND PERFORMANCE .'< A Đ6/%6&B)4 ) 6' N6A 8 6 PLAN `>;*T;MGS$

TARGET FOR 2015 _= TMCTD ¯²²µ

PERFORMANCE IN 2015 >G$TE6lT_;V;*T; ¯²²µ

TARGET FOR 2016 _= TMCTD ¯²²¶

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79


80 OPERATIONAL ECO-EFFICIENCY

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WATER CONSUMPTION '8%6 6'D Ä• 6NJ 2015 Target

39.07

38.87 38.61 35.57

34.71

Water Consumption (million cubic meters)

2012

2013

2014

2015

2015

IN FOCUS Ă”žĂ‘Ă‚Ă? ĂƒĂŒĂŒĂ‘Ă?Ă?ÆËÑ Ă?Ă?ĂŒĂ‡Ă‚Ă€Ă‘ a'E*$TEIO_7OE AZ7@EVh;9 ´Ă™ Â?›œ Â— ¿¿²Ž Ă?ĂĄĂŒĂ—Ă ĂŒĂ&#x;Ă?Ă? Ă&#x;Ă“Ă? âĂŒĂ&#x;Ă?Ă? ÑÚÚĂ&#x;Ă›Ă?ÔÙĂ&#x; ÚÑ ¥¢ º×Ă?ÑÔÙÞ ĂŒĂ™Ă? Ú×äĂ˜Ă?Ă?Ăž Ă›Ă?ĂšĂ?Ă ĂŽĂ&#x; Ă’Ă?ĂŒĂ?Ă?ޙ Currently, the organization water footprint project is in the process of expanding to all products, which is Ă›Ă?ÚÕĂ?ĂŽĂ&#x;Ă?Ă? Ă&#x;Ăš ĂŽĂšĂ˜Ă›Ă—Ă?Ă&#x;ÔÚÙ Ă?ä Â?Â›ÂœÂŁÂ™ 5 Â?  £ 4=N CK 1 I [. 5 =JW;N 3 AGW/G= 9R / 8=N` 3 1 G" ?R ; 6?N / :K - + 1K` " E;.Z3 ?R ; 6?N / :K - + Y GW?9 3 D X ?J ?R ; 2R = N # 6?N/:K-+ Y8?NW;G= &P_";O#dL3A31K`"DN`3 ¥¢ W =.6?N/:K-+ X?JG<S Z3=JEA L" L= <L<6? L=.dLW3N3"L3AGW/G= 9R/8=N`31 DdLE=K4G" =[5DS 1R ?R ;6?N/:K-+ G"4=NCK1I ZE X? AWD=^# :L<Z35 Â? ¥Âœ

PTTGC recognizes the importance of efficient water consumption. For this reason, the company conducts research and evaluation of water consumption throughout a product’s life cycle in order to identify process operation to decrease water consumption in each production process.

67 product grades

2015

78 product grades

2016

90 product grades

2017

98 product grades

2018


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RESOURCES AND WASTE MANAGEMENT

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WASTE TO LANDFILL '8%6 1 A.9&!ę )

814

611 2015 Target

134 Total waste to landfill (tons)

2012

2013

2014

0

0

2015

2015

Since the beginning of 2015, the total amount of waste to landfill has been reduced to zero. The Zero Waste ßÚ ·ÌÙÏÑÔ×× ÛÝÚÕÐÎß ÓÌÏ ÍÐÐÙ ÚÙÒÚÔÙÒ ÞÔÙÎÐ ÌÙÏ ÓÌÞ ÐÑÑÐÎßÔáÐ×ä ÎÝÐÌßÐÏ ÐÙáÔÝÚÙØÐÙßÌ× ÌâÌÝÐÙÐÞÞ ÑÚÝ Ì×× employees. 5=N;L- L=7 " ?4 G"WDO<?.?"#3;O LW1 L K4BS3< /K`"X/ / 35 £ W3Q_G"#L L=.dLW3N3Y =" L= ÅÐÝÚ ÂÌÞßÐ ßÚ ·ÌÙÏÑÔ×× G< L"/ GW3Q_G"/K`"X/ 5 G< L";O5=JDN12N:L8= A; K4 L=D= L"#N/DdL3P L=.SX?=K CLDN_"XA.? G; G"G" =

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84 AIR QUALITY CONTROL

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AIR QUALITY CONTROL 6' + <% < $6"16 6,

2015 Target

3,613

3,214

1,484

3,248 1,599 1,077

3,613

3,606

3,281

1,595 968

1,543 913

1,615 1,088

2014

2015

2015

Air Emission

2012

2013

Nitrogen Oxide (tons)

Sulfur Dioxide (tons)

Volatile Organic Compounds (tons)


