sd - web1.pttplc.com · with ptt group’s owned and influenced activities and is to be overruled...

SD-บภญ-0001 ประกาศใชค้ร้ังที ่1 (24 ก.ค. 2556)

CONTENTS

SECTION 1 OVERVIEW AND SUMMARY ............................................................................................... 1 SECTION 2 EXTERNAL STAKEHOLDERS AND VOLUNTARY COMMITMENTS ......................................... 3 SECTION 3 HUMAN RIGHTS POLICY AND GOVERNANCE FRAMEWORK .............................................. 5 SECTION 4 HUMAN RIGHTS MANAGEMENT SYSTEM PROCESS ........................................................... 7 SECTION 5 HUMAN RIGHTS RISK MANAGEMENT REQUIREMENTS ................................................... 12

1. Employee 12 1.1. Working conditions 12 1.2. Freedom of association and collective bargaining 14 1.3. Forced and compulsory labor 15 1.4. Child labor 16 1.5. Safe and healthy working conditions 17 1.6. Discrimination 18 2. Community 19 2.1. Standard of living and quality of life 19 2.2. Community health and safety 20 2.3. Community engagement 20 2.4. Cultural heritage 21 2.5. Minorities including indigenous peoples 22 2.6. Resettlement 23 3. Supply chain 24 3.1. Supplier engagement 24 3.2. Supplier code of conduct 25 4. Security 25 4.1. Security management 25 4.2. Security training 26 5. Environment 27 5.1. Water security 27 5.2. Impact of pollution 28 5.3. Waste and hazardous materials management 29 5.4. Preservation of biodiversity 29 5.5. Broadening Access to Energy 30 6. Customer and society 31 6.1. consumer health and safety 31 6.2. Data privacy 32

SECTION 6 REFERENCES ..................................................................................................................... 34 SECTION 7 ANNEXES ........................................................................................................................... 35 ANNEX A: HUMAN RIGHTS RELATED INITIATIVES AND RELEVANCE TO PTT GROUP ........................... A1 ANNEX B: HUMAN RIGHTS RISK ASSESSMENT AND RISK REGISTER ..................................................... B1 ANNEX C: HUMAN RIGHTS DUE DILIGENCE CHECKLIST ........................................................................ C1 ANNEX D: HUMAN RIGHTS IMPACT ASSESSMENT AND SELF-ASSESSMENT CHECKLIST ..................... D1

SD-บภญ-0001 ประกาศใชค้ร้ังที ่1 (24 ก.ค. 2556) 1

SECTION 1 OVERVIEW AND SUMMARY

PTT Group is committed to sustainable management by endorsing Sustainability Management Policy

and Sustainability Management Framework. This, in effect, will lead to effective implementation.

PTT Group Sustainability Management Project develops Human Rights Management System to serve

as a guideline for PTT Group for Human Rights management.

PURPOSE OF THIS GUIDELINE

Set an overacrhing approach for human rights issues management relevant to PTT Group

business; and

Assist PTT Group functions in implementing the required procedures.

SCOPE OF THIS GUIDELINE

The HRMS applies to all activities of PTT Group with potential human rights impacts, including

early developmental stages such as mergers and acquisitions throughout the entire life cycle of

project.

The HRMS applies to all PTT Group operating projects globally.

This HRMS is only an internal approach for PTT Group for managing human rights risks associated

with PTT Group’s owned and influenced activities and is to be overruled by local and international

laws, regulations, standards which the company is committed to.

As PTT Group conducts business in a complex global marketplace, HRMS cannot address every

situation that might arise on the job. However, PTT Group is committed to conduct business in

accordance with good governance, business ethics, transparency and accountability. In situations

where local customs or practices conflict with international standards, PTT Group must engage

meaningfully with communities about the mismatch between local practices and international

human rights standards to resolve the situation in order to achieve sustainable development goal.

Context for this guideline

The company needs to develop a systematic approach for assessing and addressing human rights

risks, mitigating impacts and monitoring and reporting performance. The systematic approach or

tools to support the management of human rights issues includes;

External drivers (e.g. voluntary commitments and legal requirements).

Governance structure and roles and responsibilities of involved functions for human rights

management.

Management system and assurance process (i.e. human rights risk identification and assessment,

human rights compliance assurance, and performance monitoring and reporting).


OVERVIEW OF HUMAN RIGHTS MANAGEMENT SYSTEM

PTT Human Rights Management System is shown in Figure 1.

Figure 1 Overview of PTT Group Human Rights Management System

PTT Group defines its commitment in sustainability management through its Sustainability Policy and

Sustainability Management Framework. To ensure the successful compliance with the policy and

framework, a human rights management system has been developed to govern the direction of

human rights related practice within PTT Group according to element 2 (human rights) and element

3 (people) under PTT Group Sustainability Management Framework. The human rights management

system consists of 5 key activities:

1. Assess Impacts: human rights risks and impacts are identified and assessed in both national

and industrial level. This includes assessment in the areas of operations and level of

personnel.

2. Integrate: after impact assessment, ensure mitigation measures for identified human rights

risks are implemented through the sustainability management framework, OHS management

system, handbook for community engagement.

3. Grievances: grievance mechanism is in place for stakeholders to address complaint or report

cases of human rights violation efficiently. Those reporting complaints should be under

protection. Grievance mechanism can be the existing one or public participation process.

4. Track and Monitor: follow-up on the implementation of management approach and mitigation

measures

5. Report: regularly report and publicly disclose management approach and performance to

public and stakeholders.


SECTION 2 EXTERNAL STAKEHOLDERS AND VOLUNTARY COMMITMENTS

EXTERNAL STAKEHOLDERS AND VOLUNTARY COMMITMENTS

The concept of ‘human rights’ was first enshrined in law through the Universal Declaration of Human

Rights (UDHR) after the end of World War II, aiming to abolish violations of human rights. Since

then, organizations try to address human rights through a variety of contexts such as fair corporate

governance, labor practice, equal opportunity, and protection of the rights of minorities. While

majority of human rights related initiatives are related to social aspects, current human rights issues

are also related to the environmental aspect as well. As individuals are to enjoy safe, clean, healthy

and sustainable environment, activities of the business may have potential impacts to the

environment and therefore impact environmental quality and rights as mentioned earlier.

Currently, there are many organizations and associations at the global level who are concerned

about business and human rights. Numbers of guidelines and initiatives have been published to

assist companies in implementing human rights and ethics consideration into the business

operation.

Human rights guided principles are developed by United Nations Global Compact (UNGC), United

Nations Universal Declaration of Human Rights (UDHR), United Nations Declaration on the Rights of

Indigenous Peoples, International Labor Organization (ILO), and United Nations Framework and

Guiding Principles on Business and Human Rights: Ruggie Framework. All of which focus on variety

of aspects of human rights issues but the main objective is to support the rights of all individuals,

regardless of their roles and position in the society.

PTT Group voluntary implements human rights related initiatives and is an active member of UNGC.

More companies within the oil and gas industry are aware of human rights issues as the nature of

business poses high risk to violate rights of effected individuals. Human rights guidance documents

specific for oil and gas industry are developed by IPIECA e.g. Human Rights and Ethics in Oil and Gas

Industry, Human Rights Due Diligence Process, Indigenous People and the Oil and Gas Industry, etc.

Specific to oil and gas and mining companies, the Extractive Industries Transparency Initiative (EITI),

a global standard that promotes revenue transparency, focuses on improving governance of

resource-rich countries, reducing corruption and increasing transparency by fostering open public

debate about how oil, gas, and mining revenues are used. Three key components of the EITI

comprise (a) disclosure of payments made by companies to governments, (b) disclosure by

governments of the payments that they receive, and (c) independent verification of the payments

made and received (e.g. taxes, royalties). However, PTT Group takes step forward in disclosing its

financial performance publicly.

Similarly, ISO26000 also provides sufficient guideline with regards to approach towards social

responsibility which includes aspects of human rights, labor practices, environment, community

involvement and fair operating practices.

Global Reporting Initiative (GRI)’s Sustainability Reporting Guidelines also includes aspects of human

rights related performance and management approach for organizations to publically disclose

material information through sustainability reports.

More details of relevance of human rights requirements and PTT Group Sustainability Management

Framework are summarized in Annex A.


EXTERNAL REGULATORY AND PUBLIC ADVOCACY

Compliance to applicable laws, local practices (e.g. embedded or cultural practices) and regulations

of the host countries is the basic requirement which PTT Group must adhere to, in addition to the

internal standards and guidelines. PTT Group reviews the country based human rights risks1 to

understand human rights issues currently exist in the country of operations.

PTT Group respects the international norms of behavior and shall strive to adhere to the

international norms. PTT Group shall ensure the effectiveness of human rights risk management and

governance to prevent complicity. This will be monitored based on PTT Way of Conduct.

Where appropriate, PTT Group will ethically and constructively participate to review and comment

on proposed legislation, regulations and emerging policy issues.

1 World Report, Human Rights Watch, https://www.hrw.org/previous-world-reports


SECTION 3 HUMAN RIGHTS POLICY AND GOVERNANCE FRAMEWORK

POLICIES AND COMMITMENT

PTT Group has Sustainability Policy to promote sustainability practices of companies within PTT

Group. PTT Group Sustainability Management Framework provides the foundation for the approach

to support the achievement of the policy which incorporates elements from, or are aligned with,

other international policies, standards and management practices to which PTT Group has

committed, such as Global Reporting Initiative (GRI), Dow Jones Sustainability Index (DJSI), the World

Business Council for Sustainable Development: WBCSD, the United Nations Global Compact and

International Standards ISO 26000. Each business unit and company within PTT Group is responsible

for ensuring the compliance with PTT Group Sustainability Policy and Sustainability Management

Framework.

Human rights is one of the ten elements of the PTT Group Sustainability Management Framework

and focuses on the rights of every stakeholder groups including vulnerable individuals and minorities

such as women, disabled, indigenous, etc. in relevant issues such as labor rights, health and safety of

employees and contractors, safeguard the environment, create a sustainable positive impact in our

host communities, and respect all human rights where we operate.

Although protecting human rights is the role of governments, we believe that our company has a

role in respecting and promoting human rights in our sphere of influence. This also presents us with

an opportunity to make positive contributions in the areas of governance, transparency, respect for

the rule of law, and socioeconomic development in the area where we operate. Moreover, all

employees shall respectfully comply with the defined principles to ensure effectiveness of all PTT

operations.

Apart from element 2 on human rights, element 3 on people is one of the key elements of the

sustainability management framework of PTT which requires management in different dimensions

that are interrelated. This is key success factor in successfully managing issues of human rights in the

ling-term. Key principles in managing people are understanding and respecting labor rights, namely,

legal rights and rights that define relationship between employers and employees under labor law

and employment. This relationship relates to employees’ basic rights, such as; right to safety working

condition, right to association, right to negotiation. The right to negotiation includes equal

opportunities, working hours, minimum wages, right not to be forced labors, right to compensation

and benefits and etc.

For more details, refer to PTT Group Sustainability Management Framework.

GOVERNANCE STRUCTURE

The governance structure for human rights management system can be in line the Sustainability

Management Manual and PTT Way of Conduct where PTT Group is divided into 2 levels as follows.

Corporate Level consists of;

o PTT Corporate; has key responsibility to define PTT Way of Conduct and shared service by

defining consistent policies of PTT Group.

o Business Group; plays a role in setting the strategies, goals, tracking performance of each

business unit closely in order to achieve excellence and create synergy.

Operational level in PTT Group includes Flagship, Business Units and its subsidiaries; focuses on

operating their own business to excellence and achievement, and to integrate PTT Way of

Conduct with the business operations to achieve PTT Group’s maximum performance.


