pttch: sustainability report 2010

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Sustainability Report 2010

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Page 1: PTTCH: Sustainability Report 2010

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Page 2: PTTCH: Sustainability Report 2010

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Page 3: PTTCH: Sustainability Report 2010

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������������ ����������Sustainability of the business can not be achieved by business excellence only; corporate responsibility and environmental

awareness also have a major role. PTT Chemical is therefore willing to do more than it has in the past, for a better society and

environment. PTT Chemical engineers the security and sustainability of the business growth along with the social and environmental

responsibility through improving thinking and actions; changing perspectives; expanding vision and imagination; and offering

more responsibility. We believe what has been said needs in all our employees’ minds, to ensure this footstep is towards a brighter

and more beautiful future.

Page 4: PTTCH: Sustainability Report 2010

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���������������������������PTT Chemical Public Company Limited is committed and devoted to providing a better

quality of life for our entire workforce and society through “Innovation”, which guides us

towards the shared value between the company and society as a whole.

We believe that Innovation is originated through the process of thinking, learning and

implementing, leading to benefit and better new value, starting from employees to

community, society, industry and our country.

Page 5: PTTCH: Sustainability Report 2010
Page 6: PTTCH: Sustainability Report 2010

StatementGRI Application Level Check

GRI hereby states that PTT Chemical Public Company Limited has presented its report “2010Sustainability Report” to GRI’s Report Services which have concluded that the report fulfills therequirements of Application Level A.

GRI Application Levels communicate the extent to which the content of the G3 Guidelines has beenused in the submitted sustainability reporting. The Check confirms that the required set and number ofdisclosures for that Application Level have been addressed in the reporting and that the GRIContent Index demonstrates a valid representation of the required disclosures, as described in the GRIG3 Guidelines.

Application Levels do not provide an opinion on the sustainability performance of the reporter nor thequality of the information in the report.

23 March 2011, Amsterdam

Nelmara ArbexDeputy Chief ExecutiveGlobal Reporting Initiative

The Global Reporting Initiative (GRI) is a network based organization that has pioneered the development of the world’s most widely usedsustainability reporting framework and is committed to its continuous improvement and application worldwide. The GRI Guidelines set outthe principles and indicators that organizations can use to measure and report their economic, environmental, and social performance.www.globalreporting.org

Disclaimer: Where the relevant sustainability reporting includes external links, including to audio visual material, this statement onlyconcerns material submitted to GRI at the time of the Check on 11 March 2011. GRI explicitly excludes the statement being applied to anylater changes to such material.

Page 7: PTTCH: Sustainability Report 2010

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Report Information

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Business Value Chain

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PTT Chem Group Key Financial Figures

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PTT Chemical's Performance in Figures

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Approach to Reporting

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Page 8: PTTCH: Sustainability Report 2010

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�2��3We believe that our business - providing chemicals - is necessary for human and the quality of life in societies. We welcome you to read this report which adopted Global Reporting Initiative Guidelines (GRI), which is the international standard for sustainability reporting. This report is also served as the United Nations Global Compact 2010 Communication on Progress (COP). Moreover, you can visit our website on PTTChemgroup.com to learn how we operate responsibly to help meet the need for supporting our society, environment by promoting harmony and a mutually beneficial cycle between “industry” and “the society.”

Page 9: PTTCH: Sustainability Report 2010

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Our Commitments to ExternalSustainability Initiatives

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“By balancing economic, social and environmental dimensions

will help PTT Chemical to achieve growth and drive our

performance to compete in the international arena.”

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Page 10: PTTCH: Sustainability Report 2010
Page 11: PTTCH: Sustainability Report 2010

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�������s75�����:2���27=�����������(�55���At PTT Chem Group, our aim is to be the chemical industry

leader in bettering quality of life via human, technology, and

innovation potential as well as being a sustainable business

role model.

We believe with high morale and responsibility in our conduct

not only can raise quality of life and develop higher living

standards to stakeholders, but contribute to our nation as a

whole from today and beyond.

More importantly, by creating such values enhances PTT

Chem Group to reach healthier business potential by

improving financial performance from lowered costs which

is quite essential for qualitative growth. This approval reflects

from stakeholders in leading to sustainability.

This Sustainability Report was prepared in accordance with

Global Reporting Initiative, GRI-G3 Guidelines to demonstrate

comprehensive performance on sustainable development.

It is our pleasure that the report was improved and qualified

as ‘Application level C’ last year to ‘Application level A’ this

year from GRI.

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Page 12: PTTCH: Sustainability Report 2010

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!��������75�����:�2���PTT Chem Group’s Corporate Social Responsibility (CSR)

roadmap emphasized on integrating variety of business

operations, corporate vision, fine-tuning business means

according to environment, risk factors and global leader

benchmarking, in addition to aligning stakeholders expectations.

All key considerations are also our key success factors in

moving forward as a leader in sustainability development.

In 2010, PTT Chem Group’s CSR Committee accompanied

with Value Centers achieved its mission with formulating PTT

Chem Group’s CSR Strategy and Master Plan for 2011-2015

as a framework for all business units. It contains guidelines to

efficient natural resource utilization, responding to stringent

regulatory requirements, bettering Thai quality of life and

collaboration with industry groups for community benefits,

which are all vial to PTT Chem Group’s business conduct.

We continue to improve the way we embed the principles of

Corporate Social Responsibility into the way we manage our

business. Thus, our business units are now required to adopt PTT

Chemical CSR Framework, which is aligned with international

standards including ISO 26000. To put PTT Chemical CSR

Framework into practice, businesses must develop short and

longterm action plans, including challenging targets through

incorporating into their business plans.

Findings in studies for Master plan revealed challenges with

significant effects to the group’s growth target. In 2010,

PTT Chem Group countered these challenges by means of

utilizing natural resource efficiently, such as lowering water

and energy consumption in production through equipment

improvement and installation down to improving production

efficiency. PTT Chem Group collaborated with industry

members and communities in establishing and being a part

of “Community Partnerships Initiative” to help coordinate

and manage all concern issues related to social and

community well-being with PTT Chem Group’s CEO as the

group’s president.

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Page 13: PTTCH: Sustainability Report 2010

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Mr. Veerasak Kositpaisal

President & CEO

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����� ��”

The “Map-ta-phut” situation has subsided after the court

decided to have only the expansion of Ethylene glycol

production project of TOC Glycol Co., Ltd. - a part of PTT Chem

Group - to halt operation according to the Thai constitution.

We are awaiting the royal Thai government for direction to

move forward. Nevertheless, without further ado, all projects

conduct Health Impact Assessment (HIA) reports and are

preparing equipment readiness for operation.

2010 challenges are testimony to direct effect of PTT Chem

Group’s determination towards social and environment

responsibility with our business performance and plan.

Therefore, it is with our honour to announce that PTT Chem

Group has joined the United Nations Global Compact and

support The UN Global Compact’s ten principles in business

conduct with the group’s CSR strategy.

PTT Chem Group is resolute as portray in this report in its

determination and progress as a leader in Petrochemicals &

Chemical as well as a role model in Corporate Social

Responsibility.

We have the company incorporated such responsibility in all

activities to help lead to sustainable development as stated in

our vision: Creating sustainable social value through innovation.

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Sustainability Report 2010PTT Chemical Public Company Limited 04

Page 14: PTTCH: Sustainability Report 2010

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Page 15: PTTCH: Sustainability Report 2010

Last year, it was our pride to take a big step toward a global social responsible

company by participation in United Nations Global Compact, the UN initiative

for responsible businesses and supporting UN sustainable development initiatives

and goals. There are over 8,700 participants from 135 countries comprising of

leading companies, NGOs, academics and government agencies. To date, the

Global Compact stands as the largest corporate citizenship and sustainability

initiative in the world

PTT Chemical upholds the UN Global Compact’s ten principles and commits to

integrate the 10 principles into PTT Chemical business process through the

company Sustainability Strategy. The progress to date of our actions could be

illustrated as follows:

Sustainability Report 2010PTT Chemical Public Company Limited 06

Page 16: PTTCH: Sustainability Report 2010

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Page 17: PTTCH: Sustainability Report 2010

Areas Global Compact Principles Actions

Human Rights

Labour

Environment

Anti-corruption

1. Businesses should support and respect the protection of internationally proclaimed human rights2. Businesses should make sure that they are not complicit in human rights abuses

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

3. Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining4. Businesses should uphold the elimination of all forms of forced and compulsory labour5. Businesses should uphold the effective abolition of child labour6. Businesses should uphold the elimination of discrimination in respect of employment and occupation

7. Businesses should support a precautionary approach to environmental challenges8. Businesses should undertake initiatives to promote greater environmental responsibility9. Businesses should encourage the development and diffusion of environmentally friendly technologies

10. Businesses should work against corruption in all its forms, including extortion and bribery

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

• One of the elements in PTT Chemical Strategy, “Environment” focusing on energy efficiency, whereas pollutions and wastes management considered as fundamental practices• Written company’s code of conduct on treatment of communities, society and environment and written Good Practices on undertaking of transactions with business partners who shares its ideals of social and environmental responsibility• ISO 14001 environmental management system is in place for all major facilities, which has environmental risk assessment as a requirement to prevent the impact

• Written company’s code of conduct on conflict of interest, procurement and treatment of business partners, acceptance and giving of gifts, assets or other benefits and internal controls / audits and accounting / financial reports• Disclosure of PTT Chem Group Corporate Governance Policy and Business Code of Conduct on the company’s website• PTT Chem Group Business Code of Conduct Hand book for suppliers and business partners to disclose fair business practices• Whistleblower system for internal complaint• Grievance system for external compliant through the company’s website, letter and facsimile

Sustainability Report 2010PTT Chemical Public Company Limited 08

Page 18: PTTCH: Sustainability Report 2010
Page 19: PTTCH: Sustainability Report 2010

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-�������:����075��55���27�������

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(1) PTTCH production = 1,863,000 tons per year and

PTTPE production = 1,025,000 tonsper year

(2) PTTCH production of Butene-1 andButadiene = 100,000 tons per year

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

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(7) TOCGC production = 300,000 tonsper year and expansion project

production = 95,000 tons per year(8) EA production = 50,000 tons per year(9) TEX production = 50,000 tons per year

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

(13) TTT(14) PTTUT(15) NPC S&E(16) PTTME(17) EFT(18) VNT production = 280,000 tons per year(19) PPCL production = 200,000 tons per year and Bis-Phenol-A = 150,000 tons per year(20) Bio Creation(21) Myriant(22) PTTICT

Sustainability Report 2010PTT Chemical Public Company Limited 12

Page 22: PTTCH: Sustainability Report 2010

<)������'���&:����

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Performance �� Oleochemicals

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���22�075��55PTT Chemical is a fully integrated petrochemical and chemical

company. Our products are derived from our main product,

Olefins, namely ethylene and propylene with other products

including EO-Based Performance and Oleochemicals.

The Company also provides services to support PTT Group's

production capacity, such as shared facility, jetty and storage

tank farm. The Company's distinctive business expansion plan

will enhance its competitiveness, as well as elevate Thai

petrochemical industry into the international arena.

Sustainability Report 2010PTT Chemical Public Company Limited 14

Page 24: PTTCH: Sustainability Report 2010

“Chemicals” does not only enhance the quality of life, butalso plays the significant role in everyday life as fundamental

products of four requisites.

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����&-��#����"�����&�/��&�)�*��#��#�"�#$�

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�7��55������75�����:2�-���PTT Chemical works towards strengthening our economic,

social and environmental performances, in order to lay a strong

foundation for a growing international presence and to

become a leader in petrochemical sector. As we expand our

company into a new era of strength and stability, PTT Chemical

realizes that our key challenge is to propel our operation with

responsibility to the society and environment, as well as putting

in place CSR practices in line with internationally recognized

standards.

075��55��75�����:�2�����PTT Chemical believes that business sustainability cannot

success upon profitability alone, but also by operating responsibly

can sustain our growth path. PTT Chemical operates on a

foundation of Corporate Social Responsibility Framework of

PTT Chemical.

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�����������������������!"#�"�#$�

����� ������� ����'!+���7����89��*���"!+��� ������ �� ���

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and Leadership

Human Rights

Labour Rights

Environmental Management

Fair Operating Practices

Social Investment and

Community Development

Supply Chain Management

Product Stewardship

CSR Reporting

Stakeholder Engagement

���������������������������PTT Chemical Public Company Limited is committed and

devoted to providing a better quality of life for our entire

workforce and society through “Innovation”, which guides us

towards the shared value between the company and society

as a whole.

We believe that Innovation is originated through the process

of thinking, learning and implementing, leading to benefit

and better new value, starting from employees to community,

society, industry and our country.

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��������������(����"�� ~ ������%&�"�� ����� �-��%&��%"�

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4. �����8��-�����-��*�(!)���������� ��!+��(������

������ �����������()��*�("���� �,� � �'��

5. ����(�1!+�-������������ �� ���%)+��������� ���������

��()��*�("���� �,� � �'�� "�,����-��,� �"�J������

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PTT Chem Group considers its essential to embed CSR into its

management strategies and to practice CSR as a part of its

business operations. As such, PTT Chem Group continues to

embed the principles of CSR into the way we manage our

business on a day-to-day basis and from board room toshop floor.

������������2��5���5�:�2����#�������PTT Chem Group has appointed PTT Chem Group’s Corporate

Social Responsibility Committee since 2009 to be responsible

for strategy formulation and execution. At reporting time, the

Committee comprises of 11 members with PTT Chem Group’s

CEO as the president of Committee along with top management

from each “Value Center” and other business functions. The

Committee members must be knowledgeable in assorted

disciplines so as to blend their knowledge and competence

to oversight the CSR governance of PTT Chemical. The

Committee is accountable for playing proactive roles in

decision-making, direction-setting and provision of oversight

of management’s performance in implementing CSR Policy

and strategy. This also ensures implementing the vision and

strategy effectively. The committee’s role and responsibility are:

1. Set PTT Chem Group CSR’s policy complying to PTT Chemical

standards and international standards

2. Give advice, promote and support resources to related

parties to enable CSR plan implementation effectiveness

3. Govern and monitor the group’s practice with continuous

improvement that conforms to the policy including required

standards

4. Review and approve CSR action plan and assess the group’s

CSR performance

5. Account for CSR report preparation in line with international

CSR standards

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Page 29: PTTCH: Sustainability Report 2010

�0(������()��*�("���� � (CSR) !+��+���'���� CSR

��#1�#�����)����8�����������(�1!+��������� ������

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-��� Corporate Strategy Deployment & Alignment 3$� ������

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!+�!)� ��,� (��>��| ������/ ����(�1!+!+�"��"��� ��

�������()��*�( �-�����%:�(�"�"�!)� ��!+�����"��"�

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�� Corporate Dashboard 9������%��*� BSC Monitoring

!+� CSR Committee

The PTT Chem Group’s CSR Pol icy and Strategy are

communicated and deployed through this Committee in

Corporate Strategy Deployment & Alignment sessions. The

Committee members are responsible for deploying CSR Policy,

Strategy and action plans; direct and review CSR performance

in their line of responsibility. Reviewing of performance in

implementing CSR Policy and Strategy is implemented on a

quarterly basis, as well as reporting through Corporate

Dashboard within BSC Monitoring and CSR Committee Meeting

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$ ������ &���$ ����� % ���������� �''����$ ���#���* ��������� % ���$ ������ % &��������$ ������� &''����$ ������(������ �''������$ ��������� �)�����

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��%_���)���� �������%��*��8�������| �������/ ��/� 5 ���/

������(��� ��-����2�� !+��-��������"��+���'�������

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In 2010, the Committee met 5 times to review, set and approve

CSR Strategy for PTT Chem Group. In addition, the Committee

has set medium and long term goals, including material issues

to group and programs to be achieved within 2015 as depicted

as follow:

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�+��(��>�� %"�. �����+ $����������-��������="��%������

���������()��*�("���� �!+���� !��+�� 3$� ���������=��� ��

"�����%���(��������������������������,� ��� ��������/

���"��-��������%�������-+����/�����(����������*�*�!+�

)1��������������������,�� ��(��������� ��,� ���

�8�����������(�1!+��������� �����������()��*�("���� �

,� �+��(��>�� %"�. �����+ �$ �������������(���+���(

�������=,� %������"�� ~ ��������,�� �%&�����-�$� ,� ���(�����

��-���+���'����������� �����������()��*�("���� � ������/

�(����������!+�����,���������������%������������%�����!+��

�����������=!+��� )+����("����������������� "+����)1��

������������/ 9���!+�9����� �'�� ��/ ��/ -+����������%�����

�������=�������*�%����(�%���%5���-+���� 3$ � ��#$

����� ����������������� �������="+��������%+���!%+

"��9���2�>J��� �� � !+���� !��+��

��/ ��/ %���������������()��*�("���� �����+��(��>�� %"�. �����+

���%���������%&�%�����������������="��������������������

�� �� ������/ !)� ��!+������(-���,� ��������� ����%_

���)���� %����(�%���%������"�� ~ �� "���

The nature of our business means that social and environmental

issues are material to our future success also material to

the interests of local communities and other stakeholders

in location where we operate.

Through formulation of our CSR Strategy, PTT Chem Group CSR

committee defined priority areas and reviewed completeness

and comprehensiveness of the issues, we identify as material

to our business and our internal and external stakeholders.

Our assessment of materiality is a judgement based on a wide

range of factors including our ambition levels, priority and the

changing landscape.

The CSR issues, we regard as the most material including in our

progress and plan at the end of 2010 are shown in the table.

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49

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49

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

• Communicate and arrange contest for energy saving in offices.

Energy Management

Efficient Operations

WaterManagement

Conserve energy in processes and offices.

Promote an energy saving awareness to all employees.

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

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

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

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

47 • Increase water use efficiency, e.g. increase a number of water circulationin cooling system and inspection of valve and leakage. However, due toproduction turn down from raw material limitation and turn around at production unit#1 of olefins plant I-4, resulting in increase rate of water consumption than the previous year.• Analyse and calculate water use efficiency per ton product and monitor against criteria.

• Support and study appropriate technology to further increase the proportion of reused and treated wastewater in the production process without compromising production and product quality.• Reduce water use in production process and continuously monitor and analyse water efficiency per ton product.

Improve efficiency of water use in the production process.

49 • Support and study breakthrough technology to improve energy efficiency.

Improve efficiency of an existing reverse osmosis (RO) system, e.g. changing filter and pumps.

Manage discharge of treated wastewater.

48 Install RO at PTT Polyethylene and TOC Glycol to efficiently treat and recycle treated wastewater to production process.

Priorities &CSR

Framework

Materialissues Page

2010 Plan

2010 Performance

2011Plan

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Page 35: PTTCH: Sustainability Report 2010

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

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

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

Maintain products quality to align with international safety and health standards such as high density polyethylene (HDPE), low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) resins, which now comply with US Food and Drug Administration (US.FDA) specifications and Restriction of Hazardous Substances (RoHS) standard.

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

56Product Stewardship

Organization Governance

Collaboration of industrial sector for the mutual benefits of our communities

Green and user-friendlyinnovation

Continue to expand certification of existing products to cover environmental aspect (i.e. in product labelling) through studies of environment label standards.

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

Join networking with sustainability organizations.

5Implementation of PTT Chem GroupCSR Strategy in conformance with international sustainability guidelines

Continue to expand our networking with sustainability organizations through studies of criteria of these organizations (e.g. DJSI, FTSE4GOOD and PRI) with respect to relevance and priority to PTT Chem Group

Collaboration of industry to improve community quality of life

83 Take part in founding and join the network, Community Partnerships Initiative, a network of 5 large companies in Map Ta Phut Industrial Estate with PTTChem Group’s CEO as the group’s president. The network is founded with clear objectives which are to develop a pilot environmental friendly factory, internal monitoring process and enhance community quality of life and education. In addition, Community Partnerships Information Center has been set up.

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

Corroboration in the industrial group to manage social issue

• Form a joint venture with reputable oversea company to study the production of Polylactic Acid (PLA) and Polybutylene Succinate (PBS), bioplastic polymers from sugarcane, corn flour and tapioca. • Continue our business dedicated to oleochemicals in which produce natural chemical products from natural materials like palm oil, palm kernel oil, vegetable oil and animal fat. In 2010, oleochemical business is accounted by 5% by capacity of PTT Chemical Portfolio.

Expand the business in response to bio-plastic demand

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

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

Priorities &CSR

Framework

Materialissues Page

2010 Plan

2010 Performance

2011Plan

Sustainability Report 2010PTT Chemical Public Company Limited 26

Page 36: PTTCH: Sustainability Report 2010

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��33��3�������������#�������PTT Chemical is committed to conduct business in accordance

with the company’s good corporate governance and underlining

the business ethics, transparency and accountability to its all

stakeholders, which consist of the shareholders, customers,

business partners, business competitors, creditors, government,

employees, communities as well as society and the environment

at large. Its goal is to become a leading company in

petrochemical sector, chemical, public uti l i t ies and

supplementary services of international recognition for the

efficient management of PTT Chemical that can render best

benefit for the stakeholders, ultimately paving the path

sustainable long-term growth.

�������#�������!�2���The Board of Directors, the Management and all employees

are firmly committed in the adherence to and application

of the principles of Good Corporate Governance.

�������5���5�:�2��� Having responsibility for their work with competence and efficiency.

�E7���:2����3�����<�����5 Providing equitable treatment and fairness to all stakeholders and applying code of conducts and business ethics in conducting business.

����������7���:�2���� Having accountability in own decision making as well as ability to explain why the decision is made.

����������2�����3���27�� Having a vision to create long- term value for the organization.

���������5����� Having transparency in the work process and disclosing information to related parties in an accurate, complete and timely manner via proper channels of disclosure.

