Corporate Governance

IRPC Joining UN Global Compact

IRPC's Board of Directors recognizes the significance of being an integral part of the global society. As a good corporate citizenship, with a commitment to co-create a better living for the people as a whole, the Board thus encourages IRPC to voluntarily register its signatory with the UN Global Compact on 21 Nov 2011, as one of the members - among the existing 10,000 members from 145 countries around the world in this global initiative.

Joining the UN Global Compact can well express IRPC's strong ambition in becoming one of the world's good corporate citizens by aligning its business strategies and operations with the ten universally-accepted principles in the areas of human rights, labour, environment and anti-corruption with an expectation that happiness throughout the world will be jointly established and shared.

In light of its philosophy, IRPC has long been aiming for sustainability development; that is, striving for the balance in the benefit of its economy, the society and the environment. In other words, those engagements are thoroughly corresponded with the mentioned ten principles. Besides, being participant will enhance recognition in IRPC's policies and actions/ activities through its communication by publicly disclosing its practical progress known as Communication on Progress (COP) annually.

2014 onwards, IRPC upgrade the Communication on Progress Report of our activities to be in accordance with Advanced Level of UNGC reporting criteria from previously Active Level, in order to reflect our strong intention to support UNGC Principles

IRPC encourages employee at all levels to put these principles into practice for resulting in the sustainable achievement. (For more information, please visit www.unglobalcompact.org)
  UN Global Compact Principles Conventions
Criterion 1 : The COP describes mainstreaming into corporate functions and business units IRPC’s sustainability philosophy has been integrated in the company’s business strategy by setting a policy and development plan to regularly improve management towards sustainability taking into considerations human rights, labor rights, environments, and anti-corruption. In order to achieve practical results a corporate governance policy was set up for IRPC’s board of directors, executives, and all employees. IRPC and its’ subsidiaries are striving to drive business growth along with social and environmental responsibility to achieve sustainable development. Being aware of the importance of sustainable development, IRPC identifies its’ business principles through corporate planning, risk management, and materiality assessment as well as corporate governance, QSHE management, and corporate social responsibility to ensure that IRPC’s including companies’, which IRPC has an equity control, operations, monitoring, and reporting process, are in line with the sustainable development Principles. IRPC has initiated several projects with regard to sustainable development in an effort to extend awareness and business ethics amongst customers and suppliers in the petrochemical industry and other related industries and to ensure wider acceptance and satisfaction amongst the Thai society and global communities
  1. CEO Statement
  2. Sustainability Management
  3. Risk Management
  4. Oil and Chemical Spill
  5. Climate Change Management and Adaptation
  6. Water Management
  7. Our Employee
  8. New Project Development
  9. Occupational Health and Safety Management
  10. Community Relation and Development
  11. Corporate Governance and Business Ethics
Criterion 2 : The COP describes value chain implementation IRPC has prepared a sustainable supplier code of conduct for suppliers to apply in practice. Suppliers must be aware of business ethics that focus on all legal compliances, industrial standard accreditation, human and labor rights, and safety, health, and environments. Additionally, IRPC assesses risk of suppliers and contractors to ensure cooperation in social development as well as to resolve and reduce impacts to the business and environment. Policy, guideline and the importance of sustainability management and the campaign for action have been communicated to business partners, suppliers, shareholders, community, and young people through IRPC’s website, newsletter, meetings, joint activities as well as through the media. IRPC’s value chain is elaborated in our business chapter.
  1. Supply Chain Management
  2. Sustainability Management
  3. Our Business
Criterion 3 : The COP describes robust commitments, strategies or policies in the area of human rights IRPC operates with respect and abidance to the principles of human rights according to Thailand’s labor law and has joined The Universal Declaration of Human Right (UDHR) by the United Nation. IRPC respects human rights of all stakeholders throughout the value chain as stated in the CG handbook which incorporates governance policy, business ethics, and code of conduct. IRPC has applied human rights principles into the practice guideline i.e. avoiding discrimination and slavery, paying attention to safety of lives and assets, treating others with regard to human dignity, providing fair employment and safe workplace, respecting labor rights, and providing better living quality to all employees and appended into policy, strategy, and the organization’s work process to ensure respect and protection to human rights in an efficient manner.