Roles and responsibilities of material distributor

The ownership of Human Rights Management System is PTT Sustainability Management, with

responsibilities for:

Issuing the Human Rights Management System manual;

Ensuring effective implementation of the Human Rights Management System within PTT Group;

and

Defining the periodic review or when the trigger for change is to occur, including monitoring

changes that may have effect on implementation (3-year periodical review for PTT Group

Sustainability Management Framework)

Key Personnel Roles and Responsibilities (Table 1)

Sustainability Alignment Committee (SAC) oversees the implementation of Human Rights

Management System and provides direction or comments in order to demonstrate human rights

commitment in alignment with PTT Group Sustainability Management Framework;

Sustainability Management (SM) from each company under PTT Group actively assists and

supports the implementation of Human Rights Management System; and

Relevant Function /department (Subject Matter Expert: SMEs) from each company under PTT

Group ensures the effective implementation of the existing controls and performance.

Table 1 Human Rights Management Governance Structure

Human Rights Management

Governance Structure

Governance Structure

Responsible Accountable Consulted Informed

Define vision, policy and objectives SM SAC SAC SMEs

Specify roles and responsibilities SMEs SM SM SAC

Assess risks SMEs/SM SMEs/SM SAC SAC

Develop risk mitigation measures SMEs SM SM/SAC SAC

Implement risk mitigation measures SMEs SM SM/SAC SAC

Monitor and track performance SMEs SM SM SAC

Conduct audits SM SAC SAC SAC

Develop and execute corrective

actions

SMEs SM SM SAC

Conduct management review SM SAC SAC SMEs

Disclose performance SMEs/SM SM SAC SAC

POLICY DEPLOYMENT MECHANISMS

Sustainability Management team from each company is responsible for the governance and effective

deployment support of the Human Rights Management System within each company by adopting

existing policy deployment mechanisms, rules, and regulations available. This ensures effective

mitigation and control of human rights risk.


SECTION 4 HUMAN RIGHTS MANAGEMENT SYSTEM PROCESS

OVERVIEW OF MANAGEMENT SYSTEM PROCESS

PTT Group is actively in charge of its potential human rights impacts on all stakeholders throughout

the business chain by identifying human rights issues and establishing controls and management

measures into existing business process. It is good business practice to understand the potential

human rights issues and impacts associated with business operations and embed them into

management plans.

DEPLOYMENT OF HUMAN RIGHTS MANAGEMENT SYSTEM

The Management System process, introduced IPIECA Human Rights Due Diligence Process, is

adopted as the framework for the implementation. The overview of HRMS is presented in Figure 2.

PTT Group Human Rights Management System process should be regularly communicated to

relevant stakeholders and managed by relevant functions. Governance of HRMS should also be

effectively implemented by SAC. SM will present information to SAC to provide discretion on major

changes that may have impact to operation according to PTT Human Rights Management System.

Figure 2 Overview of Human Rights Management System


HRMS process involves 6 steps as follows.

1. Regulatory & Corporate Requirements

External stakeholders, voluntary commitments and regulatory described in Section 2 are the

push factors that PTT needs to ensure compliance as it could impact the company’s license to

operate. As a consequence, PTT sets corporate requirements as defined in Section 3. The

company’s vision and objectives for managing human rights are articulated and reinforced

through PTT Human Rights Policy. The objectives are directly linked to the company’s

business drivers, including the protection of capital project value, improved business

continuity, and sustained social license to operate.

Simplified approach in defining responsibilities for HRMS development and implementation

using RACI Matrix (Table 1). Subject Matter Experts (SMEs) are accountable for the

implementation of the HRMS and recommended mitigation measures. The implementation

support is provided by SM.

In addition, SAC needs to ensure that any significant changes in the external stakeholders’

expectations or regulatory are constantly updated into the company’s requirements.

2. Gap Assessment & Strategic Planning

The main objective of this process is to assess human rights risks and impacts for the

corporate and project levels.

2.1. Corporate Level: At the corporate level, SM is responsible for conducting and maintaining

Human Rights Risk Register to ensure that the overall human rights risks related to activities of

PTT are up to date. For more details, refer to Annex B. SM needs to assess overall risks by

activities and identify management measures. The review of Risk register should be conducted

when there are significant change of new or change of operation phase, or when there is

human rights incident.

In case where residual risks have medium or high impact level, Subject Matter Experts (SMEs)

needs to inform SM Working Team and/or SAC for acknowledgement and consideration for

further actions as necessary.

2.2. Operational/ Project Level: At the operational/project level, there are 2 activities involved in

the HRMS process which are Mergers and Acquisitions (M&A) and new/existing project

development.

2.2.1. M&A activity: The Human Rights Due Diligence Checklist is to be used as part of process to

enter into a new country, region, area, and new joint venture in order to screen human rights

related risks associated with the potential partners, countries, or areas of projects or

operations. For more details, refer to Annex C. Business Development (BD) should include the

findings of human rights due diligence checklist as part of their consideration for decision

making together with the list of country based human rights risks as reference (e.g. annual

World Report by Human Rights Watch2). Business Development (BD) shall submit the results

to the Strategic Investment Management Committee.

In case where the Strategic Investment Management Committee approves to invest in the

acquisitions/mergers, the project needs to conduct HRIA as part of project development. On

2 World Report 2015, Human Rights Watch, http://www.hrw.org/sites/default/files/reports/wr2015_web.pdf


the other hand, if the Strategic Investment Management Committee does not approve of the

acquisitions/mergers, the process will be eliminated out of the HRMS process.

2.2.2. New/existing project development: The Human Rights Impact Assessment (HRIA) provides a

structured process through which PTT can identify, manage, and monitor potential human

rights impacts associated with its projects. A HRIA will be conducted for all new activities or

when there is a significant deviation in the description of an existing activity. For more details,

refer to Annex D.

Together with the SM Framework, SSHEMS, CDCR Manual which involve the analyzing,

understanding and planning to respond to events, circumstances and stakeholders in which

the organization is involved so that the negative impacts (including human rights related

issues) are mitigated.

This procedure has been developed based on international standards and guidance materials

such as the International Finance Corporation’s guide to human rights impact assessment and

management and the International Petroleum Industry Environmental Conservation

Association’s human rights impact assessment process.

Any significant changes of level of human rights for project development shall be reported to

the SM Working Team and SAC and updated in the Human Rights Risk Register. For more

details, refer to Human Rights Impact Assessment (HRIA) Procedure.

3. Gap Closure

Once potential issues and impacts are identified and prioritized, the findings are to be

addressed by adopted mitigation measures and recommended practices provided in Section 5

(for corporate level) and the results or management measures from HRIA study (for

operational level) with the intent to properly address and close out the issue and impact.

4. Review & Audit

A set of indicators for monitoring, tracking and evaluating the plan is built into the

implementation process. The indicators inform the effectiveness of the process and support

opportunities for continuous improvement. Recommended indicators are provided below

(Table 2).

The corporate and each business unit and company within PTT Group need to conduct Human

Rights Self-assessment Checklist. For more details, refer to Annex D.

5. Knowledge Sharing

Once the review is completed and the findings properly analyzed, any identified opportunities

for improvement will be improved and regularly reported to the SD Working Team. The aim

of this activity is to improve the learning and integration of human rights risk management

into existing business processes.

6. Human Rights Incident Management

In case of the occurrence of human rights issues/incidents that may require immediate

attention, incidents or occurrences will be treated by SM Framework, SSHEMS, CDCR Manual

according to severity of risk. These are applied to Human Rights Management which will relate

to analysis, understanding, and planning in response to event and circumstances as well as


stakeholders. The relevant functions will participate in identifying appropriate preventative

and mitigation measures (including human rights issues).

Recommended indicators are provided in the following table.

Table 2 Recommended indicators

Topic Examples of Human Rights Indicators

Employees

(Labor Rights) Percentage of employees that are trained on issues of human rights

Average hours of trainings on labor rights for employees and executives Percentage of female employees in senior executive level

Number of grievances or lawsuits related to human rights violation by the

conduct of corporate. The incidents may not be expected or operation

mismanagement from laws or regulation on human rights (number events

on discrimination)

Employees turnover rate caused by the violation of human rights , such as;

employees resigning due to working unsafety or unhealthy condition

Society and

Community

Percentage of operation or areas of operation that are assessed on human

rights risks and those risks are recognized under the risk management plan

Number of society and community development projects to prevent and

reduce impacts to quality of life and standard of living.

Number of grievances that PTT receives and resolved, such as; number of

involuntary resettlements, number of cases of indigenous rights violations,

and etc.

Number of recurrent cases of the same incidents caused by human rights

violation, such as; violation of indigenous rights

Supply Chain Percentage of institutions and business units that conduct risk assessment

in their supply chain (Environment, social, governance, and human rights)

Percentage of suppliers that acknowledge PTT sustainable supplier code of

conduct

Percentage of contractors that have in place Human Rights policy or

guideline Percentage of suppliers that receive training on human rights

Number of suppliers whose operations are assessed on sustainability

(environment, social and governance, and human rights)

Number of suppliers’ violation cases against PTT sustainable supplier code

of conduct and Supplier ESG Assessment

Number of disruptions or severe accidents cause by mismanagement of

supply chain


Topic Examples of Human Rights Indicators

Safety and

Security

Percentage of operation or areas of operation that are assessed on safety

and security risks

Percentage of operation or areas of operation that are assessed on safety

and security risks and those risks are recognized under the risk

management plan

Percentage of subcontractor security staffs that are trained on human

rights

Number of grievances or lawsuits related to human rights violation by the

conduct of corporate. The incidents may not be expected or operation

mismanagement from laws or regulation on human rights (number human

rights violations incidents that occur with subcontractor security staffs.)

Environment Water Management

Number of projects that are results of participations of society and

community on water management

Number of disputes or conflicts with stakeholders on water management

Impact of Pollution, Waste Management and Hazardous Materials

Management

Environmentally controlled indicators that are not aligned with regulations,

such as; VOCs, Sox and NOx

Environmentally controlled indicators that have been improved.

Number of grievances due to the company’s operations caused by non-

compliance on SSHE (including waste and hazardous substances

management)

Number of lawsuits due to the company’s operations caused by non-

compliance on SSHE

Fines or penalty that is due to non-compliance of operation on SSHE

Preservation of Biodiversity

Percentage of areas of operations that risk assessment on biodiversity is

conducted.

Number of activities and areas of operations having biodiversity risks that

have risks mitigation plan

Number of development projects or research programs to support in

activities that promote biodiversity (e.g. Biodiversity Research and Training

Program: BRT.

Increasing or decreasing rate of target/ threaten, key species

Customers and

Consumers

(consumer rights)

Number of recurrent complaints on company products and services due to

the same causes

Number of violations on laws and regulations on product labelling or

standards on health, safety, security, social, and environment throughout

product life cycle. This includes number of incidents that violate consumer

rights.

Percentage of incomplete cases of providing information required by law to

customers.


SECTION 5 HUMAN RIGHTS RISK MANAGEMENT REQUIREMENTS

At PTT Group, human rights risks are managed at two levels (Corporate and Operations), in order to

define roles and responsibilities for the development and implementation of mitigation measures

and ensure the effectiveness of risk management. Issues are grouped into 6 areas, including 1)

Employee (labor rights), 2) Community (community rights), 3) Supply Chain, 4) Security and safety, 5)

Environment, and 6) Customer (consumer rights). Scope of human rights issues relevant to PTT

Group and responsible departments are provided in Table 3.