Sustainability Report 2010PTT Chemical Public Company Limited 28

Page 38: PTTCH: Sustainability Report 2010

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Since December 2006, PTT Chem Group announced its corporate

governance policy along with distributed the Corporate

Governance and Business Code of Conducts Handbooks.

In 2009, it has received revisions and updates to meet more

industry and global standards and was enforced throughout

the group. In essence, the handbook consists of two parts: first,

the policy and structure for corporate governance to bolster

confidence in the Company’s business and second, the business

code of conduct for all PTT Chem Group employees to

observe as discipline in their business conduct. The handbook

covers issues from anti-corruption, transparency, fair competition

and fair marketing, respect to customer privacy and information

protection, fair service to regulatory compliance.

Corporate governance policy is deployed through this hand

book, which is issued to all managements and every employee.

As a commitment by every individual within PTT Chem Group

to the policy and business code of conduct appearing in this

handbook, PTT Chem Group is asking all recipients to master and

sign their names in acknowledgment. In addition, for new recruits,

we provide trainings on the policy and business code of conduct

appearing in this handbook to jointly foster an organization with

an internationally accepted standard of corporate governance.

Moreover, PTT Chem Group expects all staff to help monitor

on going corporate governance practice by support upright

reporting to superiors, internal audit and/or Company Secretary

regarding to incident related to breach or doubt of breach of

corporate governance policy and business code of conduct.

All reports will be treated as confidential. If found guilty as

suspected and charged, related staff will be punished escalating

from corporate rules up to legal prosecution depending on

the case. This is for PTT Chem Group to uphold good governance

to its best. Also, PTT Chem Group assigns the Corporate

Governance Committee to oversee, evaluate and review

the deployment of corporate governance policy and business

code of conduct to ensure good governance of the organization.

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�+��(��>�� %"�. �����+ �������-��*�� �� �-�����#"��"����(#�

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��-��� )1�(��-������(�1 ��(���� ���%&�%�������"��%_ ������-����� ��

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-������"������()��*�(,� "���������(�(-� ����������

)�����((����"��'���"!+����((��'� �%&�"�� ��������/ �+��(��>��

%"�. �����+ �������-��*�� �� "�� ~ �����)1������������9����

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�*�� )����� ���(�3"',� (��>��| www.pttchemgroup.com

-���"��"����(#�0�"� ���-��� �� �����+ ���������'!+�

%��*�������' 0��%���)*�� �� ���"��"���� �+������������"�� ~

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!�2�����2�(7��2��� PTT Chem Group’s policy is to conduct business under the law

with utmost respect and honesty. Political neutrality is enforced;

hence, political support both direct and indirect in forms of

funds, resources or any types of property are prohibited

towards political parties, politicians and/or related groups.

This is not to be conflicted with good citizenship which the

PTT Chem Group promotes democracy and supports election

rights according to the Thai constitution and other laws.

��6�3������-�5�2�57������5����� PTT Chem Group realizes the importance of accurate and

reliable information and information disclosure. The PTT Chem

Group’s policy is to provide fair, equal and transparent

information both financial and non-financial through valid

access channels in a timely manner. The information provided

must be prudent, concise, valid and provable with suitable

language that portrays both pros and cons to maintain

information integrity for shareholders and other stakeholders

according to the laws, the group business code of conduct

and relevant government agencies’ requirements.

The PTT Chem Group emphasizes on establishing two-way

communication channels for our employees, such as annual

meeting between the top management and employees to

inform on strategies and business directions including any

significant changes within the group; intranet system; and

the group web board. In addition, the PTT Chem Group

maintains various communication channels to allow different

groups of external stakeholders to equally reach us, such as via

our website (www.pttchemgroup.com), or direct contact with

our investor relations or public relations. Placement of the PTT

Chem Group’s communication channels are addressed in

various medias to reach different audiences. Annual shareholder

meeting is also a channel for even the minor shareholder

could communicate recommendation and direction to the

organization.

Sustainability Report 2010PTT Chemical Public Company Limited 30

Page 40: PTTCH: Sustainability Report 2010

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�����2��7<�� PTT Chem Group values and institutes an ongoing internal

control process. In doing so, PTT Chem Group has appointed

internal audit committee to review and evaluate the adequacy

and efficiency of internal controls covering assorted activities

and reporting them to management and shareholders.

PTT Chem Group organizes the internal audit as a separate

unit, responsible for the assessment of sufficiency and

effectiveness of the internal control on the operations and

activities of every business unit in line with the annual audit.

It must regularly report to the Audit Committee, to promote

the effectiveness of the control environment, risk assessment,

including risk related to corruption and effectiveness of

internal controls under the ethical and standard internal audit

standards for the independence and quality of the internal

control.

The Audit Committee submitted the evaluation report on

the 2010 internal control to the management. The Audit

Committee made suggestions to the management on continued

improvement in the internal control. In 2010, no legal action

was initiated against any of PTT Chem Group’s businesses

in respect to corruption, accounting fraud, workplace

discrimination, anti-competitive behaviour nor misconduct in

marketing communication.

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/-����%{�-�,� 0�� ������1%!((�����3' ������/ �-�����

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����%&�������� -���(�����)+����(��8������-"����8'����%&�

������� ,$/� 0����((���"��"��������-������ ������

�3�2������27��������!6�3���������5�2�PTT Chem Group uses a number of key indicators to evaluate

and reflect the company’s overall performance (BSC Scorecard)

across financial, human resource, corporate social responsibility

and etc. Evaluation results are part of performance review

and compensation of CEO, top management to employee

of every level respective to each position’s responsibility.

��5 ������3�� Corporate Risk Management Committee of PTT Chem Group

is aware of importance of risk management to achieve business

objectives. Therefore, the policy and systematically corporate

-wide risk management framework are developed. Accordingly,

the structure of the corporate risk management function has

been reformed since 2009 and subsequently the revision of

risk management manual according to the international

standards. In addition, the PTT Chem Group has announced

the use of Risk Management Procedure to compliment

the manual including process to monitor risk status and progress

of risk management plan and reporting to Risk Management

Committee and the Board of Directors according to the frequency

and process identified.

PTT Chem Group has constantly ensured its group of

companies’ risk analysis in both quantitative and qualitative

aspects. The Value-at-Risk (VaR) is used in analyzing financial

impacts at various probabilities resulting from changes in key

assumptions. PTT Chemical also uses an analysis of impact-

likelihood relationship in form of Risk Matrix in order to

comprehend potential effects on its corporate KPIs and project

goals. The Company advises its risk owners within PTT Chem

Group to set up risk mitigation plans to reduce the likelihood

or impact of the risks under their responsibilities. Progress

monitoring is regularly reviewed.

Sustainability Report 2010PTT Chemical Public Company Limited 32

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'V���#�����!"#�

!��+��(��>�� %"�. �����+ ������-��������=���������-��

��((���(��-��������� �������+�� ��(�"�J�����+ !"����

+��>8��<���,� ��"��-���%�0"����!+�,� �+��(��>��| ���-�

�����-+���+�� ������� (� %��������-������,$/�!+�� ����� )+

"�����(��+��%{�-�-������������������,� �+��(��>��| ��� �

������= ������� �� �+������!(� ����%&� 2 %���9�-+�� ���!��

������ � ,� ��"��-��� !+������� � �<���,� (��>��|

!+�(��>�����+��

��%_ 2553 �+� �(��>�� %"�. �����+ �������(��-��������

������� "� Corporate Risk Profile !+������������-'!��0��

!+��#�����8'�2�>J���0+�/%����2�� ����)+����("�����

������������-+��,� �+��(��>�� %"�. �����+ 0��������

� �'����������,�� ��(%���������������()��*�("���� � ���!��

��������� ���-�����+�� ��(���"�� ���,� )1����������������

�����*�����,� �����(�(!+�-+����8Z'������ � !��+��

�����7�����>�����1��������#,� (��+��� ������� ��(

����"�(0",� � �'�� �%&�"�� ��/ ��/ �+��(��>�� %"�. �����+

������������!+����������"�!)�������������� ��� "�������

"+����/ %_

��5 �)����5Although, the PTT Chem Group has emphasized on aligning its

risk management practice to the international standards,

due to the unique nature of the petrochemical industry and

of its Group’s activities, we inevitably realise that certain risks

could thus have significant impacts on PTT Chem Group’s

goals and business operations. Such risks are categorized into

two types: industry specific risk and company and the group

specific risk.

In 2010, PTT Chem Group has managed risk according to the

Corporate Risk Profile including has trend analysis and

monitor world/Thai economic situation those could impact

business operation of the PTT Chem Group. Risks in relevant

to corporate social responsibility of the group include responding

to stakeholder expectation, unclear environmental regulatory

requirement, human resource development for organization

growth. Hence, PTT Chem Group has been developed and

executed risk management plan continuously throughout the

year.

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Page 43: PTTCH: Sustainability Report 2010

Sustainability Report 2010PTT Chemical Public Company Limited 34

Page 44: PTTCH: Sustainability Report 2010
Page 45: PTTCH: Sustainability Report 2010

���(�����!��)����(�������&6��,�&����0�12��

Page 46: PTTCH: Sustainability Report 2010

����/�����5�������!�����3�#�7��F��)�������2�)��75

�#.�����

<)����'���&:����

075��55������#2���

70%

1 TOP3

TOP10 2.8

������/'>

EMERY Oleochemicals @�>�������:����W�/J>/��!�"!����"� ����]��������Z ��+���+"K+�^����Z"+��\�;��

EMERY Oleochemicals is selected for outstanding Oleochemical producer from natural material in Asia Pacific

/J>/�� HDPE +���+"K+�^�#J��# ����Z"+

Top 10 Among largest HDPE producer in Asia

/J>/��Z�_���^�#J��# ����Z"+

Among largest Olefins producer in Asia

����� �/��!��;��<'

Olefins productioncapacity

����� �/��!��;��<'��<�������� �� �# +^������`

Of Thailand’s Olefins production capacity and market share

103,186���&�

����2����7�

million baht

million tons/year

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Page 47: PTTCH: Sustainability Report 2010

����/��!"����5�������

)�������2�"���2����5

2553 25522010 2009

�����������,�Revenues from sale of goods 98,656,003,913 83,952,092,721

������������-�(�����Revenues from rendering of services 2,431,290,126 2,077,078,053

� ��%5�)+��(Dividends income - 21,090,045

����(�/��(Interest income 163,387,735 219,177,658

���������"��!+��%+��������Net foreign exchange gain 1,475,848,967 648,469,768

���������Other income 459,882,792 165,022,462

�������Total revenues 103,186,413,533 87,082,930,707

(��>�� %"�. �����+ ����� (-�*�) !+�(��>���� (����,�������-��(!"�+�%_��/���������� 31 ������ 2553 !+� 2552

� +@�>Revenues

(���� ��financial budget

PTT Chemical Public Company Limited and its SubsidiariesStatements of incomeFor the years ended 31 December 2010 and 2009

Sustainability Report 2010PTT Chemical Public Company Limited 38

Page 48: PTTCH: Sustainability Report 2010

With more than 2,000 employees of PTT Chem Group, we

bel ieve our business direction creates product and

innovation that contributes to responsible and sustainable

development in where we operate. Other than our core

business vision and mission, we have investment policy to

achieve the target of a global leader in chemical product

from natural raw material and policy in continuous development

of product and innovation to response to the need of our

customer. This leads to our contribution in sustainable economic

development and economic distribution in both local and

national level.

-��-"� : ����!(� �������� ��+ �����(��>�����3$� ������!�� ������%&�����-�$� ,� ������� ����������%���9��-�

0�!�!�� �%&������!�"�� -�� 9��"� (����,�������-��(%_��/���������� 31 ������ 2553

Note: Share of profits from investments accounted for using equity method which was included as part of total

revenue has been reclassified to be separately presented as an item under profit and loss statement for

the year ended December 31, 2010

�������'��Total Assets

152,3182008

85,1112008

11,7392008

6,8022009

10,2902010

87,0832009

103,1862010

160,2512009

168,0222010

�������Total Revenue

���������Net Profit

������������ ������ 2,000 �� ���������-���(�+��(��>�� %"�.

�����+ ����*��������2�� ���������������,� ������� )+�"9�8Z'

!+����"�������� �����-�%����2!+���/������������2�������7��

��/ �������2�>J��� �� � ��� !��+������%&��%��� ������()��*�(

!+��� �� ����-������������2�'!+��������-+��,� ���!+��

�����0(������+ ���������-�(��+��%{�-�������%&�)1�������(0+�

�����������9�8Z'���)+�"�����"#���(���*�"� !+���0(������7��

��89��)+�"9�8Z'!+����"��������"�(��� "�����"�� ���

,� +1������� "������� 3$� ���-��������%&�����-�$� �������7��

�2�>J�������� �� ��(�1���(��������������%�1��2�>J�����/ ��

����(%����2!+�����(��� #���

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* ��%���8���9�>�� �������"�(���+ ��������(���������� �������� �������+ �����%_ 2553 ��� 736 +���(��

* Significant estimated value of aggregated BOI tax relief in 2010 is 736 million Baht

1,723 968*

�����&6��,�&����0�12��

���"����%&���� ����=�����������������,� �+��(��>�� %"�. �����+

������������ ��"�������==�,� !(���' ������ “���9�8Z'����

*���"*���������"���” �������-��������="������� ��������

�����7��)+�"9�8Z'!+����(�����)+�" 0��<������ �� ������

���+�����*��+� ��!+����+����%+���X�3���'(��������3�'

������"���!+������� ���-�~ ���+��������,� ��� Olefins,

Polymers, EO-Based performance and Oleochemicals

�����3����5���5�:�2���Innovation is vital to PTT Chem Group. With “chemicals

come alive through innovation” as our brand testament,

it grooms us in sustainable product development and production

especially in energy conservation, CO2 gas reduction via

innovation, and other new technologies for Olefins, Polymers,

EO-Based performance and Oleochemicals.

�/������0�12���!"��&���

��&�/�����������"�������� �����3��������:7�����������������<�������3��

���������,���# �)$"����#�#.�� .'#��6/��!����.��������!#

�����3���-�5��:7����������� ��2<5�

� +� �Item

2552 (> �� �)2009 (Million Baht)

2553 (> �� �)2010 (Million Baht)

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

����*���������(��-��������������� !��+��Environmental investments and expenditures

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

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

������3�/� ������ ��������� #��� (��� )Local purchasing (Rayong)

31

42

3,000

40

39

4,760

992(708 ��)

1,118(879 ��)

��Total

4,975 8,275

Sustainability Report 2010PTT Chemical Public Company Limited 40

Page 50: PTTCH: Sustainability Report 2010
Page 51: PTTCH: Sustainability Report 2010

�(����(��(��,���$(-(��������&6��,�&�����"��������

Page 52: PTTCH: Sustainability Report 2010

�+��(��>�� %"�. �����+ "��-�����#$ �����()��*�("�����

�1!+���>���� !��+�� �$ �����-���0(� �%{�-� �+���'

!+�!���� ���(��-��������������� !��+�� "+���������

%��*=������7����� �� ����%&�-+������������������� 0��*�

!���� %�������9���*� ����2�2�>J��� (Eco-Efficiency) ��%&�

��*��*�/���%�������)+��������� ��������� !��+�� )����8�)1�(��-��

����(�1 ,� (��>�� (Top Team) 3$� �������)1��������-=��%&�%�����

��������/!"�+�0� ���������*��*�/����� �+����%�����!����

�����(��-����������� !��+��,� 0� �� 0�����-���%&�!)� ��

��/ �����/�!+������ ����/ ����"��"���� "������� )������

%��*�,� !"�+��+�������� 3$� ��� ������)1��������-=�,� !"�+�

�+���������%&�%�����

��/ ��/���"��"�)+��������� �� "+�������%���������-���

,� !)� ���� �+�����(�9���2�>J��� �� � !+���� !��+��

��,8���/� ���������������8������%��*� Balanced Scorecard

Monitoring 3$� �������)1��������-=��%&�%����� !+���� ������

)1��������-=�!+�)1�(��-������(�1 �,�����%��*� 0��������%��*�

��������

������-�!"�+�0� �����+��(��>�� %"�. �����+ ���������� ��

���������������� !��+���%&��%����2�� �������!+�����+��

"��%{�-������-�����,� � �'�� -��� �����%+��9�!+�

��� !��+�� 9��"��� ������%�������9��%:�(�"���� �-������)+�����

�-���!���� !+�"��"�%�������)+��������� ��������� !��+��

0�%����(���-��� ��"�����( QESH -��� ��(�����

��� !��+�� -��� ��(��-��9���<���<��!+�������� -��� ��

��((��89�� !+�-��� ����� �%�������9�����%+��9�

!+���� !��+�� "+����-��� �����%+��9� ��*������

!+���� !��+�� %�����+��������

PTT Chem Group is fully aware of its responsibility to the

environment ; PTT Chem Group has therefore defined

environmental policy, mission, strategy and approach in the light

of Sustainable Development principles. At PTT Chem Group,

we adopt Eco-Efficiency as corporate level indicator to monitor

our overall performance in environmental aspect. The indicator

is tracked and reported to Top Team management of PTT

Chem Group, which is chaired by CEO. Each operation plant

is required to adopt this set of Eco-Efficiency indicators and

determine their own environmental management plan via short

and long term plans with monitoring in Value Chain committee

meeting with the vice president as chairman.

Tracking and reviewing the suitability of the plans to economic,

social, and environmental concerns are implemented via the

Balanced Scorecard Monitoring session, with top management

as attendees and the CEO as chairman. The session is held

on a monthly basis.

The Safety and Environmental department, under Operational

Excellence, has main responsibilities to enforce, advice

enterprise-wide environmental plans, observe and correct

their respective outcomes. For effectiveness, QESH organization

delegate responsibilities to following units, QESH Audit,

Environmental Service, Crisis and Security Management Service,

Group Quality System Service, ESH Enhancement Center

and ESH Services for each Value Chain.

�&�������������"��������������3���2������3��

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Page 53: PTTCH: Sustainability Report 2010

��������/ �+��(��>�� %"�. �����+ � $�#�����%:�(�"�"�,����-��

!+���-�������� !��+���%&��"�J��,�/�"�������������������

��%_���)���� �+��(��>�� %"�. �����+ ���������� ���������+��

"������-���-���%&���� �� �$ �������*����-������%��(������

��%:�(�"�-���+����,����-��"���-�������� !��+�� ��/ ��/

� ������������"���(((��-��������������� !��+�� �"�J��

ISO 14001 !+��������%+��9�!+���*������ �"�J�� ��.

18001/OSHAS 18001 0���/����%:�(�"� ��,� (��>�����+��(��>��

%"�. �����+ ���)��������(�� ��((�"�J���� �+���!+�����

(��>�� %"�. �����+ ����� (-�*�) ��,�#�� ��--�$� ��,�#��

��-��� !+���,�������(����!+��+� )+�"9�8Z' (��>�� (� ���

0�+������+�� ����� (��>�� ��0�3���+��+ ����� !+�(��>�� ��0�+�0�

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

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

�+��(��>�� %"�. �����+ �+� �-��#$ �������=,� � �'�������

���9����"��-������������"�/ ,$/� �$ �-���������!+��,���%

�(�(����J�����*�� ��������������������7���0(�!+�

��-��!���� ��������� ��,� 9����"��-��� ���)+�����

��� ��-�"�� ~ ��������,�� 3$� �+��(��>�� %"�. �����+ ����,���%

��������!+��� ������������� ��,� � �'����������9����"��-���

���������"�/ ,$/� !+���� "�!-�� �������= ���� %������+��

��"��-����+��"�� �9���"��-���!-� %����2�� ������

�#�(��%�0"��+�!-� %����2�� ���������(��>�������(��

�� �� %������9���"��-���!-� %����2�� �� ���#�(��

�+� ���������"��-��� 0���%_���)���������������������(�8�

�����������(�5 �������-��,� %��*�*� ��������%��(%�� �����

“0�� ���-�������������������-�����)+����("��*�*���� ���!�

��/ �� ������89����� !��+�� ����������*�"� !+���,9��”

PTT Chem Group strictly complies with the environmental

regulations as business protocol. In 2010, PTT Chem Group

conducted its business in compliance with the regulations and

consequently there were no fines for non-compliance with

environmental regulations. Our environmental and safety

management systems are aligned with ISO 14001 standard

and OSHAS 18001 standard. Areas that are certified for such

standards are olefins plant I-1 and I-4, Product warehouse

and port branch, Bangkok Polyethylene Co., Ltd., TOC Glycol

Co., Ltd. and Thai Oleochemicals Co., Ltd. PTT Chem Group

aims to have all required operating areas to be certified to

these management systems.