  1. Community Relation and Development
  2. Occupational Health and Safety Management
  3. www.irpc.co.th
Criterion 4 : The COP describes effective management systems to integrate the human rights principles IRPC implements the Security, Safety, Health, and Environment Operational Excellence Management System (SSHE OEMS) to ensure safety of employees’ lives and assets as well as those of contractors’. In terms employee capability development, IRPC has a human resource management system using 360 degrees assessment to develop mid-management level and attitude assessment according to their responsibilities, growth direction of the business, and appropriate career path. IRPC has a grievance channel for employee to exercise their rights to express opinions and concerns. A fair grievance investigation process is conducted by the audit committee, which is a sub-committee of IRPC’s board of directors, who recognize the importance of equitable and vigilant investigation. IRPC recognizes the importance of environmental and community risk management to reduce impacts and maximize safety to the communities using the “Happy Rayong” strategy In terms of customer relationship management, IRPC has systems to survey customer’s needs and receive customer’s complaints to improve product and service quality and to meet customers’ needs
  1. Our Employee
  2. Community Relation and Development
  3. Occupational Health and Safety Management
  4. Customer Relations Management
Criterion 5 : The COP describes effective monitoring and evaluation mechanisms of human rights integration IRPC closely monitors human rights through suggestions and complaints by internal and external stakeholders, which has been set as one of the corporate performance indicators. Several channels of communication, such as e-mail, website, PO Box 35, and telephone, have been provided to stakeholders for submitting their comments and feedback. By visiting IRPC’s website, stakeholders are able to directly communicate with chairman of audit and corporate governance committees. IRPC assesses human rights risk and its impacts through ISO 14001 standard. In 2014, IRPC pragmatically started to implement supplier screening criteria addressing human rights aspects as regulated by Thailand’s labor law.
  1. Corporate Governance and Business Ethics
  2. Our Employee
  3. Supply Chain Management
Criterion 6 : The COP describes robust commitments, strategies or policies in the area of labor IRPC fully respects labor law and promotes labor relation by strictly complying with the law and operating accordingly to the international labor principles, such as the International Labor Organization’s Declaration on Fundamental Principles and Rights at Work. In addition, IRPC has clearly stipulated labor rights in the CG handbook, which includes corporate governance policy, business ethics, and the code of conduct. IRPC is committed to develop employee capabilities in order for employee and the organization to grow simultaneously by applying the Human Capital Excellence Roadmap 2013 - 2020. IRPC’s sustainable supplier code of conduct has been prepared accordingly to the procurement policy and strategy to promote labor and human rights, health, safety, and environment, and business partners and suppliers. The sustainable supplier code of conduct provides a procurement practice guideline with a focus on business ethic awareness Business Ethics
  1. Our Employee
Criterion 7 : The COP describes effective management systems to integrate the labor principles IRPC has a risk management policy in place for all employees to adhere to as well as business continuity plan to prevent losses in human resource, finance, and reputation. IRPC’s employee performance appraisal system including rewards, remuneration, and penalty, is based on integrity, fairness, bias-free, and clarity. Employee capability assessment is fundamental to the remuneration consideration. Human resource department is responsible for all labor aspects and for setting a policy to ensure that executives take proper care for his/her subordinates and act on behalf of HR department to communicate with employees to create mutual understanding and ensure equal benefits. Newly recruited employees are informed of their labor rights during the orientation week. Labor rights training is provided to all employees to notify them of their rights and responsibility according to the company’s and other related regulations. IRPC offers opportunities to all employees to exercise their rights by contacting commander in chief, labor union, labor committee, and PO Box 35. IRPC has prepared a sustainable supplier code of conduct and business ethics for employees and suppliers to adhere to and apply in practice. Content includes guideline of practice under laws and regulations, business ethics as well as anti-corruption measures, human rights, and health, safety and environment.
