
Business operations of suppliers may generate both positive and negative impacts on the economy, environment, society, and human rights across OR’s supply chain to varying degrees. For example, petroleum transportation processes, if not supported by robust safety measures, may pose risks to surrounding communities and the environment. Likewise, coffee cultivation activities may place pressure on biodiversity, such as through the use of fertilizers and chemicals or deforestation. Conversely, these activities can also contribute positively to job creation and local economic development.
In addition, geopolitical changes, global warming, ESG-related pressures, regulatory and legal requirements, as well as stakeholder expectations, have elevated the importance of supply chain management to OR’s sustainability. Consequently, OR must consider efficiency, cost, transparency, traceability, and the reduction of environmental and social impacts, including human rights issues, throughout its supply chain.
Recognizing its involvement in these impacts, both from OR’s own operations and from its business relationships, OR places strong emphasis on comprehensive supply chain management. This includes enhancing efficiency, transparency, and traceability, strengthening governance measures, and working collaboratively with suppliers to mitigate negative impacts and amplify positive impacts, thereby creating long-term sustainable value for the economy, society, and the environment.

OR recognize the importance of environmental, social, and governance (ESG) considerations in our procurement activities through the Procurement Policy, which is embedded in the 2025 OR Group Way of Conduct. This serves as an operational framework for procurement processes across OR Group, ensuring that such processes are conducted efficiently and effectively, in a consistent direction, and contribute to sustainable development throughout OR Group. In addition, this approach aims to build stakeholder confidence through transparent, fair, and auditable procurement practices.
OR has established the OR Supplier Sustainable Code of Conduct (SSCoC) to specify the standards that OR’s suppliers should adhere to throughout their business operations. This includes ethical business practices, social responsibility, safety, and environmental management. OR communicates the details of the Supplier Sustainable Code of Conduct (SSCoC) to every supplier through electronic communication and integrating the Supplier Sustainable Code of Conduct as part of the annual supplier training.
Currently, OR has implemented the SAP Ariba system in its procurement and supplier registration process. All suppliers who wish to submit proposals must read and acknowledge the OR Suppliers Sustainable code of conduct: SSCoC during the OR supplier registration process before they are eligible to participate in the bidding.
OR communicates its anti-corruption policy to all suppliers registered under the SAP Ariba system through the acknowledgment of OR’s Supplier Sustainable Practices Guidelines, in order to promote transparent and auditable procurement processes. In the future, OR plans to expand communication of its anti-corruption policy to smallholder farmers in the northern region involved in coffee procurement, through activities or annual meetings, with the aim of enhancing understanding and strengthening collaboration in conducting business with transparency and ethical practices.

The Company’s Board of Directors has established the direction and oversight of the ESG supply chain management strategy for suppliers to ensure that the procurement process aligns with the organization’s business policies and strategies. The strategy includes 5 key components, including:

OR’s suppliers are categorized according to OR’s 5 main business groups along the Value Chain. An analysis of suppliers involved in procurement in 2024, revealed that OR has a total of 959 Tier-1 suppliers. The details of the business groups, key examples of suppliers, and procurement values are as follows:
Business Group | Example of Tier 1 Supplier | Procurement Value |
| Petroleum product group |
| 6,033.26 |
| Retail Oil Business Group (PTT Station) |
| 38.11 |
| Lubricant Business Group |
| 207.65 |
| LPG Business Group (excluding LPG) |
| 5.58 |
| Café Amazon Business Group |
| 103.29 |
OR has incorporated environmental, social, and good governance (ESG) considerations throughout the procurement process as part of our supply chain management strategy. ESG Criteria is required in procurement processes and contracts are, for example, Occupational, Health, and Safety (OHS), risk and crisis management, and energy management. OR has established a supplier management process comprising six components.