PTT Chem Group realizes the importance of joining forces

with public organizations and associations established by

industrial sector. Hence, PTT Chem Group has joined public

organizations and industrial associations, and taken significant

roles in developing policy, industrial guidelines and relevant

laws and regulations. Some positions taken are chaired by

PTT Chem Group including Chairman of the Plastic Industry Club

in the Federation of Thai Industries (F.T.I), Director Petroleum

Institute of Thailand, Director of Thai Listed Companies Association

and Vice Chairman of F.T.I. for the Institute of Industrial. In 2010,

PTT Chem Group has worked closely with the Sub-committee

for public hearing to develop the criteria on “the projects or

activities which may seriously harm the community”

Sustainability Report 2010PTT Chemical Public Company Limited 44

Page 54: PTTCH: Sustainability Report 2010

QESH Organization

������������ ���� ���� ���� ���

��������� � ��������������!��"#$% &���� �'(�$ ����������������!��"#$

) ��) %� 8��"�����5�*9

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��<��2���3���2�!�<7��8��"�����5�*9

������������ ���� ���� ����

������������ � �)����� �%&����%� �$ ,,-!� ��� ,-!�

8��"�����5�+9

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,,-!����<�,-!��!�G��8��"�����5�+9

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8��"�����5��9

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���!��"#$)-��% �$ 8��"�����5�&9

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Z[#���'���<�#�����"��������

��������!���� .QESH ��������.�����

��������� ��������.���������/��%/�����������

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�+��(��>�� %"�. �����+ "��-���#$ �������=������1!+���>�

��� !��+��!+����������>'����������*�"� "+�����+� �-��#$

������%&���������� ���+��-��� ����"�(0"�� �2�>J���!+�

������>���((����2 �����/ � �� �������+�)+����("����� !��+��

0����%��(%�� ���(�����)+�"!+�%{� ����������+��>"�/ !"�

!-+� ������ �$ �����7��!+�%��(%�� ���(�����"+������ �+���

�-�~ ��� "������� ������*�����������*�"���� �%�������9��

������-�����)+����("����� !��+��!+�*�*� ��(�1��%��(����"�(0"

�� ��������� �� �� �$ �����!���� ��������� ��"�-+�����

%�������9���*� ����2�2�>J��� (Eco-Efficiency) 0�����#���

���3$� 2��9�������)+�"���"�(��� "�����!,� ,�� !+�������-�����

)+����("������������*�"�!+���� !��+��

�����"��"�%�������)+��������� ��"�0�� ���%�������9��

�*� ����2�2�>J��� �+��(��>�� %"�. �����+ �$ �����-��"��*�/���

)+��������� ��0���� �� "��1���,� �-%��*�*�"� (UN) “A

Manual for the Preparers and Users of Eco-Efficiency Indicators”

0����������������(,��1+!+�"���"��"���*��*�/���%�������9��

�*� ����2�2�>J������ �"��1%!((!+�� ���0� ��0��+����' ��,�#��

��--�$� !+� ��,�#����-����� 3$� ��������������(��!+��� ��

)+��� "������� "�/ !"� %_ 2551 !+����,�)+�������������%�

����+����������%_ 2553 ���)���� 0��!)�������������(�+�

���~ 0� �����+��(��>�� %"�. �����+ 9���%_ 2554

%5���(��)+������������������� !��+��,� �+��(��>�� %"�. �����+

�������"�����(!+�"��"���� "������� %����(��� (1) ���

(��-����������������/� (2) ����*��+� ��!+�������>'�+� ��

(3) ����������X�3���������� +��>�� ����2 !+����,� ���

!+� (4) �����7��)+�"9�8Z'����%&��"�"����� !��+�� 3$� ��-��(

����� ����*��*�/����*� ����2�2�>J��� ���%����(�%�������*��/�

(Water Consumption) ����*��+� �� (Energy Consumption)

%���8�X�3���������� (Global Warming Contributions) %���8

�/���� (Wastewater Generated) %���8���,� ��� (Solid

Waste Generated) !+�%���8����*������+�*�/�0�03� (Ozone

Depleting Substances) ���� ��<(�(��/�%&�)+��������� ��,�

0� ��0��+����' ��,�#�� ��--�$� !+���,�#�� ��-���

PTT Chem Group stresses the necessity of balancing eco

system conservation and economic growth. In practice,

the group adopts Eco-Efficiency principles to prevents and

lower pollution in production processes from raw material usage

to continue developing alternative approaches to use natural

resource more efficiently with less effect to the environment

and surrounding communities, while maintain business

competitiveness.

PTT Chem Group adopts United Nations’ Manual for the

Preparers and Users of Eco-Efficiency Indicators in the

development of corporate level indicator. We have begun

collecting data and monitoring our performance against

the Eco-Efficiency set of indicators at Olefins plants I-1 and

I-4 since 2008 and expanded to other Value Chain in 2010

with plans to cover all plants in 2011.

Currently, monitoring of environmental performance of PTT

Chem Group under Eco-Efficiency consists of the following

aspects: (1) Water resource management, (2) Energy consumption

and conservation, (3) Greenhouse gas, air pollution and waste

management and (4) Eco-friendly product development.

Eco-Efficiency indicators consist of Water Consumption, Energy

Consumption, Global Warming Contributions, Wastewater

Generated, Solid Waste Generated and Ozone Depleting

Substances. Performance of Eco-Efficiency indicators in this

report are from olefins plants I-1 and I-4.

Sustainability Report 2010PTT Chemical Public Company Limited 46

Page 56: PTTCH: Sustainability Report 2010

�&�����������)#�� ������5�7�������3��

�/��%&�-�$ � ����������� �����="��������������������9�8Z'

�����/ ���)���������"��%���(%5=-����,��!�+��/�����/����

9��"������� �+��(��>�� %"�. �����+ "��-���#$ ����*��/�

�-�����%�������9���1 ���0����� )+����("����� !��+�� !+�*�*�

����$ ��������!+�������0�� ������(��-����������������/�

0�!�����%&� 3 ����� -+�� ���

(1) � ���� ����� ����?+ ���_�?:_��"K��������+��

�+��(��>�� %"�. �����+ ��������������8��� �����(��-��������

��������/�����/������ -������ 0��������"�/ 21�'%:�(�"����

����4{����� 9�!+� ����/������ -������ 3$� �%&�����������-���

9����J 9�����*� !+�9��)1�%����(��� �����������(��-��������

��������/� ��-���"�����4{����� 9�!+� !+�"��"���89��

�/�����/������ -������ !+�������%&�����"���������!+���(��

��(%5=-����,��!�+��/�������" 3$� ������� )+����("�����

�*��/���%09�(��09�,� *�*� !+��/��*���9����"��-���

(2) � ���� ����� ����?+ ���_�^Z> �������� �/��

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

"������� "�/ !"�%_ 2549 ��#$ %5���(�� )���-+����� 4Rs ���%����(

�%��� Reduce, Reuse, Recycle !+� Reclaim 0���2�!�����

����*��/���� �%�������9���1 ��� �*�� �����������(,� ���

-�������/�-+����� ����%�������9��,� -��� Reverse Osmosis

����((����������/���/ ������(�����)+�" ��������+�(��*�%��0*�'

�-��������� �%&�"�� �� �+��(��>�� %"�. �����+ "��-���#$

�������=,� !-+� �/�)���������%���8����� �$ ���"��"�/ ��(()+�"

�/��������/����+ !+�����*������(�����)+�" ������%&����+�

����*��/����!-+� �/�)����� �����/ � �%&�����*����������� ������

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

%�������9������*��/��-����� ,$/� %5���(��!-+� �/���(,� (��>�����+��

%"�. �����+ ������ ���(�/������� !+���� ���(�/�-�� %+��-+

3$� �0�� ,��,� �/���(�*��������/ ����/������ -������ !+�*+(���

��������/�� �(������ �/�,� 9�����*�"�� ~ ������%&��������

2��9��!+��� ��(%���8����*��/���*�� ����"��/�!+� ��� ��

��"��0(�,� �+��(��>�� %"�. �����+ �����������(��-��

��������������/��*������(�����)+�" ������-�����������#������

"���%���0����������("��!-+� �/��*���%09�(��09� !+�����������>"�

,� %��*�*������ ���

Water is a crucial component to the chemical business.

With domestic water resource problems in the past, effect to

both environment and business were eminent; consequently,

PTT Chem Group has initiated water resource management

projects with 3 main factors which are:

Water resource management in RayongWater resource management in Rayong

PTT Chem Group has collaborated with the water resource

management in Rayong working team, the collaboration among

government agencies, private and industrial sectors, to found

the operation center for an integrated water management.

Measures have been defined to monitor water-shortage issue

caused by drought and manage water quality in Rayong province.

Our proactive approach to water management aims to prepare

and tackle water-shortage issue in future, which could affect

the water use of communities and industrial sectors.

Water resource management in production processWater resource management in production process

Since 2006, PTT Chem Group has continuously strived to

conserve water resource by 4Rs concept; consisting of Reducing,

Reusing, Recycling and Reclaiming, to maximize the water

use effectiveness. Examples of initiatives are increasing cooling

water cycle and the capacity of Reverse Osmosis (RO) unit.

To reserve surface water and use natural resource worthily,

PTT Chem Group has installed desalinated water production

system to use seawater as an alternative.

In addition, PTT Chem Group continues to reduce our water

consumption and increase the efficient use of water. Currently,

PTT Chem Group has raw water sources including Dokkrai

and Nong Pla Lai reservoirs and reserved private water sources

which are connected to other reservoirs in Rayong province

and Chonburi province, including other private reservoirs to ensure

our capability to cope with water crisis period. PTT Chem Group is

committed to efficient management of our water to ensure

the continuity of our production without affecting the water

consumption by local communities.

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Page 57: PTTCH: Sustainability Report 2010

!)� ��-+�����������%�������9��������*��/� ��� �������

Capacity ���)+�"�/�,� -��� Reverse Osmosis (RO) ���0� ��

0��+����' ��,�#�� ��--�$� 3$� ����#+�����*��/������#$ 249,304

+(..

(3) � ���� ����� ��_���_�� �������� �/��

�/����������(�����)+�",� 0� �����+��(��>�� %"�. �����+

��"�� �����(���(�(������#1�%+��������0� �� 0�����"��"�

�����(��!+�(�(���/������� ��+�*��������-�!���������89���/����

(�(�� �%&��%"��"�J���������������%+���1��+� ��(��/���/

,� �����"��-����("���� 3$� �-++ �1��+� *��-�� 0����

-���(�(����89���/�,� ��� ���"��"�/ ������ ��"��������89���/�

��"0��"������"�����(��89���/� ��#$ ���"����������-'������

"�� ������3������ ��� -��� Chemical Oxygen Demand (COD)

!+�,� !,� +�+��/� -��� Total Dissolved Solid (TDS) ��������/

� �������"��"�"�����(��89���/���/ ���)������(�(���%&�%����

������ 0�)1��*���*�=%����-�� %:�(�"������+� ������,$/����(�����

��(��0� ����"��-��� !+��%&��%"��"�J����((��89��

��. ISO/IEC 17025 ,� ������"�J��)+�"9�8Z'��"��-��� 3$�

���)�����(���)+���"��������89���/����89������������"�J��

�����-�� ��������/ �� (��>���������/���/ �+�(��*�-������

(Recycle) ��#$ 30% 0�)������(�����%��(%�� ��89���/�

������� Reverse Osmosis (RO) 0���%_ 2553 ���)���� ����#

+�%���8�/���/ ��� 365,106 +(..

6���������������,�� ��!"-����-���\U��+��;�� .�-���"� ��� .�-�!"

�������573����������@����<��@+��26��5�!2���5

Our key achievement to increase efficient of water usage is

the project to increase the capacity of Reverse Osmosis (RO)

unit at I-1 olefins plant, which has resulted in reduction in

water withdrawn from nature (raw water) by 249, 304 m3.

Water discharge managementWater discharge management

To ensure there are no significant impacts on the environment,

all wastewaters from production process have to be treated

and controlled in accordance with the regulatory standards

before discharging to the industrial estate receiving canal,

Klong Chag Hmak. PTT Chemical wastewater treatment plant

installed the online monitoring equipment to measure the quality

of water discharge, Chemical Oxygen Demand (COD) and

Total Dissolved Solid (TDS). Moreover, the other parameters for

controlling discharge quality are monitored on a daily basis

the laboratory certified to ISO/IEC 17025:2005 standard. The

monitoring results of water discharge are better than regulatory

standards. In 2010, PTT Chem Group can recycle water discharge

up to 30% via Reverse Osmosis (RO) and reduce water drainage

up to 365,106 m3.

� �^Z>�_�Water

Consumption Rate[m3/ton olefins]

2009

10.83

2007

10.76

2008

11.72

2010

13.25

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

Sustainability Report 2010PTT Chemical Public Company Limited 48

Page 58: PTTCH: Sustainability Report 2010

�����)����� ������1+)����� ��������]3��$���������������3�������5���������<�#���75�#�5������3���

���������%&��+�2����"��-������9�8Z' !+�������()��*�(

"���� � "+����$�-+�����%��(%�� !+���7����� "�������

�+��(��>�� %"�. �����+ �$ �� ���������������+� �� 0�#��

���������>'�+� ���%&�����-�$� ,� ��������������� ��������/ ���+�

����*��+� ��� #���%&����+����%+�%+���X�3���'(��������3�'

(CO2) 3$� #���%&����������+����%+�%+���X�3����������������

�� -�$� ���

�����)����� ������1+)�����

�+��(��>�� %"�. �����+ �-��������=��(����*��+� ����� �

%�������9���1 ��� ��/ ���������+�����*��+� �� 0��*���%��8'����

%�������9���1 ����/ ���(��� ���>���%��8'"�� ~ �-��1����9������

�*� ���1���� "+������������2$�>�!+���7����((���������

�+� ���-�����+�� ��(�"�J�����+��� "������� ��(�1���(���

���� ��"���$����������*��+� ����� �� �������� ���������(

%5���(�� (��>�����+��(��>�� %"�. �����+ �*��X�3���*�"� (Natural

Gas) �X�3�*�/���+� 3$� �%&�)+�+����������(�����)+�" (By-

product Gas -��� Tail Gas) !+��/����*�/���+� (Fuel Oil) �����

)+�"�+� �� ��������/� ��(���!����{�!+����/��%&��+� ��

�� �����-��(�*������(�����)+�" 3$� ��%_ 2553 ������������

������>'!+��*��+� ����/ �� "� !+��� ������ �%�������9��

��� "������� ��/ ��/ !)� ���������=������������+� ��,� (��>��

���+�� %"�. �����+ %����(���

��,�)�����������'�����:�<)�/����

• �����(����� KEV (Key Energy Variables) -������"��!%�

��������,�� ��(����*��+� �������(�����)+�",� 0� ��0��+����'

��,�#�� ��--�$� �-��1���������"�/ ��� �*�� �����(����� % excess

oxygen �-�������� 2.05 3$� ����#+�����*��+� �����#$

197,123 KWH "��%_ �������(��(%_ 2552

• ���+�����1=����+� ����� Flare (Flare Loss Management)

0������������ �X�3�*�/���+� ����-+��������)+�"!+��� ,��-�+1����

�����(�����)+�",� 0� ��0��+����' ��,�#�� ��-��� 3$� ����#

+�����1=����+� �� ���#$ 92,874 MMBTU "��%_

• ���+�%���8�����(�X�3�*�/���+� (Fuel Gas Import) ���9����

�����)+�"�+� ���*������(�����)+�",� 0� ��0��+����'

��,�#�� ��-��� ��� Maximize !+��������*��X�3�*�/���+� ���)+�"

As an excellent petrochemical business with social responsibility,

PTT Chem Group is determined to integrate energy efficiency

and conservation as one part of our business plan. Moreover,

energy efficiency and conservation can serve as an effective

way to reduce carbon dioxide (CO2) and greenhouse gas

emission as well.

����������3�����<����5�������PTT Chem Group sets a high priority on energy efficiency

maximization, which includes high efficient equipment and

preventive maintenance to ensure availability. Moreover,

we support research and adoption of energy management

in line with international standards, while promoting energy

saving awareness for all its employees.

Currently, primary energy sources consist of natural gas, by-

product gas or tail gas and fuel oil, while electricity and

steam are received as secondary sources. In 2010, our key

achievements in energy conservation are highlighted as

follows:

�66�������������5• Control Key Energy Variables (KEV) in Olefins production

at I-1 olefins plant, such as control % excess oxygen

to be less than 2.05, resulted in energy reduction of

197,123 KWH per year.

• Flare Loss Management in Olefins production at I-4 plant

can reduce energy loss up to 92,874 MMBTU per year.

• In-process gas management in olefins process at I-4 plant,

resulted in fuel gas import reduction of 7,656 MMBTU per year.

• Improvement was made thermal efficiency of cracking furnace

in I-4 olefins plant, which resulted in reduction of energy

consumption for 53,133 MMBTU per year.

ÃÒ§ҹ¡ÒþѲ¹ÒÍ‹ҧÂÑè§Â×¹ »‚ 2553ºÃÔÉÑ· »�·. à¤ÁÔ¤ÍÅ ¨Ó¡Ñ´ (ÁËÒª¹)49

Page 59: PTTCH: Sustainability Report 2010

���������(�����)+�"!������*��*�/���+� ������,�����(��>��

%"�. ����� (-�*�) 3$� ����#+�����1=����+� �����#$

7,656 MMBTU "��%_

• �������%�������9��������*� ������� (Thermal Efficiency)

,� �"�!"�0�+��+ (Cracking Furnace) ,� 0� ��0��+����'

��,�#�� ��-��� 3$ � ����#+�����*��+� �����#$ 53,133

MMBTU "��%_

• +�����1=������/���� Steam trap 0�������������"�����(

!+�3���%+��� Steam Trap ������� ����%&�������������"�������

���%_ 2552 3$� ����#+�����*��+� ����� 149,938 MMBTU "��%_

• ���+�����*��+� ������((-�-+����� (Cooling Tower)

0�����%+����(���,� ���+��(�������� (Cooling Fan)

�%&�*���%��-���+� �� 0�����#+�����*��+� �����{�

����%&������ 207,090 kWh "��%_

• Steam trap survey program has been conducted since 2009

to reduce steam loss for 149,938 MMBTU per year.

• The change of cooling fan in cooling tower resulted in

electricity reduction of 207,090 kWh per year.

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

51.72 39.95 37.98 53.09� �^Z>?��� �

Energy Consumption Rate[GJ/ton olefins]

20092007 2008 2010

6���������������,�)����� �!"-����6���-���\U��+ ��;�� .�-���"� ��� .�-�!"

��������573����������@����<��@+��26��5�!2���5

Sustainability Report 2010PTT Chemical Public Company Limited 50

Page 60: PTTCH: Sustainability Report 2010

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����%+���!%+ ,� �9��91�����20+� �������� �������%+��

�X�3���������� �$ �� ���!+��-��������="��!���� �����+�

�������������-������X�3���������� ��/ �������,$/�0�"� ������

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(�����2

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��������%+���!%+ �9��91�����2� ���� )+����("�����

������ ��,� �+��(��>�� %"�. �����+ ��� ����"�����������

�� !)������������%{� ���)+����(����������,$/����������" �$ ���

���������%��(%�� ����*��+� ��3$� �%&�!-+� ����������X�3����������

-+���-��%�������9���1 ������ "������� �*�� ���+���������/ ,�

��� Decoke ���+�����*��/����*�/���+� (Fuel Oil) 3$� �%&��*�/���+�

�������-������X�3���������� ��������(�=*��X�3���������� (Green

house Gas Inventory) "+�����"��������������%�����

������� !+�0�������������������%+���!%+ �9��91�����2

�������� )+����("��� �'��

�+��(��>�� %"�. �����+ �����������������(�=*��X�3����������

(Greenhouse Gas Inventory) "� PTT Greenhouse Gas Accounting

and Reporting Standard 3$ � ��� �� "� IPCC 2006 (U.N.

Intergovernmental Panel on Climate Change) !+� ISO 14064

-1:2006 0�������������!+����������0� ��0��+����' ��,�#��

��--�$� !+� ��-��� 9���%_ 2011 !+�-+� �����/������������

�����(���#1�"�� 0�%_ 2011 ���!)�������������(�+����

0� �����+��(��>�� %"�. �����+ 9���%_ 2011 "+������-��

��������(���#1�"�� 0�-��� ��9���%_������� ��%_ 2012

����������������(���#1�"�� 0�-��� ��9���� ������/

,������(�� "���((�"�J�����+ -��� ISO 14064-1:2006

��������/ �+��(��>�� %"�. �����+ � ���,�)+����������%�

�X�3��������������������������,� � �'����������%&�)+"������� ���

��������� ��,� ������ (Scope 3 �*�� ��������� �#�"' ������ (��

�%&�"�� !"��������{� ������� -������/� 0����%+�%+��

�X�3������������������/��%_ 2009 �%&� 929.99 ���'(��������3�'

���(���� (ton CO2 eq)

PTT Chem Group realizes the importance of greenhouse gas

emission that causes climate change, the global issue. It is

determined to reduce greenhouse gas from its main operations,

such as energy utilization and study other approaches.

The group has evaluated risks for its activities due to climate

change, the result has revealed no significant impact from

climate change to its business. However, to prevent the impact

in the future, it has continuously strived to improve energy usage;

the main cause of greenhouse gas from our types of business,

such as decoke time and fuel oil use reduction, conduct

greenhouse gas inventory and prepare the assessment of

climate change risks and opportunities for the group business

in long term.

PTT Chem Group adopts PTT Greenhouse Gas Accounting

and Reporting Standard, which is aligned with IPCC 2006 (U.N.

Intergovernmental Panel on Climate Change) and ISO 14064

-1:2006 to report Greenhouse Gas Inventory at Olefins plants,

I -1 and I -4. PTT Chem Group aims to expand the scope

of greenhouse gas inventory to all plants in 2011. Moreover,

it plans to have verification conducted by internal and external

party in 2011 and 2012, respectively, and obtain certification

to international standard ISO 14064-1:2006. In addition, PTT

Chem Group has expanded the scope of GHG management

to cover scope 3 GHG emissions from indirect energy use

(e.g. transportation via vehicles and plane however, excluding

indirect emission from imported energy). These relevant indirect

greenhouse Gas emissions in 2009 is 929.99 ton CO2 eq.