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IN FOCUS ÍÒÏÄ ľРÏÂÁÒÀÑÆÌË ÍÏÌÇÂÀÑ ¥ÂÏÒ ÒËÆѦ a'E*$TE ÍÒÏÄ ľРÏÂÁÒÀÑÆÌË ¥ÂÏÒ ÒËÆѦ PTTGC established the Ethylene Recovery Unit (ERU) to remove Ethylene from the Gas Purge Cycle for reuse in the production processes, before being sent to the Waste Heat Boiler. The target is to have an Ethylene ½ÐÎÚáÐÝä ½ÌßÐ ÚÑ ÙÚß ×ÐÞÞ ßÓÌÙ ¡ ÖÔ×ÚÒÝÌØÞ ÛÐÝ ÓÚàÝ ±Ú××ÚâÔÙÒ ÔØÛ×ÐØÐÙßÌßÔÚÙ ßÓÐ ÛÝÚÕÐÎß âÌÞ ÌÍ×Ð ßÚ ÍÝÔÙÒ °ßÓä×ÐÙÐ ÍÌÎÖ ÔÙßÚ ßÓÐ ÛÝÚÏàÎßÔÚÙ ÛÝÚÎÐÞÞ Ìß ÌÙ ÌáÐÝÌÒÐ ÝÌßÐ ÚÑ ¡ ÖÔ×ÚÒÝÌØÞ ÛÐÝ ÓÚàÝ ¿ÓÔÞ ÝÐÞà×ßÐÏ in a reduction in the amount of gas being sent to the Waste Heat Boiler and decreased the air quality issues that might affect the surrounding communities. 4=N CK 1 I .d L W3N 3 L=/N . /K` " E3 A <3d L WG1N ?O 3 ?K 4 ;LZ% Z E; °½À W8Q_ G .P " DL=WG1N ?O 3 1O_ 5 3G<S Z 3 L &=J4L<1N` " #L =J44 L&E;R3WAO<3 ®äÎ×Ð ²ÌÞ »àÝÒÐ ?K4[5Z% ZE; Z3 =J4A3 L=6?N/ G31O_#JD "[5W6L1O_ ÂÌÞßÐ ³ÐÌß ­ÚÔ×ÐÝ Y.</K`"W5 LE;L< ZE ;OGK/=L G" L&WG1N?O31O_0S 3dL ?K4;LZ% ZE; °ßÓä×ÐÙÐ ½ÐÎÚáÐÝä ½ÌßÐ [; 3 G< A L ¡ NY? =K;/ G%K_AY;" &P_"W;Q_G1dL L= /N./K`"E3 A<3dLWG1N?O3 ?K4;LZ% ZE; DL;L=03dL L&WG1N?O3 ?K4 Q3W LDS =J4A3 L=6?N/[. W$?O_< ¡ NY? =K;/ G%K_AY;" Y.<% A<?.5=N;L- L&WG1N?O31O_#J/ G"D "[5W6L dL#K.X?J?.6? =J14. L3 R-:L8GL LB1O_GL#D "6?/ G%R;%3

ERU Production Process

Cycle Gas Purge

Ethylene

Waste Heat Boiler

ERU more than 20 MB investment

more than 600 tons/year Benefit = 11.3 MB/year Ethylene reduction

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Ă„ĂŒžĂ‰ _= TMCTD The company has set the goal to reduce greenhouse gas emissions by ten percent by 2022, from 2012 base year, based on business as usual scenarios. PTTGC further aims to reduce energy index under business as usual by ten percent in 2020, from 2015 base year. 4=NCK1I ;OW5 LE;L<Z3 L=?. L=5? G< L&W=QG3 =J# ?"= G<?J œ› #L L=.dLW3N32R= N#/L;5 /NZ35 Â? ¥ Y.<W1O<4#L 5 *L3 Â?   X?J;OW5 LE;L<Z3 L=?..K%3O L=Z% 8?K""L3?"= G<?J œ› #L L=.dLW3N32R= N#/L;5 /NZ3 5 Â? ¥Âž Y.<W1O<4#L 5 *L3 Â?  £

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GHG EMISSIONS 6' )Ĕ1& Ė6 A';1 '4

5.9

5.8

2015 Target 6.0

5.8

5.8

2015 Target

3 1.9

2012

1.8

2013

Greenhouse Gas Emission Scope 1

(million tons of carbon dioxide equivalent)

1.7

2014 Greenhouse Gas Emission Scope 2

(million tons of carbon dioxide equivalent)

1.6 2015

4

4

2013

2014

5

5

2015

2015

1.8

2015

2012

Greenhouse Gas Emission Report Scope 3

(Number of Activities)


Ă?òðùÞÌÍÞĂ&#x;ÌÊÌùÜ Ă?âíÏïù ¯­Ž² Ă?Ă‘Ă‘ Ă„ĂŠĂŹĂ&#x;ÞÊ Ă€üâêÌà ÞÊ Ă?òĂ&#x;ÊÌà ÀÏêíÞÍÜ ÉÌêÌùâå

IN FOCUS RAW CO2 Ă‘Ă?žà ÆËÄ Ă?Ă?ĂŒĂ‡Ă‚Ă€Ă‘ a'E*$TE.YhO%TD$ T.'TE <O;c6OO$c.6 ÂĽĂ?žĂ” Ă€ĂŒ2ÂŚ In order to reduce greenhouse gas emissions to the environment, PTTGC organized an agreement to sell raw CO2 Ă&#x;Ăš ²Ă?ÙÔà Þ ´Ă™Ă&#x;Ă?Ă’Ă?ĂŒĂ&#x;Ă?Ă? žĂšĂ—Ă Ă&#x;ÔÚÙ ŽÚ™— ¡Ă&#x;Ă?™ ¿ÓĂ? Ûà Ă?ĂŽĂ“ĂŒĂžĂ?Ă? ÂŽÂş2 was used as a raw material for Sodium Bicarbonate. With this agreement, the company set its goal to reduce carbon dioxide emissions by 120 tons Ă›Ă?Ă? Ă?ĂŒä ĂšĂ? ĂŒĂ›Ă›Ă?ĂšĂŁĂ”Ă˜ĂŒĂ&#x;Ă?Ă—ä ž Â—››› Ă&#x;ÚÙÞ Ă›Ă?Ă? äĂ?ĂŒĂ?™ ¿ÓĂ? ĂŒĂ’Ă?Ă?Ă?Ă˜Ă?Ă™Ă&#x; ÔÞ Ă?ĂŁĂ›Ă?ĂŽĂ&#x;Ă?Ă? Ă&#x;Ăš Ă?Ă? ĂŽĂšĂ˜Ă›Ă—Ă?Ă&#x;Ă?Ă? ÔÙ Ă&#x;Ă“Ă? äĂ?ĂŒĂ? Â?Â›ÂœÂĄÂ— resulting in an approximate income of more than 20 million Baht per year. W8Q_ G ?. L=5? G < L & L= 4 G3[.GG [&. G G DS DN_ " XA.? G ; 4=N CK 1 I [. W #=#L&Q` G L< L & L= 4 G3[.GG [&. = A ; K 4 4=NCK1 #OW3O<D GN31NW =W/^. Y&?S%K_3 #dL K. DdLE=K43dL[56?N/W5 3Y&W.O<;[4 L= 4GW3/ “žĂšĂ?Ă”Ă Ă˜ ­Ă”ĂŽĂŒĂ?Ă?ĂšĂ™ĂŒĂ&#x;Ă?” Y.</K`"W5 LE;L< ?. L=5? G< L& L= 4G3[.GG [&. GG DS DN_"XA.? G;AK3?J ÂœÂ?› /K3 E=QG5=J;L- ž Â—››› /K3/ G5 &P_" L.A LDL;L=0 L< 6?N/:K-+ [. Z35 Â?  ¤ Y.<#JD= L"=L<[. ZE X 4=NCK1 A L Â?› ? L34L1/ G5