  1. Risk Management
  2. Our Employee
  3. Corporate Governance and Business Ethics
  4. Supply Chain Management
Criterion 8 : The COP describes effective monitoring and evaluation mechanisms of labor principles integration IRPC has a monitoring system that covers all aspects including labor i.e. corporate performance indicators, deriving from internal and external stakeholders’ suggestions, that are used to drive the organization from the top down. Additionally, IRPC conducts satisfaction surveys for employees and customers, questionnaires to collect suggestions and comments, representing two-way communication to gather comprehensive information. IRPC also provides internal channels to allow every employee to post their queries on the company’s intranet and file a case of grievance
  1. Our Employee
  2. Corporate Governance and Business Ethics
Criterion 9 : The COP describes robust commitments, strategies or policies in the area of environmental stewardship IRPC has a policy that integrates environmental, social, and governance (ESG) into the business strategy to ensure sustainable operations. Specific responsibilities have been set for all levels of employees, from board of directors to operators. IRPC also has a QSHE policy, which is driven by the Operational Excellence Management System (OEMS) Details on QSHE policy and management can be found at www.irpc.co.th
  1. Corporate Governance and Business Ethics
  2. Environmental Management
Criterion 10 : The COP describes effective management systems to integrate the environmental principles IRPC assesses environmental risk and impacts through corporate performance indicators, risk management framework, and materiality assessment. IRPC has a policy to promote the development of environmentally friendly products and processes and is fully aware of the impact throughout the product life cycle. IRPC sets targets to reduce Greenhouse Gas emission and increase energy efficiency as well as resource management. IRPC studies improvement of its existing production processes; the Company prevents and resolves any possible impact caused by the development of new projects in order to ensure that all business activities will not affect the communities and environments. IRPC is open to all suggestions and feedback from stakeholders in the industrial area to establish trust and build confidence with stakeholders. IRPC provides channels to communicate suggestions, comments, and concerns via e-mail, website, and telephone. IRPC sets a policy for sustainable operation,
  1. Risk Management
  2. Environmental Management
  3. Product and Innovation
  4. New Project Development
  5. Emission Management
  6. Climate Change Management and Adaptation
  7. Water management
  8. Waste Management
  9. Oil and Chemical Spill
Criterion 11 : The COP describes effective monitoring and evaluation mechanisms for environmental stewardship IRPC’s environmental monitoring and assessment are conducted via QSHE management system. Monitoring and assessment results will be reported to the corporate governance committee and the chairman of board of directors on a quarterly basis and upon the event. IRPC implements business continuity management (BCM) by ISO 22301:2012 to alleviate impact from any business interruption as well as to prevent social and environmental impacts. Emergency and crisis management plan is implemented. IRPC has, in place, air and water quality monitoring system and up-to-standard and efficient waste management. For example Volatile Organic Compound (VOC) Emission Inventory, automatic air quality monitoring stations both fixed and mobile, and LCD boards displaying measurement results to illustrate that emission from
  1. Risk Management
  2. Emission Management
Criterion 12 : The COP describes robust commitments, strategies or policies in the area of anticorruption IRPC is committed to having high operational efficiency, corporate governance and management excellence organization with regard to all stakeholders, good business ethics, transparency, and auditability. IRPC has an anticorruption and conflict of interest policy. All measures, provide anonymity, different channels for complaints, are transparent and offer equitable investigation processes. IRPC has been certified as an alliance member of the Collective Action Coalition Against Corruption (CAC) by the Anti-Corruption Organization of Thailand on the 4th of April 2014. This is to certify that IRPC has a complete anti-corruption policy and guideline as CAC regulates. In addition, IRPC has joined Call to Action by UN Global Compact, in which IRPC’s CEO being a signatory in the Call to Action: Anti-Corruption and the Global Development Agenda to UN Global Compact to declare intention to stakeholders and the society in general regarding IRPC’s commitment to stand against corruption. IRPC’s anti-corruption commitment is included in the corporate compliance policy
  1. Corporate Governance and Business Ethics
Criterion 13 : The COP describes effective management systems to integrate the anticorruption principle IRPC has a corporate governance manual, which designates director’s qualification and nomination, director independency, roles and responsibilities, sub-committee appointment, board meeting, board assessment, board’s and CEO’s compensation, board’s, executives, and employee’s ethics, transparent disclosure, audit committee and auditors, risk management, rights and equitability of shareholder, roles toward stakeholders, whistle blowing policy, and succession plan. Moreover, IRPC has an anti-corruption and conflict of interest policy, measures, provide anonymity, different channels for complaints, are transparent and offer equitable investigation processes. In 2014, IRPC prepared a sustainable supplier code of conduct and business ethics for both employees and suppliers to adhere to and apply into practices. Content includes guideline of practice under laws and regulations, business ethics as well as anti-corruption measures, human rights, and health, safety and environment. IRPC has a policy that integrates environmental, social, and governance (ESG) into the business strategy to ensure sustainable operations. Specific responsibilities have been set for all levels of employees, from board of directors to operators. IRPC provides different channels to communicate suggestions, comments, and concerns via e-mail, website, and telephone.
