Material
topics
Study Petrolimex's background
To have a comprehensive understanding of Petrolimex’s sustainability background, we study sustainable development in global context and in Vietnam as well as nature of the industry, core business activities and business relations. At the same time, we also collect and analyze requests, aspirations from stakeholders of Petrolimex.
Identifying actual and potential impacts
We set up a preliminary list of positive and negative impacts (actual and potential) on environment, society and economy through internal surveys and consultations with stakeholders.
Assess impacts
From the preliminary list of positive and negative impacts identified in step 2, we assess these impacts based on 04 main criteria including: scale, size, problem solving skill and possibility of impacts.
Rank significant impacts of piority
Finally, we conduct interviews with Petrolimex’s leadership team to see how to describe material impacts to select the most serious impacts and group of impacts based on topics, then identify a list of material topics. The material topics are identified and approved through a meeting between Deputy General Director in charge of sustainability report team and mid-level management group in charge of sustainability content; then reporting to the General Director and BOD Chairman.
MATERIAL TOPICS
Economic topics
GRI 201
Economic performance
Facing difficult circumstances in 2022, the Group’s business performance has been significantly improved compared to 2021, ensuring its key role in stabilizing the petroleum market and national energy security. Total revenue and profit before tax of the Group in 2022 are respectively 304,064 billion VND and 2,270 billion VND.
GRI
Application of science àn technology into operations management
Since Covid-19 pandemic outbreak, the Group, through network applications, has organized online meetings such General Meeting of Shareholders – one of the most important meetings with participations of all employees. Till 2022, the Group still maintains such online meetings and achieve results as follows:
- Ensure work efficiency no matter where employees are physically located around the world, ensure work efficiency despite of “geographical distance”, employees of Petrolimex still stand “close together” to capture the concept of work, implement and boost their productivity at work.
- Improve cost efficiency and maximize time efficiency for all employees and shareholders. The Group timely ensures equality and interests of shareholders. This is a positively support solution for successful meetings of Petrolimex.
GRI 202
Market present
Petrolimex identifies salary policy as an important tool to motivate and attract human resource, improve labor productivity sustainability goals. The good pay policy will minimize risks and ensure living standard for employees and their families, having positive impacts on social security, contributing to social progress and equality. Besides, the good pay policy also helps increase local consumption due to guaranteed employee income, contributing to higher GDP growth, improving growth quality and promote socio-economic sustainability.
The entry level wage paid to employees of Petrolimex without gender discrimination is always higher than the regional minimum wage stipulated by the Government to promote gender equality in the workplace. Now, the lowest entry level wage paid to employees at Petrolimex is higher than the regional minimum wage stipulated by the State at least by 15%.
In 2022, Petrolimex has paid 2,785 billion VND from the wage fund for employees of 43 member units with an average wage of 12.69 million VND/person/month, up 22.9% compared to average wages in 2021.
GRI 203
Indirect economic impacts
Investment in core activities: In 2022, the Group has invested in projects with total value of 1,032 billion VND (terminal, pipeline, headquarter, development of petroleum stations, equipment, IT and other ancillary works)
Social Security benefits: The Group has funded construction of 60 houses for the poor households in Tuyen Quang province. Support to build a library for Phinh Phang Semi-Boarding Secondary School for Ethnic Minorities worth 550 million VND.
Job creation, poverty and hunger reduction: With a network covering 63/63 cities and provinces nationwide including 2,760 petroleum stations owned and operated by Petrolimex (COCO) and more than 2,800 petroleum stations owned and operated by dealers (DODOS), Petrolimex not only meets production requirements and people’s lives but also creates jobs for 18,942 laborers (Parent Company-the Group and 43 single member limited petroleum companies). The Group has made significant contributions to national economic development, especially in remote, mountainous and island areas with high poverty rates.
Petroleum price stabilization, inflation control, Marco-economic stability.
Response to “Vietnamese people prioritize using Vietnamese products” campaign.
Promote social security through community activities.
Contribute to State budget 34,999 Billion VND
Material topics
Environmental topics
GRI
Natural disaster prevention and control, search and rescue
In 2022, total of 07 storms and 01 tropical depressions have affected the East Sea, 03 storms hit the Vietnamese land including: storm No 2 (MULAN) entering Quang Ninh – Hai Phong on the morning of 11th August; storm No 4 (NORU) entering Thua Thien Hue-Quang Ngai on the morning of 28th September; storm No 5 (SONCA) entering Quang Nam-Quang Ngai on the morning of 15th October.
Thanks to frequently updating storm information on mass media as well as closely following guidance of Steering Committee for Natural Disaster Prevention, Search-Rescue and Civil Defense of the Ministry of Industry and Trade, the Group sends urgent message, before every storm, to member units where the storms pass and requests to implement measures for natural disaster prevention, search-rescue. Thanks to effective implementation of measures on natural disaster prevention, search-rescue, the Group suffered no damages to human and assets, while ensured quality of petroleum and supply after the storm completely passed.