Target Reduce carbon dioxide by tons per year

35,000

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86 Energy Saving Projects in 2015 ¾³ a'E*$TE=ERMDS6@GS**T;9Wg6U_;V;*T;b;= ¯²²¾

556 Million Baht Saved in Energy Saving Project ²²³ G T;<T99WgG6c6 +T$$TE6U_;V;a'E*$TE=ERMDS6@GS**T;

Ž´Ž Million Gigajoules in Energy Reduction Ž´Ž G T;$V$R+ăG%O*@GS**T;9WgG6G*c6

89


90

IN FOCUS 2015 INTERNAL ENERGY REDUCTION PROJECT a'E*$TEG6$TEb- @GS**T;b;O*' $E b;= ¯²²¾ The company received the Prime Minister's Industrial Excellence Award in Energy Management in 2015 for the High Selectivity Catalyst (HSC) Project for changing the type of catalyst from a Medium Selective Catalyst to a High Selective Catalyst in the EO Reactor. This change increased the efficiency of the catalysts and reduced the consumption of raw materials Ă?ä Â&#x;œ—¥¤Â› Ă&#x;ÚÙÞ Ă›Ă?Ă? äĂ?ĂŒĂ?— ĂžĂ&#x;Ă?ĂŒĂ˜ ĂŽĂšĂ™ĂžĂ Ă˜Ă›Ă&#x;ÔÚÙ Ă?ä žž—Â?ÂŁÂŁ Ă&#x;ÚÙÞ Ă›Ă?Ă? äĂ?ĂŒĂ?— and 40 million Baht in annual expenses on eliminating carbon dioxide from production processes or a decrease in the total expenses by 215 million Baht per year. 4=NCK1I [. =K4=L"AK?#L L=5=J A.GR/DLE ==;.OW. 35=JW:1 L=#K. L=8?K""L3Z35 Â?  £ #L Y =" L= ³ÔÒÓ žĂ?Ă—Ă?ĂŽĂ&#x;ÔåÔĂ&#x;ä ÂŽĂŒĂ&#x;ĂŒĂ—äĂžĂ&#x; “³žŽÂ” E=QG L=W5?O_<3%3N. G"/KAW= "5)N N=N<L#L ¸Ă?Ă?Ă”Ă Ă˜ žĂ?Ă—Ă?ĂŽĂ&#x;ÔåĂ? ÂŽĂŒĂ&#x;ĂŒĂ—äĂžĂ&#x; W5 3 ³ÔÒÓ žĂ?Ă—Ă?ĂŽĂ&#x;ÔåĂ? ÂŽĂŒĂ&#x;ĂŒĂ—äĂžĂ&#x; Z3W =Q_G"5)N =- “°º ½Ă?ĂŒĂŽĂ&#x;ĂšĂ?” &P_" L=W8N_;5=JDN12N:L8 G"/KAW= "5)N N=N<L.K" ? LA#J% A<?. L=Z% AK/0R.N4 Â&#x;œ—¥¤Â› /K3/ G5 L=Z% [G3d`L žž—Â?ÂŁÂŁ /K3/ G5 X?J LZ% # L< G"8?K""L3DdLE=K4 dL#K. L& L= 4G3[.GG [&. 1O_W N.#L 5)N N=N<L Â&#x;› ? L34L1 / G5 E=QG5=JE<K. LZ% # L<=A; Â?Âœ ? L34L1/ G5


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OCCUPATIONAL HEALTH AND SAFETY

OT-WIO;TCSD`GR'ITC=GO6BSD

Ă€ĂŒĂŠĂŠĂ†Ă‘ĂŠĂ‚Ă‹Ă‘ 'ITCCZ *CSg; Safety is the main component of sustainable development within PTTGC and impacts upon the trustworthiness of the company’s operations. PTTGC therefore strives to instill safety into all processes Ă‘ĂšĂ? Ă˜ĂšĂ?Ă? Ă&#x;Ă“ĂŒĂ™ ÂœÂŁÂ—Â›Â›Â› Ă?Ă˜Ă›Ă—ĂšäĂ?Ă?Ăž ĂŒĂ™Ă? ÎÚÙĂ&#x;Ă?ĂŒĂŽĂ&#x;ĂšĂ?Ăž âĂ”Ă&#x;ÓÔÙ Ă&#x;Ă“Ă? ĂšĂ?Ă’ĂŒĂ™Ă”ĂĽĂŒĂ&#x;ÔÚٙ ¿ÓÔÞ Ă“ĂŒĂž Ă—Ă?Ă? Ă&#x;Ăš Ă&#x;Ă“Ă? ĂŽĂšĂ˜Ă›ĂŒĂ™äÚĂž recognition in the petrochemicals industry as an Incident-free Organization. AL;5?G.:K<3K4W5 3G" 5=J G4E?K G" L=8K,3LDS AL;<K_"<Q3 G"G" = X?JD "6?/ G AL;W%Q_G;K_3Z3 L= .dLW3N32R= N# .K"3K`3 4=NCK1I #P";R ";K_3Z3 L=D= L" AL;5?G.:K<ZE W N. P`3Z31R =J4A3 L=5)N4K/N"L3 G"1K`"83K "L3 X?J6S =K4WE;L A L ÂœÂŁÂ—Â›Â›Â› 3 W8Q_G LADS L=W5 36S 3dLZ32R= N#W ;O:K-+ 1O_5=LB#L WE/R L=- 1O_= L<X="X?J L=4L.W#^4 #L L=1dL"L3 “Incident Free Organization)

