Highlight: Climate Action

1. Driving Business

Climate change remains a topic of interest across various sectors, from the national to the international level, due to its increasingly severe impacts. This is coupled with the intensification of measures being introduced, as well as the growing drive to foster collaboration in response to the global climate change goals.
OR, as a leading player in the oil and retail business, recognizes the undeniable significance of climate change to both the organization and stakeholders throughout the value chain. Therefore, the strategy and operational plan for OR SDG (Small, Diversified, Green) – creating a sustainable future in OR’s style – have been established in order to effectively achieve the OR 2030 Goals. By creating opportunities for a clean society and promoting green businesses for a sustainable environmental future, OR is committed to supporting a sustainable low-carbon society and achieving carbon neutrality by 2030 and net-zero emissions by 2050. OR aims to be part of the solution and reduce the impact of climate change through its business operations.

This is Our Giving Priority

Climate change is integrated as part of the Key Performance Indicators (KPIs) for the Chief Executive Officer and senior executives. It is also one of the organizational goals (OR 2030 Goals) within the “Healthy Environment” dimension, accounting for 4% of the total KPIs. This includes the reduction of greenhouse gas emissions under Scope 1 and Scope 2. This approach underscores OR’s commitment to ensuring that climate-related issues are incorporated into management practices, with regular evaluation and monitoring.

Opportunities and Challenges

OR, as an oil and retail business and the flagship company of the PTT Group, is seeking new opportunities in business while inventing and developing the quality of products and services. Therefore, the Company shall adapt to keep pace with the transition to a low-carbon society, in line with Thai and international policies, to jointly reduce greenhouse gas emissions. This includes increasing the proportion of renewable energy use or exploring alternatives with lower greenhouse gas emission technologies, such as creating EV Station Pluz network, influencing consumer behavior to choose Low Carbon Coffee, and preparing plans to address potential physical and transition risks in the future. All of these aspects pose both challenges and opportunities for OR to expand its business while enhancing the brand’s identity to attract environmentally-conscious investors who support sustainable businesses.

Operation strategy

OR is formulating a Climate Strategy based on 3Rs Strategy (Reduce. Remove, Reinforce) and establishing a clear framework for overseeing climate change, as well as the assessment of risks and opportunities related to climate change issues. This includes conducting a Climate Scenario Analysis based on the guidelines of the Task Force on Climate-related Financial Disclosure (TCFD). The aim is to understand both Physical Risks and Transition Risks in order to progress towards the Net Zero Emissions target, which involves referencing the principles outlined by the Science-Based Target Initiative (SBTi).

2. Long-term Targets

3. Outstanding projects and performance

Reduce Own Greenhouse Gas Emissions

Advancing toward the OR Net Zero goal by reducing own greenhouse gas emissions.

Solar Panel

According to OR 2030 Goals -Healthy Environment, OR push the effort for an increasing in the proportion of renewable energy usage within business establishments, such as the installation of solar rooftops in areas for instance, PTT Stations, OASYS business centers, petroleum terminals/oil depots, LPG cylinder refurbishing plant, Café Amazon, and office buildings, etc. From 2022 to 2024, the cumulative number of installations is 228 locations, with plans to expand to other branches continuously.

OR promotes the installation of Solar Rooftops for Dealer/Franchise customers.

In addition to installing solar rooftops at OR’s establishments to increase the share of renewable energy, OR also supports and encourages its dealers at PTT Stations and customers in various industries to install solar rooftops. This initiative aims to reduce reliance on electricity generated from conventional fuels and transition to renewable energy, thereby contributing to the reduction of indirect greenhouse gas emissions across the value chain (Scope 3 GHG Emissions). Currently, the performance is as follows:

Remove Residual Greenhouse Gas Emissions

Remove greenhouse gases by supporting carbon capture activities.

10,000 rai OR’s reforestation project

OR is committed to achieving carbon neutrality and net zero greenhouse gas emissions by 2050 while conserving nature and protecting the environment. OR has set a target to reforest 10,000 rai under Thailand’s voluntary greenhouse gas reduction program (T-VER) by 2030 in collaboration with the Royal Forest Department in Chiang Rai and Phayao provinces. As of 2024, OR has successfully reforested and maintained 1,500 rai, with 280 rai officially registered under the T-VER program. These reforested areas contribute to offsetting the organization’s greenhouse gas emissions, supporting the achievement of its carbon neutrality and net zero goals.

In addition, OR is implementing a community forest maintenance project in collaboration with the Mae Fah Luang Foundation. This initiative provides funding to local communities for the care and preservation of community forests, covering a total area of 8,100 rai across four provinces: Chiang Mai, Chiang Rai, Amnat Charoen, and Yasothon. The carbon credits generated from this project will be used to offset OR’s greenhouse gas emissions.

10,000 rai OR’s reforestation project

Reinforce Green Portfolio of Business and Investment

Expand the proportion of green or low-carbon business and investment.

PTT Green Station – PTT Station Flagship Vibhavadi 62

PTT Station Flagship Vibhavadi 62 is designed under the “Green” concept to be a future prototype of Green Station that expresses itself through OR’s business network ecosystem.