]3��$�����#���75�#�5

ÃÒ§ҹ¡ÒþѲ¹ÒÍ‹ҧÂÑè§Â×¹ »‚ 2553ºÃÔÉÑ· »�·. à¤ÁÔ¤ÍÅ ¨Ó¡Ñ´ (ÁËÒª¹)51

Page 61: PTTCH: Sustainability Report 2010

0�%���8���%+���X�3�������������%+������1�*�/�(�����2

���0� ��0��+����' ��,�#�� ��--�$� !+� ��-��� !�� �1���"���

"���%��/

GHG emission from I-1, I-4 olefins plant is shown in table below

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

�������6��������������'���#]3��$�����

��:2��6�#"#��3�55���

-����'�/'[�)$"���'����]3��$�����

�����������(����89�����)+�"���+�)+����("����� !��+��!+��

�+��(��>�� %"�. �����+ � �+� �-��#$ �������="��!���� ��

���+����%+���X�3����������������%+1�%}� 3$� ����-�������%&�

%5�������="�������� *���",� ��� �*���"���*��� !-+� )+�"!+����(���

�/����*�"�!+�� "����� *���1�3�(�X�3 �� ��/� �+��(��>�� %"�.

�����+ �$ ���������0�� ���%+1�%}������+�%���8�X�3����������

9������~ 0� ��,� ���

�6�5���������G��5����25���3�23��<�����7��2�����<7������75���5Not only pollution prevention from production process, but

reforestation is also necessary. Forest can reduce greenhouse

gas, reserve water and absorb air emissions. Hence, PTT

Chem Group is committed to reforest in all operation areas.

� ����+�� \��:�������GHG Emission

(t-CO2 eq/ton Olefins)

I-1

0.990t-CO2eq/ton

0.206t-CO2eq/ton

I-4

0.928t-CO2eq/ton

0.271t-CO2eq/ton

0.996t-CO2eq/ton

0.170t-CO2eq/ton

25512008

25522009

25532010

25512008

25522009

25532010

Sustainability Report 2010PTT Chemical Public Company Limited 52

Page 62: PTTCH: Sustainability Report 2010

]3��!#

�+��(��>�� %"�. �����+ �����*��+� �����)+�"����X�3���*�"�

�%&������-=� 3$� �����������-����%+���X�3���'(��������3�'

(CO2) ����1�(�����2�%���8+�+ !+�� (�������(��(����*�

�*� /���+� ����/����"�) � �� )+"�����+����%+�%+���X�3

3�+����'������3�' (SOx) ��0"��������3�' (NOx) !+�4�}�������

��������/� ������������%��(%�� �����+�%���8���%+�� ��0"����

����3�' (NOx) ������(�����)+�" 0����"��"�/ -���)�%�������

9���1 (Ultra Low NOx Burner) ����� 3 �"� 3$� *��+����%+��

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

����-���������+����%+���X�3���'(��������3�' (CO2) �X�3

3�+����'������3�' (SOx) ��0"��������3�' (NOx) !+�4�}�����1�

(�����2!+�� �+��(��>�� %"�. �����+ � �-��������=��(

�����(��!+�+����%+�����������'���- �� (VOC) 0���(��

�-�%���8���%+����(����������'���- �������/����%:�(�"� ��

�1�������(�������������"�J�� �����%��8'����������� �����(��

������%����(������'���- �� "+�������((���"���������

����3$ ���"�����(������ ����!+���%��8' 3$� �����������������

�%&�%����"+��������/ �+��(��>�� %"�. �����+ 0��+��(��>��

%"�. �����+ �����������������(�=*����������'���- �� (VOC

Inventory) "� PTT VOC Inventory Standard 0�������������

!+����������0� ��0��+����' ��,�#�� ��--�$� !+� ��,�#�� ��-���

!+��!)����������"�����������"����������,���+� ���)+�"

��������/ ��%_ 2553 ���)���� � ������������%��(%�� �����+�%���8

���%+�����������'���- �� (VOC) 0�������!)� ��������(��

���)+�"0��+����'�� "���%��/

• "��"�/ "1��1���������- (Hood) ���(%��%5�����*�<����� Dimethyl

disulfide (DMDS) 3$� *��+����%+�����������'���- ��

• "��"� / -+� ��0� (Dome Roof) ��-��((����(���/����

(Equalization Tank) �����,����(((�(���/������ *��9��"���%

• "��"�/ �+�� �����!((�*�#��� (Carbon Canister) (����8(�����

,� �����(��/�������%��%���������0�����'(�� 3$� *��+�

���%+�����������'���- ���-��-�+�+ �%&���� ��

��/ ��/� �����"������������4{����� ���%��%����,� ���������'���- ��

(VOC) �����!+��/��"���� 0����"������ VOC �/��"�������~

3 ����� 3$� )+���"���������( VOC ���/��"����!"���� ��

����3�55���5The majority of our energy consumption comes from natural gas,

which has low level carbon dioxide (CO2) emission in comparison

to the use of fuel oil. Thus, this has resulted in reduction of Sulfur

Dioxide (SOx) Nitrogen Oxide (NOx) and particulate matters

emissions. Additionally, PTT Chem Group has continuously

determined to improve our production process by installing 3

ultra low NOx burners resulting in 9.78 ton of NOx emission

reduction.

PTT Chem Group also pays attention in managing volatile

organic compound (VOC) better than regulation standards

by inspections of site area, equipment and machines and

periodic monitoring for any leakage of VOCS for further

improvement and reparation. PTT Chem Group adopts PTT

VOC Inventory Standard which is in line with international

standards (USEPA) to establish VOC Inventory at Olefins plants,

I -1 and I -4. PTT Chem group plans to expand its VOC

Inventory to cover all plants by 2011.

In 2010, VOC improvement projects were conducted in olefins

plants as illustrated:

• Hood installation at Dimethyl Disulfide (DMDS) pumps.

• Dome roof installation at equalization tank.

• Carbon canister installation at the sumps of Hydrocarbon

contaminated water drains.

To monitor VOC contamination in soil and ground water,

the group conducts VOC measurement in ground water

quarterly and found nothing abnormal.

]3��!# ��������!#����3�55���5���<���5�

ÃÒ§ҹ¡ÒþѲ¹ÒÍ‹ҧÂÑè§Â×¹ »‚ 2553ºÃÔÉÑ· »μ·. à¤ÁÔ¤ÍÅ ¨Ó¡Ñ´ (ÁËÒª¹)53

Page 63: PTTCH: Sustainability Report 2010

�����#,� �-�-3�

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

��+�*�/�0�03� 3$� �����-=����%&��������*�����((��(��+� !+���((

�������� ��-��(��((��(��+� �� �+��(��>�� %"�. �����+

��������+����*���� FM-200 3$� �%&�������������-����������+�*�/�

0�03� ��������((�������������,�#������+��(����8������(����|

����+����*���� R-22 3$� �%&�����������-����������+�*�/�0�03����

0����"������*���� R-22 +�+ ���%_ 3$� ���%��(%�� ��%��8'!+�

��+'�"�� ~ �-��%�������9���1 ������ "������� �����+���������-+ !+�

�%&����*��+����%+�������+�*�/�0�03����%+������1�(�����2

������

�����!#

��������+�!+�%{� ���)+����("����� !��+������������,$/�������

(��-�����������,� ���������(�����)+�" �+��(��>�� %"�.

�����+ �$ $�#��������������"���-��%&��"�J��,�/�"��

�����(��-��������,� ��� 0����)���� �������������������

���,� ���,� �+��(��>�� 0����%45 �+("�-+����,�9�(�+ -���

����%��(��#��,� ������"�����������45 �+( !((%+��9�

�����/ ����)������ ������!�%���9�������� �%�*�3/�9����

(Reuse/Recycle) ������%�*��%&���"#���(-����*�/���+� ��!��/

�*�/���+� )� ��#$ ����*�3/�!+�������+�(��*��-�9���(��>��

��/ ��/���,� ����������,$/���/ -���#1��� �%�������������������%&�

�"�"����� !��+�� 0�(��>�������,� �����������(���=�"#1�"��

"���-� 3$� %���8,� ������"����������"��-������)+�"

�%���8+�+ �����~ "�/ !"�%_ 2550 �%&�"���

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

�������(��������� Oil sludge ,� -���0��+����' ��,�#��

��--�$� "��"��)+�"9�8Z' !+�������� Bio + Oil sludge ,� -���

0��+����' ��,�#�� ��-��� "��"��)+�"9�8Z'

�4���-�2������7:5����5 PTT Chem Group foresees the impact from the use of Ozone

Depleting Substances (ODS), which are mostly used in fire

extinguishers and refrigeration system. Our plants use FM-200

as substitutes for ODS. For our jetty, where there is the largest

use of cooling system for ethylene transferring, we use R-22

refrigerants. In addition, we implement periodic inspections of

equipment and valves for further improvement and reparation

prevent any leakage ODS emission.

��5�To reduce and prevent the environmental impact, PTT Chem

Group adopts legal compliance as minimum requirements in

waste management. PTT Chem Group practices waste

management with proper approaches; such as, sanitary landfill

or secure landfill with waste stabilization, incineration, reusing

and recycling; managed by licensed waste disposal vendors.

Moreover, our specific waste generation per production unit

has continuously declined since 2007.

In addition, PTT Chem Group has defined targets to control

specific wastes from our plants as follows: specific Oil sludge

(Olefins Plant I-1) per ton Olefins Plant I-1 and Specific Bio + Oil

sludge (Olefins Plant I-4) per ton Olefins Plant I-4.

2008

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

0.0150

2009

0.0127

2010

0.0037

Sustainability Report 2010PTT Chemical Public Company Limited 54

Page 64: PTTCH: Sustainability Report 2010

���� Sludge �!" -����6���-���\U��+ ��;�� .�-���"� ��� .�-�!"

�27<��#�����������@����<��@+��26��5�!2���5

�������� ���!+���� �������+�)+����("����� !��+���������

���,� ��� �+��(��>�� %"�. �����+ �$ �����-���%{�-����

���������+�%���8���,� ������%45 �+(���%&�21�' (Zero

Waste to Landfill) 9���%_ 2558 !+�������-����(��-��������

���,� ���(��+��%{�-��� �+��� �$ �������!"� "�/ �8�������

���������,� �����"��-��� �+��(��>�� %"�. �����+ (PTTCH

Group-Waste Management Committee) 3$� ��� ������

)1��������-=� �� ������%�������9��%:�(�"�����%&�%����� !+�

�� ������)1�������,� !"�+��+�������� ����/ )1�(��-��,�

-��� ����������,�� �%&��8�������

For our overall waste management, PTT Chem Group is

committed to the target of “Zero-waste to Landfill” by 2015.

To achieve the target, waste management committee; having

value chains’ Executive Vice Presidents as attendees and the

Executive Vice President of Operational Excellence as a chairman,

have been appointed to govern implementation and track

performance.

I-1

I-4

� ����� SludgeSludge Generation(kg/ton Olefins) 2008 2009 2010

2008 2009 2010

5.58 1.05 0.59

0.21 0.27 0.43

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Page 65: PTTCH: Sustainability Report 2010

�)�*�6���<��^+

�������� �����7��)+�"9�8Z'���������2��9�������!,� ,��

�� ���"+��!+��2�>J���,� %����2 0�"��-����������=

,� )+����("��"����� !��+��!+�)1��*� -��� �����"���!+�

���0�0+�,� %"�. �����+ �$ ���%����� ����(!"�+��+��������

�������7��)+�"9�8Z'����%&��"�"����� !��+��!+�)1�(��09� 0�

9��� 5-10 %_,�� -��� %"�. �����+"�/ �%{��%&�)1��������)+�"

)+�"9�8Z'�%&��"���(��� !��+�� (GREEN PRODUCT) ,� 0+�

%5���(�� �+��(��>�� %"�. �����+ �����7�����)+�")+�"9�8Z'

0�+�0���� 3$� �*���"#���(-+��������*�"� ���� �/���%�+' �/���

���+��%�+' �/�����* !+��,����"�' ��-��()+�"���+����"��'

(Methyl Ester) 3$� �*���-��()+�"�/������3+*��9�� -����(0����3+

(Biodiesel) !�""�/!�+����+' (Fatty Alcohol) !+��+��3���� (Glycerin)

��������/!+�� �+��(��>�� %"�. �����+ � �� ������7�����9�8Z'

�����-� (Renewable Chemical) �� ��������� ��,� �� �!+�

��� !��+�� 0��+��(��>�� %"�. �����+ ����%��21�'���"���!+�

���0�0+� 3$� �%&�21�'����!+���7������%�0"����!+����9�8Z',���

�-=�!-� !��,� %����2�� ����-��������=��(�����7�����"���

!((�%�� (Open Innovation) 0��������(�����"����%����(

�%��� ����� ����7������2��"�'!+����0�0+�!-� *�"� (���*.)

-�����+�!��{�-+� ����+�%�0"��+�!+�%�0"���� ����+ ��8'

-�����+� !+�-�����+�-��+ ��������� ��������!+�

���/�%��0*�'3$� ���!+�������1%!((,� �����,�������"� ��������

���� ����'���"�������/ "�������"�������2��9���1����)+�"

���*� ��8�*'

-�$� ��0�� �������+��(��>�� %"�. �����+ �����������������(

����� ����7������2��"�'!+����0�0+�!-� *�"� (���*.) ���

0�� ���������+��-��� (Micro-Algae) 3$� �����2$�>���7��

"�/ !"�����("���/� �������+�/ ��+��-����-����%�������9���1 ���

0������7����((����+� / �� / ��! �,� ����2��"�'*��9��

!+���2���� ���%#$ !���� ��������'(��������3�' -��� CO2

��*��-������������ "+���������7������(%+��/� �*�� �������

�/���!+��������="�� ~ �����+��-��� !+�������������

,� ��-����-�����%��0*�'�1 ��� �%&�"��

!�<7���-�2��3��PTT Chem Group is committed and devoted in keeping

pace with the innovation for environment and user to line with

the market trend. Therefore, Science and Innovation Centre

(S&IC), has collaborated with each value center to research

and develop environment and user friendly products.

PTT Chem Group aims to be the global leading in green

products in next 5-10 year.

Currently, the PTT Chem Group has business dedicated to

oleochemicals or natural chemical products, which are produced

from natural materials like palm oil, palm kernel oil, vegetable

oil and animal fat. The products include methyl ester, used in

Biodiesel production, fatty alcohol and glycerin. Moreover,

PTT Chem Group has opened its own S&IC, Thailand’s

first petrochemical and chemical research and development

centre to develop renewable chemicals that contributes to

social and environmental sustainability. PTT Chem Group also

realizes the importance of development the open innovation

by collaborating with academic alliance like National Science

and Technology Development Agency (NSTDA), Mae Fah

Luang University, the Petroleum and Petrochemical College

Chulalongkorn University and Mahidol University.

Micro-Algae project, one of its collaborated research projects

with NSTDA, is studied from upstream to downstream phase.

Upstream phase consists of micro-algae culture system

development with biological science and engineering

approaches including highest Carbon Dioxide use in

Photosynthesis, while downstream phase is to develop

micro-algae utilization, such as oil and essential substances

extraction and other use from its residue.

�)�*�6���<��^+�!"�'4����������"�����������@)��<2��!�<7���-�2��3��

Sustainability Report 2010PTT Chemical Public Company Limited 56

Page 66: PTTCH: Sustainability Report 2010

��������/ �+��(��>�� %"�. �����+ � ����� !)����,�������

�-�"�(��� ���"�� ���)1�(��09� ������)+�"�+��"��*��9��

0������((��>�� %"�. ������,��������!+������2$�>������(

(��>��*�/�����"�� %����2�������0�0+���������!+��%&��%"�

�"�J�����+ �����)+�"0�+�!+�"��!�3�� -��� Polylactic Acid

(PLA) !+�0�+�(����+��3��3���" -��� Polybutylene Succinate (PBS)

3$� �%&�0�+����'��-��()+�"����+��"��*��9�� 0�)+�"�����"#���(

�����>"� �*�� �/�"�+ !%{ ,���0�� !+�����%�-+� 3$� -+� ���

�����������"�� %����2!+�� �+��(��>�� %"�. �����+ �� !)�

����������0�0+��� �+���������������%����2�� 3$� ������

������#��������������%_ 2557

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

� �-��������=��(�����7��)+�"9�8Z'�����1�!+�������������

�-�(������-��%&��"�"����� !��+��!+�)1��*�"��"�J�����+ 0�

��%_���)���� �����7����89��,� 0�+�����+�����-��!����1 (HDPE)

0�+�����+�����-��!���"�� (LDPE) ��������*����+����-��()+�"

(����9�8Z' �*�� 4�,��!+�#� ��#$ ����+��( !+�0�+�����+��

���-��!���"���*� ���� (LLDPE) -��� )+�"9�8Z' InnoPlus LLDPE

�-����8�(�"�)���"��"�J��,� 0�+�����+������*���-��(��)��

��-��3$ � �%&�,����-�����#1���(��0�� �'�����-��!+��

�-��J������ (U.S. FDA) ��������/ � ���8�(�"�)���"�,����-��

,� �"�J�� RoHS (Restriction of Hazardous Substances) 3$� �%&�

�"�J���������(�����-��%���8������"��������=�"�-���1�

������+�����������+���������' �������#��(�������%&������(%�����

��89�������� �����)+�"9�8Z'�-+���� /����%+��9�"��)1 ��*�

!+����*����������"�������)+�"����%&��"�"����� !��+��

��/ ��/� �����-��!)� ����������%�������:����*���" (Life Cycle

Assessment) ��-��()+�"9�8Z'0�+�����+�����-��!����1 (HDPE)

!+����������"�,����-��!��%:�(�"�������������� ��-��(

,����-��!��%:�(�"����������������������1!+)+�"9�8Z' (Code

of Management of Practices: Product Stewardship) ,�

Responsible Care 9���%_-���

In order to satisfy consumers requirements on bioplastics, PTT

Chem Group and PTT plan to form a joint venture with

reputable oversea company to study the production of

Polylactic Acid (PLA) and Polybutylene Succinate (PBS),

bioplastic polymers from sugarcane, corn flour and tapioca.

This bioplastics technology is expected to start running in

Thailand in 2014.

PTT Chem Group also has a mission to adopt and apply

internationally reputable standards in developing the existing

products to be friendly to environment and users. In 2010,

High Density Polyethylene (HDPE) and Low Density Polyethylene

(LDPE) resins for package grade and Linear Low Density

Polyethylene (LLDPE) or InnoPlus LLDPE resins have achieved

compliance with 2 international quality standards. The first

one is the Food and Drug Administration (FDA) specifications

according to U.S. FDA 21 Code, which allows for Polyethylene

unmodified used in articles that contact food. The other one is

RoHS (Restriction of Hazardous Substances). This to ensure that

our products are safe and suitable to be used as the food

contact article as well as produced with no hazardous

substance in process.

In line with PTT Chem Group CSR Framework, we are

developing Product Stewardship Process inline with Responsible

Care-Product Stewardship Code of Management Practices

which social and environmental consideration will be considered

throughout the product lifecycle. Thus, PTT Chem Group plans

to conduct life cycle assessment for High Density Polyethylene

(HDPE) and code of management compliance for product

stewardship practice from Responsible Care in 2011.

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��������>�!+���7����89��,� )+�"9�8Z'!+�(�����������(����

����-��� ���������"�(0"�� ��������������(+1����

���~ %_ �+��(��>�� %"�. �����+ ���������������������$ ����

,� +1���� �����"��"�������-�� ���"�� ��� !+���� ���+1����

�-��������= 3$� �����8��������$ ��������89�� %���8 !+�

����,� )+�"9�8Z' ����-�(����� �������� ������ ���(�����,�

���� ��,� ���(��������������� �����(-���� �� ���������

,����� ���� "+�������(�����-+� ���,� ��������/ ��������-��

���� �� ������*�!+�������(,��1+�-��-�����(�+��,� +1����

�*�� )������"��"� (Observe), �����9�>8'��(���+ (Personal

Interview), �����9�>8'�+�� (Focus Group), �����(#�0�

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

����-���!+�)�������-��*�(����8��� ��(��-��������

����+1����

0���%_ 2553 )+������������$ ����,� +1���� (Customer

Satisfaction Index) ,� !"�+��+���������(����%&��%"��%{�-�

��� 80% 0����+������� ��/�/

�75��3�����56������PTT Chem Group is aware of importance of confidentiality

and satisfaction of product and service provided to customers.

Therefore, we commit to sustain and develop product and

service quality within acceptable price to make business

growth with our customers.

Customers’ satisfaction is conducted annually to follow-up

expectation and determination to maintaining and developing

our product and service is critical to growth. To improve

customer satisfaction, we measure vital aspects of Product

Quality, Quantity correctness, Pricing, Service, Shipment,

Sales staff service level, Quality of documentation and service

provided, Payment process, Complaint handling and After-sales

service. Mechanisms to measure satisfactions are through

observation, Direct Interviews, Focus Groups, and Survey Forms.

In 2010, the PTT Chem Group sets customer satisfaction index

by each business line at 80% target, results are shown in the

table below:

Sustainability Report 2010PTT Chemical Public Company Limited 58

Page 68: PTTCH: Sustainability Report 2010

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*������ � �'�� !+�����$ ��������������� ������"�� ~ 0�

)+������������(������(,� �+��+1��������"��9��+��>8'!+�

*������ � �'�� ��� 83.9% 3$� �1 �����%{�-����"�/ ������ 80%

����������7����� "������� �+��(��>�� %"�. �����+ �� ��������

��7����89��!+����-+��-+�������-�(�����������0�0+�

��������!+��%�������9�� �*�� ����������(( B2B E-Ordering

!+� E-Payment �%&�"��

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

�*�� ��. 816-2538, U.S. FDA 21 CFR 177.1520, RoHS Directive

2002/95/EC �%&�"�� ������-���������)+�"9�8Z'���"��,� ��� ����

�-�,��1+,� )+�"9�8Z'3$� ���(�+�#$ ����%����(!+����%+��9�

�������+�� ��(��-�-����"�J�����+ �*�� ����������)���

Material Safety Data Sheet (MSDS) !+�����-�,��1+�������(

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

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

����������/��#�$%'!?�����'

Polymers ProductsValue Center

����������/��#�$%'����"����@\�'

EO-Based PerformanceProducts Value Center

����������/��#�$%'!�"!����"

OleochemicalProducts Value Center

87 %90 %

83 %92 %

On top of the above measurements, PTT Chem Group

measured satisfaction in areas of corporate image, brand

recognition and other satisfactions with 83.9% satisfied

beyond the 80% target set.