Ă„ĂŒžĂ‰ _= TMCTD ¿¿²Ž Ă“ĂŒĂž ĂžĂ?Ă&#x; Ă&#x;Ă“Ă? ÑÚ××ÚâÔÙÒ Ă“Ă?ĂŒĂ—Ă&#x;Ă“ ĂŒĂ™Ă? ĂžĂŒĂ‘Ă?Ă&#x;ä Ă’ĂšĂŒĂ—ĂžÂĽ Ϫ ½Ă?Ă?Ă ĂŽĂ? Ă&#x;Ă“Ă? ¡ĂšĂžĂ&#x; ÂżĂ”Ă˜Ă? ´Ă™Ă•Ă Ă?ä ÂąĂ?Ă?ĂœĂ Ă?Ă™ĂŽä ½ĂŒĂ&#x;Ă? “¡¿´¹½Â” ÚÑ Ă?Ă˜Ă›Ă—ĂšäĂ?Ă?Ăž ĂŒĂ™Ă? ÎÚÙĂ&#x;Ă?ĂŒĂŽĂ&#x;ĂšĂ?Ăž Ă&#x;Ăš ĂĽĂ?Ă?Ăš Ă?ä Â?›Â?› 2. Reduce Tier 1 Process Safety Events to zero by 2020 4=NCK1I /K`"W5 LE;L<. L3DR G3L;K<X?J AL;5?G.:K< .K"3O` Ϫ ?. ¡ĂšĂžĂ&#x; ÂżĂ”Ă˜Ă? ´Ă™Ă•Ă Ă?ä ÂąĂ?Ă?ĂœĂ Ă?Ă™ĂŽä ½ĂŒĂ&#x;Ă? “¡¿´¹½Â” G"83K "L3X?J6S =K4WE;LZE W5 3BS3< Z35 Â? ¥Âž Â?™ ?.WE/R L=- 1O_D "6?/ G AL;5?G.:K<Z3 =J4A3 L=6?N/=J.K41O_ Âœ “Tier 1 Process Safety Event” ZE W5 3BS3< Z35 Â? ¥Âž

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91


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PRODUCTION SAFETY PERFORMANCE ) 6' N6A 8 6 Ä•6 +6% )1 $5&D 6' )8

LOPC = Loss of Primary Containment

Performance

Performance 2015 = Zero Incidents

TARGET 2018 less than or equal to 2017

less than or equal to

Target 2015: less than or equal to 5 Incidents/year

2016

less than or equal to

IN FOCUS PROCESS SAFETY MANAGEMENT TASKFORCE LEADER PTTGC was appointed as the PTT Group Process Safety ¸ĂŒĂ™ĂŒĂ’Ă?Ă˜Ă?Ă™Ă&#x; ÂżĂŒĂžĂ–Ă‘ĂšĂ?ĂŽĂ? ¡Ă?ĂŒĂ?Ă?Ă? ÔÙ ĂšĂ?Ă?Ă?Ă? Ă&#x;Ăš Ă?ÙÎÚà Ă?ĂŒĂ’Ă? ĂŒĂ™Ă? improve process safety performance within PTT Group. The overall objective was to reduce the number of Tier 1 Process Safety Events to zero and to share safety knowledge and information within PTT Group. In 2015, the number of Tier 1 Process Safety Events was at six, which was 54 percent lower than in 2014. This was due to the continuation of operations and measurements under the required PSM Effectiveness KPIs. 4=NCK1I [. =K4 L=X/ "/K`"ZE W5 36S 3dLZ3 L=.dLW3N3"L3. L3 AL;5?G.:K< G" =J4A3 L=6?N/ ?R ; 5/1™ “¿¿ ²Ă?Úà Û ÂťĂ?ÚÎĂ?ÞÞ žĂŒĂ‘Ă?Ă&#x;ä ¸ĂŒĂ™ĂŒĂ’Ă?Ă˜Ă?Ă™Ă&#x; ÂżĂŒĂžĂ–Ă‘ĂšĂ?ĂŽĂ? ¡Ă?ĂŒĂ?Ă?Ă?” W8Q_G6?K .K3X?J8K,3L5=JDN12N:L8 L=.dLW3N3"L3. L3 AL;5?G.:K< Z3 =J4A3 L=6?N/ ?R ; 5/1™ Y.</K`"W5 LE;L<DdLE=K4?.WE/R L=- 1O_D "6?/ G AL;5?G.:K<Z3 =J4A3 L=6?N/=J.K4 1O_ Âœ “¿ÔĂ?Ă? Âœ ÂťĂ?ÚÎĂ?ÞÞ žĂŒĂ‘Ă?Ă&#x;ä °åĂ?Ă™Ă&#x;” ZE W5 3BS3< /?G.#3.dLW3N3 L=X4 "5 3 G;S? LADL=. L3 AL;5?G.:K<:L<Z3 ?R ; 5/1™ &P_"Z35 Â?  £ 84A L ¿ÔĂ?Ă? Âœ ÂťĂ?ÚÎĂ?ÞÞ žĂŒĂ‘Ă?Ă&#x;ä °åĂ?Ă™Ă&#x; ;O LW1 L K4 ÂĄ WE/R L=- &P_"?.?"#L 5 Â?  ¢ = G<?J  Â&#x; W3Q_G"#L ;O =J4A3 L=.dLW3N3 L=X?J/=A#5=JW;N3/L; ž¸ °Ă‘Ă‘Ă?ĂŽĂ&#x;ÔåĂ?Ă™Ă?ÞÞ œ´Ăž 1O_ dLE3.[A G< L"/ GW3Q_G"