PTT Station Flagship Vibhavadi 62

One important highlight of G-GREEN is that it serves as a pilot area using 100% renewable energy, which includes the installation of a solar rooftop with a generation capacity of 584 kWp, along with a battery energy storage system (BESS) with a capacity of 160 kWh to increase energy efficiency. This is a joint development between OR and Nuovo Plus. Furthermore, by purchasing renewable energy in the form of Renewable Energy Certificates (REC) to confirm the use of renewable energy, OR ensures that the energy used at its service stations is 100% renewable. Additionally, Café Amazon has implemented store designs that enhance energy efficiency and environmental friendliness across multiple dimensions. As a result, Café Amazon has received the Leadership in Energy and Environmental Design (LEED) Gold certification.

Solar Rooftop, Battery Energy Storage System, and LEED Certification of Café Amazon.

In addition, there are other important operations involved to help support and promote the reduction of greenhouse gas emissions (Scope 3) within the PTT Station flagship Vibhavadi 62, including:
Comprehensive waste management, such as recycling 100% of used lubricating oil and oil pails/gallons from FIT Auto into bench chairs at PTT Stations made from a blend of recycled PE plastic, the same material used for oil pails/gallons. Additionally, food waste from retail stores is collected and processed through an automatic food waste composter to produce organic fertilizer for further use. Waste collected from Yak Lak Yim” project and retail stores are recycled for proper management through the “Yak Lak Yim x GC You Turn” project. Furthermore, investments have been made in the installation of an Ultra Filtration wastewater recycling system that operates without the use of chemicals. The recycled water meets US EPA standards and is suitable for purposes such as watering plants.
An overview of additional businesses at the PTT Station Flagship on PTT Station flagship Vibhavadi 62 highlights efforts to support the energy transition. These include the installation of EV Station Pluz and Swap & Go, a battery-swapping service that eliminates charging waiting times. This service is designed to accommodate the growing number of electric motorcycle users, enabling quick battery swaps for faster journeys. These initiatives serve as a model for future energy innovations that are environmentally friendly, driving Thailand toward a sustainable electric vehicle society.

A collaborative project for the development and investment in the production of Sustainable Aviation Fuel (SAF).

The aviation industry is a major contributor to greenhouse gas emissions and faces challenges in reducing carbon emissions from its operations. In response to the need to decrease greenhouse gas emissions in the aviation sector, as referenced by the International Civil Aviation Organization (ICAO). Therefore, the transition to sustainable aviation fuel (SAF) has become a key global focus.
Sustainable Aviation Fuel (SAF) is a type of fuel with chemical properties similarly to conventional aviation fuel or jet fuel. SAF can be blended with jet fuel for use in aircraft without the need for engine modifications or adjustments. This helps reduce greenhouse gas emissions, marking a significant step toward the adoption of clean energy in the aviation industry.
OR as a market leader in Thailand’s aviation industry and an energy solution provider, has adapted and is advancing toward becoming the national leader in Sustainable Aviation Fuel (SAF). The company is also developing a strong infrastructure, which includes seven aviation depots and over 12 aviation fueling stations across the country. All operations adhere to the internationally recognized JIG Standard. In 2024, OR applied for the International Sustainability & Carbon Certification (ISCC), specifically the ISCC EU standard, to ensure the sale of SAF in compliance with relevant regulations. Additionally, from 2023 to 2024, SAF was tested on pilot flights covering major airports, tourist cities, and international routes, including Thai Airways on the Phuket–Bangkok route, Bangkok Airways on the Samui–Bangkok route, and Thai VietJet Air on the Bangkok–Da Nang route.
Moreover, in 2024, OR partnered with GC to explore market opportunities and sales strategies for SAF, as well as to jointly develop sustainable product innovations and technologies for SAF blending. This collaboration marks the first use of the Co-Processing process in the aviation industry. The initiative aims to strengthen the petrochemical and oil businesses, align with the mandatory SAF policy, and support Thailand’s sustainable aviation industry.

Image of collaboration with airlines for the use of Sustainable Aviation Fuel (SAF)

Green Logistics Collaboration

OR has adjusted its coffee transportation process for Café Amazon by testing a long-haul transportation system using EV trucks, making it the first of its kind in Thailand. The EV truck will transport raw coffee beans from OR’s warehouse in Mae Wang District, Chiang Mai Province, to the warehouse at the OASYS lifestyle business centers of Café Amazon in Wang Noi District, Ayutthaya Province. This trial aims to test the technological feasibility and business viability by utilizing the EV Station PluZ network along the ‘Green Coffee Bean Route’ as charging points for the transportation trucks. A collaboration agreement has been signed with WICE to lead the use of electric vehicles in goods transportation activities, thereby contributing to a efficient reduction in carbon dioxide emissions. This initiative is part of creating a model for transforming the entire business value chain into a green ecosystem, encompassing OR’s operations and the development of the coffee ecosystem from upstream to downstream.

Additionally, OR has also adjusted the transportation process for bakery products from the factory to Café Amazon stores in the central and other regions nationwide to be eco-friendly through a Green Logistics Solution. This involves using an innovative cold-chain transportation that helps reduce energy consumption, in collaboration with SCG JWD Logistics Public Company Limited (SCGJWD), to meet the needs of temperature-controlled goods transportation across the country.