1. Supplier Screening
OR screens and selects suppliers based on environmental, social, ethical, and business relevant considerations. In the preliminary step, all suppliers wishing to be registered on the OR’s Approved Vender List (OR AVL), which is Approved Supplier List, must submit a document declaring that they meet OR’s criteria that called a “Pre-Qualification (Pre-Q)” for supplier screening consideration. The Pre-Qualification (Pre-Q) criteria covers various aspects, such as company registration status, financial status, standards for quality, safety, occupational health, and environment as well as sustainability policy and management. Additionally, suppliers are required to complete a supplier self-assessment questionnaire (SAQ), which includes questions covering environmental, social, community, corporate governance, human rights, and other business-related issues. The ESG assessment results are integrated with other evaluation criteria in the supplier selection process. Hence, suppliers with better ESG performance have a higher chance of being selected for OR’s Approved Vendor List and contract awards (due to their better ESG scores).
For the ESG self-assessment results according to the SAQ, suppliers must score above 60% to pass the criteria and be eligible to be listed on OR’s Approved Vendor List (AVL). If a supplier scores below 60% in ESG, they will have the opportunity to make improvements and can seek guidance from OR’s procurement department. Suppliers may then make the necessary corrections and reapply for OR’s Approved Vendor List in the next registration cycle. However, for suppliers seeking to improve their ESG performance, suppliers may engage in discussions with OR to address and enhance areas that do not yet fully meet the established criteria. This ensures that suppliers delivering goods or services to OR demonstrate sustainability performance that aligns with OR’s requirements and expectations.
After suppliers have passed the qualification screening process for each business category set by OR and have been registered in OR AVL, they will be eligible to bid on work within the published categories.
During the bidding process, each internal OR’s procurement unit can select criteria for selecting suppliers. This involves evaluating criteria related to price-performance criteria, as well as sustainability indicators beyond OR’s standard product and service quality requirements, such as labor management systems and greenhouse gas reduction initiatives. These sustainability aspects are then converted into scores for each supplier. However, the proportion of sustainability considerations depends on the nature of the work, products, or services being procured and their relevance to key sustainability issues.
In addition, OR takes into account supplier performance evaluation results following the delivery of goods or services. Suppliers whose performance ratings fall below the established criteria may be removed from the OR AVL.
2. Supplier Risk Assessment/Screening and Significant Supplier Identification
OR conducts a risk assessment of environmental, social, governance and categorizes suppliers continuously, considering information and trends at the country risks, sector risks, and product and service type (Commodity) risks. The key points for assessing supplier risks include:
Environment (E) | Social (S) | Governance (G) | Business Relevance |
|---|---|---|---|
• GHGs Emissions
• Air Pollution • Energy Management • Water and Wastewater Management • Waste and Hazardous Materials Management • Ecological impact • Sustainable Raw Material Sourcing • Circular Product Life Cycle • Deforestation Prevention and Protection | • Human Rights
• Forced Labour • Child Labour • Working Hours • Wages and Benefits • Fair Treatment • Social Diversity and Inclusion • Non-discrimination and Equality • Occupational Health and Safety • Community Relations • Fire Safety • Industrial Hygiene • Customer Welfare and Satisfaction • Human Capital Development • Labor Practices • Employee Engagement | • Anti-corruption and Bribery Implementation
• Fair Competition • Transparent Reporting Mechanism | • Delivery of products and/or services (quality, efficiency, and performance) |
OR regularly conducts risk assessment covering global risks, country risks, sector risks, and product and service type risks or commodity risks raised from the use of suppliers. The risks are summarized below:
OR conducts assessments of strategic/significant suppliers and those identified as having high-risk ESG annually. This assessment covers both strategic/significant Tier 1 Supplier and strategic/significant Non-Tier 1 Supplier. OR’s supplier types are defined from the risk level into 4 types: (1) Strategic/significant Suppliers, (2) Key Suppliers, (3) Managed Suppliers, and (4) Routine Suppliers. OR has established strategies and guidelines for management as follows:
Supplier Group | Definition | Management Approach | Management Tools* |
|---|---|---|---|
1. Strategic/significant Supplier | Suppliers/contractors with activities associated with high ESG risks that may cause severe impacts on suppliers themselves, and OR, and expand to surrounding communities, that leading to potential impacts on OR’s business and corporate image. | Develop long-term business relationships and actions to enhance the potential of doing business together and creating added value | – SSCoC – SAQ – ESG Supplier Audit – Supplier/Outsource Assessment and control Procedure – Supplier Retention and Development |
2. Key Suppliers | Suppliers with activities Associated with moderate ESG risks that may cause impacts on OR, both in terms of business and/or corporate image. | Develop long-term relationships to control costs, reduce risks, and maintain the competitive level | – SSCoC – Supplier/Outsource Assessment and control Procedure. – Supplier Retention and Development (on a case-by-case basis) |
3. Managed Suppliers | Suppliers with activities associated with low ESG risks that may have moderate impacts on OR and outside of the organization. | Maintain relationship based on performance and manage costs and risks according to the needs of the suppliers, and monitor performance. | – SSCoC – Supplier/Outsource Assessment and control Procedure |
4. Routine Suppliers | Suppliers with activities associated with low ESG risks that may have low impacts on OR and outside of the organization. | Maintain relationship based on performance and manage costs and risks according to the needs of the suppliers. | – SSCoC – Supplier/Outsource Assessment and control Procedure |
*Note: The management tools include:
3. Suppliers’ ESG Audit
Every supplier classified as a strategic/significant Supplier must undergo a sustainability operation assessment every three years to verify compliance with the SSCoC. The assessment will be conducted according to the “OR Supplier ESG Assessment Protocol”, referencing international ESG standards, including SMETA, ISO9001, ISO14001, ISO45001, and SA8000, as well as UN Guiding Principles on Business and Human Rights. This protocol covers various ESG aspects of supplier operations, such as environmental management systems and occupational health and safety management systems. OR establishes five main approaches to supplier ESG assessment:



