Climate Action

Importance

(GRI 3-3a., GRI 3-3b., GRI 3.3e.)

Climate change is currently a major challenge that significantly impacts human life, the environment, and economic development, with its effects becoming increasingly severe worldwide. According to the Global Risks Report 2024 by the World Economic Forum, environmental risks are ranked among the most critical global risks expected to intensify over the next decade. The most significant risk identified is extreme weather events.
Consequently, this issue has led to more intensive efforts in responding to climate change, particularly through enhanced cooperation among various sectors in setting targets and frameworks for action. This includes initiatives such as the 29th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP 29), which aligns with the Paris Agreement, as well as national commitments. Thailand, as a party to the agreement, has pledged its Nationally Determined Contribution (NDC) to reducing greenhouse gas emissions and engaging with the global community on climate action. Additionally, there is increasing pressure from the financial sector and stakeholders on businesses and industries to take action in reducing greenhouse gas emissions. This includes efforts toward decarbonization within the value chain to minimize or eliminate carbon emissions.
OR recognizes the impact and severity of climate change and, as a responsible global citizen, has declared its commitment to conducting business sustainably. The company is dedicated to addressing climate change through the OR SDG framework, particularly under the “G-GREEN” pillar, which promotes environmentally friendly businesses and supports the transition toward a sustainable low-carbon society. Through its climate change strategy, OR aims to achieve carbon neutrality by 2030 and ultimately reach net-zero greenhouse gas emissions by 2050.

2024 Targets

(GRI 3-3e.)

Management Approach

(GRI 3-3c., GRI 3-3d., GRI 3-3e., GRI 3-3f)

The impacts of climate change have intensified on a global scale. In response, OR recognizes these challenges and has integrated climate action into its long-term strategic goals under the OR 2030 Goals, specifically within the Healthy Environment dimension. OR has established a climate change management approach aligned with the Task Force on Climate-related Financial Disclosures (TCFD) framework. This includes the appointment of a dedicated climate governance body, the formulation of strategic action plans, risk assessment and management, as well as the establishment of targets and relevant performance indicators.

Climate Change Governance

Additionally, OR has established a climate governance structure with clearly defined roles and responsibilities to drive and oversee climate change management in a tangible and effective manner. The details of OR’s climate governance roles and structure are as follows:

Governance Structure	Roles and Responsibilities	Meeting Frequency
OR Board of Directors	Govern the business operations to follow the workplan and approve the Corporate KPI related with climate change issue with internal department. Monitor the progress of climate change strategy and Key Action Plans to comply with company policies.	Quarterly
Corporate Governance and Sustainability Committee (OR CGS)	Define and review climate change policies and action plans, while monitoring results. This also includes integrating the implementation of climate change strategies to ensure alignment with the company’s key policies. Oversight the implementation of Climate Risk Strategy and opportunities at the operational level.	Quarterly
Enterprise Risk Management Committee (OR ERMC)	Responsible for defining comprehensive key risk management policies and practices, which include climate-related risks. Assess and review risks, considering both internal and external factors which may affect the achievement of corporate goals. This is to ensure that appropriate measures for tackling climate change, based on OR business context, have been put in place.	Quarterly
Management Committee (ORMC)	Manage and ensure the direction of the operations to be sustainable. Top leadership support and sponsorship are key pre-requisites contributing to the success of the whole process.	As needed
Sustainability Development Committee (OR SD Committee)	Drive and monitor the operations of relevant departments to support implementation of the sustainability strategy and consider approving the annual OR sustainable development progress/report. Responsible for approving OR’s strategic plans, business plans, and action plans for sustainability which complies with the PTT Group policies in national and international sustainability standards.	Quarterly
Taskforces (Energy, Decarbonization, Circular Economy)	Promote and drive actions and Implementations from the policy level to the working group or operational level in particular scope of consideration for achieving OR’s 2030 Goal in Healthy Environment Strategy and implementation of TCFD framework.	Quarterly or As needed