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Safe working behaviors through the 4,800-hour safety training course

Care for your own safety by thinking before working: Instill a safety culture in the organization

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Stop If Unsafe: the ability to stop a process when an unsafe situation is expected

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HEALTH PERFORMANCE INDEX .< $6" 1 " 5 6

Health Performance Index

Target for 2015

Performance in 2015

BMI

more than 10 % improvement

Accomplished the goal in all areas. The members of the project could reduce BMI by more than 10%

Health Checkup Involvement

95%

Unaccomplished

Health Promotion

7 times per year

Accomplished the goal in all areas, with a total of 25 activities

Medical Emergency Drill

6 times per year

Accomplished the goal in all areas; rehearsed for the second level for a total of 15 times

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IN FOCUS FIT @ WORK Ă?Ă?ĂŒĂ‡Ă‚Ă€Ă‘ a'E*$TE Ăƒit @ Work The Fit @ Work Project was an example of projects that focused on good health of employees. The project was initiated in 2014 with the purpose of encouraging employees to take care of their health as âĂ?Ă—Ă— ĂŒĂž Ă?Ă?ÔÙÒ ĂŒĂ?Ă—Ă? Ă&#x;Ăš ÒÔåĂ? ĂŒĂ™Ă? Ă?ĂŁĂŽĂ“ĂŒĂ™Ă’Ă? ÖÙÚâĂ—Ă?Ă?Ă’Ă? ĂŒĂ?Úà Ă&#x; Ă“Ă?ĂŒĂ—Ă&#x;Ă“ ÔÞÞà Ă?Ăž Ă&#x;Ăš ĂšĂ&#x;Ă“Ă?Ă?Ăž Ăś ĂŒĂ—ĂžĂš ÖÙÚâĂ™ ĂŒĂž ú³Ă?ĂŒĂ—Ă&#x;Ă“ Sharing.â€? In order to do so, PTTGC arranged a Healthy Corner for employees to organize health related ĂŒĂŽĂ&#x;ÔåÔĂ&#x;Ă”Ă?ޙ ¿ÓĂ?ĂžĂ? ĂŒĂŽĂ&#x;ÔåÔĂ&#x;Ă”Ă?Ăž Ă?Ă?ĂŽĂ?ÔåĂ?Ă? ÛÚÞÔĂ&#x;ÔåĂ? ĂŒĂ&#x;Ă&#x;Ă?Ă™Ă&#x;ÔÚÙ Ă‘Ă?ĂšĂ˜ Ă?Ă˜Ă›Ă—ĂšäĂ?Ă?ޗ ĂŒĂ&#x;Ă&#x;Ă?ĂŒĂŽĂ&#x;ÔÙÒ ĂŒ Ă&#x;ĂšĂ&#x;ĂŒĂ— ÚÑ ¢¥Â&#x; Ă›ĂŒĂ?Ă&#x;Ă”ĂŽĂ”Ă›ĂŒĂ™Ă&#x;Ăž ÚÑ Ă&#x;ÓÔÞ Ă™Ă Ă˜Ă?Ă?Ă?— Â?¢¤ Ă›ĂŒĂ?Ă&#x;ÔÎÔÛĂ?Ă™Ă&#x;Ăž ĂšĂ? ž¢ Ă›Ă?Ă?ĂŽĂ?Ă™Ă&#x; Ă“ĂŒĂĄĂ? ÞÓÚâĂ?Ă? ĂŒ ĂžĂ”Ă’Ă™Ă”Ă‘Ă”ĂŽĂŒĂ™Ă&#x; Ă?Ă?Ă?Ă ĂŽĂ&#x;ÔÚÙ ÔÙ Ă&#x;Ă“Ă?Ă”Ă? ­¸´ ÞÎÚĂ?Ă?ޙ In addition, the company also provided knowledge and information about health to communities ÔÙ Ă&#x;Ă“Ă? ĂŒĂ?Ă?ĂŒĂž âĂ“Ă?Ă?Ă? ¿¿²Ž ÚÛĂ?Ă?ĂŒĂ&#x;Ă?ޗ Þà ÎÓ ĂŒĂž ĂŒĂ&#x; ÂŽĂ“ĂŒĂ– ¡à Ă– Ă„ĂŒÂ— ÂťĂŒäÚÚÙ ­Ă?ĂŒĂŽĂ“ ĂŒĂ™Ă? œÓÚ œÚÖ ĂŽĂšĂ˜Ă˜Ă Ă™Ă”Ă&#x;Ă”Ă?ޙ These communities received the same encouragement to support healthy living among family members. HEALTH PROMOTION HEALTH SHARING

HEALTHY FOOD

FIT @ WORK PROJECT HEALTHY CORNER

HEALTH CHECK UP HEALTH ANALYSIS

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99



Employee Readiness


Employee Readiness

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Key Figures

Benefits received from the support in the PI-ChEPs training program was equivalent to 55 million Baht in 2015 6?5=JY<%3 1O_[. =K4#L L=D3K4D3R3Y =" L=G4=; ´Â˜ÂŽĂ“°ž Z35 Â?  £ W1O<4W1 L K4   ? L34L1

Cost-savings in recruiting external candidates more than 19 million Baht

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Internal promotion of 2015 was equivalent to 69% of vacant positions

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Budget for employee development: 123 million Baht in 2015

