OR MANAGING IMPACTS ON STAKEHOLDERS IN THE OR VALUE CHAIN

OR Value Chain

            OR’s business structure aligns with its 4 key missions: Strengthening integrated energy businesses for Seamless Mobility, Striving to create a One-Stop Solution Ecosystem for all Lifestyles, Scaling the portfolio for success and recognition in the global market, and Driving digital innovation to support and strengthen the current business while exploring new business opportunities through OR Innovation. The structure of the business operations is divided into 4 main groups: Mobility business, Lifestyle business, Global business, and Innovation business. The activities within the Mobility business group involve providing integrated energy services for Seamless Mobility by managing the energy business ecosystem. This includes traditional energy (Fossil-Based) such as the distribution of petroleum products via retail marketing, energy solutions, and lubricants businesses. Key products include gasoline, diesel, liquefied petroleum gas (LPG), aviation fuel, fuel oil for ships and industrial sectors, lubricants. Additionally, this also includes the provision of renewable or clean energy (New Energy-Based). The clean energy aspect includes developing a network of electric vehicle charging stations (EV Station PluZ) and creating diverse physical platforms to serve all consumer behaviors in various locations. As for the Lifestyles business such as coffee shops, convenience stores, food and beverage businesses, retail businesses for health and beauty products, as well as area management in gas stations. The Global business operates both the Mobility and Lifestyle businesses through subsidiary companies established abroad. In addition, OR is committed to driving its business through digital innovation to create new opportunities and ensure sustainable growth in the Mobility and Lifestyle businesses. Furthermore, there are support units such as OR Academy, Lifestyle Business Center (OASYS), Financial Structure, Digital Technology Structure, and People and Organizational Structure. Each activity is related to OR’s 6 main stakeholders as follows.

OR Value Chain
Main stakeholders and their involvement with the activity
Procurement (Sourcing Raw Material)
• Country: Government agencies, policy makers, and those responsible for corporate governance, approval, and authorization

• Shareholders/Investors: Shareholders, investors, juristic persons, and institutions investing in the stock market

• Business Partners and Suppliers: Suppliers of products and services

• Society and Communities: Individuals who may be affected by the raw material procurement process.
Transportation
• Country: Government agencies, policy makers, and those responsible for corporate governance, approval, and authorization

• Business Partners and Suppliers: Suppliers of products and services.

• Society and Communities: Individuals who may be affected by transportation.

Picture5
Production and Service
• Country: Government agencies, policy makers, and those responsible for corporate governance, approval, and authorization.

• Shareholders/Investors: Shareholders, investors, juristic persons, and institutions investing in the stock market.

• Employees: OR employees and employees hired through outside companies under OR’s supervision.

• Business Partners and Suppliers: Suppliers of products and services Society and Communities: Individuals who may be affected by business operations.

Delivery of Goods and Services
• Country: Government agencies, policy makers, and those responsible for corporate governance, approval, and authorization.

• Shareholders/Investors: Shareholders, investors, legal entities, and institutions that invest in the stock market.

• Business Partners and Suppliers: Suppliers of products and services.

• Customers: Distributors, those who hold the right to operate business, and consumers.

• Society and Communities: Individuals who may be affected by the delivery of goods and services.

Joint Investment
• Country: Government agencies, policy makers, and those responsible for corporate governance, approval, and authorization.

• Shareholders/Investors: Shareholders, investors, legal entities, and institutions that invest in the stock market.

• Business Partners and Suppliers: Joint ventures, business partners

• Customers: Distributors, business license holders, and consumers.

• Society and Communities: Individuals who may be affected by business operations.

Support Activities
• Country: Government agencies, policy makers, and those responsible for corporate governance, approval, and authorization.

• Shareholders/Investors: Shareholders, investors, legal entities, and institutions that invest in the stock market.

• Employees: OR employees and employees hired through outside companies under OR’s supervision.