Continuous improvement in using technology is an integral

part of PTT Chem Group projects, such as B2B E-Ordering and

E-Payment are among beyond-standard initiatives.

To ensure that all of our products subject to information

requirement are in line with regulatory requirements and

international standards, we adopt various standards including

Thai Industrial Standard 816-2538, U.S. FDA 21 CFR 177.1520,

RoHS Directive 2002/95/EC, etc. Examples product labeling

and communication include Material Safety Data Sheet (MSDS),

which apply for all of our chemical products in markets; and

communication via our website. Examples of information

provided include product contents, safety and disposal.

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�����()��"��������-��������,$/���������������%+��9� "+����

��� ��������-�����1��������"��� !+������+���'���������������

��-��,�� “�����"����������"�(0"��� �� ��” (Partnership-Our Drive

to Sustainable Growth) �-���(�+��+1����-+��,� (��>�� ��������/�

%��0*�'�1 ����-���(+1���������������������

��%_ 2553 ���)���� ������������,� (��>�� %"�. �����+���(

���������������������+�� ��(��-�-���,����-�� �������

��()��"��������-��������,$/��������*������������%+��9� -������

�-�,��1+)+�"9�8Z'!+�<+�����)���������%&���� "+����

��������� ���������"+�� ���������� !+����0�>8����,��!�

��(��-�,� %����2�� ��#$ ���,����� �������+����,��1+

����"��,� +1����

Moreover, the PTT Chem Group has developed online systems,

which provide product traceability and safety information

according to Product Liability Act. “Partnership-Our Drive

to Sustainable Growth” is one of the group’s key events to

share innovation and business strategies to business partners

for mutual benefits.

In 2010, PTT Chemical was clear of penalty or fine due to violation

of laws and regulations concerning responsibilities for damages

caused by use of unsafe products and overstatement of product

quality. The group’s marketing, communication or advertising

did not encounter any Thai laws violation. Complaints about

abuse of customer’s confidential information were none.

Sustainability Report 2010PTT Chemical Public Company Limited 60

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������ ���. ������ ����� (� Z�) �������������?:K��� ���W���`^����< �������" ��W����'��

��������������"�� ����/��Z�����<���� +����� �����������?�[� �+� �+�K�+:� ������K�^�� ����� �

?��� �!�+]:�� ��������'?��� ���W�<�����K����� �������� ����������� ��������!+� +�������'

?��� �����"_

At PTT Chemical Public Company Limited, we strive for chemical industry excellence, organization

of innovation and responsible company under the principles of continuous improvement and

sustainable development. Therefore, we commit to energy management through integration of

energy conservation into our business process as follows:

1. � ��������'?��� ���W��> �"K�� ����/��Z�����/J>��� ���/J>�������� ���������

All levels of management and employees are responsible for energy conservation

2. ������� � +� ��������'?��� �^>�� �<����� �^Z>?��� �

Energy conservation targets is structured in accordance with energy application

3. �������� ���� +�"K��"K+��>������ ��������'��� ����� �?��� �

Energy conservation and management regulatory is follow

4. �����������<����# ?� �^Z>?��� ��+� ������:K��

Continuous improvement in energy efficiency

5. ���<�����?+ ����_���� ���������� $^>�?"+�?��+� ��"���<����# ?

Manage sufficiently and efficiently for both human resource and budget

��_��"_ ������ ���. ������ ����� (� Z�) ��������� ����� �?��� � !�+^>?���� ��"<�������^�� �

������� �^>��W�@�� ��!+� + ��<:K�< �^>/J>��"K+��>���� ��+� ���K�]��

PTT Chemical Public Company Limited shall manage energy through employee involvement in

archiving the target and communicate the result to all relevant parties.

��������5�������!�2����-#&#�����1+)�����

Effective on 2 July 2010

(Mr. Veerasak Kositpaisal)

President & CEO

<�K� $ ����"K 2 ���� �� 2553

(� +�"�`����� !�<���@?` )

����� �/J>���� �^��

Effective on 2 July 2010

Sustainability Report 2010PTT Chemical Public Company Limited 62

Page 72: PTTCH: Sustainability Report 2010
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�������-��������=������� ,� ���%+��9������(�����)+�"

���"��-����������%+��9� ���4���(� ���������� ���������

���"�����( ��((����� ����(�"��-"� ��#$ ����������-'���-"�

!+������(�����(�"��-"�������� �������%+��9����#������� ��

��/ ��/ ����-��������="�����+��#�"���"�����(�����(/���(%}�

�������� ��,� )1�%:�(�"� �� (Incident Rate -��� IR: Total

recordable cases of non-fatal occupational injuries and illness)

3$ � ������������������(�� !+�%{� �������������(�����(

-������(%}��������� �� 0���-���%&��%{�-���������������

-+� %_ 2554 �%&�"�� ��/ ��/����� �+����*����)+��������� ������

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���������=��������(����������� �� �����-�)1�%:�(�"� ����������

!+���()��*�(����������� ���-�(��+�"��%{�-� !+����"��"�)+

��������� ��������*������!+����%+��9� ���������(���

(Management Review) !+�%��(%�� �-����������7����� "�������

����������� ���� �������%:�(�"�"���-���������,�� ����

��*������!+����%+��9��%&��"�J��,�/�"������������� ��

��������/� ��!��%:�(�"�����%&��+�2 (Best Practice) !+��"��������

��*������!+����%+��9�����%&��"�J�����+ ���7�����

������ ��������*������!+����%+��9�,� �+��(��>�� %"�.

�����+ �-��%�������9��!+��� ����%�������)+�����������*������

!+����%+��9�������� �� 3$� ���)���� �+��(��>�� %"�. �����+

�������������������*������!+����%+��9��������=�� ��/

PTT Chem Group holds the highest standards towards its

employee’s health and safety. This commitment also expands

to cover our communities where we operate and the contractors

working on behalf of PTT Chem Group. This year, PTT Chem

Group is pleased to announce the winning of a prestigious

award of best company in health and safety by the Ministry

of Labour for the 13th consecutive year.

PTT Chem Group is committed to risk management and

controlling loss from accidents, occupational health and

workplace management, while promoting our staffs to have

healthy l i fe and happy workplace. PTT Chem Group

emphasizes on process safety through personal awareness,

training, communication and root-cause analysis to promote

safety in workplace. PTT Chem Group seeks to reduce the Incident

Rate (IR): Total recordable cases of non-fatal occupational

injuries and illness, by focusing on improving the control and

preventing occupational injury and illness. Thus corporate-wide

IR reduction target will be set in 2011 to monitor and evaluate

the group’s overall performance in safety area.

Management of occupational health and safety rests with

our top management. Management supports health and

safety programs with resources and promotes staff involvement

in order to achieve and align the group’s goals continuously.

Monitoring of Group’s occupational health and safety

performance is implemented via management review induce

continuous improvement.

Legal requirements are minimum requirements to practicing

health and safety at PTT Chem Group. PTT Chem Group adopts

best practice and international health and safety standards

to improve our performance in health and safety management.

Highlights in our health and safety management are illustrated

as follows:

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�-���������������������������%+��9� 0���������((

���������������*������!+����%+��9� (OHSAS/TIS 18001)

��*�!+���7����((���(��-�� ������ "������� 3$� !)� ��

�������������%+��9�,� (��>��| ����,$/������������� ��

9��"���((���������������*������!+����%+��9� (OHSAS

/TIS 18001) 3$� ���(�+���/ ���%������������ ������� �� �����

�%�1�!)� ���������%+��9������+�-�����(��������� �-��1�

������(������(��� ���"��"�!+�%�����)+���%:�(�"� ��0�

����� Management Review ,� )1�(��-�� ������-��������%��(%��

!+���7����� "�������

��6�������7�������2�"�2������<�������3���8�"�9��33���SHE Committee has been appointed with the most senior

management or appointed representative chaired the

committee. The Committee members are from both management

representative (employer) and employee representatives,

which were kept not only to be legal complied, but also to

drive continuous improvement through health and safety

programs.

The Committee delegated responsibilities according to working

areas, which comprise of sub-committees in plants, Bangkok

offices and Rayong Offices. Specifically, operational- level

employee representative in all level of committees must not be less

than 40% of all members to help effectively monitor and gauge

any given program.

���7�������2�"�2�����<���6��������3�����5�3�8�"���C�����1���9PTT Chem Group adopts OHSAS/TIS 18001 in maintaining

our occupational health and safety management system

and delivering continual improvement in our performance.

Our action plans and safety activities are developed to

underpin occupational health and safety management

system in accordance with OHSAS/TIS 18001, which spans

from workplace risk assessment to action plans to, mitigate

or control risks to acceptable levels. Monitoring and

evaluating of performance is done through management

review to induce continuous improvement.

Sustainability Report 2010PTT Chemical Public Company Limited 66

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• � �<�> ���[������> ��� ����#�+

“Behaviour-Based Safety: BBS”

���"#�%��� �'�-����� �����"���$� -�� � !+����%:�(�"� ��

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���������(�"��-"���/� �$ ���������������������"��������(���+

-+����� BBS ��������� ��"�������%+��9��-���(���� ��

)1�%:�(�"� �� !+�,�)+�����%&���7�������%+��9�,$/���� �'��

0�����������4���(��-�����1���(���� ��9�����/���� ��������-�

��"�������� (At-Risk Behavior) �����/��$ �����-���%{�-�

!+��������������������"�������� ���������� !+����)+ ������/

�� �����-����� �����"����������� �����%+��9�

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��,�#�� ��--�$� !+���,�#�� ��-��� (��>�� (� ���0�+������+��

����� (-�*�) (��>�� ��0�3� ��+��+ ����� !+�(��>�� ������

0�+�����+�� ����� !+��!)�,���������� ���-����(�+�

���(��>�����+�� %"�. �����+ ��%_ 2554

• � ����� ��� ����#�+^�������� �/��

(Process Safety Management)

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����������,$/����������������)+�" 0�������"�J�����������

���%+��9������(�����)+�" (Process Safety Management)

��*������%{� ���)+����(������������(�"��-"�,�/����!� ������

���������)+�"������� )+����("��)1�%:�(�"� ��!+�"��*�*�,�� ���

��������/� �����7�������-��"��*�/���)+��������� ����/ ���*� ���

(Leading Indicator) !+��*� ��( (Lagging Indicator) ���������

%�������)+��������� ���������%+��9������(�����)+�"

!+�%{� �������1=�������������,$/��-������������ 3$� ��%_���)����

�����������2$�>�!���� �������-��"��*�/�������-������(��>��

(� ���0�+������+�� ����� 3$� �%&�0� ������� 3$� ��%_ 2554

�!)����,�)+�������������-����(�+����(��>�����+��

%"�. �����+

"���2����<�!�G��5���<���������5��2��<������6������5�)�22�?5=• Creating a Behaviour-Based Safety (BBS) culture

The purpose is to grow safety conscious of our employees and

foster safety as a part of organizational culture. We realize that

often the root cause of most accidents occurs from personal

behaviour, thus to prevent accident, it should start from personal

behaviour.

Training of employees to seek “At-Risk Behaviour” is the key to

BBS. At-Risk Behaviour serves as anchor to observation,

planning, methodology and measurement to eliminate and

reduce such risks where it can be embedded into an

organizational culture.

In 2010, this initiative has been implemented at PTT Chem

Group facilities at I -1 and I -4, Bangkok Polyethylene

Company, TOC Glycol Company and PTT Polyethylene

Company. It is expected to be implemented in all the

companies in PTT Chem Group in 2011.

• Process Safety Management

PTT Chem Group emphasizes loss prevention from production

process by introducing Process Safety Management to prevent

impact from serious accident from the production process,

which could have impact on employees and surrounding

communities.

Leading indicators and lagging indicators have been defined

to gauge and measure production safety effectiveness on

top of preventing unpredictable incidents. The past year,

suitable indicators were studied at Bangkok Polyethylene,

which is a pilot plant, when in 2011 the group plans to roll out

group-wide.

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Page 77: PTTCH: Sustainability Report 2010

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• �> �� ����� �<# ?���>��^�� ���� �

���%��(%�� �9��!��+��������� ��,� ���� ���-�����

%+��9� �%&�!���� -�$� �����������������*������,� ���

�$ �������"�������9��!��+��������� ��,� ��/����%:�(�"� ��

��/ ������,� !� ���� ������� ��� !+�����,�,��,� ������

�������)+������"��������������-' !+����%��7���9��!��+��

������� ��,� ���� ���-�����%+��9��1����

������������'���<�#����&6/���&���

)1���(�-�#���%&���+� ����=!+��%&�����-�$� �����������������,� �+��

(��>�� %"�. �����+ ����$ �-��������=!+���7�����(�����

�� �����������%+��9�!��)1���(�-� 0����������4���(�

�-�����1����%+��9�������� �� "+����"���%�����!+�

�-���!�����������7������� ��

��������/ ��%_ 2554 �!)���������0�� ��� Contractor Safety

Management �����%��(%�� ���(�����(��-�����������%+��9�

,� )1���(�-�!(((1�8���� ������-��������%+��9�������� ��

,� )1���(�-���������

�������� �������������� ��������*������ !+����%+��9�

������� �� �������-�����(�����2,� ����1!+��������!+������

9���� �'�� ������� �1�����%&�� �'��!-� ���%+��9�

"���2����<����7�������2�"�2���!2�����<���������5���)�22�?5=• Health Checkup

Every employee receives annual health checkup. Risk-based

annual health checkups are arranged for special risk groups,

such as staff working with chemicals. Thus, these checkups

require more sophisticated diagnosis for appropriate

monitoring of our employee health.

• Workplace Environment Management

Improving workplace environment is key as an occupational

health indication. We regularly conduct workplace environment

monitoring across different factors including light intensity,

heat, noise and chemical concentration. Monitoring results

are analyzed and factored in workplace environment

improvement programs.

!�3�����������������6��Contractors are an integral part in PTT Chem Group’s growth;

therefore, their safety, too, is sternly considered and supported.

Safety training, audit, and suggestion are key collaboration

to ensure similar level of safety to the group’s own practice.

In 2011, we plan to launch contractor safety management

program to improve holistic contractor safety management.

Increasing in contractor.

Together planning and implementations in regards to

occupational health and safety helps PTT Chem Group realizes

a new level of safety culture.

Sustainability Report 2010PTT Chemical Public Company Limited 68

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��/��)����������:����1#,��3�2����22:���

,�:�7������5���<�"73��������5Employee care is one of the most vital aspects PTT Chem Group

accentuates. Health, Well-being, and employee families are

cornerstones to the group’s success; this is stated lavishly from

being ranked “Top Employers of Choice” under Industrial

Products category through Thailand’s Top Graduates Employers

survey by Quality Profile co., ltd.

Beyond labour law and business etiquette, PTT Chem Group

practices ‘Code of Conduct’ through prevention of discrimination,

respect of human rights, fair compensation and remuneration,

promotion and transfer, reward and punishment, employee

interest club support, workplace environment management,

and unbiased suggestion and recommendation hearing from

all staff levels. The group does not support nor tolerate child and

forced labour as well as violation to any employee rights

to freedom of association.

To realize the group’s determination, labour rights and human

rights are entrenched in the PTT Chem Group CSR Framework.

To facilitate implementation, 3 units are assigned to be

responsible, which are Human resource policy and strategy

office which is responsible for governance and setting directions;

Human resource management and development office,

which role is for shared services and resource office in each

business unit. Welfare committee comprises of members,

who are employee representatives, with roles to monitor and

review employees’ quality of life, monitor safety of working

environment, and arrange suitable and essential welfare for

our employees and regularly review welfare arrangements to

match social, economic and obligatory changes.

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�������(�����������(�-��%&� ����� ���� �� Top Employers of

Choice ���+����"��-��� Industrial Products �����������

� �'��*� /���!+������ ����1 ����������,� �+���%{�-�

����((��+�������*�� (Thailand’s Top Graduates Employers)

,� (��>�� ���+�"�/ 0����+�' �����

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��-�!� ��!+�����(��8�������������/��������������,���%

������ �� 0���-���%&�!��%:�(�"� (Code of Conduct) 3$�

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�+��������"�� ~ ��������/ �����8����������������3$� %����(

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��#$ ��-�����~ ��������,�� ��� ���� ���� �$ ��������� !� ��

����-������(� ��(�*�!� �� "+�������%:�(�"����������������

!+�����������������+��,� ���� �� 0���%_���)���� ���(���

�,����� ��������� ������� ����%�������� �+���

����8��(�-�����4}�4��-�����%:�(�"�"�����(��8 ���� ��

����#�� ���%� )1�(� ��((�=*� -���-��� ������(� �'��!+�

�+,������(��>�����0�"� !+���������-���0(������ �������>*�

����������� �1�������������

��%_�� �)������������-���%{�-�������������������� ��

�-��%&��%"��0(������������(����+ �� ��/

1. Human Capital Management (Leap)

�����-��!)������7��)1�(��-�� 0���-��-+���1"� Leadership

Development Program !+���-�����(���������+���!+�(��-��

���� ������(( Talent Management �%&�"��

2. Global Standard & Professional Shared Services

�����%��(%�� ��((����� ������ HR Shared Service ,� �+��

(��>�� %"�. �����+ �-����������� ��(�������=�"�(0"

,� (��>��| !+���������������%�%&� Global HR Shared Services

Center ������" �+��(��>�� %"�. �����+ ��������� (��>��

Deloitte Touche Tohmatsu Jaiyos Advisory ����� ��%&����%�$�>�

0�� ���| ��-�������%&����%�$�>� �-���(�� �� HR PTT Chemical

3$� ���(�+�������!(( %��(%�� !+�,������!������� ��������,��

We provide trainings to all employees to understand their

rights in the company’s business code of conduct handbook

including human rights since the first day of employment. The

training also opens opportunity for questioning and suggestion

for employee rights. We pay particular regard to the use of

security personnel, thus our security guards must pass trainings

according to the security guidelines, which include aspect on

prevention of human rights violations when in duty.

We have guidance in hiring and employee treatment which

are in line with human rights principles, employment law and

other relevant laws. As a result in 2010, the company has not

received any complaints or lawsuit in regards to discrimination,

under-age or forced labour, abuse freedom of association

and collective bargaining.

In case of any violations, employees can directly report to

superiors, internal affairs and/or corporate office including

any suspicious in regards to business partner dealings. Our

commitment to human rights expands beyond our direction

operations, to our service providers and contractors, by

embedding our human rights practice as part of contractual

arrangement.

In 2010, we have challenging key plan to be inline with the

Human Resource Policy as follows:

1. Human Capital Management (Leap)

We developed Leadership Development Program as the

management development plan and developed selection

process to promote employee development through Talent

Management Process.

2. Global Standard & Professional Shared Services

To improve the current HR Shared Service and ensure

readiness for the growth of the company and to be Global

HR Shared Services Center in the near future. We worked

Sustainability Report 2010PTT Chemical Public Company Limited 70

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����(��-���� ���| 0��8��������� ��� �1!+���������*��*

"��"�� 118 ��#$ �������� ������� �+�/ *�� !+��� ���

*��9��,� %������� �

with Deloitte Touche Tohmatsu Jaiyos Advisory to design,

improve and provide recommendation regarding service

delivery model and role & responsibility to suit with the new

designed functions; process, regulation and job description;

and software application

The project duration is expected to be 18 months from

August 2010 to February 2012.

�3�2����22@0���PTT Chem Group has a policy of having an equivalent

standard in welfare and compensation to its peers and in

compliance with law. Discrimination against any personnel

towards social status or gender preference in performance,

pay grade and bonus consideration is not tolerated. We

provide employees both permanent and probationary status

with welfares and monetary fund, such as moving and relocation

expenses, accommodation, per diem, shift expense, standby

compensation, overtime and weekend compensation expenses,

meals and travel expenses, provident fund, social security,

workmen’s compensation fund, life insurance and personal

injury, health benefits, dental plans, childbirth support fund,

annual checkups, blood workup and hepatitis B vaccination,

housing loan, savings so-op, uniforms, death support fund,

Employee clubs by interests, education fund for employee

children and awards to employees with 10, 15, 20, 25, and

30 years service to the company.

PTT Chem Group also established provident fund for monetary

security to employees in occurrence of leaving the company

or retirement by matching the employee’s contribution with

5-10% addition based on membership age. Payment of fund

applies to all end-of-employment cases except firing case.

The provident fund committee oversees the fund management

and paid compensation according to the Thai law Section

118, including fund governs by social security.

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)+���%:�(�"� ��!+� Competency ������� �������"�� )���

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����*�� !+��� !)���7���%&���(���+"���% !+���-��((��+���

�����������#!+�2��9���1 �������(0����������,���1����(�����

(��-�� Talent ������"���������"�!)������(���"�!-��

"���% ��������/���� � Leadership Development Program

��-��()1�(��-���������( �������7��9���)1���3$� �%&����-�$� � �'%����(

�������=,� ������ �'�������%,�� -���

��������/ ��������7��!���� ���4���(�!+������7��2��9��

���� ��������("�� ~ "+������!"�+��� �� ������� ����

��������1�!+��������-���,� ���� �� 3$� ��%_ 2553 ������"��

����<+��������(���7��(��+�����/ (��>�� ��� 70.6 *���0

�3�2���!������2�To ensure business growth and sustainable development, it

is vital to ensure our employees potential development. We

provide equal opportunities for competency development for

every level of employees and skill set. Every employee must

undergo annual performance and competency evaluation

by their superior for career path and development planning.