GRI 306
Effluents and waste
Petrolimex deeply engages in downstream petroleum business – distribution and retail, excluding production. Therefore, the nature of emissions caused from business activities of Petrolimex is similar to that of commercial sectors and completely different from emissions emitted by other industries.
SOLID WASTE AND EFFLUENTS: With petroleum as its main business under trade and service sectors without direct production and input material, so Petrolimex has just released a small amount of solid waste and wastewater.
- Daily released solid waste at facilities include: domestic waste (vegetable, vegetable roots, fruits, leaves, grass, paper, etc.) and common industrial solid waste (non-hazardous packages). Average amount of wastes of every petroleum station is approximately 70kg/month.
- Domestic waste is classified at source in organic and inorganic trash cans at many different locations such terminal, jetty and petroleum stations, retail stores. Non-hazardous common industrial solid waste is classified, collected and gathered in a common area of each unit as stipulated.
- Member units sign service contracts with environmental service companies, urban environment companies in localities or waste collection units, cooperatives, licensed units in the localities; these companies will collect, transport wastes to waste gathering points of cities, provinces for treatment as stipulated.
- Wastewater at petroleum projects is collected and treated as follows: domestic wastewater is collected and treated through septic tanks, ensuring water quality standards before discharging to receiving sources; Oil-contaminated wastewater generated at petroleum terminals and stations is collected through a system of ditches, trenches, sumps, stop valves, etc. separately and then transmitted to receiving sources before being put into a wastewater treatment system. After being treated in compliance with QCVN 29:2010/BTNMT standards, wastewater will be discharged into receiving sources.
- Average amount of domestic waste water at petroleum station is approximately 10m3/petroleum station/month
- Assessment on demand of reuse and recycling of waste water: due to operational characteristics, terminals and petroleum stations do not use water as input materials, so waste water mainly generates from rainwater runoff.
HAZARDOUS WASTES:
- Hazardous waste petroleum facilities is mainly waste sludge generated during petroleum tank and pipeline cleaning process (accounting for 35% of total hazardous waste generated) and sludge from oil/water separators (accounting for 12% of total hazardous waste generated)
- Hazardous waste after being collected will be stored in the hazardous waste storage area.
- Hazardous waste is stored in separate package/container, marked with separate codes which are registered at Register for hazardous waste source owner or environmental license. Member units sign service contracts with qualified organizations and units and been licensed for collection, transport and treatment of hazardous waste as stipulated.
- Hazardous waste is classified from the moment of being put into hazardous waste storage or transmitted to hazardous waste treatment units (for hazardous waste not transferred into hazardous waste storage) at the facility.
GRI 306
Oil spill control
Petrolimex commits to strictly complying with The State’s regulations and of the Group on prevention of oil spill incidents.
Petrolimex always focuses on reviewing environmental protection system at member units and minimize environmental impacts, ensuring compliance with Laws on Environmental Protection and Regulations on Environmental Protection of Vietnam National Petroleum Group issued on 06th January 2016, Decision No.007/PLXQD-HDQT and regulations on inspection, maintenance of petroleum tanks and pipeline of the Group. At the same time, Petrolimex also strengthen digital transformation, automation; improve efficiency of inspection, maintenance, repair and environmental protection in technical management activities at petroleum projects as well as in the whole system.
In order to prevent oil spills, all petroleum terminals and stations are equipped with enough workforce and material systems, being ready for responding to oil spills as planned. Every member unit has a commanding board for oil spill response, organizing internal oil spill response training courses y-o-y or in collaboration with local units and at least once in 6 months.
Procedures for oil spill response correspond to classifications of oil spill incidents at petroleum stations, specifically:
- Oil spill below 0.5 ton: Petroleum stations proactively deal with oil spill incidents depending on the actual situation of permanent on-site workforce, status and amount of on-site equipment and materials. In case of failure, petroleum stations must ask for assistance from superior management units. Head of petroleum station or authorized person in the absence of the head when a oil spill occurs must be responsible for overseeing the incident, organizing, managing and arranging workforce, equipped to quickly respond.
- Oil spill from 0.5 ton to below 20 ton: Petroleum stations must report to superior management units to mobilize support for oil spill response. The Commanding Board for oil spill response of senior management unit bears responsibility for organizing and arranging workforce, equipment to quickly and timely respond to oil spill.
- Oil spill above 20 ton: In case of failure in response, on-site resources are not enough to cope with, senior management units must report to functional agencies and oil spill response forces for assistance. Then, responsible for organizing and overseeing will be transferred from the on-site commanding board to functional agencies or oil spill response forces.
