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PTTCH: Sustainability Report 2009

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Sustainability Report 2009

Text of PTTCH: Sustainability Report 2009

  • BETTER FUTURE

  • Contents 03

    CEO Message 10 .

    PTT Chemical Business Value Chain 15

    Vision and Sustainability 17

    CSR Policy 21

    Approach to Reporting 25 Corporate Governance and Code of Conduct Corporate Governance and Code of Conduct 29 Economics Balancing Growth and Sustainability 33 Environment Environment

    Greenhouse Gas Management and Energy Conservation

    Products 45 Society

    Safety, Occupational Health, and Security of Employee

    Society and Community Development

    Stakeholder Engagement 57 Summary PTT Chemical in Figures GRI content index

  • .() PTT Chemical is determined to implement our CSR policy in order to lay a strong foundation for a sustainable international presence.

    By balancing economic, social and environmental dimensions will help PTT Chemical to achieve growth and drive our performance to compete in the globalarena.

  • CEO Message

    . () Global Reporting

    InitiativesGuidelines(GRIG3) CGRI

    . ()

    TomakesurethatPTTChemicalscommitmentto

    corporatesocialresponsibility(CSR) is in linewith

    internationallyrecognizedstandards,PTTChemical has therefore defined framework and guide for

    puttingourcommitmentintopracticeandtoensure our CSR is consistently implemented throughout

    the organization. PTT Chemical believes that

    puttinginplaceCSRsystemsandprocessescan

    helpmanageriskandpursuegrowthopportunities

    with increasedconfidence tooperatesustainably

    inalongterm.ThisreportfeaturesreportingofPTT

    Chemicals performance in line with the Global

    Reporting Initiatives (GRI G3) to internationalize

    thecorporatesocialresponsibilityreportandtailor

    thecontents to theexpectationsofstakeholders. In addition, this sustainability report has been

    approvedandcertifiedandreceivedaccreditation

    levelCofintegrityassessmentbyGRI PTT Chemical is determined to implement our

    CSR policy in order to lay a strong foundation for a sustainable international presence. By

    balancing economic, social and environmental

    dimensionswillhelpPTTChemical toachieve growthanddriveourperformancetocompetein

    theglobalarena.

    3

  • .

    . . . .()Roadmap . .

    4

  • Commitment At PTT Chemical, sustainable development means operating responsibly which delivers beyond business growth but also protects and sustains the human and natural resources for our future generation.

    Sustainability at PTT Chemical Therefore, at the central of every activity, CSR is embedded from production to our products and

    services to the way we engage our stakeholders as we contribute to the sustainable development ofoursociety. Harmony PTTChemicalupholdsourcommitmenttobethegoodupstreaminsupportingoursociety,environment

    bypromotingharmonyandamutuallybeneficialcyclebetweenindustryandthesociety. Sustainability Strategies In2009,PTTChemicalhasrestructured itsCSRgovernance in linewithevolvingcircumstancesand

    theriseofsocialexpectations.Assuch,theGroupCSRCommitteehasbeensetuptooverseeCSR

    andinternalcontrolactivitiesunderthedirectsupervisionofthepresident.Thecommitteesmaintasks

    include formulating thePTTChemicalsCSRpolicy, strategiesand roadmap in linewith international

    practicesandPTTGroup.At thesametime,PTTChemicalcontinues tostrengthen its internalCSR

    management to push forward with the embedding of CSR into our management strategies and to

    practiceCSRaspartofbusinessoperations.

    5

  • 25522552

    - --BehaviourBasedSafety

    (BBS)-

    (HappyWorkplace) -

    . CorporateSocial

    Responsibility,Departmentof IndustrialWorks

    (CSR-DIW) TheStockExchange of

    ThailandAward(SETAward)

    2009 Performance This year, PTT Chemical continues to enhance

    our existing CSR initiatives by placing strong

    emphasisonsocialandcommunitydevelopment,

    environment, climate change, and fair operating

    practices. These initiatives have yielded very

    promising results as illustrated in the report. For instance, CSR projects this year include

    education -promotion of education for the youth;

    society - Rayong water management project;

    employee safety - application of the Behavior

    BasedSafety:BBSininternaloperations;health -promotion of happy workplace campaign; and

    community development-promotionofjobcreation. Such commitment resulted in the Companys assorted awardsandcertification:CorporateSocial

    Responsibility, Department of Industrial Works

    (CSR-DIW) certification for their compliance with

    IndustrialWorksDepartmentsstandardsConcerning CorporateSocialResponsibility,TheStockExchange ofThailandAward (SETAward) for topcorporate

    governance report, environmental governance reward, outstanding business operator in safety,

    occupationalhealthandworkenvironmentaward.

