Human Rights

Importance

            In 2023, businesses faced heightened expectations regarding human rights, particularly through global developments in laws and standards. These included developments regarding the adoption of the European Union Corporate Sustainability Due Diligence Directive (CSDDD)¹, which mandates businesses operating in the European Union to assess the social and human rights impacts throughout their supply chains, and internal developments within Thailand, with the launch of the 2nd National Action Plan on Business and Human Rights in the middle of 2023.

            OR recognizes that the activities of business and suppliers may impact the lives of various groups of individuals. These range from the labor rights of employees, the living standards of communities in the operational areas, to the privacy rights of consumers. As a business with diverse operations across multiple countries, including business activities with customers in the European Union, OR must comprehensively address human rights issues to ensure compliance with relevant laws and avoid negative impacts on the human rights of our stakeholders.

            In addition, OR actively promote human rights, and are committed to conducting business in accordance with human rights principles, in line with applicable laws, regulations, and international standards. OR consistently ensure that all employees are entitled to equal treatment, with the right to express their opinions and avenues complaint channels in case of any improper treatment.

2023 Target

¹For more information click.

Management Approach

Human Rights Policy

            OR is committed to conducting business with integrity and respect for human rights. In 2022 OR has developed a Human Rights Policy expressing our commitment to act in accordance with the principles of international human rights, international laws, and local laws of the country where we conduct business. The Policy is aligned with accepted international human rights standards and practices, such as the United Nations Universal Declaration of Human Rights (UNHDR) and the Core Conventions of the International Labor Organization (ILO Core Conventions). OR is committed to promoting equality and prohibiting discrimination on the basis of gender, ethnicity, race, religion, or any other status. We uphold employees’ labor rights and strongly oppose the use of child labor and forced labor. The scope of the Policy covers all OR's business operations, including Group companies, business partners, contractors, suppliers, agents and service providers, as well as any new business relations or joint ventures with diverse forms of business relationships. (Contractor, Supplier, Agents, and Service Providers as well as to its New Business Relation) 

            For more information from website: https://orapiweb.pttor.com/uploads/documents/20220625_230432_8789.pdf

            OR communicates the Human Rights Policy to employees and stakeholders by integrating the Policy into training programs for new employees and new PTT Station dealers. The contents of the Policy are passed on to Group companies through the OR Group Way of Conduct, and to suppliers and contractors through the PTTOR Supplier Sustainable Code of Conduct (SSCOC). In 2023, OR also published the 'OR Group Human Rights Handbook', which defines work processes and standards that support compliance with the Human Rights Policy of OR and OR Group (PTTRS, PTTRM, and Thai Lube Blending)

            For more information from website: OR Group Human Rights Handbook

            OR has assigned responsibility for oversight of human rights issues to the Sustainability, Quality, Safety, Health and Environment Department Responsibilities include conducting human rights due diligence (HRDD) and human rights risk assessment at least every 3 years, monitoring human rights and reporting on the results, determining corrective actions and remediation for incidents of human rights violations, organizing training on human rights, and communicating with other relevant departments to cooperate on human rights management. The results are expected to ensure that all human rights working processes have been operated efficiently and achieve the goals.

Labor Practices

            As an employer, OR takes responsibility for respecting the rights of our employees and workers throughout the supply chain. OR operates in accordance with international labor rights principles. The details are presented below: 

Freedom of Association

            OR respects employees’ right to form associations and/or participate in collective bargaining to negotiate their working conditions and the working environment. We seek to support employees and workers in accessing this right through refraining from interfering in employee participation or membership of associations or groups. OR has supported the establishment of welfare committees in all operational sites. These committees are groups of employees elected to represent employee interests in collective bargaining about working conditions that affect employees.Furthermore, to support access to this right for workers in our supply chain, OR has also included specific clauses on freedom of association, and the freedom of employees and workers to either participate or abstain in associations, unions, and federations, in the “PTTOR Supplier Sustainable Code of Conduct”. This information is communicated to all suppliers for their acknowledgement and strict compliance. As of 2023, OR and our suppliers do not have any risks with regards to freedom of association and collective bargaining.

Child Labor and Forced Labor

            OR considers human rights a non-negotiable in conducting our business. As also expressed in our Human Rights Policy, we have zero tolerance for use of child labor and forced labor, which is a grave violation of basic human rights. OR is committed to compliance with laws, regulations, and international standards. Combatting and eliminating child labor and forced labor is embedded in our Human Rights Policy and the PTTOR Suppliers Sustainable Code of Conduct. To that end, we have maintained child labor and forced labor as one of the human rights issues that must be closely monitored through human rights due diligence. In 2023, OR and suppliers did not have child labor and forced labor risks.

            In addition, labor rights issues have been identified as one of the key focus areas, with principles, considerations, performance indicators, and practical guidelines set in the OR Group Sustainability Management Standard.

            (Read more about supplier standard from ‘Supply Chain Management’)

            (OR Group Sustainability Management Standard)

Human Rights Due Diligence^{(GRI 406-1., GRI 411-1)}

Human Rights Due Diligence Process

OR has established a human rights due diligence process including the following components:

1. Establish Policy Commitment: OR has established a Human Rights Policy that covers all OR’s business operations (business activities, products, and services), subsidiary companies, and joint ventures with business relationships (OR companies from mergers and acquisitions).