Table 3 Scope human rights issues under PTT and PTT subsidiaries’ responsibilities

Labor Rights Community

Rights Supply Chain

Security and

safety Environment

Consumer

Rights

Working

Conditions

Standards of

Living and

Quality of Life

Supplier

Engagement

Security

Management

Water Security Consumer

Health and

Safety

Freedom of

Association

and Collective

Bargaining

Community

Health and

Safety

Supplier Code

of Conduct

Security

Training

Impact of

Pollution

Data Privacy

Forced and

Compulsory

Labor

Community

Engagement

Waste and

Hazardous

Materials

Management

Child Labor Cultural

Heritage

Preservation

of Biodiversity

Safe and

Healthy

Working

Conditions

Minorities

Including

Indigenous

Peoples

Broadening

Access to

Energy

Discrimination Resettlement

1. EMPLOYEE

Within the Employee component, the relevant aspects are working conditions, freedom of

association and collective bargaining, forced /compulsory labor, child labor, safe and healthy

working conditions, and discrimination.

1.1. WORKING CONDITIONS

Relevance:

While many of conditions of work are required by law, some are set up by the company as

a legal binding agreement between employer and workers (i.e. employees, contractors,

sub-contractors, and suppliers).

Conditions of work include wages, working time, rest periods, holidays, disciplinary and

dismissal practice, maternity protection and welfare matters such as safe drinking water,

sanitation, canteens and access to medical services3.

3 ISO 26000, 2010, 6.4.4.1 Description of issue


Basic human rights risk management

Corporate supports:

Ensure that the conditions of work comply with national laws and regulations and are

consistent with applicable international labor standards4. Company’s related standards,

guidelines and procedures shall be kept up to date in accordance with applicable laws and

regulations.

Ensure corporate standards and employment regulations include description of working

conditions as listed in Relevance, including but not limited to the followings:

o Fair remuneration and wages, equal remuneration for work of equal value.

o Prohibit mandatory and non-compensated overtime and compensate workers for

overtime in accordance with laws. Company should always respect the basic human

rights of workers concerning forced labor by promoting work-life balance.

o Healthy and safe conditions of work.

o Equal opportunity for promotion and employment, without discrimination.

o Rest periods and holidays.

Ensure two-way communication channels are available to inform workers of working

condition standards or regulations.

Ensure appropriate communication between the corporate and operational levels with

regards to issues related to working conditions.

Operational responsibilities:

Implement corporate standards and employment regulations.

Ensure the effectiveness of grievance mechanisms for workers.

Additional human rights risk management (Best Practice)

Corporate supports:

Labor practices extend beyond the company’s direct employees or responsibilities that the

company has at a workplace that it owns or directly controls5.

Tripartite consultation to address social issues related employment6.

Remuneration must be enough to provide workers with a decent living for themselves and

their families.

Provide additional support to workers to help them achieve work-life balance such as

childcare and other facilities.

4 ISO 26000, 2010, 6.4.4.2 Related actions and expectations 5 ISO 26000, 2010, 6.4.1.1 Organizations and labor practices 6 ILO, 2006, Tripartite declaration of principles concerning multinational enterprises and social policy


1.2. FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING

Relevance:

Individuals have rights to assemble and gathering peacefully when a gathering takes place for

a specific purpose, where there is discussion or where ideas are proclaimed. Freedom of

assembly encompasses the right to demonstrate in groups, whether in stationary gatherings

or marches. However, this right may only be restricted by Government in circumstances that

area set down in law and are necessary to protect national security, public order, or the rights

and freedoms of others.


Corporate supports:

Allow individuals to form or join all types of association such as political parties, religious

societies, sporting and other recreational clubs, non-governmental organizations and trade

unions. Communicate the availability of associations to workers.

Allow the gathering of individuals e.g. strike but it should be exercised in conformity with

the reasonable requirements of a particular country’s laws7.

Allow the formation of trade unions to function freely, subject only to limitations that are

lawful and necessary to protect national security, public order or the rights of others8.

Individuals should not be discriminated against because of trade union membership.

Bargain collectively with workers or their representatives (i.e. trade union) when

determining wages, working conditions, and other concerns9 10.


Communicate to workers when changes in operations would have major impacts, provide

notice to the representatives of workers to jointly examine the implications.

Not obstruct workers who seek to join their own associations (e.g. trade union) or

gathering by dismissing or discriminating against them or by making any direct or indirect

threat.


Corporate supports:

Refrain from encouraging government or joining in business with organizations that restrict

the exercise of the internationally recognized rights of freedom of association and

collective bargaining11.

7 ICESCR, 1966, Article 8: Right to form trade unions and join the trade union, and the right to strike 8 ILO, 1948, Convention 87: Freedom of association and protection of right to organize 9 ILO, 1949, Convention 98: Right to organize and collective bargaining 10 UNGC, 2015, Principle 3 11 ISO 26000, 2010, 6.4.5.2 Related actions and expectations


1.3. FORCED AND COMPULSORY LABOR

Relevance:

The rights to freedom of forced or compulsory labor are subject to no restrictions or

qualifications12 13. Company risks allegations of abusing these rights if it directly makes use

of slaves, forced, bonded or involuntary prison labor; in addition, company may also risk

allegations of complicity if it benefits from the use of such labor by suppliers,

subcontractors and other business partners14.

Company can promote the elimination of all forms of forced or compulsory labor (e.g. debt

bondage, trafficking and other forms of modern slavery) when it engages through

initiatives that help raise awareness about forced labor and human trafficking.


Corporate supports:

Ensure that all forms of forced or compulsory labor is strictly prohibited by the company15 16 17 through the development of company policies and standards.

Apply and communicate company policies and standards with regards to forced or

compulsory labor to suppliers and contractors.


Emphasize to associated suppliers and contractors to acknowledge the corporate policy of

forced/compulsory labor.


Corporate supports:

Terminate the contract when suppliers or contractors are involved in any forms of forced

or compulsory labor.


Perform regular audit to ensure compliance of suppliers and contractors.

12 ICCPR, 1966, Article 8 Right not to be subjected to slavery, servitude or forced labor 13 ILO, 1930, Convention 29: Forced labor 14 ICCPR,1966, Article 8 Right not to be subjected to slavery, servitude or forced labor 15 ILO, 1930, Convention 29: Forced labor 16 ILO, 1957, Convention 105: Abolition of forced labor 17 UNGC, 2015, Principle 4


1.4. CHILD LABOR

Relevance:

Children are recognized by the International Covenant on Civil and Political Rights (ICCPR)

as being in need of special protection as required by their status as minors18.

Children may not be engaged to do work that is hazardous, arduous, and for which they

are underpaid, or to work for the same number of hours as adults.

Child labors are frequently denied the opportunity to undertake education as a result of

going to work, and their mental and physical health can suffer due to poor working

conditions, long hours of work, and ill-treatment by employers19.


Corporate supports:

Ensure that corporate employment policy is in compliance with the laws regarding

minimum age for employment20.

Apply company’s labor policies and standards to suppliers and contractors.


Communicate corporate policy of labor standards to associated suppliers and contractors

to acknowledge and comply with.


Corporate supports:

If the company has child labor in the operations or within its sphere of influence, it should

ensure that the children are removed from work and provided with appropriate alternative

(e.g. education).

Terminate the contract when suppliers or contractors are involved in child labor.


Perform regular audit to ensure that suppliers and contractors are in compliance to the

corporate labor standards.

Terminate the contract when suppliers or contractors are involved in child labor.

18 ICCPR, 1966, Article 24 Rights of protection for the child 19 ILO, 1999, Convention 182: Worst forms of child labor 20 ILO, 1973, Convention 138: Minimum age


1.5. SAFE AND HEALTHY WORKING CONDITIONS

Relevance:

Individuals have rights to healthy and safe conditions of work21 22.

Health and safety at work concerns the promotion and maintenance of the physical,

mental and social well-being of workers and prevention of harm to health caused by

working conditions23.

Company's activities and products can impact on the right to health of employees, and are

expected to ensure that their operations and products do not impact on the right to health

of people such as employees, workers, consumers and local communities.


Corporate supports:

Develop occupational health policy, and related standards, guidelines, and procedures by

analyzing the health and safety risks involved throughout company’s activities.

Communicate requirements to workers to acknowledge and act according to health and

safety standards, guidelines, and procedures.

Educate workers of health and safety issues related to occupational diseases and others

such as infectious diseases (e.g. malaria, HIV/AIDS, etc.).

Put in place preventative measurement and employees’ data privacy to ensure their

personal data and information will not be disclosed through any channels unless receiving

formal permission from employees


Implement the occupational health policy and related standards, guidelines, and

procedures.

Record health and safety performance and investigate incidents and problems to minimize

or eliminate them.

Ensure full support /installation of protective equipment /tools (e.g. personal protective

equipment, first aid kits, etc.).

Protect employees’ personal data and information through effective measurements


Corporate supports:

Even though informal workers are often not covered by domestic legislation, company

should take steps to ensure that any persons within its supply chains are not exposed to

occupational health and safety dangers.

In countries where communicable diseases, such as HIV/AIDS and malaria, are prevalent,

many companies may seek to assist local health care by offering treatment to employees

and by supporting the health infrastructure.

21 ICESCR, 1966, Article 7: Right to enjoy just and favorable conditions of work 22 ICESCR, 1966, Article 12: Right to health 23 ISO 26000, 2010, 6.4.6.1 Description of the issue


Offer HIV testing for workers. Process should be confidential and no discrimination should

follow from the results.

Control system, personnel, or functions that are responsible for confidential information

and clearly designate responsible person to control data privacy

Eliminate the use of hazardous substances in workplace or put in place adequate and

appropriate preventative measurements for health and hygiene


Build awareness and share lesson-learned of cases occur within the operation.

1.6. DISCRIMINATION

Relevance:

Discrimination means any distinction, exclusion or preference made that has the effect of

reducing or removing altogether equality of opportunity or treatment for the victim.

Company’s activities can impact on the right of nondiscrimination of their workforce,

business partners and customers. Each of these stakeholders should be treated without

discrimination, for example in recruitment, pay and training for workers and in the

provision of services to customers.

Workers are particularly vulnerable to discrimination by employers. They should not be

discriminated against or harassed, nor should they be disciplined without fair procedures.

Individuals should be protected from discrimination on different grounds including race,

color, sex, language, religion, political or other opinion, national or social origin, property,

and birth or other status (e.g. HIV/AIDS, disability, marital status, age and sexual

orientation)24.


Corporate supports:

Develop corporate policy to confirm commitment against discrimination based on race,

color, gender, religion, national extraction, social origin, political opinion, age, disability, or

other status (e.g. HIV/AIDS, marital status, etc.).

Ensure that company applies general principles in the hiring policies and procedures,

employment conditions, access to training and promotion, remuneration 25and termination

of employment.

Promote diversity in their workplace. This may take the form of permitting employees to

observe religious holidays, wear traditional attire, or through the provision of employment

opportunities for minorities.


Corporate supports:

Provide assistance for the protection and advancement of vulnerable groups (e.g.

establishing workplace for persons with disabilities, promoting of employment for youth

24 ILO, 1958, Convention 111: Discrimination (employment and occupation) 25 ILO, 1951, Convention 100: Equal remuneration


and elder workers, equal employment opportunities, balancing representation of women

in senior positions).

Prevent harassment in workplace through regular assessment of impacts of company’s

policies and activities on promotion of equal opportunities and non-discrimination26.

2. COMMUNITY

Within the Community component, the relevant aspects are standard of living and quality of

life, community health and safety, community engagement, cultural heritage, minorities

including indigenous peoples, and resettlement.

2.1. STANDARD OF LIVING AND QUALITY OF LIFE

Relevance:

The right includes access to adequate standard of living including adequate food, clothing,

housing and continuous improvement of living conditions, including sufficient water and

sanitation27.

Company may find its activities impact on the right to adequate housing if it is involved in

land transactions that require population relocation or forced evictions, be this as

landlords or to accommodate development projects or natural resource exploration.