OR supplier ESG assessment is categorized into three criteria as follows:
1) Business Governance: With the weight 34% consists of Business Continuity Management, Supply Chain Management, Quality Standards, Compliance with Law, Code of Conduct and Anti-corruption, Risk Management.
2) Environment: With the weight 31% consists of Environmental Management, Impact on Environmental and Eco-efficiency.
3) Social: With the weight of 35% consists of CSR, Health and Safety, Emergency prevention and response, Labour Relations and Human Rights.
If suppliers’ issues are detected, the procurement unit first communicates the findings to the suppliers. The suppliers are then required to develop a corrective action or improvement plan, which should include clearly defined measures to address and prevent deficiencies, along with a specified time frame for completion.
OR has an internal coordination and management systems to ensure that suppliers are informed of assessment/audit results, received advice on correcting defects and participate in continuous improvement. This includes benchmarking ESG performance against peer companies within the same industry, and incorporating best practices identified from such assessments into advisory support, which is also communicated to suppliers.
In addition to monitoring the ESG performance of strategic/significant suppliers, OR requires all suppliers engaged in petroleum product transportation under OR’s main contracts to undergo annual assessments of their petroleum transportation management capabilities, covering both road and marine transportation.
For road transportation audits, OR applies the PTT Group Road Safety Management Guideline for truck transport and using the Tanker Management and Self-Assessment (TMSA) criteria for ship transport assessments. The topics of assessment also include QSHE management operations. Accordingly, OR communicates topics that need to be improved, along with suggestions for transporters to develop their capacity according to the guidelines specified.
4. Supplier Retention and Development
OR supports suppliers in developing sustainable practices and aims to maintain positive relationships with them. For suppliers found to have defects during audit OR will communicate and require them to plan corrective actions and improve their operations. OR provides appropriate support to each supplier. whether it be communication, activities, and initiating various projects to promote opportunities for suppliers to improve their ESG practices. For example, annual supplier seminars, supplier training, and capacity building programs specific to each business, etc.
OR places strong emphasis on enhancing the capabilities of suppliers, transporters, and personnel across its business network through the establishment of the OR Academy, which serves as a center for developing knowledge, skills, and competencies to support sustainable growth of network partners. OR Academy delivers training through classroom and on-site formats, as well as online and e-learning platforms, to ensure broad and continuous access to learning. Training topics include, for example, basic accounting courses, introductory training on greenhouse gas emissions reporting and calculation to support business sustainability, and hazardous materials transportation driving courses, etc.
For more information, please refer to the Performance section.
5. Corrective Action Monitoring
OR monitors the results of corrections made by suppliers, with the responsible units specifying and tracking progress. Suppliers are required to report the progress of their corrections and improvements in addressing issues identified every three months. The results of these corrective actions are reported to organizational management reviews, and reports are presented to management and committees at various levels.
In addition, OR has developed the Best Practices Manual for each business to serve as a guideline for suppliers in improving their sustainability operations across environmental, social, and governance (ESG) dimensions. The guideline includes examples of best practices as well as various technical information that suppliers can apply to enhance and continuously improve their sustainability efforts.