2. Assess Actual and Potential Impacts: OR identifies and assesses human rights risks and impacts through the value chain and associated with production of products and services of OR, subsidiary companies, and joint ventures with business relationships (OR companies from mergers and acquisitions). We identify stakeholders whose human rights may be affected. 

3. Integrate Findings and Take Appropriate Action: OR integrates findings through defining mitigation and remediation measures for human rights salient issues in order to effectively prevent and minimize human rights risks and impacts. 

4. Track and Communicate Performance: The department responsible for oversight of human rights will track and monitor the implementation and effectiveness of measures assigned to prevent and mitigate human rights impacts to assess if they are effective in preventing and/or minimizing human rights risks and identify areas of improvement (if any). Results will then be reported to the management level and related departments for acknowledgement.

5. Remediate Adverse Impacts: OR recognizes that human rights violations, if they occur, may affect the Company’s stakeholders. This may occur anywhere through the value chain and activities associated with the production of the products and services of OR and OR group. Thus, OR has put in place procedures to ensure access to remediation, including the establishment of complaint channels and identification of forms of compensation. Compensation may take the form of monetary compensation such as compensation for damages, as well as non-monetary forms, such as the creation of a Customer Relations Centre via telephone or website channels to take feedback, provide advice, enact corrective actions, and provide preliminary remediation to maintain the relationships between OR and all OR’s stakeholders.

Human Rights Issues and Relevant Rights Holders

            To identify our salient human rights issues, OR reviews global human rights trends and updates through various sources, such as reports from organizations like Human Rights Watch and the Business and Human Rights Resource Center. Findings are then considered along with human rights issues identified by industry peers. The results are as follow:

Human Rights Risk Assessment Results and Mitigation Measures

            In 2023, OR conducted a human rights risk assessment covering 100% of the operational areas of contractors and Tier I Suppliers, as well as joint ventures. Representatives from various units responsible for rights-holders participated in assessing activities throughout the value chain and assessing the severity and likelihood of human rights risks identified in the business operations.

            From this assessment, it was found that in 2023, OR had three salient human rights issues. Salient issues are present in 30% of OR’s own operations, 0% for contractors and Tier 1 suppliers, and 37.5% of joint ventures. 100% of business activities with risks had mitigation actions taken (262 locations). 

            As part of the human rights due diligence, OR incorporates evaluations of the opportunities and risks associated with launching or expanding new businesses (New Business Relations) and covering into the joint ventures, to prevent any adverse human rights impacts on either rights holders or vulnerable groups.

           For more information from 2023 Human Rights report link: https://orapiweb.pttor.com/uploads/documents/20230713_002714_1379.pdf

Complaint Channel

            Communication channels and complaint mechanisms are crucial tools that allow OR to be aware of risks of human rights violations, ongoing incidents, and past occurrences. They are essential components in validating the results of human rights risk assessments. In cases where the assessment reveals incomplete risk issues, the complaint mechanism may serve as a pathway for rights holders to submit complaints and point out issues that may have been overlooked. OR has established communication channels and a system for receiving complaints regarding various human rights issues as follows:

            Employees or internal rights holders can directly submit complaints through the following channels:

- Leadership and Talent Management Department - Oversees compliance with regulations and investigates complaints received through submission to supervisors or through complaint letters to the department.

- Welfare Committee, Human Resources Service Department - Receives suggestions for the development of employee welfare.

- Corporate Governance Department - Receives and investigates complaints and conducts inquiries into corruption within the organization, ensuring good governance.

            OR Customers or external rights holders can directly submit complaints through the OR Contact Center at 1365 (available 24 hours), social media platforms, both publicly and anonymously, and website: https://www.pttor.com/th/contact_center

            In order to protect the complainant, OR will treat complaints as confidential and keep the complainant's identity confidential. The complainant will be protected from retaliation or unfair treatment resulting from the act of making a complaint.

Human Rights Training

Discrimination and Harassment Training

            In 2023, OR developed the “Discrimination and Harassment” as one of the human rights issues, OR has developed an online e-learning course on discrimination and harassment. Employees are required to complete training.

            The training course aims to provide participants with knowledge and understanding of key principles, including equal opportunity, discriminatory practices, harassment, bullying in the workplace, and relevant Thai laws. Additionally, the course covers preventive measures and guidelines for addressing issues related to discrimination, harassment, or intimidation in the workplace.

            A total of 1,565 employees participated and passed the training, amounting to 82.41% of all employees.

Training on Respect for Human Rights in Security Operations 

            Contractors and security personnel at OR's operational sites must receive communication regarding OR's Human Rights Policy. Furthermore, it is stipulated in the contract that they have received training on human rights. 100% of security personnel and subcontracted security personnel acknowledged OR's Human Rights Policy. Additionally, OR communicates the human rights specifications to its suppliers and ensures they acknowledge and adhere to the sustainable code of conduct outlined in the PTTOR Suppliers Sustainable Code of Conduct.