Forced evictions are not inconsistent with the right to adequate housing if procedural

safeguards – such as comprehensive impact assessments, prior consultation and

notification, provision of legal remedies, fair and just compensation, and adequate

relocation – are deployed to minimize the adverse impacts, including on specific groups

such as women and indigenous peoples.


Corporate supports:

Develop process for risk identification that can potentially have impacts on the

community’s standard of living are identified and assessed for the levels of impacts.

Develop process for mitigation and preventive measures to control impacts on community.


Monitor and report performance or impacts.

Engage locally with relevant stakeholders to discuss about concerns related to standard of

living and quality of life and agree upon appropriate solutions.

26 ISO 26000, 2010, 6.3.10.3 Related actions and expectations 27 ICESCR, 1966, Article 11: Right an adequate standard of living


2.2. COMMUNITY HEALTH AND SAFETY

Relevance:

Company shall periodically review policy and procedure to ensure effective control impacts

of company’s operations and activities.

Company shall periodically assess health and safety impacts in community to ensure

control of impacts in accordance with regulations


Corporate supports:

Ensure that all risks that could impact the status of health and safety of the community are

identified and assessed for the levels of impacts. Mitigation and/or preventive measures

are to be implemented and monitored.

Monitor implementation of preventative measurements or mitigations in terms of

effectiveness

Raising awareness about health threats and major diseases and their prevention such as

HIV/AIDS, malaria, tuberculosis, etc.


Engage locally with relevant stakeholders, including NGOs to discuss about concerns

related to standard of living and quality of life and come up with agreed solutions.



Corporate supports:

Ensure that suppliers or contractors are made aware of human rights risks relevant to their

activities and support community health and safety.

Participate in public health campaigns.

Promote good health by contributing to access to medicines and vaccination and

encouraging healthy lifestyles (e.g. exercise, good nutrition, early detection of diseases,

annual health check-up, etc.).

2.3. COMMUNITY ENGAGEMENT

Relevance:

Community engagement is a proactive approach for company to outreach the community.

Not only it prevents and solves problems, but also fostering relationship with the locals

(organizations, governmental agents, stakeholders, etc.).

The engagement allows company to familiarize themselves with community needs and

concerns which company can prioritize and develop programs that best reflect those

requirements.

Often, the engagement is conducted as part of public participation process for EIA report.



Corporate supports:

Develop corporate standards, guidelines, and procedures to assist the engagement with

community and other stakeholders within the operational areas, in addition to public

participation as required by law.

Set up channels for communication with community including grievance mechanisms.


Implement corporate standards, guidelines, and procedures to effectively engage with

community and other stakeholders within the operational areas.

Ensure to engage with all groups of stakeholders including vulnerable groups (e.g.

indigenous peoples).

Engage meaningfully with communities and fostering ongoing two-way communication

about project impacts and benefits to achieve agreed solutions.

Engage with community in local language.


Corporate supports:

Develop process that identify, mitigate, and track potential impacts and human rights

issues throughout the lifecycle of a project into project planning.

Support employees to implement engage process with community

Consider using independent third party mediators, particularly where complex issues exist.


Contribute to social and economic development in the communities where it operates to

support the fulfilment of human rights (e.g. helping improve access to basic human needs

and livelihood opportunities).

2.4. CULTURAL HERITAGE

Relevance:

Company's activities and project development can have impacts to cultural heritage sites.

Company should identify and assess potential impacts to the sites. Findings should be

taken into account in the design of the relevant projects.


Corporate supports:

Ensure cultural heritage and traditions of community are not impacted by company's

activities. In cases where company’s activities may pose potential impacts on the cultural

heritage, ensure that measures for conservation and protection are appropriately applied.

Promote cultural activities where appropriate, recognize and value the local cultures and

cultural traditions, consistent with the principle of respect for human rights.



Implement preventive measures to protect cultural heritage in accordance with national

and international principles.

Inform and ensure that contractors or suppliers are aware of the company’s approach in

preserving the cultural heritage and are in compliance with the identified measures.

2.5. MINORITIES INCLUDING INDIGENOUS PEOPLES

Relevance:

Company may find itself dealing with an evolving set of claims and social pressures at the

intersection of corporate activity and indigenous rights. Potential human rights issues may

also include the rights of minorities, right to self-determination, and right to a cultural life.

These specific rights are to be considered when engaging with indigenous peoples and

informing them about potential impacts, benefits, and plans.

Consultation is crucial and should take place with indigenous and minority communities

whenever decisions are made that may impact on their lands, livelihoods and culture. The

claims of minorities will sometimes come into conflict with economic development

projects. The affected peoples should be involved in the consultation process where their

concerns and expectations taken into account in the design of the relevant projects.


Corporate supports:

Develop approaches (i.e. guidelines, standards, and procedures) to interact/engage and

deal with the sensitive issues such as resettlement which must be in compliance to

corporate Human Rights Policy, laws, and relevant requirements supporting rights of

minorities e.g. UN Declaration on the Rights of Indigenous Peoples, ICCPR Article 27: Right

of minorities, etc.).

Ensure the equality of accessibility and engagement with specific groups such as minorities

(including indigenous).


Ensure the effective process for meaningful engagement with specific groups such as

minorities (including indigenous). Ensure that views of indigenous communities are taken

into considerations for any actions and are understood.

In cases where indigenous peoples exists in the operational areas, ensure to understand

the context and conditions of the environment or cultural believes, prior to the

engagement with this groups of stakeholders.


Corporate supports:

Promote and implement corporate guidelines, standards, and procedures to all employees,

contractors, and suppliers in non-operated joint venture on minorities.

Promote indigenous capability through community project development to empower

indigenous people to resolve problems with appropriate measures and support them for

social transformation.


2.6. RESETTLEMENT

Relevance:

Resettlement takes place if homes, shelters, or sources of income within a community (e.g.

fishing or farming) are located on land or in marine areas needed for project development

and operations. Potential human rights issues include the right to a standard of living and

to own property.


Corporate supports:

Develop approach for resettlement (i.e. guidelines, standards, and procedures) which is

consistent with international standards from United Nations High Commissioner for

Refugees (UNHCR), IFC, etc.

Use informed decision-making where practicable in project planning on resettlement

including:

o Avoid the need for resettlement or reduce the scope of resettlement required.

o Replace land with land.

o Replace assets with assets.

o Provide monetary compensation if above is not practicable.

o Engage in meaningful consultation with communities to inform them of potential

impacts.

o Apply free, prior and informed consent of all impacted/relevant individuals including

community, minority including indigenous people, etc.

o Ensure the monitoring and assessment of indicators that reflect the successful

resettlement.

o When resettlement is unavoidable, commit to work collaboratively and transparently

with local communities, including indigenous peoples.


Effectively apply corporate approach for resettlement.

Develop ongoing monitoring and mitigation measures.


Corporate supports:

Involuntary resettlement should be conceived as an opportunity for improving the

livelihoods of the affected people.


3. SUPPLY CHAIN

Within the Supply Chain component, the relevant aspects are supplier engagement and

supplier code of conduct.

3.1. SUPPLIER ENGAGEMENT

Relevance:

To fully committed to the human rights, company must expand its commitments to

suppliers, contractors, and service providers as they are business partners who also have

risks to not only violate rights of their workers (e.g. forced and child labor, etc.) but also

negatively impact company’s reputation.

To effectively manage risks in supply chain, engagement with business partners (e.g.

suppliers, contractors, etc.) is the key to communicate them of company’s position and

those who desire to conduct business with the company must adhere to the company’s

standards and host country’s laws as minimum requirements.


Corporate supports:

Encourage business partners (i.e. suppliers, contractors, and service providers) to conduct

their business in a manner consistent with company’s standards. In addition, business

partners are encouraged to be consistent with the International Labor Organization’s core

labor principles (refer to Employee component).

Communicate expectations and requirements through variety of channels, including

company’s contracts.

Incorporate human rights criteria when assessing qualification of business partners as part

of business partner selection process.

May use internal, external or third party auditing resources to assess business partners in

the areas of health, environmental and safety standards and compliance.


Inform suppliers and contractors at the operational level on suppliers assessment in

accordance with company standard and regulation of ILO on labor rights


Corporate supports:

Monitor organizational performances in these aspects; environmental, social, and

governance (ESG) of suppliers and contractors. Monitoring should include assessment of

impact on labor, environment, human rights, society, and community.

Build awareness among business partners that have potential to violate human rights

through engagement, trainings, or workshop.


3.2. SUPPLIER CODE OF CONDUCT

Relevance:

To prevent human rights risks arising from all business partners (i.e. suppliers, contractors,

and service providers), company should develop code of conduct for all business partners

to adhere to in order to ensure compliance with company’s commitment in human rights.

Contract agreements should incorporate human rights criteria beyond legal requirements

to ensure that corporate reputations are intact such as compliance with the human rights

related principles from UNGC, UDHR, ILO, etc.


Corporate supports:

Develop supplier code of conduct to include human rights requirements including but not

limited to business ethics, labor rights, and human rights related principles specified at the

global level (e.g. United Nations Global Compact (UNGC), Universal Declaration of Human

Right (UDHR), and the International Labor Organization (ILO)’s core principles (i.e. freedom

of association, the right to collective bargaining, the elimination of forced and compulsory

labor, the abolition of child labor, and the elimination of discrimination in the workplace)).

Refer to PTT Group Supplier Sustainable Code of Conduct.28

The supplier code of conduct is to be attached with the contract for suppliers and

contractors to formally acknowledge.


Enforce suppliers at the operational level to acknowledge and act in accordance with the

supply chain code of conduct.


Corporate supports:

Establish consequences should the code of conduct be violated.


Conduct suppliers and contractors assessment regularly to ensure compliance with

business ethics or suppliers code of conduct.

4. SECURITY

Within the Security component, the relevant aspects are security management and security

training.

4.1. SECURITY MANAGEMENT

Relevance:

Working in high-risk locations may require the use of local security forces to assist in

providing protection to the assets. This will require compliance with certain guidelines to

28 PTT Group Supplier Sustainable Code of Conduct, http://www.pttplc.com/en/Opportunity/Procurement/Pages/supplier-code-of-conduct.aspx


ensure staff, contractors or visitors do not have their safety, security and position within

the country compromised. The term security forces may include military, police or private

security agencies.


Corporate supports:

Develop corporate standards, guidelines, and /or procedures that incorporate human

rights considerations to assist workers in managing security personnel /forces. These

documents may be based on the Voluntary Principles on Security and Human Rights29 and

/or basic principles on the use of force and firearms by United Nations Human Rights30.

Analyze and assess risks associated with the provision of security (e.g. security selection,

impacts of using security in the operational area).

Incorporate human rights requirements as part of contractual agreements of security

providers and communicate to business partners.

Establish a process of reporting alleged human rights issues by security providers.


Implement corporate standards, guidelines, and /or procedures related to the security

management.

Monitor of security arrangements.

Report alleged human rights issues by security providers.


Corporate supports:

Guidelines and management processes on security in the areas of operations are

consistent with the Voluntary Principles on Security and Human Rights and /or United

Nations Use of Force Guidelines.

Engage with local communities about security arrangements.


Monitor the use of equipment provided by security Provider Company.

4.2. SECURITY TRAINING

Relevance:

Security providers are communicated and engaged through meetings, training sessions,

etc. to ensure that they are fully understand their roles, responsibilities, and all

requirements with regards to human rights.