6. Performance Reporting
Progress on implementation of the supply chain management strategy is regularly reported to executives and the Board of Directors. At the management level, performance is reported to the CEO through the OR Group Quality, Safety, Health and Environment Management Committee (OR QSHE GMC) and the OR Management Committee (ORMC), respectively. At the Board level, reports are submitted to the Corporate Governance and Sustainability Committee (ORCGS) and the Sustainable Development Committee (SD Committee). Additionally, information may be included in the annual sustainability report or on the Company’s website.
Supplier Assessment
OR has an assessment of supplier ESG risks and supplier prioritization. In total, OR has 2 strategic/significant Tier 1 suppliers and 1 strategic/significant non-Tier-1 supplier. Therefore, there are a total of 3 strategic/significant suppliers both Tier 1 and non-Tier 1.

At the beginning of 2025, an assessment of suppliers involved in procurement in 2024 and identified two significant suppliers required to undergo audits. In this regard, The sustainability performance assessment of suppliers involved in procurement was conducted through both online and on-site assessment in 2025. The assessment results indicated that both suppliers achieved satisfactory performance, with no significant ESG risks or impacts identified. Nevertheless, the audits also identified areas where recommendations could be provided for further improvement. OR communicated the development recommendations to both suppliers and provided appropriate support, covering 100% of the audited suppliers.
ESG issues identified during the audits, which were communicated and discussed with the suppliers to enable them to develop improvement measures, are as follows:
Criteria | Gap Topic | Examples of corrective action/improvement plans |
|---|---|---|
Business and Governance | Business Continuity Management system : BCM – Business continuity management practices, including business disruption prevention planning and the application of a Business Continuity Management System, have not yet been fully implemented, nor has certification been obtained. However, it should be noted that no business disruption incidents have occurred among the suppliers to date. | – Planning to adopt and implement ISO 22301 Business Continuity Management, and to obtain certification from a recognized certification body. |
Environment | – Some suppliers have not yet established continuous employee training programs related to environmental management. | – Defining and implementing environmental management training programs for employees on a continuous basis, at least once per year. |
Social | Not applicable. | |
In 2025, All suppliers successfully completed their corrective action plans. There was no risk of suppliers’ contract cancellation or termination due to ESG-related risks or impacts.
Supplier Capacity Building Program for each Business Group
1. 2025 OR Supplier Day
OR holds annual supplier seminars to strengthen relationships, communicate its strategies and policies, particularly the company’s sustainable procurement strategy, exchange knowledge, share useful information, discuss relevant market conditions, and communicate news and government policies that may affect the business operations of both OR and suppliers. It is also an opportunity for OR employees, operators, and executives to receive feedback on issues and suggestions directly from suppliers to further improve OR’s operations and create opportunities for doing business together in the future. This will help develop sustainable business operations.
In 2025, the seminar was held on 1 April 2025 under the theme “OR Sustainable Growth towards Smart Partnership.” The objective was to enhance suppliers’ understanding of relevant policies and keep them informed of organizational changes at OR, including the adoption of digital systems in procurement processes. Knowledge-sharing sessions were delivered on sustainability under the topic “Sustainability in Supply Chain,” along with communication on good corporate governance and anti-corruption practices. The seminar was attended by more than 150 suppliers.
OR recognizes suppliers as key business partners in driving sustainable growth. OR is committed to strengthening competitiveness in terms of quality and diversity of products and services, while managing costs efficiently and advancing digital transformation through SAP Ariba and the SAP Business Network, enhancing speed, transparency, and efficiency in collaboration. In addition, OR emphasizes the importance of Environmental, Social, and Governance (ESG) principles, encouraging suppliers to adapt and operate in an environmentally friendly and socially responsible manner, thereby creating long-term sustainability for both economic and environmental dimensions.