Climate Change Strategy

To reduce greenhouse gas emissions from its operations and achieve carbon neutrality by 2030 and net-zero emissions by 2050, OR has set its targets based on the Science-Based Targets (SBT) approach. The company has also adopted a strategic framework based on the 3Rs principle, which includes the following key initiatives:

Reduce (Own Greenhouse Gas Emissions): Moving towards the OR Net Zero goal by reducing own greenhouse gases emissions.
Remove (Residual Greenhouse Gas Emissions): Eliminating greenhouse gases by supporting greenhouse gas capture activities.
Reinforce (GREEN Portfolio of business and Investment): Expanding the portion of green portfolio and green investment.

OR has established Key Performance Indicators (KPIs) for climate change management and integrated them into the company’s Corporate KPIs. Additionally, OR continuously monitors, analyzes, and improves its performance while regularly reporting progress to the PTT Group.

In addition to its climate change strategy, OR has established a partner and customer management approach to ensure comprehensive climate action across the entire value chain (Upstream & Downstream Management). This approach includes the following key initiatives:

Encouraging both upstream and downstream partners to adopt effective climate change management practices.
Communicating OR’s commitment and concerns regarding climate change to stakeholders across the value chain.
Ensuring OR’s adaptability and resilience in managing climate-related risks while seizing opportunities associated with the transition to a low-carbon society within the value chain.

Climate-related Risk Management

Climate change impacts are spotted by consumers focusing, affects to consumer behavior changing and climate-related laws and regulations is changed such as carbon taxes. Consequently, OR puts the emphasize on climate-related risks which can affect the business operation. This is done by integrating the climate-related risks into enterprise risk management. This is to access the severity level and provide mitigation options to mitigate those risks and seeking opportunities in innovation or strategic developments to increase the business values. OR sets out the key action plans by studying the requirements, regulations continuously to manage those risks and opportunities. In addition, we also study the economic trends from national and international contexts, including Internal carbon pricing and new innovations etc.
Additionally, OR conducts assessments of both physical risks and transition risks, utilizing qualitative and quantitative analyses. These assessments cover OR’s own operations as well as the entire value chain from upstream to downstream. Detailed information about these risk assessments can be found in the OR Task Force on Climate-related Financial Disclosures (TCFD)

Setting targets and indicators

OR is committed to fostering a healthy environment by actively reducing greenhouse gas emissions. The company has set ambitious targets to reduce direct (Scope 1) and indirect (Scope 2) greenhouse gas emissions by one-third from its 2022 baseline by 2030. Additionally, OR is dedicated to achieving carbon neutrality by 2030 and ultimately reaching net-zero emissions by 2050.

Therefore, OR has key action plans as shown in the following:
1. Climate Change Management

- Reforestation project of 10,000 rai within 2030.
- T-VER Carbon Credit Project from solar rooftop and green travel with biofuel.

2. Energy & Utilities Efficiency

- Since OR uses electricity as its majority source of energy, the company aims to increase the proportion of renewable energy in its establishments by requiring the installation of solar rooftops at establishments such as petroleum terminals, lifestyle business centers (OASYS), PTT Station, Café Amazon, LPG cylinder refurbishing plants, and Office building to provide 20.04 MWp by 2030.
- 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).
- Procure renewable energy externally through Renewable Energy Certificates (RECs) to increase the proportion of renewable energy.

3. Wastes Reduction Alignment with the Circular Economy Principle

- Reducing waste, minimizing the use of virgin materials, and promoting reuse and recycling to decrease greenhouse gas emissions from production and disposal processes.
- Increase the use of environmentally friendly materials and sustainable packaging.
- For more details on the company’s circular economy management, click

Performances

Low Carbon Society

OR has also made it a mission to achieve a low-carbon society. OR is registered in the Thailand Voluntary Emission Reduction Program (T-VER) by the Thailand Greenhouse Gas Management Organization (Public Organization), or TGO, which certifies the amount of greenhouse gases that OR has reduced or stored. In 2024, OR is in the process of developing T-VER projects, as shown below:

Promotion of Fuel Switching from Gasoline/Diesel Based Fuel to Blended Biofuels Project (Green Travel with Biofuel Project): OR has promoted and supported the use of biofuels by implementing the Green Travel with Biofuel project to invite customers to switch the use of biofuels as a replacement for conventional fuels. This helps reduce greenhouse gas emissions from the transportation sector. The project, which continued from 2023 and is now open for Blueplus+ customers to register for the second year in 2024.
Solar Rooftop Installation Project (Phase I, II, III): OR has driven the installation of Solar Rooftops at its establishments and those of its dealers to promote clean energy usage. Additionally, these projects have been registered as T-VER projects to seek future carbon credit certification.
Forest Planting Project: OR aims to expand green areas to serve as carbon absorption. OR has encouraged the registration and certification of this project. To date, OR has planted a total of 9,600 rai of forests and registered 280 rai for certification.

As one of Thailand’s leading energy businesses, OR strives to demonstrate its responsibility and contribute to the reduction and offsetting of greenhouse gas emissions both at the corporate and national levels to achieve a
low -carbon society efficiently and sustainably.

Energy Transition

Climate change and shifting economic conditions have heightened awareness of environmental issues, leading people to transition from fossil fuel consumption to clean energy to mitigate environmental impacts. As a result, electric vehicles (EVs) have emerged as a preferred alternative for consumers, gradually replacing traditional fuel-powered vehicles.
Recognizing the opportunities in the transition to electric vehicles (EVs), OR has expanded its EV Station PluZ charging network across Thailand. These charging stations are strategically located at PTT Stations and PTT LPG Auto Stations, covering major routes, communities, tourist destinations, and high-potential areas such as shopping malls, hotels, resorts, restaurants, and office buildings. As of 2024, OR has installed and launched a total of 1,194 locations nationwide or 2,356 DC connector, ensuring comprehensive coverage across the country.
Additionally, OR is focused on creating a Physical Platform to be an OR Space Community combined with OR Mobility Solutions, aiming to promote opportunities for a cleaner society. This includes expanding the network of EV Charging Stations with 10 new stations by 2024. Moreover, Charging Hubs are planned to further expand along major routes and in key areas nationwide, such as: Sikhiu Branch – Nakhon Ratchasima Province, Khanuwanlak Buri Branch – Kamphaeng Phet Province, Thasae Branch – Chumphon Province, Ruamjai Service Branch (2002) – Buriram Province, Ban Phai Branch – Khon Kaen Province, Wachirabarami Branch – Phichit Province, Chaiya Branch (Northbound) – Surat Thani Province and Jomtien Beach Branch – Chonburi province.
One of the key climate change strategies is partnerships with other organizations to promote projects that support an efficient energy transition. OR therefore collaborates with different organizations to initiate many projects, such as Swap & Go-Universal Battery Swapping Network Expansion Empowered by OR. This is achieved by expanding the network of Swap & Go electric motorcycle battery swapping station platforms that can be used with all types of electric motorcycles (Universal Swapping) within PTT stations. The project caters to consumers’ travel needs that require convenience and speed, as well as enabling seamless mobility. The project aims to expand battery swap service points to more than 100 locations in Bangkok and surrounding areas in 2024. Furthermore, there will be maintenance and repair services in the PTT Stations. The objective is to increase the proportion of use of clean energy innovations and provide a choice for consumers to save on energy costs by creating a holistic electric vehicle ecosystem. This is for the benefit of society and the environment to inclusive growth.