29 The Voluntary Principles on Security and Human Rights, http://www.voluntaryprinciples.org/wp-content/uploads/2013/03/voluntary_principles_english.pdf 30 Basic Principles on the Use of Force and Firearms by Law Enforcement Officials, http://www.ohchr.org/EN/ProfessionalInterest/Pages/UseOfForceAndFirearms.aspx

http://www.voluntaryprinciples.org/wp-content/uploads/2013/03/voluntary_principles_english.pdf

http://www.voluntaryprinciples.org/wp-content/uploads/2013/03/voluntary_principles_english.pdf

http://www.ohchr.org/EN/ProfessionalInterest/Pages/UseOfForceAndFirearms.aspx



Corporate supports:

Develop training modules for security providers and train the trainers to be able to deliver

key messages with regards to human rights related issues to security providers.


Train security providers regularly.


Corporate supports:

Build internal awareness on managing security in a manner that respects human rights.

5. ENVIRONMENT

Within the Environment component, the relevant aspects are water security, impacts of

pollution, waste and hazardous materials management, and preservation of biodiversity.

5.1. WATER SECURITY

Relevance:

Access to water is necessary for life and thus the fulfilment of all other rights31. Human

right entitles everyone to safe, sufficient, acceptable, affordable and physically accessible

water for personal and domestic uses. These uses include water for drinking, personal

sanitation, preparation of food, washing of clothes, as well as for personal and household

hygiene. The water provided has to be of good quality, free from elements that might harm

a person’s health.

Company’s activities can impact on access to water if pollution and over-use of local water

supplies significantly interfere with people’s enjoyment of access to water. This aspect of

the right is also particularly relevant to companies that provide water services and

companies that provide for the basic needs of their workforce and the surrounding

community. Companies can have a positive impact on rights with respect to water through

initiatives aimed at improving the accessibility and quality of water for local communities.


Corporate supports:

Develop guidelines, standards, and procedures to identify sources of water (e.g.

freshwater, groundwater, etc.), water treatments, water discharge methods and quality

that are in compliance to laws and relevance requirements with regards to water

management.

Ensure that water sources within the project areas are assessed for status of water stress

levels. If unavoidable, ensure appropriate measures are applied to prevent water conflicts

with the locals and impacts to water sources.

Ensure that company's activities do not cause impacts to the environment and community

such as water contamination and access to water sources.

Develop water consumption reduction initiatives.

31 ICESCR, 1966, Article 11: Right to an adequate standard of living



Implement corporate guidelines, standards, and procedures related to water management.

Monitor and report in regular basis water consumption, discharges, and water quality of

water sources and discharged Additional human rights risk management (Best Practice)

Corporate supports:

Provide water sources to communities within operational areas, whether or not company’s

activities impact water status in the area.

Cooperate with other organizations within the operational area to manage and prevent

water conflicts and impacts to water sources.


Engage with local communities regarding actual and potential impacts of water withdrawal

related to water conflicts as well as actual and proposed mitigation measures.

5.2. IMPACT OF POLLUTION

Relevance:

Emissions to air include pollutants (e.g. volatile organic compounds (VOCs), sulphur oxides

(SOx), nitrogen oxides (NOx), etc.), which are emitted directly by the company activities

can cause environmental and health impacts.

The company may face close scrutiny over the policies and systems in place to ensure that

pollution does not negatively impact on the right to health of workers and members of

surrounding communities.


Corporate supports:

Develop guidelines, standards, and procedures to identify sources of emissions and control

air quality to be in compliance to laws and relevance requirements with regards to air

quality.

Develop initiatives to reduce emissions of pollution.


Implement mitigation and preventive measures to prevent and reduce impacts to air

quality.

Monitor and report air pollution as a result of company’s activities.



Engage with local communities regarding actual and potential impacts of pollution related

to health risks as well as actual and proposed mitigation measures.


5.3. WASTE AND HAZARDOUS MATERIALS MANAGEMENT

Relevance:

Insufficient measures and procedures for management of waste may impact community's

health and safety where right to health is violated and standard of living has been

compromised. Effective management of waste including hazardous and non-hazardous

waste can prevent risks of environmental contamination and public's health and safety.


Corporate supports:

Develop guidelines, standards, and procedures to identify types of waste (e.g. hazardous

and non-hazardous wastes) treatment and disposal methods that are in compliance to laws

and relevance requirements with regards to waste management.

Identify sources and potential impacts of wastes produced by activities of the company and

measures to prevent and mitigate impacts.


Apply effectively corporate waste treatment and disposal methods in accordance with laws

and regulations.

Measure and report on significant sources of waste generation. Develop corrective action

plans in case of the waste-related accidents occur.


Corporate supports:

Develop initiatives to reduce or eliminate the use of hazardous materials.


Engage with local communities regarding actual and potential impacts of wastes related to

health risks as well as actual and proposed mitigation measures.

5.4. PRESERVATION OF BIODIVERSITY

Relevance:

It is the responsibility of the company to ensure that its activities or plans will not cause

ecological impacts to the area as required by law. Company may seek to not only prevent

impacts to biodiversity but also enhance the status of biodiversity and result in net positive

impacts to biodiversity.


Corporate supports:

Develop corporate commitments in preservation of biodiversity and guidelines/manuals

for implementation at the operational level.

Develop procedures to identify, assess and mitigate impacts on biodiversity and ecosystem

services including any endemic, threatened or endangered species or habitat that may be

adversely affected.



Implement corporate’s commitments, guidelines/manual, and process to manage impacts

on biodiversity in operational areas and the surroundings.

Identify, assess, and mitigate impacts on biodiversity and ecosystem services as part of

project development covering entire project life cycle for any phase of project

development in addition to the environmental impact assessment as required by law.

Assess the effectiveness of mitigation and preventive measures for the particular areas of

operations.

Monitor status of biodiversity and any impacts caused by company’s activities.

Support and engage in activities that promote efficient natural resources management as

well as biodiversity.


Corporate supports:

Give highest priority to avoiding the loss of natural ecosystems, second to restoring

ecosystems, and finally, if the former two actions are not possible or fully effective, to

compensating for losses through actions that will lead to a net gain in ecosystem services

over time.


Engage with local communities and relevant stakeholders (e.g. local government agents) to

fully understand the concerns or discuss about the nature of the areas that would help

with managing impacts on biodiversity.

5.5. BROADENING ACCESS TO ENERGY

Relevance:

Access to energy is essential for human living, nowadays. Everyone has right to access to

energy for personal use, including utilization of energy for cooking, heating, lighting,

improving quality of life, for medication, hygiene, education, and professional matter.

Although major company’s activities are not the main hindrance to access to energy,

company’s overconsumption of energy, for those countries with energy shortage, can

impact access to energy of indigenous people. However, company can provide negative

impact for community in some cases.


Corporate that provides energy service should:

Define guideline measure and approach to identify source of energy, such as, electricity,

fuel, and etc. This includes compliance with laws and regulation on energy management.

Ensure that energy sources in operation areas are assessed, if the sources are inevitable,

ensure that company has in place appropriate measure to prevent conflict on energy in

community.

Ensure that company’s activities will not have impact on access to energy of people in the

community.


Develop approach that will help improve company energy efficiency and community.


Effectively apply corporate approach for energy management.

Monitor and regularly report energy consumption, including electricity, fuel etc.


Corporate supports to:

Increase the provision of energy to the poor through innovation and scale-up of

decentralized energy solutions, such as solar lighting, biogas, biomass gasification and the

sale of low-cost energy products.

Encourage and support local social and business partners to pioneer modern energy

products to be available in the areas through building new value chain. This helps generate

significant socio-economic and environmental benefit across the world and changing the

way that energy is delivered globally.


Engage and have dialogue with local communities on the existing and potential impacts on

accessibility to energy, e.g., conflict on the access to electricity and mitigation

measurement.

6. CUSTOMER AND SOCIETY

Within the Customer and Society component, the relevant aspects are consumer health and

safety, and data privacy.

6.1. CONSUMER HEALTH AND SAFETY

Relevance:

Consumer health and safety protection involves the provision of products and services that

are safe and that do not carry unacceptable risk of harm when used or consumed. The

protection should cover both the intended use and foreseeable misuse. Clear instructions

for safe use, including assembly and maintenance, are also an important part of the

protection of health and safety.

An organization's reputation may be directly affected by the impact on consumers' health

and safety of its products and services. Products and services should be safe, regardless of

whether or not legal safety requirements are in place.

Safety includes anticipation of potential risks to avoid harm or danger. As all risks cannot

be foreseen or eliminated, measures to protect safety should include mechanisms for

product withdrawal and recall.


Corporate supports:

Ensure that the provision of products and services is safe for consumer health and safety

and that do not carry unacceptable risk of harm when used or consumed by not only

general consumers but also paying special attention to vulnerable groups.


Ensure that corporate provides clear instructions for safe use, including assembly and

maintenance of products and services as part of the protection of health and safety.

Ensure that corporate anticipates potential risks of their provisional products and service

to avoid harm or danger. As all risks cannot be foreseen or eliminated, measures to protect

safety should include mechanisms for product withdrawal and recall.


Follow preventative measurements and impact mitigations to provide safety for customers

and consumers’ health

Monitor and report implementation of safety measurement, including, measures to

protect safety should include mechanisms for product withdrawal and recall in case

products are proven to have health and safety impact.


Corporate supports:

The design of products identifies likely user groups, the intended use and the reasonably

foreseeable misuse of the process, product or service, as well as hazards arising in all

stages and conditions of use of the product or service and, in some cases, provide specially

tailored products and services for vulnerable groups.

The design of products reduces the risk by using the following order of priority: inherently

safe design, protective devices and information for users.

The development of product shall avoid the use of harmful chemicals, including but not

limited to those that are carcinogenic, mutagenic, toxic for reproduction, or persistent and

bio-accumulative. If products containing such chemicals are offered for sale, they should be

clearly labelled.

Provisional products and services should perform a human health risk assessment of

products and services before the introduction of new materials, technologies or production

methods, and, when appropriate, make documentation available to consumers.

Measures should be adopted to prevent products from becoming unsafe through improper

handling or storage.


Training on safety of product and service for users.

6.2. DATA PRIVACY

Relevance:

Increasing use of online communication (including for financial transactions) raise concerns

about how consumer privacy can be protected, particularly with regard to personally

identifiable information. Consumer data protection and privacy are intended to safeguard

consumers' rights of privacy by limiting the types of information gathered and the ways in

which such information is obtained, used and secured.

Organizations can help to maintain their credibility and the confidence of consumers

through the use of rigorous systems for obtaining, using and protecting consumer data.



Corporate supports:

Develop policy for customer and consumer’s personal data collection that is essential for

the provision of products and services or provided with the informed and voluntary

consent of the consumer should be under limit.

Develop policy and measures to obtain data by lawful and fair means, including to inform

customer and consumer objectives of personal data collection.

Develop policy and measures to ensure that consumer personal data is not disclosed, made

available or otherwise used for purposes other than those specified, including marketing,

except with the informed and voluntary consent of the consumer or when required by the

law.


Provide protection of personal data by adequate security safeguards.

Monitor and report performance according to personal data privacy measurement


Corporate supports:

Should be open about developments, practices and policies regarding personal data, and

provide readily available ways of establishing the existence, nature and main uses of

personal data.

Should disclose the identity and usual location of the person accountable for data

protection in the organization (sometimes called the data controller), and hold this person

accountable for complying with the above measures and applicable law.


Provide training or workshop on personal data privacy on a regular basis.