2. 2025 Seminar for Petroleum and Biofuel Product
OR organized an in-depth seminar for petroleum and biofuel business partner and suppliers, designated as strategic partners, in 2025, held on 28–29 August 2025 in Chonburi Province, with a total of 16 representatives in attendance.
The seminar aimed to strengthen relationships and facilitate knowledge exchange on energy topics, an overview of petroleum product demand and supply, relevant market trends, and updates on government policies affecting the operations of OR, suppliers, and business partners. In addition, it provided an opportunity for OR employees and executives to receive direct feedback, concerns, and recommendations from suppliers and partners to further improve and enhance OR’s operations, as well as create opportunities for sustainable growth and collaboration in the future. Furthermore, OR held a partnership meeting with refinery suppliers to explore and integrate the Voice of the Customer into product development to meet evolving customer demands and promote sustainable products.
In 2025, OR conducted assessments of eight petroleum and biofuel business partner and suppliers. Furthermore, OR carried out on-site assessments to evaluate quality control performance, product receiving, storage, dispensing, and transportation processes, as well as production and inventory management, and safety, occupational health, and environmental standards within suppliers’ operations. These actions were undertaken to ensure alignment with OR’s requirements, enhance confidence, and support the sustainable growth of business partner and suppliers alongside OR.
3. Sustainable Coffee Sourcing
OR is committed to enhancing the knowledge standards and coffee production capabilities of Thai farmers in alignment with the Café Amazon standard, encompassing quality development, environmental conservation and restoration, and the creation of stable income. This commitment is delivered through the Sustainable Coffee Cultivation Development Project in areas promoting Arabica and Robusta coffee cultivation, which has been implemented since 2014 in collaboration with expert partner organizations, including the Ministry of Agriculture and Cooperatives, the Department of National Parks, Wildlife and Plant Conservation, and various partners across multiple regions. The project focuses on knowledge transfer and skills development, enabling farmers to produce high-quality coffee while conserving soil and water resources, and supports the purchase of coffee beans under a Fair Trade pricing system to ensure stable and sustainable income for farmers.
Over the past 11 years, OR has advanced the project by integrating research with production process development across the entire value chain, from upstream to downstream, to add value to farmers’ outputs. Farmers in Chiang Rai, Chiang Mai, Nan, and Chumphon have received support in the form of technical knowledge, nurseries, coffee drying facilities, and on-farm water systems, as well as assistance in establishing community enterprises to strengthen capabilities and continuously expand the model to new areas. These efforts have enabled farmers to earn stable livelihoods aligned with living wage levels, improve quality of life, and are currently being expanded to additional underserved areas.
In parallel with building an end-to-end support system, OR has established Café Amazon coffee purchasing and processing facilities in Mae Wang District, Chiang Mai Province, with the objective of directly purchasing coffee from smallholder farmers in northern Thailand. OR has also developed a coffee knowledge development institute for farmers, offering simple and practical training curricula, both foundational and specialized, covering seedling cultivation, farm management, pest and disease control, and coffee processing. These initiatives aim to upgrade coffee bean quality to meet market demand, support the development of Café Amazon as a sustainable green business, and align with the BCG and SDGs objectives in a tangible and meaningful manner.