Circular Economy project as part of the collaboration to reduce greenhouse gas emissions.

An example of a project related to the principles of the circular economy that OR is implementing in 2024 is the PTT Lubricants project, which delivers the first set of school desks from the ‘Save the World, Save the Car for the Future’ campaign to Ban Pha Nang School in Mae Chaem District, Chiang Mai Province. This initiative involves repurposing used Performa Synthetic Eco Car lubricant gallons, collected from oil change services at FIT Auto. The used containers, made from PCR plastic pellets, undergo an upcycling process, transforming into Wood Plastic Composite material to produce durable school desks and chairs. These items are then donated to schools in underprivileged areas, with the first donation going to Ban Pha Nang School in Mae Chaem District, Chiang Mai Province.
Currently, the ‘Save the World, Save the Car for the Future’ project, which involves donating student desks made from used lubricants gallons collected from FIT Auto service centers and processed through upcycling, has already delivered these desks to 5 schools in underprivileged areas. A total of 100 sets of desks have been donated, resulting in a reduction of greenhouse gas emissions about 1,600 kilograms of carbon dioxide equivalent.

Thailand Voluntary Emission Reduction Program (T-VER) in collaboration with the Thailand Greenhouse Gas Management Organization

In addition, OR has developed various projects to reduce greenhouse gas emissions under the Thailand Voluntary Emission Reduction Program (T-VER) in collaboration with the Thailand Greenhouse Gas Management Organization. In 2024, the registration of activities related to the T-VER project has been carried out, including the following:
1. Promotion of Fuel Switching from Gasoline/Diesel Based Fuel to Blended Biofuels by PTT Oil and Retail Business Public Company Limited
2. Solar Rooftop Project (Phase 1) by PTT Oil and Retail Business Public Company Limited

3. Solar Rooftop Project (Phase II) by PTT Oil and Retail Business Public Company Limited

4. Voluntary Greenhouse Gas Emission Reduction Program (T-VER) in the Forestry and Green Area of Chiang Rai and Phayao Provinces by PTT Oil and Retail Business Public Company Limited and the Royal Forest Department.

Carbon Footprint of Products (CFP) label and Carbon Footprint Reduction (CFR) label

In 2024, OR received certification for the Carbon Footprint of Products (CFP) label for 12 items and the Carbon Footprint Reduction label (CFR), or the ’Reduced Global Warming Label,’ for 3 items from the Thailand Greenhouse Gas Management Organization (TGO). This certification reflects OR’s commitment to operating under the OR SDG framework, particularly the G – GREEN dimension, which focuses on creating clean societal opportunities by driving all of OR’s businesses to be green. The Café Amazon products certified with the CFP label include Iced Black Coffee, Roasted Whole Bean Coffee, Drip Coffee, Flavored Drip Coffee, Coffee Capsules, and Flavored Coffee Capsules, totaling 12 items. In addition, 3 products were recognized for significantly reducing greenhouse gas emissions by more than 2% from the baseline year, meeting the CFR criteria. These products include Café Amazon Drip Coffee Signature, Café Amazon Coffee Capsule Amazon Signature, and Café Amazon Coffee Capsule Amazon Selected, with these three products reducing greenhouse gas emissions by over 13% for drip coffee and more than 30% for coffee capsules, respectively.

Low Emission Support Scheme (LESS) Project

To support activities aimed at reducing and absorbing greenhouse gases at PTT Station, OR has implemented a project to assess the greenhouse gas absorption of trees at 8 COCO PTT Stations. The project received a certificate of recognition under the Low Emission Support Scheme (LESS) from the Thailand Greenhouse Gas Management Organization (TGO) on 28 August 2024.

PTT Group Green for Life

In 2024, OR applied for the environmental label under the PTT Green for Life brand, developed according to the international standard ISO-14021: 2016, to ensure that OR’s business operations are environmentally friendly and to support OR’s sustainability efforts. The services that received the PTT Green for Life label include 80 fuel stations and 3 LPG cylinder refurbishing plants. The environmental aspects that received certification consist of 5 key areas as follows:

Reduced Energy Consumption
Reduced Water Consumption
Waste Reduction
Renewable Energy Usage
Greenhouse Gas Reduction

4. Award and Recognitions

1. OR is a member of the Thailand Business Council for Sustainable Development, actively contributing to driving Thailand’s sustainability policies. This demonstrates OR’s commitment to sustainability efforts, aiming for a low-carbon society and becoming a net-zero greenhouse gas organization by 2050.

2. OR is part of the Energy Conservation Network activity, ‘Energy Beyond Standard 2024,’ to actively cooperate in energy conservation. This initiative aims to generate long-term interest in energy conservation, leading to the creation of a network for consultation and support in reducing energy usage. It provides a platform for collaboration to promote effective energy conservation within buildings and factories. In addition to achieving energy savings, it also helps reduce greenhouse gas emissions and supports Thailand’s climate change policies to achieve carbon neutrality by 2050 and net-zero greenhouse gas emissions by 2065.