SECTION 6 REFERENCES

Basic Principles on the Use of Force and Firearms by Law Enforcement Officials,

http://www.ohchr.org/EN/ProfessionalInterest/Pages/UseOfForceAndFirearms.aspx

GRI, 2015, G4 Sustainability Reporting Guidelines

ICCPR, 1966, Article 24 Rights of protection for the child

ICCPR, 1966, Article 8 Right not to be subjected to slavery, servitude or forced labour

ICESCR, 1966, Article 11: Right to an adequate standard of living

ICESCR, 1966, Article 12: Right to health

ICESCR, 1966, Article 7: Right to enjoy just and favourable conditions of work

ICESCR, 1966, Article 8: Right to form trade unions and join the trade union, and the right to strike

ILO, 1930, Convention 29: Forced labour

ILO, 1948, Convention 87: Freedom of association and protection of right to organise

ILO, 1949, Convention 98: Right to organise and collective bargaining

ILO, 1951, Convention 100: Equal remuneration

ILO, 1957, Convention 105: Abolition of forced labour

ILO, 1958, Convention 111: Discrimination (employment and occupation)

ILO, 1973, Convention 138: Minimum age

ILO, 1999, Convention 182: Worst forms of child labour

ILO, 2006, Tripartite declaration of principles concerning multinational enterprises and social policy

IPIECA, 2013, Human Rights Training Tool

ISO 26000, 2010, 6.3.10.3 Related actions and expectations

ISO 26000, 2010, 6.4.1.1 Organizations and labour practices

ISO 26000, 2010, 6.4.6.1 Description of the issue

The Voluntary Principles on Security and Human Rights, http://www.voluntaryprinciples.org/wp-

content/uploads/2013/03/voluntary_principles_english.pdf

UNGC, 2015, Principle 3

UNGC, 2015, Principle 4

World Report 2015, Human Rights Watch,

http://www.hrw.org/sites/default/files/reports/wr2015_web.pdf


SECTION 7 ANNEXES

Annex A: Human Rights Related Initiatives and Relevance to PTT Group

Annex B: Human Rights Risk Assessment and Risk Register

Annex C: Human Rights Due Diligence Checklist

Annex D: Human Rights Impact Assessment and Human Rights Self-assessment Checklist

SD-บภญ-0001 ประกาศใชค้ร้ังที ่1 (24 ก.ค. 2556) A1

ANNEX A: HUMAN RIGHTS RELATED INITIATIVES AND RELEVANCE TO PTT GROUP

Organization Human Rights Initiatives/

Guidance Documents Human Rights Commitment Relevance to PTT

IPIECA Indigenous People and the

Oil and Gas Industry

Overview of key issues and emerging

good practices for the oil and gas

industry's interface with indigenous

peoples

- Business expansion: As PTT expands the Business overseas to

countries with presence of indigenous people, PTT must be in

compliance to corporate Human Rights Policy, laws, and relevant

requirements with regards to Rights of indigenous people (e.g. UN

Declaration on the Rights of indigenous Peoples)

Human Rights Due Diligence

Process

A due diligence process for human rights

is an essential part of a company's

overall risk management strategy,

especially in countries where human

rights issues may be more prevalent.

- Business expansion: For M&A activity, PTT has human rights due

diligence checklist when entering into a new country /region

/area, or joint venture

Human Rights and Ethics in

Oil and Gas Industry

Oil and gas companies are encouraged

to have activities and programs to

support the upholding of fundamental

principles of human rights

- Business expansion: Increasingly, concerns over corruption,

human rights and labor issues can deter international

corporations, especially in the oil and gas industry, from making

foreign investments. These issues also pose huge economic, social

and political risks that threaten existing operations, as PTT

expands the business oversea.




United Nations United Nations Global

Compact (UNGC)

Human rights:

- Principle 1: Businesses should support

and respect the protection of

internationally proclaimed human

rights; and

- Principle 2: Businesses should make

sure they are not complicit in human

rights abuses

- Human rights commitment: PTT's position on human rights is

publicly disclosed through the Human Rights Policy to ensure that

direct and indirect human rights abuses are completely avoided.

Labor

- Principle 3: Businesses should uphold

the freedom of association and the

effective recognition of the right to

collective bargaining;


the elimination of all forms of forced

and compulsory labor;


the effective abolition of child labor; and


the elimination of discrimination in

respect of employment and occupation.

- Employment practice: Discrimination, child labor, freedom of

association /assembly /trade union, unsafe working condition

United Nations Universal

Declaration of Human Rights

(UDHR)

Every individual and every organ of

society shall promote respect for these

rights and freedoms

- Human rights commitment: As part of PTT Human Rights Policy,

PTT shall respect the rights of individuals and human beings as

outlines in the United Nations Universal Declaration of Human

Rights




United Nations Declaration

on the Rights of Indigenous

Peoples

Affirming that indigenous peoples are

equal to all other peoples.

Indigenous peoples, in the exercise of

their rights, should be free from

discrimination of any kind.

- Human rights commitment: As part of PTT Human Rights Policy,

PTT also supports the United Nations Declaration on the Rights of

Indigenous Peoples

- Environmental protection and community engagement: Extensive

studies of risks and impacts to impacted stakeholders from PTT's

activities including seismic survey, exploration, production, and

decommissioning as part of approval process by relevant

government agencies (DMF, ONEP)

- Community engagement: Free, prior and informed consent of all

involved individuals including community, minority, indigenous

people, etc.

International Labor

Organization (ILO)

Fair recruitment initiative

- Freedom of association and the right to

collective bargaining

- Effective abolition of child labor

- Elimination of all forms of forced labor,

including human trafficking

- Elimination of discrimination in respect

of employment and occupation



Global Reporting

Initiative (GRI)

Labor practice and decent

work

- Employment

- Labor/ Management Relations

- Occupational health and safety

- Training and education

- Diversity and equal opportunity

- Equal remuneration for women and

men

- Labor practices grievance mechanisms

- Employment practice: discrimination, child labor, freedom of





Supplier assessment for labor practices - Supplier management: PTT expects suppliers to adhere to the

PTT Sustainable Supplier Code of Conduct which includes labor

practice criteria as part of the requirements

Environment Water - Environmental protection: For on-shore operations, water

sources significantly affected by withdrawal of water needs to be

identified and mitigations and monitoring measures need to be

implemented

Emissions - Environmental protection: PTT commits in reducing GHG

emissions and set GHG reduction target as corporate KPI

Effluents and wastes - Environmental protection: To prevent impacts to society,

environment and company, PTT commits to zero significant spills,

zero waste to landfill, and zero discharge of produced water

Biodiversity - Environmental protection: Extensive studies of risks and impacts

to environment (including impacts on biodiversity such as

endangered species, etc.) from PTT's activities including seismic

survey, exploration, production, and decommissioning as part of

approval process by relevant government agencies (DMF, ONEP)

- Environmental protection: PTT commits to create net positive

impact to biodiversity. Management approach include PTT Group

Biodiversity Statement, Biodiversity Management Guideline,

Biodiversity Action Plan

Supplier environmental assessment - Supplier management: PTT expects suppliers to adhere to the

PTT Sustainable Supplier Code of Conduct which includes

environmental criteria as part of the requirements

Environmental grievance mechanism - Human rights commitment: PTT's grievance channels are

available for both internal and external stakeholders to ensure the

effectiveness of operations




Human rights - Investment - Business expansion: Increasingly, concerns over corruption,

human rights and labor issues can deter international

corporations, especially in the oil and gas industry, from making

foreign investments. These issues also pose huge economic, social

and political risks that threaten existing operations, as PTT

expands the business oversea.

- Employment practice: Provide human rights training to

employee

- Security practices - Employment practice: Provide human rights training to security

personnel

- Indigenous rights - Community engagement: Track cases of violation involving rights

of indigenous people. Free, prior and informed consent of all


people, etc.

- Human rights grievance mechanisms - Human rights commitment: PTT's grievance channels are



- Assessment - Human rights commitment: PTT's human rights risk assessment

- Non-discrimination

- Freedom of association and collective

bargaining

- Child labor

- Forced or compulsory labor


association/assembly/trade union, unsafe working condition

- Supplier human rights assessment - Supplier management: PTT expects suppliers to adhere to the

PTT Sustainable Supplier Code of Conduct which includes human

rights criteria as part of the requirements




Society - Local community - Community engagement: PTT proactively engages with relevant

stakeholders to understand needs and concerns

- Community development: PTT improve quality of life of

community through social and community development projects

- Supplier assessment for impacts on

society

- Supplier management: PTT expects suppliers to adhere to the

PTT Sustainable Supplier Code of Conduct which includes social

impact criteria as part of the requirements

- Grievance mechanisms for impacts on

society

- Human rights commitment: PTT's grievance channels are



International Finance

Corporation (IFC)

- Performance Standards for

Environmental and Social

Sustainability

- UN Guiding Principles on

Business and Human Rights

and IFC Sustainability

Framework - The International Bill of

Human Rights and IFC

Sustainability Framework

Performance Standard 1: Assessment

and management of environmental and

social risks and impacts

- Environmental protection and community engagement:

Extensive studies of risks and impacts to environment and

community from PTT's activities including seismic survey,

exploration, production, and decommissioning as part of approval

process by relevant government agencies (DMF, ONEP)

Performance Standard 2: Labor and

working conditions


association/assembly/trade union, unsafe working condition




Performance Standard 3: Resource

efficiency and pollution prevention

- Seismic survey: Restricted access to natural resources (e.g.

marine animals)

- Development and production: Potential release of

chemical/hydrocarbon spills, wastes, pollutions (e.g. NOx, SOx,

VOC)

Performance Standard 4: Community

health, safety, and security

- Seismic survey: Extension of seismic lines and denotation of

explosives to community concerning health and safety

- Exploration and appraisal drilling: Health and safety risk to local

community when installing navigational beacons

- Security management: Employment of security personnel

(armed or unarmed) as required at some of the operations such as

Mozambique and Algeria which may be in direct contact with local

people or protesters

Performance Standard 5: Land

acquisition and involuntary resettlement

- Environmental protection: Extensive studies of risks and impacts

to community from PTT's activities including seismic survey,

exploration, production, and decommissioning as part of approval

process by relevant government agencies (DMF, ONEP)



people, etc.

Performance Standard 6: Biodiversity

conservation and sustainable

management of living natural resources

- Seismic survey: Restricted access to natural resources (e.g.

marine animals), extension of seismic lines and denotation of

explosives to area of cultural heritage, natural resources (e.g.

hunting ground)

- Development and production: Potential release of

chemical/hydrocarbon spills, wastes, pollutions (e.g. NOx, SOx,

VOC) that cause negative impacts to biodiversity




Performance Standard 7: Indigenous

peoples


impacted/relevant individuals including community, minority

including indigenous people, etc.

- Business expansion: As PTT expands the business oversea to

countries with presence of indigenous people, PTT must be in

compliance to corporate Human Rights Policy, laws, and relevant

requirements with regards to rights of indigenous people (e.g. UN

Declaration on the Rights of Indigenous Peoples)

Performance Standard 8: Cultural

heritage

- Seismic survey: Extension of seismic lines and denotation of

explosives to area of cultural heritage, natural resources (e.g.

hunting ground)

International

Organization for

Standardization

ISO26000 Social

Responsibility: Human rights

Issue 1: Due diligence

Issue 2: Human rights risk situations

Issue 3: Avoidance of complicity

Issue 4: Resolving grievances

Issue 5: Discrimination and vulnerable

groups

Issue 6: Civil and political rights

Issue 7: Economic, social and cultural

rights

Issue 8: Fundamental principles and

rights at work

- Business expansion: For M&A activity, PTT has human rights due

diligence checklist when entering into a new country/region/area,

or joint venture

- Environmental protection and community engagement: All

operation and key functions need to identify human rights risks

within the scope of work in order to prevent impacts to company,

society or environment in the future

- Human rights commitment: PTT Business Ethics (code of

conduct) covers human rights related issues such as

discrimination, political contribution, rights of stakeholders, etc.

