PTT

PTT’s target is to peak its scope 1 and 2 emissions at 50 million tonnes of CO2 equivalent (tCO2e) by 2030, which the company says will be 20% lower than its counterfactual business-as-usual scenario where it would reach 62.3 million tCO2e by 2030. The company’s scope 1 and 2 emissions in 2019 were 31 million tCO2e, which means the target will still see the company’s emissions rise by 61% by 2030.

PTT Exploration and Production, the company’s upstream subsidiary, has set a target for a 25% reduction in scope 1 and 2 emissions intensity between 2012 and 2030. However, this target scored low on the benchmark assessment as it is unambitious and only covers a small proportion of PTT’s overall scope 1 and 2 emissions. The company also has no scope 3 emissions target, despite these accounting for 80% of its total scope 1, 2 and 3 emissions in 2019.

PTT’s scope 3 emissions from upstream production are expected to exceed its 1.5°C carbon budget by 64% between 2019 and 2050. This is based on the company utilising all its remaining reserves from its existing and approved fields. Moreover, according to the International Energy Agency (IEA), no new oil and gas fields can be approved for development under a 1.5°C scenario. Despite this, PTT continues to explore for new oil and gas.

PTT has made some progress in its management of climate change issues. It has implemented board-level oversight of climate change and renumeration for board members and executives that is linked to the company’s carbon intensity. However, it is unclear what emissions this remuneration incentive covers or what proportion of overall renumeration it accounts for.

PTT is using an internal carbon price of USD 20 per tonne of carbon for new investment decisions. However, it has not disclosed the resilience of its existing assets to different carbon prices. The company has a transition plan, but this lacks key elements, most notably measures to reduce scope 3 emissions and detailed financial commitments to develop low-carbon energy. The company also needs to disclose more information on the results of its climate scenario analysis.

PTT has some plans to develop low-carbon business activities, though these lack detail and could be more ambitious. PTT’s power subsidiary Global Power Synergy Public Company Limited (GPSC) has a capacity of 101 megawatts (MW) of solar power, 449 MW of hydropower and 12 MW of waste to energy. The company has not disclosed the profitability of its renewables business yet.

PTT plans to expand solar and wind power projects in India, China, Thailand and Vietnam to reach a capacity of 3 GW by 2025 and 8 GW by 2030. PTT is also aiming for 100 electric vehicle chargers by the end of 2021, up from 30 in 2019, but does not have public electric vehicle charging plans beyond 2021. The company also offers energy efficiency services through PTT Energy Solutions, though no information was found on the company’s plan to scale up this business.

PTT intends to peak its scope 1 and 2 emissions only by 2030, when they are projected to be 61% higher than in 2019. It is targeting a 25% reduction in scope 1 and 2 emissions intensity between 2012 and 2030 in its upstream business, but this target is not nearly ambitious enough to be aligned with 1.5°C scenario.

PTT is seeking to reduce its scope 1 and 2 emissions intensity through reduction of flaring and methane and energy efficiency measures. It is planning to expand renewables in its portfolio to a capacity of 3 GW by 2025 and 8 GW by 2030. It is also seeking to limit coal sales and increase liquified natural gas (LNG) sales.

PTT has a supplier sustainability code and evaluation system, which requires suppliers to monitor and reduce their greenhouse gas emissions. Further, PTT is focusing on developing its gas and renewables business. PTT Exploration and Production invested USD 613,000 in a carbon capture and storage (CCS) pilot project in 2019.

PTT’s scope 1 and 2 emissions intensity was estimated to have increased slightly between 2014 and 2019. Its scope 1, 2 and 3 emissions intensity saw a slight decrease over the same period, which was likely due to reduced coal sales.

PTT’s climate strategy is not credible, primarily because it is targeting an increase in overall scope 1 and 2 emissions, instead of a decrease. PTT has no plans to cease fossil fuel exploration or phase out its coal business. It does not clearly disclose its CapEx or R&D spending in low-carbon and mitigation technologies.