    Board of the Year Awards 2008 /09

    SET Awards 2009 Excellent CG Scoring Audit Committee of the Year 2008 /09 Top Five Level

    PTT Chemical attains an externally verified application level of C

    6

  • Mr. Veerasak Kositpaisal President&CEO

    Success via Sustainable Drive PTT Chemical works towards strengthening our

    economic,socialandenvironmentalperformancesto

    layastrongfoundationforagrowinginternational

    presenceandtobecomealeaderinpetrochemical sector.Asweexpandourcompanyintoanewera ofstrengthandstability,PTTChemicalrealisesthat

    ourkeychallengeistopropelouroperationwith

    responsibility to thesocietyandenvironmentand

    puttinginplaceCSRpracticesinlinewithinternationally recognizedstandards.

    Outlook Going forward, PTT Chemical realizes our ongoing and future duty as a leader in petrochemical and

    chemical sectors and a rolemodel inCSR.Through

    good times and bad times, PTT Chemical has

    always putting our maximum efforts to raise our

    standardstolevelwiththeinternationalarena.

    7

  • .()

    BETTER FUTURE

  • PTT Chemical Business Value Chain.

    .

    .

    . . (Eco-efficiency)

    . ()

    ()()

    10

  • Overall Business PTTChemicalisafullyintegratedpetrochemicalandchemicalcompany.Ourproductsarederived

    fromourmainproduct,Olefins,namelyethyleneandpropylenewithotherproducts including EO-basedPerformanceandOleochemicals.TheCompanyalsoprovidesservicestosupportPTT

    Groupsproductioncapacitysuchas,sharedfacility, jettyandstoragetankfarm.TheCompanys distinctivebusinessexpansionplanwillenhance itscompetitivenessaswellaselevateThai petrochemicalindustryintotheinternationalarena.

    PTTChemicaliscommittedtonewinventionsthatprovidebenefitstoallstakeholderswhile

    creatingvaluestothesociety.Indoingso,PTTChemicalwilloperateincompliancewithlaw

    asaminimumrequirement.PTTChemicalworkstoadopteco-efficiencyinordertotake

    ourperformancebeyondlegalcompliance.

    History PTTChemicalPublicCompanyLimited(PTTCH)was

    founded upon a strong foundation of two of the major players in Thailands petrochemical and chemical industry sectors : the National Petrochemical Public Company Limited (NPC) and Thai Olefins Public

    CompanyLimited(TOC).

    11

  • OLEFINS & SHARED FACILITIES

    POLYMERS

    World Class Standard, Efficiency in Operations with Environmental care 3

    AsthenumberoneOlefinsproducerinThailand, andakey industry leader in theAsiaPacific

    region, we have significantly contributed in

    reducingthecountrysdependenceonimports

    byusinglocalresourcesasmainrawmaterials whilst addressing ecological concerns with

    emphasis on quality and high - standards at

    theupstreamcontinuingthroughtoallourthree valuecenters.

    Olefins -Ethylene

    -Propylene

    Utilities

    -Steam

    -Water

    -Electricity

    Jetty & Buffer Tank Farm

    Business Value Center

    Market-Future Driven Commodities

    Wecansuccessfullymeetcustomersdemands

    with our international standard product; for both

    commodities and specialties products while

    reducingnaturalresourceconsumption

    HDPE (High Density Polyethylene) Applications : PlasticBag,HouseholdProduct,Cap&Closure,

    Pipe,Container&Drum,Wire&CableJacketing LLDPE (Linear Low Density Polyethylene) Applications : Film,Coating,Fibers

    LDPE (Low Density Polyethylene) Applications : Shrink Film, Foam & Sheet, Tube, Shoe Sole,

    BeverageCarton,Container

    PS (Polystyrene) Applications : PackagingMaterialse.g.FoamDrinkCup,

    DisposableCutlery,HomeAppliances,

    CD&DVDCases

    12

  • SERVICES & OTHERS

    Professional Service Provider

    We support the companys

    operational development in terms

    of safety, environmental concerns

    and maintenance, as well as in

    providing product storage and

    handlingservices.

    Environment & Safety

    Maintenance & Engineering VCM & PVC (Vinyl Chloride Monomer & Polyvinyl

    Chloride)

    Applications : ConstructionMaterials,

    PlasticContainers,Pipe

    Phenol Applications : OpticalMedia,Construction

    Material,AutoPart,Coating

    Piping&Pipeline

    Transportations

    Logistics

    Value Creation Wehelpthecountrytobecomemore

    selfreliantintermsofpetrochemical product. At the same time, we helpaddvaluetolocaldownstream

    industries.

    Ethylene Glycol Applications : PolyesterTextile&Fiber,

    PETBottle,AutomotiveAntifreeze

    Ethoxylate Applications : CleaningProduct;Sham

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