  1. Corporate Governance and Business Ethics
  2. Supply Chain Management
Criterion 14 : The COP describes effective monitoring and evaluation mechanisms for the integration of anti-corruption IRPC’s board of directors and audit committee are responsible for monitoring transparency in the business operations in accordance with legal regulations. In terms of board’s assessment, IRPC conducts internal assessments for board of director and sub-committees at least once a year as regulated by the corporate governance manual. The board is also assessed by external auditors from Corporate Governance Report (CGR) by the Thai Institute of Directors (IOD) and the Collective Action Coalition Against Corruption (CAC), which IRPC has recently joined. IRPC has received level 4 (certified) in the Anti-Corruption Progress Indicator assessment from the Securities and Exchange Commission in 15th October 2014. IRPC provides several channels of communication, such as e-mail, website, PO Box 35, and telephone, to stakeholders to submit their comments and feedback. On IRPC’s website, stakeholders are able to directly communicate with chairman of audit and corporate governance committees
  1. Corporate Governance and Business Ethics
Criterion 15 : The COP describes core business contributions to UN goals and issues IRPC aims to improve its corporate governance in all aspects in order to become a sustainable organization and to support UN goals and other international standards. IRPC, in collaboration with government agencies, NGOs, and private sector, is striving to improve the economy, quality of life and the environment with an aim to achieve more advanced sustainable development and wider acceptance in the society. Currently, IRPC operates in line with ISO standards and elevates its commitment to the UNGC Advanced Level. IRPC discloses sustainability management information in the sustainability development report in line with GRI framework as well as being included in the Dow Jones Sustainability Index (DJSI) 2014: Emerging Market, Oil & Gas Industry
  1. CEO Statement
Criterion 16 : The COP describes strategic social investments and philanthropy IRPC establishes relationships with the communities using its “Happy Rayong” strategy consisting of 5 aspects, which are Safety, Health, and Wealth development, Community development, Proactive communication, Environmental conservation, and Implementation of environmentally friendly production processes. Each project is being developed in line with the strategy in order to improve living quality in the communities by becoming self-reliant and coexist with IRPC with good rapport. Furthermore, IRPC has a CSR strategy for areas outside its industrial zone in order to help alleviate water shortage, lack of education, and disadvantages of disability in the communities. IRPC has provided volunteer hours, funding, and products in effort to resolve these issues.
  1. Community Relation and Development
Criterion 17 : The COP describes advocacy and public policy engagement IRPC operates accordingly to its sustainability management principles taking into considerations economic, social, and environmental aspects. Furthermore, IRPC assesses climate change risk and impacts and prepares efficient prevention measures to ensure sustainable operations. IRPC focus is to become Top Quartile energy efficient organization by 2020 by improving its energy efficiency and reducing GHG emissions. IRPC follows 3 operational approaches namely green process, green logistics, and low carbon and energy efficiency product.
  1. Climate Change Management and Adaptation
Criterion 18 : The COP describes partnerships and collective action IRPC establishes relationships with communities, promotes stakeholder engagement, and collaborates with government agencies including suppliers and business partners to form alliances to develop new projects that could improve living quality in the communities by becoming self-reliant and coexist with IRPC with good rapport. IRPC has appointed committees as well as assigned responsibilities to several functions i.e. corporate governance division, CSR department and the corporate strategic planning, and in collaboration with other PTT Group’s companies, the Stock Exchange of Thailand, and other government agencies, such as Thailand Greenhouse Gas Organization (Public Organization) to create benefits to the public.
  1. Community Relation and Development
  2. Oil and Chemical Spill
Criterion 19 : The COP describes CEO commitment and leadership IRPC presents annually the CEO statement in the annual review and sustainability development report which illustrate its vision and commitment to develop business growth together with social and environment development in a sustainable manner.
  1. CEO Statement
Criterion 20 : The COP describes Board adoption and oversight Details on Board’s structure and corporate governance can be found in the Corporate Governance and Business Ethics chapter
  1. Corporate Governance and Business Ethics
Criterion 21 : The COP describes stakeholder engagement IRPC’s stakeholders include shareholders/investors, customers/ consumers, suppliers, competitors, debtors, employees, society and environments. Stakeholder engagement performance is reported in the corporate governance committee meeting on a quarterly basis. IRPC hosts several activities, seminars, trainings, public hearings with stakeholders in order to obtain its social license and trust. IRPC not only operates to increase value and efficiency for the business, and society; IRPC also analyses, prevents, and resolves any possible impacts caused by new project development.
  1. Corporate Governance and Business Ethics
  2. New Project Devel