Talent management is one of the programs to groom high

potential and exceptional employees in succession planning.

For managerial level, Leadership Development Program is a

driving element for us.

Additionally, we have developed a training guideline for

potential development in all staff levels with 2010 having

at least 70.6 hours per employee.

�������������"�75�6��������3�2���,�2

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41

?���� ������ 15-16 ?���� ������ 13-14President, Board and CEO Employee Level 15-16 Employee Level 13-14

4365

?���� ������ 1-12Employee Level 1-12

79

,�"�-���Z_�&���%�!"#�����&)���������������&

Sustainability Report 2010PTT Chemical Public Company Limited 72

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*���"����"�� �*�� ������������(���� ������� 0�� �����,9����

*������, �������������( Quality of Work Life !+�%_���)����

%"�. �����+ ��������0�� ���"�� ~ ��������(����!+���������

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,� ���� �� ��#$ ���"�(!��!+����������"�� ~ ���

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�$ ����,� ���� �����%_ �������(���(#$ ���"�� ���!+���

)+�����������-��!���� %��(%�� �������7�����������

��89��*���"����� ����� �'����� "�������

��������-��!��%:�(�"��������� !� ��!+����%:�(�"�"��!� ��

��������������������>*� 0�%:�(�"�"���-�!� ��

��#$ ��-�����~ ��������,�� ��� ���� ���� �$ ��������� !� ��

����-������(� ��(�*�!� �� "+�������%:�(�"����������������

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�,����� ��������� ������� ����%�������� �+���

�3�2�����Although we consider ourselves as a thriving organization, but

we also pay attention in balancing our employees work and

personal life through various activities, such family day, children

day and good health & happy life program. In 2010 PTT Chem

Group has initiated projects to promote good atmosphere in

the work place and enable employees to foreign readiness,

such as English training course. Furthermore, health care,

safety, work environment and compensation and welfare are

fundamental yet significant to our employee care.

Every year, employee satisfaction survey is conducted to

learn and understand employee needs in order to set and

continuously better the quality of work life.

We have guidance in hiring and employee treatment which

are in line with human rights principles, employment law and

other relevant laws. As a result in 2010, the company has not

received any complaints or lawsuit in regards to discrimination,

under-age or forced labour, abuse freedom of association

and collective bargaining.

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�733������!�����3�#�7���3�2��5D�5���56������

77%

82.7%

84.2%

'V���#

-�����������()��*�(/-��� ����������(�(-�

(��>�� 0�� ���� ���(��-�� ��

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�������-��"��)1�(��-������()1�������,$/��%

�����7��!+�4���(����� ��

)����5Responsibilities of duties and tasks

Company, structure and procedure

Satisfaction on supervisor

Internal and external relationship

Working environment

Career path

Compensation, welfare and activities

Communications

Performance appraisal

Perspective on management from

manager level

Employee training and development

2551 2552 25532008 2009 2010

�?�K���_� 1.5 %1.5 % Increase

Sustainability Report 2010PTT Chemical Public Company Limited 74

Page 84: PTTCH: Sustainability Report 2010

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)����

�3�2��- Intranet web board

- CEO forum

- E-mail

- Notice board

- Organization direction seminar

- Clubs of various activities

�;&�������

)�������2���5���7�- Annual report

- Analyst meeting-quarterly

- Road show

- Information report to the Stock Exchange of Thailand

- Comply with international investment regulation

6/�;$����� /�������

�����2< C ���5��- Annual shareholder meeting

- Annual report

- Website

- Road show

- Analyst meeting

����#�������2

��72�����C#���3��- Regulatory development advocacy

- Reporting according to regulatory

requirement

- Participate in networking

�/��

�75��3- CRM

- Newsletter

- Company magazine

- Customer survey

- Events / forum

�/��� /6/���&���

�7��2�5 C��������5- Alignment meeting

- Supplier meeting

- Vendor list

- Suppliers / contractors registration

- Business transaction

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,� �+��(��>�� %"�. �����+ �%&�%5�������="����������������

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!+�����(��/����%:�(�"� ��

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�,�������(�����"��������� ������ 3$� ���������(�������-�� ,�

)1������������ !+�����-�)1�����������������������������(�����

�� "���%��/

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Page 85: PTTCH: Sustainability Report 2010

-��,�#$��I�"�(#�(#

�-���

,��,�/'��,,�

��337���� C 5�����- Daily visit to communities

- Community Partnership center

- Publication: poster, brochure, journal

- Public hearing / scoping

- Survey

�/����������

��3�����- Events

- Personal contact

- Activities

���+������

(#�- Events

- Personal contact

- Activities

- Public hearing

�;&���0�1

���<3��- Open innovation

- Academic conferences

- Publication

- KM Sharing

�������q

�55�����5- Become a member and task force team

- Join associates

- Activities

- Publication

�$"����,�

�<��- Press release

- Meeting with CEO

- Press tour

- Events

- Exhibition

- Magazine

Continuously dialogue with stakeholders relevant to PTT

Chem Group business is a significant factor for achieving

business objective. Therefore, PTT Chem Group develops a

mission to response to both internal and external stakeholder

expectation. Each function has to identify their stakeholders

and engage their stakeholder in both company level and

facility level. Engagement has to be conducted continuously

from before entering; construction phase to operation phase

to ensure all stakeholders including community expectation

has been considered in business decision. Method for stake

holder expectation identification and stakeholder engagement

are provided as follows.

Sustainability Report 2010PTT Chemical Public Company Limited 76

Page 86: PTTCH: Sustainability Report 2010

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!+�������-����(�������(�5 �%&�"��"�J��!+��%&��+� �� ��/�

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!+�����*���= 3$� ���(�������(�5 �������-�������8�

�����(�5 ,�(�,",� ������ ���%��*��+���� !+�����-�%��*�*�

�(���)+��������������!+����2$�>� ���������� ���� ����,����

!+�!�����-�����1� ������*�*�������' !+��������������%��(���

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!7:2������572������PTT Chem Group has systematic public hearing process to

ensure our business operation has been conducted carefulness,

rightness and transparent considering the benefit of society

and community and compliance with the national regulation.

In 2010, PTT Chem Group has conducted public hearing

for 16 times by an experience and qualified third-party to

ensure the process is standardized and neutral. The process

comprises of public scoping, focus group meeting, public

review, education and building understanding on chemical

process, community relations activity and open-house activity.

���������������"K<����\�K�@�>� �� ����;���� �������Key concerns from public hearing

� �������� �Response to the concerns

���%{� ���!+�"�(��� "���-"�<���<��Emergency prevention and response

)+����("����,9��Health impact

����*��/�Water availability

���%+��9�����#,��� Transportation safety

������ ����� #���Local hiring

���+��+�(��/ ���,� �����"��-���Illegal industrial waste dumping

*�/!� !+�������,������(*�*��������"����%{� ���!+�"�(��� � �"���-"�<���<��Clarify and make understanding with community in emergency prevention and response measures.

���������+�%���8���������'���- ������������������������,� (��>�����+��Reduce VOC emission from the group’s facilities.

���������� �������+�%���8�/��*������(�����)+�"��� "������� Continuously reduce water use in the production process.

����==���-���-�"���+�� ������#,��� 3$� �����(,��1+������������� �����# -��*�*��(�-���#�� ������������������-�����==���-���-"��+� ����#,�� 3 ����(,�1+���������==���-���-"��+� ����#,�� 3 ����(,�1+��

����#�����(���#!+�!�� �-�(��>����(���(��

Make a contract with waste contractors to install a black box in waste transportation truck which the velocity and route will be recorded. Community could also record the vehicle license plate for inform the company in case of complaint.

��0(���(������/�����,���� �� 20% ,� ���� ����/ -� Receive local people to work for at least 20% of the totalworkforce as the policy.

�*�(��>����(��� �������������(������=�""���-� 0��#�����(���,� ����%�������"��"� GPS ����"�����(������ �����# !+�����"��"� �+�� ���*(�>��(�� ��������(������=�""���-� 0��#��(���,� ���*(�>��(�� ��������(������=�""���-� 0��#��(���,� ��

Use license waste contractor with GPS and black-box installed onall vehicles.

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���� ����'!+���7����89��*���"!+��� ������ �� 0��*� “���"���”

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,� )1��������� ��,�� ����+�� �����������,���� !+��� !)�

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���������� 0�� ����������=3$� !(� "�%��0*�'����� ������(

��� 0�� ����������� !��+�� 0�� �����7����89��*���" 0�� ���

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As a good corporate citizen, PTT Chem Group is committed

to creating and developing of life and social sustainability

through innovation as principle to discover the value of business

and our social context. Therefore, we have set social investment

and community development as one of our elements in CSR

Framework to return the favour and grow together with our

communities.

From 2010, the group has develop projects for communities

more systematically using stakeholders anticipation as

studying guidelines to understand and plan more effectively.

Collaboration among stakeholders between employees and

community members has been implemented to help build a

more long-termed self reliance to the community. Types of

social and community projects are environment projects, life

quality improvement projects, education opportunity projects,

relief efforts and public health projects with highlighted

projects such as:

Sustainability Report 2010PTT Chemical Public Company Limited 78

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�������#��������"��������

������3���2�)�*����)#����1#+

"73���-�2��3��

0�� ����<+��������"�+�0+�����#�����

Global warming reductionprojects for the King

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

0�� ������� ��"���$����%+1�%}�Conscious raising on reforestation

0�� ��� SEA Camp IISEA Camp II Project

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

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

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

���2$�>�Education

�������Sport

���2$�>��� ��+)���������/0�� ����������2��"�'���/0�� ����"�9���

Distance learning through satellite,Youth scientist, Tripartite Project

�����8��, �����81%09�Public health and infrastructure

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

community clinic

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�����2������:7����

�,��#���$�

6/�'���&<�#:���,��

-�5�5���2�6

�$"�q

���5

�� ������*��*�*�Community job promotion

Luffala

�� ������7����Cultural promotion

����J��������>'�����“Katin” ceremony to conserve

Thai heritage

���� 0�����-����*�Opportunity for youth creation

0�� ���!����� ������2$�>��1 ��

Excursion for youth project

- 0�� ���*���-+��)1�%���(9�- ��0���*���/����1�9��/����- (������/����*��)1�%���(9�- �����1*���-+��)1�%���(9��/����- Flood relief project- “Kon Korat” flood relief project- Bottle drinking water distribution- Rehabilitation and assistance for flood victims

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

Sustainability Report 2010PTT Chemical Public Company Limited 80

Page 90: PTTCH: Sustainability Report 2010

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��(�����%��*������������,$/�

0�� ���%5��/����-�*�*� ���"�/ ,$/�����%_ 2544 ������-�(���������

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,� ���(���� 0����������������-���!��'��+������� ����-�

(�����"������>�0�������%!��%��*�*�"�*�*�"�� ~ ���,"

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��!��' ��(�+ ��#$ ����-�(�������� ��� �� ���������-������

���-��)1��,���*�(�������,$/� �$ ��0(��-����"�/ "�+����%5��/���"

,$/� 8 21�'4���(� (��>�� NPC S&E ����� �� -������ �����

,�0����!+���+�������-�(�����!��%��*�*�*���("����

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��,9��!+��-�����1�������,9��� ���,"*�*���2(�+��� �("����

!+�(���<� �%&�%���� �����+� 1 ���/

��������/ �������������(1+����������������!+���7����((�

(��.) ����������0�� ����-�����%¡��!�� 32 *�*� ���,"�("����

!+� 14 *�*��� �. (���<� !+�0�� ���"��"�/ "1��0� ����

��-��( 11 0� �������,"�("���� 3$� ���%&�1+�����/ ��/�������

1 +���(�� ������%&�-�$� ��(������-�!��*�*���(����8��+����

!+���������%��!���-���� 3 �����

���������,!),��,�

�+��(��>�� %"�. �����+ ���������0�� ������(������������"���

�� ���*�"��,��)+������1�������� ��8����������-���(�� -������

0�����-�������(��������� �����!+�����������(-�����+�

!��{�-+� 3$� �%&��#�(����������*���*�=��������*���� ������

��337������2����Despite numerous public and private hospitals available at

Rayong, the existing capacity is still not meeting the demand

and the rising numbers of population.

Community Clinic project has been initiated since 2001 to

provide local communities in Map Ta Phut and nearby areas,

convenient access to medical services and to reduce their

financial burden on medical costs. At the beginning, the

initiative started off with just mobile teams of doctors and

nurses to provide medical services to various communities

within Map Ta Phut district. Due to the quality of mobile teams

and medical care given by the team, numbers of users have

rapidly increased. PTT Chem Group sees the opportunity to

help out, thus we have joined our participation in this initiative,

by setting up community clinic at our training center at NPC

S&E company limited Rayong province to provide medical

care to Map Ta Phut communities with the level of high

standard as if attending our own employees.

In addition, we have arranged monthly mobile doctors to

provide health checkups and educate the local communities

regarding basic hygiene and health issue in Map Ta Phut

district and Ban Chang community.

Also, we partner with Pharmaceutical System Research and

Development Foundation to initiate medical box for 32

communities in Map Ta Phut area and 14 communities in

Ban Chang area and Medical Section for 11 schools in

Map Ta Phut area. This initiative is worth more than 1 million

Baht, which we consider it as service to society. Medical supply

is replaced every 3 months.

,���2�075��55�-�2��3��PTT Chem Group has initiated supports for innovation to

creating mutual values for our home Rayong province. PTT

Chem Group provides financial funds and works with Mae Fah

Luang University which is an educational institute specialized

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Page 91: PTTCH: Sustainability Report 2010

������!+���7��)+�"9�8Z'������*�"� ���+��)+�"9�8Z'�������+

�%� ��������)+�"�%&�������%����*�*� 9��"�!(���' “+1���+��”

3$� ����� ���*�*�-�� !�(�%&�!-� !��

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*����� �������%&�����-�$� �����)���!� �� !� �� ������!��

9�����*� �#�(�����2$�>� -��� ����*��� !+�*�*� �����

���� ����'0�� ����� ����!+���7��*�*����� -������ 3$� ����-�

�������=�������7���2�>J��� ���������� ��*�� �������%&�

������������#�$� ��"��� ��� 9��"�!����� “creative economy”

���������/� �������������������������91�%5==�*��(���!+�

��"#���(�� ���*�"��� ���1 ���("�� ��%&�����%����(����=

�����)+�" ���!�� �����������%+���� ��� )��(�� ���+ �,�

����-� ����,� �((��(� !+��(�( �%&�"�� )�����(��"#���(�����1�

���+��(��>�� %"�. �����+ ������!�� �+��3���� !�""�/!�+����++'

�����3��+� �"�������+���� ��%&����"�/ "�������)+�"9��"�

�����(������������*�����2��"�'������ ���� -�����+�

!��{�-+� ������%&������������89��!+����� ��������

��(%�������9��9��"������(�� �"�J��������

����-������)+�"9�8Z'�� �+���!+�� +1���+��� �����(�����7��

)+�"9�8Z'������+�%� ���+��)+�"9�8Z'����%&��(1��-+� !+���+�����1

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

�� ���*�"���� ��-���/ �����"�(��� ���"�� ���,� "+��

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

�� !)�������-�������(��������� ��7��)+�"9�8Z'�-���(�������

��������%&�*�� �� ��������-��� ���%��*�������' -���!�!"�

�����7��(����9�8Z'������-�!(���'+1���+����/ ����#�"�(0"!+�

�%&�������(��/ ������(%����2 !+�����(���+"���%

in cosmetics to develop products from nature for natural spa.

The products are being commercialized as local product from

Nong Fab community under the brand “Luffala”.

Luffala natural spa product is one of the prides of Rayong

community, which is an outcome of collaboration between

private party, educational institute, government agency and

communities. We values growing of local economics for our

neighboring communities and business opportunities using local

knowledge and natural products whereby sustainable livelihood

can be attained under the concept of creative economy.

This is evidence by the use of various natural products in

the production of Luffala products, such as extracts from

mangosteen, ipomoea, tamarind, aloe vera, asiatic pennyworth

and luffa in combination with our existing products from PTT

Chem group, such as Glycerin, Fatty-Alcohol, Ethoxylate

Triethanolamine, which are a key ingredient in manufacturing

various personal hygiene products. The production is standardized

under the control of cosmetic science department of Mae Fah

Luang University to build assurance of quality to our users.

In addition to the above product lines, Luffala has developed

various natural products, such as shower cream after sun cream

serve. These products can be accounted for natural product

development as well as to serve the market needs in integrated

cosmetic areas. Moreover, PTT Chem Group plans to expand

our supports to cover the whole chain from marketing, selling,

to packaging, in order to grow this business for our local

communities to national and international markets.

Sustainability Report 2010PTT Chemical Public Company Limited 82

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�����+ �����(�+�� %"�. ���������"�/ !+��,������%&���*���+��

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���/ !����%����2�� ��������������-��� 5 (��>�� �����

��"��-����("���� ���!�� %"�.-���3��� -(�!�+3��� - 0�+�' -

��������+ 0��������)1��������-=�,� �+��(��>�� %"�. �����+

�%&�%������+��������*�*� ������������������7��0� ��"��!((

3$� �%&��"�"����� !��+��!+�*�*� "+��������(�����"�����(

�1!+9��� !+���������� ������89��*���"*�*���/ ������,9��

!+����2$�>�

�%&������������/ !��,� ��"��-�����%����2�� �����!��

������ ��!+������ ���������1!+��� !��+��!+���89��*���"

*����� ������-���� �%&�"��!((,� ��� ����1����������7��

��"��-�����(�1�����1!+*�*� )������(�������������,�

���9������

��������,� 0� ����/ 5 (��>�� ����8��� �� “������*�*�”

!(� ����� ������%&� 3 ����

1. �������� �!��� �<"��"+� �����������+��>8�������*��������

������#���������1� !(� %5�%���(���8' !+�"�����(�1!+

����� ��/ ������� !��+��!+����%+��9��-���������-���-��

��337�����!���5���5�PTT Chem Group is aware that collaboration between

industrial sector and communities is a key success factor

in living in harmony between communities and industries.

PTT Chem Group as a part of PTT Group is among the five

entrepreneurs in Map Ta Phut Industrial Estate: PTT, SCG,

BLCP Glow and Dow Chemical; to join hands and announce

a new group “Community Partnerships Initiative" with PTT

Chem Group CEO as the first president of this initiative.

The initiative which is the cooperation of industrial plants

in Map Ta Phut, the first kind in Thailand, to mutually agree

to develop an exemplar of environmental friendly plant that

exceeds legal requirement and monitor each other as well as

promote life quality of communities in terms of health,

education in order to allow industry and community to live

sustainably.

Cooperation of “Community Partnerships Initiative” is intended

to show honesty and commitment to take care of environment

and life quality of Rayong people. The initiative aims to create

Rayong as a model of city that have quality life and industrial

development along with community nurturing through

participation by every sector.

The cooperation brings together 3 missions:

1. Green Operation works in the manner that industries that

seek to assist industries by sharing of experience and monitor

each other in respect of environmental and safety performance

beyond regulatory compliance. The priority is in the area of

Volatile Organic Compounds (VOC) reduction, odor management,

controlling of glare gas including establishment of protection

strip by growing plantation to provide buffer between industrial

areas and community areas.

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0��!)� ����� ���������+����������'���- �� (VOCs) ���

��(���+��� !+������(�����%+�� Flare Gas ����/ ��������

!��%{� ��� (Protection Strip) ������%+1������'�����+��>��-���

0� ��!+�*�*�

2. �J��� ^�^<�Z��Z� �������89��*���"����� ��������� ���2$�>� !+�

��,9�� 0������������J��,��1+��,9��*�*��%&����/ !��

��%����2��

3. <:K�< ��<���<�> ��� ���> ^� �������"�/ “21�',��1+,������

������*�*�” �������-�����������"���+� ��������������-���

��"��-�����(*�*���� �%���)0%�� �� �%&�21�',��1+����1�

��-��(*�*� ������/ �%&� Call Center ��(,����� ���� !���,%5=-�

"�� ~ ��� ������� !+���������%5=-���0� �� �����1����"�� !��

�����*�*�����

�+�� “������*�*�” �� ���!��%5=-���������� ��� ���� ������

#���������1� !(� %5�%���(���8' !+�"�����(�1!+����� 0�

����� -�� �-���"��-���!+�*�*�����#�1�������!+��"�(0"

�%��������� �� �����("���� �� -������

��������/ �������"����8'�/������%_���)���� �+��(��>�� %"�.

�����+ �%&�� �'��+���(!��~ ����,���-����*���-+����()1�%���(9�

0� �+��(��>�� %"�. �����+ (������ ������� 4.26 +���(��

��#$ �������� ��� ,� (��������,'"�� ~ �����*���-+�� 3$� ����

� �'���� !+����� ��,� �+��(��>�� %"�. �����+ ���

2. Beyond social responsibility is about raising the quality of life

by focusing on education and health of the communities.

The priority plan is to develop community health database,

which is the pioneer for this kind of initiative in Thailand.

3. Communication is based on the set-up of community

partnership center in 2010. The center is expected to be a link

between the industrial sector and community to share knowledge,

address critical issues and timely respond to community needs.

“Community Partnerships Initiative” is committed to solve

problems together in a prompt manner through knowledge,

experience sharing and monitoring each other. The initiative

aspires to see both industries and Rayong to live and grow

side by side in a sustainable fashion.

PTT Chem Group was among the first organizations to provide

relief effort to flood victims in 2010 with 4.26 million baht in

charity cash as well as necessities from companies within

the group, employees and fund raising to help alleviate their

situation.