Labor practices Issue 1: Employment and employment

relationships

Issue 2: Conditions of work and social

protection

Issue 3: Social dialogue

Issue 4: Health and safety at work

Issue 5: Human development and

training in the workplace

- Employment practice: Transparent and non-discriminated

employment procedures

- Employment practice: Employee Manual covers relevant

information which an employee should be informed to e.g. rights

of employee, work conditions, health and safety, expected

behaviors, etc.




The environment Issue 1: Prevention of pollution

Issue 2: Sustainable resource use

Issue 3: Climate change mitigation and

adaptation

Issue 4: Protection of the environment,

biodiversity and restoration of natural

habitats

- Environmental protection: PTT commits in reducing GHG

emissions and set GHG reduction target as corporate KPI

- Environmental protection: For on-shore operations, water

sources significantly affected by withdrawal of water needs to be

identified and mitigations and monitoring measures need to be

implemented

- Environmental protection: Extensive studies of risks and impacts

to environment (including impacts on biodiversity such as

endangered species, etc.) from PTT's activities including seismic

survey, exploration, production, and decommissioning as part of

approval process by relevant government agencies (DMF, ONEP)

- Environmental protection: PTT commits to create net positive

impact to biodiversity. Management approach include PTT Group

Biodiversity Statement, Biodiversity Management Guideline,

Biodiversity Action Plan

Fair operating practices Issue 5: Respect for property rights - Community engagement: Free, prior and informed consent of all

impacted/relevant individuals including community, minority

including indigenous people, etc.

Community involvement

and development

Issue 1: Community involvement

Issue 2: Education and culture

Issue 6: Health

Issue 7: Social investment

- Community engagement: PTT proactively engages with relevant

stakeholders to understand needs and concerns

- Community development: PTT improve quality of life of

community through social and community development projects




Extractive Industries

Transparency Initiative

(EITI)

Transparently disclose

payment to government

(e.g. royalties) as an

initiative to good

governance and

accountability. It is also an

approach that involves

multi-stakeholder group to

ensure that the rights of civil

society and company will

not be violated or limited

More openness around how a country

manages its natural resource wealth is

necessary to ensure that these

resources can benefit all citizens.

- Business expansion: PTT publicly endorse EITI where PTT

discloses actual financial information to multi-stakeholders as

guided by the applicable laws. PTT also strictly complies with the

contractual obligations of the projects in the host countries where

PTT operates.

Dow Jones Sustainability

Indices (DJSI)

Labor practice and decent

work - Diversity - Equal Remuneration - Freedom of Association - Human Rights Commitment - Human Rights Due Diligence - Human Rights Assessment - Human Rights Disclosure

- Employment practice: Human Rights Risks and Impact

Assessment, discrimination, child labor, freedom of association

/assembly /trade union, unsafe working condition

Note: See PTT Group Sustainability Management Framework at http://www.pttplc.com/th/Sustainability/PTT-Sustainability/Governance/Pages/Sustainability-

Governance-and-Framework.aspx

SD-บภญ-0001 ประกาศใชค้ร้ังที ่1 (24 ก.ค. 2556) B1

ANNEX B: HUMAN RIGHTS RISK ASSESSMENT AND RISK REGISTER

The intention is to have a corporate risk register as well as individual project registers. The following

the risk assessment process will be used to generate a risk register. SM needs to assess overall risks

by activities and identify management measures. The review of Risk register should be conducted

when there are significant change of new or change of operation phase, or when there is human

rights incident. Human Rights Risk Assessment and Human Rights Risk Register are summarized

below.

The Human Rights Risk Assessment process includes seven key steps, as identified in the following

figure. These steps are further described below.

1. DEFINE ASSESSMENT SCOPE

Each relevant function reports information on business activities and geographical locations to

define scope of company business. This includes types of business and countries of

operations.

2. DETERMINE HUMAN RIGHTS CONTEXT

2.1 IDENTIFY ISSUES IN AREAS THAT HAVE BUSINESS OPERATION

Each relevant function identifies human rights issues in the country of business operation due

to human rights situation in each country that have different condition, both in issues and

urgency in resolution. The information on human rights issues for the country and regional

level can be found in Human Rights Watch, Business & Human Rights Resource Center, and

Office of the High Commissioner for Human Rights (OHCHR).

2.2 IDENTIFY ISSUES ACCORDING TO TYPES OF BUSINESS AND INDUSTRY

Each relevant function identifies human rights issues according to types of business and

industry due to the fact that each industry relates to different human right risks. The

information on human rights issues for the country and regional level can be found in Business

and Human Rights resource Centre (Web database).

7. Monitor and Evaluate

6. Determine Residual Risks

5. Identify Human Rights Mitigation & Controls

4. Determine Human Rights Risks

3. Identify Potential Human Rights Risks

2. Determine Human Rights Context

1. Define Assessment Scope


3. IDENTIFY OPERATIONS AND POTENTIAL HUMAN RIGHTS RISKS.

3.1 IDENTIFY ISSUES IN THE AREA OF OPERATIONS

Relevant functions mutually analyze linkage on human rights context according to topic 2 on

these following business operations. The relevant functions that require screening of human

rights issues by considering direct or indirect involvements that could lead to human rights

violations, for instance, the company should report on misconduct of deployment of state

security force as the issue can place the company at risk of complicity unless any

measurements are done to tackle the issue.

3.2 IDENTIFY AND ASSESS INDIVIDUAL RIGHTS IN THE AREAS OF OPERATIONS

Human rights of individual is identified by considering issues at the operational level according

to topic 3.1, such as, individual rights that are relevant to supplier and contractors on child

protections and rights to work in a fair and appropriate working conditions, please refer to

Guide to Human Rights Impact Assessment and Management (HRIAM) of International

Finance Corporation (IFC).

4. DETERMINE HUMAN RIGHTS RISKS RELEVANT FUNCTIONS ASSESS RISKS BY CONSIDERING

IMPACT AND LIKELIHOOD.

Assessment of human rights risks in this guideline emphasizes risks assessment on business

operations that may have direct and indirect impacts on human rights. The two criteria will be

placed in matrix to find the level of risk which can be considered in 4 levels, e.g., critical,

major, moderate, and minor (see the picture below).


Impact and Opportunity Assessment Criteria can be considered as followings;

Impact Level and Description of Impacts:

Critical (4)

Human rights impacts affect a larger scale or targeted at particular population groups (gross

human rights abuse) beyond the scope of the operational area

Operation is unable to control or remediate human rights impacts to restore the ability of an

individual to enjoy his or her human rights

Impacts/situations of human rights abuses require the involvement of independent, trusted

expert advice from outside in helping it reach decisions that are credible and seen by others as

credible together with the operation

Major (3)

Operation is knowingly providing practical assistance or encouragement that has a substantial

effect on the commission of human rights violation (Legal Complicity)

Human rights of stakeholders are violated by the operation and value chains

Operation has disputes over human rights related concerns with vulnerable individuals/groups

within the operational areas

Moderate (2)

Operation is seen to benefit from abuses committed by other (Non-legal Complicity)

Business fails to provide response to or communication on the human rights related concerns

raised by internal or external individuals or groups

Minor (1)

Potential impacts of human rights related concerns raised by internal or external individuals or

groups are resolved/prevented by the operational level grievance mechanism

Likelihood Level and Description of Likelihood:

Likely (4): The event has occurred in the operation several times per year (>25%)

Possible (3): The event occurred in the operation several times (10-25%)

Infrequent (2): The event rarely occur in the operation, but possible to occur (1-10%)

Rare (1): The event occurred several times in the industry of the operation but unlikely to

happen in the operation (<1%)

5 IDENTIFY HUMAN RIGHTS MITIGATIONS & CONTROLS

Relevant functions identifies existing human rights approach, standard, and measures (policy,

regulation, manual, procedure, and etc.) that can be utilized in managing human rights issues

in the areas of operations with potential risks according to the assessment in topic 4.This is to

mitigate and control the severity of human rights impacts at the corporate and operational

levels.

6 DETERMINE RESIDUAL RISKS

Relevant functions determine residual risks by considering efficiency in managing risks

according to topic 5. However, if remaining residual risks are considered to be moderate or

higher, relevant functions should prepare risks mitigation plan to make those risks to the

acceptable levels.

7 MONITOR AND EVALUATE

In case risks (after control and mitigation) are in the moderate or higher, the relevant Subject

Matter Expert (SMEs) or Sustainability Management of each company is responsible for to


informing SM or SAC in order to consider appropriate measurements. Monitoring and

evaluation should be undertaken to ensure efficiency of existing risks mitigation and control.

Human Rights Risk Register

Human Rights Risk Register shall be conducted in case of significant changes in new business or

structural changes, including the significant human right incident. Relevant functions shall regularly

monitor factors that may lead to the changes in human rights risks assessment result in order to

identify and prevent human rights impact. These following factors should be closely monitored;

Changes and/or efficiency of human rights regulation and standards etc. due to the fact that the

factor can have impact residual risks

Compliance to law and regulation can help prevent impact to stakeholders Human rights issues in

the country of business operation as the new or urgent issues can result in company human

rights risks.

Changes in business activities/ industry can have different level of involvement of human rights

issues.

To ensure efficiency of existing risks mitigation and control, relevant functions should monitor

human rights performance at any level. Relevant functions shall report high and critical human rights

risks to those in charge to have appropriate preventative and mitigation plan.

The company shall conduct human rights risks assessment with the relevant functions on annual

basis or based on requirement to consider changes in human rights issues in business activities and

mitigation and control. This is to ensure that company comprehensively considers relevant issues

when assessing relevant corporate human rights risks as Human Rights Risk register as followings;


1. Activity 2. Human Rights

Issue

3. Description of Impact 4. Human

Rights Risk

5.Relevant Human

Rights Initiatives/Standards

6.Mitigation

Measures*

7.Residue

Risks

8.Additional

Measures

Security Management

Employment of

security personnel.

It is anticipated

that PTT will

require the

presence of

security forces at

some of its

operations.

Use of

disproportionate

force

Acting with impunity

when responding to

protests or other

forms of community

outcry

Violation of

international

humanitarian law

Complicity in a

human rights

violation

There is potential for PTT security

forces to use disproportionate

force when responding to

community or employee protests

(or other expressions of

community outcry). For example,

there is potential for a protest to

escalate into violence and for

security forces to respond in a way

that is results in the exercise of

disproportionate force.

There is potential for PTT Group to

be complicit in a human rights

violation - i.e. guilty by association

- when state security forces or

local police forces get involved in a

project related issues or incident.

The result, in some cases, has been

wide-spread media attention and

reputational damage.

Impact: 4

Likelihood: 3

Risk: High

Right to life, liberty, and

security of person

Freedom from cruel, inhuman,

and degrading treatment or

punishment

Freedom of assembly

Right to freedom from

arbitrary arrest and exile

Right of detained persons to

humane treatment

Right to effective remedy

Code of conduct

for security

personnel (and

consequences if

violations occur)

Training for all

security forces

(regarding

appropriate

behaviors and

responses)

Monitor security

personnel

performance

Remark: *Mitigation Measures should be monitored to ensure that they are effectively mitigating the identified risk. The human rights risk assess matrix developed comprises of an overview of the various activities conducted by PTT Group and their associated Human Rights risks. The risk matrix consists of: 1. Determination of PTT Group's key activities; 2. Determination of human rights issue arising from PTT Group's key activities; 3. Determination of the human rights impacts arising from these key activities; 4. Determination of human rights risks arising using an amended PTT corporate risk assessment matrix; 5. Determination of the various human rights initiatives/standards applicable; 6. Determination of the various mitigation measures which may be undertaken; 7. Residual risks to be determined upon conducting the PTT GROUP Human Rights self-assessment process; 8. Development of additional measures in place to further manage the risk arising.