Apart from management measures, Petrolimex also purchases 4 types of public liability and environmental protection insurance for the whole system of petroleum stations, terminals, jetty, and pipelines.
GRI 308
Supplier Environmental Assessment
In 2022, Petrolimex’s main petroleum source was provided by domestic suppliers (Nghi Son Refinery and Petrochemical LLC – NSRP, Binh Son Refinery and Petrochemical Company – BRS) – accounting for 55% of total petroleum source. Domestic suppliers must ensure compliance with the Laws on Environmental Protection in Vietnam and other environmental standards.
The remaining 45% is provided by foreign suppliers such as Trafigura, ENEOS, Lukoil, PetroChina, etc. These suppliers are the big ones with environmental protection policies and standards. In 2022, no major incidents recorded that seriously affect the surrounding environment.
Some of Petrolimex's suppliers: Nghi Son Refinery and Petrochemical LLC (NSRP), Trafigura Group Pte. Ltd, Marquis Energy Global Pte. Ltd (Products supplied in 2022: E100), PNX Petroleum Singapore Pte Ltd (Products supplied in 2022: gasoline).
Common requirements of selection of petroleum suppliers:
- Apart from requirements of finance and price, Petrolimex’s top criteria is to ensure safety of source, clear information about origin, production facilities and quality of petroleum products comply with regulations of Vietnam or requirements of the Group. Petroleum suppliers must have a good reputation and rich experience in the petroleum business with a clear sales network and technical facilities.
- Domestic suppliers must ensure compliance with the Law on Environmental Protection of Vietnam and other environmental standards. Foreign suppliers are large-scale ones with environmental protection policies and standards. In 2022, no major incidents recorded that seriously affect surrounding environment.
- Especially, some of trading products of the Group has technical requirements for source generation higher than national technical standards and Vietnam standards.
Material topics
Social topics
GRI 401
Employment and income
Petrolimex has fully promulgated mechanisms and regulations to serve management activities such as: regulations own training management, collective bargaining agreements, regulations of salary and bonus, labor regulations, staff regulations, etc.
Based on a continuous scale and growth, it requires an abundance workforce in both quality and quantity. This helps stabilize labor market, ensure employment and gradually improve employees’ living standards, make important contributions to social security and economic development. Therefore, Petrolimex always focuses on developing and managing its human resource in an effective and synchronous manner.
In 2022, Petrolimex:
- It is not allowed to terminate labor contract with employees (unless employees have a written request for termination of labor contracts for personal reasons) due to pandemic outbreak leading to non-fulfillment of jobs or other reasons.
- Ensure salary income and annuity (including: salary, social insurance, health insurance, unemployment insurance, etc.) for employees that are not lower than salary of employees for each job title.
- Build and implement synchronous solutions to promote digital transformation, improve abilities and skills for employees, cutting workforce to improve efficiency of organization, management of business activities; Reviewing regulations and business and production process, strengthening human resource for reasonable business and production management, arranging, allocating and using human resource reasonably in line with requirements of current business and production as well as petroleum market changes in the coming time.
Human is one of the key and decisive factors in Petrolimex’s success. Therefore, Petrolimex always pay special attention to employee policies.
- REMUNERATION POLICY: In 2022, Petrolimex assigned the adjusted a salary plan to companies from 01st July 2022 on purpose of improving salary, income and living standard for employees.
- LABOR CONTRACT AND INSURANCE: Petrolimex fully implements employee policies in accordance with regulations, Petrolimex signs labor contracts with 100% of employees who are required to sign labor contracts in accordance with regulations of the Labor Law. Petrolimex fully implements insurance regimes in accordance with regulations of Labor Law including social insurance, health insurance, unemployment insurance, occupational accident insurance, occupational disease, pension, maternity allowance, etc.
- OTHER BENEFITS: Employees of Petrolimex are entitled to other benefits of the Welfare Fund and specific regulations in the collective bargaining agreement. In addition, Petrolimex implements expenditures from welfare spending equivalent to 1 month salary (stipulated by the Government) to pay for purchasing health care insurance, vacations, transport costs on holidays, Tet holiday, etc. for employees.
GRI 402
Labor management relations
Petrolimex commits to fully complying with regulations of the Labor Code in 2019 to ensure better rights and legitimate benefits of employees and employers; Ensure harmony of interests of employees and employer in line with socio-economic development of Vietnam, build a harmonious, stable and progressive labor relations, promote labor market development and meet requirements of international economic integration.
Through the annual employee conference and the terms of collective bargaining agreements, the Group will announce and provide employee related information, policies and regulations in an active, adequate and clear manner. It helps enhance employee trust, promote good labor-management relations, create a positive, inclusive and fair working environment, reduce the turnover rate and minimize business and production disruptions in the Group.