����� ��� � 4.26 ���&�

����2�+>&.�3�22���5�0���

“*89�*,����%��2 �,�����.����:6&��”Rehabilitation and assistance for flood victims

“�)������:60� �,�����:6&��”“Kon Korat” flood relief program

)����� ��3;�$��< ���0���������:6&�� (�����. �&.)Flood relief project between government and private entities (with MCOT)

�:6�2�.�������%-2� ����%��2 �����������. �&����%�2 �-@A������Bottle drinking water for people impacted from flood in November

�:6�2�.�������%-2� ����%��2 �����������. �&����%�2 �����-���$Bottle drinking water for people impacted from flood in February

1,500,000&� / Bath

1,000,000&� / Bath

800,000&� / Bath

564,000&� / Bath

391,698&� / Bath

Sustainability Report 2010PTT Chemical Public Company Limited 84

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*� ����� � �'�� !+�����$ ��������������� ������"�� ~

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84.1

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�����������8�������-����������7����������� �� ��

�&���������#-3���'��

Supplier ����� ���-���(�+��(��>�� %"�. �����+ ��"�� $�#��

%:�(�"�"�-+�����������������,� �+��(��>�� %"�. �����+ -���

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�� �����-� Supplier ����,����!+�$�#��%:�(�"�"�-+�����������

������,� �+��(��>�� %"�. �����+ ����8���� Supplier ������#

%:�(�"�"���� ������%&�"�� �(�����==� -������#$ ,�/�"�� (��

�+����==������� �� 3$� ��%_ 2553 � ������(���+����==�

Supplier

To ensure our performance in corporate social responsibility

responses to the stakeholders’ expectations and concerns,

we have conducted a survey in regards to corporate image,

recognition and satisfaction from our target groups including

(1) 259 employees; (2) 934 community members; (3) 20 investors;

(4) 75 customers from all 4 business lines. Results were higher

than our 80% target with employees, community members,

investors and customers rated our return to social and

communities 81.8%, 91%, 88% and 83.9%, respectively.

Satisfaction survey results have shown areas with higher scores

than targets as follows: (1) Good governance 85.9%; (2) Human

rights 86.3%; (3) Fair labour treatment 87.1%; (4) Consumer

responsibility 86.9%; (5) Social and community development

85.6%; (6) Environment conservation 85.6%; and (7) Fair conduct

84.1%.

Our intention is to use these results to keep improving our

sustainability development continuously.

�7��2�������������3��PTT Chem Group suppliers have to follow PTT Chem Group

business code of conduct or other similar principle equivalent

to our standards. In case a supplier is not able to follow, we

will review the contract, which could be contract termination.

In 2010, there is no supplier contract termination.

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Page 95: PTTCH: Sustainability Report 2010

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������������,� �+��(��>�� %"�. �����+ !+�� �+��(��>�� %"�.

�����+ ����� �� ����������3�/�)+�"9�8Z'�������)+�"����� #���

0�����!���� !+��� �����-�-��� ��,� �����������8����3�/�

)+�"9�8Z'�������)+�"����� #����%&������(!�� �*�� ��-�� !+���%��8'

���������� ������-�����,�"���� �2�>J�������/������ -������

���3$� ����-������%&�(���,� ��� "+����+�)+����("����� !��+��

����� �������*��+� �������,��� ��� ��%_���)���� �����������

������3�/�����1����9����� -������ #$ 20% ���������3�/���/ -�

0�����-+���%&�������3�/�����1����9���%����2 68% !+�����

���,����� 12%

Apart from supply chain management according to PTT Chem

Group Business Code of Conduct, we promote the acquisition

of local products by providing guidance to our functions to

give priority for local products, such as food and cleaning

equipment. We expect economic expansion in Rayong

Province, where we consider it as our home. In addition, it

would reduce impact to environment as reduction in energy

used for transportation of good and material. In 2010, we

have proportion of local suppliers up to 20% from all suppliers.

Other suppliers are national supplier of 68% whereas 12% is

the international supplier.

Sustainability Report 2010PTT Chemical Public Company Limited 86

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������==��������()��*�(������89�� ��*������ ���%+��9� !+���� !��+�� �� ��/

1. �� �������(��-��������� !+������(������1=��������(�"��-"� ���(�����( ���(%}� ������-�

"������'��� !+�)+����("����� !��+�� �������%��(%�� ���(�����!+����%{� ������!-+� ������

2. �1!+������� ��*������!+��9��!��+��������� ��,� )1�%:�(�"� �� !+��� ����������,9�������

!+�������,������� ��

3. %:�(�"�"���-������ �� ��89�� ���%+��9� ��*������ !+���� !��+��"�,����-��

!+��"�J������~ ��������,��

4. ���"���8'���������������� �%�������9�� ����#���� ����*�������-�!���+��)1����������������

5. ��%��*=������7����� �� ����%&�-+������������������� 0�����%��(%�� !+���7����� "�������

0� (��>��| ����7��!+���� ���3$� ��((���������������89�� ��*������ ���%+��9� !+���� !��+��

��#$ ������(�������������� ����� ����-����� ����������!+���()��*�(����������� ���-��%&�

�%"��0(� !+���������-�)1������,�� ���(��� ����#$

�-#&#���<) �,!�����# ���'���<�# �����"��������

&��1�� '��. ������� ���� (��,�)

%����2 8 ������ 30 �#���� 2553

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������)1��������-=�

%����2 8 ��� 30 #���� 255

� �� 0 � �

Page 97: PTTCH: Sustainability Report 2010

PTT Chemical Public Company Limited strives for sustainable chemical industry excellence and

responsible company under sustainable development principle. Our commitments on quality,

occupational health, safety and environment responsibility are as follows:

1. Focus on risk management and controlling loss from accident, injury, illness, damage to properties

and environmental impact through process improvement and source prevention.

2. Oversee occupational health and working environmental of operators and promote good health

and happiness in workplace

3. Comply with legal requirements and applicable standards regarding quality, safety, occupational

health and environment

4. Posses intend on good management and high efficiency to build trust among stakeholders

5. Adopt sustainable development principle in business operation through continuous improvement

and development

The company will develop and maintain quality, occupational health, safety and environmental

management system including will support with adequate resource, employee involvement, employee

accountability and communication to all relevant parties.

H7�2��������7�������2�"�2������6�����<�������3���2�!�2���!�����3���2�!7:2�����3�����,�3��<

Announce on 30 June 2010

(Mr. Veerasak Kositpaisal)

President & CEO

Announce on 30 June 2010

(Mr. Veerasak Kositpaisal)

Page 98: PTTCH: Sustainability Report 2010
Page 99: PTTCH: Sustainability Report 2010

�$����%���'6����������

Page 100: PTTCH: Sustainability Report 2010

����*���"#���((+���"��)

Material used(Million ton)

���'6����������!�����3���2D5�!6�3�������)��75

���'6������������"��������

������3���2�!6�3���

�� 25502007

!��� � I - 1!2����I - 1

����*��+� ���� "�

Total DirectEnergy

(Million GJ)

����*��+� ���� ���

Total IndirectEnergy (Million GJ)

%���8�/��*�Total Water

Consumption(Million GJ)

�������������/�

�+�(��*��-�

PercentRecycle

Water (%)

%���8���%+���X�3

������������ "� ��/ -�

Total directgreenhousegas emission(Ton CO2 eq)

%���8���%+���X�3

������������ �����/ -�Total indirectgreenhousegas emission(Ton CO2 eq)

%���8���%+�� NOx ("��)NOx emission (Ton)

%���8���%+�� SOx ("��)SOx emission (Ton)

%���8�/���/ (+��� +(..)

Total waterdischarge (million m3)

�� 25512008

�� 25522009

�� 25532010

3.59%

2.28%

2.18%13.8

24.6

15.6

20.2

26.2

0.7

0.9

0.2

0.1

2,458.84

1119.64

1340.09

974.03

0.8

0.7

0.9

0.7

8.4

12.2

13.4 1.83%

0.7

0.8

0.8

0.7

-

-

-

-

-

-

1,192,586

1,389,386

-

-

9,248

6,017

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Page 101: PTTCH: Sustainability Report 2010

(�0��� ("��)BOD (Ton) 3�0��� ("��)

COD (Ton)

���!,��+� ("��)Suspended solid

(Ton)

%���8,� ������"���������� ("��)

Hazardous wastedisposal (Ton)

%���8,� ������"����������

"��-������)+�"("�� / -������)+�")

Hazardous wastedisposal per

unit of production(Ton / ton production)

%���8,� ��������"����������

("��)Non-hazardous

waste disposal (Ton)

%���8,� ��������"����������"��-������)+�"

("�� / -������)+�")Non-hazardous

waste disposal perunit of production

(Ton / ton production)

��������/ ��������-+�������=Number of spills

%���8��������-+�������= (+�"�)

Volume of spills (liter)

1.80

2.45

1.74

2.13

46.83

45.81

38.49

44.81

11.20

11.07

5.67

6.53

5,768.72

7,958.27

3,038.75

5,600.15

0.0111

0.0139

0.00498

0.0117

956.97

2,586.03

3,727.17

1,918.19

0.0018

0.0045

0.0061

0.0040

0

0

0

0

0

0

0

0

Sustainability Report 2010PTT Chemical Public Company Limited 92

Page 102: PTTCH: Sustainability Report 2010

!��� � I - 4

����*���"#���((+���"��)

Material used(Million ton)

�� 25502007

����*��+� ���� "�

Total DirectEnergy

(Million GJ)

%���8�/��*�Total Water

Consumption(Million GJ)

�������������/�

�+�(��*��-�

PercentRecycle

Water (%)

%���8���%+���X�3

������������ "� ��/ -�

Total directgreenhousegas emission(Ton CO2 eq)

%���8���%+���X�3

������������ �����/ -�Total indirectgreenhousegas emission(Ton CO2 eq)

%���8���%+�� NOx ("��)NOx emission (Ton)

%���8���%+�� SOx ("��)SOx emission (Ton)

%���8�/���/ (+��� +(..)

Total waterdischarge (million m3)

�� 25512008

�� 25522009

�� 25532010

-��-"� :*** 0� ����,�#�� ��--�$� -���#$ ������)+�"0��+����' !+�������)+�"�����81%���• ����*��+� ���� "� - 0� ����,�#�� ��--�$� �*� Natural Gas !+� Tail Gas �����)+�"�+� �� !+������*��+� ��-��������� Steam Boiler !+� Waste Heat Recovery Boiler - 0� ����,�#�� ��-��� �����*��+� ��-������9������ Steam Boiler !+� Waste Heat Recovery Boiler • ,�(�,",� ����*��+� ���� ��� - 0� ����,�#�� ��--�$� �����*����/��%&��+� ���� ������ *�������������/� �������8�<���<������(���!����{�!+����/����(��>��9���� - 0� ����,�#�� ��-��� ��(���!����{�!+����/�����(��>��9���� !+���((� ������� Utilities Unit ,� 0� ����,�#�� ��--�$� • !-+� �/�����*� - 0� ����,�#�� ��--�$� ��(�/���( (Raw Water) ��� ���. 3$� �*��/����!-+� �/�)����� 0����)������(�����%��(%�� ��89���/��� �����/ ��*��/���+ ���)������(����� Reverse Osmosis (RO) - 0� ����,�#�� ��-��� ��(�/��� ���(��>��9����3$� ��(�/���(��� ���. !+��*��/����+���)������(����� Reverse Osmosis (RO)• %���8�X�3������������/ -� - 0� ����,�#�� ��--�$� !+� ��,�#�� ��-��� �� ��%���8 CO2-emission ,� )+�"9�8Z' "� scope 1 !+� 2 "��"�J�� IPCC 2006 !+� ISO 14064 (PTT Greenhouse Gas Accounting and Reporting Standard) - �������� ��������%+�%+���X�3������������%_ 2550 !+� 2551 ����� �����+� �1���-��� ��������� ���������"�J����-��(�� ��!+������(�=*��X�3����������• %���8���%+�� SOx - �������� ��������%+�%+���X�33�+����'������3�',� 0� ����,�#�� ��--�$� ����� ��������#1���-��������"����%{� ��� !���, !+�+�)+����("����� !��+�� "������(�������� �����%�����)+����("����� !��+��,� 0� �� ����������*��X�3���*�"� �%&�!-+� �+� ���� "� ��� ��� ���� • !-+� �/������ ��(�/���/ - 0� ����,�#�� ��--�$� !+� ��,�#�� ��-��� ��(��/���/ ���)������(�����(�(�������89���%&��%"���-� + �� ��(��/�,� ���. 3$� �-++ �1��+� *��-�� • ���������,� ��� - 0� ����,�#�� ��--�$� !+� ��,�#�� ��-��� �����,� ���0����%��(��#��!+�45 �+("�-+�� ����)��������� ������!�%���9��������-��� ������%�*��%&� ��"#���(��!��/�*�/���+� ��!��/�*�/���+� )� ��#$ ����*�3/�!+�������+�(��*��-�

����*��+� ���� ���

Total IndirectEnergy (Million GJ)

2.69%

1.95%

1.68%7.3

1.5

1.4

1.7

1.3

16.4

15.3

18.2

14.3

2.2

1.8

2.1

1.1

873.01

769.61

548.32

444.88

0.4%

0.8

0.6

0.5

36.70

17.89

19.53

5.93

-

-

756,744

660,394

-

-

293,061

274,871

6.0

6.4

7.1 1.61%

!2����I - 4

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Page 103: PTTCH: Sustainability Report 2010

(�0��� ("��)BOD (Ton) 3�0��� ("��)

COD (Ton)

���!,��+� ("��)Suspended solid

(Ton)

%���8,� ������"���������� ("��)

Hazardous wastedisposal (Ton)

%���8,� ������"����������

"��-������)+�"("�� / -������)+�")

Hazardous wastedisposal per

unit of production(Ton / ton production)

%���8,� ��������"����������

("��)Non-hazardous

waste disposal (Ton)

%���8,� ��������"����������"��-������)+�"

("�� / -������)+�")Non-hazardous

waste disposal perunit of production

(Ton / ton production)

��������/ ��������-+�������=Number of spills

%���8��������-+�������= (+�"�)

Volume of spills (liter)

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

0.86

2.71

1.05

2.06

21.08

40.12

40.18

32.29

4.88

10.23

6.80

4.75

1,141.78

591.01

1,574.31

4,281.96

0.0013

0.01

0.0015

0.005

561.50

1,727.87

410.28

570.56

0.0006

0.02

0.0003

0.0007

0

0

0

0

0

0

0

0

Sustainability Report 2010PTT Chemical Public Company Limited 94

Page 104: PTTCH: Sustainability Report 2010

��,�)������������'> 2553

����2�<�����������573���������&����

Natural Gas Recycled By-productas Primary Energy

� �^Z>?��� �� ����Total Direct Energy

(Million GJ)

��,�)�������������'> 2553

����2���<�����������573���������&����

��,�� ���'> 2553

����2�?������573���������&���

����������!#�����#��'> 2553

"�4�<�75�?�5��<�5��5�2����&���

Steam

Recover Landfill Reuse Recycle Incineration

Electricity

� �^Z>?��� �� ��>��Total Indirect Energy

(Million GJ)

���� $�_�^Z>Total Water Consumption

(Million m3)

���� $����<"+����� +�"K�����

Hazardouswaste disposal (Ton)

0.6 0.5

16.4 24.1

Surface water Sea water

6.7 9.3

Water supply

4.4

770.3913.06 8,042.77133.2722.72

����������!#.�������#��'> 2553

(��@��4�<�75�?�5��<�5��5�2����&���

Domestic Landfill Reuse Recycle Incineration

���� $����<"+@������� +�"K�����Non-hazardous

waste disposal (Ton)

428.33426.45 0.25333.491,300.23

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Page 105: PTTCH: Sustainability Report 2010

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

2007 2008 2009 2010

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

?���� �Employee

/J>����� Contractor

2000

4033

��"�����������(�"��-"�#$ ,�/�-�� ��Lost time injuries frequencyrate (LTIF)

?���� �Employee

/J>����� Contractor

0.260

0.760.30

0.340.411.670.79

��"�����(�����(�������� ����Total recordable injuries rate(TRIR)

?���� �Employee

/J>����� Contractor

0.09000

6 10

�����)1�(�����(�������� ��Total recordable injuries case(TRIC)

?���� �Employee

/J>����� Contractor

021

2105

���� ��Employee

)1���(�-�Contractor

�����)1����*���"Fatality

0000

0000

���'6����������������'���<�#

��6���!6�3���

0.0900.50

Sustainability Report 2010PTT Chemical Public Company Limited 96

Page 106: PTTCH: Sustainability Report 2010

��������� ����/ -�Total number of employee

25522009

25532010

25502007

25512008

25522009

25532010

25502007

25512008

25522009

25532010

25502007

25512008

��������� �� ��!��"�%���9������� Total number of employee by employment contract

���� ��%���� (Full Time) ���� ����� "���==� (Contract)

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

���� ��*� (male) ���� ��-=� (female)

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

���'6�������������&����

!��2�!6�3���

2,136

2,118

18

1,817

17

1,970

22

1,646

13

71%(1,525)

29%(611)

71%(1,298)

29%(536)

75%(1,490)

25%(502)

76%(1,254)

24%(405)

1,8341,992

1,659

��������� ������/������� ��!��"�����(���� �� (%, ��)Total number of employee in Rayong

by employee level (%, person)

25522009

25532010

25502007

25512008

1,5121,689

1,404

���� ������( 15 - 16 Employee level 15 - 16 ���� ������( 13 - 14 Employee level 13 - 14���� ������( 1 - 12 Employee level 1 - 12

1 (0.05%)21 (1.0%)

807 (37.8%)

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Page 107: PTTCH: Sustainability Report 2010

25522009

25532010

25502007

25512008

25522009

25532010

25502007

25512008

25522009

25532010

25502007

25512008

25522009

25532010

25502007

25512008

��������� �� ��!��"����Total number of employee by age (person)

������� 30 (Less than 30) 30 - 50 ������ 50 (More than 50)

������� 30 (Less than 30) 30 - 50 ������ 50 (More than 50)

359

1,199

101

42%(15)

41%(16)

17%(8)

��������� ���������9�� ��!��"���� (%, ��)Total number of employee turnover by age (%, person)

123

1,297

572 643

1,070

139 150

1,294

692

17%(4)

63%(15)

20%(5)

34%(18)

32%(17)

34%(18)

37%(20)

46%(25)

17%(9)

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

��������� ���������9�� ��!��"�9��Total number of employee turnover by region

��� ��� (Bangkok) ��� (Rayong)

21

18 12

12 28

25 26

28

%�����������(��>��, ������(��>��, ������)1��������-=�President, Board, and CEO���� ������( 15 - 16 Employee level 15 - 16 ���� ������( 13 - 14 Employee level 13 - 14���� ������( 1 - 12 Employee level 1 - 12

31

16

1,561

50

��������� �� ��!��"�����(���� ��Total number of employee by employment level

39

15

1,877

61

35

13

1,727

59

58

14

1,997

67

Sustainability Report 2010PTT Chemical Public Company Limited 98

Page 108: PTTCH: Sustainability Report 2010

��,����-�,����5�������?�<5PTT Chemical was selected as the “Most

Transparent Company Award” out of 10

nominations received from Office of the

National Anti-Corruption Commission

�����3�2��5��6������PTT Chemical received a highest score on Top Employers

of Choice for a category of Industrial Goods among

peers in an annual study by the recruiter Quality Profiles

Placement Ltd.

������#����������

�� ��+����� ���� �� Top Employers of Choice ���+��

��"��-��� Industrial Products ������������ �'��*�/���

!+������ ����1����������,� �+���%{�-�����((��+���

����*�� (Thailand’s Top Graduates Employers) ,� (��>��

���+�"�/ 0����+�' �����

��������+��!����������-'�����

1 �� 10 � �'������������(��-�����������0%�� ��

%����%_ 2553 �������� ���8�������%{� ���

!+�%��(%����������"!-� *�"�

�I���,,�(������,�:�7����<�����5• In Labour Relationships and Welfare 2010 Award in large business

category conferred by the Department of Labour Protection

and Welfare, the Ministry of Labour.

• In Safety, Occupational Health and Work Environment Award

(National) 2010 conferred by the Ministry of Labour (for 12th year)

������;�'���&��!����������'���<�#

�,!�����# ����<)������������������&'����0

• �#��%����(�������������������%+��9� ��*������

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��������������!+������� !� �������� !� ��

����5����6�(��7�2��5�7�5���<�������3��EIA Monitoring Award 2010 Certificate for “105 MW Electricity Plant” for compliance

with the Environmental Impact Assessment Report conferred by the Office of

Environment Policy and Planning, Ministry of Natural Resources and Environment

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�� ��+ EIA Monitoring Award 2010 0�� ���0� ���{����������� 105 MW.

���������0(� !+�!)�����������*�"�!+���� !��+��

����(#����!�(��0,%PTT Chemical received Ecomagination Award. The awards

for leading companies in Thailand including “Ecomagination

Leadership Award” and “Return on Environment Award”.

It is the company’s activity with the business partners to

use green technology to solve the problem of water and

energy consumption to achieve sustainable development

in economy.

����� ���3�����������?�<�� ��+0�� ��� Ecomagination Award ��� GE Water

and Process Technologies %���9� �� ��+�����7��

����%&��"�"����� !��+�� (Return on Environment Award)

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Page 109: PTTCH: Sustainability Report 2010

��$���$(�#2�:�2���3����PTT Chemical is committed to the principles of the

United Nations Global Compact and has been a

signatory and active member. This network for the

responsible involvement of companies in the global

economy.