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HUMAN CAPITAL DEVELOPMENT

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IN FOCUS PI-ChEPs Ă?Ă?ĂŒĂ„Ă?žĂŠ a'E*$TE Ă?ƪÀhEPs The PI-ChEPs program was developed to enhance learning processes, skills and knowledge about chemical engineering for employees working in production (operators), in order to help improve production efficiency. The PI-ChEPs program was launched in 2007 and still on-going. In 2015, PTTGC was able to save 55 million Baht on production cost from six projects of this program implemented in process since 2012. Y =" L= ´Â˜ÂŽĂ“°Ăž W5 3Y =" L=1O_4=NCK1I .dLW3N3 L=W8Q_G8K,3L =J4A3 L=W=O<3=S 1K CJ X?J AL;=S 1L". L3ANB ==;W ;O G"83K "L36S 5)N4K/N L=Z3E3 A< L=6?N/ “ºÛĂ?Ă?ĂŒĂ&#x;ĂšĂ?” W8Q_GZE DL;L=0 N. 3Y =" L=1O_% A<Z3 L=5=K45=R"5=JDN12N:L8 L=6?N/ Y.<Y =" L= ´Â˜ÂŽĂ“°Ăž W=N_;.dLW3N3 L=/K`"X/ 5 Â?  Â› X?J;OX63 L=.dLW3N3 L=/ GW3Q_G" Z35 Â?  £ 4=NCK1I DL;L=0 5=JE<K. LZ% # L<Z3 =J4A3 L=6?N/ [.   ? L34L1 #L ÂĄ Y =" L= 1O_[. #L L=3dL AL;=S 1O_[. #L L=W=O<3=S Z3Y =" L=3O` ;L5=J<R / /K`"X/ 5 Â?  Â

6

Investments over million Baht per year

6

projects for production efficiency improvement

Saving production cost of

55 million Baht per year


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64%

of free positions

Employees filling higher positions (medium and higher level executives)

305 senior level employees participating in the training

Saving expenses of more than 19 million Baht

TRAINING 6'!Ä? 1 '% Training hours for employees from each working section

9%

66%

1% 1% 6% 1% 2% 3% 6% 1% 1% 1%

Group Performance Center Corporate Affairs and Corporate Secretary CEO EO-Based Performance Business Unit External Affairs Finance & Accounting Green Chemicals Business Unit Organizational Effectiveness International Business Operations Science and Innovation Marketing, Commercial and Supply Others

107


108 TALENT ATTRACTION AND RETENTION

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Ă€ĂŒĂŠĂŠĂ†Ă‘ĂŠĂ‚Ă‹Ă‘ 'ITCCZ *CSg; The attraction and retention of quality employees is one of PTTGC’s objectives as we strive to become one of the top choices for personnel with potential and ability. L=D==ELX?J=K CL83K "L31O;_ O R :L8W5 3E3P"_ Z3 AL;;R" E;L< G"4=NC1K I 3G #L 3O ` 4=NC1K I / G" L=W5 31L"W?QG Z3GK3.K4/ 3] DdLE=K46S; BO K <:L8X?J AL;DL;L=0

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ÀÅžĂ‰Ă‰Ă‚Ă‹Ă„Ă‚Ă? žĂ‹Ă ¿ÒĂ?ÆËÂĂ?Ă? ĂŒĂ?Ă?ĂŒĂ?ÑÒËÆÑÆÂĂ? 'ITC9 T9TD`GRaO$TL9T*:ZE$V+ The rapid growth and development of the economy, accessibility to quality education, globalization of businesses and changing attitudes towards work are among the key issues and challenges which PTTGC faces in the attraction and retention of quality employees. PTTGC is aware of these issues and continues to develop recruitment processes and working to retain quality employees. This represents an opportunity for PTTGC in the creation of a positive image for personnel recruitment and mechanisms for increasing employee loyalty. These issues are consistent with the United Nations Sustainable Development Goals in various aspects, such as promoting sustainable economic growth in all areas, productive employment and decent work place. L=8K,3LX?JW/N4Y/G< L"=A.W=^A G"WB=C* N# L=W L0P" L=BP CL1O_;O R-:L8 Y? L:NAK/3 1L"2R= N# X?J1KB3 /N L=1dL"L31O_W5?O_<3[5 3K4W5 35 }ELX?J AL;1 L1L<1O_DdL K} G"4=NCK1I Z3 L=D==ELX?J=K CL83K "L31O_;O R-:L8 4=NCK1I /=JE3K 0P"5 }EL.K" ? LA X?J;O L=8K,3L =J4A3 L=Z3 L=D==ELX?J=K CL83K "L31O_;O R-:L8G< L" / GW3Q_G" Z3GO X" E3P_"3K4W5 3YG LD G"4=NCK1I L=D= L":L8?K C- 1O_.O L= K.D==4R ?L = X?J L=AL"X3A1L"W8Q_GZE 83K "L3#"=K :K .O/ GG" = 5=JW.^3WE? L3O`DG. ? G" K4W5 LE;L< L=8K,3LG< L"<K_"<Q3 G"DE5=J%L%L/N Z3E?L<] X" ;R; W% 3 L=D "WD=N; L=W/N4Y/ G"WB=C* N#1O_<K_"<Q3 =G4 ?R;1R :L D A3 =A;1K`" L=# L""L31O_;O5=JDN12N:L8 X?JD:LAJ L=1dL"L31O_WE;LJD; W5 3/ 3


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145


146

LRQA Assurance Statement Relating to PTT Global Chemical Public Company Limited’s Sustainability Report for the calendar year 2015 This Assurance Statement has been prepared for PTT Global Chemical Public Company Limited in accordance with our contract but is intended for the readers of this Report.

