The oil and gas industry faces intense public scrutiny and must deal with high expectations when it comes to responsibility for sustainable development of natural resources. It was one of the first to learn that CSR is not just public relations; deeds must match words.
PTT Plc, the largest energy group in Thailand, aims to pursue a sustainability agenda in line with industry peers as well as all stakeholders including communities and the public.
PTT has been ranked on the Dow Jones Sustainability Index since 2012 for its efforts to apply a CSR framework throughout its operation.
“The practice of CSR is something we have been developing constantly over the past years. The organisation must truly understand the role of every stakeholder, then offer the programmes or assistance each one needs. We call it stakeholder engagement,” said Prasert Salinla-umpai, executive vice-president for CSR.
As PTT aims to be a hundred-year organisation, it has to pursue a sustainable approach. Given the changes in the world and the environment, the company’s future at some point probably will not involve oil and gas at all.
“Our executives also consider that natural energy sources may not be sustainable since there is an increase in population, which accelerates oil and gas consumption as well. So, we are always initiating new innovations to address to this concern,” said Mr Prasert.
PTT is in the process of establishing the first science and research university in Thailand, where it envisions producing a new generation of scientists as a key resource for Thailand in the future.
There are two main dimensions for PTT when it comes to community development: compensation communities directly affected by its activities, and building long-term relationships.
“For example, we initiated the Green Belt project at Asia Industrial Estate. From being a dry area, the ecosystem has finally been restored,” said Mr Prasert. “It acts as a lung for the community.
“As well, we explore the demands of communities to appropriately serve their needs such as career advancement. What we are working on is the idea of Creating Shared Values or CSV so that the community can stand on its own.”
One of PTT’s CSV initiatives calls for the supply of byproducts and sharing of expertise to the community. For example, PTT supplies carbon dioxide from its gas separation plant and cooling systems from LNG logistics. As a result, communities can grow cold-climate flowers, once seen as exotic in Thailand, and generate revenue from their sale.
“For the outlook for the next five to 10 years, we envision ourselves leaning in the direction of CSV, especially the aspects of health and safety, innovation and education and community development,” added Mr Prasert.
Shell Company (Thailand), as the local unit of an energy multinational, takes its cue from some of the international social responsibility values that are already widely recognised.
“In terms of CSR, we are trying to develop people. Thais are not really equipped with English education so that is an area where we can contribute to society in terms of investment,” said Bongkod Paebunyong, general manager for communication and corporate affairs.
One of the company’s highest-profile global projects is the Shell Eco Marathon, in which teams from all over the world compete to design and test the most fuel-efficient car. It supplies only one gallon of oil to each team and the car that travels the farthest wins.
“It is all about energy efficiency; however, for Thais, they need to be able to fully communicate with other team members in the competition. So, this is how we integrate English into energy access,” explains Ms Bongkod.
Shell (Thailand) is a downstream operation and most of its oil refining and exploration are done overseas. Therefore, most of its CSR programmes are aligned with its business operation such as social assessment, community development and logistics accountability.
“We’re trying to move away from philanthropy to strategic investment,” added Ms Bongkod.
Being the local arm of a multinational corporation does not place limitations on
CSR based on head-office policy, but in fact offers broader opportunity to absorb know-how from different countries, said Ms Bongkod.
“You can’t just follow the global direction provided but you have to understand your local context and leverage from there,” she said.