��&��������$�����&��

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�,�����0�� ��� United Nations initiative Global

Compact ���#���%&������,���������������=����(0+�

������������������� �� ��

�����;�22�������������The AMCHAM Thailand 2010 CSR recognition

for outstanding achievements in sustainable

community development

��������������

��������&6��,�&���������!"�'4����0

�� ��+ CSR Excellence Recognition �����(�� ��+

��J���(��>������������������%&�%��0*�'!+�

��()��*�("���� �0������ ���-��������������

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�?�<5��6�"���7SET Awards 2010 Excellent CG Scoring for 3 consecutive

years conferred by the Stock Exchange of Thailand

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�� ��+����� �����%:�(�"�"�-+������(�1!+�����������

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#2�:�2������������������5Credibility for effective sustainability reporting

in accordance with GRI G3 guidelines, an international

level of sustainability benchmarking

��#������&��

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Initiative (GRI) ������� 3 3$� �%&��"�J�����+��������� ��%�������)+

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��/ ��/ �+��(��>�� %"�. �����+ ����� �������������%������-+��

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Global Reporting Initiative ������� 3 (GRI-G3) �������(�%����������

�������= 3$� �� ��<(�(��/ �+��(��>�� %"�. �����+ ���������

(�(��,� �+��!+��+���'�����"�(��� "��%�����������������=

"���%{�-�����"�(0",� � �'�� �� ��/

)�3?� ���<�#7�<2��5PTT Chem Group has published Corporate Social Responsibility

report since 2007 as a medium to transparently communicate

the Company's economic, environment and social performance

data to stakeholders. PTT Chemical has defined the period

for reporting to be on an annual basis. PTT Chem Group has

adopted the Global Reporting Initiative's (GRI) G3 sustainability

reporting guidelines for this Sustainability Report. In addition,

for the performance data related to safety, health and environment,

it is based on data compilation and reporting system of PTT Group,

which is developed in line with GRI G3 indicators. Therefore,

data compilation and reporting of the group utilizes the same

format to ensure data reliability and also calculation and

reporting methods are in compliance with GRI G3

PTT Chem Group declares this report a GRI A application

level.

In addition, PTT Chem Group has adopted the PTT Chem

Group's CSR Framework to manage and report company's

CSR performance in a tangible way and in consistent with our

CSR Strategy.

�����2��5575PTT Chem Group is focusing on presenting material issues which

reflect the company's significant economic, environmental

and social impact that would substantively affect the perception

of company. Guidance from GRI G3 was adopted in developing

the approach to define these material issues. In this Sustainability

Report, PTT Chem Group provides our position and strategy

around the following key sustainability topics of relevance to

PTT Chemical the industry.

�������#��%&�&�! ������������������

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Page 111: PTTCH: Sustainability Report 2010

Relevance of PTT Chem Group CSR Framework and Material

Issues

• Environmental Management

- Energy efficiency

- Water resource management

• Organizational governance

- Execution of sustainability strategy in accordance

with international guidelines

• Product Stewardship

- Green and clean innovation

- Business expansion responding to customers

demanding on bioplastic

• Stakeholder Engagement and Social Investment and

Community Development

- Partnership program between communities and

industries

�����2�!��555PTT Chem Group aims to ensure that the information we publish

is accurate, complete and material and therefore contributes

to building trust and credibility with key stakeholders. To achieve

this, the contents for the report are prepared using material

drawn from a number of data owners including research and

technology; safety, health and environment; operations; human

resources; risk ; corporate governance and finance. The PTT

Chem Group CSR Committee reviews and approves proposals

for content, direction and accuracy of the data.

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(Partnership Program)

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Sustainability Report 2010PTT Chemical Public Company Limited 102

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,� ����� ��,��1+�����2�>J��� �� � !+���� !��+����#1�

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PTT Chem Group is developing the Third-party CSR Verification

Program to verify CSR governance, business conduct and

stakeholder inclusiveness. The result is expected to be reported

to the PTT Group Corporate Social Responsibility Committee

within the third quarter of 2011 and will be available in the

next year Sustainability Report.

Moreover, PTT Chem Group and PTT Group are expected

to conduct CSR Assurance Program in compliance with the

10 Elements of the PTT Group Corporate Social Responsibility

Framework in 2011 and the result is expected to be reported

to the committee within the second quarter of 2012.

����This report includes economic, social and environmental

performances during the period 1 January 2010 - 31 December

2010, of PTT Chemical Public Company Limited and our subsidiary,

and excludes our joint ventures, business partners and contractors,

except, on a case by case significant, when they are directly

under the management of PTT Chemical or where their

operations might cause significant impacts on the CSR

performance of the group.

However, information on environmental and social responsibility

activities in the 2010 report does not cover those activities of

all the companies of PTT Chem Group as there are inherent

limitations due to variation in data collection system of the

economic, social, safety and environmental indicators

among the companies in PTT Chem Group. PTT Chem Group

recognizes that our data will be affected by those limitation

and continue to improve the integrity of our data by

strengthening and standardizing our internal data collection

system, in order to make the disclosure of information more

complete and more consistent to GRI indicators in future.

It should be note that environmental performance reported

in 2010 Sustainability Report could be varied from previous

year report, because the organization is improving the data

management to be in line with PTT Group procedure.

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G3 Profile

Disclosures

Report

Application Level

Report on:1.12.1-2.103.1-3.8, 3.10-3.124.1-4.4, 4.14-4.15

Not Required

*Sector supplement in final version

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Management ApproachDisclosures for eachIndicator Category

Management ApproachDisclosures for eachIndicator Category

Report on a minimum of 10Performance Indicators,including at least one fromeach of; Economic, Socialand Environmental.

Report on a minimum of 20Performance Indicators, atleast one from each ofEconomic, Environmental,Human rights, Labour,Society, ProductResponsibility.

Report on each core G3 andSector Supplement*Indicator with due regard tothe Materiality Principle byeither: a) reporting on theIndicator or b) explaining thereason for its omission

Report on all criteria listedfor Level C plus;1.23.9, 3.134.5-4.13, 4.16-4.17

Same as requirement forLevel B

C C+ B B+ A A+

G3 Management

Approach

Disclosures

G3 Performance

indicators &

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Sustainability Report 2010PTT Chemical Public Company Limited 104

Page 114: PTTCH: Sustainability Report 2010

���'�������#��%&�&�! (GRI Content Index – Global Compact)

1. Strategy and Analysis

CEO statement

Description of key impacts, risks and opportunities

1.1

1.2

2-4

25-26, 21

Statement of

Continuing support

-

2. Organizational Profile

Name of the organization

Primary brands, products and services

Operational structure

Headquarter location

Countries of operation

Nature of ownership and legal form

Market served

Scale of the reporting organization

Significant changes during the reporting period

regarding size, structure or ownership

Awards received in the reporting period

2.1

2.2

2.3

2.4

2.5

2.6

2.7

2.8

2.9

2.10

14

11-12

20

115

37-38, 97

99-100

Website:

Business

Structure,

Organization

Structure,

Subsidiaries &

Affiliates

Website:

Contact Us

Website:

Contact Us

Website:

History,

Business

Structure

Websites:

Business

Sectors,

Market

Served

Website:

Milestone

-

Indicator Description Sustainability Report Others UNGC Principles

Indicator Description Sustainability Report Others UNGC Principles

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Page 115: PTTCH: Sustainability Report 2010

3. Report Parameters

Reporting period

Date of most recent previous report

Reporting cycle

Contact

Process for defining report content

Boundary of the report

Limitations on the scope or boundary of the report

Basis for reporting on joint ventures, subsidiaries, leased

facilities, outsourced operations, and other entities

that could affect comparability

Data measurement techniques and the bases of

calculations, including assumptions and techniques

underlying estimations applied to the compilation of

the Indicators and other information in the report.

Explain any decisions not to apply or to substantially

diverge from the GRI Indicator Protocols

Explanation of the effect of any restatements of

information provided in earliers reports

Significant changes from previous reporting periods

in the scope, boundary or measurement methods

applied in the report

GRI content index

Policy and current practice with regard to seeking

external assurance for the report.

3.1

3.2

3.3

3.4

3.5

3.6

3.7

3.8

3.9

3.10

3.11

3.12

3.13

103

101

105

101-102

103

103

103

51, 94, 101

103

103

105-104

103

(9/27/2010)

-

Indicator Description Sustainability Report Others UNGC Principles

4. Governance, Commitments and Engagement

Governance Structure

Whether the chair of the board of directors is also

an executive officer

Percentage of the board of directors that are

independent or non-executive directors

Mechanisms for shareholders and employees to provide

recommendations or direction to the board of directors

4.1

4.2

4.3

4.4

19-20

19-20

75-76

Website:

Board of Directors

Principles 1-10

Indicator Description Sustainability Report Others UNGC Principles

Sustainability Report 2010PTT Chemical Public Company Limited 106

Page 116: PTTCH: Sustainability Report 2010

Linkage between compensation for members of

the highest governance body, senior managers

and executives (including departure arrangements),

and the organization's performance (including social

and environmental performance)

Processes in place for the highest governance body

to ensure conflicts of interest are avoided

Process for determining the qualifications and expertise

of the members of the highest governance body for

guiding the organization's strategy on economic,

environmental and social topics

Internally developed statements of mission or values,

codes of conduct and principles relevant to economic,

environmental and social performance and the status

of their implementation

Procedures of the highest governance body for

overseeing the organization's identification and

management of economic, environmental and social

performance, including relevant risks and opportunities,

and adherence or compliance with internationally

agreed standards, codes of conduct and principles

Processes for evaluating the highest governance

body's own performance, particularly with respect

to economic, environmental and social performance

Precautionary approach

Agreements, principles or external initiatives on

economic, environmental and social aspects

Memberships in associations and national/international

advocacy organizations

List of stakeholder groups engaged by the organization

The basis for identifying and selecting stakeholders

with whom to engage

Approaches to stakeholder engagement

Key topics and concerns that have been raised

through stakeholder engagement

4.5

4.6

4.7

4.8

4.9

4.10

4.11

4.12

4.13

4.14

4.15

4.16

4.17

32

19

18, 28, 29

20

32

32-33

6, 44, 46, 66

83

75-76

75-76

75-76

77

CG 28-39

CG 17

Principle 7

Principles 1-10

Sharing the COP

with the Company’s

Stakeholders

Indicator Description Sustainability Report Others UNGC Principles

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5. Performance Indicators

Management Approach EC

Economic Performance

Market Presence

Indirect Economic Impacts

39-40, 81-82, 86

38-40

51

71

40

71

85-86

97

81-82

81-82

Website:

Analyst Briefing

Principles

1, 4, 6, 7

-

Principle 7

-

Principle 1

-

Principle 6

-

Economic performance, Market presence

and Indirect economic impacts

Direct economic value generated and

distributed, including revenues, operating

costs, employee compensation, donations

and other community investments, retained

earnings and payments to capital providers

and governments

Financial implications and other risks and

opportunities for the organization's activities

due to climate change

Coverage of the organization's defined

benefit plan obligations

Significant financial assistance received from

government

Range of ratios of standard entry level wage

compared to local minimum wage at

significant locations of operation

Policy, practices and proportion of spending

on locally-based suppliers at significant

locations of operation

Procedures for local hiring and proportion of

senior management hired from the local

community at significant locations of operation

Development and impact of infrastructure

investments and services provided primarily

for public benefit through commercial, in-kind,

or pro bono engagement

Understanding and describing significant

indirect economic impacts, including the

extent of impacts

ItemSustainability

Report OthersUNGC Principles

Economics

DMA EC

EC1

EC2

EC3

EC4

EC5

EC6

EC7

EC8

EC9

Sustainability Report 2010PTT Chemical Public Company Limited 108

Page 118: PTTCH: Sustainability Report 2010

Management Approach EN

Materials

Energy

Water

Emissions, Effluents

and Waste

40, 46, 47-48,

49-52, 53-54,

56-57, 60, 62, 86

91, 93

91, 93, 95

91, 93, 95

49-50

56

49-50

47-48, 91,93

47-48

48, 91, 93

51-52, 91, 93

51

51-52

54

53-54, 91,93

54,94

Principles

7, 8, 9

Principle 8

Principles

8, 9

Principle 8

Principles

8, 9

Principle 8

Principles

7, 8, 9

Principle 8

Materials , Energy, Water, Emissions, Effluents

and waste, Products and services, Compliance,

Transport and Overall

Materials used by weight or volume

Direct energy consumption by primary

energy source

Indirect energy consumption by primary

energy source

Energy saved due to conservation and

efficiency improvements

Initiatives to provide energy-efficient or

renewable energy based products and

services and reductions in energy requirements

as a result of these initiatives

Initiatives to reduce indirect energy consumption

and reductions achieved

Total water withdrawal by source

Water sources significantly affected by with

drawal of water

Percentage and total volume of water recycled

and reused

Total direct and indirect greenhouse gas

emissions by weight

Other relevant indirect greenhouse gas

emissions by weight

Initiatives to reduce greenhouse gas emissions

and reductions achieved

Emissions of ozone-depleting substances

by weight

NO, SO and other significant air emissions

by type and weight

Total water discharge by quality and

destination

ItemSustainability

Report OthersUNGC Principles

Environment

DMA EN

EN1

EN3

EN4

EN5

EN6

EN7

EN8

EN9

EN10

EN16

EN17

EN18

EN19

EN20

EN21

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Management Approach LA

Employment

Occupational Health

and Safety

65-67, 69-70,

72, 73-74

97-98

98

71

66

96

Principles

1, 3, 6

-

Principle 6

-

Principle 1

Employment, Labour/management relations,

Occupational health and safety, Training and

education, Diversity and equal opportunity

Total workforce by employment type,

employment contract and region

Total number and rate of employee turnover

by age group, gender and region

Benefits provided to full time employees that

are not provided to temporary or part

Percentage of total workforce represented in

formal joint management worker health and

safety committees that help monitor and advise

on occupational health and safety programs

Rates of injury, occupational diseases, lost days

and absenteeism and number of work

related fatalities by region

ItemSustainability

Report OthersUNGC Principles

Labour Practices and Decent Work

DMA LA

LA1

LA2

LA3

LA6

LA7

Emissions, Effluents and

Waste

Products and Services

Compliance

Overall

54-55, 92,94

92,94

47-48

56-57

44

40

Principle 8

Principles

7, 8, 9

Principle 8

Principles

7, 8, 9

Total weight of waste by type and disposal

method

Total number and volume of significant spills

Identity, size, protected status and biodiversity

value of water bodies and related habitats

significantly affected by the reporting

organization's discharges of water and runoff

Initiatives to mitigate environmental impacts

of products and services, and extent of

impact mitigation

Monetary value of significant fines and total

number of non-monetary sanctions for

noncompliance with environmental laws and

regulations

Total environmental protection expenditures

and investments by types

ItemSustainability

Report OthersUNGC Principles

EN22

EN23

EN25

EN26

EN28

EN30

Sustainability Report 2010PTT Chemical Public Company Limited 110

Page 120: PTTCH: Sustainability Report 2010

Occupational Health

and Safety

Training and Education

Diversity and Equal

Opportunity

81

72

72

72

97-98

71

Principle 1

-

Principles

1, 6

Education, training, counseling, prevention

and risk-control programs in place to assist

workforce members, their families or

community members regarding serious

diseases

Average hours of training per year per

employee by employee category

Programs for skills management and lifelong

learning that support the continued

employability of employees and assist them

in managing career endings

Percentage of employees receiving regular

performance and career development reviews

Composition of governance bodies and

breakdown of employees per category

according to gender, age group, minority

group membership and other indicators

of diversity

Ratio of basic salary of men to women by

employee category

ItemSustainability

Report OthersUNGC Principles

LA8

LA10

LA11

LA12

LA13

LA14

Reporting on this

disclosure is not

applicable. We report

diversity data on

employees by gender

and age group. Data

on minority employees

is not aggregated and

disabled employees

is not collected or

aggregated as this

depends on individual

wish for declaration.

PTT Chemical's

employees career

progress, compensation

and incentives are

subject to their own

quality, achievements,

attitudes and

capabilities. Therefore,

no difference between

the basic salary rates

of men and women.

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Page 121: PTTCH: Sustainability Report 2010

ItemSustainability

Report OthersUNGC Principles

Management Approach HR

Diversity and Equal

Opportunity

Non-discrimination

69-70

69

73

Principles

1, 2, 3,

4, 5, 6

Principles

1, 2, 3,

4, 5, 6

Principles

1, 2, 6

Non-discrimination, Freedom of association

and collective bargaining, Child labour, Forced

and compulsory labour, Security practices

Total hours of employee training on policies

and procedures concerning aspects of human

rights that are relevant to operations, including

the percentage of employees trained

Total number of incidents of discrimination

and actions taken

ItemSustainability

Report OthersUNGC Principles

Human Rights

DMA HR

HR3

HR4

Freedom of Association

and Collective Bargaining

Child Labour

Forced and Compulsory

Labour

Security Practices

73

73

73

73

Principles

1, 2, 3

Principles

1, 2, 5

Principles

1, 2, 4

Principles

1, 2

Operations identified in which the right to

exercise freedom of association and collective

bargaining may be at significant risk and

actions taken to support these rights

Operations identified as having significant

risk for incidents of child labour and measures

taken to contribute to the elimination of

child labour

Operations identified as having significant

risk for incidents of forced or compulsory

labour and measures to contribute to the

elimination of forced or compulsory labour

Percentage of security personnel trained

in the organization's policies or procedures

concerning aspects of human rights that

are relevant to operations

HR5

HR6

HR7

HR8

Requirement regarding

the Board’s and

President’s

Compensation is

provided in page 25

of CG Handbook.

Sustainability Report 2010PTT Chemical Public Company Limited 112

Page 122: PTTCH: Sustainability Report 2010

Management Approach SO

Community

Corruption

Public Policy

29-31, 78

77-78, 85

31

29

29

44

Principle 10

-

Principle 10

Principles

1-10

Community, Corruption, Public policy,

Anti-competitive behaviour, Compliance

Nature, scope and effectiveness of any

programs and practices that assess and

manage the impacts of operations on

communities, including entering, operating

and exiting

Percentage and total number of business

units analyzed for risks related to corruption

Percentage of employees trained in

organization's anti-corruption policies and

procedures

Actions taken in response to incidents of

corruption

Public policy positions and participation in

public policy development and lobbying

ItemSustainability

Report OthersUNGC Principles

Society

DMA SO

SO1

SO2

SO3

SO4

SO5

Management Approach PR

Customer Health & Safety

59-60, 52-53,

59-60

56-57

CG 52-53 Principles

1, 8

Principle 1

Customer health and safety, Product and

service labeling, Marketing communications,

Customer privacy and Compliance

Life cycle stages in which health and safety

impacts of products and services are assessed

for improvement and percentage of

significant products and services categories

subject to such procedures

ItemSustainability

Report OthersUNGC Principles

Product Responsibility

DMA PR

PR1

Public Policy

Anti-competitive Behaviour

Compliance

30

31

31

Principle 10

-

Total value of financial and in-kind

contributions to political parties, politicians

and related institutions by country

Total number of legal actions for anti-

competitive behaviour, anti-trust and

monopoly practices and their outcomes

Monetary value of significant fines and total

number of non monetary sanctions for non-

compliance with laws and rogulations

SO6

SO7

SO8

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Page 123: PTTCH: Sustainability Report 2010

Marketing Communications

Customer Privacy

Compliance

58-60

60

60

60

Principle 1

Principle 8Programs for adherence to laws, standards,

and voluntary codes related to marketing

communications, including advertising,

promotion and sponsorship

Total number of incidents of non-compliance

with regulations and voluntary codes

concerning marketing communications,

including advertising, promotion and

sponsorship by type of outcomes

Total number of substantiated complaints

regarding breaches of customer privacy

and losses of customer data

Monetary value of significant fines for

non-compliance with laws and regulations

concerning the provision and use of products

and services

ItemSustainability

Report OthersUNGC Principles

PR6

PR7

PR8

PR9

Product and Service

Labeling

60

59

60

59

Principle 1

Principle 8

-

Total number of incidents of non-compliance

with regulations and voluntary codes

concerning health and safety impacts of

products and services during their life cycle,

by type of outcomes

Type of product and service information

required by procedures, and percentage of

significant products and services subject to

such information requirements

Total number of incidents of non-compliance

with regulations and voluntary codes

concerning product and service information

and labeling, by type of outcomes

Practices related to customer satisfaction,

including results of surveys measuring

customer satisfaction

PR2

PR3

PR4

PR5

-��-"�

UNGC : United Nations Global Compact

CG : �1����������(�1!+�����������!+�����(��8������

,��1+��������+�� ��(��*��*�/��� GRI G3

,��1+��������+�� (� ������(��*��*�/��� GRI G3

Remark

UNGC : United Nations Global Compact

CG : Corparate Governance Code of Conducts Handbook

The data is corresponded with GRI G3 Guideline

The data is partially corresponded with GRI G3 Guideline

Sustainability Report 2010PTT Chemical Public Company Limited 114

Page 124: PTTCH: Sustainability Report 2010

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�+��(��>�� %"�. �����+ http://www.pttchemgroup.com

��������-���25For more information, please refer to 2010 Annual Report or

please contact the Corporate Social Responsibility Department

of PTT Chemical Public Company Limited at Energy Complex,

Building A, 15th - 18th Floors, 555/1 Vibhavadi Rangsit Road,

Chatuchak, Bangkok 10900, Thailand.

Telephone: +66 (0) 2265 8400

Fax: +66 (0) 2265 8500.

PTT Chemical CSR Report may be downloaded through

PTT Chemical’s website (http://www.pttchemgroup.com).

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PTT Chemical Public Company LimitedA Company of PTT Group

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

This report has been printed on environmental friendly paper containing HDPE and made from non-wood pulp with no air and water pollution generated.

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