SD-บภญ-0001 ประกาศใชค้ร้ังที ่1 (24 ก.ค. 2556) C1

ANNEX C: HUMAN RIGHTS DUE DILIGENCE CHECKLIST

The Human Rights Due Diligence Checklist is to be used as part of process to enter into a new

country, region, area, and new joint venture in order to screen human rights related risks associated

with the potential partners, countries, or areas of projects or operations. Example of Human Rights

Due Diligence Checklist is provided in the following table

Human Rights Due Diligence Checklist Response

Yes No

1. General situation in the country/ region (through a desktop research):

1.1. Is there a human rights issue in the country/ region/ area of project? (Reports

may be reported by UN, Amnesty International, Human Rights Watch,

International Crisis Group)

2. Relevance to PTT Group (combined approach: desktop/ field research)

2.1. Are PTT Group’s planned activities dependent on entities or groups (e.g.

tribes, companies) known to be involved in the violation of human rights?

2.2 Would PTT Group directly or indirectly benefit from human rights violations

committed by the counterparty in relation to the object to be purchased?

3. Selection of business partners

3.1 Does the selected business partner have commitments, policies, processes

and controls related to human rights management in the aspects of employee,

community, supply chain, environment, etc.?

3.2 Does the selected business partner have a history of human rights violations?

3.3 Does the selected business partner have human rights policy? If not, does the

selected business partner have other evidence that shows its commitment to

respecting the basic rights of relevant stakeholders?

Remark: See human rights issue in the country/ region at Human Rights Watch, Business & Human Rights Resource

Center (https://business-humanrights.org/en/corporate-legal-accountability/case-profiles/legal-

case-map)

SD-บภญ-0001 ประกาศใชค้ร้ังที ่1 (24 ก.ค. 2556) D1

ANNEX D: HUMAN RIGHTS IMPACT ASSESSMENT AND SELF-ASSESSMENT CHECKLIST

The Human Rights Impact Assessment (HRIA) provides a structured process through which PTT can

identify, manage, and monitor potential human rights impacts associated with its projects. A HRIA

will be conducted for all new activities or when there is a significant deviation in the description of

an existing activity.

Human rights can be integrated into environmental, social and health impact assessments (ESHIAs),

which the oil and gas industry routinely uses to evaluate projects and activities. However, if the key

human rights risks are captured in an ESHIA, it would be required a separate or stand-alone HRIA

report.

A HRIA shall be undertaken when the operation is located in a high-risk operating environment. This

includes:

Conflict zones: Conflict situations present a range of challenges, often including weak or limited

protection of human rights;

Weak governance: This includes allegations past or present of bribery and corruption. The

corrupt management of public resources compromises the government’s ability to deliver an

array of services, including health, educational and welfare services, which are essential for the

realization of economic, social and cultural rights.

Mismatch between local practices and international human rights standards, including local

cultural practices that contravene human rights standards; and

Legacy issues: This includes past or present allegations of human rights violations by industry

located near or adjacent to the operation, as well as allegations of local human rights violations

committed by organizations with a relationship to the operation (e.g. business partners,

suppliers, contractors).

The HRIA includes five key steps, as identified in the following figure. These steps are further

described below.

1. Planning and Scoping

2. Data Collection

and Baseline Development

3. Analysing Impacts

4. Impact Mitigation

and Management

5. Reporting and

Evaluation


1. Planning and Scoping

The first step in the impact assessment process should be a scoping exercise. This will help

identify at a high level the likely receptors to be impacted by the project. This information will

help focus the baseline and impact assessment on the likely impacts.

2. Data Collection and Baseline Development

The baseline provides an understanding of the existing human rights environment. It is against

this description that the likely impacts (or changes) will be accessed and monitored over time.

The following table provides a description of what information should appear in the baseline.

Section Description

Existing country

situation

A description of the existing human rights situation within the

country of operation should be included. This includes previous

allegations of human rights violations as well as conflict-affected

areas, zones of weak governance and/ or areas where human

rights commitments are poorly implemented. This will help to

better understand the complexity of the operating environment

and the areas where complicity could occur.

Regulatory framework The baseline should include a description of the human rights

regulatory framework within the country. This includes the human

rights conventions to which the country is a signatory.

Local communities The baseline should include a description of the local community

(or communities) that may be impacted by the project. This should

include a brief overview of:

Key demographics (e.g. population size, presence of

vulnerable or disadvantaged groups, ethnicity, religion);

Community infrastructure and services (e.g. access to

water and sanitation, health care services);

Livelihood indicators (e.g. unemployment rates, income

levels, industries of employment); and

Landownership arrangements, particularly if involuntary

resettlement is likely to occur.

In addition, the description of local communities should include an

overview of stakeholder perceptions of the project and concerns

regarding their human rights.

Cultural context The baseline should include a description of cultural values,

including tangible and non-tangible values, located within the

project area. This includes the groups that use these values that

exist.

Legacy issues In a number of countries, the business community has been

subject to allegations of human rights violations. These legacy

issues should be identified in the baseline. This will help PTT

Group not repeat the mistakes of other operators.

Typically, baseline data is collected in a two-phased approach. This includes:


Phase 1: Desktop review of secondary data (i.e. publically available information). This

includes reports generated by government and non-governmental organisations.

Phase 2: Collection of primary data. There are often gaps in the data publically available, it

is often necessary for primary data to be collected. The PTT project team should be

informed prior to the collection of any primary data.

3. Analyzing Impacts

The assessment of the predicted impacts will need to include consideration of the following

types of impacts:

Impacts that may be experienced by local community members as a result of the project.

Particular consideration should be given to disadvantaged and vulnerable stakeholders –

e.g. the poor, women headed households, Indigenous Peoples;

Impacts that may be experienced by the project’s workforce;

Impacts that may arise through the project’s supply chain. This will help to reduce the

potential for PTT Group to be complicit in a human rights violation.

Impact associated with the employment and/ or contracting of security forces.

The level of impact will be assessed against the human rights risk rating scale (See Annex B).

For impacts which contains medium to extreme level of impacts, project team must develop

management measures to control these impacts (refer to next step). Refer to the risk rating

scale of human rights risk assessment for description of different levels of impacts and

likelihood.

4. Impact Mitigation and Management

Once the impacts have been assessed, management measures (also referred to as controls)

will need to be selected. The focus should be on mitigating the potential negative impacts to

as low as reasonably practicable and enhancing the potential positive impacts. The

development for management measures is applied to projects which have been assessed to

have medium to extreme level of human rights impacts. When mitigation measures are in

place, gap closure and review & audit plans should be prepared. Once the management

measures have been identified, the impacts should be re-assessed. This is referred to as the

residual impact.

5. Reporting and Evaluation

Any significant changes on human rights issues regarding business development shall be

reported to the SM Working Team and SAC and updated in the Human Rights Risk Register.

Human Rights self-assessment indicators, monitoring and assessment will be implemented

and identified in human rights management system. The indicators show effectiveness of

implementation and can support opportunity in continuous development. Company and

relevant functions (including business partners, suppliers, contractors) are required to conduct

Human Rights Self-assessment Checklist as the following table.


Project Requirements Response

(yes / no)

Controls Comments/

Recommendations

Employee (Labor Rights)

Working conditions

Implement corporate standards and

employment regulations.

Ensure the effectiveness of grievance

mechanisms for workers.

Freedom of association and collective bargaining

Communicate to workers when changes in

operations would have major impacts, provide

notice to the representatives of workers to

jointly examine the implications.

Not obstruct workers who seek to join their

own associations (e.g. trade union) or gathering

by dismissing or discriminating against them or

by making any direct or indirect threat.

Forced and compulsory labor

Emphasize to associated suppliers and

contractors to acknowledge the corporate

policy of forced/compulsory labor.

Child labor

Communicate corporate policy of labor

standards to associated suppliers and

contractors to acknowledge and comply with.

Safe and healthy working conditions

Implement the occupational health policy and

related standards, guidelines, and procedures.

Record health and safety performance and

investigate incidents and problems to minimize

or eliminate them.

Ensure full support /installation of protective

equipment /tools (e.g. personal protective

equipment, first aid kits, etc.).

Discrimination

Support, protect, and encourage non-

discriminatory behaviors for the disadvantaged

groups, e.g., working stations for

disadvantaged groups, support the

employment of youth and aged groups.

Community

Standard of living and quality of life

Regularly Monitor and report performance or

impacts.

Engage locally with relevant stakeholders to

discuss about concerns related to standard of

living and quality of life and agree upon

appropriate solutions.

Community health and safety



(yes / no)

Controls Comments/

Recommendations


Engage locally with relevant stakeholders,

including NGOs to discuss about concerns

related to standard of living and quality of life

and come up with agreed solutions.

Community engagement

Implement corporate standards, guidelines,

and procedures to effectively engage with

community and other stakeholders within the

operational areas.

Ensure to engage with all groups of

stakeholders including vulnerable groups (e.g.

indigenous peoples).

Engage meaningfully with communities and

fostering ongoing two-way communication

about project impacts and benefits to achieve

agreed solutions.

Cultural heritage

Implement preventive measures to protect

cultural heritage aligned with basic principles in

the country and international levels.

Inform and ensure that contractors or suppliers

are aware of the company’s approach in

preserving the cultural heritage and are in

compliance with the identified measures.

Minorities including indigenous peoples

Ensure the effective process for meaningful

engagement with specific groups such as

minorities (including indigenous). Ensure that

views of indigenous communities are taken

into considerations for any actions and are

understood.

In cases where indigenous peoples exists in the

operational areas, ensure to understand the

context and conditions of the environment or

cultural believes, prior to the engagement with

this groups of stakeholders.

Resettlement

Effectively apply corporate approach for

resettlement.

Develop ongoing monitoring for mitigation

measures.

Supply Chain

Supplier engagement

Inform suppliers at the operational level and

comply with approach in alignment with

company standards and ILO’s international law



(yes / no)

Controls Comments/

Recommendations

on labor rights

Supplier code of conduct

Enforce suppliers at the operational level to

acknowledge and act in accordance with the

supply chain code of conduct.

Security

Security management

Implement corporate standards, guidelines,

and /or procedures related to the security

management.

Monitor of security arrangements.

Report alleged human rights issues by security

providers.

Security training

Train security providers regularly.

Environment

Water management

Implement corporate guidelines, standards,

and procedures related to water management.

Monitor and report water consumption,

discharges, and water quality of water sources

and discharged water.

Impact of pollution

Implement mitigation and preventive measures

to prevent and reduce impacts to air quality.

Monitor and report air pollution as a result of

company’s activities.

Waste and hazardous materials management

Apply corporate waste treatment and disposal

methods effectively.

Measure and report on significant sources of

waste generation. Develop corrective action

plans in case of the waste-related accidents

occur.

Preservation of biodiversity

Implement corporate’s commitments,

guidelines/manual, and process to manage

impacts on biodiversity in operational areas

and the surroundings.

Identify, assess, and mitigate impacts on

biodiversity and ecosystem services as part of

project development covering entire project

life cycle for any phase of project development

(i.e. seismic survey, exploration, production,

decommissioning), in addition to the

environmental impact assessment as required

by law.



(yes / no)

Controls Comments/

Recommendations

Assess the effectiveness of mitigation and

preventive measures in place.

Monitor status of biodiversity and any impacts

caused by company’s activities.

Broadening Access to Energy

Adopt and implement approach, standard, and

procedure on energy management

Monitor and report regularly energy

consumption on these parameters; electricity,

fuel, and etc.

Customers and Consumers (Consumer Rights)

Health and safety of customers

Compliance with preventative and mitigation

measures to ensure customer and consumer’s

health and safety including product

stewardship

Monitor and regularly report energy

consumption, including electricity, fuel etc.

Data Privacy

Protect customers and consumers data privacy

with effective measure

Monitor and report performance of

preventative measure and protection

customers and consumers data privacy