100% of member units of the Group build and sign collective bargaining agreements in accordance with Labor Law and notice to local authorities before implementation. The contents of collective bargaining agreements should provide for the terms and conditions that are more favorable to the employees.
GRI 403
Occupational health and safety
There are potential dangers in petroleum business, leaders of Petrolimex and member units, trade union and grassroots-level unions of Petrolimex have identified: any negligence in business and production activities, if any, will become a disaster affecting health and life of human, property, order, security, environment and community, etc. Therefore, the Group has implemented many policies and measures to prevent and ensure occupational safety and labor protection for employees, complying with occupational safety regulations and being well-prepared for potential dangers.
The Group manages occupational health and safety regulations on occupational health and safety accompanied by Decision No 035/PLX-QD-HDQT dated 11th January 2017. Accordingly, every unit must arrange a full-time/part-time staff on occupational safety and health, establish a Council/Steering Committee on occupational safety and health including representatives of the employer: representative of the grassroots-level trade union executive committee, health workers in business and production facilities.
Units, on a yearly basis, should set up occupational health and safety plan with contents specified in regulations on occupational health and safety.
Every unit must arrange persons (full-time or part-time) in charge of occupational health and safety or establish a management unit of occupational health and safety to ensure minimum requirements.
At Parent Company-the Group: occupational safety and health is directly guided by 01 Deputy General Director. Department of Technology-Safety coordinates with Department of Organization and HR to advise and support General Director to direct, manage and operate occupational health and safety
Petrolimex conducts medical examinations for 100% direct employees
100% of units of Petrolimex will provide in-kind support for employees working in hazardous environment under a list of heavy, hazardous and dangerous occupations. Regarding occupational disease, Petrolimex will conduct periodical annual medical examinations for 100% of employees to timely detect and treat (if any) and ensure employees’ health. Apart from health insurance as stipulated by labor law, employees are covered by comprehensive health care insurance and occupational accident insurance.
Regarding cases of occupational accidents, Petrolimex will carry out compensation policy in accordance with Labor Law based on injury rate; Trade Union and Young Union will visit, encourage and call for support from the Group-wide for cases with extremely difficult circumstances.
WORKER TRAINING ON OCCUPATIONAL HEALTH AND SAFETY: In 2022, a team of lecturers awarded certificates by the Group has trained a total of 12,827 employees under 06 groups of trained objectives on occupational safety and health, issuing certificates for 2,915 employees, issuing safety cards for 8,182 employees, opening training logbook for 1,730 employees.
GRI 404
Training and education
Petrolimex identifies human resources as decisive factor to its sustainability. Therefore, to improve quality of human resources, the Group and member units build plans and implement training courses/programs, re-training to improve qualifications, professional skills, management skills, political theory, foreign language, informatics, career skills for employees. In addition, Petrolimex also focuses on building and training personnel in key areas which can have big impacts on business performance of Petrolimex such as: training program for managers of petroleum, gas, lubricant stations, etc. building, training professional working style, friendly behavior, civilized and polite communication for sales employees at petroleum stations. By doing this helps improve business performance of Petrolimex based on technology platform, optimize the process and improve service quality.
PERFORMANCE IN 2022:
866 trainees participating in training courses on petroleum techniques, safety technology, construction-investment.
34 trainees participating in the MBA program (Andrews MBA) organized by Andrews University (USA) in Vietnam
210 trainees participating in 6 training courses, training program for managers of petroleum stations of Petrolimex
231 trainees participating in 7 training courses, training program for middle managers of Petrolimex
19,104 trainees participating in training courses on digital transformation, automation, IT management system.
GRI 416
Customer health and safety
Always put itself in the position of customers to evaluate its products objectively in all aspects to bring the best quality product and service to customers. As a key player in the petroleum business and distribution, Petrolimex continuously make efforts in completing and improving product quality as well as doing research and developing new, green-clean and environmentally friendly products toward customer health and safety and environmental protection.
All safety measures applied at petroleum facilities of Petrolimex aim to ensure employee and customer safety from source generation to sales, specifically: Petrolimex fully complies with regulations of State management agencies on product quality standards, issuing regulations on product quality standard higher than that of Vietnam standard in terms of technical requirements of current petroleum products to manage effectively from import, storage, transport, applying technology and import-export equipment, storage, transport, etc. limit the release of petroleum vapor to the environment, minimize petroleum evaporation and impacts customers of Petrolimex.
At petroleum stations where employees direct contact with customers, Petrolimex always deploys solutions to ensure the absolute safety. In 2022, Petrolimex has amended and supplemented Regulations on fire prevention & fighting, search-rescue, completing its oil spill response plan for each petroleum station as well as emergency response plan.
All petroleum products must be accompanied by safety data sheets for hazardous chemicals from import by source including information about characteristics, toxicity, ecology, health impact, first-aid steps, etc. in accordance with the Law on chemicals.