Terms of Engagement Lloyd’s Register Quality Assurance Ltd. (LRQA) was commissioned by PTT Global Chemical Public Company Limited (PTTGC) to provide independent assurance on its Sustainability Report for the calendar year 2015 (“the Report”) against the assurance criteria below to a limited level of assurance and at the materiality of the professional judgement of the verifier using LRQA’s verification approach. LRQA’s verification approach is based on current best practice and uses the principles of AA1000AS (2008) - Inclusivity, Materiality, Responsiveness and Reliability of performance data and processes defined in ISAE3000. Our assurance engagement covered PTTGC’s operations and activities in Thailand, including its subsidiary companies where PTTGC holds more than 50% of share capital, and specifically the following requirements: x Confirming that the Report is in accordance with: GRI G4’s Reporting Guidelines and Core option GRI G4’s Oil and Gas Sector Supplement x Reviewing the integrity of PTTGC’s whistleblowing mechanisms for internal and external parties (G4-58) x Evaluating the reliability of data and information for selected specific standard disclosures:

energy consumption within the organization (G4-EN3), energy intensity (G4-EN5), total water withdrawal by source as water consumption (G4-EN8), percentage and total water recycled & reused (G4-EN10), SOx, NOx and other significant air emission (G4-EN21), total water discharge by quality and destination (G4-EN22), total weight of waste by type and disposal method (G4-EN23), and type of injury and rates of injury as LTIFR, occupational diseases, lost days, and absenteeism and total number of work-related fatalities (G4-LA6) Our assurance engagement excluded the data and information of PTTGC’s operations and activities outside of Thailand. LRQA’s responsibility is only to PTTGC. LRQA disclaims any liability or responsibility to others as explained in the end footnote. PTTGC’s responsibility is for collecting, aggregating, analysing and presenting all the data and information within the Report and for maintaining effective internal controls over the systems from which the Report is derived. Ultimately, the Report has been approved by, and remains the responsibility of PTTGC.

LRQA’s Opinion Based on LRQA’s approach nothing has come to our attention that would cause us to believe that PTTGC has not: x Met the requirements above x Disclosed reliable performance data and information for the selected specific standard disclosures x Deployed robust and confidential whistleblowing mechanisms. However, there is a shortfall in the Report describing fully these mechanisms. x Covered all the issues that are important to the stakeholders and readers of this Report. The opinion expressed is formed on the basis of a limited level of assurance and at the materiality of the professional judgement of the Verifier. Note: The extent of evidence-gathering for a limited assurance engagement is less than for a reasonable assurance engagement. Limited assurance engagements focus on aggregated data rather than physically checking source data at sites.

LRQA’s Approach LRQA’s assurance engagements are carried out in accordance with LRQA’s Report Verification procedure. The following tasks though were undertaken as part of the evidence gathering process for this assurance engagement: x Assessing PTTGC’s approach to stakeholder engagement to confirm that issues raised by stakeholders were captured correctly. We did this by reviewing documents and associated records. x Reviewing PTTGC’s process for identifying and determining material issues to confirm that the right issues were included in their Report and updated overtime. We did this by benchmarking reports written by PTTGC and its peers to ensure that sector specific issues were included for comparability. We also tested the filters used in determining material issues to evaluate whether PTTGC makes informed business decisions that may create opportunities which contribute towards sustainable development.

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ÐòðñÞæëÞßæéæñö Ïâíìïñ ¯­®² ÍÑÑ ÄéìßÞé ÀåâêæàÞé Íòßéæà ÀìêíÞëö Éæêæñâá

x

Auditing PTTGC’s data management systems to confirm that there were no significant errors, omissions or mis-statements in the Report. We did this by reviewing the effectiveness of data handling process, and systems, including those for internal verification. We also spoke with key people in various facilities responsible for compiling the data and drafting the Report.

x

Visiting the Olefins business unit of PTTGC2&3, Aromatic business unit of PTTGC5, Refinery business unit of PTTGC6&8 and Polymer business unit of PTTGC12 in Rayong to sample evidence for the selected specific standard disclosures to confirm its reliability. Note: LRQA did not verify the data back to its original sources, nor did it assess the accuracy and completeness of the data reported by individual locations.

Observations Further observations and findings, made during the assurance engagement, are: x Stakeholder Inclusivity: We are not aware of any key stakeholder groups that have been excluded from PTTGC’s stakeholder engagement process. However, we believe that future reports should further explain how PTTGC engages with its other under-represented social groups; for example - with independent contractors. x Materiality: We are not aware of any material aspects concerning PTTGC’s sustainability performance that have been excluded from the Report. PTTGC has processes for identifying and determining their material aspects; the evaluation process considers factors such as stakeholder concerns, business risk, legal compliance and issues addressed by peers. However, future reports should provide context as to how PTTGC’s sustainable development policies and practises are impacted by fluctuations in the oil price. x Responsiveness: PTTGC and its subsidiaries have processes for responding to various stakeholder groups. We believe that these communication processes are effective in explaining PTTGC’s aim in contributing towards sustainable development as we found nothing that would cause us to contradict this conclusion. x Reliability: PTTGC’s uses a well-defined, centralized, system to collect and calculate its data and information associated with the selected specific standard disclosures listed above. PTTGC should maintain its own internal data verification process to ensure the quality of its reported data and information.

LRQA’s competence and independence LRQA ensures the selection of appropriately qualified individuals based on their qualifications, training and experience. The outcome of all verification and certification assessments is then internally reviewed by senior management to ensure that the approach applied is rigorous and transparent. This verification, together with the ISO 14064-1 assurance engagement, and TGO TVETS (Thailand Voluntary Emission Trading Scheme of Thailand Greenhouse Gas Management Organization (Public Organization)) assurance engagement are the only work undertaken by LRQA for PTTGC and as such does not compromise our independence or impartiality. Signed

Dated: 14 February 2016

Opart Charuratana LRQA Lead Verifier On behalf of Lloyd’s Register Quality Assurance Ltd. Lloyd’s Register International (Thailand) Limited 14th Floor, Sirinrat Building, 3388/46 Rama IV Road Klongton, Klongtoey, Bangkok 10110 THAILAND LRQA Reference: BGK6030198 Lloyd's Register Group Limited, its affiliates and subsidiaries, including Lloyd’s Register Quality Assurance Limited (LRQA), and their respective officers, employees or agents are, individually and collectively, referred to in this clause as 'Lloyd's Register'. Lloyd's Register assumes no responsibility and shall not be liable to any person for any loss, damage or expense caused by reliance on the information or advice in this document or howsoever provided, unless that person has signed a contract with the relevant Lloyd's Register entity for the provision of this information or advice and in that case any responsibility or liability is exclusively on the terms and conditions set out in that contract. The English version of this Assurance Statement is the only valid version. Lloyd’s Register Group Limited assumes no responsibility for versions translated into other languages. This Assurance Statement is only valid when published with the Report to which it refers. It may only be reproduced in its entirety. Copyright © Lloyd's Register Quality Assurance Limited, 2016. A member of the Lloyd’s Register Group.