Meanwhile, FIT Auto, one of OR’s Non-Oil Business, emphasizes convenience through its One-Stop-Service model and is preparing for the transition. Currently, FIT Auto has established the FIT Auto Academy at the OR Academy to enhance the skills of technicians, aiming to improve their capabilities to support light maintenance services for EVs.
Additionally, OR has partnered with WICE Logistics Public Company Limited (WICE) to jointly study and develop a prototype for Green Logistics to transport raw coffee beans. This initiative involves testing a long-haul logistics system using EV Trucks, leveraging OR’s EV Station PluZ network along the “Green Coffee Bean Route” — the first of its kind in Thailand. This effort aims to position OR as a leader in adopting electric vehicles for freight transportation and serves as a pilot project aligned with its Carbon Neutrality policy. For transporting bakery from factories to Café Amazon branches in the central and other regions across country, OR has expanded its collaboration with SCGJWD Logistics Public Company Limited (SCGJWD) to enhance environmentally friendly logistics through the Green Logistics Solution. This includes introducing innovative cold-chain transportation via the largest logistics network to meet the needs of temperature-controlled goods transportation across the country.

Energy Management Program

Under the Healthy Environment dimension of the OR 2030 Goals, OR is committed to reducing conventional fuel used intensity by one-third by 2030, compared to the 2022 baseline. This will be achieved through enhancing energy efficiency and increasing the proportion of renewable energy used in OR’s operations. To support this objective, OR has established the Energy Task Force, a dedicated team responsible for promoting, supporting, driving initiatives, and sharing expertise to ensure the successful implementation of OR’s energy roadmap and the achievement of its set targets.
OR has conducted energy audits by external experts to identify opportunities for improving energy performance and has implemented energy-saving projects at OR establishments to assess and track progress in reducing energy consumption continuously since 2022. In 2024, the energy audit was expanded to include the LPG Cylinder Refurbishing Plant in Songkhla. The operational plans, progress, future plans, and budgets for these projects will be evaluated and reported to the Energy Task Force every quarter. In 2024, the Phra Khanong office building reduced energy consumption by 550 GJ (equivalent to 630,000 THB), and the lifestyle business centers (OASYS) reduced energy consumption by 5,900 GJ (equivalent to 6,850,000 THB). Together, these areas reduced OR’s total energy consumption by 2%. Examples of actions to reduce the amount of energy use and improve energy efficiency include enhancing the Building Automation System (BAS) at the Phra Khanong office. Additionally, improvements have been made to the chiller system at factories within OASYS lifestyle business centers to enhance cooling efficiency and align with production needs.

To promote and drive the achievement of OR 2030 Goal with the Healthy Environment target, OR drives the action by quantified targets to address energy savings using the QSHE Target applied to all OR’s operations, for example: energy intensity target in all establishments.
These targets reported performance and action to OR QSHE GMC Committee, quarterly. Moreover, OR set our annual KPIs to initiate our energy intensity from renewable source and solar rooftop establishment to track our record on using clean or green energy by ourselves. OR also promote the use of renewable energy in all establishment via the Renewable Energy Certificate (REC).
In order to promote the use of clean or green energy, OR currently uses renewable energy from solar panel and purchased Renewable Energy Certificate (REC) in establishments with details as follows:

OR’s establishments

In 2024, OR installs solar rooftop in OR’s establishments, marking a significant stride in our journey towards using clean or green energy. This initiative added a cumulative installed capacity of 17.50 MWp with an investment cost in innovation or R&D to decrease energy consumption of 502 million baht, not only showcasing our commitment to sustainable practices but also resulting in a reduced proportion of energy use of 15.34 GJ per 1 million baht of EBITDA.
Additionally, OR collaborate and working with PTT Group through PTT Group Net Zero Task Force or G-NET with Renewable Energy for Operation sub working group. The aims of this sub working group is to research and development (R&D) of renewable energy and study the feasibility of new investment for renewable energy and decrease the energy consumption.
Furthermore, we not only promoted the development of energy management through the projects and cooperation but also enhanced and provided the energy efficiency awareness training to employees for consumption reduction via the following details:

For target employees and direct operational employees: Training includes the topic of measurement guidelines for evaluation of energy performance and energy saving in compressed air and chilled water systems to maximize efficiency and reduce the amount of energy consumption.
For all employees: Raising the employee awareness of energy saving and reducing energy use through public relations media and email, for example, 60+ Earth Hour Campaign for energy saving and GHG reduction.