• Business Partners and Suppliers: Joint ventures, business partners, supplier of goods and services, and contractors

• Customers: Distributors, those who hold the right to operate business, and consumers

• Society and Communities: Individuals who may be affected by business operations.

OR value chain and scope of operations

Note:

1 LPG from the PTT gas separation plant is transported through pipelines to the Khao Bo Ya LPG Terminal and the Ban Rong Po LPG Terminal before further transportation by trucks, ships, and trains to the destination warehouses. The majority of LPG gas comes from gas separation plants, but additional LPG is also taken from oil refineries.

2 LPG cylinder of all sizes, if their legal testing period expires or if they are damaged, shall be sent back to the liquefied petroleum gas storage. They will then be forwarded to the LPG cylinder refurbishing plant for testing and maintenance according to the Thai Industrial Standards Institute (TISI) 151, before being refilled and resale.

Stakeholder Engagement

            OR engages with stakeholders in each group, varying based on the appropriateness of opportunities and the level of the relationship, both formally and informally. This is to collaboratively drive positive changes and minimize negative impacts for all parties involved. The guidelines for engaging with stakeholders include:

            From the sustainability management policy, which emphasizes maintaining a balance among economic, social, and environmental aspects, as well as all groups of stakeholders, for the sustainability of the business, OR has developed the Stakeholder Engagement Guideline. This guideline outlines effective ways to engage with stakeholders, referencing the AA1000 Stakeholder Engagement Standard by Accountability. Each department is responsible for identifying and prioritizing the importance of stakeholders related to its operations and engaging with them. The engagement strategies vary based on the prioritization and concerns/expectations of stakeholder groups. The stakeholder engagement data is then summarized for the Sustainability Quality, Security, Safety, Health, and Environment department. The outcomes of the stakeholder engagement can be summarized as follows:

OR’s main stakeholders are divided into 6 groups, consisting of:

Results of Feedback from Key Stakeholders

Country
Participation approach
Concerns and Expectations
Approaches to address concerns or expectations
• Seminars and meetings according to the agenda
• Preparing reports on the progress of work or relevant documents to be submitted to government agencies in accordance with the law
• Supporting and cooperating
• Preparing a summary report of the project outcomes
• Compliance with laws, regulations, and responsiveness to government policies
• Contributing to the economic growth of the country.
• Collaborating with the government to support various policies and campaigns.
• Strict adherence to the law
• Incorporating government policies into business strategies and directions
• Communicating laws, policies, and implementation to stakeholders
• Setting a good example for other businesses
• Supporting the government’s policy to promote electric vehicles.
• Collaborating with the government on various projects, such as the FIT Auto Tune-up project, which helps reduce PM2.5 dust by offering product discounts and free vehicle inspections to the general public during the New Year and Songkran festivals. Additionally, the “Pun Suk area” project allows farmers to sell their products at PTT Station, as well as the “Ob-Aom Clinic” project, which provides healthcare services and increases access to public health services.
Shareholders/Investors
Participation approach
Concerns and Expectations
Approaches to address concerns or expectations
• Meetings
• Disclosure of information through annual reports
• Channels for receiving feedback, suggestions, and complaints through the Ordering & Customer Relations Contact Center 1365, and the website
• Good corporate governance
• Sustained business growth and worthwhile returns
• Compliance with good corporate governance policies
• Communicating and disclosing business operation information to stakeholders
• Publishing One Report (Form 56-1) and the sustainability report
• Business adaptation to challenges, fluctuations, and changing circumstances
• Conducting business that responds to future changes in energy consumption
• Incorporating ESG principles into the organization’s strategy and objectives
• Seeking new opportunities in the EV Ecosystem, expanding the number of EV Station PluZ, and developing applications to enhance user satisfaction.
Business Partners and Suppliers
Participation approach
Concerns and Expectations
Approaches to address concerns or expectations
• Meetings, seminars, visits, and inspections of partners’ operational areas as scheduled
• Organizing training sessions to provide the necessary knowledge for business operations in accordance with OR’s practices
• Channels for receiving feedback, suggestions, and complaints
• Annual Business Partners and Suppliers satisfaction assessment
• Conducting business smoothly and fairly, with standards and clear criteria for conducting business with Business Partners and Suppliers
• Having business processes that are transparent, fair, and equal for Business Partners and Suppliers, along with clear criteria for selecting suppliers based on policies and practices related to good corporate governance
• Developing the capacity of Business Partners and Suppliers in both business aspects and sustainable business practices
• Providing training to enhance knowledge for Business Partners and Suppliers
• Improving the quality of products/services and reducing farmers’ concerns about the continuity of agricultural product procurement in OR’s business operations.
• Providing knowledge and developing the capabilities of farmers in cultivation, production, and marketing, to ensure that their agricultural products meet OR’s quality standards and foster sustainable business growth together.
Society and communities
Participation approach
Concerns and Expectations
Approaches to address concerns or expectations
• Channels for Feedback, Suggestions, and Complaints through the Order Management and Customer Relations Center, Contact Center 1365, and Website.
• On-Site Engagement for Opinion Exchange
• Creating Shared Value (CSV)
• Communication of Information and Facts
• Reducing social inequalities, including physical disabilities, income levels, vulnerable groups, and gender or age differences
• Promoting social equality through Café Amazon for Chance outlets, providing opportunities for socially disadvantaged individuals to develop themselves into baristas or staff
• Conducting businesses that do not adversely affect the community, including providing channels for communication, coordination, and rapid problem-solving
• Controlling operations with management standards that do not adversely affect the community
• Monitoring and continuously improving operations.
• Providing channels for coordination and rapid problem-solving
• Communicating information and facts quickly, accurately, and comprehensively
• Communicating and publicizing information, news, and facts quickly, accurately, and comprehensively, and adhering to ethical standards in advertising products and services
Customers
Participation approach
Concerns and Expectations
Approaches to address concerns or expectations
• Organizing seminars and roadshows
• Contacting customers
• Satisfaction surveys
• Service and assistance
• Channels for receiving feedback, suggestions, and complaints through the Ordering & Customer Relations Contact Center 1365, and the website
• Promoting the application and organizing activities to increase customer engagement
• Delivering quality products and services according to standards and safety
• Managing issues that pose risks to customer confidence and building a positive reputation for OR
• The use of various complex applications
• Developing innovations to enhance the level of delivery and customer service across various aspects comprehensively
• Quality Assurance (QA) processes and coaching to control the service quality of employees
• Listening to customer feedback and undertaking improvements, developments, and improvements of products and services to meet their needs
• Providing benefits to customers to facilitate usage and offer a variety of products
Employees
Participation approach
Concerns and Expectations
Approaches to address concerns or expectations
• Developing knowledge, skills, expertise, and experience
• Communicating information and listening to feedback through various communication channels
• Organizing activities to build relationships among employees such as annual OR employee seminar
• Conducting an Employee Engagement Survey and assessing adherence to the organizational culture (OR DNA)
• Employees have the knowledge and expertise to conduct business and are sufficiently staffed to support business operations
• Providing guidance and opportunities for employee growth and career advancement
• Developing employees’ knowledge, skills, and experience for their expertise to be aligned with the organization’s strategic direction
• Cultivating employee pride in the organization and readiness to grow sustainably with the organization
• Cultivating OR DNA within the Company’s culture to empower employees and foster collective success.
• Providing an appropriate work environment
• Implementing a suitable work structure by utilizing technology, optimizing workspaces, upgrading equipment, and redesigning work processes, such as Flexi Time, Work from Home, and Virtual Meetings.
• Providing benefits that meet employees’ needs
• Providing an appropriate work environment
• Assessing the work environment and conducting health assessments for employees working in high-risk areas

            In addition, OR regularly reports the outcomes of its corporate engagement activities with all stakeholders to the OR Sustainable Development Committee (OR SD Committee) every 3 months. The objective is to discuss and propose guidelines for improving the effectiveness of engagement with all stakeholders.