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148


แบบสอบถาม รายงานการพัฒนาอยางยั่งยืน 1. ทานคิดอยางไรกับรายงานการพัฒนาอยางยั่งยืน ประจําป 2558 ของบริษัท พีทีที โกลบอล เคมิคอล จํากัด (มหาชน) ฉบับนี้ ความเขาใจในเนื้อหา (สํานวนภาษาที่ ใช) เขาใจไดงาย

ปานกลาง

เขาใจไดยาก

ความนาสนใจของเนื้อหา นาสนใจ

ปานกลาง

ไมนาสนใจ

การจัดหมวดหมูของเนื้อหา เปนหมวดหมู

ปานกลาง

กระจัดกระจาย

2. ทานคิดอยางไรกับการดําเนินงานดานความรับผิดชอบตอสังคมของบริษัท พีทีที โกลบอล เคมิคอล จํากัด (มหาชน) ความเขาใจในเนื้อหา (สํานวนภาษาที่ ใช) ดีมาก ดี

ปานกลาง

ควรปรับปรุง

3. ทานคิดวาเนื้อหาหัวขอไหนนาสนใจมากที่สุด (สามารถเลือกไดมากกวา 1 คําตอบ) 01 นโยบายการบริหารจัดการความยั่งยืน 02 สารจากประธานเจาหนาที่บริหารและกรรมการผูจัดการใหญ 03 รางวัลแหงความสําเร็จ 04 เกี่ยวกับรายงานฉบับนี้ 05 การประเมินประเด็นที่สําคัญ 06 การดําเนินธุรกิจของเรา 07 วิสัยทัศนและพันธกิจ 08 ธุรกิจของเรา 09 การกํากับดูแลกิจการที่ดี 10 การบริหารความเสี่ยงและสภาวะวิกฤติ 11 ผูนําดานการมีความรับผิดชอบตอผลิตภัณฑ 12 ความรับผิดชอบตอผลิตภัณฑ 13 การสรางนวัตกรรมใหมแกผลิตภัณฑ 14 ความรับผิดชอบตอสังคม

แย 15 หวงโซคุณคาที่ยั่งยืน 16 การบริหารลูกคาสัมพันธ 17 การบริหารหวงโซอุปทาน 18 ความรับผิดชอบตอการดําเนินงาน 19 การดําเนินงานที่มีประสิทธิภาพเชิงนิเวศเศรษฐกิจ 20 การเปลี่ยนแปลงสภาพภูมิอากาศ และประสิทธิภาพการใชพลังงาน 21 อาชีวอนามัยและความปลอดภัย 22 ความพรอมของพนักงาน 23 การพัฒนาศักยภาพพนักงาน 24 การสรรหาและรักษาพนักงานที่มีคุณภาพ 25 ประสิทธิผลการดําเนินงาน ป 2558 26 GRI Content Index 27 การรายงานความกาวหนา (COP)

4. กรุณาใหขอเสนอแนะเพื่อการพัฒนาปรับปรุง - ทานมีขอคิดเห็น/เสนอแนะเพิ่มเติมอื่นๆ เกี่ยวกับรายงานฉบับนี้ และการดําเนินงานดานความรับผิดชอบตอสังคมของ บริษัท พีทีที โกลบอล เคมิคอล จํากัด (มหาชน) อยางไรบาง - ขอมูลหรือเนื้อหาอะไรบางที่ทานตองการใหรายงานในรายงานของเรา 5. ในฐานะผูอานรายงานของเรา กรุณาระบุวาทานเปนผูอานจากมุมมองไหน คูธุรกิจ

ลูกคา

ผุถือหุน/นักลงทุน

พนักงานที่ทํางานดานสิ่งแวดลอมขององคกร

นักเรียน/นักศึกษา

สื่อ

หนวยงานราชการ

หนวยงานวิจัย หรือ สถาบันการศึกษา

พนักงานที่ทํางานดานความรับผิดชอบตอสังคมขององคกร

อื่นๆ โปรดระบุ

กรุณากรอกขอมูลดังตอไปนี้ (ตามความประสงค) ชื่อ - นามสกุล ที่อยู

อายุ

E-mail

อาชีพ

ตํ่ากวา 25 ป

26-33 ป

34-41 ป

42-49 ป

50 ปขึ้นไป

ขอคิดเห็นและขอเสนอแนะอื่นๆ ในขางตนจะนําไปใชเพื่อพัฒนาปรับปรุงรายงานการพัฒนาอยางยั่งยืนฉบับตอไป เราจะรักษาขอมูลสวนตัวของทานเปนความลับ และดวยความระมัดระวังเปนอยางสูง โดยจะนําไปใชเพื่อติดตอกลับในกรณี ในกรณีมีคําถามเทานั้น เราจะไมเปดเผยขอมูลของทานตอบุคคลอื่นไมวากรณี ใดๆ


บริ ก ารธุ ร กิ จ ตอบรั บ

ใบอนุ ญ าติ เ ลขที่ ปข. 2/191 ปณ. มาบตาพุ ด ถ า ฝากส ง ภายในประเทศไม ต  อ งผนึ ก ตราไปรษณี ย ากร

กรุณาสง หนวยงานบริหารความยั่งยืนองคกร บริษัท พีทีที โกลบอล เคมิคอล จํากัด (มหาชน) 555/1 ศูนยเอนเนอรยี่คอมเพล็กซ อาคารเอ ชั้น 14-18 ถนนวิภาวดีรังสิต แขวงจตุจักร เขตจตุจักร กรุงเทพฯ 10900

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