4. Strengthening Safety Performance Amongst Petroleum Products Suppliers and Transporters
OR focuses on enhancing safety capabilities throughout the petroleum product transportation process. This is achieved through in-depth training the transporters in the safe handling of petroleum products, adhering to standards and laws. Moreover, OR also supports each transporter in installing and utilizing In-Vehicle Monitoring Systems (IVMS) technology. The IVMS technology records travel data of the transport vehicles, used for controlling, supervising, and overseeing the transportation of petroleum products. This ensures that every transporter aligns their operations with the expected standards and safety requirements in transportation. Read more on Occupational Health and Safety
In 2025, the working team for petroleum product delivery and transportation safety development focused on reviewing operational practices in line with the Zero Accident target, while also facilitating exchanges of views between OR and transporters to ensure confidence that transporters’ operations comply with OR’s safety standards and policies.
In terms of safe transportation management capability, OR conducts management audits of road transporters in accordance with the PTT Group Road Safety Management Guideline, covering transporters’ office and fleet operation areas. For marine transporters, audits are conducted based on the Tanker Management and Self Assessment (TMSA) framework in line with international standards. Following each audit, audit findings and recommendations for corrective actions and improvement are communicated to the transporters. In addition, the audit results are incorporated into performance evaluation and contract management processes, to ensure that transporters effectively implement audit recommendations and continuously enhance their capabilities, thereby achieving tangible improvements in safe transportation management.

5. 2025 Petroleum Product Transporter Communication and Award Ceremony
OR organized activities to communicate and foster mutual understanding in conducting business together between suppliers and OR, while facilitating knowledge exchange to jointly enhance the efficiency of petroleum product transportation operations. This was delivered through Workshop, Coaching, and Clinic activities, providing guidance and knowledge-sharing on transportation management in accordance with the PTT Group Road Safety Management Guideline.
In addition, OR, in collaboration with the PTT Group and the Oil Industry Environmental Safety Group Association (IESG), presented awards to petroleum product transport contractors and drivers with outstanding safety performance. The awards aim to promote, motivate, and encourage a commitment to safe transportation practices, fostering a sense of responsibility toward society, communities, and the environment. The selection criteria included transport contractors and drivers with no major accidents, no complaints, and no violations of laws or contracts. In addition, transportation statistics and driving behavior monitored through the IVMS system were taken into account.

6. OR provides training on basic accounting, reporting, and preliminary greenhouse gas emissions calculation for business sustainability to suppliers
OR organized two training programs on basic accounting, reporting, and preliminary greenhouse gas (GHG) emissions calculation for business sustainability for suppliers of OR. Participants included suppliers and customers from upstream and downstream businesses, service providers, and the transportation sector. The training aimed to enhance foundational knowledge and understanding of organizational carbon footprint assessment in accordance with ISO 14064-1 and the GHG Protocol, including Scope 1, Scope 2, and Scope 3 greenhouse gas emissions reporting. The programs also provided an understanding of basic principles and practices to establish a foundation for organizational greenhouse gas accounting, preliminary GHG emissions calculation and reporting, as well as strategies and technologies for effective greenhouse gas emissions reduction, together with concepts and approaches to mitigate greenhouse gas emissions.

Strengthening Sustainable Procurement Capacity in the Organization
1. OR Sustainable Supply Chain Management training
On 10 June 2025, OR organized a Sustainable Supply Chain Management training program for 30 employees responsible for supply chain management and procurement, delivered by external speakers and subject-matter experts.
The program aimed to enhance participants’ knowledge and understanding, enabling them to develop strategies and approaches for sustainable supply chain management across various processes throughout the entire life cycle, from upstream to downstream.
The training covered key processes, including product and service design, waste disposal, production and packaging, transportation, warehouse management and distribution, as well as product recall and waste management. The content emphasized not only business efficiency, but also a balanced and sustainable approach to social and environmental responsibility.
In addition, workshop sessions were conducted focusing on the analysis of SDGs, BCG, ESG supply chain concepts, and effective Sustainable Supply Chain Management (SSCM) strategies, to strengthen employees’ understanding and support the practical application of sustainable supply chain management in OR’s operations.

2. Third Party Verification
In 2025, OR conducted an external audit of its supply chain management activities, conducted by an external audit: Assurance Statement
The ESG supplier management process is continuously reviewed to ensure its alignment with the organization’s business strategy and that supplier operations comply with the sustainable practices outlined in the Supplier Sustainability Code of Conduct (OR SSCoC) and the ESG practices established by OR.
PTT Oil and Retail Business Public Company Limited
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